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PART B—AIRPORT DEVELOPMENT AND NOISE

CHAPTER 471—AIRPORT DEVELOPMENT

SUBCHAPTER I—AIRPORT IMPROVEMENT

Sec. 47101. Policies.

47102. Definitions. 47103. National plan of integrated airport systems.

47104. Project grant authority. 47105. Project grant applications.

47106. Project grant application approval conditioned on satisfaction of project

requirements. 47107. Project grant application approval conditioned on assurances about airport

operations. 47108. Project grant agreements. 47109. United States Government’s share of project costs.

47110. Allowable project costs. 47111. Payments under project grant agreements.

47112. Carrying out airport development projects.

47113. Minority and disadvantaged business participation. 47114. Apportionments.

47115. Discretionary fund.

47116. Small airport fund.

47117. Use of apportioned amounts.

47118. Designating current and former military airports.

47119. Terminal development costs.

47120. Grant priority. 47121. Records and audits.

47122. Administrative.

47123. Nondiscrimination.

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

47125. Conveyances of United States Government land.

47126. Criminal penalties for false statements.

47127. Ground transportation demonstration projects.

47128. State block grant program.

47129. Resolution of airport-air carrier disputes concerning airport fees.

47130. Airport safety data collection.

47131. Annual report. [47132. Repealed.]

47133. Restriction on use of revenues.

47134. Pilot program on private ownership of airports.

47135. Innovative financing techniques.

47136. Inherently low-emission airport vehicle pilot program.

47137. Airport security program. 47138. Pilot program for purchase of airport development rights.

47139. Emission credits for air quality projects.

47140. Airport ground support equipment emissions retrofit pilot program.

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

47142. Design-build contracting.

SUBCHAPTER II—SURPLUS PROPERTY FOR PUBLIC AIRPORTS

47151. Authority to transfer an interest in surplus property.

47152. Terms of conveyances.

47153. Waiving and adding terms.

SUBCHAPTER III—AVIATION DEVELOPMENT STREAMLINING

47171. Expedited, coordinated environmental review process.

47172. Air traffic procedures for airport capacity enhancement projects at congested airports.

47173. Airport funding of FAA staff.

47174. Authorization of appropriations.

47175. Definitions.

SUBCHAPTER I—AIRPORT IMPROVEMENT

§ 47101. Policies

(a) GENERAL.—It is the policy of the United States—

(1) that the safe operation of the airport and airway system is the highest aviation priority;

(2) that aviation facilities be constructed and operated to

minimize current and projected noise impact on nearby communities;

(3) to give special emphasis to developing reliever airports;

(4) that appropriate provisions should be made to make

the development and enhancement of cargo hub airports easier;

(5) to encourage the development of intermodal connections on airport property between aeronautical and other

transportation modes and systems to serve air transportation

passengers and cargo efficiently and effectively and promote

economic development;

(6) that airport development projects under this subchapter provide for the protection and enhancement of natural

resources and the quality of the environment of the United

States;

(7) that airport construction and improvement projects

that increase the capacity of facilities to accommodate passenger and cargo traffic be undertaken to the maximum feasible extent so that safety and efficiency increase and delays

decrease;

(8) to ensure that nonaviation usage of the navigable airspace be accommodated but not allowed to decrease the safety

and capacity of the airspace and airport system;

(9) that artificial restrictions on airport capacity—

(A) are not in the public interest;

(B) should be imposed to alleviate air traffic delays

only after other reasonably available and less burdensome

alternatives have been tried; and

(C) should not discriminate unjustly between categories and classes of aircraft;

(10) that special emphasis should be placed on converting

appropriate former military air bases to civil use and identifying and improving additional joint-use facilities;

(11) that the airport improvement program should be administered to encourage projects that employ innovative technology (including integrated in-pavement lighting systems for

runways and taxiways and other runway and taxiway incursion prevention devices), concepts, and approaches that will

promote safety, capacity, and efficiency improvements in the

construction of airports and in the air transportation system

(including the development and use of innovative concrete and
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other materials in the construction of airport facilities to minimize initial laydown costs, minimize time out of service, and

maximize lifecycle durability) and to encourage and solicit innovative technology proposals and activities in the expenditure

of funding pursuant to this subchapter;

(12) that airport fees, rates, and charges must be reason- able and may only be used for purposes not prohibited by this

subchapter; and

(13) that airports should be as self-sustaining as possible

under the circumstances existing at each particular airport and

in establishing new fees, rates, and charges, and generating

revenues from all sources, airport owners and operators should

not seek to create revenue surpluses that exceed the amounts

to be used for airport system purposes and for other purposes

for which airport revenues may be spent under section

47107(b)(1) of this title, including reasonable reserves and

other funds to facilitate financing and cover contingencies.

(b) NATIONAL TRANSPORTATION POLICY.—(1) It is a goal of the

United States to develop a national intermodal transportation system that transports passengers and property in an efficient manner. The future economic direction of the United States depends on

its ability to confront directly the enormous challenges of the global

economy, declining productivity growth, energy vulnerability, air

pollution, and the need to rebuild the infrastructure of the United

States.

(2) United States leadership in the world economy, the expanding wealth of the United States, the competitiveness of the industry of the United States, the standard of living, and the quality of

life are at stake.

(3) A national intermodal transportation system is a coordi- nated, flexible network of diverse but complementary forms of

transportation that transports passengers and property in the most

efficient manner. By reducing transportation costs, these intermodal systems will enhance the ability of the industry of the

United States to compete in the global marketplace.

(4) All forms of transportation, including aviation and other

transportation systems of the future, will be full partners in the effort to reduce energy consumption and air pollution while promoting economic development.

(5) An intermodal transportation system consists of transportation hubs that connect different forms of appropriate transportation and provides users with the most efficient means of

transportation and with access to commercial centers, business locations, population centers, and the vast rural areas of the United

States, as well as providing links to other forms of transportation

and to intercity connections.

(6) Intermodality and flexibility are paramount issues in the

process of developing an integrated system that will obtain the optimum yield of United States resources.

(7) The United States transportation infrastructure must be reshaped to provide the economic underpinnings for the United

States to compete in the 21st century global economy. The United

States can no longer rely on the sheer size of its economy to dominate international economic rivals and must recognize fully that its

economy is no longer a separate entity but is part of the global

marketplace. The future economic prosperity of the United States

depends on its ability to compete in an international marketplace

that is teeming with competitors but in which a full one-quarter of

the economic activity of the United States takes place.

(8) The United States must make a national commitment to re- build its infrastructure through development of a national inter- modal transportation system. The United States must provide the

foundation for its industries to improve productivity and their abil- ity to compete in the global economy with a system that will trans- port passengers and property in an efficient manner.

(c) CAPACITY EXPANSION AND NOISE ABATEMENT.—It is in the

public interest to recognize the effects of airport capacity expansion

projects on aircraft noise. Efforts to increase capacity through any

means can have an impact on surrounding communities. Noncompatible land uses around airports must be reduced and efforts

to mitigate noise must be given a high priority.

(d) CONSISTENCY WITH AIR COMMERCE AND SAFETY POLICIES.— Each airport and airway program should be carried out consist- ently with section 40101(a), (b), (d), and (f) of this title to foster

competition, prevent unfair methods of competition in air transpor- tation, maintain essential air transportation, and prevent unjust

and discriminatory practices, including as the practices may be ap- plied between categories and classes of aircraft.

(e) ADEQUACY OF NAVIGATION AIDS AND AIRPORT FACILITIES.—

This subchapter should be carried out to provide adequate navigation aids and airport facilities for places at which scheduled commercial air service is provided. The facilities provided may

include—

(1) reliever airports; and

(2) heliports designated by the Secretary of Transportation

to relieve congestion at commercial service airports by diverting aircraft passengers from fixed-wing aircraft to helicopter

carriers.

(f) MAXIMUM USE OF SAFETY FACILITIES.—This subchapter

should be carried out consistently with a comprehensive airspace

system plan, giving highest priority to commercial service airports,

to maximize the use of safety facilities, including installing, oper- ating, and maintaining, to the extent possible with available money

and considering other safety needs—

(1) electronic or visual vertical guidance on each runway;

(2) grooving or friction treatment of each primary and secondary runway;

(3) distance-to-go signs for each primary and secondary

runway;

(4) a precision approach system, a vertical visual guidance

system, and a full approach light system for each primary run-
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way;

(5) a nonprecision instrument approach for each secondary

runway;

(6) runway end identifier lights on each runway that does

not have an approach light system;

(7) a surface movement radar system at each category III

airport;

(8) a taxiway lighting and sign system;

(9) runway edge lighting and marking;

(10) radar approach coverage for each airport terminal

area; and

(11) runway and taxiway incursion prevention devices, in- cluding integrated in-pavement lighting systems for runways

and taxiways. (g) INTERMODAL PLANNING.—To carry out the policy of subsection (a)(5) of this section, the Secretary of Transportation shall

take each of the following actions:

(1) COORDINATION IN DEVELOPMENT OF AIRPORT PLANS AND

PROGRAMS.—Cooperate with State and local officials in devel- oping airport plans and programs that are based on overall

transportation needs. The airport plans and programs shall be

developed in coordination with other transportation planning

and considering comprehensive long-range land-use plans and

overall social, economic, environmental, system performance, and energy conservation objectives. The process of developing

airport plans and programs shall be continuing, cooperative, and comprehensive to the degree appropriate to the complexity

of the transportation problems.

(2) GOALS FOR AIRPORT MASTER AND SYSTEM PLANS.—Encourage airport sponsors and State and local officials to develop airport master plans and airport system plans that— (A) foster effective coordination between aviation planning and metropolitan planning;

(B) include an evaluation of aviation needs within the

context of multimodal planning; and

(C) are integrated with metropolitan plans to ensure

that airport development proposals include adequate consideration of land use and ground transportation access.

(3) REPRESENTATION OF AIRPORT OPERATORS ON MPO’S.—

Encourage metropolitan planning organizations, particularly in

areas with populations greater than 200,000, to establish membership positions for airport operators.

(h) CONSULTATION.—To carry out the policy of subsection (a)(6)

of this section, the Secretary of Transportation shall consult with

the Secretary of the Interior and the Administrator of the Environmental Protection Agency about any project included in a project

grant application involving the location of an airport or runway, or

a major runway extension, that may have a significant effect on—

(1) natural resources, including fish and wildlife;

(2) natural, scenic, and recreation assets;

(3) water and air quality; or

(4) another factor affecting the environment.

§ 47102. Definitions

In this subchapter—

(1) ‘‘air carrier airport’’ means a public airport regularly

served by—

(A) an air carrier certificated by the Secretary of

Transportation under section 41102 of this title (except a

charter air carrier); or

(B) at least one air carrier—

(i) operating under an exemption from section

41101(a)(1) of this title that the Secretary grants; and

(ii) having at least 2,500 passenger boardings at

the airport during the prior calendar year.

(2) ‘‘airport’’—

(A) means—

(i) an area of land or water used or intended to be

used for the landing and taking off of aircraft;

(ii) an appurtenant area used or intended to be

used for airport buildings or other airport facilities or

rights of way; and

(iii) airport buildings and facilities located in any

of those areas; and

(B) includes a heliport. (3) ‘‘airport development’’ means the following activities, if

undertaken by the sponsor, owner, or operator of a public-use

airport:

(A) constructing, repairing, or improving a public-use

airport, including—

(i) removing, lowering, relocating, marking, and

lighting an airport hazard; and

(ii) preparing a plan or specification, including

carrying out a field investigation.

(B) acquiring for, or installing at, a public-use

airport—

(i) a navigation aid or another aid (including a

precision approach system) used by aircraft for landing at or taking off from the airport, including preparing the site as required by the acquisition or installation;

(ii) safety or security equipment, including explosive detection devices, universal access systems, and

emergency call boxes, the Secretary requires by regulation for, or approves as contributing significantly to,

the safety or security of individuals and property at

the airport and integrated in-pavement lighting systems for runways and taxiways and other runway and

taxiway incursion prevention devices;

(iii) equipment to remove snow, to measure runway surface friction, or for aviation-related weather

reporting, including closed circuit weather surveillance
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equipment if the airport is located in Alaska;

(iv) firefighting and rescue equipment at an air- port that serves scheduled passenger operations of air

carrier aircraft designed for more than 20 passenger

seats;

(v) aircraft deicing equipment and structures (except aircraft deicing fluids and storage facilities for the

equipment and fluids);

(vi) interactive training systems;

(vii) windshear detection equipment that is certified by the Administrator of the Federal Aviation Administration;

(viii) stainless steel adjustable lighting extensions

approved by the Administrator;

(ix) engineered materials arresting systems as described in the Advisory Circular No. 150/5220–22 published by the Federal Aviation Administration on August 21, 1998, including any revision to the circular;

and

(x) replacement of baggage conveyor systems, and

reconfiguration of terminal baggage areas, that the

Secretary determines are necessary to install bulk explosive detection devices; except that such activities

shall be eligible for funding under this subchapter

only using amounts apportioned under section 47114.

(C) acquiring an interest in land or airspace, including

land for future airport development, that is needed—

(i) to carry out airport development described in

subclause (A) or (B) of this clause; or

(ii) to remove or mitigate an existing airport hazard or prevent or limit the creation of a new airport

hazard.

(D) acquiring land for, or constructing, a burn area

training structure on or off the airport to provide live fire

drill training for aircraft rescue and firefighting personnel

required to receive the training under regulations the Secretary prescribes, including basic equipment and minimum

structures to support the training under standards the Administrator of the Federal Aviation Administration prescribes.

(E) relocating after December 31, 1991, an air traffic

control tower and any navigational aid (including radar) if

the relocation is necessary to carry out a project approved

by the Secretary under this subchapter or under section

40117.

(F) constructing, reconstructing, repairing, or improving an airport, or purchasing capital equipment for an airport, if necessary for compliance with the responsibilities

of the operator or owner of the airport under the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et

seq.), the Clean Air Act (42 U.S.C. 7401 et seq.), and the

Federal Water Pollution Control Act (33 U.S.C. 1251 et

seq.), except constructing or purchasing capital equipment

that would benefit primarily a revenue-producing area of

the airport used by a nonaeronautical business.

(G) acquiring land for, or work necessary to construct,

a pad suitable for deicing aircraft before takeoff at a commercial service airport, including constructing or reconstructing paved areas, drainage collection structures, treat- ment and discharge systems, appropriate lighting, paved

access for deicing vehicles and aircraft, but not including

acquiring aircraft deicing fluids or constructing or recon- structing 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 equip- ment to be owned by an airport, for the purpose of transferring passengers, cargo, or baggage between the aero- nautical and ground transportation modes on airport prop- erty.

(J) constructing an air traffic control tower or acquir- ing 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 fa- cilities to provide low-emission fuel systems, gate elec- trification, and other related air quality improvements at

a commercial service airport if the airport is located in an

air quality nonattainment or maintenance area (as defined

in sections 171(2) and 175A of the Clean Air Act (42 U.S.C. 7501(2); 7505a) and if such project will result in an airport

receiving appropriate emission credits, as described in sec- tion 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 mainte- nance 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.

(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 regu-
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lations the Secretary prescribes and includes integrated airport

system planning. (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) ‘‘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.

(9) ‘‘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.

(10) ‘‘large hub airport’’ means a commercial service airport that has at least 1.0 percent of the passenger boardings.

(11) ‘‘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.

(12) ‘‘medium hub airport’’ means a commercial service air- port that has at least 0.25 percent but less than 1.0 percent

of the passenger boardings.

(13) ‘‘nonhub airport’’ means a commercial service airport

that has less than 0.05 percent of the passenger boardings.

(14) ‘‘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.

(15) ‘‘primary airport’’ means a commercial service airport

the Secretary determines to have more than 10,000 passenger

boardings each year.

(16) ‘‘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.

(17) ‘‘project cost’’ means a cost involved in carrying out a

project.

(18) ‘‘project grant’’ means a grant of money the Secretary

makes to a sponsor to carry out at least one project.

(19) ‘‘public agency’’ means—

(A) a State or political subdivision of a State;

(B) a tax-supported organization; or

(C) an Indian tribe or pueblo.

(20) ‘‘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.

(21) ‘‘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.

(22) ‘‘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.

(23) ‘‘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.

(24) ‘‘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 sub- mits to the Secretary under this subchapter an application

for financial assistance for the airport.

(25) ‘‘State’’ means a State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American
186

Samoa, the Northern Mariana Islands, the Trust Territory of

the Pacific Islands, and Guam.

§ 47103. National plan of integrated airport systems

(a) GENERAL REQUIREMENTS AND CONSIDERATIONS.—The Secretary of Transportation shall maintain the plan for developing

public-use airports in the United States, named ‘‘the national plan

of integrated airport systems’’. The plan shall include the kind and

estimated cost of eligible airport development the Secretary of

Transportation considers necessary to provide a safe, efficient, and

integrated system of public-use airports adequate to anticipate and

meet the needs of civil aeronautics, to meet the national defense requirements of the Secretary of Defense, and to meet identified

needs of the United States Postal Service. Airport development included in the plan may not be limited to meeting the needs of any

particular classes or categories of public-use airports. In maintaining the plan, the Secretary of Transportation shall consider the

needs of each segment of civil aviation and the relationship of each

airport to—

(1) the rest of the transportation system in the particular

area;

(2) forecasted technological developments in aeronautics;

and

(3) forecasted developments in other modes of intercity

transportation.

(b) SPECIFIC REQUIREMENTS.—In maintaining the plan, the

Secretary of Transportation shall—

(1) to the extent possible and as appropriate, consult with

departments, agencies, and instrumentalities of the United

States Government, with public agencies, and with the aviation community;

(2) consider tall structures that reduce safety or airport capacity; and

(3) make every reasonable effort to address the needs of

air cargo operations, Short Takeoff and Landing/Very Short

Takeoff and Landing aircraft operations, and rotary wing aircraft operations.

(c) AVAILABILITY OF DOMESTIC MILITARY AIRPORTS AND AIRPORT FACILITIES.—To the extent possible, the Secretary of Defense

shall make domestic military airports and airport facilities available for civil use. In advising the Secretary of Transportation under

subsection (a) of this section, the Secretary of Defense shall indicate the extent to which domestic military airports and airport facilities are available for civil use.

(d) PUBLICATION.—The Secretary of Transportation shall pub- lish the status of the plan every 2 years.

§ 47104. Project grant authority

(a) GENERAL AUTHORITY.—To maintain a safe and efficient nationwide system of public-use airports that meets the present and

future needs of civil aeronautics, the Secretary of Transportation

may make project grants under this subchapter from the Airport

and Airway Trust Fund.

(b) INCURRING OBLIGATIONS.—The Secretary may incur obligations to make grants from amounts made available under section

48103 of this title as soon as the amounts are apportioned under

section 47114(c) and (d)(2) of this title.

(c) EXPIRATION OF AUTHORITY.—After September 30, 2007, 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.

§ 47105. Project grant applications

(a) SUBMISSION AND CONSULTATION.—(1) An application for a

project grant under this subchapter may be submitted to the Secretary of Transportation by—

(A) a sponsor; or

(B) a State, as the only sponsor, for an airport development project benefitting 1 or more airports in the State or for

airport planning for projects for 1 or more airports in the State

if—

(i) the sponsor of each airport gives written consent

that the State be the applicant;

(ii) the Secretary is satisfied there is administrative

merit and aeronautical benefit in the State being the sponsor; and

(iii) an acceptable agreement exists that ensures that

the State will comply with appropriate grant conditions

and other assurances the Secretary requires.

(2) Before deciding to undertake an airport development

project at an airport under this subchapter, a sponsor shall consult

with the airport users that will be affected by the project. (3) This subsection does not authorize a public agency that is

subject to the laws of a State to apply for a project grant in violation of a law of the State.

(b) CONTENTS AND FORM.—An application for a project grant

under this subchapter—

(1) shall describe the project proposed to be undertaken;

(2) may propose a project only for a public-use airport included in the current national plan of integrated airport systems;

(3) may propose airport development only if the development complies with standards the Secretary prescribes or ap-
187

proves, including standards for site location, airport layout,

site preparation, paving, lighting, and safety of approaches;

and

(4) shall be in the form and contain other information the

Secretary prescribes.

(c) STATE STANDARDS FOR AIRPORT DEVELOPMENT.—The Secretary may approve standards (except standards for safety of approaches) that a State prescribes for airport development at nonprimary public-use airports in the State. On approval under this subsection, a State’s standards apply to the nonprimary public-use airports in the State instead of the comparable standards prescribed

by the Secretary under subsection (b)(3) of this section. The Secretary, or the State with the approval of the Secretary, may revise

standards approved under this subsection.

(d) CERTIFICATION OF COMPLIANCE.—The Secretary may require a sponsor to certify that the sponsor will comply with this

subchapter in carrying out the project. The Secretary may rescind

the acceptance of a certification at any time. This subsection does

not affect an obligation or responsibility of the Secretary under another law of the United States.

(e) PREVENTIVE MAINTENANCE.—After January 1, 1995, the

Secretary may approve an application under this subchapter for

the replacement or reconstruction of pavement at an airport only

if the sponsor has provided such assurances or certifications as the

Secretary may determine appropriate that such airport has implemented an effective airport pavement maintenance-management

program. The Secretary may require such reports on pavement condition and pavement management programs as the Secretary deter- mines may be useful.

(f) NOTIFICATION.—The sponsor of an airport for which an

amount is apportioned under section 47114(c) of this title shall notify the Secretary of the fiscal year in which the sponsor intends

to submit a project grant application for the apportioned amount.

The notification shall be given by the time and contain the information the Secretary prescribes.

§ 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 sub- chapter;

(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; and

(5) the sponsor has authority to carry out the project as

proposed.

(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 air- craft, or that good title will be acquired;

(2) the interests of the community in or near which the

project may be located have been given fair consideration; and

(3) the application provides touchdown zone and centerline

runway lighting, high intensity runway lighting, or land necessary for installing approach light systems that the Secretary, considering the category of the airport and the kind and volume of traffic using it, decides is necessary for safe and efficient use of the airport by aircraft.

(c) ENVIRONMENTAL REQUIREMENTS.—(1) The Secretary may

approve an application under this subchapter for an airport development project involving the location of an airport or runway or a

major runway extension—

(A) only if the sponsor certifies to the Secretary that—

(i) an opportunity for a public hearing was given to

consider the economic, social, and environmental effects of

the location and the location’s consistency with the objectives of any planning that the community has carried out;

(ii) the airport management board has voting representation from the communities in which the project is

located or has advised the communities that they have the

right to petition the Secretary about a proposed project;

and

(iii) with respect to an airport development project involving the location of an airport, runway, or major runway extension at a medium or large hub airport, the airport sponsor has made available to and has provided upon

request to the metropolitan planning organization in the

area in which the airport is located, if any, a copy of the

proposed amendment to the airport layout plan to depict

the project and a copy of any airport master plan in which

the project is described or depicted; and

(B) if the application is found to have a significant adverse

effect on natural resources, including fish and wildlife, natural,

scenic, and recreation assets, water and air quality, or another

factor affecting the environment, only after finding that no possible and prudent alternative to the project exists and that

every reasonable step has been taken to minimize the adverse

effect.
188

(2) The Secretary may approve an application under this sub- chapter 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 Sec- retary a copy of the transcript of any hearing held under paragraph

1)(A) of this subsection.

(4) The Secretary may make a finding under paragraph (1)(B)

of this subsection only after completely reviewing the matter. The

review and finding must be a matter of public record.

(d) WITHHOLDING APPROVAL.—(1) The Secretary may withhold

approval of an application under this subchapter for amounts apportioned under section 47114(c) and (e) of this title for violating

an assurance or requirement of this subchapter only if—

(A) the Secretary provides the sponsor an opportunity for

a hearing; and

(B) not later than 180 days after the later of the date of

the application or the date the Secretary discovers the noncompliance, the Secretary finds that a violation has occurred.

(2) The 180-day period may be extended by—

(A) agreement between the Secretary and the sponsor; or

(B) the hearing officer if the officer decides an extension is

necessary because the sponsor did not follow the schedule the

officer established.

(3) A person adversely affected by an order of the Secretary

withholding approval may obtain review of the order by filing a petition in the United States Court of Appeals for the District of Columbia Circuit or in the court of appeals of the United States for

the circuit in which the project is located. The action must be

brought not later than 60 days after the order is served on the petitioner.

(e) REPORTS RELATING TO CONSTRUCTION OF CERTAIN NEW

HUB AIRPORTS.—At least 90 days prior to the approval under this

subchapter of a project grant application for construction of a new

hub airport that is expected to have 0.25 percent or more of the

total annual enplanements in the United States, the Secretary

shall submit to Congress a report analyzing the anticipated impact

of such proposed new airport on—

(1) the fees charged to air carriers (including landing fees),

and other costs that will be incurred by air carriers, for using

the proposed airport;

(2) air transportation that will be provided in the geo- graphic 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 fee 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, patterns of air service, gate-assignment

policy, financial constraints, airport controls over air- and

ground-side capacity, whether the airport intends to build or

acquire gates that would be used as common facilities, and airfare levels (as compiled by the Department of Transportation)

compared to other large airports.

(3) 1 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) 1 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.

1 Section 123(a) of P.L. 107–71 (115 Stat. 630) provides:

(a) COMPETITION PLAN.—Section 47106(f) is amended—

(1) by redesignating paragraph (3) as paragraph (4); and

(2) by inserting after paragraph (2) the following:

‘‘(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.’’.

The amendments were executed in section 47106(f) of title 49, United States Code

in order to reflect the probable intent of Congress.
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§ 47107. Project grant application approval conditioned on

assurances about airport operations

(a) GENERAL WRITTEN ASSURANCES.—The Secretary of Transportation may approve a project grant application under this subchapter for an airport development project only if the Secretary receives written assurances, satisfactory to the Secretary, that—

(1) the airport will be available for public use on reasonable conditions and without unjust discrimination;

(2) air carriers making similar use of the airport will be

subject to substantially comparable charges—

(A) for facilities directly and substantially related to

providing air transportation; and

(B) regulations and conditions, except for

differences based on reasonable classifications, such as

between—

(i) tenants and nontenants; and

(ii) signatory and nonsignatory carriers;

(3) the airport operator will not withhold unreasonably the

classification or status of tenant or signatory from an air car- rier that assumes obligations substantially similar to those al- ready imposed on air carriers of that classification or status;

(4) a person providing, or intending to provide, aero- nautical 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, burden- some, or impractical for more than one fixed-base operator

to provide the services; and

(B) allowing more than one fixed-base operator to pro- vide 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 min- imum flight altitudes) will be cleared and protected by mitigating existing, and preventing future, airport hazards;

(10) appropriate action, including the adoption of zoning

laws, has been or will be taken to the extent reasonable to restrict the use of land next to or near the airport to uses that

are compatible with normal airport operations;

(11) each of the airport’s facilities developed with financial

assistance from the United States Government and each of the

airport’s facilities usable for the landing and taking off of aircraft always will be available without charge for use by Government aircraft in common with other aircraft, except that if

the use is substantial, the Government may be charged a reasonable share, proportionate to the use, of the cost of operating

and maintaining the facility used;

(12) the airport owner or operator will provide, without

charge to the Government, property interests of the sponsor in

land or water areas or buildings that the Secretary decides are

desirable for, and that will be used for, constructing at Government expense, facilities for carrying out activities related to air

traffic control or navigation;

(13) the airport owner or operator will maintain a schedule

of charges for use of facilities and services at the airport—

(A) that will make the airport as self-sustaining as

possible under the circumstances existing at the airport,

including volume of traffic and economy of collection; and

(B) without including in the rate base used for the

charges the Government’s share of costs for any project for

which a grant is made under this subchapter or was made

under the Federal Airport Act or the Airport and Airway

Development Act of 1970;

(14) the project accounts and records will be kept using a

standard system of accounting that the Secretary, after consulting with appropriate public agencies, prescribes;

(15) the airport owner or operator will submit any annual

or special airport financial and operations reports to the Sec- retary 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,
190

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;

(17) each contract and subcontract for program management, construction management, planning studies, feasibility

studies, architectural services, preliminary engineering, design,

engineering, surveying, mapping, and related services will be

awarded in the same way that a contract for architectural and

engineering services is negotiated under chapter 11 of title 40

or an equivalent qualifications-based requirement prescribed

for or by the sponsor;

(18) the airport and each airport record will be available

for inspection by the Secretary on reasonable request, and a report of the airport budget will be available to the public at reasonable times and places;

(19) the airport owner or operator will submit to the Sec- retary and make available to the public an annual report listing in detail—

(A) all amounts paid by the airport to any other unit

of government and the purposes for which each such payment was made; and

(B) all services and property provided to other units of

government and the amount of compensation received for

provision of each such service and property;

(20) the airport owner or operator will permit, to the maximum extent practicable, intercity buses or other modes of

transportation to have access to the airport, but the sponsor

does not have any obligation under this paragraph, or because

of it, to fund special facilities for intercity bus service or for

other modes of transportation; and

(21) if the airport owner or operator and a person who

owns an aircraft agree that a hangar is to be constructed at

the airport for the aircraft at the aircraft owner’s expense, the

airport owner or operator will grant to the aircraft owner for

the hangar a long-term lease that is subject to such terms and

conditions on the hangar as the airport owner or operator may

impose.

(b) WRITTEN ASSURANCES ON USE OF REVENUE.—(1) The Sec- retary of Transportation may approve a project grant application

under this subchapter for an airport development project only if the

Secretary receives written assurances, satisfactory to the Secretary, that local taxes on aviation fuel (except taxes in effect on December

30, 1987) and the revenues generated by a public airport will be

expended for the capital or operating costs of—

(A) the airport;

(B) the local airport system; or

(C) other local facilities owned or operated by the airport

owner or operator and directly and substantially related to the

air transportation of passengers or property.

(2) Paragraph (1) of this subsection does not apply if a provision enacted not later than September 2, 1982, in a law controlling

financing by the airport owner or operator, or a covenant or assurance in a debt obligation issued not later than September 2, 1982,

by the owner or operator, provides that the revenues, including

local taxes on aviation fuel at public airports, from any of the facilities of the owner or operator, including the airport, be used to support not only the airport but also the general debt obligations or

other facilities of the owner or operator.

(3) This subsection does not prevent the use of a State tax on

aviation fuel to support a State aviation program or the use of airport revenue on or off the airport for a noise mitigation purpose.

(c) WRITTEN ASSURANCES ON ACQUIRING LAND.—(1) In this

subsection, land is needed for an airport purpose (except a noise

compatibility purpose) if—

(A)(i) the land may be needed for an aeronautical purpose

(including runway protection zone) or serves as noise buffer

land; and

(ii) revenue from interim uses of the land contributes to

the financial self-sufficiency of the airport; and

(B) for land purchased with a grant the owner or operator

received not later than December 30, 1987, the Secretary of

Transportation or the department, agency, or instrumentality

of the Government that made the grant was notified by the

owner or operator of the use of the land and did not object to

the use and the land is still being used for that purpose.

(2) The Secretary of Transportation may approve an applica- tion 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 compat- ibility purpose—

(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 re- serving 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 paid to the Secretary for deposit in the Airport and Airway Trust Fund established

under section 9502 of the Internal Revenue Code of 1986
191

(26 U.S.C. 9502) or, as the Secretary prescribes, reinvested

in an approved noise compatibility project, including the

purchase of nonresidential buildings or property in the vicinity of residential buildings or property previously purchased by the airport as part of a noise compatibility program; 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, on application to

the Secretary, in another eligible airport development

project the Secretary approves under this subchapter or

paid to the Secretary for deposit in the Fund if another eligible project does not exist.

(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.

(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 pri- vately owned public-use airport only if the Secretary receives ap- propriate assurances that the airport will continue to function as

a public-use airport during the economic life (that must be at least

10 years) of any facility at the airport that was developed with

Government financial assistance under this subchapter. (e) WRITTEN ASSURANCES OF OPPORTUNITIES FOR SMALL BUSI- NESS CONCERNS.—(1) The Secretary of Transportation may approve

a project grant application under this subchapter for an airport de- velopment 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 prac- ticable, that at least 10 percent of all businesses at the airport sell- ing consumer products or providing consumer services to the public

are small business concerns (as defined by regulations of the Sec- retary) owned and controlled by a socially and economically dis- advantaged individual (as defined in section 47113(a) of this title)

or qualified HUBZone small business concerns (as defined in sec- tion 3(p) of the Small Business Act).

(2) An airport owner or operator may meet the percentage goal

of paragraph (1) of this subsection by including any business operated through a management contract or subcontract. The dollar

amount of a management contract or subcontract with a disadvantaged business enterprise shall be added to the total participation

by disadvantaged business enterprises in airport concessions and to

the base from which the airport’s percentage goal is calculated. The

dollar amount of a management contract or subcontract with a

non-disadvantaged business enterprise and the gross revenue of

business activities to which the management contract or subcontract pertains may not be added to this base.

(3) Except as provided in paragraph (4) of this subsection, an

airport owner or operator may meet the percentage goal of paragraph (1) of this subsection by including the purchase from disadvantaged business enterprises of goods and services used in businesses conducted at the airport, but the owner or operator and the

businesses conducted at the airport shall make good faith efforts to

explore all available options to achieve, to the maximum extent

practicable, compliance with the goal through direct ownership arrangements, including joint ventures and franchises.

(4)(A) In complying with paragraph (1) of this subsection, an

airport owner or operator shall include the revenues of car rental

firms at the airport in the base from which the percentage goal in

paragraph (1) is calculated.

(B) An airport owner or operator may require a car rental firm

to meet a requirement under paragraph (1) of this subsection by

purchasing or leasing goods or services from a disadvantaged business enterprise. If an owner or operator requires such a purchase

or lease, a car rental firm shall be permitted to meet the requirement by including purchases or leases of vehicles from any vendor

that qualifies as a small business concern owned and controlled by

a socially and economically disadvantaged individual or as a qualified HUBZone small business concern (as defined in section 3(p) of

the Small Business Act).

(C) This subsection does not require a car rental firm to change

its corporate structure to provide for direct ownership arrangements to meet the requirements of this subsection.

(5) This subsection does not preempt—

(A) a State or local law, regulation, or policy enacted by

the governing body of an airport owner or operator; or

(B) the authority of a State or local government or airport

owner or operator to adopt or enforce a law, regulation, or pol- icy 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.
192

(8) Not later than April 29, 1993, the Secretary of Transpor- tation shall prescribe regulations to carry out this subsection. (f) AVAILABILITY OF AMOUNTS.—An amount deposited in the

Airport and Airway Trust Fund under—

(1) subsection (c)(2)(A)(iii) of this section is available to the

Secretary of Transportation to make a grant for airport devel- opment 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 applica- tion for a project grant only if the Secretary is satisfied that the

requirements prescribed under paragraph (1)(A) of this subsection

have been or will be met.

(h) MODIFYING ASSURANCES AND REQUIRING COMPLIANCE WITH

ADDITIONAL ASSURANCES.—

(1) IN GENERAL.—Subject to paragraph (2), before modifying an assurance required of a person receiving a grant

under this subchapter and in effect after December 29, 1987,

or to require compliance with an additional assurance from the

person, the Secretary of Transportation must—

(A) publish notice of the proposed modification in the

Federal Register; and

(B) provide an opportunity for comment on the proposal. (2) PUBLIC NOTICE BEFORE WAIVER OF AERONAUTICAL LAND- USE ASSURANCE.—Before modifying an assurance under sub- section (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 enter- prise’’ have the same meanings given those terms in section

555(b)(8) of the Tariff Act of 1930 (19 U.S.C. 1555(b)(8)).

(B) ‘‘highway’’ and ‘‘Federal-aid system’’ have the same

meanings given those terms in section 101(a) of title 23.

(2) Notwithstanding subsection (b)(1) of this section, Hawaii

may use, for a project for construction or reconstruction of a highway on a Federal-aid system that is not more than 10 miles by

road from an airport and that will facilitate access to the airport, revenue from the sales at off-airport locations in Hawaii of dutyfree merchandise under a contract between Hawaii and a duty-free

sales enterprise. However, the revenue resulting during a Hawai- ian 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 deter- mined 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 es- tablished under section 47115. (7)(A) This subsection applies only to revenue from sales re- ferred to in paragraph (2) of this subsection from May 5, 1990,
193

through December 30, 1994, and to amounts in the Airport Rev- enue 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 sub- section from May 5, 1990, through December 30, 1994, may be used

under paragraph (2) in any Hawaiian fiscal year, including a Ha- waiian fiscal year beginning after December 31, 1994.

(k) ANNUAL SUMMARIES OF FINANCIAL REPORTS.—The Secretary shall provide to the Committee on Commerce, Science, and

Transportation of the Senate and the Committee on Transportation

and Infrastructure of the House of Representatives an annual summary of the reports submitted to the Secretary under subsection

(a)(19) of this section and under section 111(b) of the Federal Aviation Administration Authorization Act of 1994.

(l) POLICIES AND PROCEDURES TO ENSURE ENFORCEMENT

AGAINST ILLEGAL DIVERSION OF AIRPORT REVENUE.—

(1) IN GENERAL.—Not later than 90 days after August 23,

1994, the Secretary of Transportation shall establish policies

and procedures that will assure the prompt and effective enforcement of subsections (a)(13) and (b) of this section and

grant assurances made under such subsections. Such policies

and procedures shall recognize the exemption provision in subsection (b)(2) of this section and shall respond to the information contained in the reports of the Inspector General of the

Department of Transportation on airport revenue diversion

and such other relevant information as the Secretary may by

law consider.

(2) REVENUE DIVERSION.—Policies and procedures to be established pursuant to paragraph (1) of this subsection shall

prohibit, at a minimum, the diversion of airport revenues (except as authorized under subsection (b) of this section)

through—

(A) direct payments or indirect payments, other than

payments reflecting the value of services and facilities provided to the airport;

(B) use of airport revenues for general economic development, marketing, and promotional activities unrelated to

airports or airport systems;

(C) payments in lieu of taxes or other assessments

that exceed the value of services provided; or

(D) payments to compensate nonsponsoring governmental bodies for lost tax revenues exceeding stated tax

rates.

(3) EFFORTS TO BE SELF-SUSTAINING.—With respect to subsection (a)(13) of this section, policies and procedures to be established pursuant to paragraph (1) of this subsection shall

take into account, at a minimum, whether owners and opera- tors 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 (n)(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 ex- pense is incurred; and

(B) any amount of airport funds that are used to make

a payment or reimbursement as described in subparagraph

(A) after the date specified in that subparagraph shall be

considered to be an illegal diversion of airport revenues

that is subject to subsection (n).

(m) 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).

(n) 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 ille- gal diversion of airport revenues (as determined under subsections (b) and (l) and section 47133), the Secretary, acting

through the Administrator, shall—

(A) review the audit or report;

(B) perform appropriate factfinding; and
194

(C) conduct a hearing and render a final determina- tion concerning whether the illegal diversion of airport rev- enues 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 air- port involved under this paragraph.

(3) ADMINISTRATIVE ACTION.—The Secretary may withhold

any amount from funds that would otherwise be made avail- able to the sponsor, including funds that would otherwise be

made available to a State, municipality, or political subdivision

thereof (including any multimodal transportation agency or

transit authority of which the sponsor is a member entity) as

part of an apportionment or grant made available pursuant to

this title, if the sponsor—

(A) receives notification that the sponsor is required to

reimburse an airport; and

(B) has had an opportunity to reimburse the airport, but has failed to do so.

(4) CIVIL ACTION.—If a sponsor fails to pay an amount

specified under paragraph (3) during the 180-day period beginning on the date of notification and the Secretary is unable to

withhold a sufficient amount under paragraph (3), the Secretary, acting through the Administrator, may initiate a civil

action under which the sponsor shall be liable for civil penalty

in an amount equal to the illegal diversion in question plus interest (as determined under subsection (o)).

(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 (o)).

(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 (l)) or

section 47133 after the date that is 6 years after the date on

which the diversion occurred.

(o) 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 (n) in an

amount equal to the average investment interest rate for tax

and loan accounts of the Department of the Treasury (as deter- mined by the Secretary of the Treasury) for the applicable cal- endar 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 pre- ceding calendar quarter, rounded to the nearest whole percent- age point, the Secretary of the Treasury may adjust the inter- est rate charged under this subsection in a manner that re- flects that change.

(3) ACCRUAL.—Interest assessed under subsection (n) shall

accrue from the date of the actual illegal diversion of revenues

referred to in subsection (n).

(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. (p) PAYMENT BY AIRPORT TO SPONSOR.—If, in the course of an

audit or other review conducted under this section, the Secretary

or the Administrator determines that an airport owes a sponsor

funds as a result of activities conducted by the sponsor or expendi- tures 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 (o), except that the

amount of any interest assessed under this subsection shall be de- termined from the date on which the Secretary or the Adminis- trator makes that determination.

(q) Notwithstanding any written assurances prescribed in sub- sections (a) through (p), 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 1 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 1 does not contribute to significant passenger 1 delays

as defined by DOT/FAA in the ‘‘Airport Capacity Benchmark

Report 2001’’.
195

(r) An airport that meets the conditions of subsections (q)(1)

through (3) is not subject to section 47524 of title 49 with respect

to a prohibition on all scheduled passenger service.

(s) COMPETITION DISCLOSURE REQUIREMENT.—

(1) IN GENERAL.—The Secretary of Transportation may approve an application under this subchapter for an airport development project grant for a large hub airport or a medium

hub airport only if the Secretary receives assurances that the

airport sponsor will provide the information required by paragraph (2) at such time and in such form as the Secretary may

require.

(2) COMPETITIVE ACCESS.—On February 1 and August 1 of

each year, an airport that during the previous 6-month period

has been unable to accommodate one or more requests by an

air carrier for access to gates or other facilities at that airport

in order to provide service to the airport or to expand service

at the airport shall transmit a report to the Secretary that—

(A) describes the requests;

(B) provides an explanation as to why the requests

could not be accommodated; and

(C) provides a time frame within which, if any, the airport will be able to accommodate the requests.

(3) SUNSET PROVISION.—This subsection shall cease to be

effective beginning October 1, 2008.

1 Section 2702 of division I of Public Law 108–11 (117 Stat. 600) provides as follows:

SEC. 2702. Section 321 of division I of Public Law 108–7 is amended by—

(1) inserting ‘‘or underneath’’ in subsection (q)(2) before ‘‘the Class B airspace’’;

(2) striking ‘‘has sufficient capacity and’’ in subsection (q)(3) after ‘‘Title 49’’; and

(3) inserting ‘‘passenger’’ in subsection (q)(3) before ‘‘delays’’.

Section 321 of division I of Public Law 108–7 (117 Stat. 411) does not have a subsection (q).

It did, however, provide for an amendment to insert new subsections (q) and (r) to section 47107

of this title. The amendatory instructions made by Public Law 108–11 probably should been to

paragraphs (2) and (3) of section 47107(q) of title 49, United States Code (as added by section 321(a) of Public Law 108–7), but were executed to reflect the probable intent of Congress. Also,

the word ‘‘Title 49’’ in the amendment instructions contain in paragraph (2) of section 2702 (see

above) probably should have been ‘‘title 49’’.

§ 47108. Project grant agreements

(a) OFFER AND ACCEPTANCE.—On approving a project grant ap- plication under this subchapter, the Secretary of Transportation

shall offer the sponsor a grant to pay the United States Government’s share of the project costs allowable under section 47110 of

this title. The Secretary may impose terms on the offer that the

Secretary considers necessary to carry out this subchapter and regulations prescribed under this subchapter. An offer shall state the

obligations to be assumed by the sponsor and the maximum

amount the Government will pay for the project from the amounts

authorized under chapter 481 of this title (except sections 48102(e),

48106, 48107, and 48110). At the request of the sponsor, an offer

of a grant for a project that will not be completed in one fiscal year

shall provide for the obligation of amounts apportioned or to be apportioned to a sponsor under section 47114(c) or 47114(d)(3)(A) of

this title for the fiscal years necessary to pay the Government’s

share of the cost of the project. An offer that is accepted in writing

by the sponsor is an agreement binding on the Government and the

sponsor. The Government may pay or be obligated to pay a project

cost only after a grant agreement for the project is signed.

(b) INCREASING GOVERNMENT’S SHARE UNDER THIS SUBCHAPTER OR CHAPTER 475.—(1) When an offer has been accepted

in writing, the amount stated in the offer as the maximum amount

the Government will pay may be increased only as provided in

paragraphs (2) and (3) of this subsection.

(2)(A) For a project receiving assistance under a grant ap- proved under the Airport and Airway Improvement Act of 1982 before October 1, 1987, the amount may be increased by not more

than—

(i) 10 percent for an airport development project, except a

project for acquiring an interest in land; and

(ii) 50 percent of the total increase in allowable project

costs attributable to acquiring an interest in land, based on

current creditable appraisals.

(B) An increase under subparagraph (A) of this paragraph may

be paid only from amounts the Government recovers from other

grants made under this subchapter.

(3) For a project receiving assistance under a grant approved

under the Act, this subchapter, or chapter 475 of this title after

September 30, 1987, the amount may be increased—

(A) for an airport development project, by not more than

15 percent; and

(B) for a grant after September 30, 1992, to acquire an interest in land for an airport (except a primary airport), by not

more than the greater of the following, based on current creditable appraisals or a court award in a condemnation proceeding:

(i) 15 percent; or

(ii) 25 percent of the total increase in allowable project
196

costs attributable to acquiring an interest in land.

(c) INCREASING GOVERNMENT’S SHARE UNDER AIRPORT AND

AIRWAY DEVELOPMENT ACT OF 1970.—For a project receiving assistance under a grant made under the Airport and Airway Development Act of 1970, the maximum amount the Government will

pay may be increased by not more than 10 percent. An increase

under this subsection may be paid only from amounts the Government recovers from other grants made under the Act.

(d) CHANGING WORKSCOPE.—With the consent of the sponsor,

the Secretary may amend a grant agreement made under this subchapter to change the workscope of a project financed under the

grant if the amendment does not result in an increase in the maximum amount the Government may pay under subsection (b) of

this section.

(e) CHANGE IN AIRPORT STATUS.—

(1) CHANGES TO NONPRIMARY AIRPORT STATUS.—If the status of a primary airport changes to a nonprimary airport at a

time when a development project under a multiyear agreement

under subsection (a) is not yet completed, the project shall remain eligible for funding from discretionary funds under section 47115 at the funding level and under the terms provided

by the agreement, subject to the availability of funds.

(2) CHANGES TO NONCOMMERCIAL SERVICE AIRPORT STA- TUS.—If the status of a commercial service airport changes to

a noncommercial service airport at a time when a terminal development project under a phased-funding arrangement is not

yet completed, the project shall remain eligible for funding

from discretionary funds under section 47115 at the funding

level and under the terms provided by the arrangement subject

to the availability of funds.

(3) CHANGES TO NONHUB PRIMARY STATUS- If the status of a

nonhub primary airport changes to a small hub primary airport

at a time when the airport has received discretionary funds

under this chapter for a terminal development project in

accordance with section 47110(d)(2), and the project is not yet

completed, the project shall remain eligible for funding from

the discretionary fund and the small airport fund to pay costs

allowable under section 47110(d). Such project shall remain

eligible for such funds for three fiscal years after the start of

construction of the project, or if the Secretary determines that

a further extension of eligibility is justified, until the project is

completed.

§ 47109. United States Government’s share of project costs

(a) GENERAL.—Except as provided in subsection (b) or sub- section (c) of this section, the United States Government’s share of

allowable project costs is—

(1) 75 percent for a project at a primary airport having at

least .25 percent of the total number of passenger boardings

each year at all commercial service airports;

(2) not more than 90 percent for a project funded by a

grant issued to and administered by a State under section

47128, relating to the State block grant program;

(3) 90 percent for a project at any other airport;

(4) 70 percent for a project funded by the Administrator

from the discretionary fund under section 47115 at an airport

receiving an exemption under section 47134; and

(5) for fiscal year 2002, 100 percent for a project described

in section 47102(3)(J), 47102(3)(K), or 47102(3)(L).

(b) INCREASED GOVERNMENT SHARE.—If, under subsection (a)

of this section, the Government’s share of allowable costs of a

project in a State containing unappropriated and unreserved public

lands and nontaxable Indian lands (individual and tribal) of more

than 5 percent of the total area of all lands in the State, is less

than the share applied on June 30, 1975, under section 17(b) of the

Airport and Airway Development Act of 1970, the Government’s

share under subsection (a) of this section shall be increased by the

lesser of—

(1) 25 percent;

(2) one-half of the percentage that the area of unappropriated and unreserved public lands and nontaxable Indian lands

in the State is of the total area of the State; or

(3) the percentage necessary to increase the Government’s

share to the percentage that applied on June 30, 1975, under

section 17(b) of the Act.

(c) GRANDFATHER RULE.—

(1) IN GENERAL.—In the case of any project approved after

September 30, 2003, at a small hub airport or nonhub airport

that is located in a State containing unappropriated and unreserved public lands and nontaxable Indian lands (individual

and tribal) of more than 5 percent of the total area of all lands

in the State, the Government’s share of allowable costs of the

project shall be increased by the same ratio as the basic share

of allowable costs of a project divided into the increased (Public

Lands States) share of allowable costs of a project as shown on

documents of the Federal Aviation Administration dated August 3, 1979, at airports for which the general share was 80

percent on August 3, 1979. This subsection shall apply only

if—

(A) the State contained unappropriated and unreserved public lands and nontaxable Indian lands of more

than 5 percent of the total area of all lands in the State

on August 3, 1979; and

(B) the application under subsection (b), does not in- crease 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 Govern-
197

ment share applicable to any project in any State under sub- section (b). (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.

§ 47110. Allowable project costs

(a) GENERAL AUTHORITY.—Except as provided in section 47111

of this title, the United States Government may pay or be obligated

to pay, from amounts appropriated to carry out this subchapter, a

cost incurred in carrying out a project under this subchapter only

if the Secretary of Transportation decides the cost is allowable.

(b) ALLOWABLE COST STANDARDS.—A project cost is allowable—

(1) if the cost necessarily is incurred in carrying out the

project in compliance with the grant agreement made for the

project under this subchapter, including any cost a sponsor incurs related to an audit the Secretary requires under section

47121(b) or (d) of this title and any cost of moving a Federal

facility impeding the project if the rebuilt facility is of an

equivalent size and type;

(2)(A) if the cost is incurred after the grant agreement is

executed and is for airport development or airport planning

carried out after the grant agreement is executed;

(B) if the cost is incurred after June 1, 1989, by the airport

operator (regardless of when the grant agreement is executed)

as part of a Government-approved noise compatability program

(including project formulation costs) and is consistent with all

applicable statutory and administrative requirements;

(C) if the Government’s share is paid only with amounts

apportioned under paragraphs (1) and (2) of section 47114(c) or

section 47114(d)(3)(A) and if the cost is incurred—

(i) after September 30, 1996;

(ii) before a grant agreement is executed for the

project; and

(iii) in accordance with an airport layout plan approved by the Secretary and with all statutory and administrative requirements that would have been applicable to

the project if the project had been carried out after the

grant agreement had been executed; or

(D) if the cost is incurred after September 11, 2001,

for a project described in section 47102(3)(J), 47102(3)(K),

or 47102(3)(L) and shall not depend upon the date of execution of a grant agreement made under this subchapter;

(3) to the extent the cost is reasonable in amount;

(4) if the cost is not incurred in a project for airport development or airport planning for which other Government assistance has been granted;

(5) if the total costs allowed for the project are not more

than the amount stated in the grant agreement as the max- imum the Government will pay (except as provided in section

47108(b) of this title); and

(6) if the cost is for a project not described in section

47102(3) for acquiring for use at a commercial service airport

vehicles and ground support equipment owned by an airport

that include low-emission technology, but only to the extent of

the incremental cost of equipping such vehicles or equipment

with low-emission technology, as determined by the Secretary.

(c) CERTAIN PRIOR COSTS AS ALLOWABLE COSTS.—The Secretary may decide that a project cost under subsection (b)(2)(A) of

this section incurred after May 13, 1946, and before the date the

grant agreement is executed is allowable if it is—

(1) necessarily incurred in formulating an airport develop- ment project, including costs incurred for field surveys, plans

and specifications, property interests in land or airspace, and

administration or other incidental items that would not have

been incurred except for the project; or

(2) necessarily and directly incurred in developing the

work scope of an airport planning project. (d) TERMINAL DEVELOPMENT COSTS.—(1) The Secretary may

decide that the cost of terminal development (including multimodal terminal development) in a nonrevenue-producing public-use

area of a commercial service airport is allowable for an airport development project at the 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 of this title;

(ii) all the security equipment required by regulation;

and

(iii) provided for access, to the area of the airport for

passengers for boarding or exiting aircraft, to those passengers boarding or exiting aircraft, except air carrier aircraft;

(B) if the cost is directly related to moving passengers and

baggage in air commerce within the airport, including vehicles

for moving passengers between terminal facilities and between

terminal facilities and aircraft; and

(C) under terms necessary to protect the interests of the

Government.

(2) In making a decision under paragraph (1) of this subsection, 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) e xc e p t a s pr o vid e d in sec tio n 4 7 10 8( 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 develop-
198

ment project affecting safety, security, or capacity will not be

deferred because of the Secretary’s approval.

(e) LETTERS OF INTENT.—(1) The Secretary may issue a letter

of intent to the sponsor stating an intention to obligate from future

budget authority an amount, not more than the Government’s

share of allowable project costs, for an airport development project

(including costs of formulating the project) at a primary or reliever

airport. The letter shall establish a schedule under which the Secretary will reimburse the sponsor for the Government’s share of allowable project costs, as amounts become available, if the sponsor,

after the Secretary issues the letter, carries out the project without

receiving amounts under this subchapter.

(2) Paragraph (1) of this subsection applies to a project—

(A) about which the sponsor notifies the Secretary, before

the project begins, of the sponsor’s intent to carry out the

project;

(B) that will comply with all statutory and administrative

requirements that would apply to the project if it were carried

out with amounts made available under this subchapter; and

(C) that meets the criteria of section 47115(d) and, if for

a project at a commercial service airport having at least 0.25

percent of the boardings each year at all such airports, the Secretary decides will enhance system-wide airport capacity significantly. (3) A letter of intent issued under paragraph (1) of this subsection is not an obligation of the Government under section 1501

of title 31, and the letter is not deemed to be an administrative

commitment for financing. An obligation or administrative commitment may be made only as amounts are provided in authorization

and appropriation laws. (4) The total estimated amount of future Government obligations covered by all outstanding letters of intent under paragraph

(1) of this subsection may not be more than the amount authorized

to carry out section 48103 of this title, less an amount reasonably

estimated by the Secretary to be needed for grants under section

48103 that are not covered by a letter.

(5) LETTERS OF INTENT.—The Secretary may not require an eligible agency to impose a passenger facility fee under section 40117

in order to obtain a letter of intent under this section. (6) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in

this section shall be construed to prohibit the obligation of

amounts pursuant to a letter of intent under this subsection in

the same fiscal year as the letter of intent is issued.

(f) NONALLOWABLE COSTS.—Except as provided in subsection

(d) of this section and section 47118(f) of this title, a cost is not an

allowable airport development project cost if it is for—

(1) constructing a public parking facility for passenger

automobiles;

(2) constructing, altering, or repairing part of an airport

building, except to the extent the building will be used for facilities or activities directly related to the safety of individuals

at the airport;

(3) decorative landscaping; or

(4) providing or installing sculpture or art works.

(g) USE OF DISCRETIONARY FUNDS.—A project for which cost reimbursement is provided under subsection (b)(2)(C) shall not receive priority consideration with respect to the use of discretionary

funds made available under section 47115 of this title even if the

amounts made available under paragraphs (1) and (2) of section

47114(c) or section 47114(d)(3)(A) are not sufficient to cover the

Government’s share of the cost of the project.

(h) NONPRIMARY AIRPORTS.—The Secretary may decide that

the costs of revenue producing aeronautical support facilities, including fuel farms and hangars, are allowable for an airport development project at a nonprimary airport if the Government’s share

of such costs is paid only with funds apportioned to the airport

sponsor under section 47114(d)(3)(A) and if the Secretary determines that the sponsor has made adequate provision for financing

airside needs of the airport.

§ 47111. Payments under project grant agreements

(a) GENERAL AUTHORITY.—After making a project grant agreement under this subchapter and consulting with the sponsor, the

Secretary of Transportation may decide when and in what amounts

payments under the agreement will be made. Payments totaling

not more than 90 percent of the United States Government’s share

of the project’s estimated allowable costs may be made before the

project is completed if the sponsor certifies to the Secretary that

the total amount expended from the advance payments at any time

will not be more than the cost of the airport development work

completed on the project at that time.

(b) RECOVERING PAYMENTS.—If the Secretary determines that

the total amount of payments made under a grant agreement

under this subchapter is more than the Government’s share of the

total allowable project costs, the Government may recover the excess amount. If the Secretary finds that a project for which an advance payment was made has not been completed within a reasonable time, the Government may recover any part of the advance

payment for which the Government received no benefit.

(c) PAYMENT DEPOSITS.—A payment under a project grant

agreement under this subchapter may be made only to an official

or depository designated by the sponsor and authorized by law to

receive public money.

(d) WITHHOLDING PAYMENTS.—(1) The Secretary may withhold

a payment under a grant agreement under this subchapter for

more than 180 days after the payment is due only if the

Secretary—

(A) notifies the sponsor and provides an opportunity for a

hearing; and

(B) finds that the sponsor has violated the agreement.
199

(2) The 180-day period may be extended by—

(A) agreement of 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 a payment may apply for review of the order by filing

a petition in the United States Court of Appeals for the District of

Columbia Circuit or in the court of appeals of the United States for

the circuit in which the project is located. The petition must be

filed not later than 60 days after the order is served on the petitioner.

(e) ACTION ON GRANT ASSURANCES CONCERNING AIRPORT REV- ENUES.—If, after notice and opportunity for a hearing, the Sec- retary finds a violation of section 47107(b) of this title, as further

defined by the Secretary under section 47107(l) of this title, or a

violation of an assurance made under section 47107(b) of this title, and the Secretary has provided an opportunity for the airport spon- sor to take corrective action to cure such violation, and such correc- tive action has not been taken within the period of time set by the

Secretary, the Secretary shall withhold approval of any new grant

application for funds under this chapter, or any proposed modifica- tion to an existing grant that would increase the amount of funds

made available under this chapter to the airport sponsor, and with- hold approval of any new application to impose a fee under section

40117 of this title. Such applications may thereafter be approved

only upon a finding by the Secretary that such corrective action as

the Secretary requires has been taken to address the violation and

that the violation no longer exists.

(f) JUDICIAL ENFORCEMENT.—For any violation of this chapter

or any grant assurance made under this chapter, the Secretary

may apply to the district court of the United States for any district

in which the violation occurred for enforcement. Such court shall

have jurisdiction to enforce obedience thereto by a writ of injunction or other process, mandatory or otherwise, restraining any person from further violation.

§ 47112. Carrying out airport development projects

(a) CONSTRUCTION WORK.—The Secretary of Transportation

may inspect and approve construction work for an airport development project carried out under a grant agreement under this subchapter. The construction work must be carried out in compliance

with regulations the Secretary prescribes. The regulations shall require the sponsor to make necessary cost and progress reports on

the project. The regulations may amend or modify a contract related to the project only if the contract was made with actual notice

of the regulations. (b) PREVAILING WAGES.—A contract for more than $2,000 involving labor for an airport development project carried out under

a grant agreement under this subchapter must require contractors

to pay labor minimum wage rates as determined by the Secretary

of Labor under sections 3141–3144, 3146, and 3147 of title 40. The

minimum rates must be included in the bids for the work and in

the invitation for those bids.

(c) VETERANS’ PREFERENCE.—(1) In this subsection—

(A) ‘‘disabled veteran’’ has the same meaning given that

term in section 2108 of title 5.

(B) ‘‘Vietnam-era veteran’’ means an individual who served

on active duty (as defined in section 101 of title 38) in the

armed forces for more than 180 consecutive days, any part of

which occurred after August 4, 1964, and before May 8, 1975,

and who was separated from 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 and disabled veterans when they are available and qualified for the employment.

§ 47113. Minority and disadvantaged business participation

(a) DEFINITIONS.—In this section—

(1) ‘‘small business concern’’—

(A) has the same meaning given that term in section

3 of the Small Business Act (15 U.S.C. 632); but

(B) does not include a concern, or group of concerns

controlled by the same socially and economically disadvantaged individual, that has average annual gross receipts

over the prior 3 fiscal years of more than $16,015,000, as

adjusted by the Secretary of Transportation for inflation;

(2) ‘‘socially and economically disadvantaged individual’’

has the same meaning given that term in section 8(d) of the

Act (15 U.S.C. 637(d)) and relevant subcontracting regulations

prescribed under section 8(d), except that women are presumed

to be socially and economically disadvantaged; and

(3) the term ‘‘qualified HUBZone small business concern’’

has the meaning given that term in section 3(p) of the Small

Business Act (15 U.S.C. 632(o)).

(b) GENERAL REQUIREMENT.—Except to the extent the Secretary decides otherwise, at least 10 percent of amounts available

in a fiscal year under section 48103 of this title shall be expended

with small business concerns owned and controlled by socially and

economically disadvantaged individuals or qualified HUBZone

small business concerns.

(c) UNIFORM CRITERIA.—The Secretary shall establish minimum uniform criteria for State governments and airport sponsors

to use in certifying whether a small business concern qualifies

under this section. The criteria shall include on-site visits, personal

interviews, licenses, analyses of stock ownership and bonding capacity, listings of equipment and work completed, resumes of principal owners, financial capacity, and type of work preferred.
200

(d) SURVEYS AND LISTS.—Each State or airport sponsor annually shall survey and compile a list of small business concerns referred to in subsection (b) of this section and the location of each

concern in the State.

§ 47114. Apportionments

(a) DEFINITION.—In this section, ‘‘amount subject to apportionment’’ means the amount newly made available under section

48103 of this title for a fiscal year.

(b) APPORTIONMENT DATE.—On the first day of each fiscal year,

the Secretary of Transportation shall apportion the amount subject

to apportionment for that fiscal year as provided in this section.

(c) AMOUNTS APPORTIONED TO SPONSORS.—

(1) PRIMARY AIRPORTS.—

(A) APPORTIONMENT.—The Secretary shall apportion to

the sponsor of each primary airport for each fiscal year an

amount equal to— (i) $7.80 for each of the first 50,000 passenger

boardings at the airport during the prior calendar

year;

(ii) $5.20 for each of the next 50,000 passenger

boardings at the airport during the prior calendar

year;

(iii) $2.60 for each of the next 400,000 passenger

boardings at the airport during the prior calendar

year;

(iv) $.65 for each of the next 500,000 passenger

boardings at the airport during the prior calendar

year; and

(v) $.50 for each additional passenger boarding at

the airport during the prior calendar year.

(B) MINIMUM AND MAXIMUM APPORTIONMENTS.—Not

less than $650,000 nor more than $22,000,000 may be ap- portioned 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 sub- paragraph (B) or (C), as appropriate, to the sponsor of such

airport.

(E) USE OF PREVIOUS FISCAL YEAR’S APPORTIONMENT.—

Notwithstanding subparagraph (A), the Secretary may apportion to an airport sponsor in a fiscal year an amount

equal to the amount apportioned to that sponsor in the

previous fiscal year if the Secretary finds that—

(i) passenger boardings at the airport fell below

10,000 in the calendar year used to calculate the apportionment;

(ii) the airport had at least 10,000 passenger

boardings in the calendar year prior to the calendar

year used to calculate apportionments to airport sponsors in a fiscal year; and

(iii) the cause of the shortfall in passenger

boardings was a temporary but significant interruption in service by an air carrier to that airport due to

an employment action, natural disaster, or other event

unrelated to the demand for air transportation at the

affected airport.

(F) SPECIAL RULE FOR FISCAL YEARS 2004 AND 2005.—

Notwithstanding subparagraph (A) and the absence of

scheduled passenger aircraft service at an airport, the Secretary may apportion in fiscal years 2004 and 2005 to the

sponsor of the airport an amount equal to the amount apportioned to that sponsor in fiscal year 2002 or 2003,

whichever amount is greater, if the Secretary finds that—

(i) the passenger boardings at the airport were

below 10,000 in calendar year 2002 or 2003;

(ii) the airport had at least 10,000 passenger

boardings and scheduled passenger aircraft service in

either calendar year 2000 or 2001; and

(iii) the reason that passenger boardings described

in clause (i) were below 10,000 was the decrease in

passengers following the terrorist attacks of September 11, 2001.

(G) SPECIAL RULE FOR FISCAL YEAR 2006- Notwithstanding

subparagraph (A) and the absence of scheduled passenger

aircraft service at an airport, the Secretary may apportion in

fiscal year 2006 to the sponsor of the airport an amount equal

to $500,000, if the Secretary finds that--

(i) the passenger boardings at the airport were below

10,000 in calendar year 2004;

(ii) the airport had at least 10,000 passenger

boardings and scheduled passenger aircraft service in

either calendar year 2000 or 2001; and

(iii) the reason that passenger boardings described in

clause (i) were below 10,000 was the decrease in
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passengers following the terrorist attacks of September 11,

2001.

(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 defini- tions 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 fol- lows:

(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.

(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 con-
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struction 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. (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 fee 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 fee of $3.00 or less, 50 percent of

the projected revenues from the fee in the fiscal year but

not by more than 50 percent of the amount that otherwise

would be apportioned under this section; and

(B) in the case of a fee of more than $3.00, 75 percent

of the projected revenues from the fee in the fiscal year but

not by more than 75 percent of the amount that otherwise

would be apportioned under this section.

(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 fee 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 applica- tion of paragraph (1) in a fiscal year to such sponsor and

the projected revenues to be derived from the fee in such

fiscal year shall not be less than the sum of the apportion- ment to such airport for the preceding fiscal year and the

revenues derived from such fee in the preceding fiscal

year.

(B) EFFECTIVE PERIOD.—Subparagraph (A) shall be in

effect for fiscal year 2004.

§ 47115. Discretionary fund

(a) EXISTENCE AND AMOUNTS IN FUND.—The Secretary of

Transportation has a discretionary fund. The fund consists of—

(1) amounts subject to apportionment for a fiscal year that

are not apportioned under section 47114(c)–(e) of this title; and

(2) 12.5 percent of amounts not apportioned under section

47114 of this title because of section 47114(f).

(b) AVAILABILITY OF AMOUNTS.—Subject to subsection (c) of this

section and section 47117(e) of this title, the fund is available for

making grants for any purpose for which amounts are made available under section 48103 of this title that the Secretary considers

most appropriate to carry out this subchapter.

(c) MINIMUM PERCENTAGE FOR PRIMARY AND RELIEVER AIRPORTS.—At least 75 percent of the amount in the fund and distributed by the Secretary in a fiscal year shall be used for making

grants—

(1) to preserve and enhance capacity, safety, and security

at primary and reliever airports; and

(2) to carry out airport noise compatibility planning and
203

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 na- tional 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 oper- ations 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 capac- ity;

(D) the airport improvement priorities of the States to

the extent such priorities are not in conflict with subpara- graphs (A) and (B);

(E) the projected growth in the number of passengers

or aircraft that will be using the airport at which the

project will be carried out; and

(F) the ability of the project to foster United States

competitiveness in securing global air cargo activity at a

United States airport.

(2) FOR ALL PROJECTS.—In selecting a project for a grant

under this section, the Secretary shall consider among other

factors whether—

(A) funding has been provided for all other projects

qualifying for funding during the fiscal year under this

chapter that have attained a higher score under the numerical priority system employed by the Secretary in administering the fund; and

(B) the sponsor will be able to commence the work

identified in the project application in the fiscal year in

which the grant is made or within 6 months after the

grant is made, whichever is later. (e) WAIVING PERCENTAGE REQUIREMENT.—If the Secretary decides the Secretary cannot comply with the percentage requirement

of subsection (c) of this section in a fiscal year because there are

insufficient qualified grant applications to meet that percentage,

the amount the Secretary determines will not be distributed as required by subsection (c) is available for obligation during the fiscal

year without regard to the requirement.

(f) CONSIDERATION OF DIVERSION OF REVENUES IN AWARDING

DISCRETIONARY GRANTS.— (1) GENERAL RULE.—Subject to paragraph (2), in deciding

whether or not to distribute funds to an airport from the discretionary funds established by subsection (a) of this section

and section 47116 of this title, the Secretary shall consider as

a factor militating against the distribution of such funds to the

airport the fact that the airport is using revenues generated by

the airport or by local taxes on aviation fuel for purposes other

than capital or operating costs of the airport or the local airports system or other local facilities which are owned or operated by the owner or operator of the airport and directly and

substantially related to the actual air transportation of passengers or property.

(2) REQUIRED FINDING.—Paragraph (1) shall apply only

when the Secretary finds that the amount of revenues used by

the airport for purposes other than capital or operating costs

in the airport’s fiscal year preceding the date of the application

for discretionary funds exceeds the amount of such revenues in

the airport’s first fiscal year ending after August 23, 1994, adjusted by the Secretary for changes in the Consumer Price

Index of All Urban Consumers published by the Bureau of

Labor Statistics of the Department of Labor.

(g) MINIMUM AMOUNT TO BE CREDITED.—

(1) GENERAL RULE.—In a fiscal year, there shall be credited to the fund, out of amounts made available under section

48103 of this title, an amount that is at least equal to the sum

of—

(A) $148,000,000; plus

(B) the total amount required from the fund to carry

out in the fiscal year letters of intent issued before January 1, 1996, under section 47110(e) of this title or the Airport and Airway Improvement Act of 1982.

The amount credited is exclusive of amounts that have been

apportioned in a prior fiscal year under section 47114 of this

title and that remain available for obligation.

(2) REDUCTION OF APPORTIONMENTS.—In a fiscal year in

which the amount credited under subsection (a) is less than

the minimum amount to be credited under paragraph (1), the

total amount calculated under paragraph (3) shall be reduced

by an amount that, when credited to the fund, together with

the amount credited under subsection (a), equals such min- imum amount.

(3) AMOUNT OF REDUCTION.—For a fiscal year, the total

amount available to make a reduction to carry out paragraph

(2) is the total of the amounts determined under sections

47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) of this title.

Each amount shall be reduced by an equal percentage to

achieve the reduction.

(h) PRIORITY FOR LETTERS OF INTENT.—In making grants in a

fiscal year with funds made available under this section, the Secretary shall fulfill intentions to obligate under section 47110(e).

(i) CONSIDERATIONS FOR PROJECT UNDER EXPANDED SECURITY

ELIGIBILITY.—In order to assure that funding under this subchapter is provided to the greatest needs, the Secretary, in selecting a project described in section 47102(3)(J) for a grant, shall con- sider the non-federal resources available to sponsor, the use of such
204

non-federal resources, and the degree to which the sponsor is providing increased funding for the project.

(j) MARSHALL ISLANDS, MICRONESIA, AND PALAU.—For fiscal

years 2004 through 2007, the sponsors of airports located in the

Republic of the Marshall Islands, Federated States of Micronesia,

and Republic of Palau shall be eligible for grants under this section

and section 47116.

§ 47116. Small airport fund

(a) EXISTENCE AND AMOUNTS IN FUND.—The Secretary of

Transportation has a small airport fund. The fund consists of 87.5

percent of amounts not apportioned under section 47114 of this

title because of section 47114(f). (b) DISTRIBUTION OF AMOUNTS.—The Secretary may distribute

amounts in the fund in each fiscal year for any purpose for which

amounts are made available under section 48103 of this title as fol- lows:

(1) one-seventh for grants for projects at small hub air- ports; and

(2) the remaining amounts based on the following:

(A) one-third for grants to sponsors of public-use air- ports (except commercial service airports).

(B) two-thirds for grants to sponsors of each commer- cial service airport that each year has less than .05 per- cent of the total boardings in the United States in that

year.

(c) AUTHORITY TO RECEIVE GRANT NOT DEPENDENT ON PARTICIPATION IN BLOCK GRANT PILOT PROGRAM.—An airport in a

State participating in the State block grant pilot program under

section 47128 of this title may receive a grant under this section

to the same extent the airport may receive a grant if the State

were not participating in the program.

(d) PRIORITY CONSIDERATION FOR CERTAIN PROJECTS.—

(1) CONSTRUCTION OF NEW RUNWAYS.—In making grants to

sponsors described in subsection (b)(2), the Secretary shall give

priority consideration to multi-year projects for construction of

new runways that the Secretary finds are cost beneficial and

would increase capacity in a region of the United States.

(2) AIRPORT DEVELOPMENT FOR TURBINE POWERED AIRCRAFT.—In making grants to sponsors described in subsection

(b)(1), the Secretary shall give priority consideration to airport

development projects to support operations by turbine powered

aircraft if the non-Federal share of the project is at least 40

percent.

(e) SET-ASIDE FOR MEETING SAFETY TERMS IN AIRPORT OPERATING CERTIFICATES.—In the first fiscal year beginning after the ef- fective date of regulations issued to carry out section 44706(b) with

respect to airports described in section 44706(a)(2), and in each of

the next 4 fiscal years, the lesser of $15,000,000 or 20 percent of

the amounts that would otherwise be distributed to sponsors of airports under subsection (b)(2) shall be used to assist the airports in

meeting the terms established by the regulations. If the Secretary

publishes in the Federal Register a finding that all the terms established by the regulations have been met, this subsection shall

cease to be effective as of the date of such publication.

(f) NOTIFICATION OF SOURCE OF GRANT.—Whenever the Secretary makes a grant under this section, the Secretary shall notify

the recipient of the grant, in writing, that the source of the grant

is from the small airport fund.

§ 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 agree- ment with the Secretary of Transportation waiving the spon- sor’s claim to any part of the amount apportioned for the air- port under sections 47114(c) and 47114(d)(3)(A) if the Sec- retary agrees to make the waived amount available for a grant

for another public-use airport in the same State or geo- graphical 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 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
205

and local governments under section 47141, and 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.). 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

such 35 percent requirement is being met in that fiscal year.

(B) At least 4 percent to sponsors of current or former military airports designated by the Secretary under section

47118(a) of this title for grants for developing current and

former military airports to improve the capacity of the national

air transportation system and to sponsors of noncommercial

service airports for grants for operational and maintenance expenses at any such airport if the amount of such grants to the

sponsor of the airport does not exceed $30,000 in that fiscal

year, if the Secretary determines that the airport is adversely

affected by the closure or realignment of a military base, and

if the sponsor of the airport certifies that the airport would

otherwise close if the airport does not receive the grant.

(C) In any fiscal year in which the total amount made

available under section 48103 is $3,200,000,000 or more, at

least two-thirds of 1 percent for grants to sponsors of reliever

airports which have—

(i) more than 75,000 annual operations;

(ii) a runway with a minimum usable landing distance

of 5,000 feet;

(iii) a precision instrument landing procedure;

(iv) a minimum number of aircraft, to be determined

by the Secretary, based at the airport; and

(v) been designated by the Secretary as a reliever air- port 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 appli- cations, the amount the Secretary determines cannot be used is

available during the fiscal year for grants for other airports or for

other purposes for which amounts are authorized for grants under

section 48103 of this title.

(3) PRIORITY.—The Secretary shall give priority in making grants under paragraph (1)(A) to applications for airport

noise compatibility planning and programs at and around—

(A) Chicago O’Hare International Airport;

(B) LaGuardia Airport;

(C) John F. Kennedy International Airport; and

(D) Ronald Reagan Washington National Airport.

(f) DISCRETIONARY USE OF APPORTIONMENTS.—

(1) IN GENERAL.—Subject to paragraph (2), if the Secretary

finds that all or part of an amount of an apportionment under

section 47114 is not required during a fiscal year to fund a

grant for which the apportionment may be used, the Secretary

may use during such fiscal year the amount not so required to

make grants for any purpose for which grants may be made

under section 48103. The finding may be based on the notifications that the Secretary receives under section 47105(f) or on

other information received from airport sponsors.

(2) RESTORATION OF APPORTIONMENTS.—

(A) IN GENERAL.—If the fiscal year for which a finding

is made under paragraph (1) with respect to an apportionment is not the last fiscal year of availability of the apportionment under subsection (b), the Secretary shall restore

to the apportionment an amount equal to the amount of

the apportionment used under paragraph (1) for a discretionary grant whenever a sufficient amount is made available under section 48103.

(B) PERIOD OF AVAILABILITY.—If restoration under this

paragraph is made in the fiscal year for which the finding

is made or the succeeding fiscal year, the amount restored

shall be subject to the original period of availability of the

apportionment under subsection (b). If the restoration is

made thereafter, the amount restored shall remain available in accordance with subsection (b) for the original period of availability of the apportionment plus the number

of fiscal years during which a sufficient amount was not

available for the restoration.

(3) NEWLY AVAILABLE AMOUNTS.— (A) RESTORED AMOUNTS TO BE UNAVAILABLE FOR DIS- CRETIONARY 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 avail- able 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.
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§ 47118. Designating current and former military airports

(a) GENERAL REQUIREMENTS.—The Secretary of Transportation

shall designate current or former military airports for which grants

may be made under section 47117(e)(1)(B) of this title. The maximum number of airports bearing such designation at any time is

15. The Secretary may only so designate an airport (other than an

airport so designated before August 24, 1994) if—

(1) the airport is a former military installation closed or realigned under—

(A) section 2687 of title 10;

(B) section 201 of the Defense Authorization Amendments and Base Closure and Realignment Act (10 U.S.C.

2687 note); or

(C) section 2905 of the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note); or

(2) the airport is a military installation with both military and

civil aircraft operations.

(b) SURVEY.—Not later than September 30, 1991, the Secretary

shall complete a survey of current and former military airports to

identify which airports have the greatest potential to improve the

capacity of the national air transportation system. The survey shall

identify the capital development needs of those airports to make

them part of the system and which of those qualify for grants

under section 47104 of this title.

(c) CONSIDERATIONS.—In carrying out this section, the Secretary shall consider only current or former military airports for

designation under this section if a grant under section

47117(e)(1)(B) would—

(1) reduce delays at an airport with more than 20,000

hours of annual delays in commercial passenger aircraft takeoffs and landings; or

(2) enhance airport and air traffic control system capacity

in a metropolitan area or reduce current and projected flight

delays.

(d) GRANTS.—Grants under section 47117(e)(1)(B) of this title

may be made for an airport designated under subsection (a) of this

section for the 5 fiscal years following the designation, and for subsequent periods, each not to exceed 5 fiscal years, if the Secretary

determines that the airport satisfies the designation criteria under

subsection (a) at the beginning of each such subsequent period.

(e) TERMINAL BUILDING FACILITIES.—From amounts the Secretary distributes to an airport under section 47115, $10,000,000

for each of fiscal years 2004 and 2005, and $7,000,000 for each fiscal year thereafter, is available to the sponsor of a current or

former military airport the Secretary designates under this section

to construct, improve, or repair a terminal building facility, including terminal gates used for revenue passengers getting on or off

aircraft. A gate constructed, improved, or repaired under this

subsection—

(1) may not be leased for more than 10 years; and

(2) is not subject to majority in interest clauses.

(f) PARKING LOTS, FUEL FARMS, UTILITIES, HANGARS AND AIR

CARGO TERMINALS.—

(1) CONSTRUCTION.—From amounts the Secretary distributes to an airport under section 47115, $10,000,000 for each of

fiscal years 2004 and 2005, and $7,000,000 for each fiscal year

thereafter, is available to the sponsor of a current or former

military airport the Secretary designates under this section to

construct, improve, or repair airport surface parking lots, fuel

farms, utilities, and hangars and air cargo terminals of an area

that is 50,000 square feet or less.

(2) REIMBURSEMENT.—Upon approval of the Secretary, the

sponsor of a current or former military airport the Secretary

designates under this section may use an amount apportioned

under section 47114, or made available under section 47115 or

47117(e)(1)(B), to the airport for reimbursement of costs incurred by the airport in fiscal years 2003 and 2004 for construction, improvement, or repair described in paragraph (1).

(g) DESIGNATION OF GENERAL AVIATION AIRPORT.—Notwithstanding any other provision of this section, one of the airports

bearing a designation under subsection (a) may be a general aviation airport that was a former military installation closed or realigned under a section referred to in subsection (a)(1).

§ 47119. Terminal development costs

(a) 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
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(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 section 47110(d).

(4) CONDITIONS FOR GRANT.—An amount is available for a

grant under this subsection only if—

(A) the sponsor submits the certification required

under section 47110(d);

(B) the Secretary of Transportation 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 subsection (b)(1) and (2).

(b) 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 section 47110(d) of this title;

(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 section

47110(d) of this title; and

(B) to a sponsor of a reliever airport for the types of

project costs allowable under section 47110(d), 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 section 47110(d) of

this title;

(4) not more than $25,000,000 to pay project costs allowable for the fiscal year under section 47110(d) of this title 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 section

47110(d).

(c) 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.

(d) DETERMINATION OF PASSENGER BOARDING AT COMMERCIAL

SERVICE AIRPORTS.—For the purpose of determining whether an

amount may be distributed for a fiscal year from the discretionary

fund in accordance with subsection (b)(2)(A) to a commercial service airport, the Secretary shall make the determination of whether

or not a public airport is a commercial service airport on the basis

of the number of passenger boardings and type of air service at the

public airport in the calendar year that includes the first day of

such fiscal year or the preceding calendar year, whichever is more

beneficial to the airport.

§ 47120. Grant priority

(a) IN GENERAL.—In making a grant under this subchapter,

the Secretary of Transportation may give priority to a project that

is consistent with an integrated airport system plan.

(b) DISCRETIONARY FUNDING TO BE USED FOR HIGHER PRIORITY PROJECTS.—The Administrator of the Federal Aviation Ad- ministration shall discourage airport sponsors and airports from

using entitlement funds for lower priority projects by giving lower

priority to discretionary projects submitted by airport sponsors and

airports that have used entitlement funds for projects that have a

lower priority than the projects for which discretionary funds are

being requested.

§ 47121. Records and audits

(a) RECORDS.—A sponsor shall keep the records the Secretary

of Transportation requires. The Secretary may require records—

(1) that disclose—

(A) the amount and disposition by the sponsor of the

proceeds of the grant;

(B) the total cost of the plan or program for which the

grant is given or used; and

(C) the amounts and kinds of costs of the plan or pro- gram provided by other sources; and

(2) that make it easier to carry out an audit.

(b) AUDITS AND EXAMINATIONS.—The Secretary and the Comptroller General may audit and examine records of a sponsor that

are related to a grant made under this subchapter.

(c) AUTHORITY OF COMPTROLLER GENERAL.—When an inde-
208

pendent audit is made of the accounts of a sponsor under this sub- chapter related to the disposition of the proceeds of the grant or re- lated to the plan or program for which the grant was given or used, the sponsor shall submit a certified copy of the audit to the Sec- retary not more than 6 months after the end of the fiscal year for

which the audit was made. The Comptroller General may report to

Congress describing the results of each audit conducted or reviewed

by the Comptroller General under this section during the prior fis- cal year.

(d) AUDIT REQUIREMENT.—The Secretary may require a sponsor to conduct an appropriate audit as a condition for receiving a

grant under this subchapter.

(e) ANNUAL REVIEW.—The Secretary shall review annually the

recordkeeping and reporting requirements under this subchapter to

ensure that they are the minimum necessary to carry out this subchapter.

(f) WITHHOLDING INFORMATION FROM CONGRESS.—This section

does not authorize the Secretary or the Comptroller General to

withhold information from a committee of Congress authorized to

have the information.

§ 47122. Administrative

(a) GENERAL.—The Secretary of Transportation may take action the Secretary considers necessary to carry out this subchapter,

including conducting investigations and public hearings, prescribing regulations and procedures, and issuing orders.

(b) CONDUCTING INVESTIGATIONS AND PUBLIC HEARINGS.—In

conducting an investigation or public hearing under this subchapter, the Secretary has the same authority the Secretary has

under section 46104 of this title. An action of the Secretary in exercising that authority is governed by the procedures specified in section 46104 and shall be enforced as provided in section 46104.

§ 47123. Nondiscrimination

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.

§ 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) 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.

(2) 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-tocost ratio using actual site-specific contract tower operating costs in any case in which there is an operating air traffic control tower, as required for eligibility under the Contract Tower Program.

(C) PRIORITY.—In selecting facilities to participate in

the program, the Secretary shall give priority to the following facilities:

(i) Air traffic control towers that are participating

in the Contract Tower Program but have been notified

that they will be terminated from such program be- cause the Secretary has determined that the benefitto-cost ratio for their continuation in such program is

less than 1.0. (ii) Air traffic control towers that the Secretary de-
209

termines have a benefit-to-cost ratio of at least .50.

(iii) Air traffic control towers of the Federal

Avia- tion 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.

(E) FUNDING.—Of the amounts appropriated pursuant

to section 106(k), not more than $6,500,000 for fiscal 2004,

$7,000,000 for fiscal year 2005, $7,500,000 for fiscal year

2006, and $8,000,000 for fiscal year 2007 may be used to

carry out this paragraph.

(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 sec- tions 47114(c)(1) and 47114(c)(2) for the construction or improvement of a nonapproach control

tower, as defined by the Secretary, and for the ac- quisition and installation of air traffic control,

communications, and related equipment to be

used in that tower;

(II) from amounts made available under sec- tions 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; and

(ii) a public-use airport that is not a primary

airport—

(I) from amounts made available under sec- tions 47114(c)(2) and 47114(d) for the construction

or improvement of a nonapproach control tower, as defined by the Secretary, and for the acquisi- tion and installation of air traffic control, commu- nications, and related equipment to be used in

that tower;

(II) from amounts made available under sec- tions 47114(c)(2) and 47114(d)(3)(A) for reimburse- ment 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 sec- tions 47107(e), 47112(b), and 47112(c) in con- structing 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.

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

for a grant under this paragraph only if—

(i)(I) the sponsor is a participant in the Federal

Aviation Administration contract tower program established under subsection (a) and continued under

paragraph (1) or the pilot program established under

paragraph (3); or

(II) construction of a nonapproach control tower

would qualify the sponsor to be eligible to participate

in such program;

(ii) the sponsor certifies that it will pay not less

than 10 percent of the cost of the activities for which

the sponsor is receiving assistance under this paragraph;

(iii) the Secretary affirmatively accepts the pro- posed 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
210

section 47114(d)(2) or 47114(d)(3)(B), the Secretary

certifies that— (I) the Federal Aviation Administration has

consulted the State within the borders of which

the tower is to be constructed and the State supports the construction of the tower as part of its

State airport capital plan; and

(II) the selection of the tower for funding is

based on objective criteria.

(C) LIMITATION ON FEDERAL SHARE.—The Federal

share of the cost of construction of a nonapproach control

tower under this paragraph may not exceed $1,500,000.

§ 47125. Conveyances of United States Government land

(a) CONVEYANCES TO PUBLIC AGENCIES.—Except as provided in

subsection (b) of this section, the Secretary of Transportation shall

request the head of the department, agency, or instrumentality of

the United States Government owning or controlling land or air- space to convey a property interest in the land or airspace to the

public agency sponsoring the project or owning or controlling the

airport when necessary to carry out a project under this subchapter

at a public airport, to operate a public airport, or for the future development of an airport under the national plan of integrated airport systems. The head of the department, agency, or instrumen- tality shall decide whether the requested conveyance is consistent

with the needs of the department, agency, or instrumentality and

shall notify the Secretary of that decision not later than 4 months

after receiving the request. If the head of the department, agency,

or instrumentality decides that the requested conveyance is consistent with its needs, the head of the department, agency, or in- strumentality, with the approval of the Attorney General and without cost to the Government, shall make the conveyance. A conveyance may be made only on the condition that the property interest

conveyed reverts to the Government, at the option of the Secretary,

to the extent it is not developed for an airport purpose or used consistently with the conveyance. Before waiving a condition that

property be used for an aeronautical purpose under the preceding

sentence, the Secretary must provide notice to the public not less

than 30 days before waiving such condition. (b) NONAPPLICATION.—Except as specifically provided by law,

subsection (a) of this section does not apply to land or airspace

owned or controlled by the Government within— (1) a national park, national monument, national recreation area, or similar area under the administration of the National Park Service;

(2) a unit of the National Wildlife Refuge System or similar area under the jurisdiction of the United States Fish and

Wildlife Service; or

(3) a national forest or Indian reservation.

§ 47126. Criminal penalties for false statements

A person (including an officer, agent, or employee of the United

States Government or a public agency) shall be fined under title

18, imprisoned for not more than 5 years, or both, if the person,

with intent to defraud the Government, knowingly makes—

(1) a false statement about the kind, quantity, quality, or

cost of the material used or to be used, or the quantity, quality,

or cost of work performed or to be performed, in connection

with the submission of a plan, map, specification, contract, or

estimate of project cost for a project included in a grant application submitted to the Secretary of Transportation for approval under this subchapter;

(2) a false statement or claim for work or material for a

project included in a grant application approved by the Secretary under this subchapter; or

(3) a false statement in a report or certification required

under this subchapter.

§ 47127. Ground transportation demonstration projects

(a) GENERAL AUTHORITY.—To improve the airport and airway

system of the United States consistent with regional airport system

plans financed under section 13(b) of the Airport and Airway Development Act of 1970, the Secretary of Transportation may carry

out ground transportation demonstration projects to improve

ground access to air carrier airport terminals. The Secretary may

carry out a demonstration project independently or by grant or contract, including an agreement with another department, agency, or

instrumentality of the United States Government.

(b) PRIORITY.—In carrying out this section, the Secretary shall

give priority to a demonstration project that—

(1) affects an airport in an area with an operating regional

rapid transit system with existing facilities reasonably near

the airport;

(2) includes connection of the airport terminal to that sys- tem;

(3) is consistent with and supports a regional airport system plan adopted by the planning agency for the region and

submitted to the Secretary; and

(4) improves access to air transportation for individuals re- siding or working in the region by encouraging the optimal balance of use of airports in the region.

§ 47128. State block grant program

(a) GENERAL REQUIREMENTS.—The Secretary of Transportation

shall prescribe regulations to carry out a State block grant program. The regulations shall provide that the Secretary may des- ignate not more than 9 qualified States for fiscal years 2000 and

2001 and 10 qualified States for each fiscal year thereafter to assume administrative responsibility for all airport grant amounts
211

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; 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 pro- gramming 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.

§ 47129. Resolution of airport-air carrier disputes concerning airport fees

(a) AUTHORITY TO REQUEST SECRETARY’S DETERMINATION.—

(1) IN GENERAL.—The Secretary of Transportation shall

issue a determination as to whether a fee imposed upon one or

more air carriers (as defined in section 40102 of this title) by

the owner or operator of an airport is reasonable if—

(A) a written request for such determination is filed

with the Secretary by such owner or operator; or

(B) a written complaint requesting such determination

is filed with the Secretary by an affected air carrier within

60 days after such carrier receives written notice of the establishment or increase of such fee.

(2) CALCULATION OF FEE.—A fee subject to a determination

of reasonableness under this section may be calculated pursuant to either a compensatory or residual fee methodology or

any combination thereof.

(3) SECRETARY NOT TO SET FEE.—In determining whether

a fee is reasonable under this section, the Secretary may only

determine whether the fee is reasonable or unreasonable and

shall not set the level of the fee.

(4) FEES IMPOSED BY PRIVATELY-OWNED AIRPORTS.—In evaluating the reasonableness of a fee imposed by an airport receiving an exemption under section 47134 of this title, the Secretary shall consider whether the airport has complied with

section 47134(c)(4).

(b) PROCEDURAL REGULATIONS.—Not later than 90 days after

August 23, 1994, the Secretary shall publish in the Federal Register final regulations, policy statements, or guidelines

establishing—

(1) the procedures for acting upon any written request or

complaint filed under subsection (a)(1); and

(2) the standards or guidelines that shall be used by the

Secretary in determining under this section whether an airport

fee is reasonable.

(c) DECISIONS BY SECRETARY.—The final regulations, policy

statements, or guidelines required in subsection (b) shall provide

the following:

(1) Not more than 120 days after an air carrier files with

the Secretary a written complaint relating to an airport fee,

the Secretary shall issue a final order determining whether

such fee is reasonable. (2) Within 30 days after such complaint is filed with the

Secretary, the Secretary shall dismiss the complaint if no sig- nificant dispute exists or shall assign the matter to an admin- istrative law judge; and thereafter the matter shall be handled

in accordance with part 302 of title 14, Code of Federal Regula- tions, or as modified by the Secretary to ensure an orderly dis- position of the matter within the 120-day period and any spe- cifically applicable provisions of this section.

(3) The administrative law judge shall issue a rec- ommended decision within 60 days after the complaint is as- signed or within such shorter period as the Secretary may

specify.

(4) If the Secretary, upon the expiration of 120 days after

the filing of the complaint, has not issued a final order, the de- cision 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 where the airport which gives

rise to the written complaint is located. (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 shall 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.

(d) PAYMENT UNDER PROTEST; GUARANTEE OF AIR CARRIER AC-
212

CESS.—

(1) PAYMENT UNDER PROTEST.—

(A) IN GENERAL.—Any fee increase or newly established fee which is the subject of a complaint that is not

dismissed by the Secretary shall be paid by the complainant air carrier to the airport under protest.

(B) REFERRAL OR CREDIT.—Any amounts paid under

this subsection by a complainant air carrier to the airport

under protest shall be subject to refund or credit to the air

carrier in accordance with directions in the final order of

the Secretary within 30 days of such order.

(C) ASSURANCE OF TIMELY REPAYMENT.—In order to

assure the timely repayment, with interest, of amounts in

dispute determined not to be reasonable by the Secretary,

the airport 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 120-day period established by

this section, plus interest, unless the airport and the complainant air carrier agree otherwise.

(D) DEADLINE.—The letter of credit, or surety bond, or

other suitable credit facility shall be provided to the Secretary within 20 days of the filing of the complaint and

shall remain in effect for 30 days after the earlier of 120

days or the issuance of a timely final order by the Secretary determining whether such fee is reasonable.

(2) GUARANTEE OF AIR CARRIER ACCESS.—Contingent upon

an air carrier’s compliance with the requirements of paragraph

(1) and pending the issuance of a final order by the Secretary

determining the reasonableness of a fee that is the subject of

a complaint filed under subsection (a)(1)(B), an owner or operator of an airport may not deny an air carrier currently providing air service at the airport reasonable access to airport facilities or service, or otherwise interfere with an air carrier’s

prices, routes, or services, as a means of enforcing the fee.

(e) APPLICABILITY.—This section does not apply to—

(1) a fee imposed pursuant to a written agreement with air

carriers using the facilities of an airport;

(2) a fee imposed pursuant to a financing agreement or

covenant entered into prior to August 23, 1994; or

(3) any other existing fee not in dispute as of August 23,

1994.

(f) EFFECT ON EXISTING AGREEMENTS.—Nothing in this section

shall adversely affect—

(1) the rights of any party under any existing written

agreement between an air carrier and the owner or operator of

an airport; or

(2) the ability of an airport to meet its obligations under

a financing agreement, or covenant, that is in force as of August 23, 1994.

(g) DEFINITION.—In this section, the term ‘‘fee’’ means any

rate, rental charge, landing fee, or other service charge for the use

of airport facilities.

§ 47130. Airport safety data collection

Notwithstanding any other provision of law, the Administrator

of the Federal Aviation Administration may award a contract,

using sole source or limited source authority, or enter into a cooperative agreement with, or provide a grant from amounts made available under section 48103 to, a private company or entity for the

collection of airport safety data. In the event that a grant is provided under this section, the United States Government’s share of

the cost of the data collection shall be 100 percent.

§ 47131. Annual report

(a) GENERAL RULE.—Not later than April 1 of each year, the

Secretary of Transportation shall submit to Congress a report on

activities carried out under this subchapter during the prior fiscal

year. The report shall include—

(1) a detailed statement of airport development completed;

(2) the status of each project undertaken;

(3) the allocation of appropriations;

(4) an itemized statement of expenditures and receipts;

and

(5) a detailed statement listing airports that the Secretary

believes are not in compliance with grant assurances or other

requirements with respect to airport lands and including the

circumstances of such noncompliance, the timelines for corrective action, and the corrective action the Secretary intends to

take to bring the airport sponsor into compliance.

(b) SPECIAL RULE FOR LISTING NONCOMPLIANT AIRPORTS.—The

Secretary does not have to conduct an audit or make a final determination before including an airport on the list referred to in sub- section (a)(5).

§ 47132. Repealed by P.L. 106–181 (114 Stat. 74)¿

§ 47133. Restriction on use of revenues

(a) PROHIBITION.—Local taxes on aviation fuel (except taxes in

effect on December 30, 1987) or the revenues generated by an airport that is the subject of Federal assistance may not be expended

for any purpose other than the capital or operating costs of—

(1) the airport;

(2) the local airport system; or

(3) any other local facility that is owned or operated by the

person or entity that owns or operates the airport that is directly and substantially related to the air transportation of

passengers or property.

(b) EXCEPTIONS.—Subsection (a) shall 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 assur-
213

ance 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.

(c) RULE OF CONSTRUCTION.—Nothing in this section may be

construed to 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.

§ 47134. Pilot program on private ownership of airports

(a) SUBMISSION OF APPLICATIONS.—If a sponsor intends to sell

or lease a general aviation airport or lease any other type of airport

for a long term to a person (other than a public agency), the sponsor and purchaser or lessee may apply to the Secretary of Transportation for exemptions under this section.

(b) APPROVAL OF APPLICATIONS.—The Secretary may approve,

with respect to not more than 5 airports, applications submitted

under subsection (a) granting exemptions from the following provisions:

(1) USE OF REVENUES.—

(A) IN GENERAL.—The Secretary may grant an exemption to a sponsor from the provisions of sections 47107(b)

and 47133 of this title (and any other law, regulation, or

grant assurance) to the extent necessary to permit the

sponsor to recover from the sale or lease of the airport

such amount as may be approved—

(i) in the case of a primary airport, by at least 65

percent of the scheduled air carriers serving the airport and by scheduled and nonscheduled air carriers

whose aircraft landing at the airport during the preceding calendar year, had a total landed weight during

the preceding calendar year of at least 65 percent of

the total landed weight of all aircraft landing at the

airport during such year; or

(ii) in the case of a nonprimary airport, by the

Secretary after the airport has consulted with at least

65 percent of the owners of aircraft based at that airport, as determined by the Secretary.

(B) OBJECTION TO EXEMPTION.—An air carrier shall be

deemed to have approved a sponsor’s application for an exemption under subparagraph (A) unless the air carrier has

submitted an objection, in writing, to the sponsor within

60 days of the filing of the sponsor’s application with the

Secretary, or within 60 days of the service of the application upon that air carrier, whichever is later.

(C) LANDED WEIGHT DEFINED.—In this paragraph, the

term ‘‘landed weight’’ means the weight of aircraft transporting passengers or cargo, or both, in intrastate, interstate, and foreign air transportation, as the Secretary determines under regulations the Secretary prescribes.

(2) REPAYMENT REQUIREMENTS.—The Secretary may grant

an exemption to a sponsor from the provisions of sections

47107 and 47152 of this title (and any other law, regulation,

or grant assurance) to the extent necessary to waive any obligation of the sponsor to repay to the Federal Government any

grants, or to return to the Federal Government any property,

received by the airport under this title, the Airport and Airway

Improvement Act of 1982, or any other law.

(3) COMPENSATION FROM AIRPORT OPERATIONS.—The Secretary may grant an exemption to a purchaser or lessee from

the provisions of sections 47107(b) and 47133 of this title (and

any other law, regulation, or grant assurance) to the extent

necessary to permit the purchaser or lessee to earn compensation from the operations of the airport.

(c) TERMS AND CONDITIONS.—The Secretary may approve an

application under subsection (b) only if the Secretary finds that the

sale or lease agreement includes provisions satisfactory to the Secretary to ensure the following:

(1) The airport will continue to be available for public use

on reasonable terms and conditions and without unjust dis- crimination.

(2) The operation of the airport will not be interrupted in

the event that the purchaser or lessee becomes insolvent or

seeks or becomes subject to any State or Federal bankruptcy,

reorganization, insolvency, liquidation, or dissolution proceeding or any petition or similar law seeking the dissolution

or reorganization of the purchaser or lessee or the appointment

of a receiver, trustee, custodian, or liquidator for the purchaser

or lessee or a substantial part of the purchaser or lessee’s property, assets, or business.

(3) The purchaser or lessee will maintain, improve, and

modernize the facilities of the airport through capital investments and will submit to the Secretary a plan for carrying out

such maintenance, improvements, and modernization.

(4) Every fee of the airport imposed on an air carrier on

the day before the date of the lease of the airport will not increase faster than the rate of inflation unless a higher amount

is approved—

(A) by at least 65 percent of the air carriers serving

the airport; and

(B) by air carriers whose aircraft landing at the air- port during the preceding calendar year had a total landed

weight during the preceding calendar year of at least 65

percent of the total landed weight of all aircraft landing at

the airport during such year.

(5) The percentage increase in fees imposed on general

aviation aircraft at the airport will not exceed the percentage

increase in fees imposed on air carriers at the airport.
214

(6) Safety and security at the airport will be maintained

at the highest possible levels. (7) The adverse effects of noise from operations at the air- port will be mitigated to the same extent as at a public airport.

(8) Any adverse effects on the environment from airport

operations will be mitigated to the same extent as at a public

airport.

(9) Any collective bargaining agreement that covers employees of the airport and is in effect on the date of the sale

or lease of the airport will not be abrogated by the sale or

lease.

(d) PARTICIPATION OF CERTAIN AIRPORTS.—

(1) GENERAL AVIATION AIRPORTS.—If the Secretary approves under subsection (b) applications with respect to 5 airports, one of the airports must be a general aviation airport.

(2) LARGE HUB AIRPORTS.—The Secretary may not approve

under subsection (b) more than 1 application submitted by an

airport that had 1 percent or more of the total passenger

boardings (as defined in section 47102) in the United States in

the preceding calendar year.

(e) REQUIRED FINDING THAT APPROVAL WILL NOT RESULT IN

UNFAIR METHODS OF COMPETITION.—The Secretary may approve

an application under subsection (b) only if the Secretary finds that

the approval will not result in unfair and deceptive practices or unfair methods of competition. (f) INTERESTS OF GENERAL AVIATION USERS.—In approving an

application of an airport under this section, the Secretary shall ensure that the interests of general aviation users of the airport are

not adversely affected.

(g) PASSENGER FACILITY FEES; APPORTIONMENTS; SERVICE

CHARGES.—Notwithstanding that the sponsor of an airport receiving an exemption under subsection (b) is not a public agency, the

sponsor shall not be prohibited from—

(1) imposing a passenger facility fee under section 40117

of this title;

(2) receiving apportionments under section 47114 of this

title; or

(3) collecting reasonable rental charges, landing fees, and

other service charges from aircraft operators under section

40116(e)(2) of this title.

(h) EFFECTIVENESS OF EXEMPTIONS.—An exemption granted

under subsection (b) shall continue in effect only so long as the facilities sold or leased continue to be used for airport purposes. (i) REVOCATION OF EXEMPTIONS.—The Secretary may revoke an

exemption issued to a purchaser or lessee of an airport under sub- section (b)(3) if, after providing the purchaser or lessee with notice

and an opportunity to be heard, the Secretary determines that the

purchaser or lessee has knowingly violated any of the terms speci- fied in subsection (c) for the sale or lease of the airport.

(j) NONAPPLICATION OF PROVISIONS TO AIRPORTS OWNED BY

PUBLIC AGENCIES.—The provisions of this section requiring the approval of air carriers in determinations concerning the use of revenues, and imposition of fees, at an airport shall not be extended so

as to apply to any airport owned by a public agency that is not participating in the program established by this section.

(k) AUDITS.—The Secretary may conduct periodic audits of the

financial records and operations of an airport receiving an exemption under this section.

(l) REPORT.—Not later than 2 years after the date of the initial

approval of an application under 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 on implementation of the program under this section.

(m) GENERAL AVIATION AIRPORT DEFINED.—In this section, the

term ‘‘general aviation airport’’ means an airport that is not a commercial service airport.

§ 47135. Innovative financing techniques

(a) IN GENERAL.—The Secretary of Transportation may approve, after the date of enactment of the Vision 100—Century of

Aviation Reauthorization Act, applications for not more than 20

airport development projects for which grants received under this

subchapter may be used for innovative financing techniques. Such

projects shall be located at airports that each year have less than

.25 percent of the total number of passenger boardings each year

at all commercial service airports in the most recent calendar year

for which data is available.

(b) PURPOSE.—The purpose of grants made under this section

shall be to provide information on the benefits and difficulties of

using innovative financing techniques for airport development

projects.

(c) LIMITATIONS.—

(1) NO GUARANTEES.—In no case shall the implementation

of an innovative financing technique under this section be used

in a manner giving rise to a direct or indirect guarantee of any

airport debt instrument by the United States Government.

(2) TYPES OF TECHNIQUES.—In this section, innovative financing techniques are limited to—

(A) payment of interest;

(B) commercial bond insurance and other credit enhancement associated with airport bonds for eligible air- port development;

(C) flexible non-Federal matching requirements; and

(D) use of funds apportioned under section 47114 for

the payment of principal and interest of terminal development for costs incurred before the date of the enactment

of this section.
215

§ 47136. Inherently low-emission airport vehicle pilot

program

(a) IN GENERAL.—The Secretary of Transportation shall carry

out a pilot program at not more than 10 public-use airports under

which the sponsors of such airports may use funds made available

under section 48103 for use at such airports to carry out inherently

low-emission vehicle activities. Notwithstanding any other provision of this subchapter, inherently low-emission vehicle activities

shall for purposes of the pilot program be treated as eligible for assistance under this subchapter.

(b) LOCATION IN AIR QUALITY NONATTAINMENT AREAS.—

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

participation in the pilot program only if the airport is located

in an air quality nonattainment area (as defined in section

171(2) of the Clean Air Act (42 U.S.C. 7501(2)).

(2) SHORTAGE OF CANDIDATES.—If the Secretary receives

an insufficient number of applications from public-use airports

located in such areas, then the Secretary may consider applications from public-use airports that are not located in such

areas.

(c) SELECTION CRITERIA.—In selecting from among applicants

for participation in the pilot program, the Secretary shall give priority consideration to applicants that will achieve the greatest air

quality benefits measured by the amount of emissions reduced per

dollar of funds expended under the pilot program.

(d) UNITED STATES GOVERNMENT’S SHARE.—Notwithstanding

any other provision of this subchapter, the United States Government’s share of the costs of a project carried out under the pilot

program shall be 50 percent.

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

(f) TECHNICAL ASSISTANCE.—

(1) IN GENERAL.—The sponsor of a public-use airport carrying out inherently low-emission vehicle activities under the

pilot program may use not more than 10 percent of the

amounts made available for expenditure at the airport in a fiscal year under the pilot program to receive technical assistance

in carrying out such activities.

(2) ELIGIBLE CONSORTIUM.—To the maximum extent practicable, participants in the pilot program shall use an eligible

consortium (as defined in section 5506 of this title) in the region of the airport to receive technical assistance described in

paragraph (1).

(g) MATERIALS IDENTIFYING BEST PRACTICES.—The Administrator may develop and make available materials identifying best

practices for carrying out low-emission vehicle activities based on

the projects carried out under the pilot program and other sources.

(h) REPORT TO CONGRESS.—Not later than 18 months after the

date of the enactment of this section, the Secretary shall transmit

to the Committee on Transportation and Infrastructure of the

House of Representatives and the Committee on Commerce,

Science, and Transportation of the Senate a report containing—

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

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

(3) a description of the mechanisms used by the Secretary

to ensure that the information and know-how gained by par- ticipants in the pilot program is transferred among the partici- pants and to other interested parties, including other public- use airports.

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

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

means—

(1) the construction of infrastructure or modifications at

public-use airports to enable the delivery of fuel and services

necessary for the use of vehicles that are certified as inherently

low-emission vehicles under title 40 of the Code of Federal

Regulations and that—

(A) operate exclusively on compressed natural gas, liq- uefied natural gas, liquefied petroleum gas, electricity, hy- drogen, or a blend at least 85 percent of which is meth- anol;

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

of such title; and

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

(2) the construction of infrastructure or modifications at

public-use airports to enable the delivery of fuel and services

necessary for the use of nonroad vehicles that—

(A) operate exclusively on compressed natural gas, liquefied natural gas, liquefied petroleum gas, electricity, hydrogen, or a blend at least 85 percent of which is methanol;

(B) meet or exceed the standards set forth in section

86.1708–99 of such title or the standards set forth in

sec- tion 89.112(a) of such title, and are in compliance

with the requirements of section 89.112(b) of such title;

and

(C) are located or primarily used at public-use air- ports;

(3) the payment of that portion of the cost of acquiring vehicles described in this subsection that exceeds the cost of ac- quiring other vehicles or engines that would be used for the

same purpose; or

(4) the acquisition of technological capital equipment to en- able the delivery of fuel and services necessary for the use of

vehicles described in paragraph (1).
216

§ 47137. Airport security program

(a) GENERAL AUTHORITY.—To improve security at public airports in the United States, the Secretary of Transportation shall

carry out not less than one project to test and evaluate innovative

aviation security systems and related technology.

(b) PRIORITY.—In carrying out this section, the Secretary shall

give the highest priority to a request from an eligible sponsor for

a grant to undertake a project that—

(1) evaluates and tests the benefits of innovative aviation

security systems or related technology, including explosives detection systems, for the purpose of improving aviation and aircraft physical security, access control, and passenger and baggage screening; and

(2) provides testing and evaluation of airport security systems and technology in an operational, testbed environment.

(c) MATCHING SHARE.—Notwithstanding section 47109, the

United States Government’s share of allowable project costs for a

project under this section shall be 100 percent.

(d) TERMS AND CONDITIONS.—The Secretary may establish

such terms and conditions as the Secretary determines appropriate

for carrying out a project under this section, including terms and

conditions relating to the form and content of a proposal for a

project, project assurances, and schedule of payments.

(e) ADMINISTRATION.—The Secretary, in cooperation with the

Secretary of Homeland Security, shall administer the program authorized by this section.

(f) ELIGIBLE SPONSOR DEFINED.—In this section, the term ‘‘eligible sponsor’’ means a nonprofit corporation composed of a consortium of public and private persons, including a sponsor of a primary airport, with the necessary engineering and technical expertise to successfully conduct the testing and evaluation of airport

and aircraft related security systems.

(g) AUTHORIZATION OF APPROPRIATIONS.—Of the amounts made

available to the Secretary under section 47115 in a fiscal year, the

Secretary shall make available not less than $5,000,000 for the

purpose of carrying out this section.

§ 47138. Pilot program for purchase of airport development

rights

(a) IN GENERAL.—The Secretary of Transportation shall establish a pilot program to support the purchase, by a State or political

subdivision of a State, of development rights associated with, or directly affecting the use of, privately owned public use airports located in that State. Under the program, the Secretary may make

a grant to a State or political subdivision of a State from funds apportioned under section 47114 for the purchase of such rights.

(b) GRANT REQUIREMENTS.—

(1) IN GENERAL.—The Secretary may not make a grant

under subsection (a) unless the grant is made—

(A) to enable the State or political subdivision to purchase development rights in order to ensure that the air- port property will continue to be available for use as a

public airport; and

(B) subject to a requirement that the State or political

subdivision acquire an easement or other appropriate covenant requiring that the airport shall remain a public use

airport in perpetuity.

(2) MATCHING REQUIREMENT.—The amount of a grant

under the program may not exceed 90 percent of the costs of

acquiring the development rights.

(c) GRANT STANDARDS.—The Secretary shall prescribe standards for grants under subsection (a), including—

(1) grant application and approval procedures; and

(2) requirements for the content of the instrument record- ing the purchase of the development rights.

(d) RELEASE OF PURCHASED RIGHTS AND COVENANT.—Any development rights purchased under the program shall remain the

property of the State or political subdivision unless the Secretary

approves the transfer or disposal of the development rights after

making a determination that the transfer or disposal of that right

is in the public interest.

(e) LIMITATION.—The Secretary may not make a grant under

the pilot program for the purchase of development rights at more

than 10 airports.

§ 47139. Emission credits for air quality projects

(a) IN GENERAL.—The Administrator of the Environmental

Protection Agency, in consultation with the Secretary of Transportation, shall issue guidance on how to ensure that airport sponsors

receive appropriate emission reduction credits for carrying out

projects described in sections 40117(a)(3)(G), 47102(3)(F),

47102(3)(K), and 47102(3)(L). Such guidance shall include, at a

minimum, the following conditions:

(1) The provision of credits is consistent with the Clean Air

Act (42 U.S.C. 7402 et seq.).

(2) Credits generated by the emissions reductions are kept

by the airport sponsor and may only be used for purposes of

any current or future general conformity determination under

the Clean Air Act or as offsets under the Environmental Protection Agency’s new source review program for projects on the

airport or associated with the airport.

(3) Credits are calculated and provided to airports on a

consistent basis nationwide.

(4) Credits are provided to airport sponsors in a timely

manner.

(5) The establishment of a method to assure the Secretary

that, for any specific airport project for which funding is being

requested, the appropriate credits will be granted.
217

(b) ASSURANCE OF RECEIPT OF CREDITS.—As a condition for

making a grant for a project described in section 47102(3)(F),

47102(3)(K), 47102(3)(L), or 47140 or as a condition for granting

approval to collect or use a passenger facility fee for a project described in section 40117(a)(3)(G), 47103(3)(F), 47102(3)(K),

47102(3)(L), or 47140, the Secretary must receive assurance from

the State in which the project is located, or from the Administrator

of the Environmental Protection Agency where there is a Federal

implementation plan, that the airport sponsor will receive appropriate emission credits in accordance with the conditions of this

section.

(c) PREVIOUSLY APPROVED PROJECTS.—The Administrator of

the Environmental Protection Agency, in consultation with the Secretary, shall determine how to provide appropriate emissions credits to airport projects previously approved under section 47136 consistent with the guidance and conditions specified in subsection (a).

(d) STATE AUTHORITY UNDER CAA.—Nothing in this section

shall be construed as overriding existing State law or regulation

pursuant to section 116 of the Clean Air Act (42 U.S.C. 7416).

§ 47140. Airport ground support equipment emissions retrofit pilot program

(a) IN GENERAL.—The Secretary of Transportation shall carry

out a pilot program at not more than 10 commercial service airports under which the sponsors of such airports may use an

amount made available under section 48103 to retrofit existing eligible airport ground support equipment that burns conventional

fuels to achieve lower emissions utilizing emission control technologies certified or verified by the Environmental Protection Agency.

(b) LOCATION IN AIR QUALITY NONATTAINMENT OR MAINTENANCE AREAS.—A commercial service airport shall be eligible for

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

an air quality nonattainment area (as defined in section 171(2) of

the Clean Air Act (42 U.S.C. 7501(2))) or a maintenance area referred to in section 175A of such Act (42 U.S.C. 7505a).

(c) SELECTION CRITERIA.—In selecting from among applicants

for participation in the pilot program, the Secretary shall give priority consideration to applicants that will achieve the greatest air

quality benefits measured by the amount of emissions reduced per

dollar of funds expended under the pilot program.

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

airport.

(e) GUIDELINES.—The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish

guidelines regarding the types of retrofit projects eligible under the

pilot program by considering remaining equipment useful life,

amounts of emission reduction in relation to the cost of projects,

and other factors necessary to carry out this section. The Secretary

may give priority to ground support equipment owned by the air- port and used for airport purposes.

(f) ELIGIBLE EQUIPMENT DEFINED.—In this section, the term

‘‘eligible equipment’’ means ground service or maintenance equipment that is located at the airport, is used to support aeronautical

and related activities at the airport, and will remain in operation

at the airport for the life or useful life of the equipment, whichever

is earlier.

§ 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 compat- ibility program to the Secretary under section 47504 or has not

updated such program within the preceding 10 years; and

(2) the land use plan or project meets the requirements of

this section.

(b) ELIGIBILITY.—In order to receive a grant under this section, a State or unit of local government must— (1) have the authority to plan and adopt land use control

measures, including zoning, in the planning area in and

around a large or medium hub airport;

(2) enter into an agreement with the airport owner or op- erator 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
218

47504(a)(2) that are within the authority of the State or

unit of local government to implement;

(C) uses noise contours provided by the airport operator that are consistent with the airport operation and

planning, including any noise abatement measures adopted by the airport operator as part of its own noise mitigation efforts;

(D) does not duplicate, and is not inconsistent with,

the airport operator’s noise compatibility measures for the

same area; and

(E) has been approved jointly by the airport owner or

operator and the State or unit of local government; and

(2) such other assurances as the Secretary determines to

be necessary to carry out this section.

(d) GUIDELINES.—The Secretary shall establish guidelines to

administer this section in accordance with the purposes and conditions described in this section. The Secretary may require a State

or unit of local government to which a grant may be made under

this section to provide progress reports and other information as

the Secretary determines to be necessary to carry out this section.

(e) ELIGIBLE PROJECTS.—The Secretary may approve a grant

under this section to a State or unit of local government for a

project resulting from a land use compatibility plan only if the Secretary is satisfied that the project is consistent with the guidelines

established by the Secretary under this section, the State or unit

of local government has provided the assurances required by this

section, the State or unit of local government has implemented (or

has made provision to implement) those elements of the plan that

are not eligible for Federal financial assistance, and that the

project is not inconsistent with applicable Federal Aviation Administration standards.

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

30, 2007.

§ 47142. Design-build contracting

(a) IN GENERAL.—The Administrator of the Federal Aviation

Administration may approve an application of an airport sponsor

under this section to authorize the airport sponsor to award a design-build contract using a selection process permitted under applicable State or local law if—

(1) the Administrator approves the application using criteria established by the Administrator;

(2) the design-build contract is in a form that is approved

by the Administrator;

(3) the Administrator is satisfied that the contract will be

executed pursuant to competitive procedures and contains a

schematic design adequate for the Administrator to approve

the grant;

(4) use of a design-build contract will be cost effective and

expedite the project;

(5) the Administrator is satisfied that there will be no conflict of interest; and

(6) the Administrator is satisfied that the selection process

will be as open, fair, and objective as the competitive bid system and that at least 3 or more bids will be submitted for each

project under the selection process.

(b) REIMBURSEMENT OF COSTS.—The Administrator may reimburse an airport sponsor for design and construction costs incurred

before a grant is made pursuant to this section if the project is approved by the Administrator in advance and is carried out in accordance with all administrative and statutory requirements that

would have been applicable under this chapter if the project were

carried out after a grant agreement had been executed.

(c) DESIGN-BUILD CONTRACT DEFINED.—In this section, the

term ‘‘design-build contract’’ means an agreement that provides for

both design and construction of a project by a contractor.

SUBCHAPTER II—SURPLUS PROPERTY FOR PUBLIC

AIRPORTS

§ 47151. Authority to transfer an interest in surplus property

(a) GENERAL AUTHORITY.—Subject to sections 47152 and 47153

of this title, a department, agency, or instrumentality of the executive branch of the United States Government or a wholly owned

Government corporation may convey to a State, political subdivision of a State, or tax-supported organization any interest in surplus property—

(1) that the Secretary of Transportation decides is—

(A) desirable for developing, improving, operating, or

maintaining a public airport (as defined in section 47102

of this title);

(B) reasonably necessary to fulfill the immediate and

foreseeable future requirements for developing, improving, operating, or maintaining a public airport; or

(C) needed for developing sources of revenue from non- aviation businesses at a public airport; and

(2) if the Administrator of General Services approves the

conveyance and decides the interest is not best suited for in- dustrial use.

(b) ENSURING COMPLIANCE.—Only the Secretary may ensure

compliance with an instrument conveying an interest in surplus

property under this subchapter. The Secretary may amend the instrument to correct the instrument or to make the conveyance com- ply with law.

(c) DISPOSING OF INTERESTS NOT CONVEYED UNDER THIS SUBCHAPTER.—An interest in surplus property that could be used at a

public airport but that is not conveyed under this subchapter shall

be disposed of under other applicable law.
219

(d) WAIVER OF CONDITION.—Before the Secretary may waive

any condition imposed on an interest in surplus property conveyed

under subsection (a) that such interest be used for an aeronautical

purpose, the Secretary must provide notice to the public not less

than 30 days before waiving such condition.

(e) REQUESTS BY PUBLIC AGENCIES.—Except with respect to a

request made by another department, agency, or instrumentality of

the executive branch of the United States Government, such a department, agency, or instrumentality shall give priority consideration to a request made by a public agency (as defined in section

47102) for surplus property described in subsection (a) (other than

real property that is subject to section 2687 of title 10, section 201

of the Defense Authorization Amendments and Base Closure and

Realignment Act (10 U.S.C. 2687 note), or section 2905 of the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 2687

note)) for use at a public airport.

§ 47152. Terms of conveyances

Except as provided in section 47153 of this title, the following

terms apply to a conveyance of an interest in surplus property

under this subchapter:

(1) A State, political subdivision of a State, or tax-supported organization receiving the interest may use, lease, salvage, or dispose of the interest for other than airport purposes

only after the Secretary of Transportation gives written consent that the interest can be used, leased, salvaged, or disposed of without materially and adversely affecting the development, improvement, operation, or maintenance of the airport

at which the property is located.

(2) The interest shall be used and maintained for public

use and benefit without unreasonable discrimination.

(3) A right may not be vested in a person, excluding others

in the same class from using the airport at which the property

is located—

(A) to conduct an aeronautical activity requiring the

operation of aircraft; or

(B) to engage in selling or supplying aircraft, aircraft

accessories, equipment, or supplies (except gasoline and

oil), or aircraft services necessary to operate aircraft (including maintaining and repairing aircraft, aircraft engines, propellers, and appliances).

(4) The State, political subdivision, or tax-supported organization accepting the interest shall clear and protect the aerial approaches to the airport by mitigating existing, and pre- venting future, airport hazards.

(5) During a national emergency declared by the President

or Congress, the United States Government is entitled to use,

control, or possess, without charge, any part of the public airport at which the property is located. However, the Govern- ment shall—

(A) pay the entire cost of maintaining the part of the

airport it exclusively uses, controls, or possesses during

the emergency;

(B) contribute a reasonable share, consistent with the

Government’s use, of the cost of maintaining the property

it uses nonexclusively, or over which the Government has

nonexclusive control or possession, during the emergency;

and

(C) pay a fair rental for use, control, or possession of

improvements to the airport made without Government assistance.

(6) The Government is entitled to the nonexclusive use,

without charge, of the landing area of an airport at which the

property is located. The Secretary may limit the use of the

landing area if necessary to prevent unreasonable interference

with use by other authorized aircraft. However, the Government shall—

(A) contribute a reasonable share, consistent with the

Government’s use, of the cost of maintaining and operating

the landing area; and

(B) pay for damages caused by its use of the landing

area if its use of the landing area is substantial.

(7) The State, political subdivision, or tax-supported organization accepting the interest shall release the Government

from all liability for damages arising under an agreement that

provides for Government use of any part of an airport owned,

controlled, or operated by the State, political subdivision, or

tax-supported organization on which, adjacent to which, or in

connection with which, the property is located.

(8) When a term under this section is not satisfied, any

part of the interest in the property reverts to the Government,

at the option of the Government, as the property then exists.

§ 47153. Waiving and adding terms

(a) GENERAL AUTHORITY.—(1) The Secretary of Transportation

may waive, without charge, a term of a conveyance of an interest

in property under this subchapter if the Secretary decides that—

(A) the property no longer serves the purpose for which it

was conveyed; or

(B) the waiver will not prevent carrying out the purpose

for which the conveyance was made and is necessary to advance the civil aviation interests of the United States.

(2) The Secretary of Transportation shall waive a term under

paragraph (1) of this subsection on terms the Secretary considers

necessary to protect or advance the civil aviation interests of the

United States.

(b) WAIVERS AND INCLUSION OF ADDITIONAL TERMS ON REQUEST.—On request of the Secretary of Transportation or the Secretary of a military department, a department, agency, or instrumentality of the executive branch of the United States Government
220

or a wholly owned Government corporation may waive a term required by section 47152 of this title or add another term if the ap- propriate Secretary decides it is necessary to protect or advance the

interests of the United States in civil aviation or for national defense.

(c) PUBLIC NOTICE BEFORE WAIVER.—Notwithstanding subsections (a) and (b), before the Secretary may waive any term imposed under this section that an interest in land be used for an

aeronautical purpose, the Secretary must provide notice to the public not less than 30 days before waiving such term.

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 ENVIRONMENTAL REVIEW PROCESS.—

(1) AIRPORT CAPACITY ENHANCEMENT PROJECTS AT CONGESTED AIRPORTS.—An airport capacity enhancement project at

a congested airport shall be subject to the coordinated and expedited environmental review process requirements set forth in

this section.

(2) AVIATION SAFETY AND AVIATION SECURITY PROJECTS.—

(A) IN GENERAL.—The Administrator of the Federal

Aviation Administration may designate an aviation safety

project or aviation security project for priority environ- mental 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 Adminis- trator 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 environ- mental review under existing emergency procedures

under the National Environmental Policy Act of 1969

(42 U.S.C. 4321 et seq.);

(iii) the need for cooperation and concurrent re- views by other Federal or State agencies;

(iv) the prospect for undue delay if the project is

not designated for priority review; and

(v) for aviation security projects, the views of the

Department of Homeland Security.

(c) HIGH PRIORITY OF AND AGENCY PARTICIPATION IN COORDINATED REVIEWS.—

(1) HIGH PRIORITY FOR ENVIRONMENTAL REVIEWS.—Each

Federal agency with jurisdiction over an environmental review,

analysis, opinion, permit, license, or approval shall accord any

such review, analysis, opinion, permit, license, or approval involving an airport capacity enhancement project at a congested

airport or a project designated under subsection (b)(2) the highest possible priority and conduct the review, analysis, opinion,

permit, license, or approval expeditiously.

(2) AGENCY PARTICIPATION.—Each Federal agency described in subsection (d) shall formulate and implement administrative, policy, and procedural mechanisms to enable the

agency to participate in the coordinated environmental review

process under this section and to ensure completion of environ- mental 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 af-
221

fected by the project or may be required by law to conduct an environmental-related review or analysis of the project or determine

whether to issue an environmental-related permit, license, or approval for the project, be subject to the process.

(f) MEMORANDUM OF UNDERSTANDING.—The coordinated review process developed under this section may be incorporated into

a memorandum of understanding for a project between the Secretary and the heads of other Federal and State agencies identified

under subsection (d) with respect to the project and, if applicable,

the airport sponsor.

(g) USE OF INTERAGENCY ENVIRONMENTAL IMPACT STATEMENT

TEAMS.—

(1) IN GENERAL.—The Secretary may utilize an interagency

environmental impact statement team to expedite and coordinate the coordinated environmental review process for a

project under this section. When utilizing an interagency environmental impact statement team, the Secretary shall invite

Federal, State and Tribal agencies with jurisdiction by law,

and may invite such agencies with special expertise, to participate on an interagency environmental impact statement team.

(2) RESPONSIBILITY OF INTERAGENCY ENVIRONMENTAL IMPACT STATEMENT TEAM.—Under a coordinated environmental

review process being implemented under this section, the interagency environmental impact statement team shall assist the

Federal Aviation Administration in the preparation of the environmental impact statement. To facilitate timely and efficient

environmental review, the team shall agree on agency or Tribal points of contact, protocols for communication among agencies, and deadlines for necessary actions by each individual

agency (including the review of environmental analyses, the

conduct of required consultation and coordination, and the

issuance of environmental opinions, licenses, permits, and approvals). The members of the team may formalize their agreement in a written memorandum.

(h) LEAD AGENCY RESPONSIBILITY.—The Federal Aviation Ad- ministration 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 deter- mination, the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Transportation and Infrastructure of the House of Representatives, the Council on

Environmental Quality, and the agency or sponsor involved

about the failure to meet the deadline.

(2) AGENCY REPORT.—Not later than 30 days after date of

receipt of a notice under paragraph (1), the agency or sponsor

involved shall submit a report to the Secretary, the Committee

on Transportation and Infrastructure of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and the Council on Environmental

Quality explaining why the agency or sponsor did not meet the

deadline and what actions it intends to take to complete or

issue the required review, analysis, opinion, permit, license, or

approval.

(j) PURPOSE AND NEED.—For any environmental review, analysis, opinion, permit, license, or approval that must be issued or

made by a Federal or State agency that is participating in a coordinated review process under this section and that requires an analysis of purpose and need for the project, the agency, notwithstanding any other provision of law, shall be bound by the project

purpose and need as defined by the Secretary.

(k) ALTERNATIVES ANALYSIS.—The Secretary shall determine

the reasonable alternatives to an airport capacity enhancement

project at a congested airport or a project designated under subsection (b)(2). Any other Federal agency, or State agency that is

participating in a coordinated review process under this section

with respect to the project shall consider only those alternatives to

the project that the Secretary has determined are reasonable.

(l) SOLICITATION AND CONSIDERATION OF COMMENTS.—In applying subsections (j) and (k), the Secretary shall solicit and consider comments from interested persons and governmental entities

in accordance with the National Environmental Policy Act of 1969

(42 U.S.C. 4371 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.

§ 47172. Air traffic procedures for airport capacity enhancement projects at congested airports

(a) IN GENERAL.—The Administrator of the Federal Aviation

Administration may consider prescribing flight procedures to avoid

or minimize potentially significant adverse noise impacts of an airport capacity enhancement project at a congested airport that involves the construction of new runways or the reconfiguration of
222

existing runways during the environmental planning process for

the project. If the Administrator determines that noise mitigation

flight procedures are consistent with safe and efficient use of the

navigable airspace, the Administrator may commit, at the request

of the airport sponsor and in a manner consistent with applicable

Federal law, to prescribing such procedures in any record of decision approving the project.

(b) MODIFICATION.—Notwithstanding any commitment by the

Administrator under subsection (a), the Administrator may initiate

changes to such procedures if necessary to maintain safety and efficiency in light of new information or changed circumstances.

§ 47173. Airport funding of FAA staff

(a) ACCEPTANCE OF SPONSOR-PROVIDED FUNDS.—Notwithstanding any other provision of law, the Administrator of the Fed- eral Aviation Administration may accept funds from an airport

sponsor, including funds provided to the sponsor under section

47114(c), to hire additional staff or obtain the services of consult- ants in order to facilitate the timely processing, review, and completion of environmental activities associated with an airport development project.

(b) ADMINISTRATIVE PROVISION.—Instead of payment from an

airport sponsor from funds apportioned to the sponsor under section 47114, the Administrator, with agreement of the sponsor, may

transfer funds that would otherwise be apportioned to the sponsor

under section 47114 to the account used by the Administrator for

activities described in subsection (a).

(c) RECEIPTS CREDITED AS OFFSETTING COLLECTIONS.—Notwithstanding section 3302 of title 31, any funds accepted under

this section, except funds transferred pursuant to subsection (b)—

(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.

(d) MAINTENANCE OF EFFORT.—No funds may be accepted pursuant to subsection (a), or transferred pursuant to subsection (b),

in any fiscal year in which the Federal Aviation Administration

does not allocate at least the amount it expended in fiscal year

2002 (excluding amounts accepted pursuant to section 337 of the

Department of Transportation and Related Agencies Appropria- tions Act, 2002 (115 Stat. 862)) for the activities described in subsection (a).

§ 47174. Authorization of appropriations

In addition to the amounts authorized to be appropriated

under section 106(k), there is authorized to 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), $4,200,000 for fiscal year 2004 and for

each fiscal year thereafter to facilitate the timely processing, re- view, and completion of environmental activities associated with

airport capacity enhancement projects at congested airports.

§ 47175. Definitions

In this subchapter, the following definitions apply:

(1) AIRPORT SPONSOR.—The term ‘‘airport sponsor’’ has the

meaning given the term ‘‘sponsor’’ under section 47102.

(2) CONGESTED AIRPORT.—The term ‘‘congested airport’’

means an airport that accounted for at least 1 percent of all

delayed aircraft operations in the United States in the most recent year for which such data is available and an airport listed

in table 1 of the Federal Aviation Administration’s Airport Ca- pacity Benchmark Report 2001.

(3) AIRPORT CAPACITY ENHANCEMENT PROJECT.—The term

‘‘airport capacity enhancement project’’ means— (A) a project for construction or extension of a runway, including any land acquisition, taxiway, or safety area as- sociated with the runway or runway extension; and

(B) such other airport development projects as the Sec- retary may designate as facilitating a reduction in air traf- fic congestion and delays.

(4) AVIATION SAFETY PROJECT.—The term ‘‘aviation safety

project’’ means an aviation project that—

(A) has as its primary purpose reducing the risk of in- jury to persons or damage to aircraft and property, as de- termined by the Administrator; and

(B)(i) is needed to respond to a recommendation from

the National Transportation Safety Board, as determined

by the Administrator; or

(ii) is necessary for an airport to comply with part 139

of title 14, Code of Federal Regulations (relating to airport

certification).

(5) AVIATION SECURITY PROJECT.—The term ‘‘aviation security project’’ means a security project at an airport required by

the Department of Homeland Security. (6) FEDERAL AGENCY.—The term ‘‘Federal agency’’ means a

department or agency of the United States Government.

CHAPTER 473—INTERNATIONAL AIRPORT FACILITIES

Sec. 47301. Definitions. 47302. Providing airport and airway property in foreign territories. 47303. Training foreign citizens.

47304. Transfer of airport and airway property. 47305. Administrative. 47306. Criminal penalty.

§ 47301. Definitions

In this chapter—

(1) ‘‘airport property’’ means an interest in property used
223

or useful in operating and maintaining an airport.

(2) ‘‘airway property’’ means an interest in property used

or useful in operating and maintaining a ground installation,

facility, or equipment desirable for the orderly and safe operation of air traffic, including air navigation, air traffic control,

airway communication, and meteorological facilities.

(3) ‘‘foreign territory’’ means an area—

(A) over which no government or a government of a

foreign country has sovereignty;

(B) temporarily under military occupation by the

United States Government; or

(C) occupied or administered by the Government or a

government of a foreign country under an international

agreement.

(4) ‘‘territory outside the continental United States’’ means

territory outside the 48 contiguous States and the District of

Columbia.

§ 47302. Providing airport and airway property in foreign

territories

(a) GENERAL AUTHORITY.—Subject to the concurrence of the

Secretary of State and the consideration of objectives of the International Civil Aviation Organization—

(1) the Secretary of Transportation may acquire, establish,

and construct airport property and airway property (except meteorological facilities) in foreign territory; and

(2) the Secretary of Commerce may acquire, establish, and

construct meteorological facilities in foreign territory.

(b) SPECIFIC APPROPRIATIONS REQUIRED.—Except for airport

property transferred under section 47304(b) of this title, an airport

(as defined in section 40102(a) of this title) may be acquired, estab- lished, or constructed under subsection (a) of this section only if

amounts have been appropriated specifically for the airport.

(c) ACCEPTING FOREIGN PAYMENTS.—The Secretary of Transportation or Commerce, as appropriate, may accept payment from

a government of a foreign country or international organization for

facilities or services sold or provided the government or organization under this chapter. The amount received may be credited to

the appropriation current when the expenditures are or were paid,

the appropriation current when the amount is received, or both.

§ 47303. Training foreign citizens

Subject to the concurrence of the Secretary of State, the Secretary of Transportation or Commerce, as appropriate, may train

a foreign citizen in a subject related to aeronautics and essential

to the orderly and safe operation of civil aircraft. The training may

be provided—

(1) directly by the appropriate Secretary or jointly with another department, agency, or instrumentality of the United

States Government;

(2) through a public or private agency of the United States

(including a State or municipal educational institution); or

(3) through an international organization.

§ 47304. Transfer of airport and airway property

(a) GENERAL AUTHORITY.—When requested by the government

of a foreign country or an international organization, the Secretary

of Transportation or Commerce, as appropriate, may transfer to the

government or organization airport property and airway property

operated and maintained under this chapter by the appropriate

Secretary in foreign territory. The transfer shall be on terms the

appropriate Secretary considers proper, including consideration

agreed on through negotiations with the government or organization.

(b) PROPERTY INSTALLED OR CONTROLLED BY MILITARY.—Subject to terms to which the parties agree, the Secretary of a military

department may transfer without charge to the Secretary of Transportation airport property and airway property (except meteorological facilities), and to the Secretary of Commerce meteorological fa- cilities, that the Secretary of the military department installed or

controls in territory outside the continental United States. The

transfer may be made if consistent with the needs of national de- fense and—

(1) the Secretary of the military department finds that the

property or facility is no longer required exclusively for mili- tary purposes; and

(2) the Secretary of Transportation or Commerce, as appro- priate, decides that the transfer is or may be necessary to

carry out this chapter.

(c) REPUBLIC OF PANAMA.—(1) The Secretary of Transportation

may provide, operate, and maintain facilities and services for air

navigation, airway communications, and air traffic control in the

Republic of Panama subject to—

(A) the approval of the Secretary of Defense; and

(B) each obligation assumed by the United States Govern- ment under an agreement between the Government and the

Republic of Panama. (2) The Secretary of a military department may transfer with- out charge to the Secretary of Transportation property located in

the Republic of Panama when the Secretary of Transportation de- cides that the transfer may be useful in carrying out this chapter. (3) Subsection (b) of this section (related to the Secretary of

Transportation) and section 47302(a) and (b) of this title do not

apply in carrying out this subsection. (d) RETAKING PROPERTY FOR MILITARY REQUIREMENT.—(1)

When necessary for a military requirement, the Secretary of a military department immediately may retake property (with any improvements to it) transferred by the Secretary under subsection (b)

or (c) of this section. The Secretary shall pay reasonable compensa-
224

tion to each person (or its successor in interest) that made an improvement to the property that was not made at the expense of the

Government. The Secretary or a delegate of the Secretary shall decide on the amount of compensation.

(2) On the recommendation of the Secretary of Transportation

or Commerce, as appropriate, the Secretary of a military department may decide not to act under paragraph (1) of this subsection.

§ 47305. Administrative

(a) GENERAL AUTHORITY.—The Secretary of Transportation

shall consolidate, operate, protect, maintain, and improve airport

property and airway property (except meteorological facilities), and

the Secretary of Commerce may consolidate, operate, protect, maintain, and improve meteorological facilities, that the appropriate

Secretary has acquired and that are located in territory outside the

continental United States. In carrying out this section, the appropriate Secretary may—

(1) adapt the property or facility to the needs of civil aeronautics;

(2) lease the property or facility for not more than 20

years;

(3) make a contract, or provide directly, for facilities and

services;

(4) make reasonable charges for aeronautical services; and

(5) acquire an interest in property.

(b) CREDITING APPROPRIATIONS.—Money received from the direct sale or charge that the Secretary of Transportation or Commerce, as appropriate, decides is equivalent to the cost of facilities

and services sold or provided under subsection (a)(3) and (4) of this

section is credited to the appropriation from which the cost was

paid. The balance shall be deposited in the Treasury as miscellaneous receipts.

(c) USING OTHER GOVERNMENT FACILITIES AND SERVICES.—To

carry out this chapter and to use personnel and facilities of the

United States Government most advantageously and without unnecessary duplication, the Secretary of Transportation or Commerce, as appropriate, shall request, when practicable, to use a facility or service of an appropriate department, agency, or instrumentality of the Government on a reimbursable basis. A department, agency, or instrumentality receiving a request under this

section may provide the facility or service. (d) ADVERTISING NOT REQUIRED.—Section 3709 of the Revised

Statutes (41 U.S.C. 5) does not apply to a lease or contract made

by the Secretary of Transportation or Commerce under this chapter.

§ 47306. Criminal penalty

A person that knowingly and willfully violates a regulation

prescribed by the Secretary of Transportation to carry out this

chapter shall be fined under title 18, imprisoned for not more than

6 months, or both.

CHAPTER 475—NOISE

Sec.

SUBCHAPTER I—NOISE ABATEMENT

47501. Definitions

47502. Noise measurement and exposure systems and identifying land use compatible with noise exposure.

47503. Noise exposure maps.

47504. Noise compatibility programs.

47505. Airport noise compatibility planning grants. 47506. Limitations on recovering damages for noise. 47507. Nonadmissibility of noise exposure map and related information as evidence.

47508. Noise standards for air carriers and foreign air carriers providing foreign air transportation.

47509. Research program on quiet aircraft technology for propeller and rotor driv- en aircraft. 47510. Tradeoff allowance.

SUBCHAPTER II—NATIONAL AVIATION NOISE POLICY

47521. Findings. 47522. Definitions.

47523. National aviation noise policy.

47524. Airport noise and access restriction review program. 47525. Decision about airport noise and access restrictions on certain stage 2 aircraft. 47526. Limitations for noncomplying airport noise and access restrictions.

47527. Liability of the United States Government for noise damages.

47528. Prohibition on operating certain aircraft not complying with stage 3 noise

levels. 47529. Nonaddition rule.

47530. Nonapplication of sections 47528(a)–(d) and 47529 to aircraft outside the 48

contiguous States.

47531. Penalties for violating sections 47528–47530.

47532. Judicial review. 47533. Relationship to other laws.

SUBCHAPTER I—NOISE ABATEMENT

§ 47501. Definitions

In this subchapter—

(1) ‘‘airport’’ means a public-use airport as defined in section 47102 of this title.

(2) ‘‘airport operator’’ means—

(A) for an airport serving air carriers that have certificates from the Secretary of Transportation, any person

holding an airport operating certificate issued under section 44706 of this title; and

(B) for any other airport, the person operating the air- port.

§ 47502. Noise measurement and exposure systems and identifying land use compatible with noise exposure

After consultation with the Administrator of the Environ-
225

mental Protection Agency and United States Government, State,

and interstate agencies that the Secretary of Transportation con- siders appropriate, the Secretary shall by regulation—

(1) establish a single system of measuring noise that—

(A) has a highly reliable relationship between projected noise exposure and surveyed reactions of individuals

to noise; and

(B) is applied uniformly in measuring noise at airports

and the surrounding area;

(2) establish a single system for determining the exposure

of individuals to noise resulting from airport operations, including noise intensity, duration, frequency, and time of occurrence; and

(3) identify land uses normally compatible with various exposures of individuals to noise.

§ 47503. Noise exposure maps

(a) SUBMISSION AND PREPARATION.—An airport operator may

submit to the Secretary of Transportation a noise exposure map

showing the noncompatible uses in each area of the map on the

date the map is submitted, a description of estimated aircraft operations during a forecast period that is at least 5 years in the future

and how those operations will affect the map. The map shall—

(1) be prepared in consultation with public agencies and

planning authorities in the area surrounding the airport; and

(2) comply with regulations prescribed under section 47502 of

this title.

(b) REVISED MAPS.—If, in an area surrounding an airport, a

change in the operation of the airport would establish a substantial

new noncompatible use, or would significantly reduce noise over existing noncompatible uses, that is not reflected in either the existing conditions map or forecast map currently on file with the Federal Aviation Administration, the airport operator shall submit a

revised noise exposure map to the Secretary showing the new noncompatible use or noise reduction.

§ 47504. Noise compatibility programs

(a) SUBMISSIONS.—(1) An airport operator that submitted a

noise exposure map and related information under section 47503(a)

of this title may submit a noise compatibility program to the Secretary of Transportation after—

(A) consulting with public agencies and planning authorities in the area surrounding the airport, United States Government officials having local responsibility for the airport, and

air carriers using the airport; and

(B) notice and an opportunity for a public hearing.

(2) A program submitted under paragraph (1) of this subsection shall state the measures the operator has taken or proposes

to take to reduce existing noncompatible uses and prevent introducing additional noncompatible uses in the area covered by the

map. The measures may include—

(A) establishing a preferential runway system;

(B) restricting the use of the airport by a type or class of

aircraft because of the noise characteristics of the aircraft;

(C) constructing barriers and acoustical shielding and

soundproofing public buildings;

(D) using flight procedures to control the operation of aircraft to reduce exposure of individuals to noise in the area surrounding the airport; and

(E) acquiring land, air rights, easements, development

rights, and other interests to ensure that the property will be

used in ways compatible with airport operations.

(b) APPROVALS.—(1) The Secretary shall approve or disapprove

a program submitted under subsection (a) of this section (except as

the program is related to flight procedures referred to in subsection

(a)(2)(D) of this section) not later than 180 days after receiving it.

The Secretary shall approve the program (except as the program is

related to flight procedures referred to in subsection (a)(2)(D)) if the

program—

(A) does not place an unreasonable burden on interstate or

foreign commerce;

(B) is reasonably consistent with achieving the goal of reducing noncompatible uses and preventing the introduction of

additional noncompatible uses; and

(C) provides for necessary revisions because of a revised

map submitted under section 47503(b) of this title.

(2) A program (except as the program is related to flight procedures referred to in subsection (a)(2)(D) of this section) is deemed

to be approved if the Secretary does not act within the 180-day period.

(3) The Secretary shall submit any part of a program related

to flight procedures referred to in subsection (a)(2)(D) of this section to the Administrator of the Federal Aviation Administration.

The Administrator shall approve or disapprove that part of the program.

(4) The Secretary shall not approve in fiscal years 2004

through 2007 a program submitted under subsection (a) if the program requires the expenditure of funds made available under sec- tion 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 RESI-
226

DENTIAL 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 chap- ter;

(C) to an airport operator and unit of local government

referred to in paragraph (1)(A) or (1)(B) of this subsection

to carry out any part of a program developed before February 18, 1980, or before implementing regulations were

prescribed, if the Secretary decides the program is substantially consistent with reducing existing noncompatible

uses and preventing the introduction of additional noncompatible uses and the purposes of this chapter will be

furthered by promptly carrying out the program;

(D) to an airport operator and unit of local government

referred to in paragraph (1)(A) or (1)(B) of this subsection

to soundproof a building in the noise impact area sur- rounding the airport that is used primarily for educational

or medical purposes and that the Secretary decides is ad- versely affected by airport noise; and

(E) to an airport operator of a congested airport (as de- fined 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 air- port if the project is included as a commitment in a record

of decision of the Federal Aviation Administration for an

airport capacity enhancement project (as defined in section

47175) even if that airport has not met the requirements

of part 150 of title 14, Code of Federal Regulations.

(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) 1 AIRCRAFT NOISE PRIMARILY CAUSED BY MILITARY AIRCRAFT.—The Secretary may make a grant under this subsection for a project even if the purpose of the project is to

mitigate the effect of noise primarily caused by military aircraft at an airport.

(d) GOVERNMENT RELIEF FROM LIABILITY.—The Government is

not liable for damages from aviation noise because of action taken

under this section.

§ 47505. Airport noise compatibility planning grants

(a) GENERAL AUTHORITY.—The Secretary of Transportation

may make a grant to a sponsor of an airport to develop, for planning purposes, information necessary to prepare and submit—

(1) a noise exposure map and related information under

section 47503 of this title, including the cost of obtaining the

information; or

(2) a noise compatibility program under section 47504 of

this title.

(b) AVAILABILITY OF AMOUNTS AND GOVERNMENT’S SHARE OF

COSTS.—A grant under subsection (a) of this section may be made

from amounts available under section 48103 of this title. The

United States Government’s share of the grant is the percent for

which a project for airport development at an airport would be eligible under section 47109(a) and (b) of this title.
227

§ 47506. Limitations on recovering damages for noise

(a) GENERAL LIMITATIONS.—A person acquiring an interest in

property after February 18, 1980, in an area surrounding an air- port for which a noise exposure map has been submitted under sec- tion 47503 of this title and having actual or constructive knowledge

of the existence of the map may recover damages for noise attrib- utable to the airport only if, in addition to any other elements for

recovery of damages, the person shows that—

(1) after acquiring the interest, there was a significant— (A) change in the type or frequency of aircraft oper- ations at the airport;

(B) change in the airport layout;

(C) change in flight patterns; or

(D) increase in nighttime operations; and

(2) the damages resulted from the change or increase.

(b) CONSTRUCTIVE KNOWLEDGE.—Constructive knowledge of

the existence of a map under subsection (a) of this section shall be

imputed, at a minimum, to a person if—

(1) before the person acquired the interest, notice of the existence of the map was published at least 3 times in a newspaper of general circulation in the county in which the property is located; or

(2) the person is given a copy of the map when acquiring

the interest.

§ 47507. Nonadmissibility of noise exposure map and related

information as evidence

No part of a noise exposure map or related information described in section 47503 of this title that is submitted to, or prepared by, the Secretary of Transportation and no part of a list of

land uses the Secretary identifies as normally compatible with various exposures of individuals to noise may be admitted into evidence or used for any other purpose in a civil action asking for relief for noise resulting from the operation of an airport.

§ 47508. Noise standards for air carriers and foreign air car- riers providing foreign air transportation

(a) GENERAL REQUIREMENTS.—The Secretary of Transportation

shall require each air carrier and foreign air carrier providing foreign air transportation to comply with noise standards—

(1) the Secretary prescribed for new subsonic aircraft in

regulations of the Secretary in effect on January 1, 1977; or

(2) of the International Civil Aviation Organization that

are substantially compatible with standards of the Secretary

for new subsonic aircraft in regulations of the Secretary at

parts 36 and 91 of title 14, Code of Federal Regulations, prescribed between January 2, 1977, and January 1, 1982.

(b) COMPLIANCE AT PHASED RATE.—The Secretary shall require

each air carrier and foreign air carrier providing foreign air transportation to comply with the noise standards at a phased rate similar to the rate for aircraft registered in the United States.

(c) NONDISCRIMINATION.—The requirement for air carriers pro- viding foreign air transportation may not be more stringent than

the requirement for foreign air carriers.

§ 47509. Research program on quiet aircraft technology for

propeller and rotor driven aircraft

(a) ESTABLISHMENT.—The Administrator of the Federal Aviation Administration and the Administrator of the National Aero- nautics and Space Administration shall conduct a study to identify

technologies for noise reduction of propeller driven aircraft and

rotorcraft.

(b) GOAL.—The goal of the study conducted under subsection

(a) is to determine the status of research and development now underway in the area of quiet technology for propeller driven aircraft

and rotorcraft, including technology that is cost beneficial, and to

determine whether a research program to supplement existing research activities is necessary.

(c) PARTICIPATION.—In conducting the study required under

subsection (a), the Administrator of the Federal Aviation Administration and the Administrator of the National Aeronautics and

Space Administration shall encourage the participation of the Department of Defense, the Department of the Interior, the airtour

industry, the aviation industry, academia and other appropriate

groups.

(d) REPORT.—Not less than 280 days after August 23, 1994, the

Administrator of the Federal Aviation Administration and the Administrator of the National Aeronautics and Space Administration

shall transmit to Congress a report on the results of the study required under subsection (a).

(e) RESEARCH AND DEVELOPMENT PROGRAM.—If the Administrator of the Federal Aviation Administration and the Administrator of the National Aeronautics and Space Administration determine that additional research and development is necessary and

would substantially contribute to the development of quiet aircraft

technology, then the agencies shall conduct an appropriate research

program in consultation with the entities listed in subsection (c) to

develop safe, effective, and economical noise reduction technology

(including technology that can be applied to existing propeller driven aircraft and rotorcraft) that would result in aircraft that operate

at substantially reduced levels of noise to reduce the impact of such

aircraft and rotorcraft on the resources of national parks and other

areas.

§ 47510. Tradeoff allowance

Notwithstanding another law or a regulation prescribed or

order issued under that law, the tradeoff provisions contained in

appendix C of part 36 of title 14, Code of Federal Regulations,

apply in deciding whether an aircraft complies with subpart I of

part 91 of title 14.
228

SUBCHAPTER II—NATIONAL AVIATION NOISE POLICY

§ 47521. Findings

Congress finds that—

(1) aviation noise management is crucial to the continued

increase in airport capacity;

(2) community noise concerns have led to uncoordinated

and inconsistent restrictions on aviation that could impede the

national air transportation system;

(3) a noise policy must be carried out at the national level;

(4) local interest in aviation noise management shall be

considered in determining the national interest;

(5) community concerns can be alleviated through the use

of new technology aircraft and the use of revenues, including

those available from passenger facility fees, for noise management;

(6) revenues controlled by the United States Government

can help resolve noise problems and carry with them a responsibility to the national airport system;

(7) revenues derived from a passenger facility fee may be

applied to noise management and increased airport capacity;

and

(8) a precondition to the establishment and collection of a

passenger facility fee is the prescribing by the Secretary of

Transportation of a regulation establishing procedures for reviewing airport noise and access restrictions on operations of

stage 2 and stage 3 aircraft.

§ 47522. Definitions

In this subchapter—

(1) ‘‘air carrier’’, ‘‘air transportation’’, and ‘‘United States’’

have the same meanings given those terms in section 40102(a)

of this title.

(2) ‘‘stage 3 noise levels’’ means the stage 3 noise levels in

part 36 of title 14, Code of Federal Regulations, in effect on

November 5, 1990.

§ 47523. National aviation noise policy

(a) GENERAL REQUIREMENTS.—Not later than July 1, 1991, the

Secretary of Transportation shall establish by regulation a national

aviation noise policy that considers this subchapter, including the

phaseout and nonaddition of stage 2 aircraft as provided in this

subchapter and dates for carrying out that policy and reporting requirements consistent with this subchapter and law existing as of

November 5, 1990.

(b) DETAILED ECONOMIC ANALYSIS.—The policy shall be based

on a detailed economic analysis of the impact of the phaseout date

for stage 2 aircraft on competition in the airline industry,

including—

(1) the ability of air carriers to achieve capacity growth

consistent with the projected rate of growth for the airline in- dustry;

(2) the impact of competition in the airline and air cargo

industries;

(3) the impact on nonhub and small community air service;

and

(4) the impact on new entry into the airline industry.

§ 47524. Airport noise and access restriction review

program

(a) GENERAL REQUIREMENTS.—The national aviation noise policy established under section 47523 of this title shall provide for establishing by regulation a national program for reviewing airport

noise and access restrictions on the operation of stage 2 and stage

3 aircraft. The program shall provide for adequate public notice

and opportunity for comment on the restrictions.

(b) STAGE 2 AIRCRAFT.—Except as provided in subsection (d) of

this section, an airport noise or access restriction may include a restriction on the operation of stage 2 aircraft proposed after October

1, 1990, only if the airport operator publishes the proposed restric- tion and prepares and makes available for public comment at least

180 days before the effective date of the proposed restriction—

(1) an analysis of the anticipated or actual costs and benefits of the existing or proposed restriction;

(2) a description of alternative restrictions;

(3) a description of the alternative measures considered

that do not involve aircraft restrictions; and

(4) a comparison of the costs and benefits of the alternative measures to the costs and benefits of the proposed restriction.

(c) STAGE 3 AIRCRAFT.—(1) Except as provided in subsection (d)

of this section, an airport noise or access restriction on the operation of stage 3 aircraft not in effect on October 1, 1990, may be- come effective only if the restriction has been agreed to by the airport proprietor and all aircraft operators or has been submitted to

and approved by the Secretary of Transportation after an airport

or aircraft operator’s request for approval as provided by the program established under this section. Restrictions to which this

paragraph applies include—

(A) a restriction on noise levels generated on either a single event or cumulative basis;

(B) a restriction on the total number of stage 3 aircraft operations;

(C) a noise budget or noise allocation program that would

include stage 3 aircraft;

(D) a restriction on hours of operations; and

(E) any other restriction on stage 3 aircraft.

(2) Not later than 180 days after the Secretary receives an air-
229

port or aircraft operator’s request for approval of an airport noise

or access restriction on the operation of a stage 3 aircraft, the Secretary shall approve or disapprove the restriction. The Secretary

may approve the restriction only if the Secretary finds on the basis

of substantial evidence that—

(A) the restriction is reasonable, nonarbitrary, and nondiscriminatory;

(B) the restriction does not create an unreasonable burden

on interstate or foreign commerce;

(C) the restriction is not inconsistent with maintaining the

safe and efficient use of the navigable airspace;

(D) the restriction does not conflict with a law or regulation of the United States;

(E) an adequate opportunity has been provided for public

comment on the restriction; and

(F) the restriction does not create an unreasonable burden

on the national aviation system.

(3) Paragraphs (1) and (2) of this subsection do not apply if the

Administrator of the Federal Aviation Administration, before November 5, 1990, has formed a working group (outside the process

established by part 150 of title 14, Code of Federal Regulations)

with a local airport operator to examine the noise impact of air

traffic control procedure changes at the airport. However, if an

agreement on noise reductions at that airport is made between the

airport proprietor and one or more air carriers or foreign air carriers that constitute a majority of the carrier use of the airport,

this paragraph applies only to a local action to enforce the agreement.

(4) The Secretary may reevaluate an airport noise or access restriction previously agreed to or approved under this subsection on

request of an aircraft operator able to demonstrate to the satisfaction of the Secretary that there has been a change in the noise environment of the affected airport that justifies a reevaluation. The

Secretary shall establish by regulation procedures for conducting a

reevaluation. A reevaluation—

(A) shall be based on the criteria in paragraph (2) of this

subsection; and

(B) may be conducted only after 2 years after a decision

under paragraph (2) of this subsection has been made.

(d) NONAPPLICATION.—Subsections (b) and (c) of this section do

not apply to—

(1) a local action to enforce a negotiated or executed airport noise or access agreement between the airport operator

and the aircraft operators in effect on November 5, 1990;

(2) a local action to enforce a negotiated or executed air- port noise or access restriction agreed to by the airport operator and the aircraft operators before November 5, 1990;

(3) an intergovernmental agreement including an airport

noise or access restriction in effect on November 5, 1990;

(4) a subsequent amendment to an airport noise or access

agreement or restriction in effect on November 5, 1990, that

does not reduce or limit aircraft operations or affect aircraft

safety;

(5)(A) an airport noise or access restriction adopted by an

airport operator not later than October 1, 1990, and stayed as

of October 1, 1990, by a court order or as a result of litigation,

if any part of the restriction is subsequently allowed by a court

to take effect; or

(B) a new restriction imposed by an airport operator to re- place any part of a restriction described in subclause (A) of this

clause that is disallowed by a court, if the new restriction

would not prohibit aircraft operations in effect on November 5,

1990; or

(6) a local action that represents the adoption of the final

part of a program of a staged airport noise or access restriction

if the initial part of the program was adopted during 1988 and

was in effect on November 5, 1990. (e) GRANT LIMITATIONS.—Beginning on the 91st day after the

Secretary prescribes a regulation under subsection (a) of this sec- tion, a sponsor of a facility operating under an airport noise or ac- cess restriction on the operation of stage 3 aircraft that first be- came effective after October 1, 1990, is eligible for a grant under

section 47104 of this title and is eligible to impose a passenger fa- cility fee under section 40117 of this title only if the restriction has

been—

(1) agreed to by the airport proprietor and aircraft opera- tors;

(2) approved by the Secretary as required by subsection

(c)(1) of this section; or

(3) rescinded.

§ 47525. Decision about airport noise and access restrictions

on certain stage 2 aircraft

The Secretary of Transportation shall conduct a study and de- cide on the application of section 47524(a)–(d) of this title to airport

noise and access restrictions on the operation of stage 2 aircraft

with a maximum weight of not more than 75,000 pounds. In mak- ing the decision, the Secretary shall consider—

(1) noise levels produced by those aircraft relative to other

aircraft;

(2) the benefits to general aviation and the need for efficiency in the national air transportation system;

(3) the differences in the nature of operations at airports

and the areas immediately surrounding the airports;

(4) international standards and agreements on aircraft

noise; and

(5) other factors the Secretary considers necessary.

§ 47526. Limitations for noncomplying airport noise and access restrictions

Unless the Secretary of Transportation is satisfied that an air-
230

port is not imposing an airport noise or access restriction not in

compliance with this subchapter, the airport may not— (1) receive money under subchapter I of chapter 471 of this

title; or

(2) impose a passenger facility fee under section 40117 of

this title.

§ 47527. Liability of the United States Government for noise

damages

When a proposed airport noise or access restriction is disapproved under this subchapter, the United States Government

shall assume liability for noise damages only to the extent that a

taking has occurred as a direct result of the disapproval. The

United States Court of Federal Claims has exclusive jurisdiction of

a civil action under this section.

§ 47528. Prohibition on operating certain aircraft not complying with stage 3 noise levels

(a) PROHIBITION.—Except as provided in subsection (b) or (f) of

this section and section 47530 of this title, a person may operate

after December 31, 1999, a civil subsonic turbojet (for which an airworthiness certificate other than an experimental certificate has

been issued by the Administrator) with a maximum weight of more

than 75,000 pounds to or from an airport in the United States only

if the Secretary of Transportation finds that the aircraft complies

with the stage 3 noise levels.

(b) WAIVERS.—(1) If, not later than July 1, 1999, at least 85

percent of the aircraft used by an air carrier or foreign air carrier

to provide air transportation comply with the stage 3 noise levels, the carrier may apply for a waiver of subsection (a) of this section

for the remaining aircraft used by the carrier to provide air transportation. The application must be filed with the Secretary not

later than January 1, 1999, or, in the case of a foreign air carrier,

the 15th day following the date of the enactment of the Wendell H.

Ford Aviation Investment and Reform Act for the 21st Century and

must include a plan with firm orders for making all aircraft used

by the carrier to provide air transportation comply with the noise

levels not later than December 31, 2003.

(2) The Secretary may grant a waiver under this subsection if

the Secretary finds it would be in the public interest. In making

the finding, the Secretary shall consider the effect of granting the

waiver on competition in the air carrier industry and on small community air service.

(3) A waiver granted under this subsection may not permit the

operation of stage 2 aircraft in the United States after December

31, 2003.

(c) SCHEDULE FOR PHASED-IN COMPLIANCE.—The Secretary

shall establish by regulation a schedule for phased-in compliance

with subsection (a) of this section. The phase-in period shall begin

on November 5, 1990, and end before December 31, 1999. The regulations shall establish interim compliance dates. The schedule for

phased-in compliance shall be based on—

(1) a detailed economic analysis of the impact of the phaseout date for stage 2 aircraft on competition in the airline industry, including—

(A) the ability of air carriers to achieve capacity

growth consistent with the projected rate of growth for the

airline industry;

(B) the impact of competition in the airline and air

cargo industries;

(C) the impact on nonhub and small community air

service; and

(D) the impact on new entry into the airline industry;

and

(2) an analysis of the impact of aircraft noise on individuals residing near airports.

(d) ANNUAL REPORT.—Beginning with calendar year 1992—

(1) each air carrier shall submit to the Secretary an an- nual report on the progress the carrier is making toward complying with the requirements of this section and regulations

prescribed under this section; and

(2) the Secretary shall submit to Congress an annual report on the progress being made toward that compliance.

(e) HAWAIIAN OPERATIONS.—(1) In this subsection, ‘‘turnaround

service’’ means a flight between places only in Hawaii.

(2)(A) An air carrier or foreign air carrier may not operate in

Hawaii, or between a place in Hawaii and a place outside the 48

contiguous States, a greater number of stage 2 aircraft with a max- imum weight of more than 75,000 pounds than it operated in Hawaii, or between a place in Hawaii and a place outside the 48 contiguous States, on November 5, 1990.

(B) An air carrier that provided turnaround service in Hawaii

on November 5, 1990, using stage 2 aircraft with a maximum

weight of more than 75,000 pounds may include in the number of

aircraft authorized under subparagraph (A) of this paragraph all

stage 2 aircraft with a maximum weight of more than 75,000

pounds that were owned or leased by that carrier on that date,

whether or not the aircraft were operated by the carrier on that

date.

(3) An air carrier may provide turnaround service in Hawaii

using stage 2 aircraft with a maximum weight of more than 75,000

pounds only if the carrier provided the service on November 5,

1990.

(4) An air carrier operating Stage 2 aircraft under this

subsection may transport Stage 2 aircraft to or from the 48

contiguous States on a non-revenue basis in order—

(A) to perform maintenance (including major alter- ations) or preventative maintenance on aircraft operated,

or to be operated, within the limitations of paragraph

(2)(B); or
231

(B) conduct operations within the limitations of paragraph (2)(B).

(f) AIRCRAFT MODIFICATION, DISPOSAL, SCHEDULED HEAVY

MAINTENANCE, OR LEASING.—

(1) IN GENERAL.—The Secretary shall permit a person to

operate after December 31, 1999, a Stage 2 aircraft in nonrevenue service through the airspace of the United States or to or

from an airport in the contiguous 48 States in order to—

(A) sell, lease, or use the aircraft outside the contiguous 48 States;

(B) scrap the aircraft;

(C) obtain modifications to the aircraft to meet Stage

3 noise levels;

(D) perform scheduled heavy maintenance or significant modifications on the aircraft at a maintenance facility

located in the contiguous 48 States;

(E) deliver the aircraft to an operator leasing the aircraft from the owner or return the aircraft to the lessor;

(F) prepare or park or store the aircraft in anticipation

of any of the activities described in subparagraphs (A)

through (E); or

(G) divert the aircraft to an alternative airport in the

contiguous 48 States on account of weather, mechanical,

fuel, air traffic control, or other safety reasons while conducting a flight in order to perform any of the activities described in subparagraphs (A) through (F).

(2) PROCEDURE TO BE PUBLISHED.—The Secretary shall es- tablish and publish, not later than 30 days after the date of en- actment of this Act a procedure to implement paragraph (1) of

this subsection through the use of categorical waivers, ferry

permits, or other means.

(g) STATUTORY CONSTRUCTION.—Nothing in this section may be

construed as interfering with, nullifying, or otherwise affecting determinations made by the Federal Aviation Administration, or to

be made by the Administration with respect to applications under

part 161 of title 14, Code of Federal Regulations, that were pending

on November 1, 1999.

§ 47529. Nonaddition rule

(a) GENERAL LIMITATIONS.—Except as provided in subsection

(b) of this section and section 47530 of this title, a person may op- erate a civil subsonic turbojet aircraft with a maximum weight of

more than 75,000 pounds that is imported into the United States

after November 4, 1990, only if the aircraft—

(1) complies with the stage 3 noise levels; or

(2) was purchased by the person importing the aircraft

into the United States under a legally binding contract made

before November 5, 1990.

(b) EXEMPTIONS.—The Secretary of Transportation may provide

an exemption from subsection (a) of this section to permit a person

to obtain modifications to an aircraft to meet the stage 3 noise levels.

(c) AIRCRAFT DEEMED NOT IMPORTED.—In this section, an aircraft is deemed not to have been imported into the United States

if the aircraft—

(1) was owned on November 5, 1990, by—

(A) a corporation, trust, or partnership organized

under the laws of the United States or a State (including

the District of Columbia);

(B) an individual who is a citizen of the United States;

or

(C) an entity that is owned or controlled by a corporation, trust, partnership, or individual described in subclause (A) or (B) of this clause; and

(2) enters the United States not later than 6 months after

the expiration of a lease agreement (including any extension)

between an owner described in clause (1) of this subsection and

a foreign carrier.

§ 47530. Nonapplication of sections 47528(a)–(d) and 47529 to

aircraft outside the 48 contiguous States

Sections 47528(a)–(d) and 47529 of this title do not apply to

aircraft used only to provide air transportation outside the 48 contiguous States. A civil subsonic turbojet aircraft with a maximum

weight of more than 75,000 pounds that is imported into a noncontiguous State or a territory or possession of the United States

after November 4, 1990, may be used to provide air transportation

in the 48 contiguous States only if the aircraft complies with the

stage 3 noise levels.

§ 47531. Penalties for violating sections 47528–47530

A person violating section 47528, 47529, or 47530 of this title

or a regulation prescribed under any of those sections is subject to

the same civil penalties and procedures under chapter 463 of this

title as a person violating section 44701(a) or (b) or any of sections

44702–44716 of this title.

§ 47532. Judicial review

An action taken by the Secretary of Transportation under any

of sections 47528–47531 of this title is subject to judicial review as

provided under section 46110 of this title.

§ 47533. Relationship to other laws

Except as provided by section 47524 of this title, this subchapter does not affect— (1) law in effect on November 5, 1990, on airport noise or

access restrictions by local authorities;

(2) any proposed airport noise or access restriction at a

general aviation airport if the airport proprietor has formally
232

initiated a regulatory or legislative process before October 2,

1990; or

(3) the authority of the Secretary of Transportation to seek

and obtain legal remedies the Secretary considers appropriate,

including injunctive relief.

PART C—FINANCING

CHAPTER 481—AIRPORT AND AIRWAY TRUST FUND

AUTHORIZATIONS

Sec.

48101. Air navigation facilities and equipment.

48102. Research and development.

48103. Airport planning and development and noise compatibility planning and

programs.

48104. Operations and maintenance.

48105. Weather reporting services.

48106. Airway science curriculum grants.

48107. Civil aviation security research and development.

48108. Availability and uses of amounts.

48109. Submission of budget information and legislative recommendations and

comments.

48110. Facilities for advanced training of maintenance technicians for air carrier

aircraft. 48111. Funding proposals.

48112. Adjustment to AIP program funding.

48113. Reprogramming notification requirement.

48114. Funding for aviation programs.

§ 48101. Air navigation facilities and equipment

(a) GENERAL AUTHORIZATION OF APPROPRIATIONS.—Not more

than a total of the following amounts may be appropriated to the

Secretary of Transportation out of the Airport and Airway Trust

Fund established under section 9502 of the Internal Revenue Code

of 1986 (26 U.S.C. 9502) to acquire, establish, and improve air

navigation facilities under section 44502(a)(1)(A) of this title:

(1) $3,138,000,000 for fiscal year 2004;

(2) $2,993,000,000 for fiscal year 2005;

(3) $3,053,000,000 for fiscal year 2006; and

(4) $3,110,000,000 for fiscal year 2007. (b) AVAILABILITY OF AMOUNTS.—Amounts appropriated under

this section remain available until expended.

(c) ENHANCED SAFETY AND SECURITY FOR AIRCRAFT OPERATIONS IN THE GULF OF MEXICO.—Of amounts appropriated under

subsection (a), such sums as may be necessary for fiscal years 2004

through 2007 may be used to expand and improve the safety, effi- ciency, and security of air traffic control, navigation, low altitude

communications and surveillance, and weather services in the Gulf

of Mexico.

(d) OPERATIONAL BENEFITS OF WAKE VORTEX ADVISORY SYSTEM.—Of amounts appropriated under subsection (a), such sums as

may be necessary for each of fiscal years 2004 through 2007 may

be used for the development and analysis of wake vortex advisory

systems.

(e) GROUND-BASED PRECISION NAVIGATIONAL AIDS.—Of

amounts appropriated under subsection (a), such sums as may be

necessary for each of fiscal years 2004 to 2007 may be used to establish a program for the installation of a precision approach aid

designed to improve aircraft accessibility at mountainous airports

with limited land if the approach aid is able to provide curved and

segmented approach guidance for noise abatement purposes and

other such approach aids and is certified or approved by the Administrator.

(f) 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.

(g) LIFE-CYCLE COST ESTIMATES.—The Administrator of the

Federal Aviation Administration shall establish life-cycle cost esti- mates for any air traffic control modernization project the total life- cycle costs of which equal or exceed $50,000,000.

(h) STANDBY POWER EFFICIENCY PROGRAM.—Of amounts appropriated under subsection (a), such sums as may be necessary for

each of fiscal years 2004 through 2007 may be used by the Secretary of Transportation, in cooperation with the Secretary of Energy and, where applicable, the Secretary of Defense, to establish

a program to improve the efficiency, cost effectiveness, and environmental performance of standby power systems at Federal Aviation

Administration sites, including the implementation of fuel cell technology.

(i) PILOT PROGRAM TO PROVIDE INCENTIVES FOR DEVELOPMENT

OF NEW TECHNOLOGIES.—Of amounts appropriated under subsection (a), $500,000 for fiscal year 2004 may be used for the conduct of a pilot program to provide operating incentives to users of

the airspace for the deployment of new technologies, including technologies to facilitate expedited flight routing and sequencing of

takeoffs and landings.

§ 48102. Research and development

(a) AUTHORIZATION OF APPROPRIATIONS.—Not more than 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) for conducting civil aviation research and development under

sections 44504, 44505, 44507, 44509, and 44511–44513 of this title:

(1) for fiscal year 1995—

(A) $7,673,000 for management and analysis projects

and activities;

(B) $80,901,000 for capacity and air traffic manage-
233

ment technology projects and activities;

(C) $39,242,000 for communications, navigation, and

surveillance projects and activities;

(D) $2,909,000 for weather projects and activities;

(E) $8,660,000 for airport technology projects and activities;

(F) $51,004,000 for aircraft safety technology projects

and activities;

(G) $36,604,000 for system security technology projects

and activities;

(H) $26,484,000 for human factors and aviation medicine projects and activities;

(I) $8,124,000 for environment and energy projects and

activities; and

(J) $5,199,000 for innovative/cooperative research

projects and activities;

(2) for fiscal year 1996—

(A) $8,056,000 for management and analysis projects

and activities;

(B) $84,946,000 for capacity and air traffic management technology projects and activities;

(C) $41,204,000 for communications, navigation, and

surveillance projects and activities;

(D) $3,054,000 for weather projects and activities;

(E) $9,093,000 for airport technology projects and activities;

(F) $53,554,000 for aircraft safety technology projects

and activities;

(G) $38,434,000 for system security technology projects

and activities;

(H) $27,808,000 for human factors and aviation medicine projects and activities;

(I) $8,532,000 for environment and energy projects and

activities; and

(J) $5,459,000 for innovative/cooperative research

projects and activities;

(3) for fiscal year 1997—

(A) $13,660,000 for system development and infrastructure projects and activities;

(B) $34,889,000 for capacity and air traffic management technology projects and activities;

(C) $19,000,000 for communications, navigation, and

surveillance projects and activities;

(D) $13,000,000 for weather projects and activities;

(E) $5,200,000 for airport technology projects and ac- tivities;

(F) $36,504,000 for aircraft safety technology projects

and activities;

(G) $57,055,000 for system security technology projects

and activities;

(H) $23,504,000 for human factors and aviation medicine projects and activities;

(I) $3,600,000 for environment and energy projects and

activities; and

(J) $2,000,000 for innovative/cooperative research

projects and activities;

(4) for fiscal year 1998, $226,800,000, including—

(A) $16,379,000 for system development and infrastructure projects and activities;

(B) $27,089,000 for capacity and air traffic management technology projects and activities;

(C) $23,362,000 for communications, navigation, and

surveillance projects and activities;

(D) $16,600,000 for weather projects and activities;

(E) $7,854,000 for airport technology projects and ac- tivities;

(F) $49,202,000 for aircraft safety technology projects

and activities;

(G) $53,759,000 for system security technology projects

and activities;

(H) $26,550,000 for human factors and aviation medi- cine projects and activities;

(I) $2,891,000 for environment and energy projects and

activities; and

(J) $3,114,000 for innovative/cooperative research

projects and activities, of which $750,000 shall be for car- rying out the grant program established under subsection

(h);

(5) for fiscal year 1999, $229,673,000;

(6) for fiscal year 2000, $224,000,000, including— (A) $17,269,000 for system development and infra- structure projects and activities;

(B) $33,042,500 for capacity and air traffic manage- ment technology projects and activities;

(C) $11,265,400 for communications, navigation, and

surveillance projects and activities;

(D) $19,300,000 for weather projects and activities;

(E) $6,358,200 for airport technology projects and activities;

(F) $44,457,000 for aircraft safety technology projects

and activities;

(G) $53,218,000 for system security technology projects

and activities;

(H) $26,207,000 for human factors and aviation medicine projects and activities;

(I) $3,481,000 for environment and energy projects and

activities; and

(J) $2,171,000 for innovative/cooperative research

projects and activities, of which $750,000 shall be for carrying out subsection (h);
234

(7) for fiscal year 2001, $237,000,000;

(8) for fiscal year 2002, $249,000,000;

(9) for fiscal year 2004, $346,317,000, including—

(A) $65,000,000 for Improving Aviation Safety;

(B) $24,000,000 for Weather Safety Research;

(C) $27,500,000 for Human Factors and Aeromedical

Research;

(D) $30,000,000 for Environmental Research and Development, of which $20,000,000 shall be for research activities related to reducing community exposure to civilian

aircraft noise or emissions;

(E) $7,000,000 for Research Mission Support;

(F) $10,000,000 for the Airport Cooperative Research

Program;

(G) $1,500,000 for carrying out subsection (h) of this

section;

(H) $42,800,000 for Advanced Technology Development and Prototyping;

(I) $30,300,000 for Safe Flight 21;

(J) $90,800,000 for the Center for Advanced Aviation

System Development;

(K) $9,667,000 for Airports Technology-Safety; and

(L) $7,750,000 for Airports Technology-Efficiency;

(10) for fiscal year 2005, $356,192,000, including—

(A) $65,705,000 for Improving Aviation Safety;

(B) $24,260,000 for Weather Safety Research;

(C) $27,800,000 for Human Factors and Aeromedical

Research;

(D) $30,109,000 for Environmental Research and Development, of which $20,000,000 shall be for research ac- tivities related to reducing community exposure to civilian

aircraft noise or emissions;

(E) $7,076,000 for Research Mission Support;

(F) $10,000,000 for the Airport Cooperative Research

Program;

(G) $1,650,000 for carrying out subsection (h) of this

section;

(H) $43,300,000 for Advanced Technology Development and Prototyping;

(I) $31,100,000 for Safe Flight 21;

(J) $95,400,000 for the Center for Advanced Aviation

System Development;

(K) $2,200,000 for Free Flight Phase 2;

(L) $9,764,000 for Airports Technology-Safety; and

(M) $7,828,000 for Airports Technology-Efficiency;

(11) for fiscal year 2006, $352,157,000, including—

(A) $66,447,000 for Improving Aviation Safety;

(B) $24,534,000 for Weather Safety Research;

(C) $28,114,000 for Human Factors and Aeromedical

Research;

(D) $30,223,000 for Environmental Research and Development, of which $20,000,000 shall be for research activities related to reducing community exposure to civilian

aircraft noise or emissions;

(E) $7,156,000 for Research Mission Support;

(F) $10,000,000 for the Airport Cooperation Research

Program;

(G) $1,815,000 for carrying out subsection (h) of this

section;

(H) $42,200,000 for Advanced Technology Development and Prototyping;

(I) $23,900,000 for Safe Flight 21;

(J) $100,000,000 for the Center for Advanced Aviation

System Development;

(K) $9,862,000 for Airports Technology-Safety; and

(L) $7,906,000 for Airports Technology-Efficiency; and

(12) for fiscal year 2007, $356,261,000, including—

(A) $67,244,000 for Improving Aviation Safety;

(B) $24,828,000 for Weather Safety Research;

(C) $28,451,000 for Human Factors and Aeromedical

Research;

(D) $30,586,000 for Environmental Research and De- velopment, of which $20,000,000 shall be for research activities related to reducing community exposure to civilian

aircraft noise or emissions;

(E) $7,242,000 for Research Mission Support;

(F) $10,000,000 for the Airport Cooperation Research

Program;

(G) $1,837,000 for carrying out subsection (h) of this

section;

(H) $42,706,000 for Advanced Technology Development and Prototyping;

(I) $24,187,000 for Safe Flight 21;

(J) $101,200,000 for the Center for Advanced Aviation

System Development;

(K) $9,980,000 for Airports Technology-Safety; and

(L) $8,000,000 for Airports Technology-Efficiency.

(b) RESEARCH PRIORITIES.—(1) The Administrator shall con- sider the advice and recommendations of the research advisory

committee established by section 44508 of this title in establishing

priorities among major categories of research and development ac- tivities carried out by the Federal Aviation Administration.

(2) At least 15 percent of the amount appropriated under subsection (a) of this section shall be for long-term research projects.

(3) At least 3 percent of the amount appropriated under subsection (a) of this section shall be available to the Administrator of

the Federal Aviation Administration to make grants under section

44511 of this title.

(c) TRANSFERS BETWEEN CATEGORIES.—(1) Not more than 10
235

percent of the net amount authorized for a category of projects and

activities in a fiscal year under subsection (a) of this section may

be transferred to or from that category in that fiscal year.

(2) The Secretary may transfer more than 10 percent of an au- thorized amount to or from a category only after—

(A) submitting a written explanation of the proposed

transfer to the Committees on Science and Appropriations of

the House of Representatives and the Committees on Commerce, Science, and Transportation and Appropriations of the

Senate; and

(B) 30 days have passed after the explanation is submitted

or each Committee notifies the Secretary in writing that it

does not object to the proposed transfer.

(d) AIRPORT CAPACITY RESEARCH AND DEVELOPMENT.—(1) Of

the amounts made available under subsection (a) of this section, at

least $25,000,000 may be appropriated each fiscal year for research

and development under section 44505(a) and (c) of this title on preserving and enhancing airport capacity, including research and development on improvements to airport design standards, maintenance, safety, operations, and environmental concerns.

(2) The Administrator shall submit to the Committees on

Science and Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on expenditures made under paragraph (1) of this subsection for each fiscal year. The report shall

be submitted not later than 60 days after the end of the fiscal year.

(e) AIR TRAFFIC CONTROLLER PERFORMANCE RESEARCH.—Necessary amounts may be appropriated to the Secretary out of

amounts in the Fund available for research and development to

conduct research under section 44506(a) and (b) of this title.

(f) AVAILABILITY OF AMOUNTS.—Amounts appropriated under

subsection (a) of this section remain available until expended.

(h) RESEARCH GRANTS PROGRAM INVOLVING UNDERGRADUATE

STUDENTS.—

(1) ESTABLISHMENT.—The Administrator of the Federal

Aviation Administration shall establish a program to utilize

undergraduate and technical colleges, including Historically

Black Colleges and Universities and Hispanic Serving Institu- tions, in research on subjects of relevance to the Federal Avia- tion Administration. Grants may be awarded under this sub- section for—

(A) research projects to be carried out at primarily un- dergraduate institutions and technical colleges;

(B) research projects that combine research at primarily undergraduate institutions and technical colleges

with other research supported by the Federal Aviation Administration;

(C) research on future training requirements on projected changes in regulatory requirements for aircraft

maintenance and power plant licensees; or

(D) research on the impact of new technologies and

procedures, particularly those related to aircraft flight

deck and air traffic management functions, on training requirements for pilots and air traffic controllers.

(2) NOTICE OF CRITERIA.—Within 6 months after the date

of the enactment of the FAA Research, Engineering, and Development Authorization Act of 1998, the Administrator of the

Federal Aviation Administration shall establish and publish in

the Federal Register criteria for the submittal of proposals for

a grant under this subsection, and for the awarding of such

grants.

(3) PRINCIPAL CRITERIA.—The principal criteria for the

awarding of grants under this subsection shall be—

(A) the relevance of the proposed research to technical

research needs identified by the Federal Aviation Administration;

(B) the scientific and technical merit of the proposed

research; and

(C) the potential for participation by undergraduate

students in the proposed research.

(4) COMPETITIVE, MERIT-BASED EVALUATION.—Grants shall

be awarded under this subsection on the basis of evaluation of

proposals through a competitive, merit-based process.

§ 48103. Airport planning and development and noise compatibility planning and programs

The total amounts which shall be available after September 30, 2003, 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 make grants for airport

planning and airport development under section 47104 of this title,

airport noise compatibility planning under section 47505(a)(2) of

this title, and carrying out noise compatibility programs under section 47504(c) of this title shall be—

(1) $3,400,000,000 for fiscal year 2004;

(2) $3,500,000,000 for fiscal year 2005;

(3) $3,600,000,000 for fiscal year 2006; and

(4) $3,700,000,000 for fiscal year 2007. Such sums shall

remain available until expended.

§ 48104. Operations and maintenance

(a) AUTHORIZATION OF APPROPRIATIONS.—the balance of the

money available in the Airport and Airway Trust Fund established

under section 9502 of the Internal Revenue Code of 1986 (26 U.S.C.

9502) may be appropriated to the Secretary of Transportation out

of the Fund for—

(1) direct costs the Secretary incurs to flight check, operate, and maintain air navigation facilities referred to in section

44502(a)(1)(A) of this title safely and efficiently; and

(2) the costs of services provided under international
236

agreements related to the joint financing of air navigation

services assessed against the United States Government.

[Subsections (b) and (c). Repealed. Pub. L. 106-181, title I, Sec.

106(d)(2), Apr. 5, 2000, 114 Stat. 73.]

§ 48105. Weather reporting services

To reimburse the Secretary of Commerce for the cost incurred

by the National Oceanic and Atmospheric Administration of providing weather reporting services to the Federal Aviation Administration, the Secretary of Transportation may expend from amounts

available under section 48104 of this title not more than the following amounts:

(1) for the fiscal year ending September 30, 1993,

$35,596,000.

(2) for the fiscal year ending September 30, 1994,

$37,800,000.

(3) for the fiscal year ending September 30, 1995,

$39,000,000.

§ 48106. Airway science curriculum grants

Amounts are available from the Airport and Airway Trust

Fund established under section 9502 of the Internal Revenue Code

of 1986 (26 U.S.C. 9502) to carry out section 44510 of this title. The

amounts remain available until expended.

§ 48107. Civil aviation security research and development

After the review under section 44912(b) of this title is completed, necessary 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 make grants under section 44912(a)(4)(A).

§ 48108. Availability and uses of amounts

(a) AVAILABILITY OF AMOUNTS.—Amounts equal to the amounts

authorized under sections 48101–48105 of this title remain in the

Airport and Airway Trust Fund established under section 9502 of

the Internal Revenue Code of 1986 (26 U.S.C. 9502) until appropriated for the purposes of sections 48101–48105.

(b) LIMITATIONS ON USES.—(1) Amounts in the Fund may be

appropriated only to carry out a program or activity referred to in

this chapter.

(2) Amounts in the Fund may be appropriated for administrative expenses of the Department of Transportation or a component

of the Department only to the extent authorized by section 48104

of this title.

(c) LIMITATION ON OBLIGATING OR EXPENDING AMOUNTS.—In a

fiscal year beginning after September 30, 1998, the Secretary of

Transportation may obligate or expend an amount appropriated out

of the Fund under section 48104 of this title only if a law expressly

amends section 48104.

§ 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 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.

§ 48110. Facilities for advanced training of maintenance

technicians for air carrier aircraft

For the fiscal years ending September 30, 1993–1995, amounts

necessary to carry out section 44515 of this title 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). The amounts remain available until expended.

§ 48111. Funding proposals

(a) INTRODUCTION IN THE SENATE.—Within 15 days (not counting any day on which the Senate is not in session) after a funding

proposal is submitted to the Senate by the Secretary of Transportation under section 274(c) of the Air Traffic Management System

Performance Improvement Act of 1996, an implementing bill with

respect to such funding proposal shall be introduced in the Senate

by the majority leader of the Senate, for himself and the minority

leader of the Senate, or by Members of the Senate designated by

the majority leader and minority leader of the Senate.

(b) CONSIDERATION IN THE SENATE.—An implementing bill introduced in the Senate under subsection (a) shall be referred to the

Committee on Commerce, Science, and Transportation. The Committee on Commerce, Science, and Transportation shall report the

bill with its recommendations within 60 days following the date of

introduction of the bill. Upon the reporting of the bill by the Committee on Commerce, Science, and Transportation, the reported bill

shall be referred sequentially to the Committee on Finance for a

period of 60 legislative days.

(c) DEFINITIONS.—For purposes of this section, the following

definitions apply:

(1) IMPLEMENTING BILL.—The term ‘‘implementing bill’’ means only a bill of the Senate which is introduced as provided

in subsection (a) with respect to one or more Federal Aviation

Administration funding proposals which contain changes in ex-
237

isting laws or new statutory authority required to implement

such funding proposal or proposals.

(2) FUNDING PROPOSAL.—The term ‘‘funding proposal’’

means a proposal to provide interim or permanent funding for

operations of the Federal Aviation Administration.

(d) RULES OF THE SENATE.—The provisions of this section are

enacted—

(1) as an exercise of the rulemaking power of the Senate

and as such they are deemed a part of the rules of the Senate

and they supersede other rules only to the extent that they are

inconsistent therewith; and

(2) with full recognition of the constitutional right of the

Senate to change the rules (so far as relating to the procedure

of the Senate) at any time, in the same manner and to the

same extent as in the case of any other rule of the Senate.

§ 48112. Adjustment to AIP program funding

On the effective date of a general appropriations Act providing

appropriations for a fiscal year beginning after September 30, 2000,

for the Federal Aviation Administration, the amount made available for a fiscal year under section 48103 shall be increased by the

amount, if any, by which—

(1) the amount authorized to be appropriated under section 48101 for such fiscal year; exceeds

(2) the amounts appropriated for programs funded under

such section for such fiscal year.

Any contract authority made available by this section shall be subject to an obligation limitation.

§ 48113. Reprogramming notification requirement

Before reprogramming any amounts appropriated under section 106(k), 48101(a), 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 through fiscal year 2007 pursuant to sections

48101, 48102, 48103, and 106(k) of title 49, United States

Code, shall be equal to the level of receipts plus interest

credited to the Airport and Airway Trust Fund for that fis- cal year. Such amounts may be used only for aviation in- vestment programs listed in subsection (b).

(B) GUARANTEE.—No funds may be appropriated or

limited for aviation investment programs listed in sub- section (b) 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

2007, 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) LEVEL OF RECEIPTS PLUS INTEREST.—The term ‘‘level of

receipts plus interest’’ means the level of excise taxes and interest credited to the Airport and Airway Trust Fund under

section 9502 of the Internal Revenue Code of 1986 for a fiscal

year as set forth in the President’s budget baseline projection

as defined in section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99–177) (Treasury identification code 20–8103–0–7–402) for that fiscal year

submitted pursuant to section 1105 of title 31, United States

Code.

(c) ENFORCEMENT OF GUARANTEES.—

(1) TOTAL AIRPORT AND AIRWAY TRUST FUND FUNDING.—It

shall not be in order in the House of Representatives or the

Senate to consider any bill, joint resolution, amendment, motion, or conference report that would cause total budget resources in a fiscal year for aviation investment programs described in subsection (b) to be less than the amount required

by subsection (a)(1)(A) for such fiscal year.

(2) CAPITAL PRIORITY.—It shall not be in order in the

House of Representatives or the Senate to consider any bill,

joint resolution, amendment, motion, or conference report that

provides an appropriation (or any amendment thereto) for any

fiscal year through fiscal year 2007 for Research and Development or Operations if the sum of the obligation limitation for

Grants-in-Aid for Airports and the appropriation for Facilities
238

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.

CHAPTER 482—ADVANCE APPROPRIATIONS FOR

AIRPORT AND AIRWAY TRUST FACILITIES

Sec.

48201. Advance appropriations.

§ 48201. Advance appropriations

(a) MULTIYEAR AUTHORIZATIONS.—Beginning with fiscal year

1999, any authorization of appropriations for an activity for which

amounts are to be appropriated from the Airport and Airway Trust

Fund established under section 9502 of the Internal Revenue Code

of 1986 shall provide funds for a period of not less than 3 fiscal

years unless the activity for which appropriations are authorized is

to be concluded before the end of that period.

(b) MULTIYEAR APPROPRIATIONS.—Beginning with fiscal year

1999, amounts appropriated from the Airport and Airway Trust

Fund shall be appropriated for periods of 3 fiscal years rather than

annually.

CHAPTER 483—AVIATION SECURITY FUNDING

Sec.

48301. Aviation security funding.

§ 48301. Aviation security funding

(a) IN GENERAL.—There are authorized to be appropriated for

fiscal years 2002, 2003, 2004, 2005, and 2006 such sums as may be

necessary to carry out chapter 449 and related aviation security

activi- ties under this title. Any amounts appropriated pursuant

to this section for fiscal year 2002 shall remain available until

expended.

(b) GRANTS FOR AIRCRAFT SECURITY.—There is authorized to be

appropriated $500,000,000 for fiscal year 2002 to the Secretary of

Transportation to make grants to or other agreements with air carriers (including intrastate air carriers) to—

(1) fortify cockpit doors to deny access from the cabin to

the pilots in the cockpit;

(2) provide for the use of video monitors or other devices

to alert the cockpit crew to activity in the passenger cabin;

(3) ensure continuous operation of the aircraft transponder

in the event the crew faces an emergency; and

(4) provide for the use of other innovative technologies to

enhance aircraft security.

PART D—PUBLIC AIRPORTS

CHAPTER 491—METROPOLITAN WASHINGTON AIRPORTS

Sec.

49101. Findings.

49102. Purpose.

49103. Definitions.

49104. Lease of Metropolitan Washington Airports.

49105. Capital improvements, construction, and rehabilitation.

49106. Metropolitan Washington Airports Authority.

49107. Federal employees at Metropolitan Washington Airports.

49108. Limitations.

49109. Nonstop flights.

49110. Use of Dulles Airport Access Highway.

49111. Relationship to and effect of other laws.

49112. Separability and effect of judicial order.

§ 49101. Findings

Congress finds that—

(1) the 2 federally owned airports in the metropolitan area

of the District of Columbia constitute an important and growing part of the commerce, transportation, and economic patterns of Virginia, the District of Columbia, and the surrounding region;

(2) Baltimore/Washington International Airport, owned

and operated by Maryland, is an air transportation facility that

provides service to the greater Metropolitan Washington region

together with the 2 federally owned airports, and timely Federal-aid grants to Baltimore/Washington International Airport

will provide additional capacity to meet the growing air traffic

needs and to compete with other airports on a fair basis;

(3) the United States Government has a continuing but

limited interest in the operation of the 2 federally owned airports, which serve the travel and cargo needs of the entire

Metropolitan Washington region as well as the District of Columbia as the national seat of government;

(4) operation of the Metropolitan Washington Airports by

an independent local authority will facilitate timely improvements at both airports to meet the growing demand of interstate air transportation occasioned by the Airline Deregulation

Act of 1978 (Public Law 95–504; 92 Stat. 1705);

(5) all other major air carrier airports in the United States

are operated by public entities at the State, regional, or local

level;

(6) any change in status of the 2 airports must take into

account the interest of nearby communities, the traveling public, air carriers, general aviation, airport employees, and other

interested groups, as well as the interests of the United States

Government and State governments involved;

(7) in recognition of a perceived limited need for a Federal

role in the management of these airports and the growing local
239

interest, the Secretary of Transportation has recommended a

transfer of authority from the Federal to the local/State level

that is consistent with the management of major airports else- where in the United States;

(8) an operating authority with representation from local

jurisdictions, similar to authorities at all major airports in the

United States, will improve communications with local officials

and concerned residents regarding noise at the Metropolitan

Washington Airports;

(9) a commission of congressional, State, and local officials

and aviation representatives has recommended to the Sec- retary that transfer of the federally owned airports be as a unit

to an independent authority to be created by Virginia and the

District of Columbia; and

(10) the Federal interest in these airports can be provided

through a lease mechanism which provides for local control

and operation.

§ 49102. Purpose

(a) GENERAL.—The purpose of this chapter is to authorize the

transfer of operating responsibility under long-term lease of the 2

Metropolitan Washington Airport properties as a unit, including access highways and other related facilities, to a properly constituted

independent airport authority created by Virginia and the District

of Columbia, in order to achieve local control, management, operation, and development of these important transportation assets.

(b) INCLUSION OF BALTIMORE/WASHINGTON INTERNATIONAL AIRPORT NOT PRECLUDED.—This chapter does not prohibit the Airports

Authority and Maryland from making an agreement to make Baltimore/Washington International Airport part of a regional airports

authority, subject to terms agreed to by the Airports Authority, the

Secretary of Transportation, Virginia, the District of Columbia, and

Maryland.

§ 49103. Definitions

In this chapter—

(1) ‘‘Airports Authority’’ means the Metropolitan Wash- ington Airports Authority, a public authority created by Virginia and the District of Columbia consistent with the requirements of section 49106 of this title. (2) ‘‘employee’’ means any permanent Federal Aviation Administration personnel employed by the Metropolitan Washington Airports on June 7, 1987. (3) ‘‘Metropolitan Washington Airports’’ means Ronald

Reagan Washington National Airport and Washington Dulles

International Airport. (4) ‘‘Washington Dulles International Airport’’ means the

airport constructed under the Act of September 7, 1950 (ch.

905, 64 Stat. 770), and includes the Dulles Airport Access

Highway and Right-of-way, including the extension between

Interstate Routes I–495 and I–66.

(5) ‘‘Ronald Reagan Washington National Airport’’ means

the airport described in the Act of June 29, 1940 (ch. 444, 54

Stat. 686).

§ 49104. Lease of Metropolitan Washington Airports

(a) GENERAL.—The lease between the Secretary of Transportation and the Metropolitan Washington Airports Authority under

section 6005(a) of the Metropolitan Washington Airports Act of

1986 (Public Law 99–500; 100 Stat. 1783–375; Public Law 99–591;

100 Stat. 3341–378), for the Metropolitan Washington Airports

must provide during its 50-year term at least the following:

(1) The Airports Authority shall operate, maintain, protect, promote, and develop the Metropolitan Washington Airports as

a unit and as primary airports serving the Metropolitan Washington area.

(2)(A) In this paragraph, ‘‘airport purposes’’ means a use

of property interests (except a sale) for—

(i) aviation business or activities;

(ii) activities necessary or appropriate to serve passengers or cargo in air commerce; or

(iii) nonprofit, public use facilities that are not inconsistent with the needs of aviation.

(B) During the period of the lease, the real property constituting the Metropolitan Washington Airports shall be used

only for airport purposes.

(C) If the Secretary decides that any part of the real property leased to the Airports Authority under this chapter is used

for other than airport purposes, the Secretary shall—

(i) direct that the Airports Authority take appropriate

measures to have that part of the property be used for airport purposes; and

(ii) retake possession of the property if the Airports

Authority fails to have that part of the property be used

for airport purposes within a reasonable period of time, as

the Secretary decides.

(3) The Airports Authority is subject to section 47107(a)–

(c) and (e) of this title and to the assurances and conditions required of grant recipients under the Airport and Airway Improvement Act of 1982 (Public Law 97–248; 96 Stat. 671) as in

effect on June 7, 1987. Notwithstanding section 47107(b) of

this title, all revenues generated by the Metropolitan Washington Airports shall be expended for the capital and operating

costs of the Metropolitan Washington Airports.

(4) In acquiring by contract supplies or services for an

amount estimated to be more than $200,000, or awarding concession contracts, the Airports Authority to the maximum extent practicable shall obtain complete and open competition

through the use of published competitive procedures. By a vote

of 7 members, the Airports Authority may grant exceptions to

the requirements of this paragraph.
240

(5)(A) Except as provided in subparagraph (B) of this paragraph, all regulations of the Metropolitan Washington Airports

(14 CFR part 159) become regulations of the Airports Authority as of June 7, 1987, and remain in effect until modified or

revoked by the Airports Authority under procedures of the Airports Authority.

(B) Sections 159.59(a) and 159.191 of title 14, Code of Fed- eral Regulations, do not become regulations of the Airports Au- thority.

(C) The Airports Authority may not increase or decrease

the number of instrument flight rule takeoffs and landings au- thorized by the High Density Rule (14 CFR 93.121 et seq.) at

Ronald Reagan Washington National Airport on October 18, 1986, and may not impose a limitation on the number of pas- sengers taking off or landing at Ronald Reagan Washington

National Airport.

(6)(A) Except as specified in subparagraph (B) of this paragraph, the Airports Authority shall assume all rights, liabilities, and obligations of the Metropolitan Washington Airports

on June 7, 1987, including leases, permits, licenses, contracts,

agreements, claims, tariffs, accounts receivable, accounts payable, and litigation related to those rights and obligations, regardless whether judgment has been entered, damages awarded, or appeal taken. The Airports Authority must cooperate in

allowing representatives of the Attorney General and the Secretary adequate access to employees and records when needed

for the performance of duties and powers related to the period

before June 7, 1987. The Airports Authority shall assume responsibility for the Federal Aviation Administration’s Master

Plans for the Metropolitan Washington Airports. (B) The procedure for disputes resolution contained in any

contract entered into on behalf of the United States Government before June 7, 1987, continues to govern the performance

of the contract unless otherwise agreed to by the parties to the

contract. Claims for monetary damages founded in tort, by or

against the Government as the owner and operator of the Met- ropolitan Washington Airports, arising before June 7, 1987,

shall be adjudicated as if the lease had not been entered into.

(C) The Administration is responsible for reimbursing the

Employees’ Compensation Fund, as provided in section 8147 of

title 5, for compensation paid or payable after June 7, 1987, in

accordance with chapter 81 of title 5 for any injury, disability, or death due to events arising before June 7, 1987, whether or

not a claim was filed or was final on that date.

(D) The Airports Authority shall continue all collective

bargaining rights enjoyed by employees of the Metropolitan

Washington Airports before June 7, 1987.

(7) The Comptroller General may conduct periodic audits

of the activities and transactions of the Airports Authority in

accordance with generally accepted management principles,

and under regulations the Comptroller General may prescribe.

An audit shall be conducted where the Comptroller General

considers it appropriate. All records and property of the Airports Authority shall remain in possession and custody of the

Airports Authority.

(8) The Airports Authority shall develop a code of ethics

and financial disclosure to ensure the integrity of all decisions

made by its board of directors and employees. The code shall

include standards by which members of the board will decide,

for purposes of section 49106(d) of this title, what constitutes

a substantial financial interest and the circumstances under

which an exception to the conflict of interest prohibition may

be granted.

(9) A landing fee imposed for operating an aircraft or revenues derived from parking automobiles—

(A) at Washington Dulles International Airport may

not be used for maintenance or operating expenses (excluding debt service, depreciation, and amortization) at Ronald

Reagan Washington National Airport; and

(B) at Ronald Reagan Washington National Airport

may not be used for maintenance or operating expenses

(excluding debt service, depreciation, and amortization) at

Washington Dulles International Airport.

(10) The Airports Authority shall compute the fees and

charges for landing general aviation aircraft at the Metropolitan Washington Airports on the same basis as the landing fees

for air carrier aircraft, except that the Airports Authority may

require a minimum landing fee that is not more than the landing fee for aircraft weighing 12,500 pounds.

(11) The Secretary shall include other terms applicable to

the parties to the lease that are consistent with, and carry out,

this chapter.

(b) PAYMENTS.—Under the lease, the Airports Authority must

pay to the general fund of the Treasury annually an amount, computed using the GNP Price Deflator, equal to $3,000,000 in 1987

dollars. The Secretary and the Airports Authority may renegotiate

the level of lease payments attributable to inflation costs every 10

years.

(c) ENFORCEMENT OF LEASE PROVISIONS.—The district courts of

the United States have jurisdiction to compel the Airports Authority and its officers and employees to comply with the terms of the

lease. The Attorney General or an aggrieved party may bring an

action on behalf of the Government.

(d) EXTENSION OF LEASE.—The Secretary and the Airports Authority may at any time negotiate an extension of the lease.

§ 49105. Capital improvements, construction, and rehabilitation

(a) SENSE OF CONGRESS.—It is the sense of Congress that the

Metropolitan Washington Airports Authority—
241

(1) should pursue the improvement, construction, and rehabilitation of the facilities at Washington Dulles International

Airport and Ronald Reagan Washington National Airport simultaneously; and

(2) to the extent practicable, should cause the improvement, construction, and rehabilitation proposed by the Secretary of Transportation to be completed at Washington Dulles

International Airport and Ronald Reagan Washington National

Airport within 5 years after March 30, 1988.

(b) SECRETARY’S ASSISTANCE.—The Secretary shall assist the 3

airports serving the District of Columbia metropolitan area in planning for operational and capital improvements at those airports

and shall accelerate consideration of applications for United States

Government financial assistance by whichever of the 3 airports is

most in need of increasing airside capacity.

§ 49106. Metropolitan Washington Airports Authority

(a) STATUS.—The Metropolitan Washington Airports Authority

shall be—

(1) a public body corporate and politic with the powers and

jurisdiction—

(A) conferred upon it jointly by the legislative author- ity of Virginia and the District of Columbia or by either of

them and concurred in by the legislative authority of the

other jurisdiction; and

(B) that at least meet the specifications of this section

and section 49108 of this title;

(2) independent of Virginia and its local governments, the

District of Columbia, and the United States Government; and

(3) a political subdivision constituted only to operate and

improve the Metropolitan Washington Airports as primary air- ports serving the Metropolitan Washington area.

(b) GENERAL AUTHORITY.—(1) The Airports Authority shall be

authorized—

(A) to acquire, maintain, improve, operate, protect, and

promote the Metropolitan Washington Airports for public purposes;

(B) to issue bonds from time to time in its discretion for

public purposes, including paying any part of the cost of airport improvements, construction, and rehabilitation and the acquisition of real and personal property, including operating

equipment for the airports;

(C) to acquire real and personal property by purchase,

lease, transfer, or exchange;

(D) to exercise the powers of eminent domain in Virginia

that are conferred on it by Virginia;

(E) to levy fees or other charges; and

(F) to make and maintain agreements with employee organizations to the extent that the Federal Aviation Administra- tion was authorized to do so on October 18, 1986.

(2) Bonds issued under paragraph (1)(B) of this subsection—

(A) are not a debt of Virginia, the District of Columbia, or

a political subdivision of Virginia or the District of Columbia;

and

(B) may be secured by the Airports Authority’s revenues

generally, or exclusively from the income and revenues of certain designated projects whether or not any part of the projects

are financed from the proceeds of the bonds.

(c) BOARD OF DIRECTORS.—(1) The Airports Authority shall be

governed by a board of directors composed of the following 13 members:

(A) 5 members appointed by the Governor of Virginia;

(B) 3 members appointed by the Mayor of the District of

Columbia;

(C) 2 members appointed by the Governor of Maryland;

and

(D) 3 members appointed by the President with the advice

and consent of the Senate. (2) The chairman of the board shall be appointed from

among the members by majority vote of the members and shall

serve until replaced by majority vote of the members.

(3) Members of the board shall be appointed to the board for

6 years, except that of the members first appointed by the Presi- dent after October 9, 1996, one shall be appointed for 4 years. A

member may serve after the expiration of that member’s term until

a successor has taken office.

(4) A member of the board—

(A) may not hold elective or appointive political office;

(B) serves without compensation except for reasonable ex- penses incident to board functions; and

(C) must reside within the Washington Standard Metro- politan Statistical Area, except that a member of the board ap- pointed by the President must be a registered voter of a State

other than Maryland, Virginia, or the District of Columbia.

(5) A vacancy in the board shall be filled in the manner in

which the original appointment was made. A member appointed to

fill a vacancy occurring before the expiration of the term for which

the member’s predecessor was appointed shall be appointed only

for the remainder of that term. (6)(A) Not more than 2 of the members of the board appointed

by the President may be of the same political party.

(B) In carrying out their duties on the board, members ap- pointed by the President shall ensure that adequate consideration

is given to the national interest.

(C) A member appointed by the President may be removed by

the President for cause.

(7) Eight votes are required to approve bond issues and the annual budget.

(d) CONFLICTS OF INTEREST.—Members of the board and their

immediate families may not be employed by or otherwise hold a

substantial financial interest in any enterprise that has or is seek-
242

ing a contract or agreement with the Airports Authority or is an

aeronautical, aviation services, or airport services enterprise that

otherwise has interests that can be directly affected by the Airports

Authority. The official appointing a member may make an exception if the financial interest is completely disclosed when the member is appointed and the member does not participate in board decisions that directly affect the interest.

(e) CERTAIN ACTIONS TO BE TAKEN BY REGULATION.—An action

of the Airports Authority changing, or having the effect of changing, the hours of operation of, or the type of aircraft serving, either

of the Metropolitan Washington Airports may be taken only by regulation of the Airports Authority.

(f) ADMINISTRATIVE.—To assist the Secretary in carrying out

this chapter, the Secretary may hire 2 staff individuals to be paid

by the Airports Authority. The Airports Authority shall provide

clerical and support staff that the Secretary may require.

(g) REVIEW OF CONTRACTING PROCEDURES.—The Comptroller

General shall review contracts of the Airports Authority to decide

whether the contracts were awarded by procedures that follow

sound Government contracting principles and comply with section

49104(a)(4) of this title. The Comptroller General shall submit periodic reports of the conclusions reached as a result of the review to

the Committee on Transportation and Infrastructure of the House

of Representatives and the Committee on Commerce, Science, and

Transportation of the Senate.

§ 49107. Federal employees at Metropolitan Washington Air- ports

(a) LABOR AGREEMENTS.—(1) The Metropolitan Washington

Airports Authority shall adopt all labor agreements that were in effect on June 7, 1987. Unless the parties otherwise agree, the agreements must be renegotiated before June 7, 1992.

(2) Employee protection arrangements made under this section

shall ensure, during the 50-year lease term, the continuation of all

collective bargaining rights enjoyed by transferred employees re- tained by the Airports Authority. (b) CIVIL SERVICE RETIREMENT.—Any Federal employee who

transferred to the Airports Authority and who on June 6, 1987, was

subject to subchapter III of chapter 83 or chapter 84 of title 5, is

subject to subchapter III of chapter 83 or chapter 84 for so long as

continually employed by the Airports Authority without a break in

service. For purposes of subchapter III of chapter 83 and chapter

84, employment by the Airports Authority without a break in continuity of service is deemed to be employment by the United States

Government. The Airports Authority is the employing agency for

purposes of subchapter III of chapter 83 and chapter 84 and shall

contribute to the Civil Service Retirement and Disability Fund

amounts required by subchapter III of chapter 83 and chapter 84.

(c) ACCESS TO RECORDS.—The Airports Authority shall allow

representatives of the Secretary of Transportation adequate access

to employees and employee records of the Airports Authority when

needed to carry out a duty or power related to the period before

June 7, 1987. The Secretary shall provide the Airports Authority

access to employee records of transferring employees for appropriate purposes.

§ 49108. Limitations

After October 1, 2008, the Secretary of Transportation may not

approve an application of the Metropolitan Washington Airports

Authority—

(1) for an airport development project grant under subchapter I of chapter 471 of this title; or

(2) to impose a passenger facility fee under section 40117

of this title.

§ 49109. Nonstop flights

An air carrier may not operate an aircraft nonstop in air transportation between Ronald Reagan Washington National Airport

and another airport that is more than 1,250 statute miles away

from Ronald Reagan Washington National Airport.

§ 49110. Use of Dulles Airport Access Highway

The Metropolitan Washington Airports Authority shall continue in effect and enforce section 4.2(1) and (2) of the Metropolitan

Washington Airports Regulations, as in effect on February 1, 1995.

The district courts of the United States have jurisdiction to compel

the Airports Authority and its officers and employees to comply

with this section. The Attorney General or an aggrieved party may

bring an action on behalf of the United States Government.

§ 49111. Relationship to and effect of other laws

(a) SAME POWERS AND RESTRICTIONS UNDER OTHER LAWS.—To

ensure that the Metropolitan Washington Airports Authority has

the same proprietary powers and is subject to the same restrictions

under United States law as any other airport except as otherwise

provided in this chapter, during the period that the lease author- ized by section 6005 of the Metropolitan Washington Airports Act

of 1986 (Public Law 99–500; 100 Stat. 1783–375; Public Law 99– 591; 100 Stat. 3341–378) is in effect—

(1) the Metropolitan Washington Airports are deemed to

be public airports for purposes of chapter 471 of this title; and

(2) the Act of June 29, 1940 (ch. 444, 54 Stat. 686), the

First Supplemental Civil Functions Appropriations Act, 1941

(ch. 780, 54 Stat. 1030), and the Act of September 7, 1950 (ch. 905, 64 Stat. 770), do not apply to the operation of the Metro- politan Washington Airports, and the Secretary of Transpor- tation is relieved of all responsibility under those Acts.

(b) INAPPLICABILITY OF CERTAIN LAWS.—The Metropolitan

Washington Airports and the Airports Authority are not subject to

the requirements of any law solely by reason of the retention by

the United States Government of the fee simple title to those air-
243

ports.

(c) POLICE POWER.—Virginia shall have concurrent police

power authority over the Metropolitan Washington Airports, and

the courts of Virginia may exercise jurisdiction over Ronald Reagan

Washington National Airport.

(d) PLANNING.—(1) The authority of the National Capital Planning Commission under section 8722 of title 40, does not apply to

the Airports Authority.

(2) The Airports Authority shall consult with—

(A) the Commission and the Advisory Council on Historic

Preservation before undertaking any major alterations to the

exterior of the main terminal at Washington Dulles International Airport; and

(B) the Commission before undertaking development that

would alter the skyline of Ronald Reagan Washington National

Airport when viewed from the opposing shoreline of the Potomac River or from the George Washington Parkway.

§ 49112. Separability and effect of judicial order

(a) SEPARABILITY.—If any provision of this chapter, or the application of a provision of this chapter to a person or circumstance,

is held invalid, the remainder of this chapter and the application

of the provision to other persons or circumstances is not affected.

(b) EFFECT OF JUDICIAL ORDER.—(1) If any provision of the

Metropolitan Washington Airports Amendments Act of 1996 (title

IX of Public Law 104–264; 110 Stat. 3274) or the amendments

made by the Act, or the application of that provision to a person,

circumstance, or venue, is held invalid by a judicial order, the Secretary of Transportation and the Metropolitan Washington Airports

Authority shall be subject to section 49108 of this title from the day

after the day the order is issued.

(2) Any action of the Airports Authority that was required to

be submitted to the Board of Review under section 6007(f )(4) of the

Metropolitan Washington Airports Act of 1986 (Public Law 99–500;

100 Stat. 1783–380; Public Law 99–599; 100 Stat. 3341–383) before

October 9, 1996, remains in effect and may not be set aside only

because of a judicial order invalidating certain functions of the

Board.

PART E—MISCELLANEOUS

CHAPTER 501—BUY-AMERICAN PREFERENCES

Sec.

50101. Buying goods produced in the United States.

50102. Restricting contract awards because of discrimination against United States

goods or services.

50103. Contract preference for domestic firms.

50104. Restriction on airport projects using products or services of foreign countries denying fair market opportunities. 50105. Fraudulent use of ‘‘Made in America’’ label.

§ 50101. Buying goods produced in the United States

(a) PREFERENCE.—The Secretary of Transportation may obligate an amount that may be appropriated to carry out section

106(k), 44502(a)(2), or 44509, subchapter I of chapter 471 (except

section 47127), or chapter 481 (except sections 48102(e), 48106,

48107, and 48110) of this title for a project only if steel and manufactured goods used in the project are produced in the United

States.

(b) WAIVER.—The Secretary may waive subsection (a) of this

section if the Secretary finds that—

(1) applying subsection (a) would be inconsistent with the

public interest;

(2) the steel and goods produced in the United States are

not produced in a sufficient and reasonably available amount

or are not of a satisfactory quality;

(3) when procuring a facility or equipment under section

44502(a)(2) or 44509, subchapter I of chapter 471 (except section 47127), or chapter 481 (except sections 48102(e), 48106,

48107, and 48110) of this title—

(A) the cost of components and subcomponents produced in the United States is more than 60 percent of the

cost of all components of the facility or equipment; and

(B) final assembly of the facility or equipment has occurred in the United States; or

(4) including domestic material will increase the cost of the

overall project by more than 25 percent.

(c) LABOR COSTS.—In this section, labor costs involved in final

assembly are not included in calculating the cost of components.

§ 50102. Restricting contract awards because of discrimination against United States goods or services

A person or enterprise domiciled or operating under the laws

of a foreign country may not make a contract or subcontract under

section 106(k), 44502(a)(2), or 44509, subchapter I of chapter 471

(except section 47127), or chapter 481 (except sections 48102(e),

48106, 48107, and 48110) of this title or subtitle B of title IX of the

Omnibus Budget Reconciliation Act of 1990 (Public Law 101–508,

104 Stat. 1388–353) if the government of that country unfairly

maintains, in government procurement, a significant and persistent

pattern of discrimination against United States goods or services

that results in identifiable harm to United States businesses, that

the President identifies under section 305(g)(1)(A) of the Trade

Agreements Act of 1979 (19 U.S.C. 2515(g)(1)(A)).

§ 50103. Contract preference for domestic firms

(a) DEFINITIONS.—In this section—

(1) ‘‘domestic firm’’ means a business entity incorporated, and conducting business, in the United States.

(2) ‘‘foreign firm’’ means a business entity not described in

clause (1) of this subsection.
244

(b) PREFERENCE.—Subject to subsections (c) and (d) of this sec- tion, the Administrator of the Federal Aviation Administration may

make, with a domestic firm, a contract related to a grant made

under section 44511, 44512, or 44513 of this title that, under com- petitive procedures, would be made with a foreign firm, if—

(1) the Administrator decides, and the Secretary of Commerce and the United States Trade Representative concur,

that the public interest requires making the contract with the

domestic firm, considering United States international obligations and trade relations;

(2) the difference between the bids submitted by the foreign firm and the domestic firm is not more than 6 percent;

(3) the final product of the domestic firm will be assembled

completely in the United States; and

(4) at least 51 percent of the final product of the domestic

firm will be produced in the United States.

(c) NONAPPLICATION.—Subsection (b) of this section does not

apply if—

(1) compelling national security considerations require that

subsection (b) of this section not apply; or

(2) the Trade Representative decides that making the contract would violate the multilateral trade agreements (as defined in section 2(4) of the Uruguay Round Agreements Act) or

an international agreement to which the United States is a

party.

(d) APPLICATION TO CERTAIN GRANTS.—This section applies

only to a contract related to a grant made under section 44511,

44512, or 44513 of this title for which—

(1) an amount is authorized by section 48102(a), (b), or (d)

of this title to be made available for the fiscal years ending

September 30, 1991, and September 30, 1992; and

(2) a solicitation for bid is issued after November 5, 1990.

(e) REPORT.—The Administrator shall submit a report to Congress on—

(1) contracts to which this section applies that are made

with foreign firms in the fiscal years ending September 30,

1991, and September 30, 1992;

(2) the number of contracts that meet the requirements of

subsection (b) of this section, but that the Trade Representative decides would violate the multilateral trade agreements

(as defined in section 2(4) of the Uruguay Round Agreements

Act) or an international agreement to which the United States

is a party; and

(3) the number of contracts made under this section.

§ 50104. Restriction on airport projects using products or

services of foreign countries denying fair market

opportunities

(a) DEFINITION AND RULES FOR CONSTRUING SECTION.—In this

section—

(1) ‘‘project’’ has the same meaning given that term in sec- tion 47102 of this title. (2) each foreign instrumentality and each territory and

possession of a foreign country administered separately for cus- toms purposes is a separate foreign country.

(3) an article substantially produced or manufactured in a

foreign country is a product of the country. (4) a service provided by a person that is a national of a

foreign country or that is controlled by a national of a foreign

country is a service of the country.

(b) LIMITATION ON USE OF AVAILABLE AMOUNTS.—(1) An

amount made available under subchapter I of chapter 471 of this

title (except section 47127) may not be used for a project that uses

a product or service of a foreign country during any period the

country is on the list maintained by the United States Trade Representative under subsection (d)(1) of this section.

(2) Paragraph (1) of this subsection does not apply when the

Secretary of Transportation decides that—

(A) applying paragraph (1) to the product, service, or

project is not in the public interest;

(B) a product or service of the same class or type and of

satisfactory quality is not produced or offered in the United

States, or in a foreign country not listed under subsection

(d)(1) of this section, in a sufficient and reasonably available

amount; and

(C) the project cost will increase by more than 20 percent

if the product or service is excluded.

(c) DECISIONS ON DENIAL OF FAIR MARKET OPPORTUNITIES.—

Not later than 30 days after a report is submitted to Congress

under section 181(b) of the Trade Act of 1974 (19 U.S.C. 2241(b)),

the Trade Representative, for a construction project of more than

$500,000 for which the government of a foreign country supplies

any part of the amount, shall decide whether the foreign country

denies fair market opportunities for products and suppliers of the

United States in procurement or for United States bidders. In making the decision, the Trade Representative shall consider information obtained in preparing the report and other information the

Trade Representative considers relevant.

(d) LIST OF COUNTRIES DENYING FAIR MARKET OPPORTUNITIES.—(1) The Trade Representative shall maintain a list of each

foreign country the Trade Representative finds under subsection (c)

of this section is denying fair market opportunities. The country

shall remain on the list until the Trade Representative decides the

country provides fair market opportunities.

(2) The Trade Representative shall publish in the Federal

Register—

(A) annually the list required under paragraph (1) of this

subsection; and

(B) any modification of the list made before the next list

is published.
245

§ 50105. Fraudulent use of ‘‘Made in America’’ label

If the Secretary of Transportation decides that a person intentionally affixed a ‘‘Made in America’’ label to goods sold in or

shipped to the United States that are not made in the United

States, the Secretary shall declare the person ineligible, for not less

than 3 nor more than 5 years, to receive a contract or grant from

the United States Government related to a contract made under

section 106(k), 44502(a)(2), or 44509, subchapter I of chapter 471

(except section 47127), or chapter 481 (except sections 48102(e),

48106, 48107, and 48110) of this title or subtitle B of title IX of the

Omnibus Budget Reconciliation Act of 1990 (Public Law 101–508,

104 Stat. 1388–353). The Secretary may bring a civil action to enforce this section in any district court of the United States.
246

SUBTITLE IX—COMMERCIAL SPACE TRANSPORTATION

SUBTITLE IX—COMMERCIAL SPACE

TRANSPORTATION

CHAPTER Sec.

701. COMMERCIAL SPACE LAUNCH ACTIVITIES ............................................. 70101

703. SPACE TRANSPORTATION INFRASTRUCTURE MATCHING GRANTS.... 70301

CHAPTER 701—COMMERCIAL SPACE LAUNCH ACTIVITIES

Sec.

70101. Findings and purposes.

70102. Definitions.

70103. General authority.

70104. Restrictions on launches, operations, and reentries.

70105. License applications and requirements.

70105a. Experimental Permits.

70106. Monitoring activities.

70107. Effective periods, and modifications, suspensions, and revocations, of licenses.

70108. Prohibition, suspension, and end of launches, operation of launch sites and reentry

sites, and reentries.

70109. Preemption of scheduled launches or reentries.

70109a. Space advertising.

70110. Administrative hearings and judicial review.

70111. Acquiring United States Government property and services.

70112. Liability insurance and financial responsibility requirements.

70113. Paying claims exceeding liability insurance and financial responsibility

requirements.

70114. Disclosing information.

70115. Enforcement and penalty.

70116. Consultation.

70117. Relationship to other executive agencies, laws, and international obligations.

70118. User fees.

70119. Office of Commercial Space Transportation.

70120. Regulations.

70121. Report to Congress.

§ 70101. Findings and purposes

(a) FINDINGS.—Congress finds that—

(1) the peaceful uses of outer space continue to be of great

value and to offer benefits to all mankind;

(2) private applications of space technology have achieved

a significant level of commercial and economic activity and

offer the potential for growth in the future, particularly in the

United States;

(3) new and innovative equipment and services are being

sought, produced, and offered by entrepreneurs in

telecommunications, information services, microgravity

research, human space flight and remote sensing technologies;

(4) the private sector in the United States has the capability

of developing and providing private launching, reentry, and

associated services that would complement the launching,

reentry, and associated capabilities of the United States

Government;
247

(5) the development of commercial launch vehicles, reentry

vehicles, and associated services would enable the United

States to retain its competitive position internationally,

contributing to the national interest and economic well-being of

the United States;

(6) providing launch services and reentry services by the

private sector is consistent with the national security and

foreign policy interests of the United States and would be

facilitated by stable, minimal, and appropriate regulatory

guidelines that are fairly and expeditiously applied;

(7) the United States should encourage private sector

launches, reentries, and associated services and, only to the

extent necessary, regulate those launches, reentries, and

services to ensure compliance with international obligations of

the United States and to protect the public health and safety,

safety of property, and national security and foreign policy

interests of the United States;

(8) space transportation, including the establishment and

operation of launch sites, reentry sites, and complementary

facilities, the providing of launch services and reentry services,

the establishment of support facilities, and the providing of

support services, is an important element of the transportation

system of the United States, and in connection with the

commerce of the United States there is a need to develop a

strong space transportation infrastructure with significant

private sector involvement;

(9) the participation of State governments in encouraging

and facilitating private sector involvement in space-related

activity, particularly through the establishment of a space

transportation-related infrastructure, including launch sites,

reentry sites, complementary facilities, and launch site and

reentry site support facilities, is in the national interest and is of

significant public benefit;

(10) the goal of safely opening space to the American

people and their private commercial, scientific, and cultural

enterprises should guide Federal space investments, policies,

and regulations;

(11) private industry has begun to develop commercial

launch vehicles capable of carrying human beings into space

and greater private investment in these efforts will stimulate the

Nation's commercial space transportation industry as a whole;

(12) space transportation is inherently risky, and the future

of the commercial human space flight industry will depend on

its ability to continually improve its safety performance;

(13) a critical area of responsibility for the Department of

Transportation is

to regulate the operations and safety of the emerging

commercial human space flight industry;

(14) the public interest is served by creating a clear legal,

regulatory, and safety regime for commercial human space

flight; and

(15) the regulatory standards governing human space flight

must evolve as the industry matures so that regulations neither

stifle technology development nor expose crew or space flight

participants to avoidable risks as the public comes to expect

greater safety for crew and space flight participants from the

industry.

(b) PURPOSES.—The purposes of this chapter are—

(1) to promote economic growth and entrepreneurial

activity through use of the space environment for peaceful

purposes;

(2) to encourage the United States private sector to provide

launch vehicles, reentry vehicles, and associated services by—

(A) simplifying and expediting the issuance and transfer

of commercial licenses;

(B) facilitating and encouraging the use of Governmentdeveloped space technology; and

(C) promoting the continuous improvement of the

safety of launch vehicles designed to carry humans,

including through the issuance of regulations, to the extent

permitted by this chapter;

(3) to provide that the Secretary of Transportation is to

oversee and coordinate the conduct of commercial launch and

reentry operations, issue permits and commercial licenses and

transfer commercial licenses authorizing those operations, and

protect the public health and safety, safety of property, and

national security and foreign policy interests of the United

States; and

(4) to facilitate the strengthening and expansion of the

United States space transportation infrastructure, including the

enhancement of United States launch sites and launch-site

support facilities, and development of reentry sites, with

Government, State, and private sector involvement, to support

the full range of United States space-related activities

§ 70102. Definitions

In this chapter—

(1) “citizen of the United States” means—

(A) an individual who is a citizen of the United States;

(B) an entity organized or existing under the laws of the

United States or a State; or

(C) an entity organized or existing under the laws of a

foreign country if the controlling interest (as defined by the

Secretary of Transportation) is held by an individual or

entity described in subclause (A) or (B) of this clause.

(2) "crew" means any employee of a licensee or transferee,

or of a contractor or subcontractor of a licensee or transferee,

who performs activities in the course of that employment

directly relating to the launch, reentry, or other operation of or

in a launch vehicle or reentry vehicle that carries human
248

beings.

(3) “executive agency” has the same meaning given that

term in section 105 of title 5.

(4) “launch” means to place or try to place a launch vehicle

or reentry vehicle and any payload, crew, or space flight

participant from Earth—

(A) in a suborbital trajectory;

(B) in Earth orbit in outer space; or

(C) otherwise in outer space, including activities

involved in the preparation of a launch vehicle or payload

for launch, when those activities take place at a launch site

in the United States.

(5) “launch property” means an item built for, or used in,

the launch preparation or launch of a launch vehicle.

(6) “launch services” means—

(A) activities involved in the preparation of a launch

vehicle, payload, crew (including crew training), or space

flight participant for launch; and

(B) the conduct of a launch.

(7) “launch site” means the location on Earth from which a

launch takes place (as defined in a license the Secretary issues

or transfers under this chapter) and necessary facilities at that

location.

(8) “launch vehicle” means—

(A) a vehicle built to operate in, or place a payload or

human beings in, outer space; and

(B) a suborbital rocket.

(9) “obtrusive space advertising” means advertising in outer

space that is capable of being recognized by a human being on

the surface of the Earth without the aid of a telescope or other

technological device.

(10) “payload” means an object that a person undertakes to

place in outer space by means of a launch vehicle or reentry

vehicle, including components of the vehicle specifically

designed or adapted for that object.

(11) except in section 70104(c), "permit" means an

experimental permit issued under section 70105a.

(12) “person” means an individual and an entity organized

or existing under the laws of a State or country.

(13) “reenter” and “reentry” mean to return or attempt to

return, purposefully, a reentry vehicle and its payload, crew or

space flight participants, if any, from Earth orbit or from outer

space to Earth.

(14) “reentry services” means—

(A) activities involved in the preparation of a reentry

vehicle and payload, crew (including crew training), or

space flight participant, if any, for reentry; and

(B) the conduct of a reentry.

(15) “reentry site” means the location on Earth to which a

reentry vehicle is intended to return (as defined in a license the

Secretary issues or transfers under this chapter).

(16) “reentry vehicle” means a vehicle designed to return

from Earth orbit or outer space to Earth, or a reusable launch

vehicle designed to return from Earth orbit or outer space to

Earth, substantially intact.

(17) "space flight participant" means an individual, who is

not crew, carried within a launch vehicle or reentry vehicle.

(18) “State” means a State of the United States, the District

of Columbia, and a territory or possession of the United States.

(19) unless and until regulations take effect under section

70120(c)(2), "suborbital rocket" means a vehicle, rocketpropelled in whole or in part, intended for flight on a suborbital

trajectory, and the thrust of which is greater than its lift for the

majority of the rocket-powered portion of its ascent.

(20) 'suborbital trajectory" means the intentional flight path

of a launch vehicle, reentry vehicle, or any portion thereof,

whose vacuum instantaneous impact point does not leave the

surface of the Earth.

(21) “third party” means a person except—

(A) the United States Government or the Government’s

contractors or subcontractors involved in launch services or

reentry services;

(B) a licensee or transferee under this chapter;

(C) a licensee’s or transferee’s contractors, subcontractors, or customers involved in launch services or reentry

services;

(D) the customer’s contractors or subcontractors

involved in launch services or reentry services; or

(E) crew or space flight participants

(22) “United States” means the States of the United States,

the District of Columbia, and the territories and possessions of

the United States.

§ 70103. General authority

(a) GENERAL.—The Secretary of Transportation shall carry out

this chapter.

(b) FACILITATING COMMERCIAL LAUNCHES and REENTRIES.—In

carrying out this chapter, the Secretary shall—

(1) encourage, facilitate, and promote commercial space

launches and reentries by the private sector, including those

involving space flight participants; and

(2) take actions to facilitate private sector involvement in

commercial space transportation activity, and to promote

public-private partnerships involving the United States

Government, State governments, and the private sector to

build, expand, modernize, or operate a space launch and

reentry infra- structure.

(c) SAFETY.—In carrying out the responsibilities under

subsection (b), the Secretary shall encourage, facilitate, and

promote the continuous improvement of the safety of launch
249

vehicles designed to carry humans, and the Secretary may,

consistent with this chapter, promulgate regulations to carry out

this subsection.

(d) EXECUTIVE AGENCY ASSISTANCE.—When necessary, the

head of an executive agency shall assist the Secretary in carrying

out this chapter.

§ 70104. Restrictions on launches, operations, and reentries

(a) REQUIREMENT.—A license issued or transferred under this

chapter, or a permit is required for the following:

(1) for a person to launch a launch vehicle or to operate a

launch site or reentry site, or to reenter a reentry vehicle, in the

United States.

(2) for a citizen of the United States (as defined in section

70102(1)(A) or (B) of this title) to launch a launch vehicle or to

operate a launch site or reentry site, or to reenter a reentry

vehicle, outside the United States.

(3) for a citizen of the United States (as defined in section

70102(1)(C) of this title) to launch a launch vehicle or to

operate a launch site or reentry site, or to reenter a reentry

vehicle, outside the United States and outside the territory of a

foreign country unless there is an agreement between the

United States Government and the government of the foreign

country providing that the government of the foreign country

has jurisdiction over the launch or operation or reentry.

(4) for a citizen of the United States (as defined in section

70102(1)(C) of this title) to launch a launch vehicle or to

operate a launch site or reentry site, or to reenter a reentry

vehicle, in the territory of a foreign country if there is an

agreement between the United States Government and the

government of the foreign country providing that the United

States Government has jurisdiction over the launch or

operation or reentry.

Notwithstanding this subsection, a permit shall not authorize a person to operate a launch site or reentry site.

(b) COMPLIANCE WITH PAYLOAD REQUIREMENTS.—The holder of

a license or permit under this chapter may launch or reenter a

payload only if the payload complies with all requirements of the

laws of the United States related to launching or reentering a

payload.

(c) PREVENTING LAUNCHES AND REENTRIES.—The Secretary of

Transportation shall establish whether all required licenses,

authorizations, and permits required for a payload have been

obtained. If no license, authorization, or permit is required, the

Secretary may prevent the launch or reentry if the Secretary

decides the launch or reentry would jeopardize the public health

and safety, safety of property, or national security or foreign policy

interest of the United States.

(d) SINGLE LICENSE OR PERMIT.—The Secretary of

Transportation shall ensure that only 1 license or permit is required

from the Department of Transportation to conduct activities

involving crew or space flight participants, including launch and

reentry, for which a license or permit is required under this chapter.

The Secretary shall ensure that all Department of Transportation

regulations relevant to the licensed or permitted activity are

satisfied.

§ 70105. License applications and requirements

(a) APPLICATIONS.—(1) A person may apply to the Secretary of

Transportation for a license or transfer of a license under this

chapter in the form and way the Secretary prescribes. Consistent

with the public health and safety, safety of property, and national

security and foreign policy interests of the United States, the

Secretary, not later than 180 days after receiving an application,

shall issue or transfer a license if the Secretary decides in writing

that the applicant complies, and will continue to comply, with this

chapter and regulations prescribed under this chapter. The

Secretary shall inform the applicant of any pending issue and

action required to resolve the issue if the Secretary has not made a

decision not later than 120 days after receiving an application. The

Secretary shall transmit to the Committee on Science of the House

of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a written notice not later than 30

days after any occurrence when the Secretary has not taken action

on a license application within the deadline established by this

subsection.

(2) In carrying out paragraph (1), the Secretary may establish

procedures for safety approvals of launch vehicles, reentry

vehicles, safety systems, processes, services, or personnel

(including approval procedures for the purpose of protecting the

health and safety of crews and space flight participants, to the

extent permitted by subsections (b) and (c)) that may be used in

conducting licensed commercial space launch or reentry activities.

(b) REQUIREMENTS.—(1) Except as provided in this subsection,

all requirements of the laws of the United States applicable to the

launch of a launch vehicle or the operation of a launch site or a

reentry site, or the reentry of a reentry vehicle, are requirements for

a license or permit under this chapter.

(2) The Secretary may prescribe—

(A) any term necessary to ensure compliance with this

chapter, including on-site verification that a launch, operation,

or reentry complies with representations stated in the

application;

(B) any additional requirement necessary to protect the

public health and safety, safety of property, national security

interests, and foreign policy interests of the United States;

(C) by regulation that a requirement of a law of the United

States not be a requirement for a license or permit if the

Secretary, after consulting with the head of the appropriate

executive agency, decides that the requirement is not
250

necessary to protect the public health and safety, safety of

property, and national security and foreign policy interests of

the United States;

(D) additional license requirements, for a launch vehicle

carrying a human being for compensation or hire, necessary to

protect the health and safety of crew or space flight

participants, only if such requirements are imposed pursuant to

final regulations issued in accordance with subsection (c); and

(E) regulations establishing criteria for accepting or

rejecting an application for a license or permit under this

chapter within 60 days after receipt of such application.

(3) The Secretary may waive a requirement, including the

requirement to obtain a license, for an individual applicant if the

Secretary decides that the waiver is in the public interest and will

not jeopardize the public health and safety, safety of property, and

national security and foreign policy interests of the United States.

The Secretary may not grant a waiver under this paragraph that

would permit the launch or reentry of a launch vehicle or a reentry

vehicle without a license or permit if a human being will be on

board.

(4) The holder of a license or a permit under this chapter may

launch or reenter crew only if—

(A) the crew has received training and has satisfied

medical or other standards specified in the license or permit in

accordance with regulations promulgated by the Secretary;

(B) the holder of the license or permit has informed any

individual serving as crew in writing, prior to executing any

contract or other arrangement to employ that individual (or, in

the case of an individual already employed as of the date of

enactment of the Commercial Space Launch Amendments Act

of 2004 [enacted Dec. 23, 2004], as early as possible, but in

any event prior to any launch in which the individual will

participate as crew), that the United States Government has

not certified the launch vehicle as safe for carrying crew or

space flight participants; and

(C) the holder of the license or permit and crew have

complied with all requirements of the laws of the United States

that apply to crew.

(5) The holder of a license or a permit under this chapter may

launch or reenter a space flight participant only if--

(A) in accordance with regulations promulgated by the

Secretary, the holder of the license or permit has informed the

space flight participant in writing about the risks of the launch

and reentry, including the safety record of the launch or reentry

vehicle type, and the Secretary has informed the space flight

participant in writing of any relevant information related to risk

or probable loss during each phase of flight gathered by the

Secretary in making the determination required by section

70112(a)(2) and (c);

(B) the holder of the license or permit has informed any

space flight participant in writing, prior to receiving any

compensation from that space flight participant or (in the case

of a space flight participant not providing compensation)

otherwise concluding any agreement to fly that space flight

participant, that the United States Government has not certified

the launch vehicle as safe for carrying crew or space flight

participants;

(C) in accordance with regulations promulgated by the

Secretary, the space flight participant has provided written

informed consent to participate in the launch and reentry and

written certification of compliance with any regulations

promulgated under paragraph (6)(A); and

(D) the holder of the license or permit has complied with

any regulations promulgated by the Secretary pursuant to

paragraph (6).

(6)(A) The Secretary may issue regulations requiring space

flight participants to undergo an appropriate physical examination

prior to a launch or reentry under this chapter. This subparagraph

shall cease to be in effect three years after the date of enactment

of the Commercial Space Launch Amendments Act of 2004

[enacted Dec. 23, 2004].

(B) The Secretary may issue additional regulations setting

reasonable requirements for space flight participants, including

medical and training requirements. Such regulations shall not be

effective before the expiration of 3 years after the date of

enactment of the Commercial Space Launch Amendments Act of

2004 [enacted Dec. 23, 2004].

(c) SAFETY REGULATIONS.—(1) The Secretary may issue

regulations governing the design or operation of a launch vehicle to

protect the health and safety of crew and space flight participants.

(2) Regulations issued under this subsection shall—

(A) describe how such regulations would be applied when

the Secretary is determining whether to issue a license under

this chapter;

(B) apply only to launches in which a vehicle will be

carrying a human being for compensation or hire;

(C) be limited to restricting or prohibiting design features or

operating practices that--

(i) have resulted in a serious or fatal injury (as defined

in 49 CFR 830, as in effect on November 10, 2004) to crew

or space flight participants during a licensed or permitted

commercial human space flight; or

(ii) contributed to an unplanned event or series of

events during a licensed or permitted commercial human

space flight that posed a high risk of causing a serious or

fatal injury (as defined in 49 CFR 830, as in effect on

November 10, 2004) to crew or space flight participants;

and

(D) be issued with a description of the instance or

instances when the design feature or operating practice being
251

restricted or prohibited contributed to a result or event

described in subparagraph (C).

(3) Beginning 8 years after the date of enactment of the

Commercial Space Launch Amendments Act of 2004 [enacted

Dec. 23, 2004], the Secretary may propose regulations under this

subsection without regard to paragraph (2)(C) and (D). Any such

regulations shall take into consideration the evolving standards of

safety in the commercial space flight industry.

(4) Nothing in this subsection shall be construed to limit the

authority of the Secretary to issue requirements or regulations to

protect the public health and safety, safety of property, national

security interests, and foreign policy interests of the United States.

(d) PROCEDURES AND TIMETABLES.—The Secretary shall

establish procedures and timetables that expedite review of a

license or permit application and reduce the regulatory burden for

an applicant.

§ 70105a. Experimental permits

(a) A person may apply to the Secretary of Transportation for

an experimental permit under this section in the form and manner

the Secretary prescribes. Consistent with the protection of the

public health and safety, safety of property, and national security

and foreign policy interests of the United States, the Secretary, not

later than 120 days after receiving an application pursuant to this

section, shall issue a permit if the Secretary decides in writing that

the applicant complies, and will continue to comply, with this

chapter and regulations prescribed under this chapter. The

Secretary shall inform the applicant of any pending issue and

action required to resolve the issue if the Secretary has not made a

decision not later than 90 days after receiving an application. The

Secretary shall transmit to the Committee on Science of the House

of Representatives and Committee on Commerce, Science, and

Transportation of the Senate a written notice not later than 15 days

after any occurrence when the Secretary has failed to act on a

permit within the deadline established by this section.

(b) In carrying out subsection (a), the Secretary may establish

procedures for safety approvals of launch vehicles, reentry

vehicles, safety systems, processes, services, or personnel that

may be used in conducting commercial space launch or reentry

activities pursuant to a permit.

(c) In order to encourage the development of a commercial

space flight industry, the Secretary may when issuing permits use

the authority granted under section 70105(b)(2)(C).

(d) The Secretary may issue a permit only for reusable

suborbital rockets that will be launched or reentered solely for—

(1) research and development to test new design concepts, new equipment, or new operating techniques;

(2) showing compliance with requirements as part of the

process for obtaining a license under this chapter; or

(3) crew training prior to obtaining a license for a launch or

reentry using the design of the rocket for which the permit

would be issued.

(e) Permits issued under this section shall—

(1) authorize an unlimited number of launches and

reentries for a particular suborbital rocket design for the uses

described in subsection (d); and

(2) specify the type of modifications that may be made to

the suborbital rocket without changing the design to an extent

that would invalidate the permit.

(f) Permits shall not be transferable.

(g) A permit may not be issued for, and a permit that has

already been issued shall cease to be valid for, a particular design

for a reusable suborbital rocket after a license has been issued for

the launch or reentry of a rocket of that design.

(h) No person may operate a reusable suborbital rocket under

a permit for carrying any property or human being for

compensation or hire.

(i) For the purposes of sections 70106, 70107, 70108, 70109,

70110, 70112, 70115, 70116, 70117, and 70121 of this chapter—

(1) a permit shall be considered a license;

(2) the holder of a permit shall be considered a licensee;

(3) a vehicle operating under a permit shall be considered

to be licensed; and

(4) the issuance of a permit shall be considered licensing.

This subsection shall not be construed to allow the transfer of a

permit.

§ 70106. Monitoring activities

(a) GENERAL REQUIREMENTS.—A licensee under this chapter

must allow the Secretary of Transportation to place an officer or

employee of the United States Government or another individual as

an observer at a launch site or reentry site the licensee uses, at a

production facility or assembly site a contractor of the licensee

uses to produce or assemble a launch vehicle or reentry vehicle, at

a sight used for crew or space flight participant training or at a site

at which a payload is integrated with a launch vehicle or reentry

vehicle. The observer will monitor the activity of the licensee or

contractor at the time and to the extent the Secretary considers

reasonable to ensure compliance with the license or to carry out

the duties of the Secretary under section 70104(c), 70105, and

70105a of this title. A licensee must cooperate with an observer

carrying out this subsection.

(b) CONTRACTS.—To the extent provided in advance in an

appropriation law, the Secretary may make a contract with a

person to carry out subsection (a) of this section.
252

§ 70107. Effective periods, and modifications, suspensions,

and revocations, of licenses

(a) EFFECTIVE PERIODS OF LICENSES.—The Secretary of

Transportation shall specify the period for which a license issued or

transferred under this chapter is in effect.

(b) MODIFICATIONS.—(1) On the initiative of the Secretary or on

application of the licensee, the Secretary may modify a license

issued or transferred under this chapter if the Secretary decides

the modification will comply with this chapter.

(2) The Secretary shall modify a license issued or transferred

under this chapter whenever a modification is needed for the

license to be in conformity with a regulation that was issued

pursuant to section 70105(c) after the issuance of the license. This

paragraph shall not apply to permits.

(c) SUSPENSIONS AND REVOCATIONS.—The Secretary may

suspend or revoke a license if the Secretary decides that—

(1) the licensee has not complied substantially with a

requirement of this chapter or a regulation prescribed under

this chapter; or

(2) the suspension or revocation is necessary to protect the

public health and safety, the safety of property, or a national

security or foreign policy interest of the United States.

(d) ADDITIONAL SUSPENSIONS.—(1) The Secretary may suspend

a license when a previous launch or reentry under the license has

resulted in a serious or fatal injury (as defined in 49 CFR 830, as in

effect on November 10, 2004) to crew or space flight participants

and the Secretary has determined that continued operations under

the license are likely to cause additional serious or fatal injury (as

defined in 49 CFR 830, as in effect on November 10, 2004) to crew

or space flight participants.

(2) Any suspension imposed under this subsection shall be for

as brief a period as possible and, in any event, shall cease when

the Secretary—

(A) has determined that the licensee has taken sufficient

steps to reduce the likelihood of a recurrence of the serious or

fatal injury; or

(B) has modified the license pursuant to subsection (b) to

sufficiently reduce the likelihood of a recurrence of the serious

or fatal injury.

(3) This subsection shall not apply to permits.

(e) EFFECTIVE PERIODS OF MODIFICATIONS, SUSPENSIONS, AND

REVOCATIONS.—Unless the Secretary specifies otherwise, a

modification, suspension, or revocation under this section takes

effect immediately and remains in effect during a review under

section 70110 of this title.

(f) NOTIFICATION.—The Secretary shall notify the licensee in

writing of the decision of the Secretary under this section and any

action the Secretary takes or proposes to take based on the

decision.

§ 70108. Prohibition, suspension, and end of launches, operation of launch sites and reentry sites, and

reentries

(a) GENERAL AUTHORITY.—The Secretary of Transportation

may prohibit, suspend, or end immediately the launch of a launch

vehicle or the operation of a launch site or reentry site, or reentry of

a reentry vehicle, licensed under this chapter if the Secretary

decides the launch or operation or reentry is detrimental to the

public health and safety, the safety of property, or a national

security or foreign policy interest of the United States.

(b) EFFECTIVE PERIODS OF ORDERS.—An order under this sec- tion takes effect immediately and remains in effect during a review

under section 70110 of this title.

§ 70109. Preemption of scheduled launches or reentries

(a) GENERAL.—With the cooperation of the Secretary of

Defense and the Administrator of the National Aeronautics and

Space Administration, the Secretary of Transportation shall act to

ensure that a launch or reentry of a payload is not preempted from

access to a United States Government launch site, reentry site, or

launch property, except for imperative national need, when a

launch date commitment or reentry date commitment from the

Government has been obtained for a launch or reentry licensed

under this chapter. A licensee or transferee preempted from

access to a launch site, reentry site, or launch property does not

have to pay the Government any amount for launch services, or

services related to a reentry, attributable only to the scheduled

launch or reentry prevented by the preemption.

(b) IMPERATIVE NATIONAL NEED DECISIONS.—In consultation with

the Secretary of Transportation, the Secretary of Defense or the

Administrator shall decide when an imperative national need

requires preemption under subsection (a) of this section. That

decision may not be delegated.

(c) REPORTS.—In cooperation with the Secretary of

Transportation, the Secretary of Defense or the Administrator, as

appropriate, shall submit to Congress not later than 7 days after a

decision to preempt under subsection (a) of this section, a report

that includes an explanation of the circumstances justifying the

decision and a schedule for ensuring the prompt launching or

reentry of a preempted payload.

§ 70109a. Space advertising

(a) LICENSING.—Notwithstanding the provisions of this chapter

or any other provision of law, the Secretary may not, for the launch

of a payload containing any material to be used for the purposes of

obtrusive space advertising—

(1) issue or transfer a license under this chapter; or

(2) waive the license requirements of this chapter.

(b) LAUNCHING.—No holder of a license under this chapter may
253

launch a payload containing any material to be used for purposes

of obtrusive space advertising.

(c) COMMERCIAL SPACE ADVERTISING.—Nothing in this section

shall apply to nonobtrusive commercial space advertising, including

advertising on—

(1) commercial space transportation vehicles;

(2) space infrastructure payloads;

(3) space launch facilities; and

(4) launch support facilities.

§ 70110. Administrative hearings and judicial review

(a) ADMINISTRATIVE HEARINGS.—The Secretary of

Transportation shall provide an opportunity for a hearing on the

record to—

(1) an applicant under this chapter, for a decision of the

Secretary under section 70105(a) or 70105a of this title to issue

or transfer a license with terms or deny the issuance or transfer

of a license;

(2) an owner or operator of a payload under this chapter,

for a decision of the Secretary under section 70104(c) of this

title to prevent the launch or reentry of the payload; and

(3) a licensee under this chapter, for a decision of the

Secretary under—

(A) section 70107(b) or (c) of this title to modify,

suspend, or revoke a license; or

(B) section 70108(a) of this title to prohibit, suspend, or

end a launch or operation of a launch site or reentry site, or

reentry of a reentry vehicle, licensed by the Secretary.

(b) Judicial Review.—A final action of the Secretary under this

chapter is subject to judicial review as provided in chapter 7 of title

5.

§ 70111. Acquiring United States Government property and

services

(a) GENERAL REQUIREMENTS AND CONSIDERATIONS.—(1) The

Secretary of Transportation shall facilitate and encourage the

acquisition by the private sector and State governments of—

(A) launch or reentry property of the United States

Government that is excess or otherwise is not needed for

public use; and

(B) launch services and reentry services, including utilities,

of the Government otherwise not needed for public use.

(2) In acting under paragraph (1) of this subsection, the

Secretary shall consider the commercial availability on reasonable

terms of substantially equivalent launch property or launch services

or reentry services from a domestic source, whether such source is

located on or off a Federal range.

(b) PRICE.—(1) In this subsection, “direct costs” means the

actual costs that—

(A) can be associated unambiguously with a commercial

launch or reentry effort; and

(B) the Government would not incur if there were no

commercial launch or reentry effort.

(2) In consultation with the Secretary, the head of the executive

agency providing the property or service under subsection (a) of

this section shall establish the price for the property or service. The

price for—

(A) acquiring launch property by sale or transaction instead

of sale is the fair market value;

(B) acquiring launch property (except by sale or transaction

instead of sale) is an amount equal to the direct costs, including

specific wear and tear and property damage, the Government

incurred because of acquisition of the property; and

(C) launch services or reentry services is an amount equal

to the direct costs, including the basic pay of Government

civilian and contractor personnel, the Government incurred

because of acquisition of the services.

(3) The Secretary shall ensure the establishment of uniform

guidelines for, and consistent implementation of, this section by all

Federal agencies.

(c) COLLECTION BY SECRETARY.—The Secretary may collect a

payment under this section with the consent of the head of the

executive agency establishing the price. Amounts collected under

this subsection shall be deposited in the Treasury. Amounts

(except for excess launch property) shall be credited to the

appropriation from which the cost of providing the property or

services was paid.

(d) COLLECTION BY OTHER GOVERNMENTAL HEADS.—The head

of a department, agency, or instrumentality of the Government may

collect a payment for an activity involved in producing a launch

vehicle or reentry vehicle, or the payload of either, for launch or

reentry if the activity was agreed to by the owner or manufacturer

of the launch vehicle, reentry vehicle, or payload.

§ 70112. Liability insurance and financial responsibility

requirements

(a) GENERAL REQUIREMENTS.—(1) When a launch or reentry

license is issued or transferred under this chapter, the licensee or

transferee shall obtain liability insurance or demonstrate financial

responsibility in amounts to compensate for the maximum probable

loss from claims by—

(A) a third party for death, bodily injury, or property damage

or loss resulting from an activity carried out under the license;

and

(B) the United States Government against a person for

damage or loss to Government property resulting from an

activity carried out under the license.

(2) The Secretary of Transportation shall determine the

amounts required under paragraph (1)(A) and (B) of this
254

subsection, after consulting with the Administrator of the National

Aeronautics and Space Administration, the Secretary of the Air

Force, and the heads of other appropriate executive agencies.

(3) For the total claims related to one launch or reentry, a

licensee or transferee is not required to obtain insurance or

demonstrate financial responsibility of more than—

(A)(i) $500,000,000 under paragraph (1)(A) of this

subsection; or

(ii) $100,000,000 under paragraph (1)(B) of this

subsection; or

(B) the maximum liability insurance available on the world

market at reasonable cost if the amount is less than the

applicable amount in clause (A)(i) or (ii) of this paragraph.

(4) An insurance policy or demonstration of financial

responsibility under this subsection shall protect the following, to

the extent of their potential liability for involvement in launch

services or reentry services, at no cost to the Government:

(A) the Government.

(B) executive agencies and personnel, contractors, and

subcontractors of the Government.

(C) contractors, subcontractors, and customers of the

licensee or transferee.

(D) contractors and subcontractors of the customer.

(b) RECIPROCAL WAIVER OF CLAIMS.—(1) A launch or reentry

license issued or transferred under this chapter shall contain a

provision requiring the licensee or transferee to make a reciprocal

waiver of claims with its contractors, subcontractors, and

customers, and contractors and subcontractors of the customers,

involved in launch services or reentry services under which each

party to the waiver agrees to be responsible for property damage

or loss it sustains, or for personal injury to, death of, or property

damage or loss sustained by its own employees resulting from an

activity carried out under the applicable license.

(2) The Secretary of Transportation shall make, for the

Government, executive agencies of the Government involved in

launch services or reentry services, and contractors and

subcontractors involved in launch services or reentry services, a

reciprocal waiver of claims with the licensee or transferee,

contractors, subcontractors, crew, space flight participants, and

customers of the licensee or transferee, and contractors and

subcontractors of the customers, involved in launch services or

reentry services under which each party to the waiver agrees to be

responsible for property damage or loss it sustains, or for personal

injury to, death of, or property damage or loss sustained by its own

employees or space flight participants, resulting from an activity

carried out under the applicable license. The waiver applies only to

the extent that claims are more than the amount of insurance or

demonstration of financial responsibility required under subsection

(a)(1)(B) of this section. After consulting with the Administrator and

the Secretary of the Air Force, the Secretary of Transportation may

waive, for the Government and a department, agency, and

instrumentality of the Government, the right to recover damages for

damage or loss to Government property to the extent insurance is

not available because of a policy exclusion the Secretary of

Transportation decides is usual for the type of insurance involved.

(c) DETERMINATION OF MAXIMUM PROBABLE LOSSES.—The

Secretary of Transportation shall determine the maximum probable

losses under subsection (a)(1)(A) and (B) of this section associated

with an activity under a license not later than 90 days after a

licensee or transferee requires a determination and submits all

information the Secretary requires. The Secretary shall amend the

determination as warranted by new information.

(d) ANNUAL REPORT.—(1) Not later than November 15 of each

year, the Secretary of Transportation shall submit to the Committee

on Commerce, Science, and Transportation of the Senate and the

Committee on Science of the House of Representatives a report on

current determinations made under subsection (c) of this section

related to all issued licenses and the reasons for the

determinations.

(2) Not later than May 15 of each year, the Secretary of

Transportation shall review the amounts specified in subsection

(a)(3)(A) of this section and submit a report to Congress that

contains proposed adjustments in the amounts to conform with

changed liability expectations and availability of insurance on the

world market. The proposed adjustment takes effect 30 days after

a report is submitted.

(e) LAUNCHES OR REENTRIES INVOLVING GOVERNMENT FACILITIES

AND PERSONNEl.—The Secretary of Transportation shall establish

requirements consistent with this chapter for proof of financial

responsibility and other assurances necessary to protect the

Government and its executive agencies and personnel from

liability, death, bodily injury, or property damage or loss as a result

of a launch or operation of a launch site or reentry site or a reentry

involving a facility or personnel of the Government. The Secretary

may not relieve the Government of liability under this subsection for

death, bodily injury, or property damage or loss resulting from the

willful misconduct of the Government or its agents.

(f) COLLECTION AND CREDITING PAYMENTS.—The head of a

department, agency, or instrumentality of the Government shall

collect a payment owed for damage or loss to Government

property under its jurisdiction or control resulting from an activity

carried out under a launch or reentry license issued or transferred

under this chapter. The payment shall be credited to the current

applicable appropriation, fund, or account of the department,

agency, or instrumentality.
255

§ 70113. Paying claims exceeding liability insurance and

financial responsibility requirements

(a) GENERAL REQUIREMENTS.—(1) To the extent provided in

advance in an appropriation law or to the extent additional

legislative authority is enacted providing for paying claims in a

compensation plan submitted under subsection (d) of this section,

the Secretary of Transportation shall provide for the payment by

the United States Government of a successful claim (including

reasonable litigation or settlement expenses) of a third party

against a licensee or transferee under this chapter, a contractor,

subcontractor, or customer of the licensee or transferee, or a

contractor or subcontractor of a customer, but not against a space

flight participant, resulting from an activity carried out under the

license issued or transferred under this chapter for death, bodily

injury, or property damage or loss resulting from an activity carried

out under the license. However, claims may be paid under this

section only to the extent the total amount of successful claims

related to one launch or reentry—

(A) is more than the amount of insurance or demonstration

of financial responsibility required under section 70112(a)(1)(A)

of this title; and

(B) is not more than $1,500,000,000 (plus additional

amounts necessary to reflect inflation occurring after January 1,

1989) above that insurance or financial responsibility amount.

(2) The Secretary may not provide for paying a part of a claim

for which death, bodily injury, or property damage or loss results

from willful misconduct by the licensee or transferee. To the extent

insurance required under section 70112(a)(1)(A) of this title is not

available to cover a successful third party liability claim because of

an insurance policy exclusion the Secretary decides is usual for the

type of insurance involved, the Secretary may provide for paying

the excluded claims without regard to the limitation contained in

section 70112(a)(1).

(b) NOTICE, PARTICIPATION, AND APPROVAL.—Before a payment

under subsection (a) of this section is made—

(1) notice must be given to the Government of a claim, or a

civil action related to the claim, against a party described in

subsection (a)(1) of this section for death, bodily injury, or

property damage or loss;

(2) the Government must be given an opportunity to

participate or assist in the defense of the claim or action; and

(3) the Secretary must approve any part of a settlement to

be paid out of appropriations of the Government.

(c) WITHHOLDING PAYMENTS.—The Secretary may withhold a

payment under subsection (a) of this section if the Secretary

certifies that the amount is not reasonable. However, the Secretary

shall deem to be reasonable the amount of a claim finally decided

by a court of competent jurisdiction.

(d) SURVEYS, REPORTS, AND COMPENSATION PLANS.—(1) If as a

result of an activity carried out under a license issued or transferred

under this chapter the total of claims related to one launch or

reentry is likely to be more than the amount of required insurance

or demonstration of financial responsibility, the Secretary shall—

(A) survey the causes and extent of damage; and

(B) submit expeditiously to Congress a report on the results

of the survey.

(2) Not later than 90 days after a court determination indicates

that the liability for the total of claims related to one launch or

reentry may be more than the required amount of insurance or

demonstration of financial responsibility, the President, on the

recommendation of the Secretary, shall submit to Congress a

compensation plan that—

(A) outlines the total dollar value of the claims;

(B) recommends sources of amounts to pay for the claims;

(C) includes legislative language required to carry out the

plan if additional legislative authority is required; and

(D) for a single event or incident, may not be for more than

$1,500,000,000.

(3) A compensation plan submitted to Congress under

paragraph (2) of this subsection shall—

(A) have an identification number; and

(B) be submitted to the Senate and the House of

Representatives on the same day and when the Senate and

House are in session.

(e) CONGRESSIONAL RESOLUTIONS.—(1) In this subsection,

“resolution”—

(A) means a joint resolution of Congress the matter after

the resolving clause of which is as follows: “That the Congress

approves the compensation plan numbered XXXXX submitted

to the Congress on XXXXX XX, 20XX.”, with the blank spaces

being filled appropriately; but

(B) does not include a resolution that includes more than

one compensation plan.

(2) The Senate shall consider under this subsection a

compensation plan requiring additional appropriations or legislative

authority not later than 60 calendar days of continuous session of

Congress after the date on which the plan is submitted to

Congress.

(3) A resolution introduced in the Senate shall be referred

immediately to a committee by the President of the Senate. All

resolutions related to the same plan shall be referred to the same

committee.

(4)(A) If the committee of the Senate to which a resolution has

been referred does not report the resolution within 20 calendar

days after it is referred, a motion is in order to discharge the

committee from further consideration of the resolution or to

discharge the committee from further consideration of the plan.

(B) A motion to discharge may be made only by an individual

favoring the resolution and is highly privileged (except that the
256

motion may not be made after the committee has reported a

resolution on the plan). Debate on the motion is limited to one hour, to be divided equally between those favoring and those opposing

the resolution. An amendment to the motion is not in order. A

motion to reconsider the vote by which the motion is agreed to or

disagreed to is not in order.

(C) If the motion to discharge is agreed to or disagreed to, the

motion may not be renewed and another motion to discharge the

committee from another resolution on the same plan may not be

made.

(5)(A) After a committee of the Senate reports, or is discharged

from further consideration of, a resolution, a motion to proceed to

the consideration of the resolution is in order at any time, even

though a similar previous motion has been disagreed to. The

motion is highly privileged and is not debatable. An amendment to

the motion is not in order. A motion to reconsider the vote by which

the motion is agreed to or disagreed to is not in order.

(B) Debate on the resolution referred to in subparagraph (A) of

this paragraph is limited to not more than 10 hours, to be divided

equally between those favoring and those opposing the resolution.

A motion further to limit debate is not debatable. An amendment to, or motion to recommit, the resolution is not in order. A motion to

reconsider the vote by which the resolution is agreed to or

disagreed to is not in order.

(6) The following shall be decided in the Senate without

debate:

(A) a motion to postpone related to the discharge from

committee.

(B) a motion to postpone consideration of a resolution.

(C) a motion to proceed to the consideration of other

business.

(D) an appeal from a decision of the chair related to the

application of the rules of the Senate to the procedures related

to a resolution.

(f) APPLICATION.—This section applies to a license issued or

transferred under this chapter for which the Secretary receives a

complete and valid application not later than December 31, 2004.

This section does not apply to permits.

§ 70114. Disclosing information

The Secretary of Transportation, an officer or employee of the

United States Government, or a person making a contract with the

Secretary under section 70106(b) of this title may disclose

information under this chapter that qualifies for an exemption under

section 552(b)(4) of title 5 or is designated as confidential by the

person or head of the executive agency providing the information

only if the Secretary decides withholding the information is contrary

to the public or national interest.

§ 70115. Enforcement and penalty

(a) PROHIBITIONS.—A person may not violate this chapter, a

regulation prescribed under this chapter, or any term of a license

issued or transferred under this chapter.

(b) GENERAL AUTHORITY.—(1) In carrying out this chapter, the

Secretary of Transportation may—

(A) conduct investigations and inquiries;

(B) administer oaths;

(C) take affidavits; and

(D) under lawful process—

(i) enter at a reasonable time a launch site, reentry site,

production facility, assembly site of a launch vehicle or

reentry vehicle, crew or space flight participant training site,

or site at which a payload is integrated with a launch

vehicle or reentry vehicle to inspect an object to which this

chapter applies or a record or report the Secretary requires

be made or kept under this chapter; and

(ii) seize the object, record, or report when there is

probable cause to believe the object, record, or report was

used, is being used, or likely will be used in violation of this

chapter.

(2) The Secretary may delegate a duty or power under this

chapter related to enforcement to an officer or employee of another

executive agency with the consent of the head of the agency.

(c) CIVIL PENALTY.—(1) After notice and an opportunity for a

hearing on the record, a person the Secretary finds to have

violated subsection (a) of this section is liable to the United States

Government for a civil penalty of not more than $100,000. A

separate violation occurs for each day the violation continues.

(2) In conducting a hearing under paragraph (1) of this

subsection, the Secretary may—

(A) subpena witnesses and records; and

(B) enforce a subpena in an appropriate district court of the

United States.

(3) The Secretary shall impose the civil penalty by written

notice. The Secretary may compromise or remit a penalty imposed, or that may be imposed, under this section.

(4) The Secretary shall recover a civil penalty not paid after the

penalty is final or after a court enters a final judgment for the

Secretary.

§ 70116. Consultation

(a) MATTERS AFFECTING NATIONAL SECURITY.—The Secretary

of Transportation shall consult with the Secretary of Defense on a

matter under this chapter affecting national security. The Secretary

of Defense shall identify and notify the Secretary of Transportation

of a national security interest relevant to an activity under this

chapter.

(b) MATTERS AFFECTING FOREIGN POLICY.—The Secretary of
257

Transportation shall consult with the Secretary of State on a matter

under this chapter affecting foreign policy. The Secretary of State

shall identify and notify the Secretary of Transportation of a foreign

policy interest or obligation relevant to an activity under this

chapter.

(c) OTHER MATTERS.—In carrying out this chapter, the

Secretary of Transportation shall consult with the head of another

executive agency—

(1) to provide consistent application of licensing

requirements under this chapter;

(2) to ensure fair treatment for all license applicants; and

(3) when appropriate.

§ 70117. Relationship to other executive agencies, laws, and

international obligations

(a) EXECUTIVE AGENCIES.—Except as provided in this chapter,

a person is not required to obtain from an executive agency a

license, approval, waiver, or exemption to launch a launch vehicle

or operate a launch site or reentry site, or to reenter a reentry

vehicle.

(b) FEDERAL COMMUNICATIONS COMMISSION AND SECRETARY OF

COMMERCE.—This chapter does not affect the authority of—

(1) the Federal Communications Commission under the

Communications Act of 1934 (47 U.S.C. 151 et seq.); or

(2) the Secretary of Commerce under the Land Remote

Sensing Policy Act of 1992 (15 U.S.C. 5601 et seq.).

(c) STATES AND POLITICAL SUBDIVISIONS.—A State or political

subdivision of a State—

(1) may not adopt or have in effect a law, regulation,

standard, or order inconsistent with this chapter; but

(2) may adopt or have in effect a law, regulation, standard,

or order consistent with this chapter that is in addition to or

more stringent than a requirement of, or regulation prescribed

under, this chapter.

(d) CONSULTATION.—The Secretary of Transportation is

encouraged to consult with a State to simplify and expedite the

approval of a space launch or reentry activity.

(e) FOREIGN COUNTRIES.—The Secretary of Transportation

shall—

(1) carry out this chapter consistent with an obligation the

United States Government assumes in a treaty, convention, or

agreement in force between the Government and the

government of a foreign country; and

(2) consider applicable laws and requirements of a foreign

country when carrying out this chapter.

(f) LAUNCH NOT AN EXPORT; REENTRY NOT AN IMPORT.—A launch

vehicle, reentry vehicle, or payload that is launched or reentered is

not, because of the launch or reentry, an export or import,

respectively, for purposes of a law controlling exports or imports,

except that payloads launched pursuant to foreign trade zone

procedures as provided for under the Foreign Trade Zones Act (19

U.S.C. 81a–81u) shall be considered exports with regard to

customs entry.

(g) NONAPPLICATION.—This chapter does not apply to—

(1) a launch, reentry, operation of a launch vehicle or

reentry vehicle, operation of a launch site or reentry site, or

other space activity the Government carries out for the

Government; or

(2) planning or policies related to the launch, reentry, operation, or activity.

§ 70118. User fees

The Secretary of Transportation may collect a user fee for a

regulatory or other service conducted under this chapter only if

specifically authorized by this chapter.

§ 70119. Office of Commercial Space Transportation

There are authorized to be appropriated to the Secretary of

Transportation for the activities of the Office of the Associate

Administrator for Commercial Space Transportation—

(1) $11,941,000 for fiscal year 2005;

(2) $12,299,000 for fiscal year 2006;

(3) $12,668,000 for fiscal year 2007;

(4) $13,048,000 for fiscal year 2008; and

(5) $13,440,000 for fiscal year 2009.

§ 70120. Regulations

(a) IN GENERAL.—The Secretary of Transportation, within 9

months after the date of the enactment of this section [enacted

Oct. 28, 1998], shall issue regulations to carry out this chapter that

include—

(1) guidelines for industry and State governments to obtain

sufficient insurance coverage for potential damages to third

parties;

(2) procedures for requesting and obtaining licenses to

launch a commercial launch vehicle;

(3) procedures for requesting and obtaining operator

licenses for launch;

(4) procedures for requesting and obtaining launch site

operator licenses; and

(5) procedures for the application of government

indemnification.

(b) REENTRY.—The Secretary of Transportation, within 6

months after the date of the enactment of this section [enacted

Oct. 28, 1998], shall issue a notice of proposed rulemaking to

carry out this chapter that includes—

(1) procedures for requesting and obtaining licenses to

reenter a reentry vehicle;

(2) procedures for requesting and obtaining operator
258

licenses for reentry; and

(3) procedures for requesting and obtaining reentry site

operator licenses.

(c) AMENDMENTS.—(1) Not later than 12 months after the date

of enactment of the Commercial Space Launch Amendments Act

of 2004 [enacted Dec. 23, 2004], the Secretary shall publish

proposed regulations to carry out that Act, including regulations

relating to crew, space flight participants, and permits for launch or

reentry of reusable suborbital rockets. Not later than 18 months

after such date of enactment, the Secretary shall issue final

regulations.

(2)(A) Starting 3 years after the date of enactment of the

Commercial Space Launch Amendments Act of 2004 [enacted

Dec. 23, 2004], the Secretary may issue final regulations changing

the definition of suborbital rocket under this chapter. No such

regulation may take effect until 180 days after the Secretary has

submitted the regulation to the Congress.

(B) The Secretary may issue regulations under this paragraph

only if the Secretary has determined that the definition in section

70102 does not describe, or will not continue to describe, all

appropriate vehicles and only those vehicles. In making that

determination, the Secretary shall take into account the evolving

nature of the commercial space launch industry.

(d) EFFECTIVE DATE.—(1) Licenses for the launch or reentry of

launch vehicles or reentry vehicles with human beings on board

and permits may be issued by the Secretary prior to the issuance

of the regulations described in subsection (c).

(2) As soon as practicable after the date of enactment of the

Commercial Space Launch Amendments Act of 2004 [enacted

Dec. 23, 2004], the Secretary shall issue guidelines or advisory

circulars to guide the implementation of that Act until regulations

are issued.

(3) Notwithstanding paragraphs (1) and (2), no licenses for the

launch or reentry of launch vehicles or reentry vehicles with human

beings on board or permits may be issued starting three years after

the date of enactment of the Commercial Space Launch

Amendments Act of 2004 [enacted Dec. 23, 2004] unless the final

regulations described in subsection (c) have been issued.

§ 70121. Report to Congress

The Secretary of Transportation shall submit to Congress an

annual report to accompany the President’s budget request that—

(1) describes all activities undertaken under this chapter,

including a description of the process for the application for and

approval of licenses under this chapter and recommendations

for legislation that may further commercial launches and

reentries; and

(2) reviews the performance of the regulatory activities and

the effectiveness of the Office of Commercial Space

Transportation.

CHAPTER 703—SPACE TRANSPORTATION INFRASTRUCTURE

MATCHING GRANTS

Sec.

70101. Definitions.

70102. Grant authority.

70103. Grant applications.

70104. Environmental requirements.

70105. Authorization of appropriations.

§ 70301. Definitions

In this chapter—

(1) the definitions in section 502 of the National

Aeronautics and Space Administration Authorization Act, Fiscal

Year 1993 (15 U.S.C. 5802) apply.

(2) “commercial space transportation infrastructure

development” includes—

(A) construction, improvement, design, and engineering

of space transportation infrastructure in the United States;

and

(B) technical studies to define how new or enhanced

space transportation infrastructure can best meet the needs

of the United States commercial space transportation

industry.

(3) “project” means a project (or separate projects

submitted together) to carry out commercial space

transportation infrastructure development, including the

combined submission of all projects to be undertaken at a

particular site in a fiscal year.

(4) “project grant” means a grant of an amount by the

Secretary of Transportation to a sponsor for one or more

projects.

(5) “public agency” means a State or an agency of a State,

a political subdivision of a State, or a tax-supported

organization.

(6) “sponsor” means a public agency that, individually or

jointly with one or more other public agencies, submits to the

Secretary under this chapter an application for a project grant.

§ 70302. Grant authority

(a) GENERAL AUTHORITY.—To ensure the resiliency of the

space transportation infrastructure of the United States, the

Secretary of Transportation may make project grants to sponsors

as provided in this chapter.

(b) LIMITATIONS.—The Secretary may make a project grant

under this chapter only if—

(1) at least 10 percent of the total cost of the project will be

paid by the private sector; and

(2) the grant will not be for more than 50 percent of the

total cost of the project.
259

§ 70303. Grant applications

(a) GENERAL.—A sponsor may submit to the Secretary of

Transportation an application for a project grant. The application

must state the project to be undertaken and be in the form and

contain the information the Secretary requires.

(b) CONSIDERATIONS AND CONSULTATION.—(1) In selecting

proposed projects for grants under this section, the Secretary of

Transportation shall consider—

(A) the contribution of the project to industry capabilities

that serve the United States Government’s space

transportation needs;

(B) the extent of industry’s financial contribution to the

project;

(C) the extent of industry’s participation in the project;

(D) the positive impact of the project on the international

competitiveness of the United States space transportation

industry;

(E) the extent of State contributions to the project; and

(F) the impact of the project on launch operations and

other activities at Government launch ranges.

(2) The Secretary of Transportation shall consult with the

Secretary of Defense, the Administrator of the National Space and

Aeronautics Administration, and the heads of other appropriate

agencies of the Government about paragraph (1)(A) and (F) of this

subsection.

(c) REQUIREMENTS.—The Secretary of Transportation may

approve an application only if the Secretary is satisfied that—

(1) the project will contribute to the purposes of this

chapter;

(2) the project is reasonably consistent with plans (existing

at the time of approval of the project) of public agencies that

are—

(A) authorized by the State in which the project is

located; and

(B) responsible for the development of the area

surrounding the project site;

(3) if the application proposes to use Government property,

the specific consent of the head of the appropriate agency has

been obtained;

(4) the project will be completed without unreasonable

delay;

(5) the sponsor submitting the application has the legal

authority to engage in the project; and

(6) any additional requirements prescribed by the Secretary

have been met.

(d) PREFERENCE FOR INDUSTRY CONTRIBUTIONS.—The Secretary

of Transportation shall give preference to applications for projects

for which there will be greater industry financial contributions, all

other factors being equal.

§ 70304. Environmental requirements

(a) POLICY.—It is the policy of the United States that projects

selected under this chapter shall provide for the protection and

enhancement of the natural resources and the quality of the

environment of the United States. In carrying out this policy, the

Secretary of Transportation shall consult with the Secretary of the

Interior and the Administrator of the Environmental Protection

Agency about a project that may have a significant effect on natural

resources, including fish and wildlife, natural, scenic, and

recreational assets, water and air quality, and other factors

affecting the environment. If the Secretary of Transportation finds

that a project will have a significant adverse effect, the Secretary

may approve the application for the project only if, after a complete

review that is a matter of public record, the Secretary makes a

written finding that no feasible and prudent alternative to the project

exists and that all reasonable steps have been taken to minimize

the adverse effect.

(b) PUBLIC HEARING REQUIREMENT.—The Secretary of

Transportation may approve an application only if the sponsor of

the project certifies to the Secretary that an opportunity for a public

hearing has been provided to consider the economic, social, and

environmental effects of the project and its consistency with the

goals of any planning carried out by the community. When a

hearing is held under this paragraph, the sponsor shall submit a

copy of the transcript of the hearing to the Secretary.

(c) COMPLIANCE WITH AIR AND WATER QUALITY STANDARDS.—(1)

The Secretary of Transportation may approve an application only if

the chief executive officer of the State in which the project is

located certifies in writing to the Secretary that there is reasonable

assurance that the project will be located, designed, constructed,

and operated to comply with applicable air and water quality

standards. If the Administrator has not prescribed those standards,

certification shall be obtained from the Administrator. Notice of

certification or refusal to certify shall be provided not later than 60

days after the Secretary receives the application.

(2) The Secretary of Transportation shall condition the

approval of an application on compliance with applicable air and

water quality standards during construction and operation.

(d) Compliance With Laws and Regulations.—The Secretary of

Transportation may require a certification from a sponsor that the

sponsor will comply with all applicable laws and regulations. The

Secretary may rescind at any time acceptance of a certification

from a sponsor under this subsection. This subsection does not

affect any responsibility of the Secretary under another law,

including—

(1) section 303 of this title;

(2) title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d

et seq.);

(3) title VIII of the Act of April 11, 1968 (42 U.S.C. 3601 et
260

seq.);

(4) the National Environmental Policy Act of 1969 (42

U.S.C. 4321 et seq.); and

(5) the Uniform Relocation Assistance and Real Property

Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.).

§ 70305. Authorization of appropriations

Not more than $10,000,000 may be appropriated to the

Secretary of Transportation to make grants under this chapter. Amounts appropriated under this section remain available until

expended.
261

TAX PROVISIONS RELATING TO AIR TRANSPORTATION

INTERNAL REVENUE CODE OF 1986

* * * * * * *

Subtitle D—Miscellaneous Excise Taxes

* * * * * * *

CHAPTER 31—RETAIL EXCISE TAXES

* * * * * * *

Subchapter B—Special Fuels

* * * * * * *

SEC. 4041. IMPOSITION OF TAX.

(a) * * *

* * * * * * * (c) CERTAIN LIQUIDS USED AS A FUEL IN AVIATION.—

(1) IN GENERAL.—There is hereby imposed a tax upon any

liquid for use as a fuel other than aviation gasoline—

(A) sold by any person to an owner, lessee, or other operator of

an aircraft for use in such aircraft, or

(B) used by any person in an aircraft unless there was a taxable

sale of such fuel under subparagraph (A).

(2) EXEMPTION FOR PREVIOUSLY TAXED FUEL.—No tax shall be

imposed by this subsection on the sale or use of any liquid for use

as a fuel other than aviation gasoline if tax was imposed on such

liquid under section 4081 and the tax thereon was not credited or

refunded.

(3) RATE OF TAX.—The rate of tax imposed by this subsection

shall be 21.8 cents per gallon (4.3 cents per gallon with respect to

any sale or use for commercial aviation).

(d) ADDITIONAL TAXES TO FUND LEAKING UNDERGROUND STORAGE

TANK TRUST FUND.—

(1) TAX ON SALES AND USES SUBJECT TO TAX UNDER

SUBSECTION (A).—In addition to the taxes imposed by subsection

(a), there is hereby imposed a tax of 0.1 cent a gallon on the sale or

use of any liquid (other than liquefied petroleum gas and other than

liquefied natural gas) if tax is imposed by subsection (a)(1) or (2) on

such sale or use.

(2) LIQUIDS USED IN AVIATION.—In addition to the taxes

imposed by subsection (c), there is hereby imposed a tax of 0.1

cent a gallon on any liquid (other than gasoline (as defined in

section 4083)— (A) sold by any person to an owner, lessee, or other
262

operator of an aircraft for use as a fuel in such aircraft, or

(B) used by any person as a fuel in an aircraft unless

there was a taxable sale of such liquid under

subparagraph (A).

No tax shall be imposed by this paragraph on the sale or use of any

liquid if there was a taxable sale of such liquid under section 4081.

(3) TERMINATION.—The taxes imposed by this subsection shall

not apply during any period during which the Leaking Underground

Storage Tank Trust Fund financing rate under section 4081 does

not apply.

(5) NONAPPLICATION OF EXEMPTIONS OTHER THAN FOR

EXPORTS.—For purposes of this section, the tax imposed under this

subsection shall be determined without regard to subsections

(f), (g) (other than with respect to any sale for export under

paragraph (3) thereof), (h), and (l).

(f) EXEMPTION FOR FARM USE.—

(1) EXEMPTION.—Under regulations prescribed by the Secretary,

no tax shall be imposed under this section on any liquid sold for use

or used on a farm for farming purposes.

(2) USE ON A FARM FOR FARMING PURPOSES.—For purposes of

paragraph (1) of this subsection, use on a farm for farming purposes

shall be determined in accordance with paragraphs

(1), (2), and (3) of section 6420(c).

(g) OTHER EXEMPTIONS.—Under regulations prescribed by the

Secretary, no tax shall be imposed under this section—

(1) on any liquid sold for use or used as supplies for vessels or

aircraft (within the meaning of section 4221(d)(3));

(2) with respect to the sale of any liquid for the exclusive use of

any State, any political subdivision of a State, or the District of

Columbia, or with respect to the use by any of the foregoing of any

liquid as a fuel;

(3) upon the sale of any liquid for export, or for shipment to a

possession of the United States, and in due course so exported or

shipped; and

(4) with respect to the sale of any liquid to a nonprofit

educational organization for its exclusive use, or with respect to the

use by a nonprofit educational organization of any liquid as a fuel.

For purposes of paragraph (4), the term ‘‘nonprofit educational

organization’’ means an educational organization described in section

170(b)(1)(A)(ii) which is exempt from income tax under section

501(a). The term also includes a school operated as an activity of an

organization described in section 501(c)(3) which is exempt from

income tax under section 501(a), if such school normally maintains a

regular faculty and curriculum and normally has a regularly enrolled

body of pupils or students in attendance at the place where its

educational activities are regularly carried on.

(h) EXEMPTION FOR USE BY CERTAIN AIRCRAFT MUSEUMS.—

(1) EXEMPTION.—Under regulations prescribed by the Secretary,

no tax shall be imposed under this section on any liquid sold for use

or used by an aircraft museum in an aircraft or vehicle owned by

such museum and used exclusively for purposes set forth in

paragraph (2)(C).

(2) DEFINITION OF AIRCRAFT MUSEUM.—For purposes of this

subsection, the term ‘‘aircraft museum’’ means an

organization—

(A) described in section 501(c)(3) which is exempt from

income tax under section 501(a),

(B) operated as a museum under charter by a State or the

District of Columbia, and

(C) operated exclusively for the procurement, care, and

exhibition of aircraft of the type used for combat or transport in

World War II.

(j) SALES BY UNITED STATES, ETC..—The taxes imposed by this

section shall apply with respect to liquids sold at retail by the United

States, or by any agency or instrumentality of the United States, unless

sales by such agency or instrumentality are by statute specifically

exempted from such taxes.

(l) EXEMPTION FOR CERTAIN USES.—No tax shall be imposed under

this section on any liquid sold for use in, or used in, a helicopter or a

fixed-wing aircraft for purposes of providing transportation with respect

to which the requirements of subsection (f) or (g) of section 4261 are

met.

(m) CERTAIN ALCOHOL FUELS.—

(1) IN GENERAL.—In the case of the sale or use of any partially

exempt methanol or ethanol fuel the rate of the tax imposed by

subsection (a)(2) shall be—

(A) after September 30, 1997, and before October 1,

2011—

(i) in the case of fuel none of the alcohol in which

consists of ethanol, 9.15 cents per gallon, and

(ii) in any other case, 11.3 cents per gallon, and

(B) after September 30, 2011—

(i) in the case of fuel none of the alcohol in which

consists of ethanol, 2.15 cents per gallon, and

(ii) in any other case, 4.3 cents per gallon.

(2) PARTIALLY EXEMPT METHANOL OR ETHANOL FUEL.—The term

‘‘partially exempt methanol or ethanol fuel’’ means any liquid at

least 85 percent of which consists of methanol, ethanol, or other

alcohol produced from natural gas.

* * * * * * *
263

CHAPTER 32—MANUFACTURERS EXCISE TAXES

* * * * * * *

Subchapter A—Automotive and Related Items

* * * * * * *

PART III—PETROLEUM PRODUCTS

* * * * * * *

Subpart A—Gasoline

* * * * * * *

SEC. 4081. IMPOSITION OF TAX

(a) TAX IMPOSED.—

(1) TAX ON REMOVAL, ENTRY, OR SALE.—

(A) IN GENERAL.—There is hereby imposed a tax at the

rate specified in paragraph (2) on—

(i) the removal of a taxable fuel from any refinery,

(ii) the removal of a taxable fuel from any terminal,

(iii) the entry into the United States of any taxable fuel

for consumption, use, or warehousing, and

(iv) the sale of a taxable fuel to any person who is not

registered under section 4101 unless there was a prior

taxable removal or entry of such fuel under clause (i), (ii),

or (iii).

(B) EXEMPTION FOR BULK TRANSFERS TO REGISTERED

TERMINALS OR REFINERIES.—

(i) IN GENERAL.—The tax imposed by this paragraph shall not apply to any removal or entry of a taxable

fuel transferred in bulk by pipeline or vessel to a terminal

or refinery if the person removing or entering the taxable

fuel, the operator of such pipeline or vessel

(except as provided in clause (ii)), and the operator of

such terminal or refinery are registered under section

4101.

(ii) NONAPPLICATION OF REGISTRATION TO VESSEL

OPERATORS ENTERING BY DEEP-DRAFT VESSEL.—For

purposes of clause (i), a vessel operator is not required to

be registered with respect to the entry of a taxable fuel

transferred in bulk by a vessel described in section

4042(c)(1).

(B) EXEMPTION FOR BULK TRANSFERS TO REGISTERED

TERMINALS OR REFINERIES.—The tax imposed by this paragraph shall not apply to any removal or entry of a taxable fuel

transferred in bulk by pipeline or vessel to a terminal or refinery

if the person removing or entering the taxable fuel, the operator

of such pipeline or vessel, and the operator of such terminal or

refinery are registered under section 4101.

(2) RATES OF TAX.—

(A) IN GENERAL.—The rate of the tax imposed by this

section is—

(i) in the case of gasoline other than aviation gasoline, 18.3 cents per gallon, and

(ii) in the case of aviation gasoline, 19.3 cents per

gallon,

(iii) in the case of diesel fuel or kerosene, 24.3

cents per gallon.

(B) LEAKING UNDERGROUND STORAGE TANK TRUST

FUND TAX.—The rates of tax specified in subparagraph (A) shall

each be increased by 0.1 cent per gallon. The increase in tax

under this subparagraph shall in this title be referred to as the

Leaking Underground Storage Tank Trust Fund financing rate.

(C) TAXES IMPOSED ON FUEL USED IN AVIATION.—In the

case of kerosene which is removed from any refinery or

terminal directly into the fuel tank of an aircraft for use in

aviation, the rate of tax under subparagraph (A)(iii) shall

be—

(i) in the case of use for commercial aviation by a

person registered for such use under section 4101, 4.3

cents per gallon, and

(ii) in the case of use for aviation not described in

clause (i), 21.8 cents per gallon.

(D) DIESEL-WATER FUEL EMULSION.—In the case of dieselwater fuel emulsion at least 14 percent of which is water

and with respect to which the emulsion additive is registered by

a United States manufacturer with the Environmental

Protection Agency pursuant to section 211 of the Clean Air

Act (as in effect on March 31, 2003), subparagraph (A)(iii)

shall be applied by substituting ‘‘19.7 cents’’ for ‘‘24.3

cents’’. The preceding sentence shall not apply to the removal,

sale, or use of diesel-water fuel emulsion unless the person so

removing, selling, or using such fuel is registered under section

4101.

(3) CERTAIN REFUELER TRUCKS, TANKERS, AND TANK WAGONS TREATED AS TERMINAL.—

(A) IN GENERAL.—For purposes of paragraph (2)(C), a

refueler truck, tanker, or tank wagon shall be treated as part of

a terminal if—

(i) such terminal is located within an airport,

(ii) any kerosene which is loaded in such truck, tanker,

or wagon at such terminal is for delivery only into aircraft

at the airport in which such terminal is located,

(iii) such truck, tanker, or wagon meets the

requirements of subparagraph (B) with respect to such

terminal, and

(iv) except in the case of exigent circumstances

identified by the Secretary in regulations, no vehicle
264

registered for highway use is loaded with kerosene at such

terminal.

(B) REQUIREMENTS.—A refueler truck, tanker, or tank

wagon meets the requirements of this subparagraph with

respect to a terminal if such truck, tanker, or wagon—

(i) has storage tanks, hose, and coupling equipment designed and used for the purposes of fueling

aircraft,

(ii) is not registered for highway use, and

(iii) is operated by—

(I) the terminal operator of such terminal, or

(II) a person that makes a daily accounting to

such terminal operator of each delivery of fuel

from such truck, tanker, or wagon.

(C) REPORTING.—The Secretary shall require under

section 4101(d) reporting by such terminal operator of—

(i) any information obtained under subparagraph

(B)(iii)(II), and

(ii) any similar information maintained by such

terminal operator with respect to deliveries of fuel

made by trucks, tankers, or wagons operated by such

terminal operator.

(D) APPLICABLE RATE.—For purposes of paragraph

(2)(C), in the case of any kerosene treated as removed from a

terminal by reason of this paragraph—

(i) the rate of tax specified in paragraph (2)(C)(i) in the

case of use described in such paragraph shall apply if

such terminal is located within a secured area of an

airport, and

(ii) the rate of tax specified in paragraph (2)(C)(ii)

shall apply in all other cases.

(4) LIABILITY FOR TAX ON KEROSENE USED IN COMMERCIAL

AVIATION.—For purposes of paragraph (2)(C)(i), the person who

uses the fuel for commercial aviation shall pay the tax imposed

under such paragraph. For purposes of the preceding sentence,

fuel shall be treated as used when such fuel is removed into the

fuel tank.

(b) TREATMENT OF REMOVAL OR SUBSEQUENT SALE BY

BLENDER.—

(1) IN GENERAL.—There is hereby imposed a tax at the

rate determined under subsection (a) on taxable fuel removed or

sold by the blender thereof.

(2) CREDIT FOR TAX PREVIOUSLY PAID.—If—

(A) tax is imposed on the removal or sale of a taxable fuel

by reason of paragraph (1), and

(B) the blender establishes the amount of the tax paid with

respect to such fuel by reason of subsection (a),the amount of

the tax so paid shall be allowed as a credit against the

tax imposed by reason of paragraph (1).

(c) LATER SEPARATION OF FUEL FROM DIESEL-WATER FUEL

EMULSION.—If any person separates the taxable fuel from a dieselwater fuel emulsion on which tax was imposed under subsection (a) at a

rate determined under subsection (a)(2)(D) (or with respect to which a

credit or payment was allowed or made by reason of section 6427),

such person shall be treated as the refiner of such taxable fuel. The

amount of tax imposed on any removal of such fuel by such person shall

be reduced by the amount of tax imposed (and not credited or refunded)

on any prior removal or entry of such fuel.

(d) TERMINATION.—

(1) IN GENERAL.—The rates of tax specified in clauses (i) and

(iii) of subsection (a)(2)(A) shall be 4.3 cents per gallon after

September 30, 2011.

(2) AVIATION FUELS.—The rates of tax specified in subsection (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 cents per

gallon—

(A) after December 31, 1996, and before the date

which is 7 days after the date of the enactment of the Airport

and Airway Trust Fund Tax Reinstatement Act of 1997,

and

(B) after September 30, 2007.

(3) LEAKING UNDERGROUND STORAGE TANK TRUST FUND FINANCING RATE.—The Leaking Underground Storage Tank

Trust Fund financing rate under subsection (a)(2) shall apply after

September 30, 1997, and before October 1, 2011.

(e) REFUNDS IN CERTAIN CASES.—Under regulations prescribed by

the Secretary, if any person who paid the tax imposed by this section

with respect to any taxable fuel establishes to the satisfaction of the

Secretary that a prior tax was paid (and not credited or refunded) with

respect to such taxable fuel, then an amount equal to the tax paid

by such person shall be allowed as a refund

(without interest) to such person in the same manner as if it were an

overpayment of tax imposed by this section.

* * * * * * *

CHAPTER 33—FACILITIES AND SERVICES

* * * * * * *

Subchapter C—Transportation by Air

* * * * * * *

PART I—PERSONS

* * * * * * *

SEC. 4261. IMPOSITION OF TAX.

(a) IN GENERAL.—There is hereby imposed on the amount paid for
265

taxable transportation of any person a tax equal to 7.5 percent of the

amount so paid.

(b) DOMESTIC SEGMENTS OF TAXABLE TRANSPORTATION.—

(1) IN GENERAL.—There is hereby imposed on the amount paid

for each domestic segment of taxable transportation by air a tax in

the amount determined in accordance with the following table for

the period in which the segment begins:

In the case of segments

beginning: The tax is:

After September 30, 1997, and before October 1, 1998 ................. $1.00

After September 30, 1998, and before October 1, 1999 ................. $2.00

After September 30, 1999, and before January 1, 2000 ................ $2.25

During 2000 ................................................................................... $2.50

During 2001 ................................................................................... $2.75

During 2002 or thereafter ................................................................ $3.00

(2) DOMESTIC SEGMENT.—For purposes of this section, the term

‘‘domestic segment’’ means any segment consisting of 1 takeoff

and 1 landing and which is taxable transportation described in

section 4262(a)(1).

(3) CHANGES IN SEGMENTS BY REASON OF REROUTING.—If—

(A) transportation is purchased between 2 locations on

specified flights, and

(B) there is a change in the route taken between such

2 locations which changes the number of domestic segments, but there is no change in the amount charged for such

transportation, the tax imposed by paragraph (1) shall be

determined without regard to such change in route.

(c) USE OF INTERNATIONAL TRAVEL FACILITIES.—

(1) IN GENERAL.—There is hereby imposed a tax of $12.00 on

any amount paid (whether within or without the United States) for

any transportation of any person by air, if such transportation

begins or ends in the United States.

(2) EXCEPTION FOR TRANSPORTATION ENTIRELY TAXABLE

UNDER SUBSECTION (A).—This subsection shall not apply to any

transportation all of which is taxable under subsection (a)

(determined without regard to sections 4281 and 4282).

(3) SPECIAL RULE FOR ALASKA AND HAWAII.—In any case in

which the tax imposed by paragraph (1) applies to a domestic

segment beginning or ending in Alaska or Hawaii, such tax shall

apply only to departures and shall be at the rate of $6.

(d) BY WHOM PAID.—Except as provided in section 4263(a), the

taxes imposed by this section shall be paid by the person making the

payment subject to the tax.

(e) SPECIAL RULES.—

(1) SEGMENTS TO AND FROM RURAL AIRPORTS.—

(A) EXCEPTION FROM SEGMENT TAX.—The tax imposed by

subsection (b)(1) shall not apply to any domestic segment

beginning or ending at an airport which is a rural airport for the

calendar year in which such segment begins or ends (as the

case may be).

(B) RURAL AIRPORT.—For purposes of this paragraph, the

term ‘‘rural airport’’ means, with respect to any calendar year,

any airport if—

(i) there were fewer than 100,000 commercial passengers departing by air (in the case of any airport described in clause (ii)(III), on flight segments of at least

100 miles) during the second preceding calendar year

from such airport, and

(ii) such airport—

(I) is not located within 75 miles of another airport

which is not described in clause (i),

(II) is receiving essential air service subsidies as

of the date of the enactment of this paragraph, or

(III) is not connected by paved roads to another

airport.

(C) NO PHASEIN OF REDUCED TICKET TAX.—In the case of

transportation beginning before October 1, 1999—

(i) IN GENERAL.—Paragraph (5) shall not apply to any

domestic segment beginning or ending at an airport which

is a rural airport for the calendar year in which such

segment begins or ends (as the case may be).

(ii) TRANSPORTATION INVOLVING MULTIPLE SEGMENTS.—In the case of transportation involving more than

1 domestic segment at least 1 of which does not begin or

end at a rural airport, the 7.5 percent rate applicable by

reason of clause (i) shall be applied by taking into account

only an amount which bears the same ratio to the amount

paid for such transportation as the number of specified

miles in domestic segments which begin or end at a rural

airport bears to the total number of specified miles in such

transportation.

(2) AMOUNTS PAID OUTSIDE THE UNITED STATES.—In the

case of amounts paid outside the United States for taxable

transportation, the taxes imposed by subsections (a) and (b) shall

apply only if such transportation begins and ends in the United

States.

(3) AMOUNTS PAID FOR RIGHT TO AWARD FREE OR REDUCED

RATE AIR TRANSPORTATION.—

(A) IN GENERAL.—Any amount paid (and the value of any

other benefit provided) to an air carrier (or any related person)

for the right to provide mileage awards for (or other

reductions in the cost of) any transportation of persons by air

shall be treated for purposes of subsection (a) as an amount

paid for taxable transportation, and such amount shall be

taxable under subsection (a) without regard to any other

provision of this subchapter.

(B) CONTROLLED GROUP.—For purposes of subparagraph (A), a corporation and all wholly owned subsidiaries of

such corporation shall be treated as 1 corporation.

(C) REGULATIONS.—The Secretary shall prescribe rules
266

which reallocate items of income, deduction, credit, exclusion,

or other allowance to the extent necessary to prevent the

avoidance of tax imposed by reason of this paragraph. The

Secretary may prescribe rules which exclude from the tax

imposed by subsection (a) amounts attributable to mileage

awards which are used other than for transportation of persons

by air.

(4) INFLATION ADJUSTMENT OF DOLLAR RATES OF TAX.—

(A) IN GENERAL.—In the case of taxable events in a

calendar year after the last nonindexed year, the $3.00

amount contained in subsection (b) and each dollar

amount contained in subsection (c) shall be increased by an

amount equal to—

(i) such dollar amount, multiplied by

(ii) the cost-of-living adjustment determined under

section 1(f)(3) for such calendar year by substituting the

year before the last nonindexed year for ‘‘calendar year

1992’’ in subparagraph (B) thereof.

If any increase determined under the preceding sentence is not a

multiple of 10 cents, such increase shall be rounded to the nearest

multiple of 10 cents.

(B) LAST NONINDEXED YEAR.—For purposes of subparagraph (A), the last nonindexed year is—

(i) 2002 in the case of the $3.00 amount contained in

subsection (b), and

(ii) 1998 in the case of the dollar amounts contained in

subsection (c).

(C) TAXABLE EVENT.—For purposes of subparagraph

(A), in the case of the tax imposed by subsection (b), the

beginning of the domestic segment shall be treated as the

taxable event.

(D) SPECIAL RULE FOR AMOUNTS PAID FOR DOMESTIC

SEGMENTS BEGINNING AFTER 2002.—If an amount is paid

during a calendar year for a domestic segment beginning in a

later calendar year, then the rate of tax under subsection (b) on

such amount shall be the rate in effect for the calendar year in

which such amount is paid.

(5) RATES OF TICKET TAX FOR TRANSPORTATION BEGINNING

BEFORE OCTOBER 1, 1999.—Subsection (a) shall be applied by

substituting for ‘‘7.5 percent’’—

(A) ‘‘9 percent’’ in the case of transportation beginning

after September 30, 1997, and before October 1, 1998, and

(B) ‘‘8 percent’’ in the case of transportation beginning

after September 30, 1998, and before October 1, 1999.

(f) EXEMPTION FOR CERTAIN USES.—No tax shall be imposed

under subsection (a) or (b) on air transportation—

(1) by helicopter for the purpose of transporting individuals,

equipment, or supplies in the exploration for, or the

development or removal of, hard minerals, oil, or gas, or

(2) by helicopter or by fixed-wing aircraft for the purpose of the

planting, cultivation, cutting, or transportation of, or caring for,

trees (including logging operations),

but only if the helicopter or fixed-wing aircraft does not take off from, or

land at, a facility eligible for assistance under the Airport and Airway

Development Act of 1970, or otherwise use services provided

pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of

title 49, United States Code, during such use. In the case of helicopter

transportation described in paragraph (1), this subsection shall be

applied by treating each flight segment as a distinct flight.

(g) EXEMPTION FOR AIR AMBULANCES PROVIDING CERTAIN

EMERGENCY MEDICAL TRANSPORTATION.—No tax shall be imposed under

this section or section 4271 on any air transportation for the purpose of

providing emergency medical services—

(1) by helicopter, or

(2) by a fixed-wing aircraft equipped for and exclusively

dedicated on that flight to acute care emergency medical services.

(h) EXEMPTION FOR SKYDIVING USES.—No tax shall be imposed by

this section or section 4271 on any air transportation exclusively for the

purpose of skydiving.

(i) EXEMPTION FOR SEAPLANES.—No tax shall be imposed by this

section or section 4271 on any air transportation by a seaplane with

respect to any segment consisting of a takeoff from, and a landing on,

water, but only if the places at which such takeoff and landing occur

have not received and are not receiving financial assistance from

the Airport and Airways Trust Fund.

(j) APPLICATION OF TAXES.—

(1) IN GENERAL.—The taxes imposed by this section shall apply

to—

(A) transportation beginning during the period—

(i) beginning on the 7th day after the date of the

enactment of the Airport and Airway Trust Fund Tax

Reinstatement Act of 1997, and

(ii) ending on September 30, 2007, and

(B) amounts paid during such period for transportation beginning after such period.

(2) REFUNDS.—If, as of the date any transportation begins, the

taxes imposed by this section would not have applied to such

transportation if paid for on such date, any tax paid under

paragraph (1)(B) with respect to such transportation shall be

treated as an overpayment.

SEC. 4262. DEFINITION OF TAXABLE TRANSPORTATION.

(a) TAXABLE TRANSPORTATION; IN GENERAL.—For purposes of this

part, except as provided in subsection (b), the term ‘‘taxable

transportation’’ means—

(1) transportation by air which begins in the United States or in

the 225-mile zone and ends in the United States or in the 225-mile

zone; and

(2) in the case of transportation by air other than trans- portation described in paragraph (1), that portion of such
267

transportation which is directly or indirectly from one port or station

in the United States to another port or station in the United States,

but only if such portion is not a part of uninterrupted international air

transportation (within the meaning of subsection (c)(3)).

(b) EXCLUSION OF CERTAIN TRAVEL.—For purposes of this part, the

term ‘‘taxable transportation’’ does not include that portion of any

transportation by air which meets all 4 of the following

requirements:

(1) such portion is outside the United States;

(2) neither such portion nor any segment thereof is directly or

indirectly—

(A) between (i) a point where the route of the transportation leaves or enters the continental United States, or

(ii) a port or station in the 225-mile zone, and

(B) a port or station in the 225-mile zone;

(3) such portion—

(A) begins at either (i) the point where the route of the

transportation leaves the United States, or

(ii) a port or station in the 225-mile zone, and

(B) ends at either (i) the point where the route of the

transportation enters the United States, or

(ii) a port or station in the 225-mile zone; and

(4) a direct line from the point (or the port or station)

specified in paragraph (3)(A), to the point (or the port or station)

specified in paragraph (3)(B), passes through or over a point which

is not within 225 miles of the United States.

(c) DEFINITIONS.—For purposes of this section—

(1) CONTINENTAL UNITED STATES.—The term ‘‘continental

United States’’ means the District of Columbia and the States other

than Alaska and Hawaii. (2) 225-MILE ZONE.—The term ‘‘225-mile zone’’ means that

portion of Canada and Mexico which is not more than 225

miles from the nearest point in the continental United States. (3) UNINTERRUPTED INTERNATIONAL AIR TRANSPORTATION.— The term ‘‘uninterrupted international air transportation’’ means any

transportation by air which is not transportation described in

subsection (a)(1) and in which— (A) the scheduled interval between (i) the beginning or end

of the portion of such transportation which is directly or

indirectly from one port or station in the United States to

another port or station in the United States and (ii) the end or

beginning of the other portion of such transportation is not

more than 12 hours, and

(B) the scheduled interval between the beginning or end

and the end or beginning of any two segments of the portion of

such transportation referred to in subparagraph

(A)(i) is not more than 12 hours.

For purposes of this paragraph, in the case of personnel of the

United States Army, Air Force, Navy, Marine Corps, and Coast

Guard traveling in uniform at their own expense when on official

leave, furlough, or pass, the scheduled interval described in

subparagraph (A) shall be deemed to be not more than 12 hours if

a ticket for the subsequent portion of such transportation is

purchased within 12 hours after the end of the earlier portion of

such transportation and the purchaser accepts and utilizes the first

accommodations actually available to him for such subsequent

portion.

(d) TRANSPORTATION.—For purposes of this part, the term

‘‘transportation’’ includes layover or waiting time and movement of the

aircraft in deadhead service.

(e) AUTHORITY TO WAIVE 225-MILE ZONE PROVISIONS.—

(1) IN GENERAL.—If the Secretary of the Treasury determines

that Canada or Mexico has entered into a qualified

agreement—

(A) the Secretary shall publish a notice of such determination in the Federal Register, and

(B) effective with respect to transportation beginning after

the date specified in such notice, to the extent provided in the

agreement, the term ‘‘225-mile zone’’ shall not include part or

all of the country with respect to which such determination is

made.

(2) TERMINATION OF WAIVER.—If a determination was made

under paragraph (1) with respect to any country and the Secretary

of the Treasury subsequently determines that the agreement is

no longer in effect or that the agreement is no longer a qualified

agreement—

(A) the Secretary shall publish a notice of such determination in the Federal Register, and

(B) subparagraph (B) of paragraph (1) shall cease to apply

with respect to transportation beginning after the date

specified in such notice.

(3) QUALIFIED AGREEMENT.—For purposes of this subsection, the term ‘‘qualified agreement’’ means an agreement

between the United States and Canada or Mexico (as the case may

be)—

(A) setting forth that portion of such country which is not to

be treated as within the 225-mile zone, and

(B) providing that the tax imposed by such country on

transportation described in subparagraph (A) will be at a level

which the Secretary of the Treasury determines to be

appropriate.

(4) REQUIREMENT THAT AGREEMENT BE SUBMITTED TO CONGRESS.—No notice may be published under paragraph (1)(A)

with respect to any qualified agreement before the date 90

days after the date on which a copy of such agreement was furnished to the Committee on Ways and Means of the House of

Representatives and the Committee on Finance of the Senate.

SEC. 4263. SPECIAL RULES.

(a) PAYMENTS MADE OUTSIDE THE UNITED STATES FOR PREPAID

ORDERS.—If the payment upon which tax is imposed by section
268

4261 is made outside the United States for a prepaid order, exchange

order, or similar order, the person furnishing the initial

transportation pursuant to such order shall collect the amount of the tax.

(b) TAX DEDUCTED UPON REFUNDS.—Every person who refunds

any amount with respect to a ticket or order which was purchased

without payment of the tax imposed by section 4261 shall deduct from

the amount refundable, to the extent available, any tax due under such

section as a result of the use of a portion of the transportation

purchased in connection with such ticket or order, and shall report to the

Secretary the amount of any such tax remaining uncollected.

(c) PAYMENT OF TAX.—Where any tax imposed by section 4261 is

not paid at the time payment for transportation is made, then, under

regulations prescribed by the Secretary, to the extent that such tax is

not collected under any other provision of this subchapter, such tax

shall be paid by the carrier providing the initial segment of such

transportation which begins or ends in the United States.

(d) APPLICATION OF TAX.—The tax imposed by section 4261

shall apply to any amount paid within the United States for transportation of any person by air unless the taxpayer establishes, pursuant to regulations prescribed by the Secretary at the time of payment

for the transportation, that the transportation is not transportation in

respect of which tax is imposed by section 4261.

(e) ROUND TRIPS.—In applying this subchapter to a round trip, such

round trip shall be considered to consist of transportation from the

point of departure to the destination, and of separate transportation

thereafter.

(f) TRANSPORTATION OUTSIDE THE NORTHERN PORTION OF THE

WESTERN HEMISPHERE.—In applying this subchapter to transportation

any part of which is outside the northern portion of the Western

Hemisphere, if the route of such transportation leaves and reenters the

northern portion of the Western Hemisphere, such transportation

shall be considered to consist of transportation to a point outside such

northern portion, and of separate transportation thereafter. For purposes

of this subsection, the term ‘‘northern portion of the Western

Hemisphere’’ means the area lying west of the

30th meridian west of Greenwich, east of the international dateline, and

north of the Equator, but not including any country of South America.

PART II—PROPERTY

Sec. 4271. Imposition of tax.

Sec. 4272. Definition of taxable transportation, etc.

SEC. 4271. IMPOSITION OF TAX.

(a) IN GENERAL.—There is hereby imposed upon the amount paid

within or without the United States for the taxable transportation (as

defined in section 4272) of property a tax equal to 6.25 percent of the

amount so paid for such transportation. The tax imposed by this

subsection shall apply only to amounts paid to a person engaged in

the business of transporting property by air for hire.

(b) BY WHOM PAID.—

(1) IN GENERAL.—Except as provided by paragraph (2), the tax

imposed by subsection (a) shall be paid by the person making the

payment subject to tax.

(2) PAYMENTS MADE OUTSIDE THE UNITED STATES.—If a

payment subject to tax under subsection (a) is made outside the

United States and the person making such payment does not pay

such tax, such tax—

(A) shall be paid by the person to whom the property is

delivered in the United States by the person furnishing the last

segment of the taxable transportation in respect of which such

tax is imposed, and

(B) shall be collected by the person furnishing the last

segment of such taxable transportation.

(c) DETERMINATION OF AMOUNTS PAID IN CERTAIN CASES.—For

purposes of this section, in any case in which a person engaged in the

business of transporting property by air for hire and one or more other

persons not so engaged jointly provide services which include taxable

transportation of property, and the person so engaged receives, for the

furnishing of such taxable transportation, a portion of the receipts from

the joint providing of such services, the amount paid for the taxable

transportation shall be treated as being the sum of (1) the portion of

the receipts so received, and (2) any expenses incurred by any of the

persons not so engaged which are properly attributable to such taxable

transportation and which are taken into account in determining the

portion of the receipts so received.

(d) APPLICATION OF TAX.—

(1) IN GENERAL.—The tax imposed by subsection (a) shall

apply to—

(A) transportation beginning during the period—

(i) beginning on the 7th day after the date of the

enactment of the Airport and Airway Trust Fund Tax

Reinstatement Act of 1997, and

(ii) ending on September 30, 2007, and

(B) amounts paid during such period for transportation beginning after such period.

(2) REFUNDS.—If, as of the date any transportation begins, the

taxes imposed by this section would not have applied to such

transportation if paid for on such date, any tax paid under

paragraph (1)(B) with respect to such transportation shall be

treated as an overpayment.

SEC. 4272. DEFINITION OF TAXABLE TRANSPORTATION, ETC.

(a) IN GENERAL.—For purposes of this part, except as provided in

subsection (b), the term ‘‘taxable transportation’’ means transportation

by air which begins and ends in the United States.

(b) EXCEPTIONS.—For purposes of this part, the term ‘‘taxable

transportation’’ does not include—

(1) that portion of any transportation which meets the

requirements of paragraphs (1), (2), (3), and

(4) of section 4262(b), or
269

(2) under regulations prescribed by the Secretary, transportation of property in the course of exportation (including

shipment to a possession of the United States) by continuous

movement, and in due course so exported.

(c) EXCESS BAGGAGE OF PASSENGERS.—For purposes of this

part, the term ‘‘property’’ does not include excess baggage accompanying a passenger traveling on an aircraft operated on an established line.

(d) TRANSPORTATION.—For purposes of this part, the term

‘‘transportation’’ includes layover or waiting time and movement of the

aircraft in deadhead service.

PART III—SPECIAL PROVISIONS APPLICABLE TO TAXES ON

TRANSPORTATION BY AIR

Sec. 4281. Small aircraft on nonestablished lines.

Sec. 4282. Transportation by air for other members of affiliated group.

SEC. 4281. SMALL AIRCRAFT ON NONESTABLISHED LINES.

The taxes imposed by sections 4261 and 4271 shall not apply to

transportation by an aircraft having a maximum certificated takeoff

weight of 6,000 pounds or less, except when such aircraft is operated

on an established line. For purposes of the preceding sentence, the

term ‘‘maximum certificated takeoff weight’’ means the maximum such

weight contained in the type certificate or airworthiness certificate. For

purposes of this section, an aircraft shall not be considered as operated

on an established line at any time during which such aircraft is being

operated on a flight the sole purpose of which is sightseeing.

SEC. 4282. TRANSPORTATION BY AIR FOR OTHER MEMBERS OF

AFFILIATED GROUP.

(a) GENERAL RULE.—Under regulations prescribed by the Secretary, if—

(1) one member of an affiliated group is the owner or lessee of

an aircraft, and

(2) such aircraft is not available for hire by persons who are not

members of such group, no tax shall be imposed under section

4261 or 4271 upon any payment received by one member of the

affiliated group from another member of such group for services

furnished to such other member in connection with the use of such

aircraft.

(b) AVAILABILITY FOR HIRE.—For purposes of subsection (a), the

determination of whether an aircraft is available for hire by persons who

are not members of an affiliated group shall be made on a flight-by-flight

basis.

(c) AFFILIATED GROUP.—For purposes of subsection (a), the

term ‘‘affiliated group’’ has the meaning assigned to such term by

section 1504(a), except that all corporations shall be treated as

includible corporations (without any exclusion under section

1504(b)).

Subchapter E—Special Provisions Applicable to

Services and Facilities Taxes

Sec. 4291. Cases where persons receiving payment must collect tax.

Sec. 4293. Exemption for United States and possessions.

SEC. 4291. CASES WHERE PERSONS RECEIVING PAYMENT MUST COLLECT TAX.

Except as otherwise provided in section 4263(a), every person

receiving any payment for facilities or services on which a tax is

imposed upon the payor thereof under this chapter shall collect the

amount of the tax from the person making such payment.

SEC. 4293. EXEMPTION FOR UNITED STATES AND POSSESSIONS.

The Secretary of the Treasury may authorize exemption from the

taxes imposed by subchapter A of chapter 31, section 4041, section

4051, chapter 32 (other than the taxes imposed by sections

4064 and 4121) and subchapter B of chapter 33, as to any particular

article, or service or class of articles or services, to be purchased for the

exclusive use of the United States, if he determines that the imposition

of such taxes with respect to such articles or services, or class of

articles or services will cause substantial burden or expense which can

be avoided by granting tax exemption and that full benefit of such

exemption, if granted, will accrue to the United States.

* * * * * * *

Subtitle E—Alcohol, Tobacco, and Certain

Other Excise Taxes

* * * * * * *

CHAPTER 75—CRIMES, OTHER OFFENSES,

AND FORFEITURES

* * * * * * *

Subchapter B—Other Offenses

* * * * * * *

SEC. 7275. PENALTY FOR OFFENSES RELATING TO CERTAIN AIRLINE TICKETS

AND ADVERTISING.

(a) TICKETS.—In the case of transportation by air all of which is

taxable transportation (as defined in section 4262), the ticket for such

transportation shall show the total of—

(1) the amount paid for such transportation, and

(2) the taxes imposed by subsections (a) and (b) of section

4261.

(b) ADVERTISING.—In the case of transportation by air all of which

is taxable transportation (as defined in section 4262) or would be
270

taxable transportation if section 4262 did not include subsection (b)

thereof, any advertising made by or on behalf of any person furnishing

such transportation (or offering to arrange such transportation) which

states the cost of such transportation shall—

(1) state such cost as the total of (A) the amount to be paid for

such transportation, and (B) the taxes imposed by sections

4261(a), (b), and (c), and

(2) if any such advertising states separately the amount to be

paid for such transportation or the amount of such taxes, shall

state such total at least as prominently as the more

prominently stated of the amount to be paid for such transportation or the amount of such taxes and shall describe such

taxes substantially as: ‘‘user taxes to pay for airport construction

and airway safety and operations.’’

(c) PENALTY.—Any person who violates any provision of subsection (a) or (b) is, for each violation, guilty of a misdemeanor, and

upon conviction thereof shall be fined not more than $100.

* * * * * * *
271

AIRPORT AND AIRWAY TRUST FUND

HIGHWAY TRUST FUND

INTERNAL REVENUE CODE OF 1986

Subtitle I—Trust Fund Code

SEC. 9500. SHORT TITLE.

This subtitle may be cited as the Trust Fund Code of 1981.

CHAPTER 98—TRUST FUND CODE

Subchapter A. Establishment of Trust Funds. Subchapter B. General provisions.

Subchapter A—Establishment of Trust Funds

Sec. 9501. Black Lung Disability Trust Fund.

Sec. 9502. Airport and Airway Trust Fund. Sec. 9503. Highway Trust Fund.

* * * * * * *

SEC. 9502. AIRPORT AND AIRWAY TRUST FUND.

(a) CREATION OF TRUST FUND.—There is established in the

Treasury of the United States a trust fund to be known as the ‘‘Airport

and Airway Trust Fund’’, consisting of such amounts as may be

appropriated, credited, or paid into the Airport and Airway Trust

Fund as provided in this section, section 9503(c)(7), or section

9602(b).

(b) TRANSFERS TO AIRPORT AND AIRWAY TRUST FUND.—There are

hereby appropriated to the Airport and Airway Trust Fund

amounts equivalent to—

(1) the taxes received in the Treasury under—

(A) section 4041(c) (relating to aviation fuels),

(B) sections 4261 and 4271 (relating to transportation by

air), and

(C) section 4081 with respect to aviation gasoline and

kerosene to the extent attributable to the rate specified in

section 4081(a)(2)(C), and

(2) the amounts determined by the Secretary of the Treasury

to be equivalent to the amounts of civil penalties collected under

section 47107(n) of title 49, United States Code.

There shall not be taken into account under paragraph (1) so much of

the taxes imposed by section 4081 as are determined at the rate

specified in section 4081(a)(2)(B).

(c) APPROPRIATION OF ADDITIONAL SUMS.—There are hereby

authorized to be appropriated to the Airport and Airway Trust

Fund such additional sums as may be required to make the

expenditures referred to in subsection (d) of this section.

(d) EXPENDITURES FROM AIRPORT AND AIRWAY TRUST FUND.—

(1) AIRPORT AND AIRWAY PROGRAM.—Amounts in the Airport
272

and Airway Trust Fund shall be available, as provided by

appropriation Acts, for making expenditures before October 1,

2007, to meet those obligations of the United States—

(A) incurred under title I of the Airport and Airway

Development Act of 1970 or of the Airport and Airway

Development Act Amendments of 1976 or of the Aviation

Safety and Noise Abatement Act of 1979 or under the Fiscal

Year 1981 Airport Development Authorization Act or the

provisions of the Airport and Airway Improvement Act of

1982 or the Airport and Airway Safety and Capacity

Expansion Act of 1987 or the Federal Aviation Administration

Research, Engineering, and Development Authorization Act

of 1990 or the Aviation Safety and Capacity Expansion

Act of 1990 or the Airport and Airway Safety, Capacity, Noise

Improvement, and Intermodal Transportation Act of 1992 or

the Airport Improvement Program Temporary Extension Act

of 1994 or the Federal Aviation Administration Authorization

Act of 1994 or the Federal Aviation Reauthorization Act of

1996 or the provisions of the Omnibus Consolidated and

Emergency Supplemental Appropriations Act, 1999 providing

for payments from the Airport and Airway Trust Fund or

the Interim Federal Aviation Administration Authorization Act

or section 6002 of the 1999 Emergency Supplemental

Appropriations Act, Public Law 106-59, or the Wendell H.

Ford Aviation Investment and Reform Act for the 21st

Century or the Aviation and Transportation Security Act or

the Vision 100—Century of Aviation Reauthorization Act;

(B) heretofore or hereafter incurred under part A of

subtitle VII of title 49, United States Code, which are

attributable to planning, research and development, construction, or operation and maintenance of—

(i) air traffic control,

(ii) air navigation,

(iii) communications, or

(iv) supporting services, for the airway system; or

(C) for those portions of the administrative expenses of

the Department of Transportation which are attributable to

activities described in subparagraph (A) or (B).

Any reference in subparagraph (A) to an Act shall be treated as a

reference to such Act and the Corresponding provisions (if any) of

title 49, United States Code, as such Act and Provisions were in

effect on the date of the enactment of the last Act referred to in

subparagraph (A).

(2) TRANSFERS FROM AIRPORT AND AIRWAY TRUST FUND ON

ACCOUNT OF CERTAIN REFUNDS.—The Secretary of the Treasury

shall pay from time to time from the Airport and Airway Trust Fund

into the general fund of the Treasury amounts equivalent to the

amounts paid after August 31, 1982, in respect of fuel used in

aircraft, under section 6420 (relating to amounts paid in respect

of gasoline used on farms), 6421 (relating to amounts paid

in respect of gasoline used for certain non-highway

purposes), or 6427 (relating to fuels not used for taxable

purposes) (other than subsection (l)(4) and (l)(5) thereof).

(3) TRANSFERS FROM THE AIRPORT AND AIRWAY TRUST FUND

ON ACCOUNT OF CERTAIN SECTION 34 CREDITS.—The Secretary of

the Treasury shall pay from time to time from the Airport and

Airway Trust Fund into the general fund of the Treasury amounts

equivalent to the credits allowed under section 34

(other than payments made by reason of paragraph (4) or (5)

of section 6427(l)) with respect to fuel used after August 31,

1982. Such amounts shall be transferred on the basis of estimates by the Secretary of the Treasury, and proper adjustments shall be made in amounts subsequently transferred to the

extent prior estimates were in excess of or less than the credits

allowed.

(4) TRANSFERS FOR REFUNDS AND CREDITS NOT TO EXCEED

TRUST FUND REVENUES ATTRIBUTABLE TO FUEL USED.—The

amounts payable from the Airport and Airway Trust Fund

under paragraph (2) or (3) shall not exceed the amounts required

to be appropriated to such Trust Fund with respect to fuel so

used.

(5) TRANSFERS FROM AIRPORT AND AIRWAY TRUST FUND ON

ACCOUNT OF REFUNDS OF TAXES ON TRANSPOTATION BY AIR.— The

Secretary of the Treasury shall pay from time to time from the

Airport and Airway Trust Fund into the general fund of the

Treasury amounts equivalent to the amounts paid after

December 31, 1995, under section 6402 (relating to authority to

make credits or refunds) or section 6415 (relating to credits or

refunds to persons who collected certain taxes) in respect of taxes

under sections 4261 and 4271.

(6) TRANSFERS FROM THE AIRPORT AND AIRWAY TRUST FUND

ON ACCOUNT OF CERTAIN AIRPORTS.—The Secretary of the

Treasury may transfer from the Airport and Airway Trust

Fund to the Secretary of Transportation or the Administrator of the

Federal Aviation Administration an amount to make a payment to

an airport affected by a diversion that is the subject of an

administrative action under paragraph (3) or a civil action under

paragraph (4) of section 47107(n) of title 49, United States

Code.

(e) CERTAIN TAXES ON ALCOHOL MIXTURES TO REMAIN IN GENERAL FUND.—For purposes of this section, the amounts which

would (but for this subsection) be required to be appropriated

under subparagraphs (A), (C), and (D) of subsection (b)(1) shall be

reduced by—

(1) 0.6 cent per gallon in the case of taxes imposed on any

mixture at least 10 percent of which is alcohol (as defined in

section 4081(c)(3)) if any portion of such alcohol is ethanol; and

(2) 0.67 cent per gallon in the case of fuel used in producing

a mixture described in paragraph (1).

(f) LIMITATION ON TRANSFERS TO TRUST FUND.—
273

(1) IN GENERAL.—Except as provided in paragraph (2), no

amount may be appropriated or credited to the Airport and

Airway Trust Fund on and after the date of any expenditure from

the Airport and Airway Trust Fund which is not permitted by

this section. The determination of whether an expenditure is

so permitted shall be made without regard to—

(A) any provision of law which is not contained or referenced in this title or in a revenue Act; and

(B) whether such provision of law is a subsequently

enacted provision or directly or indirectly seeks to waive the

application of this subsection.

(2) EXCEPTION FOR PRIOR OBLIGATIONS.—Paragraph (1)

shall not apply to any expenditure to liquidate any contract entered into (or for any amount otherwise obligated) before October

1, 2003, in accordance with the provisions of this section.

SEC. 9503. HIGHWAY TRUST FUND.

(a) CREATION OF TRUST FUND.—There is established in the

Treasury of the United States a trust fund to be known as the

‘‘Highway Trust Fund’’, consisting of such amounts as may be appropriated or credited to the Highway Trust Fund as provided in this

section or section 9602(b).

(b) TRANSFER TO HIGHWAY TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN TAXES AND PENALTIES.—

(1) CERTAIN TAXES.—There are hereby appropriated to the

Highway Trust Fund amounts equivalent to the taxes received in

the Treasury before October 1, 2011, under the following

provisions—

(A) section 4041 (relating to taxes on diesel fuels and

special motor fuels),

(B) section 4051 (relating to retail tax on heavy trucks

and trailers),

(C) section 4071 (relating to tax on tires),

(D) section 4081 (relating to tax on gasoline, diesel

fuel, and kerosene), and

(E) section 4481 (relating to tax on use of certain vehi- cles).

For purposes of this paragraph, taxes received under sections

4041 and 4081 shall be determined without reduction for credits

under section 6426.

(2) LIABILITIES INCURRED BEFORE OCTOBER 1, 2011.—There

are hereby appropriated to the Highway Trust Fund amounts

equivalent to the taxes which are received in the Treasury

after September 30, 2011, and before July 1, 2012, and which are

attributable to liability for tax incurred before October 1,

2011, under the provisions described in paragraph (1).

[(3) Repealed. Pub. L. 109-59, title XI, Sec. 11161(c)(2)(C), Aug. 10, 2005, 119 Stat. 1972]

(4) CERTAIN TAXES NOT TRANSFERRED TO HIGHWAY TRUST

FUND.—For purposes of paragraphs (1) and (2), there shall not be

taken into account the taxes imposed by—

(A) section 4041(d),

(B) section 4081 to the extent attributable to the rate

specified in section 4081(a)(2)(B),

(C) section 4041 or 4081 to the extent attributable to fuel

used in a train, or

(D) in the case of gasoline and special motor fuels used

as described in paragraph (4)(D) or (5)(B) of subsection (c),

section 4041 or 4081 with respect to so much of the rate of

tax as exceeds—

(i) 11.5 cents per gallon with respect to taxes imposed before October 1, 2001,

(ii) 13 cents per gallon with respect to taxes imposed after September 30, 2001, and before October 1,

2003, and

(iii) 13.5 cents per gallon with respect to taxes imposed after September 30, 2003, and before October 1,

2005.

(5) CERTAIN PENALTIES.—There are hereby appropriated to

the Highway Trust Fund amounts equivalent to the penalties paid

under sections 6715, 6715A, 6717, 6718, 6719, 6720A,

6725, 7232, and 7272 (but only with regard to penalties under

such section related to failure to register under section 4101).

(6) LIMITATION ON TRANSFERS TO HIGHWAY TRUST FUND.—

(A) IN GENERAL.—Except as provided in subparagraph

(B), no amount may be appropriated to the Highway Trust

Fund on and after the date of any expenditure from the

Highway Trust Fund which is not permitted by this section.

The determination of whether an expenditure is so permitted

shall be made without regard to—

(i) any provision of law which is not contained or

referenced in this title or in a revenue Act, and

(ii) whether such provision of law is a subsequently enacted provision or directly or indirectly

seeks to waive the application of this paragraph.

(B) EXCEPTION FOR PRIOR OBLIGATIONS.—Subparagraph (A) shall not apply to any expenditure to liquidate any

contract entered into (or for any amount otherwise obligated) before September 30, 2009 (October 1, 2009, in the

case of expenditures for administrative expenses), in

accordance with the provisions of this section.

(c) EXPENDITURES FROM HIGHWAY TRUST FUND.—

(1) FEDERAL-AID HIGHWAY PROGRAM.—Except as provided in

subsection (e), amounts in the Highway Trust Fund shall be

available, as provided by appropriation Acts, for making expenditures before September 30, 2009 (October 1, 2009, in the

case of expenditures for administrative expenses), to meet

those obligations of the United States heretofore or hereafter

incurred which are authorized to be paid out of the Highway Trust
274

Fund under the Safe, Accountable, Flexible, Efficient

Transportation Equity Act: A Legacy for Users or any other

provision of law which was referred to in this paragraph before the

date of the enactment of such Act (as such Act and provisions of

law are in effect on the date of the enactment of such Act).

(2) TRANSFERS FROM HIGHWAY TRUST FUND FOR CERTAIN

REPAYMENTS AND CREDITS.—

(A) IN GENERAL.—The Secretary shall pay from time to

time from the Highway Trust Fund into the general fund of the

Treasury amounts equivalent to—

(i) the amounts paid before July 1, 2012, under— (I) section 6420 (relating to amounts paid in

respect of gasoline used on farms),

(II) section 6421 (relating to amounts paid in

respect of gasoline used for certain nonhighway

purposes or by local transit systems), and

(III) section 6427 (relating to fuels not used for

taxable purposes), on the basis of claims filed for

periods ending before October 1, 2005, and

(ii) the credits allowed under section 34 (relating to

credit for certain uses of fuel) with respect to fuel used

before October 1, 2011.

The amounts payable from the Highway Trust Fund under

this subparagraph or paragraph (3) shall be determined by

taking into account only the portion of the taxes which are

deposited into the Highway Trust Fund. Clauses (i)(III)

and (ii) shall not apply to claims under section 6427(e).

(B) TRANSFERS BASED ON ESTIMATES.—Transfers under

subparagraph (A) shall be made on the basis of estimates by

the Secretary, and proper adjustments shall be made in

amounts subsequently transferred to the extent prior estimates were in excess or less than the amounts required to be

transferred.

(C) EXCEPTION FOR USE IN AIRCRAFT AND MOTORBOATS.—This paragraph shall not apply to amounts estimated by the Secretary as attributable to use of gasoline and

special fuels in motorboats or in aircraft.

(3) FLOOR STOCKS REFUNDS.—The Secretary shall pay from

time to time from the Highway Trust Fund into the general fund of

the Treasury amounts equivalent to the floor stocks refunds made

before July 1, 2012, under section 6412(a).

(4) TRANSFERS FROM THE TRUST FUND FOR MOTORBOAT

FUEL TAXES.— (A) TRANSFER TO LAND AND WATER CONSERVATION

FUND.—

(i) IN GENERAL.—The Secretary shall pay from

time to time from the Highway Trust Fund into the land

and water conservation fund provided for in title I of the

Land and Water Conservation Fund Act of

1965 amounts (as determined by the Secretary) equivalent to the motorboat fuel taxes received on or after

October 1, 2005, and before October 1, 2011.

(ii) LIMITATION.—The aggregate amount transferred under this subparagraph during any fiscal year

shall not exceed $1,000,000.

(B) EXCESS FUNDS TRANSFERRED TO SPORT FISH RESTORATION AND BOATING TRUST FUND ANY AMOUNTS IN THE

HIGHWAY TRUST FUND.—

(i) which are attributable to motorboat fuel taxes,

and

(ii) which are not transferred from the Highway

Trust Fund under subparagraph (A), shall be transferred

by the Secretary from the Highway Trust Fund into the

Sport Fish Restoration and Boating Trust Fund.

(C) MOTORBOAT FUEL TAXES.—For purposes of this

paragraph, the term ‘‘motorboat fuel taxes’’ means the

taxes under section 4041(a)(2) with respect to special

motor fuels used as fuel in motorboats and under section

4081 with respect to gasoline used as fuel in motorboats, but

only to the extent such taxes are deposited into the Highway

Trust Fund.

(D) DETERMINATION.—The amount of payments made

under this paragraph after October 1, 1986 shall be determined by the Secretary in accordance with the methodology described in the Treasury Department’s Report to

Congress of June 1986 entitled ‘‘Gasoline Excise Tax Revenues Attributable to Fuel Used in Recreational Motorboats.’’

(5) TRANSFERS FROM THE TRUST FUND FOR SMALL-ENGINE

FUEL TAXES.—

(A) IN GENERAL.—The Secretary shall pay from time to

time from the Highway Trust Fund into the Sport Fish

Restoration and Boating Trust Fund amounts (as determined by him) equivalent to the small-engine fuel taxes received on or after December 1, 1990, and before October 1,

2011.

(B) SMALL-ENGINE FUEL TAXES.—For purposes of this

paragraph, the term ‘‘small-engine fuel taxes’’ means the

taxes under section 4081 with respect to gasoline used as a

fuel in the nonbusiness use of small-engine outdoor

power equipment, but only to the extent such taxes are deposited into the Highway Trust Fund.

(7) TRANSFERS FROM THE TRUST FUND FOR CERTAIN AVIATION

FUEL TAXES.—The Secretary shall pay at least monthly from the

Highway Trust Fund into the Airport and Airway Trust Fund

amounts (as determined by the Secretary) equivalent to the taxes

received on or after October 1, 2005, and before October 1,

2011, under section 4081 with respect to so much of the rate

of tax as does not exceed—

(A) 4.3 cents per gallon of kerosene with respect to

which a payment has been made by the Secretary under
275

section 6427(l)(4), and

(B) 21.8 cents per gallon of kerosene with respect to

which a payment has been made by the Secretary under

section 6427(l)(5). Transfers under the preceding sentence

shall be made on the basis of estimates by the Secretary,

and proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in

excess of or less than the amounts required to be transferred. Any amount allowed as a credit under section 34 by

reason of paragraph (4) or (5) of section 6427(l) shall be

treated for purposes of subparagraphs (A) and (B) as a

payment made by the Secretary under such paragraph.

(d) ADJUSTMENTS OF APPORTIONMENTS.—

(1) ESTIMATES OF UNFUNDED HIGHWAY AUTHORIZATIONS AND

NET HIGHWAY RECEIPTS.—The Secretary of the Treasury, not less

frequently than once in each calendar quarter, after consultation

with the Secretary of Transportation, shall estimate—

(A) the amount which would (but for this subsection) be

the unfunded highway authorizations at the close of the next

fiscal year, and

(B) the net highway receipts for the 48-month period

beginning at the close of such fiscal year.

(2) PROCEDURE WHERE THERE IS EXCESS UNFUNDED HIGHWAY AUTHORIZATIONS.—If the Secretary of the Treasury determines for any fiscal year that the amount described in paragraph

(1)(A) exceeds the amount described in paragraph (1)(B)—

(A) he shall so advise the Secretary of Transportation, and

(B) he shall further advise the Secretary of

Transportation as to the amount of such excess.

(3) ADJUSTMENT OF APPORTIONMENTS WHERE UNFUNDED

AUTHORIZATIONS EXCEED 4 YEARS’ RECEIPTS.—

(A) DETERMINATION OF PERCENTAGE.—If, before any

apportionment to the States is made, in the most recent

estimate made by the Secretary of the Treasury there is an

excess referred to in paragraph (2)(B), the Secretary of

Transportation shall determine the percentage which —

(i) the excess referred to in paragraph (2)(B), is of

(ii) the amount authorized to be appropriated from

the Trust Fund for the fiscal year for apportionment to the

States.

If, but for this sentence, the most recent estimate would be

one which was made on a date which will be more than

3 months before the date of the apportionment, the Secretary of the Treasury shall make a new estimate under

paragraph (1) for the appropriate fiscal year.

(B) ADJUSTMENT OF APPORTIONMENTS.—If the Secretary of Transportation determines a percentage under

subparagraph (A) for purposes of any apportionment, notwithstanding any other provision of law, the Secretary of

Transportation shall apportion to the States (in lieu of the

amount which, but for the provisions of this subsection, would

be so apportioned) the amount obtained by reducing the

amount authorized to be so apportioned by such percentage.

(4) APPORTIONMENT OF AMOUNTS PREVIOUSLY WITHHELD

FROMAPPORTIONMENT.—If, after funds have been withheld from

apportionment under paragraph (3)(B), the Secretary of the

Treasury determines that the amount described in paragraph

(1)(A) does not exceed the amount described in paragraph

(1)(B) or that the excess described in paragraph (1)(B) is less

than the amount previously determined, he shall so advise the

Secretary of Transportation. The Secretary of Transportation shall

apportion to the States such portion of the funds so with- held

from apportionment as the Secretary of the Treasury has advised

him may be so apportioned without causing the amount

described in paragraph (1)(A) to exceed the amount de- scribed in

paragraph (1)(B). Any funds apportioned pursuant to the

preceding sentence shall remain available for the period for which

they would be available if such apportionment took effect with the

fiscal year in which they are apportioned pursuant to the

preceding sentence.

(5) DEFINITIONS.—For purposes of this subsection—

(A) UNFUNDED HIGHWAY AUTHORIZATIONS.—The term

‘‘unfunded highway authorizations’’ means, at any time, the excess (if any) of—

(i) the total potential unpaid commitments at such

time as a result of the apportionment to the States of the

amounts authorized to be appropriated from the Highway

Trust Fund, over

(ii) the amount available in the Highway Trust

Fund at such time to defray such commitments (after all

other unpaid commitments at such time which are

payable from the Highway Trust Fund have been de- frayed). (B) NET HIGHWAY RECEIPTS.—The term ‘‘net highway

receipts’’ means, with respect to any period, the excess of—

(i) the receipts (including interest) of the Highway

Trust Fund during such period, over

(ii) the amounts to be transferred during such period

from such Fund under subsection (c) (other than

paragraph (1) thereof).

(6) MEASUREMENT OF NET HIGHWAY RECEIPTS.—For purposes of making any estimate under paragraph (1) of net highway receipts for periods ending after the date specified in subsection (b)(1), the Secretary shall treat—

(A) each expiring provision of subsection (b) which is

related to appropriations or transfers to the Highway

Trust Fund to have been extended through the end of the

48-month period referred to in paragraph (1)(B), and

(B) with respect to each tax imposed under the sections
276

referred to in subsection (b)(1), the rate of such tax during the

48-month period referred to in paragraph (1)(B) to be the

same as the rate of such tax as in effect on the date of such

estimate.

(7) REPORTS.—Any estimate under paragraph (1) and any

determination under paragraph (2) shall be reported by the

Secretary of the Treasury to the Committee on Ways and

Means of the House of Representatives, the Committee on Finance of the Senate, the Committees on the Budget of both

Houses, the Committee on Public Works and Transportation of

the House of Representatives, and the Committee on

Environment and Public Works of the Senate.

(e) ESTABLISHMENT OF MASS TRANSIT ACCOUNT.—

(1) CREATION OF ACCOUNT.—There is established in the

Highway Trust Fund a separate account to be known as the

‘‘Mass Transit Account’’ consisting of such amounts as may be

transferred or credited to the Mass Transit Account as provided in this subsection or section 9602(b).

(2) TRANSFERS TO MASS TRANSIT ACCOUNT.—The Secretary of

the Treasury shall transfer to the Mass Transit Account the mass

transit portion of the amounts appropriated to the Highway Trust

Fund under subsection (b) which are attributable to taxes under

sections 4041 and 4081 imposed after March 31,

1983. For purposes of the preceding sentence, the term ‘‘mass

transit portion’’ means, for any fuel with respect to which tax was

imposed under section 4041 or 4081 and otherwise deposited into

the Highway Trust Fund, the amount determined at the rate of—

(A) except as otherwise provided in this sentence, 2.86

cents per gallon,

(B) 1.43 cents per gallon in the case of any partially

exempt methanol or ethanol fuel (as defined in section

4041(m)) none of the alcohol in which consists of ethanol,

(C) 1.86 cents per gallon in the case of liquefied natural

gas,

(D) 2.13 cents per gallon in the case of liquefied petroleum gas, and

(E) 9.71 cents per MCF (determined at standard temperature and pressure) in the case of compressed natural

gas.

(3) EXPENDITURES FROM ACCOUNT.—Amounts in the Mass

Transit Account shall be available, as provided by appropriation

Acts, for making capital or capital related expenditures (including

capital expenditures for new projects) before October 1, 2009, in

accordance with the Safe, Accountable, Flexible, Efficient

Transportation Equity Act: A Legacy for Users or any other

provision of law which was referred to in this paragraph before the

date of the enactment of such Act (as such Act and provisions of

law are in effect on the date of the enactment of such Act).

(4) LIMITATION.—Rules similar to the rules of subsection (d)

shall apply to the Mass Transit Account.

(5) PORTION OF CERTAIN TRANSFERS TO BE MADE FROM ACCOUNT.—

(A) IN GENERAL.—Transfers under paragraphs (2), (3), and (4) of subsection (c) shall be borne by the Highway Account and the Mass Transit Account in proportion to the

respective revenues transferred under this section to the

Highway Account (after the application of paragraph (2)) and

the Mass Transit Account.

(B) HIGHWAY ACCOUNT.—For purposes of subparagraph (A), the term ‘‘Highway Account’’ means the portion of

the Highway Trust Fund which is not the Mass Transit

Account.

(f) DETERMINATION OF TRUST FUND BALANCES AFTER SEPTEMBER 30, 1998.—For purposes of determining the balances of the

Highway Trust Fund and the Mass Transit Account after September 30, 1998—

(1) the opening balance of the Highway Trust Fund (other

than the Mass Transit Account) on October 1, 1998, shall be

$8,000,000,000, and

(2) notwithstanding section 9602(b), obligations held by

such Fund after September 30, 1998, shall be obligations of the

United States which are not interest-bearing. The Secretary

shall cancel obligations held by the Highway Trust Fund to reflect

the reduction in the balance under this subsection.

* * * * * * *

Subchapter B—General Provisions

Sec. 9601. Transfer of amounts. Sec. 9602. Management of Trust Funds.

SEC. 9601. TRANSFER OF AMOUNTS.

The amounts appropriated by any section of subchapter A to any

Trust Fund established by such subchapter shall be transferred at

least monthly from the general fund of the Treasury to such Trust Fund

on the basis of estimates made by the Secretary of the Treasury of the

amounts referred to in such section. Proper adjustments shall be

made in the amounts subsequently transferred to the extent prior

estimates were in excess of or less than the amounts required to be

transferred.

SEC. 9602. MANAGEMENT OF TRUST FUNDS.

(a) REPORT.—It shall be the duty of the Secretary of the Treasury

to hold each Trust Fund established by subchapter A, and

(after consultation with any other trustees of the Trust Fund) to re- port

to the Congress each year on the financial condition and the results of

the operations of each such Trust Fund during the pre- ceding fiscal

year and on its expected condition and operations during the next 5

fiscal years. Such report shall be printed as a House document of the

session of the Congress to which the report is made.

(b) INVESTMENT.—
277

(1) IN GENERAL.—It shall be the duty of the Secretary of the

Treasury to invest such portion of any Trust Fund established by

subchapter A as is not, in his judgment, required to meet current

withdrawals. Such investments may be made only in interestbearing obligations of the United States. For such purpose, such

obligations may be acquired—

(A) on original issue at the issue price, or

(B) by purchase of outstanding obligations at the market

price.

(2) SALE OF OBLIGATIONS.—Any obligation acquired by a

Trust Fund established by subchapter A may be sold by the

Secretary of the Treasury at the market price.

(3) INTEREST ON CERTAIN PROCEEDS.—The interest on, and

the proceeds from the sale or redemption of, any obligations held

in a Trust Fund established by subchapter A shall be

credited to and form a part of the Trust Fund.

* * * * * * *
278

INTERNATIONAL AIR TRANSPORTATION COMPETITION

ACT OF 1979

"the Wright Amendment"

Section 29 of the International Air Transportation Competition Act of 1979,

P.L. 96-192; 94 Stat. 98 (1980):

Section 29. (a) Except as provided in subsection (c), notwithstanding

any other provision of law, neither the Secretary of Transportation, the

Civil Aeronautics Board, nor any other officer or employee of the United

States shall issue, reissue, amend, revise, or otherwise modify (either by

action or inaction) any certificate or other authority to permit or otherwise

authorize any person to provide the transportation of individuals, by air, as

a common carrier for compensation or hire between Love Field, Texas,

and one or more points outside the State of Texas, except (1) charter air

transportation not to exceed ten flights per month, and (2) air

transportation provided by commuter airlines operating aircraft with a

passenger capacity of 56 passengers or less.

(b) Except as provided in subsections (a) and (c), notwithstanding

any other provision of law, or any certificate or other authority heretofore

or hereafter issued thereunder, no person shall provide or offer to provide

the transportation of individuals, by air, for compensation or hire as a

common carrier between Love Field, Texas, and one or more points

outside the State of Texas, except that a person providing service to a

point outside of Texas from Love Field on November 1, 1979, may

continue to provide service to such point.

(c) Subsections (a) and (b) shall not apply with respect to, and it is

found consistent with the public convenience and necessity to authorize,

transportation of individuals, by air, on a flight between Love Field, Texas,

and one or more points within the States of Louisiana, Arkansas,

Oklahoma, New Mexico, Missouri, and Texas by an air carrier, if (1) such

air carrier does not offer or provide any through service or ticketing with

another air carrier or foreign air carrier, and (2) such air carrier does not

offer for sale transportation to or from, and the flight or aircraft does not

serve, any point which is outside any such State. Nothing in this

subsection shall be construed to give authority not otherwise provided by

law to the Secretary of Transportation, the Civil Aeronautics Board, any

other officer or employee of the United States, or any other person.

(d) This section shall not take effect if enacted after the enactment of

the Aviation Safety and Noise Abatement Act of 1979.

* * * * * * *

"the Shelby Amendment"

Section 337 of the Department of Transportation and Related Agencies

Appropriations Act, 1998, P.L. No. 105-66, 111 Stat. 1425, 1447 (1997):

(a) IN GENERAL – For purposes of the exception set forth in

section 29(a)(2) the term “passenger capacity of 56

passengers or less” includes any aircraft, except aircraft

exceeding gross aircraft weight of 300,000 pounds,

reconfigured to accommodate 56 or fewer passengers if the

total number of passenger seats installed on the aircraft does

not exceed 56.

(b) INCLUSION OF CERTAIN STATES IN EXEMPTION – The

first sentence of section 29(c) of [the Wright Amendment] is

amended by inserting “Kansas, Alabama, Mississippi,” before

“and Texas”.

(c) SAFETY ASSURANCE – The Administrator of the Federal

Aviation Administration shall monitor the safety of flight

operations in the Dallas-Fort Worth metropolitan area and

take such actions as may be necessary to ensure safe

aviation operations. If the Administrator must restrict aviation

operations in the Dallas-Fort Worth area to ensure safety, the

Administrator shall notify the House and Senate Committees

on Appropriations as soon as possible that an unsafe

airspace management situation existed requiring the

restrictions.

* * * * * * *