1 

" ! HOUSE OF REPRESENTATIVES 115TH CONGRESS

1st Session 

REPORT

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]

SEPTEMBER 6, 2017.—Ordered to be printed 


E:\Seals\Congress.#13
21ST CENTURY AVIATION INNOVATION, REFORM, AND REAUTHORIZATION ACT 

U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

26–747 

" ! HOUSE OF REPRESENTATIVES 115TH CONGRESS

1st Session 

REPORT

2017

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]

SEPTEMBER 6, 2017.—Ordered to be printed 


E:\Seals\Congress.#13
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 

2 

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. 

3 

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. 

4 

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,’’. 

5 

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: 

‘‘§ 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. 

6 

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.’’. 

7 

(b) PROJECT GRANT WRITTEN ASSURANCES FOR LARGE AND MEDIUM HUB AIR- PORTS.— 

(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; 

8 

‘‘(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); 

9 

(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. 

10 

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.’’. 

11 

(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 performancebased 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-tocost 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— 

12 

‘‘(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 costshare 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.— 

13 

‘‘(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 

14 

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 publicuse 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. 

15 

(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 

16 

(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-thewall 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; Transfer of Air Traffic Services ................ 90301 ‘‘905. Regulation of Air Traffic Services Provider ................................................................................... 90501 ‘‘907. General Rights of Access to Airspace, Airports, and Air Traffic Services Vital for Ensuring Safe Operations for All Users ...................................................................... 90701 ‘‘909. Continuity of Air Traffic Services to Department of Defense and Other Public Agencies 90901 

‘‘911. Employee Management ......................................................................................................................... 91101 ‘‘913. Other Matters .......................................................................................................................................... 91301 ‘‘915. Congressional Oversight of Air Traffic Services Provider .......................................................... 91501 

‘‘CHAPTER 901—GENERAL PROVISIONS 

‘‘Sec. 

‘‘90101. Definitions. 

17 

‘‘§ 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. 

‘‘§ 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. 

18 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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— 

19 

‘‘(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. 

‘‘§ 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. 

20 

‘‘(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 manVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00024 Fmt 6659 Sfmt 6621 E:\HR\OC\HR296.XXX HR296
21 

ner 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. 

‘‘§ 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. 

‘‘§ 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— 

22 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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 

23 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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 

24 

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.— 

25 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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 

26 

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 collectivebargaining 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 

27 

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. 

‘‘§ 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. 

‘‘§ 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. 

28 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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 

29 

‘‘(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.— 

30 

‘‘(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. 

‘‘§ 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. 

31 

‘‘(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 AC- CESS.— 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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— 

32 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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 

33 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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 airVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00037 Fmt 6659 Sfmt 6621 E:\HR\OC\HR296.XXX HR296
34 

port, 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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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). 

‘‘§ 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. 

35 

‘‘91107. Collective-bargaining dispute resolution. 

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

‘‘91109. Prohibition on striking and other activities. 

‘‘91110. Legal action. 

‘‘§ 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). 

‘‘§ 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). 

36 

‘‘(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. 

37 

‘‘(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). 

‘‘§ 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)). 

‘‘§ 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. 

‘‘§ 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 recogVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00041 Fmt 6659 Sfmt 6621 E:\HR\OC\HR296.XXX HR296
38 

nized 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. 

‘‘§ 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. 

39 

‘‘(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. 

‘‘§ 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. 

40 

‘‘(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. 

‘‘§ 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). 

‘‘§ 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. 

41 

‘‘(b) TERMINATION.—An employee who participates in an activity described in subsection (a) shall be terminated from employment with the Corporation. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 

42 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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; 

43 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 

‘‘§ 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. 

44 

‘‘(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; 

45 

‘‘(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’’. 

46 

(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: 

47 

‘‘(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; 

48 

(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. 

49 

(D) Appropriate expertise, including expertise in certification and riskedbased 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— 

50 

(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: 

‘‘§ 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.— 

51 

‘‘(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 

52 

(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 

53 

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 as- sess— (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 

54 

(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 

55 

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 

56 

(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: 

57 

‘‘(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; 

58 

(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. 

59 

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. 

60 

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: 

61 

‘‘(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 transportcategory 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 transportcategory 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 riskbased 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). 

62 

‘‘(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: 

‘‘§ 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 

63 

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. 

64 

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: 

65 

‘‘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. 

‘‘§ 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. 

‘‘§ 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; 

66 

‘‘(ii) ensure that any civil unmanned aircraft system includes a senseand-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. 

67 

‘‘§ 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. 

‘‘§ 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; 

68 

‘‘(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. 

‘‘§ 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. 

‘‘§ 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. 

69 

‘‘(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 lowaltitude 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. 

‘‘§ 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. 

70 

‘‘(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. 

‘‘§ 45508. Operation of small unmanned aircraft 

‘‘(a) EXEMPTION AND CERTIFICATE OF WAIVER OR AUTHORIZATION FOR CERTAIN OP- ERATIONS.—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). 

‘‘§ 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; 

71 

‘‘(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). 

‘‘§ 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— 

72 

‘‘(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). 

‘‘§ 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 riskVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00076 Fmt 6659 Sfmt 6621 E:\HR\OC\HR296.XXX HR296
73 

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; 

74 

(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 ComVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00078 Fmt 6659 Sfmt 6621 E:\HR\OC\HR296.XXX HR296
75 

mittee 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; 

76 

(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. 

77 

‘‘(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: 

‘‘§ 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— 

78 

‘‘(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’’; 

79 

(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: 

‘‘§ 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 

80 

(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. 

81 

(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. 

82 

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— 

83 

(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. 

84 

(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; 

85 

‘‘(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— 

86 

‘‘(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 pubVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00090 Fmt 6659 Sfmt 6621 E:\HR\OC\HR296.XXX HR296
87 

lic 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 

88 

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; 

89 

(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 

90 

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. 

91 

(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. 

92 

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 

93 

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. 

94 

(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,’’. 

95 

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; 

96 

(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 longterm 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); 

97 

(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: 

98 

‘‘§ 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 

99 

(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 ARTI- CLES.— 

‘‘(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 proVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00103 Fmt 6659 Sfmt 6621 E:\HR\OC\HR296.XXX HR296
100 

duces 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.’’. 

101 

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 deescalating 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 

102 

1Federal 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. 2Federal 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-economicimpact-report.pdf. 3Federal 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. 4FAA Press Release, July 6, 2011. https://www.faa.gov/news/press_releases/ news_story.cfm?newsId=12903. 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. 

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. 

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, 

103 

6FAA Press Release, March 16, 2015. https://www.faa.gov/news/press_releases/ news_story.cfm?newsId=18434. 7Letter from Calvin Scovel, Inspector General, U.S. Department of Transportation, to Bill 

Shuster, Chairman, House Committee on Transportation and Infrastructure, September 30, 

2016. 8Office 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. 9Statement 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. 10Office 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. 

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. 

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

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

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 inVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00107 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
104 

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. 12Statement 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. 13Office 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. 14Office 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. 15 Id. 16Supra 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. 19This 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, 

creases—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

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

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

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

105 

p.2. This report claims initial estimates to be roughly $10 billion; however, a later GAO report 

states the $12 billion figure. 21Gerald 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. 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. 23The 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. 24 National Civil Aviation Review Commission, Avoiding Aviation Gridlock and Reducing the 

Accident Rate, December 1997. 25 Id. at 144. 26Gerald 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. 27 Robert W. Poole, The Urgent Need to Reform the FAA’s Air Traffic Control System, March 

2007, p. 18. 28Fiscal Year 1996 Department of Transportation and Related Agencies Appropriations Act, 

Section 347(a), P.L. 104–50, Nov. 15, 1995. 

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: 

—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

—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

—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

—In 2007, the Bush administration called for a hybrid, costbased 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

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 

106 

29Federal Aviation Reauthorization Act of 1996, Sections 253 & 276, P.L. 104–264, Oct. 9, 

1996. 30Fiscal Year 1996 Department of Transportation and Related Agencies Appropriations Act, Section 347(a), P.L. 104–50, Nov. 15, 1995. 31Wendell 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. 33 H.R. 4441, 114th Cong. (2016). 34Department 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. 

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. 

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. 

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

Today, the FAA, like other federal agencies, must conduct capital 

project planning, including efforts to modernize the ATC system, on 

107 

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. 43Statements 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. 44Statement 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. 

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 sequesterdriven 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, multiyear 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

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. 

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 

108 

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-Report12am2.pdf. 46 Id. at 61. 47 Id. 48 Id. 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. 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. 

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 nonprofit 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

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

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

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 governVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00112 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
109 

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. 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. 57Office 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. 60Dan Brown, Tom Berry, Steve Welman and E.J. Spear, The MITRE Corporation, CAA International Structures, October 2014. 61Studied 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. 

ment is necessary to realize the continued innovation and modernization required to ensure U.S. leadership.54

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

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

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 

110 

65 Id. at 9–10. 

the ANSP, improved efficiency of the ANSP, reduction in total cost 

to users, and improved participation by aviation stakeholders.65

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; 

111 

—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 

112 

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 ‘‘atlarge’’ 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, nearterm 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 

113 

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. 

114 

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 multistep 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 

115 

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, 

116 

66 CAA International Structures, MITRE Corporation, p. 7 (October 2014). 67 Id. at 7. 68 Id. at 9–10. 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-providerannounces-lowered-fees-us-should-embrace-same-model, (May 30, 2017). 70 Id. 71Office of the Inspector General, U.S. Department of Transportation, FAA Reforms Have Not 

Achieved Expected Cost, Efficiency and Modernization Outcomes, AV–2016–15 (2016). 

‘‘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

—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. —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

—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, 

117 

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. 76Statement 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 

Continued 

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

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 

118 

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 

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. 

—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. 

119 

77See H.R. 2997 section 211 (adding 49 U.S.C. 90301). 78See H.R. 2997 section 211 (adding 49 U.S.C. 90302). 79See, 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). 80See 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). 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). 82See 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). 

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

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

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 

120 

83See 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). 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). 87See, 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). 88See 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)). 89See 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). 

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

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 

121 

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’’). 91See H.R. 2997 section 211 (adding 49 U.S.C. 90313). 92See H.R. 2997 section 211 (adding 49 U.S.C. 90308). 93Dept. 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’’). 95See H.R. 2997 section 211 (adding 49 U.S.C. 90302). 96See 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)). 97See 14 C.F.R. 91.130. 98See 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)). 

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. 

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

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 commoncarriers granted license by the government to operate, the CorporaVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00125 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
122 

99See H.R. 2997 section 211 (adding 49 U.S.C. 90501–90502). 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). 101See 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). 102See 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). 103See H.R. 2997 section 211 (adding 49 U.S.C. 90313). 104See Id. 

tion must provide ATC services and may not deny them without 

governmental approval or authority to do so.99

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

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 

123 

105See H.R. 2997 section 211 (adding 49 U.S.C. 90502). 106See H.R. 2997 section 211 (adding 49 U.S.C. 90502 (requiring the Secretary to issue the 

final decision in a fee complaint)). 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). 108See 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’’). 109See H.R. 2997 section 211 (adding 49 U.S.C. 90502). 110See H.R. 2997 section 211 (adding 49 U.S.C. 90501–90502). 

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. 

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. 

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

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 

124 

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 

125 

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. 

126 

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 

127 

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; 

128 

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: 

129 

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; 

130 

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; 

131 

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: 

132 


Insert offset folio 142 here HR296.001

COMMITTEE 0:-.1 TRANSPORTATION AND INFRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOllSE OF REPRESENTATIVE -!15TH CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: DeJ;"azio 45 to H.R. 2997 

Vote: 34 Nays, 24 Yeas 

Yeas Navs Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

"Mr:"Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (7X) 

Mr. Cummings 

Mr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Sanford fiiC"" Mr. Woodall Esty 

Mr.Rokita Frankel 

Mr. Katko . Bustos 

Mr. Babin Huffman 

Mr. Graves (LA) x Ms. Brownley 

Mrs. Comstock X Ms. Wilson 

Mr. Rouzer X Mr. Payne 

Mr.Bost X Mr. Lowenthal 

Mr. Weber X lvlrs. Lmvrence 

Mr. LaMalfa X Mr. DeSaulnier 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

1-------c--

Mr. Ferguson X 

··-----· 

Mr. Mast X 

Mr. Lewis X 

1--

Yeas Nays Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
133 


Insert offset folio 143 here HR296.002

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -115m CONGRESS 

Number of Members: (34/27) Quorum: 31 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Norton 31 to H.R. 2997 

Vote: 33 Nays, 25 Yeas y eas , ays p resent 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. Lo!liondo X 

Mr. Graves (MO) I X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

1:-:--:c·: .. Mr. G1bbs X 

Mr. Webster ' X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry I X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr.Rokita X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr.Bost X 

Mr. Weber X 

Mr. LaMa! fa X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

1--· 

Working Quorum: 21 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (1X) 

Mr, Cummings 

Mr. Larsen 

lvlr. Capuano 

Mrs. Napolitmw 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

A1r. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

l>ilc<. Bustos 

Mr. Huffman 

Ms. Brovvnley 

Ms. Wilson 

Mr. Payne 

Mr. Lmventhal 

Mrs. Lawrence 

Mr. De Saulnier 

-------.. --·· 

y cas N avs p resent 

X 

X 

X 

·---- X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

"-=c-----·- X 

X 

X 

X 

X 

X 

·-· 
134 


Insert offset folio 144 here HR296.003

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -115n< CONGRESS 

Number of Members: (34/27) Quorum: 31 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Perry 51 to H.R. 2997 

Vote: 37 Nays, 21 Yeas 

Yeas Navs Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr.Gihhs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

~;-· 

Mr. Woodall X 

Mr. Rokita X 

Mr. Katko X 

Mr. Babin X i 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr. Bost X 

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westennan X 

Mr. Smucker X 

Mr. Mitchell X 

' Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis I X 

I 

__ , ___ . __ 

Working Quorum: 21 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (IX) 

Mr. Cummings 

Mr. Lmun 

Mr. Capuano 

M~e<. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Iltus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffman 

Ms. Brownley 

Ms. Wilson 

Mr. Payne --· Mr. Lowenthal 

Mrs. Lawrence 

Mr. DeSaulnier 

.. 

Yeas Nays Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

--1----
135 


Insert offset folio 145 here HR296.004

COMMITTEE 0:-.J TRANSPORTATION AND INFRASTRUCTURE 

FtJLL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -115m CONGRESS 

Number of Members: (34/27) Quorum: 31 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Nadler 22 to H.R. 2997 

Vote: 34 Nays, 24 Yeas y eas N ays p resent 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr. Rokita X 

Mr. Katko X 

Mr. Babin X 

1:-:--;:.-----·-----·· 

Mr. Graves (LA) x Mrs. Comstock x 

Mr. Rouzer X 

Mr.Bost X 

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westerman I X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

~- -

Working Quorum: 21 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (1X) 

Mr. Cummings 

Mr. Larsen 

Mr. Capuano -- Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffmnn 

Ms. Brownley 

Ms. Wilson 

Mr. Payne 

A1r. Lowenthal 

Mrs. Lawrence 

Mr. DeSaulnier 

--

y eas N ays p resent 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

= X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

--
136 


Insert offset folio 146 here HR296.005

COMMITTEE 0~ TRANSPORTATION AND l:NFRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOCSE OF REPRESENTATIVE-115TH CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: .Johnson (TX) 16 to H.R. 2997 

Vote: 33 Nays, 25 Yeas 

Yeas Navs Present 

Mr. Shuster X Mr. DeFazio 

Mr. Young X Ms. Norton 

Mr. Duncan X Mr. Nadler 

Mr. LoBiondo X Ms. Johnson (TX) 

Mr. Graves (MO) X .!vfr. CumminMS :-:--:-:-· 

Mr. Hunter X Mr. Larsen 

Mr. Crawford X Mr. Capuano 

Mr. Barletta X Mrs. Napolitano 

Mr. Farenthold X Mr. Lipinski 

Mr. Gibbs X Mr. Cohen 

Mr. Webster X Mr. Sires 

Mr. Denham X Mr. Garamendi 

Mr. Massie X Mr. Johmon (GA) 

Mr. Meadows X Mr. Carson 

Mr. Perry X Mr. Nolan 

Mr. Davis X Ms. Titus 

Mr. Sanford X Mr. Maloney 

Mr. Woodall X Ms.EHy 

Mr. Rokita X Ms. Frankel 

Mr. Katko X Mrs. Bustos 

Mr. Babin X Mr. Huffman 

Yeas 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

·····---·-· 

Mr. Graves (LA) X Ms. Brownley X 

Mrs. Comstock X Ms. Wilson X 

Mr. Rouzer X Mr. Payne X 

Mr. Bost X Mr. Lowenthal X ~--·· 

Mr. Weber X Mrs. LmtJrence X 

Mr.LaMalfa X lvfr. De Saulnier X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr.Faso X 

Mr. Ferguson X 

Mr. Mast X 

b-.- Mr. Lewis X 

Nays Present 
137 


Insert offset folio 147 here HR296.006

COMMITfEE ON TRANSPORTATION AND INFRASTRUCTURE 

FULL C0~1MITTEE- ROll. CALL 

U.S. HOUSE OF RI~PRESENTATIVE -ltSm CONGRESS 

Number of Members: (34/27) Quorum: 31 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Larsen 21 to H.R. 2997 

Vote: 34 Nays, 24 Yeas 

Yeas ~avs Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr. Rokita X 

Mr.Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr.Bost X 

Mr. Weber X 

Mr.LaMalfa X 

Mr. Westerman X 

Mr. Smucker X 

~:-----

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

~--

Mr. Lewis X 

\Vorking Quorum: 21 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (TX) 

!vfr. Cummings 

ft.Jr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi ··----· 

Mr. Johnson (GA) 

Mr. Carson -- Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffman 

Ms. Brownley 

Ms. Wilson 

Mr. Payne 

Mr. Lowenthal 

lvfrs. Lawrence ------- Mr. DeSaulnier 

--

Yeas Na 'S Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
138 


Insert offset folio 148 here HR296.007

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -115TH CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Lipinski 41 to H.R. 2997 

Vote: 34 Nays, 24 Yeas 

Yeas Nays Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie I 

I X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford I X 

Mr. Woodall X 

Mr. Rokita X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr. Bost X 

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (TX) 

Mr. Cummings 

Mr. Larsen 

Mr. Capumw 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

lYlr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffman 

Ms. Brownley 

Ms. Wilson 

Mr. Payne 

Mr. Lowenthal 

Mrs. Lawrence 

Mr. DeSaulnier 

.. 

Yeas Na •s Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

---

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

-··-
139 


Insert offset folio 149 here HR296.008

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTVIU.: 

FULL CO~!MITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -115<B CONGRESS 

Number of Members: (34/27) Quorum: 31 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Nolan 42 to H.R. 2997 

Vote: 341\'ays, 25 Yeas 

Yeas ~ays Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

~aves(MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr.Roldta X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr. Bost X .. 

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. l'crguson X 

Mr. Mast X 

Mr. Lewis X 

r---· 

I 

Working Quorum: 21 

Mr. DeFazio 

lvls. Norton 

Mr. Nadler 

Ms. Johnson (TX) 

l\llr. Cummings 

Mr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

lv!rs. Bustos 

Mr. Huffman 

Ms. Brownley 

Ms. Wilson 

Mr. Pa_r'ne 

Mr. Lowenthal 

Mrs. Lawrence 

Mr. DeSaulnier 

·-

Yeas Nays Present 

X 

X 

X 

X 

X 

·-- X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X ... 

X 

----

X 

X 

X 

X 

X 

X 
140 


Insert offset folio 150 here HR296.009

COM:\fiTTEE ON TRANSPORTATION AND l~FRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE-115>H CONGRESS 

Number of Members: (34/27) Quorum: 31 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Titus 13 to H.R. 2997 

Vote: 34 Nays, 25 Yeas 

Yeas Navs Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X ..• 

Mr. Massie X 

--·-

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr. Rokita X 

Mr.Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

!Mrs. Comstock X 

Mr. Rouzer X 

Mr.Bost X 

Mr. Weber i X 

Mr. LaMalfa X 

Mr. Westennan X 

-· 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X I 'M;::· Lewis X 

Working Quorum: 21 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnwn (TX) 

Mr. Cummings 

Mr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Upinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Iltus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffman 

Ms. Brownley 

Ms. Wilson -- Mr. Payne 

Mr. Lowenthal 

Mrs. Lm-vrence 

Mr. DeSaulnier 

... 

Yeas Navs Present 

X 

X 

X 

X 

X 

X 

X 

--··- X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
141 


Insert offset folio 151 here HR296.010

COMMITTEE 0:--.1 TRANSPORTATION AND INFRASTRUCTURE 

FULL CO~fMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESE~TATIVE -1157 1-1 CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Huffman 56 to H.R. 2997 

Vote: 32 Nays, 27 Yeas y eas J ays p resent 

Mr. Shuster X Mr. DeFazio 

Mr. Young X Ms. Norton 

Mr. Duncan I X Mr. Nadler 

Mr. LoBiondo X Ms. Johnson (7X) 

Mr. Graves (MO) X It.-fr. Cummings 

Mr. Hunter X Mr. Larsen 

Mr. Crawford I X Mr. Capuanl! -- Mr. Barletta X Mrs. Napolitano 

Mr. Farenthold X Mr. Lipinski 

Mr. Gibbs X Mr. Cohen 

Mr. Webster I X Mr_ Sires 

Mr. Denham X Mr. Garamendi 

Mr. Massie X Mr. Johnson (GA) 

Mr. Meadows X Mr. Carson 

Mr. Perry X Mr. Nolan 

Mr. Davis X Ms. Titus 

Mr. Sanford X Mr. Maloney 

Mr. Woodall X Ms. Esty 

Mr. Roldta X Ms. Frankel 

Mr. Katko X Mrs. Bustos 

Mr. Babin X Mr. Huffman ------- Mr. Graves (LA) X Ms. Brmvnley 

Mrs. Comstock X Ms. Wilson 

Mr. Rouzer I X lllfr. Payne 

Mr. Bost ' X Mr. Lowenthal r.-:--·- Mr. Weber X Mrs. Lawrence 

Mr. LLl\falfa X Mr. DeSaulnier 

Mr. Westerman X ! 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Paso I X 

Mr. Ferguson -+--X 

Mr. Mast f X 

Mr. Lewis X 

' 

y eas Nays p resent 

X -+- X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
142 


Insert offset folio 152 here HR296.011

COMMITTEE ON TRANSPORTATION AND lNFRASTRliCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -!15TH CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: DeJ<'azio 53 to H.R. 2997 

Vote: 34 Nays, 25 Yeas 

Yeas Nays Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

-· 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr.Rokita X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr. Bost I X 

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westcnnan X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

'M.;::-Lewis X 

I 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (TX) 

Mr. Cummings 

Mr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Gararnendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. 11tus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffman 

Ms. Brownley 

Ms. Wilson 

Mr. Payne 

Mr. Lawenthal 

'Mrs. Lawrence 

lY/r. DeSaulnier 

·----------- ··-· 

Yeas Navs Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
143 


Insert offset folio 153 here HR296.012

COMMITTEE ON TRANSPORTATION AND 1:-.IFRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE-115TH CONGRESS 

Number of Members: (34/27) Quorum: 31 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Norton 33 to H.R. 2997 

Vote: 30 Yeas, 29 Nays 

Yeas ~avs Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan X 

Mr. LoBiondo X 

Mr. Graves (MO) X -·---

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster I X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr. Rokita X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr. Bost X I 

Mr. Weber X 

Mr. LaMalfa X 

Mr. W esterrnan X 

Mr. Smucker X 

1:-:--:-:::-··· 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

Working Quorum: 21 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (TX) 

A1r. Cummings 

Mr. Larsen 

Mr. Cilpuarw 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. lluffinan 

Ms. Brownley 

Ms. Wilson 

Mr. Payne 

Mr. Lowenthal 

Mrs. Lawrence 

Mr. DeSaulnier 

I 

Yeas Nays llresent 

X 

X 

X 

X 

X 

X 

X 

···-····· X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
144 


Insert offset folio 154 here HR296.013

COMMITTEE ON TRANSPORTATION AND I~FRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -115TH CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Lipinski 39 to H.R. 2997 

Vote: 45 Nays~ 8 Yeas~ 1 Present 

Yeas Navs Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan 

Mr. LoBiondo X 

Mr. Graves (MO) X 

IMr. Hunter 

Mr. Crawford X 

Mr. Barletta X 

t.~+~old X 

. X 

IMr. Webster X 

Mr. Denham X 

Mr. f\.1assie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall 

Mr. Rokita X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr.Bost XMr. Weber X 

Mr.LaMalfa X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr.l'aso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (TX) 

lvfr. Cummings 

Mr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffman 

Ms. Brownley 

Ms. Wilson 

Mr. Payne 

Mr. Lowenthal 

Mrs. Lawrence 

Mr. DeSaulnier 

--------·· 

---------·· 

Yeas Navs Present 

X 

X 

X 

X 

X 

X 

X 1---------

X 

X 

X 

X 

X 

X 

- X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
145 


Insert offset folio 155 here HR296.014

COM:\iiTTEE ON TRANSPORTATIO~ At"l:D INl~RASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -115TH CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Lowenthal18 to H.R. 2997 

Vote: 30 Nays, 24 Yeas 

Yeas Na ·s Present 

Mr. Shuster X Mr. DeFazio 

Mr. Young X Ms. Norton 

Mr. Duncan Mr. Nadler 

Mr. LoBiondo X Ms. Johnson (1X) 

Mr. Graves (MO) X Mr. Cummings 

Mr. Hunter Nfr. Larsen 

Mr. Crawford X Mr. Capuano 

Mr. Barletta X Mrs. Napolitano 

Mr. Farenthold X Mr. Lipinski 

Mr. Gihbs X Mr. Cohen 

Mr. Webster X Mr. Sires 

Mr. Denham X Mr. Garamendi 

Mr. Massie X Mr. Johnson (GA) 

Mr. Meadows X Mr. Carson 

Mr. Perry X Afr. Nolan 

Mr. Davis X Ms. Titus 

Mr. Sanford X Mr. Maloney 

Mr. Woodall Ms. Esty 

Mr. Rokita X Ms. Frankel 

Mr. Katko X Mrs. Bustos 

Mr. Babin X Mr. Huffinan ···-------·-· 

Mr. Graves (LA) X Ms. Brownley 

Mrs. Comstock X Ms. Wilson 

Mr. Rouzer X Mr. Payne 

Mr.Bost X Mr. Lowenthal 

Mr. Weber X Mrs. Lawrence 

Mr. LaMalfa X Mr. DeSaulnier 

Mr. Westerman X 

-----·-- Mr. Srnucker X 

Mr. Mitchell X 

Mr. Paso X 

~---

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

------·-·· 

Yeas Na\'S Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

L_ __________ _L __ ~--~---J~---------------- ___ _i ___ _L __ ~ 
146 


Insert offset folio 156 here HR296.015

CO~MITTEE ON TRANSPORTATION AND INFRASTRUCTURE 

FULL COMMITIEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE-115m CO~GRESS 

Number of Members: (34/27) Quorum: 31 

Date: 06/27/17 P1·esiding: Shuster 

Amendment or matter voted on: Titus 11 to H.R. 2997 

Vote: 33 .'lays, 23 Yeas 

Yeas ~avs Present 

Mr. Shuster X 

Mr. Youug X 

Mr. Duncan 

!Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr.Rokita X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr.Bost X 

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

Working Quorum: 21 

Mr. DeFazio 

A1s. Norton 

Mr. Nadler 

Ms. Johnson (TX) 

A1r. Cummings 

Mr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

A1r. Carson 

Mr. Nolan 

M,. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huj]inan 

Ms. Brovmley 

Ms. Wilson 

Mr. Payne 

J'vfr. Lowenthal 

Mrs. Lawrence 

Mr. DeSaulnier 

Yeas ~avs Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

. 
147 


Insert offset folio 157 here HR296.016

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE 

FULL COM!>.!ITTEE- ROIL CALL 

U.S. HOUSE OF REPRESENTATIVE-115TH CONGRESS 

Number of :\fembers: (34127) Quorum: 31 Working Quorum: 21 

Date: 06127117 Presiding: Shuster 

Amendment or matter voted on: DeFazio 51 to H.R. 2997 

Vote: 33 Nays, 23 Yeas 

Yeas Navs Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr. Rokita X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr. Bost X 

f--=--c-----

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

-,----------

Mr. Lewis X 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (TX) 

Mr. Cwnmings 

Mr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Hufjinan - -

Ms. Brownley 

Ms. Wilson 

lvfr. Payne 

Mr. Lowenthal 

Mrs. Lmvrence 

Mr. De Saulnier 

Yeas Nays Present 

X 

X 

X 

X 

X 

-··-

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

f-------------j----j-----j---j-------------·--------l-----+---+------1 
148 


Insert offset folio 158 here HR296.017

COMMITTEE ON TRANSPORTATION AJ"'\;D INFRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF REPRESENTATIVE -115TH CONGRESS 

Number of Members: (34/27) Quorum: 31 

Date: (){}/27/17 Presiding: Shuster 

Amendment or matter voted on: Titus 12 to H.R. 2997 

Vote: 33 Nays, 23 Yeas 

Yeas Navs Present 

Mr. Shuster I X 

Mr. Young X 

Mr. Duncan 

Mr.LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr. Crawford X 

Mr. Barletta X 

Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X I 

Mr. Denham X i 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr. Rokita X 

Mr. Katko X 

Mr. Babin X 

Mr. Graves (LA) I X 

Mrs. Comstock X 

Mr. Rouzer X 

Mr.Bos.t X 

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Paso X 

Mr. Ferguson X 

Mr. Mast X 

----------··-

Mr. Lewis X 

Working Quorum: 21 

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson (1X) 

Mr. Cummings 

Mr. Larsen 

Mr. Capuano 

M~:>. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffman 

Ms. Brownley 

Ms. Wilson 

Mr. Payne 

Mr. Lowenthal 

Mrs. Lawrence 

Mr. De Saulnier 

--

Yeas Navs Present 

X 

X I X I 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
149 


Insert offset folio 159 here HR296.018

COMMITTEE ON TRANSPORTATION A.c'\!D INFRASTRUCTURE 

FULL COMMITTEE- ROLL CALL 

U.S. HOUSE OF RE.PRESENTATIVE-115TH CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter voted on: Lipinski 27 to H.R. 2997 

Vote: 38 Yeas, 18 Nays 

Yeas .Kavs Present 

Mr. Shuster X 

Mr. Young X 

Mr. Duncan 

Mr. LoBiondo X 

Mr. Graves (MO) X 

Mr. Hunter X 

Mr.Cmwford X I Mr. Barletta X I Mr. Farenthold X 

Mr. Gibbs X 

Mr. Webster X 

Mr. Denham X 

Mr. Massie X 

Mr. Meadows X 

Mr. Perry X 

Mr. Davis X 

Mr. Sanford X 

Mr. Woodall X 

Mr.Rok.ita X 

Mr.Katko +i Mr. Babin 

Mr. Graves (LA) 

Mrs. Comstock X 

-· 

Mr. Rouzer X 

Mr.Bost X 

Mr. Weber X 

Mr. LaMalfa X 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

-·-·-

Mr. DeFazio 

Ms. Norton 

Mr. Nadler 

Ms. Johnson ("IX) 

Mr. Cumm.ing.\' 

Mr. Larsen 

Mr. Capuano 

Mrs. Napolitano 

Mr. Lipinski 

Mr. Cohen 

Mr. Sires 

Mr. Garamendi 

Mr. Johnson (GA) 

Mr. Carson 

Mr. Nolan 

Ms. Titus 

Mr. Maloney 

Ms. Esty 

Ms. Frankel 

Mrs. Bustos 

Mr. Huffman 

M<. Brownley 

Ms. Wilson 

Mr. Payne 

Mr. Lowenthal 

Mrs. Lawrence 

Mr. DeSaulnier 

Yeas Nays Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
150 


Insert offset folio 160 here HR296.019

COMMITTEE ON TRANSPORTATION Al'ID I~FRASTRUCTVRI~ 

FULL COMMITTEE- ROD~ CALL 

U.S. HOUSE OF REPRESENTATIVE-115TH CONGRESS 

Number of Members: (34/27) Quorum: 31 Working Quorum: 21 

Date: 06/27/17 Presiding: Shuster 

Amendment or matter ''oted on: Ordering H.R. 2997 reported, as amended 

Vote: 32 Yeas, 25 Nays 

Yeas Navs Present 

Mr. Shuster X Mr. DeFazio 

Mr. Young X Ms. Norton 

Mr. Duncan r. Nadler 

Mr. LoBiondo X s. Johmon (TX) 

Mr. Graves (MO) X r. Cununings f:-:-c··· . Mr. Hunter X r. Larsen 

Mr. Crawford X Mr. Capuano 

Mr. Barletta X Mrs. Napolitano 

Mr. Farenthold X Mr. Lipinski 

Mr. Gibbs X Mr. Cohen 

Mr. Webster X Mr. Sires 

Mr. Denham X Mr. Garamendi -----

Mr. Massie X Mr. Johnson (GA) 

Mr. Meadows X Mr. Carson 

Mr. Perry X Mr. Nolan 

Mr. Davis X Ms. Titus 

Mr. Sanford X Mr. Maloney 

Mr. Woodall X Ms. Esty 

Mr. Rokita X Ms. Frankel 

Mr.Katko X Mrs. Bustos 

Mr. Babin X Mr. Huffinan 

Mr. Graves (LA) X Ms. Brownley 

Mrs. Comstock X Ms. Wilson 

Mr. Rouzer X Mr. Payne 

Mr. Bost X Mr. Lowenthal 

Mr. Weber X Mrs. Lawrence 

Mr.LaMalfa X Mr. DeSaulnier 

Mr. Westerman X 

Mr. Smucker X 

Mr. Mitchell X 

Mr. Faso X 

Mr. Ferguson X 

Mr. Mast X 

Mr. Lewis X 

Yeas Navs Present 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 
151 

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, notfor-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 trafVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00155 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
152 

fic 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 preVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00156 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
153 

empt 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. 

154 

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. 2The 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. 

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

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. 

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. 

155 

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 

156 

3President’s Commission on Budget Concepts, Report of the President’s Commission on Budget 

Concepts (October 1967), p.25. 4See 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. 

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

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. 

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 reveVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00160 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
157 

nues 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). 

158 

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 Services ............................................................................... 0.0 0.0 0.0 12.2 12.6 13.0 13.5 14.0 14.5 15.0 24.7 94.6 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. 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. 

159 

5See 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%20StructureFinal%20Report%5E1-15-16.pdf 

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. 

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 

160 

6The 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. 

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

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. 

161 

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 asVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00165 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
162 

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). 

sume 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

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 inVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00166 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
163 

crease 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 

164 

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 au- thorize 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-asyou-go procedures are shown in the following table. 

165 

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 

166 

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 

167 

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; 

168 

• 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 developVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00172 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
169 

ment 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. 

170 

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 

171 

‘‘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. 

172 

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; 

173 

$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. 

174 

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 multiphased 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 ReVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00178 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
175 

public 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 

176 

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. 

177 

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 

178 

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. 

179 

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 

180 

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 

181 

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. 

182 

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 perVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00186 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
183 

sonnel 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. 

184 

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. 

185 

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. 

186 

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. 

187 

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. 

188 

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 collectivebargaining 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 collectivebargaining 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 

189 

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: 

190 

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 CorporaVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00194 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
191 

tion 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). 

192 

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; PerformanceBased 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. 

193 

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 costeffective 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 

194 

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. 

195 

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 

196 

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. 

197 

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. 

198 

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. 

199 

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 UASrelated 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. 

200 

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 

201 

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. 

202 

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. 

203 

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 carryon 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. 

204 

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. 

205 

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. 

206 

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 

207 

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. 

208 

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. 

209 

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. 

210 

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. 

211 

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 

212 

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 

213 

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. 

I Department of Transportation ............................................................ 101 

* * * * * * * 

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

SUBTITLE I—DEPARTMENT OF 

TRANSPORTATION 

* * * * * * * 

CHAPTER 1—ORGANIZATION 

* * * * * * * 

§ 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. 

214 

(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; 

215 

(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 

216 

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 

217 

$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 

218 

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— 

ø(A) $9,653,000,000 for fiscal year 2012; 

ø(B) $9,539,000,000 for fiscal year 2013; 

ø(C) $9,596,000,000 for fiscal year 2014; 

ø(D) $9,653,000,000 for fiscal year 2015; and 

ø(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. 

ø(2) AUTHORIZED EXPENDITURES.—Out of amounts appropriated under paragraph (1), the following expenditures are 

authorized: 

ø(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. 

ø(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. 

ø(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 øfiscal 

years 2012 through 2017¿ fiscal years 2018 through 2020, if 

the Secretary determines that the funds appropriated under 

øparagraph (1)¿ paragraphs (1) and (2) are insufficient to meet 

the salary, operations, and maintenance expenses of the FedVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00222 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
219 

eral 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 øparagraph 

(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, 

220 

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 

221 

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 

222 

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 MEM- BERS.—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. 

223 

(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, 

224 

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— 

225 

(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 equip- ment 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.— 

226 

(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. 

227 

(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 

228 

(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 

229 

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 

230 

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 AdVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00234 Fmt 6659 Sfmt 6602 E:\HR\OC\HR296.XXX HR296
231 

ministrator 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 

232 

(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 

401 General Provisions ................................................................................. 40101 

* * * * * * * 

SUBPART III - SAFETY 

* * * * * * * 

455. Unmanned aircraft systems ................................................................... 45501 

* * * * * * * 

PART A—AIR COMMERCE AND SAFETY 

* * * * * * * 

SUBPART I—GENERAL 

* * * * * * * 

CHAPTER 401—GENERAL PROVISIONS 

§ 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 

233 

(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. 

234 

(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 wellfunctioning 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 

235 

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; øand¿ 

(E) similar restrictive practicesø.¿; 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. 

§ 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; 

236 

(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 

237 

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; 

238 

(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 

239 

(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). 

240 

(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. 

§ 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. 

241 

(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) øThe 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. øThe 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. 

ø(2) The Administrator shall prescribe air traffic regulations on 

the flight of aircraft (including regulations on safe altitudes) for— 

ø(A) navigating, protecting, and identifying aircraft; 

ø(B) protecting individuals and property on the ground; 

ø(C) using the navigable airspace efficiently; and 

ø(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 øAdministrator¿ Secretary , in consultation with the Secretary of Defense, shall— 

(A) establish areas in the airspace the øAdministrator¿ 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 øAdministrator¿ Secretary cannot identify, locate, and control with available facilities in those areas. 

242 

(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. 

§ 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 øsection 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 appliVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00246 Fmt 6659 Sfmt 6603 E:\HR\OC\HR296.XXX HR296
243 

ances 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. 

* * * * * * * 

§ 40106. Emergency powers 

(a) DEVIATIONS FROM REGULATIONS.—Appropriate military authority may authorize aircraft of the armed forces of the United 

States to deviate from øair 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. 

244 

§ 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. 

ø(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. 

* * * * * * * 

§ 40109. Authority to exempt 

(a) AIR CARRIERS AND FOREIGN AIR CARRIERS NOT ENGAGED DI- RECTLY 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 

245 

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; 

246 

(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 

ø(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. 

ø(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. 

§ 40110. General procurement authority 

(a) GENERAL.—In carrying out this part, the Administrator of the 

Federal Aviation Administration— 

247 

(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; 

248 

(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: 

249 

(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 MANUFAC- TURED 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 

250 

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. 

* * * * * * * 

§ 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 

251 

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 employVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00255 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
252 

ee’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. 

§ 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 lowemission 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 gasVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00256 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
253 

oline 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 zeroemission 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 øcharge 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, øor $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. 

ø(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— 

ø(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 improvVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00257 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
254 

ing 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 

ø(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 øspecified in paragraphs (1) and (4)¿ specified in paragraph 

(1) , the Secretary may authorize a passenger facility charge øimposed 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 øspecified in paragraphs (1), (4), and (6)¿ specified in paragraphs (1) and (6) , 

the Secretary may authorize a passenger facility charge øimposed 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 

255 

(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. 

256 

(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; 

257 

(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 recVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00261 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
258 

ordkeeping 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.— 

259 

(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 COMPLI- ANCE.—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 øAT NONHUB AIRPORTS¿.— 

(1) IN GENERAL.—The Secretary shall establish a pilot program to test alternative procedures for authorizing eligible 

agencies for ønonhub¿ 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. 

260 

(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 airportrelated project if— 

(1) the eligible agency seeking to impose the new charge con- trols 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). 

* * * * * * * 

§ 40122. Federal Aviation Administration personnel management system 

(a) IN GENERAL.— 

261 

(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 

262 

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 exVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00266 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
263 

perts 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; 

264 

(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. 

265 

(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. 

* * * * * * * 

§ 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 noncrewmember’’ 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. 

266 

(b) AIRCRAFT OWNED BY GOVERNMENTS.—An aircraft described in 

subparagraph (A), (B), (C), øor (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. 

* * * * * * * 

§ 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.— 

267 

(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. 

268 

(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 øunder 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 

269 

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; 

270 

(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. 

271 

(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; 

272 

(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 acVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00276 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
273 

cordance 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 

274 

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-incommand 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. 

* * * * * * * 

SUBPART II—ECONOMIC REGULATION 

* * * * * * * 

CHAPTER 413—FOREIGN AIR TRANSPORTATION 

* * * * * * * 

§ 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— 

275 

(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 øunder an agreement with the United States Government; or¿; and 

(B) øthe 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. 

* * * * * * * 

§ 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 

276 

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 

277 

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.— øAn 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. 

* * * * * * * 

278 

CHAPTER 417—OPERATIONS OF CARRIERS 

SUBCHAPTER I—REQUIREMENTS 

Sec. 

41701. Classification of air carriers. 

* * * * * * * 

ø41718. 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 

* * * * * * * 

§ 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. 

279 

ø(d)¿ (e) REGULATIONS.—The Secretary shall prescribe such regulations as are necessary to carry out this section. 

* * * * * * * 

§ 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.— 

280 

(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 governmentimposed 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 checkin 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. 

* * * * * * * 

281 

§ 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 

§ 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 øWendell 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— 

282 

(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 ELIGI- BLE 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. 

* * * * * * * 

§ 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; 

283 

(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 

284 

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. 

* * * * * * * 

§ 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) ø$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 

285 

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. 

§ 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: 

ø(1) SIZE.—For calendar year 1997, the airport serving the 

community or consortium was not larger than a small hub airport, and— 

ø(A) had insufficient air carrier service; or 

ø(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 

286 

(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 

øonce,¿ 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; 

ø(E)¿ (F) the assistance will be used in a timely fashion; 

and 

ø(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.— 

287 

(1) IN GENERAL.—The Secretary may make agreements to 

provide assistance under this section. 

ø(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; 

288 

(B) assurances that the applicant will provide the nonFederal 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 

* * * * * * * 

§ 41902. Schedules for certain transportation of mail 

(a) REQUIREMENT.—Except as provided in øsection 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 

289 

(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. 

* * * * * * * 

§ 41907. Weighing mail 

The United States Postal Service may weigh mail transported by 

aircraft between places in Alaska and make statistical øand - 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. 

* * * * * * * 

§ 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 øon 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); 

290 

(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; øand¿ 

(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 problemsø.¿; and 

(4) the air carrier’s customer service plan. 

ø(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— 

ø(1) prominently displayed signs of the carrier at the airport 

ticket counters in the United States where the air carrier operates; and 

ø(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. 

§ 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. 

ø(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 

291 

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. 

§ 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 

* * * * * * * 

§ 44112. Limitation of liability 

(a) DEFINITIONS.—In this section— 

292 

(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 øon 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 

§ 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.— øThe 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; 

293 

(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; øand¿ 

(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)ø.¿; 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 

294 

(vi) highlight the research and development technology 

transfer activities that promote technology sharing among government, industry, and academia through the StevensonWydler 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. 

§ 44502. General facilities and personnel authority 

(a) GENERAL AUTHORITY.—(1) øThe 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) øThe 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) øThe 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. 

ø(4) PURCHASE OF INSTRUMENT LANDING SYSTEM.— 

ø(A) ESTABLISHMENT OF PROGRAM.—The Secretary shall purchase precision approach instrument landing system equipment for installation at airports on an expedited basis. 

ø(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.¿ 

ø(5)¿ (4) IMPROVEMENTS ON LEASED PROPERTIES.— øThe 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— 

295 

(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.— øExcept¿ 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 øthe 

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 øby 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 øAdministrator of the Federal Aviation Administration¿ 

Secretary of Transportation is given reasonable prior notice so that 

the øAdministrator of the Federal Aviation Administration¿ Secretary of Transportation may advise the appropriate committees of 

øCongress¿ 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 øAdministrator 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 øAdministrator of the Federal Aviation Administration¿ Secretary of 

Transportation is given reasonable prior notice so øthat 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 

296 

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.— øAn 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. 

* * * * * * * 

§ 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; 

297 

(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 computeraided 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 oneyear periods. 

298 

(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— 

299 

(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 APPLI- CANTS.—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). 

300 

(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 FAAAMC-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. 

* * * * * * * 

301 

44736. Organization designation authorizations. 

44737. Training on human trafficking for certain staff. 

§ 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.— 

302 

(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; 

303 

(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. 

* * * * * * * 

§ 44704. Type certificates, production certificates, øairworthiness 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 appliVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00307 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
304 

cant 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 AU- GUST 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 airVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00308 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
305 

craft, 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, proVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00309 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
306 

peller, 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. 

307 

(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. 

* * * * * * * 

§ 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 øair 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 

308 

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; øand¿ 

(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 

ø(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 chapVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00312 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
309 

ter 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 READI- NESS.—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. 

* * * * * * * 

§ 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, unVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00313 Fmt 6659 Sfmt 6603 E:\HR\OC\HR296.XXX HR296
310 

less 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 

311 

(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. 

§ 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 

* * * * * * * 

§ 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. 

312 

(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), ø44703(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), ø44703(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. 

* * * * * * * 

§ 45305. Registration, certification, and related fees 

(a) GENERAL AUTHORITY AND FEES.— øSubject 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. 

ø(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. 

ø(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— 

313 

(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. 

§ 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 AUTHORIZA- TION.—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. 

314 

(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. 

§ 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; 

315 

(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 ARC- TIC.— (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 reVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00319 Fmt 6659 Sfmt 6603 E:\HR\OC\HR296.XXX HR296
316 

search 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. 

§ 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. 

317 

(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. 

§ 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; 

318 

(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. 

§ 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 

319 

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. 

§ 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. 

320 

(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 lowaltitude 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. 

§ 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 

321 

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. 

§ 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— 

322 

(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). 

§ 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 communitybased 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 

323 

(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). 

§ 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, performVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00327 Fmt 6659 Sfmt 6603 E:\HR\OC\HR296.XXX HR296
324 

ance-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). 

§ 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 

325 

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. 

* * * * * * * 

326 

SUBPART IV—ENFORCEMENT AND PENALTIES 

* * * * * * * 

CHAPTER 461—INVESTIGATIONS AND PROCEEDINGS 

* * * * * * * 

§ 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, øor 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. 

* * * * * * * 

327 

CHAPTER 463—PENALTIES 

§ 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), øor 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), øor 

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. 

328 

(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. 

329 

(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 

330 

(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. 

331 

(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), øor 

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). 

* * * * * * * 

332 

CHAPTER 465—SPECIAL AIRCRAFT JURISDICTION OF 

THE UNITED STATES 

Sec. 

46501. Definitions. 

* * * * * * * 

ø46503. Repealed.¿ 

* * * * * * * 

* * * * * * * 

PART B—AIRPORT DEVELOPMENT AND NOISE 

* * * * * * * 

CHAPTER 471—AIRPORT DEVELOPMENT 

SUBCHAPTER I—AIRPORT IMPROVEMENT 

Sec. 

47101. Policies. 

* * * * * * * 

ø47136. Inherently low-emission airport vehicle pilot program. 

ø47136a. Zero-emission airport vehicles and infrastructure.¿ 

47136. Zero-emission airport vehicles and infrastructure. 

* * * * * * * 

ø47140. Airport ground support equipment emissions retrofit pilot program. 

ø47140a. 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 

* * * * * * * 

§ 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 

333 

(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 

334 

(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. 

335 

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 

336 

(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. 

337 

(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— 

338 

(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. 

* * * * * * * 

§ 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 øSeptember 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. 

* * * * * * * 

339 

§ 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 

340 

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 cirVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00344 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
341 

cuit 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. 

§ 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— 

342 

(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 

343 

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 

344 

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; øand¿ 

(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 

imposeø.¿; 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. 

345 

(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). 

346 

(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 publicuse 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 operVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00350 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
347 

ated 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. 

348 

(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 LANDUSE 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)). 

349 

(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.— 

350 

(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 

351 

(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 

352 

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 

353 

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 øOctober 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 

354 

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. 

355 

(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. 

* * * * * * * 

§ 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— 

356 

(1) 75 percent for a project at a øprimary 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 

ø(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 

357 

(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 COMMU- NITIES.—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. 

* * * * * * * 

§ 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— 

358 

(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, øor 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, øor 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. 

* * * * * * * 

§ 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— 

359 

(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. 

360 

(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: 

361 

(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 

362 

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 

363 

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— 

364 

(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. 

§ 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 distribVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00368 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
365 

uted 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 

366 

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). 

ø(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.¿ 

ø(j)¿ (i) MARSHALL ISLANDS, MICRONESIA, AND PALAU.—For øfiscal years 2012 through 2017¿ fiscal years 2017 through 2023 , the 

367 

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. 

* * * * * * * 

§ 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 reVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00371 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
368 

quirements 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 avail- able 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 apporVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00372 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
369 

tionment 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 DISCRE- TIONARY 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. 

* * * * * * * 

§ 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; 

370 

(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— 

371 

(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 

372 

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). 

* * * * * * * 

§ 47123. Nondiscrimination 

øThe 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). 

§ 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.— 

373 

(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 øexceeds 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. 

374 

(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. 

ø(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 

375 

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 . 

ø(B) ELIGIBILITY.—An airport sponsor shall be eligible for a 

grant under this paragraph only if— 

ø(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 

ø(II) construction of a nonapproach control tower would 

qualify the sponsor to be eligible to participate in such program; 

ø(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; 

ø(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 

376 

cost of the contract to operate the tower to be constructed 

under this paragraph; 

ø(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 

ø(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— 

ø(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 

ø(II) the selection of the tower for funding is based 

on objective criteria. 

ø(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 

377 

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.— øThe 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. 

378 

(2) COSTS TO BE CONSIDERED.—In establishing a benefit-tocost 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). 

* * * * * * * 

379 

§ 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 ønot 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. 

* * * * * * * 

380 

ø§ 47136. Inherently low-emission airport vehicle pilot program 

ø(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. 

ø(b) LOCATION IN AIR QUALITY NONATTAINMENT AREAS.— ø(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)). 

ø(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. 

ø(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. 

ø(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. 

ø(e) MAXIMUM AMOUNT.—Not more than $2,000,000 may be expended under the pilot program at any single public-use airport. 

ø(f) TECHNICAL ASSISTANCE.— ø(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. 

ø(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). 

ø(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. 

ø(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— 

ø(1) an evaluation of the effectiveness of the pilot program; 

ø(2) an identification of other public-use airports that expressed an interest in participating in the pilot program; and 

381 

ø(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 publicuse airports. 

ø(i) INHERENTLY LOW-EMISSION VEHICLE ACTIVITY DEFINED.—In 

this section, the term ‘‘inherently low-emission vehicle activity’’ 

means— 

ø(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— 

ø(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; 

ø(B) are labeled in accordance with section 88.312-93(c) 

of such title; and 

ø(C) are located or primarily used at public-use airports; 

ø(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— 

ø(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; 

ø(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 

ø(C) are located or primarily used at public-use airports; 

ø(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 

ø(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).¿ 

§ ø47136a.¿ 47136. Zero-emission airport vehicles and infrastructure 

ø(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. 

ø(b) LOCATION IN AIR QUALITY NONATTAINMENT AREAS.— 

ø(1) IN GENERAL.—A public-use airport may be eligible for 

participation in the program only if the airport is located in a 

382 

nonattainment area (as defined in section 171 of the Clean Air 

Act (42 U.S.C. 7501)). 

ø(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. 

ø(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. 

ø(e) TECHNICAL ASSISTANCE.— 

ø(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. 

ø(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. 

383 

(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 øsection 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 zeroemission 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. 

* * * * * * * 

ø§ 47140. Airport ground support equipment emissions retrofit pilot program 

ø(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. 

ø(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). 

ø(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. 

384 

ø(d) MAXIMUM AMOUNT.—Not more than $500,000 may be expended under the pilot program at any single commercial service 

airport. 

ø(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. 

ø(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.¿ 

§ ø47140a.¿ 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. 

§ 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. 

385 

(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. 

386 

(f) SUNSET.—This section shall not be in effect after øSeptember 

30, 2017¿ September 30, 2023 . 

* * * * * * * 

SUBCHAPTER III—AVIATION DEVELOPMENT 

STREAMLINING 

§ 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 ENVIRON- MENTAL REVIEW PROCESS.— (1) AIRPORT CAPACITY ENHANCEMENT PROJECTS AT CON- GESTED 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.); 

387 

(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 COORDI- NATED 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 environmentalrelated 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 enviVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00391 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
388 

ronmental 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 

389 

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. ø4371¿ 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 

* * * * * * * 

§ 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. 

ø(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 

390 

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. 

§ 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 

391 

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 

392 

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; øand¿ 

(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 Regulationsø.¿; 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. 

393 

(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. 

* * * * * * * 

ø48112. Adjustment to AIP program funding.¿ 

* * * * * * * 

394 

§ 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: 

ø(1) $2,731,000,000 for fiscal year 2012. 

ø(2) $2,715,000,000 for fiscal year 2013. 

ø(3) $2,730,000,000 for fiscal year 2014. 

ø(4) $2,730,000,000 for fiscal year 2015. 

ø(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 lifecycle costs of which equal or exceed $50,000,000. 

§ 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. 

* * * * * * * 

§ 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 

øsection 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 

395 

(6) $3,998,000,000 for fiscal year 2023. 

(b) AVAILABILITY OF AMOUNTS.—Amounts made available under 

subsection (a) shall remain available until expended. 

* * * * * * * 

§ 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. 

* * * * * * * 

ø§ 48112. Adjustment to AIP program funding 

øOn 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— 

ø(1) the amount authorized to be appropriated under section 

48101 for such fiscal year; exceeds 

ø(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.¿ 

§ 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. 

§ 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 

396 

(ii) øin 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. 

397 

(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 Grantsin-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. 

901. General Provisions ................................................................................... 90101 

903. Establishment of Air Traffic Services Provider; Transfer of Air 

Traffic Services ..................................................................................... 90301 

905. Regulation of Air Traffic Services Provider ...................................... 90501 

907. General Rights of Access to Airspace, Airports, and Air Traffic 

Services Vital for Ensuring Safe Operations for All Users ........ 90701 

909. Continuity of Air Traffic Services to Department of Defense and 

Other Public Agencies ......................................................................... 90901 

911. Employee Management ........................................................................... 91101 

913. Other Matters ............................................................................................ 91301 

915. Congressional Oversight of Air Traffic Services Provider ............. 91501 

CHAPTER 901—GENERAL PROVISIONS 

Sec. 

90101. Definitions. 

§ 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. 

398 

(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. 

§ 90301. Establishment of Corporation 

(a) FEDERAL CHARTER.—There is established a federally chartered, not-for-profit corporation to be known as the ‘‘American Air 

399 

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. 

§ 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. 

§ 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. 

§ 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. 

400 

(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. 

§ 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. 

401 

(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. 

§ 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. 

402 

(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 twothirds 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— 

403 

(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. 

404 

(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. 

§ 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. 

405 

(d) PROHIBITION ON INDEMNIFICATION AND CERTAIN INSUR- ANCE.—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. 

§ 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. 

§ 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. 

§ 90310. Advisory Board 

(a) ESTABLISHMENT.—There shall be an Advisory Board of the 

Corporation. 

(b) DUTIES.—The Advisory Board— 

406 

(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. 

§ 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.— 

407 

(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. 

§ 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 

408 

(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. 

§ 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 

409 

(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. 

410 

(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. 

§ 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. 

§ 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. 

§ 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, 

411 

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 CorVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00415 Fmt 6659 Sfmt 6603 E:\HR\OC\HR296.XXX HR296
412 

poration 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. 

413 

(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. 

§ 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, multifunction displays, flight information services, moving map 

displays, terrain databases, airport lighting, and mountain 

pass cameras. 

414 

(c) CONSOLIDATION AND REALIGNMENT OF TRANSFERRED SERV- ICES 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. 

§ 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. 

§ 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. 

§ 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. 

415 

(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. 

§ 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. 

416 

(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.— 

417 

(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. 

§ 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 

418 

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. 

419 

(e) PAYMENT UNDER PROTEST; GUARANTEE OF AIR TRAFFIC SERV- ICES 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. 

§ 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. 

420 

§ 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. 

§ 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. 

§ 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. 

§ 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. 

421 

§ 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. 

§ 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. 

§ 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. 

422 

§ 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 publicuse 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.— 

423 

(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. 

§ 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. 

§ 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. 

§ 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. 

§ 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 supVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00427 Fmt 6659 Sfmt 6603 E:\HR\OC\HR296.XXX HR296
424 

port from the Corporation after the date of transfer and on an ongoing basis. 

§ 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. 

§ 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. 

§ 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). 

§ 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. 

§ 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 

425 

(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). 

§ 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 

426 

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. 

427 

(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). 

428 

§ 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 LaborManagement 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)). 

§ 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 

429 

include, or be modified to include, any supervisor or management official, as those terms are defined in section 7103(a) of 

title 5. 

§ 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— 

430 

(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. 

§ 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. 

§ 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 

431 

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 labormanagement 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. 

432 

(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. 

§ 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— 

433 

(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). 

§ 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. 

§ 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 CorporaVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00437 Fmt 6659 Sfmt 6603 E:\HR\OC\HR296.XXX HR296
434 

tion 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. 

§ 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. 

§ 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 

435 

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 AC- TIONS.—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 

436 

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 EMPLOY- EES 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. 

§ 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. 

§ 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, 

437 

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. 

§ 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 

438 

(2) the Secretary shall submit the report to Congress. 

§ 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. 

§ 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 

* * * * * * * 

439 

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 øfiscal 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 secVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00443 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
440 

tion 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 øSeptember 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 

øSec. 333. Special rules for certain unmanned aircraft systems. 

øSec. 334. Public unmanned aircraft systems.¿ 

* * * * * * * 

øSec. 336. Special rule for model aircraft.¿ 

* * * * * * * 

TITLE III—SAFETY 

* * * * * * * 

441 

Subtitle B—Unmanned Aircraft Systems 

* * * * * * * 

SEC. 332. INTEGRATION OF CIVIL UNMANNED AIRCRAFT SYSTEMS 

INTO NATIONAL AIRSPACE SYSTEM. 

ø(a) REQUIRED PLANNING FOR INTEGRATION.— 

ø(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. 

ø(2) CONTENTS OF PLAN.—The plan required under paragraph (1) shall contain, at a minimum, recommendations or 

projections on— 

ø(A) the rulemaking to be conducted under subsection 

(b), with specific recommendations on how the rulemaking 

will— 

ø(i) define the acceptable standards for operation 

and certification of civil unmanned aircraft systems; 

ø(ii) ensure that any civil unmanned aircraft system 

includes a sense and avoid capability; and 

ø(iii) establish standards and requirements for the 

operator and pilot of a civil unmanned aircraft system, 

including standards and requirements for registration 

and licensing; 

ø(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; 

ø(C) a phased-in approach to the integration of civil unmanned aircraft systems into the national airspace system; 

ø(D) a timeline for the phased-in approach described 

under subparagraph (C); 

ø(E) creation of a safe 

ø(F) airspace designation for cooperative manned and 

unmanned flight operations in the national airspace system; 

ø(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; 

ø(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 

ø(I) incorporation of the plan into the annual NextGen 

Implementation Plan document (or any successor document) of the Federal Aviation Administration. 

ø(3) DEADLINE.—The plan required under paragraph (1) 

shall provide for the safe integration of civil unmanned aircraft 

442 

systems into the national airspace system as soon as practicable, but not later than September 30, 2015. 

ø(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). 

ø(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— 

ø(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— 

ø(i) the role of the unmanned aircraft systems test 

ranges established under subsection (c) and the Unmanned Aircraft Systems Center of Excellence; 

ø(ii) performance objectives for unmanned aircraft 

systems that operate in the national airspace system; 

and 

ø(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; 

ø(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; 

ø(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 

ø(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. 

ø(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— 

ø(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; 

443 

ø(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 

ø(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 øSeptember 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 

444 

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. 

ø(d) EXPANDING USE OF UNMANNED AIRCRAFT SYSTEMS IN ARCTIC.— 

ø(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. 

ø(2) AGREEMENTS.—To implement the plan under paragraph 

(1), the Secretary may enter into an agreement with relevant 

national and international communities. 

ø(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.¿ 

* * * * * * * 

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

ø(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. 

ø(b) ASSESSMENT OF UNMANNED AIRCRAFT SYSTEMS.—In making 

the determination under subsection (a), the Secretary shall determine, at a minimum— 

ø(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 

ø(2) whether a certificate of waiver, certificate of authorization, or airworthiness certification under section 44704 of title 

445 

49, United States Code, is required for the operation of unmanned aircraft systems identified under paragraph (1). 

ø(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. 

øSEC. 334. PUBLIC UNMANNED AIRCRAFT SYSTEMS. 

ø(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— 

ø(1) expedite the issuance of a certificate of authorization 

process; 

ø(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; 

ø(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 

ø(4) provide guidance on a public entity’s responsibility when 

operating an unmanned aircraft without a civil airworthiness 

certificate issued by the Administration. 

ø(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. 

ø(c) AGREEMENTS WITH GOVERNMENT AGENCIES.— ø(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. 

ø(2) CONTENTS.—The agreements shall— 

ø(A) with respect to an application described in paragraph (1)— 

ø(i) provide for an expedited review of the application; 

ø(ii) require a decision by the Administrator on approval or disapproval within 60 business days of the 

date of submission of the application; and 

ø(iii) allow for an expedited appeal if the application 

is disapproved; 

ø(B) allow for a one-time approval of similar operations 

carried out during a fixed period of time; and 

ø(C) allow a government public safety agency to operate 

unmanned aircraft weighing 4.4 pounds or less, if operated— 

ø(i) within the line of sight of the operator; 

ø(ii) less than 400 feet above the ground; 

446 

ø(iii) during daylight conditions; 

ø(iv) within Class G airspace; and 

ø(v) outside of 5 statute miles from any airport, heliport, seaplane base, spaceport, or other location with 

aviation activities.¿ 

* * * * * * * 

øSEC. 336. SPECIAL RULE FOR MODEL AIRCRAFT. 

ø(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— 

ø(1) the aircraft is flown strictly for hobby or recreational 

use; 

ø(2) the aircraft is operated in accordance with a communitybased set of safety guidelines and within the programming of 

a nationwide community-based organization; 

ø(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; 

ø(4) the aircraft is operated in a manner that does not interfere with and gives way to any manned aircraft; and 

ø(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)). 

ø(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. 

ø(c) MODEL AIRCRAFT DEFINED.—In this section, the term ‘‘model 

aircraft’’ means an unmanned aircraft that is— 

ø(1) capable of sustained flight in the atmosphere; 

ø(2) flown within visual line of sight of the person operating 

the aircraft; and 

ø(3) flown for hobby or recreational purposes.¿ 

TITLE IV—AIR SERVICE 

IMPROVEMENTS 

Subtitle A—Passenger Air Service 

Improvements 

* * * * * * * 

447 

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; 

ø(3)¿ (4) State or local governments with expertise in consumer protection matters; and 

ø(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. 

448 

(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). 

ø(g)¿ (h) REPORT TO CONGRESS.—Not later than February 1 of 

each of the øfirst 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. 

ø(h)¿ (i) TERMINATION.—The advisory committee established 

under this section shall terminate on øSeptember 30, 2017¿ September 30, 2023 . 

* * * * * * * 

449 

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 øSecretary¿ 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 CON- TRACTS.— 

(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, øthe 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 øsection 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. 

450 

(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.— øThe purpose of the report shall be—¿ 

ø(A) to support the transition to the Next Generation Air 

Transportation System; and¿ 

ø(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. 

ø(4) INPUT.—The report shall be developed by the Administrator (or the Administrator’s designee)— 

ø(A) in coordination with the Chief NextGen Officer and 

the Chief Operating Officer of the Air Traffic Organization 

of the FAA; and 

ø(B) with the participation of— 

ø(i) representatives of labor organizations representing operations and maintenance employees of 

the air traffic control system; and 

ø(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. 

451 

(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 AD- MINISTRATOR.—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 airVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00455 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
452 

port purposes pursuant to section 16 of the Federal Airport Act (60 

Stat. 179) øor 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. 

ø(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. 

ø(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. 

ø(c) APPLICATION.—The regulations issued under subsection (a) 

shall ensure that— 

ø(1) all covered towers constructed on or after the date on 

which such regulations take effect are marked in accordance 

with subsection (b); and 

ø(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 

453 

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). 

ø(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 øself-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 aboveground 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; øor¿ 

(V) is a street light erected or maintained by a 

Federal, State, local, or tribal entityø.¿; 

(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 deterVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00457 Fmt 6659 Sfmt 6601 E:\HR\OC\HR296.XXX HR296
454 

mines 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. 

ø(e)¿ (c) DATABASE.—The Administrator shall— 

ø(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; øand¿ 

(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 

designationø.¿; 

(5) ensure that the tower information in the database is deidentified 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. 

* * * * * * * 

§ 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— 

455 

(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. 

* * * * * * * 

456 


Insert offset folio 488 here HR296.020

COMMITTEE ON WAYS AND MEANS 

U.S. HOUSE OF REPRESENTATIVES 

WASHINGTON. DC 20515 

The Honorable Bill Shuster 

Chairman 

July 11. 2017 

Committee on Transportation and Infrastructure 

2165 Rayburn House Office Building 

Washington. D.C. 20515 

Dear Chairman Shuster. 

I am writing with respect to H.R. 2997, the ·'21st Century AIRR Act.'" As a result of your having 

consulted with us on provisions on which the Committee on Ways and Means has a jurisdictional 

interest, I will not request a sequential referral on this measure. 

The Committee on Ways and Means takes this action with the mutual understanding that we do 

not waive any jurisdiction over the subject matter contained in this or similar legislation, and the 

Committee will be appropriately consulted and involved as the bill or similar legislation moves 

forward so that we may address any remaining issues that fall within our jurisdiction. The 

Committee also reserves the right to seek appointment of an appropriate number of conferees to 

any House-Senate conference involving this or similar legislation, and requests your support for 

such request. 

Finally, I would appreciate your response to this letter confirming this understanding. and would 

ask that a copy of our exchange of letters on this matter be included in your committee report and 

in the Congressional Record during floor consideration ofH.R. 2997. 

Sincerely, 

cc: The Honorable Paul Ryan 

The Honorable Peter A. DeFazio 

The Honorable Richard Neal 

Mr. Tom Wickham, Jr .• Parliamentarian 
457 


Insert offset folio 489 here HR296.021

<!lnmmitttt nn (i;rnunpnrtatinn nub 1Jnfrnntructure 

1!t.@t. 1inuse nf i!teprenentatiuen 

lililll!>~uster 

<lll!ulrmun 

Mathew M. ~turges:, ~tat't !JJrector 

The Honorable Kevin Brady 

Chairman 

Committee on Ways and Means 

1102 Longworth House Office Building 

Washington, DC 20515 

Dear Chairman Brady: 

July 11, 2017 

Jllrtcr .i\. l!ldlla3!0 

illunkln!) Slembcr 

Thank you for your letter regarding H.R. 2997, the "21'1 Century AIRR Act", which was ordered 

to be reported from the Committee on Transportation and Infrastructure on June 27, 2017. 

I acknowledge that by foregoing a sequential referral on H.R. 2997, the Committee on Ways and 

Means does not waive any future jurisdictional claim to provisions in this or similar legislation. 

In addition, should a conference on the bill be necessary, I would support your effort to seek 

appointment of an appropriate number of conferees to any House-Senate conference involving 

provisions within this legislation on which the Committee on Ways and Means has a valid 

jurisdictional claim. 

I appreciate your cooperation regarding this legislation and I will include our letters in the report 

and in the Congressional Record during floor consideration ofH.R. 2997. 

Sincerely, 

~~ 

cc: The Honorable Paul D. Ryan 

The Honorable Peter A. DeFazio 

The Honorable Richard Neal 

Bill Shuster 

Chairman 

The Honorable Thomas J. Wickham, Jr., Parliamentarian 
(458) 

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 AcVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00462 Fmt 6604 Sfmt 6604 E:\HR\OC\HR296.XXX HR296
459 

1 U.S. Gov’t Accountability Office, Potential Air Traffic Control Transition Issues 8, Rpt. No. 

GAO–16–386R (2016). 2 Aircraft Owners and Pilots Assoc., et al., ‘‘Statement of 30 General Aviation Groups United 

In Opposition to H.R. 2997’’ (2017). 3Dep’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). 

countability 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

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

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

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 longVerDate Sep 11 2014 11:50 Sep 07, 2017 Jkt 026747 PO 00000 Frm 00463 Fmt 6604 Sfmt 6604 E:\HR\OC\HR296.XXX HR296
460 

4Gov’t Accountability Office, Aviation Finance: Observations on the Effects of Budget Uncertainty on FAA, Rpt. No. GAO–16–198R (2015). 5See, 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.ll(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, § 211 (codifying 49 U.S.C. 90501). 

7 Id. (codifying 49 U.S.C. § 90705). 8 Id. 

9Ltr. from Richard Anderson to The Hon. Bill Shuster and The Hon. Peter A. DeFazio, Feb. 

2, 2016 (on file). 10Gov’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. 

term capital investment decisions that rely on the assurance of stable funding.4

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

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

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 

461 

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 partyline 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. 

Æ