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[Senate Report 110-144]
[From the U.S. Government Publishing Office]

110th Congress 
 1st Session                     SENATE                          Report
                                                                110-144
_______________________________________________________________________

                                     

                                                       Calendar No. 329

           AVIATION INVESTMENT AND MODERNIZATION ACT OF 2007

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1300

DATE deg.August 3, 2007.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred tenth congress
                             first session

                   DANIEL K. INOUYE, Hawaii, Chairman
                   TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West         JOHN McCAIN, Arizona
    Virginia                         TRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California            GORDON H. SMITH, Oregon
BILL NELSON, Florida                 JOHN ENSIGN, Nevada
MARIA CANTWELL, Washington           JOHN E. SUNUNU, New Hampshire
FRANK R. LAUTENBERG, New Jersey      JIM DeMINT, South Carolina
MARK PRYOR, Arkansas                 DAVID VITTER, Louisiana
THOMAS CARPER, Delaware              JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
          Margaret Cummisky, Staff Director and Chief Counsel
         Lila Helms, Deputy Staff Director and Policy Director
               Jean Toal Eisen, Senior Professional Staff
     Christine Kurth, Republican Staff Director and General Counsel
  Kenneth Nahigian, Republican Deputy Staff Director and Chief Counsel
                                                       Calendar No. 329
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-144

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

 
           AVIATION INVESTMENT AND MODERNIZATION ACT OF 2007

                                _______
                                

                 August 3, 2007.--Ordered to be printed

                                _______
                                

       Mr. Inouye, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1300]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1300) to amend title 49, United 
States Code, to authorize appropriations for the Federal 
Aviation Administration for fiscal years 2008 through 2011, to 
improve aviation safety and capacity, to modernize the air 
traffic control system, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment deg. with amendments deg. with amendments 
and recommends that the bill joint resolution deg. (as 
amended) do pass.

                          Purpose of the Bill

  The Aviation Investment and Modernization Act of 2007, S. 
1300, as reported, would: (a) reauthorize the FAA for four 
years, including the authorization of funding for the FAA's 
Operations, Facilities and Equipment (F&E), Airport Improvement 
Program (AIP), and Research, Engineering, and Development 
(R,E,&D) accounts; (b) provide dedicated funding for 
modernization and improve oversight to ensure that FAA manages 
and implements the Next Generation Air Transportation System 
(NextGen) in a safe, efficient, and effective manner; (c) 
streamline the passenger facility charge (PFC) process; (d) 
strengthen programs for traveling consumers and small community 
access to air service; and (e) promote environmental and safety 
improvements to the National Airspace System (NAS).

                          Background and Needs

  The FAA employs about 47,000 people and has an annual budget 
of approximately $14 billion. It regulates nearly all aspects 
of aviation, including safety, manufacturing, and licensing. It 
also operates the Nation's air traffic control (ATC) system, 
which includes nearly 15,000 controllers and thousands of 
pieces of equipment and facilities. Modernizing the ATC system 
is one of the major challenges currently facing the FAA.
  A primary concern regarding the reauthorization of FAA is 
ensuring that the air transportation system is modernized to 
keep pace with the projected growth in demand for air travel 
over the coming decades. According to the FAA, in 2005, 738 
million passengers flew on U.S. commercial air carriers, 
compared with 579 million in 1995 and 395 million in 1985. The 
FAA forecasts this figure to reach one billion passengers 
before 2020. Congestion and delay problems have increased with 
the growth in air traffic, which negatively affects travelers 
and the economy. A recent economic study \1\ reported 
commercial airline passenger delays in 2000, which averaged 12 
minutes per flight segment, totaled 142 million hours of 
passenger delay, and amounted to $9.4 billion in U.S. delay 
costs. Hundreds of millions of dollars in additional delay 
costs accrued to general aviation (GA) and commercial cargo 
operators.
---------------------------------------------------------------------------
    \1\ The National Economic Impact of Civil Aviation, July 2002, DRI-
WEFA, Inc., A Global Insight Company.
---------------------------------------------------------------------------
  The FAA has begun the process of modernizing the air 
transportation system through the establishment of the Joint 
Planning and Development Office (JPDO) and the implementation 
of plans for NextGen. NextGen is intended to transform the 
current ground-based radar system into a networked, satellite-
based system. The Committee expects that NextGen will use 
advanced computers, precision guidance through Global 
Positioning Systems, computer-based decision assistance 
programs, on-board automation, and data-link communications. 
Expanding the current system to meet the anticipated growth in 
air traffic is not feasible because the current system is 
reaching the technical limits of its potential for growth. In 
addition to the efforts at the JPDO, the FAA is incorporating 
critical NextGen operational concepts and changes into its 
Operational Evolution Plan (OEP).
  Significant progress has been made towards modernization of 
the NAS as a result of FAA's on-going efforts. The FAA is 
beginning to put into operation three significant modernization 
programs: Automatic Dependent Surveillance Broadcast (ADS-B); 
Airport Surface Detection Equipment, Model X; and the System-
Wide Information Management system (SWIM). However, the bulk of 
the agency's efforts still fall within the planning phase, and 
industry stakeholders have raised concerns regarding the pace 
of modernization, the potential scope of NextGen's 
implementation, unclear equipage costs and needs for the 
private sector, and FAA and JPDO's ability to lead this 
comprehensive effort. Suggested changes from stakeholders have 
included finishing and publishing the enterprise architecture, 
or blueprints, for NextGen and fast-tracking the planning and 
implementation of key modernization programs. The FAA has 
proposed a demonstration pilot program for key NextGen 
technologies, and recently published its concept of operations 
for NextGen, which is a precursor to the enterprise 
architecture.
    The FAA estimates it will cost the Federal Government 
approximately $15 to $22 billion to modernize the ATC system 
between now and 2025. However, estimating costs over a long 
timeframe for complex systems is a difficult task, particularly 
as the NextGen system is expected to evolve to some extent, so 
cost estimates in the near-term have more certainty compared to 
later years. The FAA has budgeted approximately $4.6 billion 
for modernization over the next 5 years. Just over $900 million 
of this funding is for the core NextGen programs ADS-B, SWIM, 
and other demonstration projects for testing modernization 
technologies. Partner agencies will contribute another $300 
million for NextGen projects in fiscal year (FY) 2008. In 
addition to the Federal investment in ATC infrastructure, it is 
estimated there will be an additional investment of $14 to $20 
billion required by the private sector for avionics, with 
manufacturers estimating that it could cost between $200,000 
and $500,000 per plane to retrofit commercial aircraft with the 
necessary avionics. Avionics manufacturers also indicate that 
it could take two to three years to work out technical and 
performance standards and another five to seven years to 
complete the manufacturing and certification processes for the 
required avionics.
    Some stakeholders have raised concerns that the Airport and 
Airway Trust Fund (Trust Fund) will not provide sufficient 
funding for modernization and that the current tax and fee 
system supporting the Trust Fund is inequitable. Congress 
created the Trust Fund in the Airport and Airway Revenue Act of 
1970 (P.L. 91-258) to provide a dedicated source of funding for 
aviation programs. The Trust Fund collects aviation excise 
taxes and other fees that fund a large portion of the FAA's 
annual budget. The primary taxes and fees are levied on 
passenger tickets, passenger flight segments, international 
arrivals and departures, cargo waybills, and aviation fuels.
    The Trust Fund provides all funding for the FAA's AIP, F&E, 
R,E,&D accounts, and has contributed significantly to the 
agency's Operations account. The FAA's Operations, as a result 
of long-standing agreements, also receives funding from U.S. 
Treasury General Fund (General Fund). The split between Trust 
Fund and General Fund monies for Operations funding remains 
controversial. Initially, the Trust Fund was envisioned as the 
means to fund only the NAS infrastructure and modernization 
needs, but over time has generally also paid for large portions 
of the FAA's Operating budget.
    Trust Fund revenues have consistently fallen over the past 
several years due in part to a downturn in passenger air 
traffic. In addition, the uncommitted balance in the Trust Fund 
has fallen because actual revenue receipts have fallen short of 
previous revenue estimates. Under current law, the amount 
appropriated from the Trust Fund annually is based on estimates 
made prior to the year in which the revenues are collected. 
Over the past several years, revenues have been overestimated 
in the appropriation process compared to the actual 
collections, and the uncommitted balance has been drawn down to 
make up the difference.
    If future revenue estimates for the Trust Fund continue to 
be inaccurate, the results could be serious. The transition 
from the current ATC system to a modernized one will require 
FAA to operate and potentially pay for both systems until the 
agency is certain the new one is operating safely and has an 
appropriate back-up system in place. If the Trust Fund is 
depleted, either additional General Funds would have to be 
secured, or there would need to be significant cuts to FAA's 
budget. To some extent, over the past several years, these 
consequences have already occurred. Despite budgetary 
protections, Congress has systematically under-funded FAA 
modernization by providing only 85 percent of authorized 
funding levels for the F&E account since 2003.
    Given the concerns over the financial status of the Trust 
Fund, the Committee's FAA reauthorization proposal sought to 
ensure that there would be enough funding to support 
modernization of the system and the benefits it would provide. 
S. 1300 would create a dedicated surcharge of $25 per flight to 
fund modernization of the air transportation system. This 
surcharge is estimated to raise about $400 million annually for 
modernization, with commercial aircraft expected to pay more 
than $350 million of the total. The surcharge also would be 
levied on high-performance GA jet and turboprop aircraft that 
fly into controlled airspace. The surcharge has been estimated 
to raise about $40 million a year from this segment of the 
industry. Piston-engine aircraft, which account for 
approximately 90 percent of the GA fleet, would be completely 
exempted from the surcharge.
    The $25 surcharge will have a minimal affect on the costs 
of operating the jet aircraft to which the surcharge will apply 
as it represents a small percentage of the operating costs of 
high-performance aircraft. The average cost of operating 
turboprops and corporate jets ranges from approximately $800 
per hour to more than $6,000 per hour.
    The $25 surcharge is also minimal relative to the 
investments made to purchase these aircraft. The purchase price 
for an up to 9-seat single-engine turboprop aircraft starts at 
about $1.3 million and can reach $3.3 million, while larger 
multi-engine turboprop aircraft range from $1.4 million to $6.1 
million. Turbojets are even more expensive. For example, the 
Cessna Citation Encore CE-560 costs about $8 million to 
purchase, while the larger Gulfstream G-V ranges from $30 
million to $40 million. The Eclipse 500, one of the new 
generation of very light jets (VLJs), has an estimated price of 
$1.5 million.

                         Summary of Provisions

                 TITLE I--AUTHORIZATIONS AND FINANCING

    Title I reauthorizes the FAA's four accounts: Operations; 
F&E; the AIP; and R,E,&D at specific amounts for the FYs 2008 
through 2011. Table 1 provides details of the proposed 
authorized amounts for the four major accounts.

          TABLE 1: PROPOSED AUTHORIZED AMOUNTS FOR FAA ACCOUNTS
                          (dollars in millions)
------------------------------------------------------------------------
                                        2008     2009     2010     2011
------------------------------------------------------------------------

Operations-----------------------------8,726----8,978----9,305----9,590-
------------------------------------------------------------------------
Facilities & Equipment                 2,572    2,923    3,079    3,317
------------------------------------------------------------------------
Research Engineering & Development       140      191      191      194
------------------------------------------------------------------------
Airport Improvement Program            3,800    3,900    4,000    4,100
------------------------------------------------------------------------
Total                                 15,238   15,992   16,575   17,201
------------------------------------------------------------------------

    The authorized levels of funding for Operations, F&E, and 
R,E,&D are consistent with the Administration's proposed needs 
for these accounts. The authorizations for AIP are set at 
levels higher than the Administration's proposal but consistent 
with funding levels authorized in Vision 100-Century of 
Aviation Reauthorization Act (Vision 100, P.L. 108-176). The 
existing budgetary protections for FAA's accounts also are 
extended through 2011.
    A provision is included in Title I creating an Air Traffic 
Modernization Fund (modernization fund) to ensure sufficient 
funding is provided for modernization. The modernization fund 
would be supported through a surcharge of $25 per flight on 
commercial and GA jet and turboprop flights, which access 
airspace controlled by FAA. The estimated $400 million raised 
annually from the surcharge would be specifically dedicated to 
modernization costs approved by the Air Traffic Control 
Modernization Oversight Board (Modernization Board). Use of the 
fund may include F&E account expenditures or repayment of bonds 
issued under the proposed bonding authority. The bill proposes 
providing FAA authority to issue up to $5 billion in bonds 
between 2009 and 2025 to support modernization costs.
    The bill includes a number of exemptions from the $25 
surcharge. Jet aircraft exempted include government and 
military aircraft, agricultural aircraft, and air ambulance 
flights. Training flights also may be exempted at the 
discretion of the FAA Administrator. Approximately 90 percent 
of the GA fleet is exempt from the surcharge as it is comprised 
primarily of piston-powered aircraft. The Committee also 
recognizes the unique nature and reliance that Alaska and 
Hawaii have on aviation for the transport of basic goods. The 
Committee provision specifically exempts all intrastate flights 
in Alaska and Hawaii from the $25 surcharge except those 
flights that both originate and terminate in airspace 
controlled by a terminal radar approach control facility 
(TRACON) or a Combined Center/Radar Approach Control facility. 
The exemption ensures that only intrastate flights that fully 
utilize air traffic services are subject to the $25-per-flight 
surcharge. To understand Alaska and Hawaii's reliance on 
aviation it is important to take into account each State's 
size, environment, and infrastructure. While Alaska is the 
largest State with respect to land area, it has approximately 
14,000 miles of public roads, which is equivalent to the miles 
of road in Vermont, a State with less than 2 percent of the 
land area of Alaska. Furthermore, 70 percent of Alaska's 
communities are not connected to a land highway system. This 
lack of highway infrastructure creates a situation where 
commuter and air taxi flights routinely serve as the 
traditional road system, making aircraft essential for 
personal, commercial, cargo, and mail transportation to most 
Alaskan communities.
    Of the $400 million raised by the new surcharge, estimates 
by the Committee, in consultation with FAA, suggest commercial 
airlines would contribute more than $350 million of the total, 
while GA jet and turboprop flights would make up the 
difference. A provision prevents the FAA from collecting the 
surcharge if appropriations for the F&E account in a given year 
do not at least equal authorized amounts. The revenues from 
this $25 surcharge are treated as offsetting collections to the 
appropriation for F&E.
    The Committee expects the FAA to report to Congress on the 
impact the $25-per-flight surcharge will have on the aviation 
industry by June 30, 2008.

                     TITLE II--AIRPORT IMPROVEMENTS

    Title II focuses on the AIP and the PFC program and 
proposes a number of new initiatives to aid airport 
development. The first provision would streamline the PFC 
process by simplifying approval requirements for imposing or 
amending PFCs, while still retaining audit controls and FAA 
oversight of projects and expenditures. Additional requirements 
would be imposed for proposing to increase PFCs or using the 
revenue for inter-modal projects. This process is based on a 
successful pilot program for streamlining the PFC process 
authorized for small airports in Vision 100.
    This section also would require the Secretary of 
Transportation to establish and conduct a pilot program to 
allow six airports to impose a PFC without regard to dollar 
amount limitations. The six airports in the program would be 
required to collect the charge from a passenger at the airport, 
via the Internet, or in any other reasonable manner, except 
that these airports could not collect the fee through an air 
carrier. The same eligibility and oversight criteria applied 
under the regular PFC authority would still apply to the use of 
the fees collected through this program.
    A second pilot program would permit the FAA to transfer to 
the airport the responsibility for certain terminal area 
navigation equipment, such as instrument landing and approach 
lighting systems. The airports would be required to operate and 
maintain transferred equipment in accordance with FAA 
standards, allow periodic FAA inspections, and replace the 
equipment when needed. The provision includes explicit 
authority for airports to add to their airfield rate base any 
costs of owning and operating the equipment. Other Title II 
provisions would: (a) expand eligibility for the AIP noise set-
aside program and guarantee a minimum amount of funding; (b) 
authorize AIP funding for studies to optimize airport 
operational procedures for near-term environmental 
improvements; and (c) authorize a pilot program to demonstrate 
the value of experimental environmental technologies at 
airports.
    The Committee has long held an interest in the O'Hare 
Modernization Program (OMP). The Committee supports the 
progress being made to significantly reduce delays and increase 
capacity at this airport that is integral to the Nation's 
entire airport system. One of the distinctive elements of the 
OMP is the focus on the use of sustainable development 
initiatives in airport construction. The Committee encourages 
the FAA to work with the OMP to implement these important 
environmental initiatives.

                 TITLE III--FAA ORGANIZATION AND REFORM

    Title III focuses on FAA management practices and would 
establish a Modernization Board to provide specific oversight 
of FAA's modernization activities. The Modernization Board's 
responsibilities would include: (a) providing advice on the 
strategic plan for FAA modernization; (b) approving 
modernization expenditures in excess of $100 million; and (c) 
approving selections of the leaders for the Air Traffic 
Organization (ATO) and the JPDO. The Modernization Board would 
be composed of seven members: the FAA Administrator, a 
Department of Defense (DOD) representative, one member 
representing the public interest, one Chief Executive Officer 
(CEO) of an airport, one CEO of a passenger or cargo airline, 
one FAA labor union representative, and one GA representative. 
The Modernization Board would replace the Federal Aviation 
Management Advisory Council and the Air Traffic Services 
Subcommittee.
    To support the implementation of the ADS-B system, a pilot 
program would be established to allow State and local 
governments, including airports, to purchase, operate, and 
maintain ADS-B ground equipment. Under this pilot program, 
acquisition of this equipment would be eligible for AIP grants 
at a 90 percent Federal match. The provision includes language 
to provide flexibility in contracting to the FAA and project 
sponsors to permit the most efficient acquisition of ground 
stations funded under the pilot program.
    This title also would establish a new process for resolving 
collective bargaining labor disputes at the FAA that are at an 
impasse. The Administrator of the FAA and an employees' union 
would be required first to use the mediation services of the 
Federal Mediation and Conciliation Service (FMCS) should an 
impasse be reached during the collective bargaining process. If 
mediation fails, then the Administrator and the employees' 
union would be required to use a unique process at the Federal 
Services Impasses Panel (FSIP) for purposes of resolving the 
issues through binding arbitration using a private arbitration 
board consisting of three members. Specifically, the provision 
would establish a process whereby the FSIP Administrator would 
request the Director of FMCS identify at least 15 arbitrators 
from the private sector that have Federal Government experience 
from which the FAA Administrator and the employees' union each 
would choose one. The two arbitrators chosen would then select 
a third arbitrator from the original list. If the two 
arbitrators are unable to agree on a third arbitrator, the FAA 
and the employees' union would select the third arbitrator by 
alternately striking names from the list of remaining 
arbitrators until one name remains. In rendering any decisions 
the arbitration board is required to take into consideration 
the effect of its arbitration decisions on the FAA's ability to 
attract and retain a qualified workforce and on the agency's 
budget. Decisions of the arbitration board must be reached 
within 90 days of appointment and are conclusive and binding. 
Jurisdiction over the enforcement of the arbitration decisions 
would be in the U.S. District Court for the District of 
Columbia.
    In addition, Title III would require the FAA to conduct an 
assessment of the agency's facility needs under the NextGen 
system. The Modernization Board would review this assessment 
and then make recommendations to the President, the Senate 
Commerce Committee, and the House Transportation and 
Infrastructure Committee. Other provisions include a 
clarification of FAA's authority to enter into reimbursable 
agreements and a requirement for FAA to issue a report and 
finalize a rulemaking on ADS-B. The FAA has identified ADS-B 
technology as the backbone of future surveillance in the NAS. A 
Program Office to oversee ADS-B implementation has been 
established, and it is moving forward with the initial project 
to purchase and install the necessary ADS-B ground stations. 
However, the real benefits to the system, in terms of increased 
efficiency, safety and fuel savings and decreased environmental 
impact, will only be realized when ADS-B-based systems also are 
used for air-to-air applications. With these applications, 
flight crews ultimately will have the same situational 
awareness as controllers and be able to accomplish new tasks 
that result in the needed benefits. In order for the NAS to 
benefit from ADS-B and also to enhance safety and prevent 
runway incursions, the agency needs to rapidly approve and 
implement aircraft based ADS-B air-to-air applications. The 
Committee is requiring FAA to report its progress in this 
regard and to accelerate its ADS-B rulemaking.

   TITLE IV--AIRLINE SERVICE AND SMALL COMMUNITY SERVICE IMPROVEMENTS

    Title IV focuses on improving airline service and small 
community access to air service. The airline service provisions 
would require each airline to develop contingency plans for 
situations in which the departure of a flight is substantially 
delayed while passengers are confined to an aircraft. The 
provisions would require a plan outlining how the airline will 
ensure the passengers are provided adequate food, potable 
water, and restroom facilities, as well as timely and accurate 
information regarding the status of the flight in the event of 
a significant delay. This plan would have to be filed with the 
Department of Transportation (DOT), which would be required to 
make the information publicly available. In the absence of such 
a plan, the air carrier must permit passengers to deplane after 
three hours have elapsed, unless the pilot believes the flight 
will depart within 30 minutes after the three hour delay, or if 
deplaning raises significant safety or security concerns. These 
service provisions also would mandate improved disclosure of 
flight information to passengers when purchasing tickets. 
Airlines would be required to post the on-time performance of 
chronically delayed, cancelled, or diverted flights on their 
website, and to update that information on a monthly basis. The 
provisions would require chronically delayed or cancelled 
flights to be identified by the airline when a customer is 
booking a ticket on a website, prior to purchase.
    Most of the remaining provisions in the title propose 
improvements to the Essential Air Service (EAS) and Small 
Community Air Service Development Program (SCASDP). Authorized 
funding for EAS would be increased to at least $133 million, at 
least a $6 million increase from the current authorized amount. 
Other EAS provisions included would: (a) permit the DOT to 
incorporate financial incentives into contracts with EAS 
carriers to encourage better service; (b) authorize longer-term 
EAS contracts if it is determined to be in the public interest; 
(c) authorize the development of a program to create incentives 
for large carriers to code-share on service to small 
communities; and (d) require large airlines to code-share on 
EAS flights in up to 10 communities.
    Title IV also would provide for an additional 12 slots at 
Washington National Airport for flights beyond the 1,250 mile 
Perimeter Rule limit and an additional eight slots at the 
airport for flights within the perimeter. Other provisions in 
this title would authorize AIP funding for converting an EAS 
airport into a GA airport if the EAS community exits the 
program; increase funding for contract towers that benefit 
small communities; and modify existing requirements governing 
disputes between EAS communities and their air service 
providers.

                        TITLE V--AVIATION SAFETY

    Title V proposes a number of measures to improve aviation 
safety. The FAA would be required to finalize a rule on fuel 
tank flammability for commercial air carriers by December 31, 
2007, and develop a plan to provide runway incursion 
information to pilots in the cockpit by December 31, 2008. Both 
of these measures were among the National Transportation Safety 
Board's (NTSB) aviation safety priorities. Two flight crew 
fatigue initiatives are instituted. One is a study of pilot 
fatigue to be conducted by the National Academy of Sciences 
that would consider the latest research on fatigue, circadian 
rhythms and international standards. A second provision would 
authorize the FAA to implement the findings of a flight 
attendant fatigue study. Through these provisions the agency is 
encouraged to collaborate directly with others currently 
engaged in fatigue mitigation to assist in the production of 
any studies or recommendations on fatigue. This title also 
would ensure the FAA could continue to access criminal history 
databases to perform critical safety and security functions. 
Several other provisions are included in this title to improve 
emergency medical service helicopter operations. Remaining 
sections include provisions that would: (a) permit access to 
abandoned aircraft type certificates and supplemental type 
certificates to improve FAA safety reviews; (b) clarify FAA's 
work with the Occupational Safety and Health Administration 
(OSHA) to ensure workplace safety; and (c) accelerate FAA's 
development of required navigation performance approach 
procedures.
    The Committee is concerned about runway incursions as a 
significant risk to aviation safety. While the FAA has made 
progress in airport markings, training, and the deployment of 
ground systems, these solutions are insufficient to prevent all 
runway incursions. Over the past four years the incursion rate 
in the U.S. has remained relatively constant. In an effort to 
reduce runway incursions, the Committee recommends that the FAA 
place an emphasis on providing strategic situational awareness 
information to pilots, including aircraft position relative to 
runways and other aircraft; and instantaneous alerting to 
pilots in the event of a potential incursion.

                      TITLE VI--AVIATION RESEARCH

    This title proposes the following initiatives: (a) the 
Airport Cooperative Research Program (ACRP), which conducts 
environmental and other research, would be authorized 
permanently; (b) establishment of a center of excellence to 
study the development of jet fuel from clean coal technology; 
(c) establishment of a consortium to study the reduction of 
civilian aircraft noise, emissions, and energy consumption; (d) 
creation of the Advisory Committee on the Future of Aeronautics 
to examine the best governmental and organizational structures 
for civil aeronautics research and development (R&D); (e) 
requiring the FAA to conduct research on airfield pavement, 
wake turbulence, volcanic ash, and weather; (f) development and 
examination of methods to incorporate unmanned aerial systems 
into the NAS; and (g) reauthorization of a center of excellence 
in applied research and training in the use of advanced 
material in transport aircraft.

                        TITLE VII--MISCELLANEOUS

    This title includes a variety of provisions related to the 
aviation industry and personnel. The most significant provision 
would extend the age limit for commercial airline pilots from 
age 60 to 65. The provision would permit those pilots that turn 
60 after passage of the bill to continue operating commercial 
aircraft until the age of 65 if they are part of a flight crew 
that includes another pilot under the age of 60. The new 
provision would become effective 30 days from the date of 
enactment and mandates a GAO review of the effect, if any, of 
this transition on safety.
    Title VII also includes the following provisions: (a) an 
extension of the war risk insurance program; (b) a human 
intervention management study for flight crews; (c) staffing 
and training provisions for the airport concessions 
disadvantaged business enterprise initiative; (d) a requirement 
for FAA to update its calculation of overflight fees; (e) a 
requirement for GAO to study technical training for FAA 
technical specialists; (f) a phase-out of stage 1 and stage 2 
aircraft; and (g) other miscellaneous program extensions and 
technical corrections.

                          Legislative History

    Senators Rockefeller and Lott, along with Chairman Inouye 
and Vice Chairman Stevens, introduced S. 1300, the Aviation 
Investment and Modernization Act of 2007, on May 3, 2007. The 
Committee also held a series of hearings on reauthorizing the 
FAA in the 109th Congress in preparation for the bill. These 
hearings were followed by several hearings in the 110th 
Congress that focused on the creation of an FAA Reauthorization 
package. On February 15, 2007, a hearing was held on ``The 
Administration's Proposal to Reauthorize the FAA--Part I,'' at 
which FAA Administrator Marion Blakey testified. On March 8, 
2007, a hearing was held on ``The Administration's Proposal to 
Reauthorize the FAA--Part II,'' at which industry stakeholders 
testified. On March 22, 2007, a hearing was held on 
``Modernization of the FAA's Air Traffic Control System,'' at 
which the Administration and stakeholders testified. On April 
11, 2007, a hearing was held on ``Airline Service 
Improvements'' at which the Administration, consumer and 
passenger groups, and airline representatives testified.
    On May 16, 2007, the Committee met in Executive Session 
during which S. 1300 was considered. A managers' amendment that 
made technical and perfecting changes to the provisions of S. 
1300 was offered and approved by voice vote. Technical fixes 
and modifications included in the managers' amendment included 
provisions that would: (a) modify an existing exemption for 
intrastate flights in non-contiguous States from the $25 per 
flight modernization surcharge to include those flights that 
originate or terminate in airspace that is not controlled by a 
TRACON or a Combined Center/Radar Approach Control facility; 
(b) exempt agricultural and training flights from the $25 per 
flight modernization surcharge; (c) change the AIP Federal 
match from 90 percent to 95 percent in the provision for 
airports transitioning from being a small hub to a medium hub; 
(d) modify the definition of airport development eligible for 
AIP funding to include construction of concrete pads for fuel 
trucks to park on while fueling an aircraft at non-primary 
airports; and (e) modify the selection of arbitrators for 
addressing FAA collective bargaining impasses.
    The managers' amendment also included a number of 
provisions that the managers agreed would improve upon several 
titles in the bill, including provisions that would: (a) set a 
minimum discretionary AIP funding level at $520 million 
annually; (b) modify the calculation of apportionment funds for 
airports whose commercial service has been interrupted; (c) add 
an environmental research program to fund demonstration 
projects at airports to test the practical application of 
experimental technologies; (d) require FAA to issue a report 
and rulemaking on the adoption of ADS-B, a key NextGen 
technology for which language was inadvertently excluded from 
S. 1300; (e) require FAA to establish a plan and a coordinating 
body to examine and make recommendations to apply appropriate 
OSHA requirements to the aircraft cabin; (f) specify authorized 
amounts for the ACRP; (g) continue an existing program for 
pavement research; (h) require FAA to conduct safety research 
on wake vortexes, volcanic ash, and weather; (i) ensure FAA 
employees would receive, at minimum, the benefits established 
by the Family and Medical Leave Act; and (j) require FAA to 
have the National Academy of Sciences conduct a study of the 
agency's air traffic controller staffing requirements.
    In addition to the managers' amendment, seven amendments 
were offered during the Executive Session. Senator Nelson 
offered an amendment to strike the $25 modernization fee, which 
was defeated in a roll-call vote (11 Yeas and 12 Nays). Senator 
Cantwell offered an amendment to increase slots at Ronald 
Reagan Washington National airport, which was approved in a 
roll-call vote (12 Yeas and 11 Nays). Senator Ensign offered a 
second degree amendment co-sponsored by Senator McCain to 
Senator Cantwell's slot amendment that would permit air 
carriers with existing slots at the airport to use an 
increasing percentage of those slots for extra-perimeter 
flights, which was defeated by voice vote. Senator Pryor 
offered an amendment to prevent any consolidation at the 
Memphis TRACON facility until a NextGen facilities needs 
assessment is completed, an amendment to require applicants for 
providing EAS to submit marketing plans with their 
applications, and a second degree amendment to make a technical 
correction to the EAS amendment. All of Senator Pryor's 
amendments were approved by voice vote. Finally, Senator 
McCaskill offered an amendment regarding airline labor 
integration issues, which was approved by voice vote.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 17, 2007.
Hon. Daniel K. Inouye,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1300, the Aviation 
Investment and Modernization Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.
    Enclosure.

S. 1300--Aviation Investment and Modernization Act of 2007

    Summary: S. 1300 would authorize appropriations, mainly 
over the 2008-2011 period, for activities of the Federal 
Aviation Administration (FAA). CBO estimates that implementing 
the bill would cost about $49 billion over the 2008-2012 
period, assuming the appropriation of the necessary amounts. In 
addition, we estimate that enacting the bill would reduce net 
direct spending by $457 million over the 2008-2012 period, but 
increase it by nearly $1.8 billion over the 2008-2017 period. 
Finally, CBO and the Joint Committee on Taxation (JCT) estimate 
that enacting S. 1300 would lead to a net increase in revenues 
of $60 million over the 2008-2012 period and $109 million over 
the 2008-2017 period.
    Pursuant to section 203 of S. Con. Res. 21, the Concurrent 
Resolution on the Budget for Fiscal Year 2008, CBO estimates 
that changes in direct spending and revenues from enacting S. 
1300 would not cause an increase in the on-budget deficit 
greater than $5 billion in any of the 10-year periods between 
2018 and 2057.
    S. 1300 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA), but CBO estimates that 
the costs to state, local, and tribal governments of complying 
with these mandates would be small and would not exceed the 
threshold established in UMRA ($66 million in 2007, adjusted 
annually for inflation). Other provisions of the bill would 
benefit states and public institutions of higher education by 
authorizing grants for airport improvements and aviation 
research. Any costs those entities might incur would result 
from complying with conditions of federal assistance.
    S. 1300 would impose several private-sector mandates as 
defined in UMRA. The bill would impose new requirements on 
commercial air carriers, operators of certain general aviation 
aircraft, operators of certain aircraft weighing 75,000 pounds 
or less and operators of emergency medical service helicopters. 
Based on information from the FAA and industry sources, CBO 
estimates that the aggregate direct cost of complying with 
those mandates would exceed the annual threshold established by 
UMRA for private-sector mandates ($131 million in 2007, 
adjusted annually for inflation) in each of the first five 
years the mandates are in effect.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1300 is shown in Table 1. The costs of 
this legislation fall within budget functions 400 
(transportation) and 600 (income security).

                                TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 1300
----------------------------------------------------------------------------------------------------------------
                                                                By fiscal year, in millions of dollars
                                                     -----------------------------------------------------------
                                                        2007      2008      2009      2010      2011      2012
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority/Authorization Level \1\........    11,064       162       127       127        77        77
    Estimated Outlays \2\...........................    15,059     5,161     2,078       901       301       112
Proposed Changes:
    FAA Operations:
        Authorization Level.........................         0     8,726     8,978     9,305     9,590         0
        Estimated Outlays...........................         0     7,766     8,950     9,269     9,559     1,055
    Air Navigation Facilities and Equipment:
        Authorization Level.........................         0     2,572     2,923     3,079     3,317         0
        Estimated Outlays...........................         0     1,492     2,338     2,902     3,184     1,350
    Offsetting Collections from the Modernization
     Surcharge:
        Estimated Authorization Level...............         0         0      -410      -420      -430         0
        Estimated Outlays...........................         0         0      -410      -420      -430         0
    Airport Improvement Program Outlays: \3\
        Authorization Level.........................         0         0         0         0         0         0
        Estimated Outlays...........................         0        62       134       224       320       402
    Research, Engineering, and Development:
        Authorization Level.........................         0       140       191       191       194         0
        Estimated Outlays...........................         0        77       153       185       193        87
    Other Provisions:
        Estimated Authorization Level...............         0        24        46        45        95        10
        Estimated Outlays...........................         0        17        43        48        85        27
        Total Changes:
            Estimated Authorization Level...........         0    11,462    11,728    12,200    12,766        10
            Estimated Outlays.......................         0     9,414    11,208    12,208    12,911     2,921
Spending Under S. 1300:
    Estimated Authorization Level \1\...............    11,064    11,624    11,855    12,327    12,843        87
    Estimated Outlays...............................    15,059    14,575    13,286    13,109    13,212     3,033

                                                 DIRECT SPENDING

Baseline Spending Under Current Law:
    Estimated Budget Authority \3\..................     3,725     3,725     3,725     3,725     3,725     3,725
    Estimated Outlays...............................        40        50        50        50        50        50
Proposed Changes:
     Estimated Budget Authority \3\.................         0       115       109       243       384       494
     Estimated Outlays..............................         0       -69      -123       -76       -40      -149
Spending Under S. 1300:
    Estimated Budget Authority \3\..................     3,725     3,840     3,828     3,968     4,109     4,219
    Estimated Outlays \2\...........................        40       -19       -73       -26        10       -99

                                               CHANGES IN REVENUES

Estimated Revenues..................................         0         *        17        15        15       13
----------------------------------------------------------------------------------------------------------------
Note: * = between -$500,000 and $500,000.
FAA = Federal Aviation Administration.
\1\ The 2007 level is the amount appropriated for that year for FAA operations; facilities and equipment;
  research, engineering, and development; essential air service, and the Joint Planning and Development Office
  (JPDO). The 2008 through 2012 levels reflect amounts authorized to be appropriated under current law for
  essential air service, small community air service, and the JPDO.
\2\ Estimated outlays under current law are from amounts appropriated for 2007 and previous years for FAA
  operations, facilities and equipment; research, engineering, and development; essential airservice; and the
  Joint Planning and Development Office; as well as discretionary outlays from the obligation limitations for
  the Airport Improvement Program, as assumed to continue in the budget resolution baseline.
\3\ Budget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of
  budget authority; however, outlays from that contract authority are subject to limitations on obligations
  specified in appropriation acts and are therefore discretionary.

    Basis of estimate: Implementing S. 1300 would increase 
discretionary spending. Enacting the bill also would increase 
net direct spending and revenues over the next 10 years. Outlay 
estimates are based on historical spending patterns for 
affected programs and on information provided by the Department 
of Transportation (DOT) and FAA staff. For this estimate, CBO 
assumes S. 1300 will be enacted near the end of fiscal year 
2007.

Spending subject to appropriation

    CBO estimates that fully funding aviation programs under S. 
1300 would cost about $9.4 billion in 2008 and $49 billion over 
the 2008-2012 period. That estimate assumes that amounts 
authorized and estimated to be necessary will be provided near 
the start of each fiscal year.
    FAA Operations. S. 1300 would authorize appropriations 
totaling $8.7 billion in 2008 and $36.6 billion over the 2008-
2011 period for FAA operations, particularly for salaries and 
expenses related to operating the air traffic control system. 
(In comparison, the Congress provided $8.3 billion for 
operations in fiscal year 2007.) Assuming appropriation of the 
authorized amounts, CBO estimates such spending would total 
$7.8 billion in 2008 and $36.6 billion over the 2008-2012 
period.
    Air Navigation Facilities and Equipment. S. 1300 would 
authorize appropriations totaling $2.6 billion in 2008 and 
$11.9 billion over the 2008-2011 period for facilities and 
equipment--primarily infrastructure and systems for 
communication, navigation, and radar surveillance related to 
air travel. (In comparison, the Congress provided $2.5 billion 
for such activities during fiscal year 2007.) Assuming 
appropriation of the authorized amounts, CBO estimates 
resulting outlays would total $1.5 billion in 2008 and $11.3 
billion over the 2008-2012 period, with additional spending 
occurring in later years.
    By authorizing appropriations for facilities and equipment 
over the 2008-2011 period, S. 1300 would authorize adjustments 
to contract authority for the airport improvement program in 
those years. Current law provides for increases to contract 
authority (a mandatory form of budget authority) for that 
program in any year that the amounts authorized to be 
appropriated for facilities and equipment exceed amounts 
actually provided in appropriation acts for such activities. 
Any such changes authorized under S. 1300 and triggered by 
annual appropriation acts would be considered changes in direct 
spending, and are discussed later in this estimate (see 
``Direct Spending'').
    Offsetting Collections from the Modernization Surcharge. S. 
1300 would establish a new fee--a surcharge of $25 on certain 
flights--to be used for air traffic control modernization. The 
legislation would specify two alternative budgetary treatments 
for amounts collected from the proposed surcharges, depending 
on certain conditions. In general, the FAA's authority to 
collect surcharges would be subject to appropriation of the 
full amount authorized for FAA facilities and equipment. 
Surcharges collected pursuant to appropriation acts would be 
credited as discretionary offsetting collections (a credit 
against discretionary spending), reducing net appropriations 
for facilities and equipment. Under S. 1300, however, if the 
FAA uses newly proposed borrowing authority (a form of direct 
spending) to finance investments to modernize the air traffic 
control system, the bill would authorize the agency to collect 
surcharges, without appropriation action, to repay such 
borrowing. Under the bill, surcharges used to repay borrowing 
would be credited as offsetting receipts (a credit against 
direct spending).
    CBO expects the FAA would begin collecting surcharges in 
fiscal year 2009. Based on information from the FAA about 
anticipated numbers of flights that would generate income from 
the proposed surcharge, CBO estimates the proposed surcharge 
would generate $410 million in 2009, increasing to $490 million 
by 2017. Based on the likely timing and magnitude of federal 
borrowing related to air traffic control modernization, CBO 
estimates the agency would start to borrow funds in 2012. Until 
that time, CBO estimates that surcharges would generate 
discretionary offsetting collections totaling nearly $1.3 
billion over the 2009-2011 period, assuming appropriation of 
amounts authorized for facilities and equipment. Starting in 
2012, we expect surcharges would be used to repay borrowing 
authority and credited as offsetting receipts, as described 
later in this estimate (see ``Direct Spending'').
    Airport Improvement Program Outlays. S. 1300 would provide 
$3.8 billion in contract authority (a mandatory form of budget 
authority) in 2008 and $15.8 billion over the 2008-2011 period 
for the airport improvement program (AlP). Through that 
program, the FAA provides grants to airports for projects to 
enhance capacity and safety. Outlays of AlP contract authority 
are controlled by limitations on obligations set in annual 
appropriation acts and are therefore considered discretionary.
    CBO estimates that enacting S. 1300 would increase contract 
authority over levels assumed in the current budget resolution 
baseline by $1.1 billion over the 2008-2011 period specifically 
covered under S. 1300 and $425 million annually thereafter. 
(See ``Direct Spending'' for a discussion of the budgetary 
treatment of AIP contract authority under the budget resolution 
baseline and for purposes of projecting costs under proposed 
legislation.)
    The legislation would make several changes, such as 
increasing the maximum federal share of certain airport 
projects and expanding eligibility criteria for AIP grants, 
that CBO expects would increase the rate of spending of AIP 
funds. In total, assuming that obligation limitations of AIP 
spending, as set forth in annual appropriation acts, are equal 
to the levels of contract authority projected under S. 1300, 
CBO estimates that implementing this provision would increase 
discretionary spending by $1.1 billion over the 2008-2012 
period, with additional spending occurring in later years. That 
amount includes $200 million in accelerated outlays from 
contract authority assumed in the current baseline and $900 
million in spending from additions to contract authority under 
S. 1300.
    Research, Engineering, and Development. S. 1300 would 
authorize appropriations totaling $140 million-in 2008 and $716 
million over the 2008-2011 period for research and activities 
aimed at improving the safety and capacity of U.S. airspace. 
(In comparison, the Congress provided $130 million for such 
activities in 2007.) CBO estimates fully funding those programs 
under S. 1300 would cost $77 million in 2008 and $695 million 
over the 2008-2012 period, with additional spending occurring 
in later years.
    Other Provisions. CBO estimates that implementing other 
provisions of S. 1300 would require appropriations totaling 
$220 million over the 2008-2012 period. (In comparison, CBO 
estimates the Congress provided nearly $100 million for related 
programs in 2007.) That amount includes:
         $105 million to extend, through 2011, the 
        authorization of appropriations totaling $35 million a 
        year for the Small Community Air Service Development 
        Program (currently authorized at that level through 
        2008);
         $50 million to continue, through 2011, 
        activities of the Joint Planning and Development 
        Office, currently authorized at $50 million a year 
        through 2010, which coordinates multiple agencies' 
        activities related to modernizing the nation's air 
        traffic control system;
         $30 million to increase, by $6 million a year, 
        the amount authorized to be appropriated for the 
        Essential Air Service program (currently permanently 
        authorized at $77 million a year);
         $10 million specifically authorized for the 
        Department of the Interior to develop plans related to 
        air tours of national parks;
         $5 million specifically authorized for applied 
        research and training on the use of advanced materials 
        in certain aircraft; and,
         $20 million estimated to be necessary for 
        various FAA studies, reports, and activities.
    Assuming appropriation of amounts specified and estimated 
to be necessary, CBO estimates fully funding these activities 
would cost $17 million in 2008 and $220 million over the 2008-
2012 period.

                                             TABLE 2.--EFFECTS ON DIRECT SPENDING AND REVENUES UNDER S. 1300
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars--
                                         ---------------------------------------------------------------------------------------------------------------
                                                                                                                                                 2008-
                                            2008     2009     2010     2011     2012     2013     2014     2015     2016     2017   2008-2012     2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING

Air Traffic Control Modernization:
    Estimated Budget Authority..........        0        0        0        0      500      750      750    1,000    1,000    1,000       500       5,000
    Estimated Outlays...................        0        0        0        0      290      560      700      890      960    1,000       290       4,400
Modernization Surcharge:................        0        0        0        0     -440     -450     -460     -470     -480     -490      -440      -2,790
    Estimated Budget Authority..........        0        0        0        0     -440     -450     -460     -470     -480     -490      -440      -2,790
AIP Contract Authority \1\:
    Budget Authority....................      125      225      325      425      425      425      425      425      425      425     1,525       3,650
    Estimated Outlays...................        0        0        0        0        0        0        0        0        0        0         0           0
Increased Spending from Overflight Fees:
    Estimated Budget Authority..........        0       18       18       19       19       20       20       21       21       21        74         177
    Estimated Outlays...................        0       14       18       19       19       20       20       21       21       21        70         173
Retirement Benefits for Pilots:
    Estimated Budget Authority..........        0        0        0        0        0        0        0        0        0        0         0           0
    Estimated Outlays...................       -9      -17      -14       -9       -8       -3        1        1        1        1       -57         -56
Third-Party Financing of Investments in
 Modernization:
    Estimated Budget Authority..........       60        0        0        0        0        0        0        0        0        0        60          60
    Estimated Outlays...................       10       20       20       10        0        0        0        0        0        0        60          60
Aviation War-Risk Insurance:
    Estimated Budget Authority..........      -70     -140     -100      -60      -10       30       60       70       90      100      -380         -30
    Estimated Outlays...................      -70     -140     -100      -60      -10       30       60       70       90      100      -380         -30
    Total Changes:
        Estimated Budget Authority......      115      103      243      384      494      775      795    1,046    1,056    1,056     1,339       6,067
        Estimated Outlays...............      -69     -123      -76      -40     -149      157      321      512      592      632      -457       1,757

                                                                   CHANGES IN REVENUES

Estimated Revenues......................        0       17       15       15       13       13       11       10        8        7        60        109
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: AIP = Airport Improvement Program.
\1\ Budget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of budget authority; however, outlays from
  that contract authority are subject to limitations on obligations specified in appropriation acts and are therefore discretionary.

                            Direct Spending

    CBO estimates enacting S. 1300 would reduce direct spending 
by $457 million over the 2008-2012 period but increase it by 
nearly $1.8 billion over the 2008-2017 period. Those changes, 
presented in Table 2, result primarily from provisions that 
would:
         Provide new budget authority for the FAA to 
        modernize the nation's air traffic control system;
         Establish a surcharge on flight operations;
         Provide additional contract authority for the 
        AIP;
         Increase direct spending of overflight fees;
         Increase the mandatory retirement age for 
        pilots;
         Expand the use of third-party financing of 
        investments in modernization; and
         Extend the FAA's authority to sell certain 
        insurance.
    Modernizing the Air Traffic Control System. S. 1300 would 
authorize the FAA to borrow up to $5 billion over the 2009-2025 
period to finance capital investments related to modernizing 
the nation's air traffic control system. Such borrowing 
authority would constitute new direct spending authority and 
spending would be recorded in the budget as the agency borrows 
funds. To repay borrowed funds, the bill also would establish a 
surcharge on certain flights, as described in the following 
section. Based on information from the FAA and the JPDO about 
the anticipated timing and magnitude of federal spending 
related to air traffic control modernization, CBO estimates 
that enacting this provision would increase direct spending by 
$4.4 billion over the 2012-2017 period, with additional 
significant spending continuing through at least 2025.
    The bill does not specify whether the $5 billion limit 
would apply to cumulative borrowing--essentially capping direct 
spending at $5 billion--or if the agency would be authorized to 
borrow new funds as it repays obligations--effectively 
operating as a revolving line of credit. Although current 
estimates of total costs to modernize the air traffic control 
system are uncertain, CBO expects they will far exceed the 
legislation's $5 billion borrowing limit--perhaps reaching $22 
billion according to recent testimony by the FAA. For this 
estimate, CBO assumes that it would continue to borrow 
throughout the 2009-2025 period, provided that the agency 
continues to repay borrowed funds over that period, so that 
outstanding debt would not exceed $5 billion at any time. CBO 
estimates that borrowing over the 2009-2025 period would total 
between $8 billion and $11 billion, depending on the magnitude 
of surcharges available to repay borrowing.
    Finally, S. 1300 does not specify whether the FAA would 
borrow funds from the Department of the Treasury or by selling 
obligations directly to the public. The Department of the 
Treasury conducts the federal government's conventional 
borrowing by issuing bonds and other types of debt. Treasury 
securities are the ``gold standard'' because they are 
considered virtually free from the risk of default and are 
highly liquid. Other means of borrowing funds, including 
allowing an agency to sell obligations directly to the public, 
can be expected to cost the government more, as investors would 
likely demand a premium over Treasury bonds for purchasing 
specifically issued debt. For this estimate, CBO assumes the 
FAA would borrow through the Treasury to fund investments in 
modernization.
    Offsetting Receipts from the Modernization Surcharge. As 
previously discussed, S. 1300 would establish a new fee--a $25 
surcharge on certain flights--to provide a source of funds for 
activities related to modernizing the nation's air traffic 
control system. In years when the FAA borrows funds for 
investments related to modernization, such surcharges would be 
credited as offsetting receipts (a credit against direct 
spending) and used to repay such borrowing. (In years when 
surcharges are not needed to repay agency borrowing, they would 
be subject to appropriation and credited as discretionary 
offsetting collections; see ``Spending Subject to 
Appropriation.'')
    Based on information from the FAA on the likely timing of 
agency borrowing and the number of flights that would generate 
income from the proposed surcharge, CBO estimates that 
resulting offsetting receipts would total about $2.8 billion 
over the 2012-2017 period (and that surcharges collected before 
2012 would be recorded as offsetting collections).
    Airport Improvement Program Contract Authority. S. 1300 
would provide $3.7 billion in additional contract authority for 
the AIP over the 2008-2017 period. As previously noted, 
additional spending from such contract authority would be 
controlled by obligation limitations specified in annual 
appropriation acts, and thus, outlays would be considered 
discretionary.
    Baseline Treatment of AIP Contract Authority. The Balanced 
Budget and Emergency Deficit Control Act of 1985, which 
established rules that govern the calculation of CBO's 
baseline, expired on September 30, 2006. Nevertheless, CBO 
continues to prepare baselines and estimate costs of proposed 
legislation according to the methodology prescribed in that 
law, including the requirement that certain expiring programs--
such as contract authority for AIP--be assumed to continue for 
budget projection purposes. Consistent with that practice, the 
budget resolution baseline assumes AIP contract authority over 
the 2008-2017 period will remain at the 2007 level of nearly 
$3.7 billion.
    Increases to Contract Authority. Under S. 1300, AIP 
contract authority would total $3.8 billion in 2008 and 
increase gradually to $4.1 billion in 2011. Consistent with 
CBO's methodology for projecting contract authority under 
proposed legislation, we assume that contract authority for AIP 
would continue after 2011 and would remain at $4.1 billion 
annually over the 2012-2017 period. In total, CBO estimates 
contract authority under S. 1300 would exceed levels of 
contract authority assumed in the current budget resolution 
baseline by $1.1 billion over the four-year period specifically 
covered by the bill and $3.7 billion over the 2008-2017 period.
    Adjustments to AIP Contract Authority. Public Law 106-181, 
enacted in 2000, reauthorized FAA programs for fiscal years 
1999 through 2003. That law created a permanent mechanism that 
provides for an increase to AIP contract authority in any year 
that the amount authorized to be appropriated for air 
navigation and facilities exceeds the amount provided for such 
activities in an appropriation act. By authorizing 
appropriations for facilities and equipment over the 2008-2011 
period, S. 1300--in conjunction with that provision of current 
law--would authorize adjustments to AIP contract authority for 
those years as well. Any adjustment authorized under this 
legislation, once triggered by annual appropriation acts, would 
constitute new direct spending authority. All spending for 
AIP--including spending triggered by such adjustments--would 
still be subject to obligation limitations established in 
appropriation acts. Although S. 1300 could result in additional 
AIP contract authority of as much as $11.9 billion over the 
2008-2011 period if no appropriations were provided for air 
navigation facilities and equipment, CBO assumes that 
appropriations will equal or exceed the amounts authorized by 
the bill; thus, we project no additional increases to AIP 
contract authority under S. 1300.
    Increased Spending of Overflight Fees. Under current law, 
DOT has authority to spend, without further appropriation, 
revenues from overflight fees paid by air carriers to reimburse 
FAA for costs to provide navigational support to flights that 
neither take off nor land in the United States. As discussed 
below, S. 1300 would increase revenues from such fees starting 
in 2009. CBO estimates that resulting increases in direct 
spending would total $173 million over the 2009-2017 period. 
Under the bill, such spending would support particular 
activities related to the Essential Air Service program, which 
subsidizes the cost of providing air service to certain rural 
communities.
    Pilots' Mandatory Retirement Age. Section 706 of the bill 
would raise the mandatory retirement age for commercial pilots 
from age 60 to age 65 within 30 days of the bill's enactment. 
That change would allow pilots to continue flying for up to 
five additional years, which in some cases would enable them to 
accrue higher pension benefits or to receive higher guaranteed 
pension insurance payments from the Pension Benefit Guaranty 
Corporation (PBGC). CBO estimates that the change would reduce 
direct spending by $9 million in 2008, $57 million over the 
2008-2012 period, and $56 million over the 2008-2017 period.
    Under current law, FAA regulations require that commercial 
airline pilots retire from service when they reach age 60. 
(This standard has been in place since 1959.) As a result, age 
60 is frequently the age at which pilots begin to receive their 
pension benefits. For pilots participating in pension plans 
that have been terminated by the PBGC, the age-60 requirement 
means that many pilots will receive benefits limited to the 
agency's maximum guaranteed benefits for participants who 
retire at age 60, which is about 35 percent less than the age-
65 guarantee. (Special rules apply to participants who were 
eligible for benefits within three years of a plan's 
termination.) .
    In January 2007, the FAA announced that it was initiating 
the rulemaking process that would allow it to raise the 
mandatory retirement age to age 65, a process which the agency 
indicated would likely take 18 months to 24 months.
    S. 1300 would raise the mandatory retirement age for pilots 
to age 65, effective not later than 30 days after enactment. 
For purposes of this estimate, CBO assumes that this would take 
place around the beginning of fiscal year 2008, effectively 
accelerating the implementation of the higher retirement age by 
about one year relative to current law.
    Based on data provided by the PBGC, CBO anticipates that 
about 600 pilots participating in terminated pension plans 
would turn 60 years old in fiscal year 2008, and would have the 
opportunity to continue flying until age 65 if S. 1300 were 
enacted. CBO expects that those pilots would continue to fly 
for up to five more years, and retire at ages similar to other 
workers under Social Security. (That is, about one-third would 
begin collecting pension benefits at age 62 and about one-half 
at age 65.) The postponed retirements would reduce PBGC 
outlays--net of reimbursements from the pension plans--by $9 
million in 2008, $57 million over the 2008-2012 period, and $56 
million over the 2008-2017 period. However, because the PBGC 
guarantees are intended to be actuarially fair, the net impact 
of the retirement age change would likely be only a small 
increase and result from the fact that the pilots affected 
would probably be significantly healthier than the general 
population of pension recipients.
    Third-Party Financing of Investments in Modernization. CBO 
estimates the pilot program authorized by S. 1300 to allow 
state and local governments, including airports, to use FAA 
contracts to finance investments related to Automatic Dependent 
Surveillance-Broadcast (ADS-B) technology would increase direct 
spending by $10 million in 2008 and $60 million over the 2008-
2017 period.
    ADS-B Technology. Under current law, one of the major air 
traffic control modernization programs underway involves the 
use of ADS-B technology. With ADS-B, ground stations and 
aircraft transponders will send and receive information, via 
satellite, to provide more accurate information on the location 
of aircraft, which will enable air traffic controllers and 
pilots to use airspace more safely and efficiently. Using 
existing authorities, the FAA currently plans to broadly 
implement ADS-B technology for use of U.S. airspace. The agency 
plans to award a contract this summer to allow a vendor to 
install, operate, and maintain ADS-B ground stations, and is 
pursuing a rulemaking to require air carriers to install 
necessary avionics equipment. Under such a contract, which 
could cover up to 18 years, the vendor will finance the 
acquisition, installation, operation, and maintenance of ADS-B 
ground stations nationwide in exchange for annual payments from 
the FAA.
    Budgetary Treatment of ADS-B Contracts. Using long-term 
contracts to involve nonfederal parties in financing the cost 
of capital spending for ADS-B ground stations--particularly to 
acquire and install such equipment--constitutes direct spending 
when the legal obligation of the federal government in such 
contracts is not covered by a full up-front discretionary 
appropriation. Upon entering into such contracts, the 
government becomes obligated to make payments in the future. 
Thus, consistent with government-wide accounting principles, 
the budget should record those commitments as new obligations 
at the time the government enters into such contracts.
    Increased Spending for ADS-B Under S. 1300. This cost 
estimate does not include costs related to the ADS-B contract 
the agency is pursuing under current law; however, it does 
reflect increased direct spending authorized by the bill for 
expanding the use of third-party financing of capital spending 
for ADS-B ground stations. Specifically, S. 1300 would 
establish a pilot program to allow up to 10 state and local 
governments, including airports, to use FAA contracts to 
install, operate, and maintain ADS-B ground stations. Based on 
information from the FAA on the anticipated cost to acquire and 
install such systems, CBO estimates that increased spending 
would total $60 million over the 2008-2011 period.
    Aviation Insurance. Under current law, the FAA offers a 
commercial aviation insurance program that, in exchange for a 
premium payment, insures air carriers and certain manufacturers 
against liabilities arising from losses caused by terrorist 
events. The FAA also offers a nonpremium insurance program to 
air carriers that participate in the Civil Reserve Air Fleet 
(CRAF). The FAA's authority to operate both of those programs 
is scheduled to expire on March 30, 2008. S. 1300 would extend 
that authority through October 1, 2017. CBO estimates that 
extending the CRAF program through that time would have no 
significant budgetary impact; however, extending the FAA's 
authority to offer commercial aviation insurance through fiscal 
year 2017 would reduce net direct spending by $30 million over 
the 2008-2017 period. Over the long run, however, we estimate 
that extending the authority to operate the program would 
result in net costs to the federal government after 2017.
    Initial savings under this provision of S. 1300 result 
because the FAA would collect premiums in full when coverage is 
sold, while payments for expected losses would begin slowly and 
occur over several years. For this estimate, CBO assumes that 
the FAA would continue to offer commercial aviation insurance 
at rates that would not fully offset the government's cost of 
providing that coverage. Based on information from the FAA 
about current insurance rates, CBO estimates that increased 
offsetting receipts from premiums (which are credited against 
direct spending) would total just over $1.8 billion over the 
2008-2017 period. We also estimate that total expected losses 
for claims will total $3.3 billion, resulting in net nominal 
costs over time of $1.5 billion. Of those total claims 
payments, however, we expect that just under $1.8 billion would 
be spent over the 2008-2017 period, resulting in net cash-flow 
savings of $30 million over that period. Remaining cash outlays 
for claims would occur after 2017.
    CBO cannot predict how much insured damage terrorists might 
cause in any specific year. Instead, our estimate of the cost 
of insurance coverage under S. 1300 represents an expected 
value of payments from the program--a weighted average that 
reflects the probabilities of various outcomes, from zero 
damages up to very large damages due to possible future 
terrorist attacks. The expected value can be thought of as the 
amount of an insurance premium that would be necessary to just 
offset the risk of providing this insurance; indeed, our 
estimate of the expected cost for S. 1300 is based on private-
sector premiums for terrorism insurance that have been adjusted 
for differences in costs faced by private insurance firms that 
are not borne by the federal government. While this cost 
estimate reflects CBO's best judgment on the basis of available 
information, costs are a function of inherently unpredictable 
future terrorist attacks. As such, actual costs could fall 
anywhere within an extremely broad range.

Revenues

    CBO and JCT estimate that enacting S. 1300 would increase 
net revenues by $60 million over the 2008-2012 period and $109 
million over the 2008-2017 period. Those changes stem from 
provisions related to overflight fees and passenger facility 
fees.
    Overflight Fees. S. 1300 would amend current law to 
authorize the FAA to increase fees for certain navigational 
services provided for flights that neither take off nor land in 
the United States--commonly known as overflight fees. Such fees 
are typically paid by foreign air carriers and are recorded as 
revenues. S. 1300 would direct the agency to update the amounts 
charged, through an expedited rulemaking, to fully recover its 
costs starting in fiscal year 2009. Based on information from 
the agency, CBO estimates that the agency's costs to provide 
support for overflights currently exceeds revenues from fees by 
about $18 million annually. CBO estimates the resulting 
increase in revenues would total $74 million over the 2009-2012 
period and $177 million over the 2009-2017 period. (As 
discussed earlier, under the bill, those increased revenues 
would result in corresponding increases in direct spending for 
certain activities related to the Essential Air Service 
program.)
    Passenger Facility Fees. S. 1300 would direct the Secretary 
of Transportation to establish a pilot program to allow 
participating authorities to increase passenger facility fees 
under certain circumstances. JCT expects that the proposed 
program would increase passenger facility fees, subsequently 
lead to increased tax-exempt financing for airport construction 
and related projects and, consequently, reduce federal 
revenues. JCT estimates that federal revenue losses would total 
$14 million over the 2008-2012 period and $69 million over the 
2008-2017 period.
    Estimated impact on state, local, and tribal governments; 
S. 1300 contains intergovernmental mandates as defined in UMRA. 
Specifically, the bill would give the FAA the right to (1) 
access criminal justice data maintained by the states, (2) use 
state or local radio, data links, or warning systems that 
provide public safety information, and (3) receive 
communications from state or local police officers. These 
provisions constitute intergovernmental mandates as defined in 
UMRA because state and local governments would be required to 
comply with requests for information from the FAA. Although we 
cannot predict the extent to which the FAA would access state 
or local data systems, or make inquiries of state or police 
officers, CBO estimates that the additional costs to state, 
local, and tribal governments of complying with these mandates 
would be small and would not exceed the threshold established 
in UMRA ($66 million in 2007, adjusted annually for inflation).
    Other provisions of the bill would benefit public 
institutions of higher education by authorizing grants for 
aviation research, and would benefit states by providing grants 
for airport planning, noise abatement, environmental reviews 
and other airport-related projects. Any costs those entities 
might incur would result from complying with conditions of 
federal assistance.
    Estimated impact on the private sector: S. 1300 contains 
several private-sector mandates as defined in UMRA. Those 
mandates include but are not limited to:
           A new surcharge on flights in airspace 
        controlled by the FAA,
           A prohibition on operating certain aircraft 
        not in compliance with low-noise criteria,
           Safety requirements for helicopters used in 
        emergency medical service, and
           Requirements on air carriers related to 
        airline service and cabin crews.
    Based on information from the FAA and industry sources, CBO 
estimates that the aggregate direct cost of complying with 
those mandates would exceed the annual threshold established in 
UMRA for private-sector mandates ($131 million in 2007, 
adjusted annually for inflation) in each of the first five 
years the mandates are in effect.

Flight surcharge

    Section 106 would impose a $25 surcharge per flight on 
commercial airline, general aviation jet, and turboprop flights 
which use airspace controlled by the FAA. According to the FAA, 
the surcharge would apply to about 16.5 million flights. Based 
on those data, the cost for private-sector entities to comply 
with the mandate would be at least $400 million per year and 
would exceed UMRA's annual threshold each year.

Prohibition on aircraft noise levels below stage 3

    The FAA classifies aircraft into three stages based on 
measurements of noise level: stage 1, stage 2, and stage 3 in 
order from loudest to the least noisiest. Section 711 would 
prohibit, with certain exemptions, operation of aircraft 
weighing 75,000 pounds or less in the United States that do not 
comply with stage 3 noise levels. The prohibition would take 
affect five years after the date of enactment. According to 
industry sources, compliance would require engine modifications 
on existing aircraft when possible, or replacement of aircraft 
that cannot be modified to meet the noise requirement. Those 
sources estimate the cost of compliance could range from a low 
of $300 million to more than $1 billion depending on how the 
aircraft are made to comply.

Helicopter emergency medical service safety requirements

    Section 508 would require operators of helicopters for 
emergency medical service to comply with operating procedures 
whenever there is a medical crew on board. It also would 
require all helicopters acquired after the bill's enactment to 
have an operational terrain awareness and warning system that 
meets certain FAA specifications. The bill would require flight 
operators to use a standardized checklist of risk evaluation 
factors and standardized dispatch procedures both to be 
developed by FAA rulemakings. In addition, the bill would 
require flight data and cockpit voice recorders on all 
helicopters used in such service. Due to a lack of information 
on the specific standards to be established by the FAA, CBO 
cannot estimate the incremental costs that would result from 
compliance with those standards.

Air carriers: airline service and cabin crew requirements

    The bill would impose several new requirements on air 
carriers related to airline service. Section 401 would require 
air carriers to develop contingency plans to handle situations 
in which the departure of a flight is substantially delayed 
with passengers onboard. The plan would be required to outline 
how the air carrier would ensure that passengers are provided 
adequate food, potable water, and restroom facilities as well 
as timely and accurate information regarding the status of the 
flight. Section 402 would require each air carrier to publish, 
and update monthly, on its Web site, the on-time performance of 
chronically delayed, cancelled, or diverted flights. In 
addition, air carriers would have to disclose the on-time 
performance for a chronically delayed flight and cancellation 
rates when customers book flights on their Web sites. The bill 
also would require air carriers to post a statement on such 
sites detailing a customer service policy and consumer rights 
related to air carriers under federal and state law. Based on 
information from industry sources, CBO expects that the direct 
cost to comply with the mandates would be small relative to 
UMRA's annual threshold.
    S. 1300 also would impose requirements on air carriers 
related to the English language skills of their cabin crews. 
Section 509 would prohibit an air carrier from using any person 
as a flight attendant on flights taking off or landing in the 
United States unless the person has the ability to read, speak, 
and write English. Based on information from industry sources, 
CBO expects that the direct cost to comply with this mandate 
would be minimal relative to the annual threshold.
    Estimate prepared by: Federal Costs: FAA spending--Megan 
Carroll; Retirement Benefits--Paul Cullinan; Revenues--Andrew 
Langan, Impact on state, local, and tribal governments: 
Elizabeth Cove. Impact on the private sector: Paige Piper/Bach 
and Justin Hall.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

    The reported bill would reauthorize existing FAA 
activities, thus the number of persons covered should be 
consistent with the current levels of individuals impacted 
under existing FAA activities.

                            ECONOMIC IMPACT

    S. 1300 is expected to have a positive impact on the U.S. 
economy. The air transportation system, which is a key 
component of the nation's economy, is experiencing increased 
congestion and delay. Provisions in this legislation aim to 
ensure the air transportation system is modernized in a timely, 
efficient, and effective manner to resolve congestion and 
delay, and meet the growing demand on the aviation system.

                                PRIVACY

    The reported bill is not expected to have any impact on the 
privacy rights of individuals.

                               PAPERWORK

    It is not anticipated that there will be a major increase 
in paperwork burdens resulting from the enactment of S. 1300.

                      Section-by-Section Analysis

Sec. 1. Short title; table of contents

    This section provides that the Act may be cited as the 
``Aviation Investment and Modernization Act of 2007'' and sets 
forth the table of contents for the bill.

Sec. 2. Amendments to title 49, United States Code

    This section stipulates that, except as otherwise expressly 
provided, all amendments in this Act would be made to title 49, 
United States Code.

Sec. 3. Effective date

  This section would require the provisions of this act to take 
effect on the date of enactment, unless expressly provided 
otherwise.

                 TITLE I--AUTHORIZATIONS AND FINANCING

Sec. 101. Operations

  This section would authorize the FAA operations account at a 
level of $8.7 billion for FY 2008; $9.0 billion for FY 2009; 
$9.3 billion for FY 2010; and $9.6 billion for FY 2011.

Sec. 102. Air navigation facilities and equipment

  This section would authorize the FAA's air navigation F&E 
account, which funds the modernization and maintenance of the 
ATC system. The F&E account would be authorized at $2.6 billion 
for FY 2008; $2.9 billion for FY 2009, of which $412 million 
would be derived from the newly-created modernization surcharge 
imposed under section 48115; $3.1 billion for FY 2010, of which 
$423 million would be derived from the modernization surcharge; 
and $3.3 billion for FY 2011, of which $436 million would be 
derived from the modernization surcharge.

Sec. 103. Research and development

  This section would authorize the FAA's R,E,&D account at a 
level of $140 million for FY 2008; $191 million for FY 2009; 
$191 million for FY 2010; and $194 million for FY 2011.

Sec. 104. Airport planning and development and noise compatibility 
        planning and programs

  This section would authorize the FAA's AIP account at a level 
of $3.8 billion for FY 2008; $3.9 billion for FY 2009; $4.0 
billion for FY 2010; and $4.1 billion for FY 2011.

Sec. 105. Other aviation programs

  This section would extend the budgetary treatment for the 
FAA's accounts through 2011.

Sec. 106. Air Traffic Modernization Fund

  This section would establish the Modernization Fund and 
collection procedures. The purpose of the Modernization Fund 
would be to help pay for the costs of modernizing the ATC 
system and implementing NextGen. The Modernization Fund would 
be financed by a $25 per flight surcharge, levied on commercial 
airline and GA jet and turboprop flights in controlled 
airspace. Military aircraft, public aircraft, air ambulances, 
piston engine aircraft, turboprop and turboshaft aircraft 
operating outside of controlled airspace, certain intrastate 
flights, and agricultural flights would be exempt from the 
surcharge. The FAA Administrator also would be authorized to 
exempt training flights from the surcharge. The revenues 
generated by the surcharge would be credited as offsetting 
collections to the FAA's F&E account.
  This section also would authorize the Secretary of 
Transportation to borrow up to $5 billion between 2009 and 2025 
to finance modernization investments in facilities and 
equipment of the air transportation system, with the loan to be 
repaid through revenues derived from the surcharge.

Sec. 107. Funding for administrative expenses for airport programs

  This section would authorize administrative expenses for the 
FAA's airports program at a level of $81 million for FY 2008; 
$85 million for FY 2009; $89 million for FY 2010; and $93 
million for FY 2011.

                     TITLE II--AIRPORT IMPROVEMENTS

Sec. 201. Reform of passenger facility charge authority

  This section would streamline and simplify the administrative 
requirements associated with the PFC, while retaining audit 
controls and FAA oversight of projects and expenditures. This 
section would impose additional requirements on any airport 
authority applying to increase its PFC or to impose a PFC to 
finance an inter-modal ground facility.

Sec. 202. Passenger facility charge pilot program

  This section would require the Secretary to establish and 
conduct a pilot program in which up to six airports may impose 
a PFC without regard to dollar amount limitations if the 
participating airports collect the charge from a passenger at 
the airport, via the Internet, or in any other reasonable 
manner. A participating airport would be prohibited from 
collecting the charge through an air carrier.

Sec. 203. Amendments to grant assurances

  This section would make two improvements to required grant 
assurances (section 47107 of Title 49, United State Code) for 
AIP projects. First, a limited exception to a current 
requirement would permit an airport owner to use AIP 
entitlement funds to move or replace a facility when the need 
to relocate or replace it was beyond the owner's control, such 
as new design standards that render the facility a safety 
hazard. Second, the provision addresses the disposition of 
proceeds from the sale of land that an airport acquired for a 
noise compatibility purpose but which the airport no longer 
needs for that purpose.
  Existing law requires that proceeds from the sale, in an 
amount that is proportional to the Federal government's share 
of the land acquisition cost, be returned to the Trust Fund. 
This section would allow the Secretary to permit the 
government's share of these proceeds to be used at the airport 
for other purposes, giving priority, in descending order, to 
the following: (a) reinvestment in another noise compatibility 
project at the airport; (b) reinvestment in another 
environmentally related project at the airport; (c) 
reinvestment in another otherwise eligible AIP project at the 
airport; (d) transfer to another public airport for a noise 
compatibility project; and (e) payment to the Trust Fund.

Sec. 204. Government share of project costs

  Currently the government share of AIP grants to large and 
medium hub airports is generally 75 percent; for small hubs the 
government share is 90 percent. This section would establish a 
special rule to allow small hub airports that have increased 
operations, and therefore are being reclassified as medium hub 
airports, to retain their eligibility for two years for up to a 
90 percent government share of project costs, in an effort to 
ease such a facility's transition to the new status.

Sec. 205. Amendments to allowable costs

  A new subsection (d) would be added to 47110 of Title 49, 
United State Code, relating to the relocation of airport-owned 
facilities, making such relocation an allowable cost if the 
sponsor must move a facility because of design standards beyond 
the sponsor's control. This is similar to a change made to the 
grant assurances provision in section 203 of the bill.

Sec. 206. Sale of private airport to public sponsor

  This section would amend section 47133 of Title 49, United 
States Code, (restrictions on use of revenues) to facilitate 
the sale of a private airport which in the past has received 
AIP funds for improvement projects to a public entity, such as 
a State or local government. If a private owner wishes to 
dispose of the airport, a sale to a public sponsor usually 
benefits the airport through more stable and reliable 
ownership. Under current law, if an owner of a private airport 
sells to a public entity, the proceeds of the sale must be 
treated as airport revenue with all the restrictions that are 
attached to such a characterization. Removal of such treatment 
would facilitate these sales without undermining revenue 
diversion protections. This amendment would be applicable to 
grant assistance provided to private airports since October 1, 
1996.

Sec. 207. Pilot program for airport takeover of air navigation 
        facilities

  This section would authorize a pilot program under which the 
FAA may transfer terminal area air navigation equipment, such 
as instrument landing systems and approach lighting systems to 
airports. Up to 10 airports would be eligible to participate. 
The FAA would be permitted to transfer the ownership of the 
facilities, and where needed, the FAA's property interest in 
the land on which the equipment is located, at no cost to the 
airport. In turn, the airport would commit to operate and 
maintain all of the covered equipment at the airport in 
accordance with FAA standards, allow for periodic FAA 
inspections, and replace the equipment when needed. The 
provision also includes explicit authority for airports to add 
to their airfield rate base any costs of owning and operating 
the equipment.

Sec. 208. Government share of certain air project costs

  This section would extend a provision included in Vision 100 
that sets the Federal share for certain projects at small 
airports at 95 percent.

Sec. 209. Miscellaneous amendments

  This section would make a number of non-controversial 
amendments to chapter 471 of Title 49, United State Code, to 
update provisions, remove outdated or obsolete language, or 
clarify provisions.
  Subsection (a), Technical changes to the National Plan of 
Integrated Airport Systems. This subsection would make 
technical changes to section 47103 of Title 49, United State 
Code, the National Plan of Integrated Airport Systems (NPIAS), 
in order to remove obsolete language and update the provision 
to conform to what the FAA is currently including in the NPIAS. 
For example, the NPIAS now works with only categories of 
airports rather than individual airports. Consequently, the 
language in section 47103(a) that references ``each airport'' 
would be deleted in favor of a reference to the ``airport 
system.'' Similarly, further amendments to 47103(a) would 
reflect that the NPIAS does not try to forecast trends in other 
transportation sectors but instead forecasts how airports 
connect to other modes of transportation, for example, how an 
airport connects to a transit system. Section 47103(b) would be 
amended to delete two obsolete references: (a) the NPIAS does 
not consider how tall structures reduce safety and capacity, 
which is done separately under FAA Order 7460, which requires 
coordination for any construction of structures over 200 feet 
or within 20,000 feet of an airport; and (b) the NPIAS no 
longer takes into account Short/Takeoff and Landing operations, 
so the requirement is outdated. Finally, in subsection 
47103(d), the language would be clarified to state that the 
NPIAS, not just the status of the plan, must be published every 
two years.
  Subsection (b), Update veteran's preference definition. This 
subsection would allow veterans of the current Afghanistan/Iraq 
conflict to be eligible for veteran's employment preference on 
AIP projects.
  Subsection (c), Annual report. This subsection would modify 
the requirements for the annual AIP program report to conform 
to practice. The annual date of the AIP program report would be 
moved from April 1 to June 1, and some content would be 
changed.
  Subsection (d), Sunset of program. Since the activities 
described in section 47137 have been assumed by the Department 
of Homeland Security (DHS), this provision of the bill would 
sunset this authority at the end of FY 2008.
  Subsection (e), Correction to emission credits provision. 
This subsection would correct an inaccurate cross-reference in 
section 47139 of Title 49, United State Code, enacted by Vision 
100, under which an airport is able to ``bank'' credits when 
the airport does air quality work that is not required but is 
``surplus.''
  Subsection (f), Correction to surplus property authority. 
This amendment would remove restrictive language added by 
Vision 100 that was intended to address concerns over disposal 
of land due to particular military base closures occurring at 
the time of enactment. Removal of the obsolete restriction will 
aid FAA's effort to support the conversion of military airports 
to civilian use.
  Subsection (g), Airport capacity benchmark reports; 
definition of joint use airport. This amendment would provide 
for a reference to updated versions of the FAA's Airport 
Capacity Benchmark reports, not just the original 2001 Report. 
Also, for purposes of subchapter III of chapter 471 (aviation 
development streamlining) of Title 49, United State Code, this 
section would provide a definition of ``joint use airport,'' as 
meaning a DOD airport that has both military and civil aircraft 
operations.
  Subsection (h), Cargo airports. This subsection would change 
the cargo entitlement from 3.5 percent to 4.0 percent.
  Subsection (i), Use of apportioned amounts. This subsection 
would change the apportioned amount for noise compatibility 
programs, noise mitigation projects, and other airport 
developments.
  Subsection (j), Use of apportioned amounts. This subsection 
would make funds available for the project costs of 
establishing a new crosswind runway.
  Subsection (k), Use of previous fiscal year's apportionment. 
This provision would permit the Secretary to apportion to a 
sponsor in a fiscal year an amount equal to the amount 
apportioned to that sponsor in the previous fiscal year, if the 
airport (a) is served by a single carrier and documents a 
significant disruption of air service, (b) is included in the 
EAS program and passenger boarding falls below 9,700 
enplanements, or (c) has more than 10,000 enplanements yet does 
not meet the criteria for a primary airport, in which passenger 
levels have exceeded 10,000 for the purpose of apportionments.
  Subsection (l), Mobile refueler parking. Makes the 
construction of parking pads for mobile refuelers used while 
fueling an aircraft eligible for AIP funding at non-primary 
airports.
  Subsection (m), AIP minimum discretionary funding. 
Establishes an AIP minimum discretionary funding level of 
$520,000,000.
  Subsection (n), AIP apportionment funding. Modifies how 
apportionment funding is calculated for certain airports.
  Subsection (o), AIP apportionment funding. Modifies the 
determination of enplanements for the purposes of calculating 
apportionment funds.

Sec. 210. State block grant program

  This section would codify current practice that State 
participants in the AIP State Block Grant program (SBGP) have 
responsibility and authority to comply with applicable 
environmental requirements for projects at non-commercial 
service airports within the purview of the SBGP. The FAA 
administers the SBGP by authorizing participating States, once 
a year, to receive a block of funds for any eligible non-
primary airport project. Currently, eight States participate in 
the program, Illinois, Michigan, Missouri, North Carolina, 
Pennsylvania, Tennessee, Texas, and Wisconsin. This section 
would also make a minor change to section 47128(a) of Title 49, 
United State Code, by replacing the term ``regulations'' with 
``guidance'' because the FAA has issued guidance in the form of 
the Airport Improvement Program Handbook, 5100.38, to implement 
AIP. This administrative change does not impact the SBGP or the 
Secretary's ability to place requirements on the States under 
section 47128 of Title 49, United States Code.

Sec. 211. Airport funding of special studies or reviews

  This section would broaden authority, under section 47173 of 
Title 49, United States Code, to include voluntary agreements 
with airports that request FAA support in conducting special 
environmental studies that have R&D aspects relevant to ongoing 
environmental reviews. Vision 100 codified authority of the FAA 
to enter into reimbursable agreements with airport sponsors to 
fund additional FAA staff and contract support using airport 
funds or AIP funds received by the airport to help streamline 
environmental reviews for airport capacity projects. This 
section would also include similar studies resulting from 
approved Part 150 program noise mitigation measures or from 
environmental mitigation commitments in an agency record of 
decision or a finding of no significant impact. The provision 
would not include projects where there is no FAA action or 
involvement that would trigger the work.

Sec. 212. Grant eligibility for assessment of flight procedures

  This section would encourage the implementation of 
environmentally-beneficial aircraft flight procedures at 
airports by making the environmental review of airport-proposed 
procedures AIP eligible if they are approved by the FAA under 
14 Code of Federal Regulations (CFR) part 150, Airport Noise 
Compatibility Planning. Currently, the environmental review 
under the National Environmental Policy Act (NEPA) of airport 
development measures approved under part 150 is AIP-eligible, 
but the NEPA review of flight procedures is not. NEPA reviews 
of flight procedures are often resource-poor and are delayed as 
a result. Operational procedures offer the most promise for 
near-term environmental improvements while new technologies are 
developed. The Potomac River approach used at Ronald Reagan 
Washington National Airport is an example of how the use of air 
traffic procedures to mitigate noise has proven highly 
successful. There is a need to enhance funding mechanisms to 
encourage and utilize operational procedures to a greater 
extent. This section would also authorize the FAA to accept 
funds, including AIP grant funds and PFC revenue, from an 
airport sponsor to hire staff or obtain services in order to 
provide timely environmental reviews for such flight 
procedures. This is similar to authority the FAA has under 
section 47173 of Title 49, United States Code, for 
environmental activities related to AIP projects.

Sec. 213. Safety-critical airports

  This section would make current or former military airports 
eligible to be considered for a grant under 47118 of Title 49, 
United States Code, if that airport is found to be critical to 
the safety of trans-oceanic air traffic.

Sec. 214. Expanded passenger facility charge eligibility for noise 
        compatibility projects

  Subject to certain restrictions, this section would expand 
current PFC eligibility criteria to include noise mitigation 
for a building or the replacement of a relocatable building 
with a permanent building, to mitigate noise impacts in 
situations where the building affected is used for educational 
purposes.

Sec. 215. Environmental mitigation demonstration pilot program

  This section would add an environmental research pilot 
program to fund demonstration projects at airports to test the 
practical application of experimental technologies.

Sec. 216. Allowable project costs for airport development program

  This section would allow AIP eligible projects begun before 
the actual award of AIP funding due to severe weather 
considerations to remain eligible for AIP funds.

                 TITLE III--FAA ORGANIZATION AND REFORM

Sec. 301. Air Traffic Control Modernization Oversight Board

  This section would establish the Modernization Board to 
provide specific oversight of FAA's modernization activities. 
The responsibilities of the Modernization Board would include 
providing advice on the FAA's modernization program and non-
safety portions of FAA's strategic plan; approving FAA's 
capital expenditures for modernization in excess of $100 
million and the agency's annual F&E budget request; and 
approving the Administrator's selections for the Chief 
Operating Officer of the ATO and the head of the JPDO. The 
Modernization Board would be composed of seven members: the FAA 
Administrator, a representative from the DOD, one member 
representing the public interest, one member who would be the 
CEO of an airport, one member who would be the CEO of a 
passenger or cargo airline, one representative from an FAA 
labor union, and one representative from the GA community. This 
new Modernization Board would replace the current management 
advisory council and the air traffic services committee.

Sec. 302. ADS-B support pilot program

  This pilot program would permit States, or any consortium of 
two or more State or local governments, including airport 
sponsors, to purchase, operate, and maintain ADS-B ground 
equipment. ADS-B is one of the FAA's key modernization 
technologies. It improves the situational awareness of pilots 
by equipping aircraft with a data uplink/downlink and cockpit 
display that provides information about other aircraft in their 
vicinity. Under the pilot program, acquisition of ground-based 
equipment will be eligible for AIP grants, even if a ground 
station is not airport-specific. Projects would be funded out 
of State apportionment funds at a 90 percent Federal share. 
Although funded out of State apportionments, the ADS-B ground 
station could benefit any category of public use airport. To 
approve a project for funding, FAA would need to find that the 
project provides a benefit to the NAS. Projects funded under 
this program would supplement Federal ADS-B ground station 
deployment. A greater number of States, regions, and airports 
would benefit because the program would provide ADS-B coverage 
to areas that would not be reached under the FAA's direct 
procurement, as it is currently planned. The provision includes 
language to provide flexibility in contracting to the FAA and 
project sponsors to permit the most efficient acquisition of 
ground stations funded under the pilot program.

Sec. 303. Facilitation of next generation air traffic services

  This section would set forth factors that the FAA would 
consider in determining whether to accept the provision of air 
traffic services by non-government providers. Factors would 
include the effect on the safety and efficiency of the NAS, 
competition, the role of GA, and the widespread use of such 
services at affordable rates.

Sec. 304. Clarification of authority to enter into reimbursable 
        agreements

  This section would make a minor change to section 106(m) of 
Title 49, United States Code, to clarify the FAA's authority 
under that section, to be consistent with the FAA's broad 
contract authority under section 106(l)(6), to enter into 
reimbursable interagency agreements. This clarification is 
necessary to correct any confusion resulting from language 
added to 106(m) by Congress after the terrorist attacks of 
September 11, 2001. Congress added the last sentence in 106(m) 
to expressly allow FAA to provide services, equipment, etc. to 
other agencies ``without reimbursement.'' This was intended, 
for example, to allow FAA to provide services and personnel to 
the newly created Transportation Security Administration, 
without reimbursement. Such language was never intended to 
alter FAA's pre-existing authority to enter into interagency 
agreements that required reimbursement. This section clarifies 
the last sentence of 106(m) by making it clear that the FAA may 
perform work for other agencies ``with or without'' 
reimbursement.

Sec. 305. Clarification to acquisition reform authority

  This section would repeal a provision of law that conflicts 
with the FAA's procurement reform authority that Congress 
granted the FAA in 1996. The FAA now has broad flexibility to 
use procedures other than competitive procedures in various 
compelling circumstances, for example, in response to an 
emergency such as a hurricane or other natural or man-made 
disaster when there could be multiple sources of supply but 
there is insufficient time to run a competition. The provision 
would not change that flexibility. However, it would repeal 
conflicting language that predated the 1996 reforms. Paragraph 
40110(c)(4) of Title 49, United States Code, is an obsolete 
grant of authority to FAA, which, prior to procurement reform, 
was needed. Paragraph (c)(4) was an exception to a law that now 
no longer applies to the FAA. Having this exception remain in 
law could lead to confusion that FAA's authority is restricted. 
Such a restriction would mean that FAA could not limit 
competition in response to an emergency, as noted above, or 
could not set aside procurements for small businesses, disabled 
veteran-owned businesses, or small businesses owned and 
controlled by socially and economically disadvantaged 
minorities. Without this change FAA could not restrict 
competition even if an international agreement requires the 
agency to do so or use any of the other exceptions provided for 
in the Competition in Contracting Act, as other Federal 
agencies may do. Accordingly, this section would repeal 
40110(c)(4).

Sec. 306. Assistance to other aviation authorities

  This section would clarify the FAA's current authority to 
provide air traffic services abroad, whether or not the foreign 
entity is private or governmental, and that the FAA may 
participate in any competition to provide such services. It 
would also clarify that the Administrator may allow foreign 
authorities to pay in arrears, rather than in advance, and that 
any payment for such assistance may be credited to the current 
applicable appropriations account.

Sec. 307. Presidential rank award program

  In 1996, the FAA reformed its personnel system under special 
authority provided by Congress, now codified under section 
40122 of Title 49, United States Code, which exempted the FAA 
from many requirements of the Federal government's personnel 
system under Title 5, United States Code. As a ``non-Title 5'' 
agency, the FAA currently cannot participate in the 
Presidential Rank Award Program. This section would lift that 
restriction, and through an amendment to section 40122 that 
takes into account the minor differences in nomenclature 
between the FAA's new personnel system and the Title 5 system, 
allow the FAA's executives and senior professionals to 
participate in the Program.

Sec. 308. Next generation facilities needs assessment

    This section would create a specific process for the FAA to 
complete a comprehensive study and analysis of how the agency 
might realign its services and facilities to help reduce 
capital, operating, maintenance, and administrative costs on an 
agency-wide basis with no adverse effect on safety. The FAA 
would be required to develop criteria for realignment within 
nine months of passage and make any recommendations for action 
within nine months of the publication of the criteria. The 
Modernization Board would be required to study the FAA's 
recommendations, provide opportunity for public comment, and 
report the Modernization Board's recommendations to Congress. 
The Administrator would be prohibited from consolidating 
additional TRACON facilities into the Southern California 
TRACON, Memphis TRACON, and Houston TRACON until the 
Modernization Board's recommendations are completed.

Sec. 309. Next Generation Air Transportation System Planning Office

    This section would require the Administrator of the FAA, 
the Secretary of Defense, the Administrator of the National 
Aeronautics and Space Administration, the Secretary of 
Commerce, the Secretary of Homeland Security, and the head of 
any other Department or Federal agency from which the Secretary 
of Transportation requests assistance to designate an office 
responsible for carrying out NextGen responsibilities and 
coordinating with other agencies involved in the NextGen 
project.
    This section also would require, within six months of 
enactment, the development of a memorandum of understanding 
between the offices participating in the NextGen project that 
describes the responsibilities of each Department or agency and 
the budgetary and staff resources committed to the project.

Sec. 310. Definition of air navigation facility

    The statutory definition of an ``air navigation facility'' 
is used in a number of contexts, but one of the most important 
is determining the eligibility for funding. This section would 
update and broaden the definition of an air navigation facility 
so that it would be clear that its scope includes the many 
capital expenses directly related to the acquisition or 
improvement of such facilities for the current or future NAS.

Sec. 311. Improved management of property inventory

    This section would amend section 40110(a) of Title 49, 
United States Code, to make it clear that FAA's current 
authority to purchase and sell property includes the authority 
to retain funds associated with disposal of property. 
Currently, proceeds from property disposal are often not 
available to the FAA, and as a result, some properties 
unnecessarily remain in the FAA's active inventory for long 
periods of time, due to costs associated with disposal, such as 
demolition, environmental audits, and asbestos abatement costs.

Sec. 312. Educational requirements

    This section would require the FAA to provide financial 
support to the DOD for the education of the dependent children 
of FAA employees in Puerto Rico and Guam.

Sec. 313. FAA personnel management system

    This section would reform the process through which FAA 
resolves labor disputes with employee unions arising in the 
collective bargaining process. If the FAA Administrator or an 
employees' union determines an impasse has been reached during 
the collective bargaining process they are first required to 
use the mediation services of the FMCS. Through this mediation 
process the FAA Administrator and the employees' union may, by 
mutual agreement, adopt procedures for the resolution of 
disputes or impasses arising during the collective bargaining 
process.
    If the services of the FMCS do not lead to an agreement, 
the FAA Administrator and the employees' union would be 
required to submit their unresolved issues to the FSIP. FSIP 
would assert jurisdiction and order binding arbitration by a 
private arbitration board consisting of three members. To 
choose the three members of the board, the Executive Director 
of FSIP would first request from the Director of FMCS not less 
than 15 arbitrators with Federal government experience. This 
list would be provided to the FAA Administrator and the 
employees' union, each of which must choose one arbitrator 
within 10 days of receiving the list. The two arbitrators 
chosen would then select a third arbitrator from the original 
list. If the two arbitrators are unable to agree on a third 
arbitrator, the FAA and the employees' union shall select the 
third arbitrator by alternately striking the names from the 
list of remaining arbitrators until one name remains.
    If the FAA Administrator and the employees' union do not 
agree on the framing of the issues to be submitted for 
arbitration, the arbitration board shall frame the issues. The 
arbitration board shall take into consideration the effect of 
its arbitration decisions on the FAA's ability to attract and 
retain a qualified workforce and on the agency's budget. The 
arbitration board shall render its decision within 90 days of 
appointment. Decisions of the arbitration board shall be 
conclusive and binding upon the FAA and the employees' union. 
Enforcement of the arbitration decisions would be in the 
Jurisdiction of the U.S. District Court for the District of 
Columbia.

Sec. 314. Rulemaking and report on ADS-B implementation

    This section would require FAA to issue a report and 
rulemaking on the adoption of ADS-B, a key NextGen technology.

TITLE IV--AIRLINE SERVICE IMPROVEMENTS AND SMALL COMMUNITY AIR SERVICE 
                              IMPROVEMENTS

Sec. 401. Airline contingency service requirements

    This section would require an air carrier to develop a 
contingency plan to handle situations in which the departure of 
a flight is substantially delayed while passengers are confined 
to an aircraft. The plan must outline how the airline will 
ensure the passengers are provided (a) adequate food, potable 
water, and restroom facilities and (b) timely and accurate 
information regarding the status of the flight. This plan must 
be filed with the DOT, which will make the information publicly 
available. In the absence of such a plan, the air carrier must 
provide the passengers with the option to deplane after three 
hours have elapsed, except if the pilot determines the flight 
will leave within 30 minutes after the three-hour delay or if 
there is a safety or security concern with doing so.

Sec. 402. Publication of customer service data and flight delay history

    This section would require an air carrier to publish on 
their website, and update monthly, a list of chronically 
delayed flights operated by the air carrier. This section also 
would require the air carrier to disclose the on-time 
performance for a chronically delayed flight and cancellation 
rate for the flight when a customer books a flight on the 
carrier's website, prior to actual purchase of a ticket.

Sec. 403. EAS connectivity program

    This section would establish a program under which the 
Secretary of Transportation would require, in up to 10 
communities, air carriers providing small community air service 
and major air carriers serving large hub airports to 
participate in code-share arrangements consistent with normal 
industry practice whenever and wherever the Secretary 
determines that such multiple code-sharing arrangements would 
improve air transportation services.

Sec. 404. Extension of final order establishing mileage adjustment 
        eligibility

    This section would extend a provision in Vision 100 that 
specifies that the most commonly used route between an eligible 
place and the nearest medium hub airport or large hub airport 
is to be used to measure the highway mileage considered in 
reviewing any action to eliminate compensation for EAS to such 
place or to terminate the place's compensation eligibility for 
such service. The section also requires the Secretary, within 
60 days after receiving a review request, to (a) determine 
whether the eligible place would have been subject to such 
elimination or termination under specified law based on such a 
determination of highway mileage, and (b) issue a final order 
regarding eligibility for EAS compensation. It would further 
terminate any such final order on September 30, 2011.

Sec. 405. EAS contract guidelines

    This section would allow the Secretary of Transportation to 
incorporate financial incentives in EAS contracts based on 
performance goals and to execute long-term EAS contracts when 
in the public interest to do so. These are modifications to the 
guidelines used to determine the reasonable amount of 
compensation required to ensure continued air service for an 
EAS airport.

Sec. 406. Conversion of former EAS airports

    This section would require the Secretary of Transportation 
to establish a program to provide GA conversion funding for 
airports serving eligible places that the Secretary has 
determined no longer qualify as eligible places for EAS.

Sec. 407. Essential Air Service Reform

    This section would require the FAA to continue to make 
funds available under section 45303 of Title 49, United States 
Code, to support the EAS program. A total of at least $133 
million would be authorized to carry out the program, an 
increase of at least $6 million above the previous authorized 
level.

Sec. 408. Clarification of air carrier fee disputes

    This provision would amend current law to clarify that 
section 47129 of Title 49, United States Code, applies to both 
air carriers and foreign air carriers. This section provides an 
expedited administrative forum for determining whether 
significant carrier fees levied by airports are reasonable.

Sec. 409. Small community air service

    This section would give priority to multiple communities 
who cooperate to submit a region or multi-State application for 
funding under the SCASDP.

Sec. 410. Contract Tower Program

    This section would authorize spending for the ATC contract 
tower program at a level of $8.5 million for FY 2008; $9 
million for FY 2009; $9.5 million for FY 2010; and $10 million 
for FY 2011. The section also would adjust the timing of 
conducting benefit/cost criteria for such towers, increase the 
maximum Federal participation in new tower construction, and 
establish uniform standards for contract tower safety audits.

Sec. 411. Airfares for members of the Armed Forces

    In recognition of the contributions members of the Armed 
Forces and their families make to the Nation, Congress would 
recommend, in this section, that air carriers offer all members 
of the Armed Forces on active duty (a) reduced fares that are 
comparable to the lowest airfare for ticketed flights and (b) 
flexible terms to purchase, modify, or cancel tickets without 
time restrictions, fees, and penalties.

Sec. 412. Expansion of DOT airline consumer complaint investigations

    This section would expand airline customer complaint 
investigations by the DOT.

Sec. 413. EAS Marketing

    This section would improve the EAS program by requiring 
airlines applying to provide EAS service to submit a marketing 
plan with their EAS application.

Sec. 413. Extraperimetal and intraperimetal slots at Ronald Reagan 
        Washington National Airport

    This section would provide an additional 12 slots at 
Washington National Airport for flights beyond the 1,250 mile 
Perimeter Rule limit, and an additional eight slots at the 
airport for flights within the Perimeter Rule limit.

                        TITLE V--AVIATION SAFETY

Sec. 501. Runway incursion reduction

    This section would require the FAA to issue a plan to 
reduce runway incursions in the NAS not later than December 31, 
2008, with a requirement for that plan to be integrated into 
the FAA's OEP.

Sec. 502. Aircraft fuel tank safety improvement

    This section would require the FAA to finalize a rule 
regarding the reduction of fuel tank flammability for transport 
aircraft by December 31, 2007.

Sec. 503. Judicial review of denial of airman certificates

    This section would provide the FAA with the necessary 
authority to seek judicial review of NTSB decisions involving 
airman certificate denials. Since the early 1990's, the FAA has 
had authority to seek judicial review of NTSB decisions that 
are issued under sections 44709 and 46301(d)(5) of Title 49, 
United States Code, which involve orders of suspension and 
revocation, and civil penalties against airmen. FAA has filed 
petitions for review of only three NTSB cases. As with the 
current judicial review authority, the FAA does not anticipate 
appealing many decisions under this new provision. This section 
would permit the opportunity for review if the agency thought 
it was in the interest of their safety enforcement program.

Sec. 504. Release of data relating to abandoned type certificates and 
        supplemental type certificates

    This section would clarify that FAA may release data 
related to abandoned aircraft type certificates and 
supplemental aircraft type certificates, without the consent of 
the owner of record, if the FAA first determines that (a) there 
has been no proprietary interest exercised over the data for 
three years, (b) the type certificate owner has not been 
located, and (c) it would enhance safety if the data were 
released to aircraft operators in order to safely maintain and 
operate their vintage aircraft. The provision is necessary to 
address routine requests the agency receives from individuals 
and vintage airplane club members for aircraft certification 
data relating to older aircraft in order to maintain the 
airworthiness of their aircraft. In some instances, the owner 
of record of the type certificates or supplemental type 
certificates cannot be found.

Sec. 505. Design organization certificates

    This section would extend by one year the timeline for FAA 
to begin to issue design organization certificates. It also 
would ensure that the statute permits all the privileges 
originally envisioned by the industry and the FAA under the 
scope of a certified design organization provision when the law 
was originally passed, including production.

Sec. 506. FAA access to criminal history records or database systems

    This section would provide statutory authority for the FAA 
to continue to access the National Crime Information Center and 
related State criminal history databases so that the FAA may 
continue to perform its critical safety and security functions. 
Specifically, certain designated FAA staff would have 
permission to access Federal, State, and local law enforcement 
databases, use their radio, data link, or warning systems, and 
receive government communications, at least to the same extent 
and in the same manner as State and local police officers in a 
State. The FAA has acknowledged that criminal investigations 
should only be carried out by agents with law-enforcement 
authority and does not intend to use this access to conduct 
criminal investigations.

Sec. 507. Flight crew fatigue

    This section would require a National Academy of Sciences 
study of pilot fatigue and would initiate a process to carry 
out the recommendations of the Civil Aerospace Medical 
Institute study on flight attendant fatigue.

Sec. 508. Increasing safety for helicopter emergency medical service 
        operators

    This section would require all helicopter emergency medical 
service operators to comply with the safety regulations in part 
135 of title 14, CFR, whenever there is a medical crew on 
board, without regard to whether there are patients on board 
the helicopter. This section also would require the FAA to 
initiate a rulemaking to require these operators to use a 
standardized checklist of risk evaluation factors to determine 
whether a mission should be accepted. This section would 
require another FAA rulemaking to create a standardized flight 
dispatch procedure for these operators and require any 
helicopter used for these operations to have on-board 
operational terrain awareness and warning system if the 
helicopter is ordered, purchased, or otherwise obtained after 
the date of enactment. An additional rulemaking would be 
required, after a feasibility study, to require flight data and 
cockpit voice recorders on board these helicopters.

Sec. 509. Cabin crew communication requirements

    This section would prevent an air carrier from using any 
person as a flight attendant unless that person has the ability 
to read, speak, and write English. This section does not apply 
to service as a flight attendant on a flight operated solely 
between points outside the United States.

Sec. 510. Clarification of memorandum of understanding with OSHA

    This would require the FAA to establish a plan and a 
coordinating body to examine and make recommendations to apply 
appropriate OSHA Administration requirements to the aircraft 
cabin.

Sec. 511. Acceleration of development and implementation of required 
        navigation performance approach procedures

    This provision would require the FAA to set a target of 
achieving a minimum of 200 required navigational performance 
procedures per year through 2012.

                      TITLE VI--AVIATION RESEARCH

Sec. 601. Airport Cooperative Research Program

    This section would provide a permanent authorization for 
the ACRP, which was originally established as a pilot research 
program under Vision 100. Since Vision 100, environmental R&D 
has assumed greater urgency given the need to reduce the growth 
of significant environmental impacts at airports as aviation 
activity grows. This section would provide for the ACRP to 
enhance R&D support specifically related to airport needs. This 
section would also increase the ACRP authorization by 
$5,000,000.

Sec. 602. Reduction of noise, emissions, and energy consumption from 
        civilian aircraft

    This section would require the FAA Administrator to 
establish a research program related to reducing civilian 
aircraft source noise, emissions, and energy consumption 
through grants or other measures. The section would also set 
performance objectives the program must accomplish.

Sec. 603. Production of clean coal fuel technology for civilian 
        aircraft

    This section would require the Secretary of Transportation 
to establish research Centers of Excellence to study the 
development of jet fuel from clean coal technologies through 
grants or other measures, with a requirement to include 
educational and research institutions in the initiative.

Sec. 604. Advisory committee on future of aeronautics

    This section would establish the ``Advisory Committee on 
the Future of Aeronautics,'' to examine the best governmental 
and organizational structures for civil aeronautics R&D.

Sec. 605. Research program to improve airfield pavements

    This provision would extend the authorization of an 
existing pavement research program.

Sec. 606. Wake turbulence, volcanic ash, and weather research

    This section would require the FAA to conduct safety 
research on wake vortexes, volcanic ash, and weather.

Sec. 607. Incorporation of unmanned aerial systems into FAA plans and 
        policies

    This section would enable all classes of unmanned aerial 
systems to be integrated safely into the NAS for civil use and 
streamline the procedures for unmanned aerial systems operators 
to obtain the necessary FAA permits to file and fly.

Sec. 608. Reauthorization of center of excellence in applied research 
        and training in the use of advanced materials in transport 
        aircraft

    This section would reauthorize a center of excellence in 
applied research and training in the use of advanced materials 
in transport aircraft.

                        TITLE VII--MISCELLANEOUS

Sec. 701. General authority

    This section would extend the authority of the Secretary of 
Transportation to provide war risk insurance and reinsurance 
until October 1, 2017.

Sec. 702. Human intervention management study

    This section would require the FAA Administrator to develop 
a Human Intervention Management Study program for cabin crews 
employed by commercial air carriers in the United States.

Sec. 703. Airport program modifications

    This section would require the FAA Administrator to 
establish a formal, structured certification training program 
for the airport concessions disadvantaged business enterprise 
program. The section also would allow the FAA Administrator to 
appoint three additional staff to implement the program.

Sec. 704. Miscellaneous program extensions

    This section would extend the current AIP eligibility for 
the Metropolitan Washington Airports Authority, which oversees 
both Ronald Reagan Washington National Airport and Washington 
Dulles International Airport, through FY 2011. It is currently 
authorized through FY 2008.
    This section also would extend AIP eligibility for the 
Marshall Islands, the Federated States of Micronesia, Palau, 
and Midway Island Airport.

Sec. 705. Extension of competitive access reports

    This provision would make permanent the requirement for air 
carriers to file competitive access reports by eliminating the 
current sunset provision. Vision 100 requires large or medium 
hub airports to file semi-annual competition disclosure reports 
with the Secretary of Transportation (competitive access 
reports) before receiving approval of an AIP grant, if the 
airport was unable to accommodate an airline's request for 
facility access. The report must explain the reason for the 
lack of accommodation and provide a time frame for 
accommodation. The current competitive access report 
requirement terminates on October 1, 2008.
    Although there have been no competitive access reports 
filed to date, there are several possible reasons: (a) the 
filing requirement itself may have deterred airports from 
denying access; (b) entry-friendly practices may have 
facilitated access; or (c) airports may have excess capacity 
and have been able to accommodate airline requests. Maintaining 
the report requirement by repealing the sunset provision could 
help to ensure that airlines seeking to expand will have 
facility access. Moreover, the traveling public is likely to 
benefit by assurances that airport facilities will be made 
available to airline competitors, thereby offering more service 
at potentially lower fares.

Sec. 706. Modification of FAA's age 60 standard

    This section would sunset the existing Age-60 rule, that 
forces the retirement of commercial airline pilots upon 
achieving the age of 60, within 30 days after enactment of the 
bill. Upon sunset of the Age-60 rule, commercial carriers' 
pilots-in-command would be permitted to fly up to their 65th 
birthday, if a co-pilot is 60 years old or below. Pilots that 
have achieved the age of 60 prior to the effective date of the 
change would not be eligible to make a claim for seniority with 
a former air carrier of employment. This section would also 
require a GAO report on the impact of this modification on 
safety, within two years of its effective date.

Sec. 707. Update on overflights

    This section would direct the FAA to ensure that existing 
overflight fees are reasonably related to agency costs of 
providing air traffic services for overflights and would 
require that the FAA update the fees to current cost levels and 
begin collection of the appropriate amount after considering 
recommendations made by the Aviation Rulemaking Committee for 
Overflight Fees. The section would further permit the FAA to 
modify the fee periodically based on the cost of providing such 
service.

Sec. 708. Technical corrections

    This section would provide technical corrections to ensure 
that the Merit Systems Protection Board has both the 
jurisdiction to investigate claims made against the FAA and the 
same enforcement authority in dealing with the FAA that it does 
for all other Federal agencies.

Sec. 709. FAA technical training and staffing

    This section would instruct the GAO to conduct a study of 
the training of FAA systems specialists, including a 
recommendation for a future approach to training these 
employees. This section also would require the FAA to develop a 
staffing model for aviation safety inspectors within 18 months 
of enactment.

Sec. 710. Commercial air tour operators in national parks

    This section would amend language in PL 106-181, Title 
VIII--National Parks Air Tour Management Act, to incorporate 
GAO recommendations.

Sec. 711. Phaseout of stage 1 and 2 aircraft

    This section would phase in a prohibition on the operation 
of aircraft not in compliance with Stage 3 noise levels over a 
five year period.

Sec. 712. Weight restrictions at Teterboro airport

    This section would prohibit the FAA from eliminating weight 
restrictions currently in force at Teterboro airport.

Sec. 713. Fair and equitable resolution of labor integration issues

    This section would create protections for workers at 
airlines that merge.

Sec. 714. Pilot program for redevelopment of airport properties

    This section would establish a pilot program for airport 
property redevelopment that would help expedite the development 
of land acquired by airports to mitigate noise issues.

                      Rollcall Votes in Committee

    Senators Nelson and Sununu offered an amendment to strike 
the provision relating to the modernization surcharge. On a 
rollcall vote of 11 yeas and 12 nays as follows, the amendment 
was defeated:
        YEAS--11                      NAYS--12
Mr. Dorgan\1\                       Mr. Inouye
Mr. Nelson                          Mr. Rockefeller
Mr. Pryor                           Mr. Kerry
Mr. Carper                          Mrs. Boxer\1\
Mrs. Hutchison                      Ms. Cantwell
Ms. Snowe                           Mr. Lautenberg
Mr. Smith                           Mrs. McCaskill
Mr. Ensign                          Ms. Klobuchar
Mr. Sununu                          Mr. Stevens
Mr. DeMint                          Mr. McCain\1\
Mr. Vitter\1\                       Mr. Lott
                                    Mr. Thune

    \1\ By proxy.

    Senators Smith and Cantwell offered an amendment to 
increase the number of slots at Reagan-National Airport. On a 
rollcall vote of 12 yeas and 11 nays as follows, the amendment 
was adopted:
        YEAS--12                      NAYS--11
Mr. Rockefeller                     Mr. Kerry\1\
Mrs. Boxer\1\                       Mr. Dorgan\1\
Ms. Cantwell                        Mr. Nelson
Mr. Carper                          Mr. Lautenberg
Mrs. McCaskill                      Mr. Pryor
Mr. Stevens                         Ms. Klobuchar
Mr. Lott                            Mr. McCain\1\
Mr. Smith                           Mrs. Hutchison
Mr. Ensign                          Ms. Snowe
Mr. DeMint                          Mr. Sununu
Mr. Vitter\1\                       Mr. Thune
Mr. Inouye

    \1\ By proxy.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                        TITLE 49. TRANSPORTATION

                SUBTITLE I. DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec. 106. Federal Aviation Administration

  (a) The Federal Aviation Administration is an administration 
in the Department of Transportation.
  (b) The head of the Administration is the Administrator. The 
Administration has a Deputy Administrator. They are appointed 
by the President, by and with the advice and consent of the 
Senate. When making an appointment, the President shall 
consider the fitness of the individual to carry out efficiently 
the duties and powers of the office. Except as provided in 
subsection (f) or in other provisions of law, the Administrator 
reports directly to the Secretary of Transportation. The term 
of office for any individual appointed as Administrator after 
August 23, 1994, shall be 5 years.
  (c) The Administrator must--
          (1) be a citizen of the United States;
          (2) be a civilian; and
          (3) have experience in a field directly related to 
        aviation.
  (d) (1) The Deputy Administrator must be a citizen of the 
United States and have experience in a field directly related 
to aviation. An officer on active duty in an armed force may be 
appointed as Deputy Administrator. However, if the 
Administrator is a former regular officer of an armed force, 
the Deputy Administrator may not be an officer on active duty 
in an armed force, a retired regular officer of an armed force, 
or a former regular officer of an armed force.
  (2) The annual rate of basic pay of the Deputy Administrator 
shall be set by the Secretary but shall not exceed the annual 
rate of basic pay payable to the Administrator of the Federal 
Aviation Administration.
  (3) An officer on active duty or a retired officer serving as 
Deputy Administrator is entitled to hold a rank and grade not 
lower than that held when appointed as Deputy Administrator. 
The Deputy Administrator may elect to receive (A) the pay 
provided by law for the Deputy Administrator, or (B) the pay 
and allowances or the retired pay of the military grade held. 
If the Deputy Administrator elects to receive the military pay 
and allowances or retired pay, the Administration shall 
reimburse the appropriate military department from funds 
available for the expenses of the Administration.
  (4) The appointment and service of a member of the armed 
forces as a Deputy Administrator does not affect the status, 
office, rank, or grade held by that member, or a right or 
benefit arising from the status, office, rank, or grade. The 
Secretary of a military department does not control the member 
when the member is carrying out duties and powers of the Deputy 
Administrator.
  (e) The Administrator and the Deputy Administrator may not 
have a pecuniary interest in, or own stock in or bonds of, an 
aeronautical enterprise, or engage in another business, 
vocation, or employment.
  (f) Authority of the Secretary and the Administrator.--
          (1) Authority of the Secretary.--Except as provided 
        in paragraph (2), the Secretary of Transportation shall 
        carry out the duties and powers, and controls the 
        personnel and activities, of the Administration. 
        Neither the Secretary nor the Administrator may submit 
        decisions for the approval of, or be bound by the 
        decisions or recommendations of, a committee, board, or 
        organization established by executive order.
          (2) Authority of the administrator.--The 
        Administrator--
                  (A) is the final authority for carrying out 
                all functions, powers, and duties of the 
                Administration relating to--
                          (i) the appointment and employment of 
                        all officers and employees of the 
                        Administration (other than Presidential 
                        and political appointees);
                          (ii) the acquisition and maintenance 
                        of property, services, and equipment of 
                        the Administration;
                          (iii) except as otherwise provided in 
                        paragraph (3), the promulgation of 
                        regulations, rules, orders, circulars, 
                        bulletins, and other official 
                        publications of the Administration; and
                          (iv) any obligation imposed on the 
                        Administrator, or power conferred on 
                        the Administrator, by the Air Traffic 
                        Management System Performance 
                        Improvement Act of 1996 (or any 
                        amendment made by that Act);
                  (B) shall offer advice and counsel to the 
                President with respect to the appointment and 
                qualifications of any officer or employee of 
                the Administration to be appointed by the 
                President or as a political appointee;
                  (C) may delegate, and authorize successive 
                redelegations of, to an officer or employee of 
                the Administration any function, power, or duty 
                conferred upon the Administrator, unless such 
                delegation is prohibited by law; and
                  (D) except as otherwise provided for in this 
                title, and notwithstanding any other provision 
                of law, shall not be required to coordinate, 
                submit for approval or concurrence, or seek the 
                advice or views of the Secretary or any other 
                officer or employee of the Department of 
                Transportation on any matter with respect to 
                which the Administrator is the final authority.
          (3) Regulations.--
                  (A) In general.--In the performance of the 
                functions of the Administrator and the 
                Administration, the Administrator is authorized 
                to issue, rescind, and revise such regulations 
                as are necessary to carry out those functions. 
                The issuance of such regulations shall be 
                governed by the provisions of chapter 5 of 
                title 5. The Administrator shall act upon all 
                petitions for rulemaking no later than 6 months 
                after the date such petitions are filed by 
                dismissing such petitions, by informing the 
                petitioner of an intention to dismiss, or by 
                issuing a notice of proposed rulemaking or 
                advanced notice of proposed rulemaking. The 
                Administrator shall issue a final regulation, 
                or take other final action, not later than 16 
                months after the last day of the public comment 
                period for the regulations or, in the case of 
                an advanced notice of proposed rulemaking, if 
                issued, not later than 24 months after the date 
                of publication in the Federal Register of 
                notice of the proposed rulemaking. On February 
                1 and August 1 of each year the Administrator 
                shall submit to the Committee on Transportation 
                and Infrastructure of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation of the Senate a 
                letter listing each deadline the Administrator 
                missed under this subparagraph during the 6-
                month period ending on such date, including an 
                explanation for missing the deadline and a 
                projected date on which the action that was 
                subject to the deadline will be taken.
                  (B) Approval of Secretary of 
                Transportation.--
                          (i) The Administrator may not issue a 
                        proposed regulation or final regulation 
                        that is likely to result in the 
                        expenditure by State, local, and tribal 
                        governments in the aggregate, or by the 
                        private sector, of $250,000,000 or more 
                        (adjusted annually for inflation 
                        beginning with the year following the 
                        date of the enactment of the Wendell H. 
                        Ford Aviation Investment and Reform Act 
                        for the 21st Century [enacted April 5, 
                        2000]) in any year, or any regulation 
                        which is significant, unless the 
                        Secretary of Transportation approves 
                        the issuance of the regulation in 
                        advance. For purposes of this 
                        paragraph, a regulation is significant 
                        if the Administrator, in consultation 
                        with the Secretary (as appropriate), 
                        determines that the regulation is 
                        likely to--
                                  (I) have an annual effect on 
                                the economy of $250,000,000 or 
                                more or adversely affect in a 
                                substantial material way the 
                                economy, a sector of the 
                                economy, productivity, 
                                competition, jobs, the 
                                environment, public health or 
                                safety, or State, local, or 
                                tribal governments or 
                                communities; or
                                  (II) raise novel or 
                                significant legal or policy 
                                issues arising out of legal 
                                mandates that may substantially 
                                and materially affect other 
                                transportation modes.
                          (ii) In an emergency, the 
                        Administrator may issue a regulation 
                        described in clause (i) without prior 
                        approval by the Secretary, but any such 
                        emergency regulation is subject to 
                        ratification by the Secretary after it 
                        is issued and shall be rescinded by the 
                        Administrator within 5 days (excluding 
                        Saturdays, Sundays, and legal public 
                        holidays) after issuance if the 
                        Secretary fails to ratify its issuance.
                          (iii) Any regulation that does not 
                        meet the criteria of clause (i), and 
                        any regulation or other action that is 
                        a routine or frequent action or a 
                        procedural action, may be issued by the 
                        Administrator without review or 
                        approval by the Secretary.
                          (iv) The Administrator shall submit a 
                        copy of any regulation requiring 
                        approval by the Secretary under clause 
                        (i) to the Secretary, who shall either 
                        approve it or return it to the 
                        Administrator with comments within 45 
                        days after receiving it.
                  (C) Periodic review.--
                          (i) Beginning on the date which is 3 
                        years after the date of the enactment 
                        of the Air Traffic Management System 
                        Performance Improvement Act of 1996, 
                        the Administrator shall review any 
                        unusually burdensome regulation issued 
                        by the Administrator after such date of 
                        enactment beginning not later than 3 
                        years after the effective date of the 
                        regulation to determine if the cost 
                        assumptions were accurate, the benefit 
                        of the regulations, and the need to 
                        continue such regulations in force in 
                        their present form.
                          (ii) The Administrator may identify 
                        for review under the criteria set forth 
                        in clause (i) unusually burdensome 
                        regulations that were issued before the 
                        date of the enactment of the Air 
                        Traffic Management System Performance 
                        Improvement Act of 1996 [enacted Oct. 
                        9, 1996] and that have been in force 
                        for more than 3 years.
                          (iii) For purposes of this 
                        subparagraph, the term ``unusually 
                        burdensome regulation'' means any 
                        regulation that results in the annual 
                        expenditure by State, local, and tribal 
                        governments in the aggregate, or by the 
                        private sector, of $25,000,000 or more 
                        (adjusted annually for inflation 
                        beginning with the year following the 
                        date of the enactment of the Air 
                        Traffic Management System Performance 
                        Act of 1996 ) in any year.
                          (iv) The periodic review of 
                        regulations may be performed by 
                        advisory committees and the Management 
                        Advisory Council established under 
                        subsection (p).
          (4) Definition of political appointee.--For purposes 
        of this subsection, the term ``political appointee'' 
        means any individual who--
                  (A) is employed in a position listed in 
                sections 5312 through 5316 of title 5 (relating 
                to the Executive Schedule);
                  (B) is a limited term appointee, limited 
                emergency appointee, or noncareer appointee in 
                the Senior Executive Service, as defined under 
                paragraphs (5), (6), and (7), respectively, of 
                section 3132(a) of title 5; or
                  (C) is employed in a position in the 
                executive branch of the Government of a 
                confidential or policy-determining character 
                under schedule C of subpart C of part 213 of 
                title 5 of the Code of Federal Regulations.
  (g) Duties and powers of Administrator.--
          (1) Except as provided in paragraph (2) of this 
        subsection, the Administrator shall carry out--
                  (A) duties and powers of the Secretary of 
                Transportation under subsection (f) of this 
                section related to aviation safety (except 
                those related to transportation, packaging, 
                marking, or description of hazardous material) 
                and stated in sections 308(b), 1132(c) and (d), 
                40101(c), 40103(b), 40106(a), 40108, 40109(b), 
                40113(a), 40113(c), 40113(d), 40113(e), 
                40114(a), and 40119, chapter 445 (except 
                sections 44501(b), 44502(a)(2), 44502(a)(3), 
                44502(a)(4), 44503, 44506, 44509, 44510, 44514, 
                and 44515), chapter 447 (except sections 44717, 
                44718(a), 44718(b), 44719, 44720, 44721(b), 
                44722, and 44723), chapter 449 (except sections 
                44903(d), 44904, 44905, 44907-44911, 44913, 
                44915, and 44931-44934), chapter 451, chapter 
                453, sections 46104, 46301(d) and (h)(2), 
                46303(c), 46304-46308, 46310, 46311, and 46313-
                46316, chapter 465, and sections 47504(b) 
                (related to flight procedures), 47508(a), and 
                48107 of this title; and
                  (B) additional duties and powers prescribed 
                by the Secretary of Transportation.
          (2) In carrying out sections 40119, 44901, 44903(a)-
        (c) and (e), 44906, 44912, 44935-44937, 44938(a) and 
        (b), and 48107 of this title, paragraph (1)(A) of this 
        subsection does not apply to duties and powers vested 
        in the Director of Intelligence and Security by section 
        44931 of this title.
  (h) Section 40101(d) of this title applies to duties and 
powers specified in subsection (g)(1) of this section. Any of 
those duties and powers may be transferred to another part of 
the Department only when specifically provided by law or a 
reorganization plan submitted under chapter 9 of title 5. A 
decision of the Administrator in carrying out those duties or 
powers is administratively final.
  (i) The Deputy Administrator shall carry out duties and 
powers prescribed by the Administrator. The Deputy 
Administrator acts for the Administrator when the Administrator 
is absent or unable to serve, or when the office of the 
Administrator is vacant.
  (j) There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.
  (k) Authorization of appropriations for operations.--
          (1) Salaries, operations, and maintenance. There is 
        authorized to be appropriated to the Secretary of 
        Transportation for salaries, operations, and 
        maintenance of the Administration--
                  [(A) $7,591,000,000 for fiscal year 2004;
                  [(B) $7,732,000,000 for fiscal year 2005;
                  [(C) $7,889,000,000 for fiscal year 2006; and
                  [(D) $8,064,000,000 for fiscal year 2007.
                  (A) $8,726,000,000 for fiscal year 2008;
                  (B) $8,978,000,000 for fiscal year 2009;
                  (C) $9,305,000,000 for fiscal year 2010; and
                  (D) $9,590,000,000 for fiscal year 2011.
          Such sums shall remain available until expended.
          (2) Authorized expenditures. Out of amounts 
        appropriated under paragraph (1), the following 
        expenditures are authorized:
                  (A) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to support 
                infrastructure systems development for both 
                general aviation and the vertical flight 
                industry.
                  (B) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to establish helicopter 
                approach procedures using current technologies 
                (such as the Global Positioning System) to 
                support all-weather, emergency medical service 
                for trauma patients.
                  (C) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to revise existing 
                terminal and en route procedures and instrument 
                flight rules to facilitate the takeoff, flight, 
                and landing of tiltrotor aircraft and to 
                improve the national airspace system by 
                separating such aircraft from congested flight 
                paths of fixed-wing aircraft.
                  (D) Such sums as may be necessary for fiscal 
                years 2004 through 2007 for the Center for 
                Management Development of the Federal Aviation 
                Administration to operate training courses and 
                to support associated student travel for both 
                residential and field courses.
                  (E) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to carry out and expand 
                the Air Traffic Control Collegiate Training 
                Initiative.
                  (F) Such sums as may be necessary for fiscal 
                years 2004 through 2007 for the completion of 
                the Alaska aviation safety project with respect 
                to the 3 dimensional mapping of Alaska's main 
                aviation corridors.
                  (G) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to carry out the 
                Aviation Safety Reporting System.
  (l) Personnel and services.--
          (1) Officers and employees.--Except as provided in 
        subsections (a) and (g) of section 40122, the 
        Administrator is authorized, in the performance of the 
        functions of the Administrator, to appoint, transfer, 
        and fix the compensation of such officers and 
        employees, including attorneys, as may be necessary to 
        carry out the functions of the Administrator and the 
        Administration. In fixing compensation and benefits of 
        officers and employees, the Administrator shall not 
        engage in any type of bargaining, except to the extent 
        provided for in section 40122(a), nor shall the 
        Administrator be bound by any requirement to establish 
        such compensation or benefits at particular levels.
          (2) Experts and consultants.--The Administrator is 
        authorized to obtain the services of experts and 
        consultants in accordance with section 3109 of title 5.
          (3) Transportation and per diem expenses.--The 
        Administrator is authorized to pay transportation 
        expenses, and per diem in lieu of subsistence expenses, 
        in accordance with chapter 57 of title 5.
          (4) Use of personnel from other agencies.--The 
        Administrator is authorized to utilize the services of 
        personnel of any other Federal agency (as such term is 
        defined under section 551(1) of title 5).
          (5) Voluntary services.--
                  (A) General rule.--In exercising the 
                authority to accept gifts and voluntary 
                services under section 326 of this title, and 
                without regard to section 1342 of title 31, the 
                Administrator may not accept voluntary and 
                uncompensated services if such services are 
                used to displace Federal employees employed on 
                a full-time, part-time, or seasonal basis.
                  (B) Incidental expenses.--The Administrator 
                is authorized to provide for incidental 
                expenses, including transportation, lodging, 
                and subsistence, for volunteers who provide 
                voluntary services under this subsection.
                  (C) Limited treatment as federal employees.--
                An individual who provides voluntary services 
                under this subsection shall not be considered a 
                Federal employee for any purpose other than for 
                purposes of chapter 81 of title 5, relating to 
                compensation for work injuries, and chapter 171 
                of title 28, relating to tort claims.
          (6) Contracts.--The Administrator is authorized to 
        enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as may be 
        necessary to carry out the functions of the 
        Administrator and the Administration. The Administrator 
        may enter into such contracts, leases, cooperative 
        agreements, and other transactions with any Federal 
        agency (as such term is defined in section 551(1) of 
        title 5) or any instrumentality of the United States, 
        any State, territory, or possession, or political 
        subdivision thereof, any other governmental entity, or 
        any person, firm, association, corporation, or 
        educational institution, on such terms and conditions 
        as the Administrator may consider appropriate.
          (7) Air Traffic Services.--In determining what 
        actions to take, by rule or through an agreement or 
        transaction under paragraph (6) or under section 44502, 
        to permit non-government providers of communications, 
        navigation, surveillance or other services to provide 
        such services in the National Airspace System, or to 
        require the usage of such services, the Administrator 
        shall consider whether such actions would--
                  (A) promote the safety of life and property;
                  (B) improve the efficiency of the National 
                Airspace System and reduce the regulatory 
                burden upon National Airspace System users, 
                based upon sound engineering principles, user 
                operational requirements, and marketplace 
                demands;
                  (C) encourage competition and provide 
                services to the largest feasible number of 
                users; and
                  (D) take into account the unique role served 
                by general aviation.
  (m) Cooperation by Administrator.--With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, 
personnel, and facilities of any other Federal agency (as such 
term is defined in section 551(1) of title 5) and any other 
public or private entity. The Administrator may also cooperate 
with appropriate officials of other public and private agencies 
and instrumentalities concerning the use of services, 
equipment, personnel, and facilities. The head of each Federal 
agency shall cooperate with the Administrator in making the 
services, equipment, personnel, and facilities of the Federal 
agency available to the Administrator. The head of a Federal 
agency is authorized, notwithstanding any other provision of 
law, to transfer to or to receive from the Administration, 
[without] with or without reimbursement, supplies, personnel, 
services, and equipment other than administrative supplies or 
equipment.
  (n) Acquisition.--
          (1) In general.--The Administrator is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise), construct, 
                improve, repair, operate, and maintain--
                          (i) air traffic control facilities 
                        and equipment;
                          (ii) research and testing sites and 
                        facilities; and
                          (iii) such other real and personal 
                        property (including office space and 
                        patents), or any interest therein, 
                        within and outside the continental 
                        United States as the Administrator 
                        considers necessary;
                  (B) to lease to others such real and personal 
                property; and
                  (C) to provide by contract or otherwise for 
                eating facilities and other necessary 
                facilities for the welfare of employees of the 
                Administration at the installations of the 
                Administration, and to acquire, operate, and 
                maintain equipment for these facilities.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (o) Transfers of funds.--The Administrator is authorized to 
accept transfers of unobligated balances and unexpended 
balances of funds appropriated to other Federal agencies (as 
such term is defined in section 551(1) of title 5) to carry out 
functions transferred by law to the Administrator or functions 
transferred pursuant to law to the Administrator on or after 
the date of the enactment of the Air Traffic Management System 
Performance Improvement Act of 1996.
  [(p) Management Advisory Council and Air Traffic Services 
Board.--
          [(1) Establishment.--Within 3 months after the date 
        of the enactment of the Air Traffic Management System 
        Performance Improvement Act of 1996, the Administrator 
        shall establish an advisory council which shall be 
        known as the Federal Aviation Management Advisory 
        Council (in this subsection referred to as the 
        ``Council''). With respect to Administration 
        management, policy, spending, funding, and regulatory 
        matters affecting the aviation industry, the Council 
        may submit comments, recommended modifications, and 
        dissenting views to the Administrator. The 
        Administrator shall include in any submission to 
        Congress, the Secretary, or the general public, and in 
        any submission for publication in the Federal Register, 
        a description of the comments, recommended 
        modifications, and dissenting views received from the 
        Council, together with the reasons for any differences 
        between the views of the Council and the views or 
        actions of the Administrator.
          [(2) Membership.--The Council shall consist of 13 
        members, who shall consist of--
                  [(A) a designee of the Secretary of 
                Transportation;
                  [(B) a designee of the Secretary of Defense;
                  [(C) 10 members representing aviation 
                interests, appointed by--
                          [(i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate, except that 
                        initial appointments made after May 1, 
                        2003, shall be made by the Secretary of 
                        Transportation; and
                          [(ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation; and
                  [(D) 1 member appointed, from among 
                individuals who are the leaders of their 
                respective unions of air traffic control system 
                employees, by the Secretary of Transportation.
          [(3) Qualifications.--No officer or employee of the 
        United States Government may be appointed to the 
        Council under paragraph (2)(C) or to the Air Traffic 
        Services Committee.
          [(4) Functions.--
                  [(A) In general.--
                          [(i) The Council shall provide advice 
                        and counsel to the Administrator on 
                        issues which affect or are affected by 
                        the operations of the Administrator. 
                        The Council shall function as an 
                        oversight resource for management, 
                        policy, spending, and regulatory 
                        matters under the jurisdiction of the 
                        Administration.
                          [(ii) The Council shall review the 
                        rulemaking cost-benefit analysis 
                        process and develop recommendations to 
                        improve the analysis and ensure that 
                        the public interest is fully protected.
                          [(iii) The Council shall review the 
                        process through which the 
                        Administration determines to use 
                        advisory circulars and service 
                        bulletins.
                  [(B) Meetings.--The Council shall meet on a 
                regular and periodic basis or at the call of 
                the chairman or of the Administrator.
                  [(C) Access to documents and staff.--The 
                Administration may give the Council or Air 
                Traffic Services Committee appropriate access 
                to relevant documents and personnel of the 
                Administration, and the Administrator shall 
                make available, consistent with the authority 
                to withhold commercial and other proprietary 
                information under section 552 of title 5 
                (commonly known as the ``Freedom of Information 
                Act''), cost data associated with the 
                acquisition and operation of air traffic 
                service systems. Any member of the Council or 
                Air Traffic Services Committee who receives 
                commercial or other proprietary data from the 
                Administrator shall be subject to the 
                provisions of section 1905 of title 18, 
                pertaining to unauthorized disclosure of such 
                information.
          [(5) Federal Advisory Committee Act not to apply.--
        The Federal Advisory Committee Act (5 U.S.C. App.) does 
        not apply to the Council, the Air Traffic Services 
        Committee, or such aviation rulemaking committees as 
        the Administrator shall designate.
          [(6) Administrative matters.--
                  [(A) Terms of members appointed under 
                paragraph (2)(c).--Members of the Council 
                appointed under paragraph (2)(C) shall be 
                appointed for a term of 3 years. Of the members 
                first appointed by the President under 
                paragraph (2)(C)--
                          [(i) 3 shall be appointed for terms 
                        of 1 year;
                          [(ii) 4 shall be appointed for terms 
                        of 2 years; and
                          [(iii) 3 shall be appointed for terms 
                        of 3 years.
                  [(B) Term for air traffic control 
                representative.--The member appointed under 
                paragraph (2)(D) shall be appointed for a term 
                of 3 years, except that the term of such 
                individual shall end whenever the individual no 
                longer meets the requirements of paragraph 
                (2)(D).
                  [(C) Terms for Air Traffic Services Committee 
                members.--The members appointed to the Air 
                Traffic Services Committee shall be appointed 
                for a term of 5 years, except that the first 
                members of the Committee shall be the members 
                of the Air Traffic Services Subcommittee of the 
                Council on the day before the date of enactment 
                of the Vision 100--Century of Aviation 
                Reauthorization Act who shall serve in an 
                advisory capacity until such time as the 
                President appoints the members of the Committee 
                under paragraph (7).
                  [(D) Reappointment.--An individual may not be 
                appointed to the Committee to more than two 5-
                year terms.
                  [(E) Vacancy.--Any vacancy on the Council or 
                Committee shall be filled in the same manner as 
                the original appointment, except that any 
                vacancy caused by a member appointed by the 
                President under paragraph (2)(C)(i) shall be 
                filled by the Secretary in accordance with 
                paragraph (2)(C)(ii). Any member appointed to 
                fill a vacancy occurring before the expiration 
                of the term for which the member's predecessor 
                was appointed shall be appointed for the 
                remainder of that term.
                  [(F) Continuation in office.--A member of the 
                Council or Committee whose term expires shall 
                continue to serve until the date on which the 
                member's successor takes office.
                  [(G) Removal.--Any member of the Council 
                appointed under paragraph (2)(D) may be removed 
                for cause by the President or Secretary whoever 
                makes the appointment. Any member of the 
                Committee may be removed for cause by the 
                Secretary.
                  [(H) Claims against members of Committee.--
                          [(i) In general.--A member appointed 
                        to the Committee shall have no personal 
                        liability under Federal law with 
                        respect to any claim arising out of or 
                        resulting from an act or omission by 
                        such member within the scope of service 
                        as a member of the Committee.
                          [(ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                  [(I) to affect any other 
                                immunity or protection that may 
                                be available to a member of the 
                                Subcommittee [Committee] under 
                                applicable law with respect to 
                                such transactions;
                                  [(II) to affect any other 
                                right or remedy against the 
                                United States under applicable 
                                law; or
                                  [(III) to limit or alter in 
                                any way the immunities that are 
                                available under applicable law 
                                for Federal officers and 
                                employees.
                  [(I) Ethical considerations.--
                          [(i) Financial disclosure.--During 
                        the entire period that an individual is 
                        serving as a member of the Committee, 
                        such individual shall be treated as 
                        serving as an officer or employee 
                        referred to in section 101(f) of the 
                        Ethics in Government Act of 1978 for 
                        purposes of title I of such Act; except 
                        that section 101(d) of such Act shall 
                        apply without regard to the number of 
                        days of service in the position.
                          [(ii) Restrictions on post-
                        employment.--For purposes of section 
                        207(c) of title 18, an individual who 
                        is a member of the Committee shall be 
                        treated as an employee referred to in 
                        section 207(c)(2)(A)(i) of such title 
                        during the entire period the individual 
                        is a member of the Committee; except 
                        that subsections (c)(2)(B) and (f) of 
                        section 207 of such title shall not 
                        apply.
                  [(J) Chairman; vice chairman.--The Council 
                shall elect a chair and a vice chair from among 
                the members appointed under paragraph (2)(C), 
                each of whom shall serve for a term of 1 year. 
                The vice chair shall perform the duties of the 
                chairman in the absence of the chairman.
                  [(K) Travel and per diem.--Each member of the 
                Council or Committee shall be paid actual 
                travel expenses, and per diem in lieu of 
                subsistence expenses when away from his or her 
                usual place of residence, in accordance with 
                section 5703 of title 5.
                  [(L) Detail of personnel from the 
                administration.--The Administrator shall make 
                available to the Council or Committee such 
                staff, information, and administrative services 
                and assistance as may reasonably be required to 
                enable the Council or Committee to carry out 
                its responsibilities under this subsection.
          [(7) Air Traffic Services Committee.--
                  [(A) Establishment.--The Administrator shall 
                establish a committee that is independent of 
                the Council by converting the Air Traffic 
                Services Subcommittee of the Council, as in 
                effect on the day before the date of enactment 
                of the Vision 100--Century of Aviation 
                Reauthorization Act [enacted Dec. 12, 2003], 
                into such committee. The committee shall be 
                known as the Air Traffic Services Committee (in 
                this subsection referred to as the 
                ``Committee'').
                  [(B) Membership and qualifications.--Subject 
                to paragraph (6)(C), the Committee shall 
                consist of five members, one of whom shall be 
                the Administrator and shall serve as 
                chairperson. The remaining members shall be 
                appointed by the President with the advice and 
                consent of the Senate and--
                          [(i) shall have a fiduciary 
                        responsibility to represent the public 
                        interest;
                          [(ii) shall be citizens of the United 
                        States; and
                          [(iii) shall be appointed without 
                        regard to political affiliation and 
                        solely on the basis of their 
                        professional experience and expertise 
                        in one or more of the following areas 
                        and, in the aggregate, should 
                        collectively bring to bear expertise in 
                        all of the following areas:
                                  [(I) Management of large 
                                service organizations.
                                  [(II) Customer service.
                                  [(III) Management of large 
                                procurements.
                                  [(IV) Information and 
                                communications technology.
                                  [(V) Organizational 
                                development.
                                  [(VI) Labor relations.
                  [(C) Prohibitions on members of Committee.--
                No member of the Committee may--
                          [(i) have a pecuniary interest in, or 
                        own stock in or bonds of, an aviation 
                        or aeronautical enterprise, except an 
                        interest in a diversified mutual fund 
                        or an interest that is exempt from the 
                        application of section 208 of title 18;
                          [(ii) engage in another business 
                        related to aviation or aeronautics; or
                          [(iii) be a member of any 
                        organization that engages, as a 
                        substantial part of its activities, in 
                        activities to influence aviation-
                        related legislation.
                  [(D) General responsibilities.--
                          [(i) Oversight.--The Committee shall 
                        oversee the administration, management, 
                        conduct, direction, and supervision of 
                        the air traffic control system.
                          [(ii) Confidentiality.--The Committee 
                        shall ensure that appropriate 
                        confidentiality is maintained in the 
                        exercise of its duties.
                  [(E) Specific responsibilities.--The 
                Committee shall have the following specific 
                responsibilities:
                          [(i) Strategic plans.--To review, 
                        approve, and monitor the strategic plan 
                        for the air traffic control system, 
                        including the establishment of--
                                  [(I) a mission and 
                                objectives;
                                  [(II) standards of 
                                performance relative to such 
                                mission and objectives, 
                                including safety, efficiency, 
                                and productivity; and
                                  [(III) annual and long-range 
                                strategic plans.
                          [(ii) Modernization and 
                        improvement.--To review and approve--
                                  [(I) methods to accelerate 
                                air traffic control 
                                modernization and improvements 
                                in aviation safety related to 
                                air traffic control; and
                                  [(II) procurements of air 
                                traffic control equipment in 
                                excess of $100,000,000.
                          [(iii) Operational plans.--To review 
                        the operational functions of the air 
                        traffic control system, including--
                                  [(I) plans for modernization 
                                of the air traffic control 
                                system;
                                  [(II) plans for increasing 
                                productivity or implementing 
                                cost-saving measures; and
                                  [(III) plans for training and 
                                education.
                          [(iv) Management.--To--
                                  [(I) review and approve the 
                                Administrator's appointment of 
                                a Chief Operating Officer under 
                                section 106(r);
                                  [(II) review the 
                                Administrator's selection, 
                                evaluation, and compensation of 
                                senior executives of the 
                                Administration who have program 
                                management responsibility over 
                                significant functions of the 
                                air traffic control system;
                                  [(III) review and approve the 
                                Administrator's plans for any 
                                major reorganization of the 
                                Administration that would 
                                impact on the management of the 
                                air traffic control system;
                                  [(IV) review and approve the 
                                Administrator's cost accounting 
                                and financial management 
                                structure and technologies to 
                                help ensure efficient and cost-
                                effective air traffic control 
                                operation; and
                                  [(V) review the performance 
                                and compensation of managers 
                                responsible for major 
                                acquisition projects, including 
                                the ability of the managers to 
                                meet schedule and budget 
                                targets.
                          [(v) Budget.--To--
                                  [(I) review and make 
                                recommendations on the budget 
                                request of the Administration 
                                related to the air traffic 
                                control system prepared by the 
                                Administrator;
                                  [(II) submit such budget 
                                recommendations to the 
                                Secretary; and
                                  [(III) base such budget 
                                recommendations on the annual 
                                and long-range strategic plans.
                  [(F) Committee personnel matters and 
                expenses.--
                          [(i) Personnel matters.--The 
                        Committee may appoint and terminate for 
                        purposes of employment by the Committee 
                        any personnel that may be necessary to 
                        enable the Committee to perform its 
                        duties, and may procure temporary and 
                        intermittent services under section 
                        40122.
                          [(ii) Travel expenses.--Each member 
                        of the Committee shall receive travel 
                        expenses, including per diem in lieu of 
                        subsistence, in accordance with 
                        applicable provisions under subchapter 
                        I of chapter 57 of title 5, United 
                        States Code.
                  [(G) Administrative matters.--
                          [(i) Powers of chair.--Except as 
                        otherwise provided by a majority vote 
                        of the Committee, the powers of the 
                        chairperson shall include--
                                  [(I) establishing committees;
                                  [(II) setting meeting places 
                                and times;
                                  [(III) establishing meeting 
                                agendas; and
                                  [(IV) developing rules for 
                                the conduct of business.
                          [(ii) Meetings.--The Committee shall 
                        meet at least quarterly and at such 
                        other times as the chairperson 
                        determines appropriate.
                          [(iii) Quorum.--Three members of the 
                        Committee shall constitute a quorum. A 
                        majority of members present and voting 
                        shall be required for the Committee to 
                        take action.
                  [(H) Reports.--
                          [(i) Annual.--The Committee shall 
                        each year report with respect to the 
                        conduct of its responsibilities under 
                        this title to the Secretary, the 
                        Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives, and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate.
                          [(ii) Additional report.--If a 
                        determination by the Committee under 
                        subparagraph (D)(i) that the 
                        organization and operation of the air 
                        traffic control system are not allowing 
                        the Administration to carry out its 
                        mission, the Committee shall report 
                        such determination to the Secretary, 
                        the Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives, and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate.
                          [(iii) Action of Administrator on 
                        report.--Not later than 60 days after 
                        the date of a report of the Committee 
                        under this subparagraph, the 
                        Administrator shall take action with 
                        respect to such report. If the 
                        Administrator overturns a 
                        recommendation of the Committee, the 
                        Administrator shall report such action 
                        to the President, the Committee on 
                        Transportation and Infrastructure of 
                        the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                          [(iv) Comptroller General's report.--
                        Not later than April 30, 2003, the 
                        Comptroller General of the United 
                        States shall transmit to the Committee 
                        on Transportation and Infrastructure of 
                        the House of Representatives and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate a report 
                        on the success of the Committee in 
                        improving the performance of the air 
                        traffic control system.
                  [(I) Authorization.--There are authorized to 
                be appropriated to the Committee such sums as 
                may be necessary for the Committee to carry out 
                its activities.
          [(8) Air traffic control system defined.--In this 
        section, the term ``air traffic control system'' has 
        the meaning such term has under section 40102(a).]
  (p) Air Traffic Control Modernization Oversight Board.--
          (1) Establishment.--The Secretary shall establish an 
        advisory Board which shall be known as the Air Traffic 
        Control Modernization Oversight Board.
          (2) Membership.--The Board shall be comprised of 7 
        members, who shall consist of--
                  (A) the Administrator of the Federal Aviation 
                Administration and a representative from the 
                Department of Defense;
                  (B) 1 member who shall have a fiduciary 
                responsibility to represent the public 
                interest; and
                  (C) 4 members representing aviation 
                interests: interests, as follows:
                          (i) 1 representative that is the 
                        chief executive officer of an airport.
                          (ii) 1 representative that is the 
                        chief executive officer of a passenger 
                        or cargo air carrier.
                          (iii) 1 representative of a labor 
                        organization representing employees at 
                        the Federal Aviation Administration 
                        that are involved with the operation, 
                        maintenance or procurement of the air 
                        traffic control system.
                          (iv) 1 representative with extensive 
                        operational experience in the general 
                        aviation community.
          (3) Appointment and qualifications.--
                  (A) Members of the Board appointed under 
                paragraphs (2)(B) and (2)(C) shall be appointed 
                by the President, by and with the advice and 
                consent of the Senate.
                  (B) Members of the Board appointed under 
                paragraph (2)(B) shall be citizens of the 
                United States and shall be appointed without 
                regard to political affiliation and solely on 
                the basis of their professional experience and 
                expertise in one or more of the following areas 
                and, in the aggregate, should collectively 
                bring to bear expertise in--
                          (i) management of large service 
                        organizations;
                          (ii) customer service;
                          (iii) management of large 
                        procurements;
                          (iv) information and communications 
                        technology;
                          (v) organizational development; and
                          (vi) labor relations.
          (4) Functions.--
                  (A) In general.--The Board shall--
                          (i) review and provide advice on the 
                        Administration's modernization 
                        programs, budget, and cost accounting 
                        system;
                          (ii) review the Administration's 
                        strategic plan and make recommendations 
                        on the non-safety program portions of 
                        the plan, and provide advice on the 
                        safety programs of the plan;
                          (iii) review the operational 
                        efficiency of the air traffic control 
                        system and make recommendations on the 
                        operational and performance metrics for 
                        that system;
                          (iv) approve capital expenditures for 
                        a project of $100,000,000 or more 
                        related to the system;
                          (v) approve by July 31 of each year 
                        the Administrator's budget request for 
                        facilities and equipment prior to its 
                        submission to the Office of Management 
                        and Budget;
                          (vi) approve the Federal Aviation 
                        Administration's Capital Investment 
                        Plan prior to its submission to the 
                        Congress;
                          (vii) annually approve the 
                        Operational Evolution Plan;
                          (viii) approve the Administrator's 
                        selection of a Chief Operating Officer 
                        for the Air Traffic Organization and on 
                        the appointment and compensation of its 
                        managers; and
                          (ix) approve the selection of the 
                        head of the Joint Planning Development 
                        Office.
                  (B) Meetings.--The Board shall meet on a 
                regular and periodic basis or at the call of 
                the Chairman or of the Administrator.
                  (C) Access to documents and staff.--The 
                Administration may give the Board appropriate 
                access to relevant documents and personnel of 
                the Administration, and the Administrator shall 
                make available, consistent with the authority 
                to withhold commercial and other proprietary 
                information under section 552 of title 5, cost 
                data associated with the acquisition and 
                operation of air traffic control systems. Any 
                member of the Board who receives commercial or 
                other proprietary data from the Administrator 
                shall be subject to the provisions of section 
                1905 of title 18, pertaining to unauthorized 
                disclosure of such information.
          (5) Federal advisory committee act not to apply.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) shall 
        not apply to the Board or such rulemaking committees as 
        the Administrator shall designate.
          (6) Administrative matters.--
                  (A) Terms of members.--Members of the Board 
                appointed under paragraph (2)(B) and (2)(C) 
                shall be appointed for a term of 4 years.
                  (B) Reappointment.--No individual may be 
                appointed to the Board for more than 8 years 
                total.
                  (C) Vacancy.--Any vacancy on the Board shall 
                be filled in the same manner as the original 
                position. Any member appointed to fill a 
                vacancy occurring before the expiration of the 
                term for which the member's predecessor was 
                appointed shall be appointed for a term of 4 
                years.
                  (D) Continuation in office.--A member of the 
                Board whose term expires shall continue to 
                serve until the date on which the member's 
                successor takes office.
                  (E) Removal.--Any member of the Board 
                appointed under paragraph (2)(B) or (2)(C) may 
                be removed by the President for cause.
                  (F) Claims against members of the board.--
                          (i) In general.--A member appointed 
                        to the Board shall have no personal 
                        liability under State or Federal law 
                        with respect to any claim arising out 
                        of or resulting from an act or omission 
                        by such member within the scope of 
                        service as a member of the Board.
                          (ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                  (I) to affect any other 
                                immunity or protection that may 
                                be available to a member of the 
                                Board under applicable law with 
                                respect to such transactions;
                                  (II) to affect any other 
                                right or remedy against the 
                                United States under applicable 
                                law; or
                                  (III) to limit or alter in 
                                any way the immunities that are 
                                available under applicable law 
                                for Federal officers and 
                                employees.
                  (G) Ethical considerations.--Each member of 
                the Board appointed under paragraph (2)(B) must 
                certify that he or she--
                          (i) does not have a pecuniary 
                        interest in, or own stock in or bonds 
                        of, an aviation or aeronautical 
                        enterprise, except an interest in a 
                        diversified mutual fund or an interest 
                        that is exempt from the application of 
                        section 208 of title 18;
                          (ii) does not engage in another 
                        business related to aviation or 
                        aeronautics; and
                          (iii) is not a member of any 
                        organization that engages, as a 
                        substantial part of its activities, in 
                        activities to influence aviation-
                        related legislation.
                  (H) Chairman; vice chairman.--The Board shall 
                elect a chair and a vice chair from among its 
                members, each of whom shall serve for a term of 
                2 years. The vice chair shall perform the 
                duties of the chairman in the absence of the 
                chairman.
                  (I) Compensaton.--No member shall receive any 
                compensation or other benefits from the Federal 
                Government for serving on the Board, except for 
                compensation benefits for injuries under 
                subchapter I of chapter 81 of title 5 and 
                except as provided under subparagraph (J).
                  (J) Expenses.--Each member of the Board shall 
                be paid actual travel expenses and per diem in 
                lieu of subsistence expenses when away from his 
                or her usual place of residence, in accordance 
                with section 5703 of title 5.
                  (K) Board resources.--From resources 
                otherwise available to the Administrator, the 
                Chairman shall appoint such staff to assist the 
                board and provide impartial analysis, and the 
                Administrator shall make available to the Board 
                such information and administrative services 
                and assistance, as may reasonably be required 
                to enable the Board to carry out its 
                responsibilities under this subsection.
                  (L) Quorum and voting.--A simple majority of 
                members of the Board shall constitute a quorum. 
                A majority vote of members present and voting 
                shall be required for the Committee to take 
                action.
          (7) Air traffic control system defined.--In this 
        subsection, the term ``air traffic control system'' has 
        the meaning given that term in section 40102(a).
  (q) Aircraft Noise Ombudsman.--
          (1) Establishment.--There shall be in the 
        Administration an Aircraft Noise Ombudsman.
          (2) General duties and responsibilities.--The 
        Ombudsman shall--
                  (A) be appointed by the Administrator;
                  (B) serve as a liaison with the public on 
                issues regarding aircraft noise; and
                  (C) be consulted when the Administration 
                proposes changes in aircraft routes so as to 
                minimize any increases in aircraft noise over 
                populated areas.
          (3) Number of full-time equivalent employees.--The 
        appointment of an Ombudsman under this subsection shall 
        not result in an increase in the number of full-time 
        equivalent employees in the Administration.
  (r) Chief Operating Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control 
                system to be appointed by the Administrator, 
                with the approval of the Air Traffic Services 
                Committee. The Chief Operating Officer shall 
                report directly to the Administrator and shall 
                be subject to the authority of the 
                Administrator.
                  (B) Qualifications.--The Chief Operating 
                Officer shall have a demonstrated ability in 
                management and knowledge of or experience in 
                aviation.
                  (C) Term.--The Chief Operating Officer shall 
                be appointed for a term of 5 years.
                  (D) Removal.--The Chief Operating Officer 
                shall serve at the pleasure of the 
                Administrator, except that the Administrator 
                shall make every effort to ensure stability and 
                continuity in the leadership of the air traffic 
                control system.
                  (E) Vacancy.--Any individual appointed to 
                fill a vacancy in the position of Chief 
                Operating Officer occurring before the 
                expiration of the term for which the 
                individual's predecessor was appointed shall be 
                appointed for the remainder of that term.
          (2) Compensation.--
                  (A) In general.--The Chief Operating Officer 
                shall be paid at an annual rate of basic pay to 
                be determined by the Administrator, with the 
                approval of the Air Traffic Services Committee. 
                The annual rate may not exceed the annual 
                compensation paid under section 102 of title 3. 
                The Chief Operating Officer shall be subject to 
                the post-employment provisions of section 207 
                of title 18 as if the position of Chief 
                Operating Officer were described in section 
                207(c)(2)(A)(i) of that title.
                  (B) Bonus.--In addition to the annual rate of 
                basic pay authorized by subparagraph (A), the 
                Chief Operating Officer may receive a bonus for 
                any calendar year not to exceed 30 percent of 
                the annual rate of basic pay, based upon the 
                Administrator's evaluation of the Chief 
                Operating Officer's performance in relation to 
                the performance goals set forth in the 
                performance agreement described in paragraph 
                (3).
          (3) Annual performance agreement.--The Administrator 
        and the Chief Operating Officer, in consultation with 
        the Air Traffic Services Committee, shall enter into an 
        annual performance agreement that sets forth measurable 
        organization and individual goals for the Chief 
        Operating Officer in key operational areas. The 
        agreement shall be subject to review and renegotiation 
        on an annual basis.
          (4) Annual performance report.--The Chief Operating 
        Officer shall prepare and transmit to the Secretary of 
        Transportation, the Committee on Transportation and 
        Infrastructure of the House of Representatives, and the 
        Committee on Commerce, Science, and Transportation of 
        the Senate an annual management report containing such 
        information as may be prescribed by the Secretary.
          (5) Responsibilities.--The Administrator may delegate 
        to the Chief Operating Officer, or any other authority 
        within the Administration responsibilities, including 
        the following:
                  (A) Strategic plans.--To implement the 
                strategic plan of the Administration for the 
                air traffic control system in order to 
                further--
                          (i) a mission and objectives;
                          (ii) standards of performance 
                        relative to such mission and 
                        objectives, including safety, 
                        efficiency, and productivity;
                          (iii) annual and long-range strategic 
                        plans; and
                          (iv) methods of the Administration to 
                        accelerate air traffic control 
                        modernization and improvements in 
                        aviation safety related to air traffic 
                        control.
                  (B) Operations.--To oversee the day-to-day 
                operational functions of the Administration for 
                air traffic control, including--
                          (i) modernization of the air traffic 
                        control system;
                          (ii) increasing productivity or 
                        implementing cost-saving measures;
                          (iii) training and education; and
                          (iv) the management of cost-
                        reimbursable contracts.
                  (C) Budget.--To--
                          (i) develop a budget request of the 
                        Administration related to the air 
                        traffic control system;
                          (ii) submit such budget request to 
                        the Administrator and the Committee; 
                        and
                          (iii) ensure that the budget request 
                        supports the agency's annual and long-
                        range strategic plans for air traffic 
                        control services.

                 SUBTITLE II. OTHER GOVERNMENT AGENCIES

            CHAPTER 11. NATIONAL TRANSPORTATION SAFETY BOARD

                SUBCHAPTER IV. ENFORCEMENT AND PENALTIES

Sec. 1153. Judicial review

  (a) General.--The appropriate court of appeals of the United 
States or the United States Court of Appeals for the District 
of Columbia Circuit may review a final order of the National 
Transportation Safety Board under this chapter. A person 
disclosing a substantial interest in the order may apply for 
review by filing a petition not later than 60 days after the 
order of the Board is issued.
  (b) Persons Seeking Judicial Review of Aviation Matters.--
          (1) A person disclosing a substantial interest in an 
        order related to an aviation matter issued by the Board 
        under this chapter may apply for review of the order by 
        filing a petition for review in the United States Court 
        of Appeals for the District of Columbia Circuit or in 
        the court of appeals of the United States for the 
        circuit in which the person resides or has its 
        principal place of business. The petition must be filed 
        not later than 60 days after the order is issued. The 
        court may allow the petition to be filed after the 60 
        days only if there was a reasonable ground for not 
        filing within that 60-day period.
          (2) When a petition is filed under paragraph (1) of 
        this subsection, the clerk of the court immediately 
        shall send a copy of the petition to the Board. The 
        Board shall file with the court a record of the 
        proceeding in which the order was issued.
          (3) When the petition is sent to the Board, the court 
        has exclusive jurisdiction to affirm, amend, modify, or 
        set aside any part of the order and may order the Board 
        to conduct further proceedings. After reasonable notice 
        to the Board, the court may grant interim relief by 
        staying the order or taking other appropriate action 
        when cause for its action exists. Findings of fact by 
        the Board, if supported by substantial evidence, are 
        conclusive.
          (4) In reviewing an order under this subsection, the 
        court may consider an objection to an order of the 
        Board only if the objection was made in the proceeding 
        conducted by the Board or if there was a reasonable 
        ground for not making the objection in the proceeding.
          (5) A decision by a court under this subsection may 
        be reviewed only by the Supreme Court under section 
        1254 of title 28.
  (c) Administrator Seeking Judicial Review of Aviation 
Matters.--When the Administrator of the Federal Aviation 
Administration decides that an order of the Board under 
[section 44709 or] section 44703(d), 44709, or 46301(d)(5) of 
this title will have a significant adverse impact on carrying 
out this chapter related to an aviation matter, the 
Administrator may obtain judicial review of the order under 
section 46110 of this title. The Administrator shall be made a 
party to the judicial review proceedings. Findings of fact of 
the Board are conclusive if supported by substantial evidence.
  (d) Commandant Seeking Judicial Review of Maritime Matters.--
If the Commandant of the Coast Guard decides that an order of 
the Board issued pursuant to a review of a Coast Guard action 
under section 1133 of this title will have an adverse impact on 
maritime safety or security, the Commandant may obtain judicial 
review of the order under subsection (a). The Commandant, in 
the official capacity of the Commandant, shall be a party to 
the judicial review proceedings.

                    PART A--AIR COMMERCE AND SAFETY

                           SUBPART I--GENERAL

                    CHAPTER 401--GENERAL PROVISIONS

Sec. 40102. Definitions

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

           *       *       *       *       *       *       *

Sec. 40110. General procurement authority

  (a) General.--In carrying out this part, the Administrator of 
the Federal Aviation Administration--
          (1) to the extent that amounts are available for 
        obligation, may acquire services or, by condemnation or 
        otherwise, an interest in property, including an 
        interest in airspace immediately adjacent to and needed 
        for airports and other air navigation facilities owned 
        by the United States Government and operated by the 
        Administrator;
          (2) may dispose of an interest in property for 
        adequate [compensation; and] compensation, and the 
        amount received may be credited to the appropriation 
        current when the amount is received; and
          (3) may construct and improve laboratories and other 
        test facilities.
  (b) Purchase of Housing Units.--
          (1) Authority.--In carrying out this part, the 
        Administrator may purchase a housing unit (including a 
        condominium or a housing unit in a building owned by a 
        cooperative) that is located outside the contiguous 
        United States if the cost of the unit is $300,000 or 
        less.
          (2) Adjustments for inflation.--For fiscal years 
        beginning after September 30, 1997, the Administrator 
        may adjust the dollar amount specified in paragraph (1) 
        to take into account increases in local housing costs.
          (3) Continuing obligations.--Notwithstanding section 
        1341 of title 31, the Administrator may purchase a 
        housing unit under paragraph (1) even if there is an 
        obligation thereafter to pay necessary and reasonable 
        fees duly assessed upon such unit, including fees 
        related to operation, maintenance, taxes, and 
        insurance.
          (4) Certification to congress.--The Administrator may 
        purchase a housing unit under paragraph (1) only if, at 
        least 30 days before completing the purchase, the 
        Administrator transmits to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate a report containing--
                  (A) a description of the housing unit and its 
                price;
                  (B) a certification that the price does not 
                exceed the median price of housing units in the 
                area; and
                  (C) a certification that purchasing the 
                housing unit is the most cost-beneficial means 
                of providing necessary accommodations in 
                carrying out this part.
          (5) Payment of fees.--The Administrator may pay, when 
        due, fees resulting from the purchase of a housing unit 
        under this subsection from any amounts made available 
        to the Administrator.
  (c) Duties and Powers.--When carrying out subsection (a) of 
this section, the Administrator of the Federal Aviation 
Administration may--
          (1) notwithstanding section 1341(a)(1) of title 31, 
        lease an interest in property for not more than 20 
        years;
          (2) consider the reasonable probable future use of 
        the underlying land in making an award for a 
        condemnation of an interest in airspace;
          (3) construct, or acquire an interest in, a public 
        building (as defined in section 3301(a) of title 40) 
        only under a delegation of authority from the 
        Administrator of General Services; and
          [(4) use procedures other than competitive procedures 
        only when the property or services needed by the 
        Administrator of the Federal Aviation Administration 
        are available from only one responsible source or only 
        from a limited number of responsible sources and no 
        other type of property or services will satisfy the 
        needs of the Administrator; and]
          [(5)] (4) dispose of property under subsection (a)(2) 
        of this section, except for airport and airway property 
        and technical equipment used for the special purposes 
        of the Administration, only under sections 121, 123, 
        and 126 and chapter 5 of title 40.
  (d) Acquisition Management System.--
          (1) In general.--In consultation with such non-
        governmental experts in acquisition management systems 
        as the Administrator may employ, and notwithstanding 
        provisions of Federal acquisition law, the 
        Administrator shall develop and implement an 
        acquisition management system for the Administration 
        that addresses the unique needs of the agency and, at a 
        minimum, provides for--
                  (A) more timely and cost-effective 
                acquisitions of equipment, services, property, 
                and materials; and
                  (B) the resolution of bid protests and 
                contract disputes related thereto, using 
                consensual alternative dispute resolution 
                techniques to the maximum extent practicable.
          (2) Applicability of federal acquisition law.--The 
        following provisions of Federal acquisition law shall 
        not apply to the new acquisition management system 
        developed and implemented pursuant to paragraph (1):
                  (A) Title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 
                252-266).
                  (B) The Office of Federal Procurement Policy 
                Act (41 U.S.C. 401 et seq.).
                  (C) The Federal Acquisition Streamlining Act 
                of 1994 (Public Law 103-355), except for 
                section 315 (41 U.S.C. 265). For the purpose of 
                applying section 315 of that Act to the system, 
                the term ``executive agency'' is deemed to 
                refer to the Federal Aviation Administration.
                  (D) The Small Business Act (15 U.S.C. 631 et 
                seq.), except that all reasonable opportunities 
                to be awarded contracts shall be provided to 
                small business concerns and small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals.
                  (E) The Competition in Contracting Act.
                  (F) Subchapter V of chapter 35 of title 31, 
                relating to the procurement protest system.
                  (G) The Federal Acquisition Regulation and 
                any laws not listed in subparagraphs (A) 
                through (F) providing authority to promulgate 
                regulations in the Federal Acquisition 
                Regulation.
          (3) Certain provisions of the office of federal 
        procurement policy act.--Notwithstanding paragraph 
        (2)(B), section 27 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 423) shall apply to the new 
        acquisition management system developed and implemented 
        under paragraph (1) with the following modifications:
                  (A) Subsections (f) and (g) shall not apply.
                  (B) Within 90 days after the date of the 
                enactment of the Wendell H. Ford Aviation 
                Investment and Reform Act for the 21st Century, 
                the Administrator shall adopt definitions for 
                the acquisition management system that are 
                consistent with the purpose and intent of the 
                Office of Federal Procurement Policy Act.
                  (C) After the adoption of those definitions, 
                the criminal, civil, and administrative 
                remedies provided under the Office of Federal 
                Procurement Policy Act apply to the acquisition 
                management system.
                  (D) In the administration of the acquisition 
                management system, the Administrator may take 
                adverse personnel action under section 
                27(e)(3)(A)(iv) of the Office of Federal 
                Procurement Policy Act in accordance with the 
                procedures contained in the Administration's 
                personnel management system.
          (4) Adjudication of certain bid protests and contract 
        disputes.---A bid protest or contract dispute that is 
        not addressed or resolved through alternative dispute 
        resolution shall be adjudicated by the Administrator 
        through Dispute Resolution Officers or Special Masters 
        of the Federal Aviation Administration Office of 
        Dispute Resolution for Acquisition, acting pursuant to 
        sections 46102, 46104, 46105, 46106 and 46107 and shall 
        be subject to judicial review under section 46110 and 
        to section 504 of title 5.
  (e) Prohibition on Release of Offeror Proposals.--
          (1) General rule.--Except as provided in paragraph 
        (2), a proposal in the possession or control of the 
        Administrator may not be made available to any person 
        under section 552 of title 5.
          (2) Exception.--Paragraph (1) shall not apply to any 
        portion of a proposal of an offeror the disclosure of 
        which is authorized by the Administrator pursuant to 
        procedures published in the Federal Register. The 
        Administrator shall provide an opportunity for public 
        comment on the procedures for a period of not less than 
        30 days beginning on the date of such publication in 
        order to receive and consider the views of all 
        interested parties on the procedures. The procedures 
        shall not take effect before the 60th day following the 
        date of such publication.
          (3) Proposal defined.--In this subsection, the term 
        ``proposal'' means information contained in or 
        originating from any proposal, including a technical, 
        management, or cost proposal, submitted by an offeror 
        in response to the requirements of a solicitation for a 
        competitive proposal.

           *       *       *       *       *       *       *

Sec. 40113. Administrative

  (a) General Authority.--The Secretary of Transportation (or 
the Under Secretary of Transportation for Security with respect 
to security duties and powers designated to be carried out by 
the Under Secretary or the Administrator of the Federal 
Aviation Administration with respect to aviation safety duties 
and powers designated to be carried out by the Administrator) 
may take action the Secretary, Under Secretary, or 
Administrator, as appropriate, considers necessary to carry out 
this part, including conducting investigations, prescribing 
regulations, standards, and procedures, and issuing orders.
  (b) Hazardous Material.--In carrying out this part, the 
Secretary has the same authority to regulate the transportation 
of hazardous material by air that the Secretary has under 
section 5103 of this title. However, this subsection does not 
prohibit or regulate the transportation of a firearm (as 
defined in section 232 of title 18) or ammunition for a 
firearm, when transported by an individual for personal use.
  (c) Governmental Assistance.--The Secretary (or the 
Administrator of the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the Administrator) may use the assistance of the 
Administrator of the National Aeronautics and Space 
Administration and any research or technical department, 
agency, or instrumentality of the United States Government on 
matters related to aircraft fuel and oil, and to the design, 
material, workmanship, construction, performance, maintenance, 
and operation of aircraft, aircraft engines, propellers, 
appliances, and air navigation facilities. Each department, 
agency, and instrumentality may conduct scientific and 
technical research, investigations, and tests necessary to 
assist the Secretary or Administrator of the Federal Aviation 
Administration in carrying out this part. This part does not 
authorize duplicating laboratory research activities of a 
department, agency, or instrumentality.
  (d) Indemnification.--The Under Secretary of Transportation 
for Security or the Administrator of the Federal Aviation 
Administration may indemnify an officer or employee of the 
Transportation Security Administration or Federal Aviation 
Administration, as the case may be, against a claim or judgment 
arising out of an act that the Under Secretary or 
Administrator, as the case may be, decides was committed within 
the scope of the official duties of the officer or employee.
  (e) Assistance to Foreign Aviation Authorities.--
          (1) Safety-related training and operational 
        services.--The Administrator may provide safety-related 
        training and operational services to foreign aviation 
        authorities (whether public or private) with or without 
        reimbursement, if the Administrator determines that 
        providing such services promotes aviation [safety.] 
        safety or efficiency. The Administrator is authorized 
        to participate in, and submit offers in response to, 
        competitions to provide these services, and to contract 
        with foreign aviation authorities to provide these 
        services consistent with the provisions under section 
        106(l)(6) of this title. The Administrator is also 
        authorized, notwithstanding any other provision of law 
        or policy, to accept payments in arrears. To the extent 
        practicable, air travel reimbursed under this 
        subsection shall be conducted on United States air 
        carriers.
          (2) Reimbursement sought.--The Administrator shall 
        actively seek reimbursement for services provided under 
        this subsection from foreign aviation authorities 
        capable of providing such reimbursement.
          (3) Crediting appropriations.--Funds received by the 
        Administrator pursuant to this section shall be 
        credited to the [appropriation from which the expenses 
        were incurred in providing such services.] 
        appropriation current when the expenditures are or were 
        paid, or the appropriation current when the amount is 
        received.
          (4) Reporting.--Not later than December 31, 1995, and 
        annually thereafter, the Administrator shall transmit 
        to Congress a list of the foreign aviation authorities 
        to which the Administrator provided services under this 
        subsection in the preceding fiscal year. Such list 
        shall specify the dollar value of such services and any 
        reimbursement received for such services.
  (f) Application of Certain Regulations to Alaska.--In 
amending title 14, Code of Federal Regulations, in a manner 
affecting intrastate aviation in Alaska, the Administrator of 
the Federal Aviation Administration shall consider the extent 
to which Alaska is not served by transportation modes other 
than aviation, and shall establish such regulatory distinctions 
as the Administrator considers appropriate.

           *       *       *       *       *       *       *

[Sec. 40117. Passenger facility fees]

Sec. 40117. Passenger facility charges

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Airport, commercial service airport, and public 
        agency.--The terms ``airport'', ``commercial service 
        airport'', and ``public agency'' have the meaning those 
        terms have under section 47102.
          (2) Eligible agency.--The term ``eligible agency'' 
        means a public agency that controls a commercial 
        service airport.
          (3) Eligible airport-related project.--The term 
        ``eligible airport-related project'' means any of the 
        following projects:
                  (A) A project for airport development or 
                airport planning under subchapter I of chapter 
                471.
                  (B) A project for terminal development 
                described in section 47110(d).
                  (C) A project for costs of terminal 
                development referred to in subparagraph (B) 
                incurred after August 1, 1986, at an airport 
                that did not have more than .25 percent of the 
                total annual passenger boardings in the United 
                States in the most recent calendar year for 
                which data is available and at which total 
                passenger boardings declined by at least 16 
                percent between calendar year 1989 and calendar 
                year 1997.
                  (D) A project for airport noise capability 
                planning under section 47505.
                  (E) A project to carry out noise 
                compatibility measures eligible for assistance 
                under section 47504, whether or not a program 
                for those measures has been approved under 
                section 47504.
                  (F) A project for constructing gates and 
                related areas at which passengers board or exit 
                aircraft. In the case of a project required to 
                enable additional air service by an air carrier 
                with less than 50 percent of the annual 
                passenger boardings at an airport, the project 
                for constructing gates and related areas may 
                include structural foundations and floor 
                systems, exterior building walls and load-
                bearing interior columns or walls, windows, 
                door and roof systems, building utilities 
                (including heating, air conditioning, 
                ventilation, plumbing, and electrical service), 
                and aircraft fueling facilities adjacent to the 
                gate.
                  (G) A project for converting vehicles and 
                ground support equipment used at a commercial 
                service airport to low-emission technology (as 
                defined in section 47102) or to use cleaner 
                burning conventional fuels, retrofitting of any 
                such vehicles or equipment that are powered by 
                a diesel or gasoline engine with emission 
                control technologies certified or verified by 
                the Environmental Protection Agency to reduce 
                emissions, or acquiring for use at a commercial 
                service airport vehicles and ground support 
                equipment that include low-emission technology 
                or use cleaner burning fuels if the airport is 
                located in an air quality nonattainment area 
                (as defined in section 171(2) of the Clean Air 
                Act (42 U.S.C. 7501(2))) or a maintenance area 
                referred to in section 175A of such Act (42 
                U.S.C. 7505a) and if such project will result 
                in an airport receiving appropriate emission 
                credits as described in section 47139.
                  (H) A project for comprehensive planning and 
                redevelopment activities for properties 
                acquired under section 47504, including master 
                plans, traffic studies, environmental 
                evaluation, economic and feasibility studies, 
                rezoning and re-platting efforts, utility 
                upgrades and site preparation in cooperation 
                with neighboring local jurisdictions 
                undertaking community redevelopment in the 
                area.
          (4) Ground support equipment.--The term ``ground 
        support equipment'' means service and maintenance 
        equipment used at an airport to support aeronautical 
        operations and related activities.
          (5) Passenger facility [fee] charge.--The term 
        ``passenger facility [fee] charge'' means a [fee] 
        charge imposed under this section.
          (6) Passenger facility revenue.--The term ``passenger 
        facility revenue'' means revenue derived from a 
        passenger facility [fee] charge.
  (b) General Authority.--(1) The Secretary of Transportation 
may authorize under this section an eligible agency to impose a 
passenger facility [fee] charge of $1, $2, or $3 on each paying 
passenger of an air carrier or foreign air carrier boarding an 
aircraft at an airport the agency controls to finance an 
eligible airport-related project, including making payments for 
debt service on indebtedness incurred to carry out the project, 
to be carried out in connection with the airport or any other 
airport the agency controls.
  (2) A State, political subdivision of a State, or authority 
of a State or political subdivision that is not the eligible 
agency may not regulate or prohibit the imposition or 
collection of a passenger facility [fee] charge or the use of 
the passenger facility revenue.
  (3) A passenger facility [fee] charge may be imposed on a 
passenger of an air carrier or foreign air carrier originating 
or connecting at the commercial service airport that the agency 
controls.
  (4) In lieu of authorizing a [fee] charge under paragraph 
(1), the Secretary may authorize under this section an eligible 
agency to impose a passenger facility [fee] charge of $4.00 or 
$4.50 on each paying passenger of an air carrier or foreign air 
carrier boarding an aircraft at an airport the agency controls 
to finance an eligible airport-related project, including 
making payments for debt service on indebtedness incurred to 
carry out the project, if the Secretary finds--
          (A) in the case of an airport that has more than .25 
        percent of the total number of annual boardings in the 
        United States, that the project will make a significant 
        contribution to improving air safety and security, 
        increasing competition among air carriers, reducing 
        current or anticipated congestion, or reducing the 
        impact of aviation noise on people living near the 
        airport; and
          (B) that the project cannot be paid for from funds 
        reasonably expected to be available for the programs 
        referred to in section 48103.
  (5) Maximum cost for certain low-emission technology 
projects.--The maximum cost that may be financed by imposition 
of a passenger facility [fee] charge under this section for a 
project described in subsection (a)(3)(G) with respect to a 
vehicle or ground support equipment may not exceed the 
incremental amount of the project cost that is greater than the 
cost of acquiring a vehicle or equipment that is not low-
emission and would be used for the same purpose, or the cost of 
low-emission retrofitting, as determined by the Secretary.
  (6) Debt service for certain projects.--In addition to the 
uses specified in paragraphs (1) and (4), the Secretary may 
authorize a passenger facility [fee] charge imposed under 
paragraph (1) or (4) to be used for making payments for debt 
service on indebtedness incurred to carry out at the airport a 
project that is not an eligible airport-related project if the 
Secretary determines that such use is necessary due to the 
financial need of the airport.
  (7) Noise mitigation for certain schools.--
          (A) In general.--In addition to the uses specified in 
        paragraphs (1), (4), and (6), the Secretary may 
        authorize a passenger facility charge imposed under 
        paragraph (1) or (4) at a large hub airport that is the 
        subject of an amended judgment and final order in 
        condemnation filed on January 7, 1980, by the Superior 
        Court of the State of California for the county of Los 
        Angeles, to be used for a project to carry out noise 
        mitigation for a building, or for the replacement of a 
        relocatable building with a permanent building, in the 
        noise impacted area surrounding the airport at which 
        such building is used primarily for educational 
        purposes, notwithstanding the air easement granted or 
        any terms to the contrary in such judgment and final 
        order, if--
                  (i) the Secretary determines that the 
                building is adversely affected by airport 
                noise;
                  (ii) the building is owned or chartered by 
                the school district that was the plaintiff in 
                case number 986,442 or 986,446, which was 
                resolved by such judgment and final order;
                  (iii) the project is for a school identified 
                in 1 of the settlement agreements effective 
                February 16, 2005, between the airport and each 
                of the school districts;
                  (iv) in the case of a project to replace a 
                relocatable building with a permanent building, 
                the eligible project costs are limited to the 
                actual structural construction costs necessary 
                to mitigate aircraft noise in instructional 
                classrooms to an interior noise level meeting 
                current standards of the Federal Aviation 
                Administration; and
                  (v) the project otherwise meets the 
                requirements of this section for authorization 
                of a passenger facility charge.
          (B) Eligible project costs.--In subparagraph (A)(iv), 
        the term `eligible project costs' means the difference 
        between the cost of standard school construction and 
        the cost of construction necessary to mitigate 
        classroom noise to the standards of the Federal 
        Aviation Administration.
  [(c) Applications.--(1) An eligible agency must submit to the 
Secretary an application for authority to impose a passenger 
facility fee. The application shall contain information and be 
in the form that the Secretary may require by regulation.
  [(2) Before submitting an application, the eligible agency 
must provide reasonable notice to, and an opportunity for 
consultation with, air carriers and foreign air carriers 
operating at the airport. The Secretary shall prescribe 
regulations that define reasonable notice and contain at least 
the following requirements:
          [(A) The agency must provide written notice of 
        individual projects being considered for financing by a 
        passenger facility fee and the date and location of a 
        meeting to present the projects to air carriers and 
        foreign air carriers operating at the airport.
          [(B) Not later than 30 days after written notice is 
        provided under subparagraph (A) of this paragraph, each 
        air carrier and foreign air carrier operating at the 
        airport must provide to the agency written notice of 
        receipt of the notice. Failure of a carrier to provide 
        the notice may be deemed certification of agreement 
        with the project by the carrier under subparagraph (D) 
        of this paragraph.
          [(C) Not later than 45 days after written notice is 
        provided under subparagraph (A) of this paragraph, the 
        agency must conduct a meeting to provide air carriers 
        and foreign air carriers with descriptions of projects 
        and justifications and a detailed financial plan for 
        projects.
          [(D) Not later than 30 days after the meeting, each 
        air carrier and foreign air carrier must provide to the 
        agency certification of agreement or disagreement with 
        projects (or total plan for the projects). Failure to 
        provide the certification is deemed certification of 
        agreement with the project by the carrier. A 
        certification of disagreement is void if it does not 
        contain the reasons for the disagreement.
          [(E) The agency must include in its application or 
        notice submitted under subparagraph (A) copies of all 
        certifications of agreement or disagreement received 
        under subparagraph (D).
          [(F) For the purpose of this section, an eligible 
        agency providing notice and an opportunity for 
        consultation to an air carrier or foreign air carrier 
        is deemed to have satisfied the requirements of this 
        paragraph if the eligible agency limits such notices 
        and consultations to air carriers and foreign air 
        carriers that have a significant business interest at 
        the airport. In the subparagraph, the term 
        ``significant business interest'' means an air carrier 
        or foreign air carrier that had no less than 1.0 
        percent of passenger boardings at the airport in the 
        prior calendar year, had at least 25,000 passenger 
        boardings at the airport in the prior calendar year, or 
        provides scheduled service at the airport.
  [(3) Before submitting an application, the eligible agency 
must provide reasonable notice and an opportunity for public 
comment. The Secretary shall prescribe regulations that define 
reasonable notice and provide for at least the following under 
this paragraph:
          [(A) A requirement that the eligible agency provide 
        public notice of intent to collect a passenger facility 
        fee so as to inform those interested persons and 
        agencies that may be affected. The public notice may 
        include--
                  [(i) publication in local newspapers of 
                general circulation;
                  [(ii) publication in other local media; and
                  [(iii) posting the notice on the agency's 
                Internet website.
          [(B) A requirement for submission of public comments 
        no sooner than 30 days, and no later than 45 days, 
        after the date of the publication of the notice.
          [(C) A requirement that the agency include in its 
        application or notice submitted under subparagraph (A) 
        copies of all comments received under subparagraph (B).
  [(4) After receiving an application, the Secretary may 
provide notice and an opportunity to air carriers, foreign air 
carriers, and other interested persons to comment on the 
application. The Secretary shall make a final decision on the 
application not later than 120 days after receiving it.]
  (c) Procedural Requirements for Imposition of Passenger 
Facility Charge.--
          (1) In general.--An eligible agency must submit to 
        those air carriers and foreign air carriers operating 
        at the airport with a significant business interest, as 
        defined in paragraph (3), and to the Secretary and make 
        available to the public annually a report, in the form 
        required by the Secretary, on the status of the 
        eligible agency's passenger facility charge program, 
        including--
                  (A) the total amount of program revenue held 
                by the agency at the beginning of the 12 months 
                covered by the report;
                  (B) the total amount of program revenue 
                collected by the agency during the period 
                covered by the report;
                  (C) the amount of expenditures with program 
                revenue made by the agency on each eligible 
                airport-related project during the period 
                covered by the report;
                  (D) each airport-related project for which 
                the agency plans to collect and use program 
                revenue during the next 12-month period covered 
                by the report, including the amount of revenue 
                projected to be used for such project;
                  (E) the level of program revenue the agency 
                plans to collect during the next 12-month 
                period covered by the report;
                  (F) a description of the notice and 
                consultation process with air carriers and 
                foreign air carriers under paragraph (3), and 
                with the public under paragraph (4), including 
                a copy of any adverse comments received and how 
                the agency responded; and
                  (G) any other information on the program that 
                the Secretary may require.
          (2) Implementation.--Subject to the requirements of 
        paragraphs (3), (4), (5), and (6), the eligible agency 
        may implement the planned collection and use of 
        passenger facility charges in accordance with its 
        report upon filing the report as required in paragraph 
        (1).
          (3) Consultation with carriers for new projects.--
                  (A) An eligible agency proposing to collect 
                or use passenger facility charge revenue for a 
                project not previously approved by the 
                Secretary or not included in a report required 
                by paragraph (1) that was submitted in a prior 
                year shall provide to air carriers and foreign 
                air carriers operating at the airport 
                reasonable notice, and an opportunity to 
                comment on the planned collection and use of 
                program revenue before providing the report 
                required under paragraph (1). The Secretary 
                shall prescribe by regulation what constitutes 
                reasonable notice under this paragraph, which 
                shall at a minimum include--
                          (i) that the eligible agency provide 
                        to air carriers and foreign air 
                        carriers operating at the airport 
                        written notice of the planned 
                        collection and use of passenger 
                        facility charge revenue;
                          (ii) that the notice include a full 
                        description and justification for a 
                        proposed project;
                          (iii) that the notice include a 
                        detailed financial plan for the 
                        proposed project; and
                          (iv) that the notice include the 
                        proposed level for the passenger 
                        facility charge.
                  (B) An eligible agency providing notice and 
                an opportunity for comment shall be deemed to 
                have satisfied the requirements of this 
                paragraph if the eligible agency provides such 
                notice to air carriers and foreign air carriers 
                that have a significant business interest at 
                the airport. For purposes of this subparagraph, 
                the term `significant business interest' means 
                an air carrier or foreign air carrier that--
                          (i) had not less than 1.0 percent of 
                        passenger boardings at the airport in 
                        the prior calendar year;
                          (ii) had at least 25,000 passenger 
                        boardings at the airport in the prior 
                        calendar year; or
                          (iii) provides scheduled service at 
                        the airport.
                  (C) Not later than 45 days after written 
                notice is provided under subparagraph (A), each 
                air carrier and foreign air carrier may provide 
                written comments to the eligible agency 
                indicating its agreement or disagreement with 
                the project or, if applicable, the proposed 
                level for a passenger facility charge.
                  (D) The eligible agency may include, as part 
                of the notice and comment process, a 
                consultation meeting to discuss the proposed 
                project or, if applicable, the proposed level 
                for a passenger facility charge. If the agency 
                provides a consultation meeting, the written 
                comments specified in subparagraph (C) shall be 
                due not later than 30 days after the meeting.
          (4) Public notice and comment.--
                  (A) An eligible agency proposing to collect 
                or use passenger facility charge revenue for a 
                project not previously approved by the 
                Secretary or not included in a report required 
                by paragraph (1) that was filed in a prior year 
                shall provide reasonable notice and an 
                opportunity for public comment on the planned 
                collection and use of program revenue before 
                providing the report required in paragraph (1).
                  (B) The Secretary shall prescribe by 
                regulation what constitutes reasonable notice 
                under this paragraph, which shall at a minimum 
                require--
                          (i) that the eligible agency provide 
                        public notice of intent to collect a 
                        passenger facility charge so as to 
                        inform those interested persons and 
                        agencies that may be affected;
                          (ii) appropriate methods of 
                        publication, which may include notice 
                        in local newspapers of general 
                        circulation or other local media, or 
                        posting of the notice on the agency's 
                        Internet website; and
                          (iii) submission of public comments 
                        no later than 45 days after the date of 
                        the publication of the notice.
          (5) Objections.--
                  (A) Any interested person may file with the 
                Secretary a written objection to a proposed 
                project included in a notice under this 
                paragraph provided that the filing is made 
                within 30 days after submission of the report 
                specified in paragraph (1).
                  (B) The Secretary shall provide not less than 
                30 days for the eligible agency to respond to 
                any filed objection.
                  (C) Not later than 90 days after receiving 
                the eligible agency's response to a filed 
                objection, the Secretary shall make a 
                determination whether or not to terminate 
                authority to collect the passenger facility 
                charge for the project, based on the filed 
                objection. The Secretary shall state the 
                reasons for any determination. The Secretary 
                may only terminate authority if--
                          (i) the project is not an eligible 
                        airport related project;
                          (ii) the eligible agency has not 
                        complied with the requirements of this 
                        section or the Secretary's implementing 
                        regulations in proposing the project;
                          (iii) the eligible agency has been 
                        found to be in violation of section 
                        47107(b) of this title and has failed 
                        to take corrective action, prior to the 
                        filing of the objection; or
                          (iv) in the case of a proposed 
                        increase in the passenger facility 
                        charge level, the level is not 
                        authorized by this section.
                  (D) Upon issuance of a decision terminating 
                authority, the public agency shall prepare an 
                accounting of passenger facility revenue 
                collected under the terminated authority and 
                restore the funds for use on other authorized 
                projects.
                  (E) Except as provided in subparagraph (C), 
                the eligible agency may implement the planned 
                collection and use of a passenger facility 
                charge in accordance with its report upon 
                filing the report as specified in paragraph 
                (1)(A).
          (6) Approval requirement for increased passenger 
        facility charge or intermodal ground access project.--
                  (A) An eligible agency may not collect or use 
                a passenger facility charge to finance an 
                intermodal ground access project, or increase a 
                passenger facility charge, unless the project 
                is first approved by the Secretary in 
                accordance with this paragraph.
                  (B) The eligible agency may submit to the 
                Secretary an application for authority to 
                impose a passenger facility charge for an 
                intermodal ground access project or to increase 
                a passenger facility charge. The application 
                shall contain information and be in the form 
                that the Secretary may require by regulation 
                but, at a minimum, must include copies of any 
                comments received by the agency during the 
                comment period described by subparagraph (C).
                  (C) Before submitting an application under 
                this paragraph, an eligible agency must provide 
                air carriers and foreign air carriers operating 
                at the airport, and the public, reasonable 
                notice of and an opportunity to comment on a 
                proposed intermodal ground access project or 
                the increased passenger facility charge. Such 
                notice and opportunity to comment shall conform 
                to the requirements of paragraphs (3) and (4).
                  (D) After receiving an application, the 
                Secretary may provide air carriers, foreign air 
                carriers and other interested persons notice 
                and an opportunity to comment on the 
                application. The Secretary shall make a final 
                decision on the application not later than 120 
                days after receiving it.
  (d) Limitations on Approving Applications.--The Secretary may 
approve an application that an eligible agency has submitted 
under [subsection (c) of this section to finance a specific] 
subsection (c)(6) of this section to finance an intermodal 
ground access project only if the Secretary finds, based on the 
application, that--
          (1) the amount and duration of the proposed passenger 
        facility [fee] charge will result in revenue (including 
        interest and other returns on the revenue) that is not 
        more than the amount necessary to finance the 
        [specific] project;
          [(2) each project is an eligible airport-related 
        project that will--
                  [(A) preserve or enhance capacity, safety, or 
                security of the national air transportation 
                system;
                  [(B) reduce noise resulting from an airport 
                that is part of the system; or
                  [(C) provide an opportunity for enhanced 
                competition between or among air carriers and 
                foreign air carriers;]
          (2) the project is an eligible airport-related 
        project; and
          (3) the application includes adequate justification 
        for [each of the specific projects; and] the project.
          [(4) in the case of an application to impose a [fee] 
        charge of more than $3.00 for an eligible surface 
        transportation or terminal project, the agency has made 
        adequate provision for financing the airside needs of 
        the airport, including runways, taxiways, aprons, and 
        aircraft gates.]
  (e) Limitations on Imposing [Fees] Charges.--[(1) An eligible 
agency may impose a passenger facility fee only--
          [(A) if the Secretary approves an application that 
        the agency has submitted under subsection (c) of this 
        section; and
          [(B) subject to terms the Secretary may prescribe to 
        carry out the objectives of this section.] (1) An 
        eligible agency may impose a passenger facility charge 
        only subject to terms the Secretary may prescribe to 
        carry out the objectives of this section.
  (2) A passenger facility [fee] charge may not be collected 
from a passenger--
          (A) for more than 2 boardings on a one-way trip or a 
        trip in each direction of a round trip;
          (B) for the boarding to an eligible place under 
        subchapter II of chapter 417 of this title for which 
        essential air service compensation is paid under 
        subchapter II;
          (C) enplaning at an airport if the passenger did not 
        pay for the air transportation which resulted in such 
        enplanement, including any case in which the passenger 
        obtained the ticket for the air transportation with a 
        frequent flier award coupon without monetary payment;
          (D) on flights, including flight segments, between 2 
        or more points in Hawaii;
          (E) in Alaska aboard an aircraft having a seating 
        capacity of less than 60 passengers; and
          (F) enplaning at an airport if the passenger did not 
        pay for the air transportation which resulted in such 
        enplanement due to charter arrangements and payment by 
        the Department of Defense.
  (f) Limitations on Contracts, Leases, and Use Agreements.--
(1) A contract between an air carrier or foreign air carrier 
and an eligible agency made at any time may not impair the 
authority of the agency to impose a passenger facility [fee] 
charge or to use the passenger facility revenue as provided in 
this section.
  (2) A project financed with a passenger facility [fee] charge 
may not be subject to an exclusive [long-term] lease or use 
agreement of an air carrier or foreign air carrier, as defined 
by regulations of the Secretary.
  (3) A lease or use agreement of an air carrier or foreign air 
carrier related to a project whose construction or expansion 
was financed with a passenger facility [fee] charge may not 
restrict the eligible agency from financing, developing, or 
assigning new capacity at the airport with passenger facility 
revenue.
  (g) Treatment of Revenue.--(1) Passenger facility revenue is 
not airport revenue for purposes of establishing a price under 
a contract between an eligible agency and an air carrier or 
foreign air carrier.
  (2) An eligible agency may not include in its price base the 
part of the capital costs of a project paid for by using 
passenger facility revenue to establish a price under a 
contract between the agency and an air carrier or foreign air 
carrier.
  (3) For a project for terminal development, gates and related 
areas, or a facility occupied or used by at least one air 
carrier or foreign air carrier on an exclusive or preferential 
basis, a price payable by an air carrier or foreign air carrier 
using the facilities must at least equal the price paid by an 
air carrier or foreign air carrier using a similar facility at 
the airport that was not financed with passenger facility 
revenue.
  (4) Passenger facility revenues that are held by an air 
carrier or an agent of the carrier after collection of a 
passenger facility [fee] charge constitute a trust fund that is 
held by the air carrier or agent for the beneficial interest of 
the eligible agency imposing the [fee] charge. Such carrier or 
agent holds neither legal nor equitable interest in the 
passenger facility revenues except for any handling [fee] 
charge or retention of interest collected on unremitted 
proceeds as may be allowed by the Secretary.
  (h) Compliance.--(1) As necessary to ensure compliance with 
this section, the Secretary shall prescribe regulations 
requiring recordkeeping and auditing of accounts maintained by 
an air carrier or foreign air carrier and its agent collecting 
a passenger facility [fee] charge and by the eligible agency 
imposing the [fee] charge.
  (2) The Secretary periodically shall audit and review the use 
by an eligible agency of passenger facility revenue. After 
review and a public hearing, the Secretary may end any part of 
the authority of the agency to impose a passenger facility 
[fee] charge to the extent the Secretary decides that the 
revenue is not being used as provided in this section.
  (3) The Secretary may, on complaint of an interested person 
or on the Secretary's own initiative, conduct an investigation 
into an eligible agency's collection and use of passenger 
facility charge revenue to determine whether a passenger 
facility charge is excessive or that passenger facility revenue 
is not being used as provided in this section. The Secretary 
shall prescribe regulations establishing procedures for 
complaints and investigations. The regulations may provide for 
the issuance of a final agency decision without resort to an 
oral evidentiary hearing. The Secretary shall not accept 
complaints filed under this paragraph until after the issuance 
of regulations establishing complaint procedures.
  [(3)] (4) The Secretary may set off amounts necessary to 
ensure compliance with this section against amounts otherwise 
payable to an eligible agency under subchapter I of chapter 471 
of this title if the Secretary decides a passenger facility 
[fee] charge is excessive or that passenger facility revenue is 
not being used as provided in this section.
  (i) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations--
          (1) may prescribe the time and form by which a 
        passenger facility [fee] charge takes effect;
          (2) shall--
                  (A) require an air carrier or foreign air 
                carrier and its agent to collect a passenger 
                facility [fee] charge that an eligible agency 
                imposes under this section;
                  (B) establish procedures for handling and 
                remitting money collected;
                  (C) ensure that the money, less a uniform 
                amount the Secretary determines reflects the 
                average necessary and reasonable expenses (net 
                of interest accruing to the carrier and agent 
                after collection and before remittance) 
                incurred in collecting and handling the [fee] 
                charge, is paid promptly to the eligible agency 
                for which they are collected; and
                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air transportation; and
          (3) may permit an eligible agency to request that 
        collection of a passenger facility [fee] charge be 
        waived for--
                  (A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carriers in the 
                class constitutes not more than one percent of 
                the total number of passengers enplaned 
                annually at the airport at which the [fee] 
                charge is imposed; or
                  (B) passengers enplaned on a flight to an 
                airport--
                          (i) that has fewer than 2,500 
                        passenger boardings each year and 
                        receives scheduled passenger service; 
                        or
                          (ii) in a community which has a 
                        population of less than 10,000 and is 
                        not connected by a land highway or 
                        vehicular way to the land-connected 
                        National Highway System within a State.
  (j) Limitation on Certain Actions.--A State, political 
subdivision of a State, or authority of a State or political 
subdivision that is not the eligible agency may not tax, 
regulate, or prohibit or otherwise attempt to control in any 
manner, the imposition or collection of a passenger facility 
[fee] charge or the use of the revenue from the passenger 
facility [fee] charge.
  (k) Competition Plans.--
          (1) In general.--Beginning in fiscal year 2001, no 
        eligible agency may impose a passenger facility [fee] 
        charge under this section with respect to a covered 
        airport (as such term is defined in section 47106(f)) 
        unless the agency has submitted to the Secretary a 
        written competition plan in accordance with such 
        section. This subsection does not apply to passenger 
        facility [fees] charges in effect before the date of 
        the enactment of this subsection.
          (2) Secretary shall ensure implementation and 
        compliance.--The Secretary shall review any plan 
        submitted under paragraph (1) to ensure that it meets 
        the requirements of this section, and shall review its 
        implementation from time-to-time to ensure that each 
        covered airport successfully implements its plan.
  (l) Pilot Program for Passenger Facility [Fee] Charge 
Authorizations at Nonhub Airports.--
          (1) In general.--The Secretary shall establish a 
        pilot program to test alternative procedures for 
        authorizing eligible agencies for nonhub airports to 
        impose passenger facility [fees] charges. An eligible 
        agency may impose in accordance with the provisions of 
        this subsection a passenger facility [fee] charge under 
        this section. For purposes of the pilot program, the 
        procedures in this subsection shall apply instead of 
        the procedures otherwise provided in this section.
          (2) Notice and opportunity for consultation.--The 
        eligible agency must provide reasonable notice and an 
        opportunity for consultation to air carriers and 
        foreign air carriers in accordance with subsection 
        [(c)(2)] (c)(3) and must provide reasonable notice and 
        opportunity for public comment in accordance with 
        subsection (c)(3).
          (3) Notice of intention.--The eligible agency must 
        submit to the Secretary a notice of intention to impose 
        a passenger facility [fee] charge under this 
        subsection. The notice shall include--
                  (A) information that the Secretary may 
                require by regulation on each project for which 
                authority to impose a passenger facility [fee] 
                charge is sought;
                  (B) the amount of revenue from passenger 
                facility [fees] charges that is proposed to be 
                collected for each project; and
                  (C) the level of the passenger facility [fee] 
                charge that is proposed.
          (4) Acknowledgement of receipt and indication of 
        objection.--The Secretary shall acknowledge receipt of 
        the notice and indicate any objection to the imposition 
        of a passenger facility [fee] charge under this 
        subsection for any project identified in the notice 
        within 30 days after receipt of the eligible agency's 
        notice.
          (5) Authority to impose [fee] charge.--Unless the 
        Secretary objects within 30 days after receipt of the 
        eligible agency's notice, the eligible agency is 
        authorized to impose a passenger facility [fee] charge 
        in accordance with the terms of its notice under this 
        subsection.
          (6) Regulations.--Not later than 180 days after the 
        date of enactment of this subsection, the Secretary 
        shall propose such regulations as may be necessary to 
        carry out this subsection.
          (7) Sunset.--This subsection shall cease to be 
        effective beginning on the [date that is 3 years after 
        the date of issuance of regulations to carry out this 
        subsection.] date of issuance of regulations to carry 
        out subsection (c) of this section, as amended by the 
        Aviation Investment and Modernization Act of 2007.
          (8) Acknowledgement not an order.--An acknowledgement 
        issued under paragraph (4) shall not be considered an 
        order issued by the Secretary for purposes of section 
        46110.
  (m) Financial Management of [Fees] Charges._
          (1) Handling of [fees] charges.--A covered air 
        carrier shall segregate in a separate account passenger 
        facility revenue equal to the average monthly liability 
        for [fees] charges collected under this section by such 
        carrier or any of its agents for the benefit of the 
        eligible agencies entitled to such revenue.
          (2) Trust fund status.--If a covered air carrier or 
        its agent fails to segregate passenger facility revenue 
        in violation of the subsection, the trust fund status 
        of such revenue shall not be defeated by an inability 
        of any party to identify and trace the precise funds in 
        the accounts of the air carrier.
          (3) Prohibition.--A covered air carrier and its 
        agents may not grant to any third party any security or 
        other interest in passenger facility revenue.
          (4) Compensation to eligible entities.--A covered air 
        carrier that fails to comply with any requirement of 
        this subsection, or otherwise unnecessarily causes an 
        eligible entity to expend funds, through litigation or 
        otherwise, to recover or retain payment of passenger 
        facility revenue to which the eligible entity is 
        otherwise entitled shall be required to compensate the 
        eligible agency for the costs so incurred.
          (5) Interest on amounts.--A covered air carrier that 
        collects passenger facility [fees] charges is entitled 
        to receive the interest on passenger facility [fee] 
        charge accounts if the accounts are established and 
        maintained in compliance with this subsection.
          (6) Existing regulations.--The provisions of section 
        158.49 of title 14, Code of Federal Regulations, that 
        permit the commingling of passenger facility [fees] 
        charges with other air carrier revenue shall not apply 
        to a covered air carrier.
          (7) Covered air carrier defined.--In this section, 
        the term ``covered air carrier'' means an air carrier 
        that files for chapter 7 or chapter 11 of title 11 
        bankruptcy protection, or has an involuntary chapter 7 
        of title 11 bankruptcy proceeding commenced against it, 
        after the date of enactment of this subsection.
  (n) Alternative Passenger Facility Charge Collection Pilot 
Program.--
          (1) In general.--The Secretary shall establish and 
        conduct a pilot program at not more than 6 airports 
        under which an eligible agency may impose a passenger 
        facility charge under this section without regard to 
        the dollar amount limitations set forth in paragraph 
        (1) or (4) of subsection (b) if the participating 
        eligible agency meets the requirements of paragraph 
        (2).
          (2) Collection requirements.--
                  (A) Direct collection.--An eligible agency 
                participating in the pilot program--
                          (i) may collect the charge from the 
                        passenger at the facility, via the 
                        Internet, or in any other reasonable 
                        manner; but
                          (ii) may not require or permit the 
                        charge to be collected by an air 
                        carrier or foreign air carrier for the 
                        flight segment.
                  (B) PFC collection requirement not to 
                apply.--Subpart C of part 158 of title 14, Code 
                of Federal Regulations, does not apply to the 
                collection of the passenger facility charge 
                imposed by an eligible agency participating in 
                the pilot program.

           *       *       *       *       *       *       *

Sec. 40122. Federal Aviation Administration personnel management system

  (a) In General.--
          (1) Consultation and negotiation.--In developing and 
        making changes to the personnel management system 
        initially implemented by the Administrator of the 
        Federal Aviation Administration on April 1, 1996, the 
        Administrator shall negotiate with the exclusive 
        bargaining representatives of employees of the 
        Administration certified under section 7111 of title 5 
        and consult with other employees of the Administration.
          [(2) Mediation.--If the Administrator does not reach 
        an agreement under paragraph (1) with the exclusive 
        bargaining representatives, the services of the Federal 
        Mediation and Conciliation Service shall be used to 
        attempt to reach such agreement. If the services of the 
        Federal Mediation and Conciliation Service do not lead 
        to an agreement, the Administrator's proposed change to 
        the personnel management system shall not take effect 
        until 60 days have elapsed after the Administrator has 
        transmitted the proposed change, along with the 
        objections of the exclusive bargaining representatives 
        to the change, and the reasons for such objections, to 
        Congress. The 60-day period shall not include any 
        period during which Congress has adjourned sine die.]
          (2) Dispute resolution.--
                  (A) Mediation.--If the Administrator does not 
                reach an agreement under paragraph (1) or 
                subsection (g)(2)(C) with the exclusive 
                bargaining representatives, the services of the 
                Federal Mediation and Conciliation Service 
                shall be used to attempt to reach such 
                agreement in accordance with part 1425 of title 
                29, Code of Federal Regulations. The 
                Administrator and bargaining representatives 
                may by mutual agreement adopt procedures for 
                the resolution of disputes or impasses arising 
                in the negotiation of a collective-bargaining 
                agreement.
                  (B) Binding arbitration.--If the services of 
                the Federal Mediation and Conciliation Service 
                under subparagraph (A) does not lead to an 
                agreement, the Administrator and the bargaining 
                representatives shall submit their issues in 
                controversy to the Federal Service Impasses 
                Panel in accordance with section 7119 of title 
                5. The Panel shall assist the parties in 
                resolving the impasse by asserting jurisdiction 
                and ordering binding arbitration by a private 
                arbitration board consisting of 3 members in 
                accordance with section 2471.6(a)(2)(ii) of 
                title 5, Code of Federal Regulations. The 
                executive director of the Panel shall request a 
                list of not less than 15 names of arbitrators 
                with Federal sector experience from the 
                director of the Federal Mediation and 
                Conciliation Service to be provided to the 
                Administrator and the bargaining 
                representatives. Within 10 days after receiving 
                the list, the parties shall each select 1 
                person. The 2 arbitrators shall then select a 
                third person from the list within 7 days. If 
                the 2 arbitrators are unable to agree on the 
                third person, the parties shall select the 
                third person by alternately striking names from 
                the list until only 1 name remains. If the 
                parties do not agree on the framing of the 
                issues to be submitted, the arbitration board 
                shall frame the issues. The arbitration board 
                shall give the parties a full and fair hearing, 
                including an opportunity to present evidence in 
                support of their claims, and an opportunity to 
                present their case in person, by counsel, or by 
                other representative as they may elect. 
                Decisions of the arbitration board shall be 
                conclusive and binding upon the parties. The 
                arbitration board shall render its decision 
                within 90 days after its appointment. The 
                Administrator and the bargaining representative 
                shall share costs of the arbitration equally. 
                The arbitration board shall take into 
                consideration the effect of its arbitration 
                decisions on the Federal Aviation 
                Administration's ability to attract and retain 
                a qualified workforce and the Federal Aviation 
                Administration's budget.
                  (C) Effect.--Upon reaching a voluntary 
                agreement or at the conclusion of the binding 
                arbitration under subparagraph (B) above, the 
                final agreement, except for those matters 
                decided by the arbitration board, shall be 
                subject to ratification by the exclusive 
                representative, if so requested by the 
                exclusive representative, and approval by the 
                head of the agency in accordance with 
                subsection (g)(2)(C).
                  (D) Enforcement.--Enforcement of the 
                provisions of this paragraph, and any agreement 
                hereunder, shall be in the United States 
                District Court for the District of Columbia.
          (3) Cost savings and productivity goals.--The 
        Administration and the exclusive bargaining 
        representatives of the employees shall use every 
        reasonable effort to find cost savings and to increase 
        productivity within each of the affected bargaining 
        units.
          (4) Annual budget discussions.--The Administration 
        and the exclusive bargaining representatives of the 
        employees shall meet annually for the purpose of 
        finding additional cost savings within the 
        Administration's annual budget as it applies to each of 
        the affected bargaining units and throughout the 
        agency.
  (b) Expert Evaluation.--On the date that is 3 years after the 
personnel management system is implemented, the Administration 
shall employ outside experts to provide an independent 
evaluation of the effectiveness of the system within 3 months 
after such date. For this purpose, the Administrator may 
utilize the services of experts and consultants under section 
3109 of title 5 without regard to the limitation imposed by the 
last sentence of section 3109(b) of such title, and may 
contract on a sole source basis, notwithstanding any other 
provision of law to the contrary.
  (c) Pay Restriction.--No officer or employee of the 
Administration may receive an annual rate of basic pay in 
excess of the annual rate of basic pay payable to the 
Administrator.
  (d) Ethics.--The Administration shall be subject to Executive 
Order No. 12674 and regulations and opinions promulgated by the 
Office of Government Ethics, including those set forth in 
section 2635 of title 5 of the Code of Federal Regulations.
  (e) Employee Protections.--Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay 
provided employees of the Administration shall not be 
involuntarily adversely affected by reason of the enactment of 
this section, except for unacceptable performance or by reason 
of a reduction in force or reorganization or by agreement 
between the Administration and the affected employees' 
exclusive bargaining representative.
  (f) Labor-Management Agreements.--Except as otherwise 
provided by this title, all labor-management agreements 
covering employees of the Administration that are in effect on 
the effective date of the Air Traffic Management System 
Performance Improvement Act of 1996 shall remain in effect 
until their normal expiration date, unless the Administrator 
and the exclusive bargaining representative agree to the 
contrary.
  (g) Personnel Management System.--
          (1) In general.--In consultation with the employees 
        of the Administration and such non-governmental experts 
        in personnel management systems as he may employ, and 
        notwithstanding the provisions of title 5 and other 
        Federal personnel laws, the Administrator shall develop 
        and implement, not later than January 1, 1996, a 
        personnel management system for the Administration that 
        addresses the unique demands on the agency's workforce. 
        Such a new system shall, at a minimum, provide for 
        greater flexibility in the hiring, training, 
        compensation, and location of personnel.
          (2) Applicability of title 5.--The provisions of 
        title 5 shall not apply to the new personnel management 
        system developed and implemented pursuant to paragraph 
        (1), with the exception of--
                  (A) section [2302(b), relating to 
                whistleblower protection,] 2302, including the 
                provisions for investigation and enforcement as 
                provided in chapter 12 of title 5;
                  (B) sections 3308-3320, relating to veterans' 
                preference;
                  (C) chapter 71, relating to labor-management 
                relations;
                  (D) section 7204, relating to 
                antidiscrimination;
                  (E) chapter 73, relating to suitability, 
                security, and conduct;
                  (F) chapter 81, relating to compensation for 
                work injury;
                  (G) chapters 83-85, 87, and 89, relating to 
                retirement, unemployment compensation, and 
                insurance coverage; [and]
                  (H) sections 1204, 1211-1218, 1221, and 7701-
                7703, relating to the Merit Systems Protection 
                [Board.] Board;
                  (I) subsections (b), (c), and (d) of section 
                4507 (relating to Meritorious Executive or 
                Distinguished Executive rank awards), and 
                section subsections (b) and (c) of section 
                4507a (relating to Meritorious Senior 
                Professional or Distinguished Senior 
                Professional rank-awards), except that--
                          (i) for purposes of applying such 
                        provisions to the personnel management 
                        system--
                                  (I) the term ``agency'' means 
                                the Department of 
                                Transportation;
                                  (II) the term ``senior 
                                executive'' means an Federal 
                                Aviation Administration 
                                executive;
                                  (III) the term ``career 
                                appointee'' means an Federal 
                                Aviation Administration career 
                                executive; and
                                  (IV) the term ``senior career 
                                employee'' means an Federal 
                                Aviation Administration career 
                                senior professional;
                          (ii) receipt by a career appointee of 
                        the rank of Meritorious Executive or 
                        Meritorious Senior Professional 
                        entitles such individual to a lump-sum 
                        payment of an amount equal to 20 
                        percent of annual basic pay, which 
                        shall be in addition to the basic pay 
                        paid under the Federal Aviation 
                        Administration Executive Compensation 
                        Plan; and
                          (iii) receipt by a career appointee 
                        of the rank of Distinguished Executive 
                        or Distinguished Senior Professional 
                        entitles the individual to a lump-sum 
                        payment of an amount equal to 35 
                        percent of annual basic pay, which 
                        shall be in addition to the basic pay 
                        paid under the Federal Aviation 
                        Administration Executive Compensation 
                        Plan; and
                  (J) sections 6381 through 6387, relating to 
                Family and Medical Leave.
          (3) Appeals to Merit Systems Protection Board.--Under 
        the new personnel management system developed and 
        implemented under paragraph (1), an employee of the 
        Administration may submit an appeal to the Merit 
        Systems Protection Board and may seek judicial review 
        of any resulting final orders or decisions of the Board 
        from any action that was appealable to the Board under 
        any law, rule, or regulation as of March 31, 1996. 
        Notwithstanding any other provision of law, retroactive 
        to April 1, 1996, the Board shall have the same 
        remedial authority over such employee appeals that it 
        had as of March 31, 1996.
          (4) Effective date.--This subsection shall take 
        effect on April 1, 1996.
  (h) Right To Contest Adverse Personnel Actions.--An employee 
of the Federal Aviation Administration who is the subject of a 
major adverse personnel action may contest the action either 
through any contractual grievance procedure that is applicable 
to the employee as a member of the collective bargaining unit 
or through the Administration's internal process relating to 
review of major adverse personnel actions of the 
Administration, known as Guaranteed Fair Treatment, or under 
section 40122(g)(3).
  (i) Election of Forum.--Where a major adverse personnel 
action may be contested through more than one of the indicated 
forums (such as the contractual grievance procedure, the 
Federal Aviation Administration's internal process, or that of 
the Merit Systems Protection Board), an employee must elect the 
forum through which the matter will be contested. Nothing in 
this section is intended to allow an employee to contest an 
action through more than one forum unless otherwise allowed by 
law.
  (j) Definition.--In this section, the term ``major adverse 
personnel action'' means a suspension of more than 14 days, a 
reduction in pay or grade, a removal for conduct or 
performance, a nondisciplinary removal, a furlough of 30 days 
or less (but not including placement in a nonpay status as the 
result of a lapse of appropriations or an enactment by 
Congress), or a reduction in force action.

           *       *       *       *       *       *       *

Sec. 40128. Overflights of national parks

  (a) In General.--
          (1) General requirements.--A commercial air tour 
        operator may not conduct commercial air tour operations 
        over a national park or tribal lands, as defined by 
        this section, except--
                  (A) in accordance with this section;
                  (B) in accordance with conditions and 
                limitations prescribed for that operator by the 
                Administrator; [and]
                  (C) in accordance with any applicable air 
                tour management plan for the park or tribal 
                [lands.] lands; and
                  (D) in accordance with a voluntary agreement 
                between the commercial air tour operator and 
                appropriate representatives of the national 
                park or tribal lands, as the case may be.
          (2) Application for operating authority.--
                  (A) Application required.--Before commencing 
                commercial air tour operations over a national 
                park or tribal lands, a commercial air tour 
                operator shall apply to the Administrator for 
                authority to conduct the operations over the 
                park or tribal lands.
                  (B) Competitive bidding for limited capacity 
                parks.--Whenever an air tour management plan 
                limits the number of commercial air tour 
                operations over a national park during a 
                specified time frame, the Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, shall issue operation 
                specifications to commercial air tour operators 
                that conduct such operations. The operation 
                specifications shall include such terms and 
                conditions as the Administrator and the 
                [Director] Secretary of the Interior find 
                necessary for management of commercial air tour 
                operations over the park. The Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, shall develop an open competitive 
                process for evaluating proposals from persons 
                interested in providing commercial air tour 
                operations over the park. In making a selection 
                from among various proposals submitted, the 
                Administrator, in cooperation with the 
                [Director] Secretary of the Interior, shall 
                consider relevant factors, including--
                          (i) the safety record of the person 
                        submitting the proposal or pilots 
                        employed by the person;
                          (ii) any quiet aircraft technology 
                        proposed to be used by the person 
                        submitting the proposal;
                          (iii) the experience of the person 
                        submitting the proposal with commercial 
                        air tour operations over other national 
                        parks or scenic areas;
                          (iv) the financial capability of the 
                        person submitting the proposal;
                          (v) any training programs for pilots 
                        provided by the person submitting the 
                        proposal; and
                          (vi) responsiveness of the person 
                        submitting the proposal to any relevant 
                        criteria developed by the [National 
                        Park Service] Department of the 
                        Interior for the affected park.
                  (C) Number of operations authorized.--In 
                determining the number of authorizations to 
                issue to provide commercial air tour operations 
                over a national park, the Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, shall take into consideration the 
                provisions of the air tour management plan, the 
                number of existing commercial air tour 
                operators and current level of service and 
                equipment provided by any such operators, and 
                the financial viability of each commercial air 
                tour operation.
                  (D) Cooperation with NPS.--Before granting an 
                application under this paragraph, the 
                Administrator, in cooperation with the 
                [Director] Secretary of the Interior, shall 
                develop an air tour management plan in 
                accordance with subsection (b) and implement 
                such plan.
                  (E) Time limit on response to ATMP 
                applications.--The Administrator shall make 
                every effort to act on any application under 
                this paragraph and issue a decision on the 
                application not later than 24 months after it 
                is received or amended.
                  (F) Priority.--In acting on applications 
                under this paragraph to provide commercial air 
                tour operations over a national park, the 
                Administrator shall give priority to an 
                application under this paragraph in any case in 
                which a new entrant commercial air tour 
                operator is seeking operating authority with 
                respect to that national park.
          (3) Exception.--Notwithstanding paragraph (1), 
        commercial air tour operators may conduct commercial 
        air tour operations over a national park under part 91 
        of the title 14, Code of Federal Regulations if--
                  (A) such activity is permitted under part 119 
                of such title;
                  (B) the operator secures a letter of 
                agreement from the Administrator and the 
                national park superintendent for that national 
                park describing the conditions under which the 
                operations will be conducted; and
                  (C) the total number of operations under this 
                exception is limited to not more than five 
                flights in any 30-day period over a particular 
                park.
          (4) Special rule for safety requirements.--
        Notwithstanding subsection (c), an existing commercial 
        air tour operator shall apply, not later than 90 days 
        after the date of the enactment of this section, for 
        operating authority under part 119, 121, or 135 of 
        title 14, Code of Federal Regulations. A new entrant 
        commercial air tour operator shall apply for such 
        authority before conducting commercial air tour 
        operations over a national park or tribal lands. The 
        Administrator shall make every effort to act on any 
        such application for a new entrant and issue a decision 
        on the application not later than 24 months after it is 
        received or amended.
          (5) Waiver for national parks with 100 or fewer 
        commercial air tour operations per year.--
                  (A) In general.--Subject to subparagraph (B), 
                and without further administrative or 
                environmental process, the Secretary may waive 
                the requirements of this section with respect 
                to a national park over which 100 or fewer 
                commercial air tour operations are conducted in 
                a year.
                  (B) Exception to waiver if necessary to 
                protect park resources.--
                          (i) In general.--The Secretary may 
                        not waive the requirements of this 
                        section if the Secretary determines 
                        that an air tour management plan is 
                        necessary to protect park resources and 
                        values.
                          (ii) Notice and publication.--The 
                        Secretary shall inform the 
                        Administrator in writing of the 
                        determinations under clause (i), and 
                        the Secretary and the Administrator 
                        shall publish in the Federal Register a 
                        list of the national parks that fall 
                        under this subparagraph.
          (6) Waiver with respect to voluntary agreements.--
                  (A) In general.--The Secretary may waive the 
                requirements of this section if a commercial 
                air tour operator enters into a voluntary 
                agreement with a national park to manage 
                commercial air tour operations over the 
                national park.
                  (B) Purpose of voluntary agreements.--A 
                voluntary agreement described in subparagraph 
                (A) shall seek to protect park resources and 
                visitor experiences without compromising 
                aviation safety, and may--
                          (i) include provisions described in 
                        subparagraph (B) through (E) of 
                        subsection (b)(3);
                          (ii) include provisions to ensure the 
                        stability of, and compliance with, the 
                        provisions of the voluntary agreement; 
                        and
                          (iii) set forth a fee schedule for 
                        operating over the national park.
                  (C) Consultation.--Before entering into a 
                voluntary agreement described in subparagraph 
                (A), a national park shall consult with any 
                Indian tribe over whose tribal lands a 
                commercial air tour operator may conduct 
                commercial air tour operations pursuant to the 
                voluntary agreement.
                  (D) Review and approval by the secretary and 
                the administrator.--
                          (i) Review.--Before executing a 
                        voluntary agreement described in 
                        subparagraph (A), a national park shall 
                        submit the voluntary agreement to the 
                        Secretary and the Administrator for 
                        review and approval.
                          (ii) Approval.--Not later than 60 
                        days after receiving the agreement from 
                        the national park, the Secretary and 
                        the Administrator shall inform the 
                        national park of the determination of 
                        the Secretary and the Administrator 
                        regarding the approval of the 
                        agreement.
                  (E) Rescission of voluntary agreement.--
                          (i) By the secretary.--The Secretary 
                        may rescind a voluntary agreement 
                        described in subparagraph (A) if the 
                        Secretary determines that the agreement 
                        does not adequately protect park 
                        resources or visitor experiences.
                          (ii) By the administrator.--The 
                        Administrator may rescind a voluntary 
                        agreement described in subparagraph (A) 
                        if the Administrator determines that 
                        the agreement adversely affects 
                        aviation safety or the management of 
                        the national airspace system.
                          (iii) Effect of rescission.--If the 
                        Secretary or the Administrator rescinds 
                        a voluntary agreement described in 
                        subparagraph (A), the commercial air 
                        tour operator that was a party to the 
                        agreement shall operate under the 
                        requirements for interim operating 
                        authority of subsection (c) until an 
                        air tour management plan for the 
                        national park becomes effective.
  (b) Air Tour Management Plans.--
          (1) Establishment.--
                  (A) In general.--The Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, shall establish an air tour 
                management plan for any national park or tribal 
                land for which such a plan is not in effect 
                whenever a person applies for authority to 
                conduct a commercial air tour operation over 
                the park. The air tour management plan shall be 
                developed by means of a public process in 
                accordance with paragraph (4).
                  (B) Objective.--The objective of any air tour 
                management plan shall be to develop acceptable 
                and effective measures to mitigate or prevent 
                the significant adverse impacts, if any, of 
                commercial air tour operations upon the natural 
                and cultural resources, visitor experiences, 
                and tribal lands.
          (2) Environmental determination.--In establishing an 
        air tour management plan under this subsection, the 
        Administrator and the [Director] Secretary of the 
        Interior shall each sign the environmental decision 
        document required by section 102 of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332) which 
        may include a finding of no significant impact, an 
        environmental assessment, or an environmental impact 
        statement and the record of decision for the air tour 
        management plan.
          (3) Contents.--An air tour management plan for a 
        national park--
                  (A) may prohibit commercial air tour 
                operations over a national park in whole or in 
                part;
                  (B) may establish conditions for the conduct 
                of commercial air tour operations over a 
                national park, including commercial air tour 
                routes, maximum or minimum altitudes, time-of-
                day restrictions, restrictions for particular 
                events, maximum number of flights per unit of 
                time, intrusions on privacy on tribal lands, 
                and mitigation of noise, visual, or other 
                impacts;
                  (C) shall apply to all commercial air tour 
                operations over a national park that are also 
                within 1/2 mile outside the boundary of a 
                national park;
                  (D) shall include incentives (such as 
                preferred commercial air tour routes and 
                altitudes, relief from caps and curfews) for 
                the adoption of quiet aircraft technology by 
                commercial air tour operators conducting 
                commercial air tour operations over a national 
                park;
                  (E) shall provide for the initial allocation 
                of opportunities to conduct commercial air tour 
                operations over a national park if the plan 
                includes a limitation on the number of 
                commercial air tour operations for any time 
                period; and
                  (F) shall justify and document the need for 
                measures taken pursuant to subparagraphs (A) 
                through (E) and include such justifications in 
                the record of decision.
          (4) Procedure.--In establishing an air tour 
        management plan for a national park or tribal lands, 
        the Administrator and the [Director] Secretary of the 
        Interior shall--
                  (A) hold at least one public meeting with 
                interested parties to develop the air tour 
                management plan;
                  (B) publish the proposed plan in the Federal 
                Register for notice and comment and make copies 
                of the proposed plan available to the public;
                  (C) comply with the regulations set forth in 
                sections 1501.3 and 1501.5 through 1501.8 of 
                title 40, Code of Federal Regulations (for 
                purposes of complying with the regulations, the 
                Federal Aviation Administration shall be the 
                lead agency and the [National Park Service] 
                Department of the Interior is a cooperating 
                agency); and
                  (D) solicit the participation of any Indian 
                tribe whose tribal lands are, or may be, 
                overflown by aircraft involved in a commercial 
                air tour operation over the park or tribal 
                lands to which the plan applies, as a 
                cooperating agency under the regulations 
                referred to in subparagraph (C).
          (5) Judicial review.--An air tour management plan 
        developed under this subsection shall be subject to 
        judicial review.
          (6) Amendments.--The Administrator, in cooperation 
        with the [Director] Secretary of the Interior, may make 
        amendments to an air tour management plan. Any such 
        amendments shall be published in the Federal Register 
        for notice and comment. A request for amendment of an 
        air tour management plan shall be made in such form and 
        manner as the Administrator may prescribe.
  (c) Interim Operating Authority.--
          (1) In general.--Upon application for operating 
        authority, the Administrator shall grant interim 
        operating authority under this subsection to a 
        commercial air tour operator for commercial air tour 
        operations over a national park or tribal lands for 
        which the operator is an existing commercial air tour 
        operator.
          (2) Requirements and limitations.--Interim operating 
        authority granted under this subsection--
                  (A) shall provide annual authorization only 
                for the greater of--
                          (i) the number of flights used by the 
                        operator to provide the commercial air 
                        tour operations over a national park 
                        within the 12-month period prior to the 
                        date of the enactment of this section; 
                        or
                          (ii) the average number of flights 
                        per 12-month period used by the 
                        operator to provide such operations 
                        within the 36-month period prior to 
                        such date of enactment, and, for 
                        seasonal operations, the number of 
                        flights so used during the season or 
                        seasons covered by that 12-month 
                        period;
                  (B) may not provide for an increase in the 
                number of commercial air tour operations over a 
                national park conducted during any time period 
                by the commercial air tour operator above the 
                number that the air tour operator was 
                originally granted unless such an increase is 
                agreed to by the Administrator and the 
                [Director] Secretary of the Interior;
                  (C) shall be published in the Federal 
                Register to provide notice and opportunity for 
                comment;
                  (D) may be revoked by the Administrator for 
                cause;
                  (E) shall terminate 180 days after the date 
                on which an air tour management plan is 
                established for the park or tribal lands;
                  (F) shall promote protection of national park 
                resources, visitor experiences, and tribal 
                lands;
                  (G) shall promote safe commercial air tour 
                operations;
                  (H) shall promote the adoption of quiet 
                technology, as appropriate; and
                  [(I) shall allow for modifications of the 
                interim operating authority based on experience 
                if the modification improves protection of 
                national park resources and values and of 
                tribal lands.]
                  (I) may allow for modifications of the 
                interim operating authority without further 
                environmental process, if--
                          (i) adequate information on the 
                        existing and proposed operations of the 
                        commercial air tour operator is 
                        provided to the Administrator and the 
                        Secretary by the operator seeking 
                        operating authority;
                          (ii) the Administrator determines 
                        that the modifications would not 
                        adversely affect aviation safety or the 
                        management of the national airspace 
                        system; and
                          (iii) the Secretary agrees that the 
                        modifications would not adversely 
                        affect park resources and visitor 
                        experiences.
          (3) New entrant air tour operators.--
                  (A) In general.--The Administrator, in 
                cooperation with the [Director] Secretary of 
                the Interior, may grant interim operating 
                authority under this paragraph to an air tour 
                operator for a national park or tribal lands 
                for which that operator is a new entrant air 
                tour operator if the Administrator determines 
                the authority is necessary to ensure 
                competition in the provision of commercial air 
                tour operations over the park or tribal lands.
                  (B) Safety limitation.--The Administrator may 
                not grant interim operating authority under 
                subparagraph (A) if the Administrator 
                determines that it would create a safety 
                problem at the park or on the tribal lands, or 
                the [Director] Secretary of the Interior 
                determines that it would create a noise problem 
                at the park or on the tribal lands.
                  (C) ATMP limitation.--The Administrator may 
                grant interim operating authority under 
                subparagraph (A) of this paragraph only if the 
                air tour management plan for the park or tribal 
                lands to which the application relates has not 
                been developed within 24 months after the date 
                of the enactment of this section.
  (d) Exemptions.--This section shall not apply to--
          (1) the Grand Canyon National Park; or
          (2) tribal lands within or abutting the Grand Canyon 
        National Park.
  (e) Lake Mead.--This section shall not apply to any air tour 
operator while flying over or near the Lake Mead National 
Recreation Area, solely as a transportation route, to conduct 
an air tour over the Grand Canyon National Park.
  (f) Definitions.--In this section, the following definitions 
apply:
          (1) Commercial air tour operator.--The term 
        ``commercial air tour operator'' means any person who 
        conducts a commercial air tour operation over a 
        national park.
          (2) Existing commercial air tour operator.--The term 
        ``existing commercial air tour operator'' means a 
        commercial air tour operator that was actively engaged 
        in the business of providing commercial air tour 
        operations over a national park at any time during the 
        12-month period ending on the date of the enactment of 
        this section.
          (3) New entrant commercial air tour operator.--The 
        term ``new entrant commercial air tour operator'' means 
        a commercial air tour operator that--
                  (A) applies for operating authority as a 
                commercial air tour operator for a national 
                park or tribal lands; and
                  (B) has not engaged in the business of 
                providing commercial air tour operations over 
                the national park or tribal lands in the 12-
                month period preceding the application.
          (4) Commercial air tour operation over a national 
        park.--
                  (A) In general.--The term ``commercial air 
                tour operation over a national park'' means any 
                flight, conducted for compensation or hire in a 
                powered aircraft where a purpose of the flight 
                is sightseeing over a national park, within 1/2 
                mile outside the boundary of any national park 
                (except the Grand Canyon National Park), or 
                over tribal lands (except those within or 
                abutting the Grand Canyon National Park), 
                during which the aircraft flies--
                          (i) below a minimum altitude, 
                        determined by the Administrator in 
                        cooperation with the [Director] 
                        Secretary of the Interior, above ground 
                        level (except solely for purposes of 
                        takeoff or landing, or necessary for 
                        safe operation of an aircraft as 
                        determined under the rules and 
                        regulations of the Federal Aviation 
                        Administration requiring the pilot-in-
                        command to take action to ensure the 
                        safe operation of the aircraft); or
                          (ii) less than 1 mile laterally from 
                        any geographic feature within the park 
                        (unless more than 1/2 mile outside the 
                        boundary).
                  (B) Factors to consider.--In making a 
                determination of whether a flight is a 
                commercial air tour operation over a national 
                park for purposes of this section, the 
                Administrator may consider--
                          (i) whether there was a holding out 
                        to the public of willingness to conduct 
                        a sightseeing flight for compensation 
                        or hire;
                          (ii) whether a narrative that 
                        referred to areas or points of interest 
                        on the surface below the route of the 
                        flight was provided by the person 
                        offering the flight;
                          (iii) the area of operation;
                          (iv) the frequency of flights 
                        conducted by the person offering the 
                        flight;
                          (v) the route of flight;
                          (vi) the inclusion of sightseeing 
                        flights as part of any travel 
                        arrangement package offered by the 
                        person offering the flight;
                          (vii) whether the flight would have 
                        been canceled based on poor visibility 
                        of the surface below the route of the 
                        flight; and
                          (viii) any other factors that the 
                        Administrator and the [Director] 
                        Secretary of the Interior consider 
                        appropriate.
          (5) National park.--The term ``national park'' means 
        any unit of the National Park System.
          (6) Tribal lands.--The term ``tribal lands'' means 
        Indian country (as that term is defined in section 1151 
        of title 18) that is within or abutting a national 
        park.
          (7) Administrator.--The term ``Administrator'' means 
        the Administrator of the Federal Aviation 
        Administration.
          [(8) Director.--The term ``Director'' means the 
        Director of the National Park Service.]

           *       *       *       *       *       *       *

Sec. 40130. FAA access to criminal history records or databases systems

  (a) Access to Records or Databases Systems.--
          (1) Notwithstanding section 534 of title 28 and the 
        implementing regulations for such section (28 C.F.R. 
        part 20), the Administrator of the Federal Aviation 
        Administration is authorized to access a system of 
        documented criminal justice information maintained by 
        the Department of Justice or by a State but may do so 
        only for the purpose of carrying out its civil and 
        administrative responsibilities to protect the safety 
        and security of the National Airspace System or to 
        support the missions of the Department of Justice, the 
        Department of Homeland Security, and other law 
        enforcement agencies. The Administrator shall be 
        subject to the same conditions or procedures 
        established by the Department of Justice or State for 
        access to such an information system by other 
        governmental agencies with access to the system.
          (2) The Administrator may not use the access 
        authorized under paragraph (1) to conduct criminal 
        investigations.
  (b) Designated Employees.--The Administrator shall, by order, 
designate those employees of the Administration who shall carry 
out the authority described in subsection (a). Such designated 
employees may--
          (1) have access to and receive criminal history, 
        driver, vehicle, and other law enforcement information 
        contained in the law enforcement databases of the 
        Department of Justice, or of any jurisdiction in a 
        State in the same manner as a police officer employed 
        by a State or local authority of that State who is 
        certified or commissioned under the laws of that State;
          (2) use any radio, data link, or warning system of 
        the Federal Government and of any jurisdiction in a 
        State that provides information about wanted persons, 
        be-on-the-lookout notices, or warrant status or other 
        officer safety information to which a police officer 
        employed by a State or local authority in that State 
        who is certified or commission under the laws of that 
        State has access and in the same manner as such police 
        officer; or
          (3) receive Federal, State, or local government 
        communications with a police officer employed by a 
        State or local authority in that State in the same 
        manner as a police officer employed by a State or local 
        authority in that State who is commissioned under the 
        laws of that State.
  (c) System of Documented Criminal Justice Information 
Defined.--In this section the term ``system of documented 
criminal justice information'' means any law enforcement 
databases, systems, or communications containing information 
concerning identification, criminal history, arrests, 
convictions, arrest warrants, or wanted or missing persons, 
including the National Crime Information Center and its 
incorporated criminal history databases and the National Law 
Enforcement Telecommunications System.

                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A--AIR COMMERCE AND SAFETY

                    SUBPART II--ECONOMIC REGULATION

                  CHAPTER 417--OPERATIONS OF CARRIERS

Sec. 41718. Special rules for Ronald Reagan Washington National Airport

  (a) Beyond-Perimeter Exemptions.--The Secretary shall grant, 
by order, [24] 36 exemptions from the application of sections 
49104(a)(5), 49109, 49111(e), and 41714 of this title to air 
carriers to operate limited frequencies and aircraft on select 
routes between Ronald Reagan Washington National Airport and 
domestic hub airports and exemptions from the requirements of 
subparts K and S of part 93, Code of Federal Regulations, if 
the Secretary finds that the exemptions will--
          (1) provide air transportation with domestic network 
        benefits in areas beyond the perimeter described in 
        that section;
          (2) increase competition by new entrant air carriers 
        or in multiple markets;
          (3) not reduce travel options for communities served 
        by small hub airports and medium hub airports within 
        the perimeter described in section 49109; and
          (4) not result in meaningfully increased travel 
        delays.
  (b) Within-Perimeter Exemptions.--The Secretary shall grant, 
by order, [20] 28 exemptions from the requirements of sections 
49104(a)(5), 49111(e), and 41714 of this title and subparts K 
and S of part 93 of title 14, Code of Federal Regulations, to 
air carriers for providing air transportation to airports 
within the perimeter established for civil aircraft operations 
at Ronald Reagan Washington National Airport under section 
49109. The Secretary shall develop criteria for distributing 
slot exemptions for flights within the perimeter to such 
airports under this paragraph in a manner that promotes air 
transportation--
          (1) by new entrant air carriers and limited incumbent 
        air carriers;
          (2) to communities without existing nonstop air 
        transportation to Ronald Reagan Washington National 
        Airport;
          (3) to small communities;
          (4) that will provide competitive nonstop air 
        transportation on a monopoly nonstop route to Ronald 
        Reagan Washington National Airport; or
          (5) that will produce the maximum competitive 
        benefits, including low fares.
  (c) Limitations.--
          (1) Stage 3 aircraft required.--An exemption may not 
        be granted under this section with respect to any 
        aircraft that is not a Stage 3 aircraft (as defined by 
        the Secretary).
          (2) General exemptions.--The exemptions granted under 
        subsections (a) and (b) may not be for operations 
        between the hours of 10:00 p.m. and 7:00 a.m. and may 
        not increase the number of operations at Ronald Reagan 
        Washington National Airport in any 1-hour period during 
        the hours between 7:00 a.m. and 9:59 p.m. by more than 
        [3 operations.] 4 operations. Operations conducted by 
        new entrant and limited incumbent air carriers shall be 
        afforded a scheduling priority over operations 
        conducted by other air carriers granted exemptions 
        pursuant to section 41718 with the highest scheduling 
        priority afforded to beyond-perimeter operations 
        conducted by new entrant and limited incumbent air 
        carriers.
          (3) Allocation of within-perimeter exemptions.--Of 
        the exemptions granted under subsection (b)--
                  (A) without regard to the criteria contained 
                in subsection (b)(1), [six] 8 shall be for air 
                transportation to small hub airports and nonhub 
                airports;
                  (B) [ten] 12 shall be for air transportation 
                to medium hub and smaller airports; and
                  (C) [four] 6 shall be for air transportation 
                to airports without regard to their size.
          (4) Applicability to exemption no. 5133.--Nothing in 
        this section affects Exemption No. 5133, as from time-
        to-time amended and extended.
  (d) Application Procedures.--The Secretary shall establish 
procedures to ensure that all requests for exemptions under 
this section are granted or denied within 90 days after the 
date on which the request is made.
  (e) Applicability of Certain Laws.--Neither the request for, 
nor the granting of an exemption, under this section shall be 
considered for purposes of any Federal law a major Federal 
action significantly affecting the quality of the human 
environment.
  (f) Commuters Defined.--For purposes of aircraft operations 
at Ronald Reagan Washington National Airport under subpart K of 
part 93 of title 14, Code of Federal Regulations, the term 
`commuters' means aircraft operations using aircraft having a 
certificated maximum seating capacity of 76 or less.

           *       *       *       *       *       *       *

Sec. 41722. Delay reduction actions

  (a) Scheduling Reduction Meetings.--The Secretary of 
Transportation may request that air carriers meet with the 
Administrator of the Federal Aviation Administration to discuss 
flight reductions at severely congested airports to reduce 
overscheduling and flight delays during hours of peak operation 
if--
          (1) the Administrator determines that it is necessary 
        to convene such a meeting; and
          (2) the Secretary determines that the meeting is 
        necessary to meet a serious transportation need or 
        achieve an important public benefit.
  (b) Meeting Conditions.--Any meeting under subsection (a)--
          (1) shall be chaired by the Administrator;
          (2) shall be open to all scheduled air carriers; and
          (3) shall be limited to discussions involving the 
        airports and time periods described in the 
        Administrator's determination.
  (c) Flight Reduction Targets.--Before any such meeting is 
held, the Administrator shall establish flight reduction 
targets for the meeting and notify the attending air carriers 
of those targets not less than 48 hours before the meeting.
  (d) Delay Reduction Offers.--An air carrier attending the 
meeting shall make any offer to meet a flight reduction target 
to the Administrator rather than to another carrier.
  (e) Transcript.--The Administrator shall ensure that a 
transcript of the meeting is kept and made available to the 
public not later than 3 business days after the conclusion of 
the meeting.
  (f) Chronically Delayed Flights.--
          (1) Publication of list of flights.--An air carrier 
        holding a certificate issued under section 41102 that 
        conducts scheduled passenger air transportation shall 
        publish and update monthly on the Internet website of 
        the air carrier, or provide on request, a list of 
        chronically delayed flights operated by the air 
        carrier.
          (2) Disclosure to customers when purchasing 
        tickets.--An air carrier shall disclose the following 
        information prominently to an individual before that 
        individual books transportation on the air carrier's 
        Internet website for any flight for which data is 
        reported to the Department of Transportation under part 
        234 of title 14, Code of Federal Regulations, and for 
        which the air carrier has primary responsibility for 
        inventory control:
                  (A) The on-time performance for the flight if 
                it is a chronically delayed flight.
                  (B) The cancellation rate for the flight if 
                it is a chronically canceled flight.
          (3) Chronically delayed; chronically canceled.--The 
        Secretary of Transportation shall define the terms 
        ``chronically delayed flight'' and `chronically 
        canceled flight' for purposes of this subsection.

           *       *       *       *       *       *       *

Sec. 41737. Compensation guidelines, limitations, and claims

  (a) Compensation Guidelines.--(1) The Secretary of 
Transportation shall prescribe guidelines governing the rate of 
compensation payable under this subchapter. The guidelines 
shall be used to determine the reasonable amount of 
compensation required to ensure the continuation of air service 
or air transportation under this subchapter. The guidelines 
shall--
          (A) provide for a reduction in compensation when an 
        air carrier does not provide service or transportation 
        agreed to be provided;
          (B) consider amounts needed by an air carrier to 
        promote public use of the service or transportation for 
        which compensation is being paid; [and]
          (C) include expense elements based on representative 
        costs of air carriers providing scheduled air 
        transportation of passengers, property, and mail on 
        aircraft of the type the Secretary decides is 
        appropriate for providing the service or transportation 
        for which compensation is being [provided.] provided;
          (D) include provisions under which the Secretary may 
        encourage carriers to improve air service to small and 
        rural communities by incorporating financial incentives 
        in essential air service contracts based on specified 
        performance goals; and
          (E) include provisions under which the Secretary may 
        execute long-term essential air service contracts to 
        encourage carriers to provide air service to small and 
        rural communities where it would be in the public 
        interest to do so.
  (2) Promotional amounts described in paragraph (1)(B) of this 
subsection shall be a special, segregated element of the 
compensation provided to a carrier under this subchapter.
  (b) Required Finding.--The Secretary may pay compensation to 
an air carrier for providing air service or air transportation 
under this subchapter only if the Secretary finds the carrier 
is able to provide the service or transportation in a reliable 
way.
  (c) Claims.--Not later than 15 days after receiving a written 
claim from an air carrier for compensation under this 
subchapter, the Secretary shall--
          (1) pay or deny the United States Government's share 
        of a claim; and
          (2) if denying the claim, notify the carrier of the 
        denial and the reasons for the denial.
  (d) Authority To Make Agreements and Incur Obligations.--(1) 
The Secretary may make agreements and incur obligations from 
the Airport and Airway Trust Fund established under section 
9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502) to 
pay compensation under this subchapter. An agreement by the 
Secretary under this subsection is a contractual obligation of 
the Government to pay the Government's share of the 
compensation.
  (2) Not more than $38,600,000 is available to the Secretary 
out of the Fund for each of the fiscal years ending September 
30, 1993-1998, to incur obligations under this section. Amounts 
made available under this section remain available until 
expended.
  (e) Adjustments to Account for Significantly Increased 
Costs.--
          (1) In general.--If the Secretary determines that air 
        carriers are experiencing significantly increased costs 
        in providing air service or air transportation for 
        which compensation is being paid under this subchapter, 
        the Secretary may increase the rates of compensation 
        payable under this subchapter without regard to any 
        agreement or requirement relating to the renegotiation 
        of contracts or any notice requirement under section 
        41734.
          (2) Readjustment if costs subsequently decline.--If 
        an adjustment is made under paragraph (1), and total 
        unit costs subsequently decrease to at least the total 
        unit cost reflected in the compensation rate, then the 
        Secretary may reverse the adjustment previously made 
        under paragraph (1) without regard to any agreement or 
        requirement relating to the renegotiation of contracts 
        or any notice requirement under section 41734.
          (3) Significantly increased costs defined.--In this 
        subsection, the term ``significantly increased costs'' 
        means a total unit cost increase (but not increases in 
        individual unit costs) of 10 percent or more in 
        relation to the total unit cost reflected in the 
        compensation rate, based on the carrier's internal 
        audit of its financial statements if such cost increase 
        is incurred for a period of at least 2 consecutive 
        months.

           *       *       *       *       *       *       *

Sec. 41742. Essential air service authorization

  (a) In General.--
          (1) Authorization.--Out of the amounts received by 
        the Federal Aviation Administration credited to the 
        account established under section 45303 of this title 
        or otherwise provided to the Administration, the sum of 
        $50,000,000 is authorized and shall be made available 
        immediately for obligation and expenditure to carry out 
        the essential air service program under this subchapter 
        for each fiscal year. Any amount in excess of 
        $50,000,000 credited for any fiscal year to the account 
        established under section 45303(c) shall be obligated 
        for programs under section 406 of the Vision 100--
        Century of Aviation Reauthorization Act (49 U.S.C. 
        40101 note) and section 41745 of this title. Amounts 
        appropriated pursuant to this section shall remain 
        available until expended.
          (2) Additional funds.--In addition to amounts 
        authorized under paragraph (1), there is authorized to 
        be appropriated [$77,000,000] $83,000,000 for each 
        fiscal year to carry out the essential air service 
        program under this subchapter of which not more than 
        $12,000,000 per fiscal year may be used for the 
        marketing incentive program for communities and for 
        State marketing assistance.
          (3) Authorization for additional employees.--In 
        addition to amounts authorized under paragraphs (1) and 
        (2), there are authorized to be appropriated such sums 
        as may be necessary for the Secretary of Transportation 
        to hire and employ 4 additional employees for the 
        office responsible for carrying out the essential air 
        service program.
  (b) Funding for Small Community Air Service.--Notwithstanding 
any other provision of law, moneys credited to the account 
established under section 45303(a) of this title, including the 
funds derived from fees imposed under the authority contained 
in section 45301(a) of this title, shall be used to carry out 
the essential air service program under this subchapter. 
Notwithstanding section 47114(g) of this title, any amounts 
from those fees that are not obligated or expended at the end 
of the fiscal year for the purpose of funding the essential air 
service program under this subchapter shall be made available 
to the Administration for use in improving rural air safety 
under subchapter I of chapter 471 of this title and shall be 
used exclusively for projects at rural airports under this 
subchapter.

Sec. 41743. Airports not receiving sufficient service

  (a) Small Community Air Service Development Program.--The 
Secretary of Transportation shall establish a program that 
meets the requirements of this section for improving air 
carrier service to airports not receiving sufficient air 
carrier service.
  (b) Application Required.--In order to participate in the 
program established under subsection (a), a community or 
consortium of communities shall submit an application to the 
Secretary in such form, at such time, and containing such 
information as the Secretary may require, including--
          (1) an assessment of the need of the community or 
        consortium for access, or improved access, to the 
        national air transportation system; and
          (2) an analysis of the application of the criteria in 
        subsection (c) to that community or consortium.
  (c) Criteria for Participation.--In selecting communities, or 
consortia of communities, for participation in the program 
established under subsection (a), the Secretary shall apply the 
following criteria:
          (1) Size.--For calendar year 1997, the airport 
        serving the community or consortium was not larger than 
        a small hub airport, and--
                  (A) had insufficient air carrier service; or
                  (B) had unreasonably high air fares.
          (2) Characteristics.--The airport presents 
        characteristics, such as geographic diversity or unique 
        circumstances, that will demonstrate the need for, and 
        feasibility of, the program established under 
        subsection (a).
          (3) State limit.--Not more than 4 communities or 
        consortia of communities, or a combination thereof, 
        from the same State may be selected to participate in 
        the program in any fiscal year.
          (4) Overall limit.--No more than 40 communities or 
        consortia of communities, or a combination thereof, may 
        be selected to participate in the program in each year 
        for which funds are appropriated for the program. No 
        community, consortia of communities, nor combination 
        thereof may participate in the program in support of 
        the same project more than once, but any community, 
        consortia of communities, or combination thereof may 
        apply, subsequent to such participation, to participate 
        in the program in support of a different project.
          (5) Priorities.--The Secretary shall give priority to 
        communities or consortia of communities where--
                  (A) air fares are higher than the average air 
                fares for all communities;
                  (B) the community or consortium will provide 
                a portion of the cost of the activity to be 
                assisted under the program from local sources 
                other than airport revenues;
                  (C) the community or consortium has 
                established, or will establish, a public-
                private partnership to facilitate air carrier 
                service to the public;
                  (D) the assistance will provide material 
                benefits to a broad segment of the travelling 
                public, including business, educational 
                institutions, and other enterprises, whose 
                access to the national air transportation 
                system is limited; [and]
                  (E) the assistance will be used in a timely 
                [fashion.] fashion; and
                  (F) multiple communities cooperate to submit 
                a region or multistate application to improve 
                air service.
  (d) Types of Assistance.--The Secretary may use amounts made 
available under this section--
          (1) to provide assistance to an air carrier to 
        subsidize service to and from an underserved airport 
        for a period not to exceed 3 years;
          (2) to provide assistance to an underserved airport 
        to obtain service to and from the underserved airport; 
        and
          (3) to provide assistance to an underserved airport 
        to implement such other measures as the Secretary, in 
        consultation with such airport, considers appropriate 
        to improve air service both in terms of the cost of 
        such service to consumers and the availability of such 
        service, including improving air service through 
        marketing and promotion of air service and enhanced 
        utilization of airport facilities.
  (e) Authority To Make Agreements.--
          (1) In general.--The Secretary may make agreements to 
        provide assistance under this section.
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary 
        $20,000,000 for fiscal year 2001, $27,500,000 for each 
        of fiscal years 2002 and 2003, and $35,000,000 for each 
        of fiscal years 2004 through [2008] 2011 to carry out 
        this section. Such sums shall remain available until 
        expended.
  (f) Additional Action.--Under the program established under 
subsection (a), the Secretary shall work with air carriers 
providing service to participating communities and major air 
carriers (as defined in section 41716(a)(2)) serving large hub 
airports to facilitate joint-fare arrangements consistent with 
normal industry practice.
  (g) Designation of Responsible Official.--The Secretary shall 
designate an employee of the Department of Transportation--
          (1) to function as a facilitator between small 
        communities and air carriers;
          (2) to carry out this section;
          (3) to ensure that the Bureau of Transportation 
        Statistics collects data on passenger information to 
        assess the service needs of small communities;
          (4) to work with and coordinate efforts with other 
        Federal, State, and local agencies to increase the 
        viability of service to small communities and the 
        creation of aviation development zones; and
          (5) to provide policy recommendations to the 
        Secretary and Congress that will ensure that small 
        communities have access to quality, affordable air 
        transportation services.
  (h) Air Service Development Zone.--The Secretary shall 
designate an airport in the program as an Air Service 
Development Zone and work with the community or consortium on 
means to attract business to the area surrounding the airport, 
to develop land use options for the area, and provide data, 
working with the Department of Commerce and other agencies.

           *       *       *       *       *       *       *

Sec. 41745. Community and regional choice programs

  (a) Alternate Essential Air Service Pilot Program.--
          (1) Establishment.--The Secretary of Transportation 
        shall establish an alternate essential air service 
        pilot program in accordance with the requirements of 
        this section.
          (2) Assistance to eligible places.--In carrying out 
        the program, the Secretary, instead of paying 
        compensation to an air carrier to provide essential air 
        service to an eligible place, may provide assistance 
        directly to a unit of local government having 
        jurisdiction over the eligible place or a State within 
        the boundaries of which the eligible place is located.
          (3) Use of assistance.--A unit of local government or 
        State receiving assistance for an eligible place under 
        the program may use the assistance for any of the 
        following purposes:
                  (A) To provide assistance to air carriers 
                that will use smaller equipment to provide the 
                service and to consider increasing the 
                frequency of service using such smaller 
                equipment if the Secretary determines that 
                passenger safety would not be compromised by 
                the use of such smaller equipment and if the 
                State or unit of local government waives the 
                minimum service requirements under section 
                41732(b).
                  (B) To provide assistance to an air carrier 
                to provide on-demand air taxi service to and 
                from the eligible place.
                  (C) To provide assistance to a person to 
                provide scheduled or on-demand surface 
                transportation to and from the eligible place 
                and an airport in another place.
                  (D) In combination with other units of local 
                government in the same region, to provide 
                transportation services to and from all the 
                eligible places in that region at an airport or 
                other transportation center that can serve all 
                the eligible places in that region.
                  (E) To purchase aircraft to provide 
                transportation to and from the eligible place 
                or to purchase a fractional share in an 
                aircraft to provide such transportation after 
                the effective date of a rule the Secretary 
                issues relating to fractional ownership.
                  (F) To pay for other transportation or 
                related services that the Secretary may permit.
  (b) Community Flexibility Pilot Program.--
          (1) In general.--The Secretary shall establish a 
        pilot program for not more than 10 eligible places or 
        consortia of units of local government.
          (2) Election.--Under the program, the sponsor of an 
        airport serving an eligible place may elect to forego 
        any essential air service for which compensation is 
        being provided under this subchapter for a 10-year 
        period in exchange for a grant from the Secretary equal 
        in value to twice the compensation paid to provide such 
        service in the most recent 12-month period.
          (3) Grant.--Notwithstanding any other provision of 
        law, the Secretary shall make a grant to each airport 
        sponsor participating in the program for use on any 
        project that--
                  (A) is eligible for assistance under chapter 
                471 and complies with the requirements of that 
                chapter;
                  (B) is located on the airport property; or
                  (C) will improve airport facilities in a way 
                that would make such facilities more usable for 
                general aviation.
  (c) Conversion of Lost Eligibility Airports.--
          (1) In general.--The Secretary shall establish a 
        program to provide general aviation conversion funding 
        for airports serving eligible places that the Secretary 
        has determined no longer qualify as eligible places.
          (2) Grants.--A grant under this subsection--
                  (A) may not exceed twice the compensation 
                paid to provide essential air service to the 
                airport in the fiscal year preceding the fiscal 
                year in which the Secretary determines that the 
                place served by the airport is no longer an 
                eligible place; and
                  (B) may be used--
                          (i) for airport development (as 
                        defined in section 47102(3)) that will 
                        enhance general aviation capacity at 
                        the airport;
                          (ii) to defray operating expenses, if 
                        such use is approved by the Secretary; 
                        or
                          (iii) to develop innovative air 
                        service options, such as on-demand or 
                        air taxi operations, if such use is 
                        approved by the Secretary.
          (3) AIP requirements.--An airport sponsor that uses 
        funds provided under this subsection for an airport 
        development project shall comply with the requirements 
        of subchapter I of chapter 471 applicable to airport 
        development projects funded under that subchapter with 
        respect to the project funded under this subsection.
          (4) Limitation.--The sponsor of an airport receiving 
        funding under this subsection is not eligible for 
        funding under section 41736.
  [(c)] (d) Fractionally Owned Aircraft.--After the effective 
date of the rule referred to in subsection (a)(3)(E), only 
those operating rules that relate to an aircraft that is 
fractionally owned apply when an aircraft described in 
subsection (a)(3)(E) is used to provide transportation 
described in subsection (a)(3)(E).
  [(d)] (e) Applications.--
          (1) In general.--An entity seeking to participate in 
        a program under this section shall submit to the 
        Secretary an application in such form and containing 
        such information as the Secretary may require.
          (2) Required information.--At a minimum, the 
        application shall include--
                  (A) a statement of the amount of compensation 
                or assistance required; and
                  (B) a description of how the compensation or 
                assistance will be used.
  [(e)] (f) Participation Requirements.--[An eligible place] 
Neither an eligible place, nor a place to which subsection (c) 
applies, for which compensation or assistance is provided under 
this section in a fiscal year shall [not] be eligible in that 
fiscal year for the essential air service that it would 
otherwise be entitled to under this subchapter.
  [(f)] (g) Subsequent Participation.--A unit of local 
government participating in the program under this subsection 
(a) in a fiscal year shall not be prohibited from participating 
in the basic essential air service program under this 
subchapter in a subsequent fiscal year if such unit is 
otherwise eligible to participate in such program.
  [(g)] (h) Funding.--Amounts appropriated or otherwise made 
available to carry out the essential air service program under 
this subchapter shall be available to carry out this section.

                SUBCHAPTER IV--AIRLINE CUSTOMER SERVICE

Sec.  41781. AIRLINE CONTINGENCY SERVICE REQUIREMENTS.

  (a) In General.--Not later than 60 days after the date of the 
enactment of the Aviation Investment and Modernization Act of 
2007, each air carrier shall institute the following practices:
          (1) Provision of food and water.--In any case in 
        which departure of a flight of an air carrier is 
        substantially delayed, such air carrier shall provide--
                  (A) adequate food and potable water to 
                passengers on such flight during such delay; 
                and
                  (B) adequate restroom facilities to 
                passengers on such flight during such delay.
          (2) Right to deplane.--
                  (A) In general.--An air carrier shall develop 
                a plan, that incorporates medical 
                considerations, to ensure that passengers are 
                provided a clear timeframe under which they 
                will be permitted to deplane a delayed 
                aircraft. The air carrier shall provide a copy 
                of the plan to the Secretary of Transportation, 
                who shall make the plan available to the 
                public. In the absence of such a plan, except 
                as provided in subparagraph (B), if more than 3 
                hours after passengers have boarded an air 
                carrier and the air carrier doors are closed, 
                the air carrier has not departed, the air 
                carrier shall provide passengers with the 
                option to deplane safely before the departure 
                of such air carrier. Such option shall be 
                provided to passengers not less often than once 
                during each 3-hour period that the plane 
                remains on the ground.
                  (B) Exceptions.--Subparagraph (A) shall not 
                apply--
                          (i) if the pilot of such flight 
                        reasonably determines that such flight 
                        will depart not later than 30 minutes 
                        after the 3 hour delay; or
                          (ii) if the pilot of such flight 
                        reasonably determines that permitting a 
                        passenger to deplane would jeopardize 
                        passenger safety or security.
                  (C) Application to diverted flights.--This 
                section applies to aircraft without regard to 
                whether they have been diverted to an airport 
                other than the original destination.
  (b) Posting Consumer Rights on Website.--An air carrier 
holding a certificate issued under section 41102 that conducts 
scheduled passenger air transportation shall publish 
conspicuously and update monthly on the Internet website of the 
air carrier a statement of the air carrier's customer service 
policy and of air carrier customers' consumer rights under 
Federal and State law.
  (c) Air Carrier.--In this section the term ``air carrier'' 
means an air carrier holding a certificate issued under section 
41102 that conducts scheduled passenger air transportation.

                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A--AIR COMMERCE AND SAFETY

                          SUBPART III--SAFETY

                         CHAPTER 443--INSURANCE

Sec. 44303. Coverage

  (a) In General.--The Secretary of Transportation may provide 
insurance and reinsurance, or reimburse insurance costs, as 
authorized under section 44302 of this title for the following:
          (1) an American aircraft or foreign-flag aircraft 
        engaged in aircraft operations the President decides 
        are necessary in the interest of air commerce or 
        national security or to carry out the foreign policy of 
        the United States Government.
          (2) property transported or to be transported on 
        aircraft referred to in clause (1) of this section, 
        including--
                  (A) shipments by express or registered mail;
                  (B) property owned by citizens or residents 
                of the United States;
                  (C) property--
                          (i) imported to, or exported from, 
                        the United States; and
                          (ii) bought or sold by a citizen or 
                        resident of the United States under a 
                        contract putting the risk of loss or 
                        obligation to provide insurance against 
                        risk of loss on the citizen or 
                        resident; and
                  (D) property transported between--
                          (i) a place in a State or the 
                        District of Columbia and a place in a 
                        territory or possession of the United 
                        States;
                          (ii) a place in a territory or 
                        possession of the United States and a 
                        place in another territory or 
                        possession of the United States; or
                          (iii) 2 places in the same territory 
                        or possession of the United States.
          (3) the personal effects and baggage of officers and 
        members of the crew of an aircraft referred to in 
        clause (1) of this section and of other individuals 
        employed or transported on that aircraft.
          (4) officers and members of the crew of an aircraft 
        referred to in clause (1) of this section and other 
        individuals employed or transported on that aircraft 
        against loss of life, injury, or detention.
          (5) statutory or contractual obligations or other 
        liabilities, customarily covered by insurance, of an 
        aircraft referred to in clause (1) of this section or 
        of the owner or operator of that aircraft.
          (6) loss or damage of an aircraft manufacturer 
        resulting from operation of an aircraft by an air 
        carrier and involving war or terrorism.
  (b) Air Carrier Liability for Third Party Claims Arising Out 
of Acts of Terrorism.--For acts of terrorism committed on or to 
an air carrier during the period beginning on September 22, 
2001, and ending on [December 31, 2006,] December 31, 2012, the 
Secretary may certify that the air carrier was a victim of an 
act of terrorism and in the Secretary's judgment, based on the 
Secretary's analysis and conclusions regarding the facts and 
circumstances of each case, shall not be responsible for losses 
suffered by third parties (as referred to in section 
205.5(b)(1) of title 14, Code of Federal Regulations) that 
exceed $100,000,000, in the aggregate, for all claims by such 
parties arising out of such act. If the Secretary so certifies, 
the air carrier shall not be liable for an amount that exceeds 
$100,000,000, in the aggregate, for all claims by such parties 
arising out of such act, and the Government shall be 
responsible for any liability above such amount. No punitive 
damages may be awarded against an air carrier (or the 
Government taking responsibility for an air carrier under this 
subsection) under a cause of action arising out of such act. 
The Secretary may extend the provisions of this subsection to 
an aircraft manufacturer (as defined in section 44301) of the 
aircraft of the air carrier involved.

           *       *       *       *       *       *       *

Sec. 44310. Ending effective date

  The authority of the Secretary of Transportation to provide 
insurance and reinsurance under this chapter is not effective 
after [March 30, 2008.] October 1, 2017.

                    PART A--AIR COMMERCE AND SAFETY

                          SUBPART III--SAFETY

            CHAPTER 445--FACILITIES, PERSONNEL, AND RESEARCH

Sec. 44501. Plans and policy

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

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Sec. 44504. Improved aircraft, aircraft engines, propellers, and 
                    appliances

  (a) Developmental Work and Service Testing.--The 
Administrator of the Federal Aviation Administration may 
conduct or supervise developmental work and service testing to 
improve unmanned and manned aircraft, aircraft engines, 
propellers, and appliances.
  (b) Research.--The Administrator shall conduct or supervise 
research--
          (1) to develop technologies and analyze information 
        to predict the effects of aircraft design, maintenance, 
        testing, wear, and fatigue on the life of aircraft, 
        including nonstructural aircraft systems, and air 
        safety;
          (2) to develop methods of analyzing and improving 
        aircraft maintenance technology and practices, 
        including nondestructive evaluation of aircraft 
        structures;
          (3) to assess the fire and smoke resistance of 
        aircraft material;
          (4) to develop improved fire and smoke resistant 
        material for aircraft interiors;
          (5) to develop and improve fire and smoke containment 
        systems for inflight aircraft fires;
          (6) to develop advanced aircraft fuels with low 
        flammability and technologies that will contain 
        aircraft fuels to minimize post-crash fire hazards; 
        [and]
          (7) to develop technologies and methods to assess the 
        risk of and prevent defects, failures, and malfunctions 
        of products, parts, processes, and articles 
        manufactured for use in aircraft, aircraft engines, 
        propellers, and appliances that could result in a 
        catastrophic failure of an [aircraft.] aircraft; and
          (8) in conjunction with other Federal agencies as 
        appropriate, to develop technologies and methods to 
        assess the risk of and prevent defects, failures, and 
        malfunctions of products, parts, and processes, for use 
        in all classes of unmanned aerial systems that could 
        result in a catastrophic failure.
  (c) Authority To Buy Items Offering Special Advantages.--In 
carrying out this section, the Administrator, by negotiation or 
otherwise, may buy or exchange experimental aircraft, aircraft 
engines, propellers, and appliances that the Administrator 
decides may offer special advantages to aeronautics.

Sec. 44505. Systems, procedures, facilities, and devices

  (a) General Requirements.--(1) The Administrator of the 
Federal Aviation Administration shall--
          (A) develop, alter, test, and evaluate systems, 
        procedures, facilities, and devices, and define their 
        performance characteristics, to meet the needs for safe 
        and efficient navigation and traffic control of civil 
        and military aviation, except for needs of the armed 
        forces that are peculiar to air warfare and primarily 
        of military concern; and
          (B) select systems, procedures, facilities, and 
        devices that will best serve those needs and promote 
        maximum coordination of air traffic control and air 
        defense systems.
  (2) The Administrator may make contracts to carry out this 
subsection without regard to section 3324(a) and (b) of title 
31.
  (3) When a substantial question exists under paragraph (1) of 
this subsection about whether a matter is of primary concern to 
the armed forces, the Administrator shall decide whether the 
Administrator or the Secretary of the appropriate military 
department has responsibility. The Administrator shall be given 
technical information related to each research and development 
project of the armed forces that potentially applies to, or 
potentially conflicts with, the common system to ensure that 
potential application to the common system is considered 
properly and that potential conflicts with the system are 
eliminated.
  (b) Research on Human Factors and Simulation Models.--The 
Administrator shall conduct or supervise research--
          (1) to develop a better understanding of the 
        relationship between human factors and aviation 
        accidents and between human factors and air safety;
          (2) to enhance air traffic controller, mechanic, and 
        flight crew performance;
          (3) to develop a human-factor analysis of the hazards 
        associated with new technologies to be used by air 
        traffic controllers, mechanics, and flight crews;
          (4) to identify innovative and effective corrective 
        measures for human errors that adversely affect air 
        safety; [and]
          (5) to develop dynamic simulation models of the air 
        traffic control system and airport design and operating 
        procedures that will provide analytical technology--
                  (A) to predict airport and air traffic 
                control safety and capacity problems;
                  (B) to evaluate planned research projects; 
                and
                  (C) to test proposed revisions in airport and 
                air traffic control operations [programs.] 
                programs;
          (6) to develop a better understanding of the 
        relationship between human factors and unmanned aerial 
        systems air safety; and
          (7) to develop dynamic simulation models of 
        integrating all classes of unmanned aerial systems into 
        the National Air Space.
  (c) Research on Developing and Maintaining a Safe and 
Efficient System.--The Administrator shall conduct or supervise 
research on--
          (1) airspace and airport planning and design;
          (2) airport capacity enhancement techniques;
          (3) human performance in the air transportation 
        environment;
          (4) aviation safety and security;
          (5) the supply of trained air transportation 
        personnel, including pilots and mechanics; and
          (6) other aviation issues related to developing and 
        maintaining a safe and efficient air transportation 
        system.
  (d) Cooperative Agreements.--The Administrator may enter into 
cooperative agreements on a cost-shared basis with Federal and 
non-Federal entities that the Administrator may select in order 
to conduct, encourage, and promote aviation research, 
engineering, and development, including the development of 
prototypes and demonstration models.

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Sec. 44511. Aviation research grants

  (a) General Authority.--The Administrator of the Federal 
Aviation Administration may make grants to institutions of 
higher education and nonprofit research organizations to 
conduct aviation research in areas the Administrator considers 
necessary for the long-term growth of civil aviation.
  (b) Applications.--An institution of higher education or 
nonprofit research organization interested in receiving a grant 
under this section may submit an application to the 
Administrator. The application must be in the form and contain 
the information the Administrator requires.
  (c) Solicitation, Review, and Evaluation Process.--The 
Administrator shall establish a solicitation, review, and 
evaluation process that ensures--
          (1) providing grants under this section for proposals 
        having adequate merit and relevancy to the mission of 
        the Administration;
          (2) a fair geographical distribution of grants under 
        this section; and
          (3) the inclusion of historically black institutions 
        of higher education and other minority nonprofit 
        research organizations for grant consideration under 
        this section.
  (d) Records.--Each person receiving a grant under this 
section shall maintain records that the Administrator requires 
as being necessary to facilitate an effective audit and 
evaluation of the use of money provided under the grant.
  (e) Annual Report.--The Administrator shall submit an annual 
report to the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate on carrying out this section.
  (f) Airport Cooperative Research Program.--
          (1) Establishment.--The Secretary of Transportation 
        shall [establish a 4-year pilot] maintain an airport 
        cooperative research program to--
                  (A) identify problems that are shared by 
                airport operating agencies and can be solved 
                through applied research but that are not being 
                adequately addressed by existing Federal 
                research programs; and
                  (B) fund research to address those problems.
          (2) Governance.--The Secretary of Transportation 
        shall appoint an independent governing board for the 
        research program established under this subsection. The 
        governing board shall be appointed from candidates 
        nominated by national associations representing public 
        airport operating agencies, airport executives, State 
        aviation officials, and the scheduled airlines, and 
        shall include representatives of appropriate Federal 
        agencies. Section 14 of the Federal Advisory Committee 
        Act shall not apply to the governing board.
          (3) Implementation.--The Secretary of Transportation 
        shall enter into an arrangement with the National 
        Academy of Sciences to provide staff support to the 
        governing board established under paragraph (2) and to 
        carry out projects proposed by the governing board that 
        the Secretary considers appropriate.
          (4) Report.--Not later than 6 months after the 
        expiration of the pilot program under this subsection, 
        the Secretary shall transmit to the Congress a report 
        on the [program, including recommendations as to the 
        need for establishing a permanent airport cooperative 
        research program.] program.

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Sec. 44518. Pilot program for airport takeover of terminal area air 
                    navigation equipment

  (a) In General.--Subject to the requirements of this section, 
the Administrator of the Federal Aviation Administrator may 
carry out a pilot program under which the Administrator may 
transfer ownership, operating, and maintenance responsibilities 
for airport terminal area air navigation equipment to sponsors 
of not more than 10 airports.
  (b) Terms and Conditions of Transfer for Airport Sponsors.--
As a condition of participating in this pilot program the 
sponsor shall agree that the sponsor will--
          (1) operate and maintain all of the air navigation 
        equipment that is subject to this section at the 
        airport in accordance with standards established by the 
        Administrator;
          (2) permit the Administrator or a person designated 
        by the Administrator to conduct inspections of the air 
        navigation equipment under a schedule established by 
        the Administrator; and
          (3) acquire and maintain new air navigation equipment 
        as needed to replace facilities that have to be 
        replaced at the end of their useful life or to meet new 
        standards established by the Administrator.
  (c) Terms and Conditions of Transfer for the Administrator.--
When the Administrator approves a sponsor's participation in 
this pilot program, the Administrator shall--
          (1) transfer, at no cost to the sponsor, the title 
        and ownership of the air navigation equipment 
        facilities approved for transfer under this program; 
        and
          (2) transfer, at no cost to the sponsor, the 
        government's property interest in the land on which the 
        air navigation facilities transferred under paragraph 
        (1) are located.
  (d) Treatment of Airport Costs Under Pilot Program.--Upon 
transfer by the Administrator, any costs incurred by the 
airport for ownership and maintenance of the equipment 
transferred under this section shall be considered a cost of 
providing airfield facilities and services under standards and 
guidelines issued by the Secretary under section 47129(b)(2) 
and may be recovered in rates and charges assessed for use of 
the airfield.
  (e) Definitions.--In this section:
          (1) Sponsor.--The term ``sponsor'' has the meaning 
        given that term in section 40102.
          (2) Terminal area air navigation equipment.--The term 
        ``terminal area air navigation equipment'' means an air 
        navigation facility under section 40102, other than 
        buildings used for air traffic control functions, that 
        exists to provide approach and landing guidance to 
        aircraft.
  (f) Guidelines.--The Administrator shall issue advisory 
guidelines on the implementation of the program. The guidelines 
shall not be subject to administrative rulemaking requirements 
under subchapter II of chapter 5 of title 5.

Sec. 44519. ADS-B support pilot program

  (a) In General.--The Secretary may carry out a pilot program 
to support non-Federal acquisition of National Airspace System 
compliant Automatic Dependent Surveillance-Broadcast (ADS-B) 
ground stations if--
          (1) the Secretary determines that acquisition of the 
        ground stations benefits the improvement of safety or 
        capacity in the National Airspace System;
          (2) the ground stations provide the required transmit 
        and receive data formats consistent with the National 
        Airspace System architecture at the appropriate service 
        delivery point; and
          (3) the ground stations acquired under this program 
        are supplemental to ground stations established under 
        programs administered by the Administrator of the 
        Federal Aviation Administration.
  (b) Project Grants.--
          (1) For purposes of carrying out the pilot program 
        and notwithstanding the requirements of section 
        47114(d), the Secretary may make a project grant out of 
        funds apportioned under section 47114(d)(2) to not more 
        than 10 eligible sponsors to acquire and install ADS-B 
        ground stations in order to serve any public-use 
        airport.
          (2) The Secretary shall establish procurement 
        procedures applicable to grants issued under this 
        section. The procedures shall permit the sponsor to 
        carry out the project using Federal Aviation 
        Administration contracts. The procedures established by 
        the Secretary may provide for the direct reimbursement 
        (including administrative costs) of the Administrator 
        by the sponsor using grant funds under this section, 
        for the ordering of such equipment and its 
        installation, or for the direct ordering of such 
        equipment and its installation by the sponsor, using 
        such grant funds, from the suppliers with which the 
        Administrator has contracted.
  (c) Matching Requirement.--The amount of a grant to an 
eligible sponsor under subsection (b) may not exceed 90 percent 
of the costs of the acquisition and installation of the ground 
support equipment.
  (d) Definitions.--In this section:
          (1) ADS-B ground station.--The term ``ADS-B ground 
        station'' means electronic equipment that provides for 
        ADS-B reception and broadcast services.
          (2) Eligible sponsor.--The term ``eligible sponsor'' 
        means a State or any consortium of 2 or more State or 
        local governments meeting the definition of a sponsor 
        under section 47102 of this title.

                    SUBTITLE VII--AVIATION PROGRAMS

                    PART A--AIR COMMERCE AND SAFETY

                          SUBPART III--SAFETY

                     CHAPTER 447--SAFETY REGULATION

Sec. 44703. Airman certificates

  (a) General.--The Administrator of the Federal Aviation 
Administration shall issue an airman certificate to an 
individual when the Administrator finds, after investigation, 
that the individual is qualified for, and physically able to 
perform the duties related to, the position to be authorized by 
the certificate.
  (b) Contents.--(1) An airman certificate shall--
          (A) be numbered and recorded by the Administrator of 
        the Federal Aviation Administration;
          (B) contain the name, address, and description of the 
        individual to whom the certificate is issued;
          (C) contain terms the Administrator decides are 
        necessary to ensure safety in air commerce, including 
        terms on the duration of the certificate, periodic or 
        special examinations, and tests of physical fitness;
          (D) specify the capacity in which the holder of the 
        certificate may serve as an airman with respect to an 
        aircraft; and
          (E) designate the class the certificate covers.
  (2) A certificate issued to a pilot serving in scheduled air 
transportation shall have the designation ``airline transport 
pilot'' of the appropriate class.
  (c) Public Information.--
          (1) In general.--Subject to paragraph (2) and 
        notwithstanding any other provision of law, the 
        information contained in the records of contents of any 
        airman certificate issued under this section that is 
        limited to an airman's name, address, and ratings held 
        shall be made available to the public after the 120th 
        day following the date of the enactment of the Wendell 
        H. Ford Aviation Investment and Reform Act for the 21st 
        Century.
          (2) Opportunity to withhold information.--Before 
        making any information concerning an airman available 
        to the public under paragraph (1), the airman shall be 
        given an opportunity to elect that the information not 
        be made available to the public.
          (3) Development and implementation of program.--Not 
        later than 60 days after the date of the enactment of 
        the Wendell H. Ford Aviation Investment and Reform Act 
        for the 21st Century, the Administrator shall develop 
        and implement, in cooperation with representatives of 
        the aviation industry, a one-time written notification 
        to airmen to set forth the implications of making 
        information concerning an airman available to the 
        public under paragraph (1) and to carry out paragraph 
        (2). The Administrator shall also provide such written 
        notification to each individual who becomes an airman 
        after such date of enactment.
  (d) Appeals.--(1) An individual whose application for the 
issuance or renewal of an airman certificate has been denied 
may appeal the denial to the National Transportation Safety 
Board, except if the individual holds a certificate that--
          (A) is suspended at the time of denial; or
          (B) was revoked within one year from the date of the 
        denial.
  (2) The Board shall conduct a hearing on the appeal at a 
place convenient to the place of residence or employment of the 
applicant. The Board is not bound by findings of fact of the 
Administrator of the Federal Aviation Administration but is 
bound by all validly adopted interpretations of laws and 
regulations the Administrator carries out unless the Board 
finds an interpretation is arbitrary, capricious, or otherwise 
not according to law. At the end of the hearing, the Board 
shall decide whether the individual meets the applicable 
regulations and standards. The Administrator is bound by that 
decision.
  (3) Judicial review.--A person substantially affected by an 
order of the Board under this subsection, or the Administrator 
when the Administrator decides that an order of the Board will 
have a significant adverse impact on carrying out this part, 
may obtain judicial review of the order under section 46110 of 
this title. The Administrator shall be made a party to the 
judicial review proceedings. The findings of fact of the Board 
in any such case are conclusive if supported by substantial 
evidence.
  (e) Restrictions and Prohibitions.--The Administrator of the 
Federal Aviation Administration may--
          (1) restrict or prohibit issuing an airman 
        certificate to an alien; or
          (2) make issuing the certificate to an alien 
        dependent on a reciprocal agreement with the government 
        of a foreign country.
  (f) Controlled Substance Violations.--The Administrator of 
the Federal Aviation Administration may not issue an airman 
certificate to an individual whose certificate is revoked under 
section 44710 of this title except--
          (1) when the Administrator decides that issuing the 
        certificate will facilitate law enforcement efforts; 
        and
          (2) as provided in section 44710(e)(2) of this title.
  (g) Modifications in System.--(1) The Administrator of the 
Federal Aviation Administration shall make modifications in the 
system for issuing airman certificates necessary to make the 
system more effective in serving the needs of airmen and 
officials responsible for enforcing laws related to the 
regulation of controlled substances (as defined in section 102 
of the Comprehensive Drug Abuse Prevention and Control Act of 
1970 (21 U.S.C. 802)) and related to combating acts of 
terrorism. The modifications shall ensure positive and 
verifiable identification of each individual applying for or 
holding a certificate and shall address at least each of the 
following deficiencies in, and abuses of, the existing system:
          (A) the use of fictitious names and addresses by 
        applicants for those certificates.
          (B) the use of stolen or fraudulent identification in 
        applying for those certificates.
          (C) the use by an applicant of a post office box or 
        ``mail drop'' as a return address to evade 
        identification of the applicant's address.
          (D) the use of counterfeit and stolen airman 
        certificates by pilots.
          (E) the absence of information about physical 
        characteristics of holders of those certificates.
  (2) The Administrator of the Federal Aviation Administration 
shall prescribe regulations to carry out paragraph (1) of this 
subsection and provide a written explanation of how the 
regulations address each of the deficiencies and abuses 
described in paragraph (1). In prescribing the regulations, the 
Administrator of the Federal Aviation Administration shall 
consult with the Administrator of Drug Enforcement, the 
Commissioner of Customs, other law enforcement officials of the 
United States Government, representatives of State and local 
law enforcement officials, representatives of the general 
aviation aircraft industry, representatives of users of general 
aviation aircraft, and other interested persons.
  (3) For purposes of this section, the term ``acts of 
terrorism'' means an activity that involves a violent act or an 
act dangerous to human life that is a violation of the criminal 
laws of the United States or of any State, or that would be a 
criminal violation if committed within the jurisdiction of the 
United States or of any State, and appears to be intended to 
intimidate or coerce a civilian population to influence the 
policy of a government by intimidation or coercion or to affect 
the conduct of a government by assassination or kidnaping.
  (4) The Administrator is authorized and directed to work with 
State and local authorities, and other Federal agencies, to 
assist in the identification of individuals applying for or 
holding airmen certificates.
  (h) Records of Employment of Pilot Applicants.--
          (1) In general.--Subject to paragraph (14), before 
        allowing an individual to begin service as a pilot, an 
        air carrier shall request and receive the following 
        information:
                  (A) FAA records.--From the Administrator of 
                the Federal Aviation Administration, records 
                pertaining to the individual that are 
                maintained by the Administrator concerning--
                          (i) current airman certificates 
                        (including airman medical certificates) 
                        and associated type ratings, including 
                        any limitations to those certificates 
                        and ratings; and
                          (ii) summaries of legal enforcement 
                        actions resulting in a finding by the 
                        Administrator of a violation of this 
                        title or a regulation prescribed or 
                        order issued under this title that was 
                        not subsequently overturned.
                  (B) Air carrier and other records.--From any 
                air carrier or other person (except a branch of 
                the United States Armed Forces, the National 
                Guard, or a reserve component of the United 
                States Armed Forces) that has employed the 
                individual as a pilot of a civil or public 
                aircraft at any time during the 5-year period 
                preceding the date of the employment 
                application of the individual, or from the 
                trustee in bankruptcy for such air carrier or 
                person--
                          (i) records pertaining to the 
                        individual that are maintained by an 
                        air carrier (other than records 
                        relating to flight time, duty time, or 
                        rest time) under regulations set forth 
                        in--
                                  (I) section 121.683 of title 
                                14, Code of Federal 
                                Regulations;
                                  (II) paragraph (A) of section 
                                VI, appendix I, part 121 of 
                                such title;
                                  (III) paragraph (A) of 
                                section IV, appendix J, part 
                                121 of such title;
                                  (IV) section 125.401 of such 
                                title; and
                                  (V) section 135.63(a)(4) of 
                                such title; and
                          (ii) other records pertaining to the 
                        individual's performance as a pilot 
                        that are maintained by the air carrier 
                        or person concerning--
                                  (I) the training, 
                                qualifications, proficiency, or 
                                professional competence of the 
                                individual, including comments 
                                and evaluations made by a check 
                                airman designated in accordance 
                                with section 121.411, 125.295, 
                                or 135.337 of such title;
                                  (II) any disciplinary action 
                                taken with respect to the 
                                individual that was not 
                                subsequently overturned; and
                                  (III) any release from 
                                employment or resignation, 
                                termination, or 
                                disqualification with respect 
                                to employment.
                  (C) National driver register records.--In 
                accordance with section 30305(b)(8) of this 
                title, from the chief driver licensing official 
                of a State, information concerning the motor 
                vehicle driving record of the individual.
          (2) Written consent; release from liability.--An air 
        carrier making a request for records under paragraph 
        (1)--
                  (A) shall be required to obtain written 
                consent to the release of those records from 
                the individual that is the subject of the 
                records requested; and
                  (B) may, notwithstanding any other provision 
                of law or agreement to the contrary, require 
                the individual who is the subject of the 
                records to request to execute a release from 
                liability for any claim arising from the 
                furnishing of such records to or the use of 
                such records by such air carrier (other than a 
                claim arising from furnishing information known 
                to be false and maintained in violation of a 
                criminal statute).
          (3) 5-year reporting period.--A person shall not 
        furnish a record in response to a request made under 
        paragraph (1) if the record was entered more than 5 
        years before the date of the request, unless the 
        information concerns a revocation or suspension of an 
        airman certificate or motor vehicle license that is in 
        effect on the date of the request.
          (4) Requirement to maintain records.--The 
        Administrator and air carriers shall maintain pilot 
        records described in paragraphs (1)(A) and (1)(B) for a 
        period of at least 5 years.
          (5) Receipt of consent; provision of information.--A 
        person shall not furnish a record in response to a 
        request made under paragraph (1) without first 
        obtaining a copy of the written consent of the 
        individual who is the subject of the records requested; 
        except that, for purposes of paragraph (15), the 
        Administrator may allow an individual designated by the 
        Administrator to accept and maintain written consent on 
        behalf of the Administrator for records requested under 
        paragraph (1)(A). A person who receives a request for 
        records under this subsection shall furnish a copy of 
        all of such requested records maintained by the person 
        not later than 30 days after receiving the request.
          (6) Right to receive notice and copy of any record 
        furnished.--A person who receives a request for records 
        under paragraph (1) shall provide to the individual who 
        is the subject of the records--
                  (A) on or before the 20th day following the 
                date of receipt of the request, written notice 
                of the request and of the individual's right to 
                receive a copy of such records; and
                  (B) in accordance with paragraph (10), a copy 
                of such records, if requested by the 
                individual.
          (7) Reasonable charges for processing requests and 
        furnishing copies.--A person who receives a request 
        under paragraph (1) or (6) may establish a reasonable 
        charge for the cost of processing the request and 
        furnishing copies of the requested records.
          (8) Standard forms.--The Administrator shall 
        promulgate--
                  (A) standard forms that may be used by an air 
                carrier to request records under paragraph (1); 
                and
                  (B) standard forms that may be used by an air 
                carrier to--
                          (i) obtain the written consent of the 
                        individual who is the subject of a 
                        request under paragraph (1); and
                          (ii) inform the individual of--
                                  (I) the request; and
                                  (II) the individual right of 
                                that individual to receive a 
                                copy of any records furnished 
                                in response to the request.
          (9) Right to correct inaccuracies.--An air carrier 
        that maintains or requests and receives the records of 
        an individual under paragraph (1) shall provide the 
        individual with a reasonable opportunity to submit 
        written comments to correct any inaccuracies contained 
        in the records before making a final hiring decision 
        with respect to the individual.
          (10) Right of pilot to review certain records.--
        Notwithstanding any other provision of law or 
        agreement, an air carrier shall, upon written request 
        from a pilot who is or has been employed by such 
        carrier, make available, within a reasonable time, but 
        not later than 30 days after the date of the request, 
        to the pilot for review, any and all employment records 
        referred to in paragraph (1)(B)(i) or (ii) pertaining 
        to the employment of the pilot.
          (11) Privacy protections.--An air carrier that 
        receives the records of an individual under paragraph 
        (1) may use such records only to assess the 
        qualifications of the individual in deciding whether or 
        not to hire the individual as a pilot. The air carrier 
        shall take such actions as may be necessary to protect 
        the privacy of the pilot and the confidentiality of the 
        records, including ensuring that information contained 
        in the records is not divulged to any individual that 
        is not directly involved in the hiring decision.
          (12) Periodic review.--Not later than 18 months after 
        the date of the enactment of the Pilot Records 
        Improvement Act of 1996, and at least once every 3 
        years thereafter, the Administrator shall transmit to 
        Congress a statement that contains, taking into account 
        recent developments in the aviation industry--
                  (A) recommendations by the Administrator 
                concerning proposed changes to Federal Aviation 
                Administration records, air carrier records, 
                and other records required to be furnished 
                under subparagraphs (A) and (B) of paragraph 
                (1); or
                  (B) reasons why the Administrator does not 
                recommend any proposed changes to the records 
                referred to in subparagraph (A).
          (13) Regulations.--The Administrator may prescribe 
        such regulations as shall be necessary--
                  (A) to protect--
                          (i) the personal privacy of any 
                        individual whose records are requested 
                        under paragraph (1) and disseminated 
                        under paragraph (15); and
                          (ii) the confidentiality of those 
                        records;
                  (B) to preclude the further dissemination of 
                records received under paragraph (1) by the 
                person who requested those records; and
                  (C) to ensure prompt compliance with any 
                request made under paragraph (1).
          (14) Special rules with respect to certain pilots.--
                  (A) Pilots of certain small aircraft.--
                Notwithstanding paragraph (1), an air carrier, 
                before receiving information requested about an 
                individual under paragraph (1), may allow the 
                individual to begin service for a period not to 
                exceed 90 days as a pilot of an aircraft with a 
                maximum payload capacity (as defined in section 
                119.3 of title 14, Code of Federal Regulations) 
                of 7,500 pounds or less, or a helicopter, on a 
                flight that is not a scheduled operation (as 
                defined in such section). Before the end of the 
                90-day period, the air carrier shall obtain and 
                evaluate such information. The contract between 
                the carrier and the individual shall contain a 
                term that provides that the continuation of the 
                individual's employment, after the last day of 
                the 90-day period, depends on a satisfactory 
                evaluation.
                  (B) Good faith exception.--Notwithstanding 
                paragraph (1), an air carrier, without 
                obtaining information about an individual under 
                paragraph (1)(B) from an air carrier or other 
                person that no longer exists or from a foreign 
                government or entity that employed the 
                individual, may allow the individual to begin 
                service as a pilot if the air carrier required 
                to request the information has made a 
                documented good faith attempt to obtain such 
                information.
          (15) Electronic access to FAA records.--For the 
        purpose of increasing timely and efficient access to 
        Federal Aviation Administration records described in 
        paragraph (1), the Administrator may allow, under terms 
        established by the Administrator, an individual 
        designated by the air carrier to have electronic access 
        to a specified database containing information about 
        such records. The terms shall limit such access to 
        instances in which information in the database is 
        required by the designated individual in making a 
        hiring decision concerning a pilot applicant and shall 
        require that the designated individual provide 
        assurances satisfactory to the Administrator that 
        information obtained using such access will not be used 
        for any purpose other than making the hiring decision.
  (i) Limitation on Liability; Preemption of State Law.--
          (1) Limitation on liability.--No action or proceeding 
        may be brought by or on behalf of an individual who has 
        applied for or is seeking a position with an air 
        carrier as a pilot and who has signed a release from 
        liability, as provided for under paragraph (2), 
        against--
                  (A) the air carrier requesting the records of 
                that individual under subsection (h)(1);
                  (B) a person who has complied with such 
                request;
                  (C) a person who has entered information 
                contained in the individual's records; or
                  (D) an agent or employee of a person 
                described in subparagraph (A) or (B);
        in the nature of an action for defamation, invasion of 
        privacy, negligence, interference with contract, or 
        otherwise, or under any Federal or State law with 
        respect to the furnishing or use of such records in 
        accordance with subsection (h).
          (2) Preemption.--No State or political subdivision 
        thereof may enact, prescribe, issue, continue in 
        effect, or enforce any law (including any regulation, 
        standard, or other provision having the force and 
        effect of law) that prohibits, penalizes, or imposes 
        liability for furnishing or using records in accordance 
        with subsection (h).
          (3) Provision of knowingly false information.--
        Paragraphs (1) and (2) shall not apply with respect to 
        a person who furnishes information in response to a 
        request made under subsection (h)(1), that--
                  (A) the person knows is false; and
                  (B) was maintained in violation of a criminal 
                statute of the United States.
  (j) Limitation on Statutory Construction.--Nothing in 
subsection (h) shall be construed as precluding the 
availability of the records of a pilot in an investigation or 
other proceeding concerning an accident or incident conducted 
by the Administrator, the National Transportation Safety Board, 
or a court.

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

  (a) Type Certificates.--(1) The Administrator of the Federal 
Aviation Administration shall issue a type certificate for an 
aircraft, aircraft engine, or propeller, or for an appliance 
specified under paragraph (2)(A) of this subsection when the 
Administrator finds that the aircraft, aircraft engine, 
propeller, or appliance is properly designed and manufactured, 
performs properly, and meets the regulations and minimum 
standards prescribed under section 44701(a) of this title. On 
receiving an application for a type certificate, the 
Administrator shall investigate the application and may conduct 
a hearing. The Administrator shall make, or require the 
applicant to make, tests the Administrator considers necessary 
in the interest of safety.
  (2) The Administrator may--
          (A) specify in regulations those appliances that 
        reasonably require a type certificate in the interest 
        of safety;
          (B) include in a type certificate terms required in 
        the interest of safety; and
          (C) record on the certificate a numerical 
        specification of the essential factors related to the 
        performance of the aircraft, aircraft engine, or 
        propeller for which the certificate is issued.
  (3) If the holder of a type certificate agrees to permit 
another person to use the certificate to manufacture a new 
aircraft, aircraft engine, propeller, or appliance, the holder 
shall provide the other person with written evidence, in a form 
acceptable to the Administrator, of that agreement. Such other 
person may manufacture a new aircraft, aircraft engine, 
propeller, or appliance based on a type certificate only if 
such other person is the holder of the type certificate or has 
permission from the holder.
  (4) Limitation for aircraft manufactured before August 5, 
2004.--Paragraph (3) shall not apply to a person who began the 
manufacture of an aircraft before August 5, 2004, and who 
demonstrates to the satisfaction of the Administrator that such 
manufacture began before August 5, 2004, if the name of the 
holder of the type certificate for the aircraft does not appear 
on the airworthiness certificate or identification plate of the 
aircraft. The holder of the type certificate for the aircraft 
shall not be responsible for the continued airworthiness of the 
aircraft. A person may invoke the exception provided by this 
paragraph with regard to the manufacture of only one aircraft.
  (5) Release of data.--
          (A) Notwithstanding any other provision of law, the 
        Administrator may designate, without the consent of the 
        owner of record, engineering data in the agency's 
        possession related to a type certificate or a 
        supplemental type certificate for an aircraft, engine, 
        propeller or appliance as public data, and therefore 
        releasable, upon request, to a person seeking to 
        maintain the airworthiness of such product, if the 
        Administrator determines that--
                  (i) the certificate containing the requested 
                data has been inactive for 3 years;
                  (ii) the owner of record, or the owner of 
                record's heir, of the type certificate or 
                supplemental certificate has not been located 
                despite a search of due diligence by the 
                agency; and
                  (iii) the designation of such data as public 
                data will enhance aviation safety.
          (B) In this section, the term `engineering data' 
        means type design drawings and specifications for the 
        entire product or change to the product, including the 
        original design data, and any associated supplier data 
        for individual parts or components approved as part of 
        the particular aeronautical product certificate.
  (b) Supplemental Type Certificates.--
          (1) Issuance.--The Administrator may issue a type 
        certificate designated as a supplemental type 
        certificate for a change to an aircraft, aircraft 
        engine, propeller, or appliance.
          (2) Contents.--A supplemental type certificate issued 
        under paragraph (1) shall consist of the change to the 
        aircraft, aircraft engine, propeller, or appliance with 
        respect to the previously issued type certificate for 
        the aircraft, aircraft engine, propeller, or appliance.
          (3) Requirement.--If the holder of a supplemental 
        type certificate agrees to permit another person to use 
        the certificate to modify an aircraft, aircraft engine, 
        propeller, or appliance, the holder shall provide the 
        other person with written evidence, in a form 
        acceptable to the Administrator, of that agreement. A 
        person may change an aircraft, aircraft engine, 
        propeller, or appliance based on a supplemental type 
        certificate only if the person requesting the change is 
        the holder of the supplemental type certificate or has 
        permission from the holder to make the change.
  (c) Production Certificates.--The Administrator shall issue a 
production certificate authorizing the production of a 
duplicate of an aircraft, aircraft engine, propeller, or 
appliance for which a type certificate has been issued when the 
Administrator finds the duplicate will conform to the 
certificate. On receiving an application, the Administrator 
shall inspect, and may require testing of, a duplicate to 
ensure that it conforms to the requirements of the certificate. 
The Administrator may include in a production certificate terms 
required in the interest of safety.
  (d) Airworthiness Certificates.--(1) The registered owner of 
an aircraft may apply to the Administrator for an airworthiness 
certificate for the aircraft. The Administrator shall issue an 
airworthiness certificate when the Administrator finds that the 
aircraft conforms to its type certificate and, after 
inspection, is in condition for safe operation. The 
Administrator shall register each airworthiness certificate and 
may include appropriate information in the certificate. The 
certificate number or other individual designation the 
Administrator requires shall be displayed on the aircraft. The 
Administrator may include in an airworthiness certificate terms 
required in the interest of safety.
  (2) A person applying for the issuance or renewal of an 
airworthiness certificate for an aircraft for which ownership 
has not been recorded under section 44107 or 44110 of this 
title must submit with the application information related to 
the ownership of the aircraft the Administrator decides is 
necessary to identify each person having a property interest in 
the aircraft and the kind and extent of the interest.
  (e) Design Organization Certificates.--
          (1) Issuance.--[Beginning 7 years after the date of 
        enactment of this subsection,] Effective January 1, 
        2013, the Administrator may issue a design organization 
        certificate to a design organization to authorize the 
        organization to certify compliance with the 
        requirements and minimum standards prescribed under 
        section 44701(a) for the type certification of 
        aircraft, aircraft engines, propellers, or appliances.
          (2) Applications.--On receiving an application for a 
        design organization certificate, the Administrator 
        shall examine and rate the design organization 
        submitting the application, in accordance with 
        regulations to be prescribed by the Administrator, to 
        determine whether the design organization has adequate 
        engineering, design, and [testing] production 
        capabilities, standards, and safeguards to ensure that 
        the product being certificated is properly designed and 
        manufactured, performs properly, and meets the 
        regulations and minimum standards prescribed under 
        section 44701(a).
          [(3) Issuance of type certificates based on design 
        organization certification.--The Administrator may rely 
        on certifications of compliance by a design 
        organization when making a finding under subsection 
        (a).]
          (3) Issuance of certificate based on design 
        organization certification.--The Administrator may rely 
        on the Design Organization for certification of 
        compliance under this section.
          (4) Public safety.--The Administrator shall include 
        in a design organization certificate issued under this 
        subsection terms required in the interest of safety.
          (5) No effect on power of revocation.--Nothing in 
        this subsection affects the authority of the Secretary 
        of Transportation to revoke a certificate.

           *       *       *       *       *       *       *

Sec. 44728. Flight attendant certification

  (a) Certificate Required.--
          (1) In general.--No person may serve as a flight 
        attendant aboard an aircraft of an air carrier unless 
        that person holds a certificate of demonstrated 
        proficiency from the Administrator of the Federal 
        Aviation Administration. Upon the request of the 
        Administrator or an authorized representative of the 
        National Transportation Safety Board or another Federal 
        agency, a person who holds such a certificate shall 
        present the certificate for inspection within a 
        reasonable period of time after the date of the 
        request.
          (2) Special rule for current flight attendants.--An 
        individual serving as a flight attendant on the 
        effective date of this section may continue to serve 
        aboard an aircraft as a flight attendant until 
        completion by that individual of the required recurrent 
        or requalification training and subsequent 
        certification under this section.
          (3) Treatment of flight attendant after 
        notification.--On the date that the Administrator is 
        notified by an air carrier that an individual has the 
        demonstrated proficiency to be a flight attendant, the 
        individual shall be treated for purposes of this 
        section as holding a certificate issued under the 
        section.
  (b) Issuance of Certificate.--The Administrator shall issue a 
certificate of demonstrated proficiency under this section to 
an individual after the Administrator is notified by the air 
carrier that the individual has successfully completed all the 
training requirements for flight attendants approved by the 
Administrator.
  (c) Designation of Person To Determine Successful Completion 
of Training.--In accordance with part 183 of chapter \1\ 14, 
Code of Federal Regulation, the director of operations of an 
air carrier is designated to determine that an individual has 
successfully completed the training requirements approved by 
the Administrator for such individual to serve as a flight 
attendant.
---------------------------------------------------------------------------
    \1\ So in original. Probably should read title.
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  (d) Specifications Relating to Certificates.--Each 
certificate issued under this section shall--
          (1) be numbered and recorded by the Administrator;
          (2) contain the name, address, and description of the 
        individual to whom the certificate is issued;
          (3) is similar in size and appearance to certificates 
        issued to airmen;
          (4) contain the airplane group for which the 
        certificate is issued; and
          (5) be issued not later than 120 days after the 
        Administrator receives notification from the air 
        carrier of demonstrated proficiency and, in the case of 
        an individual serving as flight attendant on the 
        effective date of this section, not later than 1 year 
        after such effective date.
  (e) Approval of Training Programs.--Air carrier flight 
attendant training programs shall be subject to approval by the 
Administrator. All flight attendant training programs approved 
by the Administrator in the 1-year period ending on the date of 
enactment of this section shall be treated as providing a 
demonstrated proficiency for purposes of meeting the 
certification requirements of this section.
  (f) Minimum English Language Skills.--
            (1) In general.--No certificate holder may use any 
        person to serve, nor may any person serve, as a flight 
        attendant under this part, unless that person has the 
        ability to read, speak, and write English well enough 
        to--
                    (A) read material written in English and 
                comprehend the information;
                    (B) speak and understand English 
                sufficiently to provide direction to, and 
                understand and answer questions from, English-
                speaking individuals;
                    (C) write incident reports and statements 
                and log entries and statements; and
                    (D) carry out written and oral instructions 
                regarding the proper performance of their 
                duties.
            (2) Foreign flights.--The requirements of paragraph 
        (1) do not apply to service as a flight attendant on a 
        flight operated by a certificate holder solely between 
        points outside the United States.
  [(f)] (g) Flight Attendant Defined.--In this section, the 
term ``flight attendant'' means an individual working as a 
flight attendant in the cabin of an aircraft that has 20 or 
more seats and is being used by an air carrier to provide air 
transportation.

                    PART A--AIR COMMERCE AND SAFETY

                          SUBPART III--SAFETY

                           CHAPTER 453--FEES

Sec. 45301. General provisions

  (a) Schedule of Fees.--The Administrator shall establish a 
schedule of new fees, and a collection process for such fees, 
for the following services provided by the Administration:
          (1) Air traffic control and related services provided 
        to aircraft other than military and civilian aircraft 
        of the United States government or of a foreign 
        government that neither take off from, nor land in, the 
        United States.
          (2) Services (other than air traffic control 
        services) provided to a foreign government or services 
        provided to any entity obtaining services outside the 
        United States, except that the Administrator shall not 
        impose fees in any manner for production-certification 
        related service performed outside the United States 
        pertaining to aeronautical products manufactured 
        outside the United States.
  [(b) Limitations.--
          [(1) Authorization and impact considerations.--In 
        establishing fees under subsection (a), the 
        Administrator--
                  [(A) is authorized to recover in fiscal year 
                1997 $100,000,000; and
                  [(B) shall ensure that each of the fees 
                required by subsection (a) is reasonably 
                related to the Administration's costs, as 
                determined by the Administrator, of providing 
                the service rendered. Services for which costs 
                may be recovered include the costs of air 
                traffic control, navigation, weather services, 
                training and emergency services which are 
                available to facilitate safe transportation 
                over the United States, and other services 
                provided by the Administrator or by programs 
                financed by the Administrator to flights that 
                neither take off nor land in the United States. 
                The Determination of such costs by the 
                Administrator is not subject to judicial 
                review.
          [(2) Publication; comment.--The Administrator shall 
        publish in the Federal Register an initial fee schedule 
        and associated collection process as an interim final 
        rule, pursuant to which public comment will be sought 
        and a final rule issued.]
  (b) Limitations.--
          (1) In general.--In establishing fees under 
        subsection (a), the Administrator shall ensure that the 
        fees required by subsection (a) are reasonably related 
        to the Administration's costs, as determined by the 
        Administrator, of providing the services rendered. 
        Services for which costs may be recovered include the 
        costs of air traffic control, navigation, weather 
        services, training, and emergency services which are 
        available to facilitate safe transportation over the 
        United States, and other services provided by the 
        Administrator or by programs financed by the 
        Administrator to flights that neither take off nor land 
        in the United States. The determination of such costs 
        by the Administrator is not subject to judicial review.
          (2) Adjustment of fees.--The Administrator shall 
        adjust the overflight fees established by subsection 
        (a)(1) by expedited rulemaking and begin collections 
        under the adjusted fees by October 1, 2008. In 
        developing the adjusted overflight fees, the 
        Administrator shall seek and consider the 
        recommendations offered by the Aviation Rulemaking 
        Committee for Overflight Fees that are intended to 
        ensure that overflight fees are reasonably related to 
        the Administrator's costs of providing air traffic 
        control and related services to overflights. In 
        addition, the Administrator may periodically modify the 
        fees established under this section either on the 
        Administrator's own initiative or on a recommendation 
        from the Air Traffic Control Modernization Board.
          (3) Cost data.--The adjustment of overflight fees 
        under paragraph (2) shall be based on the costs to the 
        Administration of providing the air traffic control and 
        related activities, services, facilities, and equipment 
        using the available data derived from the 
        Administration's cost accounting system and cost 
        allocation system to users, as well as budget and 
        operational data.
          (4) Aircraft altitude.--Nothing in this section shall 
        require the Administrator to take into account aircraft 
        altitude in establishing any fee for aircraft 
        operations in en route or oceanic airspace.
          (5) Administrative provisions.--Section 48115(c) 
        shall apply to the imposition and collection of 
        overflight fees established under this section. For the 
        purpose of applying that section to such fees, any 
        reference in section 48515(c) to ``surcharge'' or 
        ``surcharges'' is deemed to refer to ``overflight fee'' 
        or ``overflight fees'', respectively.
          (6) Costs defined.--In this subsection, the term 
        ``costs'' means those costs associated with the 
        operation, maintenance, debt service, and overhead 
        expenses of the services provided and the facilities 
        and equipment used in such services, including the 
        projected costs for the period during which the 
        services will be provided.
          (7) Publication; comment.--The Administrator shall 
        publish in the Federal Register any fee schedule under 
        this section, including any adjusted overflight fee 
        schedule, and the associated collection process as an 
        interim final rule, pursuant to which public comment 
        will be sought and a final rule issued.
  (c) Use of Experts and Consultants.--In developing the 
system, the Administrator may consult with such nongovernmental 
experts as the Administrator may employ and the Administrator 
may utilize the services of experts and consultants under 
section 3109 of title 5 without regard to the limitation 
imposed by the last sentence of section 3109(b) of such title, 
and may contract on a sole source basis, notwithstanding any 
other provision of law to the contrary. Notwithstanding any 
other provision of law to the contrary, the Administrator may 
retain such experts under a contract awarded on a basis other 
than a competitive basis and without regard to any such 
provisions requiring competitive bidding or precluding sole 
source contract authority.
  (d) Production-Certification Related Service Defined.--In 
this section, the term ``production-certification related 
service'' has the meaning given that term in appendix C of part 
187 of title 14, Code of Federal Regulations.

                    SUBTITLE VII--AVIATION PROGRAMS

                 PART B--AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471--AIRPORT DEVELOPMENT

                   SUBCHAPTER I--AIRPORT IMPROVEMENT

Sec. 47102. Definitions

  In this subchapter--
          (1) ``air carrier airport'' means a public airport 
        regularly served by--
                  (A) an air carrier certificated by the 
                Secretary of Transportation under section 41102 
                of this title (except a charter air carrier); 
                or
                  (B) at least one air carrier--
                          (i) operating under an exemption from 
                        section 41101(a)(1) of this title that 
                        the Secretary grants; and
                          (ii) having at least 2,500 passenger 
                        boardings at the airport during the 
                        prior calendar year.
          (2) ``airport''--
                  (A) means--
                          (i) an area of land or water used or 
                        intended to be used for the landing and 
                        taking off of aircraft;
                          (ii) an appurtenant area used or 
                        intended to be used for airport 
                        buildings or other airport facilities 
                        or rights of way; and
                          (iii) airport buildings and 
                        facilities located in any of those 
                        areas; and
                  (B) includes a heliport.
          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A) constructing, repairing, or improving a 
                public-use airport, including--
                          (i) removing, lowering, relocating, 
                        marking, and lighting an airport 
                        hazard; and
                          (ii) preparing a plan or 
                        specification, including carrying out a 
                        field investigation.
                  (B) acquiring for, or installing at, a 
                public-use airport--
                          (i) a navigation aid or another aid 
                        (including a precision approach system) 
                        used by aircraft for landing at or 
                        taking off from the airport, including 
                        preparing the site as required by the 
                        acquisition or installation;
                          (ii) safety or security equipment, 
                        including explosive detection devices, 
                        universal access systems, and emergency 
                        call boxes, the Secretary requires by 
                        regulation for, or approves as 
                        contributing significantly to, the 
                        safety or security of individuals and 
                        property at the airport and integrated 
                        in-pavement lighting systems for 
                        runways and taxiways and other runway 
                        and taxiway incursion prevention 
                        devices;
                          (iii) equipment to remove snow, to 
                        measure runway surface friction, or for 
                        aviation-related weather reporting, 
                        including closed circuit weather 
                        surveillance equipment if the airport 
                        is located in Alaska;
                          (iv) firefighting and rescue 
                        equipment at an airport that serves 
                        scheduled passenger operations of air 
                        carrier aircraft designed for more than 
                        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, 
                treatment and discharge systems, appropriate 
                lighting, paved access for deicing vehicles and 
                aircraft, but not including acquiring aircraft 
                deicing fluids or constructing or 
                reconstructing storage facilities for aircraft 
                deicing equipment or fluids.
                  (H) routine work to preserve and extend the 
                useful life of runways, taxiways, and aprons at 
                nonhub airports and airports that are not 
                primary airports, under guidelines issued by 
                the Administrator of the Federal Aviation 
                Administration.
                  (I) constructing, reconstructing, or 
                improving an airport, or purchasing nonrevenue 
                generating capital equipment to be owned by an 
                airport, for the purpose of transferring 
                passengers, cargo, or baggage between the 
                aeronautical and ground transportation modes on 
                airport property.
                  (J) constructing an air traffic control tower 
                or acquiring and installing air traffic 
                control, communications, and related equipment 
                at an air traffic control tower under the terms 
                specified in section 47124(b)(4).
                  (K) work necessary to construct or modify 
                airport facilities to provide low-emission fuel 
                systems, gate electrification, and other 
                related air quality improvements at a 
                commercial service airport if the airport is 
                located in an air quality nonattainment or 
                maintenance area (as defined in sections 171(2) 
                and 175A of the Clean Air Act (42 U.S.C. 
                7501(2); 7505a) and if such project will result 
                in an airport receiving appropriate emission 
                credits, as described in section 47139.
                  (L) a project for the acquisition or 
                conversion of vehicles and ground support 
                equipment, owned by a commercial service 
                airport, to low-emission technology, if the 
                airport is located in an air quality 
                nonattainment or maintenance area (as defined 
                in sections 171(2) and 175A of the Clean Air 
                Act (42 U.S.C. 7501(2); 7505a) and if such 
                project will result in an airport receiving 
                appropriate emission credits as described in 
                section 47139.
                  (M) construction of mobile refueler parking 
                within a fuel farm at a nonprimary airport 
                meeting the requirements of section 112.8 of 
                title 40, Code of Federal Regulations.
          (4) ``airport hazard'' means a structure or object of 
        natural growth located on or near a public-use airport, 
        or a use of land near the airport, that obstructs or 
        otherwise is hazardous to the landing or taking off of 
        aircraft at or from the airport.
          (5) ``airport planning'' means planning as defined by 
        regulations the Secretary prescribes and includes 
        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 airport 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 submits 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 Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and Guam.

Sec. 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--] the airport system to--
          (1) the rest of the transportation [system in the 
        particular area;] system, including connection to the 
        surface transportation network; and
          (2) forecasted technological developments in 
        [aeronautics; and] aeronautics.
          [(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)] (2) make every reasonable effort to address the 
        needs of air cargo [operations, Short Takeoff and 
        Landing/Very Short Takeoff and Landing aircraft 
        operations,] 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 
publish the [status of the] plan every 2 years.

           *       *       *       *       *       *       *

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

  (a) General Written Assurances.--The Secretary of 
Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that--
          (1) the airport will be available for public use on 
        reasonable conditions and without unjust 
        discrimination;
          (2) air carriers making similar use of the airport 
        will be subject to substantially comparable charges--
                  (A) for facilities directly and substantially 
                related to providing air transportation; and
                  (B) regulations and conditions, except for 
                differences based on reasonable 
                classifications, such as between--
                          (i) tenants and nontenants; and
                          (ii) signatory and nonsignatory 
                        carriers;
          (3) the airport operator will not withhold 
        unreasonably the classification or status of tenant or 
        signatory from an air carrier that assumes obligations 
        substantially similar to those already imposed on air 
        carriers of that classification or status;
          (4) a person providing, or intending to provide, 
        aeronautical services to the public will not be given 
        an exclusive right to use the airport, with a right 
        given to only one fixed-base operator to provide 
        services at an airport deemed not to be an exclusive 
        right if--
                  (A) the right would be unreasonably costly, 
                burdensome, or impractical for more than one 
                fixed-base operator to provide the services; 
                and
                  (B) allowing more than one fixed-base 
                operator to provide the services would require 
                reducing the space leased under an existing 
                agreement between the one fixed-base operator 
                and the airport owner or operator;
          (5) fixed-base operators similarly using the airport 
        will be subject to the same charges;
          (6) an air carrier using the airport may service 
        itself or use any fixed-base operator allowed by the 
        airport operator to service any carrier at the airport;
          (7) the airport and facilities on or connected with 
        the airport will be operated and maintained suitably, 
        with consideration given to climatic and flood 
        conditions;
          (8) a proposal to close the airport temporarily for a 
        nonaeronautical purpose must first be approved by the 
        Secretary;
          (9) appropriate action will be taken to ensure that 
        terminal airspace required to protect instrument and 
        visual operations to the airport (including operations 
        at established minimum flight altitudes) will be 
        cleared and protected by mitigating existing, and 
        preventing future, airport hazards;
          (10) appropriate action, including the adoption of 
        zoning laws, has been or will be taken to the extent 
        reasonable to restrict the use of land next to or near 
        the airport to uses that are compatible with normal 
        airport operations;
          (11) each of the airport's facilities developed with 
        financial assistance from the United States Government 
        and each of the airport's facilities usable for the 
        landing and taking off of aircraft always will be 
        available without charge for use by Government aircraft 
        in common with other aircraft, except that if the use 
        is substantial, the Government may be charged a 
        reasonable share, proportionate to the use, of the cost 
        of operating and maintaining the facility used;
          (12) the airport owner or operator will provide, 
        without charge to the Government, property interests of 
        the sponsor in land or water areas or buildings that 
        the Secretary decides are desirable for, and that will 
        be used for, constructing at Government expense, 
        facilities for carrying out activities related to air 
        traffic control or navigation;
          (13) the airport owner or operator will maintain a 
        schedule of charges for use of facilities and services 
        at the airport--
                  (A) that will make the airport as self-
                sustaining as possible under the circumstances 
                existing at the airport, including volume of 
                traffic and economy of collection; and
                  (B) without including in the rate base used 
                for the charges the Government's share of costs 
                for any project for which a grant is made under 
                this subchapter or was made under the Federal 
                Airport Act or the Airport and Airway 
                Development Act of 1970;
          (14) the project accounts and records will be kept 
        using a standard system of accounting that the 
        Secretary, after consulting with appropriate public 
        agencies, prescribes;
          (15) the airport owner or operator will submit any 
        annual or special airport financial and operations 
        reports to the Secretary that the Secretary reasonably 
        requests and make such reports available to the public;
          (16) the airport owner or operator will maintain a 
        current layout plan of the airport that meets the 
        following requirements:
                  (A) the plan will be in a form the Secretary 
                prescribes;
                  (B) the Secretary will approve the plan and 
                any revision or modification before the plan, 
                revision, or modification takes effect;
                  (C) the owner or operator will not make or 
                allow any alteration in the airport or any of 
                its facilities if the alteration does not 
                comply with the plan the Secretary approves, 
                and the Secretary is of the opinion that the 
                alteration may affect adversely the safety, 
                utility, or efficiency of the airport; and
                  (D) when an alteration in the airport or its 
                facility is made that does not conform to the 
                approved plan and that the Secretary decides 
                adversely affects the safety, utility, or 
                efficiency of any property on or off the 
                airport that is owned, leased, or financed by 
                the Government, the owner or operator, if 
                requested by the Secretary, will--
                          (i) eliminate the adverse effect in a 
                        way the Secretary approves; or
                          (ii) bear all cost of relocating the 
                        property or its replacement to a site 
                        acceptable to the Secretary and of 
                        restoring the property or its 
                        replacement to the level of safety, 
                        utility, efficiency, and cost of 
                        operation that existed before the 
                        alteration was [made;] made, except 
                        that, if there is a change in airport 
                        design standards that the Secretary 
                        determines is beyond the owner or 
                        operator's control that requires the 
                        relocation or replacement of an 
                        existing airport facility, the 
                        Secretary, upon the request of the 
                        owner or operator, may grant funds 
                        available under section 47114 to pay 
                        the cost of relocating or replacing 
                        such facility;
          (17) each contract and subcontract for program 
        management, construction management, planning studies, 
        feasibility studies, architectural services, 
        preliminary engineering, design, engineering, 
        surveying, mapping, and related services will be 
        awarded in the same way that a contract for 
        architectural and engineering services is negotiated 
        under chapter 11 of title 40 or an equivalent 
        qualifications-based requirement prescribed for or by 
        the sponsor;
          (18) the airport and each airport record will be 
        available for inspection by the Secretary on reasonable 
        request, and a report of the airport budget will be 
        available to the public at reasonable times and places;
          (19) the airport owner or operator will submit to the 
        Secretary and make available to the public an annual 
        report listing in detail--
                  (A) all amounts paid by the airport to any 
                other unit of government and the purposes for 
                which each such payment was made; and
                  (B) all services and property provided to 
                other units of government and the amount of 
                compensation received for provision of each 
                such service and property;
          (20) the airport owner or operator will permit, to 
        the maximum extent practicable, intercity buses or 
        other modes of transportation to have access to the 
        airport, but the sponsor does not have any obligation 
        under this paragraph, or because of it, to fund special 
        facilities for intercity bus service or for other modes 
        of transportation; and
          (21) if the airport owner or operator and a person 
        who owns an aircraft agree that a hangar is to be 
        constructed at the airport for the aircraft at the 
        aircraft owner's expense, the airport owner or operator 
        will grant to the aircraft owner for the hangar a long-
        term lease that is subject to such terms and conditions 
        on the hangar as the airport owner or operator may 
        impose.
  (b) Written Assurances on Use of Revenue.--(1) The Secretary 
of Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that local taxes on aviation fuel (except taxes in 
effect on December 30, 1987) and the revenues generated by a 
public airport will be expended for the capital or operating 
costs of--
          (A) the airport;
          (B) the local airport system; or
          (C) other local facilities owned or operated by the 
        airport owner or operator and directly and 
        substantially related to the air transportation of 
        passengers or property.
  (2) Paragraph (1) of this subsection does not apply if a 
provision enacted not later than September 2, 1982, in a law 
controlling financing by the airport owner or operator, or a 
covenant or assurance in a debt obligation issued not later 
than September 2, 1982, by the owner or operator, provides that 
the revenues, including local taxes on aviation fuel at public 
airports, from any of the facilities of the owner or operator, 
including the airport, be used to support not only the airport 
but also the general debt obligations or other facilities of 
the owner or operator.
  (3) This subsection does not prevent the use of a State tax 
on aviation fuel to support a State aviation program or the use 
of airport revenue on or off the airport for a noise mitigation 
purpose.
  (c) Written Assurances on Acquiring Land.--(1) In this 
subsection, land is needed for an airport purpose (except a 
noise compatibility purpose) if--
          (A)(i) the land may be needed for an aeronautical 
        purpose (including runway protection zone) or serves as 
        noise buffer land; and
  (ii) revenue from interim uses of the land contributes to the 
financial self-sufficiency of the airport; and
          (B) for land purchased with a grant the owner or 
        operator received not later than December 30, 1987, the 
        Secretary of Transportation or the department, agency, 
        or instrumentality of the Government that made the 
        grant was notified by the owner or operator of the use 
        of the land and did not object to the use and the land 
        is still being used for that purpose.
  (2) The Secretary of Transportation may approve an 
application under this subchapter for an airport development 
project grant only if the Secretary receives written 
assurances, satisfactory to the Secretary, that if an airport 
owner or operator has received or will receive a grant for 
acquiring land and--
          (A) if the land was or will be acquired for a noise 
        compatibility purpose--
                  (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;] 
                purpose, which includes serving as noise buffer 
                land;
                  (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 paid to the Secretary for deposit 
                in the Airport and Airway Trust Fund 
                established under section 9502 of the Internal 
                Revenue Code of 1986 (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.] reinvested in another 
                project at the airport or transferred to 
                another airport as the Secretary prescribes.
  (3) In approving the reinvestment or transfer of proceeds 
under paragraph (2)(C)(iii), the Secretary shall give 
preference, in descending order, to--
          (i) reinvestment in an approved noise compatibility 
        project;
          (ii) reinvestment in an approved project that is 
        eligible for funding under section 47117(e);
          (iii) reinvestment in an airport development project 
        that is eligible for funding under section 47114, 
        47115, or 47117 and meets the requirements of this 
        chapter;
          (iv) transfer to the sponsor of another public 
        airport to be reinvested in an approved noise 
        compatibility project at such airport; and
          (v) payment to the Secretary for deposit in the 
        Airport and Airway Trust Fund established under section 
        9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
        9502).
  [(3)] (4) 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 
privately owned public-use airport only if the Secretary 
receives appropriate assurances that the airport will continue 
to function as a public-use airport during the economic life 
(that must be at least 10 years) of any facility at the airport 
that was developed with Government financial assistance under 
this subchapter.
  (e) Written Assurances of Opportunities for Small Business 
Concerns.--(1) The Secretary of Transportation may approve a 
project grant application under this subchapter for an airport 
development project only if the Secretary receives written 
assurances, satisfactory to the Secretary, that the airport 
owner or operator will take necessary action to ensure, to the 
maximum extent practicable, that at least 10 percent of all 
businesses at the airport selling consumer products or 
providing consumer services to the public are small business 
concerns (as defined by regulations of the Secretary) owned and 
controlled by a socially and economically disadvantaged 
individual (as defined in section 47113(a) of this title) or 
qualified HUBZone small business concerns (as defined in 
section 3(p) of the Small Business Act).
  (2) An airport owner or operator may meet the percentage goal 
of paragraph (1) of this subsection by including any business 
operated through a management contract or subcontract. The 
dollar amount of a management contract or subcontract with a 
disadvantaged business enterprise shall be added to the total 
participation by disadvantaged business enterprises in airport 
concessions and to the base from which the airport's percentage 
goal is calculated. The dollar amount of a management contract 
or subcontract with a non-disadvantaged business enterprise and 
the gross revenue of business activities to which the 
management contract or subcontract pertains may not be added to 
this base.
  (3) Except as provided in paragraph (4) of this subsection, 
an airport owner or operator may meet the percentage goal of 
paragraph (1) of this subsection by including the purchase from 
disadvantaged business enterprises of goods and services used 
in businesses conducted at the airport, but the owner or 
operator and the businesses conducted at the airport shall make 
good faith efforts to explore all available options to achieve, 
to the maximum extent practicable, compliance with the goal 
through direct ownership arrangements, including joint ventures 
and franchises.
  (4)(A) In complying with paragraph (1) of this subsection, an 
airport owner or operator shall include the revenues of car 
rental firms at the airport in the base from which the 
percentage goal in paragraph (1) is calculated.
  (B) An airport owner or operator may require a car rental 
firm to meet a requirement under paragraph (1) of this 
subsection by purchasing or leasing goods or services from a 
disadvantaged business enterprise. If an owner or operator 
requires such a purchase or lease, a car rental firm shall be 
permitted to meet the requirement by including purchases or 
leases of vehicles from any vendor that qualifies as a small 
business concern owned and controlled by a socially and 
economically disadvantaged individual or as a qualified HUBZone 
small business concern (as defined in section 3(p) of the Small 
Business Act).
  (C) This subsection does not require a car rental firm to 
change its corporate structure to provide for direct ownership 
arrangements to meet the requirements of this subsection.
  (5) This subsection does not preempt--
          (A) a State or local law, regulation, or policy 
        enacted by the governing body of an airport owner or 
        operator; or
          (B) the authority of a State or local government or 
        airport owner or operator to adopt or enforce a law, 
        regulation, or policy related to disadvantaged business 
        enterprises.
  (6) An airport owner or operator may provide opportunities 
for a small business concern owned and controlled by a socially 
and economically disadvantaged individual or a qualified 
HUBZone small business concern (as defined in section 3(p) of 
the Small Business Act) to participate through direct 
contractual agreement with that concern.
  (7) An air carrier that provides passenger or property-
carrying services or another business that conducts 
aeronautical activities at an airport may not be included in 
the percentage goal of paragraph (1) of this subsection for 
participation of small business concerns at the airport.
  (8) Not later than April 29, 1993, the Secretary of 
Transportation shall prescribe regulations to carry out this 
subsection.
  (f) Availability of Amounts.--An amount deposited in the 
Airport and Airway Trust Fund under--
          (1) subsection (c)(2)(A)(iii) of this section is 
        available to the Secretary of Transportation to make a 
        grant for airport development or airport planning under 
        section 47104 of this title;
          (2) subsection (c)(2)(B)(iii) of this section is 
        available to the Secretary--
                  (A) to make a grant for a purpose described 
                in section 47115(b) of this title; and
                  (B) for use under section 47114(d)(2) of this 
                title at another airport in the State in which 
                the land was disposed of under subsection 
                (c)(2)(B)(ii) of this section; and
          (3) subsection (c)(2)(B)(iii) of this section is in 
        addition to an amount made available to the Secretary 
        under section 48103 of this title and not subject to 
        apportionment under section 47114 of this title.
  (g) Ensuring Compliance.--(1) To ensure compliance with this 
section, the Secretary of Transportation--
          (A) shall prescribe requirements for sponsors that 
        the Secretary considers necessary; and
          (B) may make a contract with a public agency.
  (2) The Secretary of Transportation may approve an 
application for a project grant only if the Secretary is 
satisfied that the requirements prescribed under paragraph 
(1)(A) of this subsection have been or will be met.
  (h) Modifying Assurances and Requiring Compliance With 
Additional Assurances.--
          (1) In general.--Subject to paragraph (2), before 
        modifying an assurance required of a person receiving a 
        grant under this subchapter and in effect after 
        December 29, 1987, or to require compliance with an 
        additional assurance from the person, the Secretary of 
        Transportation must--
                  (A) publish notice of the proposed 
                modification in the Federal Register; and
                  (B) provide an opportunity for comment on the 
                proposal.
          (2) Public notice before waiver of aeronautical land-
        use assurance.--Before modifying an assurance under 
        subsection (c)(2)(B) that requires any property to be 
        used for an aeronautical purpose, the Secretary must 
        provide notice to the public not less than 30 days 
        before making such modification.
  (i) Relief From Obligation To Provide Free Space.--When a 
sponsor provides a property interest in a land or water area or 
a building that the Secretary of Transportation uses to 
construct a facility at Government expense, the Secretary may 
relieve the sponsor from an obligation in a contract made under 
this chapter, the Airport and Airway Development Act of 1970, 
or the Federal Airport Act to provide free space to the 
Government in an airport building, to the extent the Secretary 
finds that the free space no longer is needed to carry out 
activities related to air traffic control or navigation.
  (j) Use of Revenue in Hawaii.--(1) In this subsection--
          (A) ``duty-free merchandise'' and ``duty-free sales 
        enterprise'' have the same meanings given those terms 
        in section 555(b)(8) of the Tariff Act of 1930 (19 
        U.S.C. 1555(b)(8)).
          (B) ``highway'' and ``Federal-aid system'' have the 
        same meanings given those terms in section 101(a) of 
        title 23.
  (2) Notwithstanding subsection (b)(1) of this section, Hawaii 
may use, for a project for construction or reconstruction of a 
highway on a Federal-aid system that is not more than 10 miles 
by road from an airport and that will facilitate access to the 
airport, revenue from the sales at off-airport locations in 
Hawaii of duty-free merchandise under a contract between Hawaii 
and a duty-free sales enterprise. However, the revenue 
resulting during a Hawaiian fiscal year may be used only if the 
amount of the revenue, plus amounts Hawaii receives in the 
fiscal year from all other sources for costs Hawaii incurs for 
operating all airports it operates and for debt service related 
to capital projects for the airports (including interest and 
amortization of principal costs), is more than 150 percent of 
the projected costs for the fiscal year.
  (3)(A) Revenue from sales referred to in paragraph (2) of 
this subsection in a Hawaiian fiscal year that Hawaii may use 
may not be more than the amount that is greater than 150 
percent as determined under paragraph (2).
  (B) The maximum amount of revenue Hawaii may use under 
paragraph (2) of this subsection is $250,000,000.
  (4) If a fee imposed or collected for rent, landing, or 
service from an aircraft operator by an airport operated by 
Hawaii is increased during the period from May 4, 1990, through 
December 31, 1994, by more than the percentage change in the 
Consumer Price Index of All Urban Consumers for Honolulu, 
Hawaii, that the Secretary of Labor publishes during that 
period and if revenue derived from the fee increases because 
the fee increased, the amount under paragraph (3)(B) of this 
subsection shall be reduced by the amount of the projected 
revenue increase in the period less the part of the increase 
attributable to changes in the Index in the period.
  (5) Hawaii shall determine costs, revenue, and projected 
revenue increases referred to in this subsection and shall 
submit the determinations to the Secretary of Transportation. A 
determination is approved unless the Secretary disapproves it 
not later than 30 days after it is submitted.
  (6) Hawaii is not eligible for a grant under section 47115 of 
this title in a fiscal year in which Hawaii uses under 
paragraph (2) of this subsection revenue from sales referred to 
in paragraph (2). Hawaii shall repay amounts it receives in a 
fiscal year under a grant it is not eligible to receive because 
of this paragraph to the Secretary of Transportation for 
deposit in the discretionary fund established under section 
47115.
  (7)(A) This subsection applies only to revenue from sales 
referred to in paragraph (2) of this subsection from May 5, 
1990, through December 30, 1994, and to amounts in the Airport 
Revenue Fund of Hawaii that are attributable to revenue before 
May 4, 1990, on sales referred to in paragraph (2).
  (B) Revenue from sales referred to in paragraph (2) of this 
subsection from May 5, 1990, through December 30, 1994, may be 
used under paragraph (2) in any Hawaiian fiscal year, including 
a Hawaiian fiscal year beginning after December 31, 1994.
  (k) 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 operators of airports, when 
        entering into new or revised agreements or otherwise 
        establishing rates, charges, and fees, have undertaken 
        reasonable efforts to make their particular airports as 
        self-sustaining as possible under the circumstances 
        existing at such airports.
          (4) Administrative safeguards.--Policies and 
        procedures to be established pursuant to paragraph (1) 
        shall mandate internal controls, auditing requirements, 
        and increased levels of Department of Transportation 
        personnel sufficient to respond fully and promptly to 
        complaints received regarding possible violations of 
        subsections (a)(13) and (b) of this section and grant 
        assurances made under such subsections and to alert the 
        Secretary to such possible violations.
          (5) Statute of limitations.--In addition to the 
        statute of limitations specified in subsection (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 expense is incurred; and
                  (B) any amount of airport funds that are used 
                to make a payment or reimbursement as described 
                in subparagraph (A) after the date specified in 
                that subparagraph shall be considered to be an 
                illegal diversion of airport revenues that is 
                subject to subsection (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 illegal 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
                  (C) conduct a hearing and render a final 
                determination concerning whether the illegal 
                diversion of airport revenues asserted in the 
                audit or report occurred.
          (2) Notification.--Upon making such a finding, the 
        Secretary, acting through the Administrator, shall 
        provide written notification to the sponsor and the 
        airport of--
                  (A) the finding; and
                  (B) the obligations of the sponsor to 
                reimburse the airport involved under this 
                paragraph.
          (3) Administrative action.--The Secretary may 
        withhold any amount from funds that would otherwise be 
        made available to the sponsor, including funds that 
        would otherwise be made available to a State, 
        municipality, or political subdivision thereof 
        (including any multimodal transportation agency or 
        transit authority of which the sponsor is a member 
        entity) as part of an apportionment or grant made 
        available pursuant to this title, if the sponsor--
                  (A) receives notification that the sponsor is 
                required to reimburse an airport; and
                  (B) has had an opportunity to reimburse the 
                airport, but has failed to do so.
          (4) Civil action.--If a sponsor fails to pay an 
        amount specified under paragraph (3) during the 180-day 
        period beginning on the date of notification and the 
        Secretary is unable to withhold a sufficient amount 
        under paragraph (3), the Secretary, acting through the 
        Administrator, may initiate a civil action under which 
        the sponsor shall be liable for civil penalty in an 
        amount equal to the illegal diversion in question plus 
        interest (as determined under subsection (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 determined by the 
        Secretary of the Treasury) for the applicable calendar 
        year, rounded to the nearest whole percentage point.
          (2) Adjustment of interest rates.--If, with respect 
        to a calendar quarter, the average investment interest 
        rate for tax and loan accounts of the Department of the 
        Treasury exceeds the average investment interest rate 
        for the immediately preceding calendar quarter, rounded 
        to the nearest whole percentage point, the Secretary of 
        the Treasury may adjust the interest rate charged under 
        this subsection in a manner that reflects that change.
          (3) Accrual.--Interest assessed under subsection (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 expenditures by the sponsor for the benefit of the 
airport, interest on that amount shall be determined in the 
same manner as provided in paragraphs (1) through (4) of 
subsection (o), except that the amount of any interest assessed 
under this subsection shall be determined from the date on 
which the Secretary or the Administrator makes that 
determination.
  (q) Notwithstanding any written assurances prescribed in 
subsections (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 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 and does not contribute to 
        significant passenger delays as defined by DOT/FAA in 
        the ``Airport Capacity Benchmark Report 2001''.
  (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.]

           *       *       *       *       *       *       *

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

  (a) General.--Except as provided in [subsection (b) or 
subsection (c)] subsection (b), (c), or (e) 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 increase the Government's share of 
                allowable costs of the project.
          (2) Limitation.--The Government's share of allowable 
        project costs determined under this subsection shall 
        not exceed the lesser of 93.75 percent or the highest 
        percentage Government share applicable to any project 
        in any State under subsection (b).
  (d) Special Rule for Privately Owned Reliever Airports.--If a 
privately owned reliever airport contributes any lands, 
easements, or rights-of-way to carry out a project under this 
subchapter, the current fair market value of such lands, 
easements, or rights-of-way shall be credited toward the non-
Federal share of allowable project costs.
  (e) Special Rule for Transition From Small Hub to Medium Hub 
Status.--If the status of a small hub primary airport changes 
to a medium hub primary airport, the United States Government's 
share of allowable project costs for the airport may not exceed 
95 percent for 2 fiscal years following such change in hub 
status.

Sec. 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 maximum 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 
        development 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.] 
        project; or
          (3) necessarily incurred in anticipation of severe 
        weather.
  [(d) Terminal Development Costs.--(1) The Secretary may 
decide that the cost of terminal development (including multi-
modal 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) the airport does not have more than .05 percent 
        of the total annual passenger boardings in the United 
        States; and
          [(B) the sponsor certifies that any needed airport 
        development project affecting safety, security, or 
        capacity will not be deferred because of the 
        Secretary's approval.]
  (d) Relocation of Airport-Owned Facilities.--The Secretary 
may determine that the costs of relocating or replacing an 
airport-owned facility are allowable for an airport development 
project at an airport only if--
          (1) the Government's share of such costs is paid with 
        funds apportioned to the airport sponsor under sections 
        47114(c)(1) or 47114(d)(2);
          (2) the Secretary determines that the relocation or 
        replacement is required due to a change in the 
        Secretary's design standards; and
          (3) the Secretary determines that the change is 
        beyond the control of the airport sponsor.
  (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,] facilities, as defined by 
section 47102, 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.

Sec. 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.
  (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 Revenues.--
If, after notice and opportunity for a hearing, the Secretary 
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 sponsor to take corrective action to cure such 
violation, and such corrective 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 modification to an existing grant 
that would increase the amount of funds made available under 
this chapter to the airport [sponsor, and withhold 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.] sponsor. A sponsor shall 
not propose collection or use of passenger facility charges for 
any new projects under paragraphs (3) through (6) of section 
40117(c) unless the Secretary determines that the sponsor has 
taken corrective action to address the violation and 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.

Sec. 47112. Carrying out airport development projects

  (a) Construction Work.--The Secretary of Transportation may 
inspect and approve construction work for an airport 
development project carried out under a grant agreement under 
this subchapter. The construction work must be carried out in 
compliance with regulations the Secretary prescribes. The 
regulations shall require the sponsor to make necessary cost 
and progress reports on the project. The regulations may amend 
or modify a contract related to the project only if the 
contract was made with actual notice of the regulations.
  (b) Prevailing Wages.--A contract for more than $2,000 
involving labor for an airport development project carried out 
under a grant agreement under this subchapter must require 
contractors to pay labor minimum wage rates as determined by 
the Secretary of Labor under sections 3141-3144, 3146, and 3147 
of title 40. The minimum rates must be included in the bids for 
the work and in the invitation for those bids.
  (c) Veterans' Preference.--(1) In this subsection--
          (A) ``disabled veteran'' has the same meaning given 
        that term in section 2108 of title 5.
          (B) ``Vietnam-era veteran'' means an individual who 
        served on active duty (as defined in section 101 of 
        title 38) in the armed forces for more than 180 
        consecutive days, any part of which occurred after 
        August 4, 1964, and before May 8, 1975, and who was 
        [separated from] discharged or released from active 
        duty in the armed forces under honorable conditions.
          (C) ``Afghanistan-Iraq war veteran'' means an 
        individual who served on active duty, as defined by 
        section 101(21) of title 38, at any time in the armed 
        forces for a period of more than 180 consecutive days, 
        any part of which occurred during the period beginning 
        on September 11, 2001, and ending on the date 
        prescribed by Presidential proclamation or by law as 
        the last date of Operation Iraqi Freedom.
  (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] veterans, 
Afghanistan-Iraq war veterans, and disabled veterans when they 
are available and qualified for the employment.

           *       *       *       *       *       *       *

Sec. 47114. Apportionments

  (a) Definition.--In this section, ``amount subject to 
apportionment'' means the amount newly made available under 
section 48103 of this title for a fiscal year.
  (b) Apportionment Date.--On the first day of each fiscal 
year, the Secretary of Transportation shall apportion the 
amount subject to apportionment for that fiscal year as 
provided in this section.
  (c) Amounts Apportioned to Sponsors.--
          (1) Primary airports.--
                  (A) Apportionment.--The Secretary shall 
                apportion to the sponsor of each primary 
                airport for each fiscal year an amount equal 
                to--
                          (i) $7.80 for each of the first 
                        50,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (ii) $5.20 for each of the next 
                        50,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (iii) $2.60 for each of the next 
                        400,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (iv) $.65 for each of the next 
                        500,000 passenger boardings at the 
                        airport during the prior calendar year; 
                        and
                          (v) $.50 for each additional 
                        passenger boarding at the airport 
                        during the prior calendar year.
                  (B) Minimum and maximum apportionments.--Not 
                less than $650,000 nor more than $22,000,000 
                may be apportioned under subparagraph (A) of 
                this paragraph to an airport sponsor for a 
                primary airport for each fiscal year.
                  (C) Special rule.--In any fiscal year in 
                which the total amount made available under 
                section 48103 is $3,200,000,000 or more--
                          (i) the amount to be apportioned to a 
                        sponsor under subparagraph (A) shall be 
                        increased by doubling the amount that 
                        would otherwise be apportioned;
                          (ii) the minimum apportionment to a 
                        sponsor under subparagraph (B) shall be 
                        $1,000,000 rather than $650,000; and
                          (iii) the maximum apportionment to a 
                        sponsor under subparagraph (B) shall be 
                        $26,000,000 rather than $22,000,000.
                  (D) New airports.--Notwithstanding 
                subparagraph (A), the Secretary shall apportion 
                on the first day of the first fiscal year 
                following the official opening of a new airport 
                with scheduled passenger air transportation an 
                amount equal to the minimum amount set forth in 
                subparagraph (B) or (C), as appropriate, to the 
                sponsor of such airport.
                  (E) Use of previous fiscal year's 
                apportionment.--Notwithstanding subparagraph 
                (A), the Secretary may apportion to an airport 
                sponsor in a fiscal year an amount equal to the 
                amount apportioned to that sponsor in the 
                previous fiscal year if the Secretary finds 
                that--
                          (i) passenger boardings at the 
                        airport fell below 10,000 in the 
                        calendar year used to calculate the 
                        apportionment;
                          (ii) the airport had at least 10,000 
                        passenger boardings in the calendar 
                        year prior to the calendar year used to 
                        calculate apportionments to airport 
                        sponsors in a fiscal year; and
                          (iii) the cause of the shortfall in 
                        passenger boardings was a temporary but 
                        significant interruption in service by 
                        an air carrier to that [airport due to 
                        an employment action, natural disaster, 
                        or other event unrelated to the demand 
                        for air transportation at the affected 
                        airport.] airport--
                                  (I) if it is included in the 
                                essential air service program 
                                in the calendar year in which 
                                the passenger boardings fall 
                                below 9,700;
                                  (II) if at the airport the 
                                total passenger boardings from 
                                large certificated air carriers 
                                (as defined in part 241 of 
                                title 14, Code of Federal 
                                Regulations) conducting 
                                scheduled plus nonscheduled 
                                service totals 10,000 or more 
                                in the calendar year in which 
                                the airport does not meet the 
                                criteria for a primary airport 
                                under section 47102 of this 
                                title; or
                                  (III) if the documented 
                                interruption to scheduled 
                                service at the airport was 
                                equal to 4 percent of the 
                                scheduled flights in calendar 
                                year 2006, exclusive of 
                                cancellations due to severe 
                                weather conditions, and the 
                                airport is served by a single 
                                air carrier.
                  (F) For fiscal years 2009 through 2012, with 
                regard to an airport that meets the criteria 
                described in paragraph (E)(iii), if the 
                calendar year passenger boardings for the 
                calculation of apportionments under this 
                section fall below 10,000 passenger boardings, 
                the Secretary may use the passenger boardings 
                for the last fiscal year in which passenger 
                boardings exceeded 10,000 for calculating 
                apportionments.
                  [(F)] (G) 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)] (H) Special rule for [fiscal year 
                2006.--] fiscal years 2008 through 2011._
                Notwithstanding subparagraph (A) and the 
                absence of scheduled passenger aircraft service 
                at an airport, the Secretary may apportion in 
                [fiscal year 2006] each of fiscal years 2008 
                through 2011 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;]
                          (i) the average annual passenger 
                        boardings at the airport for calendar 
                        years 2004 through 2006 were below 
                        10,000 per year;
                          (ii) the airport had at least 10,000 
                        passenger boardings and scheduled 
                        passenger aircraft service in either 
                        calendar year [2000 or 2001;] 2003; 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.
          (2) Cargo airports.--
                  (A) Apportionment.--Subject to subparagraph 
                (D), the Secretary shall apportion an amount 
                equal to [3.5 percent] 4.0 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.
          (3) Airports served by large certificated carriers.--
                  (A) Apportionment.--The Secretary shall 
                apportion to the sponsor of an airport that 
                received scheduled air service from a large 
                certificated air carrier (as defined in part 
                241 of title 14, Code of Federal Regulations) 
                an amount equal to the minimum apportionment 
                specified in paragraph (1) of this subsection.
                  (B) Limitation.--The apportionment under 
                subparagraph (A) shall be made available to an 
                airport sponsor only if--
                          (i) the large certificated air 
                        carrier began scheduled air service at 
                        the airport in May 2006 and ceased 
                        scheduled air service at the airport in 
                        October 2006; and
                          (ii) the Secretary determines that 
                        the airport had more than 10,000 
                        passenger boardings in the preceding 
                        calendar year, based on data submitted 
                        to the Secretary under part 241 of 
                        title 14, Code of Federal Regulations.
  (d) Amounts Apportioned for General Aviation Airports.--
          (1) Definitions.--In this subsection, the following 
        definitions apply:
                  (A) Area.--The term ``area'' includes land 
                and water.
                  (B) Population.--The term ``population'' 
                means the population stated in the latest 
                decennial census of the United States.
          (2) Apportionment.--Except as provided in paragraph 
        (3), the Secretary shall apportion to the States 18.5 
        percent of the amount subject to apportionment for each 
        fiscal year as follows:
                  (A) 0.66 percent of the apportioned amount to 
                Guam, American Samoa, the Northern Mariana 
                Islands, and the Virgin Islands.
                  (B) Except as provided in paragraph (4), 
                49.67 percent of the apportioned amount for 
                airports, excluding primary airports but 
                including reliever and nonprimary commercial 
                service airports, in States not named in 
                subparagraph (A) in the proportion that the 
                population of each of those States bears to the 
                total population of all of those States.
                  (C) Except as provided in paragraph (4), 
                49.67 percent of the apportioned amount for 
                airports, excluding primary airports but 
                including reliever and nonprimary commercial 
                service airports, in States not named in 
                subparagraph (A) in the proportion that the 
                area of each of those States bears to the total 
                area of all of those States.
          (3) Special rule.--In any fiscal year in which the 
        total amount made available under section 48103 is 
        $3,200,000,000 or more, rather than making an 
        apportionment under paragraph (2), the Secretary shall 
        apportion 20 percent of the amount subject to 
        apportionment for each fiscal year as follows:
                  (A) To each airport, excluding primary 
                airports but including reliever and nonprimary 
                commercial service airports, in States the 
                lesser of--
                          (i) $150,000; or
                          (ii) 1/5 of the most recently 
                        published estimate of the 5-year costs 
                        for airport improvement for the 
                        airport, as listed in the national plan 
                        of integrated airport systems developed 
                        by the Federal Aviation Administration 
                        under section 47103.
                  (B) Any remaining amount to States as 
                follows:
                          (i) 0.62 percent of the remaining 
                        amount to Guam, American Samoa, the 
                        Commonwealth of the Northern Mariana 
                        Islands, and the Virgin Islands.
                          (ii) Except as provided in paragraph 
                        (4), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the population of 
                        each of those States bears to the total 
                        population of all of those States.
                          (iii) Except as provided in paragraph 
                        (4), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the area of each of 
                        those States bears to the total area of 
                        all of those States.
          (4) Airports in Alaska, Puerto Rico, and Hawaii.--An 
        amount apportioned under paragraph (2) or (3) to 
        Alaska, Puerto Rico, or Hawaii for airports in such 
        State may be made available by the Secretary for any 
        public airport in those respective jurisdictions.
          (5) Use of state highway specifications.--
                  (A) In general.--The Secretary may permit the 
                use of State highway specifications for 
                airfield pavement construction using funds made 
                available under this subsection at nonprimary 
                airports with runways of 5,000 feet or shorter 
                serving aircraft that do not exceed 60,000 
                pounds gross weight if the Secretary determines 
                that--
                          (i) safety will not be negatively 
                        affected; and
                          (ii) the life of the pavement will 
                        not be shorter than it would be if 
                        constructed using Administration 
                        standards.
                  (B) Limitation.--An airport may not seek 
                funds under this subchapter for runway 
                rehabilitation or reconstruction of any such 
                airfield pavement constructed using State 
                highway specifications for a period of 10 years 
                after construction is completed unless the 
                Secretary determines that the rehabilitation or 
                reconstruction is required for safety reasons.
          (6) Integrated airport system planning.--
        Notwithstanding any other provision of this subsection, 
        funds made available under this subsection may be used 
        for integrated airport system planning that encompasses 
        one or more primary airports.
  (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 
                application 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 
                apportionment 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.

Sec. 47115. Discretionary fund

  (a) Existence and Amounts in Fund.--The Secretary of 
Transportation has a discretionary fund. The fund consists of--
          (1) amounts subject to apportionment for a fiscal 
        year that are not apportioned under section 47114(c)-
        (e) of this title; and
          (2) 12.5 percent of amounts not apportioned under 
        section 47114 of this title because of section 
        47114(f).
  (b) Availability of Amounts.--Subject to subsection (c) of 
this section and section 47117(e) of this title, the fund is 
available for making grants for any purpose for which amounts 
are made available under section 48103 of this title that the 
Secretary considers most appropriate to carry out this 
subchapter.
  (c) Minimum Percentage for Primary and Reliever Airports.--At 
least 75 percent of the amount in the fund and distributed by 
the Secretary in a fiscal year shall be used for making 
grants--
          (1) to preserve and enhance capacity, safety, and 
        security at primary and reliever airports; and
          (2) to carry out airport noise compatibility planning 
        and programs at primary and reliever airports.
  (d) Considerations.--
          (1) For capacity enhancement projects.--In selecting 
        a project for a grant to preserve and improve capacity 
        funded in whole or in part from the fund, the Secretary 
        shall consider--
                  (A) the effect that the project will have on 
                overall national transportation system 
                capacity;
                  (B) the benefit and cost of the project, 
                including, in the case of a project at a 
                reliever airport, the number of operations 
                projected to be diverted from a primary airport 
                to the reliever airport as a result of the 
                project, as well as the cost savings projected 
                to be realized by users of the local airport 
                system;
                  (C) the financial commitment from non-United 
                States Government sources to preserve or 
                improve airport capacity;
                  (D) the airport improvement priorities of the 
                States to the extent such priorities are not in 
                conflict with subparagraphs (A) and (B);
                  (E) the projected growth in the number of 
                passengers or aircraft that will be using the 
                airport at which the project will be carried 
                out; and
                  (F) the ability of the project to foster 
                United States competitiveness in securing 
                global air cargo activity at a United States 
                airport.
          (2) For all projects.--In selecting a project for a 
        grant under this section, the Secretary shall consider 
        among other factors whether--
                  (A) funding has been provided for all other 
                projects qualifying for funding during the 
                fiscal year under this chapter that have 
                attained a higher score under the numerical 
                priority system employed by the Secretary in 
                administering the fund; and
                  (B) the sponsor will be able to commence the 
                work identified in the project application in 
                the fiscal year in which the grant is made or 
                within 6 months after the grant is made, 
                whichever is later.
  (e) Waiving Percentage Requirement.--If the Secretary decides 
the Secretary cannot comply with the percentage requirement of 
subsection (c) of this section in a fiscal year because there 
are insufficient qualified grant applications to meet that 
percentage, the amount the Secretary determines will not be 
distributed as required by subsection (c) is available for 
obligation during the fiscal year without regard to the 
requirement.
  (f) Consideration of Diversion of Revenues in Awarding 
Discretionary Grants.--
          (1) General rule.--Subject to paragraph (2), in 
        deciding whether or not to distribute funds to an 
        airport from the discretionary funds established by 
        subsection (a) of this section and section 47116 of 
        this title, the Secretary shall consider as a factor 
        militating against the distribution of such funds to 
        the airport the fact that the airport is using revenues 
        generated by the airport or by local taxes on aviation 
        fuel for purposes other than capital or operating costs 
        of the airport or the local airports system or other 
        local facilities which are owned or operated by the 
        owner or operator of the airport and directly and 
        substantially related to the actual air transportation 
        of passengers or property.
          (2) Required finding.--Paragraph (1) shall apply only 
        when the Secretary finds that the amount of revenues 
        used by the airport for purposes other than capital or 
        operating costs in the airport's fiscal year preceding 
        the date of the application for discretionary funds 
        exceeds the amount of such revenues in the airport's 
        first fiscal year ending after August 23, 1994, 
        adjusted by the Secretary for changes in the Consumer 
        Price Index of All Urban Consumers published by the 
        Bureau of Labor Statistics of the Department of Labor.
  (g) Minimum Amount To Be Credited.--
          (1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available 
        under section 48103 of this title, an amount that is at 
        least equal to the sum [of--
                  [(A) $148,000,000; plus
                  [(B) the total amount required from the fund 
                to carry out in the fiscal year letters of 
                intent issued before January 1, 1996, under 
                section 47110(e) of this title or the Airport 
                and Airway Improvement Act of 1982.
        The amount credited is exclusive of amounts that have 
        been apportioned in a prior fiscal year under section 
        47114 of this title and that remain available for 
        obligation.] of $520,000,000.The amount credited is 
        exclusive of amounts that have been apportioned in a 
        prior fiscal year under section 47114 of this title and 
        that remain available for obligation.
          (2) Reduction of apportionments.--In a fiscal year in 
        which the amount credited under subsection (a) is less 
        than the minimum amount to be credited under paragraph 
        (1), the total amount calculated under paragraph (3) 
        shall be reduced by an amount that, when credited to 
        the fund, together with the amount credited under 
        subsection (a), equals such minimum amount.
          (3) Amount of reduction.--For a fiscal year, the 
        total amount available to make a reduction to carry out 
        paragraph (2) is the total of the amounts determined 
        under sections 47114(c)(1)(A), 47114(c)(2), 47114(d), 
        and 47117(e) of this title. Each amount shall be 
        reduced by an equal percentage to achieve the 
        reduction.
  (h) Priority for Letters of Intent.--In making grants in a 
fiscal year with funds made available under this section, the 
Secretary shall fulfill intentions to obligate under section 
47110(e).
  (i) Considerations for Project Under Expanded Security 
Eligibility.--In order to assure that funding under this 
subchapter is provided to the greatest needs, the Secretary, in 
selecting a project described in section 47102(3)(J) for a 
grant, shall consider the non-federal resources available to 
sponsor, the use of such non-federal resources, and the degree 
to which the sponsor is providing increased funding for the 
project.
  (j) Marshall Islands, Micronesia, and Palau.--For fiscal 
years 2004 through [2007,] 2011, the sponsors of airports 
located in the Republic of the Marshall Islands, Federated 
States of Micronesia, and Republic of Palau shall be eligible 
for grants under this section and section 47116.

           *       *       *       *       *       *       *

Sec. 47117. Use of apportioned amounts

  (a) Grant Purpose.--Except as provided in this section, an 
amount apportioned under section 47114(c)(1) or (d)(2) of this 
title is available for making grants for any purpose for which 
amounts are made available under section 48103 of this title.
  (b) Period of Availability.--An amount apportioned under 
section 47114 of this title is available to be obligated for 
grants under the apportionment only during the fiscal year for 
which the amount was apportioned and the 2 fiscal years 
immediately after that year or the 3 fiscal years immediately 
following that year in the case of a nonhub airport or any 
airport that is not a commercial service airport. If the amount 
is not obligated under the apportionment within that time, it 
shall be added to the discretionary fund.
  (c) Primary Airports.--(1) An amount apportioned to a sponsor 
of a primary airport under section 47114(c)(1) of this title is 
available for grants for any public-use airport of the sponsor 
included in the national plan of integrated airport systems.
  (2) Waiver.--A sponsor of an airport may make an agreement 
with the Secretary of Transportation waiving the sponsor's 
claim to any part of the amount apportioned for the airport 
under sections 47114(c) and 47114(d)(3)(A) if the Secretary 
agrees to make the waived amount available for a grant for 
another public-use airport in the same State or geographical 
area as the airport, as determined by the Secretary.
  (d) State Use.--An amount apportioned to a State under--
          (1) section 47114(d)(2)(A) of this title is available 
        for grants for airports located in the State; and
          (2) section 47114(d)(2)(B) or (C) of this title is 
        available for grants for airports described in section 
        47114(d)(2)(B) or (C) and located in the State.
  (e) Special Apportionment Categories.--(1) The Secretary 
shall use amounts available to the discretionary fund under 
section 47115 of this title for each fiscal year as follows:
          (A) At least [35 percent] $300,000,000 for grants for 
        airport noise compatibility planning under section 
        47505(a)(2), for carrying out noise compatibility 
        programs under section 47504(c), for noise mitigation 
        projects approved in an environmental record of 
        decision for an airport development project under this 
        title, for compatible land use planning and projects 
        carried out by State and local governments under 
        section 47141, [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.).] et seq.), and for water quality mitigation 
        projects to comply with the Act of June 30, 1948 (33 
        U.S.C. 1251 et seq.) approved in an environmental 
        record of decision for an airport development project 
        under this title. The Secretary may count the amount of 
        grants made for such planning and programs with funds 
        apportioned under section 47114 in that fiscal year in 
        determining whether or not [such 35 percent 
        requirement] the requirements of the preceding sentence 
        are 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 airport to an airport with 20,000 
                hours of annual delays in commercial passenger 
                aircraft takeoffs and landings.
  (2) If the Secretary decides that an amount required to be 
used for grants under paragraph (1) of this subsection cannot 
be used for a fiscal year because there are insufficient 
qualified grant applications, the amount the Secretary 
determines cannot be used is available during the fiscal year 
for grants for other airports or for other purposes for which 
amounts are authorized for grants under section 48103 of this 
title.
  (3) Priority.--The Secretary shall give priority in making 
grants under paragraph (1)(A) to applications for airport noise 
compatibility planning and programs at and around--
          (A) Chicago O'Hare International Airport;
          (B) LaGuardia Airport;
          (C) John F. Kennedy International Airport; and
          (D) Ronald Reagan Washington National Airport.
  (f) Discretionary Use of Apportionments.--
          (1) In general.--Subject to paragraph (2), if the 
        Secretary finds that all or part of an amount of an 
        apportionment under section 47114 is not required 
        during a fiscal year to fund a grant for which the 
        apportionment may be used, the Secretary may use during 
        such fiscal year the amount not so required to make 
        grants for any purpose for which grants may be made 
        under section 48103. The finding may be based on the 
        notifications that the Secretary receives under section 
        47105(f) or on other information received from airport 
        sponsors.
          (2) Restoration of apportionments.--
                  (A) In general.--If the fiscal year for which 
                a finding is made under paragraph (1) with 
                respect to an apportionment is not the last 
                fiscal year of availability of the 
                apportionment under subsection (b), the 
                Secretary shall restore to the apportionment an 
                amount equal to the amount of the apportionment 
                used under paragraph (1) for a discretionary 
                grant whenever a sufficient amount is made 
                available under section 48103.
                  (B) Period of availability.--If restoration 
                under this paragraph is made in the fiscal year 
                for which the finding is made or the succeeding 
                fiscal year, the amount restored shall be 
                subject to the original period of availability 
                of the apportionment under subsection (b). If 
                the restoration is made thereafter, the amount 
                restored shall remain available in accordance 
                with subsection (b) for the original period of 
                availability of the apportionment plus the 
                number of fiscal years during which a 
                sufficient amount was not available for the 
                restoration.
          (3) Newly available amounts.--
                  (A) Restored amounts to be unavailable for 
                discretionary grants.--Of an amount newly 
                available under section 48103 of this title, an 
                amount equal to the amounts restored under 
                paragraph (2) shall not be available for 
                discretionary grant obligations under section 
                47115.
                  (B) Use of remaining amounts.--Subparagraph 
                (A) does not impair the Secretary's authority 
                under paragraph (1), after a restoration under 
                paragraph (2), to apply all or part of a 
                restored amount that is not required to fund a 
                grant under an apportionment to fund 
                discretionary grants.
          (4) Limitations on obligations apply.--Nothing in 
        this subsection shall be construed to authorize the 
        Secretary to incur grant obligations under section 
        47104 for a fiscal year in an amount greater than the 
        amount made available under section 48103 for such 
        obligations for such fiscal year.
  (g) Limiting Authority of Secretary.--The authority of the 
Secretary to make grants during a fiscal year from amounts that 
were apportioned for a prior fiscal year and remain available 
for approved airport development project grants under 
subsection (b) of this section may be impaired only by a law 
enacted after September 3, 1982, that expressly limits that 
authority.

Sec. 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.] delays; or
          (3) be critical to the safety of commercial, 
        military, or general aviation in trans-oceanic flights.
  (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.--
  (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).

           *       *       *       *       *       *       *

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

  (a) Government Relief From Liability.--The Secretary of 
Transportation shall ensure that an agreement under this 
subchapter with a qualified entity (as determined by the 
Secretary), State, or a political subdivision of a State to 
allow the entity, State, or subdivision to operate an airport 
facility relieves the United States Government from any 
liability arising out of, or related to, acts or omissions of 
employees of the entity, State, or subdivision in operating the 
airport facility.
  (b) Air Traffic Control Contract Program.--(1)(A) The 
Secretary shall continue the low activity (Visual Flight Rules) 
level I air traffic control tower contract program established 
under subsection (a) of this section for towers existing on 
December 30, 1987, and extend the program to other towers as 
practicable.
  (B) If the Secretary determines that a tower already 
operating under this program has a benefit to cost ratio of 
less than 1.0, the airport sponsor or State or local government 
having jurisdiction over the airport shall not be required to 
pay the portion of the costs that exceeds the benefit for a 
period of 18 months after such determination is made.
  (C) If the Secretary finds that all or part of an amount made 
available to carry out the program continued under this 
paragraph is not required during a fiscal year, the Secretary 
may use during such fiscal year the amount not so required to 
carry out the program established under paragraph (3) of this 
section.
  (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-to-cost ratio 
                using actual site-specific contract tower 
                operating costs in any case in which there is 
                an operating air traffic control tower, as 
                required for eligibility under the Contract 
                Tower Program.
          (C) Priority.--In selecting facilities to participate 
        in the program, the Secretary shall give priority to 
        the following facilities:
                  (i) Air traffic control towers that are 
                participating in the Contract Tower Program but 
                have been notified that they will be terminated 
                from such program because the Secretary has 
                determined that the benefit-to-cost ratio for 
                their continuation in such program is less than 
                1.0.
                  (ii) Air traffic control towers that the 
                Secretary determines have a benefit-to-cost 
                ratio of at least .50.
                  (iii) Air traffic control towers of the 
                Federal Aviation Administration that are closed 
                as a result of the air traffic controllers 
                strike in 1981.
                  (iv) Air traffic control towers located at 
                airports or points at which an air carrier is 
                receiving compensation under the essential air 
                service program under this chapter.
                  (v) Air traffic control towers located at 
                airports that are prepared to assume partial 
                responsibility for maintenance costs.
                  (vi) Air traffic control towers located at 
                airports with safety or operational problems 
                related to topography, weather, runway 
                configuration, or mix of aircraft.
                  (vii) Air traffic control towers located at 
                an airport at which the community has been 
                operating the tower at its own expense.
          (D) Costs exceeding benefits.--If the costs of 
        operating an air traffic tower under the program exceed 
        the benefits, the airport sponsor or State or local 
        government having jurisdiction over the airport shall 
        pay the portion of the costs that exceed such benefit.
          (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 
        $8,500,000 for fiscal year 2008, $9,000,000 for fiscal 
        year 2009, $9,500,000 for fiscal year 2010, and 
        $10,000,000 for fiscal year 2011 may be used to carry 
        out this paragraph. If the Secretary finds that all or 
        part of an amount made available under this 
        subparagraph is not required during a fiscal year to 
        carry out this paragraph, the Secretary may use during 
        such fiscal year the amount not so required to carry 
        out the program continued under paragraph (b)(1) of 
        this section.
  (4) Construction of air traffic control towers.--
          (A) Grants.--The Secretary may provide grants to a 
        sponsor of--
                  (i) a primary airport--
                          (I) from amounts made available under 
                        sections 47114(c)(1) and 47114(c)(2) 
                        for the construction or improvement of 
                        a nonapproach control tower, as defined 
                        by the Secretary, and for the 
                        acquisition and installation of air 
                        traffic control, communications, and 
                        related equipment to be used in that 
                        tower;
                          (II) from amounts made available 
                        under sections 47114(c)(1) and 
                        47114(c)(2) for reimbursement for the 
                        cost of construction or improvement of 
                        a nonapproach control tower, as defined 
                        by the Secretary, incurred after 
                        October 1, 1996, if the sponsor 
                        complied with the requirements of 
                        sections 47107(e), 47112(b), and 
                        47112(c) in constructing or improving 
                        that tower; and
                          (III) from amounts made available 
                        under sections 47114(c)(1) and 
                        47114(c)(2) for reimbursement for the 
                        cost of acquiring and installing in 
                        that tower air traffic control, 
                        communications, and related equipment 
                        that was acquired or installed after 
                        October 1, 1996; and
                  (ii) a public-use airport that is not a 
                primary airport--
                          (I) from amounts made available under 
                        sections 47114(c)(2) and 47114(d) for 
                        the construction or improvement of a 
                        nonapproach control tower, as defined 
                        by the Secretary, and for the 
                        acquisition and installation of air 
                        traffic control, communications, and 
                        related equipment to be used in that 
                        tower;
                          (II) from amounts made available 
                        under sections 47114(c)(2) and 
                        47114(d)(3)(A) for reimbursement for 
                        the cost of construction or improvement 
                        of a nonapproach control tower, as 
                        defined by the Secretary, incurred 
                        after October 1, 1996, if the sponsor 
                        complied with the requirements of 
                        sections 47107(e), 47112(b), and 
                        47112(c) in constructing or improving 
                        that tower; and
                          (III) from amounts made available 
                        under sections 47114(c)(2) and 
                        47114(d)(3)(A) for reimbursement for 
                        the cost of acquiring and installing in 
                        that tower air traffic control, 
                        communications, and related equipment 
                        that was acquired or installed after 
                        October 1, 1996.
          (B) Eligibility.--An airport sponsor shall be 
        eligible for a grant under this paragraph only if--
                  (i)(I) the sponsor is a participant in the 
                Federal Aviation Administration contract tower 
                program established under subsection (a) and 
                continued under paragraph (1) or the pilot 
                program established under paragraph (3); or
                  (II) construction of a nonapproach control 
                tower would qualify the sponsor to be eligible 
                to participate in such program;
                  (ii) the sponsor certifies that it will pay 
                not less than 10 percent of the cost of the 
                activities for which the sponsor is receiving 
                assistance under this paragraph;
                  (iii) the Secretary affirmatively accepts the 
                proposed contract tower into a contract tower 
                program under this section and certifies that 
                the Secretary will seek future appropriations 
                to pay the Federal Aviation Administration's 
                cost of the contract to operate the tower to be 
                constructed under this paragraph;
                  (iv) the sponsor certifies that it will pay 
                its share of the cost of the contract to 
                operate the tower to be constructed under this 
                paragraph; and
                  (v) in the case of a tower to be constructed 
                under this paragraph from amounts made 
                available under section 47114(d)(2) or 
                47114(d)(3)(B), the Secretary certifies that--
                          (I) the Federal Aviation 
                        Administration has consulted the State 
                        within the borders of which the tower 
                        is to be constructed and the State 
                        supports the construction of the tower 
                        as part of its State airport capital 
                        plan; and
                          (II) the selection of the tower for 
                        funding is based on objective criteria.
          (C) Limitation on Federal share.--The Federal share 
        of the cost of construction of a nonapproach control 
        tower under this paragraph may not exceed [$1,500,000.] 
        $2,000,000.
  (c)  Safety Audits.--The Secretary shall establish uniform 
standards and requirements for safety assessments of air 
traffic control towers that receive funding under this section 
in accordance with the Administration's safety management 
system.

           *       *       *       *       *       *       *

Sec. 47128. State block grant program

  (a) General Requirements.--The Secretary of Transportation 
shall prescribe [regulations] guidance to carry out a State 
block grant program. The [regulations] guidance shall provide 
that the Secretary may designate not more than 9 qualified 
States for fiscal years 2000 and 2001 and 10 qualified States 
for each fiscal year thereafter to assume administrative 
responsibility for all airport grant amounts available under 
this subchapter, except for amounts designated for use at 
primary airports.
  (b) Applications and Selection.--A State wishing to 
participate in the program must submit an application to the 
Secretary. The Secretary shall select a State on the basis of 
its application only after--
          (1) deciding the State has an organization capable of 
        effectively administering a block grant made under this 
        section;
          (2) deciding the State uses a satisfactory airport 
        system planning process;
          (3) deciding the State uses a programming process 
        acceptable to the Secretary;
          (4) finding that the State has agreed to comply with 
        United States Government standard requirements for 
        administering the block [grant;] grant, including 
        Federal environmental requirements or an agreed upon 
        equivalent; and
          (5) finding that the State has agreed to provide the 
        Secretary with program information the Secretary 
        requires.
  (c) Project Analysis and Coordination Requirements.--Any 
Federal agency that must approve, license, or permit a proposed 
action by a participating State shall coordinate and consult 
with the State. The agency shall utilize the environmental 
analysis prepared by the State, provided it is adequate, or 
supplement that analysis as necessary to meet applicable 
Federal requirements.
  [(c)] (d) Safety and Security Needs and Needs of System.--
Before deciding whether a planning process is satisfactory or a 
programming process is acceptable under subsection (b)(2) or 
(b)(3) of this section, the Secretary shall ensure that the 
process provides for meeting critical safety and security needs 
and that the programming process ensures that the needs of the 
national airport system will be addressed in deciding which 
projects will receive money from the Government. In carrying 
out this subsection, the Secretary shall permit a State to use 
the priority system of the State if such system is not 
inconsistent with the national priority system.
  (e) Pilot Program.--The Secretary shall establish a pilot 
program for up to 3 States that do not participate in the 
program established under subsection (a) that is consistent 
with the program under subsection (a).

[Sec. 47129. Resolution of airport-air carrier disputes concerning 
                    airport fees]

Sec. 47129. Resolution of airport-air carrier and foreign 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] air carriers or foreign 
        air carriers [(as defined in section 40102 of this 
        title)] (as those terms are 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] air carrier or foreign 
                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] air 
        carrier or foreign 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 significant dispute exists or shall 
        assign the matter to an administrative law judge; and 
        thereafter the matter shall be handled in accordance 
        with part 302 of title 14, Code of Federal Regulations, 
        or as modified by the Secretary to ensure an orderly 
        disposition of the matter within the 120-day period and 
        any specifically applicable provisions of this section.
          (3) The administrative law judge shall issue a 
        recommended decision within 60 days after the complaint 
        is assigned 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 decision of the administrative law 
        judge shall be deemed to be the final order of the 
        Secretary.
          (5) Any party to the dispute may seek review of a 
        final order of the Secretary under this subsection in 
        the Circuit Court of Appeals for the District of 
        Columbia Circuit or the court of appeals in the circuit 
        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 and 
Foreign Air Carrier Access.--
          (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] air carrier or foreign air carrier to 
                the airport under protest.
                  (B) Referral or credit.--Any amounts paid 
                under this subsection by a complainant [air 
                carrier] air carrier or foreign air carrier to 
                the airport under protest shall be subject to 
                refund or credit to the [air carrier] air 
                carrier or foreign 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] air carrier or 
                foreign 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 and foreign air carrier 
        access.--Contingent upon an [air carrier's] air 
        carrier's or foreign 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] 
        air carrier or foreign air carrier currently providing 
        air service at the airport reasonable access to airport 
        facilities or service, or otherwise interfere with an 
        [air carrier's] air carrier's or foreign 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 carrier] air carrier or foreign 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] air carrier 
        or foreign 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.

           *       *       *       *       *       *       *

Sec. 47131. Annual report

  (a) General Rule.--Not later than [April 1] June 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]
          (1) a summary of airport development and planning 
        completed;
          (2) a summary of individual grants issued;
          (3) an accounting of discretionary and apportioned 
        funds allocated;
          (4) the allocation of appropriations; and
          (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 subsection (a)(5).

           *       *       *       *       *       *       *

Sec. 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.--
          (1) 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 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.
          (2) In the case of a privately owned airport, 
        subsection (a) shall not apply to the proceeds from the 
        sale of the airport to a public sponsor if--
                  (A) the sale is approved by the Secretary;
                  (B) funding is provided under this title for 
                the public sponsor's acquisition; and
                  (C) an amount equal to the remaining 
                unamortized portion of the original grant, 
                amortized over a 20-year period, is repaid to 
                the Secretary by the private owner for deposit 
                in the Trust Fund for airport acquisitions.
          (3) This subsection shall apply to grants issued on 
        or after October 1, 1996.
  (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.

           *       *       *       *       *       *       *

[Sec. 47137. Airport security program\1\
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    \1\ Repealed as of September 30, 2008.
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  [(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.]

           *       *       *       *       *       *       *

Sec. 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.
  (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 
47102(3)(L), 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,] or 47102(3)(L), 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).

           *       *       *       *       *       *       *

Sec. 47143. Environmental mitigation demonstration pilot program

  (a) In General.--The Secretary of Transportation shall carry 
out a pilot program involving not more than 6 projects at 
public-use airports under which the Secretary may make grants 
to sponsors of such airports from funds apportioned under 
paragraph 47117(e)(1)(A) for use at such airports for 
environmental mitigation demonstration projects that will 
measurably reduce or mitigate aviation impacts on noise, air 
quality or water quality in the vicinity of the airport. 
Notwithstanding any other provision of this subchapter, an 
environmental mitigation demonstration project approved under 
this section shall be treated as eligible for assistance under 
this subchapter.
  (b) Participation in Pilot Program.--A public-use airport 
shall be eligible for participation in the pilot.
  (c) Selection Criteria.--In selecting from among applicants 
for participation in the pilot program, the Secretary may give 
priority consideration to environmental mitigation 
demonstration projects that--
          (1) will achieve the greatest reductions in aircraft 
        noise, airport emissions, or airport water quality 
        impacts either on an absolute basis, or on a per-
        dollar-of-funds expended basis; and
          (2) will be implemented by an eligible consortium.
  (d) Federal Share.--Notwithstanding any other provision of 
this subchapter, the United States Government's share of the 
costs of a project carried out under this section shall be 50 
percent.
  (e) Maximum Amount.--Not more than $2,500,000 may be made 
available by the Secretary in grants under this section for any 
single project.
  (f) Identifying Best Practices.--The Administrator may 
develop and publish information identifying best practices for 
reducing or mitigating aviation impacts on noise, air quality, 
or water quality in the vicinity of airports, based on the 
projects carried out under the pilot program.
  (g) Definitions.--In this section:
          (1) Eligible consortium.--The term ``eligible 
        consortium'' means a consortium that comprises 2 or 
        more of the following entities:
                  (A) Businesses incorporated in the United 
                States.
                  (B) Public or private educational or research 
                organizations located in the United States.
                  (C) Entities of State or local governments in 
                the United States.
                  (D) Federal laboratories.
          (2) Environmental mitigation demonstration project.--
        The term ``environmental mitigation demonstration 
        project'' means a project that--
                  (A) introduces new conceptual environmental 
                mitigation techniques or technology with 
                associated benefits, which have already been 
                proven in laboratory demonstrations;
                  (B) proposes methods for efficient adaptation 
                or integration of new concepts to airport 
                operations; and
                  (C) will demonstrate whether new techniques 
                or technology for environmental mitigation 
                identified in research are--
                          (i) practical to implement at or near 
                        multiple public use airports; and
                          (ii) capable of reducing noise, 
                        airport emissions, or water quality 
                        impacts in measurably significant 
                        amounts.

          SUBCHAPTER II--SURPLUS PROPERTY FOR PUBLIC AIRPORTS

Sec. 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 nonaviation 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 industrial 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 
comply 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.
  (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.

           SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

Sec. 47173. Airport funding of FAA staff

  (a) Acceptance of Sponsor-Provided Funds.--Notwithstanding 
any other provision of law, the Administrator of the Federal 
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 
consultants in order to facilitate the timely processing, 
review, and completion of environmental activities associated 
with an airport development [project.] project, or to conduct 
special environmental studies related to a federally funded 
airport project or for special studies or reviews to support 
approved noise compatibility measures in a Part 150 program or 
environmental mitigation in a Federal Aviation Administration 
Record of Decision or Finding of No Significant Impact.
  (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 
Appropriations Act, 2002 (115 Stat. 862)) for the activities 
described in subsection (a).

           *       *       *       *       *       *       *

Sec. 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 Capacity 
        Benchmark Report 2001.] 2001 and 2004 Airport Capacity 
        Benchmark Reports or of the most recent Benchmark 
        report.
          (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 associated with the 
                runway or runway extension; and
                  (B) such other airport development projects 
                as the Secretary may designate as facilitating 
                a reduction in air traffic 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 injury to persons or damage to aircraft 
                and property, as determined 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.
          (7) Joint use airport.--The term ``joint use 
        airport'' means an airport owned by the United States 
        Department of Defense, at which both military and 
        civilian aircraft make shared use of the airfield.

                    SUBTITLE VII--AVIATION PROGRAMS

                 PART B--AIRPORT DEVELOPMENT AND NOISE

                           CHAPTER 475--NOISE

                     SUBCHAPTER I--NOISE ABATEMENT

Sec. 47504. Noise compatibility programs

  (a) Submissions.--(1) An airport operator that submitted a 
noise exposure map and related information under section 
47503(a) of this title may submit a noise compatibility program 
to the Secretary of Transportation after--
          (A) consulting with public agencies and planning 
        authorities in the area surrounding the airport, United 
        States Government officials having local responsibility 
        for the airport, and air carriers using the airport; 
        and
          (B) notice and an opportunity for a public hearing.
  (2) A program submitted under paragraph (1) of this 
subsection shall state the measures the operator has taken or 
proposes to take to reduce existing noncompatible uses and 
prevent introducing additional noncompatible uses in the area 
covered by the map. The measures may include--
          (A) establishing a preferential runway system;
          (B) restricting the use of the airport by a type or 
        class of aircraft because of the noise characteristics 
        of the aircraft;
          (C) constructing barriers and acoustical shielding 
        and soundproofing public buildings;
          (D) using flight procedures to control the operation 
        of aircraft to reduce exposure of individuals to noise 
        in the area surrounding the airport; [and]
          (E) acquiring land, air rights, easements, 
        development rights, and other interests to ensure that 
        the property will be used in ways compatible with 
        airport [operations.] operations;
          (F) joint comprehensive land use planning including 
        master plans, traffic studies, environmental evaluation 
        and economic and feasibility studies, with neighboring 
        local jurisdictions undertaking community redevelopment 
        in the area where the land or other property interests 
        acquired by the airport operator pursuant to this 
        subsection is located, to encourage and enhance 
        redevelopment opportunities that reflect zoning and 
        uses that will prevent the introduction of additional 
        incompatible uses and enhance redevelopment potential; 
        and
          (G) utility upgrades and other site preparation 
        efforts.
  (b) Approvals.--(1) The Secretary shall approve or disapprove 
a program submitted under subsection (a) of this section 
(except as the program is related to flight procedures referred 
to in subsection (a)(2)(D) of this section) not later than 180 
days after receiving it. The Secretary shall approve the 
program (except as the program is related to flight procedures 
referred to in subsection (a)(2)(D)) if the program--
          (A) does not place an unreasonable burden on 
        interstate or foreign commerce;
          (B) is reasonably consistent with achieving the goal 
        of reducing noncompatible uses and preventing the 
        introduction of additional noncompatible uses; and
          (C) provides for necessary revisions because of a 
        revised map submitted under section 47503(b) of this 
        title.
  (2) A program (except as the program is related to flight 
procedures referred to in subsection (a)(2)(D) of this section) 
is deemed to be approved if the Secretary does not act within 
the 180-day period.
  (3) The Secretary shall submit any part of a program related 
to flight procedures referred to in subsection (a)(2)(D) of 
this section to the Administrator of the Federal Aviation 
Administration. The Administrator shall approve or disapprove 
that part of the program.
  (4) The Secretary shall not approve in fiscal years 2004 
through 2007 a program submitted under subsection (a) if the 
program requires the expenditure of funds made available under 
section 48103 for mitigation of aircraft noise less than 65 
DNL.
  (c) Grants.--(1) The Secretary may incur obligations to make 
grants from amounts available under section 48103 of this title 
to carry out a project under a part of a noise compatibility 
program approved under subsection (b) of this section. A grant 
may be made to--
          (A) an airport operator submitting the program; and
          (B) a unit of local government in the area 
        surrounding the airport, if the Secretary decides the 
        unit is able to carry out the project.
  (2) Soundproofing and acquisition of certain residential 
buildings and properties.--The Secretary may incur obligations 
to make grants from amounts made available under section 48103 
of this title--
          (A) for projects to soundproof residential 
        buildings--
                  (i) if the airport operator received approval 
                for a grant for a project to soundproof 
                residential buildings pursuant to section 
                301(d)(4)(B) of the Airport and Airway Safety 
                and Capacity Expansion Act of 1987;
                  (ii) if the airport operator submits updated 
                noise exposure contours, as required by the 
                Secretary; and
                  (iii) if the Secretary determines that the 
                proposed projects are compatible with the 
                purposes of this chapter;
          (B) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to soundproof residential buildings 
        located on residential properties, and to acquire 
        residential properties, at which noise levels are not 
        compatible with normal operations of an airport--
                  (i) if the airport operator amended an 
                existing local aircraft noise regulation during 
                calendar year 1993 to increase the maximum 
                permitted noise levels for scheduled air 
                carrier aircraft as a direct result of 
                implementation of revised aircraft noise 
                departure procedures mandated for aircraft 
                safety purposes by the Administrator of the 
                Federal Aviation Administration for 
                standardized application at airports served by 
                scheduled air carriers;
                  (ii) if the airport operator submits updated 
                noise exposure contours, as required by the 
                Secretary; and
                  (iii) if the Secretary determines that the 
                proposed projects are compatible with the 
                purposes of this chapter;
          (C) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to carry out any part of a program 
        developed before February 18, 1980, or before 
        implementing regulations were prescribed, if the 
        Secretary decides the program is substantially 
        consistent with reducing existing noncompatible uses 
        and preventing the introduction of additional 
        noncompatible uses and the purposes of this chapter 
        will be furthered by promptly carrying out the program;
          (D) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to soundproof a building in the noise 
        impact area surrounding the airport that is used 
        primarily for educational or medical purposes and that 
        the Secretary decides is adversely affected by airport 
        noise; and
          (E) to an airport operator of a congested airport (as 
        defined in section 47175) and a unit of local 
        government referred to in paragraph (1)(B) of this 
        subsection to carry out a project to mitigate noise in 
        the area surrounding the airport if the project is 
        included as a commitment in a record of decision of the 
        Federal Aviation Administration for an airport capacity 
        enhancement project (as defined in section 47175) even 
        if that airport has not met the requirements of part 
        150 of title 14, Code of Federal Regulations.
  (3) An airport operator may agree to make a grant made under 
paragraph (1)(A) of this subsection available to a public 
agency in the area surrounding the airport if the Secretary 
decides the agency is able to carry out the project.
  (4) The Government's share of a project for which a grant is 
made under this subsection is the greater of--
          (A) 80 percent of the cost of the project; or
          (B) the Government's share that would apply if the 
        amounts available for the project were made available 
        under subchapter I of chapter 471 of this title for a 
        project at the airport.
  (5) The provisions of subchapter I of chapter 471 of this 
title related to grants apply to a grant made under this 
chapter, except--
          (A) section 47109(a) and (b) of this title; and
          (B) any provision that the Secretary decides is 
        inconsistent with, or unnecessary to carry out, this 
        chapter.
  (6) Aircraft noise primarily caused by military aircraft.--
The Secretary may make a grant under this subsection for a 
project even if the purpose of the project is to mitigate the 
effect of noise primarily caused by military aircraft at an 
airport.
  (d) Government Relief From Liability.--The Government is not 
liable for damages from aviation noise because of action taken 
under this section.
  (e) Grants for Assessment of Flight Procedures.--
          (1) The Secretary is authorized in accordance with 
        subsection (c)(1) to make a grant to an airport 
        operator to assist in completing environmental review 
        and assessment activities for proposals to implement 
        flight procedures that have been approved for airport 
        noise compatibility planning purposes under subsection 
        (b).
          (2) The Administrator of the Federal Aviation 
        Administration may accept funds from an airport 
        sponsor, including funds provided to the sponsor under 
        paragraph (1), to hire additional staff or obtain the 
        services of consultants in order to facilitate the 
        timely processing, review and completion of 
        environmental activities associated with proposals to 
        implement flight procedures submitted and approved for 
        airport noise compatibility planning purposes in 
        accordance with this section. Funds received under this 
        authority shall not be subject to the procedures 
        applicable to the receipt of gifts by the 
        Administrator.

             SUBCHAPTER II--NATIONAL AVIATION NOISE POLICY

Sec. 47531. Penalties for violating sections 47528-47530

  A person violating section 47528, [47529, or 47530] 47529, 
47530, or 47534 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.

Sec. 47532. Judicial review

  An action taken by the Secretary of Transportation under any 
of sections [47528-47531] 47528 through 47531 or 47534 of this 
title is subject to judicial review as provided under section 
46110 of this title.

           *       *       *       *       *       *       *

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

  (a) Prohibition.--Except as provided in subsection (b), (c), 
or (d), a person may not operate a civil subsonic turbojet with 
a maximum weight of 75,000 pounds or less to or from an airport 
in the United States unless the Secretary of Transportation 
finds that the aircraft complies with stage 3 noise levels.
  (b) Exception.--Subsection (a) shall not apply to aircraft 
operated only outside the 48 contiguous States.
  (c) Opt-Out.--Subsection (a) shall not apply at an airport 
where the airport operator has notified the Secretary that it 
wants to continue to permit the operation of civil subsonic 
turbojets with a maximum weight of 75,000 pounds or less that 
do not comply with stage 3 noise levels. The Secretary shall 
post the notices received under this subsection on its website 
or in another place easily accessible to the public.
  (d) Limitation.--The Secretary shall permit a person to 
operate Stage 1 and Stage 2 aircraft with a maximum weight of 
75,000 pounds or less to or from an airport in the contiguous 
48 States in order--
          (1) to sell, lease, or use the aircraft outside the 
        48 contiguous States;
          (2) to scrap the aircraft;
          (3) to obtain modifications to the aircraft to meet 
        stage 3 noise levels;
          (4) to perform scheduled heavy maintenance or 
        significant modifications on the aircraft at a 
        maintenance facility located in the contiguous 48 
        states;
          (5) to deliver the aircraft to an operator leasing 
        the aircraft from the owner or return the aircraft to 
        the lessor;
          (6) to prepare or park or store the aircraft in 
        anticipation of any of the activities described in 
        paragraphs (1) through (5); or
          (7) to divert the aircraft to an alternative airport 
        in the 48 contiguous States on account of weather, 
        mechanical, fuel air traffic control or other safety 
        reasons while conducting a flight in order to perform 
        any of the activities described in paragraphs (1) 
        through (6).
  (e) Statutory Construction.--Nothing in the section may be 
construed as interfering with, nullifying, or otherwise 
affecting determinations made by the Federal Aviation 
Administration, or to be made by the Administration, with 
respect to applications under part 161 of title 14, Code of 
Federal Regulations, that were pending on the date of enactment 
of the Aircraft Noise Reduction Act of 2006.

                    SUBTITLE VII--AVIATION PROGRAMS

                           PART C--FINANCING

       CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec. 48101. Air navigation facilities and equipment

  (a) General Authorization of Appropriations.--Not more than a 
total of the following amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
          [(1) $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.]
          (1) $2,572,000,000 for fiscal year 2008;
          (2) $2,923,000,000 for fiscal year 2009, of which 
        $412,000,000 is derived from the surcharge imposed 
        under section 48115;
          (3) $3,079,000,000 for fiscal year 2010, of which 
        $423,000,000 is derived from the surcharge imposed 
        under section 48115; and
          (4) $3,317,000,000 for fiscal year 2011, of which 
        $436,000,000 is derived from the surcharge imposed 
        under section 48115.
  (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, 
efficiency, 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 
estimates 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.

Sec. 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 
                management 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 activities;
                  [(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 activities;
                  [(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 medicine 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 carrying 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 
                infrastructure projects and activities;
                  [(B) $33,042,500 for capacity and air traffic 
                management 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);
          [(7) for fiscal year 2001, $237,000,000;
          [(8) for fiscal year 2002, $249,000,000; and
          [(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 activities 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 Development, 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.]
  (a) In General.--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 through 44513 of 
this title:
          (1) $140,000,000 for fiscal year 2008.
          (2) $191,000,000 for fiscal year 2009.
          (3) $191,000,000 for fiscal year 2010.
          (4) $194,000,000 for fiscal year 2011.
  (b) Research Priorities.--(1) The Administrator shall 
consider 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 activities 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 
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 
authorized 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 Institutions, in research on subjects 
        of relevance to the Federal Aviation Administration. 
        Grants may be awarded under this subsection for--
                  [(A) research projects to be carried out at 
                primarily undergraduate 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.]
  (c) Research Grants Program Involving Undergraduate 
Students.--The Administrator of the Federal Aviation 
Administration shall establish a program to utilize 
undergraduate and technical colleges, including Historically 
Black Colleges and Universities, Hispanic Serving Institutions, 
tribally controlled colleges and universities, and Alaska 
Native and Native Hawaiian serving institutions in research on 
subjects of relevance to the Federal Aviation Administration. 
Grants may be awarded under this subsection for--
          (1) research projects to be carried out at primarily 
        undergraduate institutions and technical colleges;
          (2) research projects that combine research at 
        primarily undergraduate institutions and technical 
        colleges with other research supported by the Federal 
        Aviation Administration;
          (3) research on future training requirements on 
        projected changes in regulatory requirements for 
        aircraft maintenance and power plant licensees; or
          (4) research on the impact of new technologies and 
        procedures, particularly those related to aircraft 
        flight deck and air traffic management functions, and 
        on training requirements for pilots and air traffic 
        controllers.

Sec. 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.]
          (1) $3,800,000,000 for fiscal year 2008;
          (2) $3,900,000,000 for fiscal year 2009;
          (3) $4,000,000,000 for fiscal year 2010; and
          (4) $4,100,000,000 for fiscal year 2011.
Such sums shall remain available until expended.

           *       *       *       *       *       *       *

[Sec. 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.]

``Sec. 48105. Airport programs administrative expenses

  Of the amount made available under section 48103 of this 
title, the following may be available for administrative 
expenses relating to the Airport Improvement Program, passenger 
facility charge approval and oversight, national airport system 
planning, airport standards development and enforcement, 
airport certification, airport-related environmental activities 
(including legal services), and other airport-related 
activities (including airport technology research), to remain 
available until expended--
          (1) for fiscal year 2008, $80,676,000;
          (2) for fiscal year 2009, $85,000,000;
          (3) for fiscal year 2010, $89,000,000; and
          (4) for fiscal year 2011, $93,000,000.

           *       *       *       *       *       *       *

Sec. 48114. Funding for aviation programs

  (a) Authorization of Appropriations.--
          (1) Airport and airway trust fund guarantee.--
                  (A) In general.--The total budget resources 
                made available from the Airport and Airway 
                Trust Fund each fiscal year through fiscal year 
                [2007] 2011 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 fiscal year. Such 
                amounts may be used only for aviation 
                investment programs listed in subsection (b).
                  (B) Guarantee.--No funds may be appropriated 
                or limited for aviation investment programs 
                listed in subsection (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,] 2011, 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] 2011 for Research and Development or 
        Operations if the sum of the obligation limitation for 
        Grants-in-Aid for Airports and the appropriation for 
        Facilities and Equipment for such fiscal year is below 
        the sum of the authorized levels for Grants-in-Aid for 
        Airports and for Facilities and Equipment for such 
        fiscal year.

Sec. 48115. Modernization surcharge

  (a) In General.--
          (1) Not later than October 1, 2008, the Administrator 
        of the Federal Aviation Administration shall impose a 
        surcharge of $25 per flight for air traffic control 
        costs. Except as provided in subsection (b), owners or 
        operators of aircraft in the national airspace system 
        shall pay the surcharges assessed under this section.
          (2) Surcharge credited as offsetting collections.--
        Any surcharge collected under this section shall, 
        subject to appropriation made in advance--
                  (A) be deposited in an Air Traffic 
                Modernization Fund which shall be established 
                in the Treasury;
                  (B) be credited as offsetting collections to 
                the account established under section 48101 of 
                this title; and
                  (C) be available to the Administrator for 
                expenditure only to pay the costs of Next 
                Generation Air Transportation System projects 
                listed in the Capital Investment Plan required 
                by section 44501 and approved by the Air 
                Traffic Control Modernization Oversight Board.
          (3) Effect of law on surcharge collection.--The 
        Administrator may continue to assess and collect and 
        spend surcharges established under this section during 
        any period in which the agency's funding is provided 
        under an Act providing continuing appropriations in 
        lieu of the agency's regular appropriations. The 
        Administrator may not assess or collect a surcharge 
        established under this section for any fiscal year for 
        which no annual appropriations Act is enacted that 
        appropriates at least the amount authorized by section 
        48101 for that fiscal year less the amount required by 
        section 48116(c).
  (b) Exceptions.--
          (1) Military and certain other aircraft.--A surcharge 
        may not be assessed under this section for military 
        aircraft, public aircraft (as defined in section 40102 
        of this subtitle), air ambulance aircraft, agricultural 
        aircraft, or for military or non-commercial civil 
        aircraft of a foreign government.
          (2) Exemption applicability.--A surcharge may not be 
        assessed under this section for--
                  (A) piston engined aircraft; or
                  (B) turboprop or turboshaft aircraft 
                operating outside of controlled airspace.
          (3) Flight plan information.--Any person required to 
        file a flight plan with the Administration, including 
        operators of flights described in paragraphs (1) and 
        (2), shall specify in the plan whether the person is 
        engaged in an operation for compensation or hire, a 
        general aviation operation, or a military or public 
        aircraft for operation for purposes of this section.
          (4) Canada to canada flights.--The Administrator may 
        waive a surcharge that would otherwise be assessed 
        under this chapter for flights that operate in United 
        States-controlled airspace but takeoff and land at an 
        airport in Canada without an intermediate stop outside 
        Canada, if the Administrator determines that not 
        assessing and collecting the surcharge for such flights 
        would be in the public interest.
          (5) Intrastate flights.--For the purpose of applying 
        this section to intrastate flights in a State that is 
        not contiguous with another State, a surcharge may not 
        be applied to any flight that originates or terminates 
        at an airport, or in airspace, that is not controlled 
        by a terminal radar approach control facility or a 
        Combined Center/Radar Approach Control facility or to 
        any flight that originates and terminates at an 
        airport, or in airspace, that is not controlled by a 
        terminal radar approach control facility or a Combined 
        Center/Radar Approach Control facility.
          (6) Training flights.--The Administrator may grant an 
        exemption from a surcharge imposed under this 
        subsection to an individual intending to conduct 
        training flights. An individual seeking such an 
        exemption shall submit a request to the Administrator 
        in such form and manner as the Administrator may 
        require.
  (c) Administrative Provisions.--
          (1) Surcharges payable to the administrator.--
        Surcharges assessed and amounts collected under this 
        section are payable to the Administrator. The 
        Administrator may refund any surcharge, or portion 
        thereof, paid by mistake in excess of the amount 
        required. The Administrator may enter into agreements 
        with other Federal agencies to collect surcharges 
        assessed under this section on behalf of the 
        Administration.
          (2) Collection procedures.--The Administrator shall 
        establish procedures for the collection of surcharges. 
        These procedures shall establish the frequency of 
        payment, deadlines for payment, a maximum amount of 
        surcharges that may be outstanding on the account of 
        any person, and such other limitations and conditions 
        as the Administrator determines are necessary to obtain 
        prompt payment of surcharges.
          (3) Failure to pay required surcharges.--If the 
        Administrator determines that any person has failed to 
        pay surcharges when due under this section, or to 
        comply with any limitation or condition on payment 
        under this section, or has failed to provide the 
        Administration with the correct information in the 
        person's flight plan or by other means regarding the 
        nature of the flight, including whether the person 
        engaged in an operation for compensation or hire or 
        general aviation operation, the Administrator may--
                  (A) assess interest charges, using a rate 
                equal to 150 percent of a rate determined by 
                the Secretary based on the average of bond 
                equivalent yields on 13-week Treasury bills 
                auctioned during the previous calendar quarter, 
                to be predetermined quarterly, on amounts that 
                have not been paid by the deadline;
                  (B) change the required payment schedule for 
                such person;
                  (C) offset any amount of surcharges owed by 
                withholding any payment otherwise owed or due 
                to the person by the Secretary or the 
                Administrator; or
                  (D) impose a civil penalty for each day 
                amounts remain unpaid, or take other 
                appropriate enforcement action under this 
                subtitle.
          (4) Action when future payment in jeopardy.--If the 
        Administrator reasonably determines that an aircraft 
        owner or operator will not pay its required surcharges 
        when due, the Administrator may change the required 
        payment schedule for such person.
  (d) Effect on Previous Provisions.--Unless otherwise 
specified, nothing in this section shall be construed as 
affecting fees previously authorized and established under 
chapter 453.
  (e) Administration of Surcharge.--The requirements applicable 
to developing and issuing rules under subchapter II of chapter 
5 of title 5 shall not apply to the actions of the Secretary or 
the Administrator under this section.
  (f) Definitions.--In this section:
          (1) Agricultural aircraft.--The term ``agricultural 
        aircraft'' means an aircraft used to make aerial 
        applications for agricultural, forestry, or public 
        health purposes.
          (2) Air ambulance aircraft.--The term ``air ambulance 
        aircraft'' means--
                  (A) rotorcraft which are engaged in an 
                operation to provide emergency medical 
                services; or
                  (B) fixed-wing aircraft which are equipped 
                for and exclusively dedicated to providing 
                acute care medical services.
          (3) Flight.--The term ``flight'' means a takeoff and 
        landing by an aircraft.

Sec. 48116. Leveraged financing for next generation air traffic control 
                    system

  (a) In General.--
          (1) In order to support the transition to the Next 
        Generation Air Transportation System, in fiscal years 
        2009 through 2025 the Secretary of Transportation is 
        authorized to issue obligations to finance capital 
        investments in the facilities and equipment account of 
        the air traffic control system to be owned and operated 
        by the Federal Aviation Administration.
          (2) The Secretary shall not issue any obligations 
        under paragraph (1) without first obtaining approval by 
        the Director of the Office of Management and Budget of 
        the issuance of such obligations and proposed 
        investments to be financed.
  (b) Conditions and Limit on Indebtedness.--Obligations issued 
under this section shall be in such forms and denominations, 
bear such maturities, and shall be subject to such terms and 
conditions as may be prescribed by the Secretary. The aggregate 
amount of all such obligations shall not exceed $5,000,000,000.
  (c) Repayment.--The Secretary of Transportation shall use 
revenues derived from the surcharges authorized by section 
48115 in the amounts required to repay such obligations with 
interest, and such payments shall have first priority in the 
use of surcharges collected during this period. Beginning in 
2009, any surcharges required to repay obligations shall be 
collected notwithstanding section 48115(a)(3). These amounts 
shall not be treated as discretionary offsetting collections, 
but shall be treated as offsetting receipts and shall only be 
used to repay the obligations incurred under paragraph (1).
  (d) Interest Rate.--The interest rate on obligations issued 
under this section shall be a rate determined by the Secretary, 
taking into consideration the current market yields on 
outstanding marketable obligations of the United States of 
comparable maturity, plus a surcharge, determined by the 
Secretary, to be sufficient to cover any potential losses and 
the administrative costs associated with the obligations. Any 
surcharges for administrative costs collected by the Secretary 
shall be credited to the appropriation account which incurred 
the cost.
  (e) Purchase of Obligations.--For the purposes of purchasing 
obligations under subsection (a), the Secretary may use as a 
public debt transaction the proceeds from the sale of any 
securities issued under chapter 31 of title 31, United States 
Code, and the purposes for which securities may be issued under 
such chapter are extended to include any purchase of such 
obligations under this subsection.

                    SUBTITLE VII--AVIATION PROGRAMS

                        PART D--PUBLIC AIRPORTS

             CHAPTER 491--METROPOLITAN WASHINGTON AIRPORTS

Sec. 49108. Limitations

  After October 1, [2008,] 2011, 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.

           *       *       *       *       *       *       *

          VISION 100--CENTURY OF AVIATION REAUTHORIZATION ACT

SEC. 186. MIDWAY ISLAND AIRPORT.

  (a) Findings.--Congress finds that the continued operation of 
the Midway Island Airport in accordance with the standards of 
the Federal Aviation Administration applicable to commercial 
airports is critical to the safety of commercial, military, and 
general aviation in the mid- Pacific Ocean region.
  (b) Memorandum of Understanding on Sale of Aircraft Fuel.--
The Secretaries of Transportation, Defense, Interior, and 
Homeland Security shall enter into a memorandum of 
understanding to facilitate the sale of aircraft fuel on Midway 
Island at a price that will generate sufficient revenue to 
improve the ability of the airport to operate on a self-
sustaining basis in accordance with the standards of the 
Federal Aviation Administration applicable to commercial 
airports. The memorandum shall also address the long-range 
potential of promoting tourism as a means to generate revenue 
to operate the airport.
  (c) Transfer of Navigation Aids at Midway Island Airport.--
The Midway Island Airport may transfer, without consideration, 
to the Administrator the navigation aids at the airport. The 
Administrator shall accept the navigation aids and operate and 
maintain the navigation aids under criteria of the 
Administrator.
  (d) Funding to Secretary of the Interior for Midway Island 
Airport.--The Secretary of Transportation may enter into a 
reimbursable agreement with the Secretary of the Interior for 
the purpose of funding airport development, as defined in 
section 47102(3) of title 49, United States Code, at Midway 
Island Airport for fiscal years ending before [October 1, 
2007,] October 1, 2011, from amounts available in the 
discretionary fund established by section 47115 of such title. 
The maximum obligation under the agreement for any such fiscal 
year shall be $2,500,000.

SEC. 406. CODE-SHARING PILOT PROGRAM.

                         [49 U.S.C. 41731 note]

  (a) In General.--The Secretary of Transportation [shall] may 
establish a pilot program under which the Secretary may require 
air carriers providing service with compensation under 
subchapter II of chapter 417 of title 49, United States Code, 
and major air carriers (as defined in section 41716(a)(2) of 
such title) serving large hub airports (as defined in section 
40102 of such title) to participate in multiple code- share 
arrangements consistent with normal industry practice whenever 
and wherever the Secretary determines that such multiple code-
sharing arrangements would improve air transportation services.
  (b) Limitation.--The Secretary may not require air carriers 
to participate in the pilot program under this section for more 
than 10 communities receiving service under subchapter II of 
chapter 417 of title 49, United States Code.

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

                         [49 U.S.C. 41731 note]

  (a) Request for Secretarial Review.--An eligible place (as 
defined in section 41731 of title 49, United States Code) with 
respect to which the Secretary has, in the 2-year period ending 
on the date of enactment of this Act, eliminated (or 
tentatively eliminated) compensation for essential air service 
to such place, or terminated (or tentatively terminated) the 
compensation eligibility of such place for essential air 
service, under section 332 of the Department of Transportation 
and Related Agencies Appropriations Act, 2000 (49 U.S.C. 41731 
note), section 205 of the Wendell H. Ford Aviation Investment 
and Reform Act for the 21st Century (49 U.S.C. 41731 note), or 
any prior law of similar effect based on the highway mileage of 
such place from the nearest hub airport (as defined in section 
40102 of such title), may request the Secretary to review such 
action.
  (b) Determination of Mileage.--In reviewing an action under 
subsection (a), the highway mileage between an eligible place 
and the nearest medium hub airport or large hub airport is the 
highway mileage of the most commonly used route between the 
place and the medium hub airport or large hub airport. In 
identifying such route, the Secretary shall identify the most 
commonly used route for a community by--
          (1) consulting with the Governor of a State or the 
        Governor's designee; and
          (2) considering the certification of the Governor of 
        a State or the Governor's designee as to the most 
        commonly used route.
  (c) Eligibility Determination.--Not later than 60 days after 
receiving a request under subsection (a), the Secretary shall--
          (1) determine whether the eligible place would have 
        been subject to an elimination of compensation 
        eligibility for essential air service, or termination 
        of the eligibility of such place for essential air 
        service, under the provisions of law referred to in 
        subsection (a) based on the determination of the 
        highway mileage of such place from the nearest medium 
        hub airport or large hub airport under subsection (b); 
        and
          (2) issue a final order with respect to the 
        eligibility of such place for essential air service 
        compensation under subchapter II of chapter 417 of 
        title 49, United States Code.
  (d) Limitation on Period of Final Order.--A final order 
issued under subsection (c) shall terminate on [September 30, 
2007.] September 30, 2011.

           *       *       *       *       *       *       *

SEC. 708. FAA CENTER FOR EXCELLENCE FOR APPLIED RESEARCH AND TRAINING 
                    IN THE USE OF ADVANCED MATERIALS IN TRANSPORT 
                    AIRCRAFT.

                         [49 U.S.C. 44504 note]

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall develop a Center for Excellence focused on 
applied research and training on the durability and 
maintainability of advanced materials in transport airframe 
structures. The Center shall--
          (1) promote and facilitate collaboration among 
        academia, the Federal Aviation Administration's 
        Transportation Division, and the commercial aircraft 
        industry, including manufacturers, commercial air 
        carriers, and suppliers; and
          (2) establish goals set to advance technology, 
        improve engineering practices, and facilitate 
        continuing education in relevant areas of study.
  (b) Authorization of Appropriations.--There is authorized to 
be appropriated to the Administrator [$500,000 for fiscal year 
2004] $1,000,000 for each of fiscal years 2008 through 2012 to 
carry out this section.

SEC. 709. AIR TRANSPORTATION SYSTEM JOINT PLANNING AND DEVELOPMENT 
                    OFFICE.

                         [49 U.S.C. 40101 note]

  (a) Establishment.--(1) The Secretary of Transportation shall 
establish in the Federal Aviation Administration a joint 
planning and development office to manage work related to the 
Next Generation Air Transportation System. The office shall be 
known as the Next Generation Air Transportation System Joint 
Planning and Development Office (in this section referred to as 
the ``Office'').
 (2) The responsibilities of the Office shall include--
         (A) creating and carrying out an integrated plan for a 
        Next Generation Air Transportation System pursuant to 
        subsection (b);
         (B) overseeing research and development on that 
        system;
         (C) creating a transition plan for the implementation 
        of that system;
         (D) coordinating aviation and aeronautics research 
        programs to achieve the goal of more effective and 
        directed programs that will result in applicable 
        research;
         (E) coordinating goals and priorities and coordinating 
        research activities within the Federal Government with 
        United States aviation and aeronautical firms;
         (F) coordinating the development and utilization of 
        new technologies to ensure that when available, they 
        may be used to their fullest potential in aircraft and 
        in the air traffic control system;
         (G) facilitating the transfer of technology from 
        research programs such as the National Aeronautics and 
        Space Administration program and the Department of 
        Defense Advanced Research Projects Agency program to 
        Federal agencies with operational responsibilities and 
        to the private sector; and
         (H) reviewing activities relating to noise, emissions, 
        fuel consumption, and safety conducted by Federal 
        agencies, including the Federal Aviation 
        Administration, the National Aeronautics and Space 
        Administration, the Department of Commerce, and the 
        Department of Defense.
 (3)(A) The Office shall operate in conjunction with relevant 
programs in the Department of Defense, the National Aeronautics 
and Space Administration, the Department of Commerce and the 
Department of Homeland Security. The Secretary of 
Transportation may request assistance from staff from those 
Departments and other Federal agencies.
  (B) The Administrator of the Federal Aviation Administration, 
the Secretary of Defense, the Administrator of the National 
Aeronautics and Space Administration, the Secretary of 
Commerce, the Secretary of Homeland Security, and the head of 
any other Department or Federal agency from which the Secretary 
of Transportation requests assistance under subparagraph (A) 
shall designate an implementation office to be responsible 
for--
          (i) carrying out the Department or agency's Next 
        Generation Air Transportation System implementation 
        activities with the Office; and
          (ii) liaison and coordination with other Departments 
        and agencies involved in Next Generation Air 
        Transportation System activities; and
          (iii) managing all Next Generation Air Transportation 
        System programs for the Department or agency, including 
        necessary budgetary and staff resources, including, for 
        the Federal Aviation Administration, those projects 
        described in section 44501(b)(5) of title 49, United 
        States Code).
  (C) The head of any such Department or agency shall ensure 
that--
          (i) the Department's or agency's Next Generation Air 
        Transportation System responsibilities are clearly 
        communicated to the designated office; and
          (ii) the performance of supervisory personnel in that 
        office in carrying out the Department's or agency's 
        Next Generation Air Transportation System 
        responsibilities is reflected in their annual 
        performance evaluations and compensation decisions.
  (D)(i) Within 6 months after the date of enactment of the 
Aviation Investment and Modernization Act of 2007, the head of 
each such Department or agency shall execute a memorandum of 
understanding with the Office and with the other Departments 
and agencies participating in the Next Generation Air 
Transportation System project that--
          (I) describes the respective responsibilities of each 
        such Department and agency, including budgetary 
        commitments; and
          (II) the budgetary and staff resources committed to 
        the project.
  (ii) The memorandum shall be revised as necessary to reflect 
any changes in such responsibilities or commitments and be 
reflected in each Department or agency's budget request.
 (4) In developing and carrying out its plans, the Office shall 
consult with the public and ensure the participation of experts 
from the private sector including representatives of commercial 
aviation, general aviation, aviation labor groups, aviation 
research and development entities, aircraft and air traffic 
control suppliers, and the space industry.
  (5) The Director of the Office shall be a voting member of 
the Federal Aviation Administration's Joint Resources Council 
and the Air Traffic Organization's Executive Council.
 (b) Integrated Plan.--The integrated plan shall be designed to 
ensure that the Next Generation Air Transportation System meets 
air transportation safety, security, mobility, efficiency, and 
capacity needs [beyond those currently included in the Federal 
Aviation Administration's operational evolution plan] and 
accomplishes the goals under subsection (c). The integrated 
plan shall include--
         (1) a national vision statement for an air 
        transportation system capable of meeting potential air 
        traffic demand by 2025;
         (2) a description of the demand and the performance 
        characteristics that will be required of the Nation's 
        future air transportation system, and an explanation of 
        how those characteristics were derived, including the 
        national goals, objectives, and policies the system is 
        designed to further, and the underlying socioeconomic 
        determinants, and associated models and analyses;
         (3) a multiagency [research and development roadmap] 
        implementation plan for creating the Next Generation 
        Air Transportation System with the characteristics 
        outlined under clause (ii), including--
                 (A) the most significant technical obstacles 
                and the research and development activities 
                necessary to overcome them, including for each 
                project, the role of each Federal agency, 
                corporations, and universities;
                 (B) the annual anticipated cost of carrying 
                out the research and development activities; 
                [and]
                 (C) the technical milestones that will be used 
                to evaluate the activities; and
                  (D) a schedule of rulemakings required to 
                issue regulations and guidelines for 
                implementation of the Next Generation Air 
                Transportation System within a timeframe 
                consistent with the integrated plan; and
         (4) a description of the operational concepts and key 
        technologies to meet the system performance 
        requirements for all system [users] users, an 
        implementation plan, and a timeline and anticipated 
        expenditures needed to develop and deploy the system to 
        meet the vision for 2025.
  Within 6 months after the date of enactment of the Aviation 
Investment and Modernization Act of 2007, the Administrator 
shall develop the implementation plan described in paragraph 
(3) of this subsection and shall update it annually thereafter.
 (c) Goals.--The Next Generation Air Transportation System 
shall--
         (1) improve the level of safety, security, efficiency, 
        quality, and affordability of the National Airspace 
        System and aviation services;
         (2) take advantage of data from emerging ground-based 
        and space-based communications, navigation, and 
        surveillance technologies;
         (3) integrate data streams from multiple agencies and 
        sources to enable situational awareness and seamless 
        global operations for all appropriate users of the 
        system, including users responsible for civil aviation, 
        homeland security, and national security;
         (4) leverage investments in civil aviation, homeland 
        security, and national security and build upon current 
        air traffic management and infrastructure initiatives 
        to meet system performance requirements for all system 
        users;
         (5) be scalable to accommodate and encourage 
        substantial growth in domestic and international 
        transportation and anticipate and accommodate 
        continuing technology upgrades and advances;
         (6) accommodate a wide range of aircraft operations, 
        including airlines, air taxis, helicopters, general 
        aviation, and unmanned aerial vehicles; and
         (7) take into consideration, to the greatest extent 
        practicable, design of airport approach and departure 
        flight paths to reduce exposure of noise and emissions 
        pollution on affected residents.
 (d) Reports.--The Administrator of the Federal Aviation 
Administration shall transmit to the Committee on Commerce, 
Science, and Transportation in the Senate and the Committee on 
Transportation and Infrastructure and the Committee on Science 
in the House of Representatives--
         (1) not later than 1 year after the date of enactment 
        of this Act, the integrated plan required in subsection 
        (b); and
         (2) annually at the time of the President's budget 
        request, a report describing the progress in carrying 
        out the plan required under subsection (b) and any 
        changes to that plan.
 (e) Authorization of Appropriations.--There are authorized to 
be appropriated to the Office $50,000,000 for each of the 
fiscal years 2004 through [2010.] 2011.

SEC. 710. NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY COUNCIL.

                         [49 U.S.C. 40101 note]

  (a) In General.--The Secretary of Transportation shall 
establish a senior policy committee to work with the Next 
Generation Air Transportation System Joint Planning and 
Development Office. The senior policy committee shall be 
chaired by the [Secretary.] Secretary and shall meet at least 
once each quarter.
  (b) Membership.--In addition to the Secretary, the senior 
policy committee shall be composed of--
          (1) the Administrator of the Federal Aviation 
        Administration (or the Administrator's designee);
          (2) the Administrator of the National Aeronautics and 
        Space Administration (or the Administrator's designee);
          (3) the Secretary of Defense (or the Secretary's 
        designee);
          (4) the Secretary of Homeland Security (or the 
        Secretary's designee);
          (5) the Secretary of Commerce (or the Secretary's 
        designee);
          (6) the Director of the Office of Science and 
        Technology Policy (or the Director's designee); and
          (7) designees from other Federal agencies determined 
        by the Secretary of Transportation to have an important 
        interest in, or responsibility for, other aspects of 
        the system.
  (c) Function.--The senior policy committee shall--
          (1) advise the Secretary of Transportation regarding 
        the national goals and strategic objectives for the 
        transformation of the Nation's air transportation 
        system to meet its future needs;
          (2) provide policy guidance for the integrated plan 
        for the air transportation system to be developed by 
        the Next Generation Air Transportation System Joint 
        Planning and Development Office;
          (3) provide ongoing policy review for the 
        transformation of the air transportation system;
          (4) identify resource needs and make recommendations 
        to their respective agencies for necessary funding for 
        planning, research, and development activities; and
          (5) make legislative recommendations, as appropriate, 
        for the future air transportation system.
  (d) Consultation.--In carrying out its functions under this 
section, the senior policy committee shall consult with, and 
ensure participation by, the private sector (including 
representatives of general aviation, commercial aviation, 
aviation labor, and the space industry), members of the public, 
and other interested parties and may do so through a special 
advisory committee composed of such representatives.

           *       *       *       *       *       *       *

        NATIONAL PARKS AIR TRANSPORTATION MANAGEMENT ACT OF 2000

                         [49 U.S.C. 40128 note]

SEC. 804. QUIET AIRCRAFT TECHNOLOGY FOR GRAND CANYON.

  (a) Quiet Technology Requirements.--Within 12 months after 
the date of the enactment of this Act, the Administrator shall 
designate reasonably achievable requirements for fixed-wing and 
helicopter aircraft necessary for such aircraft to be 
considered as employing quiet aircraft technology for purposes 
of this section. If the Administrator determines that the 
Administrator will not be able to make such designation before 
the last day of such 12-month period, the Administrator shall 
transmit to Congress a report on the reasons for not meeting 
such time period and the expected date of such designation.
  (b) Routes or Corridors.--In consultation with the [Director] 
Secretary of the Interior and the advisory group established 
under section 805, the Administrator shall establish, by rule, 
routes or corridors for commercial air tour operations (as 
defined in section 40128(f) of title 49, United States Code) by 
fixed-wing and helicopter aircraft that employ quiet aircraft 
technology for--
          (1) tours of the Grand Canyon originating in Clark 
        County, Nevada; and
          (2) ``local loop'' tours originating at the Grand 
        Canyon National Park Airport, in Tusayan, Arizona, 
        provided that such routes or corridors can be located 
        in areas that will not negatively impact the 
        substantial restoration of natural quiet, tribal lands, 
        or safety.
  (c) Operational Caps.--Commercial air tour operations by any 
fixed-wing or helicopter aircraft that employs quiet aircraft 
technology and that replaces an existing aircraft shall not be 
subject to the operational flight allocations that apply to 
other commercial air tour operations of the Grand Canyon, 
provided that the cumulative impact of such operations does not 
increase noise at the Grand Canyon.
  (d) Modification of Existing Aircraft To Meet Standards.--A 
commercial air tour operation by a fixed-wing or helicopter 
aircraft in a commercial air tour operator's fleet on the date 
of the enactment of this Act that meets the requirements 
designated under subsection (a), or is subsequently modified to 
meet the requirements designated under subsection (a), may be 
used for commercial air tour operations under the same terms 
and conditions as a replacement aircraft under subsection (c) 
without regard to whether it replaces an existing aircraft.
  (e) Mandate to Restore Natural Quiet.--Nothing in this Act 
shall be construed to relieve or diminish--
          (1) the statutory mandate imposed upon the Secretary 
        of the Interior and the Administrator of the Federal 
        Aviation Administration under Public Law 100-91 (16 
        U.S.C. 1a-1 note) to achieve the substantial 
        restoration of the natural quiet and experience at the 
        Grand Canyon National Park; and
          (2) the obligations of the Secretary and the 
        Administrator to promulgate forthwith regulations to 
        achieve the substantial restoration of the natural 
        quiet and experience at the Grand Canyon National Park.

SEC. 805. ADVISORY GROUP.

  (a) Establishment.--Not later than 1 year after the date of 
the enactment of this Act, the Administrator and the [Director 
of the National Park Service] Secretary of the Interior shall 
jointly establish an advisory group to provide continuing 
advice and counsel with respect to commercial air tour 
operations over and near national parks.
  (b) Membership.--(1) In general.--The advisory group shall be 
composed of--
          (A) a balanced group of--
                  (i) representatives of general aviation;
                  (ii) representatives of commercial air tour 
                operators;
                  (iii) representatives of environmental 
                concerns; and
                  (iv) representatives of Indian tribes;
          (B) a representative of the Federal Aviation 
        Administration; and
          (C) a representative of the [National Park Service] 
        Department of the Interior.
  (2) Ex officio members.--The Administrator (or the designee 
of the Administrator) and the [Director] Secretary of the 
Interior (or the designee of the [Director] Secretary of the 
Interior) shall serve as ex officio members.
  (3) Chairperson.--The representative of the Federal Aviation 
Administration and the representative of the [National Park 
Service] Department of the Interior shall serve alternating 1-
year terms as chairman of the advisory group, with the 
representative of the Federal Aviation Administration serving 
initially until the end of the calendar year following the year 
in which the advisory group is first appointed.
  (c) Duties.--The advisory group shall provide advice, 
information, and recommendations to the Administrator and the 
[Director] Secretary of the Interior--
          (1) on the implementation of this title and the 
        amendments made by this title;
          (2) on commonly accepted quiet aircraft technology 
        for use in commercial air tour operations over a 
        national park or tribal lands, which will receive 
        preferential treatment in a given air tour management 
        plan;
          (3) on other measures that might be taken to 
        accommodate the interests of visitors to national 
        parks; and
          (4) at the request of the Administrator and the 
        [Director] Secretary of the Interior, safety, 
        environmental, and other issues related to commercial 
        air tour operations over a national park or tribal 
        lands.
  (d) Compensation; Support; FACA.--(1) Compensation and 
travel.--Members of the advisory group who are not officers or 
employees of the United States, while attending conferences or 
meetings of the group or otherwise engaged in its business, or 
while serving away from their homes or regular places of 
business, may be allowed travel expenses, including per diem in 
lieu of subsistence, as authorized by section 5703 of title 5, 
United States Code, for persons in the Government service 
employed intermittently.
  (2) Administrative support.--The Federal Aviation 
Administration and the [National Park Service] Department of 
the Interior shall jointly furnish to the advisory group 
clerical and other assistance.
  (3) Nonapplication of FACA.--Section 14 of the Federal 
Advisory Committee Act (5 U.S.C. App.) does not apply to the 
advisory group.

           *       *       *       *       *       *       *

SEC. 807. REPORTS.

  (a) Overflight Fee Report.--Not later than 180 days after the 
date of the enactment of this Act, the Administrator shall 
transmit to Congress a report on the effects overflight fees 
are likely to have on the commercial air tour operation 
industry. The report shall include, but shall not be limited 
to--
          (1) the viability of a tax credit for the commercial 
        air tour operators equal to the amount of any 
        overflight fees charged by the [National Park Service] 
        Department of the Interior; and
          (2) the financial effects proposed offsets are likely 
        to have on Federal Aviation Administration budgets and 
        appropriations.
  (b) Quiet Aircraft Technology Report.--Not later than 2 years 
after the date of the enactment of this Act, the Administrator 
and the [Director of the National Park Service] Secretary of 
the Interior shall jointly transmit a report to Congress on the 
effectiveness of this title in providing incentives for the 
development and

           *       *       *       *       *       *       *

                           RAILWAY LABOR ACT

                            [45 U.S.C. 156]

SEC. 6. PROCEDURE IN CHANGING RATES OF PAY, RULES, OR WORKING 
                    CONDITIONS.

  Carriers and representatives of the employees shall give at 
least thirty days' written notice of an intended change in 
[agreements] agreements, including changes sought in the 
context of a merger or acquisition involving the carrier, 
affecting rates of pay, rules, or working conditions, and the 
time and place for the beginning of conference between the 
representatives of the parties interested in such intended 
changes shall be agreed upon within ten days after the receipt 
of said notice, and said time shall be within the thirty days 
provided in the notice. In every case where such notice of 
intended change has been given, or conferences are being held 
with reference thereto, or the services of the Mediation Board 
have been requested by either party, or said Board has 
proffered its services, rates of pay, rules, or working 
conditions shall not be altered by the carrier until the 
controversy has been finally acted upon as required by section 
5 of this Act, by the Mediation Board, unless a period of ten 
days has elapsed after termination of conferences without 
request for or proffer of the services of the Mediation Board.

                                  
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