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[House Report 112-381]
[From the U.S. Government Publishing Office]

112th Congress 2d Session     HOUSE OF REPRESENTATIVES        Report
                                                             112-381
_______________________________________________________________________
 
                FAA MODERNIZATION AND REFORM ACT OF 2012

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                                H.R. 658

                February 1, 2012.--Ordered to be printed

                FAA MODERNIZATION AND REFORM ACT OF 2012
112th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                112-381
_______________________________________________________________________

                                     

                FAA MODERNIZATION AND REFORM ACT OF 2012

                               __________

                           CONFERENCE REPORT

                              to accompany

                                H.R. 658

                February 1, 2012.--Ordered to be printed
112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-381

======================================================================

                FAA MODERNIZATION AND REFORM ACT OF 2012

                                _______
                                

                February 1, 2012.--Ordered to be printed

                                _______
                                

  Mr. Mica, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 658]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
658), to amend title 49, United States Code, to authorize 
appropriations for the Federal Aviation Administration for 
fiscal years 2011 through 2014, to streamline programs, create 
efficiencies, reduce waste, and improve aviation safety and 
capacity, to provide stable funding for the national aviation 
system, and for other purposes, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``FAA 
Modernization and Reform Act of 2012''.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Effective date.

                         TITLE I--AUTHORIZATIONS

                   Subtitle A--Funding of FAA Programs

Sec. 101. Airport planning and development and noise compatibility 
          planning and programs.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. FAA operations.
Sec. 104. Funding for aviation programs.
Sec. 105. Delineation of Next Generation Air Transportation System 
          projects.

                 Subtitle B--Passenger Facility Charges

Sec. 111. Passenger facility charges.
Sec. 112. GAO study of alternative means of collecting PFCs.
Sec. 113. Qualifications-based selection.

                    Subtitle C--Fees for FAA Services

Sec. 121. Update on overflights.
Sec. 122. Registration fees.

          Subtitle D--Airport Improvement Program Modifications

Sec. 131. Airport master plans.
Sec. 132. AIP definitions.
Sec. 133. Recycling plans for airports.
Sec. 134. Contents of competition plans.
Sec. 135. Grant assurances.
Sec. 136. Agreements granting through-the-fence access to general 
          aviation airports.
Sec. 137. Government share of project costs.
Sec. 138. Allowable project costs.
Sec. 139. Veterans' preference.
Sec. 140. Minority and disadvantaged business participation.
Sec. 141. Special apportionment rules.
Sec. 142. United States territories minimum guarantee.
Sec. 143. Reducing apportionments.
Sec. 144. Marshall Islands, Micronesia, and Palau.
Sec. 145. Use of apportioned amounts.
Sec. 146. Designating current and former military airports.
Sec. 147. Contract tower program.
Sec. 148. Resolution of disputes concerning airport fees.
Sec. 149. Sale of private airports to public sponsors.
Sec. 150. Repeal of certain limitations on Metropolitan Washington 
          Airports Authority.
Sec. 151. Midway Island Airport.
Sec. 152. Miscellaneous amendments.
Sec. 153. Extension of grant authority for compatible land use planning 
          and projects by State and local governments.
Sec. 154. Priority review of construction projects in cold weather 
          States.
Sec. 155. Study on national plan of integrated airport systems.
Sec. 156. Airport privatization program.

  TITLE II--NEXTGEN AIR TRANSPORTATION SYSTEM AND AIR TRAFFIC CONTROL 
                              MODERNIZATION

Sec. 201. Definitions.
Sec. 202. NextGen demonstrations and concepts.
Sec. 203. Clarification of authority to enter into reimbursable 
          agreements.
Sec. 204. Chief NextGen Officer.
Sec. 205. Definition of air navigation facility.
Sec. 206. Clarification to acquisition reform authority.
Sec. 207. Assistance to foreign aviation authorities.
Sec. 208. Next Generation Air Transportation System Joint Planning and 
          Development Office.
Sec. 209. Next Generation Air Transportation Senior Policy Committee.
Sec. 210. Improved management of property inventory.
Sec. 211. Automatic dependent surveillance-broadcast services.
Sec. 212. Expert review of enterprise architecture for NextGen.
Sec. 213. Acceleration of NextGen technologies.
Sec. 214. Performance metrics.
Sec. 215. Certification standards and resources.
Sec. 216. Surface systems acceleration.
Sec. 217. Inclusion of stakeholders in air traffic control modernization 
          projects.
Sec. 218. Airspace redesign.
Sec. 219. Study on feasibility of development of a public internet web-
          based resource on locations of potential aviation 
          obstructions.
Sec. 220. NextGen research and development center of excellence.
Sec. 221. Public-private partnerships.
Sec. 222. Operational incentives.
Sec. 223. Educational requirements.
Sec. 224. Air traffic controller staffing initiatives and analysis.
Sec. 225. Reports on status of greener skies project.

                            TITLE III--SAFETY

                     Subtitle A--General Provisions

Sec. 301. Judicial review of denial of airman certificates.
Sec. 302. Release of data relating to abandoned type certificates and 
          supplemental type certificates.
Sec. 303. Design and production organization certificates.
Sec. 304. Cabin crew communication.
Sec. 305. Line check evaluations.
Sec. 306. Safety of air ambulance operations.
Sec. 307. Prohibition on personal use of electronic devices on flight 
          deck.
Sec. 308. Inspection of repair stations located outside the United 
          States.
Sec. 309. Enhanced training for flight attendants.
Sec. 310. Limitation on disclosure of safety information.
Sec. 311. Prohibition against aiming a laser pointer at an aircraft.
Sec. 312. Aircraft certification process review and reform.
Sec. 313. Consistency of regulatory interpretation.
Sec. 314. Runway safety.
Sec. 315. Flight Standards Evaluation Program.
Sec. 316. Cockpit smoke.
Sec. 317. Off-airport, low-altitude aircraft weather observation 
          technology.
Sec. 318. Feasibility of requiring helicopter pilots to use night vision 
          goggles.
Sec. 319. Maintenance providers.
Sec. 320. Study of air quality in aircraft cabins.
Sec. 321. Improved pilot licenses.

                  Subtitle B--Unmanned Aircraft Systems

Sec. 331. Definitions.
Sec. 332. Integration of civil unmanned aircraft systems into national 
          airspace system.
Sec. 333. Special rules for certain unmanned aircraft systems.
Sec. 334. Public unmanned aircraft systems.
Sec. 335. Safety studies.
Sec. 336. Special rule for model aircraft.

                   Subtitle C--Safety and Protections

Sec. 341. Aviation Safety Whistleblower Investigation Office.
Sec. 342. Postemployment restrictions for flight standards inspectors.
Sec. 343. Review of air transportation oversight system database.
Sec. 344. Improved voluntary disclosure reporting system.
Sec. 345. Duty periods and flight time limitations applicable to flight 
          crewmembers.
Sec. 346. Certain existing flight time limitations and rest 
          requirements.
Sec. 347. Emergency locator transmitters on general aviation aircraft.

                   TITLE IV--AIR SERVICE IMPROVEMENTS

             Subtitle A--Passenger Air Service Improvements

Sec. 401. Smoking prohibition.
Sec. 402. Monthly air carrier reports.
Sec. 403. Musical instruments.
Sec. 404. Extension of competitive access reports.
Sec. 405. Airfares for members of the Armed Forces.
Sec. 406. Review of air carrier flight delays, cancellations, and 
          associated causes.
Sec. 407. Compensation for delayed baggage.
Sec. 408. DOT airline consumer complaint investigations.
Sec. 409. Study of operators regulated under part 135.
Sec. 410. Use of cell phones on passenger aircraft.
Sec. 411. Establishment of advisory committee for aviation consumer 
          protection.
Sec. 412. Disclosure of seat dimensions to facilitate the use of child 
          safety seats on aircraft.
Sec. 413. Schedule reduction.
Sec. 414. Ronald Reagan Washington National Airport slot exemptions.
Sec. 415. Passenger air service improvements.

                    Subtitle B--Essential Air Service

Sec. 421. Limitation on essential air service to locations that average 
          fewer than 10 enplanements per day.
Sec. 422. Essential air service eligibility.
Sec. 423. Essential air service marketing.
Sec. 424. Notice to communities prior to termination of eligibility for 
          subsidized essential air service.
Sec. 425. Restoration of eligibility to a place determined to be 
          ineligible for subsidized essential air service.
Sec. 426. Adjustments to compensation for significantly increased costs.
Sec. 427. Essential air service contract guidelines.
Sec. 428. Essential air service reform.
Sec. 429. Small community air service.
Sec. 430. Repeal of essential air service local participation program.
Sec. 431. Extension of final order establishing mileage adjustment 
          eligibility.

                   TITLE V--ENVIRONMENTAL STREAMLINING

Sec. 501. Overflights of national parks.
Sec. 502. State block grant program.
Sec. 503. Airport funding of special studies or reviews.
Sec. 504. Grant eligibility for assessment of flight procedures.
Sec. 505. Determination of fair market value of residential properties.
Sec. 506. Prohibition on operating certain aircraft weighing 75,000 
          pounds or less not complying with stage 3 noise levels.
Sec. 507. Aircraft departure queue management pilot program.
Sec. 508. High performance, sustainable, and cost-effective air traffic 
          control facilities.
Sec. 509. Sense of Congress.
Sec. 510. Aviation noise complaints.
Sec. 511. Pilot program for zero-emission airport vehicles.
Sec. 512. Increasing the energy efficiency of airport power sources.

                TITLE VI--FAA EMPLOYEES AND ORGANIZATION

Sec. 601. Federal Aviation Administration personnel management system.
Sec. 602. Presidential rank award program.
Sec. 603. Collegiate training initiative study.
Sec. 604. Frontline manager staffing.
Sec. 605. FAA technical training and staffing.
Sec. 606. Safety critical staffing.
Sec. 607. Air traffic control specialist qualification training.
Sec. 608. FAA air traffic controller staffing.
Sec. 609. Air traffic controller training and scheduling.
Sec. 610. FAA facility conditions.
Sec. 611. Technical correction.

                      TITLE VII--AVIATION INSURANCE

Sec. 701. General authority.
Sec. 702. Extension of authority to limit third-party liability of air 
          carriers arising out of acts of terrorism.
Sec. 703. Clarification of reinsurance authority.
Sec. 704. Use of independent claims adjusters.

                        TITLE VIII--MISCELLANEOUS

Sec. 801. Disclosure of data to Federal agencies in interest of national 
          security.
Sec. 802. FAA authority to conduct criminal history record checks.
Sec. 803. Civil penalties technical amendments.
Sec. 804. Consolidation and realignment of FAA services and facilities.
Sec. 805. Limiting access to flight decks of all-cargo aircraft.
Sec. 806. Consolidation or elimination of obsolete, redundant, or 
          otherwise unnecessary reports; use of electronic media format.
Sec. 807. Prohibition on use of certain funds.
Sec. 808. Study on aviation fuel prices.
Sec. 809. Wind turbine lighting.
Sec. 810. Air-rail code sharing study.
Sec. 811. D.C. Metropolitan Area Special Flight Rules Area.
Sec. 812. FAA review and reform.
Sec. 813. Use of mineral revenue at certain airports.
Sec. 814. Contracting.
Sec. 815. Flood planning.
Sec. 816. Historical aircraft documents.
Sec. 817. Release from restrictions.
Sec. 818. Sense of Congress.
Sec. 819. Human Intervention Motivation Study.
Sec. 820. Study of aeronautical mobile telemetry.
Sec. 821. Clarification of requirements for volunteer pilots operating 
          charitable medical flights.
Sec. 822. Pilot program for redevelopment of airport properties.
Sec. 823. Report on New York City and Newark air traffic control 
          facilities.
Sec. 824. Cylinders of compressed oxygen or other oxidizing gases.
Sec. 825. Orphan aviation earmarks.
Sec. 826. Privacy protections for air passenger screening with advanced 
          imaging technology.
Sec. 827. Commercial space launch license requirements.
Sec. 828. Air transportation of lithium cells and batteries.
Sec. 829. Clarification of memorandum of understanding with OSHA.
Sec. 830. Approval of applications for the airport security screening 
          opt-out program.

           TITLE IX--FEDERAL AVIATION RESEARCH AND DEVELOPMENT

Sec. 901. Authorization of appropriations.
Sec. 902. Definitions.
Sec. 903. Unmanned aircraft systems.
Sec. 904. Research program on runways.
Sec. 905. Research on design for certification.
Sec. 906. Airport cooperative research program.
Sec. 907. Centers of excellence.
Sec. 908. Center of excellence for aviation human resource research.
Sec. 909. Interagency research on aviation and the environment.
Sec. 910. Aviation fuel research and development program.
Sec. 911. Research program on alternative jet fuel technology for civil 
          aircraft.
Sec. 912. Review of FAA's energy-related and environment-related 
          research programs.
Sec. 913. Review of FAA's aviation safety-related research programs.
Sec. 914. Production of clean coal fuel technology for civilian 
          aircraft.
Sec. 915. Wake turbulence, volcanic ash, and weather research.
Sec. 916. Reauthorization of center of excellence in applied research 
          and training in the use of advanced materials in transport 
          aircraft.
Sec. 917. Research and development of equipment to clean and monitor the 
          engine and APU bleed air supplied on pressurized aircraft.
Sec. 918. Expert review of enterprise architecture for NextGen.
Sec. 919. Airport sustainability planning working group.

                    TITLE X--NATIONAL MEDIATION BOARD

Sec. 1001. Rulemaking authority.
Sec. 1002. Runoff election rules.
Sec. 1003. Bargaining representative certification.
Sec. 1004. Oversight.

  TITLE XI--AIRPORT AND AIRWAY TRUST FUND PROVISIONS AND RELATED TAXES

Sec. 1100. Amendment of 1986 code.
Sec. 1101. Extension of taxes funding airport and airway trust fund.
Sec. 1102. Extension of airport and airway trust fund expenditure 
          authority.
Sec. 1103. Treatment of fractional aircraft ownership programs.
Sec. 1104. Transparency in passenger tax disclosures.
Sec. 1105. Tax-exempt bond financing for fixed-wing emergency medical 
          aircraft.
Sec. 1106. Rollover of amounts received in airline carrier bankruptcy.
Sec. 1107. Termination of exemption for small jet aircraft on 
          nonestablished lines.
Sec. 1108. Modification of control definition for purposes of section 
          249.

     TITLE XII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO-ACT OF 2010

Sec. 1201. Compliance provision.

SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this 
Act an amendment or repeal is expressed in terms of an 
amendment to, or a repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of title 49, United States Code.

SEC. 3. EFFECTIVE DATE.

    Except as otherwise expressly provided, this Act and the 
amendments made by this Act shall take effect on the date of 
enactment of this Act.

                        TITLE I--AUTHORIZATIONS

                  Subtitle A--Funding of FAA Programs

SEC. 101. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY 
                    PLANNING AND PROGRAMS.

    (a) Authorization.--Section 48103 is amended to read as 
follows:

``Sec. 48103. Airport planning and development and noise compatibility 
                    planning and programs

    ``(a) In General.--There shall be available to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 to make grants for airport planning and airport 
development under section 47104, airport noise compatibility 
planning under section 47505(a)(2), and carrying out noise 
compatibility programs under section 47504(c) $3,350,000,000 
for each of fiscal years 2012 through 2015.
    ``(b) Availability of Amounts.--Amounts made available 
under subsection (a) shall remain available until expended.''.
    (b) Obligational Authority.--Section 47104(c) is amended in 
the matter preceding paragraph (1) by striking ``After'' and 
all the follows before ``the Secretary'' and inserting ``After 
September 30, 2015,''.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

    (a) Authorization of Appropriations.--Section 48101(a) is 
amended by striking paragraphs (1) through (8) and inserting 
the following:
            ``(1) $2,731,000,000 for fiscal year 2012.
            ``(2) $2,715,000,000 for fiscal year 2013.
            ``(3) $2,730,000,000 for fiscal year 2014.
            ``(4) $2,730,000,000 for fiscal year 2015.''.
    (b) Set-Asides.--Section 48101 is amended--
            (1) by striking subsections (c), (d), (e), (h), and 
        (i); and
            (2) by redesignating subsections (f) and (g) as 
        subsections (c) and (d), respectively.

SEC. 103. FAA OPERATIONS.

    (a) In General.--Section 106(k)(1) is amended by striking 
subparagraphs (A) through (H) and inserting the following:
                    ``(A) $9,653,000,000 for fiscal year 2012;
                    ``(B) $9,539,000,000 for fiscal year 2013;
                    ``(C) $9,596,000,000 for fiscal year 2014; 
                and
                    ``(D) $9,653,000,000 for fiscal year 
                2015.''.
    (b) Authorized Expenditures.--Section 106(k)(2) is 
amended--
            (1) by striking subparagraphs (A), (B), (C), and 
        (D);
            (2) by redesignating subparagraphs (E), (F), and 
        (G) as subparagraphs (A), (B), and (C), respectively; 
        and
            (3) in subparagraphs (A), (B), and (C) (as so 
        redesignated) by striking ``2004 through 2007'' and 
        inserting ``2012 through 2015''.
    (c) Authority To Transfer Funds.--Section 106(k) is amended 
by adding at the end the following:
            ``(3) Administering program within available 
        funding.--Notwithstanding any other provision of law, 
        in each of fiscal years 2012 through 2015, if the 
        Secretary determines that the funds appropriated under 
        paragraph (1) are insufficient to meet the salary, 
        operations, and maintenance expenses of the Federal 
        Aviation Administration, as authorized by this section, 
        the Secretary shall reduce nonsafety-related activities 
        of the Administration as necessary to reduce such 
        expenses to a level that can be met by the funding 
        available under paragraph (1).''.

SEC. 104. FUNDING FOR AVIATION PROGRAMS.

    (a) Airport and Airway Trust Fund Guarantee.--Section 
48114(a)(1)(A) is amended to read as follows:
                    ``(A) In general.--The total budget 
                resources made available from the Airport and 
                Airway Trust Fund each fiscal year pursuant to 
                sections 48101, 48102, 48103, and 106(k) 
                shall--
                            ``(i) in fiscal year 2013, be equal 
                        to 90 percent of the estimated level of 
                        receipts plus interest credited to the 
                        Airport and Airway Trust Fund for that 
                        fiscal year; and
                            ``(ii) in fiscal year 2014 and each 
                        fiscal year thereafter, be equal to the 
                        sum of--
                                    ``(I) 90 percent of the 
                                estimated level of receipts 
                                plus interest credited to the 
                                Airport and Airway Trust Fund 
                                for that fiscal year; and
                                    ``(II) the actual level of 
                                receipts plus interest credited 
                                to the Airport and Airway Trust 
                                Fund for the second preceding 
                                fiscal year minus the total 
                                amount made available for 
                                obligation from the Airport and 
                                Airway Trust Fund for the 
                                second preceding fiscal year.
                Such amounts may be used only for the aviation 
                investment programs listed in subsection 
                (b)(1).''.
    (b) Technical Correction.--Section 48114(a)(1)(B) is 
amended by striking ``subsection (b)'' and inserting 
``subsection (b)(1)''.
    (c) Additional Authorizations of Appropriations From the 
General Fund.--Section 48114(a)(2) is amended by striking 
``2007'' and inserting ``2015''.
    (d) Estimated Level of Receipts Plus Interest Defined.--
Section 48114(b)(2) is amended--
            (1) in the paragraph heading by striking ``Level'' 
        and inserting ``Estimated level''; and
            (2) by striking ``level of receipts plus interest'' 
        and inserting ``estimated level of receipts plus 
        interest''.
    (e) Enforcement of Guarantees.--Section 48114(c)(2) is 
amended by striking ``2007'' and inserting ``2015''.

SEC. 105. DELINEATION OF NEXT GENERATION AIR TRANSPORTATION SYSTEM 
                    PROJECTS.

    Section 44501(b) is amended--
            (1) in paragraph (3) by striking ``and'' after the 
        semicolon;
            (2) in paragraph (4)(B) by striking ``defense.'' 
        and inserting ``defense; and''; and
            (3) by adding at the end the following:
            ``(5) a list of capital projects that are part of 
        the Next Generation Air Transportation System and 
        funded by amounts appropriated under section 
        48101(a).''.

                 Subtitle B--Passenger Facility Charges

SEC. 111. PASSENGER FACILITY CHARGES.

    (a) PFC Defined.--Section 40117(a)(5) is amended to read as 
follows:
            ``(5) Passenger facility charge.--The term 
        `passenger facility charge' means a charge or fee 
        imposed under this section.''.
    (b) Pilot Program for PFC Authorizations at Nonhub 
Airports.--Section 40117(l) is amended--
            (1) by striking paragraph (7); and
            (2) by redesignating paragraph (8) as paragraph 
        (7).
    (c) Correction of References.--
            (1) Section 40117.--Section 40117 is amended--
                    (A) in the section heading by striking 
                ``fees'' and inserting ``charges'';
                    (B) in the heading for subsection (e) by 
                striking ``Fees'' and inserting ``Charges'';
                    (C) in the heading for subsection (l) by 
                striking ``Fee'' and inserting ``Charge'';
                    (D) in the heading for paragraph (5) of 
                subsection (l) by striking ``fee'' and 
                inserting ``charge'';
                    (E) in the heading for subsection (m) by 
                striking ``Fees'' and inserting ``Charges'';
                    (F) in the heading for paragraph (1) of 
                subsection (m) by striking ``fees'' and 
                inserting ``charges'';
                    (G) by striking ``fee'' each place it 
                appears (other than the second sentence of 
                subsection (g)(4)) and inserting ``charge''; 
                and
                    (H) by striking ``fees'' each place it 
                appears and inserting ``charges''.
            (2) Other references.--
                    (A) Subtitle VII is amended by striking 
                ``fee'' and inserting ``charge'' each place it 
                appears in each of the following sections:
                            (i) Section 47106(f)(1).
                            (ii) Section 47110(e)(5).
                            (iii) Section 47114(f).
                            (iv) Section 47134(g)(1).
                            (v) Section 47139(b).
                            (vi) Section 47521.
                            (vii) Section 47524(e).
                            (viii) Section 47526(2).
                    (B) Section 47521(5) is amended by striking 
                ``fees'' and inserting ``charges''.
            (3) Clerical amendment.--The analysis for chapter 
        401 is amended by striking the item relating to section 
        40117 and inserting the following:

``40117. Passenger facility charges.''.

SEC. 112. GAO STUDY OF ALTERNATIVE MEANS OF COLLECTING PFCS.

    (a) In General.--The Comptroller General of the United 
States shall conduct a study of alternative means of collecting 
passenger facility charges imposed under section 40117 of title 
49, United States Code, that would permit such charges to be 
collected without being included in the ticket price. In 
conducting the study, the Comptroller General shall consider, 
at a minimum--
            (1) collection options for arriving, connecting, 
        and departing passengers at airports;
            (2) cost sharing or allocation methods based on 
        passenger travel to address connecting traffic; and
            (3) examples of airport charges collected by 
        domestic and international airports that are not 
        included in ticket prices.
    (b) Report.--Not later than 1 year after the date of 
enactment of this Act, the Comptroller General 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 the study, 
including the Comptroller General's findings, conclusions, and 
recommendations.

SEC. 113. QUALIFICATIONS-BASED SELECTION.

    It is the sense of Congress that airports should consider 
the use of qualifications-based selection in carrying out 
capital improvement projects funded using passenger facility 
charges collected under section 40117 of title 49, United 
States Code, with the goal of serving the needs of all 
stakeholders.

                   Subtitle C--Fees for FAA Services

SEC. 121. UPDATE ON OVERFLIGHTS.

    (a) Establishment and Adjustment of Fees.--Section 45301(b) 
is amended to read as follows:
    ``(b) Establishment and Adjustment of Fees.--
            ``(1) In general.--In establishing and adjusting 
        fees under this section, the Administrator shall ensure 
        that the fees are reasonably related to the 
        Administration's costs, as determined by the 
        Administrator, of providing the services rendered.
            ``(2) Services for which costs may be recovered.--
        Services for which costs may be recovered under this 
        section include the costs of air traffic control, 
        navigation, weather services, training, and emergency 
        services that are available to facilitate safe 
        transportation over the United States and the costs of 
        other services provided by the Administrator, or by 
        programs financed by the Administrator, to flights that 
        neither take off nor land in the United States.
            ``(3) Limitations on judicial review.--
        Notwithstanding section 702 of title 5 or any other 
        provision of law, the following actions and other 
        matters shall not be subject to judicial review:
                    ``(A) The establishment or adjustment of a 
                fee by the Administrator under this section.
                    ``(B) The validity of a determination of 
                costs by the Administrator under paragraph (1), 
                and the processes and procedures applied by the 
                Administrator when reaching such determination.
                    ``(C) An allocation of costs by the 
                Administrator under paragraph (1) to services 
                provided, and the processes and procedures 
                applied by the Administrator when establishing 
                such allocation.
            ``(4) Aircraft altitude.--Nothing in this section 
        shall require the Administrator to take into account 
        aircraft altitude in establishing any fee for aircraft 
        operations in en route or oceanic airspace.
            ``(5) Costs defined.--In this subsection, the term 
        `costs' includes operation and maintenance costs, 
        leasing costs, and overhead expenses associated with 
        the services provided and the facilities and equipment 
        used in providing such services.''.
    (b) Adjustment of Fees.--Section 45301 is amended by adding 
at the end the following:
    ``(e) Adjustment of Fees.--In addition to adjustments under 
subsection (b), the Administrator may periodically adjust the 
fees established under this section.''.

SEC. 122. REGISTRATION FEES.

    (a) In General.--Chapter 453 is amended by adding at the 
end the following:

``Sec. 45305. Registration, certification, and related fees

    ``(a) General Authority and Fees.--Subject to subsection 
(b), the Administrator of the Federal Aviation Administration 
shall establish and collect a fee for each of the following 
services and activities of the Administration that does not 
exceed the estimated costs of the service or activity:
            ``(1) Registering an aircraft.
            ``(2) Reregistering, replacing, or renewing an 
        aircraft registration certificate.
            ``(3) Issuing an original dealer's aircraft 
        registration certificate.
            ``(4) Issuing an additional dealer's aircraft 
        registration certificate (other than the original).
            ``(5) Issuing a special registration number.
            ``(6) Issuing a renewal of a special registration 
        number reservation.
            ``(7) Recording a security interest in an aircraft 
        or aircraft part.
            ``(8) Issuing an airman certificate.
            ``(9) Issuing a replacement airman certificate.
            ``(10) Issuing an airman medical certificate.
            ``(11) Providing a legal opinion pertaining to 
        aircraft registration or recordation.
    ``(b) Limitation on Collection.--No fee may be collected 
under this section unless the expenditure of the fee to pay the 
costs of activities and services for which the fee is imposed 
is provided for in advance in an appropriations Act.
    ``(c) Fees Credited as Offsetting Collections.--
            ``(1) In general.--Notwithstanding section 3302 of 
        title 31, any fee authorized to be collected under this 
        section shall--
                    ``(A) be credited as offsetting collections 
                to the account that finances the activities and 
                services for which the fee is imposed;
                    ``(B) be available for expenditure only to 
                pay the costs of activities and services for 
                which the fee is imposed, including all costs 
                associated with collecting the fee; and
                    ``(C) remain available until expended.
            ``(2) Continuing appropriations.--The Administrator 
        may continue to assess, collect, and spend fees 
        established under this section during any period in 
        which the funding for the Federal Aviation 
        Administration is provided under an Act providing 
        continuing appropriations in lieu of the 
        Administration's regular appropriations.
            ``(3) Adjustments.--The Administrator shall adjust 
        a fee established under subsection (a) for a service or 
        activity if the Administrator determines that the 
        actual cost of the service or activity is higher or 
        lower than was indicated by the cost data used to 
        establish such fee.''.
    (b) Clerical Amendment.--The analysis for chapter 453 is 
amended by adding at the end the following:

``45305. Registration, certification, and related fees.''.

    (c) Fees Involving Aircraft Not Providing Air 
Transportation.--Section 45302(e) is amended--
            (1) by striking ``A fee'' and inserting the 
        following:
            ``(1) In general.--A fee''; and
            (2) by adding at the end the following:
            ``(2) Effect of imposition of other fees.--A fee 
        may not be imposed for a service or activity under this 
        section during any period in which a fee for the same 
        service or activity is imposed under section 45305.''.

         Subtitle D--Airport Improvement Program Modifications

SEC. 131. AIRPORT MASTER PLANS.

    Section 47101(g)(2) is amended--
            (1) in subparagraph (B) by striking ``and'' at the 
        end;
            (2) by redesignating subparagraph (C) as 
        subparagraph (D); and
            (3) by inserting after subparagraph (B) the 
        following:
                    ``(C) consider passenger convenience, 
                airport ground access, and access to airport 
                facilities; and''.

SEC. 132. AIP DEFINITIONS.

    (a) Airport Development.--Section 47102(3) is amended--
            (1) in subparagraph (B)(iv) by striking ``20'' and 
        inserting ``9'';
            (2) in subparagraph (G) by inserting ``and 
        including acquiring glycol recovery vehicles,'' after 
        ``aircraft,''; and
            (3) by adding at the end the following:
                    ``(M) construction of mobile refueler 
                parking within a fuel farm at a nonprimary 
                airport meeting the requirements of section 
                112.8 of title 40, Code of Federal Regulations.
                    ``(N) terminal development under section 
                47119(a).
                    ``(O) acquiring and installing facilities 
                and equipment to provide air conditioning, 
                heating, or electric power from terminal-based, 
                nonexclusive use facilities to aircraft parked 
                at a public use airport for the purpose of 
                reducing energy use or harmful emissions as 
                compared to the provision of such air 
                conditioning, heating, or electric power from 
                aircraft-based systems.''.
    (b) Airport Planning.--Section 47102(5) is amended to read 
as follows:
            ``(5) `airport planning' means planning as defined 
        by regulations the Secretary prescribes and includes--
                    ``(A) integrated airport system planning;
                    ``(B) developing an environmental 
                management system; and
                    ``(C) developing a plan for recycling and 
                minimizing the generation of airport solid 
                waste, consistent with applicable State and 
                local recycling laws, including the cost of a 
                waste audit.''.
    (c) General Aviation Airport.--Section 47102 is amended--
            (1) by redesignating paragraphs (23) through (25) 
        as paragraphs (25) through (27), respectively;
            (2) by redesignating paragraphs (8) through (22) as 
        paragraphs (9) through (23), respectively; and
            (3) by inserting after paragraph (7) the following:
            ``(8) `general aviation airport' means a public 
        airport that is located in a State and that, as 
        determined by the Secretary--
                    ``(A) does not have scheduled service; or
                    ``(B) has scheduled service with less than 
                2,500 passenger boardings each year.''.
    (d) Revenue Producing Aeronautical Support Facilities.--
Section 47102 is amended by inserting after paragraph (23) (as 
redesignated by subsection (c)(2) of this section) the 
following:
            ``(24) `revenue producing aeronautical support 
        facilities' means fuel farms, hangar buildings, self-
        service credit card aeronautical fueling systems, 
        airplane wash racks, major rehabilitation of a hangar 
        owned by a sponsor, or other aeronautical support 
        facilities that the Secretary determines will increase 
        the revenue producing ability of the airport.''.
    (e) Terminal Development.--Section 47102 (as amended by 
subsection (c) of this section) is further amended by adding at 
the end the following:
            ``(28) `terminal development' means--
                    ``(A) development of--
                            ``(i) an airport passenger terminal 
                        building, including terminal gates;
                            ``(ii) access roads servicing 
                        exclusively airport traffic that leads 
                        directly to or from an airport 
                        passenger terminal building; and
                            ``(iii) walkways that lead directly 
                        to or from an airport passenger 
                        terminal building; and
                    ``(B) the cost of a vehicle described in 
                section 47119(a)(1)(B).''.

SEC. 133. RECYCLING PLANS FOR AIRPORTS.

    Section 47106(a) is amended--
            (1) in paragraph (4) by striking ``and'' at the 
        end;
            (2) in paragraph (5) by striking ``proposed.'' and 
        inserting ``proposed; and''; and
            (3) by adding at the end the following:
            ``(6) if the project is for an airport that has an 
        airport master plan, the master plan addresses issues 
        relating to solid waste recycling at the airport, 
        including--
                    ``(A) the feasibility of solid waste 
                recycling at the airport;
                    ``(B) minimizing the generation of solid 
                waste at the airport;
                    ``(C) operation and maintenance 
                requirements;
                    ``(D) the review of waste management 
                contracts; and
                    ``(E) the potential for cost savings or the 
                generation of revenue.''.

SEC. 134. CONTENTS OF COMPETITION PLANS.

    Section 47106(f)(2) is amended--
            (1) by striking ``patterns of air service,'';
            (2) by inserting ``and'' before ``whether''; and
            (3) by striking ``, and airfare levels'' and all 
        that follows before the period.

SEC. 135. GRANT ASSURANCES.

    (a) General Written Assurances.--Section 
47107(a)(16)(D)(ii) is amended by inserting before the 
semicolon at the end the following: ``, except in the case of a 
relocation or replacement of an existing airport facility that 
meets the conditions of section 47110(d)''.
    (b) Written Assurances on Acquiring Land.--
            (1) Use of proceeds.--Section 47107(c)(2) is 
        amended--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause 
                        (i) by striking ``purpose--'' and 
                        inserting ``purpose (including land 
                        serving as a noise buffer either by 
                        being undeveloped or developed in a way 
                        that is compatible with using the land 
                        for noise buffering purposes)--'';
                            (ii) in clause (iii) by striking 
                        ``paid to the Secretary'' and all that 
                        follows before the semicolon and 
                        inserting ``reinvested in another 
                        project at the airport or transferred 
                        to another airport as the Secretary 
                        prescribes under paragraph (4)''; and
                    (B) in subparagraph (B)(iii) by striking 
                ``reinvested, on application'' and all that 
                follows before the period at the end and 
                inserting ``reinvested in another project at 
                the airport or transferred to another airport 
                as the Secretary prescribes under paragraph 
                (4)''.
            (2) Eligible projects.--Section 47107(c) is amended 
        by adding at the end the following:
    ``(4) In approving the reinvestment or transfer of proceeds 
under paragraph (2)(A)(iii) or (2)(B)(iii), the Secretary shall 
give preference, in descending order, to the following actions:
            ``(A) Reinvestment in an approved noise 
        compatibility project.
            ``(B) Reinvestment in an approved project that is 
        eligible for funding under section 47117(e).
            ``(C) Reinvestment in an approved airport 
        development project that is eligible for funding under 
        section 47114, 47115, or 47117.
            ``(D) Transfer to a sponsor of another public 
        airport to be reinvested in an approved noise 
        compatibility project at that airport.
            ``(E) Payment to the Secretary for deposit in the 
        Airport and Airway Trust Fund established under section 
        9502 of the Internal Revenue Code of 1986.
    ``(5)(A) A lease at fair market value by an airport owner 
or operator of land acquired for a noise compatibility purpose 
using a grant provided under this subchapter shall not be 
considered a disposal for purposes of paragraph (2).
    ``(B) The airport owner or operator may use revenues from a 
lease described in subparagraph (A) for an approved airport 
development project that is eligible for funding under section 
47114, 47115, or 47117.
    ``(C) The Secretary shall coordinate with each airport 
owner or operator to ensure that leases described in 
subparagraph (A) are consistent with noise buffering purposes.
    ``(D) The provisions of this paragraph apply to all land 
acquired before, on, or after the date of enactment of this 
paragraph.''.

SEC. 136. AGREEMENTS GRANTING THROUGH-THE-FENCE ACCESS TO GENERAL 
                    AVIATION AIRPORTS.

    (a) In General.--Section 47107 is amended by adding at the 
end the following:
    ``(t) Agreements Granting Through-The-Fence Access to 
General Aviation Airports.--
            ``(1) In general.--Subject to paragraph (2), a 
        sponsor of a general aviation airport shall not be 
        considered to be in violation of this subtitle, or to 
        be in violation of a grant assurance made under this 
        section or under any other provision of law as a 
        condition for the receipt of Federal financial 
        assistance for airport development, solely because the 
        sponsor enters into an agreement that grants to a 
        person that owns residential real property adjacent to 
        or near the airport access to the airfield of the 
        airport for the following:
                    ``(A) Aircraft of the person.
                    ``(B) Aircraft authorized by the person.
            ``(2) Through-the-fence agreements.--
                    ``(A) In general.--An agreement described 
                in paragraph (1) between an airport sponsor and 
                a property owner (or an association 
                representing such property owner) shall be a 
                written agreement that prescribes the rights, 
                responsibilities, charges, duration, and other 
                terms the airport sponsor determines are 
                necessary to establish and manage the airport 
                sponsor's relationship with the property owner.
                    ``(B) Terms and conditions.--An agreement 
                described in paragraph (1) between an airport 
                sponsor and a property owner (or an association 
                representing such property owner) shall require 
                the property owner, at minimum--
                            ``(i) to pay airport access charges 
                        that, as determined by the airport 
                        sponsor, are comparable to those 
                        charged to tenants and operators on-
                        airport making similar use of the 
                        airport;
                            ``(ii) to bear the cost of building 
                        and maintaining the infrastructure 
                        that, as determined by the airport 
                        sponsor, is necessary to provide 
                        aircraft located on the property 
                        adjacent to or near the airport access 
                        to the airfield of the airport;
                            ``(iii) to maintain the property 
                        for residential, noncommercial use for 
                        the duration of the agreement;
                            ``(iv) to prohibit access to the 
                        airport from other properties through 
                        the property of the property owner; and
                            ``(v) to prohibit any aircraft 
                        refueling from occurring on the 
                        property.''.
    (b) Applicability.--The amendment made by subsection (a) 
shall apply to an agreement between an airport sponsor and a 
property owner (or an association representing such property 
owner) entered into before, on, or after the date of enactment 
of this Act.

SEC. 137. GOVERNMENT SHARE OF PROJECT COSTS.

    Section 47109 is amended--
            (1) in subsection (a) by striking ``provided in 
        subsection (b) or subsection (c) of this section'' and 
        inserting ``otherwise provided in this section''; and
            (2) by adding at the end the following:
    ``(e) Special Rule for Transition From Small Hub to Medium 
Hub Status.--If the status of a small hub airport changes to a 
medium hub airport, the Government's share of allowable project 
costs for the airport may not exceed 90 percent for the first 2 
fiscal years after such change in hub status.
    ``(f) Special Rule for Economically Distressed 
Communities.--The Government's share of allowable project costs 
shall be 95 percent for a project at an airport that--
            ``(1) is receiving essential air service for which 
        compensation was provided to an air carrier under 
        subchapter II of chapter 417; and
            ``(2) is located in an area that meets one or more 
        of the criteria established in section 301(a) of the 
        Public Works and Economic Development Act of 1965 (42 
        U.S.C. 3161(a)), as determined by the Secretary of 
        Commerce.''.

SEC. 138. ALLOWABLE PROJECT COSTS.

    (a) Allowable Project Costs.--Section 47110(b)(2)(D) is 
amended to read as follows:
            ``(D) if the cost is for airport development and is 
        incurred before execution of the grant agreement, but 
        in the same fiscal year as execution of the grant 
        agreement, and if--
                    ``(i) the cost was incurred before 
                execution of the grant agreement because the 
                airport has a shortened construction season due 
                to climactic conditions in the vicinity of the 
                airport;
                    ``(ii) the cost is in accordance with an 
                airport layout plan approved by the Secretary 
                and with all statutory and administrative 
                requirements that would have been applicable to 
                the project if the project had been carried out 
                after execution of the grant agreement, 
                including submission of a complete grant 
                application to the appropriate regional or 
                district office of the Federal Aviation 
                Administration;
                    ``(iii) the sponsor notifies the Secretary 
                before authorizing work to commence on the 
                project;
                    ``(iv) the sponsor has an alternative 
                funding source available to fund the project; 
                and
                    ``(v) the sponsor's decision to proceed 
                with the project in advance of execution of the 
                grant agreement does not affect the priority 
                assigned to the project by the Secretary for 
                the allocation of discretionary funds;''.
    (b) Inclusion of Measures to Improve Efficiency of Airport 
Buildings in Airport Improvement Projects.--Section 47110(b) is 
amended--
            (1) in paragraph (5) by striking ``; and'' and 
        inserting a semicolon;
            (2) in paragraph (6) by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) if the cost is incurred on a measure to 
        improve the efficiency of an airport building (such as 
        a measure designed to meet one or more of the criteria 
        for being considered a high-performance green building 
        as set forth under section 401(13) of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 
        17061(13))) and--
                    ``(A) the measure is for a project for 
                airport development;
                    ``(B) the measure is for an airport 
                building that is otherwise eligible for 
                construction assistance under this subchapter; 
                and
                    ``(C) if the measure results in an increase 
                in initial project costs, the increase is 
                justified by expected savings over the life 
                cycle of the project.''.
    (c) Relocation of Airport-Owned Facilities.--Section 
47110(d) is amended to read as follows:
    ``(d) Relocation of Airport-Owned Facilities.--The 
Secretary may determine that the costs of relocating or 
replacing an airport-owned facility are allowable for an 
airport development project at an airport only if--
            ``(1) the Government's share of such costs will be 
        paid with funds apportioned to the airport sponsor 
        under section 47114(c)(1) or 47114(d);
            ``(2) the Secretary determines that the relocation 
        or replacement is required due to a change in the 
        Secretary's design standards; and
            ``(3) the Secretary determines that the change is 
        beyond the control of the airport sponsor.''.
    (d) Nonprimary Airports.--Section 47110(h) is amended--
            (1) by inserting ``construction'' before ``costs of 
        revenue producing''; and
            (2) by striking ``, including fuel farms and 
        hangars,''.
    (e) Bird-Detecting Radar Systems.--Section 47110 is amended 
by adding at the end the following:
    ``(i) Bird-Detecting Radar Systems.--The Administrator of 
the Federal Aviation Administration, upon the conclusion of all 
planned research by the Administration regarding avian radar 
systems, shall--
            ``(1) update Advisory Circular No. 150/5220-25 to 
        specify which systems have been studied; and
            ``(2) within 180 days after such research is 
        concluded, issue a final report on the use of avian 
        radar systems in the national airspace system.''.

SEC. 139. VETERANS' PREFERENCE.

    Section 47112(c) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B) by striking 
                ``separated from'' and inserting ``discharged 
                or released from active duty in''; and
                    (B) by adding at the end the following:
            ``(C) `Afghanistan-Iraq war veteran' means an 
        individual who served on active duty (as defined in 
        section 101 of title 38) in the armed forces in support 
        of Operation Enduring Freedom, Operation Iraqi Freedom, 
        or Operation New Dawn for more than 180 consecutive 
        days, any part of which occurred after September 11, 
        2001, and before the date prescribed by presidential 
        proclamation or by law as the last day of Operation 
        Enduring Freedom, Operation Iraqi Freedom, or Operation 
        New Dawn (whichever is later), and who was discharged 
        or released from active duty in the armed forces under 
        honorable conditions.
            ``(D) `Persian Gulf veteran' means an individual 
        who served on active duty in the armed forces in the 
        Southwest Asia theater of operations during the Persian 
        Gulf War for more than 180 consecutive days, any part 
        of which occurred after August 2, 1990, and before the 
        date prescribed by presidential proclamation or by law, 
        and who was discharged or released from active duty in 
        the armed forces under honorable conditions.''; and
            (2) in paragraph (2) by striking ``Vietnam-era 
        veterans and disabled veterans'' and inserting 
        ``Vietnam-era veterans, Persian Gulf veterans, 
        Afghanistan-Iraq war veterans, disabled veterans, and 
        small business concerns (as defined in section 3 of the 
        Small Business Act (15 U.S.C. 632)) owned and 
        controlled by disabled veterans''.

SEC. 140. MINORITY AND DISADVANTAGED BUSINESS PARTICIPATION.

    (a) Findings.--Congress finds the following:
            (1) While significant progress has occurred due to 
        the establishment of the airport disadvantaged business 
        enterprise program (49 U.S.C. 47107(e) and 47113), 
        discrimination and related barriers continue to pose 
        significant obstacles for minority- and women-owned 
        businesses seeking to do business in airport-related 
        markets across the Nation. These continuing barriers 
        merit the continuation of the airport disadvantaged 
        business enterprise program.
            (2) Congress has received and reviewed testimony 
        and documentation of race and gender discrimination 
        from numerous sources, including congressional hearings 
        and roundtables, scientific reports, reports issued by 
        public and private agencies, news stories, reports of 
        discrimination by organizations and individuals, and 
        discrimination lawsuits. This testimony and 
        documentation shows that race- and gender-neutral 
        efforts alone are insufficient to address the problem.
            (3) This testimony and documentation demonstrates 
        that discrimination across the Nation poses a barrier 
        to full and fair participation in airport-related 
        businesses of women business owners and minority 
        business owners in the racial groups detailed in parts 
        23 and 26 of title 49, Code of Federal Regulations, and 
        has impacted firm development and many aspects of 
        airport-related business in the public and private 
        markets.
            (4) This testimony and documentation provides a 
        strong basis that there is a compelling need for the 
        continuation of the airport disadvantaged business 
        enterprise program and the airport concessions 
        disadvantaged business enterprise program to address 
        race and gender discrimination in airport-related 
        business.
    (b) Standardizing Certification of Disadvantaged Business 
Enterprises.--Section 47113 is amended by adding at the end the 
following:
    ``(e) Mandatory Training Program.--
            ``(1) In general.--Not later than 1 year after the 
        date of enactment of this subsection, the Secretary 
        shall establish a mandatory training program for 
        persons described in paragraph (3) to provide 
        streamlined training on certifying whether a small 
        business concern qualifies as a small business concern 
        owned and controlled by socially and economically 
        disadvantaged individuals under this section and 
        section 47107(e).
            ``(2) Implementation.--The training program may be 
        implemented by one or more private entities approved by 
        the Secretary.
            ``(3) Participants.--A person referred to in 
        paragraph (1) is an official or agent of an airport 
        sponsor--
                    ``(A) who is required to provide a written 
                assurance under this section or section 
                47107(e) that the airport owner or operator 
                will meet the percentage goal of subsection (b) 
                of this section or section 47107(e)(1), as the 
                case may be; or
                    ``(B) who is responsible for determining 
                whether or not a small business concern 
                qualifies as a small business concern owned and 
                controlled by socially and economically 
                disadvantaged individuals under this section or 
                section 47107(e).''.
    (c) Inspector General Report on Participation in FAA 
Programs by Disadvantaged Small Business Concerns.--
            (1) In general.--For each of fiscal years 2013 
        through 2015, the Inspector General of the Department 
        of Transportation shall submit to Congress a report on 
        the number of new small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, including those owned by veterans, that 
        participated in the programs and activities funded 
        using the amounts made available under this Act.
            (2) New small business concerns.--For purposes of 
        subsection (a), a new small business concern is a small 
        business concern that did not participate in the 
        programs and activities described in subsection (a) in 
        a previous fiscal year.
            (3) Contents.--The report shall include--
                    (A) a list of the top 25 and bottom 25 
                large and medium hub airports in terms of 
                providing opportunities for small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals to 
                participate in the programs and activities 
                funded using the amounts made available under 
                this Act;
                    (B) the results of an assessment, to be 
                conducted by the Inspector General, on the 
                reasons why the top airports have been 
                successful in providing such opportunities; and
                    (C) recommendations to the Administrator of 
                the Federal Aviation Administration and 
                Congress on methods for other airports to 
                achieve results similar to those of the top 
                airports.

SEC. 141. SPECIAL APPORTIONMENT RULES.

    (a) Eligibility To Receive Primary Airport Minimum 
Apportionment Amount.--Section 47114(d) is amended by adding at 
the end the following:
            ``(7) Eligibility to receive primary airport 
        minimum apportionment amount.--Notwithstanding any 
        other provision of this subsection, the Secretary may 
        apportion to an airport sponsor in a fiscal year an 
        amount equal to the minimum apportionment available 
        under subsection (c)(1)(B) if the Secretary finds that 
        the airport--
                    ``(A) received scheduled or unscheduled air 
                service from a large certificated air carrier 
                (as defined in part 241 of title 14, Code of 
                Federal Regulations, or such other regulations 
                as may be issued by the Secretary under the 
                authority of section 41709) in the calendar 
                year used to calculate the apportionment; and
                    ``(B) had more than 10,000 passenger 
                boardings in the calendar year used to 
                calculate the apportionment.''.
    (b) Special Rule for Fiscal Years 2012 and 2013.--Section 
47114(c)(1) is amended--
            (1) by striking subparagraphs (F) and (G); and
            (2) by inserting after subparagraph (E) the 
        following:
                    ``(F) Special rule for fiscal years 2012 
                and 2013.--Notwithstanding subparagraph (A), 
                for an airport that had more than 10,000 
                passenger boardings and scheduled passenger 
                aircraft service in calendar year 2007, but in 
                either calendar year 2009 or 2010, or in both 
                years, the number of passenger boardings 
                decreased to a level below 10,000 boardings per 
                year at such airport, the Secretary may 
                apportion in each of fiscal years 2012 and 2013 
                to the sponsor of such airport an amount equal 
                to the amount apportioned to that sponsor in 
                fiscal year 2009.''.

SEC. 142. UNITED STATES TERRITORIES MINIMUM GUARANTEE.

    Section 47114 is amended by adding at the end the 
following:
    ``(g) Supplemental Apportionment for Puerto Rico and United 
States Territories.--The Secretary shall apportion amounts for 
airports in Puerto Rico and all other United States territories 
in accordance with this section. This subsection does not 
prohibit the Secretary from making project grants for airports 
in Puerto Rico or other United States territories from the 
discretionary fund under section 47115.''.

SEC. 143. REDUCING APPORTIONMENTS.

    Section 47114(f)(1) is amended by striking subparagraphs 
(A) and (B) and inserting the following:
                    ``(A) in the case of a charge of $3.00 or 
                less--
                            ``(i) except as provided in clause 
                        (ii), 50 percent of the projected 
                        revenues from the charge in the fiscal 
                        year but not by more than 50 percent of 
                        the amount that otherwise would be 
                        apportioned under this section; or
                            ``(ii) with respect to an airport 
                        in Hawaii, 50 percent of the projected 
                        revenues from the charge in the fiscal 
                        year but not by more than 50 percent of 
                        the excess of--
                                    ``(I) the amount that 
                                otherwise would be apportioned 
                                under this section; over
                                    ``(II) the amount equal to 
                                the amount specified in 
                                subclause (I) multiplied by the 
                                percentage of the total 
                                passenger boardings at the 
                                applicable airport that are 
                                comprised of interisland 
                                passengers; and
                    ``(B) in the case of a charge of more than 
                $3.00--
                            ``(i) except as provided in clause 
                        (ii), 75 percent of the projected 
                        revenues from the charge in the fiscal 
                        year but not by more than 75 percent of 
                        the amount that otherwise would be 
                        apportioned under this section; or
                            ``(ii) with respect to an airport 
                        in Hawaii, 75 percent of the projected 
                        revenues from the charge in the fiscal 
                        year but not by more than 75 percent of 
                        the excess of--
                                    ``(I) the amount that 
                                otherwise would be apportioned 
                                under this section; over
                                    ``(II) the amount equal to 
                                the amount specified in 
                                subclause (I) multiplied by the 
                                percentage of the total 
                                passenger boardings at the 
                                applicable airport that are 
                                comprised of interisland 
                                passengers.''.

SEC. 144. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

    Section 47115(j) is amended by striking ``For fiscal 
years'' and all that follows before ``the sponsors'' and 
inserting ``For fiscal years 2012 through 2015,''.

SEC. 145. USE OF APPORTIONED AMOUNTS.

    Section 47117(e)(1)(A) is amended--
            (1) by striking ``35 percent'' in the first 
        sentence and inserting ``35 percent, but not more than 
        $300,000,000,'';
            (2) by striking ``and'' after ``47141,'';
            (3) by striking ``et seq.).'' and inserting ``et 
        seq.), and for water quality mitigation projects to 
        comply with the Act of June 30, 1948 (33 U.S.C. 1251 et 
        seq.), approved in an environmental record of decision 
        for an airport development project under this title.''; 
        and
            (4) by striking ``such 35 percent requirement is'' 
        in the second sentence and inserting ``the requirements 
        of the preceding sentence are''.

SEC. 146. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

    (a) Considerations.--Section 47118(c) is amended--
            (1) in paragraph (1) by striking ``or'' after the 
        semicolon;
            (2) in paragraph (2) by striking ``delays.'' and 
        inserting ``delays; or''; and
            (3) by adding at the end the following:
            ``(3) preserve or enhance minimum airfield 
        infrastructure facilities at former military airports 
        to support emergency diversionary operations for 
        transoceanic flights in locations--
                    ``(A) within United States jurisdiction or 
                control; and
                    ``(B) where there is a demonstrable lack of 
                diversionary airports within the distance or 
                flight-time required by regulations governing 
                transoceanic flights.''.
    (b) Designation of General Aviation Airports.--Section 
47118(g) is amended--
            (1) in the subsection heading by striking 
        ``Airport'' and inserting ``Airports''; and
            (2) by striking ``one of the airports bearing a 
        designation under subsection (a) may be a general 
        aviation airport that was a former military 
        installation'' and inserting ``3 of the airports 
        bearing designations under subsection (a) may be 
        general aviation airports that were former military 
        installations''.
    (c) Safety-Critical Airports.--Section 47118 is amended by 
adding at the end the following:
    ``(h) Safety-Critical Airports.--Notwithstanding any other 
provision of this chapter, a grant under section 47117(e)(1)(B) 
may be made for a federally owned airport designated under 
subsection (a) if the grant is for a project that is--
            ``(1) to preserve or enhance minimum airfield 
        infrastructure facilities described in subsection 
        (c)(3); and
            ``(2) necessary to meet the minimum safety and 
        emergency operational requirements established under 
        part 139 of title 14, Code of Federal Regulations.''.

SEC. 147. CONTRACT TOWER PROGRAM.

    (a) Cost-Benefit Requirement.--Section 47124(b) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1) The Secretary'' and 
                inserting the following:
            ``(1) Contract tower program.--
                    ``(A) Continuation.--The Secretary''; and
                    (B) by adding at the end the following:
                    ``(B) Special rule.--If the Secretary 
                determines that a tower already operating under 
                the program continued under this paragraph has 
                a benefit-to-cost ratio of less than 1.0, the 
                airport sponsor or State or local government 
                having jurisdiction over the airport shall not 
                be required to pay the portion of the costs 
                that exceeds the benefit for a period of 18 
                months after such determination is made.
                    ``(C) Use of excess funds.--If the 
                Secretary finds that all or part of an amount 
                made available to carry out the program 
                continued under this paragraph is not required 
                during a fiscal year, the Secretary may use, 
                during such fiscal year, the amount not so 
                required to carry out the program established 
                under paragraph (3).''; and
            (2) in paragraph (2) by striking ``(2) The 
        Secretary'' and inserting the following:
            ``(2) General authority.--The Secretary''.
    (b) Funding; Use of Excess Funds.--Section 47124(b)(3) is 
amended by striking subparagraph (E) and inserting the 
following:
                    ``(E) Funding.--Of the amounts appropriated 
                pursuant to section 106(k)(1), not more than 
                $10,350,000 for each of fiscal years 2012 
                through 2015 may be used to carry out this 
                paragraph.
                    ``(F) Use of excess funds.--If the 
                Secretary finds that all or part of an amount 
                made available under this paragraph is not 
                required during a fiscal year, the Secretary 
                may use, during such fiscal year, the amount 
                not so required to carry out the program 
                continued under paragraph (1).''.
    (c) Federal Share.--Section 47124(b)(4)(C) is amended by 
striking ``$1,500,000'' and inserting ``$2,000,000''.
    (d) Safety Audits.--Section 47124 is amended by adding at 
the end the following:
    ``(c) Safety Audits.--The Secretary shall establish uniform 
standards and requirements for regular safety assessments of 
air traffic control towers that receive funding under this 
section.''.

SEC. 148. RESOLUTION OF DISPUTES CONCERNING AIRPORT FEES.

    (a) In General.--Section 47129 is amended--
            (1) by striking the section heading and inserting 
        the following:

``Sec. 47129. Resolution of disputes concerning airport fees'';

            (2) by inserting ``and Foreign Air Carrier'' after 
        ``Carrier'' in the heading for subsection (d);
            (3) by inserting ``and foreign air carrier'' after 
        ``carrier'' in the heading for subsection (d)(2);
            (4) by striking ``air carrier'' each place it 
        appears and inserting ``air carrier or foreign air 
        carrier'';
            (5) by striking ``air carrier's'' each place it 
        appears and inserting ``air carrier's or foreign air 
        carrier's'';
            (6) by striking ``air carriers'' and inserting 
        ``air carriers or foreign air carriers''; and
            (7) by striking ``(as defined in section 40102 of 
        this title)'' in subsection (a) and inserting ``(as 
        those terms are defined in section 40102)''.
    (b) Conforming Amendment.--The analysis for chapter 471 is 
amended by striking the item relating to section 47129 and 
inserting the following:

``47129. Resolution of disputes concerning airport fees.''.

SEC. 149. SALE OF PRIVATE AIRPORTS TO PUBLIC SPONSORS.

    (a) In General.--Section 47133(b) is amended--
            (1) by striking ``Subsection (a) shall not apply 
        if'' and inserting the following:
            ``(1) Prior laws and agreements.--Subsection (a) 
        shall not apply if''; and
            (2) by adding at the end the following:
            ``(2) Sale of private airport to public sponsor.--
        In the case of a privately owned airport, subsection 
        (a) shall not apply to the proceeds from the sale of 
        the airport to a public sponsor if--
                    ``(A) the sale is approved by the 
                Secretary;
                    ``(B) funding is provided under this 
                subchapter for any portion of the public 
                sponsor's acquisition of airport land; and
                    ``(C) an amount equal to the remaining 
                unamortized portion of any airport improvement 
                grant made to that airport for purposes other 
                than land acquisition, amortized over a 20-year 
                period, plus an amount equal to the Federal 
                share of the current fair market value of any 
                land acquired with an airport improvement grant 
                made to that airport on or after October 1, 
                1996, is repaid to the Secretary by the private 
                owner.
            ``(3) Treatment of repayments.--Repayments referred 
        to in paragraph (2)(C) shall be treated as a recovery 
        of prior year obligations.''.
    (b) Applicability to Grants.--The amendments made by 
subsection (a) shall apply to grants issued on or after October 
1, 1996.

SEC. 150. REPEAL OF CERTAIN LIMITATIONS ON METROPOLITAN WASHINGTON 
                    AIRPORTS AUTHORITY.

    Section 49108, and the item relating to section 49108 in 
the analysis for chapter 491, are repealed.

SEC. 151. MIDWAY ISLAND AIRPORT.

    Section 186(d) of the Vision 100--Century of Aviation 
Reauthorization Act (117 Stat. 2518) is amended by striking 
``for fiscal years'' and all that follows before ``from 
amounts'' and inserting ``for fiscal years 2012 through 2015''.

SEC. 152. MISCELLANEOUS AMENDMENTS.

    (a) Technical Changes to National Plan of Integrated 
Airport Systems.--Section 47103 is amended--
            (1) in subsection (a)--
                    (A) by striking ``each airport to--'' and 
                inserting ``the airport system to--'';
                    (B) in paragraph (1) by striking ``system 
                in the particular area;'' and inserting 
                ``system, including connection to the surface 
                transportation network; and'';
                    (C) in paragraph (2) by striking ``; and'' 
                and inserting a period; and
                    (D) by striking paragraph (3);
            (2) in subsection (b)--
                    (A) in paragraph (1) by striking the 
                semicolon and inserting ``; and'';
                    (B) by striking paragraph (2) and 
                redesignating paragraph (3) as paragraph (2); 
                and
                    (C) in paragraph (2) (as so redesignated) 
                by striking ``, Short Takeoff and Landing/Very 
                Short Takeoff and Landing aircraft 
                operations,''; and
            (3) in subsection (d) by striking ``status of 
        the''.
    (b) Consolidation of Terminal Development Provisions.--
Section 47119 is amended--
            (1) by redesignating subsections (a), (b), (c), and 
        (d) as subsections (b), (c), (d), and (e), 
        respectively;
            (2) by inserting before subsection (b) (as so 
        redesignated) the following:
    ``(a) Terminal Development Projects.--
            ``(1) In general.--The Secretary of Transportation 
        may approve a project for terminal development 
        (including multimodal terminal development) in a 
        nonrevenue-producing public-use area of a commercial 
        service airport--
                    ``(A) if the sponsor certifies that the 
                airport, on the date the grant application is 
                submitted to the Secretary, has--
                            ``(i) all the safety equipment 
                        required for certification of the 
                        airport under section 44706;
                            ``(ii) all the security equipment 
                        required by regulation; and
                            ``(iii) provided for access by 
                        passengers to the area of the airport 
                        for boarding or exiting aircraft that 
                        are not air carrier aircraft;
                    ``(B) if the cost is directly related to 
                moving passengers and baggage in air commerce 
                within the airport, including vehicles for 
                moving passengers between terminal facilities 
                and between terminal facilities and aircraft; 
                and
                    ``(C) under terms necessary to protect the 
                interests of the Government.
            ``(2) Project in revenue-producing areas and 
        nonrevenue-producing parking lots.--In making a 
        decision under paragraph (1), the Secretary may approve 
        as allowable costs the expenses of terminal development 
        in a revenue-producing area and construction, 
        reconstruction, repair, and improvement in a 
        nonrevenue-producing parking lot if--
                    ``(A) except as provided in section 
                47108(e)(3), the airport does not have more 
                than .05 percent of the total annual passenger 
                boardings in the United States; and
                    ``(B) the sponsor certifies that any needed 
                airport development project affecting safety, 
                security, or capacity will not be deferred 
                because of the Secretary's approval.'';
            (3) in subsection (b)(4)(B) (as redesignated by 
        paragraph (1) of this subsection) by striking 
        ``Secretary of Transportation'' and inserting 
        ``Secretary'';
            (4) in subsections (b)(3) and (b)(4)(A) (as 
        redesignated by paragraph (1) of this subsection) by 
        striking ``section 47110(d)'' and inserting 
        ``subsection (a)'';
            (5) in subsection (b)(5) (as redesignated by 
        paragraph (1) of this subsection) by striking 
        ``subsection (b)(1) and (2)'' and inserting 
        ``subsections (c)(1) and (c)(2)'';
            (6) in subsections (c)(1), (c)(2)(A), (c)(3), and 
        (c)(4) (as redesignated by paragraph (1) of this 
        subsection) by striking ``section 47110(d) of this 
        title'' and inserting ``subsection (a)'';
            (7) in subsections (c)(2)(B) and (c)(5) (as 
        redesignated by paragraph (1) of this subsection) by 
        striking ``section 47110(d)'' and inserting 
        ``subsection (a)''; and
            (8) by adding at the end the following:
    ``(f) Limitation on Discretionary Funds.--The Secretary may 
distribute not more than $20,000,000 from the discretionary 
fund established under section 47115 for terminal development 
projects at a nonhub airport or a small hub airport that is 
eligible to receive discretionary funds under section 
47108(e)(3).''.
    (c) Annual Report.--Section 47131(a) is amended--
            (1) by striking ``April 1'' and inserting ``June 
        1''; and
            (2) by striking paragraphs (1), (2), (3), and (4) 
        and inserting the following:
            ``(1) a summary of airport development and planning 
        completed;
            ``(2) a summary of individual grants issued;
            ``(3) an accounting of discretionary and 
        apportioned funds allocated;
            ``(4) the allocation of appropriations; and''.
    (d) Correction to Emission Credits Provision.--Section 
47139 is amended--
            (1) in subsection (a) by striking ``47102(3)(F),''; 
        and
            (2) in subsection (b)--
                    (A) by striking ``47102(3)(F),''; and
                    (B) by striking ``47103(3)(F),''.
    (e) Conforming Amendments.--
            (1) Section 40117(a)(3)(B) is amended by striking 
        ``section 47110(d)'' and inserting ``section 
        47119(a)''.
            (2) Section 47108(e)(3) is amended--
                    (A) by striking ``section 47110(d)(2)'' and 
                inserting ``section 47119(a)''; and
                    (B) by striking ``section 47110(d)'' and 
                inserting ``section 47119(a)''.
    (f) Correction to Surplus Property Authority.--Section 
47151(e) is amended by striking ``(other than real property'' 
and all that follows through ``(10 U.S.C. 2687 note))''.
    (g) Definitions.--
            (1) Congested airport.--Section 47175(2) is amended 
        by striking ``2001'' and inserting ``2004 or any 
        successor report''.
            (2) Joint use airport.--Section 47175 is amended by 
        adding at the end the following:
            ``(7) Joint use airport.--The term `joint use 
        airport' means an airport owned by the Department of 
        Defense, at which both military and civilian aircraft 
        make shared use of the airfield.''.

SEC. 153. EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND USE PLANNING 
                    AND PROJECTS BY STATE AND LOCAL GOVERNMENTS.

    Section 47141(f) is amended to read as follows:
    ``(f) Sunset.--This section shall not be in effect after 
September 30, 2015.''.

SEC. 154. PRIORITY REVIEW OF CONSTRUCTION PROJECTS IN COLD WEATHER 
                    STATES.

    The Administrator of the Federal Aviation Administration, 
to the extent practicable, shall schedule the Administrator's 
review of construction projects so that projects to be carried 
out in States in which the weather during a typical calendar 
year prevents major construction projects from being carried 
out before May 1 are reviewed as early as possible.

SEC. 155. STUDY ON NATIONAL PLAN OF INTEGRATED AIRPORT SYSTEMS.

    (a) In General.--Not later than 90 days after the date of 
enactment of this Act, the Secretary of Transportation shall 
begin a study to evaluate the formulation of the national plan 
of integrated airport systems (in this section referred to as 
the ``plan'') under section 47103 of title 49, United States 
Code.
    (b) Contents of Study.--The study shall include a review of 
the following:
            (1) The criteria used for including airports in the 
        plan and the application of such criteria in the most 
        recently published version of the plan.
            (2) The changes in airport capital needs as shown 
        in the 2005-2009 and 2007-2011 plans, compared with the 
        amounts apportioned or otherwise made available to 
        individual airports between 2005 and 2010.
            (3) A comparison of the amounts received by 
        airports under the airport improvement program in 
        airport apportionments, State apportionments, and 
        discretionary grants during such fiscal years with 
        capital needs as reported in the plan.
            (4) The effect of transfers of airport 
        apportionments under title 49, United States Code.
            (5) An analysis on the feasibility and advisability 
        of apportioning amounts under section 47114(c)(1) of 
        title 49, United States Code, to the sponsor of each 
        primary airport for each fiscal year an amount that 
        bears the same ratio to the amount subject to the 
        apportionment for fiscal year 2009 as the number of 
        passenger boardings at the airport during the prior 
        calendar year bears to the aggregate of all passenger 
        boardings at all primary airports during that calendar 
        year.
            (6) A documentation and review of the methods used 
        by airports to reach the 10,000 passenger enplanement 
        threshold, including whether such airports subsidize 
        commercial flights to reach such threshold, at every 
        airport in the United States that reported between 
        10,000 and 15,000 passenger enplanements during each of 
        the 2 most recent calendar years for which such data is 
        available.
            (7) Any other matters pertaining to the plan that 
        the Secretary determines appropriate.
    (c) Report to Congress.--
            (1) Submission.--Not later than 36 months after the 
        date that the Secretary begins the study under this 
        section, the Secretary shall submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate a report on the 
        results of the study.
            (2) Contents.--The report shall include--
                    (A) the findings of the Secretary on each 
                of the issues described in subsection (b);
                    (B) recommendations for any changes to 
                policies and procedures for formulating the 
                plan; and
                    (C) recommendations for any changes to the 
                methods of determining the amounts to be 
                apportioned or otherwise made available to 
                individual airports.

SEC. 156. AIRPORT PRIVATIZATION PROGRAM.

    Section 47134(b) is amended in the matter preceding 
paragraph (1) by striking ``5 airports'' and inserting ``10 
airports''.

  TITLE II--NEXTGEN AIR TRANSPORTATION SYSTEM AND AIR TRAFFIC CONTROL 
                             MODERNIZATION

SEC. 201. DEFINITIONS.

    In this title, the following definitions apply:
            (1) Nextgen.--The term ``NextGen'' means the Next 
        Generation Air Transportation System.
            (2) ADS-B.--The term ``ADS-B'' means automatic 
        dependent surveillance-broadcast.
            (3) ADS-B Out.--The term ``ADS-B Out'' means 
        automatic dependent surveillance-broadcast with the 
        ability to transmit information from the aircraft to 
        ground stations and to other equipped aircraft.
            (4) ADS-B In.--The term ``ADS-B In'' means 
        automatic dependent surveillance-broadcast with the 
        ability to transmit information from the aircraft to 
        ground stations and to other equipped aircraft as well 
        as the ability of the aircraft to receive information 
        from other transmitting aircraft and the ground 
        infrastructure.
            (5) RNAV.--The term ``RNAV'' means area navigation.
            (6) RNP.--The term ``RNP'' means required 
        navigation performance.

SEC. 202. NEXTGEN DEMONSTRATIONS AND CONCEPTS.

    In allocating amounts appropriated pursuant to section 
48101(a) of title 49, United States Code, the Secretary of 
Transportation shall give priority to the following NextGen 
activities:
            (1) Next Generation Transportation System--
        Demonstrations and Infrastructure Development.
            (2) Next Generation Transportation System--
        Trajectory Based Operations.
            (3) Next Generation Transportation System--Reduce 
        Weather Impact.
            (4) Next Generation Transportation System--
        Arrivals/Departures at High Density Airports.
            (5) Next Generation Transportation System--
        Collaborative ATM.
            (6) Next Generation Transportation System--Flexible 
        Terminals and Airports.
            (7) Next Generation Transportation System--Safety, 
        Security, and Environment.
            (8) Next Generation Transportation System--Systems 
        Network Facilities.
            (9) Center for Advanced Aviation System 
        Development.
            (10) Next Generation Transportation System--System 
        Development.
            (11) Data Communications in support of Next 
        Generation Air Transportation System.
            (12) ADS-B NAS-Wide Implementation.
            (13) System-Wide Information Management.
            (14) Next Generation Transportation System--
        Facility Consolidation and Realignment.
            (15) En Route Modernization--D-Position Upgrade and 
        System Enhancements.
            (16) National Airspace System Voice System.
            (17) Next Generation Network Enabled Weather.
            (18) NextGen Performance Based Navigation Metroplex 
        Area Navigation/Required Navigation Performance.

SEC. 203. CLARIFICATION OF AUTHORITY TO ENTER INTO REIMBURSABLE 
                    AGREEMENTS.

    Section 106(m) is amended in the last sentence by inserting 
``with or'' before ``without reimbursement''.

SEC. 204. CHIEF NEXTGEN OFFICER.

    Section 106 is amended by adding at the end the following:
    ``(s) Chief NextGen Officer.--
            ``(1) In general.--
                    ``(A) Appointment.--There shall be a Chief 
                NextGen Officer appointed by the Administrator, 
                with the approval of the Secretary. The Chief 
                NextGen Officer shall report directly to the 
                Administrator and shall be subject to the 
                authority of the Administrator.
                    ``(B) Qualifications.--The Chief NextGen 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation and systems engineering.
                    ``(C) Term.--The Chief NextGen Officer 
                shall be appointed for a term of 5 years.
                    ``(D) Removal.--The Chief NextGen Officer 
                shall serve at the pleasure of the 
                Administrator, except that the Administrator 
                shall make every effort to ensure stability and 
                continuity in the leadership of the 
                implementation of NextGen.
                    ``(E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief NextGen 
                Officer occurring before the expiration of the 
                term for which the individual's predecessor was 
                appointed shall be appointed for the remainder 
                of that term.
            ``(2) Compensation.--
                    ``(A) In general.--The Chief NextGen 
                Officer shall be paid at an annual rate of 
                basic pay to be determined by the 
                Administrator. The annual rate may not exceed 
                the annual compensation paid under section 102 
                of title 3. The Chief NextGen Officer shall be 
                subject to the postemployment provisions of 
                section 207 of title 18 as if the position of 
                Chief NextGen Officer were described in section 
                207(c)(2)(A)(i) of that title.
                    ``(B) Bonus.--In addition to the annual 
                rate of basic pay authorized by subparagraph 
                (A), the Chief NextGen Officer may receive a 
                bonus for any calendar year not to exceed 30 
                percent of the annual rate of basic pay, based 
                upon the Administrator's evaluation of the 
                Chief NextGen Officer's performance in relation 
                to the performance goals set forth in the 
                performance agreement described in paragraph 
                (3).
            ``(3) Annual performance agreement.--The 
        Administrator and the Chief NextGen Officer, in 
        consultation with the Federal Aviation Management 
        Advisory Council, shall enter into an annual 
        performance agreement that sets forth measurable 
        organization and individual goals for the Chief NextGen 
        Officer in key operational areas. The agreement shall 
        be subject to review and renegotiation on an annual 
        basis.
            ``(4) Annual performance report.--The Chief NextGen 
        Officer shall prepare and transmit to the Secretary of 
        Transportation, the Committee on Transportation and 
        Infrastructure of the House of Representatives, the 
        Committee on Science, Space, and Technology of the 
        House of Representatives, and the Committee on 
        Commerce, Science, and Transportation of the Senate an 
        annual management report containing such information as 
        may be prescribed by the Secretary.
            ``(5) Responsibilities.--The responsibilities of 
        the Chief NextGen Officer include the following:
                    ``(A) Implementing NextGen activities and 
                budgets across all program offices of the 
                Federal Aviation Administration.
                    ``(B) Coordinating the implementation of 
                NextGen activities with the Office of 
                Management and Budget.
                    ``(C) Reviewing and providing advice on the 
                Administration's modernization programs, 
                budget, and cost accounting system with respect 
                to NextGen.
                    ``(D) With respect to the budget of the 
                Administration--
                            ``(i) developing a budget request 
                        of the Administration related to the 
                        implementation of NextGen;
                            ``(ii) submitting such budget 
                        request to the Administrator; and
                            ``(iii) ensuring that the budget 
                        request supports the annual and long-
                        range strategic plans of the 
                        Administration with respect to NextGen.
                    ``(E) Consulting with the Administrator on 
                the Capital Investment Plan of the 
                Administration prior to its submission to 
                Congress.
                    ``(F) Developing an annual NextGen 
                implementation plan.
                    ``(G) Ensuring that NextGen implementation 
                activities are planned in such a manner as to 
                require that system architecture is designed to 
                allow for the incorporation of novel and 
                currently unknown technologies into NextGen in 
                the future and that current decisions do not 
                bias future decisions unfairly in favor of 
                existing technology at the expense of 
                innovation.
                    ``(H) Coordinating with the NextGen Joint 
                Planning and Development Office with respect to 
                facilitating cooperation among all Federal 
                agencies whose operations and interests are 
                affected by the implementation of NextGen.
            ``(6) Exception.--If the Administrator appoints as 
        the Chief NextGen Officer, pursuant to paragraph 
        (1)(A), an Executive Schedule employee covered by 
        section 5315 of title 5, then paragraphs (1)(B), 
        (1)(C), (2), and (3) of this subsection shall not apply 
        to such employee.
            ``(7) Nextgen defined.--For purposes of this 
        subsection, the term `NextGen' means the Next 
        Generation Air Transportation System.''.

SEC. 205. DEFINITION OF AIR NAVIGATION FACILITY.

    Section 40102(a)(4) is amended--
            (1) by redesignating subparagraph (D) as 
        subparagraph (E);
            (2) by striking subparagraphs (B) and (C); and
            (3) by inserting after subparagraph (A) the 
        following:
                    ``(B) runway lighting and airport surface 
                visual and other navigation aids;
                    ``(C) apparatus, equipment, software, or 
                service for distributing aeronautical and 
                meteorological information to air traffic 
                control facilities or aircraft;
                    ``(D) communication, navigation, or 
                surveillance equipment for air-to-ground or 
                air-to-air applications;'';
            (4) in subparagraph (E) (as redesignated by 
        paragraph (1) of this section)--
                    (A) by striking ``another structure'' and 
                inserting ``any structure, equipment,''; and
                    (B) by striking the period at the end and 
                inserting ``; and''; and
            (5) by adding at the end the following:
                    ``(F) buildings, equipment, and systems 
                dedicated to the national airspace system.''.

SEC. 206. CLARIFICATION TO ACQUISITION REFORM AUTHORITY.

    Section 40110(c) is amended--
            (1) by inserting ``and'' after the semicolon in 
        paragraph (3);
            (2) by striking paragraph (4); and
            (3) by redesignating paragraph (5) as paragraph 
        (4).

SEC. 207. ASSISTANCE TO FOREIGN AVIATION AUTHORITIES.

    Section 40113(e) is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``(whether public or 
                private)'' after ``authorities''; and
                    (B) by striking ``safety.'' and inserting 
                ``safety or efficiency. The Administrator is 
                authorized to participate in, and submit offers 
                in response to, competitions to provide these 
                services, and to contract with foreign aviation 
                authorities to provide these services 
                consistent with section 106(l)(6).'';
            (2) in paragraph (2) by adding at the end the 
        following: ``The Administrator is authorized, 
        notwithstanding any other provision of law or policy, 
        to accept payments for services provided under this 
        subsection in arrears.''; and
            (3) by striking paragraph (3) and inserting the 
        following:
            ``(3) Crediting appropriations.--Funds received by 
        the Administrator pursuant to this section shall--
                    ``(A) be credited to the appropriation 
                current when the amount is received;
                    ``(B) be merged with and available for the 
                purposes of such appropriation; and
                    ``(C) remain available until expended.''.

SEC. 208. NEXT GENERATION AIR TRANSPORTATION SYSTEM JOINT PLANNING AND 
                    DEVELOPMENT OFFICE.

    (a) Redesignation of JPDO Director to Associate 
Administrator.--
            (1) Associate administrator for next generation air 
        transportation system planning, development, and 
        interagency coordination.--Section 709(a) of the Vision 
        100--Century of Aviation Reauthorization Act (49 U.S.C. 
        40101 note; 117 Stat. 2582) is amended--
                    (A) by redesignating paragraphs (2), (3), 
                and (4) as paragraphs (3), (4), and (5), 
                respectively; and
                    (B) by inserting after paragraph (1) the 
                following:
    ``(2) The head of the Office shall be the Associate 
Administrator for Next Generation Air Transportation System 
Planning, Development, and Interagency Coordination, who shall 
be appointed by the Administrator of the Federal Aviation 
Administration, with the approval of the Secretary. The 
Administrator shall appoint the Associate Administrator after 
consulting with the Chairman of the Next Generation Senior 
Policy Committee and providing advanced notice to the other 
members of that Committee.''.
            (2) Responsibilities.--Section 709(a)(3) of such 
        Act (as redesignated by paragraph (1) of this 
        subsection) is amended--
                    (A) in subparagraph (G) by striking ``; 
                and'' and inserting a semicolon;
                    (B) in subparagraph (H) by striking the 
                period at the end and inserting a semicolon; 
                and
                    (C) by adding at the end the following:
            ``(I) establishing specific quantitative goals for 
        the safety, capacity, efficiency, performance, and 
        environmental impacts of each phase of Next Generation 
        Air Transportation System planning and development 
        activities and measuring actual operational experience 
        against those goals, taking into account noise 
        pollution reduction concerns of affected communities to 
        the extent practicable in establishing the 
        environmental goals;
            ``(J) working to ensure global interoperability of 
        the Next Generation Air Transportation System;
            ``(K) working to ensure the use of weather 
        information and space weather information in the Next 
        Generation Air Transportation System as soon as 
        possible;
            ``(L) overseeing, with the Administrator and in 
        consultation with the Chief NextGen Officer, the 
        selection of products or outcomes of research and 
        development activities that should be moved to a 
        demonstration phase; and
            ``(M) maintaining a baseline modeling and 
        simulation environment for testing and evaluating 
        alternative concepts to satisfy Next Generation Air 
        Transportation System enterprise architecture 
        requirements.''.
            (3) Cooperation with other federal agencies.--
        Section 709(a)(4) of such Act (as redesignated by 
        paragraph (1) of this subsection) is amended--
                    (A) by striking ``(4)'' and inserting 
                ``(4)(A)''; and
                    (B) by adding at the end the following:
    ``(B) The Secretary of Defense, the Administrator of the 
National Aeronautics and Space Administration, the Secretary of 
Commerce, the Secretary of Homeland Security, and the head of 
any other Federal agency from which the Secretary of 
Transportation requests assistance under subparagraph (A) shall 
designate a senior official in the agency to be responsible 
for--
            ``(i) carrying out the activities of the agency 
        relating to the Next Generation Air Transportation 
        System in coordination with the Office, including the 
        execution of all aspects of the work of the agency in 
        developing and implementing the integrated work plan 
        described in subsection (b)(5);
            ``(ii) serving as a liaison for the agency in 
        activities of the agency relating to the Next 
        Generation Air Transportation System and coordinating 
        with other Federal agencies involved in activities 
        relating to the System; and
            ``(iii) ensuring that the agency meets its 
        obligations as set forth in any memorandum of 
        understanding executed by or on behalf of the agency 
        relating to the Next Generation Air Transportation 
        System.
    ``(C) The head of a Federal agency referred to in 
subparagraph (B) shall--
            ``(i) ensure that the responsibilities of the 
        agency relating to the Next Generation Air 
        Transportation System are clearly communicated to the 
        senior official of the agency designated under 
        subparagraph (B);
            ``(ii) ensure that the performance of the senior 
        official in carrying out the responsibilities of the 
        agency relating to the Next Generation Air 
        Transportation System is reflected in the official's 
        annual performance evaluations and compensation;
            ``(iii) establish or designate an office within the 
        agency to carry out its responsibilities under the 
        memorandum of understanding under the supervision of 
        the designated official; and
            ``(iv) ensure that the designated official has 
        sufficient budgetary authority and staff resources to 
        carry out the agency's Next Generation Air 
        Transportation System responsibilities as set forth in 
        the integrated plan under subsection (b).
    ``(D) Not later than 6 months after the date of enactment 
of this subparagraph, the head of each Federal agency that has 
responsibility for carrying out any activity under the 
integrated plan under subsection (b) shall execute a memorandum 
of understanding with the Office obligating that agency to 
carry out the activity.''.
            (4) Coordination with omb.--Section 709(a) of such 
        Act (117 Stat. 2582) is further amended by adding at 
        the end the following:
    ``(6)(A) The Office shall work with the Director of the 
Office of Management and Budget to develop a process whereby 
the Director will identify projects related to the Next 
Generation Air Transportation System across the agencies 
referred to in paragraph (4)(A) and consider the Next 
Generation Air Transportation System as a unified, cross-agency 
program.
    ``(B) The Director of the Office of Management and Budget, 
to the extent practicable, shall--
            ``(i) ensure that--
                    ``(I) each Federal agency covered by the 
                plan has sufficient funds requested in the 
                President's budget, as submitted under section 
                1105(a) of title 31, United States Code, for 
                each fiscal year covered by the plan to carry 
                out its responsibilities under the plan; and
                    ``(II) the development and implementation 
                of the Next Generation Air Transportation 
                System remains on schedule;
            ``(ii) include, in the President's budget, a 
        statement of the portion of the estimated budget of 
        each Federal agency covered by the plan that relates to 
        the activities of the agency under the Next Generation 
        Air Transportation System; and
            ``(iii) identify and justify as part of the 
        President's budget submission any inconsistencies 
        between the plan and amounts requested in the budget.
    ``(7) The Associate Administrator for Next Generation Air 
Transportation System Planning, Development, and Interagency 
Coordination shall be a voting member of the Joint Resources 
Council of the Federal Aviation Administration.''.
    (b) Integrated Plan.--Section 709(b) of such Act (117 Stat. 
2583) is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``meets air'' and inserting 
                ``meets anticipated future air''; and
                    (B) by striking ``beyond those currently 
                included in the Federal Aviation 
                Administration's operational evolution plan'';
            (2) at the end of paragraph (3) by striking 
        ``and'';
            (3) at the end of paragraph (4) by striking the 
        period and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(5) a multiagency integrated work plan for the 
        Next Generation Air Transportation System that 
        includes--
                    ``(A) an outline of the activities required 
                to achieve the end-state architecture, as 
                expressed in the concept of operations and 
                enterprise architecture documents, that 
                identifies each Federal agency or other entity 
                responsible for each activity in the outline;
                    ``(B) details on a year-by-year basis of 
                specific accomplishments, activities, research 
                requirements, rulemakings, policy decisions, 
                and other milestones of progress for each 
                Federal agency or entity conducting activities 
                relating to the Next Generation Air 
                Transportation System;
                    ``(C) for each element of the Next 
                Generation Air Transportation System, an 
                outline, on a year-by-year basis, of what is to 
                be accomplished in that year toward meeting the 
                Next Generation Air Transportation System's 
                end-state architecture, as expressed in the 
                concept of operations and enterprise 
                architecture documents, as well as identifying 
                each Federal agency or other entity that will 
                be responsible for each component of any 
                research, development, or implementation 
                program;
                    ``(D) an estimate of all necessary 
                expenditures on a year-by-year basis, including 
                a statement of each Federal agency or entity's 
                responsibility for costs and available 
                resources, for each stage of development from 
                the basic research stage through the 
                demonstration and implementation phase;
                    ``(E) a clear explanation of how each step 
                in the development of the Next Generation Air 
                Transportation System will lead to the 
                following step and of the implications of not 
                successfully completing a step in the time 
                period described in the integrated work plan;
                    ``(F) a transition plan for the 
                implementation of the Next Generation Air 
                Transportation System that includes date-
                specific milestones for the implementation of 
                new capabilities into the national airspace 
                system;
                    ``(G) date-specific timetables for meeting 
                the environmental goals identified in 
                subsection (a)(3)(I); and
                    ``(H) a description of potentially 
                significant operational or workforce changes 
                resulting from deployment of the Next 
                Generation Air Transportation System.''.
    (c) NextGen Implementation Plan.--Section 709(d) of such 
Act (117 Stat. 2584) is amended to read as follows:
    ``(d) NextGen Implementation Plan.--The Administrator shall 
develop and publish annually the document known as the NextGen 
Implementation Plan, or any successor document, that provides a 
detailed description of how the agency is implementing the Next 
Generation Air Transportation System.''.
    (d) Contingency Planning.--The Associate Administrator for 
Next Generation Air Transportation System Planning, 
Development, and Interagency Coordination shall, as part of the 
design of the System, develop contingency plans for dealing 
with the degradation of the System in the event of a natural 
disaster, major equipment failure, or act of terrorism.

SEC. 209. NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY COMMITTEE.

    (a) Meetings.--Section 710(a) of the Vision 100--Century of 
Aviation Reauthorization Act (49 U.S.C. 40101 note; 117 Stat. 
2584) is amended by inserting before the period at the end the 
following ``and shall meet at least twice each year''.
    (b) Annual Report.--Section 710 of such Act (117 Stat. 
2584) is amended by adding at the end the following:
    ``(e) Annual Report.--
            ``(1) Submission to congress.--Not later than 1 
        year after the date of enactment of this subsection, 
        and annually thereafter on the date of submission of 
        the President's budget request to Congress under 
        section 1105(a) of title 31, United States Code, the 
        Secretary shall submit to Congress a report summarizing 
        the progress made in carrying out the integrated work 
        plan required by section 709(b)(5) and any changes in 
        that plan.
            ``(2) Contents.--The report shall include--
                    ``(A) a copy of the updated integrated work 
                plan;
                    ``(B) a description of the progress made in 
                carrying out the integrated work plan and any 
                changes in that plan, including any changes 
                based on funding shortfalls and limitations set 
                by the Office of Management and Budget;
                    ``(C) a detailed description of--
                            ``(i) the success or failure of 
                        each item of the integrated work plan 
                        for the previous year and relevant 
                        information as to why any milestone was 
                        not met; and
                            ``(ii) the impact of not meeting 
                        the milestone and what actions will be 
                        taken in the future to account for the 
                        failure to complete the milestone;
                    ``(D) an explanation of any change to 
                future years in the integrated work plan and 
                the reasons for such change; and
                    ``(E) an identification of the levels of 
                funding for each agency participating in the 
                integrated work plan devoted to programs and 
                activities under the plan for the previous 
                fiscal year and in the President's budget 
                request.''.

SEC. 210. IMPROVED MANAGEMENT OF PROPERTY INVENTORY.

    Section 40110(a) is amended by striking paragraphs (2) and 
(3) and inserting the following:
            ``(2) may construct and improve laboratories and 
        other test facilities; and
            ``(3) may dispose of any interest in property for 
        adequate compensation, and the amount so received 
        shall--
                    ``(A) be credited to the appropriation 
                current when the amount is received;
                    ``(B) be merged with and available for the 
                purposes of such appropriation; and
                    ``(C) remain available until expended.''.

SEC. 211. AUTOMATIC DEPENDENT SURVEILLANCE-BROADCAST SERVICES.

    (a) Review by DOT Inspector General.--
            (1) In general.--The Inspector General of the 
        Department of Transportation shall conduct a review 
        concerning the Federal Aviation Administration's award 
        and oversight of any contracts entered into by the 
        Administration to provide ADS-B services for the 
        national airspace system.
            (2) Contents.--The review shall include, at a 
        minimum--
                    (A) an examination of how the 
                Administration manages program risks;
                    (B) an assessment of expected benefits 
                attributable to the deployment of ADS-B 
                services, including the Administration's plans 
                for implementation of advanced operational 
                procedures and air-to-air applications, as well 
                as the extent to which ground radar will be 
                retained;
                    (C) an assessment of the Administration's 
                analysis of specific operational benefits, and 
                benefit/costs analyses of planned operational 
                benefits conducted by the Administration, for 
                ADS-B In and ADS-B Out avionics equipage for 
                airspace users;
                    (D) a determination of whether the 
                Administration has established sufficient 
                mechanisms to ensure that all design, 
                acquisition, operation, and maintenance 
                requirements have been met by the contractor;
                    (E) an assessment of whether the 
                Administration and any contractors are meeting 
                cost, schedule, and performance milestones, as 
                measured against the original baseline of the 
                Administration's program for providing ADS-B 
                services;
                    (F) an assessment of how security issues 
                are being addressed in the overall design and 
                implementation of the ADS-B system;
                    (G) identification of any potential 
                operational or workforce changes resulting from 
                deployment of ADS-B; and
                    (H) any other matters or aspects relating 
                to contract implementation and oversight that 
                the Inspector General determines merit 
                attention.
            (3) Reports to congress.--The Inspector General 
        shall submit, periodically (and on at least an annual 
        basis), to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate a report on the results of the review 
        conducted under this subsection.
    (b) Rulemaking.--
            (1) ADS-B In.--Not later than 1 year after the date 
        of enactment of this Act, the Administrator of the 
        Federal Aviation Administration shall initiate a 
        rulemaking proceeding to issue guidelines and 
        regulations relating to ADS-B In technology that--
                    (A) identify the ADS-B In technology that 
                will be required under NextGen;
                    (B) subject to paragraph (2), require all 
                aircraft operating in capacity constrained 
                airspace, at capacity constrained airports, or 
                in any other airspace deemed appropriate by the 
                Administrator to be equipped with ADS-B In 
                technology by 2020; and
                    (C) identify--
                            (i) the type of avionics required 
                        of aircraft for all classes of 
                        airspace;
                            (ii) the expected costs associated 
                        with the avionics; and
                            (iii) the expected uses and 
                        benefits of the avionics.
            (2) Readiness verification.--Before the 
        Administrator completes an ADS-B In equipage rulemaking 
        proceeding or issues an interim or final rule pursuant 
        to paragraph (1), the Chief NextGen Officer shall 
        verify that--
                    (A) the necessary ground infrastructure is 
                installed and functioning properly;
                    (B) certification standards have been 
                approved; and
                    (C) appropriate operational platforms 
                interface safely and efficiently.
    (c) Use of ADS-B Technology.--
            (1) Plans.--Not later than 18 months after the date 
        of enactment of this Act, the Administrator shall 
        develop, in consultation with appropriate employee and 
        industry groups, a plan for the use of ADS-B technology 
        for surveillance and active air traffic control.
            (2) Contents.--The plan shall--
                    (A) include provisions to test the use of 
                ADS-B technology for surveillance and active 
                air traffic control in specific regions of the 
                United States with the most congested airspace;
                    (B) identify the equipment required at air 
                traffic control facilities and the training 
                required for air traffic controllers;
                    (C) identify procedures, to be developed in 
                consultation with appropriate employee and 
                industry groups, to conduct air traffic 
                management in mixed equipage environments; and
                    (D) establish a policy in test regions 
                referred to in subparagraph (A), in 
                consultation with appropriate employee and 
                industry groups, to provide incentives for 
                equipage with ADS-B technology, including 
                giving priority to aircraft equipped with such 
                technology before the 2020 equipage deadline.

SEC. 212. EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR NEXTGEN.

    (a) Review.--The Administrator of the Federal Aviation 
Administration shall enter into an arrangement with the 
National Research Council to review the enterprise architecture 
for the NextGen.
    (b) Contents.--At a minimum, the review to be conducted 
under subsection (a) shall--
            (1) highlight the technical activities, including 
        human-system design, organizational design, and other 
        safety and human factor aspects of the system, that 
        will be necessary to successfully transition current 
        and planned modernization programs to the future system 
        envisioned by the Joint Planning and Development Office 
        of the Administration;
            (2) assess technical, cost, and schedule risk for 
        the software development that will be necessary to 
        achieve the expected benefits from a highly automated 
        air traffic management system and the implications for 
        ongoing modernization projects; and
            (3) determine how risks with automation efforts for 
        the NextGen can be mitigated based on the experiences 
        of other public or private entities in developing 
        complex, software-intensive systems.
    (c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing the results of 
the review conducted pursuant to subsection (a).

SEC. 213. ACCELERATION OF NEXTGEN TECHNOLOGIES.

    (a) Operational Evolution Partnership (OEP) Airport 
Procedures.--
            (1) OEP airports report.--Not later than 6 months 
        after the date of enactment of this Act, the 
        Administrator of the Federal Aviation Administration 
        shall publish a report, after consultation with 
        representatives of appropriate Administration employee 
        groups, airport operators, air carriers, general 
        aviation representatives, aircraft and avionics 
        manufacturers, and third parties that have received 
        letters of qualification from the Administration to 
        design and validate required navigation performance 
        flight paths for public use (in this section referred 
        to as ``qualified third parties'') that includes the 
        following:
                    (A) RNP/RNAV operations for oep airports.--
                The required navigation performance and area 
                navigation operations, including the procedures 
                to be developed, certified, and published and 
                the air traffic control operational changes, to 
                maximize the fuel efficiency and airspace 
                capacity of NextGen commercial operations at 
                each of the 35 operational evolution 
                partnership airports identified by the 
                Administration and any medium or small hub 
                airport located within the same metroplex area 
                considered appropriate by the Administrator. 
                The Administrator shall, to the maximum extent 
                practicable, avoid overlays of existing flight 
                procedures, but if unavoidable, the 
                Administrator shall clearly identify each 
                required navigation performance and area 
                navigation procedure that is an overlay of an 
                existing instrument flight procedure and the 
                reason why such an overlay was used.
                    (B) Coordination and implementation 
                activities for oep airports.--A description of 
                the activities and operational changes and 
                approvals required to coordinate and utilize 
                the procedures at OEP airports.
                    (C) Implementation plan for oep airports.--
                A plan for implementing the procedures for OEP 
                airports under subparagraph (A) that 
                establishes--
                            (i) clearly defined budget, 
                        schedule, project organization, and 
                        leadership requirements;
                            (ii) specific implementation and 
                        transition steps;
                            (iii) baseline and performance 
                        metrics for--
                                    (I) measuring the 
                                Administration's progress in 
                                implementing the plan, 
                                including the percentage 
                                utilization of required 
                                navigation performance in the 
                                national airspace system; and
                                    (II) achieving measurable 
                                fuel burn and carbon dioxide 
                                emissions reductions compared 
                                to current performance;
                            (iv) expedited environmental review 
                        procedures and processes for timely 
                        environmental approval of area 
                        navigation and required navigation 
                        performance that offer significant 
                        efficiency improvements as determined 
                        by baseline and performance metrics 
                        under clause (iii);
                            (v) coordination and communication 
                        mechanisms with qualified third 
                        parties, if applicable;
                            (vi) plans to address human 
                        factors, training, and other issues for 
                        air traffic controllers surrounding the 
                        adoption of RNP procedures in the en 
                        route and terminal environments, 
                        including in a mixed operational 
                        environment; and
                            (vii) a lifecycle management 
                        strategy for RNP procedures to be 
                        developed by qualified third parties, 
                        if applicable.
                    (D) Additional procedures for oep 
                airports.--A process for the identification, 
                certification, and publication of additional 
                required navigation performance and area 
                navigation procedures that may provide 
                operational benefits at OEP airports, and any 
                medium or small hub airport located within the 
                same metroplex area as the OEP airport, in the 
                future.
            (2) Implementation schedule for oep airports.--The 
        Administrator shall certify, publish, and implement--
                    (A) not later than 18 months after the date 
                of enactment of this Act, 30 percent of the 
                required procedures at OEP airports;
                    (B) not later than 36 months after the date 
                of enactment of this Act, 60 percent of the 
                required procedures at OEP airports; and
                    (C) before June 30, 2015, 100 percent of 
                the required procedures at OEP airports.
    (b) Non-OEP Airports.--
            (1) Non-OEP airports report.--Not later than 6 
        months after the date of enactment of this Act, the 
        Administrator of the Federal Aviation Administration 
        shall publish a report, after consultation with 
        representatives of appropriate Administration employee 
        groups, airport operators, air carriers, general 
        aviation representatives, aircraft and avionics 
        manufacturers, and third parties that have received 
        letters of qualification from the Administration to 
        design and validate required navigation performance 
        flight paths for public use (in this section referred 
        to as ``qualified third parties'') that includes the 
        following:
                    (A) Rnp operations for non-oep airports.--A 
                list of required navigation performance 
                procedures (as defined in FAA order 8260.52(d)) 
                to be developed, certified, and published, and 
                the air traffic control operational changes, to 
                maximize the fuel efficiency and airspace 
                capacity of NextGen commercial operations at 35 
                non-OEP small, medium, and large hub airports 
                other than those referred to in subsection 
                (a)(1). The Administrator shall choose such 
                non-OEP airports considered appropriate by the 
                Administrator to produce maximum operational 
                benefits, including improved fuel efficiency 
                and emissions reductions that do not have 
                public RNP procedures that produce such 
                benefits on the date of enactment of this Act. 
                The Administrator shall, to the maximum extent 
                practicable, avoid overlays of existing flight 
                procedures, but if unavoidable, the 
                Administrator shall clearly identify each 
                required navigation performance procedure that 
                is an overlay of an existing instrument flight 
                procedure and the reason why such an overlay 
                was used.
                    (B) Coordination and implementation 
                activities for non-oep airports.--A description 
                of the activities and operational changes and 
                approvals required to coordinate and to utilize 
                the procedures required by subparagraph (A) at 
                each of the airports described in such 
                subparagraph.
                    (C) Implementation plan for non-oep 
                airports.--A plan for implementation of the 
                procedures required by subparagraph (A) that 
                establishes--
                            (i) clearly defined budget, 
                        schedule, project organization, and 
                        leadership requirements;
                            (ii) specific implementation and 
                        transition steps;
                            (iii) coordination and 
                        communications mechanisms with 
                        qualified third parties;
                            (iv) plans to address human 
                        factors, training, and other issues for 
                        air traffic controllers surrounding the 
                        adoption of RNP procedures in the en 
                        route and terminal environments, 
                        including in a mixed operational 
                        environment;
                            (v) baseline and performance 
                        metrics for--
                                    (I) measuring the 
                                Administration's progress in 
                                implementing the plan, 
                                including the percentage 
                                utilization of required 
                                navigation performance in the 
                                national airspace system; and
                                    (II) achieving measurable 
                                fuel burn and carbon dioxide 
                                emissions reduction compared to 
                                current performance;
                            (vi) expedited environmental review 
                        procedures and processes for timely 
                        environmental approval of area 
                        navigation and required navigation 
                        performance that offer significant 
                        efficiency improvements as determined 
                        by baseline and performance metrics 
                        established under clause (v);
                            (vii) a description of the software 
                        and database information, such as a 
                        current version of the Noise Integrated 
                        Routing System or the Integrated Noise 
                        Model that the Administration will need 
                        to make available to qualified third 
                        parties to enable those third parties 
                        to design procedures that will meet the 
                        broad range of requirements of the 
                        Administration; and
                            (viii) lifecycle management 
                        strategy for RNP procedures to be 
                        developed by qualified third parties, 
                        if applicable.
                    (D) Additional procedures for non-oep 
                airports.--A process for the identification, 
                certification, and publication of additional 
                required navigation performance procedures that 
                may provide operational benefits at non-OEP 
                airports in the future.
            (2) Implementation schedule for non-oep airports.--
        The Administrator shall certify, publish, and 
        implement--
                    (A) not later than 18 months after the date 
                of enactment of this Act, 25 percent of the 
                required procedures for non-OEP airports;
                    (B) not later than 36 months after the date 
                of enactment of this Act, 50 percent of the 
                required procedures for non-OEP airports; and
                    (C) before June 30, 2016, 100 percent of 
                the required procedures for non-OEP airports.
    (c) Coordinated and Expedited Review.--
            (1) In general.--Navigation performance and area 
        navigation procedures developed, certified, published, 
        or implemented under this section shall be presumed to 
        be covered by a categorical exclusion (as defined in 
        section 1508.4 of title 40, Code of Federal 
        Regulations) under chapter 3 of FAA Order 1050.1E 
        unless the Administrator determines that extraordinary 
        circumstances exist with respect to the procedure.
            (2) Nextgen procedures.--Any navigation performance 
        or other performance based navigation procedure 
        developed, certified, published, or implemented that, 
        in the determination of the Administrator, would result 
        in measurable reductions in fuel consumption, carbon 
        dioxide emissions, and noise, on a per flight basis, as 
        compared to aircraft operations that follow existing 
        instrument flight rules procedures in the same 
        airspace, shall be presumed to have no significant 
        affect on the quality of the human environment and the 
        Administrator shall issue and file a categorical 
        exclusion for the new procedure.
    (d) Deployment Plan for Nationwide Data Communications 
System.--Not later than 1 year after the date of enactment of 
this Act, the Administrator 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 plan for implementation of a nationwide data 
communications system. The plan shall include--
            (1) clearly defined budget, schedule, project 
        organization, and leadership requirements;
            (2) specific implementation and transition steps; 
        and
            (3) baseline and performance metrics for measuring 
        the Administration's progress in implementing the plan.
    (e) Improved Performance Standards.--
            (1) Assessment of work being performed under 
        nextgen implementation plan.--The Administrator shall 
        clearly outline in the NextGen Implementation Plan 
        document of the Administration the work being performed 
        under the plan to determine--
                    (A) whether utilization of ADS-B, RNP, and 
                other technologies as part of NextGen 
                implementation will display the position of 
                aircraft more accurately and frequently to 
                enable a more efficient use of existing 
                airspace and result in reduced consumption of 
                aviation fuel and aircraft engine emissions; 
                and
                    (B) the feasibility of reducing aircraft 
                separation standards in a safe manner as a 
                result of the implementation of such 
                technologies.
            (2) Aircraft separation standards.--If the 
        Administrator determines that the standards referred to 
        in paragraph (1)(B) can be reduced safely, the 
        Administrator shall include in the NextGen 
        Implementation Plan a timetable for implementation of 
        such reduced standards.
    (f) Third-Party Usage.--The Administration shall establish 
a program under which the Administrator is authorized to use 
qualified third parties in the development, testing, and 
maintenance of flight procedures.

SEC. 214. PERFORMANCE METRICS.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall establish and begin tracking 
national airspace system performance metrics, including, at a 
minimum, metrics with respect to--
            (1) actual arrival and departure rates per hour 
        measured against the currently published aircraft 
        arrival rate and aircraft departure rate for the 35 
        operational evolution partnership airports;
            (2) average gate-to-gate times;
            (3) fuel burned between key city pairs;
            (4) operations using the advanced navigation 
        procedures, including performance based navigation 
        procedures;
            (5) the average distance flown between key city 
        pairs;
            (6) the time between pushing back from the gate and 
        taking off;
            (7) continuous climb or descent;
            (8) average gate arrival delay for all arrivals;
            (9) flown versus filed flight times for key city 
        pairs;
            (10) implementation of NextGen Implementation Plan, 
        or any successor document, capabilities designed to 
        reduce emissions and fuel consumption;
            (11) the Administration's unit cost of providing 
        air traffic control services; and
            (12) runway safety, including runway incursions, 
        operational errors, and loss of standard separation 
        events.
    (b) Baselines.--The Administrator, in consultation with 
aviation industry stakeholders, shall identify baselines for 
each of the metrics established under subsection (a) and 
appropriate methods to measure deviations from the baselines.
    (c) Publication.--The Administrator shall make data 
obtained under subsection (a) available to the public in a 
searchable, sortable, and downloadable format through the Web 
site of the Administration and other appropriate media.
    (d) Report.--Not later than 180 days after the date of 
enactment of this Act, the Administrator 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 that contains--
            (1) a description of the metrics that will be used 
        to measure the Administration's progress in 
        implementing NextGen capabilities and operational 
        results;
            (2) information on any additional metrics 
        developed; and
            (3) a process for holding the Administration 
        accountable for meeting or exceeding the metrics 
        baselines identified in subsection (b).

SEC. 215. CERTIFICATION STANDARDS AND RESOURCES.

    (a) Process for Certification.--Not later than 180 days 
after the date of enactment of this Act, the Administrator of 
the Federal Aviation Administration shall develop a plan to 
accelerate and streamline the process for certification of 
NextGen technologies, including--
            (1) establishment of updated project plans and 
        timelines;
            (2) identification of the specific activities 
        needed to certify NextGen technologies, including the 
        establishment of NextGen technical requirements for the 
        manufacture of equipage, installation of equipage, 
        airline operational procedures, pilot training 
        standards, air traffic control procedures, and air 
        traffic controller training;
            (3) identification of staffing requirements for the 
        Air Certification Service and the Flight Standards 
        Service, taking into consideration the leveraging of 
        assistance from third parties and designees;
            (4) establishment of a program under which the 
        Administration will use third parties in the 
        certification process; and
            (5) establishment of performance metrics to measure 
        the Administration's progress.
    (b) Certification Integrity.--The Administrator shall 
ensure that equipment, systems, or services used in the 
national airspace system meet appropriate certification 
requirements regardless of whether the equipment, system, or 
service is publically or privately owned.

SEC. 216. SURFACE SYSTEMS ACCELERATION.

    (a) In General.--The Chief Operating Officer of the Air 
Traffic Organization shall--
            (1) evaluate the Airport Surface Detection 
        Equipment-Model X program for its potential 
        contribution to implementation of the NextGen 
        initiative;
            (2) evaluate airport surveillance technologies and 
        associated collaborative surface management software 
        for potential contributions to implementation of 
        NextGen surface management;
            (3) accelerate implementation of the program 
        referred to in paragraph (1); and
            (4) carry out such additional duties as the 
        Administrator of the Federal Aviation Administration 
        may require.
    (b) Expedited Certification and Utilization.--The 
Administrator shall--
            (1) consider options for expediting the 
        certification of Ground-Based Augmentation System 
        technology; and
            (2) develop a plan to utilize such a system at the 
        35 operational evolution partnership airports by 
        December 31, 2012.

SEC. 217. INCLUSION OF STAKEHOLDERS IN AIR TRAFFIC CONTROL 
                    MODERNIZATION PROJECTS.

    (a) Process for Employee Inclusion.--Notwithstanding any 
other law or agreement, the Administrator of the Federal 
Aviation Administration shall establish a process or processes 
for including qualified employees selected by each exclusive 
collective bargaining representative of employees of the 
Administration impacted by the air traffic control 
modernization process to serve in a collaborative and expert 
capacity in the planning and development of air traffic control 
modernization projects, including NextGen.
    (b) Adherence to Deadlines.--Participants in these 
processes shall adhere, to the greatest extent possible, to all 
deadlines and milestones established pursuant to this title.
    (c) No Change in Employee Status.--Participation in these 
processes by an employee shall not--
            (1) serve as a waiver of any bargaining obligations 
        or rights;
            (2) entitle the employee to any additional 
        compensation or benefits with the exception of a per 
        diem, if appropriate; or
            (3) entitle the employee to prevent or unduly delay 
        the exercise of management prerogatives.
    (d) Working Groups.--Except in extraordinary circumstances, 
the Administrator shall not pay overtime related to work group 
participation.
    (e) Report.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall report to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate on the implementation of this 
section.

SEC. 218. AIRSPACE REDESIGN.

    (a) Findings.--Congress finds the following:
            (1) The airspace redesign efforts of the Federal 
        Aviation Administration will play a critical near-term 
        role in enhancing capacity, reducing delays, 
        transitioning to more flexible routing, and ultimately 
        saving money in fuel costs for airlines and airspace 
        users.
            (2) The critical importance of airspace redesign 
        efforts is underscored by the fact that they are 
        highlighted in strategic plans of the Administration, 
        including Flight Plan 2009-2013 and the NextGen 
        Implementation Plan.
            (3) Funding cuts have led to delays and deferrals 
        of critical capacity enhancing airspace redesign 
        efforts.
            (4) New runways planned for the period of fiscal 
        years 2011 and 2012 will not provide estimated capacity 
        benefits without additional funds.
    (b) Noise Impacts of New York/New Jersey/Philadelphia 
Metropolitan Area Airspace Redesign.--
            (1) Monitoring.--The Administrator of the Federal 
        Aviation Administration, in conjunction with the Port 
        Authority of New York and New Jersey and the 
        Philadelphia International Airport, shall monitor the 
        noise impacts of the New York/New Jersey/Philadelphia 
        Metropolitan Area Airspace Redesign.
            (2) Report.--Not later than 1 year following the 
        first day of completion of the New York/New Jersey/
        Philadelphia Metropolitan Area Airspace Redesign, the 
        Administrator shall submit to Congress a report on the 
        findings of the Administrator with respect to 
        monitoring conducted under paragraph (1).

SEC. 219. STUDY ON FEASIBILITY OF DEVELOPMENT OF A PUBLIC INTERNET WEB-
                    BASED RESOURCE ON LOCATIONS OF POTENTIAL AVIATION 
                    OBSTRUCTIONS.

    (a) Study.--The Administrator of the Federal Aviation 
Administration shall carry out a study on the feasibility of 
developing a publicly searchable, Internet Web-based resource 
that provides information regarding the height and latitudinal 
and longitudinal locations of guy-wire and free-standing tower 
obstructions.
    (b) Considerations.--In conducting the study, the 
Administrator shall consult with affected industries and 
appropriate Federal agencies.
    (c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit a report 
to the appropriate committees of Congress on the results of the 
study.

SEC. 220. NEXTGEN RESEARCH AND DEVELOPMENT CENTER OF EXCELLENCE.

    (a) In General.--The Administrator of the Federal Aviation 
Administration may enter into an agreement, on a competitive 
basis, to assist in the establishment of a center of excellence 
for the research and development of NextGen technologies.
    (b) Functions.--The Administrator shall ensure that the 
center established under subsection (a)--
            (1) leverages resources and partnerships, including 
        appropriate programs of the Administration, to enhance 
        the research and development of NextGen technologies by 
        academia and industry; and
            (2) provides educational, technical, and analytical 
        assistance to the Administration and other Federal 
        departments and agencies with responsibilities to 
        research and develop NextGen technologies.

SEC. 221. PUBLIC-PRIVATE PARTNERSHIPS.

    (a) In General.--The Secretary may establish an avionics 
equipage incentive program for the purpose of equipping general 
aviation and commercial aircraft with communications, 
surveillance, navigation, and other avionics equipment as 
determined by the Secretary to be in the interest of achieving 
NextGen capabilities for such aircraft.
    (b) NextGen Public-private Partnerships.--The incentive 
program established under subsection (a) shall, at a minimum--
            (1) be based on public-private partnership 
        principles; and
            (2) leverage and maximize the use of private sector 
        capital.
    (c) Financial Instruments.--Subject to the availability of 
appropriated funds, the Secretary may use financial instruments 
to facilitate public-private financing for the equipage of 
general aviation and commercial aircraft registered under 
section 44103 of title 49, United States Code. To the extent 
appropriations are not made available, the Secretary may 
establish the program, provided the costs are covered by the 
fees and premiums authorized by subsection (d)(2). For purposes 
of this section, the term ``financial instruments'' means loan 
guarantees and other credit assistance designed to leverage and 
maximize private sector capital.
    (d) Protection of the Taxpayer.--
            (1) Limitation on principal.--The amount of any 
        guarantee under this program shall be limited to 90 
        percent of the principal amount of the underlying loan.
            (2) Collateral, fees, and premiums.--The Secretary 
        shall require applicants for the incentive program to 
        post collateral and pay such fees and premiums if 
        feasible, as determined by the Secretary, to offset 
        costs to the Government of potential defaults, and 
        agree to performance measures that the Secretary 
        considers necessary and in the best interest of 
        implementing the NextGen program.
            (3) Use of funds.--Applications for this program 
        shall be limited to equipment that is installed on 
        general aviation or commercial aircraft and is 
        necessary for communications, surveillance, navigation, 
        or other purposes determined by the Secretary to be in 
        the interests of achieving NextGen capabilities for 
        commercial and general aviation.
    (e) Termination of Authority.--The authority of the 
Secretary to issue such financial instruments under this 
section shall terminate 5 years after the date of the 
establishment of the incentive program.

SEC. 222. OPERATIONAL INCENTIVES.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall issue a report that--
            (1) identifies incentive options to encourage the 
        equipage of aircraft with NextGen technologies, 
        including a policy that gives priority to aircraft 
        equipped with ADS-B technology;
            (2) identifies the costs and benefits of each 
        option; and
            (3) includes input from industry stakeholders, 
        including passenger and cargo air carriers, aerospace 
        manufacturers, and general aviation aircraft operators.
    (b) Deadline.--The Administrator shall issue the report 
before the earlier of--
            (1) the date that is 6 months after the date of 
        enactment of this Act; or
            (2) the date on which aircraft are required to be 
        equipped with ADS-B technology pursuant to the 
        rulemaking under section 211(b).

SEC. 223. EDUCATIONAL REQUIREMENTS.

    The Administrator of the Federal Aviation Administration 
shall make payments to the Department of Defense for the 
education of dependent children of those Administration 
employees in Puerto Rico and Guam as they are subject to 
transfer by policy and practice and meet the eligibility 
requirements of section 2164(c) of title 10, United States 
Code.

SEC. 224. AIR TRAFFIC CONTROLLER STAFFING INITIATIVES AND ANALYSIS.

    As soon as practicable, and not later than 1 year after the 
date of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall--
            (1) ensure, to the extent practicable, a sufficient 
        number of contract instructors, classroom space 
        (including off-site locations as needed), and 
        simulators to allow for an increase in the number of 
        air traffic controllers at air traffic control 
        facilities;
            (2) distribute, to the extent practicable, the 
        placement of certified professional air traffic 
        controllers-in-training and developmental air traffic 
        controllers at facilities evenly across the calendar 
        year in order to avoid training bottlenecks;
            (3) initiate an analysis, to be conducted in 
        consultation with the exclusive bargaining 
        representative of air traffic controllers certified 
        under section 7111 of title 5, United States Code, of 
        scheduling processes and practices, including overtime 
        scheduling practices at those facilities;
            (4) provide, to the extent practicable and where 
        appropriate, priority to certified professional air 
        traffic controllers-in-training when filling staffing 
        vacancies at facilities;
            (5) assess training programs at air traffic control 
        facilities with below-average success rates to 
        determine if training is being carried out in 
        accordance with Administration standards, and conduct 
        exit interview analyses with all candidates to 
        determine potential weaknesses in training protocols, 
        or in the execution of such training protocols; and
            (6) prioritize, to the extent practicable, such 
        efforts to address the recommendations for the 
        facilities identified in the Department of 
        Transportation's Office of the Inspector General Report 
        Number: AV-2009-047.

SEC. 225. REPORTS ON STATUS OF GREENER SKIES PROJECT.

    (a) Initial Report.--Not later than 180 days after the date 
of the enactment of this Act, the Administrator of the Federal 
Aviation Administration shall submit to Congress a report on 
the strategy of the Administrator for implementing, on an 
accelerated basis, the NextGen operational capabilities 
produced by the Greener Skies project, as recommended in the 
final report of the RTCA NextGen Mid-Term Implementation Task 
Force that was issued on September 9, 2009.
    (b) Subsequent Reports.--
            (1) In general.--Not later than 180 days after the 
        Administrator submits to Congress the report required 
        by subsection (a) and annually thereafter until the 
        pilot program terminates, the Administrator shall 
        submit to the Committee on Commerce, Science, and 
        Transportation of the Senate and to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives a report on the progress of the 
        Administrator in carrying out the strategy described in 
        the report submitted under subsection (a).
            (2) Contents.--Each report submitted under 
        paragraph (1) shall include the following:
                    (A) A timeline for full implementation of 
                the strategy described in the report submitted 
                under subsection (a).
                    (B) A description of the progress made in 
                carrying out such strategy.
                    (C) A description of the challenges, if 
                any, encountered by the Administrator in 
                carrying out such strategy.

                           TITLE III--SAFETY

                     Subtitle A--General Provisions

SEC. 301. JUDICIAL REVIEW OF DENIAL OF AIRMAN CERTIFICATES.

    (a) Judicial Review of NTSB Decisions.--Section 44703(d) is 
amended by adding at the end the following:
    ``(3) A person who is substantially affected by an order of 
the Board under this subsection, or the Administrator if the 
Administrator decides that an order of the Board will have a 
significant adverse impact on carrying out this subtitle, may 
seek judicial review of the order under section 46110. The 
Administrator shall be made a party to the judicial review 
proceedings. The findings of fact of the Board in any such case 
are conclusive if supported by substantial evidence.''.
    (b) Conforming Amendment.--Section 1153(c) is amended by 
striking ``section 44709 or'' and inserting ``section 44703(d), 
44709, or''.

SEC. 302. RELEASE OF DATA RELATING TO ABANDONED TYPE CERTIFICATES AND 
                    SUPPLEMENTAL TYPE CERTIFICATES.

    Section 44704(a) is amended by adding at the end the 
following:
            ``(5) Release of data.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law, the Administrator may 
                make available upon request, to a person 
                seeking to maintain the airworthiness or 
                develop product improvements of an aircraft, 
                engine, propeller, or appliance, engineering 
                data in the possession of the Administration 
                relating to a type certificate or a 
                supplemental type certificate for such 
                aircraft, engine, propeller, or appliance, 
                without the consent of the owner of record, if 
                the Administrator determines that--
                            ``(i) the certificate containing 
                        the requested data has been inactive 
                        for 3 or more years, except that the 
                        Administrator may reduce this time if 
                        required to address an unsafe condition 
                        associated with the product;
                            ``(ii) after using due diligence, 
                        the Administrator is unable to find the 
                        owner of record, or the owner of 
                        record's heir, of the type certificate 
                        or supplemental type certificate; and
                            ``(iii) making such data available 
                        will enhance aviation safety.
                    ``(B) Engineering data defined.--In this 
                section, the term `engineering data' as used 
                with respect to an aircraft, engine, propeller, 
                or appliance means type design drawing and 
                specifications for the entire aircraft, engine, 
                propeller, or appliance or change to the 
                aircraft, engine, propeller, or appliance, 
                including the original design data, and any 
                associated supplier data for individual parts 
                or components approved as part of the 
                particular certificate for the aircraft, 
                engine, propeller, or appliance.
                    ``(C) Requirement to maintain data.--The 
                Administrator shall maintain engineering data 
                in the possession of the Administration 
                relating to a type certificate or a 
                supplemental type certificate that has been 
                inactive for 3 or more years.''.

SEC. 303. DESIGN AND PRODUCTION ORGANIZATION CERTIFICATES.

    (a) In General.--Section 44704(e) is amended to read as 
follows:
    ``(e) Design and Production Organization Certificates.--
            ``(1) Issuance.--Beginning January 1, 2013, the 
        Administrator may issue a certificate to a design 
        organization, production organization, or design and 
        production organization to authorize the organization 
        to certify compliance of aircraft, aircraft engines, 
        propellers, and appliances with the requirements and 
        minimum standards prescribed under section 44701(a). An 
        organization holding a certificate issued under this 
        subsection shall be known as a certified design and 
        production organization (in this subsection referred to 
        as a `CDPO').
            ``(2) Applications.--On receiving an application 
        for a CDPO certificate, the Administrator shall examine 
        and rate the organization submitting the application, 
        in accordance with regulations to be prescribed by the 
        Administrator, to determine whether the organization 
        has adequate engineering, design, and production 
        capabilities, standards, and safeguards to make 
        certifications of compliance as described in paragraph 
        (1).
            ``(3) Issuance of certificates based on cdpo 
        findings.--The Administrator may rely on certifications 
        of compliance by a CDPO when making determinations 
        under this section.
            ``(4) Public safety.--The Administrator shall 
        include in a CDPO certificate terms required in the 
        interest of safety.
            ``(5) No effect on power of revocation.--Nothing in 
        this subsection affects the authority of the Secretary 
        of Transportation to revoke a certificate.''.
    (b) Applicability.--Before January 1, 2013, the 
Administrator of the Federal Aviation Administration may 
continue to issue certificates under section 44704(e) of title 
49, United States Code, as in effect on the day before the date 
of enactment of this Act.
    (c) Clerical Amendments.--Chapter 447 is amended--
            (1) in the heading for section 44704 by striking 
        ``and design organization certificates'' and inserting 
        ``, and design and production organization 
        certificates''; and
            (2) in the analysis for such chapter by striking 
        the item relating to section 44704 and inserting the 
        following:

``44704. Type certificates, production certificates, airworthiness 
          certificates, and design and production organization 
          certificates.''.

SEC. 304. CABIN CREW COMMUNICATION.

    (a) In General.--Section 44728 is amended--
            (1) by redesignating subsection (f) as subsection 
        (g); and
            (2) by inserting after subsection (e) the 
        following:
    ``(f) Minimum Language Skills.--
            ``(1) In general.--No person may serve as a flight 
        attendant aboard an aircraft of an air carrier, unless 
        that person has demonstrated to an individual qualified 
        to determine proficiency the ability to read, speak, 
        and write English well enough to--
                    ``(A) read material written in English and 
                comprehend the information;
                    ``(B) speak and understand English 
                sufficiently to provide direction to, and 
                understand and answer questions from, English-
                speaking individuals;
                    ``(C) write incident reports and statements 
                and log entries and statements; and
                    ``(D) carry out written and oral 
                instructions regarding the proper performance 
                of their duties.
            ``(2) Foreign flights.--The requirements of 
        paragraph (1) do not apply to a flight attendant 
        serving solely between points outside the United 
        States.''.
    (b) Facilitation.--The Administrator of the Federal 
Aviation Administration shall work with air carriers to 
facilitate compliance with the requirements of section 44728(f) 
of title 49, United States Code (as amended by this section).

SEC. 305. LINE CHECK EVALUATIONS.

    Section 44729(h) is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph 
        (2).

SEC. 306. SAFETY OF AIR AMBULANCE OPERATIONS.

    (a) In General.--Chapter 447 is amended by adding at the 
end the following:

``Sec. 44730. Helicopter air ambulance operations

    ``(a) Compliance Regulations.--
            ``(1) In general.--Except as provided in paragraph 
        (2), not later than 180 days after the date of 
        enactment of this section, a part 135 certificate 
        holder providing air ambulance services shall comply, 
        whenever medical personnel are onboard the aircraft, 
        with regulations pertaining to weather minimums and 
        flight and duty time under part 135.
            ``(2) Exception.--If a certificate holder described 
        in paragraph (1) is operating, or carrying out 
        training, under instrument flight rules, the weather 
        reporting requirement at the destination shall not 
        apply if authorized by the Administrator of the Federal 
        Aviation Administration.
    ``(b) Final Rule.--Not later than June 1, 2012, the 
Administrator shall issue a final rule, with respect to the 
notice of proposed rulemaking published in the Federal Register 
on October 12, 2010 (75 Fed. Reg. 62640), to improve the safety 
of flight crewmembers, medical personnel, and passengers 
onboard helicopters providing air ambulance services under part 
135.
    ``(c) Matters To Be Addressed.--In conducting the 
rulemaking proceeding under subsection (b), the Administrator 
shall address the following:
            ``(1) Flight request and dispatch procedures, 
        including performance-based flight dispatch procedures.
            ``(2) Pilot training standards, including 
        establishment of training standards in--
                    ``(A) preventing controlled flight into 
                terrain; and
                    ``(B) recovery from inadvertent flight into 
                instrument meteorological conditions.
            ``(3) Safety-enhancing technology and equipment, 
        including--
                    ``(A) helicopter terrain awareness and 
                warning systems;
                    ``(B) radar altimeters; and
                    ``(C) devices that perform the function of 
                flight data recorders and cockpit voice 
                recorders, to the extent feasible.
            ``(4) Such other matters as the Administrator 
        considers appropriate.
    ``(d) Minimum Requirements.--In issuing a final rule under 
subsection (b), the Administrator, at a minimum, shall provide 
for the following:
            ``(1) Flight risk evaluation program.--The 
        Administrator shall ensure that a part 135 certificate 
        holder providing helicopter air ambulance services--
                    ``(A) establishes a flight risk evaluation 
                program, based on FAA Notice 8000.301 issued by 
                the Administration on August 1, 2005, including 
                any updates thereto;
                    ``(B) as part of the flight risk evaluation 
                program, develops a checklist for use by pilots 
                in determining whether a flight request should 
                be accepted; and
                    ``(C) requires the pilots of the 
                certificate holder to use the checklist.
            ``(2) Operational control center.--The 
        Administrator shall ensure that a part 135 certificate 
        holder providing helicopter air ambulance services 
        using 10 or more helicopters has an operational control 
        center that meets such requirements as the 
        Administrator may prescribe.
    ``(e) Subsequent Rulemaking.--
            ``(1) In general.--Upon completion of the 
        rulemaking required under subsection (b), the 
        Administrator shall conduct a follow-on rulemaking to 
        address the following:
                    ``(A) Pilot training standards, including--
                            ``(i) mandatory training 
                        requirements, including a minimum time 
                        for completing the training 
                        requirements;
                            ``(ii) training subject areas, such 
                        as communications procedures and 
                        appropriate technology use; and
                            ``(iii) establishment of training 
                        standards in--
                                    ``(I) crew resource 
                                management;
                                    ``(II) flight risk 
                                evaluation;
                                    ``(III) operational control 
                                of the pilot in command; and
                                    ``(IV) use of flight 
                                simulation training devices and 
                                line-oriented flight training.
                    ``(B) Use of safety equipment that should 
                be worn or used by flight crewmembers and 
                medical personnel on a flight, including the 
                possible use of shoulder harnesses, helmets, 
                seatbelts, and fire resistant clothing to 
                enhance crash survivability.
            ``(2) Deadlines.--Not later than 180 days after the 
        date of issuance of a final rule under subsection (b), 
        the Administrator shall initiate the rulemaking under 
        this subsection.
            ``(3) Limitation on construction.--Nothing in this 
        subsection shall be construed to require the 
        Administrator to propose or finalize any rule that 
        would derogate or supersede the rule required to be 
        finalized under subsection (b).
    ``(f) Definitions.--In this section, the following 
definitions apply:
            ``(1) Part 135.--The term `part 135' means part 135 
        of title 14, Code of Federal Regulations.
            ``(2) Part 135 certificate holder.--The term `part 
        135 certificate holder' means a person holding an 
        operating certificate issued under part 119 of title 
        14, Code of Federal Regulations, that is authorized to 
        conduct civil helicopter air ambulance operations under 
        part 135.

``Sec. 44731. Collection of data on helicopter air ambulance operations

    ``(a) In General.--The Administrator of the Federal 
Aviation Administration shall require a part 135 certificate 
holder providing helicopter air ambulance services to submit to 
the Administrator, not later than 1 year after the date of 
enactment of this section, and annually thereafter, a report 
containing, at a minimum, the following data:
            ``(1) The number of helicopters that the 
        certificate holder uses to provide helicopter air 
        ambulance services and the base locations of the 
        helicopters.
            ``(2) The number of flights and hours flown, by 
        registration number, during which helicopters operated 
        by the certificate holder were providing helicopter air 
        ambulance services.
            ``(3) The number of flight requests for a 
        helicopter providing air ambulance services that were 
        accepted or declined by the certificate holder and the 
        type of each such flight request (such as scene 
        response, interfacility transport, organ transport, or 
        ferry or repositioning flight).
            ``(4) The number of accidents, if any, involving 
        helicopters operated by the certificate holder while 
        providing air ambulance services and a description of 
        the accidents.
            ``(5) The number of flights and hours flown under 
        instrument flight rules by helicopters operated by the 
        certificate holder while providing air ambulance 
        services.
            ``(6) The time of day of each flight flown by 
        helicopters operated by the certificate holder while 
        providing air ambulance services.
            ``(7) The number of incidents, if any, in which a 
        helicopter was not directly dispatched and arrived to 
        transport patients but was not utilized for patient 
        transport.
    ``(b) Reporting Period.--Data contained in a report 
submitted by a part 135 certificate holder under subsection (a) 
shall relate to such reporting period as the Administrator 
determines appropriate.
    ``(c) Database.--Not later than 180 days after the date of 
enactment of this section, the Administrator shall develop a 
method to collect and store the data collected under subsection 
(a), including a method to protect the confidentiality of any 
trade secret or proprietary information provided in response to 
this section.
    ``(d) Report to Congress.--Not later than 2 years after the 
date of enactment of this section, and annually thereafter, the 
Administrator shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a report containing a summary of the data collected 
under subsection (a).
    ``(e) Definitions.--In this section, the terms `part 135' 
and `part 135 certificate holder' have the meanings given such 
terms in section 44730.''.
    (b) Authorized Expenditures.--Section 106(k)(2)(C) (as 
redesignated by this Act) is amended by inserting before the 
period the following: ``and the development and maintenance of 
helicopter approach procedures''.
    (c) Clerical Amendment.--The analysis for chapter 447 is 
amended by adding at the end the following:

``44730. Helicopter air ambulance operations.
``44731. Collection of data on helicopter air ambulance operations.''.

SEC. 307. PROHIBITION ON PERSONAL USE OF ELECTRONIC DEVICES ON FLIGHT 
                    DECK.

    (a) In General.--Chapter 447 (as amended by this Act) is 
further amended by adding at the end the following:

``Sec. 44732. Prohibition on personal use of electronic devices on 
                    flight deck

    ``(a) In General.--It is unlawful for a flight crewmember 
of an aircraft used to provide air transportation under part 
121 of title 14, Code of Federal Regulations, to use a personal 
wireless communications device or laptop computer while at the 
flight crewmember's duty station on the flight deck of such an 
aircraft while the aircraft is being operated.
    ``(b) Exceptions.--Subsection (a) shall not apply to the 
use of a personal wireless communications device or laptop 
computer for a purpose directly related to operation of the 
aircraft, or for emergency, safety-related, or employment-
related communications, in accordance with procedures 
established by the air carrier and the Administrator of the 
Federal Aviation Administration.
    ``(c) Enforcement.--In addition to the penalties provided 
under section 46301 applicable to any violation of this 
section, the Administrator of the Federal Aviation 
Administration may enforce compliance with this section under 
section 44709 by amending, modifying, suspending, or revoking a 
certificate under this chapter.
    ``(d) Personal Wireless Communications Device Defined.--In 
this section, the term `personal wireless communications 
device' means a device through which personal wireless services 
(as defined in section 332(c)(7)(C)(i) of the Communications 
Act of 1934 (47 U.S.C. 332(c)(7)(C)(i))) are transmitted.''.
    (b) Penalty.--Section 44711(a) is amended--
            (1) by striking ``or'' after the semicolon in 
        paragraph (8);
            (2) by striking ``title.'' in paragraph (9) and 
        inserting ``title; or''; and
            (3) by adding at the end the following:
            ``(10) violate section 44732 or any regulation 
        issued thereunder.''.
    (c) Conforming Amendment.--The analysis for chapter 447 (as 
amended by this Act) is further amended by adding at the end 
the following:

``44732. Prohibition on personal use of electronic devices on flight 
          deck.''.

    (d) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall initiate a rulemaking procedure 
for regulations to carry out section 44732 of title 49, United 
States Code (as added by this section), and shall issue a final 
rule thereunder not later than 2 years after the date of 
enactment of this Act.
    (e) Study.--
            (1) In general.--The Administrator of the Federal 
        Aviation Administration shall review relevant air 
        carrier data and carry out a study--
                    (A) to identify common sources of 
                distraction for the flight crewmembers on the 
                flight deck of a commercial aircraft; and
                    (B) to determine the safety impacts of such 
                distractions.
            (2) Report to congress.--Not later than 1 year 
        after the date of enactment of this Act, the 
        Administrator 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 that contains--
                    (A) the findings of the study conducted 
                under paragraph (1); and
                    (B) recommendations regarding how to reduce 
                distractions for flight crewmembers on the 
                flight deck of a commercial aircraft.

SEC. 308. INSPECTION OF REPAIR STATIONS LOCATED OUTSIDE THE UNITED 
                    STATES.

    (a) In General.--Chapter 447 (as amended by this Act) is 
further amended by adding at the end the following:

``Sec. 44733. Inspection of repair stations located outside the United 
                    States

    ``(a) In General.--Not later than 1 year after the date of 
enactment of this section, the Administrator of the Federal 
Aviation Administration shall establish and implement a safety 
assessment system for all part 145 repair stations based on the 
type, scope, and complexity of work being performed. The system 
shall--
            ``(1) ensure that repair stations located outside 
        the United States are subject to appropriate 
        inspections based on identified risks and consistent 
        with existing United States requirements;
            ``(2) consider inspection results and findings 
        submitted by foreign civil aviation authorities 
        operating under a maintenance safety or maintenance 
        implementation agreement with the United States; and
            ``(3) require all maintenance safety or maintenance 
        implementation agreements to provide an opportunity for 
        the Administration to conduct independent inspections 
        of covered part 145 repair stations when safety 
        concerns warrant such inspections.
    ``(b) Notice to Congress of Negotiations.--The 
Administrator shall notify the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives not later than 30 days after initiating formal 
negotiations with foreign aviation authorities or other 
appropriate foreign government agencies on a new maintenance 
safety or maintenance implementation agreement.
    ``(c) Annual Report.--The Administrator shall publish an 
annual report on the Administration's oversight of part 145 
repair stations and implementation of the safety assessment 
system required under subsection (a). The report shall--
            ``(1) describe in detail any improvements in the 
        Administration's ability to identify and track where 
        part 121 air carrier repair work is performed;
            ``(2) include a staffing model to determine the 
        best placement of inspectors and the number of 
        inspectors needed;
            ``(3) describe the training provided to inspectors; 
        and
            ``(4) include an assessment of the quality of 
        monitoring and surveillance by the Administration of 
        work performed by its inspectors and the inspectors of 
        foreign authorities operating under a maintenance 
        safety or maintenance implementation agreement.
    ``(d) Alcohol and Controlled Substances Testing Program 
Requirements.--
            ``(1) In general.--The Secretary of State and the 
        Secretary of Transportation, acting jointly, shall 
        request the governments of foreign countries that are 
        members of the International Civil Aviation 
        Organization to establish international standards for 
        alcohol and controlled substances testing of persons 
        that perform safety-sensitive maintenance functions on 
        commercial air carrier aircraft.
            ``(2) Application to part 121 aircraft work.--Not 
        later than 1 year after the date of enactment of this 
        section, the Administrator shall promulgate a proposed 
        rule requiring that all part 145 repair station 
        employees responsible for safety-sensitive maintenance 
        functions on part 121 air carrier aircraft are subject 
        to an alcohol and controlled substances testing program 
        determined acceptable by the Administrator and 
        consistent with the applicable laws of the country in 
        which the repair station is located.
    ``(e) Annual Inspections.--The Administrator shall ensure 
that part 145 repair stations located outside the United States 
are inspected annually by Federal Aviation Administration 
safety inspectors, without regard to where the station is 
located, in a manner consistent with United States obligations 
under international agreements. The Administrator may carry out 
inspections in addition to the annual inspection required under 
this subsection based on identified risks.
    ``(f) Definitions.--In this section, the following 
definitions apply:
            ``(1) Part 121 air carrier.--The term `part 121 air 
        carrier' means an air carrier that holds a certificate 
        issued under part 121 of title 14, Code of Federal 
        Regulations.
            ``(2) Part 145 repair station.--The term `part 145 
        repair station' means a repair station that holds a 
        certificate issued under part 145 of title 14, Code of 
        Federal Regulations.''.
    (b) Conforming Amendment.--The analysis for chapter 447 (as 
amended by this Act) is further amended by adding at the end 
the following:

``44733. Inspection of repair stations located outside the United 
          States.''.

SEC. 309. ENHANCED TRAINING FOR FLIGHT ATTENDANTS.

    (a) In General.--Chapter 447 (as amended by this Act) is 
further amended by adding at the end the following:

``Sec. 44734. Training of flight attendants

    ``(a) Training Required.--In addition to other training 
required under this chapter, each air carrier shall provide to 
flight attendants employed or contracted by such air carrier 
initial and annual training regarding--
            ``(1) serving alcohol to passengers;
            ``(2) recognizing intoxicated passengers; and
            ``(3) dealing with disruptive passengers.
    ``(b) Situational Training.--In carrying out the training 
required under subsection (a), each air carrier shall provide 
to flight attendants situational training on the proper method 
for dealing with intoxicated passengers who act in a 
belligerent manner.
    ``(c) Definitions.--In this section, the following 
definitions apply:
            ``(1) Air carrier.--The term `air carrier' means a 
        person, including a commercial enterprise, that has 
        been issued an air carrier operating certificate under 
        section 44705.
            ``(2) Flight attendant.--The term `flight 
        attendant' has the meaning given that term in section 
        44728(g).''.
    (b) Clerical Amendment.--The analysis for chapter 447 (as 
amended by this Act) is further amended by adding at the end 
the following:

``44734. Training of flight attendants.''.

SEC. 310. LIMITATION ON DISCLOSURE OF SAFETY INFORMATION.

    (a) In General.--Chapter 447 (as amended by this Act) is 
further amended by adding at the end the following:

``Sec. 44735. Limitation on disclosure of safety information

    ``(a) In General.--Except as provided by subsection (c), a 
report, data, or other information described in subsection (b) 
shall not be disclosed to the public by the Administrator of 
the Federal Aviation Administration pursuant to section 
552(b)(3)(B) of title 5 if the report, data, or other 
information is submitted to the Federal Aviation Administration 
voluntarily and is not required to be submitted to the 
Administrator under any other provision of law.
    ``(b) Applicability.--The limitation established by 
subsection (a) shall apply to the following:
            ``(1) Reports, data, or other information developed 
        under the Aviation Safety Action Program.
            ``(2) Reports, data, or other information produced 
        or collected under the Flight Operational Quality 
        Assurance Program.
            ``(3) Reports, data, or other information developed 
        under the Line Operations Safety Audit Program.
            ``(4) Reports, data, or other information produced 
        or collected for purposes of developing and 
        implementing a safety management system acceptable to 
        the Administrator.
            ``(5) Reports, analyses, and directed studies, 
        based in whole or in part on reports, data, or other 
        information described in paragraphs (1) through (4), 
        including those prepared under the Aviation Safety 
        Information Analysis and Sharing Program (or any 
        successor program).
    ``(c) Exception for De-identified Information.--
            ``(1) In general.--The limitation established by 
        subsection (a) shall not apply to a report, data, or 
        other information if the information contained in the 
        report, data, or other information has been de-
        identified.
            ``(2) De-identified defined.--In this subsection, 
        the term `de-identified' means the process by which all 
        information that is likely to establish the identity of 
        the specific persons or entities submitting reports, 
        data, or other information is removed from the reports, 
        data, or other information.''.
    (b) Clerical Amendment.--The analysis for such chapter (as 
amended by this Act) is further amended by adding at the end 
the following:

``44735. Limitation on disclosure of safety information.''.
    (c) Technical Correction.--Section 44703(i)(9)(B)(i) is 
amended by striking ``section 552 of title 5'' and inserting 
``section 552(b)(3)(B) of title 5''.

SEC. 311. PROHIBITION AGAINST AIMING A LASER POINTER AT AN AIRCRAFT.

    (a) Offense.--Chapter 2 of title 18, United States Code, is 
amended by inserting after section 39 the following:

``Sec. 39A. Aiming a laser pointer at an aircraft

    ``(a) Offense.--Whoever knowingly aims the beam of a laser 
pointer at an aircraft in the special aircraft jurisdiction of 
the United States, or at the flight path of such an aircraft, 
shall be fined under this title or imprisoned not more than 5 
years, or both.
    ``(b) Laser Pointer Defined.--As used in this section, the 
term `laser pointer' means any device designed or used to 
amplify electromagnetic radiation by stimulated emission that 
emits a beam designed to be used by the operator as a pointer 
or highlighter to indicate, mark, or identify a specific 
position, place, item, or object.
    ``(c) Exceptions.--This section does not prohibit aiming a 
beam of a laser pointer at an aircraft, or the flight path of 
such an aircraft, by--
            ``(1) an authorized individual in the conduct of 
        research and development or flight test operations 
        conducted by an aircraft manufacturer, the Federal 
        Aviation Administration, or any other person authorized 
        by the Federal Aviation Administration to conduct such 
        research and development or flight test operations;
            ``(2) members or elements of the Department of 
        Defense or Department of Homeland Security acting in an 
        official capacity for the purpose of research, 
        development, operations, testing, or training; or
            ``(3) by an individual using a laser emergency 
        signaling device to send an emergency distress signal.
    ``(d) Authority To Establish Additional Exceptions by 
Regulation.--The Attorney General, in consultation with the 
Secretary of Transportation, may provide by regulation, after 
public notice and comment, such additional exceptions to this 
section as may be necessary and appropriate. The Attorney 
General shall provide written notification of any proposed 
regulations under this section to the Committees on the 
Judiciary of the Senate and the House of Representatives, the 
Committee on Commerce, Science, and Transportation of the 
Senate, and the Committee on Transportation and Infrastructure 
of the House of Representatives, not less than 90 days before 
such regulations become final.''.
    (b) Clerical Amendment.--The analysis for such chapter is 
amended--
            (1) by moving the item relating to section 39 after 
        the item relating to section 38; and
            (2) by inserting after the item relating to section 
        39 the following:

``39A. Aiming a laser pointer at an aircraft''.

SEC. 312. AIRCRAFT CERTIFICATION PROCESS REVIEW AND REFORM.

    (a) In General.--The Administrator of the Federal Aviation 
Administration, in consultation with representatives of the 
aviation industry, shall conduct an assessment of the 
certification and approval process under section 44704 of title 
49, United States Code.
    (b) Contents.--In conducting the assessment, the 
Administrator shall consider--
            (1) the expected number of applications for product 
        certifications and approvals the Administrator will 
        receive under section 44704 of such title in the 1-
        year, 5-year, and 10-year periods following the date of 
        enactment of this Act;
            (2) process reforms and improvements necessary to 
        allow the Administrator to review and approve the 
        applications in a fair and timely fashion;
            (3) the status of recommendations made in previous 
        reports on the Administration's certification process;
            (4) methods for enhancing the effective use of 
        delegation systems, including organizational 
        designation authorization;
            (5) methods for training the Administration's field 
        office employees in the safety management system and 
        auditing; and
            (6) the status of updating airworthiness 
        requirements, including implementing recommendations in 
        the Administration's report entitled ``Part 23--Small 
        Airplane Certification Process Study'' (OK-09-3468, 
        dated July 2009).
    (c) Recommendations.--In conducting the assessment, the 
Administrator shall make recommendations to improve efficiency 
and reduce costs through streamlining and reengineering the 
certification process under section 44704 of such title to 
ensure that the Administrator can conduct certifications and 
approvals under such section in a manner that supports and 
enables the development of new products and technologies and 
the global competitiveness of the United States aviation 
industry.
    (d) Report to Congress.--Not later than 180 days after the 
date of enactment of this Act, the Administrator shall submit 
to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
results of the assessment, together with an explanation of how 
the Administrator will implement recommendations made under 
subsection (c) and measure the effectiveness of the 
recommendations.
    (e) Implementation of Recommendations.--Not later than 1 
year after the date of enactment of this Act, the Administrator 
shall begin to implement the recommendations made under 
subsection (c).

SEC. 313. CONSISTENCY OF REGULATORY INTERPRETATION.

    (a) Establishment of Advisory Panel.--Not later than 90 
days after the date of enactment of this Act, the Administrator 
of the Federal Aviation Administration shall establish an 
advisory panel comprised of both Government and industry 
representatives to--
            (1) review the October 2010 report by the 
        Government Accountability Office on certification and 
        approval processes (GAO-11-14); and
            (2) develop recommendations to address the findings 
        in the report and other concerns raised by interested 
        parties, including representatives of the aviation 
        industry.
    (b) Matters To Be Considered.--The advisory panel shall--
            (1) determine the root causes of inconsistent 
        interpretation of regulations by the Administration's 
        Flight Standards Service and Aircraft Certification 
        Service;
            (2) develop recommendations to improve the 
        consistency of interpreting regulations by the 
        Administration's Flight Standards Service and Aircraft 
        Certification Service; and
            (3) develop recommendations to improve 
        communications between the Administration's Flight 
        Standards Service and Aircraft Certification Service 
        and applicants and certificate and approval holders for 
        the identification and resolution of potentially 
        adverse issues in an expeditious and fair manner.
    (c) Report to Congress.--Not later than 1 year after the 
date of enactment of this Act, the Administrator shall transmit 
to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
findings of the advisory panel, together with an explanation of 
how the Administrator will implement the recommendations of the 
advisory panel and measure the effectiveness of the 
recommendations.

SEC. 314. RUNWAY SAFETY.

    (a) Strategic Runway Safety Plan.--
            (1) In general.--Not later than 6 months after the 
        date of enactment of this Act, the Administrator of the 
        Federal Aviation Administration shall develop and 
        submit to Congress a report containing a strategic 
        runway safety plan.
            (2) Contents of plan.--The strategic runway safety 
        plan--
                    (A) shall include, at a minimum--
                            (i) goals to improve runway safety;
                            (ii) near- and long-term actions 
                        designed to reduce the severity, 
                        number, and rate of runway incursions, 
                        losses of standard separation, and 
                        operational errors;
                            (iii) time frames and resources 
                        needed for the actions described in 
                        clause (ii);
                            (iv) a continuous evaluative 
                        process to track performance toward the 
                        goals referred to in clause (i); and
                            (v) a review with respect to runway 
                        safety of every commercial service 
                        airport (as defined in section 47102 of 
                        title 49, United States Code) in the 
                        United States and proposed action to 
                        improve airport lighting, provide 
                        better signs, and improve runway and 
                        taxiway markings at those airports; and
                    (B) shall address the increased runway 
                safety risk associated with the expected 
                increased volume of air traffic.
    (b) Process.--Not later than 6 months after the date of 
enactment of this Act, the Administrator shall develop a 
process for tracking and investigating operational errors, 
losses of standard separation, and runway incursions that 
includes procedures for--
            (1) identifying who is responsible for tracking 
        operational errors, losses of standard separation, and 
        runway incursions, including a process for lower level 
        employees to report to higher supervisory levels and 
        for frontline managers to receive the information in a 
        timely manner;
            (2) conducting periodic random audits of the 
        oversight process; and
            (3) ensuring proper accountability.
    (c) Plan for Installation and Deployment of Systems To 
Provide Alerts of Potential Runway Incursions.--Not later than 
June 30, 2012, the Administrator shall submit to Congress a 
report containing a plan for the installation and deployment of 
systems to alert air traffic controllers or flight crewmembers, 
or both, of potential runway incursions. The plan shall be 
integrated into the annual NextGen Implementation Plan of the 
Administration or any successor document.

SEC. 315. FLIGHT STANDARDS EVALUATION PROGRAM.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall modify the Flight Standards 
Evaluation Program--
            (1) to include periodic and random reviews as part 
        of the Administration's oversight of air carriers; and
            (2) to prohibit an individual from participating in 
        a review or audit of an office with responsibility for 
        an air carrier under the program if the individual, at 
        any time in the 5-year period preceding the date of the 
        review or audit, had responsibility for inspecting, or 
        overseeing the inspection of, the operations of that 
        carrier.
    (b) Annual Report to Congress.--Not later than 1 year after 
the date of enactment of this Act, and annually thereafter, the 
Administrator 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 the Flight Standards Evaluation 
Program, including the Administrator's findings and 
recommendations with respect to the program.
    (c) Flight Standards Evaluation Program Defined.--In this 
section, the term ``Flight Standards Evaluation Program'' means 
the program established by the Federal Aviation Administration 
in FS 1100.1B CHG3, including any subsequent revisions thereto.

SEC. 316. COCKPIT SMOKE.

    (a) Study.--The Comptroller General of the United States 
shall conduct a study on the effectiveness of oversight 
activities of the Federal Aviation Administration relating to 
the use of new technologies to prevent or mitigate the effects 
of dense, continuous smoke in the cockpit of a commercial 
aircraft.
    (b) Report to Congress.--Not later than 18 months after the 
date of enactment of this Act, the Comptroller General shall 
submit to Congress a report on the results of the study.

SEC. 317. OFF-AIRPORT, LOW-ALTITUDE AIRCRAFT WEATHER OBSERVATION 
                    TECHNOLOGY.

    (a) Study.--The Administrator of the Federal Aviation 
Administration shall conduct a review of off-airport, low-
altitude aircraft weather observation technologies.
    (b) Specific Review.--The review shall include, at a 
minimum, an examination of off-airport, low-altitude weather 
reporting needs, an assessment of technical alternatives 
(including automated weather observation stations), an 
investment analysis, and recommendations for improving weather 
reporting.
    (c) Report to Congress.--Not later than 1 year after the 
date of enactment of this Act, the Administrator shall submit 
to Congress a report containing the results of the review.

SEC. 318. FEASIBILITY OF REQUIRING HELICOPTER PILOTS TO USE NIGHT 
                    VISION GOGGLES.

    (a) Study.--The Administrator of the Federal Aviation 
Administration shall carry out a study on the feasibility of 
requiring pilots of helicopters providing air ambulance 
services under part 135 of title 14, Code of Federal 
Regulations, to use night vision goggles during nighttime 
operations.
    (b) Considerations.--In conducting the study, the 
Administrator shall consult with owners and operators of 
helicopters providing air ambulance services under such part 
135 and aviation safety professionals to determine the 
benefits, financial considerations, and risks associated with 
requiring the use of night vision goggles.
    (c) Report to Congress.--Not later than 1 year after the 
date of enactment of this Act, the Administrator shall submit 
to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
results of the study.

SEC. 319. MAINTENANCE PROVIDERS.

    (a) Regulations.--Not later than 3 years after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall issue regulations requiring that 
covered work on an aircraft used to provide air transportation 
under part 121 of title 14, Code of Federal Regulations, be 
performed by persons in accordance with subsection (b).
    (b) Persons Authorized To Perform Certain Work.--A person 
may perform covered work on aircraft used to provide air 
transportation under part 121 of title 14, Code of Federal 
Regulations, only if the person is employed by--
            (1) a part 121 air carrier;
            (2) a part 145 repair station or a person 
        authorized under section 43.17 of title 14, Code of 
        Federal Regulations (or any successor regulation); or
            (3) subject to subsection (c), a person that--
                    (A) provides contract maintenance workers, 
                services, or maintenance functions to a part 
                121 air carrier or part 145 repair station; and
                    (B) meets the requirements of the part 121 
                air carrier or the part 145 repair station, as 
                appropriate.
    (c) Terms and Conditions.--Covered work performed by a 
person who is employed by a person described in subsection 
(b)(3) shall be subject to the following terms and conditions:
            (1) The applicable part 121 air carrier shall be 
        directly in charge of the covered work being performed.
            (2) The covered work shall be carried out in 
        accordance with the part 121 air carrier's maintenance 
        manual.
            (3) The person shall carry out the covered work 
        under the supervision and control of the part 121 air 
        carrier directly in charge of the covered work being 
        performed on its aircraft.
    (d) Definitions.--In this section, the following 
definitions apply:
            (1) Covered work.--The term ``covered work'' means 
        any of the following:
                    (A) Essential maintenance that could result 
                in a failure, malfunction, or defect 
                endangering the safe operation of an aircraft 
                if not performed properly or if improper parts 
                or materials are used.
                    (B) Regularly scheduled maintenance.
                    (C) A required inspection item (as defined 
                by the Administrator).
            (2) Part 121 air carrier.--The term ``part 121 air 
        carrier'' means an air carrier that holds a certificate 
        issued under part 121 of title 14, Code of Federal 
        Regulations.
            (3) Part 145 repair station.--The term ``part 145 
        repair station'' means a repair station that holds a 
        certificate issued under part 145 of title 14, Code of 
        Federal Regulations.
            (4) Person.--The term ``person'' means an 
        individual, firm, partnership, corporation, company, or 
        association that performs maintenance, preventative 
        maintenance, or alterations.

SEC. 320. STUDY OF AIR QUALITY IN AIRCRAFT CABINS.

    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall initiate a study of air quality 
in aircraft cabins to--
            (1) assess bleed air quality on the full range of 
        commercial aircraft operating in the United States;
            (2) identify oil-based contaminants, hydraulic 
        fluid toxins, and other air toxins that appear in cabin 
        air and measure the quantity and prevalence, or 
        absence, of those toxins through a comprehensive 
        sampling program;
            (3) determine the specific amount and duration of 
        toxic fumes present in aircraft cabins that constitutes 
        a health risk to passengers;
            (4) develop a systematic reporting standard for 
        smoke and fume events in aircraft cabins; and
            (5) identify the potential health risks to 
        individuals exposed to toxic fumes during flight.
    (b) Authority To Monitor Air in Aircraft Cabins.--For 
purposes of conducting the study required by subsection (a), 
the Administrator of the Federal Aviation Administration shall 
require domestic air carriers to allow air quality monitoring 
on their aircraft in a manner that imposes no significant costs 
on the air carrier and does not interfere with the normal 
operation of the aircraft.

SEC. 321. IMPROVED PILOT LICENSES.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall issue improved pilot licenses consistent 
with requirements under this section.
    (b) Timing.--Not later than 270 days after the date of 
enactment of this Act, the Administrator shall--
            (1) provide to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate a report containing--
                    (A) a timeline for the phased issuance of 
                improved pilot licenses under this section that 
                ensures all pilots are issued such licenses not 
                later than 2 years after the initial issuance 
                of such licenses under paragraph (2); and
                    (B) recommendations for the Federal 
                installation of infrastructure necessary to 
                take advantage of information contained on 
                improved pilot licenses issued under this 
                section, which identify the necessary 
                infrastructure, indicate the Federal entity 
                that should be responsible for installing, 
                funding, and operating the infrastructure at 
                airport sterile areas, and provide an estimate 
                of the costs of the infrastructure; and
            (2) begin to issue improved pilot licenses 
        consistent with the requirements of title 49, United 
        States Code, and title 14, Code of Federal Regulations.
    (c) Requirements.--Improved pilot licenses issued under 
this section shall--
            (1) be resistant to tampering, alteration, and 
        counterfeiting;
            (2) include a photograph of the individual to whom 
        the license is issued for identification purposes; and
            (3) be smart cards that--
                    (A) accommodate iris and fingerprint 
                biometric identifiers; and
                    (B) are compliant with Federal Information 
                Processing Standards-201 (FIPS-201) or Personal 
                Identity Verification-Interoperability 
                Standards (PIV-I) for processing through 
                security checkpoints into airport sterile 
                areas.
    (d) Tampering.--To the extent practicable, the 
Administrator shall develop methods to determine or reveal 
whether any component or security feature of an improved pilot 
license issued under this section has been tampered with, 
altered, or counterfeited.
    (e) Use of Designees.--The Administrator may use designees 
to carry out subsection (a) to the extent practicable in order 
to minimize the burdens on pilots.
    (f) Report to Congress.--
            (1) In general.--Not later than 1 year after the 
        date of enactment of this Act, and annually thereafter, 
        the Administrator shall submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate a report on the 
        issuance of improved pilot licenses under this section.
            (2) Expiration.--The Administrator shall not be 
        required to submit annual reports under this subsection 
        after the date on which the Administrator has issued 
        improved pilot licenses under this section to all 
        pilots.

                 Subtitle B--Unmanned Aircraft Systems

SEC. 331. DEFINITIONS.

    In this subtitle, the following definitions apply:
            (1) Arctic.--The term ``Arctic'' means the United 
        States zone of the Chukchi Sea, Beaufort Sea, and 
        Bering Sea north of the Aleutian chain.
            (2) Certificate of waiver; certificate of 
        authorization.--The terms ``certificate of waiver'' and 
        ``certificate of authorization'' mean a Federal 
        Aviation Administration grant of approval for a 
        specific flight operation.
            (3) Permanent areas.--The term ``permanent areas'' 
        means areas on land or water that provide for launch, 
        recovery, and operation of small unmanned aircraft.
            (4) Public unmanned aircraft system.--The term 
        ``public unmanned aircraft system'' means an unmanned 
        aircraft system that meets the qualifications and 
        conditions required for operation of a public aircraft 
        (as defined in section 40102 of title 49, United States 
        Code).
            (5) Sense and avoid capability.--The term ``sense 
        and avoid capability'' means the capability of an 
        unmanned aircraft to remain a safe distance from and to 
        avoid collisions with other airborne aircraft.
            (6) Small unmanned aircraft.--The term ``small 
        unmanned aircraft'' means an unmanned aircraft weighing 
        less than 55 pounds.
            (7) Test range.--The term ``test range'' means a 
        defined geographic area where research and development 
        are conducted.
            (8) Unmanned aircraft.--The term ``unmanned 
        aircraft'' means an aircraft that is operated without 
        the possibility of direct human intervention from 
        within or on the aircraft.
            (9) Unmanned aircraft system.--The term ``unmanned 
        aircraft system'' means an unmanned aircraft and 
        associated elements (including communication links and 
        the components that control the unmanned aircraft) that 
        are required for the pilot in command to operate safely 
        and efficiently in the national airspace system.

SEC. 332. INTEGRATION OF CIVIL UNMANNED AIRCRAFT SYSTEMS INTO NATIONAL 
                    AIRSPACE SYSTEM.

    (a) Required Planning for Integration.--
            (1) Comprehensive plan.--Not later than 270 days 
        after the date of enactment of this Act, the Secretary 
        of Transportation, in consultation with representatives 
        of the aviation industry, Federal agencies that employ 
        unmanned aircraft systems technology in the national 
        airspace system, and the unmanned aircraft systems 
        industry, shall develop a comprehensive plan to safely 
        accelerate the integration of civil unmanned aircraft 
        systems into the national airspace system.
            (2) Contents of plan.--The plan required under 
        paragraph (1) shall contain, at a minimum, 
        recommendations or projections on--
                    (A) the rulemaking to be conducted under 
                subsection (b), with specific recommendations 
                on how the rulemaking will--
                            (i) define the acceptable standards 
                        for operation and certification of 
                        civil unmanned aircraft systems;
                            (ii) ensure that any civil unmanned 
                        aircraft system includes a sense and 
                        avoid capability; and
                            (iii) establish standards and 
                        requirements for the operator and pilot 
                        of a civil unmanned aircraft system, 
                        including standards and requirements 
                        for registration and licensing;
                    (B) the best methods to enhance the 
                technologies and subsystems necessary to 
                achieve the safe and routine operation of civil 
                unmanned aircraft systems in the national 
                airspace system;
                    (C) a phased-in approach to the integration 
                of civil unmanned aircraft systems into the 
                national airspace system;
                    (D) a timeline for the phased-in approach 
                described under subparagraph (C);
                    (E) creation of a safe
                    (F) airspace designation for cooperative 
                manned and unmanned flight operations in the 
                national airspace system;
                    (G) establishment of a process to develop 
                certification, flight standards, and air 
                traffic requirements for civil unmanned 
                aircraft systems at test ranges where such 
                systems are subject to testing;
                    (H) the best methods to ensure the safe 
                operation of civil unmanned aircraft systems 
                and public unmanned aircraft systems 
                simultaneously in the national airspace system; 
                and
                    (I) incorporation of the plan into the 
                annual NextGen Implementation Plan document (or 
                any successor document) of the Federal Aviation 
                Administration.
            (3) Deadline.--The plan required under paragraph 
        (1) shall provide for the safe integration of civil 
        unmanned aircraft systems into the national airspace 
        system as soon as practicable, but not later than 
        September 30, 2015.
            (4) Report to congress.--Not later than 1 year 
        after the date of enactment of this Act, the Secretary 
        shall submit to Congress a copy of the plan required 
        under paragraph (1).
            (5) Roadmap.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall approve 
        and make available in print and on the Administration's 
        Internet Web site a 5-year roadmap for the introduction 
        of civil unmanned aircraft systems into the national 
        airspace system, as coordinated by the Unmanned 
        Aircraft Program Office of the Administration. The 
        Secretary shall update the roadmap annually.
    (b) Rulemaking.--Not later than 18 months after the date on 
which the plan required under subsection (a)(1) is submitted to 
Congress under subsection (a)(4), the Secretary shall publish 
in the Federal Register--
            (1) a final rule on small unmanned aircraft systems 
        that will allow for civil operation of such systems in 
        the national airspace system, to the extent the systems 
        do not meet the requirements for expedited operational 
        authorization under section 333 of this Act;
            (2) a notice of proposed rulemaking to implement 
        the recommendations of the plan required under 
        subsection (a)(1), with the final rule to be published 
        not later than 16 months after the date of publication 
        of the notice; and
            (3) an update to the Administration's most recent 
        policy statement on unmanned aircraft systems, 
        contained in Docket No. FAA-2006-25714.
    (c) Pilot Projects.--
            (1) Establishment.--Not later than 180 days after 
        the date of enactment of this Act, the Administrator 
        shall establish a program to integrate unmanned 
        aircraft systems into the national airspace system at 6 
        test ranges. The program shall terminate 5 years after 
        the date of enactment of this Act.
            (2) Program requirements.--In establishing the 
        program under paragraph (1), the Administrator shall--
                    (A) safely designate airspace for 
                integrated manned and unmanned flight 
                operations in the national airspace system;
                    (B) develop certification standards and air 
                traffic requirements for unmanned flight 
                operations at test ranges;
                    (C) coordinate with and leverage the 
                resources of the National Aeronautics and Space 
                Administration and the Department of Defense;
                    (D) address both civil and public unmanned 
                aircraft systems;
                    (E) ensure that the program is coordinated 
                with the Next Generation Air Transportation 
                System; and
                    (F) provide for verification of the safety 
                of unmanned aircraft systems and related 
                navigation procedures before integration into 
                the national airspace system.
            (3) Test range locations.--In determining the 
        location of the 6 test ranges of the program under 
        paragraph (1), the Administrator shall--
                    (A) take into consideration geographic and 
                climatic diversity;
                    (B) take into consideration the location of 
                ground infrastructure and research needs; and
                    (C) consult with the National Aeronautics 
                and Space Administration and the Department of 
                Defense.
            (4) Test range operation.--A project at a test 
        range shall be operational not later than 180 days 
        after the date on which the project is established.
            (5) Report to congress.--
                    (A) In general.--Not later than 90 days 
                after the date of the termination of the 
                program under paragraph (1), the Administrator 
                shall submit to the Committee on Commerce, 
                Science, and Transportation of the Senate and 
                the Committee on Transportation and 
                Infrastructure and the Committee on Science, 
                Space, and Technology of the House of 
                Representatives a report setting forth the 
                Administrator's findings and conclusions 
                concerning the projects.
                    (B) Additional contents.--The report under 
                subparagraph (A) shall include a description 
                and assessment of the progress being made in 
                establishing special use airspace to fill the 
                immediate need of the Department of Defense--
                            (i) to develop detection techniques 
                        for small unmanned aircraft systems; 
                        and
                            (ii) to validate the sense and 
                        avoid capability and operation of 
                        unmanned aircraft systems.
    (d) Expanding Use of Unmanned Aircraft Systems in Arctic.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall 
        develop a plan and initiate a process to work with 
        relevant Federal agencies and national and 
        international communities to designate permanent areas 
        in the Arctic where small unmanned aircraft may operate 
        24 hours per day for research and commercial purposes. 
        The plan for operations in these permanent areas shall 
        include the development of processes to facilitate the 
        safe operation of unmanned aircraft beyond line of 
        sight. Such areas shall enable over-water flights from 
        the surface to at least 2,000 feet in altitude, with 
        ingress and egress routes from selected coastal launch 
        sites.
            (2) Agreements.--To implement the plan under 
        paragraph (1), the Secretary may enter into an 
        agreement with relevant national and international 
        communities.
            (3) Aircraft approval.--Not later than 1 year after 
        the entry into force of an agreement necessary to 
        effectuate the purposes of this subsection, the 
        Secretary shall work with relevant national and 
        international communities to establish and implement a 
        process, or may apply an applicable process already 
        established, for approving the use of unmanned aircraft 
        in the designated permanent areas in the Arctic without 
        regard to whether an unmanned aircraft is used as a 
        public aircraft, a civil aircraft, or a model aircraft.

SEC. 333. SPECIAL RULES FOR CERTAIN UNMANNED AIRCRAFT SYSTEMS.

    (a) In General.--Notwithstanding any other requirement of 
this subtitle, and not later than 180 days after the date of 
enactment of this Act, the Secretary of Transportation shall 
determine if certain unmanned aircraft systems may operate 
safely in the national airspace system before completion of the 
plan and rulemaking required by section 332 of this Act or the 
guidance required by section 334 of this Act.
    (b) Assessment of Unmanned Aircraft Systems.--In making the 
determination under subsection (a), the Secretary shall 
determine, at a minimum--
            (1) which types of unmanned aircraft systems, if 
        any, as a result of their size, weight, speed, 
        operational capability, proximity to airports and 
        populated areas, and operation within visual line of 
        sight do not create a hazard to users of the national 
        airspace system or the public or pose a threat to 
        national security; and
            (2) whether a certificate of waiver, certificate of 
        authorization, or airworthiness certification under 
        section 44704 of title 49, United States Code, is 
        required for the operation of unmanned aircraft systems 
        identified under paragraph (1).
    (c) Requirements for Safe Operation.--If the Secretary 
determines under this section that certain unmanned aircraft 
systems may operate safely in the national airspace system, the 
Secretary shall establish requirements for the safe operation 
of such aircraft systems in the national airspace system.

SEC. 334. PUBLIC UNMANNED AIRCRAFT SYSTEMS.

    (a) Guidance.--Not later than 270 days after the date of 
enactment of this Act, the Secretary of Transportation shall 
issue guidance regarding the operation of public unmanned 
aircraft systems to--
            (1) expedite the issuance of a certificate of 
        authorization process;
            (2) provide for a collaborative process with public 
        agencies to allow for an incremental expansion of 
        access to the national airspace system as technology 
        matures and the necessary safety analysis and data 
        become available, and until standards are completed and 
        technology issues are resolved;
            (3) facilitate the capability of public agencies to 
        develop and use test ranges, subject to operating 
        restrictions required by the Federal Aviation 
        Administration, to test and operate unmanned aircraft 
        systems; and
            (4) provide guidance on a public entity's 
        responsibility when operating an unmanned aircraft 
        without a civil airworthiness certificate issued by the 
        Administration.
    (b) Standards for Operation and Certification.--Not later 
than December 31, 2015, the Administrator shall develop and 
implement operational and certification requirements for the 
operation of public unmanned aircraft systems in the national 
airspace system.
    (c) Agreements With Government Agencies.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary shall 
        enter into agreements with appropriate government 
        agencies to simplify the process for issuing 
        certificates of waiver or authorization with respect to 
        applications seeking authorization to operate public 
        unmanned aircraft systems in the national airspace 
        system.
            (2) Contents.--The agreements shall--
                    (A) with respect to an application 
                described in paragraph (1)--
                            (i) provide for an expedited review 
                        of the application;
                            (ii) require a decision by the 
                        Administrator on approval or 
                        disapproval within 60 business days of 
                        the date of submission of the 
                        application; and
                            (iii) allow for an expedited appeal 
                        if the application is disapproved;
                    (B) allow for a one-time approval of 
                similar operations carried out during a fixed 
                period of time; and
                    (C) allow a government public safety agency 
                to operate unmanned aircraft weighing 4.4 
                pounds or less, if operated--
                            (i) within the line of sight of the 
                        operator;
                            (ii) less than 400 feet above the 
                        ground;
                            (iii) during daylight conditions;
                            (iv) within Class G airspace; and
                            (v) outside of 5 statute miles from 
                        any airport, heliport, seaplane base, 
                        spaceport, or other location with 
                        aviation activities.

SEC. 335. SAFETY STUDIES.

    The Administrator of the Federal Aviation Administration 
shall carry out all safety studies necessary to support the 
integration of unmanned aircraft systems into the national 
airspace system.

SEC. 336. SPECIAL RULE FOR MODEL AIRCRAFT.

    (a) In General.--Notwithstanding any other provision of law 
relating to the incorporation of unmanned aircraft systems into 
Federal Aviation Administration plans and policies, including 
this subtitle, the Administrator of the Federal Aviation 
Administration may not promulgate any rule or regulation 
regarding a model aircraft, or an aircraft being developed as a 
model aircraft, if--
            (1) the aircraft is flown strictly for hobby or 
        recreational use;
            (2) the aircraft is operated in accordance with a 
        community-based set of safety guidelines and within the 
        programming of a nationwide community-based 
        organization;
            (3) the aircraft is limited to not more than 55 
        pounds unless otherwise certified through a design, 
        construction, inspection, flight test, and operational 
        safety program administered by a community-based 
        organization;
            (4) the aircraft is operated in a manner that does 
        not interfere with and gives way to any manned 
        aircraft; and
            (5) when flown within 5 miles of an airport, the 
        operator of the aircraft provides the airport operator 
        and the airport air traffic control tower (when an air 
        traffic facility is located at the airport) with prior 
        notice of the operation (model aircraft operators 
        flying from a permanent location within 5 miles of an 
        airport should establish a mutually-agreed upon 
        operating procedure with the airport operator and the 
        airport air traffic control tower (when an air traffic 
        facility is located at the airport)).
    (b) Statutory Construction.--Nothing in this section shall 
be construed to limit the authority of the Administrator to 
pursue enforcement action against persons operating model 
aircraft who endanger the safety of the national airspace 
system.
    (c) Model Aircraft Defined.--In this section, the term 
``model aircraft'' means an unmanned aircraft that is--
            (1) capable of sustained flight in the atmosphere;
            (2) flown within visual line of sight of the person 
        operating the aircraft; and
            (3) flown for hobby or recreational purposes.

                   Subtitle C--Safety and Protections

SEC. 341. AVIATION SAFETY WHISTLEBLOWER INVESTIGATION OFFICE.

    Section 106 (as amended by this Act) is further amended by 
adding at the end the following:
    ``(t) Aviation Safety Whistleblower Investigation Office.--
            ``(1) Establishment.--There is established in the 
        Federal Aviation Administration (in this subsection 
        referred to as the `Agency') an Aviation Safety 
        Whistleblower Investigation Office (in this subsection 
        referred to as the `Office').
            ``(2) Director.--
                    ``(A) Appointment.--The head of the Office 
                shall be the Director, who shall be appointed 
                by the Secretary of Transportation.
                    ``(B) Qualifications.--The Director shall 
                have a demonstrated ability in investigations 
                and knowledge of or experience in aviation.
                    ``(C) Term.--The Director shall be 
                appointed for a term of 5 years.
                    ``(D) Vacancies.--Any individual appointed 
                to fill a vacancy in the position of the 
                Director occurring before the expiration of the 
                term for which the individual's predecessor was 
                appointed shall be appointed for the remainder 
                of that term.
            ``(3) Complaints and investigations.--
                    ``(A) Authority of director.--The Director 
                shall--
                            ``(i) receive complaints and 
                        information submitted by employees of 
                        persons holding certificates issued 
                        under title 14, Code of Federal 
                        Regulations (if the certificate holder 
                        does not have a similar in-house 
                        whistleblower or safety and regulatory 
                        noncompliance reporting process) and 
                        employees of the Agency concerning the 
                        possible existence of an activity 
                        relating to a violation of an order, a 
                        regulation, or any other provision of 
                        Federal law relating to aviation 
                        safety;
                            ``(ii) assess complaints and 
                        information submitted under clause (i) 
                        and determine whether a substantial 
                        likelihood exists that a violation of 
                        an order, a regulation, or any other 
                        provision of Federal law relating to 
                        aviation safety has occurred; and
                            ``(iii) based on findings of the 
                        assessment conducted under clause (ii), 
                        make recommendations to the 
                        Administrator of the Agency, in 
                        writing, regarding further 
                        investigation or corrective actions.
                    ``(B) Disclosure of identities.--The 
                Director shall not disclose the identity of an 
                individual who submits a complaint or 
                information under subparagraph (A)(i) unless--
                            ``(i) the individual consents to 
                        the disclosure in writing; or
                            ``(ii) the Director determines, in 
                        the course of an investigation, that 
                        the disclosure is required by 
                        regulation, statute, or court order, or 
                        is otherwise unavoidable, in which case 
                        the Director shall provide the 
                        individual reasonable advanced notice 
                        of the disclosure.
                    ``(C) Independence of director.--The 
                Secretary, the Administrator, or any officer or 
                employee of the Agency may not prevent or 
                prohibit the Director from initiating, carrying 
                out, or completing any assessment of a 
                complaint or information submitted under 
                subparagraph (A)(i) or from reporting to 
                Congress on any such assessment.
                    ``(D) Access to information.--In conducting 
                an assessment of a complaint or information 
                submitted under subparagraph (A)(i), the 
                Director shall have access to all records, 
                reports, audits, reviews, documents, papers, 
                recommendations, and other material of the 
                Agency necessary to determine whether a 
                substantial likelihood exists that a violation 
                of an order, a regulation, or any other 
                provision of Federal law relating to aviation 
                safety may have occurred.
            ``(4) Responses to recommendations.--Not later than 
        60 days after the date on which the Administrator 
        receives a report with respect to an investigation, the 
        Administrator shall respond to a recommendation made by 
        the Director under paragraph (3)(A)(iii) in writing and 
        retain records related to any further investigations or 
        corrective actions taken in response to the 
        recommendation.
            ``(5) Incident reports.--If the Director determines 
        there is a substantial likelihood that a violation of 
        an order, a regulation, or any other provision of 
        Federal law relating to aviation safety has occurred 
        that requires immediate corrective action, the Director 
        shall report the potential violation expeditiously to 
        the Administrator and the Inspector General of the 
        Department of Transportation.
            ``(6) Reporting of criminal violations to inspector 
        general.--If the Director has reasonable grounds to 
        believe that there has been a violation of Federal 
        criminal law, the Director shall report the violation 
        expeditiously to the Inspector General.
            ``(7) Annual reports to congress.--Not later than 
        October 1 of each year, the Director shall submit to 
        Congress a report containing--
                    ``(A) information on the number of 
                submissions of complaints and information 
                received by the Director under paragraph 
                (3)(A)(i) in the preceding 12-month period;
                    ``(B) summaries of those submissions;
                    ``(C) summaries of further investigations 
                and corrective actions recommended in response 
                to the submissions; and
                    ``(D) summaries of the responses of the 
                Administrator to such recommendations.''.

SEC. 342. POSTEMPLOYMENT RESTRICTIONS FOR FLIGHT STANDARDS INSPECTORS.

    (a) In General.--Section 44711 is amended by adding at the 
end the following:
    ``(d) Postemployment Restrictions for Flight Standards 
Inspectors.--
            ``(1) Prohibition.--A person holding an operating 
        certificate issued under title 14, Code of Federal 
        Regulations, may not knowingly employ, or make a 
        contractual arrangement that permits, an individual to 
        act as an agent or representative of the certificate 
        holder in any matter before the Federal Aviation 
        Administration if the individual, in the preceding 2-
        year period--
                    ``(A) served as, or was responsible for 
                oversight of, a flight standards inspector of 
                the Administration; and
                    ``(B) had responsibility to inspect, or 
                oversee inspection of, the operations of the 
                certificate holder.
            ``(2) Written and oral communications.--For 
        purposes of paragraph (1), an individual shall be 
        considered to be acting as an agent or representative 
        of a certificate holder in a matter before the 
        Administration if the individual makes any written or 
        oral communication on behalf of the certificate holder 
        to the Administration (or any of its officers or 
        employees) in connection with a particular matter, 
        whether or not involving a specific party and without 
        regard to whether the individual has participated in, 
        or had responsibility for, the particular matter while 
        serving as a flight standards inspector of the 
        Administration.''.
    (b) Applicability.--The amendment made by subsection (a) 
shall not apply to an individual employed by a certificate 
holder as of the date of enactment of this Act.

SEC. 343. REVIEW OF AIR TRANSPORTATION OVERSIGHT SYSTEM DATABASE.

    (a) Reviews.--The Administrator of the Federal Aviation 
Administration shall establish a process by which the air 
transportation oversight system database of the Administration 
is reviewed by regional teams of employees of the 
Administration, including at least one employee on each team 
representing aviation safety inspectors, on a monthly basis to 
ensure that--
            (1) any trends in regulatory compliance are 
        identified; and
            (2) appropriate corrective actions are taken in 
        accordance with Administration regulations, advisory 
        directives, policies, and procedures.
    (b) Monthly Team Reports.--
            (1) In general.--A regional team of employees 
        conducting a monthly review of the air transportation 
        oversight system database under subsection (a) shall 
        submit to the Administrator, the Associate 
        Administrator for Aviation Safety, and the Director of 
        Flight Standards Service a report each month on the 
        results of the review.
            (2) Contents.--A report submitted under paragraph 
        (1) shall identify--
                    (A) any trends in regulatory compliance 
                discovered by the team of employees in 
                conducting the monthly review; and
                    (B) any corrective actions taken or 
                proposed to be taken in response to the trends.
    (c) Biannual Reports to Congress.--The Administrator, on a 
biannual basis, shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a report on the results of the reviews of the air 
transportation oversight system database conducted under this 
section, including copies of reports received under subsection 
(b).

SEC. 344. IMPROVED VOLUNTARY DISCLOSURE REPORTING SYSTEM.

    (a) Voluntary Disclosure Reporting Program Defined.--In 
this section, the term ``Voluntary Disclosure Reporting 
Program'' means the program established by the Federal Aviation 
Administration through Advisory Circular 00-58A, dated 
September 8, 2006, including any subsequent revisions thereto.
    (b) Verification.--The Administrator of the Federal 
Aviation Administration shall modify the Voluntary Disclosure 
Reporting Program to require inspectors to--
            (1) verify that air carriers are implementing 
        comprehensive solutions to correct the underlying 
        causes of the violations voluntarily disclosed by such 
        air carriers; and
            (2) confirm, before approving a final report of a 
        violation, that a violation with the same root causes, 
        has not been previously discovered by an inspector or 
        self-disclosed by the air carrier.
    (c) Supervisory Review of Voluntary Self-disclosures.--The 
Administrator shall establish a process by which voluntary 
self-disclosures received from air carriers are reviewed and 
approved by a supervisor after the initial review by an 
inspector.
    (d) Inspector General Study.--
            (1) In general.--The Inspector General of the 
        Department of Transportation shall conduct a study of 
        the Voluntary Disclosure Reporting Program.
            (2) Review.--In conducting the study, the Inspector 
        General shall examine, at a minimum, if the 
        Administration--
                    (A) conducts comprehensive reviews of 
                voluntary disclosure reports before closing a 
                voluntary disclosure report under the 
                provisions of the program;
                    (B) evaluates the effectiveness of 
                corrective actions taken by air carriers; and
                    (C) effectively prevents abuse of the 
                voluntary disclosure reporting program through 
                its secondary review of self-disclosures before 
                they are accepted and closed by the 
                Administration.
            (3) Report to congress.--Not later than 1 year 
        after the date of enactment of this Act, the Inspector 
        General shall submit to the Committee on Transportation 
        and Infrastructure of the House of Representatives and 
        Committee on Commerce, Science, and Transportation of 
        the Senate a report on the results of the study 
        conducted under this section.

SEC. 345. DUTY PERIODS AND FLIGHT TIME LIMITATIONS APPLICABLE TO FLIGHT 
                    CREWMEMBERS.

    (a) Rulemaking on Applicability of Part 121 Duty Periods 
and Flight Time Limitations to Part 91 Operations.--Not later 
than 180 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall 
initiate a rulemaking proceeding, if such a proceeding has not 
already been initiated, to require a flight crewmember who is 
employed by an air carrier conducting operations under part 121 
of title 14, Code of Federal Regulations, and who accepts an 
additional assignment for flying under part 91 of such title 
from the air carrier or from any other air carrier conducting 
operations under part 121 or 135 of such title, to apply the 
period of the additional assignment (regardless of whether the 
assignment is performed by the flight crewmember before or 
after an assignment to fly under part 121 of such title) toward 
any limitation applicable to the flight crewmember relating to 
duty periods or flight times under part 121 of such title.
    (b) Rulemaking on Applicability of Part 135 Duty Periods 
and Flight Time Limitations to Part 91 Operations.--Not later 
than 1 year after the date of enactment of this Act, the 
Administrator shall initiate a rulemaking proceeding to require 
a flight crewmember who is employed by an air carrier 
conducting operations under part 135 of title 14, Code of 
Federal Regulations, and who accepts an additional assignment 
for flying under part 91 of such title from the air carrier or 
any other air carrier conducting operations under part 121 or 
135 of such title, to apply the period of the additional 
assignment (regardless of whether the assignment is performed 
by the flight crewmember before or after an assignment to fly 
under part 135 of such title) toward any limitation applicable 
to the flight crewmember relating to duty periods or flight 
times under part 135 of such title.
    (c) Separate Rulemaking Proceedings Required.--The 
rulemaking proceeding required under subsection (b) shall be 
separate from the rulemaking proceeding required under 
subsection (a).

SEC. 346. CERTAIN EXISTING FLIGHT TIME LIMITATIONS AND REST 
                    REQUIREMENTS.

    The Administrator of the Federal Aviation Administration 
may not finalize the interpretation proposed in Docket No. FAA-
2010-1259, relating to rest requirements, and published in the 
Federal Register on December 23, 2010.

SEC. 347. EMERGENCY LOCATOR TRANSMITTERS ON GENERAL AVIATION AIRCRAFT.

    (a) Inspection.--As part of the annual inspection of 
general aviation aircraft, the Administrator of the Federal 
Aviation Administration shall require a detailed inspection of 
each emergency locator transmitter (in this section referred to 
as an ``ELT'') installed in general aviation aircraft operating 
in the United States to ensure that the ELT is mounted and 
retained in accordance with the manufacturer's specifications.
    (b) Mounting and Retention.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator shall 
        determine if the ELT mounting requirements and 
        retention tests specified by Technical Standard Orders 
        C91a and C126 are adequate to assess retention 
        capabilities in ELT designs.
            (2) Revision.--Based on the determination under 
        paragraph (1), the Administrator shall make any 
        necessary revisions to the requirements and retention 
        tests referred to in paragraph (1) to ensure that ELTs 
        are properly retained in the event of an aircraft 
        accident.
    (c) Report.--Upon the completion of any revisions under 
subsection (b)(2), the Administrator shall submit a report on 
the implementation of this section to--
            (1) the Committee on Commerce, Science, and 
        Transportation of the Senate; and
            (2) the Committee on Transportation and 
        Infrastructure of the House of Representatives.

                   TITLE IV--AIR SERVICE IMPROVEMENTS

             Subtitle A--Passenger Air Service Improvements

SEC. 401. SMOKING PROHIBITION.

    (a) In General.--Section 41706 is amended--
            (1) in the section heading by striking 
        ``scheduled'' and inserting ``passenger''; and
            (2) by striking subsections (a) and (b) and 
        inserting the following:
    ``(a) Smoking Prohibition in Interstate and Intrastate Air 
Transportation.--An individual may not smoke--
            ``(1) in an aircraft in scheduled passenger 
        interstate or intrastate air transportation; or
            ``(2) in an aircraft in nonscheduled passenger 
        interstate or intrastate air transportation, if a 
        flight attendant is a required crewmember on the 
        aircraft (as determined by the Administrator of the 
        Federal Aviation Administration).
    ``(b) Smoking Prohibition in Foreign Air Transportation.--
The Secretary of Transportation shall require all air carriers 
and foreign air carriers to prohibit smoking--
            ``(1) in an aircraft in scheduled passenger foreign 
        air transportation; and
            ``(2) in an aircraft in nonscheduled passenger 
        foreign air transportation, if a flight attendant is a 
        required crewmember on the aircraft (as determined by 
        the Administrator or a foreign government).''.
    (b) Clerical Amendment.--The analysis for chapter 417 is 
amended by striking the item relating to section 41706 and 
inserting the following:

``41706. Prohibitions against smoking on passenger flights.''.

SEC. 402. MONTHLY AIR CARRIER REPORTS.

    (a) In General.--Section 41708 is amended by adding at the 
end the following:
    ``(c) Diverted and Cancelled Flights.--
            ``(1) Monthly reports.--The Secretary shall require 
        an air carrier referred to in paragraph (2) to file 
        with the Secretary a monthly report on each flight of 
        the air carrier that is diverted from its scheduled 
        destination to another airport and each flight of the 
        air carrier that departs the gate at the airport at 
        which the flight originates but is cancelled before 
        wheels-off time.
            ``(2) Applicability.--An air carrier that is 
        required to file a monthly airline service quality 
        performance report pursuant to part 234 of title 14, 
        Code of Federal Regulations, shall be subject to the 
        requirement of paragraph (1).
            ``(3) Contents.--A monthly report filed by an air 
        carrier under paragraph (1) shall include, at a 
        minimum, the following information:
                    ``(A) For a diverted flight--
                            ``(i) the flight number of the 
                        diverted flight;
                            ``(ii) the scheduled destination of 
                        the flight;
                            ``(iii) the date and time of the 
                        flight;
                            ``(iv) the airport to which the 
                        flight was diverted;
                            ``(v) wheels-on time at the 
                        diverted airport;
                            ``(vi) the time, if any, passengers 
                        deplaned the aircraft at the diverted 
                        airport; and
                            ``(vii) if the flight arrives at 
                        the scheduled destination airport--
                                    ``(I) the gate-departure 
                                time at the diverted airport;
                                    ``(II) the wheels-off time 
                                at the diverted airport;
                                    ``(III) the wheels-on time 
                                at the scheduled arrival 
                                airport; and
                                    ``(IV) the gate-arrival 
                                time at the scheduled arrival 
                                airport.
                    ``(B) For flights cancelled after gate 
                departure--
                            ``(i) the flight number of the 
                        cancelled flight;
                            ``(ii) the scheduled origin and 
                        destination airports of the cancelled 
                        flight;
                            ``(iii) the date and time of the 
                        cancelled flight;
                            ``(iv) the gate-departure time of 
                        the cancelled flight; and
                            ``(v) the time the aircraft 
                        returned to the gate.
            ``(4) Publication.--The Secretary shall compile the 
        information provided in the monthly reports filed 
        pursuant to paragraph (1) in a single monthly report 
        and publish such report on the Internet Web site of the 
        Department of Transportation.''.
    (b) Effective Date.--Beginning not later than 90 days after 
the date of enactment of this Act, the Secretary of 
Transportation shall require monthly reports pursuant to the 
amendment made by subsection (a).

SEC. 403. MUSICAL INSTRUMENTS.

    (a) In General.--Subchapter I of chapter 417 is amended by 
adding at the end the following:

``Sec. 41724. Musical instruments

    ``(a) In General.--
            ``(1) Small instruments as carry-on baggage.--An 
        air carrier providing air transportation shall permit a 
        passenger to carry a violin, guitar, or other musical 
        instrument in the aircraft cabin, without charging the 
        passenger a fee in addition to any standard fee that 
        carrier may require for comparable carry-on baggage, 
        if--
                    ``(A) the instrument can be stowed safely 
                in a suitable baggage compartment in the 
                aircraft cabin or under a passenger seat, in 
                accordance with the requirements for carriage 
                of carry-on baggage or cargo established by the 
                Administrator; and
                    ``(B) there is space for such stowage at 
                the time the passenger boards the aircraft.
            ``(2) Larger instruments as carry-on baggage.--An 
        air carrier providing air transportation shall permit a 
        passenger to carry a musical instrument that is too 
        large to meet the requirements of paragraph (1) in the 
        aircraft cabin, without charging the passenger a fee in 
        addition to the cost of the additional ticket described 
        in subparagraph (E), if--
                    ``(A) the instrument is contained in a case 
                or covered so as to avoid injury to other 
                passengers;
                    ``(B) the weight of the instrument, 
                including the case or covering, does not exceed 
                165 pounds or the applicable weight 
                restrictions for the aircraft;
                    ``(C) the instrument can be stowed in 
                accordance with the requirements for carriage 
                of carry-on baggage or cargo established by the 
                Administrator;
                    ``(D) neither the instrument nor the case 
                contains any object not otherwise permitted to 
                be carried in an aircraft cabin because of a 
                law or regulation of the United States; and
                    ``(E) the passenger wishing to carry the 
                instrument in the aircraft cabin has purchased 
                an additional seat to accommodate the 
                instrument.
            ``(3) Large instruments as checked baggage.--An air 
        carrier shall transport as baggage a musical instrument 
        that is the property of a passenger traveling in air 
        transportation that may not be carried in the aircraft 
        cabin if--
                    ``(A) the sum of the length, width, and 
                height measured in inches of the outside linear 
                dimensions of the instrument (including the 
                case) does not exceed 150 inches or the 
                applicable size restrictions for the aircraft;
                    ``(B) the weight of the instrument does not 
                exceed 165 pounds or the applicable weight 
                restrictions for the aircraft; and
                    ``(C) the instrument can be stowed in 
                accordance with the requirements for carriage 
                of carry-on baggage or cargo established by the 
                Administrator.
    ``(b) Regulations.--Not later than 2 years after the date 
of enactment of this section, the Secretary shall issue final 
regulations to carry out subsection (a).
    ``(c) Effective Date.--The requirements of this section 
shall become effective on the date of issuance of the final 
regulations under subsection (b).''.
    (b) Conforming Amendment.--The analysis for such subchapter 
is amended by adding at the end the following:

``41724. Musical instruments.''.

SEC. 404. EXTENSION OF COMPETITIVE ACCESS REPORTS.

    Section 47107(s)(3) is amended to read as follows:
            ``(3) Sunset provision.--This subsection shall 
        cease to be effective beginning October 1, 2015.''.

SEC. 405. AIRFARES FOR MEMBERS OF THE ARMED FORCES.

    (a) Findings.--Congress finds that--
            (1) the Armed Forces is comprised of approximately 
        1,450,000 members who are stationed on active duty at 
        more than 6,000 military bases in 146 different 
        countries;
            (2) the United States is indebted to the members of 
        the Armed Forces, many of whom are in grave danger due 
        to their engagement in, or exposure to, combat;
            (3) military service, especially in the current war 
        against terrorism, often requires members of the Armed 
        Forces to be separated from their families on short 
        notice, for long periods of time, and under very 
        stressful conditions;
            (4) the unique demands of military service often 
        preclude members of the Armed Forces from purchasing 
        discounted advance airline tickets in order to visit 
        their loved ones at home; and
            (5) it is the patriotic duty of the people of the 
        United States to support the members of the Armed 
        Forces who are defending the Nation's interests around 
        the world at great personal sacrifice.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) all United States commercial air carriers 
        should seek to lend their support with flexible, 
        generous policies applicable to members of the Armed 
        Forces who are traveling on leave or liberty at their 
        own expense; and
            (2) each United States air carrier, for all members 
        of the Armed Forces who have been granted leave or 
        liberty and who are traveling by air at their own 
        expense, should--
                    (A) seek to provide reduced air fares that 
                are comparable to the lowest airfare for 
                ticketed flights and that eliminate to the 
                maximum extent possible advance purchase 
                requirements;
                    (B) seek to eliminate change fees or 
                charges and any penalties;
                    (C) seek to eliminate or reduce baggage and 
                excess weight fees;
                    (D) offer flexible terms that allow members 
                to purchase, modify, or cancel tickets without 
                time restrictions, and to waive fees (including 
                baggage fees), ancillary costs, or penalties; 
                and
                    (E) seek to take proactive measures to 
                ensure that all airline employees, particularly 
                those who issue tickets and respond to members 
                of the Armed Forces and their family members, 
                are trained in the policies of the airline 
                aimed at benefitting members of the Armed 
                Forces who are on leave or liberty.

SEC. 406. REVIEW OF AIR CARRIER FLIGHT DELAYS, CANCELLATIONS, AND 
                    ASSOCIATED CAUSES.

    (a) Review.--The Inspector General of the Department of 
Transportation shall conduct a review regarding air carrier 
flight delays, cancellations, and associated causes to update 
the 2000 report numbered CR-2000-112 and titled ``Audit of Air 
Carrier Flight Delays and Cancellations''.
    (b) Assessments.--In conducting the review under subsection 
(a), the Inspector General shall assess--
            (1) the need for an update on delay and 
        cancellation statistics, including with respect to the 
        number of chronically delayed flights and taxi-in and 
        taxi-out times;
            (2) air carriers' scheduling practices;
            (3) the need for a reexamination of capacity 
        benchmarks at the Nation's busiest airports;
            (4) the impact of flight delays and cancellations 
        on air travelers, including recommendations for 
        programs that could be implemented to address the 
        impact of flight delays on air travelers;
            (5) the effect that limited air carrier service 
        options on routes have on the frequency of delays and 
        cancellations on such routes;
            (6) the effect of the rules and regulations of the 
        Department of Transportation on the decisions of air 
        carriers to delay or cancel flights; and
            (7) the impact of flight delays and cancellations 
        on the airline industry.
    (c) Report to Congress.--Not later than 1 year after the 
date of enactment of this Act, the Inspector General shall 
submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
results of the review conducted under this section, including 
the assessments described in subsection (b).

SEC. 407. COMPENSATION FOR DELAYED BAGGAGE.

    (a) Study.--The Comptroller General of the United States 
shall conduct a study to--
            (1) examine delays in the delivery of checked 
        baggage to passengers of air carriers; and
            (2) assess the options for and examine the impact 
        of establishing minimum standards to compensate a 
        passenger in the case of an unreasonable delay in the 
        delivery of checked baggage.
    (b) Consideration.--In conducting the study, the 
Comptroller General shall take into account the additional fees 
for checked baggage that are imposed by many air carriers and 
how the additional fees should improve an air carrier's baggage 
performance.
    (c) Report to Congress.--Not later than 180 days after the 
date of enactment of this Act, the Comptroller General shall 
transmit to Congress a report on the results of the study.

SEC. 408. DOT AIRLINE CONSUMER COMPLAINT INVESTIGATIONS.

    The Secretary of Transportation may investigate consumer 
complaints regarding--
            (1) flight cancellations;
            (2) compliance with Federal regulations concerning 
        overbooking seats on flights;
            (3) lost, damaged, or delayed baggage, and 
        difficulties with related airline claims procedures;
            (4) problems in obtaining refunds for unused or 
        lost tickets or fare adjustments;
            (5) incorrect or incomplete information about 
        fares, discount fare conditions and availability, 
        overcharges, and fare increases;
            (6) the rights of passengers who hold frequent 
        flyer miles or equivalent redeemable awards earned 
        through customer-loyalty programs; and
            (7) deceptive or misleading advertising.

SEC. 409. STUDY OF OPERATORS REGULATED UNDER PART 135.

    (a) Study Required.--The Administrator of the Federal 
Aviation Administration, in consultation with interested 
parties, shall conduct a study of operators regulated under 
part 135 of title 14, Code of Federal Regulations.
    (b) Contents.--In conducting the study under subsection 
(a), the Administrator shall analyze the part 135 fleet in the 
United States, which shall include analysis of--
            (1) the size and type of aircraft in the fleet;
            (2) the equipment utilized by the fleet;
            (3) the hours flown each year by the fleet;
            (4) the utilization rates with respect to the 
        fleet;
            (5) the safety record of various categories of use 
        and aircraft types with respect to the fleet, through a 
        review of the database of the National Transportation 
        Safety Board;
            (6) the sales revenues of the fleet; and
            (7) the number of passengers and airports served by 
        the fleet.
    (c) Report to Congress.--Not later than 18 months after the 
date of enactment of this Act, the Administrator shall submit 
to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
results of the study conducted under subsection (a).

SEC. 410. USE OF CELL PHONES ON PASSENGER AIRCRAFT.

    (a) Cell Phone Study.--Not later than 120 days after the 
date of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall conduct a study on the impact of 
the use of cell phones for voice communications in an aircraft 
during a flight in scheduled passenger air transportation where 
currently permitted by foreign governments in foreign air 
transportation.
    (b) Contents.--The study shall include--
            (1) a review of foreign government and air carrier 
        policies on the use of cell phones during flight;
            (2) a review of the extent to which passengers use 
        cell phones for voice communications during flight; and
            (3) a summary of any impacts of cell phone use 
        during flight on safety, the quality of the flight 
        experience of passengers, and flight attendants.
    (c) Comment Period.--Not later than 180 days after the date 
of enactment of this Act, the Administrator shall publish in 
the Federal Register the results of the study and allow 60 days 
for public comment.
    (d) Cell Phone Report.--Not later than 270 days after the 
date of enactment of this Act, the Administrator shall submit 
to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
results of the study.

SEC. 411. ESTABLISHMENT OF ADVISORY COMMITTEE FOR AVIATION CONSUMER 
                    PROTECTION.

    (a) In General.--The Secretary of Transportation shall 
establish an advisory committee for aviation consumer 
protection to advise the Secretary in carrying out activities 
relating to airline customer service improvements.
    (b) Membership.--The Secretary shall appoint the members of 
the advisory committee, which shall be comprised of one 
representative each of--
            (1) air carriers;
            (2) airport operators;
            (3) State or local governments with expertise in 
        consumer protection matters; and
            (4) nonprofit public interest groups with expertise 
        in consumer protection matters.
    (c) Vacancies.--A vacancy in the advisory committee shall 
be filled in the manner in which the original appointment was 
made.
    (d) Travel Expenses.--Members of the advisory committee 
shall serve without pay but shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance with 
subchapter I of chapter 57 of title 5, United States Code.
    (e) Chairperson.--The Secretary shall designate, from among 
the individuals appointed under subsection (b), an individual 
to serve as chairperson of the advisory committee.
    (f) Duties.--The duties of the advisory committee shall 
include--
            (1) evaluating existing aviation consumer 
        protection programs and providing recommendations for 
        the improvement of such programs, if needed; and
            (2) providing recommendations for establishing 
        additional aviation consumer protection programs, if 
        needed.
    (g) Report to Congress.--Not later than February 1 of each 
of the first 2 calendar years beginning after the date of 
enactment of this Act, the Secretary shall transmit to Congress 
a report containing--
            (1) the recommendations made by the advisory 
        committee during the preceding calendar year; and
            (2) an explanation of how the Secretary has 
        implemented each recommendation and, for each 
        recommendation not implemented, the Secretary's reason 
        for not implementing the recommendation.
    (h) Termination.--The advisory committee established under 
this section shall terminate on September 30, 2015.

SEC. 412. DISCLOSURE OF SEAT DIMENSIONS TO FACILITATE THE USE OF CHILD 
                    SAFETY SEATS ON AIRCRAFT.

    Not later than 1 year after the date of enactment of this 
Act, the Administrator of the Federal Aviation Administration 
shall initiate a rulemaking to require each air carrier 
operating under part 121 of title 14, Code of Federal 
Regulations, to post on the Internet Web site of the air 
carrier the maximum dimensions of a child safety seat that can 
be used on each aircraft operated by the air carrier to enable 
passengers to determine which child safety seats can be used on 
those aircraft.

SEC. 413. SCHEDULE REDUCTION.

    (a) In General.--If the Administrator of the Federal 
Aviation Administration determines that--
            (1) the aircraft operations of air carriers during 
        any hour at an airport exceed the hourly maximum 
        departure and arrival rate established by the 
        Administrator for such operations; and
            (2) the operations in excess of the maximum 
        departure and arrival rate for such hour at such 
        airport are likely to have a significant adverse effect 
        on the safe and efficient use of navigable airspace,
the Administrator shall convene a meeting of such carriers to 
reduce pursuant to section 41722 of title 49, United States 
Code, on a voluntary basis, the number of such operations so as 
not to exceed the maximum departure and arrival rate.
    (b) No Agreement.--If the air carriers participating in a 
meeting with respect to an airport under subsection (a) are not 
able to agree to a reduction in the number of flights to and 
from the airport so as not to exceed the maximum departure and 
arrival rate, the Administrator shall take such action as is 
necessary to ensure such reduction is implemented.
    (c) Subsequent Schedule Increases.--Subsequent to any 
reduction in operations under subsection (a) or (b) at an 
airport, if the Administrator determines that the hourly number 
of aircraft operations at that airport is less than the amount 
that can be handled safely and efficiently, the Administrator 
shall ensure that priority is given to United States air 
carriers in permitting additional aircraft operations with 
respect to that hour.

SEC. 414. RONALD REAGAN WASHINGTON NATIONAL AIRPORT SLOT EXEMPTIONS.

    (a) Increase in Number of Slot Exemptions.--Section 41718 
is amended by adding at the end the following:
    ``(g) Additional Slot Exemptions.--
            ``(1) Increase in slot exemptions.--Not later than 
        90 days after the date of enactment of the FAA 
        Modernization and Reform Act of 2012, the Secretary 
        shall grant, by order 16 exemptions from--
                    ``(A) the application of sections 
                49104(a)(5), 49109, and 41714 to air carriers 
                to operate limited frequencies and aircraft on 
                routes between Ronald Reagan Washington 
                National Airport and airports located beyond 
                the perimeter described in section 49109; and
                    ``(B) the requirements of subparts K and S 
                of part 93, Code of Federal Regulations.
            ``(2) New entrants and limited incumbents.--Of the 
        slot exemptions made available under paragraph (1), the 
        Secretary shall make 8 available to limited incumbent 
        air carriers or new entrant air carriers (as such terms 
        are defined in section 41714(h)). Such exemptions shall 
        be allocated pursuant to the application process 
        established by the Secretary under subsection (d). The 
        Secretary shall consider the extent to which the 
        exemptions will--
                    ``(A) provide air transportation with 
                domestic network benefits in areas beyond the 
                perimeter described in section 49109;
                    ``(B) increase competition in multiple 
                markets;
                    ``(C) not reduce travel options for 
                communities served by small hub airports and 
                medium hub airports within the perimeter 
                described in section 49109;
                    ``(D) not result in meaningfully increased 
                travel delays;
                    ``(E) enhance options for nonstop travel to 
                and from the beyond-perimeter airports that 
                will be served as a result of those exemptions;
                    ``(F) have a positive impact on the overall 
                level of competition in the markets that will 
                be served as a result of those exemptions; or
                    ``(G) produce public benefits, including 
                the likelihood that the service to airports 
                located beyond the perimeter described in 
                section 49109 will result in lower fares, 
                higher capacity, and a variety of service 
                options.
            ``(3) Improved network slots.--Of the slot 
        exemptions made available under paragraph (1), the 
        Secretary shall make 8 available to incumbent air 
        carriers qualifying for status as a non-limited 
        incumbent carrier at Ronald Reagan Washington National 
        Airport as of the date of enactment of the FAA 
        Modernization and Reform Act of 2012. Each such non-
        limited incumbent air carrier--
                    ``(A) may operate up to a maximum of 2 of 
                the newly authorized slot exemptions;
                    ``(B) prior to exercising an exemption made 
                available under paragraph (1), shall 
                discontinue the use of a slot for service 
                between Ronald Reagan Washington National 
                Airport and a large hub airport within the 
                perimeter as described in section 49109, and 
                operate, in place of such service, service 
                between Ronald Reagan Washington National 
                Airport and an airport located beyond the 
                perimeter described in section 49109;
                    ``(C) shall be entitled to return of the 
                slot by the Secretary if use of the exemption 
                made available to the carrier under paragraph 
                (1) is discontinued;
                    ``(D) shall have sole discretion concerning 
                the use of an exemption made available under 
                paragraph (1), including the initial or any 
                subsequent beyond perimeter destinations to be 
                served; and
                    ``(E) shall file a notice of intent with 
                the Secretary and subsequent notices of intent, 
                when appropriate, to inform the Secretary of 
                any change in circumstances concerning the use 
                of any exemption made available under paragraph 
                (1).
            ``(4) Notices of intent.--Notices of intent under 
        paragraph (3)(E) shall specify the beyond perimeter 
        destination to be served and the slots the carrier 
        shall discontinue using to serve a large hub airport 
        located within the perimeter.
            ``(5) Conditions.--Beyond-perimeter flight 
        operations carried out by an air carrier using an 
        exemption granted under this subsection shall be 
        subject to the following conditions:
                    ``(A) An air carrier may not operate a 
                multi-aisle or widebody aircraft in conducting 
                such operations.
                    ``(B) An air carrier granted an exemption 
                under this subsection is prohibited from 
                transferring the rights to its beyond-perimeter 
                exemptions pursuant to section 41714(j).
    ``(h) Scheduling Priority.--In administering this section, 
the Secretary shall--
            ``(1) afford a scheduling priority to operations 
        conducted by new entrant air carriers and limited 
        incumbent air carriers over operations conducted by 
        other air carriers granted additional slot exemptions 
        under subsection (g) for service to airports located 
        beyond the perimeter described in section 49109;
            ``(2) afford a scheduling priority to slot 
        exemptions currently held by new entrant air carriers 
        and limited incumbent air carriers for service to 
        airports located beyond the perimeter described in 
        section 49109, to the extent necessary to protect 
        viability of such service; and
            ``(3) consider applications from foreign air 
        carriers that are certificated by the government of 
        Canada if such consideration is required by the 
        bilateral aviation agreement between the United States 
        and Canada and so long as the conditions and 
        limitations under this section apply to such foreign 
        air carriers.''.
    (b) Hourly Limitation.--Section 41718(c)(2) is amended to 
read as follows:
            ``(2) General exemptions.--
                    ``(A) Hourly limitation.--The exemptions 
                granted--
                            ``(i) under subsections (a) and (b) 
                        and departures authorized under 
                        subsection (g)(2) may not be for 
                        operations between the hours of 10:00 
                        p.m. and 7:00 a.m.; and
                            ``(ii) under subsections (a), (b), 
                        and (g) may not increase the number of 
                        operations at Ronald Reagan Washington 
                        National Airport in any 1-hour period 
                        during the hours between 7:00 a.m. and 
                        9:59 p.m. by more than 5 operations.
                    ``(B) Use of existing slots.--A non-limited 
                incumbent air carrier utilizing an exemption 
                authorized under subsection (g)(3) for an 
                arrival permitted between the hours of 10:01 
                p.m. and 11:00 p.m. under this section shall 
                discontinue use of an existing slot during the 
                same time period the arrival exemption is 
                operated.''.
    (c) Limited Incumbent Definition.--Section 41714(h)(5) is 
amended--
            (1) in subparagraph (A) by striking ``20'' and 
        inserting ``40'';
            (2) by amending subparagraph (B) to read as 
        follows:
                    ``(B) for purposes of such sections, the 
                term `slot' shall not include--
                            ``(i) `slot exemptions';
                            ``(ii) slots operated by an air 
                        carrier under a fee-for-service 
                        arrangement for another air carrier, if 
                        the air carrier operating such slots 
                        does not sell flights in its own name, 
                        and is under common ownership with an 
                        air carrier that seeks to qualify as a 
                        limited incumbent and that sells 
                        flights in its own name; or
                            ``(iii) slots held under a sale and 
                        license-back financing arrangement with 
                        another air carrier, where the slots 
                        are under the marketing control of the 
                        other air carrier; and''.
    (d) Transfer of Exemptions.--Section 41714(j) is amended by 
striking the period at the end and inserting ``, except through 
an air carrier merger or acquisition.''.
    (e) Definition of Airport Purposes.--Section 49104(a)(2)(A) 
is amended--
            (1) in clause (ii) by striking ``or'' at the end;
            (2) in clause (iii) by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(iv) a business or activity not 
                        inconsistent with the needs of aviation 
                        that has been approved by the 
                        Secretary.''.

SEC. 415. PASSENGER AIR SERVICE IMPROVEMENTS.

    (a) In General.--Subtitle VII is amended by inserting after 
chapter 421 the following:

           ``CHAPTER 423--PASSENGER AIR SERVICE IMPROVEMENTS

``Sec.
``42301. Emergency contingency plans.
``42302. Consumer complaints.
``42303. Use of insecticides in passenger aircraft.

``Sec. 42301. Emergency contingency plans

    ``(a) Submission of Air Carrier and Airport Plans.--Not 
later than 90 days after the date of enactment of this section, 
each of the following air carriers and airport operators shall 
submit to the Secretary of Transportation for review and 
approval an emergency contingency plan in accordance with the 
requirements of this section:
            ``(1) An air carrier providing covered air 
        transportation at a commercial airport.
            ``(2) An operator of a commercial airport.
            ``(3) An operator of an airport used by an air 
        carrier described in paragraph (1) for diversions.
    ``(b) Air Carrier Plans.--
            ``(1) Plans for individual airports.--An air 
        carrier shall submit an emergency contingency plan 
        under subsection (a) for--
                    ``(A) each airport at which the carrier 
                provides covered air transportation; and
                    ``(B) each airport at which the carrier has 
                flights for which the carrier has primary 
                responsibility for inventory control.
            ``(2) Contents.--An emergency contingency plan 
        submitted by an air carrier for an airport under 
        subsection (a) shall contain a description of how the 
        carrier will--
                    ``(A) provide adequate food, potable water, 
                restroom facilities, comfortable cabin 
                temperatures, and access to medical treatment 
                for passengers onboard an aircraft at the 
                airport when the departure of a flight is 
                delayed or the disembarkation of passengers is 
                delayed;
                    ``(B) share facilities and make gates 
                available at the airport in an emergency; and
                    ``(C) allow passengers to deplane following 
                an excessive tarmac delay in accordance with 
                paragraph (3).
            ``(3) Deplaning following an excessive tarmac 
        delay.--For purposes of paragraph (2)(C), an emergency 
        contingency plan submitted by an air carrier under 
        subsection (a) shall incorporate the following 
        requirements:
                    ``(A) A passenger shall have the option to 
                deplane an aircraft and return to the airport 
                terminal when there is an excessive tarmac 
                delay.
                    ``(B) The option described in subparagraph 
                (A) shall be offered to a passenger even if a 
                flight in covered air transportation is 
                diverted to a commercial airport other than the 
                originally scheduled airport.
                    ``(C) Notwithstanding the requirements 
                described in subparagraphs (A) and (B), a 
                passenger shall not have an option to deplane 
                an aircraft and return to the airport terminal 
                in the case of an excessive tarmac delay if--
                            ``(i) an air traffic controller 
                        with authority over the aircraft 
                        advises the pilot in command that 
                        permitting a passenger to deplane would 
                        significantly disrupt airport 
                        operations; or
                            ``(ii) the pilot in command 
                        determines that permitting a passenger 
                        to deplane would jeopardize passenger 
                        safety or security.
    ``(c) Airport Plans.--An emergency contingency plan 
submitted by an airport operator under subsection (a) shall 
contain a description of how the operator, to the maximum 
extent practicable, will--
            ``(1) provide for the deplanement of passengers 
        following excessive tarmac delays;
            ``(2) provide for the sharing of facilities and 
        make gates available at the airport in an emergency; 
        and
            ``(3) provide a sterile area following excessive 
        tarmac delays for passengers who have not yet cleared 
        United States Customs and Border Protection.
    ``(d) Updates.--
            ``(1) Air carriers.--An air carrier shall update 
        each emergency contingency plan submitted by the 
        carrier under subsection (a) every 3 years and submit 
        the update to the Secretary for review and approval.
            ``(2) Airports.--An airport operator shall update 
        each emergency contingency plan submitted by the 
        operator under subsection (a) every 5 years and submit 
        the update to the Secretary for review and approval.
    ``(e) Approval.--
            ``(1) In general.--Not later than 60 days after the 
        date of the receipt of an emergency contingency plan 
        submitted under subsection (a) or an update submitted 
        under subsection (d), the Secretary shall review and 
        approve or, if necessary, require modifications to the 
        plan or update to ensure that the plan or update will 
        effectively address emergencies and provide for the 
        health and safety of passengers.
            ``(2) Failure to approve or require 
        modifications.--If the Secretary fails to approve or 
        require modifications to a plan or update under 
        paragraph (1) within the timeframe specified in that 
        paragraph, the plan or update shall be deemed to be 
        approved.
            ``(3) Adherence required.--An air carrier or 
        airport operator shall adhere to an emergency 
        contingency plan of the carrier or operator approved 
        under this section.
    ``(f) Minimum Standards.--The Secretary shall establish, as 
necessary or desirable, minimum standards for elements in an 
emergency contingency plan required to be submitted under this 
section.
    ``(g) Public Access.--An air carrier or airport operator 
required to submit an emergency contingency plan under this 
section shall ensure public access to the plan after its 
approval under this section on the Internet Web site of the 
carrier or operator or by such other means as determined by the 
Secretary.
    ``(h) Reports.--Not later than 30 days after any flight 
experiences an excessive tarmac delay, the air carrier 
responsible for such flight shall submit a written description 
of the incident and its resolution to the Aviation Consumer 
Protection Division of the Department of Transportation.
    ``(i) Definitions.--In this section, the following 
definitions apply:
            ``(1) Commercial airport.--The term `commercial 
        airport' means a large hub, medium hub, small hub, or 
        nonhub airport.
            ``(2) Covered air transportation.--The term 
        `covered air transportation' means scheduled or public 
        charter passenger air transportation provided by an air 
        carrier that operates an aircraft that as originally 
        designed has a passenger capacity of 30 or more seats.
            ``(3) Tarmac delay.--The term `tarmac delay' means 
        the period during which passengers are on board an 
        aircraft on the tarmac--
                    ``(A) awaiting takeoff after the aircraft 
                doors have been closed or after passengers have 
                been boarded if the passengers have not been 
                advised they are free to deplane; or
                    ``(B) awaiting deplaning after the aircraft 
                has landed.
            ``(4) Excessive tarmac delay.--The term `excessive 
        tarmac delay' means a tarmac delay that lasts for a 
        length of time, as determined by the Secretary.

``Sec. 42302. Consumer complaints

    ``(a) In General.--The Secretary of Transportation shall 
establish a consumer complaints toll-free hotline telephone 
number for the use of passengers in air transportation and 
shall take actions to notify the public of--
            ``(1) that telephone number; and
            ``(2) the Internet Web site of the Aviation 
        Consumer Protection Division of the Department of 
        Transportation.
    ``(b) Notice to Passengers on the Internet.--An air carrier 
or foreign air carrier providing scheduled air transportation 
using any aircraft that as originally designed has a passenger 
capacity of 30 or more passenger seats shall include on the 
Internet Web site of the carrier--
            ``(1) the hotline telephone number established 
        under subsection (a);
            ``(2) the e-mail address, telephone number, and 
        mailing address of the air carrier for the submission 
        of complaints by passengers about air travel service 
        problems; and
            ``(3) the Internet Web site and mailing address of 
        the Aviation Consumer Protection Division of the 
        Department of Transportation for the submission of 
        complaints by passengers about air travel service 
        problems.
    ``(c) Notice to Passengers on Boarding Documentation.--An 
air carrier or foreign air carrier providing scheduled air 
transportation using any aircraft that as originally designed 
has a passenger capacity of 30 or more passenger seats shall 
include the hotline telephone number established under 
subsection (a) on--
            ``(1) prominently displayed signs of the carrier at 
        the airport ticket counters in the United States where 
        the air carrier operates; and
            ``(2) any electronic confirmation of the purchase 
        of a passenger ticket for air transportation issued by 
        the air carrier.

``Sec. 42303. Use of insecticides in passenger aircraft

    ``(a) Information To Be Provided on the Internet.--The 
Secretary of Transportation shall establish, and make available 
to the general public, an Internet Web site that contains a 
listing of countries that may require an air carrier or foreign 
air carrier to treat an aircraft passenger cabin with 
insecticides prior to a flight in foreign air transportation to 
that country or to apply an aerosol insecticide in an aircraft 
cabin used for such a flight when the cabin is occupied with 
passengers.
    ``(b) Required Disclosures.--An air carrier, foreign air 
carrier, or ticket agent selling, in the United States, a 
ticket for a flight in foreign air transportation to a country 
listed on the Internet Web site established under subsection 
(a) shall refer the purchaser of the ticket to the Internet Web 
site established under subsection (a) for additional 
information.''.
    (b) Penalties.--Section 46301 is amended in subsections 
(a)(1)(A) and (c)(1)(A) by inserting ``chapter 423,'' after 
``chapter 421,''.
    (c) Applicability of Requirements.--Except as otherwise 
provided, the requirements of chapter 423 of title 49, United 
States Code, as added by this section, shall begin to apply 60 
days after the date of enactment of this Act.
    (d) Clerical Amendment.--The analysis for subtitle VII is 
amended by inserting after the item relating to chapter 421 the 
following:

``423. Passenger Air Service Improvements.......................42301''.

                   Subtitle B--Essential Air Service

SEC. 421. LIMITATION ON ESSENTIAL AIR SERVICE TO LOCATIONS THAT AVERAGE 
                    FEWER THAN 10 ENPLANEMENTS PER DAY.

    Section 41731 is amended--
            (1) in subsection (a)(1) by amending subparagraph 
        (B) to read as follows:
                            ``(B) had an average of 10 
                        enplanements per service day or more, 
                        as determined by the Secretary, during 
                        the most recent fiscal year beginning 
                        after September 30, 2012;'';
            (2) by amending subsection (c) to read as follows:
    ``(c) Exception for Locations in Alaska and Hawaii.--
Subparagraphs (B), (C), and (D) of subsection (a)(1) shall not 
apply with respect to locations in the State of Alaska or the 
State of Hawaii.'';
            (3) by amending subsection (d) to read as follows:
    ``(d) Exceptions for Locations More Than 175 Driving Miles 
From the Nearest Large or Medium Hub Airport.--Subsection 
(a)(1)(B) shall not apply with respect to locations that are 
more than 175 driving miles from the nearest large or medium 
hub airport.''; and
            (4) by adding at the end the following:
    ``(e) Waivers.--For fiscal year 2013 and each fiscal year 
thereafter, the Secretary may waive, on an annual basis, 
subsection (a)(1)(B) with respect to a location if the location 
demonstrates to the Secretary's satisfaction that the reason 
the location averages fewer than 10 enplanements per day is due 
to a temporary decline in enplanements.
    ``(f) Definition.--For purposes of subsection (a)(1)(B), 
the term `enplanements' means the number of passengers 
enplaning, at an eligible place, on flights operated by the 
subsidized essential air service carrier.''.

SEC. 422. ESSENTIAL AIR SERVICE ELIGIBILITY.

    Section 41731(a)(1) is further amended--
            (1) in subparagraph (C) by striking the period at 
        the end and inserting ``; and''; and
            (2) by adding at the end the following:
                    ``(D) is a community that, at any time 
                during the period between September 30, 2010, 
                and September 30, 2011, inclusive--
                            ``(i) received essential air 
                        service for which compensation was 
                        provided to an air carrier under this 
                        subchapter; or
                            ``(ii) received a 90-day notice of 
                        intent to terminate essential air 
                        service and the Secretary required the 
                        air carrier to continue to provide such 
                        service to the community.''.

SEC. 423. ESSENTIAL AIR SERVICE MARKETING.

    Section 41733(c)(1) is amended--
            (1) by redesignating subparagraph (E) as 
        subparagraph (F);
            (2) by striking ``and'' at the end of subparagraph 
        (D); and
            (3) by inserting after subparagraph (D) the 
        following:
            ``(E) whether the air carrier has included a plan 
        in its proposal to market its services to the 
        community; and''.

SEC. 424. NOTICE TO COMMUNITIES PRIOR TO TERMINATION OF ELIGIBILITY FOR 
                    SUBSIDIZED ESSENTIAL AIR SERVICE.

    Section 41733 is amended by adding at the end the 
following:
    ``(f) Notice to Communities Prior to Termination of 
Eligibility.--
            ``(1) In general.--The Secretary shall notify each 
        community receiving basic essential air service for 
        which compensation is being paid under this subchapter 
        on or before the 45th day before issuing any final 
        decision to end the payment of such compensation due to 
        a determination by the Secretary that providing such 
        service requires a rate of subsidy per passenger in 
        excess of the subsidy cap.
            ``(2) Procedures to avoid termination.--The 
        Secretary shall establish, by order, procedures by 
        which each community notified of an impending loss of 
        subsidy under paragraph (1) may work directly with an 
        air carrier to ensure that the air carrier is able to 
        submit a proposal to the Secretary to provide essential 
        air service to such community for an amount of 
        compensation that would not exceed the subsidy cap.
            ``(3) Assistance provided.--The Secretary shall 
        provide, by order, information to each community 
        notified under paragraph (1) regarding--
                    ``(A) the procedures established pursuant 
                to paragraph (2); and
                    ``(B) the maximum amount of compensation 
                that could be provided under this subchapter to 
                an air carrier serving such community that 
                would comply with basic essential air service 
                and the subsidy cap.''.

SEC. 425. RESTORATION OF ELIGIBILITY TO A PLACE DETERMINED TO BE 
                    INELIGIBLE FOR SUBSIDIZED ESSENTIAL AIR SERVICE.

    Section 41733 is further amended by adding at the end the 
following:
    ``(g) Proposals of State and Local Governments to Restore 
Eligibility.--
            ``(1) In general.--If the Secretary, after the date 
        of enactment of this subsection, ends payment of 
        compensation to an air carrier for providing basic 
        essential air service to an eligible place because the 
        Secretary has determined that providing such service 
        requires a rate of subsidy per passenger in excess of 
        the subsidy cap or that the place is no longer an 
        eligible place pursuant to section 41731(a)(1)(B), a 
        State or local government may submit to the Secretary a 
        proposal for restoring compensation for such service. 
        Such proposal shall be a joint proposal of the State or 
        local government and an air carrier.
            ``(2) Determination by secretary.--The Secretary 
        shall issue an order restoring the eligibility of the 
        otherwise eligible place to receive basic essential air 
        service by an air carrier for compensation under 
        subsection (c) if--
                    ``(A) a State or local government submits 
                to the Secretary a proposal under paragraph 
                (1); and
                    ``(B) the Secretary determines that--
                            ``(i) the rate of subsidy per 
                        passenger under the proposal does not 
                        exceed the subsidy cap;
                            ``(ii) the proposal is likely to 
                        result in an average number of 
                        enplanements per day that will satisfy 
                        the requirement in section 
                        41731(a)(1)(B); and
                            ``(iii) the proposal is consistent 
                        with the legal and regulatory 
                        requirements of the essential air 
                        service program.
    ``(h) Subsidy Cap Defined.--In this section, the term 
`subsidy cap' means the subsidy-per-passenger cap established 
by section 332 of the Department of Transportation and Related 
Agencies Appropriations Act, 2000 (Public Law 106-69; 113 Stat. 
1022).''.

SEC. 426. ADJUSTMENTS TO COMPENSATION FOR SIGNIFICANTLY INCREASED 
                    COSTS.

    (a) Emergency Across-the-Board Adjustment.--Subject to the 
availability of funds, the Secretary may increase the rates of 
compensation payable to air carriers under subchapter II of 
chapter 417 of title 49, United States Code, to compensate such 
carriers for increased aviation fuel costs without regard to 
any agreement or requirement relating to the renegotiation of 
contracts or any notice requirement under section 41734 of such 
title.
    (b) Expedited Process for Adjustments to Individual 
Contracts.--
            (1) In general.--Section 41734(d) is amended by 
        striking ``continue to pay'' and all that follows 
        through ``compensation sufficient--'' and inserting 
        ``provide the carrier with compensation sufficient--''.
            (2) Effective date.--The amendment made by 
        paragraph (1) shall apply to compensation to air 
        carriers for air service provided after the 30th day 
        following the date of enactment of this Act.
    (c) Subsidy Cap.--Subject to the availability of funds, the 
Secretary may waive, on a case-by-case basis, the subsidy-per-
passenger cap established by section 332 of the Department of 
Transportation and Related Agencies Appropriations Act, 2000 
(Public Law 106-69; 113 Stat. 1022). A waiver issued under this 
subsection shall remain in effect for a limited period of time, 
as determined by the Secretary.

SEC. 427. ESSENTIAL AIR SERVICE CONTRACT GUIDELINES.

    (a) Compensation Guidelines.--Section 41737(a)(1) is 
amended--
            (1) by striking ``and'' at the end of subparagraph 
        (B);
            (2) in subparagraph (C) by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(D) include provisions under which the Secretary 
        may encourage an air carrier to improve air service for 
        which compensation is being paid under this subchapter 
        by incorporating financial incentives in an essential 
        air service contract based on specified performance 
        goals, including goals related to improving on-time 
        performance, reducing the number of flight 
        cancellations, establishing reasonable fares (including 
        joint fares beyond the hub airport), establishing 
        convenient connections to flights providing service 
        beyond hub airports, and increasing marketing efforts; 
        and
            ``(E) include provisions under which the Secretary 
        may execute a long-term essential air service contract 
        to encourage an air carrier to provide air service to 
        an eligible place if it would be in the public interest 
        to do so.''.
    (b) Deadline for Issuance of Revised Guidance.--Not later 
than 1 year after the date of enactment of this Act, the 
Secretary of Transportation shall issue revised guidelines 
governing the rate of compensation payable under subchapter II 
of chapter 417 that incorporate the amendments made by this 
section.
    (c) Update.--Not later than 2 years after the date of 
issuance of revised guidelines pursuant to subsection (b), the 
Secretary shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate an update of the extent to which the revised guidelines 
have been implemented and the impact, if any, such 
implementation has had on air carrier performance and community 
satisfaction with air service for which compensation is being 
paid under subchapter II of chapter 417.

SEC. 428. ESSENTIAL AIR SERVICE REFORM.

    (a) Authorization of Appropriations.--Section 41742(a) is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``for each fiscal year'' 
                before ``is authorized''; and
                    (B) by striking ``under this subchapter for 
                each fiscal year'' and inserting ``under this 
                subchapter''; and
            (2) in paragraph (2) by striking ``and $54,699,454 
        for the period beginning on October 1, 2011, and ending 
        on February 17, 2012,'' and inserting ``, $143,000,000 
        for fiscal year 2012, $118,000,000 for fiscal year 
        2013, $107,000,000 for fiscal year 2014, and 
        $93,000,000 for fiscal year 2015''.
    (b) Distribution of Additional Funds.--Section 41742(b) is 
amended to read as follows:
    ``(b) Distribution of Additional Funds.--Notwithstanding 
any other provision of law, in any fiscal year in which funds 
credited to the account established under section 45303, 
including the funds derived from fees imposed under the 
authority contained in section 45301(a), exceed the $50,000,000 
made available under subsection (a)(1), such funds shall be 
made available immediately for obligation and expenditure to 
carry out the essential air service program under this 
subchapter.''.
    (c) Availability of Funds.--Section 41742 is amended by 
adding at the end the following:
    ``(c) Availability of Funds.--The funds made available 
under this section shall remain available until expended.''.

SEC. 429. SMALL COMMUNITY AIR SERVICE.

    (a) Priorities.--Section 41743(c)(5) is amended--
            (1) by striking ``and'' at the end of subparagraph 
        (D);
            (2) in subparagraph (E) by striking ``fashion.'' 
        and inserting ``fashion; and''; and
            (3) by adding at the end the following:
                    ``(F) multiple communities cooperate to 
                submit a regional or multistate application to 
                consolidate air service into one regional 
                airport.''.
    (b) Extension of Authorization.--Section 41743(e)(2) is 
amended to read as follows:
            ``(2) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary 
        $6,000,000 for each of fiscal years 2012 through 2015 
        to carry out this section. Such sums shall remain 
        available until expended.''.

SEC. 430. REPEAL OF ESSENTIAL AIR SERVICE LOCAL PARTICIPATION PROGRAM.

    Section 41747, and the item relating to section 41747 in 
the analysis for chapter 417, are repealed.

SEC. 431. EXTENSION OF FINAL ORDER ESTABLISHING MILEAGE ADJUSTMENT 
                    ELIGIBILITY.

    Section 409(d) of the Vision 100--Century of Aviation 
Reauthorization Act (49 U.S.C. 41731 note) is amended by 
striking ``February 17, 2012.'' and inserting ``September 30, 
2015.''.

                  TITLE V--ENVIRONMENTAL STREAMLINING

SEC. 501. OVERFLIGHTS OF NATIONAL PARKS.

    (a) General Requirements.--Section 40128(a)(1)(C) is 
amended by inserting ``or voluntary agreement under subsection 
(b)(7)'' before ``for the park''.
    (b) Exemption for National Parks With 50 or Fewer Flights 
Each Year.--Section 40128(a) is amended by adding at the end 
the following:
            ``(5) Exemption for national parks with 50 or fewer 
        flights each year.--
                    ``(A) In general.--Notwithstanding 
                paragraph (1), a national park that has 50 or 
                fewer commercial air tour operations over the 
                park each year shall be exempt from the 
                requirements of this section, except as 
                provided in subparagraph (B).
                    ``(B) Withdrawal of exemption.--If the 
                Director determines that an air tour management 
                plan or voluntary agreement is necessary to 
                protect park resources and values or park 
                visitor use and enjoyment, the Director shall 
                withdraw the exemption of a park under 
                subparagraph (A).
                    ``(C) List of parks.--
                            ``(i) In general.--The Director and 
                        Administrator shall jointly publish a 
                        list each year of national parks that 
                        are covered by the exemption provided 
                        under this paragraph.
                            ``(ii) Notification of withdrawal 
                        of exemption.--The Director shall 
                        inform the Administrator, in writing, 
                        of each determination to withdraw an 
                        exemption under subparagraph (B).
                    ``(D) Annual report.--A commercial air tour 
                operator conducting commercial air tour 
                operations over a national park that is exempt 
                from the requirements of this section shall 
                submit to the Administrator and the Director a 
                report each year that includes the number of 
                commercial air tour operations the operator 
                conducted during the preceding 1-year period 
                over such park.''.
    (c) Air Tour Management Plans.--Section 40128(b) is 
amended--
            (1) in paragraph (1) by adding at the end the 
        following:
                    ``(C) Exception.--An application to begin 
                commercial air tour operations at Crater Lake 
                National Park may be denied without the 
                establishment of an air tour management plan by 
                the Director of the National Park Service if 
                the Director determines that such operations 
                would adversely affect park resources or 
                visitor experiences.''; and
            (2) by adding at the end the following:
            ``(7) Voluntary agreements.--
                    ``(A) In general.--As an alternative to an 
                air tour management plan, the Director and the 
                Administrator may enter into a voluntary 
                agreement with a commercial air tour operator 
                (including a new entrant commercial air tour 
                operator and an operator that has interim 
                operating authority) that has applied to 
                conduct commercial air tour operations over a 
                national park to manage commercial air tour 
                operations over such national park.
                    ``(B) Park protection.--A voluntary 
                agreement under this paragraph with respect to 
                commercial air tour operations over a national 
                park shall address the management issues 
                necessary to protect the resources of such park 
                and visitor use of such park without 
                compromising aviation safety or the air traffic 
                control system and may--
                            ``(i) include provisions such as 
                        those described in subparagraphs (B) 
                        through (E) of paragraph (3);
                            ``(ii) include provisions to ensure 
                        the stability of, and compliance with, 
                        the voluntary agreement; and
                            ``(iii) provide for fees for such 
                        operations.
                    ``(C) Public review.--The Director and the 
                Administrator shall provide an opportunity for 
                public review of a proposed voluntary agreement 
                under this paragraph and shall consult with any 
                Indian tribe whose tribal lands are, or may be, 
                flown over by a commercial air tour operator 
                under a voluntary agreement under this 
                paragraph. After such opportunity for public 
                review and consultation, the voluntary 
                agreement may be implemented without further 
                administrative or environmental process beyond 
                that described in this subsection.
                    ``(D) Termination.--
                            ``(i) In general.--A voluntary 
                        agreement under this paragraph may be 
                        terminated at any time at the 
                        discretion of--
                                    ``(I) the Director, if the 
                                Director determines that the 
                                agreement is not adequately 
                                protecting park resources or 
                                visitor experiences; or
                                    ``(II) the Administrator, 
                                if the Administrator determines 
                                that the agreement is adversely 
                                affecting aviation safety or 
                                the national aviation system.
                            ``(ii) Effect of termination.--If a 
                        voluntary agreement with respect to a 
                        national park is terminated under this 
                        subparagraph, the operators shall 
                        conform to the requirements for interim 
                        operating authority under subsection 
                        (c) until an air tour management plan 
                        for the park is in effect.''.
    (d) Interim Operating Authority.--Section 40128(c) is 
amended--
            (1) by striking paragraph (2)(I) and inserting the 
        following:
                    ``(I) may allow for modifications of the 
                interim operating authority without further 
                environmental review beyond that described in 
                this subsection, if--
                            ``(i) adequate information 
                        regarding the existing and proposed 
                        operations of the operator under the 
                        interim operating authority is provided 
                        to the Administrator and the Director;
                            ``(ii) the Administrator determines 
                        that there would be no adverse impact 
                        on aviation safety or the air traffic 
                        control system; and
                            ``(iii) the Director agrees with 
                        the modification, based on the 
                        professional expertise of the Director 
                        regarding the protection of the 
                        resources, values, and visitor use and 
                        enjoyment of the park.''; and
            (2) in paragraph (3)(A) by striking ``if the 
        Administrator determines'' and all that follows through 
        the period at the end and inserting ``without further 
        environmental process beyond that described in this 
        paragraph, if--
                            ``(i) adequate information on the 
                        proposed operations of the operator is 
                        provided to the Administrator and the 
                        Director by the operator making the 
                        request;
                            ``(ii) the Administrator agrees 
                        that there would be no adverse impact 
                        on aviation safety or the air traffic 
                        control system; and
                            ``(iii) the Director agrees, based 
                        on the Director's professional 
                        expertise regarding the protection of 
                        park resources and values and visitor 
                        use and enjoyment.''.
    (e) Operator Reports.--Section 40128 is amended--
            (1) by redesignating subsections (d), (e), and (f) 
        as subsections (e), (f), and (g), respectively; and
            (2) by inserting after subsection (c) the 
        following:
    ``(d) Commercial Air Tour Operator Reports.--
            ``(1) Report.--Each commercial air tour operator 
        conducting a commercial air tour operation over a 
        national park under interim operating authority granted 
        under subsection (c) or in accordance with an air tour 
        management plan or voluntary agreement under subsection 
        (b) shall submit to the Administrator and the Director 
        a report regarding the number of commercial air tour 
        operations over each national park that are conducted 
        by the operator and such other information as the 
        Administrator and Director may request in order to 
        facilitate administering the provisions of this 
        section.
            ``(2) Report submission.--Not later than 90 days 
        after the date of enactment of the FAA Modernization 
        and Reform Act of 2012, the Administrator and the 
        Director shall jointly issue an initial request for 
        reports under this subsection. The reports shall be 
        submitted to the Administrator and the Director with a 
        frequency and in a format prescribed by the 
        Administrator and the Director.''.

SEC. 502. STATE BLOCK GRANT PROGRAM.

    (a) General Requirements.--Section 47128(a) is amended--
            (1) in the first sentence by striking ``prescribe 
        regulations'' and inserting ``issue guidance''; and
            (2) in the second sentence by striking 
        ``regulations'' and inserting ``guidance''.
    (b) Applications and Selection.--Section 47128(b)(4) is 
amended by inserting before the semicolon the following: ``, 
including the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), State and local environmental policy 
acts, Executive orders, agency regulations and guidance, and 
other Federal environmental requirements''.
    (c) Environmental Analysis and Coordination Requirements.--
Section 47128 is amended by adding at the end the following:
    ``(d) Environmental Analysis and Coordination 
Requirements.--A Federal agency, other than the Federal 
Aviation Administration, that is responsible for issuing an 
approval, license, or permit to ensure compliance with a 
Federal environmental requirement applicable to a project or 
activity to be carried out by a State using amounts from a 
block grant made under this section shall--
            ``(1) coordinate and consult with the State;
            ``(2) use the environmental analysis prepared by 
        the State for the project or activity if such analysis 
        is adequate; and
            ``(3) as necessary, consult with the State to 
        describe the supplemental analysis the State must 
        provide to meet applicable Federal requirements.''.

SEC. 503. AIRPORT FUNDING OF SPECIAL STUDIES OR REVIEWS.

    Section 47173(a) is amended by striking ``services of 
consultants in order to'' and all that follows through the 
period at the end and inserting ``services of consultants--
            ``(1) to facilitate the timely processing, review, 
        and completion of environmental activities associated 
        with an airport development project;
            ``(2) to conduct special environmental studies 
        related to an airport project funded with Federal 
        funds;
            ``(3) to conduct special studies or reviews to 
        support approved noise compatibility measures described 
        in part 150 of title 14, Code of Federal Regulations;
            ``(4) to conduct special studies or reviews to 
        support environmental mitigation in a record of 
        decision or finding of no significant impact by the 
        Federal Aviation Administration; and
            ``(5) to facilitate the timely processing, review, 
        and completion of environmental activities associated 
        with new or amended flight procedures, including 
        performance-based navigation procedures, such as 
        required navigation performance procedures and area 
        navigation procedures.''.

SEC. 504. GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT PROCEDURES.

    Section 47504 is amended by adding at the end the 
following:
    ``(e) Grants for Assessment of Flight Procedures.--
            ``(1) In general.--In accordance with subsection 
        (c)(1), the Secretary may make a grant to an airport 
        operator to assist in completing environmental review 
        and assessment activities for proposals to implement 
        flight procedures at such airport that have been 
        approved as part of an airport noise compatibility 
        program under subsection (b).
            ``(2) Additional staff.--The Administrator may 
        accept funds from an airport operator, including funds 
        provided to the operator under paragraph (1), to hire 
        additional staff or obtain the services of consultants 
        in order to facilitate the timely processing, review, 
        and completion of environmental activities associated 
        with proposals to implement flight procedures at such 
        airport that have been approved as part of an airport 
        noise compatibility program under subsection (b).
            ``(3) Receipts credited as offsetting 
        collections.--Notwithstanding section 3302 of title 31, 
        any funds accepted under this section--
                    ``(A) shall be credited as offsetting 
                collections to the account that finances the 
                activities and services for which the funds are 
                accepted;
                    ``(B) shall be available for expenditure 
                only to pay the costs of activities and 
                services for which the funds are accepted; and
                    ``(C) shall remain available until 
                expended.''.

SEC. 505. DETERMINATION OF FAIR MARKET VALUE OF RESIDENTIAL PROPERTIES.

    Section 47504 (as amended by this Act) is further amended 
by adding at the end the following:
    ``(f) Determination of Fair Market Value of Residential 
Properties.--In approving a project to acquire residential real 
property using financial assistance made available under this 
section or chapter 471, the Secretary shall ensure that the 
appraisal of the property to be acquired disregards any 
decrease or increase in the fair market value of the real 
property caused by the project for which the property is to be 
acquired, or by the likelihood that the property would be 
acquired for the project, other than that due to physical 
deterioration within the reasonable control of the owner.''.

SEC. 506. PROHIBITION ON OPERATING CERTAIN AIRCRAFT WEIGHING 75,000 
                    POUNDS OR LESS NOT COMPLYING WITH STAGE 3 NOISE 
                    LEVELS.

    (a) In General.--Subchapter II of chapter 475 is amended by 
adding at the end the following:

``Sec. 47534. Prohibition on operating certain aircraft weighing 75,000 
                    pounds or less not complying with stage 3 noise 
                    levels

    ``(a) Prohibition.--Except as otherwise provided by this 
section, after December 31, 2015, a person may not operate a 
civil subsonic jet airplane with a maximum weight of 75,000 
pounds or less, and for which an airworthiness certificate 
(other than an experimental certificate) has been issued, to or 
from an airport in the United States unless the Secretary of 
Transportation finds that the aircraft complies with stage 3 
noise levels.
    ``(b) Aircraft Operations Outside 48 Contiguous States.--
Subsection (a) shall not apply to aircraft operated only 
outside the 48 contiguous States.
    ``(c) Temporary Operations.--The Secretary may allow 
temporary operation of an aircraft otherwise prohibited from 
operation under subsection (a) to or from an airport in the 
contiguous United States by granting a special flight 
authorization for one or more of the following circumstances:
            ``(1) To sell, lease, or use the aircraft outside 
        the 48 contiguous States.
            ``(2) To scrap the aircraft.
            ``(3) To obtain modifications to the aircraft to 
        meet stage 3 noise levels.
            ``(4) To perform scheduled heavy maintenance or 
        significant modifications on the aircraft at a 
        maintenance facility located in the contiguous 48 
        States.
            ``(5) To deliver the aircraft to an operator 
        leasing the aircraft from the owner or return the 
        aircraft to the lessor.
            ``(6) To prepare, park, or store the aircraft in 
        anticipation of any of the activities described in 
        paragraphs (1) through (5).
            ``(7) To provide transport of persons and goods in 
        the relief of an emergency situation.
            ``(8) To divert the aircraft to an alternative 
        airport in the 48 contiguous States on account of 
        weather, mechanical, fuel, air traffic control, or 
        other safety reasons while conducting a flight in order 
        to perform any of the activities described in 
        paragraphs (1) through (7).
    ``(d) Regulations.--The Secretary may prescribe such 
regulations or other guidance as may be necessary for the 
implementation of this section.
    ``(e) Statutory Construction.--
            ``(1) AIP grant assurances.--Noncompliance with 
        subsection (a) shall not be construed as a violation of 
        section 47107 or any regulations prescribed thereunder.
            ``(2) Pending applications.--Nothing in this 
        section may be construed as interfering with, 
        nullifying, or otherwise affecting determinations made 
        by the Federal Aviation Administration, or to be made 
        by the Administration, with respect to applications 
        under part 161 of title 14, Code of Federal 
        Regulations, that were pending on the date of enactment 
        of this section.''.
    (b) Conforming Amendments.--
            (1) Penalties.--Section 47531 is amended--
                    (A) in the section heading by striking 
                ``for violating sections 47528-47530''; and
                    (B) by striking ``47529, or 47530'' and 
                inserting ``47529, 47530, or 47534''.
            (2) Judicial review.--Section 47532 is amended by 
        inserting ``or 47534'' after ``47528-47531''.
            (3) Analysis.--The analysis for subchapter II of 
        chapter 475 is amended--
                    (A) by striking the item relating to 
                section 47531 and inserting the following:

``47531. Penalties.''; and
                    (B) by adding at the end the following:

``47534. Prohibition on operating certain aircraft weighing 75,000 
          pounds or less not complying with stage 3 noise levels.''.

SEC. 507. AIRCRAFT DEPARTURE QUEUE MANAGEMENT PILOT PROGRAM.

    (a) In General.--The Secretary of Transportation shall 
carry out a pilot program at not more than 5 public-use 
airports under which the Federal Aviation Administration shall 
use funds made available under section 48101(a) to test air 
traffic flow management tools, methodologies, and procedures 
that will allow air traffic controllers of the Administration 
to better manage the flow of aircraft on the ground and reduce 
the length of ground holds and idling time for aircraft.
    (b) Selection Criteria.--In selecting from among airports 
at which to conduct the pilot program, the Secretary shall give 
priority consideration to airports at which improvements in 
ground control efficiencies are likely to achieve the greatest 
fuel savings or air quality or other environmental benefits, as 
measured by the amount of reduced fuel, reduced emissions, or 
other environmental benefits per dollar of funds expended under 
the pilot program.
    (c) Maximum Amount.--Not more than a total of $2,500,000 
may be expended under the pilot program at any single public-
use airport.

SEC. 508. HIGH PERFORMANCE, SUSTAINABLE, AND COST-EFFECTIVE AIR TRAFFIC 
                    CONTROL FACILITIES.

    The Administrator of the Federal Aviation Administration 
may implement, to the extent practicable, sustainable practices 
for the incorporation of energy-efficient design, equipment, 
systems, and other measures in the construction and major 
renovation of air traffic control facilities of the 
Administration in order to reduce energy consumption at, 
improve the environmental performance of, and reduce the cost 
of maintenance for such facilities.

SEC. 509. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the European Union directive extending the 
        European Union's emissions trading proposal to 
        international civil aviation without working through 
        the International Civil Aviation Organization (in this 
        section referred to as the ``ICAO'') in a consensus-
        based fashion is inconsistent with the Convention on 
        International Civil Aviation, completed in Chicago on 
        December 7, 1944 (TIAS 1591; commonly known as the 
        ``Chicago Convention''), and other relevant air 
        services agreements and antithetical to building 
        international cooperation to address effectively the 
        problem of greenhouse gas emissions by aircraft engaged 
        in international civil aviation;
            (2) the European Union and its member states should 
        instead work with other contracting states of ICAO to 
        develop a consensual approach to addressing aircraft 
        greenhouse gas emissions through ICAO; and
            (3) officials of the United States Government, and 
        particularly the Secretary of Transportation and the 
        Administrator of the Federal Aviation Administration, 
        should use all political, diplomatic, and legal tools 
        at the disposal of the United States to ensure that the 
        European Union's emissions trading scheme is not 
        applied to aircraft registered by the United States or 
        the operators of those aircraft, including the mandates 
        that United States carriers provide emissions data to 
        and purchase emissions allowances from or surrender 
        emissions allowances to the European Union Member 
        States.

SEC. 510. AVIATION NOISE COMPLAINTS.

    Not later than 90 days after the date of enactment of this 
Act, each owner or operator of a large hub airport (as defined 
in section 40102(a) of title 49, United States Code) shall 
publish on an Internet Web site of the airport a telephone 
number to receive aviation noise complaints related to the 
airport.

SEC. 511. PILOT PROGRAM FOR ZERO-EMISSION AIRPORT VEHICLES.

    (a) In General.--Chapter 471 is amended by inserting after 
section 47136 the following:

``Sec. 47136a. Zero-emission airport vehicles and infrastructure

    ``(a) In General.--The Secretary of Transportation may 
establish a pilot program under which the sponsor of a public-
use airport may use funds made available under section 47117 or 
section 48103 for use at such airport to carry out activities 
associated with the acquisition and operation of zero-emission 
vehicles (as defined in section 88.102-94 of title 40, Code of 
Federal Regulations), including the construction or 
modification of infrastructure to facilitate the delivery of 
fuel and services necessary for the use of such vehicles.
    ``(b) Location in Air Quality Nonattainment Areas.--
            ``(1) In general.--A public-use airport may be 
        eligible for participation in the program only if the 
        airport is located in a nonattainment area (as defined 
        in section 171 of the Clean Air Act (42 U.S.C. 7501)).
            ``(2) Shortage of applicants.--If the Secretary 
        receives an insufficient number of applications from 
        public-use airports located in such areas, the 
        Secretary may permit public-use airports that are not 
        located in such areas to participate in the program.
    ``(c) Selection Criteria.--In selecting from among 
applicants for participation in the program, the Secretary 
shall give priority consideration to applicants that will 
achieve the greatest air quality benefits measured by the 
amount of emissions reduced per dollar of funds expended under 
the program.
    ``(d) Federal Share.--Notwithstanding any other provision 
of this subchapter, the Federal share of the costs of a project 
carried out under the program shall be 50 percent.
    ``(e) Technical Assistance.--
            ``(1) In general.--The sponsor of a public-use 
        airport carrying out activities funded under the 
        program may not use more than 10 percent of the amounts 
        made available under the program in any fiscal year for 
        technical assistance in carrying out such activities.
            ``(2) Use of university transportation center.--
        Participants in the program may use a university 
        transportation center receiving grants under section 
        5506 in the region of the airport to receive the 
        technical assistance described in paragraph (1).
    ``(f) Materials Identifying Best Practices.--The Secretary 
may develop and make available materials identifying best 
practices for carrying out activities funded under the program 
based on projects carried out under section 47136 and other 
sources.''.
    (b) Report on Effectiveness of Program.--Not later than 18 
months after the date of enactment of this Act, the Secretary 
of Transportation shall submit to the Committee on Science, 
Space, and Technology and the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a report containing--
            (1) an evaluation of the effectiveness of the 
        program established by section 47136a of title 49, 
        United States Code (as added by this section);
            (2) the performance measures used to measure such 
        effectiveness, such as the goals for the projects 
        implemented and the amount of emissions reduction 
        achieved through these projects;
            (3) an assessment of the sufficiency of the data 
        collected during the program to make a decision on 
        whether or not to implement the program;
            (4) an identification of all public-use airports 
        that expressed an interest in participating in the 
        program; and
            (5) a description of the mechanisms used by the 
        Secretary to ensure that the information and expertise 
        gained by participants in the program is transferred 
        among the participants and to other interested parties, 
        including other public-use airports.
    (c) Conforming Amendment.--The analysis for such chapter is 
amended by inserting after the item relating to section 47136 
the following:

``47136a. Zero-emission airport vehicles and infrastructure.''.
    (d) Technical Amendment.--Section 47136(f)(2) is amended--
            (1) in the paragraph heading by striking ``Eligible 
        consortium'' and inserting ``University transportation 
        center''; and
            (2) by striking ``an eligible consortium'' and 
        inserting ``a university transportation center''.

SEC. 512. INCREASING THE ENERGY EFFICIENCY OF AIRPORT POWER SOURCES.

    (a) In General.--Chapter 471 is amended by inserting after 
section 47140 the following:

``Sec. 47140a. Increasing the energy efficiency of airport power 
                    sources

    ``(a) In General.--The Secretary of Transportation shall 
establish a program under which the Secretary shall encourage 
the sponsor of each public-use airport to assess the airport's 
energy requirements, including heating and cooling, base load, 
back-up power, and power for on-road airport vehicles and 
ground support equipment, in order to identify opportunities to 
increase energy efficiency at the airport.
    ``(b) Grants.--
            ``(1) In general.--The Secretary may make grants 
        from amounts made available under section 48103 to 
        assist airport sponsors that have completed the 
        assessment described in subsection (a) to acquire or 
        construct equipment, including hydrogen equipment and 
        related infrastructure, that will increase energy 
        efficiency at the airport.
            ``(2) Application.--To be eligible for a grant 
        under paragraph (1), the sponsor of a public-use 
        airport shall submit an application to the Secretary at 
        such time, in such manner, and containing such 
        information as the Secretary may require.''.
    (b) Conforming Amendment.--The analysis for such chapter is 
amended by inserting after the item relating to section 47140 
the following:

``47140a. Increasing the energy efficiency of airport power sources.''.

                TITLE VI--FAA EMPLOYEES AND ORGANIZATION

SEC. 601. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

    Section 40122(a) is amended--
            (1) by redesignating paragraphs (3) and (4) as 
        paragraphs (4) and (5), respectively; and
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) Dispute resolution.--
                    ``(A) Mediation.--If the Administrator does 
                not reach an agreement under paragraph (1) or 
                the provisions referred to in subsection 
                (g)(2)(C) with the exclusive bargaining 
                representative of the employees, the 
                Administrator and the bargaining 
                representative--
                            ``(i) shall use the services of the 
                        Federal Mediation and Conciliation 
                        Service to attempt to reach such 
                        agreement in accordance with part 1425 
                        of title 29, Code of Federal 
                        Regulations (as in effect on the date 
                        of enactment of the FAA Modernization 
                        and Reform Act of 2012); or
                            ``(ii) may by mutual agreement 
                        adopt alternative procedures for the 
                        resolution of disputes or impasses 
                        arising in the negotiation of the 
                        collective-bargaining agreement.
                    ``(B) Mid-term bargaining.--If the services 
                of the Federal Mediation and Conciliation 
                Service under subparagraph (A)(i) do not lead 
                to the resolution of issues in controversy 
                arising from the negotiation of a mid-term 
                collective-bargaining agreement, the Federal 
                Service Impasses Panel shall assist the parties 
                in resolving the impasse in accordance with 
                section 7119 of title 5.
                    ``(C) Binding arbitration for term 
                bargaining.--
                            ``(i) Assistance from federal 
                        service impasses panel.--If the 
                        services of the Federal Mediation and 
                        Conciliation Service under subparagraph 
                        (A)(i) do not lead to the resolution of 
                        issues in controversy arising from the 
                        negotiation of a term collective-
                        bargaining agreement, the Administrator 
                        and the exclusive bargaining 
                        representative of the employees (in 
                        this subparagraph referred to as the 
                        `parties') shall submit their issues in 
                        controversy to the Federal Service 
                        Impasses Panel. The Panel shall assist 
                        the parties in resolving the impasse by 
                        asserting jurisdiction and ordering 
                        binding arbitration by a private 
                        arbitration board consisting of 3 
                        members.
                            ``(ii) Appointment of arbitration 
                        board.--The Executive Director of the 
                        Panel shall provide for the appointment 
                        of the 3 members of a private 
                        arbitration board under clause (i) by 
                        requesting the Director of the Federal 
                        Mediation and Conciliation Service to 
                        prepare a list of not less than 15 
                        names of arbitrators with Federal 
                        sector experience and by providing the 
                        list to the parties. Not later than 10 
                        days after receiving the list, the 
                        parties shall each select one person 
                        from the list. The 2 arbitrators 
                        selected by the parties shall then 
                        select a third person from the list not 
                        later than 7 days after being selected. 
                        If either of the parties fails to 
                        select a person or if the 2 arbitrators 
                        are unable to agree on the third person 
                        in 7 days, the parties shall make the 
                        selection by alternately striking names 
                        on the list until one arbitrator 
                        remains.
                            ``(iii) Framing issues in 
                        controversy.--If the parties do not 
                        agree on the framing of the issues to 
                        be submitted for arbitration, the 
                        arbitration board shall frame the 
                        issues.
                            ``(iv) Hearings.--The arbitration 
                        board shall give the parties a full and 
                        fair hearing, including an opportunity 
                        to present evidence in support of their 
                        claims and an opportunity to present 
                        their case in person, by counsel, or by 
                        other representative as they may elect.
                            ``(v) Decisions.--The arbitration 
                        board shall render its decision within 
                        90 days after the date of its 
                        appointment. Decisions of the 
                        arbitration board shall be conclusive 
                        and binding upon the parties.
                            ``(vi) Matters for consideration.--
                        The arbitration board shall take into 
                        consideration such factors as--
                                    ``(I) the effect of its 
                                arbitration decisions on the 
                                Federal Aviation 
                                Administration's ability to 
                                attract and retain a qualified 
                                workforce;
                                    ``(II) the effect of its 
                                arbitration decisions on the 
                                Federal Aviation 
                                Administration's budget; and
                                    ``(III) any other factors 
                                whose consideration would 
                                assist the board in fashioning 
                                a fair and equitable award.
                            ``(vii) Costs.--The parties shall 
                        share costs of the arbitration equally.
            ``(3) Ratification of agreements.--Upon reaching a 
        voluntary agreement or at the conclusion of the binding 
        arbitration under paragraph (2)(C), the final 
        agreement, except for those matters decided by an 
        arbitration board, shall be subject to ratification by 
        the exclusive bargaining representative of the 
        employees, if so requested by the bargaining 
        representative, and the final agreement shall be 
        subject to approval by the head of the agency in 
        accordance with the provisions referred to in 
        subsection (g)(2)(C).''.

SEC. 602. PRESIDENTIAL RANK AWARD PROGRAM.

    Section 40122(g)(2) is amended--
            (1) in subparagraph (G) by striking ``and'' after 
        the semicolon;
            (2) in subparagraph (H) by striking ``Board.'' and 
        inserting ``Board; and''; and
            (3) by adding at the end the following:
                    ``(I) subsections (b), (c), and (d) of 
                section 4507 (relating to Meritorious Executive 
                or Distinguished Executive rank awards) and 
                subsections (b) and (c) of section 4507a 
                (relating to Meritorious Senior Professional or 
                Distinguished Senior Professional rank awards), 
                except that--
                            ``(i) for purposes of applying such 
                        provisions to the personnel management 
                        system--
                                    ``(I) the term `agency' 
                                means the Department of 
                                Transportation;
                                    ``(II) the term `senior 
                                executive' means a Federal 
                                Aviation Administration 
                                executive;
                                    ``(III) the term `career 
                                appointee' means a Federal 
                                Aviation Administration career 
                                executive; and
                                    ``(IV) the term `senior 
                                career employee' means a 
                                Federal Aviation Administration 
                                career senior professional;
                            ``(ii) receipt by a career 
                        appointee or a senior career employee 
                        of the rank of Meritorious Executive or 
                        Meritorious Senior Professional 
                        entitles the individual to a lump-sum 
                        payment of an amount equal to 20 
                        percent of annual basic pay, which 
                        shall be in addition to the basic pay 
                        paid under the Federal Aviation 
                        Administration Executive Compensation 
                        Plan; and
                            ``(iii) receipt by a career 
                        appointee or a senior career employee 
                        of the rank of Distinguished Executive 
                        or Distinguished Senior Professional 
                        entitles the individual to a lump-sum 
                        payment of an amount equal to 35 
                        percent of annual basic pay, which 
                        shall be in addition to the basic pay 
                        paid under the Federal Aviation 
                        Administration Executive Compensation 
                        Plan.''.

SEC. 603. COLLEGIATE TRAINING INITIATIVE STUDY.

    (a) Study.--The Comptroller General of the United States 
shall conduct a study on training options for graduates of the 
Collegiate Training Initiative program (in this section 
referred to as ``CTI'' programs) conducted under section 
44506(c) of title 49, United States Code.
    (b) Contents.--The study shall analyze the impact of 
providing as an alternative to the current training provided at 
the Mike Monroney Aeronautical Center of the Federal Aviation 
Administration a new air traffic controller orientation session 
at such Center for graduates of CTI programs followed by on-
the-job training for such new air traffic controllers who are 
graduates of CTI programs and shall include an analysis of--
            (1) the cost effectiveness of such an alternative 
        training approach; and
            (2) the effect that such an alternative training 
        approach would have on the overall quality of training 
        received by graduates of CTI programs.
    (c) Report.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller General shall submit to 
the Committee on Transportation and Infrastructure of the House 
of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of the 
study.

SEC. 604. FRONTLINE MANAGER STAFFING.

    (a) Study.--Not later than 45 days after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall commission an independent study 
on frontline manager staffing requirements in air traffic 
control facilities.
    (b) Considerations.--In conducting the study, the 
Administrator may take into consideration--
            (1) the managerial tasks expected to be performed 
        by frontline managers, including employee development, 
        management, and counseling;
            (2) the number of supervisory positions of 
        operation requiring watch coverage in each air traffic 
        control facility;
            (3) coverage requirements in relation to traffic 
        demand;
            (4) facility type;
            (5) complexity of traffic and managerial 
        responsibilities;
            (6) proficiency and training requirements; and
            (7) such other factors as the Administrator 
        considers appropriate.
    (c) Participation.--The Administrator shall ensure the 
participation of frontline managers who currently work in 
safety-related operational areas of the Administration.
    (d) Determinations.--The Administrator shall transmit any 
determinations made as a result of the study to the heads of 
the appropriate lines of business within the Administration, 
including the Chief Operating Officer of the Air Traffic 
Organization.
    (e) Report.--Not later than 9 months after the date of 
enactment of this Act, the Administrator 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 the results of the 
study and a description of any determinations submitted to the 
Chief Operating Officer under subsection (d).
    (f) Definition.--In this section, the term ``frontline 
manager'' means first-level, operational supervisors and 
managers who work in safety-related operational areas of the 
Administration.

SEC. 605. FAA TECHNICAL TRAINING AND STAFFING.

    (a) Study.--
            (1) In general.--The Administrator of the Federal 
        Aviation Administration shall conduct a study to assess 
        the adequacy of the Administrator's technical training 
        strategy and improvement plan for airway transportation 
        systems specialists (in this section referred to as 
        ``FAA systems specialists'').
            (2) Contents.--The study shall include--
                    (A) a review of the current technical 
                training strategy and improvement plan for FAA 
                systems specialists;
                    (B) recommendations to improve the 
                technical training strategy and improvement 
                plan needed by FAA systems specialists to be 
                proficient in the maintenance of the latest 
                technologies;
                    (C) a description of actions that the 
                Administration has undertaken to ensure that 
                FAA systems specialists receive up-to-date 
                training on the latest technologies; and
                    (D) a recommendation regarding the most 
                cost-effective approach to provide training to 
                FAA systems specialists.
            (3) Report.--Not later than 1 year after the date 
        of enactment of this Act, the Administrator shall 
        submit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate a report on the results of the study.
    (b) Workload of Systems Specialists.--
            (1) Study by national academy of sciences.--Not 
        later than 90 days after the date of enactment of this 
        Act, the Administrator of the Federal Aviation 
        Administration shall make appropriate arrangements for 
        the National Academy of Sciences to conduct a study of 
        the assumptions and methods used by the Federal 
        Aviation Administration to estimate staffing needs for 
        FAA systems specialists to ensure proper maintenance 
        and certification of the national airspace system.
            (2) Consultation.--In conducting the study, the 
        National Academy of Sciences shall--
                    (A) consult with the exclusive bargaining 
                representative certified under section 7111 of 
                title 5, United States Code; and
                    (B) include recommendations for objective 
                staffing standards that maintain the safety of 
                the national airspace system.
            (3) Report.--Not later than 1 year after the 
        initiation of the arrangements under paragraph (1), the 
        National Academy of Sciences shall submit to Congress a 
        report on the results of the study.

SEC. 606. SAFETY CRITICAL STAFFING.

    (a) In General.--Not later than October 1, 2012, the 
Administrator of the Federal Aviation Administration shall 
implement, in as cost-effective a manner as possible, the 
staffing model for aviation safety inspectors developed 
pursuant to the National Academy of Sciences study entitled 
``Staffing Standards for Aviation Safety Inspectors''. In doing 
so, the Administrator shall consult with interested persons, 
including the exclusive bargaining representative for aviation 
safety inspectors certified under section 7111 of title 5, 
United States Code.
    (b) Report.--Not later than January 1 of each year 
beginning after September 30, 2012, the Administrator shall 
submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate, the staffing model 
described in subsection (a).

SEC. 607. AIR TRAFFIC CONTROL SPECIALIST QUALIFICATION TRAINING.

    Section 44506 is amended--
            (1) by redesignating subsection (d) as subsection 
        (e); and
            (2) by inserting after subsection (c) the 
        following:
    ``(d) Air Traffic Control Specialist Qualification 
Training.--
            ``(1) Appointment of air traffic control 
        specialists.--The Administrator is authorized to 
        appoint a qualified air traffic control specialist 
        candidate for placement in an airport traffic control 
        facility if the candidate has--
                    ``(A) received a control tower operator 
                certification (referred to in this subsection 
                as a `CTO' certificate); and
                    ``(B) satisfied all other applicable 
                qualification requirements for an air traffic 
                control specialist position, including 
                successful completion of orientation training 
                at the Federal Aviation Administration Academy.
            ``(2) Compensation and benefits.--An individual 
        appointed under paragraph (1) shall receive the same 
        compensation and benefits, and be treated in the same 
        manner as, any other individual appointed as a 
        developmental air traffic controller.
            ``(3) Report.--Not later than 2 years after the 
        date of enactment of the FAA Modernization and Reform 
        Act of 2012, the Administrator shall submit to Congress 
        a report that evaluates the effectiveness of the air 
        traffic control specialist qualification training 
        provided pursuant to this section, including the 
        graduation rates of candidates who received a CTO 
        certificate and are working in airport traffic control 
        facilities.
            ``(4) Additional appointments.--If the 
        Administrator determines that air traffic control 
        specialists appointed pursuant to this subsection are 
        more successful in carrying out the duties of an air 
        traffic controller than air traffic control specialists 
        hired from the general public without any such 
        certification, the Administrator shall increase, to the 
        maximum extent practicable, the number of appointments 
        of candidates who possess such certification.
            ``(5) Reimbursement for travel expenses associated 
        with certifications.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Administrator may accept reimbursement 
                from an educational entity that provides 
                training to an air traffic control specialist 
                candidate to cover reasonable travel expenses 
                of the Administrator associated with issuing 
                certifications to such candidates.
                    ``(B) Treatment of reimbursements.--
                Notwithstanding section 3302 of title 31, any 
                reimbursement authorized to be collected under 
                subparagraph (A) shall--
                            ``(i) be credited as offsetting 
                        collections to the account that 
                        finances the activities and services 
                        for which the reimbursement is 
                        accepted;
                            ``(ii) be available for expenditure 
                        only to pay the costs of activities and 
                        services for which the reimbursement is 
                        accepted, including all costs 
                        associated with collecting such 
                        reimbursement; and
                            ``(iii) remain available until 
                        expended.''.

SEC. 608. FAA AIR TRAFFIC CONTROLLER STAFFING.

    (a) Study by National Academy of Sciences.--Not later than 
90 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall 
enter into appropriate arrangements with the National Academy 
of Sciences to conduct a study of the air traffic controller 
standards used by the Federal Aviation Administration (in this 
section referred to as the ``FAA'') to estimate staffing needs 
for FAA air traffic controllers to ensure the safe operation of 
the national airspace system in the most cost effective manner.
    (b) Consultation.--In conducting the study, the National 
Academy of Sciences shall consult with the exclusive bargaining 
representative of employees of the FAA certified under section 
7111 of title 5, United States Code, and other interested 
parties, including Government and industry representatives.
    (c) Contents.--The study shall include--
            (1) an examination of representative information on 
        productivity, human factors, traffic activity, and 
        improved technology and equipment used in air traffic 
        control;
            (2) an examination of recent National Academy of 
        Sciences reviews of the complexity model performed by 
        MITRE Corporation that support the staffing standards 
        models for the en route air traffic control 
        environment; and
            (3) consideration of the Administration's current 
        and estimated budgets and the most cost-effective 
        staffing model to best leverage available funding.
    (d) Report.--Not later than 2 years after the date of 
enactment of this Act, the National Academy of Sciences shall 
submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
results of the study.

SEC. 609. AIR TRAFFIC CONTROLLER TRAINING AND SCHEDULING.

    (a) Training Strategy and Improvement Plan.--The 
Administrator of the Federal Aviation Administration shall 
conduct a study to assess the adequacy of training programs for 
air traffic controllers, including the Administrator's 
technical training strategy and improvement plan for air 
traffic controllers.
            (1) Contents.--The study shall include--
                    (A) a review of the current training system 
                for air traffic controllers, including the 
                technical training strategy and improvement 
                plan;
                    (B) an analysis of the competencies 
                required of air traffic controllers for 
                successful performance in the current and 
                future projected air traffic control 
                environment;
                    (C) an analysis of the competencies 
                projected to be required of air traffic 
                controllers as the Federal Aviation 
                Administration transitions to the Next 
                Generation Air Transportation System;
                    (D) an analysis of various training 
                approaches available to satisfy the air traffic 
                controller competencies identified under 
                subparagraphs (B) and (C);
                    (E) recommendations to improve the current 
                training system for air traffic controllers, 
                including the technical training strategy and 
                improvement plan; and
                    (F) the most cost-effective approach to 
                provide training to air traffic controllers.
            (2) Report.--Not later than 270 days after the date 
        of enactment of this Act, the Administrator shall 
        submit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate a report on the results of the study.
    (b) Facility Training Program.--Not later than 1 year after 
the date of enactment of this Act, the Administrator shall 
conduct a comprehensive review and evaluation of its Academy 
and facility training efforts. The Administrator shall--
            (1) clarify responsibility for oversight and 
        direction of the Academy's facility training program at 
        the national level;
            (2) communicate information concerning that 
        responsibility to facility managers; and
            (3) establish standards to identify the number of 
        developmental air traffic controllers that can be 
        accommodated at each facility, based on--
                    (A) the number of available on-the-job 
                training instructors;
                    (B) available classroom space;
                    (C) the number of available simulators;
                    (D) training requirements; and
                    (E) the number of recently placed new 
                personnel already in training.
    (c) Air Traffic Controller Scheduling.--Not later than 60 
days after the date of enactment of this Act, the Inspector 
General of the Department of Transportation shall conduct an 
assessment of the Federal Aviation Administration's air traffic 
controller scheduling practices.
            (1) Contents.--The assessment shall include, at a 
        minimum--
                    (A) an analysis of how air traffic 
                controller schedules are determined;
                    (B) an evaluation of how safety is taken 
                into consideration when schedules are being 
                developed and adopted;
                    (C) an evaluation of scheduling practices 
                that are cost effective to the Government;
                    (D) an examination of how scheduling 
                practices impact air traffic controller 
                performance; and
                    (E) any recommendations the Inspector 
                General may have related to air traffic 
                controller scheduling practices.
            (2) Report.--Not later than 120 days after the date 
        of enactment of this Act, the Inspector General shall 
        submit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate a report on the results of the assessment 
        conducted under this subsection.

SEC. 610. FAA FACILITY CONDITIONS.

    (a) Study.--The Comptroller General of the United States 
shall conduct a study of and review--
            (1) the conditions of a sampling of Federal 
        Aviation Administration facilities across the United 
        States, including offices, towers, centers, and 
        terminal radar air control;
            (2) reports from employees of the Administration 
        relating to respiratory ailments and other health 
        conditions resulting from exposure to mold, asbestos, 
        poor air quality, radiation, and facility-related 
        hazards in facilities of the Administration;
            (3) conditions of such facilities that could 
        interfere with such employees' ability to effectively 
        and safely perform their duties;
            (4) the ability of managers and supervisors of such 
        employees to promptly document and seek remediation for 
        unsafe facility conditions;
            (5) whether employees of the Administration who 
        report facility-related illnesses are treated 
        appropriately;
            (6) utilization of scientifically approved 
        remediation techniques to mitigate hazardous conditions 
        in accordance with applicable State and local 
        regulations and Occupational Safety and Health 
        Administration practices by the Administration; and
            (7) resources allocated to facility maintenance and 
        renovation by the Administration.
    (b) Facility Condition Indices.--The Comptroller General 
shall review the facility condition indices of the 
Administration for inclusion in the recommendations under 
subsection (c).
    (c) Recommendations.--Based on the results of the study and 
review of facility condition indices under subsection (a), the 
Comptroller General shall make such recommendations as the 
Comptroller General considers necessary--
            (1) to prioritize those facilities needing the most 
        immediate attention based on risks to employee health 
        and safety;
            (2) to ensure that the Administration is using 
        scientifically approved remediation techniques in all 
        facilities; and
            (3) to assist the Administration in making 
        programmatic changes so that aging facilities do not 
        deteriorate to unsafe levels.
    (d) Report.--Not later than 1 year after the date of 
enactment of this Act, the Comptroller General shall submit to 
the Administrator, 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 results of the study, including the 
recommendations under subsection (c).

SEC. 611. TECHNICAL CORRECTION.

    Section 40122(g)(3) is amended by adding at the end the 
following: ``Notwithstanding any other provision of law, 
retroactive to April 1, 1996, the Board shall have the same 
remedial authority over such employee appeals that it had as of 
March 31, 1996.''.

                     TITLE VII--AVIATION INSURANCE

SEC. 701. GENERAL AUTHORITY.

    Section 44302(f)(1) is amended by striking ``shall extend 
through'' and all that follows through ``the termination date'' 
and inserting ``shall extend through September 30, 2013, and 
may extend through December 31, 2013, the termination date''.

SEC. 702. EXTENSION OF AUTHORITY TO LIMIT THIRD-PARTY LIABILITY OF AIR 
                    CARRIERS ARISING OUT OF ACTS OF TERRORISM.

    The first sentence of section 44303(b) is amended by 
striking ``ending on'' and all that follows through ``the 
Secretary may certify'' and inserting ``ending on December 31, 
2013, the Secretary may certify''.

SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY.

    The second sentence of section 44304 is amended by striking 
``the carrier'' and inserting ``any insurance carrier''.

SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS.

    The second sentence of section 44308(c)(1) is amended by 
striking ``agent'' and inserting ``agent, or a claims adjuster 
who is independent of the underwriting agent,''.

                       TITLE VIII--MISCELLANEOUS

SEC. 801. DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST OF 
                    NATIONAL SECURITY.

    Section 40119(b) is amended by adding at the end the 
following:
    ``(4) Section 552a of title 5 shall not apply to 
disclosures that the Administrator may make from the systems of 
records of the Administration to any Federal law enforcement, 
intelligence, protective service, immigration, or national 
security official in order to assist the official receiving the 
information in the performance of official duties.''.

SEC. 802. FAA AUTHORITY TO CONDUCT CRIMINAL HISTORY RECORD CHECKS.

    (a) In General.--Chapter 401 is amended by adding at the 
end the following:

``Sec. 40130. FAA authority to conduct criminal history record checks

    ``(a) Criminal History Background Checks.--
            ``(1) Access to information.--The Administrator of 
        the Federal Aviation Administration, for certification 
        purposes of the Administration only, is authorized--
                    ``(A) to conduct, in accordance with the 
                established request process, a criminal history 
                background check of an airman in the criminal 
                repositories of the Federal Bureau of 
                Investigation and States by submitting positive 
                identification of the airman to a fingerprint-
                based repository in compliance with section 217 
                of the National Crime Prevention and Privacy 
                Compact Act of 1998 (42 U.S.C. 14616); and
                    ``(B) to receive relevant criminal history 
                record information regarding the airman 
                checked.
            ``(2) Release of information.--In accessing a 
        repository referred to in paragraph (1), the 
        Administrator shall be subject to the conditions and 
        procedures established by the Department of Justice or 
        the State, as appropriate, for other governmental 
        agencies conducting background checks for noncriminal 
        justice purposes.
            ``(3) Limitation.--The Administrator may not use 
        the authority under paragraph (1) to conduct criminal 
        investigations.
            ``(4) Reimbursement.--The Administrator may collect 
        reimbursement to process the fingerprint-based checks 
        under this subsection, to be used for expenses 
        incurred, including Federal Bureau of Investigation 
        fees, in providing these services.
    ``(b) Designated Employees.--The Administrator shall 
designate, by order, employees of the Administration who may 
carry out the authority described in subsection (a).''.
    (b) Clerical Amendment.--The analysis for chapter 401 is 
amended by adding at the end the following:

``40130. FAA authority to conduct criminal history record checks.''.

SEC. 803. CIVIL PENALTIES TECHNICAL AMENDMENTS.

    Section 46301 of title 49, United States Code, is amended--
            (1) in subsection (a)(1)(A) by inserting ``chapter 
        451,'' before ``section 47107(b)'';
            (2) in subsection (a)(5)(A)(i)--
                    (A) by striking ``or chapter 449'' and 
                inserting ``chapter 449''; and
                    (B) by inserting after ``44909)'' the 
                following: ``, or chapter 451'';
            (3) in subsection (d)(2)--
                    (A) in the first sentence--
                            (i) by striking ``44723) or'' and 
                        inserting the following: ``44723), 
                        chapter 451,'';
                            (ii) by striking ``46302'' and 
                        inserting ``section 46302''; and
                            (iii) by striking ``46318, or 
                        47107(b)'' and inserting ``section 
                        46318, section 46319, or section 
                        47107(b)''; and
                    (B) in the second sentence--
                            (i) by striking ``46302'' and 
                        inserting ``section 46302'';
                            (ii) by striking ``46303,'' and 
                        inserting ``or section 46303 of this 
                        title''; and
                            (iii) by striking ``such chapter 
                        449'' and inserting ``any of those 
                        provisions''; and
            (4) in subsection (f)(1)(A)(i)--
                    (A) by striking ``or chapter 449'' and 
                inserting ``chapter 449''; and
                    (B) by inserting after ``44909)'' the 
                following: ``, or chapter 451''.

SEC. 804. CONSOLIDATION AND REALIGNMENT OF FAA SERVICES AND FACILITIES.

    (a) National Facilities Realignment and Consolidation 
Report.--
            (1) In general.--The Administrator of the Federal 
        Aviation Administration shall develop a report, to be 
        known as the National Facilities Realignment and 
        Consolidation Report, in accordance with the 
        requirements of this subsection.
            (2) Purpose.--The purpose of the report shall be--
                    (A) to support the transition to the Next 
                Generation Air Transportation System; and
                    (B) to reduce capital, operating, 
                maintenance, and administrative costs of the 
                FAA where such cost reductions can be 
                implemented without adversely affecting safety.
            (3) Contents.--The report shall include--
                    (A) recommendations of the Administrator on 
                realignment and consolidation of services and 
                facilities (including regional offices) of the 
                FAA; and
                    (B) for each of the recommendations, a 
                description of--
                            (i) the Administrator's 
                        justification;
                            (ii) the projected costs and 
                        savings; and
                            (iii) the proposed timing for 
                        implementation.
            (4) Input.--The report shall be developed by the 
        Administrator (or the Administrator's designee)--
                    (A) in coordination with the Chief NextGen 
                Officer and the Chief Operating Officer of the 
                Air Traffic Organization of the FAA; and
                    (B) with the participation of--
                            (i) representatives of labor 
                        organizations representing operations 
                        and maintenance employees of the air 
                        traffic control system; and
                            (ii) industry stakeholders.
            (5) Submission to congress.--Not later than 120 
        days after the date of enactment of this Act, the 
        Administrator shall submit the report to the Committee 
        on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate.
            (6) Public notice and comment.--The Administrator 
        shall publish the report in the Federal Register and 
        allow 45 days for the submission of public comments.
    (b) Report to Congress Containing Recommendations of 
Administrator.--Not later than 60 days after the last day of 
the period for public comment under subsection (a)(6), the 
Administrator shall submit to the committees specified in 
subsection (a)(5)--
            (1) a report containing the recommendations of the 
        Administrator on realignment and consolidation of 
        services and facilities (including regional offices) of 
        the FAA; and
            (2) copies of any public comments received by the 
        Administrator under subsection (a)(6).
    (c) Realignment and Consolidation of FAA Services and 
Facilities.--Except as provided in subsection (d), the 
Administrator shall realign and consolidate the services and 
facilities of the FAA in accordance with the recommendations 
included in the report submitted under subsection (b).
    (d) Congressional Disapproval.--
            (1) In general.--The Administrator may not carry 
        out a recommendation for realignment or consolidation 
        of services or facilities of the FAA that is included 
        in the report submitted under subsection (b) if a joint 
        resolution of disapproval is enacted disapproving such 
        recommendation before the earlier of--
                    (A) the last day of the 30-day period 
                beginning on the date of submission of the 
                report; or
                    (B) the adjournment of Congress sine die 
                for the session during which the report is 
                transmitted.
            (2) Computation of 30-day period.--For purposes of 
        paragraph (1)(A), the days on which either house of 
        Congress is not in session because of an adjournment of 
        more than 3 days to a day certain shall be excluded in 
        computation of the 30-day period.
    (e) Definitions.--In this section, the following 
definitions apply:
            (1) FAA.--The term ``FAA'' means the Federal 
        Aviation Administration.
            (2) Realignment; consolidation.--
                    (A) In general.--The terms ``realignment'' 
                and ``consolidation'' include any action that--
                            (i) relocates functions, services, 
                        or personnel positions;
                            (ii) discontinues or severs 
                        existing facility functions or 
                        services; or
                            (iii) combines the results 
                        described in clauses (i) and (ii).
                    (B) Exclusion.--The terms do not include a 
                reduction in personnel resulting from workload 
                adjustments.

SEC. 805. LIMITING ACCESS TO FLIGHT DECKS OF ALL-CARGO AIRCRAFT.

    (a) Study.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration, in consultation with appropriate air 
carriers, aircraft manufacturers, and air carrier labor 
representatives, shall conduct a study to assess the 
feasibility of developing a physical means, or a combination of 
physical and procedural means, to prohibit individuals other 
than authorized flight crewmembers from accessing the flight 
deck of an all-cargo aircraft.
    (b) Report.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of the 
study.

SEC. 806. CONSOLIDATION OR ELIMINATION OF OBSOLETE, REDUNDANT, OR 
                    OTHERWISE UNNECESSARY REPORTS; USE OF ELECTRONIC 
                    MEDIA FORMAT.

    (a) Consolidation or Elimination of Reports.--Not later 
than 2 years after the date of enactment of this Act, and every 
2 years thereafter, the Administrator of the Federal Aviation 
Administration 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 containing--
            (1) a list of obsolete, redundant, or otherwise 
        unnecessary reports the Administration is required by 
        law to submit to Congress or publish that the 
        Administrator recommends eliminating or consolidating 
        with other reports; and
            (2) an estimate of the cost savings that would 
        result from the elimination or consolidation of those 
        reports.
    (b) Use of Electronic Media for Reports.--
            (1) In general.--Notwithstanding any other 
        provision of law, the Administration--
                    (A) may not publish any report required or 
                authorized by law in a printed format; and
                    (B) shall publish any such report by 
                posting it on the Administration's Internet Web 
                site in an easily accessible and downloadable 
                electronic format.
            (2) Exception.--Paragraph (1) does not apply to any 
        report with respect to which the Administrator 
        determines that--
                    (A) its publication in a printed format is 
                essential to the mission of the Administration; 
                or
                    (B) its publication in accordance with the 
                requirements of paragraph (1) would disclose 
                matter--
                            (i) described in section 552(b) of 
                        title 5, United States Code; or
                            (ii) the disclosure of which would 
                        have an adverse impact on aviation 
                        safety or security, as determined by 
                        the Administrator.

SEC. 807. PROHIBITION ON USE OF CERTAIN FUNDS.

    The Secretary of Transportation may not use any funds made 
available pursuant to this Act (including any amendment made by 
this Act) to name, rename, designate, or redesignate any 
project or program authorized by this Act (including any 
amendment made by this Act) for an individual then serving in 
Congress as a Member, Delegate, Resident Commissioner, or 
Senator.

SEC. 808. STUDY ON AVIATION FUEL PRICES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller General of the United 
States shall conduct a study and report to Congress on the 
impact of increases in aviation fuel prices on the Airport and 
Airway Trust Fund and the aviation industry in general.
    (b) Contents.--The study shall include an assessment of the 
impact of increases in aviation fuel prices on--
            (1) general aviation;
            (2) commercial passenger aviation;
            (3) piston aircraft purchase and use;
            (4) the aviation services industry, including 
        repair and maintenance services;
            (5) aviation manufacturing;
            (6) aviation exports; and
            (7) the use of small airport installations.
    (c) Assumptions About Aviation Fuel Prices.--In conducting 
the study required by subsection (a), the Comptroller General 
shall use the average aviation fuel price for fiscal year 2010 
as a baseline and measure the impact of increases in aviation 
fuel prices that range from 5 percent to 200 percent over the 
2010 baseline.

SEC. 809. WIND TURBINE LIGHTING.

    (a) Study.--The Administrator of the Federal Aviation 
Administration shall conduct a study on wind turbine lighting 
systems.
    (b) Contents.--In conducting the study, the Administrator 
shall examine the following:
            (1) The aviation safety issues associated with 
        alternative lighting strategies, technologies, and 
        regulations.
            (2) The feasibility of implementing alternative 
        lighting strategies or technologies to improve aviation 
        safety.
            (3) Any other issue relating to wind turbine 
        lighting.
    (c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to 
Congress a report on the results of the study, including 
information and recommendations concerning the issues examined 
under subsection (b).

SEC. 810. AIR-RAIL CODE SHARING STUDY.

    (a) Code Share Study.--Not later than 180 days after the 
date of enactment of this Act, the Comptroller General of the 
United States shall initiate a study regarding--
            (1) existing airline and intercity passenger rail 
        code sharing arrangements; and
            (2) the feasibility, costs to taxpayers and other 
        parties, and benefits of increasing the intermodal 
        connectivity of airline and intercity passenger rail 
        facilities and systems to improve passenger travel.
    (b) Considerations.--In conducting the study, the 
Comptroller General shall consider--
            (1) the potential costs to taxpayers and other 
        parties and benefits of the implementation of more 
        integrated scheduling between airlines and Amtrak or 
        other intercity passenger rail carriers achieved 
        through code sharing arrangements;
            (2) airport and intercity passenger rail operations 
        that can improve connectivity between airports and 
        intercity passenger rail facilities and stations;
            (3) the experience of other countries with respect 
        to airport and intercity passenger rail connectivity; 
        and
            (4) such other issues the Comptroller General 
        considers appropriate.
    (c) Report.--Not later than 1 year after initiating the 
study required by subsection (a), the Comptroller General 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 the results of the study, including 
any conclusions of the Comptroller General resulting from the 
study.

SEC. 811. D.C. METROPOLITAN AREA SPECIAL FLIGHT RULES AREA.

    (a) Submission of Plan to Congress.--Not later than 180 
days after the date of enactment of this Act, the Administrator 
of the Federal Aviation Administration, in consultation with 
the Secretary of Homeland Security and the Secretary of 
Defense, shall submit to the Committee on Transportation and 
Infrastructure and the Committee on Homeland Security of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a plan for the D.C. 
Metropolitan Area Special Flight Rules Area.
    (b) Contents of Plan.--The plan shall outline specific 
changes to the D.C. Metropolitan Area Special Flight Rules Area 
that will decrease operational impacts and improve general 
aviation access to airports in the National Capital Region that 
are currently impacted by the zone.

SEC. 812. FAA REVIEW AND REFORM.

    (a) Agency Review.--Not later than 60 days after the date 
of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall undertake a thorough review of 
each program, office, and organization within the 
Administration, including the Air Traffic Organization, to 
identify--
            (1) duplicative positions, programs, roles, or 
        offices;
            (2) wasteful practices;
            (3) redundant, obsolete, or unnecessary functions;
            (4) inefficient processes; and
            (5) ineffectual or outdated policies.
    (b) Actions To Streamline and Reform FAA.--Not later than 
120 days after the date of enactment of this Act, the 
Administrator shall undertake such actions as may be necessary 
to address the Administrator's findings under subsection (a), 
including--
            (1) consolidating, phasing-out, or eliminating 
        duplicative positions, programs, roles, or offices;
            (2) eliminating or streamlining wasteful practices;
            (3) eliminating or phasing-out redundant, obsolete, 
        or unnecessary functions;
            (4) reforming and streamlining inefficient 
        processes so that the activities of the Administration 
        are completed in an expedited and efficient manner; and
            (5) reforming or eliminating ineffectual or 
        outdated policies.
    (c) Authority.--Notwithstanding any other provision of law, 
the Administrator shall have the authority to undertake the 
actions required under subsection (b).
    (d) Report to Congress.--Not later than 150 days after the 
date of enactment of this Act, the Administrator shall submit 
to Congress a report on the actions taken by the Administrator 
under this section, including any recommendations for 
legislative or administrative actions.

SEC. 813. USE OF MINERAL REVENUE AT CERTAIN AIRPORTS.

    (a) In General.--Notwithstanding any other provision of 
law, the Administrator of the Federal Aviation Administration 
may declare certain revenue derived from or generated by 
mineral extraction, production, lease, or other means at a 
general aviation airport to be revenue greater than the amount 
needed to carry out the 5-year projected maintenance needs of 
the airport in order to comply with the applicable design and 
safety standards of the Administration.
    (b) Use of Revenue.--An airport sponsor that is in 
compliance with the conditions under subsection (c) may 
allocate revenue identified by the Administrator under 
subsection (a) for Federal, State, or local transportation 
infrastructure projects carried out by the airport sponsor or 
by a governing body within the geographical limits of the 
airport sponsor's jurisdiction.
    (c) Conditions.--An airport sponsor may not allocate 
revenue identified by the Administrator under subsection (a) 
unless the airport sponsor--
            (1) enters into a written agreement with the 
        Administrator that sets forth a 5-year capital 
        improvement program for the airport, which--
                    (A) includes the projected costs for the 
                operation, maintenance, and capacity needs of 
                the airport in order to comply with applicable 
                design and safety standards of the 
                Administration; and
                    (B) appropriately adjusts such costs to 
                account for inflation;
            (2) agrees in writing--
                    (A) to waive all rights to receive 
                entitlement funds or discretionary funds to be 
                used at the airport under section 47114 or 
                47115 of title 49, United States Code, during 
                the 5-year period of the capital improvement 
                plan described in paragraph (1);
                    (B) to perpetually comply with sections 
                47107(b) and 47133 of such title, unless 
                granted specific exceptions by the 
                Administrator in accordance with this section; 
                and
                    (C) to operate the airport as a public-use 
                airport, unless the Administrator specifically 
                grants a request to allow the airport to close; 
                and
            (3) complies with all grant assurance obligations 
        in effect as of the date of the enactment of this Act 
        during the 20-year period beginning on the date of 
        enactment of this Act.
    (d) Completion of Determination.--Not later than 90 days 
after receiving an airport sponsor's application and requisite 
supporting documentation to declare that certain mineral 
revenue is not needed to carry out the 5-year capital 
improvement program at such airport, the Administrator shall 
determine whether the airport sponsor's request should be 
granted. The Administrator may not unreasonably deny an 
application under this subsection.
    (e) Rulemaking.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall promulgate 
regulations to carry out this section.
    (f) General Aviation Airport Defined.--In this section, the 
term ``general aviation airport'' has the meaning given that 
term in section 47102 of title 49, United States Code, as 
amended by this Act.

SEC. 814. CONTRACTING.

    When drafting contract proposals for training facilities 
under the general contracting authority of the Federal Aviation 
Administration, the Administrator of the Federal Aviation 
Administration shall ensure--
            (1) the proposal is drafted so that all parties can 
        fairly compete; and
            (2) the proposal takes into consideration the most 
        cost-effective location, accessibility, and services 
        options.

SEC. 815. FLOOD PLANNING.

    (a) Study.--The Administrator of the Federal Aviation 
Administration, in consultation with the Administrator of the 
Federal Emergency Management Agency, shall conduct a review and 
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 the state of preparedness and 
response capability for airports located in flood plains to 
respond to and seek assistance in rebuilding after catastrophic 
flooding.
    (b) Eligibility of Demolition and Rebuilding of 
Properties.--Section 1366(e) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4104c(e)) is amended by adding at the 
end the following:
            ``(6) Eligibility of demolition and rebuilding of 
        properties.--The Director shall consider as an eligible 
        activity the demolition and rebuilding of properties to 
        at least base flood levels or higher, if required by 
        the Director or if required by any State or local 
        ordinance, and in accordance with project 
        implementation criteria established by the Director.''.

SEC. 816. HISTORICAL AIRCRAFT DOCUMENTS.

    (a) Preservation of Documents.--
            (1) In general.--The Administrator of the Federal 
        Aviation Administration shall take such actions as the 
        Administrator determines necessary to preserve original 
        aircraft type certificate engineering and technical 
        data in the possession of the Federal Aviation 
        Administration related to--
                    (A) approved aircraft type certificate 
                numbers ATC 1 through ATC 713; and
                    (B) Group-2 approved aircraft type 
                certificate numbers 2-1 through 2-544.
            (2) Revision of order.--Not later than 3 years 
        after the date of enactment of this Act, the 
        Administrator shall revise FAA Order 1350.15C, Item 
        Number 8110. Such revision shall prohibit the 
        destruction of the historical aircraft documents 
        identified in paragraph (1).
            (3) Consultation.--The Administrator may carry out 
        paragraph (1) in consultation with the Archivist of the 
        United States and the Administrator of General 
        Services.
    (b) Availability of Documents.--
            (1) Freedom of information act requests.--The 
        Administrator shall make the documents to be preserved 
        under subsection (a)(1) available to a person--
                    (A) upon receipt of a request made by the 
                person pursuant to section 552 of title 5, 
                United States Code; and
                    (B) subject to a prohibition on use of the 
                documents for commercial purposes.
            (2) Trade secrets, commercial, and financial 
        information.--Section 552(b)(4) of such title shall not 
        apply to requests for documents to be made available 
        pursuant to paragraph (1).
    (c) Holder of Type Certificate.--
            (1) Rights of holder.--Nothing in this section 
        shall affect the rights of a holder or owner of a type 
        certificate identified in subsection (a)(1), nor 
        require the holder or owner to provide, surrender, or 
        preserve any original or duplicate engineering or 
        technical data to or for the Federal Aviation 
        Administration, a person, or the public.
            (2) Liability.--There shall be no liability on the 
        part of, and no cause of action of any nature shall 
        arise against, a holder of a type certificate, its 
        authorized representative, its agents, or its 
        employees, or any firm, person, corporation, or insurer 
        related to the type certificate data and documents 
        identified in subsection (a)(1).
            (3) Airworthiness.--Notwithstanding any other 
        provision of law, the holder of a type certificate 
        identified in subsection (a)(1) shall only be 
        responsible for Federal Aviation Administration 
        regulation requirements related to type certificate 
        data and documents identified in subsection (a)(1) for 
        aircraft having a standard airworthiness certificate 
        issued prior to the date the documents are released to 
        a person by the Federal Aviation Administration under 
        subsection (b)(1).

SEC. 817. RELEASE FROM RESTRICTIONS.

    (a) In General.--Subject to subsection (b), the Secretary 
of Transportation is authorized to grant to an airport, city, 
or county a release from any of the terms, conditions, 
reservations, or restrictions contained in a deed under which 
the United States conveyed to the airport, city, or county an 
interest in real property for airport purposes pursuant to 
section 16 of the Federal Airport Act (60 Stat. 179) or section 
23 of the Airport and Airway Development Act of 1970 (84 Stat. 
232).
    (b) Condition.--Any release granted by the Secretary 
pursuant to subsection (a) shall be subject to the following 
conditions:
            (1) The applicable airport, city, or county shall 
        agree that in conveying any interest in the real 
        property which the United States conveyed to the 
        airport, city, or county, the airport, city, or county 
        will receive consideration for such interest that is 
        equal to its fair market value.
            (2) Any consideration received by the airport, 
        city, or county under paragraph (1) shall be used 
        exclusively for the development, improvement, 
        operation, or maintenance of a public airport by the 
        airport, city, or county.
            (3) Any other conditions required by the Secretary.

SEC. 818. SENSE OF CONGRESS.

    It is the sense of Congress that Los Angeles World 
Airports, the operator of Los Angeles International Airport 
(LAX)--
            (1) should consult on a regular basis with 
        representatives of the community surrounding the 
        airport regarding--
                    (A) the ongoing operations of LAX; and
                    (B) plans to expand, modify, or realign LAX 
                facilities; and
            (2) should include in such consultations any 
        organization, the membership of which includes at least 
        100 individuals who reside within 10 miles of the 
        airport, that notifies Los Angeles World Airports of 
        its desire to be included in such consultations.

SEC. 819. HUMAN INTERVENTION MOTIVATION STUDY.

    Not later than 180 days after the date of enactment of this 
Act, the Administrator of the Federal Aviation Administration 
shall develop a Human Intervention Motivation Study program for 
cabin crew members employed by commercial air carriers in the 
United States.

SEC. 820. STUDY OF AERONAUTICAL MOBILE TELEMETRY.

    Not later than 180 days after the date of enactment of this 
Act, the Administrator of the Federal Aviation Administration, 
in consultation with other Federal agencies, shall submit to 
the Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Science, Space, and Technology and 
the Committee on Energy and Commerce of the House of 
Representatives a report that identifies--
            (1) the current and anticipated, with respect to 
        the next decade, need by civil aviation, including 
        equipment manufacturers, for aeronautical mobile 
        telemetry services; and
            (2) the potential impact to the aerospace industry 
        of the introduction of a new radio service that 
        operates in the same spectrum allocated to the 
        aeronautical mobile telemetry service.

SEC. 821. CLARIFICATION OF REQUIREMENTS FOR VOLUNTEER PILOTS OPERATING 
                    CHARITABLE MEDICAL FLIGHTS.

    (a) Reimbursement of Fuel Costs.--Notwithstanding any other 
law or regulation, in administering section 61.113(c) of title 
14, Code of Federal Regulations (or any successor regulation), 
the Administrator of the Federal Aviation Administration shall 
allow an aircraft owner or operator to accept reimbursement 
from a volunteer pilot organization for the fuel costs 
associated with a flight operation to provide transportation 
for an individual or organ for medical purposes (and for other 
associated individuals), if the aircraft owner or operator 
has--
            (1) volunteered to provide such transportation; and
            (2) notified any individual that will be on the 
        flight, at the time of inquiry about the flight, that 
        the flight operation is for charitable purposes and is 
        not subject to the same requirements as a commercial 
        flight.
    (b) Conditions to Ensure Safety.--The Administrator may 
impose minimum standards with respect to training and flight 
hours for single-engine, multi-engine, and turbine-engine 
operations conducted by an aircraft owner or operator that is 
being reimbursed for fuel costs by a volunteer pilot 
organization, including mandating that the pilot in command of 
such aircraft hold an instrument rating and be current and 
qualified for the aircraft being flown to ensure the safety of 
flight operations described in subsection (a).
    (c) Volunteer Pilot Organization.--In this section, the 
term ``volunteer pilot organization'' means an organization 
that--
            (1) is described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and is exempt from 
        taxation under section 501(a) of such Code; and
            (2) is organized for the primary purpose of 
        providing, arranging, or otherwise fostering charitable 
        medical transportation.

SEC. 822. PILOT PROGRAM FOR REDEVELOPMENT OF AIRPORT PROPERTIES.

    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall establish a pilot program under 
which operators of up to 4 public-use airports may receive 
grants for activities related to the redevelopment of airport 
properties in accordance with the requirements of this section.
    (b) Grants.--Under the pilot program, the Administrator may 
make a grant in a fiscal year, from funds made available for 
grants under section 47117(e)(1)(A) of title 49, United States 
Code, to an airport operator for a project--
            (1) to support joint planning, engineering, design, 
        and environmental permitting of projects, including the 
        assembly and redevelopment of property purchased with 
        noise mitigation funds made available under section 
        48103 of such title or passenger facility revenue 
        collected under section 40117 of such title; and
            (2) to encourage airport-compatible land uses and 
        generate economic benefits to the local airport 
        authority and adjacent community.
    (c) Eligibility.--An airport operator shall be eligible to 
participate in the pilot program if--
            (1) the operator has received approval for a noise 
        compatibility program under section 47504 of such 
        title; and
            (2) the operator demonstrates, as determined by the 
        Administrator--
                    (A) a readiness to implement cooperative 
                land use management and redevelopment plans 
                with neighboring local jurisdictions; and
                    (B) the probability of a clear economic 
                benefit to neighboring local jurisdictions and 
                financial return to the airport through the 
                implementation of those plans.
    (d) Distribution.--The Administrator shall seek to award 
grants under the pilot program to airport operators 
representing different geographic areas of the United States.
    (e) Partnership With Neighboring Local Jurisdictions.--An 
airport operator shall use grant funds made available under the 
pilot program only in partnership with neighboring local 
jurisdictions.
    (f) Grant Requirements.--The Administrator may not make a 
grant to an airport operator under the pilot program unless the 
grant is--
            (1) made to enable the airport operator and local 
        jurisdictions undertaking community redevelopment 
        efforts to expedite those efforts;
            (2) subject to a requirement that the local 
        jurisdiction governing the property interests subject 
        to the redevelopment efforts has adopted and will 
        continue in effect zoning regulations that permit 
        airport-compatible redevelopment; and
            (3) subject to a requirement that, in determining 
        the part of the proceeds from disposing of land that is 
        subject to repayment and reinvestment requirements 
        under section 47107(c)(2)(A) of such title, the total 
        amount of a grant issued under the pilot program that 
        is attributable to the redevelopment of such land shall 
        be added to other amounts that must be repaid or 
        reinvested under that section upon disposal of such 
        land by the airport operator.
    (g) Exceptions to Repayment and Reinvestment 
Requirements.--Amounts paid to the Secretary of Transportation 
under subsection (f)(3)--
            (1) shall be available to the Secretary for, giving 
        preference to the actions in descending order--
                    (A) reinvestment in an approved noise 
                compatibility project at the applicable 
                airport;
                    (B) reinvestment in another approved 
                project at the airport that is eligible for 
                funding under section 47117(e) of such title;
                    (C) reinvestment in an approved airport 
                development project at the airport that is 
                eligible for funding under section 47114, 
                47115, or 47117 of such title;
                    (D) transfer to an operator of another 
                public airport to be reinvested in an approved 
                noise compatibility project at such airport; 
                and
                    (E) deposit in the Airport and Airway Trust 
                Fund established under section 9502 of the 
                Internal Revenue Code of 1986 (26 U.S.C. 9502);
            (2) shall be available in addition to amounts 
        authorized under section 48103 of such title;
            (3) shall not be subject to any limitation on grant 
        obligations for any fiscal year; and
            (4) shall remain available until expended.
    (h) Federal Share.--
            (1) In general.--Notwithstanding any other 
        provision of law, the Federal share of the allowable 
        costs of a project carried out under the pilot program 
        shall be 80 percent.
            (2) Allowable costs.--In determining the allowable 
        costs, the Administrator shall deduct from the total 
        costs of the activities described in subsection (b) 
        that portion of the costs which is equal to that 
        portion of the total property to be redeveloped under 
        this section that is not owned or to be acquired by the 
        airport operator pursuant to the noise compatibility 
        program or that is not owned by the affected 
        neighboring local jurisdictions or other public 
        entities.
    (i) Maximum Amount.--Not more than $5,000,000 of the funds 
made available for grants under section 47117(e)(1)(A) of such 
title may be expended under the pilot program for any single 
public-use airport.
    (j) Use of Passenger Revenue.--An airport operator 
participating in the pilot program may use passenger facility 
revenue collected under section 40117 of such title to pay any 
project cost described in subsection (b) that is not financed 
by a grant under the pilot program.
    (k) Sunset.--This section shall not be in effect after 
September 30, 2015.

SEC. 823. REPORT ON NEW YORK CITY AND NEWARK AIR TRAFFIC CONTROL 
                    FACILITIES.

    Under previous agreements, the Federal Aviation 
Administration negotiated staffing levels at the air traffic 
control facilities in the Newark and New York City areas. Not 
later than 90 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration 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 the Federal Aviation 
Administration's staffing and scheduling plans for air traffic 
control facilities in the New York City and Newark Region for 
the 1-year period beginning on such date of enactment.

SEC. 824. CYLINDERS OF COMPRESSED OXYGEN OR OTHER OXIDIZING GASES.

    (a) In General.--Subject to subsections (b) and (c), 
entities transporting, in the State of Alaska, cylinders of 
compressed oxygen or other oxidizing gases aboard aircraft 
shall be exempt from compliance with the regulations described 
in subsection (d), to the extent that the regulations require 
that oxidizing gases transported aboard aircraft be enclosed in 
outer packaging capable of passing the flame penetration 
resistance test and the thermal resistance test, without regard 
to the end use of the cylinders.
    (b) Applicability of Exemption.--The exemption provided 
under subsection (a) shall apply only if--
            (1) transportation of the cylinders by a ground-
        based or water-based mode of transportation is 
        unavailable and transportation by aircraft is the only 
        practical means for transporting the cylinders to their 
        destination;
            (2) each cylinder is fully covered with a fire- or 
        flame-resistant blanket that is secured in place; and
            (3) the operator of the aircraft complies with the 
        applicable notification procedures under section 175.33 
        of title 49, Code of Federal Regulations.
    (c) Aircraft Restriction.--The exemption provided under 
subsection (a) shall apply only to the following types of 
aircraft:
            (1) Cargo-only aircraft transporting the cylinders 
        to a delivery destination that receives cargo-only 
        service at least once a week.
            (2) Passenger and cargo-only aircraft transporting 
        the cylinders to a delivery destination that does not 
        receive cargo-only service at least once a week.
    (d) Description of Regulatory Requirements.--The 
regulations described in this subsection are the regulations of 
the Pipeline and Hazardous Materials Safety Administration 
contained in sections 173.302(f)(3), 173.302(f)(4), 
173.302(f)(5), 173.304(f)(3), 173.304(f)(4), and 173.304(f)(5) 
of title 49, Code of Federal Regulations.

SEC. 825. ORPHAN AVIATION EARMARKS.

    (a) Earmark Defined.--In this section, the term ``earmark'' 
means a statutory provision or report language included 
primarily at the request of a Senator or a Member, Delegate, or 
Resident Commissioner of the House of Representatives 
providing, authorizing, or recommending a specific amount of 
discretionary budget authority, credit authority, or other 
spending authority for a contract, loan, loan guarantee, grant, 
or other expenditure with or to an entity or a specific State, 
locality, or Congressional district, other than through a 
statutory or administrative formula-driven or competitive award 
process.
    (b) Rescission.--If any earmark relating to the Federal 
Aviation Administration has more than 90 percent of applicable 
appropriated amounts remaining available for obligation at the 
end of the 9th fiscal year beginning after the fiscal year in 
which those amounts were appropriated, the unobligated portion 
of those amounts is rescinded effective at the end of that 9th 
fiscal year, except that the Administrator of the Federal 
Aviation Administration may delay any such rescission if the 
Administrator determines that an obligation with respect to 
those amounts is likely to occur during the 12-month period 
beginning on the last day of that 9th fiscal year.
    (c) Identification and Report.--
            (1) Agency identification.--At the end of each 
        fiscal year, the Administrator shall identify and 
        report to the Director of the Office of Management and 
        Budget every earmark related to the Administration and 
        with respect to which there is an unobligated balance 
        of appropriated amounts.
            (2) Annual report.--Not later than 1 year after the 
        date of enactment of this Act, and annually thereafter, 
        the Director shall submit to Congress and make 
        available to the public on the Internet Web site of the 
        Office a report that includes--
                    (A) a listing of each earmark related to 
                the Administration and with respect to which 
                there is an unobligated balance of appropriated 
                amounts, which shall include the amount of the 
                original earmark, the amount of the unobligated 
                balance related to that earmark, and the date 
                on which the funding expires, if applicable;
                    (B) the number of rescissions under 
                subsection (b) and the savings resulting from 
                those rescissions for the previous fiscal year; 
                and
                    (C) a listing of earmarks related to the 
                Administration with amounts scheduled for 
                rescission at the end of the current fiscal 
                year.

SEC. 826. PRIVACY PROTECTIONS FOR AIR PASSENGER SCREENING WITH ADVANCED 
                    IMAGING TECHNOLOGY.

    Section 44901 is amended by adding at the end the 
following:
    ``(l) Limitations on Use of Advanced Imaging Technology for 
Screening Passengers.--
            ``(1) Definitions.--In this subsection, the 
        following definitions apply:
                    ``(A) Advanced imaging technology.--The 
                term `advanced imaging technology'--
                            ``(i) means a device used in the 
                        screening of passengers that creates a 
                        visual image of an individual showing 
                        the surface of the skin and revealing 
                        other objects on the body; and
                            ``(ii) may include devices using 
                        backscatter x-rays or millimeter waves 
                        and devices referred to as `whole-body 
                        imaging technology' or `body scanning 
                        machines'.
                    ``(B) Appropriate congressional 
                committees.--The term `appropriate 
                congressional committees' means--
                            ``(i) the Committee on Commerce, 
                        Science, and Transportation and the 
                        Committee on Homeland Security and 
                        Governmental Affairs of the Senate; and
                            ``(ii) the Committee on Homeland 
                        Security of the House of 
                        Representatives.
                    ``(C) Automatic target recognition 
                software.--The term `automatic target 
                recognition software' means software installed 
                on an advanced imaging technology that produces 
                a generic image of the individual being 
                screened that is the same as the images 
                produced for all other screened individuals.
            ``(2) Use of advanced imaging technology.--
        Beginning June 1, 2012, the Assistant Secretary of 
        Homeland Security (Transportation Security 
        Administration) shall ensure that any advanced imaging 
        technology used for the screening of passengers under 
        this section--
                    ``(A) is equipped with and employs 
                automatic target recognition software; and
                    ``(B) complies with such other requirements 
                as the Assistant Secretary determines necessary 
                to address privacy considerations.
            ``(3) Extension.--
                    ``(A) In general.--The Assistant Secretary 
                may extend the deadline specified in paragraph 
                (2), if the Assistant Secretary determines 
                that--
                            ``(i) an advanced imaging 
                        technology equipped with automatic 
                        target recognition software is not 
                        substantially as effective at screening 
                        passengers as an advanced imaging 
                        technology without such software; or
                            ``(ii) additional testing of such 
                        software is necessary.
                    ``(B) Duration of extensions.--The 
                Assistant Secretary may issue one or more 
                extensions under subparagraph (A). The duration 
                of each extension may not exceed one year.
            ``(4) Reports.--
                    ``(A) In general.--Not later than 60 days 
                after the deadline specified in paragraph (2), 
                and not later than 60 days after the date on 
                which the Assistant Secretary issues any 
                extension under paragraph (3), the Assistant 
                Secretary shall submit to the appropriate 
                congressional committees a report on the 
                implementation of this subsection.
                    ``(B) Elements.--A report submitted under 
                subparagraph (A) shall include the following:
                            ``(i) A description of all matters 
                        the Assistant Secretary considers 
                        relevant to the implementation of the 
                        requirements of this subsection.
                            ``(ii) The status of compliance by 
                        the Transportation Security 
                        Administration with such requirements.
                            ``(iii) If the Administration is 
                        not in full compliance with such 
                        requirements--
                                    ``(I) the reasons for the 
                                noncompliance; and
                                    ``(II) a timeline depicting 
                                when the Assistant Secretary 
                                expects the Administration to 
                                achieve full compliance.
                    ``(C) Security classification.--To the 
                greatest extent practicable, a report prepared 
                under subparagraph (A) shall be submitted in an 
                unclassified format. If necessary, the report 
                may include a classified annex.''.

SEC. 827. COMMERCIAL SPACE LAUNCH LICENSE REQUIREMENTS.

    Section 50905(c)(3) of title 51, United States Code, is 
amended by striking ``Beginning 8 years after the date of 
enactment of the Commercial Space Launch Amendments Act of 
2004,'' and inserting ``Beginning on October 1, 2015,''.

SEC. 828. AIR TRANSPORTATION OF LITHIUM CELLS AND BATTERIES.

    (a) In General.--The Secretary of Transportation, including 
a designee of the Secretary, may not issue or enforce any 
regulation or other requirement regarding the transportation by 
aircraft of lithium metal cells or batteries or lithium ion 
cells or batteries, whether transported separately or packed 
with or contained in equipment, if the requirement is more 
stringent than the requirements of the ICAO Technical 
Instructions.
    (b) Exceptions.--
            (1) Passenger carrying aircraft.--Notwithstanding 
        subsection (a), the Secretary may enforce the 
        prohibition on transporting primary (non-rechargeable) 
        lithium batteries and cells aboard passenger carrying 
        aircraft set forth in special provision A100 under 
        section 172.102(c)(2) of title 49, Code of Federal 
        Regulations (as in effect on the date of enactment of 
        this Act).
            (2) Credible reports.--Notwithstanding subsection 
        (a), if the Secretary obtains a credible report with 
        respect to a safety incident from a national or 
        international governmental regulatory or investigating 
        body that demonstrates that the presence of lithium 
        metal cells or batteries or lithium ion cells or 
        batteries on an aircraft, whether transported 
        separately or packed with or contained in equipment, in 
        accordance with the requirements of the ICAO Technical 
        Instructions, has substantially contributed to the 
        initiation or propagation of an onboard fire, the 
        Secretary--
                    (A) may issue and enforce an emergency 
                regulation, more stringent than the 
                requirements of the ICAO Technical 
                Instructions, that governs the transportation 
                by aircraft of such cells or batteries, if that 
                regulation--
                            (i) addresses solely deficiencies 
                        referenced in the report; and
                            (ii) is effective for not more than 
                        1 year; and
                    (B) may adopt and enforce a permanent 
                regulation, more stringent than the 
                requirements of the ICAO Technical 
                Instructions, that governs the transportation 
                by aircraft of such cells or batteries, if--
                            (i) the Secretary bases the 
                        regulation upon substantial credible 
                        evidence that the otherwise permissible 
                        presence of such cells or batteries 
                        would substantially contribute to the 
                        initiation or propagation of an onboard 
                        fire;
                            (ii) the regulation addresses 
                        solely the deficiencies in existing 
                        regulations; and
                            (iii) the regulation imposes the 
                        least disruptive and least expensive 
                        variation from existing requirements 
                        while adequately addressing identified 
                        deficiencies.
    (c) ICAO Technical Instructions Defined.--In this section, 
the term ``ICAO Technical Instructions'' means the 
International Civil Aviation Organization Technical 
Instructions for the Safe Transport of Dangerous Goods by Air 
(as amended, including amendments adopted after the date of 
enactment of this Act).

SEC. 829. CLARIFICATION OF MEMORANDUM OF UNDERSTANDING WITH OSHA.

    Not later than 6 months after the date of enactment of this 
Act, the Administrator of the Federal Aviation Administration 
shall--
            (1) establish milestones, in consultation with the 
        Occupational Safety and Health Administration, in a 
        report to Congress--
                    (A) for the completion of work begun under 
                the August 2000 memorandum of understanding 
                between the Administrations; and
                    (B) to address issues that need further 
                action, as set forth in the December 2000 joint 
                report of the Administrations; and
            (2) initiate development of a policy statement to 
        set forth the circumstances in which requirements of 
        the Occupational Safety and Health Administration may 
        be applied to crewmembers while working in an aircraft.

SEC. 830. APPROVAL OF APPLICATIONS FOR THE AIRPORT SECURITY SCREENING 
                    OPT-OUT PROGRAM.

    (a) In General.--Section 44920(b) is amended to read as 
follows:
    ``(b) Approval of Applications.--
            ``(1) In general.--Not later than 120 days after 
        the date of receipt of an application submitted by an 
        airport operator under subsection (a), the Under 
        Secretary shall approve or deny the application.
            ``(2) Standards.--The Under Secretary shall approve 
        an application submitted by an airport operator under 
        subsection (a) if the Under Secretary determines that 
        the approval would not compromise security or 
        detrimentally affect the cost-efficiency or the 
        effectiveness of the screening of passengers or 
        property at the airport.
            ``(3) Reports on denials of applications.--
                    ``(A) In general.--If the Under Secretary 
                denies an application submitted by an airport 
                operator under subsection (a), the Under 
                Secretary shall provide to the airport 
                operator, not later than 60 days following the 
                date of the denial, a written report that sets 
                forth--
                            ``(i) the findings that served as 
                        the basis for the denial;
                            ``(ii) the results of any cost or 
                        security analysis conducted in 
                        considering the application; and
                            ``(iii) recommendations on how the 
                        airport operator can address the 
                        reasons for the denial.
                    ``(B) Submission to congress.--The Under 
                Secretary shall submit to the Committee on 
                Commerce, Science, and Transportation of the 
                Senate and the Committee on Homeland Security 
                of the House of Representatives a copy of any 
                report provided to an airport operator under 
                subparagraph (A).''.
    (b) Waivers.--Section 44920(d) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and moving the 
        subparagraphs 2 ems to the right;
            (2) by striking ``The Under Secretary'' and 
        inserting the following:
            ``(1) In general.--The Under Secretary''; and
            (3) by adding at the end the following:
            ``(2) Waivers.--The Under Secretary may waive the 
        requirement of paragraph (1)(B) for any company that is 
        a United States subsidiary with a parent company that 
        has implemented a foreign ownership, control, or 
        influence mitigation plan that has been approved by the 
        Defense Security Service of the Department of Defense 
        prior to the submission of the application. The Under 
        Secretary has complete discretion to reject any 
        application from a private screening company to provide 
        screening services at an airport that requires a waiver 
        under this paragraph.''.
    (c) Recommendations of Airport Operator.--Section 44920 is 
amended by adding at the end the following:
    ``(h) Recommendations of Airport Operator.--As part of any 
submission of an application for a private screening company to 
provide screening services at an airport, the airport operator 
shall provide to the Under Secretary a recommendation as to 
which company would best serve the security screening and 
passenger needs of the airport, along with a statement 
explaining the basis of the operator's recommendation.''.
    (d) Reconsideration of Applications Pending as of January 
1, 2011.--
            (1) In general.--Upon the request of an airport 
        operator, the Secretary of Homeland Security shall 
        reconsider any application for the screening of 
        passengers and property that--
                    (A) was submitted by the operator of an 
                airport pursuant to section 44920(a) of title 
                49, United States Code;
                    (B) was pending for final decision by the 
                Secretary on any day between January 1, 2011, 
                and February 3, 2011, and was resubmitted by 
                the applicant in accordance with new guidelines 
                provided by the Secretary after February 3, 
                2011; and
                    (C) has not been approved by the Secretary 
                on or before the date of enactment of this Act.
            (2) Notice to airport operators.--In reconsidering 
        an application submitted under paragraph (1), the 
        Secretary shall--
                    (A) notify the airport operator that 
                submitted the application that the Secretary 
                will reconsider the application;
                    (B) if the application was initially 
                denied, advise the operator of the findings 
                that served as the basis for the denial; and
                    (C) request the operator to provide the 
                Secretary with such additional information as 
                the Secretary determines necessary to 
                reconsider the application.
            (3) Deadline; standards.--The Secretary shall 
        approve or deny an application to be reconsidered under 
        paragraph (1) not later than the 120th day following 
        the date of the request for reconsideration from the 
        airport operator. The Secretary shall apply the 
        standards set forth in section 44920(b) of title 49, 
        United States Code (as amended by this section), in 
        approving and denying such application.
            (4) Reports on denials of applications.--
                    (A) In general.--If the Secretary denies an 
                application of an airport operator following 
                reconsideration under this subsection, the 
                Secretary shall provide to the airport operator 
                a written report that sets forth--
                            (i) the findings that served as the 
                        basis for the denial; and
                            (ii) the results of any cost or 
                        security analysis conducted in 
                        considering the application.
                    (B) Submission to congress.--The Secretary 
                shall submit to the Committee on Commerce, 
                Science, and Transportation of the Senate and 
                the Committee on Homeland Security of the House 
                of Representatives a copy of any report 
                provided to an airport operator under 
                subparagraph (A).

          TITLE IX--FEDERAL AVIATION RESEARCH AND DEVELOPMENT

SEC. 901. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 48102(a) is amended--
            (1) in the matter before paragraph (1) by striking 
        ``of this title'' and inserting ``of this title and, 
        for each of fiscal years 2012 through 2015, under 
        subsection (g)'';
            (2) by striking paragraphs (1) through (8);
            (3) by redesignating paragraphs (9) through (15) as 
        paragraphs (1) through (7), respectively;
            (4) in paragraph (3) (as so redesignated)--
                    (A) in subparagraph (K) by adding ``and'' 
                at the end; and
                    (B) in subparagraph (L) by striking ``and'' 
                at the end; and
            (5) by striking paragraph (16) and inserting the 
        following:
            ``(8) $168,000,000 for each of fiscal years 2012 
        through 2015.''.
    (b) Specific Program Limitations.--Section 48102 is amended 
by inserting after subsection (f) the following:
    ``(g) Specific Authorizations.--The following programs 
described in the research, engineering, and development account 
of the national aviation research plan required under section 
44501(c) are authorized:
            ``(1) Fire Research and Safety.
            ``(2) Propulsion and Fuel Systems.
            ``(3) Advanced Materials/Structural Safety.
            ``(4) Atmospheric Hazards--Aircraft Icing/Digital 
        System Safety.
            ``(5) Continued Airworthiness.
            ``(6) Aircraft Catastrophic Failure Prevention 
        Research.
            ``(7) Flightdeck/Maintenance/System Integration 
        Human Factors.
            ``(8) System Safety Management.
            ``(9) Air Traffic Control/Technical Operations 
        Human Factors.
            ``(10) Aeromedical Research.
            ``(11) Weather Program.
            ``(12) Unmanned Aircraft Systems Research.
            ``(13) NextGen--Alternative Fuels for General 
        Aviation.
            ``(14) Joint Planning and Development Office.
            ``(15) NextGen--Wake Turbulence Research.
            ``(16) NextGen--Air Ground Integration Human 
        Factors.
            ``(17) NextGen--Self Separation Human Factors.
            ``(18) NextGen--Weather Technology in the Cockpit.
            ``(19) Environment and Energy Research.
            ``(20) NextGen Environmental Research--Aircraft 
        Technologies, Fuels, and Metrics.
            ``(21) System Planning and Resource Management.
            ``(22) The William J. Hughes Technical Center 
        Laboratory Facility.''.
    (c) Program Authorizations.--From the other accounts 
described in the national aviation research plan required under 
section 44501(c) of title 49, United States Code, the following 
research and development activities are authorized:
            (1) Runway Incursion Reduction.
            (2) System Capacity, Planning, and Improvement.
            (3) Operations Concept Validation.
            (4) NAS Weather Requirements.
            (5) Airspace Management Program.
            (6) NextGen--Air Traffic Control/Technical 
        Operations Human Factors.
            (7) NextGen--Environment and Energy--Environmental 
        Management System and Advanced Noise and Emissions 
        Reduction.
            (8) NextGen--New Air Traffic Management 
        Requirements.
            (9) NextGen--Operations Concept Validation-- 
        Validation Modeling.
            (10) NextGen--System Safety Management 
        Transformation.
            (11) NextGen--Wake Turbulence--Recategorization.
            (12) NextGen--Operational Assessments.
            (13) NextGen--Staffed NextGen Towers.
            (14) Center for Advanced Aviation System 
        Development.
            (15) Airports Technology Research Program-- 
        Capacity.
            (16) Airports Technology Research Program-- Safety.
            (17) Airports Technology Research Program-- 
        Environment.
            (18) Airport Cooperative Research--Capacity.
            (19) Airport Cooperative Research--Environment.
            (20) Airport Cooperative Research--Safety.

SEC. 902. DEFINITIONS.

    In this title, the following definitions apply:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the FAA.
            (2) FAA.--The term ``FAA'' means the Federal 
        Aviation Administration.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the same 
        meaning given the term in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a)).
            (4) NASA.--The term ``NASA'' means the National 
        Aeronautics and Space Administration.
            (5) NOAA.--The term ``NOAA'' means the National 
        Oceanic and Atmospheric Administration.

SEC. 903. UNMANNED AIRCRAFT SYSTEMS.

    (a) Research Initiative.--Section 44504(b) is amended--
            (1) in paragraph (6) by striking ``and'' after the 
        semicolon;
            (2) in paragraph (7) by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(8) in conjunction with other Federal agencies, 
        as appropriate, to develop technologies and methods to 
        assess the risk of and prevent defects, failures, and 
        malfunctions of products, parts, and processes for use 
        in all classes of unmanned aircraft systems that could 
        result in a catastrophic failure of the unmanned 
        aircraft that would endanger other aircraft in the 
        national airspace system.''.
    (b) Systems, Procedures, Facilities, and Devices.--Section 
44505(b) is amended--
            (1) in paragraph (4) by striking ``and'' after the 
        semicolon;
            (2) in paragraph (5)(C) by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(6) to develop a better understanding of the 
        relationship between human factors and unmanned 
        aircraft system safety; and
            ``(7) to develop dynamic simulation models for 
        integrating all classes of unmanned aircraft systems 
        into the national airspace system without any 
        degradation of existing levels of safety for all 
        national airspace system users.''.

SEC. 904. RESEARCH PROGRAM ON RUNWAYS.

    Using amounts made available under section 48102(a) of 
title 49, United States Code, the Administrator shall continue 
to carry out a research program under which the Administrator 
may make grants to and enter into cooperative agreements with 
institutions of higher education and pavement research 
organizations for research and technology demonstrations 
related to--
            (1) the design, construction, rehabilitation, and 
        repair of airfield pavements to aid in the development 
        of safer, more cost effective, and more durable 
        airfield pavements; and
            (2) engineered material restraining systems for 
        runways at both general aviation airports and airports 
        with commercial air carrier operations.

SEC. 905. RESEARCH ON DESIGN FOR CERTIFICATION.

    Section 44505 is amended--
            (1) by redesignating subsection (d) as subsection 
        (e); and
            (2) by inserting after subsection (c) the 
        following:
    ``(d) Research on Design for Certification.--
            ``(1) Research.--Not later than 1 year after the 
        date of enactment of the FAA Modernization and Reform 
        Act of 2012, the Administrator shall conduct research 
        on methods and procedures to improve both confidence in 
        and the timeliness of certification of new technologies 
        for their introduction into the national airspace 
        system.
            ``(2) Research plan.--Not later than 6 months after 
        the date of enactment of the FAA Modernization and 
        Reform Act of 2012, the Administrator shall develop a 
        plan for the research under paragraph (1) that contains 
        objectives, proposed tasks, milestones, and a 5-year 
        budgetary profile.
            ``(3) Review.--The Administrator shall enter into 
        an arrangement with the National Research Council to 
        conduct an independent review of the plan developed 
        under paragraph (2) and shall provide the results of 
        that review to the Committee on Science, Space, and 
        Technology of the House of Representatives and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate not later than 18 months after the date of 
        enactment of the FAA Modernization and Reform Act of 
        2012.''.

SEC. 906. AIRPORT COOPERATIVE RESEARCH PROGRAM.

    Section 44511(f) is amended--
            (1) in paragraph (1) by striking ``establish a 4-
        year pilot'' and inserting ``maintain an''; and
            (2) in paragraph (4)--
                    (A) by striking ``Not later than 6 months 
                after the expiration of the program under this 
                subsection,'' and inserting ``Not later than 
                September 30, 2012,''; and
                    (B) by striking ``program, including 
                recommendations as to the need for establishing 
                a permanent airport cooperative research 
                program'' and inserting ``program''.

SEC. 907. CENTERS OF EXCELLENCE.

    (a) Government's Share of Costs.--Section 44513(f) is 
amended to read as follows:
    ``(f) Government's Share of Costs.--The United States 
Government's share of establishing and operating a center and 
all related research activities that grant recipients carry out 
shall not exceed 50 percent of the costs, except that the 
Administrator may increase such share to a maximum of 75 
percent of the costs for a fiscal year if the Administrator 
determines that a center would be unable to carry out the 
authorized activities described in this section without 
additional funds.''.
    (b) Annual Report.--Section 44513 is amended by adding at 
the end the following:
    ``(h) Annual Report.--The Administrator shall transmit 
annually to the Committee on Science, Space, and Technology of 
the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate at the time of the 
President's budget request a report that lists--
            ``(1) the research projects that have been 
        initiated by each center in the preceding year;
            ``(2) the amount of funding for each research 
        project and the funding source;
            ``(3) the institutions participating in each 
        research project and their shares of the overall 
        funding for each research project; and
            ``(4) the level of cost-sharing for each research 
        project.''.

SEC. 908. CENTER OF EXCELLENCE FOR AVIATION HUMAN RESOURCE RESEARCH.

    (a) Establishment.--Using amounts made available under 
section 48102(a) of title 49, United States Code, the 
Administrator may establish a center of excellence to conduct 
research on--
            (1) human performance in the air transportation 
        environment, including among air transportation 
        personnel such as air traffic controllers, pilots, and 
        technicians; and
            (2) any other aviation human resource issue 
        pertinent to developing and maintaining a safe and 
        efficient air transportation system.
    (b) Activities.--Activities conducted under this section 
may include the following:
            (1) Research, development, and evaluation of 
        training programs for air traffic controllers, aviation 
        safety inspectors, airway transportation safety 
        specialists, and engineers.
            (2) Research and development of best practices for 
        recruitment of individuals into the aviation field for 
        mission critical positions.
            (3) Research, in consultation with other relevant 
        Federal agencies, to develop a baseline of general 
        aviation employment statistics and an analysis of 
        future needs in the aviation field.
            (4) Research and the development of a comprehensive 
        assessment of the airframe and power plant technician 
        certification process and its effect on employment 
        trends.
            (5) Evaluation of aviation maintenance technician 
        school environments.
            (6) Research and an assessment of the ability to 
        develop training programs to allow for the transition 
        of recently unemployed and highly skilled mechanics 
        into the aviation field.

SEC. 909. INTERAGENCY RESEARCH ON AVIATION AND THE ENVIRONMENT.

    (a) In General.--Using amounts made available under section 
48102(a) of title 49, United States Code, the Administrator, in 
coordination with NASA and after consultation with other 
relevant agencies, may maintain a research program to assess 
the potential effect of aviation activities on the environment 
and, if warranted, to evaluate approaches to address any such 
effect.
    (b) Research Plan.--
            (1) In general.--The Administrator, in coordination 
        with NASA and after consultation with other relevant 
        agencies, shall jointly develop a plan to carry out the 
        research under subsection (a).
            (2) Contents.--The plan shall contain an inventory 
        of current interagency research being undertaken in 
        this area, future research objectives, proposed tasks, 
        milestones, and a 5-year budgetary profile.
            (3) Requirements.--The plan--
                    (A) shall be completed not later than 1 
                year after the date of enactment of this Act;
                    (B) shall be submitted to Congress for 
                review; and
                    (C) shall be updated, as appropriate, every 
                3 years after the initial submission.

SEC. 910. AVIATION FUEL RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--Using amounts made available under section 
48102(a) of title 49, United States Code, the Administrator, in 
coordination with the Administrator of NASA, shall continue 
research and development activities into the qualification of 
an unleaded aviation fuel and safe transition to this fuel for 
the fleet of piston engine aircraft.
    (b) Requirements.--In carrying out the program under 
subsection (a), the Administrator shall, at a minimum--
            (1) not later than 120 days after the date of 
        enactment of this Act, develop a research and 
        development plan containing the specific research and 
        development objectives, including consideration of 
        aviation safety, technical feasibility, and other 
        relevant factors, and the anticipated timetable for 
        achieving the objectives;
            (2) assess the methods and processes by which the 
        FAA and industry may expeditiously certify and approve 
        new aircraft and recertify existing aircraft with 
        respect to unleaded aviation fuel;
            (3) assess technologies that modify existing piston 
        engine aircraft to enable safe operation of the 
        aircraft using unleaded aviation fuel and determine the 
        resources necessary to certify those technologies; and
            (4) develop recommendations for appropriate 
        policies and guidelines to facilitate a transition to 
        unleaded aviation fuel for piston engine aircraft.
    (c) Collaboration.--In carrying out the program under 
subsection (a), the Administrator shall collaborate with--
            (1) industry groups representing aviation 
        consumers, manufacturers, and fuel producers and 
        distributors; and
            (2) other appropriate Federal agencies.
    (d) Report.--Not later than 270 days after the date of 
enactment of this Act, the Administrator shall provide to the 
Committee on Science, Space, and Technology of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the plan, information 
obtained, and policies and guidelines developed pursuant to 
subsection (b).

SEC. 911. RESEARCH PROGRAM ON ALTERNATIVE JET FUEL TECHNOLOGY FOR CIVIL 
                    AIRCRAFT.

    (a) In General.--Using amounts made available under section 
48102(a) of title 49, United States Code, the Administrator 
shall establish a research program to assist in the development 
and qualification of jet fuel from alternative sources (such as 
natural gas, biomass, ethanol, butanol, and hydrogen) and other 
renewable sources.
    (b) Authority To Make Grants.--The Administrator shall 
carry out the program through the use of grants or other 
measures authorized under section 106(l)(6) of such title, 
including reimbursable agreements with other Federal agencies.
    (c) Participation in Program.--
            (1) Participation of educational and research 
        institutions.--In carrying out the program, the 
        Administrator shall include participation by--
                    (A) educational and research institutions 
                that have existing facilities and leverage 
                private sector partnerships; and
                    (B) consortia with experience across the 
                supply chain, including with research, 
                feedstock development and production, small-
                scale development, testing, and technology 
                evaluation related to the creation, processing, 
                production, and transportation of alternative 
                aviation fuel.
            (2) Use of nasa facilities.--In carrying out the 
        program, the Administrator shall consider utilizing the 
        existing capacity in aeronautics research at Langley 
        Research Center, Glenn Research Center, and other 
        appropriate facilities of NASA.
    (d) Designation of Institution as a Center of Excellence.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Administrator may 
        designate an institution described in subsection 
        (c)(1)(A) as a Center of Excellence for Alternative 
        Jet-Fuel Research in Civil Aircraft.
            (2) Effect of designation.--The center designated 
        under paragraph (1) shall become, upon its 
        designation--
                    (A) a member of the Consortium for 
                Continuous Low Energy, Emissions, and Noise of 
                the FAA; and
                    (B) part of a Joint Center of Excellence 
                with the Partnership for Air Transportation 
                Noise and Emission Reduction FAA Center of 
                Excellence.

SEC. 912. REVIEW OF FAA'S ENERGY-RELATED AND ENVIRONMENT-RELATED 
                    RESEARCH PROGRAMS.

    (a) Review.--Using amounts made available under section 
48102(a) of title 49, United States Code, the Administrator 
shall enter into an arrangement for an independent external 
review of FAA energy-related and environment-related research 
programs. The review shall assess whether--
            (1) the programs have well-defined, prioritized, 
        and appropriate research objectives;
            (2) the programs are properly coordinated with the 
        energy-related and environment-related research 
        programs at NASA, NOAA, and other relevant agencies;
            (3) the programs have allocated appropriate 
        resources to each of the research objectives; and
            (4) there exist suitable mechanisms for 
        transitioning the research results into the FAA's 
        operational technologies and procedures and 
        certification activities.
    (b) Report.--Not later than 18 months after the date of 
enactment of this Act, the Administrator shall submit a report 
to the Committee on Science, Space, and Technology of the House 
of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate containing the results of the 
review.

SEC. 913. REVIEW OF FAA'S AVIATION SAFETY-RELATED RESEARCH PROGRAMS.

    (a) Review.--Using amounts made available under section 
48102(a) of title 49, United States Code, the Administrator 
shall enter into an arrangement for an independent external 
review of the FAA's aviation safety-related research programs. 
The review shall assess whether--
            (1) the programs have well-defined, prioritized, 
        and appropriate research objectives;
            (2) the programs are properly coordinated with the 
        safety research programs of NASA and other relevant 
        Federal agencies;
            (3) the programs have allocated appropriate 
        resources to each of the research objectives;
            (4) the programs should include a determination 
        about whether a survey of participants across the air 
        transportation system is an appropriate way to study 
        safety risks within such system; and
            (5) there exist suitable mechanisms for 
        transitioning the research results from the programs 
        into the FAA's operational technologies and procedures 
        and certification activities in a timely manner.
    (b) Aviation Safety-Related Research Programs To Be 
Assessed.--The FAA aviation safety-related research programs to 
be assessed under the review shall include, at a minimum, the 
following:
            (1) Air traffic control/technical operations human 
        factors.
            (2) Runway incursion reduction.
            (3) Flightdeck/maintenance system integration human 
        factors.
            (4) Airports technology research--safety.
            (5) Airport Cooperative Research Program-- safety.
            (6) Weather Program.
            (7) Atmospheric hazards/digital system safety.
            (8) Fire research and safety.
            (9) Propulsion and fuel systems.
            (10) Advanced materials/structural safety.
            (11) Aging aircraft.
            (12) Aircraft catastrophic failure prevention 
        research.
            (13) Aeromedical research.
            (14) Aviation safety risk analysis.
            (15) Unmanned aircraft systems research.
    (c) Report.--Not later than 14 months after the date of 
enactment of this Act, the Administrator shall submit to the 
Committee on Science, Space, and Technology of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of the 
review.

SEC. 914. PRODUCTION OF CLEAN COAL FUEL TECHNOLOGY FOR CIVILIAN 
                    AIRCRAFT.

    (a) Establishment of Research Program.--Using amounts made 
available under section 48102(a) of title 49, United States 
Code, the Administrator shall establish a research program 
related to developing jet fuel from clean coal.
    (b) Authority To Make Grants.--The Administrator shall 
carry out the program through grants or other measures 
authorized under section 106(l)(6) of such title, including 
reimbursable agreements with other Federal agencies.
    (c) Participation in Program.--In carrying out the program, 
the Administrator shall include participation by educational 
and research institutions that have existing facilities and 
experience in the development and deployment of technology that 
processes coal into aviation fuel.
    (d) Designation of Institution as a Center of Excellence.--
Not later than 180 days after the date of enactment of this 
Act, the Administrator may designate an institution described 
in subsection (c) as a Center of Excellence for Coal-to-Jet-
Fuel Research.

SEC. 915. WAKE TURBULENCE, VOLCANIC ASH, AND WEATHER RESEARCH.

    Not later than 60 days after the date of enactment of this 
Act, the Administrator shall--
            (1) initiate an evaluation of proposals related to 
        research on the nature of wake vortexes that would 
        increase national airspace system capacity by reducing 
        existing spacing requirements between aircraft of all 
        sizes;
            (2) begin implementation of a system to improve 
        volcanic ash avoidance options for aircraft, including 
        the development of a volcanic ash warning and 
        notification system for aviation; and
            (3) coordinate with NOAA, NASA, and other 
        appropriate Federal agencies to conduct research to 
        reduce the hazards presented to commercial aviation 
        related to--
                    (A) ground de-icing and anti-icing, ice 
                pellets, and freezing drizzle;
                    (B) oceanic weather, including convective 
                weather;
                    (C) en route turbulence prediction and 
                detection; and
                    (D) all hazards during oceanic operations, 
                where commercial traffic is high and only 
                rudimentary satellite sensing is available.

SEC. 916. REAUTHORIZATION OF CENTER OF EXCELLENCE IN APPLIED RESEARCH 
                    AND TRAINING IN THE USE OF ADVANCED MATERIALS IN 
                    TRANSPORT AIRCRAFT.

    Section 708(b) of the Vision 100--Century of Aviation 
Reauthorization Act (49 U.S.C. 44504 note) is amended by 
striking ``for fiscal year 2004'' and inserting ``for each of 
fiscal years 2012 through 2015''.

SEC. 917. RESEARCH AND DEVELOPMENT OF EQUIPMENT TO CLEAN AND MONITOR 
                    THE ENGINE AND APU BLEED AIR SUPPLIED ON 
                    PRESSURIZED AIRCRAFT.

    (a) In General.--Not later than 60 days after the date of 
enactment of this Act, the Administrator, to the extent 
practicable, shall implement a research program for the 
identification or development of appropriate and effective air 
cleaning technology and sensor technology for the engine and 
auxiliary power unit bleed air supplied to the passenger cabin 
and flight deck of a pressurized aircraft.
    (b) Technology Requirements.--The technology referred to in 
subsection (a) shall have the capacity, at a minimum--
            (1) to remove oil-based contaminants from the bleed 
        air supplied to the passenger cabin and flight deck; 
        and
            (2) to detect and record oil-based contaminants in 
        the portion of the total air supplied to the passenger 
        cabin and flight deck from bleed air.
    (c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to the 
Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Transportation and Infrastructure 
and the Committee on Science, Space, and Technology of the 
House of Representatives a report on the results of the 
research and development work carried out under this section.

SEC. 918. EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR NEXTGEN.

    (a) Review.--The Administrator shall enter into an 
arrangement for an independent external review of the 
enterprise architecture for the Next Generation Air 
Transportation System.
    (b) Contents.--At a minimum, the review to be conducted 
under subsection (a) shall--
            (1) highlight the technical activities, including 
        human-system design, organizational design, and other 
        safety and human factor aspects of the system, that 
        will be necessary to successfully transition current 
        and planned modernization programs to the future system 
        envisioned by the Joint Planning and Development Office 
        of the FAA;
            (2) assess technical, cost, and schedule risk for 
        the software development that will be necessary to 
        achieve the expected benefits from a highly automated 
        air traffic management system and the implications for 
        ongoing modernization projects; and
            (3) determine how risks with automation efforts for 
        the Next Generation Air Transportation System can be 
        mitigated based on the experiences of other public or 
        private entities in developing complex, software-
        intensive systems.
    (c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall submit to the 
Committee on Transportation and Infrastructure and the 
Committee on Science, Space, and Technology of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing the results of 
the review conducted pursuant to subsection (a).

SEC. 919. AIRPORT SUSTAINABILITY PLANNING WORKING GROUP.

    (a) In General.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall prepare and 
submit a problem statement to the Transportation Research Board 
for the purpose of initiating a study under the Airport 
Cooperative Research Program on airport sustainability 
practices.
    (b) Functions.--The purpose of the study shall be--
            (1) to examine and develop best airport practices 
        and metrics for the sustainable design, construction, 
        planning, maintenance, and operation of an airport;
            (2) to examine potential standards for a rating 
        system based on the best sustainable practices and 
        metrics;
            (3) to examine potential standards for a voluntary 
        airport rating process based on the best sustainable 
        practices, metrics, and ratings; and
            (4) to examine and develop recommendations for 
        future actions with regard to sustainability.
    (c) Report.--Not later than 18 months after the date of 
initiation of the study, a report on the study shall be 
submitted to the Administrator and the Committee on Science, 
Space, and Technology of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate.

                   TITLE X--NATIONAL MEDIATION BOARD

SEC. 1001. RULEMAKING AUTHORITY.

    Title I of the Railway Labor Act (45 U.S.C. 151 et seq.) is 
amended by inserting after section 10 the following:

``SEC. 10A. RULES AND REGULATIONS.

    ``(a) In General.--The Mediation Board shall have the 
authority from time to time to make, amend, and rescind, in the 
manner prescribed by section 553 of title 5, United States 
Code, and after opportunity for a public hearing, such rules 
and regulations as may be necessary to carry out the provisions 
of this Act.
    ``(b) Application.--The requirements of subsection (a) 
shall not apply to any rule or proposed rule to which the third 
sentence of section 553(b) of title 5, United States Code, 
applies.''.

SEC. 1002. RUNOFF ELECTION RULES.

    Paragraph Ninth of section 2 of the Railway Labor Act (45 
U.S.C. 152) is amended by inserting after the fourth sentence 
the following: ``In any such election for which there are 3 or 
more options (including the option of not being represented by 
any labor organization) on the ballot and no such option 
receives a majority of the valid votes cast, the Mediation 
Board shall arrange for a second election between the options 
receiving the largest and the second largest number of 
votes.''.

SEC. 1003. BARGAINING REPRESENTATIVE CERTIFICATION.

    Section 2 of the Railway Labor Act (45 U.S.C. 152) is 
amended by adding at the end the following:
     ``Twelfth. Showing of interest for representation 
elections. The Mediation Board, upon receipt of an application 
requesting that an organization or individual be certified as 
the representative of any craft or class of employees, shall 
not direct an election or use any other method to determine who 
shall be the representative of such craft or class unless the 
Mediation Board determines that the application is supported by 
a showing of interest from not less than 50 percent of the 
employees in the craft or class.''.

SEC. 1004. OVERSIGHT.

    Title I of the Railway Labor Act (45 U.S.C. 151 et seq.) is 
amended by adding at the end the following:

``SEC. 15. EVALUATION AND AUDIT OF MEDIATION BOARD.

    ``(a) Evaluation and Audit of Mediation Board.--
            ``(1) In general.--In order to promote economy, 
        efficiency, and effectiveness in the administration of 
        the programs, operations, and activities of the 
        Mediation Board, the Comptroller General of the United 
        States shall evaluate and audit the programs and 
        expenditures of the Mediation Board. Such an evaluation 
        and audit shall be conducted not less frequently than 
        every 2 years, but may be conducted as determined 
        necessary by the Comptroller General or the appropriate 
        congressional committees.
            ``(2) Responsibility of comptroller general.--In 
        carrying out the evaluation and audit required under 
        paragraph (1), the Comptroller General shall evaluate 
        and audit the programs, operations, and activities of 
        the Mediation Board, including, at a minimum--
                    ``(A) information management and security, 
                including privacy protection of personally 
                identifiable information;
                    ``(B) resource management;
                    ``(C) workforce development;
                    ``(D) procurement and contracting planning, 
                practices, and policies;
                    ``(E) the extent to which the Mediation 
                Board follows leading practices in selected 
                management areas; and
                    ``(F) the processes the Mediation Board 
                follows to address challenges in--
                            ``(i) initial investigations of 
                        applications requesting that an 
                        organization or individual be certified 
                        as the representative of any craft or 
                        class of employees;
                            ``(ii) determining and certifying 
                        representatives of employees; and
                            ``(iii) ensuring that the process 
                        occurs without interference, influence, 
                        or coercion.
    ``(b) Immediate Review of Certification Procedures.--Not 
later than 180 days after the date of enactment of this 
section, the Comptroller General shall review the processes 
applied by the Mediation Board to certify or decertify 
representation of employees by a labor organization and make 
recommendations to the Board and appropriate congressional 
committees regarding actions that may be taken by the Board or 
Congress to ensure that the processes are fair and reasonable 
for all parties. Such review shall be conducted separately from 
any evaluation and audit under subsection (a) and shall 
include, at a minimum--
            ``(1) an evaluation of the existing processes and 
        changes to such processes that have occurred since the 
        establishment of the Mediation Board and whether those 
        changes are consistent with congressional intent; and
            ``(2) a description of the extent to which such 
        processes are consistent with similar processes applied 
        to other Federal or State agencies with jurisdiction 
        over labor relations, and an evaluation of any 
        justifications for any discrepancies between the 
        processes of the Mediation Board and such similar 
        Federal or State processes.
    ``(c) Appropriate Congressional Committee Defined.--In this 
section, the term `appropriate congressional committees' means 
the Committee on Transportation and Infrastructure of the House 
of Representatives, the Committee on Commerce, Science, and 
Transportation of the Senate, and the Committee on Health, 
Education, Labor, and Pensions of the Senate.''.

  TITLE XI--AIRPORT AND AIRWAY TRUST FUND PROVISIONS AND RELATED TAXES

SEC. 1100. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this 
title an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 1101. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST FUND.

    (a) Fuel Taxes.--Subparagraph (B) of section 4081(d)(2) is 
amended by striking ``February 17, 2012'' and inserting 
``September 30, 2015''.
    (b) Ticket Taxes.--
            (1) Persons.--Clause (ii) of section 4261(j)(1)(A) 
        is amended by striking ``February 17, 2012'' and 
        inserting ``September 30, 2015''.
            (2) Property.--Clause (ii) of section 4271(d)(1)(A) 
        is amended by striking ``February 17, 2012'' and 
        inserting ``September 30, 2015''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on February 18, 2012.

SEC. 1102. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
                    AUTHORITY.

    (a) In General.--Paragraph (1) of section 9502(d) is 
amended--
            (1) by striking ``February 18, 2012'' in the matter 
        preceding subparagraph (A) and inserting ``October 1, 
        2015'', and
            (2) by striking the semicolon at the end of 
        subparagraph (A) and inserting ``or the FAA 
        Modernization and Reform Act of 2012;''.
    (b) Conforming Amendment.--Paragraph (2) of section 9502(e) 
is amended by striking ``February 18, 2012'' and inserting 
``October 1, 2015''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on February 18, 2012.

SEC. 1103. TREATMENT OF FRACTIONAL AIRCRAFT OWNERSHIP PROGRAMS.

    (a) Fuel Surtax.--
            (1) In general.--Subchapter B of chapter 31 is 
        amended by adding at the end the following new section:

``SEC. 4043. SURTAX ON FUEL USED IN AIRCRAFT PART OF A FRACTIONAL 
                    OWNERSHIP PROGRAM.

    ``(a) In General.--There is hereby imposed a tax on any 
liquid used (during any calendar quarter by any person) in a 
fractional program aircraft as fuel--
            ``(1) for the transportation of a qualified 
        fractional owner with respect to the fractional 
        ownership aircraft program of which such aircraft is a 
        part, or
            ``(2) with respect to the use of such aircraft on 
        account of such a qualified fractional owner, including 
        use in deadhead service.
    ``(b) Amount of Tax.--The rate of tax imposed by subsection 
(a) is 14.1 cents per gallon.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Fractional program aircraft.--The term 
        `fractional program aircraft' means, with respect to 
        any fractional ownership aircraft program, any aircraft 
        which--
                    ``(A) is listed as a fractional program 
                aircraft in the management specifications 
                issued to the manager of such program by the 
                Federal Aviation Administration under subpart K 
                of part 91 of title 14, Code of Federal 
                Regulations, and
                    ``(B) is registered in the United States.
            ``(2) Fractional ownership aircraft program.--The 
        term `fractional ownership aircraft program' means a 
        program under which--
                    ``(A) a single fractional ownership program 
                manager provides fractional ownership program 
                management services on behalf of the fractional 
                owners,
                    ``(B) there are 1 or more fractional owners 
                per fractional program aircraft, with at least 
                1 fractional program aircraft having more than 
                1 owner,
                    ``(C) with respect to at least 2 fractional 
                program aircraft, none of the ownership 
                interests in such aircraft are--
                            ``(i) less than the minimum 
                        fractional ownership interest, or
                            ``(ii) held by the program manager 
                        referred to in subparagraph (A),
                    ``(D) there exists a dry-lease aircraft 
                exchange arrangement among all of the 
                fractional owners, and
                    ``(E) there are multi-year program 
                agreements covering the fractional ownership, 
                fractional ownership program management 
                services, and dry-lease aircraft exchange 
                aspects of the program.
            ``(3) Definitions related to fractional ownership 
        interests.--
                    ``(A) Qualified fractional owner.--The term 
                `qualified fractional owner' means any 
                fractional owner which has a minimum fractional 
                ownership interest in at least one fractional 
                program aircraft.
                    ``(B) Minimum fractional ownership 
                interest.--The term `minimum fractional 
                ownership interest' means, with respect to each 
                type of aircraft--
                            ``(i) a fractional ownership 
                        interest equal to or greater than 1/16 
                        of at least 1 subsonic, fixed wing, or 
                        powered lift aircraft, or
                            ``(ii) a fractional ownership 
                        interest equal to or greater than 1/32 
                        of at least 1 rotorcraft aircraft.
                    ``(C) Fractional ownership interest.--The 
                term `fractional ownership interest' means--
                            ``(i) the ownership of an interest 
                        in a fractional program aircraft,
                            ``(ii) the holding of a multi-year 
                        leasehold interest in a fractional 
                        program aircraft, or
                            ``(iii) the holding of a multi-year 
                        leasehold interest which is convertible 
                        into an ownership interest in a 
                        fractional program aircraft.
                    ``(D) Fractional owner.--The term 
                `fractional owner' means any person owning any 
                interest (including the entire interest) in a 
                fractional program aircraft.
            ``(4) Dry-lease aircraft exchange.--The term `dry-
        lease aircraft exchange' means an agreement, documented 
        by the written program agreements, under which the 
        fractional program aircraft are available, on an as 
        needed basis without crew, to each fractional owner.
            ``(5) Special rule relating to use of fractional 
        program aircraft for flight demonstration, maintenance, 
        or training.--For purposes of subsection (a), a 
        fractional program aircraft shall not be considered to 
        be used for the transportation of a qualified 
        fractional owner, or on account of such qualified 
        fractional owner, when it is used for flight 
        demonstration, maintenance, or crew training.
            ``(6) Special rule relating to deadhead service.--A 
        fractional program aircraft shall not be considered to 
        be used on account of a qualified fractional owner when 
        it is used in deadhead service and a person other than 
        a qualified fractional owner is separately charged for 
        such service.
    ``(d) Termination.--This section shall not apply to liquids 
used as a fuel in an aircraft after September 30, 2021.''.
            (2) Conforming amendment.--Subsection (e) of 
        section 4082 is amended by inserting ``(other than 
        kerosene with respect to which tax is imposed under 
        section 4043)'' after ``In the case of kerosene''.
            (3) Transfer of revenues to airport and airway 
        trust fund.--Paragraph (1) of section 9502(b) is 
        amended by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively, and by 
        inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) section 4043 (relating to surtax on 
                fuel used in aircraft part of a fractional 
                ownership program),''.
            (4) Clerical amendment.--The table of sections for 
        subchapter B of chapter 31 is amended by adding at the 
        end the following new item:

``Sec. 4043. Surtax on fuel used in aircraft part of a fractional 
          ownership program.''.
    (b) Fractional Ownership Programs Treated as Non-commercial 
Aviation.--Subsection (b) of section 4083 is amended by adding 
at the end the following new sentence: ``Such term shall not 
include the use of any aircraft before October 1, 2015, if tax 
is imposed under section 4043 with respect to the fuel consumed 
in such use or if no tax is imposed on such use under section 
4043 by reason of subsection (c)(5) thereof.''.
    (c) Exemption From Tax on Transportation of Persons.--
Section 4261, as amended by this Act, is amended by 
redesignating subsection (j) as subsection (k) and by inserting 
after subsection (i) the following new subsection:
    ``(j) Exemption for Aircraft in Fractional Ownership 
Aircraft Programs.--No tax shall be imposed by this section or 
section 4271 on any air transportation if tax is imposed under 
section 4043 with respect to the fuel used in such 
transportation. This subsection shall not apply after September 
30, 2015.''.
    (d) Effective Dates.--
            (1) Subsection (a).--The amendments made by 
        subsection (a) shall apply to fuel used after March 31, 
        2012.
            (2) Subsection (b).--The amendment made by 
        subsection (b) shall apply to uses of aircraft after 
        March 31, 2012.
            (3) Subsection (c).--The amendments made by 
        subsection (c) shall apply to taxable transportation 
        provided after March 31, 2012.

SEC. 1104. TRANSPARENCY IN PASSENGER TAX DISCLOSURES.

    (a) In General.--Section 7275 is amended--
            (1) by redesignating subsection (c) as subsection 
        (d),
            (2) by striking ``subsection (a) or (b)'' in 
        subsection (d), as so redesignated, and inserting 
        ``subsection (a), (b), or (c)'', and
            (3) by inserting after subsection (b) the following 
        new subsection:
    ``(c) Non-tax Charges.--
            ``(1) In general.--In the case of transportation by 
        air for which disclosure on the ticket or advertising 
        for such transportation of the amounts paid for 
        passenger taxes is required by subsection (a)(2) or 
        (b)(1)(B), if such amounts are separately disclosed, it 
        shall be unlawful for the disclosure of such amounts to 
        include any amounts not attributable to such taxes.
            ``(2) Inclusion in transportation cost.--Nothing in 
        this subsection shall prohibit the inclusion of amounts 
        not attributable to the taxes imposed by subsection 
        (a), (b), or (c) of section 4261 in the disclosure of 
        the amount paid for transportation as required by 
        subsection (a)(1) or (b)(1)(A), or in a separate 
        disclosure of amounts not attributable to such 
        taxes.''.
    (b) Effective Date.--The amendments made by this section 
shall apply to taxable transportation provided after March 31, 
2012.

SEC. 1105. TAX-EXEMPT BOND FINANCING FOR FIXED-WING EMERGENCY MEDICAL 
                    AIRCRAFT.

    (a) In General.--Subsection (e) of section 147 is amended 
by adding at the end the following new sentence: ``The 
preceding sentence shall not apply to any fixed-wing aircraft 
equipped for, and exclusively dedicated to providing, acute 
care emergency medical services (within the meaning of section 
4261(g)(2)).''.
    (b) Effective Date.--The amendment made by this section 
shall apply to obligations issued after the date of the 
enactment of this Act.

SEC. 1106. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER BANKRUPTCY.

    (a) General Rules.--
            (1) Rollover of airline payment amount.--If a 
        qualified airline employee receives any airline payment 
        amount and transfers any portion of such amount to a 
        traditional IRA within 180 days of receipt of such 
        amount (or, if later, within 180 days of the date of 
        the enactment of this Act), then such amount (to the 
        extent so transferred) shall be treated as a rollover 
        contribution described in section 402(c) of the 
        Internal Revenue Code of 1986. A qualified airline 
        employee making such a transfer may exclude from gross 
        income the amount transferred, in the taxable year in 
        which the airline payment amount was paid to the 
        qualified airline employee by the commercial passenger 
        airline carrier.
            (2) Transfer of amounts attributable to airline 
        payment amount following rollover to roth ira.--A 
        qualified airline employee who has contributed an 
        airline payment amount to a Roth IRA that is treated as 
        a qualified rollover contribution pursuant to section 
        125 of the Worker, Retiree, and Employer Recovery Act 
        of 2008, may transfer to a traditional IRA, in a 
        trustee-to-trustee transfer, all or any part of the 
        contribution (together with any net income allocable to 
        such contribution), and the transfer to the traditional 
        IRA will be deemed to have been made at the time of the 
        rollover to the Roth IRA, if such transfer is made 
        within 180 days of the date of the enactment of this 
        Act. A qualified airline employee making such a 
        transfer may exclude from gross income the airline 
        payment amount previously rolled over to the Roth IRA, 
        to the extent an amount attributable to the previous 
        rollover was transferred to a traditional IRA, in the 
        taxable year in which the airline payment amount was 
        paid to the qualified airline employee by the 
        commercial passenger airline carrier. No amount so 
        transferred to a traditional IRA may be treated as a 
        qualified rollover contribution with respect to a Roth 
        IRA within the 5-taxable year period beginning with the 
        taxable year in which such transfer was made.
            (3) Extension of time to file claim for refund.--A 
        qualified airline employee who excludes an amount from 
        gross income in a prior taxable year under paragraph 
        (1) or (2) may reflect such exclusion in a claim for 
        refund filed within the period of limitation under 
        section 6511(a) of such Code (or, if later, April 15, 
        2013).
            (4) Overall limitation on amounts transferred to 
        traditional iras.--
                    (A) In general.--The aggregate amount of 
                airline payment amounts which may be 
                transferred to 1 or more traditional IRAs under 
                paragraphs (1) and (2) with respect to any 
                qualified employee for any taxable year shall 
                not exceed the excess (if any) of--
                            (i) 90 percent of the aggregate 
                        airline payment amounts received by the 
                        qualified airline employee during the 
                        taxable year and all preceding taxable 
                        years, over
                            (ii) the aggregate amount of such 
                        transfers to which paragraphs (1) and 
                        (2) applied for all preceding taxable 
                        years.
                    (B) Special rules.--For purposes of 
                applying the limitation under subparagraph 
                (A)--
                            (i) any airline payment amount 
                        received by the surviving spouse of any 
                        qualified employee, and any amount 
                        transferred to a traditional IRA by 
                        such spouse under subsection (d), shall 
                        be treated as an amount received or 
                        transferred by the qualified employee, 
                        and
                            (ii) any amount transferred to a 
                        traditional IRA which is attributable 
                        to net income described in paragraph 
                        (2) shall not be taken into account.
            (5) Covered executives not eligible to make 
        transfers.--Paragraphs (1) and (2) shall not apply to 
        any transfer by a qualified airline employee (or any 
        transfer authorized under subsection (d) by a surviving 
        spouse of the qualified airline employee) if at any 
        time during the taxable year of the transfer or any 
        preceding taxable year the qualified airline employee 
        held a position described in subparagraph (A) or (B) of 
        section 162(m)(3) with the commercial passenger airline 
        carrier from whom the airline payment amount was 
        received.
    (b) Treatment of Airline Payment Amounts and Transfers for 
Employment Taxes.--For purposes of chapter 21 of the Internal 
Revenue Code of 1986 and section 209 of the Social Security 
Act, an airline payment amount shall not fail to be treated as 
a payment of wages by the commercial passenger airline carrier 
to the qualified airline employee in the taxable year of 
payment because such amount is excluded from the qualified 
airline employee's gross income under subsection (a).
    (c) Definitions and Special Rules.--For purposes of this 
section--
            (1) Airline payment amount.--
                    (A) In general.--The term ``airline payment 
                amount'' means any payment of any money or 
                other property which is payable by a commercial 
                passenger airline carrier to a qualified 
                airline employee--
                            (i) under the approval of an order 
                        of a Federal bankruptcy court in a case 
                        filed after September 11, 2001, and 
                        before January 1, 2007, and
                            (ii) in respect of the qualified 
                        airline employee's interest in a 
                        bankruptcy claim against the carrier, 
                        any note of the carrier (or amount paid 
                        in lieu of a note being issued), or any 
                        other fixed obligation of the carrier 
                        to pay a lump sum amount.
                The amount of such payment shall be determined 
                without regard to any requirement to deduct and 
                withhold tax from such payment under sections 
                3102(a) of the Internal Revenue Code of 1986 
                and 3402(a) of such Code.
                    (B) Exception.--An airline payment amount 
                shall not include any amount payable on the 
                basis of the carrier's future earnings or 
                profits.
            (2) Qualified airline employee.--The term 
        ``qualified airline employee'' means an employee or 
        former employee of a commercial passenger airline 
        carrier who was a participant in a defined benefit plan 
        maintained by the carrier which--
                    (A) is a plan described in section 401(a) 
                of the Internal Revenue Code of 1986 which 
                includes a trust exempt from tax under section 
                501(a) of such Code, and
                    (B) was terminated or became subject to the 
                restrictions contained in paragraphs (2) and 
                (3) of section 402(b) of the Pension Protection 
                Act of 2006.
            (3) Traditional ira.--The term ``traditional IRA'' 
        means an individual retirement plan (as defined in 
        section 7701(a)(37) of the Internal Revenue Code of 
        1986) which is not a Roth IRA.
            (4) Roth ira.--The term ``Roth IRA'' has the 
        meaning given such term by section 408A(b) of such 
        Code.
    (d) Surviving Spouse.--If a qualified airline employee died 
after receiving an airline payment amount, or if an airline 
payment amount was paid to the surviving spouse of a qualified 
airline employee in respect of the qualified airline employee, 
the surviving spouse of the qualified airline employee may take 
all actions permitted under section 125 of the Worker, Retiree 
and Employer Recovery Act of 2008, or under this section, to 
the same extent that the qualified airline employee could have 
done had the qualified airline employee survived.
    (e) Effective Date.--This section shall apply to transfers 
made after the date of the enactment of this Act with respect 
to airline payment amounts paid before, on, or after such date.

SEC. 1107. TERMINATION OF EXEMPTION FOR SMALL JET AIRCRAFT ON 
                    NONESTABLISHED LINES.

    (a) In General.--The first sentence of section 4281 is 
amended by inserting ``or when such aircraft is a jet 
aircraft'' after ``an established line''.
    (b) Effective Date.--The amendment made by this section 
shall apply to taxable transportation provided after March 31, 
2012.

SEC. 1108. MODIFICATION OF CONTROL DEFINITION FOR PURPOSES OF SECTION 
                    249.

    (a) In General.--Section 249(a) is amended by striking ``, 
or a corporation in control of, or controlled by,'' and 
inserting ``, or a corporation in the same parent-subsidiary 
controlled group (within the meaning of section 1563(a)(1) 
as''.
    (b) Conforming Amendment.--Section 249(b) is amended--
            (1) by striking all that precedes ``is the issue 
        price'' and inserting:
    ``(b) Adjusted Issue Price.--For purposes of subsection 
(a), the adjusted issue price'', and
            (2) by striking paragraph (2).
    (c) Effective Date.--The amendments made by this section 
shall apply to repurchases after the date of the enactment of 
this Act.

     TITLE XII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO-ACT OF 2010

SEC. 1201. COMPLIANCE PROVISION.

    The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
be determined by reference to the latest statement titled 
``Budgetary Effects of PAYGO Legislation'' for this Act, 
jointly submitted for printing in the Congressional Record by 
the Chairmen of the House and Senate Budget Committees, 
provided that such statement has been submitted prior to the 
vote on passage in the House acting first on this conference 
report or amendment between the Houses.
      And the Senate agree to the same.
                From the Committee on Transportation and 
                Infrastructure, for consideration of the House 
                bill and the Senate amendment, and 
                modifications committed to conference:
                                   John L. Mica,
                                   Thomas E. Petri,
                                   John J. Duncan, Jr.,
                                   Sam Graves,
                                   Bill Shuster,
                                   Jean Schmidt,
                                   Chip Cravaack,
                                   Nick J. Rahall II,
                                   Peter A. DeFazio,
                                   Jerry F. Costello,
                                   Leonard L. Boswell,
                                   Russ Carnahan,
                From the Committee on Science, Space, and 
                Technology, for consideration of sections 102, 
                105, 201, 202, 204, 208, 209, 212, 220, 321, 
                324, 326, 812, title X, and title XIII of the 
                House bill and sections 102, 103, 106, 216, 
                301, 302, 309, 320, 327, title VI, and section 
                732 of the Senate amendment, and modifications 
                committed to conference:
                                   Ralph M. Hall,
                                   Steven M. Palazzo,
                                   Eddie Bernice Johnson,
                From the Committee on Ways and Means, for 
                consideration of title XI of the House bill and 
                titles VIII and XI of the Senate amendment, and 
                modifications committed to conference:
                                   Dave Camp,
                                   Patrick J. Tiberi,
                                   Sander M. Levin,
                                 Managers on the Part of the House.

                                   John D. Rockefeller IV,
                                   Barbara Boxer,
                                   Bill Nelson,
                                   Maria Cantwell,
                                   Kay Bailey Hutchison,
                                   Johnny Isakson,
                From the Committee on Finance:
                                   Max Baucus,
                                Managers on the Part of the Senate.

       Joint Explanatory Statement of the Committee of Conference

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 658), to amend 
title 49, United States Code, to authorize appropriations for 
the Federal Aviation Administration for fiscal years 2011 
through 2014, to streamline programs, create efficiencies, 
reduce waste, and improve aviation safety and capacity, to 
provide stable funding for the national aviation system, and 
for other purposes, submit the following joint statement to the 
House and the Senate in explanation of the effect of the action 
agreed upon by the managers and recommended in the accompanying 
conference report:
      The Senate amendment struck all of the House bill after 
the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The committee of 
conference met on January 31, 2012 (the Senate chairing), and 
resolved their differences. The differences between the House 
bill, the Senate amendment, and the substitute agreed to in 
conference are noted below, except for clerical corrections, 
conforming changes made necessary by agreements reached by the 
conferees, and minor drafting and clarifying changes.

                                 TITLE

House Bill
      ``FAA Reauthorization and Reform Act of 2011''.
Senate Bill
      ``FAA Air Transportation, Modernization, and Safety 
Improvement Act''.
Conference Substitute
      ``FAA Modernization and Reform Act of 2012''

               AMENDMENTS TO TITLE 49, UNITED STATES CODE

                                  TERM

House Bill
      2011 through 2014.
Senate Bill
      2010 through 2011.
Conference Substitute
      2012 through 2015.

                        TITLE I--AUTHORIZATIONS

                  AUTHORIZATION LEVELS ($ IN BILLIONS)

H101(a),102,103/S101,102,103,104

House bill
      Section 101(a) authorizes the Federal Aviation 
Administration's (FAA) Airport Improvement Program (AIP) 
account at: $3.176 billion for Fiscal Year (FY) 2011; $3 
billion for FY 2012; and $3 billion for FY 2013; and $3 billion 
for FY 2014. It prohibits the use of AIP funds for carrying out 
the Airport Cooperative Research Program or the Airports 
Technology Research Program and extends the obligational 
authority to September 30, 2014. It makes funds obligated in 
subsection (a) available until they are spent.
      Section 102 authorizes the FAA's Facilities and Equipment 
(F&E) account at: $2.7 billion for FY 2011 and $2.6 billion for 
FYs 2012 through FY 2014. It removes references to the 
following accounts: enhanced safety and security for aircraft 
operations in the Gulf of Mexico; operational benefits of wake 
vortex advisory system; ground based precision navigational 
aids; ground based precision navigation; standby power 
efficiency program; and a pilot program to provide incentives 
for development of new technologies.
      Section 103 authorizes the FAA's Operations account at: 
$9.403 billion for FY 2011 and $9.168 billion for FYs 2012 
through FY 2014. It authorizes expenditures necessary for: the 
Air Traffic Control Collegiate Training Initiative; completion 
of Alaska aviation safety project regarding 3-D mapping of main 
aviation corridors; and carrying out the Aviation Safety 
Reporting System. The FAA's expenditure authority is also 
extended through 2014. The Secretary of Transportation is 
permitted to transfer funds from non-safety related programs if 
appropriated funds are insufficient to meet salary, operations, 
and maintenance expenses.
Senate bill
      Section 101 authorizes the FAA's Operations account at 
$9.336 billion in FY 2010 and $9.62 billion in FY 2011.
      Section 102 authorizes the FAA's Facilities and Equipment 
account at $3.5 billion in FY 2010, of which $500 million would 
be derived from the newly-created Air Traffic System 
Modernization Account (ATSMA); and $3.6 billion in FY 2011, of 
which $500 million would be derived from the new account 
established by this section.
      Section 103 authorizes the FAA's Research, Engineering 
and Development (R,E,&D) account at $200 million in FY 2010 and 
$206 million in FY 2011. It replaces current statutory language 
in--Sec. 48102(a) (which has a breakdown of how the money 
should be allotted) with the authorization levels only and 
strikes several paragraphs for the R,E,&D account. It requires 
the FAA to establish a grant program to promote aviation 
research at undergraduate and technical colleges, including 
schools serving Historically Black Colleges and Universities 
(HBCU) students, Hispanic, Native Alaskan and Hawaiian 
populations.
      Section 104 authorizes the FAA's AIP account at $4.0 
billion for FY 2010 and $4.1 billion in FY 2011.
Conference Substitute
      The conference committee agreed to the following funding 
levels:
      Section 101 authorizes the FAA's Airport Improvement 
Program (AIP) account at $3.35 billion for FY 2012 through FY 
2015.
      Section 102 authorizes the FAA's Facilities and Equipment 
(F&E) account at: $2.731 billion for FY 2012, $2.715 for FY 
2013, $2.730 billion for FY 2014 and FY 2015.
      Section 103 authorizes the FAA's Operations account at: 
$9.653 billion for FY 2012, $9.539 billion for FY 2013, $9.596 
billion for FY 2014, and $9.653 billion for FY 2015.
      Section 901 authorizes the FAA's Research Engineering and 
Development (R,E,&D) account at $168 million annually for FY 
2012 through 2015.

                      FUNDING OF AVIATION PROGRAMS

H104/S105

House bill
      Section 104 modifies the formula that determines the 
amount made available from the Airport and Airways Trust Fund 
(Trust Fund) each year to fund the FAA. The section requires 
the Trust Fund support for aviation programs in FY 2011 be 
equal to 90 percent of the estimated Trust Fund revenue (taxes 
plus interest). In FY 2012, FY 2013 and FY 2014, the Trust Fund 
appropriation should equal the sum of 90 percent of the 
estimated Trust Fund revenue, plus the difference between 
actual revenue and the Trust Fund appropriation in the second 
preceding fiscal year. It extends the authorization of 
appropriations for the general fund to 2014 and makes technical 
corrections by striking ``level'' and inserting ``estimated 
level'' and by striking ``level of receipts plus interest'' and 
replacing it with ``estimated level of receipts plus 
interest.'' Lastly, it amends enforcement of guarantees by 
inserting 2014 in place of 2007.
Senate bill
      Section 105 extends the budgetary treatment for the FAA's 
accounts through FY 2011.
Conference Substitute
      House bill modified by moving the dates in the bill 
forward by one year.

       DELINEATION OF NEXT GENERATION AIR TRANSPORTATION SYSTEMS

H105/S106
House bill
      Section 105 requires the list of capital projects that 
are part of the Next Generation Air Transportation System 
(NextGen) system be included in the Airway Capital Investment 
Plan.
Senate bill
      Section 106 is a similar provision.
Conference Substitute
      House bill.

  FUNDING FOR ADMINISTRATION EXPENSES FOR AIRPORT IMPROVEMENT PROGRAM

H106/S107(a)(b)

House bill
      Section 106 authorizes funds for the Airport Improvement 
Program (AIP) administrative expenses (i.e., AIP approval and 
oversight, national airport system planning, airport standards 
development and enforcement, airport certification, and 
airport-related environmental activities).
Senate bill
      Section 107(a)(b) authorizes the administrative expenses 
for the FAA's airports program through FY 2011.
Conference Substitute
      No provision.

                       PASSENGER FACILITY CHARGES

H111/S201(b)

House bill
      Section 111 defines Passenger Facility Charge (PFC), 
makes permanent a pilot program that allows the collection of 
PFCs at non-hub airports, and makes a technical correction 
changing references of PFCs from ``fees'' to ``charges.''
Senate bill
      Section 201(b) makes a technical correction changing 
references of PFC from ``fees'' to ``charges''.
Conference Substitute
      House bill.

                   AIRPORT ACCESS FLEXIBILITY PROGRAM

H112/S201(a)

House bill
      Section 112 establishes a pilot program, at no more than 
five airports, for off-airport intermodal ground access 
projects related to movement of airport passengers/property, 
subject to certain conditions.
Senate bill
      Section 201(a) streamlines the administrative 
requirements associated with PFCs, while retaining audit 
controls and FAA project and expenditure oversight. It provides 
requirements on any airport authority wishing to increase its 
PFC, or wishing to impose a PFC to finance an intermodal ground 
facility.
Conference Substitute
      No provision.

           GAO STUDY OF ALTERNATIVE MEANS OF COLLECTING PFCS

H114(a),113/S202

House bill
      Section 114(a) defines ``qualifications-based selection'' 
(QBS) as a competitive procurement process under which firms 
compete for capital improvement projects on the basis of 
qualifications, past experience, and specific expertise.
      Section 113 instructs the U.S. Government Accountability 
Office (GAO) to conduct a study of alternative means of PFC 
collection to allow such charges be collected without being 
included in the ticket price.
Senate bill
      Section 202 requires a pilot program for direct 
collection of PFCs via the internet or other means, except 
through air carriers, under which there would be no cap on the 
PFC. The GAO is directed to conduct a study of potential 
alternative means of PFC collection.
Conference Substitute
      House bill modified by dropping definition of QBS.

                     QUALIFICATIONS-BASED SELECTION

H114(b)/S--

House bill
      Section 114(b) expresses the sense of Congress that 
airports should consider the use of qualifications-based 
selection in carrying out capital improvement projects using 
PFCs collected with the goal of serving the needs of all 
stakeholders.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

        REFORM AND STREAMLINING OF PFC AUTHORITY AND COLLECTION

H--/S201(a)

House bill
      No similar provision.
Senate bill
      Section 201(a) eliminates the existing statutory 
requirement that PFC funding may only be used for airport 
capital projects that preserve or enhance airport capacity, 
safety, or security, or reduce noise. It expedites the PFC 
application process by directing collection to begin upon 
filing of annual reports containing required information and 
after consultation with carriers and public notice requirements 
instead of waiting for FAA approval of each PFC application. 
This section establishes a process for filing objections to a 
PFC project, and allows the Secretary of Transportation to 
investigate excessive PFC collections or for revenue not being 
used per law. It provides exceptions to new processes used for 
intermodal ground access projects and for an increase in PFC, 
both of which require prior FAA approval before collection.
Conference Substitute
      House bill.

     TECHNICAL AMENDMENTS AND PFC PILOT PROGRAM AT NON-HUB AIRPORTS

H111(b)/S201(a)
House bill
      Section 111(b) makes the pilot program for collecting 
PFCs at non-hub airports permanent.
Senate bill
      Section 201(a) is a similar provision with minor 
technical differences.
Conference Substitute
      House bill.

             PFC ELIGIBILITY FOR BICYCLE STORAGE FACILITIES

H--/S207(b)

House bill
      No provision.
Senate bill
      Section 207(b) prohibits PFCs from being used to 
construct bicycle storage facilities.
Conference Substitute
      House bill.

                         UPDATE ON OVERFLIGHTS

H121/S706

House bill
      Section 121 requires the FAA to guarantee existing 
overflight fees are reasonably related to agency costs for 
providing air traffic services, and requires the FAA to adjust 
the fees and begin collection of the appropriate amount. The 
FAA is authorized to periodically modify the fee based on the 
cost of providing such service.
Senate bill
      Section 706 is similar to the House provision, but it 
directs the FAA to establish an Aviation Rulemaking Committee 
(ARC) to review overflight fees which the FAA must consult with 
before making any adjustments to the fees or collection is 
made.
Conference Substitute
      House bill modified by removing language creating a 
special rule for FYs 2011 through 2015 which specified that 
``in each of fiscal years 2011 through 2015, section 45303(c) 
shall not apply to any increase in fees collected pursuant to a 
final rule described in paragraph (4)'' and by removing 
language to issue a final rule with respect to the NPRM 
published in the Federal Register on September 28, 2010.

                           REGISTRATION FEES

H122/S--

House bill
      Section 122 requires the FAA to establish fees for 
registration, certification and related services. It specifies 
amounts for such fees in the provision for eleven services, and 
requires the FAA to periodically adjust the fees when cost data 
reveal that the cost of providing the service changes. Lastly, 
it specifies that fees should be treated as offsetting 
collections subject to appropriations.
Senate bill
      No similar provision.
Conference Substitute
      House bill, but with no amounts specified for the fees.

                          AIRPORT MASTER PLANS

H131/S--

House bill
      Section 131 requires that airport master plans and 
systems include in their goals a requirement to consider 
passenger convenience, airport ground access, and access to 
airport facilities.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                  AEROTROPOLIS TRANSPORTATION SYSTEMS

H132/S3--

House bill
      Section 132 directs the Secretary of Transportation to 
encourage development of aerotropolis transportation systems, 
which are planned and coordinated multimodal freight and 
passenger transportation networks that provide efficient, cost-
effective, sustainable, and intermodal connectivity to a 
defined region of economic significance centered around a major 
airport, as determined by the Secretary.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

             AIRPORT IMPROVEMENT PROGRAM (AIP) DEFINITIONS

H133/S208(j),215,714(a)

House bill
      Section 133(a)(1) broadens eligibility for AIP spending 
to include firefighting and revenue equipment at an airport 
that serves scheduled passenger operations of air carrier 
aircraft designed for more than nine passengers instead of the 
current limit of 20.
      Section 133(a)(2) allows AIP funds to be used for glycol 
recovery vehicles.
      Section 133(a)(3) permits AIP funds to be used for mobile 
refueler parking within a fuel farm at a non-primary airport, 
if required by an Environmental Protection Agency (EPA) rule, 
terminal development costs, air conditioning/heating/
electricity from terminal facilities, and equipment for parked 
aircraft to reduce energy consumption.
      Section 133(b) amends the definition of airport planning 
to include an environmental management system and recycling.
      Section 133(c) defines ``general aviation airport.''
      Section 133(d) defines ``revenue producing aeronautical 
support facilities,'' which allows non-primary airports to use 
their entitlements to build or rehabilitate new facilities that 
can help generate revenue.
      Section 133(e) redefines ``terminal development'' to 
include development of an airport passenger terminal building, 
including gates and access roads and walkways.
Senate bill
      Section 208(j) is the same provision as House section 
133(a)(3).
      Section 215 is the same provision as House section 
133(a)(2).
      No similar provision.
      No similar provision.
      Section 714(a) is the same provision as House section 
133(b).
      No similar provision.
      No similar provision.
Conference Substitute
      House bill.

                      RECYCLING PLANS FOR AIRPORTS

H134/S714(b)

House bill
      Section 134 requires airport master plans to: address the 
feasibility of solid waste recycling at an airport, minimizing 
the generation of waste, operation and maintenance 
requirements, the review of waste management contracts, and the 
potential for cost savings or the generation of revenue.
Senate bill
      Section 714(b) is a similar provision, but includes 
additional requirements for master plans.
Conference Substitute
      House bill.

                     CONTENTS OF COMPETITION PLANS

H135/S--

House bill
      Section 135 removes requirements for ``patterns of air 
services'' and ``airfare levels (as compiled by DOT) compared 
to other large airports'' from the requirements of a 
competition plan for PFC charges.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                            GRANT ASSURANCES

H136/S203

House bill
      Section 136(a),(b) permits the Secretary of 
Transportation to allow grants to be used for relocating or 
replacing existing airport facilities.
      Section 136(b)(1) revises requirements on acquiring lands 
to permit an airport to keep any funds obtained from the sale 
of lands acquired for noise compatibility purposes and reinvest 
those funds in the airport or transfer those funds to another 
airport consistent with the statute. It removes a requirement 
to return the proportion equal to the government share in 
acquiring the land to the Secretary.
      Section 136(b)(2) sets the priorities which apply to the 
Secretary's decision to approve reinvestment or transfer of 
proceeds from the sale of land acquired for noise 
compatibility. Priorities are: 1) reinvestments in an approved 
noise compatibility project; 2) reinvestment in an approved 
project that is eligible for funding; 3) reinvestment in an 
approved airport development project that is eligible for 
funding under Sec. 47114, 47115, or 47117; 4) transfer to a 
sponsor of another public airport to be reinvested in an 
approved noise compatibility project; and 5) deposit into the 
Airport and Airway Trust Fund.
      Section 136(c) makes a technical correction to 
47107(e)(2)(iii) by deleting ``the Fund'' and inserting ``the 
Airport and Airway Trust Fund established under section 9502 of 
the Internal Revenue Code of 1986.''
      Section 136(d) makes the Competition Disclosure 
Requirement pilot program permanent. No similar provision.
Senate bill
      Section 203 is a similar provision.
      Section 203 is similar, but allows airports that receive 
improvement grants for the purchase of land to lease the land 
and develop the land in a manner compatible with noise 
buffering purposes.
      Section 203 adds that a lease by an airport owner or 
operator of land acquired for a noise compatibility purpose 
using an improvement grant will not be considered a disposal, 
and allows revenues from the lease to be used for ongoing 
airport operational and capital purposes.
      No similar provision.
      No similar provision.
      Section 203 adds the phrase ``serving as noise buffer 
land'' to clarify that such land is one of the land 
acquisitions subject to disposal at the earliest practicable 
time after it is no longer needed for the intended noise 
compatibility purpose.
Conference Substitute
      House bill with the language from the Senate bill section 
203 related to ``serving as noise buffer land'' added.

   AGREEMENTS GRANTING THROUGH-THE-FENCE ACCESS TO GENERAL AVIATION 
                                AIRPORTS

H137/S--

House bill
      Section 137 requires that the sponsor of a general 
aviation airport will not be in violation of a grant assurance 
as a condition for the receipt of federal funds solely because 
the sponsor entered into an agreement to allow a person, who 
owns residential real property adjacent to the airport, access 
to the airfield of the airport.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to include language in the agreement 
between an airport sponsor and a property owner prohibiting any 
aircraft refueling from occurring on that property, and 
includes a definition of ``general aviation airport''.

                   GOVERNMENT SHARE OF PROJECT COSTS

H138/S204,207

House bill
      Section 138 adds a special rule for transition from small 
hub to medium hub which limits the government share of funding 
to 90 percent for the first two years following the change in 
status. The government share is set at 95 percent for a project 
at an airport that is receiving subsidized air service and is 
located in an area that meets one or more of the criteria for 
economically depressed communities established by the Secretary 
of Commerce.
Senate bill
      Section 204(a) establishes a special rule to allow for 
small hub airports that have increased operations and therefore 
are being reclassified as medium hub airports to retain their 
eligibility for two years at up to a 95 percent government 
share of projects costs.
      Section 204(b) extends the project cost for transitioning 
Airport Improvement Project (AIP) projects through FY 2011.
      Section 207 sets the government share at 95 percent for 
certain projects at small airports if it is funded by a grant 
issued to, and administered, by a State under the State block 
grant program or for any project at an airport other than a 
primary airport having at least 0.25 percent of the total 
number of passenger boardings at all commercial service 
airports.
Conference Substitute
      House bill.

                        ALLOWABLE PROJECT COSTS

H139/S214,205

House bill
      Section 139(a) amends allowable AIP project costs to 
include costs for airport development incurred prior to the 
execution of the grant agreement if: 1) the cost is incurred in 
the same fiscal year as the execution of the grant agreement; 
2) the cost was incurred before execution due to a short 
construction season in the vicinity of the airport; 3) the cost 
is in accordance with the approved airport layout plan; 4) the 
sponsor notifies the Secretary of Transportation before 
commencing work; 5) the sponsor has an alternative funding 
source available to fund the project; and/or 6) the sponsor's 
decision to proceed with the work does not affect the priority 
assigned to the project by the Secretary for the allocation of 
discretionary funds.
      Section 139(b) amends allowable AIP project costs to 
include costs incurred to improve the efficiency of an airport 
building (i.e., a measure designed to meet one or more of the 
criteria for being considered a high-performance green building 
as set forth under the Energy Independence and Security Act of 
2007), and: 1) the measure is for a project for airport 
development; 2) the measure is for an airport building that is 
otherwise eligible for construction assistance; and/or 3) if 
the measure results in an increase in initial project costs, 
the increase is justified by expected savings over the life 
cycle of the project.
      Section 139(c) provides the Secretary discretion in 
determining that the costs of relocating or replacing and 
airport-owned facility are allowable, to those instances in 
which: 1) the Government's share will be paid with funds 
apportioned to the airport sponsor; 2) the Secretary determines 
that the relocation or replacement is required due to a change 
in the Secretary's design standards; and 3) the Secretary 
determines the change is beyond the control of the sponsor.
      Section 139(d) clarifies that the Secretary may determine 
that the cost of constructing revenue-producing aeronautical 
support facilities at non-primary airports is allowable.
      No similar provision.
Senate bill
      Section 214 is a similar provision to House section 
142(a), but requires the Secretary to consider the short 
construction season in some areas when selecting projects for 
AIP discretionary funding.
      No similar provision.
      Section 205 is a similar provision to House section 
139(c).
      No similar provision.
      Section 205 includes a requirement for the Administrator 
to analyze the conclusions of ongoing studies with commercially 
available bird radar systems within 180 days of enactment and, 
if it is determined that the systems have no negative impact on 
existing navigational aids and that the expenditure is 
appropriate, shall allow purchase of bird-detecting radar 
systems as an allowable airport development project cost. If 
the Administrator concludes that such radar systems will not 
improve or will negatively impact airport safety, the 
Administrator shall issue a report explaining that 
determination.
Conference Substitute
      House bill with the inclusion of Senate language on bird 
radar systems and short construction season.

                          VETERANS' PREFERENCE

H140/S208(b)

House bill
      Section 140 amends the definition of ``Vietnam-era 
veteran'' and adds veterans from the Afghanistan/Iraq conflict 
and Persian Gulf War to the definition of those veterans 
eligible for employment preference on Airport Improvement 
Program (AIP) projects. It adds a provision requiring that a 
contract involving labor for carrying out an airport 
development project under a grant agreement include a 
preference for the use of small business concerns owned and 
controlled by disabled veterans.
Senate bill
      Section 208(b) is a similar provision.
Conference Substitute
      House bill.

           MINORITY AND DISADVANTAGED BUSINESS PARTICIPATION

H141,822/S715,703

House bill
      Section 141 requires the Secretary to establish, within a 
year of enactment, a mandatory training program for certain 
airport agents or officials on certifying whether a small 
business concern qualifies as a small business concern owned 
and controlled by socially and economically disadvantaged 
individuals under the Disadvantaged Business Enterprise (DBE) 
Program.
      Section 822 requires the Inspector General of the 
Department of Transportation (DOT IG) to report on the number 
of new small business concerns owned and controlled by socially 
and economically disadvantaged individuals, including those 
owned by veterans, that participated in the programs and 
activities funded using the amounts made available under this 
Act.
      No similar provision.
      No similar provision.
Senate bill
      Section 715(c) is a similar provision to House section 
141.
      Section 703 authorizes the appointment of three staff to 
implement the training program.
      Section 715(a), (b), (d), (e), (f) adjusts the personal 
net worth cap for individuals participating in the DBE program.
      Section 715(g) directs the Secretary to create a program 
to eliminate barriers to small business participation in 
contract and issue a final rule within one year of enactment.
Conference Substitute
      The conference committee agreed to a modified and merged 
version of House and Senate bills, including findings of the 
Senate bill, with clarifications, recounting evidence of 
discrimination and concluding that a compelling need exists for 
continuation of the airport disadvantaged business enterprise 
(DBE) program and the airport concessions DBE program.

                      SPECIAL APPORTIONMENT RULES

H142/S208(i), (h)

House bill
      Section 142(a) gives the Secretary of Transportation 
authority to apportion to an airport sponsor in a fiscal year 
an amount equal to the minimum apportionment available to the 
airport sponsor in the previous fiscal year, if the airport 
received scheduled or unscheduled air service from a large 
certificated carrier in the calendar year used to calculate the 
apportionment, and the airport had more than 10,000 passenger 
boardings in the calendar year used to calculate the 
apportionment.
      Section 142(b) continues a special apportionment for 
airports that remain affected by the decrease in passengers 
following the terrorist attacks of September 11, 2001, through 
2012.
      No similar provision.
Senate bill
      Section 208(i) is a similar provision to House section 
142(a) and (b).
      Section 208(h) amends the special apportionment 
categories by change the special apportionment from ``thirty 
five percent'' to a fixed amount of ``$300 million'' annually 
for grants for various airport noise, compatible land use, and 
Clean Air Act compliance projects. It adds certain water 
quality mitigation projects to those on which such funds may be 
expended.
Conference Substitute
      House Bill, section 142 with modified dates changed from 
``2011 and 2012'' to ``2012 and 2013'', and Senate section 
208(h) modified with the substitution of ``35 percent, but not 
more than $300 million''.

              UNITED STATES TERRITORIES MINIMUM GUARANTEE

H143/S--

House bill
      Section 143 directs the Secretary of Transportation to 
apportion AIP amounts for airports in Puerto Rico, does not 
prohibit the Secretary from making project grants for airports 
in Puerto Rico from discretionary funds.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to include language that addresses 
Puerto Rico and other U.S. territories.

                             APPORTIONMENT

H144/S--

House bill
      Section 144 resets the apportionment trigger from $3.2 
billion to $3 billion.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

                        REDUCING APPORTIONMENTS

H145/S--

House bill
      Section 145 addresses inequitable application of 
apportionment fees charged to passengers in the state of 
Hawaii.
Senate bill
      No similar provision.
Conference Substitute

      House bill.

                MARSHALL ISLANDS, MICRONESIA, AND PALAU

H146/S704(a)
House bill
      Section 146 makes the Marshall Islands, Micronesia and 
Palau eligible for AIP discretionary grants and funding from 
the Small Airport Fund.
Senate bill
      Section 704(a) is a similar provision.
Conference Substitute
      House bill.

            DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS

H147/S220, 212

House bill
      Current law allows the Secretary of Transportation to 
designate current or former military airports eligible for 
grants under the Military Airport Program (MAP). Section 147(a) 
adds to the items that must be considered to approve a grant 
the requirement that it preserves or enhances minimum airfield 
infrastructure facilities at former military airports to 
support emergency diversionary operations for transoceanic 
flights in locations in U.S. jurisdiction or control, and where 
there is a lack of airports within the distance required by 
regulations.
      Section 147(b) allows up to three general aviation 
airports to participate in the FAA's Military Airport Program.
      Section 147(c) makes current or former military airports 
eligible to be considered for AIP funding if that airport is 
found to be critical to the safety of trans-oceanic air 
traffic.
Senate bill
      No similar provision.
      Section 220 is a similar provision to House section 
147(b) and, however it allows a total of three general aviation 
airports to participate in the Military Airport Program.
      Section 212 is a similar provision to House section 
147(c).
Conference Substitute
      House bill modified.

                         CONTRACT TOWER PROGRAM

H148/S432

House bill
      Section 148(a) directs the Secretary of Transportation to 
extend the low activity (Visual Flight Rules) level I air 
traffic control tower (ATC) contract program to other low-
activity towers meeting the requirements set forth by the 
Secretary of Transportation where the airport operator has 
requested to participate in the program.
      Section 148(a) also adds a special rule which alleviates 
the responsibility of the airport sponsor or State or local 
government to paying the portion of the costs that exceed the 
benefits for a period of 18 months after the Secretary 
determines that a level I tower operating under this program 
has a benefit to cost ratio of less than 1.0.
      Section 148(b) caps the maximum allowable cost share for 
an airport with fewer than 50,000 annual passenger enplanements 
at 20 percent of the cost of operating an ATC tower under the 
contract tower program, and sunsets this requirement on 
September 30, 2014.
      Section 148(b) also permits the Secretary to use excess 
funds from the contract tower program intended for level I 
towers to fund activities for non-approach contract towers.
      Section 148(c) increases the maximum amount of funds that 
can be expended in carrying out the Contract Tower Program for 
non-approach contract towers at not more than $8.5 million for 
each of FYs 2011 through 2014.
      Section 148(d) increases the limitation on the amount of 
the federal share of the cost of construction of a non-approach 
control tower from $1.5 million to $2 million.
      Section 148(e) requires the establishment of uniform 
safety standards and requirements for safety assessments of ATC 
towers that receive funding.
Senate bill
      Section 432(b) is the same provision as House section 
148(b) but caps the maximum allowable local share at 20 
percent.
      Section 432(a) is the same provision as House section 
148(a).
      Section 432(c) is a similar provision to House section 
148(c), but it specifies that not more than $9.5 million in FY 
2010 and not more than $10 million in FY 2011 can be used.
      Section 432(d) is the same provision as House section 
148(d).
      Section 432(e) is the same provision as House section 
148(e).
Conference Substitute
      House bill modified by adjusting the authorization 
levels, and by deleting: (1) language capping the local cost 
share at 20 percent: and (2) provisions requiring the Secretary 
of Transportation to expand the Contract Tower Program. Under 
the agreement (in the modified section), the Secretary retains 
the authority to expand the program.

             RESOLUTION OF DISPUTES CONCERNING AIRPORT FEES

H149/S431

House bill
      Section 149 updates current law that addresses the 
resolution of disputes concerning airport fees by the Secretary 
of Transportation to include foreign air carriers in payment by 
airports under protest.
Senate bill
      Section 431 is the same provision.
Conference Substitute

      House bill.

               SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR

H150/S206

House bill
      Section 150(a) exempts funds from the sale of an airport 
to a public sponsor from use restrictions. This exemption 
applies where the Secretary of Transportation approves the 
sale, federal grants are provided for any portion of the public 
sponsor's acquisition of the airport, and certain amounts of 
remaining airport improvement grants are repaid to the 
Secretary.
      Section 150(a) also specifies that recovery of grant 
funds are treated as recovery of prior year obligations.
      Section 150(b) specifies that this section is applicable 
to grants issued on or after October 1, 1996.
Senate bill
      Section 206 is a similar provision to House section 
150(a), but it specifies that proceeds are repaid to the 
Airport and Airway Trust Fund for airport acquisitions.
      No similar provision.
      Section 206 is an identical provision to House section 
150(b).
Conference Substitute
      House bill.

   REPEAL OF CERTAIN LIMITATIONS ON METROPOLITAN WASHINGTON AIRPORTS 
                            AUTHORITY (MWAA)

H151/S718

House bill
      Section 151 repeals the limitations on Metropolitan 
Washington Aviation Authority to apply for Airport Improvement 
Program grants and collect Passenger Facility Charges.
Senate bill
      Section 718 is a similar provision.
Conference Substitute
      House bill.

                         MIDWAY ISLAND AIRPORT

H152/S704(b)

House bill
      Section 152 provides a four-year extension for the 
Secretary of Transportation to enter into a reimbursable 
agreement with the Secretary of the Interior to provide AIP 
discretionary funds for airport development projects at Midway 
Island Airport through FY 2014.
Senate bill
      Section 704(b) is a similar provision, but the extension 
would expire at the end of the term of the Senate bill in FY 
2011.
Conference Substitute
      House bill.

                        MISCELLANEOUS AMENDMENTS

H153/S208(a)(c)(e)(f)(g)

House bill
      Section 153(a) makes a technical change to requirements 
for the National Plan of Integrated Airport Systems (NPIAS), 
which comprises all commercial service airports, all reliever 
airports, and selected general aviation airports.
      Section 153(b) permits the Secretary of Transportation to 
approve a project for terminal development (including 
multimodal terminal development) in a nonrevenue-producing 
public-use area of a commercial service airport if the sponsor 
certifies that the airport: (1) has all the safety equipment 
required and security equipment required by regulation; (2) 
provides access for passengers to the area of the airport 
boarding or exiting aircraft that are not air carrier aircraft; 
(3) costs are directly related to moving passengers and baggage 
in air commerce within the airport; and (4) meets the terms 
necessary to protect the interest of the government.
      Section 153(b) directs the Secretary to approve as 
allowable costs of terminal development (including multimodal 
terminal development) in a revenue-producing area and 
construction, reconstruction, repair and improvement in a non-
revenue producing parking lot under certain circumstances.
      Section 153(b) prohibits the Secretary from distributing 
more than $20 million from discretionary funds for terminal 
development projects at a non-hub airport or a small hub 
airport that is eligible to receive discretionary funds.
      Section 153(c) makes technical changes to the annual 
reporting requirements by moving the due date to June 1 of each 
year. Also, it removes the first four report requirements and 
replaces them with: (1) a summary of airport development and 
planning completed; (2) a summary of individual grants issued; 
(3) an accounting of discretionary and apportioned funds 
allocated; and (4) the allocation of appropriations.
      Section 153(d) makes a technical correction to the 
emission credits provision.
      Section 153(e) makes a technical correction to section 
Sec. 46301(d)(2).
      Section 153(f) makes a conforming amendment to 
Sec. 40117(a)(3)(B) and 47108(e)(3).
      Section 153(g) makes a technical correction to the 
surplus property authority section.
      Section 153(h) updates the definition of ``Congested 
Airport'' to include the FAA's Airport Capacity Benchmark 
Report of 2004 ``or table 1 of the Federal Aviation 
Administration's most recent airport capability benchmark 
report, as well as the definition of ``Joint Use Airport''.
Senate bill
      Section 208(a) is the same as House section 153(a).
      No similar provision.
      No similar provision.
      No similar provision.
      Section 208(c) is the same as House section 153(c).
      Section 208(e) is the same as House section 153(d).
      No similar provision.
      Section 208(f) is a similar to House section 153(g).
      Section 208(g) is a similar to House section 153(h), but 
changes definition for ``Joint Use Airport''.
Conference Substitute
      House bill.

   EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND USE PLANNING AND 
                PROJECTS BY STATE AND LOCAL GOVERNMENTS

H154/S--

House bill
      Section 154 extends the grant authority for compatible 
land use planning and projects by State and local governments 
until September 30, 2014.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

    PRIORITY REVIEW OF CONSTRUCTION PROJECTS IN COLD WEATHER STATES

H155/S724

House bill
      Section 155 instructs the Administrator to schedule 
reviews of construction projects that are prevented by weather 
from being carried out before May 1 of each year, or as early 
as possible.
Senate bill
      Section 724 directs the Administrator to review, as early 
as possible, proposed airport projects in those states where, 
during a typical calendar year, construction could not begin 
until May 1.
Conference Substitute
      House bill.

      STUDY ON NATIONAL PLAN OF INTEGRATED AIRPORT SYSTEMS (NPIAS)

H156/S--

House bill
      Section 156 requires the Secretary of Transportation to 
study and evaluate the formulation of the National Plan of 
Integrated Airport Systems (NPIAS) and report to Congress on 
the findings and recommended changes for formulating the NPIAS 
and methods to determining the amounts apportioned to airports. 
The study is to address the following: 1) criteria used for 
including airports in the plan; 2) changes in airport capital 
needs as shown in the 2005-2009 and 2007-2011 plans, compared 
with the amounts apportioned or otherwise made available to 
individual airports between 2005 and 2010; 3) a comparison of 
the amounts received by airports under the AIP in airport 
apportionments, State apportionments, and discretionary grants 
during fiscal years with capital needs as reported in the plan; 
4) the effect of transfers of airport apportionments under 
title 49 United States Code (U.S.C.); 5) an analysis on the 
feasibility and advisability of apportioning amounts under 
47114(c)(1) to the sponsor of each primary airport for each 
fiscal year an amount that bears the same ratio to the amount 
subject to the apportionment for FY 2009 as the number of 
passenger boardings at the airport during the prior calendar 
year bears to the aggregate of all passenger boardings at all 
primary airports during that calendar year; 6) a documentation 
and review of the methods used by airports to reach the 10,000 
passenger enplanement threshold; and 7) any other matters 
pertaining to the plan that the Secretary determines 
appropriate.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

TRANSFERS OF TERMINAL AREA AIR NAVIGATION EQUIPMENT TO AIRPORT SPONSORS

H157/S--

House bill
      Section 157 establishes a pilot program to allow the 
Administrator to transfer terminal area air navigation 
equipment to airport sponsors at a specified number of 
airports. The airport sponsors must assure the Administrator 
that the sponsors will operate and maintain the equipment, 
permit inspections by the Administrator, and will replace 
equipment as needed. This transfer will include all rights, 
title and interests of the U.S. to the sponsor at no cost to 
the sponsor.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

                     AIRPORT PRIVATIZATION PROGRAM

H158/S--

House bill
      Section 158(a) amends current law relating to specific 
provisions for issuance of exemptions in connection with a 
transfer of airport operation to a private owner. This section 
authorizes the Secretary of Transportation to expand the number 
of airports from five to ten airports. The Secretary is 
authorized to exempt the selling airport sponsor from the 
revenue diversion prohibition after the Secretary has consulted 
the air carrier serving the primary airport, and in the case of 
non-primary airport, with at least 65 percent of owners of 
aircraft based at that airport (thereby eliminating the 
existing requirement that the selling airport sponsor obtain 
the approval of at least 65 percent of the air carriers serving 
the airport before the revenue diversion prohibition can be 
waived.)
      Section 158(b) removes the requirement that the Secretary 
must ensure that the airport fee imposed on air carriers will 
not increase more than inflation; the percent increase on fees 
to general aviation will not exceed the percentage of fees 
imposed on air carriers; and collective bargaining agreements 
will not be abrogated by sale or lease. It prohibits an airport 
from imposing a fee on a domestic or foreign air carrier for a 
return on investment or recovery of principal with respect to 
consideration paid to public agency for the lease unless the 
air carriers approve.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified by dropping all language except 
language on expansion of the airport privatization program from 
five to ten airports.

                        AIRPORT SECURITY PROGRAM

H--/S208(d)

House bill
      No similar provision.
Senate bill
      Section 208(d) sunsets the Airport Security Program.
Conference Substitute
      House bill.

                           MINIMUM GUARANTEE

H--/S217

House bill
      No similar provision.
Senate bill
      Section 217 amends the Alaska minimum guarantee to permit 
the Secretary of Transportation to apportion to the local 
authority of a U.S. Territory the difference between the amount 
apportioned to the territory and 1.5 percent of the total 
amount apportioned to all airports under subsections (c) and 
(d) of 47144.
Conference Substitute
      Senate bill provision incorporated in the section 
entitled ``United States territories minimum guarantee''.

                   RESEARCH IMPROVEMENT FOR AIRCRAFT

H--/S216

House bill
      No similar provision.
Senate bill
      Section 216 expands the type of research that the 
Administrator may conduct or supervise to include research to 
support programs designed to reduce gases and particulates 
emitted by aircraft.
Conference Substitute
      House bill.

                MERRILL FIELD AIRPORT, ANCHORAGE, ALASKA

H--/S218

House bill
      No similar provision.
Senate bill
      Section 218 modifies current federal restrictions at 
Merrill Field Airport in Anchorage, Alaska to facilitate 
airport and federal highway development.
Conference Substitute
      Senate bill dropped due to the inclusion of language 
addressing this provision in the section entitled ``Release 
from Restrictions''.

  INCLUSION OF MEASURES TO IMPROVE THE EFFICIENCY OF AIRPORT BUILDINGS

H--/S222

House bill
      No similar provision.
Senate bill
      Section 222 specifies that AIP funds can be used for 
updating buildings to meet high-performance green building 
standards.
Conference Substitute
      House bill.

  TITLE II--NEXT GENERATION AIR TRANSPORTATION SYSTEM AND AIR TRAFFIC 
                         CONTROL MODERNIZATION

                              DEFINITIONS

H201/S327

House bill
      Section 201 defines the terms: ``NextGen,'' ``Automatic 
Dependent Surveillance Broadcast (ADS-B)'', ``ADS-B In'', 
``ADS-B Out,'' ``Area Navigation (RNAV)'', and ``Required 
Navigation Performance (RNP).''
Senate bill
      Section 327 sets out definitions for ``Administration'', 
``Administrator'', ``NextGen,'' and the ``Secretary''.
Conference Substitute
      House bill.

                  NEXTGEN DEMONSTRATIONS AND CONCEPTS

H202/S--

House bill
      Section 202 directs the Secretary of Transportation when 
allocating funds to give priority to NextGen-specific programs.
Senate bill
      No similar provision.
Conference Substitute
      House bill with minor modification.

    CLARIFICATION OF AUTHORITY TO ENTER INTO REIMBURSABLE AGREEMENTS

H203/S304

House bill
      Section 203 clarifies FAA's existing authority to perform 
work for other agencies with or without reimbursement.
Senate bill
      Section 304 is a similar provision.
Conference Substitute
      House bill.

                         CHIEF NEXTGEN OFFICER

H204/S302,301

House bill
      Section 204 establishes a new position within the FAA--
the Chief NextGen Officer (CNO)--who would be responsible for 
the implementation of NextGen programs. The Chief NextGen 
Officer shall be answerable to the Administrator and appointed 
for a term of 5 years to serve at the pleasure of the 
Administrator. The section directs the CNO to coordinate 
NextGen implementation with the Office of Management and Budget 
and other federal agencies. It requires the CNO to prepare an 
annual NextGen implementation plan.
Senate bill
      Section 302 is a similar provision, but with a technical 
difference and a requirement that the CNO oversee the Joint 
Planning and Development Office's (JPDO) facilitation of 
cooperation among all federal agencies whose operations and 
interests are affected by NextGen implementation.
      Section 301 replaces current Management Advisory Council 
and Air Traffic Services Committee with one governance body--
the Air Traffic Control Modernization Oversight Board.
Conference Substitute
      House bill.

                 DEFINITION OF AIR NAVIGATION FACILITY

H205/S310

House bill
      Section 205 updates and broadens the definition of an air 
navigation facility to clarify that F&E funding may be used for 
many capital expenses directly related to the acquisition or 
improvement of buildings, equipment, and new systems related to 
the national airspace system and NextGen.
Senate bill
      Section 310 is a similar provision.
Conference Substitute
      House bill.

             CLARIFICATION TO ACQUISITION REFORM AUTHORITY

H206/S305

House bill
      Section 206 repeals a provision with limits on ``other 
than competitive procedures'' that conflicts with the FAA's 
1996 procurement reform.
Senate bill
      Section 305 is a similar provision.
Conference Substitute
      House bill.

               ASSISTANCE TO FOREIGN AVIATION AUTHORITIES

H207/S306
House bill
      Section 207 clarifies the FAA's current authority to 
provide air traffic services abroad, whether or not the foreign 
entity is private or governmental, and that the FAA may 
participate in any competition to provide such services. It 
clarifies that the Administrator may allow foreign authorities 
to pay in arrears rather than in advance, and that any payment 
for such assistance may be credited to the current applicable 
appropriations account.
Senate bill
      Section 306 is a similar provision.
Conference Substitute
      House bill.

     NEXT GENERATION AIR TRANSPORTATION SYSTEM JOINT PLANNING AND 
                           DEVELOPMENT OFFICE

H208/S309(a)

House bill
      Section 208(a) elevates the Director of the Joint 
Planning and Development Office (JPDO) to the level of 
Associate Administrator for NextGen, reporting directly to the 
Administrator. The responsibilities of the Director will 
include: 1) establishing specific quantitative goals for the 
safety, capacity, efficiency, performance, and environmental 
impacts of each phase of NextGen planning and development 
activities; 2) working to ensure global interoperability of 
NextGen; 3) working to ensure the use of weather information 
and space weather information in NextGen as soon as possible; 
4) overseeing, with the Administrator and in consultation with 
the Chief NextGen Officer (CNO), the selection of products or 
outcomes of Research, Engineering and Development activities 
that should be moved to a demonstration phase; and 5) 
maintaining a baseline modeling and simulation environment for 
testing and evaluating alternative concepts to satisfy NextGen 
enterprise architecture requirements.
      Section 208(a) directs the Associate Administrator for 
NextGen to also be a voting member on the Joint Resources 
Council.
      Section 208(a) requires the JPDO to coordinate NextGen 
activities with OMB.
      Section 208(a) requires the Department of Defense (DOD), 
Department of Homeland Security (DHS), Department of Commerce, 
and the National Aeronautics and Space Administration (NASA) to 
designate a senior official to work with the FAA on NextGen 
implementation.
      Section 208(b) requires the JPDO to develop an Integrated 
Work Plan that will outline the activities required by partner 
agencies to achieve NextGen.
      Section 208(c) directs FAA to annually publish a NextGen 
Implementation Plan.
      Section 208(d) requires the head of JPDO to develop 
contingency plans for dealing with the degradation of the 
system in the event of a disaster or failure.
Senate bill
      No similar provision.
      No similar provision.
      No similar provision.
      Section 309(a) is a similar provision as House section 
208(a), but creates a NextGen Implementation Office, which will 
be established by FAA, DOD, NASA, Commerce, DHS and other 
applicable agencies.
      No similar provision.
      No similar provision.
      No similar provision.
Conference Substitute
      House bill.

       NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY COMMITTEE

H209/S309(b)

House bill
      Section 209 requires each agency involved in implementing 
NextGen initiatives to participate in an Air Transportation 
Senior Policy Committee. This committee will meet biannually 
and will be responsible for producing an annual report 
summarizing the progress made in carrying out the NextGen 
integrated work plan. The Secretary of Transportation is 
directed to publish an annual report on the date of submission 
of the President's Budget, summarizing the progress made in 
carrying out the integrated work plan.
Senate bill
      Section 309(b) is a similar provision but with a 
requirement that the Senior Policy Committee meet once each 
quarter.
Conference Substitute
      House bill.

               IMPROVED MANAGEMENT OF PROPERTY INVENTORY

H210/S311

House bill
      Section 210 clarifies FAA's current authority to purchase 
and sell property needed for airports and air navigation 
facilities, and includes the authority to retain funds 
associated with disposal of property.
Senate bill
      Section 311 is a similar provision, but does not allow 
these funds to be used to offset costs of property disposal.
Conference Substitute
      House bill.

          AUTOMATIC DEPENDENT SURVEILLANCE BROADCAST SERVICES

H211/S315

House bill
      Section 204 requires an annual audit by the DOT IG of the 
FAA's ADS-B program to assist Congress in creating FAA 
accountability for implementing the ADS-B program. It directs 
the Administrator to initiate a rulemaking proceeding within 
one year after the date of enactment to issue guidelines and 
regulations relating to ADS-B In technology. Requires the Chief 
NextGen Officer to verify that the necessary ground 
infrastructure is installed and functioning properly, 
certification standards have been approved, and appropriate 
operational platforms interface safely and efficiently before 
the date on which all aircraft are required to be equipped with 
ADS-B In technology. The Administrator is directed to develop, 
in consultation with employee and industry groups, plans for 
the use of ADS-B technology, including testing, controller 
training, and policy for early aircraft equipage.
Senate bill
      Section 315 is a similar provision, but requires a 
defined budget and the identification of actual benefits to 
national airspace system (NAS) users including small and 
medium-sized airports and the general aviation community. It 
requires two rulemakings by the FAA: 1) to complete a 
rulemaking procedure within 45 days of enactment and mandate 
that all aircraft should be equipped with ADS-B Out technology 
by 2015; and 2) to initiate a rulemaking procedure on ADS-B In 
technology and require all aircraft to be equipped with ADS-B 
In by 2018. The FAA is required to create a plan for ADS-B 
technology use by air traffic control by 2015, including a test 
of ADS-B prior to 2015 within the plan. It sets conditional 
extensions of the deadline for equipping aircraft with ADS-B 
technology.
Conference Substitute
      House bill modified to include an additional requirement 
in the DOT IG review to identify ``any potential operational or 
workforce changes resulting from deployment of ADS-B''.

                  ACCELERATION OF NEXTGEN TECHNOLOGIES

H213/S314,510

House bill
      Section 213(a) requires the Administrator to publish a 
report within six months (but after consultation with employee 
groups) that includes how FAA will develop: 1) Area Navigation 
and Required Navigation Performance (RNAV/RNP) procedures at 35 
Operational Evolution Partnership (OEP) airports identified by 
FAA; 2) a description of requirements to implement them; 3) an 
implementation plan; 4) an assessment of the cost/benefit for 
using third parties to develop procedures; and 5) a process for 
creating future RNA/RNP procedures. (The FAA is directed to 
implement 30 percent of these procedures within 18 months, 60 
percent within 36 months, and 100 percent by June 2015.
      Section 213(b) establishes a charter with Performance 
Based Navigation ARC as necessary to establish priorities in 
navigation performance and area navigation procedures based on 
potential safety and efficiency benefits to the NAS, including 
small and medium hub airports.
      Section 213(c) states that performance and area 
navigation procedures under this section shall be presumed 
covered by categorical exclusion in Chapter 3 of FAA Order 
1050.1E.
      Section 213(d) directs the Administrator to submit a 
development plan in one year for nationwide data communications 
systems.
      Section 213(e) instructs the Administrator to outline in 
the NextGen Implementation Plan what utilization of ADS-B, RNP 
and other technologies included as part of NextGen 
implementation will display position of aircraft more 
accurately, and the feasibility of reducing aircraft separation 
standards. Should it be deemed feasible to reduce aircraft 
separation standards, the Administrator shall produce a 
timetable for implementation of such standards.
      Section 213(f) establishes a program in which the 
Administration will utilize third parties to develop air 
traffic procedures.
Senate bill
      Section 314 directs the Administrator to publish a report 
within six months, after consultation with stakeholders, 
including the development of: 1) RNP/ RNAV procedures at 137 
airports; 2) a description of the activities required for their 
implementation; 3) an implementation plan that includes 
baseline and performance metrics; 4) assessment of the 
benefits/costs of using third parties to develop the 
procedures; and 5) a process for the creation of future RNP and 
RNAV procedures. The Administrator must implement 30 percent of 
the procedures within 18 months of enactment, 60 percent within 
36 months of enactment, and 100 percent by 2014. The 
Administrator is directed to create a plan for the 
implementation of procedures at the remaining airports across 
the country. It would require 25 percent of the procedures at 
these airports to be implemented within 18 months after 
enactment, 50 percent within 30 months after enactment; 75 
percent within 42 months after enactment, and 100 percent 
before 2016. The charter of the Performance Based Navigation 
ARC is extended and directs it to establish priorities for 
development of the RNP/RNAV procedures based on potential 
safety and congestion benefits. It would require that the 
process of the development of such procedures be subject to a 
previously established environmental review process. The FAA is 
directed to provide Congress with a deployment plan for the 
implementation of a nationwide data communications system to 
support NextGen air traffic control and a report evaluating the 
ability of NextGen technologies to facilitate improved 
performance standards for aircraft in the NAS.
Conference Substitute
      House bill modified to change language to separate OEP 
and non-OEP airports to establish separate timelines and 
milestones, to require the FAA to provide a categorical 
exclusion for RNP/RNAV procedures that would lead to a 
reduction in aircraft fuel consumption, emissions and noise on 
an average per flight basis, and to direct the Administrator to 
establish a program under which the Administrator is authorized 
to utilize the services of qualified third parties in the 
development, testing, and maintenance of flight procedures.

  DOT INSPECTOR GENERAL REVIEW OF OPERATIONAL APPROACH PROCEDURES BY 
                              THIRD PARTY

H--/S510(b)

House bill
      No similar provision.
Senate bill
      Section 510(b) directs the DOT IG review and report to 
Congress on FAA's oversight of third party development of 
flight procedures, the extent of new flight procedures 
developed by third parties, and whether FAA has the resources 
to develop these procedures without the use of third parties.
Conference Substitute

      House bill.

                          PERFORMANCE METRICS

H214/S317

House bill
      Section 214 requires the FAA, within 180 days after 
enactment, to establish and track NextGen related performance 
metrics within the national airspace system and to submit an 
annual report to Congress based on the results of the study.
Senate bill
      Section 317 is a similar provision, but it has some 
different metrics including ones to demonstrate reduced fuel 
burn and emissions.
Conference Substitute
      House bill. The conference committee believes that 
performance metrics are the best way to evaluate the FAA's 
progress in implementing NextGen. With these metrics, Congress 
and the public will be able to determine the Administration's 
real progress in the delivery of NextGen benefits, which is the 
goal of the NextGen program.

                 CERTIFICATION STANDARDS AND RESOURCES

H215/S318

House bill
      Section 215 requires the FAA to develop a plan to 
accelerate the certification of NextGen technologies.
Senate bill
      Section 318 is a similar provision, but it prohibits the 
FAA from making any distinction between publicly and privately 
owned equipment when determining certification requirements.
Conference Substitute
      House bill modified to include language prohibiting the 
FAA from making any distinction between publicly and privately 
owned equipment when determining certification requirements.

                      SURFACE SYSTEMS ACCELERATION

H216/S321

House bill
      Section 216 directs the Chief Operation Officer of the 
Air Traffic Organization (ATO) to: 1) evaluate Airport Surface 
Detection Equipment-Model X (ASDE-X); 2) evaluate airport 
surveillance technologies; 3) accelerate implementation of 
ASDE-X; and 4) carry out additional duties as required by the 
Administrator. The Administrator is required to consider 
options for expediting the certification of Ground-Based 
Augmentation System (GBAS) technology, and develop plans to 
utilize such a system at the 35 OEP airports by September 30, 
2012.
Senate bill
      Section 321 is a similar provision, however it directs 
the FAA to consider expediting the certification of Ground 
Based Augmentation Systems (GBAS) technology and develop a plan 
to utilize it at the 35 OEP airports by September 30, 2012.
Conference Substitute
      House bill.

INCLUSION OF STAKEHOLDERS IN AIR TRAFFIC CONTROL MODERNIZATION PROJECTS

H217/S322

House bill
      Section 217 requires the Administrator to create a 
process for including union employees in the planning, 
development, and deployment of air traffic control projects. 
Within 180 days of enactment, the FAA must report to Congress 
on implementation of this provision.
Senate bill
      Section 322 is a similar provision, but it provides 
travel and per diem expenses for the employees.
Conference Substitute
      House bill modified, directing the Administrator to 
include qualified employees selected by each collective 
bargaining representative of employees affected by air traffic 
control modernization projects. Includes provision for 
employees to receive per diem reimbursement, if appropriate, 
however, the Administrator is prohibited from paying overtime 
expenses except in extraordinary circumstances. The provision 
also directs participants to adhere to deadlines and milestones 
to help keep NextGen on schedule.

                           AIRSPACE REDESIGN

H218/S--

House bill
      Section 218 contains Findings of Congress that the FAA 
redesign efforts will play a critical role in enhancing 
capacity, reducing delays, and transitioning to more flexible 
routing. Additionally, the Findings state that funding cuts 
have led to delays and deferrals to critical capacity enhancing 
airspace redesign efforts, and several new runways planned for 
in FY 2011 and FY 2012 will not provide estimated capacity 
benefits without additional funds. It also requires the 
Administrator to work with the New York/New Jersey Port 
Authority to monitor the noise impacts of the redesign and 
submit a report to Congress on those impacts in one year.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

  STUDY ON FEASIBILITY OF DEVELOPMENT OF A PUBLIC INTERNET WEB BASED 
        RESOURCE ON LOCATIONS OF POTENTIAL AVIATION OBSTRUCTIONS

H219/S--

House bill
      Section 219 instructs the Administrator to carry out a 
study on the feasibility of developing publicly searchable web-
based resources with information regarding height, latitudinal 
and longitudinal locations of guywire and free-standing tower 
obstructions.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

         NEXTGEN RESEARCH AND DEVELOPMENT CENTER OF EXCELLENCE

H220/S--

House bill
      Section 220 permits the Administrator to enter into an 
agreement on a competitive basis to assist the establishment of 
a Center of Excellence for the research and development of 
NextGen technologies.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                      PUBLIC-PRIVATE PARTNERSHIPS

H221/S--

House bill
      Section 221 directs the Administrator to develop a plan 
to expedite the equipage of general aviation and commercial 
aircraft with NextGen technologies.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to include language on NextGen public 
private partnership program. The language describes financial 
instruments which the Secretary may use to facilitate public-
private financing. In addition, language establishing an 
avionics incentive program for facilitating the acquisition and 
installation of equipment that is deemed to be in the interest 
of achieving NextGen capabilities in commercial and general 
aviation aircraft. Language regarding limitation on principal 
is included with language regarding collateral, fees and 
premiums as well as use of funds.
      Subject to the availability of funds, the Secretary, or 
his/her designee, may guarantee loans with deferred repayment 
schedules, provided that in establishing the decisional 
criteria for the period of deferral, the Secretary or his 
designee shall consider the terms of the deferral established 
by other transportation loan guarantee programs and when 
equipment qualifying under subsection (A) of this section will 
be put to beneficial use in aircraft. The Secretary shall 
ensure that any such applications are reviewed under procedures 
similar to those established for the Railroad Rehabilitations 
and Improvement Financing program. The authority of the 
Secretary to issue credit assistance terminates 5 years after 
the date of establishment of the Incentive Program.
      In reviewing and evaluating applications for loan 
guarantees, the Secretary or his/her designee shall reference 
similar provisions in Sections 821, 822, and 823 of the 
Railroad Rehabilitation and Improvement Financing program, 800 
et seq. of Title 45, U.S.C. when considering the following: (a) 
the estimated cost to the federal government of providing the 
requested form and amount of assistance; (b) the estimated 
public and aviation system benefits to be derived from 
installing the required avionics in the most timely manner; (c) 
the amount of private sector funding that will be committed and 
the amount of private sector capital placed at risk; and (d) 
the likelihood of default by borrowers.

              FACILITATION OF NEXTGEN AIR TRAFFIC SERVICES

H--/S303

House bill
      No similar provision.
Senate bill
      Section 303 describes the factors that the FAA would 
consider in determining whether to accept the provision of air 
traffic services by non-governmental providers.
Conference Substitute
      House bill.

                         OPERATIONAL INCENTIVES

H--/S316

House bill
      No similar provision.
Senate bill
      Section 316 requires the FAA to issue a report to 
identify incentives to encourage the equipping of aircraft with 
NextGen technologies--including a ``best equipped, best 
served'' approach.
Conference Substitute
      Senate bill.

                        EDUCATIONAL REQUIREMENTS

H--/S312

House bill
      No similar provision.
Senate bill
      Section 312 requires FAA to reimburse Department of 
Defense (DOD) for the cost of DOD-provided education of 
dependents of FAA employees stationed in Puerto Rico and Guam.
Conference Substitute
      Senate bill.

                STATE ADS-B EQUIPAGE BANK PILOT PROGRAM

H--/S324

House bill
      No similar provision.
Senate bill
      Section 324 authorizes the Secretary of Transportation to 
enter into cooperative agreements with up to five states to 
establish ADS-B equipage banks for making loans and providing 
other assistance to public entities.
Conference Substitute
      House bill.

                REPORT ON FUNDING FOR NEXTGEN TECHNOLOGY

H--/S319

House bill
      No similar provision.
Senate bill
      Section 319 requires the FAA to report on: 1) a financing 
proposal to fund the development and implementation of NextGen 
technology; and 2) recommendations for operational benefits 
that could be provided to aircraft for early equipage with 
NextGen technologies.
Conference Substitute
      House bill.

        AIR TRAFFIC CONTROLLER STAFFING INITIATIVES AND ANALYSIS

H--/S325

House bill
      No similar provision.
Senate bill
      Section 325 directs the FAA to implement certain DOT IG 
recommendations with respect to the air traffic control tower 
at Los Angeles International Airport and the Southern 
California Terminal Radar Approach Control and Northern 
California Terminal Radar Approach Control facilities by, among 
other things, ensuring that classroom space, contract 
instructors, and simulators are sufficiently available to 
provide training to trainee air traffic controllers; evenly 
distributing new trainee controllers across the facilities over 
the calendar year; and commissioning an independent analysis, 
in consultation with the controllers' exclusive collective 
bargaining representative, of overtime scheduling practices.
Conference Substitute
      Senate bill modified by removing language that would 
limit application of this section to only the facilities named 
above. In addition, directs the Administrator, as soon as 
practicable, to assess training programs at air traffic control 
facilities with below-average success rates and prioritize such 
efforts to address recommendations for the facilities 
identified in Inspector General of the Department of 
Transportation Report Number AV-2009-047.

          SEMIANNUAL REPORT ON STATUS OF GREENER SKIES PROJECT

H--/S326

House bill
      No similar provision.
Senate bill
      Section 326 requires the FAA to report to Congress on a 
strategy for accelerated implementation of the NextGen 
operational capabilities produced by the Greener Skies project. 
Follow-up reports are due 180 days after the first report is 
submitted and then every 180 days after that until September 
30, 2011.
Conference Substitute
      Senate bill with modified language requiring the first 
report to be submitted six months after enactment, with follow 
up reports annually (instead of reports every 180 days) until 
the pilot program terminates.

               FINANCIAL INCENTIVES FOR NEXTGEN EQUIPAGE

H--/S328

House bill
      No similar provision.
Senate bill
      Section 328 authorizes the FAA Administrator to enter 
into agreements to fund the costs of equipping aircraft with 
avionics to enable NextGen technologies, including grants or 
other financial instruments.
Conference Substitute
      Senate bill dropped, however House language on public-
private partnerships was included.

                           TITLE III--SAFETY

            JUDICIAL REVIEW OF DENIAL OF AIRMEN CERTIFICATES

H301/S502

House bill
      Section 301 allows a person to seek judicial review of a 
National Transportation Safety Board order in an appeal of a 
decision on an application for an airman certificate.
Senate bill
      Section 328 is a similar provision with minor technical 
differences.
Conference Substitute
      House bill.

      RELEASE OF DATA RELATING TO ABANDONED TYPE CERTIFICATES AND 
                     SUPPLEMENTAL TYPE CERTIFICATES

H302/S503

House bill
      Section 302 authorizes the Administrator to release 
certificate information without consent of the owner if: 1) the 
requested data has been inactive for three or more years; 2) 
the FAA cannot, after due diligence, find the owner of record, 
or the owner of record's heir; and 3) making the data available 
will enhance aviation safety. The Administrator shall maintain 
engineering data in possession of the FAA relating to a type 
certificate that has been inactive for three or more years.
Senate bill
      Section 503 is a similar provision but with no language 
regarding the requirement to maintain data.
Conference Substitute
      House bill.

            DESIGN AND PRODUCTION ORGANIZATION CERTIFICATES

H303/S504

House bill
      Section 303 directs the Administrator to issue Certified 
Design and Production Organization Certificates to aviation 
manufacturers in order to streamline the certification process 
and allow FAA to focus its safety resources on primary safety 
concerns. It clarifies that nothing in this section would 
affect the FAA's authority to revoke the Certified Design and 
Production Organization Certificates once issued. The 
Administrator is directed to start issuing such certificates by 
January 1, 2013.
Senate bill
      Section 504 authorizes the Administrator to issue design 
organization certificates beginning on January 1, 2013.
Conference Substitute
      House bill.

                        CABIN CREW COMMUNICATION

H--/S508

House bill
      No similar provision.
Senate bill
      Section 508 requires that flight attendants be able to 
read, speak and write English well enough to: 1) read and 
comprehend material; 2) provide direction to, and understand 
and answer questions from, English-speaking individuals; 3) 
write incident reports and statements, and log entries and 
statements; and 4) carry out written and oral instruction 
regarding the proper performance of their duties. This section 
does not apply to flight attendants serving solely between 
points outside the United States.
Conference Substitute
      Senate bill, however the FAA shall work with air carriers 
to facilitate compliance through the flight attendant 
certification requirements of 49 U.S.C. 44728.

                         LINE CHECK EVALUATIONS

H316/S722

House bill
      Section 316 requires the Administrator to sunset, one 
year after the date of enactment, the requirement for a second 
yearly line check evaluation for airline pilots over the age of 
60, unless the Secretary of Transportation certifies that the 
additional line check is necessary to ensure safety.
Senate bill
      Section 722 is a similar provision, but does not require 
DOT safety certification.
Conference Substitute
      Senate bill.

                   SAFETY OF AIR AMBULANCE OPERATIONS

H310/S507

House bill
      Section 310 directs the FAA to issue a Notice of Proposed 
Rulemaking (NPRM) within 180 days to address air ambulance 
safety. It requires a follow up or rulemaking to address 
additional Helicopter Emergency Medical Services training. 
Operators are required to collect and report data to the 
Administrator on their operations, including the number of 
flights and hours flown and for the FAA to report on that data 
24 months after enactment, and annually thereafter.
Senate bill
      Section 507 is similar language, but includes fixed-wing 
ambulance operators within the NPRM and includes a deadline of 
60 days. It does not require pilot training, radar altimeters, 
survivability equipment, or operational control centers to be 
addressed within the NPRM. It requires helicopter and fixed 
wing air ambulance operators to comply with regulations under 
14 Code of Federal Regulations (C.F.R.) part 135 whenever there 
is medical personnel onboard, with certain exceptions. It also 
requires that terrain awareness and warning systems be onboard 
helicopter and fixed wing aircraft within one year. The FAA is 
directed to study and initiate a third rulemaking within one 
year of enactment to require devices similar to Cockpit Voice 
Recorders (CVR) and Flight Data Recorders (FDR).
Conference Substitute
      House bill with modified language to change deadline for 
the first two rulemakings to June 1, 2012.

   PROHIBITION ON PERSONAL USE OF CERTAIN DEVICES ON THE FLIGHT DECK

H313/S558

House bill
      Section 313 prohibits the use of laptops and other 
personal wireless devices by the flight crew on the flight deck 
while the aircraft is being operated except if the device is 
being used for a purpose related to the operation of the 
aircraft, emergencies or safety, or employment related 
communications. It authorizes civil penalties for violation of 
this provision and gives the Administrator the ability to 
amend, modify, suspend or revoke an operator's certificate for 
violation of this provision. The Secretary of Transportation is 
required to initiate a rulemaking within 90 days of enactment; 
and a final rule is due two years after date of enactment. It 
directs the Administrator to conduct a study and report to 
Congress on the sources of distraction for flight crewmembers.
Senate bill
      Section 558 is a similar provision, except only civil 
penalties are authorized for violation of this provision. It 
directs FAA to initiate a rulemaking within 30 days of 
enactment, and issue a final rule within one year of enactment.
Conference Substitute
      House bill.

    INSPECTION OF REPAIR STATIONS LOCATED OUTSIDE THE UNITED STATES

H315/S521

House bill
      Section 315 requires the Administrator to establish and 
implement a system for assessing the safety of foreign repair 
stations based on identified risks and consistent with U.S. 
requirements. The FAA is to initiate inspections as frequently 
as it determines is warranted by its safety assessment system. 
The Departments of Transportation and State are required to 
request members of the International Civil Aviation 
Organization to establish international standards for drug/
alcohol testing of safety inspectors. The Administrator is 
directed to issue a proposed rule within one year of enactment 
requiring that all foreign repair station employees responsible 
for safety-sensitive maintenance functions are subject to an 
alcohol and controlled substances testing program that is 
determined acceptable by the FAA and is consistent with the 
applicable laws of the country in which the repair station is 
based. The FAA is to provide an annual report within one year 
of enactment, and annually thereafter, on the Administration's 
oversight of foreign repair stations and implementation of the 
foreign repair station safety assessment system. It instructs 
the Administrator to notify Congress within 30 days after 
initiating formal negotiations with a foreign aviation 
authority or other appropriate foreign government agency on a 
new maintenance implementation agreement.
Senate bill
      Section 521 is a similar provision, but directs the FAA 
to inspect all repair stations, including those abroad, at 
least twice a year in a manner consistent with United States 
obligations under international agreements. The inspection 
results for foreign civil aviation authorities shall be 
considered if the foreign country has a maintenance safety 
agreement with the United States.
Conference Substitute
      House and Senate bills merged and modified, removing 
language requiring that the report on part 145 repair stations 
be completed within 1 year of enactment and modified the annual 
inspections requirement from occurring ``as frequently as 
determined warranted'' to annually in a manner that is 
consistent with U.S. obligations under international 
agreements, with additional inspections authorized based on 
identified risks.

        ENHANCED TRAINING FOR FLIGHT ATTENDANTS AND GATE AGENTS

H--/S562

House bill
      No similar provision.
Senate bill
      Section 562 requires that flight attendants and gate 
agents receive training related to: serving alcohol to 
passengers; recognizing intoxicated passengers; and dealing 
with disruptive passengers.
Conference Substitute
      Senate bill modified by removing references to gate 
agents from the provision.

             LIMITATION ON DISCLOSURE OF SAFETY INFORMATION

H337/S554

House bill
      Section 337 amends Chapter 447, by exempting the 
following reports and data from being subject to discovery or 
subpoena or admitted into evidence in a Federal or State court: 
an Aviation Safety Action Program (ASAP) report; data produced 
from a Flight Operational Quality Assurance (FOQA) Program; a 
Line Operations Safety Audit (LOSA) Program report; hazard 
identification, risk assessment risk control; safety data 
collected for purpose of assessing/improving aviation safety; 
and reports, analyses and directed studies based in whole or 
part on reports from the aforementioned programs including 
those under the Aviation Safety Information Analysis and 
Sharing (ASIAS) Programs. Any report or data that is 
voluntarily provided to the FAA shall be considered to be 
voluntarily submitted information within the meaning and shall 
not be disclosed to the public. The FAA may release documents 
to the public that include summaries, aggregations or 
statistical analyses based on reports or data described in this 
section, and the NTSB is not prevented from referring to 
relevant information. This exemption shall not apply to a 
report developed or data produced on behalf of a person if that 
person waives the privileges provided.
Senate bill
      Section 554 would limit the use of FOQA and ASAP and LOSA 
data in judicial proceedings. FOQA, ASAP or LOSA data would 
only be allowed in a judicial proceeding if the judge finds 
that a party shows that the information is relevant, not 
otherwise known or available, and demonstrates a particularized 
need for the information that outweighs the intrusion upon the 
confidentiality of these programs. If this information is used 
in a judicial proceeding, the court would be required to 
protect it against further dissemination with a protective 
order and place the information under seal. This section would 
also prohibit disclosure of this data through the Freedom of 
Information Act. This section would not prevent the NTSB from 
referring to information provided under the FOQA, ASAP or LOSA 
programs.
Conference Substitute
      House bill modified with technical edits.

       PROHIBITION AGAINST AIMING A LASER POINTER AT AN AIRCRAFT

H--/S733

House bill
      No similar provision.
Senate bill
      Section 733 amends title 18, United States Code, to add a 
new section 39A to make it a crime to knowingly aim the beam of 
a laser pointer at an aircraft in the special aircraft 
jurisdiction of the United States or at the flight path of such 
aircraft. An individual convicted of this crime is subject to 
criminal fines or imprisonment up to 5 years. This provision 
does not apply to: 1) individuals conducting research and 
development or flight test operations for an aircraft 
manufacturer or the Federal Aviation Administration; 2) 
Department of Defense (DOD) or Department of Homeland Security 
(DHS) personnel conducting research, development, operations, 
testing or training; or 3) an individual using a laser 
emergency signaling device to send a distress signal. Section 
39A authorizes the Attorney General, in consultation with the 
Secretary of Transportation, to provide by regulation, after 
public notice and comment, additional exceptions to this 
provision as necessary and appropriate. The Attorney General 
must give written notice of any such proposed regulations to 
the House and Senate Committees on the Judiciary as well as 
other specified committees.
Conference Substitute
      Senate bill with minor modifications.

            AIRCRAFT CERTIFICATION PROCESS REVIEW AND REFORM

H304/S--

House bill
      Section 304 directs the Administrator to review the 
current practices for aircraft certification. It requires that 
in his/her assessment the Administrator must make 
recommendations to improve efficiency and reduce costs through 
streamlining and reengineering of certification process and 
issue a report within 180 days.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                CONSISTENCY OF REGULATORY INTERPRETATION

H305/S--

House bill
      Section 305 directs the Administrator to convene an 
advisory panel to determine the root causes of inconsistent 
interpretation of regulations by the FAA Flight Standards 
Service and Aircraft Certification Service, develop 
recommendations to improve the consistency of interpreting the 
regulations, and submit these recommendations to Congress 
within six months.
Senate bill
      No similar provision.
Conference Substitute
      House bill with modification of six months to twelve 
months to submit recommendations to Congress.

                             RUNWAY SAFETY

H306/S501,517

House bill
      Section 306 requires the Administrator within six months 
to create a Strategic Runway Safety Plan to address: 1) goals 
to improve safety; 2) near and long term actions, time frames 
and resources needed, continuous evaluative process for goals, 
and review of every commercial service airport; and 3) 
increased runway safety risks with the expected increased 
volume of air traffic. It requires a report to Congress by 
December 31, 2011 outlining a plan to install and deploy 
systems to alert controller and/or flight crews of potential 
runway incursions.
Senate bill
      Section 328 is a similar provision.
Conference Substitute
      House bill.

                  FLIGHT STANDARDS EVALUATION PROGRAM

H308/S--

House bill
      Section 308 directs the Administrator to modify the 
Flight Standards Evaluation Program to include periodic and 
random audits of air carriers in the agency's oversight, and 
prohibit an individual from participating in a review or audit 
of an office with responsibility for an air carrier under the 
program if the individual had responsibility for inspecting the 
operations of that carrier in the five year period preceding 
the date of the review. The Administrator is required to report 
to Congress within one year of enactment, and annually 
thereafter on the Flight Standards Evaluation Program.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                             COCKPIT SMOKE

H309/S--

House bill
      Section 309 directs U.S. Government Accountability Office 
to conduct a study on the effectiveness of the FAA's oversight 
of the use of new technologies to prevent/mitigate effects of 
dense and continuous smoke in cockpit of aircraft, with a 
report to be submitted to Congress in one year.
Senate bill
      No similar provision.
Conference Substitute
      House bill with modified language changing the report 
deadline from one year to 18 months.

   OFF-AIRPORT, LOW-ALTITUDE AIRCRAFT WEATHER OBSERVATION TECHNOLOGY

H311/S--

House bill
      Section 311 directs the Administrator to conduct a review 
of off-airport, low-altitude aircraft weather observation 
technologies, which will include an assessment of technical 
alternatives, investment analysis, and recommendations for 
improving weather reporting. A report is required to be 
submitted to Congress in one year.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

 FEASIBILITY OF REQUIRING HELICOPTER PILOTS TO USE NIGHT VISION GOGGLES

H312/S--

House bill
      Section 312 directs the FAA to conduct a study and report 
to Congress within one year of enactment on the feasibility and 
potential risks of requiring all pilots of helicopters 
providing air ambulance services to use night vision goggles 
during nighttime operations.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                         MAINTENANCE PROVIDERS

H314/S522

House bill
      Section 314 requires the Administrator to issue 
regulations within three years to mandate that maintenance work 
on aircraft be performed only by individuals employed by a part 
121 air carrier, a part 145 repair station, or a company that 
provides contract workers to part 121 carriers or part 145 
repair stations if the individual meets part 121/145 
requirements, works under the supervision of a part 121/145 
carrier/station, and carries out the work in accordance with 
part 121/145.
Senate bill
      Section 522 is a similar provision.
Conference Substitute
      Senate bill with modifications, including heading changed 
to ``Maintenance Providers.'' This section directs the 
Administrator to require that essential maintenance, regularly 
scheduled maintenance, and work pursuant to required inspection 
items must be performed by part 121 carriers, part 145 repair 
stations, or contractors meeting the requirements of part 121 
or 145 certificate holders. Covered work performed by a 
contractor meeting the requirements of part 121 or 145 
certificate holders are subject to the following terms and 
conditions: 1) the part 121 carrier shall be directly in charge 
of work; 2) the work shall be carried out according to the part 
121 carrier's maintenance manual; and 3) the work shall be 
performed under the part 121 carrier's supervision and control.
      121 air carriers are responsible for ensuring that all 
maintenance, whether performed by the air carrier itself or 
performed by another entity under contract with the carrier, is 
conducted in accordance with the air carrier's maintenance 
program. When maintenance is performed by another entity, the 
air carrier continues to be responsible for the oversight of 
these maintenance providers, who are considered to be an 
extension of the air carrier's maintenance program. This 
provision will ensure that oversight responsibility for 
maintenance remains with the 121 air carrier recognizing 
supervision and oversight of individuals may be with a Part 145 
repair station.
      Responsibility for oversight by 121 carriers is not meant 
to change the permitted work of the Part 145 repair stations. 
In particular, 145 stations can continue to supervise and 
oversee the activities of individuals that perform contract 
maintenance--when it is necessary to obtain technical 
expertise.

                     STUDY OF AIR QUALITY IN CABINS

H--/S564

House bill
      No similar provision.
Senate bill
      Section 517 requires the FAA to initiate a study of air 
quality in aircraft cabins. Additionally, the Administrator 
would be given the authority to require domestic carriers to 
allow monitoring of air quality on their aircraft while the 
study is conducted. The Administrator is required to initiate 
research and development work on effective air cleaning and 
sensor technology for the engine and auxiliary power unit for 
bleed air supplied to the passenger cabin and flight deck of a 
pressurized aircraft within 180 days of enactment.
Conference Substitute
      Senate bill modified by removing language requiring the 
FAA to determine the extent to which the installation of 
sensors and air filters on commercial aircraft would provide a 
public health benefit. The conference also agreed that the 
FAA's authority to monitor air quality may not impose 
significant costs to air carriers and may not interfere with 
the carrier's normal use of the aircraft.

                        IMPROVED PILOT LICENSES

H307/S--

House bill
      Section 307 directs the Administrator to issue improved 
pilot licenses that are tamper-resistant, include a photograph 
of the individual, and are capable of accommodating a digital 
photograph, a biometric identifier, or any other unique 
identifier. It instructs the Administrator to develop methods 
to determine or reveal if part of license issued has been 
tampered with.
Senate bill
      No provision.
Conference Substitute
      House bill modified by adding new language: 1) directing 
the Administrator to provide the relevant House and Senate 
Committees with a timeline for the issuance of pilot licenses; 
2) specifying that the new licenses should incorporate 
biometric identifiers; and 3) requiring that the licenses must 
comply with established aviation security checkpoint clearance 
standards. The conference committee recognizes that the federal 
government is responsible for the screening of all individuals 
prior to entry into airport sterile areas and expects that 
efforts to utilize improved pilot certificates will be carried 
out by the federal government.

       STUDY OF HELICOPTER AND FIXED WING AIR AMBULANCE SERVICES

H--/S717

House bill
      No similar provision.
Senate bill
      Section 717 requires the GAO to conduct a detailed study 
of the air ambulance industry and to make recommendations 
related to the interaction of state and federal regulations of 
air ambulances.
Conference Substitute
      House bill, because the GAO has completed the required 
study.

                             PILOT FATIGUE

H--/S506

House bill
      No similar provision.
Senate bill
      Section 506 requires a study of pilot fatigue to be 
conducted by the National Academy of Sciences and for the FAA 
to consider the study's findings as part of its rulemaking 
proceeding on pilot flight time limitations and rest 
requirements.
Conference Substitute
      Senate provision dropped because it is included in P.L. 
111-216, the Airline Safety and Federal Aviation Administration 
Extension Act of 2010.

OCCUPATIONAL SAFETY AND HEALTH STANDARDS FOR FLIGHT ATTENDANTS ON BOARD 
                                AIRCRAFT

H--/S509

House bill
      No similar provision.
Senate bill
      Section 509 requires the Administrator to establish 
milestones and a policy statement for the completion of work 
with the Occupational Safety and Health Administration (OSHA) 
begun under the August 2000 Memorandum of Understanding (MOU) 
regarding the application of OSHA requirements to crewmembers 
while working in an aircraft.
Conference Substitute
      Senate bill modified by dropping policy statement 
principles. The conference committee believes that in 
initiating development of a policy statement the FAA shall 
consider the establishment of a coordinating body similar to 
the Aviation Safety and Health Joint Team established by the 
August 2000 memorandum of understanding that includes 
representatives designated by both Administrations to examine 
the applicability of current and future Occupational Safety and 
Health Administration regulations; to recommend policies for 
facilitating the training of Federal Aviation Administration 
inspectors; and to make recommendations that will govern the 
inspection and enforcement of safety and health standards on 
board aircraft in operation and all work-related environments. 
Any standards adopted by the Federal Aviation Administration 
shall set forth clearly the circumstances under which an 
employer is required to take action to address occupational 
safety and health hazards; the measures required of an employer 
under the standard; and the compliance obligations of an 
employer under the standard.

                      IMPROVED SAFETY INFORMATION

H--/S511

House bill
      No similar provision.
Senate bill
      Section 511 directs the Administrator to issue a final 
rule regarding re-registration and renewal of aircraft 
registration, which must include preparing for the expiration 
of aircraft registration certificates and periodic renewal 
process, and other measures to promote the accuracy of the 
Administration's aircraft registry.
Conference Substitute
      House bill.

                 USE OF EXPLOSIVE PEST CONTROL DEVICES

H--/S523

House bill
      No similar provision.
Senate bill
      Section 523 requires the FAA to study the use of 
explosive pest control devices to prevent wildlife strikes to 
aircrafts and submit a report in six months.
Conference Substitute
      House bill.

                 Subtitle B--Unmanned Aircraft Systems

                              DEFINITIONS

H321/S--

House bill
      Section 321 defines the terms: ``certificate of waiver'', 
``sense and avoid capability'', ``public unmanned aircraft 
system'', ``small unmanned aircraft'', ``test range'', 
``unmanned aircraft'', and ``unmanned aircraft system (UAS).''
Senate bill
      No similar provision.
Conference Substitute
      House and Senate bills merged to include all of House 
definitions and Senate definition of ``Arctic''.

          INTEGRATION OF CIVIL UNMANNED AIRCRAFT SYSTEMS INTO

                        NATIONAL AIRSPACE SYSTEM

H322/S320, 607(a)(b)(d)(e)(f)

House bill
      Section 322 requires the Secretary of Transportation to 
develop a plan, in consultation with aviation and Unmanned 
Aircraft Systems (UAS) industry representatives, within nine 
months of enactment, for the safe integration of civil UASs 
into the National Airspace (NAS). This plan must contain a 
review of technologies and research to assist in this goal, 
recommendations for a rulemaking on the definition of 
acceptable standards, ensure civil UASs have sense and avoid 
capability, develop standards and requirements for operator and 
pilots of UASs, and recommendations. The plan must include a 
realistic time frame for UAS integration into the NAS, but no 
later than September 30, 2015. The plan must be submitted to 
Congress within one year of enactment. The FAA is required to 
initiate a Notice of Proposed Rulemaking (NPRM) for site 
integration of UAS within 18 months of the date of enactment of 
the integration plan.
Senate bill
      Section 320 requires the FAA to develop a plan within one 
year to accelerate the integration of UASs into the NAS. This 
plan must include: 1) a pilot project that includes the 
integration of UAS into six test sites, representing geographic 
and climate differences within the United States, by 2012; 2) 
development of certification, flight standards, and air traffic 
requirements for UASs; 3) the dedication of funding for 
research on UAS certification, flight standards, and air 
traffic control (ATC); 4) coordination of research between NASA 
and DOD; and 5) verification of the safety of UASs before their 
integration into the NAS. This section would allow the FAA 
Administrator to include testing at six test sites as part of 
the integration plan by 2012. The FAA is directed to work with 
DOD to certify and develop flight standards for military 
unmanned aerial systems and to integrate these systems into the 
NAS as part of the UAS integration plan. The FAA Administrator 
is required to submit a report describing and assessing the 
progress made in establishing special use airspace for DOD to 
develop detection techniques for small UASs.
      Section 607 allows the FAA to conduct developmental 
research on UASs. It would direct the FAA and the National 
Academy of Sciences to create an assessment of UAS capabilities 
and would require the National Academy of Sciences to submit a 
report to Congress on the subject. It requires the FAA to issue 
a rule to update the most recent policy statement on UASs. The 
FAA is directed to identify permanent areas in the Arctic where 
UASs may operate 24 hours a day. The FAA is to take part in 
cost-share pilot projects designed to accelerate the safe 
integration of UASs into the NAS.
Conference Substitute
      House and Senate bills merged. The conference committee 
directs the Secretary to develop a plan to accelerate the safe 
integration of unmanned aircraft systems (UAS) into the 
national airspace system. The Secretary is directed to develop 
the plan in consultation with the aviation industry, federal 
agencies using UASs, and the UAS industry as soon as 
practicable, but no later than September 30, 2015. Concurrent 
with the integration planning, the Secretary is directed to 
publish, and update annually, a five-year roadmap describing 
the activities of the FAA's Unmanned Aircraft Program Office, 
and its efforts to safely integrate UASs into the national 
airspace system. The conference committee also directs the 
Secretary to promulgate rules to allow for integration of small 
UASs into the national airspace system. The conference 
committee also directs the Administrator of the Federal 
Aviation Administration to establish six test ranges until 
September 30, 2020. Test range locations are not designated in 
the legislation. Instead, the Administrator is directed to 
coordinate with, and leverage resources from, the National 
Aeronautics and Space Administration and the Department of 
Defense to select the test ranges based on the criteria set 
forth in this section. This language is consistent with 
legislative direction in the National Defense Authorization Act 
for Fiscal Year 2012 (Public Law 112-81). The intent of the 
committee is for the Administrator to establish a total of six 
test ranges under both laws, and not six ranges to be 
established under each law for a total of twelve. The 
conference committee directs the Secretary to develop a plan 
for the use of UASs in the arctic, as defined in this subtitle. 
Finally, the term ``non-exclusionary airspace'' was removed as 
the FAA does not recognize that term. The conference committee 
intends that when the FAA establishes the program to integrate 
UASs into the national airspace system at six test ranges, the 
Administrator shall safely designate airspace for integrated 
manned and unmanned flight operations in the national airspace 
system.

          SPECIAL RULES FOR CERTAIN UNMANNED AIRCRAFT SYSTEMS

H323/S--

House bill
      Section 323 directs that within 180 days the Secretary of 
Transportation, prior to completing of the Commercial UAS 
integration plan, will determine if certain UASs may operate in 
the NAS. Assessment of the UASs will determine which types of 
UAS do not create hazard to users of NAS or national security, 
and whether a certificate of waiver or authorization of 
airworthiness is required. If the Secretary determines UAS may 
operate safely in the NAS, the Secretary shall establish 
requirements of the safe operation of such systems.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                    PUBLIC UNMANNED AIRCRAFT SYSTEMS

H324/S--

House bill
      Section 324 directs that within 270 days the Secretary of 
Transportation will issue guidance on the operation of public 
UASs to expedite the certificate of authorization process, 
provide a collaborative process for expansion of access to the 
NAS, and provide guidance on public entities responsible when 
operating UASs. By December 31, 2015, the Secretary is required 
to implement operational and certification standards. The 
Secretary is directed to enter into agreements, within 90 days, 
with appropriate government agencies to simplify and expedite 
the process for issuing certificates of waiver or authorization 
regarding applications seeking authorization to operate public 
UASs in the NAS.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                             SAFETY STUDIES

H325/S--

House bill
      Section 325 directs the Administrator to conduct all 
safety studies necessary to support integration of UASs into 
the NAS.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                    SPECIAL RULE FOR MODEL AIRCRAFT

H--/S607(g)

House bill
      No similar provision.
Senate bill
      Section 607(g) exempts most model airplanes used for 
recreational or academic use from any UAS regulations 
established by the FAA.
Conference Substitute
      Senate bill with modifications. Language including model 
aircraft for the purposes of sports, competitions and academic 
purposes is removed and replaced with ``hobby''. The modified 
section includes language requiring that the model aircraft 
must be operated in a manner that does not interfere with and 
gives way to, all manned aircraft. In addition, language that 
requires that model aircraft flown within five miles of an 
airport will give prior notification to the airport and the air 
traffic control (ATC), and that model aircraft that are flown 
consistently within five miles of the ATC will do so under 
standing agreements with the airports and ATC. Lastly, language 
is added that will ensure that nothing in this provision will 
interfere with the Administrator's authority to pursue 
enforcement action against persons operating model aircraft who 
endanger the safety of the national airspace system. In this 
section the term ``nationwide community-based organization'' is 
intended to mean a membership based association that represents 
the aeromodeling community within the United States; provides 
its members a comprehensive set of safety guidelines that 
underscores safe aeromodeling operations within the National 
Airspace System and the protection and safety of the general 
public on the ground; develops and maintains mutually 
supportive programming with educational institutions, 
government entities and other aviation associations; and acts 
as a liaison with government agencies as an advocate for its 
members.

                  UNMANNED AIRCRAFT SYSTEMS TEST RANGE

H326/S607(c)

House bill
      Section 326 directs the Administrator no later than one 
year after enactment to establish a program to integrate UASs 
into the national airspace system at no fewer than four test 
ranges. The program will include safely designating 
nonexclusionary airspace for integrated unmanned flight 
operations, develop certification standards and air traffic 
requirements, coordinate and leverage the resources of National 
Air and Space Administration and Department of Defense, address 
both civil and public UAS, ensure the program is coordinated 
with NextGen, and provide for verification of safety of UASs. 
In determining test range locations the Administrator shall 
consider geographic and climate diversity and consult with NASA 
and the Air Force.
Senate bill
      Section 607(c) is a similar provision, but it allows the 
Administrator to include testing at three test sites as part of 
the integration plan by 2012. It directs the FAA to work with 
DOD to certify and develop flight standards for military UASs 
and to integrate these systems into the NAS as part of the UAS 
integration plan.
      Section 320 establishes a test range program for 10 
sites.
Conference Substitute
      House and Senate bills merged into language that is 
included in Section 332 ``Integration of civil unmanned 
aircraft into the national airspace system''.

                   Subtitle C--Safety and Protections

              AVIATION WHISTLEBLOWER INVESTIGATION OFFICE

H334/S518

House bill
      Section 334 establishes an independent Whistleblower 
investigation office within the FAA. The Director of this 
office is to be appointed by the Secretary of Transportation 
for a five year term. The office is in charge of investigating 
reports of agency or carrier safety violations, and is to make 
recommendations to the Administrator. It specifies that the 
Director cannot be prohibited from initiating an assessment of 
a complaint and that any evidence of criminal violations must 
be reported to the Administrator and Inspector General of the 
Department of Transportation (DOT IG).
Senate bill
      Section 518 is a similar provision, but it does not 
require the Secretary to exercise authority under title 5 for 
the prevention of prohibited personnel actions or require 
direct reporting by the Director to the Secretary.
Conference Substitute
      House bill with modified language to authorize the 
Director of the office created under this section to receive 
and investigate disclosures from employees of the 
Administration as well as employees of persons holding 
certificates issued under title 14 of the Code of Federal 
Regulations (C.F.R.), if those certificate holders do not have 
similar in-house reporting programs, relating to possible 
violation of an order, a regulation, or any other provision of 
federal law relating to aviation safety.

      POST-EMPLOYMENT RESTRICTIONS FOR FLIGHT STANDARDS INSPECTORS

H331/S513

House bill
      Section 331 establishes a two year post-service period 
for FAA inspectors or persons responsible for oversight of FAA 
inspectors before they can act as an agent or representative of 
a certificate holder that they previously had responsibility 
for while employed at the FAA.
Senate bill
      Section 513 is a similar provision, but it has a three 
year post-service restriction.
Conference Substitute
      House bill.

         REVIEW OF AIR TRANSPORTATION OVERSIGHT SYSTEM DATABASE

H332/S520

House bill
      Section 332 requires the FAA to create a process to 
review the Air Transportation Oversight System (ATOS) database 
by regional teams to ensure that trends in regulatory 
compliance are identified, and appropriate corrective actions 
are taken according to Administration regulations.
Senate bill
      Section 520 is a similar provision.
Conference Substitute
      House bill.

             IMPROVED VOLUNTARY DISCLOSURE REPORTING SYSTEM

H333/S512

House bill
      Section 333 requires FAA to modify the Voluntary 
Disclosure Reporting Program (VDRP) to require inspectors to 
verify that air carriers have implemented comprehensive 
solutions to correct underlying causes of voluntarily disclosed 
violations, and confirm, before approving a final report of a 
violation, that the violation has not been previously 
discovered by an inspector or self-disclosed by an air carrier. 
The DOT IG is directed to review the FAA's implementation of 
the VDRP program.
Senate bill
      Section 512 is a similar provision.
Conference Substitute
      House bill.

     DUTY PERIODS AND FLIGHT TIME LIMITATIONS APPLICABLE TO FLIGHT 
                              CREWMEMBERS

H335/S--

House bill
      Section 335 directs the FAA to initiate a rulemaking 
within six months of enactment to require commercial pilots who 
accept additional flight assignments under part 91 of Title 14 
Code of Federal Regulations to count the flying time under the 
additional flight assignments towards the commercial flight 
time limitations. It requires the Administrator to conduct two 
separate rulemakings for part 121 and part 135 flight time 
limitations (the latter rulemaking must be initiated within one 
year of enactment).
Senate bill
      No similar provision.
Conference Substitute
      House bill.

     CERTAIN EXISTING FLIGHT TIME LIMITATIONS AND REST REQUIREMENTS

H336/S--

House bill
      Section 523 extends the sections 263 and 264 of part 135 
of title 14 C.F.R. for part 135 certificate holders providing 
air ambulance services and pilots and flight crewmembers of all 
cargo aircraft regarding certain flight times and rest periods 
shall remain in effect as they were in effect in January 1, 
2011. It prohibits the Administrator from issuing, finalizing 
or implementing a rule as proposed in the FAA docket on 
``Interpretations of Rest Requirements'' published in the 
register on December 23, 2010, or any similar rule regarding 
such sections for part 135 certificate holders providing air 
ambulance services and pilots and flight crewmembers of all 
cargo aircraft.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified by removing language requiring a 
separate rulemaking and language referencing requirements in 
effect on January 1, 2011.

      EMERGENCY LOCATOR TRANSMITTERS ON GENERAL AVIATION AIRCRAFT

H--/S553

House bill
      No similar provision.
Senate bill
      Section 553(a), (b) directs the Administrator to submit 
an annual report to Congress regarding the recommendations 
issued by the NTSB consisting of the following: 1) whether the 
FAA plans to implement the recommendation of the NTSB: 2) if 
so, what actions the FAA plans to take to implement the 
recommendation: and 3) if the FAA chooses to not implement a 
NTSB recommendation, its reasoning for not doing so. This 
section would require the FAA to submit within 180 days to 
Congress the above information on all current NTSB 
recommendations not implemented so far.
      Section 553(c) requires the FAA to implement NTSB 
recommendations relating to the proper installation of 
emergency locator transmitters (ELTs) on general aviation 
aircraft.
Conference Substitute
      Senate bill modified to only keep the ELT language.

LIABILITY PROTECTION FOR PERSONS IMPLEMENTING SAFETY MANAGEMENT SYSTEMS

H338/S--

House bill
      Section 338 specifies that a person required by the FAA 
to implement a Safety Management System (SMS) may not be held 
liable for damages in connection with a claim filed in a State 
or Federal court relating to the person's preparation or 
implementation of the SMS. The section does not relieve a 
person from liability for damages resulting from the person's 
own willful or reckless acts or omissions when demonstrated 
through evidence. Notwithstanding any other provision of law, a 
person employed by previously mentioned individuals and 
responsible for performing functions of an accountable 
executive, shall be deemed to be acting in the person's 
official capacity and may not be held liable for damages. A 
person performing the functions of an accountable executive is 
not relieved from personal liability for damages resulting from 
reckless acts or omissions.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

              MODIFICATION OF CUSTOMER SERVICE INITIATIVE

H--/S519

House bill
      No similar provision.
Senate bill
      Section 519 directs the FAA to remove from their customer 
service initiative, mission statements, and vision statements, 
any reference to air carriers as ``customers''. This section 
instructs the agency to guarantee that these statements should 
emphasize safety as the agency's highest priority when 
considering the dissatisfaction of any regulated entity.
Conference Substitute
      House bill.

                  INDEPENDENT REVIEW OF SAFETY ISSUES

H--/S514

House bill
      No similar provision.
Senate bill
      Section 514 directs the U.S. Government Accountability 
Office (GAO) to initiate a review and investigation of air 
safety issues identified by FAA employees and reported to the 
Administrator. The GAO must report any findings to the 
Administrator and relevant Congressional Committees on an 
annual basis.
Conference Substitute
      House bill.

                          NATIONAL REVIEW TEAM

H--/S515

House bill
      No similar provision.
Senate bill
      Section 517 requires the FAA to create a national review 
team to conduct unannounced, periodic, random reviews of the 
Administration's oversight of air carriers that will report to 
the Administrator and the relevant Congressional Committees. 
Members of the team may not review an air carrier that they 
previously had responsibility for overseeing. The section would 
also direct the DOT IG to provide progress reports on the 
review team's effectiveness to Congress.
Conference Substitute
      House bill.

                SAFETY INSPECTIONS OF REGIONAL CARRIERS

H--/S559

House bill
      No similar provision.
Senate bill
      Section 559 instructs the Administrator to make random, 
on-site safety inspections of regional air carriers at least 
once a year.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

               OVERSIGHT OF PILOT FLIGHT TRAINING SCHOOLS

H--/S561

House bill
      No similar provision.
Senate bill
      Section 561 directs the Administrator to submit a plan to 
Congress detailing the FAA's plans to enforce oversight of 
Pilot Training Schools.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

         FEDERAL AVIATION ADMINISTRATION PILOT RECORDS DATABASE

H--/S551

House bill
      No similar provision.
Senate bill
      Section 551 requires that part 121 air carriers review a 
pilot's entire history before making hiring decisions. It would 
mandate that the FAA develop and maintain a comprehensive 
database of pilot records, including both FAA records and air 
carrier records. It contains provisions permitting pilots to 
review and correct their records.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

                 AIR CARRIER SAFETY MANAGEMENT SYSTEMS

H--/S552

House bill
      No similar provision.
Senate bill
      Section 552 directs the FAA to initiate a rulemaking 
requiring all part 121 air carriers to implement three safety 
programs as part of their Safety Management Systems (SMS) 
including: an Aviation Safety Action Program (ASAP), a Flight 
Operational Quality Assurance (FOQA) program, and a Line 
Operations Safety Audit LOSA program. It would require that the 
FAA implement employee protections for the ASAP and FOQA 
programs and mandate that the FAA Administrator consider the 
viability of integrating cockpit voice recorder data into 
safety oversight practices and guarantee that the agency 
enforce safety regulations in a consistent manner.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

IMPROVED FLIGHT OPERATIONAL QUALITY ASSURANCE, AVIATION SAFETY ACTION, 
               AND LINE OPERATIONAL SAFETY AUDIT PROGRAMS

H--/S554

House bill
      No similar provision.
Senate bill
      Section 554 would limit the use of FOQA and ASAP and LOSA 
data in judicial proceedings. FOQA, ASAP or LOSA data would 
only be allowed in a judicial proceeding if the judge finds 
that a party shows that the information is relevant, not 
otherwise known or available, and demonstrates a particularized 
need for the information that outweighs the intrusion upon the 
confidentiality of these programs. If this information is used 
in a judicial proceeding, the court would be required to 
protect it against further dissemination with a protective 
order and place the information under seal. This section would 
prevent disclosure of this data through the FOIA but would not 
prevent the NTSB from referring to information provided under 
the FOQA, ASAP or LOSA programs.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

   RE-EVALUATION OF FLIGHT CREW TRAINING, TESTING, AND CERTIFICATION 
                              REQUIREMENTS

H--/S555

House bill
      No similar provision.
Senate bill
      Section 555 requires the Administrator to develop and 
implement a plan to reevaluate flight crew training procedures 
and would specify what types of training would be included in 
the review. It would require the Administrator to initiate a 
new rulemaking to reevaluate minimum requirements to become a 
commercial pilot, certificated captain, and when transitioning 
to a new type of aircraft.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

 FLIGHTCREW MEMBER MENTORING, PROFESSIONAL DEVELOPMENT, AND LEADERSHIP

H--/S556

House bill
      No similar provision.
Senate bill
      Section 556 requires the FAA to establish an ARC to 
develop flight crew mentoring programs and establish or modify 
training existing programs to include leadership and command 
training.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

             FLIGHTCREW MEMBER SCREENING AND QUALIFICATIONS

H--/S557

House bill
      No similar provision.
Senate bill
      Section 557 requires the FAA to issue a rule that ensures 
flight crew members have proper qualifications and experience, 
including a minimum of 800 hours of flight training, before 
serving as a flight crew member for a part 121 air carrier.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

ESTABLISHMENT OF SAFETY STANDARDS WITH RESPECT TO THE TRAINING, HIRING, 
                  AND OPERATION OF AIRCRAFT BY PILOTS

H--/S560

House bill
      No similar provision.
Senate bill
      Section 560 requires the FAA to issue a final rule 
establishing training safety standards for pilots within 180 
days after enactment of this Act.
Conference Substitute
      Senate bill dropped because it is included in P.L. 111-
216, the Airline Safety Federal Aviation Administration 
Extension Act of 2010.

                              DEFINITIONS

H--/S563

House bill
      No similar provision.
Senate bill
      Section 563 defines the terms: ``Aviation Safety Action 
Program,'' ``Administrator'', ``Air Carrier'', ``FAA'', 
``Flight Operational Quality Assurance Program'', ``Line 
Operation Safety Audit Program'', and ``Part 121 Air Carrier''.
Conference Substitute
      House bill.

                   TITLE IV--AIR SERVICE IMPROVEMENTS

                   Subtitle B--Essential Air Service

                    ESSENTIAL AIR SERVICE MARKETING

H401/S417

House bill
      Section 401 specifies that when deciding where to award 
an Essential Air Service (EAS) contract, the Secretary of 
Transportation must consider, whether the air carrier has 
included a plan in its proposal to market its services to the 
community.
Senate bill
      Section 417 similar provision, but it requires that all 
applications for EAS are to include a marketing plan to promote 
community involvement in their EAS service.
Conference Substitute
      House bill.

   NOTICE TO EAS COMMUNITIES PRIOR TO TERMINATION OF EAS ELIGIBILITY

H402/S--

House bill
      Section 402 requires the Secretary of Transportation to 
notify a community receiving EAS at least 45 days in advance of 
any final decision to end EAS payments to that community due to 
a determination by the Secretary that providing such service 
requires a subsidy in excess of the per passenger subsidy cap. 
The Secretary shall establish procedures by which each 
community that is notified of an impending loss of subsidy may 
work directly with an air carrier to ensure that the air 
carrier is able to submit a proposal to the Secretary that does 
not require a subsidy in excess of the per passenger subsidy 
cap.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                       RESTORATION OF ELIGIBILITY

H406/S418

House bill
      Section 406 authorizes state and local governments to 
submit a proposal to restore essential air service to a 
location after that location's per passenger subsidy has been 
determined to be over the allowable dollar amount. To qualify 
for restoration of service, the Secretary must determine that 
the rate of subsidy per passenger under the proposal does not 
exceed the allowable amount and the proposal is consistent with 
the legal and regulatory requirements of the essential air 
service program.
Senate bill
      Section 418 is a similar provision.
Conference Substitute
      House and Senate bills modified to include proposals to 
restore essential air service to locations that have been 
determined to have fewer than 10 enplanements per day. To 
qualify for restoration of service, the Secretary must 
determine that the rate of subsidy per passenger under the 
proposal does not exceed the allowable amount, the proposal is 
likely to result in an average of at least 10 enplanements per 
day, and the proposal is consistent with the legal and 
regulatory requirements of the essential air service program.

               ESSENTIAL AIR SERVICE CONTRACT GUIDELINES

H403/S413

House bill
      Section 403 authorizes DOT to provide incentive payments 
to communities for achieving performance goals, and to execute 
long- term EAS contracts. Requires DOT to issue revised 
guidelines incorporating these changes within 18 months after 
the date of enactment. Requires DOT to report to Congress on 
the extent to which the revised guidelines have been 
implemented, and the impact such implementation has had, every 
two years after the guidelines are established.
Senate bill
      Section 413 is a similar provision, but it does not 
contain language on issuing guidance or the report.
Conference Substitute
      House bill modified to extend the deadline for issuance 
of revised guidelines to one year after date of enactment.

                      ESSENTIAL AIR SERVICE REFORM

H404/S415

House bill
      Section 404 authorizes $97.5 million for Essential Air 
Service (EAS) in FY 2011, $60 million in FY 2012, and $30 
million in FY 2013. These amounts are in addition to the $50 
million per year the EAS program is authorized to receive under 
current law from overflight fees collected by the FAA. 
Beginning in FY 2014, section 404 limits the amount EAS would 
receive from overflight fees to the amount needed to provide 
EAS to eligible communities in Alaska and Hawaii. In addition, 
it directs the Secretary of Transportation to take such actions 
as may be necessary to administer the EAS program within the 
amount of funding made available for the program.
Senate bill
      Section 415 authorizes $150 million per year for EAS, 
plus $50 million from overflight fees. It requires any 
overflight fees in excess of $50 million to be obligated for 
various EAS programs, including the code sharing pilot program 
under section 406 of Vision 100 and the alternate air service 
pilot program under Sec. 41745.
Conference Substitute
      Authorizes $143 million for EAS in FY 2012, $118 million 
in FY 2013, $107 million in FY 2014, and $93 million in FY 
2015. In addition, authorizes all overflight fees collected by 
the FAA to be made available, until expended, to carry out the 
essential air service program.

                      SMALL COMMUNITY AIR SERVICE

H405/S416

House bill
      Section 405 adds an additional factor that the Secretary 
of Transportation must consider in selecting communities for 
participation in the Small Community Air Service Development 
(SCASD) program. In addition to the existing criteria for 
participation in the program, the Secretary is required to give 
priority to multiple communities that cooperate to submit a 
regional or multi-state application to improve air service. It 
eliminates the general fund authorization of appropriations for 
the SCASD program, funding it instead through overflight fee 
collections.
Senate bill
      Section 413 extends the authorization for the SCASD 
program at its authorized funding level of $35 million per year 
through FY 2011.
Conference Substitute
      Requires the Secretary to give priority to multiple 
communities that cooperate to submit a regional or multistate 
application to consolidate air service into one regional 
airport. Authorizes the appropriation of $6 million for the 
Small Community Air Service Development program for each of 
fiscal years 2012 through 2015.

     ADJUSTMENTS TO COMPENSATION FOR SIGNIFICANTLY INCREASED COSTS

H406/S418(g)

House bill
      Section 406 permits the Secretary of Transportation to 
increase the rates of compensation payable to air carriers 
under the EAS program to compensate carriers for increased 
aviation fuel costs, without regard to any agreement, without 
requiring the negotiation of existing contracts, and without 
any notice requirement. It removes the 90 day period in which 
the Secretary may continue to pay the amount previously 
contracted for an EAS carrier who has given notice, but has 
been required to continue operating.
Senate bill
      Section 418(g) is a similar provision.
Conference Substitute
      House bill.

      REPEAL OF ESSENTIAL AIR SERVICE LOCAL PARTICIPATION PROGRAM

H407/S419

House bill
      Section 407 eliminates an EAS pilot program in which 
communities assumed a portion of the cost of providing EAS to 
the community.
Senate bill
      Section 419 is a similar provision with minor technical 
differences.
Conference Substitute
      House and Senate bills.

                SUNSET OF ESSENTIAL AIR SERVICE PROGRAM

H408/S420,421

House bill
      Section 408 sunsets the EAS program everywhere except 
Alaska and Hawaii as of October 1, 2013.
Senate bill
      Section 420 imposes limits EAS to locations that average 
ten or more enplanements per day, with an exception for Alaska. 
It authorizes the Administrator to waive this limitation with 
respect to a location if the Administrator determines that the 
reason the location averages fewer than ten enplanements per 
day is not because of inherent issues with the location.
      Section 421 limits EAS to locations that are 90 or more 
miles away from the nearest medium or large hub airport. It 
authorizes the Secretary of Transportation to waive this 
limitation as a result of geographic characteristics resulting 
in undue difficulty accessing the nearest medium or large hub 
airport.
Conference Substitute
      Senate bill, except the requirement that locations be at 
least 90 miles away from the nearest large or medium hub 
airport is deleted; the requirement that locations have at 
least 10 enplanements per day only applies to locations that 
are within 175 miles of a large or medium hub airport; and an 
exception is added for locations in the State of Hawaii and 
Alaska. In addition, instead of sunsetting the program as 
proposed in the House bill, the conference substitute freezes 
the program at the communities currently participating. 
Specifically, except in Alaska and Hawaii, the conference 
agreement limits eligibility for EAS to those communities that, 
at any time from September 30, 2010, to September 30, 2011, 
either received subsidized EAS or were notified by the last 
carrier providing unsubsidized service to the community of the 
carrier's intent to terminate such service.

             Subtitle A--Passenger Air Service Improvements

                          SMOKING PROHIBITION

H421/S--

House bill
      Section 421 prohibits smoking on aircraft in all 
intrastate, interstate, and foreign air transportation for 
scheduled passenger or nonscheduled passenger air 
transportation when a flight attendant is required.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                      MONTHLY AIR CARRIER REPORTS

H422/S402

House bill
      Section 422 requires air carriers that file monthly 
service reports to also file a monthly report on each flight 
diverted and each flight that departs the gate but is cancelled 
before the flight takes off. It requires the Secretary of 
Transportation to compile the information in a single monthly 
report and publish it on a DOT website.
Senate bill
      Section 402 requires air carriers to publish on their 
website, and update monthly, a list of chronically delayed 
flights operated by the air carrier. It requires air carriers 
and authorized entities to disclose the on-time performance for 
a chronically delayed flight when a customer books a flight on 
the carrier's website, prior to actual purchase of a ticket.
Conference Substitute
      House bill.

                          MUSICAL INSTRUMENTS

H424/S713

House bill
      Section 424 requires air carriers to permit passengers to 
carry a small musical instrument, such as a violin, guitar, 
onto the aircraft cabin if it can be stowed safely in a 
suitable baggage compartment in the aircraft cabin or baggage 
or cargo storage compartment if the instrument can be stowed 
properly and there is space for such instruments. Air carriers 
are to permit passengers to bring a large instrument into the 
passenger compartment if the instrument can be stowed properly 
in a seat and the passenger has purchased a seat for the 
instrument. Air carriers must transport as checked baggage 
musical instruments that may not be carried on provided they 
meet certain weight and size limitations (i.e., if the sum of 
length, width, and height does not exceed 150 inches, weigh 
over 165 pounds, or exceed size and weight restrictions for 
that aircraft) and can be properly stowed. It directs, no later 
than two years after the date of enactment, the Secretary of 
Transportation to issue final regulations to carry out this 
section.
Senate bill
      Section 713 is a similar provision, but it does not 
specify that passengers carrying musical instruments would be 
charged fees for that luggage. There is no deadline for the 
rulemaking to be completed by, but it includes a mandate to 
require carrier participation.
Conference Substitute
      House bill modified to specify that passengers carrying 
musical instruments are subject to the same baggage fees 
assessed to all other types of carry-on baggage if a seat is 
not purchased for that instrument.

                EXTENSION OF COMPETITIVE ACCESS REPORTS

H--/S705

House bill
      No similar provision.
Senate bill
      Section 705 makes the requirement for air carriers to 
file competitive access reports permanently by eliminating the 
current sunset provision. Current law requires large and medium 
hub airports to file semi-annual competition disclosure reports 
with DOT before receiving an AIP grant if the airport was 
unable to accommodate an airline request for facility access. 
The report must explain the reason for the lack of 
accommodation and time frame for accommodation.
Conference Substitute
      Senate bill modified to the length of the bill.

               AIRFARES FOR MEMBERS OF THE ARMED SERVICES

H426/S433

House bill
      Section 426 expresses the Sense of Congress that each 
domestic air carrier should seek to provide active duty members 
of the Armed Services who are traveling on leave or liberty at 
their own expense with: reduced air fares that are comparable 
to the lowest airfare for ticketed flights, and that eliminate 
to the maximum extent possible advanced purchase requirements; 
no baggage and excess weight fees, or reduced fees; flexible 
terms that allow members to purchase, modify, or cancel tickets 
without time restrictions, and to waive fees (including baggage 
fees), ancillary costs, or penalties; and proactive measures to 
ensure that all airline employees are trained in the policies 
pertaining to members of the Armed Forces who are on leave.
Senate bill
      Section 433 is a similar provision with minor technical 
differences.
Conference Substitute
      House bill.

  REVIEW OF AIR CARRIER FLIGHT DELAYS, CANCELLATIONS, AND ASSOCIATED 
                                 CAUSES

H427/S--

House bill
      Section 427 requires the Inspector General of the 
Department of Transportation (DOT IG) to conduct a review 
regarding air carrier flight delays, cancellations, and 
associated causes, to update its 2000 report, within one year 
of enactment.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                    COMPENSATION FOR DELAYED BAGGAGE

H429/S--

House bill
      Section 429 directs the U.S. Government Accountability 
Office to study delays in the delivery of checked baggage to 
passengers, assess options and examine: the impact of 
establishing minimum standards to compensate a passenger in the 
case of unreasonable delays; take into consideration the 
additional fees for checked baggage that are imposed by many 
air carriers; and how the additional fees should improve a 
carrier's baggage performance. The report must be submitted 
within 180 days of the date of enactment.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

             DOT AIRLINE CONSUMER COMPLAINT INVESTIGATIONS

H431/S403

House bill
      Section 431 directs the Secretary of Transportation to 
investigate consumer complaints regarding: 1) flight 
cancelations; 2) overbooking flights; 3) lost or damaged 
baggage; 4) problems obtaining refunds; 5) incorrect 
information regarding fares; 6) frequent flyer programs; and 7) 
deceptive or misleading advertising.
Senate bill
      Section 403 is a similar provision, but with language 
requiring a budget needs report.
Conference Substitute
      House bill.

              STUDY OF OPERATORS REGULATED UNDER PART 135

H432/S--

House bill
      Section 432 requires the Administrator, along with 
interested parties, to conduct a study of part 135 operators 
within 18 months of enactment, and an update within three 
years, and every two years thereafter.
Senate bill
      No similar provision.
Conference Substitute
      House bill with modification removing the requirement for 
follow up reports every two years.

                USE OF CELL PHONES ON PASSENGER AIRCRAFT

H433/S--

House bill
      Section 433 directs the Administrator to conduct a study 
within four months of enactment on the impact of the use of 
cell phones for voice communications in scheduled flights where 
currently permitted by foreign governments in foreign air 
transportation. The results of the study must be published and 
open to public comment, and a final report must be submitted to 
Congress within nine months of enactment.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

  ESTABLISHMENT OF ADVISORY COMMITTEE FOR AVIATION CONSUMER PROTECTION

H--/S404

House bill
      No similar provision.
Senate bill
      Section 404 requires the establishment of an advisory 
committee for the Secretary of Transportation regarding 
aviation consumer protection. Membership would consist of one 
representative each from an air carrier, airport operator, and 
a state or local government with expertise with consumer 
protection matters, and one nonprofit group with expertise in 
consumer protection matters. It directs the advisory committee 
to report annually on its recommendations on February 1 of each 
of the first two calendar years of enactment.
Conference Substitute
      Senate bill modified to make the provision last the 
length of the bill and removes travel per diem for members of 
the advisory committee.

  DISCLOSURE OF SEAT DIMENSIONS TO FACILITATE THE USE OF CHILD SAFETY 
                           SEATS ON AIRCRAFT

H--/S408

House bill
      No similar provision.
Senate bill
      Section 408 directs the Administrator to prescribe 
regulations, within six months of enactment, to facilitate the 
use of child safety seats on aircraft. The regulations must 
require part 121 air carriers to post on their websites the 
maximum dimensions of a child safety seat that can be used on 
each aircraft operated by the air carrier to enable passengers 
to determine which child safety seats can be used on those 
aircraft.
Conference Substitute
      Senate bill with modified language changing the deadline 
for the regulations from six months to twelve months. The 
conference committee also believes that passengers should be 
made fully aware of the location of final assembly of the 
aircraft on which they fly. Therefore, the committee believes 
the Secretary should require air carriers to position the 
``location of final assembly'' notification immediately below 
the aircraft model number on the front page of the information 
placard.

                           SCHEDULE REDUCTION

H430/S--

House bill
      Section 430 directs the FAA to convene a conference of 
air carriers to voluntarily reduce aircraft operations if the 
FAA determines that operations of those carriers are exceeding 
the hourly maximum departure and arrival rates, and the excess 
operations are likely to have a significant adverse effect on 
the NAS. It authorizes FAA to take action as necessary if there 
is no voluntary agreement to reduce schedules.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified by adding new section specifying that 
the Administrator shall give priority to United States-flagged 
air carriers in permitting additional operations subsequent to 
any voluntary or non-voluntary reduction in operations.

     FLIGHT OPERATIONS AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT

H423/S737

House bill
      Section 423 directs the Secretary of Transportation to 
grant an additional ten beyond-perimeter exemptions (from 24 
under current law to 34) at Washington Reagan National Airport 
(DCA). It increases the number of operations by which 
exemptions may increase operations during any one-hour period 
between 7:00 AM and 9:59 PM, from three to five. The 
Administrator is required to reduce the hourly air carrier slot 
quota at DCA by ten slots in order to grant the additional 
exemptions provided. These reductions are required to be taken 
in the 6:00 AM, 10:00 PM or 11:00 PM hours. Scheduling priority 
is to be given to new entrant air carriers and limited 
incumbent air carriers over operations conducted by air carrier 
grant exemptions. The highest scheduling priority is given to 
beyond-perimeter operations conducted by new entrant air 
carrier and limited incumbent air carriers.
Senate bill
      Section 737 creates additional beyond perimeter 
commercial flights at DCA with 24 beyond-perimeter round trip 
flights (10 to limited incumbents or new entrants and 14 to 
incumbents) would be permitted, and an additional eight could 
be added later if the Secretary of Transportation determines 
that the first 24 did not negatively impact the airport. It 
specifies that if an incumbent carrier that uses a slot for 
service to a large hub airport within the perimeter receives 
one or more the 24 additional beyond-perimeter round trip 
flights authorized by this provision, it must discontinue the 
use of that slot for within-perimeter service and, in place of 
that service, operate beyond-perimeter service. It prohibits 
the Secretary from granting any more than two slot exemptions 
to an air carrier with respect to the same airport, except in 
the case of an airport serving an area with a population of 
more than 1 million. Any carrier receiving an exemption for 
beyond-perimeter service is prohibited from using multi-aisle 
or wide body aircraft, and from selling, trading, leasing, or 
otherwise transferring the rights to its beyond-perimeter 
exemptions, except through a merger or acquisition, and must 
use the slot within 60 days of receiving the exemption. If an 
incumbent carrier that uses a slot for service to a large hub 
airport within the perimeter receives one or more of the eight 
additional exemptions authorized by this provision, it must 
discontinue the use of that slot for within-perimeter service 
and, in place of that service, operate beyond-perimeter 
service. It authorizes Metropolitan Washington Aviation 
Authority (MWAA) to use revenues derived at either DCA or 
Washington Dulles International Airport (IAD) for operating and 
capital expenses (including debt service, depreciation and 
amortization) at the other airport.
Conference Substitute
      House and Senate bills merged to direct the Secretary of 
Transportation to grant 16 exemptions for additional beyond 
perimeter commercial flights at Ronald Reagan Washington 
National Airport (DCA). Of the 16 exemptions created, the 
Secretary shall make eight available to limited incumbent air 
carriers and new entrant air carriers. When allocating such 
exemptions, the Secretary shall consider the extent to which 
the exemptions will provide air transportation with domestic 
network benefits in areas beyond the perimeter; increase 
competition in multiple markets; not reduce travel options for 
communities served by small hub airports and medium hub 
airports within the perimeter; not result in meaningfully 
increased travel delays; enhance options for nonstop travel to 
and from the beyond-perimeter airports that will be served as a 
result of those exemptions; have a positive impact on the 
overall level of competition in the markets that will be served 
as a result of those exemptions; or produce public benefits, 
including the likelihood that the service to airports located 
beyond the perimeter will result in lower fares, higher 
capacity, and a variety of service options.
      The Secretary shall also make available eight slot 
exemptions for other incumbent air carriers qualifying for 
status as a non-limited incumbent carrier at DCA. Each such 
non-limited incumbent air carrier may operate up to a maximum 
of two of the newly authorized slot exemptions. Each such non-
limited incumbent air carrier, prior to exercising an exemption 
made available shall discontinue the use of a slot for service 
between DCA and a large hub airport within the perimeter, and 
operate, in place of such service, service between DCA and an 
airport located beyond the perimeter. Each such non-limited 
incumbent air carrier shall be entitled to return of the slot 
by the Secretary if use of the exemption made available is 
discontinued; shall have sole discretion concerning the use of 
an exemption including the initial or any subsequent beyond 
perimeter destinations to be served; and shall file a notice of 
intent with the Secretary and subsequent notices of intent, 
when appropriate, to inform the Secretary of any change in 
circumstances concerning the use of any exemption. Such notices 
of intent shall specify the beyond perimeter destination to be 
served and the slots the carrier shall discontinue using to 
serve a large hub airport located within the perimeter. Each 
such non-limited incumbent air carrier operating an exemption 
may not operate a multi-aisle or widebody aircraft in 
conducting such operations and shall be prohibited from 
transferring the rights to its beyond-perimeter exemptions.
      The Secretary shall afford a scheduling priority to 
operations conducted by new entrant air carriers and limited 
incumbent air carriers over operations conducted by other air 
carriers granted additional slot exemptions; a scheduling 
priority to slot exemptions currently held by new entrant air 
carriers and limited incumbent air carriers for service to 
airports located beyond the perimeter to the extent necessary 
to protect viability of such service; and consider applications 
from foreign air carriers that are certificated by the 
government of Canada if such consideration is required by the 
bilateral aviation agreement between the U.S. and Canada.
      The exemptions granted by the Secretary may not be for 
operations between the hours of 10:00 p.m. and 7:00 a.m.; and 
may not increase the number of operations at DCA in any 1-hour 
period during the hours between 7:00 a.m. and 9:59 p.m. by more 
than five operations. A non-limited incumbent air carrier 
utilizing an exemption for an arrival after 10:01 p.m. must 
discontinue use of an existing slot during the same time period 
the arrival exemption is operated.
      In determining a limited incumbent, the Secretary shall 
consider any air carrier operating 40 or fewer slots at DCA. 
The term `slot' shall not include slot exemptions; slots 
operated by an air carrier under a fee-for-service arrangement 
for another air carrier, if the air carrier operating such 
slots does not sell flights in its own name, and is under 
common ownership with an air carrier that seeks to qualify as a 
limited incumbent and that sells flights in its own name; or 
slots held under a sale and license-back financing arrangement 
with another air carrier, where the slots are under the 
marketing control of the other air carrier. The Secretary shall 
prohibit the transfer of exemptions except through an air 
carrier merger or acquisition. The definition of airport 
purposes at the Metropolitan Washington Aviation Authority 
(MWAA) shall include a business or activity not inconsistent 
with the needs of aviation that has been approved by the 
Secretary.

                   PASSENGER AIR SERVICE IMPROVEMENTS

H425/S401

House bill
      Section 425 requires that within 90 days of enactment, 
air carriers and each operator of a medium- or large-hub 
airport, file emergency contingency plans with the Secretary of 
Transportation for review and approval. Air carriers are 
required to update their plans every three years and airports 
must update every five years. The Secretary is also directed to 
establish a toll-free consumer complaints hotline telephone 
number for use of passengers. The Secretary is instructed to 
take action to notify the public of the DOT's consumer 
complaints hotline telephone number and related website. Air 
carriers providing scheduled air service are required to 
include on their website consumer complaints hotline 
information for DOT and the air carrier as well as a hotline 
telephone number on carrier signs displayed at airport ticket 
counters, and on any electronic confirmation of the purchase of 
a passenger ticket. It directs the Secretary to establish a 
website that contains a listing of the countries that may 
require a U.S. or foreign air carrier to treat an aircraft 
passenger cabin with insecticides prior to a flight to that 
country, or to apply an aerosol insecticide in an aircraft 
cabin used for such a flight when the cabin is occupied with 
passengers. Air carriers are required to update their emergency 
contingency plans every three years, and airport operators 
every five years.
Senate bill
      Section 401 requires air carriers and airport operators 
to develop contingency plans to address situations in which the 
departure of a flight is substantially delayed while passengers 
are confined to an aircraft. Each plan would have to be 
submitted to the DOT for review and approval by the Secretary 
of Transportation, and would be required to address minimum 
standards established by the Department. At a minimum, the 
plans for air carriers must outline how the airline will 
guarantee that the passengers are provided: a) adequate food, 
potable water, and restroom facilities; b) cabin ventilation 
and comfortable cabin temperatures, and; c) access to necessary 
medical treatment. It specifies that airlines must allow 
passengers to deplane if three hours have elapsed since the 
doors have closed and the aircraft has not departed, or the 
aircraft has been landed for three hours but passengers have 
been unable to deplane. Exceptions to the deplane requirements 
would exist only when a pilot reasonably believes that the 
aircraft will depart within 30 minutes, or if the pilot 
believes that deplaning the passengers would jeopardize 
passenger security or safety. Airport operators would also be 
required to submit a plan to the DOT for approval that provides 
for the deplanement of passengers following extended tarmac 
delays. The Secretary would also be required to perform 
periodic reviews of the air carrier and airport operator plans, 
and would be authorized to impose civil penalties on air 
carriers or airport operators that fail to meet the 
requirements of such plans. It directs the DOT to create a 
consumer complaint hotline telephone number.
Conference Substitute
      House and Senate bills merged and modified. The modified 
section includes House language requiring emergency contingency 
plans by air carriers and modified to include large, medium, 
small, and non-hub airports. Included in the section is 
modified language that would give passengers the option to 
deplane and return to airport terminal when there is an 
excessive tarmac delay, except if there is a safety, security 
or disruption of airport operations causes that would result 
from deplanement. The Secretary of Transportation is to 
determine the length of a tarmac delay that would be deemed 
``excessive''. Lastly, the section includes House language on 
consumer complaints and use of pesticides in a passenger 
aircraft.

                      DENIED BOARDING COMPENSATION

H428/S--

House bill
      Section 428 requires the Secretary of Transportation to 
evaluate, within six months of enactment and every two years 
thereafter, the amount provided for denied boarding 
compensation and issue a regulation to adjust such compensation 
as necessary.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill. The Department of Transportation is already 
conducting a rulemaking on this subject.

                      DISCLOSURE OF PASSENGER FEES

H--/S405

House bill
      No similar provision.
Senate bill
      Section 405 directs the Secretary of Transportation to 
complete a rulemaking that requires air carriers to provide the 
public a list of charges, besides airfare (e.g., baggage fees 
and meal fees), that the air carrier may be imposing on 
passengers. The Secretary would be authorized to require an air 
carrier to make the list of fees public, and the list must be 
updated every 90 days unless there is no increase in the amount 
or type of fees being imposed.
Conference Substitute
      House bill.

 DISCLOSURE OF AIR CARRIERS OPERATING FLIGHTS FOR TICKETS SOLD FOR AIR 
                             TRANSPORTATION

H--/S406

House bill
      No similar provision.
Senate bill
      Section 406 requires the Office of Aviation Consumer 
Protection in DOT to establish rules to ensure that all 
consumers are able to easily and fairly compare airfares and 
charges paid when purchasing tickets for air transportation, 
including taxes and fees. This section requires taxes and fees 
be disclosed on the website prior to the purchaser providing 
personal information and makes failure to disclose an ``unfair 
and deceptive practice.''
Conference Substitute
      Senate provision dropped because it is included in P.L. 
111-216, the Airline Safety and Federal Aviation Administration 
Extension Act of 2010.

 NOTIFICATION REQUIREMENTS WITH RESPECT TO THE SALE OF AIRLINE TICKETS

H--/S407

House bill
      No similar provision.
Senate bill
      Section 407 requires the Office of Aviation Consumer 
Protection and Enforcement within the DOT to establish rules to 
clarify what must be disclosed in an aviation fare quote in 
order for consumers to easily and fairly compare airfares and 
charges among carriers. It directs the Secretary of 
Transportation, in consultation with the FAA, to prescribe such 
regulations as may be necessary.
Conference Substitute
      House bill.

                        EAS CONNECTIVITY PROGRAM

H--/S411

House bill
      No similar provision.
Senate bill
      Section 411 directs the Secretary of Transportation to 
establish a program under which the DOT shall require, in up to 
ten communities, that air carriers participating in Essential 
Air Service (EAS), and major air carriers serving large hub 
airports, participate in code-share arrangements, consistent 
with normal industry practice, whenever and wherever the 
Secretary determines that such multiple code-sharing 
arrangements would improve air transportation services.
Conference Substitute
      No provision.

  EXTENSION OF FINAL ORDER ESTABLISHING MILEAGE ADJUSTMENT ELIGIBILITY

H--/S412

House bill
      No similar provision.
Senate bill
      Section 412 extends a provision that specifies that the 
most commonly used route between an eligible place and the 
nearest medium hub airport or large hub airport is to be used 
to measure the highway mileage considered in reviewing any 
action to eliminate compensation for EAS to such place, or 
terminate the location's compensation eligibility for such 
service. It would further terminate any such final order on 
September 30, 2011.
Conference Substitute
      Extends to September 30, 2015, the date on which the 
final order issued under section 409 of Vision 100 shall 
terminate.

                   CONVERSION OF FORMER EAS AIRPORTS

H--/S414

House bill
      No similar provision.
Senate bill
      Section 414 requires the Secretary of Transportation to 
establish a program to provide general aviation conversion 
funding for airports serving eligible places that the Secretary 
has determined no longer qualify as eligible places for EAS 
subsidies.
Conference Substitute
      No provision.

    USE OF CERTAIN LANDS AT LAS VEGAS MCCARRAN INTERNATIONAL AIRPORT

H--/S434

House bill
      No similar provision.
Senate bill
      Section 434 authorizes Clark County, Nevada, to permit 
the use of certain lands in the Las Vegas McCarran 
International Airport Environs Overlay District for transient 
lodging and associated facilities. This provision prohibits the 
construction of facilities that would constitute a hazard to 
air navigation, result in an increase to minimum flight 
altitudes, or otherwise pose a significant adverse impact on 
airport or aircraft operations.
Conference Substitute
      House bill.

          TITLE V--ENVIRONMENTAL STREAMLINING AND STEWARDSHIP

                     OVERFLIGHTS OF NATIONAL PARKS

H501/S709

House bill
      Section 501 exempts operators in parks with 50 or fewer 
annual air tour flights from the statutory permitting 
requirement, with a provision for the National Park Service 
(NPS) director to withdraw an exemption on a park-specific 
basis if necessary to protect park resources or visitor 
experiences. It allows NPS and FAA to enter into a voluntary 
agreement with a commercial air tour operator as an alternative 
to creation of an air tour management plan. FAA and NPS must 
solicit public comments and must consult with occupants of 
affected tribal lands before entering into a voluntary 
agreement. It provides that a voluntary agreement may require 
payment of overflight fees. The FAA and NPS are permitted to 
terminate a voluntary agreement if: 1) NPS finds the agreement 
no longer protects park resources; or 2) FAA determines 
operations under the agreement adversely affect safety or the 
national aviation system. It permits modifications to interim 
operating authority, and allows a grant of interim authority to 
a new entrant operator, if: 1) the operator provides adequate 
information to NPS and FAA; 2) FAA determines modification 
would not adversely affect safety or the national aviation 
system; and 3) NPS determines modification would not adversely 
affect park resources. Commercial air tour operators must 
report the number of commercial air tours over parks.
Senate bill
      Section 709 allows air tour overflights over a national 
park when a voluntary agreement has been reached between the 
operator and the appropriate representative of the national 
park. This section provides a waiver from the general rule 
prohibiting tour operations over national parks for national 
parks that have 100 or fewer air tour overflights each year. 
The Secretary of the Interior is instructed to assess a fee on 
commercial air tour operators operating over a national park to 
be used to fund the development of air tour management plans. 
It prescribes penalties for operators that do not pay this fee. 
This section provides the Director of NPS with flexibility in 
determining how to manage air tours at Crater Lake National 
Park.
Conference Substitute
      House bill modified to include language on flexibility 
for Crater Lake National Park.

                       STATE BLOCK GRANT PROGRAM

H502/S209

House bill
      Section 502 requires the issuance of guidance for 
carrying out the AIP State Block Grant Program (SBGP) rather 
than regulations. It adds to required standards a State must 
agree to meet in order to be eligible for a grant under the 
program with: National Environmental Policy Act (NEPA) of 1969 
standards, state and local environmental policy acts, executive 
orders, agency regulations and guidance, and other federal 
environmental requirements. Furthermore, it adds a provision 
that requires any federal agency, except the FAA, that is 
responsible for issuing an approval, license or permit to 
ensure compliance with a federal environmental requirement 
applicable to a project to be carried out by a State using 
funds from a block grant must: 1) coordinate and consult with 
the State; 2) use the environmental analysis prepared by the 
State for the project; and 3) supplement such analysis as 
necessary.
Senate bill
      Section 209 codifies current practice that State 
participants in the State Block Grant Program have 
responsibility and authority to comply with applicable 
environmental requirements for projects at non-commercial 
service airports within the purview of the SBGP. The FAA 
administers the SBGP by authorizing participating states once a 
year to receive a block of funds for any eligible non-primary 
airport project. This section would make a minor change to 49 
U.S.C. section 47128(a) by replacing the term ``regulations'' 
with ``guidance'' because the FAA has issued guidance in the 
form of the AIP Handbook, 5100.38, to implement its airport 
improvement program. It establishes a pilot program for up to 
three States that are currently not in the program to 
participate in the program.
Conference Substitute
      House bill.

             AIRPORT FUNDING OF SPECIAL STUDIES OR REVIEWS

H503/S210

House bill
      Section 503 authorizes the FAA to accept funds from 
airport sponsors to conduct: 1) special environmental studies 
for ongoing federally-funded airport projects; 2) special 
studies to support approved airport noise compatibility 
measures or environmental mitigation commitments in an agency 
record of decision or a finding of no significant impact; and 
3) a review and completion of environmental activities 
associated with new or amended flight procedures, including 
performance-based navigation procedures and area navigation 
procedures.
Senate bill
      Section 210 is a similar provision.
Conference Substitute
      House bill.

         GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT PROCEDURES

H506/S211

House bill
      Section 506 authorizes grants to airport operators to 
assist in completing environmental review and assessment 
activities for proposes to implement flight procedures that 
have been approved for airport noise compatibility planning 
purposes. It permits the Administrator to accept funds from an 
airport sponsor, including funds provided in noise 
compatibility planning grants, to hire additional staff or 
consultants to facilitate timely review and competition of 
environmental activities associated with the proposed changes 
in flight procedures. Funds received under this section shall 
be credited as offsetting collections to the account that 
finance the activities and services for which the funds are 
accepted; shall be available for expenditure only to pay the 
costs of activities and services for which the funds are 
accepted; and shall remain available until expended.
Senate bill
      Section 211 is a similar provision, but it specifies that 
funds received under this authority are exempt from the 
procedures applicable to gifts received by the Administrator.
Conference Substitute
      House bill.

      DETERMINATION OF FAIR MARKET VALUE OF RESIDENTIAL PROPERTIES

H507/S--

House bill
      Section 507 requires the Secretary of Transportation to 
ensure that an appraisal for fair market value of any property 
to be acquired disregards any decrease or increase in the value 
caused by the project for which the property is being acquired 
or by the likelihood that the property would be acquired. It 
directs that physical deterioration within reasonable control 
of the owner should be considered.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

  PROHIBITION ON OPERATING CERTAIN AIRCRAFT WEIGHING 75,000 POUNDS OR 
              LESS NOT COMPLYING WITH STAGE 3 NOISE LEVELS

H508/S710

House bill
      Section 508 requires that all civil subsonic jet aircraft 
under 75,000 pounds must meet Stage 3 noise levels within the 
48 contiguous states by December 31, 2016, with some exceptions 
for the following types of temporary operations: 1) to sell, 
lease or use the aircraft outside the 48 contiguous States; 2) 
to scrap the aircraft; 3) to obtain modifications to the 
aircraft to meet Stage 3 noise levels; 4) to perform scheduled 
heavy maintenance or significant modifications at an overseas 
maintenance facility; 5) to deliver the aircraft to an operator 
leasing the aircraft from the owner or return the aircraft to 
the lessor; 6) to prepare, park, or store aircraft in 
anticipation of above activities; 7) to provide transport of 
persons or goods in an emergency situation; and 8) to divert 
the aircraft to an alternative airport on account of weather, 
or safety reasons. It authorizes the Secretary of 
Transportation to prescribe regulations as necessary.
Senate bill
      Section 710 is a similar provision with minor technical 
differences, including a different deadline set at December 31, 
2014. Airports are allowed to opt-out of this prohibition, at 
which time the Secretary of Transportation will post notices on 
its website or another place easily accessible to the public.
Conference Substitute
      House bill modified, moving the deadline to December 31, 
2015.

           AIRCRAFT DEPARTURE QUEUE MANAGEMENT PILOT PROGRAM

H509/S--

House bill
      Section 509 directs the Secretary of Transportation to 
carry out a pilot program at up to five public-use airports to 
design, develop, and test new air traffic flow management 
technology to better manage the flow of aircraft on the ground 
and reduce ground holds and idling times for aircraft. In 
selecting participating airports, the Secretary must give 
priority consideration to airports at which improvements in 
ground control efficiencies are likely to achieve the greatest 
fuel savings or air quality or other environmental benefits, as 
measured by the amount of reduced fuel, reduced emissions, or 
other environmental benefits. No more than $2.5 million may be 
expended at any single public-use airport.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

    HIGH-PERFORMANCE, SUSTAINABLE, AND COST-EFFECTIVE ATC FACILITIES

H510/S--

House bill
      Section 510 requires the implementation of sustainable 
practices for the incorporation of energy-efficient design, 
equipment, systems and other measures in the construction and 
major renovation of air traffic control facilities to the 
maximum extent practicable.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                           SENSE OF CONGRESS

H511/S--

House bill
      Section 511 expresses Sense of Congress that the European 
Union (EU) should not extend its emissions trading proposal to 
international civil aviation operations without working through 
International Civil Aviation Organization (ICAO) and other 
relevant air services agreements, and that the EU should work 
with ICAO to develop a consensual approach to addressing 
aircraft greenhouse gas emissions. It expresses the Sense of 
Congress that the U.S. Government should use all political, 
diplomatic, and legal tools at their disposal to ensure that 
the EU's emission trading scheme is not applied to aircraft 
registered by the U.S. or the operators of those aircraft, 
including the mandates that U.S. carriers provide emissions 
data to and purchase emissions allowances from or surrender 
emissions allowances to the EU Member states.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                       AVIATION NOISE COMPLAINTS

H512/S--

House bill
      Section 512 requires owners or operators of a large hub 
airport to publish a telephone number to receive noise 
complaints on the airport's website within 90 days of 
enactment. Any owner or operator who receives 25 or more 
complaints per year will be required to submit an annual report 
to the FAA regarding the number of complaints and a summary of 
the nature of the complaints, which the Administrator must make 
available to the public electronically.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to remove the annual reporting 
requirement.

         NEXTGEN ENVIRONMENTAL EFFICIENCY PROJECTS STREAMLINING

H503/S--

House bill
      Section 503 incorporates NextGen environmental efficiency 
projects into projects that are subject to streamlined 
environmental review and given high priority in environmental 
review. These include: 1) an airport capacity enhancement 
project at a congested airport; and 2) a NextGen environmental 
efficiency project at the 35 largest airports (i.e., OEP 
airports) or any congested airports. It also clarifies the 
jurisdictional agencies and the lead agency responsibility for 
these projects. Defines ``NextGen environmental efficiency 
project'' as a NextGen project that develops and certifies 
performance-based navigation procedures; or develops other 
environmental mitigation projects the Secretary of 
Transportation may designate as facilitating a reduction in 
noise, fuel consumption, or emissions from air traffic 
operations.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

                      NOISE COMPATIBILITY PROGRAMS

H505/S--

House bill
      Section 505 requires operators applying for noise 
compatibility programs to state the measures they have taken or 
propose to take to reduce existing noncompatible uses and 
prevent introducing additional noncompatible uses in the area. 
It adds as one of the measures, conducting comprehensive land 
use planning jointly with neighboring local jurisdictions for 
community redevelopment in an area in which land or other 
property interests have been acquired by the operator, to 
encourage and enhance redevelopment opportunities that reflect 
zoning and uses that will prevent the introduction of 
additional incompatible uses and enhance redevelopment 
potential.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

          ENVIRONMENTAL MITIGATION DEMONSTRATION PILOT PROGRAM

H--/S213

House bill
      No similar provision.
Senate bill
      Section 213 authorizes the Secretary of Transportation to 
carry out up to six environmental mitigation projects at 
public-use airports and make grants under special apportionment 
funding for these demonstrations. To be eligible for the pilot 
program, an airport would be required to be open to the public, 
with priority consideration given to projects that would 
achieve the greatest reductions in aircraft noise, airport 
emissions, or airport water quality impacts. The federal 
government would be limited to providing 50 percent of the cost 
for the projects and limited to a total amount per project of 
$2.5 million.
Conference Substitute
      House bill.

            PILOT PROGRAM FOR ZERO EMISSION AIRPORT VEHICLES

H--/S609

House bill
      No similar provision.
Senate bill
      Section 609 requires the Secretary of Transportation to 
establish a pilot program to foster the acquisition and use of 
zero emission vehicles on airports. Priority is given to those 
airports in non-attainment areas and where the greatest air 
quality benefits will be achieved. In 18 months, the Secretary 
of Transportation shall report to Congress on the effectiveness 
of the pilot program.
Conference Substitute
      Senate bill modified to: change ``shall'' to ``may'' when 
directing the Secretary of Transportation to establish a pilot 
program; allowing public-use airports to be eligible in the 
pilot program; permitting the Secretary of Transportation to 
consider applications from public-use airports not in the 
prescribed areas if there is a shortage of applicants; and 
allowing participants to use university transportation centers. 
New language is added that: establishes performance measures; 
creates assessments of the data collected used in the program; 
and makes a technical change.

       INCREASING THE ENERGY EFFICIENCY OF AIRPORT POWER SOURCES

H--/S610

House bill
      No similar provision.
Senate bill
      Section 610 requires the Secretary of Transportation to 
establish a program to encourage airport operators to assess 
their energy requirements and identify ways to reduce emissions 
and increase energy efficiency. The Secretary of Transportation 
may make grants to eligible airports to acquire or construct 
equipment and infrastructure to reduce emissions and improve 
energy efficiency.
Conference Substitute
      Senate bill modified by removing references to ``reducing 
harmful emissions'' and makes minor technical corrections.

                  TITLE VI--EMPLOYEES AND ORGANIZATION

                    FAA PERSONNEL MANAGEMENT SYSTEM

H601/S313

House bill
      Section 601 reforms the process by which the FAA resolves 
labor disputes with employee unions arising in the collective 
bargaining process. It requires the FAA and employee 
representatives to use the services of the Federal Mediation 
and Conciliation Service (FMCS). If they are unable to come to 
an agreement on labor issues, or, by mutual agreement, they may 
adopt alternate procedures to resolve disputes. If the 
mediation is unsuccessful, the parties must submit their issues 
to the Federal Service Impasses Panel (FSIP) that will assist 
the parties in resolving the dispute by asserting jurisdiction 
and ordering binding arbitration by a private arbitration board 
of three members. The board will result from Executive Director 
of the FSIP will request a list of 15 names from the Director 
of the FMCS, the parties will select one arbitrator each from 
the list, and the two arbitrators selected with then choose the 
third. The arbitration board must render a decision within 90 
days after the date of its appointment, and take into account 
the following factors: 1) the effect of its decision on the 
FAA's ability to attract and retain a qualified workforce; 2) 
the effect of its decision on the FAA budget; 3) the effect of 
its decision on other FAA employees; and 4) any other factors 
that would assist the board in reaching a fair resolution. Upon 
reaching a voluntary agreement or at the conclusion of the 
binding arbitration, the final agreement will be subject to 
ratification by the exclusive bargaining representative of the 
employees, if so requested by the bargaining representative. 
The final agreement must also be approved by the head of the 
agency.
Senate bill
      Section 313 is a similar provision, but it specifies that 
jurisdiction over enforcement claims is limited to the U.S. 
District Court for the District of Columbia.
Conference Substitute
      House bill modified by deleting language directing the 
board to take into consideration ``the effect of its 
arbitration decisions on other Federal Aviation Administration 
employees'' in making decisions.

                    PRESIDENTIAL RANK AWARD PROGRAM

H602/S307

House bill
      In 1996, the FAA reformed its personnel system under 
special authority provided by Congress (now codified under 49 
U.S.C. section 40122), which exempted the FAA from many 
requirements of the federal government's personnel system, 
including the Presidential Rank Award Program. Section 602 
would change the exemption and, through an amendment to 49 
U.S.C. section 40122, allow the FAA's executives and senior 
professionals to participate in the program.
Senate bill
      Section 307 is the same provision.
Conference Substitute
      House bill.

                  COLLEGIATE TRAINING INITIATIVE STUDY

H608/S--

House bill.
      Section 608 requires the U.S. Government Accountability 
Office to conduct a study on training options for graduates of 
the Collegiate Training Initiative, and submit the study to 
Congress within six months of enactment.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                      FRONT LINE MANAGER STAFFING

H610/S716

House bill
      Section 610 requires the Administrator to commission an 
independent study on front-line manager staffing requirements 
in air traffic control facilities, and submit the final report 
to Congress within nine months of enactment. Some 
considerations to take into account are: managerial tasks; 
number of supervisory positions; coverage requirements in 
relation to traffic demands; facility type; complexity of 
traffic and managerial responsibilities; and proficiency and 
training requirements.
Senate bill
      Section 716 requires the Administrator within 45 days 
after enactment to study air traffic control front line manager 
staffing requirements and submit any determinations made as a 
result of the study to the Congress within six months after 
enactment.
Conference Substitute
      House bill.

                  FAA TECHNICAL TRAINING AND STAFFING

H603/S708(a),(b)

House bill
      Section 603 requires the Administrator to conduct a study 
on the adequacy of FAA's technical training strategy and 
improvement plan for FAA transportation systems specialists. 
The plan must include: recommendations to improve technical 
training strategy and improvement planning; a description of 
actions having been undertaken; and recommendations regarding 
cost-effective approaches to training. The FAA is to report to 
Congress within one year of enactment. It directs the 
Administrator to contract with the National Academy of Sciences 
within 90 days of enactment to conduct a study on the 
assumptions and methods FAA uses to estimate staffing needs for 
FAA transportation systems specialists and to ensure proper 
maintenance and certification in the most cost-effective 
manner. The Academy must submit its report to Congress one year 
after contracted.
Senate bill
      Section 708(a) and (b) similar provisions but it requires 
the U.S. Government Accountability Office (GAO) to study FAA 
Airway Transportation Systems Specialists training and report 
to Congress within a year of enactment. It includes air traffic 
controllers and engineers as part of the study; and, the 
Academy must report to Congress on its study 24 months after 
the date of execution of the contract for the study.
Conference Substitute
      House bill modified removing language requiring the study 
to be done in the most cost effective manner. The modified 
provision directs the National Academy of Sciences, when 
conducting the study on the assumptions and methods used by FAA 
to estimate staffing needs for FAA systems specialists, to 
consult with the exclusive bargaining representative of systems 
specialists. Additionally, language was added requiring the 
National Academy of Sciences to ``include recommendations for 
objective staffing standards that maintain the safety of the 
national airspace.''

                        SAFETY CRITICAL STAFFING

H604/S708(c),(d)

House bill
      Section 604 requires the Administrator to implement, to 
the extent practicable and in the most cost-effective manner, 
the staffing model for aviation safety inspectors by October 1, 
2011, following the recommendations outlined in the ``Staffing 
Standards for Aviation Inspectors'' report issued by the 
National Academy of Sciences in 2007. The FAA is required to 
consult with interested parties, including aviation safety 
inspectors, and submit the staffing model to Congress on an 
annual basis.
Senate bill
      Section 708(c) and (d) directs the FAA to increase 
inspector staffing to levels in its staffing model. The 
Administrator is required to develop a staffing model for 
aviation safety inspectors, but differs from the House in that 
it allows 12 months from the date of enactment, development of 
a staffing model, but does not require the Administrator to 
follow the Academy's recommendations, and requires inspector 
staffing levels to be at least at the levels indicated in the 
staffing model. It specifies that no later than 180 days after 
enactment, the Administrator shall submit a report to Congress 
on the future of flight service stations in Alaska. The report 
will include: 1) an analysis of the number of flight service 
specials needed; 2) training needed and need for formal 
training and hiring program; 3) a schedule for necessary 
inspections, 4) upgrades and modernization of stations and 
equipment; and 5) a description of interaction between flight 
service stations operated by FAA and those operated by 
contractors.
Conference Substitute
      House bill modified to require the FAA to consult with 
the exclusive bargaining representative for aviation safety 
inspectors when implementing the staffing model. Additionally, 
the date of the report was changed from October 1 of each year 
to January 1 of each year.

  AIR TRAFFIC CONTROL SPECIALIST QUALIFICATION TRAINING AND SCHEDULING

H606/S--

House bill
      Section 606 authorizes the Administrator to appoint 
qualified air traffic control (ATC) specialist candidates for 
placement directly in ATC facilities. ATC specialists will 
receive the same benefits and compensation as any other 
developmental controller. Within 18 months after enactment, the 
FAA will submit to Congress a report that evaluates the 
effectiveness of the ATC specialist qualification training. If 
the Administrator determines that ATC specialists are more 
qualified in carrying out duties than ATC specialists hired 
from general public, the Administrator shall increase the 
number of appointments of candidates with such certification. 
It includes reimbursement for travel expenses associated with 
certifications from education entity that provided the 
training.
Senate bill
      No similar provision.
Conference Substitute
      House modified to change the due date of the required 
report from 18 months after enactment to two years after 
enactment.

                  FAA AIR TRAFFIC CONTROLLER STAFFING

H605/S708

House bill
      Section 605 directs the FAA to enter into an arrangement, 
within 90 days, with the National Academy of Sciences to 
conduct a study of the air traffic controller standard used by 
the FAA to estimate staffing needs for FAA air traffic 
controllers to ensure the safe operation of the NAS in the most 
cost-effective manner. The study must include examination of 
representative information on productivity, human factors, 
traffic activity, and improved technology on ATC, as well as an 
examination of recent Academy reviews of models from MITRE, and 
consideration of Administration's current and estimated 
budgets. The Academy is required to consult employee groups and 
industry representative in conducting the study. The Academy 
must transmit the study to Congress within two years of 
enactment.
Senate bill
      Section 708 is a similar provision, but it includes 
Airway Transportation Systems Specialists and engineers as part 
of the study.
Conference Substitute
      House bill modified to require the National Academy of 
Sciences to consult with the exclusive bargaining 
representative of air traffic controllers in conducting the 
study.

       ASSESSMENT OF FAA AIR TRAFFIC CONTROLLER TRAINING PROGRAMS

H607/S516

House bill
      Section 607 requires the Administrator to conduct a study 
to assess the adequacy of training programs for air traffic 
controllers, including the FAA's technical training strategy 
and improvement plan, and submit the study to Congress within 
six months of enactment. The study will include a review of 
current training systems, an analysis of competencies required 
of air traffic control for successful performance, an analysis 
of competence projected to be required in NextGen, an analysis 
of various training approaches, recommendations to improve 
current training system, and the most cost effective approach.
Senate bill
      Section 516 requires FAA to conduct a comprehensive 
review of its Academy and facility training efforts, and 
establish standards to identify the number of developmental 
controllers that can be accommodated by each facility.
Conference Substitute
      House and Senate bills modified and merged. This section 
includes Senate and House language, with language added 
requiring the Inspector General of the Department of 
Transportation to conduct an assessment of FAA's air traffic 
controller scheduling practices.

                        FAA FACILITY CONDITIONS

H609/S323

House bill
      Section 609 requires the U.S. Government Accountability 
Office to conduct a study of the conditions of a sampling of 
FAA facilities across the U.S., including towers, centers, 
offices and Terminal Radar Approach Control Facilities 
(TRACONs), as well as reports from employees relating to health 
conditions resulting from exposure to mold, asbestos, poor air 
quality, radiation and facility-related hazards in FAA 
facilities; conditions of facilities that could interfere with 
employee's ability to perform their duties; the ability of 
managers and supervisors to promptly document and seek 
remediation for unsafe facility conditions; whether employees 
of the Administration who report facility-related illness are 
treated appropriately; and utilization of scientific 
remediation techniques to mitigate hazardous conditions. Its 
findings must be submitted to the FAA and Congress. Based on 
the results of the GAO study, the GAO is directed to make 
recommendations on which facilities are in need of immediate 
attention, and assist the Administration in making programmatic 
changes so that aging facilities do not deteriorate to unsafe 
levels. The GAO is required to submit its report to Congress 
within one year of enactment.
Senate bill
      Section 323 directs the FAA to create a task force on air 
traffic control (ATC) facility conditions. This task force must 
be composed of 11 members (7 appointed by the Administrator and 
four appointed by employees' unions). Four members are required 
to have expertise in hazardous building conditions and two 
members must have expertise in rehabilitation of aging 
buildings. This task force will have the power to obtain 
official data. The task force's duties would include studying: 
1) the conditions of all ATC facilities; 2) reports from 
employees; 3) whether employees who reported illness were 
treated fairly; 4) utilization of remediation techniques; and 
5) resources allocated to facility maintenance and renovation. 
Also, the task force would be required to make recommendations 
necessary to ensure that: 1) facilities needing the most 
immediate attention are prioritized; 2) the Administration is 
using scientifically approved remediation techniques; and 3) 
ATC facilities do not deteriorate to unsafe levels. The task 
force also must submit a report to Congress and the 
Administrator regarding its recommendations and activities 
within 60 days. The Administrator would be required to submit a 
plan and timeline to implement the task force's recommendations 
within 30 days after receiving the task force's report.
Conference Substitute
      House bill.

                          TECHNICAL CORRECTION

H--/S707

House bill
      No similar provision.
Senate bill
      Section 707 provides technical corrections to guarantee 
that the Merit Systems Protection Board has jurisdiction to 
investigate claims made against FAA, and has the enforcement 
ability at the agency that it does for all other federal 
employees.
Conference Substitute
      Senate bill.

                                BACK PAY

H--/S707(4)(J)

House bill
      No similar provision.
Senate bill
      Section 707(4) (J) restores application of the Back Pay 
Act to FAA employees prospectively (i.e., does not have 
retroactive application to previously decided MSPB cases).
Conference Substitute
      House bill.

                        FAMILY MEDICAL LEAVE ACT

H--/S707(4)(K)

House bill
      No similar provision.
Senate bill
      Section 707(4)(K) restores protections of Title II of the 
Family and Medical Leave Act (FMLA) for FAA employees. In 
contrast with Title I, there is no individual right of action 
and employee makes determination as to start of FMLA leave.
Conference Substitute
      House bill.

                     TITLE VII--AVIATION INSURANCE

                           GENERAL AUTHORITY

H701/S701(c)

House bill
      Section 701 requires the Secretary of Transportation to 
extend the current aviation war risk insurance policies until 
September 30, 2013, and authorizes the Secretary to extend them 
until December 31, 2013. After December 31, 2021, coverage for 
the risks provided by the extended policies shall be provided 
in an airline industry sponsored risk-sharing arrangement 
approved by the Secretary. Premiums collected by the Secretary 
from the airline industry after September 22, 2001, through 
December 31, 2021, for any policy under this subsection, plus 
interest and less paid or pending claims, must be transferred 
to risk-sharing arrangement approved by the Secretary.
Senate bill
      Section 701(c) is a similar provision, but it does not 
authorize a follow-on industry shared-risk program.
Conference Substitute
      House bill modified to remove language creating a 
successor program.

         EXTENSION OF AUTHORITY TO LIMIT THIRD PARTY LIABILITY

H702/S701(a)

House bill
      Section 702 extends for air carriers the current 
limitation of liability to third parties for losses arising out 
of acts of terrorism to December 31, 2013. Current law (section 
44303(b)) allows the Secretary of Transportation to limit an 
airline's third-party liability to $100 million and also 
prohibits punitive damages against either an airline or the 
Government for any cause resulting from a terrorist event. A 
principal objective of the limitation was to encourage 
commercial insurance companies to provide a reasonably priced 
amount of third party war risk insurance by defining the 
maximum third party liability exposure of the airline for a 
single event. The provision was later expanded by Congress at 
the request of aircraft manufacturers and aircraft engine 
manufacturers to permit DOT to similarly limit third-party 
liability for these parties.
Senate bill
      Section 701(a) is the same provision.
Conference Substitute
      House bill.

                 CLARIFICATION OF REINSURANCE AUTHORITY

H703/S--

House bill
      Section 703 amends the reinsurance section in title 49 
U.S.C. to clarify that the DOT may, as a risk mitigation 
technique, purchase reinsurance from commercial reinsurers to 
supplement payment of claims from the aviation insurance 
revolving fund.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                  USE OF INDEPENDENT CLAIMS ADJUSTERS

H704/S--

House bill
      Section 704 authorizes the FAA to use commercial 
insurance carriers to underwrite insurance and adjust claims, 
and to use claims adjusters independent of an insurance 
underwriting agent. This permits expedited claims in the U.S. 
and foreign jurisdictions.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                       TITLE VIII--MISCELLANEOUS

DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST OF NATIONAL SECURITY

H801/S--

House bill
      Section 801 clarifies that the FAA has limited authority 
to release data and reports that are pulled from the FAA's 
record systems, which are subject to the Privacy Act, to other 
federal agencies in the interest of national security.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

        FAA AUTHORITY TO CONDUCT CRIMINAL HISTORY RECORD CHECKS

H802/S505

House bill
      Section 702 provides legal authority for the FAA to 
continue to access the National Crime Information Center and 
related State criminal history databases for certification 
purposes only to conduct a criminal history background check of 
an airman in the criminal repositories of the Federal Bureau of 
Investigation and States by submitting fingerprint based 
repository in compliance with the National Crime Prevention and 
Privacy Compact Act, and to receive relevant criminal history 
record regarding airman check. In accessing repository 
information, the FAA shall be subject to procedures established 
by the Departments of Justice or State as appropriate. The 
Administrator may not use authority to conduct criminal 
investigations. The Administrator shall receive reimbursement 
to process the fingerprint based checks in providing these 
services. The Administrator shall designate employees of the 
FAA to carry out these actions.
Senate bill
      Section 505 is a similar provision.
Conference Substitute
      House bill.

                  CIVIL PENALTIES TECHNICAL AMENDMENTS

H803/S--

House bill
      Section 803 applies civil penalties to violations of 
chapter 451 on Alcohol and Controlled Substance Testing.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

      CONSOLIDATION AND REALIGNMENT OF FAA SERVICES AND FACILITIES

H804/S308

House bill
      Section 804 directs the Administrator to develop proposed 
criteria for use in making recommendations for the realignment 
and consolidation of FAA services and facilities, and publish 
the proposed criteria within 30 days of enactment. The proposed 
criteria would be open to public comment for 30 days, and the 
FAA must publish final criteria within 90 days of enactment. It 
requires the Administrator to make recommendations for the 
realignment and consolidation of FAA services based on the 
final criteria and a justification for each recommendation. 
This information will be published and transmitted to Congress 
within 120 days of enactment. The Administrator is directed to 
submit the recommendations to a new Aviation Facilities and 
Services Board (not subject to the Federal Advisory Committee 
Act), consisting of: the Secretary of Transportation (DOT) or 
designee; two private sector members appointed by the DOT 
Secretary; and a U.S. Government Accountability Organization 
(GAO) representative (to be a non-voting member). Members would 
serve for three year terms. The Board will hold public hearings 
and develop a final report (with GAO input if requested by the 
Board) containing the Board's findings and conclusions based on 
public comments. The Board must publish the report and transmit 
a copy to Congress. The Administrator is prohibited from 
carrying out a Board recommendation if Congress passes a joint 
resolution of disapproval within 30 days of issuance of the 
Board's report. It authorizes the Administrator to make 
additional recommendations every two years. It specifies that 
Members of the Board will not receive compensation except for 
work injuries or travel expenses. The Administrator shall make 
available to the Board such staff, information and 
administrative services as may be required enabling the Board 
to carry out its responsibilities. In order for the Board to 
carry out its duties, the Administrator is authorized to 
appropriate for each of FYs 2011 through 2014, $200,000 to 
carry out this section.
Senate bill
      Section 308 creates a specific process for the FAA to 
complete a comprehensive study and analysis of the how the 
agency might realign its services and facilities to help reduce 
capital, operating, maintenance, and administrative costs on an 
agency-wide basis with no adverse effect on safety. The FAA 
would be required to develop criteria for realignment within 
nine months of passage and make any recommendations for action 
within nine months of the publication of the criteria. The Air 
Traffic Control Modernization Oversight Board would then be 
required to study the FAA's recommendations, provide 
opportunity for public comment, and report the Board's 
recommendations to Congress. The Administrator would be 
prohibited from consolidating additional approach control 
facilities into the Southern California TRACON, the Northern 
California TRACON, the Miami TRACON, or the Memphis TRACON 
until the Board's recommendations are completed.
Conference Substitute
      House and Senate bills merged and modified. The language 
now requires the Administrator to develop, in conjunction with 
the Chief NextGen Officer and Chief Operating Officer of the 
Air Transportation Organization, a National Facilities 
Realignment and Consolidation Report within 120 days of 
enactment and allow 45 days for the submission of public 
comments on that report. The report shall be developed with the 
participation of: 1) representatives of labor organizations 
representing operations and maintenance employees of the air 
traffic control system; and 2) industry stakeholders. The 
purpose of this report is to support the transition to NextGen 
and to reduce capitol, operating, maintenance, and 
administrative costs of the FAA without adversely affective 
safety. The report shall include recommendations with 
justification and project costs and savings. It instructs the 
Administrator to submit a report to Congress within 60 days 
after the last day of the public comment period on the 
Administrator's recommendations on realignment and 
consolidation of services and facilities of the FAA and it 
directs the Administrator to follow this report during the 
realignment process. It maintains the House language on 
Congressional Disapproval which prohibits the Administrator for 
carrying out recommendation in the report should a joint 
resolution of disapproval be enacted within 30 days of 
submission of the report to Congress.

         LIMITING ACCESS TO FLIGHT DECKS OF ALL-CARGO AIRCRAFT

H805/S--

House bill
      Section 805 requires the FAA, within 180 days of 
enactment, to assess the feasibility of developing a physical 
means, or a combination of physical and procedural means, to 
prohibit individuals, other than authorized flight crewmembers, 
from accessing the flight decks of all-cargo aircraft. It 
requires a report within one year of enactment.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

   CONSOLIDATION OR ELIMINATION OF OBSOLETE, REDUNDANT, OR OTHERWISE 
              UNNECESSARY REPORTS; USE OF ELECTRONIC MEDIA

H806/S721

House bill
      Section 806 requires the Administrator to issue a report 
containing a list of obsolete, redundant, or otherwise 
unnecessary reports that the FAA is required by law to submit 
to the Congress or publish. It requires an estimate of the cost 
savings that would result from the elimination or consolidation 
of those reports.
Senate bill
      Section 721 is an identical provision.
Conference Substitute
      House and Senate bills.

                  PROHIBITION ON USE OF CERTAIN FUNDS

H807/S--

House bill
      Section 807 prohibits the Secretary of Transportation 
from using funds available in this act to name, rename, 
designate or redesignate any authorized project or program 
after an individual who is currently serving in Congress.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                     STUDY ON AVIATION FUEL PRICES

H808/S727

House bill
      Section 808 requires the U.S. Government Accountability 
Office (GAO) to conduct a study and report to Congress within 
180 days of enactment on the impact of aviation fuel price 
increases on the Airport and Airway Trust Fund and the aviation 
industry in general.
Senate bill
      Section 727 is an identical provision.
Conference Substitute
      Senate bill.

                         WIND TURBINE LIGHTING

H809/S611

House bill
      Section 809 directs the Administrator to conduct a study, 
make recommendations, and report to Congress on wind turbine 
lighting systems within one year of the date of enactment. The 
study and recommendations must include the effect of wind 
turbine lighting on residential areas, the safety associated 
with alternative lighting strategies, the potential energy 
savings, and the feasibility of implementing alternative 
lighting strategies.
Senate bill
      Section 611 requires the Administrator to survey and 
assess the leases for critical FAA facility sites and determine 
how close these facilities are to wind farms or areas suitable 
for the construction of wind farms. Following the assessment, 
the FAA would be required to report to Congress and the U.S. 
Government Accountability Office (GAO) on its findings and 
recommendations. It would require the GAO to assess the 
potential impact wind farms have on the FAA's navigational aids 
and would require an assessment on methods and restrictions to 
mitigate the effects of wind farms on navigational aids. Upon 
receiving the GAO report, the FAA would be directed to issue 
guidelines for the construction of wind farms near critical FAA 
facilities.
Conference Substitute
      House bill.

                      AIR-RAIL CODE SHARING STUDY

H810/S725

House bill
      Section 810 directs the U.S. Government Accountability 
Office (GAO) to conduct a study regarding existing airline and 
intercity passenger rail code-sharing arrangements, and the 
feasibility of increasing intermodal connectivity of airline 
and intercity passenger rail facilities and systems to improve 
passenger travel, and submit the study to Congress within six 
months of enactment. The GAO is directed to consider: 1) the 
potential costs to taxpayers and other parties, and the 
benefits of the implementation of more integrated scheduling 
between airlines and Amtrak or other intercity passenger rail 
carriers; 2) airport and intercity passenger rail operations 
that can improve connectivity between airports and intercity 
passenger rail facilities; 3) the experience of other countries 
with airport and intercity passenger rail connectivity; and 4) 
other issues the GAO deems appropriate.
Senate bill
      Section 725 is a similar provision, but the GAO 
considerations are not as extensive. It requires the report to 
be completed within one year.
Conference Substitute
      House bill.

            D.C. METROPOLITAN AREA SPECIAL FLIGHT RULES AREA

H811/S--

House bill
      Section 811 requires the Administrator to work with the 
Secretaries of Defense and Homeland Security on a plan to 
decrease the operational impacts and improve general aviation 
access to the Washington, D.C. region impacted by the D.C. 
Metropolitan Area Special Flight Rules Area, and submit the 
plan to Congress within six months of enactment. The plan must 
outline specific changes to the D.C. Metropolitan Area Special 
Flight Rules Area that will decrease operational impacts and 
improve general aviation access to airports in the Washington, 
D.C. region that are currently impacted by the zone.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                         FAA REVIEW AND REFORM

H812/S--

House bill
      Section 812 requires the Administrator to undertake a 
thorough review of each program, office, and organization 
within the FAA, including the Air Traffic Organization, to 
identify: 1) duplicative positions, programs, roles or offices; 
2) wasteful practices; 3) redundant, obsolete, or unnecessary 
functions; 4) inefficient processes; and 5) ineffectual or 
outdated policies. Directs the Administrator to undertake such 
actions as may be necessary to address the findings of the 
review, streamline and reform FAA functions, and submit a 
report to Congress within 150 days of enactment.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

               USE OF MINERAL REVENUE AT CERTAIN AIRPORTS

H815/S224

House bill
      Section 815 specifies that the FAA may declare certain 
revenue derived from, or generated by mineral extraction at a 
general aviation airport to be revenue greater than the long 
term projects, operation, maintenance, planning and capacity 
needs of the airport. If the Administrator issues a 
declaration, the airport sponsor may allocate to itself or 
governing body within limits of the airport's locality the 
revenue identified in declaration for use in carrying out a 
Federal, State or local transportation infrastructure project. 
In generating revenue from mineral rights the airport sponsor 
shall not charge less than fair market value. The airport 
sponsor and Administrator shall agree on a 20-year capital 
improvement program that includes projected costs, charges and 
fees. Furthermore, the airport sponsor shall agree in writing 
to waive all rights to receive entitlement funds or 
discretionary funds, and operate as a public-use airport until 
the Administrator grants a request to allow airport to close. 
The airport sponsor shall create a provisional fund for current 
and future environmental impacts, assessments and mitigation 
plans. The Administrator shall conduct review and issue a 
determination within 90 days following receipt of an airport 
sponsor's application and requisite documentation.
Senate bill
      Section 224 is a similar provision, but it contains a 
five-year capital improvement program.
Conference Substitute
      Senate bill.

                              CONTRACTING

H818/S--

House bill
      Section 818 permits the Administrator to conduct a 
review, and submit to relevant Committees, a report describing 
how FAA weighs economic vitality of a region when considering 
contract proposals for training facilities.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified by removing language on ``economic 
vitality'' and inserting language that requires: 1) the 
proposal is drafted so that all parties can fairly compete; and 
2) the proposal takes into consideration the most cost-
effective location, accessibility, and services options.

                             FLOOD PLANNING

H819/S--

House bill
      Section 819 permits the Administrator, in consultation 
with the Federal Emergency Management Administration, to 
conduct a review and submit to relevant committees a report on 
the state of preparedness and response capability for airports 
located in flood plains to respond to and seek assistance in 
rebuilding after catastrophic flooding.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to include a direction to the Federal 
Emergency Management Agency (FEMA) to consider as an eligible 
activity for purposes of the National Flood Insurance Act of 
1968, ``the demolition and rebuilding of properties to at least 
base flood levels or higher''.

                     HISTORICAL AIRCRAFT DOCUMENTS

H823/S--

House bill
      Section 823 directs the Administrator to take actions, as 
seen necessary, to preserve original aircraft type certificate 
engineering and technical data in possession of the FAA. No 
later than one year after date of enactment, the Administrator 
shall revise an executive order to prohibit destruction of 
historical aircraft documents. The Administrator shall consult 
with Archivist of the U.S. and Administrator of General 
Services on the best methods to preserve these documents. The 
Administrator shall make these documents available under 
Freedom of Information Act. This provision does not affect the 
rights of the holder or owner of a type certificate identified 
above, or require holders or owners to provide, surrender or 
preserve any original or duplicate engineering data to FAA. 
Notwithstanding any other provision of the law, the holder of a 
type certificate identified in this section shall not be 
responsible for any continued airworthiness or FAA regulatory 
requirements.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified by changing the date from one year to 
three years for the revision of order. The language specifying 
that holders of type certificates shall not be responsible for 
any continued airworthiness is deleted. New language is added 
narrowing the definition of applicability to this section to 
those ``having a standard airworthiness certificate issued 
prior to the date the documents are released to a person by the 
FAA under subsection (b)(1).

                       RELEASE FROM RESTRICTIONS

H824/S219

House bill
      Section 824 authorizes the Secretary of Transportation to 
grant an airport, city or county a release from any of the 
terms, conditions, reservations or restrictions contained in a 
deed in which the U.S. conveyed to the airport, city or county 
property for airport purposes pursuant to section 16 of Federal 
Airport Act or section 23 of the Airport and Airway Development 
Act. Any release granted by the Secretary shall be subject to 
the following conditions: 1) the applicable airport, city or 
country shall agree in conveying interest in the property which 
U.S. conveyed to the airport and 2) the city or county will 
receive an amount for such interest equal to fair market value. 
Lastly, any amount received must be used exclusively for 
development, improvement, operation. or maintenance of public 
airport.
Senate bill
      Section 219 is a similar provision, but it specifies 
airports in St. George, Utah, and Dona Ana County, New Mexico, 
for release in order to facilitate the development of a 
replacement airport.
Conference Substitute
      House bill modified.

           AIR TRANSPORTATION OF LITHIUM CELLS AND BATTERIES

H814/S--

House bill
      Section 814 requires the Administrator to not issue or 
enforce any regulation regarding the transportation by aircraft 
of lithium metal cells or batteries or lithium ion cells or 
batteries, if the requirement is more stringent than the 
requirements of International Civil Aviation Organization.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to require that, in almost all 
circumstances, regulations governing the air transportation of 
lithium metal or lithium ion cells or batteries be consistent 
with the provisions of the International Civil Aviation 
Organization Technical Instructions for the Safe Transportation 
of Dangerous Goods by Air (commonly known as the ICAO Technical 
Instructions), as in effect at the time the regulations were 
adopted. The only exceptions to this directive would be (a) to 
allow the retention of an existing U.S. prohibition on 
transportation of lithium metal batteries and cells on 
passenger aircraft, even if it is not embodied in the ICAO 
Technical Instructions, and (b) to allow adoption and 
enforcement of a targeted rule more stringent than the ICAO 
Technical Instructions in the event that an authoritative 
national or international governmental body provides a formal 
report finding that the presence of lithium metal or lithium 
ion batteries on an aircraft in compliance with the ICAO 
Technical Instructions was a substantial contributing factor to 
the initiation or promulgation of an onboard fire.
      Where the conditions set forth in this section are met, 
the Secretary may issue a targeted emergency regulation that 
addresses solely the deficiencies identified in the report that 
triggered the regulation. That regulation may remain in effect 
for up to one year and is not subject to renewal. Either 
alternatively or consecutively, the Secretary may undertake a 
rulemaking in accordance with the Administrative Procedure Act 
to adopt a permanent regulation. That permanent regulation must 
be based on substantial credible evidence that the cells or 
batteries of the type at issue could be expected to 
substantially contribute or propagate an on-board fire even if 
they were shipped in accordance with applicable ICAO Technical 
Regulations; be narrowly tailored to avoid disruption of the 
shipping of other cells, batteries or products; and employ the 
least expensive approach while addressing the identified safety 
concern.

 LIABILITY PROTECTION FOR VOLUNTEER PILOT NONPROFIT ORGANIZATIONS THAT 
   FLY FOR PUBLIC BENEFIT AND TO PILOTS AND STAFF OF SUCH NONPROFIT 
                              ORGANIZATION

H816/S1211-1213

House bill
      Section 816 amends the Volunteer Protection Act of 1997 
(VPA) to include volunteer pilots and volunteer pilot 
organizations within the scope of its protections. Under 
present law, nonprofit volunteer pilot organizations and their 
pilots that provide life-saving medical flights without 
compensation are vulnerable to costly and often frivolous 
litigation that undermines the ability of these organizations 
to provide critical volunteer flight services in a timely 
manner. In addition, institutions that refer patients to 
volunteer pilot organizations are presently subject to legal 
jeopardy. Section 816 protects and promotes the important work 
of volunteer pilot organizations by creating limited protection 
against liability to volunteer pilot organizations and pilots 
so that they are able to procure necessary insurance and 
continue their important operations.
Senate bill
      Sections 1211-1213 of the Senate bill contain a similar, 
but more limited, volunteer pilot provision. The Senate 
provision only includes volunteer pilots within the scope of 
its protections. Although the Senate provision does not provide 
protections to volunteer pilot organizations, it does protect 
and promote the important work of volunteer pilots.
Conference Substitute
      No provision.

                AIRCRAFT SITUATIONAL DISPLAY TO INDUSTRY

H817/S--

House bill
      Section 817 specifies that Congress finds that the 
Federal Government's dissemination to the public of information 
relating to noncommercial flight does not serve a public policy 
objective. Upon request of private owner or operator the 
Federal Government should not disseminate to the public 
information relating to non-commercial flights carried out by 
that owner or operator as the information should be private and 
confidential. The FAA shall block the display of the owner or 
operator's aircraft registration number in aircraft situation 
display data upon the private owner or operator request, except 
when the FAA provides such data to a government agency.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

                           SENSE OF CONGRESS

H825/S--

House bill
      Section 825 states that it is the Sense of Congress that 
Los Angeles World Airports should consult on regular basis with 
representatives of the community surrounding the airport 
regarding ongoing operations, plans to expand, modify or 
realign the Los Angeles International Airport (LAX) facility, 
and include consultations with any organization which has at 
least 20 or more individuals.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to include consultation with any 
organization which has at least 100 or more individuals.

                  HUMAN INTERVENTION MOTIVATION STUDY

H--/S702

House bill
      No similar provision.
Senate bill
      Section 702 within six months of enactment the FAA shall 
develop a Human Intervention Motivation Study program for cabin 
crews employed by commercial air carriers in the United States.
Conference Substitute
      Senate bill.

                 STUDY OF AERONAUTICAL MOBILE TELEMETRY

H--/S719

House bill
      No similar provision.
Senate bill
      Section 719 requires the Administrator to report to 
Congress in 180 days on the aeronautical telemetry needs of 
civil aviation over the next decade and the potential impact of 
the introduction of a new radio service operating at the same 
spectrum as aeronautical mobile telemetry service.
Conference Substitute
      Senate bill.

CLARIFICATION OF REQUIREMENTS FOR VOLUNTEER PILOTS OPERATING CHARITABLE 
                            MEDICAL FLIGHTS

H--/S729

House bill
      No similar provision.
Senate bill
      Section 729 clarifies that an aircraft owner or aircraft 
operator can accept reimbursement for all or part of the fuel 
costs associated with operating a volunteer flight for medical 
purposes.
Conference Substitute
      Senate bill modified by including original language, 
``not withstanding any other law or regulation'' for the 
administering of section 61.113(c) of 14 C.F.R. Furthermore, 
language is added to allow pilot to accept reimbursement from 
volunteer pilot organization for fuel costs association with 
flight operation for medical purpose, and add ``organ'' as a 
transported item in subsection (a). Language is added that in 
order for an owner or operator to be eligible for the 
referenced reimbursement, the aircraft owner or operator must 
have volunteered and notified any individual on the flight that 
the flight operation is for charitable purposes and is not 
subject to the same requirements as commercial flight. Lastly, 
language was added that allows the Administrator to impose 
minimum standards with respect to training and flight hours for 
single-engine, multi-engine and turbine engine operations that 
is being reimbursed for fuel costs in the above mentioned 
event, including the authority to mandate that pilot in command 
of aircraft hold an instrument rating and be current and 
qualified for the aircraft being flown to ensure safety of 
flight operations.

        PILOT PROGRAM FOR A REDEVELOPMENT OF AIRPORT PROPERTIES

H--/S712

House bill
      No similar provision.
Senate bill
      Section 702 directs the FAA to create a pilot program 
fostering the collaboration between airports who have submitted 
a noise compatibility program and the surrounding neighboring 
local jurisdictions to encourage airport-compatible land uses 
and generate economic benefits to the local airport authority 
and adjacent community. The FAA would also have the authority 
to issue grants for this program.
Conference Substitute
      Senate bill.

   REPORT ON NEW YORK CITY AND NEWARK AIR TRAFFIC CONTROL FACILITIES

H--/S723

House bill
      No similar provision.
Senate bill
      Section 723 requires the Administrator within 90 days to 
report to Congress on FAA's plan to staff Newark Liberty 
Airport's air traffic control tower at negotiated staffing 
levels within one year.
Conference Substitute
      Senate bill modified to direct FAA to submit a report to 
Congress on the FAA's staffing and scheduling plans for air 
traffic control facilities in the New York and Newark Region 
for the one-year period after the date of enactment.

        CYLINDERS OF COMPRESSED OXYGEN OR OTHER OXIDIZING GASES

H813/S730

House bill
      Section 813 directs that the transportation within the 
State of Alaska of cylinders of compressed oxygen or other 
oxidizing gases aboard aircraft is exempt from compliance from 
regulations that require such gases to be enclosed in outer 
packaging capable of passing the flame penetration and 
resistance test and the thermal resistance test, without regard 
to the end use of the cylinders. The exemption is to be applied 
in circumstances in which transportation of the cylinders by 
ground or vessel is unavailable and transportation by aircraft 
is the only practical means for transporting the cylinders to 
their destination.
Senate bill
      Section 730 is a similar provision, but provides an 
exemption only for certain cylinders.
Conference Substitute
      House bill modified to include new language that: 1) 
specifies that each cylinder is fully covered with fire or 
flame resistant blanket; 2) requires that the operator complies 
with the applicable notification procedures under 49 C.F.R. 
175.33.; and 3) specifies that the exemption applies to cargo-
only aircraft if the destination has cargo-only service at 
least once a week and passenger and cargo-only aircraft if the 
destination does not receive cargo-only service at least once a 
week.

                          ORPHAN EARMARKS ACT

H--/S738

House bill
      No similar provision.
Senate bill
      Section 738 requires all federal agencies to rescind 
amounts designated as earmarks back to the Treasury if they are 
nine years or older.
Conference Substitute
      Senate bill modified.

  PRIVACY PROTECTIONS FOR AIRCRAFT PASSENGER SCREENING WITH ADVANCED 
                           IMAGING TECHNOLOGY

H--/S739

House bill
      No similar provision.
Senate bill
      Section 739 directs the Transportation Security 
Administration (TSA) Administrator to ensure that advanced 
imaging technology used for the screening of passengers is 
equipped with automatic target recognition software (which 
would produce a generic image of the individual being screened) 
beginning on January 1, 2012.
Conference Substitute
      Senate bill modified to include language allowing the TSA 
Administrator to extend the deadline that requires the TSA 
Administrator to ensure that Advanced Imaging Technology 
machines meet requirements as specified in this section, if the 
resulting technology would perform inadequately or additional 
testing is necessary. In addition, the beginning date for 
implementation of automatic target recognition software is 
changed from January 1, 2012 to June 1, 2012.

    TERMINATION OF CERTAIN RESTRICTIONS FOR BURKE LAKEFRONT AIRPORT

H820/S--

House bill
      Section 820 states that any restriction in FAA Flight 
Data Center Notice to Airmen, the Administrator may not 
prohibit or impose airspace restrictions with respect to an air 
show or other aerial event located at the Burke Lakefront 
Airport in Cleveland, Ohio, due to a stadium event or event at 
other venues occurring at the same time. The Administrator may 
prohibit aircraft from flying directly over applicable stadiums 
or venues.
Senate bill
      No similar provision.
Conference Substitute
Senate bill.

                        SANTA MONICA AIRPORT, CA

H821/S--

House bill
      Section 821 specifies that Congress finds that the 
Administrator should enter into good faith discussions with 
city of Santa Monica, California, to achieve a runway safety 
area solution consistent with FAA design guidelines.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

     INSPECTOR GENERAL REPORT ON PARTICIPATION IN FAA PROGRAMS BY 
                 DISADVANTAGED SMALL BUSINESS CONCERNS

H822/S--

House bill
      Section 822 directs the DOT IG to submit a report to 
Congress on the number of new small business concerns owned and 
controlled by socially and economically disadvantaged 
individuals, such as veterans, that participate in airport 
programs. The report shall list the top 25 and bottom 25 large 
and medium hub airports in terms of providing opportunities for 
such small businesses and provide results of the assessments 
and recommendations to the FAA and Congress on methods for 
other airports to achieve results similar to those of the top 
airports.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                          ISSUING REGULATIONS

H826/S--

House bill
      Section 826 requires that when proposing or issuing 
regulation the Administrator shall analyze the different 
industry segments and tailor any regulation to characteristics 
of each separate segment, taking into account that U.S. 
aviation industry is composed of different segments. The 
Administrator shall analyze for each industry segment: 
alternative forms of regulation, assess the costs and benefits, 
ensure proposed regulation is based on best reasonably 
obtainable scientific, technical and other information, and 
assess any adverse effects on efficient function of the 
economy, private markets together with quantification of such 
costs.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

                WEIGHT RESTRICTIONS AT TETERBORO AIRPORT

H--/S711

House bill
      No similar provision.
Senate bill
      Section 711 prohibits the Administrator from taking 
action designed to challenge or influence the weight 
restrictions at Teterboro Airport, except in an emergency.
Conference Substitute
      House bill.

   FLIGHT CREW MEMBER PAIRING AND CREW RESOURCE MANAGEMENT TECHNIQUES

H--/S720

House bill
      No similar provision.
Senate bill
      Section 720 requires the Administrator to conduct a study 
and issue a report on aviation industry best practices with 
regard to flight crew member pairing, crew resource management 
techniques, and pilot commuting.
Conference Substitute
      House bill because the Senate provision is included in 
P.L. 111-216, the Airline Safety and Federal Aviation 
Administration Extension Act of 2010.

                ONGOING MONITORING OF AIRSPACE REDESIGN

H--/S726

House bill
      No similar provision.
Senate bill
      Section 726 directs the Administrator to work with the 
New York and New Jersey Port Authority to monitor the noise 
impacts of the redesign and submit reports to Congress on those 
impacts within 270 days, and every 180 days thereafter until 
the New York, New Jersey and Philadelphia airspace redesign is 
completed.
Conference Substitute
      House bill.

                  LAND CONVEYANCE FOR SOUTHERN NEVADA

H--/S728

House bill
      No similar provision.
Senate bill
      Section 728 adds language to Title VII to allow certain 
lands in Clark County, Nevada, to be used for the development 
of a flood mitigation infrastructure project once the 
Administrator has: (1) approved an airport layout plan for an 
airport in Ivanpah Valley, Nevada; and (2) issued a record of 
decision after the preparation of an environmental impact 
statement or similar analysis document on the construction and 
operation for the airport in Ivanpah Valley, Nevada.
Conference Substitute
      House bill.

                          TECHNICAL CORRECTION

H--/S731

House bill
      No similar provision.
Senate bill
      Section 731 amends the Consolidated Appropriations Act of 
2010, to require inspections of rail containers containing 
firearms or ammunition and permits the temporary suspension of 
firearm carriage if credible intelligence information indicates 
that a threat related to the national rail system, specific 
routes, or trains is identified.
Conference Substitute
      House bill.

              SCIENTIFIC INSTRUMENTS ON COMMERCIAL FLIGHTS

H--/S732

House bill
      No similar provision.
Senate bill
      Section 732 requires the Secretary of Transportation and 
the Secretary of Commerce to develop a plan to allow federal 
agencies to fly weather forecasting instruments on commercial 
flights within 270 days of enactment.
Conference Substitute
      House bill.

           CONTROLLING HELICOPTER NOISE IN RESIDENTIAL AREAS

H--/S740

House bill
      No similar provision.
Senate bill
      Section 740 directs the FAA to prescribe standards to 
measure helicopter noise and regulations to control helicopter 
noise in residential areas. This section would mandate that 
within one year, the FAA finalize regulations with respect to 
helicopters operating over Long Island.
Conference Substitute
      House bill.

CRIMINAL PENALTY FOR UNAUTHORIZED RECORDING OR DISTRIBUTION OF SECURITY 
                            SCREENING IMAGES

H--/S734

House bill
      No similar provision.
Senate bill
      Section 734 establishes criminal penalties for 
unauthorized recording or distribution of security screening 
images. Includes images from backscatter x-rays or millimeter 
waves and devices. It provides an exception for certain law 
enforcement or intelligence purposes.
Conference Substitute
      House bill.

  APPROVAL OF APPLICATIONS FOR THE SECURITY SCREENING OPT-OUT PROGRAM

H--/S735

House bill
      No similar provision.
Senate bill
      Section 735 requires the Transportation Security 
Administration (TSA) Administrator to consider approving 
applications to participate in the Screening Partnership 
Program (SPP), which uses private screeners instead of TSA 
employees, for all airports with pending applications. This 
section requires the TSA Administrator to reconsider rejected 
applications for the SPP for a limited number of airports. If 
the TSA Administrator decides again to deny an application, 
they must report to Congress on the reason for the denial.
Conference Substitute
      Senate bill modified to require the TSA Administrator to 
approve or deny, within 120 days, an application received by an 
airport to participate in the SPP. The Administrator is 
required to approve the application unless a determination is 
made that such approval would compromise security or have a 
detrimental effect on the cost-efficiency or effectiveness of 
security screening at that airport. The Administrator must 
provide a more in-depth explanation in a report to Congress if 
an SPP application is denied. This explanation must include: 
(1) the findings that served as a basis for the denial; (2) 
results of any cost or security analysis conducted in the 
reconsideration; and (3) recommendations on how the airport 
operator can address the reasons for the denial. This report 
has to be issued with 60 days of the denial. Airport Operators 
who apply for the SPP must also provide TSA a recommendation as 
to which company would best serve the airport along with an 
explanation for that choice. The modified provision also 
requires the reconsideration of SPP applications pending 
between January 1, 2011, and February 3, 2011, and outlines 
specific timelines to be followed in issuing decisions 
regarding SPP reapplications. The provision includes 
modifications to existing requirements which provide the 
Administrator with more flexibility in determining what 
companies can bid for SPP contracts.
      The conference committee believes that in determining the 
cost efficiency and effectiveness of an applicant's screening 
services, the TSA Administrator shall compare the annual costs 
to the Federal government and related effectiveness measures 
associated with screening services at commercial airports using 
private-sector screeners with comparable costs associated with 
screening services by Federal screeners, applying the relevant 
cost and performance metrics equally to the private and Federal 
screening programs.

             CONVEYANCE OF LAND TO CITY OF MESQUITE, NEVADA

H--/S736

House bill
      No similar provision.
Senate bill
      Section 736 directs the Secretary of the Interior to 
convey to the City of Mesquite, NV, without consideration, all 
right, title and interests of the U.S. in a land parcel at 
Mesquite Airport.
Conference Substitute
      House bill.

                   TITLE IX--NATIONAL MEDIATION BOARD

                 AUTHORITY OF THE DOT INSPECTOR GENERAL

H901/S--

House bill
      Section 901 gives the DOT IG specific authority to 
conduct audits and evaluate the National Mediation Board's 
(NMB) financial management, property management, and business 
operations. In carrying out this authority, the Inspector 
General of the Department of Transportation (DOT IG) is to keep 
the Chairman of the Mediation Board and Congress fully and 
currently informed, issue findings and recommendations and 
report periodically to Congress. The Secretary of 
Transportation may only appropriate for use by the DOT IG no 
more than $125,000 for each of FYs 2011 through 2014.
Senate bill
      No similar provision.
Conference Action
      No provision.

          EVALUATION AND AUDIT OF THE NATIONAL MEDIATION BOARD

H902/S--

House bill
      Section 902 directs the GAO to conduct audits and 
evaluate the NMB's programs, operations and activities, 
including: 1) information management and security; 2) resource 
management; 3) workforce development; 4) procurement and 
contracting policies; and 5) NMB processes for conducting 
investigations of representation applications, determining and 
certifying representation of employees, and ensuring that the 
process occurs without interference.
Senate bill
      No similar provision.
Conference Action
      House provision modified. The conference committee agreed 
to the following modifications. The conference committee agreed 
to amend the Railway Labor Act by requiring an evaluation and 
audit of the Mediation Board by the Comptroller General. The 
Comptroller General of the U.S. shall evaluate and audit the 
programs and expenditures of the Mediation Board at least every 
two years, however it may be conducted as determined necessary 
by the Comptroller or appropriate congressional committees. In 
conducting the evaluation and audit of the Mediation Board, the 
Conference Committee sets forth the minimum programs, 
operations and activities of the Board that shall be included. 
No later than 180 days after the date of enactment, the 
Comptroller General shall review the Mediation Board's 
processes to certify and decertify representation of employees 
by a labor organization and make recommendations to the Board 
and appropriate congressional committees regarding actions that 
may be taken by the Board to ensure the processes are fair and 
reasonable for all parties.

                             REPEAL OF RULE

H903/S--

House bill
      Section 903 repeals the rule prescribed by the NMB on May 
11, 2010, effective January 1, 2011. In May 2010, the NMB 
changed standing rules for union elections at airlines and 
railroads, which counted abstentions as votes ``against'' 
unionizing, to the current rule which counts only no votes as 
``against'' unionizing, abstentions do not count either way.
Senate bill
      No similar provision.
Conference Action
      This provision was not agreed to by the Conference, and 
is not included in the final bill. The conference committee 
agreed to the following provisions.
Rule Making
      The conference committee agreed to amend title I of the 
Railway Labor Act by inserting after section 10 that the 
Mediation Board has authority from time to time to make, amend, 
and rescind, in the manner prescribed by section 553 of title 
5, United States Code and after opportunity for a public 
hearing, such rules and regulations as may be necessary to 
carry out the provisions of this Act.
Runoff Elections
      The conference committee agreed to amend Paragraph Nine 
of section 2 of the Railway Labor Act to require that in any 
runoff election for which there are 3 or more options 
(including the option of not being represented by any labor 
organization) on the ballot and no such option receives a 
majority of the valid votes cast, the Mediation Board shall 
arrange for a second election between the options receiving the 
largest and the second largest number of votes.
Showing of Interest
      The conference committee agreed to amend section 2 of the 
Railway Labor Act by raising the showing of interest threshold 
for elections to not less than fifty percent of the employees 
in the craft or class.

   TITLE X--SCIENCE COMMITTEE, RESEARCH, ENGINEERING AND DEVELOPMENT 
                                (R,E&D)

                              SHORT TITLE

H1001/S--

House bill
      Section 1001 titles the section the ``Federal Aviation 
Research and Development Reauthorization Act of 2011''.
Senate bill
      No similar provision.
Conference Substitute
      Senate bill.

                    AUTHORIZATION OF APPROPRIATIONS

                            ($ IN MILLIONS)

H1003(a)/S103

House bill
      Section 1003(a) authorizes the Federal Aviation 
Administration's Research, Engineering and Development (R,E&D) 
account at $165.2 million in FY 2011, and $146.83 million in FY 
2012, FY 2013, and FY 2014.
Senate bill
      Section 103 authorizes the Federal Aviation 
Administration's Research, Engineering and Development account 
at $200 million in FY 2010 and $206 million in FY 2011.
Conference Substitute
      House and Senate bills merged to provide $168 million for 
Federal Aviation Administration's Research, Engineering and 
Development account in FYs 2012 through FY 2015.

                              DEFINITIONS

H1002/S--

House bill
      Section 1001 defines the terms ``Administrator'', 
``FAA'', ``Institution of Higher Education'', ``NASA'', 
``National Research Council'', ``NOAA'', and ``Secretary''.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                          PROGRAMS AUTHORIZED

H1003(b), (c)/S103

House bill
      Section 1003(b),(c) authorizes Research and Development 
activities listed in the National Aviation Research Plan.
Senate bill
      Section 103 requires the FAA to establish a grant program 
to promote aviation research at undergraduate and technical 
colleges including schools serving Historically Black Colleges 
and Universities, Hispanic, Native Alaskan & Hawaiian 
populations.
Conference Substitute
      House bill.

                       UNMANNED AIRCRAFT SYSTEMS

H1004/S607(a)

House bill
      Section 1004 requires the Administrator in conjunction 
with other appropriate federal agencies to develop technologies 
and methods to assess the risk and prevent defects, failures, 
and malfunctions of products, parts and processes for use in 
all classes of Unmanned Aircraft Systems (UAS) that could 
result in catastrophic failure of UAS or endanger other 
aircraft in the NAS. The Administrator is required to supervise 
research which will develop better understanding of the 
relationship between human factors and UAS safety and develop 
simulation models for integration of all UASs into the NAS 
without degrading safety for current users.
Senate bill
      Section 607(a) permits the FAA to conduct developmental 
research on UASs. It authorizes the FAA, in conjunction with 
other federal agencies as appropriate, to develop technologies 
and methods to assess the risk of and prevent defects, 
failures, and malfunctions of products, parts, and processes, 
for use in all classes of unmanned aircraft systems that could 
result in a catastrophic failure.
Conference Substitute
      House bill.

                      RESEARCH PROGRAM ON RUNWAYS

H1005/S605

House bill
      Section 1005 directs that when researching how to develop 
and maintain a safe and efficient NAS, the Administrator will 
include improved runway surfaces and engineered material 
restraining systems for runways at general aviation and 
commercial airports.
Senate bill
      Section 605 allows the FAA to continue a program that 
authorizes awards to nonprofit research foundations to improve 
the construction and durability of pavement for runways.
Conference Substitute
      House and Senate bills merged. The provision contains 
modified Senate language in subsection (a) that will allow the 
Administrator to maintain a program that will make awards to 
carry out a research program under which the Administrator may 
make grants to and enter into cooperative agreements with 
institutions of higher education and nonprofit pavement 
research organization. The conference agreement includes House 
language to cover research that relates to engineered material 
restraining systems for runways at both general aviation and 
commercial airports. The conference agreement also includes 
Senate language on use of grants or cooperative agreements.

                  RESEARCH ON DESIGN FOR CERTIFICATION

H1006/S--

House bill
      Section 1006 requires the Administrator to conduct 
research on methods and procedures to improve confidence in and 
the timeliness of certification of new technologies for 
introduction into the NAS within one year. It specifies that 
not later than six months after enactment, the FAA will develop 
a plan for the research that contains objectives, proposed 
tasks, milestones and a five year budget profile. The 
Administrator will enter into an arrangement with the National 
Research Council to conduct an independent review of the plan 
not later than 18 months after the date of enactment, with 
results of the review provided to Congress.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

                  AIRPORT COOPERATIVE RESEARCH PROGRAM

H1007/S601

House bill
      Section 1007 makes the Airport Cooperative Research 
Program permanent and requires a report on the program no later 
than September 30, 2012.
Senate bill
      Section 601 is a similar provision, but it specifies that 
a maximum of $15 million of aviation research grant funds may 
go to the Airport Cooperative Research Program. It directs that 
at least $5 million of the Airport Cooperative Research Program 
funds must go to environmental research.
Conference Substitute
      House bill.

                         CENTERS OF EXCELLENCE

H1008/S608

House bill
      Section 1008 changes the current Government share of 
costs for the Centers of Excellence so that the government's 
share of cost will not exceed 50 percent, with the exception 
that the Administrator may increase the share to a maximum of 
75 percent for a fiscal year if the Administrator determines a 
center would be unable to carry out authorized activities 
without additional funds. An annual report is required listing 
the research projects initiated at each Center of Excellence, 
the amount of funding and funding source for each project, 
institutions participating, their shares of funding, and level 
of cost-sharing for the project.
Senate bill
      Section 608 authorizes $1 million per year for each of 
fiscal years 2008 through 2012 for a Center of Excellence in 
applied research and training in the use of advanced materials 
in transport category aircraft.
Conference Substitute
      House bill.

       CENTER OF EXCELLENCE FOR AVIATION HUMAN RESOURCE RESEARCH

H1009/S--

House bill
      Section 1009 permits the Administrator to establish a 
Center of Excellence to conduct research on human performance 
in the air transportation environment, and any other aviation 
human resource issues pertinent to developing and maintaining a 
safe and efficient air transportation system. Activities 
conducted under this section may include research and 
development and evaluation of training programs, best practices 
for recruitment, development of a baseline of general aviation 
employment statistics, research and development of the airframe 
and power plant technician certification process, evaluation of 
aviation maintenance technician school environment, and 
transitioning mechanics into the aviation field.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

          INTERAGENCY RESEARCH ON AVIATION AND THE ENVIRONMENT

H1010/S--

House bill
      Section 1010 directs that the Administrator, in 
coordination with National Air and Space Administration (NASA), 
may maintain a research program to assess the potential effect 
of aviation on the environment. The research plan will be 
developed by the Administrator with NASA and other relevant 
agencies, and will contain an inventory of current interagency 
research, future research objectives, proposed tasks, 
milestones and a five year budgetary profile. The plan shall be 
completed within one year, and shall be updated as appropriate 
every three years after initial submission.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

             AVIATION FUEL RESEARCH AND DEVELOPMENT PROGRAM

H1011/S--

House bill
      Section 1011 specifies that, using Research, Engineering 
and Development (R,E&D) funds, the Administrator, in 
coordination with NASA Administrator, will continue R,E&D 
activities into the qualification of unleaded aviation fuel and 
safe transition to this fuel for the fleet of piston engine 
aircraft. It directs that the Administrator, not later than 270 
days after enactment, will provide Congress with a report on a 
plan, policies, and guidelines on how this will be 
accomplished.
Senate bill
      No similar provision.
Conference Substitute
      House bill.

 RESEARCH PROGRAM ON ALTERNATIVE JET FUEL TECHNOLOGY FOR CIVIL AIRCRAFT

H1012/S603

House bill
      Section 1012 directs the Secretary of Transportation to 
conduct a research program related to developing and qualifying 
jet fuel from alternative sources through grants and other 
measures. The program will allow for participation of industry 
and educational and research institutions that have existing 
facilities and experience in the research and development of 
technology for alternative jet fuels. The Secretary may 
collaborate with existing interagency programs, including the 
Commercial Aviation Alternative Fuels Initiative (CAAFI).
Senate bill
      Section 603 requires the DOT to establish a research 
program to develop jet fuel from natural gas, biomass, and 
other renewable sources. It directs that the FAA, within 180 
days, designate a Center of Excellence for Alternative Jet-Fuel 
Research for Civil Aircraft.
Conference Substitute
      Senate bill modified to add language permitting 
facilities to participate in the program that ``leverage 
private sector partnerships and consortia with experience 
across the supply chain'' and changing ``shall'' to ``may'' in 
directing the Administrator to designate an institution to 
carry out this section.

   REVIEW OF FAA'S ENERGY- AND ENVIRONMENT-RELATED RESEARCH PROGRAMS

H1013/S--

House bill
      Section 1013 directs the Administrator to review FAA 
energy-related and environment-related research programs. It 
initiates a report to be submitted on the agency's review to 
Congress no later than 18 months after enactment.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to direct the FAA to ``enter into an 
arrangement for an independent external review'' to conduct the 
review, rather than the Administrator.

       REVIEW OF FAA'S AVIATION SAFETY-RELATED RESEARCH PROGRAMS

H1014/S--

House bill
      Section 1014 directs the Administrator to review FAA's 
aviation safety-related research programs. It initiates a 
report to be submitted on the agency's review to Congress no 
later than 14 months after enactment.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to direct the FAA to ``enter into an 
arrangement for an independent external review'' to conduct the 
review, rather than the Administrator.

                   RESEARCH GRANTS FOR UNDERGRADUATES

H--/S103

House bill
      No similar provision.
Senate bill
      Section 103 authorizes $5 million for research grants 
program for undergraduate colleges, including those that are 
Historically Black Colleges and Universities, Hispanic Serving 
Institutions, tribally controlled institutions and Alaska 
Native and Native Hawaiian institutions.
Conference Substitute

      House bill.

     PRODUCTION OF CLEAN COAL FUEL TECHNOLOGY FOR CIVILIAN AIRCRAFT

H--/S604

House bill
      No similar provision.
Senate bill
      Section 604 requires the Secretary of Transportation to 
establish a Center of Excellence for a research program related 
to developing jet fuel from clean coal through grants or other 
measures, with a requirement to include educational and 
research institutions in the initiative.
Conference Substitute
      Senate bill modified by changing ``shall'' to ``may'' in 
directing the Administrator to establish a Center of Excellence 
to carry out this section.

          WAKE TURBULENCE, VOLCANIC ASH, AND WEATHER RESEARCH

H--/S606

House bill
      No similar provision.
Senate bill
      Section 606 directs the Administrator to initiate an 
evaluation of proposals that would: increase capacity 
throughout the NAS by reducing spacing requirements between 
aircraft through research of wake turbulence; begin 
implementation of a system to avoid volcanic ash; and establish 
weather research projects, including on ground de-icing.
Conference Substitute
      Senate bill modified to include research on the nature of 
wake vortexes and to direct the Administrator to coordinate 
with National Oceanic and Atmospheric Administration (NOAA), 
National Air and Space Administration (NASA), and other 
appropriate federal agencies to conduct research.

    REAUTHORIZATION OF CENTER OF EXCELLENCE IN APPLIED RESEARCH AND 
    TRAINING IN THE USE OF ADVANCED MATERIALS IN TRANSPORT AIRCRAFT

H--/S608

House bill
      No similar provision.
Senate bill
      Section 608 authorizes $1 million per year for FYs 2008 
through 2012 for a Center of Excellence in applied research and 
training in the use of advanced materials in transport category 
aircraft.
Conference Substitute
      Senate bill with modification removing authorization 
amounts.

 RESEARCH AND DEVELOPMENT OF EQUIPMENT TO CLEAN AND MONITOR THE ENGINE 
           AND APU BLEED AIR SUPPLIED ON PRESSURIZED AIRCRAFT

H--/S612

House bill
      No similar provision.
Senate bill
      Section 612 requires the FAA to conduct a research 
program for the identification or development of effective air 
cleaning technology and sensors technology for the engine and 
auxiliary power unit bleed air supplied to passenger cabins and 
flight decks of all pressurized aircraft. It would require the 
FAA submit a report to Congress within one year.
Conference Substitute
      Senate bill.

          EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR NEXTGEN

H212/S314

House bill
      Section 212 directs the Administrator to enter into an 
arrangement with the National Research Council to review the 
enterprise architecture for NextGen. Also, the Administrator 
must report to Congress within one year on the results of this 
review.
Senate bill
      Section 314 directs the Administrator to publish a report 
within six months, after consultation with stakeholders, 
including the development of: 1) RNP/RNAV procedures at 137 
airports; 2) a description of the activities required for their 
implementation; 3) an implementation plan that includes 
baseline and performance metrics; 4) assessment of the 
benefits/costs of using third parties to develop the 
procedures; and 5) a process for the creation of future RNP and 
RNAV procedures. The Administrator must implement 30 percent of 
the procedures within 18 months of enactment, 60 percent within 
36 months of enactment, and 100 percent by 2014. The 
Administrator is directed to create a plan for the 
implementation of procedures at the remaining airports across 
the country. It would require 25 percent of the procedures at 
these airports to be implemented within 18 months after 
enactment, 50 percent within 30 months after enactment; 75 
percent within 42 months after enactment, and 100 percent 
before 2016. The charter of the Performance Based Navigation 
ARC is extended and directs it to establish priorities for 
development of RNP/RNAV procedures based on potential safety 
and congestion benefits. It would require that the process of 
the development of such procedures be subject to a previously 
established environmental review process. The FAA is directed 
to provide Congress with a deployment plan for the 
implementation of a nationwide data communications system to 
support NextGen ATC, and a report evaluating the ability of 
NextGen technologies to facilitate improved performance 
standards for aircraft in the NAS.
Conference Substitute
      House bill modified to direct the FAA to ``enter into an 
arrangement for an independent external review'' to conduct the 
review, rather than the Administrator.

             AIRPORT SUSTAINABILITY PLANNING WORKING GROUP

H--/S221

House bill
      No similar provision.
Senate bill
      Section 221 establishes an airport sustainability working 
group within the FAA that would submit a report on their 
findings to the Administrator within one year of enactment. The 
working group would be comprised of 15 members including the 
Administrator and industry representatives.
Conference Substitute
      Senate bill with minor modifications.

 TITLE XI.--AIRPORT AND AIRWAY TRUST FUND PROVISIONS AND RELATED TAXES

 A. Extension of Taxes Funding the Airport and Airway Trust Fund (sec. 
1103 of the House bill, sec. 801 of the Senate amendment, sec. 1101 of 
 the conference agreement, and secs. 4261, 4271, and 4081 of the Code)

                              PRESENT LAW

Overview
      Excise taxes are imposed on amounts paid for commercial 
air passenger and freight transportation and on fuels used in 
commercial aviation and noncommercial aviation (i.e., 
transportation that is not ``for hire'') to fund the Airport 
and Airway Trust Fund. The present aviation excise taxes are as 
follows:
---------------------------------------------------------------------------
    \1\The domestic flight segment portion of the tax is adjusted 
annually (effective each January 1) for inflation (adjustments based on 
the changes in the consumer price index (the ``CPI'')).
    \2\The international travel facilities tax rate is adjusted 
annually for inflation (measured by changes in the CPI).
    \3\Like most other taxable motor fuels, aviation fuels are subject 
to an additional 0.1-cent-per-gallon excise tax to fund the Leaking 
Underground Storage Tank Trust Fund.

------------------------------------------------------------------------
          Tax (and Code section)                      Tax Rates
------------------------------------------------------------------------
Domestic air passengers (sec. 4261).......  7.5 percent of fare, plus
                                             $3.80 (2012) per domestic
                                             flight segment generally\1\
International travel facilities tax (sec.   $16.70 (2012) per arrival or
 4261).                                      departure\2\
Amounts paid for right to award free or     7.5 percent of amount paid
 reduced rate passenger air transportation
 (sec. 4261).
Air cargo (freight) transportation (sec.    6.25 percent of amount
 4271).                                      charged for domestic
                                             transportation; no tax on
                                             international cargo
                                             transportation
Aviation fuels (sec. 4081):\3\              ............................
1. Commercial aviation....................  4.3 cents per gallon
  2. Non-commercial (general) aviation:
    Aviation gasoline.....................  19.3 cents per gallon
    Jet fuel..............................  21.8 cents per gallon
------------------------------------------------------------------------

      All Airport and Airway Trust Fund excise taxes, except 
for 4.3 cents per gallon of the taxes on aviation fuels, are 
scheduled to expire after February 17, 2012. The 4.3-cents-per-
gallon fuels tax rate is permanent.
Taxes on transportation of persons by air
            Domestic air passenger excise tax
      Domestic air passenger transportation generally is 
subject to a two-part excise tax. The first component is an ad 
valorem tax imposed at the rate of 7.5 percent of the amount 
paid for the transportation. The second component is a flight 
segment tax. For 2012, the flight segment tax rate is $3.80.\4\ 
A flight segment is defined as transportation involving a 
single take-off and a single landing. For example, travel from 
New York to San Francisco, with an intermediate stop in 
Chicago, consists of two flight segments (without regard to 
whether the passenger changes aircraft in Chicago).
---------------------------------------------------------------------------
    \4\Sec. 4261(b)(1) and 4261(d)(4). Unless otherwise stated, all 
section references are to the Internal Revenue Code of 1986, as amended 
(the ``Code''). The Code provides for a $3 tax indexed annually for 
inflation, effective each January 1, resulting in the current rate of 
$3.80.
---------------------------------------------------------------------------
      The flight segment component of the tax does not apply to 
segments to or from qualified ``rural airports.'' For any 
calendar year, a rural airport is defined as an airport that in 
the second preceding calendar year had fewer than 100,000 
commercial passenger departures, and meets one of the following 
three additional requirements: (1) the airport is not located 
within 75 miles of another airport that had more than 100,000 
such departures in that year; (2) the airport is receiving 
payments under the Federal ``essential air service'' program; 
or (3) the airport is not connected by paved roads to another 
airport.\5\
---------------------------------------------------------------------------
    \5\In the case of an airport qualifying as ``rural'' because it is 
not connected by paved roads to another airport, only departures for 
flight segments of 100 miles or more are considered in calculating 
whether the airport has fewer than 100,000 commercial passenger 
departures. The Department of Transportation has published a list of 
airports that meet the definition of rural airports. See Rev. Proc. 
2005-45.
---------------------------------------------------------------------------
      The domestic air passenger excise tax applies to 
``taxable transportation.'' Taxable transportation means 
transportation by air that begins in the United States or in 
the portion of Canada or Mexico that is not more than 225 miles 
from the nearest point in the continental United States and 
ends in the United States or in such 225-mile zone. If the 
domestic transportation is paid for outside of the United 
States, it is taxable only if it begins and ends in the United 
States.
      For purposes of the domestic air passenger excise tax, 
taxable transportation does not include ``uninterrupted 
international air transportation.'' Uninterrupted international 
air transportation is any transportation that does not both 
begin and end in the United States or within the 225-mile zone 
and does not have a layover time of more than 12 hours. The tax 
on international air passenger transportation is discussed 
below.
            International travel facilities tax
      For 2012, international air passenger transportation is 
subject to a tax of $16.70 per arrival or departure in lieu of 
the taxes imposed on domestic air passenger transportation if 
the transportation begins or ends in the United States.\6\ The 
definition of international transportation includes certain 
purely domestic transportation that is associated with an 
international journey. Under these rules, a passenger traveling 
on separate domestic segments integral to international travel 
is exempt from the domestic passenger taxes on those segments 
if the stopover time at any point within the United States does 
not exceed 12 hours.
---------------------------------------------------------------------------
    \6\Secs. 4261(c) and 4261(d)(4). The international air facilities 
tax rate of $12 is indexed annually for inflation, effective each 
January 1, resulting in the current rate of $16.70.
---------------------------------------------------------------------------
      In the case of a domestic segment beginning or ending in 
Alaska or Hawaii, the tax applies to departures only and is 
$8.40 for calendar year 2012.
            ``Free'' travel
      Both the domestic air passenger tax and the use of 
international air facilities tax apply only to transportation 
for which an amount is paid. Thus, free travel, such as that 
awarded in ``frequent flyer'' programs and nonrevenue travel by 
airline industry employees, is not subject to tax. However, 
amounts paid to air carriers (in cash or in kind) for the right 
to award free or reduced-fare transportation are treated as 
amounts paid for taxable air transportation and are subject to 
the 7.5 percent ad valorem tax (but not the flight segment tax 
or the use of international air facilities tax). Examples of 
such payments are purchases of miles by credit card companies 
and affiliates (including airline affiliates) for use as 
``rewards'' to cardholders.
            Disclosure of air passenger transportation taxes on tickets 
                    and in advertising
      Transportation providers are subject to special penalties 
relating to the disclosure of the amount of the passenger taxes 
on tickets and in advertising. The ticket is required to show 
the total amount paid for such transportation and the tax. The 
same requirements apply to advertisements. In addition, if the 
advertising separately states the amount to be paid for the 
transportation or the amount of taxes, the total shall be 
stated at least as prominently as the more prominently stated 
of the tax or the amount paid for transportation. Failure to 
satisfy these disclosure requirements is a misdemeanor, upon 
conviction of which the guilty party is fined not more than 
$100 per violation.\7\
---------------------------------------------------------------------------
    \7\Sec. 7275.
---------------------------------------------------------------------------
Tax on transportation of property (cargo) by air
      Amounts equivalent to the taxes received from the 
transportation of property by air are transferred to the 
Airport and Airway Trust Fund. Domestic air cargo 
transportation is subject to a 6.25 percent ad valorem excise 
tax on the amount paid for the transportation.\8\ The tax 
applies only to transportation that both begins and ends in the 
United States. There is no disclosure requirement for the air 
cargo tax.
---------------------------------------------------------------------------
    \8\Sec. 4271.
---------------------------------------------------------------------------
Aviation fuel taxes
      The Code imposes excise taxes on gasoline used in 
commercial aviation (4.3 cents per gallon) and noncommercial 
aviation (19.3 cents per gallon), and on jet fuel (kerosene) 
and other aviation fuels used in commercial aviation (4.3 cents 
per gallon) and noncommercial aviation (21.8 cents per 
gallon).\9\ Amounts equivalent to these taxes are transferred 
to the Airport and Airway Trust Fund.
---------------------------------------------------------------------------
    \9\These fuels are also subject to an additional 0.1 cent per 
gallon for the Leaking Underground Storage Tank Trust Fund. If there 
was not a taxable sale of the fuel pursuant to section 4081 of the 
Code, a backup tax exists under section 4041(c) for such fuel that is 
subsequently sold or used in aviation.
---------------------------------------------------------------------------

                               HOUSE BILL

      The provision extends the present-law Airport and Airway 
Trust Fund excise taxes through September 30, 2014.
      Effective date.--The provision takes effect on the date 
of enactment.

                            SENATE AMENDMENT

      The provision extends the present-law Airport and Airway 
Trust Fund excise taxes through September 30, 2013.
      Effective date.--The provision takes effect on April 1, 
2011.

                          CONFERENCE AGREEMENT

      The conference agreement extends the present-law Airport 
and Airway Trust Fund excise taxes through September 30, 2015.
      Effective date.--The provision takes effect on February 
18, 2012.

  B. Extension of Airport and Airway Trust Fund Expenditure Authority 
 (sec. 1102 of the House bill, sec. 802 of the Senate amendment, sec. 
      1102 of the conference agreement, and sec. 9502 of the Code)

                              PRESENT LAW

In general
      The Airport and Airway Trust Fund was created in 1970 to 
finance a major portion of Federal expenditures on national 
aviation programs. Operation of the Airport and Airway Trust 
Fund is governed by the Internal Revenue Code (the 
``Code'')\10\ and authorizing statutes. The Code provisions 
govern deposit of revenues into the trust fund and approve the 
use of trust fund money (as provided by appropriation acts) for 
expenditure purposes in authorizing statutes as in effect on 
the date of enactment of the latest authorizing Act. The 
authorizing acts provide specific trust fund expenditure 
programs and purposes.
---------------------------------------------------------------------------
    \10\Unless otherwise stated, all section references are to the 
Internal Revenue Code of 1986, as amended.
---------------------------------------------------------------------------
      Authorized expenditures from the Airport and Airway Trust 
Fund include the following principal programs:
            1. Airport Improvement Program (airport planning, 
        construction, noise compatibility programs, and safety 
        projects);
            2. Facilities and Equipment program (costs of 
        acquiring, establishing, and improving the air traffic 
        control facilities);
            3. Research, Engineering, and Development program 
        (Federal Aviation Administration (``FAA'') research and 
        development activities);
            4. FAA Operations and Maintenance (``O&M'') 
        programs; and
            5. Certain other aviation-related programs 
        specified in authorizing acts.
      Part of the O&M programs is financed from General Fund 
monies as well.\11\
---------------------------------------------------------------------------
    \11\According to the Government Accountability Office, for FY 2000 
through FY 2010 the contribution of general revenues has increased to 
cover a larger share of the FAA's operation expenditures. United States 
Government Accountability Office, Airport and Airway Trust Fund: 
Declining Balance Raises Concerns Over Ability to Meet Future Demands, 
Statement of Gerald Dillingham, Director Physical Infrastructure Before 
the Committee on Finance, U.S. Senate (GAO-11-358T), February 3, 2011, 
p. 5, Fig. 2. Congressional Budget Office, Financing Federal Aviation 
Programs: Statement of Robert A. Sunshine before the House Committee on 
Ways and Means, May 7, 2009, p. 3.
---------------------------------------------------------------------------
Limits on Airport and Airway Trust Fund expenditures
      No expenditures are currently permitted to be made from 
the Airport and Airway Trust Fund after February 17, 2012. 
Because the purposes for which Airport and Airway Trust Fund 
monies are permitted to be expended are fixed as of the date of 
enactment of the Airport and Airway Extension Act of 2012, the 
Code must be amended to authorize new Airport and Airway Trust 
Fund expenditure purposes. In addition, the Code contains a 
specific enforcement provision to prevent expenditure of 
Airport and Airway Trust Fund monies for purposes not 
authorized under section 9502. Should such unapproved 
expenditures occur, no further aviation excise tax receipts 
will be transferred to the Airport and Airway Trust Fund. 
Rather, the aviation taxes would continue to be imposed, but 
the receipts would be retained in the General Fund.

                               HOUSE BILL

      The provision authorizes expenditures from the Airport 
and Airway Trust Fund through September 30, 2014, and revises 
the purposes for which money from the Airport and Airway Trust 
Fund funds are permitted to be expended to include those 
obligations authorized under the reauthorization legislation of 
2011 (i.e., the ``FAA Reauthorization and Reform Act of 2011,'' 
which sets forth aviation program expenditure purposes through 
September 30, 2014).
      Effective date.--The provision takes effect on date of 
enactment.

                            SENATE AMENDMENT

      The provision authorizes expenditures from the Airport 
and Airway Trust Fund through September 30, 2013. The provision 
also amends the list of authorizing statutes to include the 
``FAA Air Transportation Modernization and Safety Improvement 
Act,'' which sets forth aviation program expenditure purposes 
through September 30, 2013.
      Effective date.--The provision takes effect on April 1, 
2011.

                          CONFERENCE AGREEMENT

      The conference agreement authorizes expenditures from the 
Airport and Airway Trust Fund through September 30, 2015. The 
provision also amends the list of authorizing statutes to 
include the ``FAA Modernization and Reform Act of 2012,'' which 
sets forth aviation program expenditure purposes through 
September 30, 2015.
      Effective date.--The provision takes effect on February 
18, 2012.

C. Modification of Excise Tax on Kerosene Used in Aviation (sec. 803 of 
                         the Senate amendment)

                              PRESENT LAW

In general
      Under section 4081, an excise tax is imposed upon (1) the 
removal of any taxable fuel from a refinery or terminal,\12\ 
(2) the entry of any taxable fuel into the United States, or 
(3) the sale of any taxable fuel to any person who is not 
registered with the Internal Revenue Service (``IRS'') to 
receive untaxed fuel, unless there was a prior taxable removal 
or entry.\13\ The tax does not apply to any removal or entry of 
taxable fuel transferred in bulk by pipeline or vessel to a 
terminal or refinery if the person removing or entering the 
taxable fuel, the operator of such pipeline or vessel 
(excluding deep draft vessels), and the operator of such 
terminal or refinery are registered with the Secretary.\14\ If 
the bulk transfer exception applies, tax is not imposed until 
the fuel ``breaks bulk,'' i.e., when it is removed from the 
terminal, typically by rail car or truck, for delivery to a 
smaller wholesale facility or retail outlet, or removed 
directly from the terminal into the fuel tank of an 
aircraft.\15\
---------------------------------------------------------------------------
    \12\A ``terminal'' is a taxable fuel storage and distribution 
facility that is supplied by pipeline or vessel and from which taxable 
fuel may be removed at a rack. A ``rack'' is a mechanism capable of 
delivering taxable fuel into a means of transport other than a pipeline 
or vessel. A terminal can be located at an airport, or fuel may be 
delivered to the airport from a terminal located off the airport 
grounds.
    \13\Sec. 4081(a)(1).
    \14\Sec. 4081(a)(1)(B).
    \15\In general, the party liable for payment of the taxes when the 
fuel breaks bulk at the terminal is the ``position holder,'' the person 
shown on the records of the terminal facility as holding the inventory 
position in the fuel. However, when fuel is removed directly into the 
fuel tank of an aircraft for use in commercial aviation, the person who 
uses the fuel is liable for the tax. The fuel is treated as used when 
such fuel is removed into the fuel tank. Sec. 4081(a)(4).
---------------------------------------------------------------------------
      The term ``taxable fuel'' means gasoline, diesel fuel 
(including any liquid, other than gasoline, that is suitable 
for use as a fuel in a diesel-powered highway vehicle or 
train), and kerosene.\16\ The term includes kerosene used in 
aviation (jet fuel) as well as aviation gasoline.
---------------------------------------------------------------------------
    \16\Sec. 4083(a).
---------------------------------------------------------------------------
      Section 4041(c) provides a back-up tax for liquids (other 
than aviation gasoline) that are sold for use as a fuel in 
aircraft and that have not been previously taxed under section 
4081.
Kerosene for use in aviation
            In general
      Present law generally imposes a total tax of 24.4 cents 
per gallon on kerosene. However, reduced rates apply for 
kerosene removed directly from a terminal into the fuel tank of 
an aircraft.\17\ For kerosene removed directly from a terminal 
into the fuel tank of an aircraft for use in commercial 
aviation, the tax rate is 4.4 cents per gallon.\18\ For 
kerosene removed directly from a terminal into the fuel tank of 
an aircraft for use in noncommercial aviation, the tax rate is 
21.9 cents per gallon. All of these tax rates include 0.1 cent 
per gallon for the Leaking Underground Storage Tank Trust Fund. 
For kerosene removed directly from a terminal into the fuel 
tank of an aircraft for an exempt use (such as for the 
exclusive use of a State or local government), generally only 
the Leaking Underground Storage Tank Trust Fund tax of 0.1 cent 
per gallon applies.
---------------------------------------------------------------------------
    \17\If certain conditions are met, present law permits the removal 
of kerosene from a refueler truck, tanker, or tank wagon to be treated 
as a removal from a terminal for purposes of determining whether 
kerosene is removed directly into the fuel tank of an aircraft. A 
refueler truck, tanker, or tank wagon is treated as part of a terminal 
if: (1) the terminal is located within an airport; (2) any kerosene 
which is loaded in such truck, tanker, or tank wagon at such terminal 
is for delivery only into aircraft at the airport in which such 
terminal is located; and (3) no vehicle licensed for highway use is 
loaded with kerosene at such terminal, except in exigent circumstances 
identified by the Secretary in regulations. To qualify for the special 
rule, a refueler truck, tanker, or tank wagon must: (1) have storage 
tanks, hose, and coupling equipment designed and used for the purposes 
of fueling aircraft; (2) not be registered for highway use; and (3) be 
operated by the terminal operator (who operates the terminal rack from 
which the fuel is unloaded) or by a person that makes a daily 
accounting to such terminal operator of each delivery of fuel from such 
truck, tanker, or tank wagon. Sec. 4081(a)(3).
    \18\Tax is imposed at this rate if the commercial aircraft operator 
is registered with the IRS, and the fuel terminal is located within a 
secured area of an airport. The IRS has identified airports with 
secured areas in which a terminal is located. See Notice 2005-4, 2005-1 
C.B. 289, at sec. 4(d)(2)(ii) (2005) and Notice 2005-80, 2005-2 C.B. 
953, at sec. 3(c)(2) (2005). If the fuel terminal is located at an 
unsecured airport, the fuel is taxed at 21.9 cents per gallon if the 
fuel is removed directly from the terminal into the fuel tank of an 
aircraft.
---------------------------------------------------------------------------
      ``Commercial aviation'' generally means any use of an 
aircraft in the business of transporting by air persons or 
property for compensation or hire.\19\ Commercial aviation does 
not include transportation exempt from the ticket taxes and air 
cargo taxes by reason of sections 4281 or 4282 or by reason of 
section 4261(h) or 4261(i). Thus, small aircraft operating on 
nonestablished lines (sec. 4281), air transportation for 
affiliated group members (sec. 4282), air transportation for 
skydiving (sec. 4261(h)), and certain air transportation by 
seaplane (sec. 4261(i)) are excluded from the definition of 
commercial aviation, and accordingly are subject to the tax 
regime applicable to noncommercial aviation.
---------------------------------------------------------------------------
    \19\Sec. 4083(b).
---------------------------------------------------------------------------
            Refunds and credits to obtain the appropriate aviation tax 
                    rate
      If the kerosene is not removed directly into the fuel 
tank of an aircraft, the fuel is taxed at 24.4 cents per 
gallon, the rate applied to diesel fuel and kerosene used in 
highway vehicles. A claim for credit or payment may be made for 
the difference between the tax paid and the appropriate 
aviation rate (21.9 cents per gallon for noncommercial 
aviation, 4.4 cents per gallon for commercial aviation, and 0.1 
cent per gallon for an exempt use).\20\
---------------------------------------------------------------------------
    \20\Sec. 6427(l)(4).
---------------------------------------------------------------------------
      For noncommercial aviation, other than for exempt use, 
only the registered ultimate vendor may make the claim for the 
2.5-cent-per-gallon difference between the 24.4 cents per 
gallon rate and the noncommercial aviation rate of 21.9 cents 
per gallon.\21\ For commercial aviation and exempt use (other 
than State and local government use), the ultimate purchaser 
may make a claim for the difference in tax rates, or the 
ultimate purchaser may waive the right to make the claim for 
payment to the ultimate vendor.\22\ For State and local 
government use, the registered ultimate vendor is the proper 
claimant.\23\
---------------------------------------------------------------------------
    \21\Sec. 6427(l)(4)(C)(ii).
    \22\Sec. 6427(l)(4)(C)(i).
    \23\See sec. 6427(l)(5). Special rules apply if the kerosene is 
purchased with a credit card issued to a State or local government.
---------------------------------------------------------------------------
      Commercial aviation claimants are permitted to credit 
their fuel tax claims against their other excise tax 
liabilities, thereby reducing the amount of excise tax to be 
paid with the excise tax return.
            Transfers between the Highway Trust Fund and the Airport 
                    and Airway Trust Fund to account for aviation use
      Kerosene that is not removed directly from the terminal 
into an airplane (e.g., the jet fuel is transferred from the 
terminal by highway vehicle to the airport) is taxed at the 
highway fuel rate of 24.4 cents per gallon. The Highway Trust 
Fund is credited with 24.3 cents per gallon of the 24.4 cents 
per gallon imposed. The remaining 0.1 cent is credited to the 
Leaking Underground Storage Tank Trust Fund. If a claim for 
payment is later made indicating that the fuel was used in 
aviation, the Secretary then transfers to the Airport and 
Airway Trust Fund 4.3 cents per gallon for commercial aviation 
use and 21.8 cents per gallon for noncommercial aviation use. 
These transfers initially are based on estimates, and proper 
adjustments are made in amounts subsequently transferred to the 
extent prior estimates were in excess of, or less than, the 
amounts required to be transferred. Thus, to the extent claims 
for credit or payment are not made for the difference between 
the highway rate and the aviation rate, the Airport and Airway 
Trust Fund will not be credited for fuel used in aviation that 
was taxed at the 24.4 cents per gallon rate.
Aviation gasoline
      The tax on aviation gasoline is 19.4 cents per gallon 
(including a 0.1 cent per gallon Leaking Underground Storage 
Tank Trust Fund component). If aviation gasoline is used in 
commercial aviation, the ultimate purchaser may obtain a credit 
or payment in the amount of 15 cents per gallon, such that the 
tax rate on such gasoline is 4.4 cents per gallon.\24\ If 
aviation gasoline is sold for an exempt use, a credit or refund 
is allowable for all but the Leaking Underground Storage Tank 
Trust Fund tax (0.1 cent per gallon).\25\
---------------------------------------------------------------------------
    \24\Sec. 6421(f)(2).
    \25\Sec. 6416(a); sec. 6420 (farming purposes); sec. 6421(c); and 
sec. 6430.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision creates a separate category of kerosene for 
tax purposes: aviation-grade kerosene.\26\ Aviation-grade 
kerosene is taxed at 35.9 cents per gallon plus 0.1 cent per 
gallon for the Leaking Underground Storage Tank Trust Fund. 
Under the provision, aviation-grade kerosene used in 
noncommercial aviation will be taxed at the full rate. The rate 
of tax for aviation-grade kerosene used in commercial aviation 
and exempt use remains unchanged.\27\
---------------------------------------------------------------------------
    \26\Aviation-grade kerosene means, as defined by the IRS, kerosene-
type jet fuel covered by ASTM specification D1655, or military 
specification MIL-DTL-5624 (Grade JP-5), or MIL-DTL-83133E (Grade JP-
8). See section 4(b) of Notice 2005-4.
    \27\Accordingly, commercial aviation use will continue to be 
subject to a tax of 4.4 cents per gallon and exempt use will be subject 
to 0.1 cent per gallon.
---------------------------------------------------------------------------
      Because the tax on aviation-grade kerosene used in 
noncommercial aviation is equal to the full rate of tax 
collected, the provision repeals the ultimate vendor refund 
provisions for noncommercial aviation. In addition, the 
provision eliminates the inter-fund transfers from the Highway 
Trust Fund to the Airport and Airway Trust Fund for kerosene 
used in aviation. Instead, the taxes imposed on aviation-grade 
kerosene will be credited to the Airport and Airway Trust Fund 
only.\28\ The provision also provides a refund mechanism for 
aviation-grade kerosene used for a taxable purpose other than 
in an aircraft.
---------------------------------------------------------------------------
    \28\The 0.1 cent per gallon will continue to be transferred to the 
Leaking Underground Storage Tank Trust Fund.
---------------------------------------------------------------------------
      In the case of aviation-grade kerosene held on April 1, 
2011, by any person, a floor stocks tax is imposed equal to the 
tax that would have been imposed if the increased rates had 
been in effect before such date less the tax actually imposed 
on such fuel. The tax is to be paid at such time and in such 
manner as the Secretary shall prescribe.
      The floor stocks tax does not apply to fuel held 
exclusively for any use to the extent a refund or credit of tax 
is allowable under the Code. The floor stocks tax does not 
apply if the amount of fuel held by a person does not exceed 
2,000 gallons.
      For purposes of the floor stocks tax, a controlled group 
is treated as one person. ``Controlled group'' for these 
purposes means a parent-subsidiary, brother-sister, or combined 
corporate group with more than 50-percent ownership with 
respect to either combined voting power or total value. Under 
regulations, similar principles may apply to a group of persons 
under common control where one or more persons are not a 
corporation.
      All provisions of law, including penalties, applicable 
with respect to the taxes imposed by section 4081 also apply to 
the floor stocks taxes to the extent not inconsistent with the 
provisions of the provision. For purposes of determining 
receipts to the Airport and Airway Trust Fund, the floor stocks 
tax is treated as if it were a tax listed in section 9502(b)(1) 
(governing transfers of tax receipts to the Airport and Airway 
Trust Fund).
      Effective date.--The provision is generally effective for 
fuel removed, entered, or sold after March 31, 2011. The floor 
stocks tax is effective April 1, 2011.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.

 D. Air Traffic Control System Modernization Account (sec. 804 of the 
                           Senate amendment)

                              PRESENT LAW

      Under present law, there is no special sub-account of the 
Airport and Airway Trust Fund to which funds are dedicated for 
air traffic control system modernization.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision creates an Air Traffic Control System 
Modernization Account (``Modernization sub-account'') within 
the Airport and Airway Trust Fund to ensure sufficient funding 
is provided for modernization of the air traffic control 
system. The Modernization sub-account is supported through 
annual transfers of $400 million from the Airport and Airway 
Trust Fund that are attributable to the taxes on aviation-grade 
kerosene. The funds are available, subject to appropriation, 
for expenditures relating to the modernization of the air 
traffic control system. Use of the funds also may include 
facility and equipment account expenditures.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.

E. Treatment of Fractional Ownership Aircraft Program Flights (sec. 805 
of the Senate amendment, sec. 1103 of the conference agreement, and new 
                         sec. 4043 of the Code)

                              PRESENT LAW

      For excise tax purposes, fractional ownership aircraft 
flights are treated as commercial aviation. As commercial 
aviation, for 2012, such flights are subject to the ad valorem 
tax of 7.5 percent of the amount paid for the transportation, a 
$3.80 segment tax, and tax of 4.4 cents per gallon on fuel. For 
international flights, fractional ownership flights pay the 
$16.70 international travel facilities tax.
      For purposes of the FAA safety regulations, fractional 
ownership aircraft programs are treated as a special category 
of general aviation.\29\ Under those FAA regulations, a 
``fractional ownership program'' is defined as any system of 
aircraft ownership and exchange that consists of all of the 
following elements: (i) the provision for fractional ownership 
program management services by a single fractional ownership 
program manager on behalf of the fractional owners; (ii) two or 
more airworthy aircraft; (iii) one or more fractional owners 
per program aircraft, with at least one program aircraft having 
more than one owner; (iv) possession of at least a minimum 
fractional ownership interest in one or more program aircraft 
by each fractional owner; (v) a dry-lease aircraft exchange 
arrangement among all of the fractional owners; and (vi) multi-
year program agreements covering the fractional ownership, 
fractional ownership program management services, and dry-lease 
aircraft exchange aspects of the program.
---------------------------------------------------------------------------
    \29\14 CFR Part 91, subpart k.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the provision, transportation as part of a 
fractional ownership aircraft program is not classified as 
commercial aviation for Federal excise tax purposes. Instead, 
such flights would be subject to the increased Airport and 
Airway Trust Fund fuel tax rate for noncommercial aviation and 
an additional fuel surtax of 14.1 cents per gallon. For this 
purpose, a ``fractional ownership aircraft program'' is defined 
as a program in which:
             A single fractional ownership program 
        manager provides fractional ownership program 
        management services on behalf of the fractional owners;
             Two or more airworthy aircraft are part of 
        the program;
             There are one or more fractional owners 
        per program aircraft, with at least one program 
        aircraft having more than one owner;
             Each fractional owner possesses at least a 
        minimum fractional ownership interest in one or more 
        program aircraft;\30\
---------------------------------------------------------------------------
    \30\A ``minimum fractional ownership interest'' means: (1) A 
fractional ownership interest equal to or greater than one-sixteenth 
(1/16) of at least one subsonic, fixed wing or powered lift program 
aircraft; or (2) a fractional ownership interest equal to or greater 
than one-thirty-second (1/32) of at least one rotorcraft program 
aircraft. A ``fractional ownership interest'' is (1) the ownership 
interest in a program aircraft; (2) the holding of a multi-year 
leasehold interest in a program aircraft; or (3) the holding or a 
multi-year leasehold interest that is convertible into an ownership 
interest in a program aircraft.
---------------------------------------------------------------------------
             There exists a dry-lease aircraft exchange 
        arrangement among all of the fractional owners;\31\ and
---------------------------------------------------------------------------
    \31\A ``dry-lease aircraft exchange'' means an arrangement, 
documented by the written program agreements, under which the program 
aircraft are available, on an as-needed basis without crew, to each 
fractional owner.
---------------------------------------------------------------------------
             There are multi-year program agreements 
        covering the fractional ownership, fractional ownership 
        program management services, and dry-lease aircraft 
        exchange aspects of the program.
      The fuel taxes are dedicated to the Airport and Airway 
Trust Fund. Consistent with the general extension of the taxes 
dedicated to the Airport and Airway Trust Fund, the provision 
sunsets September 30, 2013.
      Effective date.--The provision is effective for taxable 
transportation provided after, and fuel used after, March 31, 
2011.

                          CONFERENCE AGREEMENT

      The conference agreement provides an exemption, through 
September 30, 2015, from the commercial aviation taxes (secs. 
4261, 4271 and the 4.4 cents-per-gallon tax on fuel) for 
certain fractional aircraft program flights. In place of the 
commercial aviation taxes, the conference agreement applies a 
fuel surtax to certain flights made as part of a fractional 
ownership program.
      Through September 30, 2015, these flights are treated as 
noncommercial aviation, subject to the fuel surtax and the base 
fuel tax for fuel used in noncommercial aviation.\32\ 
Specifically, the additional fuel surtax of 14.1 cents per 
gallon will apply to fuel used in a fractional program aircraft 
(1) for the transportation of a qualified fractional owner with 
respect to the fractional aircraft program of which such 
aircraft is a part, and (2) with respect to the use of such 
aircraft on the account of such a qualified owner. Such use 
includes positioning flights (flights in deadhead service).\33\ 
Through September 30, 2015, the commercial aviation taxes do 
not apply to fractional program aircraft uses subject to the 
fuel surtax. Under the conference agreement, flight 
demonstration, maintenance, and crew training flights by a 
fractional program aircraft are excluded from the fuel surtax 
and are subject to the noncommercial aviation fuel tax 
only.\34\ The fuel surtax of 14.1 cents per gallon sunsets 
September 30, 2021.
---------------------------------------------------------------------------
    \32\No inference is intended as to the treatment of these flights 
as noncommercial aviation under present law.
    \33\A flight in deadhead service is presumed subject to the fuel 
surtax unless the costs for such flight are separately billed to a 
person other than a qualified owner. For example, if the costs 
associated with a positioning flight of a fractional program aircraft 
are separately billed to a person chartering the aircraft, that 
positioning flight is treated as commercial aviation.
    \34\It is the understanding of the conferees that a prospective 
purchaser does not pay any amount for transportation by demonstration 
flights, and that if an amount were paid for the flight, the flight 
would be subject to the commercial aviation taxes and not treated as 
noncommercial aviation.
---------------------------------------------------------------------------
      A ``fractional program aircraft'' means, with respect to 
any fractional ownership aircraft program, any aircraft which 
is listed as a fractional program aircraft in the management 
specifications issued to the manager of such program by the 
Federal Aviation Administration under subpart K of part 91 of 
title 14, Code of Federal Regulations and is registered in the 
United States.
      A ``fractional ownership aircraft program'' is a program 
under which:
             A single fractional ownership program 
        manager provides fractional ownership program 
        management services on behalf of the fractional owners;
             There are one or more fractional owners 
        per program aircraft, with at least one program 
        aircraft having more than one owner;
             With respect to at least two fractional 
        program aircraft, none of the ownership interests in 
        such aircraft can be less than the minimum fractional 
        ownership interest, or held by the program manager;
             There exists a dry-lease aircraft exchange 
        arrangement among all of the fractional owners; and
             There are multi-year program agreements 
        covering the fractional ownership, fractional ownership 
        program management services, and dry-lease aircraft 
        exchange aspects of the program.
      The term ``qualified fractional owner'' means any 
fractional owner that has a minimum fractional ownership 
interest in at least one fractional program aircraft. A 
``minimum fractional ownership interest'' means: (1) A 
fractional ownership interest equal to or greater than one-
sixteenth (1/16) of at least one subsonic, fixed wing or 
powered lift program aircraft; or (2) a fractional ownership 
interest equal to or greater than one-thirty-second (1/32) of 
at least one rotorcraft program aircraft. A ``fractional 
ownership interest'' is (1) the ownership interest in a program 
aircraft; (2) the holding of a multi-year leasehold interest in 
a program aircraft; or (3) the holding or a multi-year 
leasehold interest that is convertible into an ownership 
interest in a program aircraft. A ``fractional owner'' means a 
person owning any interest (including the entire interest) in a 
fractional program aircraft.
      Amounts equivalent to the revenues from the fuel surtax 
are dedicated to the Airport and Airway Trust Fund.
      Effective date.--The provision is effective for taxable 
transportation provided after, uses of aircraft after, and fuel 
used after, March 31, 2012.

Termination of Exemption for Small Jet Aircraft on Nonestablished Lines 
    (sec. 806 of the Senate amendment, sec. 1107 of the conference 
                  agreement and sec. 4281 of the Code)

                              PRESENT LAW

      Under present law, transportation by aircraft with a 
certificated maximum takeoff weight of 6,000 pounds or less is 
exempt from the excise taxes imposed on the transportation of 
persons by air and the transportation of cargo by air when 
operating on a nonestablished line. Similarly, when such 
aircraft are operating on a flight for the sole purpose of 
sightseeing, the taxes imposed on the transportation or persons 
or cargo by air do not apply.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision repeals the exemption as it applies to 
turbine engine powered aircraft (jet aircraft).
      Effective date.--The provision is effective for 
transportation provided after March 31, 2011.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
provision, repealing the exemption as it applies to jet 
aircraft, effective for transportation provided after March 31, 
2012.

 F. Transparency in Passenger Tax Disclosures (sec. 807 of the Senate 
amendment, sec. 1104 of the conference agreement, and sec. 7275 of the 
                                 Code)

                              PRESENT LAW

      Transportation providers are subject to special penalties 
relating to the disclosure of the amount of the passenger taxes 
on tickets and in advertising. The ticket is required to show 
the total amount paid for such transportation and the tax. The 
same requirements apply to advertisements. In addition, if the 
advertising separately states the amount to be paid for the 
transportation or the amount of taxes, the total shall be 
stated at least as prominently as the more prominently stated 
of the tax or the amount paid for transportation. Failure to 
satisfy these disclosure requirements is a misdemeanor, upon 
conviction of which the guilty party is fined not more than 
$100 per violation.\35\
---------------------------------------------------------------------------
    \35\ Sec. 7275.
---------------------------------------------------------------------------
      There is no prohibition against airlines including other 
charges in the required passenger taxes disclosure (e.g., fuel 
surcharges retained by the commercial airline). In practice, 
some but not all airlines include such other charges in the 
required passenger taxes disclosure.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision prohibits all transportation providers from 
including amounts other than the passenger taxes imposed by 
section 4261 in the required disclosure of passenger taxes on 
tickets and in advertising when the amount of such tax is 
separately stated. Disclosure elsewhere on tickets and in 
advertising (e.g., as an amount paid for transportation) of 
non-tax charges is allowed.
      Effective date.--The provision is effective for 
transportation provided after March 31, 2011.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment, 
except the Effective date is for transportation provided after 
March 31, 2012.

G. Tax-Exempt Private Activity Bond Financing for Fixed-Wing Emergency 
 Medical Aircraft (sec. 808 of the Senate amendment, sec. 1105 of the 
           conference agreement, and sec. 147(e) of the Code)

                              PRESENT LAW

      Interest on bonds issued by State and local governments 
generally is excluded from gross income for Federal income tax 
purposes.\36\ Bonds issued by State and local governments may 
be classified as either governmental bonds or private activity 
bonds. Governmental bonds are bonds the proceeds of which are 
primarily used to finance governmental functions or which are 
repaid with governmental funds. In general, private activity 
bonds are bonds in which the State or local government serves 
as a conduit providing financing to nongovernmental persons 
(e.g., private businesses or individuals).\37\ The exclusion 
from income for State and local bonds does not apply to private 
activity bonds, unless the bonds are issued for certain 
permitted purposes (``qualified bonds'') and other Code 
requirements are met.\38\
---------------------------------------------------------------------------
    \36\Sec. 103(a).
    \37\See sec. 141 defining ``private activity bond.''
    \38\See sec. 103(b) and sec. 141(e).
---------------------------------------------------------------------------
      Section 147(e) of the Code provides, in part, that a 
private activity bond is not a qualified bond if issued as part 
of an issue and any portion of the proceeds of such issue is 
used for airplanes.\39\ The IRS has ruled that a helicopter is 
not an ``airplane'' for purposes of section 147(e).\40\
---------------------------------------------------------------------------
    \39\Other prohibited facilities include any skybox, or other 
private luxury box, health club facility, facility primarily used for 
gambling, or store the principal business of which is the sale of 
alcoholic beverages for consumption off premises. Sec. 147(e).
    \40\Rev. Rul. 2003-116, 2003-46 I.R.B. 1083, 2003-2 C.B. 1083, 
November 17, 2003, (released: October 29, 2003).
---------------------------------------------------------------------------
      A fixed-wing aircraft providing air transportation for 
emergency medical services and that is equipped for, and 
exclusively dedicated on that flight to, acute care emergency 
medical services is exempt from the air transportation excise 
taxes imposed by sections 4261 and 4271.\41\
---------------------------------------------------------------------------
    \41\Sec. 4261(g)(2).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision amends section 147(e) so that the 
prohibition on the use of proceeds for airplanes does not apply 
to any fixed-wing aircraft equipped for, and exclusively 
dedicated to, providing acute care emergency medical services 
(within the meaning of section 4261(g)(2)).
      Effective date.--The provision is effective for 
obligations issued after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

 H. Protection of Airport and Airway Trust Fund Solvency (sec. 809 of 
                         the Senate amendment)

                              PRESENT LAW

      The uncommitted cash balance in the Airport and Airway 
Trust Fund has declined significantly in recent years. At the 
end of Fiscal Year 2001, the uncommitted cash balance was $7.3 
billion. At the end of Fiscal Year 2010, the balance was 
approximately $770 million.\42\
---------------------------------------------------------------------------
    \42\Government Accountability Office, Airport and Airway Trust 
Fund: Declining Balance Raises Concerns Over Ability to Meet Future 
Demands, February 3, 2011, p. 5.
---------------------------------------------------------------------------
      The current statutory formula requires that estimated 
Airport and Airway Trust Fund receipts each year must equal 
trust fund expenditures. However, amounts appropriated from the 
Airport and Airway Trust Fund are based on revenue receipt 
projections and have exceeded the amounts actually deposited 
into the Airport and Airway Trust Fund, resulting in declines 
in the uncommitted cash balance.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision amends section 9502 to limit the budgetary 
resources initially made available each fiscal year from the 
Airport and Airway Trust Fund to 90 percent, rather than 100 
percent, of forecasted revenues for that year.
      Effective date.--The provision is effective for fiscal 
years 2012 and 2013.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision, but this matter is addressed by section 
104 of Title I of the conference agreement.

J. Rollover of Amounts Received in Airline Carrier Bankruptcy (sec. 810 
   of the Senate amendment and sec. 1106 of the conference agreement)

                              PRESENT LAW

      The Code provides for two types of individual retirement 
arrangements (``IRAs''): traditional IRAs and Roth IRAs.\43\ In 
general, contributions (other than a rollover contribution) to 
a traditional IRA may be deductible from gross income, and 
distributions from a traditional IRA are includible in gross 
income to the extent not attributable to a return of 
nondeductible contributions. In contrast, contributions to a 
Roth IRA are not deductible, and qualified distributions from a 
Roth IRA are excludable from gross income. Distributions from a 
Roth IRA that are not qualified distributions are includible in 
gross income to the extent attributable to earnings. In 
general, a qualified distribution is a distribution that (1) is 
made after the five taxable year period beginning with the 
first taxable year for which the individual first made a 
contribution to a Roth IRA, and (2) is made on or after the 
individual attains age 59\1/2\, death, or disability or which 
is a qualified special purpose distribution.
---------------------------------------------------------------------------
    \43\Traditional IRAs are described in section 408, and Roth IRAs 
are described in section 408A.
---------------------------------------------------------------------------
      The total amount that an individual may contribute to one 
or more IRAs for a year is generally limited to the lesser of: 
(1) a dollar amount ($5,000 for 2012); or (2) the amount of the 
individual's compensation that is includible in gross income 
for the year.\44\ As under the rules relating to traditional 
IRAs, a contribution of up to the dollar limit for each spouse 
may be made to a Roth IRA provided the combined compensation of 
the spouses is at least equal to the contributed amount.
---------------------------------------------------------------------------
    \44\The maximum contribution amount is increased for individuals 50 
years of age or older.
---------------------------------------------------------------------------
      If an individual makes a contribution to an IRA 
(traditional or Roth) for a taxable year, the individual is 
permitted to recharacterize (in a trustee-to-trustee transfer) 
the amount of that contribution as a contribution to the other 
type of IRA (traditional or Roth) before the due date for the 
individual's income tax return for that year.\45\ In the case 
of a recharacterization, the contribution will be treated as 
having been made to the transferee plan. The amount transferred 
must be accompanied by any net income allocable to the 
contribution and no deduction is allowed with respect to the 
contribution to the transferor plan. Both regular contributions 
and conversion contributions to a Roth IRA can be 
recharacterized as having been made to a traditional IRA. 
However, Treasury regulations limit the number of times a 
contribution for a taxable year may be recharacterized.\46\
---------------------------------------------------------------------------
    \45\ Sec. 408A(d)(6).
    \46\ Treas. Reg. sec. 1.408A-5.
---------------------------------------------------------------------------
      Taxpayers generally may convert a traditional IRA into a 
Roth IRA.\47\ The amount converted is includible in income as 
if a withdrawal had been made, except that the early 
distribution tax (discussed below) does not apply. However, the 
early distribution tax is applied if the taxpayer withdraws the 
amount within five years of the conversion.
---------------------------------------------------------------------------
    \47\ For taxable years beginning prior to January 1, 2010, 
taxpayers with modified AGI in excess of $100,000, and married 
taxpayers filing separate returns, were generally not permitted to 
convert a traditional IRA into a Roth IRA. Under the Tax Increase 
Prevention and Reconciliation Act of 2005, Pub. L. No. 109-222, these 
limits on conversion are repealed for taxable years beginning after 
December 31, 2009.
---------------------------------------------------------------------------
      If certain requirements are satisfied, a participant in 
an employer-sponsored qualified plan (which includes a tax-
qualified retirement plan described in section 401(a), an 
employee retirement annuity described in section 403(a), a tax-
sheltered annuity described in section 403(b), and a 
governmental section 457(b) plan) or a traditional IRA may roll 
over distributions from the plan, annuity or IRA into another 
plan, annuity or IRA. For distributions after December 31, 
2007, certain taxpayers also are permitted to make rollover 
contributions into a Roth IRA (subject to inclusion in gross 
income of any amount that would be includible were it not part 
of the rollover contribution).
      Under section 125 of the Worker, Retiree, and Employer 
Recovery Act of 2008 (``WRERA''),\48\ a ``qualified airline 
employee'' may contribute any portion of an ``airline payment 
amount'' to a Roth IRA within 180 days of receipt of such 
amount (or, if later, within 180 days of enactment of the 
provision). Such a contribution is treated as a qualified 
rollover contribution to the Roth IRA. Thus, the portion of the 
airline payment amount contributed to the Roth IRA is 
includible in gross income to the extent that such payment 
would be includible were it not part of the rollover 
contribution.
---------------------------------------------------------------------------
    \48\ Pub. L. No. 110-455.
---------------------------------------------------------------------------
      A qualified airline employee is an employee or former 
employee of a commercial passenger airline carrier who was a 
participant in a defined benefit plan maintained by the carrier 
which: (1) is qualified under section 401(a); and (2) was 
terminated or became subject to the benefit accrual and other 
restrictions applicable to plans maintained by commercial 
passenger airlines pursuant to section 402(b) of the Pension 
Protection Act of 2006 (``PPA'').
      An airline payment amount is any payment of any money or 
other property payable by a commercial passenger airline to a 
qualified airline employee: (1) under the approval of an order 
of a Federal bankruptcy court in a case filed after September 
11, 2001, and before January 1, 2007; and (2) in respect of the 
qualified airline employee's interest in a bankruptcy claim 
against the airline carrier, any note of the carrier (or amount 
paid in lieu of a note being issued), or any other fixed 
obligation of the carrier to pay a lump sum amount. An airline 
payment amount does not include any amount payable on the basis 
of the carrier's future earnings or profits. The amount that 
may be contributed to a Roth IRA is the gross amount of the 
payment; any reduction in the airline payment amount on account 
of employment tax withholding is disregarded.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The amendment expands the choices for recipients of 
airline payment amounts by allowing qualified airline employees 
to contribute airline payment amounts to a traditional IRA as a 
rollover contribution. An individual making such a rollover 
contribution may exclude the contributed airline payment amount 
from gross income in the taxable year in which the airline 
payment amount was paid.
      Qualified airline employees who made a qualified rollover 
contribution of an airline payment amount to a Roth IRA 
pursuant to WRERA are permitted to recharacterize all or a 
portion of the qualified rollover contribution as a rollover 
contribution to a traditional IRA by transferring, in a 
trustee-to-trustee transfer, the contribution (or a portion 
thereof) plus attributable earnings (or losses) from the Roth 
IRA. As in the case of a recharacterization under present law, 
the airline payment amount so transferred (with attributable 
earnings) is deemed to have been contributed to the traditional 
IRA at the time of the initial rollover contribution into the 
Roth IRA. The trustee-to-trustee transfer to a traditional IRA 
must be made within 180 days of the amendment's enactment.
      If an amount contributed to a Roth IRA as a rollover 
contribution is recharacterized as a rollover contribution to a 
traditional IRA, the amount so recharacterized may not be 
contributed to a Roth IRA as a qualified rollover contribution 
(i.e., reconverted to a Roth IRA) during the five taxable years 
immediately following the taxable year in which the transfer to 
the traditional IRA was made.
      Qualified airline employees who were eligible to make a 
qualified rollover to a Roth IRA under WRERA, but declined to 
do so, are now permitted to roll over the airline payment 
amount to a traditional IRA within 180 days of the receipt of 
the amount (or, if later, within 180 days of enactment of the 
amendment). As mentioned above, any portion of an airline 
payment amount recharacterized as a rollover contribution to a 
traditional IRA pursuant to the amendment is excluded from 
gross income in the taxable year in which the airline payment 
amount was paid to the qualified airline employee by the 
commercial passenger airline carrier. Individuals 
recharacterizing such contributions may file a claim for a 
refund until the later of: (1) the period of limitations under 
section 6511(a) (generally, three years from the time the 
return was filed or two years from the time the tax was paid, 
whichever period expires later); or (2) April 15, 2012.
      An airline payment amount does not fail to be treated as 
wages for purposes of Social Security and Medicare taxes under 
the Federal Insurance Contributions Act\49\ and section 209 of 
the Social Security Act, merely because the amount is excluded 
from gross income because it is rolled over into a traditional 
IRA pursuant to the amendment.
---------------------------------------------------------------------------
    \49\ Chapter 21 of the Code.
---------------------------------------------------------------------------
      Surviving spouses of qualified airline employees are 
granted the same rights as qualified airline employees under 
section 125 of WRERA and under the amendment.
      Effective date.--Effective for all transfers (made after 
date of enactment) of qualified airline payment amounts 
received before, on, or after date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
with three modifications. First, a qualified airline employee 
is not permitted to contribute (using either a rollover or 
recharacterization) an airline payment amount to a traditional 
IRA for a taxable year if, before the end of the taxable year, 
the employee was at any time a covered employee, as defined in 
section 162(m)(3),\50\ of the commercial passenger airline 
carrier making the qualified airline payment. Second, a 
qualified airline employee who was not at any time a covered 
employee may only roll over, or recharacterize, into a 
traditional IRA 90 percent of the aggregate amount of airline 
payment amounts received before the end of the taxable year. 
Third, individuals recharacterizing their contributions may 
file a claim for a refund until the later of: (1) the period of 
limitations under section 6511(a) (generally, three years from 
the time the return was filed or two years from the time the 
tax was paid, whichever period expires later); or (2) April 15, 
2013.
---------------------------------------------------------------------------
    \50\ Section 162(m) defines a covered employee as (1) the chief 
executive officer of the corporation (or an individual acting in such 
capacity) as of the close of the taxable year and (2) the four most 
highly compensated officers for the taxable year (other than the chief 
executive officer). Treas. Reg. sec. 1.162-27(c)(2) provides that 
whether an employee is the chief executive officer or among the four 
most highly compensated officers should be determined pursuant to the 
executive compensation disclosure rules promulgated under the 
Securities Exchange Act of 1934. Notice 2007-49, 2007-25 I.R.B. 1429 
provides that ``covered employee'' means any employee who is (1) the 
principal executive officer (or an individual acting in such capacity) 
defined in reference to the Exchange Act, or (2) among the three most 
highly compensated officers for the taxable year (other than the 
principal executive officer) to reflect the 2006 change by the 
Securities and Exchange Commission to its rules.
---------------------------------------------------------------------------

   K. Application of Levy to Payments to Federal Vendors Relating to 
              Property (sec. 811 of the Senate amendment)

                              PRESENT LAW

In general
      Levy is the IRS's administrative authority to seize a 
taxpayer's property, or rights to property, to pay the 
taxpayer's tax liability.\51\ Generally, the IRS is entitled to 
seize a taxpayer's property by levy if a Federal tax lien has 
attached to such property,\52\ and the IRS has provided both 
notice of intention to levy\53\ and notice of the right to an 
administrative hearing (the notice is referred to as a 
``collections due process notice'' or ``CDP notice'' and the 
hearing is referred to as the ``CDP hearing'')\54\ at least 30 
days before the levy is made. A Federal tax lien arises 
automatically when: (1) a tax assessment has been made; (2) the 
taxpayer has been given notice of the assessment stating the 
amount and demanding payment; and (3) the taxpayer has failed 
to pay the amount assessed within 10 days after the notice and 
demand.\55\
---------------------------------------------------------------------------
    \51\Sec. 6331(a). Levy specifically refers to the legal process by 
which the IRS orders a third party to turn over property in its 
possession that belongs to the delinquent taxpayer named in a notice of 
levy.
    \52\Ibid.
    \53\Sec. 6331(d).
    \54\Sec. 6330. The notice and the hearing are referred to 
collectively as the CDP requirements.
    \55\Sec. 6321.
---------------------------------------------------------------------------
      The notice of intent to levy is not required if the 
Secretary finds that collection would be jeopardized by delay. 
The standard for determining whether jeopardy exists is similar 
to the standard applicable when determining whether assessment 
of tax without following the normal deficiency procedures is 
permitted.\56\
---------------------------------------------------------------------------
    \56\Secs. 6331(d)(3), 6861.
---------------------------------------------------------------------------
      The CDP notice (and pre-levy CDP hearing) is not required 
if the Secretary finds that collection would be jeopardized by 
delay or the Secretary has served a levy on a State to collect 
a Federal tax liability from a State tax refund. In addition, a 
levy issued to collect Federal employment taxes is excepted 
from the CDP notice and the pre-levy CDP hearing requirement if 
the taxpayer subject to the levy requested a CDP hearing with 
respect to unpaid employment taxes arising in the two-year 
period before the beginning of the taxable period with respect 
to which the employment tax levy is served. In each of these 
three cases, however, the taxpayer is provided an opportunity 
for a hearing within a reasonable period of time after the 
levy.\57\
---------------------------------------------------------------------------
    \57\Sec. 6330(f).
---------------------------------------------------------------------------
Federal payment levy program
      To help the IRS collect taxes more effectively, the 
Taxpayer Relief Act of 1997\58\ authorized the establishment of 
the Federal Payment Levy Program (``FPLP''), which allows the 
IRS to continuously levy up to 15 percent of certain 
``specified payments,'' such as government payments to Federal 
contractors (including vendors) that are delinquent on their 
tax obligations. With respect to Federal payments to vendors of 
goods, services, or property, the continuous levy may be up to 
100 percent of each payment.\59\ The levy (either up to 15 
percent or up to 100 percent) generally continues in effect 
until the liability is paid or the IRS releases the levy.
---------------------------------------------------------------------------
    \58\Pub. L. No. 105-34.
    \59\Sec. 6331(h)(3). The word ``property'' was added to ``goods or 
services'' in section 301 of the ``3% Withholding Repeal and Job 
Creation Act,'' Pub. L. No. 112-56.
---------------------------------------------------------------------------
      Under FPLP, the IRS matches its accounts receivable 
records with Federal payment records maintained by the 
Department of the Treasury's Financial Management Service 
(``FMS''), such as certain Social Security benefit and Federal 
wage records. When these records match, the delinquent taxpayer 
is provided both the notice of intention to levy and the CDP 
notice. If the taxpayer does not respond after 30 days, the IRS 
can instruct FMS to levy the taxpayer's Federal payments. 
Subsequent payments are continuously levied until such time 
that the tax debt is paid or IRS releases the levy.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision amends section 6331(h)(3) to add 
``property'' to ``goods or services'' to allow the IRS to levy 
100 percent of any payment due to a Federal vendor with unpaid 
Federal tax liabilities, including payments made for the sale 
or lease of real estate and other types of property not 
considered ``goods or services.''
      Effective date.--The provision is effective for levies 
issued after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision. Section 6331(h)(3) was amended to add 
``property'' to ``goods or services'' to allow the IRS to levy 
100 percent of any payment due to a Federal vendor with unpaid 
Federal tax liabilities in section 301 of the ``3% Withholding 
Repeal and Job Creation Act,'' Pub. L. No. 112-56.

L. Modification of Control Definition for Purposes of Section 249 (sec. 
812 of the Senate amendment, sec. 1108 of the conference agreement, and 
                         sec. 249 of the Code)

                              PRESENT LAW

      In general, where a corporation repurchases its 
indebtedness for a price in excess of the adjusted issue price, 
the excess of the repurchase price over the adjusted issue 
price (the ``repurchase premium'') is deductible as 
interest.\60\ However, in the case of indebtedness that is 
convertible into the stock of (1) the issuing corporation, (2) 
a corporation in control of the issuing corporation, or (3) a 
corporation controlled by the issuing corporation, section 249 
provides that any repurchase premium is not deductible to the 
extent it exceeds ``a normal call premium on bonds or other 
evidences of indebtedness which are not convertible.''\61\
---------------------------------------------------------------------------
    \60\See Treas. Reg. sec. 1.163-7(c).
    \61\Regulations under section 249 provide that ``[f]or a 
convertible obligation repurchased on or after March 2, 1998, a call 
premium specified in dollars under the terms of the obligation is 
considered to be a normal call premium on a nonconvertible obligation 
if the call premium applicable when the obligation is repurchased does 
not exceed an amount equal to the interest (including original issue 
discount) that otherwise would be deductible for the taxable year of 
repurchase (determined as if the obligation were not repurchased).'' 
Treas. Reg. sec. 1.249-1(d)(2). Where a repurchase premium exceeds a 
normal call premium, the repurchase premium is still deductible to the 
extent that it is attributable to the cost of borrowing (e.g., a change 
in prevailing yields or the issuer's creditworthiness) and not 
attributable to the conversion feature. See Treas. Reg. sec. 1.249-
1(e).
---------------------------------------------------------------------------
      For purposes of section 249, the term ``control'' has the 
meaning assigned to such term by section 368(c). Section 368(c) 
defines ``control'' as ``ownership of stock possessing at least 
80 percent of the total combined voting power of all classes of 
stock entitled to vote and at least 80 percent of the total 
number of shares of all other classes of stock of the 
corporation.'' Thus, section 249 can apply to debt convertible 
into the stock of the issuer, the parent of the issuer, or a 
first-tier subsidiary of the issuer.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision modifies the definition of ``control'' in 
section 249(b)(2) to incorporate indirect control relationships 
of the nature described in section 1563(a)(1). Section 
1563(a)(1) defines a parent-subsidiary controlled group as one 
or more chains of corporations connected through stock 
ownership with a common parent corporation if (1) stock 
possessing at least 80 percent of the total combined voting 
power of all classes of stock entitled to vote or at least 80 
percent of the total value of shares of all classes of stock of 
each of the corporations, except the common parent corporation, 
is owned (within the meaning of subsection (d)(1)) by one or 
more of the other corporations; and (2) the common parent 
corporation owns (within the meaning of subsection (d)(1)) 
stock possessing at least 80 percent of the total combined 
voting power of all classes of stock entitled to vote or at 
least 80 percent of the total value of shares of all classes of 
stock of at least one of the other corporations, excluding, in 
computing such voting power or value, stock owned directly by 
such other corporations.
      Effective date.--The provision is effective for 
repurchases after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
provision.

M. Repeal of Expansion of Information Reporting Requirements (sec. 1101 
                        of the Senate amendment)

                              PRESENT LAW

      A variety of information reporting requirements apply 
under present law.\62\ These requirements are intended to 
assist taxpayers in preparing their income tax returns and to 
help the IRS determine whether such returns are correct and 
complete. The primary provision governing information reporting 
by payors requires an information return by every person 
engaged in a trade or business who makes payments for services 
or determinable gains to any one payee aggregating $600 or more 
in any taxable year in the course of that payor's trade or 
business.\63\ Payments subject to reporting include fixed or 
determinable income or compensation, but do not include 
payments for goods or certain enumerated types of payments that 
are subject to other specific reporting requirements.\64\ The 
payor is required to provide the recipient of the payment with 
an annual statement showing the aggregate payments made and 
contact information for the payor.\65\ The regulations 
generally provide exceptions from reporting of payments to 
corporations,\66\ exempt organizations, governmental entities, 
international organizations, or retirement plans.\67\ However, 
the following types of payments to corporations must be 
reported: Medical and health care payments;\68\ fish purchases 
for cash;\69\ attorney's fees;\70\ gross proceeds paid to an 
attorney;\71\ substitute payments in lieu of dividends or tax-
exempt interest;\72\ and payments by a Federal executive agency 
for services.\73\
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    \62\ Secs. 6031 through 6060.
    \63\Sec. 6041(a). Information returns are generally submitted 
electronically on Forms 1096 and Forms 1099, although certain payments 
to beneficiaries or employees may require use of Forms W-3 and W-2, 
respectively. Treas. Reg. sec. 1.6041-1(a)(2). The requirement that 
businesses report certain payments is generally not applicable to 
payments by persons engaged in a passive investment activity. However, 
for a brief period starting in 2011, the recipients of rental income 
from real estate were generally subject to the same information 
reporting requirements as taxpayers engaged in a trade or business such 
that recipients of rental income making payments of $600 or more to a 
service provider (such as a plumber, painter, or accountant) in the 
course of earning rental income were required to provide an information 
return to the IRS and to the service provider. Small Business Jobs Act 
of 2010, Pub. L. No. 111-240, sec. 2101, September 27, 2010. This rule 
was repealed in the Comprehensive 1099 Taxpayer Protection and 
Repayment of Exchange Subsidy Overpayments Act of 2011, Pub. L. No. 
112-9, sec. 3, April 14, 2011.
    \64\Sec. 6041(a) requires reporting as to ``other fixed or 
determinable gains, profits, and income (other than payments to which 
section 6042(a)(1), 6044(a)(1), 6047(c), 6049(a) or 6050N(a) applies 
and other than payments with respect to which a statement is required 
under authority of section 6042(a), 6044(a)(2) or 6045)[.]'' The 
payments thus excepted include most interest, royalties, and dividends.
    \65\Sec. 6041(d).
    \66\The regulatory carveout for payments to corporations was 
expressly overridden for payments made after December 31, 2011 in the 
Patient Protection and Affordable Care Act (``PPACA''), Pub. L. No. 
111-148, sec. 9006 March 23, 2010, which expanded the class of payments 
subject to reporting to include payments to corporations and payments 
of gross proceeds paid in consideration for any type of property. 
However, these rules were repealed in the Comprehensive 1099 Taxpayer 
Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, 
Pub. L. No. 112-9, sec. 2, April 14, 2011.
    \67\Treas. Reg. sec. 1.6041-3(p). Certain for-profit health 
provider corporations are not covered by this general exception, 
including those organizations providing billing services for such 
companies.
    \68\Sec. 6050T.
    \69\Sec. 6050R.
    \70\Sec. 6045(f)(1) and (2); Treas. Reg. secs. 1.6041-1(d)(2) and 
1.6045-5(d)(5).
    \71\Ibid.
    \72\Sec. 6045(d).
    \73\Sec. 6041A(d)(3). In addition, section 6050M provides that the 
head of every Federal executive agency that enters into certain 
contracts must file an information return reporting the contractor's 
name, address, TIN, date of contract action, amount to be paid to the 
contractor, and any other information required by Forms 8596 
(Information Return for Federal Contracts) and 8596A (Quarterly 
Transmittal of Information Returns for Federal Contracts).
---------------------------------------------------------------------------
      Detailed rules are provided for the reporting of various 
types of investment income, including interest, dividends, and 
gross proceeds from brokered transactions (such as a sale of 
stock).\74\ In general, the requirement to file Form 1099 
applies with respect to amounts paid to U.S. persons and is 
linked to the backup withholding rules of section 3406. Thus, a 
payor of interest, dividends or gross proceeds generally must 
request that a U.S. payee (other than certain exempt 
recipients) furnish a Form W-9 providing that person's name and 
taxpayer identification number.\75\ That information is then 
used to complete the Form 1099.
---------------------------------------------------------------------------
    \74\Secs. 6042 (dividends), 6045 (broker reporting) and 6049 
(interest), as well as the Treasury regulations thereunder.
    \75\See Treas. Reg. sec. 31.3406(h)-3.
---------------------------------------------------------------------------
      Failure to comply with the information reporting 
requirements results in penalties, which may include a penalty 
for failure to file the information return,\76\ and a penalty 
for failure to furnish payee statements,\77\ or failure to 
comply with other various reporting requirements.\78\
---------------------------------------------------------------------------
    \76\Sec. 6721. The penalty for failure to file an information 
return generally is $100 for each return for which such failure occurs. 
The total penalty imposed on a person for all failures during a 
calendar year cannot exceed $1,500,000. Additionally, special rules 
apply to reduce the per-failure and maximum penalties where the failure 
is corrected within a specified period. Small Business Jobs Act of 
2010, Pub. L. No. 111-240, sec. 2102, September 27, 2010.
    \77\Sec. 6722. The penalty for failure to provide a correct payee 
statement is $100 for each statement with respect to which such failure 
occurs, with the total penalty for a calendar year not to exceed 
$1,500,000. Special rules apply that increase the per-statement and 
total penalties where there is intentional disregard of the requirement 
to furnish a payee statement. Small Business Jobs Act of 2010, Pub. L. 
No. 111-240, sec. 2102, September 27, 2010.
    \78\Sec. 6723. The penalty for failure to timely comply with a 
specified information reporting requirement is $50 per failure, not to 
exceed $100,000 for a calendar year.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provisions repeals section 9006 of the Patient 
Protection and Affordable Care Act, Pub. L. No. 111-148, which 
expanded the class of payments subject to reporting to include 
payments made to corporations and payments of gross proceeds 
paid in consideration for any type of property.
      Effective date.--The provision is effective on the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision. The expanded information reporting 
requirements for payments made to corporations and for payments 
of gross proceeds paid in consideration for any type of 
property were repealed in section 2 of the ``Comprehensive 1099 
Taxpayer Protection and Repayment of Exchange Subsidy 
Overpayments Act of 2011,'' Pub. L. No. 112-9.

                       N. Tax Complexity Analysis

      Section 4022(b) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 (the ``IRS Reform Act'') 
requires the Joint Committee on Taxation (in consultation with 
the Internal Revenue Service and the Department of the 
Treasury) to provide a tax complexity analysis. The complexity 
analysis is required for all legislation reported by the Senate 
Committee on Finance, the House Committee on Ways and Means, or 
any committee of conference if the legislation includes a 
provision that directly or indirectly amends the Internal 
Revenue Code (the ``Code'') and has widespread applicability to 
individuals or small businesses.
      The staff of the Joint Committee on Taxation has 
determined that a complexity analysis is not required under 
section 4022(b) of the IRS Reform Act because the bill contains 
no provisions that have ``widespread applicability'' to 
individuals or small businesses.

     TITLE XII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010

                          COMPLIANCE PROVISION

H1201/S901

House bill
      Section 1201 specifies that the budgetary effects of this 
Act, in complying with the Statutory Pay-As-You-Go act of 2010, 
shall be determined by reference to the latest statement titled 
``Budgetary Effects of PAYGO Legislation'' for this Act.
Senate bill
      Section 901 provides that the budgetary effects of the 
amendment, for purposes of complying with the Statutory Pay-As-
You-Go-Act of 2010, shall be determined by reference to the 
``Budgetary Effects'' statement of the House and Senate Budget 
Committee Chairmen provided that such statement has been 
submitted prior to the vote on passage in the House acting 
first on this conference report or amendments between the 
Houses.
Conference Substitute
      Senate bill.

                      TITLE XIII--COMMERCIAL SPACE

              COMMERCIAL SPACE LAUNCH LICENSE REQUIREMENTS

H1301/S--

House bill
      Section 1301 would extend the original eight year 
learning period passed in the Commercial Space Launch 
Amendments Act of 2004, which expires in 2012. Current law 
includes an eight-year regulatory ``waiting period,'' starting 
with the first FAA-licensed launch of a ``spaceflight 
participant'' (a person who pays to experience spaceflight), 
during which commercial spaceflight providers would not be 
subject to any FAA regulation, barring any perceived or 
realized endangerment of public safety.
Senate bill
      No similar provision.
Conference Substitute
      House bill modified to prohibit proposing regulations 
until October 1, 2015. Nothing in this provision is intended to 
prohibit the FAA and industry stakeholders from entering into 
discussions intended to prepare the FAA for its role in 
appropriately regulating the commercial space flight industry 
when this provision expires.

   SENATE TITLE X--RESCISSION OF UNUSED TRANSPORTATION EARMARKS AND 
                     GENERAL REPORTING REQUIREMENTS

                              DEFINITIONS

H--/S1001

House bill
      No similar provision.
Senate bill
      Section 1001 defines the term ``earmark'' as a 
congressionally directed spending item as defined by Senate 
rules or a congressional earmark as defined by the rules of the 
House.
Conference Substitute
      House bill.

                               RESCISSION

H--/S1002

House bill
      No similar provision.
Senate bill
      Section 1002 rescinds DOT earmark funds with more than 90 
percent of the amount remaining available for obligation at the 
end of the 9th fiscal year following the fiscal year in which 
the earmark was made available for obligation. Also, it 
provides an exception if the Secretary of Transportation 
determines that additional obligation of the earmark is likely 
to occur during the following 12 month period.
Conference Substitute
      House bill.

                 AGENCY WIDE IDENTIFICATION AND REPORTS

H--/S1003

House bill
      No similar provision.
Senate bill
      Section 1003 requires each federal agency to identify and 
report every project that is an earmark with an unobligated 
balance at the end of each fiscal year to the Director of the 
Office of Management and Budget (OMB). Also, it requires the 
Director of OMB to submit an annual report on these earmarks to 
Congress and publically post the report on the OMB website.
Conference Substitute
      House bill.

     SENATE TITLE XI--REPEAL OF EXPANSION OF INFORMATION REPORTING 
                              REQUIREMENTS

       REPEAL OF EXPANSION OF INFORMATION REPORTING REQUIREMENTS

H--/S1101

House bill
      No similar provision.
Senate bill
      Section 1101 repeals a section of the Patient Protection 
and Affordable Care Act which required businesses to report 
purchases of $600 or more to the Internal Revenue Service 
(IRS).
Conference Substitute
      Senate bill dropped because the language was used to 
create P.L. 112-9, The Comprehensive 1099 Taxpayer Protection 
and Repayment of Exchange Subsidy Overpayments Act of 2011.

     TITLE XII--EMERGENCY MEDICAL SERVICE PROVIDERS PROTECTION ACT

     DALE LONG EMERGENCY MEDICAL SERVICES PROVIDERS PROTECTION ACT

H--/S1201, 1211, 1212, 1213

House bill
      No similar provision.
Senate bill
      Section 1201 provides liability protection for volunteer 
pilots that fly for public benefit, including transportation at 
no cost to financially needy medical patients for medical 
treatment, evaluation and diagnosis; flights for humanitarian 
and charitable purposes; and other flights of compassion.
      Section 1211 provides a title for the subtitle, the 
``Volunteer Pilot Protection Act of 2011.''
      Section 1212 states findings of Congress on the necessity 
of protections for pilots who volunteer their services.
      Section 1213 allows pilots who operate volunteer flights 
for most charitable institutions to receive reimbursement from 
those institutions for some operations costs including fuel.
Conference Substitute
      No provision.
      Pursuant to clause 9 of rule XXI of the Rules of the 
House of Representatives, no provision in this conference 
report or joint explanatory statement includes a congressional 
earmark, limited tax benefit, or limited tariff benefit.
                From the Committee on Transportation and 
                Infrastructure, for consideration of the House 
                bill and the Senate amendment, and 
                modifications committed to conference:
                                   John L. Mica,
                                   Thomas E. Petri,
                                   John J. Duncan, Jr.,
                                   Sam Graves,
                                   Bill Shuster,
                                   Jean Schmidt,
                                   Chip Cravaack,
                                   Nick J. Rahall II,
                                   Peter A. DeFazio,
                                   Jerry F. Costello,
                                   Leonard L. Boswell,
                                   Russ Carnahan,
                From the Committee on Science, Space, and 
                Technology, for consideration of sections 102, 
                105, 201, 202, 204, 208, 209, 212, 220, 321, 
                324, 326, 812, title X, and title XIII of the 
                House bill and sections 102, 103, 106, 216, 
                301, 302, 309, 320, 327, title VI, and section 
                732 of the Senate amendment, and modifications 
                committed to conference:
                                   Ralph M. Hall,
                                   Steven M. Palazzo,
                                   Eddie Bernice Johnson,
                From the Committee on Ways and Means, for 
                consideration of title XI of the House bill and 
                titles VIII and XI of the Senate amendment, and 
                modifications committed to conference:
                                   Dave Camp,
                                   Patrick J. Tiberi,
                                   Sander M. Levin,
                                 Managers on the Part of the House.

                                   John D. Rockefeller IV,
                                   Barbara Boxer,
                                   Bill Nelson,
                                   Maria Cantwell,
                                   Kay Bailey Hutchison,
                                   Johnny Isakson,
                From the Committee on Finance:
                                   Max Baucus,
                                Managers on the Part of the Senate.

                                  
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