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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1076 Introduced in Senate (IS)]

  1st Session
                                S. 1076

To amend title 49, United States Code, to authorize appropriations for 
the Federal Aviation Administration for fiscal years 2008 through 2010, 
to improve aviation safety and capacity, to provide stable, cost-based 
   funding for the national aviation system, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 29, 2007

 Mr. Inouye  (for himself and Mr. Stevens) (by request) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL

 
To amend title 49, United States Code, to authorize appropriations for 
the Federal Aviation Administration for fiscal years 2008 through 2010, 
to improve aviation safety and capacity, to provide stable, cost-based 
   funding for the national aviation system, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Next Generation 
Air Transportation System Financing Reform Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; Table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Effective date.
                        TITLE I--AUTHORIZATIONS

Sec. 101. Authorizations for General Fund, air traffic functions, 
                            safety and operations.
Sec. 102. Airport planning and development and noise compatibility 
                            planning and programs.
Sec. 103. Airline data and analysis.
Sec. 104. Office of Commercial Space Transportation.
Sec. 105. Transition.
                      TITLE II--USER FEE AUTHORITY

Sec. 201. Fees.
Sec. 202. Conforming Amendments.
                 TITLE III--AIRPORT IMPROVEMENT PROGRAM

Sec. 301. Reform of passenger facility charge authority.
Sec. 302. Amendments to AIP definitions.
Sec. 303. Amendments to grant assurances.
Sec. 304. Government share of project costs.
Sec. 305. Amendments to allowable costs.
Sec. 306. Simplification and reform of apportionment formulas.
Sec. 307. Minimum amount for discretionary fund.
Sec. 308. Funding of space transportation infrastructure grants 
                            program.
Sec. 309. Repeal of small airport fund.
Sec. 310. Creation of new small airport set-aside, and repeal of 
                            military and reliever airport set-asides.
Sec. 311. Military Airport Program.
Sec. 312. Sale of private airport to public sponsor.
Sec. 313. Sunset of airport security program.
Sec. 314. Sunset of pilot program for purchase of airport development 
                            rights.
Sec. 315. Extension of grant authority for compatible land use planning 
                            and projects by State and local 
                            governments.
Sec. 316. Midway Island Airport.
Sec. 317. Pilot program for airport takover of air navigation 
                            facilities.
Sec. 318. ADS-B Support Pilot Program
Sec. 319. AIP eligibility for Metropolitan Washington Airports 
                            Authority.
Sec. 320. Miscellaneous Amendments.
                 TITLE IV--MANAGEMENT AND ORGANIZATION

Sec. 401. Air Transportation System Advisory Board.
Sec. 402. Facilitation of Next Generation air traffic services.
Sec. 403. Clarification of authority to enter into reimbursable 
                            agreements.
Sec. 404. Definition of air navigation facility.
Sec. 405. Improved management of property inventory.
Sec. 406. Clarification to acquisition reform authority.
Sec. 407. Assistance to foreign aviation authorities. 
Sec. 408. Presidential Rank Award Program. 
Sec. 409. Realignment and consolidation of aviation facilities and 
                            services.
Sec. 410. Operational and approach procedures by third parties through 
                            delegation.
Sec. 411. Judicial review of denial of airman certificates.
Sec. 412. Release of data relating to abandoned type certificates and 
                            supplemental type certificates.
Sec. 413 Design Organization Certificates.
Sec. 414. Contract tower program.
Sec. 415. Enhanced Oversight of Next Generation Air Transportation 
                            System Joint Planning and Development 
                            office.
     TITLE V--AVIATION SAFETY, SECURITY, CAPACITY AND CONNECTIVITY 
                              IMPROVEMENTS

Sec. 501. Disclosure of data to Federal agencies in interest of 
                            national security.
Sec. 502. FAA access to criminal history records or database systems.
Sec. 503. Allocation of operating authorizations at LaGuardia airport.
Sec. 504. Pilot program for market-based mechanisms at congested 
                            airports.
          TITLE VI--ENVIRONMENTAL STEWARDSHIP AND STREAMLINING

Sec. 601. Airport Cooperative Research Program.
Sec. 602. State Block Grant Program.
Sec. 603. Airport funding of special studies or reviews.
Sec. 604. Environmental Mitigation Demonstration Pilot Program.
Sec. 605. Grant eligibility for assessment of flight procedures.
Sec. 606. Research consortium for lower energy, emissions and noise 
                            technology partnership.
Sec. 607. Amendments to Air Tour Management Program.
                     TITLE VII--AVIATION INSURANCE

Sec. 701. General Authority.
Sec. 702. Extension of authority to limit third party liability of air 
                            carriers arising out of acts of terrorism.
Sec. 703. Clarification on reinsurance authority.
Sec. 704. Use of independent claims adjusters.
Sec. 705. Extension of aviation program authority.
                TITLE VIII--AVIATION SERVICE IMPROVMENTS

Sec. 801. Extension of competitive access reports.
Sec. 802. Essential air service reform.
Sec. 803. Termination of DOT authority to set international mail rates.
Sec. 804. Air carriage of international mail.
Sec. 805. Contents of competition plans.
Sec. 806. Airport privatization.
Sec. 807. Clarification of air carrier fee disputes.
Sec. 808. Amendments to chapter 415.
               TITLE IX--INTERNAL REVENUE CODE AMENDMENTS

Sec. 901. Amendment of 1986 Code.
Sec. 902. Modifications to tax on aviation fuel.
Sec. 903. Modifications to tax on transportation of persons by air.
Sec. 904. Extension of Airport and Airway Trust Fund expenditure 
                            authority.

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

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

SEC. 3. EFFECTIVE DATE.

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

                        TITLE I--AUTHORIZATIONS

SEC. 101. AUTHORIZATIONS FOR SAFETY AND OPERATIONS, AIR TRAFFIC 
              FUNCTIONS, RESEARCH AND DEVELOPMENT.

    (a) In General.--Part C of subtitle VII is amended by striking 
chapter 482 and inserting in lieu thereof the following:

  ``CHAPTER 482--AUTHORIZATIONS FOR AIR TRAFFIC FUNCTIONS, SAFETY AND 
                OPERATIONS, AND RESEARCH AND DEVELOPMENT

``Sec.
``48201. Air traffic organization.
``48202. Safety and operations.
``48203. Civil aviation research and development.
``48204. General fund authorization.
``Sec. 48201. Air traffic organization
    ``(a) Air Traffic Organization Account.--On October 1, 2007, the 
Secretary of the Treasury shall establish on the books of the Treasury 
a separate account to be known as the Air Traffic Organization Account.
    ``(b) Authorization of Appropriations.--In addition to amounts from 
the general fund of the Treasury as authorized in section 48204, 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) for capital, operating and overhead costs of providing air 
traffic control and related services:
            ``(1) $7,915,516,000 for fiscal year 2008.
            ``(2) $1,130,000,000 for fiscal year 2009.
            ``(3) $1,126,000,000 for fiscal year 2010.
    ``(c) User Fees.--
            ``(1) In addition to amounts authorized under subsection 
        (b), amounts credited to the account established under 
        subsection (a) from fees collected under section 45305 of this 
        title are authorized to be used for capital, operating and 
        overhead costs of providing air traffic control and related 
        services, as well as for the costs related to the assessment 
        and collection of these fees.
            ``(2) Notwithstanding any other provision of law, amounts 
        credited to the account established under subsection (a) shall 
        be used only to carry out the air traffic functions of the 
        Federal Aviation Administration.
    ``(d) Availability of Amounts.--Amounts appropriated under this 
section shall remain available until expended.
``Sec. 48202. Safety and operations
    ``(a) Safety and Operations Account.--On October 1, 2007, the 
Secretary of the Treasury shall establish on the books of the Treasury 
a separate account to be known as the Safety and Operations Account.
    ``(b) Authorization of Appropriations.--In addition to amounts from 
the general fund of the Treasury as authorized in section 48204, 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) for programs, activities, and services relating to the 
Federal Aviation Administration's safety programs, services to the 
commercial space industry and other staff support functions:
            ``(1) $671,594,000 for fiscal year 2008.
            ``(2) $69,000,000 for fiscal year 2009.
            ``(3) $69,000,000 for fiscal year 2010.
    ``(c) User Fees.--
            ``(1) Amounts credited to the account established under 
        subsection (a) from fees collected under sections 45305 and 
        45306 of this title, are authorized to be used for programs, 
        activities and services relating to the Federal Aviation 
        Administration's safety programs and other staff support 
        functions, as well as for the costs related to the assessment 
        and collection of these fees.
            ``(2) Notwithstanding any other provision of law, amounts 
        credited to the account established under subsection (a) shall 
        be used only to carry out the safety programs, services to the 
        commercial space industry, and staff support functions of the 
        Federal Aviation Administration.
    ``(d) Availability of Amounts.--Amounts appropriated under this 
section shall remain available until expended.
``Sec. 48203. Civil aviation research and development
    ``(a) Authorization.--In addition to amounts from the general fund 
of the Treasury as authorized in section 48204, not more than the 
following amounts may be appropriated 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 the Secretary of Transportation for 
conducting civil aviation research and development under sections 
44504, 44505, 44507, 44509, and 44511 through 44513 of this title:
            ``(1) $122,867,000 for fiscal year 2008.
            ``(2) $174,000,000 for fiscal year 2009.
            ``(3) $174,000,000 for fiscal year 2010.
    ``(b) Availability of Amounts.--Amounts appropriated under this 
section shall remain available until expended.
``Sec. 48204. General fund authorization
    ``Not more than the following amounts may be appropriated under 
this chapter from the general fund of the Treasury to the Secretary of 
Transportation for activities or services, the cost of which is not 
otherwise funded by fees established under chapter 453 of this title or 
by funds made available from the Airport and Airway Trust Fund, related 
to aviation safety regulation and oversight, research and development, 
air traffic services provided to military, public or air ambulance 
aircraft, operation of Flight Service Stations and Automated Flight 
Service Stations, operation of air traffic control towers at airports 
with fewer than 100,000 passenger boardings per year, services to the 
commercial space industry, or other Federal Aviation Administration 
programs in the general public interest, including the capital, 
operating, and overhead costs for such activities or services:
            ``(1) $2,618,322,000 for fiscal year 2008;
            ``(2) $2,582,000,000 for fiscal year 2009; and
            ``(3) $2,582,000,000 for fiscal year 2010.''.
    (b) Conforming Amendment.--The analysis for Part C of Subtitle VII 
is amended by revising the entry for chapter 482 to read as follows:

``482. Authorizations for Air Traffic Functions, Safety and    48201''.
Operations, and Research and Development.

SEC. 102. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY 
              PLANNING AND PROGRAMS.

    (a) Authorization.--Section 48103 is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        total'';
            (2) by striking ``September 30, 2003,'' and inserting 
        ``September 30, 2007,'';
            (3) by striking paragraphs (1) through (4) and inserting 
        the following:
            ``(1) $2,750,000,000 for fiscal year 2008;
            ``(2) $2,900,000,000 for fiscal year 2009; and
            ``(3) $3,050,000,000 for fiscal year 2010.''; and
            (4) by adding at the end the following:
    ``(b) Airport Cooperative Research Program.--Not more than 
$15,000,000 per year for fiscal years 2008, 2009, and 2010 may be 
appropriated to the Secretary of Transportation from the amounts made 
available each year under subsection (a) for the Airport Cooperative 
Research Program under section 44511 of this title, of which not less 
than $5,000,000 per year shall be for research activities related to 
the airport environment, including reduction of community exposure to 
civil aircraft noise, reduction of civil aviation emissions, or 
addressing water quality issues.''.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``September 30, 2007,'' and inserting ``September 30, 2010,''.

SEC. 103. AIRLINE DATA AND ANALYSIS.

    (a) Authorization.--There is authorized to be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust Fund 
established by section 9502 of the Internal Revenue Code of 1986 (26 
U.S.C. 9502), $4,000,000 per year for fiscal year 2008 and $6,000,000 
for fiscal years 2009 and 2010 to fund airline data collection and 
analysis by the Bureau of Transportation Statistics in the Research and 
Innovative Technology Administration of the Department of 
Transportation.
    (b) Economic Data Program Reform.--In fiscal year 2009, the 
Secretary shall reform, by the most efficient means available, the 
aviation economic data program for the collection and dissemination of 
airline traffic and financial data.

SEC. 104. OFFICE OF COMMERCIAL SPACE TRANSPORTATION.

    Section 70119 is amended--
            (1) by striking ``and'' in paragraph (4);
            (2) by striking ``2009.'' in paragraph (5) and inserting 
        ``2009; and''; and
            (3) by adding at the end the following:
            ``(6) $15,224,000 for fiscal year 2010.''.

SEC. 105. TRANSITION.

    (a) Authorization for Transition Period.--For the purpose of 
supporting the transition to a user fee system of financing under 
chapter 453, not more than $1,360,000,000 is authorized to be 
appropriated to the Secretary of Transportation from the general fund 
of the Treasury to provide services for an initial period of 60 days 
for which user fees under sections 45305 (air traffic control and 
related fees) and 45306 (registration, certification and related fees) 
are assessed.
    (b) Fee Surcharge.--The Administrator of the Federal Aviation 
Administration shall, subject to appropriation in advance, impose and 
collect a surcharge on the user fees established under sections 45305 
and 45306 for fiscal year 2009 in an amount and manner so as to fully 
recover and return to the general fund in fiscal year 2009 the amount 
used for transition costs under this section.

                      TITLE II--USER FEE AUTHORITY

SEC. 201. FEES.

    (a) In General.--Chapter 453 is amended by adding at the end the 
following:
``Sec. 45305. Air traffic control and related fees
    ``(a) Schedule of Fees.--
            ``(1) Not later than the date of transition, the 
        Administrator of the Federal Aviation Administration shall 
        establish fees for air traffic control and related activities, 
        services, facilities and equipment provided by, or on behalf 
        of, the Administration in accordance with this section. Except 
        as provided in subsection (c), owners or operators of aircraft 
        in the national airspace system shall pay the fees assessed 
        under this section. The Administrator may establish separate 
        fees for aircraft operating in terminal, en route, or oceanic 
        airspace.
            ``(2) For purposes of this section and section 45306, the 
        term `date of transition' means October 1, 2008.
            ``(3) In establishing fees under paragraph (1), the 
        Administrator may establish interim fees for a period not to 
        exceed 1 year after the date of transition, and may impose a 
        surcharge on such fees in order to recover the full costs of 
        services during the initial period of transition to user fees. 
        The establishment of such interim fees would not be subject to 
        the requirements of subsection (e)(2).
            ``(4) In accordance with this section, the Administrator 
        may periodically modify the fees established under this section 
        either on the Administrator's own initiative, based on the 
        requirements of the agency or the users of the National 
        Airspace System, or on a recommendation from the Board under 
        subsection (e)(2) of this section.
    ``(b) Basis for Fees; Computation Methods.--
            ``(1) En route and oceanic.--In establishing fees for 
        aircraft operating in en route or oceanic airspace, including 
        fees for aircraft that operate in United States controlled 
        airspace but neither take off from, nor land in, the United 
        States, the Administrator may base the fee on distance 
        traveled, or on any other method that is consistent with the 
        treaties and international agreements to which the United 
        States is a party.
            ``(2) Terminal airspace.--For aircraft operations in 
        terminal airspace, the Administrator may establish a fee with 
        the following elements:
                    ``(A) For takeoffs and landings at airports with 
                greater than 100,000 passenger boardings per year.
                    ``(B) That may be based on the weight of the 
                aircraft.
                    ``(C) Specifically for aircraft operating in 
                terminal airspace for a large hub airport, as defined 
                by section 40102(a)(29).
                    ``(D) Specifically for terminal airspace for a 
                large hub airport that varies with the time of day, day 
                of the week, or for a particular large hub airport if 
                the Administrator determines--
                            ``(i) that such airspace is congested;
                            ``(ii) that such congestion results in 
                        whole or in part from the limitation on the 
                        capacity of the large hub airport or airports; 
                        and
                            ``(iii) that establishing such a fee will 
                        help reduce delays in the national airspace 
                        system.
                    ``(E) A fee that is different for nighttime 
                operations than for daytime operations.
            ``(3) Quantitative standards.--For the purpose of the 
        determinations required by paragraph (2)(D), the Administrator 
        shall issue quantitative standards for the levels of airspace 
        and airport congestion, operating delays, effect of airport 
        delay on national system delay, and feasibility of increasing 
        the capacity of a congested airport, and make such 
        determinations in accordance with those standards.
            ``(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 
        terminal, en route or oceanic airspace.
            ``(5) Incentive for equipage.--The Administrator may 
        establish reduced fees for aircraft that are equipped with 
        avionics whose use the Administrator determines would enhance 
        the safety or efficiency of the National Airspace System if the 
        Administrator finds that such a fee structure would create an 
        incentive for the purchase and installation of such equipment.
            ``(6) Relation to costs.--The fees established under this 
        section 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 agency's cost accounting system and cost 
        allocation system to users. For purposes of this paragraph, 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, but shall not include the 
        cost of providing services to aircraft described in subsection 
        (c).
            ``(7) Reserve.--The fees that the Administrator establishes 
        under this section may also include amounts sufficient to cover 
        the costs of providing air traffic control and related 
        activities, services, facilities and equipment in the event 
        that receipts are less than projected, whether such a shortfall 
        is caused by a decrease in aircraft operations, delinquent 
        payment of fees by any person, or for another comparable 
        reason.
            ``(8) Annual review.--The Administrator shall provide for 
        an annual independent review to validate that the agency used 
        actual costs for the year, which were prepared in accordance 
        with generally accepted accounting principles, and compiled 
        those costs in accordance with the agency's documented cost 
        allocation methodology.
            ``(9) Fees credited as offsetting collections.--Any fee 
        authorized to be collected under this section shall, subject to 
        appropriation made in advance--
                    ``(A) be credited as offsetting collections to the 
                account established under section 48201(a) of this 
                title; and
                    ``(B) be available to the Administrator for 
                expenditure only to pay the costs of activities and 
                services for which the fee is imposed, including the 
                costs to determine, assess, review and collect the fee.
            ``(10) Effect of law on fee collection.--The Administrator 
        may continue to assess and collect and spend fees 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.
    ``(c) Exceptions.--
            ``(1) Military and other public aircraft.--Fees may not be 
        assessed under this section for air traffic control and related 
        services provided to military aircraft, public aircraft (as 
        defined in section 40102 of this subtitle), air ambulance 
        aircraft, or to military or non-commercial civil aircraft of a 
        foreign government.
            ``(2) General aviation operations.--Except for fees 
        established for operations in terminal airspace for a large hub 
        airport under subsection (b)(2), no fees may be established 
        under this section for air traffic control and related services 
        provided to aircraft operations using fuel for which a tax was 
        paid under section 4081(a)(2) of the Internal Revenue Code of 
        1986, except taxes paid at the rate specified in section 
        4081(a)(2)(C)(i) of such Code. The exception provided by this 
        paragraph shall cease to be effective if the rate of tax for 
        fuel under section 4081(a)(2) of such Code is lower than 70.0 
        cents per gallon, starting on the date of transition, unless 
        the lower rate is the result of adjustments made under section 
        4081(a)(2) of the Internal Revenue Code of 1986.
            ``(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, or a general aviation operation, or a 
        military or public aircraft operation, for purposes of this 
        section.
            ``(4) Canada to canada flights.--The Administrator may 
        waive a fee 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 fee for such 
        flights would be in the public interest.
    ``(d) Administrative Provisions.--
            ``(1) Fees payable to the administrator.--Fees assessed and 
        amounts collected under this section are payable to the 
        Administrator. The Administrator may refund any fee, or portion 
        thereof, paid by mistake in excess of the amount required.
            ``(2) Collection procedures.--The Administrator shall 
        establish procedures for the collection of fees. These 
        procedures shall establish the frequency of payment, deadlines 
        for payment, a maximum amount of fees 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 fees.
            ``(3) Failure to pay required fees.--If the Administrator 
        determines that any person has failed to pay fees when due 
        under this section, or to comply with any limitation or 
        condition on payment under this section, or 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 of 
                the Treasury based on the average of bond equivalent 
                yields on 13-week Treasury bills auctioned during the 
                previous calendar quarter, to be redetermined 
                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 fees owed by withholding 
                any payment otherwise owed or due to the person by the 
                Secretary or the Administrator;
                    ``(D) upon 24 hours notice, terminate, reduce, or 
                withhold the provision of non-emergency air traffic 
                control and related services to such person, except 
                that, in any case involving a foreign air carrier, the 
                Administrator shall take such actions as are necessary 
                to comply with applicable international agreements; or
                    ``(E) 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 fees when due, the 
        Administrator may--
                    ``(A) change the required payment schedule for such 
                person; or
                    ``(B) upon 24 hours notice, terminate, reduce, or 
                withhold the provision of non-emergency air traffic 
                control and related services to such person, except 
                that, in any case involving a foreign air carrier, the 
                Administrator shall take such actions as are necessary 
                to comply with applicable international agreements.
            ``(5) Payment not stayed pending review.--In any case where 
        a person seeks administrative review of the Administrator's 
        action under this section, the collection of fees from that 
        person may not be stayed pending resolution of the case.
    ``(e) Consultation Requirements; Approval of Fees.--
            ``(1) Prior to establishing or modifying fees under this 
        section or section 45306 of this title, the Administrator shall 
        consult with air carriers, including foreign air carriers, 
        consistent with international agreements, and any other persons 
        subject to such fees, and any other member of the public who 
        wishes to file comments. For purposes of the section, the term 
        `consult' means to afford the opportunity to provide comments 
        to, and have such comments considered by, the Administrator.
            ``(2) Prior to establishing or modifying fees under this 
        section or section 45306 of this title, the Administrator shall 
        consult with and seek the recommendations of the type and level 
        of such fees from the Air Transportation System Advisory Board 
        established under section 106(p) of this title. The Board may, 
        from time to time, recommend that the Administrator modify 
        established fees based on the needs of the agency or the users 
        of the National Airspace System. If the Board fails to 
        recommend approval of any fee proposed by the Administrator, or 
        if the Administrator fails to adopt the recommendation of the 
        Board, the Administrator may establish or maintain such fees 
        only after publishing in the Federal Register a written 
        determination setting forth the reasons for the Administrator's 
        establishment or modification of the fees and summarizing the 
        views of the Board.
            ``(3) Any person who is subject to fees established in this 
        section or section 45306 of this title, and who objects to the 
        establishment or amount of such fees may appeal that decision 
        exclusively to the Secretary of Transportation. The Secretary 
        may disapprove the establishment or modification of fees if the 
        Secretary finds that the fees--
                    ``(A) are not, in the case of fees under this 
                section, based on costs as described in subsection 
                (b)(6);
                    ``(B) do not fairly allocate system costs among 
                users who pay fees;
                    ``(C) unreasonably discriminate against a 
                particular category of users of the system; or
                    ``(D) are not in accordance with the strategic plan 
                of the Administration.
            ``(4) The decision of the Administrator to establish or 
        modify a fee or schedule of fees under this section or section 
        45306 of this title shall be effective unless disapproved by 
        the Secretary within 60 days after submission of the 
        Administrator's decision to the Secretary. The decision of the 
        Secretary constitutes final agency action and is not subject to 
        judicial review.
    ``(f) Effect on Other Fees.--Unless otherwise specified, nothing in 
this section or section 45306 shall be construed as affecting fees 
previously authorized and established under this chapter.
    ``(g) Exemption From Rulemaking.--The requirements applicable to 
developing and issuing rules under title 5, United States Code, shall 
not apply to the actions of the Secretary, Administrator, or Board 
under this section.
    ``(h) Status of Airport.--Based on fiscal year 2006 data, the 
Administrator shall publish a list of airports that meet the criteria 
for a large hub airport under subsection (b)(2). The Administrator 
shall periodically update such list. If in the fiscal year during which 
the list is first published or in any subsequent fiscal year in which 
the list of airports is updated, an airport meets the criteria for a 
large hub airport under subsection (b)(2), such airport shall be deemed 
to remain in such status for 3 years regardless of fluctuation in the 
passenger boardings during that time.
    ``(i) Definitions.--For the purposes of this section--
            ``(1) 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.
            ``(2) Enroute airspace.--The term `en route airspace' means 
        airspace encompassing Class A and Class E airspace listed in 
        part 71 of title 14 of the Code of Federal Regulations and 
        subpart B of Federal Aviation Administration Order 7400.9N or a 
        successor order;
            ``(3) Terminal airspace.--The term `terminal airspace' 
        means airspace encompassing Class B, Class C, and Class D 
        airspace listed in part 71 of title 14 of the Code of Federal 
        Regulations and subpart B of Federal Aviation Administration 
        Order 7400.9N or a successor order.
            ``(4) Oceanic airspace.--The term `oceanic airspace' means 
        United States-controlled airspace over an ocean.
``Sec. 45306. Registration, certification and related fees
    ``(a) Imposition of Registration Fees.--On the date of transition, 
the Administrator shall establish the following fees for the following 
services or activities:
            ``(1) $130 for registering an aircraft.
            ``(2) $45 for replacing an aircraft registration.
            ``(3) $130 for issuing an original dealer's aircraft 
        certificate.
            ``(4) $105 for issuing an additional aircraft certificate.
            ``(5) $80 for issuing a special registration number.
            ``(6) $50 for issuing a renewal of a special registration 
        number.
            ``(7) $130 for recording a security interest.
            ``(8) $130 for recording a security interest in aircraft 
        parts.
            ``(9) $50 for issuing an airman certificate.
            ``(10) $25 for issuing a replacement airman certificate.
            ``(11) $42 for issuing an airman medical certificate.
            ``(12) $100 for providing legal title opinions pertaining 
        to aircraft transactions.
    ``(b) Establishment of Certification Fees.--
            ``(1) In general.--The Administrator shall establish fees 
        for the following services or activities:
                    ``(A) The appointment of a designee (other than 
                designated medical examiners).
                    ``(B) The appointment of delegated organizations.
                    ``(C) The training of a designee.
                    ``(D) The issuance of a certificate to a flight 
                school under Part 141 of title 14 of the Code of 
                Federal Regulations.
                    ``(E) The issuance of a certificate to a training 
                center under Part 142 of title 14 of the Code of 
                Federal Regulations.
                    ``(F) The issuance of a certificate to a large 
                domestic repair station under part 145 of title 14 of 
                the Code of Federal Regulations.
                    ``(G) The issuance of a certificate to a medium 
                domestic repair station under part 145 of title 14 of 
                the Code of Federal Regulations.
                    ``(H) The issuance of a certificate to a small 
                domestic repair station under part 145 of title 14 of 
                the Code of Federal Regulations.
                    ``(I) The issuance of a certificate to a large 
                foreign repair station under part 145 of title 14 of 
                the Code of Federal Regulations.
                    ``(J) The issuance of a certificate to a medium 
                foreign repair station under part 145 of title 14 of 
                the Code of Federal Regulations.
                    ``(K) The issuance of a certificate to a small 
                foreign repair station under part 145 of title 14 of 
                the Code of Federal Regulations.
                    ``(L) The issuance of a certificate to a 
                maintenance technical school under part 147 of title 14 
                of the Code of Federal Regulations.
                    ``(M) Training provided to foreign aviation 
                authorities.
            ``(2) Relation to costs.--The fees that the Administrator 
        establishes and assesses under this section, shall be based on 
        the costs to the Administration of providing such activities 
        and services using the available data derived from the agency's 
        cost accounting system and cost allocation system to users. For 
        purposes of this section, the term `costs' shall mean those 
        costs associated with capital, operation and maintenance, and 
        overhead, including the projected costs for the period during 
        which the services are provided.
    ``(c) Fees for Other Services.--The Administrator may establish and 
collect such additional fees as may be necessary to cover the cost of 
aviation certification, regulation, and related services not enumerated 
in subsection (b), including any additional cost of providing services 
outside the United States.
    ``(d) Fees Credited as Offsetting Collections.--
            ``(1) Any fee authorized to be collected under this section 
        shall, subject to appropriation made in advance--
                    ``(A) be credited as offsetting collections to the 
                account established under section 48202(a) of this 
                title; and
                    ``(B) be available for expenditure only to pay the 
                costs of activities and services for which the fee is 
                imposed, including the costs to determine, assess, 
                review and collect the fee.
            ``(2) The Administrator may continue to assess and collect 
        and spend fees 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.
    ``(e) Adjustments.--The Administrator shall periodically adjust the 
fees established by subsections (a) or (b)--
            ``(1) to reflect changes in the Consumer Price Index of All 
        Urban Consumers published by the Secretary of Labor;
            ``(2) when data reveal that the cost of providing the 
        service is higher or lower than the cost data that was used to 
        establish the fee then in effect; or
            ``(3) when the Board recommends an adjustment in the fees, 
        in accordance with the procedures under subsection (g).
    ``(f) Administrative Provisions.--
            ``(1) Fees payable to the administrator.--All fees assessed 
        and amounts collected under this section are payable to the 
        Administrator. The Administrator may refund any fee, or portion 
        thereof, paid by mistake in excess of the amount required.
            ``(2) Collection procedures.--The Administrator shall 
        establish procedures for the collection of fees. These 
        procedures shall establish the frequency of payment, deadlines 
        for payment, a maximum amount of fees 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 fees.
            ``(3) Failure to pay required fees.--If the Administrator 
        determines that any person has failed to pay fees when due 
        under this section or to comply with any limitation or 
        condition on payment under this section, the Administrator 
        may--
                    ``(A) assess interest charges, using a rate equal 
                to 150 percent of a rate determined by the Secretary of 
                the Treasury based on the average of bond equivalent 
                yields on 13-week Treasury bills auctioned during the 
                previous calendar quarter, to be redetermined 
                quarterly, on amounts that have not been paid by the 
                deadline;
                    ``(B) change the required payment schedule for such 
                person;
                    ``(C) upon 24 hours notice to the person, 
                terminate, reduce or withhold non-emergency services or 
                in any case involving a foreign air carrier, the 
                Administrator shall take such actions as are necessary 
                to comply with applicable international agreements; 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 a person will not pay 
        its required fees when due, the Administrator may--
                    ``(A) change the required payment schedule for such 
                person; or
                    ``(B) upon 24 hours notice, terminate, reduce, or 
                withhold non-emergency services to such person, except 
                that, in any case involving a foreign air carrier, the 
                Administrator shall take such actions as are necessary 
                to comply with applicable international agreements.
            ``(5) Payment not stayed pending review.--In any case where 
        a person seeks administrative review of the Administrator's 
        action under this section, the collection of fees from that 
        person may not be stayed pending resolution of the case.
    ``(g) Procedure for Imposition of Fees.--In establishing or 
modifying fees under this section, the procedures and requirements of 
section 45305(e) of this title shall apply.
    ``(h) Exemption From Rulemaking.--The requirements applicable to 
developing and issuing rules under title 5, United States Code, shall 
not apply to the actions of the Secretary, Administrator, or Board 
under this section.
``Sec. 45307. Rules of construction
    Notwithstanding any other law, the fees computed, established, 
assessed, modified, or approved under this chapter shall be governed by 
the provisions of this chapter and not the provisions of section 9701 
of title 31.
``Sec. 45308. Borrowing authority
    ``(a) In General.--
            ``(1) In order to support the transition to the Next 
        Generation Air Transportation System, in fiscal years 2013 
        through 2017 the Secretary of Transportation is authorized to 
        issue obligations to the Secretary of the Treasury to finance 
        capital investments in the facilities and equipment of the air 
        traffic control system to be owned and operated by the Federal 
        Aviation Administration. The Secretary of the Treasury, in the 
        Secretary's discretion, may purchase any such obligations, 
        provided that the Secretary first determines that there is 
        reasonable assurance of repayment of such obligations.
            ``(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 of the Treasury. The aggregate amount of 
all such obligations shall not exceed $5,000,000,000 and all 
obligations shall be repaid by the Secretary of Transportation by the 
end of fiscal year 2017.
    ``(c) User Fee Increase.--Upon the issuance of obligations under 
paragraph (1), the Secretary of Transportation shall increase the user 
fees authorized in sections 45305 and 45306 in each of the fiscal years 
2013 to 2017 in the amounts required to repay such obligations with 
interest, and such payments shall have first priority in the use of 
fees collected during this period. This increase in user fees shall not 
be treated as discretionary offsetting collections 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 of the 
Treasury, 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 of the 
Treasury, 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 of the Treasury 
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 of the Treasury 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.''.
    (b) Conforming Amendments.--
            (1) The title of chapter 453 is amended to read as follows:

                  ``CHAPTER 453. FEES AND FINANCING''.

            (2) The chapter analysis for chapter 453 is amended by 
        inserting after the item relating to section 45304 the 
        following:

``45305. Air traffic control and related fees.
``45306. Certification, registration, and related fees.
``45307. Rules of construction.
``45308. Borrowing authority.''.
            (3) The analysis of Part A of subtitle VII is amended by 
        striking the item relating to chapter 453 and inserting the 
        following:

``453. FEES AND FINANCING..................................    45301''.

SEC. 202. CONFORMING AMENDMENTS.

    (a) Civil Penalties.--Section 46301(a) is amended--
            (1) by inserting ``chapter 453,'' in paragraph (1)(A) 
        before ``section 47107(b)'';
            (2) by striking ``or chapter 449'' in paragraph (5) and 
        inserting ``chapter 449''; and
            (3) by striking ``44907-44909)'' and inserting ``44907-
        44909), or chapter 453''.
    (b) Fees for Overflights, Foreign Services, and Services to General 
Aviation.--Effective October 1, 2008, sections 45301 and 45302 are 
repealed.
    (c) Administrative Provisions.--Effective October 1, 2008, in 
section 45303 is amended by striking (a), (b), and (c) and 
redesignating subsections (d), (e), and (f) as subsections (a), (b), 
and (c), respectively.

           TITLE III--AIRPORT IMPROVEMENT PROGRAM AMENDMENTS

SEC. 301. REFORM OF PASSENGER FACILITY CHARGE AUTHORITY.

    (a) Broadening Eligibility.--
            (1) Section 40117 is amended--
                    (A) by striking the section caption and inserting 
                the following:
``Sec. 40117. Passenger facility charges'';
                    (B) by striking subparagraphs (A) through (G) of 
                subsection (a)(3) and inserting the following:
                    ``(A) A project for capital costs of the airport or 
                local airport system under section 47107(b)(1)(A) and 
                (B).
                    ``(B) A project for capital costs of a local 
                facility that is directly and substantially related to 
                air transportation of passengers or property and that 
                is available for public use under section 
                47107(b)(1)(C).'';
                    (C) by striking paragraph (4) and (5) of subsection 
                (a) and inserting the following:
            ``(4) Intermodal ground access project.--The term 
        `intermodal ground access project' means a local facility that 
        is directly and substantially related to the movement of 
        passengers or property in the form of a fixed guideway system 
        (as defined in section 5302 of this title) that is a component 
        of a fixed guideway system that provides transportation 
        services to the general public or that connects to such a fixed 
        guideway system.
            ``(5) Passenger facility charge.--The term `passenger 
        facility charge' means a charge imposed under this section.''; 
        and
                    (D) by striking ``fee.'' in subsection (a)(6) and 
                inserting ``charge.''.
            (2) Conforming amendments.--
                    (A) Section 47107(b)(1)(C) is amended to read as 
                follows:
            ``(C) any other local facility that is directly and 
        substantially related to air transportation of passengers or 
        property and that is available for public use.''.
                    (B) Section 47133(a)(3) is amended to read as 
                follows:
            ``(3) any other local facility that is directly and 
        substantially related to air transportation of passengers or 
        property and that is available for public use.''.
    (b) Increase in PFC Maximum Level.--Section 40117(b) is amended--
            (1) by striking ``fee'' each place it appears and inserting 
        ``charge'';
            (2) by striking ``The Secretary of Transportation may 
        authorize under this section an eligible agency to''in 
        paragraph (1) and inserting ``An eligible agency may'';
            (3) by striking ``or $3'' in paragraph (1) and inserting 
        ``$3, $4, $4.50, $5, or $6'';
            (4) by inserting after ``controls.'' in paragraph (1) ``An 
        eligible agency that is approved by the Administrator to 
        participate in the pilot program established under section 
        44518 of this title may impose a passenger facility charge of 
        $7.'';
            (5) by inserting ``directly or indirectly'' in paragraph 
        (2) after ``may not''; and
            (6) by striking paragraphs (4), (5) and (6).
    (c) Passenger Facility Charge Streamlining.--Section 40117(c) is 
amended to read as follows:
    ``(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 fee 
        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 copies 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) and (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, or an eligible agency proposing to 
                increase the level of the passenger facility charge to 
                be collected at the airport, must 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) a detailed financial plan for the 
                        proposed project; and
                            ``(iv) 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, or an eligible agency proposing to increase 
                the level of the passenger facility charge to be 
                collected, must 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 or 
                to a proposed increase in the level of a passenger 
                facility charge 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 or at the increased level, 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 intermodal ground access 
        project.--
                    ``(A) An eligible agency may not collect or use a 
                passenger facility charge to finance an intermodal 
                ground access project, 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. 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. 
                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) Conforming Amendments.--
            (1) Correction.--Subsections (d) through (m) of section 
        40117 are amended--
                    (A) by striking ``fee'' or ``fees'' each place it 
                appears and inserting ``charge'' or ``charges'', 
                respectively; and
                    (B) striking ``Fee'' in the subsection caption for 
                subsection (l), and ``Fees'' in the subsection captions 
                for subsections (e) and (m), and inserting ``Charge'' 
                and ``Charges'', respectively.
            (2) Limitations on approving applications.--Section 
        40117(d) is amended--
                    (A) by striking ``subsection (c) of this section to 
                finance a specific'' and inserting ``subsection (c)(6) 
                of this section to finance an intermodal ground 
                access'';
                    (B) by striking ``fee'' in paragraph (1) and 
                inserting ``charge'';
                    (C) by striking ``specific'' in paragraph (1);
                    (D) by striking paragraph (2) and inserting the 
                following:
            ``(2) the project is an eligible airport-related project; 
        and'';
                    (E) by striking ``each of the specific projects; 
                and'' in paragraph (3) and inserting ``the project.''; 
                and
                    (F) by striking paragraph (4).
            (3) Limitations on imposing fees.--Section 40117(e)(1) is 
        amended to read as follows: ``(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.''.
            (4) Limitations on contracts, leases, and use agreements.--
        Section 40117(f)(2) is amended--
                    (A) by striking ``long-term''; and
                    (B) by striking ``Secretary.'' and inserting 
                ``Secretary, except a project for replacement of 
                baggage conveyor systems and reconfiguration of 
                terminal baggage areas that the Secretary determines 
                are necessary to install bulk explosive detection 
                devices.''.
            (5) Compliance.--Section 40117(h) is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following:
            ``(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.''.
            (6) Pilot program for pfc at nonhub airports.--Section 
        40117(l) is amended--
                    (A) by striking ``(c)(2)'' in paragraph (2) and 
                inserting ``(c)(3)''; and
                    (B) by striking ``date that is 3 years after the 
                date of issuance of regulations to carry out this 
                subsection.''in paragraph (7) and inserting ``date of 
                issuance of regulations to carry out subsection (c) of 
                this section, as amended by the Next Generation Air 
                Transportation System Financing Reform Act of 2007.''.
            (7) Prohibition on approving pfc applications for airport 
        revenue diversion.--Section 47111(e) is amended in the first 
        sentence by striking ``sponsor'' the first place it appears and 
        all that follows and inserting ``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.''.

SEC. 302. AMENDMENTS TO AIP DEFINITIONS.

    Section 47102 is amended--
            (1) by striking ``20'' in paragraph (3)(B)(iv) and 
        inserting ``9'';
            (2) by adding at the end of paragraph (3) the following:
                    ``(M) construction of mobile refueler parking 
                within a fuel farm at a nonprimary airport meeting the 
                requirements of section 112.8 of title 40 of the Code 
                of Federal Regulations;
                    ``(N) terminal development subject to the 
                provisions of section 47119.'';
            (3) by redesignating paragraphs (8) through (25) as 
        paragraphs (9) through (26), respectively and inserting the 
        following after paragraph (7):
            ``(8) a `general aviation airport' means a public airport 
        in a State that the Secretary determines--
                    ``(A) does not have scheduled service; or
                    ``(B) has scheduled service with less than 2,500 
                passenger boardings each year;'';
            (4) by redesignating paragraphs (24), (25), and (26) (as 
        redesignated) as paragraph (25) through (27), respectively, and 
        inserting the following after paragraph (23):
            ``(24) `revenue producing aeronautical support facilities' 
        means new fuel farms, new hangar buildings, self-service credit 
        card aeronautical fueling systems, airplane wash racks, major 
        rehabilitation of a hangar owned by a sponsor, or other 
        aeronautical support facilities that the Secretary determines 
        will increase the revenue producing ability of the airport.''; 
        and
            (5) by adding at the end thereof the following:
            ``(28) `terminal development' means--
                    ``(A) development of an airport passenger terminal 
                building, including terminal gates, access roads 
                servicing exclusively airport traffic that leads 
                directly to or from a terminal building, and walkways 
                that lead directly to or from a terminal building; and
                    ``(B) the cost of a vehicle under section 47119(a) 
                of this title.''.

SEC. 303. AMENDMENTS TO GRANT ASSURANCES.

    Section 47107 is amended--
            (1) by striking ``made;'' in subsection (a)(16)(D)(ii) and 
        inserting ``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;'';
            (2) by striking ``paid to the Secretary for deposit in the 
        Fund if another eligible project does not exist.'' in 
        subsection (c)(2)(A)(iii) and inserting ``reinvested in another 
        project at the airport or transferred to another airport as the 
        Secretary prescribes.'';
            (3) by redesignating paragraph (3) of subsection (c) as 
        paragraph (4) and inserting after paragraph (2) the following:
    ``(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 sections 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).''.

SEC. 304. GOVERNMENT SHARE OF PROJECT COSTS.

    Section 47109 is amended--
            (1) by redesignating paragraphs (3), (4), and (5) of 
        subsection (a) as paragraphs (4), (5), and (6), respectively;
            (2) by striking so much of subsection (a) as precedes 
        paragraph (4), as redesignated, and inserting the following:
    ``(a) In General.--Except as provided in subsection (b), (c) or (e) 
of this section, the United States Government's share of allowable 
project costs may not exceed--
            ``(1) 50 percent for an airfield pavement rehabilitation 
        project for runways, taxiways or aircraft aprons at a large hub 
        or medium hub primary airport, as defined in section 47102;
            ``(2) 75 percent for other approved airport development 
        projects at a large hub or medium hub primary airport, as 
        defined in section 47102;
            ``(3) 95 percent for a project funded by a grant issued to 
        a nonprimary airport that is not apportioned funds under 
        section 47114 of this title;'';
            (3) by striking ``47118(f)'' in subsection (f) and 
        inserting ``47118(e)''; and
            (4) by adding at the end the following:
    ``(e) Special Rule for Transition From Small Hub to Medium Hub 
Status.--If the status of a small hub 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 90 percent for 2 
fiscal years following such change in hub status.''.

SEC. 305. AMENDMENTS TO ALLOWABLE COSTS.

    Section 47110 is amended--
            (1) by striking subsection (d) and inserting the following:
    ``(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.''; and
            (2) by striking ``facilities, including fuel farms and 
        hangars,'' in subsection (h) and inserting ``facilities, as 
        defined by section 47102,''.

SEC. 306. SIMPLIFICATION AND REFORM OF APPORTIONMENT FORMULAS.

    Section 47114 is amended--
            (1) by striking ``primary airport'' in subsection (c)(1)(A) 
        and inserting ``small hub and nonhub primary airport'';
            (2) by striking ``$7.80'' in subsection (c)(1)(A)(i) and 
        inserting ``$15.60'';
            (3) by striking ``$5.20'' in subsection (c)(1)(A)(ii) and 
        inserting ``$10.40'';
            (4) by striking ``$2.60'' in subsection (c)(1)(A)(iii) and 
        inserting ``$5.20'';
            (5) by striking ``$.65'' in subsection (c)(1)(A)(iv) and 
        inserting ``$1.30'';
            (6) by striking ``$.50'' in subsection (c)(1)(A)(v) and 
        inserting ``$1.00'';
            (7) by striking ``$650,000''in subsection (c)(1)(B) and all 
        that follows through the end of the sentence and inserting 
        ``$1,000,000 nor more than $26,000,000 may be apportioned under 
        subparagraph (A) of this paragraph to an airport sponsor of 
        each large hub and medium hub primary airport for fiscal years 
        2008 and 2009, and to each airport sponsor for a small hub and 
        nonhub primary airport for each fiscal year.'';
            (8) by striking subsection (c)(1)(C) and inserting the 
        following:
            ``(C) Transitional rule for large and medium hub 
        airports.--In fiscal years 2008 and 2009, the Secretary shall 
        apportion to each large and medium hub airport an amount equal 
        to 50 percent of the amount that is calculated using the 
        formulas set forth in subparagraph (A).'';
            (9) by striking ``(B) or (C), as appropriate,'' in 
        subsection (c)(1)(D) and inserting ``(B)'';
            (10) by striking subparagraph (F) of subsection (c)(1) and 
        redesignating subparagraph (G) as subparagraph (F);
            (11) by striking ``(D),'' in subsection (c)(2)(A) and 
        inserting ``(C),'';
            (12) by striking subparagraph (C) in subsection (c)(2) and 
        redesignating subparagraphs (D) and (E) as subparagraphs (C) 
        and (D), respectively;
            (13) by striking ``8.5 percent'' in subsection (d)(2) and 
        inserting ``10 percent'';
            (14) by adding at the end of subsection (d)(2) the 
        following:
            ``(D) Minimum apportionment.--In any fiscal year in which 
        the total amount made available for apportionment under this 
        subsection is less than $300,000,000, the Secretary shall 
        reduce, on a prorated basis, the amount to be apportioned under 
        subparagraph (d)(3)(A) of this section, and make such reduction 
        available to be apportioned under this subsection, so as to 
        meet a minimum apportionment of $300,000,000.'';
            (15) by striking subsection (d)(3) and inserting the 
        following:
    ``(3) Nonprimary airports.--
            ``(A) Except as provided in subsection (2)(D), the 
        Secretary shall each fiscal year apportion--
                    ``(i) to each airport, excluding primary airports 
                but including reliever and nonprimary commercial 
                service airports--
                                    ``(I) $400,000 to each airport that 
                                is either a nonprimary commercial 
                                service airport or a reliever or that 
                                is a nonprimary airport having 100 or 
                                more operational registered based 
                                aircraft;
                                    ``(II) $200,000 to each airport 
                                that is a nonprimary airport (other 
                                than a nonprimary commercial service or 
                                reliever airport), having from 50 to 99 
                                operational registered based aircraft, 
                                or 3 or more operational registered 
                                based jet aircraft; and
                                    ``(III) $100,000 to each airport 
                                that is a nonprimary airport (other 
                                than a nonprimary commercial service 
                                airport or a reliever airport), and has 
                                from 10 to 49 operational, registered 
                                based aircraft.
            ``(B) For purposes of subparagraph (A), the terms 
        `operational registered based aircraft' or `operational 
        registered based jet aircraft' have the meaning given such 
        terms in the Federal Aviation Administration's National Flight 
        Data Center Airport Data Base or in a comparable, updated 
        agency database.'';
            (16) subsection (e)(1)(B) is amended by inserting ``twice'' 
        before ``the minimum'';
            (17) by striking subsection (e)(4);
            (18) by striking ``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'' in subsection (f)(1) 
        and inserting ``in fiscal years 2008 and 2009 to a sponsor of a 
        large hub or medium hub airport'';
            (19) by striking ``$3.00,'' in subsection (f)(1)(B) and 
        inserting ``$3.00, but not more than $4.50,'';
            (20) by adding at the end of subsection (f)(1) the 
        following:
            ``(C) in the case of a passenger facility charge of more 
        than $4.50, 100 percent of the projected revenues from the 
        charge in the fiscal year but not by more than 100 percent of 
        the amount that otherwise would be apportioned under this 
        section.'';
            (21) (D) by striking ``fee'' each place it appears in 
        subsection (f) and inserting ``charge''; and
            (22) by adding at the end thereof the following:
    ``(g) Environmental Set-Aside.--
            ``(1) The Secretary may apportion at least 8 percent of the 
        amount subject to apportionment for each fiscal year for grants 
        for--
                    ``(A) airport noise compatibility planning under 
                section 47505(a)(2);
                    ``(B) carrying out noise compatibility programs 
                under section 47504(c);
                    ``(C) noise mitigation projects approved in an 
                environmental record of decision for an airport 
                development project under this title;
                    ``(D) for compatible land use planning projects 
                carried out by State and local governments under 
                section 47141;
                    ``(E) 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.);
                    ``(F) for water quality mitigation projects to 
                comply with the Clean Water Act (33 U.S.C. 1251 et 
                seq.) approved in an environmental record of decision 
                for an airport development project under this title; 
                and
                    ``(G) for carrying out an environmental mitigation 
                demonstration project under section 47143 of this 
                title.
            ``(2) 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 8 
        percent requirement is being met in that fiscal year.''.

SEC. 307. MINIMUM AMOUNT FOR THE DISCRETIONARY FUND.

    Section 47115(g)(1) is amended by striking from ``sum of--'' 
through ``The amount'' and inserting ``sum of $520,000,000. The 
amount''.

SEC. 308. FUNDING OF SPACE TRANSPORTATION INFRASTRUCTURE GRANTS 
              PROGRAM.

    Section 47115 is amended by adding at the end the following:
    ``(k) Funding of Space Transportation Infrastructure Matching 
Grants.--Notwithstanding any other provision of this chapter, from 
amounts made available under this section, the Secretary may issue a 
grant for a project under section 70301 of this title, provided that, 
in issuing such a grant, the Secretary shall follow the provisions of 
chapter 703 of this title. Not more than $10,000,000 per fiscal year 
shall be available for grants under this subsection.''.

SEC. 309. REPEAL OF SMALL AIRPORT FUND.

    Section 47116 is repealed.

SEC. 310. CREATION OF NEW SMALL AIRPORT SET-ASIDE, AND REPEAL OF THE 
              MILITARY AND RELIEVER AIRPORT SET-ASIDES.

    Section 47117(e) is amended to read as follows:
    ``(e) Small Airport Set-Aside.--Each fiscal year, the Secretary 
shall provide at least 20 percent of the amount available to the 
discretionary fund under section 47115 of this title to sponsors of 
small hub airports, nonhub airports, nonprimary commercial service 
airports, reliever airports or general aviation airports, for any 
purpose for which amounts are made available under section 48103. An 
airport in a State participating in the State block grant program under 
section 47128 may receive a grant under this section to the same extent 
the airport may receive a grant if the State were not participating in 
such program.''.

SEC. 311. MILITARY AIRPORT PROGRAM.

    Section 47118 is amended--
            (1) by striking ``section 47117(e)(1)(B)'' in subsection 
        (a) and inserting ``section 47114(c)(1), (c)(2) and (d), 47115, 
        or 47117(e)'';
            (2) by striking subsection (c) and redesignating 
        subsections (d) through (g) as subsections (c) through (f), 
        respectively;
            (3) by striking ``section 47117(d)(1)(B) of this title'' in 
        subsection (c), as redesignated, and inserting ``section 47114, 
        47115, or 47117 of this title for projects at airports 
        designated under this section'';
            (4) by striking ``section 47115, $10,000,000 for each of 
        fiscal years 2004 and 2005, and $7,000,000 for each fiscal year 
        thereafter,'' in subsection (d), as redesignated, and inserting 
        ``sections 47114, 47115, and 47117, $7,000,000 for each fiscal 
        year,'';
            (5) by striking ``(1) Construction.--From'' in subsection 
        (e), as redesignated'' and inserting ``From'';
            (6) by striking ``section 47115, $10,000,000 for each of 
        fiscal years 2004 and 2005, and $7,000,000 for each fiscal year 
        thereafter,'' in subsection (e), as redesignated, and inserting 
        ``sections 47114, 47115 and 47117, $7,000,000 for each fiscal 
        year,'';
            (7) by striking paragraph (2) of subsection (e), as 
        redesignated; and
            (8) by striking ``one'' in subparagraph (f), as 
        redesignated, and inserting ``up to 3''.

SEC. 312. SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR.

    Section 47133(b) is amended--
            (1) by resetting the text of the subsection as an indented 
        paragraph 2 ems from the left margin;
            (2) by inserting ``(1)'' before ``Subsection''; and
            (3) by adding at the end thereof the following:
            ``(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.''.

SEC. 313. SUNSET OF AIRPORT SECURITY PROGRAM.

    Section 47137 is repealed effective September 30, 2008.

SEC. 314. SUNSET OF PILOT PROGRAM FOR PURCHASE OF AIRPORT DEVELOPMENT 
              RIGHTS.

    Section 47138 is repealed effective September 30, 2007.

SEC. 315. EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND USE PLANNING 
              AND PROJECTS BY STATE AND LOCAL GOVERNMENTS.

    Section 47141(f) is amended by striking ``September 30, 2007.'' and 
inserting ``September 30, 2010.''.

SEC. 316. MIDWAY ISLAND AIRPORT.

    Section 186(d) of the Vision 100-Century of Aviation 
Reauthorization Act (17 Stat. 2518) is amended by striking ``October 1, 
2007,'' and inserting ``October 1, 2010,''.

SEC. 317. PILOT PROGRAM FOR AIRPORT TAKEOVER OF AIR NAVIGATION 
              FACILITIES.

    (a) In General.--Chapter 445 is amended by adding at the end the 
following new section:
``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 medium or 
large hub 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) Special Passenger Facility Charge Authority.--Notwithstanding 
the maximum amount for a passenger facility charge provided under 
section 40117(b)(1), a participating sponsor in the pilot program under 
this section is authorized to impose a passenger facility charge of $7 
provided that the sponsor meets the otherwise applicable requirements 
of section 40117.
    ``(f) Definitions.--In this section:
            ``(1) Large hub airport; medium hub airport; sponsor.--The 
        terms `large hub airport', `medium hub airport', and `sponsor' 
        have the meaning given those terms in section 40102.
            ``(2) Terminal area.--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.
    ``(g) 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.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 445 is 
amended by inserting after the item relating to section 44517 the 
following:

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

SEC. 318. ADS-B SUPPORT PILOT PROGRAM.

    (a) In General.--Chapter 445, as amended by section 317, is amended 
by adding at the end the following:
``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 Dependant 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, a metropolitan planning organization in the area where 
        the project is located, or any consortium of 2 or more State or 
        local governments meeting the definition of a sponsor under 
        section 47102 of this title.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 445 is 
amended by inserting after the item relating to section 44518 the 
following:

``44519. ADS-B support pilot program.''.

SEC. 319. AIP ELIGIBILITY FOR METROPOLITAN WASHINGTON AIRPORTS 
              AUTHORITY.

    Section 49108 is amended by striking ``October 1, 2008,'' and 
inserting ``October 1, 2010,''.

SEC. 320. MISCELLANEOUS AMENDMENTS.

    (a) Technical Changes to National Plan of Integrated Airport 
Systems.--Section 47103 is amended--
            (1) by striking ``each airport to--'' in subsection (a) and 
        inserting ``the airport system to--'';
            (2) by striking ``system in the particular area;'' in 
        subsection (a)(1) and inserting ``system, including connection 
        to the surface transportation network; and'';
            (3) by striking ``aeronautics; and'' in subsection (a)(2) 
        and inserting ``aeronautics.'';
            (4) by striking subsection (a)(3);
            (5) by striking paragraph (2) of subsection (b) and 
        redesignating paragraph (3) as paragraph (2);
            (6) by striking ``operations, Short Takeoff and Landing/
        Very Short Takeoff and Landing aircraft operations,'' in 
        subsection (b)(2), as redesignated and inserting 
        ``operations''; and
            (7) by striking ``status of the'' in subsection (d).
    (b) Conforming Change to Project Grant Agreements.--Section 
47108(e)(3) is amended by striking ``and the small airport fund''.
    (c) Update Veterans Preference Definition.--Section 47112(c) is 
amended--
            (1) by striking ``separated from'' in paragraph (1)(B) and 
        inserting ``discharged or released from active duty in'';
            (2) by adding at the end of paragraph (1) the following:
            ``(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.''; and
            (3) by striking ``veterans and'' in paragraph (2) and 
        inserting ``veterans, Afghanistan-Iraq war veterans, and''.
    (d) Consolidation of Terminal Development Provisions.--Section 
47119 is amended--
            (1) by redesignating subsections (a), (b), (c), and (d) as 
        subsections (b), (c), (d), and (e) respectively, and by 
        inserting the following before subsection (b), as redesignated:
    ``(a) In General.--
            ``(1) The Secretary may approve a project for terminal 
        development (including multimodal terminal development) in a 
        nonrevenue-producing public-use area of a commercial service 
        airport--
                    ``(A) if the sponsor certifies that the airport, on 
                the date the grant application is submitted to the 
                Secretary, has--
                            ``(i) all the safety equipment required for 
                        certification of the airport under section 
                        44706 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 andbaggage 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) except as provided in section 47108(e)(3), 
                the airport does not have more than .05 percent of the 
                total annual passenger boardings in the United States; 
                and
                    ``(B) the sponsor certifies that any needed airport 
                development project affecting safety, security, or 
                capacity will not be deferred because of the 
                Secretary's approval.'';
            (2) by striking ``section 47110(d)'' in paragraph (4)(A) of 
        subsection (b), as redesignated, and inserting ``subsection 
        (a)'';
            (3) by striking ``subsection (b)(1) and (2)'' in paragraph 
        (5) of subsection (b), as redesignated, and inserting 
        ``subsections (c)(1) and (2)''; and
            (4) by adding at the end thereof the following:
    ``(f) Limitation on Discretionary Funds.--The Secretary may 
distribute not more than $20,000,000 from the discretionary fund 
established under section 47115 of this title for terminal development 
projects at a nonhub airport or a small hub primary airport that is 
eligible to receive discretionary funds under section 47108(e)(3) of 
this title.''.
    (e) Annual Report.--Section 47131(a) is amended--
            (1) by striking ``April 1'' and inserting ``June 1''; and
            (2) by revising paragraphs (1), (2), (3), and (4) to read 
        as follows:
            ``(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''.
    (f) Correction to Emission Credits Provision.--Section 47139 is 
amended--
            (1) by striking ``47102(3)(F),'' in subsection (a);
            (2) by striking ``47102(3)(F),'' in subsection (b);
            (3) by striking ``47102(3)(L), or 47140'' in subsection (b) 
        and inserting ``or 47102(3)(L),'';
            (4) by striking ``47103(3)(F), in subsection (b); and
            (5) by striking ``47102(3)(L), or 47140,'' in subsection 
        (b) and inserting ``or 47102(3)(L),''.
    (g) Repeal of Airport Ground Support Equipment Emissions Retrofit 
Pilot Program.--Section 47140 is repealed.
    (h) Correction to Surplus Property Authority.--Section 47151(e) is 
amended by striking ``(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)''.
    (i) Airport Capacity Benchmark Reports; Definition of Joint Use 
Airport.--Section 47175 is amended--
            (1) by striking ``Airport Capacity Benchmark Report 2001.'' 
        in paragraph (2) and inserting ``2001 and 2004 Airport Capacity 
        Benchmark Reports or of the most recent Benchmark report.''; 
        and
            (2) by adding at the end thereof the following:
            ``(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.''.
    (j) Conforming Amendment to Civil Penalty Assessment Authority.--
Section 46301(d)(2) is amended by striking ``46318,'' and inserting 
``46318, 46319''.
    (k) Funding for Administrative Expenses for Airport Programs.--
            (1) Section 48105 is amended to read as follows:
``Sec. 48105. Airport programs administrative expenses
    ``Of the amount newly made available, the following shall be 
available for administrative expenses relating to the Airport 
Improvement Program, passenger facility fee 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; and
            ``(3) for fiscal year 2010, $89,000,000.''.
            (2) Conforming Amendments.--The chapter analysis for 
        chapter 481 is amended by striking the item relating to section 
        48105 and inserting the following:

``48105. Airport programs administrative expenses.''.

             TITLE IV--MANAGEMENT AND ORGANIZATION REFORMS

SEC. 401. AIR TRANSPORTATION SYSTEM ADVISORY BOARD.

    Section 106(p) is amended to read as follows:
    ``(p) Air Transportation System Advisory Board.--
            ``(1) Establishment.--The Secretary shall establish an 
        advisory Board which shall be known as the Air Transportation 
        System Advisory Board.
            ``(2) M.--The Board shall be comprised of 13 members, who 
        shall consist of--
                    ``(A) the Administrator of the Federal Aviation 
                Administration and a representative from the Department 
                of Defense;
                    ``(B) 3 members who shall have a fiduciary 
                responsibility to represent the public interest; and
                    ``(C) 8 members representing aviation interests, as 
                follows:
                            ``(i) 1 representative of the airport 
                        community;
                            ``(ii) 1 representative each of major air 
                        carriers (Carrier Group I), national air 
                        carriers (Carrier Group II), and the regional 
                        air carriers (Carrier Group III), as previously 
                        defined by the Secretary of Transportation 
                        under section 4, part 241 of title 49 of the 
                        Code of Federal Regulations;
                            ``(iii) 1 representative of the cargo 
                        airlines;
                            ``(iv) 1 representative of the general 
                        aviation community;
                            ``(v) 1 representative of the business 
                        aviation community; and
                            ``(vi) 1 representative of the aviation 
                        manufacturing community.
            ``(3) Appointment and qualifications.--
                    ``(A) Members of the Board appointed under 
                paragraphs (2)(B) and (2)(C) shall be appointed by the 
                Secretary and shall not be considered to be employees 
                of the Federal government.
                    ``(B) Members of the Board appointed under 
                paragraph (2)(B) shall be citizens of the United 
                States, and it is recommended that they 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 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.
            ``(4) Functions.--
                    ``(A) In general.--The Board shall--
                            ``(i) review and provide advice on the 
                        Administration's safety 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) review and make recommendations on 
                        the Administration's plan for modernizing that 
                        system and capital expenditures for a project 
                        of $100,000,000 or more related to the system;
                            ``(v) make recommendations of the type and 
                        level of fees to be established by the 
                        Administration under sections 45305 and 45306 
                        and for any adjustments to those fees in 
                        accordance with the procedures established 
                        under those sections; and
                            ``(vi) provide advice on the 
                        Administrator's selection of a Chief Operating 
                        Officer for the Air Traffic Organization and on 
                        the appointment and compensation of its 
                        managers.
                    ``(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 3 years. Of the members first 
                appointed by the Secretary--
                            ``(i) 3 shall be appointed for terms of 1 
                        year;
                            ``(ii) 4 shall be appointed for terms of 2 
                        years; and
                            ``(iii) 4 shall be appointed for terms of 3 
                        years.
                    ``(B) Reappointment.--No individual may be 
                appointed to the Board for more than 6 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 the 
                remainder of that term.
                    ``(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 
                Secretary.
                    ``(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; or
                            ``(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) Compensation.--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, 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) Detail of personnel from the 
                administration.--The Administrator shall make available 
                to the Board such staff, 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) Role of the administrator and the secretary.--All 
        actions and functions of the Board are subject to the approval 
        or disapproval of the Administrator and the Secretary.
            ``(8) Air traffic control system defined.--In this section, 
        the term `air traffic control system' has the meaning given 
        that term in section 40102(a).''.

SEC. 402. FACILITATION OF NEXT GENERATION AIR TRAFFIC SERVICES.

    Section 106(l) is amended by adding at the end the following:
            ``(7) Services by private sector.--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.''.

SEC. 403. CLARIFICATION OF AUTHORITY TO ENTER INTO REIMBURSABLE 
              AGREEEMENTS.

    The last sentence of section 106(m) is amended by striking 
``without'' and inserting ``with or without''.

SEC. 404. DEFINITION OF AIR NAVIGATION FACILITY.

    Section 40102(a)(4) is amended--
            (1) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) runway lighting and airport surface visual 
                and other navigation aids;'';
            (2) by striking ``weather information, signaling, radio-
        directional finding, or radio or other electromagnetic 
        communication; and'' in subparagraph (C) and inserting 
        ``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;'';
            (3) by striking ``another structure'' in subparagraph (D) 
        and inserting ``any structure or equipment'';
            (4) by striking ``aircraft.'' in subparagraph (D) and 
        inserting ``aircraft; and''; and
            (5) by adding at the end the following:
                    ``(E) buildings, equipment and systems dedicated to 
                the National Airspace System.''.

SEC. 405. IMPROVED MANAGEMENT OF PROPERTY INVENTORY.

    Section 40110(a)(2) is amended by striking ``compensation; and'' 
and inserting ``compensation, and the amount received may be credited 
to the appropriation current when the amount is received; and''.

SEC. 406. CLARIFICATION TO ACQUISITION REFORM AUTHORITY.

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

SEC. 407. ASSISTANCE TO FOREIGN AVIATION AUTHORITIES.

    Section 40113(e) is amended--
            (1) by inserting ``(whether public or private)'' in 
        paragraph (1) after ``authorities'';
            (2) by striking ``safety.'' in paragraph (1) and inserting 
        ``safety or efficiency. The Administrator is authorized to 
        participate in, and submit offers in response to, competitions 
        to provide these services, and to contract with foreign 
        aviation authorities to provide these services consistent with 
        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.''; 
        and
            (3) by striking ``appropriation from which expenses were 
        incurred in providing such services.'' in paragraph (3) and 
        inserting ``appropriation current when the expenditures are or 
        were paid, or the appropriation current when the amount is 
        received.''.

SEC. 408. PRESIDENTIAL RANK AWARD PROGRAM.

    Section 40122(g)(2) is amended--
            (1) by striking ``and'' after the semicolon in subparagraph 
        (G);
            (2) by striking ``Board.'' in subparagraph (H) and 
        inserting ``Board;''; and
            (3) by inserting at the end the following new subparagraph:
                    ``(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.''.

SEC. 409. REALIGNMENT AND CONSOLIDATION OF AVIATION FACILITIES AND 
              SERVICES.

    (a) In General.--Chapter 445, as amended by section 318 of this 
Act, is amended by adding at the end the following new section:
``Sec. 44520. Realignment and consolidation of aviation facilities and 
              services
    ``(a) Purpose.--The purpose of this section is to provide a fair 
process that will result in the realignment or consolidation of 
services and facilities of the Federal Aviation Administration to help 
reduce capital, operating, maintenance, and administrative costs with 
no adverse effect on safety.
    ``(b) Establishment of Commission.--
            ``(1) The Secretary may establish an independent commission 
        to be known as the `Realignment and Consolidation of Aviation 
        Facilities and Services Commission'.
            ``(2) The Commission shall carry out the duties specified 
        for it in this part.
            ``(3) The Commission shall be composed of 5 members 
        appointed by the Secretary. Such members shall not be 
        considered employees of the federal government.
            ``(4) Members of the Commission shall be appointed for a 
        term of 3 years.
            ``(5) The Commission shall elect a chair from among its 
        members.
            ``(6) A vacancy in the Commission shall be filled in the 
        same manner as the original appointment but the individual 
        appointed to fill the vacancy shall serve only for the 
        unexpired portion of the term for which the individual's 
        predecessor was appointed.
            ``(7) No member shall receive any compensation or other 
        benefits from the Federal government for serving on the 
        Commission, except for compensation benefits for injuries under 
        subchapter I of chapter 81 of title 5, except that each member 
        of the Commission 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.
            ``(8) The Administrator of the Federal Aviation 
        Administration shall make available to the Commission such 
        staff, information, and administrative services and assistance 
        as may reasonably be required to enable the Commission to carry 
        out its responsibilities under this subsection. The Commission 
        may employ experts or consultants on a temporary or 
        intermittent basis with the approval of the Secretary.
            ``(9) The Federal Advisory Committee Act (5 U.S.C. App.) 
        shall not apply to the Commission.
    ``(c) FAA Recommendations for Facilities Realignment and 
Consolidation.--Within 6 months after the establishment of the 
Commission by the Secretary, the Administrator, after providing an 
opportunity for public comment, shall publish the final criteria to be 
used in making the Administrator's recommendations for the realignment 
and consolidation of services and facilities under this section. On the 
basis of such final criteria, the Administrator shall publish in the 
Federal Register and transmit to the Commission a list of the services 
and facilities that the Administrator recommends for realignment and 
consolidation including a justification for each recommendation.
    ``(d) Review and Recommendations by the Commission.--
            ``(1) After receiving the recommendations from the 
        Administrator pursuant to subsection (c), the Commission shall 
        opportunity for public comment on such recommendations.
            ``(2) Based on its review and analysis of the 
        Administrator's recommendations and any public comment it may 
        receive, the Commission shall make its independent 
        recommendations to the President for realignment and 
        consolidation of aviation services or facilities.
            ``(3) The Commission shall explain and justify in its 
        report submitted to the President any recommendation made by 
        the Commission that is different from the recommendations made 
        by the Administrator pursuant to subsection (c). The Commission 
        shall transmit a copy of such report to the congressional 
        committees of interest on the same date on which it transmits 
        its recommendations to the President under paragraph (2).
    ``(e) Review by the President.--
            ``(1) The President shall transmit to the Commission and to 
        the Congress a report containing the President's approval or 
        disapproval of the Commission's recommendations.
            ``(2) If the President approves all the recommendations of 
        the Commission, the President shall transmit a copy of such 
        recommendations to the Congress, together with a certification 
        of such approval.
            ``(3) If the President disapproves the recommendations of 
        the Commission, in whole or in part, the President shall 
        transmit to the Commission and the Congress the reasons for 
        that disapproval. The Commission shall consider the President's 
        report and may then transmit to the President a revised list of 
        recommendations for the realignment and consolidation of 
        services and facilities.
            ``(4) If the President approves all of the revised 
        recommendations of the Commission transmitted to the President 
        under paragraph (3), the President shall transmit a copy of 
        such revised recommendations to the Congress, together with a 
        certification of such approval.
            ``(5) If the President does not transmit to the Congress an 
        approval and certification, the process by which agency 
        services and facilities may be selected for realignment or 
        consolidation under this section shall be terminated.
    ``(f) Realignment and Consolidation of Services Facilities.--
Subject to subsection (g), the Administrator shall--
            ``(1) realign or consolidate all Federal Aviation 
        Administration services and facilities recommended for 
        realignment or consolidation by the Commission in the report 
        transmitted to the Congress by the President pursuant to 
        subsection (e)(2) or (4);
            ``(2) initiate all such realignments and consolidations no 
        later than 2 years after the date on which the President 
        transmits a report to the Congress containing the 
        recommendations for such realignments or consolidations; and
            ``(3) complete all such realignments and consolidations no 
        later than the end of the 6-year period beginning on the date 
        on which the President transmits the report containing the 
        recommendations for such realignments or consolidations.
    ``(g) Congressional Disapproval.--
            ``(1) The Administrator may not carry out any closure or 
        realignment recommended by the Commission in a report 
        transmitted from the President pursuant to subsection (e)(2) or 
        (4) if a joint resolution is enacted, disapproving such 
        recommendations of the Commission before the earlier of--
                    ``(A) the end of the 60-day period beginning on the 
                date on which the President transmits such report; or
                    ``(B) the adjournment of Congress sine die for the 
                session during which such report is transmitted.
            ``(2) For purposes of paragraph (1)(A), the days on which 
        either House of Congress is not in session because of an 
        adjournment of more than 3 days to a day certain shall be 
        excluded in the computation of the 60 day period.
    ``(g) Authorization.--
            ``(1) There are authorized to be appropriated to the 
        Administrator such sums as may be necessary for the Commission 
        to carry out its duties and for the Administrator to implement 
        the realignment and consolidation of services and facilities as 
        described in subsection (f).
            ``(2) Amounts appropriated pursuant to paragraph (1) shall 
        remain available until expended.
    ``(h) Effect on Other Authorities.--Nothing in this section shall 
affect the authorities provided in section 44503 or the existing 
authorities or responsibilities of the Administrator under this title 
to manage the operations of the Federal Aviation Administration, 
including realigning or consolidating facilities or services.
    ``(i) Definitions.--In this section:
            ``(1) Congressional committees of interest.--The term 
        `congressional committees of interest' means the Senate 
        Committee on Commerce, Science, and Transportation, the House 
        of Representatives Committee on Transportation and 
        Infrastructure, and the Senate and House of Representatives 
        Committees on Appropriations.
            ``(2) Commission.--The term `Commission' means the 
        Commission established under subsection (b) of this section.
            ``(3) Realignment.--The term `realignment' includes any 
        action which relocates functions and personnel positions but 
        does not include a reduction in personnel resulting from 
        workload adjustments.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 455, as 
amended by section 318 of this Act, is amended by inserting after the 
item relating to section 44519 the following:

``44520. Realignment and consolidation of aviation facilities and 
                            services.''.

SEC. 410. OPERATIONAL AND APPROACH PROCEDURES BY THIRD PARTIES THROUGH 
              DELEGATION.

    Section 44701 is amended by adding at the end the following:
    ``(g) Delegation.--Subject to any regulations, supervision, and 
review that the Administrator may prescribe, the Administrator may 
delegate to a qualified private person, or to an employee under the 
supervision of that person, the development, testing and maintenance of 
flight procedures.''.

SEC. 411. JUDICIAL REVIEW OF DENIAL OF AIRMAN CERTIFICATES.

    (a) Judicial Review of NTSB Decisions.--Section 44703(d) is amended 
by adding at the end the following:
    ``(3) 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.''.
    (b) Conforming Amendment.--Section 1153(c) is amended by striking 
``section 44709 or'' and inserting ``section 44703(d), 44709, or''.

SEC. 412. RELEASE OF DATA RELATING TO ABANDONED TYPE CERTIFICATES AND 
              SUPPLEMENTAL TYPE CERTIFICATES.

    Section 44704(a) is amended by adding at the end the following:
    ``(5) Release of data.--
            ``(A) 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, along with any 
        associated supplier approved data for that product 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, 
        including the original design data, any approved data for any 
        supplemental type certificates, and any approved data for 
        individual parts or components for the particular aeronautical 
        product.''.

SEC. 413. DESIGN ORGANIZATION CERTIFICATES.

    Section 44704(e) is amended--
            (1) by striking ``Beginning 7 years after the date of 
        enactment of this subsection,'' in paragraph (1) and inserting 
        ``Effective January 1, 2013,'';
            (2) by striking ``44701(a) for the type certification of 
        aircraft, aircraft engines, propellers, or appliances.'' in 
        paragraph (1) and inserting ``44701.'';
            (3) by striking ``testing'' in paragraph (2) and inserting 
        ``production''; and
            (4) by striking paragraph (3) and inserting the following:
    ``(3) Issuance of certificate based on design organization 
certification.--The Administrator may rely on the Design Organization 
for certification of compliance under this section.''.

SEC. 414. CONTRACT TOWER PROGRAM.

    Section 47124(b) is amended--
            (1) by striking ``(Visual Flight Rules) level I'' in 
        paragraph (1) and inserting ``nonapproach control''; and
            (2) by striking ``an airport traffic control tower 
        classified as a level I (Visual Flight Rules)'' in paragraph 
        (2) and inserting ``a low activity nonapproach control air 
        traffic control''.

SEC. 415. ENHANCED OVERSIGHT OF NEXT GENERATION AIR TRANSPORTATION 
              SYSTEM JOINT PLANNING AND DEVELOPMENT OFFICE.

    Section 709 of Vision 100-Century of Aviation Reauthorization Act 
(49 U.S.C. 40101 note) is amended--
            (1) by adding at the end of subsection (a)(1) ``The 
        Director of the Office shall be supervised for various purposes 
        by such officer or officers of the Department as the Secretary 
        may specify.'';
            (2) by adding at the end of subsection (a) the following:
    ``(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.'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively, and inserting after subsection (c) 
        the following:
    ``(d) Consolidated Operational Evolution Partnership.--The 
Administrator of the Federal Aviation Administration shall develop and 
publish annually a consolidated operational evolution partnership that 
provides a detailed description of how the agency is implementing the 
Next Generation Air Transportation System.''; and
            (4) by striking ``plan.'' in paragraph (2) of subsection 
        (e), as redesignated, and inserting ``plan, and how the 
        respective budgets, and assignment of expert personnel, of the 
        Federal Aviation Administration, the National Aeronautics and 
        Space Administration, the Departments of Defense, the 
        Department of Homeland Security, the Department of Commerce and 
        any other Federal agency that has an important interest in, or 
        responsibility for, the Next Generation Air Transportation 
        System support specific operational improvements for such 
        System.''.

    TITLE V--AVIATION SAFETY, SECURITY, CAPACITY, AND CONNECTIVITY 
                              IMPROVEMENTS

SEC. 501. DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST OF 
              NATIONAL SECURITY.

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

SEC. 502. FAA ACCESS TO CRIMINAL HISTORY RECORDS OR DATABASE SYSTEMS.

    (a) In General.--Chapter 401 is amended by adding at the end 
thereof the following:
``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, wanted or 
missing persons, including the National Crime Information Center and 
its incorporated criminal history databases and the National Law 
Enforcement Telecommunications System.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 401 is 
amended by inserting after the item relating to section 40129 the 
following:

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

SEC. 503. ALLOCATION OF OPERATING AUTHORIZATIONS AT LAGUARDIA AIRPORT.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end thereof the following:
``Sec. 41724. Allocation of operating authorizations at LaGuardia 
              Airport
    (a) General Authority.--
            ``(1) Notwithstanding any other provision of law, the 
        Secretary of Transportation and the Administrator of the 
        Federal Aviation Administration may determine that the use of a 
        market based mechanism, such as an auction or congestion 
        pricing, is appropriate to promote the efficient movement of 
        air traffic at LaGuardia Airport. To accomplish this objective, 
        the Administrator shall determine the operational capacity of 
        LaGuardia airport, in accordance with section 40103 of this 
        title.
            ``(2) If the Secretary makes a the determination under 
        subsection (a) that use of a market-based mechanism is 
        appropriate, the Secretary and the Administrator shall permit 
        the Port Authority of New York and New Jersey (Port Authority) 
        to implement a market-based measure for the allocation of 
        operating authorizations at the airport in accordance with 
        subsection (b). If the Port Authority fails to implement such a 
        mechanism within 1 year of the Secretary's determination, the 
        Secretary may implement a market-based mechanism at LaGuardia 
        Airport in accordance with section 41725 of this title.
    ``(b) Rulemaking.--
            ``(1) The Secretary shall issue a rule to establish the 
        terms and conditions under which interested persons may obtain 
        operating authorizations through a market-based mechanism 
        authorized by subsection (a). The rule shall also, at a 
        minimum, establish the procedures, timing, terms and conditions 
        for the implementation of this mechanism. The rule shall 
        include provisions to protect the public interest as set forth 
        in section 40101 of this title including--
                    ``(A) placing maximum reliance on competitive 
                market forces;
                    ``(B) avoiding unreasonable industry concentration;
                    ``(C) encouraging entry into air transportation 
                markets by new and existing air carriers;
                    ``(D) ensuring that passengers in small communities 
                and rural and remote areas have access to affordable, 
                scheduled air service; and
                    ``(E) providing air carriers and the traveling 
                public a stable and predictable schedule for planning 
                future travel.
            ``(2) In developing the terms and conditions for an 
        allocation mechanism, the Secretary may distinguish among 
        classes of aircraft operators and among types of air service.
    ``(c) Escrow Account.--If the Port Authority implements a market-
based mechanism under this section and such mechanism produces annual 
revenue in excess of the annual administrative costs associated with 
the establishment and administration of the mechanism, the Port 
Authority shall deposit the excess revenue in an escrow account. 
Expenditures may be made from the escrow account on eligible airport-
related projects, in accordance with section 40117 of this title, or on 
any other project that the Secretary finds is in the public interest.
    ``(d) Rules of Construction.--Nothing in this section or in the use 
of a market-based mechanism authorized by this section shall--
            ``(1) diminish the authority of the Administrator under 
        other provisions of this title to regulate the safe and 
        efficient use of the national airspace, including the 
        withdrawal of operating authorizations obtained under this 
        section when required in the public interest; or
            ``(2) be considered for purpose of any Federal law a major 
        Federal action significantly affecting the human environment.
    ``(e) Treatment as Additional Revenue.--Expenditures or other 
financial assistance provided under subsection (c) shall be in addition 
to funds that would otherwise be provided under the Airport Improvement 
Program or any other Federal assistance program.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417 is 
amended by inserting after the item relating to section 41723 the 
following:

``41724. Allocation of operating authorizations at LaGuardia 
                            Airport.''.

SEC. 504. PILOT PROGRAM FOR MARKET-BASED MECHANISMS AT CONGESTED 
              AIRPORTS.

    (a) Pilot Program.--Subchapter I of chapter 417, as amended by 
section 503, is amended by adding at the end the following:
``Sec. 41725. Pilot program to evaluate market-based mechanisms at 
              congested airports
    ``(a) In General.--In order to promote the efficient use of airport 
capacity or the efficient movement of air traffic, the Secretary of 
Transportation shall establish a pilot program for market-based pricing 
mechanisms for domestic flights at not more than 15 airports under 
which an airport owner or operator may adopt, or the Administrator of 
the Federal Aviation Administration may impose, a market-based 
mechanism for the airport in accordance with the procedures established 
by this section.
    ``(b) Regional Delay.--
            ``(1) The Secretary may approve the application of an 
        airport owner or operator to participate in the program if the 
        Secretary finds that--
                    ``(A) the airport experiences demand exceeding 
                existing capacity in the aggregate or during specific 
                times or dates;
                    ``(B) delays at the airport have a significant 
                adverse effect on the regional airspace; and
                    ``(C) the market-based mechanism proposed by the 
                airport owner or operator will not result in a 
                disincentive for the airport operator to add capacity 
                where possible.
            ``(2) Once the airport's participation in the program is 
        approved, the airport owner or operator may implement a market-
        based mechanism, and, in the case of a congestion fee or 
        auction, establish the method of collecting such revenue. Such 
        fees shall be reasonable and not unjustly discriminatory.
            ``(3) An airport owner or operator may establish or adjust 
        a market-based mechanism under this program only after 
        consultation with the Administrator, air carriers serving the 
        airport, and operators of aircraft based at the airport.
            ``(4) If an auction or congestion fee implemented under 
        this section produces annual revenue in excess of the annual 
        administrative costs associated with the establishment and 
        administration of the fee, the airport owner or operator shall 
        deposit the excess revenue in an escrow account. Expenditures 
        may be made from the escrow account on eligible airport-related 
        projects, in accordance with section 40117 of this title, or on 
        any other project that the Secretary finds is in the public 
        interest.
    ``(c) Delays Affecting the National System.--
            ``(1) If the Secretary finds that the capacity constraints 
        at an airport cause significant delays beyond the region in 
        which the airport is located and have negative effects on the 
        National Airspace System, and the owner or operator of such 
        airport has not already adopted a market-based mechanism under 
        subsection (b), then the Secretary may implement, through 
        rulemaking, a market-based mechanism at the airport under the 
        program to address these effects on the system. If market-based 
        mechanisms are implemented, the Administrator of the Federal 
        Aviation Administration shall establish the method of 
        collecting such fees. Such fees shall be reasonable and not 
        unjustly discriminatory.
            ``(2) The Administrator may establish or adjust a market-
        based mechanism under this program only after consultation with 
        the airport owner or operator, air carriers serving the 
        airport, and operators of aircraft based at the airport.
            ``(3) If market-based mechanisms implemented by the 
        Administrator under this section produce annual revenue in 
        excess of the annual administrative costs associated with the 
        establishment and administration of the fee, the Administrator 
        shall deposit the surplus funds in an account established in 
        the Treasury, and designated as the Airspace Congestion 
        Mitigation Account. Such surplus revenue shall be available to 
        the Secretary, as specified in appropriations Acts, until 
        expended, for--
                    ``(A) airport capacity expansion or airport 
                congestion and delay reduction at the airport at which 
                a market based mechanism is implemented;
                    ``(B) airport capacity expansion or airport 
                congestion and delay reduction at other congested 
                airports, with priority given to capacity projects in 
                the same region as the airport at which a market based 
                mechanism is implemented;
                    ``(C) improvement of ground access to the airports 
                in the vicinity, as defined by the Secretary, if the 
                Secretary finds that it would help relieve congestion 
                at the airport where a market-based mechanism is 
                implemented;
                    ``(D) construction, reconstruction or 
                reconfiguration of gates and related areas at the 
                airport where a market-based mechanism is implemented;
                    ``(E) facilities, equipment, or other air traffic 
                control improvement projects that would enhance airport 
                or airspace capacity in the National Airspace System, 
                with priority given to projects in the region of an 
                airport where a market-based mechanism is implemented; 
                and
                    ``(F) assistance to air carriers in the purchase of 
                equipment for their aircraft to enable them to utilize 
                air traffic control facilities and equipment, including 
                the facilities and equipment purchased under 
                subparagraph (E), in order to enhance airport and 
                airspace capacity.
    ``(d) Conformance with Requirements.--A market-based mechanism 
implemented under this pilot program shall be deemed to meet the 
requirements of section 40116 and chapter 471 of this title.
    ``(e) Market-Based Mechanism Defined.--In this section, the term 
`market-based mechanism' includes the use of auctions, or congestion or 
peak period pricing, under which fees may vary by time of day or day of 
the week in order to reduce aviation congestion and delays.
    ``(f) Exclusion.--An airport subject to the requirements of section 
41724 is not eligible to participate in this pilot program.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417, as 
amended by section 503, is amended by inserting after the item relating 
to section 41724 the following:

``41725. Pilot Program for market-based mechanisms at congested 
                            airports.''.

          TITLE VI--ENVIRONMENTAL STEWARDSHIP AND STREAMLINING

SEC. 601. AIRPORT COOPERATIVE RESEARCH PROGRAM.

    Section 44511(f)is amended--
            (1) by striking ``establish a 4-year pilot'' in paragraph 
        (1) and inserting ``maintain an''; and
            (2) by inserting ``pilot'' in paragraph (4) before 
        ``program'' the first time it appears; and
            (3) by striking ``program, including recommendations as to 
        the need for establishing a permanent airport cooperative 
        research program.'' in paragraph (4) and inserting 
        ``program.''.

SEC. 602. STATE BLOCK GRANT PROGRAM.

    Section 47128 is amended--
            (1) by striking ``regulations'' each place it appears in 
        subsection (a) and inserting ``guidance'';
            (2) by striking ``grant;'' in subsection (b)(4) and 
        inserting ``grant, including Federal environmental requirements 
        or an agreed upon equivalent;''; and
            (3) by redesignating subsection (c) as subsection (d) and 
        inserting after subsection (b) the following:
    ``(c) Environmental 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.''.

SEC. 603. AIRPORT FUNDING OF SPECIAL STUDIES OR REVIEWS.

    Section 47173(a) is amended by striking ``project.'' and inserting 
``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.''.

SEC. 604. ENVIRONMENTAL MITIGATION DEMONSTRATION PILOT PROGRAM.

    (a) Pilot Program.--Chapter 471 is amended by adding at the end 
thereof the following:
``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.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 471 is 
amended by inserting after the item relating to section 47142 the 
following:

``47143. Environmental mitigation demonstration pilot program.''.

SEC. 605. GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT PROCEDURES.

    Section 47504 is amended by adding at the end the following:
    ``(e) Grants for Assessment of Flight Procedures.--
            ```(1) 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.''.

SEC. 606. RESEARCH CONSORTIUM FOR LOWER ENERGY, EMISSIONS, AND NOISE 
              TECHNOLOGY PARTNERSHIP.

    (a) Establishment of Consortium.--Subchapter I of chapter 475 is 
amended by adding at the end the following:
``Sec. 47512. Research consortium for lower energy, emissions and noise 
              technology partnership
    ``(a) `Cleen' Engine Technology Partnership.--The Administrator of 
the Federal Aviation Administration shall enter into a cooperative 
agreement with the Partnership for AiR Transportation Noise and 
Emissions Reduction (PARTNER) Center of Excellence for the development, 
maturing, and certification for Continuous Lower Energy, Emissions and 
Noise (CLEEN) engine and airframe technology for aircraft over the next 
10 years.
    ``(b) Performance Objective.--The Administrator shall establish the 
following performance objectives for the program to be completed by 
2015:
            ``(1) Certifiable aircraft technology that increases 
        aircraft fuel efficiency by 25 percent relative to 1997 
        subsonic aircraft technology.
            ``(2) Certifiable engine technology that reduces landing 
        and takeoff cycle nitrogen oxide emissions by 50 percent, 
        without increasing other gaseous or particle emissions, over 
        the International Civil Aviation Organization standard adopted 
        in 2004.
            ``(3) D23/Certifiable aircraft technology that reduces 
        noise levels by 10 dB relative to 1997 subsonic jet aircraft 
        technology.
            ``(4) Determination of the feasibility of use of 
        alternative fuels in aircraft systems, including successful 
        demonstration and quantification of benefits.
            ``(5) Determination of the extent to which new engine and 
        aircraft technologies may be used to retrofit or re-engine 
        aircraft so as to increase the level of penetration into the 
        commercial fleet.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated from the funding provided for the Next Generation Air 
Transportation System program such sums as necessary to carry out this 
section.
    ``(d) Progress Reports.--The Administrator shall publish a progress 
report on the CLEEN program each year beginning in 2009.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 475 is 
amended by inserting after the item relating to section 47511 the 
following:

``47512. Research consortium for lower energy, emissions, and noise 
                            technology partnership.''.

SEC. 607. AMENDMENTS TO AIR TOUR MANAGEMENT PROGRAM.

    (a) In General.--Section 40128(a) is amended--
            (1) by striking ``lands.'' in paragraph (1)(C) and 
        inserting ``lands, or a voluntary agreement.''; and
            (2) by adding at the end the following:
            ``(5) Exemption.--Notwithstanding paragraph (1), units of 
        the national park system that have 50 or fewer commercial air 
        tour flights a year shall be exempt from the requirements of 
        this section, except that the Director may determine at any 
        time that this exemption shall not apply to any park for which 
        the Director determines an air tour management plan or 
        voluntary agreement is necessary to protect park resources and 
        values or park visitor use and enjoyment. The Director shall 
        inform the Administrator in writing of such determinations. The 
        Director and Administrator shall publish an annual list of 
        national parks that fall within the exemption provided by this 
        paragraph. A commercial air tour operator conducting commercial 
        air tours in a national park that is exempt from the 
        requirements of this section shall submit to the Administrator 
        and the Director an annual report of the number of air tour 
        flights it conducts each year in such exempted park.''.
    (b) Air Tour Management Plans.--Section 40128(b) is amended by 
adding at the end the following:
            ``(7) Voluntary agreements.--
                    ``(A) As an alternative to an air tour management 
                plan, for any unit of the national park system, the 
                Director and the Administrator may enter into a 
                voluntary agreement to manage commercial air tour 
                operations over a park unit with any commercial air 
                tour operators that have applied for authority to 
                conduct air tour operations over the park unit, 
                including existing operators that have interim 
                operating authority, and new entrant applicants.
                    ``(B) The voluntary agreement shall address the 
                management issues necessary to protect park resources 
                and visitor use without compromising aviation safety, 
                and may--
                            ``(i) include provisions described in 
                        subparagraphs (B) through (E) of paragraph (3);
                            ``(ii) include provisions to insure the 
                        stability of and compliance with the voluntary 
                        agreement; and
                            ``(iii) provide for fees for operating over 
                        the park.
                    ``(C) The Director and the Administrator shall 
                offer the opportunity for public review of a proposed 
                voluntary agreement, and shall consult with any Indian 
                tribe whose tribal lands are, or may be, overflown by 
                commercial air tour operators under a voluntary 
                agreement.
                    ``(D) Following such public review and 
                consultation, a voluntary agreement may be implemented 
                without further administrative or environmental 
                process.
                    ``(E) A voluntary agreement may be rescinded at the 
                discretion of the Director or the Administrator if the 
                Director determines that the agreement is not 
                adequately protecting park resources or visitor 
                experiences, or the Administrator determines that the 
                agreement is adversely affecting aviation safety or the 
                national aviation system. If a voluntary agreement for 
                a park is rescinded, the operators must conform to the 
                requirements for interim operating authority under 
                subsection (c) until an air tour management plan for 
                the park is in effect.''.
    (c) Interim Operating Authority.--Section 40128(c) is amended--
            (1) by striking subparagraph (I) of paragraph (2) and 
        inserting the following:
            ``(I) may allow for modifications of the interim operating 
        authority without further environmental process if--
                    ``(i) adequate information on the operator's 
                existing and proposed operations is provided to the 
                Administrator and the Director by the operator making 
                the request;
                    ``(ii) the Administrator agrees that there would be 
                no adverse impact on aviation safety; and
                    ``(iii) the Director agrees, based on professional 
                expertise regarding the protection of the park 
                resources and values and visitor use and enjoyment.'';
            (2) by striking from ``if the Administrator determines'' in 
        paragraph (3)(A) through the end and inserting ``without 
        further environmental process if--
                    ``(i) adequate information on the operator's 
                proposed operations is provided to the Administrator 
                and the Director by the operator making the request;
                            ``(ii) the Administrator agrees that there 
                        would be no adverse impact on aviation safety; 
                        and
                            ``(iii) the Director agrees, based on 
                        professional expertise regarding the protection 
                        of park resources and values and visitor use 
                        and enjoyment.''; and
            (3) by striking subparagraph (B) of paragraph (3) and 
        redesignating subparagraph (C) as subparagraph (B).
    (d) Commercial Air Tour Operator Reports.--Section 40128 is amended 
by redesignating subsections (d) and (e) as subsections (e) and (f), 
respectively, and inserting after subsection (c) the following:
    ``(d) Commercial Air Tour Operator Reports.--Each commercial air 
tour operator providing a commercial air tour over a national park unit 
under interim operating authority or in accordance with an air tour 
management plan shall report the number of commercial air tour 
operations over each park unit and other data requested by the 
Administrator and Director in order to facilitate administering the 
provisions of this section. The reports shall be on a frequency and in 
a format requested by the Administrator and Director, and shall be 
submitted to both the Administrator and Director or their designees. 
The Administrator and Director shall jointly issue an initial request 
for the reports authorized in this subsection no later than 3 months 
after the date of enactment of the Next Generation Air Transportation 
System Financing Reform Act of 2007.''.

                     TITLE VII--AVIATION INSURANCE

SEC. 701. GENERAL AUTHORITY.

    (a) In General.--Section 44302 is amended--
            (1) by striking ``subsection (c)'' in subsection (a)(1) and 
        inserting ``subsection (b)'';
            (2) by striking subsection (b) and redesignating 
        subsections (c) through (g) as subsections (b) through (f); and
            (3) by striking paragraph (2) of subsection (e), as 
        redesignated, and inserting the following:
            ``(2) Special rules.--Notwithstanding paragraph (1)k, in no 
        event shall the total premium paid by the air carrier for the 
        policy, as amended, be more than twice the premium that the air 
        carrier was paying to the Department of Transportation for its 
        third party policy as of June 19, 2002.''.
    (b) Conforming Amendment.--Section 44303(a) is amended by striking 
``reinsurance, or reimburse insurance costs,'' and inserting 
``reinsurance''.

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

    Section 44303(b) is amended by striking ``December 31, 2006,'' and 
inserting ``December 31, 2011,''.

SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY.

    Section 44304 is amended by striking ``the carrier'' and inserting 
``any insurance carrier''.

SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS.

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

SEC. 705. EXTENSION OF PROGRAM AUTHORITY.

    Section 44310 is amended by striking ``March 30, 2008.'' and 
inserting ``March 30, 2013.''.

               TITLE VIII--AVIATION SERVICE IMPROVEMENTS

SEC. 801. EXTENSION OF COMPETITIVE ACCESS REPORTS.

    Section 47107(s)(3) is amended by striking ``2008.'' and inserting 
``2012.''.

SEC. 802. ESSENTIAL AIR SERVICE REFORM.

    (a) Eligible Place Defined.--
            (1) In general.--Section 41731 is amended to read as 
        follows:
``Sec. 41731. Eligible place defined
    ``In this subchapter the term `eligible place' means a place in the 
United States--
            ``(1) that as of the date of enactment of the Next 
        Generation Air Transportation System Financing Reform Act of 
        2007, was receiving subsidized Essential Air Service;
            ``(2) that is more than 70 highway miles from the nearest 
        medium or large hub airport; and
            ``(3) at which the subsidy per passenger does not exceed 
        $200 for a community that is less than 210 miles from the 
        nearest medium or large hub airport.''.
            (2) Conforming amendment.--The chapter analysis for chapter 
        417 is amended by striking the item relating to section 41731 
        and inserting the following:

``41731. Eligible place defined''.
    (b) Essential Air Service.--
            (1) In general.--Section 41732 is amended to read as 
        follows:
``Sec. 41732. Essential air service
    ``Essential air service provided under section 41733 of this title 
is transportation of passengers and cargo to a destination airport and 
at a level of service comparable to what the community received on the 
date of enactment of the Next Generation Air Transportation System 
Financing Reform Act of 2007.''.
            (2) Conforming amendment.--The chapter analysis for chapter 
        417 is amended by striking the item relating to section 41732 
        and inserting the following:

``41732. Essential air service.''.
    (c) Availability of Compensation.--
            (1) In general.--Section 41733 is amended to read as 
        follows:
``Sec. 41733. Selection criteria and availability of compensation
    ``(a) Availability of Compensation.--
            ``(1) If the Secretary decides that essential air service 
        under section 41732 will not be provided to an eligible place 
        without compensation, the Secretary shall provide notice that 
        any air carrier may apply to provide essential air service to 
        the place for compensation under this section. In selecting an 
        applicant, the Secretary may consider, among other factors--
                    ``(A) the demonstrated reliability of the applicant 
                in providing air service;
                    ``(B) the contractual and marketing arrangements 
                the applicant has made with air carriers to ensure 
                service beyond the destination airport;
                    ``(C) the interline arrangements that the applicant 
                has made with a larger carrier to allow passengers and 
                cargo of the applicant at the destination airport to be 
                transported by carriers through one reservation, 
                ticket, and baggage check-in;
                    ``(D) the preferences of the actual and potential 
                users of air service at the eligible place, giving 
                substantial weight to the views of the elected 
                officials representing the users; and
                    ``(E) the relative subsidy costs to the United 
                States Government based on the applicants' proposals.
            ``(2) Under guidelines prescribed under section 41737 of 
        this subchapter, the Secretary shall pay the rate of 
        compensation for providing essential air service under this 
        section and section 41734 of this subchapter.
    ``(b) Compensation Payments.--The Secretary shall pay compensation 
under this section at times and in the way the Secretary decides is 
appropriate. The Secretary shall end payment of compensation to an air 
carrier for providing essential air service to an eligible place when 
the Secretary decides the compensation is no longer necessary to 
maintain essential air service to the place.
    ``(c) Review.--The Secretary shall review periodically the level of 
essential air service for each eligible place. Based on the review and 
consultations with the interested community and the appropriate State 
authority of the State in which the community is located, the Secretary 
may make appropriate adjustments in the level of service, but the level 
of service that is subsidized may not be more than that which a 
community is receiving as of the date of enactment of the Next 
Generation Air Transportation System Financing Reform Act of 2007.''.
            (2) Conforming amendment.--The chapter analysis for chapter 
        417 is amended by striking the item relating to section 41733 
        and inserting the following:

``41733. Selection criteria and availability of compensation.''.
    (d) Ending, Suspending or Reducing Essential Air Service.--Section 
41734 is amended to read as follows:
``Sec. 41734. Ending, suspending, and reducing essential air service
    ``(a) Notice Required.--An air carrier may end, suspend, or reduce 
air transportation to an eligible place below the level of essential 
air service established for that place under this subchapter only after 
giving the Secretary of Transportation, the appropriate State 
authority, and the affected communities at least 90 days' notice before 
ending, suspending, or reducing that air service.
    ``(b) Continuation of Service for 30 Days after Notice Period.--If 
at the end of the notice period under subsection (a) of this section 
the Secretary has not found another air carrier to provide essential 
air service to the eligible place, the Secretary shall require the 
carrier providing notice to continue to provide essential air service 
to the place for an additional 30-day period or until another air 
carrier begins to provide essential air service to the place, whichever 
occurs first.
    ``(c) Continuation of Service for Additional 30-Day Periods.--If at 
the end of the 30-day period under subsection (b) of this section the 
Secretary decides another air carrier will not provide essential air 
service to the place on a continuing basis, the Secretary shall require 
the air carrier providing service to continue to provide service for 
additional 30-day periods until another air carrier begins providing 
service on a continuing basis. At the end of each 30-day period, the 
Secretary shall decide if another air carrier will provide service on a 
continuing basis.
    ``(d) Continuation of Compensation After Notice Period.--If an air 
carrier receiving compensation under this subchapter for providing 
essential air service to an eligible place is required to continue to 
provide service to the place under this section after the 90-day notice 
period under subsection (a) of this section, the Secretary shall 
continue to pay that compensation after the last day of that period. 
The Secretary shall pay the compensation until the Secretary finds 
another air carrier to provide the service to the place or the 180th 
day after the carrier filed notice to suspend service, whichever is 
earlier. If, after the 180th day, the Secretary has not found another 
air carrier to provide the service, the carrier required to continue to 
provide that service shall receive compensation sufficient to pay for 
the fully allocated actual cost to the air carrier of performing the 
essential air service that was being provided when the 90-day notice 
was given under subsection (a) of this section plus a reasonable return 
on investment that is equal to 5 percent of operating costs.
    ``(e) Finding Replacement Service Providers.--When the Secretary 
requires an air carrier to continue to provide essential air service to 
an eligible place, the Secretary shall promptly issue a request for 
proposals to find another air carrier to provide at least the essential 
air service set forth in section 41732 to the place on a continuing 
basis.''.
    (e) Compensation Guidelines.--Section 41737 is amended to read as 
follows:
``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 equipment of the type the Secretary decides 
                is appropriate for providing the service or 
                transportation for which compensation is being 
                provided.
            ``(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) 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 person of the denial 
        and the reasons for the denial.
    ``(c) Authority To Make Agreements and Incur Obligations.--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.
    ``(d) Eligibility Determinations.--
            ``(1) In making all determinations on eligibility for 
        compensation under this subchapter, the Secretary shall rank 
        all compensated points in their order of relative decreasing 
        driving distance from the nearest large or medium hub airport. 
        In this paragraph, the term `driving distance' means the 
        shortest driving distance as determined by the Federal Highway 
        Administration.
            ``(2) If the funds appropriated under section 41742 are not 
        sufficient to pay for service to all of the eligible places, 
        the Secretary shall provide subsidy first to the eligible 
        communities that do not have highway access to a medium or 
        large hub airport, then to the most isolated community, as 
        determined under paragraph (1), that requires compensation and 
        then the next most isolated community requiring compensation, 
        and so on, in order, until the Secretary has obligated not more 
        than the amount authorized to be appropriated from the Airport 
        and Airway Trust Fund under section 48203(b) of this title, 
        which shall remain available until expended.''.
    (f) Authorization.--Section 41742 is amended to read as follows:
``Sec. 41742. Essential air service authorization
    ``Beginning in fiscal year 2009, $50,000,000 is authorized and 
shall be made available immediately for obligation and expenditure 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 carry out the essential air service program 
under this subchapter for each fiscal year. Amounts appropriated 
pursuant to this section shall remain available until expended.''.
    (g) Repealed Provisions.--
            (1) Sections 41735, 41736, 41745, 41747, and 41748 are 
        repealed.
            (2) Subchapter III of chapter 417 is repealed.
    (h) Conforming Amendments.--
            (1) The analysis to chapter 417 is amended by striking the 
        items relating to sections 41735, 41736, 41745, 41747, and 
        41748.
            (2) The analysis to chapter 417 is amended by striking all 
        of the items relating to subchapter III.
            (3) Section 41738 is amended by striking ``or air 
        transportation to a place designated under 41736''.

SEC. 803. TERMINATION OF DOT AUTHORITY TO SET INTERNATIONAL MAIL RATES.

    (a) Elimination of International Mail Rate Setting Authority.--
Section 41901(b)(1) is amended by striking ``in foreign air 
transportation or''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 16 months after the date of enactment of this Act.

SEC. 804. AIR CARRIAGE OF INTERNATIONAL MAIL.

    (a) Elimination of Requirement to File Contract.--Section 5402(b) 
of title 39, United States Code, is amended by striking the last 3 
sentences.
    (b) Elimination of Schedules for Mail Transportation.--Section 
41902 is amended--
            (1) by striking ``in foreign air transportation or'' in 
        subsection (a);
            (2) by striking subsection (b) and inserting the following:
    ``(b) Statements on Places and Schedules.--Every air carrier shall 
file with the United States Postal Service a statement showing--
            ``(1) the places between which the carrier is authorized to 
        transport mail in Alaska;
            ``(2) every schedule of aircraft regularly operated by the 
        carrier between places described in clause (1) of this 
        subsection and every change in each schedule; and
            ``(3) for each schedule, the placed served by the carrier 
        and the time of arrival at, and departure from, each place.''; 
        and
            (3) by striking subsections (e) and (f).
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect 16 months after the date of enactment of this Act.

SEC. 805. CONTENTS OF COMPETITION PLANS.

    Section 47106(f)(2) is amended--
            (1) by striking ``patterns of air service,'';
            (2) by inserting ``and'' before ``whether''; and
            (3) by striking ``facilities, and airfare levels (as 
        compiled by the Department of Transportation) compared to other 
        large airports.'' and inserting ``facilities.''.

SEC. 806. AIRPORT PRIVATIZATION.

    Section 47134 is amended--
            (1) by striking ``5 airports'' in the first sentence of 
        subsection (b) and inserting ``15 airports'';
            (2) by striking so much of subsection (b) as precedes 
        paragraph (1)(B) and inserting the following:
    ``(b)Approval of Applications.--
            ``(1) Use of revenues.--
                    ``(A) In general.--The Secretary may grant an 
                exemption to a sponsor from the provisions of section 
                47107(b) and 47133 of this title (and any other law, 
                regulation, or grant assurance) to the extent necessary 
                to permit the sponsor to recover from the sale or lease 
                of the airport such amount as may be approved by the 
                Secretary after the sponsor has consulted--
                            ``(i) in the case of a primary airport, 
                        with each air carrier and foreign air carrier 
                        serving the airport as determined by the 
                        Secretary; or
                            ``(ii) in the case of a non-primary 
                        airport, with at least 65 percent of the owners 
                        of aircraft based at that airport, as 
                        determined by the Secretary.'';
            (3) by resetting the left margin of subparagraph (B) of 
        subsection (b)(1) 4 ems from the left;
            (4) by striking subparagraph (b)(1)(C);
            (5) by resetting the left margin of paragraphs (2) and (3) 
        of subsection (b) 2 ems from the left;
            (6) by striking paragraphs (4), (5), and (9) of subsection 
        (c) and redesignating paragraphs (6) through (8) as paragraphs 
        (4) through (6), respectively;
            (7) adding at the end of subsection (c) the following:
            ``(7) No part of a fee charged to an air carrier or a 
        foreign air carrier may include a return on investment or 
        recovery of principal with respect to consideration paid to the 
        public agency for the lease or sale of the airport unless such 
        part of the fee is approved by the air carrier or foreign air 
        carrier.''; and
            (8) by striking subsection (d) and redesignating 
        subsections (e) through (m) as subsections (d) through (l), 
        respectively.

SEC. 807. CLARIFICATION OF AIR CARRIER FEE DISPUTES.

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

``47129. Resolution of airport-air carrier and foreign air carrier 
                            disputes concerning airport fees.''.

SEC. 808. AMENDMENTS TO CHAPTER 415.

    (a) In General.--Chapter 415 is amended--
            (1) by striking sections 41501 and 41502 and inserting the 
        following:
``Sec. 41501. Establishing reasonable prices, classifications, rules 
              and practices for foreign air transportation
    ``Every air carrier and foreign air carrier shall establish, comply 
with, and enforce reasonable prices, classifications, rules and 
practices related to foreign air transportation.
``Sec. 41502. Establishing joint prices for through routes with other 
              carriers
    ``An air carrier, including an indirect air carrier, may establish 
reasonable joint prices and through service with another carrier.'';
            (2) by striking sections 41503, 41505, 41506, 41508, and 
        41510;
            (3) by striking section 41504(a) and inserting the 
        following:
    ``(a) Filing and Contents.--In the way prescribed by regulation by 
the Secretary of Transportation, any air carrier or foreign air carrier 
providing foreign air transportation between places designated by the 
Secretary, and any air carrier or foreign air carrier granted immunity 
from the antitrust laws for the coordination of prices pursuant to 
section 41308 of this title, shall file with the Secretary, publish, 
and keep open to public inspection, tariffs showing the prices for the 
foreign air transportation provided by the carrier or provided by the 
carrier and another air carrier or foreign air carrier in which through 
service and joint prices have been established. A tariff--
            ``(1) shall contain--
                    ``(A) to the extent the Secretary requires by 
                regulation, a description of the classifications, 
                rules, and practices related to the foreign air 
                transportation;
                    ``(B) a statement of the prices in money of the 
                United States; and
                    ``(C) other information the Secretary requires by 
                regulation; and
            ``(2) may contain--
                    ``(A) a statement of the prices in money that is 
                not money of the United States; and
                    ``(B) information that is required under the laws 
                of a foreign country in or to which the air carrier or 
                foreign air carrier is authorized to operate.''; and
            (4) by striking subsection (e)
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