```

[House Report 115-296]
[From the U.S. Government Publishing Office]

115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-296

======================================================================
  
  21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT

                               ----------                              

                                 REPORT

                                 OF THE

                      COMMITTEE ON TRANSPORTATION
                           AND INFRASTRUCTURE

                             together with

                            DISSENTING VIEWS

                        [TO ACCOMPANY H.R. 2997]
                        

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

               September 6, 2017.--Ordered to be printed

-----------------------------------------------------------------------------
                                                
          

21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT

-----------------------------------------------------------------------------

115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-296

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

   21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT

                               ----------                              

                                 REPORT

                                 OF THE

                      COMMITTEE ON TRANSPORTATION
                           AND INFRASTRUCTURE

                             together with

                            DISSENTING VIEWS

                        [TO ACCOMPANY H.R. 2997]
                        

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

               September 6, 2017.--Ordered to be printed

                                 __________
                               

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
26-747 PDF                  WASHINGTON : 2017      

_______________________________________________________________________

              
               
115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 115-296               
               
======================================================================

 
   21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT

                                _______
                                

 September 6, 2017.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2997]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2997) to transfer operation of air 
traffic services currently provided by the Federal Aviation 
Administration to a separate not-for-profit corporate entity, 
to reauthorize programs of the Federal Aviation Administration, 
and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................   102
Background and Need for Legislation..............................   102
Hearings and Roundtables.........................................   123
Legislative History and Consideration............................   127
Committee Votes..................................................   130
Committee Oversight Findings.....................................   151
New Budget Authority and Tax Expenditures........................   151
Congressional Budget Office Cost Estimate........................   151
Performance Goals and Objectives.................................   168
Advisory of Earmarks.............................................   169
Duplication of Federal Programs..................................   169
Disclosure of Directed Rulemakings...............................   169
Federal Mandate Statement........................................   171
Preemption Clarification.........................................   171
Advisory Committee Statement.....................................   171
Applicability of Legislative Branch..............................   172
Section-by-Section Analysis of Legislation.......................   172
Changes in Existing Law Made by the Bill, as Reported............   213
Dissenting Views.................................................   458

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``21st Century 
Aviation Innovation, Reform, and Reauthorization Act'' or the ``21st 
Century AIRR Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. 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. Facilities and equipment.
Sec. 103. FAA operations.
Sec. 104. Adjustment to AIP program funding.
Sec. 105. Funding for aviation programs.
Sec. 106. Applicability.

                 Subtitle B--Passenger Facility Charges

Sec. 111. Passenger facility charge modernization.
Sec. 112. Pilot program for passenger facility charge authorizations.

         Subtitle C--Airport Improvement Program Modifications

Sec. 121. Clarification of airport obligation to provide FAA airport 
space.
Sec. 122. Mothers' rooms at airports.
Sec. 123. Extension of competitive access reports.
Sec. 124. Grant assurances.
Sec. 125. Government share of project costs.
Sec. 126. Updated veterans' preference.
Sec. 127. Special rule.
Sec. 128. Marshall Islands, Micronesia, and Palau.
Sec. 129. Nondiscrimination.
Sec. 130. State block grant program expansion.
Sec. 131. Midway Island Airport.
Sec. 132. Property conveyance releases.
Sec. 133. Minority and disadvantaged business participation.
Sec. 134. Contract tower program.
Sec. 135. Airport access roads in remote locations.
Sec. 136. Buy America requirements.

        Subtitle D--Airport Noise and Environmental Streamlining

Sec. 151. Recycling plans for airports.
Sec. 152. Pilot program sunset.
Sec. 153. Extension of grant authority for compatible land use planning 
and projects by State and local governments.
Sec. 154. Updating airport noise exposure maps.
Sec. 155. Stage 3 aircraft study.
Sec. 156. Addressing community noise concerns.
Sec. 157. Study on potential health impacts of overflight noise.
Sec. 158. Environmental mitigation pilot program.
Sec. 159. Aircraft noise exposure.
Sec. 160. Community involvement in FAA NextGen projects located in 
metroplexes.
Sec. 161. Critical habitat on or near airport property.
Sec. 162. Clarification of reimbursable allowed costs of FAA memoranda 
of agreement.

         TITLE II--AMERICAN AIR NAVIGATION SERVICES CORPORATION

Sec. 201. Purposes.

       Subtitle A--Establishment of Air Traffic Services Provider

Sec. 211. American Air Navigation Services Corporation.

            Subtitle B--Amendments to Federal Aviation Laws

Sec. 221. Definitions.
Sec. 222. Sunset of FAA air traffic entities and officers.
Sec. 223. Role of Administrator.
Sec. 224. Emergency powers.
Sec. 225. Presidential transfers in time of war.
Sec. 226. Airway capital investment plan before date of transfer.
Sec. 227. Aviation facilities before date of transfer.
Sec. 228. Judicial review.
Sec. 229. Civil penalties.

                       Subtitle C--Other Matters

Sec. 241. Use of Federal technical facilities.
Sec. 242. Ensuring progress on NextGen priorities before date of 
transfer.
Sec. 243. Severability.
Sec. 244. Prohibition on receipt of Federal funds.

               TITLE III--FAA SAFETY CERTIFICATION REFORM

                     Subtitle A--General Provisions

Sec. 301. Definitions.
Sec. 302. Safety Oversight and Certification Advisory Committee.

               Subtitle B--Aircraft Certification Reform

Sec. 311. Aircraft certification performance objectives and metrics.
Sec. 312. Organization designation authorizations.
Sec. 313. ODA review.
Sec. 314. Type certification resolution process.
Sec. 315. Safety enhancing equipment and systems for small general 
aviation airplanes.
Sec. 316. Review of certification process for small general aviation 
airplanes.

                  Subtitle C--Flight Standards Reform

Sec. 331. Flight standards performance objectives and metrics.
Sec. 332. FAA task force on flight standards reform.
Sec. 333. Centralized safety guidance database.
Sec. 334. Regulatory Consistency Communications Board.

                      Subtitle D--Safety Workforce

Sec. 341. Safety workforce training strategy.
Sec. 342. Workforce review.

                   Subtitle E--International Aviation

Sec. 351. Promotion of United States aerospace standards, products, and 
services abroad.
Sec. 352. Bilateral exchanges of safety oversight responsibilities.
Sec. 353. FAA leadership abroad.
Sec. 354. Registration, certification, and related fees.

                            TITLE IV--SAFETY

                     Subtitle A--General Provisions

Sec. 401. FAA technical training.
Sec. 402. Safety critical staffing.
Sec. 403. International efforts regarding tracking of civil aircraft.
Sec. 404. Aircraft data access and retrieval systems.
Sec. 405. Advanced cockpit displays.
Sec. 406. Marking of towers.
Sec. 407. Cabin evacuation.
Sec. 408. ODA staffing and oversight.
Sec. 409. Funding for additional safety needs.
Sec. 410. Funding for additional FAA licensing needs.
Sec. 411. Emergency medical equipment on passenger aircraft.
Sec. 412. HIMS program.
Sec. 413. Acceptance of voluntarily provided safety information.
Sec. 414. Flight attendant duty period limitations and rest 
requirements.
Sec. 415. Secondary cockpit barriers.
Sec. 416. Aviation maintenance industry technical workforce.
Sec. 417. Critical airfield markings.

                 Subtitle B--Unmanned Aircraft Systems

Sec. 431. Definitions.
Sec. 432. Codification of existing law; additional provisions.
Sec. 433. Unmanned aircraft test ranges.
Sec. 434. Sense of Congress regarding unmanned aircraft safety.
Sec. 435. UAS privacy review.
Sec. 436. Public UAS operations by Tribal governments.
Sec. 437. Evaluation of aircraft registration for small unmanned 
aircraft.
Sec. 438. Study on roles of governments relating to low-altitude 
operation of small unmanned aircraft.
Sec. 439. Study on financing of unmanned aircraft services.
Sec. 440. Update of FAA comprehensive plan.
Sec. 441. Cooperation related to certain counter-UAS technology.

                   TITLE V--AIR SERVICE IMPROVEMENTS

           Subtitle A--Airline Customer Service Improvements

Sec. 501. Reliable air service in American Samoa.
Sec. 502. Cell phone voice communication ban.
Sec. 503. Advisory committee for aviation consumer protection.
Sec. 504. Improved notification of insecticide use.
Sec. 505. Advertisements and disclosure of fees for passenger air 
transportation.
Sec. 506. Involuntarily bumping passengers after aircraft boarded.
Sec. 507. Availability of consumer rights information.
Sec. 508. Consumer complaints hotline.
Sec. 509. Widespread disruptions.
Sec. 510. Involuntarily denied boarding compensation.
Sec. 511. Consumer information on actual flight times.
Sec. 512. Advisory committee for transparency in air ambulance 
industry.
Sec. 513. Air ambulance complaints.
Sec. 514. Passenger rights.

            Subtitle B--Aviation Consumers With Disabilities

Sec. 541. Select subcommittee.
Sec. 542. Aviation consumers with disabilities study.
Sec. 543. Feasibility study on in-cabin wheelchair restraint systems.
Sec. 544. Access advisory committee recommendations.

                Subtitle C--Small Community Air Service

Sec. 551. Essential air service authorization.
Sec. 552. Extension of final order establishing mileage adjustment 
eligibility.
Sec. 553. Study on essential air service reform.
Sec. 554. Small community air service.
Sec. 555. Air transportation to noneligible places.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Review of FAA strategic cybersecurity plan.
Sec. 602. Consolidation and realignment of FAA services and facilities.
Sec. 603. FAA review and reform.
Sec. 604. Aviation fuel.
Sec. 605. Right to privacy when using air traffic control system.
Sec. 606. Air shows.
Sec. 607. Part 91 review, reform, and streamlining.
Sec. 608. Aircraft registration.
Sec. 609. Air transportation of lithium cells and batteries.
Sec. 610. Remote tower pilot program for rural and small communities.
Sec. 611. Ensuring FAA readiness to provide seamless oceanic 
operations.
Sec. 612. Sense of Congress regarding women in aviation.
Sec. 613. Obstruction evaluation aeronautical studies.
Sec. 614. Aircraft leasing.
Sec. 615. Report on obsolete test equipment.
Sec. 616. Retired military controllers.
Sec. 617. Pilots sharing flight expenses with passengers.
Sec. 618. Aviation rulemaking committee for part 135 pilot rest and 
duty rules.
Sec. 619. Metropolitan Washington Airports Authority.
Sec. 620. Terminal Aerodrome Forecast.
Sec. 621. Federal Aviation Administration employees stationed on Guam.
Sec. 622. Technical corrections.
Sec. 623. Application of veterans' preference to Federal Aviation 
Administration personnel management system.
Sec. 624. Public aircraft eligible for logging flight times.
Sec. 625. Federal Aviation Administration workforce review.
Sec. 626. State taxation.
Sec. 627. Aviation and aerospace workforce of the future.
Sec. 628. Future aviation and aerospace workforce study.
Sec. 629. FAA leadership on civil supersonic aircraft.
Sec. 630. Oklahoma registry office.
Sec. 631. Foreign air transportation under United States-European Union 
Air Transport Agreement.
Sec. 632. Training on human trafficking for certain staff.
Sec. 633. Part 107 implementation improvements.
Sec. 634. Part 107 transparency and technology improvements.
Sec. 635. Prohibitions against smoking on passenger flights.
Sec. 636. Consumer protection requirements relating to large ticket 
agents.
Sec. 637. Agency procurement reporting requirements.
Sec. 638. Zero-emission vehicles and technology.
Sec. 639. Employee Assault Prevention and Response Plans.
Sec. 640. Study on training of customer-facing air carrier employees.
Sec. 641. Minimum dimensions for passenger seats.
Sec. 642. Study of ground transportation options.

SEC. 2. 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(a) of title 49, United States Code, 
is amended by striking ``section 47504(c)'' and all that follows 
through the period at the end and inserting the following: ``section 
47504(c)--
          ``(1) $3,597,000,000 for fiscal year 2018;
          ``(2) $3,666,000,000 for fiscal year 2019;
          ``(3) $3,746,000,000 for fiscal year 2020;
          ``(4) $3,829,000,000 for fiscal year 2021;
          ``(5) $3,912,000,000 for fiscal year 2022; and
          ``(6) $3,998,000,000 for fiscal year 2023.''.
  (b) Obligation Authority.--Section 47104(c) of title 49, United 
States Code, is amended in the matter preceding paragraph (1) by 
striking ``September 30, 2017,'' and inserting ``September 30, 2023,''.

SEC. 102. FACILITIES AND EQUIPMENT.

  (a) Authorization of Appropriations From Airport and Airway Trust 
Fund.--Section 48101(a) of title 49, United States Code, is amended by 
striking paragraphs (1) through (5) and inserting the following:
          ``(1) $2,920,000,000 for fiscal year 2018.
          ``(2) $2,984,000,000 for fiscal year 2019.
          ``(3) $3,049,000,000 for fiscal year 2020.''.
  (b) Set Asides.--Section 48101(d) of title 49, United States Code, is 
amended by inserting ``, carried out using amounts appropriated under 
subsection (a),'' after ``air traffic control modernization project''.
  (c) Authorization of Appropriations From General Fund.--
          (1) In general.--Title 49, United States Code, is amended by 
        inserting after section 48101 the following:

``Sec. 48101a. Other facilities and equipment

  ``There is authorized to be appropriated to the Secretary of 
Transportation to acquire, establish, and improve facilities and 
equipment (other than facilities and equipment relating to air traffic 
services)--
          ``(1) $189,000,000 for fiscal year 2021;
          ``(2) $193,000,000 for fiscal year 2022; and
          ``(3) $198,000,000 for fiscal year 2023.''.
          (2) Clerical amendment.--The analysis for chapter 481 of 
        title 49, United States Code, is amended by inserting after the 
        item relating to section 48101 the following:

``48101a. Other facilities and equipment.''.

          (3) Conforming amendments.--
                  (A) Submission of budget information and legislative 
                recommendations and comments.--Section 48109 of title 
                49, United States Code, is amended by inserting ``, 
                48101a,'' before ``or 48102''.
                  (B) Reprogramming notification requirement.--Section 
                48113 of title 49, United States Code, is amended by 
                inserting ``48101a,'' before ``or 48103''.

SEC. 103. FAA OPERATIONS.

  (a) Authorization of Appropriations From General Fund.--Section 
106(k)(1) of title 49, United States Code, is amended--
          (1) in the paragraph heading by inserting ``from general 
        fund'' after ``maintenance''; and
          (2) by striking subparagraphs (A) through (E) and inserting 
        the following:
                  ``(A) $2,059,000,000 for fiscal year 2018;
                  ``(B) $2,126,000,000 for fiscal year 2019;
                  ``(C) $2,197,000,000 for fiscal year 2020;
                  ``(D) $1,957,000,000 for fiscal year 2021;
                  ``(E) $2,002,000,000 for fiscal year 2022; and
                  ``(F) $2,047,000,000 for fiscal year 2023.''.
  (b) Authorization of Appropriations From Airport and Airway Trust 
Fund.--Section 106(k)(2) of title 49, United States Code, is amended to 
read as follows:
          ``(2) Salaries, operations, and maintenance from airport and 
        airway trust fund.--There is authorized to be appropriated to 
        the Secretary out of the Airport and Airway Trust Fund 
        established under section 9502 of the Internal Revenue Code of 
        1986 for salaries, operations, and maintenance of the 
        Administration--
                  ``(A) $8,073,000,000 for fiscal year 2018;
                  ``(B) $8,223,000,000 for fiscal year 2019; and
                  ``(C) $8,374,000,000 for fiscal year 2020.''.
  (c) Authority To Transfer Funds.--Section 106(k)(3) of title 49, 
United States Code, is amended--
          (1) by striking ``fiscal years 2012 through 2017'' and 
        inserting ``fiscal years 2018 through 2020''; and
          (2) by striking ``paragraph (1)'' each place it appears and 
        inserting ``paragraphs (1) and (2)''.

SEC. 104. ADJUSTMENT TO AIP PROGRAM FUNDING.

  Section 48112 of title 49, United States Code, and the item relating 
to such section in the analysis for chapter 481 of such title, are 
repealed.

SEC. 105. FUNDING FOR AVIATION PROGRAMS.

  Section 48114(a)(1)(A)(ii) of title 49, United States Code, is 
amended by striking ``in fiscal year 2014 and each fiscal year 
thereafter'' and inserting ``in fiscal years 2014 through 2017''.

SEC. 106. APPLICABILITY.

  This subtitle, and the amendments made by this subtitle, shall apply 
only to fiscal years beginning after September 30, 2017.

                 Subtitle B--Passenger Facility Charges

SEC. 111. PASSENGER FACILITY CHARGE MODERNIZATION.

  Section 40117(b) of title 49, United States Code, is amended--
          (1) in paragraph (1) by striking ``or $3'' and inserting 
        ``$3, $4, or $4.50'';
          (2) by repealing paragraph (4);
          (3) in paragraph (6)--
                  (A) by striking ``specified in paragraphs (1) and 
                (4)'' and inserting ``specified in paragraph (1)''; and
                  (B) by striking ``imposed under paragraph (1) or 
                (4)'' and inserting ``imposed under paragraph (1)''; 
                and
          (4) in paragraph (7)(A)--
                  (A) by striking ``specified in paragraphs (1), (4), 
                and (6)'' and inserting ``specified in paragraphs (1) 
                and (6)''; and
                  (B) by striking ``imposed under paragraph (1) or 
                (4)'' and inserting ``imposed under paragraph (1)''.

SEC. 112. PILOT PROGRAM FOR PASSENGER FACILITY CHARGE AUTHORIZATIONS.

  Section 40117(l) of title 49, United States Code, is amended--
          (1) in the subsection heading by striking  ``at Nonhub 
        Airports''; and
          (2) in paragraph (1) by striking ``nonhub''.

         Subtitle C--Airport Improvement Program Modifications

SEC. 121. CLARIFICATION OF AIRPORT OBLIGATION TO PROVIDE FAA AIRPORT 
                    SPACE.

  Section 44502 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(f) Airport Space.--
          ``(1) In general.--Except as provided in paragraph (2), the 
        Administrator of the Federal Aviation Administration may not 
        require an airport owner, operator, or sponsor (as defined in 
        section 47102) to provide building construction, maintenance, 
        utilities, administrative support, or space on airport property 
        to the Federal Aviation Administration without adequate 
        compensation.
          ``(2) Exceptions.--Paragraph (1) does not apply in any case 
        in which an airport owner, operator, or sponsor--
                  ``(A) provides land or buildings without compensation 
                prior to the date of transfer (as defined in section 
                90101(a)) to the Federal Aviation Administration for 
                facilities used to carry out activities related to air 
                traffic control or navigation pursuant to a grant 
                assurance; or
                  ``(B) provides goods or services to the Federal 
                Aviation Administration without compensation or at 
                below-market rates pursuant to a negotiated agreement 
                between the owner, operator, or sponsor and the 
                Administrator.''.

SEC. 122. MOTHERS' ROOMS AT AIRPORTS.

  (a) Lactation Area Defined.--Section 47102 of title 49, United States 
Code, is amended by adding at the end the following:
          ``(29) `lactation area' means a room or other location in a 
        commercial service airport that--
                  ``(A) provides a location for members of the public 
                to express breast milk that is shielded from view and 
                free from intrusion from the public;
                  ``(B) has a door that can be locked;
                  ``(C) includes a place to sit, a table or other flat 
                surface, and an electrical outlet;
                  ``(D) is readily accessible to and usable by 
                individuals with disabilities, including individuals 
                who use wheelchairs; and
                  ``(E) is not located in a restroom.''.
  (b) Project Grant Written Assurances for Large and Medium Hub 
Airports.--
          (1) In general.--Section 47107(a) of title 49, United States 
        Code, is amended--
                  (A) in paragraph (20) by striking ``and'' at the end;
                  (B) in paragraph (21) by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(22) with respect to a medium or large hub airport, the 
        airport owner or operator will maintain a lactation area in 
        each passenger terminal building of the airport in the sterile 
        area (as defined in section 1540.5 of title 49, Code of Federal 
        Regulations) of the building.''.
          (2) Applicability.--
                  (A) In general.--The amendment made by paragraph (1) 
                shall apply to a project grant application submitted 
                for a fiscal year beginning on or after the date that 
                is 2 years after the date of enactment of this Act.
                  (B) Special rule.--The requirement in the amendment 
                made by paragraph (1) that a lactation area be located 
                in the sterile area of a passenger terminal building 
                shall not apply with respect to a project grant 
                application for a period of time, determined by the 
                Secretary of Transportation, if the Secretary 
                determines that construction or maintenance activities 
                make it impracticable or unsafe for the lactation area 
                to be located in the sterile area of the building.
  (c) Terminal Development Costs.--Section 47119(a) of title 49, United 
States Code, is amended by adding at the end the following:
          ``(3) Lactation areas.--In addition to the projects described 
        in paragraph (1), the Secretary may approve a project for 
        terminal development for the construction or installation of a 
        lactation area at a commercial service airport.''.
  (d) Pre-Existing Facilities.--On application by an airport sponsor, 
the Secretary may determine that a lactation area in existence on the 
date of enactment of this Act complies with the requirement of section 
47107(a)(22) of title 49, United States Code, as added by this section, 
notwithstanding the absence of one of the facilities or characteristics 
referred to in the definition of the term ``lactation area'' in section 
47102 of such title, as added by this section.

SEC. 123. EXTENSION OF COMPETITIVE ACCESS REPORTS.

  Section 47107(r)(3) of title 49, United States Code, is amended by 
striking ``October 1, 2017'' and inserting ``October 1, 2023''.

SEC. 124. GRANT ASSURANCES.

  (a) Construction of Recreational Aircraft.--Section 47107 is amended 
by adding at the end the following:
  ``(u) Construction of Recreational Aircraft.--
          ``(1) In general.--The construction of a covered aircraft 
        shall be treated as an aeronautical activity for purposes of--
                  ``(A) determining an airport's compliance with a 
                grant assurance made under this section or any other 
                provision of law; and
                  ``(B) the receipt of Federal financial assistance for 
                airport development.
          ``(2) Covered aircraft defined.--In this subsection, the term 
        `covered aircraft' means an aircraft--
                  ``(A) used or intended to be used exclusively for 
                recreational purposes; and
                  ``(B) constructed or under construction by a private 
                individual at a general aviation airport.''.
  (b) Community Use of Airport Land.--Section 47107 of title 49, United 
States Code, as amended by this section, is further amended by adding 
at the end the following:
  ``(v) Community Use of Airport Land.--
          ``(1) In general.--Notwithstanding subsection (a)(13), and 
        subject to paragraph (2), the sponsor of a public-use airport 
        shall not be considered to be in violation of this subtitle, or 
        to be found 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 has entered into an 
        agreement, including a revised agreement, with a local 
        government providing for the use of airport property for an 
        interim compatible recreational purpose at below fair market 
        value.
          ``(2) Restrictions.--This subsection shall apply only--
                  ``(A) to an agreement regarding airport property that 
                was initially entered into before the publication of 
                the Federal Aviation Administration's Policy and 
                Procedures Concerning the Use of Airport Revenue, dated 
                February 16, 1999;
                  ``(B) if the agreement between the sponsor and the 
                local government is subordinate to any existing or 
                future agreements between the sponsor and the 
                Secretary, including agreements related to a grant 
                assurance under this section;
                  ``(C) to airport property that was acquired under a 
                Federal airport development grant program;
                  ``(D) if the airport sponsor has provided a written 
                statement to the Administrator that the property made 
                available for a recreational purpose will not be needed 
                for any aeronautical purpose during the next 10 years;
                  ``(E) if the agreement includes a term of not more 
                than 2 years to prepare the airport property for the 
                interim compatible recreational purpose and not more 
                than 10 years of use for that purpose;
                  ``(F) if the recreational purpose will not impact the 
                aeronautical use of the airport;
                  ``(G) if the airport sponsor provides a certification 
                that the sponsor is not responsible for preparation, 
                start-up, operations, maintenance, or any other costs 
                associated with the recreational purpose; and
                  ``(H) if the recreational purpose is consistent with 
                Federal land use compatibility criteria under section 
                47502.
          ``(3) Statutory construction.--Nothing in this subsection may 
        be construed as permitting a diversion of airport revenue for 
        the capital or operating costs associated with the community 
        use of airport land.''.

SEC. 125. GOVERNMENT SHARE OF PROJECT COSTS.

  Section 47109(a) of title 49, United States Code, is amended--
          (1) in paragraph (1) by striking ``primary airport having at 
        least .25 percent of the total number of passenger boardings 
        each year at all commercial service airports;'' and inserting 
        ``medium or large hub airport;''; and
          (2) by striking paragraph (5) and inserting the following:
          ``(5) 95 percent for a project that--
                  ``(A) the Administrator determines is a successive 
                phase of a multi-phase construction project for which 
                the sponsor received a grant in fiscal year 2011; and
                  ``(B) for which the United States Government's share 
                of allowable project costs could otherwise be 90 
                percent under paragraph (2) or (3).''.

SEC. 126. UPDATED VETERANS' PREFERENCE.

  Section 47112(c)(1)(C) of title 49, United States Code, is amended--
          (1) by striking ``or Operation New Dawn for more'' and 
        inserting ``Operation New Dawn, Operation Inherent Resolve, 
        Operation Freedom's Sentinel, or any successor contingency 
        operation to such operations for more''; and
          (2) by striking ``or Operation New Dawn (whichever is 
        later)'' and inserting ``Operation New Dawn, Operation Inherent 
        Resolve, Operation Freedom's Sentinel, or any successor 
        contingency operation to such operations (whichever is 
        later)''.

SEC. 127. SPECIAL RULE.

  Section 47114(d)(3) of title 49, United States Code, is amended by 
adding at the end the following:
                  ``(C) During fiscal years 2018 through 2020--
                          ``(i) an airport that accrued apportionment 
                        funds under subparagraph (A) in fiscal year 
                        2013 that is listed as having an unclassified 
                        status under the most recent national plan of 
                        integrated airport systems shall continue to 
                        accrue apportionment funds under subparagraph 
                        (A) at the same amount the airport accrued 
                        apportionment funds in fiscal year 2013, 
                        subject to the conditions of this paragraph;
                          ``(ii) notwithstanding the period of 
                        availability as described in section 47117(b), 
                        an amount apportioned to an airport under 
                        clause (i) shall be available to the airport 
                        only during the fiscal year in which the amount 
                        is apportioned; and
                          ``(iii) notwithstanding the waiver permitted 
                        under section 47117(c)(2), an airport receiving 
                        apportionment funds under clause (i) may not 
                        waive its claim to any part of the apportioned 
                        funds in order to make the funds available for 
                        a grant for another public-use airport.
                  ``(D) An airport that re-establishes its classified 
                status shall be eligible to accrue apportionment funds 
                pursuant to subparagraph (A) so long as such airport 
                retains its classified status.''.

SEC. 128. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

  Section 47115 of title 49, United States Code, is amended--
          (1) by striking subsection (i);
          (2) by redesignating subsection (j) as subsection (i); and
          (3) in subsection (i) (as so redesignated) by striking 
        ``fiscal years 2012 through 2017'' and inserting ``fiscal years 
        2017 through 2023''.

SEC. 129. NONDISCRIMINATION.

  Section 47123 of title 49, United States Code, is amended--
          (1) by striking ``The Secretary of Transportation'' and 
        inserting the following:
  ``(a) In General.--The Secretary of Transportation''; and
          (2) by adding at the end the following:
  ``(b) Indian Employment.--
          ``(1) Tribal sponsor preference.--Consistent with section 
        703(i) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-2(i)), 
        nothing in this section shall preclude the preferential 
        employment of Indians living on or near a reservation on a 
        project or contract at--
                  ``(A) an airport sponsored by an Indian tribal 
                government; or
                  ``(B) an airport located on an Indian reservation.
          ``(2) State preference.--A State may implement a preference 
        for employment of Indians on a project carried out under this 
        subchapter near an Indian reservation.
          ``(3) Implementation.--The Secretary shall cooperate with 
        Indian tribal governments and the States to implement this 
        subsection.
          ``(4) Indian tribal government defined.--In this section, the 
        term `Indian tribal government' has the same meaning given that 
        term in section 102 of the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122).''.

SEC. 130. STATE BLOCK GRANT PROGRAM EXPANSION.

  Section 47128(a) of title 49, United States Code, is amended by 
striking ``not more than 9 qualified States for fiscal years 2000 and 
2001 and 10 qualified States for each fiscal year thereafter'' and 
inserting ``not more than 20 qualified States for each fiscal year''.

SEC. 131. MIDWAY ISLAND AIRPORT.

  Section 186(d) of the Vision 100--Century of Aviation Reauthorization 
Act (117 Stat. 2518) is amended in the first sentence by striking 
``fiscal years 2012 through 2017'' and inserting ``fiscal years 2017 
through 2023''.

SEC. 132. PROPERTY CONVEYANCE RELEASES.

  Section 817(a) of the FAA Modernization and Reform Act of 2012 (49 
U.S.C. 47125 note) is amended--
          (1) by striking ``or section 23'' and inserting ``, section 
        23''; and
          (2) by inserting ``, or section 47125 of title 49, United 
        States Code'' before the period at the end.

SEC. 133. MINORITY AND DISADVANTAGED BUSINESS PARTICIPATION.

  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.

SEC. 134. CONTRACT TOWER PROGRAM.

  (a) Air Traffic Control Contract Program.--
          (1) Special rule.--Section 47124(b)(1)(B) of title 49, United 
        States Code, is amended by striking ``exceeds the benefit for a 
        period of 18 months after such determination is made'' and 
        inserting the following: ``exceeds the benefit--
                          ``(i) for the 1-year period after such 
                        determination is made; or
                          ``(ii) if an appeal of such determination is 
                        requested, for the 1-year period described in 
                        subsection (d)(4)(D)''.
          (2) Funding of cost-share program.--Section 47124(b)(3)(E) of 
        title 49, United States Code, is amended to read as follows:
                  ``(E) Funding.--Amounts appropriated pursuant to 
                section 106(k)(1) may be used to carry out this 
                paragraph.''.
          (3) Construction of air traffic control towers.--
                  (A) Grants.--Section 47124(b)(4)(A) of title 49, 
                United States Code, is amended in each of clauses 
                (i)(III) and (ii)(III) by inserting ``, including 
                remote air traffic control tower equipment certified by 
                the Federal Aviation Administration'' after ``1996''.
                  (B) Eligibility.--Section 47124(b)(4)(B) of title 49, 
                United States Code, is amended to read as follows:
                  ``(B) Eligibility.--
                          ``(i) Before date of transfer.--Before the 
                        date of transfer (as defined in section 
                        90101(a)), an airport sponsor shall be eligible 
                        for a grant under this paragraph only if--
                                  ``(I)(aa) the sponsor is a 
                                participant in the Federal Aviation 
                                Administration contract tower program 
                                established under subsection (a) and 
                                continued under paragraph (1) or the 
                                pilot program established under 
                                paragraph (3); or
                                  ``(bb) construction of a nonapproach 
                                control tower would qualify the sponsor 
                                to be eligible to participate in such 
                                program;
                                  ``(II) the sponsor certifies that it 
                                will pay not less than 10 percent of 
                                the cost of the activities for which 
                                the sponsor is receiving assistance 
                                under this paragraph;
                                  ``(III) the Secretary affirmatively 
                                accepts the proposed contract tower 
                                into a contract tower program under 
                                this section and certifies that the 
                                Secretary will seek future 
                                appropriations to pay the Federal 
                                Aviation Administration's cost of the 
                                contract to operate the tower to be 
                                constructed under this paragraph;
                                  ``(IV) the sponsor certifies that it 
                                will pay its share of the cost of the 
                                contract to operate the tower to be 
                                constructed under this paragraph; and
                                  ``(V) in the case of a tower to be 
                                constructed under this paragraph from 
                                amounts made available under section 
                                47114(d)(2) or 47114(d)(3)(B), the 
                                Secretary certifies that--
                                          ``(aa) the Federal Aviation 
                                        Administration has consulted 
                                        the State within the borders of 
                                        which the tower is to be 
                                        constructed and the State 
                                        supports the construction of 
                                        the tower as part of its State 
                                        airport capital plan; and
                                          ``(bb) the selection of the 
                                        tower for funding is based on 
                                        objective criteria.
                          ``(ii) On and after date of transfer.--On and 
                        after the date of transfer (as defined in 
                        section 90101(a)), an airport sponsor shall be 
                        eligible for a grant under this paragraph only 
                        if--
                                  ``(I) the Secretary determines that 
                                the tower to be constructed at the 
                                sponsor's airport using the amounts of 
                                the grant will be operated pursuant to 
                                an agreement entered into by the 
                                American Air Navigation Services 
                                Corporation and an entity pursuant to 
                                section 90302(c)(3);
                                  ``(II) the sponsor certifies that it 
                                will pay not less than 10 percent of 
                                the cost of the activities for which 
                                the sponsor is receiving assistance 
                                under this paragraph; and
                                  ``(III) in the case of a tower to be 
                                constructed under this paragraph from 
                                amounts made available under section 
                                47114(d)(2) or 47114(d)(3)(B), the 
                                Secretary certifies that--
                                          ``(aa) the Federal Aviation 
                                        Administration has consulted 
                                        the State within the borders of 
                                        which the tower is to be 
                                        constructed and the State 
                                        supports the construction of 
                                        the tower as part of its State 
                                        airport capital plan; and
                                          ``(bb) the selection of the 
                                        tower for funding is based on 
                                        objective criteria.''.
                  (C) Limitation on federal share.--Section 47124(b)(4) 
                of title 49, United States Code, is amended by striking 
                subparagraph (C).
          (4) Benefit-to-cost calculation for program applicants.--
        Section 47124(b)(3) of title 49, United States Code, is amended 
        by adding at the end the following:
                  ``(G) Benefit-to-cost calculation.--Not later than 90 
                days after receiving an application to the Contract 
                Tower Program, the Secretary shall calculate a benefit-
                to-cost ratio (as described in subsection (d)) for the 
                applicable air traffic control tower for purposes of 
                selecting towers for participation in the Contract 
                Tower Program.''.
  (b) Safety Audits.--Section 47124(c) of title 49, United States Code, 
is amended--
          (1) by striking ``The Secretary'' and inserting the 
        following:
          ``(1) Before date of transfer.--Before the date of transfer 
        (as defined in section 90101(a)), the Secretary''; and
          (2) by adding at the end the following:
          ``(2) On and after date of transfer.--On and after the date 
        of transfer (as defined in section 90101(a)), oversight of air 
        traffic control towers that receive funding under this section 
        shall be carried out in accordance with performance-based 
        regulations and minimum safety standards prescribed under 
        section 90501.''.
  (c) Criteria To Evaluate Participants.--Section 47124 of title 49, 
United States Code, is amended by adding at the end the following:
  ``(d) Criteria To Evaluate Participants.--
          ``(1) Timing of evaluations.--
                  ``(A) Towers participating in cost-share program.--In 
                the case of an air traffic control tower that is 
                operated under the program established under subsection 
                (b)(3), the Secretary shall annually calculate a 
                benefit-to-cost ratio with respect to the tower.
                  ``(B) Towers participating in contract tower 
                program.--In the case of an air traffic control tower 
                that is operated under the program established under 
                subsection (a) and continued under subsection (b)(1), 
                the Secretary shall not calculate a benefit-to-cost 
                ratio after the date of enactment of this subsection 
                with respect to the tower unless the Secretary 
                determines that the annual aircraft traffic at the 
                airport where the tower is located has decreased--
                          ``(i) by more than 25 percent from the 
                        previous year; or
                          ``(ii) by more than 60 percent cumulatively 
                        in the preceding 3-year period.
          ``(2) Costs to be considered.--In establishing a benefit-to-
        cost ratio under this section with respect to an air traffic 
        control tower, the Secretary shall consider only the following 
        costs:
                  ``(A) The Federal Aviation Administration's actual 
                cost of wages and benefits of personnel working at the 
                tower.
                  ``(B) The Federal Aviation Administration's actual 
                telecommunications costs directly associated with the 
                tower.
                  ``(C) The Federal Aviation Administration's costs of 
                purchasing and installing any air traffic control 
                equipment that would not have been purchased or 
                installed except for the operation of the tower.
                  ``(D) The Federal Aviation Administration's actual 
                travel costs associated with maintaining air traffic 
                control equipment that is owned by the Administration 
                and would not be maintained except for the operation of 
                the tower.
          ``(3) Other criteria to be considered.--In establishing a 
        benefit-to-cost ratio under this section with respect to an air 
        traffic control tower, the Secretary shall add a 10 percentage 
        point margin of error to the benefit-to-cost ratio 
        determination to acknowledge and account for the direct and 
        indirect economic and other benefits that are not included in 
        the criteria the Secretary used in calculating that ratio.
          ``(4) Review of cost-benefit determinations.--In issuing a 
        benefit-to-cost ratio determination under this section with 
        respect to an air traffic control tower located at an airport, 
        the Secretary shall implement the following procedures:
                  ``(A) The Secretary shall provide the airport (or the 
                State or local government having jurisdiction over the 
                airport) at least 90 days following the date of receipt 
                of the determination to submit to the Secretary a 
                request for an appeal of the determination, together 
                with updated or additional data in support of the 
                appeal.
                  ``(B) Upon receipt of a request for an appeal 
                submitted pursuant to subparagraph (A), the Secretary 
                shall--
                          ``(i) transmit to the Administrator of the 
                        Federal Aviation Administration any updated or 
                        additional data submitted in support of the 
                        appeal; and
                          ``(ii) provide the Administrator not more 
                        than 90 days to review the data and provide a 
                        response to the Secretary based on the review.
                  ``(C) After receiving a response from the 
                Administrator pursuant to subparagraph (B), the 
                Secretary shall--
                          ``(i) provide the airport, State, or local 
                        government that requested the appeal at least 
                        30 days to review the response; and
                          ``(ii) withhold from taking further action in 
                        connection with the appeal during that 30-day 
                        period.
                  ``(D) If, after completion of the appeal procedures 
                with respect to the determination, the Secretary 
                requires the tower to transition into the program 
                established under subsection (b)(3), the Secretary 
                shall not require a cost-share payment from the 
                airport, State, or local government for 1 year 
                following the last day of the 30-day period described 
                in subparagraph (C).''.

SEC. 135. AIRPORT ACCESS ROADS IN REMOTE LOCATIONS.

  Notwithstanding section 47102 of title 49, United States Code, for 
fiscal years 2017 through 2020, the definition of the term ``terminal 
development'' under that section includes the development of an airport 
access road that--
          (1) is located in a noncontiguous State;
          (2) is not more than 3 miles in length;
          (3) connects to the nearest public roadways of not more than 
        the 2 closest census designated places; and
          (4) is constructed for the purpose of connecting the census 
        designated places with a planned or newly constructed airport.

SEC. 136. BUY AMERICA REQUIREMENTS.

  (a) Notice of Waivers.--If the Secretary of Transportation determines 
that it is necessary to waive the application of section 50101(a) of 
title 49, United States Code, based on a finding under section 50101(b) 
of that title, the Secretary, at least 10 days before the date on which 
the waiver takes effect, shall--
          (1) make publicly available, in an easily identifiable 
        location on the website of the Department of Transportation, a 
        detailed written justification of the waiver determination; and
          (2) provide an informal public notice and comment opportunity 
        on the waiver determination.
  (b) Annual Report.--For each fiscal year, 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 waivers issued under section 
50101 of title 49, United States Code, during the fiscal year.

        Subtitle D--Airport Noise and Environmental Streamlining

SEC. 151. RECYCLING PLANS FOR AIRPORTS.

  Section 47106(a)(6) of title 49, United States Code, is amended by 
inserting ``that includes the project'' before ``, the master plan''.

SEC. 152. PILOT PROGRAM SUNSET.

  (a) In General.--Section 47140 of title 49, United States Code, is 
repealed.
  (b) Conforming Amendment.--Section 47140a of title 49, United States 
Code, is redesignated as section 47140.
  (c) Clerical Amendments.--The analysis for chapter 471 of title 49, 
United States Code, is amended--
          (1) by striking the items relating to sections 47140 and 
        47140a; and
          (2) by inserting after the item relating to section 47139 the 
        following:

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

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

  Section 47141(f) of title 49, United States Code, is amended by 
striking ``September 30, 2017'' and inserting ``September 30, 2023''.

SEC. 154. UPDATING AIRPORT NOISE EXPOSURE MAPS.

  Section 47503(b) of title 49, United States Code, is amended to read 
as follows:
  ``(b) Revised Maps.--
          ``(1) In general.--An airport operator that submitted a noise 
        exposure map under subsection (a) shall submit a revised map to 
        the Secretary if, in an area surrounding an airport, a change 
        in the operation of the airport would establish a substantial 
        new noncompatible use, or would significantly reduce noise over 
        existing noncompatible uses, that is not reflected in either 
        the existing conditions map or forecast map currently on file 
        with the Federal Aviation Administration.
          ``(2) Timing.--A submission under paragraph (1) shall be 
        required only if the relevant change in the operation of the 
        airport occurs during--
                  ``(A) the forecast period of the applicable noise 
                exposure map submitted by an airport operator under 
                subsection (a); or
                  ``(B) the implementation period of the airport 
                operator's noise compatibility program.''.

SEC. 155. STAGE 3 AIRCRAFT STUDY.

  (a) Study.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General of the United States shall initiate a 
review of the potential benefits, costs, and other impacts that would 
result from a phaseout of covered stage 3 aircraft.
  (b) Contents.--The review shall include--
          (1) a determination of the number, types, frequency of 
        operations, and owners and operators of covered stage 3 
        aircraft;
          (2) an analysis of the potential benefits, costs, and other 
        impacts to air carriers, general aviation operators, airports, 
        communities surrounding airports, and the general public 
        associated with phasing out or reducing the operations of 
        covered stage 3 aircraft, assuming such a phaseout or reduction 
        is put into effect over a reasonable period of time;
          (3) a determination of lessons learned from the phaseout of 
        stage 2 aircraft that might be applicable to a phaseout or 
        reduction in the operations of covered stage 3 aircraft, 
        including comparisons between the benefits, costs, and other 
        impacts associated with the phaseout of stage 2 aircraft and 
        the potential benefits, costs, and other impacts determined 
        under paragraph (2);
          (4) a determination of the costs and logistical challenges 
        associated with recertifying stage 3 aircraft capable of 
        meeting stage 4 noise levels; and
          (5) a determination of stakeholder views on the feasibility 
        and desirability of phasing out covered stage 3 aircraft, 
        including the views of--
                  (A) air carriers;
                  (B) airports;
                  (C) communities surrounding airports;
                  (D) aircraft and avionics manufacturers;
                  (E) operators of covered stage 3 aircraft other than 
                air carriers; and
                  (F) such other stakeholders and aviation experts as 
                the Comptroller General considers appropriate.
  (c) Report.--Not later than 18 months 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 review.
  (d) Covered Stage 3 Aircraft Defined.--In this section, the term 
``covered stage 3 aircraft'' means an aircraft weighing more than 
75,000 pounds that is not capable of meeting the stage 4 noise levels 
in part 36 of title 14, Code of Federal Regulations.

SEC. 156. ADDRESSING COMMUNITY NOISE CONCERNS.

  When proposing a new area navigation departure procedure, or amending 
an existing procedure that would direct aircraft between the surface 
and 6,000 feet above ground level over noise sensitive areas, the 
Administrator of the Federal Aviation Administration shall consider the 
feasibility of dispersal headings or other lateral track variations to 
address community noise concerns, if--
          (1) the affected airport operator, in consultation with the 
        affected community, submits a request to the Administrator for 
        such a consideration;
          (2) the airport operator's request would not, in the judgment 
        of the Administrator, conflict with the safe and efficient 
        operation of the national airspace system; and
          (3) the effect of a modified departure procedure would not 
        significantly increase noise over noise sensitive areas, as 
        determined by the Administrator.

SEC. 157. STUDY ON POTENTIAL HEALTH IMPACTS OF OVERFLIGHT NOISE.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall enter into an agreement with an eligible institution of higher 
education to conduct a study on the health impacts of noise from 
aircraft flights on residents exposed to a range of noise levels from 
such flights.
  (b) Scope of Study.--The study shall--
          (1) include an examination of the incremental health impacts 
        attributable to noise exposure that result from aircraft 
        flights, including sleep disturbance and elevated blood 
        pressure;
          (2) be focused on residents in the metropolitan area of--
                  (A) Boston;
                  (B) Chicago;
                  (C) the District of Columbia;
                  (D) New York;
                  (E) the Northern California Metroplex;
                  (F) Phoenix;
                  (G) the Southern California Metroplex; or
                  (H) such other area as may be identified by the 
                Administrator;
          (3) consider, in particular, the incremental health impacts 
        on residents living partly or wholly underneath flight paths 
        most frequently used by aircraft flying at an altitude lower 
        than 10,000 feet, including during takeoff or landing; and
          (4) include an assessment of the relationship between a 
        perceived increase in aircraft noise, including as a result of 
        a change in flight paths that increases the visibility of 
        aircraft from a certain location, and an actual increase in 
        aircraft noise, particularly in areas with high or variable 
        levels of nonaircraft-related ambient noise.
  (c) Eligibility.--An institution of higher education is eligible to 
conduct the study if the institution--
          (1) has--
                  (A) a school of public health that has participated 
                in the Center of Excellence for Aircraft Noise and 
                Aviation Emissions Mitigation of the Federal Aviation 
                Administration; or
                  (B) a center for environmental health that receives 
                funding from the National Institute of Environmental 
                Health Sciences;
          (2) is located in one of the areas identified in subsection 
        (b);
          (3) applies to the Administrator in a timely fashion;
          (4) demonstrates to the satisfaction of the Administrator 
        that the institution is qualified to conduct the study;
          (5) agrees to submit to the Administrator, not later than 3 
        years after entering into an agreement under subsection (a), 
        the results of the study, including any source materials used; 
        and
          (6) meets such other requirements as the Administrator 
        determines necessary.
  (d) Report.--Not later than 90 days after the Administrator receives 
the results of the study, 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.

SEC. 158. ENVIRONMENTAL MITIGATION PILOT PROGRAM.

  (a) In General.--The Secretary of Transportation shall carry out a 
pilot program involving not more than 6 projects at public-use airports 
in accordance with this section.
  (b) Grants.--In carrying out the program, the Secretary may make 
grants to sponsors of public-use airports from funds apportioned under 
section 47117(e)(1)(A) of title 49, United States Code.
  (c) Use of Funds.--Amounts from a grant received by the sponsor of a 
public-use airport under the program shall be used for environmental 
mitigation projects that will measurably reduce or mitigate aviation 
impacts on noise, air quality, or water quality at the airport or 
within 5 miles of the airport.
  (d) Eligibility.--Notwithstanding any other provision of chapter 471 
of title 49, United States Code, an environmental mitigation project 
approved under this section shall be treated as eligible for assistance 
under that chapter.
  (e) Selection Criteria.--In selecting from among applicants for 
participation in the program, the Secretary may give priority 
consideration to projects that--
          (1) will achieve the greatest reductions in aircraft noise, 
        airport emissions, or airport water quality impacts either on 
        an absolute basis or on a per dollar of funds expended basis; 
        and
          (2) will be implemented by an eligible consortium.
  (f) Federal Share.--The Federal share of the cost of a project 
carried out under the program shall be 50 percent.
  (g) Maximum Amount.--Not more than $2,500,000 may be made available 
by the Secretary in grants under the program for any single project.
  (h) Identifying Best Practices.--The Secretary may establish and 
publish information identifying best practices for reducing or 
mitigating aviation impacts on noise, air quality, and water quality at 
airports or in the vicinity of airports based on the projects carried 
out under the program.
  (i) Sunset.--The program shall terminate 5 years after the Secretary 
makes the first grant under the program.
  (j) Definitions.--In this section, the following definitions apply:
          (1) Eligible consortium.--The term ``eligible consortium'' 
        means a consortium that is comprised of 2 or more of the 
        following entities:
                  (A) Businesses incorporated in the United States.
                  (B) Public or private educational or research 
                organizations located in the United States.
                  (C) Entities of State or local governments in the 
                United States.
                  (D) Federal laboratories.
          (2) Environmental mitigation project.--The term 
        ``environmental mitigation project'' means a project that--
                  (A) introduces new environmental mitigation 
                techniques or technologies that have been proven in 
                laboratory demonstrations;
                  (B) proposes methods for efficient adaptation or 
                integration of new concepts into airport operations; 
                and
                  (C) will demonstrate whether new techniques or 
                technologies for environmental mitigation are--
                          (i) practical to implement at or near 
                        multiple public-use airports; and
                          (ii) capable of reducing noise, airport 
                        emissions, or water quality impacts in 
                        measurably significant amounts.

SEC. 159. AIRCRAFT NOISE EXPOSURE.

  (a) Review.--The Administrator of the Federal Aviation Administration 
shall conduct a review of the relationship between aircraft noise 
exposure and its effects on communities around airports.
  (b) Report.--
          (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress a report containing the results of the review.
          (2) Preliminary recommendations.--The report shall contain 
        such preliminary recommendations as the Administrator 
        determines appropriate for revising the land use compatibility 
        guidelines in part 150 of title 14, Code of Federal 
        Regulations, based on the results of the review and in 
        coordination with other agencies.

SEC. 160. COMMUNITY INVOLVEMENT IN FAA NEXTGEN PROJECTS LOCATED IN 
                    METROPLEXES.

  (a) Community Involvement Policy.--Not later than 180 days after the 
date of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall complete a review of the Federal Aviation 
Administration's community involvement practices for Next Generation 
Air Transportation System (NextGen) projects located in metroplexes 
identified by the Administration. The review shall include, at a 
minimum, a determination of how and when to engage airports and 
communities in performance-based navigation proposals.
  (b) Report.--Not later than 60 days after completion of the review, 
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--
          (1) how the Administration will improve community involvement 
        practices for NextGen projects located in metroplexes;
          (2) how and when the Administration will engage airports and 
        communities in performance-based navigation proposals; and
          (3) lessons learned from NextGen projects and pilot programs 
        and how those lessons learned are being integrated into 
        community involvement practices for future NextGen projects 
        located in metroplexes.

SEC. 161. CRITICAL HABITAT ON OR NEAR AIRPORT PROPERTY.

  (a) Federal Agency Requirements.--The Secretary of Transportation, to 
the maximum extent practicable, shall work with the heads of 
appropriate Federal agencies to ensure that designations of critical 
habitat, as that term is defined in section 3 of the Endangered Species 
Act of 1973 (16 U.S.C. 1532), on or near airport property do not--
          (1) result in conflicting statutory, regulatory, or Federal 
        grant assurance requirements for airports or aircraft 
        operators;
          (2) interfere with the safe operation of aircraft; or
          (3) occur on airport-owned lands that have become attractive 
        habitat for a threatened or endangered species because such 
        lands--
                  (A) have been prepared for future development;
                  (B) have been designated as noise buffer land; or
                  (C) are held by the airport to prevent encroachment 
                of uses that are incompatible with airport operations.
  (b) State Requirements.--In a State where a State agency is 
authorized to designate land on or near airport property for the 
conservation of a threatened or endangered species in the State, the 
Secretary, to the maximum extent practicable, shall work with the State 
in the same manner as the Secretary works with the heads of Federal 
agencies under subsection (a).

SEC. 162. CLARIFICATION OF REIMBURSABLE ALLOWED COSTS OF FAA MEMORANDA 
                    OF AGREEMENT.

  Section 47504(c)(2) of title 49, United States Code, is amended--
          (1) in subparagraph (D) by striking ``and'' at the end;
          (2) in subparagraph (E) by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(F) to an airport operator of a congested airport (as 
        defined in section 47175) and a unit of local government 
        referred to in paragraph (1)(B) to carry out a project to 
        mitigate noise, if the project--
                  ``(i) consists of--
                          ``(I) replacement windows, doors, and the 
                        installation of through-the-wall air-
                        conditioning units; or
                          ``(II) a contribution of the equivalent costs 
                        to be used for reconstruction, if 
                        reconstruction is the preferred local solution;
                  ``(ii) is located at a school near the airport; and
                  ``(iii) is included in a memorandum of agreement 
                entered into before September 30, 2002, even if the 
                airport has not met the requirements of part 150 of 
                title 14, Code of Federal Regulations, and only if the 
                financial limitations of the memorandum are applied.''.

         TITLE II--AMERICAN AIR NAVIGATION SERVICES CORPORATION

SEC. 201. PURPOSES.

  It is declared to be the purpose of Congress in this title to 
transfer operation of air traffic services currently provided by the 
Federal Aviation Administration to a separate not-for-profit corporate 
entity to provide for the more efficient operation and improvement of 
air traffic services.

       Subtitle A--Establishment of Air Traffic Services Provider

SEC. 211. AMERICAN AIR NAVIGATION SERVICES CORPORATION.

  (a) In General.--Title 49, United States Code, is amended by adding 
at the end the following:

      ``Subtitle XI--American Air Navigation Services Corporation

``Chapter                                                          Sec.
``901. General Provisions...................................      90101
``903. Establishment of Air Traffic Services Provider;            90301
                            Transfer of Air Traffic 
                            Services.
``905. Regulation of Air Traffic Services Provider..........      90501
``907. General Rights of Access to Airspace, Airports, and        90701
                            Air Traffic Services Vital for 
                            Ensuring Safe Operations for All 
                            Users.
``909. Continuity of Air Traffic Services to Department of        90901
                            Defense and Other Public 
                            Agencies.
``911. Employee Management..................................      91101
``913. Other Matters........................................      91301
``915. Congressional Oversight of Air Traffic Services            91501
                            Provider.

                   ``CHAPTER 901--GENERAL PROVISIONS

``Sec.
``90101. Definitions.

``Sec. 90101. Definitions

  ``(a) In General.--In this subtitle, the following definitions apply:
          ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the FAA.
          ``(2) Air traffic services.--The term `air traffic services' 
        means services--
                  ``(A) used for the monitoring, directing, control, 
                and guidance of aircraft or flows of aircraft and for 
                the safe conduct of flight, including communications, 
                navigation, and surveillance services and provision of 
                aeronautical information; and
                  ``(B) provided directly, or contracted for, by the 
                FAA before the date of transfer.
          ``(3) Air traffic services user.--The term `air traffic 
        services user' means any individual or entity using air traffic 
        services provided by the Corporation within United States 
        airspace or international airspace delegated to the United 
        States.
          ``(4) Board.--The term `Board' means the Board of Directors 
        of the Corporation.
          ``(5) CEO.--The term `CEO' means the Chief Executive Officer 
        of the Corporation.
          ``(6) Charge; fee.--The terms `charge' and `fee' mean any 
        rate, charge, fee, or other service charge for the use of air 
        traffic services.
          ``(7) Corporation.--The term `Corporation' means the American 
        Air Navigation Services Corporation established under this 
        subtitle.
          ``(8) Date of transfer.--The term `date of transfer' means 
        the date on which the Corporation assumes operational control 
        of air traffic services from the FAA pursuant to this subtitle, 
        which shall be October 1, 2020.
          ``(9) Director.--The term `Director' means a Director of the 
        Board.
          ``(10) FAA.--The term `FAA' means the Federal Aviation 
        Administration.
          ``(11) Interim ceo.--The term `Interim CEO' means the Interim 
        Chief Executive Officer of the Corporation.
          ``(12) Regional air carrier.--The term `regional air carrier' 
        means an air carrier operating under part 121 of title 14, Code 
        of Federal Regulations, that--
                  ``(A) exclusively or primarily operates aircraft with 
                a seating capacity of 76 seats or fewer; and
                  ``(B) is not majority owned or controlled by any 
                other air carrier or air carrier holding company.
          ``(13) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
  ``(b) Applicability of Other Definitions.--Except with respect to the 
terms specifically defined in this subtitle, the definitions contained 
in section 40102(a) shall apply to the terms used in this subtitle.

``CHAPTER 903--ESTABLISHMENT OF AIR TRAFFIC SERVICES PROVIDER; TRANSFER 
                        OF AIR TRAFFIC SERVICES

``Sec.
``90301. Establishment of Corporation.
``90302. Transfer of air traffic services.
``90303. Role of Secretary in transferring air traffic services to 
Corporation.
``90304. Status and applicable laws.
``90305. Nomination Panels for Board.
``90306. Board of Directors.
``90307. Fiduciary duties and qualifications of Directors.
``90308. Bylaws and duties.
``90309. Committees of Board; independent auditors.
``90310. Advisory Board.
``90311. Officers and their responsibilities.
``90312. Authority of Corporation.
``90313. Charges and fees for air traffic services.
``90314. Preemption of authority over air traffic services.
``90315. Actions by and against Corporation.
``90316. Transfer of Federal personnel to Corporation.
``90317. Transfer of facilities to Corporation.
``90318. Approval of transferred air navigation facilities and other 
equipment.
``90319. Use of spectrum systems and data.
``90320. Transition plan.

``Sec. 90301. Establishment of Corporation

  ``(a) Federal Charter.--There is established a federally chartered, 
not-for-profit corporation to be known as the `American Air Navigation 
Services Corporation', which shall be incorporated in a State of its 
choosing.
  ``(b) Corporation Name.--
          ``(1) In general.--The Corporation may conduct its business 
        and affairs, and otherwise hold itself out, as the `American 
        Air Navigation Services Corporation' in any jurisdiction.
          ``(2) Exclusive right.--The Corporation shall have the 
        exclusive right to use the name `American Air Navigation 
        Services Corporation'.
          ``(3) Alternative name.--The Corporation may do business 
        under a name other than the `American Air Navigation Services 
        Corporation' at its choosing.

``Sec. 90302. Transfer of air traffic services

  ``(a) In General.--The Secretary shall transfer operational control 
over air traffic services within United States airspace and 
international airspace delegated to the United States to the 
Corporation on the date of transfer in a systematic and orderly manner 
that ensures continuity of safe air traffic services.
  ``(b) Management and Operation of Air Traffic Services.--Subject to 
section 90501, including the performance-based regulations and minimum 
safety standards prescribed under that section, the Corporation may 
establish and carry out plans for the management and operation of air 
traffic services within United States airspace and international 
airspace delegated to the United States.
  ``(c) Entities Authorized To Provide Air Traffic Services After Date 
of Transfer.--After the date of transfer, no entity, other than the 
Corporation, is authorized or permitted to provide air traffic services 
within United States airspace or international airspace delegated to 
the United States, except for--
          ``(1) the Department of Defense, as authorized by chapter 
        909;
          ``(2) entities to which the United States has delegated 
        certain air traffic services responsibilities;
          ``(3) entities with which the Corporation has contracted for 
        the provision of air traffic services; and
          ``(4) entities authorized to operate an unmanned aircraft 
        traffic management system or service pursuant to section 45506 
        or 45507.

``Sec. 90303. Role of Secretary in transferring air traffic services to 
                    Corporation

  ``(a) In General.--As appropriate, and except as otherwise provided, 
the Secretary shall manage and execute the transfer of operational 
control over air traffic services pursuant to section 90302(a) and any 
related transition processes and procedures.
  ``(b) Nondelegation.--Except as otherwise provided, the Secretary may 
not delegate any of the authority or requirements under this subtitle 
to the Administrator.

``Sec. 90304. Status and applicable laws

  ``(a) Non-Federal Entity.--The Corporation is not a department, 
agency, or instrumentality of the United States Government, and is not 
subject to title 31.
  ``(b) Liability.--The United States Government shall not be liable 
for the actions or inactions of the Corporation.
  ``(c) Not-For-Profit Corporation.--The Corporation shall maintain its 
status as a not-for-profit corporation exempt from taxation under the 
Internal Revenue Code of 1986.
  ``(d) No Federal Guarantee.--Any debt assumed by the Corporation 
shall not have an implied or explicit Federal guarantee.

``Sec. 90305. Nomination Panels for Board

  ``(a) In General.--The Nomination Panels described in subsection (b) 
shall be responsible for nominating individuals to serve as Directors 
pursuant to section 90306.
  ``(b) Nomination Panels.--The Nomination Panels shall be as follows:
          ``(1) Passenger air carrier nomination panel.--A Passenger 
        Air Carrier Nomination Panel composed of passenger air carrier 
        representatives, with each air carrier with more than 
        30,000,000 annual passenger enplanements designating 1 
        representative to the Panel.
          ``(2) Cargo air carrier nomination panel.--A Cargo Air 
        Carrier Nomination Panel composed of cargo air carrier 
        representatives, with each all-cargo air carrier with more than 
        1,000,000 total annual enplaned cargo revenue tons designating 
        1 representative to the Panel.
          ``(3) Regional air carrier nomination panel.--A Regional Air 
        Carrier Nomination Panel composed of regional air carrier 
        representatives, with each of the 3 largest regional air 
        carriers, as measured by annual passenger enplanements, 
        designating 1 representative to the Panel.
          ``(4) General aviation nomination panel.--A General Aviation 
        Nomination Panel composed of 6 representatives designated by 
        the principal organization representing noncommercial owners 
        and recreational operators of general aviation aircraft.
          ``(5) Business aviation nomination panel.--A Business 
        Aviation Nomination Panel composed of--
                  ``(A) 2 representatives designated by the principal 
                organization representing owners, operators, and users 
                of general aviation aircraft used exclusively in 
                furtherance of business enterprises;
                  ``(B) 2 representatives designated by the principal 
                organization representing aviation-related businesses, 
                including fixed-base operators; and
                  ``(C) 2 representatives designated by the principal 
                organization representing aerospace manufacturers of 
                general aviation aircraft and equipment.
          ``(6) Air traffic controller nomination panel.--An Air 
        Traffic Controller Nomination Panel composed of 6 
        representatives designated by the largest organization engaged 
        in collective bargaining on behalf of air traffic controllers 
        employed by the Corporation.
          ``(7) Airport nomination panel.--An Airport Nomination Panel 
        composed of--
                  ``(A) 3 representatives designated by the principal 
                organization representing commercial service airports; 
                and
                  ``(B) 3 representatives designated by the principal 
                organization representing airport executives.
          ``(8)  Commercial pilot nomination panel.--A Commercial Pilot 
        Nomination Panel composed of commercial pilot representatives, 
        with each organization engaged in collective bargaining on 
        behalf of air carrier pilots with more than 5,000 members 
        designating 1 member to the Panel.
  ``(c) Determination of Entities.--
          ``(1) Before date of transfer.--Before the date of transfer, 
        and not later than 30 days after the date of enactment of this 
        subtitle, the Secretary shall determine the entities referred 
        to in subsection (b).
          ``(2) After date of transfer.--On and after the date of 
        transfer, the Board shall determine the entities referred to in 
        subsection (b), in accordance with the bylaws of the 
        Corporation.
          ``(3) Statistics.--In determining annual statistics for 
        purposes of this subsection, the Secretary and the Board shall 
        utilize data published by the Department of Transportation for 
        the most recent calendar year.
          ``(4) Limitations.--
                  ``(A) Single designation.--No entity determined under 
                this subsection may designate a representative to more 
                than 1 Nomination Panel.
                  ``(B) Carriers owned or controlled by same holding 
                company.--If 2 or more air carriers determined under 
                this subsection are owned or controlled by the same 
                holding company, only 1 of those air carriers may 
                designate a representative to a Nomination Panel.
  ``(d) Terms.--An individual on a Nomination Panel shall serve at the 
pleasure of the entity that the individual is representing.
  ``(e) Qualifications.--Only an individual who is a citizen of the 
United States may be designated to a Nomination Panel.
  ``(f) Prohibitions.--An individual may not serve on a Nomination 
Panel if the individual is--
          ``(1) an officer or employee of the Corporation;
          ``(2) a Member of Congress or an elected official serving in 
        a State, local, or Tribal government; or
          ``(3) an officer or employee of the Federal Government or any 
        State, local, or Tribal government.
  ``(g) Largest Organization Engaged in Collective Bargaining on Behalf 
of Air Traffic Controllers Employed by the Corporation Defined.--Before 
the date of transfer, in this section, the term `largest organization 
engaged in collective bargaining on behalf of air traffic controllers 
employed by the Corporation' means the largest organization engaged in 
collective bargaining on behalf of air traffic controllers employed by 
the FAA.

``Sec. 90306. Board of Directors

  ``(a) Authority.--The powers of the Corporation shall be vested in a 
Board of Directors that governs the Corporation.
  ``(b) Composition of Board.--The Board shall be composed of the 
following Directors:
          ``(1) The CEO.
          ``(2) 2 Directors appointed by the Secretary.
          ``(3) 1 Director nominated by the Passenger Air Carrier 
        Nomination Panel.
          ``(4) 1 Director nominated by the Cargo Air Carrier 
        Nomination Panel.
          ``(5) 1 Director nominated by the Regional Air Carrier 
        Nomination Panel.
          ``(6) 1 Director nominated by the General Aviation Nomination 
        Panel.
          ``(7) 1 Director nominated by the Business Aviation 
        Nomination Panel.
          ``(8) 1 Director nominated by the Air Traffic Controller 
        Nomination Panel.
          ``(9) 1 Director nominated by the Airport Nomination Panel.
          ``(10) 1 Director nominated by the Commercial Pilot 
        Nomination Panel.
          ``(11) 2 Directors nominated and selected by the other 
        Directors.
  ``(c) Nominations and Appointments.--
          ``(1) Prior to date of transfer.--
                  ``(A) Submission of nomination lists.--Before the 
                date of transfer, and not later than 60 days after the 
                date of enactment of this subtitle, each Nomination 
                Panel shall submit to the Secretary a list, chosen by 
                consensus, of 4 individuals nominated to be Directors.
                  ``(B) Appointment and selection.--Not later than 30 
                days after the date on which the last nomination list 
                is submitted under subparagraph (A), the Secretary 
                shall--
                          ``(i) appoint 2 individuals to be Directors 
                        under subsection (b)(2); and
                          ``(ii) select, pursuant to subsection (b), 
                        the appropriate number of individuals to be 
                        Directors from each nomination list.
                  ``(C) Resubmission.--A Nomination Panel shall 
                resubmit a list submitted under subparagraph (A), not 
                later than 15 days after notification by the Secretary 
                of the need to resubmit the list, if the Secretary 
                determines that an individual on the list is--
                          ``(i) not qualified to serve as a Director 
                        under section 90307; or
                          ``(ii) otherwise not fit to serve as a 
                        Director.
                  ``(D) At-large directors.--Not later than 30 days 
                after the Secretary appoints and selects the Directors 
                pursuant to subparagraph (B), the Board shall nominate 
                and select the additional Directors under subsection 
                (b)(11) by a two-thirds vote.
          ``(2) After date of transfer.--
                  ``(A) Nomination.--As appropriate, a Nomination Panel 
                shall submit to the Board a list, chosen by consensus, 
                of 4 individuals nominated to be Directors.
                  ``(B) Selection.--The Board shall select, pursuant to 
                subsection (b), the appropriate number of individuals 
                to be Directors from a list submitted by a Nomination 
                Panel.
                  ``(C) Resubmission.--A Nomination Panel shall 
                resubmit a list submitted under subparagraph (A), not 
                later than 15 days after notification by the Board of 
                the need to resubmit the list, if the Board determines 
                that more than 1 individual on the list is--
                          ``(i) not qualified to serve as a Director 
                        under section 90307; or
                          ``(ii) otherwise not fit to serve as a 
                        Director.
                  ``(D) At-large directors.--The Board shall nominate 
                and select Directors under subsection (b)(11) in 
                accordance with the bylaws of the Corporation.
                  ``(E) Appointed directors.--None of the Directors 
                appointed by the Secretary under subsection (b)(2) 
                shall be subject to approval by the Board.
  ``(d) Chairperson.--The Chairperson of the Board shall--
          ``(1) be selected from among the Directors (other than the 
        CEO) by a majority vote of the Directors; and
          ``(2) subject to subsection (e), serve until replaced by a 
        majority vote of the Directors.
  ``(e) Terms.--
          ``(1) Initial terms.--The term of each Director appointed, or 
        nominated and selected, before the date of transfer (other than 
        the CEO) shall expire on the date that is 2 years after the 
        date of transfer.
          ``(2) Subsequent terms.--The term of each Director appointed, 
        or nominated and selected, on or after the date of transfer 
        (other than the CEO) shall be 4 years, except as provided by 
        paragraph (3).
          ``(3) Staggering.--The Board shall stagger the duration of 
        the terms of the initial Directors appointed, or nominated and 
        selected, after the date of transfer to promote the stability 
        of the Board.
          ``(4) Term limit.--Except as provided by subsection (f)(3), a 
        Director may not serve on the Board for more than 8 years.
  ``(f) Vacancies.--
          ``(1) Before date of transfer.--Before the date of transfer, 
        a vacancy on the Board shall be filled in the manner in which 
        the original appointment or selection was made.
          ``(2) After date of transfer.--After the date of transfer, a 
        vacancy on the Board shall be filled in the manner in which the 
        original appointment was made (in the case of Directors 
        appointed under subsection (b)(2)) or in the manner described 
        under subsection (c)(2) (in the case of Directors nominated by 
        Nomination Panels or the Board).
          ``(3) Service until successor takes office.--A Director may 
        serve after the expiration of the Director's term until a 
        successor has been appointed or nominated and selected.
  ``(g) Meetings and Quorum.--
          ``(1) Meetings.--
                  ``(A) In general.--The Board shall meet at the call 
                of the Chairperson (or as otherwise provided in the 
                bylaws) and, at a minimum, on a quarterly basis.
                  ``(B) Initial meeting.--Not later than 90 days after 
                the date of enactment of this subtitle, the Board shall 
                hold its initial meeting.
                  ``(C) In-person meeting.--At least 1 meeting of the 
                Board each year shall be conducted in person.
          ``(2) Quorum.--A quorum of the Board, consisting of a 
        majority of the Directors then in office, shall be required to 
        conduct any business of the Board.
          ``(3) Approval of board actions.--Except as otherwise 
        provided, the threshold for approving Board actions shall be as 
        set forth in the bylaws.
  ``(h) Removal of Directors.--A Director may be removed in accordance 
with section 90307(c) and the bylaws of the Corporation.

``Sec. 90307. Fiduciary duties and qualifications of Directors

  ``(a) Fiduciary Duties.--The fiduciary duties of a Director shall be 
solely and exclusively to the Corporation.
  ``(b) Qualifications.--
          ``(1) In general.--Only a citizen of the United States may be 
        appointed or nominated as a Director.
          ``(2) Prohibitions.--An individual may not serve as a 
        Director if the individual--
                  ``(A) is an officer, agent, or employee of the 
                Corporation (other than the CEO);
                  ``(B) is, or has been within the preceding 2 years, a 
                Member of Congress;
                  ``(C) is an elected official serving in a State, 
                local, or Tribal government;
                  ``(D) is an officer or employee of the Federal 
                Government or any State, local, or Tribal government;
                  ``(E) is a director, officer, trustee, agent, or 
                employee of--
                          ``(i) a bargaining agent that represents 
                        employees of the Corporation;
                          ``(ii) an entity that has a material interest 
                        as a supplier, client, or user of the 
                        Corporation's services; or
                          ``(iii) any of the entities determined under 
                        section 90305(c);
                  ``(F) receives any form of compensation or material 
                benefit from an entity that has a material interest as 
                a supplier, client, or user of the Corporation's 
                services, excluding compensation from a defined benefit 
                plan resulting from the individual's past employment; 
                or
                  ``(G) has or holds any other fiduciary duty, legal 
                obligation, office, employed position, or material 
                interest that would prevent the individual from 
                satisfying the requirements of subsection (a) under the 
                applicable laws of the State in which the Corporation 
                is incorporated.
          ``(3) Exception.--Subparagraphs (C) and (D) of paragraph (2) 
        shall not apply to an individual solely because the individual 
        is an elected member of a school board or is employed by an 
        institution of higher education (as defined in section 101 of 
        the Higher Education Act of 1965 (20 U.S.C. 1001)).
  ``(c) Breach of Fiduciary Duty to Corporation.--
          ``(1) In general.--The Board shall remove any Director who 
        breaches a fiduciary duty to the Corporation--
                  ``(A) pursuant to procedures to be established in the 
                bylaws of the Corporation; and
                  ``(B) not later than 30 days after determining that a 
                breach has occurred.
          ``(2) Limited private right of action.--The Corporation shall 
        have the exclusive right to seek injunctive or monetary relief 
        (or both) against a Director or former Director for a breach of 
        a fiduciary duty to the Corporation.
  ``(d) Prohibition on Indemnification and Certain Insurance.--
Notwithstanding section 90312 or any other provision of law, the 
Corporation shall neither indemnify nor procure insurance to indemnify 
any Director for liability relating to a breach of a fiduciary duty to 
the Corporation.

``Sec. 90308. Bylaws and duties

  ``(a) In General.--The Board shall adopt and amend the bylaws of the 
Corporation.
  ``(b) Bylaws.--The bylaws of the Corporation shall include, at a 
minimum--
          ``(1) the duties and responsibilities of the Board (including 
        those described in subsection (c)), officers, Advisory Board, 
        and committees of the Corporation; and
          ``(2) the operational procedures of the Corporation.
  ``(c) Duties and Responsibilities of Board.--The Board shall be 
responsible for actions of the Corporation, including--
          ``(1) adoption of an annual budget;
          ``(2) approval of a strategic plan, including updates 
        thereto, and other plans supporting the strategy laid out in 
        the strategic plan;
          ``(3) adoption of an annual action plan;
          ``(4) authorization of any form or instrument of 
        indebtedness, including loans and bond issues;
          ``(5) assessment, modification, and collection of charges and 
        fees for air traffic services in accordance with the standards 
        described in section 90313;
          ``(6) hiring and supervision of the CEO;
          ``(7) establishment and maintenance of an appropriately 
        funded reserve fund;
          ``(8) adoption of a code of conduct and code of ethics for 
        Directors, officers, agents, and employees of the Corporation;
          ``(9) establishment of a process for ensuring that the 
        fiduciary duties of a Director are solely and exclusively to 
        the Corporation;
          ``(10) establishment of a process for the removal of a 
        Director, including the removal of a Director for breach of a 
        fiduciary duty to the Corporation; and
          ``(11) adoption of a process for filling vacancies on the 
        Board.

``Sec. 90309. Committees of Board; independent auditors

  ``(a) Committees of Board.--The Board shall establish and maintain a 
Safety Committee, a Compensation Committee, a Technology Committee, and 
such other committees as the Board determines are necessary or 
appropriate to carry out the responsibilities of the Board effectively. 
Such committees shall be composed solely of Directors.
  ``(b) Independent Auditors.--The Board shall retain independent 
auditors to conduct annual audits of the Corporation's financial 
statements and internal controls.

``Sec. 90310. Advisory Board

  ``(a) Establishment.--There shall be an Advisory Board of the 
Corporation.
  ``(b) Duties.--The Advisory Board--
          ``(1) shall conduct such activities as the Board determines 
        appropriate;
          ``(2) shall submit to the Board recommendations for Directors 
        to be nominated and selected under section 90306(b)(11); and
          ``(3) may, on its own initiative, study, report, and make 
        recommendations to the Board on matters relating to the 
        Corporation's provision of air traffic services and associated 
        safety considerations.
  ``(c) Membership.--
          ``(1) Number.--The Advisory Board shall consist of not more 
        than 15 individuals, who are citizens of the United States, 
        representing interested entities.
          ``(2) Representatives.--The members of the Advisory Board 
        shall include, at a minimum, representatives of the following:
                  ``(A) Air carriers.
                  ``(B) General aviation.
                  ``(C) Business aviation.
                  ``(D) Commercial service airports.
                  ``(E) Operators and manufacturers of commercial 
                unmanned aircraft systems.
                  ``(F) Appropriate labor organizations.
                  ``(G) The Department of Defense.
                  ``(H) Small communities, including at least 1 
                community primarily served by a nonhub airport.
  ``(d) Structure; Terms.--The membership and structure of the Advisory 
Board, including the duration that individuals may serve on the 
Advisory Board, shall be determined by the Board in accordance with the 
bylaws of the Corporation.

``Sec. 90311. Officers and their responsibilities

  ``(a) Chief Executive Officer.--
          ``(1) Hiring.--
                  ``(A) In general.--The Corporation shall have a Chief 
                Executive Officer, who shall be hired by the Board to 
                manage the Corporation.
                  ``(B) Qualifications.--The CEO shall be an individual 
                who--
                          ``(i) is a citizen of the United States;
                          ``(ii) satisfies the qualifications to serve 
                        as a Director under section 90307; and
                          ``(iii) by reason of professional background 
                        and experience, is especially qualified to 
                        manage the Corporation.
          ``(2) Duties.--The CEO shall--
                  ``(A) be responsible for the management and direction 
                of the Corporation, including its officers and 
                employees, and for the exercise of all powers and 
                responsibilities of the Corporation;
                  ``(B) establish Corporation offices and define the 
                responsibilities and duties of the offices, with full 
                authority to organize the Corporation as required; and
                  ``(C) designate an officer of the Corporation who is 
                vested with the authority to act in the capacity of the 
                CEO if the CEO is absent or incapacitated.
          ``(3) Scope of authority.--
                  ``(A) In general.--The CEO shall be subject to the 
                policy guidance of the Board, report to the Board, and 
                serve at the pleasure of the Board.
                  ``(B) Authority of board.--The Board may modify or 
                revoke actions of the CEO pursuant to procedures set 
                forth in the bylaws of the Corporation.
  ``(b) Other Officers and Employees.--
          ``(1) In general.--The CEO shall appoint such other officers 
        and employees of the Corporation as the CEO determines 
        appropriate.
          ``(2) Chief operating officer; chief financial officer.--An 
        appointment of an individual as chief operating officer or 
        chief financial officer by the CEO shall be subject to the 
        approval of the Board.
          ``(3) Delegation of functions.--The CEO may delegate to the 
        other officers and employees of the Corporation any of the 
        functions of the Corporation.
          ``(4) Compensation.--Compensation for the CEO, chief 
        operating officer, and chief financial officer shall be set by 
        the Board.
  ``(c) Interim CEO.--
          ``(1) Hiring.--Not later than 60 days after the date of the 
        Secretary's appointment and selection of Directors under 
        section 90306(c)(1)(B), the Board shall hire an Interim Chief 
        Executive Officer who meets the qualifications specified in 
        subsection (a)(1)(B).
          ``(2) Authority and term.--
                  ``(A) Authority.--The Interim CEO shall--
                          ``(i) exercise the same authority as the CEO, 
                        including serving on the Board;
                          ``(ii) carry out the same duties as the CEO; 
                        and
                          ``(iii) be subject to the same prohibitions 
                        and limitations as the CEO.
                  ``(B) Term.--The Interim CEO shall serve until the 
                Board hires a CEO.
          ``(3) Statutory construction.--Nothing in this subsection may 
        be construed to restrict the ability of the Board to hire the 
        individual serving as the Interim CEO to be the CEO.

``Sec. 90312. Authority of Corporation

  ``(a) General Authority.--Except as otherwise provided in this 
subtitle, the Corporation--
          ``(1) shall have perpetual succession in its corporate name 
        unless dissolved by law;
          ``(2) may adopt and use a corporate seal;
          ``(3) may own, lease, use, improve, and dispose of such 
        property as the Corporation considers necessary to carry out 
        the purposes of the Corporation;
          ``(4) may contract with other parties;
          ``(5) may sue or be sued;
          ``(6) may be held liable under civil and criminal law;
          ``(7) may indemnify the Directors, including the Interim CEO 
        or CEO, and other officers, agents, and employees of the 
        Corporation; and
          ``(8) shall have such other corporate powers as are necessary 
        or appropriate to carry out the purposes of this subtitle and 
        of the Corporation.
  ``(b) Limitations.--
          ``(1) Business activities.--The Corporation may only engage 
        in business activities that are--
                  ``(A) related to carrying out air traffic services; 
                or
                  ``(B) ancillary or incidental to carrying out such 
                services.
          ``(2) Equity shares.--The Corporation may not issue or sell 
        equity shares in the Corporation.

``Sec. 90313. Charges and fees for air traffic services

  ``(a) Assessment and Collection of Charges and Fees.--Beginning on 
the date of transfer, and subject to this section and section 90502, 
the Corporation may assess and collect charges and fees from air 
traffic services users for air traffic services provided by the 
Corporation in United States airspace or international airspace 
delegated to the United States.
  ``(b) Board Approval of Charges and Fees.--The Board shall--
          ``(1) approve a proposal for--
                  ``(A) an initial schedule of charges and fees 
                pursuant to subsection (g); and
                  ``(B) any change in the charges or fees;
          ``(2) provide air traffic services users and other interested 
        persons notice of a proposal approved under paragraph (1) in a 
        manner and form prescribed by the Secretary; and
          ``(3) submit a proposal approved under paragraph (1) (other 
        than a proposal to decrease a charge or fee) to the Secretary 
        90 days prior to the effective date of the proposal in a manner 
        and form prescribed by the Secretary.
  ``(c) Secretarial Review.--
          ``(1) Public comment.--Upon receiving a proposal from the 
        Corporation under subsection (b)(3), the Secretary shall 
        solicit public comments on the proposal for a 30-day period.
          ``(2) Secretarial approval.--
                  ``(A) In general.--Not later than 15 days after the 
                last day of the 30-day public comment period, the 
                Secretary shall--
                          ``(i) approve the proposal upon determining 
                        that the proposal complies with the standards 
                        in subsection (d); or
                          ``(ii) disapprove the proposal upon 
                        determining that the proposal does not comply 
                        with the standards in subsection (d).
                  ``(B) Effectiveness of proposal.--If the Secretary 
                does not issue a timely decision pursuant to 
                subparagraph (A), the proposal shall be deemed 
                approved.
  ``(d) Standards.--The Secretary shall apply the following standards 
in reviewing a proposal from the Corporation under subsection (c):
          ``(1) The amount or type of charges and fees paid by an air 
        traffic services user may not--
                  ``(A) be determinant of the air traffic services 
                provided to the user; or
                  ``(B) adversely impact the ability of the user to use 
                or access any part of the national airspace system.
          ``(2) Charges and fees shall be consistent with the document 
        titled `ICAO's Policies on Charges for Airports and Air 
        Navigation Services', Ninth Edition, 2012.
          ``(3) Charges and fees may not be discriminatory.
          ``(4) Charges and fees shall be consistent with United States 
        international obligations.
          ``(5) Certain categories of air traffic services users may be 
        charged on a flat fee basis so long as the charge or fee is 
        otherwise consistent with this subsection.
          ``(6) Charges and fees may not be imposed for air traffic 
        services provided with respect to operations of aircraft that 
        qualify as public aircraft under sections 40102(a) and 40125.
          ``(7) Charges and fees may not be imposed for air traffic 
        services provided with respect to aircraft operations conducted 
        pursuant to part 91, 133, 135, 136, or 137 of title 14, Code of 
        Federal Regulations.
          ``(8) Charges and fees may not be structured such that air 
        traffic services users have incentives to operate in ways that 
        diminish safety to avoid the charges and fees.
          ``(9) Charges and fees, based on reasonable and financially 
        sound projections, may not generate revenues exceeding the 
        Corporation's current and anticipated financial requirements in 
        relation to the provision of air traffic services.
  ``(e) Corporation's Financial Requirements.--In determining whether a 
proposal received from the Corporation under subsection (b) would 
generate revenues in compliance with subsection (d)(9), the Secretary 
shall consider costs and other liabilities of the Corporation, 
including--
          ``(1) costs incurred before the date of transfer;
          ``(2) operations and maintenance costs;
          ``(3) management and administrative costs;
          ``(4) depreciation costs;
          ``(5) interest costs and other expenses related to debt 
        servicing;
          ``(6) cash reserves or other requirements needed to maintain 
        credit ratings or comply with debt covenants; and
          ``(7) any tax liability.
  ``(f) Payment of Charges and Fees.--
          ``(1) In general.--An air traffic services user shall pay a 
        charge or fee assessed by the Corporation under subsection (a) 
        for services rendered and any interest and penalties assessed 
        under paragraph (2).
          ``(2) Late payment or nonpayment.--The Corporation may assess 
        and collect interest and penalties for late payment or 
        nonpayment of a charge or fee assessed by the Corporation under 
        subsection (a).
          ``(3) Private right of action.--The Corporation may file suit 
        in any district court of the United States having jurisdiction 
        over the parties, without respect to the amount in controversy 
        and without regard to the citizenship of the parties, to 
        enforce this subsection not later than 2 years after the date 
        on which a claim accrues. A claim accrues, under this 
        paragraph, upon the rendering of the relevant air traffic 
        services by the Corporation.
  ``(g) Initial Schedule.--Notwithstanding subsection (b)(3), the 
Corporation shall propose an initial schedule of charges and fees at 
least 180 days before the date of transfer.
  ``(h) Aircraft Operation Defined.--In this section, the term 
`aircraft operation' means the movement of an aircraft beginning with 
the take-off of the aircraft and ending with the landing of the 
aircraft.

``Sec. 90314. Preemption of authority over air traffic services

  ``(a) State Defined.--In this section, the term `State' means a 
State, the District of Columbia, and a territory or possession of the 
United States.
  ``(b) Preemption.--A State, political subdivision of a State, or 
political authority of at least 2 States may not enact or enforce a 
law, regulation, or other provision having the force and effect of law 
related to air traffic services.
  ``(c) Airport Owner or Operator.--Subsection (b) may not be construed 
to limit a State, political subdivision of a State, or political 
authority of at least 2 States that owns or operates a landing area 
from carrying out its proprietary powers and rights over the landing 
area.

``Sec. 90315. Actions by and against Corporation

  ``(a) Jurisdiction for Legal Actions Generally.--
          ``(1) Jurisdiction of united states district courts.--The 
        United States district courts shall have original jurisdiction 
        over all actions brought by or against the Corporation, except 
        as otherwise provided in this subtitle.
          ``(2) Removal of actions in state courts.--Any action brought 
        in a State court to which the Corporation is a party shall be 
        removed to the appropriate United States district court under 
        the provisions of chapter 89 of title 28.
  ``(b) Testimony of Corporation Employees.--
          ``(1) In general.--Except with the consent of the chief legal 
        officer of the Corporation, employees of the Corporation may 
        not provide expert opinion or expert testimony in civil 
        litigation related to the Corporation.
          ``(2) Exceptions.--The Corporation may prescribe the 
        circumstances, if any, under which employees of the Corporation 
        may provide expert opinion or expert testimony in civil 
        litigation related to the Corporation.

``Sec. 90316. Transfer of Federal personnel to Corporation

  ``(a) Transfer of FAA Employees to Corporation.--
          ``(1) Process.--Not later than 180 days after the date of 
        enactment of this subtitle, the Secretary, after meeting and 
        conferring with the CEO and representatives of the labor 
        organizations recognized under section 7111 of title 5 as 
        exclusive representatives of FAA employees, shall commence a 
        process to determine, consistent with the purposes of this 
        subtitle, which activities and employees, or categories of 
        employees, of the FAA shall be transferred to the Corporation 
        on or before the date of transfer.
          ``(2) Determination; transfer.--The Secretary shall--
                  ``(A) not later than 180 days prior to the date of 
                transfer, complete the determination of which 
                activities, employees, or categories of employees shall 
                be transferred to the Corporation under paragraph (1);
                  ``(B) upon completing the determination, notify the 
                CEO, the labor organizations recognized under section 
                7111 of title 5 as exclusive representatives of FAA 
                employees, and all affected employees of such 
                determination; and
                  ``(C) on or before the date of transfer, transfer 
                such activities, employees, or categories of employees.
  ``(b) Subsequent Transfer of Employees.--
          ``(1) In general.--
                  ``(A) Transfers from faa to corporation.--During the 
                180-day period beginning on the date of transfer, the 
                Secretary, after meeting and conferring with the CEO 
                and representatives of the certified labor 
                organizations recognized under section 91105 and labor 
                organizations recognized under section 7111 of title 5 
                as exclusive representatives of FAA employees, may 
                transfer an employee from the FAA to the Corporation if 
                the Secretary, after meeting and conferring with the 
                CEO and the representatives, finds that the 
                determination with respect to the employee under 
                subsection (a) was inconsistent with the purposes of 
                this subtitle.
                  ``(B) Transfers from corporation to faa.--During the 
                180-day period beginning on the date of transfer, the 
                Secretary, after meeting and conferring with the CEO 
                and representatives of the certified labor 
                organizations recognized under section 91105 and labor 
                organizations recognized under section 7111 of title 5 
                as exclusive representatives of FAA employees, may 
                transfer an employee from the Corporation to the FAA if 
                the Secretary, after the consultation with the CEO and 
                the representatives, finds that the determination with 
                respect to the employee under subsection (a) was 
                inconsistent with the purposes of this subtitle.
          ``(2) Reemployment of federal employees.--An employee 
        transferred from the Corporation to the FAA under this 
        subsection shall be entitled to the same rights and benefits, 
        and reemployment, in the same manner as if covered by section 
        3582 of title 5 notwithstanding section 8347(o), 8713, or 8914 
        of such title.
          ``(3) Election of benefits for employees subject to delayed 
        transfer to corporation.--In the case of an employee of the FAA 
        transferred to the Corporation under this subsection, such 
        employee shall be afforded the opportunity to make the election 
        provided under section 91102(b) with respect to benefits.
  ``(c) Corporation Employee Benefits.--At least 180 days before the 
date of transfer, the Corporation shall establish a compensation and 
benefits program for--
          ``(1) employees hired by the Corporation after the date of 
        transfer; and
          ``(2) employees that make the election under section 
        91102(b)(1)(A)(ii).
  ``(d) Protections for Employees Not Transferred to Corporation.--For 
those employees of the FAA directly involved in the operation of air 
traffic services who are not transferred to the Corporation pursuant to 
subsection (a) or who transferred back to the FAA pursuant to 
subsection (b), the Secretary shall provide to such employees 
compensation and benefits consistent with the applicable collective-
bargaining agreement that are not less than the level of compensation 
and benefits provided to such FAA employees prior to the date of 
transfer unless mutually agreed to by the FAA and representatives of 
the certified labor organization.
  ``(e) Suitability, Clearances, and Medical Qualifications.--All 
federally issued or federally required credentials, certificates, 
clearances, medical qualifications, access rights, substance testing 
results, and any other Federal permissions or approvals held by any 
employee of the FAA in the operation of air traffic services that are 
valid and effective on the day prior to the date of transfer shall 
remain valid and effective after the date of transfer--
          ``(1) unless revoked for cause; or
          ``(2) until equivalent or substantially equivalent 
        credentials, certificates, clearances, medical qualifications, 
        access rights, substance testing results, and any other Federal 
        permissions or approvals have been issued to the employee on or 
        after the date of transfer.
  ``(f) Transition Agreements.--
          ``(1) Bipartite agreement.--
                  ``(A) Meetings.--At least 180 days before the date of 
                transfer, the Corporation shall meet with the labor 
                organizations recognized under section 7111 of title 5 
                as exclusive representatives of FAA employees to 
                resolve employment-related transition matters that 
                affect employees represented by those labor 
                organizations and that are not otherwise covered under 
                this section.
                  ``(B) Duty to bargain in good faith.--The Corporation 
                and the labor organizations described in subparagraph 
                (A) (in this subsection referred to as the `parties') 
                shall be subject to the duty to bargain in good faith 
                under chapter 911 in any meetings pursuant to this 
                paragraph.
                  ``(C) Dispute resolution procedures.--If the parties 
                fail to reach an agreement over the initial or 
                subsequent employment-related transition issues not 
                otherwise covered under this section, the matters shall 
                be subject to the dispute resolution procedures 
                established under subsections (a), (b), and (e) of 
                section 91107.
          ``(2) Tripartite agreement.--
                  ``(A) Meetings.--At least 1 year before the date of 
                transfer, the Corporation and the FAA shall meet with 
                the labor organizations recognized under section 7111 
                of title 5 as exclusive representatives of FAA 
                employees to resolve transition matters related to the 
                separation of air traffic services from the FAA 
                pursuant to this subtitle that affect employees 
                represented by those labor organizations and that are 
                not otherwise covered under this section.
                  ``(B) Duty to bargain in good faith.--To the extent 
                applicable, the Corporation and the labor organizations 
                described in subparagraph (A) shall be subject to the 
                duty to bargain in good faith under chapter 911 in any 
                meetings pursuant to this paragraph.
                  ``(C) Dispute resolution procedures.--If the 
                Corporation and the certified labor organizations 
                described in subparagraph (A) fail to reach an 
                agreement over the initial or subsequent transition 
                issues related to the separation of air traffic 
                services from the FAA, not otherwise covered under this 
                section, the matters shall be subject to the dispute 
                resolution procedures established under subsections 
                (a), (b), and (e) of section 91107.

``Sec. 90317. Transfer of facilities to Corporation

  ``(a) Inventory of FAA Property and Facilities.--At least 1 year 
before the date of transfer, the Secretary, in consultation with the 
CEO, shall identify the licenses, patents, software rights, and real 
and personal property, including air navigation facilities (as defined 
in section 40102(a)) of the United States under FAA jurisdiction, that 
are necessary and appropriate for the Corporation to carry out the air 
traffic services transferred to the Corporation under this subtitle.
  ``(b) Transfer of Federal Property.--
          ``(1) Conveyance of property to corporation.--On the date of 
        transfer, the Secretary shall convey, without charge, all 
        right, title, and interest of the United States in, and the 
        use, possession, and control of, properties identified under 
        subsection (a).
          ``(2) Sale of property by corporation after date of 
        transfer.--If the Corporation sells any of the property 
        conveyed to the Corporation under paragraph (1), the 
        Corporation shall use the proceeds received from the sale of 
        such property for the acquisition or improvement of air 
        navigation facilities or other capital assets.
          ``(3) Reversionary interest.--Any conveyance of real property 
        under this section located at an FAA technical facility shall 
        be subject to the condition that all right, title, and interest 
        in the real property shall revert to the United States and be 
        placed under the administrative control of the Secretary if--
                  ``(A) the Corporation determines the real property is 
                no longer necessary to carry out the air traffic 
                services transferred to the Corporation under this 
                subtitle; and
                  ``(B) the Secretary determines the reversion is 
                necessary to protect the interests of the United 
                States.
          ``(4) Safety air traffic services equipment in remote 
        locations.--
                  ``(A) Maintenance by corporation.--Any equipment 
                identified pursuant to subsection (a) and conveyed to 
                the Corporation pursuant to paragraph (1) that is 
                located in a noncontiguous State of the United States 
                and is critical to the safe provision of air traffic 
                services in that State may not be sold and shall be 
                maintained and, as determined necessary by the 
                Corporation, upgraded by the Corporation.
                  ``(B) Equipment critical to safe provision of air 
                traffic services.--For purposes of this paragraph, 
                equipment critical to the safe provision of air traffic 
                services includes GPS receivers, data link 
                transceivers, ADS-B, multi-function displays, flight 
                information services, moving map displays, terrain 
                databases, airport lighting, and mountain pass cameras.
  ``(c) Consolidation and Realignment of Transferred Services and 
Facilities.--
          ``(1) In general.--At least 180 days before the date of 
        transfer, and subject to section 91107, the Corporation, in 
        consultation with representatives of labor organizations 
        representing operations and maintenance employees of the air 
        traffic control system, shall establish a process for the 
        realignment and consolidation of services and facilities to be 
        transferred to the Corporation from the FAA.
          ``(2) Moratorium.--Except as otherwise provided, there shall 
        be a moratorium on any effort by the Administrator or the 
        Corporation to consolidate or realign air traffic services or 
        facilities until the process required by paragraph (1) is 
        established.

``Sec. 90318. Approval of transferred air navigation facilities and 
                    other equipment

  ``On the date of transfer, the Corporation is authorized to operate 
all air navigation facilities and other equipment conveyed pursuant to 
section 90317 without additional approval or certification by the 
Secretary.

``Sec. 90319. Use of spectrum systems and data

  ``Beginning on the date of transfer, the Secretary shall provide the 
Corporation with such access to the spectrum systems used by the FAA 
before the date of transfer to provide air traffic services, and any 
successor spectrum systems, and to the data from such systems, as is 
necessary to enable the Corporation to provide air traffic services 
under this subtitle.

``Sec. 90320. Transition plan

  ``(a) Transition Team.--Not later than 120 days after the date of 
enactment of this subtitle, the Secretary, after meeting and conferring 
with the CEO or Interim CEO, shall establish a transition team to 
develop, consistent with this subtitle, a transition plan to be 
reviewed by the Secretary and, if approved, utilized by the Department 
of Transportation during the period in which air traffic services are 
transferred from the FAA to the Corporation.
  ``(b) Membership.--The transition team shall consist of 12 
individuals, who are citizens of the United States, as follows:
          ``(1) 5 representatives appointed by the Secretary, 
        including--
                  ``(A) the Deputy Administrator of the FAA;
                  ``(B) the Director of the FAA Mike Monroney 
                Aeronautical Center;
                  ``(C) the Director of the FAA William J. Hughes 
                Technical Center; and
                  ``(D) 2 representatives from the Office of Management 
                and Budget, appointed with the concurrence of the 
                Director of the Office of Management and Budget.
          ``(2) 1 representative appointed by the exclusive bargaining 
        representative of air traffic controllers certified under 
        section 7111 of title 5.
          ``(3) 1 representative appointed by the exclusive bargaining 
        representative for airway transportation systems specialists in 
        the Air Traffic Organization technical operations services 
        certified under section 7111 of title 5.
          ``(4) 5 representatives appointed by the CEO.
  ``(c) Transition Plan.--
          ``(1) In general.--Not later than 45 days after the 
        establishment of the transition team, the transition team shall 
        develop and submit to the Secretary an executable transition 
        plan.
          ``(2) Contents.--The transition plan shall set forth a plan 
        for the Secretary, in consultation with the CEO or Interim CEO, 
        to--
                  ``(A) identify property, facilities, equipment, and 
                obligations, contractual or otherwise, related to the 
                provision of air traffic services; and
                  ``(B) safely and efficiently transfer Federal 
                personnel, property, facilities, equipment, and 
                obligations, contractual and otherwise, related to the 
                provision of air traffic services to the Corporation on 
                or before the date of transfer.
  ``(d) Secretarial Review.--
          ``(1) In general.--Not later than 30 days after receipt of 
        the transition plan, the Secretary shall review and, if 
        appropriate, approve the plan.
          ``(2) Disapproval.--If the Secretary does not approve a 
        submitted transition plan, the transition team shall revise the 
        plan and resubmit it to the Secretary not later than 30 days 
        after receiving notice of the disapproval by the Secretary.
  ``(e) Termination.--The transition team shall terminate upon approval 
of a transition plan by the Secretary.

       ``CHAPTER 905--REGULATION OF AIR TRAFFIC SERVICES PROVIDER

``Sec.
``90501. Safety oversight and regulation of Corporation.
``90502. Resolution of disputes concerning air traffic services charges 
and fees.
``90503. International agreements and activities.
``90504. Availability of safety information.
``90505. Reporting of safety violations to FAA.
``90506. Insurance requirements.

``Sec. 90501. Safety oversight and regulation of Corporation

  ``(a) Performance-Based Regulations and Minimum Safety Standards.--
After consultation with the Corporation and the FAA's certified 
bargaining representatives and before the date of transfer, the 
Secretary shall--
          ``(1) prescribe performance-based regulations and minimum 
        safety standards for the operation of air traffic services by 
        the Corporation;
          ``(2) prescribe performance-based regulations and minimum 
        safety standards for the certification and operation of air 
        navigation facilities (other than facilities that may be 
        operated without additional approval or certification pursuant 
        to section 90318); and
          ``(3) identify policies and other administrative materials of 
        the FAA in effect before the date of transfer for providing air 
        traffic services that will apply to the Corporation.
  ``(b) Safety Management System.--
          ``(1) In general.--The regulations and standards prescribed 
        pursuant to subsection (a) shall include a safety management 
        system for air traffic services provided by the Corporation.
          ``(2) Foundation.--The safety management system shall be 
        based on the safety management system used by the Air Traffic 
        Organization of the FAA before the date of transfer.
          ``(3) Use by corporation.--Beginning on the date of transfer, 
        the Corporation shall use the safety management system, 
        including any changes thereto, when assessing and managing 
        risks in all procedures, processes, and practices necessary to 
        provide air traffic services.
          ``(4) FAA oversight.--To the maximum extent practicable, for 
        at least 2 years after the date of transfer, the Air Traffic 
        Safety Oversight Service of the FAA shall employ the same 
        oversight processes and procedures in use before the date of 
        transfer.
  ``(c) Proposals To Modify Air Traffic Management Procedures, 
Assignments, and Classifications of Airspace.--
          ``(1) Submission of proposals to secretary.--The Corporation 
        or another interested party may submit to the Secretary a 
        proposal to modify--
                  ``(A) air traffic management procedures, assignments, 
                classifications of airspace, or other actions affecting 
                airspace access that are developed pursuant to the 
                safety management system; and
                  ``(B) FAA policies and other administrative materials 
                identified under subsection (a)(2).
          ``(2) Review and approval of proposals.--The regulations and 
        standards prescribed under subsection (a)(1) shall include a 
        process for expedited review and approval of a proposal 
        received under paragraph (1).
          ``(3) Standard for approval.--The Secretary shall approve a 
        proposal received under paragraph (1) if the Secretary 
        determines that the proposal complies with the regulations and 
        standards prescribed under subsection (a)(1) and is otherwise 
        consistent with the public interest, including that the 
        proposal would not materially reduce access to a public-use 
        airport.
          ``(4) Approvals and disapprovals.--
                  ``(A) In general.--During the 45-day period beginning 
                on the date of receipt of a proposal under paragraph 
                (1), the Secretary shall approve or disapprove the 
                proposal.
                  ``(B) Written explanation.--If the Secretary 
                disapproves the proposal, the Secretary shall provide--
                          ``(i) a written explanation of the 
                        Secretary's decision, including--
                                  ``(I) any instances of inconsistency 
                                with the regulations and standards 
                                prescribed under subsection (a)(1); and
                                  ``(II) any other information that 
                                formed the basis for the Secretary's 
                                decision; and
                          ``(ii) a description of any modifications to 
                        the proposal that are necessary to obtain 
                        approval.
          ``(5) Failure to act.--If the Secretary fails to act on a 
        proposal received under paragraph (1) during the 45-day period 
        described in paragraph (4)(A), the Corporation or other party 
        making the proposal shall be entitled to a writ of mandamus in 
        a Federal district court with venue.
  ``(d) Judicial Review.--
          ``(1) In general.--Any decision made by the Secretary to 
        approve or disapprove a proposal received under subsection 
        (c)(1) shall be subject to judicial review pursuant to 
        subsections (a), (b), (d), and (e) of section 46110.
          ``(2) Standard of review.--
                  ``(A) Disapprovals.--In the case of a petition filed 
                under section 46110(a) to review a decision of the 
                Secretary that disapproves a proposal received from the 
                Corporation under subsection (c)(1), the court shall, 
                without deference to the Secretary's determination, 
                review de novo the record to determine if the 
                Secretary's determination is consistent with the 
                regulations and standards prescribed under subsection 
                (a)(1).
                  ``(B) Approvals.--In the case of a petition filed 
                under section 46110(a) to review a decision of the 
                Secretary that approves a proposal received from the 
                Corporation under subsection (c)(1), the court may 
                overturn the approval only upon a finding of clear 
                error or an abuse of discretion.
  ``(e) Compilation.--
          ``(1) Establishment.--The Corporation shall establish and 
        maintain a compilation of the policies and other materials 
        identified under subsection (a)(2).
          ``(2) Updates.--The Corporation shall update the compilation 
        each time a proposal described in subsection (c)(1)(B) is 
        approved.
          ``(3) Publication.--The Corporation shall make the 
        compilation available to the public.
  ``(f) Special Rules for Proposals Affecting Certain Airspace.--The 
regulations and standards prescribed under subsection (a)(1) shall 
include procedures (including advance submission of necessary 
supporting data, analysis, and documentation) for the Secretary to 
evaluate, at least 180 days before its submission under subsection 
(c)(1), a proposal for an airspace change that would affect airspace 
that is--
          ``(1) within an area designated as a `Metroplex' by the FAA 
        as of March 30, 2017;
          ``(2) within an area subject to a major, large-scale airspace 
        redesign project; or
          ``(3) adjacent to or containing special use airspace.
  ``(g) Exempted Airspace Actions.--The requirements of this section 
shall not apply to--
          ``(1) temporary airspace actions directed by the 
        Administrator or Secretary;
          ``(2) airspace actions as described in section 90904; or
          ``(3) certain emergency circumstances, as defined by the 
        Secretary by regulation.
  ``(h) Delegation.--Notwithstanding section 90303(b), and except for 
the process and procedures required by section 90703(b), the Secretary 
may delegate safety oversight functions to the Administrator.

``Sec. 90502. Resolution of disputes concerning air traffic services 
                    charges and fees

  ``(a) Authority To Request Secretary's Determination.--
          ``(1) In general.--The Secretary shall issue a determination 
        as to whether a charge or fee assessed by the Corporation for 
        the use of air traffic services in United States airspace or 
        international airspace delegated to the United States is 
        correct if a written complaint for such determination is filed 
        with the Secretary by an air traffic services user not later 
        than 60 days after the air traffic services user receives an 
        assessment or invoice from the Corporation.
          ``(2) Treatment of interest and penalties.--In this section, 
        the terms `charge' and `fee' include any interest and penalty 
        relating thereto.
  ``(b) Procedural Regulations.--At least 270 days before the date of 
transfer, the Secretary shall publish in the Federal Register final 
regulations, policy statements, or guidelines establishing the 
procedures for acting upon written complaints filed under subsection 
(a)(1) and requests of the Corporation pursuant to subsection (e)(3).
  ``(c) Determination of Correctness.--In determining under subsection 
(a)(1) whether a charge or fee is correct, the Secretary shall 
determine only if the charge or fee is consistent with approved charges 
or fees pursuant to section 90313.
  ``(d) Decisions by Secretary.--The final regulations, policy 
statements, or guidelines required in subsection (b) shall provide for 
the following:
          ``(1) Not later than 90 days after an air traffic services 
        user files with the Secretary a written complaint relating to 
        an assessed or invoiced air traffic services charge or fee, the 
        Secretary shall issue a final order determining whether the 
        charge or fee is correct.
          ``(2) Not later than 30 days after such complaint is filed 
        with the Secretary, the Secretary shall dismiss the complaint 
        if no significant dispute exists or shall assign the matter to 
        an administrative law judge. Thereafter, the matter shall be 
        handled in accordance with part 302 of title 14, Code of 
        Federal Regulations, or as modified by the Secretary, to ensure 
        an orderly disposition of the matter within the 90-day period 
        referred to in paragraph (1) and any specifically applicable 
        provisions of this section.
          ``(3) The administrative law judge shall issue a recommended 
        decision not later than 45 days after the complaint is assigned 
        or within such shorter period as the Secretary may specify.
          ``(4) If the Secretary, upon the expiration of 90 days after 
        the filing of the complaint, has not issued a final order, the 
        decision of the administrative law judge shall be deemed to be 
        the final order of the Secretary.
          ``(5) Any party to the dispute may seek review of a final 
        order of the Secretary under this subsection in the Circuit 
        Court of Appeals for the District of Columbia Circuit or the 
        court of appeals in the circuit with venue.
          ``(6) Any findings of fact in a final order of the Secretary 
        under this subsection, if supported by substantial evidence, 
        shall be conclusive if challenged in a court pursuant to this 
        subsection. No objection to such a final order may be 
        considered by the court unless objection was urged before an 
        administrative law judge or the Secretary at a proceeding under 
        this subsection or, if not so urged, unless there were 
        reasonable grounds for failure to do so.
  ``(e) Payment Under Protest; Guarantee of Air Traffic Services User 
Access.--
          ``(1) Payment under protest.--
                  ``(A) In general.--Any charge or fee that is the 
                subject of a complaint that is not dismissed by the 
                Secretary shall be paid by the complainant air traffic 
                services user to the Corporation under protest.
                  ``(B) Referral or credit.--Any amounts paid under 
                this subsection by a complainant air traffic services 
                user to the Corporation under protest shall be subject 
                to refund or credit to the air traffic services user in 
                accordance with directions in the final order of the 
                Secretary within 30 days of such order.
                  ``(C) Timely repayment.--In order to ensure the 
                timely repayment, with interest, of amounts in dispute 
                determined not to be correct by the Secretary, the 
                Corporation shall obtain a letter of credit, or surety 
                bond, or other suitable credit facility, equal to the 
                amount in dispute that is due during the 90-day period 
                referred to in subsection (d)(1), plus interest, unless 
                the Corporation and the air traffic services user agree 
                otherwise.
                  ``(D) Deadline.--The letter of credit, or surety 
                bond, or other suitable credit facility shall be 
                provided to the Secretary not later than 20 days after 
                the filing of the complaint and shall remain in effect 
                for 30 days after the issuance of a timely final order 
                by the Secretary determining whether such charge or fee 
                is correct.
          ``(2) Guarantee of air traffic services user access.--
        Contingent upon an air traffic services user's compliance with 
        the requirements of paragraph (1) and pending the issuance of a 
        final order by the Secretary determining the correctness of a 
        charge or fee that is the subject of a complaint filed under 
        subsection (a)(1), the Corporation may not withhold air traffic 
        services as a means of enforcing the charge or fee.
          ``(3) Noncompliance.--Prior to the issuance of a final order 
        by the Secretary determining the correctness of a charge or fee 
        that is the subject of a complaint filed under subsection 
        (a)(1), if an air traffic services user does not comply with 
        the requirements of paragraph (1), the Corporation shall 
        withhold air traffic services from the user if the Corporation 
        requests and receives approval from the Secretary to withhold 
        air traffic services.

``Sec. 90503. International agreements and activities

  ``(a) Consistency With International Obligations and Laws of Other 
Countries.--The Corporation shall provide air traffic services under 
this subtitle in a manner that is consistent with any obligation 
assumed by the United States in a treaty, convention, or agreement that 
may be in force between the United States and a foreign country or 
foreign countries or between the United States and an international 
organization, and shall take into consideration any applicable laws and 
requirements of foreign countries.
  ``(b) Prohibition.--The Corporation may not negotiate on behalf of or 
otherwise represent the United States before any foreign government or 
international organization.

``Sec. 90504. Availability of safety information

  ``(a) Safety Information.--The Corporation shall make available to 
air traffic services users and the public--
          ``(1) the same type of safety information made available by 
        the FAA before the date of transfer;
          ``(2) any additional safety information needed by air traffic 
        services users to operate safely; and
          ``(3) any updates or revisions to the safety information 
        referred to in paragraphs (1) and (2).
  ``(b) Meteorological Services; Aeronautical Charts.--The Corporation 
may provide for the dissemination of available aviation-related 
meteorological information and aeronautical charts to air traffic 
services users.

``Sec. 90505. Reporting of safety violations to FAA

  ``(a) In General.--In a manner, form, and process prescribed by the 
Administrator, the Corporation shall report to the Administrator 
complaints or instances of--
          ``(1) noncompliance with or deviations from air traffic 
        control clearances or instructions;
          ``(2) noncompliant operations in controlled airspace or 
        special use airspace; and
          ``(3) any other observed activities endangering persons or 
        property in the air or on the ground.
  ``(b) Assistance in Enforcement Actions.--The Corporation shall 
provide necessary assistance in any enforcement action taken by the 
Administrator resulting from a report of the Corporation or another 
person or entity.
  ``(c) Statutory Construction.--This section may not be construed to 
limit the authority of the Administrator to undertake enforcement 
actions upon the Administrator's initiative.

``Sec. 90506. Insurance requirements

  ``The Corporation shall maintain adequate liability insurance 
policies and coverages, as determined by the Secretary, including 
complete indemnification of employees of the Corporation for acts 
within the scope of employment.

``CHAPTER 907--GENERAL RIGHTS OF ACCESS TO AIRSPACE, AIRPORTS, AND AIR 
   TRAFFIC SERVICES VITAL FOR ENSURING SAFE OPERATIONS FOR ALL USERS

``Sec.
``90701. Access to airspace.
``90702. Access to airports.
``90703. Contract tower service after date of transfer.
``90704. Availability of safety information to general aviation 
operators.
``90705. Special rules and appeals process for air traffic management 
procedures, assignments, and classifications of airspace.
``90706. Definitions.

``Sec. 90701. Access to airspace

  ``The Secretary shall take such actions as are necessary to ensure 
that an air traffic services user is not denied access to airspace or 
air traffic services on the basis that the user is exempt from charges 
and fees under section 90313.

``Sec. 90702. Access to airports

  ``In carrying out section 90501(c)(3), the Secretary shall determine 
whether a proposal would materially reduce access to a public-use 
airport, including a general aviation or rural airport.

``Sec. 90703. Contract tower service after date of transfer

  ``(a) Transfer of Contract Tower Agreements to Corporation.--In 
carrying out section 91302(e), the Secretary shall take such actions as 
are necessary to ensure that the Corporation assumes the contract and 
other obligations associated with the operation of an air traffic 
control tower that, prior to the date of transfer, was operated under a 
contract pursuant to section 47124.
  ``(b) Special Rules for Proposals Relating to Operation of Contract 
Towers.--
          ``(1) In general.--The regulations and standards prescribed 
        under section 90501(a)(1) shall include procedures for the 
        Secretary to evaluate, under section 90501(c), a proposal for 
        an airspace change, including an airspace reclassification, 
        that results from the proposed closure of a tower that is 
        operating under a contract with the Corporation and that, prior 
        to the date of transfer, was operated under a contract with the 
        Secretary pursuant to section 47124.
          ``(2) Procedures.--The procedures required pursuant to 
        paragraph (1) shall include--
                  ``(A) the advance submission by the Corporation of 
                necessary supporting data, analysis, and documentation 
                related to--
                          ``(i) the safety risk management assessment 
                        of the proposed contract tower closure;
                          ``(ii) an assessment of the impact of the 
                        proposed closure on the operation of the 
                        national airspace system;
                          ``(iii) an assessment of the impact of the 
                        proposed closure on local communities, 
                        including with respect to air service;
                          ``(iv) an assessment, in consultation with 
                        the Secretary of Defense and the Secretary of 
                        Homeland Security, as appropriate, of any 
                        impact of the proposed closure on military 
                        aviation readiness and training, homeland 
                        security aviation operations, emergency 
                        management and disaster aviation operations, 
                        and law enforcement aviation operations; and
                          ``(v) any other safety or operational 
                        information the Secretary determines to be 
                        necessary to understand the safety impact of 
                        the proposed closure; and
                  ``(B) a process to receive input from the public, 
                impacted air traffic services users, local communities, 
                and the airport operator of the airport where the 
                contract tower proposed to be closed is located.

``Sec. 90704. Availability of safety information to general aviation 
                    operators

  ``In carrying out section 90504, the Corporation shall ensure that 
the safety information referenced in that section is made available to 
general aviation operators.

``Sec. 90705. Special rules and appeals process for air traffic 
                    management procedures, assignments, and 
                    classifications of airspace

  ``(a) In General.--If the Corporation proposes to modify, reduce, 
decommission, or eliminate an air traffic service or air navigation 
facility that would result in the loss of or material reduction in 
access to a public-use airport or adjacent airspace for any class, 
category, or type of aircraft or aircraft operation, as determined by 
the Secretary, the Secretary shall designate an officer to issue a 
notice in the Federal Register and establish a docket that includes--
          ``(1) a copy of the Corporation's proposal;
          ``(2) available data on the usage of the affected air traffic 
        service or air navigation facility;
          ``(3) an assessment of the designated officer on the effects 
        of the proposal; and
          ``(4) an assessment of the designated officer on any proposed 
        action to mitigate the loss of or material reduction in access 
        to the public-use airport or adjacent airspace.
  ``(b) Proceeding.--The designated officer shall provide an 
opportunity for public comment on the proposal for a period of at least 
60 days.
  ``(c) Decision.--Not later than 30 days after the last day of the 
public comment period, the designated officer shall--
          ``(1) determine whether the proposal is in the public 
        interest, including whether any material reduction in access to 
        a public-use airport or adjacent airspace has been mitigated to 
        the maximum extent practicable; and
          ``(2) approve or disapprove the proposal on that basis.
  ``(d) Relationship to Other Requirements.--Notwithstanding section 
90501(c), a proposal described in subsection (a)--
          ``(1) shall be subject to the process established in this 
        section; and
          ``(2) may not be implemented unless approved under this 
        section.
  ``(e) Appeals and Secretarial Review.--
          ``(1) Written petition for review.--A petition for an appeal 
        of a decision of the designated officer under subsection (c) 
        shall be submitted in writing to the Secretary not later than 
        30 days after the date of the decision.
          ``(2) Secretarial review.--The Secretary shall review and 
        make a determination with respect to a timely filed petition 
        under paragraph (1) not later than 30 days after the date of 
        receipt of the petition.
  ``(f) Decisional Standards.--In making a determination under this 
section, neither the Secretary nor the designated officer may consider 
any factor not directly germane to--
          ``(1) the safe operation or navigation of an aircraft; or
          ``(2) the sufficiency of mitigation efforts related to a 
        material reduction in access to a public-use airport or 
        adjacent airspace.
  ``(g) Judicial Review.--
          ``(1) In general.--Any determination made by the Secretary 
        under subsection (e)(2) shall be subject to judicial review 
        pursuant to subsections (a), (b), (d), and (e) of section 
        46110.
          ``(2) Standard of review.--
                  ``(A) Disapprovals.--In the case of a petition filed 
                under section 46110(a) to review a determination of the 
                Secretary that disapproves a proposal, the court shall, 
                without deference to the Secretary's determination, 
                review de novo the record to determine if the 
                Secretary's determination is in the public interest.
                  ``(B) Approvals.--In the case of a petition filed 
                under section 46110(a) to review a determination of the 
                Secretary that approves a proposal, the court may 
                overturn the approval only upon a finding of clear 
                error or an abuse of discretion.

``Sec. 90706. Definitions

  ``In this chapter, the following definitions apply:
          ``(1) Material reduction.--The term `material reduction' 
        means, with respect to access to a public-use airport, 
        including a general aviation or rural airport, a materially 
        diminished ability to safely operate or navigate to or from the 
        airport or adjacent airspace during a time of day, weather 
        condition, or season of the year.
          ``(2) Rural airport.--The term `rural airport' means a 
        public-use airport located in a rural area (as that term is 
        defined in section 520 of the Housing Act of 1949 (42 U.S.C. 
        1490)).

  ``CHAPTER 909--CONTINUITY OF AIR TRAFFIC SERVICES TO DEPARTMENT OF 
                   DEFENSE AND OTHER PUBLIC AGENCIES

``Sec.
``90901. Continuity of air traffic services provided by Department of 
Defense.
``90902. Military and other public aircraft exempt from user fees.
``90903. Air traffic services for Federal agencies.
``90904. Emergency powers of Armed Forces.
``90905. Adherence to international agreements related to operations of 
Armed Forces.
``90906. Primacy of Armed Forces in times of war.
``90907. Cooperation with Department of Defense and other Federal 
agencies after date of transfer.

``Sec. 90901. Continuity of air traffic services provided by Department 
                    of Defense

  ``After the date of transfer, the Department of Defense, as directed 
by the President, is authorized and permitted to provide air traffic 
services within United States airspace and international airspace 
delegated to the United States.

``Sec. 90902. Military and other public aircraft exempt from user fees

  ``The Corporation may not impose charges or fees for operations of 
aircraft owned or operated by the Armed Forces or other aircraft that 
qualify as public aircraft under sections 40102(a) and 40125.

``Sec. 90903. Air traffic services for Federal agencies

  ``Before the date of transfer, the Secretary shall establish 
processes, requirements, procedures, and regulations and take any other 
measure necessary, consistent with the purposes of this subtitle, to 
ensure that all United States Government activities supported by the 
FAA's operation of air traffic services as of the date of transfer 
receive support from the Corporation after the date of transfer and on 
an ongoing basis.

``Sec. 90904. Emergency powers of Armed Forces

  ``The requirements of section 90501 shall not apply to airspace 
actions necessitated by an exercise of authority under section 40106.

``Sec. 90905. Adherence to international agreements related to 
                    operations of Armed Forces

  ``In carrying out section 90503, the Corporation shall ensure that 
the obligations described in that section include obligations related 
to operations of the Armed Forces.

``Sec. 90906. Primacy of Armed Forces in times of war

  ``The President may make temporary transfers to the Secretary of 
Defense pursuant to section 40107(b).

``Sec. 90907. Cooperation with Department of Defense and other Federal 
                    agencies after date of transfer

  ``At least 1 year prior to the date of transfer, the Corporation, the 
Department of Transportation, and each Federal department or agency 
supported by the FAA's operation of air traffic services, including the 
Armed Forces, shall enter into a tripartite agreement to--
          ``(1) ensure cooperation between the Corporation and the 
        department or agency on the delivery of air traffic services;
          ``(2) facilitate the safe provision of air traffic services 
        to the department or agency; and
          ``(3) address how the Corporation and the department or 
        agency will coordinate and communicate on the day-to-day 
        operations of the national airspace system.

                   ``CHAPTER 911--EMPLOYEE MANAGEMENT

``Sec.
``91101. Definitions.
``91102. Employee management and benefits election.
``91103. Labor and employment policy.
``91104. Bargaining units.
``91105. Recognition of labor organizations.
``91106. Collective-bargaining agreements.
``91107. Collective-bargaining dispute resolution.
``91108. Potential and pending grievances, arbitrations, and 
settlements.
``91109. Prohibition on striking and other activities.
``91110. Legal action.

``Sec. 91101. Definitions

  ``In this chapter, the following definitions apply:
          ``(1) Agency.--The term `Agency' means, as the context 
        requires, the Department of Transportation or the FAA.
          ``(2) Air traffic controller.--
                  ``(A) In general.--The term `air traffic controller' 
                means an employee of the Corporation who, in an air 
                traffic control facility or flight service station 
                facility--
                          ``(i) is actively engaged--
                                  ``(I) in the separation and control 
                                of air traffic; or
                                  ``(II) in providing preflight, 
                                inflight, or airport advisory service 
                                to aircraft operators; or
                          ``(ii) is the immediate supervisor of any 
                        employee described in clause (i).
                  ``(B) Limitation.--Notwithstanding subparagraph (A), 
                the definition of `air traffic controller' for purposes 
                of section 8336(e) of chapter 83 of title 5 and section 
                8412(e) of chapter 84 of such title shall mean only 
                employees actively engaged in the separation of air 
                traffic and the immediate supervisors of such 
                employees, as set forth in section 8331(30) of such 
                title, and section 8401(35) of such title.
          ``(3) Authority.--The term `Authority' means the Federal 
        Labor Relations Authority, as described in section 7104(a) of 
        title 5.
          ``(4) Service.--The term `Service' means the Federal 
        Mediation and Conciliation Service established by section 202 
        of the Labor Management Relations Act, 1947 (29 U.S.C. 172).

``Sec. 91102. Employee management and benefits election

  ``(a) Authority of CEO.--
          ``(1) In general.--Except as otherwise provided by law, the 
        CEO shall classify and fix the compensation and benefits of 
        employees in the Corporation.
          ``(2) Negotiations.--In developing, making changes to, and 
        implementing wages, hours, and other terms and conditions of 
        employment, including when establishing the compensation and 
        benefits program under section 90316(c), the Corporation shall 
        negotiate with exclusive representatives recognized under 
        section 91105.
          ``(3) Before date of transfer.--For purposes of paragraph 
        (2), before the date of transfer, the term `exclusive 
        representatives recognized under section 91105' shall refer to 
        labor organizations recognized under section 7111 of title 5 as 
        exclusive representatives of FAA employees.
  ``(b) Former Federal Employees.--
          ``(1) Federal retirement benefits.--
                  ``(A) Election of retirement benefits.--At least 90 
                days before the date of transfer, an employee 
                transferring to the Corporation who will be subject to 
                either the Civil Service Retirement System under 
                chapter 83 of title 5 (in this section referred to as 
                `CSRS') or the Federal Employees Retirement System 
                under chapter 84 of title 5 (in this section referred 
                to as `FERS') on the day immediately preceding the date 
                of transfer shall elect either to--
                          ``(i) retain the employee's coverage under 
                        either CSRS or FERS, as applicable, in lieu of 
                        coverage by the Corporation's employee benefits 
                        system established under section 90316(c); or
                          ``(ii) receive a deferred annuity, lump-sum 
                        benefit, or any other benefit available to the 
                        employee under CSRS or FERS, in the same manner 
                        that would have been available to the employee 
                        if the employee had voluntarily separated from 
                        Federal employment on the day before the date 
                        of transfer.
                  ``(B) Thrift savings plan accounts.--An employee who 
                makes the election under subparagraph (A)(ii) shall 
                have the option to transfer the balance in the 
                employee's Thrift Savings Plan account to the plan 
                under the Corporation's retirement system, consistent 
                with applicable law and the terms of the Corporation's 
                plan.
                  ``(C) Periodic election.--The Corporation shall 
                provide for periodic election seasons during which an 
                employee who transferred to the Corporation on the date 
                of transfer may become eligible for retirement benefits 
                under the Corporation's employee benefits system 
                established under section 90316(c) by making an 
                election under subparagraph (A)(ii).
                  ``(D) Continuity of annuitant benefits.--
                Notwithstanding any other provision of law, any 
                individual who is receiving an annuity under chapter 83 
                or chapter 84 of title 5 may continue to receive such 
                annuity while employed by the Corporation.
                  ``(E) High-3 determination.--With respect to any 
                employee who retains CSRS or FERS coverage pursuant to 
                subparagraph (A), such employee's basic pay while with 
                the Corporation shall be included in any determination 
                of such employee's average pay under section 8331(4) or 
                8401(3), as the case may be, of title 5 when 
                calculating the annuity (if any) of such employee. For 
                purposes of this section, an employee's basic pay shall 
                be defined as such employee's total annual salary or 
                wages from the Corporation, including any location-
                based adjustment.
          ``(2) Payments to civil service retirement and disability 
        fund.--For employees of the Corporation who elect to retain 
        their coverage under either CSRS or FERS pursuant to paragraph 
        (1), the Corporation shall only be required to pay to the Civil 
        Service Retirement and Disability Fund--
                  ``(A) such employee deductions and agency 
                contributions as are required by sections 8334, 8422, 
                and 8423 of title 5; and
                  ``(B) such additional amounts, not to exceed 2 
                percent of the amounts under subparagraph (A), as are 
                determined necessary by the Office of Personnel 
                Management to pay the cost of administering retirement 
                benefits for employees who retire from the Corporation 
                after the date of transfer under either CSRS or FERS, 
                for their survivors, and for survivors of employees of 
                the Corporation who die after the date of transfer 
                (which amounts shall be available to the Office of 
                Personnel Management as provided in section 
                8348(a)(1)(B) of title 5).
          ``(3) Thrift savings fund.--The Corporation shall pay to the 
        Thrift Savings Fund such employee and agency contributions as 
        are required by section 8432 of title 5 for employees who elect 
        to retain their coverage under FERS pursuant to paragraph (1).
          ``(4) Health benefits plan election.--Any employee of the 
        Corporation who was subject to the Federal Employees Health 
        Benefits Program under chapter 89 of title 5 (in this section 
        referred to as `FEHBP') on the day immediately preceding the 
        date of transfer shall have the option to receive health 
        benefits from a health benefit plan established by the 
        Corporation under section 90316(c) or to continue coverage 
        under FEHBP without interruption.
          ``(5) Payments to employees health benefits fund.--For 
        employees of the Corporation who elect to retain their coverage 
        under FEHBP pursuant to paragraph (4), the Corporation shall 
        pay to the Employees Health Benefits Fund--
                  ``(A) such employee deductions and agency 
                contributions as are required by subsections (a) 
                through (f) of section 8906 of title 5; and
                  ``(B) such amounts as are determined necessary by the 
                Office of Personnel Management under paragraph (6) to 
                reimburse the Office of Personnel Management for 
                contributions under section 8906(g)(1) of title 5.
          ``(6) Reimbursement amounts.--The amounts required to be paid 
        by the Corporation under paragraph (5)(B) shall be equal to the 
        amount of Government contributions for retired employees who 
        retire from the Corporation after the date of transfer under 
        either CSRS or FERS, for survivors of such retired employees, 
        and for survivors of employees of the Corporation who die after 
        the date of transfer, with said amounts prorated to reflect 
        only that portion of the total service of such employees and 
        retired persons that was performed for the Corporation after 
        the date of transfer.
          ``(7) Additional benefits.--Subject to the provisions of this 
        chapter, any employee of the Corporation who was subject to the 
        provisions of subchapter I of chapter 85 (concerning 
        unemployment compensation) and chapters 87 (concerning life 
        insurance), 89A (concerning enhanced dental benefits), and 89B 
        (concerning enhanced vision benefits) of title 5 shall have the 
        option to continue coverage under such provisions without 
        interruption in lieu of applicable coverage by the 
        Corporation's employee benefits system established under 
        section 90316(c). The Corporation shall withhold from pay, and 
        shall make contributions, under the provisions of title 5 
        referred to in this subsection at the same rates applicable to 
        agencies of the Federal Government for such employees.
          ``(8) Workers compensation.--Officers and employees of the 
        Corporation shall be covered by, and shall be considered 
        employees for purposes of, subchapter I of chapter 81 of title 
        5 (concerning compensation for work injuries). The Corporation 
        shall make contributions to the Employees' Compensation Fund 
        under the provisions of section 8147 of title 5 at the same 
        rates applicable to agencies of the Federal Government.
          ``(9) Non-foreign area.--To the extent consistent with law, 
        the Non-Foreign Area Retirement Equity Assurance Act of 2009 
        shall apply to officers and employees of the Corporation 
        transferred under section 90316.
          ``(10) Transfer of leave.--Sick and annual leave, credit 
        hours, and compensatory time of officers and employees of the 
        Corporation, whether accrued before or after the date of 
        transfer, shall be obligations of the Corporation under the 
        provisions of this chapter.
          ``(11) Whistleblower protection.--Neither the Corporation, 
        nor any officer or employee of the Corporation, may take any 
        action described in subsection (b)(8), (b)(9), or (b)(13), or 
        the final paragraph of subsection (b), of section 2302 of title 
        5 (relating to whistleblower protection).

``Sec. 91103. Labor and employment policy

  ``(a) Application of Chapter 71 of Title 5.--To the extent not 
inconsistent with this chapter, labor-management relations shall be 
subject to the provisions of chapter 71 of title 5, provided that the 
obligation of the Corporation and an exclusive bargaining 
representative recognized under section 91105 to bargain collectively 
in good faith over conditions of employment shall mean to bargain over 
the same wages, hours, and other terms and conditions of employment as 
are negotiable under section 8(d) of the Act of July 5, 1935, as 
amended (29 U.S.C. 158(d)), and without application of section 
7103(a)(14) of title 5 and section 7117 of title 5, which shall not 
apply.
  ``(b) Applicability.--To the limited extent necessary for the 
implementation of this chapter, the Corporation shall have the rights 
and obligations of an agency under chapter 71 of title 5.
  ``(c) Application of Fair Labor Standards Act.--The provisions of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) shall apply to 
the Corporation and to its officers and employees.
  ``(d) Reporting and Disclosure.--The provisions of the Labor-
Management Reporting and Disclosure Act of 1959 (29 U.S.C. 401 et seq.) 
shall be applicable to labor organizations that have or are seeking to 
attain recognition under section 91105, and to such organizations' 
officers, agents, shop stewards, other representatives, and members.
  ``(e) Right To Collectively Bargain.--Each employee of the 
Corporation shall have the right, freely and without fear of penalty or 
reprisal, to form, join, and assist a labor organization or to refrain 
from any such activity, and each employee shall be protected in the 
exercise of this right. Such right shall include the right to engage in 
collective bargaining with respect to the same wages, hours, and other 
terms and conditions of employment as are negotiable under section 8(d) 
of the Act of July 5, 1935, as amended (29 U.S.C. 158(d)).

``Sec. 91104. Bargaining units

  ``(a) In General.--Pursuant to section 7112 of title 5 and subject to 
the requirements of this chapter, the Authority shall decide in each 
case the unit appropriate for collective bargaining with the 
Corporation.
  ``(b) Previously Certified Units.--Notwithstanding subsection (a), 
the Authority may not adopt, certify, or decide upon bargaining units 
that include employees in bargaining units previously certified by the 
Authority that are smaller in geographic scope than such previously 
certified bargaining units, unless the Authority finds by compelling 
evidence that such previously certified units would not, absent 
modification, remain units appropriate for collective bargaining with 
the Corporation.
  ``(c) Other Units.--
          ``(1) Previous certifications.--Notwithstanding subsection 
        (a) or (b), the Authority shall not recognize or certify any 
        bargaining unit different than the bargaining units previously 
        certified by the Authority prior to the date described in 
        section 91105(g).
          ``(2) Supervisors and management officials.--Notwithstanding 
        section 7135(a)(2) of title 5, a bargaining unit may not 
        include, or be modified to include, any supervisor or 
        management official, as those terms are defined in section 
        7103(a) of title 5.

``Sec. 91105. Recognition of labor organizations

  ``(a) Application of Chapter 71 of Title 5.--To the extent not 
inconsistent with this chapter, section 7111 of title 5 shall apply to 
the recognition and certification of labor organizations for the 
employees of the Corporation and the Corporation shall accord exclusive 
recognition to and bargain collectively with a labor organization when 
the organization has been selected by a majority of the employees in an 
appropriate unit as their representative.
  ``(b) Recognition of Exclusive Representative.--Notwithstanding 
subsection (a), each labor organization that, immediately before the 
date of transfer, was recognized as the exclusive representative for a 
bargaining unit of employees of the Agency shall be deemed to be 
recognized on the date of transfer or thereafter as the exclusive 
representative for those employees of the Corporation in the same or 
similar bargaining unit unless another representative for a bargaining 
unit of employees is certified pursuant to section 7111 of title 5 and 
this section.
  ``(c) Expiration of Term.--Every collective-bargaining agreement or 
arbitration award that applies to an employee of the Agency and that is 
in force immediately before the date of transfer continues in force 
until its term expires. To the extent that the Corporation assumes the 
functions and responsibilities that, prior to the date of transfer, 
were conducted by the Agency, agreements and supplements (including any 
arbitration award, as applicable) covering employees of the Agency that 
are in effect on the date of transfer shall continue to be recognized 
by and binding on the Corporation, the bargaining representative, and 
all covered employees until altered or amended pursuant to law. Any 
agreement, supplement, or arbitration award continued by this section 
is deemed to be an agreement, supplement, or arbitration award binding 
on the Corporation, the bargaining representative, and all covered 
employees for purposes of this chapter and title 5.
  ``(d) Limitation on Application.--Notwithstanding section 91103, 
sections 7106 and 7113 of title 5 shall not apply to this chapter.
  ``(e) Continuation of Bargaining.--If an exclusive representative and 
the Agency are engaged in bargaining (whether concerning a collective-
bargaining agreement, issues related to the transfer of functions and 
responsibilities from the Agency to the Corporation, or otherwise) 
prior to the date of transfer, such bargaining shall continue between 
the exclusive representative and the Corporation, and the Corporation 
shall be bound by any commitments made during bargaining by the Agency.
  ``(f) Statutory Construction.--Nothing in this section may be 
construed to prohibit the waiving of hearings by stipulation for the 
purpose of a consent election in conformity with regulations and rules 
of decision of the Authority.
  ``(g) Limitation.--Notwithstanding any other provision of this 
chapter or any provision of title 5, no bargaining unit or part of a 
bargaining unit consisting of employees of the Corporation represented 
by a labor organization pursuant to subsection (b) may be reviewed, 
rescinded, amended, altered, or varied, other than--
          ``(1) to include in the unit any employees who are not 
        represented by a labor organization, or
          ``(2) to merge bargaining units that are represented by the 
        same labor organization,
before the first day of the last 3 months of the first collective 
agreement entered into after the date of transfer that applies to those 
employees and that has resulted from collective bargaining between such 
labor organization and the Corporation.
  ``(h) Deduction.--
          ``(1) In general.--Notwithstanding section 91103, section 
        7115 of title 5 shall not apply to this chapter.
          ``(2) Dues.--When a labor organization holds exclusive 
        recognition, the Corporation shall deduct the regular and 
        periodic dues, initiation fees, and assessments (not including 
        fines and penalties) of the organization from the pay of all 
        members of the organization in the unit of recognition if the 
        Corporation (or, before the date of transfer, the Agency) has 
        received from each employee, on whose account such deductions 
        are made, a written assignment which shall be irrevocable for a 
        period of not more than 1 year.
          ``(3) Continuation.--Any agreement described in subsection 
        (c) that provides for deduction by the Agency of the regular 
        and periodic dues, initiation fees, and assessments (not 
        including fines and penalties) of the labor organization from 
        the pay of its members shall continue in full force and effect 
        and the obligation for such deductions shall be assumed by the 
        Corporation. No such deduction may be made from the pay of any 
        employee except on the employee's written assignment, which 
        shall be irrevocable for a period of not more than 1 year.

``Sec. 91106. Collective-bargaining agreements

  ``(a) In General.--Except as provided under section 91105(c), 
collective-bargaining agreements between the Corporation and bargaining 
representatives shall be effective for not less than 2 years.
  ``(b) Procedures.--Collective-bargaining agreements between the 
Corporation and bargaining representatives recognized under section 
91105 may include procedures for resolution by the parties of 
grievances and adverse actions arising under the agreement, including 
procedures culminating in binding third-party arbitration, or the 
parties may adopt such procedures by mutual agreement in the event of a 
dispute. Such procedures shall be applicable to disputes arising under 
section 91109.
  ``(c) Limitation on Application.--Notwithstanding section 91103, 
section 7121(c) of title 5 shall not apply to this chapter.
  ``(d) Dispute Resolution Procedures.--The Corporation and bargaining 
representatives recognized under section 91105 may by mutual agreement 
adopt procedures for the resolution of disputes or impasses arising in 
the negotiation of a collective-bargaining agreement.

``Sec. 91107. Collective-bargaining dispute resolution

  ``(a) Resolution of Disputes.--
          ``(1) In general.--If, prior to 90 days after the expiration 
        of the term collective-bargaining agreement or 90 days after 
        the parties begin mid-term negotiations, the Corporation and 
        the exclusive bargaining representative of the employees of the 
        Corporation (in this section referred to collectively as the 
        `parties') do not reach an agreement under sections 7114(a)(1), 
        7114(a)(4), and 7114(b) of title 5 (as such sections apply to 
        the Corporation under this chapter), or section 91106(d) of 
        this chapter, the Corporation and the bargaining representative 
        shall use the mediation services of the 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 this subtitle).
          ``(2) Mediation period.--The mediation period under paragraph 
        (1) may not exceed 60 days unless extended by written agreement 
        of the parties.
  ``(b) Binding Arbitration for Term Bargaining.--
          ``(1) Three member private arbitration board.--If the 
        mediation services of the Service under subsection (a)(1) do 
        not lead to the resolution of issues in controversy arising 
        from the negotiation of a term collective-bargaining agreement, 
        the parties shall submit their issues in controversy to a 
        private arbitration board consisting of 3 members.
          ``(2) Appointment of arbitration board.--
                  ``(A) Preparation of list of arbitrators.--The 
                Director of the Service shall provide for the 
                appointment of the 3 members of an arbitration board 
                by--
                          ``(i) preparing a list of not fewer than 15 
                        names of arbitrators of nationwide reputation 
                        and professional stature with at least 20 years 
                        of experience in labor-management arbitration 
                        and considerable experience in interest 
                        arbitration in major industries; and
                          ``(ii) providing the list to the parties.
                  ``(B) Selection of arbitrators by parties.--Not later 
                than 10 days after receiving a list of names under 
                subparagraph (A), the parties shall each select one 
                arbitrator. The arbitrators selected by the parties do 
                not need to be arbitrators whose names appear on the 
                list.
                  ``(C) Selection of third arbitrator.--Not later than 
                7 days after the date on which the 2 arbitrators are 
                selected by the parties under subparagraph (B), the 2 
                arbitrators, acting jointly, shall select a third 
                person from the list prepared under subparagraph (A).
                  ``(D) Failure to act.--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 prepared under subparagraph (A), beginning 
                with the party chosen on a random basis, until one 
                arbitrator remains.
          ``(3) 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.
          ``(4) Hearings.--The arbitration board shall give the parties 
        a full and fair hearing, including an opportunity to present 
        evidence and witnesses in support of their claims and an 
        opportunity to present their case in person, by counsel, or by 
        other representative as they may elect.
          ``(5) Decisions.--The arbitration board shall render its 
        written decision not later than 90 days after the date of its 
        appointment. Decisions of the arbitration board shall be 
        conclusive and binding upon the parties.
          ``(6) Evidence.--The arbitration board shall consider and 
        afford the proper weight to all of the evidence presented by 
        the parties.
          ``(7) Costs.--The parties shall share costs of the 
        arbitration equally.
  ``(c) Ratification of Agreements.--Upon reaching a voluntary 
agreement or at the conclusion of the binding arbitration under 
subsection (b), the final agreement, except for those matters decided 
by a private arbitration board, shall be--
          ``(1) subject to ratification by the exclusive bargaining 
        representative of the employees, if so requested by the 
        bargaining representative; and
          ``(2) subject to approval by the head of the Corporation in 
        accordance with section 7114(c) of title 5.
  ``(d) Mid-Term Bargaining.--
          ``(1) Preparation of list of arbitrators.--If the mediation 
        services of the Service under subsection (a) do not lead to the 
        resolution of issues in controversy arising from the 
        negotiation of a mid-term collective-bargaining agreement, the 
        Director shall provide the parties a list of not fewer than 10 
        names of arbitrators of nationwide reputation and professional 
        stature with at least 20 years of experience in labor-
        management arbitration and considerable experience in interest 
        arbitration in major industries.
          ``(2) Selection of arbitrator.--The parties shall alternately 
        strike names on the list, beginning with the party chosen on a 
        random basis, until one arbitrator remains.
          ``(3) Decision.--The arbitrator shall hold a hearing, and not 
        later than 90 days after date of the appointment of the 
        arbitrator, issue a written decision resolving the issues in 
        controversy. The decision shall be conclusive and binding upon 
        the parties.
  ``(e) Enforcement.--To enforce this section, either party may bring 
suit in the United States District Court for the District of Columbia, 
which shall hear and resolve the enforcement action on an expedited 
basis.
  ``(f) Application.--Notwithstanding section 91103(a), section 7119 of 
title 5 shall not apply to this chapter.

``Sec. 91108. Potential and pending grievances, arbitrations, and 
                    settlements

  ``(a) In General.--The Corporation is deemed to be the employer 
referred to in any agreement or supplement referred to in section 
91105(c) for the purpose of any arbitration proceeding or arbitration 
award. Any agreement concerning any employee that resolves a potential 
or filed grievance that is binding on the Agency shall, to the extent 
that the employee becomes an employee of the Corporation, become 
binding on the Corporation.
  ``(b) Existing Binding Agreements.--Any agreement or supplement 
referred to in section 91105(c) is binding on--
          ``(1) the Corporation as if it were the employer referred to 
        in such agreement or supplement;
          ``(2) the bargaining representative that is a party to the 
        agreement or supplement; and
          ``(3) the employees of the Corporation in the bargaining unit 
        with respect to whom that bargaining representative has been 
        certified.
  ``(c) Jurisdiction.--Subject to section 91103, the Authority shall 
retain jurisdiction over all matters arising before the date of 
transfer in relation to the interpretation and application of any 
agreement or supplement referred to in section 91105(c), whether or not 
such agreement or supplement has expired.
  ``(d) Existing Grievances or Arbitrations.--Grievances or 
arbitrations that were filed or commenced before the date of transfer 
with respect to any agreement or supplement referred to in section 
91105(c) shall be continued as though the Corporation were the employer 
referred to in the agreement or supplement.
  ``(e) Proceedings After Date of Transfer.--Where events giving rise 
to a grievance under any agreement or supplement referred to in section 
91105(c) occurred before the date of transfer but the proceedings had 
not commenced before that date, the proceedings may be commenced on or 
after the date of transfer in accordance with such agreement or 
supplement as though the Corporation were the employer referred to in 
such agreement or supplement.
  ``(f) Actions Deemed To Be by Corporation.--For the purposes of 
subsections (c), (d), and (e), anything done, or not done, by the 
Agency is deemed to have been done, or to have not been done, as the 
case may be, by the Corporation.
  ``(g) Exceptions to Arbitral Awards.--
          ``(1) In general.--Notwithstanding section 91103, section 
        7122 of title 5 shall not apply to this chapter.
          ``(2) Actions to vacate.--Either party to grievance 
        arbitration under this chapter may file an action pursuant to 
        section 91110(a) to enforce the arbitration process or to 
        vacate or enforce an arbitration award. An arbitration award 
        may only be vacated on the grounds, and pursuant to the 
        standards, that would be applicable to an action to vacate an 
        arbitration award brought in the Federal courts under section 
        301 of the Labor Management Relations Act, 1947 (29 U.S.C. 
        185).

``Sec. 91109. Prohibition on striking and other activities

  ``(a) In General.--Employees of the Corporation are prohibited from--
          ``(1) participating in a strike, work stoppage, or slowdown 
        against the Corporation; or
          ``(2) picketing the Corporation in a labor-management dispute 
        if such picketing interferes with the Corporation's operations.
  ``(b) Termination.--An employee who participates in an activity 
described in subsection (a) shall be terminated from employment with 
the Corporation.

``Sec. 91110. Legal action

  ``(a) In General.--Consistent with the requirements of section 90315, 
actions to enforce the arbitration process or vacate or enforce an 
arbitral award under section 91108(g)(2) between the Corporation and a 
labor organization representing Corporation employees, or between any 
such labor organizations, may be brought in any district court of the 
United States having jurisdiction of the parties, without respect to 
the amount in controversy.
  ``(b) Authorized Acts.--A labor organization recognized under section 
91105 and the Corporation shall be bound by the authorized acts of 
their agents. Any labor organization may sue or be sued as an entity 
and on behalf of the employees whom it represents in the courts of the 
United States. Any money judgment against a labor organization in a 
district court of the United States shall be enforceable only against 
the organization as an entity and against its assets, and shall not be 
enforceable against any individual member or his assets.
  ``(c) Jurisdiction.--Under this subtitle, for the purposes of actions 
and proceedings by or against labor organizations in the district 
courts of the United States, district courts shall be deemed to have 
jurisdiction of a labor organization--
          ``(1) in the district in which such organization maintains 
        its principal offices; or
          ``(2) in any district in which its duly authorized officers 
        or agents are engaged in representing or acting for employee 
        members.
  ``(d) Summons or Subpoena.--The service of summons, subpoena, or 
other legal process of any court of the United States upon an officer 
or agent of a labor organization, in his capacity as such, shall 
constitute service upon the labor organization.

                      ``CHAPTER 913--OTHER MATTERS

``Sec.
``91301. Termination of Government functions.
``91302. Savings provisions.

``Sec. 91301. Termination of Government functions

  ``Except as otherwise provided in this subtitle, whenever any 
function vested by law in the Secretary, Administrator, Department of 
Transportation, or FAA has been transferred to the Corporation pursuant 
to this subtitle, it shall no longer be a function of the Government.

``Sec. 91302. Savings provisions

  ``(a) Completed Administrative Actions.--
          ``(1) In general.--Completed administrative actions of the 
        Department of Transportation or the FAA shall not be affected 
        by the enactment of this subtitle, but shall continue in effect 
        according to their terms until amended, modified, superseded, 
        terminated, set aside, or revoked in accordance with law.
          ``(2) Completed administrative action defined.--In paragraph 
        (1), the term `completed administrative action' includes 
        orders, determinations, rules, regulations, personnel actions, 
        permits, agreements, grants, contracts, certificates, licenses, 
        registrations, and privileges.
  ``(b) Continued Effectiveness of Pending Actions.--
          ``(1) Pending actions and proceedings.--The provisions of 
        this subtitle shall not affect any proceedings of the 
        Department of Transportation or the FAA pending on the date of 
        transfer, including--
                  ``(A) notices of proposed rulemaking related to 
                activities of the FAA, without regard to whether the 
                activities are transferred to the Corporation; and
                  ``(B) an application for a license, a permit, a 
                certificate, or financial assistance pending on the 
                date of transfer before the Department of 
                Transportation or the FAA, or any officer thereof, with 
                respect to activities of the Department or the FAA, 
                without regard to whether the activities are 
                transferred to the Corporation.
          ``(2) Effect of orders.--Orders issued in any proceedings 
        referred to in paragraph (1) shall continue in effect until 
        modified, terminated, superseded, or revoked in accordance with 
        law. Nothing in this subsection prohibits the discontinuance or 
        modification of any such proceeding under the same terms and 
        conditions and to the same extent that such proceeding could 
        have been discontinued or modified if this subtitle had not 
        been enacted.
  ``(c) Continued Effectiveness of Administrative and Judicial 
Actions.--No causes of action or actions by or against the Department 
of Transportation or the FAA arising from acts or omissions occurring 
before the date of transfer shall abate by reason of the enactment of 
this subtitle.
  ``(d) Substitution or Addition of Parties to Judicial Actions.--
Except as provided by subsection (e)(2), if, on the date of transfer, 
the Department of Transportation or the FAA, or any officer thereof in 
the officer's capacity, is a party to an action and, under this 
subtitle, the performance of that activity of the Department, FAA, or 
officer is transferred to the Corporation, such action shall be 
continued with the CEO substituted or added as a party.
  ``(e) Air Traffic Services Liabilities and Obligations.--
          ``(1) Assumption of obligations.--Except as provided in 
        paragraph (2), the Corporation shall assume--
                  ``(A) all obligations (tangible and incorporeal, 
                present, and executory) associated with the air traffic 
                services transferred under this subtitle on the date of 
                transfer, including leases, permits, licenses, 
                contracts, agreements, accounts receivable, and 
                accounts payable; and
                  ``(B) all claims and liabilities associated with the 
                air traffic services transferred under this subtitle 
                pending on the date of transfer.
          ``(2) Claims and actions that remain liabilities of united 
        states.--
                  ``(A) Claims and actions arising in tort.--All claims 
                and actions arising in tort pending on the date of 
                transfer and arising out of the alleged acts or 
                omissions of employees of the FAA who transfer to the 
                Corporation shall remain liabilities of the United 
                States.
                  ``(B) Contingent liabilities.--All contingent 
                liabilities existing on the date of transfer shall 
                remain with the United States, including (without 
                limitation) environmental and intellectual property 
                infringement claims.
                  ``(C) Other claims and liabilities.--All other claims 
                and liabilities arising out of the alleged acts or 
                omissions of the United States before the date of 
                transfer (including those arising under an agreement 
                referred to in section 91105(c)) whose remedy is 
                financial or monetary in nature shall remain 
                liabilities of the United States.
                  ``(D) Access of federal representatives to employees 
                and records.--The Secretary shall ensure that, before 
                the date of transfer, the Corporation has agreed to 
                allow representatives of the Secretary and the Attorney 
                General such access as they may require to employees 
                and records of the Corporation for all purposes 
                relating to the handling of such claims under this 
                paragraph.

``CHAPTER 915--CONGRESSIONAL OVERSIGHT OF AIR TRAFFIC SERVICES PROVIDER

``Sec.
``91501. Inspector General reports to Congress on transition.
``91502. State of air traffic services.
``91503. Submission of annual financial report.
``91504. Submission of strategic plan.
``91505. Submission of annual action plan.

``Sec. 91501. Inspector General reports to Congress on transition

  ``(a) In General.--Before the date of transfer, the Inspector General 
of the Department of Transportation shall submit regular reports to 
Congress on the progress of the preparation of the Department of 
Transportation and of the Corporation for the transfer of operational 
control of air traffic services under this subtitle.
  ``(b) Timing.--The reports described in subsection (a) shall be 
submitted, at a minimum, on a quarterly basis until the date of 
transfer.
  ``(c) Sunset.--This section shall expire on the date of transfer.
  ``(d) Statutory Construction.--Nothing in this section may be 
construed to limit the authority of the Inspector General of the 
Department of Transportation to conduct oversight of the Department of 
Transportation's interactions with the Corporation after the date of 
transfer.

``Sec. 91502. State of air traffic services

  ``(a) Report.--Not later than 2 years after the date of transfer, and 
on or before March 31 of every second year beginning thereafter--
          ``(1) the Corporation shall submit to the Secretary a report 
        on the state of air traffic services; and
          ``(2) the Secretary shall submit the report to Congress.
  ``(b) Contents.--The report shall include, as appropriate, 
information on--
          ``(1) access to airports and services for all users, 
        including access with respect to rural areas;
          ``(2) charges and fees, safety, and areas in which the 
        Corporation has identified efficiencies in the system, 
        including staffing and facilities realignment or consolidation;
          ``(3) the safe, fair, and timely provision of air traffic 
        services by the Corporation;
          ``(4) the sound operation of the Corporation and the impact 
        of any activities of the Corporation on United States airspace;
          ``(5) the cooperation and interaction of the Corporation with 
        the Department of Defense, the Department of Transportation, 
        the FAA, and other Federal departments and agencies, including 
        any agreements between the Corporation and those departments 
        and agencies;
          ``(6) compliance of the Corporation with United States 
        obligations under international treaties and agreements;
          ``(7) compliance of the Corporation with Federal safety, 
        environmental, corporate, and tax laws and regulations;
          ``(8) compliance of the Corporation with Federal laws related 
        to employees of the Corporation;
          ``(9) follow-up on Inspector General and Government 
        Accountability Office audits, investigations, and reports 
        involving the Corporation, including any recommendations 
        included in such reports;
          ``(10) compliance of the Corporation with other Federal 
        requirements, including requirements relating to public 
        disclosure, publication of fees, annual reporting, and 
        establishment of the Advisory Board and other committees;
          ``(11) actions and activities of the CEO and Board and their 
        adherence to their duties and responsibilities;
          ``(12) compliance of the Corporation with requirements 
        related to rural, remote, and small community air traffic 
        services;
          ``(13) compliance of the Corporation with requirements 
        related to claims of incorrect fees and resolution of fee 
        disputes;
          ``(14) compliance of the Corporation with requirements to 
        report safety violations to the FAA, cooperate with FAA 
        investigations, and assist in FAA enforcement actions;
          ``(15) actions in times of emergencies and times of war;
          ``(16) progress made by the Corporation in implementing 
        system modernization efforts and ongoing capital investments, 
        plans of the Corporation for next steps in implementing such 
        efforts and investments, current efficiencies and benefits of 
        previously implemented systems improvements, and current needs 
        for improvement; and
          ``(17) such other matters as the Secretary, in consultation 
        with the Administrator, determines appropriate.

``Sec. 91503. Submission of annual financial report

  ``(a) Annual Financial Report.--
          ``(1) In general.--Not later than 1 year after the date of 
        transfer, and annually thereafter, the Corporation shall 
        publish a report on the activities of the Corporation during 
        the prior year.
          ``(2) Contents; availability.--The annual report shall 
        contain financial and operational performance information 
        regarding the Corporation, as well as information on the 
        compensation (including bonuses and other financial incentives) 
        of each Director, the CEO, and officers of the Corporation, and 
        shall be made publicly available.
          ``(3) Propriety information.--The Corporation shall ensure 
        that any propriety information that may be contained in the 
        annual report is not made public.
  ``(b) Submission.--Each year, on the date the annual report required 
pursuant to subsection (a) is published--
          ``(1) the Corporation shall submit the report to the 
        Secretary; and
          ``(2) the Secretary shall submit the report to Congress.

``Sec. 91504. Submission of strategic plan

  ``(a) Submission of Strategic Plan.--Not later than 15 days after the 
initial strategic plan is approved by the Board pursuant to section 
90308(c)--
          ``(1) the Corporation shall submit the strategic plan to the 
        Secretary; and
          ``(2) the Secretary shall submit the strategic plan to 
        Congress.
  ``(b) Updates to Strategic Plan.--Not later than 15 days after an 
update to the strategic plan is approved by the Board pursuant to 
section 90308(c)--
          ``(1) the Corporation shall submit the updated strategic plan 
        to the Secretary; and
          ``(2) the Secretary shall submit the updated strategic plan 
        to Congress.

``Sec. 91505. Submission of annual action plan

  ``(a) In General.--The Corporation shall develop an annual report on 
the goals of the Corporation for the following year.
  ``(b) Contents.--The report shall contain goals for the Corporation 
to meet that are specific, tangible, and actionable, in order to 
expedite improvements to, and maintain the integrity of, air traffic 
services provided by the Corporation.
  ``(c) Submission.--Not later than 1 year after the date of transfer, 
and annually thereafter--
          ``(1) the Corporation shall submit the report to the 
        Secretary; and
          ``(2) the Secretary shall submit the report to Congress.
  ``(d) Public Availability.--The Corporation shall publish, and make 
available to the public, each report submitted to the Secretary under 
subsection (c).
  ``(e) Proprietary Information.--In carrying out this section, the 
Corporation may take necessary actions to prevent the public disclosure 
of proprietary information.''.
  (b) Analysis for Title 49.--The analysis for title 49, United States 
Code, is amended by adding at the end the following:

``XI. American Air Navigation Services Corporation..........   90101''.

            Subtitle B--Amendments to Federal Aviation Laws

SEC. 221. DEFINITIONS.

  Section 40102(a) of title 49, United States Code, is amended by 
adding at the end the following:
          ``(48) `American Air Navigation Services Corporation' means 
        the American Air Navigation Services Corporation established by 
        subtitle XI.''.

SEC. 222. SUNSET OF FAA AIR TRAFFIC ENTITIES AND OFFICERS.

  (a) Air Traffic Services Committee.--Section 106(p) of title 49, 
United States Code, is amended--
          (1) in paragraph (7) by adding at the end the following:
                  ``(I) Sunset.--The Committee shall terminate and this 
                paragraph shall cease to be effective beginning on the 
                date of transfer (as defined in section 90101(a)).''; 
                and
          (2) by adding at the end the following:
          ``(9) Sunset of air traffic advisory role.--Beginning on the 
        date of transfer (as defined in section 90101(a)), the Council 
        shall not develop or submit comments, recommended 
        modifications, or dissenting views directly regarding the 
        American Air Navigation Services Corporation or air traffic 
        services.''.
  (b) Chief Operating Officer.--Section 106(r) of title 49, United 
States Code, is amended by adding at the end the following:
          ``(6) Sunset.--The position of Chief Operating Officer shall 
        terminate and this subsection shall cease to be effective 
        beginning on the date of transfer (as defined in section 
        90101(a)).''.
  (c) Chief NextGen Officer.--Section 106(s) of title 49, United States 
Code, is amended by adding at the end the following:
          ``(8) Sunset.--The position of Chief NextGen Officer shall 
        terminate and this subsection shall cease to be effective 
        beginning on the date of transfer (as defined in section 
        90101(a)).''.

SEC. 223. ROLE OF ADMINISTRATOR.

  Section 40103(b) of title 49, United States Code, is amended--
          (1) in paragraph (1) by striking ``The Administrator'' each 
        place it appears and inserting ``Before the date of transfer 
        (as defined in section 90101(a)), the Administrator'';
          (2) by striking paragraph (2) and inserting the following:
  ``(2) The Administrator shall--
          ``(A) before the date of transfer (as defined in section 
        90101(a)), prescribe air traffic regulations on the flight of 
        aircraft (including regulations on safe altitudes) for--
                  ``(i) navigating, protecting, and identifying 
                aircraft;
                  ``(ii) protecting individuals and property on the 
                ground;
                  ``(iii) using the navigable airspace efficiently; and
                  ``(iv) preventing collisions between aircraft, 
                between aircraft and land or water vehicles, and 
                between aircraft and airborne objects; and
          ``(B) on and after the date of transfer (as defined in 
        section 90101(a)), prescribe safety regulations on the flight 
        of aircraft (including regulations on safe altitudes) for--
                  ``(i) navigating, protecting, and identifying 
                aircraft;
                  ``(ii) protecting individuals and property on the 
                ground;
                  ``(iii) ensuring equitable access to and use of 
                airspace; and
                  ``(iv) preventing collisions between aircraft, 
                between aircraft and land or water vehicles, and 
                between aircraft and airborne objects.''; and
          (3) in paragraph (3) by striking ``Administrator'' each place 
        it appears and inserting ``Secretary''.

SEC. 224. EMERGENCY POWERS.

  Section 40106(a) of title 49, United States Code, is amended--
          (1) in the matter preceding paragraph (1) by striking ``air 
        traffic'';
          (2) in paragraph (1) by inserting ``and the American Air 
        Navigation Services Corporation'' after ``Administration''; and
          (3) in paragraph (2) by inserting ``and the American Air 
        Navigation Services Corporation'' after ``Administrator''.

SEC. 225. PRESIDENTIAL TRANSFERS IN TIME OF WAR.

  Section 40107(b) of title 49, United States Code, is amended to read 
as follows:
  ``(b) During War.--If war occurs, the President by Executive order 
may temporarily transfer to the Secretary of Defense a duty, power, 
activity, or facility of the Administrator or the American Air 
Navigation Services Corporation. In making the transfer, the President 
may temporarily transfer records, property, officers, and employees of 
the Administration or the American Air Navigation Services Corporation 
to the Department of Defense.''.

SEC. 226. AIRWAY CAPITAL INVESTMENT PLAN BEFORE DATE OF TRANSFER.

  Section 44501(b) of title 49, United States Code, is amended--
          (1) in the first sentence by striking ``The Administrator'' 
        and inserting ``Before the date of transfer (as defined in 
        section 90101(a)), the Administrator'';
          (2) in paragraph (4)(B) by striking ``and'' at the end;
          (3) in paragraph (5) by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following:
          ``(6) for fiscal years 2017 through 2020, a process under 
        which the Administrator shall continue to comply with the 
        requirements of this section before the date of transfer (as 
        defined in section 90101(a)).''.

SEC. 227. AVIATION FACILITIES BEFORE DATE OF TRANSFER.

  (a) General Authority.--Section 44502(a) of title 49, United States 
Code, is amended--
          (1) in paragraph (1) by striking ``The Administrator of the 
        Federal Aviation Administration may'' and inserting ``Before 
        the date of transfer (as defined in section 90101(a)), the 
        Secretary of Transportation may'';
          (2) in paragraph (2) by striking ``The cost'' and inserting 
        ``Before the date of transfer (as defined in section 90101(a)), 
        the cost'';
          (3) in paragraph (3) by striking ``The Secretary'' and 
        inserting ``Before the date of transfer (as defined in section 
        90101(a)), the Secretary'';
          (4) by striking paragraph (4);
          (5) by redesignating paragraph (5) as paragraph (4); and
          (6) in paragraph (4) (as so redesignated) by striking ``The 
        Administrator'' and inserting ``Before the date of transfer (as 
        defined in section 90101(a)), the Secretary of 
        Transportation''.
  (b) Certification of Necessity.--Section 44502(b) of title 49, United 
States Code, is amended--
          (1) by striking ``Except'' and inserting ``Before the date of 
        transfer (as defined in section 90101(a)), except''; and
          (2) by striking ``the Administrator of the Federal Aviation 
        Administration'' and inserting ``the Secretary of 
        Transportation''.
  (c) Ensuring Conformity With Plans and Policies.--Section 44502(c) of 
title 49, United States Code, is amended--
          (1) in paragraph (1)--
                  (A) by striking ``Administrator of the Federal 
                Aviation Administration'' the second, third, and fourth 
                places it appears and inserting ``Secretary of 
                Transportation'';
                  (B) by striking ``by the Administrator of the Federal 
                Aviation Administration under section 40103(b)(1) of 
                this title''; and
                  (C) by striking ``Congress'' and inserting 
                ``Congress, the American Air Navigation Services 
                Corporation,''; and
          (2) in paragraph (2)--
                  (A) by striking ``Administrator of the Federal 
                Aviation Administration'' and inserting ``Secretary of 
                Transportation''; and
                  (B) by striking ``that the Administrator'' and 
                inserting ``that the Secretary''.
  (d) Transfers of Instrument Landing Systems.--Section 44502(e) of 
title 49, United States Code, is amended by striking ``An airport may 
transfer'' and inserting ``Before the date of transfer (as defined in 
section 90101(a)), an airport may transfer''.

SEC. 228. JUDICIAL REVIEW.

  Section 46110(a) of title 49, United States Code, is amended by 
striking ``or subsection (l) or (s) of section 114'' and inserting 
``subsection (l) or (s) of section 114, or section 90501''.

SEC. 229. CIVIL PENALTIES.

  Section 46301(a)(1)(A) of title 49, United States Code, is amended by 
striking ``or section 47133'' and inserting ``section 47133, or section 
90501(b)(3)''.

                       Subtitle C--Other Matters

SEC. 241. USE OF FEDERAL TECHNICAL FACILITIES.

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall make Administration technical facilities available 
to the American Air Navigation Services Corporation for air traffic 
control research and development projects.
  (b) Cooperative Agreement.--
          (1) In general.--To ensure the safe transition of air traffic 
        services, not later than 180 days prior to the date of transfer 
        (as defined in section 90101(a) of title 49, United States 
        Code, as added by this Act), the Administrator shall enter into 
        an agreement with the American Air Navigation Services 
        Corporation, for a period of not less than 5 years, concerning 
        services that could be provided at the Federal Aviation 
        Administration technical center, including the integrated air 
        traffic control laboratories.
          (2) Services defined.--In this subsection, the term 
        ``services'' includes--
                  (A) activities associated with the approval of a 
                safety management system under chapter 905 of title 49, 
                United States Code, as added by this Act; and
                  (B) any other activity the Secretary considers 
                necessary to promote safety in air traffic services, 
                including verification of the safety functions of new 
                air traffic control technologies.
  (c) Statutory Construction.--Nothing in this title, or the amendments 
made by this title, may be construed to limit the safety regulatory 
authority of the Department of Transportation, including the research 
and development functions of the Department.
  (d) Safety.--Before the date of transfer (as defined by section 
90101(a) of title 49, United States Code, as added by this Act) all 
operational testing and integration of air traffic control systems 
conducted by the Administration shall continue.

SEC. 242. ENSURING PROGRESS ON NEXTGEN PRIORITIES BEFORE DATE OF 
                    TRANSFER.

  (a) Near-Term NextGen Priorities.--Prior to the date of transfer (as 
defined by section 90101(a) of title 49, United States Code, as added 
by this Act), the Administrator of the Federal Aviation Administration, 
in consultation with the NextGen Advisory Committee, shall prioritize 
the implementation of the following programs:
          (1) Multiple runway operations.
          (2) Performance-based navigation.
          (3) Surface operations and data sharing.
          (4) Data communications.
  (b) Near-Term NextGen Performance Goals.--
          (1) In general.--The Administrator, in consultation with the 
        NextGen Advisory Committee, shall establish quantifiable near-
        term NextGen performance goals for each of the programs 
        prioritized under subsection (a).
          (2) Tracking.--The Administrator shall track the performance 
        goals in a publicly available and transparent manner.
          (3) Measuring benefits.--The Administrator shall establish 
        the performance goals in a manner that allows Congress, 
        stakeholders, and the public to clearly measure the delivery of 
        NextGen benefits between 2018 and 2020, including with respect 
        to--
                  (A) increasing safety;
                  (B) reducing aviation's impact on the environment;
                  (C) enhancing controller productivity; and
                  (D) increasing predictability, airspace capacity, and 
                efficiency.
  (c) NextGen Metrics Report.--Section 106(s)(5) of title 49, United 
States Code, is amended by adding at the end the following:
                  ``(I) Developing, as part of the annual report 
                required under paragraph (4), a description of the 
                progress made in meeting the near-term NextGen 
                performance goals required pursuant to section 242 of 
                the 21st Century AIRR Act and delivering near-term 
                NextGen benefits.''.
  (d) Chief NextGen Officer Responsibility for Meeting Near-Term 
NextGen Goals.--Section 106(s)(3) of title 49, United States Code, is 
amended by adding at the end the following: ``In evaluating the 
performance of the Chief NextGen Officer, the Administrator shall 
consider the progress made in meeting the near-term NextGen performance 
goals required pursuant to section 242 of the 21st Century AIRR Act and 
delivering near-term NextGen benefits.''.

SEC. 243. SEVERABILITY.

  If a provision of this title (including any amendment made by this 
title) or its application to any person or circumstance is held 
invalid, neither the remainder of this title nor the application of the 
provision to other persons or circumstances shall be affected.

SEC. 244. PROHIBITION ON RECEIPT OF FEDERAL FUNDS.

  Notwithstanding any other provision of law, the Corporation 
established under section 90301 of title 49, United States Code, as 
added by this Act, may not accept or receive any funds from the 
uncommitted balance of the Airport and Airway Trust Fund established 
under section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502).

               TITLE III--FAA SAFETY CERTIFICATION REFORM

                     Subtitle A--General Provisions

SEC. 301. DEFINITIONS.

  In this title, the following definitions apply:
          (1) FAA.--The term ``FAA'' means the Federal Aviation 
        Administration.
          (2) Safety oversight and certification advisory committee.--
        The term ``Safety Oversight and Certification Advisory 
        Committee'' means the Safety Oversight and Certification 
        Advisory Committee established under section 302.
          (3) Systems safety approach.--The term ``systems safety 
        approach'' means the application of specialized technical and 
        managerial skills to the systematic, forward-looking 
        identification and control of hazards throughout the lifecycle 
        of a project, program, or activity.

SEC. 302. SAFETY OVERSIGHT AND CERTIFICATION ADVISORY COMMITTEE.

  (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Secretary of Transportation shall establish a Safety 
Oversight and Certification Advisory Committee (in this section 
referred to as the ``Advisory Committee'').
  (b) Duties.--The Advisory Committee shall provide advice to the 
Secretary on policy-level issues facing the aviation community that are 
related to FAA certification and safety oversight programs and 
activities, including, at a minimum, the following:
          (1) Aircraft and flight standards certification processes, 
        including efforts to streamline those processes.
          (2) Implementation and oversight of safety management 
        systems.
          (3) Risk-based oversight efforts.
          (4) Utilization of delegation and designation authorities.
          (5) Regulatory interpretation standardization efforts.
          (6) Training programs.
          (7) Expediting the rulemaking process and giving priority to 
        rules related to safety.
  (c) Functions.--The Advisory Committee shall carry out the following 
functions (as the functions relate to FAA certification and safety 
oversight programs and activities):
          (1) Foster industry collaboration in an open and transparent 
        manner.
          (2) Consult with, and ensure participation by--
                  (A) the private sector, including representatives 
                of--
                          (i) general aviation;
                          (ii) commercial aviation;
                          (iii) aviation labor;
                          (iv) aviation maintenance;
                          (v) aviation, aerospace, and avionics 
                        manufacturing;
                          (vi) unmanned aircraft systems operators and 
                        manufacturers; and
                          (vii) the commercial space transportation 
                        industry;
                  (B) members of the public; and
                  (C) other interested parties.
          (3) Establish consensus national goals, strategic objectives, 
        and priorities for the most efficient, streamlined, and cost-
        effective certification and oversight processes in order to 
        maintain the safety of the aviation system and, at the same 
        time, allow the FAA to meet future needs and ensure that 
        aviation stakeholders remain competitive in the global 
        marketplace.
          (4) Provide policy guidance for the FAA's certification and 
        safety oversight efforts.
          (5) Provide ongoing policy reviews of the FAA's certification 
        and safety oversight efforts.
          (6) Make appropriate legislative, regulatory, and guidance 
        recommendations for the air transportation system and the 
        aviation safety regulatory environment.
          (7) Establish performance objectives for the FAA and 
        industry.
          (8) Establish performance metrics and goals for the FAA and 
        the regulated aviation industry to be tracked and reviewed as 
        streamlining and certification reform and regulation 
        standardization efforts progress.
          (9) Provide a venue for tracking progress toward national 
        goals and sustaining joint commitments.
          (10) Develop recruiting, hiring, training, and continuing 
        education objectives for FAA aviation safety engineers and 
        aviation safety inspectors.
          (11) Provide advice and recommendations to the FAA on how to 
        prioritize safety rulemaking projects.
          (12) Improve the development of FAA regulations by providing 
        information, advice, and recommendations related to aviation 
        issues.
          (13) Facilitate the validation of United States products 
        abroad.
  (d) Membership.--
          (1) In general.--The Advisory Committee shall be composed of 
        the following members:
                  (A) The Administrator of the FAA (or the 
                Administrator's designee).
                  (B) Individuals appointed by the Secretary to 
                represent the following interests:
                          (i) Aircraft and engine manufacturers.
                          (ii) Avionics and equipment manufacturers.
                          (iii) Labor organizations, including 
                        collective bargaining representatives of FAA 
                        aviation safety inspectors and aviation safety 
                        engineers.
                          (iv) General aviation operators.
                          (v) Air carriers.
                          (vi) Business aviation operators.
                          (vii) Unmanned aircraft systems manufacturers 
                        and operators.
                          (viii) Aviation safety management expertise.
                          (ix) Aviation maintenance.
          (2) Nonvoting members.--
                  (A) In general.--In addition to the members appointed 
                under paragraph (1), the Advisory Committee shall be 
                composed of nonvoting members appointed by the 
                Secretary from among individuals representing FAA 
                safety oversight program offices.
                  (B) Duties.--The nonvoting members shall--
                          (i) take part in deliberations of the 
                        Advisory Committee; and
                          (ii) provide input with respect to any final 
                        reports or recommendations of the Advisory 
                        Committee.
                  (C) Limitation.--The nonvoting members may not 
                represent any stakeholder interest other than FAA 
                safety oversight program offices.
          (3) Terms.--Each member and nonvoting member of the Advisory 
        Committee appointed by the Secretary shall be appointed for a 
        term of 2 years.
          (4) Committee characteristics.--The Advisory Committee shall 
        have the following characteristics:
                  (A) An executive-level membership, with members who 
                can represent and enter into commitments for their 
                organizations.
                  (B) The ability to obtain necessary information from 
                experts in the aviation and aerospace communities.
                  (C) A membership size that enables the Committee to 
                have substantive discussions and reach consensus on 
                issues in a timely manner.
                  (D) Appropriate expertise, including expertise in 
                certification and risked-based safety oversight 
                processes, operations, policy, technology, labor 
                relations, training, and finance.
          (5) Limitation on statutory construction.--Public Law 104-65 
        (2 U.S.C. 1601 et seq.) may not be construed to prohibit or 
        otherwise limit the appointment of any individual as a member 
        of the Advisory Committee.
  (e) Chairperson.--
          (1) In general.--The Chairperson of the Advisory Committee 
        shall be appointed by the Secretary from among those members of 
        the Advisory Committee that are executive-level members of the 
        aviation industry.
          (2) Term.--Each member appointed under paragraph (1) shall 
        serve a term of 1 year as Chairperson.
  (f) Meetings.--
          (1) Frequency.--The Advisory Committee shall meet at least 
        twice each year at the call of the Chairperson.
          (2) Public attendance.--The meetings of the Advisory 
        Committee shall be open to the public.
  (g) Special Committees.--
          (1) Establishment.--The Advisory Committee may establish 
        special committees composed of private sector representatives, 
        members of the public, labor representatives, and other 
        interested parties in complying with consultation and 
        participation requirements under this section.
          (2) Rulemaking advice.--A special committee established by 
        the Advisory Committee may--
                  (A) provide rulemaking advice and recommendations to 
                the Administrator with respect to aviation-related 
                issues;
                  (B) afford the FAA additional opportunities to obtain 
                firsthand information and insight from those parties 
                that are most affected by existing and proposed 
                regulations; and
                  (C) expedite the development, revision, or 
                elimination of rules without circumventing public 
                rulemaking processes and procedures.
          (3) Applicable law.--Public Law 92-463 shall not apply to a 
        special committee established by the Advisory Committee.
  (h) Sunset.--The Advisory Committee shall terminate on the last day 
of the 6-year period beginning on the date of the initial appointment 
of the members of the Advisory Committee.
  (i) Termination of Air Traffic Procedures Advisory Committee.--The 
Air Traffic Procedures Advisory Committee established by the FAA shall 
terminate on the date of the initial appointment of the members of the 
Advisory Committee.

               Subtitle B--Aircraft Certification Reform

SEC. 311. AIRCRAFT CERTIFICATION PERFORMANCE OBJECTIVES AND METRICS.

  (a) In General.--Not later than 120 days after the date on which the 
Safety Oversight and Certification Advisory Committee is established 
under section 302, the Administrator of the FAA shall establish 
performance objectives and apply and track metrics for the FAA and the 
aviation industry relating to aircraft certification in accordance with 
this section.
  (b) Collaboration.--The Administrator shall carry out this section in 
collaboration with the Safety Oversight and Certification Advisory 
Committee.
  (c) Performance Objectives.--In carrying out subsection (a), the 
Administrator shall establish performance objectives for the FAA and 
the aviation industry to ensure that, with respect to aircraft 
certification, progress is made toward, at a minimum--
          (1) eliminating certification delays and improving cycle 
        times;
          (2) increasing accountability for both FAA and industry 
        entities;
          (3) achieving full utilization of FAA delegation and 
        designation authorities;
          (4) fully implementing risk management principles and a 
        systems safety approach;
          (5) reducing duplication of effort;
          (6) increasing transparency;
          (7) establishing and providing training, including recurrent 
        training, in auditing and a systems safety approach to 
        certification oversight;
          (8) improving the process for approving or accepting 
        certification actions between the FAA and bilateral partners;
          (9) maintaining and improving safety;
          (10) streamlining the hiring process for--
                  (A) qualified systems safety engineers to support FAA 
                efforts to implement a systems safety approach; and
                  (B) qualified systems engineers to guide the 
                engineering of complex systems within the FAA; and
          (11) maintaining the leadership of the United States in 
        international aviation and aerospace.
  (d) Performance Metrics.--In carrying out subsection (a), the 
Administrator shall apply and track performance metrics for the FAA and 
the regulated aviation industry established by the Safety Oversight and 
Certification Advisory Committee.
  (e) Data Generation.--
          (1) Baselines.--Not later than 1 year after the date on which 
        the Safety Oversight and Certification Advisory Committee 
        establishes initial performance metrics for the FAA and the 
        regulated aviation industry under section 302, the 
        Administrator shall generate initial data with respect to each 
        of the metrics applied and tracked under this section.
          (2) Measuring progress toward goals.--The Administrator shall 
        use the metrics applied and tracked under this section to 
        generate data on an ongoing basis and to measure progress 
        toward the achievement of national goals established by the 
        Safety Oversight and Certification Advisory Committee.
  (f) Publication.--The Administrator shall make data generated using 
the metrics applied and tracked under this section available to the 
public in a searchable, sortable, and downloadable format through the 
internet website of the FAA and other appropriate methods and shall 
ensure that the data is made available in a manner that--
          (1) does not provide identifying information regarding an 
        individual or entity; and
          (2) protects proprietary information.

SEC. 312. ORGANIZATION DESIGNATION AUTHORIZATIONS.

  (a) In General.--Chapter 447 of title 49, United States Code, is 
amended by adding at the end the following:

``Sec. 44736. Organization designation authorizations

  ``(a) Delegations of Functions.--
          ``(1) In general.--Except as provided in paragraph (3), when 
        overseeing an ODA holder, the Administrator of the FAA shall--
                  ``(A) require, based on an application submitted by 
                the ODA holder and approved by the Administrator (or 
                the Administrator's designee), a procedures manual that 
                addresses all procedures and limitations regarding the 
                functions to be performed by the ODA holder;
                  ``(B) delegate fully to the ODA holder each of the 
                functions to be performed as specified in the 
                procedures manual, unless the Administrator determines, 
                after the date of the delegation and as a result of an 
                inspection or other investigation, that the public 
                interest and safety of air commerce requires a 
                limitation with respect to 1 or more of the functions; 
                and
                  ``(C) conduct regular oversight activities by 
                inspecting the ODA holder's delegated functions and 
                taking action based on validated inspection findings.
          ``(2) Duties of oda holders.--An ODA holder shall--
                  ``(A) perform each function delegated to the ODA 
                holder in accordance with the approved procedures 
                manual for the delegation;
                  ``(B) make the procedures manual available to each 
                member of the appropriate ODA unit; and
                  ``(C) cooperate fully with oversight activities 
                conducted by the Administrator in connection with the 
                delegation.
          ``(3) Existing oda holders.--With regard to an ODA holder 
        operating under a procedures manual approved by the 
        Administrator before the date of enactment of this section, the 
        Administrator shall--
                  ``(A) at the request of the ODA holder and in an 
                expeditious manner, approve revisions to the ODA 
                holder's procedures manual;
                  ``(B) delegate fully to the ODA holder each of the 
                functions to be performed as specified in the 
                procedures manual, unless the Administrator determines, 
                after the date of the delegation and as a result of an 
                inspection or other investigation, that the public 
                interest and safety of air commerce requires a 
                limitation with respect to one or more of the 
                functions; and
                  ``(C) conduct regular oversight activities by 
                inspecting the ODA holder delegated functions and 
                taking action based on validated inspection findings.
  ``(b) ODA Office.--
          ``(1) Establishment.--Not later than 90 days after the date 
        of enactment of this section, the Administrator of the FAA 
        shall identify, within the FAA Office of Aviation Safety, a 
        centralized policy office to be known as the Organization 
        Designation Authorization Office or the ODA Office.
          ``(2) Purpose.--The purpose of the ODA Office shall be to 
        oversee and ensure the consistency of the FAA's audit functions 
        under the ODA program across the FAA.
          ``(3) Functions.--The ODA Office shall--
                  ``(A) improve performance and ensure full utilization 
                of the authorities delegated under the ODA program;
                  ``(B) create a more consistent approach to audit 
                priorities, procedures, and training under the ODA 
                program;
                  ``(C) review, in a timely fashion, a random sample of 
                limitations on delegated authorities under the ODA 
                program to determine if the limitations are 
                appropriate;
                  ``(D) ensure national consistency in the 
                interpretation and application of the requirements of 
                the ODA program, including any limitations, and in the 
                performance of the ODA program; and
                  ``(E) at the request of an ODA holder, review and 
                approve new limitations to ODA functions.
  ``(c) Definitions.--In this section, the following definitions apply:
          ``(1) FAA.--The term `FAA' means the Federal Aviation 
        Administration.
          ``(2) ODA holder.--The term `ODA holder' means an entity 
        authorized to perform functions pursuant to a delegation made 
        by the Administrator of the FAA under section 44702(d).
          ``(3) ODA unit.--The term ``ODA unit'' means a group of 2 or 
        more individuals who perform, under the supervision of an ODA 
        holder, authorized functions under an ODA.
          ``(4) Organization.--The term ``organization'' means a firm, 
        partnership, corporation, company, association, joint-stock 
        association, or governmental entity.
          ``(5) Organization designation authorization; oda.--The term 
        `Organization Designation Authorization' or `ODA' means an 
        authorization by the FAA under section 44702(d) for an 
        organization comprised of 1 or more ODA units to perform 
        approved functions on behalf of the FAA.''.
  (b) Clerical Amendment.--The analysis for chapter 447 of title 49, 
United States Code, is amended by adding at the end the following:

``44736. Organization designation authorizations.''.

SEC. 313. ODA REVIEW.

  (a) Establishment of Expert Review Panel.--
          (1) Expert panel.--Not later than 60 days after the date of 
        enactment of this Act, the Administrator of the FAA shall 
        convene a multidisciplinary expert review panel (in this 
        section referred to as the ``Panel'').
          (2) Composition of panel.--
                  (A) Appointment of members.--The Panel shall be 
                composed of not more than 20 members appointed by the 
                Administrator.
                  (B) Qualifications.--The members appointed to the 
                Panel shall--
                          (i) each have a minimum of 5 years of 
                        experience in processes and procedures under 
                        the ODA program; and
                          (ii) represent, at a minimum, ODA holders, 
                        aviation manufacturers, safety experts, and FAA 
                        labor organizations, including labor 
                        representatives of FAA aviation safety 
                        inspectors and aviation safety engineers.
  (b) Survey.--The Panel shall conduct a survey of ODA holders and ODA 
program applicants to document and assess FAA certification and 
oversight activities, including use of the ODA program and the 
timeliness and efficiency of the certification process.
  (c) Assessment and Recommendations.--The Panel shall assess and make 
recommendations concerning--
          (1) the FAA's processes and procedures under the ODA program 
        and whether the processes and procedures function as intended;
          (2) the best practices of and lessons learned by ODA holders 
        and individuals who provide oversight of ODA holders;
          (3) performance incentive policies related to the ODA program 
        for FAA personnel;
          (4) training activities related to the ODA program for FAA 
        personnel and ODA holders;
          (5) the impact, if any, that oversight of the ODA program has 
        on FAA resources and the FAA's ability to process applications 
        for certifications outside of the ODA program; and
          (6) the results of the survey conducted under subsection (b).
  (d) Report.--Not later than 180 days after the date the Panel is 
convened under subsection (a), the Panel shall submit to the 
Administrator, the Safety Oversight and Certification Advisory 
Committee, 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 and 
recommendations of the Panel.
  (e) Definitions.--The definitions contained in section 44736 of title 
49, United States Code, as added by this Act, apply to this section.
  (f) Applicable Law.--Public Law 92-463 shall not apply to the Panel.
  (g) Sunset.--The Panel shall terminate on the date of submission of 
the report under subsection (d), or on the date that is 1 year after 
the Panel is convened under subsection (a), whichever occurs first.

SEC. 314. TYPE CERTIFICATION RESOLUTION PROCESS.

  (a) In General.--Section 44704(a) of title 49, United States Code, is 
amended by adding at the end the following:
          ``(6) Type certification resolution process.--
                  ``(A) In general.--Not later than 15 months after the 
                date of enactment of this paragraph, the Administrator 
                shall establish an effective, timely, and milestone-
                based issue resolution process for type certification 
                activities under this subsection.
                  ``(B) Process requirements.--The resolution process 
                shall provide for--
                          ``(i) resolution of technical issues at pre-
                        established stages of the certification 
                        process, as agreed to by the Administrator and 
                        the type certificate applicant;
                          ``(ii) automatic elevation to appropriate 
                        management personnel of the Federal Aviation 
                        Administration and the type certificate 
                        applicant of any major certification process 
                        milestone that is not completed or resolved 
                        within a specific period of time agreed to by 
                        the Administrator and the type certificate 
                        applicant; and
                          ``(iii) resolution of a major certification 
                        process milestone elevated pursuant to clause 
                        (ii) within a specific period of time agreed to 
                        by the Administrator and the type certificate 
                        applicant.
                  ``(C) Major certification process milestone 
                defined.--In this paragraph, the term `major 
                certification process milestone' means a milestone 
                related to a type certification basis, type 
                certification plan, type inspection authorization, 
                issue paper, or other major type certification activity 
                agreed to by the Administrator and the type certificate 
                applicant.''.
  (b) Technical Amendment.--Section 44704 of title 49, United States 
Code, is amended in the section heading by striking ``airworthiness 
certificates,,'' and inserting ``airworthiness certificates,''.

SEC. 315. SAFETY ENHANCING EQUIPMENT AND SYSTEMS FOR SMALL GENERAL 
                    AVIATION AIRPLANES.

  (a) Policy.--Not later than 180 days after the date of enactment of 
this Act, the Administrator of the FAA shall establish and begin 
implementation of a risk-based policy that streamlines the installation 
of safety enhancing equipment and systems for small general aviation 
airplanes in a manner that reduces regulatory delays and significantly 
improves safety.
  (b) Inclusion of Certain Equipment and Systems.--The safety enhancing 
equipment and systems for small general aviation airplanes referred to 
in subsection (a) shall include, at a minimum, the replacement or 
retrofit of primary flight displays, auto pilots, engine monitors, and 
navigation equipment.
  (c) Collaboration.--In carrying out this section, the Administrator 
shall collaborate with general aviation operators, general aviation 
manufacturers, and appropriate FAA labor groups, including 
representatives of FAA aviation safety inspectors and aviation safety 
engineers certified under section 7111 of title 5, United States Code.
  (d) Small General Aviation Airplane Defined.--In this section, the 
term ``small general aviation airplane'' means an airplane that--
          (1) is certified to the standards of part 23 of title 14, 
        Code of Federal Regulations;
          (2) has a seating capacity of fewer than 9 passengers; and
          (3) is not used in scheduled passenger-carrying operations 
        under part 121 or 135 of title 14, Code of Federal Regulations.

SEC. 316. REVIEW OF CERTIFICATION PROCESS FOR SMALL GENERAL AVIATION 
                    AIRPLANES.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Inspector General of the Department of Transportation 
shall initiate a review of the Federal Aviation Administration's 
implementation of the final rule titled ``Revision of Airworthiness 
Standards for Normal, Utility, Acrobatic, and Commuter Category 
Airplanes'' (81 Fed. Reg. 96572).
  (b) Considerations.--In carrying out the review, the Inspector 
General shall assess--
          (1) how the rule puts into practice the Administration's 
        efforts to implement performance and risk-based safety 
        standards;
          (2) whether the Administration's implementation of the rule 
        has improved safety and reduced the regulatory cost burden for 
        the Administration and the aviation industry; and
          (3) if there are lessons learned from, and best practices 
        developed as a result of, the rule that could be applied to 
        airworthiness standards for other categories of aircraft.
  (c) Report.--Not later than 180 days after the date of initiation of 
the review, 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, including findings and 
recommendations.

                  Subtitle C--Flight Standards Reform

SEC. 331. FLIGHT STANDARDS PERFORMANCE OBJECTIVES AND METRICS.

  (a) In General.--Not later than 120 days after the date on which the 
Safety Oversight and Certification Advisory Committee is established 
under section 302, the Administrator of the FAA shall establish 
performance objectives and apply and track metrics for the FAA and the 
aviation industry relating to flight standards activities in accordance 
with this section.
  (b) Collaboration.--The Administrator shall carry out this section in 
collaboration with the Safety Oversight and Certification Advisory 
Committee.
  (c) Performance Objectives.--In carrying out subsection (a), the 
Administrator shall establish performance objectives for the FAA and 
the aviation industry to ensure that, with respect to flight standards 
activities, progress is made toward, at a minimum--
          (1) eliminating delays with respect to such activities;
          (2) increasing accountability for both FAA and industry 
        entities;
          (3) achieving full utilization of FAA delegation and 
        designation authorities;
          (4) fully implementing risk management principles and a 
        systems safety approach;
          (5) reducing duplication of effort;
          (6) eliminating inconsistent regulatory interpretations and 
        inconsistent enforcement activities;
          (7) improving and providing greater opportunities for 
        training, including recurrent training, in auditing and a 
        systems safety approach to oversight;
          (8) developing and allowing utilization of a single master 
        source for guidance;
          (9) providing and utilizing a streamlined appeal process for 
        the resolution of regulatory interpretation questions;
          (10) maintaining and improving safety; and
          (11) increasing transparency.
  (d) Metrics.--In carrying out subsection (a), the Administrator shall 
apply and track performance metrics for the FAA and the regulated 
aviation industry established by the Safety Oversight and Certification 
Advisory Committee.
  (e) Data Generation.--
          (1) Baselines.--Not later than 1 year after the date on which 
        the Safety Oversight and Certification Advisory Committee 
        establishes initial performance metrics for the FAA and the 
        regulated aviation industry under section 302, the 
        Administrator shall generate initial data with respect to each 
        of the metrics applied and tracked under this section.
          (2) Measuring progress toward goals.--The Administrator shall 
        use the metrics applied and tracked under this section to 
        generate data on an ongoing basis and to measure progress 
        toward the achievement of national goals established by the 
        Safety Oversight and Certification Advisory Committee.
  (f) Publication.--The Administrator shall make data generated using 
the metrics applied and tracked under this section available to the 
public in a searchable, sortable, and downloadable format through the 
internet website of the FAA and other appropriate methods and shall 
ensure that the data is made available in a manner that--
          (1) does not provide identifying information regarding an 
        individual or entity; and
          (2) protects proprietary information.

SEC. 332. FAA TASK FORCE ON FLIGHT STANDARDS REFORM.

  (a) Establishment.--Not later than 90 days after the date of 
enactment of this Act, the Administrator of the FAA shall establish the 
FAA Task Force on Flight Standards Reform (in this section referred to 
as the ``Task Force'').
  (b) Membership.--
          (1) Appointment.--The membership of the Task Force shall be 
        appointed by the Administrator.
          (2) Number.--The Task Force shall be composed of not more 
        than 20 members.
          (3) Representation requirements.--The membership of the Task 
        Force shall include representatives, with knowledge of flight 
        standards regulatory processes and requirements, of--
                  (A) air carriers;
                  (B) general aviation;
                  (C) business aviation;
                  (D) repair stations;
                  (E) unmanned aircraft systems operators;
                  (F) flight schools;
                  (G) labor unions, including those representing FAA 
                aviation safety inspectors; and
                  (H) aviation safety experts.
  (c) Duties.--The duties of the Task Force shall include, at a 
minimum, identifying best practices and providing recommendations, for 
current and anticipated budgetary environments, with respect to--
          (1) simplifying and streamlining flight standards regulatory 
        processes;
          (2) reorganizing Flight Standards Services to establish an 
        entity organized by function rather than geographic region, if 
        appropriate;
          (3) FAA aviation safety inspector training opportunities;
          (4) FAA aviation safety inspector standards and performance; 
        and
          (5) achieving, across the FAA, consistent--
                  (A) regulatory interpretations; and
                  (B) application of oversight activities.
  (d) Report.--Not later than 1 year after the date of enactment of 
this Act, the Task Force 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 detailing--
          (1) the best practices identified and recommendations 
        provided by the Task Force under subsection (c); and
          (2) any recommendations of the Task Force for additional 
        regulatory action or cost-effective legislative action.
  (e) Applicable Law.--Public Law 92-463 shall not apply to the Task 
Force.
  (f) Termination.--The Task Force shall terminate on the earlier of--
          (1) the date on which the Task Force submits the report 
        required under subsection (d); or
          (2) the date that is 18 months after the date on which the 
        Task Force is established under subsection (a).

SEC. 333. CENTRALIZED SAFETY GUIDANCE DATABASE.

  (a) Establishment.--Not later than 1 year after the date of enactment 
of this Act, the Administrator of the FAA shall establish a centralized 
safety guidance database that will--
          (1) encompass all of the regulatory guidance documents of the 
        FAA Office of Aviation Safety;
          (2) contain, for each such guidance document, a link to the 
        Code of Federal Regulations provision to which the document 
        relates; and
          (3) be publicly available in a manner that--
                  (A) does not provide identifying information 
                regarding an individual or entity; and
                  (B) protects proprietary information.
  (b) Data Entry Timing.--
          (1) Existing documents.--Not later than 14 months after the 
        date of enactment of this Act, the Administrator shall begin 
        entering into the database established under subsection (a) all 
        of the regulatory guidance documents of the Office of Aviation 
        Safety that are in effect and were issued before the date on 
        which the Administrator begins such entry process.
          (2) New documents and changes.--On and after the date on 
        which the Administrator begins the document entry process under 
        paragraph (1), the Administrator shall ensure that all new 
        regulatory guidance documents of the Office of Aviation Safety 
        and any changes to existing documents are included in the 
        database established under subsection (a).
  (c) Consultation Requirement.--In establishing the database under 
subsection (a), the Administrator shall consult and collaborate with 
appropriate stakeholders, including labor organizations (including 
those representing aviation workers and FAA aviation safety inspectors) 
and industry stakeholders.
  (d) Regulatory Guidance Documents Defined.--In this section, the term 
``regulatory guidance documents'' means all forms of written 
information issued by the FAA that an individual or entity may use to 
interpret or apply FAA regulations and requirements, including 
information an individual or entity may use to determine acceptable 
means of compliance with such regulations and requirements.

SEC. 334. REGULATORY CONSISTENCY COMMUNICATIONS BOARD.

  (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the FAA shall establish a 
Regulatory Consistency Communications Board (in this section referred 
to as the ``Board'').
  (b) Consultation Requirement.--In establishing the Board, the 
Administrator shall consult and collaborate with appropriate 
stakeholders, including FAA labor organizations (including labor 
organizations representing FAA aviation safety inspectors) and industry 
stakeholders.
  (c) Membership.--The Board shall be composed of FAA representatives, 
appointed by the Administrator, from--
          (1) the Flight Standards Service;
          (2) the Aircraft Certification Service; and
          (3) the Office of the Chief Counsel.
  (d) Functions.--The Board shall carry out the following functions:
          (1) Establish, at a minimum, processes by which--
                  (A) FAA personnel and regulated entities may submit 
                anonymous regulatory interpretation questions without 
                fear of retaliation; and
                  (B) FAA personnel may submit written questions, and 
                receive written responses, as to whether a previous 
                approval or regulatory interpretation issued by FAA 
                personnel in another office or region is correct or 
                incorrect.
          (2) Meet on a regular basis to discuss and resolve questions 
        submitted pursuant to paragraph (1) and the appropriate 
        application of regulations and policy with respect to each 
        question.
          (3) Provide to an individual or entity that submitted a 
        question pursuant to paragraph (1) a timely response to the 
        question.
          (4) Establish a process to make resolutions of common 
        regulatory interpretation questions publicly available to FAA 
        personnel and regulated entities without providing any 
        identifying data of the individuals or entities that submitted 
        the questions and in a manner that protects any proprietary 
        information.
          (5) Ensure the incorporation of resolutions of questions 
        submitted pursuant to paragraph (1) into regulatory guidance 
        documents.
  (e) Performance Metrics, Timelines, and Goals.--Not later than 180 
days after the date on which the Safety Oversight and Certification 
Advisory Committee establishes performance metrics for the FAA and the 
regulated aviation industry under section 302, the Administrator, in 
collaboration with the Advisory Committee, shall--
          (1) establish performance metrics, timelines, and goals to 
        measure the progress of the Board in resolving regulatory 
        interpretation questions submitted pursuant to subsection 
        (d)(1); and
          (2) implement a process for tracking the progress of the 
        Board in meeting the metrics, timelines, and goals established 
        under paragraph (1).

                      Subtitle D--Safety Workforce

SEC. 341. SAFETY WORKFORCE TRAINING STRATEGY.

  (a) Safety Workforce Training Strategy.--Not later than 60 days after 
the date of enactment of this Act, the Administrator of the FAA shall 
establish a safety workforce training strategy that--
          (1) allows employees participating in organization management 
        teams or conducting ODA program audits to complete, in a timely 
        fashion, appropriate training, including recurrent training, in 
        auditing and a systems safety approach to oversight;
          (2) seeks knowledge-sharing opportunities between the FAA and 
        the aviation industry regarding new equipment and systems, best 
        practices, and other areas of interest;
          (3) functions within the current and anticipated budgetary 
        environments; and
          (4) includes milestones and metrics for meeting the 
        requirements of paragraphs (1), (2), and (3).
  (b) Report.--Not later than 270 days after the date of establishment 
of the strategy required under subsection (a), 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 implementation of the 
strategy and progress in meeting any milestones and metrics included in 
the strategy.
  (c) Definitions.--In this section, the following definitions apply:
          (1) ODA; oda holder.--The terms ``ODA'' and ``ODA holder'' 
        have the meanings given those terms in section 44736 of title 
        49, United States Code, as added by this Act.
          (2) Organization management team.--The term ``organization 
        management team'' means a team consisting of FAA aviation 
        safety engineers, flight test pilots, and aviation safety 
        inspectors overseeing an ODA holder and its certification 
        activity.

SEC. 342. WORKFORCE REVIEW.

  (a) Workforce Review.--Not later than 90 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall conduct a review to assess the workforce and training needs of 
the FAA Office of Aviation Safety in the anticipated budgetary 
environment.
  (b) Contents.--The review required under subsection (a) shall 
include--
          (1) a review of current aviation safety inspector and 
        aviation safety engineer hiring, training, and recurrent 
        training requirements;
          (2) an analysis of the skills and qualifications required of 
        aviation safety inspectors and aviation safety engineers for 
        successful performance in the current and future projected 
        aviation safety regulatory environment, including the need for 
        a systems engineering discipline within the FAA to guide the 
        engineering of complex systems, with an emphasis on auditing 
        designated authorities;
          (3) a review of current performance incentive policies of the 
        FAA, as applied to the Office of Aviation Safety, including 
        awards for performance;
          (4) an analysis of ways the FAA can work with industry and 
        labor, including labor groups representing FAA aviation safety 
        inspectors and aviation safety engineers, to establish 
        knowledge-sharing opportunities between the FAA and the 
        aviation industry regarding new equipment and systems, best 
        practices, and other areas of interest; and
          (5) recommendations on the most effective qualifications, 
        training programs (including e-learning training), and 
        performance incentive approaches to address the needs of the 
        future projected aviation safety regulatory system in the 
        anticipated budgetary environment.
  (c) Report.--Not later than 270 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 review required under subsection (a).

                   Subtitle E--International Aviation

SEC. 351. PROMOTION OF UNITED STATES AEROSPACE STANDARDS, PRODUCTS, AND 
                    SERVICES ABROAD.

  Section 40104 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(d) Promotion of United States Aerospace Standards, Products, and 
Services Abroad.--The Administrator shall take appropriate actions to--
          ``(1) promote United States aerospace safety standards 
        abroad;
          ``(2) facilitate and vigorously defend approvals of United 
        States aerospace products and services abroad;
          ``(3) with respect to bilateral partners, utilize bilateral 
        safety agreements and other mechanisms to improve validation of 
        United States type certificated aeronautical products and 
        appliances and enhance mutual acceptance in order to eliminate 
        redundancies and unnecessary costs; and
          ``(4) with respect to foreign safety authorities, streamline 
        validation and coordination processes.''.

SEC. 352. BILATERAL EXCHANGES OF SAFETY OVERSIGHT RESPONSIBILITIES.

  Section 44701(e) of title 49, United States Code, is amended by 
adding at the end the following:
          ``(5) Foreign airworthiness directives.--
                  ``(A) Acceptance.--The Administrator may accept an 
                airworthiness directive issued by an aeronautical 
                safety authority of a foreign country, and leverage 
                that authority's regulatory process, if--
                          ``(i) the country is the state of design for 
                        the product that is the subject of the 
                        airworthiness directive;
                          ``(ii) the United States has a bilateral 
                        safety agreement relating to aircraft 
                        certification with the country;
                          ``(iii) as part of the bilateral safety 
                        agreement with the country, the Administrator 
                        has determined that such aeronautical safety 
                        authority has a certification system relating 
                        to safety that produces a level of safety 
                        equivalent to the level produced by the system 
                        of the Federal Aviation Administration;
                          ``(iv) the aeronautical safety authority of 
                        the country utilizes an open and transparent 
                        notice and comment process in the issuance of 
                        airworthiness directives; and
                          ``(v) the airworthiness directive is 
                        necessary to provide for the safe operation of 
                        the aircraft subject to the directive.
                  ``(B) Alternative approval process.--Notwithstanding 
                subparagraph (A), the Administrator may issue a Federal 
                Aviation Administration airworthiness directive instead 
                of accepting an airworthiness directive otherwise 
                eligible for acceptance under such subparagraph, if the 
                Administrator determines that such issuance is 
                necessary for safety or operational reasons due to the 
                complexity or unique features of the Federal Aviation 
                Administration airworthiness directive or the United 
                States aviation system.
                  ``(C) Alternative means of compliance.--The 
                Administrator may--
                          ``(i) accept an alternative means of 
                        compliance, with respect to an airworthiness 
                        directive accepted under subparagraph (A), that 
                        was approved by the aeronautical safety 
                        authority of the foreign country that issued 
                        the airworthiness directive; or
                          ``(ii) notwithstanding subparagraph (A), and 
                        at the request of any person affected by an 
                        airworthiness directive accepted under such 
                        subparagraph, approve an alternative means of 
                        compliance with respect to the airworthiness 
                        directive.
                  ``(D) Limitation.--The Administrator may not accept 
                an airworthiness directive issued by an aeronautical 
                safety authority of a foreign country if the 
                airworthiness directive addresses matters other than 
                those involving the safe operation of an aircraft.''.

SEC. 353. FAA LEADERSHIP ABROAD.

  (a) In General.--To promote United States aerospace safety standards, 
reduce redundant regulatory activity, and facilitate acceptance of FAA 
design and production approvals abroad, the Administrator of the FAA 
shall--
          (1) attain greater expertise in issues related to dispute 
        resolution, intellectual property, and export control laws to 
        better support FAA certification and other aerospace regulatory 
        activities abroad;
          (2) work with United States companies to more accurately 
        track the amount of time it takes foreign authorities, 
        including bilateral partners, to validate United States type 
        certificated aeronautical products;
          (3) provide assistance to United States companies that have 
        experienced significantly long foreign validation wait times;
          (4) work with foreign authorities, including bilateral 
        partners, to collect and analyze data to determine the 
        timeliness of the acceptance and validation of FAA design and 
        production approvals by foreign authorities and the acceptance 
        and validation of foreign-certified products by the FAA;
          (5) establish appropriate benchmarks and metrics to measure 
        the success of bilateral aviation safety agreements and to 
        reduce the validation time for United States type certificated 
        aeronautical products abroad; and
          (6) work with foreign authorities, including bilateral 
        partners, to improve the timeliness of the acceptance and 
        validation of FAA design and production approvals by foreign 
        authorities and the acceptance and validation of foreign-
        certified products by the FAA.
  (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Administrator of the FAA 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 that--
          (1) describes the FAA's strategic plan for international 
        engagement;
          (2) describes the structure and responsibilities of all FAA 
        offices that have international responsibilities, including the 
        Aircraft Certification Office, and all the activities conducted 
        by those offices related to certification and production;
          (3) describes current and forecasted staffing and travel 
        needs for the FAA's international engagement activities, 
        including the needs of the Aircraft Certification Office in the 
        current and forecasted budgetary environment;
          (4) provides recommendations, if appropriate, to improve the 
        existing structure and personnel and travel policies supporting 
        the FAA's international engagement activities, including the 
        activities of the Aviation Certification Office, to better 
        support the growth of United States aerospace exports; and
          (5) identifies cost-effective policy initiatives, regulatory 
        initiatives, or legislative initiatives needed to improve and 
        enhance the timely acceptance of United States aerospace 
        products abroad.
  (c) International Travel.--The Administrator of the FAA, or the 
Administrator's designee, may authorize international travel for any 
FAA employee, without the approval of any other person or entity, if 
the Administrator determines that the travel is necessary--
          (1) to promote United States aerospace safety standards; or
          (2) to support expedited acceptance of FAA design and 
        production approvals.

SEC. 354. REGISTRATION, CERTIFICATION, AND RELATED FEES.

  Section 45305 of title 49, United States Code, is amended--
          (1) in subsection (a) by striking ``Subject to subsection 
        (b)'' and inserting ``Subject to subsection (c)'';
          (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
          (3) by inserting after subsection (a) the following:
  ``(b) Certification Services.--Subject to subsection (c), and 
notwithstanding section 45301(a), the Administrator may establish and 
collect a fee from a foreign government or entity for services related 
to certification, regardless of where the services are provided, if the 
fee--
          ``(1) is established and collected in a manner consistent 
        with aviation safety agreements; and
          ``(2) does not exceed the estimated costs of the services.''.

                            TITLE IV--SAFETY

                     Subtitle A--General Provisions

SEC. 401. FAA TECHNICAL TRAINING.

  (a) E-Learning Training Pilot Program.--Not later than 90 days after 
the date of enactment of this Act, the Administrator of the Federal 
Aviation Administration, in collaboration with the exclusive bargaining 
representatives of covered FAA personnel, shall establish an e-learning 
training pilot program in accordance with the requirements of this 
section.
  (b) Curriculum.--The pilot program shall--
          (1) include a recurrent training curriculum for covered FAA 
        personnel to ensure that the personnel receive instruction on 
        the latest aviation technologies, processes, and procedures;
          (2) focus on providing specialized technical training for 
        covered FAA personnel, as determined necessary by the 
        Administrator;
          (3) include training courses on applicable regulations of the 
        Federal Aviation Administration; and
          (4) consider the efficacy of instructor-led online training.
  (c) Pilot Program Termination.--The pilot program shall terminate 1 
year after the date of establishment of the pilot program.
  (d) E-Learning Training Program.--Upon termination of the pilot 
program, the Administrator shall establish an e-learning training 
program that incorporates lessons learned for covered FAA personnel as 
a result of the pilot program.
  (e) Definitions.--In this section, the following definitions apply:
          (1) Covered faa personnel.--The term ``covered FAA 
        personnel'' means airway transportation systems specialists and 
        aviation safety inspectors of the Federal Aviation 
        Administration.
          (2) E-learning training.--The term ``e-learning training'' 
        means learning utilizing electronic technologies to access 
        educational curriculum outside of a traditional classroom.

SEC. 402. SAFETY CRITICAL STAFFING.

  (a) Update of FAA's Safety Critical Staffing Model.--Not later than 
270 days after the date of enactment of this Act, and at least 2 years 
before the date of transfer, the Administrator of the Federal Aviation 
Administration shall update the safety critical staffing model of the 
Administration to determine the number of aviation safety inspectors 
that will be needed to fulfill the safety oversight mission of the 
Administration before and after the date of transfer, including safety 
oversight of the American Air Navigation Services Corporation.
  (b) Audit by DOT Inspector General.--
          (1) In general.--Not later than 90 days after the date on 
        which the Administrator has updated the safety critical 
        staffing model under subsection (a), the Inspector General of 
        the Department of Transportation shall conduct an audit of the 
        staffing model.
          (2) Contents.--The audit shall include, at a minimum--
                  (A) a review of the assumptions and methodologies 
                used in devising and implementing the staffing model to 
                assess the adequacy of the staffing model in predicting 
                the number of aviation safety inspectors needed--
                          (i) to properly fulfill the mission of the 
                        Administration before and after the date of 
                        transfer;
                          (ii) to meet the future growth of the 
                        aviation industry; and
                          (iii) to provide proper oversight of air 
                        traffic services after the date of transfer; 
                        and
                  (B) a determination on whether the staffing model 
                takes into account the Administration's authority to 
                fully utilize designees before and after the date of 
                transfer.
          (3) Report on audit.--
                  (A) Report to secretary.--Not later than 30 days 
                after the date of completion of the audit, the 
                Inspector General shall submit to the Secretary a 
                report on the results of the audit.
                  (B) Report to congress.--Not later than 60 days after 
                the date of receipt of the report, 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 copy of the report, together with, if 
                appropriate, a description of any actions taken or to 
                be taken to address the results of the audit.
  (c) Date of Transfer Defined.--In this section, the term ``date of 
transfer'' has the meaning given that term in section 90101(a) of title 
49, United States Code, as added by this Act.

SEC. 403. INTERNATIONAL EFFORTS REGARDING TRACKING OF CIVIL AIRCRAFT.

  The Administrator of the Federal Aviation Administration shall 
exercise leadership on creating a global approach to improving aircraft 
tracking by working with--
          (1) foreign counterparts of the Administrator in the 
        International Civil Aviation Organization and its subsidiary 
        organizations;
          (2) other international organizations and fora; and
          (3) the private sector.

SEC. 404. AIRCRAFT DATA ACCESS AND RETRIEVAL SYSTEMS.

  (a) Assessment.--Not later than 90 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall initiate an assessment of aircraft data access and retrieval 
systems for part 121 air carrier aircraft that are used in extended 
overwater operations to--
          (1) determine if the systems provide improved access and 
        retrieval of aircraft data and cockpit voice recordings in the 
        event of an aircraft accident; and
          (2) assess the cost effectiveness of each system assessed.
  (b) Systems To Be Examined.--The systems to be examined under this 
section shall include, at a minimum--
          (1) automatic deployable flight recorders;
          (2) emergency locator transmitters; and
          (3) satellite-based solutions.
  (c) Report.--Not later than 1 year after the date of initiation of 
the assessment, 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.
  (d) Part 121 Air Carrier Defined.--In this section, 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.

SEC. 405. ADVANCED COCKPIT DISPLAYS.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall initiate a review of heads-up display systems, heads-down display 
systems employing synthetic vision systems, and enhanced vision systems 
(in this section referred to as ``HUD systems'', ``SVS'', and ``EVS'', 
respectively).
  (b) Contents.--The review shall--
          (1) evaluate the impacts of single- and dual-installed HUD 
        systems, SVS, and EVS on the safety and efficiency of aircraft 
        operations within the national airspace system; and
          (2) review a sufficient quantity of commercial aviation 
        accidents or incidents in order to evaluate if HUD systems, 
        SVS, and EVS would have produced a better outcome in that 
        accident or incident.
  (c) Consultation.--In conducting the review, the Administrator shall 
consult with aviation manufacturers, representatives of pilot groups, 
aviation safety organizations, and any government agencies the 
Administrator considers appropriate.
  (d) 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, the actions the 
Administrator plans to take with respect to the systems reviewed, and 
the associated timeline for such actions.

SEC. 406. MARKING OF TOWERS.

  Section 2110 of the FAA Extension, Safety, and Security Act of 2016 
(49 U.S.C. 44718 note) is amended--
          (1) by striking subsections (a) through (c) and inserting the 
        following:
  ``(a) Application.--
          ``(1) In general.--Except as provided by paragraph (2), not 
        later than 1 year after the date of enactment of the 21st 
        Century AIRR Act or the availability of the database developed 
        by the Administrator of the Federal Aviation Administration 
        pursuant to subsection (c), whichever is later, all covered 
        towers shall be either--
                  ``(A) clearly marked consistent with applicable 
                guidance in the advisory circular of the Federal 
                Aviation Administration issued December 4, 2015 (AC 70/
                7460-IL); or
                  ``(B) included in the database described in 
                subsection (c).
          ``(2) Meteorological evaluation tower.--A covered tower that 
        is a meteorological evaluation tower shall be subject to the 
        requirements of paragraphs (1)(A) and (1)(B).'';
          (2) by redesignating subsections (d) and (e) as subsections 
        (b) and (c), respectively;
          (3) in subsection (b)(1)(A) (as so redesignated)--
                  (A) in clause (i)(I) by striking ``self-standing or'' 
                and inserting ``a meteorological evaluation tower or 
                tower''; and
                  (B) in clause (ii)--
                          (i) in subclause (IV) by striking ``or'' at 
                        the end;
                          (ii) in subclause (V) by striking the period 
                        at the end and inserting a semicolon; and
                          (iii) by adding at the end the following:
                                  ``(VI) is located within the right-
                                of-way of a rail carrier, including 
                                within the boundaries of a rail yard, 
                                and is used for a railroad purpose;
                                  ``(VII) is determined by the 
                                Administrator to pose no hazard to air 
                                navigation; or
                                  ``(VIII) has already mitigated any 
                                hazard to aviation safety in accordance 
                                with Federal Aviation Administration 
                                guidance or as otherwise approved by 
                                the Administrator.''; and
          (4) in subsection (c) (as so redesignated)--
                  (A) by striking paragraph (1) and inserting the 
                following:
          ``(1) develop a database that contains the location and 
        height of each covered tower that, pursuant to subsection (a), 
        the owner or operator of such tower elects not to mark, except 
        that meteorological evaluation towers shall be marked and 
        contained in the database;'';
                  (B) in paragraph (3) by striking ``and'' at the end;
                  (C) in paragraph (4) by striking the period at the 
                end and inserting a semicolon; and
                  (D) by adding at the end the following:
          ``(5) ensure that the tower information in the database is 
        de-identified and that the information only includes the 
        location and height of covered towers; and
          ``(6) make the database available for use not later than 1 
        year after the date of enactment of the 21st Century AIRR 
        Act.''.

SEC. 407. CABIN EVACUATION.

  (a) Review.--The Administrator of the Federal Aviation Administration 
shall review--
          (1) evacuation certification of transport-category aircraft 
        used in air transportation, with regard to--
                  (A) emergency conditions, including impacts into 
                water;
                  (B) crew procedures used for evacuations under actual 
                emergency conditions; and
                  (C) any relevant changes to passenger demographics 
                and legal requirements (including the Americans with 
                Disabilities Act of 1990) that affect emergency 
                evacuations; and
          (2) recent accidents and incidents where passengers evacuated 
        such aircraft.
  (b) Consultation; Review of Data.--In conducting the review, the 
Administrator shall--
          (1) consult with the National Transportation Safety Board, 
        transport-category aircraft manufacturers, air carriers, and 
        other relevant experts and Federal agencies, including groups 
        representing passengers, airline crewmembers, maintenance 
        employees, and emergency responders; and
          (2) review relevant data with respect to evacuation 
        certification of transport-category aircraft.
  (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 review and related 
recommendations, if any, including any recommendations for revisions to 
the assumptions and methods used for assessing evacuation certification 
of transport-category aircraft.

SEC. 408. ODA STAFFING AND OVERSIGHT.

  (a) Report to Congress.--Not later than 270 days after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration 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 
Administration's progress with respect to--
          (1) determining what additional model inputs and labor 
        distribution codes are needed to identify ODA oversight 
        staffing needs prior to and after the date of transfer;
          (2) developing and implementing system-based evaluation 
        criteria and risk-based tools to aid ODA team members in 
        targeting their oversight activities;
          (3) developing agreements and processes for sharing resources 
        to ensure adequate oversight of ODA personnel performing 
        certification and inspection work at supplier and company 
        facilities; and
          (4) ensuring full utilization of ODA authority prior to and 
        after the date of transfer.
  (b) Definitions.--In this section, the following definitions apply:
          (1) Date of transfer.--The term ``date of transfer'' has the 
        meaning given that term in section 90101(a) of title 49, United 
        States Code, as added by this Act.
          (2) ODA.--the term ``ODA'' has the meaning given that term in 
        section 44736 of title 49, United States Code, as added by this 
        Act.

SEC. 409. FUNDING FOR ADDITIONAL SAFETY NEEDS.

  Section 44704 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(f) Funding for Additional Safety Needs.--
          ``(1) Acceptance of applicant-provided funds.--
        Notwithstanding any other provision of law, the Administrator 
        may accept funds from an applicant for a certificate under this 
        section to hire additional staff or obtain the services of 
        consultants and experts to facilitate the timely processing, 
        review, and issuance of certificates under this section.
          ``(2) Rules of construction.--
                  ``(A) In general.--Nothing in this section may be 
                construed as permitting the Administrator to grant 
                priority or afford any preference to an applicant 
                providing funds under paragraph (1).
                  ``(B) Policies and procedures.--The Administrator 
                shall implement such policies and procedures as may be 
                required to ensure that the acceptance of funds under 
                paragraph (1) does not prejudice the Administrator in 
                the issuance of any certificate to an applicant.
          ``(3) Receipts credited as offsetting collections.--
        Notwithstanding section 3302 of title 31, any funds accepted 
        under this subsection--
                  ``(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. 410. FUNDING FOR ADDITIONAL FAA LICENSING NEEDS.

  (a) In General.--Chapter 509 of title 51, United States Code, is 
amended by adding at the end the following:

``Sec. 50924. Funding to facilitate FAA licensing

  ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary of Transportation may accept funds from a person applying for 
a license or permit under this chapter to hire additional staff or 
obtain the services of consultants and experts--
          ``(1) to facilitate the timely processing, review, and 
        issuance of licenses or permits issued under this chapter;
          ``(2) to conduct environmental activities, studies, or 
        reviews associated with such licenses or permits; or
          ``(3) to conduct additional activities associated with or 
        necessitated by such licenses or permits, including pre-
        application consultation, hazard area determination, or on-site 
        inspection.
  ``(b) Rules of Construction.--
          ``(1) In general.--Nothing in this section may be construed 
        as permitting the Secretary to grant priority or afford any 
        preference to an applicant providing funds under subsection 
        (a).
          ``(2) Policies and procedures.--The Secretary shall implement 
        such policies and procedures as may be required to ensure that 
        the acceptance of funds under subsection (a) does not prejudice 
        the Secretary in the issuance of any license or permit to an 
        applicant.
  ``(c) Receipts Credited as Offsetting Collections.--Notwithstanding 
section 3302 of title 31, any funds accepted under this section--
          ``(1) shall be credited as offsetting collections to the 
        account that finances the activities and services for which the 
        funds are accepted;
          ``(2) shall be available for expenditure only to pay the 
        costs of activities and services for which the funds are 
        accepted; and
          ``(3) shall remain available until expended.''.
  (b) Clerical Amendment.--The analysis for chapter 509 of title 51, 
United States Code, is amended by adding at the end the following:

``50924. Funding to facilitate FAA licensing.''.

SEC. 411. EMERGENCY MEDICAL EQUIPMENT ON PASSENGER AIRCRAFT.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Administrator of the Federal Aviation Administration 
shall evaluate and revise, as appropriate, regulations in part 121 of 
title 14, Code of Federal Regulations, regarding emergency medical 
equipment, including the contents of first-aid kits, applicable to all 
certificate holders operating passenger aircraft under that part.
  (b) Consideration.--In carrying out subsection (a), the Administrator 
shall consider whether the minimum contents of approved emergency 
medical kits, including approved first-aid kits, include appropriate 
medications and equipment to meet the emergency medical needs of 
children.

SEC. 412. HIMS PROGRAM.

  Not later than 180 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall conduct a 
human intervention motivation study (HIMS) program for flight 
crewmembers employed by commercial air carriers operating in United 
States airspace.

SEC. 413. ACCEPTANCE OF VOLUNTARILY PROVIDED SAFETY INFORMATION.

  (a) In General.--There shall be a presumption that an individual's 
voluntary disclosure of an operational or maintenance issue related to 
aviation safety under an aviation safety action program meets the 
criteria for acceptance as a valid disclosure under such program.
  (b) Disclaimer Required.--Any dissemination of a disclosure that was 
submitted and accepted under an aviation safety action program pursuant 
to the presumption under subsection (a), but that has not undergone 
review by an event review committee, shall be accompanied by a 
disclaimer stating that the disclosure--
          (1) has not been reviewed by an event review committee tasked 
        with reviewing such disclosures; and
          (2) may subsequently be determined to be ineligible for 
        inclusion in the aviation safety action program.
  (c) Rejection of Disclosure.--A disclosure described under subsection 
(a) shall be rejected from an aviation safety action program if, after 
a review of the disclosure, an event review committee tasked with 
reviewing such disclosures determines that the disclosure fails to meet 
the criteria for acceptance under such program.
  (d) Aviation Safety Action Program Defined.--In this section, the 
term ``aviation safety action program'' means a program established in 
accordance with Federal Aviation Administration Advisory Circular 120-
66B, issued November 15, 2002 (including any similar successor advisory 
circular), to allow an individual to voluntarily disclose operational 
or maintenance issues related to aviation safety.

SEC. 414. FLIGHT ATTENDANT DUTY PERIOD LIMITATIONS AND REST 
                    REQUIREMENTS.

  (a) Modification of Final Rule.--
          (1) In general.--Not later than 30 days after the date of 
        enactment of this Act, the Secretary of Transportation shall 
        modify the final rule of the Federal Aviation Administration 
        published in the Federal Register on August 19, 1994 (59 Fed. 
        Reg. 42974; relating to flight attendant duty period 
        limitations and rest requirements) in accordance with the 
        requirements of this subsection.
          (2) Contents.--The final rule, as modified under paragraph 
        (1), shall ensure that--
                  (A) a flight attendant scheduled to a duty period of 
                14 hours or less is given a scheduled rest period of at 
                least 10 consecutive hours; and
                  (B) the rest period is not reduced under any 
                circumstances.
  (b) Fatigue Risk Management Plan.--
          (1) Submission of plan by part 121 air carriers.--Not later 
        than 90 days after the date of enactment of this Act, each air 
        carrier operating under part 121 of title 14, Code of Federal 
        Regulations (in this section referred to as a ``part 121 air 
        carrier''), shall submit to the Administrator of the Federal 
        Aviation Administration for review and acceptance a fatigue 
        risk management plan for the carrier's flight attendants.
          (2) Contents of plan.--A fatigue risk management plan 
        submitted by a part 121 air carrier under paragraph (1) shall 
        include the following:
                  (A) Current flight time and duty period limitations.
                  (B) A rest scheme consistent with such limitations 
                that enables the management of flight attendant 
                fatigue, including annual training to increase 
                awareness of--
                          (i) fatigue;
                          (ii) the effects of fatigue on flight 
                        attendants; and
                          (iii) fatigue countermeasures.
                  (C) Development and use of a methodology that 
                continually assesses the effectiveness of 
                implementation of the plan, including the ability of 
                the plan--
                          (i) to improve alertness; and
                          (ii) to mitigate performance errors.
          (3) Review.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall review and 
        accept or reject each fatigue risk management plan submitted 
        under this subsection. If the Administrator rejects a plan, the 
        Administrator shall provide suggested modifications for 
        resubmission of the plan.
          (4) Plan updates.--
                  (A) In general.--A part 121 air carrier shall update 
                its fatigue risk management plan under paragraph (1) 
                every 2 years and submit the update to the 
                Administrator for review and acceptance.
                  (B) Review.--Not later than 1 year after the date of 
                submission of a plan update under subparagraph (A), the 
                Administrator shall review and accept or reject the 
                update. If the Administrator rejects an update, the 
                Administrator shall provide suggested modifications for 
                resubmission of the update.
          (5) Compliance.--A part 121 air carrier shall comply with the 
        fatigue risk management plan of the air carrier that is 
        accepted by the Administrator under this subsection.
          (6) Civil penalties.--A violation of this subsection by a 
        part 121 air carrier shall be treated as a violation of chapter 
        447 of title 49, United States Code, for purposes of the 
        application of civil penalties under chapter 463 of that title.

SEC. 415. SECONDARY COCKPIT BARRIERS.

  Not later than 1 year after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall issue an 
order requiring the installation of a secondary cockpit barrier on each 
aircraft that is manufactured for delivery to a passenger air carrier 
in the United States operating under the provisions of part 121 of 
title 14, Code of Federal Regulations.

SEC. 416. AVIATION MAINTENANCE INDUSTRY TECHNICAL WORKFORCE.

  (a) Study.--The Comptroller General of the United States shall 
conduct a study on technical workers in the aviation maintenance 
industry.
  (b) Contents.--In conducting the study, the Comptroller General 
shall--
          (1) analyze the current Standard Occupational Classification 
        system with regard to the aviation profession, particularly 
        technical workers in the aviation maintenance industry;
          (2) analyze how changes to the Federal employment 
        classification of aviation maintenance industry workers might 
        affect government data on unemployment rates and wages;
          (3) analyze how changes to the Federal employment 
        classification of aviation maintenance industry workers might 
        affect projections for future aviation maintenance industry 
        workforce needs and project technical worker shortfalls;
          (4) analyze the impact of Federal regulation, including 
        Federal Aviation Administration oversight of certification, 
        testing, and education programs, on employment of technical 
        workers in the aviation maintenance industry;
          (5) develop recommendations on how Federal Aviation 
        Administration regulations and policies could be improved to 
        address aviation maintenance industry needs for technical 
        workers; and
          (6) develop recommendations for better coordinating actions 
        by government, educational institutions, and businesses to 
        support workforce growth in the aviation maintenance industry.
  (c) Report.--Not later than 1 year 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.
  (d) Definitions.-- In this section, the following definitions apply:
          (1) Aviation maintenance industry.--The term ``aviation 
        maintenance industry'' means repair stations certificated under 
        part 145 of title 14, Code of Federal Regulations.
          (2) Technical worker.--The term ``technical worker'' means an 
        individual authorized under part 43 of title 14, Code of 
        Federal Regulations, to maintain, rebuild, alter, or perform 
        preventive maintenance on an aircraft, airframe, aircraft 
        engine, propeller, appliance, or component part or employed by 
        an entity so authorized to perform such a function.

SEC. 417. CRITICAL AIRFIELD MARKINGS.

   Not later than 180 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall issue a 
request for proposal for a study that includes--
          (1) an independent, third party study to assess the 
        durability of Type III and Type I glass beads applied to 
        critical markings over a 2-year period at not fewer than 2 
        primary airports in varying weather conditions to measure the 
        retroflectivity levels of such markings on a quarterly basis; 
        and
          (2) a study at 2 other airports carried out by applying Type 
        III beads on half of the centerline and Type I beads to the 
        other half and providing for assessments from pilots through 
        surveys administered by a third party as to the visibility and 
        performance of the Type III glass beads as compared to the Type 
        I glass beads over a 1-year period.

                 Subtitle B--Unmanned Aircraft Systems

SEC. 431. DEFINITIONS.

  Except as otherwise provided, the definitions contained in section 
45501 of title 49, United States Code (as added by this Act), shall 
apply to this subtitle.

SEC. 432. CODIFICATION OF EXISTING LAW; ADDITIONAL PROVISIONS.

  (a) In General.--Subtitle VII of title 49, United States Code, is 
amended by inserting after chapter 453 the following:

                ``CHAPTER 455--UNMANNED AIRCRAFT SYSTEMS

``Sec.
``45501. Definitions.
``45502. Integration of civil unmanned aircraft systems into national 
airspace system.
``45503. Risk-based permitting of unmanned aircraft systems.
``45504. Public unmanned aircraft systems.
``45505. Special rules for certain unmanned aircraft systems.
``45506. Certification of new air navigation facilities for unmanned 
aircraft and other aircraft.
``45507. Special rules for certain UTM and low-altitude CNS.
``45508. Operation of small unmanned aircraft.
``45509. Special rules for model aircraft.
``45510. Carriage of property for compensation or hire.
``45511. Micro UAS operations.

``Sec. 45501. Definitions

  ``In this chapter, the following definitions apply:
          ``(1) Aerial data collection.--The term `aerial data 
        collection' means the gathering of data by a device aboard an 
        unmanned aircraft during flight, including imagery, sensing, 
        and measurement by such device.
          ``(2) Arctic.--The term `Arctic' means the United States zone 
        of the Chukchi Sea, Beaufort Sea, and Bering Sea north of the 
        Aleutian chain.
          ``(3) 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.
          ``(4) CNS.--The term `CNS' means a communication, navigation, 
        or surveillance system or service.
          ``(5) Model aircraft.--the term `model aircraft' means an 
        unmanned aircraft that is--
                  ``(A) capable of sustained flight in the atmosphere;
                  ``(B) flown within visual line of sight of the person 
                operating the aircraft; and
                  ``(C) flown for hobby or recreational purposes.
          ``(6) Permanent areas.--The term `permanent areas' means 
        areas on land or water that provide for launch, recovery, and 
        operation of small unmanned aircraft.
          ``(7) 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(a)).
          ``(8) 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.
          ``(9) Small unmanned aircraft.--The term `small unmanned 
        aircraft' means an unmanned aircraft weighing less than 55 
        pounds, including everything that is on board the aircraft.
          ``(10) 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.
          ``(11) 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.
          ``(12) UTM.--The term `UTM' means an unmanned aircraft 
        traffic management system or service.

``Sec. 45502. Integration of civil unmanned aircraft systems into 
                    national airspace system

  ``(a) Required Planning for Integration.--
          ``(1) Comprehensive plan.--Not later than November 10, 2012, 
        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 airspace designation for 
                cooperative manned and unmanned flight operations in 
                the national airspace system;
                  ``(F) 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;
                  ``(G) 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
                  ``(H) 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 February 14, 2013, 
        the Secretary shall submit to Congress a copy of the plan 
        required under paragraph (1).
          ``(5) Roadmap.--Not later than February 14, 2013, the 
        Secretary shall approve and make available in print and on the 
        Administration's internet website 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 45508;
          ``(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) Expanding Use of Unmanned Aircraft Systems in Arctic.--
          ``(1) In general.--Not later than August 12, 2012, 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. 45503. Risk-based permitting of unmanned aircraft systems

  ``(a) In General.--Not later than 120 days after the date of 
enactment of this section, the Administrator of the Federal Aviation 
Administration shall establish procedures for issuing permits under 
this section with respect to certain unmanned aircraft systems and 
operations thereof.
  ``(b) Permitting Standards.--Upon the submission of an application in 
accordance with subsection (d), the Administrator shall issue a permit 
with respect to the proposed operation of an unmanned aircraft system 
if the Administrator determines that the unmanned aircraft system and 
the proposed operation achieve a level of safety that is equivalent 
to--
          ``(1) other unmanned aircraft systems and operations 
        permitted under regulation, exemption, or other authority 
        granted by the Administrator; or
          ``(2) any other aircraft operation approved by the 
        Administrator with similar risk characteristics or profiles.
  ``(c) Safety Criteria for Consideration.--In determining whether a 
proposed operation meets the standards described in subsection (b), the 
Administrator shall consider the following safety criteria:
          ``(1) The kinetic energy of the unmanned aircraft system.
          ``(2) The location of the proposed operation, including the 
        proximity to--
                  ``(A) structures;
                  ``(B) congested areas;
                  ``(C) special-use airspace; and
                  ``(D) persons on the ground.
          ``(3) The nature of the operation, including any proposed 
        risk mitigation.
          ``(4) Any known hazard of the proposed operation and the 
        severity and likelihood of such hazard.
          ``(5) Any known failure modes of the unmanned aircraft 
        system, failure mode effects and criticality, and any 
        mitigating features or capabilities.
          ``(6) The operational history of relevant technologies, if 
        available.
          ``(7) Any history of civil penalties or certificate actions 
        by the Administrator against the applicant seeking the permit.
          ``(8) Any other safety criteria the Administrator considers 
        appropriate.
  ``(d) Application.--An application under this section shall include 
evidence that the unmanned aircraft system and the proposed operation 
thereof meet the standards described in subsection (b) based on the 
criteria described in subsection (c).
  ``(e) Scope of Permit.--A permit issued under this section shall--
          ``(1) be valid for 5 years;
          ``(2) constitute approval of both the airworthiness of the 
        unmanned aircraft system and the proposed operation of such 
        system;
          ``(3) be renewable for additional 5-year periods; and
          ``(4) contain any terms necessary to ensure aviation safety.
  ``(f) Notice.--Not later than 120 days after the Administrator 
receives a complete application under subsection (d), the Administrator 
shall provide the applicant written notice of a decision to approve or 
disapprove of the application or to request a modification of the 
application that is necessary for approval of the application.
  ``(g) Permitting Process.--The Administrator shall issue a permit 
under this section without regard to subsections (b) through (d) of 
section 553 of title 5 and chapter 35 of title 44 if the Administrator 
determines that the operation permitted will not occur near a congested 
area.
  ``(h) Exemption From Certain Requirements.--To the extent consistent 
with aviation safety, the Administrator may exempt applicants under 
this section from paragraphs (1) through (3) of section 44711(a).
  ``(i) Withdrawal.--The Administrator may, at any time, modify or 
withdraw a permit issued under this section.
  ``(j) Applicability.--This section shall not apply to small unmanned 
aircraft systems and operations authorized by the final rule on small 
unmanned aircraft systems issued pursuant to section 45502(b)(1).
  ``(k) Expedited Review.--The Administrator shall review and act upon 
applications under this section on an expedited basis for unmanned 
aircraft systems and operations thereof to be used primarily in, or 
primarily in direct support of, emergency preparedness, emergency 
response, or disaster recovery efforts, including efforts in connection 
with natural disasters and severe weather events.

``Sec. 45504. Public unmanned aircraft systems

  ``(a) Guidance.--Not later than November 10, 2012, 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 May 14, 2012, 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. 45505. Special rules for certain unmanned aircraft systems

  ``(a) In General.--Notwithstanding any other requirement of this 
subtitle, and not later than August 12, 2012, 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 45502 or the guidance required 
under section 45504.
  ``(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 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. 45506. Certification of new air navigation facilities for 
                    unmanned aircraft and other aircraft

  ``(a) In General.--Not later than 18 months after the date of 
enactment of this section, and notwithstanding section 2208 of the FAA 
Extension, Safety, and Security Act of 2016 (49 U.S.C. 40101 note), the 
Administrator of the Federal Aviation Administration shall initiate a 
rulemaking to establish procedures for issuing air navigation facility 
certificates pursuant to section 44702 to operators of--
          ``(1) UTM for unmanned aircraft operations that occur 
        primarily or exclusively in airspace 400 feet above ground 
        level and below; and
          ``(2) low-altitude CNS for aircraft operations that occur 
        primarily or exclusively in airspace 400 feet above ground 
        level and below.
  ``(b) Minimum Requirements.--In issuing a final rule pursuant to 
subsection (a), the Administrator, at a minimum, shall provide for the 
following:
          ``(1) Certification standards.--The Administrator shall issue 
        an air navigation facility certificate under the final rule if 
        the Administrator determines that a UTM or low-altitude CNS 
        facilitates or improves the safety of unmanned aircraft or 
        other aircraft operations that occur primarily or exclusively 
        in airspace 400 feet above ground level and below, including 
        operations conducted under a waiver issued pursuant to subpart 
        D of part 107 of title 14, Code of Federal Regulations.
          ``(2) Criteria for consideration.--In determining whether a 
        UTM or low-altitude CNS meets the standard described in 
        paragraph (1), the Administrator shall, as appropriate, 
        consider--
                  ``(A) protection of persons and property on the 
                ground;
                  ``(B) remote identification of aircraft;
                  ``(C) collision avoidance with respect to obstacles 
                and aircraft;
                  ``(D) deconfliction of aircraft trajectories;
                  ``(E) safe and reliable interoperability or 
                noninterference with air traffic control and other 
                systems operated in the national airspace system;
                  ``(F) detection of noncooperative aircraft;
                  ``(G) geographic and local factors;
                  ``(H) aircraft equipage; and
                  ``(I) qualifications, if any, necessary to operate 
                the UTM or low-altitude CNS.
          ``(3) Application.--An application for an air navigation 
        facility certificate under the final rule shall include 
        evidence that the UTM or low-altitude CNS meets the standard 
        described in paragraph (1) based on the criteria described in 
        paragraph (2).
          ``(4) Scope of certificate.--The Administrator shall ensure 
        that an air navigation facility certificate issued under the 
        final rule--
                  ``(A) constitutes approval of the UTM or low-altitude 
                CNS for the duration of the term of the certificate;
                  ``(B) constitutes authorization to operate the UTM or 
                low-altitude CNS for the duration of the term of the 
                certificate; and
                  ``(C) contains such limitations and conditions as may 
                be necessary to ensure aviation safety.
          ``(5) Notice.--Not later than 120 days after the 
        Administrator receives a complete application under the final 
        rule, the Administrator shall provide the applicant with a 
        written approval, disapproval, or request to modify the 
        application.
          ``(6) Low risk areas.--Under the final rule, the 
        Administrator shall establish expedited procedures for approval 
        of UTM or low-altitude CNS operated in--
                  ``(A) airspace away from congested areas; or
                  ``(B) other airspace above areas in which operations 
                of unmanned aircraft pose very low risk.
          ``(7) Exemption from certain requirements.--To the extent 
        consistent with aviation safety, the Administrator may exempt 
        applicants under the final rule from requirements under 
        sections 44702, 44703, and 44711.
          ``(8) Certificate modifications and revocations.--A 
        certificate issued under the final rule may, at any time, be 
        modified or revoked by the Administrator.
  ``(c) Consultation.--In carrying out this section, the Administrator 
shall consult with other Federal agencies, as appropriate.

``Sec. 45507. Special rules for certain UTM and low-altitude CNS

  ``(a) In General.--Notwithstanding any other requirement of this 
chapter, and not later than 120 days after the date of enactment of 
this section, the Secretary of Transportation shall determine if 
certain UTM and low-altitude CNS may operate safely in the national 
airspace system before completion of the rulemaking required by section 
45506.
  ``(b) Assessment of UTM and Low-Altitude CNS.--In making the 
determination under subsection (a), the Secretary shall determine, at a 
minimum, which types of UTM and low-altitude CNS, if any, as a result 
of their operational capabilities, reliability, intended use, and areas 
of operation, and the characteristics of the aircraft involved, do not 
create a hazard to users of the national airspace system or the public.
  ``(c) Requirements for Safe Operation.--If the Secretary determines 
that certain UTM and low-altitude CNS may operate safely in the 
national airspace system, the Secretary shall establish requirements 
for their safe operation in the national airspace system.
  ``(d) Expedited Procedures.--The Secretary shall provide expedited 
procedures for reviewing and approving UTM or low-altitude CNS operated 
to monitor or control aircraft operated primarily or exclusively in 
airspace above--
          ``(1) croplands;
          ``(2) areas other than congested areas; and
          ``(3) other areas in which the operation of unmanned aircraft 
        poses very low risk.
  ``(e) Consultation.--In carrying out this section, the Administrator 
shall consult with other Federal agencies, as appropriate.

``Sec. 45508. Operation of small unmanned aircraft

  ``(a) Exemption and Certificate of Waiver or Authorization for 
Certain Operations.--Not later than 270 days after the date of 
enactment of this section, the Administrator of the Federal Aviation 
Administration shall establish a procedure for granting an exemption 
and issuing a certificate of waiver or authorization for the operation 
of a small unmanned aircraft system in United States airspace for the 
purposes described in section 45501(1).
  ``(b) Operation of Exemption and Certificate of Waiver or 
Authorization.--
          ``(1) Exemption.--An exemption granted under this section 
        shall--
                  ``(A) exempt the operator of a small unmanned 
                aircraft from the provisions of title 14, Code of 
                Federal Regulations, that are exempted in Exemption No. 
                11687, issued on May 26, 2015, Regulatory Docket Number 
                FAA-2015-0117, or in a subsequent exemption; and
                  ``(B) contain conditions and limitations described in 
                paragraphs 3 through 31 of such Exemption No. 11687, or 
                conditions and limitations of a subsequent exemption.
          ``(2) Certificate of waiver or authorization.--A certificate 
        of waiver or authorization issued under this section shall 
        allow the operation of small unmanned aircraft according to--
                  ``(A) the standard provisions and air traffic control 
                special provisions of the certificate of waiver or 
                authorization FAA Form 7711-1 (7-74); or
                  ``(B) the standard and special provisions of a 
                subsequent certificate of waiver or authorization.
  ``(c) Notice to Administrator.--Before operating a small unmanned 
aircraft pursuant to a certificate of waiver or authorization granted 
under this section, the operator shall provide written notice to the 
Administrator, in a form and manner specified by the Administrator, 
that contains such information and assurances as the Administrator 
determines necessary in the interest of aviation safety and the 
efficiency of the national airspace system, including a certification 
that the operator has read, understands, and will comply with all 
terms, conditions, and limitations of the certificate of waiver or 
authorization.
  ``(d) Waiver of Airworthiness Certificate.--Notwithstanding section 
44711(a)(1), the holder of a certificate of waiver or authorization 
granted under this section may operate a small unmanned aircraft under 
the terms, conditions, and limitations of such certificate without an 
airworthiness certificate.
  ``(e) Procedure.--The granting of an exemption or the issuance of a 
certificate of waiver or authorization, or any other action authorized 
by this section, shall be made without regard to--
          ``(1) section 553 of title 5; or
          ``(2) chapter 35 of title 44.
  ``(f) Statutory Construction.--Nothing in this section may be 
construed to--
          ``(1) affect the issuance of a rule by or any other activity 
        of the Secretary of Transportation or the Administrator under 
        any other provision of law; or
          ``(2) invalidate an exemption or certificate of waiver or 
        authorization issued by the Administrator before the date of 
        enactment of this section.
  ``(g) Effective Periods.--An exemption or certificate of waiver or 
authorization issued under this section, or an amendment of such 
exemption or certificate, shall cease to be valid on the effective date 
of a final rule on small unmanned aircraft systems issued under section 
45502(b)(1).

``Sec. 45509. Special rules 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 (other than the 
registration of certain model aircraft pursuant to section 44103), 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 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;
          ``(5) the aircraft is not operated over or within the 
        property of a fixed site facility that operates amusement rides 
        available for use by the general public or the property 
        extending 500 lateral feet beyond the perimeter of such 
        facility unless the operation is authorized by the owner of the 
        amusement facility; and
          ``(6) 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) Commercial Operation for Instructional or Educational 
Purposes.--A flight of an unmanned aircraft shall be treated as a 
flight of a model aircraft for purposes of subsection (a) (regardless 
of any compensation, reimbursement, or other consideration exchanged or 
incidental economic benefit gained in the course of planning, 
operating, or supervising the flight), if the flight is--
          ``(1) conducted for instructional or educational purposes; 
        and
          ``(2) operated or supervised by a member of a community-based 
        organization recognized pursuant to subsection (e).
  ``(c) Statutory Construction.--Nothing in this section may 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.
  ``(d) Community-Based Organization Defined.--In this section, the 
term `community-based organization' means an entity that--
          ``(1) is described in section 501(c)(3) of the Internal 
        Revenue Code of 1986;
          ``(2) is exempt from tax under section 501(a) of the Internal 
        Revenue Code of 1986;
          ``(3) the mission of which is demonstrably the furtherance of 
        model aviation;
          ``(4) provides a comprehensive set of safety guidelines for 
        all aspects of model aviation addressing the assembly and 
        operation of model aircraft and that emphasize safe 
        aeromodeling operations within the national airspace system and 
        the protection and safety of individuals and property on the 
        ground;
          ``(5) provides programming and support for any local charter 
        organizations, affiliates, or clubs; and
          ``(6) provides assistance and support in the development and 
        operation of locally designated model aircraft flying sites.
  ``(e) Recognition of Community-Based Organizations.--Not later than 
180 days after the date of enactment of this section, the Administrator 
shall establish, and make available to the public, a process for 
recognizing community-based organizations that meet the eligibility 
criteria under subsection (d).

``Sec. 45510. Carriage of property for compensation or hire

  ``(a) In General.--Not later than 1 year after the date of enactment 
of this section, the Secretary of Transportation shall issue a final 
rule authorizing the carriage of property by operators of small 
unmanned aircraft systems for compensation or hire within the United 
States.
  ``(b) Contents.--The final rule required under subsection (a) shall 
provide for the following:
          ``(1) Small uas air carrier certificate.--The Administrator 
        of the Federal Aviation Administration, at the direction of the 
        Secretary, shall establish a small UAS air carrier certificate 
        for persons that undertake directly, or by lease or other 
        arrangement, the operation of small unmanned aircraft systems 
        to carry property in air transportation, including commercial 
        fleet operations with highly automated unmanned aircraft 
        systems. The requirements to obtain a small UAS air carrier 
        certificate shall--
                  ``(A) account for the unique characteristics of 
                highly automated small unmanned aircraft systems; and
                  ``(B) include only those obligations necessary for 
                the safe operation of small unmanned aircraft systems.
          ``(2) Small uas air carrier certification process.--The 
        Administrator, at the direction of the Secretary, shall 
        establish a process for the issuance of a small UAS air carrier 
        certificate described in paragraph (1) that is streamlined, 
        simple, performance-based, and risk-based. Such certification 
        process shall consider--
                  ``(A) safety and the mitigation of operational risks 
                from highly automated small unmanned aircraft systems 
                to the safety of other aircraft, and persons and 
                property on the ground;
                  ``(B) the safety and reliability of highly automated 
                small unmanned aircraft system design, including 
                technological capabilities and operational limitations 
                to mitigate such risks; and
                  ``(C) the competencies and compliance programs of 
                manufacturers, operators, and companies that both 
                manufacture and operate small unmanned aircraft systems 
                and components.
          ``(3) Small uas air carrier classification.--The Secretary 
        shall develop a classification system for small unmanned 
        aircraft systems air carriers to establish economic authority 
        for the carriage of property by small unmanned aircraft systems 
        for compensation or hire. Such classification shall only 
        require--
                  ``(A) registration with the Department of 
                Transportation; and
                  ``(B) a valid small UAS air carrier certificate as 
                described in paragraph (1).

``Sec. 45511. Micro UAS operations

  ``(a) In General.--Not later than 60 days after the date of enactment 
of this section, the Administrator of the Federal Aviation 
Administration shall charter an aviation rulemaking advisory committee 
to develop recommendations for regulations under which any person may 
operate a micro unmanned aircraft system, the aircraft component of 
which weighs 4.4 pounds or less, including payload, without the person 
operating the system being required to pass any airman certification 
requirement, including any requirements under section 44703, part 61 of 
title 14, Code of Federal Regulations, or any other rule or regulation 
relating to airman certification.
  ``(b) Considerations.--In developing recommendations for the 
operation of micro unmanned aircraft systems under subsection (a), the 
members of the aviation rulemaking advisory committee shall consider 
rules for operation of such systems--
          ``(1) at an altitude of less than 400 feet above ground 
        level;
          ``(2) with an airspeed of not greater than 40 knots;
          ``(3) within the visual line of sight of the operator;
          ``(4) during the hours between sunrise and sunset;
          ``(5) by an operator who has passed an aeronautical knowledge 
        and safety test administered by the Federal Aviation 
        Administration online specifically for the operation of micro 
        unmanned aircraft systems, with such test being of a length and 
        difficulty that acknowledges the reduced operational complexity 
        and low risk of micro unmanned aircraft systems;
          ``(6) not over unprotected persons uninvolved in its 
        operation; and
          ``(7) at least 5 statute miles from the geographic center of 
        a tower-controlled airport or airport denoted on a current 
        Federal Aviation Administration-published aeronautical chart, 
        except that a micro unmanned aircraft system may be operated 
        closer than 5 statute miles to the airport if the operator--
                  ``(A) provides prior notice to the airport operator; 
                and
                  ``(B) receives, for a tower-controlled airport, prior 
                approval from the air traffic control facility located 
                at the airport.
  ``(c) Consultation.--
          ``(1) In general.--In developing recommendations for 
        recommended regulations under subsection (a), the aviation 
        rulemaking advisory committee shall consult with--
                  ``(A) unmanned aircraft systems stakeholders, 
                including manufacturers of micro unmanned aircraft 
                systems;
                  ``(B) community-based aviation organizations;
                  ``(C) the Center of Excellence for Unmanned Aircraft 
                Systems; and
                  ``(D) appropriate Federal agencies.
          ``(2) FACA.--The Federal Advisory Committee Act (5 U.S.C. 
        App.) shall not apply to an aviation rulemaking advisory 
        committee chartered under this section.
  ``(d) Rulemaking.--Not later than 180 days after the date of receipt 
of the recommendations under subsection (a), the Administrator shall 
issue regulations incorporating recommendations of the aviation 
rulemaking advisory committee that provide for the operation of micro 
unmanned aircraft systems in the United States--
          ``(1) without an airman certificate; and
          ``(2) without an airworthiness certificate for the associated 
        unmanned aircraft.
  ``(e) Scope of Regulations.--
          ``(1) In general.--In determining whether a person may 
        operate an unmanned aircraft system under 1 or more of the 
        circumstances described under paragraphs (1) through (3) of 
        subsection (b), the Administrator shall use a risk-based 
        approach and consider, at a minimum, the physical and 
        functional characteristics of the unmanned aircraft system.
          ``(2) Limitation.--The Administrator may only issue 
        regulations under this section for unmanned aircraft systems 
        that the Administrator determines may be operated safely in the 
        national airspace system pursuant to those regulations.
  ``(f) Rules of Construction.--Nothing in this section may be 
construed--
          ``(1) to prohibit a person from operating an unmanned 
        aircraft system under a circumstance described under paragraphs 
        (1) through (3) of subsection (b) if--
                  ``(A) the circumstance is allowed by regulations 
                issued under this section; and
                  ``(B) the person operates the unmanned aircraft 
                system in a manner prescribed by the regulations; or
          ``(2) to limit or affect in any way the Administrator's 
        authority to conduct a rulemaking, make a determination, or 
        carry out any activity related to unmanned aircraft or unmanned 
        aircraft systems under any other provision of law.''.
  (b) Conforming Amendments.--
          (1) Repeals.--
                  (A) In general.--Sections 332(a), 332(b), 332(d), 
                333, 334, and 336 of the FAA Modernization and Reform 
                Act of 2012 (49 U.S.C. 40101 note) are repealed.
                  (B) Clerical amendment.--The items relating to 
                sections 333, 334, and 336 of the FAA Modernization and 
                Reform Act of 2012 (49 U.S.C. 40101 note) in the table 
                of contents contained in section 1(b) of that Act are 
                repealed.
          (2) Penalties.--Section 46301 of title 49, United States 
        Code, is amended--
                  (A) in subsection (a)--
                          (i) in paragraph (1)(A) by inserting 
                        ``chapter 455,'' after ``chapter 451,''; and
                          (ii) in paragraph (5)(A)(i) by striking ``or 
                        chapter 451,'' and inserting ``chapter 451, 
                        chapter 455,'';
                  (B) in subsection (d)(2) by inserting ``chapter 
                455,'' after ``chapter 451,''; and
                  (C) in subsection (f)(1)(A)(i) by striking ``or 
                chapter 451'' and inserting ``chapter 451, or chapter 
                455''.
          (3) Clerical amendment.--The analysis for subtitle VII of 
        title 49, United States Code, is amended by inserting after the 
        item relating to chapter 453 the following:

``455. Unmanned aircraft systems............................   45501''.

SEC. 433. UNMANNED AIRCRAFT TEST RANGES.

  (a) Extension of Program.--Section 332(c)(1) of the FAA Modernization 
and Reform Act of 2012 (49 U.S.C. 40101 note) is amended by striking 
``September 30, 2019'' and inserting ``the date that is 6 years after 
the date of enactment of the 21st Century AIRR Act''.
  (b) Sense-and-Avoid and Beyond Line of Sight Systems at Test 
Ranges.--
          (1) In general.--To the extent consistent with aviation 
        safety, the Administrator of the Federal Aviation 
        Administration shall permit and encourage flights of unmanned 
        aircraft equipped with sense-and-avoid and beyond line of sight 
        systems at the 6 test ranges designated under section 332(c) of 
        the FAA Modernization and Reform Act of 2012.
          (2) Waivers.--In carrying out paragraph (1), the 
        Administrator may waive the requirements of section 44711 of 
        title 49, United States Code, including related regulations, to 
        the extent consistent with aviation safety.
  (c)  Test Range Defined.--In this section, the term ``test range'' 
means a defined geographic area where research and development are 
conducted.

SEC. 434. SENSE OF CONGRESS REGARDING UNMANNED AIRCRAFT SAFETY.

  It is the sense of Congress that--
          (1) the unauthorized operation of unmanned aircraft near 
        airports presents a serious hazard to aviation safety;
          (2) a collision between an unmanned aircraft and a 
        conventional aircraft in flight could jeopardize the safety of 
        persons aboard the aircraft and on the ground;
          (3) Federal aviation regulations, including sections 91.126 
        through 91.131 of title 14, Code of Federal Regulations, 
        prohibit unauthorized operation of an aircraft in controlled 
        airspace near an airport;
          (4) Federal aviation regulations, including section 91.13 of 
        title 14, Code of Federal Regulations, prohibit the operation 
        of an aircraft in a careless or reckless manner so as to 
        endanger the life or property of another;
          (5) the Administrator of the Federal Aviation Administration 
        should pursue all available civil and administrative remedies 
        available to the Administrator, including referrals to other 
        government agencies for criminal investigations, with respect 
        to persons who operate unmanned aircraft in an unauthorized 
        manner;
          (6) the Administrator should place particular priority on 
        continuing measures, including partnerships with 
        nongovernmental organizations, to educate the public about the 
        dangers to the public safety of operating unmanned aircraft 
        near airports without the appropriate approvals or 
        authorizations; and
          (7) manufacturers and retail sellers of small unmanned 
        aircraft systems should take steps to educate consumers about 
        the safe and lawful operation of such systems.

SEC. 435. UAS PRIVACY REVIEW.

  (a) Review.--The Secretary of Transportation, in consultation with 
the heads of appropriate Federal agencies, appropriate State and local 
officials, and subject-matter experts and in consideration of relevant 
efforts led by the National Telecommunications and Information 
Administration, shall carry out a review to identify any potential 
reduction of privacy specifically caused by the integration of unmanned 
aircraft systems into the national airspace system.
  (b) Consultation.--In carrying out the review, the Secretary shall 
consult with the National Telecommunications and Information 
Administration of the Department of Commerce on its ongoing efforts 
responsive to the Presidential memorandum titled ``Promoting Economic 
Competitiveness While Safeguarding Privacy, Civil Rights, and Civil 
Liberties in Domestic Use of Unmanned Aircraft Systems'' and dated 
February 15, 2015.
  (c) Report.--Not later than 180 days after the date of enactment of 
this Act, 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 review required under subsection (a).

SEC. 436. PUBLIC UAS OPERATIONS BY TRIBAL GOVERNMENTS.

  (a) Public UAS Operations by Tribal Governments.--Section 
40102(a)(41) of title 49, United States Code, is amended by adding at 
the end the following:
                  ``(F) An unmanned aircraft that is owned and operated 
                by, or exclusively leased for at least 90 continuous 
                days by, an Indian Tribal government, as defined in 
                section 102 of the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5122), except 
                as provided in section 40125(b).''.
  (b) Conforming Amendment.--Section 40125(b) of title 49, United 
States Code, is amended by striking ``or (D)'' and inserting ``(D), or 
(F)''.

SEC. 437. EVALUATION OF AIRCRAFT REGISTRATION FOR SMALL UNMANNED 
                    AIRCRAFT.

  (a) Metrics.--Beginning not later than 180 days after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration shall develop and track metrics to assess compliance 
with and effectiveness of the registration of small unmanned aircraft 
systems by the Federal Aviation Administration pursuant to the interim 
final rule issued on December 16, 2015, entitled ``Registration and 
Marking Requirements for Small Unmanned Aircraft'' (80 Fed. Reg. 78593) 
and any subsequent final rule, including metrics with respect to--
          (1) the levels of compliance with the interim final rule and 
        any subsequent final rule;
          (2) the number of enforcement actions taken by the 
        Administration for violations of or noncompliance with the 
        interim final rule and any subsequent final rule, together with 
        a description of the actions; and
          (3) the effect of the interim final rule and any subsequent 
        final rule on compliance with any fees associated with the use 
        of small unmanned aircraft systems.
  (b) Evaluation.--The Inspector General of the Department of 
Transportation shall evaluate--
          (1) the Administration's progress in developing and tracking 
        the metrics set forth in subsection (a); and
          (2) the reliability, effectiveness, and efficiency of the 
        Administration's registration program for small unmanned 
        aircraft.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Inspector General of the Department of Transportation 
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--
          (1) the results of the evaluation required under subsection 
        (b); and
          (2) recommendations to the Administrator and Congress for 
        improvements to the registration process for small unmanned 
        aircraft.

SEC. 438. STUDY ON ROLES OF GOVERNMENTS RELATING TO LOW-ALTITUDE 
                    OPERATION OF SMALL UNMANNED AIRCRAFT.

  (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Inspector General of the Department of Transportation 
shall initiate a study on--
          (1) the regulation and oversight of the low-altitude 
        operations of small unmanned aircraft and small unmanned 
        aircraft systems; and
          (2) the appropriate roles and responsibilities of Federal, 
        State, local, and Tribal governments in regulating and 
        overseeing the operations of small unmanned aircraft in 
        airspace 400 feet above ground level and below.
  (b) Considerations.--In carrying out the study, the Inspector General 
shall consider, at a minimum--
          (1) the recommendations of Task Group 1 of the Drone Advisory 
        Committee chartered by the Federal Aviation Administration on 
        August 31, 2016;
          (2) the legal and policy requirements necessary for the safe 
        and financially viable development and growth of the unmanned 
        aircraft industry;
          (3) the interests of Federal, State, local, and Tribal 
        governments affected by low-altitude operations of small 
        unmanned aircraft;
          (4) the existing authorities of Federal, State, local, and 
        Tribal governments to protect the interests referenced in 
        paragraph (3);
          (5) the degree of regulatory consistency required for the 
        safe and financially viable growth and development of the 
        unmanned aircraft industry;
          (6) the degree of local variance possible among regulations 
        consistent with the safe and financially viable growth and 
        development of the unmanned aircraft industry;
          (7) the appropriate roles of State, local, and Tribal 
        governments in regulating the operations of small unmanned 
        aircraft within the lateral boundaries of their jurisdiction in 
        the categories of airspace described in subsection (a)(2);
          (8) the subjects and types of regulatory authority that 
        should remain with the Federal Government;
          (9) the infrastructure requirements necessary for monitoring 
        the low-altitude operations of small unmanned aircraft and 
        enforcing applicable laws;
          (10) the number of small businesses involved in the various 
        sectors of the unmanned aircraft industry and operating as 
        primary users of small unmanned aircraft; and
          (11) any best practices, lessons learned, or policies of 
        jurisdictions outside the United States relating to local or 
        regional regulation and oversight of small unmanned aircraft 
        and other emergent technologies.
  (c) Report to Congress.--Not later than 180 days after initiating the 
study, 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 study.

SEC. 439. STUDY ON FINANCING OF UNMANNED AIRCRAFT SERVICES.

  (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Comptroller General of the United States shall 
initiate a study on appropriate fee mechanisms to recover the costs 
of--
          (1) the regulation and safety oversight of unmanned aircraft 
        and unmanned aircraft systems; and
          (2) the provision of air navigation services to unmanned 
        aircraft and unmanned aircraft systems.
  (b) Considerations.--In carrying out the study, the Comptroller 
General shall consider, at a minimum--
          (1) the recommendations of Task Group 3 of the Drone Advisory 
        Committee chartered by the Federal Aviation Administration on 
        August 31, 2016;
          (2) the total annual costs incurred by the Federal Aviation 
        Administration for the regulation and safety oversight of 
        activities related to unmanned aircraft;
          (3) the annual costs attributable to various types, classes, 
        and categories of unmanned aircraft activities;
          (4) air traffic services provided to unmanned aircraft 
        operating under instrument flight rules, excluding public 
        aircraft;
          (5) the number of full-time Federal Aviation Administration 
        employees dedicated to unmanned aircraft programs;
          (6) the use of privately operated UTM and other privately 
        operated unmanned aircraft systems;
          (7) the projected growth of unmanned aircraft operations for 
        various applications and the estimated need for regulation, 
        oversight, and other services;
          (8) the number of small businesses involved in the various 
        sectors of the unmanned aircraft industry and operating as 
        primary users of unmanned aircraft; and
          (9) any best practices or policies utilized by jurisdictions 
        outside the United States relating to partial or total recovery 
        of regulation and safety oversight costs related to unmanned 
        aircraft and other emergent technologies.
  (c) Report to Congress.--Not later than 180 days after initiating the 
study, 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 containing recommendations on appropriate fee mechanisms to 
recover the costs of regulating and providing air navigation services 
to unmanned aircraft and unmanned aircraft systems.

SEC. 440. UPDATE OF FAA COMPREHENSIVE PLAN.

  (a) In General.--Not later than 270 days after the date of enactment 
of this Act, the Secretary of Transportation shall update the 
comprehensive plan required by section 332 of the FAA Modernization and 
Reform Act of 2012 (49 U.S.C. 40101 note) to develop a concept of 
operations for the integration of unmanned aircraft into the national 
airspace system.
  (b) Considerations.--In carrying out the update, the Secretary shall 
consider, at a minimum--
          (1) the potential use of UTM and other technologies to ensure 
        the safe and lawful operation of unmanned aircraft in the 
        national airspace system;
          (2) the appropriate roles, responsibilities, and authorities 
        of government agencies and the private sector in identifying 
        and reporting unlawful or harmful operations and operators of 
        unmanned aircraft;
          (3) the use of models, threat assessments, probabilities, and 
        other methods to distinguish between lawful and unlawful 
        operations of unmanned aircraft; and
          (4) appropriate systems, training, intergovernmental 
        processes, protocols, and procedures to mitigate risks and 
        hazards posed by unlawful or harmful operations of unmanned 
        aircraft systems.
  (c) Consultation.--The Secretary shall carry out the update 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.

SEC. 441. COOPERATION RELATED TO CERTAIN COUNTER-UAS TECHNOLOGY.

  In matters relating to the use of systems in the national airspace 
system intended to mitigate threats posed by errant or hostile unmanned 
aircraft system operations, the Secretary of Transportation shall 
consult with the Secretary of Defense to streamline deployment of such 
systems by drawing upon the expertise and experience of the Department 
of Defense in acquiring and operating such systems consistent with the 
safe and efficient operation of the national airspace system.

                   TITLE V--AIR SERVICE IMPROVEMENTS

           Subtitle A--Airline Customer Service Improvements

SEC. 501. RELIABLE AIR SERVICE IN AMERICAN SAMOA.

  Section 40109(g) of title 49, United States Code, is amended--
          (1) in paragraph (2) by striking subparagraph (C) and 
        inserting the following:
          ``(C) review the exemption at least every 30 days (or, in the 
        case of an exemption that is necessary to provide and sustain 
        air transportation in American Samoa between the islands of 
        Tutuila and Manu'a, at least every 180 days) to ensure that the 
        unusual circumstances that established the need for the 
        exemption still exist.''; and
          (2) by striking paragraph (3) and inserting the following:
          ``(3) Renewal of exemptions.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), the Secretary may renew an exemption (including 
                renewals) under this subsection for not more than 30 
                days.
                  ``(B) Exception.--The Secretary may renew an 
                exemption (including renewals) under this subsection 
                that is necessary to provide and sustain air 
                transportation in American Samoa between the islands of 
                Tutuila and Manu'a for not more than 180 days.
          ``(4) Continuation of exemptions.--An exemption granted by 
        the Secretary under this subsection may continue for not more 
        than 5 days after the unusual circumstances that established 
        the need for the exemption cease.''.

SEC. 502. CELL PHONE VOICE COMMUNICATION BAN.

  (a) In General.--Subchapter I of chapter 417 of title 49, United 
States Code, is amended by adding at the end the following:

``Sec. 41725. Prohibition on certain cell phone voice communications

  ``(a) Prohibition.--The Secretary of Transportation shall issue 
regulations--
          ``(1) to prohibit an individual on an aircraft from engaging 
        in voice communications using a mobile communications device 
        during a flight of that aircraft in scheduled passenger 
        interstate or intrastate air transportation; and
          ``(2) that exempt from the prohibition described in paragraph 
        (1) any--
                  ``(A) member of the flight crew on duty on an 
                aircraft;
                  ``(B) flight attendant on duty on an aircraft; and
                  ``(C) Federal law enforcement officer acting in an 
                official capacity.
  ``(b) Definitions.--In this section, the following definitions apply:
          ``(1) Flight.--The term `flight' means, with respect to an 
        aircraft, the period beginning when the aircraft takes off and 
        ending when the aircraft lands.
          ``(2) Mobile communications device.--
                  ``(A) In general.--The term `mobile communications 
                device' means any portable wireless telecommunications 
                equipment utilized for the transmission or reception of 
                voice data.
                  ``(B) Limitation.--The term `mobile communications 
                device' does not include a phone installed on an 
                aircraft.''.
  (b) Clerical Amendment.--The analysis for chapter 417 of title 49, 
United States Code, is amended by inserting after the item relating to 
section 41724 the following:

``41725. Prohibition on certain cell phone voice communications.''.

SEC. 503. ADVISORY COMMITTEE FOR AVIATION CONSUMER PROTECTION.

  Section 411 of the FAA Modernization and Reform Act of 2012 (49 
U.S.C. 42301 prec. note) is amended--
          (1) in subsection (b)--
                  (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                  (B) by inserting after paragraph (2) the following:
          ``(3) independent distributors of travel;'';
          (2) in subsection (g) by striking ``first 2 calendar years'' 
        and inserting ``first 6 calendar years''; and
          (3) in subsection (h) by striking ``September 30, 2017'' and 
        inserting ``September 30, 2023''.

SEC. 504. IMPROVED NOTIFICATION OF INSECTICIDE USE.

  Section 42303(b) of title 49, United States Code, is amended to read 
as follows:
  ``(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 website 
established under subsection (a) shall--
          ``(1) disclose, on its own internet website or through other 
        means, that the destination country may require the air carrier 
        or foreign air carrier to treat an aircraft passenger cabin 
        with insecticides prior to the flight or to apply an aerosol 
        insecticide in an aircraft cabin used for such a flight when 
        the cabin is occupied with passengers; and
          ``(2) refer the purchaser of the ticket to the internet 
        website established under subsection (a) for additional 
        information.''.

SEC. 505. ADVERTISEMENTS AND DISCLOSURE OF FEES FOR PASSENGER AIR 
                    TRANSPORTATION.

  (a) Full Fare Advertising.--
          (1) In general.--Section 41712 of title 49, United States 
        Code, is amended by adding at the end the following:
  ``(d) Full Fare Advertising.--
          ``(1) In general.--It shall not be an unfair or deceptive 
        practice under subsection (a) for a covered entity to state in 
        an advertisement or solicitation for passenger air 
        transportation the base airfare for the air transportation if 
        the covered entity clearly and separately discloses--
                  ``(A) the government-imposed fees and taxes 
                associated with the air transportation; and
                  ``(B) the total cost of the air transportation.
          ``(2) Form of disclosure.--
                  ``(A) In general.--For purposes of paragraph (1), the 
                information described in paragraphs (1)(A) and (1)(B) 
                shall be disclosed in the advertisement or solicitation 
                in a manner that clearly presents the information to 
                the consumer.
                  ``(B) Internet advertisements and solicitations.--For 
                purposes of paragraph (1), with respect to an 
                advertisement or solicitation for passenger air 
                transportation that appears on an internet website or a 
                mobile application, the information described in 
                paragraphs (1)(A) and (1)(B) may be disclosed through a 
                link or pop-up, as such terms may be defined by the 
                Secretary, that displays the information in a manner 
                that is easily accessible and viewable by the consumer.
          ``(3) Definitions.--In this subsection, the following 
        definitions apply:
                  ``(A) Base airfare.--The term `base airfare' means 
                the cost of passenger air transportation, excluding 
                government-imposed fees and taxes.
                  ``(B) Covered entity.--The term `covered entity' 
                means an air carrier, including an indirect air 
                carrier, foreign air carrier, ticket agent, or other 
                person offering to sell tickets for passenger air 
                transportation or a tour or tour component that must be 
                purchased with air transportation.''.
          (2) Limitation on statutory construction.--Nothing in the 
        amendment made by paragraph (1) may be construed to affect any 
        obligation of a person that sells air transportation to 
        disclose the total cost of the air transportation, including 
        government-imposed fees and taxes, prior to purchase of the air 
        transportation.
          (3) Regulations.--Not later than 120 days after the date of 
        enactment of this Act, the Secretary of Transportation shall 
        issue final regulations to carry out the amendment made by 
        paragraph (1).
          (4) Effective date.--This subsection, and the amendments made 
        by this subsection, shall take effect on the earlier of--
                  (A) the effective date of regulations issued under 
                paragraph (3); and
                  (B) the date that is 180 days after the date of 
                enactment of this Act.
  (b) Disclosure of Fees.--Section 41712 of title 49, United States 
Code, as amended by this section, is further amended by adding at the 
end the following:
  ``(e) Disclosure of Fees.--
          ``(1) In general.--It shall be an unfair or deceptive 
        practice under subsection (a) for any air carrier, foreign air 
        carrier, or ticket agent to fail to include, in an internet 
        fare quotation for a specific itinerary in air transportation 
        selected by a consumer--
                  ``(A) a clear and prominent statement that additional 
                fees for checked baggage and carry-on baggage may 
                apply; and
                  ``(B) a prominent link that connects directly to a 
                list of all such fees.
          ``(2) Savings provision.--Nothing in this subsection may be 
        construed to derogate or limit any responsibilities of an air 
        carrier, foreign air carrier, or ticket agent under section 
        399.85 of title 14, Code of Federal Regulations, or any 
        successor provision.''.

SEC. 506. INVOLUNTARILY BUMPING PASSENGERS AFTER AIRCRAFT BOARDED.

  Section 41712 of title 49, United States Code, as amended by this 
Act, is further amended by adding at the end the following:
  ``(f) Involuntarily Denied Boarding After Aircraft Boarded.--
          ``(1) In general.--It shall be an unfair or deceptive 
        practice under subsection (a) for an air carrier or foreign air 
        carrier subject to part 250 of title 14, Code of Federal 
        Regulations, to involuntarily deplane a revenue passenger 
        onboard an aircraft, if the revenue passenger--
                  ``(A) is traveling on a confirmed reservation; and
                  ``(B) checked-in for the relevant flight prior to the 
                check-in deadline.
          ``(2) Savings provision.--Nothing in this subsection may be 
        construed to limit the authority of an air carrier, foreign air 
        carrier, or airman to remove a passenger in accordance with--
                  ``(A) section 91.3, 121.533(d), or 121.580 of title 
                14, Code of Federal Regulations, or any successor 
                provision; or
                  ``(B) any other applicable Federal, State, or local 
                law.''.

SEC. 507. AVAILABILITY OF CONSUMER RIGHTS INFORMATION.

  Section 42302(b) of title 49, United States Code, is amended--
          (1) in the matter preceding paragraph (1) by striking ``on 
        the'' and inserting ``in a prominent place on the homepage of 
        the primary'';
          (2) in paragraph (2) by striking ``and'' at the end;
          (3) in paragraph (3) by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following:
          ``(4) the air carrier's customer service plan.''.

SEC. 508. CONSUMER COMPLAINTS HOTLINE.

  Section 42302 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(d) Use of New Technologies.--The Secretary shall periodically 
evaluate the benefits of using mobile phone applications or other 
widely used technologies to provide new means for air passengers to 
communicate complaints in addition to the telephone number established 
under subsection (a) and shall provide such new means as the Secretary 
determines appropriate.''.

SEC. 509. WIDESPREAD DISRUPTIONS.

  (a) In General.--Chapter 423 of title 49, United States Code, is 
amended by adding at the end the following:

``Sec. 42304. Widespread disruptions

  ``(a) General Requirements.--In the event of a widespread disruption, 
a covered air carrier shall immediately publish, via a prominent link 
on the air carrier's public internet website, a clear statement 
indicating whether, with respect to a passenger of the air carrier 
whose travel is interrupted as a result of the widespread disruption, 
the air carrier will--
          ``(1) provide for hotel accommodations;
          ``(2) arrange for ground transportation;
          ``(3) provide meal vouchers;
          ``(4) arrange for air transportation on another air carrier 
        or foreign air carrier to the passenger's destination; and
          ``(5) provide for sleeping facilities inside the airport 
        terminal.
  ``(b) Definitions.--In this section, the following definitions apply:
          ``(1) Widespread disruption.--The term `widespread 
        disruption' means, with respect to a covered air carrier, the 
        interruption of all or the overwhelming majority of the air 
        carrier's systemwide flight operations, including flight delays 
        and cancellations, as the result of the failure of 1 or more 
        computer systems or computer networks of the air carrier.
          ``(2) Covered air carrier.--The term `covered air carrier' 
        means an air carrier that provides scheduled passenger air 
        transportation by operating an aircraft that as originally 
        designed has a passenger capacity of 30 or more seats.
  ``(c) Savings Provision.--Nothing in this section may be construed to 
modify, abridge, or repeal any obligation of an air carrier under 
section 42301.''.
  (b) Conforming Amendment.--The analysis for chapter 423 of title 49, 
United States Code, is amended by adding at the end the following:

``42304. Widespread disruptions.''.

SEC. 510. INVOLUNTARILY DENIED BOARDING COMPENSATION.

  Not later than 60 days after the date of enactment of this Act, the 
Secretary of Transportation shall issue a final rule to revise part 250 
of title 14, Code of Federal Regulations, to clarify that--
          (1) there is not a maximum level of compensation an air 
        carrier or foreign air carrier may pay to a passenger who is 
        involuntarily denied boarding as the result of an oversold 
        flight;
          (2) the compensation levels set forth in that part are the 
        minimum levels of compensation an air carrier or foreign air 
        carrier must pay to a passenger who is involuntarily denied 
        boarding as the result of an oversold flight; and
          (3) an air carrier or foreign air carrier must proactively 
        offer to pay compensation to a passenger who is voluntarily or 
        involuntarily denied boarding on an oversold flight, rather 
        than waiting until the passenger requests the compensation.

SEC. 511. CONSUMER INFORMATION ON ACTUAL FLIGHT TIMES.

  (a) Study.--The Secretary of Transportation shall conduct a study on 
the feasibility and advisability of modifying regulations contained in 
section 234.11 of title 14, Code of Federal Regulations, to ensure 
that--
          (1) a reporting carrier (including its contractors), during 
        the course of a reservation or ticketing discussion or other 
        inquiry, discloses to a consumer upon reasonable request the 
        projected period between the actual wheels-off and wheels-on 
        times for a reportable flight; and
          (2) a reporting carrier displays, on the public internet 
        website of the carrier, information on the actual wheels-off 
        and wheels-on times during the most recent calendar month for a 
        reportable flight.
  (b) Definitions.--In this section, the terms ``reporting carrier'' 
and ``reportable flight'' have the meanings given those terms in 
section 234.2 of title 14, Code of Federal Regulations (as in effect on 
the date of enactment of this Act).
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, 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.

SEC. 512. ADVISORY COMMITTEE FOR TRANSPARENCY IN AIR AMBULANCE 
                    INDUSTRY.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Transportation shall establish an 
advisory committee to make recommendations for a rulemaking--
          (1) to require air ambulance operators to clearly disclose 
        charges for air transportation services separately from charges 
        for non-air transportation services within any invoice or bill; 
        and
          (2) to provide other consumer protections for customers of 
        air ambulance operators.
  (b) Composition of the Advisory Committee.--The advisory committee 
shall be composed of the following members:
          (1) The Secretary of Transportation.
          (2) 1 representative, to be appointed by the Secretary, of 
        each of the following:
                  (A) Each relevant Federal agency, as determined by 
                the Secretary.
                  (B) Air ambulance operators.
                  (C) State insurance regulators.
                  (D) Health insurance providers.
                  (E) Consumer groups.
  (c) Recommendations.--The advisory committee shall make 
recommendations with respect to each of the following:
          (1) Cost-allocation methodologies needed to ensure that 
        charges for air transportation services are separated from 
        charges for non-air transportation services.
          (2) Cost- or price-allocation methodologies to prevent 
        commingling of charges for air transportation services and 
        charges for non-air transportation services in bills and 
        invoices.
          (3) Formats for bills and invoices to ensure that customers 
        and State insurance regulators can clearly distinguish between 
        charges for air transportation services and charges for non-air 
        transportation services.
          (4) Data or industry references related to aircraft operating 
        costs to be used in determining the proper allocation of 
        charges for air transportation services and charges for non-air 
        transportation services.
          (5) Guidance materials to instruct States, political 
        subdivisions of States, and political authorities of 2 or more 
        States on referring to the Secretary allegations of unfair or 
        deceptive practices or unfair methods of competition by air 
        ambulance operators.
          (6) Protections for customers of air ambulance operators, 
        after consideration of the circumstances in which the services 
        of air ambulance operators are used.
          (7) Protections of proprietary cost data from inappropriate 
        public disclosure.
          (8) Such other matters as the Secretary determines necessary 
        or appropriate.
  (d) Report.--Not later than 180 days after the date of the first 
meeting of the advisory committee, the advisory committee shall submit 
to the Secretary, 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 
recommendations made under subsection (c).
  (e) Rulemaking.--Not later than 180 days after the date of receipt of 
the report under subsection (d), the Secretary shall consider the 
recommendations of the advisory committee and issue a final rule--
          (1) to require air ambulance operators to clearly disclose 
        charges for air transportation services separately from charges 
        for non-air transportation services within any invoice or bill; 
        and
          (2) to provide other consumer protections for customers of 
        air ambulance operators.
  (f) Definitions.--In this section, the following definitions apply:
          (1) Air ambulance operator.--The term ``air ambulance 
        operator'' means an air carrier operating pursuant to part 135 
        of title 14, Code of Federal Regulations, that provides 
        medical, ambulance, or related services.
          (2) Non-air transportation services.--The term ``non-air 
        transportation services'' means those services provided by air 
        ambulance operators but not other air carriers operating 
        pursuant to part 135 of title 14, Code of Federal Regulations.
  (g) Termination.--The advisory committee shall terminate on the date 
of submission of the report under subsection (d).
  (h) Nature of Air Ambulance Services.--The non-air transportation 
services of air ambulance operators and prices thereof are neither 
services nor prices of an air carrier for purposes of section 41713 of 
title 49, United States Code.

SEC. 513. AIR AMBULANCE COMPLAINTS.

  (a) Consumer Complaints.--Section 42302 of title 49, United States 
Code, is amended--
          (1) in subsection (a) by inserting ``(including 
        transportation by air ambulance)'' after ``air 
        transportation'';
          (2) in subsection (b)--
                  (A) in the matter preceding paragraph (1)--
                          (i) by inserting ``, and an air ambulance 
                        operator,'' after ``passenger seats''; and
                          (ii) by inserting ``or operator'' after 
                        ``Internet Web site of the carrier''; and
                  (B) in paragraph (2) by inserting ``or operator'' 
                after ``mailing address of the air carrier''; and
          (3) by striking subsection (c) and inserting the following:
  ``(c) Notice to Passengers on Boarding or Billing Documentation.--
          ``(1) Air carriers and foreign air carriers.--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--
                  ``(A) prominently displayed signs of the carrier at 
                the airport ticket counters in the United States where 
                the air carrier operates; and
                  ``(B) any electronic confirmation of the purchase of 
                a passenger ticket for air transportation issued by the 
                air carrier.
          ``(2) Air ambulance operators.--An air ambulance operator 
        shall include the hotline telephone number established under 
        subsection (a) on any invoice, bill, or other communication 
        provided to a passenger or customer of the operator.''.
  (b) Unfair and Deceptive Practices and Unfair Methods of 
Competition.--Section 41712(a) of title 49, United States Code, is 
amended--
          (1) by inserting ``air ambulance customer,'' after ``foreign 
        air carrier,'' the first place it appears; and
          (2) by adding at the end the following: ``In this subsection, 
        the term `air carrier' includes an air ambulance operator and 
        the term `air transportation' includes any transportation 
        provided by an air ambulance.''.

SEC. 514. PASSENGER RIGHTS.

  (a) Guidelines.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Transportation shall require each air 
carrier to submit for approval a 1-page document that accurately 
describes the rights of passengers in air transportation, including 
guidelines for the following:
          (1) Compensation (regarding rebooking options, refunds, 
        meals, and lodging) for flight delays of various lengths.
          (2) Compensation (regarding rebooking options, refunds, 
        meals, and lodging) for flight cancellations.
          (3) Compensation for mishandled baggage, including delayed, 
        damaged, pilfered, or lost baggage.
          (4) Voluntary relinquishment of a ticketed seat due to 
        overbooking or priority of other passengers.
          (5) Involuntary denial of boarding and forced removal for 
        whatever reason, including for safety and security reasons.
  (b) Approval of Guidelines.--Not later than 90 days after each air 
carrier submits its guidelines for approval to the Secretary under 
subsection (a), the air carrier shall make available such 1-page 
document on its website.

            Subtitle B--Aviation Consumers With Disabilities

SEC. 541. SELECT SUBCOMMITTEE.

  Section 411 of the FAA Modernization and Reform Act of 2012 (49 
U.S.C. 42301 prec. note), as amended by this Act, is further amended--
          (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
          (2) by inserting after subsection (f) the following:
  ``(g) Select Subcommittee for Aviation Consumers With Disabilities.--
          ``(1) In general.--The Secretary shall establish a select 
        subcommittee of the advisory committee to advise the Secretary 
        and the advisory committee on issues related to the air travel 
        needs of passengers with disabilities.
          ``(2) Duties.--The select subcommittee shall--
                  ``(A) identify the disability-related access barriers 
                encountered by passengers with disabilities;
                  ``(B) determine the extent to which the programs and 
                activities of the Department of Transportation are 
                addressing the barriers identified under subparagraph 
                (A);
                  ``(C) recommend consumer protection improvements 
                related to the air travel experience of passengers with 
                disabilities;
                  ``(D) advise the Secretary with regard to the 
                implementation of section 41705 of title 49, United 
                States Code; and
                  ``(E) conduct such other activities as the Secretary 
                considers necessary to carry out this subsection.
          ``(3) Membership.--
                  ``(A) Composition.--The select subcommittee shall be 
                composed of members appointed by the Secretary, 
                including at least 1 individual representing each of 
                the following:
                          ``(i) National disability organizations.
                          ``(ii) Air carriers and foreign air carriers 
                        with flights in air transportation.
                          ``(iii) Airport operators.
                          ``(iv) Contractor service providers.
                  ``(B) Inclusion.--A member of the select subcommittee 
                may also be a member of the advisory committee.
          ``(4) Reports.--
                  ``(A) In general.--Not later than 1 year after the 
                date of establishment of the select subcommittee, the 
                select subcommittee shall submit to the advisory 
                committee and the Secretary a report on the air travel 
                needs of passengers with disabilities that includes--
                          ``(i) an assessment of existing disability-
                        related access barriers and any emerging 
                        disability-related access barriers that will 
                        likely be an issue in the next 5 years;
                          ``(ii) an evaluation of the extent to which 
                        the programs and activities of the Department 
                        of Transportation are eliminating disability-
                        related access barriers;
                          ``(iii) a description of consumer protection 
                        improvements related to the air travel 
                        experience of passengers with disabilities; and
                          ``(iv) any recommendations for legislation, 
                        regulations, or other actions that the select 
                        subcommittee considers appropriate.
                  ``(B) Report to congress.--Not later than 60 days 
                after the date on which the Secretary receives the 
                report under subparagraph (A), the Secretary shall 
                submit to Congress a copy of the report, including any 
                additional findings or recommendations that the 
                Secretary considers appropriate.
          ``(5) Chairperson.--The Secretary shall designate, from among 
        the individuals appointed under paragraph (3), an individual to 
        serve as chairperson of the select subcommittee.
          ``(6) Vacancies and travel expenses.--Subsections (c) and (d) 
        shall apply to the select subcommittee.
          ``(7) Termination.--The select subcommittee established under 
        this subsection shall terminate upon submission of the report 
        required under paragraph (4)(A).''.

SEC. 542. AVIATION CONSUMERS WITH DISABILITIES STUDY.

  (a) Study.--Not later than 180 days after the date of enactment of 
this Act, the Comptroller General of the United States shall conduct a 
study that includes--
          (1) a review of airport accessibility best practices for 
        individuals with disabilities, including best practices that 
        improve infrastructure facilities and communications methods, 
        including those related to wayfinding, amenities, and passenger 
        care;
          (2) a review of air carrier and airport training policies 
        related to section 41705 of title 49, United States Code;
          (3) a review of air carrier training policies related to 
        properly assisting passengers with disabilities; and
          (4) a review of accessibility best practices that exceed 
        those recommended under Public Law 90-480 (popularly known as 
        the Architectural Barriers Act of 1968; 42 U.S.C. 4151 et 
        seq.), the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 
        the Air Carrier Access Act of 1986 (Public Law 99-435; 100 
        Stat. 1080 et seq.), and the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12101 et seq.).
  (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall submit to the Secretary of 
Transportation, 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 study, including 
findings and recommendations.

SEC. 543. FEASIBILITY STUDY ON IN-CABIN WHEELCHAIR RESTRAINT SYSTEMS.

  (a) Study.--Not later than 2 years after the date of enactment of 
this Act, the Secretary of Transportation, in consultation with the 
Architectural and Transportation Barriers Compliance Board, aircraft 
manufacturers, and air carriers, shall conduct a study to determine--
          (1) the feasibility of in-cabin wheelchair restraint systems; 
        and
          (2) if feasible, the ways in which individuals with 
        significant disabilities using wheelchairs, including power 
        wheelchairs, can be accommodated with in-cabin wheelchair 
        restraint systems.
  (b) Report.--Not later than 1 year after the initiation of the study 
under subsection (a), the Secretary of Transportation 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 findings of the study.

SEC. 544. ACCESS ADVISORY COMMITTEE RECOMMENDATIONS.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Transportation shall issue a notice of 
proposed rulemaking addressing--
          (1) accommodations for air travelers with disabilities with 
        respect to in-flight entertainment;
          (2) accessible lavatories on single-aisle aircraft; and
          (3) service animals.
  (b) Rulemaking.--Not later than 1 year after the date on which the 
notice of proposed rulemaking is issued, the Secretary shall publish a 
final rule based on such notice.

                Subtitle C--Small Community Air Service

SEC. 551. ESSENTIAL AIR SERVICE AUTHORIZATION.

  Section 41742(a)(2) of title 49, United States Code, is amended by 
striking ``$150,000,000 for fiscal year 2011'' and all that follows 
before ``to carry out'' and inserting ``$178,000,000 for fiscal year 
2018, $182,000,000 for fiscal year 2019, $185,000,000 for fiscal year 
2020, $327,000,000 for fiscal year 2021, $337,000,000 for fiscal year 
2022, and $347,000,000 for fiscal year 2023''.

SEC. 552. 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 ``September 30, 
2017'' and inserting ``September 30, 2023''.

SEC. 553. STUDY ON ESSENTIAL AIR SERVICE REFORM.

  (a) Study.--
          (1) In general.--The Comptroller General of the United States 
        shall conduct a study on the effects of section 6 of the 
        Airport and Airway Extension Act of 2011, Part IV (Public Law 
        112-27), section 421 of the FAA Modernization and Reform Act of 
        2012 (Public Law 112-95), and other relevant Federal laws 
        enacted after 2010, including the amendments made by those 
        laws, on the Essential Air Service program.
          (2) Scope.--In conducting the study under paragraph (1), the 
        Comptroller General shall analyze, at a minimum--
                  (A) the impact of each relevant Federal law, 
                including the amendments made by each law, on the 
                Essential Air Service program;
                  (B) what actions communities and air carriers have 
                taken to reduce ticket prices or increase enplanements 
                as a result of each law;
                  (C) the issuance of waivers by the Secretary under 
                section 41731(e) of title 49, United States Code;
                  (D) whether budgetary savings resulted from each law; 
                and
                  (E) options for further reform of the Essential Air 
                Service program.
  (b) 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 conducted under subsection (a).

SEC. 554. SMALL COMMUNITY AIR SERVICE.

  (a) Eligibility.--Section 41743(c) of title 49, United States Code, 
is amended--
          (1) by striking paragraph (1) and inserting the following:
          ``(1) Size.--On the date of submission of the relevant 
        application under subsection (b), the airport serving the 
        community or consortium--
                  ``(A) is not larger than a small hub airport, as 
                determined using the Department of Transportation's 
                most recently published classification; and
                  ``(B) has--
                          ``(i) insufficient air carrier service; or
                          ``(ii) unreasonably high air fares.'';
          (2) in paragraph (4)--
                  (A) by striking ``once,'' and inserting ``once in a 
                10-year period,''; and
                  (B) by inserting ``at any time'' after ``different 
                project''; and
          (3) in paragraph (5)--
                  (A) by redesignating subparagraphs (E) and (F) as 
                subparagraphs (F) and (G), respectively; and
                  (B) by inserting after subparagraph (D) the 
                following:
                  ``(E) the assistance will be used to help restore 
                scheduled passenger air service that has been 
                terminated;''.
  (b) Authorization of Appropriations.--Section 41743(e)(2) of title 
49, United States Code, is amended to read as follows:
          ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary $10,000,000 for each of 
        fiscal years 2018 through 2023 to carry out this section, of 
        which $4,800,000 per fiscal year shall be used to carry out the 
        pilot program established under subsection (i). Such sums shall 
        remain available until expended.''.
  (c) Regional Air Transportation Pilot Program.--Section 41743 of 
title 49, United States Code, is amended by adding at the end the 
following:
  ``(i) Regional Air Transportation Pilot Program.--
          ``(1) Establishment.--The Secretary shall establish a 
        regional air transportation pilot program to provide operating 
        assistance to air carriers in order to provide air service to 
        communities not receiving sufficient air carrier service.
          ``(2) Grants.--The Secretary shall provide grants under the 
        program to encourage and maintain air service at reasonable 
        airfares between communities that have experienced, as 
        determined by the Secretary, significant declines in air 
        service.
          ``(3) Application required.--In order to participate in the 
        program, a State, local government, economic development 
        authority, or other public entity shall submit to the Secretary 
        an application, in a manner that the Secretary prescribes, that 
        contains--
                  ``(A) an identification of an air carrier that has 
                provided a written agreement to provide the air service 
                in partnership with the applicant;
                  ``(B) assurances that the applicant will provide the 
                non-Federal share and that the non-Federal share is not 
                derived from airport revenue;
                  ``(C) a proposed route structure serving not more 
                than 8 communities; and
                  ``(D) a timeline for commencing the air service to 
                the communities within the proposed route structure.
          ``(4) Criteria for participation.--The Secretary may approve 
        up to 3 applications each fiscal year, subject to the 
        availability of funds, if the Secretary determines that--
                  ``(A) the proposal of the applicant can reasonably be 
                expected to encourage and improve levels of air service 
                between the relevant communities;
                  ``(B) the applicant has adequate financial resources 
                to ensure the commitment to the communities;
                  ``(C) the airports serving the communities are 
                nonhub, small hub, or medium hub airports, as 
                determined using the Department of Transportation's 
                most recently published classifications; and
                  ``(D) the air carrier commits to serving the 
                communities for at least 2 years.
          ``(5) Priorities.--The Secretary shall prioritize 
        applications that--
                  ``(A) would initiate new or reestablish air service 
                in communities where air fares are higher than the 
                average air fares for all communities;
                  ``(B) are more likely to result in self-sustaining 
                air service at the end of the program;
                  ``(C) request a Federal share lower than 50 percent; 
                and
                  ``(D) propose to use grant funds in a timely fashion.
          ``(6) Federal share.--The Federal share of the cost of 
        operating assistance provided under the program may not exceed 
        50 percent.
          ``(7) Sunset.--This subsection shall cease to be effective on 
        October 1, 2023.''.

SEC. 555. AIR TRANSPORTATION TO NONELIGIBLE PLACES.

  (a) Definitions.--Section 41731(a)(1)(A)(ii) of title 49, United 
States Code, is amended by striking ``Wendell H. Ford Aviation 
Investment and Reform Act for the 21st Century,'' and inserting ``FAA 
Extension, Safety, and Security Act of 2016 (Public Law 114-190),''.
  (b) Program Sunset.--Section 41736 of title 49, United States Code, 
is amended by adding at the end the following:
  ``(h) Sunset.--
          ``(1) Proposals.--No proposal under subsection (a) may be 
        accepted by the Secretary after the date of enactment of this 
        subsection.
          ``(2) Program.--The Secretary may not provide any 
        compensation under this section after the date that is 2 years 
        after the date of enactment of this subsection.''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. REVIEW OF FAA STRATEGIC CYBERSECURITY PLAN.

  (a) In General.--Not later than 120 days after the date on which the 
Interim Chief Executive Officer (CEO) of the American Air Navigation 
Services Corporation is hired, the Administrator of the Federal 
Aviation Administration, in consultation with the Interim CEO (or the 
CEO of the American Air Navigation Services Corporation, as 
appropriate), shall initiate a review of the comprehensive and 
strategic framework of principles and policies (referred to in this 
section as the ``framework'') developed pursuant to section 2111 of the 
FAA Extension, Safety, and Security Act of 2016 (49 U.S.C. 44903 note).
  (b) Contents.--In undertaking the review, the Administrator shall--
          (1) determine how the framework should be updated to reflect 
        the transfer from the Federal Aviation Administration to the 
        American Air Navigation Services Corporation of operational 
        control of air traffic services within United States airspace 
        and international airspace delegated to the United States; and
          (2) modify the framework to support the Federal Aviation 
        Administration in establishing cybersecurity standards to 
        assist the American Air Navigation Services Corporation in 
        responsibilities associated with managing air traffic services 
        in a secure manner after the date of transfer (as defined in 
        section 90101(a) of title 49, United States Code, as added by 
        this Act).
  (c) Report to Congress.--Not later than 120 days after initiating the 
review required by subsection (a), 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 review, 
including a description of any modifications made to the framework.

SEC. 602. CONSOLIDATION AND REALIGNMENT OF FAA SERVICES AND FACILITIES.

  (a) In General.--Section 804(a) of the FAA Modernization and Reform 
Act of 2012 (49 U.S.C. 44501 note) is amended--
          (1) in paragraph (2) by striking ``The purpose of the report 
        shall be--'' and all that follows through ``(B) to reduce'' and 
        inserting ``The purpose of the report shall be to reduce''; and
          (2) by striking paragraph (4) and inserting the following:
          ``(4) Input.--The report shall be prepared by the 
        Administrator (or the Administrator's designee) with the 
        participation of--
                  ``(A) representatives of labor organizations 
                representing air traffic control system employees of 
                the FAA; and
                  ``(B) industry stakeholders.''.
  (b) FAA Air Traffic Control Facility Consolidation and Realignment 
Projects.--Notwithstanding section 90317(c) of title 49, United States 
Code, as added by this Act, the Secretary of Transportation shall 
continue to carry out any consolidation or realignment project 
commenced under section 804 of the FAA Modernization and Reform Act of 
2012.

SEC. 603. FAA REVIEW AND REFORM.

  (a) Agency Report.--Not later than 60 days after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration 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 detailed analysis 
of any actions taken to address the findings and recommendations 
included in the report required under section 812(d) of the FAA 
Modernization and Reform Act of 2012 (49 U.S.C. 106 note), 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.
  (b) Additional Review.--Not later than 1 year after the date of 
transfer, as defined in section 90101(a) of title 49, United States 
Code, as added by this Act, the Administrator shall undertake and 
complete a thorough review of each program, office, and organization 
within the Administration 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.
  (c) Actions To Streamline and Reform FAA.--Not later than 60 days 
after the date of completion of the review under subsection (b), the 
Administrator shall undertake such actions as may be necessary to 
address the findings of the Administrator under such subsection.
  (d) Report to Congress.--Not later than 120 days after the date of 
completion of the review under subsection (b), 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 actions taken by the 
Administrator pursuant to subsection (c), including any recommendations 
for legislative or administrative actions.

SEC. 604. AVIATION FUEL.

  (a) Use of Unleaded Aviation Gasoline.--The Administrator of the 
Federal Aviation Administration shall allow the use of an unleaded 
aviation gasoline in an aircraft as a replacement for a leaded gasoline 
if the Administrator--
          (1) determines that an unleaded aviation gasoline qualifies 
        as a replacement for an approved leaded gasoline;
          (2) identifies the aircraft and engines that are eligible to 
        use the qualified replacement unleaded gasoline; and
          (3) adopts a process (other than the traditional means of 
        certification) to allow eligible aircraft and engines to 
        operate using qualified replacement unleaded gasoline in a 
        manner that ensures safety.
  (b) Timing.--The Administrator shall adopt the process described in 
subsection (a)(3) not later than 180 days after the later of--
          (1) the date of completion of the Piston Aviation Fuels 
        Initiative of the Administration; or
          (2) the date of publication of an American Society for 
        Testing and Materials Production Specification for an unleaded 
        aviation gasoline.
  (c) Sense of Congress.--It is the sense of Congress that the Piston 
Aviation Fuels Initiative of the Administration and the American 
Society for Testing and Materials should work to find an appropriate 
unleaded aviation gasoline by January 1, 2023.

SEC. 605. RIGHT TO PRIVACY WHEN USING AIR TRAFFIC CONTROL SYSTEM.

  Notwithstanding any other provision of law, the Administrator of the 
Federal Aviation Administration shall, upon request of a private 
aircraft owner or operator, block the registration number of the 
aircraft of the owner or operator from any public dissemination or 
display, except in data made available to a Government agency, for the 
noncommercial flights of the owner or operator.

SEC. 606. AIR SHOWS.

  On an annual basis, the Administrator of the Federal Aviation 
Administration shall work with representatives of Administration-
approved air shows, the general aviation community, and stadiums and 
other large outdoor events and venues to identify and resolve, to the 
maximum extent practicable, scheduling conflicts between 
Administration-approved air shows and large outdoor events and venues 
where--
          (1) flight restrictions will be imposed pursuant to section 
        521 of title V of division F of Public Law 108-199 (118 Stat. 
        343); or
          (2) any other restriction will be imposed pursuant to Federal 
        Aviation Administration Flight Data Center Notice to Airmen 4/
        3621 (or any successor notice to airmen).

SEC. 607. PART 91 REVIEW, REFORM, AND STREAMLINING.

  (a) Establishment of Task Force.--Not later than 90 days after the 
date of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall establish a task force comprised of 
representatives of the general aviation industry who regularly perform 
part 91 operations, labor unions (including those representing FAA 
aviation safety inspectors and FAA aviation safety engineers), 
manufacturers, and the Government to--
          (1) conduct an assessment of the FAA oversight and 
        authorization processes and requirements for aircraft under 
        part 91; and
          (2) make recommendations to streamline the applicable 
        authorization and approval processes, improve safety, and 
        reduce regulatory cost burdens and delays for the FAA and 
        aircraft owners and operators who operate pursuant to part 91.
  (b) Contents.--In conducting the assessment and making 
recommendations under subsection (a), the task force shall consider--
          (1) process reforms and improvements to allow the FAA to 
        review and approve applications in a fair and timely fashion;
          (2) the appropriateness of requiring an authorization for 
        each experimental aircraft rather than using a broader all 
        makes and models approach;
          (3) ways to improve the timely response to letters of 
        authorization applications for aircraft owners and operators 
        who operate pursuant to part 91, including setting deadlines 
        and granting temporary or automatic authorizations if deadlines 
        are missed by the FAA;
          (4) methods for enhancing the effective use of delegation 
        systems;
          (5) methods for training the FAA's field office employees in 
        risk-based and safety management system oversight; and
          (6) such other matters related to streamlining part 91 
        authorization and approval processes as the task force 
        considers appropriate.
  (c) Report to Congress.--
          (1) In general.--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 
        task force's assessment.
          (2) Contents.--The report shall include an explanation of how 
        the Administrator will--
                  (A) implement the recommendations of the task force;
                  (B) measure progress in implementing the 
                recommendations; and
                  (C) measure the effectiveness of the implemented 
                recommendations.
  (d) Implementation of Recommendations.--Not later than 18 months 
after the date of enactment of this Act, the Administrator shall 
implement the recommendations made under this section.
  (e) Definitions.--In this section, the following definitions apply:
          (1) FAA.--The term ``FAA'' means the Federal Aviation 
        Administration.
          (2) Part 91.--The term ``part 91'' means part 91 of title 14, 
        Code of Federal Regulations.
  (f) Applicable Law.--Public Law 92-463 shall not apply to the task 
force.
  (g) Sunset.--The task force shall terminate on the day the 
Administrator submits the report required under subsection (c).

SEC. 608. AIRCRAFT REGISTRATION.

  Not later than 180 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall initiate a 
rulemaking to increase the duration of aircraft registrations for 
noncommercial general aviation aircraft to 10 years.

SEC. 609. AIR TRANSPORTATION OF LITHIUM CELLS AND BATTERIES.

  (a) Cooperative Efforts To Ensure Compliance With Safety 
Regulations.--
          (1) In general.--The Secretary of Transportation, in 
        coordination with appropriate Federal agencies, shall carry out 
        cooperative efforts to ensure that shippers who offer lithium 
        ion and lithium metal batteries for air transport to or from 
        the United States comply with U.S. Hazardous Materials 
        Regulations and ICAO Technical Instructions.
          (2) Cooperative efforts.--The cooperative efforts the 
        Secretary shall carry out pursuant to paragraph (1) include the 
        following:
                  (A) Encouraging training programs at locations 
                outside the United States from which substantial cargo 
                shipments of lithium ion or lithium metal batteries 
                originate for manufacturers, freight forwarders, and 
                other shippers and potential shippers of lithium ion 
                and lithium metal batteries.
                  (B) Working with Federal, regional, and international 
                transportation agencies to ensure enforcement of U.S. 
                Hazardous Materials Regulations and ICAO Technical 
                Instructions with respect to shippers who offer 
                noncompliant shipments of lithium ion and lithium metal 
                batteries.
                  (C) Sharing information, as appropriate, with 
                Federal, regional, and international transportation 
                agencies regarding noncompliant shipments.
                  (D) Pursuing a joint effort with the international 
                aviation community to develop a process to obtain 
                assurances that appropriate enforcement actions are 
                taken to reduce the likelihood of noncompliant 
                shipments, especially with respect to jurisdictions in 
                which enforcement activities historically have been 
                limited.
                  (E) Providing information in brochures and on the 
                internet in appropriate foreign languages and dialects 
                that describes the actions required to comply with U.S. 
                Hazardous Materials Regulations and ICAO Technical 
                Instructions.
                  (F) Developing joint efforts with the international 
                aviation community to promote a better understanding of 
                the requirements of and methods of compliance with U.S. 
                Hazardous Materials Regulations and ICAO Technical 
                Instructions.
          (3) Reporting.--Not later than 120 days after the date of 
        enactment of this Act, and annually thereafter for 2 years, 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 compliance with the policy set forth in 
        subsection (e) and the cooperative efforts carried out, or 
        planned to be carried out, under this subsection.
  (b) Lithium Battery Air Safety Advisory Committee.--
          (1) Establishment.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary shall establish, in 
        accordance with the requirements of the Federal Advisory 
        Committee Act (5 U.S.C. App.), a lithium ion and lithium metal 
        battery air safety advisory committee (in this subsection 
        referred to as the ``Committee'').
          (2) Duties.--The Committee shall--
                  (A) facilitate communication between manufacturers of 
                lithium ion and lithium metal cells and batteries, 
                manufacturers of products incorporating both large and 
                small lithium ion and lithium metal batteries, air 
                carriers, and the Federal Government regarding the safe 
                air transportation of lithium ion and lithium metal 
                cells and batteries and the effectiveness and economic 
                and social impacts of the regulation of such 
                transportation;
                  (B) provide the Secretary, the Federal Aviation 
                Administration, and the Pipeline and Hazardous 
                Materials Safety Administration with timely information 
                about new lithium ion and lithium metal battery 
                technology and transportation safety practices and 
                methodologies;
                  (C) provide a forum for the Secretary to provide 
                information on and to discuss the activities of the 
                Department of Transportation relating to lithium ion 
                and lithium metal battery transportation safety, the 
                policies underlying the activities, and positions to be 
                advocated in international forums;
                  (D) provide a forum for the Secretary to provide 
                information and receive advice on--
                          (i) activities carried out throughout the 
                        world to communicate and enforce relevant 
                        United States regulations and the ICAO 
                        Technical Instructions; and
                          (ii) the effectiveness of the activities;
                  (E) provide advice and recommendations to the 
                Secretary with respect to lithium ion and lithium metal 
                battery air transportation safety, including how best 
                to implement activities to increase awareness of 
                relevant requirements and their importance to travelers 
                and shippers; and
                  (F) review methods to decrease the risk posed by air 
                shipment of undeclared hazardous materials and efforts 
                to educate those who prepare and offer hazardous 
                materials for shipment via air transport.
          (3) Membership.--The Committee shall be composed of the 
        following members:
                  (A) Individuals appointed by the Secretary to 
                represent--
                          (i) large volume manufacturers of lithium ion 
                        and lithium metal cells and batteries;
                          (ii) domestic manufacturers of lithium ion 
                        and lithium metal batteries or battery packs;
                          (iii) manufacturers of consumer products 
                        powered by lithium ion and lithium metal 
                        batteries;
                          (iv) manufacturers of vehicles powered by 
                        lithium ion and lithium metal batteries;
                          (v) marketers of products powered by lithium 
                        ion and lithium metal batteries;
                          (vi) cargo air service providers based in the 
                        United States;
                          (vii) passenger air service providers based 
                        in the United States;
                          (viii) pilots and employees of air service 
                        providers described in clauses (vi) and (vii);
                          (ix) shippers of lithium ion and lithium 
                        metal batteries for air transportation;
                          (x) manufacturers of battery-powered medical 
                        devices or batteries used in medical devices; 
                        and
                          (xi) employees of the Department of 
                        Transportation, including employees of the 
                        Federal Aviation Administration and the 
                        Pipeline and Hazardous Materials Safety 
                        Administration.
                  (B) Representatives of such other Government 
                departments and agencies as the Secretary determines 
                appropriate.
                  (C) Any other individuals the Secretary determines 
                are appropriate to comply with Federal law.
          (4) Report.--
                  (A) In general.--Not later than 180 days after the 
                establishment of the Committee, the Committee shall 
                submit to the Secretary, the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives, and the Committee on Commerce, 
                Science, and Transportation of the Senate a report 
                that--
                          (i) describes and evaluates the steps being 
                        taken in the private sector and by 
                        international regulatory authorities to 
                        implement and enforce requirements relating to 
                        the safe transportation by air of bulk 
                        shipments of lithium ion cells and batteries; 
                        and
                          (ii) identifies any areas of enforcement or 
                        regulatory requirements for which there is 
                        consensus that greater attention is needed.
                  (B) Independent statements.--Each member of the 
                Committee shall be provided an opportunity to submit an 
                independent statement of views with the report 
                submitted pursuant to subparagraph (A).
          (5) Meetings.--
                  (A) In general.--The Committee shall meet at the 
                direction of the Secretary and at least twice a year.
                  (B) Preparation for icao meetings.--Notwithstanding 
                subparagraph (A), the Secretary shall convene a meeting 
                of the Committee in connection with and in advance of 
                each meeting of the International Civil Aviation 
                Organization, or any of its panels or working groups, 
                addressing the safety of air transportation of lithium 
                ion and lithium metal batteries to brief Committee 
                members on positions to be taken by the United States 
                at such meeting and provide Committee members a 
                meaningful opportunity to comment.
          (6) Termination.--The Committee shall terminate on the date 
        that is 6 years after the date on which the Committee is 
        established.
          (7) Termination of future of aviation advisory committee.--
        The Future of Aviation Advisory Committee shall terminate on 
        the date on which the lithium ion battery air safety advisory 
        committee is established.
  (c) Medical Device Batteries.--
          (1) Limited exceptions to restrictions on air transportation 
        of medical device batteries.--The Secretary shall issue limited 
        exceptions to the restrictions on transportation of lithium ion 
        and lithium metal batteries to allow the shipment on a 
        passenger aircraft of not more than 2 replacement batteries 
        specifically used for a medical device if--
                  (A) the intended destination of the batteries is not 
                serviced daily by cargo aircraft if a battery is 
                required for medically necessary care; or
                  (B) with regard to a shipper of lithium ion or 
                lithium metal batteries for medical devices that cannot 
                comply with a charge limitation in place at the time, 
                each battery is--
                          (i) individually packed in an inner packaging 
                        that completely encloses the battery;
                          (ii) placed in a rigid outer packaging; and
                          (iii) protected to prevent a short circuit.
          (2) Medical device defined.--ln this subsection, the term 
        ``medical device'' means an instrument, apparatus, implement, 
        machine, contrivance, implant, or in vitro reagent, including 
        any component, part, or accessory thereof, which is intended 
        for use in the diagnosis of disease or other conditions, or in 
        the cure, mitigation, treatment, or prevention of disease, in a 
        person.
          (3) Savings clause.--Nothing in this subsection may be 
        construed as expanding or restricting any authority of the 
        Secretary under section 828 of the FAA Modernization and Reform 
        Act of 2012 (49 U.S.C. 44701 note).
  (d) Packaging Improvements.--Not later than 180 days after the date 
of enactment of this Act, the Secretary, in consultation with 
interested stakeholders, 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 
evaluation of current practices for the packaging of lithium ion 
batteries and cells for air transportation, including recommendations, 
if any, to improve the packaging of such batteries and cells for air 
transportation in a safe, efficient, and cost-effective manner.
  (e) Department of Transportation Policy on International 
Representation.--It shall be the policy of the Department of 
Transportation to support the participation of industry in all panels 
and working groups of the Dangerous Goods Panel of the International 
Civil Aviation Organization and any other international test or 
standard setting organization that considers proposals on the safety or 
transportation of lithium ion and lithium metal batteries in which the 
United States participates.
  (f) Harmonization With ICAO Technical Instructions.--Pursuant to 
section 828 of the FAA Modernization and Reform Act of 2012 (49 U.S.C. 
44701 note), not later than 30 days after the date of enactment of this 
Act, the Secretary shall conform United States regulations on the air 
transport of lithium cells and batteries with the lithium cells and 
batteries requirements in the 2015-2016 edition of the ICAO Technical 
Instructions (including all addenda), including the revised standards 
adopted by the International Civil Aviation Organization that became 
effective on April 1, 2016.
  (g) Definitions.--In this section, the following definitions apply:
          (1) ICAO technical instructions.--The term ``ICAO Technical 
        Instructions'' has the meaning given that term in section 
        828(c) of the FAA Modernization and Reform Act of 2012 (49 
        U.S.C. 44701 note).
          (2) U.S. hazardous materials regulations.--The term ``U.S. 
        Hazardous Materials Regulations'' means the regulations in 
        parts 100 through 177 of title 49, Code of Federal Regulations 
        (including amendments adopted after the date of enactment of 
        this Act).

SEC. 610. REMOTE TOWER PILOT PROGRAM FOR RURAL AND SMALL COMMUNITIES.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Transportation shall establish a pilot 
program under which, upon approval of an application submitted by an 
operator of a public-use airport, the Secretary shall install and 
operate at the airport a remote air traffic control tower in order to 
assess the operational benefits of remote air traffic control towers.
  (b) Applications.--The operator of an airport seeking to participate 
in the pilot program shall submit to the Secretary for approval an 
application that is in such form and contains such information as the 
Secretary may require.
  (c) Selection Criteria.--
          (1) Selection of airports.--From among the applications 
        submitted under subsection (b), the Secretary, after 
        consultation with representatives of labor organizations 
        representing operators and employees of the air traffic control 
        system, shall select for participation in the pilot program 7 
        airports as follows:
                  (A) 1 nonhub, primary airport.
                  (B) 3 nonprimary airports without existing air 
                traffic control towers.
                  (C) 2 airports with air traffic control towers 
                participating in a program established under section 
                47124 of title 49, United States Code.
                  (D) 1 airport selected at the discretion of the 
                Secretary.
          (2) Priority selection.--In selecting from among the 
        applications submitted under subsection (b), the Secretary 
        shall give priority to applicants that can best demonstrate the 
        capabilities and potential of remote air traffic control 
        towers, including applicants proposing to operate multiple 
        remote air traffic control towers from a single facility.
          (3) Authority to reallocate airport selection.--If the 
        Secretary receives an insufficient number of applications, the 
        Secretary may reallocate the distribution of airport sites 
        described in paragraph (1).
  (d) Asset Classification.--For purposes of section 90317 of title 49, 
United States Code, as added by this Act, a remote air traffic control 
tower, including ancillary equipment, installed with Government funds 
pursuant to this section shall be considered to be an air navigation 
facility.
  (e) Safety Risk Management Panel.--
          (1) Safety risk management panel meeting.--Prior to the 
        operational use of a remote air traffic control tower, the 
        Secretary shall convene a safety risk management panel for the 
        tower to address any safety issues with respect to the tower.
          (2) Safety risk management panel best practices.--The safety 
        risk management panels shall be created and utilized in a 
        manner similar to that of safety risk management panels 
        previously established for remote air traffic control towers, 
        taking into account--
                  (A) best practices that have been developed; and
                  (B) operational data from remote air traffic control 
                towers located in the United States.
  (f) Airport Improvement Program.--The pilot program shall be eligible 
for airport improvement funding under chapter 471 of title 49, United 
States Code.
  (g) Possible Expansion of Program.--Not later than 30 days after the 
date that the first remote air traffic control tower is commissioned, 
the Administrator of the Federal Aviation Administration shall 
establish a repeatable process by which future certified remote air 
traffic control tower systems may be commissioned at additional 
airports.
  (h) Definitions.--
          (1) In general.--In this section, the following definitions 
        apply:
                  (A) Air navigation facility.--The term ``air 
                navigation facility'' has the meaning given that term 
                in section 40102(a) of title 49, United States Code.
                  (B) Remote air traffic control tower.--The term 
                ``remote air traffic control tower'' means a remotely 
                operated air navigation facility, including all 
                necessary system components, that provides the 
                functions and capabilities of an air traffic control 
                tower.
          (2) Applicability of other definitions.--The terms ``nonhub 
        airport'', ``primary airport'', and ``public-use airport'' have 
        the meanings given such terms in section 47102 of title 49, 
        United States Code.
  (i) Sunset.--The pilot program shall terminate on the day before the 
date of transfer, as defined in section 90101(a) of title 49, United 
States Code, as added by this Act.

SEC. 611. ENSURING FAA READINESS TO PROVIDE SEAMLESS OCEANIC 
                    OPERATIONS.

  Not later than September 30, 2018, the Secretary of Transportation 
shall make a final investment decision for the implementation of a 
reduced oceanic separation capability that, by March 31, 2019, shall be 
operational and in use providing capabilities at least equivalent to 
that offered in neighboring airspace, and such service shall be 
provided in the same manner as terrestrial surveillance is provided.

SEC. 612. SENSE OF CONGRESS REGARDING WOMEN IN AVIATION.

  It is the sense of Congress that the aviation industry should explore 
all opportunities, including pilot training, science, technology, 
engineering, and mathematics education, and mentorship programs, to 
encourage and support female students and aviators to pursue a career 
in aviation.

SEC. 613. OBSTRUCTION EVALUATION AERONAUTICAL STUDIES.

  The Secretary of Transportation may implement the policy set forth in 
the notice of proposed policy titled ``Proposal to Consider the Impact 
of One Engine Inoperative Procedures in Obstruction Evaluation 
Aeronautical Studies'' published by the Department of Transportation on 
April 28, 2014 (79 Fed. Reg. 23300), only if the policy is adopted 
pursuant to a notice and comment rulemaking and, for purposes of 
Executive Order 12866 (5 U.S.C. 601 note; relating to regulatory 
planning and review), is treated as a significant regulatory action 
within the scope of section 3(f)(1) of such Order.

SEC. 614. AIRCRAFT LEASING.

  Section 44112(b) of title 49, United States Code, is amended--
          (1) by striking ``on land or water''; and
          (2) by inserting ``operational'' before ``control''.

SEC. 615. REPORT ON OBSOLETE TEST EQUIPMENT.

  (a) Report.--Not later than 180 days after the date of enactment of 
this Act, the Administrator of the Federal Aviation Administration 
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 National Test 
Equipment Program of the Federal Aviation Administration (in this 
section referred to as the ``Program'').
  (b) Contents.--The report shall include--
          (1) a list of all known outstanding requests for test 
        equipment, cataloged by type and location, under the Program;
          (2) a description of the current method under the Program of 
        ensuring calibrated equipment is in place for utilization;
          (3) a plan by the Administrator for appropriate inventory of 
        such equipment;
          (4) the Administrator's recommendations for increasing 
        multifunctionality in future test equipment and all known and 
        foreseeable manufacturer technological advances; and
          (5) a plan to replace, as appropriate, obsolete test 
        equipment throughout the service areas.

SEC. 616. RETIRED MILITARY CONTROLLERS.

  Section 44506(f) of title 49, United States Code, is amended--
          (1) in paragraph (3) by inserting ``except for individuals 
        covered by a program described in paragraph (4),'' after 
        ``section 3307 of title 5,''; and
          (2) by adding at the end the following:
          ``(4) Retired military controllers.--The Administrator may 
        establish a program to provide an original appointment to a 
        position as an air traffic controller for individuals who--
                  ``(A) are on terminal leave pending retirement from 
                active duty military service or have retired from 
                active duty military service within 5 years of applying 
                for the appointment; and
                  ``(B) within 5 years of applying for the appointment, 
                have held either an air traffic control specialist 
                certification or a facility rating according to 
                Administration standards.''.

SEC. 617. PILOTS SHARING FLIGHT EXPENSES WITH PASSENGERS.

  (a) Guidance.--
          (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator of the Federal 
        Aviation Administration shall make publicly available, in a 
        clear and concise format, advisory guidance that describes how 
        a pilot may share flight expenses with passengers in a manner 
        consistent with Federal law, including regulations.
          (2) Examples included.--The guidance shall include examples 
        of--
                  (A) flights for which pilots and passengers may share 
                expenses;
                  (B) flights for which pilots and passengers may not 
                share expenses;
                  (C) the methods of communication that pilots and 
                passengers may use to arrange flights for which 
                expenses are shared; and
                  (D) the methods of communication that pilots and 
                passengers may not use to arrange flights for which 
                expenses are shared.
  (b) Report.--
          (1) In general.--Not later than 180 days after the date on 
        which guidance is made publicly available under subsection (a), 
        the Comptroller General of the United States 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 analyzing Federal policy 
        with respect to pilots sharing flight expenses with passengers.
          (2) Evaluations included.--The report submitted under 
        paragraph (1) shall include an evaluation of--
                  (A) the rationale for such Federal policy;
                  (B) safety and other concerns related to pilots 
                sharing flight expenses with passengers; and
                  (C) benefits related to pilots sharing flight 
                expenses with passengers.

SEC. 618. AVIATION RULEMAKING COMMITTEE FOR PART 135 PILOT REST AND 
                    DUTY RULES.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall convene an aviation rulemaking committee to review, and develop 
findings and recommendations regarding, pilot rest and duty rules under 
part 135 of title 14, Code of Federal Regulations.
  (b) Duties.--The Administrator shall--
          (1) not later than 2 years after the date of enactment of 
        this Act, 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 based on the findings of the aviation 
        rulemaking committee; and
          (2) not later than 1 year after the date of submission of the 
        report under paragraph (1), issue a notice of proposed 
        rulemaking based on any consensus recommendations reached by 
        the aviation rulemaking committee.
  (c) Composition.--The aviation rulemaking committee shall consist of 
members appointed by the Administrator, including--
          (1) representatives of industry;
          (2) representatives of aviation labor organizations, 
        including collective bargaining units representing pilots who 
        are covered by part 135 of title 14, Code of Federal 
        Regulations, and subpart K of part 91 of such title; and
          (3) aviation safety experts with specific knowledge of flight 
        crewmember education and training requirements under part 135 
        of such title.
  (d) Considerations.--The Administrator shall direct the aviation 
rulemaking committee to consider--
          (1) recommendations of prior part 135 rulemaking committees;
          (2) accommodations necessary for small businesses;
          (3) scientific data derived from aviation-related fatigue and 
        sleep research;
          (4) data gathered from aviation safety reporting programs;
          (5) the need to accommodate the diversity of operations 
        conducted under part 135; and
          (6) other items, as appropriate.

SEC. 619. METROPOLITAN WASHINGTON AIRPORTS AUTHORITY.

  (a) Findings.--Congress finds that--
          (1) the Metropolitan Washington Airports Authority (in this 
        section referred to as ``MWAA''), which operates Ronald Reagan 
        Washington National Airport and Dulles International Airport by 
        lease with the Department of Transportation, has routinely 
        performed poorly on audits conducted by the Inspector General 
        of the Department of Transportation;
          (2) the responsible stewardship of taxpayer-owned assets by 
        MWAA is of great concern to Congress;
          (3) a March 20, 2015, audit conducted by the Inspector 
        General titled ``MWAA's Office of Audit Does Not Have an 
        Adequate Quality Assurance and Improvement Program'' (Report 
        No. ZA-2015-035) found that MWAA's quality assurance and 
        improvement program did not conform with the standards of the 
        Institute of Internal Auditors; and
          (4) the Inspector General's audit made 7 recommendations to 
        strengthen MWAA governance, its Office of Audit, and its 
        quality assurance and improvement program.
  (b) Implementing Audit Recommendations.--
          (1) Study.--The Inspector General of the Department of 
        Transportation shall conduct a study on MWAA's progress in 
        implementing the recommendations of the audit referred to in 
        subsection (a).
          (2) Report.--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 study, including 
        the Inspector General's findings, conclusions, and 
        recommendations for strengthening and improving MWAA's Office 
        of Audit.

SEC. 620. TERMINAL AERODROME FORECAST.

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall permit a covered air carrier to operate to or from 
a location in a noncontiguous State without a Terminal Aerodrome 
Forecast or Meteorological Aerodrome Report if--
          (1) such location is determined to be under visual 
        meteorological conditions;
          (2) a current Area Forecast, supplemented by other local 
        weather observations or reports, is available; and
          (3) an alternate airport that has an available Terminal 
        Aerodrome Forecast and weather report is specified.
  (b) Procedures.--A covered air carrier shall--
          (1) have approved procedures for dispatch or release and 
        enroute weather evaluation; and
          (2) operate under instrument flight rules enroute to the 
        destination.
  (c) Covered Air Carrier Defined.--In this section, the term ``covered 
air carrier'' means an air carrier operating in a noncontiguous State 
under part 121 of title 14, Code of Federal Regulations.

SEC. 621. FEDERAL AVIATION ADMINISTRATION EMPLOYEES STATIONED ON GUAM.

  It is the sense of Congress that--
          (1) the Administrator of the Federal Aviation Administration 
        and the Secretary of Defense should seek an agreement that 
        would enable Federal Aviation Administration employees 
        stationed on Guam to have access to Department of Defense 
        hospitals, commissaries, and exchanges on Guam;
          (2) access to these facilities is important to ensure the 
        health and well-being of Federal Aviation Administration 
        employees and their families; and
          (3) in exchange for this access, the Federal Aviation 
        Administration should make payments to cover the applicable 
        administrative costs incurred by the Department of Defense in 
        carrying out the agreement.

SEC. 622. TECHNICAL CORRECTIONS.

  (a) Airport Capacity Enhancement Projects at Congested Airports.--
Section 40104(c) of title 49, United States Code, is amended by 
striking ``section 47176'' and inserting ``section 47175''.
  (b) Passenger Facility Charges.--Section 40117(a)(5) of title 49, 
United States Code, is amended by striking ``charge or charge'' and 
inserting ``charge''.
  (c) Overflights of National Parks.--Section 40128(a)(3) of title 49, 
United States Code, is amended by striking ``under part 91 of the title 
14,'' and inserting ``under part 91 of title 14,''.
  (d) Plans To Address Needs of Families of Passengers Involved in 
Foreign Air Carrier Accidents.--Section 41313(c)(16) of title 49, 
United States Code, is amended by striking ``An assurance that the 
foreign air carrier'' and inserting ``An assurance that''.
  (e) Operations of Carriers.--The analysis for chapter 417 of title 
49, United States Code, is amended by striking the item relating to 
section 41718 and inserting the following:

``41718. Special rules for Ronald Reagan Washington National 
Airport.''.

  (f) Schedules for Certain Transportation of Mail.--Section 41902(a) 
of title 49, United States Code, is amended by striking ``section 
41906'' and inserting ``section 41905''.
  (g) Weighing Mail.--Section 41907 of title 49, United States Code, is 
amended by striking ``and -administrative'' and inserting ``and 
administrative''.
  (h) Structures Interfering With Air Commerce or National Security.--
Section 44718(b)(1) of title 49, United States Code, is amended--
          (1) in the matter preceding subparagraph (A) by striking 
        ``air navigation facilities and equipment'' and inserting ``air 
        or space navigation facilities and equipment''; and
          (2) in subparagraph (A)--
                  (A) in clause (v) by striking ``and'' at the end;
                  (B) by redesignating clause (vi) as clause (vii); and
                  (C) by inserting after clause (v) the following:
                          ``(vi) the impact on launch and reentry for 
                        launch and reentry vehicles arriving or 
                        departing from a launch site or reentry site 
                        licensed by the Secretary of Transportation; 
                        and''.
  (i) Fees Involving Aircraft Not Providing Air Transportation.--
Section 45302 of title 49, United States Code, is amended by striking 
``44703(f)(2)'' each place it appears and inserting ``44703(g)(2)''.
  (j) Chapter 465.--The analysis for chapter 465 of title 49, United 
States Code, is amended by striking the following:

``46503. Repealed.''.

  (k) Solicitation and Consideration of Comments.--Section 47171(l) of 
title 49, United States Code, is amended by striking ``4371'' and 
inserting ``4321''.
  (l) Adjustments to Compensation for Significantly Increased Costs.--
Section 426 of the FAA Modernization and Reform Act of 2012 is 
amended--
          (1) in subsection (a) (49 U.S.C. 41737 note) by striking 
        ``Secretary'' and inserting ``Secretary of Transportation''; 
        and
          (2) in subsection (c) (49 U.S.C. 41731 note) by striking 
        ``the Secretary may waive'' and inserting ``the Secretary of 
        Transportation may waive''.
  (m) Aircraft Departure Queue Management Pilot Program.--Section 
507(a) of the FAA Modernization and Reform Act of 2012 (49 U.S.C. 44505 
note) is amended by striking ``section 48101(a)'' and inserting 
``section 48101(a) of title 49, United States Code,''.

SEC. 623. APPLICATION OF VETERANS' PREFERENCE TO FEDERAL AVIATION 
                    ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

  Section 40122(g)(2)(B) of title 49, United States Code, is amended--
          (1) by inserting ``3304(f),'' before ``3308-3320''; and
          (2) by inserting ``3330a, 3330b, 3330c, and 3330d,'' before 
        ``relating''.

SEC. 624. PUBLIC AIRCRAFT ELIGIBLE FOR LOGGING FLIGHT TIMES.

  The Administrator of the Federal Aviation Administration shall issue 
regulations modifying section 61.51(j)(4) of title 14, Code of Federal 
Regulations, so as to include aircraft under the direct operational 
control of forestry and fire protection agencies as public aircraft 
eligible for logging flight times.

SEC. 625. FEDERAL AVIATION ADMINISTRATION WORKFORCE REVIEW.

  (a) In General.--Not later than 120 days after the date of enactment 
of this Act, the Comptroller General of the United States shall conduct 
a review to assess the workforce and training needs of the Federal 
Aviation Administration (in this section referred to as the ``FAA'') in 
the anticipated budgetary environment.
  (b) Contents.--In conducting the review, the Comptroller General 
shall--
          (1) identify the long-term workforce and training needs of 
        the FAA workforce;
          (2) assess the impact of automation, digitalization, and 
        artificial intelligence on the FAA workforce;
          (3) analyze the skills and qualifications required of the FAA 
        workforce for successful performance in the current and future 
        projected aviation environment;
          (4) review current performance incentive policies of the FAA, 
        including awards for performance;
          (5) analyze ways in which the FAA can work with industry and 
        labor, including labor groups representing the FAA workforce, 
        to establish knowledge-sharing opportunities between the FAA 
        and the aviation industry regarding new equipment and systems, 
        best practices, and other areas of interest; and
          (6) develop recommendations on the most effective 
        qualifications, training programs (including e-learning 
        training), and performance incentive approaches to address the 
        needs of the future projected aviation regulatory system in the 
        anticipated budgetary environment.
  (c) Report.--Not later than 270 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 review.

SEC. 626. STATE TAXATION.

  Section 40116(d)(2)(A) of title 49, United States Code, is amended by 
adding at the end the following:
          ``(v) except as otherwise provided under section 47133, levy 
        or collect a tax, fee, or charge, first taking effect after the 
        date of enactment of this clause, upon any business located at 
        a commercial service airport or operating as a permittee of 
        such an airport that is not generally imposed on sales or 
        services by that State, political subdivision, or authority 
        unless wholly utilized for airport or aeronautical purposes.''.

SEC. 627. AVIATION AND AEROSPACE WORKFORCE OF THE FUTURE.

  (a) Findings.--Congress finds that--
          (1) in 2016, United States air carriers carried a record high 
        number of passengers on domestic flights, 719 million 
        passengers;
          (2) the United States aerospace and defense industry employed 
        1.7 million workers in 2015, or roughly 2 percent of the 
        Nation's total employment base;
          (3) the average salary of an employee in the aerospace and 
        defense industry is 44 percent above the national average;
          (4) in 2015, the aerospace and defense industry contributed 
        nearly $202.4 billion in value added to the United States 
        economy;
          (5) an effective aviation industry relies on individuals with 
        unique skill sets, many of which can be directly obtained 
        through career and technical education opportunities; and
          (6) industry and the Federal Government have taken some 
        actions to attract qualified individuals to careers in aviation 
        and aerospace and to retain qualified individuals in such 
        careers.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) public and private education institutions should make 
        available to students and parents information on approved 
        programs of study and career pathways, including career 
        exploration, work-based learning opportunities, dual and 
        concurrent enrollment opportunities, and guidance and 
        advisement resources;
          (2) public and private education institutions should partner 
        with aviation and aerospace companies to promote career paths 
        available within the industry and share information on the 
        unique benefits and opportunities the career paths offer;
          (3) aviation companies, including air carriers, 
        manufacturers, commercial space companies, unmanned aircraft 
        system companies, and repair stations, should create 
        opportunities, through apprenticeships or other mechanisms, to 
        attract young people to aviation and aerospace careers and to 
        enable individuals to gain the critical skills needed to thrive 
        in such professions; and
          (4) the Federal Government should consider the needs of men 
        and women interested in pursuing careers in the aviation and 
        aerospace industry, the long-term personnel needs of the 
        aviation and aerospace industry, and the role of aviation in 
        the United States economy in the creation and administration of 
        educational and financial aid programs.

SEC. 628. FUTURE AVIATION AND AEROSPACE WORKFORCE STUDY.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Comptroller General of the United States shall conduct 
a study--
          (1) to identify the factors influencing the supply of 
        individuals pursuing a career in the aviation or aerospace 
        industry; and
          (2) to identify best practices or programs to incentivize, 
        recruit, and retain young people in aviation and aerospace 
        professions.
  (b) Consultation.--The Comptroller General shall conduct the study in 
consultation with--
          (1) appropriate Federal agencies; and
          (2) the aviation and aerospace industry, institutions of 
        higher education, and labor stakeholders.
  (c) Report to Congress.--Not later than 1 year 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 and 
related recommendations.

SEC. 629. FAA LEADERSHIP ON CIVIL SUPERSONIC AIRCRAFT.

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall exercise leadership in the creation of Federal and 
international policies, regulations, and standards relating to the 
certification and safe and efficient operation of civil supersonic 
aircraft.
  (b) Exercise of Leadership.--In carrying out subsection (a), the 
Administrator shall--
          (1) consider the needs of the aerospace industry and other 
        stakeholders when creating policies, regulations, and standards 
        that enable the safe commercial deployment of civil supersonic 
        aircraft technology and the safe and efficient operation of 
        civil supersonic aircraft; and
          (2) obtain the input of aerospace industry stakeholders 
        regarding--
                  (A) the appropriate regulatory framework and timeline 
                for permitting the safe and efficient operation of 
                civil supersonic aircraft within United States 
                airspace, including updating or modifying existing 
                regulations on such operation;
                  (B) issues related to standards and regulations for 
                the type certification and safe operation of civil 
                supersonic aircraft, including noise certification, 
                including--
                          (i) the operational differences between 
                        subsonic aircraft and supersonic aircraft;
                          (ii) costs and benefits associated with 
                        landing and takeoff noise requirements for 
                        civil supersonic aircraft, including impacts on 
                        aircraft emissions;
                          (iii) public and economic benefits of the 
                        operation of civil supersonic aircraft and 
                        associated aerospace industry activity; and
                          (iv) challenges relating to ensuring that 
                        standards and regulations aimed at relieving 
                        and protecting the public health and welfare 
                        from aircraft noise and sonic booms are 
                        economically reasonable, technologically 
                        practicable, and appropriate for civil 
                        supersonic aircraft; and
                  (C) other issues identified by the Administrator or 
                the aerospace industry that must be addressed to enable 
                the safe commercial deployment and safe and efficient 
                operation of civil supersonic aircraft.
  (c) International Leadership.--The Administrator, in the appropriate 
international forums, shall take actions that--
          (1) demonstrate global leadership under subsection (a);
          (2) address the needs of the aerospace industry identified 
        under subsection (b); and
          (3) protect the public health and welfare.
  (d) 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 detailing--
          (1) the Administrator's actions to exercise leadership in the 
        creation of Federal and international policies, regulations, 
        and standards relating to the certification and safe and 
        efficient operation of civil supersonic aircraft;
          (2) planned, proposed, and anticipated actions to update or 
        modify existing policies and regulations related to civil 
        supersonic aircraft, including those identified as a result of 
        industry consultation and feedback; and
          (3) a timeline for any actions to be taken to update or 
        modify existing policies and regulations related to civil 
        supersonic aircraft.

SEC. 630. OKLAHOMA REGISTRY OFFICE.

  The Administrator of the Federal Aviation Administration shall 
consider the aircraft registry office in Oklahoma City, Oklahoma, as 
excepted during a Government shutdown or emergency (as it provides 
excepted services) to ensure that it remains open during any Government 
shutdown or emergency.

SEC. 631. FOREIGN AIR TRANSPORTATION UNDER UNITED STATES-EUROPEAN UNION 
                    AIR TRANSPORT AGREEMENT.

  (a) Certain Foreign Air Transportation Permits.--The Secretary of 
Transportation may not issue a permit under section 41302 of title 49, 
United States Code, or an exemption under section 40109 of such title, 
authorizing a person to provide foreign air transportation as a foreign 
air carrier under the United States-European Union Air Transport 
Agreement of April 2007 (as amended) in a proceeding in which the 
applicability of Article 17 bis of such Agreement has been raised by an 
interested person, unless the Secretary--
          (1) finds that issuing the permit or exemption would be 
        consistent with the intent set forth in Article 17 bis of the 
        Agreement, that opportunities created by the Agreement do not 
        undermine labor standards or the labor-related rights and 
        principles contained in the laws of the respective parties to 
        the Agreement; and
          (2) imposes on the permit or exemption such conditions as may 
        be necessary to ensure that the person complies with the intent 
        of Article 17 bis.
  (b) Public Interest Test.--Section 41302(2) of title 49, United 
States Code, is amended--
          (1) in subparagraph (A) by striking ``under an agreement with 
        the United States Government; or'' and inserting ``; and''; and
          (2) in subparagraph (B) by striking ``the foreign air 
        transportation'' and inserting ``after considering the totality 
        of the circumstances, including the factors set forth in 
        section 40101(a), the foreign air transportation''.
  (c) Public Interest Requirements.--
          (1) Policy.--Section 40101(a) of title 49, United States 
        Code, is amended by adding at the end the following:
          ``(17) preventing entry into United States markets by flag of 
        convenience carriers.''.
          (2) International air transportation.--Section 40101(e)(9) of 
        title 49, United States Code, is amended--
                  (A) in subparagraph (D) by striking ``and'' at the 
                end;
                  (B) in subparagraph (E) by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(F) erosion of labor standards associated with flag 
                of convenience carriers.''.
          (3) Flag of convenience carrier defined.--Section 40102(a) of 
        title 49, United States Code, as amended by this Act, is 
        further amended by adding at the end the following:
          ``(49) `flag of convenience carrier' means a foreign air 
        carrier that is established in a country other than the home 
        country of its majority owner or owners in order to avoid 
        regulations of the home country.''.

SEC. 632. TRAINING ON HUMAN TRAFFICKING FOR CERTAIN STAFF.

  (a) In General.--Chapter 447 of title 49, United States Code, as 
amended by this Act, is further amended by adding at the end the 
following:

``Sec. 44737. Training on human trafficking for certain staff

  ``In addition to other training requirements, each air carrier shall 
provide training--
          ``(1) to ticket counter agents, gate agents, and other air 
        carrier workers whose jobs require regular interaction with 
        passengers; and
          ``(2) on recognizing and responding to potential human 
        trafficking victims.''.
  (b) Clerical Amendment.--The analysis for chapter 447 of title 49, 
United States Code, as amended by this Act, is further amended by 
adding at the end the following:

``44737. Training on human trafficking for certain staff.''.

SEC. 633. PART 107 IMPLEMENTATION IMPROVEMENTS.

  (a) In General.--Not later than 30 days after the date of enactment 
of this section, the Administrator of the Federal Aviation 
Administration shall publish a direct final rule--
          (1) revising section 107.205 of title 14, Code of Federal 
        Regulations, by striking the second sentence of subsections (a) 
        and (c); and
          (2) revising section 107.25 of such title by striking ``and 
        is not transporting another person's property for compensation 
        or hire''.
  (b) Determination of Waiver.--In determining whether to grant a 
waiver under part 107 of title 14, Code of Federal Regulations, to 
authorize transportation of another's property for compensation or hire 
beyond the visual line of sight of the remote pilot, from a moving 
vehicle, or over people, the Administrator shall consider the 
technological capabilities of the unmanned aircraft system, the 
qualifications of the remote pilot, and the operational environment.

SEC. 634. PART 107 TRANSPARENCY AND TECHNOLOGY IMPROVEMENTS.

  (a) Transparency.--Not later than 30 days after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall publish on the Federal Aviation Administration website a 
representative sample of the safety justifications, offered by 
applicants for small unmanned aircraft system waivers and airspace 
authorizations, that have been approved by the Administration for each 
regulation waived or class of airspace authorized, except that any 
published justification shall not reveal proprietary or commercially 
sensitive information.
  (b) Technology Improvements.--Not later than 90 days after the date 
of enactment of this Act, the Administrator shall revise the online 
waiver and certificates of authorization processes--
          (1) to provide real time confirmation that an application 
        filed online has been received by the Administration; and
          (2) to provide an applicant with an opportunity to review the 
        status of the applicant's application.

SEC. 635. PROHIBITIONS AGAINST SMOKING ON PASSENGER FLIGHTS.

  Section 41706 of title 49, United States Code, is amended--
          (1) by redesignating subsection (d) as subsection (e); and
          (2) by inserting after subsection (c) the following:
  ``(d) Electronic Cigarettes.--
          ``(1) Inclusion.--The use of an electronic cigarette shall be 
        treated as smoking for purposes of this section.
          ``(2) Electronic cigarette defined.--In this section, the 
        term `electronic cigarette' means a device that delivers 
        nicotine to a user of the device in the form of a vapor that is 
        inhaled to simulate the experience of smoking.''.

SEC. 636. CONSUMER PROTECTION REQUIREMENTS RELATING TO LARGE TICKET 
                    AGENTS.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Secretary of Transportation shall issue a final rule 
to require large ticket agents to adopt minimum customer service 
standards.
  (b) Purpose.--The purpose of the final rule shall be to ensure that, 
to the maximum extent practicable, there is a consistent level of 
consumer protection regardless of where consumers purchase air fares 
and related air transportation services.
  (c) Standards.--In issuing the final rule, the Secretary shall 
consider, at a minimum, establishing standards for--
          (1) providing prompt refunds when ticket refunds are due, 
        including fees for optional services that consumers purchased 
        but were not able to use due to a flight cancellation or 
        oversale situation;
          (2) providing an option to hold a reservation at the quoted 
        fare without payment, or to cancel without penalty, for 24 
        hours;
          (3) disclosing cancellation policies, seating configurations, 
        and lavatory availability with respect to flights;
          (4) notifying customers in a timely manner of itinerary 
        changes; and
          (5) responding promptly to customer complaints.
  (d) Definitions.--In this section, the following shall apply:
          (1) Ticket agent.--
                  (A) In general.--Subject to subparagraph (B), the 
                term ``ticket agent'' has the meaning given that term 
                in section 40102(a) of title 49, United States Code.
                  (B) Inclusion.--The term ``ticket agent'' includes a 
                person who acts as an intermediary involved in the sale 
                of air transportation directly or indirectly to 
                consumers, including by operating an electronic airline 
                information system, if the person--
                          (i) holds the person out as a source of 
                        information about, or reservations for, the air 
                        transportation industry; and
                          (ii) receives compensation in any way related 
                        to the sale of air transportation.
          (2) Large ticket agent.--The term ``large ticket agent'' 
        means a ticket agent with annual revenues of $100,000,000 or 
        more.

SEC. 637. AGENCY PROCUREMENT REPORTING REQUIREMENTS.

  Section 40110(d) of title 49, United States Code, is amended by 
adding at the end the following:
          ``(5) Annual report on the purchase of foreign manufactured 
        articles.--
                  ``(A) Report.--Not later than 90 days after the end 
                of the fiscal year, the Secretary of Transportation 
                shall submit a report to Congress on the dollar amount 
                of the acquisitions made by the agency from entities 
                that manufacture the articles, materials, or supplies 
                outside of the United States in such fiscal year.
                  ``(B) Contents.--The report required by subparagraph 
                (A) shall separately indicate--
                          ``(i) the dollar value of any articles, 
                        materials, or supplies purchased that were 
                        manufactured outside of the United States; and
                          ``(ii) a summary of the total procurement 
                        funds spent on goods manufactured in the United 
                        States versus funds spent on goods manufactured 
                        outside of the United States.
                  ``(C) Availability of report.--The Secretary shall 
                make the report under subparagraph (A) publicly 
                available on the agency's website not later than 30 
                days after submission to Congress.''.

SEC. 638. ZERO-EMISSION VEHICLES AND TECHNOLOGY.

  (a) Passenger Facility Charge Eligibility.--Section 40117(a)(3) of 
title 49, United States Code, is amended by adding at the end the 
following:
                  ``(H) A project for--
                          ``(i) converting or retrofitting vehicles and 
                        ground support equipment into eligible zero-
                        emission vehicles and equipment (as defined in 
                        section 47102); or
                          ``(ii) acquiring, by purchase or lease, 
                        eligible zero-emission vehicles and equipment 
                        (as defined in section 47102).''.
  (b) Airport Improvement Program Eligibility.--
          (1) Airport development defined.--Section 47102(3) of title 
        49, United States Code, is amended by adding at the end the 
        following:
                  ``(P) converting or retrofitting vehicles and ground 
                support equipment into eligible zero-emission vehicles 
                and equipment or acquiring, by purchase or lease, 
                eligible zero-emission vehicles and equipment.
                  ``(Q) constructing or modifying airport facilities to 
                install a microgrid in order to provide increased 
                resilience to severe weather, terrorism, and other 
                causes of grid failures.''.
          (2) Additional definitions.--Section 47102 of title 49, 
        United States Code, as amended by this Act, is further amended 
        by adding at the end the following:
          ``(30) `eligible zero-emission vehicle and equipment' means a 
        zero-emission vehicle, equipment related to such a vehicle, and 
        ground support equipment that includes zero-emission technology 
        that is--
                  ``(A) used exclusively at a commercial service 
                airport; or
                  ``(B) used exclusively to transport people or 
                materials to and from a commercial service airport.
          ``(31) `microgrid' means a localized grouping of electricity 
        sources and loads that normally operates connected to and 
        synchronous with the traditional centralized electrical grid, 
        but can disconnect and function autonomously as physical or 
        economic conditions dictate.
          ``(32) `zero-emission vehicle' means a zero-emission vehicle 
        as defined in section 88.102-94 of title 40, Code of Federal 
        Regulations, or a vehicle that produces zero exhaust emissions 
        of any criteria pollutant (or precursor pollutant) under any 
        possible operational modes and conditions.''.
          (3) Special apportionment categories.--Section 47117(e)(1)(A) 
        of title 49, United States Code, is amended by inserting ``for 
        airport development described in section 47102(3)(P),'' after 
        ``under section 47141,''.
  (c) Zero-Emission Program.--Chapter 471 of title 49, United States 
Code, is amended--
          (1) by striking section 47136;
          (2) by redesignating section 47136a as section 47136; and
          (3) in section 47136, as so redesignated, by striking 
        subsections (a) and (b) and inserting the following:
  ``(a) In General.--The Secretary of Transportation may establish a 
pilot program under which the sponsors of not less than 10 public-use 
airports may use funds made available under this chapter or section 
48103 for use at such airports to carry out--
          ``(1) activities associated with the acquisition, by purchase 
        or lease, and operation of zero-emission vehicles, including 
        removable power sources for such vehicles; and
          ``(2) the construction or modification of infrastructure to 
        facilitate the delivery of fuel and services necessary for the 
        use of such vehicles.
  ``(b) Eligibility.--A public-use airport is eligible for 
participation in the program if the vehicles or ground support 
equipment are--
          ``(1) used exclusively at the airport; or
          ``(2) used exclusively to transport people or materials to 
        and from the airport.'';
          (4) in section 47136, as so redesignated, by striking 
        subsections (d) and (e) and inserting the following:
  ``(d) Federal Share.--The Federal share of the cost of a project 
carried out under the program shall be the Federal share specified in 
section 47109.
  ``(e) Technical Assistance.--
          ``(1) In general.--The sponsor of a public-use airport may 
        use not more than 10 percent of the amounts made available to 
        the sponsor under the program in any fiscal year for--
                  ``(A) technical assistance; and
                  ``(B) project management support to assist the 
                airport with the solicitation, acquisition, and 
                deployment of zero-emission vehicles, related 
                equipment, and supporting infrastructure.
          ``(2) Providers of technical assistance.--To receive the 
        technical assistance or project management support described in 
        paragraph (1), participants in the program may use--
                  ``(A) a nonprofit organization selected by the 
                Secretary; or
                  ``(B) a university transportation center receiving 
                grants under section 5505 in the region of the 
                airport.'';
          (5) in section 47136, as so redesignated, in subsection (f) 
        by striking ``section 47136'' and inserting ``the inherently 
        low emission airport vehicle pilot program''; and
          (6) in section 47136, as so redesignated, by adding at the 
        end the following:
  ``(g) Allowable Project Cost.--The allowable project cost for the 
acquisition of a zero-emission vehicle shall be the total cost of 
purchasing or leasing the vehicle, including the cost of technical 
assistance or project management support described in subsection (e).
  ``(h) Flexible Procurement.--A sponsor of a public-use airport may 
use funds made available under the program to acquire, by purchase or 
lease, a zero-emission vehicle and a removable power source in separate 
transactions, including transactions by which the airport purchases the 
vehicle and leases the removable power source.
  ``(i) Testing Required.--A sponsor of a public-use airport may not 
use funds made available under the program to acquire a zero-emission 
vehicle unless that make, model, or type of vehicle has been tested by 
a Federal vehicle testing facility acceptable to the Secretary.
  ``(j) Removable Power Source Defined.--In this section, the term 
`removable power source' means a power source that is separately 
installed in, and removable from, a zero-emission vehicle and may 
include a battery, a fuel cell, an ultra-capacitor, or other advanced 
power source used in a zero-emission vehicle.''.
  (d) Clerical Amendment.--The analysis for chapter 471 of title 49, 
United States Code, is amended by striking the items relating to 
sections 47136 and 47136a and inserting the following:

``47136. Zero-emission airport vehicles and infrastructure.''.

SEC. 639. EMPLOYEE ASSAULT PREVENTION AND RESPONSE PLANS.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, each air carrier operating under part 121 of title 14, 
Code of Federal Regulations (in this section referred to as a ``part 
121 air carrier''), shall submit to the Administrator of the Federal 
Aviation Administration for review and acceptance an Employee Assault 
Prevention and Response Plan related to the customer service agents of 
the air carrier and that is developed in consultation with the labor 
union representing such agents.
  (b) Contents of Plan.--An Employee Assault Prevention and Response 
Plan submitted under subsection (a) shall include the following:
          (1) Reporting protocols for air carrier customer service 
        agents who have been the victim of a verbal or physical 
        assault.
          (2) Protocols for the immediate notification of law 
        enforcement after an incident of verbal or physical assault 
        committed against an air carrier customer service agent.
          (3) Protocols for informing Federal law enforcement with 
        respect to violations of section 46503 of title 49, United 
        States Code.
          (4) Protocols for ensuring that a passenger involved in a 
        violent incident with a customer service agent of an air 
        carrier is not allowed to move through airport security or 
        board an aircraft until appropriate law enforcement has had an 
        opportunity to assess the incident and take appropriate action.
          (5) Protocols for air carriers to inform passengers of 
        Federal laws protecting Federal, airport, and air carrier 
        employees who have security duties within an airport.
  (c) Employee Training.--A part 121 air carrier shall conduct initial 
and recurrent training for all employees, including management, of the 
air carrier with respect to the plan required under subsection (a), 
which shall include training on de-escalating hostile situations, 
written protocols on dealing with hostile situations, and the reporting 
of relevant incidents.

SEC. 640. STUDY ON TRAINING OF CUSTOMER-FACING AIR CARRIER EMPLOYEES.

  (a) In General.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Transportation shall conduct a study on 
the training received by customer-facing employees of air carriers.
  (b) Contents.--The study shall include--
          (1) an analysis of the training received by customer-facing 
        employees with respect to the management of disputes on 
        aircraft; and
          (2) an examination of how institutions of higher learning, in 
        coordination with air carriers, customer-facing employees and 
        their representatives, consumer advocacy organizations, and 
        other stakeholders, could--
                  (A) review such training and related practices;
                  (B) produce recommendations; and
                  (C) if determined appropriate, provide supplemental 
                training.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, 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.

SEC. 641. MINIMUM DIMENSIONS FOR PASSENGER SEATS.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, and after providing notice and an opportunity for comment, 
the Administrator of the Federal Aviation Administration shall issue 
regulations that establish minimum dimensions for passenger seats on 
aircraft operated by air carriers in interstate air transportation or 
intrastate air transportation, including minimums for seat pitch, 
width, and length, and that are necessary for the safety and health of 
passengers.
  (b) Definitions.--The definitions contained in section 40102(a) of 
title 49, United States Code, apply to this section.

SEC. 642. STUDY OF GROUND TRANSPORTATION OPTIONS.

  Not later than 1 year after the date of enactment of this Act, the 
Comptroller General of the United States shall conduct a study that 
examines the ground transportation options at the Nation's 10 busiest 
airports in order to--
          (1) understand the impact of new and emerging transportation 
        options for travelers to get into and out of airports;
          (2) determine whether it is appropriate to use airport 
        improvement funds and revenues from passenger facility charges 
        to address traffic congestion and passenger travel times 
        between urban commercial centers and airports; and
          (3) review guidelines and requirements for airport 
        improvement funds and passenger facility charges to determine 
        under what conditions such funds may be used to address traffic 
        congestion in urban commercial centers for travel to airports.

                         Purpose of Legislation

    H.R. 2997, the 21st Century Aviation Innovation, Reform, 
and Reauthorization Act (21st Century AIRR Act), as amended, 
reauthorizes the Nation's aviation programs, including the 
Federal Aviation Administration's (FAA) safety and 
infrastructure programs, the Department of Transportation's 
(DOT) aviation consumer protection programs, and other 
aviation-related programs. It transfers operation of air 
traffic control (ATC) services currently provided by the FAA to 
an independent, not-for-profit corporate entity. H.R. 2997, as 
amended, establishes a stable, self-sustaining, cost-based user 
fee structure to finance the entity. The bill includes 
provisions to guide the transition from an FAA-operated service 
to one provided by the new entity. H.R. 2997, as amended, also 
reforms and streamlines the FAA's various safety, oversight, 
and certification programs to foster the more efficient use of 
government and private sector resources and makes various 
conforming amendments for purposes of consistency.

                  Background and Need for Legislation

    Aviation is a major driver of economic growth and the ATC 
system is an essential component of this important sector of 
the economy. According to the FAA, civil aviation contributes 
roughly $1.6 trillion in total economic activity and supports 
over 11 million jobs.\1\ United States airspace, the busiest 
and most expansive in the world, covers roughly 30 million 
square miles--constituting more than 17 percent of the world's 
airspace.\2\ The ATC system is operated by the FAA's more than 
14,000 federal air traffic controllers in 317 air traffic 
control facilities.\3\ Every day, air traffic controllers 
safely handle more than 50,000 operations.\4\ The FAA also has 
safety oversight of civil aviation, including regulatory 
oversight of airlines, airports, aviation manufacturers, 
pilots, controllers, flight attendants, general aviation 
operators, commercial space operators and launch sites, and 
unmanned aircraft systems and their operators.
---------------------------------------------------------------------------
    \1\Federal Aviation Administration, The Economic Impact of Civil 
Aviation on the U.S. Economy, November 2016, p. 3, available at https:/
/www.faa.gov/air_traffic/publications/media/2016-economic-impact-
report_FINAL.pdf.
    \2\Federal Aviation Administration, The Economic Impact of Civil 
Aviation on the U.S. Economy, January 2015, p. 1. https://www.faa.gov/
air_traffic/publications/media/2015-economic-impact-report.pdf.
    \3\Federal Aviation Administration, A Plan for the Future: 10-Year 
Strategy for the Air Traffic Control Workforce, 2015-2014, p. 10, and 
https://www.faa.gov/jobs/career_fields/aviation_careers/atc_roles.
    \4\FAA Press Release, July 6, 2011. https://www.faa.gov/news/
press_releases/news_story.cfm?newsId=12903.
---------------------------------------------------------------------------
    While the United States has one of the safest ATC systems 
in the world, the system has struggled to keep up with 
increasing demand. According to the FAA, airline delays and 
cancellations cost passengers, shippers, and airlines nearly 
$33 billion annually.\5\ The FAA projects passenger growth to 
average two percent per year, reaching one billion passengers 
by 2029.\6\ To help the ATC system better prepare for this 
forecasted growth, the FAA has been working for decades to 
modernize the system, which remains based on World War II-era 
radar technology. Without modernization, controllers and 
aircraft operators will continue to be forced to use the 
airspace in a very inefficient way.
---------------------------------------------------------------------------
    \5\Nextor, Total Delay Impact Study: A Comprehensive Assessment of 
the Costs and Impacts of Flight Delay in the United States, Final 
Report, October 2010, p. vii http://www.isr.umd.edu/NEXTOR/pubs/
TDI_Report_Final_10_18_10_V3.pdf.
    \6\FAA Press Release, March 16, 2015. https://www.faa.gov/news/
press_releases/news_story.cfm?newsId=18434.
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                                NEXTGEN

    In 2003, the FAA began its most recent effort to modernize 
the Nation's ATC system, known as ``NextGen.'' Originally, 
NextGen was intended to transform the ATC system from a radar-
based system to a satellite-based system. However, according to 
government reports, NextGen, initially marketed as a 20-year, 
$40 billion program, has been plagued by decades of cost and 
schedule overruns and has produced only incremental 
improvements in capacity and safety. Passengers and aircraft 
operators have seen limited benefits from recent FAA 
modernization programs and those benefits are certainly not in 
line with taxpayer dollars invested in NextGen--over $7 billion 
to date.\7\
---------------------------------------------------------------------------
    \7\Letter from Calvin Scovel, Inspector General, U.S. Department of 
Transportation, to Bill Shuster, Chairman, House Committee on 
Transportation and Infrastructure, September 30, 2016.
---------------------------------------------------------------------------
    According to the Department of Transportation Inspector 
General (DOT IG), ``since its inception a decade ago, FAA's 
progress in implementing NextGen has not met the expectations 
of Congress and industry stakeholders, and key modernization 
efforts have experienced significant cost increases and 
schedule delays.''\8\ In looking at what the FAA has promised 
NextGen would achieve over the years, Calvin Scovel, the DOT 
IG, has warned, ``the initial estimates from nine or 10 years 
back called for $20 billion in federal investments, $20 billion 
in private investments with a stated goal of completing 
implementation of the program by 2025. . . . We're clearly not 
going to make it with a total of $40 billion in investments, 
federal and private. We're probably looking at years beyond 
2025--perhaps another 10 even. We're probably also looking at 
total expenditures on the magnitude two to three times that of 
the initial $40 billion.''\9\
---------------------------------------------------------------------------
    \8\Office of Inspector General, U.S. Department of Transportation, 
FAA Made Limited Progress in Implementing NextGen Provisions of the FAA 
Modernization and Reform Act of 2012, AV-2014-027, Jan. 28, 2014, p. 2.
    \9\Statement of Calvin Scovel, Inspector General, U.S. Department 
of Transportation, before the House Aviation Subcommittee, Hearing on 
ATC Modernization, February 5, 2014; see also, Statement of Calvin 
Scovel, Inspector General, U.S. Department of Transportation, before 
the House Transportation and Infrastructure Committee, The Need to 
Reform FAA and Air Traffic Control to Build a 21st Century Aviation 
System for America, May 17, 2017.
---------------------------------------------------------------------------
    Government auditing reports outline ongoing troubles with 
the FAA's delivery and implementation of ATC modernization 
programs. In a 2016 report, the DOT IG found that eight of 
FAA's 15 ongoing major system acquisitions experienced a 
cumulative cost increase of $3.8 billion beyond original 
estimates and delays ranging from seven to 174 months, with an 
average delay of 51 months.\10\ Similarly, according to the 
Government Accountability Office (GAO), ``[t]he three [ATC] 
programs with the largest cost increases--more than $4 
billion--are key to ATC modernization.''\11\ Most recently, the 
DOT IG testified before the Transportation and Infrastructure 
Committee stating, ``FAA's reforms have also fallen short in 
improving its delivery of new technologies and capabilities. 
Major projects--including some critical to NextGen--have 
experienced cost increases and schedule slips . . . several 
systemic issues underlie FAA's problems in delivering new 
technologies on time and within budget. These include 
overambitious plans, unreliable cost and schedule estimates, 
unstable requirements, software development problems, poorly 
defined benefits, and ineffective contract and program 
management.''\12\
---------------------------------------------------------------------------
    \10\Office of the Inspector General, U.S. Department of 
Transportation, FAA Reforms Have Not Achieved Expected Cost, Efficiency 
and Modernization Outcomes, AV-2016-15, January 20, 2016, p. 13.
    \11\U.S. Government Accountability Office, Air Traffic Control 
Modernization: Management Challenges Associated with Program Costs and 
Schedules Could Hinder NextGen Implementation, GAO-12-223, February 
2012, p. 12.
    \12\Statement of Calvin Scovel, Inspector General, U.S. Department 
of Transportation, before the House Transportation and Infrastructure 
Committee, The Need to Reform FAA and Air Traffic Control to Build a 
21st Century Aviation System for America, May 17, 2017.
---------------------------------------------------------------------------
    The extent to which FAA realigns and consolidates ATC 
facilities is another important component of the agency's 
NextGen implementation efforts. To comply with the law, the FAA 
provided Congress with a plan for consolidating and realigning 
its facilities. The DOT IG found that the plan is 
``significantly less comprehensive than previous consolidation 
plans . . . ,'' and does not include a process for realigning 
and consolidating facilities that manage high-altitude 
traffic.\13\ Further, in another report, the DOT IG found that 
despite the fact that FAA's air traffic operations dropped 23 
percent between fiscal years 2000 and 2012, the FAA's ATC 
facility footprint has remained essentially unchanged.\14\
---------------------------------------------------------------------------
    \13\Office of the Inspector General, U.S. Department of 
Transportation, FAA's Implementation of the FAA Modernization and 
Reform Act of 2012 Remains Incomplete, CC-2014-010, February 5, 2014, 
p. 3.
    \14\Office of the Inspector General, U.S. Department of 
Transportation, FAA Reforms Have Not Achieved Expected Cost, 
Efficiency, and Modernization Outcomes, January 15, 2016, AV-2016-015, 
pp. 8-9.
---------------------------------------------------------------------------
    Finally, the DOT IG found ``. . . FAA's organizational 
culture . . . has been slow to embrace NextGen's 
transformational vision.''\15\ Gaps in leadership have further 
undermined the Agency's efforts to advance NextGen.''\16\ A 
recent GAO survey found that aviation stakeholders lack 
confidence in FAA's ability to implement ATC modernization.\17\ 
More than three times as many of the stakeholders said that 
FAA's overall implementation of NextGen was not going well than 
those who said it was going well.\18\
---------------------------------------------------------------------------
    \15\Id.
    \16\Supra note 12, p. 3.
    \17\U.S. Government Accountability Office, Air Traffic Control 
System: Selected Stakeholders' Perspectives on Operations, 
Modernization, and Structure, September 2014, GAO-14-770, p. 11.
    \18\Id.
---------------------------------------------------------------------------

 OVERVIEW OF PREVIOUS AIR TRAFFIC CONTROL REFORM EFFORTS IN THE UNITED 
                                 STATES

    In 1981, the FAA began an effort to modernize the ATC 
system by updating facilities and equipment to meet the 
anticipated demands of a growing volume of post-deregulation 
air traffic.\19\ At the time, the modernization was estimated 
to cost roughly $12 billion\20\ and take more than 10 years to 
complete.\21\ However, in the ensuing years the effort 
encountered cost overruns, schedule delays, and performance 
shortfalls, which resulted in calls to reform the FAA. There 
have been previous bipartisan ATC reform recommendations 
calling for an independent, nongovernmental, self-financing 
entity, including:
---------------------------------------------------------------------------
    \19\This included plans to replace the computers at air route 
traffic control centers with new software, consoles and displays, 
facility consolidation, new secondary radars, upgraded weather services 
and a new landing system. U.S. Government Accountability Office, FAA's 
Plan to Improve the Air Traffic Control System, AFMD-83-34, 1983 
available at: http://www.gao.gov/assets/140/139683.pdf.
    \20\U.S. Government Accountability Office, Transportation: 
Examination of the Federal Aviation Administration's Plan for the 
National Airspace System--Interim Report, AFMD-82-66, 1982, p.2. This 
report claims initial estimates to be roughly $10 billion; however, a 
later GAO report states the $12 billion figure.
    \21\Gerald L. Dillingham, U.S. Government Accountability Office, 
Testimony before the Subcommittee on Aviation, Committee on 
Transportation and Infrastructure, House of Representatives, FAA's 
Modernization Efforts--Past, President and Future, October 30, 2003, p. 
1.
---------------------------------------------------------------------------
          --In 1988, the Aviation Safety Commission urged 
        creation of a self-financing air navigation service 
        provider free of federal personnel and procurement 
        rules, to be overseen by a board that would include 
        industry stakeholders.\22\
---------------------------------------------------------------------------
    \22\Aviation Safety Commission, Aviation Safety Commission Final 
Report and Recommendations, April 1988, p. 1 The Aviation Safety 
Commission was created under the Aviation Safety Commission Act of 1986 
(P.L. 99-591). The Commission was created to conduct an intensive 
inquiry into the safety of the nation's aviation system.
---------------------------------------------------------------------------
          --In its 1993 report, the National Commission to 
        Ensure a Strong Competitive Airline Industry, chaired 
        by former Virginia Governor Gerald Baliles, recommended 
        that the FAA be ``reinvented'' and restructured as an 
        independent federal corporate entity, with its 
        expenditures and revenues removed from the federal 
        budget.\23\
---------------------------------------------------------------------------
    \23\The National Commission to Ensure a Strong Competitive Airline 
Industry, Change, Challenge and Competition: A Report to the President 
and Congress, August 1993, pp. 8-9.
---------------------------------------------------------------------------
          --Also in 1993, then-Vice President Al Gore's task 
        force on government reorganization proposed a detailed 
        plan for shifting ATC to a user-fee supported 
        government corporation to be called the U.S. Air 
        Traffic Services Corporation (USATS).
          --In 1997, the National Civil Aviation Review 
        Commission, chaired by former Secretary of 
        Transportation Norman Mineta, recommended a financially 
        self-supporting ATC entity within the FAA.\24\ Cost-
        based user fees from airlines would provide a revenue 
        stream outside the federal budget process and support 
        bonding to finance large-scale modernization.\25\
---------------------------------------------------------------------------
    \24\National Civil Aviation Review Commission, Avoiding Aviation 
Gridlock and Reducing the Accident Rate, December 1997.
    \25\Id. at 144.
---------------------------------------------------------------------------
          --In 2007, the Bush administration called for a 
        hybrid, cost-based system for financing FAA programs, 
        under which commercial airlines and business jet 
        operators would pay direct charges for ATC services 
        while general aviation (GA) non-jet operators would 
        continue to pay the GA fuel tax.\26\
---------------------------------------------------------------------------
    \26\Gerald L. Dillingham, U.S. Government Accountability Office, 
Testimony Before the Subcommittee on Aviation, Committee on 
Transportation and Infrastructure, Observations on Selected Changes to 
FAA's Funding and Budget Structure in the Administration's 
Reauthorization Program, GAO-07625T, March 21, 2007, p. 5.
---------------------------------------------------------------------------
    Congress responded by enacting only portions of the Baliles 
and Mineta commissions' recommendations.\27\ In 1995, Congress 
passed legislation exempting FAA from most federal personnel 
rules and allowed the agency to implement a new personnel 
management system that provided greater flexibility in hiring, 
training, and compensating personnel.\28\ In 1996, other 
legislation was passed that included additional personnel 
reforms and required the agency to establish a cost accounting 
system.\29\ In 1995, Congress also granted FAA relief from 
principal federal acquisition laws and regulations.\30\ All of 
the reforms were intended to allow the FAA to act more like a 
business. In April 2000, Congress required the appointment of a 
Chief Operating Officer to oversee the day-to-day operation and 
modernization of the ATC system.\31\ However, Congress rejected 
the proposal to shift from excise taxes to user fees.\32\ 
Similarly, the 110th Congress did not include the Bush 
administration's finance reform proposal in the FAA 
reauthorization legislation.
---------------------------------------------------------------------------
    \27\Robert W. Poole, The Urgent Need to Reform the FAA's Air 
Traffic Control System, March 2007, p. 18.
    \28\Fiscal Year 1996 Department of Transportation and Related 
Agencies Appropriations Act, Section 347(a), P.L. 104-50, Nov. 15, 
1995.
    \29\Federal Aviation Reauthorization Act of 1996, Sections 253 & 
276, P.L. 104-264, Oct. 9, 1996.
    \30\Fiscal Year 1996 Department of Transportation and Related 
Agencies Appropriations Act, Section 347(a), P.L. 104-50, Nov. 15, 
1995.
    \31\Wendell H. Ford Aviation Investment and Reform Act for the 21st 
Century, Section 303, P.L. 106-181, Apr. 5, 2000.
    \32\Robert W. Poole, The Urgent Need to Reform the FAA's Air 
Traffic Control System, March 2007, p. 18.
---------------------------------------------------------------------------
    In February 2016, an FAA reauthorization bill was 
introduced in the House of Representatives that included a 
proposal to divest ATC to a not-for-profit corporation subject 
to arms-length federal oversight and regulation.\33\ The 
proposal addressed matters including corporate governance, 
labor and employment policy, and transition processes. H.R. 
2997, as amended, includes many of the same provisions and 
also, based upon feedback from stakeholder groups and those 
with expertise, adds or changes other provisions related to 
specific oversight processes, governance, and continuity of 
service.
---------------------------------------------------------------------------
    \33\H.R. 4441, 114th Cong. (2016).
---------------------------------------------------------------------------

        THE CONTINUING NEED FOR ATC REFORM IN THE UNITED STATES

    In a January 2016 report, the DOT IG found that previous 
efforts by both the executive and legislative branches to 
reform the FAA have failed.\34\ Since the implementation of FAA 
personnel and procurement reforms in the 1990's, costs to 
operate the ATC system have continued to rise while operational 
productivity has declined.\35\ Between fiscal years 1996 and 
2012, the DOT IG found that FAA's total budget grew by 95 
percent, from $8.1 billion to $15.9 billion, and its total 
costs for personnel, compensation, and benefits increased by 98 
percent, from $3.7 billion to $7.3 billion, while air traffic 
dropped 23 percent.\36\ The DOT IG attributed FAA's 
disappointing personnel and procurement reform outcomes largely 
to the agency's failure to take full advantage of its 
authorities when implementing new personnel systems, and not 
using business like practices to improve its operational 
efficiency and cost effectiveness.\37\ In addition, FAA's 
workforce levels have remained relatively constant over the 
past two decades and the number of air traffic facilities the 
FAA operates has not changed since 2000 despite the drop in air 
traffic.\38\ The DOT IG stated that FAA's organizational 
culture, which has been resistant to change, further deters its 
reform efforts.\39\
---------------------------------------------------------------------------
    \34\Department of Transportation, Office of Inspector General, FAA 
Reforms Have Not Achieved Expected Cost, Efficiency, and Modernization 
Outcomes, January 15, 2016, AV-2016-015, p. 2.
    \35\Id. at 8.
    \36\Id.
    \37\Id. at 2.
    \38\Id. at 8.
    \39\Id. at 2.
---------------------------------------------------------------------------
    Today, the FAA, like other federal agencies, must conduct 
capital project planning, including efforts to modernize the 
ATC system, on the basis of an annual congressional 
appropriations cycle. The agency is likewise impacted by 
sequestration, extensions, continuing resolutions, and 
government shutdowns. Three years of federal budget disputes; 
the FAA's decision in April 2013 to furlough ten percent of its 
air traffic controller workforce to meet sequester-driven 
budgetary cuts; the partial shutdown of the FAA in August 2011 
due to the lapse of FAA's operating authority; and the 
continuing schedule delays and cost overruns that have plagued 
FAA's efforts to modernize the ATC system, have all helped 
rekindle the debate over ATC reform. The lack of a steady, 
predictable funding stream, as well as short-term authorization 
extensions, are not conducive to the long-term planning needed 
to deliver large, multi-year capital projects like ATC 
modernization.
    The Reason Foundation, the Brookings Institution, and the 
Cato Institute have all found that aviation safety and 
efficiency would be enhanced by providing a steady, predictable 
funding stream (via direct charges paid by users) for ATC 
modernization, as well as more effective management.\40\ 
Proponents of ATC reform argue that, under some reform 
scenarios, a self-financed ATC service provider would access 
capital through the private markets.\41\ In addition, a self-
financed ATC service provider would be free from federal 
procurement regulations that, according to some observers, have 
prevented the FAA from purchasing and deploying new 
technologies in a timely, cost-efficient manner in some 
cases.\42\
---------------------------------------------------------------------------
    \40\Robert W. Poole, Why An Air Traffic Control Corporation Makes 
Sense, Reason Foundation Policy Study No. 278, February 2001, p. 15, 
available at: http://reason.org/files/
c1a82c766aec1c5b8ee55404ca00fb30.pdf; Chris Edwards, Privatize the 
FAA!, Cato Institute, April 24, 2013; and Dorothy Robyn, Air Support: 
Creating a Safer and More Reliable Air Traffic Control System, The 
Brookings Institution, July 2008, pp. 18-19, available at: http://
www.cato.org/publications/commentary/privatize-faa.
    \41\Robert W. Poole, Organization and Innovation in Air Traffic 
Control, Hudson Institute Initiative on Future Innovation, 2013, p. 5.
    \42\Id.
---------------------------------------------------------------------------
    At a March 24, 2015 Subcommittee on Aviation hearing, 
witnesses urged Congress to consider comprehensive reform of 
how the FAA is governed and financed.\43\ Dorothy Robyn, a 
former Clinton administration official, citing ongoing problems 
with NextGen implementation, declining budget projections for 
FAA, and the prospect of another sequester-related shutdown, 
recommended that Congress move the Air Traffic Organization out 
of the FAA and replace the aviation excise taxes with cost-
based charges on commercial and business aircraft 
operators.\44\ Citing the success of commercialized ATC service 
providers abroad, all the witnesses supported separating ATC 
services from the FAA and establishing an independent, not-for-
profit corporation governed by stakeholders and financed by 
user fees to manage the Nation's ATC system.
---------------------------------------------------------------------------
    \43\Statements by Robert Poole, the Reason Foundation; Doug Parker, 
President and CEO, American Airlines, on behalf of A4A; Dorothy Robyn; 
and David Grizzle, former COO of the FAA, before the Subcommittee on 
Aviation, House Transportation and Infrastructure Committee, ``Options 
for FAA Air Traffic Control Reform'', March 24, 2015, available at: 
http://transport.house.gov/calendar/eventsingle.aspx?EventID=398745.
    \44\Statement of Dorothy Robyn, House Committee on Transportation 
and Infrastructure, Subcommittee on Aviation, ``Options for FAA Air 
Traffic Control Reform'', March 24, 2015, available at: http://
transport.house.gov/calendar/eventsingle.aspx?EventID=398745.
---------------------------------------------------------------------------
    Similarly, a wide range of aviation stakeholder groups have 
called for governance and/or finance reform of the FAA's ATC 
operations. In May 2015, the Eno Center for Transportation's 
NextGen Working Group issued a report on options for ATC reform 
in the United States.\45\ The Eno report recommended that ATC 
services should be taken out of the direct control of the 
federal government and be provided by a more independent 
organization, be it a non-profit organization or a government 
corporation.\46\ Under the Eno proposal, the entity would have 
a non-profit mandate, and all key stakeholders would be 
represented in a governing board.\47\ The Eno report called for 
replacing the current funding of the ATC system, with direct 
payments to the ATC provider.\48\
---------------------------------------------------------------------------
    \45\Eno Center for Transportation NextGen Working Group, Final 
Report, May 2015, available at: https://www.enotrans.org/wp-content/
uploads/wpsc/downloadables/NextGen-Final-Report-12am2.pdf.
    \46\Id. at 61.
    \47\Id.
    \48\Id.
---------------------------------------------------------------------------
    On February 1, 2016, a bipartisan group of former federal 
officials sent a letter to the House Committee on 
Transportation and Infrastructure calling for ``bipartisan 
support for transformational change'' of the ATC system, 
specifically the establishment of a federally chartered, non-
profit organization that would be governed and funded by the 
stakeholders and users of the aviation system.\49\ The 
officials asserted that Congress should enact reforms now given 
the fact that ATC infrastructure and technology are falling 
behind the world's ATC providers.\50\
---------------------------------------------------------------------------
    \49\ Letter from former Senators Byron Dorgan (D-ND) and Trent Lott 
(R-MS); former Secretaries of Transportation James Burnley, Norman 
Mineta, and Mary Peters; former FAA Administrator Randy Babbitt; former 
FAA Chief Operating Officers Russell Chew, Hank Krakowski, and David 
Grizzle; and former White House National Economic Council Special 
Assistant Dorothy Robyn to Bill Shuster, Chairman, Committee on 
Transportation and Infrastructure (Feb. 1, 2016).
    \50\ Id.
---------------------------------------------------------------------------
    At a May 17, 2017 Full Committee hearing, witnesses 
presented views in favor of separating ATC from the government 
and cited the FAA's performance record in support of ATC 
reform. Dorothy Robyn, the former Clinton Administration 
official, cited the incongruity of housing a technology service 
business within a federal safety regulator.\51\ Calvin Scovel 
III, the DOT IG, testified that targeted reforms of FAA 
programs and processes did not lead to the intended 
results.\52\ Finally, Paul Rinaldi, President of the National 
Air Traffic Controllers Association, indicated that unstable 
funding of the current system had resulted in systemic problems 
such as staffing shortfalls.\53\
---------------------------------------------------------------------------
    \51\ Statement of Dorothy Robyn, House Committee on Transportation 
and Infrastructure, ``The Need to Reform FAA and Air Traffic Control to 
Build a 21st Century Aviation System for America'', May 17, 2017, 
available at: https://transportation.house.gov/uploadedfiles/2017-05-
17_-_robyn_testimony.pdf.
    \52\ Statement of Calvin Scovel III, House Committee on 
Transportation and Infrastructure, ``The Need to Reform FAA and Air 
Traffic Control to Build a 21st Century Aviation System for America'', 
May 17, 2017, available at: https://transportation.house.gov/
uploadedfiles/2017-05-17_-_scovel_testimony.pdf.
    \53\ Statement of Paul Rinaldi, House Committee on Transportation 
and Infrastructure, ``The Need to Reform FAA and Air Traffic Control to 
Build a 21st Century Aviation System for America'', May 17, 2017, 
available at: https://transportation.house.gov/uploadedfiles/2017-05-
17_-_rinaldi_testimony.pdf.
---------------------------------------------------------------------------
    At a June 8, 2017 Full Committee hearing, Secretary of 
Transportation Elaine Chao provided testimony about the need 
for a nimble air traffic service provider. Secretary Chao cited 
the lack of flexibility within government and the problems 
caused by reliance upon federal appropriations and procurement 
as impediments to modernization. She also indicated that 
shifting ATC out of government is necessary to realize the 
continued innovation and modernization required to ensure U.S. 
leadership.\54\
---------------------------------------------------------------------------
    \54\ Statement of Secretary Elaine Chao, House Committee on 
Transportation and Infrastructure, ``Building a 21st Century 
Infrastructure for America: Federal Aviation Administration 
Authorization'', June 8, 2017, available at: https://
transportation.house.gov/uploadedfiles/2017-06-08_-
_secretary_chao_testimony.pdf.
---------------------------------------------------------------------------

         OVERVIEW OF FOREIGN AIR TRAFFIC CONTROL REFORM EFFORTS

    Since 1987, more than 60 nations have shifted the 
responsibility for providing ATC services from the aviation 
safety regulator to an independent, self-financed ATC service 
provider.\55\ While some of these service providers are 
government corporations, the ATC service providers of Canada 
(non-profit) and the United Kingdom (for profit) are private, 
and their respective governments regulate them, but do not run 
their day-to-day operations.\56\
---------------------------------------------------------------------------
    \55\Robert W. Poole, Reason Foundation, Testimony before the 
Committee on Transportation and Infrastructure, House of 
Representatives, Review of Air Traffic Control Reform Proposals, 
February 10, 2016, p. 3.
    \56\Robert W. Poole, Jr., The Urgent Need to Reform the FAA's Air 
Traffic Control System, Reason Foundation, March 2007, p. 12.
---------------------------------------------------------------------------
    The DOT IG conducted a study on the performance of four Air 
Navigation Service Providers (ANSPs).\57\ According to the DOT 
IG, since these countries separated their respective ANSPs, 
there has been no evidence of any degradation in aviation 
safety levels.\58\ Similarly, in a 2005 report that studied 
five independent, self-financed ATC service providers, the GAO 
found that the safety of ATC services ``remained the same or 
improved''; the nongovernmental, self-financing ATC service 
providers had lowered their costs and ``improved efficiency''; 
and all ATC service providers also invested in new technologies 
and equipment.\59\
---------------------------------------------------------------------------
    \57\Office of the Inspector General, U.S. Department of 
Transportation, There Are Significant Differences Between FAA and 
Foreign Countries' Processes for Operating Air Navigation Systems, AV-
2015-084, September 2, 2015. The ANSPs studied by the DOT IG included: 
Canada, France, Germany, and the United Kingdom.
    \58\Id. at 8.
    \59\ U.S. Government Accountability Office, Air Traffic Control: 
Characteristics and Performance of Selected International Air 
Navigation Service Providers and Lessons Learned from Their 
Commercialization, GAO-05-769, July 2005, p. 4. ANSPs studied included: 
Australia, Canada, Germany, New Zealand and the United Kingdom.
---------------------------------------------------------------------------
    In October 2014, the MITRE Corporation (MITRE) prepared a 
report at the request of the FAA on six international civil 
aviation authorities (CAAs).\60\ The six countries shared the 
experience of separating the ANSP from the government.\61\ In 
all cases, MITRE found that the separation of the ANSP from the 
CAA was reasonably successful.\62\ While there were 
difficulties in the shift to an independent regulator of a 
corporatized ANSP, adjustments were made in response to the 
difficulties encountered.\63\ The CAAs interviewed by MITRE 
were unanimous in stating that the separation of the ATC from 
the CAA was worth it.\64\ The benefits outlined in the study 
included increased focus on safety by the regulator and the 
ANSP, improved efficiency of the ANSP, reduction in total cost 
to users, and improved participation by aviation 
stakeholders.\65\
---------------------------------------------------------------------------
    \60\Dan Brown, Tom Berry, Steve Welman and E.J. Spear, The MITRE 
Corporation, CAA International Structures, October 2014.
    \61\Studied Canada, New Zealand, Australia, France, Germany, and 
the United Kingdom. The CAAs were selected because their level of 
technological sophistication is similar to the FAA's and because their 
countries share many common economic and political characteristics with 
the United States.
    \62\ Id. at 9.
    \63\Id.
    \64\Id.
    \65\Id. at 9-10.
---------------------------------------------------------------------------

21st Century Aviation Innovation, Reform, and Reauthorization Act

    The 21st Century AIRR Act creates the American Air 
Navigation Services Corporation (Corporation), an independent, 
federally chartered, not-for-profit corporation to operate and 
modernize ATC services.

Corporation and Governance

    The Corporation will be an independent entity completely 
outside the government and exempt from taxation as a not-for-
profit corporation. The federal government will not be liable 
for any action or inaction of the Corporation and will not 
explicitly or implicitly guarantee any debt or obligation of 
the Corporation. The Corporation, which will have all the 
powers and authorities of any other private corporation, will 
be responsible for providing ATC services and necessary safety 
information to ATC service users to ensure the safe and 
efficient management of air traffic.
    The Corporation will be governed by a Board of Directors. 
There will be 13 Directors, consisting of two appointed by the 
Secretary of Transportation (Secretary), two ``at-large'' 
Directors nominated by a two-thirds vote of the other 
Directors, the CEO, and eight Directors nominated by eight 
different aviation stakeholder panels, called Nomination 
Panels. With regard to the Nomination Panels, the Secretary, 
within 30 days of enactment, will identify stakeholder groups 
that will appoint representatives to the eight Nomination 
Panels. Each of the following eight aviation stakeholder 
communities will have a Nomination Panel: passenger air 
carriers, cargo air carriers, regional air carriers, general 
aviation (GA), business aviation, airports, air traffic 
controllers, and commercial pilots.
    The Board of Directors will be populated through a two-step 
process by which the Nomination Panels will nominate Directors 
to the Board. Before the date of transfer, each nomination 
panel submits to the Secretary a list, chosen by consensus, of 
four qualified individuals nominated to be Directors. The 
Secretary is required, no later than 30 days after the last 
nomination list submission, to appoint two individuals to be 
Directors, and select the appropriate number of individuals to 
be Directors from each list submitted by the nomination panels. 
After the date of transfer, the lists of four qualified 
individuals nominated to be Directors is submitted to the Board 
of Directors for selection. The Secretary continues the 
appointment of two Directors as needed to fill vacant seats.
    The Board's composition will be:
          --Two Directors appointed by the Secretary of 
        Transportation;
          --The Chief Executive Officer (CEO) of the 
        Corporation;
          --One Director nominated by the Passenger Air Carrier 
        Nomination Panel;
          --One Director nominated by the Cargo Air Carrier 
        Nomination Panel;
          --One Director nominated by the Regional Air Carrier 
        Nomination Panel;
          --One Director nominated by the General Aviation 
        Nomination Panel;
          --One Director nominated by the Business Aviation 
        Nomination Panel;
          --One Director nominated by the Air Traffic 
        Controller Nomination Panel;
          --One Director nominated by the Airport Nomination 
        Panel;
          --One Director nominated by the Commercial Pilot 
        Nomination Panel; and
          --Two ``at-large'' Directors nominated and selected 
        by the other Directors on the Board.
    The terms of the first Directors will expire two years 
after the date of transfer. Following the date of transfer, 
Directors will serve staggered terms. A Director can serve 
after the expiration of the Director's term until a successor 
has taken office. Directors are term-limited to eight years.
    The fiduciary duties of the Directors will be to the 
Corporation, not to the stakeholder groups that nominated them 
or the Nomination Panels. If a Director breaches the fiduciary 
duty to the Corporation, the Director must be removed, and the 
Board may pursue legal action. There are also certain 
qualifications for individuals to serve as Directors. Directors 
must be American citizens and are subject to restrictions that 
prohibit individuals with possible conflicts of interest from 
serving on the Board. No employees of the Corporation (except 
the CEO), government officials or employees, employees of any 
bargaining agent representing employees of the Corporation, or 
employees of any entity with a material interest as a user or 
supplier of the Corporation services can serve as a Director.
    A Director may be removed by the Board in accordance with 
the Corporation's bylaws. The Board is responsible for hiring a 
CEO to manage and direct the day-to-day operations of the 
Corporation, a Chief Financial Officer, and a Chief Operating 
Officer. The CEO, who must be an American citizen, will also be 
responsible for all officers and employees of the Corporation, 
and will serve at the pleasure of the Board. Compensation, 
including bonuses and other financial incentives, for the Board 
and CEO will be set forth in the bylaws and included in the 
Corporation's annual financial report. The Corporation is also 
required to establish a Compensation Committee.
    The Board will be responsible for corporate governance of 
the Corporation, and has the sole authority to amend corporate 
bylaws, adopt annual budgets, approve strategic plans, approve 
the issuance of bonds, and to hire a CEO. The Board will be 
required to maintain a Safety Committee composed of Directors 
to ensure the Corporation will maintain and improve upon the 
current high level of safety in the ATC system. The Board will 
also establish a Technology Committee.
    The Corporation will have an Advisory Board consisting of 
no more than 15 individuals representing interested persons, 
including: air carriers, GA, business aviation, commercial 
service airports; operators and manufacturers of commercial 
unmanned aircraft systems; appropriate labor organizations; the 
Department of Defense (DOD); and small communities. The 
Advisory Board will conduct activities directed by the Board of 
Directors and may on its own initiative study, report, and make 
ATC services-related recommendations to the Board of Directors. 
The Advisory Board will also make recommendations to the Board 
on the selection of ``at-large'' Directors.

Transition

    The Secretary will manage and oversee the transfer of ATC 
services to the Corporation to ensure that the transition 
receives the proper level of attention and to ensure that the 
FAA Administrator remains focused on the safe operation of the 
ATC services, near-term NextGen projects, and other important 
responsibilities. The transfer of operational control of ATC 
services, as well as all federal personnel, facilities, and 
activities needed to provide those services, will occur on 
October 1, 2020.
    Between date of enactment and date of transfer, there will 
be formal processes for determining which activities and 
personnel will move to the Corporation or be retained at the 
FAA. These processes include a transition team made up of 
different representatives from the FAA and the Corporation, to 
recommend processes for how the transition will be carried out. 
Other more informal processes will be taking place as well to 
ensure that inward-facing FAA protocols for ATC services are 
either carried over to the Corporation or rewritten as outward-
facing safety regulations. The processes and negotiations will 
involve the Corporation, the Secretary, the FAA, and 
appropriate labor organizations. To ensure Congress is kept 
well-informed on the transition, the DOT IG will submit 
quarterly reports on the progress of the transition.

Safety oversight and regulation of the Corporation

    The Secretary will be responsible for the performance-based 
safety oversight of the Corporation. Prior to the date of 
transfer, the Secretary will prescribe performance-based 
regulations and minimum safety standards for the Corporation's 
operation of ATC services. The regulations will include a 
safety management system (SMS) for the assessment and 
management of risk in all procedures, processes, and practices 
necessary to operate ATC services. Initially, this SMS will be 
based on the one currently used by the FAA, but specific safety 
review processes with the Secretary's approval will allow the 
Corporation to modify the SMS as needed over time. The safety 
standards combined with the SMS will ensure that the 
Corporation continues and improves upon the safety the ATC 
system currently enjoys.
    The Corporation will be required to maintain adequate 
levels of insurance and coverage to provide complete 
indemnification of the Corporation's employees and protect the 
Corporation from financial harm. As part of the safety 
oversight of the Corporation, the Secretary will determine what 
constitutes adequate levels of insurance.
    The Corporation, as an independent, not-for-profit, private 
corporation, will not exercise any regulatory authority, 
meaning the Secretary will be responsible for taking any 
regulatory action related to ATC services, including the 
reclassification of airspace or imposition of required equipage 
standards. The Corporation, as the provider of ATC services, 
will be in a unique position of being able to analyze how 
airspace or an air route should be configured. As part of the 
transition, the Secretary will establish a process for the 
expeditious review of proposed changes to the airspace by the 
Corporation. To be clear, the Corporation will only be able to 
suggest changes to airspace classifications or other similar 
changes, and the Secretary will be solely responsible for 
exercising regulatory power to enact those changes. The 
National airspace will remain a federally regulated, sovereign 
domain of the United States. The Corporation will simply 
provide ATC services to the users of the National airspace.

Financing

    The Corporation will be funded entirely through charges and 
fees assessed and collected from air traffic services users. 
The charges and fees must be consistent with a set of statutory 
charging principles including the following:
          --Charges and fees must be consistent with the 
        International Civil Aviation Organization's (ICAO) 
        Policies on Charges for Air Navigation Services, Ninth 
        Edition, 2012;
          --Charges for certain categories of users may be 
        charged on a flat-fee basis;
          --Charges and fees may not be discriminatory;
          --Charges and fees may not be structured in a manner 
        that incentivizes unsafe operations to avoid charges 
        and fees;
          --Access to airspace cannot be based on the level of 
        charges a user pays or whether the user is subject to 
        charges at all; and
          --Charges and fees may not violate any international 
        obligation of the United States.
          --Charges and fees may not be imposed for air traffic 
        services provided to public use aircraft under sections 
        40102(a) and 40125.
          --Charges may not be imposed on GA aircraft 
        operations under Parts 91, 135, 136, and 137 of Title 
        14, Code of Federal Regulations.
          --Charges and fees must be based on reasonable and 
        financially sound projections of what is needed to 
        provide the current and projected provision of air 
        traffic services.
    To reiterate, charges may not be imposed on aircraft 
operations under Parts 91, 135, 136, and 137 of Title 14, Code 
of Federal Regulations. These operations include private 
aviation, air ambulance, air taxi, agricultural, air tours, and 
certain industrial flights. GA users will support the aviation 
system just as they always have, through fuel taxes that are 
controlled by Congress. Further, military and other public 
aircraft flights will also be exempt from the charges.
    The Corporation's Board of Directors will be responsible 
for setting and approving the charges and fees for ATC 
services. The Secretary must approve initial charges and fees 
as well as any increases to the charges and fees following a 
public comment period. The Secretary must apply statutory 
criteria in reviewing such charges and fees proposals by the 
Corporation and the Secretary will also review any charge and 
fee assessments under dispute. Disputed decisions of the 
Secretary are subject to judicial review.
    As an independent, not-for-profit Corporation, the 
Corporation will be able to issue revenue bonds and other debt 
instruments in the private markets, providing more stable and 
effective capital financing, however, the Corporation will not 
be permitted to issue or sell equity shares or stock in the 
Corporation.

Employee Management

    Over 30,000 federal personnel will transfer from the FAA to 
the Corporation, including more than 14,000 air traffic 
controllers. A central tenant of the bill is that federal 
employees who transfer to the Corporation will be kept whole in 
terms of the benefits or compensation they received and were 
promised as federal employees. Transferred federal employees 
may retain their federal retirement and health insurance plans 
or opt for the benefit plans offered by the Corporation. For 
employees retaining their federal retirement and health 
insurance plans, the Corporation will pay any required 
deductions and employer contributions.
    To ensure total system continuity, many aspects of existing 
federal labor-management relations will be preserved through 
partial application of the laws that currently apply to the FAA 
and its labor organizations. The rights of air traffic 
controllers and other employees to participate in labor 
organizations and to collectively bargain will also be 
preserved. The Corporation must recognize and bargain with the 
labor organizations selected by the employees and comply with 
the terms of collective-bargaining agreements (CBAs) and 
arbitration awards in effect on the date of transfer until such 
agreements and awards expire or are lawfully altered or 
amended. CBAs must be effective for no less than two years.
    Because ATC services are so vital to the national economy, 
the Corporation's employees are prohibited from engaging in any 
strike or other organized disruption. Disputes arising from 
CBAs must be resolved through mediation. If mediation fails, 
the dispute will be resolved through binding arbitration. There 
is an absolute ban on striking.

Continuity of Air Service and Access

    Preserving air service and airspace access for all users of 
the National Airspace System (NAS), especially general and 
business aviation users, is critical to ensuring the success of 
American aviation. No airspace user may be denied access to 
airspace or air traffic services on the basis that a user is 
exempt from paying charges or fees.
    If the Corporation proposes an airspace or other change 
that materially reduces access to airspace or an airport, it 
triggers a multi-step review process by the Corporation and DOT 
to ensure that the reduction in access is mitigated, and the 
change is in the public interest. The process also includes the 
ability for users and communities to appeal the decision to the 
Secretary and the judicial system.
    The bill also directs the Secretary to develop a process 
for the Secretary to review any proposals to close an air 
traffic control tower that prior to the date of transfer was 
operated under the FAA's Contract Tower Program. The process 
would apply when the proposed closure would result in an 
airspace change and at the request of the airport sponsor. 
There are other types of changes or locations where changes may 
occur, that will merit special attention by the Secretary. For 
example, changes near major airports or specific national 
security or defense designations will have a longer review 
period than other airspace modification proposals.

                         BENEFITS OF ATC REFORM

    ATC reform would separate air traffic services from the 
federal regulator (the FAA) by transferring it to a federally 
chartered, independent, not-for-profit Corporation. Under the 
21st Century AIRR Act, ATC service would be provided by a not-
for-profit entity, while oversight and all regulation of the 
airspace would continue to be provided by the FAA. ATC reform 
will result in real benefits to the flying public, taxpayers, 
and other users of the aviation system, including--
          --Reducing the size of the Federal government. ATC 
        reform will result in more than 30,000 Federal 
        employees moving to the private sector, reducing the 
        size of the FAA significantly. The Federal employees 
        will be held harmless in their transition to the 
        private sector. But, it is important to note that the 
        very same air traffic controllers who are providing ATC 
        services as federal employees on the day before 
        transition will be back at work providing ATC services 
        as employees of the new service provider on the day 
        after transition. Continuity of air services will be 
        maintained, but the federal bureaucracy will be greatly 
        reduced.
          --Ensuring the travelling public is not charged twice 
        for ATC facilities they have already paid for. ATC 
        reform transfers all ATC assets to the new entity 
        without any charge. This is because the users of the 
        airspace and the travelling public have largely funded 
        ATC facilities and equipment through the Airport and 
        Airway Trust Fund. The Trust Fund receives its revenue 
        from taxes on passengers, air cargo, and aviation 
        fuels, meaning the users of the airspace and the 
        travelling public have largely funded the construction 
        of the system. Requiring payment for any property 
        transferred to the new service provider would result in 
        double-charging the travelling public that already paid 
        for the property in the first place. The new service 
        provider should use its capital to invest in new and 
        modern technologies rather than crumbling buildings and 
        antiquated computers.
          --Resolving the inherent conflict of interest that 
        exists when the regulator regulates itself. With ATC 
        reform, the FAA will continue to regulate and be able 
        to focus on the safety of the U.S. aviation system and 
        airspace. The new entity will provide and modernize ATC 
        services, nothing more. Since 1987, over 60 nations 
        have successfully separated their ATC service provider 
        from their government safety regulator. Overwhelming 
        evidence from U.S. government and other reports shows 
        that separating ATC operations has led to better 
        performance on safety, modernization, service quality, 
        cost, and financial stability. In 2014, the FAA asked 
        MITRE to investigate six international regulators to 
        determine the impact on the regulator after the service 
        provider had been spun off. MITRE concluded, ``The 
        collective experience . . . is quite good.''\66\ 
        Additionally, MITRE found that ``. . .in each case the 
        safety record of the [service provider] was equal to, 
        or better than, the record prior to the separation. . . 
        . ''\67\ The regulators interviewed were ``unanimous in 
        stating that the separation of the [regulator] from air 
        traffic service provision was worth it. Among the 
        benefits they expressed were an increased focus on 
        safety by the Regulator and the [service provider], 
        improved efficiency of the [service provider], 
        reduction in total cost to users, and improved 
        participation by aviation stakeholders.''\68\
---------------------------------------------------------------------------
    \66\ CAA International Structures, MITRE Corporation, p. 7 (October 
2014).
    \67\ Id. at 7.
    \68\ Id. at 9-10.
---------------------------------------------------------------------------
          --Lowering the cost of flight and protecting the 
        taxpayer. International experience has shown that the 
        efficiencies gained through ATC reform result in lower 
        costs for all system users. In Canada, inflation-
        adjusted ATC fees are now 45% lower than the aviation 
        taxes they replaced.\69\ The new service provider will 
        not receive Federal appropriations nor will its debt be 
        considered to be backed by the Federal government. ATC 
        reform also incorporates best practices and lessons 
        learned from countries around the world by requiring 
        the service provider to maintain sufficient capital 
        reserves to mitigate unanticipated downturns in air 
        traffic.
---------------------------------------------------------------------------
    \69\ Canada's Air Traffic Provider Announces Lowered Fees; U.S. 
Should Embrace Same Model, Marc Scribner, Competitive Enterprise 
Institute, https://cei.org/blog/canadas-air-traffic-provider-announces-
lowered-fees-us-should-embrace-same-model, (May 30, 2017).
---------------------------------------------------------------------------
          --Reinstating the United States as the world leader 
        in ATC services. The United States has the most 
        expansive and safest airspace in the world and yet it 
        is still operating a system that is based on antiquated 
        technologies. ATC services in the United States are 
        certainly not the most efficient. While other countries 
        have separated their ATC service provider from their 
        government regulator, the United States has lagged 
        behind. Instead, the United States has kept its ATC 
        service provider within a government bureaucracy that 
        is vulnerable to political instabilities. Private ATC 
        service providers, such as UK NATS in the United 
        Kingdom or NavCanada in Canada, have already deployed 
        technologies that the FAA is still working to develop. 
        While the taxes that are used to fund the FAA's air 
        traffic organization have stayed the same over the 
        years, NavCanada has lowered its user fees on the 
        traveling public four times. Still, there are 
        significant differences between the FAA and other ATC 
        service providers. Other ATC service providers have 
        deployed new technologies, increased the efficiency and 
        safety of their systems, and reduced the cost to the 
        traveling public.\70\ The FAA, on the other hand, has 
        had a series of modernization programs over the past 
        three decades that have failed to deliver promised 
        efficiencies while its budget has increased by 95% in 
        roughly two decades.\71\
---------------------------------------------------------------------------
    \70\ Id.
    \71\Office of the Inspector General, U.S. Department of 
Transportation, FAA Reforms Have Not Achieved Expected Cost, Efficiency 
and Modernization Outcomes, AV-2016-15 (2016).
---------------------------------------------------------------------------
          --Removing ATC modernization from onerous and 
        bureaucratic government procurement processes and 
        dysfunctional budgetary cycles. Since 2003, the FAA has 
        been undergoing its modernization initiative known as 
        ``NextGen''. At its inception, the modernization 
        initiative was marketed as a way to fundamentally 
        transform how air traffic would be managed. Both the 
        National Research Council and the DOT IG have pointed 
        out that instead of fundamentally changing how air 
        traffic is managed, as initially promised, the FAA's 
        NextGen effort has shifted to replacing and updating 
        decades-old equipment and systems.\72\ The GAO has 
        documented instances where budget uncertainty has 
        affected FAA's ability to perform its mission.\73\ 
        Additionally, there are questions regarding how the FAA 
        manages NextGen programs. For instance, the DOT IG has 
        expressed concerns with the FAA's practice of dividing 
        its programs into multiple segments and funding each 
        segment separately.\74\ The DOT IG points out that 
        while this may minimize risk, it ``. . . masks how much 
        a program will ultimately cost. . .'' and ``. . . makes 
        it difficult to track what capabilities or benefits 
        will be delivered, total cost of the program, and when 
        the program will be complete.''\75\
---------------------------------------------------------------------------
    \72\ A Review of the Next Generation Air Transportation System: 
Implications and Importance of System Architecture, p. 3, National 
Research Council, The National Academies Press (2015); and Total Costs, 
Schedules, and Benefits of FAA's NextGen Transformational Programs 
Remain Uncertain, Department of Transportation Office of the Inspector 
General, p. 17, AV-2017-009 (November 10, 2016).
    \73\ Government Accountability Office, Aviation Finance: 
Observations on the Effects of Budget Uncertainty on FAA, GAO-16-198R 
p.3 (November 19, 2015).
    \74\ Total Costs, Schedules, and Benefits of FAA's NextGen 
Transformational Programs Remain Uncertain, Department of 
Transportation Office of the Inspector General, pp.4-5, AV-2017-009 
(November 10, 2016); see also, FAA Reforms Have Not Achieved Expected 
Cost, Efficiency, and Modernization Outcomes, Department of 
Transportation Office of the Inspector General, AV-2016-015, p. 12 
(January 15, 2016).
    \75\ Id.
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          ATC reform will help expedite long-term ATC system 
        modernization by freeing the new service provider from 
        government dysfunction, political interference, and the 
        growing unreliability of the annual appropriations 
        process. The new service provider will be able to avoid 
        the risks that accompany politically-driven Federal 
        budget and authorization processes, including resource 
        constraints, continuing resolutions, authorization 
        extensions, sequestration, and government shutdowns. 
        Free of the bureaucratic red tape of the FAA's 
        procurement processes, the new service provider will be 
        able to access the financial markets and leverage 
        private funding for multi-year capital projects. This 
        in turn will allow funding to transform ATC services 
        and still perform continuous technology refreshments to 
        keep the technology up-to-date and competitive with 
        that of our global peers.
          --Offering real reform rather than targeted reforms 
        that have already been tried and have failed: Since 
        1995, Congress has passed procurement, personnel, and 
        structural reforms granting the FAA unique authorities 
        to allow it to run more like a business. The FAA has 
        fundamentally failed to take advantage of these reforms 
        and its performance has simply not improved. The DOT IG 
        determined that the agency's total budget, operations 
        budget, and compensation costs have nearly doubled, 
        while productivity at its network of air traffic 
        facilities has decreased substantially.\76\ The DOT IG 
        also found that FAA has not accelerated delivery of new 
        technologies and has not reduced costs or schedule as 
        anticipated with its transition to the acquisition 
        management system. Giving the FAA greater budgetary and 
        procurement flexibilities would require Congress to 
        cede greater oversight and management of NextGen 
        programs to the very Agency that has failed to deliver 
        on NextGen promises and benefits in the first place.
---------------------------------------------------------------------------
    \76\Statement of Calvin Scovel III, House Committee on 
Transportation and Infrastructure, ``The Need to Reform FAA and Air 
Traffic Control to Build a 21st Century Aviation System for America'', 
May 17, 2017, available at: https://www.oig.dot.gov/sites/default/
files/DOT%20IG%20Scovel%20Statement%20for%20May%2017%20FAA%20hearing%5E5
-17-17.pdf
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          --Ensuring continuity of ATC services to GA. H.R. 
        2997 ensures the new service provider's entire mission 
        will be to provide the safest, most efficient, and 
        modern ATC services possible to all system users. GA is 
        a vital segment of our aviation community, which is why 
        the bill includes two GA seats on the Board of 
        Directors of the new corporation to ensure parity in 
        corporate governance. The new ATC service provider will 
        be legally prohibited from charging user fees to any 
        segment of GA. Instead, GA will support the aviation 
        system as it always has: through fuel taxes. The new 
        service provider will be prohibited from unilaterally 
        restricting airspace or airport access in any way. GA 
        operators will be guided through the National airspace 
        operating under the same rules that apply today--with 
        safety as the first priority. Any changes to ATC 
        procedures must be in accordance with the law and 
        approved by the FAA before they can be implemented. 
        H.R. 2997 requires that if the new service provider 
        proposes to alter the airspace in a way that might 
        restrict access, it would be subject to strict 
        governmental review and approval.
          --Ensuring national defense and continuity of ATC 
        services to public aircraft, including DoD aircraft. 
        Under the 21st Century AIRR Act, sole responsibility 
        for national defense, national intelligence, and the 
        national airspace remains with the Federal government. 
        The new entity will provide a service, nothing more. 
        The Corporation will support all United States 
        government flight activities currently supported by the 
        FAA. Every day, in the U.S. and overseas DOD and other 
        Government aircraft operate alongside civilian aircraft 
        in the same airspace operated by the same air traffic 
        controllers. Under H.R. 2997, none of this would change 
        unless approved by the FAA with the input of DOD and 
        other Federal government stakeholders. The DOD will 
        continue to provide ATC services within U.S. airspace 
        same as it does today. The Corporation, DOT, and other 
        Federal agencies supported by FAA's current operation 
        of ATC services, including DOD, will reach agreements 
        to ensure cooperation, facilitate the safe provision of 
        ATC services, and address coordination and 
        communication of day-to-day operations after the date 
        of transfer. The emergency powers of the Armed Forces 
        are preserved, as is the President's authority to 
        temporarily transfer ATC services to the Secretary of 
        Defense in times of war. The DOD will have a seat on 
        the Advisory Board of the Corporation. Lastly, DOD and 
        other government agencies are exempt from paying users 
        fees or charges for ATC services.

      STRUCTURE AND AUTHORITY OF THE PRIVATE ATC SERVICE PROVIDER

    In separating and transferring the provision of ATC 
services from the federal government, the bill respects the 
bounds of the Constitution by structuring the new ATC service 
provider as an independent, private entity and clearly 
delineating the commercial activities of the new service 
provider from the governmental functions that remain with the 
FAA and DOT. From a historical perspective, ATC began as a not-
for-profit business in the 1920s that was financed through 
private means. In the 1930s, the ATC service provider was taken 
over by the federal government. Since that time, the federal 
government has operated ATC services and simultaneously 
regulated its own operation of those services.
    H.R. 2997 divests the ATC service business from the 
government and returns it to the private sector, as a not-for-
profit private corporation, called the American Air Navigation 
Services Corporation.\77\ The Corporation is exclusively 
authorized to operate ATC services within United States 
airspace and international airspace delegated to the United 
States.\78\ The airspace itself remains a federally regulated, 
sovereign domain of the United States just as it is today. The 
bill essentially licenses the Corporation to provide such 
services subject to federal economic and safety regulation. 
Among other things, the Corporation is prohibited from 
discriminating in the provision of its services and may not 
deny a user its services without the approval of the Secretary, 
much akin to common carriers in the transportation sector.\79\
---------------------------------------------------------------------------
    \77\See H.R. 2997 section 211 (adding 49 U.S.C. 90301).
    \78\See H.R. 2997 section 211 (adding 49 U.S.C. 90302).
    \79\See, e.g., 49. U.S.C. 11101 (establishing the common carrier 
requirement for rail carriers that they provide service upon request); 
49 U.S.C. 14101 (establishing the common carrier requirement for water 
carriers that they provide service upon request); 49 U.S.C. 15701 
(establishing the common carrier requirement for certain pipeline 
carriers that they provide service upon request).
---------------------------------------------------------------------------
    From a Constitutional perspective, the bill ensures the 
Corporation will exist as a private commercial service provider 
subject to arms-length federal regulation and oversight in line 
with other sectors of aviation and aerospace industries. This 
structure is achieved by the precise construction of the 
Corporation and its authorized activities. This is evident in 
the Corporation's structure, ownership, oversight by the 
government, goals, management, and funding, all of which were 
crafted to ensure its private status.\80\
---------------------------------------------------------------------------
    \80\See Dept. of Transp. v. Ass'n of Am. R.R., 135 S. Ct. 1225, 
1231-32 (2015) (Dept. of Transp.) (setting forth the factors the Court 
considered to determine whether a statutorily created entity was 
governmental or private in nature).
---------------------------------------------------------------------------
    The Corporation is established as an independent not-for-
profit business that will be incorporated in a State of its 
choosing.\81\ It is not a department, agency, or 
instrumentality of the federal government, nor is it owned by 
the government.\82\ It would perform no governmental functions 
whatsoever. As such, the Corporation is governed by a Board of 
Directors made up of 13 disinterested, independent directors, 
none of which are appointed by the President and confirmed by 
the Senate.\83\ Of the 13 Board Members, nine are nominated by 
panels of stakeholders, two are selected by the Secretary of 
Transportation, and two selected at-large by the other Board 
members. All directors hold a fiduciary duty solely and 
exclusively to the Corporation, and are subject to removal from 
the Board for violating that duty. This structure will ensure 
the Board members, regardless of how or by whom they are 
selected, act in the interest of the Corporation. To further 
ensure its independence, the Corporation is also prohibited 
from issuing stock, so it will be neither owned nor controlled 
by the government or any other private entity.\84\ The 
Corporation therefore will not be governed or owned by any of 
the stakeholders, nor the government, but will be independent 
and privately managed as a not-for-profit corporation.\85\
---------------------------------------------------------------------------
    \81\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90304) 
(establishing the Corporation as a not-for-profit corporation) with 
Ass'n of Am. R.R. v. Dept. of Transp., 821 F.3d 19, 27 (D.C. Cir. 2016) 
(Ass'n of Am. R.R.) (noting that Amtrak was ``operated `as a for-profit 
corporation' charged with ``undertak[ing] initiatives . . . designed to 
maximize its revenues.''' when determining whether ``an economically 
self-interested entity [was] exercis[ing] regulatory authority over its 
rivals'' in violation of the Constitution).
    \82\See H.R. 2997 section 211 (adding 49 U.S.C. 90304). Further, as 
a private entity, the Corporation is prohibited from negotiating on 
behalf of the government before any international organization. See 
H.R. 2997 section 211 (adding 49 U.S.C. 90503).
    \83\See H.R. 2997 section 211 (adding 49 U.S.C. 90306). In Dept. of 
Transp., the Supreme Court, in finding Amtrak to be governmental in 
nature, looked at its Board composition, citing that eight of the nine 
members were appointed by the President and confirmed by the Senate. 
Dept. of Transp., 135 S. Ct. at 1231.
    \84\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90312 
(prohibiting the Corporation from issuing equity shares)), with Dept. 
of Transp., 135 S. Ct. at 1231 (explaining all preferred stock of 
Amtrak and a majority of its common stock was owned by the government).
    \85\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90304), with 
Dept. of Transp. 135 S. Ct. at 1231-32 (focusing on the ownership of 
Amtrak by the government, Amtrak's structure, and the government's role 
in appointing 8 of its 9 Directors in determining Amtrak was 
governmental).
---------------------------------------------------------------------------
    The Corporation is also free from the government's 
management of its day-to-day activities, and is free to operate 
and manage ATC services within the United States' airspace 
subject to federal regulation.\86\ In that regard, the 
Corporation will be no different than any other regulated 
company in the aviation and aerospace industry. For example the 
Secretary will prescribe performance-based regulations, similar 
to those applicable to other transportation companies, to 
govern safety and airspace management procedures.\87\ Further, 
the Corporation is required to report to the Secretary and 
Congress on safety performance and its financial 
conditions,\88\ however, such federal reporting requirements 
are commonplace among regulated industries.\89\ Finally, the 
Corporation will have no financial ties to the government, its 
debt will not be backed by the government and it will be 
precluded from receiving federal funding from the Airport and 
Airway Trust Fund, which is the primary source of funding for 
the FAA's current operation of ATC services and its safety 
oversight programs.\90\ Instead, like other private service 
providers, the Corporation will raise revenue through charging 
fees for its services.\91\ It will also be free to issue bonds, 
repaid by its fees for services.\92\ This structure will 
provide the Corporation with the commercial freedom necessary 
to reliably operate and maintain a technology business 
untethered from the politically driven, and uncertain, 
government budgetary processes.
---------------------------------------------------------------------------
    \86\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90302), with 
Dept. of Transp. 135 S. Ct. at 1232 (in determining Amtrak to be 
governmental, the Court focused on the significant government 
involvement in Amtrak's operations, including requiring certain routes, 
applying the Freedom of Information Act to Amtrak, requiring certain 
considerations when making improvements to the Northeast Corridor, and 
applying Buy American requirements to Amtrak purchases of $1 million or 
more).
    \87\See, generally, 49 U.S.C. Chapter 447 (establishing the federal 
government's regulation of aviation safety); 49 U.S.C. Subtitle VII, 
Part A, Subpart ii (establishing the federal government's economic 
regulation of air transportation); 49 U.S.C. Subtitle V, Part A 
(establishing the federal role in the safety regulation of rail 
carriers); 49 U.S.C. Chapter 601 (establishing the federal government's 
authority to regulate the safety of pipeline transportation and 
pipeline facilities); 49 U.S.C. Chapter 51 (establishing the federal 
government's authority to regulate the safe transportation of hazardous 
materials).
    \88\See H.R. 2997 section 211 (adding 49 U.S.C. 90501 (safety 
regulation of the new Corporation); 90505 (requiring safety violations 
be reported to the Secretary); 91502-91505 (requiring certain plans be 
submitted to the Secretary)).
    \89\See 49 U.S.C. 41708 (authorizing the Secretary of 
Transportation to require certain reports from air carriers); 49 U.S.C. 
11145 (requiring annual reports of rail carriers, lessors, and 
associations to be filed with the Surface Transportation Board); 49 
U.S.C. 11162 (requiring each rail carrier to have a cost accounting 
system that complies with Board rules); 49 U.S.C. 11163 (establishing 
uniform expense and revenue accounting and reporting for rail 
carriers).
    \90\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90304 
(prohibiting the government for being liable for the actions of the 
Corporation, prohibiting the government from being liable for the debt 
of the Corporation)) and section 244 (prohibiting the Corporation from 
receiving federal funds from the Airport and Airway Trust Fund), with 
Dept. of Transp., 135 S. Ct. at 1232 (explaining Amtrak is ``dependent 
on federal financial support'' receiving over $41 billion in federal 
subsidies over its then-43 year history, with ``recent years [] 
subsidies exceed[ing] $1 billion annually'').
    \91\See H.R. 2997 section 211 (adding 49 U.S.C. 90313).
    \92\See H.R. 2997 section 211 (adding 49 U.S.C. 90308).
---------------------------------------------------------------------------
    While created by the government, the Corporation would 
neither be controlled by the government, nor operated for the 
government's benefit.\93\ The Corporation is established as an 
``autonomous private enterprise''.\94\
---------------------------------------------------------------------------
    \93\Dept. of Transp., 135 S. Ct. at 1232 (``Amtrak was created by 
the Government, is controlled by the Government, and operates for the 
Government's benefit.'')
    \94\Id. (stating ``Amtrak is not an autonomous private 
enterprise'').
---------------------------------------------------------------------------
    As a private entity, the H.R. 2997 ensures a clear 
delineation of the Corporation's activities vis-a-vis the 
federal government. Currently, the government is acting as both 
the technology service-provider and the safety regulator--
regulating itself. The bill carefully separates the ATC 
business operations of the FAA, which are fundamentally 
commercial in nature, from the government regulator. Thus, all 
``significant'' or regulatory authority of the federal 
government remains solely with the DOT and FAA, while only 
those activities related to the provision of ATC service are 
removed from the federal government.
    The Corporation is authorized to manage and operate air 
traffic services within the federally regulated, sovereign 
domain of United States airspace and international airspace 
assigned to the United States.\95\ The federal government would 
continue in its traditional, longstanding role of aviation 
safety regulator. It would establish and approve performance-
based regulations and minimum safety standards for the 
provision of air traffic services, operation of air navigation 
facilities, and the enforcement of safety requirements.\96\ To 
the extent ATC service is currently legally necessary, that is 
because the obligation arises from congressionally authorized 
FAA regulations; it would not and cannot arise from any 
authority or power of the Corporation.\97\ That constitutional 
reality is acknowledged and honored in this bill. Under HR 
2997, while the Corporation, like any other private entity or 
individual, may propose changes to airspace management or 
related regulations, it cannot regulate when and where ATC 
service must be used.\98\ Indeed, there are certain flight 
operations for which the Secretary has determined no ATC 
service is required at all. But, like other common-carriers 
granted license by the government to operate, the Corporation 
must provide ATC services and may not deny them without 
governmental approval or authority to do so.\99\
---------------------------------------------------------------------------
    \95\See H.R. 2997 section 211 (adding 49 U.S.C. 90302).
    \96\See H.R. 2997 section 211 (adding 49 U.S.C. 90501 (continuing 
the Secretary's authority to establish airspace safety management and 
procedures); 90505 (clarifying that enforcement authority of 
noncompliance with air traffic procedures remains with the FAA)).
    \97\See 14 C.F.R. 91.130.
    \98\See H.R. 2997 section 211 (adding 49 U.S.C. 90501 (requiring 
the Secretary to prescribe and change the performance-based regulations 
and requiring the Corporation to following the safety regulations)).
    \99\See H.R. 2997 section 211 (adding 49 U.S.C. 90501-90502).
---------------------------------------------------------------------------
    Also, like other private entities, the Corporation is 
allowed to establish fees and charges, including late charges, 
for its services.\100\ However, this commercial discretion to 
set a price for service is subject to economic regulatory 
processes and approvals. Under H.R. 2997, the Board has a duty 
to establish its own fees and charges, including late fees, 
penalties, and interest, for the services the Corporation 
provides.\101\ Regardless of whether there are changes to 
increase or decrease fees and charges, the Board must approve 
all fees and charges taking into account certain standards, 
such as complying with international standards and obligations, 
complying with statutory fee principles, non-discrimination, 
not reducing airspace access, and not reducing safety.\102\
---------------------------------------------------------------------------
    \100\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90308 and 
90313 (requiring the Corporation to establish fees and charges for its 
services)), with 49 U.S.C. 10702 (requiring a rail carrier to establish 
rates for services).
    \101\See H.R. 2997 section 211 (adding 49 U.S.C. 90308 and 90313). 
It is important to note that the Corporation may only set fees and 
charges for its own services, not fees and charges for the services or 
products of other private entities. See Sunshine Anthracite Coal Co. v. 
Adkins, 310 U.S. 381, 398-99 (1940) (analyzing a private entity that 
proposed coal prices for the industry); Carter v. Carter Coal, 298 U.S. 
238, 310-311 (evaluating a delegation to a majority of coal producers 
of the power to fix the hours and wages for all producers in the entire 
coal industry); Pittston Co. v. United States, 368 F.3d 385, 395-96 
(4th Cir. 2004) (analyzing a private entity that was created to collect 
industry-wide assessments and premiums for benefits, and to manage the 
amount of benefits and who received the benefits for the industry).
    \102\See H.R. 2997 section 211 (adding 49 U.S.C. 90313). Section 
90308 in conjunction with 90313(d) applies principles and standards for 
the Board's establishment of fees and charges. Those standards include 
the following:
      ``(1) The amount or type of charges and fees paid by an air 
traffic services user may not--
        ``(A) be determinant of the air traffic services provided to 
the user; or
        ``(B) adversely impact the ability of the user to use or access 
any part of the national airspace system.
      ``(2) Charges and fees shall be consistent with the document 
titled 'ICAO's Policies on Charges for Airports and Air Navigation 
Services', Ninth Edition, 2012.
      ``(3) Charges and fees may not be discriminatory.
      ``(4) Charges and fees shall be consistent with United States 
international obligations.
      ``(5) Certain categories of air traffic services users may be 
charged on a flat fee basis so long as the charge or fee is otherwise 
consistent with this subsection.
      ``(6) Charges and fees may not be imposed for air traffic 
services provided with respect to operations of aircraft that qualify 
as public aircraft under sections 40102(a) and 40125.
      ``(7) Charges and fees may not be imposed for air traffic 
services provided with respect to aircraft operations conducted 
pursuant to part 91, 133, 135, 136, or 137 of title 14, Code of Federal 
Regulations.
      ``(8) Charges and fees may not be structured such that air 
traffic services users have incentives to operate in ways that diminish 
safety to avoid the charges and fees.
      ``(9) Charges and fees, based on reasonable and financially sound 
projections, may not generate revenues exceeding the Corporation's 
current and anticipated financial requirements in relation to the 
provision of air traffic services.''
---------------------------------------------------------------------------
Even where private entities are granted certain authority in statute, 
such power is permissible if the statute ``gives detailed guidance'' on 
how to carry-out those responsibilities. Pittston, 368 F.3d at 397. See 
also A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495, 
539-42 (1935) (holding that the delegation of authority to draw up 
binding codes of competition violated the nondelegation doctrine 
because the statute lacked adequate standards to develop the codes).
    For the initial schedule of fees and charges, which would 
include any proposed late fees, penalties, and interest, the 
Corporation must propose the schedule 180 days before the date 
of transfer to the Secretary.\103\ Then, the Secretary must 
review the schedule to ensure it complies with the standards of 
review and, if so, approve it, before the schedule takes 
effect.\104\ For any subsequent increase in fees and charges, 
the Secretary must also review and approve the schedule to 
determine if it complies with the standards outlined in 
statute. Furthermore, any fee or charge assessed by the 
Corporation may be challenged by the ATC service user through a 
complaint process established by the Secretary.\105\ The 
Secretary retains the authority to issue a final decision, 
however, it must be within 90 days of receiving the 
complaint.\106\ While many common carriers are free to 
establish their own fees for service, many still are subject to 
economic regulatory challenge by their customers, similar to 
the Corporation under the bill.
---------------------------------------------------------------------------
    \103\See H.R. 2997 section 211 (adding 49 U.S.C. 90313).
    \104\See Id.
    \105\See H.R. 2997 section 211 (adding 49 U.S.C. 90502).
    \106\See H.R. 2997 section 211 (adding 49 U.S.C. 90502 (requiring 
the Secretary to issue the final decision in a fee complaint)).
---------------------------------------------------------------------------
    The Corporation, like other private businesses, may seek 
redress in the courts for non-payment of fees and charges.\107\ 
This mechanism to collect delinquent payments is an exercise of 
a limited private right of action necessary to protect the 
economic interests of the Corporation; it is not the 
enforcement of a law of general applicability on behalf of the 
public or the United States.\108\ This distinction is 
important. The Corporation requires the same rights as other 
private commercial service providers, especially a common 
carrier, in the private sector. And, like any private person, 
the Corporation must be able to protect its own interests 
through the civil justice system. Such an exercise or 
invocation of a statutory, limited private right of action to 
protect an economic interest is not an exercise of sovereign 
governmental powers.
---------------------------------------------------------------------------
    \107\Compare H.R. 2997 section 211 (adding 49 U.S.C. 90313 
(allowing the Corporation to sue to enforce failure to pay fees)), with 
49 U.S.C. 10743 (requiring shippers in the railroad industry to pay the 
rail carrier's rates, and allowing a rail carrier to bring an action to 
enforce payment of such rates) and 49 U.S.C. 11704 (granting a person 
injured by a rail carrier's failure to obey an order of the Surface 
Transportation Board the right to enforce orders of the Board in United 
States District Courts).
    \108\See Pittston, 368 F.3d at 396-397 (noting the private entity 
had the ``power to sue for monies owed to itself, which is not a 
governmental power, but a private one'' and holding that such powers 
``clearly do not violate the nondelegation doctrine'').
---------------------------------------------------------------------------
    Regardless of whether a user pays fees owed or not, the 
Corporation cannot deny service to any user for failure to pay 
fees or charges without the approval of the Secretary.\109\ 
Similar to other common carriers, the Corporation cannot deny 
any user of ATC services airspace access without governmental 
approval.\110\
---------------------------------------------------------------------------
    \109\See H.R. 2997 section 211 (adding 49 U.S.C. 90502).
    \110\See H.R. 2997 section 211 (adding 49 U.S.C. 90501-90502).
---------------------------------------------------------------------------
    The structures and mechanisms set forth in H.R. 2997 and 
outlined above recognize both the unique nature of the air 
traffic services the private Corporation will provide and the 
federal government's exclusive regulatory control over 
aviation, including ATC, and the sovereign domain of the 
National airspace. H.R. 2997 ensures a clear separation between 
the Corporation, a private entity, and the government with it's 
ongoing and exclusive role as a regulator, and as such respects 
the bounds of the Constitution.

                        Hearings and Roundtables

    The Committee on Transportation and Infrastructure and its 
Subcommittee on Aviation, held the following hearings on 
subjects related to matters addressed in H.R. 2997, as amended, 
during the 115th Congress:
          On June 8, 2017, the Committee on Transportation and 
        Infrastructure held a hearing entitled Building a 21st 
        Century Infrastructure for America: Federal Aviation 
        Administration Authorization. The purpose of this 
        hearing was to hear testimony from the Secretary of 
        Transportation Elaine Chao on issues related to the 
        FAA, the programs it administers, and FAA authorization 
        and reform.
          On May 17, 2017, the Committee on Transportation and 
        Infrastructure held a hearing entitled The Need to 
        Reform FAA and Air Traffic Control to Build a 21st 
        Century Aviation System for America. The purpose of 
        this hearing was to discuss the need for fundamental 
        reform of the ATC system and to receive testimony from 
        the DOT IG, the president of the National Air Traffic 
        Controllers Association, a former Clinton and Obama 
        administration official, the Director of Transportation 
        Policy of the Reason Foundation, and the president of 
        Hartzell Propeller.
          On May 2, 2017, the Committee on Transportation and 
        Infrastructure held a hearing entitled Oversight of 
        U.S. Airline Customer Service. The purpose of this 
        hearing was to hear testimony from major airlines and a 
        consumer group concerning the state of customer 
        services issues within the U.S. aviation system. The 
        Committee received testimony from representatives of 
        United Airlines, Southwest Airlines, American Airlines, 
        Alaska Airlines, and an aviation consultant from 
        Consumers Union.
          On April 4, 2017, the Subcommittee on Aviation held a 
        hearing entitled Building a 21st Century Infrastructure 
        for America: Enabling Innovation in the National 
        Airspace. The purpose of this hearing was to hear about 
        new aviation and aerospace technologies, users, and 
        business models, and to learn about the role of 
        innovation in building a 21st century aviation 
        transportation system. This hearing addressed any 
        potential challenges operators may face when 
        integrating new technology into the National airspace. 
        The Subcommittee received testimony from 
        representatives of the FAA, Amazon Prime Air, FlyGLO, 
        AirMap, Virgin Galactic, and VDOS Global.
          On March 8, 2017, the Subcommittee on Aviation held a 
        hearing entitled Building a 21st Century Infrastructure 
        for America: Air Transportation in the United States in 
        the 21st Century. The purpose of this hearing was to 
        hear about the current state of the U.S. air 
        transportation industry from a variety of perspectives. 
        The Subcommittee received testimony from 
        representatives of Alaska Air Group, Inc., SkyWest, 
        Inc., Air Transport Services Group, Association of 
        Flight Attendants-CWA, and Travelers United.
          On March 1, 2017, the Subcommittee on Aviation held a 
        hearing entitled Building a 21st Century Infrastructure 
        for America: State of American Airports. The purpose of 
        this hearing was to hear about the current state of 
        commercial service and general aviation airports across 
        the Nation and discuss the challenges and opportunities 
        associated with building a globally competitive 21st 
        century aviation infrastructure. The Subcommittee 
        received testimony from representatives of diversely 
        sized airports, including Dallas/Fort Worth 
        International Airport, Seattle-Tacoma International 
        Airport, Pittsburgh International Airport, Asheville 
        Regional Airport, and the Ventura County Department of 
        Airports.
          On February 15, 2017, the Subcommittee on Aviation 
        held a hearing entitled Building a 21st Century 
        Infrastructure for America: State of American Aviation 
        Manufacturing. The purpose of this hearing was to hear 
        about the current state of civil aviation 
        manufacturing, including the economic, regulatory, and 
        general health of American civil aviation 
        manufacturing. The Subcommittee also heard about the 
        challenges being faced in the industry. The 
        Subcommittee received testimony from representatives of 
        the FAA, Boeing Company, Pratt and Whitney, and Textron 
        Aviation.
    On February 1, 2017, the Committee on Transportation and 
Infrastructure held a hearing entitled Building a 21st Century 
Infrastructure for America. The purpose of this hearing was to 
hear about challenges facing our Nation's current 
transportation infrastructure and a vision for a modern 21st 
century transportation infrastructure. The Committee received 
testimony from representatives of FedEx Corporation, Cargill, 
BMW North America, Vermeer Corporation, and the AFL-CIO.
          The Committee on Transportation and Infrastructure 
        and its Subcommittee on Aviation, held the following 
        hearings and roundtables on subjects related to matters 
        addressed in H.R. 2997, as amended, during the 114th 
        Congress:
          On February 10, 2016, the Committee on Transportation 
        and Infrastructure held a hearing entitled Review of 
        ATC Reform Proposals. The purpose of this hearing was 
        to examine proposals to reform the ATC operations of 
        the FAA.
          On June 22, 2016, the Subcommittee on Aviation held a 
        hearing entitled FAA Oversight of Commercial Space 
        Transportation. The purpose of this hearing was to 
        explore issues related to the FAA's oversight of the 
        commercial space transportation industry.
          On June 15, 2016, the Subcommittee on Aviation held a 
        hearing entitled A Review of the Federal Aviation 
        Administration's Air Traffic Controller Hiring, 
        Staffing and Training Plans. The purpose of this 
        hearing was to review the FAA's air traffic controller 
        hiring, staffing, and training plans.
          On December 8, 2015, the Subcommittee on Aviation 
        held a roundtable entitled Review of Federal Aviation 
        Administration Air Traffic Controller Staffing. The 
        purpose of this roundtable was to examine concerns with 
        staffing levels at major ATC facilities and discuss if 
        the FAA's current training and hiring processes are 
        adequate.
          On May 21, 2015, the Subcommittee on Aviation held a 
        roundtable entitled FAA Reauthorization: Airport 
        Financing and Development. The purpose of this 
        roundtable was to discuss issues related to airport 
        financing and development.
          On April 30, 2015, the Subcommittee on Aviation held 
        a roundtable entitled Ensuring the Safety of Our 
        Nation's Aviation System. The purpose of this 
        roundtable was to discuss aviation safety issues and 
        policies as the Committee on Transportation and 
        Infrastructure works toward the reauthorization of the 
        FAA.
          On March 24, 2015, the Subcommittee on Aviation held 
        a roundtable entitled Options for FAA Air Traffic 
        Control Reform. The purpose of this hearing was to 
        discuss options for reforming ATC operations at the 
        FAA.
          On March 3, 2015, the Subcommittee on Aviation held a 
        roundtable entitled Federal Aviation Administration 
        Reauthorization: Enabling a 21st Century Aviation. The 
        purpose of the hearing was to receive testimony on 
        issues related to the FAA and federal aviation programs 
        with a view toward reauthorizing the programs before 
        they expire on September 30, 2015.
          On February 25, 2015, the Subcommittee on Aviation 
        held a roundtable entitled Issues Regarding Modernizing 
        and Operating the Nation's Airspace System held on 
        February 25, 2015. The purpose of this roundtable was 
        to discuss issues related to the FAA's modernization 
        and operation of the Nation's airspace system.
          On January 21, 2015, the Committee on Transportation 
        and Infrastructure held a hearing entitled FAA 
        Reauthorization: Reforming and Streamlining the FAA's 
        Regulatory Certification Processes. The purpose of this 
        hearing was to prepare for the FAA reauthorization, to 
        hear witnesses' testimony on FAA's certification 
        processes, to examine progress the FAA has made to 
        streamline the processes since the last 
        reauthorization, and to determine areas in need of 
        additional reform.
    The Committee on Transportation and Infrastructure and its 
Subcommittee on Aviation, held the following hearings on 
subjects related to matters addressed in H.R. 2997, as amended, 
during the 113th Congress:
          On July 23, 2014, the Subcommittee on Aviation held a 
        hearing entitled Domestic Aviation Manufacturing: 
        Challenges and Opportunities. The purpose of this 
        hearing was to review the state of American aviation 
        manufacturing. The Subcommittee heard about the 
        economic health of American aviation manufacturing and 
        challenges the industry is facing.
          On June 18, 2014, the Subcommittee on Aviation held a 
        hearing entitled Airport Finance and Development. The 
        hearing explored the current and future needs of 
        aviation infrastructure and how we can fund these 
        growing needs. Airports and airlines are at odds on 
        increasing or lifting the passenger facility charge 
        (PFC), so this hearing provided an opportunity to hear 
        various stakeholders' perspectives as the Committee 
        prepared for the next reauthorization bill.
          On February 5, 2014, the Subcommittee on Aviation 
        held a hearing entitled The FAA Modernization and 
        Reform Act of 2012: Two Years Later. After nearly two 
        years since the FAA Modernization and Reform Act of 
        2012 (FMRA) was signed into Public Law, the 
        Subcommittee heard from witnesses regarding the 
        progress the FAA had made in implementing provisions in 
        the FRMA over the two year period.
          On December 12, 2013, the Subcommittee on Aviation 
        held a hearing entitled The State of American Aviation. 
        The purpose of this hearing was to hear from 
        government, industry, and other stakeholders on the 
        state of American aviation and learn about any issues 
        or policy areas they believe need to be addressed in 
        the next FAA reauthorization.
          On October 30, 2013, the Subcommittee on Aviation 
        held a hearing entitled Review of the FAA's 
        Certification Process: Ensuring an Efficient, 
        Effective, and Safe Process. The purpose of the hearing 
        was to review the FAA's progress in implementing 
        provisions in the Reform Act, which required the agency 
        to develop plans to streamline their certification 
        process and address regional inconsistencies.
          On July 17, 2013, the Subcommittee on Aviation held a 
        hearing entitled Causes of Delays to the FAA's NextGen 
        Program. The purpose of the hearing was to address the 
        delays in the FAA's implementation of NextGen as 
        outlined in an audit conducted by the DOT IG.
          On May 16, 2013, the Subcommittee on Aviation held a 
        hearing entitled Review of the FAA's Progress in 
        Implementing the FAA Modernization and Reform Act. The 
        hearing was a continuation of the February 2013 hearing 
        addressing the FAA's progress in implementing the FMRA.
          On February 27, 2013, the Subcommittee on Aviation 
        held a hearing entitled Implementation of the FAA 
        Reauthorization and Reform Act: One Year Later. The 
        purpose of the hearing was to address the progress that 
        the FAA had made in the implementation of the FMRA.

                 Legislative History and Consideration

    On June 22, 2017, House Committee on Transportation and 
Infrastructure Chairman Bill Shuster (R-PA), Subcommittee on 
Aviation Chairman Frank A. LoBiondo (R-NJ), Subcommittee on 
Highways and Transit Chairman Sam Graves (R-MO), Subcommittee 
on Aviation Vice Chairman Paul Mitchell (R-MI), Representative 
Colleen Hanabusa (D-HI), and Representative Kyrsten Sinema (D-
AZ) introduced H.R. 2997, the 21st Century AIRR Act. On June 
27, 2017, the Committee on Transportation and Infrastructure 
met in open session and ordered the bill reported, as amended, 
favorably to the House by a recorded vote of 32 to 25 with a 
quorum present.
    During consideration of the bill, the Committee dispensed 
with amendments as follows:
    The following amendments were approved by voice vote:
          An amendment offered by Representative Barletta 
        designated 015;
          An amendment offered by Representative Davis 
        designated 026;
          An amendment offered by Representative Mitchell 
        designated 014;
          An amendment offered by Representative Comstock 
        designated 018;
          An amendment offered by Representative Garamendi 
        designated 019;
          An amendment offered by Representative Carson 
        designated 013;
          Amendments considered en bloc and consisting of:
                  An amendment by Representative Brownley 
                designated 020;
                  An amendment by Representative Bustos 
                designated 020; Amendments by Representative 
                Huffman designated 055 and 057;
                  An amendment by Representative Johnson of 
                Georgia designated 033;
                  An amendment by Representative Lawrence 
                designated 024;
                  An amendment by Representative Lowenthal 
                designated 019;
                  An amendment by Delegate Norton designated 
                034;
                  An amendment by Representative Payne 
                designated 020;
                  An amendment by Representative Barletta 
                designated 016;
                  An amendment by Representative Comstock 
                designated 017;
                  An amendment by Representative Rodney Davis 
                of Illinois designated 025;
                  An amendment by Representative Lewis 
                designated 009;
                  An amendment by Representative Woodall 
                designated 003;
                  An amendment by Representative Sanford 
                designated 032;
                  An amendment by Representative Larsen 
                designated 023;
                  An amendment by Representative Young 
                designated 070;
                  An amendment by Representative Mast 
                designated 017;
                  An amendment by Representative Rokita 
                designated 023;
                  An amendment by Representative LoBiondo 
                designated 020;
                  An amendment by Representative Bustos 
                designated 021; and An amendment by 
                Representative Brownley designated 019;
          An amendment offered by Representative Perry 
        designated 050;
          An amendment offered by Delegate Norton designated 
        033;
          An amendment offered by Representative Lipinski 
        designated 027;
          Amendments considered en bloc and consisting of:
                  An amendment by Representative Lipinski 
                designated 043;
                  An amendment by Representative Bost 
                designated 001, as modified;
                  An amendment by Representative Rouzer 
                designated as 001;
                  An amendment by Representative Lipinski 
                designated 034;
                  An amendment by Representative Barletta 
                designated 017;
                  An amendment by Representative Garamendi 
                designated 026;
                  An amendment by Representative Cohen 
                designated 045;
                  An amendment by Representative Nolan 
                designated 037, as modified;
                  An amendment by Representative Nolan 
                designated 041, as modified;
                  An amendment by Representative Wilson 
                designated 027, as modified; and An amendment 
                by Representative DeSaulnier designated 023, as 
                modified.
    The following amendment was defeated by voice vote:
          An amendment offered by Representative Cohen 
        designated 043;
    The following amendments were approved by recorded vote:
          An amendment offered by Delegate Norton designated 
        033;
          An amendment offered by Representative Lipinski 
        designated 027;
    The following amendments were defeated by recorded vote:
          An amendment offered by Representative DeFazio 
        designated 045;
          An amendment offered by Delegate Norton designated 
        031;
          An amendment offered by Representative Perry 
        designated 051;
          An amendment offered by Representative Nadler 
        designated 022;
          An amendment offered by Representative Eddie Bernice 
        Johnson of Texas designated 016;
          An amendment offered by Representative Larsen 
        designated 021;
          An amendment offered by Representative Lipinski 
        designated 041;
          An amendment offered by Representative Nolan 
        designated 042;
          An amendment offered by Representative Titus 
        designated 013;
          An amendment offered by Representative Huffman 
        designated 056;
          An amendment offered by Representative DeFazio 
        designated 053;
          An amendment offered by Representative Lipinski 
        designated 039;
          An amendment offered by Representative Lowenthal 
        designated 018;
          An amendment offered by Representative Titus 
        designated 011;
          An amendment offered by Representative DeFazio 
        designated 051; and
          An amendment offered by Representative Titus 
        designated 012.
    The following amendments were offered and withdrawn:
          An amendment offered by Representative Rokita 
        designated 020;
          An amendment offered by Representative Rokita 
        designated 021;
          An amendment offered by Representative Rokita 
        designated 022;
          An amendment offered by Representative Rokita 
        designated 024;
          An amendment offered by Representative Capuano 
        designated 029;
          An amendment offered by Representative Lewis 
        designated 010;
          An amendment offered by Representative Johnson of 
        Georgia designated 034;
          An amendment offered by Representative Lowenthal 
        designated 017;
          An amendment offered by Representative Eddie Bernice 
        Johnson of Texas designated 013;
          An amendment offered by Representative Johnson of 
        Georgia designated 035;
          An amendment offered by Representative Johnson of 
        Texas designated 015;
          An amendment offered by Representative Cohen 
        designated 042;
          An amendment offered by Representative Garamendi 
        designated 021;
          An amendment offered by Representative Lipinski 
        designated 038;
          An amendment offered by Representative Nolan 
        designated 044;
          An amendment offered by Representative Lipinski 
        designated 042;
          An amendment offered by Representative Lipinski 
        designated 044;
          An amendment offered by Representative Lipinski 
        designated 037;
          An amendment offered by Representative Maloney 
        designated 029;
          An amendment offered by Representative Graves 
        designated 015; and An amendment offered by 
        Representative Sanford 28 designated 028.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against. During Committee consideration of H.R. 2997, 
record votes were taken on the following amendments and final 
passage:
          An amendment offered by Representative DeFazio 
        designated 045;
          An amendment offered by Delegate Norton designated 
        031;
          An amendment offered by Representative Perry 
        designated 051;
          An amendment offered by Representative Nadler 
        designated 022;
          An amendment offered by Representative Eddie Bernice 
        Johnson of Texas designated 016;
          An amendment offered by Representative Larsen 
        designated 021;
          An amendment offered by Representative Lipinski 
        designated 041;
          An amendment offered by Representative Nolan 
        designated 042;
          An amendment offered by Representative Titus 
        designated 013;
          An amendment offered by Representative Huffman 
        designated 056;
          An amendment offered by Representative DeFazio 
        designated 053;
          An amendment offered by Delegate Norton designated 
        033;
          An amendment offered by Representative Lipinski 
        designated 039;
          An amendment offered by Representative Lowenthal 
        designated 018;
          An amendment offered by Representative Titus 
        designated 011;
          An amendment offered by Representative DeFazio 
        designated 051;
          An amendment offered by Representative Titus 
        designated 012;
          An amendment offered by Representative Lipinski 
        designated 027; and Vote ordering H.R. 2997, as 
        amended, reported favorably.
    The Committee disposed of these votes as follows:
    
    
                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives and section 
402 of the Congressional Budget Act of 1974, the Committee has 
received the enclosed cost estimate for H.R. 2997, as amended, 
from the Director of the Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 11, 2017.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2997, the 21st 
Century Aviation Innovation, Reform, and Reauthorization Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                              Keith Hall, Director.
    Enclosure.

H.R. 2997--21st Century Aviation Innovation, Reform, and 
        Reauthorization Act

    Summary: H.R. 2997 would establish a federally chartered, 
not-for-profit corporation (known as the American Air 
Navigation Services (AANS) Corporation) to assume 
responsibility for operating the U.S. air traffic control 
system, a function currently performed by the Federal Aviation 
Administration (FAA). The proposed corporation would be 
governed by a 13-member board of directors composed of 
individuals representing certain aviation stakeholder groups. 
To finance the costs of providing air traffic services, the 
bill would authorize the corporation to charge fees to users of 
such services and to issue debt.
    The Secretary of Transportation would manage and oversee 
the transition of operational control over air traffic services 
to the proposed corporation, which would occur on October 1, 
2020. Until that time, the bill would authorize appropriations 
for the FAA to continue to operate, maintain, and modernize the 
air traffic control system and carry out the agency's other 
traditional responsibilities related to civil aviation. After 
the proposed transition of all air traffic control-related 
personnel and programs to the AANS Corporation, the bill would 
authorize additional appropriations for FAA and the Department 
of Transportation (DOT) to continue to meet traditional 
aviation-related responsibilities, such as performing certain 
regulatory and safety-related activities, making grants to 
airports to support capital projects, and subsidizing air 
service to certain rural communities.
    Although the proposed corporation would be independent and 
autonomous, in CBO's view it would effectively act as an agent 
of the federal government in carrying out a regulatory 
function. Hence, in keeping with guidance specified by the 1967 
President's Commission on Budget Concepts, the proposed 
corporation's cash flows should be recorded in the federal 
budget. More specifically, fees charged by the proposed 
corporation should be recorded as federal revenues, and its 
expenditures should be classified as federal direct spending.
    On that basis, CBO estimates that enacting H.R. 2997 would:
           Increase net direct spending by $90.7 
        billion over the 2018-2027 period;
           Increase net revenues by $70.0 billion over 
        the 2018-2027 period;
           Increase net deficits stemming from revenues 
        and direct spending by about $20.7 billion over the 
        2018-2027 period; and
           Result in discretionary outlays totaling 
        $52.3 billion over the 2018-2027 period, subject to the 
        appropriation of authorized amounts.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending and revenues. CBO 
estimates that enacting H.R. 2997 would increase net direct 
spending and on-budget deficits by more than $5 billion in one 
or more of the four consecutive 10-year periods beginning in 
2028.
    The estimated changes in direct spending and revenues under 
H.R. 2997 reflect CBO's assessment of the budgetary effects of 
enacting H.R. 2997 as a stand-alone measure. Ultimately, 
however, the net budgetary impact of activities related to air 
traffic control under H.R. 2997 would depend on the details of 
additional legislation that lies beyond the scope of this cost 
estimate. H.R. 2997 does not address other important aspects of 
federal activities related to aviation--in particular, 
provisions of current law that govern aviation-related excise 
taxes that cover most of the FAA's costs related to air traffic 
services and other programs. Similarly, although H.R. 2997 
authorizes a marked reduction in future appropriations for the 
FAA that comport with the envisioned transfer of operational 
control over the air traffic control system to the AANS 
Corporation, whether subsequent reductions in future 
discretionary funding for the agency occur would depend on 
appropriations enacted by future Congresses. As a result, the 
ultimate net budgetary impact of corporatizing air traffic 
control under H.R. 2997 could differ considerably from the 
estimates presented in this analysis, but CBO cannot provide an 
analysis of such potential impacts because they would depend on 
the details of future legislation (see the discussion below 
under the heading ``Additional Information'').
    H.R. 2997 would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
on operators of air ambulances. The bill also would preempt 
state authority over air traffic control services. Based on 
information from the FAA, public airport operators, and state 
aviation agencies, CBO estimates that the cost of the mandates 
on public entities would fall below the annual threshold 
established in UMRA for intergovernmental mandates ($78 million 
in 2017, adjusted annually for inflation). The bill would 
impose additional mandates on private entities including users 
of air traffic services, air carriers, manufacturers of 
aircraft, and ticket agents. CBO estimates that the aggregate 
cost of mandates on private entities would well exceed the 
annual threshold established in UMRA for private-sector 
mandates ($156 million in 2017, adjusted annually for 
inflation).
    Estimated Cost to the Federal Government: The estimated 
budgetary effect of H.R. 2997 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in billions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2017   2018   2019   2020   2021   2022   2023   2024   2025   2026   2027  2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              INCREASES IN DIRECT SPENDING
 
Estimated Budget Authority...........................    0.0    0.2    0.3    0.4   13.1   13.6   14.0   14.4   14.9   15.3   15.7      27.6      102.0
Estimated Outlays....................................    0.0    0.0    0.0      *    9.3   11.6   12.7   13.6   14.1   14.5   15.0      20.8       90.7
 
                                                                  INCREASES IN REVENUES
 
Estimated Revenues...................................    0.0    0.0    0.0    0.0    9.0    9.3    9.6   10.0   10.3   10.7   11.1      18.3       70.0
 
                                        NET INCREASE IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
 
Impact on Deficit....................................    0.0    0.0    0.0      *    0.3    2.3    3.1    3.6    3.8    3.8    3.9       2.6       20.7
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level........................    0.0   13.2   13.5   13.8    2.5    2.5    2.6    0.0    0.0    0.0    0.0      45.6       48.2
Estimated Outlays....................................    0.0   10.5   12.4   13.4    5.0    4.0    3.6    1.2    0.9    0.7    0.7      45.2       52.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:Components may not sum to totals due to rounding. * = less than $50 million.

Background

    The FAA is responsible for most federal activities related 
to civil aviation under current law. The agency receives 
funding for most of its programs and activities--operations; 
maintaining air navigation facilities and equipment; and 
research, engineering, and development--in annual appropriation 
acts. The bulk of those funds are used to operate and maintain 
the air traffic control system. In addition, the FAA receives 
funding for the Airport Improvement Program (AIP), which makes 
grants to public-use airports for projects to enhance safety 
and increase their capacity; that funding is provided in 
authorization acts as contract authority (a mandatory form of 
budget authority). Finally, DOT receives annual appropriations 
to make payments to air carriers to subsidize their costs to 
provide service to certain small communities.
    Historically, the funds for aviation programs come from the 
general fund of the Treasury and the Airport and Airway Trust 
Fund. That trust fund is an accounting mechanism in the federal 
budget that records receipts from certain taxes paid by users 
of the air transportation system--primarily excise taxes on 
commercial airline tickets--and spending to cover a portion of 
the FAA's programs and DOT's payments to air carriers. Annual 
spending from the fund is not automatically triggered by the 
collection of tax revenues or transfers of interest earnings 
but is controlled by annual appropriation acts.
    In 2017, CBO estimates, revenues credited to the Airport 
and Airway Trust Fund will total $15.1 billion, slightly less 
than the $15.7 billion in new funding provided from the fund 
for FAA programs and DOT's payments to air carriers. The FAA 
also received $1 billion in appropriations from the general 
fund for 2017, bringing total discretionary funding (including 
appropriations and obligation limitations on AIP contract 
authority) to $16.6 billion. That amount includes:
           $10.7 billion for the full operating and 
        capital costs of providing air traffic control services 
        (including ancillary support services);
           $3.35 billion for AIP grants to airports;
           $2.4 billion for other FAA activities, 
        particularly those related to regulating the safety of 
        civil aviation; and
           $150 million for DOT to make payments to air 
        carriers that provide service to certain rural 
        communities through the Essential Air Service program.
    If discretionary resources for FAA and DOT aviation 
activities (including obligation limitations) were assumed to 
remain at the 2017 level adjusted for inflation, CBO projects 
that discretionary funding would grow to $20.4 billion in 2027. 
CBO also estimates that, if aviation-related excise taxes 
credited to the Airport and Airway Trust Fund are extended, 
they will grow at roughly the same rate as the economy and 
total $21.3 billion in 2027.\1\
---------------------------------------------------------------------------
    \1\Under current law, most aviation-related excise taxes that 
provide funding for federal aviation programs are scheduled to expire 
after September 30, 2017; however, under rules governing CBO's baseline 
projections, revenues from excise taxes that are credited to trust 
funds are assumed to continue in effect beyond their scheduled 
expiration date.
---------------------------------------------------------------------------

Major provisions

    H.R. 2997 would establish the AANS Corporation, a federally 
chartered, not-for-profit corporation to assume responsibility 
for operating the U.S. air traffic control system. A 13-member 
board of directors (including a board-appointed chief executive 
officer) would govern the proposed corporation. The Secretary 
of Transportation would appoint two directors; eight others 
would be nominated by panels of individuals representing 
certain aviation stakeholders.\2\ Those 10 board members would 
select two additional ``at large'' members.
---------------------------------------------------------------------------
    \2\The eight nominating panels established under S. 2997 would 
represent passenger, cargo, and regional air carriers; noncommercial 
owners and recreational operators of general aviation; business 
aviation (including users of general aviation aircraft exclusively to 
further business interests, aviation-related businesses, and aerospace 
manufacturers of aircraft and equipment used in general aviation); air 
traffic controllers; airports; and commercial pilots.
---------------------------------------------------------------------------
    Under H.R. 2997, the corporation would be the only entity 
authorized to provide air traffic services within U.S. airspace 
other than the Department of Defense and certain other entities 
with existing responsibilities. The corporation also would be 
responsible for maintaining and modernizing the infrastructure 
and equipment associated with the air traffic control system. 
To cover the costs of operating and managing that system, the 
bill would authorize the corporation to charge fees to users of 
air traffic control services, require users to pay such fees, 
and specify that the corporation could enforce that requirement 
in U.S. courts. In addition to funding from user fees, the 
corporation would be authorized to issue debt to finance its 
costs. The bill would prohibit the corporation from issuing or 
selling equity shares in the corporation.
    The Secretary of Transportation would manage and oversee 
the transition of operational control over air traffic services 
to the proposed corporation, which would occur on October 1, 
2020. The bill outlines procedures for identifying the federal 
personnel to be transferred to the corporation and specifies 
that certain provisions of laws related to labor-management 
relations that currently apply to the FAA and its labor 
organizations would continue to apply to all employees of the 
new corporation (including individuals hired after the date of 
transfer). Transferred employees would have the option to 
retain their existing federal health and retirement benefits or 
could choose to participate in benefit plans offered by the new 
corporation.
    The bill also would convey to the corporation, for no 
consideration, any real and personal property (including air 
navigation facilities), and related licenses, patents, software 
rights, and other items deemed necessary for providing air 
traffic services. The conveyance would include access to 
systems using the dedicated portion of the electromagnetic 
spectrum used by the FAA to provide air traffic services and 
data from such systems. Under the bill, ownership of real 
property at FAA's technical facilities would revert to the 
federal government if the corporation deemed such property to 
be no longer needed to provide air traffic services and the 
Secretary of Transportation determined that a reversion was 
necessary to protect the national interest. The bill would 
authorize the corporation to sell other real property (except 
for certain property located in noncontiguous states) and use 
the proceeds to make capital investments related to air traffic 
control infrastructure.
    Until fiscal year 2021, when the transfer would occur, the 
FAA would continue to operate, maintain, and modernize the air 
traffic control system and carry out the agency's other primary 
responsibilities related to regulating the safety of civil 
aviation and providing grants to airports to support capital 
projects. Starting in 2021, the corporation would assume 
responsibility for air traffic control. The FAA and DOT would 
continue to carry out certain activities related to regulating 
the safety of civil aviation (including air navigation services 
provided by the corporation), providing AIP grants to airports, 
and making payments to subsidize air service to rural 
communities.

Budgetary treatment of the AANS Corporation

    Although the proposed corporation would be independent and 
autonomous, in CBO's view it would effectively act as an agent 
of the federal government in carrying out a regulatory 
function. In particular:
           The AANS Corporation would be the only 
        entity authorized to provide air traffic services 
        within U.S. airspace other than the Department of 
        Defense and certain other entities with existing 
        responsibilities.
           The bill would authorize the corporation to 
        charge fees to users of air traffic control services, 
        require users to pay such fees, and specify that the 
        corporation could enforce that requirement in U.S. 
        courts.
    Hence, in keeping with guidance specified by the 1967 
President's Commission on Budget Concepts, the proposed 
corporation's cash flows should be recorded in the federal 
budget. Although the report issued by that commission has no 
legal status, it remains the primary authoritative statement on 
the scope of the federal budget. The commission recommended 
that, ``the budget should, as a general rule, be comprehensive 
of the full range of federal activities. Borderline agencies 
and transactions should be included . . . unless there are 
exceptionally persuasive reasons for exclusion.''\3\
---------------------------------------------------------------------------
    \3\President's Commission on Budget Concepts, Report of the 
President's Commission on Budget Concepts (October 1967), p.25.
---------------------------------------------------------------------------
    CBO has adhered to that principle since the Congressional 
budget process was established.\4\ For example, since the 1990s 
CBO and the Office of Management and Budget have included 
amounts collected and spent by the Universal Service Fund each 
year in the federal budget even though the company that manages 
the fund is not part of the federal government and the charges 
that telecommunications companies are required to pay do not 
flow through the U.S. Treasury.
---------------------------------------------------------------------------
    \4\See Congressional Budget Office, How CBO Determines Whether to 
Classify an Activity as Governmental When Estimating Its Budgetary 
Effects (June 2017), https://www.cbo.gov/publication/52803.
---------------------------------------------------------------------------
    More specifically, the user fees that would be assessed by 
the AANS Corporation should be classified as federal revenues, 
largely because of their compulsory nature. In CBO's view, 
subsequent spending of such fees, as well as any spending 
financed by debt issued by the corporation (which would be 
backed by the entity's authority to set fees at levels 
necessary to recover its costs and to compel users to pay such 
fees), should be classified as federal direct spending because 
that spending would not be contingent on any further 
legislation.
    Basis of Estimate: H.R. 2997 would effectively reclassify, 
from discretionary to mandatory, federal spending related to 
air traffic control. Broadly speaking, CBO expects that the 
amount of spending for air traffic control under H.R. 2997 
would be similar to the amount of spending for such activities 
reflected in CBO's baseline projections. In that sense, 
increases in direct spending for the proposed AANS Corporation 
would reduce the need for future appropriations to the FAA. 
However, in CBO's cost estimates for proposed legislation, 
changes in authorized spending subject to appropriation are not 
estimated relative to CBO's baseline projections; rather, we 
report the differences between amounts authorized to be 
appropriated under proposed legislation and authorization 
levels specified for future years under current law. Under 
current law, no authorizations for federal aviation programs 
are in place beyond 2017.
    For this estimate CBO assumes that H.R. 2997 will be 
enacted early in fiscal year 2018 and that appropriations will 
be provided as specified by the bill. Estimates of outlays are 
based on historical spending patterns for major activities 
carried out by the FAA. We also assume that the proposed 
transfer of operational control over air traffic control 
services would occur on the date specified in the legislation, 
that the AANS Corporation would begin to collect and spend user 
fees in fiscal year 2021, and that it would continue to 
administer spending of balances previously appropriated to the 
FAA for activities related to air traffic control.
    Over the next 10 years, CBO estimates that enacting H.R. 
2997 would increase direct spending by $90.7 billion and 
increase revenues by $70.0 billion. Additionally, discretionary 
spending to implement the bill would total $52.3 billion, 
subject to appropriation of the authorized amounts, CBO 
estimates (see Table 2).

                                            TABLE 2--EFFECTS ON DIRECT SPENDING AND REVENUES UNDER H.R. 2997
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in billions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              INCREASES IN DIRECT SPENDING
 
Operations of the AANS Corporation
    Estimated Budget Authority....................     0.0     0.0     0.0    12.6    13.0    13.4    13.8    14.2    14.6    15.1      25.6       96.7
    Estimated Outlays.............................     0.0     0.0     0.0     9.3    11.6    12.7    13.6    14.1    14.5    15.0      20.8       90.7
Civil Service Retirement and Health Benefits
    Estimated Budget Authority....................     0.0     0.0       *       *       *       *       *       *       *       *         *          *
    Estimated Outlays.............................     0.0     0.0       *       *       *       *       *       *       *       *         *          *
Airport Improvement Program
    Estimated Budget Authority....................     0.2     0.3     0.4     0.5     0.6     0.6     0.6     0.6     0.6     0.6       2.0        5.2
    Estimated Outlays.............................     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0       0.0        0.0
    Total Changes
    Estimated Budget Authority....................     0.2     0.3     0.4    13.1    13.6    14.0    14.4    14.9    15.3    15.7      27.6      102.0
    Estimated Outlays.............................     0.0     0.0       *     9.3    11.6    12.7    13.6    14.1    14.5    15.0      20.8       90.7
 
                                                         INCREASES AND DECREASES (-) IN REVENUES
 
Gross AANS Corporation Fees for Air Traffic            0.0     0.0     0.0    12.2    12.6    13.0    13.5    14.0    14.5    15.0      24.7       94.6
 Services.........................................
Reduced Revenues from Payroll and Income Taxes....     0.0     0.0     0.0    -3.2    -3.3    -3.4    -3.5    -3.6    -3.8    -3.9      -6.4      -24.6
    Net Changes in Revenues.......................     0.0     0.0     0.0     9.0     9.3     9.6    10.0    10.3    10.7    11.1      18.3       70.0
                                                            NET INCREASE IN THE DEFICIT FROM
                                                         CHANGES IN DIRECT SPENDING AND REVENUES
 
Impact on Deficit.................................     0.0     0.0       *     0.3     2.3     3.1     3.6     3.8     3.8     3.9       2.6       20.7
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = between -$50 million and $50 million; Components may not sum to totals due to rounding.
aBudget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of budget authority; however outlays from that
  contract authority are subject to limitations on obligations specified in annual appropriation acts and are therefore considered discretionary.

Direct spending

    Nearly all of the estimated increase in direct spending 
under H.R. 2997 represents spending by the proposed 
corporation. In addition, CBO estimates that transferring FAA 
employees to the AANS Corporation would affect federal spending 
for health and retirement benefits for some people. In 
contrast, CBO expects that conveying property related to air 
traffic control to the proposed corporation and authorizing the 
corporation to sell such property and spend the proceeds would 
have no significant net effect on the federal budget. Finally, 
H.R. 2997 would increase mandatory contract authority for the 
Airport Improvement Program, but because FAA's authority to 
spend such contract authority would be subject to obligation 
limitations specified in annual appropriation acts, any 
resulting outlays would be considered discretionary.
    Operations of the AANS Corporation. Under H.R. 2997 the 
corporation would have authority to levy fees on users of air 
traffic services and to use those amounts to cover all of the 
entity's financial requirements, including debt service costs 
stemming from the corporation's authority to issue bonds. CBO 
estimates that resulting direct spending would total $90.7 
billion over the 2021-2027 period.
    For this estimate, CBO assumes that the corporation's 
annual funding requirements would largely remain in line with 
current estimates of the FAA's full operating and capital costs 
related to air traffic control. According to the FAA, funding 
related to air traffic control totals nearly $10.7 billion in 
2017. Assuming that spending for personnel, facilities and 
equipment, and other expenses grow at rates of anticipated 
growth for wages and infrastructure-related investments, CBO 
estimates that the corporation would obligate roughly $12.1 
billion in 2021 to assume control of those activities.
    In addition, CBO expects that the corporation would 
increase capital spending relative to that base amount, 
particularly to make additional investments in facilities, 
equipment, and technologies related to modernizing the air 
traffic control system, commonly referred to as NextGen. Over 
the past several years, a wide range of studies and reports 
prepared by the DOT's Inspector General, the Government 
Accountability Office (GAO), and aviation stakeholders 
generally characterize the FAA's existing efforts to implement 
projects related to NextGen as behind schedule, particularly 
compared to technologies used by providers of air navigation 
services in other countries.\5\ In addition, representatives of 
organizations that would be represented on the proposed 
corporation's board of directors have generally called for a 
reprioritization of modernization activities to accelerate the 
adoption of technologies that would increase the efficiency of 
air traffic operations.
---------------------------------------------------------------------------
    \5\See for example: Government Accountability Office, Air Traffic 
Control Modernization: Management Challenges Associated with Program 
Costs and Schedules Could Hinder NextGen Implementation, February 2012, 
GAO-12-223, http://www.gao.gov/assets/590/588627.pdf; and Office of 
Inspector General, Department of Transportation, Audit Report: FAA 
Reforms Have Not Achieved Expected Cost, Efficiency, and Modernization 
Outcomes (January 15, 2016), AV-2016-015, https://www.oig.dot.gov/
sites/default/files/FAA%20Organizational%20Structure-
Final%20Report%5E1-15-16.pdf
---------------------------------------------------------------------------
    According to the FAA, under current law, the agency plans 
to spend roughly $1 billion annually over the next several 
years for modernization activities. Under H.R. 2997, CBO 
expects that the corporation would exercise its authority to 
issue bonds to raise funds to make additional investments. The 
timing and magnitude of such investments is highly uncertain 
and would depend on priorities identified by the corporation. 
For this estimate, CBO assumes that additional capital spending 
related to modernization would average between $500 million and 
$600 million annually, bringing the total amount of 
modernization-related spending to about $1.5 billion per year 
over the 2021-2027 period.\6\
---------------------------------------------------------------------------
    \6\The authority to borrow directly from the public and then 
obligate amounts so borrowed is considered borrowing authority, a 
mandatory form of budget authority. In the case of the ATC Corporation, 
proceeds from the sale of bonds would be considered a means of 
financing and not reflected in budget totals. Rather, the budget would 
record obligations incurred against amounts borrowed at the time when 
such obligations occur, and outlays would reflect the timing and pace 
of capital acquisitions and related debt service costs.
---------------------------------------------------------------------------
    All told, CBO estimates that budget authority recorded for 
the corporation would total $12.6 billion in 2021 and gradually 
increase to $15.1 billion by 2027, for a total of nearly $96.7 
billion over the 2021-2027 period. That amount includes $4 
billion in borrowing authority stemming from the corporation's 
authority to issue bonds. CBO expects that most of the funding 
would be derived from fees that the corporation would charge 
for air traffic services, as discussed below under the heading 
``Revenues''. (In addition, CBO assumes that in the initial 
years following the transition, the corporation would oversee 
residual spending of amounts previously appropriated to the FAA 
for activities related to air traffic control.)
    In total, assuming that outlays of the AANS Corporation 
would follow historical spending patterns for the FAA, CBO 
estimates that resulting expenditures would total $91 billion 
over the 2021-2027 period. That amount includes $56 billion in 
personnel costs, $19 billion for capital spending related to 
air navigation facilities and equipment (including $3.5 billion 
in additional investments to modernize such facilities and 
equipment), and $16 billion in other costs and ongoing expenses 
related to providing air traffic services. (Those amounts do 
not include residual spending of appropriations provided to the 
FAA before the proposed transition; see the discussion under 
the heading ``Spending Subject to Appropriation.'')
    Changes in Civil Service Retirement and Health Benefits. 
For purposes of this estimate, CBO assumes that the AANS 
Corporation would provide salaries and benefits that are 
comparable to those offered to FAA employees under current law. 
However, the proposed transition could cause some retirement-
eligible employees to retire earlier than they would under 
current law. CBO estimates that about 5 percent of retirement-
eligible employees in 2020 and 2021 would retire an average of 
one year earlier than under current law. Accelerated retirement 
for that group of about 500 employees (approximately one 
quarter of whom are estimated to be air traffic controllers) 
would, on net, increase mandatory spending for retirement 
annuities and Federal Employees Health Benefit premiums for the 
period of time during which those early retirees would remain 
employees under current law. Over the long run, however, 
annuity payments to such individuals--which are based in part 
on years of service and salary levels--would be slightly lower 
than they otherwise would have been if those individuals had 
remained in service and continued to earn pay increases. CBO 
projects that net increases in mandatory spending would total 
about $23 million over the 2020-2027 period.
    Budgetary Effects of Conveying Property and Access to 
Spectrum-Related Data and Systems to the AANS Corporation. H.R. 
2997 would specify procedures for the Secretary of 
Transportation to convey to the AANS Corporation, for no 
consideration, any real and personal property (including air 
navigation facilities) deemed necessary for providing air 
traffic services. Once the property was conveyed, the 
corporation could sell it and use the proceeds to make capital 
investments related to air traffic control infrastructure.
    The proposed conveyances would affect the budget only to 
the extent that they would affect the timing or magnitude of 
cash flows that the affected assets would otherwise generate 
under current law. The FAA already has broad authority to sell 
such property and spend the proceeds; because any increase in 
receipts from property sales is offset by a corresponding 
increase in spending soon thereafter, the agency's use of such 
authority ultimately has no significant net effect on federal 
spending. Similarly, although the timing and magnitude of 
receipts and spending associated with transactions pursued by 
the corporation could differ from those that might occur under 
current law, CBO estimates that transactions under H.R. 2997 
would ultimately have no net effect on the federal budget.
    H.R. 2997 would retain the existing legal framework 
governing the use of the electromagnetic spectrum. As a result, 
the spectrum currently used by the FAA would continue to be 
managed as federal frequencies but would be used by the 
corporation. For this estimate, CBO assumes that requiring the 
Secretary to provide the corporation access to spectrum-related 
data and systems would have no significant effect on the use or 
disposition of FAA's spectrum assignments relative to current 
law. As a result, CBO estimates that the bill would have a 
negligible effect on direct spending for spectrum relocation or 
research activities and would not affect the timing or amount 
of offsetting receipts from future auctions of commercial 
licenses.
    Airport Improvement Program. Through the AIP, the FAA 
provides grants to public-use airports for projects to enhance 
safety and increase airports' capacity for passengers and 
aircraft. Under H.R. 2997, the FAA would continue to operate 
this program after transferring operational control over air 
traffic control to the AANS Corporation.
    H.R. 2997 would provide contract authority for the AIP 
through fiscal year 2023. The FAA Extension, Safety and 
Security Act of 2016 provided the FAA with $3.35 billion in 
contract authority through September 30, 2017. Pursuant to 
provisions of law that govern CBO's baseline projections, 
funding for certain expiring programs--such as contract 
authority for AIP--is assumed to continue beyond the scheduled 
expiration date for budget projection purposes. Consistent with 
that practice, CBO's baseline incorporates the assumption that 
AIP contract authority over the 2018-2027 period will remain at 
the 2017 level of $3.35 billion per year.
    Relative to current law, H.R. 2997 would provide $22.7 
billion in new contract authority. That amount includes $3.6 
billion in 2018 and amounts for subsequent years that would 
gradually increase to just under $4 billion by 2023. Consistent 
with CBO's methodology for projecting contract authority under 
proposed legislation, we assume that contract authority for AIP 
would continue to be provided after 2023 and would remain at 
about $4 billion annually.
    Under that assumption, CBO estimates that contract 
authority under H.R. 2997 would exceed the levels of contract 
authority already projected in the CBO baseline by $5.2 billion 
over the 2018-2027 period. (Because spending from contract 
authority is controlled by obligation limitations specified in 
annual appropriation acts, outlays of the AIP are considered 
discretionary.)

Revenues

    Upon assuming operational control over air traffic 
services, H.R. 2997 would authorize the AANS Corporation to 
charge fees to users of such services, require users to pay 
such fees, and allow the corporation to enforce that 
requirement in U.S. courts. The bill would specify certain 
requirements that the corporation must follow in setting such 
fees. In particular, fees must be consistent with certain 
policies set forth by the International Civil Aviation 
Organization, which generally relate the reasonableness of fees 
levied by providers of air navigation services to the cost of 
providing such services. Under H.R. 2997, fees could not be 
imposed for services provided for operations that involve 
aircraft owned or operated by the U.S. military or operations 
of aircraft that are considered public aircraft. The bill also 
would prohibit the corporation from charging fees for services 
to support operations of civil aircraft related to air tours; 
non-scheduled service; or recreational, private, agricultural, 
and certain industrial activities.
    The bill would require the AANS Corporation to publish the 
initial schedule of fees at least 180 days before the date when 
it would assume operational control over air traffic services 
and outline procedures through which users of such services 
could dispute the reasonableness of such fees. Under the bill, 
the Secretary of Transportation would have a role in overseeing 
any such disputes.
    For this estimate, CBO assumes that the corporation would 
begin collecting fees on October 1, 2020, and that such fees 
would be set as necessary to cover its annual funding 
requirements (including debt service on any bonds issued). CBO 
estimates those amounts would initially total about $12.2 
billion in 2021 and grow to $15.0 billion by 2027. We estimate 
that revenues from fees would be roughly equal to those 
amounts.\7\
---------------------------------------------------------------------------
    \7\Estimates of user fees under H.R. 2997 are equivalent to roughly 
70 percent of the total amount of aviation-related revenues included in 
CBO's baseline projections. H.R. 2997 would not extend those taxes 
beyond their scheduled expiration nor would it address whether the fees 
would be collected or terminated once the ATC Corporation assumes 
responsibility for air traffic control. Under current law, most 
aviation-related excise taxes are scheduled to expire after March 31, 
2016; however, pursuant to provisions of law that govern CBO's baseline 
projections, such taxes are assumed to continue beyond their scheduled 
expiration date for budget projection purposes (see Additional 
Information).
---------------------------------------------------------------------------
    Because excise taxes and other indirect business taxes 
(such as assessments by the AANS Corporation) reduce the base 
of income and payroll taxes, higher amounts of those indirect 
business taxes would lead to reductions in revenues from income 
and payroll taxes. As a result, revenues from the fees 
collected by the corporation would be partially offset in the 
federal budget by a loss of income and payroll tax receipts 
equal to about 26 percent of the fees each year. Thus, CBO 
estimates that enacting H.R. 2997 would increase net revenues 
by about $70 billion over the 2021-2027 period.

Spending subject to appropriation

    H.R. 2997 would authorize appropriations totaling $48.2 
billion over the 2018-2023 period for the FAA and related DOT 
activities. Most of that amount--$40.6 billion--would be 
specifically authorized for those agencies to continue to 
operate all functions, including those related to air traffic 
control, through fiscal year 2020. Starting in 2021, the AANS 
Corporation would assume operational control over the air 
traffic control system, and the FAA and other offices within 
the Department of Transportation would continue to perform 
certain regulatory and safety-related functions, provide grants 
to airports to support capital projects, make payments to air 
carriers that provide service to certain rural communities, and 
carry out other administrative requirements. For those 
activities, the bill would authorize appropriations totaling 
$7.6 billion over the 2021-2022 period.
    Assuming appropriation of the specified amounts (as well as 
the enactment of limitations on obligations of contract 
authority for the Airport Improvement Program that are 
consistent with funding levels provided under H.R. 2997), CBO 
estimates that discretionary spending to implement H.R. 2997 
would total $52.3 billion over the 2018-2027 period (see Table 
3).

                                          TABLE 3. CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2997
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in billions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
FAA Operations:
    Authorization Level...........................    10.1    10.3    10.6     2.0     2.0     2.0     0.0     0.0     0.0     0.0      35.0       37.1
    Estimated Outlays.............................     9.0    10.0    10.4     2.9     2.3     2.1     0.2     0.1       *       *      34.6       37.1
Air Navigation Facilities and Equipment:
    Authorization Level...........................     2.9     3.0     3.0     0.2     0.2     0.2     0.0     0.0     0.0     0.0       9.3        9.5
    Estimated Outlays.............................     1.3     2.0     2.5     1.5     0.9     0.6     0.3     0.1       *       *       8.2        9.3
Airport Improvement Programa:
    Authorization Level...........................     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0     0.0       0.0        0.0
    Estimated Outlays.............................       *     0.2     0.3     0.4     0.4     0.5     0.6     0.6     0.6     0.6       1.3        4.3
Essential Air Service and Other Activities:
    Estimated Authorization Level.................     0.2     0.2     0.2     0.3     0.3     0.4     0.0     0.0     0.0     0.0       1.3        1.6
    Estimated Outlays.............................     0.1     0.2     0.2     0.3     0.3     0.4     0.1       *     0.0     0.0       1.1        1.6
    Total Changes:
        Estimated Authorization Level.............    13.2    13.5    13.8     2.5     2.5     2.6     0.0     0.0     0.0     0.0      45.6       48.2
        Estimated Outlays.........................    10.5    12.4    13.4     5.0     4.0     3.6     1.2     0.9     0.7     0.7      45.2       52.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: FAA = Federal Aviation Administration; * = less than $50 million.
a Budget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of budget authority; however, outlays from
  that contract authority are subject to limitations on obligations specified in annual appropriation acts and are therefore considered discretionary.

    FAA Operations. H.R. 2997 would authorize appropriations 
totaling $31.1 billion over the 2018-2020 period for FAA 
operations, primarily for salaries and expenses related to 
operating the air traffic control system. (Funding for FAA 
operations in 2017 totals $9.6 billion.) Starting in 2021, 
responsibility for most activities funded through that account 
would shift to the AANS Corporation, and the FAA would remain 
responsible for a much smaller set of regulatory and safety-
related activities. For those remaining purposes the bill would 
authorize appropriations totaling $6.0 billion over the 2021-
2023 period. Assuming appropriation of the amounts authorized 
over the 2018-2023 period, CBO estimates that resulting outlays 
would total $37.1 billion over the 2018-2027 period.
    Air Navigation Facilities and Equipment. H.R. 2997 would 
authorize appropriations totaling $9.0 billion over the 2018-
2020 period for programs to maintain and modernize 
infrastructure and systems for communication, navigation, and 
surveillance related to air travel. (Funding for facilities and 
equipment totals nearly $2.9 billion in 2017.) Starting in 2021 
the AANS Corporation would assume primary responsibility for 
operating, maintaining, and modernizing such infrastructure and 
equipment. The bill would authorize additional appropriations 
totaling $580 million over the 2021-2023 period for the FAA to 
carry out residual responsibilities related to the safety of 
air navigation facilities and equipment that would not be 
performed by the AANS Corporation. Assuming appropriation of 
the authorized amounts, CBO estimates that resulting outlays 
would total $9.3 billion over the 2018-2027 period (and $243 
million in later years).
    Airport Improvement Program. The proposed transfer of 
control over air traffic control would not affect the AIP, 
which the FAA would continue to administer under H.R. 2997. CBO 
estimates that contract authority for AIP grants to airports 
under H.R. 2997 would exceed the amounts of contract authority 
already assumed in the CBO baseline by $5.2 billion over the 
2018-2027 period. Such grants support planning and development 
of capital projects to enhance the infrastructure and capacity 
of public-use airports.
    Assuming that annual appropriations acts set obligation 
limitations for AIP spending that are equal to the levels of 
contract authority projected under H.R. 2997, CBO estimates 
that discretionary outlays for the program over the 2018-2027 
period would total $4.3 billion more than amounts projected in 
CBO's baseline through 2027 (and $940 million in later years).
    Essential Air Service and Other Activities. H.R. 2997 would 
authorize appropriations totaling $178 million in 2018 and $1.6 
billion over the 2018-2023 period for the Essential Air Service 
program, through which DOT makes payments to air carriers that 
provide service to certain rural communities. (Discretionary 
funding for such payments in 2017 totals $150 million.) The 
bill also would authorize the appropriation of $10 million 
annually over the 2018-2023 period for grants to help small 
communities enhance air service and would require DOT and the 
Government Accountability Office to complete various studies, 
reports, and administrative requirements. Assuming 
appropriation of amounts specified and estimated to be 
necessary for required studies, reports and administrative 
activities, CBO estimates that resulting outlays would total 
$1.6 billion over the next 10 years.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

  CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2997, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE ON JUNE 27, 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         By fiscal year, in millions of dollars--
                                ------------------------------------------------------------------------------------------------------------------------
                                   2017     2018     2019     2020     2021     2022     2023     2024     2025     2026     2027   2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.        0        0        0        9      296    2,253    3,099    3,585    3,751    3,830    3,898     2,557     20,721
Memorandum:
    Changes in Outlays.........        0        0        0        9    9,276   11,565   12,740   13,565   14,082   14,513   14,952    20,850     90,702
    Changes in Revenues........        0        0        0        0    8,981    9,312    9,641    9,980   10,331   10,683   11,054    18,292     69,980
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long term direct spending and deficits: CBO 
estimates that enacting the legislation would increase net 
direct spending and on-budget deficits by more than $5 billion 
in at least one of the four consecutive 10-year periods 
beginning in 2028. The effects in future years would be a 
continuation of the trends shown for the first decade.
    Additional information: The estimated changes in direct 
spending and revenues under H.R. 2997 reflect CBO's assessment 
of the budgetary impacts of enacting H.R. 2997 as a stand-alone 
measure. Ultimately, however, the net budgetary impact of 
activities related to air traffic control under H.R. 2997 would 
depend on the details of subsequent legislation that lies 
beyond the scope of this cost estimate. CBO cannot predict 
whether such additional legislation will be enacted pursuant to 
H.R. 2997, but expects that the overall net budgetary impact of 
shifting responsibility for air traffic control to the AANS 
Corporation would not necessarily increase future deficits by 
the amounts reflected in this cost estimate if additional 
legislation consistent with H.R. 2997 was enacted.
    Broadly speaking, while CBO estimates that the proposed 
corporation would spend more than the FAA otherwise will under 
current law for capital investments to modernize infrastructure 
and equipment related to the air traffic control system, CBO 
expects that underlying costs related to operating and 
maintaining that system would not change significantly under 
H.R. 2997. As a result, CBO expects that shifting 
responsibility for those costs to the proposed corporation 
would not materially change the magnitude of spending related 
to air traffic control if future appropriations for the FAA's 
retained responsibilities were reduced accordingly to reflect 
the shift--from mandatory to discretionary--of such spending. 
Under H.R. 2997, CBO expects that overall amounts of such 
federal spending would remain more or less the same, with 
incremental increases in spending stemming primarily from the 
AANS Corporation's authority to issue debt to finance 
additional investments related to modernization.
    Similarly, if future tax-related legislation separate from 
H.R. 2997 was enacted to reduce existing aviation-related 
excise taxes by amounts equivalent to new user fees that would 
be charged by the AANS Corporation under H.R. 2997, the 
resulting amount of revenues available to support air traffic 
control (and other aviation activities) would be largely 
unchanged and could continue to cover most, if not all 
aviation-related spending.
    Thus, if such additional legislation were enacted--
consistent with the proposed changes envisioned on H.R. 2997--
to effectively keep both aviation-related spending and revenues 
in line with current levels, CBO expects that resulting net 
increases in future deficits would largely reflect increased 
capital spending by the AANS Corporation to finance investments 
related to modernization, which CBO estimates will total about 
$3.5 billion over the period covered by this estimate. (That 
estimate of modernization spending is uncertain and could be 
higher or lower depending on future investment-related 
decisions of the AANS Corporation.)
    Intergovernmental and private-sector impact: The bill 
contains intergovernmental and private-sector mandates as 
defined in UMRA. CBO estimates that the aggregate cost of the 
mandates on public entities would fall below the annual 
threshold established in UMRA for intergovernmental mandates 
($78 million in 2017, adjusted annually for inflation). 
However, CBO estimates that the aggregate cost of the mandates 
on private entities would well exceed the annual threshold 
established in UMRA for private-sector mandates ($156 million 
in 2017, adjusted annually for inflation).

Mandates that apply to both public and private entities

    The bill would require operators of air ambulances to 
provide contact information on their website and in their 
communications to facilitate those consumers who may want to 
file complaints about service. The bill also would require air 
ambulance operators to disclose charges for air transportation 
services separately on invoices and provide consumer 
protections, if determined to be appropriate by the Secretary 
of Transportation. According to industry sources, there are 
about 300 air medical services in the United States. CBO 
estimates that the cost to comply with the requirements, which 
are mostly administrative, would be small.

Mandates and other effects on public entities

    The bill would preempt state and local authority over air 
traffic control services. Although the preemption would limit 
the application of state and local laws and regulations, CBO 
estimates that the bill would impose no duty on state or local 
governments that would result in additional spending or a loss 
of revenues.
    The bill would benefit public airports by expanding federal 
grant programs and the ability of airports to charge passenger 
fees that support airport improvement projects. Any costs those 
entities incur to meet grant requirements would result from 
complying with conditions of federal assistance.

Mandates that apply to private entities only

    User Fees for Air Traffic Control Services. The bill would 
require users of air traffic services provided by the American 
Air Navigation Services Corporation to pay fees for the use of 
those services. Such users would include air carriers and other 
private entities. CBO estimates that those fees would total 
about $12 billion in 2021 and gradually increase thereafter.
    Other Requirements for Air Carriers. The bill would impose 
several other mandates on air carriers. Specifically, the bill 
would require that air carriers:
           Prepare a fatigue risk management plan for 
        flight attendants, a document describing passengers' 
        rights, and an employee assault prevention and response 
        plan;
           Provide training to flight attendants and 
        other employees and comply with requirements for pilot 
        rest to be developed by an aviation rulemaking 
        committee;
           Provide information on company websites or 
        through other means about countries that may require an 
        airplane to be treated with insecticides;
           Include links to their customer service 
        plans on their websites and provide information about 
        baggage fees in internet fare quotations;
           Provide information about compensation and 
        accommodations in the event of a widespread disruption 
        of their operations;
           Ensure medical kits contain supplies for 
        treating children in emergencies, if determined to be 
        appropriate by the FAA;
           Comply with prohibitions on involuntarily 
        deplaning passengers and requirements for compensating 
        passengers denied boarding; and
           Comply with the bill's prohibitions against 
        in-flight voice communications on mobile devices.
    On the basis of information about existing training 
programs and current industry practices, CBO estimates that the 
cost of most of the other mandates in the above list would be 
small and that none would impose significant additional costs 
on air carriers relative to UMRA's threshold.
    The bill also would require air carriers to meet standards 
for seat dimensions established in a future FAA rulemaking. The 
cost of the mandate would include any loss of income stemming 
from a reduction in the number of seats available for 
passengers, which would depend on minimum dimensions that would 
be set forth in those regulations.

Requirements for other entities

    Manufacturers of Aircraft. The bill would impose a mandate 
on manufacturers by requiring them to install a secondary 
cockpit barrier on aircraft that are manufactured for delivery 
to passenger air carriers in the United States. Such barriers 
would include retractable screens and would have to be 
installed only on new aircraft delivered to passenger air 
carriers in the United States. Based on information from 
industry sources, CBO estimates that the cost of installing 
such barriers would total no more than $15 million annually.
    Ticket Agents. The bill would impose a mandate on ticket 
agents with annual revenues of $100 million or more by 
requiring them to meet minimum customer service standards to be 
established in future regulations. The bill would direct the 
Secretary of Transportation to consider standards for prompt 
refunds, options to hold fares at no cost, disclosures of 
cancellation policies, and notifications of itinerary changes. 
The cost of the mandate would depend on the standards set by 
the Secretary.
    Estimate prepared by: Federal costs and revenues: Megan 
Carroll (FAA, AANS Corporation spending and fees); Lori Housman 
(health benefits); Amber Marcellino (retirement benefits); and 
Kathleen Gramp (spectrum); Impact on state, local, and tribal 
governments: Jon Sperl; Impact on the private sector: Amy Petz.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation, as 
amended, are to reauthorize federal aviation programs 
administered by the FAA, including operating and capital 
funding. The legislation, as amended, also seeks to reform and 
modernize the structure of the Nation's ATC system by 
transferring operation of ATC services and related personnel 
and assets from the FAA to an independent, not-for-profit 
corporate entity to provide for more efficient operation and 
development of air traffic services in the United States. The 
legislation, as amended, also reforms and streamlines the FAA's 
safety certification processes and improves various aviation 
safety programs. Finally, H.R. 2997, as amended, addresses 
airline consumer issues and continues the process of 
integrating unmanned aircraft systems (UAS) into the National 
Airspace.

                          Advisory of Earmarks

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, the Committee is required to include a list 
of congressional earmarks, limited tax benefits, or limited 
tariff benefits as defined in clause 9(e), 9(f), and 9(g) of 
rule XXI of the Rules of the House of Representatives. No 
provision in the bill, as amended, includes an earmark, limited 
tax benefit, or limited tariff benefit under clause 9(e), 9(f), 
or 9(g) of rule XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 2997, as amended, establishes or reauthorizes a program 
of the federal government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                   Disclosure of Directed Rulemakings

    Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), 
the Committee estimates that enacting H.R. 2997, as amended, 
specifically directs the completion of specific rule makings 
within the meaning of section 551 of title 5, United States 
Code.
    Section 211 of H.R. 2997, as amended, requires the 
Secretary to establish procedures and regulations to ensure 
that all government activities supported by the FAA's provision 
of air traffic services will receive support from the 
Corporation.
    Section 211 of H.R. 2997, as amended, further requires the 
Secretary to issue performance-based regulations and safety 
standards for the operation of air traffic services by the 
Corporation, including the establishment of a safety management 
system. The Secretary must also establish procedures by which 
the Corporation would notify users of proposed charges and fees 
and also how the Secretary would review such proposals.
    Section 211 of H.R. 2997, as amended, also requires the 
Secretary to prescribe regulations establishing the procedures 
for acting upon a written complaint disputing air traffic 
services charges and fees.
    Section 411 of H.R. 2997, as amended, requires the 
Administrator to review and revise current regulations 
regarding first aid kits on Part 121 air carriers to ensure the 
needs of children are met.
    Section 414 of H.R. 2997, as amended, requires the 
Administrator to revise current regulations regarding the 
flight attendant duty period limitations and rest requirements.
    Section 416 of H.R. 2997, as amended, directs the 
Administrator to revise an ongoing rulemaking for the marking 
of covered towers as defined in the section.
    Section 432 of H.R. 2997, as amended, requires the 
Administrator to issue regulations for the certification of 
unmanned aircraft traffic management (UTM) systems as air 
navigation facilities.
    Section 432 of H.R. 2997, as amended, also requires the 
Secretary to issue safety and economic regulations for air 
carriers using small unmanned aircraft systems (UAS) to 
transport property.
    Section 432 of H.R. 2997, as amended, also requires the 
Administrator to establish a procedure for granting 
authorization for certain small unmanned aircraft.
    Section 432 of H.R. 2997, as amended, also requires the 
Administrator to issue regulations to authorize operation of 
small unmanned aircraft weighting 4.4 pounds or less without 
airman or airworthiness certifications.
    Section 502 of H.R. 2997, as amended, requires the 
Secretary to issue regulations to prohibit certain uses of 
mobile devices onboard aircraft.
    Section 505 of H.R. 2997, as amended, requires the 
Secretary to issue final regulations to amend section 41712 of 
title 49, United States Code, by clarifying that it is not an 
unfair or deceptive practice for an air carrier, indirect air 
carrier, foreign carrier, ticket agent, or other person 
offering to sell tickets for passenger air transportation, or a 
tour or tour component that must be purchased with air 
transportation, to state in an advertisement or solicitation 
the base fare for passenger air transportation as long as the 
government-imposed taxes and fees and the total costs of the 
air transportation are clearly and separately disclosed.
    Section 510 of H.R. 2997, as amended, requires the 
Secretary to issue such a final rule to clarify the levels of 
compensation that may be paid to passengers who are 
involuntarily denied boarding.
    Section 512 of H.R. 2997, as amended, requires the 
Secretary to issue regulations requiring air ambulance 
operators to disclose charges for air transportation services 
from charges for non-air transportation services and other 
consumer protections for users of air ambulance services.
    Section 514 of H.R. 2997, as amended, requires the 
Secretary to approve one-page submissions from air carriers 
that describe compensation or other customer service policies.
    Section 544 of H.R. 2997, as amended, requires the 
Secretary to issue regulations concerning accommodations for 
air travelers with disabilities relating to in-flight 
entertainment, accessible lavatories on single-aisle aircraft, 
and service animals.
    Section 608 requires the Administrator to carry out a 
rulemaking to increase the duration of aircraft registrations 
for noncommercial general aviation aircraft to ten years.
    Section 609 of H.R. 2997, as amended, requires the 
Secretary to promulgate a rulemaking to ensure that United 
States regulations on air transport of lithium cells and 
batteries are consistent with the requirements in the ICAO 
Technical Instructions.
    Section 613 of H.R. 2997, as amended, requires the 
Secretary to conduct a notice and comment rulemaking before DOT 
can implement the policy set forth in the notice of proposed 
policy entitled ``Proposal To Consider the Impact of One Engine 
Inoperative Procedures in Obstruction Evaluation Aeronautical 
Studies'' published by DOT on April 28, 2014.
    Section 618 of H.R. 2997, as amended, directs the 
Administrator to issue a notice of proposed rulemaking based on 
any consensus recommendations from the aviation rulemaking 
committee established in the section on flight and duty times 
for Part 135 pilots.
    Section 633 of H.R. 2997, as amended, requires the 
Secretary to publish a direct final rule on the expansion of 
waiver authority for the operation of UAS beyond visual line of 
sight, over people, or at night for the purposes of 
transporting property.
    Section 636 of H.R. 2997, as amended, directs the Secretary 
to issue a final rule to require large ticket agents to adopt 
minimum customer service standards.
    Section 641 of H.R. 2997, as amended, directs the 
Administrator to issue a rule that establishes minimum 
dimensions for passenger seats on aircraft operated by air 
carriers in interstate air transportation or intrastate air 
transportation, including minimums for seat pitch, width, and 
length, and that are necessary for the safety and health of 
passengers.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that section 211 of H.R. 
2997, as amended, contains a new section 90314, title 49, 
United States Code that clarifies and continues preemption of 
authority over air traffic services. Civil aviation has long 
been exclusively regulated by the federal government. The 
application of myriad and inconsistent state, local, and tribal 
laws to aviation would be detrimental to the safe and efficient 
operation of the United States aviation system.

                      Advisory Committee Statement

    Sections 302, 512, and 609 of this legislation, as amended, 
each establish an advisory committee, as defined by section 2 
of the Federal Advisory Committee Act (5 U.S.C. app.). Pursuant 
to section 5 of the Federal Advisory Committee Act, the 
Committee determines that the functions of these advisory 
committees are not being carried out by existing agencies or 
advisory commissions. The Committee notes that section 302 
specifically terminates an existing advisory committee upon the 
appointment of members to the newly created advisory committee. 
The Committee also determines that the advisory committees have 
a clearly defined purpose, fairly balanced membership, and meet 
all of the other requirements of section 5(b) of the Federal 
Advisory Committee Act.

                  Applicability of Legislative Branch

    The Committee finds section 211 of the bill, as amended 
specifically chapter 911 of title 49, United States Code, as 
added by that sectionu does relate to the terms and conditions 
of employment or access to public services or accommodations 
within the meaning of section 102(b)(3) of the Congressional 
Accountability Act (Public Law 104-1). However, these 
provisions are not made applicable to the legislative branch, 
but rather apply only to the Corporation, a federally 
chartered, private, not-for-profit Corporation created by 
section 211. Applying such provisions to the legislative branch 
would be duplicative of laws and regulations already applicable 
to the legislative branch.

               Section-by-Section Analysis of Legislation

                        Title I--Authorizations

                  SUBTITLE A--FUNDING OF FAA PROGRAMS

Section 101. Airport planning and development and noise compatibility 
        planning and programs

    This section authorizes from the Airport and Airway Trust 
Fund the following amounts for the FAA's Airport Improvement 
Program (AIP) account: $3.597 billion for fiscal year 2018; 
$3.666 billion for fiscal year 2019; $3.746 billion for fiscal 
year 2020; $3.829 billion for fiscal year 2021; $3.912 billion 
for fiscal year 2022; and $3.998 billion for fiscal year 2023. 
In addition, this section extends the obligation authority to 
September 30, 2023.
    The FAA has invested in an innovative and timely program 
known as the Airport Privatization Pilot Program (APPP). Given 
the current and anticipated budgetary environment, there has 
never been a time for greater emphasis on the need for private 
investment to work alongside the federal government to expedite 
and fund projects that are vital to the National Airspace 
System (NAS). The APPP offers such an opportunity. Project 
applications which have been preliminarily accepted will 
leverage considerable private capital, reduce the need for 
traditional federal investment in public-use infrastructure, 
and create new jobs for the Nation. To fulfill the intent of 
the APPP, FAA should expedite final processing of pending 
applications and provide priority funding for projects that are 
associated with the APPP and enable innovative financing of 
infrastructure projects.

Section 102. Facilities and equipment

    This section authorizes from the Airport and Airway Trust 
Fund the following amounts for FAA's Facilities & Equipment 
(F&E) account: $2.920 billion for fiscal year 2018; $2.984 
billion for fiscal year 2019; and $3.049 billion for fiscal 
year 2020. Starting in fiscal year 2020, the Corporation will 
fund F&E activities related to ATC services from fees collected 
by the Corporation. Starting in fiscal year 2021, F&E 
activities, such as those related to safety oversight, that 
will remain with the FAA, will be funded from the General Fund. 
This section also authorizes from the General Fund the 
following for FAA's F&E account: $189 million for fiscal year 
2021; $193 million for fiscal year 2022; and $198 million for 
fiscal year 2023.

Section 103. FAA operations

    This section authorizes from the General Fund the following 
for FAA's Operations account: $2.059 billion for fiscal year 
2018; $2.126 billion for fiscal year 2019; $2.197 billion for 
fiscal year 2020; $1.957 billion for fiscal year 2021; $2.002 
billion for fiscal year 2022; and $2.047 billion for fiscal 
year 2023. This section additionally authorizes from the 
Airport and Airway Trust Fund the following for FAA's 
Operations account: $8.073 billion for fiscal year 2018; $8.223 
billion for fiscal year 2019; and $8.374 billion for fiscal 
year 2020. Starting in fiscal year 2020, the Corporation will 
fund all Operations activities related to ATC services from 
fees collected by the Corporation.

Section 104. Adjustment to AIP program funding

    This section discontinues a formula required in the FAA 
Modernization and Reform Act of 2012 (Public Law 112-95) that 
created additional contract authority for AIP if the 
appropriated funding levels for the F&E program were not equal 
to the authorized levels included in the Act.

Section 105. Funding for aviation programs

    This section discontinues the Airport and Airway Trust Fund 
guarantee included in the FAA Modernization and Reform Act of 
2012, which provided a formula to determine the amount to be 
made available from the aviation trust fund each year to fund 
the FAA.

Section 106. Applicability

    This section sets the effective date of subtitle A at 
October 1, 2017.

                 SUBTITLE B--PASSENGER FACILITY CHARGES

Section 111. Passenger facility charge modernization

    This section eliminates the following criteria imposed on a 
Passenger Facility Charge (PFC) of $4 or $4.50: (1) that the 
Secretary must find, for medium or large hub airports, that a 
PFC of $4 or $4.50 will be used to fund a project that makes a 
``significant contribution to improving air safety and 
security, increasing competition among air carriers, reducing 
current or anticipated congestion, or reducing the impact of 
aviation noise on people living near the airport;'' and (2) 
that the Secretary must find that a PFC of $4 or $4.50 will be 
used to fund a project that cannot be expected to be funded 
through AIP.

Section 112. Pilot program for PFC authorizations

    This section expands the pilot program expediting the 
authorization of a PFC at nonhub airports to all primary 
airports.

         SUBTITLE C--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

Section 121. Clarification of airport obligation to provide FAA airport 
        space

    This section prohibits the FAA from requiring airports to 
provide the agency with construction services or building space 
without compensation or reimbursement, with certain exceptions.

Section 122. Mothers' rooms at airports

    This section requires, within two years of enactment, 
medium and large airports to maintain a ``lactation area'' in 
the sterile areas of each passenger terminal building for 
mothers to feed their infants. This section also allows the 
Secretary to temporarily waive the requirement that the 
lactation area be located in the sterile area if construction 
activities make it impracticable or unsafe to do so. 
Additionally, it allows the construction or installation of 
lactation areas to be eligible for AIP funding at any 
commercial service airport.

Section 123. Extension of competitive access reports

    This section extends the sunset date of competition access 
reports in section 47107(r)(3) of title 49, United States Code, 
through fiscal year 2023.

Section 124. Grant assurances

    This section allows GA airports to permit the construction 
of exclusively recreational aircraft by private individuals in 
airport hangars without violating any grant assurances. 
Further, it permits the leasing of airport land not needed for 
aeronautical purposes to local governments for recreational 
use, provided the use is temporary and does not interfere with 
the safety of the airport.

Section 125. Government share of project costs

    This section corrects an unintentional effect of section 
137 of the FAA Modernization and Reform Act of 2012 by ensuring 
that small airports that received an AIP grant in fiscal year 
2011 for a multi-phased project will be able to complete that 
project with the 95 percent federal share that was assumed in 
the project planning.

Section 126. Updated veterans' preference

    This section updates the definition of ``Afghanistan-Iraq 
war veteran'' used for veteran's preference purposes when 
entering into contracts to carry out airport development 
projects.

Section 127. Special rule

    This section extends for fiscal years 2018 through 2020 
authority for airports without a classified status listed in 
the National Plan of Integrated Airport Systems to continue 
receiving the non-primary entitlement funding they received 
from AIP in fiscal year 2013.

Section 128. Marshall Islands, Micronesia, and Palau

    This section extends AIP eligibility for discretionary 
grants and funding from the Small Airport Fund to airports 
located in the Republic of the Marshall Islands, the Federated 
States of Micronesia, and Palau.

Section 129. Nondiscrimination

    This section ensures Indian tribes may establish employment 
and contracting preference for projects at tribally owned 
airports or airports located on Indian reservations, consistent 
with the Civil Rights Act of 1964.

Section 130. State Block Grant Program expansion

    This section expands the number of states allowed to 
participate in the State Block Grant Program from 10 states to 
20 states.

Section 131. Midway Island Airport

    This section extends the authority of the Secretary 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.

Section 132. Property conveyance releases

    This section authorizes the Secretary 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 
United States conveyed certain property. The section also 
requires that the airport, city, or county receive fair market 
value for the sale of any property interest and dedicate any 
sale proceeds to airport development.

Section 133. Minority and disadvantaged business participation

    This section declares the findings of Congress that there 
remains a compelling need for the continuation of the airport 
disadvantaged business enterprise (DBE) program and the airport 
concessions DBE program.

Section 134. Contract Tower Program

    This section amends the FAA Contract Tower Programs in 
several ways. Before an airport is admitted into the contract 
tower program, the FAA performs a rigorous benefit-cost (b/c) 
analysis to ensure that the safety benefits will outweigh the 
economic costs. This section identifies the criteria that 
should be used to evaluate airports in the program as well as 
those applying to enter the program. The section also outlines 
the criteria that may not be used by the FAA in the b/c 
analysis. Additionally, except for airports in the contract 
tower cost-share program, it prohibits the Secretary from 
calculating a new b/c ratio for airports in the program unless 
the annual aircraft traffic at the airport decreases by more 
than 25 percent from the previous year or by more than 60 
percent cumulatively over a three-year period. Further, this 
section requires the Secretary, within 90 days of receiving an 
application to the program, to calculate a b/c ratio for the 
purposes of selecting towers for participation in the program. 
This section requires the Secretary to automatically add a 10-
percentage point margin of error to the b/c ratio to 
acknowledge and account for the direct and indirect economic 
effects and other factors that are not included in the criteria 
the Secretary used in calculating that ratio. This section 
outlines procedures to ensure that airports have an adequate 
opportunity to review and appeal the FAA's b/c analysis. The 
section clarifies that construction and improvement of towers 
whose airport sponsors participated in the FAA Contract Tower 
Program before the date of transfer of the operation of air 
traffic services to the Corporation will remain eligible for 
AIP grant funding and outlines what the eligibility 
requirements will be for such grant funding both before and 
after the date of transfer. This section, additionally, sets 
forth how safety oversight of contract towers will be conducted 
both before and after the date of transfer to the ATC 
Corporation. Lastly, it eliminates the cap on the federal share 
of contract tower construction costs.
    To ensure that airports with high levels of traffic are 
providing adequate levels of air traffic service, the Committee 
believes that the FAA should assess whether FAA contract towers 
at small or medium hub airports operating on the date of 
enactment would be more appropriately operated as FAA-staffed 
ATC Towers.

Section 135. Airport access roads in remote locations

    This section expands the permissible use of AIP funds for 
fiscal years 2017 through 2020 to include the development of an 
airport access road in a non-contiguous state for the purpose 
of enabling the construction of new airports.

Section 136. Buy America requirements

    This section requires the FAA to issue an informal public 
notice of any project-specific Buy America waiver within 10 
days prior to the issuing of the waiver. The justification of 
the waiver determination is required to be publicly available 
and easily accessible on the DOT's website and the Secretary is 
required to provide a public comment opportunity period.

        SUBTITLE D--AIRPORT NOISE AND ENVIRONMENTAL STREAMLINING

Section 151. Recycling plans for airports

    This section clarifies that projects appearing in an 
airport master plan must address the feasibility of solid waste 
recycling, which was a requirement under the FAA Modernization 
and Reform Act of 2012.

Section 152. Pilot program sunset

    This section repeals the airport ground support equipment 
emissions retrofit pilot program established under section 
47140 of title 49, United States Code.

Section 153. Extension of grant authority for compatible land use 
        planning and projects by state and local governments

    This section extends the grant program for the compatible 
land use planning and project program through September 30, 
2023.

Section 154. Updating airport noise exposure maps

    This section revises section 47503(b) of title 49, United 
States Code, to clarify when airports must submit updated noise 
exposure maps to the Secretary in order to encourage additional 
participation in the Part 150 noise mitigation program.

Section 155. Stage 3 aircraft study

    This section directs the Comptroller General to conduct a 
review of the benefits, costs, and other impacts of a phase out 
of stage 3 aircraft. The Comptroller General is required to 
submit a report to Congress no later than 18 months after the 
date of enactment.

Section 156. Addressing community noise concerns

    This section requires the FAA to consider the feasibility 
of dispersal headings or other lateral track variations to 
address noise concerns from affected communities when proposing 
new area navigation departure procedures or amending an 
existing procedure below 6,000 feet over noise sensitive areas.

Section 157. Study on potential health impact of overflight noise

    This section directs the Administrator to enter into an 
agreement with an eligible institution of higher education, to 
conduct a study on the health impacts of noise from aircraft 
flights on residents exposed to a range of noise levels 
focusing on a major metropolitan area. The areas that may be 
studied include, but are not limited to, Boston, Chicago, New 
York, the Northern California Metroplex, Phoenix, the Southern 
California Metroplex, and Washington, District of Columbia. The 
FAA is required to submit a report to Congress no later than 90 
days after it receives the results of the study.

Section 158. Environmental mitigation pilot program

    The section directs the Secretary to carry out a pilot 
program comprised of no more than six projects at public-use 
airports aimed at achieving the most cost-effective and 
measurable reductions in or mitigation of the impacts of 
aircraft noise, airport emissions, and water quality at the 
airport or within five miles of the airport.

Section 159. Airport noise exposure

    The section directs the Administrator to conduct a review 
of the relationship between aircraft noise and its effect on 
communities surrounding airports. FAA is required to submit a 
report to Congress no later than two years after the date of 
enactment containing preliminary recommendations the 
Administrator determines appropriate for revising the land use 
compatibility guidelines in Part 150 of title 14, Code of 
Federal Regulations.

Section 160. Community involvement in FAA NextGen projects located in 
        metroplexes

    The section directs the Administrator, no later than 180 
days after the date of enactment, to conduct a review of the 
FAA's community involvement in NextGen projects located in 
metroplexes. FAA is required to submit a report to Congress no 
later than 60 days after completion of the review on how they 
can improve community involvement, how they will engage 
airports and communities in projects, and lessons learned from 
NextGen projects and pilot programs.

Section 161. Critical habitat on or near airport property

    This section directs the Secretary to work with other 
federal agencies and states to ensure that designations of 
critical habitat on or near airports do not interfere with the 
safe operation of aircraft.

Section 162. Clarification of reimbursable allowed costs of FAA 
        memoranda of agreement

    The section amends existing law to clarify that certain 
noise mitigation projects are an eligible AIP expense under 
certain existing FAA memorandums of agreement.

         Title II--American Air Navigation Services Corporation

Section 201. Purposes

    This section establishes that the purpose of the title is 
to transfer air traffic services and related assets from the 
FAA to a separate not-for-profit corporate entity to provide 
more efficient operation and improvement of air traffic 
services in the United States.

       SUBTITLE A--ESTABLISHMENT OF AIR TRAFFIC SERVICES PROVIDER

Section 211. American Air Navigation Services Corporation

    This section amends title 49, United States Code, by 
inserting a new Subtitle XI--the American Air Navigation 
Services Corporation--at its end. The new Subtitle XI contains 
the following provisions:

Chapter 901--General provisions

    Section 211 of the bill also adds a new chapter 901 of 
title 49, United States Code, by adding the following new 
section:
            Section 90101. Definitions
    This section provides a number of definitions and sets 
October 1, 2020, as the date on which the Corporation assumes 
operational control of air traffic services from the FAA.

Chapter 903--Establishment of air traffic services provider; transfer 
        of air traffic services

    Section 211 of the bill also adds a new chapter 903 of 
title 49, United States Code, by adding the following new 
sections:
            Section 90301. Establishment of Corporation
    This section establishes the Corporation as a federally 
chartered, not-for-profit corporation; entitles the Corporation 
to exclusive use of the name American Air Navigation Services 
Corporation; allows the Corporation to be incorporated in a 
state of its choosing; and allows it to do business under a 
name of its choosing.
            Section 90302. Transfer of air traffic services
    This section directs the Secretary to transfer operational 
control over air traffic services within the United States 
airspace and airspace delegated the United States to the 
Corporation on the date of transfer. It grants the Corporation 
exclusive permission to provide air traffic services within 
United States airspace, except for the DOD (as determined by 
the President), entities to which the United States has 
delegated certain air traffic responsibilities, entities with 
which the Corporation has contracted, and certain providers of 
unmanned aircraft traffic management systems.
            Section 90303. Role of Secretary in transferring air 
                    traffic services to Corporation
    This section directs the Secretary to manage and execute 
the transfer of air traffic services to the Corporation. It 
prohibits the Secretary from delegating authority under the 
subtitle to the Administrator unless otherwise provided.
            Section 90304. Status and applicable laws
    This section establishes the legal status and laws 
applicable to the Corporation. The section also clarifies that 
the federal government is not liable for any actions or 
inactions of the Corporation. Additionally, it directs that the 
Corporation be required to maintain its not-for-profit status 
under the Internal Revenue Code of 1986. Lastly, it clarifies 
that the federal government does not implicitly or explicitly 
guarantee the Corporation's debt.
            Section 90305. Nomination Panels for Board
    This section defines the composition, terms and 
qualifications of the Nomination Panels for the Board of 
Directors of the Corporation. The Nomination Panels will be 
responsible for nominating qualified persons to serve on the 
Board of Directors of the Corporation. The Nomination Panels 
will be comprised of representatives appointed by the following 
aviation stakeholder groups: passenger air carriers, cargo air 
carriers, regional air carriers, GA, business aviation, air 
traffic controllers, airports, and commercial pilots.
            Section 90306. Board of Directors
    This section vests the powers of the Corporation in a Board 
of Directors that governs the Corporation. It establishes the 
following composition of the Board:
          --The Chief Executive Officer (CEO) of the 
        Corporation;
          --Two Directors appointed by the Secretary of 
        Transportation;
          --One Director nominated by the Passenger Air Carrier 
        Nomination Panel;
          --One Director nominated by the Cargo Air Carrier 
        Nomination Panel;
          --One Director nominated by the Regional Air Carrier 
        Nomination Panel;
          --One Director nominated by the General Aviation 
        Nomination Panel;
          --One Director nominated by the Business Aviation 
        Nomination Panel
          --One Director nominated by the Air Traffic 
        Controller Nomination Panel;
          --One Director nominated by the Airport Nomination 
        Panel;
          --One Director nominated by the Commercial Pilot 
        Nomination Panel; and
          --Two ``at-large'' Directors nominated and selected 
        by the other Directors on the Board.
    This section outlines the nomination and appointment 
processes for both before and after the date of transfer. 
Before the date of transfer, each nomination panel submits to 
the Secretary a list, chosen by consensus, of four qualified 
individuals nominated to be Directors. The Secretary is 
required, no later than 30 days after the last nomination list 
submission, to appoint two individuals to be Directors, and 
select the appropriate number of individuals to be Directors 
from each list submitted by the nomination panels. After the 
date of transfer, the lists of four qualified individuals 
nominated to be Directors is submitted to the Board of 
Directors for selection. The Secretary continues the 
appointment of two Directors as needed to fill vacant seats.
    The section also outlines multiple other duties of the 
Board; establishes the authority, terms, requirements, and 
certain processes of the Board; and outlines the reporting 
requirements and accountability of the Corporation.
    Lastly, this section directs that each Director will serve 
terms that are four years in duration and imposes a term 
limitation eight years.
            Section 90307. Fiduciary duties and qualifications of 
                    Directors
    This section outlines the qualifications necessary to serve 
on the Board and establishes the fiduciary duties of a Director 
to be solely and exclusively to the Corporation and not to the 
Nomination Panels, nor the stakeholder groups that nominated 
them. Directors must be United States citizens and may not be a 
government employee, employee of a union, or employee of a 
business that is a user of the Corporation's services or has a 
material interest in the Corporation. It also includes a 
private right of action for the Corporation in the event of 
breach of a Director's fiduciary duty.
            Section 90308. Bylaws and Duties
    This section outlines the required bylaws of the 
Corporation and the duties and responsibilities of the Board 
including:
          --Adoption of an annual budget;
          --Approval of a strategic plan and updates to that 
        plan;
          --Authorization for issuance of indebtedness;
          --Assessment, modification, and collection of air 
        traffic services charges and fees;
          --Hiring and supervision of the CEO;
          --Establishment and maintenance of an appropriately 
        funded reserve fund;
          --Establishment of a process to ensure the fiduciary 
        duty of a Director is solely and exclusively to the 
        Corporation;
          --Establishment of a process to remove a Director; 
        and
          --Adoption of a process for filling vacancies on the 
        Board.
            Section 90309. Committees of Board; independent auditors
    This section requires the Board of Directors to establish a 
Safety Committee, a Compensation Committee, a Technology 
Committee, and any other committee the Board deems necessary or 
appropriate to carry out the Corporation's responsibilities. It 
requires that the Corporation retain independent auditors to 
review financial statements and internal controls.
            Section 90310. Advisory Board
    This section establishes an Advisory Board to provide 
policy advice to the Board of Directors and gives the Advisory 
Board the authority to submit recommendations for independent 
Directors. The Advisory Board will include not more than 15 
members, including representatives of air carriers; GA; 
business aviation; commercial service airports; operators and 
manufacturers of commercial unmanned aircraft systems; 
appropriate labor organizations; DOD; and small communities, 
including those served by nonhub airports.
            Section 90311. Officers and their responsibilities
    This section requires the Board of Directors to select and 
hire a CEO, establishes the CEO's duties and scope of 
authority, and authorizes an interim CEO position to serve 
prior to the date of transfer and until the Board of Directors 
hires a CEO. It also sets forth the process for the CEO to 
appoint a Chief Operating Officer and a Chief Financial Officer 
subject to the approval of the Board.
            Section 90312. Authority of Corporation
    This section outlines the general corporate powers of the 
Corporation, including the ability to enter contracts, acquire 
property, indemnify employees, and be a party to lawsuits. The 
section also prohibits the Corporation from selling or issuing 
equity shares in the Corporation.
            Section 90313. Charges and fees for air traffic services
    This section allows the Corporation to assess and collect 
charges and fees from certain categories of air traffic service 
users beginning on the date of transfer. It also outlines the 
duties of the Board to approve air traffic charges and fees. 
The section establishes processes for providing air traffic 
services users notice of any changes in fees or charges. The 
section additionally requires the Corporation to publish an 
initial fee schedule at least 180 days before the date of 
transfer that must be approved by the Secretary. Increases in 
charges or fees also require Secretarial approval and must be 
submitted at least 90 days before the effective date. Further, 
the section establishes criteria for Secretarial reviews 
including consistency with the United States' international 
obligations, ICAO Policies on Charges for Air Navigation 
Services (Ninth Edition), non-discrimination, safety 
considerations, and the Corporation's financial requirements. 
Additionally, it prohibits charges and fees on public aircraft 
operations, including those operated by the armed services, and 
GA operations. The sections sets forth that users will incur an 
obligation to pay fees upon the rendering of air traffic 
services by the Corporation, allowing the Corporation to file 
suit to collect delinquent fees, and assess penalties and 
interest for delinquent payment.
            Section 90314. Preemption of authority over air traffic 
                    services
    This section preempts the application of state, local, and 
tribal law to ATC services.
            Section 90315. Actions by and against Corporation
    This section gives federal courts, rather than state or 
local courts, original jurisdiction over any lawsuit by or 
against the Corporation. This limits the ability of Corporation 
employees to provide expert testimony or expert opinion in 
certain circumstances.
            Section 90316. Transfer of federal personnel to Corporation
    This section establishes the processes and procedures for 
transferring federal employees to the Corporation. It is the 
intent of the Committee that employees who transfer from the 
FAA to the Corporation be guaranteed a continuation of their 
pay, benefits, and working conditions, unless and until they 
transfer into new programs that may be established or developed 
by the Corporation after meeting its bargaining obligations 
with the exclusive representatives of the employees of the 
Corporation.
    The process of determining which employees, categories of 
employees and activities that will be transferred to 
Corporation must be completed 180 days prior to the date of 
transfer. In order to ensure that the Secretary's assessments 
and determinations are thoroughly informed, the Secretary is 
directed to consult with the relevant labor organizations that 
have first-hand knowledge of the operational needs of air 
traffic services. It is also essential that the Secretary 
consult with the CEO who is ultimately responsible for 
Corporation's management and performance after the date of 
transfer. Towards that end, Section 90316 requires the FAA, the 
Corporation, and labor organizations representing their 
employees to be proactive to resolve all transition issues in 
an expeditious manner.
    Within 180 days of enactment, the Secretary is required to 
meet and confer with the Corporation and current labor 
organizations to determine which activities and categories of 
employees should be transferred to the Corporation. Similarly, 
during the transition to the new Corporation, Section 90316 
requires the parties to engage in negotiations and reach either 
bipartite or tripartite agreements, as appropriate, to ensure 
that their collective bargaining agreements and the other 
working conditions that apply to FAA employees are jointly 
updated to reflect that the Corporation is not a Federal entity 
and the employees working for the Corporation are no longer 
Federal employees. The parties also should be proactive in 
resolving transition issues related to the separation of air 
traffic services from the FAA, including, but not limited to: 
Air Traffic Safety Action Plan (ATSAP), Fatigue Risk 
Management, Professional Standards, technology development, 
approval, testing, training, and implementation.
    The parties are encouraged to work collaboratively to 
resolve all issues related to the transition and the workforce, 
and to implement the dispute resolution procedures on a timely 
basis should they be unable to reach agreement.
    As part of the transition process, the Committee 
anticipates that the Secretary, the CEO, or both, may revisit a 
determination to transfer employees to the Corporation or to 
retain them at the FAA should be revisited. It is important 
that flexibility exist during the initial phase of the 
Corporation's existence to ensure the proper allocation of 
functions, activities, resources and personnel. Therefore, this 
section provides for a process during the first 180 days 
following the date of transfer, by which employees may be 
transferred to Corporation from the FAA or vice versa if the 
Secretary determines that the placement of the employee was 
inconsistent with the purposes of the subtitle. The section 
also includes protections of employment rights and benefits for 
employees transferred between Corporation and the FAA. These 
protections extend to personnel whom the Secretary decides to 
retain within the FAA. The inclusion of these persons is 
intended to ensure that their rights are protected throughout 
the transition.
    Section 90316 includes other provisions to aid in a smooth 
transfer of employees to Corporation. FAA air traffic 
controllers and other key personnel work in restricted access 
environments that are owned or leased by the federal 
government. They are required to have specialized clearances, 
determinations of suitability, and medical qualifications in 
order to perform their duties. Therefore, in order to ensure a 
seamless transition and to mitigate any latent risks of lapses 
in credentialing, this section ensures the ongoing validity of 
all required credentials, certificates, clearances, and any 
other permissions or approvals necessary for employees 
transferred to Corporation to continue their work on the date 
of transfer and beyond. Such ``grandfathered'' credentials 
shall remain valid until equivalent or substantially equivalent 
credentials may be issued. However, the federal government may 
revoke any credential for cause.
            Section 90317. Transfer of facilities to Corporation
    This section sets forth a process by which the Secretary 
must identify and transfer assets necessary to carry out air 
traffic services to the Corporation without charge. The section 
requires that the Corporation use proceeds from the sale of any 
assets received from the government to acquire or improve new 
air navigation facilities or other assets. It requires 
maintenance by the Corporation of equipment that is located in 
a noncontiguous state of the United States that is determined 
necessary to the Corporation. It also establishes a moratorium 
on consolidation or realignment of air traffic services 
facilities until requisite processes are established, and 
directs the Corporation to establish a process for the 
consolidation or realignment of facilities, in consultation 
with labor, six months before the date of transfer.
            Section 90318. Approval of transferred air navigation 
                    facilities and other equipment
    This section authorizes the Corporation to operate air 
navigation facilities and other assets received from the FAA 
without separate certification or approval.
            Section 90319. Use of spectrum systems and data
    This section directs the Secretary to provide the 
Corporation with access to the spectrum systems (and any 
successor systems) and any data from those systems, that the 
FAA had been using before the date of transfer to provide air 
traffic services.
            Section 90320. Transition plan
    This section requires the Secretary, after conferring with 
the CEO of the Corporation, to establish a transition team 
whose purpose is to develop a transition plan consistent with 
this subtitle, to be reviewed by the Secretary, and if 
approved, utilized by DOT during the transition period of air 
traffic services from FAA to the Corporation.

Chapter 905--Regulation of Air Traffic Services Provider

    Section 211 of the bill also adds a new chapter 905 of 
title 49, United States Code, by adding the following new 
sections:
            Section 90501. Safety oversight and regulation of 
                    Corporation
    This section directs DOT to conduct safety oversight of the 
Corporation, including the issuance of performance-based 
regulations and minimum safety standards for the operation of 
air traffic services as well as for the certification and 
operation of air navigation facilities. It directs DOT to 
identify the policies and administrative materials of the FAA 
for providing air traffic services before the date of transfer 
that will apply to the Corporation after the date of transfer. 
The section requires the Corporation to submit any proposals to 
change airspace or traffic management procedures to DOT, who 
must approve, disapprove, or modify such proposals on an 
expedited basis. Additionally, it allows the Secretary to 
delegate safety oversight functions to the Administrator. 
Lastly, the section brings oversight of the Corporation in line 
with the rest of the aviation industry.
            Section 90502. Resolution of disputes concerning air 
                    traffic services charges and fees
    This section establishes a dispute resolution mechanism for 
fees assessed to users. It requires that the Secretary 
establish a process for the handling of complaints and make 
determinations of correctness of fees.
            Section 90503. International agreements and activities
    This section requires that the Corporation provide air 
traffic services in a manner consistent with the United States' 
sovereign obligations under various international agreements or 
applicable foreign laws. The section also clarifies that the 
Corporation cannot represent or negotiate on behalf of the 
United States before any foreign government or international 
organization.
            Section 90504. Availability of safety information
    This section requires that the Corporation provide users 
with the same safety information provided to users by the FAA 
before the date of transfer, as well as any additional safety 
information necessary for safe use of air traffic services. The 
section also permits the Corporation to provide weather 
information and maps used by flight crews.
            Section 90505. Reporting of safety violations to FAA
    This section requires the Corporation to report possible 
safety violations it observes to the FAA, and assist the FAA in 
any related enforcement action.
            Section 90506. Insurance requirements
    This section requires that the Corporation obtain insurance 
policies and coverages sufficient to cover the anticipated 
liability risks of its operations, including indemnification of 
employees acting within their scope of employment to protect 
them against legal actions that may be brought against them in 
their individual capacity.

Chapter 907--General Rights of Access to Airspace, Airports, and Air 
        Traffic Services Vital to Ensuring Safe Operations for All 
        Users

    Section 211 of the bill adds a new chapter 907 of title 49, 
United States Code, by adding the following new sections:
            Section 90701. Access to airspace
    This section directs the Secretary to ensure that no user 
is denied access to airspace on the basis of the user being 
exempt from charges and fees, pursuant to section 90313.
            Section 90702. Access to airports
    This section requires the Secretary to establish a 
determination, with respect to carrying out section 
90501(c)(3), on whether a proposal would materially reduce 
access to a public use airport, which includes GA airports or 
rural airports.
            Section 90703. Contract tower service after date of 
                    transfer
    This section directs the Secretary to take necessary 
actions to ensure the Corporation meets all contractual 
obligations of FAA contract towers that were in operation 
before the date of transfer. This section also outlines special 
rules governing the proposed closure of air traffic control 
towers that participated in FAA Contract Tower Program before 
the date of transfer when the proposed closure would result in 
an airspace change or reclassification. It also includes a 
process for meaningful analysis of potential impacts of such a 
closure and community involvement. The section outlines the 
impacts that must be analyzed by the Corporation as part of the 
review process.
    Existing contracts between contract tower operators and the 
FAA began on July 1, 2015, and continue for five years. The 
Committee is aware that current contracts may expire during the 
transition period to the Corporation. Given the importance of 
contract towers to over 250 smaller airports in rural America 
and major metropolitan areas, it is clear that the Contract 
Tower Program should continue without interruption during the 
transition period. As validated by the DOT IG, the Contract 
Tower Program is cost effective, saving the FAA and taxpayers 
millions of dollars each year. It plays a major role in the 
Nation's air transportation system, handling approximately 30 
percent of all tower aircraft operations in the United States, 
including almost half of all military operations at civilian 
airports. The Committee believes that FAA and the Corporation 
should consider the merits of renewing the current contracts 
that may expire during the transition period to ensure complete 
continuity of air service and access for all airspace users.
    Nothing in this section should be construed to limit the 
ability of the Corporation to convert a former FAA contract 
tower into the post-transfer equivalent of an FAA Air Traffic 
Control Tower in order to provide better air traffic services 
at an airport.
            Section 90704. Availability of safety information to 
                    general aviation operators
    This section requires the Corporation, in carrying out 
section 90504, to disclose all safety information to air 
traffic services users, including GA operators and the public.
            Section 90705. Special rules and appeals process for air 
                    traffic management procedures, assignments, and 
                    classifications of airspace
    This section sets forth special rules and decisional 
standards for the Secretary when reviewing a proposal by the 
Corporation to modify, reduce, decommission, or eliminate an 
air traffic service or navigation facility that would hinder 
access to a public-use airport or airspace for any class, 
category, or type of aircraft in operation. It outlines the 
judicial review process for such determinations.
            Section 90706. Definitions
    This section provides a number of definitions for this 
chapter.

Chapter 909--Continuity of Air Traffic Services to DOD and Other Public 
        Agencies

    Section 211 of the bill adds a new chapter 909 of title 49, 
United States Code, by adding the following new sections:
            Section 90901. Continuity of air traffic services provided 
                    by DOD
    As directed by the President, this section permits the DOD 
to provide air traffic services within United States airspace 
and international airspace delegated to the United States after 
the date of transfer.
            Section 90902. Military and other public aircraft exempt 
                    from user fees
    This section prohibits the Corporation from imposing any 
charges or fees on aircraft owned or operated by the Armed 
Forces and other public aircraft.
            Section 90903. Air traffic services for federal agencies
    This section requires the Secretary to establish processes 
ensuring that the Corporation supports all activities of the 
United States government supported by FAA before the date of 
transfer and on an ongoing basis thereafter.
            Section 90904. Emergency powers of armed forces
    This section clarifies that the safety oversight 
requirements outlined in section 90501 do not apply to airspace 
actions authorized under section 40106 of title 49, United 
States Code.
            Section 90905. Adherence to international agreements 
                    related to operations of armed forces
    This section requires the Corporation, in carrying out 
section 90503, to ensure that all obligations described in that 
section include obligations related to the operations of the 
Armed Forces.
            Section 90906. Primacy of armed forced in times of war
    This section allows for the temporary transfer of a duty, 
power, activity, or facility of the Administrator or the 
Corporation to DOD by the President during war.
            Section 90907. Cooperation with DOD and other federal 
                    agencies after date of transfer
    This section requires the Corporation, DOT, and all federal 
agencies supported by the FAA's operation of air traffic 
services enter into a tripartite agreement to ensure 
cooperation between the entities, facilitate the safe provision 
of services, and address coordination and communication of day-
to-day operations after the date of transfer.

Chapter 911--Employee Management

    Section 211 of the bill also adds a new chapter 911 of 
title 49, United States Code, by adding the following new 
sections:
            Section 91101. Definitions
    This section sets forth certain definitions relating to 
employee management.
            Section 91102. Employee management and benefits election
    This section establishes the CEO's authority to set wages, 
hours, and other terms of employment just like other private 
entities throughout the Nation. It ensures that employees 
initially transferred from the federal government to the 
Corporation are kept whole in terms of their benefits by 
allowing them to elect whether to retain federal benefits or 
opt for comparable benefits offered by the Corporation. To do 
so, the section substitutes the Corporation for the government, 
to ensure the government's employer obligations are transferred 
to the Corporation. This section also extends several important 
laws, including whistleblower safeguards, to the Corporation 
and its employees.
            Section 91103. Labor and employment policy
    This section applies much of the Federal Service Labor-
Management Relations Statute (FSLMRS) that governs labor-
management relations in the federal government to the 
Corporation and its employees. Primarily, this includes the 
union prohibition on the right to strike and other actions that 
would disrupt the operation of the air traffic control system. 
It preserves air traffic controllers' and other employees' 
existing right to participate in labor organizations or refrain 
from doing so, if desired, commonly referred to as an ``open 
shop.'' It also continues other laws as applicable to the 
Corporation and its labor organizations to ensure fairness and 
transparency in labor relations and reporting.
            Section 91104. Bargaining units
    This section preserves the existing structure of bargaining 
units to ensure the units are system-wide and not divided 
piecemeal across the country. Further, it clearly prohibits 
supervisors and managers from joining a union.
            Section 91105. Recognition of labor organizations
    This section requires the Corporation to recognize and 
bargain with the labor organizations selected by its employees. 
This section is designed to maintain continuity in labor-
management relations, ensure a smooth transition, and minimize 
the potential for disruption to the employees and the 
Corporation.
    This section also requires the employees and the 
Corporation to comply with the terms of collective-bargaining 
agreements and arbitration awards in effect on the date of 
transfer until such agreements and awards expire or are 
lawfully altered or amended. The Committee understands that 
this will ensure productive labor-management relations and 
seamless ATC service operations throughout the transition.
            Section 91106. Collective-bargaining agreements
    This section establishes certain requirements for 
collective bargaining agreements, including that such 
agreements be effective for no less than two years.
            Section 91107. Collective-bargaining dispute resolution
    This section establishes a process by which the Corporation 
and labor organizations will resolve their disputes arising in 
collective bargaining. The need for finality in the negotiation 
of collective-bargaining agreements between the Corporation and 
its employees is important to all stakeholders. Section 91107 
sets forth a process by which the Corporation and the labor 
organization will resolve disputes arising from negotiation 
impasses for both term collective-bargaining agreements and 
mid-term bargaining.
    The first step of the process for term bargaining or mid-
term bargaining is to negotiate in good faith. After 90 days of 
negotiation, the parties may invoke the mediation services of 
the Federal Mediation and Conciliation Service (FMCS). This 
mediation period shall last 60 days, unless extended by the 
parties. If no resolution is reached through negotiation, 
binding arbitration is invoked. This is where the term 
bargaining and mid-term bargaining differs slightly in process.
    For term bargaining, the binding arbitration is conducted 
by a three-member arbitration board with one arbitrator 
selected by each party, and the third selected by those two 
arbitrators from a list of 15 well-qualified arbitrators (e.g., 
the National Academy of Arbitrators, the American Arbitration 
Association) prepared by the Director of the FMCS. Once 
selected, the arbitration board must hold a hearing, including 
presentations of evidence and witnesses. The arbitration board 
must give proper weight to the evidence and, not later than 90 
days from appointment, issue its decision. The parties must 
share in the costs of arbitration. This section is enforceable 
in United States District Court for the District of Columbia.
    Unlike term bargaining, mid-term bargaining is resolved by 
a single arbitrator, instead of a board. The arbitrator must be 
of national reputation and significant experience, just as is 
required for the arbitration board for term bargaining. The 
selection process for the arbitrator begins with the 
development of a list of ten arbitrators by the FMCS, from 
which each party strikes a name until one is left. The 
arbitrator must hold a hearing and issue a written decision 
within 90 days. This section is also enforceable in United 
States District Court for the District of Columbia.
    Both processes for term and mid-term bargaining will help 
ensure peaceful labor-management relations through a 
prescriptive, conclusive, and binding process. The Committee 
prefers resolution of disputes and impasses through 
negotiations or mutually agreed to terms and processes; 
however, when such negotiations break down, the section 
provides for certainty in the resolution of disputes that will 
ensure the safe, efficient, and continuous provision of air 
traffic control services.
            Section 91108. Potential and pending grievances, 
                    arbitrations, and settlements
    This section transfers existing enforceable grievance 
awards and arbitration awards as obligations of the 
Corporation, and preserves employees' and management's rights 
in such agreements in effect on the date of transfer. Any 
grievances or arbitrations pending on the date of transfer are 
also transferred with the Corporation stepping into the shoes 
of the employer; however, to the extent such proceedings 
require financial or monetary reward, such financial or 
monetary liability remains with the government by operation of 
this section in conjunction with section 91302. The Committee 
does not want to burden the Corporation with financial or 
monetary liability arising from the acts or omissions of the 
federal government. However, where a grievance or arbitration 
award would require the Corporation to change its practices or 
to take actions as the successor to the FAA as an employer, 
such change in practice or action should be required of the 
Corporation. This section permits either party to an 
arbitration award to seek judicial action to vacate such an 
award pursuant to section 91110(a).
            Section 91109. Prohibition on striking and other activities
    This section strictly prohibits employees from engaging in 
strikes, work stoppages, slowdowns, and picketing of the 
Corporation and requires termination of employees who engage in 
such activity. The burden of proof and other standards 
established in Schapansky v. Department of Transportation, 735 
F.2d 477 (Fed. Cir. 1984) and its progeny shall apply to any 
resolution of disputes arising under this section.
            Section 91110. Legal action
    To ensure uniformity in legal actions and precedent across 
the country, given the national make-up of air traffic control 
services, this section establishes the jurisdiction of federal 
district courts to hear cases brought to enforce or vacate 
arbitration awards. It also establishes federal court 
jurisdiction for actions by and against labor organizations 
under this bill. In conjunction with section 90315, the federal 
courts shall have jurisdiction over all actions by and against 
the Corporation and all labor-related actions. Keeping the 
jurisdiction in the federal courts will ensure consistency by 
preventing state laws and courts from being invoked which would 
result in piecemeal and possibly inconsistent legal decisions. 
Furthermore, federal courts already have the requisite 
experience with regard to the federal labor statutes and 
processes involved in this chapter, and, therefore, are best 
equipped to continue interpreting and applying them.

Chapter 913--Other Matters

    Section 211 of the bill also adds a new chapter 913 of 
title 49, United States Code, by adding the following new 
sections:
            Section 91301. Termination of government functions
    This section clarifies that any activity vested in law in 
the Secretary, Administrator, DOT, or the FAA that has been 
transferred to the Corporation pursuant to this Act shall cease 
to be a function of the government after the date of transfer.
            Section 91302. Savings provisions
    This section ensures the continued effectiveness of the 
government's pending and completed administrative actions and 
proceedings, including rulemakings, licensing proceedings, 
certain contract obligations, and various applications, until 
they are amended, modified, superseded, terminated, set aside 
or revoked. It also ensures that certain legal claims, based on 
the government's acts or omissions before the date of transfer, 
will continue to be available after the date of transfer. The 
section requires the Corporation to assume air traffic services 
related assets and liabilities from the FAA, and ensures 
certain liabilities, such as torts claims arising from the acts 
of transferred FAA employees, and environmental claims, remain 
with the federal government.

Chapter 915--Congressional Oversight of Air Traffic Services Provider

    Section 211 of the bill also adds a new chapter 915 of 
title 49, United States Code, by adding the following new 
sections:
            Section 91501. Inspector General reports to congress on 
                    transition
    This section requires the DOT IG, up until the date of 
transfer, to submit quarterly reports to Congress on the 
progress of the preparation of the DOT and the Corporation for 
the transfer of operational control of air traffic services.
            Section 91502. State of air traffic services
    This section requires the Corporation, not later than two 
years after the date of transfer, and every two years 
thereafter, to submit a report on the state of air traffic 
services, covering charges and fees, safety, interaction 
between the Corporation and federal agencies, the Corporation's 
compliance with various laws, international treaties/
agreements, and more.
    The Committee has supported the FAA's efforts over the past 
decade to deploy proven, cost effective, commercial off-the-
shelf integrated control and monitoring systems to improve 
safety, efficiency and situational awareness for controllers. 
However, the Committee recognizes that the FAA has been unable 
to deploy cost effective, safe and modern off-the-shelf 
technology that could improve the efficiency and safety of the 
NAS. The transfer of responsibility of providing ATC services 
to the Corporation will enable the new service provider to 
utilize such off-the-shelf technology more quickly should it so 
choose.
            Section 91503. Submission of annual financial report
    Starting not later than one year after the date of 
transfer, this section requires the Corporation to annually 
submit a report on the financial and operational performance 
information of the Corporation during the previous year to the 
Secretary, which will subsequently be submitted to Congress.
            Section 91504. Submission of a strategic plan
    This section requires the Corporation, no later than 15 
days after the initial strategic plan of the Corporation is 
approved by the Board, to submit the strategic plan to the 
Secretary, who shall then submit it to Congress. Also, it 
requires a similar submittal process for any updates to the 
strategic plan.
            Section 91505. Submission of annual action plan
    This section requires the Corporation to develop an annual 
report on the goals of the Corporation for the following year, 
including specific and tangible goals to help expedite the 
improvement of the Corporation as a whole. Not later than one 
year after the date of transfer and on an annual basis 
thereafter, this section requires the Corporation to submit the 
report to the Secretary and the Secretary to submit the report 
to Congress.

            SUBTITLE B--AMENDMENTS TO FEDERAL AVIATION LAWS

Section 221. Definitions

    This section adds the definition of ``American Air 
Navigation Services Corporation'' to section 40102 of title 49, 
United States Code.

Section 222. Sunset of FAA air traffic entities and officers

    This section sunsets the FAA's Air Traffic Services 
Committee, the Air Traffic Organization Chief Operating Officer 
position, and the Chief NextGen Officer position on the date of 
transfer, and amends the authorities of the FAA's Management 
Advisory Council and Aircraft Noise Ombudsman to reflect the 
separation of air traffic services.

Section 223. Role of administrator

    This section clarifies that while the Corporation may 
conceive of and design changes to the airspace after the date 
of transfer as part of its provision of air traffic services, 
the FAA will continue prescribing regulations relating to the 
safe operation of aircraft, and will ensure equitable access to 
and use of airspace.

Section 224. Emergency powers

    This section requires appropriate military authorities to 
inform the Corporation as early as possible if military 
aircraft will deviate from safety regulations due to an 
emergency or urgent military necessity.

Section 225. Presidential transfers in time of war

    This section provides the President the same authority 
related to the Corporation as the President has related to the 
FAA if war should occur. It also clarifies that if war occurs, 
the President would have the power to temporarily transfer to 
the Secretary of Defense an activity or facility of the 
Corporation (or of the FAA).

Section 226. Airway Capital Investment Plan before date of transfer

    This section terminates the requirement that the 
Administrator produce an annual Airway Capital Investment Plan 
following the date of transfer. After the date of transfer, the 
Corporation will be responsible for such investment planning 
and will be required to provide an annual report containing 
financial and operational performance information and to retain 
independent auditors to conduct annual audits of the 
Corporation's financial statements and internal controls.

Section 227. Aviation facilities before date of transfer

    This section sunsets certain authorities of the 
Administrator relating to the purchase and maintenance of air 
navigation facilities on the date of transfer. Such activities 
will be conducted by the Corporation after the date of 
transfer. The section adds the Corporation to a list of 
entities that must be consulted before the establishment of 
military aviation facilities to ensure conformity with plans 
and policies regarding airspace.

Section 228. Judicial review

    This section amends existing law by allowing a person 
disclosing a substantial interest in an order issued by the 
Secretary or the Administrator with respect to aviation duties 
and powers designated to be carried out by the Administrator to 
apply for judicial review of the order.

Section 229. Civil penalties

    This section amends existing law to add section 90501 to 
the list of sections to which a civil penalty may be imposed. 
It also allows the Secretary to impose a civil penalty of not 
more than $25,000 for violations of 90501.

                       SUBTITLE C--OTHER MATTERS

Section 241. Use of federal technical facilities

    This section ensures the ongoing availability of the FAA's 
research facilities to the Corporation.

Section 242. Ensuring progress on NextGen priorities before date of 
        transfer

    This section directs the Administrator, in consultation 
with the NextGen Advisory Committee, to prioritize the 
implementation of the following programs: Multiple Runway 
Operations; Performance-Based Navigation; Surface Operations 
and Data Training; and Data Communications. The section also 
directs the Administrator to establish near-term NextGen goals 
and amends existing law to require a NextGen metrics report to 
be included as part of the annual report required under the 
law.

Section 243. Severability

    The section serves as the severability clause for the title 
in the event one or more parts of the title are found to be 
invalid.

Section 244. Prohibition on the receipt of federal funds

    The section prohibits the Corporation from accepting or 
receiving any of the uncommitted balance of the Airport and 
Airway Trust Fund.

               Title III--FAA Safety Certification Reform

                     SUBTITLE A--GENERAL PROVISIONS

Section 301. Definitions

    This section sets forth definitions applicable to this 
title.

Section 302. Safety Oversight and Certification Advisory Committee

    This section establishes the Safety Oversight and 
Certification Advisory Committee (SOCAC), comprised of industry 
stakeholders, including GA, commercial aviation, aviation 
labor, aviation maintenance, and more, and the Administrator. 
The SOCAC is responsible for providing advice to the Secretary 
on policy level issues related to FAA safety certification and 
oversight programs and activities, and establishing consensus 
national goals, strategic objectives and priorities to achieve 
the most efficient, streamlined and cost-effective 
certification and oversight processes. The SOCAC sunsets after 
six years.

               SUBTITLE B--AIRCRAFT CERTIFICATION REFORM

Section 311. Aircraft certification performance objectives and metrics

    This section directs the Administrator to work with the 
SOCAC to establish performance objectives for the FAA and the 
aviation industry related to aircraft certification, and apply 
and track performance metrics for both FAA and aviation 
industry. These performance objectives for aircraft 
certification shall ensure that progress is being made in 
eliminating delays, increasing accountability, and achieving 
full utilization of delegation, while maintaining leadership of 
the United States in international aviation. The data for the 
metrics will be publicly available on the FAA's website.

Section 312. Organization designation authorizations

    This section amends existing law by requiring that when 
overseeing an organization designation authorization (ODA) 
holder, the Administrator must require a procedures manual that 
addresses all procedures and limitations regarding the ODA's 
functions to ensure that such functions are delegated fully to 
the ODA (unless there is a safety or public interest reason to 
not delegate functions). This section establishes a centralized 
ODA policy office within the FAA's Office of Aviation Safety to 
oversee and ensure the consistency of audit functions under the 
ODA program across the FAA.

Section 313. ODA review

    This section establishes a multidisciplinary expert review 
panel consisting of members appointed by the Administrator to 
conduct a survey of ODA holders and applicants to obtain 
feedback on the FAA's efforts involving the ODA program and 
make recommendations to improve the FAA's ODA-related 
activities. Within six months of the Panel convening, they will 
submit a report to the FAA and relevant congressional 
committees on any findings and recommendations.

Section 314. Type certification resolution process

    This section requires the Administrator to establish a type 
certification resolution process, in which the certificate 
applicant and FAA will establish for each project specific 
certification milestones and timeframes for those milestones. 
If the milestones are not met within the specific timeframe, 
the milestone will be automatically elevated to the appropriate 
management levels of both the applicant and FAA and resolved 
within a specific period of time.

Section 315. Safety enhancing equipment and systems for small general 
        aviation airplanes

    This section requires, within 180 days of enactment, that 
the Administrator establish and begin implementation of a risk-
based policy that streamlines the installation of safety 
enhancing technologies for small GA aircraft so that the safety 
benefits of such technologies for small GA aircraft can be 
realized.

Section 316. Review of certification process for small general aviation 
        airplanes

    The section directs the DOT IG to review the final rule 
titled ``Revision of Airworthiness Standards for Normal, 
Utility, Acrobatic and Commuter Category Airplanes.'' In this 
review, the DOT IG will assess how the rule puts into practice 
the FAA's efforts to implement performance based safety 
standards, if the rule has improved safety and reduced 
regulatory cost burden and lessons learned.

                  SUBTITLE C--FLIGHT STANDARDS REFORM

Section 331. Flight standards performance objectives and metrics

    The section directs the Administrator, in collaboration 
with the SOCAC established in section 302, to establish 
performance objectives and to apply and track metrics for the 
FAA and aviation industry relating to flight standards 
activities, and achieving national goals established by the 
Advisory Committee.

Section 332. FAA Task Force on Flight Standards Reform

    This section directs the FAA to establish an FAA Task Force 
on Flight Standards Reform (Task Force). The Task Force will be 
comprised of 20 industry experts and stakeholders, and be 
responsible for identifying best practices and providing 
recommendations for simplifying and streamlining flight 
standards processes, training for aviation safety inspectors, 
and to achieve consistency in FAA regulatory interpretations 
and oversight.

Section 333. Centralized Safety Guidance Database

    The section directs the Administrator to establish a 
Central Safety Guidance Database that will include all 
regulatory guidance documents of the FAA Office of Aviation 
Safety within one year of enactment, and make the database 
available to the public.

Section 334. Regulatory Consistency Communications Board

    This section requires the Administrator to establish a 
Regional Consistency Communications Board that will be composed 
of FAA representatives from Flight Standards Service, Aircraft 
Certification Service and Office of the Chief Counsel. The 
Board will be responsible for establishing a process by which 
FAA personnel as well as regulated entities may submit 
regulatory interpretation questions anonymously without fear of 
retaliation. The SOCAC will establish performance metrics for 
both industry and the FAA in regard to the actions of the 
Board.

                      SUBTITLE D--SAFETY WORKFORCE

Section 341. Safety workforce training strategy

    This section directs the FAA to establish a safety 
workforce training strategy that addresses a number of goals. 
These goals include allowing employees participating in 
organization management teams or ODA program audits to complete 
appropriate training in auditing, identifying a systems safety 
approach to oversight, and seeking knowledge-sharing 
opportunities between the FAA and aviation industry.

Section 342. Workforce review

    This section directs the Comptroller General of the United 
States to conduct a study to assess the workforce and training 
needs of the FAA's Office of Aviation Safety. This study will 
look at current hiring and training requirements for inspectors 
and engineers, and analyze the skills and qualifications of 
safety inspectors and engineers.

                   SUBTITLE E--INTERNATIONAL AVIATION

Section 351. Promotion of United States aerospace standards, products, 
        and services abroad

    This section directs the Administrator to take appropriate 
actions to promote United States aerospace standards abroad, to 
defend approvals of United States aerospace products and 
services abroad and to utilize bilateral safety agreements to 
improve validation of United States certified products.

Section 352. Bilateral exchanges of safety oversight responsibilities

    This section grants the Administrator the ability to accept 
an airworthiness directive necessary to provide for safe 
operation of aircraft issued by the aeronautical authority of a 
foreign country and leverage their regulatory process, if 
certain criteria are met. The section also allows for an 
alternative approval process and alternative means of 
compliance under certain circumstances.

Section 353. FAA leadership abroad

    The section directs the Administrator to promote United 
States aerospace safety standards abroad and to work with 
foreign governments to facilitate the acceptance of FAA 
approvals and standards internationally. The Administrator is 
directed to further assist American companies who have 
experienced significantly long foreign validation wait times 
and work with foreign governments to improve the timeliness of 
their acceptance of FAA validations and approvals. This section 
requires FAA to track and analyze the amount of time it takes 
foreign authorities to validate certificated aeronautical 
product types certified in the United States and establish 
benchmarks and metrics to reduce the validation times.

Section 354. Registration, certification, and related fees

    This section amends existing law by allowing the 
Administrator to establish and collect a fee from a foreign 
government or entity for certification services if the fee is 
consistent with aviation safety agreements and does not exceed 
the cost of the services.

                            Title IV--Safety

                     SUBTITLE A--GENERAL PROVISIONS

Section 401. FAA technical training

    Within 90 days of enactment, this section requires the 
Administrator to establish an e-learning training pilot program 
to provide technical training for FAA personnel on the latest 
aviation technologies, processes, and procedures. The section 
terminates the pilot program one year after establishment. 
After elimination of the pilot program, the FAA will establish 
a permanent e-Learning program that utilizes lessons learned 
from the pilot.

Section 402. Safety critical staffing

    This section directs the Administrator to update the FAA's 
safety critical staffing model within 270 days of the date of 
enactment and at least two years before the date of transfer. 
This section requires the DOT IG to conduct a study of the 
staffing model used by the FAA to determine the number of 
aviation safety inspectors that are needed to fulfill the 
mission of the FAA and adequately ensure aviation safety. 
Lastly, this section requires reports on the audit to both the 
Secretary and to Congress.

Section 403. International efforts regarding tracking of civil aircraft

    This section directs the Administrator to exercise 
leadership on creating a global approach to improve aircraft 
tracking by working with foreign counterparts in the ICAO, 
other international organizations, and the private sector.

Section 404. Aircraft data access and retrieval systems

    This section requires the FAA to initiate a study of 
aircraft data access and retrieval technologies for Part 121 
commercial aircraft used in extended overwater operations to 
determine if such technologies provide improved access and 
retrieval of the data in the event of an accident. A report to 
Congress is required not later than one year after initiation 
of the study.

Section 405. Advanced cockpit displays

    This section requires the FAA to review heads-up display 
systems, heads-down display systems employing synthetic vision 
systems, and enhanced vision systems and the impacts of single 
and dual installed heads-up systems within 180 days of 
enactment. A report to Congress is required no later than one 
year after enactment.

Section 406. Marking of towers

    This section includes a technical correction to section 
2110 of the FAA Extension, Safety and Security Act of 2016 to 
clarify that the term ``covered towers'' does not include 
towers located within the right-of-way of a rail carrier, 
including within the boundaries of a rail yard, and are used 
for railroad purposes. Furthermore, to ensure safety while 
providing flexibility to covered tower operators, section 2110 
is revised to allow covered tower operators or owners to either 
submit the tower's information into the database established in 
the section or mark the tower according to FAA marking 
requirements. This option does not apply to Meterological 
Evaluations Towers, which must be both marked in accordance 
with FAA marking requirements and entered into the database.

Section 407. Cabin evacuation

    This section requires the FAA, in consultation with 
National Transportation Safety Board and appropriate 
stakeholders, to review evacuation certification of transport 
category aircraft, including emergency conditions, crew 
procedures, relevant changes to passenger demographics, legal 
requirements that affect emergency evacuations, and recent 
accidents and incidents where passengers had to evacuate. The 
section also requires, not later than one year after the date 
of enactment, a report to be submitted to Congress on the 
results of the review and any associated recommendations.

Section 408. ODA staffing and oversight

    This section directs the Administrator to report to 
Congress no later than 270 days after enactment on its progress 
in implementing specific DOT IG recommendations regarding the 
FAA's staffing and oversight of ODA prior to the date of 
transfer. The section requires the report to contain the FAA's 
progress with respect to ensuring full ODA utilization 
authority prior to and after the date of transfer.

Section 409. Funding for additional safety needs

    This section allows the Administrator to accept funds from 
an applicant for a certificate in order to hire additional 
support staff or to obtain the services of consultants and 
experts to help streamline the review and issuance of 
certificates. This section outlines other policies and 
procedures to be implemented by the Administrator to ensure 
that the acceptance of funds does not prejudice the 
Administrator in the issuance of any certificate. The section 
contains a clause requiring that any funds accepted under the 
section shall be credited as offsetting collections.

Section 410. Funding for additional FAA licensing needs

    This section allows the Secretary to accept funds from a 
person applying for a license or permit in order to hire 
additional staff or to obtain the services of consultants or 
experts to help streamline the issuances of licenses or 
permits. It outlines policies and procedures to be implemented 
by the Secretary and contains a clause requiring that any funds 
accepted under the section shall be credited as offsetting 
collections.

Section 411. Emergency medical equipment on passenger aircraft

    This section directs the Administrator to evaluate and 
revise existing regulations on emergency medical equipment, and 
consider whether the minimum contents of approved medical kits 
on passenger aircraft meet the emergency needs of children.

Section 412. HIMS program

    This section authorizes the existing human intervention 
motivation study (HIMS) program for flight crewmembers employed 
by commercial air carriers operating in the United States.

Section 413. Acceptance of voluntarily provided safety information

    This section requires the FAA to automatically accept 
voluntary disclosures submitted under the Aviation Safety 
Action Program into the program even if they have not undergone 
a review by the event review committee. This requires a 
disclaimer be attached to the disclosure that states the 
disclosure has not gone through an event review committee. If 
the event review committee determines that the disclosure fails 
to meet criteria for acceptance, the disclosure will be 
rejected from the program.

Section 414. Flight attendant duty period limitations and rest 
        requirements

    This section directs the Administrator to revise the final 
rule issued on August 19, 1994, related to flight attendant 
duty period limitations and rest requirements. The revised rule 
must ensure that a flight attendant has at least a scheduled 
rest period of 10 consecutive hours, and that the rest period 
cannot be reduced under any circumstances. This section 
requires, within 90 days after enactment, all Part 121 air 
carriers to submit to the Administrator a fatigue risk 
management plan. The Administrator is required to review and 
accept or reject the fatigue risk management plan for each Part 
121 carrier. If the Administrator rejects a plan, the 
Administrator must provide modifications needed for the 
resubmission of the plan. Part 121 air carriers must update 
their fatigue risk management plans every two years and 
resubmit them to the Administrator. If a Part 121 air carrier 
violates this subsection, it shall be subject to civil 
penalties.

Section 415. Secondary cockpit barriers

    This section requires, not later than one year after the 
date of enactment, the Administrator to issue an order 
requiring the installation of a secondary cockpit barrier on 
all new passenger air carrier aircraft.

Section 416. Aviation maintenance industry technical workforce

    This section requires the Comptroller General to conduct a 
study and issue recommendations on aviation workforce data and 
workforce needs in the aviation maintenance sector. It also 
requires a report to Congress no later than one year after the 
date of enactment.

Section 417. Critical airfield markings

    This section requires a study on the durability of and use 
of Type III and Type I retroflective glass beads on airport 
runways.

                 SUBTITLE B--UNMANNED AIRCRAFT SYSTEMS

Section 431. Definitions

    This section sets forth definitions applicable to this 
subtitle.

Section 432. Codification of existing law; additional provisions

    This section amends existing law by inserting a new Chapter 
455, ``Unmanned Aircraft Systems'' (UAS) in order to codify 
UAS-related provisions included in the FAA Modernization and 
Reform Act of 2012 and to add several new UAS-related 
provisions to the Chapter. Chapter 455 contains the following 
provisions:
            Section 45501. Definitions
    This section codifies definitions from section 331 of the 
FAA Modernization and Reform Act of 2012 and adds new 
definitions for terms used in this chapter.
            Section 45502. Integration of civil UAS into national 
                    airspace system
    This section codifies portions of section 332 of the FAA 
Modernization and Reform Act of 2012 that require the Secretary 
to develop a comprehensive plan and roadmap for UAS 
integration. The provisions also require the Secretary to 
conduct a rulemaking relating to the operation of small UAS 
(sUAS) and to take actions to expand use of UAS in Arctic 
regions.
            Section 45503. Risk-Based permitting of UAS
    This section establishes a new basis for licensing any UAS 
and UAS operations not covered by regulations applicable to the 
operation of sUAS. This section sets forth permitting standards 
and certain criteria that the Administrator must consider in 
assessing applications, and provides the FAA with flexibility 
to waive certain statutory requirements if the operations will 
occur away from congested areas. The permits issued under this 
section will have a validity of five years. Further, 
applications for UAS operations related to disaster recovery 
and emergency preparedness would be handled on an expedited 
basis.
            Section 45504. Public UAS
    This section codifies section 334 of the FAA Modernization 
and Reform Act of 2012, which directs the Secretary to take 
steps to facilitate operations of UAS by government entities.
            Section 45505. Special rules for certain UAS
    This section codifies section 333 of the FAA Modernization 
and Reform Act of 2012, which directs the Secretary to 
determine if certain UAS may operate in the NAS. Assessment of 
the UAS operations will determine which types of UAS do not 
create a hazard to users of the NAS or to national security, 
and will determine whether a certificate of waiver or 
authorization of airworthiness is required. If the Secretary 
determines certain UAS may operate safely in the NAS, the 
Secretary shall establish requirements for the safe operation 
of such systems.
            Section 45506. Certification of new air navigation 
                    facilities for unmanned aircraft and other aircraft
    This section establishes a rulemaking process to develop 
standards for unmanned aircraft traffic management system (UTM) 
and other communication, navigation, and surveillance systems 
for low altitude airspace including expedited procedures to 
authorize operations posing very low risk. In the long-term, 
the Committee believes that use of UTM should facilitate more 
advanced operations of UAS including beyond visual line of 
sight and nighttime operations on a routine basis. The 
Committee also anticipates that operators could cite UTM use in 
support of applications for waiver from provisions of Part 107, 
title 14 Code of Federal Regulations and other authorizations. 
The Committee believes that the final rule promulgated pursuant 
to this section will, in the long-run, result in comprehensive 
authorizations for the use of UTM in a variety of scenarios. 
The criteria for these rules are intended to facilitate safe 
operation of UAS and interoperability with air traffic control 
and other systems used in the National Airspace.
            Section 44507. Special rules for certain UTM and low 
                    altitude Communication, Navigation, Surveillance
    This section establishes a process for the FAA to approve 
certain UTM and low altitude Communication, Navigation, and 
Surveillance prior to the completion of the rulemaking required 
under section 45506. This section requires the FAA to create 
expedited procedures for approving systems operated in airspace 
above croplands and other areas in which the operation of 
unmanned aircraft pose very low risk. The Committee believes 
that the operators and the FAA could use the authority of 
section 45507 in the near-term to begin use of UTM to enhance 
operations of UAS, such as beyond visual line of sight flights 
and nighttime flights, on a routine basis. The knowledge and 
experience gained under this section will inform, and 
ultimately improve, the FAA's regulatory framework for UTM and 
UAS in the long-term, including the rules required under 
section 45506. Furthermore, the Committee believes that 
advanced operations and uses of UTM should be authorized on an 
expedited basis in airspace above croplands and other such 
areas in which the risks to persons and property is very low. 
Croplands and other agricultural areas are often sparsely 
inhabited or uninhabited expanses of land and the airspace 
above may be ideal for demonstrating the potential of UTM to 
facilitate advanced operations of UAS. The Committee notes 
that, in certain cases, airspace above such lands may be used 
by manned aviation operators. In such cases, the Committee 
expects that the FAA will take any necessary measures to ensure 
aviation safety. The knowledge formed and experience gained in 
authorizing and conducting such operations in these areas will 
enable government and industry to work towards use of UAS and 
UTM in more complex operating environments. The Committee also 
anticipates that operators could cite UTM use in support of 
applications for waiver from provisions of Part 107, title 14 
Code of Federal Regulations and other authorizations.
            Section 45508. Operation of small unmanned aircraft
    This section establishes a streamlined process for the FAA 
to permit the operation of sUAS used for aerial data collection 
prior to the agency's completion of the rulemaking for such 
aircraft. Aerial data collection includes applications such as 
imaging, measurement, and other forms of sensing.
            Section 45509. Special rules for model aircraft
    This section codifies, in part, section 336 of the FAA 
Modernization and Reform Act of 2012, which establishes 
criteria under which an aircraft may be operated as a model 
aircraft under certain conditions. It also allows certain 
qualified not-for-profit organizations to receive payment for 
instruction in the flight of model aircraft. The section 
includes conforming amendments, specifically provisions that 
would allow the FAA to assess civil penalties for violations 
under chapter 455. The section allows the FAA to require 
aircraft registration. The section clarifies that current 
certification processes will remain available pending 
completion of the air carrier rulemaking.
            Section 45510. Carriage of property for compensation or 
                    hire
    This section requires the Secretary to issue a final rule 
authorizing sUAS operators to carry property for compensation 
or hire within the United States. This section requires the 
Administrator to establish the sUAS air carrier certificate, 
establish a streamlined, performance-based, and risk-based 
certification process, and create a sUAS air carrier 
classification, all for the purposes of carriage of property 
for compensation or hire.
            Section 45511. Micro UAS operations
    This section charters an aviation rulemaking committee to 
develop recommendations for regulations under which any person 
may operate a micro unmanned aircraft system. It also requires 
the Secretary to charter the advisory committee no later than 
60 days after the date of enactment. Additionally, it requires 
the Secretary, no later than 180 days after receiving the 
recommendations, to issue regulations regarding the 
recommendations of the rulemaking committee.

Section 433. Unmanned aircraft test ranges

    This section includes several provisions relating to UAS 
test ranges established by the FAA Modernization and Reform Act 
of 2012, and extends the authorization of the test ranges for 
six years. This section directs the Administrator to permit the 
operation of aircraft equipped with sense-and-avoid and beyond 
line of sight technologies at the test ranges and, in 
furtherance of that objective, provides the Administrator the 
ability to waive certain statutory requirements.

Section 434. Sense of Congress regarding unmanned aircraft safety

    This section expresses the concern of Congress about the 
safety risks caused by unauthorized operation of UAS in 
proximity to airports and the safety risks of potential 
collisions between UAS and conventional passenger aircraft. It 
further expresses Congress' sense that the FAA should take 
measures to reduce such risks through enforcement actions and 
educational initiatives.

Section 435. UAS privacy review

    This section directs the Secretary to conduct a study to 
identify potential reductions in privacy caused specifically by 
UAS. It also directs the Secretary to consider the efforts led 
by and consult with the National Telecommunications and 
Information Administration relating to privacy and UAS 
integration. Additionally, the section requires the Secretary 
to submit a report to Congress on the study's findings within 
six months of enactment of this Act.

Section 436. Public UAS operations by tribal governments

    This section allows certain tribal governments to operate 
unmanned aircraft as public aircraft.

Section 437. Evaluation of aircraft registration for small unmanned 
        aircraft

    This section directs the Administrator to develop metrics, 
assess compliance and effectiveness of the agency's Interim 
Final Rule entitled ``Registration and Marking Requirements for 
Small Unmanned Aircraft. (80 Fed. Reg. 78,593). It directs the 
DOT IG to evaluate the Administration's progress in developing 
these metrics and also the reliability, effectiveness and 
efficiency of the program, and provide a report to Congress.

Section 438. Study on roles of governments relating to low-altitude 
        operation of small unmanned aircraft

    This section requires the DOT IG to study and report to 
Congress on the regulation of low-altitude operations of small 
unmanned aircraft and the appropriate roles and 
responsibilities of federal, state, local, and tribal 
governments in regulating such activity. It also requires the 
DOT IG to consider various factors including recommendations of 
the Drone Advisory Committee, the interests of various 
jurisdictions, the interests of industry, and other factors.

Section 439. Study on financing of unmanned aircraft services

    This section requires the Comptroller General to study 
appropriate fee mechanisms to recover the costs of the FAA 
regulation and oversight of unmanned aircraft. It requires the 
Comptroller General to consider a number of factors including 
resources necessary for safe unmanned aircraft operations and 
best practices or policies of other countries. The section 
requires the Comptroller General to report to Congress.

Section 440. Update of FAA comprehensive plan

    This section requires the FAA to update the comprehensive 
plan required by the FAA Modernization and Reform Act of 2012 
to include a concept of operations addressing unlawful or 
harmful operations of unmanned aircraft.

Section 441. Cooperation related to certain counter-UAS technology

    This section requires the Secretary to consult with the 
Secretary of Defense on matters related to the deployment of 
counter-UAS in the NAS by drawing upon the expertise and 
experience of the DOD.

                   Title V--Air Service Improvements

           SUBTITLE A--AIRLINE CUSTOMER SERVICE IMPROVEMENTS

Section 501. Reliable air service in American Samoa

    This section requires the Secretary to review the emergency 
air transportation by foreign carriers exemption, in the case 
of sustaining air transportation between the Islands of Tutuila 
and Manu'a in American Samoa, every 180 days instead of every 
30 days.

Section 502. Cell phone voice communication ban

    This section directs the Secretary to issue regulations 
prohibiting an individual on an aircraft from using a cell 
phone during a domestic scheduled passenger flight, with 
exemptions applying to any member of the flight crew or flight 
attendant on duty on an aircraft, as well as federal law 
enforcement acting in an official capacity.

Section 503. Advisory Committee for Aviation Consumer Protection

    This section adds independent distributors of travel to the 
Advisory Committee for Aviation Consumer Protection created 
under the FAA Modernization and Reform Act of 2012 and extends 
it through fiscal year 2023.

Section 504. Improved notification of insecticide use

    This section requires that air carriers disclose to 
passengers whether a country with which they are booking a 
ticket to may treat the aircraft with insecticide or apply an 
aerosol insecticide when the cabin is occupied with passengers.

Section 505. Advertisements and disclosure of fees for passenger air 
        transportation

    This section states that it is not an unfair and deceptive 
practice for an air carrier to post the base airfare for air 
transportation in an advertisement or solicitation if the 
additional taxes, fees, and total cost of the air 
transportation are disclosed clearly to the consumer via a link 
on the air carrier's website. The section requires the 
Secretary to issue a final regulation no later than four months 
after the date of enactment. It also makes it an unfair and 
deceptive practice to fail to disclose additional fees for 
checked or carry-on baggage in a link when providing an 
internet fare quotation to a consumer.

Section 506. Involuntarily bumping passengers after aircraft boarded

    This section amends existing law by making it an unfair and 
deceptive practice to involuntarily deplane a revenue 
passenger, who is traveling on a confirmed reservation, and 
checked-in prior to the check-in deadline of the flight, after 
they have boarded the aircraft.

Section 507. Availability of consumer rights information

    This section requires air carriers to post customer service 
and consumer information on the homepage of the air carrier's 
website.

Section 508. Consumer complaints hotline

    This section requires the Secretary to evaluate the 
benefits of mobile phone applications or other technologies and 
to utilize such technologies to supplement the consumer 
complaints hotline established under the FAA Modernization and 
Reform Act of 2012.

Section 509. Widespread disruptions

    This section adds a new section to existing law to require 
air carriers, in the event of a widespread disruption, to 
immediately publish on their website whether or not the air 
carrier will provide accommodations and other amenities for 
impacted passengers. The term ``widespread disruption'' is 
defined in the section.

Section 510. Involuntarily denied boarding compensation

    This section requires the Secretary, no later than 60 days 
after the date of enactment, to issue a final rule clarifying 
current regulation with respect to compensation offered in the 
event of an involuntary denied boarding of a revenue passenger.

Section 511. Consumer information on actual flight times

    This section directs the Secretary to conduct a study on 
the feasibility and advisability of modifying regulations 
regarding the actual wheels off and wheels on times for 
reportable flights. Requires a report to Congress no later than 
one year after the date of enactment.

Section 512. Advisory committee for transparency in air ambulance 
        industry

    This section establishes an advisory committee to improve 
transparency among air ambulances in a variety of ways and 
requires the advisory committee to produce recommendations on 
various methodologies to be included in a report to Congress. 
When appointing federal agency representatives, the Secretary 
may consider a representative from the Department of Health and 
Human Services and the Medicare Payment Advisory Commission. 
The section also requires the Secretary to issue a final rule 
on any recommendations on the disclosure of charges.

Section 513. Air ambulance complaints

    This section amends existing law to include air ambulance 
operators in the scope of certain consumer protection laws and 
to enable consumers to report alleged unfair and deceptive 
practices by air ambulances to the Secretary.

Section 514. Passenger rights

    This section requires air carriers to submit to the 
Secretary a one-page document outlining the rights of 
passengers. The document shall include the various forms of 
compensation in the event of flight delays and cancellations, 
compensation for mishandled or lost baggage, voluntary denied 
boarding practices due to overbooking, and involuntary denied 
boarding practices. This document will be made available on the 
air carrier's website.

            SUBTITLE B--AVIATION CONSUMERS WITH DISABILITIES

Section 541. Select subcommittee

    This section establishes a Select Subcommittee for Aviation 
Consumers with Disabilities to the Advisory Committee for 
Aviation Consumer Protection that was created by the FAA 
Modernization and Reform Act of 2012. The Select Subcommittee 
will advise the Secretary on issues related to air travel for 
consumers with disabilities and will be comprised of members 
appointed by the Secretary from national disability 
organizations, air carriers and foreign air carriers, airport 
operators, and contract service providers. This section 
requires both a report to the Advisory Committee and a report 
to Congress.

Section 542. Aviation consumers with disabilities study

    This section requires the Comptroller General to complete a 
study reviewing accessibility best practices for individuals 
with disabilities, specifically those recommended under the 
Architectural Barriers Act of 1960, the Rehabilitation Act of 
1973, the Air Carrier Access Act of 1986, and the Americans 
with Disabilities Act of 1990. This section also requires a 
report to be submitted no later than one year after the date of 
enactment to the Secretary and to Congress with findings and 
recommendations.

Section 543. Feasibility study on in-cabin wheelchair restraint systems

    This section requires the Secretary, no later than two 
years after enactment, to conduct a study on the feasibility of 
in-cabin wheelchair restraint systems and other ways air travel 
consumers with disabilities can be safely accommodated within 
them. It also requires the feasibility study to be done in 
consultation with the Architectural and Transportation Barriers 
Compliance Board, aircraft manufacturers, and air carriers, and 
requires a report no later than one year after the completion 
of the study.

Section 544. Access advisory committee recommendations

    This section directs the Secretary to issue a notice of 
proposed rulemaking addressing accommodations for travelers 
with disabilities, specifically with respect to accommodations 
for in-flight entertainment, accessible lavatories on single-
aisle aircraft, and service animals, and requires the Secretary 
to issue a final rule no later than one year thereafter.

                SUBTITLE C--SMALL COMMUNITY AIR SERVICE

Section 551. Essential Air Service authorization

    This section authorizes the Essential Air Service Program 
(EAS) at the following levels: $178 million for fiscal year 
2018; $182 million for fiscal year 2019; $185 million for 
fiscal year 2020; $327 million for fiscal year 2021; $337 
million for fiscal year 2022; and $347 million for fiscal year 
2023.

Section 552. Extension of final order establishing mileage adjustment 
        eligibility

    This section extends the effectiveness of a statutory 
clarification that the most commonly used route between an 
eligible place and the nearest medium or large hub airport is 
to be measured by highway mileage when reviewing any action to 
eliminate compensation for EAS to such place, or to terminate 
the location's compensation eligibility for such service.

Section 553. Study on essential air service reform

    This section requires the Comptroller General to conduct a 
report on the effectiveness and budgetary savings of reforms 
made to the EAS program over the past five years, and requires 
that the report contain options for further reform of the 
program.

Section 554. Small Community Air Service

    This section allows any airport that is a small hub or 
smaller to apply for a grant under the Small Community Air 
Service Development Program (SCASDP). Additionally, it directs 
the Secretary to give special consideration to communities 
seeking to restore scheduled air service that has been 
terminated. This section authorizes the appropriation for the 
SCASDP of $10 million in fiscal year 2018 through fiscal year 
2023, of which $4.8 million each year is made available for a 
new Regional Air Transportation Pilot Program. The pilot 
program will focus on establishing or reestablishing air 
service to communities that have experienced declines in 
service. Allows communities to reapply for SCASDP grants after 
10 years.

Section 555. Air Transportation to Noneligible Places

    This section amends existing law to extend the definition 
of what constitutes an ``eligible place'' to receive small 
community air service funding through the FAA Extension, 
Safety, and Security Act of 2016. This section also terminates 
the Air Transportation to Noneligible Places program two years 
after the date of enactment of the subsection.

                        Title VI--Miscellaneous

Section 601. Review of FAA strategic cybersecurity plan

    Not later than 120 days after the interim CEO of the 
Corporation is hired, the Administrator, in consultation with 
the interim CEO, is directed to conduct a review of the 
aviation cybersecurity framework that was developed as part of 
the FAA Extension, Safety and Security Act of 2016 (P.L. 114-
190). In conducting the review, the Administrator is tasked 
with considering how the framework should be updated to reflect 
the transfer of operational control of air traffic services 
from the FAA to the Corporation. This section requires a report 
to Congress no later than 120 days after the review is 
initiated.

Section 602. Consolidation and realignment of FAA services and 
        facilities

    This section amends section 804 of the FAA Modernization 
and Reform Act of 2012 by clarifying the input the 
Administrator should receive in preparing a National Facilities 
Realignment and Consolidation Report. Notwithstanding new 
section 90317(c), it directs the Secretary to continue to carry 
out any consolidation or realignment project commenced under 
Section 804.

Section 603. FAA review and reform

    This section requires the FAA to complete a report on 
actions the agency has taken to implement reforms to eliminate 
wasteful, inefficient, or redundant practices, procedures, or 
positions as required by section 812 of the FAA Modernization 
and Reform Act of 2012. Requires the FAA to conduct an 
additional review to identify additional wasteful, inefficient, 
or redundant practices, procedures, or positions in need of 
reform.

Section 604. Aviation fuel

    This section directs the Administrator to allow the use of 
qualified unleaded aviation gasoline in aircraft as a 
replacement for leaded gasoline, and identifies the aircraft 
and engines that are eligible to use the qualified replacement 
unleaded gasoline. It adopts a process that allows eligible 
aircraft and engines to operate safely with the qualified 
replacement unleaded gasoline. This section expresses that it 
is the Sense of Congress that the Piston Aviation Fuels 
Initiative of the Administration, in collaboration with the 
American Society for Testing and Materials, should work to find 
an appropriate unleaded fuel by January 1, 2023.

Section 605. Right to privacy when using air traffic control system

    This section ensures that the aircraft owners will continue 
to be able to request that their aircraft registration 
information not be publicly displayed in the Aircraft 
Situational Display.

Section 606. Air shows

    This section encourages the Administrator to work on an 
annual basis with airshows, GA communities, stadiums, and other 
large outdoor events and venues to identify and resolve 
scheduling conflicts between approved air shows and large 
outdoor events that have temporary flight restrictions imposed.

Section 607. Part 91 review, reform, and streamlining

    This section directs the FAA to establish a Task Force 
comprised of GA aircraft owners, operators, labor, and 
government representatives. The Task Force will assess the 
oversight and authorization processes and requirements for 
aircraft under Part 91, title 14, Code of Federal Regulations, 
and make recommendations to streamline the processes and reduce 
regulatory cost burdens and delays. The section sunsets the 
program on the day the report is submitted to Congress. The 
Administrator is directed to implement the recommendations of 
the Task Force.

Section 608. Aircraft registration

    This section directs the Administrator to initiate a 
rulemaking to increase the duration of registration for 
noncommercial GA aircraft to 10 years.

Section 609. Air transportation of lithium cells and batteries

    This section directs the Secretary, in coordination with 
appropriate federal agencies, to carry out cooperative efforts 
to ensure shippers of lithium ion and lithium metal batteries 
for air transport comply with ICAO Technical Instructions and 
Hazardous Material Regulations in the United States and work 
with appropriate federal agencies and international partners to 
ensure enforcement of existing applicable regulations. The 
section establishes the Lithium Ion Battery Safety Advisory 
Committee to facilitate communications between manufacturers of 
lithium ion cells and batteries, manufacturers whose products 
incorporate such batteries, and the federal government on the 
effectiveness and economic impacts of regulation of the 
transportation of lithium ion cells and batteries. This section 
requires a review of best practices for safe transportation of 
these batteries and how to reduce the risk and safety threats 
posed by the air transportation of undeclared hazardous 
materials. The Advisory Committee will be comprised of industry 
and government representatives appointed by the Secretary and 
will terminate six years after the Committee has been 
established.
    This section also directs the Secretary, in consultation 
with interested stakeholders, to submit to appropriate 
Congressional Committees an evaluation of current practices for 
packaging of lithium ion batteries and cells and any 
suggestions to improve the packaging in a safe, efficient, and 
cost effective manner. This section directs the Secretary to 
harmonize the regulations of the United States regarding air 
transport of lithium cells and batteries with ICAO technical 
standards. It additionally directs the Secretary to issue a 
limited exception on the restriction of the air transportation 
of medical device batteries with specific parameters. Lastly, 
this section establishes a policy for the DOT to support the 
participation of industry in working groups associated with 
ICAO addressing the safe air transportation of these batteries.

Section 610. Remote tower pilot program for rural or small communities

    This section directs the Secretary to establish a remote 
ATC tower pilot program to assess the benefits of such towers. 
This section sets forth the criteria the Secretary, after 
consultation with representatives of labor organizations 
representing employees of the ATC system, must use in the 
selection of sites where remote towers will be installed. The 
section additionally directs the Secretary to convene safety 
risk management panels for each remote tower site to review 
best practices that have already been developed and to analyze 
operational data from remote towers. This section requires that 
the pilot program established be eligible for airport 
improvement funding and that the Secretary establish a 
repeatable process to help expand the program.

Section 611. Ensuring FAA readiness to provide seamless oceanic 
        operations

    No later than September 30, 2018, this section requires the 
Secretary to make a final investment decision on the 
implementation of a reduced oceanic separation capability that 
shall be operational by March 31, 2019.

Section 612. Sense of Congress regarding women in aviation

    This section expresses the Sense of Congress on the 
importance of the aviation industry encouraging and supporting 
women pursuing careers in aviation.

Section 613. Obstruction evaluation aeronautical studies

    This section requires the Secretary to pursue adoption of 
the proposed policy titled ``Proposal to Consider the Impact of 
One Engine Inoperative Procedures in Obstruction Evaluation 
Aeronautical Studies'' only if the policy is treated as a 
significant regulatory action pursuant to Executive Order 
12866.

Section 614. Aircraft leasing

    This section clarifies existing law to say an aircraft 
lessor is only liable for losses and damages when the aircraft 
is in operational control of said lessor.

Section 615. Report on obsolete test equipment

    This section requires the Administrator to submit a report 
on the National Test Equipment Program of the FAA to identify 
obsolete test equipment and provide a plan to replace that 
equipment no later than 180 days after the date of enactment.

Section 616. Retired military controllers

    This section amends the current statutory hiring process 
for air traffic controllers. It directs the Administrator to 
establish a program that enables military controllers to be 
considered for an original appointment to an air traffic 
controller position when the individual: (1) is on terminal 
leave pending retirement from active duty military or retired 
from active duty military service within five years of applying 
to the air traffic controller position; and (2) within five 
years of applying to the air traffic controller position, has 
held either an air traffic control specialist certification or 
a facility rating.

Section 617. Pilots sharing flight expenses with passengers

    This section requires the Secretary to issue advisory 
guidance on how pilots can share flight expenses with other 
passengers within the parameters of existing federal law.

Section 618. Aviation rulemaking committee for Part 135 pilot rest and 
        duty rules

    This section establishes an aviation rulemaking committee 
(ARC), which will be comprised of industry representatives, 
labor organizations, and safety experts, to review and provide 
recommendations on pilot rest and duty rules for Part 135 
operations. It requires the Administrator to submit a report on 
it findings and issue a notice of proposed rulemaking based on 
the consensus recommendations of the ARC not later than one 
year after submittal of the report to Congress. Because the men 
and women who operate aircraft in this environment are most 
affected by these rules on a day-to-day basis and have the most 
direct knowledge of the limitations of current rules, the 
Committee believes such an evaluation should include the 
participation of Part 135/91k pilot labor from the largest 
private aviation operator in the world.

Section 619. Metropolitan Washington Airports Authority

    This section directs the DOT IG to conduct a study of the 
Metropolitan Washington Airports Authority (MWAA) to determine 
if MWAA has adopted previous DOT IG recommendations regarding 
MWAA's Office of Audit.

Section 620. Terminal aerodrome forecast

    This section directs the FAA to allow a Part 121 air 
carrier operating in a noncontiguous state to conduct 
operations to a destination in a noncontiguous state if certain 
operational weather requirements are met. This section 
clarifies flight rules for a non-contiguous state to ensure 
Alaska receives available weather information, and intends that 
without a written finding of necessity, based on objective 
evidence of imminent threat to safety, the Administrator shall 
not promulgate any Operation Specification, Policy or Guidance 
Document that is more restrictive or requires procedures which 
are not expressly stated in the regulations. Furthermore, when 
operating in Alaska it is the intent of this provision to 
include a variety of weather sources, including Modulated 
Automated Weather Systems, when determining a visual flight 
rule forecast for an airport or landing area in Alaska. Lastly, 
it clarifies flight rules for a non-contiguous state to ensure 
operators receive available weather information.

Section 621. Federal Aviation Administration employees stationed on 
        Guam

    This section states the Sense of Congress that the 
Administrator and the Secretary of Defense should seek an 
agreement that would enable FAA employees stationed on Guam to 
have access to DOD hospitals, commissaries, and exchanges in 
Guam.

Section 622. Technical corrections

    This section makes technical corrections to several 
provisions contained in the FAA Modernization and Reform Act of 
2012 and title 49, United States Code.

Section 623. Application of Veterans' Preference to Federal Aviation 
        Administration Personnel Management System

    This section applies title 5 veterans' hiring preference to 
the FAA.

Section 624. Public aircraft eligible for logging flight times

    This section directs the Administrator to update current 
regulations for logging of flight time to include aircraft 
under operational control of forest fire protection agencies.

Section 625. Federal Aviation Administration workforce review

    This section requires the Comptroller General to conduct a 
review and develop recommendations to assess the long-term 
workforce and training needs of the FAA. It additionally 
requires that the review be conducted no later than 120 days 
after the date of enactment, and requires a report to Congress 
on the recommendations no later than 270 days after the date of 
enactment.

Section 626. State taxation

    This section clarifies existing law to ensure non-generally 
applied taxes and fees generated at airports are wholly used 
for airport or aeronautical purposes.

Section 627. Aviation and aerospace workforce of the future

    This section expresses the Sense of Congress on how 
important it is to ensure the prevalence of programs and career 
pathway initiatives leading to employment in the aviation 
sector.

Section 628. Future Aviation and Aerospace workforce study

    This section requires the Comptroller General to conduct a 
study on various factors and best practices influencing the 
supply of young individuals in the aviation and aerospace 
industry. Additionally, it requires the study be conducted no 
later than 90 days after the date of enactment and that a 
report be submitted to Congress no later than one year after 
the date of enactment.

Section 629. FAA Leadership on Civil Supersonic Aircraft

    This section requires the FAA to exercise leadership and 
produce a report to Congress on the development of civil 
supersonic aircraft. Additionally, it requires the 
Administrator to submit the report to Congress no later than 
one year after the date of enactment.

Section 630. Oklahoma registry office

    This section directs the Administrator to consider the 
FAA's aircraft registry office located in Oklahoma City, 
Oklahoma, as excepted during a government shutdown or emergency 
to ensure it remains open.

Section 631. Foreign Air Transportation Under United States--European 
        Union Air Transport Agreement

    This section ensures that permits or exemptions issued by 
the Secretary to foreign air carriers do not undermine any 
labor standards and prevent market entry into the United States 
by ``flag of convenience carriers.'' If an interested person 
raises the applicability of Article 17 bis of the United 
States-European Union Air Transport Agreement of 2007, the 
Secretary would be prohibited from issuing a foreign air 
carrier permit or exemption unless the Secretary finds issuance 
would be consistent with Article 17 bis, and imposes additional 
conditions on such permit or exemption to ensure compliance 
with Article 17 bis. Also, the section adds to the necessary 
required findings before the Secretary may issue a permit to a 
foreign air carrier from any jurisdiction.

Section 632. Training on human trafficking for certain staff

    This section extends existing training requirements 
regarding human trafficking for flight attendants to other 
frontline airline personnel. The personnel in this section 
includes ticket counter agents, gate agents, and other 
employees who engage in regular interaction with passengers.

Section 633. Part 107 Implementation improvements

    This section gives the Administrator the authority to grant 
a waiver to operate beyond visual line of sight, over people, 
or at night for the purposes of transporting property. It 
requires the Secretary to publish a direct final rule on the 
expansion of waiver authority no later than 30 days after the 
date of enactment.

Section 634. Part 107 Transparency and technology improvements

    This section requires FAA to publish information on 
approved small UAS waivers and airspace authorizations and 
provide real time data on application status.

Section 635. Prohibitions against smoking on passenger flights

    This section amends the statutory definition of smoking to 
ban the use of e-cigarettes on commercial aircraft.

Section 636. Consumer protection requirements relating to large ticket 
        agents

    This section requires the Secretary to issue a final rule, 
no later than 90 days after the date of enactment, requiring 
large ticket agents to adopt minimum customer service 
standards. These standards include, issuing refunds for 
optional fees, disclosing policies on cancellation, and 
notifying passenger of itinerary changes, among others. This 
section defines the term ``large ticket agent'' to mean a 
ticket agent with an annual revenue of $100,000,000.00 or more.

Section 637. Agency procurement reporting requirements

    This section requires the Secretary to submit a report on 
the value of acquisitions made by the agency from entities that 
manufacture supplies outside of the United States. The report 
is required to indicate the dollar value of any materials or 
supplies purchased that were manufactured outside the United 
States as well as a summary of the total procurement of funds 
spent on said goods compared to goods manufactured in the 
United States. The report is required no later than 90 days 
after the end of the fiscal year.

Section 638. Zero-emission vehicles and technology

    This section reforms the FAA's Voluntary Airport Low 
Emissions and Zero Emissions Vehicle Programs and clarifies 
that airports have the option to use AIP or PFCs to fund 
projects under those programs.

Section 639. Employee assault prevention and response plans

    This section requires Part 121 air carriers, in 
collaboration with the FAA, to establish employee assault 
prevention and response plans. This section requires the plans 
to be developed in consultation with the labor union 
representing customer service agents. The section also directs 
that the plans include reporting protocols for customer service 
agents who have been assaulted, for notifying law enforcement, 
and for informing federal law enforcement of certain 
violations.

Section 640. Study on training of customer-facing air carrier employees

    This section requires the Secretary to conduct a study on 
training received by air carriers' customer-facing employees 
and take appropriate actions to address any shortcomings in the 
training by way of recommendations and, if determined 
appropriate, other supplemental training. Additionally, it 
requires the study to be conducted no later than 180 days after 
the date of enactment, and a report to Congress no later than 
one year thereafter.

Section 641. Minimum dimensions for passenger seats

    This section requires the FAA to issue regulations 
establishing minimum seat dimension standards on passenger 
aircraft for the health and safety of airline passengers. These 
regulations may only be established after a public notice and 
opportunity for comment period.

Section 642. Study on ground transportation options

    This section requires the Comptroller General to conduct a 
study on ground transportation options to and from major 
airports. The study should review the ground transportation 
options at various airports and determine whether or not it is 
appropriate to use AIP and PFC funds to address congestion 
issues to airports.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE

 Subtitle                                                           Sec.
      Department of Transportation...................................101
     * * * * * * *
      American Air Navigation Services Corporation.................90101

SUBTITLE I--DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *

CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *

Sec. 106. Federal Aviation Administration

  (a) The Federal Aviation Administration is an administration 
in the Department of Transportation.
  (b) The head of the Administration is the Administrator, who 
shall be appointed by the President, by and with the advice and 
consent of the Senate. When making an appointment, the 
President shall consider the fitness of the individual to carry 
out efficiently the duties and powers of the office. Except as 
provided in subsection (f) or in other provisions of law, the 
Administrator reports directly to the Secretary of 
Transportation. The term of office for any individual appointed 
as Administrator after August 23, 1994, shall be 5 years.
  (c) The Administrator must--
          (1) be a citizen of the United States;
          (2) be a civilian; and
          (3) have experience in a field directly related to 
        aviation.
  (d)(1) The Administration has a Deputy Administrator, who 
shall be appointed by the President. In making an appointment, 
the President shall consider the fitness of the appointee to 
efficiently carry out the duties and powers of the office. The 
Deputy Administrator shall be a citizen of the United States 
and have experience in a field directly related to aviation. An 
officer on active duty in an armed force may be appointed as 
Deputy Administrator. However, if the Administrator is a former 
regular officer of an armed force, the Deputy Administrator may 
not be an officer on active duty in an armed force, a retired 
regular officer of an armed force, or a former regular officer 
of an armed force.
  (2) The annual rate of basic pay of the Deputy Administrator 
shall be set by the Secretary but shall not exceed the annual 
rate of basic pay payable to the Administrator of the Federal 
Aviation Administration.
  (3) An officer on active duty or a retired officer serving as 
Deputy Administrator is entitled to hold a rank and grade not 
lower than that held when appointed as Deputy Administrator. 
The Deputy Administrator may elect to receive (A) the pay 
provided by law for the Deputy Administrator, or (B) the pay 
and allowances or the retired pay of the military grade held. 
If the Deputy Administrator elects to receive the military pay 
and allowances or retired pay, the Administration shall 
reimburse the appropriate military department from funds 
available for the expenses of the Administration.
  (4) The appointment and service of a member of the armed 
forces as a Deputy Administrator does not affect the status, 
office, rank, or grade held by that member, or a right or 
benefit arising from the status, office, rank, or grade. The 
Secretary of a military department does not control the member 
when the member is carrying out duties and powers of the Deputy 
Administrator.
  (e) The Administrator and the Deputy Administrator may not 
have a pecuniary interest in, or own stock in or bonds of, an 
aeronautical enterprise, or engage in another business, 
vocation, or employment.
  (f) Authority of the Secretary and the Administrator.--
          (1) Authority of the Secretary.--Except as provided 
        in paragraph (2), the Secretary of Transportation shall 
        carry out the duties and powers, and controls the 
        personnel and activities, of the Administration. 
        Neither the Secretary nor the Administrator may submit 
        decisions for the approval of, or be bound by the 
        decisions or recommendations of, a committee, board, or 
        organization established by executive order.
          (2) Authority of the Administrator.--The 
        Administrator--
                  (A) is the final authority for carrying out 
                all functions, powers, and duties of the 
                Administration relating to--
                          (i) the appointment and employment of 
                        all officers and employees of the 
                        Administration (other than Presidential 
                        and political appointees);
                          (ii) the acquisition and maintenance 
                        of property, services, and equipment of 
                        the Administration;
                          (iii) except as otherwise provided in 
                        paragraph (3), the promulgation of 
                        regulations, rules, orders, circulars, 
                        bulletins, and other official 
                        publications of the Administration; and
                          (iv) any obligation imposed on the 
                        Administrator, or power conferred on 
                        the Administrator, by the Air Traffic 
                        Management System Performance 
                        Improvement Act of 1996 (or any 
                        amendment made by that Act);
                  (B) shall offer advice and counsel to the 
                President with respect to the appointment and 
                qualifications of any officer or employee of 
                the Administration to be appointed by the 
                President or as a political appointee;
                  (C) may delegate, and authorize successive 
                redelegations of, to an officer or employee of 
                the Administration any function, power, or duty 
                conferred upon the Administrator, unless such 
                delegation is prohibited by law; and
                  (D) except as otherwise provided for in this 
                title, and notwithstanding any other provision 
                of law, shall not be required to coordinate, 
                submit for approval or concurrence, or seek the 
                advice or views of the Secretary or any other 
                officer or employee of the Department of 
                Transportation on any matter with respect to 
                which the Administrator is the final authority.
          (3) Regulations.--
                  (A) In general.--In the performance of the 
                functions of the Administrator and the 
                Administration, the Administrator is authorized 
                to issue, rescind, and revise such regulations 
                as are necessary to carry out those functions. 
                The issuance of such regulations shall be 
                governed by the provisions of chapter 5 of 
                title 5. The Administrator shall act upon all 
                petitions for rulemaking no later than 6 months 
                after the date such petitions are filed by 
                dismissing such petitions, by informing the 
                petitioner of an intention to dismiss, or by 
                issuing a notice of proposed rulemaking or 
                advanced notice of proposed rulemaking. The 
                Administrator shall issue a final regulation, 
                or take other final action, not later than 16 
                months after the last day of the public comment 
                period for the regulations or, in the case of 
                an advanced notice of proposed rulemaking, if 
                issued, not later than 24 months after the date 
                of publication in the Federal Register of 
                notice of the proposed rulemaking. On February 
                1 and August 1 of each year 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 
                letter listing each deadline the Administrator 
                missed under this subparagraph during the 6-
                month period ending on such date, including an 
                explanation for missing the deadline and a 
                projected date on which the action that was 
                subject to the deadline will be taken.
                  (B) Approval of Secretary of 
                Transportation.--(i) The Administrator may not 
                issue a proposed regulation or final regulation 
                that is likely to result in the expenditure by 
                State, local, and tribal governments in the 
                aggregate, or by the private sector, of 
                $250,000,000 or more (adjusted annually for 
                inflation beginning with the year following the 
                date of the enactment of the Wendell H. Ford 
                Aviation Investment and Reform Act for the 21st 
                Century) in any year, or any regulation which 
                is significant, unless the Secretary of 
                Transportation approves the issuance of the 
                regulation in advance. For purposes of this 
                paragraph, a regulation is significant if the 
                Administrator, in consultation with the 
                Secretary (as appropriate), determines that the 
                regulation is likely to--
                          (I) have an annual effect on the 
                        economy of $250,000,000 or more or 
                        adversely affect in a substantial and 
                        material way the economy, a sector of 
                        the economy, productivity, competition, 
                        jobs, the environment, public health or 
                        safety, or State, local, or tribal 
                        governments or communities; or
                          (II) raise novel or significant legal 
                        or policy issues arising out of legal 
                        mandates that may substantially and 
                        materially affect other transportation 
                        modes.
                  (ii) In an emergency, the Administrator may 
                issue a regulation described in clause (i) 
                without prior approval by the Secretary, but 
                any such emergency regulation is subject to 
                ratification by the Secretary after it is 
                issued and shall be rescinded by the 
                Administrator within 5 days (excluding 
                Saturdays, Sundays, and legal public holidays) 
                after issuance if the Secretary fails to ratify 
                its issuance.
                  (iii) Any regulation that does not meet the 
                criteria of clause (i), and any regulation or 
                other action that is a routine or frequent 
                action or a procedural action, may be issued by 
                the Administrator without review or approval by 
                the Secretary.
                  (iv) The Administrator shall submit a copy of 
                any regulation requiring approval by the 
                Secretary under clause (i) to the Secretary, 
                who shall either approve it or return it to the 
                Administrator with comments within 45 days 
                after receiving it.
                  (C) Periodic review.--(i) Beginning on the 
                date which is 3 years after the date of the 
                enactment of the Air Traffic Management System 
                Performance Improvement Act of 1996, the 
                Administrator shall review any unusually 
                burdensome regulation issued by the 
                Administrator after such date of enactment 
                beginning not later than 3 years after the 
                effective date of the regulation to determine 
                if the cost assumptions were accurate, the 
                benefit of the regulations, and the need to 
                continue such regulations in force in their 
                present form.
                  (ii) The Administrator may identify for 
                review under the criteria set forth in clause 
                (i) unusually burdensome regulations that were 
                issued before the date of the enactment of the 
                Air Traffic Management System Performance 
                Improvement Act of 1996 and that have been in 
                force for more than 3 years.
                  (iii) For purposes of this subparagraph, the 
                term ``unusually burdensome regulation'' means 
                any regulation that results in the annual 
                expenditure by State, local, and tribal 
                governments in the aggregate, or by the private 
                sector, of $25,000,000 or more (adjusted 
                annually for inflation beginning with the year 
                following the date of the enactment of the Air 
                Traffic Management System Performance Act of 
                1996) in any year.
                  (iv) The periodic review of regulations may 
                be performed by advisory committees and the 
                Management Advisory Council established under 
                subsection (p).
          (4) Definition of political appointee.--For purposes 
        of this subsection, the term ``political appointee'' 
        means any individual who--
                  (A) is employed in a position listed in 
                sections 5312 through 5316 of title 5 (relating 
                to the Executive Schedule);
                  (B) is a limited term appointee, limited 
                emergency appointee, or noncareer appointee in 
                the Senior Executive Service, as defined under 
                paragraphs (5), (6), and (7), respectively, of 
                section 3132(a) of title 5; or
                  (C) is employed in a position in the 
                executive branch of the Government of a 
                confidential or policy-determining character 
                under schedule C of subpart C of part 213 of 
                title 5 of the Code of Federal Regulations.
  (g) Duties and Powers of Administrator.--(1) Except as 
provided in paragraph (2) of this subsection, the Administrator 
shall carry out--
          (A) duties and powers of the Secretary of 
        Transportation under subsection (f) of this section 
        related to aviation safety (except those related to 
        transportation, packaging, marking, or description of 
        hazardous material) and stated in sections 308(b), 
        1132(c) and (d), 40101(c), 40103(b), 40106(a), 40108, 
        40109(b), 40113(a), 40113(c), 40113(d), 40113(e), 
        40114(a), and 40119, chapter 445 (except sections 
        44501(b), 44502(a)(2), 44502(a)(3), 44502(a)(4), 44503, 
        44506, 44509, 44510, 44514, and 44515), chapter 447 
        (except sections 44717, 44718(a), 44718(b), 44719, 
        44720, 44721(b), 44722, and 44723), chapter 449 (except 
        sections 44903(d), 44904, 44905, 44907-44911, 44913, 
        44915, and 44931-44934), chapter 451, chapter 453, 
        sections 46104, 46301(d) and (h)(2), 46303(c), 46304-
        46308, 46310, 46311, and 46313-46316, chapter 465, and 
        sections 47504(b) (related to flight procedures), 
        47508(a), and 48107 of this title; and
          (B) additional duties and powers prescribed by the 
        Secretary of Transportation.
  (2) In carrying out sections 40119, 44901, 44903(a)-(c) and 
(e), 44906, 44912, 44935-44937, 44938(a) and (b), and 48107 of 
this title, paragraph (1)(A) of this subsection does not apply 
to duties and powers vested in the Director of Intelligence and 
Security by section 44931 of this title.
  (h) Section 40101(d) of this title applies to duties and 
powers specified in subsection (g)(1) of this section. Any of 
those duties and powers may be transferred to another part of 
the Department only when specifically provided by law or a 
reorganization plan submitted under chapter 9 of title 5. A 
decision of the Administrator in carrying out those duties or 
powers is administratively final.
  (i) The Deputy Administrator shall carry out duties and 
powers prescribed by the Administrator. The Deputy 
Administrator acts for the Administrator when the Administrator 
is absent or unable to serve, or when the office of the 
Administrator is vacant.
  (j) There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.
  (k) Authorization of Appropriations for Operations.--
          (1) Salaries, operations, and maintenance from 
        general fund._There is authorized to be appropriated to 
        the Secretary of Transportation for salaries, 
        operations, and maintenance of the Administration--
                  [(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;
                  [(D) $9,653,000,000 for fiscal year 2015; and
                  [(E) $9,909,724,000 for each of fiscal years 
                2016 and 2017.]
                  (A) $2,059,000,000 for fiscal year 2018;
                  (B) $2,126,000,000 for fiscal year 2019;
                  (C) $2,197,000,000 for fiscal year 2020;
                  (D) $1,957,000,000 for fiscal year 2021;
                  (E) $2,002,000,000 for fiscal year 2022; and
                  (F) $2,047,000,000 for fiscal year 2023.
        Such sums shall remain available until expended.
          [(2) Authorized expenditures.--Out of amounts 
        appropriated under paragraph (1), the following 
        expenditures are authorized:
                  [(A) Such sums as may be necessary for fiscal 
                years 2012 through 2015 to carry out and expand 
                the Air Traffic Control Collegiate Training 
                Initiative.
                  [(B) Such sums as may be necessary for fiscal 
                years 2012 through 2015 for the completion of 
                the Alaska aviation safety project with respect 
                to the 3 dimensional mapping of Alaska's main 
                aviation corridors.
                  [(C) Such sums as may be necessary for fiscal 
                years 2012 through 2015 to carry out the 
                Aviation Safety Reporting System and the 
                development and maintenance of helicopter 
                approach procedures.]
          (2) Salaries, operations, and maintenance from 
        airport and airway trust fund.--There is authorized to 
        be appropriated to the Secretary out of the Airport and 
        Airway Trust Fund established under section 9502 of the 
        Internal Revenue Code of 1986 for salaries, operations, 
        and maintenance of the Administration--
                  (A) $8,073,000,000 for fiscal year 2018;
                  (B) $8,223,000,000 for fiscal year 2019; and
                  (C) $8,374,000,000 for fiscal year 2020.
          (3) Administering program within available funding.--
        Notwithstanding any other provision of law, in each of 
        [fiscal years 2012 through 2017] fiscal years 2018 
        through 2020, if the Secretary determines that the 
        funds appropriated under [paragraph (1)] paragraphs (1) 
        and (2) 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)] paragraphs (1) and (2)
  (l) Personnel and Services.--
          (1) Officers and employees.--Except as provided in 
        subsections (a) and (g) of section 40122, the 
        Administrator is authorized, in the performance of the 
        functions of the Administrator, to appoint, transfer, 
        and fix the compensation of such officers and 
        employees, including attorneys, as may be necessary to 
        carry out the functions of the Administrator and the 
        Administration. In fixing compensation and benefits of 
        officers and employees, the Administrator shall not 
        engage in any type of bargaining, except to the extent 
        provided for in section 40122(a), nor shall the 
        Administrator be bound by any requirement to establish 
        such compensation or benefits at particular levels.
          (2) Experts and consultants.--The Administrator is 
        authorized to obtain the services of experts and 
        consultants in accordance with section 3109 of title 5.
          (3) Transportation and per diem expenses.--The 
        Administrator is authorized to pay transportation 
        expenses, and per diem in lieu of subsistence expenses, 
        in accordance with chapter 57 of title 5.
          (4) Use of personnel from other agencies.--The 
        Administrator is authorized to utilize the services of 
        personnel of any other Federal agency (as such term is 
        defined under section 551(1) of title 5).
          (5) Voluntary services.--
                  (A) General rule.--In exercising the 
                authority to accept gifts and voluntary 
                services under section 326 of this title, and 
                without regard to section 1342 of title 31, the 
                Administrator may not accept voluntary and 
                uncompensated services if such services are 
                used to displace Federal employees employed on 
                a full-time, part-time, or seasonal basis.
                  (B) Incidental expenses.--The Administrator 
                is authorized to provide for incidental 
                expenses, including transportation, lodging, 
                and subsistence, for volunteers who provide 
                voluntary services under this subsection.
                  (C) Limited treatment as federal employees.--
                An individual who provides voluntary services 
                under this subsection shall not be considered a 
                Federal employee for any purpose other than for 
                purposes of chapter 81 of title 5, relating to 
                compensation for work injuries, and chapter 171 
                of title 28, relating to tort claims.
          (6) Contracts.--The Administrator is authorized to 
        enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as may be 
        necessary to carry out the functions of the 
        Administrator and the Administration. The Administrator 
        may enter into such contracts, leases, cooperative 
        agreements, and other transactions with any Federal 
        agency (as such term is defined in section 551(1) of 
        title 5) or any instrumentality of the United States, 
        any State, territory, or possession, or political 
        subdivision thereof, any other governmental entity, or 
        any person, firm, association, corporation, or 
        educational institution, on such terms and conditions 
        as the Administrator may consider appropriate.
  (m) Cooperation by Administrator.--With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, 
personnel, and facilities of any other Federal agency (as such 
term is defined in section 551(1) of title 5) and any other 
public or private entity. The Administrator may also cooperate 
with appropriate officials of other public and private agencies 
and instrumentalities concerning the use of services, 
equipment, personnel, and facilities. The head of each Federal 
agency shall cooperate with the Administrator in making the 
services, equipment, personnel, and facilities of the Federal 
agency available to the Administrator. The head of a Federal 
agency is authorized, notwithstanding any other provision of 
law, to transfer to or to receive from the Administration, with 
or without reimbursement, supplies, personnel, services, and 
equipment other than administrative supplies or equipment.
  (n) Acquisition.--
          (1) In general.--The Administrator is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise), construct, 
                improve, repair, operate, and maintain--
                          (i) air traffic control facilities 
                        and equipment;
                          (ii) research and testing sites and 
                        facilities; and
                          (iii) such other real and personal 
                        property (including office space and 
                        patents), or any interest therein, 
                        within and outside the continental 
                        United States as the Administrator 
                        considers necessary;
                  (B) to lease to others such real and personal 
                property; and
                  (C) to provide by contract or otherwise for 
                eating facilities and other necessary 
                facilities for the welfare of employees of the 
                Administration at the installations of the 
                Administration, and to acquire, operate, and 
                maintain equipment for these facilities.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (o) Transfers of Funds.--The Administrator is authorized to 
accept transfers of unobligated balances and unexpended 
balances of funds appropriated to other Federal agencies (as 
such term is defined in section 551(1) of title 5) to carry out 
functions transferred by law to the Administrator or functions 
transferred pursuant to law to the Administrator on or after 
the date of the enactment of the Air Traffic Management System 
Performance Improvement Act of 1996.
  (p) Management Advisory Council and Air Traffic Services 
Board.--
          (1) Establishment.--Within 3 months after the date of 
        the enactment of the Air Traffic Management System 
        Performance Improvement Act of 1996, the Administrator 
        shall establish an advisory council which shall be 
        known as the Federal Aviation Management Advisory 
        Council (in this subsection referred to as the 
        ``Council''). With respect to Administration 
        management, policy, spending, funding, and regulatory 
        matters affecting the aviation industry, the Council 
        may submit comments, recommended modifications, and 
        dissenting views to the Administrator. The 
        Administrator shall include in any submission to 
        Congress, the Secretary, or the general public, and in 
        any submission for publication in the Federal Register, 
        a description of the comments, recommended 
        modifications, and dissenting views received from the 
        Council, together with the reasons for any differences 
        between the views of the Council and the views or 
        actions of the Administrator.
          (2) Membership.--The Council shall consist of 13 
        members, who shall consist of--
                  (A) a designee of the Secretary of 
                Transportation;
                  (B) a designee of the Secretary of Defense;
                  (C) 10 members representing aviation 
                interests, appointed by--
                          (i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate, except that 
                        initial appointments made after May 1, 
                        2003, shall be made by the Secretary of 
                        Transportation; and
                          (ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation; and
                  (D) 1 member appointed, from among 
                individuals who are the leaders of their 
                respective unions of air traffic control system 
                employees, by the Secretary of Transportation.
          (3) Qualifications.--No officer or employee of the 
        United States Government may be appointed to the 
        Council under paragraph (2)(C) or to the Air Traffic 
        Services Committee.
          (4) Functions.--
                  (A) In general.--(i) The Council shall 
                provide advice and counsel to the Administrator 
                on issues which affect or are affected by the 
                operations of the Administrator. The Council 
                shall function as an oversight resource for 
                management, policy, spending, and regulatory 
                matters under the jurisdiction of the 
                Administration.
                  (ii) The Council shall review the rulemaking 
                cost-benefit analysis process and develop 
                recommendations to improve the analysis and 
                ensure that the public interest is fully 
                protected.
                  (iii) The Council shall review the process 
                through which the Administration determines to 
                use advisory circulars and service bulletins.
                  (B) Meetings.--The Council shall meet on a 
                regular and periodic basis or at the call of 
                the chairman or of the Administrator.
                  (C) Access to documents and staff.--The 
                Administration may give the Council or Air 
                Traffic Services Committee appropriate access 
                to relevant documents and personnel of the 
                Administration, and the Administrator shall 
                make available, consistent with the authority 
                to withhold commercial and other proprietary 
                information under section 552 of title 5 
                (commonly known as the ``Freedom of Information 
                Act''), cost data associated with the 
                acquisition and operation of air traffic 
                service systems. Any member of the Council or 
                Air Traffic Services Committee who receives 
                commercial or other proprietary data from the 
                Administrator shall be subject to the 
                provisions of section 1905 of title 18, 
                pertaining to unauthorized disclosure of such 
                information.
          (5) Federal Advisory Committee Act not to apply.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) does not 
        apply to the Council, the Air Traffic Services 
        Committee, or such aviation rulemaking committees as 
        the Administrator shall designate.
          (6) Administrative matters.--
                  (A) Terms of members appointed under 
                paragraph (2)(c).--Members of the Council 
                appointed under paragraph (2)(C) shall be 
                appointed for a term of 3 years. Of the members 
                first appointed by the President under 
                paragraph (2)(C)--
                          (i) 3 shall be appointed for terms of 
                        1 year;
                          (ii) 4 shall be appointed for terms 
                        of 2 years; and
                          (iii) 3 shall be appointed for terms 
                        of 3 years.
                  (B) Term for air traffic control 
                representative.--The member appointed under 
                paragraph (2)(D) shall be appointed for a term 
                of 3 years, except that the term of such 
                individual shall end whenever the individual no 
                longer meets the requirements of paragraph 
                (2)(D).
                  (C) Terms for Air Traffic Services Committee 
                members.--The members appointed to the Air 
                Traffic Services Committee shall be appointed 
                for a term of 5 years, except that the first 
                members of the Committee shall be the members 
                of the Air Traffic Services Subcommittee of the 
                Council on the day before the date of enactment 
                of the Vision 100--Century of Aviation 
                Reauthorization Act who shall serve in an 
                advisory capacity until such time as the 
                President appoints the members of the Committee 
                under paragraph (7).
                  (D) Reappointment.--An individual may not be 
                appointed to the Committee to more than two 5-
                year terms.
                  (E) Vacancy.--Any vacancy on the Council or 
                Committee shall be filled in the same manner as 
                the original appointment, except that any 
                vacancy caused by a member appointed by the 
                President under paragraph (2)(C)(i) shall be 
                filled by the Secretary in accordance with 
                paragraph (2)(C)(ii). Any member appointed to 
                fill a vacancy occurring before the expiration 
                of the term for which the member's predecessor 
                was appointed shall be appointed for the 
                remainder of that term.
                  (F) Continuation in office.--A member of the 
                Council or Committee whose term expires shall 
                continue to serve until the date on which the 
                member's successor takes office.
                  (G) Removal.--Any member of the Council 
                appointed under paragraph (2)(D) may be removed 
                for cause by the President or Secretary whoever 
                makes the appointment. Any member of the 
                Committee may be removed for cause by the 
                Secretary.
                  (H) Claims against members of Committee.--
                          (i) In general.--A member appointed 
                        to the Committee shall have no personal 
                        liability under Federal law with 
                        respect to any claim arising out of or 
                        resulting from an act or omission by 
                        such member within the scope of service 
                        as a member of the Committee.
                          (ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                  (I) to affect any other 
                                immunity or protection that may 
                                be available to a member of the 
                                Subcommittee under applicable 
                                law with respect to such 
                                transactions;
                                  (II) to affect any other 
                                right or remedy against the 
                                United States under applicable 
                                law; or
                                  (III) to limit or alter in 
                                any way the immunities that are 
                                available under applicable law 
                                for Federal officers and 
                                employees.
                  (I) Ethical considerations.--
                          (i) Financial disclosure.--During the 
                        entire period that an individual is 
                        serving as a member of the Committee, 
                        such individual shall be treated as 
                        serving as an officer or employee 
                        referred to in section 101(f) of the 
                        Ethics in Government Act of 1978 for 
                        purposes of title I of such Act; except 
                        that section 101(d) of such Act shall 
                        apply without regard to the number of 
                        days of service in the position.
                          (ii) Restrictions on post-
                        employment.--For purposes of section 
                        207(c) of title 18, an individual who 
                        is a member of the Committee shall be 
                        treated as an employee referred to in 
                        section 207(c)(2)(A)(i) of such title 
                        during the entire period the individual 
                        is a member of the Committee; except 
                        that subsections (c)(2)(B) and (f) of 
                        section 207 of such title shall not 
                        apply.
                  (J) Chairman; vice chairman.--The Council 
                shall elect a chair and a vice chair from among 
                the members appointed under paragraph (2)(C), 
                each of whom shall serve for a term of 1 year. 
                The vice chair shall perform the duties of the 
                chairman in the absence of the chairman.
                  (K) Travel and per diem.--Each member of the 
                Council or Committee shall be paid actual 
                travel expenses, and per diem in lieu of 
                subsistence expenses when away from his or her 
                usual place of residence, in accordance with 
                section 5703 of title 5.
                  (L) Detail of personnel from the 
                administration.--The Administrator shall make 
                available to the Council or Committee such 
                staff, information, and administrative services 
                and assistance as may reasonably be required to 
                enable the Council or Committee to carry out 
                its responsibilities under this subsection.
          (7) Air Traffic Services Committee.--
                  (A) Establishment.--The Administrator shall 
                establish a committee that is independent of 
                the Council by converting the Air Traffic 
                Services Subcommittee of the Council, as in 
                effect on the day before the date of enactment 
                of the Vision 100--Century of Aviation 
                Reauthorization Act, into such committee. The 
                committee shall be known as the Air Traffic 
                Services Committee (in this subsection referred 
                to as the ``Committee'').
                  (B) Membership and qualifications.--Subject 
                to paragraph (6)(C), the Committee shall 
                consist of five members, one of whom shall be 
                the Administrator and shall serve as 
                chairperson. The remaining members shall be 
                appointed by the President with the advice and 
                consent of the Senate and--
                          (i) shall have a fiduciary 
                        responsibility to represent the public 
                        interest;
                          (ii) shall be citizens of the United 
                        States; and
                          (iii) shall be appointed without 
                        regard to political affiliation and 
                        solely on the basis of their 
                        professional experience and expertise 
                        in one or more of the following areas 
                        and, in the aggregate, should 
                        collectively bring to bear expertise in 
                        all of the following areas:
                                  (I) Management of large 
                                service organizations.
                                  (II) Customer service.
                                  (III) Management of large 
                                procurements.
                                  (IV) Information and 
                                communications technology.
                                  (V) Organizational 
                                development.
                                  (VI) Labor relations.
                  (C) Prohibitions on members of Committee.--No 
                member of the Committee may--
                          (i) have a pecuniary interest in, or 
                        own stock in or bonds of, an aviation 
                        or aeronautical enterprise, except an 
                        interest in a diversified mutual fund 
                        or an interest that is exempt from the 
                        application of section 208 of title 18;
                          (ii) engage in another business 
                        related to aviation or aeronautics; or
                          (iii) be a member of any organization 
                        that engages, as a substantial part of 
                        its activities, in activities to 
                        influence aviation-related legislation.
                  (D) General responsibilities.--
                          (i) Oversight.--The Committee shall 
                        oversee the administration, management, 
                        conduct, direction, and supervision of 
                        the air traffic control system.
                          (ii) Confidentiality.--The Committee 
                        shall ensure that appropriate 
                        confidentiality is maintained in the 
                        exercise of its duties.
                  (E) Specific responsibilities.--The Committee 
                shall have the following specific 
                responsibilities:
                          (i) Strategic plans.--To review, 
                        approve, and monitor the strategic plan 
                        for the air traffic control system, 
                        including the establishment of--
                                  (I) a mission and objectives;
                                  (II) standards of performance 
                                relative to such mission and 
                                objectives, including safety, 
                                efficiency, and productivity; 
                                and
                                  (III) annual and long-range 
                                strategic plans.
                          (ii) Modernization and improvement.--
                        To review and approve--
                                  (I) methods to accelerate air 
                                traffic control modernization 
                                and improvements in aviation 
                                safety related to air traffic 
                                control; and
                                  (II) procurements of air 
                                traffic control equipment in 
                                excess of $100,000,000.
                          (iii) Operational plans.--To review 
                        the operational functions of the air 
                        traffic control system, including--
                                  (I) plans for modernization 
                                of the air traffic control 
                                system;
                                  (II) plans for increasing 
                                productivity or implementing 
                                cost-saving measures; and
                                  (III) plans for training and 
                                education.
                          (iv) Management.--To--
                                  (I) review and approve the 
                                Administrator's appointment of 
                                a Chief Operating Officer under 
                                section 106(r);
                                  (II) review the 
                                Administrator's selection, 
                                evaluation, and compensation of 
                                senior executives of the 
                                Administration who have program 
                                management responsibility over 
                                significant functions of the 
                                air traffic control system;
                                  (III) review and approve the 
                                Administrator's plans for any 
                                major reorganization of the 
                                Administration that would 
                                impact on the management of the 
                                air traffic control system;
                                  (IV) review and approve the 
                                Administrator's cost accounting 
                                and financial management 
                                structure and technologies to 
                                help ensure efficient and cost-
                                effective air traffic control 
                                operation; and
                                  (V) review the performance 
                                and compensation of managers 
                                responsible for major 
                                acquisition projects, including 
                                the ability of the managers to 
                                meet schedule and budget 
                                targets.
                          (v) Budget.--To--
                                  (I) review and make 
                                recommendations on the budget 
                                request of the Administration 
                                related to the air traffic 
                                control system prepared by the 
                                Administrator;
                                  (II) submit such budget 
                                recommendations to the 
                                Secretary; and
                                  (III) base such budget 
                                recommendations on the annual 
                                and long-range strategic plans.
                  (F) Committee personnel matters and 
                expenses.--
                          (i) Personnel matters.--The Committee 
                        may appoint and terminate for purposes 
                        of employment by the Committee any 
                        personnel that may be necessary to 
                        enable the Committee to perform its 
                        duties, and may procure temporary and 
                        intermittent services under section 
                        40122.
                          (ii) Travel expenses.--Each member of 
                        the Committee shall receive travel 
                        expenses, including per diem in lieu of 
                        subsistence, in accordance with 
                        applicable provisions under subchapter 
                        I of chapter 57 of title 5, United 
                        States Code.
                  (G) Administrative matters.--
                          (i) Powers of chair.--Except as 
                        otherwise provided by a majority vote 
                        of the Committee, the powers of the 
                        chairperson shall include--
                                  (I) establishing committees;
                                  (II) setting meeting places 
                                and times;
                                  (III) establishing meeting 
                                agendas; and
                                  (IV) developing rules for the 
                                conduct of business.
                          (ii) Meetings.--The Committee shall 
                        meet at least quarterly and at such 
                        other times as the chairperson 
                        determines appropriate.
                          (iii) Quorum.--Three members of the 
                        Committee shall constitute a quorum. A 
                        majority of members present and voting 
                        shall be required for the Committee to 
                        take action.
                  (H) Authorization.--There are authorized to 
                be appropriated to the Committee such sums as 
                may be necessary for the Committee to carry out 
                its activities.
                  (I) Sunset.--The Committee shall terminate 
                and this paragraph shall cease to be effective 
                beginning on the date of transfer (as defined 
                in section 90101(a)).
          (8) Air traffic control system defined.--In this 
        section, the term ``air traffic control system'' has 
        the meaning such term has under section 40102(a).
          (9) Sunset of air traffic advisory role.--Beginning 
        on the date of transfer (as defined in section 
        90101(a)), the Council shall not develop or submit 
        comments, recommended modifications, or dissenting 
        views directly regarding the American Air Navigation 
        Services Corporation or air traffic services.
  (q) Aircraft Noise Ombudsman.--
          (1) Establishment.--There shall be in the 
        Administration an Aircraft Noise Ombudsman.
          (2) General duties and responsibilities.--The 
        Ombudsman shall--
                  (A) be appointed by the Administrator;
                  (B) serve as a liaison with the public on 
                issues regarding aircraft noise; and
                  (C) be consulted when the Administration 
                proposes changes in aircraft routes so as to 
                minimize any increases in aircraft noise over 
                populated areas.
          (3) Number of full-time equivalent employees.--The 
        appointment of an Ombudsman under this subsection shall 
        not result in an increase in the number of full-time 
        equivalent employees in the Administration.
  (r) Chief Operating Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control 
                system to be appointed by the Administrator, 
                with the approval of the Air Traffic Services 
                Committee. The Chief Operating Officer shall 
                report directly to the Administrator and shall 
                be subject to the authority of the 
                Administrator.
                  (B) Qualifications.--The Chief Operating 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation.
                  (C) Term.--The Chief Operating Officer shall 
                be appointed for a term of 5 years.
                  (D) Removal.--The Chief Operating 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 air traffic 
                control system.
                  (E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief 
                Operating 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 Operating Officer 
                shall be paid at an annual rate of basic pay to 
                be determined by the Administrator, with the 
                approval of the Air Traffic Services Committee. 
                The annual rate may not exceed the annual 
                compensation paid under section 102 of title 3. 
                The Chief Operating Officer shall be subject to 
                the post-employment provisions of section 207 
                of title 18 as if the position of Chief 
                Operating 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 Operating 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 
                Operating 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 Operating Officer, in consultation with 
        the Air Traffic Services Committee, shall enter into an 
        annual performance agreement that sets forth measurable 
        organization and individual goals for the Chief 
        Operating Officer in key operational areas. The 
        agreement shall be subject to review and renegotiation 
        on an annual basis.
          (4) Annual performance report.--The Chief Operating 
        Officer shall prepare and transmit to the Secretary of 
        Transportation, the Committee on Transportation and 
        Infrastructure 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 Administrator may delegate 
        to the Chief Operating Officer, or any other authority 
        within the Administration responsibilities, including 
        the following:
                  (A) Strategic plans.--To implement the 
                strategic plan of the Administration for the 
                air traffic control system in order to 
                further--
                          (i) a mission and objectives;
                          (ii) standards of performance 
                        relative to such mission and 
                        objectives, including safety, 
                        efficiency, and productivity;
                          (iii) annual and long-range strategic 
                        plans; and
                          (iv) methods of the Administration to 
                        accelerate air traffic control 
                        modernization and improvements in 
                        aviation safety related to air traffic 
                        control.
                  (B) Operations.--To oversee the day-to-day 
                operational functions of the Administration for 
                air traffic control, including--
                          (i) modernization of the air traffic 
                        control system;
                          (ii) increasing productivity or 
                        implementing cost-saving measures;
                          (iii) training and education; and
                          (iv) the management of cost-
                        reimbursable contracts.
                  (C) Budget.--To--
                          (i) develop a budget request of the 
                        Administration related to the air 
                        traffic control system;
                          (ii) submit such budget request to 
                        the Administrator and the Committee; 
                        and
                          (iii) ensure that the budget request 
                        supports the agency's annual and long-
                        range strategic plans for air traffic 
                        control services.
          (6) Sunset.--The position of Chief Operating Officer 
        shall terminate and this subsection shall cease to be 
        effective beginning on the date of transfer (as defined 
        in section 90101(a)).
  (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. In evaluating the performance of 
        the Chief NextGen Officer, the Administrator shall 
        consider the progress made in meeting the near-term 
        NextGen performance goals required pursuant to section 
        242 of the 21st Century AIRR Act and delivering near-
        term NextGen benefits.
          (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.
                  (I) Developing, as part of the annual report 
                required under paragraph (4), a description of 
                the progress made in meeting the near-term 
                NextGen performance goals required pursuant to 
                section 242 of the 21st Century AIRR Act and 
                delivering near-term NextGen benefits.
          (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.
          (8) Sunset.--The position of Chief NextGen Officer 
        shall terminate and this subsection shall cease to be 
        effective beginning on the date of transfer (as defined 
        in section 90101(a)).
  (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.

           *       *       *       *       *       *       *

                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A - AIR COMMERCE AND SAFETY

Chapter                                                             Sec.

                           SUBPART I - GENERAL

      General Provisions...........................................40101
     * * * * * * *

                          SUBPART III - SAFETY

     * * * * * * *
45501nmanned aircraft systems.........................................

           *       *       *       *       *       *       *

PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *

SUBPART I--GENERAL

           *       *       *       *       *       *       *

                    CHAPTER 401--GENERAL PROVISIONS

Sec. 40101. Policy

  (a) Economic Regulation.--In carrying out subpart II of this 
part and those provisions of subpart IV applicable in carrying 
out subpart II, the Secretary of Transportation shall consider 
the following matters, among others, as being in the public 
interest and consistent with public convenience and necessity:
          (1) assigning and maintaining safety as the highest 
        priority in air commerce.
          (2) before authorizing new air transportation 
        services, evaluating the safety implications of those 
        services.
          (3) preventing deterioration in established safety 
        procedures, recognizing the clear intent, 
        encouragement, and dedication of Congress to further 
        the highest degree of safety in air transportation and 
        air commerce, and to maintain the safety vigilance that 
        has evolved in air transportation and air commerce and 
        has come to be expected by the traveling and shipping 
        public.
          (4) the availability of a variety of adequate, 
        economic, efficient, and low-priced services without 
        unreasonable discrimination or unfair or deceptive 
        practices.
          (5) coordinating transportation by, and improving 
        relations among, air carriers, and encouraging fair 
        wages and working conditions.
          (6) placing maximum reliance on competitive market 
        forces and on actual and potential competition--
                  (A) to provide the needed air transportation 
                system; and
                  (B) to encourage efficient and well-managed 
                air carriers to earn adequate profits and 
                attract capital, considering any material 
                differences between interstate air 
                transportation and foreign air transportation.
          (7) developing and maintaining a sound regulatory 
        system that is responsive to the needs of the public 
        and in which decisions are reached promptly to make it 
        easier to adapt the air transportation system to the 
        present and future needs of--
                  (A) the commerce of the United States;
                  (B) the United States Postal Service; and
                  (C) the national defense.
          (8) encouraging air transportation at major urban 
        areas through secondary or satellite airports if 
        consistent with regional airport plans of regional and 
        local authorities, and if endorsed by appropriate State 
        authorities--
                  (A) encouraging the transportation by air 
                carriers that provide, in a specific market, 
                transportation exclusively at those airports; 
                and
                  (B) fostering an environment that allows 
                those carriers to establish themselves and 
                develop secondary or satellite airport 
                services.
          (9) preventing unfair, deceptive, predatory, or 
        anticompetitive practices in air transportation.
          (10) avoiding unreasonable industry concentration, 
        excessive market domination, monopoly powers, and other 
        conditions that would tend to allow at least one air 
        carrier or foreign air carrier unreasonably to increase 
        prices, reduce services, or exclude competition in air 
        transportation.
          (11) maintaining a complete and convenient system of 
        continuous scheduled interstate air transportation for 
        small communities and isolated areas with direct 
        financial assistance from the United States Government 
        when appropriate.
          (12) encouraging, developing, and maintaining an air 
        transportation system relying on actual and potential 
        competition--
                  (A) to provide efficiency, innovation, and 
                low prices; and
                  (B) to decide on the variety and quality of, 
                and determine prices for, air transportation 
                services.
          (13) encouraging entry into air transportation 
        markets by new and existing air carriers and the 
        continued strengthening of small air carriers to ensure 
        a more effective and competitive airline industry.
          (14) promoting, encouraging, and developing civil 
        aeronautics and a viable, privately-owned United States 
        air transport industry.
          (15) strengthening the competitive position of air 
        carriers to at least ensure equality with foreign air 
        carriers, including the attainment of the opportunity 
        for air carriers to maintain and increase their 
        profitability in foreign air transportation.
          (16) ensuring that consumers in all regions of the 
        United States, including those in small communities and 
        rural and remote areas, have access to affordable, 
        regularly scheduled air service.
          (17) preventing entry into United States markets by 
        flag of convenience carriers.
  (b) All-Cargo Air Transportation Considerations.--In carrying 
out subpart II of this part and those provisions of subpart IV 
applicable in carrying out subpart II, the Secretary of 
Transportation shall consider the following matters, among 
others and in addition to the matters referred to in subsection 
(a) of this section, as being in the public interest for all-
cargo air transportation:
          (1) encouraging and developing an expedited all-cargo 
        air transportation system provided by private 
        enterprise and responsive to--
                  (A) the present and future needs of shippers;
                  (B) the commerce of the United States; and
                  (C) the national defense.
          (2) encouraging and developing an integrated 
        transportation system relying on competitive market 
        forces to decide the extent, variety, quality, and 
        price of services provided.
          (3) providing services without unreasonable 
        discrimination, unfair or deceptive practices, or 
        predatory pricing.
  (c) General Safety Considerations.--In carrying out subpart 
III of this part and those provisions of subpart IV applicable 
in carrying out subpart III, the Administrator of the Federal 
Aviation Administration shall consider the following matters:
          (1) the requirements of national defense and 
        commercial and general aviation.
          (2) the public right of freedom of transit through 
        the navigable airspace.
  (d) Safety Considerations in Public Interest.--In carrying 
out subpart III of this part and those provisions of subpart IV 
applicable in carrying out subpart III, the Administrator shall 
consider the following matters, among others, as being in the 
public interest:
          (1) assigning, maintaining, and enhancing safety and 
        security as the highest priorities in air commerce.
          (2) regulating air commerce in a way that best 
        promotes safety and fulfills national defense 
        requirements.
          (3) encouraging and developing civil aeronautics, 
        including new aviation technology.
          (4) controlling the use of the navigable airspace and 
        regulating civil and military operations in that 
        airspace in the interest of the safety and efficiency 
        of both of those operations.
          (5) consolidating research and development for air 
        navigation facilities and the installation and 
        operation of those facilities.
          (6) developing and operating a common system of air 
        traffic control and navigation for military and civil 
        aircraft.
          (7) providing assistance to law enforcement agencies 
        in the enforcement of laws related to regulation of 
        controlled substances, to the extent consistent with 
        aviation safety.
  (e) International Air Transportation.--In formulating United 
States international air transportation policy, the Secretaries 
of State and Transportation shall develop a negotiating policy 
emphasizing the greatest degree of competition compatible with 
a well-functioning international air transportation system, 
including the following:
          (1) strengthening the competitive position of air 
        carriers to ensure at least equality with foreign air 
        carriers, including the attainment of the opportunity 
        for air carriers to maintain and increase their 
        profitability in foreign air transportation.
          (2) freedom of air carriers and foreign air carriers 
        to offer prices that correspond to consumer demand.
          (3) the fewest possible restrictions on charter air 
        transportation.
          (4) the maximum degree of multiple and permissive 
        international authority for air carriers so that they 
        will be able to respond quickly to a shift in market 
        demand.
          (5) eliminating operational and marketing 
        restrictions to the greatest extent possible.
          (6) integrating domestic and international air 
        transportation.
          (7) increasing the number of nonstop United States 
        gateway cities.
          (8) opportunities for carriers of foreign countries 
        to increase their access to places in the United States 
        if exchanged for benefits of similar magnitude for air 
        carriers or the traveling public with permanent linkage 
        between rights granted and rights given away.
          (9) eliminating discrimination and unfair competitive 
        practices faced by United States airlines in foreign 
        air transportation, including--
                  (A) excessive landing and user fees;
                  (B) unreasonable ground handling 
                requirements;
                  (C) unreasonable restrictions on operations;
                  (D) prohibitions against change of gauge; 
                [and]
                  (E) similar restrictive practices[.]; and
                  (F) erosion of labor standards associated 
                with flag of convenience carriers.
          (10) promoting, encouraging, and developing civil 
        aeronautics and a viable, privately-owned United States 
        air transport industry.
  (f) Strengthening Competition.--In selecting an air carrier 
to provide foreign air transportation from among competing 
applicants, the Secretary of Transportation shall consider, in 
addition to the matters specified in subsections (a) and (b) of 
this section, the strengthening of competition among air 
carriers operating in the United States to prevent unreasonable 
concentration in the air carrier industry.

Sec. 40102. Definitions

  (a) General Definitions.--In this part--
          (1) ``aeronautics'' means the science and art of 
        flight.
          (2) ``air carrier'' means a citizen of the United 
        States undertaking by any means, directly or 
        indirectly, to provide air transportation.
          (3) ``air commerce'' means foreign air commerce, 
        interstate air commerce, the transportation of mail by 
        aircraft, the operation of aircraft within the limits 
        of a Federal airway, or the operation of aircraft that 
        directly affects, or may endanger safety in, foreign or 
        interstate air commerce.
          (4) ``air navigation facility'' means a facility 
        used, available for use, or designed for use, in aid of 
        air navigation, including--
                  (A) a landing area;
                  (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;
                  (E) any structure, equipment, or mechanism 
                for guiding or controlling flight in the air or 
                the landing and takeoff of aircraft; and
                  (F) buildings, equipment, and systems 
                dedicated to the national airspace system.
          (5) ``air transportation'' means foreign air 
        transportation, interstate air transportation, or the 
        transportation of mail by aircraft.
          (6) ``aircraft'' means any contrivance invented, 
        used, or designed to navigate, or fly in, the air.
          (7) ``aircraft engine'' means an engine used, or 
        intended to be used, to propel an aircraft, including a 
        part, appurtenance, and accessory of the engine, except 
        a propeller.
          (8) ``airman'' means an individual--
                  (A) in command, or as pilot, mechanic, or 
                member of the crew, who navigates aircraft when 
                under way;
                  (B) except to the extent the Administrator of 
                the Federal Aviation Administration may provide 
                otherwise for individuals employed outside the 
                United States, who is directly in charge of 
                inspecting, maintaining, overhauling, or 
                repairing aircraft, aircraft engines, 
                propellers, or appliances; or
                  (C) who serves as an aircraft dispatcher or 
                air traffic control-tower operator.
          (9) ``airport'' means a landing area used regularly 
        by aircraft for receiving or discharging passengers or 
        cargo.
          (10) ``all-cargo air transportation'' means the 
        transportation by aircraft in interstate air 
        transportation of only property or only mail, or both.
          (11) ``appliance'' means an instrument, equipment, 
        apparatus, a part, an appurtenance, or an accessory 
        used, capable of being used, or intended to be used, in 
        operating or controlling aircraft in flight, including 
        a parachute, communication equipment, and another 
        mechanism installed in or attached to aircraft during 
        flight, and not a part of an aircraft, aircraft engine, 
        or propeller.
          (12) ``cargo'' means property, mail, or both.
          (13) ``charter air carrier'' means an air carrier 
        holding a certificate of public convenience and 
        necessity that authorizes it to provide charter air 
        transportation.
          (14) ``charter air transportation'' means charter 
        trips in air transportation authorized under this part.
          (15) ``citizen of the United States'' means--
                  (A) an individual who is a citizen of the 
                United States;
                  (B) a partnership each of whose partners is 
                an individual who is a citizen of the United 
                States; or
                  (C) a corporation or association organized 
                under the laws of the United States or a State, 
                the District of Columbia, or a territory or 
                possession of the United States, of which the 
                president and at least two-thirds of the board 
                of directors and other managing officers are 
                citizens of the United States, which is under 
                the actual control of citizens of the United 
                States, and in which at least 75 percent of the 
                voting interest is owned or controlled by 
                persons that are citizens of the United States.
          (16) ``civil aircraft'' means an aircraft except a 
        public aircraft.
          (17) ``civil aircraft of the United States'' means an 
        aircraft registered under chapter 441 of this title.
          (18) ``conditional sales contract'' means a 
        contract--
                  (A) for the sale of an aircraft, aircraft 
                engine, propeller, appliance, or spare part, 
                under which the buyer takes possession of the 
                property but title to the property vests in the 
                buyer at a later time on--
                          (i) paying any part of the purchase 
                        price;
                          (ii) performing another condition; or
                          (iii) the happening of a contingency; 
                        or
                  (B) to bail or lease an aircraft, aircraft 
                engine, propeller, appliance, or spare part, 
                under which the bailee or lessee--
                          (i) agrees to pay an amount 
                        substantially equal to the value of the 
                        property; and
                          (ii) is to become, or has the option 
                        of becoming, the owner of the property 
                        on complying with the contract.
          (19) ``conveyance'' means an instrument, including a 
        conditional sales contract, affecting title to, or an 
        interest in, property.
          (20) ``Federal airway'' means a part of the navigable 
        airspace that the Administrator designates as a Federal 
        airway.
          (21) ``foreign air carrier'' means a person, not a 
        citizen of the United States, undertaking by any means, 
        directly or indirectly, to provide foreign air 
        transportation.
          (22) ``foreign air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation, between a place in the United 
        States and a place outside the United States when any 
        part of the transportation or operation is by aircraft.
          (23) ``foreign air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft, between a place in 
        the United States and a place outside the United States 
        when any part of the transportation is by aircraft.
          (24) ``interstate air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation--
                  (A) between a place in--
                          (i) a State, territory, or possession 
                        of the United States and a place in the 
                        District of Columbia or another State, 
                        territory, or possession of the United 
                        States;
                          (ii) a State and another place in the 
                        same State through the airspace over a 
                        place outside the State;
                          (iii) the District of Columbia and 
                        another place in the District of 
                        Columbia; or
                          (iv) a territory or possession of the 
                        United States and another place in the 
                        same territory or possession; and
                  (B) when any part of the transportation or 
                operation is by aircraft.
          (25) ``interstate air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft--
                  (A) between a place in--
                          (i) a State, territory, or possession 
                        of the United States and a place in the 
                        District of Columbia or another State, 
                        territory, or possession of the United 
                        States;
                          (ii) Hawaii and another place in 
                        Hawaii through the airspace over a 
                        place outside Hawaii;
                          (iii) the District of Columbia and 
                        another place in the District of 
                        Columbia; or
                          (iv) a territory or possession of the 
                        United States and another place in the 
                        same territory or possession; and
                  (B) when any part of the transportation is by 
                aircraft.
          (26) ``intrastate air carrier'' means a citizen of 
        the United States undertaking by any means to provide 
        only intrastate air transportation.
          (27) ``intrastate air transportation'' means the 
        transportation by a common carrier of passengers or 
        property for compensation, entirely in the same State, 
        by turbojet-powered aircraft capable of carrying at 
        least 30 passengers.
          (28) ``landing area'' means a place on land or water, 
        including an airport or intermediate landing field, 
        used, or intended to be used, for the takeoff and 
        landing of aircraft, even when facilities are not 
        provided for sheltering, servicing, or repairing 
        aircraft, or for receiving or discharging passengers or 
        cargo.
          (29) ``large hub airport'' means a commercial service 
        airport (as defined in section 47102) that has at least 
        1.0 percent of the passenger boardings.
          (30) ``mail'' means United States mail and foreign 
        transit mail.
          (31) ``medium hub airport'' means a commercial 
        service airport (as defined in section 47102) that has 
        at least 0.25 percent but less than 1.0 percent of the 
        passenger boardings.
          (32) ``navigable airspace'' means airspace above the 
        minimum altitudes of flight prescribed by regulations 
        under this subpart and subpart III of this part, 
        including airspace needed to ensure safety in the 
        takeoff and landing of aircraft.
          (33) ``navigate aircraft'' and ``navigation of 
        aircraft'' include piloting aircraft.
          (34) ``nonhub airport'' means a commercial service 
        airport (as defined in section 47102) that has less 
        than 0.05 percent of the passenger boardings.
          (35) ``operate aircraft'' and ``operation of 
        aircraft'' mean using aircraft for the purposes of air 
        navigation, including--
                  (A) the navigation of aircraft; and
                  (B) causing or authorizing the operation of 
                aircraft with or without the right of legal 
                control of the aircraft.
          (36) ``passenger boardings''--
                  (A) means, unless the context indicates 
                otherwise, revenue passenger boardings in the 
                United States in the prior calendar year on an 
                aircraft in service in air commerce, as the 
                Secretary determines under regulations the 
                Secretary prescribes; and
                  (B) includes passengers who continue on an 
                aircraft in international flight that stops at 
                an airport in the 48 contiguous States, Alaska, 
                or Hawaii for a nontraffic purpose.
          (37) ``person'', in addition to its meaning under 
        section 1 of title 1, includes a governmental authority 
        and a trustee, receiver, assignee, and other similar 
        representative.
          (38) ``predatory'' means a practice that violates the 
        antitrust laws as defined in the first section of the 
        Clayton Act (15 U.S.C. 12).
          (39) ``price'' means a rate, fare, or charge.
          (40) ``propeller'' includes a part, appurtenance, and 
        accessory of a propeller.
          (41) ``public aircraft'' means any of the following:
                  (A) Except with respect to an aircraft 
                described in subparagraph (E), an aircraft used 
                only for the United States Government, except 
                as provided in section 40125(b).
                  (B) An aircraft owned by the Government and 
                operated by any person for purposes related to 
                crew training, equipment development, or 
                demonstration, except as provided in section 
                40125(b).
                  (C) An aircraft owned and operated by the 
                government of a State, the District of 
                Columbia, or a territory or possession of the 
                United States or a political subdivision of one 
                of these governments, except as provided in 
                section 40125(b).
                  (D) An aircraft exclusively leased for at 
                least 90 continuous days by the government of a 
                State, the District of Columbia, or a territory 
                or possession of the United States or a 
                political subdivision of one of these 
                governments, except as provided in section 
                40125(b).
                  (E) An aircraft owned or operated by the 
                armed forces or chartered to provide 
                transportation or other commercial air service 
                to the armed forces under the conditions 
                specified by section 40125(c). In the preceding 
                sentence, the term ``other commercial air 
                service'' means an aircraft operation that (i) 
                is within the United States territorial 
                airspace; (ii) the Administrator of the Federal 
                Aviation Administration determines is available 
                for compensation or hire to the public, and 
                (iii) must comply with all applicable civil 
                aircraft rules under title 14, Code of Federal 
                Regulations.
                  (F) An unmanned aircraft that is owned and 
                operated by, or exclusively leased for at least 
                90 continuous days by, an Indian Tribal 
                government, as defined in section 102 of the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5122), 
                except as provided in section 40125(b).
          (42) ``small hub airport'' means a commercial service 
        airport (as defined in section 47102) that has at least 
        0.05 percent but less than 0.25 percent of the 
        passenger boardings.
          (43) ``spare part'' means an accessory, appurtenance, 
        or part of an aircraft (except an aircraft engine or 
        propeller), aircraft engine (except a propeller), 
        propeller, or appliance, that is to be installed at a 
        later time in an aircraft, aircraft engine, propeller, 
        or appliance.
          (44) ``State authority'' means an authority of a 
        State designated under State law--
                  (A) to receive notice required to be given a 
                State authority under subpart II of this part; 
                or
                  (B) as the representative of the State before 
                the Secretary of Transportation in any matter 
                about which the Secretary is required to 
                consult with or consider the views of a State 
                authority under subpart II of this part.
          (45) ``ticket agent'' means a person (except an air 
        carrier, a foreign air carrier, or an employee of an 
        air carrier or foreign air carrier) that as a principal 
        or agent sells, offers for sale, negotiates for, or 
        holds itself out as selling, providing, or arranging 
        for, air transportation.
          (46) ``United States'' means the States of the United 
        States, the District of Columbia, and the territories 
        and possessions of the United States, including the 
        territorial sea and the overlying airspace.
          (47) ``air traffic control system'' means the 
        combination of elements used to safely and efficiently 
        monitor, direct, control, and guide aircraft in the 
        United States and United States-assigned airspace, 
        including--
                  (A) allocated electromagnetic spectrum and 
                physical, real, personal, and intellectual 
                property assets making up facilities, 
                equipment, and systems employed to detect, 
                track, and guide aircraft movement;
                  (B) laws, regulations, orders, directives, 
                agreements, and licenses;
                  (C) published procedures that explain 
                required actions, activities, and techniques 
                used to ensure adequate aircraft separation; 
                and
                  (D) trained personnel with specific technical 
                capabilities to satisfy the operational, 
                engineering, management, and planning 
                requirements for air traffic control.
          (48) ``American Air Navigation Services Corporation'' 
        means the American Air Navigation Services Corporation 
        established by subtitle XI.
          (49) ``flag of convenience carrier'' means a foreign 
        air carrier that is established in a country other than 
        the home country of its majority owner or owners in 
        order to avoid regulations of the home country.
  (b) Limited Definition.--In subpart II of this part, 
``control'' means control by any means.

Sec. 40103. Sovereignty and use of airspace

  (a) Sovereignty and Public Right of Transit.--(1) The United 
States Government has exclusive sovereignty of airspace of the 
United States.
  (2) A citizen of the United States has a public right of 
transit through the navigable airspace. To further that right, 
the Secretary of Transportation shall consult with the 
Architectural and Transportation Barriers Compliance Board 
established under section 502 of the Rehabilitation Act of 1973 
(29 U.S.C. 792) before prescribing a regulation or issuing an 
order or procedure that will have a significant impact on the 
accessibility of commercial airports or commercial air 
transportation for handicapped individuals.
  (b) Use of Airspace.--(1) [The Administrator] Before the date 
of transfer (as defined in section 90101(a)), the Administrator 
of the Federal Aviation Administration shall develop plans and 
policy for the use of the navigable airspace and assign by 
regulation or order the use of the airspace necessary to ensure 
the safety of aircraft and the efficient use of airspace. [The 
Administrator] Before the date of transfer (as defined in 
section 90101(a)), the Administrator may modify or revoke an 
assignment when required in the public interest.
  [(2) The Administrator shall prescribe air traffic 
regulations on the flight of aircraft (including regulations on 
safe altitudes) for--
          [(A) navigating, protecting, and identifying 
        aircraft;
          [(B) protecting individuals and property on the 
        ground;
          [(C) using the navigable airspace efficiently; and
          [(D) preventing collision between aircraft, between 
        aircraft and land or water vehicles, and between 
        aircraft and airborne objects.]
  (2) The Administrator shall--
          (A) before the date of transfer (as defined in 
        section 90101(a)), prescribe air traffic regulations on 
        the flight of aircraft (including regulations on safe 
        altitudes) for--
                  (i) navigating, protecting, and identifying 
                aircraft;
                  (ii) protecting individuals and property on 
                the ground;
                  (iii) using the navigable airspace 
                efficiently; and
                  (iv) preventing collisions between aircraft, 
                between aircraft and land or water vehicles, 
                and between aircraft and airborne objects; and
          (B) on and after the date of transfer (as defined in 
        section 90101(a)), prescribe safety regulations on the 
        flight of aircraft (including regulations on safe 
        altitudes) for--
                  (i) navigating, protecting, and identifying 
                aircraft;
                  (ii) protecting individuals and property on 
                the ground;
                  (iii) ensuring equitable access to and use of 
                airspace; and
                  (iv) preventing collisions between aircraft, 
                between aircraft and land or water vehicles, 
                and between aircraft and airborne objects.
  (3) To establish security provisions that will encourage and 
allow maximum use of the navigable airspace by civil aircraft 
consistent with national security, the [Administrator] 
Secretary , in consultation with the Secretary of Defense, 
shall--
          (A) establish areas in the airspace the 
        [Administrator] Secretary decides are necessary in the 
        interest of national defense; and
          (B) by regulation or order, restrict or prohibit 
        flight of civil aircraft that the [Administrator] 
        Secretary cannot identify, locate, and control with 
        available facilities in those areas.
  (4) Notwithstanding the military exception in section 
553(a)(1) of title 5, subchapter II of chapter 5 of title 5 
applies to a regulation prescribed under this subsection.
  (c) Foreign Aircraft.--A foreign aircraft, not part of the 
armed forces of a foreign country, may be navigated in the 
United States as provided in section 41703 of this title.
  (d) Aircraft of Armed Forces of Foreign Countries.--Aircraft 
of the armed forces of a foreign country may be navigated in 
the United States only when authorized by the Secretary of 
State.
  (e) No Exclusive Rights at Certain Facilities.--A person does 
not have an exclusive right to use an air navigation facility 
on which Government money has been expended. However, providing 
services at an airport by only one fixed-based operator is not 
an exclusive right if--
          (1) it is unreasonably costly, burdensome, or 
        impractical for more than one fixed-based operator to 
        provide the services; and
          (2) allowing more than one fixed-based operator to 
        provide the services requires a reduction in space 
        leased under an agreement existing on September 3, 
        1982, between the operator and the airport.

Sec. 40104. Promotion of civil aeronautics and safety of air commerce

  (a) Developing Civil Aeronautics and Safety of Air 
Commerce.--The Administrator of the Federal Aviation 
Administration shall encourage the development of civil 
aeronautics and safety of air commerce in and outside the 
United States. In carrying out this subsection, the 
Administrator shall take action that the Administrator 
considers necessary to establish, within available resources, a 
program to distribute civil aviation information in each region 
served by the Administration. The program shall provide, on 
request, informational material and expertise on civil aviation 
to State and local school administrators, college and 
university officials, and officers of other interested 
organizations.
  (b) International Role of the FAA.--The Administrator shall 
promote and achieve global improvements in the safety, 
efficiency, and environmental effect of air travel by 
exercising leadership with the Administrator's foreign 
counterparts, in the International Civil Aviation Organization 
and its subsidiary organizations, and other international 
organizations and fora, and with the private sector.
  (c) Airport Capacity Enhancement Projects at Congested 
Airports.--In carrying out subsection (a), the Administrator 
shall take action to encourage the construction of airport 
capacity enhancement projects at congested airports as those 
terms are defined in [section 47176] section 47175 .
  (d) Promotion of United States Aerospace Standards, Products, 
and Services Abroad.--The Administrator shall take appropriate 
actions to--
          (1) promote United States aerospace safety standards 
        abroad;
          (2) facilitate and vigorously defend approvals of 
        United States aerospace products and services abroad;
          (3) with respect to bilateral partners, utilize 
        bilateral safety agreements and other mechanisms to 
        improve validation of United States type certificated 
        aeronautical products and appliances and enhance mutual 
        acceptance in order to eliminate redundancies and 
        unnecessary costs; and
          (4) with respect to foreign safety authorities, 
        streamline validation and coordination processes.

           *       *       *       *       *       *       *

Sec. 40106. Emergency powers

  (a) Deviations From Regulations.--Appropriate military 
authority may authorize aircraft of the armed forces of the 
United States to deviate from [air traffic] regulations 
prescribed under section 40103(b)(1) and (2) of this title when 
the authority decides the deviation is essential to the 
national defense because of a military emergency or urgent 
military necessity. The authority shall--
          (1) give the Administrator of the Federal Aviation 
        Administration and the American Air Navigation Services 
        Corporation prior notice of the deviation at the 
        earliest practicable time; and
          (2) to the extent time and circumstances allow, make 
        every reasonable effort to consult with the 
        Administrator and the American Air Navigation Services 
        Corporation and arrange for the deviation in advance on 
        a mutually agreeable basis.
  (b) Suspension of Authority.--(1) When the President decides 
that the government of a foreign country is acting 
inconsistently with the Convention for the Suppression of 
Unlawful Seizure of Aircraft or that the government of a 
foreign country allows territory under its jurisdiction to be 
used as a base of operations or training of, or as a sanctuary 
for, or arms, aids, or abets, a terrorist organization that 
knowingly uses the unlawful seizure, or the threat of an 
unlawful seizure, of an aircraft as an instrument of policy, 
the President may suspend the authority of--
          (A) an air carrier or foreign air carrier to provide 
        foreign air transportation to and from that foreign 
        country;
          (B) a person to operate aircraft in foreign air 
        commerce to and from that foreign country;
          (C) a foreign air carrier to provide foreign air 
        transportation between the United States and another 
        country that maintains air service with the foreign 
        country; and
          (D) a foreign person to operate aircraft in foreign 
        air commerce between the United States and another 
        country that maintains air service with the foreign 
        country.
  (2) The President may act under this subsection without 
notice or a hearing. The suspension remains in effect for as 
long as the President decides is necessary to ensure the 
security of aircraft against unlawful seizure. Notwithstanding 
section 40105(b) of this title, the authority of the President 
to suspend rights under this subsection is a condition to a 
certificate of public convenience and necessity, air carrier 
operating certificate, foreign air carrier or foreign aircraft 
permit, or foreign air carrier operating specification issued 
by the Secretary of Transportation under this part.
  (3) An air carrier or foreign air carrier may not provide 
foreign air transportation, and a person may not operate 
aircraft in foreign air commerce, in violation of a suspension 
of authority under this subsection.

Sec. 40107. Presidential transfers

  (a) General Authority.--The President may transfer to the 
Administrator of the Federal Aviation Administration a duty, 
power, activity, or facility of a department, agency, or 
instrumentality of the executive branch of the United States 
Government, or an officer or unit of a department, agency, or 
instrumentality of the executive branch, related primarily to 
selecting, developing, testing, evaluating, establishing, 
operating, or maintaining a system, procedure, facility, or 
device for safe and efficient air navigation and air traffic 
control. In making a transfer, the President may transfer 
records and property and make officers and employees from the 
department, agency, instrumentality, or unit available to the 
Administrator.
  [(b) During War.--If war occurs, the President by executive 
order may transfer to the Secretary of Defense a duty, power, 
activity, or facility of the Administrator. In making the 
transfer, the President may transfer records, property, 
officers, and employees of the Administration to the Department 
of Defense.]
  (b) During War.--If war occurs, the President by Executive 
order may temporarily transfer to the Secretary of Defense a 
duty, power, activity, or facility of the Administrator or the 
American Air Navigation Services Corporation. In making the 
transfer, the President may temporarily transfer records, 
property, officers, and employees of the Administration or the 
American Air Navigation Services Corporation to the Department 
of Defense.

           *       *       *       *       *       *       *

Sec. 40109. Authority to exempt

  (a) Air Carriers and Foreign Air Carriers Not Engaged 
Directly in Operating Aircraft.--(1) The Secretary of 
Transportation may exempt from subpart II of this part--
          (A) an air carrier not engaged directly in operating 
        aircraft in air transportation; or
          (B) a foreign air carrier not engaged directly in 
        operating aircraft in foreign air transportation.
  (2) The exemption is effective to the extent and for periods 
that the Secretary decides are in the public interest.
  (b) Safety Regulation.--The Administrator of the Federal 
Aviation Administration may grant an exemption from a 
regulation prescribed in carrying out sections 40103(b)(1) and 
(2), 40119, 44901, 44903, 44906, and 44935-44937 of this title 
when the Administrator decides the exemption is in the public 
interest.
  (c) Other Economic Regulation.--Except as provided in this 
section, the Secretary may exempt to the extent the Secretary 
considers necessary a person or class of persons from a 
provision of chapter 411, chapter 413 (except sections 41307 
and 41310(b)-(f)), chapter 415 (except sections 41502, 41505, 
and 41507-41509), chapter 417 (except sections 41703, 41704, 
41710, 41713, and 41714), chapter 419, subchapter II of chapter 
421, and sections 44909 and 46301(b) of this title, or a 
regulation or term prescribed under any of those provisions, 
when the Secretary decides that the exemption is consistent 
with the public interest.
  (d) Labor Requirements.--The Secretary may not exempt an air 
carrier from section 42112 of this title. However, the 
Secretary may exempt from section 42112(b)(1) and (2) an air 
carrier not providing scheduled air transportation, and the 
operations conducted during daylight hours by an air carrier 
providing scheduled air transportation, when the Secretary 
decides that--
          (1) because of the limited extent of, or unusual 
        circumstances affecting, the operation of the air 
        carrier, the enforcement of section 42112(b)(1) and (2) 
        of this title is or would be an unreasonable burden on 
        the air carrier that would obstruct its development and 
        prevent it from beginning or continuing operations; and
          (2) the exemption would not affect adversely the 
        public interest.
  (e) Maximum Flying Hours.--The Secretary may not exempt an 
air carrier under this section from a provision referred to in 
subsection (c) of this section, or a regulation or term 
prescribed under any of those provisions, that sets maximum 
flying hours for pilots or copilots.
  (f) Smaller Aircraft.--(1) An air carrier is exempt from 
section 41101(a)(1) of this title, and the Secretary may exempt 
an air carrier from another provision of subpart II of this 
part, if the air carrier--
          (A)(i) provides passenger transportation only with 
        aircraft having a maximum capacity of 55 passengers; or
          (ii) provides the transportation of cargo only with 
        aircraft having a maximum payload of less than 18,000 
        pounds; and
          (B) complies with liability insurance requirements 
        and other regulations the Secretary prescribes.
  (2) The Secretary may increase the passenger or payload 
capacities when the public interest requires.
  (3)(A) An exemption under this subsection applies to an air 
carrier providing air transportation between 2 places in 
Alaska, or between Alaska and Canada, only if the carrier is 
authorized by Alaska to provide the transportation.
  (B) The Secretary may limit the number or location of places 
that may be served by an air carrier providing transportation 
only in Alaska under an exemption from section 41101(a)(1) of 
this title, or the frequency with which the transportation may 
be provided, only when the Secretary decides that providing the 
transportation substantially impairs the ability of an air 
carrier holding a certificate issued by the Secretary to 
provide its authorized transportation, including the minimum 
transportation requirement for Alaska specified under section 
41732(b)(1)(B) of this title.
  (g) Emergency Air Transportation by Foreign Air Carriers.--
(1) To the extent that the Secretary decides an exemption is in 
the public interest, the Secretary may exempt by order a 
foreign air carrier from the requirements and limitations of 
this part for not more than 30 days to allow the foreign air 
carrier to carry passengers or cargo in interstate air 
transportation in certain markets if the Secretary finds that--
          (A) because of an emergency created by unusual 
        circumstances not arising in the normal course of 
        business, air carriers holding certificates under 
        section 41102 of this title cannot accommodate traffic 
        in those markets;
          (B) all possible efforts have been made to 
        accommodate the traffic by using the resources of the 
        air carriers, including the use of--
                  (i) foreign aircraft, or sections of foreign 
                aircraft, under lease or charter to the air 
                carriers; and
                  (ii) the air carriers' reservations systems 
                to the extent practicable;
          (C) the exemption is necessary to avoid unreasonable 
        hardship for the traffic in the markets that cannot be 
        accommodated by the air carriers; and
          (D) granting the exemption will not result in an 
        unreasonable advantage to any party in a labor dispute 
        where the inability to accommodate traffic in a market 
        is a result of the dispute.
  (2) When the Secretary grants an exemption to a foreign air 
carrier under this subsection, the Secretary shall--
          (A) ensure that air transportation that the foreign 
        air carrier provides under the exemption is made 
        available on reasonable terms;
          (B) monitor continuously the passenger load factor of 
        air carriers in the market that hold certificates under 
        section 41102 of this title; and
          [(C) review the exemption at least every 30 days to 
        ensure that the unusual circumstances that established 
        the need for the exemption still exist.]
          (C) review the exemption at least every 30 days (or, 
        in the case of an exemption that is necessary to 
        provide and sustain air transportation in American 
        Samoa between the islands of Tutuila and Manu'a, at 
        least every 180 days) to ensure that the unusual 
        circumstances that established the need for the 
        exemption still exist.
  [(3) The Secretary may renew an exemption (including 
renewals) under this subsection for not more than 30 days. An 
exemption may continue for not more than 5 days after the 
unusual circumstances that established the need for the 
exemption cease.]
          (3) Renewal of exemptions.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the Secretary may renew an 
                exemption (including renewals) under this 
                subsection for not more than 30 days.
                  (B) Exception.--The Secretary may renew an 
                exemption (including renewals) under this 
                subsection that is necessary to provide and 
                sustain air transportation in American Samoa 
                between the islands of Tutuila and Manu'a for 
                not more than 180 days.
          (4) Continuation of exemptions.--An exemption granted 
        by the Secretary under this subsection may continue for 
        not more than 5 days after the unusual circumstances 
        that established the need for the exemption cease.
  (h) Notice and Opportunity for Hearing.--The Secretary may 
act under subsections (d) and (f)(3)(B) of this section only 
after giving the air carrier notice and an opportunity for a 
hearing.

Sec. 40110. General procurement authority

  (a) General.--In carrying out this part, the Administrator of 
the Federal Aviation Administration--
          (1) to the extent that amounts are available for 
        obligation, may acquire services or, by condemnation or 
        otherwise, an interest in property, including an 
        interest in airspace immediately adjacent to and needed 
        for airports and other air navigation facilities owned 
        by the United States Government and operated by the 
        Administrator;
          (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.
  (b) Purchase of Housing Units.--
          (1) Authority.--In carrying out this part, the 
        Administrator may purchase a housing unit (including a 
        condominium or a housing unit in a building owned by a 
        cooperative) that is located outside the contiguous 
        United States if the cost of the unit is $300,000 or 
        less.
          (2) Adjustments for inflation.--For fiscal years 
        beginning after September 30, 1997, the Administrator 
        may adjust the dollar amount specified in paragraph (1) 
        to take into account increases in local housing costs.
          (3) Continuing obligations.--Notwithstanding section 
        1341 of title 31, the Administrator may purchase a 
        housing unit under paragraph (1) even if there is an 
        obligation thereafter to pay necessary and reasonable 
        fees duly assessed upon such unit, including fees 
        related to operation, maintenance, taxes, and 
        insurance.
          (4) Certification to Congress.--The Administrator may 
        purchase a housing unit under paragraph (1) only if, at 
        least 30 days before completing the purchase, the 
        Administrator transmits 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 description of the housing unit and its 
                price;
                  (B) a certification that the price does not 
                exceed the median price of housing units in the 
                area; and
                  (C) a certification that purchasing the 
                housing unit is the most cost-beneficial means 
                of providing necessary accommodations in 
                carrying out this part.
          (5) Payment of fees.--The Administrator may pay, when 
        due, fees resulting from the purchase of a housing unit 
        under this subsection from any amounts made available 
        to the Administrator.
  (c) Duties and Powers.--When carrying out subsection (a) of 
this section, the Administrator of the Federal Aviation 
Administration may--
          (1) notwithstanding section 1341(a)(1) of title 31, 
        lease an interest in property for not more than 20 
        years;
          (2) consider the reasonable probable future use of 
        the underlying land in making an award for a 
        condemnation of an interest in airspace;
          (3) construct, or acquire an interest in, a public 
        building (as defined in section 3301(a) of title 40) 
        only under a delegation of authority from the 
        Administrator of General Services; and
          (4) dispose of property under subsection (a)(2) of 
        this section, except for airport and airway property 
        and technical equipment used for the special purposes 
        of the Administration, only under sections 121, 123, 
        and 126 and chapter 5 of title 40.
  (d) Acquisition Management System.--
          (1) In general.--In consultation with such non-
        governmental experts in acquisition management systems 
        as the Administrator may employ, and notwithstanding 
        provisions of Federal acquisition law, the 
        Administrator shall develop and implement an 
        acquisition management system for the Administration 
        that addresses the unique needs of the agency and, at a 
        minimum, provides for--
                  (A) more timely and cost-effective 
                acquisitions of equipment, services, property, 
                and materials; and
                  (B) the resolution of bid protests and 
                contract disputes related thereto, using 
                consensual alternative dispute resolution 
                techniques to the maximum extent practicable.
          (2) Applicability of federal acquisition law.--The 
        following provisions of Federal acquisition law shall 
        not apply to the new acquisition management system 
        developed and implemented pursuant to paragraph (1):
                  (A) Division C (except sections 3302, 
                3501(b), 3509, 3906, 4710, and 4711) of 
                subtitle I of title 41.
                  (B) Division B (except sections 1704 and 
                2303) of subtitle I of title 41.
                  (C) The Federal Acquisition Streamlining Act 
                of 1994 (Public Law 103-355). However, section 
                4705 of title 41 shall apply to the new 
                acquisition management system developed and 
                implemented pursuant to paragraph (1). For the 
                purpose of applying section 4705 of title 41 to 
                the system, the term ``executive agency'' is 
                deemed to refer to the Federal Aviation 
                Administration.
                  (D) The Small Business Act (15 U.S.C. 631 et 
                seq.), except that all reasonable opportunities 
                to be awarded contracts shall be provided to 
                small business concerns and small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals.
                  (E) The Competition in Contracting Act.
                  (F) Subchapter V of chapter 35 of title 31, 
                relating to the procurement protest system.
                  (G) The Federal Acquisition Regulation and 
                any laws not listed in subparagraphs (A) 
                through (F) providing authority to promulgate 
                regulations in the Federal Acquisition 
                Regulation.
          (3) Certain provisions of division B (except sections 
        1704 and 2303) of subtitle I of title 41.--
        Notwithstanding paragraph (2)(B), chapter 21 of title 
        41 shall apply to the new acquisition management system 
        developed and implemented under paragraph (1) with the 
        following modifications:
                  (A) Sections 2101 and 2106 of title 41 shall 
                not apply.
                  (B) Within 90 days after the date of the 
                enactment of the Wendell H. Ford Aviation 
                Investment and Reform Act for the 21st Century, 
                the Administrator shall adopt definitions for 
                the acquisition management system that are 
                consistent with the purpose and intent of the 
                Office of Federal Procurement Policy Act.
                  (C) After the adoption of those definitions, 
                the criminal, civil, and administrative 
                remedies provided under the Office of Federal 
                Procurement Policy Act apply to the acquisition 
                management system.
                  (D) In the administration of the acquisition 
                management system, the Administrator may take 
                adverse personnel action under section 
                27(e)(3)(A)(iv) of the Office of Federal 
                Procurement Policy Act in accordance with the 
                procedures contained in the Administration's 
                personnel management system.
          (4) Adjudication of certain bid protests and contract 
        disputes.--A bid protest or contract dispute that is 
        not addressed or resolved through alternative dispute 
        resolution shall be adjudicated by the Administrator 
        through Dispute Resolution Officers or Special Masters 
        of the Federal Aviation Administration Office of 
        Dispute Resolution for Acquisition, acting pursuant to 
        sections 46102, 46104, 46105, 46106 and 46107 and shall 
        be subject to judicial review under section 46110 and 
        to section 504 of title 5.
          (5) Annual report on the purchase of foreign 
        manufactured articles.--
                  (A) Report.--Not later than 90 days after the 
                end of the fiscal year, the Secretary of 
                Transportation shall submit a report to 
                Congress on the dollar amount of the 
                acquisitions made by the agency from entities 
                that manufacture the articles, materials, or 
                supplies outside of the United States in such 
                fiscal year.
                  (B) Contents.--The report required by 
                subparagraph (A) shall separately indicate--
                          (i) the dollar value of any articles, 
                        materials, or supplies purchased that 
                        were manufactured outside of the United 
                        States; and
                          (ii) a summary of the total 
                        procurement funds spent on goods 
                        manufactured in the United States 
                        versus funds spent on goods 
                        manufactured outside of the United 
                        States.
                  (C) Availability of report.--The Secretary 
                shall make the report under subparagraph (A) 
                publicly available on the agency's website not 
                later than 30 days after submission to 
                Congress.
  (e) Prohibition on Release of Offeror Proposals.--
          (1) General rule.--Except as provided in paragraph 
        (2), a proposal in the possession or control of the 
        Administrator may not be made available to any person 
        under section 552 of title 5.
          (2) Exception.--Paragraph (1) shall not apply to any 
        portion of a proposal of an offeror the disclosure of 
        which is authorized by the Administrator pursuant to 
        procedures published in the Federal Register. The 
        Administrator shall provide an opportunity for public 
        comment on the procedures for a period of not less than 
        30 days beginning on the date of such publication in 
        order to receive and consider the views of all 
        interested parties on the procedures. The procedures 
        shall not take effect before the 60th day following the 
        date of such publication.
          (3) Proposal defined.--In this subsection, the term 
        ``proposal'' means information contained in or 
        originating from any proposal, including a technical, 
        management, or cost proposal, submitted by an offeror 
        in response to the requirements of a solicitation for a 
        competitive proposal.

           *       *       *       *       *       *       *

Sec. 40116. State taxation

  (a) Definition.--In this section, ``State'' includes the 
District of Columbia, a territory or possession of the United 
States, and a political authority of at least 2 States.
  (b) Prohibitions.--Except as provided in subsection (c) of 
this section and section 40117 of this title, a State, a 
political subdivision of a State, and any person that has 
purchased or leased an airport under section 47134 of this 
title may not levy or collect a tax, fee, head charge, or other 
charge on--
          (1) an individual traveling in air commerce;
          (2) the transportation of an individual traveling in 
        air commerce;
          (3) the sale of air transportation; or
          (4) the gross receipts from that air commerce or 
        transportation.
  (c) Aircraft Taking Off or Landing in State.--A State or 
political subdivision of a State may levy or collect a tax on 
or related to a flight of a commercial aircraft or an activity 
or service on the aircraft only if the aircraft takes off or 
lands in the State or political subdivision as part of the 
flight.
  (d) Unreasonable Burdens and Discrimination Against 
Interstate Commerce.--(1) In this subsection--
          (A) ``air carrier transportation property'' means 
        property (as defined by the Secretary of 
        Transportation) that an air carrier providing air 
        transportation owns or uses.
          (B) ``assessment'' means valuation for a property tax 
        levied by a taxing district.
          (C) ``assessment jurisdiction'' means a geographical 
        area in a State used in determining the assessed value 
        of property for ad valorem taxation.
          (D) ``commercial and industrial property'' means 
        property (except transportation property and land used 
        primarily for agriculture or timber growing) devoted to 
        a commercial or industrial use and subject to a 
        property tax levy.
  (2)(A) A State, political subdivision of a State, or 
authority acting for a State or political subdivision may not 
do any of the following acts because those acts unreasonably 
burden and discriminate against interstate commerce:
          (i) assess air carrier transportation property at a 
        value that has a higher ratio to the true market value 
        of the property than the ratio that the assessed value 
        of other commercial and industrial property of the same 
        type in the same assessment jurisdiction has to the 
        true market value of the other commercial and 
        industrial property.
          (ii) levy or collect a tax on an assessment that may 
        not be made under clause (i) of this subparagraph.
          (iii) levy or collect an ad valorem property tax on 
        air carrier transportation property at a tax rate 
        greater than the tax rate applicable to commercial and 
        industrial property in the same assessment 
        jurisdiction.
          (iv) levy or collect a tax, fee, or charge, first 
        taking effect after August 23, 1994, exclusively upon 
        any business located at a commercial service airport or 
        operating as a permittee of such an airport other than 
        a tax, fee, or charge wholly utilized for airport or 
        aeronautical purposes.
          (v) except as otherwise provided under section 47133, 
        levy or collect a tax, fee, or charge, first taking 
        effect after the date of enactment of this clause, upon 
        any business located at a commercial service airport or 
        operating as a permittee of such an airport that is not 
        generally imposed on sales or services by that State, 
        political subdivision, or authority unless wholly 
        utilized for airport or aeronautical purposes.
  (B) Subparagraph (A) of this paragraph does not apply to an 
in lieu tax completely used for airport and aeronautical 
purposes.
  (e) Other Allowable Taxes and Charges.--Except as provided in 
subsection (d) of this section, a State or political 
subdivision of a State may levy or collect--
          (1) taxes (except those taxes enumerated in 
        subsection (b) of this section), including property 
        taxes, net income taxes, franchise taxes, and sales or 
        use taxes on the sale of goods or services; and
          (2) reasonable rental charges, landing fees, and 
        other service charges from aircraft operators for using 
        airport facilities of an airport owned or operated by 
        that State or subdivision.
  (f) Pay of Air Carrier Employees.--(1) In this subsection--
          (A) ``pay'' means money received by an employee for 
        services.
          (B) ``State'' means a State of the United States, the 
        District of Columbia, and a territory or possession of 
        the United States.
          (C) an employee is deemed to have earned 50 percent 
        of the employee's pay in a State or political 
        subdivision of a State in which the scheduled flight 
        time of the employee in the State or subdivision is 
        more than 50 percent of the total scheduled flight time 
        of the employee when employed during the calendar year.
  (2) The pay of an employee of an air carrier having regularly 
assigned duties on aircraft in at least 2 States is subject to 
the income tax laws of only the following:
          (A) the State or political subdivision of the State 
        that is the residence of the employee.
          (B) the State or political subdivision of the State 
        in which the employee earns more than 50 percent of the 
        pay received by the employee from the carrier.
  (3) Compensation paid by an air carrier to an employee 
described in subsection (a) in connection with such employee's 
authorized leave or other authorized absence from regular 
duties on the carrier's aircraft in order to perform services 
on behalf of the employee's airline union shall be subject to 
the income tax laws of only the following:
          (A) The State or political subdivision of the State 
        that is the residence of the employee.
          (B) The State or political subdivision of the State 
        in which the employee's scheduled flight time would 
        have been more than 50 percent of the employee's total 
        scheduled flight time for the calendar year had the 
        employee been engaged full time in the performance of 
        regularly assigned duties on the carrier's aircraft.

Sec. 40117. Passenger facility charges

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Airport, commercial service airport, and public 
        agency.--The terms ``airport'', ``commercial service 
        airport'', and ``public agency'' have the meaning those 
        terms have under section 47102.
          (2) Eligible agency.--The term ``eligible agency'' 
        means a public agency that controls a commercial 
        service airport.
          (3) Eligible airport-related project.--The term 
        ``eligible airport-related project'' means any of the 
        following projects:
                  (A) A project for airport development or 
                airport planning under subchapter I of chapter 
                471.
                  (B) A project for terminal development 
                described in section 47119(a).
                  (C) A project for costs of terminal 
                development referred to in subparagraph (B) 
                incurred after August 1, 1986, at an airport 
                that did not have more than .25 percent of the 
                total annual passenger boardings in the United 
                States in the most recent calendar year for 
                which data is available and at which total 
                passenger boardings declined by at least 16 
                percent between calendar year 1989 and calendar 
                year 1997.
                  (D) A project for airport noise capability 
                planning under section 47505.
                  (E) A project to carry out noise 
                compatibility measures eligible for assistance 
                under section 47504, whether or not a program 
                for those measures has been approved under 
                section 47504.
                  (F) A project for constructing gates and 
                related areas at which passengers board or exit 
                aircraft. In the case of a project required to 
                enable additional air service by an air carrier 
                with less than 50 percent of the annual 
                passenger boardings at an airport, the project 
                for constructing gates and related areas may 
                include structural foundations and floor 
                systems, exterior building walls and load-
                bearing interior columns or walls, windows, 
                door and roof systems, building utilities 
                (including heating, air conditioning, 
                ventilation, plumbing, and electrical service), 
                and aircraft fueling facilities adjacent to the 
                gate.
                  (G) A project for converting vehicles and 
                ground support equipment used at a commercial 
                service airport to low-emission technology (as 
                defined in section 47102) or to use cleaner 
                burning conventional fuels, retrofitting of any 
                such vehicles or equipment that are powered by 
                a diesel or gasoline engine with emission 
                control technologies certified or verified by 
                the Environmental Protection Agency to reduce 
                emissions, or acquiring for use at a commercial 
                service airport vehicles and ground support 
                equipment that include low-emission technology 
                or use cleaner burning fuels if the airport is 
                located in an air quality nonattainment area 
                (as defined in section 171(2) of the Clean Air 
                Act (42 U.S.C. 7501(2))) or a maintenance area 
                referred to in section 175A of such Act (42 
                U.S.C. 7505a) and if such project will result 
                in an airport receiving appropriate emission 
                credits as described in section 47139.
                  (H) A project for--
                          (i) converting or retrofitting 
                        vehicles and ground support equipment 
                        into eligible zero-emission vehicles 
                        and equipment (as defined in section 
                        47102); or
                          (ii) acquiring, by purchase or lease, 
                        eligible zero-emission vehicles and 
                        equipment (as defined in section 
                        47102).
          (4) Ground support equipment.--The term ``ground 
        support equipment'' means service and maintenance 
        equipment used at an airport to support aeronautical 
        operations and related activities.
          (5) Passenger facility charge.--The term ``passenger 
        facility charge'' means a [charge or charge] charge 
        imposed under this section.
          (6) Passenger facility revenue.--The term ``passenger 
        facility revenue'' means revenue derived from a 
        passenger facility charge.
  (b) General Authority.--(1) The Secretary of Transportation 
may authorize under this section an eligible agency to impose a 
passenger facility charge of $1, $2, [or $3] $3, $4, or $4.50 
on each paying passenger of an air carrier or foreign air 
carrier boarding an aircraft at an airport the agency controls 
to finance an eligible airport-related project, including 
making payments for debt service on indebtedness incurred to 
carry out the project, to be carried out in connection with the 
airport or any other airport the agency controls.
  (2) A State, political subdivision of a State, or authority 
of a State or political subdivision that is not the eligible 
agency may not regulate or prohibit the imposition or 
collection of a passenger facility charge or the use of the 
passenger facility revenue.
  (3) A passenger facility charge may be imposed on a passenger 
of an air carrier or foreign air carrier originating or 
connecting at the commercial service airport that the agency 
controls.
  [(4) In lieu of authorizing a charge under paragraph (1), the 
Secretary may authorize under this section an eligible agency 
to impose a passenger facility charge of $4.00 or $4.50 on each 
paying passenger of an air carrier or foreign air carrier 
boarding an aircraft at an airport the agency controls to 
finance an eligible airport-related project, including making 
payments for debt service on indebtedness incurred to carry out 
the project, if the Secretary finds--
          [(A) in the case of an airport that has more than .25 
        percent of the total number of annual boardings in the 
        United States, that the project will make a significant 
        contribution to improving air safety and security, 
        increasing competition among air carriers, reducing 
        current or anticipated congestion, or reducing the 
        impact of aviation noise on people living near the 
        airport; and
          [(B) that the project cannot be paid for from funds 
        reasonably expected to be available for the programs 
        referred to in section 48103.]
  (5) Maximum cost for certain low-emission technology 
projects.--The maximum cost that may be financed by imposition 
of a passenger facility charge under this section for a project 
described in subsection (a)(3)(G) with respect to a vehicle or 
ground support equipment may not exceed the incremental amount 
of the project cost that is greater than the cost of acquiring 
a vehicle or equipment that is not low-emission and would be 
used for the same purpose, or the cost of low-emission 
retrofitting, as determined by the Secretary.
  (6) Debt service for certain projects.--In addition to the 
uses [specified in paragraphs (1) and (4)] specified in 
paragraph (1) , the Secretary may authorize a passenger 
facility charge [imposed under paragraph (1) or (4)] imposed 
under paragraph (1) to be used for making payments for debt 
service on indebtedness incurred to carry out at the airport a 
project that is not an eligible airport-related project if the 
Secretary determines that such use is necessary due to the 
financial need of the airport.
  (7) Noise mitigation for certain schools.--
          (A) In general.--In addition to the uses [specified 
        in paragraphs (1), (4), and (6)] specified in 
        paragraphs (1) and (6) , the Secretary may authorize a 
        passenger facility charge [imposed under paragraph (1) 
        or (4)] imposed under paragraph (1) at a large hub 
        airport that is the subject of an amended judgment and 
        final order in condemnation filed on January 7, 1980, 
        by the Superior Court of the State of California for 
        the county of Los Angeles, to be used for a project to 
        carry out noise mitigation for a building, or for the 
        replacement of a relocatable building with a permanent 
        building, in the noise impacted area surrounding the 
        airport at which such building is used primarily for 
        educational purposes, notwithstanding the air easement 
        granted or any terms to the contrary in such judgment 
        and final order, if--
                  (i) the Secretary determines that the 
                building is adversely affected by airport 
                noise;
                  (ii) the building is owned or chartered by 
                the school district that was the plaintiff in 
                case number 986,442 or 986,446, which was 
                resolved by such judgment and final order;
                  (iii) the project is for a school identified 
                in 1 of the settlement agreements effective 
                February 16, 2005, between the airport and each 
                of the school districts;
                  (iv) in the case of a project to replace a 
                relocatable building with a permanent building, 
                the eligible project costs are limited to the 
                actual structural construction costs necessary 
                to mitigate aircraft noise in instructional 
                classrooms to an interior noise level meeting 
                current standards of the Federal Aviation 
                Administration; and
                  (v) the project otherwise meets the 
                requirements of this section for authorization 
                of a passenger facility charge.
          (B) Eligible project costs.--In subparagraph (A)(iv), 
        the term ``eligible project costs'' means the 
        difference between the cost of standard school 
        construction and the cost of construction necessary to 
        mitigate classroom noise to the standards of the 
        Federal Aviation Administration.
  (c) Applications.--(1) An eligible agency must submit to the 
Secretary an application for authority to impose a passenger 
facility charge. The application shall contain information and 
be in the form that the Secretary may require by regulation.
  (2) Before submitting an application, the eligible agency 
must provide reasonable notice to, and an opportunity for 
consultation with, air carriers and foreign air carriers 
operating at the airport. The Secretary shall prescribe 
regulations that define reasonable notice and contain at least 
the following requirements:
          (A) The agency must provide written notice of 
        individual projects being considered for financing by a 
        passenger facility charge and the date and location of 
        a meeting to present the projects to air carriers and 
        foreign air carriers operating at the airport.
          (B) Not later than 30 days after written notice is 
        provided under subparagraph (A) of this paragraph, each 
        air carrier and foreign air carrier operating at the 
        airport must provide to the agency written notice of 
        receipt of the notice. Failure of a carrier to provide 
        the notice may be deemed certification of agreement 
        with the project by the carrier under subparagraph (D) 
        of this paragraph.
          (C) Not later than 45 days after written notice is 
        provided under subparagraph (A) of this paragraph, the 
        agency must conduct a meeting to provide air carriers 
        and foreign air carriers with descriptions of projects 
        and justifications and a detailed financial plan for 
        projects.
          (D) Not later than 30 days after the meeting, each 
        air carrier and foreign air carrier must provide to the 
        agency certification of agreement or disagreement with 
        projects (or total plan for the projects). Failure to 
        provide the certification is deemed certification of 
        agreement with the project by the carrier. A 
        certification of disagreement is void if it does not 
        contain the reasons for the disagreement.
          (E) The agency must include in its application or 
        notice submitted under subparagraph (A) copies of all 
        certifications of agreement or disagreement received 
        under subparagraph (D).
          (F) For the purpose of this section, an eligible 
        agency providing notice and an opportunity for 
        consultation to an air carrier or foreign air carrier 
        is deemed to have satisfied the requirements of this 
        paragraph if the eligible agency limits such notices 
        and consultations to air carriers and foreign air 
        carriers that have a significant business interest at 
        the airport. In the subparagraph, the term 
        ``significant business interest'' means an air carrier 
        or foreign air carrier that had no less than 1.0 
        percent of passenger boardings at the airport in the 
        prior calendar year, had at least 25,000 passenger 
        boardings at the airport in the prior calendar year, or 
        provides scheduled service at the airport.
  (3) Before submitting an application, the eligible agency 
must provide reasonable notice and an opportunity for public 
comment. The Secretary shall prescribe regulations that define 
reasonable notice and provide for at least the following under 
this paragraph:
          (A) A requirement that the eligible agency provide 
        public notice of intent to collect a passenger facility 
        charge so as to inform those interested persons and 
        agencies that may be affected. The public notice may 
        include--
                  (i) publication in local newspapers of 
                general circulation;
                  (ii) publication in other local media; and
                  (iii) posting the notice on the agency's 
                Internet website.
          (B) A requirement for submission of public comments 
        no sooner than 30 days, and no later than 45 days, 
        after the date of the publication of the notice.
          (C) A requirement that the agency include in its 
        application or notice submitted under subparagraph (A) 
        copies of all comments received under subparagraph (B).
  (4) After receiving an application, the Secretary may provide 
notice and an opportunity to air carriers, foreign air 
carriers, and other interested persons to comment on the 
application. The Secretary shall make a final decision on the 
application not later than 120 days after receiving it.
  (d) Limitations on Approving Applications.--The Secretary may 
approve an application that an eligible agency has submitted 
under subsection (c) of this section to finance a specific 
project only if the Secretary finds, based on the application, 
that--
          (1) the amount and duration of the proposed passenger 
        facility charge will result in revenue (including 
        interest and other returns on the revenue) that is not 
        more than the amount necessary to finance the specific 
        project;
          (2) each project is an eligible airport-related 
        project that will--
                  (A) preserve or enhance capacity, safety, or 
                security of the national air transportation 
                system;
                  (B) reduce noise resulting from an airport 
                that is part of the system; or
                  (C) provide an opportunity for enhanced 
                competition between or among air carriers and 
                foreign air carriers;
          (3) the application includes adequate justification 
        for each of the specific projects; and
          (4) in the case of an application to impose a charge 
        of more than $3.00 for an eligible surface 
        transportation or terminal project, the agency has made 
        adequate provision for financing the airside needs of 
        the airport, including runways, taxiways, aprons, and 
        aircraft gates.
  (e) Limitations on Imposing Charges.--(1) An eligible agency 
may impose a passenger facility charge only--
          (A) if the Secretary approves an application that the 
        agency has submitted under subsection (c) of this 
        section; and
          (B) subject to terms the Secretary may prescribe to 
        carry out the objectives of this section.
  (2) A passenger facility charge may not be collected from a 
passenger--
          (A) for more than 2 boardings on a one-way trip or a 
        trip in each direction of a round trip;
          (B) for the boarding to an eligible place under 
        subchapter II of chapter 417 of this title for which 
        essential air service compensation is paid under 
        subchapter II;
          (C) enplaning at an airport if the passenger did not 
        pay for the air transportation which resulted in such 
        enplanement, including any case in which the passenger 
        obtained the ticket for the air transportation with a 
        frequent flier award coupon without monetary payment;
          (D) on flights, including flight segments, between 2 
        or more points in Hawaii;
          (E) in Alaska aboard an aircraft having a seating 
        capacity of less than 60 passengers; and
          (F) enplaning at an airport if the passenger did not 
        pay for the air transportation which resulted in such 
        enplanement due to charter arrangements and payment by 
        the Department of Defense.
  (f) Limitations on Contracts, Leases, and Use Agreements.--
(1) A contract between an air carrier or foreign air carrier 
and an eligible agency made at any time may not impair the 
authority of the agency to impose a passenger facility charge 
or to use the passenger facility revenue as provided in this 
section.
  (2) A project financed with a passenger facility charge may 
not be subject to an exclusive long-term lease or use agreement 
of an air carrier or foreign air carrier, as defined by 
regulations of the Secretary.
  (3) A lease or use agreement of an air carrier or foreign air 
carrier related to a project whose construction or expansion 
was financed with a passenger facility charge may not restrict 
the eligible agency from financing, developing, or assigning 
new capacity at the airport with passenger facility revenue.
  (g) Treatment of Revenue.--(1) Passenger facility revenue is 
not airport revenue for purposes of establishing a price under 
a contract between an eligible agency and an air carrier or 
foreign air carrier.
  (2) An eligible agency may not include in its price base the 
part of the capital costs of a project paid for by using 
passenger facility revenue to establish a price under a 
contract between the agency and an air carrier or foreign air 
carrier.
  (3) For a project for terminal development, gates and related 
areas, or a facility occupied or used by at least one air 
carrier or foreign air carrier on an exclusive or preferential 
basis, a price payable by an air carrier or foreign air carrier 
using the facilities must at least equal the price paid by an 
air carrier or foreign air carrier using a similar facility at 
the airport that was not financed with passenger facility 
revenue.
  (4) Passenger facility revenues that are held by an air 
carrier or an agent of the carrier after collection of a 
passenger facility charge constitute a trust fund that is held 
by the air carrier or agent for the beneficial interest of the 
eligible agency imposing the charge. Such carrier or agent 
holds neither legal nor equitable interest in the passenger 
facility revenues except for any handling fee or retention of 
interest collected on unremitted proceeds as may be allowed by 
the Secretary.
  (h) Compliance.--(1) As necessary to ensure compliance with 
this section, the Secretary shall prescribe regulations 
requiring recordkeeping and auditing of accounts maintained by 
an air carrier or foreign air carrier and its agent collecting 
a passenger facility charge and by the eligible agency imposing 
the charge.
  (2) The Secretary periodically shall audit and review the use 
by an eligible agency of passenger facility revenue. After 
review and a public hearing, the Secretary may end any part of 
the authority of the agency to impose a passenger facility 
charge to the extent the Secretary decides that the revenue is 
not being used as provided in this section.
  (3) The Secretary may set off amounts necessary to ensure 
compliance with this section against amounts otherwise payable 
to an eligible agency under subchapter I of chapter 471 of this 
title if the Secretary decides a passenger facility charge is 
excessive or that passenger facility revenue is not being used 
as provided in this section.
  (i) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations--
          (1) may prescribe the time and form by which a 
        passenger facility charge takes effect;
          (2) shall--
                  (A) require an air carrier or foreign air 
                carrier and its agent to collect a passenger 
                facility charge that an eligible agency imposes 
                under this section;
                  (B) establish procedures for handling and 
                remitting money collected;
                  (C) ensure that the money, less a uniform 
                amount the Secretary determines reflects the 
                average necessary and reasonable expenses (net 
                of interest accruing to the carrier and agent 
                after collection and before remittance) 
                incurred in collecting and handling the charge, 
                is paid promptly to the eligible agency for 
                which they are collected; and
                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air transportation; and
          (3) may permit an eligible agency to request that 
        collection of a passenger facility charge be waived 
        for--
                  (A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carriers in the 
                class constitutes not more than one percent of 
                the total number of passengers enplaned 
                annually at the airport at which the charge is 
                imposed; or
                  (B) passengers enplaned on a flight to an 
                airport--
                          (i) that has fewer than 2,500 
                        passenger boardings each year and 
                        receives scheduled passenger service; 
                        or
                          (ii) in a community which has a 
                        population of less than 10,000 and is 
                        not connected by a land highway or 
                        vehicular way to the land-connected 
                        National Highway System within a State.
  (j) Limitation on Certain Actions.--A State, political 
subdivision of a State, or authority of a State or political 
subdivision that is not the eligible agency may not tax, 
regulate, or prohibit or otherwise attempt to control in any 
manner, the imposition or collection of a passenger facility 
charge or the use of the revenue from the passenger facility 
charge.
  (k) Competition Plans.--
          (1) In general.--Beginning in fiscal year 2001, no 
        eligible agency may impose a passenger facility charge 
        under this section with respect to a covered airport 
        (as such term is defined in section 47106(f)) unless 
        the agency has submitted to the Secretary a written 
        competition plan in accordance with such section. This 
        subsection does not apply to passenger facility charges 
        in effect before the date of the enactment of this 
        subsection.
          (2) Secretary shall ensure implementation and 
        compliance.--The Secretary shall review any plan 
        submitted under paragraph (1) to ensure that it meets 
        the requirements of this section, and shall review its 
        implementation from time-to-time to ensure that each 
        covered airport successfully implements its plan.
  (l) Pilot Program for Passenger Facility Charge 
Authorizations [at Nonhub Airports].--
          (1) In general.--The Secretary shall establish a 
        pilot program to test alternative procedures for 
        authorizing eligible agencies for [nonhub] airports to 
        impose passenger facility charges. An eligible agency 
        may impose in accordance with the provisions of this 
        subsection a passenger facility charge under this 
        section. For purposes of the pilot program, the 
        procedures in this subsection shall apply instead of 
        the procedures otherwise provided in this section.
          (2) Notice and opportunity for consultation.--The 
        eligible agency must provide reasonable notice and an 
        opportunity for consultation to air carriers and 
        foreign air carriers in accordance with subsection 
        (c)(2) and must provide reasonable notice and 
        opportunity for public comment in accordance with 
        subsection (c)(3).
          (3) Notice of intention.--The eligible agency must 
        submit to the Secretary a notice of intention to impose 
        a passenger facility charge under this subsection. The 
        notice shall include--
                  (A) information that the Secretary may 
                require by regulation on each project for which 
                authority to impose a passenger facility charge 
                is sought;
                  (B) the amount of revenue from passenger 
                facility charges that is proposed to be 
                collected for each project; and
                  (C) the level of the passenger facility 
                charge that is proposed.
          (4) Acknowledgement of receipt and indication of 
        objection.--The Secretary shall acknowledge receipt of 
        the notice and indicate any objection to the imposition 
        of a passenger facility charge under this subsection 
        for any project identified in the notice within 30 days 
        after receipt of the eligible agency's notice.
          (5) Authority to impose charge.--Unless the Secretary 
        objects within 30 days after receipt of the eligible 
        agency's notice, the eligible agency is authorized to 
        impose a passenger facility charge in accordance with 
        the terms of its notice under this subsection.
          (6) Regulations.--Not later than 180 days after the 
        date of enactment of this subsection, the Secretary 
        shall propose such regulations as may be necessary to 
        carry out this subsection.
          (7) Acknowledgement not an order.--An acknowledgement 
        issued under paragraph (4) shall not be considered an 
        order issued by the Secretary for purposes of section 
        46110.
  (m) Financial Management of Charges.--
          (1) Handling of charges.--A covered air carrier shall 
        segregate in a separate account passenger facility 
        revenue equal to the average monthly liability for 
        charges collected under this section by such carrier or 
        any of its agents for the benefit of the eligible 
        agencies entitled to such revenue.
          (2) Trust fund status.--If a covered air carrier or 
        its agent fails to segregate passenger facility revenue 
        in violation of the subsection, the trust fund status 
        of such revenue shall not be defeated by an inability 
        of any party to identify and trace the precise funds in 
        the accounts of the air carrier.
          (3) Prohibition.--A covered air carrier and its 
        agents may not grant to any third party any security or 
        other interest in passenger facility revenue.
          (4) Compensation to eligible entities.--A covered air 
        carrier that fails to comply with any requirement of 
        this subsection, or otherwise unnecessarily causes an 
        eligible entity to expend funds, through litigation or 
        otherwise, to recover or retain payment of passenger 
        facility revenue to which the eligible entity is 
        otherwise entitled shall be required to compensate the 
        eligible agency for the costs so incurred.
          (5) Interest on amounts.--A covered air carrier that 
        collects passenger facility charges is entitled to 
        receive the interest on passenger facility charge 
        accounts if the accounts are established and maintained 
        in compliance with this subsection.
          (6) Existing regulations.--The provisions of section 
        158.49 of title 14, Code of Federal Regulations, that 
        permit the commingling of passenger facility charges 
        with other air carrier revenue shall not apply to a 
        covered air carrier.
          (7) Covered air carrier defined.--In this section, 
        the term ``covered air carrier'' means an air carrier 
        that files for chapter 7 or chapter 11 of title 11 
        bankruptcy protection, or has an involuntary chapter 7 
        of title 11 bankruptcy proceeding commenced against it, 
        after the date of enactment of this subsection.
  (n) Use of Revenues at Previously Associated Airport.--
Notwithstanding the requirements relating to airport control 
under subsection (b)(1), the Secretary may authorize use of a 
passenger facility charge under subsection (b) to finance an 
eligible airport-related project if--
          (1) the eligible agency seeking to impose the new 
        charge controls an airport where a $2.00 passenger 
        facility charge became effective on January 1, 2013; 
        and
          (2) the location of the project to be financed by the 
        new charge is at an airport that was under the control 
        of the same eligible agency that had controlled the 
        airport described in paragraph (1).

           *       *       *       *       *       *       *

Sec. 40122. Federal Aviation Administration personnel management system

  (a) In General.--
          (1) Consultation and negotiation.--In developing and 
        making changes to the personnel management system 
        initially implemented by the Administrator of the 
        Federal Aviation Administration on April 1, 1996, the 
        Administrator shall negotiate with the exclusive 
        bargaining representatives of employees of the 
        Administration certified under section 7111 of title 5 
        and consult with other employees of the Administration.
          (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).
          (4) Cost savings and productivity goals.--The 
        Administration and the exclusive bargaining 
        representatives of the employees shall use every 
        reasonable effort to find cost savings and to increase 
        productivity within each of the affected bargaining 
        units.
          (5) Annual budget discussions.--The Administration 
        and the exclusive bargaining representatives of the 
        employees shall meet annually for the purpose of 
        finding additional cost savings within the 
        Administration's annual budget as it applies to each of 
        the affected bargaining units and throughout the 
        agency.
  (b) Expert Evaluation.--On the date that is 3 years after the 
personnel management system is implemented, the Administration 
shall employ outside experts to provide an independent 
evaluation of the effectiveness of the system within 3 months 
after such date. For this purpose, the Administrator may 
utilize the services of experts and consultants under section 
3109 of title 5 without regard to the limitation imposed by the 
last sentence of section 3109(b) of such title, and may 
contract on a sole source basis, notwithstanding any other 
provision of law to the contrary.
  (c) Pay Restriction.--No officer or employee of the 
Administration may receive an annual rate of basic pay in 
excess of the annual rate of basic pay payable to the 
Administrator.
  (d) Ethics.--The Administration shall be subject to Executive 
Order No. 12674 and regulations and opinions promulgated by the 
Office of Government Ethics, including those set forth in 
section 2635 of title 5 of the Code of Federal Regulations.
  (e) Employee Protections.--Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay 
provided employees of the Administration shall not be 
involuntarily adversely affected by reason of the enactment of 
this section, except for unacceptable performance or by reason 
of a reduction in force or reorganization or by agreement 
between the Administration and the affected employees' 
exclusive bargaining representative.
  (f) Labor-Management Agreements.--Except as otherwise 
provided by this title, all labor-management agreements 
covering employees of the Administration that are in effect on 
the effective date of the Air Traffic Management System 
Performance Improvement Act of 1996 shall remain in effect 
until their normal expiration date, unless the Administrator 
and the exclusive bargaining representative agree to the 
contrary.
  (g) Personnel Management System.--
          (1) In general.--In consultation with the employees 
        of the Administration and such non-governmental experts 
        in personnel management systems as he may employ, and 
        notwithstanding the provisions of title 5 and other 
        Federal personnel laws, the Administrator shall develop 
        and implement, not later than January 1, 1996, a 
        personnel management system for the Administration that 
        addresses the unique demands on the agency's workforce. 
        Such a new system shall, at a minimum, provide for 
        greater flexibility in the hiring, training, 
        compensation, and location of personnel.
          (2) Applicability of title 5.--The provisions of 
        title 5 shall not apply to the new personnel management 
        system developed and implemented pursuant to paragraph 
        (1), with the exception of--
                  (A) section 2302(b), relating to 
                whistleblower protection, including the 
                provisions for investigation and enforcement as 
                provided in chapter 12 of title 5;
                  (B) sections 3304(f), 3308-3320, 3330a, 
                3330b, 3330c, and 3330d, relating to veterans' 
                preference;
                  (C) chapter 71, relating to labor-management 
                relations;
                  (D) section 7204, relating to 
                antidiscrimination;
                  (E) chapter 73, relating to suitability, 
                security, and conduct;
                  (F) chapter 81, relating to compensation for 
                work injury;
                  (G) chapters 83-85, 87, and 89, relating to 
                retirement, unemployment compensation, and 
                insurance coverage;
                  (H) sections 1204, 1211-1218, 1221, and 7701-
                7703, relating to the Merit Systems Protection 
                Board;
                  (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; and
                  (J) subject to paragraph (4) of this 
                subsection, section 6329, relating to disabled 
                veteran leave.
          (3) Appeals to Merit Systems Protection Board.--Under 
        the new personnel management system developed and 
        implemented under paragraph (1), an employee of the 
        Administration may submit an appeal to the Merit 
        Systems Protection Board and may seek judicial review 
        of any resulting final orders or decisions of the Board 
        from any action that was appealable to the Board under 
        any law, rule, or regulation as of March 31, 1996. 
        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.
          (4) Certification of disabled veteran leave.--In 
        order to verify that leave credited to an employee 
        pursuant to paragraph (2)(J) is used for treating a 
        service-connected disability, that employee shall, 
        notwithstanding section 6329(c) of title 5, submit to 
        the Assistant Administrator for Human Resource 
        Management of the Federal Aviation Administration 
        certification, in such form and manner as the 
        Administrator of the Federal Aviation Administration 
        may prescribe, that the employee used that leave for 
        purposes of being furnished treatment for that 
        disability by a health care provider.
          (5) Effective date.--This subsection shall take 
        effect on April 1, 1996.
  (h) Right To Contest Adverse Personnel Actions.--An employee 
of the Federal Aviation Administration who is the subject of a 
major adverse personnel action may contest the action either 
through any contractual grievance procedure that is applicable 
to the employee as a member of the collective bargaining unit 
or through the Administration's internal process relating to 
review of major adverse personnel actions of the 
Administration, known as Guaranteed Fair Treatment, or under 
section 40122(g)(3).
  (i) Election of Forum.--Where a major adverse personnel 
action may be contested through more than one of the indicated 
forums (such as the contractual grievance procedure, the 
Federal Aviation Administration's internal process, or that of 
the Merit Systems Protection Board), an employee must elect the 
forum through which the matter will be contested. Nothing in 
this section is intended to allow an employee to contest an 
action through more than one forum unless otherwise allowed by 
law.
  (j) Definition.--In this section, the term ``major adverse 
personnel action'' means a suspension of more than 14 days, a 
reduction in pay or grade, a removal for conduct or 
performance, a nondisciplinary removal, a furlough of 30 days 
or less (but not including placement in a nonpay status as the 
result of a lapse of appropriations or an enactment by 
Congress), or a reduction in force action.

           *       *       *       *       *       *       *

Sec. 40125. Qualifications for public aircraft status

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Commercial purposes.--The term ``commercial 
        purposes'' means the transportation of persons or 
        property for compensation or hire, but does not include 
        the operation of an aircraft by the armed forces for 
        reimbursement when that reimbursement is required by 
        any Federal statute, regulation, or directive, in 
        effect on November 1, 1999, or by one government on 
        behalf of another government under a cost reimbursement 
        agreement if the government on whose behalf the 
        operation is conducted certifies to the Administrator 
        of the Federal Aviation Administration that the 
        operation is necessary to respond to a significant and 
        imminent threat to life or property (including natural 
        resources) and that no service by a private operator is 
        reasonably available to meet the threat.
          (2) Governmental function.--The term ``governmental 
        function'' means an activity undertaken by a 
        government, such as national defense, intelligence 
        missions, firefighting, search and rescue, law 
        enforcement (including transport of prisoners, 
        detainees, and illegal aliens), aeronautical research, 
        or biological or geological resource management.
          (3) Qualified non-crewmember.--The term ``qualified 
        non-crewmember'' means an individual, other than a 
        member of the crew, aboard an aircraft--
                  (A) operated by the armed forces or an 
                intelligence agency of the United States 
                Government; or
                  (B) whose presence is required to perform, or 
                is associated with the performance of, a 
                governmental function.
          (4) Armed forces.--The term ``armed forces'' has the 
        meaning given such term by section 101 of title 10.
  (b) Aircraft Owned by Governments.--An aircraft described in 
subparagraph (A), (B), (C), [or (D)] (D), or (F) of section 
40102(a)(41) does not qualify as a public aircraft under such 
section when the aircraft is used for commercial purposes or to 
carry an individual other than a crewmember or a qualified non-
crewmember.
  (c) Aircraft Owned or Operated by the Armed Forces.--
          (1) In general.--Subject to paragraph (2), an 
        aircraft described in section 40102(a)(41)(E) qualifies 
        as a public aircraft if--
                  (A) the aircraft is operated in accordance 
                with title 10;
                  (B) the aircraft is operated in the 
                performance of a governmental function under 
                title 14, 31, 32, or 50 and the aircraft is not 
                used for commercial purposes; or
                  (C) the aircraft is chartered to provide 
                transportation or other commercial air service 
                to the armed forces and the Secretary of 
                Defense (or the Secretary of the department in 
                which the Coast Guard is operating) designates 
                the operation of the aircraft as being required 
                in the national interest.
          (2) Limitation.--An aircraft that meets the criteria 
        set forth in paragraph (1) and that is owned or 
        operated by the National Guard of a State, the District 
        of Columbia, or any territory or possession of the 
        United States, qualifies as a public aircraft only to 
        the extent that it is operated under the direct control 
        of the Department of Defense.
  (d) Search and Rescue Purposes.--An aircraft described in 
section 40102(a)(41)(D) that is not exclusively leased for at 
least 90 continuous days by the government of a State, the 
District of Columbia, or a territory or possession of the 
United States or a political subdivision of 1 of those 
governments, qualifies as a public aircraft if the 
Administrator determines that--
          (1) there are extraordinary circumstances;
          (2) the aircraft will be used for the performance of 
        search and rescue missions;
          (3) a community would not otherwise have access to 
        search and rescue services; and
          (4) a government entity demonstrates that granting 
        the waiver is necessary to prevent an undue economic 
        burden on that government.

           *       *       *       *       *       *       *

Sec. 40128. Overflights of national parks

  (a) In General.--
          (1) General requirements.--A commercial air tour 
        operator may not conduct commercial air tour operations 
        over a national park or tribal lands, as defined by 
        this section, except--
                  (A) in accordance with this section;
                  (B) in accordance with conditions and 
                limitations prescribed for that operator by the 
                Administrator; and
                  (C) in accordance with any applicable air 
                tour management plan or voluntary agreement 
                under subsection (b)(7) for the park or tribal 
                lands.
          (2) Application for operating authority.--
                  (A) Application required.--Before commencing 
                commercial air tour operations over a national 
                park or tribal lands, a commercial air tour 
                operator shall apply to the Administrator for 
                authority to conduct the operations over the 
                park or tribal lands.
                  (B) Competitive bidding for limited capacity 
                parks.--Whenever an air tour management plan 
                limits the number of commercial air tour 
                operations over a national park during a 
                specified time frame, the Administrator, in 
                cooperation with the Director, shall issue 
                operation specifications to commercial air tour 
                operators that conduct such operations. The 
                operation specifications shall include such 
                terms and conditions as the Administrator and 
                the Director find necessary for management of 
                commercial air tour operations over the park. 
                The Administrator, in cooperation with the 
                Director, shall develop an open competitive 
                process for evaluating proposals from persons 
                interested in providing commercial air tour 
                operations over the park. In making a selection 
                from among various proposals submitted, the 
                Administrator, in cooperation with the 
                Director, shall consider relevant factors, 
                including--
                          (i) the safety record of the person 
                        submitting the proposal or pilots 
                        employed by the person;
                          (ii) any quiet aircraft technology 
                        proposed to be used by the person 
                        submitting the proposal;
                          (iii) the experience of the person 
                        submitting the proposal with commercial 
                        air tour operations over other national 
                        parks or scenic areas;
                          (iv) the financial capability of the 
                        person submitting the proposal;
                          (v) any training programs for pilots 
                        provided by the person submitting the 
                        proposal; and
                          (vi) responsiveness of the person 
                        submitting the proposal to any relevant 
                        criteria developed by the National Park 
                        Service for the affected park.
                  (C) Number of operations authorized.--In 
                determining the number of authorizations to 
                issue to provide commercial air tour operations 
                over a national park, the Administrator, in 
                cooperation with the Director, shall take into 
                consideration the provisions of the air tour 
                management plan, the number of existing 
                commercial air tour operators and current level 
                of service and equipment provided by any such 
                operators, and the financial viability of each 
                commercial air tour operation.
                  (D) Cooperation with NPS.--Before granting an 
                application under this paragraph, the 
                Administrator, in cooperation with the 
                Director, shall develop an air tour management 
                plan in accordance with subsection (b) and 
                implement such plan.
                  (E) Time limit on response to ATMP 
                applications.--The Administrator shall make 
                every effort to act on any application under 
                this paragraph and issue a decision on the 
                application not later than 24 months after it 
                is received or amended.
                  (F) Priority.--In acting on applications 
                under this paragraph to provide commercial air 
                tour operations over a national park, the 
                Administrator shall give priority to an 
                application under this paragraph in any case in 
                which a new entrant commercial air tour 
                operator is seeking operating authority with 
                respect to that national park.
          (3) Exception.--Notwithstanding paragraph (1), 
        commercial air tour operators may conduct commercial 
        air tour operations over a national park [under part 91 
        of the title 14,] under part 91 of title 14, Code of 
        Federal Regulations if--
                  (A) such activity is permitted under part 119 
                of such title;
                  (B) the operator secures a letter of 
                agreement from the Administrator and the 
                national park superintendent for that national 
                park describing the conditions under which the 
                operations will be conducted; and
                  (C) the total number of operations under this 
                exception is limited to not more than five 
                flights in any 30-day period over a particular 
                park.
          (4) Special rule for safety requirements.--
        Notwithstanding subsection (c), an existing commercial 
        air tour operator shall apply, not later than 90 days 
        after the date of the enactment of this section, for 
        operating authority under part 119, 121, or 135 of 
        title 14, Code of Federal Regulations. A new entrant 
        commercial air tour operator shall apply for such 
        authority before conducting commercial air tour 
        operations over a national park or tribal lands. The 
        Administrator shall make every effort to act on any 
        such application for a new entrant and issue a decision 
        on the application not later than 24 months after it is 
        received or amended.
          (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.
  (b) Air Tour Management Plans.--
          (1) Establishment.--
                  (A) In general.--The Administrator, in 
                cooperation with the Director, shall establish 
                an air tour management plan for any national 
                park or tribal land for which such a plan is 
                not in effect whenever a person applies for 
                authority to conduct a commercial air tour 
                operation over the park. The air tour 
                management plan shall be developed by means of 
                a public process in accordance with paragraph 
                (4).
                  (B) Objective.--The objective of any air tour 
                management plan shall be to develop acceptable 
                and effective measures to mitigate or prevent 
                the significant adverse impacts, if any, of 
                commercial air tour operations upon the natural 
                and cultural resources, visitor experiences, 
                and tribal lands.
                  (C) Exception.--An application to begin or 
                expand commercial air tour operations at Crater 
                Lake National Park or Great Smoky Mountains 
                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.
          (2) Environmental determination.--In establishing an 
        air tour management plan under this subsection, the 
        Administrator and the Director shall each sign the 
        environmental decision document required by section 102 
        of the National Environmental Policy Act of 1969 (42 
        U.S.C. 4332) which may include a finding of no 
        significant impact, an environmental assessment, or an 
        environmental impact statement and the record of 
        decision for the air tour management plan.
          (3) Contents.--An air tour management plan for a 
        national park--
                  (A) may prohibit commercial air tour 
                operations over a national park in whole or in 
                part;
                  (B) may establish conditions for the conduct 
                of commercial air tour operations over a 
                national park, including commercial air tour 
                routes, maximum or minimum altitudes, time-of-
                day restrictions, restrictions for particular 
                events, maximum number of flights per unit of 
                time, intrusions on privacy on tribal lands, 
                and mitigation of noise, visual, or other 
                impacts;
                  (C) shall apply to all commercial air tour 
                operations over a national park that are also 
                within 1/2 mile outside the boundary of a 
                national park;
                  (D) shall include incentives (such as 
                preferred commercial air tour routes and 
                altitudes, relief from caps and curfews) for 
                the adoption of quiet aircraft technology by 
                commercial air tour operators conducting 
                commercial air tour operations over a national 
                park;
                  (E) shall provide for the initial allocation 
                of opportunities to conduct commercial air tour 
                operations over a national park if the plan 
                includes a limitation on the number of 
                commercial air tour operations for any time 
                period; and
                  (F) shall justify and document the need for 
                measures taken pursuant to subparagraphs (A) 
                through (E) and include such justifications in 
                the record of decision.
          (4) Procedure.--In establishing an air tour 
        management plan for a national park or tribal lands, 
        the Administrator and the Director shall--
                  (A) hold at least one public meeting with 
                interested parties to develop the air tour 
                management plan;
                  (B) publish the proposed plan in the Federal 
                Register for notice and comment and make copies 
                of the proposed plan available to the public;
                  (C) comply with the regulations set forth in 
                sections 1501.3 and 1501.5 through 1501.8 of 
                title 40, Code of Federal Regulations (for 
                purposes of complying with the regulations, the 
                Federal Aviation Administration shall be the 
                lead agency and the National Park Service is a 
                cooperating agency); and
                  (D) solicit the participation of any Indian 
                tribe whose tribal lands are, or may be, 
                overflown by aircraft involved in a commercial 
                air tour operation over the park or tribal 
                lands to which the plan applies, as a 
                cooperating agency under the regulations 
                referred to in subparagraph (C).
          (5) Judicial review.--An air tour management plan 
        developed under this subsection shall be subject to 
        judicial review.
          (6) Amendments.--The Administrator, in cooperation 
        with the Director, may make amendments to an air tour 
        management plan. Any such amendments shall be published 
        in the Federal Register for notice and comment. A 
        request for amendment of an air tour management plan 
        shall be made in such form and manner as the 
        Administrator may prescribe.
          (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.
  (c) Interim Operating Authority.--
          (1) In general.--Upon application for operating 
        authority, the Administrator shall grant interim 
        operating authority under this subsection to a 
        commercial air tour operator for commercial air tour 
        operations over a national park or tribal lands for 
        which the operator is an existing commercial air tour 
        operator.
          (2) Requirements and limitations.--Interim operating 
        authority granted under this subsection--
                  (A) shall provide annual authorization only 
                for the greater of--
                          (i) the number of flights used by the 
                        operator to provide the commercial air 
                        tour operations over a national park 
                        within the 12-month period prior to the 
                        date of the enactment of this section; 
                        or
                          (ii) the average number of flights 
                        per 12-month period used by the 
                        operator to provide such operations 
                        within the 36-month period prior to 
                        such date of enactment, and, for 
                        seasonal operations, the number of 
                        flights so used during the season or 
                        seasons covered by that 12-month 
                        period;
                  (B) may not provide for an increase in the 
                number of commercial air tour operations over a 
                national park conducted during any time period 
                by the commercial air tour operator above the 
                number that the air tour operator was 
                originally granted unless such an increase is 
                agreed to by the Administrator and the 
                Director;
                  (C) shall be published in the Federal 
                Register to provide notice and opportunity for 
                comment;
                  (D) may be revoked by the Administrator for 
                cause;
                  (E) shall terminate 180 days after the date 
                on which an air tour management plan is 
                established for the park or tribal lands;
                  (F) shall promote protection of national park 
                resources, visitor experiences, and tribal 
                lands;
                  (G) shall promote safe commercial air tour 
                operations;
                  (H) shall promote the adoption of quiet 
                technology, as appropriate; and
                  (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.
          (3) New entrant air tour operators.--
                  (A) In general.--The Administrator, in 
                cooperation with the Director, may grant 
                interim operating authority under this 
                paragraph to an air tour operator for a 
                national park or tribal lands for which that 
                operator is a new entrant air tour operator 
                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.
                  (B) Safety limitation.--The Administrator may 
                not grant interim operating authority under 
                subparagraph (A) if the Administrator 
                determines that it would create a safety 
                problem at the park or on the tribal lands, or 
                the Director determines that it would create a 
                noise problem at the park or on the tribal 
                lands.
                  (C) ATMP limitation.--The Administrator may 
                grant interim operating authority under 
                subparagraph (A) of this paragraph only if the 
                air tour management plan for the park or tribal 
                lands to which the application relates has not 
                been developed within 24 months after the date 
                of the enactment of this section.
  (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.
  (e) Exemptions.--This section shall not apply to--
          (1) the Grand Canyon National Park; or
          (2) tribal lands within or abutting the Grand Canyon 
        National Park.
  (f) Lake Mead.--This section shall not apply to any air tour 
operator while flying over or near the Lake Mead National 
Recreation Area, solely as a transportation route, to conduct 
an air tour over the Grand Canyon National Park. For purposes 
of this subsection, an air tour operator flying over the Hoover 
Dam in the Lake Mead National Recreation Area en route to the 
Grand Canyon National Park shall be deemed to be flying solely 
as a transportation route.
  (g) Definitions.--In this section, the following definitions 
apply:
          (1) Commercial air tour operator.--The term 
        ``commercial air tour operator'' means any person who 
        conducts a commercial air tour operation over a 
        national park.
          (2) Existing commercial air tour operator.--The term 
        ``existing commercial air tour operator'' means a 
        commercial air tour operator that was actively engaged 
        in the business of providing commercial air tour 
        operations over a national park at any time during the 
        12-month period ending on the date of the enactment of 
        this section.
          (3) New entrant commercial air tour operator.--The 
        term ``new entrant commercial air tour operator'' means 
        a commercial air tour operator that--
                  (A) applies for operating authority as a 
                commercial air tour operator for a national 
                park or tribal lands; and
                  (B) has not engaged in the business of 
                providing commercial air tour operations over 
                the national park or tribal lands in the 12-
                month period preceding the application.
          (4) Commercial air tour operation over a national 
        park.--
                  (A) In general.--The term ``commercial air 
                tour operation over a national park'' means any 
                flight, conducted for compensation or hire in a 
                powered aircraft where a purpose of the flight 
                is sightseeing over a national park, within 1/2 
                mile outside the boundary of any national park 
                (except the Grand Canyon National Park), or 
                over tribal lands (except those within or 
                abutting the Grand Canyon National Park), 
                during which the aircraft flies--
                          (i) below a minimum altitude, 
                        determined by the Administrator in 
                        cooperation with the Director, above 
                        ground level (except solely for 
                        purposes of takeoff or landing, or 
                        necessary for safe operation of an 
                        aircraft as determined under the rules 
                        and regulations of the Federal Aviation 
                        Administration requiring the pilot-in-
                        command to take action to ensure the 
                        safe operation of the aircraft); or
                          (ii) less than 1 mile laterally from 
                        any geographic feature within the park 
                        (unless more than 1/2 mile outside the 
                        boundary).
                  (B) Factors to consider.--In making a 
                determination of whether a flight is a 
                commercial air tour operation over a national 
                park for purposes of this section, the 
                Administrator may consider--
                          (i) whether there was a holding out 
                        to the public of willingness to conduct 
                        a sightseeing flight for compensation 
                        or hire;
                          (ii) whether a narrative that 
                        referred to areas or points of interest 
                        on the surface below the route of the 
                        flight was provided by the person 
                        offering the flight;
                          (iii) the area of operation;
                          (iv) the frequency of flights 
                        conducted by the person offering the 
                        flight;
                          (v) the route of flight;
                          (vi) the inclusion of sightseeing 
                        flights as part of any travel 
                        arrangement package offered by the 
                        person offering the flight;
                          (vii) whether the flight would have 
                        been canceled based on poor visibility 
                        of the surface below the route of the 
                        flight; and
                          (viii) any other factors that the 
                        Administrator and the Director consider 
                        appropriate.
          (5) National park.--The term ``national park'' means 
        any unit of the National Park System.
          (6) Tribal lands.--The term ``tribal lands'' means 
        Indian country (as that term is defined in section 1151 
        of title 18) that is within or abutting a national 
        park.
          (7) Administrator.--The term ``Administrator'' means 
        the Administrator of the Federal Aviation 
        Administration.
          (8) Director.--The term ``Director'' means the 
        Director of the National Park Service.

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SUBPART II--ECONOMIC REGULATION

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CHAPTER 413--FOREIGN AIR TRANSPORTATION

           *       *       *       *       *       *       *

Sec. 41302. Permits of foreign air carriers

   The Secretary of Transportation may issue a permit to a 
person (except a citizen of the United States) authorizing the 
person to provide foreign air transportation as a foreign air 
carrier if the Secretary finds that--
          (1) the person is fit, willing, and able to provide 
        the foreign air transportation to be authorized by the 
        permit and to comply with this part and regulations of 
        the Secretary; and
          (2)(A) the person is qualified, and has been 
        designated by the government of its country, to provide 
        the foreign air transportation [under an agreement with 
        the United States Government; or]; and
          (B) [the foreign air transportation] after 
        considering the totality of the circumstances, 
        including the factors set forth in section 40101(a), 
        the foreign air transportation to be provided under the 
        permit will be in the public interest.

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Sec. 41313. Plans to address needs of families of passengers involved 
                    in foreign air carrier accidents

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Aircraft accident.--The term ``aircraft 
        accident'' means any aviation disaster, regardless of 
        its cause or suspected cause, that occurs within the 
        United States; and
          (2) Passenger.--The term ``passenger'' has the 
        meaning given such term by section 1136.
  (b) Submission of Plans.--A foreign air carrier providing 
foreign air transportation under this chapter shall transmit to 
the Secretary of Transportation and the Chairman of the 
National Transportation Safety Board a plan for addressing the 
needs of the families of passengers involved in an aircraft 
accident that involves an aircraft under the control of the 
foreign air carrier and results in a major loss of life.
  (c) Contents of Plans.--To the extent permitted by foreign 
law which was in effect on the date of the enactment of this 
section, a plan submitted by a foreign air carrier under 
subsection (b) shall include the following:
          (1) Telephone number.--A plan for publicizing a 
        reliable, toll-free telephone number and staff to take 
        calls to such number from families of passengers 
        involved in an aircraft accident that involves an 
        aircraft under the control of the foreign air carrier 
        and results in a significant loss of life.
          (2) Notification of families.--A process for 
        notifying, in person to the extent practicable, the 
        families of passengers involved in an aircraft accident 
        that involves an aircraft under the control of the 
        foreign air carrier and results in a significant loss 
        of life before providing any public notice of the names 
        of such passengers. Such notice shall be provided by 
        using the services of--
                  (A) the organization designated for the 
                accident under section 1136(a)(2); or
                  (B) other suitably trained individuals.
          (3) Notice provided as soon as possible.--An 
        assurance that the notice required by paragraph (2) 
        shall be provided as soon as practicable after the 
        foreign air carrier has verified the identity of a 
        passenger on the foreign aircraft, whether or not the 
        names of all of the passengers have been verified.
          (4) List of passengers.--An assurance that the 
        foreign air carrier shall provide, immediately upon 
        request, and update a list (based on the best available 
        information at the time of the request) of the names of 
        the passengers aboard the aircraft (whether or not such 
        names have been verified), to--
                  (A) the director of family support services 
                designated for the accident under section 
                1136(a)(1); and
                  (B) the organization designated for the 
                accident under section 1136(a)(2).
          (5) Consultation regarding disposition of remains and 
        effects.--An assurance that the family of each 
        passenger will be consulted about the disposition of 
        any remains and personal effects of the passenger that 
        are within the control of the foreign air carrier.
          (6) Return of possessions.--An assurance that, if 
        requested by the family of a passenger, any possession 
        (regardless of its condition) of that passenger that is 
        within the control of the foreign air carrier will be 
        returned to the family unless the possession is needed 
        for the accident investigation or a criminal 
        investigation.
          (7) Unclaimed possessions retained.--An assurance 
        that any unclaimed possession of a passenger within the 
        control of the foreign air carrier will be retained by 
        the foreign air carrier for not less than 18 months 
        after the date of the accident.
          (8) Monuments.--An assurance that the family of each 
        passenger will be consulted about construction by the 
        foreign air carrier of any monument to the passengers 
        built in the United States, including any inscription 
        on the monument.
          (9) Equal treatment of passengers.--An assurance that 
        the treatment of the families of nonrevenue passengers 
        will be the same as the treatment of the families of 
        revenue passengers.
          (10) Service and assistance to families of 
        passengers.--An assurance that the foreign air carrier 
        will work with any organization designated under 
        section 1136(a)(2) on an ongoing basis to ensure that 
        families of passengers receive an appropriate level of 
        services and assistance following an accident.
          (11) Compensation to service organizations.--An 
        assurance that the foreign air carrier will provide 
        reasonable compensation to any organization designated 
        under section 1136(a)(2) for services and assistance 
        provided by the organization.
          (12) Travel and care expenses.--An assurance that the 
        foreign air carrier will assist the family of any 
        passenger in traveling to the location of the accident 
        and provide for the physical care of the family while 
        the family is staying at such location.
          (13) Resources for plan.--An assurance that the 
        foreign air carrier will commit sufficient resources to 
        carry out the plan.
          (14) Substitute measures.--If a foreign air carrier 
        does not wish to comply with paragraph (10), (11), or 
        (12), a description of proposed adequate substitute 
        measures for the requirements of each paragraph with 
        which the foreign air carrier does not wish to comply.
          (15) Training of employees and agents.--An assurance 
        that the foreign air carrier will provide adequate 
        training to the employees and agents of the carrier to 
        meet the needs of survivors and family members 
        following an accident.
          (16) Consultation on carrier response not covered by 
        plan.-- [An assurance that the foreign air carrier] An 
        assurance that , in the event that the foreign air 
        carrier volunteers assistance to United States citizens 
        within the United States with respect to an aircraft 
        accident outside the United States involving major loss 
        of life, the foreign air carrier will consult with the 
        Board and the Department of State on the provision of 
        the assistance.
          (17) Notice concerning liability for manmade 
        structures.--
                  (A) In general.--An assurance that, in the 
                case of an accident that results in significant 
                damage to a manmade structure or other property 
                on the ground that is not government-owned, the 
                foreign air carrier will promptly provide 
                notice, in writing, to the extent practicable, 
                directly to the owner of the structure or other 
                property about liability for any property 
                damage and means for obtaining compensation.
                  (B) Minimum contents.--At a minimum, the 
                written notice shall advise an owner (i) to 
                contact the insurer of the property as the 
                authoritative source for information about 
                coverage and compensation; (ii) to not rely on 
                unofficial information offered by foreign air 
                carrier representatives about compensation by 
                the foreign air carrier for accident-site 
                property damage; and (iii) to obtain 
                photographic or other detailed evidence of 
                property damage as soon as possible after the 
                accident, consistent with restrictions on 
                access to the accident site.
          (18) Simultaneous electronic transmission of NTSB 
        hearing.--An assurance that, in the case of an accident 
        in which the National Transportation Safety Board 
        conducts a public hearing or comparable proceeding at a 
        location greater than 80 miles from the accident site, 
        the foreign air carrier will ensure that the proceeding 
        is made available simultaneously by electronic means at 
        a location open to the public at both the origin city 
        and destination city of the foreign air carrier's 
        flight if that city is located in the United States.
  (d) Permit and Exemption Requirement.--The Secretary shall 
not approve an application for a permit under section 41302 
unless the applicant has included as part of the application or 
request for exemption a plan that meets the requirements of 
subsection (c).
  (e) Limitation on Liability.--A foreign air carrier shall not 
be liable for damages in any action brought in a Federal or 
State court arising out of the performance of the foreign air 
carrier in preparing or providing a passenger list pursuant to 
a plan submitted by the foreign air carrier under subsection 
(c), unless the liability was caused by conduct of the foreign 
air carrier which was grossly negligent or which constituted 
intentional misconduct.

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                  CHAPTER 417--OPERATIONS OF CARRIERS

                       SUBCHAPTER I--REQUIREMENTS

Sec.
41701. Classification of air carriers.
     * * * * * * *
[41718. Special Rules for Ronald Reagan Washington National Airport.]
41718. Special rules for Ronald Reagan Washington National Airport.
     * * * * * * *
41725. Prohibition on certain cell phone voice communications.

SUBCHAPTER I--REQUIREMENTS

           *       *       *       *       *       *       *

Sec. 41706. Prohibitions against smoking on passenger flights

  (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).
  (c) Limitation on Applicability.--
          (1) In general.--If a foreign government objects to 
        the application of subsection (b) on the basis that 
        subsection (b) provides for an extraterritorial 
        application of the laws of the United States, the 
        Secretary shall waive the application of subsection (b) 
        to a foreign air carrier licensed by that foreign 
        government at such time as an alternative prohibition 
        negotiated under paragraph (2) becomes effective and is 
        enforced by the Secretary.
          (2) Alternative prohibition.--If, pursuant to 
        paragraph (1), a foreign government objects to the 
        prohibition under subsection (b), the Secretary shall 
        enter into bilateral negotiations with the objecting 
        foreign government to provide for an alternative 
        smoking prohibition.
  (d) Electronic Cigarettes.--
          (1) Inclusion.--The use of an electronic cigarette 
        shall be treated as smoking for purposes of this 
        section.
          (2) Electronic cigarette defined.--In this section, 
        the term ``electronic cigarette'' means a device that 
        delivers nicotine to a user of the device in the form 
        of a vapor that is inhaled to simulate the experience 
        of smoking.
  [(d)] (e) Regulations.--The Secretary shall prescribe such 
regulations as are necessary to carry out this section.

           *       *       *       *       *       *       *

Sec. 41712. Unfair and deceptive practices and unfair methods of 
                    competition

  (a) In General.--On the initiative of the Secretary of 
Transportation or the complaint of an air carrier, foreign air 
carrier, air ambulance customer, or ticket agent, and if the 
Secretary considers it is in the public interest, the Secretary 
may investigate and decide whether an air carrier, foreign air 
carrier, or ticket agent has been or is engaged in an unfair or 
deceptive practice or an unfair method of competition in air 
transportation or the sale of air transportation. If the 
Secretary, after notice and an opportunity for a hearing, finds 
that an air carrier, foreign air carrier, or ticket agent is 
engaged in an unfair or deceptive practice or unfair method of 
competition, the Secretary shall order the air carrier, foreign 
air carrier, or ticket agent to stop the practice or method. In 
this subsection, the term ``air carrier'' includes an air 
ambulance operator and the term ``air transportation'' includes 
any transportation provided by an air ambulance.
  (b) E-Ticket Expiration Notice.--It shall be an unfair or 
deceptive practice under subsection (a) for any air carrier, 
foreign air carrier, or ticket agent utilizing electronically 
transmitted tickets for air transportation to fail to notify 
the purchaser of such a ticket of its expiration date, if any.
  (c) Disclosure Requirement for Sellers of Tickets for 
Flights.--
          (1) In general.--It shall be an unfair or deceptive 
        practice under subsection (a) for any ticket agent, air 
        carrier, foreign air carrier, or other person offering 
        to sell tickets for air transportation on a flight of 
        an air carrier to fail to disclose, whether verbally in 
        oral communication or in writing in written or 
        electronic communication, prior to the purchase of a 
        ticket--
                  (A) the name of the air carrier providing the 
                air transportation; and
                  (B) if the flight has more than one flight 
                segment, the name of each air carrier providing 
                the air transportation for each such flight 
                segment.
          (2) Internet offers.--In the case of an offer to sell 
        tickets described in paragraph (1) on an Internet Web 
        site, disclosure of the information required by 
        paragraph (1) shall be provided on the first display of 
        the Web site following a search of a requested 
        itinerary in a format that is easily visible to a 
        viewer.
  (d) Full Fare Advertising.--
          (1) In general.--It shall not be an unfair or 
        deceptive practice under subsection (a) for a covered 
        entity to state in an advertisement or solicitation for 
        passenger air transportation the base airfare for the 
        air transportation if the covered entity clearly and 
        separately discloses--
                  (A) the government-imposed fees and taxes 
                associated with the air transportation; and
                  (B) the total cost of the air transportation.
          (2) Form of disclosure.--
                  (A) In general.--For purposes of paragraph 
                (1), the information described in paragraphs 
                (1)(A) and (1)(B) shall be disclosed in the 
                advertisement or solicitation in a manner that 
                clearly presents the information to the 
                consumer.
                  (B) Internet advertisements and 
                solicitations.--For purposes of paragraph (1), 
                with respect to an advertisement or 
                solicitation for passenger air transportation 
                that appears on an internet website or a mobile 
                application, the information described in 
                paragraphs (1)(A) and (1)(B) may be disclosed 
                through a link or pop-up, as such terms may be 
                defined by the Secretary, that displays the 
                information in a manner that is easily 
                accessible and viewable by the consumer.
          (3) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Base airfare.--The term ``base airfare'' 
                means the cost of passenger air transportation, 
                excluding government-imposed fees and taxes.
                  (B) Covered entity.--The term ``covered 
                entity'' means an air carrier, including an 
                indirect air carrier, foreign air carrier, 
                ticket agent, or other person offering to sell 
                tickets for passenger air transportation or a 
                tour or tour component that must be purchased 
                with air transportation.
  (e) Disclosure of Fees.--
          (1) In general.--It shall be an unfair or deceptive 
        practice under subsection (a) for any air carrier, 
        foreign air carrier, or ticket agent to fail to 
        include, in an internet fare quotation for a specific 
        itinerary in air transportation selected by a 
        consumer--
                  (A) a clear and prominent statement that 
                additional fees for checked baggage and carry-
                on baggage may apply; and
                  (B) a prominent link that connects directly 
                to a list of all such fees.
          (2) Savings provision.--Nothing in this subsection 
        may be construed to derogate or limit any 
        responsibilities of an air carrier, foreign air 
        carrier, or ticket agent under section 399.85 of title 
        14, Code of Federal Regulations, or any successor 
        provision.
  (f) Involuntarily Denied Boarding After Aircraft Boarded.--
          (1) In general.--It shall be an unfair or deceptive 
        practice under subsection (a) for an air carrier or 
        foreign air carrier subject to part 250 of title 14, 
        Code of Federal Regulations, to involuntarily deplane a 
        revenue passenger onboard an aircraft, if the revenue 
        passenger--
                  (A) is traveling on a confirmed reservation; 
                and
                  (B) checked-in for the relevant flight prior 
                to the check-in deadline.
          (2) Savings provision.--Nothing in this subsection 
        may be construed to limit the authority of an air 
        carrier, foreign air carrier, or airman to remove a 
        passenger in accordance with--
                  (A) section 91.3, 121.533(d), or 121.580 of 
                title 14, Code of Federal Regulations, or any 
                successor provision; or
                  (B) any other applicable Federal, State, or 
                local law.

           *       *       *       *       *       *       *

Sec. 41725. Prohibition on certain cell phone voice communications

  (a) Prohibition.--The Secretary of Transportation shall issue 
regulations--
          (1) to prohibit an individual on an aircraft from 
        engaging in voice communications using a mobile 
        communications device during a flight of that aircraft 
        in scheduled passenger interstate or intrastate air 
        transportation; and
          (2) that exempt from the prohibition described in 
        paragraph (1) any--
                  (A) member of the flight crew on duty on an 
                aircraft;
                  (B) flight attendant on duty on an aircraft; 
                and
                  (C) Federal law enforcement officer acting in 
                an official capacity.
  (b) Definitions.--In this section, the following definitions 
apply:
          (1) Flight.--The term ``flight'' means, with respect 
        to an aircraft, the period beginning when the aircraft 
        takes off and ending when the aircraft lands.
          (2) Mobile communications device.--
                  (A) In general.--The term ``mobile 
                communications device'' means any portable 
                wireless telecommunications equipment utilized 
                for the transmission or reception of voice 
                data.
                  (B) Limitation.--The term ``mobile 
                communications device'' does not include a 
                phone installed on an aircraft.

               SUBCHAPTER II--SMALL COMMUNITY AIR SERVICE

Sec. 41731. Definitions

  (a) General.--In this subchapter--
          (1) ``eligible place'' means a place in the United 
        States that--
                  (A)(i)(I) was an eligible point under section 
                419 of the Federal Aviation Act of 1958 before 
                October 1, 1988;
                  (II) received scheduled air transportation at 
                any time after January 1, 1990; and
                  (III) is not listed in Department of 
                Transportation Orders 89-9-37 and 89-12-52 as a 
                place ineligible for compensation under this 
                subchapter; or
                  (ii) was determined, on or after October 1, 
                1988, and before the date of the enactment of 
                the [Wendell H. Ford Aviation Investment and 
                Reform Act for the 21st Century,] FAA 
                Extension, Safety, and Security Act of 2016 
                (Public Law 114-190), under this subchapter by 
                the Secretary of Transportation to be eligible 
                to receive subsidized small community air 
                service under section 41736(a);
                  (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;
                  (C) had an average subsidy per passenger of 
                less than $1,000 during the most recent fiscal 
                year, as determined by the Secretary; and
                  (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.
          (2) ``enhanced essential air service'' means 
        scheduled air transportation to an eligible place of a 
        higher level or quality than basic essential air 
        service described in section 41732 of this title.
  (b) Limitation on Authority To Decide a Place Not an Eligible 
Place.--The Secretary may not decide that a place described in 
subsection (a)(1) of this section is not an eligible place on 
any basis that is not specifically stated in this subchapter.
  (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.
  (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.
  (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. 41736. Air transportation to noneligible places

  (a) Proposals and Decisions.--(1) A State or local government 
may propose to the Secretary of Transportation that the 
Secretary provide compensation to an air carrier to provide air 
transportation to a place that is not an eligible place under 
this subchapter. Not later than 90 days after receiving a 
proposal under this section, the Secretary shall--
          (A) decide whether to designate the place as eligible 
        to receive compensation under this section; and
          (B)(i) approve the proposal if the State or local 
        government or a person is willing and able to pay 50 
        percent of the compensation for providing the 
        transportation, and notify the State or local 
        government of the approval; or
          (ii) disapprove the proposal if the Secretary decides 
        the proposal is not reasonable under paragraph (2) of 
        this subsection, and notify the State or local 
        government of the disapproval and the reasons for the 
        disapproval.
  (2) In deciding whether a proposal is reasonable, the 
Secretary shall consider, among other factors--
          (A) the traffic-generating potential of the place;
          (B) the cost to the United States Government of 
        providing the proposed transportation; and
          (C) the distance of the place from the closest hub 
        airport.
  (b) Approval for Certain Air Transportation.--Notwithstanding 
subsection (a)(1)(B) of this section, the Secretary shall 
approve a proposal under this section to compensate an air 
carrier for providing air transportation to a place in the 48 
contiguous States or the District of Columbia and designate the 
place as eligible for compensation under this section if--
          (1) at any time before October 23, 1978, the place 
        was served by a carrier holding a certificate under 
        section 401 of the Federal Aviation Act of 1958;
          (2) the place is more than 50 miles from the nearest 
        small hub airport or an eligible place;
          (3) the place is more than 150 miles from the nearest 
        hub airport; and
          (4) the State or local government submitting the 
        proposal or a person is willing and able to pay 25 
        percent of the cost of providing the compensated 
        transportation.
Paragraph (4) does not apply to any community approved for 
service under this section during the period beginning October 
1, 1991, and ending December 31, 1997.
  (c) Level of Air Transportation.--(1) If the Secretary 
designates a place under subsection (a)(1) of this section as 
eligible for compensation under this section, the Secretary 
shall decide, not later than 6 months after the date of the 
designation, on the level of air transportation to be provided 
under this section. Before making a decision, the Secretary 
shall consider the views of any interested community, the 
appropriate State authority of the State in which the place is 
located, and the State or local government or person agreeing 
to pay compensation for the transportation under subsection 
(b)(4) of this section.
  (2) After making the decision under paragraph (1) of this 
subsection, the Secretary shall provide notice that any air 
carrier that is willing to provide the level of air 
transportation established under paragraph (1) for a place may 
submit an application to provide the transportation. In 
selecting an applicant, the Secretary shall consider, among 
other factors--
          (A) the factors listed in section 41733(c)(1) of this 
        title; and
          (B) the views of the State or local government or 
        person agreeing to pay compensation for the 
        transportation.
  (d) Compensation Payments.--(1) The Secretary shall pay 
compensation under this section when and in the way the 
Secretary decides is appropriate. The Secretary shall continue 
to pay compensation under this section only as long as--
          (A) the air carrier maintains the level of air 
        transportation established by the Secretary under 
        subsection (c)(1) of this section;
          (B) the State or local government or person agreeing 
        to pay compensation for transportation under this 
        section continues to pay that compensation; and
          (C) the Secretary decides the compensation is 
        necessary to maintain the transportation to the place.
  (2) The Secretary may require the State or local government 
or person agreeing to pay compensation under this section to 
make advance payments or provide other security to ensure that 
timely payments are made.
  (e) Review.--The Secretary shall review periodically the 
level of air transportation provided under this section. Based 
on the review and consultation with any interested community, 
the appropriate State authority of the State in which the 
community is located, and the State or local government or 
person paying compensation under this section, the Secretary 
may make appropriate adjustments in the level of 
transportation.
  (f) Withdrawal of Eligibility Designations.--After providing 
notice and an opportunity for interested persons to comment, 
the Secretary may withdraw the designation of a place under 
subsection (a)(1) of this section as eligible to receive 
compensation under this section if the place has received air 
transportation under this section for at least 2 years and the 
Secretary decides the withdrawal would be in the public 
interest. The Secretary by regulation shall prescribe standards 
for deciding whether the withdrawal of a designation under this 
subsection is in the public interest. The standards shall 
include the factors listed in subsection (a)(2) of this 
section.
  (g) Ending, Suspending, and Reducing Air Transportation.--An 
air carrier providing air transportation for compensation under 
this section may end, suspend, or reduce that transportation 
below the level of transportation established by the Secretary 
under this section only after giving the Secretary, the 
affected community, and the State or local government or person 
paying compensation under this section at least 30 days' notice 
before ending, suspending, or reducing the transportation.
  (h) Sunset.--
          (1) Proposals.--No proposal under subsection (a) may 
        be accepted by the Secretary after the date of 
        enactment of this subsection.
          (2) Program.--The Secretary may not provide any 
        compensation under this section after the date that is 
        2 years after the date of enactment of this subsection.

           *       *       *       *       *       *       *

Sec. 41742. Essential air service authorization

  (a) In General.--
          (1) Authorization.--Out of the amounts received by 
        the Federal Aviation Administration credited to the 
        account established under section 45303 of this title 
        or otherwise provided to the Administration, the sum of 
        $50,000,000 for each fiscal year is authorized and 
        shall be made available immediately for obligation and 
        expenditure to carry out the essential air service 
        program under this subchapter.
          (2) Additional funds.--In addition to amounts 
        authorized under paragraph (1), there is authorized to 
        be appropriated out of the Airport and Airway Trust 
        Fund (established under section 9502 of the Internal 
        Revenue Code of 1986) [$150,000,000 for fiscal year 
        2011, $143,000,000 for fiscal year 2012, $118,000,000 
        for fiscal year 2013, $107,000,000 for fiscal year 
        2014, $93,000,000 for fiscal year 2015, and 
        $175,000,000 for each of fiscal years 2016 and 2017] 
        $178,000,000 for fiscal year 2018, $182,000,000 for 
        fiscal year 2019, $185,000,000 for fiscal year 2020, 
        $327,000,000 for fiscal year 2021, $337,000,000 for 
        fiscal year 2022, and $347,000,000 for fiscal year 2023 
        to carry out the essential air service program under 
        this subchapter of which not more than $12,000,000 per 
        fiscal year may be used for the marketing incentive 
        program for communities and for State marketing 
        assistance.
          (3) Authorization for additional employees.--In 
        addition to amounts authorized under paragraphs (1) and 
        (2), there are authorized to be appropriated such sums 
        as may be necessary for the Secretary of Transportation 
        to hire and employ 4 additional employees for the 
        office responsible for carrying out the essential air 
        service program.
  (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.--The funds made available under 
this section shall remain available until expended.

Sec. 41743. Airports not receiving sufficient service

  (a) Small Community Air Service Development Program.--The 
Secretary of Transportation shall establish a program that 
meets the requirements of this section for improving air 
carrier service to airports not receiving sufficient air 
carrier service.
  (b) Application Required.--In order to participate in the 
program established under subsection (a), a community or 
consortium of communities shall submit an application to the 
Secretary in such form, at such time, and containing such 
information as the Secretary may require, including--
          (1) an assessment of the need of the community or 
        consortium for access, or improved access, to the 
        national air transportation system; and
          (2) an analysis of the application of the criteria in 
        subsection (c) to that community or consortium.
  (c) Criteria for Participation.--In selecting communities, or 
consortia of communities, for participation in the program 
established under subsection (a), the Secretary shall apply the 
following criteria:
          [(1) Size.--For calendar year 1997, the airport 
        serving the community or consortium was not larger than 
        a small hub airport, and--
                  [(A) had insufficient air carrier service; or
                  [(B) had unreasonably high air fares.]
          (1) Size.--On the date of submission of the relevant 
        application under subsection (b), the airport serving 
        the community or consortium--
                  (A) is not larger than a small hub airport, 
                as determined using the Department of 
                Transportation's most recently published 
                classification; and
                  (B) has--
                          (i) insufficient air carrier service; 
                        or
                          (ii) unreasonably high air fares.
          (2) Characteristics.--The airport presents 
        characteristics, such as geographic diversity or unique 
        circumstances, that will demonstrate the need for, and 
        feasibility of, the program established under 
        subsection (a).
          (3) State limit.--Not more than 4 communities or 
        consortia of communities, or a combination thereof, 
        from the same State may be selected to participate in 
        the program in any fiscal year.
          (4) Overall limit.--No more than 40 communities or 
        consortia of communities, or a combination thereof, may 
        be selected to participate in the program in each year 
        for which funds are appropriated for the program. No 
        community, consortia of communities, nor combination 
        thereof may participate in the program in support of 
        the same project more than [once,] once in a 10-year 
        period, but any community, consortia of communities, or 
        combination thereof may apply, subsequent to such 
        participation, to participate in the program in support 
        of a different project at any time .
          (5) Priorities.--The Secretary shall give priority to 
        communities or consortia of communities where--
                  (A) air fares are higher than the average air 
                fares for all communities;
                  (B) the community or consortium will provide 
                a portion of the cost of the activity to be 
                assisted under the program from local sources 
                other than airport revenues;
                  (C) the community or consortium has 
                established, or will establish, a public-
                private partnership to facilitate air carrier 
                service to the public;
                  (D) the assistance will provide material 
                benefits to a broad segment of the travelling 
                public, including business, educational 
                institutions, and other enterprises, whose 
                access to the national air transportation 
                system is limited;
                  (E) the assistance will be used to help 
                restore scheduled passenger air service that 
                has been terminated;
                  [(E)] (F) the assistance will be used in a 
                timely fashion; and
                  [(F)] (G) multiple communities cooperate to 
                submit a regional or multistate application to 
                consolidate air service into one regional 
                airport.
  (d) Types of Assistance.--The Secretary may use amounts made 
available under this section--
          (1) to provide assistance to an air carrier to 
        subsidize service to and from an underserved airport 
        for a period not to exceed 3 years;
          (2) to provide assistance to an underserved airport 
        to obtain service to and from the underserved airport; 
        and
          (3) to provide assistance to an underserved airport 
        to implement such other measures as the Secretary, in 
        consultation with such airport, considers appropriate 
        to improve air service both in terms of the cost of 
        such service to consumers and the availability of such 
        service, including improving air service through 
        marketing and promotion of air service and enhanced 
        utilization of airport facilities.
  (e) Authority To Make Agreements.--
          (1) In general.--The Secretary may make agreements to 
        provide assistance under this section.
          [(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.]
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary 
        $10,000,000 for each of fiscal years 2018 through 2023 
        to carry out this section, of which $4,800,000 per 
        fiscal year shall be used to carry out the pilot 
        program established under subsection (i). Such sums 
        shall remain available until expended.
  (f) Additional Action.--Under the program established under 
subsection (a), the Secretary shall work with air carriers 
providing service to participating communities and major air 
carriers (as defined in section 41716(a)(2)) serving large hub 
airports to facilitate joint-fare arrangements consistent with 
normal industry practice.
  (g) Designation of Responsible Official.--The Secretary shall 
designate an employee of the Department of Transportation--
          (1) to function as a facilitator between small 
        communities and air carriers;
          (2) to carry out this section;
          (3) to ensure that the Bureau of Transportation 
        Statistics collects data on passenger information to 
        assess the service needs of small communities;
          (4) to work with and coordinate efforts with other 
        Federal, State, and local agencies to increase the 
        viability of service to small communities and the 
        creation of aviation development zones; and
          (5) to provide policy recommendations to the 
        Secretary and Congress that will ensure that small 
        communities have access to quality, affordable air 
        transportation services.
  (h) Air Service Development Zone.--The Secretary shall 
designate an airport in the program as an Air Service 
Development Zone and work with the community or consortium on 
means to attract business to the area surrounding the airport, 
to develop land use options for the area, and provide data, 
working with the Department of Commerce and other agencies.
  (i) Regional Air Transportation Pilot Program.--
          (1) Establishment.--The Secretary shall establish a 
        regional air transportation pilot program to provide 
        operating assistance to air carriers in order to 
        provide air service to communities not receiving 
        sufficient air carrier service.
          (2) Grants.--The Secretary shall provide grants under 
        the program to encourage and maintain air service at 
        reasonable airfares between communities that have 
        experienced, as determined by the Secretary, 
        significant declines in air service.
          (3) Application required.--In order to participate in 
        the program, a State, local government, economic 
        development authority, or other public entity shall 
        submit to the Secretary an application, in a manner 
        that the Secretary prescribes, that contains--
                  (A) an identification of an air carrier that 
                has provided a written agreement to provide the 
                air service in partnership with the applicant;
                  (B) assurances that the applicant will 
                provide the non-Federal share and that the non-
                Federal share is not derived from airport 
                revenue;
                  (C) a proposed route structure serving not 
                more than 8 communities; and
                  (D) a timeline for commencing the air service 
                to the communities within the proposed route 
                structure.
          (4) Criteria for participation.--The Secretary may 
        approve up to 3 applications each fiscal year, subject 
        to the availability of funds, if the Secretary 
        determines that--
                  (A) the proposal of the applicant can 
                reasonably be expected to encourage and improve 
                levels of air service between the relevant 
                communities;
                  (B) the applicant has adequate financial 
                resources to ensure the commitment to the 
                communities;
                  (C) the airports serving the communities are 
                nonhub, small hub, or medium hub airports, as 
                determined using the Department of 
                Transportation's most recently published 
                classifications; and
                  (D) the air carrier commits to serving the 
                communities for at least 2 years.
          (5) Priorities.--The Secretary shall prioritize 
        applications that--
                  (A) would initiate new or reestablish air 
                service in communities where air fares are 
                higher than the average air fares for all 
                communities;
                  (B) are more likely to result in self-
                sustaining air service at the end of the 
                program;
                  (C) request a Federal share lower than 50 
                percent; and
                  (D) propose to use grant funds in a timely 
                fashion.
          (6) Federal share.--The Federal share of the cost of 
        operating assistance provided under the program may not 
        exceed 50 percent.
          (7) Sunset.--This subsection shall cease to be 
        effective on October 1, 2023.

           *       *       *       *       *       *       *

CHAPTER 419--TRANSPORTATION OF MAIL

           *       *       *       *       *       *       *

Sec. 41902. Schedules for certain transportation of mail

  (a) Requirement.--Except as provided in [section 41906] 
section 41905 of this title and section 5402 of title 39, an 
air carrier may transport mail by aircraft between places in 
Alaska only under a schedule designated or required to be 
established under subsection (c) of this section for the 
transportation of mail.
  (b) Statements on Places and Schedules.--Every air carrier 
shall file with the United States Postal Service a statement 
showing--
          (1) the places between which the carrier is 
        authorized to transport mail in Alaska;
          (2) every schedule of aircraft regularly operated by 
        the carrier between places described in paragraph (1) 
        and every change in each schedule; and
          (3) for each schedule, the places served by the 
        carrier and the time of arrival at, and departure from, 
        each such place.
  (c) Designating and Additional Schedules.--The Postal Service 
may--
          (1) designate any schedule of an air carrier filed 
        under subsection (b)(2) of this section for the 
        transportation of mail between the places between which 
        the carrier is authorized by its certificate to 
        transport mail; and
          (2) require the carrier to establish additional 
        schedules for the transportation of mail between those 
        places.
  (d) Changing Schedules.--A schedule designated or required to 
be established for the transportation of mail under subsection 
(c) of this section may be changed only after 10 days' notice 
of the change is filed as provided in subsection (b)(2) of this 
section. The Postal Service may disapprove a proposed change in 
a schedule or amend or modify the schedule or proposed change.

           *       *       *       *       *       *       *

Sec. 41907. Weighing mail

   The United States Postal Service may weigh mail transported 
by aircraft between places in Alaska and make statistical [and 
- administrative] and administrative computations necessary in 
the interest of mail service. When the Secretary of 
Transportation decides that additional or more frequent 
weighings of mail are advisable or necessary to carry out this 
part, the Postal Service shall provide the weighings, but it is 
not required to provide them for continuous periods of more 
than 30 days.

           *       *       *       *       *       *       *

            CHAPTER 423--PASSENGER AIR SERVICE IMPROVEMENTS

Sec.
42301. Emergency contingency plans.
     * * * * * * *
42304. Widespread disruptions.

           *       *       *       *       *       *       *

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 
(including transportation by air ambulance) 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, and an air ambulance 
operator, shall include [on the] in a prominent place on the 
homepage of the primary Internet Web site of the carrier or 
operator --
          (1) the hotline telephone number established under 
        subsection (a);
          (2) the e-mail address, telephone number, and mailing 
        address of the air carrier or operator 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[.]; and
          (4) the air carrier's customer service plan.
  [(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.]
  (c) Notice To Passengers on Boarding or Billing 
Documentation.--
          (1) Air carriers and foreign air carriers.--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--
                  (A) prominently displayed signs of the 
                carrier at the airport ticket counters in the 
                United States where the air carrier operates; 
                and
                  (B) any electronic confirmation of the 
                purchase of a passenger ticket for air 
                transportation issued by the air carrier.
          (2) Air ambulance operators.--An air ambulance 
        operator shall include the hotline telephone number 
        established under subsection (a) on any invoice, bill, 
        or other communication provided to a passenger or 
        customer of the operator.
  (d) Use of New Technologies.--The Secretary shall 
periodically evaluate the benefits of using mobile phone 
applications or other widely used technologies to provide new 
means for air passengers to communicate complaints in addition 
to the telephone number established under subsection (a) and 
shall provide such new means as the Secretary determines 
appropriate.

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) 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 website established under subsection (a) 
shall--
          (1) disclose, on its own internet website or through 
        other means, that the destination country may require 
        the air carrier or foreign air carrier to treat an 
        aircraft passenger cabin with insecticides prior to the 
        flight or to apply an aerosol insecticide in an 
        aircraft cabin used for such a flight when the cabin is 
        occupied with passengers; and
          (2) refer the purchaser of the ticket to the internet 
        website established under subsection (a) for additional 
        information.

Sec. 42304. Widespread disruptions

  (a) General Requirements.--In the event of a widespread 
disruption, a covered air carrier shall immediately publish, 
via a prominent link on the air carrier's public internet 
website, a clear statement indicating whether, with respect to 
a passenger of the air carrier whose travel is interrupted as a 
result of the widespread disruption, the air carrier will--
          (1) provide for hotel accommodations;
          (2) arrange for ground transportation;
          (3) provide meal vouchers;
          (4) arrange for air transportation on another air 
        carrier or foreign air carrier to the passenger's 
        destination; and
          (5) provide for sleeping facilities inside the 
        airport terminal.
  (b) Definitions.--In this section, the following definitions 
apply:
          (1) Widespread disruption.--The term ``widespread 
        disruption'' means, with respect to a covered air 
        carrier, the interruption of all or the overwhelming 
        majority of the air carrier's systemwide flight 
        operations, including flight delays and cancellations, 
        as the result of the failure of 1 or more computer 
        systems or computer networks of the air carrier.
          (2) Covered air carrier.--The term ``covered air 
        carrier'' means an air carrier that provides scheduled 
        passenger air transportation by operating an aircraft 
        that as originally designed has a passenger capacity of 
        30 or more seats.
  (c) Savings Provision.--Nothing in this section may be 
construed to modify, abridge, or repeal any obligation of an 
air carrier under section 42301.

           *       *       *       *       *       *       *

SUBPART III--SAFETY

           *       *       *       *       *       *       *

CHAPTER 441--REGISTRATION AND RECORDATION OF AIRCRAFT

           *       *       *       *       *       *       *

Sec. 44112. Limitation of liability

  (a) Definitions.--In this section--
          (1) ``lessor'' means a person leasing for at least 30 
        days a civil aircraft, aircraft engine, or propeller.
          (2) ``owner'' means a person that owns a civil 
        aircraft, aircraft engine, or propeller.
          (3) ``secured party'' means a person having a 
        security interest in, or security title to, a civil 
        aircraft, aircraft engine, or propeller under a 
        conditional sales contract, equipment trust contract, 
        chattel or corporate mortgage, or similar instrument.
  (b) Liability.--A lessor, owner, or secured party is liable 
for personal injury, death, or property loss or damage [on land 
or water] only when a civil aircraft, aircraft engine, or 
propeller is in the actual possession or operational control of 
the lessor, owner, or secured party, and the personal injury, 
death, or property loss or damage occurs because of--
          (1) the aircraft, engine, or propeller; or
          (2) the flight of, or an object falling from, the 
        aircraft, engine, or propeller.

           *       *       *       *       *       *       *

            CHAPTER 445--FACILITIES, PERSONNEL, AND RESEARCH

Sec. 44501. Plans and policy

  (a) Long Range Plans and Policy Requirements.--The 
Administrator of the Federal Aviation Administration shall make 
long range plans and policy for the orderly development and use 
of the navigable airspace, and the orderly development and 
location of air navigation facilities, that will best meet the 
needs of, and serve the interests of, civil aeronautics and the 
national defense, except for needs of the armed forces that are 
peculiar to air warfare and primarily of military concern.
  (b) Airway Capital Investment Plan.-- [The Administrator] 
Before the date of transfer (as defined in section 90101(a)), 
the Administrator of the Federal Aviation Administration shall 
review, revise, and publish a national airways system plan, 
known as the Airway Capital Investment Plan, before the 
beginning of each fiscal year. The plan shall set forth--
          (1) for a 10-year period, the research, engineering, 
        and development programs and the facilities and 
        equipment that the Administrator considers necessary 
        for a system of airways, air traffic services, and 
        navigation aids that will--
                  (A) meet the forecasted needs of civil 
                aeronautics;
                  (B) meet the requirements that the Secretary 
                of Defense establishes for the support of the 
                national defense; and
                  (C) provide the highest degree of safety in 
                air commerce;
          (2) for the first and 2d years of the plan, detailed 
        annual estimates of--
                  (A) the number, type, location, and cost of 
                acquiring, operating, and maintaining required 
                facilities and services;
                  (B) the cost of research, engineering, and 
                development required to improve safety, system 
                capacity, and efficiency; and
                  (C) personnel levels required for the 
                activities described in subclauses (A) and (B) 
                of this clause;
          (3) for the 3d, 4th, and 5th years of the plan, 
        estimates of the total cost of each major program for 
        the 3-year period, and additional major research 
        programs, acquisition of systems and facilities, and 
        changes in personnel levels that may be required to 
        meet long range objectives and that may have 
        significant impact on future funding requirements;
          (4) a 10-year investment plan that considers long 
        range objectives that the Administrator considers 
        necessary to--
                  (A) ensure that safety is given the highest 
                priority in providing for a safe and efficient 
                airway system; and
                  (B) meet the current and projected growth of 
                aviation and the requirements of interstate 
                commerce, the United States Postal Service, and 
                the national defense; [and]
          (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)[.]; and
          (6) for fiscal years 2017 through 2020, a process 
        under which the Administrator shall continue to comply 
        with the requirements of this section before the date 
        of transfer (as defined in section 90101(a)).
  (c) National Aviation Research Plan.--(1) The Administrator 
of the Federal Aviation Administration shall prepare and 
publish annually a national aviation research plan and submit 
the plan to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Science of 
the House of Representatives. The plan shall be submitted not 
later than the date of submission of the President's budget to 
Congress.
  (2)(A) The plan shall describe, for a 5-year period, the 
research, engineering, and development that the Administrator 
of the Federal Aviation Administration considers necessary--
          (i) to ensure the continued capacity, safety, and 
        efficiency of aviation in the United States, 
        considering emerging technologies and forecasted needs 
        of civil aeronautics; and
          (ii) to provide the highest degree of safety in air 
        travel.
  (B) The plan shall--
          (i) provide estimates by year of the schedule, cost, 
        and work force levels for each active and planned major 
        research and development project under sections 40119, 
        44504, 44505, 44507, 44509, 44511-44513, and 44912 of 
        this title, including activities carried out under 
        cooperative agreements with other Federal departments 
        and agencies;
          (ii) specify the goals and the priorities for 
        allocation of resources among the major categories of 
        research and development activities, including the 
        rationale for the priorities identified;
          (iii) identify the allocation of resources among 
        long-term research, near-term research, and development 
        activities;
          (iv) identify the individual research and development 
        projects in each funding category that are described in 
        the annual budget request;
          (v) highlight the research and development activities 
        that address specific recommendations of the research 
        advisory committee established under section 44508 of 
        this title, and document the recommendations of the 
        committee that are not accepted, specifying the reasons 
        for nonacceptance; and
          (vi) highlight the research and development 
        technology transfer activities that promote technology 
        sharing among government, industry, and academia 
        through the Stevenson-Wydler Technology Innovation Act 
        of 1980.
  (3) Subject to section 40119(b) of this title and regulations 
prescribed under section 40119(b), the Administrator of the 
Federal Aviation Administration shall submit to the committees 
named in paragraph (1) of this subsection an annual report on 
the accomplishments of the research completed during the prior 
fiscal year, including a description of the dissemination to 
the private sector of research results and a description of any 
new technologies developed. The report shall be submitted with 
the plan required under paragraph (1) and be organized to allow 
comparison with the plan in effect for the prior fiscal year. 
The report shall be prepared in accordance with requirements of 
section 1116 of title 31.

Sec. 44502. General facilities and personnel authority

  (a) General Authority.--(1) [The Administrator of the Federal 
Aviation Administration may] Before the date of transfer (as 
defined in section 90101(a)), the Secretary of Transportation 
may --
          (A) acquire, establish, improve, operate, and 
        maintain air navigation facilities; and
          (B) provide facilities and personnel to regulate and 
        protect air traffic.
  (2) [The cost] Before the date of transfer (as defined in 
section 90101(a)), the cost of site preparation work associated 
with acquiring, establishing, or improving an air navigation 
facility under paragraph (1)(A) of this subsection shall be 
charged to amounts available for that purpose appropriated 
under section 48101(a) of this title. The Secretary of 
Transportation may make an agreement with an airport owner or 
sponsor (as defined in section 47102 of this title) so that the 
owner or sponsor will provide the work and be paid or 
reimbursed by the Secretary from the appropriated amounts.
  (3) [The Secretary] Before the date of transfer (as defined 
in section 90101(a)), the Secretary of Transportation may 
authorize a department, agency, or instrumentality of the 
United States Government to carry out any duty or power under 
this subsection with the consent of the head of the department, 
agency, or instrumentality.
  [(4) Purchase of instrument landing system.--
          [(A) Establishment of program.--The Secretary shall 
        purchase precision approach instrument landing system 
        equipment for installation at airports on an expedited 
        basis.
          [(B) Authorization.--No less than $30,000,000 of the 
        amounts appropriated under section 48101(a) for each of 
        fiscal years 2000 through 2002 shall be used for the 
        purpose of carrying out this paragraph, including 
        acquisition under new or existing contracts, site 
        preparation work, installation, and related 
        expenditures.]
  [(5)] (4) Improvements on leased properties.-- [The 
Administrator] Before the date of transfer (as defined in 
section 90101(a)), the Secretary of Transportation may make 
improvements to real property leased for no or nominal 
consideration for an air navigation facility, regardless of 
whether the cost of making the improvements exceeds the cost of 
leasing the real property, if--
          (A) the improvements primarily benefit the 
        Government;
          (B) the improvements are essential for accomplishment 
        of the mission of the Federal Aviation Administration; 
        and
          (C) the interest of the United States Government in 
        the improvements is protected.
  (b) Certification of Necessity.-- [Except] Before the date of 
transfer (as defined in section 90101(a)), except for 
Government money expended under this part or for a military 
purpose, Government money may be expended to acquire, 
establish, construct, operate, repair, alter, or maintain an 
air navigation facility only if [the Administrator of the 
Federal Aviation Administration] the Secretary of 
Transportation certifies in writing that the facility is 
reasonably necessary for use in air commerce or for the 
national defense. An interested person may apply for a 
certificate for a facility to be acquired, established, 
constructed, operated, repaired, altered, or maintained by or 
for the person.
  (c) Ensuring Conformity With Plans and Policies.--(1) To 
ensure conformity with plans and policies for, and allocation 
of, airspace [by the Administrator of the Federal Aviation 
Administration under section 40103(b)(1) of this title], a 
military airport, military landing area, or missile or rocket 
site may be acquired, established, or constructed, or a runway 
may be altered substantially, only if the [Administrator of the 
Federal Aviation Administration] Secretary of Transportation is 
given reasonable prior notice so that the [Administrator of the 
Federal Aviation Administration] Secretary of Transportation 
may advise the appropriate committees of [Congress] Congress, 
the American Air Navigation Services Corporation, and 
interested departments, agencies, and instrumentalities of the 
Government on the effect of the acquisition, establishment, 
construction, or alteration on the use of airspace by aircraft. 
A disagreement between the [Administrator of the Federal 
Aviation Administration] Secretary of Transportation and the 
Secretary of Defense or the Administrator of the National 
Aeronautics and Space Administration may be appealed to the 
President for a final decision.
  (2) To ensure conformity, an airport or landing area not 
involving the expenditure of Government money may be 
established or constructed, or a runway may be altered 
substantially, only if the [Administrator of the Federal 
Aviation Administration] Secretary of Transportation is given 
reasonable prior notice so [that the Administrator] that the 
Secretary may provide advice on the effects of the 
establishment, construction, or alteration on the use of 
airspace by aircraft.
  (d) Public Use and Emergency Assistance.--(1) The head of a 
department, agency, or instrumentality of the Government having 
jurisdiction over an air navigation facility owned or operated 
by the Government may provide, under regulations the head of 
the department, agency, or instrumentality prescribes, for 
public use of the facility.
  (2) The head of a department, agency, or instrumentality of 
the Government having jurisdiction over an airport or emergency 
landing field owned or operated by the Government may provide, 
under regulations the head of the department, agency, or 
instrumentality prescribes, for assistance, and the sale of 
fuel, oil, equipment, and supplies, to an aircraft, but only 
when necessary, because of an emergency, to allow the aircraft 
to continue to the nearest airport operated by private 
enterprise. The head of the department, agency, or 
instrumentality shall provide for the assistance and sale at 
the prevailing local fair market value as determined by the 
head of the department, agency, or instrumentality. An amount 
that the head decides is equal to the cost of the assistance 
provided and the fuel, oil, equipment, and supplies sold shall 
be credited to the appropriation from which the cost was paid. 
The balance shall be credited to miscellaneous receipts.
  (e) Transfers of Instrument Landing Systems.-- [An airport 
may transfer] Before the date of transfer (as defined in 
section 90101(a)), an airport may transfer , without 
consideration, to the Administrator of the Federal Aviation 
Administration an instrument landing system (and associated 
approach lighting equipment and runway visual range equipment) 
that conforms to performance specifications of the 
Administrator if a Government airport aid program, airport 
development aid program, or airport improvement project grant 
was used to assist in purchasing the system. The Administrator 
shall accept the system and operate and maintain it under 
criteria of the Administrator.
  (f) Airport Space.--
          (1) In general.--Except as provided in paragraph (2), 
        the Administrator of the Federal Aviation 
        Administration may not require an airport owner, 
        operator, or sponsor (as defined in section 47102) to 
        provide building construction, maintenance, utilities, 
        administrative support, or space on airport property to 
        the Federal Aviation Administration without adequate 
        compensation.
          (2) Exceptions.--Paragraph (1) does not apply in any 
        case in which an airport owner, operator, or sponsor--
                  (A) provides land or buildings without 
                compensation prior to the date of transfer (as 
                defined in section 90101(a)) to the Federal 
                Aviation Administration for facilities used to 
                carry out activities related to air traffic 
                control or navigation pursuant to a grant 
                assurance; or
                  (B) provides goods or services to the Federal 
                Aviation Administration without compensation or 
                at below-market rates pursuant to a negotiated 
                agreement between the owner, operator, or 
                sponsor and the Administrator.

           *       *       *       *       *       *       *

Sec. 44506. Air traffic controllers

  (a) Research on Effect of Automation on Performance.--To 
develop the means necessary to establish appropriate selection 
criteria and training methodologies for the next generation of 
air traffic controllers, the Administrator of the Federal 
Aviation Administration shall conduct research to study the 
effect of automation on the performance of the next generation 
of air traffic controllers and the air traffic control system. 
The research shall include investigating--
          (1) methods for improving and accelerating future air 
        traffic controller training through the application of 
        advanced training techniques, including the use of 
        simulation technology;
          (2) the role of automation in the air traffic control 
        system and its physical and psychological effects on 
        air traffic controllers;
          (3) the attributes and aptitudes needed to function 
        well in a highly automated air traffic control system 
        and the development of appropriate testing methods for 
        identifying individuals with those attributes and 
        aptitudes;
          (4) innovative methods for training potential air 
        traffic controllers to enhance the benefits of 
        automation and maximize the effectiveness of the air 
        traffic control system; and
          (5) new technologies and procedures for exploiting 
        automated communication systems, including Mode S 
        Transponders, to improve information transfers between 
        air traffic controllers and aircraft pilots.
  (b) Research on Human Factor Aspects of Automation.--The 
Administrators of the Federal Aviation Administration and 
National Aeronautics and Space Administration may make an 
agreement for the use of the National Aeronautics and Space 
Administration's unique human factor facilities and expertise 
in conducting research activities to study the human factor 
aspects of the highly automated environment for the next 
generation of air traffic controllers. The research activities 
shall include investigating--
          (1) human perceptual capabilities and the effect of 
        computer-aided decision making on the workload and 
        performance of air traffic controllers;
          (2) information management techniques for advanced 
        air traffic control display systems; and
          (3) air traffic controller workload and performance 
        measures, including the development of predictive 
        models.
  (c) Collegiate Training Initiative.--(1) The Administrator of 
the Federal Aviation Administration may maintain the Collegiate 
Training Initiative program by making new agreements and 
continuing existing agreements with institutions of higher 
education (as defined by the Administrator) under which the 
institutions prepare students for the position of air traffic 
controller with the Department of Transportation (as defined in 
section 2109 of title 5). The Administrator may establish 
standards for the entry of institutions into the program and 
for their continued participation.
  (2)(A) The Administrator of the Federal Aviation 
Administration may appoint an individual who has successfully 
completed a course of training in a program described in 
paragraph (1) of this subsection to the position of air traffic 
controller noncompetitively in the excepted service (as defined 
in section 2103 of title 5). An individual appointed under this 
paragraph serves at the pleasure of the Administrator, subject 
to section 7511 of title 5. However, an appointment under this 
paragraph may be converted from one in the excepted service to 
a career conditional or career appointment in the competitive 
civil service (as defined in section 2102 of title 5) when the 
individual achieves full performance level air traffic 
controller status, as decided by the Administrator.
  (B) The authority under subparagraph (A) of this paragraph to 
make appointments in the excepted service expires on October 6, 
1997, except that the Administrator of the Federal Aviation 
Administration may extend the authority for one or more 
successive one-year periods.
  (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.
  (e) Staffing Report.--The Administrator of the Federal 
Aviation Administration shall submit annually 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--
          (1) the staffing standards used to determine the 
        number of air traffic controllers needed to operate the 
        air traffic control system of the United States;
          (2) a 3-year projection of the number of controllers 
        needed to be employed to operate the system to meet the 
        standards; and
          (3) a detailed plan for employing the controllers, 
        including projected budget requests.
  (f) Hiring of Certain Air Traffic Control Specialists.--
          (1) Consideration of applicants.--
                  (A) Ensuring selection of most qualified 
                applicants.--In appointing individuals to the 
                position of air traffic controller, the 
                Administrator shall give preferential 
                consideration to qualified individuals 
                maintaining 52 consecutive weeks of air traffic 
                control experience involving the full-time 
                active separation of air traffic after receipt 
                of an air traffic certification or air traffic 
                control facility rating within 5 years of 
                application while serving at--
                          (i) a Federal Aviation Administration 
                        air traffic control facility;
                          (ii) a civilian or military air 
                        traffic control facility of the 
                        Department of Defense; or
                          (iii) a tower operating under 
                        contract with the Federal Aviation 
                        Administration under section 47124.
                  (B) Consideration of additional applicants.--
                          (i) In general.--After giving 
                        preferential consideration to 
                        applicants under subparagraph (A), the 
                        Administrator shall consider additional 
                        applicants for the position of air 
                        traffic controller by referring an 
                        approximately equal number of 
                        individuals for appointment among the 2 
                        applicant pools described in this 
                        subparagraph. The number of individuals 
                        referred for consideration from each 
                        group shall not differ by more than 10 
                        percent.
                          (ii) Pool 1.--Pool 1 applicants are 
                        individuals who--
                                  (I) have successfully 
                                completed air traffic 
                                controller training and 
                                graduated from an institution 
                                participating in the Collegiate 
                                Training Initiative program 
                                maintained under subsection 
                                (c)(1) and who have received 
                                from the institution--
                                          (aa) an appropriate 
                                        recommendation; or
                                          (bb) an endorsement 
                                        certifying that the 
                                        individual would have 
                                        met the requirements in 
                                        effect as of December 
                                        31, 2013, for an 
                                        appropriate 
                                        recommendation;
                                  (II) are eligible for a 
                                veterans recruitment 
                                appointment pursuant to section 
                                4214 of title 38 and provide a 
                                Certificate of Release or 
                                Discharge from Active Duty 
                                within 120 days of the 
                                announcement closing;
                                  (III) are eligible veterans 
                                (as defined in section 4211 of 
                                title 38) maintaining aviation 
                                experience obtained in the 
                                course of the individual's 
                                military experience; or
                                  (IV) are preference eligible 
                                veterans (as defined in section 
                                2108 of title 5).
                          (iii) Pool 2.--Pool 2 applicants are 
                        individuals who apply under a vacancy 
                        announcement recruiting from all United 
                        States citizens.
          (2) Use of biographical assessments.--
                  (A) Biographical assessments.--The 
                Administrator shall not use any biographical 
                assessment when hiring under paragraph (1)(A) 
                or paragraph (1)(B)(ii).
                  (B) Reconsideration of applicants 
                disqualified on basis of biographical 
                assessments.--
                          (i) In general.--If an individual 
                        described in paragraph (1)(A) or 
                        paragraph (1)(B)(ii), who applied for 
                        the position of air traffic controller 
                        with the Administration in response to 
                        Vacancy Announcement FAA-AMC-14-
                        ALLSRCE-33537 (issued on February 10, 
                        2014), was disqualified from the 
                        position as the result of a 
                        biographical assessment, the 
                        Administrator shall provide the 
                        applicant an opportunity to reapply for 
                        the position as soon as practicable 
                        under the revised hiring practices.
                          (ii) Waiver of age restriction.--The 
                        Administrator shall waive any maximum 
                        age restriction for the position of air 
                        traffic controller with the 
                        Administration that would otherwise 
                        disqualify an individual from the 
                        position if the individual--
                                  (I) is reapplying for the 
                                position pursuant to clause (i) 
                                on or before December 31, 2017; 
                                and
                                  (II) met the maximum age 
                                requirement on the date of the 
                                individual's previous 
                                application for the position 
                                during the interim hiring 
                                process.
          (3) Maximum entry age for experienced controllers.--
        Notwithstanding section 3307 of title 5, except for 
        individuals covered by a program described in paragraph 
        (4), the maximum limit of age for an original 
        appointment to a position as an air traffic controller 
        shall be 35 years of age for those maintaining 52 weeks 
        of air traffic control experience involving the full-
        time active separation of air traffic after receipt of 
        an air traffic certification or air traffic control 
        facility rating in a civilian or military air traffic 
        control facility.
          (4) Retired military controllers.--The Administrator 
        may establish a program to provide an original 
        appointment to a position as an air traffic controller 
        for individuals who--
                  (A) are on terminal leave pending retirement 
                from active duty military service or have 
                retired from active duty military service 
                within 5 years of applying for the appointment; 
                and
                  (B) within 5 years of applying for the 
                appointment, have held either an air traffic 
                control specialist certification or a facility 
                rating according to Administration standards.

           *       *       *       *       *       *       *

                     CHAPTER 447--SAFETY REGULATION

Sec.
44701. General requirements.
     * * * * * * *
44736. Organization designation authorizations.
44737. Training on human trafficking for certain staff.

Sec. 44701. General requirements

  (a) Promoting Safety.--The Administrator of the Federal 
Aviation Administration shall promote safe flight of civil 
aircraft in air commerce by prescribing--
          (1) minimum standards required in the interest of 
        safety for appliances and for the design, material, 
        construction, quality of work, and performance of 
        aircraft, aircraft engines, and propellers;
          (2) regulations and minimum standards in the interest 
        of safety for--
                  (A) inspecting, servicing, and overhauling 
                aircraft, aircraft engines, propellers, and 
                appliances;
                  (B) equipment and facilities for, and the 
                timing and manner of, the inspecting, 
                servicing, and overhauling; and
                  (C) a qualified private person, instead of an 
                officer or employee of the Administration, to 
                examine and report on the inspecting, 
                servicing, and overhauling;
          (3) regulations required in the interest of safety 
        for the reserve supply of aircraft, aircraft engines, 
        propellers, appliances, and aircraft fuel and oil, 
        including the reserve supply of fuel and oil carried in 
        flight;
          (4) regulations in the interest of safety for the 
        maximum hours or periods of service of airmen and other 
        employees of air carriers; and
          (5) regulations and minimum standards for other 
        practices, methods, and procedure the Administrator 
        finds necessary for safety in air commerce and national 
        security.
  (b) Prescribing Minimum Safety Standards.--The Administrator 
may prescribe minimum safety standards for--
          (1) an air carrier to whom a certificate is issued 
        under section 44705 of this title; and
          (2) operating an airport serving any passenger 
        operation of air carrier aircraft designed for at least 
        31 passenger seats.
  (c) Reducing and Eliminating Accidents.--The Administrator 
shall carry out this chapter in a way that best tends to reduce 
or eliminate the possibility or recurrence of accidents in air 
transportation. However, the Administrator is not required to 
give preference either to air transportation or to other air 
commerce in carrying out this chapter.
  (d) Considerations and Classification of Regulations and 
Standards.--When prescribing a regulation or standard under 
subsection (a) or (b) of this section or any of sections 44702-
44716 of this title, the Administrator shall--
          (1) consider--
                  (A) the duty of an air carrier to provide 
                service with the highest possible degree of 
                safety in the public interest; and
                  (B) differences between air transportation 
                and other air commerce; and
          (2) classify a regulation or standard appropriate to 
        the differences between air transportation and other 
        air commerce.
  (e) Bilateral Exchanges of Safety Oversight 
Responsibilities.--
          (1) In general.--Notwithstanding the provisions of 
        this chapter, the Administrator, pursuant to Article 83 
        bis of the Convention on International Civil Aviation 
        and by a bilateral agreement with the aeronautical 
        authorities of another country, may exchange with that 
        country all or part of their respective functions and 
        duties with respect to registered aircraft under the 
        following articles of the Convention: Article 12 (Rules 
        of the Air); Article 31 (Certificates of 
        Airworthiness); or Article 32a (Licenses of Personnel).
          (2) Relinquishment and acceptance of 
        responsibility.--The Administrator relinquishes 
        responsibility with respect to the functions and duties 
        transferred by the Administrator as specified in the 
        bilateral agreement, under the Articles listed in 
        paragraph (1) for United States-registered aircraft 
        described in paragraph (4)(A) transferred abroad and 
        accepts responsibility with respect to the functions 
        and duties under those Articles for aircraft registered 
        abroad and described in paragraph (4)(B) that are 
        transferred to the United States.
          (3) Conditions.--The Administrator may predicate, in 
        the agreement, the transfer of functions and duties 
        under this subsection on any conditions the 
        Administrator deems necessary and prudent, except that 
        the Administrator may not transfer responsibilities for 
        United States registered aircraft described in 
        paragraph (4)(A) to a country that the Administrator 
        determines is not in compliance with its obligations 
        under international law for the safety oversight of 
        civil aviation.
          (4) Registered aircraft defined.--In this subsection, 
        the term ``registered aircraft'' means--
                  (A) aircraft registered in the United States 
                and operated pursuant to an agreement for the 
                lease, charter, or interchange of the aircraft 
                or any similar arrangement by an operator that 
                has its principal place of business or, if it 
                has no such place of business, its permanent 
                residence in another country; and
                  (B) aircraft registered in a foreign country 
                and operated under an agreement for the lease, 
                charter, or interchange of the aircraft or any 
                similar arrangement by an operator that has its 
                principal place of business or, if it has no 
                such place of business, its permanent residence 
                in the United States.
          (5) Foreign airworthiness directives.--
                  (A) Acceptance.--The Administrator may accept 
                an airworthiness directive issued by an 
                aeronautical safety authority of a foreign 
                country, and leverage that authority's 
                regulatory process, if--
                          (i) the country is the state of 
                        design for the product that is the 
                        subject of the airworthiness directive;
                          (ii) the United States has a 
                        bilateral safety agreement relating to 
                        aircraft certification with the 
                        country;
                          (iii) as part of the bilateral safety 
                        agreement with the country, the 
                        Administrator has determined that such 
                        aeronautical safety authority has a 
                        certification system relating to safety 
                        that produces a level of safety 
                        equivalent to the level produced by the 
                        system of the Federal Aviation 
                        Administration;
                          (iv) the aeronautical safety 
                        authority of the country utilizes an 
                        open and transparent notice and comment 
                        process in the issuance of 
                        airworthiness directives; and
                          (v) the airworthiness directive is 
                        necessary to provide for the safe 
                        operation of the aircraft subject to 
                        the directive.
                  (B) Alternative approval process.--
                Notwithstanding subparagraph (A), the 
                Administrator may issue a Federal Aviation 
                Administration airworthiness directive instead 
                of accepting an airworthiness directive 
                otherwise eligible for acceptance under such 
                subparagraph, if the Administrator determines 
                that such issuance is necessary for safety or 
                operational reasons due to the complexity or 
                unique features of the Federal Aviation 
                Administration airworthiness directive or the 
                United States aviation system.
                  (C) Alternative means of compliance.--The 
                Administrator may--
                          (i) accept an alternative means of 
                        compliance, with respect to an 
                        airworthiness directive accepted under 
                        subparagraph (A), that was approved by 
                        the aeronautical safety authority of 
                        the foreign country that issued the 
                        airworthiness directive; or
                          (ii) notwithstanding subparagraph 
                        (A), and at the request of any person 
                        affected by an airworthiness directive 
                        accepted under such subparagraph, 
                        approve an alternative means of 
                        compliance with respect to the 
                        airworthiness directive.
                  (D) Limitation.--The Administrator may not 
                accept an airworthiness directive issued by an 
                aeronautical safety authority of a foreign 
                country if the airworthiness directive 
                addresses matters other than those involving 
                the safe operation of an aircraft.
  (f) Exemptions.--The Administrator may grant an exemption 
from a requirement of a regulation prescribed under subsection 
(a) or (b) of this section or any of sections 44702-44716 of 
this title if the Administrator finds the exemption is in the 
public interest.

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Sec. 44704. Type certificates, production certificates, [airworthiness 
                    certificates,,]  airworthiness certificates, and 
                    design and production organization certificates

  (a) Type Certificates.--
          (1) Issuance, investigations, and tests.--The 
        Administrator of the Federal Aviation Administration 
        shall issue a type certificate for an aircraft, 
        aircraft engine, or propeller, or for an appliance 
        specified under paragraph (2)(A) of this subsection 
        when the Administrator finds that the aircraft, 
        aircraft engine, propeller, or appliance is properly 
        designed and manufactured, performs properly, and meets 
        the regulations and minimum standards prescribed under 
        section 44701(a) of this title. On receiving an 
        application for a type certificate, the Administrator 
        shall investigate the application and may conduct a 
        hearing. The Administrator shall make, or require the 
        applicant to make, tests the Administrator considers 
        necessary in the interest of safety.
          (2) Specifications.--The Administrator may--
                  (A) specify in regulations those appliances 
                that reasonably require a type certificate in 
                the interest of safety;
                  (B) include in a type certificate terms 
                required in the interest of safety; and
                  (C) record on the certificate a numerical 
                specification of the essential factors related 
                to the performance of the aircraft, aircraft 
                engine, or propeller for which the certificate 
                is issued.
          (3) Special rules for new aircraft and appliances.--
        Except as provided in paragraph (4), if the holder of a 
        type certificate agrees to permit another person to use 
        the certificate to manufacture a new aircraft, aircraft 
        engine, propeller, or appliance, the holder shall 
        provide the other person with written evidence, in a 
        form acceptable to the Administrator, of that 
        agreement. Such other person may manufacture a new 
        aircraft, aircraft engine, propeller, or appliance 
        based on a type certificate only if such other person 
        is the holder of the type certificate or has permission 
        from the holder.
          (4) Limitation for aircraft manufactured before 
        august 5, 2004.--Paragraph (3) shall not apply to a 
        person who began the manufacture of an aircraft before 
        August 5, 2004, and who demonstrates to the 
        satisfaction of the Administrator that such manufacture 
        began before August 5, 2004, if the name of the holder 
        of the type certificate for the aircraft does not 
        appear on the airworthiness certificate or 
        identification plate of the aircraft. The holder of the 
        type certificate for the aircraft shall not be 
        responsible for the continued airworthiness of the 
        aircraft. A person may invoke the exception provided by 
        this paragraph with regard to the manufacture of only 
        one aircraft.
          (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.
          (6) Type certification resolution process.--
                  (A) In general.--Not later than 15 months 
                after the date of enactment of this paragraph, 
                the Administrator shall establish an effective, 
                timely, and milestone-based issue resolution 
                process for type certification activities under 
                this subsection.
                  (B) Process requirements.--The resolution 
                process shall provide for--
                          (i) resolution of technical issues at 
                        pre-established stages of the 
                        certification process, as agreed to by 
                        the Administrator and the type 
                        certificate applicant;
                          (ii) automatic elevation to 
                        appropriate management personnel of the 
                        Federal Aviation Administration and the 
                        type certificate applicant of any major 
                        certification process milestone that is 
                        not completed or resolved within a 
                        specific period of time agreed to by 
                        the Administrator and the type 
                        certificate applicant; and
                          (iii) resolution of a major 
                        certification process milestone 
                        elevated pursuant to clause (ii) within 
                        a specific period of time agreed to by 
                        the Administrator and the type 
                        certificate applicant.
                  (C) Major certification process milestone 
                defined.--In this paragraph, the term ``major 
                certification process milestone'' means a 
                milestone related to a type certification 
                basis, type certification plan, type inspection 
                authorization, issue paper, or other major type 
                certification activity agreed to by the 
                Administrator and the type certificate 
                applicant.
  (b) Supplemental Type Certificates.--
          (1) Issuance.--The Administrator may issue a type 
        certificate designated as a supplemental type 
        certificate for a change to an aircraft, aircraft 
        engine, propeller, or appliance.
          (2) Contents.--A supplemental type certificate issued 
        under paragraph (1) shall consist of the change to the 
        aircraft, aircraft engine, propeller, or appliance with 
        respect to the previously issued type certificate for 
        the aircraft, aircraft engine, propeller, or appliance.
          (3) Requirement.--If the holder of a supplemental 
        type certificate agrees to permit another person to use 
        the certificate to modify an aircraft, aircraft engine, 
        propeller, or appliance, the holder shall provide the 
        other person with written evidence, in a form 
        acceptable to the Administrator, of that agreement. A 
        person may change an aircraft, aircraft engine, 
        propeller, or appliance based on a supplemental type 
        certificate only if the person requesting the change is 
        the holder of the supplemental type certificate or has 
        permission from the holder to make the change.
  (c) Production Certificates.--The Administrator shall issue a 
production certificate authorizing the production of a 
duplicate of an aircraft, aircraft engine, propeller, or 
appliance for which a type certificate has been issued when the 
Administrator finds the duplicate will conform to the 
certificate. On receiving an application, the Administrator 
shall inspect, and may require testing of, a duplicate to 
ensure that it conforms to the requirements of the certificate. 
The Administrator may include in a production certificate terms 
required in the interest of safety.
  (d) Airworthiness Certificates.--(1) The registered owner of 
an aircraft may apply to the Administrator for an airworthiness 
certificate for the aircraft. The Administrator shall issue an 
airworthiness certificate when the Administrator finds that the 
aircraft conforms to its type certificate and, after 
inspection, is in condition for safe operation. The 
Administrator shall register each airworthiness certificate and 
may include appropriate information in the certificate. The 
certificate number or other individual designation the 
Administrator requires shall be displayed on the aircraft. The 
Administrator may include in an airworthiness certificate terms 
required in the interest of safety.
  (2) A person applying for the issuance or renewal of an 
airworthiness certificate for an aircraft for which ownership 
has not been recorded under section 44107 or 44110 of this 
title must submit with the application information related to 
the ownership of the aircraft the Administrator decides is 
necessary to identify each person having a property interest in 
the aircraft and the kind and extent of the interest.
  (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.
  (f) Funding for Additional Safety Needs.--
          (1) Acceptance of applicant-provided funds.--
        Notwithstanding any other provision of law, the 
        Administrator may accept funds from an applicant for a 
        certificate under this section to hire additional staff 
        or obtain the services of consultants and experts to 
        facilitate the timely processing, review, and issuance 
        of certificates under this section.
          (2) Rules of construction.--
                  (A) In general.--Nothing in this section may 
                be construed as permitting the Administrator to 
                grant priority or afford any preference to an 
                applicant providing funds under paragraph (1).
                  (B) Policies and procedures.--The 
                Administrator shall implement such policies and 
                procedures as may be required to ensure that 
                the acceptance of funds under paragraph (1) 
                does not prejudice the Administrator in the 
                issuance of any certificate to an applicant.
          (3) Receipts credited as offsetting collections.--
        Notwithstanding section 3302 of title 31, any funds 
        accepted under this subsection--
                  (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. 44718. Structures interfering with air commerce or national 
                    security

  (a) Notice.--By regulation or by order when necessary, the 
Secretary of Transportation shall require a person to give 
adequate public notice, in the form and way the Secretary 
prescribes, of the construction, alteration, establishment, or 
expansion, or the proposed construction, alteration, 
establishment, or expansion, of a structure or sanitary 
landfill when the notice will promote--
          (1) safety in air commerce;
          (2) the efficient use and preservation of the 
        navigable airspace and of airport traffic capacity at 
        public-use airports; or
          (3) the interests of national security, as determined 
        by the Secretary of Defense.
  (b) Studies.--
          (1) In general.--Under regulations prescribed by the 
        Secretary, if the Secretary decides that constructing 
        or altering a structure may result in an obstruction of 
        the navigable airspace, an interference with [air 
        navigation facilities and equipment] air or space 
        navigation facilities and equipment or the navigable 
        airspace, or, after consultation with the Secretary of 
        Defense, an adverse impact on military operations and 
        readiness, the Secretary of Transportation shall 
        conduct an aeronautical study to decide the extent of 
        any adverse impact on the safe and efficient use of the 
        airspace, facilities, or equipment. In conducting the 
        study, the Secretary shall--
                  (A) consider factors relevant to the 
                efficient and effective use of the navigable 
                airspace, including--
                          (i) the impact on arrival, departure, 
                        and en route procedures for aircraft 
                        operating under visual flight rules;
                          (ii) the impact on arrival, 
                        departure, and en route procedures for 
                        aircraft operating under instrument 
                        flight rules;
                          (iii) the impact on existing public-
                        use airports and aeronautical 
                        facilities;
                          (iv) the impact on planned public-use 
                        airports and aeronautical facilities;
                          (v) the cumulative impact resulting 
                        from the proposed construction or 
                        alteration of a structure when combined 
                        with the impact of other existing or 
                        proposed structures; [and]
                          (vi) the impact on launch and reentry 
                        for launch and reentry vehicles 
                        arriving or departing from a launch 
                        site or reentry site licensed by the 
                        Secretary of Transportation; and
                          [(vi)] (vii) other factors relevant 
                        to the efficient and effective use of 
                        navigable airspace; and
                  (B) include the finding made by the Secretary 
                of Defense under subsection (f).
          (2) Report.--On completing the study, the Secretary 
        of Transportation shall issue a report disclosing the 
        extent of the--
                  (A) adverse impact on the safe and efficient 
                use of the navigable airspace that the 
                Secretary finds will result from constructing 
                or altering the structure; and
                  (B) unacceptable risk to the national 
                security of the United States, as determined by 
                the Secretary of Defense under subsection (f).
          (3) Severability.--A determination by the Secretary 
        of Transportation on hazard to air navigation under 
        this section shall remain independent of a 
        determination of unacceptable risk to the national 
        security of the United States by the Secretary of 
        Defense under subsection (f).
  (c) Broadcast Applications and Tower Studies.--In carrying 
out laws related to a broadcast application and conducting an 
aeronautical study related to broadcast towers, the 
Administrator of the Federal Aviation Administration and the 
Federal Communications Commission shall take action necessary 
to coordinate efficiently--
          (1) the receipt and consideration of, and action on, 
        the application; and
          (2) the completion of any associated aeronautical 
        study.
  (d) Limitation on Construction of Landfills.--
          (1) In general.--No person shall construct or 
        establish a municipal solid waste landfill (as defined 
        in section 258.2 of title 40, Code of Federal 
        Regulations, as in effect on the date of the enactment 
        of this subsection) that receives putrescible waste (as 
        defined in section 257.3-8 of such title) within 6 
        miles of a public airport that has received grants 
        under chapter 471 and is primarily served by general 
        aviation aircraft and regularly scheduled flights of 
        aircraft designed for 60 passengers or less unless the 
        State aviation agency of the State in which the airport 
        is located requests that the Administrator of the 
        Federal Aviation Administration exempt the landfill 
        from the application of this subsection and the 
        Administrator determines that such exemption would have 
        no adverse impact on aviation safety.
          (2) Limitation on applicability.--Paragraph (1) shall 
        not apply in the State of Alaska and shall not apply to 
        the construction, establishment, expansion, or 
        modification of, or to any other activity undertaken 
        with respect to, a municipal solid waste landfill if 
        the construction or establishment of the landfill was 
        commenced on or before the date of the enactment of 
        this subsection.
  (e) Review of Aeronautical Studies.--The Administrator of the 
Federal Aviation Administration shall develop procedures to 
allow the Department of Defense and the Department of Homeland 
Security to review and comment on an aeronautical study 
conducted pursuant to subsection (b) prior to the completion of 
the study.
  (f) National Security Finding.--As part of an aeronautical 
study conducted under subsection (b), the Secretary of Defense 
shall--
          (1) make a finding on whether the construction, 
        alteration, establishment, or expansion of a structure 
        or sanitary landfill included in the study would result 
        in an unacceptable risk to the national security of the 
        United States; and
          (2) transmit the finding to the Secretary of 
        Transportation for inclusion in the report required 
        under subsection (b)(2).
  (g) Definitions.--In this section, the following definitions 
apply:
          (1) Adverse impact on military operations and 
        readiness.--The term ``adverse impact on military 
        operations and readiness'' has the meaning given the 
        term in section 211.3 of title 32, Code of Federal 
        Regulations, as in effect on January 6, 2014.
          (2) Unacceptable risk to the national security of the 
        united states.--The term ``unacceptable risk to the 
        national security of the United States'' has the 
        meaning given the term in section 211.3 of title 32, 
        Code of Federal Regulations, as in effect on January 6, 
        2014.

           *       *       *       *       *       *       *

Sec. 44736. Organization designation authorizations

  (a) Delegations of Functions.--
          (1) In general.--Except as provided in paragraph (3), 
        when overseeing an ODA holder, the Administrator of the 
        FAA shall--
                  (A) require, based on an application 
                submitted by the ODA holder and approved by the 
                Administrator (or the Administrator's 
                designee), a procedures manual that addresses 
                all procedures and limitations regarding the 
                functions to be performed by the ODA holder;
                  (B) delegate fully to the ODA holder each of 
                the functions to be performed as specified in 
                the procedures manual, unless the Administrator 
                determines, after the date of the delegation 
                and as a result of an inspection or other 
                investigation, that the public interest and 
                safety of air commerce requires a limitation 
                with respect to 1 or more of the functions; and
                  (C) conduct regular oversight activities by 
                inspecting the ODA holder's delegated functions 
                and taking action based on validated inspection 
                findings.
          (2) Duties of oda holders.--An ODA holder shall--
                  (A) perform each function delegated to the 
                ODA holder in accordance with the approved 
                procedures manual for the delegation;
                  (B) make the procedures manual available to 
                each member of the appropriate ODA unit; and
                  (C) cooperate fully with oversight activities 
                conducted by the Administrator in connection 
                with the delegation.
          (3) Existing oda holders.--With regard to an ODA 
        holder operating under a procedures manual approved by 
        the Administrator before the date of enactment of this 
        section, the Administrator shall--
                  (A) at the request of the ODA holder and in 
                an expeditious manner, approve revisions to the 
                ODA holder's procedures manual;
                  (B) delegate fully to the ODA holder each of 
                the functions to be performed as specified in 
                the procedures manual, unless the Administrator 
                determines, after the date of the delegation 
                and as a result of an inspection or other 
                investigation, that the public interest and 
                safety of air commerce requires a limitation 
                with respect to one or more of the functions; 
                and
                  (C) conduct regular oversight activities by 
                inspecting the ODA holder delegated functions 
                and taking action based on validated inspection 
                findings.
  (b) ODA Office.--
          (1) Establishment.--Not later than 90 days after the 
        date of enactment of this section, the Administrator of 
        the FAA shall identify, within the FAA Office of 
        Aviation Safety, a centralized policy office to be 
        known as the Organization Designation Authorization 
        Office or the ODA Office.
          (2) Purpose.--The purpose of the ODA Office shall be 
        to oversee and ensure the consistency of the FAA's 
        audit functions under the ODA program across the FAA.
          (3) Functions.--The ODA Office shall--
                  (A) improve performance and ensure full 
                utilization of the authorities delegated under 
                the ODA program;
                  (B) create a more consistent approach to 
                audit priorities, procedures, and training 
                under the ODA program;
                  (C) review, in a timely fashion, a random 
                sample of limitations on delegated authorities 
                under the ODA program to determine if the 
                limitations are appropriate;
                  (D) ensure national consistency in the 
                interpretation and application of the 
                requirements of the ODA program, including any 
                limitations, and in the performance of the ODA 
                program; and
                  (E) at the request of an ODA holder, review 
                and approve new limitations to ODA functions.
  (c) Definitions.--In this section, the following definitions 
apply:
          (1) FAA.--The term ``FAA'' means the Federal Aviation 
        Administration.
          (2) ODA holder.--The term ``ODA holder'' means an 
        entity authorized to perform functions pursuant to a 
        delegation made by the Administrator of the FAA under 
        section 44702(d).
          (3) ODA unit.--The term ``ODA unit'' means a group of 
        2 or more individuals who perform, under the 
        supervision of an ODA holder, authorized functions 
        under an ODA.
          (4) Organization.--The term ``organization'' means a 
        firm, partnership, corporation, company, association, 
        joint-stock association, or governmental entity.
          (5) Organization designation authorization; oda.--The 
        term ``Organization Designation Authorization'' or 
        ``ODA'' means an authorization by the FAA under section 
        44702(d) for an organization comprised of 1 or more ODA 
        units to perform approved functions on behalf of the 
        FAA.

Sec. 44737. Training on human trafficking for certain staff

  In addition to other training requirements, each air carrier 
shall provide training--
          (1) to ticket counter agents, gate agents, and other 
        air carrier workers whose jobs require regular 
        interaction with passengers; and
          (2) on recognizing and responding to potential human 
        trafficking victims.

           *       *       *       *       *       *       *

CHAPTER 453--FEES

           *       *       *       *       *       *       *

Sec. 45302. Fees involving aircraft not providing air transportation

  (a) Application.--This section applies only to aircraft not 
used to provide air transportation.
  (b) General Authority and Maximum Fees.--The Administrator of 
the Federal Aviation Administration may impose fees to pay for 
the costs of issuing airman certificates to pilots and 
certificates of registration of aircraft and processing forms 
for major repairs and alterations of fuel tanks and fuel 
systems of aircraft. The following fees may not be more than 
the amounts specified:
          (1) $12 for issuing an airman's certificate to a 
        pilot.
          (2) $25 for registering an aircraft after the 
        transfer of ownership.
          (3) $15 for renewing an aircraft registration.
          (4) $7.50 for processing a form for a major repair or 
        alteration of a fuel tank or fuel system of an 
        aircraft.
  (c) Adjustments.--The Administrator shall adjust the maximum 
fees established by subsection (b) of this section for changes 
in the Consumer Price Index of All Urban Consumers published by 
the Secretary of Labor.
  (d) Credit to Account and Availability.--Money collected from 
fees imposed under this section shall be credited to the 
account in the Treasury from which the Administrator incurs 
expenses in carrying out chapter 441 and sections 44701-44716 
of this title (except sections 44701(c), [44703(f)(2)] 
44703(g)(2) , and 44713(d)(2)). The money is available to the 
Administrator to pay expenses for which the fees are collected.
  (e) Effective Date.--(1) In general.--A fee may not be 
imposed under this section before the date on which the 
regulations prescribed under sections 44111(d), [44703(f)(2)] 
44703(g)(2) , and 44713(d)(2) of this title take effect.
  (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.

           *       *       *       *       *       *       *

Sec. 45305. Registration, certification, and related fees

  (a) General Authority and Fees.-- [Subject to subsection (b)] 
Subject to subsection (c) , 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) Certification Services.--Subject to subsection (c), and 
notwithstanding section 45301(a), the Administrator may 
establish and collect a fee from a foreign government or entity 
for services related to certification, regardless of where the 
services are provided, if the fee--
          (1) is established and collected in a manner 
        consistent with aviation safety agreements; and
          (2) does not exceed the estimated costs of the 
        services.
  [(b)] (c) 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)] (d) 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.

           *       *       *       *       *       *       *

                 CHAPTER 455--UNMANNED AIRCRAFT SYSTEMS

Sec.
45501. Definitions.
45502. Integration of civil unmanned aircraft systems into national 
          airspace system.
45503. Risk-based permitting of unmanned aircraft systems.
45504. Public unmanned aircraft systems.
45505. Special rules for certain unmanned aircraft systems.
45506. Certification of new air navigation facilities for unmanned 
          aircraft and other aircraft.
45507. Special rules for certain UTM and low-altitude CNS.
45508. Operation of small unmanned aircraft.
45509. Special rules for model aircraft.
45510. Carriage of property for compensation or hire.
45511. Micro UAS operations.

Sec. 45501. Definitions

  In this chapter, the following definitions apply:
          (1) Aerial data collection.--The term ``aerial data 
        collection'' means the gathering of data by a device 
        aboard an unmanned aircraft during flight, including 
        imagery, sensing, and measurement by such device.
          (2) Arctic.--The term ``Arctic'' means the United 
        States zone of the Chukchi Sea, Beaufort Sea, and 
        Bering Sea north of the Aleutian chain.
          (3) 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.
          (4) CNS.--The term ``CNS'' means a communication, 
        navigation, or surveillance system or service.
          (5) Model aircraft.--the term ``model aircraft'' 
        means an unmanned aircraft that is--
                  (A) capable of sustained flight in the 
                atmosphere;
                  (B) flown within visual line of sight of the 
                person operating the aircraft; and
                  (C) flown for hobby or recreational purposes.
          (6) Permanent areas.--The term ``permanent areas'' 
        means areas on land or water that provide for launch, 
        recovery, and operation of small unmanned aircraft.
          (7) 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(a)).
          (8) 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.
          (9) Small unmanned aircraft.--The term ``small 
        unmanned aircraft'' means an unmanned aircraft weighing 
        less than 55 pounds, including everything that is on 
        board the aircraft.
          (10) 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.
          (11) 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.
          (12) UTM.--The term ``UTM'' means an unmanned 
        aircraft traffic management system or service.

Sec. 45502. Integration of civil unmanned aircraft systems into 
                    national airspace system

  (a) Required Planning for Integration.--
          (1) Comprehensive plan.--Not later than November 10, 
        2012, 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 airspace designation 
                for cooperative manned and unmanned flight 
                operations in the national airspace system;
                  (F) 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;
                  (G) 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
                  (H) 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 February 14, 
        2013, the Secretary shall submit to Congress a copy of 
        the plan required under paragraph (1).
          (5) Roadmap.--Not later than February 14, 2013, the 
        Secretary shall approve and make available in print and 
        on the Administration's internet website 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 45508;
          (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) Expanding Use of Unmanned Aircraft Systems in Arctic.--
          (1) In general.--Not later than August 12, 2012, 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. 45503. Risk-based permitting of unmanned aircraft systems

  (a) In General.--Not later than 120 days after the date of 
enactment of this section, the Administrator of the Federal 
Aviation Administration shall establish procedures for issuing 
permits under this section with respect to certain unmanned 
aircraft systems and operations thereof.
  (b) Permitting Standards.--Upon the submission of an 
application in accordance with subsection (d), the 
Administrator shall issue a permit with respect to the proposed 
operation of an unmanned aircraft system if the Administrator 
determines that the unmanned aircraft system and the proposed 
operation achieve a level of safety that is equivalent to--
          (1) other unmanned aircraft systems and operations 
        permitted under regulation, exemption, or other 
        authority granted by the Administrator; or
          (2) any other aircraft operation approved by the 
        Administrator with similar risk characteristics or 
        profiles.
  (c) Safety Criteria for Consideration.--In determining 
whether a proposed operation meets the standards described in 
subsection (b), the Administrator shall consider the following 
safety criteria:
          (1) The kinetic energy of the unmanned aircraft 
        system.
          (2) The location of the proposed operation, including 
        the proximity to--
                  (A) structures;
                  (B) congested areas;
                  (C) special-use airspace; and
                  (D) persons on the ground.
          (3) The nature of the operation, including any 
        proposed risk mitigation.
          (4) Any known hazard of the proposed operation and 
        the severity and likelihood of such hazard.
          (5) Any known failure modes of the unmanned aircraft 
        system, failure mode effects and criticality, and any 
        mitigating features or capabilities.
          (6) The operational history of relevant technologies, 
        if available.
          (7) Any history of civil penalties or certificate 
        actions by the Administrator against the applicant 
        seeking the permit.
          (8) Any other safety criteria the Administrator 
        considers appropriate.
  (d) Application.--An application under this section shall 
include evidence that the unmanned aircraft system and the 
proposed operation thereof meet the standards described in 
subsection (b) based on the criteria described in subsection 
(c).
  (e) Scope of Permit.--A permit issued under this section 
shall--
          (1) be valid for 5 years;
          (2) constitute approval of both the airworthiness of 
        the unmanned aircraft system and the proposed operation 
        of such system;
          (3) be renewable for additional 5-year periods; and
          (4) contain any terms necessary to ensure aviation 
        safety.
  (f) Notice.--Not later than 120 days after the Administrator 
receives a complete application under subsection (d), the 
Administrator shall provide the applicant written notice of a 
decision to approve or disapprove of the application or to 
request a modification of the application that is necessary for 
approval of the application.
  (g) Permitting Process.--The Administrator shall issue a 
permit under this section without regard to subsections (b) 
through (d) of section 553 of title 5 and chapter 35 of title 
44 if the Administrator determines that the operation permitted 
will not occur near a congested area.
  (h) Exemption from Certain Requirements.--To the extent 
consistent with aviation safety, the Administrator may exempt 
applicants under this section from paragraphs (1) through (3) 
of section 44711(a).
  (i) Withdrawal.--The Administrator may, at any time, modify 
or withdraw a permit issued under this section.
  (j) Applicability.--This section shall not apply to small 
unmanned aircraft systems and operations authorized by the 
final rule on small unmanned aircraft systems issued pursuant 
to section 45502(b)(1).
  (k) Expedited Review.--The Administrator shall review and act 
upon applications under this section on an expedited basis for 
unmanned aircraft systems and operations thereof to be used 
primarily in, or primarily in direct support of, emergency 
preparedness, emergency response, or disaster recovery efforts, 
including efforts in connection with natural disasters and 
severe weather events.

Sec. 45504. Public unmanned aircraft systems

  (a) Guidance.--Not later than November 10, 2012, 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 May 14, 2012, 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. 45505. Special rules for certain unmanned aircraft systems

  (a) In General.--Notwithstanding any other requirement of 
this subtitle, and not later than August 12, 2012, 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 45502 or the guidance required under section 45504.
  (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 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. 45506. Certification of new air navigation facilities for unmanned 
                    aircraft and other aircraft

  (a) In General.--Not later than 18 months after the date of 
enactment of this section, and notwithstanding section 2208 of 
the FAA Extension, Safety, and Security Act of 2016 (49 U.S.C. 
40101 note), the Administrator of the Federal Aviation 
Administration shall initiate a rulemaking to establish 
procedures for issuing air navigation facility certificates 
pursuant to section 44702 to operators of--
          (1) UTM for unmanned aircraft operations that occur 
        primarily or exclusively in airspace 400 feet above 
        ground level and below; and
          (2) low-altitude CNS for aircraft operations that 
        occur primarily or exclusively in airspace 400 feet 
        above ground level and below.
  (b) Minimum Requirements.--In issuing a final rule pursuant 
to subsection (a), the Administrator, at a minimum, shall 
provide for the following:
          (1) Certification standards.--The Administrator shall 
        issue an air navigation facility certificate under the 
        final rule if the Administrator determines that a UTM 
        or low-altitude CNS facilitates or improves the safety 
        of unmanned aircraft or other aircraft operations that 
        occur primarily or exclusively in airspace 400 feet 
        above ground level and below, including operations 
        conducted under a waiver issued pursuant to subpart D 
        of part 107 of title 14, Code of Federal Regulations.
          (2) Criteria for consideration.--In determining 
        whether a UTM or low-altitude CNS meets the standard 
        described in paragraph (1), the Administrator shall, as 
        appropriate, consider--
                  (A) protection of persons and property on the 
                ground;
                  (B) remote identification of aircraft;
                  (C) collision avoidance with respect to 
                obstacles and aircraft;
                  (D) deconfliction of aircraft trajectories;
                  (E) safe and reliable interoperability or 
                noninterference with air traffic control and 
                other systems operated in the national airspace 
                system;
                  (F) detection of noncooperative aircraft;
                  (G) geographic and local factors;
                  (H) aircraft equipage; and
                  (I) qualifications, if any, necessary to 
                operate the UTM or low-altitude CNS.
          (3) Application.--An application for an air 
        navigation facility certificate under the final rule 
        shall include evidence that the UTM or low-altitude CNS 
        meets the standard described in paragraph (1) based on 
        the criteria described in paragraph (2).
          (4) Scope of certificate.--The Administrator shall 
        ensure that an air navigation facility certificate 
        issued under the final rule--
                  (A) constitutes approval of the UTM or low-
                altitude CNS for the duration of the term of 
                the certificate;
                  (B) constitutes authorization to operate the 
                UTM or low-altitude CNS for the duration of the 
                term of the certificate; and
                  (C) contains such limitations and conditions 
                as may be necessary to ensure aviation safety.
          (5) Notice.--Not later than 120 days after the 
        Administrator receives a complete application under the 
        final rule, the Administrator shall provide the 
        applicant with a written approval, disapproval, or 
        request to modify the application.
          (6) Low risk areas.--Under the final rule, the 
        Administrator shall establish expedited procedures for 
        approval of UTM or low-altitude CNS operated in--
                  (A) airspace away from congested areas; or
                  (B) other airspace above areas in which 
                operations of unmanned aircraft pose very low 
                risk.
          (7) Exemption from certain requirements.--To the 
        extent consistent with aviation safety, the 
        Administrator may exempt applicants under the final 
        rule from requirements under sections 44702, 44703, and 
        44711.
          (8) Certificate modifications and revocations.--A 
        certificate issued under the final rule may, at any 
        time, be modified or revoked by the Administrator.
  (c) Consultation.--In carrying out this section, the 
Administrator shall consult with other Federal agencies, as 
appropriate.

Sec. 45507. Special rules for certain UTM and low-altitude CNS

  (a) In General.--Notwithstanding any other requirement of 
this chapter, and not later than 120 days after the date of 
enactment of this section, the Secretary of Transportation 
shall determine if certain UTM and low-altitude CNS may operate 
safely in the national airspace system before completion of the 
rulemaking required by section 45506.
  (b) Assessment of UTM and low-Altitude CNS.--In making the 
determination under subsection (a), the Secretary shall 
determine, at a minimum, which types of UTM and low-altitude 
CNS, if any, as a result of their operational capabilities, 
reliability, intended use, and areas of operation, and the 
characteristics of the aircraft involved, do not create a 
hazard to users of the national airspace system or the public.
  (c) Requirements for Safe Operation.--If the Secretary 
determines that certain UTM and low-altitude CNS may operate 
safely in the national airspace system, the Secretary shall 
establish requirements for their safe operation in the national 
airspace system.
  (d) Expedited Procedures.--The Secretary shall provide 
expedited procedures for reviewing and approving UTM or low-
altitude CNS operated to monitor or control aircraft operated 
primarily or exclusively in airspace above--
          (1) croplands;
          (2) areas other than congested areas; and
          (3) other areas in which the operation of unmanned 
        aircraft poses very low risk.
  (e) Consultation.--In carrying out this section, the 
Administrator shall consult with other Federal agencies, as 
appropriate.

Sec. 45508. Operation of small unmanned aircraft

  (a) Exemption and Certificate of Waiver or Authorization for 
Certain Operations.--Not later than 270 days after the date of 
enactment of this section, the Administrator of the Federal 
Aviation Administration shall establish a procedure for 
granting an exemption and issuing a certificate of waiver or 
authorization for the operation of a small unmanned aircraft 
system in United States airspace for the purposes described in 
section 45501(1).
  (b) Operation of Exemption and Certificate of Waiver or 
Authorization.--
          (1) Exemption.--An exemption granted under this 
        section shall--
                  (A) exempt the operator of a small unmanned 
                aircraft from the provisions of title 14, Code 
                of Federal Regulations, that are exempted in 
                Exemption No. 11687, issued on May 26, 2015, 
                Regulatory Docket Number FAA-2015-0117, or in a 
                subsequent exemption; and
                  (B) contain conditions and limitations 
                described in paragraphs 3 through 31 of such 
                Exemption No. 11687, or conditions and 
                limitations of a subsequent exemption.
          (2) Certificate of waiver or authorization.--A 
        certificate of waiver or authorization issued under 
        this section shall allow the operation of small 
        unmanned aircraft according to--
                  (A) the standard provisions and air traffic 
                control special provisions of the certificate 
                of waiver or authorization FAA Form 7711-1 (7-
                74); or
                  (B) the standard and special provisions of a 
                subsequent certificate of waiver or 
                authorization.
  (c) Notice to Administrator.--Before operating a small 
unmanned aircraft pursuant to a certificate of waiver or 
authorization granted under this section, the operator shall 
provide written notice to the Administrator, in a form and 
manner specified by the Administrator, that contains such 
information and assurances as the Administrator determines 
necessary in the interest of aviation safety and the efficiency 
of the national airspace system, including a certification that 
the operator has read, understands, and will comply with all 
terms, conditions, and limitations of the certificate of waiver 
or authorization.
  (d) Waiver of Airworthiness Certificate.--Notwithstanding 
section 44711(a)(1), the holder of a certificate of waiver or 
authorization granted under this section may operate a small 
unmanned aircraft under the terms, conditions, and limitations 
of such certificate without an airworthiness certificate.
  (e) Procedure.--The granting of an exemption or the issuance 
of a certificate of waiver or authorization, or any other 
action authorized by this section, shall be made without regard 
to--
          (1) section 553 of title 5; or
          (2) chapter 35 of title 44.
  (f) Statutory Construction.--Nothing in this section may be 
construed to--
          (1) affect the issuance of a rule by or any other 
        activity of the Secretary of Transportation or the 
        Administrator under any other provision of law; or
          (2) invalidate an exemption or certificate of waiver 
        or authorization issued by the Administrator before the 
        date of enactment of this section.
  (g) Effective Periods.--An exemption or certificate of waiver 
or authorization issued under this section, or an amendment of 
such exemption or certificate, shall cease to be valid on the 
effective date of a final rule on small unmanned aircraft 
systems issued under section 45502(b)(1).

Sec. 45509. Special rules 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 (other than the registration of certain model 
aircraft pursuant to section 44103), 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 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;
          (5) the aircraft is not operated over or within the 
        property of a fixed site facility that operates 
        amusement rides available for use by the general public 
        or the property extending 500 lateral feet beyond the 
        perimeter of such facility unless the operation is 
        authorized by the owner of the amusement facility; and
          (6) 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) Commercial Operation for Instructional or Educational 
Purposes.--A flight of an unmanned aircraft shall be treated as 
a flight of a model aircraft for purposes of subsection (a) 
(regardless of any compensation, reimbursement, or other 
consideration exchanged or incidental economic benefit gained 
in the course of planning, operating, or supervising the 
flight), if the flight is--
          (1) conducted for instructional or educational 
        purposes; and
          (2) operated or supervised by a member of a 
        community-based organization recognized pursuant to 
        subsection (e).
  (c) Statutory Construction.--Nothing in this section may 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.
  (d) Community-Based Organization Defined.--In this section, 
the term ``community-based organization'' means an entity 
that--
          (1) is described in section 501(c)(3) of the Internal 
        Revenue Code of 1986;
          (2) is exempt from tax under section 501(a) of the 
        Internal Revenue Code of 1986;
          (3) the mission of which is demonstrably the 
        furtherance of model aviation;
          (4) provides a comprehensive set of safety guidelines 
        for all aspects of model aviation addressing the 
        assembly and operation of model aircraft and that 
        emphasize safe aeromodeling operations within the 
        national airspace system and the protection and safety 
        of individuals and property on the ground;
          (5) provides programming and support for any local 
        charter organizations, affiliates, or clubs; and
          (6) provides assistance and support in the 
        development and operation of locally designated model 
        aircraft flying sites.
  (e) Recognition of Community-Based Organizations.--Not later 
than 180 days after the date of enactment of this section, the 
Administrator shall establish, and make available to the 
public, a process for recognizing community-based organizations 
that meet the eligibility criteria under subsection (d).

Sec. 45510. Carriage of property for compensation or hire

  (a) In General.--Not later than 1 year after the date of 
enactment of this section, the Secretary of Transportation 
shall issue a final rule authorizing the carriage of property 
by operators of small unmanned aircraft systems for 
compensation or hire within the United States.
  (b) Contents.--The final rule required under subsection (a) 
shall provide for the following:
          (1) Small uas air carrier certificate.--The 
        Administrator of the Federal Aviation Administration, 
        at the direction of the Secretary, shall establish a 
        small UAS air carrier certificate for persons that 
        undertake directly, or by lease or other arrangement, 
        the operation of small unmanned aircraft systems to 
        carry property in air transportation, including 
        commercial fleet operations with highly automated 
        unmanned aircraft systems. The requirements to obtain a 
        small UAS air carrier certificate shall--
                  (A) account for the unique characteristics of 
                highly automated small unmanned aircraft 
                systems; and
                  (B) include only those obligations necessary 
                for the safe operation of small unmanned 
                aircraft systems.
          (2) Small uas air carrier certification process.--The 
        Administrator, at the direction of the Secretary, shall 
        establish a process for the issuance of a small UAS air 
        carrier certificate described in paragraph (1) that is 
        streamlined, simple, performance-based, and risk-based. 
        Such certification process shall consider--
                  (A) safety and the mitigation of operational 
                risks from highly automated small unmanned 
                aircraft systems to the safety of other 
                aircraft, and persons and property on the 
                ground;
                  (B) the safety and reliability of highly 
                automated small unmanned aircraft system 
                design, including technological capabilities 
                and operational limitations to mitigate such 
                risks; and
                  (C) the competencies and compliance programs 
                of manufacturers, operators, and companies that 
                both manufacture and operate small unmanned 
                aircraft systems and components.
          (3) Small uas air carrier classification.--The 
        Secretary shall develop a classification system for 
        small unmanned aircraft systems air carriers to 
        establish economic authority for the carriage of 
        property by small unmanned aircraft systems for 
        compensation or hire. Such classification shall only 
        require--
                  (A) registration with the Department of 
                Transportation; and
                  (B) a valid small UAS air carrier certificate 
                as described in paragraph (1).

Sec. 45511. Micro UAS operations

  (a) In General.--Not later than 60 days after the date of 
enactment of this section, the Administrator of the Federal 
Aviation Administration shall charter an aviation rulemaking 
advisory committee to develop recommendations for regulations 
under which any person may operate a micro unmanned aircraft 
system, the aircraft component of which weighs 4.4 pounds or 
less, including payload, without the person operating the 
system being required to pass any airman certification 
requirement, including any requirements under section 44703, 
part 61 of title 14, Code of Federal Regulations, or any other 
rule or regulation relating to airman certification.
  (b) Considerations.--In developing recommendations for the 
operation of micro unmanned aircraft systems under subsection 
(a), the members of the aviation rulemaking advisory committee 
shall consider rules for operation of such systems--
          (1) at an altitude of less than 400 feet above ground 
        level;
          (2) with an airspeed of not greater than 40 knots;
          (3) within the visual line of sight of the operator;
          (4) during the hours between sunrise and sunset;
          (5) by an operator who has passed an aeronautical 
        knowledge and safety test administered by the Federal 
        Aviation Administration online specifically for the 
        operation of micro unmanned aircraft systems, with such 
        test being of a length and difficulty that acknowledges 
        the reduced operational complexity and low risk of 
        micro unmanned aircraft systems;
          (6) not over unprotected persons uninvolved in its 
        operation; and
          (7) at least 5 statute miles from the geographic 
        center of a tower-controlled airport or airport denoted 
        on a current Federal Aviation Administration-published 
        aeronautical chart, except that a micro unmanned 
        aircraft system may be operated closer than 5 statute 
        miles to the airport if the operator--
                  (A) provides prior notice to the airport 
                operator; and
                  (B) receives, for a tower-controlled airport, 
                prior approval from the air traffic control 
                facility located at the airport.
  (c) Consultation.--
          (1) In general.--In developing recommendations for 
        recommended regulations under subsection (a), the 
        aviation rulemaking advisory committee shall consult 
        with--
                  (A) unmanned aircraft systems stakeholders, 
                including manufacturers of micro unmanned 
                aircraft systems;
                  (B) community-based aviation organizations;
                  (C) the Center of Excellence for Unmanned 
                Aircraft Systems; and
                  (D) appropriate Federal agencies.
          (2) FACA.--The Federal Advisory Committee Act (5 
        U.S.C. App.) shall not apply to an aviation rulemaking 
        advisory committee chartered under this section.
  (d) Rulemaking.--Not later than 180 days after the date of 
receipt of the recommendations under subsection (a), the 
Administrator shall issue regulations incorporating 
recommendations of the aviation rulemaking advisory committee 
that provide for the operation of micro unmanned aircraft 
systems in the United States--
          (1) without an airman certificate; and
          (2) without an airworthiness certificate for the 
        associated unmanned aircraft.
  (e) Scope of Regulations.--
          (1) In general.--In determining whether a person may 
        operate an unmanned aircraft system under 1 or more of 
        the circumstances described under paragraphs (1) 
        through (3) of subsection (b), the Administrator shall 
        use a risk-based approach and consider, at a minimum, 
        the physical and functional characteristics of the 
        unmanned aircraft system.
          (2) Limitation.--The Administrator may only issue 
        regulations under this section for unmanned aircraft 
        systems that the Administrator determines may be 
        operated safely in the national airspace system 
        pursuant to those regulations.
  (f) Rules of Construction.--Nothing in this section may be 
construed--
          (1) to prohibit a person from operating an unmanned 
        aircraft system under a circumstance described under 
        paragraphs (1) through (3) of subsection (b) if--
                  (A) the circumstance is allowed by 
                regulations issued under this section; and
                  (B) the person operates the unmanned aircraft 
                system in a manner prescribed by the 
                regulations; or
          (2) to limit or affect in any way the Administrator's 
        authority to conduct a rulemaking, make a 
        determination, or carry out any activity related to 
        unmanned aircraft or unmanned aircraft systems under 
        any other provision of law.

           *       *       *       *       *       *       *

SUBPART IV--ENFORCEMENT AND PENALTIES

           *       *       *       *       *       *       *

CHAPTER 461--INVESTIGATIONS AND PROCEEDINGS

           *       *       *       *       *       *       *

Sec. 46110. Judicial review

  (a) Filing and Venue.--Except for an order related to a 
foreign air carrier subject to disapproval by the President 
under section 41307 or 41509(f) of this title, a person 
disclosing a substantial interest in an order issued by the 
Secretary of Transportation (or the Under Secretary of 
Transportation for Security with respect to security duties and 
powers designated to be carried out by the Under Secretary or 
the Administrator of the Federal Aviation Administration with 
respect to aviation duties and powers designated to be carried 
out by the Administrator) in whole or in part under this part, 
part B, [or subsection (l) or (s) of section 114] subsection 
(l) or (s) of section 114, or section 90501 may apply for 
review of the order by filing a petition for review in the 
United States Court of Appeals for the District of Columbia 
Circuit or in the court of appeals of the United States for the 
circuit in which the person resides or has its principal place 
of business. The petition must be filed not later than 60 days 
after the order is issued. The court may allow the petition to 
be filed after the 60th day only if there are reasonable 
grounds for not filing by the 60th day.
  (b) Judicial Procedures.--When a petition is filed under 
subsection (a) of this section, the clerk of the court 
immediately shall send a copy of the petition to the Secretary, 
Under Secretary, or Administrator, as appropriate. The 
Secretary, Under Secretary, or Administrator shall file with 
the court a record of any proceeding in which the order was 
issued, as provided in section 2112 of title 28.
  (c) Authority of Court.--When the petition is sent to the 
Secretary, Under Secretary, or Administrator, the court has 
exclusive jurisdiction to affirm, amend, modify, or set aside 
any part of the order and may order the Secretary, Under 
Secretary, or Administrator to conduct further proceedings. 
After reasonable notice to the Secretary, Under Secretary, or 
Administrator, the court may grant interim relief by staying 
the order or taking other appropriate action when good cause 
for its action exists. Findings of fact by the Secretary, Under 
Secretary, or Administrator, if supported by substantial 
evidence, are conclusive.
  (d) Requirement for Prior Objection.--In reviewing an order 
under this section, the court may consider an objection to an 
order of the Secretary, Under Secretary, or Administrator only 
if the objection was made in the proceeding conducted by the 
Secretary, Under Secretary, or Administrator or if there was a 
reasonable ground for not making the objection in the 
proceeding.
  (e) Supreme Court Review.--A decision by a court under this 
section may be reviewed only by the Supreme Court under section 
1254 of title 28.

           *       *       *       *       *       *       *

                         CHAPTER 463--PENALTIES

Sec. 46301. Civil penalties

  (a) General Penalty.--(1) A person is liable to the United 
States Government for a civil penalty of not more than $25,000 
(or $1,100 if the person is an individual or small business 
concern) for violating--
          (A) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 411, chapter 413 
        (except sections 41307 and 41310(b)-(f)), chapter 415 
        (except sections 41502, 41505, and 41507-41509), 
        chapter 417 (except sections 41703, 41704, 41710, 
        41713, and 41714), chapter 419, subchapter II or III of 
        chapter 421, chapter 423, chapter 441 (except section 
        44109), section 44502(b) or (c), chapter 447 (except 
        sections 44717 and 44719-44723), chapter 449 (except 
        sections 44902, 44903(d), 44904, 44907(a)-(d)(1)(A) and 
        (d)(1)(C)-(f), and 44908), chapter 451, chapter 455, 
        section 47107(b) (including any assurance made under 
        such section), [or section 47133] section 47133, or 
        section 90501(b)(3) of this title;
          (B) a regulation prescribed or order issued under any 
        provision to which clause (A) of this paragraph 
        applies;
          (C) any term of a certificate or permit issued under 
        section 41102, 41103, or 41302 of this title; or
          (D) a regulation of the United States Postal Service 
        under this part.
  (2) A separate violation occurs under this subsection for 
each day the violation (other than a violation of section 
41719) continues or, if applicable, for each flight involving 
the violation (other than a violation of section 41719).
  (3) Penalty for diversion of aviation revenues.--The amount 
of a civil penalty assessed under this section for a violation 
of section 47107(b) of this title (or any assurance made under 
such section) or section 47133 of this title may be increased 
above the otherwise applicable maximum amount under this 
section to an amount not to exceed 3 times the amount of 
revenues that are used in violation of such section.
  (4) Aviation security violations- Notwithstanding paragraph 
(1) of this subsection, the maximum civil penalty for violating 
chapter 449 shall be $10,000; except that the maximum civil 
penalty shall be $25,000 in the case of a person operating an 
aircraft for the transportation of passengers or property for 
compensation (except an individual serving as an airman).
  (5) Penalties applicable to individuals and small business 
concerns.--
          (A) An individual (except an airman serving as an 
        airman) or small business concern is liable to the 
        Government for a civil penalty of not more than $10,000 
        for violating--
                  (i) chapter 401 (except sections 40103(a) and 
                (d), 40105, 40106(b), 40116, and 40117), 
                section 44502 (b) or (c), chapter 447 (except 
                sections 44717-44723), chapter 449 (except 
                sections 44902, 44903(d), 44904, and 44907-
                44909), [or chapter 451,] chapter 451, chapter 
                455, or section 46314(a) of this title; or
                  (ii) a regulation prescribed or order issued 
                under any provision to which clause (i) 
                applies.
          (B) A civil penalty of not more than $10,000 may be 
        imposed for each violation under paragraph (1) 
        committed by an individual or small business concern 
        related to--
                  (i) the transportation of hazardous material;
                  (ii) the registration or recordation under 
                chapter 441 of an aircraft not used to provide 
                air transportation;
                  (iii) a violation of section 44718(d), 
                relating to the limitation on construction or 
                establishment of landfills;
                  (iv) a violation of section 44725, relating 
                to the safe disposal of life-limited aircraft 
                parts; or
                  (v) a violation of section 40127 or section 
                41705, relating to discrimination.
          (C) Notwithstanding paragraph (1), the maximum civil 
        penalty for a violation of section 41719 committed by 
        an individual or small business concern shall be $5,000 
        instead of $1,000.
          (D) Notwithstanding paragraph (1), the maximum civil 
        penalty for a violation of section 41712 (including a 
        regulation prescribed or order issued under such 
        section) or any other regulation prescribed by the 
        Secretary by an individual or small business concern 
        that is intended to afford consumer protection to 
        commercial air transportation passengers shall be 
        $2,500 for each violation.
  (6) Failure To Collect Airport Security Badges.--
Notwithstanding paragraph (1), any employer (other than a 
governmental entity or airport operator) who employs an 
employee to whom an airport security badge or other identifier 
used to obtain access to a secure area of an airport is issued 
before, on, or after the date of enactment of this paragraph 
and who does not collect or make reasonable efforts to collect 
such badge from the employee on the date that the employment of 
the employee is terminated and does not notify the operator of 
the airport of such termination within 24 hours of the date of 
such termination shall be liable to the Government for a civil 
penalty not to exceed $10,000.
  (b) Smoke Alarm Device Penalty.--(1) A passenger may not 
tamper with, disable, or destroy a smoke alarm device located 
in a lavatory on an aircraft providing air transportation or 
intrastate air transportation.
  (2) An individual violating this subsection is liable to the 
Government for a civil penalty of not more than $2,000.
  (c) Procedural Requirements.--(1) The Secretary of 
Transportation may impose a civil penalty for the following 
violations only after notice and an opportunity for a hearing:
          (A) a violation of subsection (b) of this section or 
        chapter 411, chapter 413 (except sections 41307 and 
        41310(b)-(f)), chapter 415 (except sections 41502, 
        41505, and 41507-41509), chapter 417 (except sections 
        41703, 41704, 41710, 41713, and 41714), chapter 419, 
        subchapter II of chapter 421, chapter 423, or section 
        44909 of this title.
          (B) a violation of a regulation prescribed or order 
        issued under any provision to which clause (A) of this 
        paragraph applies.
          (C) a violation of any term of a certificate or 
        permit issued under section 41102, 41103, or 41302 of 
        this title.
          (D) a violation under subsection (a)(1) of this 
        section related to the transportation of hazardous 
        material.
  (2) The Secretary shall give written notice of the finding of 
a violation and the civil penalty under paragraph (1) of this 
subsection.
  (d) Administrative Imposition of Penalties.--(1) In this 
subsection--
          (A) ``flight engineer'' means an individual who holds 
        a flight engineer certificate issued under part 63 of 
        title 14, Code of Federal Regulations.
          (B) ``mechanic'' means an individual who holds a 
        mechanic certificate issued under part 65 of title 14, 
        Code of Federal Regulations.
          (C) ``pilot'' means an individual who holds a pilot 
        certificate issued under part 61 of title 14, Code of 
        Federal Regulations.
          (D) ``repairman'' means an individual who holds a 
        repairman certificate issued under part 65 of title 14, 
        Code of Federal Regulations.
  (2) The Administrator of the Federal Aviation Administration 
may impose a civil penalty for a violation of chapter 401 
(except sections 40103(a) and (d), 40105, 40106(b), 40116, and 
40117), chapter 441 (except section 44109), section 44502(b) or 
(c), chapter 447 (except sections 44717 and 44719-44723), 
chapter 451, chapter 455, section 46301(b), section 46302 (for 
a violation relating to section 46504), section 46318, section 
46319, section 46320, or section 47107(b) (as further defined 
by the Secretary under section 47107(k) and including any 
assurance made under section 47107(b)) of this title or a 
regulation prescribed or order issued under any of those 
provisions. The Secretary of Homeland Security may impose a 
civil penalty for a violation of chapter 449 (except sections 
44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, 
and 44909), section 46302 (except for a violation relating to 
section 46504), or section 46303 of this title or a regulation 
prescribed or order issued under any of those provisions. The 
Secretary of Homeland Security or Administrator shall give 
written notice of the finding of a violation and the penalty.
  (3) In a civil action to collect a civil penalty imposed by 
the Secretary of Homeland Security or Administrator under this 
subsection, the issues of liability and the amount of the 
penalty may not be reexamined.
  (4) Notwithstanding paragraph (2) of this subsection, the 
district courts of the United States have exclusive 
jurisdiction of a civil action involving a penalty the 
Secretary of Homeland Security or Administrator initiates if--
          (A) the amount in controversy is more than--
                  (i) $50,000 if the violation was committed by 
                any person before the date of enactment of the 
                Vision 100-- Century of Aviation 
                Reauthorization Act;
                  (ii) $400,000 if the violation was committed 
                by a person other than an individual or small 
                business concern on or after that date; or
                  (iii) $50,000 if the violation was committed 
                by an individual or small business concern on 
                or after that date;
          (B) the action is in rem or another action in rem 
        based on the same violation has been brought;
          (C) the action involves an aircraft subject to a lien 
        that has been seized by the Government; or
          (D) another action has been brought for an injunction 
        based on the same violation.
  (5)(A) The Administrator may issue an order imposing a 
penalty under this subsection against an individual acting as a 
pilot, flight engineer, mechanic, or repairman only after 
advising the individual of the charges or any reason the 
Administrator relied on for the proposed penalty and providing 
the individual an opportunity to answer the charges and be 
heard about why the order shall not be issued.
  (B) An individual acting as a pilot, flight engineer, 
mechanic, or repairman may appeal an order imposing a penalty 
under this subsection to the National Transportation Safety 
Board. After notice and an opportunity for a hearing on the 
record, the Board shall affirm, modify, or reverse the order. 
The Board may modify a civil penalty imposed to a suspension or 
revocation of a certificate.
  (C) When conducting a hearing under this paragraph, the Board 
is not bound by findings of fact of the Administrator but is 
bound by all validly adopted interpretations of laws and 
regulations the Administrator carries out and of written agency 
policy guidance available to the public related to sanctions to 
be imposed under this section unless the Board finds an 
interpretation is arbitrary, capricious, or otherwise not 
according to law.
  (D) When an individual files an appeal with the Board under 
this paragraph, the order of the Administrator is stayed.
  (6) An individual substantially affected by an order of the 
Board under paragraph (5) of this subsection, or the 
Administrator when the Administrator decides that an order of 
the Board under paragraph (5) will have a significant adverse 
impact on carrying out this part, may obtain judicial review of 
the order under section 46110 of this title. The Administrator 
shall be made a party to the judicial review proceedings. 
Findings of fact of the Board are conclusive if supported by 
substantial evidence.
  (7)(A) The Administrator may impose a penalty on a person 
(except an individual acting as a pilot, flight engineer, 
mechanic, or repairman) only after notice and an opportunity 
for a hearing on the record.
  (B) In an appeal from a decision of an administrative law 
judge as the result of a hearing under subparagraph (A) of this 
paragraph, the Administrator shall consider only whether--
          (i) each finding of fact is supported by a 
        preponderance of reliable, probative, and substantial 
        evidence;
          (ii) each conclusion of law is made according to 
        applicable law, precedent, and public policy; and
          (iii) the judge committed a prejudicial error that 
        supports the appeal.
  (C) Except for good cause, a civil action involving a penalty 
under this paragraph may not be initiated later than 2 years 
after the violation occurs.
  (D) In the case of a violation of section 47107(b) of this 
title or any assurance made under such section--
          (i) a civil penalty shall not be assessed against an 
        individual;
          (ii) a civil penalty may be compromised as provided 
        under subsection (f); and
          (iii) judicial review of any order assessing a civil 
        penalty may be obtained only pursuant to section 46110 
        of this title.
  (8) The maximum civil penalty the Under Secretary, 
Administrator, or Board may impose under this subsection is--
          (A) $50,000 if the violation was committed by any 
        person before the date of enactment of the Vision 100--
        Century of Aviation Reauthorization Act;
          (B) $400,000 if the violation was committed by a 
        person other than an individual or small business 
        concern on or after that date; or
          (C) $50,000 if the violation was committed by an 
        individual or small business concern on or after that 
        date.
  (9) This subsection applies only to a violation occurring 
after August 25, 1992.
  (e) Penalty Considerations.--In determining the amount of a 
civil penalty under subsection (a)(3) of this section related 
to transportation of hazardous material, the Secretary shall 
consider--
          (1) the nature, circumstances, extent, and gravity of 
        the violation;
          (2) with respect to the violator, the degree of 
        culpability, any history of prior violations, the 
        ability to pay, and any effect on the ability to 
        continue doing business; and
          (3) other matters that justice requires.
  (f) Compromise and Setoff.--(1)(A) The Secretary may 
compromise the amount of a civil penalty imposed for 
violating--
          (i) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 441 (except section 
        44109), section 44502(b) or (c), chapter 447 (except 
        sections 44717 and 44719-44723), chapter 449 (except 
        sections 44902, 44903(d), 44904, 44907(a)-(d)(1)(A) and 
        (d)(1)(C)-(f), 44908, and 44909), [or chapter 451] 
        chapter 451, or chapter 455 of this title; or
          (ii) a regulation prescribed or order issued under 
        any provision to which clause (i) of this subparagraph 
        applies.
  (B) The Postal Service may compromise the amount of a civil 
penalty imposed under subsection (a)(1)(D) of this section.
  (2) The Government may deduct the amount of a civil penalty 
imposed or compromised under this subsection from amounts it 
owes the person liable for the penalty.
  (g) Judicial Review.--An order of the Secretary or the 
Administrator imposing a civil penalty may be reviewed 
judicially only under section 46110 of this title.
  (h) Nonapplication.--(1) This section does not apply to the 
following when performing official duties:
          (A) a member of the armed forces of the United 
        States.
          (B) a civilian employee of the Department of Defense 
        subject to the Uniform Code of Military Justice.
  (2) The appropriate military authority is responsible for 
taking necessary disciplinary action and submitting to the 
Secretary (or the Under Secretary of Transportation for 
Security with respect to security duties and powers designated 
to be carried out by the Under Secretary or the Administrator 
with respect to aviation safety duties and powers designated to 
be carried out by the Administrator) a timely report on action 
taken.
  (i) Small Business Concern Defined.--In this section, the 
term ``small business concern'' has the meaning given that term 
in section 3 of the Small Business Act (15 U.S.C. 632).

           *       *       *       *       *       *       *

    CHAPTER 465--SPECIAL AIRCRAFT JURISDICTION OF THE UNITED STATES

Sec.
46501. Definitions.
     * * * * * * *
[46503. Repealed.]
     * * * * * * *

           *       *       *       *       *       *       *

PART B--AIRPORT DEVELOPMENT AND NOISE

           *       *       *       *       *       *       *

                    CHAPTER 471--AIRPORT DEVELOPMENT

                    SUBCHAPTER I--AIRPORT IMPROVEMENT

Sec.
47101. Policies.
     * * * * * * *
[47136. Inherently low-emission airport vehicle pilot program.
[47136a. Zero-emission airport vehicles and infrastructure.]
47136. Zero-emission airport vehicles and infrastructure.
     * * * * * * *
[47140. Airport ground support equipment emissions retrofit pilot 
          program.
[47140a. Increasing the energy efficiency of airport power sources.]
47140. Increasing the energy efficiency of airport power sources.
     * * * * * * *

            SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

     * * * * * * *

SUBCHAPTER I--AIRPORT IMPROVEMENT

           *       *       *       *       *       *       *

Sec. 47102. Definitions

   In this subchapter--
          (1) ``air carrier airport'' means a public airport 
        regularly served by--
                  (A) an air carrier certificated by the 
                Secretary of Transportation under section 41102 
                of this title (except a charter air carrier); 
                or
                  (B) at least one air carrier--
                          (i) operating under an exemption from 
                        section 41101(a)(1) of this title that 
                        the Secretary grants; and
                          (ii) having at least 2,500 passenger 
                        boardings at the airport during the 
                        prior calendar year.
          (2) ``airport''--
                  (A) means--
                          (i) an area of land or water used or 
                        intended to be used for the landing and 
                        taking off of aircraft;
                          (ii) an appurtenant area used or 
                        intended to be used for airport 
                        buildings or other airport facilities 
                        or rights of way; and
                          (iii) airport buildings and 
                        facilities located in any of those 
                        areas; and
                  (B) includes a heliport.
          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A) constructing, repairing, or improving a 
                public-use airport, including--
                          (i) removing, lowering, relocating, 
                        marking, and lighting an airport 
                        hazard; and
                          (ii) preparing a plan or 
                        specification, including carrying out a 
                        field investigation.
                  (B) acquiring for, or installing at, a 
                public-use airport--
                          (i) a navigation aid or another aid 
                        (including a precision approach system) 
                        used by aircraft for landing at or 
                        taking off from the airport, including 
                        preparing the site as required by the 
                        acquisition or installation;
                          (ii) safety or security equipment, 
                        including explosive detection devices, 
                        universal access systems, and emergency 
                        call boxes, the Secretary requires by 
                        regulation for, or approves as 
                        contributing significantly to, the 
                        safety or security of individuals and 
                        property at the airport and integrated 
                        in-pavement lighting systems for 
                        runways and taxiways and other runway 
                        and taxiway incursion prevention 
                        devices;
                          (iii) equipment to remove snow, to 
                        measure runway surface friction, or for 
                        aviation-related weather reporting, 
                        including closed circuit weather 
                        surveillance equipment if the airport 
                        is located in Alaska;
                          (iv) firefighting and rescue 
                        equipment at an airport that serves 
                        scheduled passenger operations of air 
                        carrier aircraft designed for more than 
                        9 passenger seats;
                          (v) aircraft deicing equipment and 
                        structures (except aircraft deicing 
                        fluids and storage facilities for the 
                        equipment and fluids);
                          (vi) interactive training systems;
                          (vii) windshear detection equipment 
                        that is certified by the Administrator 
                        of the Federal Aviation Administration;
                          (viii) stainless steel adjustable 
                        lighting extensions approved by the 
                        Administrator;
                          (ix) engineered materials arresting 
                        systems as described in the Advisory 
                        Circular No. 150/5220-22 published by 
                        the Federal Aviation Administration on 
                        August 21, 1998, including any revision 
                        to the circular; and
                          (x) replacement of baggage conveyor 
                        systems, and reconfiguration of 
                        terminal baggage areas, that the 
                        Secretary determines are necessary to 
                        install bulk explosive detection 
                        devices; except that such activities 
                        shall be eligible for funding under 
                        this subchapter only using amounts 
                        apportioned under section 47114.
                  (C) acquiring an interest in land or 
                airspace, including land for future airport 
                development, that is needed--
                          (i) to carry out airport development 
                        described in subclause (A) or (B) of 
                        this clause; or
                          (ii) to remove or mitigate an 
                        existing airport hazard or prevent or 
                        limit the creation of a new airport 
                        hazard.
                  (D) acquiring land for, or constructing, a 
                burn area training structure on or off the 
                airport to provide live fire drill training for 
                aircraft rescue and firefighting personnel 
                required to receive the training under 
                regulations the Secretary prescribes, including 
                basic equipment and minimum structures to 
                support the training under standards the 
                Administrator of the Federal Aviation 
                Administration prescribes.
                  (E) relocating after December 31, 1991, an 
                air traffic control tower and any navigational 
                aid (including radar) if the relocation is 
                necessary to carry out a project approved by 
                the Secretary under this subchapter or under 
                section 40117.
                  (F) constructing, reconstructing, repairing, 
                or improving an airport, or purchasing capital 
                equipment for an airport, if necessary for 
                compliance with the responsibilities of the 
                operator or owner of the airport under the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.), the Clean Air Act (42 
                U.S.C. 7401 et seq.), and the Federal Water 
                Pollution Control Act (33 U.S.C. 1251 et seq.), 
                except constructing or purchasing capital 
                equipment that would benefit primarily a 
                revenue-producing area of the airport used by a 
                nonaeronautical business.
                  (G) acquiring land for, or work necessary to 
                construct, a pad suitable for deicing aircraft 
                before takeoff at a commercial service airport, 
                including constructing or reconstructing paved 
                areas, drainage collection structures, 
                treatment and discharge systems, appropriate 
                lighting, paved access for deicing vehicles and 
                aircraft, and including acquiring glycol 
                recovery vehicles, but not including acquiring 
                aircraft deicing fluids or constructing or 
                reconstructing storage facilities for aircraft 
                deicing equipment or fluids.
                  (H) routine work to preserve and extend the 
                useful life of runways, taxiways, and aprons at 
                nonhub airports and airports that are not 
                primary airports, under guidelines issued by 
                the Administrator of the Federal Aviation 
                Administration.
                  (I) constructing, reconstructing, or 
                improving an airport, or purchasing nonrevenue 
                generating capital equipment to be owned by an 
                airport, for the purpose of transferring 
                passengers, cargo, or baggage between the 
                aeronautical and ground transportation modes on 
                airport property.
                  (J) constructing an air traffic control tower 
                or acquiring and installing air traffic 
                control, communications, and related equipment 
                at an air traffic control tower under the terms 
                specified in section 47124(b)(4).
                  (K) work necessary to construct or modify 
                airport facilities to provide low-emission fuel 
                systems, gate electrification, and other 
                related air quality improvements at a 
                commercial service airport if the airport is 
                located in an air quality nonattainment or 
                maintenance area (as defined in sections 171(2) 
                and 175A of the Clean Air Act (42 U.S.C. 
                7501(2); 7505a) and if such project will result 
                in an airport receiving appropriate emission 
                credits, as described in section 47139.
                  (L) a project for the acquisition or 
                conversion of vehicles and ground support 
                equipment, owned by a commercial service 
                airport, to low-emission technology, if the 
                airport is located in an air quality 
                nonattainment or maintenance area (as defined 
                in sections 171(2) and 175A of the Clean Air 
                Act (42 U.S.C. 7501(2); 7505a) and if such 
                project will result in an airport receiving 
                appropriate emission credits as described in 
                section 47139.
                  (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.
                  (P) converting or retrofitting vehicles and 
                ground support equipment into eligible zero-
                emission vehicles and equipment or acquiring, 
                by purchase or lease, eligible zero-emission 
                vehicles and equipment.
                  (Q) constructing or modifying airport 
                facilities to install a microgrid in order to 
                provide increased resilience to severe weather, 
                terrorism, and other causes of grid failures.
          (4) ``airport hazard'' means a structure or object of 
        natural growth located on or near a public-use airport, 
        or a use of land near the airport, that obstructs or 
        otherwise is hazardous to the landing or taking off of 
        aircraft at or from the airport.
          (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.
          (6) ``amount made available under section 48103'' or 
        ``amount newly made available'' means the amount 
        authorized for grants under section 48103 as that 
        amount may be limited in that year by a subsequent law, 
        but as determined without regard to grant obligation 
        recoveries made in that year or amounts covered by 
        section 47107(f).
          (7) ``commercial service airport'' means a public 
        airport in a State that the Secretary determines has at 
        least 2,500 passenger boardings each year and is 
        receiving scheduled passenger aircraft service.
          (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.
          (9) ``integrated airport system planning'' means 
        developing for planning purposes information and 
        guidance to decide the extent, kind, location, and 
        timing of airport development needed in a specific area 
        to establish a viable, balanced, and integrated system 
        of public-use airports, including--
                  (A) identifying system needs;
                  (B) developing an estimate of systemwide 
                development costs;
                  (C) conducting studies, surveys, and other 
                planning actions, including those related to 
                airport access, needed to decide which 
                aeronautical needs should be met by a system of 
                airports; and
                  (D) standards prescribed by a State, except 
                standards for safety of approaches, for airport 
                development at nonprimary public-use airports.
          (10) ``landed weight'' means the weight of aircraft 
        transporting only cargo in intrastate, interstate, and 
        foreign air transportation, as the Secretary determines 
        under regulations the Secretary prescribes.
          (11) ``large hub airport'' means a commercial service 
        airport that has at least 1.0 percent of the passenger 
        boardings.
          (12) ``low-emission technology'' means technology for 
        vehicles and equipment whose emission performance is 
        the best achievable under emission standards 
        established by the Environmental Protection Agency and 
        that relies exclusively on alternative fuels that are 
        substantially nonpetroleum based, as defined by the 
        Department of Energy, but not excluding hybrid systems 
        or natural gas powered vehicles.
          (13) ``medium hub airport'' means a commercial 
        service airport that has at least 0.25 percent but less 
        than 1.0 percent of the passenger boardings.
          (14) ``nonhub airport'' means a commercial service 
        airport that has less than 0.05 percent of the 
        passenger boardings.
          (15) ``passenger boardings''--
                  (A) means, unless the context indicates 
                otherwise, revenue passenger boardings in the 
                United States in the prior calendar year on an 
                aircraft in service in air commerce, as the 
                Secretary determines under regulations the 
                Secretary prescribes; and
                  (B) includes passengers who continue on an 
                aircraft in international flight that stops at 
                an airport in the 48 contiguous States, Alaska, 
                or Hawaii for a nontraffic purpose.
          (16) ``primary airport'' means a commercial service 
        airport the Secretary determines to have more than 
        10,000 passenger boardings each year.
          (17) ``project'' means a project, separate projects 
        included in one project grant application, or all 
        projects to be undertaken at an airport in a fiscal 
        year, to achieve airport development or airport 
        planning.
          (18) ``project cost'' means a cost involved in 
        carrying out a project.
          (19) ``project grant'' means a grant of money the 
        Secretary makes to a sponsor to carry out at least one 
        project.
          (20) ``public agency'' means--
                  (A) a State or political subdivision of a 
                State;
                  (B) a tax-supported organization; or
                  (C) an Indian tribe or pueblo.
          (21) ``public airport'' means an airport used or 
        intended to be used for public purposes--
                  (A) that is under the control of a public 
                agency; and
                  (B) of which the area used or intended to be 
                used for the landing, taking off, or surface 
                maneuvering of aircraft is publicly owned.
          (22) ``public-use airport'' means--
                  (A) a public airport; or
                  (B) a privately-owned airport used or 
                intended to be used for public purposes that 
                is--
                          (i) a reliever airport; or
                          (ii) determined by the Secretary to 
                        have at least 2,500 passenger boardings 
                        each year and to receive scheduled 
                        passenger aircraft service.
          (23) ``reliever airport'' means an airport the 
        Secretary designates to relieve congestion at a 
        commercial service airport and to provide more general 
        aviation access to the overall community.
          (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.
          (25) ``small hub airport'' means a commercial service 
        airport that has at least 0.05 percent but less than 
        0.25 percent of the passenger boardings.
          (26) ``sponsor'' means--
                  (A) a public agency that submits to the 
                Secretary under this subchapter an application 
                for financial assistance; and
                  (B) a private owner of a public-use airport 
                that submits to the Secretary under this 
                subchapter an application for financial 
                assistance for the airport.
          (27) ``State'' means a State of the United States, 
        the District of Columbia, Puerto Rico, the Virgin 
        Islands, American Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and Guam.
          (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).
          (29) ``lactation area'' means a room or other 
        location in a commercial service airport that--
                  (A) provides a location for members of the 
                public to express breast milk that is shielded 
                from view and free from intrusion from the 
                public;
                  (B) has a door that can be locked;
                  (C) includes a place to sit, a table or other 
                flat surface, and an electrical outlet;
                  (D) is readily accessible to and usable by 
                individuals with disabilities, including 
                individuals who use wheelchairs; and
                  (E) is not located in a restroom.
          (30) ``eligible zero-emission vehicle and equipment'' 
        means a zero-emission vehicle, equipment related to 
        such a vehicle, and ground support equipment that 
        includes zero-emission technology that is--
                  (A) used exclusively at a commercial service 
                airport; or
                  (B) used exclusively to transport people or 
                materials to and from a commercial service 
                airport.
          (31) ``microgrid'' means a localized grouping of 
        electricity sources and loads that normally operates 
        connected to and synchronous with the traditional 
        centralized electrical grid, but can disconnect and 
        function autonomously as physical or economic 
        conditions dictate.
          (32) ``zero-emission vehicle'' means a zero-emission 
        vehicle as defined in section 88.102-94 of title 40, 
        Code of Federal Regulations, or a vehicle that produces 
        zero exhaust emissions of any criteria pollutant (or 
        precursor pollutant) under any possible operational 
        modes and conditions.

           *       *       *       *       *       *       *

Sec. 47104. Project grant authority

  (a) General Authority.--To maintain a safe and efficient 
nationwide system of public-use airports that meets the present 
and future needs of civil aeronautics, the Secretary of 
Transportation may make project grants under this subchapter 
from the Airport and Airway Trust Fund.
  (b) Incurring Obligations.--The Secretary may incur 
obligations to make grants from amounts made available under 
section 48103 of this title as soon as the amounts are 
apportioned under section 47114(c) and (d)(2) of this title.
  (c) Expiration of Authority.--After [September 30, 2017,] 
September 30, 2023, the Secretary may not incur obligations 
under subsection (b) of this section, except for obligations of 
amounts--
          (1) remaining available after that date under section 
        47117(b) of this title; or
          (2) recovered by the United States Government from 
        grants made under this chapter if the amounts are 
        obligated only for increases under section 47108(b)(2) 
        and (3) of this title in the maximum amount of 
        obligations of the Government for any other grant made 
        under this title.

           *       *       *       *       *       *       *

Sec. 47106. Project grant application approval conditioned on 
                    satisfaction of project requirements

  (a) Project Grant Application Approval.--The Secretary of 
Transportation may approve an application under this subchapter 
for a project grant only if the Secretary is satisfied that--
          (1) the project is consistent with plans (existing at 
        the time the project is approved) of public agencies 
        authorized by the State in which the airport is located 
        to plan for the development of the area surrounding the 
        airport;
          (2) the project will contribute to carrying out this 
        subchapter;
          (3) enough money is available to pay the project 
        costs that will not be paid by the United States 
        Government under this subchapter;
          (4) the project will be completed without 
        unreasonable delay;
          (5) the sponsor has authority to carry out the 
        project as proposed; and
          (6) if the project is for an airport that has an 
        airport master plan that includes the project , 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.
  (b) Airport Development Project Grant Application Approval.--
The Secretary may approve an application under this subchapter 
for an airport development project grant for an airport only if 
the Secretary is satisfied that--
          (1) the sponsor, a public agency, or the Government 
        holds good title to the areas of the airport used or 
        intended to be used for the landing, taking off, or 
        surface maneuvering of aircraft, or that good title 
        will be acquired;
          (2) the interests of the community in or near which 
        the project may be located have been given fair 
        consideration; and
          (3) the application provides touchdown zone and 
        centerline runway lighting, high intensity runway 
        lighting, or land necessary for installing approach 
        light systems that the Secretary, considering the 
        category of the airport and the kind and volume of 
        traffic using it, decides is necessary for safe and 
        efficient use of the airport by aircraft.
  (c) Environmental Requirements.--(1) The Secretary may 
approve an application under this subchapter for an airport 
development project involving the location of an airport or 
runway or a major runway extension--
          (A) only if the sponsor certifies to the Secretary 
        that--
                  (i) an opportunity for a public hearing was 
                given to consider the economic, social, and 
                environmental effects of the location and the 
                location's consistency with the objectives of 
                any planning that the community has carried 
                out;
                  (ii) the airport management board has voting 
                representation from the communities in which 
                the project is located or has advised the 
                communities that they have the right to 
                petition the Secretary about a proposed 
                project; and
                  (iii) with respect to an airport development 
                project involving the location of an airport, 
                runway, or major runway extension at a medium 
                or large hub airport, the airport sponsor has 
                made available to and has provided upon request 
                to the metropolitan planning organization in 
                the area in which the airport is located, if 
                any, a copy of the proposed amendment to the 
                airport layout plan to depict the project and a 
                copy of any airport master plan in which the 
                project is described or depicted; and
          (B) if the application is found to have a significant 
        adverse effect on natural resources, including fish and 
        wildlife, natural, scenic, and recreation assets, water 
        and air quality, or another factor affecting the 
        environment, only after finding that no possible and 
        prudent alternative to the project exists and that 
        every reasonable step has been taken to minimize the 
        adverse effect.
  (2) The Secretary may approve an application under this 
subchapter for an airport development project that does not 
involve the location of an airport or runway, or a major runway 
extension, at an existing airport without requiring an 
environmental impact statement related to noise for the project 
if--
          (A) completing the project would allow operations at 
        the airport involving aircraft complying with the noise 
        standards prescribed for ``stage 3'' aircraft in 
        section 36.1 of title 14, Code of Federal Regulations, 
        to replace existing operations involving aircraft that 
        do not comply with those standards; and
          (B) the project meets the other requirements under 
        this subchapter.
  (3) At the Secretary's request, the sponsor shall give the 
Secretary a copy of the transcript of any hearing held under 
paragraph (1)(A) of this subsection.
  (4) The Secretary may make a finding under paragraph (1)(B) 
of this subsection only after completely reviewing the matter. 
The review and finding must be a matter of public record.
  (d) Withholding Approval.--(1) The Secretary may withhold 
approval of an application under this subchapter for amounts 
apportioned under section 47114(c) and (e) of this title for 
violating an assurance or requirement of this subchapter only 
if--
          (A) the Secretary provides the sponsor an opportunity 
        for a hearing; and
          (B) not later than 180 days after the later of the 
        date of the application or the date the Secretary 
        discovers the noncompliance, the Secretary finds that a 
        violation has occurred.
  (2) The 180-day period may be extended by--
          (A) agreement between the Secretary and the sponsor; 
        or
          (B) the hearing officer if the officer decides an 
        extension is necessary because the sponsor did not 
        follow the schedule the officer established.
  (3) A person adversely affected by an order of the Secretary 
withholding approval may obtain review of the order by filing a 
petition in the United States Court of Appeals for the District 
of Columbia Circuit or in the court of appeals of the United 
States for the circuit in which the project is located. The 
action must be brought not later than 60 days after the order 
is served on the petitioner.
  (e) Reports Relating to Construction of Certain New Hub 
Airports.--At least 90 days prior to the approval under this 
subchapter of a project grant application for construction of a 
new hub airport that is expected to have 0.25 percent or more 
of the total annual enplanements in the United States, the 
Secretary shall submit to Congress a report analyzing the 
anticipated impact of such proposed new airport on--
          (1) the fees charged to air carriers (including 
        landing fees), and other costs that will be incurred by 
        air carriers, for using the proposed airport;
          (2) air transportation that will be provided in the 
        geographic region of the proposed airport; and
          (3) the availability and cost of providing air 
        transportation to rural areas in such geographic 
        region.
  (f) Competition Plans.--
          (1) Prohibition.--Beginning in fiscal year 2001, no 
        passenger facility charge may be approved for a covered 
        airport under section 40117 and no grant may be made 
        under this subchapter for a covered airport unless the 
        airport has submitted to the Secretary a written 
        competition plan in accordance with this subsection.
          (2) Contents.--A competition plan under this 
        subsection shall include information on the 
        availability of airport gates and related facilities, 
        leasing and sub-leasing arrangements, gate-use 
        requirements, gate-assignment policy, financial 
        constraints, airport controls over air- and ground-side 
        capacity, and whether the airport intends to build or 
        acquire gates that would be used as common facilities.
          (3) Special rule for fiscal year 2002.--This 
        subsection does not apply to any passenger facility fee 
        approved, or grant made, in fiscal year 2002 if the fee 
        or grant is to be used to improve security at a covered 
        airport.
          (4) Covered airport defined.--In this subsection, the 
        term ``covered airport'' means a commercial service 
        airport--
                  (A) that has more than .25 percent of the 
                total number of passenger boardings each year 
                at all such airports; and
                  (B) at which one or two air carriers control 
                more than 50 percent of the passenger 
                boardings.
  (g) Consultation with Secretary of Homeland Security.--The 
Secretary shall consult with the Secretary of Homeland Security 
before approving an application under this subchapter for an 
airport development project grant for activities described in 
section 47102(3)(B)(ii) only as they relate to security 
equipment or section 47102(3)(B)(x) only as they relate to 
installation of bulk explosive detection system.

Sec. 47107. Project grant application approval conditioned on 
                    assurances about airport operations

  (a) General Written Assurances.--The Secretary of 
Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that--
          (1) the airport will be available for public use on 
        reasonable conditions and without unjust 
        discrimination;
          (2) air carriers making similar use of the airport 
        will be subject to substantially comparable charges--
                  (A) for facilities directly and substantially 
                related to providing air transportation; and
                  (B) regulations and conditions, except for 
                differences based on reasonable 
                classifications, such as between--
                          (i) tenants and nontenants; and
                          (ii) signatory and nonsignatory 
                        carriers;
          (3) the airport operator will not withhold 
        unreasonably the classification or status of tenant or 
        signatory from an air carrier that assumes obligations 
        substantially similar to those already imposed on air 
        carriers of that classification or status;
          (4) a person providing, or intending to provide, 
        aeronautical services to the public will not be given 
        an exclusive right to use the airport, with a right 
        given to only one fixed-base operator to provide 
        services at an airport deemed not to be an exclusive 
        right if--
                  (A) the right would be unreasonably costly, 
                burdensome, or impractical for more than one 
                fixed-base operator to provide the services; 
                and
                  (B) allowing more than one fixed-base 
                operator to provide the services would require 
                reducing the space leased under an existing 
                agreement between the one fixed-base operator 
                and the airport owner or operator;
          (5) fixed-base operators similarly using the airport 
        will be subject to the same charges;
          (6) an air carrier using the airport may service 
        itself or use any fixed-base operator allowed by the 
        airport operator to service any carrier at the airport;
          (7) the airport and facilities on or connected with 
        the airport will be operated and maintained suitably, 
        with consideration given to climatic and flood 
        conditions;
          (8) a proposal to close the airport temporarily for a 
        nonaeronautical purpose must first be approved by the 
        Secretary;
          (9) appropriate action will be taken to ensure that 
        terminal airspace required to protect instrument and 
        visual operations to the airport (including operations 
        at established minimum flight altitudes) will be 
        cleared and protected by mitigating existing, and 
        preventing future, airport hazards;
          (10) appropriate action, including the adoption of 
        zoning laws, has been or will be taken to the extent 
        reasonable to restrict the use of land next to or near 
        the airport to uses that are compatible with normal 
        airport operations;
          (11) each of the airport's facilities developed with 
        financial assistance from the United States Government 
        and each of the airport's facilities usable for the 
        landing and taking off of aircraft always will be 
        available without charge for use by Government aircraft 
        in common with other aircraft, except that if the use 
        is substantial, the Government may be charged a 
        reasonable share, proportionate to the use, of the cost 
        of operating and maintaining the facility used;
          (12) the airport owner or operator will provide, 
        without charge to the Government, property interests of 
        the sponsor in land or water areas or buildings that 
        the Secretary decides are desirable for, and that will 
        be used for, constructing at Government expense, 
        facilities for carrying out activities related to air 
        traffic control or navigation;
          (13) the airport owner or operator will maintain a 
        schedule of charges for use of facilities and services 
        at the airport--
                  (A) that will make the airport as self-
                sustaining as possible under the circumstances 
                existing at the airport, including volume of 
                traffic and economy of collection; and
                  (B) without including in the rate base used 
                for the charges the Government's share of costs 
                for any project for which a grant is made under 
                this subchapter or was made under the Federal 
                Airport Act or the Airport and Airway 
                Development Act of 1970;
          (14) the project accounts and records will be kept 
        using a standard system of accounting that the 
        Secretary, after consulting with appropriate public 
        agencies, prescribes;
          (15) the airport owner or operator will submit any 
        annual or special airport financial and operations 
        reports to the Secretary that the Secretary reasonably 
        requests and make such reports available to the public;
          (16) the airport owner or operator will maintain a 
        current layout plan of the airport that meets the 
        following requirements:
                  (A) the plan will be in a form the Secretary 
                prescribes;
                  (B) the Secretary will approve the plan and 
                any revision or modification before the plan, 
                revision, or modification takes effect;
                  (C) the owner or operator will not make or 
                allow any alteration in the airport or any of 
                its facilities if the alteration does not 
                comply with the plan the Secretary approves, 
                and the Secretary is of the opinion that the 
                alteration may affect adversely the safety, 
                utility, or efficiency of the airport; and
                  (D) when an alteration in the airport or its 
                facility is made that does not conform to the 
                approved plan and that the Secretary decides 
                adversely affects the safety, utility, or 
                efficiency of any property on or off the 
                airport that is owned, leased, or financed by 
                the Government, the owner or operator, if 
                requested by the Secretary, will--
                          (i) eliminate the adverse effect in a 
                        way the Secretary approves; or
                          (ii) bear all cost of relocating the 
                        property or its replacement to a site 
                        acceptable to the Secretary and of 
                        restoring the property or its 
                        replacement to the level of safety, 
                        utility, efficiency, and cost of 
                        operation that existed before the 
                        alteration was made, except in the case 
                        of a relocation or replacement of an 
                        existing airport facility that meets 
                        the conditions of section 47110(d);
          (17) each contract and subcontract for program 
        management, construction management, planning studies, 
        feasibility studies, architectural services, 
        preliminary engineering, design, engineering, 
        surveying, mapping, and related services will be 
        awarded in the same way that a contract for 
        architectural and engineering services is negotiated 
        under chapter 11 of title 40 or an equivalent 
        qualifications-based requirement prescribed for or by 
        the sponsor;
          (18) the airport and each airport record will be 
        available for inspection by the Secretary on reasonable 
        request, and a report of the airport budget will be 
        available to the public at reasonable times and places;
          (19) the airport owner or operator will submit to the 
        Secretary and make available to the public an annual 
        report listing in detail--
                  (A) all amounts paid by the airport to any 
                other unit of government and the purposes for 
                which each such payment was made; and
                  (B) all services and property provided to 
                other units of government and the amount of 
                compensation received for provision of each 
                such service and property;
          (20) the airport owner or operator will permit, to 
        the maximum extent practicable, intercity buses or 
        other modes of transportation to have access to the 
        airport, but the sponsor does not have any obligation 
        under this paragraph, or because of it, to fund special 
        facilities for intercity bus service or for other modes 
        of transportation; [and]
          (21) if the airport owner or operator and a person 
        who owns an aircraft agree that a hangar is to be 
        constructed at the airport for the aircraft at the 
        aircraft owner's expense, the airport owner or operator 
        will grant to the aircraft owner for the hangar a long- 
        term lease that is subject to such terms and conditions 
        on the hangar as the airport owner or operator may 
        impose[.]; and
          (22) with respect to a medium or large hub airport, 
        the airport owner or operator will maintain a lactation 
        area in each passenger terminal building of the airport 
        in the sterile area (as defined in section 1540.5 of 
        title 49, Code of Federal Regulations) of the building.
  (b) Written Assurances on Use of Revenue.--(1) The Secretary 
of Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that local taxes on aviation fuel (except taxes in 
effect on December 30, 1987) and the revenues generated by a 
public airport will be expended for the capital or operating 
costs of--
          (A) the airport;
          (B) the local airport system; or
          (C) other local facilities owned or operated by the 
        airport owner or operator and directly and 
        substantially related to the air transportation of 
        passengers or property.
  (2) Paragraph (1) of this subsection does not apply if a 
provision enacted not later than September 2, 1982, in a law 
controlling financing by the airport owner or operator, or a 
covenant or assurance in a debt obligation issued not later 
than September 2, 1982, by the owner or operator, provides that 
the revenues, including local taxes on aviation fuel at public 
airports, from any of the facilities of the owner or operator, 
including the airport, be used to support not only the airport 
but also the general debt obligations or other facilities of 
the owner or operator.
  (3) This subsection does not prevent the use of a State tax 
on aviation fuel to support a State aviation program or the use 
of airport revenue on or off the airport for a noise mitigation 
purpose.
  (c) Written Assurances on Acquiring Land.--(1) In this 
subsection, land is needed for an airport purpose (except a 
noise compatibility purpose) if--
          (A)(i) the land may be needed for an aeronautical 
        purpose (including runway protection zone) or serves as 
        noise buffer land; and
          (ii) revenue from interim uses of the land 
        contributes to the financial self-sufficiency of the 
        airport; and
          (B) for land purchased with a grant the owner or 
        operator received not later than December 30, 1987, the 
        Secretary of Transportation or the department, agency, 
        or instrumentality of the Government that made the 
        grant was notified by the owner or operator of the use 
        of the land and did not object to the use and the land 
        is still being used for that purpose.
  (2) The Secretary of Transportation may approve an 
application under this subchapter for an airport development 
project grant only if the Secretary receives written 
assurances, satisfactory to the Secretary, that if an airport 
owner or operator has received or will receive a grant for 
acquiring land and--
          (A) if the land was or will be acquired for a noise 
        compatibility 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)--
                  (i) the owner or operator will dispose of the 
                land at fair market value at the earliest 
                practicable time after the land no longer is 
                needed for a noise compatibility purpose;
                  (ii) the disposition will be subject to 
                retaining or reserving an interest in the land 
                necessary to ensure that the land will be used 
                in a way that is compatible with noise levels 
                associated with operating the airport; and
                  (iii) the part of the proceeds from disposing 
                of the land that is proportional to the 
                Government's share of the cost of acquiring the 
                land will be reinvested in another project at 
                the airport or transferred to another airport 
                as the Secretary prescribes under paragraph 
                (4); or
          (B) if the land was or will be acquired for an 
        airport purpose (except a noise compatibility 
        purpose)--
                  (i) the owner or operator, when the land no 
                longer is needed for an airport purpose, will 
                dispose of the land at fair market value or 
                make available to the Secretary an amount equal 
                to the Government's proportional share of the 
                fair market value;
                  (ii) the disposition will be subject to 
                retaining or reserving an interest in the land 
                necessary to ensure that the land will be used 
                in a way that is compatible with noise levels 
                associated with operating the airport; and
                  (iii) the part of the proceeds from disposing 
                of the land that is proportional to the 
                Government's share of the cost of acquiring the 
                land will be reinvested in another project at 
                the airport or transferred to another airport 
                as the Secretary prescribes under paragraph 
                (4).
  (3) Proceeds referred to in paragraph (2)(A)(iii) and 
(B)(iii) of this subsection and deposited in the Airport and 
Airway Trust Fund are available as provided in subsection (f) 
of this section.
  (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.
  (d) Assurances of Continuation as Public-Use Airport.--The 
Secretary of Transportation may approve an application under 
this subchapter for an airport development project grant for a 
privately owned public-use airport only if the Secretary 
receives appropriate assurances that the airport will continue 
to function as a public-use airport during the economic life 
(that must be at least 10 years) of any facility at the airport 
that was developed with Government financial assistance under 
this subchapter.
  (e) Written Assurances of Opportunities for Small Business 
Concerns.--(1) The Secretary of Transportation may approve a 
project grant application under this subchapter for an airport 
development project only if the Secretary receives written 
assurances, satisfactory to the Secretary, that the airport 
owner or operator will take necessary action to ensure, to the 
maximum extent practicable, that at least 10 percent of all 
businesses at the airport selling consumer products or 
providing consumer services to the public are small business 
concerns (as defined by regulations of the Secretary) owned and 
controlled by a socially and economically disadvantaged 
individual (as defined in section 47113(a) of this title) or 
qualified HUBZone small business concerns (as defined in 
section 3(p) of the Small Business Act).
  (2) An airport owner or operator may meet the percentage goal 
of paragraph (1) of this subsection by including any business 
operated through a management contract or subcontract. The 
dollar amount of a management contract or subcontract with a 
disadvantaged business enterprise shall be added to the total 
participation by disadvantaged business enterprises in airport 
concessions and to the base from which the airport's percentage 
goal is calculated. The dollar amount of a management contract 
or subcontract with a non-disadvantaged business enterprise and 
the gross revenue of business activities to which the 
management contract or subcontract pertains may not be added to 
this base.
  (3) Except as provided in paragraph (4) of this subsection, 
an airport owner or operator may meet the percentage goal of 
paragraph (1) of this subsection by including the purchase from 
disadvantaged business enterprises of goods and services used 
in businesses conducted at the airport, but the owner or 
operator and the businesses conducted at the airport shall make 
good faith efforts to explore all available options to achieve, 
to the maximum extent practicable, compliance with the goal 
through direct ownership arrangements, including joint ventures 
and franchises.
  (4)(A) In complying with paragraph (1) of this subsection, an 
airport owner or operator shall include the revenues of car 
rental firms at the airport in the base from which the 
percentage goal in paragraph (1) is calculated.
  (B) An airport owner or operator may require a car rental 
firm to meet a requirement under paragraph (1) of this 
subsection by purchasing or leasing goods or services from a 
disadvantaged business enterprise. If an owner or operator 
requires such a purchase or lease, a car rental firm shall be 
permitted to meet the requirement by including purchases or 
leases of vehicles from any vendor that qualifies as a small 
business concern owned and controlled by a socially and 
economically disadvantaged individual or as a qualified HUBZone 
small business concern (as defined in section 3(p) of the Small 
Business Act).
  (C) This subsection does not require a car rental firm to 
change its corporate structure to provide for direct ownership 
arrangements to meet the requirements of this subsection.
  (5) This subsection does not preempt--
          (A) a State or local law, regulation, or policy 
        enacted by the governing body of an airport owner or 
        operator; or
          (B) the authority of a State or local government or 
        airport owner or operator to adopt or enforce a law, 
        regulation, or policy related to disadvantaged business 
        enterprises.
  (6) An airport owner or operator may provide opportunities 
for a small business concern owned and controlled by a socially 
and economically disadvantaged individual or a qualified 
HUBZone small business concern (as defined in section 3(p) of 
the Small Business Act) to participate through direct 
contractual agreement with that concern.
  (7) An air carrier that provides passenger or property-
carrying services or another business that conducts 
aeronautical activities at an airport may not be included in 
the percentage goal of paragraph (1) of this subsection for 
participation of small business concerns at the airport.
  (8) Not later than April 29, 1993, the Secretary of 
Transportation shall prescribe regulations to carry out this 
subsection.
  (f) Availability of Amounts.--An amount deposited in the 
Airport and Airway Trust Fund under--
          (1) subsection (c)(2)(A)(iii) of this section is 
        available to the Secretary of Transportation to make a 
        grant for airport development or airport planning under 
        section 47104 of this title;
          (2) subsection (c)(2)(B)(iii) of this section is 
        available to the Secretary--
                  (A) to make a grant for a purpose described 
                in section 47115(b) of this title; and
                  (B) for use under section 47114(d)(2) of this 
                title at another airport in the State in which 
                the land was disposed of under subsection 
                (c)(2)(B)(ii) of this section; and
          (3) subsection (c)(2)(B)(iii) of this section is in 
        addition to an amount made available to the Secretary 
        under section 48103 of this title and not subject to 
        apportionment under section 47114 of this title.
  (g) Ensuring Compliance.--(1) To ensure compliance with this 
section, the Secretary of Transportation--
          (A) shall prescribe requirements for sponsors that 
        the Secretary considers necessary; and
          (B) may make a contract with a public agency.
  (2) The Secretary of Transportation may approve an 
application for a project grant only if the Secretary is 
satisfied that the requirements prescribed under paragraph 
(1)(A) of this subsection have been or will be met.
  (h) Modifying Assurances and Requiring Compliance With 
Additional Assurances.--
          (1) In general.--Subject to paragraph (2), before 
        modifying an assurance required of a person receiving a 
        grant under this subchapter and in effect after 
        December 29, 1987, or to require compliance with an 
        additional assurance from the person, the Secretary of 
        Transportation must--
                  (A) publish notice of the proposed 
                modification in the Federal Register; and
                  (B) provide an opportunity for comment on the 
                proposal.
          (2) Public notice before waiver of aeronautical land-
        use assurance.--Before modifying an assurance under 
        subsection (c)(2)(B) that requires any property to be 
        used for an aeronautical purpose, the Secretary must 
        provide notice to the public not less than 30 days 
        before making such modification.
  (i) Relief From Obligation To Provide Free Space.--When a 
sponsor provides a property interest in a land or water area or 
a building that the Secretary of Transportation uses to 
construct a facility at Government expense, the Secretary may 
relieve the sponsor from an obligation in a contract made under 
this chapter, the Airport and Airway Development Act of 1970, 
or the Federal Airport Act to provide free space to the 
Government in an airport building, to the extent the Secretary 
finds that the free space no longer is needed to carry out 
activities related to air traffic control or navigation.
  (j) Use of Revenue in Hawaii.--(1) In this subsection--
          (A) ``duty-free merchandise'' and ``duty-free sales 
        enterprise'' have the same meanings given those terms 
        in section 555(b)(8) of the Tariff Act of 1930 (19 
        U.S.C. 1555(b)(8)).
          (B) ``highway'' and ``Federal-aid system'' have the 
        same meanings given those terms in section 101(a) of 
        title 23.
  (2) Notwithstanding subsection (b)(1) of this section, Hawaii 
may use, for a project for construction or reconstruction of a 
highway on a Federal-aid system that is not more than 10 miles 
by road from an airport and that will facilitate access to the 
airport, revenue from the sales at off-airport locations in 
Hawaii of duty-free merchandise under a contract between Hawaii 
and a duty-free sales enterprise. However, the revenue 
resulting during a Hawaiian fiscal year may be used only if the 
amount of the revenue, plus amounts Hawaii receives in the 
fiscal year from all other sources for costs Hawaii incurs for 
operating all airports it operates and for debt service related 
to capital projects for the airports (including interest and 
amortization of principal costs), is more than 150 percent of 
the projected costs for the fiscal year.
  (3)(A) Revenue from sales referred to in paragraph (2) of 
this subsection in a Hawaiian fiscal year that Hawaii may use 
may not be more than the amount that is greater than 150 
percent as determined under paragraph (2).
  (B) The maximum amount of revenue Hawaii may use under 
paragraph (2) of this subsection is $250,000,000.
  (4) If a fee imposed or collected for rent, landing, or 
service from an aircraft operator by an airport operated by 
Hawaii is increased during the period from May 4, 1990, through 
December 31, 1994, by more than the percentage change in the 
Consumer Price Index of All Urban Consumers for Honolulu, 
Hawaii, that the Secretary of Labor publishes during that 
period and if revenue derived from the fee increases because 
the fee increased, the amount under paragraph (3)(B) of this 
subsection shall be reduced by the amount of the projected 
revenue increase in the period less the part of the increase 
attributable to changes in the Index in the period.
  (5) Hawaii shall determine costs, revenue, and projected 
revenue increases referred to in this subsection and shall 
submit the determinations to the Secretary of Transportation. A 
determination is approved unless the Secretary disapproves it 
not later than 30 days after it is submitted.
  (6) Hawaii is not eligible for a grant under section 47115 of 
this title in a fiscal year in which Hawaii uses under 
paragraph (2) of this subsection revenue from sales referred to 
in paragraph (2). Hawaii shall repay amounts it receives in a 
fiscal year under a grant it is not eligible to receive because 
of this paragraph to the Secretary of Transportation for 
deposit in the discretionary fund established under section 
47115.
  (7)(A) This subsection applies only to revenue from sales 
referred to in paragraph (2) of this subsection from May 5, 
1990, through December 30, 1994, and to amounts in the Airport 
Revenue Fund of Hawaii that are attributable to revenue before 
May 4, 1990, on sales referred to in paragraph (2).
  (B) Revenue from sales referred to in paragraph (2) of this 
subsection from May 5, 1990, through December 30, 1994, may be 
used under paragraph (2) in any Hawaiian fiscal year, including 
a Hawaiian fiscal year beginning after December 31, 1994.
  (k) Policies and Procedures To Ensure Enforcement Against 
Illegal Diversion of Airport Revenue.--
          (1) In general.--Not later than 90 days after August 
        23, 1994, the Secretary of Transportation shall 
        establish policies and procedures that will assure the 
        prompt and effective enforcement of subsections (a)(13) 
        and (b) of this section and grant assurances made under 
        such subsections. Such policies and procedures shall 
        recognize the exemption provision in subsection (b)(2) 
        of this section and shall respond to the information 
        contained in the reports of the Inspector General of 
        the Department of Transportation on airport revenue 
        diversion and such other relevant information as the 
        Secretary may by law consider.
          (2) Revenue diversion.--Policies and procedures to be 
        established pursuant to paragraph (1) of this 
        subsection shall prohibit, at a minimum, the diversion 
        of airport revenues (except as authorized under 
        subsection (b) of this section) through--
                  (A) direct payments or indirect payments, 
                other than payments reflecting the value of 
                services and facilities provided to the 
                airport;
                  (B) use of airport revenues for general 
                economic development, marketing, and 
                promotional activities unrelated to airports or 
                airport systems;
                  (C) payments in lieu of taxes or other 
                assessments that exceed the value of services 
                provided; or
                  (D) payments to compensate nonsponsoring 
                governmental bodies for lost tax revenues 
                exceeding stated tax rates.
          (3) Efforts to be self-sustaining.--With respect to 
        subsection (a)(13) of this section, policies and 
        procedures to be established pursuant to paragraph (1) 
        of this subsection shall take into account, at a 
        minimum, whether owners and operators of airports, when 
        entering into new or revised agreements or otherwise 
        establishing rates, charges, and fees, have undertaken 
        reasonable efforts to make their particular airports as 
        self-sustaining as possible under the circumstances 
        existing at such airports.
          (4) Administrative safeguards.--Policies and 
        procedures to be established pursuant to paragraph (1) 
        shall mandate internal controls, auditing requirements, 
        and increased levels of Department of Transportation 
        personnel sufficient to respond fully and promptly to 
        complaints received regarding possible violations of 
        subsections (a)(13) and (b) of this section and grant 
        assurances made under such subsections and to alert the 
        Secretary to such possible violations.
          (5) Statute of limitations.--In addition to the 
        statute of limitations specified in subsection (m)(7), 
        with respect to project grants made under this 
        chapter--
                  (A) any request by a sponsor or any other 
                governmental entity to any airport for 
                additional payments for services conducted off 
                of the airport or for reimbursement for capital 
                contributions or operating expenses shall be 
                filed not later than 6 years after the date on 
                which the expense is incurred; and
                  (B) any amount of airport funds that are used 
                to make a payment or reimbursement as described 
                in subparagraph (A) after the date specified in 
                that subparagraph shall be considered to be an 
                illegal diversion of airport revenues that is 
                subject to subsection (m).
  (l) Audit Certification.--
          (1) In general.--The Secretary of Transportation, 
        acting through the Administrator of the Federal 
        Aviation Administration, shall include a provision in 
        the compliance supplement provisions to require a 
        recipient of a project grant (or any other recipient of 
        Federal financial assistance that is provided for an 
        airport) to include as part of an annual audit 
        conducted under sections 7501 through 7505 of title 31, 
        a review concerning the funding activities with respect 
        to an airport that is the subject of the project grant 
        (or other Federal financial assistance) and the 
        sponsors, owners, or operators (or other recipients) 
        involved.
          (2) Content of review.--A review conducted under 
        paragraph (1) shall provide reasonable assurances that 
        funds paid or transferred to sponsors are paid or 
        transferred in a manner consistent with the applicable 
        requirements of this chapter and any other applicable 
        provision of law (including regulations promulgated by 
        the Secretary or the Administrator).
  (m) Recovery of Illegally Diverted Funds.--
          (1) In general.--Not later than 180 days after the 
        issuance of an audit or any other report that 
        identifies an illegal diversion of airport revenues (as 
        determined under subsections (b) and (k) and section 
        47133), the Secretary, acting through the 
        Administrator, shall--
                  (A) review the audit or report;
                  (B) perform appropriate factfinding; and
                  (C) conduct a hearing and render a final 
                determination concerning whether the illegal 
                diversion of airport revenues asserted in the 
                audit or report occurred.
          (2) Notification.--Upon making such a finding, the 
        Secretary, acting through the Administrator, shall 
        provide written notification to the sponsor and the 
        airport of--
                  (A) the finding; and
                  (B) the obligations of the sponsor to 
                reimburse the airport involved under this 
                paragraph.
          (3) Administrative action.--The Secretary may 
        withhold any amount from funds that would otherwise be 
        made available to the sponsor, including funds that 
        would otherwise be made available to a State, 
        municipality, or political subdivision thereof 
        (including any multimodal transportation agency or 
        transit authority of which the sponsor is a member 
        entity) as part of an apportionment or grant made 
        available pursuant to this title, if the sponsor--
                  (A) receives notification that the sponsor is 
                required to reimburse an airport; and
                  (B) has had an opportunity to reimburse the 
                airport, but has failed to do so.
          (4) Civil action.--If a sponsor fails to pay an 
        amount specified under paragraph (3) during the 180-day 
        period beginning on the date of notification and the 
        Secretary is unable to withhold a sufficient amount 
        under paragraph (3), the Secretary, acting through the 
        Administrator, may initiate a civil action under which 
        the sponsor shall be liable for civil penalty in an 
        amount equal to the illegal diversion in question plus 
        interest (as determined under subsection (n)).
          (5) Disposition of penalties.--
                  (A) Amounts withheld.--The Secretary or the 
                Administrator shall transfer any amounts 
                withheld under paragraph (3) to the Airport and 
                Airway Trust Fund.
                  (B) Civil penalties.--With respect to any 
                amount collected by a court in a civil action 
                under paragraph (4), the court shall cause to 
                be transferred to the Airport and Airway Trust 
                Fund any amount collected as a civil penalty 
                under paragraph (4).
          (6) Reimbursement.--The Secretary, acting through the 
        Administrator, shall, as soon as practicable after any 
        amount is collected from a sponsor under paragraph (4), 
        cause to be transferred from the Airport and Airway 
        Trust Fund to an airport affected by a diversion that 
        is the subject of a civil action under paragraph (4), 
        reimbursement in an amount equal to the amount that has 
        been collected from the sponsor under paragraph (4) 
        (including any amount of interest calculated under 
        subsection (n)).
          (7) Statute of limitations.--No person may bring an 
        action for the recovery of funds illegally diverted in 
        violation of this section (as determined under 
        subsections (b) and (k)) or section 47133 after the 
        date that is 6 years after the date on which the 
        diversion occurred.
  (n) Interest.--
          (1) In general.--Except as provided in paragraph (2), 
        the Secretary, acting through the Administrator, shall 
        charge a minimum annual rate of interest on the amount 
        of any illegal diversion of revenues referred to in 
        subsection (m) in an amount equal to the average 
        investment interest rate for tax and loan accounts of 
        the Department of the Treasury (as determined by the 
        Secretary of the Treasury) for the applicable calendar 
        year, rounded to the nearest whole percentage point.
          (2) Adjustment of interest rates.--If, with respect 
        to a calendar quarter, the average investment interest 
        rate for tax and loan accounts of the Department of the 
        Treasury exceeds the average investment interest rate 
        for the immediately preceding calendar quarter, rounded 
        to the nearest whole percentage point, the Secretary of 
        the Treasury may adjust the interest rate charged under 
        this subsection in a manner that reflects that change.
          (3) Accrual.--Interest assessed under subsection (m) 
        shall accrue from the date of the actual illegal 
        diversion of revenues referred to in subsection (m).
          (4) Determination of applicable rate.--The applicable 
        rate of interest charged under paragraph (1) shall--
                  (A) be the rate in effect on the date on 
                which interest begins to accrue under paragraph 
                (3); and
                  (B) remain at a rate fixed under subparagraph 
                (A) during the duration of the indebtedness.
  (o) Payment by Airport to Sponsor.--If, in the course of an 
audit or other review conducted under this section, the 
Secretary or the Administrator determines that an airport owes 
a sponsor funds as a result of activities conducted by the 
sponsor or expenditures by the sponsor for the benefit of the 
airport, interest on that amount shall be determined in the 
same manner as provided in paragraphs (1) through (4) of 
subsection (n), except that the amount of any interest assessed 
under this subsection shall be determined from the date on 
which the Secretary or the Administrator makes that 
determination.
  (p) Notwithstanding any written assurances prescribed in 
subsections (a) through (o), a general aviation airport with 
more than 300,000 annual operations may be exempt from having 
to accept scheduled passenger air carrier service, provided 
that the following conditions are met:
          (1) No scheduled passenger air carrier has provided 
        service at the airport within 5 years prior to January 
        1, 2002.
          (2) The airport is located within or underneath the 
        Class B airspace of an airport that maintains an 
        airport operating certificate pursuant to section 44706 
        of title 49.
          (3) The certificated airport operating under section 
        44706 of title 49 does not contribute to significant 
        passenger delays as defined by DOT/FAA in the ``Airport 
        Capacity Benchmark Report 2001''.
  (q) An airport that meets the conditions of paragraphs (1) 
through (3) of subsection (p) is not subject to section 47524 
of title 49 with respect to a prohibition on all scheduled 
passenger service.
  (r) Competition Disclosure Requirement.--
          (1) In general.--The Secretary of Transportation may 
        approve an application under this subchapter for an 
        airport development project grant for a large hub 
        airport or a medium hub airport only if the Secretary 
        receives assurances that the airport sponsor will 
        provide the information required by paragraph (2) at 
        such time and in such form as the Secretary may 
        require.
          (2) Competitive access.--On February 1 and August 1 
        of each year, an airport that during the previous 6-
        month period has been unable to accommodate one or more 
        requests by an air carrier for access to gates or other 
        facilities at that airport in order to provide service 
        to the airport or to expand service at the airport 
        shall transmit a report to the Secretary that--
                  (A) describes the requests;
                  (B) provides an explanation as to why the 
                requests could not be accommodated; and
                  (C) provides a time frame within which, if 
                any, the airport will be able to accommodate 
                the requests.
          (3) Sunset provision.--This subsection shall cease to 
        be effective beginning [October 1, 2017] October 1, 
        2023 .
  (s) 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.
  (t) Renewal of Certain Leases.--
          (1) In general.--Notwithstanding subsection (a)(13), 
        an airport owner or operator who renews a covered lease 
        shall not be treated as violating a written assurance 
        requirement under this section as a result of such 
        renewal.
          (2) Covered lease defined.--In this subsection, the 
        term ``covered lease'' means a lease--
                  (A) originally entered into before the date 
                of enactment of this subsection;
                  (B) under which a nominal lease rate is 
                provided;
                  (C) under which the lessee is a Federal or 
                State government entity; and
                  (D) that supports the operation of military 
                aircraft by the Air Force or Air National 
                Guard--
                          (i) at the airport; or
                          (ii) remotely from the airport.
  (u) Construction of Recreational Aircraft.--
          (1) In general.--The construction of a covered 
        aircraft shall be treated as an aeronautical activity 
        for purposes of--
                  (A) determining an airport's compliance with 
                a grant assurance made under this section or 
                any other provision of law; and
                  (B) the receipt of Federal financial 
                assistance for airport development.
          (2) Covered aircraft defined.--In this subsection, 
        the term ``covered aircraft'' means an aircraft--
                  (A) used or intended to be used exclusively 
                for recreational purposes; and
                  (B) constructed or under construction by a 
                private individual at a general aviation 
                airport.
  (v) Community Use of Airport Land.--
          (1) In general.--Notwithstanding subsection (a)(13), 
        and subject to paragraph (2), the sponsor of a public-
        use airport shall not be considered to be in violation 
        of this subtitle, or to be found 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 has entered 
        into an agreement, including a revised agreement, with 
        a local government providing for the use of airport 
        property for an interim compatible recreational purpose 
        at below fair market value.
          (2) Restrictions.--This subsection shall apply only--
                  (A) to an agreement regarding airport 
                property that was initially entered into before 
                the publication of the Federal Aviation 
                Administration's Policy and Procedures 
                Concerning the Use of Airport Revenue, dated 
                February 16, 1999;
                  (B) if the agreement between the sponsor and 
                the local government is subordinate to any 
                existing or future agreements between the 
                sponsor and the Secretary, including agreements 
                related to a grant assurance under this 
                section;
                  (C) to airport property that was acquired 
                under a Federal airport development grant 
                program;
                  (D) if the airport sponsor has provided a 
                written statement to the Administrator that the 
                property made available for a recreational 
                purpose will not be needed for any aeronautical 
                purpose during the next 10 years;
                  (E) if the agreement includes a term of not 
                more than 2 years to prepare the airport 
                property for the interim compatible 
                recreational purpose and not more than 10 years 
                of use for that purpose;
                  (F) if the recreational purpose will not 
                impact the aeronautical use of the airport;
                  (G) if the airport sponsor provides a 
                certification that the sponsor is not 
                responsible for preparation, start-up, 
                operations, maintenance, or any other costs 
                associated with the recreational purpose; and
                  (H) if the recreational purpose is consistent 
                with Federal land use compatibility criteria 
                under section 47502.
          (3) Statutory construction.--Nothing in this 
        subsection may be construed as permitting a diversion 
        of airport revenue for the capital or operating costs 
        associated with the community use of airport land.

           *       *       *       *       *       *       *

Sec. 47109. United States Government's share of project costs

  (a) General.--Except as otherwise provided in this section, 
the United States Government's share of allowable project costs 
is--
          (1) 75 percent for a project at a [primary airport 
        having at least .25 percent of the total number of 
        passenger boardings each year at all commercial service 
        airports;] medium or large hub airport;
          (2) not more than 90 percent for a project funded by 
        a grant issued to and administered by a State under 
        section 47128, relating to the State block grant 
        program;
          (3) 90 percent for a project at any other airport;
          (4) 70 percent for a project funded by the 
        Administrator from the discretionary fund under section 
        47115 at an airport receiving an exemption under 
        section 47134; and
          [(5) for fiscal year 2002, 100 percent for a project 
        described in section 47102(3)(J), 47102(3)(K), or 
        47102(3)(L). ]
          (5) 95 percent for a project that--
                  (A) the Administrator determines is a 
                successive phase of a multi-phase construction 
                project for which the sponsor received a grant 
                in fiscal year 2011; and
                  (B) for which the United States Government's 
                share of allowable project costs could 
                otherwise be 90 percent under paragraph (2) or 
                (3).
  (b) Increased Government Share.--If, under subsection (a) of 
this section, the Government's share of allowable costs of a 
project in a State containing unappropriated and unreserved 
public lands and nontaxable Indian lands (individual and 
tribal) of more than 5 percent of the total area of all lands 
in the State, is less than the share applied on June 30, 1975, 
under section 17(b) of the Airport and Airway Development Act 
of 1970, the Government's share under subsection (a) of this 
section shall be increased by the lesser of--
          (1) 25 percent;
          (2) one-half of the percentage that the area of 
        unappropriated and unreserved public lands and 
        nontaxable Indian lands in the State is of the total 
        area of the State; or
          (3) the percentage necessary to increase the 
        Government's share to the percentage that applied on 
        June 30, 1975, under section 17(b) of the Act.
  (c) Grandfather Rule.--
          (1) In general.--In the case of any project approved 
        after September 30, 2003, at a small hub airport or 
        nonhub airport that is located in a State containing 
        unappropriated and unreserved public lands and 
        nontaxable Indian lands (individual and tribal) of more 
        than 5 percent of the total area of all lands in the 
        State, the Government's share of allowable costs of the 
        project shall be increased by the same ratio as the 
        basic share of allowable costs of a project divided 
        into the increased (Public Lands States) share of 
        allowable costs of a project as shown on documents of 
        the Federal Aviation Administration dated August 3, 
        1979, at airports for which the general share was 80 
        percent on August 3, 1979. This subsection shall apply 
        only if--
                  (A) the State contained unappropriated and 
                unreserved public lands and nontaxable Indian 
                lands of more than 5 percent of the total area 
                of all lands in the State on August 3, 1979; 
                and
                  (B) the application under subsection (b), 
                does not increase the Government's share of 
                allowable costs of the project.
          (2) Limitation.--The Government's share of allowable 
        project costs determined under this subsection shall 
        not exceed the lesser of 93.75 percent or the highest 
        percentage Government share applicable to any project 
        in any State under subsection (b), except that at a 
        primary non-hub and non-primary commercial service 
        airport located in a State as set forth in paragraph 
        (1) of this subsection that is within 15 miles of 
        another State as set forth in paragraph (1) of this 
        subsection, the Government's share shall be an average 
        of the Government share applicable to any project in 
        each of the States.
  (d) Special Rule for Privately Owned Reliever Airports.--If a 
privately owned reliever airport contributes any lands, 
easements, or rights-of-way to carry out a project under this 
subchapter, the current fair market value of such lands, 
easements, or rights-of-way shall be credited toward the non-
Federal share of allowable project costs.
  (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. 47112. Carrying out airport development projects

  (a) Construction Work.--The Secretary of Transportation may 
inspect and approve construction work for an airport 
development project carried out under a grant agreement under 
this subchapter. The construction work must be carried out in 
compliance with regulations the Secretary prescribes. The 
regulations shall require the sponsor to make necessary cost 
and progress reports on the project. The regulations may amend 
or modify a contract related to the project only if the 
contract was made with actual notice of the regulations.
  (b) Prevailing Wages.--A contract for more than $2,000 
involving labor for an airport development project carried out 
under a grant agreement under this subchapter must require 
contractors to pay labor minimum wage rates as determined by 
the Secretary of Labor under sections 3141-3144, 3146, and 3147 
of title 40. The minimum rates must be included in the bids for 
the work and in the invitation for those bids.
  (c) Veterans' Preference.--(1) In this subsection--
          (A) ``disabled veteran'' has the same meaning given 
        that term in section 2108 of title 5.
          (B) ``Vietnam-era veteran'' means an individual who 
        served on active duty (as defined in section 101 of 
        title 38) in the armed forces for more than 180 
        consecutive days, any part of which occurred after 
        August 4, 1964, and before May 8, 1975, and who was 
        discharged or released from active duty in the armed 
        forces under honorable conditions.
          (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] Operation New Dawn, 
        Operation Inherent Resolve, Operation Freedom's 
        Sentinel, or any successor contingency operation to 
        such operations 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)] Operation New Dawn, 
        Operation Inherent Resolve, Operation Freedom's 
        Sentinel, or any successor contingency operation to 
        such operations (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.
  (2) A contract involving labor for carrying out an airport 
development project under a grant agreement under this 
subchapter must require that preference in the employment of 
labor (except in executive, administrative, and supervisory 
positions) be given to 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 when they are available and qualified for the 
employment.

           *       *       *       *       *       *       *

Sec. 47114. Apportionments

  (a) Definition.--In this section, ``amount subject to 
apportionment'' means the amount newly made available under 
section 48103 of this title for a fiscal year.
  (b) Apportionment Date.--On the first day of each fiscal 
year, the Secretary of Transportation shall apportion the 
amount subject to apportionment for that fiscal year as 
provided in this section.
  (c) Amounts Apportioned to Sponsors.--
          (1) Primary airports.--
                  (A) Apportionment.--The Secretary shall 
                apportion to the sponsor of each primary 
                airport for each fiscal year an amount equal 
                to--
                          (i) $7.80 for each of the first 
                        50,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (ii) $5.20 for each of the next 
                        50,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (iii) $2.60 for each of the next 
                        400,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (iv) $.65 for each of the next 
                        500,000 passenger boardings at the 
                        airport during the prior calendar year; 
                        and
                          (v) $.50 for each additional 
                        passenger boarding at the airport 
                        during the prior calendar year.
                  (B) Minimum and maximum apportionments.--Not 
                less than $650,000 nor more than $22,000,000 
                may be apportioned under subparagraph (A) of 
                this paragraph to an airport sponsor for a 
                primary airport for each fiscal year.
                  (C) Special rule.--In any fiscal year in 
                which the total amount made available under 
                section 48103 is $3,200,000,000 or more--
                          (i) the amount to be apportioned to a 
                        sponsor under subparagraph (A) shall be 
                        increased by doubling the amount that 
                        would otherwise be apportioned;
                          (ii) the minimum apportionment to a 
                        sponsor under subparagraph (B) shall be 
                        $1,000,000 rather than $650,000; and
                          (iii) the maximum apportionment to a 
                        sponsor under subparagraph (B) shall be 
                        $26,000,000 rather than $22,000,000.
                  (D) New airports.--Notwithstanding 
                subparagraph (A), the Secretary shall apportion 
                on the first day of the first fiscal year 
                following the official opening of a new airport 
                with scheduled passenger air transportation an 
                amount equal to the minimum amount set forth in 
                subparagraph (B) or (C), as appropriate, to the 
                sponsor of such airport.
                  (E) Use of previous fiscal year's 
                apportionment.--Notwithstanding subparagraph 
                (A), the Secretary may apportion to an airport 
                sponsor in a fiscal year an amount equal to the 
                amount apportioned to that sponsor in the 
                previous fiscal year if the Secretary finds 
                that--
                          (i) passenger boardings at the 
                        airport fell below 10,000 in the 
                        calendar year used to calculate the 
                        apportionment;
                          (ii) the airport had at least 10,000 
                        passenger boardings in the calendar 
                        year prior to the calendar year used to 
                        calculate apportionments to airport 
                        sponsors in a fiscal year; and
                          (iii) the cause of the shortfall in 
                        passenger boardings was a temporary but 
                        significant interruption in service by 
                        an air carrier to that airport due to 
                        an employment action, natural disaster, 
                        or other event unrelated to the demand 
                        for air transportation at the affected 
                        airport.
                  (F) Special rule for fiscal year 2017.--
                Notwithstanding subparagraph (A), the Secretary 
                shall apportion to a sponsor of an airport 
                under that subparagraph for fiscal year 2017 an 
                amount based on the number of passenger 
                boardings at the airport during calendar year 
                2012 if the airport--
                          (i) had 10,000 or more passenger 
                        boardings during calendar year 2012;
                          (ii) had fewer than 10,000 passenger 
                        boardings during the calendar year used 
                        to calculate the apportionment for 
                        fiscal year 2017 under subparagraph 
                        (A); and
                          (iii) had scheduled air service at 
                        any point during the calendar year used 
                        to calculate the apportionment for 
                        fiscal year 2017 under subparagraph 
                        (A).
  (2) Cargo airports.--
          (A) Apportionment.--Subject to subparagraph (D), the 
        Secretary shall apportion an amount equal to 3.5 
        percent of the amount subject to apportionment each 
        fiscal year to the sponsors of airports served by 
        aircraft providing air transportation of only cargo 
        with a total annual landed weight of more than 
        100,000,000 pounds.
          (B) Suballocation formula.--Any funds apportioned 
        under subparagraph (A) to sponsors of airports 
        described in subparagraph (A) shall be allocated among 
        those airports in the proportion that the total annual 
        landed weight of aircraft described in subparagraph (A) 
        landing at each of those airports bears to the total 
        annual landed weight of those aircraft landing at all 
        those airports.
          (C) Limitation.--In any fiscal year in which the 
        total amount made available under section 48103 is less 
        than $3,200,000,000, not more than 8 percent of the 
        amount apportioned under subparagraph (A) may be 
        apportioned for any one airport.
          (D) Distribution to other airports.--Before 
        apportioning amounts to the sponsors of airports under 
        subparagraph (A) for a fiscal year, the Secretary may 
        set-aside a portion of such amounts for distribution to 
        the sponsors of other airports, selected by the 
        Secretary, that the Secretary finds will be served 
        primarily by aircraft providing air transportation of 
        only cargo.
          (E) Determination of landed weight.--Landed weight 
        under this paragraph is the landed weight of aircraft 
        landing at each airport described in subparagraph (A) 
        during the prior calendar year.
  (d) Amounts Apportioned for General Aviation Airports.--
          (1) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Area.--The term ``area'' includes land 
                and water.
                  (B) Population.--The term ``population'' 
                means the population stated in the latest 
                decennial census of the United States.
          (2) Apportionment.--Except as provided in paragraph 
        (3), the Secretary shall apportion to the States 18.5 
        percent of the amount subject to apportionment for each 
        fiscal year as follows:
                  (A) 0.66 percent of the apportioned amount to 
                Guam, American Samoa, the Northern Mariana 
                Islands, and the Virgin Islands.
                  (B) Except as provided in paragraph (4), 
                49.67 percent of the apportioned amount for 
                airports, excluding primary airports but 
                including reliever and nonprimary commercial 
                service airports, in States not named in 
                subparagraph (A) in the proportion that the 
                population of each of those States bears to the 
                total population of all of those States.
                  (C) Except as provided in paragraph (4), 
                49.67 percent of the apportioned amount for 
                airports, excluding primary airports but 
                including reliever and nonprimary commercial 
                service airports, in States not named in 
                subparagraph (A) in the proportion that the 
                area of each of those States bears to the total 
                area of all of those States.
          (3) Special rule.--In any fiscal year in which the 
        total amount made available under section 48103 is 
        $3,200,000,000 or more, rather than making an 
        apportionment under paragraph (2), the Secretary shall 
        apportion 20 percent of the amount subject to 
        apportionment for each fiscal year as follows:
                  (A) To each airport, excluding primary 
                airports but including reliever and nonprimary 
                commercial service airports, in States the 
                lesser of--
                          (i) $150,000; or
                          (ii) 1/5 of the most recently 
                        published estimate of the 5-year costs 
                        for airport improvement for the 
                        airport, as listed in the national plan 
                        of integrated airport systems developed 
                        by the Federal Aviation Administration 
                        under section 47103.
                  (B) Any remaining amount to States as 
                follows:
                          (i) 0.62 percent of the remaining 
                        amount to Guam, American Samoa, the 
                        Commonwealth of the Northern Mariana 
                        Islands, and the Virgin Islands.
                          (ii) Except as provided in paragraph 
                        (4), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the population of 
                        each of those States bears to the total 
                        population of all of those States.
                          (iii) Except as provided in paragraph 
                        (4), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the area of each of 
                        those States bears to the total area of 
                        all of those States.
                  (C) During fiscal years 2018 through 2020--
                          (i) an airport that accrued 
                        apportionment funds under subparagraph 
                        (A) in fiscal year 2013 that is listed 
                        as having an unclassified status under 
                        the most recent national plan of 
                        integrated airport systems shall 
                        continue to accrue apportionment funds 
                        under subparagraph (A) at the same 
                        amount the airport accrued 
                        apportionment funds in fiscal year 
                        2013, subject to the conditions of this 
                        paragraph;
                          (ii) notwithstanding the period of 
                        availability as described in section 
                        47117(b), an amount apportioned to an 
                        airport under clause (i) shall be 
                        available to the airport only during 
                        the fiscal year in which the amount is 
                        apportioned; and
                          (iii) notwithstanding the waiver 
                        permitted under section 47117(c)(2), an 
                        airport receiving apportionment funds 
                        under clause (i) may not waive its 
                        claim to any part of the apportioned 
                        funds in order to make the funds 
                        available for a grant for another 
                        public-use airport.
                  (D) An airport that re-establishes its 
                classified status shall be eligible to accrue 
                apportionment funds pursuant to subparagraph 
                (A) so long as such airport retains its 
                classified status.
          (4) Airports in Alaska, Puerto Rico, and Hawaii.--An 
        amount apportioned under paragraph (2) or (3) to 
        Alaska, Puerto Rico, or Hawaii for airports in such 
        State may be made available by the Secretary for any 
        public airport in those respective jurisdictions.
          (5) Use of state highway specifications.--
                  (A) In general.--The Secretary may permit the 
                use of State highway specifications for 
                airfield pavement construction using funds made 
                available under this subsection at nonprimary 
                airports with runways of 5,000 feet or shorter 
                serving aircraft that do not exceed 60,000 
                pounds gross weight if the Secretary determines 
                that--
                          (i) safety will not be negatively 
                        affected; and
                          (ii) the life of the pavement will 
                        not be shorter than it would be if 
                        constructed using Administration 
                        standards.
                  (B) Limitation.--An airport may not seek 
                funds under this subchapter for runway 
                rehabilitation or reconstruction of any such 
                airfield pavement constructed using State 
                highway specifications for a period of 10 years 
                after construction is completed unless the 
                Secretary determines that the rehabilitation or 
                reconstruction is required for safety reasons.
          (6) Integrated airport system planning.--
        Notwithstanding any other provision of this subsection, 
        funds made available under this subsection may be used 
        for integrated airport system planning that encompasses 
        one or more primary airports.
          (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.
  (e) Supplemental Apportionment for Alaska.--
          (1) In general.--Notwithstanding subsections (c) and 
        (d) of this section, the Secretary may apportion 
        amounts for airports in Alaska in the way in which 
        amounts were apportioned in the fiscal year ending 
        September 30, 1980, under section 15(a) of the Act. 
        However, in apportioning amounts for a fiscal year 
        under this subsection, the Secretary shall apportion--
                  (A) for each primary airport at least as much 
                as would be apportioned for the airport under 
                subsection (c)(1) of this section; and
                  (B) a total amount at least equal to the 
                minimum amount required to be apportioned to 
                airports in Alaska in the fiscal year ending 
                September 30, 1980, under section 15(a)(3)(A) 
                of the Act.
          (2) Authority for discretionary grants.--This 
        subsection does not prohibit the Secretary from making 
        project grants for airports in Alaska from the 
        discretionary fund under section 47115 of this title.
          (3) Airports eligible for funds.--An amount 
        apportioned under this subsection may be used for any 
        public airport in Alaska.
          (4) Special rule.--In any fiscal year in which the 
        total amount made available under section 48103 is 
        $3,200,000,000 or more, the amount that may be 
        apportioned for airports in Alaska under paragraph (1) 
        shall be increased by doubling the amount that would 
        otherwise be apportioned.
  (f) Reducing Apportionments.--
          (1) In general.--Subject to paragraph (3), an amount 
        that would be apportioned under this section (except 
        subsection (c)(2) in a fiscal year to the sponsor of an 
        airport having at least .25 percent of the total number 
        of boardings each year in the United States and for 
        which a charge is imposed in the fiscal year under 
        section 40117 of this title shall be reduced by an 
        amount equal to--
                  (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.
          (2) Effective date of reduction.--A reduction in an 
        apportionment required by paragraph (1) shall not take 
        effect until the first fiscal year following the year 
        in which the collection of the charge imposed under 
        section 40117 is begun.
          (3) Special rule for transitioning airports.--
                  (A) In general.--Beginning with the fiscal 
                year following the first calendar year in which 
                the sponsor of an airport has more than .25 
                percent of the total number of boardings in the 
                United States, the sum of the amount that would 
                be apportioned under this section after 
                application of paragraph (1) in a fiscal year 
                to such sponsor and the projected revenues to 
                be derived from the charge in such fiscal year 
                shall not be less than the sum of the 
                apportionment to such airport for the preceding 
                fiscal year and the revenues derived from such 
                charge in the preceding fiscal year.
                  (B) Effective period.--Subparagraph (A) shall 
                be in effect for fiscal year 2004.
  (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. 47115. Discretionary fund

  (a) Existence and Amounts in Fund.--The Secretary of 
Transportation has a discretionary fund. The fund consists of--
          (1) amounts subject to apportionment for a fiscal 
        year that are not apportioned under section 47114(c)-
        (e) of this title; and
          (2) 12.5 percent of amounts not apportioned under 
        section 47114 of this title because of section 
        47114(f).
  (b) Availability of Amounts.--Subject to subsection (c) of 
this section and section 47117(e) of this title, the fund is 
available for making grants for any purpose for which amounts 
are made available under section 48103 of this title that the 
Secretary considers most appropriate to carry out this 
subchapter.
  (c) Minimum Percentage for Primary and Reliever Airports.--At 
least 75 percent of the amount in the fund and distributed by 
the Secretary in a fiscal year shall be used for making 
grants--
          (1) to preserve and enhance capacity, safety, and 
        security at primary and reliever airports; and
          (2) to carry out airport noise compatibility planning 
        and programs at primary and reliever airports.
  (d) Considerations.--
          (1) For capacity enhancement projects.--In selecting 
        a project for a grant to preserve and improve capacity 
        funded in whole or in part from the fund, the Secretary 
        shall consider--
                  (A) the effect that the project will have on 
                overall national transportation system 
                capacity;
                  (B) the benefit and cost of the project, 
                including, in the case of a project at a 
                reliever airport, the number of operations 
                projected to be diverted from a primary airport 
                to the reliever airport as a result of the 
                project, as well as the cost savings projected 
                to be realized by users of the local airport 
                system;
                  (C) the financial commitment from non-United 
                States Government sources to preserve or 
                improve airport capacity;
                  (D) the airport improvement priorities of the 
                States to the extent such priorities are not in 
                conflict with subparagraphs (A) and (B);
                  (E) the projected growth in the number of 
                passengers or aircraft that will be using the 
                airport at which the project will be carried 
                out; and
                  (F) the ability of the project to foster 
                United States competitiveness in securing 
                global air cargo activity at a United States 
                airport.
          (2) For all projects.--In selecting a project for a 
        grant under this section, the Secretary shall consider 
        among other factors whether--
                  (A) funding has been provided for all other 
                projects qualifying for funding during the 
                fiscal year under this chapter that have 
                attained a higher score under the numerical 
                priority system employed by the Secretary in 
                administering the fund; and
                  (B) the sponsor will be able to commence the 
                work identified in the project application in 
                the fiscal year in which the grant is made or 
                within 6 months after the grant is made, 
                whichever is later.
  (e) Waiving Percentage Requirement.--If the Secretary decides 
the Secretary cannot comply with the percentage requirement of 
subsection (c) of this section in a fiscal year because there 
are insufficient qualified grant applications to meet that 
percentage, the amount the Secretary determines will not be 
distributed as required by subsection (c) is available for 
obligation during the fiscal year without regard to the 
requirement.
  (f) Consideration of Diversion of Revenues in Awarding 
Discretionary Grants.--
          (1) General rule.--Subject to paragraph (2), in 
        deciding whether or not to distribute funds to an 
        airport from the discretionary funds established by 
        subsection (a) of this section and section 47116 of 
        this title, the Secretary shall consider as a factor 
        militating against the distribution of such funds to 
        the airport the fact that the airport is using revenues 
        generated by the airport or by local taxes on aviation 
        fuel for purposes other than capital or operating costs 
        of the airport or the local airports system or other 
        local facilities which are owned or operated by the 
        owner or operator of the airport and directly and 
        substantially related to the actual air transportation 
        of passengers or property.
          (2) Required finding.--Paragraph (1) shall apply only 
        when the Secretary finds that the amount of revenues 
        used by the airport for purposes other than capital or 
        operating costs in the airport's fiscal year preceding 
        the date of the application for discretionary funds 
        exceeds the amount of such revenues in the airport's 
        first fiscal year ending after August 23, 1994, 
        adjusted by the Secretary for changes in the Consumer 
        Price Index of All Urban Consumers published by the 
        Bureau of Labor Statistics of the Department of Labor.
  (g) Minimum Amount To Be Credited.--
          (1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available 
        under section 48103 of this title, an amount that is at 
        least equal to the sum of--
                  (A) $148,000,000; plus
                  (B) the total amount required from the fund 
                to carry out in the fiscal year letters of 
                intent issued before January 1, 1996, under 
                section 47110(e) of this title or the Airport 
                and Airway Improvement Act of 1982.
        The amount credited is exclusive of amounts that have 
        been apportioned in a prior fiscal year under section 
        47114 of this title and that remain available for 
        obligation.
          (2) Reduction of apportionments.--In a fiscal year in 
        which the amount credited under subsection (a) is less 
        than the minimum amount to be credited under paragraph 
        (1), the total amount calculated under paragraph (3) 
        shall be reduced by an amount that, when credited to 
        the fund, together with the amount credited under 
        subsection (a), equals such minimum amount.
          (3) Amount of reduction.--For a fiscal year, the 
        total amount available to make a reduction to carry out 
        paragraph (2) is the total of the amounts determined 
        under sections 47114(c)(1)(A), 47114(c)(2), 47114(d), 
        and 47117(e) of this title. Each amount shall be 
        reduced by an equal percentage to achieve the 
        reduction.
  (h) Priority for Letters of Intent.--In making grants in a 
fiscal year with funds made available under this section, the 
Secretary shall fulfill intentions to obligate under section 
47110(e).
  [(i) Considerations for Project Under Expanded Security 
Eligibility.--In order to assure that funding under this 
subchapter is provided to the greatest needs, the Secretary, in 
selecting a project described in section 47102(3)(J) for a 
grant, shall consider the non-federal resources available to 
sponsor, the use of such non-federal resources, and the degree 
to which the sponsor is providing increased funding for the 
project.]
  [(j)] (i) Marshall Islands, Micronesia, and Palau.--For 
[fiscal years 2012 through 2017] fiscal years 2017 through 2023 
, the sponsors of airports located in the Republic of the 
Marshall Islands, Federated States of Micronesia, and Republic 
of Palau shall be eligible for grants under this section and 
section 47116.

           *       *       *       *       *       *       *

Sec. 47117. Use of apportioned amounts

  (a) Grant Purpose.--Except as provided in this section, an 
amount apportioned under section 47114(c)(1) or (d)(2) of this 
title is available for making grants for any purpose for which 
amounts are made available under section 48103 of this title.
  (b) Period of Availability.--An amount apportioned under 
section 47114 of this title is available to be obligated for 
grants under the apportionment only during the fiscal year for 
which the amount was apportioned and the 2 fiscal years 
immediately after that year or the 3 fiscal years immediately 
following that year in the case of a nonhub airport or any 
airport that is not a commercial service airport. If the amount 
is not obligated under the apportionment within that time, it 
shall be added to the discretionary fund.
  (c) Primary Airports.--(1) An amount apportioned to a sponsor 
of a primary airport under section 47114(c)(1) of this title is 
available for grants for any public-use airport of the sponsor 
included in the national plan of integrated airport systems.
  (2) Waiver.--A sponsor of an airport may make an agreement 
with the Secretary of Transportation waiving the sponsor's 
claim to any part of the amount apportioned for the airport 
under sections 47114(c) and 47114(d)(3)(A) if the Secretary 
agrees to make the waived amount available for a grant for 
another public-use airport in the same State or geographical 
area as the airport, as determined by the Secretary.
  (d) State Use.--An amount apportioned to a State under--
          (1) section 47114(d)(2)(A) of this title is available 
        for grants for airports located in the State; and
          (2) section 47114(d)(2)(B) or (C) of this title is 
        available for grants for airports described in section 
        47114(d)(2)(B) or (C) and located in the State.
  (e) Special Apportionment Categories.--(1) The Secretary 
shall use amounts available to the discretionary fund under 
section 47115 of this title for each fiscal year as follows:
          (A) At least 35 percent, but not more than 
        $300,000,000, for grants for airport noise 
        compatibility planning under section 47505(a)(2), for 
        carrying out noise compatibility programs under section 
        47504(c), for noise mitigation projects approved in an 
        environmental record of decision for an airport 
        development project under this title, for compatible 
        land use planning and projects carried out by State and 
        local governments under section 47141, for airport 
        development described in section 47102(3)(P), for 
        airport development described in section 47102(3)(F), 
        47102(3)(K), or 47102(3)(L) to comply with the Clean 
        Air Act (42 U.S.C. 7401 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. The Secretary may 
        count the amount of grants made for such planning and 
        programs with funds apportioned under section 47114 in 
        that fiscal year in determining whether or not the 
        requirements of the preceding sentence are being met in 
        that fiscal year.
          (B) at least 4 percent to sponsors of current or 
        former military airports designated by the Secretary 
        under section 47118(a) of this title for grants for 
        developing current and former military airports to 
        improve the capacity of the national air transportation 
        system and to sponsors of noncommercial service 
        airports for grants for operational and maintenance 
        expenses at any such airport if the amount of such 
        grants to the sponsor of the airport does not exceed 
        $30,000 in that fiscal year, if the Secretary 
        determines that the airport is adversely affected by 
        the closure or realignment of a military base, and if 
        the sponsor of the airport certifies that the airport 
        would otherwise close if the airport does not receive 
        the grant.
          (C) In any fiscal year in which the total amount made 
        available under section 48103 is $3,200,000,000 or 
        more, at least two-thirds of 1 percent for grants to 
        sponsors of reliever airports which have--
                  (i) more than 75,000 annual operations;
                  (ii) a runway with a minimum usable landing 
                distance of 5,000 feet;
                  (iii) a precision instrument landing 
                procedure;
                  (iv) a minimum number of aircraft, to be 
                determined by the Secretary, based at the 
                airport; and
                  (v) been designated by the Secretary as a 
                reliever airport to an airport with 20,000 
                hours of annual delays in commercial passenger 
                aircraft takeoffs and landings.
  (2) If the Secretary decides that an amount required to be 
used for grants under paragraph (1) of this subsection cannot 
be used for a fiscal year because there are insufficient 
qualified grant applications, the amount the Secretary 
determines cannot be used is available during the fiscal year 
for grants for other airports or for other purposes for which 
amounts are authorized for grants under section 48103 of this 
title.
  (3) Priority.--The Secretary shall give priority in making 
grants under paragraph (1)(A) to applications for airport noise 
compatibility planning and programs at and around--
          (A) Chicago O'Hare International Airport;
          (B) LaGuardia Airport;
          (C) John F. Kennedy International Airport; and
          (D) Ronald Reagan Washington National Airport.
  (f) Discretionary Use of Apportionments.--
          (1) In general.--Subject to paragraph (2), if the 
        Secretary finds that all or part of an amount of an 
        apportionment under section 47114 is not required 
        during a fiscal year to fund a grant for which the 
        apportionment may be used, the Secretary may use during 
        such fiscal year the amount not so required to make 
        grants for any purpose for which grants may be made 
        under section 48103. The finding may be based on the 
        notifications that the Secretary receives under section 
        47105(f) or on other information received from airport 
        sponsors.
          (2) Restoration of apportionments.--
                  (A) In general.--If the fiscal year for which 
                a finding is made under paragraph (1) with 
                respect to an apportionment is not the last 
                fiscal year of availability of the 
                apportionment under subsection (b), the 
                Secretary shall restore to the apportionment an 
                amount equal to the amount of the apportionment 
                used under paragraph (1) for a discretionary 
                grant whenever a sufficient amount is made 
                available under section 48103.
                  (B) Period of availability.--If restoration 
                under this paragraph is made in the fiscal year 
                for which the finding is made or the succeeding 
                fiscal year, the amount restored shall be 
                subject to the original period of availability 
                of the apportionment under subsection (b). If 
                the restoration is made thereafter, the amount 
                restored shall remain available in accordance 
                with subsection (b) for the original period of 
                availability of the apportionment plus the 
                number of fiscal years during which a 
                sufficient amount was not available for the 
                restoration.
          (3) Newly available amounts.--
                  (A) Restored amounts to be unavailable for 
                discretionary grants.--Of an amount newly 
                available under section 48103 of this title, an 
                amount equal to the amounts restored under 
                paragraph (2) shall not be available for 
                discretionary grant obligations under section 
                47115.
                  (B) Use of remaining amounts.--Subparagraph 
                (A) does not impair the Secretary's authority 
                under paragraph (1), after a restoration under 
                paragraph (2), to apply all or part of a 
                restored amount that is not required to fund a 
                grant under an apportionment to fund 
                discretionary grants.
          (4) Limitations on obligations apply.--Nothing in 
        this subsection shall be construed to authorize the 
        Secretary to incur grant obligations under section 
        47104 for a fiscal year in an amount greater than the 
        amount made available under section 48103 for such 
        obligations for such fiscal year.
  (g) Limiting Authority of Secretary.--The authority of the 
Secretary to make grants during a fiscal year from amounts that 
were apportioned for a prior fiscal year and remain available 
for approved airport development project grants under 
subsection (b) of this section may be impaired only by a law 
enacted after September 3, 1982, that expressly limits that 
authority.

           *       *       *       *       *       *       *

Sec. 47119. Terminal development costs

  (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) Lactation areas.--In addition to the projects 
        described in paragraph (1), the Secretary may approve a 
        project for terminal development for the construction 
        or installation of a lactation area at a commercial 
        service airport.
  (b) Repaying Borrowed Money.--
  (1) Terminal development costs incurred after June 30, 1970, 
and before July 12, 1976.--An amount apportioned under section 
47114 and made available to the sponsor of a commercial service 
airport at which terminal development was carried out after 
June 30, 1970, and before July 12, 1976, is available to repay 
immediately money borrowed and used to pay the costs for such 
terminal development if those costs would be allowable project 
costs under section 47110(d) if they had been incurred after 
September 3, 1982.
  (2) Terminal development costs incurred between January 1, 
1992, and October 31, 1992.--An amount apportioned under 
section 47114 and made available to the sponsor of a nonhub 
airport at which terminal development was carried out between 
January 1, 1992, and October 31, 1992, is available to repay 
immediately money borrowed and to pay the costs for such 
terminal development if those costs would be allowable project 
costs under section 47110(d).
  (3) Terminal development costs at primary airports.--An 
amount apportioned under section 47114 or available under 
subsection (b)(3) to a primary airport--
          (A) that was a nonhub airport in the most recent year 
        used to calculate apportionments under section 47114;
          (B) that is a designated airport under section 47118 
        in fiscal year 2003; and
          (C) at which terminal development is carried out 
        between January 2003 and August 2004,
is available to repay immediately money borrowed and used to 
pay the costs for such terminal development if those costs 
would be allowable project costs under subsection (a).
  (4) Conditions for grant.--An amount is available for a grant 
under this subsection only if--
          (A) the sponsor submits the certification required 
        under subsection (a);
          (B) the Secretary decides that using the amount to 
        repay the borrowed money will not defer an airport 
        development project outside the terminal area at that 
        airport; and
          (C) amounts available for airport development under 
        this subchapter will not be used for additional 
        terminal development projects at the airport for at 
        least 1 year beginning on the date the grant is used to 
        repay the borrowed money.
  (5) Applicability of certain limitations.--A grant under this 
subsection shall be subject to the limitations in subsections 
(c)(1) and (c)(2).
  (c) Availability of Amounts.--In a fiscal year, the Secretary 
may make available--
          (1) to a sponsor of a primary airport, any part of 
        amounts apportioned to the sponsor for the fiscal year 
        under section 47114(c)(1) of this title to pay project 
        costs allowable under subsection (a);
          (2) on approval of the Secretary, not more than 
        $200,000 of the amount that may be distributed for the 
        fiscal year from the discretionary fund established 
        under section 47115 of this title--
                  (A) to a sponsor of a nonprimary commercial 
                service airport to pay project costs allowable 
                under subsection (a); and
                  (B) to a sponsor of a reliever airport for 
                the types of project costs allowable under 
                subsection (a), including project costs 
                allowable for a commercial service airport that 
                each year does not have more than .05 percent 
                of the total boardings in the United States;
          (3) for use by a primary airport that each year does 
        not have more than .05 percent of the total boardings 
        in the United States, any part of amounts that may be 
        distributed for the fiscal year from the discretionary 
        fund and small airport fund to pay project costs 
        allowable under subsection (a);
          (4) not more than $25,000,000 to pay project costs 
        allowable for the fiscal year under subsection (a) for 
        projects at commercial service airports that were not 
        eligible for assistance for terminal development during 
        the fiscal year ending September 30, 1980, under 
        section 20(b) of the Airport and Airway Development Act 
        of 1970; or
          (5) to a sponsor of a nonprimary airport, any part of 
        amounts apportioned to the sponsor for the fiscal year 
        under section 47114(d)(3)(A) for project costs 
        allowable under subsection (a).
  (d) Nonhub Airports.--With respect to a project at a 
commercial service airport which annually has less than 0.05 
percent of the total enplanements in the United States, the 
Secretary may approve the use of the amounts described in 
subsection (a) notwithstanding the requirements of sections 
47107(a)(17), 47112, and 47113.
  (e) Determination of Passenger Boarding at Commercial Service 
Airports.--For the purpose of determining whether an amount may 
be distributed for a fiscal year from the discretionary fund in 
accordance with subsection (b)(2)(A) to a commercial service 
airport, the Secretary shall make the determination of whether 
or not a public airport is a commercial service airport on the 
basis of the number of passenger boardings and type of air 
service at the public airport in the calendar year that 
includes the first day of such fiscal year or the preceding 
calendar year, whichever is more beneficial to the airport.
  (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).

           *       *       *       *       *       *       *

Sec. 47123. Nondiscrimination

   [The Secretary of Transportation] (a)  In General._ The 
Secretary of Transportation shall take affirmative action to 
ensure that an individual is not excluded because of race, 
creed, color, national origin, or sex from participating in an 
activity carried out with money received under a grant under 
this subchapter. The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations shall be 
similar to those in effect under title VI of the Civil Rights 
Act of 1964 (42 U.S.C. 2000d et seq.). This section is in 
addition to title VI of the Act.
  (b) Indian Employment.--
          (1) Tribal sponsor preference.--Consistent with 
        section 703(i) of the Civil Rights Act of 1964 (42 
        U.S.C. 2000e-2(i)), nothing in this section shall 
        preclude the preferential employment of Indians living 
        on or near a reservation on a project or contract at--
                  (A) an airport sponsored by an Indian tribal 
                government; or
                  (B) an airport located on an Indian 
                reservation.
          (2) State preference.--A State may implement a 
        preference for employment of Indians on a project 
        carried out under this subchapter near an Indian 
        reservation.
          (3) Implementation.--The Secretary shall cooperate 
        with Indian tribal governments and the States to 
        implement this subsection.
          (4) Indian tribal government defined.--In this 
        section, the term ``Indian tribal government'' has the 
        same meaning given that term in section 102 of the 
        Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5122).

Sec. 47124. Agreements for State and local operation of airport 
                    facilities

  (a) Government Relief From Liability.--The Secretary of 
Transportation shall ensure that an agreement under this 
subchapter with a qualified entity (as determined by the 
Secretary), State, or a political subdivision of a State to 
allow the entity, State, or subdivision to operate an airport 
facility relieves the United States Government from any 
liability arising out of, or related to, acts or omissions of 
employees of the entity, State, or subdivision in operating the 
airport facility.
  (b) Air Traffic Control Contract Program.--
          (1) Contract tower program.--
                  (A) Continuation.--The Secretary shall 
                continue the low activity (Visual Flight Rules) 
                level I air traffic control tower contract 
                program established under subsection (a) of 
                this section for towers existing on December 
                30, 1987, and extend the program to other 
                towers as practicable.
                  (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] 
                exceeds the benefit--
                          (i) for the 1-year period after such 
                        determination is made; or
                          (ii) if an appeal of such 
                        determination is requested, for the 1-
                        year period described in subsection 
                        (d)(4)(D).
                  (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).
  (2) General authority.--The Secretary may make a contract 
with a qualified entity (as determined by the Secretary) or, on 
a sole source basis, with a State or a political subdivision of 
a State to allow the entity, State, or subdivision to operate 
an airport traffic control tower classified as a level I 
(Visual Flight Rules) tower if the Secretary decides that the 
entity, State, or subdivision has the capability to comply with 
the requirements of this paragraph. The contract shall require 
that the entity, State, or subdivision comply with applicable 
safety regulations in operating the facility and with 
applicable competition requirements in making a subcontract to 
perform work to carry out the contract.
  (3) Contract air traffic control tower program.--
          (A) In general.--The Secretary shall establish a 
        program to contract for air traffic control services at 
        nonapproach control towers, as defined by the 
        Secretary, that do not qualify for the contract tower 
        program established under subsection (a) and continued 
        under paragraph (1) (in this paragraph referred to as 
        the ``Contract Tower Program'').
          (B) Program components.--In carrying out the program, 
        the Secretary shall--
                  (i) utilize for purposes of cost-benefit 
                analyses, current, actual, site-specific data, 
                forecast estimates, or airport master plan data 
                provided by a facility owner or operator and 
                verified by the Secretary; and
                  (ii) approve for participation only 
                facilities willing to fund a pro rata share of 
                the operating costs of the air traffic control 
                tower to achieve a 1-to-1 benefit-to-cost ratio 
                using actual site-specific contract tower 
                operating costs in any case in which there is 
                an operating air traffic control tower, as 
                required for eligibility under the Contract 
                Tower Program.
          (C) Priority.--In selecting facilities to participate 
        in the program, the Secretary shall give priority to 
        the following facilities:
                  (i) Air traffic control towers that are 
                participating in the Contract Tower Program but 
                have been notified that they will be terminated 
                from such program because the Secretary has 
                determined that the benefit-to-cost ratio for 
                their continuation in such program is less than 
                1.0.
                  (ii) Air traffic control towers that the 
                Secretary determines have a benefit-to-cost 
                ratio of at least .50.
                  (iii) Air traffic control towers of the 
                Federal Aviation Administration that are closed 
                as a result of the air traffic controllers 
                strike in 1981.
                  (iv) Air traffic control towers located at 
                airports or points at which an air carrier is 
                receiving compensation under the essential air 
                service program under this chapter.
                  (v) Air traffic control towers located at 
                airports that are prepared to assume partial 
                responsibility for maintenance costs.
                  (vi) Air traffic control towers located at 
                airports with safety or operational problems 
                related to topography, weather, runway 
                configuration, or mix of aircraft.
                  (vii) Air traffic control towers located at 
                an airport at which the community has been 
                operating the tower at its own expense.
          (D) Costs exceeding benefits.--If the costs of 
        operating an air traffic tower under the program exceed 
        the benefits, the airport sponsor or State or local 
        government having jurisdiction over the airport shall 
        pay the portion of the costs that exceed such benefit, 
        with the maximum allowable local cost share capped at 
        20 percent.
          [(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 2017 may be used to 
        carry out this paragraph.]
          (E) Funding.--Amounts appropriated pursuant to 
        section 106(k)(1) 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).
          (G) Benefit-to-cost calculation.--Not later than 90 
        days after receiving an application to the Contract 
        Tower Program, the Secretary shall calculate a benefit-
        to-cost ratio (as described in subsection (d)) for the 
        applicable air traffic control tower for purposes of 
        selecting towers for participation in the Contract 
        Tower Program.
  (4) Construction of air traffic control towers.--
          (A) Grants.--The Secretary may provide grants to a 
        sponsor of--
                  (i) a primary airport--
                          (I) from amounts made available under 
                        sections 47114(c)(1) and 47114(c)(2) 
                        for the construction or improvement of 
                        a nonapproach control tower, as defined 
                        by the Secretary, and for the 
                        acquisition and installation of air 
                        traffic control, communications, and 
                        related equipment to be used in that 
                        tower;
                          (II) from amounts made available 
                        under sections 47114(c)(1) and 
                        47114(c)(2) for reimbursement for the 
                        cost of construction or improvement of 
                        a nonapproach control tower, as defined 
                        by the Secretary, incurred after 
                        October 1, 1996, if the sponsor 
                        complied with the requirements of 
                        sections 47107(e), 47112(b), and 
                        47112(c) in constructing or improving 
                        that tower; and
                          (III) from amounts made available 
                        under sections 47114(c)(1) and 
                        47114(c)(2) for reimbursement for the 
                        cost of acquiring and installing in 
                        that tower air traffic control, 
                        communications, and related equipment 
                        that was acquired or installed after 
                        October 1, 1996, including remote air 
                        traffic control tower equipment 
                        certified by the Federal Aviation 
                        Administration ; and
                  (ii) a public-use airport that is not a 
                primary airport--
                          (I) from amounts made available under 
                        sections 47114(c)(2) and 47114(d) for 
                        the construction or improvement of a 
                        nonapproach control tower, as defined 
                        by the Secretary, and for the 
                        acquisition and installation of air 
                        traffic control, communications, and 
                        related equipment to be used in that 
                        tower;
                          (II) from amounts made available 
                        under sections 47114(c)(2) and 
                        47114(d)(3)(A) for reimbursement for 
                        the cost of construction or improvement 
                        of a nonapproach control tower, as 
                        defined by the Secretary, incurred 
                        after October 1, 1996, if the sponsor 
                        complied with the requirements of 
                        sections 47107(e), 47112(b), and 
                        47112(c) in constructing or improving 
                        that tower; and
                          (III) from amounts made available 
                        under sections 47114(c)(2) and 
                        47114(d)(3)(A) for reimbursement for 
                        the cost of acquiring and installing in 
                        that tower air traffic control, 
                        communications, and related equipment 
                        that was acquired or installed after 
                        October 1, 1996, including remote air 
                        traffic control tower equipment 
                        certified by the Federal Aviation 
                        Administration .
          [(B) Eligibility.--An airport sponsor shall be 
        eligible for a grant under this paragraph only if--
                  [(i)(I) the sponsor is a participant in the 
                Federal Aviation Administration contract tower 
                program established under subsection (a) and 
                continued under paragraph (1) or the pilot 
                program established under paragraph (3); or
                  [(II) construction of a nonapproach control 
                tower would qualify the sponsor to be eligible 
                to participate in such program;
                  [(ii) the sponsor certifies that it will pay 
                not less than 10 percent of the cost of the 
                activities for which the sponsor is receiving 
                assistance under this paragraph;
                  [(iii) the Secretary affirmatively accepts 
                the proposed contract tower into a contract 
                tower program under this section and certifies 
                that the Secretary will seek future 
                appropriations to pay the Federal Aviation 
                Administration's cost of the contract to 
                operate the tower to be constructed under this 
                paragraph;
                  [(iv) the sponsor certifies that it will pay 
                its share of the cost of the contract to 
                operate the tower to be constructed under this 
                paragraph; and
                  [(v) in the case of a tower to be constructed 
                under this paragraph from amounts made 
                available under section 47114(d)(2) or 
                47114(d)(3)(B), the Secretary certifies that--
                          [(I) the Federal Aviation 
                        Administration has consulted the State 
                        within the borders of which the tower 
                        is to be constructed and the State 
                        supports the construction of the tower 
                        as part of its State airport capital 
                        plan; and
                          [(II) the selection of the tower for 
                        funding is based on objective criteria.
          [(C) Limitation on Federal share.--The Federal share 
        of the cost of construction of a nonapproach control 
        tower under this paragraph may not exceed $2,000,000.]
          (B) Eligibility.--
                  (i) Before date of transfer.--Before the date 
                of transfer (as defined in section 90101(a)), 
                an airport sponsor shall be eligible for a 
                grant under this paragraph only if--
                          (I)(aa) the sponsor is a participant 
                        in the Federal Aviation Administration 
                        contract tower program established 
                        under subsection (a) and continued 
                        under paragraph (1) or the pilot 
                        program established under paragraph 
                        (3); or
                                  (bb) construction of a 
                                nonapproach control tower would 
                                qualify the sponsor to be 
                                eligible to participate in such 
                                program;
                          (II) the sponsor certifies that it 
                        will pay not less than 10 percent of 
                        the cost of the activities for which 
                        the sponsor is receiving assistance 
                        under this paragraph;
                          (III) the Secretary affirmatively 
                        accepts the proposed contract tower 
                        into a contract tower program under 
                        this section and certifies that the 
                        Secretary will seek future 
                        appropriations to pay the Federal 
                        Aviation Administration's cost of the 
                        contract to operate the tower to be 
                        constructed under this paragraph;
                          (IV) the sponsor certifies that it 
                        will pay its share of the cost of the 
                        contract to operate the tower to be 
                        constructed under this paragraph; and
                          (V) in the case of a tower to be 
                        constructed under this paragraph from 
                        amounts made available under section 
                        47114(d)(2) or 47114(d)(3)(B), the 
                        Secretary certifies that--
                                  (aa) the Federal Aviation 
                                Administration has consulted 
                                the State within the borders of 
                                which the tower is to be 
                                constructed and the State 
                                supports the construction of 
                                the tower as part of its State 
                                airport capital plan; and
                                  (bb) the selection of the 
                                tower for funding is based on 
                                objective criteria.
                  (ii) On and after date of transfer.--On and 
                after the date of transfer (as defined in 
                section 90101(a)), an airport sponsor shall be 
                eligible for a grant under this paragraph only 
                if--
                          (I) the Secretary determines that the 
                        tower to be constructed at the 
                        sponsor's airport using the amounts of 
                        the grant will be operated pursuant to 
                        an agreement entered into by the 
                        American Air Navigation Services 
                        Corporation and an entity pursuant to 
                        section 90302(c)(3);
                          (II) the sponsor certifies that it 
                        will pay not less than 10 percent of 
                        the cost of the activities for which 
                        the sponsor is receiving assistance 
                        under this paragraph; and
                          (III) in the case of a tower to be 
                        constructed under this paragraph from 
                        amounts made available under section 
                        47114(d)(2) or 47114(d)(3)(B), the 
                        Secretary certifies that--
                                  (aa) the Federal Aviation 
                                Administration has consulted 
                                the State within the borders of 
                                which the tower is to be 
                                constructed and the State 
                                supports the construction of 
                                the tower as part of its State 
                                airport capital plan; and
                                  (bb) the selection of the 
                                tower for funding is based on 
                                objective criteria.
  (c) Safety Audits.-- [The Secretary]
          (1) Before date of transfer._Before the date of 
        transfer (as defined in section 90101(a)), the 
        Secretary shall establish uniform standards and 
        requirements for regular safety assessments of air 
        traffic control towers that receive funding under this 
        section.
          (2) On and after date of transfer.--On and after the 
        date of transfer (as defined in section 90101(a)), 
        oversight of air traffic control towers that receive 
        funding under this section shall be carried out in 
        accordance with performance-based regulations and 
        minimum safety standards prescribed under section 
        90501.
  (d) Criteria to Evaluate Participants.--
          (1) Timing of evaluations.--
                  (A) Towers participating in cost-share 
                program.--In the case of an air traffic control 
                tower that is operated under the program 
                established under subsection (b)(3), the 
                Secretary shall annually calculate a benefit-
                to-cost ratio with respect to the tower.
                  (B) Towers participating in contract tower 
                program.--In the case of an air traffic control 
                tower that is operated under the program 
                established under subsection (a) and continued 
                under subsection (b)(1), the Secretary shall 
                not calculate a benefit-to-cost ratio after the 
                date of enactment of this subsection with 
                respect to the tower unless the Secretary 
                determines that the annual aircraft traffic at 
                the airport where the tower is located has 
                decreased--
                          (i) by more than 25 percent from the 
                        previous year; or
                          (ii) by more than 60 percent 
                        cumulatively in the preceding 3-year 
                        period.
          (2) Costs to be considered.--In establishing a 
        benefit-to-cost ratio under this section with respect 
        to an air traffic control tower, the Secretary shall 
        consider only the following costs:
                  (A) The Federal Aviation Administration's 
                actual cost of wages and benefits of personnel 
                working at the tower.
                  (B) The Federal Aviation Administration's 
                actual telecommunications costs directly 
                associated with the tower.
                  (C) The Federal Aviation Administration's 
                costs of purchasing and installing any air 
                traffic control equipment that would not have 
                been purchased or installed except for the 
                operation of the tower.
                  (D) The Federal Aviation Administration's 
                actual travel costs associated with maintaining 
                air traffic control equipment that is owned by 
                the Administration and would not be maintained 
                except for the operation of the tower.
          (3) Other criteria to be considered.--In establishing 
        a benefit-to-cost ratio under this section with respect 
        to an air traffic control tower, the Secretary shall 
        add a 10 percentage point margin of error to the 
        benefit-to-cost ratio determination to acknowledge and 
        account for the direct and indirect economic and other 
        benefits that are not included in the criteria the 
        Secretary used in calculating that ratio.
          (4) Review of cost-benefit determinations.--In 
        issuing a benefit-to-cost ratio determination under 
        this section with respect to an air traffic control 
        tower located at an airport, the Secretary shall 
        implement the following procedures:
                  (A) The Secretary shall provide the airport 
                (or the State or local government having 
                jurisdiction over the airport) at least 90 days 
                following the date of receipt of the 
                determination to submit to the Secretary a 
                request for an appeal of the determination, 
                together with updated or additional data in 
                support of the appeal.
                  (B) Upon receipt of a request for an appeal 
                submitted pursuant to subparagraph (A), the 
                Secretary shall--
                          (i) transmit to the Administrator of 
                        the Federal Aviation Administration any 
                        updated or additional data submitted in 
                        support of the appeal; and
                          (ii) provide the Administrator not 
                        more than 90 days to review the data 
                        and provide a response to the Secretary 
                        based on the review.
                  (C) After receiving a response from the 
                Administrator pursuant to subparagraph (B), the 
                Secretary shall--
                          (i) provide the airport, State, or 
                        local government that requested the 
                        appeal at least 30 days to review the 
                        response; and
                          (ii) withhold from taking further 
                        action in connection with the appeal 
                        during that 30-day period.
                  (D) If, after completion of the appeal 
                procedures with respect to the determination, 
                the Secretary requires the tower to transition 
                into the program established under subsection 
                (b)(3), the Secretary shall not require a cost-
                share payment from the airport, State, or local 
                government for 1 year following the last day of 
                the 30-day period described in subparagraph 
                (C).

           *       *       *       *       *       *       *

Sec. 47128. State block grant program

  (a) General Requirements.--The Secretary of Transportation 
shall issue guidance to carry out a State block grant program. 
The guidance shall provide that the Secretary may designate 
[not more than 9 qualified States for fiscal years 2000 and 
2001 and 10 qualified States for each fiscal year thereafter] 
not more than 20 qualified States for each fiscal year to 
assume administrative responsibility for all airport grant 
amounts available under this subchapter, except for amounts 
designated for use at primary airports.
  (b) Applications and Selection.--A State wishing to 
participate in the program must submit an application to the 
Secretary. The Secretary shall select a State on the basis of 
its application only after--
          (1) deciding the State has an organization capable of 
        effectively administering a block grant made under this 
        section;
          (2) deciding the State uses a satisfactory airport 
        system planning process;
          (3) deciding the State uses a programming process 
        acceptable to the Secretary;
          (4) finding that the State has agreed to comply with 
        United States Government standard requirements for 
        administering the block grant, 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; and
          (5) finding that the State has agreed to provide the 
        Secretary with program information the Secretary 
        requires.
  (c) Safety and Security Needs and Needs of System.--Before 
deciding whether a planning process is satisfactory or a 
programming process is acceptable under subsection (b)(2) or 
(b)(3) of this section, the Secretary shall ensure that the 
process provides for meeting critical safety and security needs 
and that the programming process ensures that the needs of the 
national airport system will be addressed in deciding which 
projects will receive money from the Government. In carrying 
out this subsection, the Secretary shall permit a State to use 
the priority system of the State if such system is not 
inconsistent with the national priority system.
  (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. 47136. Inherently low-emission airport vehicle pilot program

  [(a) In General.--The Secretary of Transportation shall carry 
out a pilot program at not more than 10 public-use airports 
under which the sponsors of such airports may use funds made 
available under section 48103 for use at such airports to carry 
out inherently low-emission vehicle activities. Notwithstanding 
any other provision of this subchapter, inherently low-emission 
vehicle activities shall for purposes of the pilot program be 
treated as eligible for assistance under this subchapter.
  [(b) Location in Air Quality Nonattainment Areas.--
          [(1) In general.--A public-use airport shall be 
        eligible for participation in the pilot program only if 
        the airport is located in an air quality nonattainment 
        area (as defined in section 171(2) of the Clean Air Act 
        (42 U.S.C. 7501(2)).
          [(2) Shortage of candidates.--If the Secretary 
        receives an insufficient number of applications from 
        public-use airports located in such areas, then the 
        Secretary may consider applications from public-use 
        airports that are not located in such areas.
  [(c) Selection Criteria.--In selecting from among applicants 
for participation in the pilot 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 pilot 
program.
  [(d) United States Government's Share.--Notwithstanding any 
other provision of this subchapter, the United States 
Government's share of the costs of a project carried out under 
the pilot program shall be 50 percent.
  [(e) Maximum Amount.--Not more than $2,000,000 may be 
expended under the pilot program at any single public-use 
airport.
  [(f) Technical Assistance.--
          [(1) In general.--The sponsor of a public-use airport 
        carrying out inherently low-emission vehicle activities 
        under the pilot program may use not more than 10 
        percent of the amounts made available for expenditure 
        at the airport in a fiscal year under the pilot program 
        to receive technical assistance in carrying out such 
        activities.
          [(2) University transportation center.--To the 
        maximum extent practicable, participants in the pilot 
        program shall use a university transportation center 
        (as defined in section 5506 of this title) in the 
        region of the airport to receive technical assistance 
        described in paragraph (1).
  [(g) Materials Identifying Best Practices.--The Administrator 
may develop and make available materials identifying best 
practices for carrying out low-emission vehicle activities 
based on the projects carried out under the pilot program and 
other sources.
  [(h) Report to Congress.--Not later than 18 months after the 
date of the enactment of this section, the Secretary 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 containing--
          [(1) an evaluation of the effectiveness of the pilot 
        program;
          [(2) an identification of other public-use airports 
        that expressed an interest in participating in the 
        pilot program; and
          [(3) a description of the mechanisms used by the 
        Secretary to ensure that the information and know-how 
        gained by participants in the pilot program is 
        transferred among the participants and to other 
        interested parties, including other public-use 
        airports.
  [(i) Inherently Low-Emission Vehicle Activity Defined.--In 
this section, the term ``inherently low-emission vehicle 
activity'' means--
          [(1) the construction of infrastructure or 
        modifications at public-use airports to enable the 
        delivery of fuel and services necessary for the use of 
        vehicles that are certified as inherently low-emission 
        vehicles under title 40 of the Code of Federal 
        Regulations and that--
                  [(A) operate exclusively on compressed 
                natural gas, liquefied natural gas, liquefied 
                petroleum gas, electricity, hydrogen, or a 
                blend at least 85 percent of which is methanol;
                  [(B) are labeled in accordance with section 
                88.312-93(c) of such title; and
                  [(C) are located or primarily used at public-
                use airports;
          [(2) the construction of infrastructure or 
        modifications at public-use airports to enable the 
        delivery of fuel and services necessary for the use of 
        nonroad vehicles that--
                  [(A) operate exclusively on compressed 
                natural gas, liquefied natural gas, liquefied 
                petroleum gas, electricity, hydrogen, or a 
                blend at least 85 percent of which is methanol;
                  [(B) meet or exceed the standards set forth 
                in section 86.1708-99 of such title or the 
                standards set forth in section 89.112(a) of 
                such title, and are in compliance with the 
                requirements of section 89.112(b) of such 
                title; and
                  [(C) are located or primarily used at public-
                use airports;
          [(3) the payment of that portion of the cost of 
        acquiring vehicles described in this subsection that 
        exceeds the cost of acquiring other vehicles or engines 
        that would be used for the same purpose; or
          [(4) the acquisition of technological capital 
        equipment to enable the delivery of fuel and services 
        necessary for the use of vehicles described in 
        paragraph (1).]

Sec. [47136a.]  47136. 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.]
  (a) In General.--The Secretary of Transportation may 
establish a pilot program under which the sponsors of not less 
than 10 public-use airports may use funds made available under 
this chapter or section 48103 for use at such airports to carry 
out--
          (1) activities associated with the acquisition, by 
        purchase or lease, and operation of zero-emission 
        vehicles, including removable power sources for such 
        vehicles; and
          (2) the construction or modification of 
        infrastructure to facilitate the delivery of fuel and 
        services necessary for the use of such vehicles.
  (b) Eligibility.--A public-use airport is eligible for 
participation in the program if the vehicles or ground support 
equipment are--
          (1) used exclusively at the airport; or
          (2) used exclusively to transport people or materials 
        to and from the airport.
  (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).]
  (d) Federal Share.--The Federal share of the cost of a 
project carried out under the program shall be the Federal 
share specified in section 47109.
  (e) Technical Assistance.--
          (1) In general.--The sponsor of a public-use airport 
        may use not more than 10 percent of the amounts made 
        available to the sponsor under the program in any 
        fiscal year for--
                  (A) technical assistance; and
                  (B) project management support to assist the 
                airport with the solicitation, acquisition, and 
                deployment of zero-emission vehicles, related 
                equipment, and supporting infrastructure.
          (2) Providers of technical assistance.--To receive 
        the technical assistance or project management support 
        described in paragraph (1), participants in the program 
        may use--
                  (A) a nonprofit organization selected by the 
                Secretary; or
                  (B) a university transportation center 
                receiving grants under section 5505 in the 
                region of the airport.
  (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] the inherently low 
emission airport vehicle pilot program and other sources.
  (g) Allowable Project Cost.--The allowable project cost for 
the acquisition of a zero-emission vehicle shall be the total 
cost of purchasing or leasing the vehicle, including the cost 
of technical assistance or project management support described 
in subsection (e).
  (h) Flexible Procurement.--A sponsor of a public-use airport 
may use funds made available under the program to acquire, by 
purchase or lease, a zero-emission vehicle and a removable 
power source in separate transactions, including transactions 
by which the airport purchases the vehicle and leases the 
removable power source.
  (i) Testing Required.--A sponsor of a public-use airport may 
not use funds made available under the program to acquire a 
zero-emission vehicle unless that make, model, or type of 
vehicle has been tested by a Federal vehicle testing facility 
acceptable to the Secretary.
  (j) Removable Power Source Defined.--In this section, the 
term ``removable power source'' means a power source that is 
separately installed in, and removable from, a zero-emission 
vehicle and may include a battery, a fuel cell, an ultra-
capacitor, or other advanced power source used in a zero-
emission vehicle.

           *       *       *       *       *       *       *

[Sec. 47140. Airport ground support equipment emissions retrofit pilot 
                    program

  [(a) In General.--The Secretary of Transportation shall carry 
out a pilot program at not more than 10 commercial service 
airports under which the sponsors of such airports may use an 
amount made available under section 48103 to retrofit existing 
eligible airport ground support equipment that burns 
conventional fuels to achieve lower emissions utilizing 
emission control technologies certified or verified by the 
Environmental Protection Agency.
  [(b) Location in Air Quality Nonattainment or Maintenance 
Areas.--A commercial service airport shall be eligible for 
participation in the pilot program only if the airport is 
located in an air quality nonattainment area (as defined in 
section 171(2) of the Clean Air Act (42 U.S.C. 7501(2))) or a 
maintenance area referred to in section 175A of such Act (42 
U.S.C. 7505a).
  [(c) Selection Criteria.--In selecting from among applicants 
for participation in the pilot 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 pilot 
program.
  [(d) Maximum Amount.--Not more than $500,000 may be expended 
under the pilot program at any single commercial service 
airport.
  [(e) Guidelines.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, shall 
establish guidelines regarding the types of retrofit projects 
eligible under the pilot program by considering remaining 
equipment useful life, amounts of emission reduction in 
relation to the cost of projects, and other factors necessary 
to carry out this section. The Secretary may give priority to 
ground support equipment owned by the airport and used for 
airport purposes.
  [(f) Eligible Equipment Defined.--In this section, the term 
``eligible equipment'' means ground service or maintenance 
equipment that is located at the airport, is used to support 
aeronautical and related activities at the airport, and will 
remain in operation at the airport for the life or useful life 
of the equipment, whichever is earlier.]

Sec. [47140a.]  47140. 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.

Sec. 47141. Compatible land use planning and projects by State and 
                    local governments

  (a) In General.--The Secretary of Transportation may make 
grants, from amounts set aside under section 47117(e)(1)(A), to 
States and units of local government for development and 
implementation of land use compatibility plans and 
implementation of land use compatibility projects resulting 
from those plans for the purposes of making the use of land 
areas around large hub airports and medium hub airports 
compatible with aircraft operations. The Secretary may make a 
grant under this section for a land use compatibility plan or a 
project resulting from such plan only if--
          (1) the airport operator has not submitted a noise 
        compatibility program to the Secretary under section 
        47504 or has not updated such program within the 
        preceding 10 years; and
          (2) the land use plan or project meets the 
        requirements of this section.
  (b) Eligibility.--In order to receive a grant under this 
section, a State or unit of local government must--
          (1) have the authority to plan and adopt land use 
        control measures, including zoning, in the planning 
        area in and around a large or medium hub airport;
          (2) enter into an agreement with the airport owner or 
        operator that the development of the land use 
        compatibility plan will be done cooperatively; and
          (3) provide written assurance to the Secretary that 
        it will achieve, to the maximum extent possible, 
        compatible land uses consistent with Federal land use 
        compatibility criteria under section 47502(3) and that 
        those compatible land uses will be maintained.
  (c) Assurances.--The Secretary shall require a State or unit 
of local government to which a grant may be made under this 
section for a land use plan or a project resulting from such 
plan to provide--
          (1) assurances satisfactory to the Secretary that the 
        plan--
                  (A) is reasonably consistent with the goal of 
                reducing existing noncompatible land uses and 
                preventing the introduction of additional 
                noncompatible land uses;
                  (B) addresses ways to achieve and maintain 
                compatible land uses, including zoning, 
                building codes, and any other land use 
                compatibility measures under section 
                47504(a)(2) that are within the authority of 
                the State or unit of local government to 
                implement;
                  (C) uses noise contours provided by the 
                airport operator that are consistent with the 
                airport operation and planning, including any 
                noise abatement measures adopted by the airport 
                operator as part of its own noise mitigation 
                efforts;
                  (D) does not duplicate, and is not 
                inconsistent with, the airport operator's noise 
                compatibility measures for the same area; and
                  (E) has been approved jointly by the airport 
                owner or operator and the State or unit of 
                local government; and
          (2) such other assurances as the Secretary determines 
        to be necessary to carry out this section.
  (d) Guidelines.--The Secretary shall establish guidelines to 
administer this section in accordance with the purposes and 
conditions described in this section. The Secretary may require 
a State or unit of local government to which a grant may be 
made under this section to provide progress reports and other 
information as the Secretary determines to be necessary to 
carry out this section.
  (e) Eligible Projects.--The Secretary may approve a grant 
under this section to a State or unit of local government for a 
project resulting from a land use compatibility plan only if 
the Secretary is satisfied that the project is consistent with 
the guidelines established by the Secretary under this section, 
the State or unit of local government has provided the 
assurances required by this section, the State or unit of local 
government has implemented (or has made provision to implement) 
those elements of the plan that are not eligible for Federal 
financial assistance, and that the project is not inconsistent 
with applicable Federal Aviation Administration standards.
  (f) Sunset.--This section shall not be in effect after 
[September 30, 2017] September 30, 2023 .

           *       *       *       *       *       *       *

           SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

Sec. 47171. Expedited, coordinated environmental review process

  (a) Aviation Project Review Process.--The Secretary of 
Transportation shall develop and implement an expedited and 
coordinated environmental review process for airport capacity 
enhancement projects at congested airports, aviation safety 
projects, and aviation security projects that--
          (1) provides for better coordination among the 
        Federal, regional, State, and local agencies concerned 
        with the preparation of environmental impact statements 
        or environmental assessments under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.);
          (2) provides that all environmental reviews, 
        analyses, opinions, permits, licenses, and approvals 
        that must be issued or made by a Federal agency or 
        airport sponsor for such a project will be conducted 
        concurrently, to the maximum extent practicable; and
          (3) provides that any environmental review, analysis, 
        opinion, permit, license, or approval that must be 
        issued or made by a Federal agency or airport sponsor 
        for such a project will be completed within a time 
        period established by the Secretary, in cooperation 
        with the agencies identified under subsection (d) with 
        respect to the project.
  (b) Aviation Projects Subject to a Streamlined Environmental 
Review Process.--
          (1) Airport capacity enhancement projects at 
        congested airports.--An airport capacity enhancement 
        project at a congested airport shall be subject to the 
        coordinated and expedited environmental review process 
        requirements set forth in this section.
          (2) Aviation safety and aviation security projects.--
                  (A) In general.--The Administrator of the 
                Federal Aviation Administration may designate 
                an aviation safety project or aviation security 
                project for priority environmental review. The 
                Administrator may not delegate this designation 
                authority. A designated project shall be 
                subject to the coordinated and expedited 
                environmental review process requirements set 
                forth in this section.
                  (B) Project designation criteria.--The 
                Administrator shall establish guidelines for 
                the designation of an aviation safety project 
                or aviation security project for priority 
                environmental review. Such guidelines shall 
                provide for consideration of--
                          (i) the importance or urgency of the 
                        project;
                          (ii) the potential for undertaking 
                        the environmental review under existing 
                        emergency procedures under the National 
                        Environmental Policy Act of 1969 (42 
                        U.S.C. 4321 et seq.);
                          (iii) the need for cooperation and 
                        concurrent reviews by other Federal or 
                        State agencies;
                          (iv) the prospect for undue delay if 
                        the project is not designated for 
                        priority review; and
                          (v) for aviation security projects, 
                        the views of the Department of Homeland 
                        Security.
  (c) High Priority of and Agency Participation in Coordinated 
Reviews.--
          (1) High priority for environmental reviews.--Each 
        Federal agency with jurisdiction over an environmental 
        review, analysis, opinion, permit, license, or approval 
        shall accord any such review, analysis, opinion, 
        permit, license, or approval involving an airport 
        capacity enhancement project at a congested airport or 
        a project designated under subsection (b)(2) the 
        highest possible priority and conduct the review, 
        analysis, opinion, permit, license, or approval 
        expeditiously.
          (2) Agency participation.--Each Federal agency 
        described in subsection (d) shall formulate and 
        implement administrative, policy, and procedural 
        mechanisms to enable the agency to participate in the 
        coordinated environmental review process under this 
        section and to ensure completion of environmental 
        reviews, analyses, opinions, permits, licenses, and 
        approvals described in subsection (a) in a timely and 
        environmentally responsible manner.
  (d) Identification of Jurisdictional Agencies.--With respect 
to each airport capacity enhancement project at a congested 
airport or a project designated under subsection (b)(2), the 
Secretary shall identify, as soon as practicable, all Federal 
and State agencies that may have jurisdiction over 
environmental-related matters that may be affected by the 
project or may be required by law to conduct an environmental-
related review or analysis of the project or determine whether 
to issue an environmental-related permit, license, or approval 
for the project.
  (e) State Authority.--Under a coordinated review process 
being implemented under this section by the Secretary with 
respect to a project at an airport within the boundaries of a 
State, the Governor of the State, consistent with State law, 
may choose to participate in such process and provide that all 
State agencies that have jurisdiction over environmental-
related matters that may be affected by the project or may be 
required by law to conduct an environmental-related review or 
analysis of the project or determine whether to issue an 
environmental- related permit, license, or approval for the 
project, be subject to the process.
  (f) Memorandum of Understanding.--The coordinated review 
process developed under this section may be incorporated into a 
memorandum of understanding for a project between the Secretary 
and the heads of other Federal and State agencies identified 
under subsection (d) with respect to the project and, if 
applicable, the airport sponsor.
  (g) Use of Interagency Environmental Impact Statement 
Teams.--
          (1) In general.--The Secretary may utilize an 
        interagency environmental impact statement team to 
        expedite and coordinate the coordinated environmental 
        review process for a project under this section. When 
        utilizing an interagency environmental impact statement 
        team, the Secretary shall invite Federal, State and 
        Tribal agencies with jurisdiction by law, and may 
        invite such agencies with special expertise, to 
        participate on an interagency environmental impact 
        statement team.
          (2) Responsibility of interagency environmental 
        impact statement team.--Under a coordinated 
        environmental review process being implemented under 
        this section, the interagency environmental impact 
        statement team shall assist the Federal Aviation 
        Administration in the preparation of the environmental 
        impact statement. To facilitate timely and efficient 
        environmental review, the team shall agree on agency or 
        Tribal points of contact, protocols for communication 
        among agencies, and deadlines for necessary actions by 
        each individual agency (including the review of 
        environmental analyses, the conduct of required 
        consultation and coordination, and the issuance of 
        environmental opinions, licenses, permits, and 
        approvals). The members of the team may formalize their 
        agreement in a written memorandum.
  (h) Lead Agency Responsibility.--The Federal Aviation 
Administration shall be the lead agency for projects designated 
under subsection (b)(2) and airport capacity enhancement 
projects at congested airports and shall be responsible for 
defining the scope and content of the environmental impact 
statement, consistent with regulations issued by the Council on 
Environmental Quality. Any other Federal agency or State agency 
that is participating in a coordinated environmental review 
process under this section shall give substantial deference, to 
the extent consistent with applicable law and policy, to the 
aviation expertise of the Federal Aviation Administration.
  (i) Effect of Failure To Meet Deadline.--
          (1) Notification of Congress and CEQ.--If the 
        Secretary determines that a Federal agency, State 
        agency, or airport sponsor that is participating in a 
        coordinated review process under this section with 
        respect to a project has not met a deadline established 
        under subsection (a)(3) for the project, the Secretary 
        shall notify, within 30 days of the date of such 
        determination, the Committee on Commerce, Science, and 
        Transportation of the Senate, the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives, the Council on Environmental Quality, 
        and the agency or sponsor involved about the failure to 
        meet the deadline.
          (2) Agency report.--Not later than 30 days after date 
        of receipt of a notice under paragraph (1), the agency 
        or sponsor involved shall submit a report to the 
        Secretary, the Committee on Transportation and 
        Infrastructure of the House of Representatives, the 
        Committee on Commerce, Science, and Transportation of 
        the Senate, and the Council on Environmental Quality 
        explaining why the agency or sponsor did not meet the 
        deadline and what actions it intends to take to 
        complete or issue the required review, analysis, 
        opinion, permit, license, or approval.
  (j) Purpose and Need.--For any environmental review, 
analysis, opinion, permit, license, or approval that must be 
issued or made by a Federal or State agency that is 
participating in a coordinated review process under this 
section and that requires an analysis of purpose and need for 
the project, the agency, notwithstanding any other provision of 
law, shall be bound by the project purpose and need as defined 
by the Secretary.
  (k) Alternatives Analysis.--The Secretary shall determine the 
reasonable alternatives to an airport capacity enhancement 
project at a congested airport or a project designated under 
subsection (b)(2). Any other Federal agency, or State agency 
that is participating in a coordinated review process under 
this section with respect to the project shall consider only 
those alternatives to the project that the Secretary has 
determined are reasonable.
  (l) Solicitation and Consideration of Comments.--In applying 
subsections (j) and (k), the Secretary shall solicit and 
consider comments from interested persons and governmental 
entities in accordance with the National Environmental Policy 
Act of 1969 (42 U.S.C. [4371] 4321 et seq.).
  (m) Monitoring by Task Force.--The Transportation 
Infrastructure Streamlining Task Force, established by 
Executive Order 13274 (67 Fed. Reg. 59449; relating to 
environmental stewardship and transportation infrastructure 
project reviews), may monitor airport projects that are subject 
to the coordinated review process under this section.

           *       *       *       *       *       *       *

CHAPTER 475--NOISE

           *       *       *       *       *       *       *

SUBCHAPTER I--NOISE ABATEMENT

           *       *       *       *       *       *       *

Sec. 47503. Noise exposure maps

  (a) Submission and Preparation.--An airport operator may 
submit to the Secretary of Transportation a noise exposure map 
showing the noncompatible uses in each area of the map on the 
date the map is submitted, a description of estimated aircraft 
operations during a forecast period that is at least 5 years in 
the future and how those operations will affect the map. The 
map shall--
          (1) be prepared in consultation with public agencies 
        and planning authorities in the area surrounding the 
        airport; and
          (2) comply with regulations prescribed under section 
        47502 of this title.
  [(b) Revised Maps.--If, in an area surrounding an airport, a 
change in the operation of the airport would establish a 
substantial new noncompatible use, or would significantly 
reduce noise over existing noncompatible uses, that is not 
reflected in either the existing conditions map or forecast map 
currently on file with the Federal Aviation Administration, the 
airport operator shall submit a revised noise exposure map to 
the Secretary showing the new noncompatible use or noise 
reduction.]
  (b) Revised Maps.--
          (1) In general.--An airport operator that submitted a 
        noise exposure map under subsection (a) shall submit a 
        revised map to the Secretary if, in an area surrounding 
        an airport, a change in the operation of the airport 
        would establish a substantial new noncompatible use, or 
        would significantly reduce noise over existing 
        noncompatible uses, that is not reflected in either the 
        existing conditions map or forecast map currently on 
        file with the Federal Aviation Administration.
          (2) Timing.--A submission under paragraph (1) shall 
        be required only if the relevant change in the 
        operation of the airport occurs during--
                  (A) the forecast period of the applicable 
                noise exposure map submitted by an airport 
                operator under subsection (a); or
                  (B) the implementation period of the airport 
                operator's noise compatibility program.

Sec. 47504. Noise compatibility programs

  (a) Submissions.--(1) An airport operator that submitted a 
noise exposure map and related information under section 
47503(a) of this title may submit a noise compatibility program 
to the Secretary of Transportation after--
          (A) consulting with public agencies and planning 
        authorities in the area surrounding the airport, United 
        States Government officials having local responsibility 
        for the airport, and air carriers using the airport; 
        and
          (B) notice and an opportunity for a public hearing.
  (2) A program submitted under paragraph (1) of this 
subsection shall state the measures the operator has taken or 
proposes to take to reduce existing noncompatible uses and 
prevent introducing additional noncompatible uses in the area 
covered by the map. The measures may include--
          (A) establishing a preferential runway system;
          (B) restricting the use of the airport by a type or 
        class of aircraft because of the noise characteristics 
        of the aircraft;
          (C) constructing barriers and acoustical shielding 
        and soundproofing public buildings;
          (D) using flight procedures to control the operation 
        of aircraft to reduce exposure of individuals to noise 
        in the area surrounding the airport; and
          (E) acquiring land, air rights, easements, 
        development rights, and other interests to ensure that 
        the property will be used in ways compatible with 
        airport operations.
  (b) Approvals.--(1) The Secretary shall approve or disapprove 
a program submitted under subsection (a) of this section 
(except as the program is related to flight procedures referred 
to in subsection (a)(2)(D) of this section) not later than 180 
days after receiving it. The Secretary shall approve the 
program (except as the program is related to flight procedures 
referred to in subsection (a)(2)(D)) if the program--
          (A) does not place an unreasonable burden on 
        interstate or foreign commerce;
          (B) is reasonably consistent with achieving the goal 
        of reducing noncompatible uses and preventing the 
        introduction of additional noncompatible uses; and
          (C) provides for necessary revisions because of a 
        revised map submitted under section 47503(b) of this 
        title.
  (2) A program (except as the program is related to flight 
procedures referred to in subsection (a)(2)(D) of this section) 
is deemed to be approved if the Secretary does not act within 
the 180-day period.
  (3) The Secretary shall submit any part of a program related 
to flight procedures referred to in subsection (a)(2)(D) of 
this section to the Administrator of the Federal Aviation 
Administration. The Administrator shall approve or disapprove 
that part of the program.
  (4) The Secretary shall not approve in fiscal years 2004 
through 2007 a program submitted under subsection (a) if the 
program requires the expenditure of funds made available under 
section 48103 for mitigation of aircraft noise less than 65 
DNL.
  (c) Grants.--(1) The Secretary may incur obligations to make 
grants from amounts available under section 48103 of this title 
to carry out a project under a part of a noise compatibility 
program approved under subsection (b) of this section. A grant 
may be made to--
          (A) an airport operator submitting the program; and
          (B) a unit of local government in the area 
        surrounding the airport, if the Secretary decides the 
        unit is able to carry out the project.
  (2) Soundproofing and acquisition of certain residential 
buildings and properties.--The Secretary may incur obligations 
to make grants from amounts made available under section 48103 
of this title--
          (A) for projects to soundproof residential 
        buildings--
                  (i) if the airport operator received approval 
                for a grant for a project to soundproof 
                residential buildings pursuant to section 
                301(d)(4)(B) of the Airport and Airway Safety 
                and Capacity Expansion Act of 1987;
                  (ii) if the airport operator submits updated 
                noise exposure contours, as required by the 
                Secretary; and
                  (iii) if the Secretary determines that the 
                proposed projects are compatible with the 
                purposes of this chapter;
          (B) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to soundproof residential buildings 
        located on residential properties, and to acquire 
        residential properties, at which noise levels are not 
        compatible with normal operations of an airport--
                  (i) if the airport operator amended an 
                existing local aircraft noise regulation during 
                calendar year 1993 to increase the maximum 
                permitted noise levels for scheduled air 
                carrier aircraft as a direct result of 
                implementation of revised aircraft noise 
                departure procedures mandated for aircraft 
                safety purposes by the Administrator of the 
                Federal Aviation Administration for 
                standardized application at airports served by 
                scheduled air carriers;
                  (ii) if the airport operator submits updated 
                noise exposure contours, as required by the 
                Secretary; and
                  (iii) if the Secretary determines that the 
                proposed projects are compatible with the 
                purposes of this chapter;
          (C) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to carry out any part of a program 
        developed before February 18, 1980, or before 
        implementing regulations were prescribed, if the 
        Secretary decides the program is substantially 
        consistent with reducing existing noncompatible uses 
        and preventing the introduction of additional 
        noncompatible uses and the purposes of this chapter 
        will be furthered by promptly carrying out the program;
          (D) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to soundproof a building in the noise 
        impact area surrounding the airport that is used 
        primarily for educational or medical purposes and that 
        the Secretary decides is adversely affected by airport 
        noise; [and]
          (E) to an airport operator of a congested airport (as 
        defined in section 47175) and a unit of local 
        government referred to in paragraph (1)(B) of this 
        subsection to carry out a project to mitigate noise in 
        the area surrounding the airport if the project is 
        included as a commitment in a record of decision of the 
        Federal Aviation Administration for an airport capacity 
        enhancement project (as defined in section 47175) even 
        if that airport has not met the requirements of part 
        150 of title 14, Code of Federal Regulations[.]; and
          (F) to an airport operator of a congested airport (as 
        defined in section 47175) and a unit of local 
        government referred to in paragraph (1)(B) to carry out 
        a project to mitigate noise, if the project--
                  (i) consists of--
                          (I) replacement windows, doors, and 
                        the installation of through-the-wall 
                        air-conditioning units; or
                          (II) a contribution of the equivalent 
                        costs to be used for reconstruction, if 
                        reconstruction is the preferred local 
                        solution;
                  (ii) is located at a school near the airport; 
                and
                  (iii) is included in a memorandum of 
                agreement entered into before September 30, 
                2002, even if the airport has not met the 
                requirements of part 150 of title 14, Code of 
                Federal Regulations, and only if the financial 
                limitations of the memorandum are applied.
  (3) An airport operator may agree to make a grant made under 
paragraph (1)(A) of this subsection available to a public 
agency in the area surrounding the airport if the Secretary 
decides the agency is able to carry out the project.
  (4) The Government's share of a project for which a grant is 
made under this subsection is the greater of--
          (A) 80 percent of the cost of the project; or
          (B) the Government's share that would apply if the 
        amounts available for the project were made available 
        under subchapter I of chapter 471 of this title for a 
        project at the airport.
  (5) The provisions of subchapter I of chapter 471 of this 
title related to grants apply to a grant made under this 
chapter, except--
          (A) section 47109(a) and (b) of this title; and
          (B) any provision that the Secretary decides is 
        inconsistent with, or unnecessary to carry out, this 
        chapter.
  (6) Aircraft noise primarily caused by military aircraft.--
The Secretary may make a grant under this subsection for a 
project even if the purpose of the project is to mitigate the 
effect of noise primarily caused by military aircraft at an 
airport.
  (d) Government Relief From Liability.--The Government is not 
liable for damages from aviation noise because of action taken 
under this section.
  (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.
  (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.

           *       *       *       *       *       *       *

PART C--FINANCING

           *       *       *       *       *       *       *

       CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec.
48101. Air navigation facilities and equipment.
48101a. Other facilities and equipment.
     * * * * * * *
[48112. Adjustment to AIP program funding.]
     * * * * * * *

Sec. 48101. Air navigation facilities and equipment

  (a) General Authorization of Appropriations.--Not more than a 
total of the following amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
          [(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.
          [(5) $2,855,000,000 for each of fiscal years 2016 and 
        2017.]
          (1) $2,920,000,000 for fiscal year 2018.
          (2) $2,984,000,000 for fiscal year 2019.
          (3) $3,049,000,000 for fiscal year 2020.
  (b) Availability of Amounts.--Amounts appropriated under this 
section remain available until expended.
  (c) Automated Surface Observation System/Automated Weather 
Observing System Upgrade.--Of the amounts appropriated under 
subsection (a), such sums as may be necessary may be used for 
the implementation and use of upgrades to the current automated 
surface observation system/automated weather observing system, 
if the upgrade is successfully demonstrated.
  (d) Life-Cycle Cost Estimates.--The Administrator of the 
Federal Aviation Administration shall establish life-cycle cost 
estimates for any air traffic control modernization project, 
carried out using amounts appropriated under subsection (a), 
the total life-cycle costs of which equal or exceed 
$50,000,000.

Sec. 48101a. Other facilities and equipment

  There is authorized to be appropriated to the Secretary of 
Transportation to acquire, establish, and improve facilities 
and equipment (other than facilities and equipment relating to 
air traffic services)--
          (1) $189,000,000 for fiscal year 2021;
          (2) $193,000,000 for fiscal year 2022; and
          (3) $198,000,000 for fiscal year 2023.

           *       *       *       *       *       *       *

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 2017.] section 47504(c)--
          (1) $3,597,000,000 for fiscal year 2018;
          (2) $3,666,000,000 for fiscal year 2019;
          (3) $3,746,000,000 for fiscal year 2020;
          (4) $3,829,000,000 for fiscal year 2021;
          (5) $3,912,000,000 for fiscal year 2022; and
          (6) $3,998,000,000 for fiscal year 2023.
  (b) Availability of Amounts.--Amounts made available under 
subsection (a) shall remain available until expended.

           *       *       *       *       *       *       *

Sec. 48109. Submission of budget information and legislative 
                    recommendations and comments

  When the Administrator of the Federal Aviation Administration 
submits to the Secretary of Transportation, the President, or 
the Director of the Office of Management and Budget any budget 
information, legislative recommendation, or comment on 
legislation about amounts authorized in section 48101, 48101a, 
or 48102 of this title, the Administrator concurrently shall 
submit a copy of the information, recommendation, or comment to 
the Speaker of the House of Representatives, the Committees on 
Transportation and Infrastructure and Appropriations of the 
House, the President of the Senate, and the Committees on 
Commerce, Science, and Transportation and Appropriations of the 
Senate.

           *       *       *       *       *       *       *

[Sec. 48112. Adjustment to AIP program funding

   [On the effective date of a general appropriations Act 
providing appropriations for a fiscal year beginning after 
September 30, 2000, for the Federal Aviation Administration, 
the amount made available for a fiscal year under section 48103 
shall be increased by the amount, if any, by which--
          [(1) the amount authorized to be appropriated under 
        section 48101 for such fiscal year; exceeds
          [(2) the amounts appropriated for programs funded 
        under such section for such fiscal year.
Any contract authority made available by this section shall be 
subject to an obligation limitation.]

Sec. 48113. Reprogramming notification requirement

  Before reprogramming any amounts appropriated under section 
106(k), 48101(a), 48101a, or 48103, for which notification of 
the Committees on Appropriations of the Senate and the House of 
Representatives is required, the Secretary of Transportation 
shall transmit a written explanation of the proposed 
reprogramming to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives.

Sec. 48114. Funding for aviation programs

  (a) Authorization of Appropriations.--
          (1) Airport and Airway Trust Fund guarantee.--
                  (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] in fiscal years 
                        2014 through 2017 , 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) Guarantee.--No funds may be appropriated 
                or limited for aviation investment programs 
                listed in subsection (b)(1) unless the amount 
                described in subparagraph (A) has been 
                provided.
          (2) Additional authorizations of appropriations from 
        the general fund.--In any fiscal year through fiscal 
        year 2017, if the amount described in paragraph (1) is 
        appropriated, there is further authorized to be 
        appropriated from the general fund of the Treasury such 
        sums as may be necessary for the Federal Aviation 
        Administration Operations account.
  (b) Definitions.--In this section, the following definitions 
apply:
          (1) Total budget resources.--The term ``total budget 
        resources'' means the total amount made available from 
        the Airport and Airway Trust Fund for the sum of 
        obligation limitations and budget authority made 
        available for a fiscal year for the following budget 
        accounts that are subject to the obligation limitation 
        on contract authority provided in this title and for 
        which appropriations are provided pursuant to 
        authorizations contained in this title:
                  (A) 69-8106-0-7-402 (Grants in Aid for 
                Airports).
                  (B) 69-8107-0-7-402 (Facilities and 
                Equipment).
                  (C) 69-8108-0-7-402 (Research and 
                Development).
                  (D) 69-8104-0-7-402 (Trust Fund Share of 
                Operations).
          (2) Estimated level of receipts plus interest.--The 
        term ``estimated level of receipts plus interest'' 
        means the level of excise taxes and interest credited 
        to the Airport and Airway Trust Fund under section 9502 
        of the Internal Revenue Code of 1986 for a fiscal year 
        as set forth in the President's budget baseline 
        projection as defined in section 257 of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 
        (Public Law 99-177) (Treasury identification code 20-
        8103-0-7-402) for that fiscal year submitted pursuant 
        to section 1105 of title 31, United States Code.
  (c) Enforcement of Guarantees.--
          (1) Total Airport and Airway Trust Fund funding.--It 
        shall not be in order in the House of Representatives 
        or the Senate to consider any bill, joint resolution, 
        amendment, motion, or conference report that would 
        cause total budget resources in a fiscal year for 
        aviation investment programs described in subsection 
        (b) to be less than the amount required by subsection 
        (a)(1)(A) for such fiscal year.
          (2) Capital priority.--It shall not be in order in 
        the House of Representatives or the Senate to consider 
        any bill, joint resolution, amendment, motion, or 
        conference report that provides an appropriation (or 
        any amendment thereto) for any fiscal year through 
        fiscal year 2017 for Research and Development or 
        Operations if the sum of the obligation limitation for 
        Grants-in-Aid for Airports and the appropriation for 
        Facilities and Equipment for such fiscal year is below 
        the sum of the authorized levels for Grants-in-Aid for 
        Airports and for Facilities and Equipment for such 
        fiscal year.

           *       *       *       *       *       *       *

       Subtitle XI--American Air Navigation Services Corporation

Chapter                                                             Sec.
      General Provisions...........................................90101
      Establishment of Air Traffic Services Provider; Transfer of Air 3.
        Traffic Services...........................................90301
      Regulation of Air Traffic Services Provider..................90501
      General Rights of Access to Airspace, Airports, and Air Traffic 7.
        Services Vital for Ensuring Safe Operations for All Users..90701
      Continuity of Air Traffic Services to Department of Defense and 9.
        Other Public Agencies......................................90901
      Employee Management..........................................91101
      Other Matters................................................91301
      Congressional Oversight of Air Traffic Services Provider.....91501

                    CHAPTER 901--GENERAL PROVISIONS

Sec.
90101. Definitions.

Sec. 90101. Definitions

  (a) In General.--In this subtitle, the following definitions 
apply:
          (1) Administrator.--The term ``Administrator'' means 
        the Administrator of the FAA.
          (2) Air traffic services.--The term ``air traffic 
        services'' means services--
                  (A) used for the monitoring, directing, 
                control, and guidance of aircraft or flows of 
                aircraft and for the safe conduct of flight, 
                including communications, navigation, and 
                surveillance services and provision of 
                aeronautical information; and
                  (B) provided directly, or contracted for, by 
                the FAA before the date of transfer.
          (3) Air traffic services user.--The term ``air 
        traffic services user'' means any individual or entity 
        using air traffic services provided by the Corporation 
        within United States airspace or international airspace 
        delegated to the United States.
          (4) Board.--The term ``Board'' means the Board of 
        Directors of the Corporation.
          (5) CEO.--The term ``CEO'' means the Chief Executive 
        Officer of the Corporation.
          (6) Charge; fee.--The terms ``charge'' and ``fee'' 
        mean any rate, charge, fee, or other service charge for 
        the use of air traffic services.
          (7) Corporation.--The term ``Corporation'' means the 
        American Air Navigation Services Corporation 
        established under this subtitle.
          (8) Date of transfer.--The term ``date of transfer'' 
        means the date on which the Corporation assumes 
        operational control of air traffic services from the 
        FAA pursuant to this subtitle, which shall be October 
        1, 2020.
          (9) Director.--The term ``Director'' means a Director 
        of the Board.
          (10) FAA.--The term ``FAA'' means the Federal 
        Aviation Administration.
          (11) Interim ceo.--The term ``Interim CEO'' means the 
        Interim Chief Executive Officer of the Corporation.
          (12) Regional air carrier.--The term ``regional air 
        carrier'' means an air carrier operating under part 121 
        of title 14, Code of Federal Regulations, that--
                  (A) exclusively or primarily operates 
                aircraft with a seating capacity of 76 seats or 
                fewer; and
                  (B) is not majority owned or controlled by 
                any other air carrier or air carrier holding 
                company.
          (13) Secretary.--The term ``Secretary'' means the 
        Secretary of Transportation.
  (b) Applicability of Other Definitions.--Except with respect 
to the terms specifically defined in this subtitle, the 
definitions contained in section 40102(a) shall apply to the 
terms used in this subtitle.

 CHAPTER 903--ESTABLISHMENT OF AIR TRAFFIC SERVICES PROVIDER; TRANSFER 
                        OF AIR TRAFFIC SERVICES

Sec.
90301. Establishment of Corporation.
90302. Transfer of air traffic services.
90303. Role of Secretary in transferring air traffic services to 
          Corporation.
90304. Status and applicable laws.
90305. Nomination Panels for Board.
90306. Board of Directors.
90307. Fiduciary duties and qualifications of Directors.
90308. Bylaws and duties.
90309. Committees of Board; independent auditors.
90310. Advisory Board.
90311. Officers and their responsibilities.
90312. Authority of Corporation.
90313. Charges and fees for air traffic services.
90314. Preemption of authority over air traffic services.
90315. Actions by and against Corporation.
90316. Transfer of Federal personnel to Corporation.
90317. Transfer of facilities to Corporation.
90318. Approval of transferred air navigation facilities and other 
          equipment.
90319. Use of spectrum systems and data.
90320. Transition plan.

Sec. 90301. Establishment of Corporation

  (a) Federal Charter.--There is established a federally 
chartered, not-for-profit corporation to be known as the 
``American Air Navigation Services Corporation'', which shall 
be incorporated in a State of its choosing.
  (b) Corporation Name.--
          (1) In general.--The Corporation may conduct its 
        business and affairs, and otherwise hold itself out, as 
        the ``American Air Navigation Services Corporation'' in 
        any jurisdiction.
          (2) Exclusive right.--The Corporation shall have the 
        exclusive right to use the name ``American Air 
        Navigation Services Corporation''.
          (3) Alternative name.--The Corporation may do 
        business under a name other than the ``American Air 
        Navigation Services Corporation'' at its choosing.

Sec. 90302. Transfer of air traffic services

  (a) In General.--The Secretary shall transfer operational 
control over air traffic services within United States airspace 
and international airspace delegated to the United States to 
the Corporation on the date of transfer in a systematic and 
orderly manner that ensures continuity of safe air traffic 
services.
  (b) Management and Operation of Air Traffic Services.--
Subject to section 90501, including the performance-based 
regulations and minimum safety standards prescribed under that 
section, the Corporation may establish and carry out plans for 
the management and operation of air traffic services within 
United States airspace and international airspace delegated to 
the United States.
  (c) Entities Authorized To Provide Air Traffic Services After 
Date of Transfer.--After the date of transfer, no entity, other 
than the Corporation, is authorized or permitted to provide air 
traffic services within United States airspace or international 
airspace delegated to the United States, except for--
          (1) the Department of Defense, as authorized by 
        chapter 909;
          (2) entities to which the United States has delegated 
        certain air traffic services responsibilities;
          (3) entities with which the Corporation has 
        contracted for the provision of air traffic services; 
        and
          (4) entities authorized to operate an unmanned 
        aircraft traffic management system or service pursuant 
        to section 45506 or 45507.

Sec. 90303. Role of Secretary in transferring air traffic services to 
                    Corporation

  (a) In General.--As appropriate, and except as otherwise 
provided, the Secretary shall manage and execute the transfer 
of operational control over air traffic services pursuant to 
section 90302(a) and any related transition processes and 
procedures.
  (b) Nondelegation.--Except as otherwise provided, the 
Secretary may not delegate any of the authority or requirements 
under this subtitle to the Administrator.

Sec. 90304. Status and applicable laws

  (a) Non-federal Entity.--The Corporation is not a department, 
agency, or instrumentality of the United States Government, and 
is not subject to title 31.
  (b) Liability.--The United States Government shall not be 
liable for the actions or inactions of the Corporation.
  (c) Not-for-profit Corporation.--The Corporation shall 
maintain its status as a not-for-profit corporation exempt from 
taxation under the Internal Revenue Code of 1986.
  (d) No Federal Guarantee.--Any debt assumed by the 
Corporation shall not have an implied or explicit Federal 
guarantee.

Sec. 90305. Nomination Panels for Board

  (a) In General.--The Nomination Panels described in 
subsection (b) shall be responsible for nominating individuals 
to serve as Directors pursuant to section 90306.
  (b) Nomination Panels.--The Nomination Panels shall be as 
follows:
          (1) Passenger air carrier nomination panel.--A 
        Passenger Air Carrier Nomination Panel composed of 
        passenger air carrier representatives, with each air 
        carrier with more than 30,000,000 annual passenger 
        enplanements designating 1 representative to the Panel.
          (2) Cargo air carrier nomination panel.--A Cargo Air 
        Carrier Nomination Panel composed of cargo air carrier 
        representatives, with each all-cargo air carrier with 
        more than 1,000,000 total annual enplaned cargo revenue 
        tons designating 1 representative to the Panel.
          (3) Regional air carrier nomination panel.--A 
        Regional Air Carrier Nomination Panel composed of 
        regional air carrier representatives, with each of the 
        3 largest regional air carriers, as measured by annual 
        passenger enplanements, designating 1 representative to 
        the Panel.
          (4) General aviation nomination panel.--A General 
        Aviation Nomination Panel composed of 6 representatives 
        designated by the principal organization representing 
        noncommercial owners and recreational operators of 
        general aviation aircraft.
          (5) Business aviation nomination panel.--A Business 
        Aviation Nomination Panel composed of--
                  (A) 2 representatives designated by the 
                principal organization representing owners, 
                operators, and users of general aviation 
                aircraft used exclusively in furtherance of 
                business enterprises;
                  (B) 2 representatives designated by the 
                principal organization representing aviation-
                related businesses, including fixed-base 
                operators; and
                  (C) 2 representatives designated by the 
                principal organization representing aerospace 
                manufacturers of general aviation aircraft and 
                equipment.
          (6) Air traffic controller nomination panel.--An Air 
        Traffic Controller Nomination Panel composed of 6 
        representatives designated by the largest organization 
        engaged in collective bargaining on behalf of air 
        traffic controllers employed by the Corporation.
          (7) Airport nomination panel.--An Airport Nomination 
        Panel composed of--
                  (A) 3 representatives designated by the 
                principal organization representing commercial 
                service airports; and
                  (B) 3 representatives designated by the 
                principal organization representing airport 
                executives.
          (8)  commercial pilot nomination panel.--A Commercial 
        Pilot Nomination Panel composed of commercial pilot 
        representatives, with each organization engaged in 
        collective bargaining on behalf of air carrier pilots 
        with more than 5,000 members designating 1 member to 
        the Panel.
  (c) Determination of Entities.--
          (1) Before date of transfer.--Before the date of 
        transfer, and not later than 30 days after the date of 
        enactment of this subtitle, the Secretary shall 
        determine the entities referred to in subsection (b).
          (2) After date of transfer.--On and after the date of 
        transfer, the Board shall determine the entities 
        referred to in subsection (b), in accordance with the 
        bylaws of the Corporation.
          (3) Statistics.--In determining annual statistics for 
        purposes of this subsection, the Secretary and the 
        Board shall utilize data published by the Department of 
        Transportation for the most recent calendar year.
          (4) Limitations.--
                  (A) Single designation.--No entity determined 
                under this subsection may designate a 
                representative to more than 1 Nomination Panel.
                  (B) Carriers owned or controlled by same 
                holding company.--If 2 or more air carriers 
                determined under this subsection are owned or 
                controlled by the same holding company, only 1 
                of those air carriers may designate a 
                representative to a Nomination Panel.
  (d) Terms.--An individual on a Nomination Panel shall serve 
at the pleasure of the entity that the individual is 
representing.
  (e) Qualifications.--Only an individual who is a citizen of 
the United States may be designated to a Nomination Panel.
  (f) Prohibitions.--An individual may not serve on a 
Nomination Panel if the individual is--
          (1) an officer or employee of the Corporation;
          (2) a Member of Congress or an elected official 
        serving in a State, local, or Tribal government; or
          (3) an officer or employee of the Federal Government 
        or any State, local, or Tribal government.
  (g) Largest Organization Engaged in Collective Bargaining on 
Behalf of Air Traffic Controllers Employed by the Corporation 
Defined.--Before the date of transfer, in this section, the 
term ``largest organization engaged in collective bargaining on 
behalf of air traffic controllers employed by the Corporation'' 
means the largest organization engaged in collective bargaining 
on behalf of air traffic controllers employed by the FAA.

Sec. 90306. Board of Directors

  (a) Authority.--The powers of the Corporation shall be vested 
in a Board of Directors that governs the Corporation.
  (b) Composition of Board.--The Board shall be composed of the 
following Directors:
          (1) The CEO.
          (2) 2 Directors appointed by the Secretary.
          (3) 1 Director nominated by the Passenger Air Carrier 
        Nomination Panel.
          (4) 1 Director nominated by the Cargo Air Carrier 
        Nomination Panel.
          (5) 1 Director nominated by the Regional Air Carrier 
        Nomination Panel.
          (6) 1 Director nominated by the General Aviation 
        Nomination Panel.
          (7) 1 Director nominated by the Business Aviation 
        Nomination Panel.
          (8) 1 Director nominated by the Air Traffic 
        Controller Nomination Panel.
          (9) 1 Director nominated by the Airport Nomination 
        Panel.
          (10) 1 Director nominated by the Commercial Pilot 
        Nomination Panel.
          (11) 2 Directors nominated and selected by the other 
        Directors.
  (c) Nominations and Appointments.--
          (1) Prior to date of transfer.--
                  (A) Submission of nomination lists.--Before 
                the date of transfer, and not later than 60 
                days after the date of enactment of this 
                subtitle, each Nomination Panel shall submit to 
                the Secretary a list, chosen by consensus, of 4 
                individuals nominated to be Directors.
                  (B) Appointment and selection.--Not later 
                than 30 days after the date on which the last 
                nomination list is submitted under subparagraph 
                (A), the Secretary shall--
                          (i) appoint 2 individuals to be 
                        Directors under subsection (b)(2); and
                          (ii) select, pursuant to subsection 
                        (b), the appropriate number of 
                        individuals to be Directors from each 
                        nomination list.
                  (C) Resubmission.--A Nomination Panel shall 
                resubmit a list submitted under subparagraph 
                (A), not later than 15 days after notification 
                by the Secretary of the need to resubmit the 
                list, if the Secretary determines that an 
                individual on the list is--
                          (i) not qualified to serve as a 
                        Director under section 90307; or
                          (ii) otherwise not fit to serve as a 
                        Director.
                  (D) At-large directors.--Not later than 30 
                days after the Secretary appoints and selects 
                the Directors pursuant to subparagraph (B), the 
                Board shall nominate and select the additional 
                Directors under subsection (b)(11) by a two-
                thirds vote.
          (2) After date of transfer.--
                  (A) Nomination.--As appropriate, a Nomination 
                Panel shall submit to the Board a list, chosen 
                by consensus, of 4 individuals nominated to be 
                Directors.
                  (B) Selection.--The Board shall select, 
                pursuant to subsection (b), the appropriate 
                number of individuals to be Directors from a 
                list submitted by a Nomination Panel.
                  (C) Resubmission.--A Nomination Panel shall 
                resubmit a list submitted under subparagraph 
                (A), not later than 15 days after notification 
                by the Board of the need to resubmit the list, 
                if the Board determines that more than 1 
                individual on the list is--
                          (i) not qualified to serve as a 
                        Director under section 90307; or
                          (ii) otherwise not fit to serve as a 
                        Director.
                  (D) At-large directors.--The Board shall 
                nominate and select Directors under subsection 
                (b)(11) in accordance with the bylaws of the 
                Corporation.
                  (E) Appointed directors.--None of the 
                Directors appointed by the Secretary under 
                subsection (b)(2) shall be subject to approval 
                by the Board.
  (d) Chairperson.--The Chairperson of the Board shall--
          (1) be selected from among the Directors (other than 
        the CEO) by a majority vote of the Directors; and
          (2) subject to subsection (e), serve until replaced 
        by a majority vote of the Directors.
  (e) Terms.--
          (1) Initial terms.--The term of each Director 
        appointed, or nominated and selected, before the date 
        of transfer (other than the CEO) shall expire on the 
        date that is 2 years after the date of transfer.
          (2) Subsequent terms.--The term of each Director 
        appointed, or nominated and selected, on or after the 
        date of transfer (other than the CEO) shall be 4 years, 
        except as provided by paragraph (3).
          (3) Staggering.--The Board shall stagger the duration 
        of the terms of the initial Directors appointed, or 
        nominated and selected, after the date of transfer to 
        promote the stability of the Board.
          (4) Term limit.--Except as provided by subsection 
        (f)(3), a Director may not serve on the Board for more 
        than 8 years.
  (f) Vacancies.--
          (1) Before date of transfer.--Before the date of 
        transfer, a vacancy on the Board shall be filled in the 
        manner in which the original appointment or selection 
        was made.
          (2) After date of transfer.--After the date of 
        transfer, a vacancy on the Board shall be filled in the 
        manner in which the original appointment was made (in 
        the case of Directors appointed under subsection 
        (b)(2)) or in the manner described under subsection 
        (c)(2) (in the case of Directors nominated by 
        Nomination Panels or the Board).
          (3) Service until successor takes office.--A Director 
        may serve after the expiration of the Director's term 
        until a successor has been appointed or nominated and 
        selected.
  (g) Meetings and Quorum.--
          (1) Meetings.--
                  (A) In general.--The Board shall meet at the 
                call of the Chairperson (or as otherwise 
                provided in the bylaws) and, at a minimum, on a 
                quarterly basis.
                  (B) Initial meeting.--Not later than 90 days 
                after the date of enactment of this subtitle, 
                the Board shall hold its initial meeting.
                  (C) In-person meeting.--At least 1 meeting of 
                the Board each year shall be conducted in 
                person.
          (2) Quorum.--A quorum of the Board, consisting of a 
        majority of the Directors then in office, shall be 
        required to conduct any business of the Board.
          (3) Approval of board actions.--Except as otherwise 
        provided, the threshold for approving Board actions 
        shall be as set forth in the bylaws.
  (h) Removal of Directors.--A Director may be removed in 
accordance with section 90307(c) and the bylaws of the 
Corporation.

Sec. 90307. Fiduciary duties and qualifications of Directors

  (a) Fiduciary Duties.--The fiduciary duties of a Director 
shall be solely and exclusively to the Corporation.
  (b) Qualifications.--
          (1) In general.--Only a citizen of the United States 
        may be appointed or nominated as a Director.
          (2) Prohibitions.--An individual may not serve as a 
        Director if the individual--
                  (A) is an officer, agent, or employee of the 
                Corporation (other than the CEO);
                  (B) is, or has been within the preceding 2 
                years, a Member of Congress;
                  (C) is an elected official serving in a 
                State, local, or Tribal government;
                  (D) is an officer or employee of the Federal 
                Government or any State, local, or Tribal 
                government;
                  (E) is a director, officer, trustee, agent, 
                or employee of--
                          (i) a bargaining agent that 
                        represents employees of the 
                        Corporation;
                          (ii) an entity that has a material 
                        interest as a supplier, client, or user 
                        of the Corporation's services; or
                          (iii) any of the entities determined 
                        under section 90305(c);
                  (F) receives any form of compensation or 
                material benefit from an entity that has a 
                material interest as a supplier, client, or 
                user of the Corporation's services, excluding 
                compensation from a defined benefit plan 
                resulting from the individual's past 
                employment; or
                  (G) has or holds any other fiduciary duty, 
                legal obligation, office, employed position, or 
                material interest that would prevent the 
                individual from satisfying the requirements of 
                subsection (a) under the applicable laws of the 
                State in which the Corporation is incorporated.
          (3) Exception.--Subparagraphs (C) and (D) of 
        paragraph (2) shall not apply to an individual solely 
        because the individual is an elected member of a school 
        board or is employed by an institution of higher 
        education (as defined in section 101 of the Higher 
        Education Act of 1965 (20 U.S.C. 1001)).
  (c) Breach of Fiduciary Duty to Corporation.--
          (1) In general.--The Board shall remove any Director 
        who breaches a fiduciary duty to the Corporation--
                  (A) pursuant to procedures to be established 
                in the bylaws of the Corporation; and
                  (B) not later than 30 days after determining 
                that a breach has occurred.
          (2) Limited private right of action.--The Corporation 
        shall have the exclusive right to seek injunctive or 
        monetary relief (or both) against a Director or former 
        Director for a breach of a fiduciary duty to the 
        Corporation.
  (d) Prohibition on Indemnification and Certain Insurance.--
Notwithstanding section 90312 or any other provision of law, 
the Corporation shall neither indemnify nor procure insurance 
to indemnify any Director for liability relating to a breach of 
a fiduciary duty to the Corporation.

Sec. 90308. Bylaws and duties

  (a) In General.--The Board shall adopt and amend the bylaws 
of the Corporation.
  (b) Bylaws.--The bylaws of the Corporation shall include, at 
a minimum--
          (1) the duties and responsibilities of the Board 
        (including those described in subsection (c)), 
        officers, Advisory Board, and committees of the 
        Corporation; and
          (2) the operational procedures of the Corporation.
  (c) Duties and Responsibilities of Board.--The Board shall be 
responsible for actions of the Corporation, including--
          (1) adoption of an annual budget;
          (2) approval of a strategic plan, including updates 
        thereto, and other plans supporting the strategy laid 
        out in the strategic plan;
          (3) adoption of an annual action plan;
          (4) authorization of any form or instrument of 
        indebtedness, including loans and bond issues;
          (5) assessment, modification, and collection of 
        charges and fees for air traffic services in accordance 
        with the standards described in section 90313;
          (6) hiring and supervision of the CEO;
          (7) establishment and maintenance of an appropriately 
        funded reserve fund;
          (8) adoption of a code of conduct and code of ethics 
        for Directors, officers, agents, and employees of the 
        Corporation;
          (9) establishment of a process for ensuring that the 
        fiduciary duties of a Director are solely and 
        exclusively to the Corporation;
          (10) establishment of a process for the removal of a 
        Director, including the removal of a Director for 
        breach of a fiduciary duty to the Corporation; and
          (11) adoption of a process for filling vacancies on 
        the Board.

Sec. 90309. Committees of Board; independent auditors

  (a) Committees of Board.--The Board shall establish and 
maintain a Safety Committee, a Compensation Committee, a 
Technology Committee, and such other committees as the Board 
determines are necessary or appropriate to carry out the 
responsibilities of the Board effectively. Such committees 
shall be composed solely of Directors.
  (b) Independent Auditors.--The Board shall retain independent 
auditors to conduct annual audits of the Corporation's 
financial statements and internal controls.

Sec. 90310. Advisory Board

  (a) Establishment.--There shall be an Advisory Board of the 
Corporation.
  (b) Duties.--The Advisory Board--
          (1) shall conduct such activities as the Board 
        determines appropriate;
          (2) shall submit to the Board recommendations for 
        Directors to be nominated and selected under section 
        90306(b)(11); and
          (3) may, on its own initiative, study, report, and 
        make recommendations to the Board on matters relating 
        to the Corporation's provision of air traffic services 
        and associated safety considerations.
  (c) Membership.--
          (1) Number.--The Advisory Board shall consist of not 
        more than 15 individuals, who are citizens of the 
        United States, representing interested entities.
          (2) Representatives.--The members of the Advisory 
        Board shall include, at a minimum, representatives of 
        the following:
                  (A) Air carriers.
                  (B) General aviation.
                  (C) Business aviation.
                  (D) Commercial service airports.
                  (E) Operators and manufacturers of commercial 
                unmanned aircraft systems.
                  (F) Appropriate labor organizations.
                  (G) The Department of Defense.
                  (H) Small communities, including at least 1 
                community primarily served by a nonhub airport.
  (d) Structure; Terms.--The membership and structure of the 
Advisory Board, including the duration that individuals may 
serve on the Advisory Board, shall be determined by the Board 
in accordance with the bylaws of the Corporation.

Sec. 90311. Officers and their responsibilities

  (a) Chief Executive Officer.--
          (1) Hiring.--
                  (A) In general.--The Corporation shall have a 
                Chief Executive Officer, who shall be hired by 
                the Board to manage the Corporation.
                  (B) Qualifications.--The CEO shall be an 
                individual who--
                          (i) is a citizen of the United 
                        States;
                          (ii) satisfies the qualifications to 
                        serve as a Director under section 
                        90307; and
                          (iii) by reason of professional 
                        background and experience, is 
                        especially qualified to manage the 
                        Corporation.
          (2) Duties.--The CEO shall--
                  (A) be responsible for the management and 
                direction of the Corporation, including its 
                officers and employees, and for the exercise of 
                all powers and responsibilities of the 
                Corporation;
                  (B) establish Corporation offices and define 
                the responsibilities and duties of the offices, 
                with full authority to organize the Corporation 
                as required; and
                  (C) designate an officer of the Corporation 
                who is vested with the authority to act in the 
                capacity of the CEO if the CEO is absent or 
                incapacitated.
          (3) Scope of authority.--
                  (A) In general.--The CEO shall be subject to 
                the policy guidance of the Board, report to the 
                Board, and serve at the pleasure of the Board.
                  (B) Authority of board.--The Board may modify 
                or revoke actions of the CEO pursuant to 
                procedures set forth in the bylaws of the 
                Corporation.
  (b) Other Officers and Employees.--
          (1) In general.--The CEO shall appoint such other 
        officers and employees of the Corporation as the CEO 
        determines appropriate.
          (2) Chief operating officer; chief financial 
        officer.--An appointment of an individual as chief 
        operating officer or chief financial officer by the CEO 
        shall be subject to the approval of the Board.
          (3) Delegation of functions.--The CEO may delegate to 
        the other officers and employees of the Corporation any 
        of the functions of the Corporation.
          (4) Compensation.--Compensation for the CEO, chief 
        operating officer, and chief financial officer shall be 
        set by the Board.
  (c) Interim CEO.--
          (1) Hiring.--Not later than 60 days after the date of 
        the Secretary's appointment and selection of Directors 
        under section 90306(c)(1)(B), the Board shall hire an 
        Interim Chief Executive Officer who meets the 
        qualifications specified in subsection (a)(1)(B).
          (2) Authority and term.--
                  (A) Authority.--The Interim CEO shall--
                          (i) exercise the same authority as 
                        the CEO, including serving on the 
                        Board;
                          (ii) carry out the same duties as the 
                        CEO; and
                          (iii) be subject to the same 
                        prohibitions and limitations as the 
                        CEO.
                  (B) Term.--The Interim CEO shall serve until 
                the Board hires a CEO.
          (3) Statutory construction.--Nothing in this 
        subsection may be construed to restrict the ability of 
        the Board to hire the individual serving as the Interim 
        CEO to be the CEO.

Sec. 90312. Authority of Corporation

  (a) General Authority.--Except as otherwise provided in this 
subtitle, the Corporation--
          (1) shall have perpetual succession in its corporate 
        name unless dissolved by law;
          (2) may adopt and use a corporate seal;
          (3) may own, lease, use, improve, and dispose of such 
        property as the Corporation considers necessary to 
        carry out the purposes of the Corporation;
          (4) may contract with other parties;
          (5) may sue or be sued;
          (6) may be held liable under civil and criminal law;
          (7) may indemnify the Directors, including the 
        Interim CEO or CEO, and other officers, agents, and 
        employees of the Corporation; and
          (8) shall have such other corporate powers as are 
        necessary or appropriate to carry out the purposes of 
        this subtitle and of the Corporation.
  (b) Limitations.--
          (1) Business activities.--The Corporation may only 
        engage in business activities that are--
                  (A) related to carrying out air traffic 
                services; or
                  (B) ancillary or incidental to carrying out 
                such services.
          (2) Equity shares.--The Corporation may not issue or 
        sell equity shares in the Corporation.

Sec. 90313. Charges and fees for air traffic services

  (a) Assessment and Collection of Charges and Fees.--Beginning 
on the date of transfer, and subject to this section and 
section 90502, the Corporation may assess and collect charges 
and fees from air traffic services users for air traffic 
services provided by the Corporation in United States airspace 
or international airspace delegated to the United States.
  (b) Board Approval of Charges and Fees.--The Board shall--
          (1) approve a proposal for--
                  (A) an initial schedule of charges and fees 
                pursuant to subsection (g); and
                  (B) any change in the charges or fees;
          (2) provide air traffic services users and other 
        interested persons notice of a proposal approved under 
        paragraph (1) in a manner and form prescribed by the 
        Secretary; and
          (3) submit a proposal approved under paragraph (1) 
        (other than a proposal to decrease a charge or fee) to 
        the Secretary 90 days prior to the effective date of 
        the proposal in a manner and form prescribed by the 
        Secretary.
  (c) Secretarial Review.--
          (1) Public comment.--Upon receiving a proposal from 
        the Corporation under subsection (b)(3), the Secretary 
        shall solicit public comments on the proposal for a 30-
        day period.
          (2) Secretarial approval.--
                  (A) In general.--Not later than 15 days after 
                the last day of the 30-day public comment 
                period, the Secretary shall--
                          (i) approve the proposal upon 
                        determining that the proposal complies 
                        with the standards in subsection (d); 
                        or
                          (ii) disapprove the proposal upon 
                        determining that the proposal does not 
                        comply with the standards in subsection 
                        (d).
                  (B) Effectiveness of proposal.--If the 
                Secretary does not issue a timely decision 
                pursuant to subparagraph (A), the proposal 
                shall be deemed approved.
  (d) Standards.--The Secretary shall apply the following 
standards in reviewing a proposal from the Corporation under 
subsection (c):
          (1) The amount or type of charges and fees paid by an 
        air traffic services user may not--
                  (A) be determinant of the air traffic 
                services provided to the user; or
                  (B) adversely impact the ability of the user 
                to use or access any part of the national 
                airspace system.
          (2) Charges and fees shall be consistent with the 
        document titled ``ICAO's Policies on Charges for 
        Airports and Air Navigation Services'', Ninth Edition, 
        2012.
          (3) Charges and fees may not be discriminatory.
          (4) Charges and fees shall be consistent with United 
        States international obligations.
          (5) Certain categories of air traffic services users 
        may be charged on a flat fee basis so long as the 
        charge or fee is otherwise consistent with this 
        subsection.
          (6) Charges and fees may not be imposed for air 
        traffic services provided with respect to operations of 
        aircraft that qualify as public aircraft under sections 
        40102(a) and 40125.
          (7) Charges and fees may not be imposed for air 
        traffic services provided with respect to aircraft 
        operations conducted pursuant to part 91, 133, 135, 
        136, or 137 of title 14, Code of Federal Regulations.
          (8) Charges and fees may not be structured such that 
        air traffic services users have incentives to operate 
        in ways that diminish safety to avoid the charges and 
        fees.
          (9) Charges and fees, based on reasonable and 
        financially sound projections, may not generate 
        revenues exceeding the Corporation's current and 
        anticipated financial requirements in relation to the 
        provision of air traffic services.
  (e) Corporation's Financial Requirements.--In determining 
whether a proposal received from the Corporation under 
subsection (b) would generate revenues in compliance with 
subsection (d)(9), the Secretary shall consider costs and other 
liabilities of the Corporation, including--
          (1) costs incurred before the date of transfer;
          (2) operations and maintenance costs;
          (3) management and administrative costs;
          (4) depreciation costs;
          (5) interest costs and other expenses related to debt 
        servicing;
          (6) cash reserves or other requirements needed to 
        maintain credit ratings or comply with debt covenants; 
        and
          (7) any tax liability.
  (f) Payment of Charges and Fees.--
          (1) In general.--An air traffic services user shall 
        pay a charge or fee assessed by the Corporation under 
        subsection (a) for services rendered and any interest 
        and penalties assessed under paragraph (2).
          (2) Late payment or nonpayment.--The Corporation may 
        assess and collect interest and penalties for late 
        payment or nonpayment of a charge or fee assessed by 
        the Corporation under subsection (a).
          (3) Private right of action.--The Corporation may 
        file suit in any district court of the United States 
        having jurisdiction over the parties, without respect 
        to the amount in controversy and without regard to the 
        citizenship of the parties, to enforce this subsection 
        not later than 2 years after the date on which a claim 
        accrues. A claim accrues, under this paragraph, upon 
        the rendering of the relevant air traffic services by 
        the Corporation.
  (g) Initial Schedule.--Notwithstanding subsection (b)(3), the 
Corporation shall propose an initial schedule of charges and 
fees at least 180 days before the date of transfer.
  (h) Aircraft Operation Defined.--In this section, the term 
``aircraft operation'' means the movement of an aircraft 
beginning with the take-off of the aircraft and ending with the 
landing of the aircraft.

Sec. 90314. Preemption of authority over air traffic services

  (a) State Defined.--In this section, the term ``State'' means 
a State, the District of Columbia, and a territory or 
possession of the United States.
  (b) Preemption.--A State, political subdivision of a State, 
or political authority of at least 2 States may not enact or 
enforce a law, regulation, or other provision having the force 
and effect of law related to air traffic services.
  (c) Airport Owner or Operator.--Subsection (b) may not be 
construed to limit a State, political subdivision of a State, 
or political authority of at least 2 States that owns or 
operates a landing area from carrying out its proprietary 
powers and rights over the landing area.

Sec. 90315. Actions by and against Corporation

  (a) Jurisdiction for Legal Actions Generally.--
          (1) Jurisdiction of united states district courts.--
        The United States district courts shall have original 
        jurisdiction over all actions brought by or against the 
        Corporation, except as otherwise provided in this 
        subtitle.
          (2) Removal of actions in state courts.--Any action 
        brought in a State court to which the Corporation is a 
        party shall be removed to the appropriate United States 
        district court under the provisions of chapter 89 of 
        title 28.
  (b) Testimony of Corporation Employees.--
          (1) In general.--Except with the consent of the chief 
        legal officer of the Corporation, employees of the 
        Corporation may not provide expert opinion or expert 
        testimony in civil litigation related to the 
        Corporation.
          (2) Exceptions.--The Corporation may prescribe the 
        circumstances, if any, under which employees of the 
        Corporation may provide expert opinion or expert 
        testimony in civil litigation related to the 
        Corporation.

Sec. 90316. Transfer of Federal personnel to Corporation

  (a) Transfer of FAA Employees to Corporation.--
          (1) Process.--Not later than 180 days after the date 
        of enactment of this subtitle, the Secretary, after 
        meeting and conferring with the CEO and representatives 
        of the labor organizations recognized under section 
        7111 of title 5 as exclusive representatives of FAA 
        employees, shall commence a process to determine, 
        consistent with the purposes of this subtitle, which 
        activities and employees, or categories of employees, 
        of the FAA shall be transferred to the Corporation on 
        or before the date of transfer.
          (2) Determination; transfer.--The Secretary shall--
                  (A) not later than 180 days prior to the date 
                of transfer, complete the determination of 
                which activities, employees, or categories of 
                employees shall be transferred to the 
                Corporation under paragraph (1);
                  (B) upon completing the determination, notify 
                the CEO, the labor organizations recognized 
                under section 7111 of title 5 as exclusive 
                representatives of FAA employees, and all 
                affected employees of such determination; and
                  (C) on or before the date of transfer, 
                transfer such activities, employees, or 
                categories of employees.
  (b) Subsequent Transfer of Employees.--
          (1) In general.--
                  (A) Transfers from faa to corporation.--
                During the 180-day period beginning on the date 
                of transfer, the Secretary, after meeting and 
                conferring with the CEO and representatives of 
                the certified labor organizations recognized 
                under section 91105 and labor organizations 
                recognized under section 7111 of title 5 as 
                exclusive representatives of FAA employees, may 
                transfer an employee from the FAA to the 
                Corporation if the Secretary, after meeting and 
                conferring with the CEO and the 
                representatives, finds that the determination 
                with respect to the employee under subsection 
                (a) was inconsistent with the purposes of this 
                subtitle.
                  (B) Transfers from corporation to faa.--
                During the 180-day period beginning on the date 
                of transfer, the Secretary, after meeting and 
                conferring with the CEO and representatives of 
                the certified labor organizations recognized 
                under section 91105 and labor organizations 
                recognized under section 7111 of title 5 as 
                exclusive representatives of FAA employees, may 
                transfer an employee from the Corporation to 
                the FAA if the Secretary, after the 
                consultation with the CEO and the 
                representatives, finds that the determination 
                with respect to the employee under subsection 
                (a) was inconsistent with the purposes of this 
                subtitle.
          (2) Reemployment of federal employees.--An employee 
        transferred from the Corporation to the FAA under this 
        subsection shall be entitled to the same rights and 
        benefits, and reemployment, in the same manner as if 
        covered by section 3582 of title 5 notwithstanding 
        section 8347(o), 8713, or 8914 of such title.
          (3) Election of benefits for employees subject to 
        delayed transfer to corporation.--In the case of an 
        employee of the FAA transferred to the Corporation 
        under this subsection, such employee shall be afforded 
        the opportunity to make the election provided under 
        section 91102(b) with respect to benefits.
  (c) Corporation Employee Benefits.--At least 180 days before 
the date of transfer, the Corporation shall establish a 
compensation and benefits program for--
          (1) employees hired by the Corporation after the date 
        of transfer; and
          (2) employees that make the election under section 
        91102(b)(1)(A)(ii).
  (d) Protections for Employees Not Transferred to 
Corporation.--For those employees of the FAA directly involved 
in the operation of air traffic services who are not 
transferred to the Corporation pursuant to subsection (a) or 
who transferred back to the FAA pursuant to subsection (b), the 
Secretary shall provide to such employees compensation and 
benefits consistent with the applicable collective-bargaining 
agreement that are not less than the level of compensation and 
benefits provided to such FAA employees prior to the date of 
transfer unless mutually agreed to by the FAA and 
representatives of the certified labor organization.
  (e) Suitability, Clearances, and Medical Qualifications.--All 
federally issued or federally required credentials, 
certificates, clearances, medical qualifications, access 
rights, substance testing results, and any other Federal 
permissions or approvals held by any employee of the FAA in the 
operation of air traffic services that are valid and effective 
on the day prior to the date of transfer shall remain valid and 
effective after the date of transfer--
          (1) unless revoked for cause; or
          (2) until equivalent or substantially equivalent 
        credentials, certificates, clearances, medical 
        qualifications, access rights, substance testing 
        results, and any other Federal permissions or approvals 
        have been issued to the employee on or after the date 
        of transfer.
  (f) Transition Agreements.--
          (1) Bipartite agreement.--
                  (A) Meetings.--At least 180 days before the 
                date of transfer, the Corporation shall meet 
                with the labor organizations recognized under 
                section 7111 of title 5 as exclusive 
                representatives of FAA employees to resolve 
                employment-related transition matters that 
                affect employees represented by those labor 
                organizations and that are not otherwise 
                covered under this section.
                  (B) Duty to bargain in good faith.--The 
                Corporation and the labor organizations 
                described in subparagraph (A) (in this 
                subsection referred to as the ``parties'') 
                shall be subject to the duty to bargain in good 
                faith under chapter 911 in any meetings 
                pursuant to this paragraph.
                  (C) Dispute resolution procedures.--If the 
                parties fail to reach an agreement over the 
                initial or subsequent employment-related 
                transition issues not otherwise covered under 
                this section, the matters shall be subject to 
                the dispute resolution procedures established 
                under subsections (a), (b), and (e) of section 
                91107.
          (2) Tripartite agreement.--
                  (A) Meetings.--At least 1 year before the 
                date of transfer, the Corporation and the FAA 
                shall meet with the labor organizations 
                recognized under section 7111 of title 5 as 
                exclusive representatives of FAA employees to 
                resolve transition matters related to the 
                separation of air traffic services from the FAA 
                pursuant to this subtitle that affect employees 
                represented by those labor organizations and 
                that are not otherwise covered under this 
                section.
                  (B) Duty to bargain in good faith.--To the 
                extent applicable, the Corporation and the 
                labor organizations described in subparagraph 
                (A) shall be subject to the duty to bargain in 
                good faith under chapter 911 in any meetings 
                pursuant to this paragraph.
                  (C) Dispute resolution procedures.--If the 
                Corporation and the certified labor 
                organizations described in subparagraph (A) 
                fail to reach an agreement over the initial or 
                subsequent transition issues related to the 
                separation of air traffic services from the 
                FAA, not otherwise covered under this section, 
                the matters shall be subject to the dispute 
                resolution procedures established under 
                subsections (a), (b), and (e) of section 91107.

Sec. 90317. Transfer of facilities to Corporation

  (a) Inventory of FAA Property and Facilities.--At least 1 
year before the date of transfer, the Secretary, in 
consultation with the CEO, shall identify the licenses, 
patents, software rights, and real and personal property, 
including air navigation facilities (as defined in section 
40102(a)) of the United States under FAA jurisdiction, that are 
necessary and appropriate for the Corporation to carry out the 
air traffic services transferred to the Corporation under this 
subtitle.
  (b) Transfer of Federal Property.--
          (1) Conveyance of property to corporation.--On the 
        date of transfer, the Secretary shall convey, without 
        charge, all right, title, and interest of the United 
        States in, and the use, possession, and control of, 
        properties identified under subsection (a).
          (2) Sale of property by corporation after date of 
        transfer.--If the Corporation sells any of the property 
        conveyed to the Corporation under paragraph (1), the 
        Corporation shall use the proceeds received from the 
        sale of such property for the acquisition or 
        improvement of air navigation facilities or other 
        capital assets.
          (3) Reversionary interest.--Any conveyance of real 
        property under this section located at an FAA technical 
        facility shall be subject to the condition that all 
        right, title, and interest in the real property shall 
        revert to the United States and be placed under the 
        administrative control of the Secretary if--
                  (A) the Corporation determines the real 
                property is no longer necessary to carry out 
                the air traffic services transferred to the 
                Corporation under this subtitle; and
                  (B) the Secretary determines the reversion is 
                necessary to protect the interests of the 
                United States.
          (4) Safety air traffic services equipment in remote 
        locations.--
                  (A) Maintenance by corporation.--Any 
                equipment identified pursuant to subsection (a) 
                and conveyed to the Corporation pursuant to 
                paragraph (1) that is located in a 
                noncontiguous State of the United States and is 
                critical to the safe provision of air traffic 
                services in that State may not be sold and 
                shall be maintained and, as determined 
                necessary by the Corporation, upgraded by the 
                Corporation.
                  (B) Equipment critical to safe provision of 
                air traffic services.--For purposes of this 
                paragraph, equipment critical to the safe 
                provision of air traffic services includes GPS 
                receivers, data link transceivers, ADS-B, 
                multi-function displays, flight information 
                services, moving map displays, terrain 
                databases, airport lighting, and mountain pass 
                cameras.
  (c) Consolidation and Realignment of Transferred Services and 
Facilities.--
          (1) In general.--At least 180 days before the date of 
        transfer, and subject to section 91107, the 
        Corporation, in consultation with representatives of 
        labor organizations representing operations and 
        maintenance employees of the air traffic control 
        system, shall establish a process for the realignment 
        and consolidation of services and facilities to be 
        transferred to the Corporation from the FAA.
          (2) Moratorium.--Except as otherwise provided, there 
        shall be a moratorium on any effort by the 
        Administrator or the Corporation to consolidate or 
        realign air traffic services or facilities until the 
        process required by paragraph (1) is established.

Sec. 90318. Approval of transferred air navigation facilities and other 
                    equipment

  On the date of transfer, the Corporation is authorized to 
operate all air navigation facilities and other equipment 
conveyed pursuant to section 90317 without additional approval 
or certification by the Secretary.

Sec. 90319. Use of spectrum systems and data

  Beginning on the date of transfer, the Secretary shall 
provide the Corporation with such access to the spectrum 
systems used by the FAA before the date of transfer to provide 
air traffic services, and any successor spectrum systems, and 
to the data from such systems, as is necessary to enable the 
Corporation to provide air traffic services under this 
subtitle.

Sec. 90320. Transition plan

  (a) Transition Team.--Not later than 120 days after the date 
of enactment of this subtitle, the Secretary, after meeting and 
conferring with the CEO or Interim CEO, shall establish a 
transition team to develop, consistent with this subtitle, a 
transition plan to be reviewed by the Secretary and, if 
approved, utilized by the Department of Transportation during 
the period in which air traffic services are transferred from 
the FAA to the Corporation.
  (b) Membership.--The transition team shall consist of 12 
individuals, who are citizens of the United States, as follows:
          (1) 5 representatives appointed by the Secretary, 
        including--
                  (A) the Deputy Administrator of the FAA;
                  (B) the Director of the FAA Mike Monroney 
                Aeronautical Center;
                  (C) the Director of the FAA William J. Hughes 
                Technical Center; and
                  (D) 2 representatives from the Office of 
                Management and Budget, appointed with the 
                concurrence of the Director of the Office of 
                Management and Budget.
          (2) 1 representative appointed by the exclusive 
        bargaining representative of air traffic controllers 
        certified under section 7111 of title 5.
          (3) 1 representative appointed by the exclusive 
        bargaining representative for airway transportation 
        systems specialists in the Air Traffic Organization 
        technical operations services certified under section 
        7111 of title 5.
          (4) 5 representatives appointed by the CEO.
  (c) Transition Plan.--
          (1) In general.--Not later than 45 days after the 
        establishment of the transition team, the transition 
        team shall develop and submit to the Secretary an 
        executable transition plan.
          (2) Contents.--The transition plan shall set forth a 
        plan for the Secretary, in consultation with the CEO or 
        Interim CEO, to--
                  (A) identify property, facilities, equipment, 
                and obligations, contractual or otherwise, 
                related to the provision of air traffic 
                services; and
                  (B) safely and efficiently transfer Federal 
                personnel, property, facilities, equipment, and 
                obligations, contractual and otherwise, related 
                to the provision of air traffic services to the 
                Corporation on or before the date of transfer.
  (d) Secretarial Review.--
          (1) In general.--Not later than 30 days after receipt 
        of the transition plan, the Secretary shall review and, 
        if appropriate, approve the plan.
          (2) Disapproval.--If the Secretary does not approve a 
        submitted transition plan, the transition team shall 
        revise the plan and resubmit it to the Secretary not 
        later than 30 days after receiving notice of the 
        disapproval by the Secretary.
  (e) Termination.--The transition team shall terminate upon 
approval of a transition plan by the Secretary.

        CHAPTER 905--REGULATION OF AIR TRAFFIC SERVICES PROVIDER

Sec.
90501. Safety oversight and regulation of Corporation.
90502. Resolution of disputes concerning air traffic services charges 
          and fees.
90503. International agreements and activities.
90504. Availability of safety information.
90505. Reporting of safety violations to FAA.
90506. Insurance requirements.

Sec. 90501. Safety oversight and regulation of Corporation

  (a) Performance-based Regulations and Minimum Safety 
Standards.--After consultation with the Corporation and the 
FAA's certified bargaining representatives and before the date 
of transfer, the Secretary shall--
          (1) prescribe performance-based regulations and 
        minimum safety standards for the operation of air 
        traffic services by the Corporation;
          (2) prescribe performance-based regulations and 
        minimum safety standards for the certification and 
        operation of air navigation facilities (other than 
        facilities that may be operated without additional 
        approval or certification pursuant to section 90318); 
        and
          (3) identify policies and other administrative 
        materials of the FAA in effect before the date of 
        transfer for providing air traffic services that will 
        apply to the Corporation.
  (b) Safety Management System.--
          (1) In general.--The regulations and standards 
        prescribed pursuant to subsection (a) shall include a 
        safety management system for air traffic services 
        provided by the Corporation.
          (2) Foundation.--The safety management system shall 
        be based on the safety management system used by the 
        Air Traffic Organization of the FAA before the date of 
        transfer.
          (3) Use by corporation.--Beginning on the date of 
        transfer, the Corporation shall use the safety 
        management system, including any changes thereto, when 
        assessing and managing risks in all procedures, 
        processes, and practices necessary to provide air 
        traffic services.
          (4) FAA oversight.--To the maximum extent 
        practicable, for at least 2 years after the date of 
        transfer, the Air Traffic Safety Oversight Service of 
        the FAA shall employ the same oversight processes and 
        procedures in use before the date of transfer.
  (c) Proposals to Modify Air Traffic Management Procedures, 
Assignments, and Classifications of Airspace.--
          (1) Submission of proposals to secretary.--The 
        Corporation or another interested party may submit to 
        the Secretary a proposal to modify--
                  (A) air traffic management procedures, 
                assignments, classifications of airspace, or 
                other actions affecting airspace access that 
                are developed pursuant to the safety management 
                system; and
                  (B) FAA policies and other administrative 
                materials identified under subsection (a)(2).
          (2) Review and approval of proposals.--The 
        regulations and standards prescribed under subsection 
        (a)(1) shall include a process for expedited review and 
        approval of a proposal received under paragraph (1).
          (3) Standard for approval.--The Secretary shall 
        approve a proposal received under paragraph (1) if the 
        Secretary determines that the proposal complies with 
        the regulations and standards prescribed under 
        subsection (a)(1) and is otherwise consistent with the 
        public interest, including that the proposal would not 
        materially reduce access to a public-use airport.
          (4) Approvals and disapprovals.--
                  (A) In general.--During the 45-day period 
                beginning on the date of receipt of a proposal 
                under paragraph (1), the Secretary shall 
                approve or disapprove the proposal.
                  (B) Written explanation.--If the Secretary 
                disapproves the proposal, the Secretary shall 
                provide--
                          (i) a written explanation of the 
                        Secretary's decision, including--
                                  (I) any instances of 
                                inconsistency with the 
                                regulations and standards 
                                prescribed under subsection 
                                (a)(1); and
                                  (II) any other information 
                                that formed the basis for the 
                                Secretary's decision; and
                          (ii) a description of any 
                        modifications to the proposal that are 
                        necessary to obtain approval.
          (5) Failure to act.--If the Secretary fails to act on 
        a proposal received under paragraph (1) during the 45-
        day period described in paragraph (4)(A), the 
        Corporation or other party making the proposal shall be 
        entitled to a writ of mandamus in a Federal district 
        court with venue.
  (d) Judicial Review.--
          (1) In general.--Any decision made by the Secretary 
        to approve or disapprove a proposal received under 
        subsection (c)(1) shall be subject to judicial review 
        pursuant to subsections (a), (b), (d), and (e) of 
        section 46110.
          (2) Standard of review.--
                  (A) Disapprovals.--In the case of a petition 
                filed under section 46110(a) to review a 
                decision of the Secretary that disapproves a 
                proposal received from the Corporation under 
                subsection (c)(1), the court shall, without 
                deference to the Secretary's determination, 
                review de novo the record to determine if the 
                Secretary's determination is consistent with 
                the regulations and standards prescribed under 
                subsection (a)(1).
                  (B) Approvals.--In the case of a petition 
                filed under section 46110(a) to review a 
                decision of the Secretary that approves a 
                proposal received from the Corporation under 
                subsection (c)(1), the court may overturn the 
                approval only upon a finding of clear error or 
                an abuse of discretion.
  (e) Compilation.--
          (1) Establishment.--The Corporation shall establish 
        and maintain a compilation of the policies and other 
        materials identified under subsection (a)(2).
          (2) Updates.--The Corporation shall update the 
        compilation each time a proposal described in 
        subsection (c)(1)(B) is approved.
          (3) Publication.--The Corporation shall make the 
        compilation available to the public.
  (f) Special Rules for Proposals Affecting Certain Airspace.--
The regulations and standards prescribed under subsection 
(a)(1) shall include procedures (including advance submission 
of necessary supporting data, analysis, and documentation) for 
the Secretary to evaluate, at least 180 days before its 
submission under subsection (c)(1), a proposal for an airspace 
change that would affect airspace that is--
          (1) within an area designated as a ``Metroplex'' by 
        the FAA as of March 30, 2017;
          (2) within an area subject to a major, large-scale 
        airspace redesign project; or
          (3) adjacent to or containing special use airspace.
  (g) Exempted Airspace Actions.--The requirements of this 
section shall not apply to--
          (1) temporary airspace actions directed by the 
        Administrator or Secretary;
          (2) airspace actions as described in section 90904; 
        or
          (3) certain emergency circumstances, as defined by 
        the Secretary by regulation.
  (h) Delegation.--Notwithstanding section 90303(b), and except 
for the process and procedures required by section 90703(b), 
the Secretary may delegate safety oversight functions to the 
Administrator.

Sec. 90502. Resolution of disputes concerning air traffic services 
                    charges and fees

  (a) Authority to Request Secretary's Determination.--
          (1) In general.--The Secretary shall issue a 
        determination as to whether a charge or fee assessed by 
        the Corporation for the use of air traffic services in 
        United States airspace or international airspace 
        delegated to the United States is correct if a written 
        complaint for such determination is filed with the 
        Secretary by an air traffic services user not later 
        than 60 days after the air traffic services user 
        receives an assessment or invoice from the Corporation.
          (2) Treatment of interest and penalties.--In this 
        section, the terms ``charge'' and ``fee'' include any 
        interest and penalty relating thereto.
  (b) Procedural Regulations.--At least 270 days before the 
date of transfer, the Secretary shall publish in the Federal 
Register final regulations, policy statements, or guidelines 
establishing the procedures for acting upon written complaints 
filed under subsection (a)(1) and requests of the Corporation 
pursuant to subsection (e)(3).
  (c) Determination of Correctness.--In determining under 
subsection (a)(1) whether a charge or fee is correct, the 
Secretary shall determine only if the charge or fee is 
consistent with approved charges or fees pursuant to section 
90313.
  (d) Decisions by Secretary.--The final regulations, policy 
statements, or guidelines required in subsection (b) shall 
provide for the following:
          (1) Not later than 90 days after an air traffic 
        services user files with the Secretary a written 
        complaint relating to an assessed or invoiced air 
        traffic services charge or fee, the Secretary shall 
        issue a final order determining whether the charge or 
        fee is correct.
          (2) Not later than 30 days after such complaint is 
        filed with the Secretary, the Secretary shall dismiss 
        the complaint if no significant dispute exists or shall 
        assign the matter to an administrative law judge. 
        Thereafter, the matter shall be handled in accordance 
        with part 302 of title 14, Code of Federal Regulations, 
        or as modified by the Secretary, to ensure an orderly 
        disposition of the matter within the 90-day period 
        referred to in paragraph (1) and any specifically 
        applicable provisions of this section.
          (3) The administrative law judge shall issue a 
        recommended decision not later than 45 days after the 
        complaint is assigned or within such shorter period as 
        the Secretary may specify.
          (4) If the Secretary, upon the expiration of 90 days 
        after the filing of the complaint, has not issued a 
        final order, the decision of the administrative law 
        judge shall be deemed to be the final order of the 
        Secretary.
          (5) Any party to the dispute may seek review of a 
        final order of the Secretary under this subsection in 
        the Circuit Court of Appeals for the District of 
        Columbia Circuit or the court of appeals in the circuit 
        with venue.
          (6) Any findings of fact in a final order of the 
        Secretary under this subsection, if supported by 
        substantial evidence, shall be conclusive if challenged 
        in a court pursuant to this subsection. No objection to 
        such a final order may be considered by the court 
        unless objection was urged before an administrative law 
        judge or the Secretary at a proceeding under this 
        subsection or, if not so urged, unless there were 
        reasonable grounds for failure to do so.
  (e) Payment Under Protest; Guarantee of Air Traffic Services 
User Access.--
          (1) Payment under protest.--
                  (A) In general.--Any charge or fee that is 
                the subject of a complaint that is not 
                dismissed by the Secretary shall be paid by the 
                complainant air traffic services user to the 
                Corporation under protest.
                  (B) Referral or credit.--Any amounts paid 
                under this subsection by a complainant air 
                traffic services user to the Corporation under 
                protest shall be subject to refund or credit to 
                the air traffic services user in accordance 
                with directions in the final order of the 
                Secretary within 30 days of such order.
                  (C) Timely repayment.--In order to ensure the 
                timely repayment, with interest, of amounts in 
                dispute determined not to be correct by the 
                Secretary, the Corporation shall obtain a 
                letter of credit, or surety bond, or other 
                suitable credit facility, equal to the amount 
                in dispute that is due during the 90-day period 
                referred to in subsection (d)(1), plus 
                interest, unless the Corporation and the air 
                traffic services user agree otherwise.
                  (D) Deadline.--The letter of credit, or 
                surety bond, or other suitable credit facility 
                shall be provided to the Secretary not later 
                than 20 days after the filing of the complaint 
                and shall remain in effect for 30 days after 
                the issuance of a timely final order by the 
                Secretary determining whether such charge or 
                fee is correct.
          (2) Guarantee of air traffic services user access.--
        Contingent upon an air traffic services user's 
        compliance with the requirements of paragraph (1) and 
        pending the issuance of a final order by the Secretary 
        determining the correctness of a charge or fee that is 
        the subject of a complaint filed under subsection 
        (a)(1), the Corporation may not withhold air traffic 
        services as a means of enforcing the charge or fee.
          (3) Noncompliance.--Prior to the issuance of a final 
        order by the Secretary determining the correctness of a 
        charge or fee that is the subject of a complaint filed 
        under subsection (a)(1), if an air traffic services 
        user does not comply with the requirements of paragraph 
        (1), the Corporation shall withhold air traffic 
        services from the user if the Corporation requests and 
        receives approval from the Secretary to withhold air 
        traffic services.

Sec. 90503. International agreements and activities

  (a) Consistency With International Obligations and Laws of 
Other Countries.--The Corporation shall provide air traffic 
services under this subtitle in a manner that is consistent 
with any obligation assumed by the United States in a treaty, 
convention, or agreement that may be in force between the 
United States and a foreign country or foreign countries or 
between the United States and an international organization, 
and shall take into consideration any applicable laws and 
requirements of foreign countries.
  (b) Prohibition.--The Corporation may not negotiate on behalf 
of or otherwise represent the United States before any foreign 
government or international organization.

Sec. 90504. Availability of safety information

  (a) Safety Information.--The Corporation shall make available 
to air traffic services users and the public--
          (1) the same type of safety information made 
        available by the FAA before the date of transfer;
          (2) any additional safety information needed by air 
        traffic services users to operate safely; and
          (3) any updates or revisions to the safety 
        information referred to in paragraphs (1) and (2).
  (b) Meteorological Services; Aeronautical Charts.--The 
Corporation may provide for the dissemination of available 
aviation-related meteorological information and aeronautical 
charts to air traffic services users.

Sec. 90505. Reporting of safety violations to FAA

  (a) In General.--In a manner, form, and process prescribed by 
the Administrator, the Corporation shall report to the 
Administrator complaints or instances of--
          (1) noncompliance with or deviations from air traffic 
        control clearances or instructions;
          (2) noncompliant operations in controlled airspace or 
        special use airspace; and
          (3) any other observed activities endangering persons 
        or property in the air or on the ground.
  (b) Assistance in Enforcement Actions.--The Corporation shall 
provide necessary assistance in any enforcement action taken by 
the Administrator resulting from a report of the Corporation or 
another person or entity.
  (c) Statutory Construction.--This section may not be 
construed to limit the authority of the Administrator to 
undertake enforcement actions upon the Administrator's 
initiative.

Sec. 90506. Insurance requirements

  The Corporation shall maintain adequate liability insurance 
policies and coverages, as determined by the Secretary, 
including complete indemnification of employees of the 
Corporation for acts within the scope of employment.

 CHAPTER 907--GENERAL RIGHTS OF ACCESS TO AIRSPACE, AIRPORTS, AND AIR 
   TRAFFIC SERVICES VITAL FOR ENSURING SAFE OPERATIONS FOR ALL USERS

Sec.
90701. Access to airspace.
90702. Access to airports.
90703. Contract tower service after date of transfer.
90704. Availability of safety information to general aviation operators.
90705. Special rules and appeals process for air traffic management 
          procedures, assignments, and classifications of airspace.
90706. Definitions.

Sec. 90701. Access to airspace

  The Secretary shall take such actions as are necessary to 
ensure that an air traffic services user is not denied access 
to airspace or air traffic services on the basis that the user 
is exempt from charges and fees under section 90313.

Sec. 90702. Access to airports

  In carrying out section 90501(c)(3), the Secretary shall 
determine whether a proposal would materially reduce access to 
a public-use airport, including a general aviation or rural 
airport.

Sec. 90703. Contract tower service after date of transfer

  (a) Transfer of Contract Tower Agreements to Corporation.--In 
carrying out section 91302(e), the Secretary shall take such 
actions as are necessary to ensure that the Corporation assumes 
the contract and other obligations associated with the 
operation of an air traffic control tower that, prior to the 
date of transfer, was operated under a contract pursuant to 
section 47124.
  (b) Special Rules for Proposals Relating to Operation of 
Contract Towers.--
          (1) In general.--The regulations and standards 
        prescribed under section 90501(a)(1) shall include 
        procedures for the Secretary to evaluate, under section 
        90501(c), a proposal for an airspace change, including 
        an airspace reclassification, that results from the 
        proposed closure of a tower that is operating under a 
        contract with the Corporation and that, prior to the 
        date of transfer, was operated under a contract with 
        the Secretary pursuant to section 47124.
          (2) Procedures.--The procedures required pursuant to 
        paragraph (1) shall include--
                  (A) the advance submission by the Corporation 
                of necessary supporting data, analysis, and 
                documentation related to--
                          (i) the safety risk management 
                        assessment of the proposed contract 
                        tower closure;
                          (ii) an assessment of the impact of 
                        the proposed closure on the operation 
                        of the national airspace system;
                          (iii) an assessment of the impact of 
                        the proposed closure on local 
                        communities, including with respect to 
                        air service;
                          (iv) an assessment, in consultation 
                        with the Secretary of Defense and the 
                        Secretary of Homeland Security, as 
                        appropriate, of any impact of the 
                        proposed closure on military aviation 
                        readiness and training, homeland 
                        security aviation operations, emergency 
                        management and disaster aviation 
                        operations, and law enforcement 
                        aviation operations; and
                          (v) any other safety or operational 
                        information the Secretary determines to 
                        be necessary to understand the safety 
                        impact of the proposed closure; and
                  (B) a process to receive input from the 
                public, impacted air traffic services users, 
                local communities, and the airport operator of 
                the airport where the contract tower proposed 
                to be closed is located.

Sec. 90704. Availability of safety information to general aviation 
                    operators

  In carrying out section 90504, the Corporation shall ensure 
that the safety information referenced in that section is made 
available to general aviation operators.

Sec. 90705. Special rules and appeals process for air traffic 
                    management procedures, assignments, and 
                    classifications of airspace

  (a) In General.--If the Corporation proposes to modify, 
reduce, decommission, or eliminate an air traffic service or 
air navigation facility that would result in the loss of or 
material reduction in access to a public-use airport or 
adjacent airspace for any class, category, or type of aircraft 
or aircraft operation, as determined by the Secretary, the 
Secretary shall designate an officer to issue a notice in the 
Federal Register and establish a docket that includes--
          (1) a copy of the Corporation's proposal;
          (2) available data on the usage of the affected air 
        traffic service or air navigation facility;
          (3) an assessment of the designated officer on the 
        effects of the proposal; and
          (4) an assessment of the designated officer on any 
        proposed action to mitigate the loss of or material 
        reduction in access to the public-use airport or 
        adjacent airspace.
  (b) Proceeding.--The designated officer shall provide an 
opportunity for public comment on the proposal for a period of 
at least 60 days.
  (c) Decision.--Not later than 30 days after the last day of 
the public comment period, the designated officer shall--
          (1) determine whether the proposal is in the public 
        interest, including whether any material reduction in 
        access to a public-use airport or adjacent airspace has 
        been mitigated to the maximum extent practicable; and
          (2) approve or disapprove the proposal on that basis.
  (d) Relationship to Other Requirements.--Notwithstanding 
section 90501(c), a proposal described in subsection (a)--
          (1) shall be subject to the process established in 
        this section; and
          (2) may not be implemented unless approved under this 
        section.
  (e) Appeals and Secretarial Review.--
          (1) Written petition for review.--A petition for an 
        appeal of a decision of the designated officer under 
        subsection (c) shall be submitted in writing to the 
        Secretary not later than 30 days after the date of the 
        decision.
          (2) Secretarial review.--The Secretary shall review 
        and make a determination with respect to a timely filed 
        petition under paragraph (1) not later than 30 days 
        after the date of receipt of the petition.
  (f) Decisional Standards.--In making a determination under 
this section, neither the Secretary nor the designated officer 
may consider any factor not directly germane to--
          (1) the safe operation or navigation of an aircraft; 
        or
          (2) the sufficiency of mitigation efforts related to 
        a material reduction in access to a public-use airport 
        or adjacent airspace.
  (g) Judicial Review.--
          (1) In general.--Any determination made by the 
        Secretary under subsection (e)(2) shall be subject to 
        judicial review pursuant to subsections (a), (b), (d), 
        and (e) of section 46110.
          (2) Standard of review.--
                  (A) Disapprovals.--In the case of a petition 
                filed under section 46110(a) to review a 
                determination of the Secretary that disapproves 
                a proposal, the court shall, without deference 
                to the Secretary's determination, review de 
                novo the record to determine if the Secretary's 
                determination is in the public interest.
                  (B) Approvals.--In the case of a petition 
                filed under section 46110(a) to review a 
                determination of the Secretary that approves a 
                proposal, the court may overturn the approval 
                only upon a finding of clear error or an abuse 
                of discretion.

Sec. 90706. Definitions

  In this chapter, the following definitions apply:
          (1) Material reduction.--The term ``material 
        reduction'' means, with respect to access to a public-
        use airport, including a general aviation or rural 
        airport, a materially diminished ability to safely 
        operate or navigate to or from the airport or adjacent 
        airspace during a time of day, weather condition, or 
        season of the year.
          (2) Rural airport.--The term ``rural airport'' means 
        a public-use airport located in a rural area (as that 
        term is defined in section 520 of the Housing Act of 
        1949 (42 U.S.C. 1490)).

   CHAPTER 909--CONTINUITY OF AIR TRAFFIC SERVICES TO DEPARTMENT OF 
                   DEFENSE AND OTHER PUBLIC AGENCIES

Sec.
90901. Continuity of air traffic services provided by Department of 
          Defense.
90902. Military and other public aircraft exempt from user fees.
90903. Air traffic services for Federal agencies.
90904. Emergency powers of Armed Forces.
90905. Adherence to international agreements related to operations of 
          Armed Forces.
90906. Primacy of Armed Forces in times of war.
90907. Cooperation with Department of Defense and other Federal agencies 
          after date of transfer.

Sec. 90901. Continuity of air traffic services provided by Department 
                    of Defense

  After the date of transfer, the Department of Defense, as 
directed by the President, is authorized and permitted to 
provide air traffic services within United States airspace and 
international airspace delegated to the United States.

Sec. 90902. Military and other public aircraft exempt from user fees

  The Corporation may not impose charges or fees for operations 
of aircraft owned or operated by the Armed Forces or other 
aircraft that qualify as public aircraft under sections 
40102(a) and 40125.

Sec. 90903. Air traffic services for Federal agencies

  Before the date of transfer, the Secretary shall establish 
processes, requirements, procedures, and regulations and take 
any other measure necessary, consistent with the purposes of 
this subtitle, to ensure that all United States Government 
activities supported by the FAA's operation of air traffic 
services as of the date of transfer receive support from the 
Corporation after the date of transfer and on an ongoing basis.

Sec. 90904. Emergency powers of Armed Forces

  The requirements of section 90501 shall not apply to airspace 
actions necessitated by an exercise of authority under section 
40106.

Sec. 90905. Adherence to international agreements related to operations 
                    of Armed Forces

  In carrying out section 90503, the Corporation shall ensure 
that the obligations described in that section include 
obligations related to operations of the Armed Forces.

Sec. 90906. Primacy of Armed Forces in times of war

  The President may make temporary transfers to the Secretary 
of Defense pursuant to section 40107(b).

Sec. 90907. Cooperation with Department of Defense and other Federal 
                    agencies after date of transfer

  At least 1 year prior to the date of transfer, the 
Corporation, the Department of Transportation, and each Federal 
department or agency supported by the FAA's operation of air 
traffic services, including the Armed Forces, shall enter into 
a tripartite agreement to--
          (1) ensure cooperation between the Corporation and 
        the department or agency on the delivery of air traffic 
        services;
          (2) facilitate the safe provision of air traffic 
        services to the department or agency; and
          (3) address how the Corporation and the department or 
        agency will coordinate and communicate on the day-to-
        day operations of the national airspace system.

                    CHAPTER 911--EMPLOYEE MANAGEMENT

Sec.
91101. Definitions.
91102. Employee management and benefits election.
91103. Labor and employment policy.
91104. Bargaining units.
91105. Recognition of labor organizations.
91106. Collective-bargaining agreements.
91107. Collective-bargaining dispute resolution.
91108. Potential and pending grievances, arbitrations, and settlements.
91109. Prohibition on striking and other activities.
91110. Legal action.

Sec. 91101. Definitions

  In this chapter, the following definitions apply:
          (1) Agency.--The term ``Agency'' means, as the 
        context requires, the Department of Transportation or 
        the FAA.
          (2) Air traffic controller.--
                  (A) In general.--The term ``air traffic 
                controller'' means an employee of the 
                Corporation who, in an air traffic control 
                facility or flight service station facility--
                          (i) is actively engaged--
                                  (I) in the separation and 
                                control of air traffic; or
                                  (II) in providing preflight, 
                                inflight, or airport advisory 
                                service to aircraft operators; 
                                or
                          (ii) is the immediate supervisor of 
                        any employee described in clause (i).
                  (B) Limitation.--Notwithstanding subparagraph 
                (A), the definition of ``air traffic 
                controller'' for purposes of section 8336(e) of 
                chapter 83 of title 5 and section 8412(e) of 
                chapter 84 of such title shall mean only 
                employees actively engaged in the separation of 
                air traffic and the immediate supervisors of 
                such employees, as set forth in section 
                8331(30) of such title, and section 8401(35) of 
                such title.
          (3) Authority.--The term ``Authority'' means the 
        Federal Labor Relations Authority, as described in 
        section 7104(a) of title 5.
          (4) Service.--The term ``Service'' means the Federal 
        Mediation and Conciliation Service established by 
        section 202 of the Labor Management Relations Act, 1947 
        (29 U.S.C. 172).

Sec. 91102. Employee management and benefits election

  (a) Authority of CEO.--
          (1) In general.--Except as otherwise provided by law, 
        the CEO shall classify and fix the compensation and 
        benefits of employees in the Corporation.
          (2) Negotiations.--In developing, making changes to, 
        and implementing wages, hours, and other terms and 
        conditions of employment, including when establishing 
        the compensation and benefits program under section 
        90316(c), the Corporation shall negotiate with 
        exclusive representatives recognized under section 
        91105.
          (3) Before date of transfer.--For purposes of 
        paragraph (2), before the date of transfer, the term 
        ``exclusive representatives recognized under section 
        91105'' shall refer to labor organizations recognized 
        under section 7111 of title 5 as exclusive 
        representatives of FAA employees.
  (b) Former Federal Employees.--
          (1) Federal retirement benefits.--
                  (A) Election of retirement benefits.--At 
                least 90 days before the date of transfer, an 
                employee transferring to the Corporation who 
                will be subject to either the Civil Service 
                Retirement System under chapter 83 of title 5 
                (in this section referred to as ``CSRS'') or 
                the Federal Employees Retirement System under 
                chapter 84 of title 5 (in this section referred 
                to as ``FERS'') on the day immediately 
                preceding the date of transfer shall elect 
                either to--
                          (i) retain the employee's coverage 
                        under either CSRS or FERS, as 
                        applicable, in lieu of coverage by the 
                        Corporation's employee benefits system 
                        established under section 90316(c); or
                          (ii) receive a deferred annuity, 
                        lump-sum benefit, or any other benefit 
                        available to the employee under CSRS or 
                        FERS, in the same manner that would 
                        have been available to the employee if 
                        the employee had voluntarily separated 
                        from Federal employment on the day 
                        before the date of transfer.
                  (B) Thrift savings plan accounts.--An 
                employee who makes the election under 
                subparagraph (A)(ii) shall have the option to 
                transfer the balance in the employee's Thrift 
                Savings Plan account to the plan under the 
                Corporation's retirement system, consistent 
                with applicable law and the terms of the 
                Corporation's plan.
                  (C) Periodic election.--The Corporation shall 
                provide for periodic election seasons during 
                which an employee who transferred to the 
                Corporation on the date of transfer may become 
                eligible for retirement benefits under the 
                Corporation's employee benefits system 
                established under section 90316(c) by making an 
                election under subparagraph (A)(ii).
                  (D) Continuity of annuitant benefits.--
                Notwithstanding any other provision of law, any 
                individual who is receiving an annuity under 
                chapter 83 or chapter 84 of title 5 may 
                continue to receive such annuity while employed 
                by the Corporation.
                  (E) High-3 determination.--With respect to 
                any employee who retains CSRS or FERS coverage 
                pursuant to subparagraph (A), such employee's 
                basic pay while with the Corporation shall be 
                included in any determination of such 
                employee's average pay under section 8331(4) or 
                8401(3), as the case may be, of title 5 when 
                calculating the annuity (if any) of such 
                employee. For purposes of this section, an 
                employee's basic pay shall be defined as such 
                employee's total annual salary or wages from 
                the Corporation, including any location-based 
                adjustment.
          (2) Payments to civil service retirement and 
        disability fund.--For employees of the Corporation who 
        elect to retain their coverage under either CSRS or 
        FERS pursuant to paragraph (1), the Corporation shall 
        only be required to pay to the Civil Service Retirement 
        and Disability Fund--
                  (A) such employee deductions and agency 
                contributions as are required by sections 8334, 
                8422, and 8423 of title 5; and
                  (B) such additional amounts, not to exceed 2 
                percent of the amounts under subparagraph (A), 
                as are determined necessary by the Office of 
                Personnel Management to pay the cost of 
                administering retirement benefits for employees 
                who retire from the Corporation after the date 
                of transfer under either CSRS or FERS, for 
                their survivors, and for survivors of employees 
                of the Corporation who die after the date of 
                transfer (which amounts shall be available to 
                the Office of Personnel Management as provided 
                in section 8348(a)(1)(B) of title 5).
          (3) Thrift savings fund.--The Corporation shall pay 
        to the Thrift Savings Fund such employee and agency 
        contributions as are required by section 8432 of title 
        5 for employees who elect to retain their coverage 
        under FERS pursuant to paragraph (1).
          (4) Health benefits plan election.--Any employee of 
        the Corporation who was subject to the Federal 
        Employees Health Benefits Program under chapter 89 of 
        title 5 (in this section referred to as ``FEHBP'') on 
        the day immediately preceding the date of transfer 
        shall have the option to receive health benefits from a 
        health benefit plan established by the Corporation 
        under section 90316(c) or to continue coverage under 
        FEHBP without interruption.
          (5) Payments to employees health benefits fund.--For 
        employees of the Corporation who elect to retain their 
        coverage under FEHBP pursuant to paragraph (4), the 
        Corporation shall pay to the Employees Health Benefits 
        Fund--
                  (A) such employee deductions and agency 
                contributions as are required by subsections 
                (a) through (f) of section 8906 of title 5; and
                  (B) such amounts as are determined necessary 
                by the Office of Personnel Management under 
                paragraph (6) to reimburse the Office of 
                Personnel Management for contributions under 
                section 8906(g)(1) of title 5.
          (6) Reimbursement amounts.--The amounts required to 
        be paid by the Corporation under paragraph (5)(B) shall 
        be equal to the amount of Government contributions for 
        retired employees who retire from the Corporation after 
        the date of transfer under either CSRS or FERS, for 
        survivors of such retired employees, and for survivors 
        of employees of the Corporation who die after the date 
        of transfer, with said amounts prorated to reflect only 
        that portion of the total service of such employees and 
        retired persons that was performed for the Corporation 
        after the date of transfer.
          (7) Additional benefits.--Subject to the provisions 
        of this chapter, any employee of the Corporation who 
        was subject to the provisions of subchapter I of 
        chapter 85 (concerning unemployment compensation) and 
        chapters 87 (concerning life insurance), 89A 
        (concerning enhanced dental benefits), and 89B 
        (concerning enhanced vision benefits) of title 5 shall 
        have the option to continue coverage under such 
        provisions without interruption in lieu of applicable 
        coverage by the Corporation's employee benefits system 
        established under section 90316(c). The Corporation 
        shall withhold from pay, and shall make contributions, 
        under the provisions of title 5 referred to in this 
        subsection at the same rates applicable to agencies of 
        the Federal Government for such employees.
          (8) Workers compensation.--Officers and employees of 
        the Corporation shall be covered by, and shall be 
        considered employees for purposes of, subchapter I of 
        chapter 81 of title 5 (concerning compensation for work 
        injuries). The Corporation shall make contributions to 
        the Employees' Compensation Fund under the provisions 
        of section 8147 of title 5 at the same rates applicable 
        to agencies of the Federal Government.
          (9) Non-foreign area.--To the extent consistent with 
        law, the Non-Foreign Area Retirement Equity Assurance 
        Act of 2009 shall apply to officers and employees of 
        the Corporation transferred under section 90316.
          (10) Transfer of leave.--Sick and annual leave, 
        credit hours, and compensatory time of officers and 
        employees of the Corporation, whether accrued before or 
        after the date of transfer, shall be obligations of the 
        Corporation under the provisions of this chapter.
          (11) Whistleblower protection.--Neither the 
        Corporation, nor any officer or employee of the 
        Corporation, may take any action described in 
        subsection (b)(8), (b)(9), or (b)(13), or the final 
        paragraph of subsection (b), of section 2302 of title 5 
        (relating to whistleblower protection).

Sec. 91103. Labor and employment policy

  (a) Application of Chapter 71 of Title 5.--To the extent not 
inconsistent with this chapter, labor-management relations 
shall be subject to the provisions of chapter 71 of title 5, 
provided that the obligation of the Corporation and an 
exclusive bargaining representative recognized under section 
91105 to bargain collectively in good faith over conditions of 
employment shall mean to bargain over the same wages, hours, 
and other terms and conditions of employment as are negotiable 
under section 8(d) of the Act of July 5, 1935, as amended (29 
U.S.C. 158(d)), and without application of section 7103(a)(14) 
of title 5 and section 7117 of title 5, which shall not apply.
  (b) Applicability.--To the limited extent necessary for the 
implementation of this chapter, the Corporation shall have the 
rights and obligations of an agency under chapter 71 of title 
5.
  (c) Application of Fair Labor Standards Act.--The provisions 
of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) 
shall apply to the Corporation and to its officers and 
employees.
  (d) Reporting and Disclosure.--The provisions of the Labor-
Management Reporting and Disclosure Act of 1959 (29 U.S.C. 401 
et seq.) shall be applicable to labor organizations that have 
or are seeking to attain recognition under section 91105, and 
to such organizations' officers, agents, shop stewards, other 
representatives, and members.
  (e) Right To Collectively Bargain.--Each employee of the 
Corporation shall have the right, freely and without fear of 
penalty or reprisal, to form, join, and assist a labor 
organization or to refrain from any such activity, and each 
employee shall be protected in the exercise of this right. Such 
right shall include the right to engage in collective 
bargaining with respect to the same wages, hours, and other 
terms and conditions of employment as are negotiable under 
section 8(d) of the Act of July 5, 1935, as amended (29 U.S.C. 
158(d)).

Sec. 91104. Bargaining units

  (a) In General.--Pursuant to section 7112 of title 5 and 
subject to the requirements of this chapter, the Authority 
shall decide in each case the unit appropriate for collective 
bargaining with the Corporation.
  (b) Previously Certified Units.--Notwithstanding subsection 
(a), the Authority may not adopt, certify, or decide upon 
bargaining units that include employees in bargaining units 
previously certified by the Authority that are smaller in 
geographic scope than such previously certified bargaining 
units, unless the Authority finds by compelling evidence that 
such previously certified units would not, absent modification, 
remain units appropriate for collective bargaining with the 
Corporation.
  (c) Other Units.--
          (1) Previous certifications.--Notwithstanding 
        subsection (a) or (b), the Authority shall not 
        recognize or certify any bargaining unit different than 
        the bargaining units previously certified by the 
        Authority prior to the date described in section 
        91105(g).
          (2) Supervisors and management officials.--
        Notwithstanding section 7135(a)(2) of title 5, a 
        bargaining unit may not include, or be modified to 
        include, any supervisor or management official, as 
        those terms are defined in section 7103(a) of title 5.

Sec. 91105. Recognition of labor organizations

  (a) Application of Chapter 71 of Title 5.--To the extent not 
inconsistent with this chapter, section 7111 of title 5 shall 
apply to the recognition and certification of labor 
organizations for the employees of the Corporation and the 
Corporation shall accord exclusive recognition to and bargain 
collectively with a labor organization when the organization 
has been selected by a majority of the employees in an 
appropriate unit as their representative.
  (b) Recognition of Exclusive Representative.--Notwithstanding 
subsection (a), each labor organization that, immediately 
before the date of transfer, was recognized as the exclusive 
representative for a bargaining unit of employees of the Agency 
shall be deemed to be recognized on the date of transfer or 
thereafter as the exclusive representative for those employees 
of the Corporation in the same or similar bargaining unit 
unless another representative for a bargaining unit of 
employees is certified pursuant to section 7111 of title 5 and 
this section.
  (c) Expiration of Term.--Every collective-bargaining 
agreement or arbitration award that applies to an employee of 
the Agency and that is in force immediately before the date of 
transfer continues in force until its term expires. To the 
extent that the Corporation assumes the functions and 
responsibilities that, prior to the date of transfer, were 
conducted by the Agency, agreements and supplements (including 
any arbitration award, as applicable) covering employees of the 
Agency that are in effect on the date of transfer shall 
continue to be recognized by and binding on the Corporation, 
the bargaining representative, and all covered employees until 
altered or amended pursuant to law. Any agreement, supplement, 
or arbitration award continued by this section is deemed to be 
an agreement, supplement, or arbitration award binding on the 
Corporation, the bargaining representative, and all covered 
employees for purposes of this chapter and title 5.
  (d) Limitation on Application.--Notwithstanding section 
91103, sections 7106 and 7113 of title 5 shall not apply to 
this chapter.
  (e) Continuation of Bargaining.--If an exclusive 
representative and the Agency are engaged in bargaining 
(whether concerning a collective-bargaining agreement, issues 
related to the transfer of functions and responsibilities from 
the Agency to the Corporation, or otherwise) prior to the date 
of transfer, such bargaining shall continue between the 
exclusive representative and the Corporation, and the 
Corporation shall be bound by any commitments made during 
bargaining by the Agency.
  (f) Statutory Construction.--Nothing in this section may be 
construed to prohibit the waiving of hearings by stipulation 
for the purpose of a consent election in conformity with 
regulations and rules of decision of the Authority.
  (g) Limitation.--Notwithstanding any other provision of this 
chapter or any provision of title 5, no bargaining unit or part 
of a bargaining unit consisting of employees of the Corporation 
represented by a labor organization pursuant to subsection (b) 
may be reviewed, rescinded, amended, altered, or varied, other 
than--
          (1) to include in the unit any employees who are not 
        represented by a labor organization, or
          (2) to merge bargaining units that are represented by 
        the same labor organization,
before the first day of the last 3 months of the first 
collective agreement entered into after the date of transfer 
that applies to those employees and that has resulted from 
collective bargaining between such labor organization and the 
Corporation.
  (h) Deduction.--
          (1) In general.--Notwithstanding section 91103, 
        section 7115 of title 5 shall not apply to this 
        chapter.
          (2) Dues.--When a labor organization holds exclusive 
        recognition, the Corporation shall deduct the regular 
        and periodic dues, initiation fees, and assessments 
        (not including fines and penalties) of the organization 
        from the pay of all members of the organization in the 
        unit of recognition if the Corporation (or, before the 
        date of transfer, the Agency) has received from each 
        employee, on whose account such deductions are made, a 
        written assignment which shall be irrevocable for a 
        period of not more than 1 year.
          (3) Continuation.--Any agreement described in 
        subsection (c) that provides for deduction by the 
        Agency of the regular and periodic dues, initiation 
        fees, and assessments (not including fines and 
        penalties) of the labor organization from the pay of 
        its members shall continue in full force and effect and 
        the obligation for such deductions shall be assumed by 
        the Corporation. No such deduction may be made from the 
        pay of any employee except on the employee's written 
        assignment, which shall be irrevocable for a period of 
        not more than 1 year.

Sec. 91106. Collective-bargaining agreements

  (a) In General.--Except as provided under section 91105(c), 
collective-bargaining agreements between the Corporation and 
bargaining representatives shall be effective for not less than 
2 years.
  (b) Procedures.--Collective-bargaining agreements between the 
Corporation and bargaining representatives recognized under 
section 91105 may include procedures for resolution by the 
parties of grievances and adverse actions arising under the 
agreement, including procedures culminating in binding third-
party arbitration, or the parties may adopt such procedures by 
mutual agreement in the event of a dispute. Such procedures 
shall be applicable to disputes arising under section 91109.
  (c) Limitation on Application.--Notwithstanding section 
91103, section 7121(c) of title 5 shall not apply to this 
chapter.
  (d) Dispute Resolution Procedures.--The Corporation and 
bargaining representatives recognized under section 91105 may 
by mutual agreement adopt procedures for the resolution of 
disputes or impasses arising in the negotiation of a 
collective-bargaining agreement.

Sec. 91107. Collective-bargaining dispute resolution

  (a) Resolution of Disputes.--
          (1) In general.--If, prior to 90 days after the 
        expiration of the term collective-bargaining agreement 
        or 90 days after the parties begin mid-term 
        negotiations, the Corporation and the exclusive 
        bargaining representative of the employees of the 
        Corporation (in this section referred to collectively 
        as the ``parties'') do not reach an agreement under 
        sections 7114(a)(1), 7114(a)(4), and 7114(b) of title 5 
        (as such sections apply to the Corporation under this 
        chapter), or section 91106(d) of this chapter, the 
        Corporation and the bargaining representative shall use 
        the mediation services of the 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 this subtitle).
          (2) Mediation period.--The mediation period under 
        paragraph (1) may not exceed 60 days unless extended by 
        written agreement of the parties.
  (b) Binding Arbitration for Term Bargaining.--
          (1) Three member private arbitration board.--If the 
        mediation services of the Service under subsection 
        (a)(1) do not lead to the resolution of issues in 
        controversy arising from the negotiation of a term 
        collective-bargaining agreement, the parties shall 
        submit their issues in controversy to a private 
        arbitration board consisting of 3 members.
          (2) Appointment of arbitration board.--
                  (A) Preparation of list of arbitrators.--The 
                Director of the Service shall provide for the 
                appointment of the 3 members of an arbitration 
                board by--
                          (i) preparing a list of not fewer 
                        than 15 names of arbitrators of 
                        nationwide reputation and professional 
                        stature with at least 20 years of 
                        experience in labor-management 
                        arbitration and considerable experience 
                        in interest arbitration in major 
                        industries; and
                          (ii) providing the list to the 
                        parties.
                  (B) Selection of arbitrators by parties.--Not 
                later than 10 days after receiving a list of 
                names under subparagraph (A), the parties shall 
                each select one arbitrator. The arbitrators 
                selected by the parties do not need to be 
                arbitrators whose names appear on the list.
                  (C) Selection of third arbitrator.--Not later 
                than 7 days after the date on which the 2 
                arbitrators are selected by the parties under 
                subparagraph (B), the 2 arbitrators, acting 
                jointly, shall select a third person from the 
                list prepared under subparagraph (A).
                  (D) Failure to act.--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 prepared under subparagraph (A), beginning 
                with the party chosen on a random basis, until 
                one arbitrator remains.
          (3) 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.
          (4) Hearings.--The arbitration board shall give the 
        parties a full and fair hearing, including an 
        opportunity to present evidence and witnesses in 
        support of their claims and an opportunity to present 
        their case in person, by counsel, or by other 
        representative as they may elect.
          (5) Decisions.--The arbitration board shall render 
        its written decision not later than 90 days after the 
        date of its appointment. Decisions of the arbitration 
        board shall be conclusive and binding upon the parties.
          (6) Evidence.--The arbitration board shall consider 
        and afford the proper weight to all of the evidence 
        presented by the parties.
          (7) Costs.--The parties shall share costs of the 
        arbitration equally.
  (c) Ratification of Agreements.--Upon reaching a voluntary 
agreement or at the conclusion of the binding arbitration under 
subsection (b), the final agreement, except for those matters 
decided by a private arbitration board, shall be--
          (1) subject to ratification by the exclusive 
        bargaining representative of the employees, if so 
        requested by the bargaining representative; and
          (2) subject to approval by the head of the 
        Corporation in accordance with section 7114(c) of title 
        5.
  (d) Mid-Term Bargaining.--
          (1) Preparation of list of arbitrators.--If the 
        mediation services of the Service under subsection (a) 
        do not lead to the resolution of issues in controversy 
        arising from the negotiation of a mid-term collective-
        bargaining agreement, the Director shall provide the 
        parties a list of not fewer than 10 names of 
        arbitrators of nationwide reputation and professional 
        stature with at least 20 years of experience in labor-
        management arbitration and considerable experience in 
        interest arbitration in major industries.
          (2) Selection of arbitrator.--The parties shall 
        alternately strike names on the list, beginning with 
        the party chosen on a random basis, until one 
        arbitrator remains.
          (3) Decision.--The arbitrator shall hold a hearing, 
        and not later than 90 days after date of the 
        appointment of the arbitrator, issue a written decision 
        resolving the issues in controversy. The decision shall 
        be conclusive and binding upon the parties.
  (e) Enforcement.--To enforce this section, either party may 
bring suit in the United States District Court for the District 
of Columbia, which shall hear and resolve the enforcement 
action on an expedited basis.
  (f) Application.--Notwithstanding section 91103(a), section 
7119 of title 5 shall not apply to this chapter.

Sec. 91108. Potential and pending grievances, arbitrations, and 
                    settlements

  (a) In General.--The Corporation is deemed to be the employer 
referred to in any agreement or supplement referred to in 
section 91105(c) for the purpose of any arbitration proceeding 
or arbitration award. Any agreement concerning any employee 
that resolves a potential or filed grievance that is binding on 
the Agency shall, to the extent that the employee becomes an 
employee of the Corporation, become binding on the Corporation.
  (b) Existing Binding Agreements.--Any agreement or supplement 
referred to in section 91105(c) is binding on--
          (1) the Corporation as if it were the employer 
        referred to in such agreement or supplement;
          (2) the bargaining representative that is a party to 
        the agreement or supplement; and
          (3) the employees of the Corporation in the 
        bargaining unit with respect to whom that bargaining 
        representative has been certified.
  (c) Jurisdiction.--Subject to section 91103, the Authority 
shall retain jurisdiction over all matters arising before the 
date of transfer in relation to the interpretation and 
application of any agreement or supplement referred to in 
section 91105(c), whether or not such agreement or supplement 
has expired.
  (d) Existing Grievances or Arbitrations.--Grievances or 
arbitrations that were filed or commenced before the date of 
transfer with respect to any agreement or supplement referred 
to in section 91105(c) shall be continued as though the 
Corporation were the employer referred to in the agreement or 
supplement.
  (e) Proceedings After Date of Transfer.--Where events giving 
rise to a grievance under any agreement or supplement referred 
to in section 91105(c) occurred before the date of transfer but 
the proceedings had not commenced before that date, the 
proceedings may be commenced on or after the date of transfer 
in accordance with such agreement or supplement as though the 
Corporation were the employer referred to in such agreement or 
supplement.
  (f) Actions Deemed To Be by Corporation.--For the purposes of 
subsections (c), (d), and (e), anything done, or not done, by 
the Agency is deemed to have been done, or to have not been 
done, as the case may be, by the Corporation.
  (g) Exceptions to Arbitral Awards.--
          (1) In general.--Notwithstanding section 91103, 
        section 7122 of title 5 shall not apply to this 
        chapter.
          (2) Actions to vacate.--Either party to grievance 
        arbitration under this chapter may file an action 
        pursuant to section 91110(a) to enforce the arbitration 
        process or to vacate or enforce an arbitration award. 
        An arbitration award may only be vacated on the 
        grounds, and pursuant to the standards, that would be 
        applicable to an action to vacate an arbitration award 
        brought in the Federal courts under section 301 of the 
        Labor Management Relations Act, 1947 (29 U.S.C. 185).

Sec. 91109. Prohibition on striking and other activities

  (a) In General.--Employees of the Corporation are prohibited 
from--
          (1) participating in a strike, work stoppage, or 
        slowdown against the Corporation; or
          (2) picketing the Corporation in a labor-management 
        dispute if such picketing interferes with the 
        Corporation's operations.
  (b) Termination.--An employee who participates in an activity 
described in subsection (a) shall be terminated from employment 
with the Corporation.

Sec. 91110. Legal action

  (a) In General.--Consistent with the requirements of section 
90315, actions to enforce the arbitration process or vacate or 
enforce an arbitral award under section 91108(g)(2) between the 
Corporation and a labor organization representing Corporation 
employees, or between any such labor organizations, may be 
brought in any district court of the United States having 
jurisdiction of the parties, without respect to the amount in 
controversy.
  (b) Authorized Acts.--A labor organization recognized under 
section 91105 and the Corporation shall be bound by the 
authorized acts of their agents. Any labor organization may sue 
or be sued as an entity and on behalf of the employees whom it 
represents in the courts of the United States. Any money 
judgment against a labor organization in a district court of 
the United States shall be enforceable only against the 
organization as an entity and against its assets, and shall not 
be enforceable against any individual member or his assets.
  (c) Jurisdiction.--Under this subtitle, for the purposes of 
actions and proceedings by or against labor organizations in 
the district courts of the United States, district courts shall 
be deemed to have jurisdiction of a labor organization--
          (1) in the district in which such organization 
        maintains its principal offices; or
          (2) in any district in which its duly authorized 
        officers or agents are engaged in representing or 
        acting for employee members.
  (d) Summons or Subpoena.--The service of summons, subpoena, 
or other legal process of any court of the United States upon 
an officer or agent of a labor organization, in his capacity as 
such, shall constitute service upon the labor organization.

                       CHAPTER 913--OTHER MATTERS

Sec.
91301. Termination of Government functions.
91302. Savings provisions.

Sec. 91301. Termination of Government functions

  Except as otherwise provided in this subtitle, whenever any 
function vested by law in the Secretary, Administrator, 
Department of Transportation, or FAA has been transferred to 
the Corporation pursuant to this subtitle, it shall no longer 
be a function of the Government.

Sec. 91302. Savings provisions

  (a) Completed Administrative Actions.--
          (1) In general.--Completed administrative actions of 
        the Department of Transportation or the FAA shall not 
        be affected by the enactment of this subtitle, but 
        shall continue in effect according to their terms until 
        amended, modified, superseded, terminated, set aside, 
        or revoked in accordance with law.
          (2) Completed administrative action defined.--In 
        paragraph (1), the term ``completed administrative 
        action'' includes orders, determinations, rules, 
        regulations, personnel actions, permits, agreements, 
        grants, contracts, certificates, licenses, 
        registrations, and privileges.
  (b) Continued Effectiveness of Pending Actions.--
          (1) Pending actions and proceedings.--The provisions 
        of this subtitle shall not affect any proceedings of 
        the Department of Transportation or the FAA pending on 
        the date of transfer, including--
                  (A) notices of proposed rulemaking related to 
                activities of the FAA, without regard to 
                whether the activities are transferred to the 
                Corporation; and
                  (B) an application for a license, a permit, a 
                certificate, or financial assistance pending on 
                the date of transfer before the Department of 
                Transportation or the FAA, or any officer 
                thereof, with respect to activities of the 
                Department or the FAA, without regard to 
                whether the activities are transferred to the 
                Corporation.
          (2) Effect of orders.--Orders issued in any 
        proceedings referred to in paragraph (1) shall continue 
        in effect until modified, terminated, superseded, or 
        revoked in accordance with law. Nothing in this 
        subsection prohibits the discontinuance or modification 
        of any such proceeding under the same terms and 
        conditions and to the same extent that such proceeding 
        could have been discontinued or modified if this 
        subtitle had not been enacted.
  (c) Continued Effectiveness of Administrative and Judicial 
Actions.--No causes of action or actions by or against the 
Department of Transportation or the FAA arising from acts or 
omissions occurring before the date of transfer shall abate by 
reason of the enactment of this subtitle.
  (d) Substitution or Addition of Parties to Judicial 
Actions.--Except as provided by subsection (e)(2), if, on the 
date of transfer, the Department of Transportation or the FAA, 
or any officer thereof in the officer's capacity, is a party to 
an action and, under this subtitle, the performance of that 
activity of the Department, FAA, or officer is transferred to 
the Corporation, such action shall be continued with the CEO 
substituted or added as a party.
  (e) Air Traffic Services Liabilities and Obligations.--
          (1) Assumption of obligations.--Except as provided in 
        paragraph (2), the Corporation shall assume--
                  (A) all obligations (tangible and 
                incorporeal, present, and executory) associated 
                with the air traffic services transferred under 
                this subtitle on the date of transfer, 
                including leases, permits, licenses, contracts, 
                agreements, accounts receivable, and accounts 
                payable; and
                  (B) all claims and liabilities associated 
                with the air traffic services transferred under 
                this subtitle pending on the date of transfer.
          (2) Claims and actions that remain liabilities of 
        united states.--
                  (A) Claims and actions arising in tort.--All 
                claims and actions arising in tort pending on 
                the date of transfer and arising out of the 
                alleged acts or omissions of employees of the 
                FAA who transfer to the Corporation shall 
                remain liabilities of the United States.
                  (B) Contingent liabilities.--All contingent 
                liabilities existing on the date of transfer 
                shall remain with the United States, including 
                (without limitation) environmental and 
                intellectual property infringement claims.
                  (C) Other claims and liabilities.--All other 
                claims and liabilities arising out of the 
                alleged acts or omissions of the United States 
                before the date of transfer (including those 
                arising under an agreement referred to in 
                section 91105(c)) whose remedy is financial or 
                monetary in nature shall remain liabilities of 
                the United States.
                  (D) Access of federal representatives to 
                employees and records.--The Secretary shall 
                ensure that, before the date of transfer, the 
                Corporation has agreed to allow representatives 
                of the Secretary and the Attorney General such 
                access as they may require to employees and 
                records of the Corporation for all purposes 
                relating to the handling of such claims under 
                this paragraph.

 CHAPTER 915--CONGRESSIONAL OVERSIGHT OF AIR TRAFFIC SERVICES PROVIDER

Sec.
91501. Inspector General reports to Congress on transition.
91502. State of air traffic services.
91503. Submission of annual financial report.
91504. Submission of strategic plan.
91505. Submission of annual action plan.

Sec. 91501. Inspector General reports to Congress on transition

  (a) In General.--Before the date of transfer, the Inspector 
General of the Department of Transportation shall submit 
regular reports to Congress on the progress of the preparation 
of the Department of Transportation and of the Corporation for 
the transfer of operational control of air traffic services 
under this subtitle.
  (b) Timing.--The reports described in subsection (a) shall be 
submitted, at a minimum, on a quarterly basis until the date of 
transfer.
  (c) Sunset.--This section shall expire on the date of 
transfer.
  (d) Statutory Construction.--Nothing in this section may be 
construed to limit the authority of the Inspector General of 
the Department of Transportation to conduct oversight of the 
Department of Transportation's interactions with the 
Corporation after the date of transfer.

Sec. 91502. State of air traffic services

  (a) Report.--Not later than 2 years after the date of 
transfer, and on or before March 31 of every second year 
beginning thereafter--
          (1) the Corporation shall submit to the Secretary a 
        report on the state of air traffic services; and
          (2) the Secretary shall submit the report to 
        Congress.
  (b) Contents.--The report shall include, as appropriate, 
information on--
          (1) access to airports and services for all users, 
        including access with respect to rural areas;
          (2) charges and fees, safety, and areas in which the 
        Corporation has identified efficiencies in the system, 
        including staffing and facilities realignment or 
        consolidation;
          (3) the safe, fair, and timely provision of air 
        traffic services by the Corporation;
          (4) the sound operation of the Corporation and the 
        impact of any activities of the Corporation on United 
        States airspace;
          (5) the cooperation and interaction of the 
        Corporation with the Department of Defense, the 
        Department of Transportation, the FAA, and other 
        Federal departments and agencies, including any 
        agreements between the Corporation and those 
        departments and agencies;
          (6) compliance of the Corporation with United States 
        obligations under international treaties and 
        agreements;
          (7) compliance of the Corporation with Federal 
        safety, environmental, corporate, and tax laws and 
        regulations;
          (8) compliance of the Corporation with Federal laws 
        related to employees of the Corporation;
          (9) follow-up on Inspector General and Government 
        Accountability Office audits, investigations, and 
        reports involving the Corporation, including any 
        recommendations included in such reports;
          (10) compliance of the Corporation with other Federal 
        requirements, including requirements relating to public 
        disclosure, publication of fees, annual reporting, and 
        establishment of the Advisory Board and other 
        committees;
          (11) actions and activities of the CEO and Board and 
        their adherence to their duties and responsibilities;
          (12) compliance of the Corporation with requirements 
        related to rural, remote, and small community air 
        traffic services;
          (13) compliance of the Corporation with requirements 
        related to claims of incorrect fees and resolution of 
        fee disputes;
          (14) compliance of the Corporation with requirements 
        to report safety violations to the FAA, cooperate with 
        FAA investigations, and assist in FAA enforcement 
        actions;
          (15) actions in times of emergencies and times of 
        war;
          (16) progress made by the Corporation in implementing 
        system modernization efforts and ongoing capital 
        investments, plans of the Corporation for next steps in 
        implementing such efforts and investments, current 
        efficiencies and benefits of previously implemented 
        systems improvements, and current needs for 
        improvement; and
          (17) such other matters as the Secretary, in 
        consultation with the Administrator, determines 
        appropriate.

Sec. 91503. Submission of annual financial report

  (a) Annual Financial Report.--
          (1) In general.--Not later than 1 year after the date 
        of transfer, and annually thereafter, the Corporation 
        shall publish a report on the activities of the 
        Corporation during the prior year.
          (2) Contents; availability.--The annual report shall 
        contain financial and operational performance 
        information regarding the Corporation, as well as 
        information on the compensation (including bonuses and 
        other financial incentives) of each Director, the CEO, 
        and officers of the Corporation, and shall be made 
        publicly available.
          (3) Propriety information.--The Corporation shall 
        ensure that any propriety information that may be 
        contained in the annual report is not made public.
  (b) Submission.--Each year, on the date the annual report 
required pursuant to subsection (a) is published--
          (1) the Corporation shall submit the report to the 
        Secretary; and
          (2) the Secretary shall submit the report to 
        Congress.

Sec. 91504. Submission of strategic plan

  (a) Submission of Strategic Plan.--Not later than 15 days 
after the initial strategic plan is approved by the Board 
pursuant to section 90308(c)--
          (1) the Corporation shall submit the strategic plan 
        to the Secretary; and
          (2) the Secretary shall submit the strategic plan to 
        Congress.
  (b) Updates to Strategic Plan.--Not later than 15 days after 
an update to the strategic plan is approved by the Board 
pursuant to section 90308(c)--
          (1) the Corporation shall submit the updated 
        strategic plan to the Secretary; and
          (2) the Secretary shall submit the updated strategic 
        plan to Congress.

Sec. 91505. Submission of annual action plan

  (a) In General.--The Corporation shall develop an annual 
report on the goals of the Corporation for the following year.
  (b) Contents.--The report shall contain goals for the 
Corporation to meet that are specific, tangible, and 
actionable, in order to expedite improvements to, and maintain 
the integrity of, air traffic services provided by the 
Corporation.
  (c) Submission.--Not later than 1 year after the date of 
transfer, and annually thereafter--
          (1) the Corporation shall submit the report to the 
        Secretary; and
          (2) the Secretary shall submit the report to 
        Congress.
  (d) Public Availability.--The Corporation shall publish, and 
make available to the public, each report submitted to the 
Secretary under subsection (c).
  (e) Proprietary Information.--In carrying out this section, 
the Corporation may take necessary actions to prevent the 
public disclosure of proprietary information.

           *       *       *       *       *       *       *

                              ----------                              

          VISION 100--CENTURY OF AVIATION REAUTHORIZATION ACT

           *       *       *       *       *       *       *
TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

           *       *       *       *       *       *       *

Subtitle D--Miscellaneous

           *       *       *       *       *       *       *

SEC. 186. MIDWAY ISLAND AIRPORT.

  (a) Findings.--Congress finds that the continued operation of 
the Midway Island Airport in accordance with the standards of 
the Federal Aviation Administration applicable to commercial 
airports is critical to the safety of commercial, military, and 
general aviation in the mid-Pacific Ocean region.
  (b) Memorandum of Understanding on Sale of Aircraft Fuel.--
The Secretaries of Transportation, Defense, Interior, and 
Homeland Security shall enter into a memorandum of 
understanding to facilitate the sale of aircraft fuel on Midway 
Island at a price that will generate sufficient revenue to 
improve the ability of the airport to operate on a self-
sustaining basis in accordance with the standards of the 
Federal Aviation Administration applicable to commercial 
airports. The memorandum shall also address the long-range 
potential of promoting tourism as a means to generate revenue 
to operate the airport.
  (c) Transfer of Navigation Aids at Midway Island Airport.--
The Midway Island Airport may transfer, without consideration, 
to the Administrator the navigation aids at the airport. The 
Administrator shall accept the navigation aids and operate and 
maintain the navigation aids under criteria of the 
Administrator.
  (d) Funding to Secretary of the Interior for Midway Island 
Airport.--The Secretary of Transportation may enter into a 
reimbursable agreement with the Secretary of the Interior for 
the purpose of funding airport development, as defined in 
section 47102(3) of title 49, United States Code, at Midway 
Island Airport for [fiscal years 2012 through 2017] fiscal 
years 2017 through 2023 from amounts available in the 
discretionary fund established by section 47115 of such title. 
The maximum obligation under the agreement for any such fiscal 
year shall be $2,500,000.

           *       *       *       *       *       *       *

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

Subtitle A--Small Community Air Service

           *       *       *       *       *       *       *

SEC. 409. MEASUREMENT OF HIGHWAY MILES FOR PURPOSES OF DETERMINING 
                    ELIGIBILITY OF ESSENTIAL AIR SERVICE SUBSIDIES.

  (a) Request for Secretarial Review.--An eligible place (as 
defined in section 41731 of title 49, United States Code) with 
respect to which the Secretary has, in the 2-year period ending 
on the date of enactment of this Act, eliminated (or 
tentatively eliminated) compensation for essential air service 
to such place, or terminated (or tentatively terminated) the 
compensation eligibility of such place for essential air 
service, under section 332 of the Department of Transportation 
and Related Agencies Appropriations Act, 2000 (49 U.S.C. 41731 
note), section 205 of the Wendell H. Ford Aviation Investment 
and Reform Act for the 21st Century (49 U.S.C. 41731 note), or 
any prior law of similar effect based on the highway mileage of 
such place from the nearest hub airport (as defined in section 
40102 of such title), may request the Secretary to review such 
action.
  (b) Determination of Mileage.--In reviewing an action under 
subsection (a), the highway mileage between an eligible place 
and the nearest medium hub airport or large hub airport is the 
highway mileage of the most commonly used route between the 
place and the medium hub airport or large hub airport. In 
identifying such route, the Secretary shall identify the most 
commonly used route for a community by--
          (1) consulting with the Governor of a State or the 
        Governor's designee; and
          (2) considering the certification of the Governor of 
        a State or the Governor's designee as to the most 
        commonly used route.
  (c) Eligibility Determination.--Not later than 60 days after 
receiving a request under subsection (a), the Secretary shall--
          (1) determine whether the eligible place would have 
        been subject to an elimination of compensation 
        eligibility for essential air service, or termination 
        of the eligibility of such place for essential air 
        service, under the provisions of law referred to in 
        subsection (a) based on the determination of the 
        highway mileage of such place from the nearest medium 
        hub airport or large hub airport under subsection (b); 
        and
          (2) issue a final order with respect to the 
        eligibility of such place for essential air service 
        compensation under subchapter II of chapter 417 of 
        title 49, United States Code.
  (d) Limitation on Period of Final Order.--A final order 
issued under subsection (c) shall terminate on [September 30, 
2017] September 30, 2023 .

           *       *       *       *       *       *       *

                              ----------                              

                FAA MODERNIZATION AND REFORM ACT OF 2012

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:

     * * * * * * *

                            TITLE III--SAFETY

     * * * * * * *

                  Subtitle B--Unmanned Aircraft Systems

[Sec. 333. Special rules for certain unmanned aircraft systems.
[Sec. 334. Public unmanned aircraft systems.]
     * * * * * * *
[Sec. 336. Special rule for model aircraft.]

           *       *       *       *       *       *       *

TITLE III--SAFETY

           *       *       *       *       *       *       *

Subtitle B--Unmanned Aircraft Systems

           *       *       *       *       *       *       *

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, in coordination with the 
        Administrator of the National Aeronautics and Space 
        Administration (NASA) and relevant stakeholders, 
        including those in industry and academia, the roadmap 
        annually. The roadmap shall include, at a minimum--
                  [(A) cost estimates, planned schedules, and 
                performance benchmarks, including specific 
                tasks, milestones, and timelines, for unmanned 
                aircraft systems integration into the national 
                airspace system, including an identification 
                of--
                          [(i) the role of the unmanned 
                        aircraft systems test ranges 
                        established under subsection (c) and 
                        the Unmanned Aircraft Systems Center of 
                        Excellence;
                          [(ii) performance objectives for 
                        unmanned aircraft systems that operate 
                        in the national airspace system; and
                          [(iii) research and development 
                        priorities for tools that could assist 
                        air traffic controllers as unmanned 
                        aircraft systems are integrated into 
                        the national airspace system, as 
                        appropriate;
                  [(B) a description of how the Administration 
                plans to use research and development, 
                including research and development conducted 
                through NASA's Unmanned Aircraft Systems 
                Traffic Management initiatives, to accommodate, 
                integrate, and provide for the evolution of 
                unmanned aircraft systems in the national 
                airspace system;
                  [(C) an assessment of critical performance 
                abilities necessary to integrate unmanned 
                aircraft systems into the national airspace 
                system, and how these performance abilities can 
                be demonstrated; and
                  [(D) an update on the advancement of 
                technologies needed to integrate unmanned 
                aircraft systems into the national airspace 
                system, including decisionmaking by adaptive 
                systems, such as sense-and-avoid capabilities 
                and cyber physical systems security.
  [(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 on [September 30, 
        2019] the date that is 6 years after the date of 
        enactment of the 21st Century AIRR 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. 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.]

                   TITLE IV--AIR SERVICE IMPROVEMENTS

Subtitle A--Passenger Air Service Improvements

           *       *       *       *       *       *       *

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) independent distributors of travel;
          [(3)] (4) State or local governments with expertise 
        in consumer protection matters; and
          [(4)] (5) 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) Select Subcommittee for Aviation Consumers With 
Disabilities.--
          (1) In general.--The Secretary shall establish a 
        select subcommittee of the advisory committee to advise 
        the Secretary and the advisory committee on issues 
        related to the air travel needs of passengers with 
        disabilities.
          (2) Duties.--The select subcommittee shall--
                  (A) identify the disability-related access 
                barriers encountered by passengers with 
                disabilities;
                  (B) determine the extent to which the 
                programs and activities of the Department of 
                Transportation are addressing the barriers 
                identified under subparagraph (A);
                  (C) recommend consumer protection 
                improvements related to the air travel 
                experience of passengers with disabilities;
                  (D) advise the Secretary with regard to the 
                implementation of section 41705 of title 49, 
                United States Code; and
                  (E) conduct such other activities as the 
                Secretary considers necessary to carry out this 
                subsection.
          (3) Membership.--
                  (A) Composition.--The select subcommittee 
                shall be composed of members appointed by the 
                Secretary, including at least 1 individual 
                representing each of the following:
                          (i) National disability 
                        organizations.
                          (ii) Air carriers and foreign air 
                        carriers with flights in air 
                        transportation.
                          (iii) Airport operators.
                          (iv) Contractor service providers.
                  (B) Inclusion.--A member of the select 
                subcommittee may also be a member of the 
                advisory committee.
          (4) Reports.--
                  (A) In general.--Not later than 1 year after 
                the date of establishment of the select 
                subcommittee, the select subcommittee shall 
                submit to the advisory committee and the 
                Secretary a report on the air travel needs of 
                passengers with disabilities that includes--
                          (i) an assessment of existing 
                        disability-related access barriers and 
                        any emerging disability-related access 
                        barriers that will likely be an issue 
                        in the next 5 years;
                          (ii) an evaluation of the extent to 
                        which the programs and activities of 
                        the Department of Transportation are 
                        eliminating disability-related access 
                        barriers;
                          (iii) a description of consumer 
                        protection improvements related to the 
                        air travel experience of passengers 
                        with disabilities; and
                          (iv) any recommendations for 
                        legislation, regulations, or other 
                        actions that the select subcommittee 
                        considers appropriate.
                  (B) Report to congress.--Not later than 60 
                days after the date on which the Secretary 
                receives the report under subparagraph (A), the 
                Secretary shall submit to Congress a copy of 
                the report, including any additional findings 
                or recommendations that the Secretary considers 
                appropriate.
          (5) Chairperson.--The Secretary shall designate, from 
        among the individuals appointed under paragraph (3), an 
        individual to serve as chairperson of the select 
        subcommittee.
          (6) Vacancies and travel expenses.--Subsections (c) 
        and (d) shall apply to the select subcommittee.
          (7) Termination.--The select subcommittee established 
        under this subsection shall terminate upon submission 
        of the report required under paragraph (4)(A).
  [(g)] (h) Report to Congress.--Not later than February 1 of 
each of the [first 2 calendar years] first 6 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)] (i) Termination.--The advisory committee established 
under this section shall terminate on [September 30, 2017] 
September 30, 2023 .

           *       *       *       *       *       *       *

Subtitle B--Essential Air Service

           *       *       *       *       *       *       *

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

  (a) Emergency Across-the-Board Adjustment.--Subject to the 
availability of funds, the [Secretary] Secretary of 
Transportation 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] the Secretary of Transportation 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.

           *       *       *       *       *       *       *

TITLE V--ENVIRONMENTAL STREAMLINING

           *       *       *       *       *       *       *

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)] section 48101(a) of 
title 49, United States Code, 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.

           *       *       *       *       *       *       *

TITLE VIII--MISCELLANEOUS

           *       *       *       *       *       *       *

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] The purpose of the report 
                shall be 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.]
          (4) Input.--The report shall be prepared by the 
        Administrator (or the Administrator's designee) with 
        the participation of--
                  (A) representatives of labor organizations 
                representing air traffic control system 
                employees of the FAA; and
                  (B) 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. 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], section 23 of the Airport and Airway Development 
Act of 1970 (84 Stat. 232), or section 47125 of title 49, 
United States Code .
  (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.

           *       *       *       *       *       *       *

                              ----------                              

            FAA EXTENSION, SAFETY, AND SECURITY ACT OF 2016

           *       *       *       *       *       *       *
               TITLE II--AVIATION SAFETY CRITICAL REFORMS

Subtitle A--Safety

           *       *       *       *       *       *       *

SEC. 2110. TOWER MARKING.

  [(a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Administrator of the Federal 
Aviation Administration shall issue regulations to require the 
marking of covered towers.
  [(b) Marking Required.--The regulations under subsection (a) 
shall require that a covered tower be clearly marked in a 
manner that is consistent with applicable guidance under the 
Federal Aviation Administration Advisory Circular issued 
December 4, 2015 (AC 70/7460-1L), or other relevant safety 
guidance, as determined by the Administrator.
  [(c) Application.--The regulations issued under subsection 
(a) shall ensure that--
          [(1) all covered towers constructed on or after the 
        date on which such regulations take effect are marked 
        in accordance with subsection (b); and
          [(2) a covered tower constructed before the date on 
        which such regulations take effect is marked in 
        accordance with subsection (b) not later than 1 year 
        after such effective date.]
  (a) Application.--
          (1) In general.--Except as provided by paragraph (2), 
        not later than 1 year after the date of enactment of 
        the 21st Century AIRR Act or the availability of the 
        database developed by the Administrator of the Federal 
        Aviation Administration pursuant to subsection (c), 
        whichever is later, all covered towers shall be 
        either--
                  (A) clearly marked consistent with applicable 
                guidance in the advisory circular of the 
                Federal Aviation Administration issued December 
                4, 2015 (AC 70/7460-IL); or
                  (B) included in the database described in 
                subsection (c).
          (2) Meteorological evaluation tower.--A covered tower 
        that is a meteorological evaluation tower shall be 
        subject to the requirements of paragraphs (1)(A) and 
        (1)(B).
  [(d)] (b) Definitions.--
          (1) In General.--In this section, the following 
        definitions apply:
                  (A) Covered tower.--
                          (i) In General.--The term ``covered 
                        tower'' means a structure that--
                                  (I) is [self-standing or] a 
                                meteorological evaluation tower 
                                or tower supported by guy wires 
                                and ground anchors;
                                  (II) is 10 feet or less in 
                                diameter at the above-ground 
                                base, excluding concrete 
                                footing;
                                  (III) at the highest point of 
                                the structure is at least 50 
                                feet above ground level;
                                  (IV) at the highest point of 
                                the structure is not more than 
                                200 feet above ground level;
                                  (V) has accessory facilities 
                                on which an antenna, sensor, 
                                camera, meteorological 
                                instrument, or other equipment 
                                is mounted; and
                                  (VI) is located--
                                          (aa) outside the 
                                        boundaries of an 
                                        incorporated city or 
                                        town; or
                                          (bb) on land that 
                                        is--
                                                  (AA) 
                                                undeveloped; or
                                                  (BB) used for 
                                                agricultural 
                                                purposes.
                          (ii) Exclusions.--The term ``covered 
                        tower'' does not include any structure 
                        that--
                                  (I) is adjacent to a house, 
                                barn, electric utility station, 
                                or other building;
                                  (II) is within the curtilage 
                                of a farmstead;
                                  (III) supports electric 
                                utility transmission or 
                                distribution lines;
                                  (IV) is a wind-powered 
                                electrical generator with a 
                                rotor blade radius that exceeds 
                                6 feet; [or]
                                  (V) is a street light erected 
                                or maintained by a Federal, 
                                State, local, or tribal 
                                entity[.];
                                  (VI) is located within the 
                                right-of-way of a rail carrier, 
                                including within the boundaries 
                                of a rail yard, and is used for 
                                a railroad purpose;
                                  (VII) is determined by the 
                                Administrator to pose no hazard 
                                to air navigation; or
                                  (VIII) has already mitigated 
                                any hazard to aviation safety 
                                in accordance with Federal 
                                Aviation Administration 
                                guidance or as otherwise 
                                approved by the Administrator.
                  (B) Undeveloped.--The term ``undeveloped'' 
                means a defined geographic area where the 
                Administrator determines low-flying aircraft 
                are operated on a routine basis, such as low-
                lying forested areas with predominant tree 
                cover under 200 feet and pasture and range 
                land.
          (2) Other definitions.--The Administrator shall 
        define such other terms as may be necessary to carry 
        out this section.
  [(e)] (c) Database.--The Administrator shall--
          [(1) develop a database that contains the location 
        and height of each covered tower;]
          (1) develop a database that contains the location and 
        height of each covered tower that, pursuant to 
        subsection (a), the owner or operator of such tower 
        elects not to mark, except that meteorological 
        evaluation towers shall be marked and contained in the 
        database;
          (2) keep the database current to the extent 
        practicable;
          (3) ensure that any proprietary information in the 
        database is protected from disclosure in accordance 
        with law; [and]
          (4) ensure that, by virtue of accessing the database, 
        users agree and acknowledge that information in the 
        database--
                  (A) may only be used for aviation safety 
                purposes; and
                  (B) may not be disclosed for purposes other 
                than aviation safety, regardless of whether or 
                not the information is marked or labeled as 
                proprietary or with a similar designation[.];
          (5) ensure that the tower information in the database 
        is de-identified and that the information only includes 
        the location and height of covered towers; and
          (6) make the database available for use not later 
        than 1 year after the date of enactment of the 21st 
        Century AIRR Act.

           *       *       *       *       *       *       *

                              ----------                              

                      TITLE 51, UNITED STATES CODE

           *       *       *       *       *       *       *
SUBTITLE V--PROGRAMS TARGETING COMMERCIAL OPPORTUNITIES

           *       *       *       *       *       *       *

            CHAPTER 509--COMMERCIAL SPACE LAUNCH ACTIVITIES

Sec.
50901. Findings and purposes.
     * * * * * * *
50924. Funding to facilitate FAA licensing.

           *       *       *       *       *       *       *

Sec. 50924. Funding to facilitate FAA licensing

  (a) In General.--Notwithstanding any other provision of law, 
the Secretary of Transportation may accept funds from a person 
applying for a license or permit under this chapter to hire 
additional staff or obtain the services of consultants and 
experts--
          (1) to facilitate the timely processing, review, and 
        issuance of licenses or permits issued under this 
        chapter;
          (2) to conduct environmental activities, studies, or 
        reviews associated with such licenses or permits; or
          (3) to conduct additional activities associated with 
        or necessitated by such licenses or permits, including 
        pre-application consultation, hazard area 
        determination, or on-site inspection.
  (b) Rules of Construction.--
          (1) In general.--Nothing in this section may be 
        construed as permitting the Secretary to grant priority 
        or afford any preference to an applicant providing 
        funds under subsection (a).
          (2) Policies and procedures.--The Secretary shall 
        implement such policies and procedures as may be 
        required to ensure that the acceptance of funds under 
        subsection (a) does not prejudice the Secretary in the 
        issuance of any license or permit to an applicant.
  (c) Receipts Credited as Offsetting Collections.--
Notwithstanding section 3302 of title 31, any funds accepted 
under this section--
          (1) shall be credited as offsetting collections to 
        the account that finances the activities and services 
        for which the funds are accepted;
          (2) shall be available for expenditure only to pay 
        the costs of activities and services for which the 
        funds are accepted; and
          (3) shall remain available until expended.

           *       *       *       *       *       *       *

                            DISSENTING VIEWS

    Although many provisions of H.R. 2997, the ``21st Century 
Aviation Innovation, Reform, and Reauthorization Act'' (21st 
Century AIRR Act), are products of bipartisan negotiation and 
compromise, we strongly object to the bill's main focus: a 
controversial and flawed plan to privatize the Nation's air 
traffic control system. This privatization plan will disrupt 
major Federal Aviation Administration (FAA) safety and 
modernization programs, hand over Federal assets free of charge 
to a private corporation, threaten access to small, rural, and 
mid-sized communities, and likely drive up the cost of air 
travel.
    The air traffic control privatization plan (title II of the 
bill):
            Splits the FAA in two, separating up to 
        35,000 hardworking employees from Federal service and 
        placing them in the employ of a private corporation 
        called the American Air Navigation Services 
        Corporation.
            Disrupts all FAA programs and fails to 
        solve the most significant problems facing the aviation 
        system. By splitting the FAA in two, the plan leaves 
        critical FAA safety programs, including programs to 
        certify new aircraft and equipment and to conduct 
        robust safety oversight of the airline industry, 
        subject to year-to-year funding uncertainty. These 
        safety programs, primarily funded by the Airport and 
        Airway Trust Fund under current law, are shifted to 
        funding exclusively from the General Fund of the 
        Treasury, together with all the budget uncertainty that 
        it provides.
            Conveys free of charge, to a private 
        corporation, billions of dollars' worth of assets that 
        American taxpayers have bought and paid for. Taxpayers 
        have invested approximately $50 billion in these assets 
        since 1996. The plan hands over taxpayer-purchased air 
        traffic control facilities and equipment to a private 
        company. The only two other governments in the world 
        that have privatized their air traffic control 
        systems--Canada and the United Kingdom--received 
        compensation when they transferred public assets. Other 
        governments, even those that have separated their air 
        traffic control systems from safety regulators, own air 
        traffic control assets.
            Places air traffic control under the 
        effective control of airlines, placing access to the 
        aviation system at risk. Under the bill, three of the 
        corporation's 13 directors are appointed by airlines, 
        with the possibility of four additional appointments of 
        directors friendly to airline interests through two 
        Secretarial appointments and two appointments decided 
        by the members of the board. Thus, the airlines may 
        control a majority of the board and the corporation's 
        strategic decisions could be designed to benefit 
        airlines, an industry that is under serious criticism 
        for anticompetitive practices. The Government 
        Accountability Office (GAO) reported on February 10, 
        2016, on aviation experts' concern that ``small and 
        rural communities could be negatively affected by a 
        restructured [air traffic control system].''\1\
---------------------------------------------------------------------------
    \1\U.S. Gov't Accountability Office, Potential Air Traffic Control 
Transition Issues 8, Rpt. No. GAO-16-386R (2016).
---------------------------------------------------------------------------

                          A Controversial Plan

    Steadfast opposition to H.R. 2997's privatization plan 
includes bipartisan Senate appropriators as well as a growing 
list of aviation stakeholders including the Aircraft Owners and 
Pilots Association; the National Business Aviation Association; 
the Regional Airline Association; the Professional Aviation 
Safety Specialists union, which represents FAA safety 
inspectors and technicians; numerous other FAA labor groups; 
the United Steel Workers union; the National Air Transportation 
Association; the Experimental Aircraft Association; the 
National Consumers League; hundreds of mayors, and even NASCAR, 
among others. More than 30 general aviation groups criticized 
the privatization scheme in H.R. 2997 as a ``fundamentally 
flawed'' plan that ``will produce uncertainty and unintended 
consequences without achieving the desired outcomes.''\2\
---------------------------------------------------------------------------
    \2\Aircraft Owners and Pilots Assoc., et al., ``Statement of 30 
General Aviation Groups United In Opposition to H.R. 2997'' (2017).
---------------------------------------------------------------------------
    Although some countries have separated air traffic control 
systems from aviation safety regulators, only two--Canada and 
the United Kingdom (U.K.)--have privatized their systems. But 
neither government handed over air traffic control assets free 
of charge, as H.R. 2997 requires, and neither the Canadian nor 
the U.K. aviation system is remotely comparable to that of the 
United States in geographic size, complexity, number of 
facilities, number of general aviation aircraft, number of 
airports, or even approaches to air traffic control 
modernization. The Department of Transportation Inspector 
General concluded in a 2015 report that ``[t]here are 
significant differences between FAA and the foreign [air 
traffic control providers].''\3\
---------------------------------------------------------------------------
    \3\Dep't of Transp. Office of the Inspector General, There Are 
Significant Differences Between FAA and Foreign Countries' Processes 
for Operating Air Navigation Systems 3, Rpt. No. AV-2015-084 (2014).
---------------------------------------------------------------------------
    We agree with numerous aviation stakeholders who are 
concerned about Congress's inability to promise stable, 
predictable funding for aviation programs and the need for the 
swiftest possible implementation of the FAA's Next Generation 
Air Transportation System (NextGen), which the FAA has already 
begun delivering. And we agree that the FAA needs secure, 
continuous funding to embark on major capital investment 
programs, to operate the air traffic control system, and to 
vigorously oversee the safety of the flying public without the 
threat of disruption due to sequestration and government 
shutdowns.
    But we disagree that only the air traffic control system 
should be protected from these harms. The entire agency, 
especially aviation safety functions, is just as deserving of 
insulation from political dysfunction, if not more so. The GAO 
reported in 2015 that budget uncertainty compromised the FAA's 
ability to make long-term capital investment decisions that 
rely on the assurance of stable funding.\4\
---------------------------------------------------------------------------
    \4\Gov't Accountability Office, Aviation Finance: Observations on 
the Effects of Budget Uncertainty on FAA, Rpt. No. GAO-16-198R (2015).
---------------------------------------------------------------------------

                    A Solution in Search of Problems

    To the extent H.R. 2997 seeks to deliver predictability and 
stability for the air traffic control system, it fails to 
fulfill its essential purpose. For instance, because delegation 
of a regulatory function such as air traffic control to a 
private entity is unconstitutional under the non-delegation 
doctrine,\5\ the Republican plan requires the Secretary of 
Transportation to approve or disapprove numerous important 
decisions of the American Air Navigation Services Corporation. 
For example, the Secretary must review regulations and 
standards proposed by the Corporation; must prescribe 
performance-based safety regulations and standards; and must 
specifically review proposals for airspace modifications and 
procedure changes in busy areas.\6\ The Secretary also reviews 
proposals to decommission air traffic control facilities.\7\ 
This labyrinthine process of Secretarial approval guarantees 
delays as the Secretary's decisions are challenged in Federal 
court, and major projects could face years of delay in 
litigation.\8\
---------------------------------------------------------------------------
    \5\See, e.g., Ass'n of Am. R.R. v. U.S. Dep't of Transp., 721 F.3d 
666, 670 (D.C. Cir. 2013) (``Federal lawmakers cannot delegate 
regulatory authority to a private entity.''), vacated, on other 
grounds, Dep't of Transp. v. Ass'n of Am. R.R., 575 U.S.__(2015); see 
also Cong. Rsch. Serv., Memorandum to the Hon. Peter A. DeFazio on 
Analysis of Constitutional Issues Arising from a Proposal to Authorize 
a Federally Chartered Private Corporation to Provide Air Traffic 
Control Services (April 10, 2015).
    \6\21st Century AIRR Act, Sec. 211 (codifying 49 U.S.C. 90501).
    \7\Id. (codifying 49 U.S.C. Sec. 90705).
    \8\Id.
---------------------------------------------------------------------------
    The bill could also drive up the cost of air travel. Last 
year, Richard Anderson, then-CEO of Delta Air Lines, posited in 
a letter to Committee Chairman Shuster and Ranking Member 
DeFazio that ``[p]rivatization may increase consumer costs'' 
and asked, ``[W]ho will look out for the public interest after 
privatization?''\9\ Moreover, the Corporation would be too big, 
and too critical to fail. A longtime proponent of 
privatization, Robert Poole, acknowledged during testimony in 
the Committee's February 10, 2016, hearing that ``[c]ustomers 
would have to pay more'' if the corporation became insolvent. 
The U.K. government was forced to bail out the privatized 
British air traffic services provider in 2002, and Canada's 
provider was forced to take special measures to continue 
operating during the post-2001 crisis.\10\
---------------------------------------------------------------------------
    \9\Ltr. from Richard Anderson to The Hon. Bill Shuster and The Hon. 
Peter A. DeFazio, Feb. 2, 2016 (on file).
    \10\Gov't Accountability Office, Characteristics and Performance of 
Selected International Air Navigation Service Providers and Lessons 
Learned from Their Commercialization 25, Rpt. No. GAO-05-769 (2005); 
See Nav Canada, ``Details and Principles Regarding Proposed Revised 
Service Charges'' (Oct. 15, 2001), available at http://
www.navcanada.ca/EN/media/Publications/
Service%20Charge%20Announcements/SCA-2001-Details-EN.pdf; Nav Canada, 
``Notice of Revised Service Charges'' (Oct. 2, 2002), available at 
http://www.navcanada.ca/EN/media/Publications/
Service%20Charge%20Announcements/SCA-2002-Notice-Revised-EN.pdf.
---------------------------------------------------------------------------

                           Targeted Solutions

    Instead of privatization, we support targeted solutions: 
removing the FAA from the budget process and the vicissitudes 
of annual appropriations, and making serious, top-to-bottom 
reforms of the FAA's cumbersome personnel and procurement 
rules. These carefully constructed financial and management 
reforms solve all of the problems that H.R. 2997 purports to 
solve, while avoiding the tremendous harms that privatization 
would impose on our aviation system. During Committee 
consideration of H.R. 2997, we offered an amendment to strike 
the air traffic control privatization title and insert H.R. 
2800, the ``Aviation Funding Stability Act'', which provides 
such targeted reforms as off-budget, long-term funding for FAA 
programs, streamlined and more flexible personnel and 
procurement regulations, and modernization of air traffic 
control facilities and equipment. Regrettably, the amendment 
failed on a party-line vote.

                               Conclusion

    While we support bipartisan provisions of the bill 
reforming the FAA's certification processes, advancing the 
safe, responsible integration of unmanned aircraft into the 
National Airspace System, updating rules on flight attendant 
minimum rest, and others, we object to privatization of air 
traffic control as a risky experiment that threatens to delay 
modernization programs, reduce access, and drive up the cost of 
air travel.
                                   Peter A. DeFazio,
                                           Ranking Member.
                                   Eleanor Holmes Norton.
                                   Jerrold Nadler.
                                   Eddie Bernice Johnson.
                                   Elijah E. Cummings.
                                   Rick Larsen.
                                   Michael E. Capuano.
                                   Grace F. Napolitano.
                                   Daniel Lipinski.
                                   Steve Cohen.
                                   Albio Sires.
                                   John Garamendi.
                                   Henry C. ``Hank'' Johnson, Jr.
                                   Andre Carson.
                                   Richard M. Nolan.
                                   Dina Titus.
                                   Sean Patrick Maloney.
                                   Elizabeth H. Esty.
                                   Lois Frankel.
                                   Cheri Bustos.
                                   Jared Huffman.
                                   Julia Brownley.
                                   Frederica S. Wilson.
                                   Donald M. Payne, Jr.
                                   Alan S. Lowenthal.
                                   Brenda L. Lawrence.
                                   Mark DeSaulnier.

                                  [all]
```