II 

110TH CONGRESS 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Next Generation Air Transportation System Financing 

6 Reform Act of 2007’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 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.


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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. 


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

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or a repeal of, a section or other 

5 provision, the reference shall be considered to be made to 

6 a section or other provision of title 49, United States 

7 Code. 

8 SEC. 3. EFFECTIVE DATE. 

9 Except as otherwise expressly provided, this Act and 

10 the amendments made by this Act shall be effective on 

11 the date of enactment. 

12 TITLE I—AUTHORIZATIONS 

13 SEC. 101. AUTHORIZATIONS FOR SAFETY AND OPERATIONS, 

14 AIR TRAFFIC FUNCTIONS, RESEARCH AND 

15 DEVELOPMENT. 

16 (a) In General.—Part C of subtitle VII is amended 

17 by striking chapter 482 and inserting in lieu thereof the 

18 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. 

19 ‘‘§ 48201. Air traffic organization 

20 ‘‘(a) AIR TRAFFIC ORGANIZATION ACCOUNT.—On 

21 October 1, 2007, the Secretary of the Treasury shall esVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tablish on the books of the Treasury a separate account 

2 to be known as the Air Traffic Organization Account. 

3 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad4 dition to amounts from the general fund of the Treasury 

5 as authorized in section 48204, not more than a total of 

6 the following amounts may be appropriated to the Sec7 retary of Transportation out of the Airport and Airway 

8 Trust Fund established under section 9502 of the Internal 

9 Revenue Code of 1986 (26 U.S.C. 9502) for capital, oper10 ating and overhead costs of providing air traffic control 

11 and related services: 

12 ‘‘(1) $7,915,516,000 for fiscal year 2008. 

13 ‘‘(2) $1,130,000,000 for fiscal year 2009. 

14 ‘‘(3) $1,126,000,000 for fiscal year 2010. 

15 ‘‘(c) USER FEES.— 

16 ‘‘(1) In addition to amounts authorized under 

17 subsection (b), amounts credited to the account es18 tablished under subsection (a) from fees collected 

19 under section 45305 of this title are authorized to 

20 be used for capital, operating and overhead costs of 

21 providing air traffic control and related services, as 

22 well as for the costs related to the assessment and 

23 collection of these fees. 

24 ‘‘(2) Notwithstanding any other provision of 

25 law, amounts credited to the account established 


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1 under subsection (a) shall be used only to carry out 

2 the air traffic functions of the Federal Aviation Ad3 ministration. 

4 ‘‘(d) AVAILABILITY OF AMOUNTS.—Amounts appro5 priated under this section shall remain available until ex6 pended. 

7 ‘‘§ 48202. Safety and operations 

8 ‘‘(a) SAFETY AND OPERATIONS ACCOUNT.—On Oc9 tober 1, 2007, the Secretary of the Treasury shall estab10 lish on the books of the Treasury a separate account to 

11 be known as the Safety and Operations Account. 

12 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad13 dition to amounts from the general fund of the Treasury 

14 as authorized in section 48204, not more than a total of 

15 the following amounts may be appropriated to the Sec16 retary of Transportation out of the Airport and Airway 

17 Trust Fund established under section 9502 of the Internal 

18 Revenue Code of 1986 (26 U.S.C. 9502) for programs, 

19 activities, and services relating to the Federal Aviation Ad20 ministration’s safety programs, services to the commercial 

21 space industry and other staff support functions: 

22 ‘‘(1) $671,594,000 for fiscal year 2008. 

23 ‘‘(2) $69,000,000 for fiscal year 2009. 

24 ‘‘(3) $69,000,000 for fiscal year 2010. 

25 ‘‘(c) USER FEES.— 


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1 ‘‘(1) Amounts credited to the account estab2 lished under subsection (a) from fees collected under 

3 sections 45305 and 45306 of this title, are author4 ized to be used for programs, activities and services 

5 relating to the Federal Aviation Administration’s 

6 safety programs and other staff support functions, 

7 as well as for the costs related to the assessment 

8 and collection of these fees. 

9 ‘‘(2) Notwithstanding any other provision of 

10 law, amounts credited to the account established 

11 under subsection (a) shall be used only to carry out 

12 the safety programs, services to the commercial 

13 space industry, and staff support functions of the 

14 Federal Aviation Administration. 

15 ‘‘(d) AVAILABILITY OF AMOUNTS.—Amounts appro16 priated under this section shall remain available until ex17 pended. 

18 ‘‘§ 48203. Civil aviation research and development 

19 ‘‘(a) AUTHORIZATION.—In addition to amounts from 

20 the general fund of the Treasury as authorized in section 

21 48204, not more than the following amounts may be ap22 propriated out of the Airport and Airway Trust Fund es23 tablished under section 9502 of the Internal Revenue Code 

24 of 1986 (26 U.S.C. 9502), to the Secretary of Transpor25 tation for conducting civil aviation research and developVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 ment under sections 44504, 44505, 44507, 44509, and 

2 44511 through 44513 of this title: 

3 ‘‘(1) $122,867,000 for fiscal year 2008. 

4 ‘‘(2) $174,000,000 for fiscal year 2009. 

5 ‘‘(3) $174,000,000 for fiscal year 2010. 

6 ‘‘(b) AVAILABILITY OF AMOUNTS.—Amounts appro7 priated under this section shall remain available until ex8 pended. 

9 ‘‘§ 48204. General fund authorization 

10 ‘‘Not more than the following amounts may be appro11 priated under this chapter from the general fund of the 

12 Treasury to the Secretary of Transportation for activities 

13 or services, the cost of which is not otherwise funded by 

14 fees established under chapter 453 of this title or by funds 

15 made available from the Airport and Airway Trust Fund, 

16 related to aviation safety regulation and oversight, re17 search and development, air traffic services provided to 

18 military, public or air ambulance aircraft, operation of 

19 Flight Service Stations and Automated Flight Service Sta20 tions, operation of air traffic control towers at airports 

21 with fewer than 100,000 passenger boardings per year, 

22 services to the commercial space industry, or other Fed23 eral Aviation Administration programs in the general pub24 lic interest, including the capital, operating, and overhead 

25 costs for such activities or services: 


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1 ‘‘(1) $2,618,322,000 for fiscal year 2008; 

2 ‘‘(2) $2,582,000,000 for fiscal year 2009; and 

3 ‘‘(3) $2,582,000,000 for fiscal year 2010.’’. 

4 (b) CONFORMING AMENDMENT.—The analysis for 

5 Part C of Subtitle VII is amended by revising the entry 

6 for chapter 482 to read as follows: 

‘‘482. Authorizations for Air Traffic Functions, Safety and Operations, and Research and Development ........................................... 48201’’. 

7 SEC. 102. AIRPORT PLANNING AND DEVELOPMENT AND 

8 NOISE COMPATIBILITY PLANNING AND PRO9 GRAMS. 

10 (a) AUTHORIZATION.—Section 48103 is amended— 

11 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

12 ‘‘The total’’; 

13 (2) by striking ‘‘September 30, 2003,’’ and in14 serting ‘‘September 30, 2007,’’; 

15 (3) by striking paragraphs (1) through (4) and 

16 inserting the following: 

17 ‘‘(1) $2,750,000,000 for fiscal year 2008; 

18 ‘‘(2) $2,900,000,000 for fiscal year 2009; and 

19 ‘‘(3) $3,050,000,000 for fiscal year 2010.’’; and 

20 (4) by adding at the end the following: 

21 ‘‘(b) AIRPORT COOPERATIVE RESEARCH PRO22 GRAM.—Not more than $15,000,000 per year for fiscal 

23 years 2008, 2009, and 2010 may be appropriated to the 

24 Secretary of Transportation from the amounts made availVerDate Aug 31 2005 22:54 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 able each year under subsection (a) for the Airport Coop2 erative Research Program under section 44511 of this 

3 title, of which not less than $5,000,000 per year shall be 

4 for research activities related to the airport environment, 

5 including reduction of community exposure to civil aircraft 

6 noise, reduction of civil aviation emissions, or addressing 

7 water quality issues.’’. 

8 (b) OBLIGATIONAL AUTHORITY.—Section 47104(c) 

9 is amended by striking ‘‘September 30, 2007,’’ and insert10 ing ‘‘September 30, 2010,’’. 

11 SEC. 103. AIRLINE DATA AND ANALYSIS. 

12 (a) AUTHORIZATION.—There is authorized to be ap13 propriated to the Secretary of Transportation out of the 

14 Airport and Airway Trust Fund established by section 

15 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 

16 9502), $4,000,000 per year for fiscal year 2008 and 

17 $6,000,000 for fiscal years 2009 and 2010 to fund airline 

18 data collection and analysis by the Bureau of Transpor19 tation Statistics in the Research and Innovative Tech20 nology Administration of the Department of Transpor21 tation. 

22 (b) ECONOMIC DATA PROGRAM REFORM.—In fiscal 

23 year 2009, the Secretary shall reform, by the most effi24 cient means available, the aviation economic data program 


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1 for the collection and dissemination of airline traffic and 

2 financial data. 

3 SEC. 104. OFFICE OF COMMERCIAL SPACE TRANSPOR4 TATION. 

5 Section 70119 is amended— 

6 (1) by striking ‘‘and’’ in paragraph (4); 

7 (2) by striking ‘‘2009.’’ in paragraph (5) and 

8 inserting ‘‘2009; and’’; and 

9 (3) by adding at the end the following: 

10 ‘‘(6) $15,224,000 for fiscal year 2010.’’. 

11 SEC. 105. TRANSITION. 

12 (a) AUTHORIZATION FOR TRANSITION PERIOD.—For 

13 the purpose of supporting the transition to a user fee sys14 tem of financing under chapter 453, not more than 

15 $1,360,000,000 is authorized to be appropriated to the 

16 Secretary of Transportation from the general fund of the 

17 Treasury to provide services for an initial period of 60 

18 days for which user fees under sections 45305 (air traffic 

19 control and related fees) and 45306 (registration, certifi20 cation and related fees) are assessed. 

21 (b) FEE SURCHARGE.—The Administrator of the 

22 Federal Aviation Administration shall, subject to appro23 priation in advance, impose and collect a surcharge on the 

24 user fees established under sections 45305 and 45306 for 

25 fiscal year 2009 in an amount and manner so as to fully 


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1 recover and return to the general fund in fiscal year 2009 

2 the amount used for transition costs under this section. 

3 TITLE II—USER FEE AUTHORITY 

4 SEC. 201. FEES. 

5 (a) IN GENERAL.—Chapter 453 is amended by add6 ing at the end the following: 

7 ‘‘§ 45305. Air traffic control and related fees 

8 ‘‘(a) SCHEDULE OF FEES.— 

9 ‘‘(1) Not later than the date of transition, the 

10 Administrator of the Federal Aviation Administra11 tion shall establish fees for air traffic control and re12 lated activities, services, facilities and equipment 

13 provided by, or on behalf of, the Administration in 

14 accordance with this section. Except as provided in 

15 subsection (c), owners or operators of aircraft in the 

16 national airspace system shall pay the fees assessed 

17 under this section. The Administrator may establish 

18 separate fees for aircraft operating in terminal, en 

19 route, or oceanic airspace. 

20 ‘‘(2) For purposes of this section and section 

21 45306, the term ‘date of transition’ means October 

22 1, 2008. 

23 ‘‘(3) In establishing fees under paragraph (1), 

24 the Administrator may establish interim fees for a 

25 period not to exceed 1 year after the date of transiVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tion, and may impose a surcharge on such fees in 

2 order to recover the full costs of services during the 

3 initial period of transition to user fees. The estab4 lishment of such interim fees would not be subject 

5 to the requirements of subsection (e)(2). 

6 ‘‘(4) In accordance with this section, the Ad7 ministrator may periodically modify the fees estab8 lished under this section either on the Administra9 tor’s own initiative, based on the requirements of the 

10 agency or the users of the National Airspace Sys11 tem, or on a recommendation from the Board under 

12 subsection (e)(2) of this section. 

13 ‘‘(b) BASIS FOR FEES; COMPUTATION METHODS.— 

14 ‘‘(1) EN ROUTE AND OCEANIC.—In establishing 

15 fees for aircraft operating in en route or oceanic air16 space, including fees for aircraft that operate in 

17 United States controlled airspace but neither take 

18 off from, nor land in, the United States, the Admin19 istrator may base the fee on distance traveled, or on 

20 any other method that is consistent with the treaties 

21 and international agreements to which the United 

22 States is a party. 

23 ‘‘(2) TERMINAL AIRSPACE.—For aircraft oper24 ations in terminal airspace, the Administrator may 

25 establish a fee with the following elements: 


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1 ‘‘(A) For takeoffs and landings at airports 

2 with greater than 100,000 passenger boardings 

3 per year. 

4 ‘‘(B) That may be based on the weight of 

5 the aircraft. 

6 ‘‘(C) Specifically for aircraft operating in 

7 terminal airspace for a large hub airport, as de8 fined by section 40102(a)(29). 

9 ‘‘(D) Specifically for terminal airspace for 

10 a large hub airport that varies with the time of 

11 day, day of the week, or for a particular large 

12 hub airport if the Administrator determines— 

13 ‘‘(i) that such airspace is congested; 

14 ‘‘(ii) that such congestion results in 

15 whole or in part from the limitation on the 

16 capacity of the large hub airport or air17 ports; and 

18 ‘‘(iii) that establishing such a fee will 

19 help reduce delays in the national airspace 

20 system. 

21 ‘‘(E) A fee that is different for nighttime 

22 operations than for daytime operations. 

23 ‘‘(3) QUANTITATIVE STANDARDS.—For the pur24 pose of the determinations required by paragraph 

25 (2)(D), the Administrator shall issue quantitative 


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1 standards for the levels of airspace and airport con2 gestion, operating delays, effect of airport delay on 

3 national system delay, and feasibility of increasing 

4 the capacity of a congested airport, and make such 

5 determinations in accordance with those standards. 

6 ‘‘(4) AIRCRAFT ALTITUDE.—Nothing in this 

7 section shall require the Administrator to take into 

8 account aircraft altitude in establishing any fee for 

9 aircraft operations in terminal, en route or oceanic 

10 airspace. 

11 ‘‘(5) INCENTIVE FOR EQUIPAGE.—The Admin12 istrator may establish reduced fees for aircraft that 

13 are equipped with avionics whose use the Adminis14 trator determines would enhance the safety or effi15 ciency of the National Airspace System if the Ad16 ministrator finds that such a fee structure would 

17 create an incentive for the purchase and installation 

18 of such equipment. 

19 ‘‘(6) RELATION TO COSTS.—The fees estab20 lished under this section shall be based on the costs 

21 to the Administration of providing the air traffic 

22 control and related activities, services, facilities, and 

23 equipment using the available data derived from the 

24 agency’s cost accounting system and cost allocation 

25 system to users. For purposes of this paragraph, the 


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1 term ‘costs’ means those costs associated with the 

2 operation, maintenance, debt service, and overhead 

3 expenses of the services provided and the facilities 

4 and equipment used in such services, including the 

5 projected costs for the period during which the serv6 ices will be provided, but shall not include the cost 

7 of providing services to aircraft described in sub8 section (c). 

9 ‘‘(7) RESERVE.—The fees that the Adminis10 trator establishes under this section may also include 

11 amounts sufficient to cover the costs of providing air 

12 traffic control and related activities, services, facili13 ties and equipment in the event that receipts are less 

14 than projected, whether such a shortfall is caused by 

15 a decrease in aircraft operations, delinquent pay16 ment of fees by any person, or for another com17 parable reason. 

18 ‘‘(8) ANNUAL REVIEW.—The Administrator 

19 shall provide for an annual independent review to 

20 validate that the agency used actual costs for the 

21 year, which were prepared in accordance with gen22 erally accepted accounting principles, and compiled 

23 those costs in accordance with the agency’s docu24 mented cost allocation methodology. 


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1 ‘‘(9) FEES CREDITED AS OFFSETTING COLLEC2 TIONS.—Any fee authorized to be collected under 

3 this section shall, subject to appropriation made in 

4 advance— 

5 ‘‘(A) be credited as offsetting collections to 

6 the account established under section 48201(a) 

7 of this title; and 

8 ‘‘(B) be available to the Administrator for 

9 expenditure only to pay the costs of activities 

10 and services for which the fee is imposed, in11 cluding the costs to determine, assess, review 

12 and collect the fee. 

13 ‘‘(10) EFFECT OF LAW ON FEE COLLECTION.— 

14 The Administrator may continue to assess and col15 lect and spend fees established under this section 

16 during any period in which the agency’s funding is 

17 provided under an Act providing continuing appro18 priations in lieu of the agency’s regular appropria19 tions. 

20 ‘‘(c) EXCEPTIONS.— 

21 ‘‘(1) MILITARY AND OTHER PUBLIC AIR22 CRAFT.—Fees may not be assessed under this sec23 tion for air traffic control and related services pro24 vided to military aircraft, public aircraft (as defined 

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1 craft, or to military or non-commercial civil aircraft 

2 of a foreign government. 

3 ‘‘(2) GENERAL AVIATION OPERATIONS.—Except 

4 for fees established for operations in terminal air5 space for a large hub airport under subsection 

6 (b)(2), no fees may be established under this section 

7 for air traffic control and related services provided 

8 to aircraft operations using fuel for which a tax was 

9 paid under section 4081(a)(2) of the Internal Rev10 enue Code of 1986, except taxes paid at the rate 

11 specified in section 4081(a)(2)(C)(i) of such Code. 

12 The exception provided by this paragraph shall cease 

13 to be effective if the rate of tax for fuel under sec14 tion 4081(a)(2) of such Code is lower than 70.0 

15 cents per gallon, starting on the date of transition, 

16 unless the lower rate is the result of adjustments 

17 made under section 4081(a)(2) of the Internal Rev18 enue Code of 1986. 

19 ‘‘(3) FLIGHT PLAN INFORMATION.—Any person 

20 required to file a flight plan with the Administra21 tion, including operators of flights described in para22 graphs (1) and (2), shall specify in the plan whether 

23 the person is engaged in an operation for compensa24 tion or hire, or a general aviation operation, or a 


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1 military or public aircraft operation, for purposes of 

2 this section. 

3 ‘‘(4) CANADA TO CANADA FLIGHTS.—The Ad4 ministrator may waive a fee that would otherwise be 

5 assessed under this chapter for flights that operate 

6 in United States-controlled airspace but takeoff and 

7 land at an airport in Canada without an inter8 mediate stop outside Canada, if the Administrator 

9 determines that not assessing and collecting the fee 

10 for such flights would be in the public interest. 

11 ‘‘(d) ADMINISTRATIVE PROVISIONS.— 

12 ‘‘(1) FEES PAYABLE TO THE ADMINIS13 TRATOR.—Fees assessed and amounts collected 

14 under this section are payable to the Administrator. 

15 The Administrator may refund any fee, or portion 

16 thereof, paid by mistake in excess of the amount re17 quired. 

18 ‘‘(2) COLLECTION PROCEDURES.—The Admin19 istrator shall establish procedures for the collection 

20 of fees. These procedures shall establish the fre21 quency of payment, deadlines for payment, a max22 imum amount of fees that may be outstanding on 

23 the account of any person, and such other limita24 tions and conditions as the Administrator deterVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 mines are necessary to obtain prompt payment of 

2 fees. 

3 ‘‘(3) FAILURE TO PAY REQUIRED FEES.—If the 

4 Administrator determines that any person has failed 

5 to pay fees when due under this section, or to com6 ply with any limitation or condition on payment 

7 under this section, or to provide the Administration 

8 with the correct information in the person’s flight 

9 plan or by other means regarding the nature of the 

10 flight, including whether the person engaged in an 

11 operation for compensation or hire or general avia12 tion operation, the Administrator may— 

13 ‘‘(A) assess interest charges, using a rate 

14 equal to 150 percent of a rate determined by 

15 the Secretary of the Treasury based on the av16 erage of bond equivalent yields on 13-week 

17 Treasury bills auctioned during the previous 

18 calendar quarter, to be redetermined quarterly, 

19 on amounts that have not been paid by the 

20 deadline; 

21 ‘‘(B) change the required payment sched22 ule for such person; 

23 ‘‘(C) offset any amount of fees owed by 

24 withholding any payment otherwise owed or due 


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1 to the person by the Secretary or the Adminis2 trator; 

3 ‘‘(D) upon 24 hours notice, terminate, re4 duce, or withhold the provision of non-emer5 gency air traffic control and related services to 

6 such person, except that, in any case involving 

7 a foreign air carrier, the Administrator shall 

8 take such actions as are necessary to comply 

9 with applicable international agreements; or 

10 ‘‘(E) impose a civil penalty for each day 

11 amounts remain unpaid, or take other appro12 priate enforcement action under this subtitle. 

13 ‘‘(4) ACTION WHEN FUTURE PAYMENT IN JEOP14 ARDY.—If the Administrator reasonably determines 

15 that an aircraft owner or operator will not pay its 

16 required fees when due, the Administrator may— 

17 ‘‘(A) change the required payment sched18 ule for such person; or 

19 ‘‘(B) upon 24 hours notice, terminate, re20 duce, or withhold the provision of non-emer21 gency air traffic control and related services to 

22 such person, except that, in any case involving 

23 a foreign air carrier, the Administrator shall 

24 take such actions as are necessary to comply 

25 with applicable international agreements. 


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1 ‘‘(5) PAYMENT NOT STAYED PENDING RE2 VIEW.—In any case where a person seeks adminis3 trative review of the Administrator’s action under 

4 this section, the collection of fees from that person 

5 may not be stayed pending resolution of the case. 

6 ‘‘(e) CONSULTATION REQUIREMENTS; APPROVAL OF

7 FEES.— 

8 ‘‘(1) Prior to establishing or modifying fees 

9 under this section or section 45306 of this title, the 

10 Administrator shall consult with air carriers, includ11 ing foreign air carriers, consistent with international 

12 agreements, and any other persons subject to such 

13 fees, and any other member of the public who wishes 

14 to file comments. For purposes of the section, the 

15 term ‘consult’ means to afford the opportunity to 

16 provide comments to, and have such comments con17 sidered by, the Administrator. 

18 ‘‘(2) Prior to establishing or modifying fees 

19 under this section or section 45306 of this title, the 

20 Administrator shall consult with and seek the rec21 ommendations of the type and level of such fees 

22 from the Air Transportation System Advisory Board 

23 established under section 106(p) of this title. The 

24 Board may, from time to time, recommend that the 

25 Administrator modify established fees based on the 


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1 needs of the agency or the users of the National Air2 space System. If the Board fails to recommend ap3 proval of any fee proposed by the Administrator, or 

4 if the Administrator fails to adopt the recommenda5 tion of the Board, the Administrator may establish 

6 or maintain such fees only after publishing in the 

7 Federal Register a written determination setting 

8 forth the reasons for the Administrator’s establish9 ment or modification of the fees and summarizing 

10 the views of the Board. 

11 ‘‘(3) Any person who is subject to fees estab12 lished in this section or section 45306 of this title, 

13 and who objects to the establishment or amount of 

14 such fees may appeal that decision exclusively to the 

15 Secretary of Transportation. The Secretary may dis16 approve the establishment or modification of fees if 

17 the Secretary finds that the fees— 

18 ‘‘(A) are not, in the case of fees under this 

19 section, based on costs as described in sub20 section (b)(6); 

21 ‘‘(B) do not fairly allocate system costs 

22 among users who pay fees; 

23 ‘‘(C) unreasonably discriminate against a 

24 particular category of users of the system; or 


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1 ‘‘(D) are not in accordance with the stra2 tegic plan of the Administration. 

3 ‘‘(4) The decision of the Administrator to estab4 lish or modify a fee or schedule of fees under this 

5 section or section 45306 of this title shall be effec6 tive unless disapproved by the Secretary within 60 

7 days after submission of the Administrator’s deci8 sion to the Secretary. The decision of the Secretary 

9 constitutes final agency action and is not subject to 

10 judicial review. 

11 ‘‘(f) EFFECT ON OTHER FEES.—Unless otherwise 

12 specified, nothing in this section or section 45306 shall 

13 be construed as affecting fees previously authorized and 

14 established under this chapter. 

15 ‘‘(g) EXEMPTION FROM RULEMAKING.—The require16 ments applicable to developing and issuing rules under 

17 title 5, United States Code, shall not apply to the actions 

18 of the Secretary, Administrator, or Board under this sec19 tion. 

20 ‘‘(h) STATUS OF AIRPORT.—Based on fiscal year 

21 2006 data, the Administrator shall publish a list of air22 ports that meet the criteria for a large hub airport under 

23 subsection (b)(2). The Administrator shall periodically up24 date such list. If in the fiscal year during which the list 

25 is first published or in any subsequent fiscal year in which 


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1 the list of airports is updated, an airport meets the criteria 

2 for a large hub airport under subsection (b)(2), such air3 port shall be deemed to remain in such status for 3 years 

4 regardless of fluctuation in the passenger boardings dur5 ing that time. 

6 ‘‘(i) DEFINITIONS.—For the purposes of this sec7 tion— 

8 ‘‘(1) AIR AMBULANCE AIRCRAFT.—The term 

9 ‘air ambulance aircraft’ means— 

10 ‘‘(A) rotorcraft which are engaged in an 

11 operation to provide emergency medical serv12 ices; or 

13 ‘‘(B) fixed-wing aircraft which are 

14 equipped for and exclusively dedicated to pro15 viding acute care medical services. 

16 ‘‘(2) ENROUTE AIRSPACE.—The term ‘en route 

17 airspace’ means airspace encompassing Class A and 

18 Class E airspace listed in part 71 of title 14 of the 

19 Code of Federal Regulations and subpart B of Fed20 eral Aviation Administration Order 7400.9N or a 

21 successor order; 

22 ‘‘(3) TERMINAL AIRSPACE.—The term ‘terminal 

23 airspace’ means airspace encompassing Class B, 

24 Class C, and Class D airspace listed in part 71 of 

25 title 14 of the Code of Federal Regulations and subVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 part B of Federal Aviation Administration Order 

2 7400.9N or a successor order. 

3 ‘‘(4) OCEANIC AIRSPACE.—The term ‘oceanic 

4 airspace’ means United States-controlled airspace 

5 over an ocean. 

6 ‘‘§ 45306. Registration, certification and related fees 

7 ‘‘(a) IMPOSITION OF REGISTRATION FEES.—On the 

8 date of transition, the Administrator shall establish the 

9 following fees for the following services or activities: 

10 ‘‘(1) $130 for registering an aircraft. 

11 ‘‘(2) $45 for replacing an aircraft registration. 

12 ‘‘(3) $130 for issuing an original dealer’s air13 craft certificate. 

14 ‘‘(4) $105 for issuing an additional aircraft cer15 tificate. 

16 ‘‘(5) $80 for issuing a special registration num17 ber. 

18 ‘‘(6) $50 for issuing a renewal of a special reg19 istration number. 

20 ‘‘(7) $130 for recording a security interest. 

21 ‘‘(8) $130 for recording a security interest in 

22 aircraft parts. 

23 ‘‘(9) $50 for issuing an airman certificate. 

24 ‘‘(10) $25 for issuing a replacement airman 

25 certificate. 


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1 ‘‘(11) $42 for issuing an airman medical certifi2 cate. 

3 ‘‘(12) $100 for providing legal title opinions 

4 pertaining to aircraft transactions. 

5 ‘‘(b) ESTABLISHMENT OF CERTIFICATION FEES.— 

6 ‘‘(1) IN GENERAL.—The Administrator shall es7 tablish fees for the following services or activities: 

8 ‘‘(A) The appointment of a designee (other 

9 than designated medical examiners). 

10 ‘‘(B) The appointment of delegated organi11 zations. 

12 ‘‘(C) The training of a designee. 

13 ‘‘(D) The issuance of a certificate to a 

14 flight school under Part 141 of title 14 of the 

15 Code of Federal Regulations. 

16 ‘‘(E) The issuance of a certificate to a 

17 training center under Part 142 of title 14 of 

18 the Code of Federal Regulations. 

19 ‘‘(F) The issuance of a certificate to a 

20 large domestic repair station under part 145 of 

21 title 14 of the Code of Federal Regulations. 

22 ‘‘(G) The issuance of a certificate to a me23 dium domestic repair station under part 145 of 

24 title 14 of the Code of Federal Regulations. 


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1 ‘‘(H) The issuance of a certificate to a 

2 small domestic repair station under part 145 of 

3 title 14 of the Code of Federal Regulations. 

4 ‘‘(I) The issuance of a certificate to a large 

5 foreign repair station under part 145 of title 14 

6 of the Code of Federal Regulations. 

7 ‘‘(J) The issuance of a certificate to a me8 dium foreign repair station under part 145 of 

9 title 14 of the Code of Federal Regulations. 

10 ‘‘(K) The issuance of a certificate to a 

11 small foreign repair station under part 145 of 

12 title 14 of the Code of Federal Regulations. 

13 ‘‘(L) The issuance of a certificate to a 

14 maintenance technical school under part 147 of 

15 title 14 of the Code of Federal Regulations. 

16 ‘‘(M) Training provided to foreign aviation 

17 authorities. 

18 ‘‘(2) RELATION TO COSTS.—The fees that the 

19 Administrator establishes and assesses under this 

20 section, shall be based on the costs to the Adminis21 tration of providing such activities and services 

22 using the available data derived from the agency’s 

23 cost accounting system and cost allocation system to 

24 users. For purposes of this section, the term ‘costs’ 

25 shall mean those costs associated with capital, operVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 ation and maintenance, and overhead, including the 

2 projected costs for the period during which the serv3 ices are provided. 

4 ‘‘(c) FEES FOR OTHER SERVICES.—The Adminis5 trator may establish and collect such additional fees as 

6 may be necessary to cover the cost of aviation certification, 

7 regulation, and related services not enumerated in sub8 section (b), including any additional cost of providing serv9 ices outside the United States. 

10 ‘‘(d) FEES CREDITED AS OFFSETTING COLLEC11 TIONS.— 

12 ‘‘(1) Any fee authorized to be collected under 

13 this section shall, subject to appropriation made in 

14 advance— 

15 ‘‘(A) be credited as offsetting collections to 

16 the account established under section 48202(a) 

17 of this title; and 

18 ‘‘(B) be available for expenditure only to 

19 pay the costs of activities and services for which 

20 the fee is imposed, including the costs to deter21 mine, assess, review and collect the fee. 

22 ‘‘(2) The Administrator may continue to assess 

23 and collect and spend fees established under this 

24 section during any period in which the agency’s 

25 funding is provided under an Act providing conVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tinuing appropriations in lieu of the agency’s regular 

2 appropriations. 

3 ‘‘(e) ADJUSTMENTS.—The Administrator shall peri4 odically adjust the fees established by subsections (a) or 

5 (b)— 

6 ‘‘(1) to reflect changes in the Consumer Price 

7 Index of All Urban Consumers published by the Sec8 retary of Labor; 

9 ‘‘(2) when data reveal that the cost of providing 

10 the service is higher or lower than the cost data that 

11 was used to establish the fee then in effect; or 

12 ‘‘(3) when the Board recommends an adjust13 ment in the fees, in accordance with the procedures 

14 under subsection (g). 

15 ‘‘(f) ADMINISTRATIVE PROVISIONS.— 

16 ‘‘(1) FEES PAYABLE TO THE ADMINIS17 TRATOR.—All fees assessed and amounts collected 

18 under this section are payable to the Administrator. 

19 The Administrator may refund any fee, or portion 

20 thereof, paid by mistake in excess of the amount re21 quired. 

22 ‘‘(2) COLLECTION PROCEDURES.—The Admin23 istrator shall establish procedures for the collection 

24 of fees. These procedures shall establish the fre25 quency of payment, deadlines for payment, a maxVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 imum amount of fees that may be outstanding on 

2 the account of any person, and such other limita3 tions and conditions as the Administrator deter4 mines are necessary to obtain prompt payment of 

5 fees. 

6 ‘‘(3) FAILURE TO PAY REQUIRED FEES.—If the 

7 Administrator determines that any person has failed 

8 to pay fees when due under this section or to comply 

9 with any limitation or condition on payment under 

10 this section, the Administrator may— 

11 ‘‘(A) assess interest charges, using a rate 

12 equal to 150 percent of a rate determined by 

13 the Secretary of the Treasury based on the av14 erage of bond equivalent yields on 13-week 

15 Treasury bills auctioned during the previous 

16 calendar quarter, to be redetermined quarterly, 

17 on amounts that have not been paid by the 

18 deadline; 

19 ‘‘(B) change the required payment sched20 ule for such person; 

21 ‘‘(C) upon 24 hours notice to the person, 

22 terminate, reduce or withhold non-emergency 

23 services or in any case involving a foreign air 

24 carrier, the Administrator shall take such acVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tions as are necessary to comply with applicable 

2 international agreements; or 

3 ‘‘(D) impose a civil penalty for each day 

4 amounts remain unpaid, or take other appro5 priate enforcement action under this subtitle. 

6 ‘‘(4) ACTION WHEN FUTURE PAYMENT IN JEOP7 ARDY.—If the Administrator reasonably determines 

8 that a person will not pay its required fees when 

9 due, the Administrator may— 

10 ‘‘(A) change the required payment sched11 ule for such person; or 

12 ‘‘(B) upon 24 hours notice, terminate, re13 duce, or withhold non-emergency services to 

14 such person, except that, in any case involving 

15 a foreign air carrier, the Administrator shall 

16 take such actions as are necessary to comply 

17 with applicable international agreements. 

18 ‘‘(5) PAYMENT NOT STAYED PENDING RE19 VIEW.—In any case where a person seeks adminis20 trative review of the Administrator’s action under 

21 this section, the collection of fees from that person 

22 may not be stayed pending resolution of the case. 

23 ‘‘(g) PROCEDURE FOR IMPOSITION OF FEES.—In es24 tablishing or modifying fees under this section, the proceVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 dures and requirements of section 45305(e) of this title 

2 shall apply. 

3 ‘‘(h) EXEMPTION FROM RULEMAKING.—The require4 ments applicable to developing and issuing rules under 

5 title 5, United States Code, shall not apply to the actions 

6 of the Secretary, Administrator, or Board under this sec7 tion. 

8 ‘‘§ 45307. Rules of construction 

9 Notwithstanding any other law, the fees computed, 

10 established, assessed, modified, or approved under this 

11 chapter shall be governed by the provisions of this chapter 

12 and not the provisions of section 9701 of title 31. 

13 ‘‘§ 45308. Borrowing authority 

14 ‘‘(a) IN GENERAL.— 

15 ‘‘(1) In order to support the transition to the 

16 Next Generation Air Transportation System, in fis17 cal years 2013 through 2017 the Secretary of 

18 Transportation is authorized to issue obligations to 

19 the Secretary of the Treasury to finance capital in20 vestments in the facilities and equipment of the air 

21 traffic control system to be owned and operated by 

22 the Federal Aviation Administration. The Secretary 

23 of the Treasury, in the Secretary’s discretion, may 

24 purchase any such obligations, provided that the 


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1 Secretary first determines that there is reasonable 

2 assurance of repayment of such obligations. 

3 ‘‘(2) The Secretary shall not issue any obliga4 tions under paragraph (1) without first obtaining 

5 approval by the Director of the Office of Manage6 ment and Budget of the issuance of such obligations 

7 and proposed investments to be financed. 

8 ‘‘(b) CONDITIONS AND LIMIT ON INDEBTEDNESS.— 

9 Obligations issued under this section shall be in such 

10 forms and denominations, bear such maturities, and shall 

11 be subject to such terms and conditions as may be pre12 scribed by the Secretary of the Treasury. The aggregate 

13 amount of all such obligations shall not exceed 

14 $5,000,000,000 and all obligations shall be repaid by the 

15 Secretary of Transportation by the end of fiscal year 

16 2017. 

17 ‘‘(c) USER FEE INCREASE.—Upon the issuance of 

18 obligations under paragraph (1), the Secretary of Trans19 portation shall increase the user fees authorized in sec20 tions 45305 and 45306 in each of the fiscal years 2013 

21 to 2017 in the amounts required to repay such obligations 

22 with interest, and such payments shall have first priority 

23 in the use of fees collected during this period. This in24 crease in user fees shall not be treated as discretionary 


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1 offsetting collections and shall only be used to repay the 

2 obligations incurred under paragraph (1). 

3 ‘‘(d) INTEREST RATE.—The interest rate on obliga4 tions issued under this section shall be a rate determined 

5 by the Secretary of the Treasury, taking into consideration 

6 the current market yields on outstanding marketable obli7 gations of the United States of comparable maturity, plus 

8 a surcharge, determined by the Secretary of the Treasury, 

9 to be sufficient to cover any potential losses and the ad10 ministrative costs associated with the obligations. Any sur11 charges for administrative costs collected by the Secretary 

12 of the Treasury shall be credited to the appropriation ac13 count which incurred the cost. 

14 ‘‘(e) PURCHASE OF OBLIGATIONS.—For the purposes 

15 of purchasing obligations under subsection (a), the Sec16 retary of the Treasury may use as a public debt trans17 action the proceeds from the sale of any securities issued 

18 under chapter 31 of title 31, United States Code, and the 

19 purposes for which securities may be issued under such 

20 chapter are extended to include any purchase of such obli21 gations under this subsection.’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) The title of chapter 453 is amended to read 

24 as follows: 


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‘‘CHAPTER 453. FEES AND FINANCING’’. 

1 (2) The chapter analysis for chapter 453 is 

2 amended by inserting after the item relating to sec3 tion 45304 the following: 

‘‘45305. Air traffic control and related fees. 

‘‘45306. Certification, registration, and related fees. 

‘‘45307. Rules of construction. 

‘‘45308. Borrowing authority.’’. 

4 (3) The analysis of Part A of subtitle VII is 

5 amended by striking the item relating to chapter 

6 453 and inserting the following: 

‘‘453. FEES AND FINANCING ....................................................... 45301’’. 

7 SEC. 202. CONFORMING AMENDMENTS. 

8 (a) CIVIL PENALTIES.—Section 46301(a) is amend9 ed— 

10 (1) by inserting ‘‘chapter 453,’’ in paragraph 

11 (1)(A) before ‘‘section 47107(b)’’; 

12 (2) by striking ‘‘or chapter 449’’ in paragraph 

13 (5) and inserting ‘‘chapter 449’’; and 

14 (3) by striking ‘‘44907–44909)’’ and inserting 

15 ‘‘44907–44909), or chapter 453’’. 

16 (b) FEES FOR OVERFLIGHTS, FOREIGN SERVICES, 

17 AND SERVICES TO GENERAL AVIATION.—Effective Octo18 ber 1, 2008, sections 45301 and 45302 are repealed. 

19 (c) ADMINISTRATIVE PROVISIONS.—Effective Octo20 ber 1, 2008, in section 45303 is amended by striking (a), 

21 (b), and (c) and redesignating subsections (d), (e), and 

22 (f) as subsections (a), (b), and (c), respectively. 


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1 TITLE III—AIRPORT IMPROVE2 MENT PROGRAM AMEND3 MENTS 

4 SEC. 301. REFORM OF PASSENGER FACILITY CHARGE AU5 THORITY. 

6 (a) BROADENING ELIGIBILITY.— 

7 (1) Section 40117 is amended— 

8 (A) by striking the section caption and in9 serting the following: 

10 ‘‘§ 40117. Passenger facility charges’’; 

11 (B) by striking subparagraphs (A) through 

12 (G) of subsection (a)(3) and inserting the fol13 lowing: 

14 ‘‘(A) A project for capital costs of the air15 port or local airport system under section 

16 47107(b)(1)(A) and (B). 

17 ‘‘(B) A project for capital costs of a local 

18 facility that is directly and substantially related 

19 to air transportation of passengers or property 

20 and that is available for public use under sec21 tion 47107(b)(1)(C).’’; 

22 (C) by striking paragraph (4) and (5) of 

23 subsection (a) and inserting the following: 

24 ‘‘(4) INTERMODAL GROUND ACCESS PROJECT.— 

25 The term ‘intermodal ground access project’ means 


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1 a local facility that is directly and substantially re2 lated to the movement of passengers or property in 

3 the form of a fixed guideway system (as defined in 

4 section 5302 of this title) that is a component of a 

5 fixed guideway system that provides transportation 

6 services to the general public or that connects to 

7 such a fixed guideway system. 

8 ‘‘(5) PASSENGER FACILITY CHARGE.—The term 

9 ‘passenger facility charge’ means a charge imposed 

10 under this section.’’; and 

11 (D) by striking ‘‘fee.’’ in subsection (a)(6) 

12 and inserting ‘‘charge.’’. 

13 (2) CONFORMING AMENDMENTS.— 

14 (A) Section 47107(b)(1)(C) is amended to 

15 read as follows: 

16 ‘‘(C) any other local facility that is directly and 

17 substantially related to air transportation of pas18 sengers or property and that is available for public 

19 use.’’. 

20 (B) Section 47133(a)(3) is amended to 

21 read as follows: 

22 ‘‘(3) any other local facility that is directly and 

23 substantially related to air transportation of pas24 sengers or property and that is available for public 

25 use.’’. 


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1 (b) INCREASE IN PFC MAXIMUM LEVEL.—Section 

2 40117(b) is amended— 

3 (1) by striking ‘‘fee’’ each place it appears and 

4 inserting ‘‘charge’’; 

5 (2) by striking ‘‘The Secretary of Transpor6 tation may authorize under this section an eligible 

7 agency to’’in paragraph (1) and inserting ‘‘An eligi8 ble agency may’’; 

9 (3) by striking ‘‘or $3’’ in paragraph (1) and 

10 inserting ‘‘$3, $4, $4.50, $5, or $6’’; 

11 (4) by inserting after ‘‘controls.’’ in paragraph 

12 (1) ‘‘An eligible agency that is approved by the Ad13 ministrator to participate in the pilot program estab14 lished under section 44518 of this title may impose 

15 a passenger facility charge of $7.’’; 

16 (5) by inserting ‘‘directly or indirectly’’ in para17 graph (2) after ‘‘may not’’; and 

18 (6) by striking paragraphs (4), (5) and (6). 

19 (c) PASSENGER FACILITY CHARGE STREAM20 LINING.—Section 40117(c) is amended to read as follows: 

21 ‘‘(c) PROCEDURAL REQUIREMENTS FOR IMPOSITION

22 OF PASSENGER FACILITY CHARGE.— 

23 ‘‘(1) IN GENERAL.—An eligible agency must 

24 submit to those air carriers and foreign air carriers 

25 operating at the airport with a significant business 


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1 interest, as defined in paragraph (3), and to the 

2 Secretary and make available to the public annually 

3 a report, in the form required by the Secretary, on 

4 the status of the eligible agency’s passenger facility 

5 fee program, including— 

6 ‘‘(A) the total amount of program revenue 

7 held by the agency at the beginning of the 12 

8 months covered by the report; 

9 ‘‘(B) the total amount of program revenue 

10 collected by the agency during the period cov11 ered by the report; 

12 ‘‘(C) the amount of expenditures with pro13 gram revenue made by the agency on each eligi14 ble airport-related project during the period 

15 covered by the report; 

16 ‘‘(D) each airport-related project for which 

17 the agency plans to collect and use program 

18 revenue during the next 12-month period cov19 ered by the report, including the amount of rev20 enue projected to be used for such project; 

21 ‘‘(E) the level of program revenue the 

22 agency plans to collect during the next 12- 

23 month period covered by the report; 

24 ‘‘(F) a description of the notice and con25 sultation process with air carriers and foreign 


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1 air carriers under paragraph (3), and with the 

2 public under paragraph (4), including a copies 

3 of any adverse comments received and how the 

4 agency responded; and 

5 ‘‘(G) any other information on the pro6 gram that the Secretary may require. 

7 ‘‘(2) IMPLEMENTATION.—Subject to the re8 quirements of paragraphs (3) and (4), (5), and (6), 

9 the eligible agency may implement the planned col10 lection and use of passenger facility charges in ac11 cordance with its report upon filing the report as re12 quired in paragraph (1). 

13 ‘‘(3) CONSULTATION WITH CARRIERS FOR NEW

14 PROJECTS.— 

15 ‘‘(A) An eligible agency proposing to col16 lect or use passenger facility charge revenue for 

17 a project not previously approved by the Sec18 retary or not included in a report required by 

19 paragraph (1) that was submitted in a prior 

20 year, or an eligible agency proposing to increase 

21 the level of the passenger facility charge to be 

22 collected at the airport, must provide to air car23 riers and foreign air carriers operating at the 

24 airport reasonable notice, and an opportunity to 

25 comment on the planned collection and use of 


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1 program revenue before providing the report re2 quired under paragraph (1). The Secretary 

3 shall prescribe by regulation what constitutes 

4 reasonable notice under this paragraph, which 

5 shall at a minimum include— 

6 ‘‘(i) that the eligible agency provide to 

7 air carriers and foreign air carriers oper8 ating at the airport written notice of the 

9 planned collection and use of passenger fa10 cility charge revenue; 

11 ‘‘(ii) that the notice include a full de12 scription and justification for a proposed 

13 project; 

14 ‘‘(iii) a detailed financial plan for the 

15 proposed project; and 

16 ‘‘(iv) the proposed level for the pas17 senger facility charge. 

18 ‘‘(B) An eligible agency providing notice 

19 and an opportunity for comment shall be 

20 deemed to have satisfied the requirements of 

21 this paragraph if the eligible agency provides 

22 such notice to air carriers and foreign air car23 riers that have a significant business interest at 

24 the airport. For purposes of this subparagraph, 


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1 the term ‘significant business interest’ means 

2 an air carrier or foreign air carrier that— 

3 ‘‘(i) had not less than 1.0 percent of 

4 passenger boardings at the airport in the 

5 prior calendar year; 

6 ‘‘(ii) had at least 25,000 passenger 

7 boardings at the airport in the prior cal8 endar year; or 

9 ‘‘(iii) provides scheduled service at the 

10 airport. 

11 ‘‘(C) Not later than 45 days after written 

12 notice is provided under subparagraph (A), 

13 each air carrier and foreign air carrier may pro14 vide written comments to the eligible agency in15 dicating its agreement or disagreement with the 

16 project or, if applicable, the proposed level for 

17 a passenger facility charge. 

18 ‘‘(D) The eligible agency may include, as 

19 part of the notice and comment process, a con20 sultation meeting to discuss the proposed 

21 project or, if applicable, the proposed level for 

22 a passenger facility charge. If the agency pro23 vides a consultation meeting, the written com24 ments specified in subparagraph (C) shall be 

25 due not later than 30 days after the meeting. 


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1 ‘‘(4) PUBLIC NOTICE AND COMMENT.— 

2 ‘‘(A) An eligible agency proposing to col3 lect or use passenger facility charge revenue for 

4 a project not previously approved by the Sec5 retary or not included in a report required by 

6 paragraph (1) that was filed in a prior year, or 

7 an eligible agency proposing to increase the 

8 level of the passenger facility charge to be col9 lected, must provide reasonable notice and an 

10 opportunity for public comment on the planned 

11 collection and use of program revenue before 

12 providing the report required in paragraph (1). 

13 ‘‘(B) The Secretary shall prescribe by reg14 ulation what constitutes reasonable notice under 

15 this paragraph, which shall at a minimum re16 quire— 

17 ‘‘(i) that the eligible agency provide 

18 public notice of intent to collect a pas19 senger facility charge so as to inform those 

20 interested persons and agencies that may 

21 be affected; 

22 ‘‘(ii) appropriate methods of publica23 tion, which may include notice in local 

24 newspapers of general circulation or other 


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1 local media, or posting of the notice on the 

2 agency’s internet website; and 

3 ‘‘(iii) submission of public comments 

4 no later than 45 days after the date of the 

5 publication of the notice. 

6 ‘‘(5) OBJECTIONS.— 

7 ‘‘(A) Any interested person may file with 

8 the Secretary a written objection to a proposed 

9 project or to a proposed increase in the level of 

10 a passenger facility charge included in a notice 

11 under this paragraph provided that the filing is 

12 made within 30 days after submission of the re13 port specified in paragraph (1). 

14 ‘‘(B) The Secretary shall provide not less 

15 than 30 days for the eligible agency to respond 

16 to any filed objection. 

17 ‘‘(C) Not later than 90 days after receiving 

18 the eligible agency’s response to a filed objec19 tion, the Secretary shall make a determination 

20 whether or not to terminate authority to collect 

21 the passenger facility charge for the project or 

22 at the increased level, based on the filed objec23 tion. The Secretary shall state the reasons for 

24 any determination. The Secretary may only ter25 minate authority if— 


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1 ‘‘(i) the project is not an eligible air2 port related project; 

3 ‘‘(ii) the eligible agency has not com4 plied with the requirements of this section 

5 or the Secretary’s implementing regula6 tions in proposing the project; 

7 ‘‘(iii) the eligible agency has been 

8 found to be in violation of section 

9 47107(b) of this title and has failed to 

10 take corrective action, prior to the filing of 

11 the objection; or 

12 ‘‘(iv) in the case of a proposed in13 crease in the passenger facility charge 

14 level, the level is not authorized by this 

15 section. 

16 ‘‘(D) Upon issuance of a decision termi17 nating authority, the public agency shall pre18 pare an accounting of passenger facility revenue 

19 collected under the terminated authority and re20 store the funds for use on other authorized 

21 projects. 

22 ‘‘(E) Except as provided in subparagraph 

23 (C), the eligible agency may implement the 

24 planned collection and use of a passenger facil25 ity charge in accordance with its report upon 


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1 filing the report as specified in paragraph 

2 (1)(A). 

3 ‘‘(6) APPROVAL REQUIREMENT FOR INTER4 MODAL GROUND ACCESS PROJECT.— 

5 ‘‘(A) An eligible agency may not collect or 

6 use a passenger facility charge to finance an 

7 intermodal ground access project, unless the 

8 project is first approved by the Secretary in ac9 cordance with this paragraph. 

10 ‘‘(B) The eligible agency may submit to 

11 the Secretary an application for authority to 

12 impose a passenger facility charge for an inter13 modal ground access project. The application 

14 shall contain information and be in the form 

15 that the Secretary may require by regulation 

16 but, at a minimum, must include copies of any 

17 comments received by the agency during the 

18 comment period described by subparagraph (C). 

19 ‘‘(C) Before submitting an application 

20 under this paragraph, an eligible agency must 

21 provide air carriers and foreign air carriers op22 erating at the airport, and the public, reason23 able notice of and an opportunity to comment 

24 on a proposed intermodal ground access project. 

25 Such notice and opportunity to comment shall 


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1 conform to the requirements of paragraphs (3) 

2 and (4). 

3 ‘‘(D) After receiving an application, the 

4 Secretary may provide air carriers, foreign air 

5 carriers and other interested persons notice and 

6 an opportunity to comment on the application. 

7 The Secretary shall make a final decision on 

8 the application not later than 120 days after re9 ceiving it.’’. 

10 (d) CONFORMING AMENDMENTS.— 

11 (1) CORRECTION.—Subsections (d) through (m) 

12 of section 40117 are amended— 

13 (A) by striking ‘‘fee’’ or ‘‘fees’’ each place 

14 it appears and inserting ‘‘charge’’ or ‘‘charges’’, 

15 respectively; and 

16 (B) striking ‘‘FEE’’ in the subsection cap17 tion for subsection (l), and ‘‘FEES’’ in the sub18 section captions for subsections (e) and (m), 

19 and inserting ‘‘CHARGE’’ and ‘‘CHARGES’’, re20 spectively. 

21 (2) LIMITATIONS ON APPROVING APPLICA22 TIONS.—Section 40117(d) is amended— 

23 (A) by striking ‘‘subsection (c) of this sec24 tion to finance a specific’’ and inserting ‘‘subVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 section (c)(6) of this section to finance an inter2 modal ground access’’; 

3 (B) by striking ‘‘fee’’ in paragraph (1) and 

4 inserting ‘‘charge’’; 

5 (C) by striking ‘‘specific’’ in paragraph 

6 (1); 

7 (D) by striking paragraph (2) and insert8 ing the following: 

9 ‘‘(2) the project is an eligible airport-related 

10 project; and’’; 

11 (E) by striking ‘‘each of the specific 

12 projects; and’’ in paragraph (3) and inserting 

13 ‘‘the project.’’; and 

14 (F) by striking paragraph (4). 

15 (3) LIMITATIONS ON IMPOSING FEES.—Section 

16 40117(e)(1) is amended to read as follows: ‘‘(1) An 

17 eligible agency may impose a passenger facility 

18 charge only subject to terms the Secretary may pre19 scribe to carry out the objectives of this section.’’. 

20 (4) LIMITATIONS ON CONTRACTS, LEASES, AND

21 USE AGREEMENTS.—Section 40117(f)(2) is amend22 ed— 

23 (A) by striking ‘‘long-term’’; and 

24 (B) by striking ‘‘Secretary.’’ and inserting 

25 ‘‘Secretary, except a project for replacement of 


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1 baggage conveyor systems and reconfiguration 

2 of terminal baggage areas that the Secretary 

3 determines are necessary to install bulk explo4 sive detection devices.’’. 

5 (5) COMPLIANCE.—Section 40117(h) is amend6 ed— 

7 (A) by redesignating paragraph (3) as 

8 paragraph (4); and 

9 (B) by inserting after paragraph (2) the 

10 following: 

11 ‘‘(3) The Secretary may, on complaint of an in12 terested person or on the Secretary’s own initiative, 

13 conduct an investigation into an eligible agency’s col14 lection and use of passenger facility charge revenue 

15 to determine whether a passenger facility charge is 

16 excessive or that passenger facility revenue is not 

17 being used as provided in this section. The Secretary 

18 shall prescribe regulations establishing procedures 

19 for complaints and investigations. The regulations 

20 may provide for the issuance of a final agency deci21 sion without resort to an oral evidentiary hearing. 

22 The Secretary shall not accept complaints filed 

23 under this paragraph until after the issuance of reg24 ulations establishing complaint procedures.’’. 


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1 (6) PILOT PROGRAM FOR PFC AT NONHUB AIR2 PORTS.—Section 40117(l) is amended— 

3 (A) by striking ‘‘(c)(2)’’ in paragraph (2) 

4 and inserting ‘‘(c)(3)’’; and 

5 (B) by striking ‘‘date that is 3 years after 

6 the date of issuance of regulations to carry out 

7 this subsection.’’in paragraph (7) and inserting 

8 ‘‘date of issuance of regulations to carry out 

9 subsection (c) of this section, as amended by 

10 the Next Generation Air Transportation System 

11 Financing Reform Act of 2007.’’. 

12 (7) PROHIBITION ON APPROVING PFC APPLICA13 TIONS FOR AIRPORT REVENUE DIVERSION.—Section 

14 47111(e) is amended in the first sentence by strik15 ing ‘‘sponsor’’ the first place it appears and all that 

16 follows and inserting ‘‘sponsor. A sponsor shall not 

17 propose collection or use of passenger facility 

18 charges for any new projects under paragraphs (3) 

19 through (6) of section 40117(c) unless the Secretary 

20 determines that the sponsor has taken corrective ac21 tion to address the violation and the violation no 

22 longer exists.’’. 

23 SEC. 302. AMENDMENTS TO AIP DEFINITIONS. 

24 Section 47102 is amended— 


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1 (1) by striking ‘‘20’’ in paragraph (3)(B)(iv) 

2 and inserting ‘‘9’’; 

3 (2) by adding at the end of paragraph (3) the 

4 following: 

5 ‘‘(M) construction of mobile refueler park6 ing within a fuel farm at a nonprimary airport 

7 meeting the requirements of section 112.8 of 

8 title 40 of the Code of Federal Regulations; 

9 ‘‘(N) terminal development subject to the 

10 provisions of section 47119.’’; 

11 (3) by redesignating paragraphs (8) through 

12 (25) as paragraphs (9) through (26), respectively 

13 and inserting the following after paragraph (7): 

14 ‘‘(8) a ‘general aviation airport’ means a public 

15 airport in a State that the Secretary determines— 

16 ‘‘(A) does not have scheduled service; or 

17 ‘‘(B) has scheduled service with less than 

18 2,500 passenger boardings each year;’’; 

19 (4) by redesignating paragraphs (24), (25), and 

20 (26) (as redesignated) as paragraph (25) through 

21 (27), respectively, and inserting the following after 

22 paragraph (23): 

23 ‘‘(24) ‘revenue producing aeronautical support 

24 facilities’ means new fuel farms, new hangar build25 ings, self-service credit card aeronautical fueling sysVerDate Aug 31 2005 22:54 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tems, airplane wash racks, major rehabilitation of a 

2 hangar owned by a sponsor, or other aeronautical 

3 support facilities that the Secretary determines will 

4 increase the revenue producing ability of the air5 port.’’; and 

6 (5) by adding at the end thereof the following: 

7 ‘‘(28) ‘terminal development’ means— 

8 ‘‘(A) development of an airport passenger 

9 terminal building, including terminal gates, ac10 cess roads servicing exclusively airport traffic 

11 that leads directly to or from a terminal build12 ing, and walkways that lead directly to or from 

13 a terminal building; and 

14 ‘‘(B) the cost of a vehicle under section 

15 47119(a) of this title.’’. 

16 SEC. 303. AMENDMENTS TO GRANT ASSURANCES. 

17 Section 47107 is amended— 

18 (1) by striking ‘‘made;’’ in subsection 

19 (a)(16)(D)(ii) and inserting ‘‘made, except that, if 

20 there is a change in airport design standards that 

21 the Secretary determines is beyond the owner or op22 erator’s control that requires the relocation or re23 placement of an existing airport facility, the Sec24 retary, upon the request of the owner or operator, 

25 may grant funds available under section 47114 to 


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1 pay the cost of relocating or replacing such facil2 ity;’’; 

3 (2) by striking ‘‘paid to the Secretary for de4 posit in the Fund if another eligible project does not 

5 exist.’’ in subsection (c)(2)(A)(iii) and inserting ‘‘re6 invested in another project at the airport or trans7 ferred to another airport as the Secretary pre8 scribes.’’; 

9 (3) by redesignating paragraph (3) of sub10 section (c) as paragraph (4) and inserting after 

11 paragraph (2) the following: 

12 ‘‘(3) In approving the reinvestment or transfer of 

13 proceeds under paragraph (2)(C)(iii), the Secretary shall 

14 give preference, in descending order, to— 

15 ‘‘(i) reinvestment in an approved noise compat16 ibility project; 

17 ‘‘(ii) reinvestment in an approved project that is 

18 eligible for funding under section 47117(e); 

19 ‘‘(iii) reinvestment in an airport development 

20 project that is eligible for funding under sections 

21 47114, 47115 or 47117 and meets the requirements 

22 of this chapter; 

23 ‘‘(iv) transfer to the sponsor of another public 

24 airport to be reinvested in an approved noise com25 patibility project at such airport; and 


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1 ‘‘(v) payment to the Secretary for deposit in the 

2 Airport and Airway Trust Fund established under 

3 section 9502 of the Internal Revenue Code of 1986 

4 (26 U.S.C. 9502).’’. 

5 SEC. 304. GOVERNMENT SHARE OF PROJECT COSTS. 

6 Section 47109 is amended— 

7 (1) by redesignating paragraphs (3), (4), and 

8 (5) of subsection (a) as paragraphs (4), (5), and (6), 

9 respectively; 

10 (2) by striking so much of subsection (a) as 

11 precedes paragraph (4), as redesignated, and insert12 ing the following: 

13 ‘‘(a) IN GENERAL.—Except as provided in subsection 

14 (b), (c) or (e) of this section, the United States Govern15 ment’s share of allowable project costs may not exceed— 

16 ‘‘(1) 50 percent for an airfield pavement reha17 bilitation project for runways, taxiways or aircraft 

18 aprons at a large hub or medium hub primary air19 port, as defined in section 47102; 

20 ‘‘(2) 75 percent for other approved airport de21 velopment projects at a large hub or medium hub 

22 primary airport, as defined in section 47102; 

23 ‘‘(3) 95 percent for a project funded by a grant 

24 issued to a nonprimary airport that is not appor25 tioned funds under section 47114 of this title;’’; 


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1 (3) by striking ‘‘47118(f)’’ in subsection (f) and 

2 inserting ‘‘47118(e)’’; and 

3 (4) by adding at the end the following: 

4 ‘‘(e) SPECIAL RULE FOR TRANSITION FROM SMALL

5 HUB TO MEDIUM HUB STATUS.—If the status of a small 

6 hub primary airport changes to a medium hub primary 

7 airport, the United States Government’s share of allow8 able project costs for the airport may not exceed 90 per9 cent for 2 fiscal years following such change in hub sta10 tus.’’. 

11 SEC. 305. AMENDMENTS TO ALLOWABLE COSTS. 

12 Section 47110 is amended— 

13 (1) by striking subsection (d) and inserting the 

14 following: 

15 ‘‘(d) RELOCATION OF AIRPORT-OWNED FACILI16 TIES.—The Secretary may determine that the costs of re17 locating or replacing an airport-owned facility are allow18 able for an airport development project at an airport only 

19 if— 

20 ‘‘(1) the Government’s share of such costs is 

21 paid with funds apportioned to the airport sponsor 

22 under sections 47114(c)(1) or 47114(d)(2); 

23 ‘‘(2) the Secretary determines that the reloca24 tion or replacement is required due to a change in 

25 the Secretary’s design standards; and 


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1 ‘‘(3) the Secretary determines that the change 

2 is beyond the control of the airport sponsor.’’; and 

3 (2) by striking ‘‘facilities, including fuel farms 

4 and hangars,’’ in subsection (h) and inserting ‘‘fa5 cilities, as defined by section 47102,’’. 

6 SEC. 306. SIMPLIFICATION AND REFORM OF APPORTION7 MENT FORMULAS. 

8 Section 47114 is amended— 

9 (1) by striking ‘‘primary airport’’ in subsection 

10 (c)(1)(A) and inserting ‘‘small hub and nonhub pri11 mary airport’’; 

12 (2) by striking ‘‘$7.80’’ in subsection 

13 (c)(1)(A)(i) and inserting ‘‘$15.60’’; 

14 (3) by striking ‘‘$5.20’’ in subsection 

15 (c)(1)(A)(ii) and inserting ‘‘$10.40’’; 

16 (4) by striking ‘‘$2.60’’ in subsection 

17 (c)(1)(A)(iii) and inserting ‘‘$5.20’’; 

18 (5) by striking ‘‘$.65’’ in subsection 

19 (c)(1)(A)(iv) and inserting ‘‘$1.30’’; 

20 (6) by striking ‘‘$.50’’ in subsection 

21 (c)(1)(A)(v) and inserting ‘‘$1.00’’; 

22 (7) by striking ‘‘$650,000’’in subsection 

23 (c)(1)(B) and all that follows through the end of the 

24 sentence and inserting ‘‘$1,000,000 nor more than 

25 $26,000,000 may be apportioned under subparaVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 graph (A) of this paragraph to an airport sponsor 

2 of each large hub and medium hub primary airport 

3 for fiscal years 2008 and 2009, and to each airport 

4 sponsor for a small hub and nonhub primary airport 

5 for each fiscal year.’’; 

6 (8) by striking subsection (c)(1)(C) and insert7 ing the following: 

8 ‘‘(C) TRANSITIONAL RULE FOR LARGE AND ME9 DIUM HUB AIRPORTS.—In fiscal years 2008 and 

10 2009, the Secretary shall apportion to each large 

11 and medium hub airport an amount equal to 50 per12 cent of the amount that is calculated using the for13 mulas set forth in subparagraph (A).’’; 

14 (9) by striking ‘‘(B) or (C), as appropriate,’’ in 

15 subsection (c)(1)(D) and inserting ‘‘(B)’’; 

16 (10) by striking subparagraph (F) of subsection 

17 (c)(1) and redesignating subparagraph (G) as sub18 paragraph (F); 

19 (11) by striking ‘‘(D),’’ in subsection (c)(2)(A) 

20 and inserting ‘‘(C),’’; 

21 (12) by striking subparagraph (C) in subsection 

22 (c)(2) and redesignating subparagraphs (D) and (E) 

23 as subparagraphs (C) and (D), respectively; 

24 (13) by striking ‘‘8.5 percent’’ in subsection 

25 (d)(2) and inserting ‘‘10 percent’’; 


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1 (14) by adding at the end of subsection (d)(2) 

2 the following: 

3 ‘‘(D) MINIMUM APPORTIONMENT.—In any fis4 cal year in which the total amount made available 

5 for apportionment under this subsection is less than 

6 $300,000,000, the Secretary shall reduce, on a pro7 rated basis, the amount to be apportioned under 

8 subparagraph (d)(3)(A) of this section, and make 

9 such reduction available to be apportioned under this 

10 subsection, so as to meet a minimum apportionment 

11 of $300,000,000.’’; 

12 (15) by striking subsection (d)(3) and inserting 

13 the following: 

14 ‘‘(3) NONPRIMARY AIRPORTS.— 

15 ‘‘(A) Except as provided in subsection (2)(D), 

16 the Secretary shall each fiscal year apportion— 

17 ‘‘(i) to each airport, excluding primary air18 ports but including reliever and nonprimary 

19 commercial service airports— 

20 ‘‘(I) $400,000 to each airport 

21 that is either a nonprimary commer22 cial service airport or a reliever or 

23 that is a nonprimary airport having 

24 100 or more operational registered 

25 based aircraft; 


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1 ‘‘(II) $200,000 to each airport 

2 that is a nonprimary airport (other 

3 than a nonprimary commercial service 

4 or reliever airport), having from 50 to 

5 99 operational registered based air6 craft, or 3 or more operational reg7 istered based jet aircraft; and 

8 ‘‘(III) $100,000 to each airport 

9 that is a nonprimary airport (other 

10 than a nonprimary commercial service 

11 airport or a reliever airport), and has 

12 from 10 to 49 operational, registered 

13 based aircraft. 

14 ‘‘(B) For purposes of subparagraph (A), the 

15 terms ‘operational registered based aircraft’ or 

16 ‘operational registered based jet aircraft’ have the 

17 meaning given such terms in the Federal Aviation 

18 Administration’s National Flight Data Center Air19 port Data Base or in a comparable, updated agency 

20 database.’’; 

21 (16) subsection (e)(1)(B) is amended by insert22 ing ‘‘twice’’ before ‘‘the minimum’’; 

23 (17) by striking subsection (e)(4); 

24 (18) by striking ‘‘in a fiscal year to the sponsor 

25 of an airport having at least .25 percent of the total 


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1 number of boardings each year in the United 

2 States’’ in subsection (f)(1) and inserting ‘‘in fiscal 

3 years 2008 and 2009 to a sponsor of a large hub or 

4 medium hub airport’’; 

5 (19) by striking ‘‘$3.00,’’ in subsection 

6 (f)(1)(B) and inserting ‘‘$3.00, but not more than 

7 $4.50,’’; 

8 (20) by adding at the end of subsection (f)(1) 

9 the following: 

10 ‘‘(C) in the case of a passenger facility charge 

11 of more than $4.50, 100 percent of the projected 

12 revenues from the charge in the fiscal year but not 

13 by more than 100 percent of the amount that other14 wise would be apportioned under this section.’’; 

15 (21) (D) by striking ‘‘fee’’ each place it appears 

16 in subsection (f) and inserting ‘‘charge’’; and 

17 (22) by adding at the end thereof the following: 

18 ‘‘(g) ENVIRONMENTAL SET-ASIDE.— 

19 ‘‘(1) The Secretary may apportion at least 8 

20 percent of the amount subject to apportionment for 

21 each fiscal year for grants for— 

22 ‘‘(A) airport noise compatibility planning 

23 under section 47505(a)(2); 

24 ‘‘(B) carrying out noise compatibility pro25 grams under section 47504(c); 


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1 ‘‘(C) noise mitigation projects approved in 

2 an environmental record of decision for an air3 port development project under this title; 

4 ‘‘(D) for compatible land use planning 

5 projects carried out by State and local govern6 ments under section 47141; 

7 ‘‘(E) for airport development described in 

8 section 47102(3)(F), 47102(3)(K), or 

9 47102(3)(L) to comply with the Clean Air Act 

10 (42 U.S.C. 7401 et seq.); 

11 ‘‘(F) for water quality mitigation projects 

12 to comply with the Clean Water Act (33 U.S.C. 

13 1251 et seq.) approved in an environmental 

14 record of decision for an airport development 

15 project under this title; and 

16 ‘‘(G) for carrying out an environmental 

17 mitigation demonstration project under section 

18 47143 of this title. 

19 ‘‘(2) The Secretary may count the amount of 

20 grants made for such planning and programs with 

21 funds apportioned under section 47114 in that fiscal 

22 year in determining whether or not such 8 percent 

23 requirement is being met in that fiscal year.’’. 


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1 SEC. 307. MINIMUM AMOUNT FOR THE DISCRETIONARY 

2 FUND. 

3 Section 47115(g)(1) is amended by striking from 

4 ‘‘sum of—’’ through ‘‘The amount’’ and inserting ‘‘sum 

5 of $520,000,000. The amount’’. 

6 SEC. 308. FUNDING OF SPACE TRANSPORTATION INFRA7 STRUCTURE GRANTS PROGRAM. 

8 Section 47115 is amended by adding at the end the 

9 following: 

10 ‘‘(k) FUNDING OF SPACE TRANSPORTATION INFRA11 STRUCTURE MATCHING GRANTS.—Notwithstanding any 

12 other provision of this chapter, from amounts made avail13 able under this section, the Secretary may issue a grant 

14 for a project under section 70301 of this title, provided 

15 that, in issuing such a grant, the Secretary shall follow 

16 the provisions of chapter 703 of this title. Not more than 

17 $10,000,000 per fiscal year shall be available for grants 

18 under this subsection.’’. 

19 SEC. 309. REPEAL OF SMALL AIRPORT FUND. 

20 Section 47116 is repealed. 

21 SEC. 310. CREATION OF NEW SMALL AIRPORT SET-ASIDE, 

22 AND REPEAL OF THE MILITARY AND RE23 LIEVER AIRPORT SET-ASIDES. 

24 Section 47117(e) is amended to read as follows: 

25 ‘‘(e) SMALL AIRPORT SET-ASIDE.—Each fiscal year, 

26 the Secretary shall provide at least 20 percent of the 


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1 amount available to the discretionary fund under section 

2 47115 of this title to sponsors of small hub airports, 

3 nonhub airports, nonprimary commercial service airports, 

4 reliever airports or general aviation airports, for any pur5 pose for which amounts are made available under section 

6 48103. An airport in a State participating in the State 

7 block grant program under section 47128 may receive a 

8 grant under this section to the same extent the airport 

9 may receive a grant if the State were not participating 

10 in such program.’’. 

11 SEC. 311. MILITARY AIRPORT PROGRAM. 

12 Section 47118 is amended— 

13 (1) by striking ‘‘section 47117(e)(1)(B)’’ in 

14 subsection (a) and inserting ‘‘section 47114(c)(1), 

15 (c)(2) and (d), 47115, or 47117(e)’’; 

16 (2) by striking subsection (c) and redesignating 

17 subsections (d) through (g) as subsections (c) 

18 through (f), respectively; 

19 (3) by striking ‘‘section 47117(d)(1)(B) of this 

20 title’’ in subsection (c), as redesignated, and insert21 ing ‘‘section 47114, 47115, or 47117 of this title for 

22 projects at airports designated under this section’’; 

23 (4) by striking ‘‘section 47115, $10,000,000 for 

24 each of fiscal years 2004 and 2005, and $7,000,000 

25 for each fiscal year thereafter,’’ in subsection (d), as 


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1 redesignated, and inserting ‘‘sections 47114, 47115, 

2 and 47117, $7,000,000 for each fiscal year,’’; 

3 (5) by striking ‘‘(1) CONSTRUCTION.—From’’ 

4 in subsection (e), as redesignated’’ and inserting 

5 ‘‘From’’; 

6 (6) by striking ‘‘section 47115, $10,000,000 for 

7 each of fiscal years 2004 and 2005, and $7,000,000 

8 for each fiscal year thereafter,’’ in subsection (e), as 

9 redesignated, and inserting ‘‘sections 47114, 47115 

10 and 47117, $7,000,000 for each fiscal year,’’; 

11 (7) by striking paragraph (2) of subsection (e), 

12 as redesignated; and 

13 (8) by striking ‘‘one’’ in subparagraph (f), as 

14 redesignated, and inserting ‘‘up to 3’’. 

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

16 Section 47133(b) is amended— 

17 (1) by resetting the text of the subsection as an 

18 indented paragraph 2 ems from the left margin; 

19 (2) by inserting ‘‘(1)’’ before ‘‘Subsection’’; and 

20 (3) by adding at the end thereof the following: 

21 ‘‘(2) In the case of a privately owned airport, 

22 subsection (a) shall not apply to the proceeds from 

23 the sale of the airport to a public sponsor if— 

24 ‘‘(A) the sale is approved by the Secretary; 


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1 ‘‘(B) funding is provided under this title 

2 for the public sponsor’s acquisition; and 

3 ‘‘(C) an amount equal to the remaining 

4 unamortized portion of the original grant, am5 ortized over a 20-year period, is repaid to the 

6 Secretary by the private owner for deposit in 

7 the Trust Fund for airport acquisitions. 

8 ‘‘(3) This subsection shall apply to grants 

9 issued on or after October 1, 1996.’’. 

10 SEC. 313. SUNSET OF AIRPORT SECURITY PROGRAM. 

11 Section 47137 is repealed effective September 30, 

12 2008. 

13 SEC. 314. SUNSET OF PILOT PROGRAM FOR PURCHASE OF 

14 AIRPORT DEVELOPMENT RIGHTS. 

15 Section 47138 is repealed effective September 30, 

16 2007. 

17 SEC. 315. EXTENSION OF GRANT AUTHORITY FOR COMPAT18 IBLE LAND USE PLANNING AND PROJECTS 

19 BY STATE AND LOCAL GOVERNMENTS. 

20 Section 47141(f) is amended by striking ‘‘September 

21 30, 2007.’’ and inserting ‘‘September 30, 2010.’’. 

22 SEC. 316. MIDWAY ISLAND AIRPORT. 

23 Section 186(d) of the Vision 100–Century of Aviation 

24 Reauthorization Act (17 Stat. 2518) is amended by strik25 ing ‘‘October 1, 2007,’’ and inserting ‘‘October 1, 2010,’’. 


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1 SEC. 317. PILOT PROGRAM FOR AIRPORT TAKEOVER OF 

2 AIR NAVIGATION FACILITIES. 

3 (a) IN GENERAL.—Chapter 445 is amended by add4 ing at the end the following new section: 

5 ‘‘§ 44518. Pilot program for airport takeover of ter6 minal area air navigation equipment 

7 ‘‘(a) IN GENERAL.—Subject to the requirements of 

8 this section, the Administrator of the Federal Aviation Ad9 ministrator may carry out a pilot program under which 

10 the Administrator may transfer ownership, operating and 

11 maintenance responsibilities for airport terminal area air 

12 navigation equipment to sponsors of not more than 10 me13 dium or large hub airports. 

14 ‘‘(b) TERMS AND CONDITIONS OF TRANSFER FOR

15 AIRPORT SPONSORS.—As a condition of participating in 

16 this pilot program the sponsor shall agree that the sponsor 

17 will— 

18 ‘‘(1) operate and maintain all of the air naviga19 tion equipment that is subject to this section at the 

20 airport in accordance with standards established by 

21 the Administrator; 

22 ‘‘(2) permit the Administrator or a person des23 ignated by the Administrator to conduct inspections 

24 of the air navigation equipment under a schedule es25 tablished by the Administrator; and 


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1 ‘‘(3) acquire and maintain new air navigation 

2 equipment as needed to replace facilities that have 

3 to be replaced at the end of their useful life or to 

4 meet new standards established by the Adminis5 trator. 

6 ‘‘(c) TERMS AND CONDITIONS OF TRANSFER FOR

7 THE ADMINISTRATOR.—When the Administrator approves 

8 a sponsor’s participation in this pilot program, the Admin9 istrator shall— 

10 ‘‘(1) transfer, at no cost to the sponsor, the 

11 title and ownership of the air navigation equipment 

12 facilities approved for transfer under this program; 

13 and 

14 ‘‘(2) transfer, at no cost to the sponsor, the 

15 government’s property interest in the land on which 

16 the air navigation facilities transferred under para17 graph (1) are located. 

18 ‘‘(d) TREATMENT OF AIRPORT COSTS UNDER PILOT

19 PROGRAM.—Upon transfer by the Administrator, any 

20 costs incurred by the airport for ownership and mainte21 nance of the equipment transferred under this section 

22 shall be considered a cost of providing airfield facilities 

23 and services under standards and guidelines issued by the 

24 Secretary under section 47129(b)(2) and may be recov25 ered in rates and charges assessed for use of the airfield. 


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1 ‘‘(e) SPECIAL PASSENGER FACILITY CHARGE AU2 THORITY.—Notwithstanding the maximum amount for a 

3 passenger facility charge provided under section 

4 40117(b)(1), a participating sponsor in the pilot program 

5 under this section is authorized to impose a passenger fa6 cility charge of $7 provided that the sponsor meets the 

7 otherwise applicable requirements of section 40117. 

8 ‘‘(f) DEFINITIONS.—In this section: 

9 ‘‘(1) LARGE HUB AIRPORT; MEDIUM HUB AIR10 PORT; SPONSOR.—The terms ‘large hub airport’, 

11 ‘medium hub airport’, and ‘sponsor’ have the mean12 ing given those terms in section 40102. 

13 ‘‘(2) TERMINAL AREA.—The term ‘terminal 

14 area air navigation equipment’ means an air naviga15 tion facility under section 40102, other than build16 ings used for air traffic control functions, that exists 

17 to provide approach and landing guidance to air18 craft. 

19 ‘‘(g) GUIDELINES.—The Administrator shall issue 

20 advisory guidelines on the implementation of the program. 

21 The guidelines shall not be subject to administrative rule22 making requirements under subchapter II of chapter 5 of 

23 title 5.’’. 


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1 (b) CONFORMING AMENDMENT.—The chapter anal2 ysis for chapter 445 is amended by inserting after the item 

3 relating to section 44517 the following: 

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

equipment.’’. 

4 SEC. 318. ADS–B SUPPORT PILOT PROGRAM. 

5 (a) IN GENERAL.—Chapter 445, as amended by sec6 tion 317, is amended by adding at the end the following: 

7 ‘‘§ 44519. ADS–B support pilot program 

8 ‘‘(a) IN GENERAL.—The Secretary may carry out a 

9 pilot program to support non-Federal acquisition of Na10 tional Airspace System compliant Automatic Dependant 

11 Surveillance-Broadcast (ADS–B) ground stations if— 

12 ‘‘(1) the Secretary determines that acquisition 

13 of the ground stations benefits the improvement of 

14 safety or capacity in the National Airspace System; 

15 ‘‘(2) the ground stations provide the required 

16 transmit and receive data formats consistent with 

17 the National Airspace System architecture at the ap18 propriate service delivery point; and 

19 ‘‘(3) the ground stations acquired under this 

20 program are supplemental to ground stations estab21 lished under programs administered by the Adminis22 trator of the Federal Aviation Administration. 

23 ‘‘(b) PROJECT GRANTS.— 


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1 ‘‘(1) For purposes of carrying out the pilot pro2 gram and notwithstanding the requirements of sec3 tion 47114(d), the Secretary may make a project 

4 grant out of funds apportioned under section 

5 47114(d)(2) to not more than 10 eligible sponsors to 

6 acquire and install ADS–B ground stations in order 

7 to serve any public-use airport. 

8 ‘‘(2) The Secretary shall establish procurement 

9 procedures applicable to grants issued under this 

10 section. The procedures shall permit the sponsor to 

11 carry out the project using Federal Aviation Admin12 istration contracts. The procedures established by 

13 the Secretary may provide for the direct reimburse14 ment (including administrative costs) of the Admin15 istrator by the sponsor using grant funds under this 

16 section, for the ordering of such equipment and its 

17 installation, or for the direct ordering of such equip18 ment and its installation by the sponsor, using such 

19 grant funds, from the suppliers with which the Ad20 ministrator has contracted. 

21 ‘‘(c) MATCHING REQUIREMENT.—The amount of a 

22 grant to an eligible sponsor under subsection (b) may not 

23 exceed 90 percent of the costs of the acquisition and in24 stallation of the ground support equipment. 

25 ‘‘(d) DEFINITIONS.—In this section: 


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1 ‘‘(1) ADS–B GROUND STATION.—The term 

2 ‘ADS–B ground station’ means electronic equipment 

3 that provides for ADS–B reception and broadcast 

4 services. 

5 ‘‘(2) ELIGIBLE SPONSOR.—The term ‘eligible 

6 sponsor’ means a State, a metropolitan planning or7 ganization in the area where the project is located, 

8 or any consortium of 2 or more State or local gov9 ernments meeting the definition of a sponsor under 

10 section 47102 of this title.’’. 

11 (b) CONFORMING AMENDMENT.—The chapter anal12 ysis for chapter 445 is amended by inserting after the item 

13 relating to section 44518 the following: 

‘‘44519. ADS–B support pilot program.’’. 

14 SEC. 319. AIP ELIGIBILITY FOR METROPOLITAN WASH15 INGTON AIRPORTS AUTHORITY. 

16 Section 49108 is amended by striking ‘‘October 1, 

17 2008,’’ and inserting ‘‘October 1, 2010,’’. 

18 SEC. 320. MISCELLANEOUS AMENDMENTS. 

19 (a) TECHNICAL CHANGES TO NATIONAL PLAN OF

20 INTEGRATED AIRPORT SYSTEMS.—Section 47103 is 

21 amended— 

22 (1) by striking ‘‘each airport to—’’ in sub23 section (a) and inserting ‘‘the airport system to—’’; 

24 (2) by striking ‘‘system in the particular area;’’ 

25 in subsection (a)(1) and inserting ‘‘system, including 


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1 connection to the surface transportation network; 

2 and’’; 

3 (3) by striking ‘‘aeronautics; and’’ in subsection 

4 (a)(2) and inserting ‘‘aeronautics.’’; 

5 (4) by striking subsection (a)(3); 

6 (5) by striking paragraph (2) of subsection (b) 

7 and redesignating paragraph (3) as paragraph (2); 

8 (6) by striking ‘‘operations, Short Takeoff and 

9 Landing/Very Short Takeoff and Landing aircraft 

10 operations,’’ in subsection (b)(2), as redesignated 

11 and inserting ‘‘operations’’; and 

12 (7) by striking ‘‘status of the’’ in subsection 

13 (d). 

14 (b) CONFORMING CHANGE TO PROJECT GRANT

15 AGREEMENTS.—Section 47108(e)(3) is amended by strik16 ing ‘‘and the small airport fund’’. 

17 (c) UPDATE VETERANS PREFERENCE DEFINI18 TION.—Section 47112(c) is amended— 

19 (1) by striking ‘‘separated from’’ in paragraph 

20 (1)(B) and inserting ‘‘discharged or released from 

21 active duty in’’; 

22 (2) by adding at the end of paragraph (1) the 

23 following: 

24 ‘‘(C) ‘Afghanistan-Iraq war veteran’ means an 

25 individual who served on active duty, as defined by 


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1 section 101(21) of title 38, at any time in the armed 

2 forces for a period of more than 180 consecutive 

3 days, any part of which occurred during the period 

4 beginning on September 11, 2001, and ending on 

5 the date prescribed by Presidential proclamation or 

6 by law as the last date of Operation Iraqi Free7 dom.’’; and 

8 (3) by striking ‘‘veterans and’’ in paragraph (2) 

9 and inserting ‘‘veterans, Afghanistan-Iraq war vet10 erans, and’’. 

11 (d) CONSOLIDATION OF TERMINAL DEVELOPMENT

12 PROVISIONS.—Section 47119 is amended— 

13 (1) by redesignating subsections (a), (b), (c), 

14 and (d) as subsections (b), (c), (d), and (e) respec15 tively, and by inserting the following before sub16 section (b), as redesignated: 

17 ‘‘(a) IN GENERAL.— 

18 ‘‘(1) The Secretary may approve a project for 

19 terminal development (including multimodal terminal 

20 development) in a nonrevenue-producing public-use 

21 area of a commercial service airport— 

22 ‘‘(A) if the sponsor certifies that the air23 port, on the date the grant application is sub24 mitted to the Secretary, has— 


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1 ‘‘(i) all the safety equipment required 

2 for certification of the airport under sec3 tion 44706 of this title; 

4 ‘‘(ii) all the security equipment re5 quired by regulation;and 

6 ‘‘(iii) provided for access, to the area 

7 of the airport for passengers for boarding 

8 or exiting aircraft, to those passengers 

9 boarding or exiting aircraft, except air car10 rier aircraft; 

11 ‘‘(B) if the cost is directly related to mov12 ing passengers andbaggage in air commerce 

13 within the airport, including vehicles for moving 

14 passengers between terminal facilities and be15 tween terminal facilities and aircraft; and 

16 ‘‘(C) under terms necessary to protect the 

17 interests of the Government. 

18 ‘‘(2) In making a decision under paragraph (1) 

19 of this subsection, the Secretary may approve as al20 lowable costs the expenses of terminal development 

21 in a revenue-producing area and construction, recon22 struction, repair, and improvement in a nonrevenue23 producing parking lot if— 

24 ‘‘(A) except as provided in section 

25 47108(e)(3), the airport does not have more 


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1 than .05 percent of the total annual passenger 

2 boardings in the United States; and 

3 ‘‘(B) the sponsor certifies that any needed 

4 airport development project affecting safety, se5 curity, or capacity will not be deferred because 

6 of the Secretary’s approval.’’; 

7 (2) by striking ‘‘section 47110(d)’’ in para8 graph (4)(A) of subsection (b), as redesignated, and 

9 inserting ‘‘subsection (a)’’; 

10 (3) by striking ‘‘subsection (b)(1) and (2)’’ in 

11 paragraph (5) of subsection (b), as redesignated, 

12 and inserting ‘‘subsections (c)(1) and (2)’’; and 

13 (4) by adding at the end thereof the following: 

14 ‘‘(f) LIMITATION ON DISCRETIONARY FUNDS.—The 

15 Secretary may distribute not more than $20,000,000 from 

16 the discretionary fund established under section 47115 of 

17 this title for terminal development projects at a nonhub 

18 airport or a small hub primary airport that is eligible to 

19 receive discretionary funds under section 47108(e)(3) of 

20 this title.’’. 

21 (e) ANNUAL REPORT.—Section 47131(a) is amend22 ed— 

23 (1) by striking ‘‘April 1’’ and inserting ‘‘June 

24 1’’; and 


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1 (2) by revising paragraphs (1), (2), (3), and (4) 

2 to read as follows: 

3 ‘‘(1) a summary of airport development and 

4 planning completed; 

5 ‘‘(2) a summary of individual grants issued; 

6 ‘‘(3) an accounting of discretionary and appor7 tioned funds allocated; 

8 ‘‘(4) the allocation of appropriations; and’’. 

9 (f) CORRECTION TO EMISSION CREDITS PROVI10 SION.—Section 47139 is amended— 

11 (1) by striking ‘‘47102(3)(F),’’ in subsection 

12 (a); 

13 (2) by striking ‘‘47102(3)(F),’’ in subsection 

14 (b); 

15 (3) by striking ‘‘47102(3)(L), or 47140’’ in 

16 subsection (b) and inserting ‘‘or 47102(3)(L),’’; 

17 (4) by striking ‘‘47103(3)(F), in subsection (b); 

18 and 

19 (5) by striking ‘‘47102(3)(L), or 47140,’’ in 

20 subsection (b) and inserting ‘‘or 47102(3)(L),’’. 

21 (g) REPEAL OF AIRPORT GROUND SUPPORT EQUIP22 MENT EMISSIONS RETROFIT PILOT PROGRAM.—Section 

23 47140 is repealed. 

24 (h) CORRECTION TO SURPLUS PROPERTY AUTHOR25 ITY.—Section 47151(e) is amended by striking ‘‘(other 


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1 than real property that is subject to section 2687 of title 

2 10, section 201 of the Defense Authorization Amendments 

3 and Base Closure and Realignment Act (10 U.S.C. 2687 

4 note), or section 2905 of the Defense Base Closure and 

5 Realignment Act of 1990 (10 U.S.C. 2687 note)’’. 

6 (i) AIRPORT CAPACITY BENCHMARK REPORTS; DEFI7 NITION OF JOINT USE AIRPORT.—Section 47175 is 

8 amended— 

9 (1) by striking ‘‘Airport Capacity Benchmark 

10 Report 2001.’’ in paragraph (2) and inserting ‘‘2001 

11 and 2004 Airport Capacity Benchmark Reports or 

12 of the most recent Benchmark report.’’; and 

13 (2) by adding at the end thereof the following: 

14 ‘‘(7) JOINT USE AIRPORT.—The term ‘joint use 

15 airport’ means an airport owned by the United 

16 States Department of Defense, at which both mili17 tary and civilian aircraft make shared use of the air18 field.’’. 

19 (j) CONFORMING AMENDMENT TO CIVIL PENALTY

20 ASSESSMENT AUTHORITY.—Section 46301(d)(2) is 

21 amended by striking ‘‘46318,’’ and inserting ‘‘46318, 

22 46319’’. 

23 (k) FUNDING FOR ADMINISTRATIVE EXPENSES FOR

24 AIRPORT PROGRAMS.— 


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1 (1) Section 48105 is amended to read as fol2 lows: 

3 ‘‘§ 48105. Airport programs administrative expenses 

4 ‘‘Of the amount newly made available, the following 

5 shall be available for administrative expenses relating to 

6 the Airport Improvement Program, passenger facility fee 

7 approval and oversight, national airport system planning, 

8 airport standards development and enforcement, airport 

9 certification, airport-related environmental activities (in10 cluding legal services), and other airport-related activities 

11 (including airport technology research), to remain avail12 able until expended— 

13 ‘‘(1) for fiscal year 2008, $80,676,000; 

14 ‘‘(2) for fiscal year 2009, $85,000,000; and 

15 ‘‘(3) for fiscal year 2010, $89,000,000.’’. 

16 (2) CONFORMING AMENDMENTS.—The chapter 

17 analysis for chapter 481 is amended by striking the 

18 item relating to section 48105 and inserting the fol19 lowing: 

‘‘48105. Airport programs administrative expenses.’’. 

20 TITLE IV—MANAGEMENT AND 

21 ORGANIZATION REFORMS 

22 SEC. 401. AIR TRANSPORTATION SYSTEM ADVISORY 

23 BOARD. 

24 Section 106(p) is amended to read as follows: 


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1 ‘‘(p) AIR TRANSPORTATION SYSTEM ADVISORY

2 BOARD.— 

3 ‘‘(1) ESTABLISHMENT.—The Secretary shall es4 tablish an advisory Board which shall be known as 

5 the Air Transportation System Advisory Board. 

6 ‘‘(2) M.—The Board shall be comprised of 13 

7 members, who shall consist of— 

8 ‘‘(A) the Administrator of the Federal 

9 Aviation Administration and a representative 

10 from the Department of Defense; 

11 ‘‘(B) 3 members who shall have a fiduciary 

12 responsibility to represent the public interest; 

13 and 

14 ‘‘(C) 8 members representing aviation in15 terests, as follows: 

16 ‘‘(i) 1 representative of the airport 

17 community; 

18 ‘‘(ii) 1 representative each of major 

19 air carriers (Carrier Group I), national air 

20 carriers (Carrier Group II), and the re21 gional air carriers (Carrier Group III), as 

22 previously defined by the Secretary of 

23 Transportation under section 4, part 241 

24 of title 49 of the Code of Federal Regula25 tions; 


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1 ‘‘(iii) 1 representative of the cargo 

2 airlines; 

3 ‘‘(iv) 1 representative of the general 

4 aviation community; 

5 ‘‘(v) 1 representative of the business 

6 aviation community; and 

7 ‘‘(vi) 1 representative of the aviation 

8 manufacturing community. 

9 ‘‘(3) APPOINTMENT AND QUALIFICATIONS.— 

10 ‘‘(A) Members of the Board appointed 

11 under paragraphs (2)(B) and (2)(C) shall be 

12 appointed by the Secretary and shall not be 

13 considered to be employees of the Federal gov14 ernment. 

15 ‘‘(B) Members of the Board appointed 

16 under paragraph (2)(B) shall be citizens of the 

17 United States, and it is recommended that they 

18 shall be appointed without regard to political 

19 affiliation and solely on the basis of their pro20 fessional experience and expertise in one or 

21 more of the following areas and, in the aggre22 gate, should collectively bring to bear expertise 

23 in the following areas: 

24 ‘‘(i) management of large service or25 ganizations. 


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1 ‘‘(ii) customer service. 

2 ‘‘(iii) management of large procure3 ments. 

4 ‘‘(iv) information and communications 

5 technology. 

6 ‘‘(v) organizational development. 

7 ‘‘(vi) labor relations. 

8 ‘‘(4) FUNCTIONS.— 

9 ‘‘(A) IN GENERAL.—The Board shall— 

10 ‘‘(i) review and provide advice on the 

11 Administration’s safety programs, budget, 

12 and cost accounting system; 

13 ‘‘(ii) review the Administration’s stra14 tegic plan and make recommendations on 

15 the non-safety program portions of the 

16 plan, and provide advice on the safety pro17 grams of the plan; 

18 ‘‘(iii) review the operational efficiency 

19 of the air traffic control system and make 

20 recommendations on the operational and 

21 performance metrics for that system; 

22 ‘‘(iv) review and make recommenda23 tions on the Administration’s plan for 

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1 penditures for a project of $100,000,000 

2 or more related to the system; 

3 ‘‘(v) make recommendations of the 

4 type and level of fees to be established by 

5 the Administration under sections 45305 

6 and 45306 and for any adjustments to 

7 those fees in accordance with the proce8 dures established under those sections; and 

9 ‘‘(vi) provide advice on the Adminis10 trator’s selection of a Chief Operating Offi11 cer for the Air Traffic Organization and on 

12 the appointment and compensation of its 

13 managers. 

14 ‘‘(B) MEETINGS.—The Board shall meet 

15 on a regular and periodic basis or at the call of 

16 the Chairman or of the Administrator. 

17 ‘‘(C) ACCESS TO DOCUMENTS AND

18 STAFF.—The Administration may give the 

19 Board appropriate access to relevant documents 

20 and personnel of the Administration, and the 

21 Administrator shall make available, consistent 

22 with the authority to withhold commercial and 

23 other proprietary information under section 552 

24 of title 5, cost data associated with the acquisi25 tion and operation of air traffic control systems. 


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1 Any member of the Board who receives com2 mercial or other proprietary data from the Ad3 ministrator shall be subject to the provisions of 

4 section 1905 of title 18, pertaining to unauthor5 ized disclosure of such information. 

6 ‘‘(5) FEDERAL ADVISORY COMMITTEE ACT NOT

7 TO APPLY.—The Federal Advisory Committee Act (5 

8 U.S.C. App.) shall not apply to the Board or such 

9 rulemaking committees as the Administrator shall 

10 designate. 

11 ‘‘(6) ADMINISTRATIVE MATTERS.— 

12 ‘‘(A) TERMS OF MEMBERS.—Members of 

13 the Board appointed under paragraph (2)(B) 

14 and (2)(C) shall be appointed for a term of 3 

15 years. Of the members first appointed by the 

16 Secretary— 

17 ‘‘(i) 3 shall be appointed for terms of 

18 1 year; 

19 ‘‘(ii) 4 shall be appointed for terms of 

20 2 years; and 

21 ‘‘(iii) 4 shall be appointed for terms of 

22 3 years. 

23 ‘‘(B) REAPPOINTMENT.—No individual 

24 may be appointed to the Board for more than 

25 6 years total. 


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1 ‘‘(C) VACANCY.—Any vacancy on the 

2 Board shall be filled in the same manner as the 

3 original position. Any member appointed to fill 

4 a vacancy occurring before the expiration of the 

5 term for which the member’s predecessor was 

6 appointed shall be appointed for the remainder 

7 of that term. 

8 ‘‘(D) CONTINUATION IN OFFICE.—A mem9 ber of the Board whose term expires shall con10 tinue to serve until the date on which the mem11 ber’s successor takes office. 

12 ‘‘(E) REMOVAL.—Any member of the 

13 Board appointed under paragraph (2)(B) or 

14 (2)(C) may be removed by the Secretary. 

15 ‘‘(F) CLAIMS AGAINST MEMBERS OF THE

16 BOARD.— 

17 ‘‘(i) IN GENERAL.—A member ap18 pointed to the Board shall have no per19 sonal liability under State or Federal law 

20 with respect to any claim arising out of or 

21 resulting from an act or omission by such 

22 member within the scope of service as a 

23 member of the Board. 

24 ‘‘(ii) EFFECT ON OTHER LAW.—This 

25 subparagraph shall not be construed— 


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1 ‘‘(I) to affect any other immunity 

2 or protection that may be available to 

3 a member of the Board under applica4 ble law with respect to such trans5 actions; 

6 ‘‘(II) to affect any other right or 

7 remedy against the United States 

8 under applicable law; or 

9 ‘‘(III) to limit or alter in any way 

10 the immunities that are available 

11 under applicable law for Federal offi12 cers and employees. 

13 ‘‘(G) ETHICAL CONSIDERATIONS.—Each 

14 member of the Board appointed under para15 graph (2)(B) must certify that he or she— 

16 ‘‘(i) does not have a pecuniary interest 

17 in, or own stock in or bonds of, an aviation 

18 or aeronautical enterprise, except an inter19 est in a diversified mutual fund or an in20 terest that is exempt from the application 

21 of section 208 of title 18; 

22 ‘‘(ii) does not engage in another busi23 ness related to aviation or aeronautics; or 

24 ‘‘(iii) is not a member of any organi25 zation that engages, as a substantial part 


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1 of its activities, in activities to influence 

2 aviation-related legislation. 

3 ‘‘(H) CHAIRMAN; VICE CHAIRMAN.—The 

4 Board shall elect a chair and a vice chair from 

5 among its members, each of whom shall serve 

6 for a term of 2 years. The vice chair shall per7 form the duties of the chairman in the absence 

8 of the chairman. 

9 ‘‘(I) COMPENSATION.—No member shall 

10 receive any compensation or other benefits from 

11 the Federal government for serving on the 

12 Board, except for compensation benefits for in13 juries under subchapter I of chapter 81 of title 

14 5, except as provided under subparagraph (J). 

15 ‘‘(J) EXPENSES.—Each member of the 

16 Board shall be paid actual travel expenses and 

17 per diem in lieu of subsistence expenses when 

18 away from his or her usual place of residence, 

19 in accordance with section 5703 of title 5. 

20 ‘‘(K) DETAIL OF PERSONNEL FROM THE

21 ADMINISTRATION.—The Administrator shall 

22 make available to the Board such staff, infor23 mation, and administrative services and assist24 ance as may reasonably be required to enable 


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1 the Board to carry out its responsibilities under 

2 this subsection. 

3 ‘‘(L) QUORUM AND VOTING.—A simple 

4 majority of members of the Board shall con5 stitute a quorum. A majority vote of members 

6 present and voting shall be required for the 

7 Committee to take action. 

8 ‘‘(7) ROLE OF THE ADMINISTRATOR AND THE

9 SECRETARY.—All actions and functions of the Board 

10 are subject to the approval or disapproval of the Ad11 ministrator and the Secretary. 

12 ‘‘(8) AIR TRAFFIC CONTROL SYSTEM DE13 FINED.—In this section, the term ‘air traffic control 

14 system’ has the meaning given that term in section 

15 40102(a).’’. 

16 SEC. 402. FACILITATION OF NEXT GENERATION AIR TRAF17 FIC SERVICES. 

18 Section 106(l) is amended by adding at the end the 

19 following: 

20 ‘‘(7) SERVICES BY PRIVATE SECTOR.—In deter21 mining what actions to take, by rule or through an 

22 agreement or transaction under paragraph (6) or 

23 under section 44502, to permit non-government pro24 viders of communications, navigation, surveillance or 

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1 tional Airspace System, or to require the usage of 

2 such services, the Administrator shall consider 

3 whether such actions would— 

4 ‘‘(A) promote the safety of life and prop5 erty; 

6 ‘‘(B) improve the efficiency of the National 

7 Airspace System and reduce the regulatory bur8 den upon National Airspace System users, 

9 based upon sound engineering principles, user 

10 operational requirements, and marketplace de11 mands; 

12 ‘‘(C) encourage competition and provide 

13 services to the largest feasible number of users; 

14 and 

15 ‘‘(D) take into account the unique role 

16 served by general aviation.’’. 

17 SEC. 403. CLARIFICATION OF AUTHORITY TO ENTER INTO 

18 REIMBURSABLE AGREEEMENTS. 

19 The last sentence of section 106(m) is amended by 

20 striking ‘‘without’’ and inserting ‘‘with or without’’. 

21 SEC. 404. DEFINITION OF AIR NAVIGATION FACILITY. 

22 Section 40102(a)(4) is amended— 

23 (1) by striking subparagraph (B) and inserting 

24 the following: 


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1 ‘‘(B) runway lighting and airport surface 

2 visual and other navigation aids;’’; 

3 (2) by striking ‘‘weather information, signaling, 

4 radio-directional finding, or radio or other electro5 magnetic communication; and’’ in subparagraph (C) 

6 and inserting ‘‘aeronautical and meteorological infor7 mation to air traffic control facilities or aircraft, 

8 supplying communication, navigation or surveillance 

9 equipment for air-to-ground or air-to-air applica10 tions;’’; 

11 (3) by striking ‘‘another structure’’ in subpara12 graph (D) and inserting ‘‘any structure or equip13 ment’’; 

14 (4) by striking ‘‘aircraft.’’ in subparagraph (D) 

15 and inserting ‘‘aircraft; and’’; and 

16 (5) by adding at the end the following: 

17 ‘‘(E) buildings, equipment and systems 

18 dedicated to the National Airspace System.’’. 

19 SEC. 405. IMPROVED MANAGEMENT OF PROPERTY INVEN20 TORY. 

21 Section 40110(a)(2) is amended by striking ‘‘com22 pensation; and’’ and inserting ‘‘compensation, and the 

23 amount received may be credited to the appropriation cur24 rent when the amount is received; and’’. 


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1 SEC. 406. CLARIFICATION TO ACQUISITION REFORM AU2 THORITY. 

3 Section 40110(c) is amended— 

4 (1) by inserting ‘‘and’’ after the semicolon in 

5 paragraph (3); 

6 (2) by striking paragraph (4); and 

7 (3) by redesignating paragraph (5) as para8 graph (4). 

9 SEC. 407. ASSISTANCE TO FOREIGN AVIATION AUTHORI10 TIES. 

11 Section 40113(e) is amended— 

12 (1) by inserting ‘‘(whether public or private)’’ 

13 in paragraph (1) after ‘‘authorities’’; 

14 (2) by striking ‘‘safety.’’ in paragraph (1) and 

15 inserting ‘‘safety or efficiency. The Administrator is 

16 authorized to participate in, and submit offers in re17 sponse to, competitions to provide these services, 

18 and to contract with foreign aviation authorities to 

19 provide these services consistent with the provisions 

20 under section 106(l)(6) of this title. The Adminis21 trator is also authorized, notwithstanding any other 

22 provision of law or policy, to accept payments in ar23 rears.’’; and 

24 (3) by striking ‘‘appropriation from which ex25 penses were incurred in providing such services.’’ in 

26 paragraph (3) and inserting ‘‘appropriation current 


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1 when the expenditures are or were paid, or the ap2 propriation current when the amount is received.’’. 

3 SEC. 408. PRESIDENTIAL RANK AWARD PROGRAM. 

4 Section 40122(g)(2) is amended— 

5 (1) by striking ‘‘and’’ after the semicolon in 

6 subparagraph (G); 

7 (2) by striking ‘‘Board.’’ in subparagraph (H) 

8 and inserting ‘‘Board;’’; and 

9 (3) by inserting at the end the following new 

10 subparagraph: 

11 ‘‘(I) subsections (b), (c), and (d) of section 

12 4507 (relating to Meritorious Executive or Dis13 tinguished Executive rank awards), and section 

14 subsections (b) and (c) of section 4507a (relat15 ing to Meritorious Senior Professional or Dis16 tinguished Senior Professional rank-awards), 

17 except that— 

18 ‘‘(i) for purposes of applying such 

19 provisions to the personnel management 

20 system— 

21 ‘‘(I) the term ‘agency’ means the 

22 Department of Transportation; 

23 ‘‘(II) the term ‘senior executive’ 

24 means an Federal Aviation Adminis25 tration executive; 


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1 ‘‘(III) the term ‘career appointee’ 

2 means an Federal Aviation Adminis3 tration career executive; and 

4 ‘‘(IV) the term ‘senior career em5 ployee’ means an Federal Aviation 

6 Administration career senior profes7 sional; 

8 ‘‘(ii) receipt by a career appointee of 

9 the rank of Meritorious Executive or Meri10 torious Senior Professional entitles such 

11 individual to a lump-sum payment of an 

12 amount equal to 20 percent of annual 

13 basic pay, which shall be in addition to the 

14 basic pay paid under the Federal Aviation 

15 Administration Executive Compensation 

16 Plan; and 

17 ‘‘(iii) receipt by a career appointee of 

18 the rank of Distinguished Executive or 

19 Distinguished Senior Professional entitles 

20 the individual to a lump-sum payment of 

21 an amount equal to 35 percent of annual 

22 basic pay, which shall be in addition to the 

23 basic pay paid under the Federal Aviation 

24 Administration Executive Compensation 

25 plan.’’. 


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1 SEC. 409. REALIGNMENT AND CONSOLIDATION OF AVIA2 TION FACILITIES AND SERVICES. 

3 (a) IN GENERAL.—Chapter 445, as amended by sec4 tion 318 of this Act, is amended by adding at the end 

5 the following new section: 

6 ‘‘§ 44520. Realignment and consolidation of aviation 

7 facilities and services 

8 ‘‘(a) PURPOSE.—The purpose of this section is to 

9 provide a fair process that will result in the realignment 

10 or consolidation of services and facilities of the Federal 

11 Aviation Administration to help reduce capital, operating, 

12 maintenance, and administrative costs with no adverse ef13 fect on safety. 

14 ‘‘(b) ESTABLISHMENT OF COMMISSION.— 

15 ‘‘(1) The Secretary may establish an inde16 pendent commission to be known as the ‘Realign17 ment and Consolidation of Aviation Facilities and 

18 Services Commission’. 

19 ‘‘(2) The Commission shall carry out the duties 

20 specified for it in this part. 

21 ‘‘(3) The Commission shall be composed of 5 

22 members appointed by the Secretary. Such members 

23 shall not be considered employees of the federal gov24 ernment. 

25 ‘‘(4) Members of the Commission shall be ap26 pointed for a term of 3 years. 


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1 ‘‘(5) The Commission shall elect a chair from 

2 among its members. 

3 ‘‘(6) A vacancy in the Commission shall be 

4 filled in the same manner as the original appoint5 ment but the individual appointed to fill the vacancy 

6 shall serve only for the unexpired portion of the 

7 term for which the individual’s predecessor was ap8 pointed. 

9 ‘‘(7) No member shall receive any compensation 

10 or other benefits from the Federal government for 

11 serving on the Commission, except for compensation 

12 benefits for injuries under subchapter I of chapter 

13 81 of title 5, except that each member of the Com14 mission shall be paid actual travel expenses and per 

15 diem in lieu of subsistence expenses when away from 

16 his or her usual place of residence in accordance 

17 with section 5703 of title 5. 

18 ‘‘(8) The Administrator of the Federal Aviation 

19 Administration shall make available to the Commis20 sion such staff, information, and administrative serv21 ices and assistance as may reasonably be required to 

22 enable the Commission to carry out its responsibil23 ities under this subsection. The Commission may 

24 employ experts or consultants on a temporary or 


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1 intermittent basis with the approval of the Sec2 retary. 

3 ‘‘(9) The Federal Advisory Committee Act (5 

4 U.S.C. App.) shall not apply to the Commission. 

5 ‘‘(c) FAA RECOMMENDATIONS FOR FACILITIES RE6 ALIGNMENT AND CONSOLIDATION.—Within 6 months 

7 after the establishment of the Commission by the Sec8 retary, the Administrator, after providing an opportunity 

9 for public comment, shall publish the final criteria to be 

10 used in making the Administrator’s recommendations for 

11 the realignment and consolidation of services and facilities 

12 under this section. On the basis of such final criteria, the 

13 Administrator shall publish in the Federal Register and 

14 transmit to the Commission a list of the services and fa15 cilities that the Administrator recommends for realign16 ment and consolidation including a justification for each 

17 recommendation. 

18 ‘‘(d) REVIEW AND RECOMMENDATIONS BY THE COM19 MISSION.— 

20 ‘‘(1) After receiving the recommendations from 

21 the Administrator pursuant to subsection (c), the 

22 Commission shall opportunity for public comment on 

23 such recommendations. 

24 ‘‘(2) Based on its review and analysis of the 

25 Administrator’s recommendations and any public 


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1 comment it may receive, the Commission shall make 

2 its independent recommendations to the President 

3 for realignment and consolidation of aviation serv4 ices or facilities. 

5 ‘‘(3) The Commission shall explain and justify 

6 in its report submitted to the President any rec7 ommendation made by the Commission that is dif8 ferent from the recommendations made by the Ad9 ministrator pursuant to subsection (c). The Commis10 sion shall transmit a copy of such report to the con11 gressional committees of interest on the same date 

12 on which it transmits its recommendations to the 

13 President under paragraph (2). 

14 ‘‘(e) REVIEW BY THE PRESIDENT.— 

15 ‘‘(1) The President shall transmit to the Com16 mission and to the Congress a report containing the 

17 President’s approval or disapproval of the Commis18 sion’s recommendations. 

19 ‘‘(2) If the President approves all the rec20 ommendations of the Commission, the President 

21 shall transmit a copy of such recommendations to 

22 the Congress, together with a certification of such 

23 approval. 

24 ‘‘(3) If the President disapproves the rec25 ommendations of the Commission, in whole or in 


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1 part, the President shall transmit to the Commission 

2 and the Congress the reasons for that disapproval. 

3 The Commission shall consider the President’s re4 port and may then transmit to the President a re5 vised list of recommendations for the realignment 

6 and consolidation of services and facilities. 

7 ‘‘(4) If the President approves all of the revised 

8 recommendations of the Commission transmitted to 

9 the President under paragraph (3), the President 

10 shall transmit a copy of such revised recommenda11 tions to the Congress, together with a certification 

12 of such approval. 

13 ‘‘(5) If the President does not transmit to the 

14 Congress an approval and certification, the process 

15 by which agency services and facilities may be se16 lected for realignment or consolidation under this 

17 section shall be terminated. 

18 ‘‘(f) REALIGNMENT AND CONSOLIDATION OF SERV19 ICES FACILITIES.—Subject to subsection (g), the Adminis20 trator shall— 

21 ‘‘(1) realign or consolidate all Federal Aviation 

22 Administration services and facilities recommended 

23 for realignment or consolidation by the Commission 

24 in the report transmitted to the Congress by the 

25 President pursuant to subsection (e)(2) or (4); 


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1 ‘‘(2) initiate all such realignments and consoli2 dations no later than 2 years after the date on which 

3 the President transmits a report to the Congress 

4 containing the recommendations for such realign5 ments or consolidations; and 

6 ‘‘(3) complete all such realignments and con7 solidations no later than the end of the 6-year period 

8 beginning on the date on which the President trans9 mits the report containing the recommendations for 

10 such realignments or consolidations. 

11 ‘‘(g) CONGRESSIONAL DISAPPROVAL.— 

12 ‘‘(1) The Administrator may not carry out any 

13 closure or realignment recommended by the Commis14 sion in a report transmitted from the President pur15 suant to subsection (e)(2) or (4) if a joint resolution 

16 is enacted, disapproving such recommendations of 

17 the Commission before the earlier of— 

18 ‘‘(A) the end of the 60-day period begin19 ning on the date on which the President trans20 mits such report; or 

21 ‘‘(B) the adjournment of Congress sine die 

22 for the session during which such report is 

23 transmitted. 

24 ‘‘(2) For purposes of paragraph (1)(A), the 

25 days on which either House of Congress is not in 


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1 session because of an adjournment of more than 3 

2 days to a day certain shall be excluded in the com3 putation of the 60 day period. 

4 ‘‘(g) AUTHORIZATION.— 

5 ‘‘(1) There are authorized to be appropriated to 

6 the Administrator such sums as may be necessary 

7 for the Commission to carry out its duties and for 

8 the Administrator to implement the realignment and 

9 consolidation of services and facilities as described in 

10 subsection (f). 

11 ‘‘(2) Amounts appropriated pursuant to para12 graph (1) shall remain available until expended. 

13 ‘‘(h) EFFECT ON OTHER AUTHORITIES.—Nothing in 

14 this section shall affect the authorities provided in section 

15 44503 or the existing authorities or responsibilities of the 

16 Administrator under this title to manage the operations 

17 of the Federal Aviation Administration, including realign18 ing or consolidating facilities or services. 

19 ‘‘(i) DEFINITIONS.—In this section: 

20 ‘‘(1) CONGRESSIONAL COMMITTEES OF INTER21 EST.—The term ‘congressional committees of inter22 est’ means the Senate Committee on Commerce, 

23 Science, and Transportation, the House of Rep24 resentatives Committee on Transportation and InVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 frastructure, and the Senate and House of Rep2 resentatives Committees on Appropriations. 

3 ‘‘(2) COMMISSION.—The term ‘Commission’ 

4 means the Commission established under subsection 

5 (b) of this section. 

6 ‘‘(3) REALIGNMENT.—The term ‘realignment’ 

7 includes any action which relocates functions and 

8 personnel positions but does not include a reduction 

9 in personnel resulting from workload adjustments.’’. 

10 (b) CONFORMING AMENDMENT.—The chapter anal11 ysis for chapter 455, as amended by section 318 of this 

12 Act, is amended by inserting after the item relating to sec13 tion 44519 the following: 

‘‘44520. Realignment and consolidation of aviation facilities and services.’’. 

14 SEC. 410. OPERATIONAL AND APPROACH PROCEDURES BY 

15 THIRD PARTIES THROUGH DELEGATION. 

16 Section 44701 is amended by adding at the end the 

17 following: 

18 ‘‘(g) DELEGATION.—Subject to any regulations, su19 pervision, and review that the Administrator may pre20 scribe, the Administrator may delegate to a qualified pri21 vate person, or to an employee under the supervision of 

22 that person, the development, testing and maintenance of 

23 flight procedures.’’. 


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1 SEC. 411. JUDICIAL REVIEW OF DENIAL OF AIRMAN CER2 TIFICATES. 

3 (a) JUDICIAL REVIEW OF NTSB DECISIONS.—Sec4 tion 44703(d) is amended by adding at the end the fol5 lowing: 

6 ‘‘(3) JUDICIAL REVIEW.—A person substantially af7 fected by an order of the Board under this subsection, or 

8 the Administrator when the Administrator decides that an 

9 order of the Board will have a significant adverse impact 

10 on carrying out this part, may obtain judicial review of 

11 the order under section 46110 of this title. The Adminis12 trator shall be made a party to the judicial review pro13 ceedings. The findings of fact of the Board in any such 

14 case are conclusive if supported by substantial evidence.’’. 

15 (b) CONFORMING AMENDMENT.—Section 1153(c) is 

16 amended by striking ‘‘section 44709 or’’ and inserting 

17 ‘‘section 44703(d), 44709, or’’. 

18 SEC. 412. RELEASE OF DATA RELATING TO ABANDONED 

19 TYPE CERTIFICATES AND SUPPLEMENTAL 

20 TYPE CERTIFICATES. 

21 Section 44704(a) is amended by adding at the end 

22 the following: 

23 ‘‘(5) RELEASE OF DATA.— 

24 ‘‘(A) Notwithstanding any other provision of 

25 law, the Administrator may designate, without the 

26 consent of the owner of record, engineering data in 


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1 the agency’s possession related to a type certificate 

2 or a supplemental type certificate for an aircraft, en3 gine, propeller or appliance, along with any associ4 ated supplier approved data for that product as pub5 lic data, and therefore releasable, upon request, to a 

6 person seeking to maintain the airworthiness of such 

7 product, if the Administrator determines that— 

8 ‘‘(i) the certificate containing the requested 

9 data has been inactive for 3 years; 

10 ‘‘(ii) the owner of record, or the owner of 

11 record’s heir, of the type certificate or supple12 mental certificate has not been located despite 

13 a search of due diligence by the agency; and 

14 ‘‘(iii) the designation of such data as pub15 lic data will enhance aviation safety. 

16 ‘‘(B) In this section, the term ‘engineering 

17 data’ means type design drawings and specifications 

18 for the entire product, including the original design 

19 data, any approved data for any supplemental type 

20 certificates, and any approved data for individual 

21 parts or components for the particular aeronautical 

22 product.’’. 

23 SEC. 413. DESIGN ORGANIZATION CERTIFICATES. 

24 Section 44704(e) is amended— 


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1 (1) by striking ‘‘Beginning 7 years after the 

2 date of enactment of this subsection,’’ in paragraph 

3 (1) and inserting ‘‘Effective January 1, 2013,’’; 

4 (2) by striking ‘‘44701(a) for the type certifi5 cation of aircraft, aircraft engines, propellers, or ap6 pliances.’’ in paragraph (1) and inserting ‘‘44701.’’; 

7 (3) by striking ‘‘testing’’ in paragraph (2) and 

8 inserting ‘‘production’’; and 

9 (4) by striking paragraph (3) and inserting the 

10 following: 

11 ‘‘(3) ISSUANCE OF CERTIFICATE BASED ON DESIGN

12 ORGANIZATION CERTIFICATION.—The Administrator may 

13 rely on the Design Organization for certification of compli14 ance under this section.’’. 

15 SEC. 414. CONTRACT TOWER PROGRAM. 

16 Section 47124(b) is amended— 

17 (1) by striking ‘‘(Visual Flight Rules) level I’’ 

18 in paragraph (1) and inserting ‘‘nonapproach con19 trol’’; and 

20 (2) by striking ‘‘an airport traffic control tower 

21 classified as a level I (Visual Flight Rules)’’ in para22 graph (2) and inserting ‘‘a low activity nonapproach 

23 control air traffic control’’. 


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1 SEC. 415. ENHANCED OVERSIGHT OF NEXT GENERATION 

2 AIR TRANSPORTATION SYSTEM JOINT PLAN3 NING AND DEVELOPMENT OFFICE. 

4 Section 709 of Vision 100–Century of Aviation Reau5 thorization Act (49 U.S.C. 40101 note) is amended— 

6 (1) by adding at the end of subsection (a)(1) 

7 ‘‘The Director of the Office shall be supervised for 

8 various purposes by such officer or officers of the 

9 Department as the Secretary may specify.’’; 

10 (2) by adding at the end of subsection (a) the 

11 following: 

12 ‘‘(5) The Director of the Office shall be a voting 

13 member of the Federal Aviation Administration’s Joint 

14 Resources Council and the Air Traffic Organization’s Ex15 ecutive Council.’’; 

16 (3) by redesignating subsections (d) and (e) as 

17 subsections (e) and (f), respectively, and inserting 

18 after subsection (c) the following: 

19 ‘‘(d) CONSOLIDATED OPERATIONAL EVOLUTION

20 PARTNERSHIP.—The Administrator of the Federal Avia21 tion Administration shall develop and publish annually a 

22 consolidated operational evolution partnership that pro23 vides a detailed description of how the agency is imple24 menting the Next Generation Air Transportation Sys25 tem.’’; and 


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1 (4) by striking ‘‘plan.’’ in paragraph (2) of sub2 section (e), as redesignated, and inserting ‘‘plan, and 

3 how the respective budgets, and assignment of ex4 pert personnel, of the Federal Aviation Administra5 tion, the National Aeronautics and Space Adminis6 tration, the Departments of Defense, the Depart7 ment of Homeland Security, the Department of 

8 Commerce and any other Federal agency that has 

9 an important interest in, or responsibility for, the 

10 Next Generation Air Transportation System support 

11 specific operational improvements for such System.’’. 

12 TITLE V—AVIATION SAFETY, SE13 CURITY, CAPACITY, AND 

14 CONNECTIVITY IMPROVE15 MENTS 

16 SEC. 501. DISCLOSURE OF DATA TO FEDERAL AGENCIES IN 

17 INTEREST OF NATIONAL SECURITY. 

18 Section 40119(b) is amended by adding at the end 

19 the following: 

20 ‘‘(3) Section 552 of title 5 does not apply to disclo21 sures the Administrator of the Federal Aviation Adminis22 tration may make from the agency’s systems of records 

23 to any Federal law enforcement, intelligence, protective, 

24 immigration, or national security official in order to assist 


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1 the official receiving that information in the performance 

2 of official duties.’’. 

3 SEC. 502. FAA ACCESS TO CRIMINAL HISTORY RECORDS OR 

4 DATABASE SYSTEMS. 

5 (a) IN GENERAL.—Chapter 401 is amended by add6 ing at the end thereof the following: 

7 ‘‘§ 40130. FAA access to criminal history records or 

8 databases systems 

9 ‘‘(a) ACCESS TO RECORDS OR DATABASES SYS10 TEMS.— 

11 ‘‘(1) Notwithstanding section 534 of title 28 

12 and the implementing regulations for such section 

13 (28 C.F.R. part 20), the Administrator of the Fed14 eral Aviation Administration is authorized to access 

15 a system of documented criminal justice information 

16 maintained by the Department of Justice or by a 

17 State but may do so only for the purpose of carrying 

18 out its civil and administrative responsibilities to 

19 protect the safety and security of the National Air20 space System or to support the missions of the De21 partment of Justice, the Department of Homeland 

22 Security and other law enforcement agencies. The 

23 Administrator shall be subject to the same condi24 tions or procedures established by the Department 

25 of Justice or State for access to such an information 


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1 system by other governmental agencies with access 

2 to the system. 

3 ‘‘(2) The Administrator may not use the access 

4 authorized under paragraph (1) to conduct criminal 

5 investigations. 

6 ‘‘(b) DESIGNATED EMPLOYEES.—The Administrator 

7 shall, by order, designate those employees of the Adminis8 tration who shall carry out the authority described in sub9 section (a). Such designated employees may— 

10 ‘‘(1) have access to and receive criminal history, 

11 driver, vehicle, and other law enforcement informa12 tion contained in the law enforcement databases of 

13 the Department of Justice, or of any jurisdiction in 

14 a State in the same manner as a police officer em15 ployed by a State or local authority of that State 

16 who is certified or commissioned under the laws of 

17 that State; 

18 ‘‘(2) use any radio, data link, or warning sys19 tem of the Federal government and of any jurisdic20 tion in a State that provides information about 

21 wanted persons, be-on-the-lookout notices, or war22 rant status or other officer safety information to 

23 which a police officer employed by a State or local 

24 authority in that State who is certified or commisVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 sion under the laws of that State has access and in 

2 the same manner as such police officer; or 

3 ‘‘(3) receive Federal, State, or local government 

4 communications with a police officer employed by a 

5 State or local authority in that State in the same 

6 manner as a police officer employed by a State or 

7 local authority in that State who is commissioned 

8 under the laws of that State. 

9 ‘‘(c) SYSTEM OF DOCUMENTED CRIMINAL JUSTICE

10 INFORMATION DEFINED.—In this section the term ‘sys11 tem of documented criminal justice information’ means 

12 any law enforcement databases, systems or communica13 tions containing information concerning identification, 

14 criminal history, arrests, convictions, arrest warrants, 

15 wanted or missing persons, including the National Crime 

16 Information Center and its incorporated criminal history 

17 databases and the National Law Enforcement Tele18 communications System.’’. 

19 (b) CONFORMING AMENDMENT.—The chapter anal20 ysis for chapter 401 is amended by inserting after the item 

21 relating to section 40129 the following: 

‘‘§ 40130. FAA access to criminal history records or databases systems.’’. 

22 SEC. 503. ALLOCATION OF OPERATING AUTHORIZATIONS 

23 AT LAGUARDIA AIRPORT. 

24 (a) IN GENERAL.—Subchapter I of chapter 417 is 

25 amended by adding at the end thereof the following: 


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1 ‘‘§ 41724. Allocation of operating authorizations at 

2 LaGuardia Airport 

3 (a) GENERAL AUTHORITY.— 

4 ‘‘(1) Notwithstanding any other provision of 

5 law, the Secretary of Transportation and the Admin6 istrator of the Federal Aviation Administration may 

7 determine that the use of a market based mecha8 nism, such as an auction or congestion pricing, is 

9 appropriate to promote the efficient movement of air 

10 traffic at LaGuardia Airport. To accomplish this ob11 jective, the Administrator shall determine the oper12 ational capacity of LaGuardia airport, in accordance 

13 with section 40103 of this title. 

14 ‘‘(2) If the Secretary makes a the determination 

15 under subsection (a) that use of a market-based 

16 mechanism is appropriate, the Secretary and the Ad17 ministrator shall permit the Port Authority of New 

18 York and New Jersey (Port Authority) to implement 

19 a market-based measure for the allocation of oper20 ating authorizations at the airport in accordance 

21 with subsection (b). If the Port Authority fails to 

22 implement such a mechanism within 1 year of the 

23 Secretary’s determination, the Secretary may imple24 ment a market-based mechanism at LaGuardia Air25 port in accordance with section 41725 of this title. 

26 ‘‘(b) RULEMAKING.— 


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1 ‘‘(1) The Secretary shall issue a rule to estab2 lish the terms and conditions under which interested 

3 persons may obtain operating authorizations through 

4 a market-based mechanism authorized by subsection 

5 (a). The rule shall also, at a minimum, establish the 

6 procedures, timing, terms and conditions for the im7 plementation of this mechanism. The rule shall in8 clude provisions to protect the public interest as set 

9 forth in section 40101 of this title including— 

10 ‘‘(A) placing maximum reliance on com11 petitive market forces; 

12 ‘‘(B) avoiding unreasonable industry con13 centration; 

14 ‘‘(C) encouraging entry into air transpor15 tation markets by new and existing air carriers; 

16 ‘‘(D) ensuring that passengers in small 

17 communities and rural and remote areas have 

18 access to affordable, scheduled air service; and 

19 ‘‘(E) providing air carriers and the trav20 eling public a stable and predictable schedule 

21 for planning future travel. 

22 ‘‘(2) In developing the terms and conditions for 

23 an allocation mechanism, the Secretary may distin24 guish among classes of aircraft operators and among 

25 types of air service. 


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1 ‘‘(c) ESCROW ACCOUNT.—If the Port Authority im2 plements a market-based mechanism under this section 

3 and such mechanism produces annual revenue in excess 

4 of the annual administrative costs associated with the es5 tablishment and administration of the mechanism, the 

6 Port Authority shall deposit the excess revenue in an es7 crow account. Expenditures may be made from the escrow 

8 account on eligible airport-related projects, in accordance 

9 with section 40117 of this title, or on any other project 

10 that the Secretary finds is in the public interest. 

11 ‘‘(d) RULES OF CONSTRUCTION.—Nothing in this 

12 section or in the use of a market-based mechanism author13 ized by this section shall— 

14 ‘‘(1) diminish the authority of the Adminis15 trator under other provisions of this title to regulate 

16 the safe and efficient use of the national airspace, 

17 including the withdrawal of operating authorizations 

18 obtained under this section when required in the 

19 public interest; or 

20 ‘‘(2) be considered for purpose of any Federal 

21 law a major Federal action significantly affecting 

22 the human environment. 

23 ‘‘(e) TREATMENT AS ADDITIONAL REVENUE.—Ex24 penditures or other financial assistance provided under 

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1 erwise be provided under the Airport Improvement Pro2 gram or any other Federal assistance program.’’. 

3 (b) CONFORMING AMENDMENT.—The chapter anal4 ysis for chapter 417 is amended by inserting after the item 

5 relating to section 41723 the following: 

‘‘41724. Allocation of operating authorizations at LaGuardia Airport.’’. 

6 SEC. 504. PILOT PROGRAM FOR MARKET-BASED MECHA7 NISMS AT CONGESTED AIRPORTS. 

8 (a) PILOT PROGRAM.—Subchapter I of chapter 417, 

9 as amended by section 503, is amended by adding at the 

10 end the following: 

11 ‘‘§ 41725. Pilot program to evaluate market-based 

12 mechanisms at congested airports 

13 ‘‘(a) IN GENERAL.—In order to promote the efficient 

14 use of airport capacity or the efficient movement of air 

15 traffic, the Secretary of Transportation shall establish a 

16 pilot program for market-based pricing mechanisms for 

17 domestic flights at not more than 15 airports under which 

18 an airport owner or operator may adopt, or the Adminis19 trator of the Federal Aviation Administration may impose, 

20 a market-based mechanism for the airport in accordance 

21 with the procedures established by this section. 

22 ‘‘(b) REGIONAL DELAY.— 

23 ‘‘(1) The Secretary may approve the application 

24 of an airport owner or operator to participate in the 

25 program if the Secretary finds that— 


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1 ‘‘(A) the airport experiences demand ex2 ceeding existing capacity in the aggregate or 

3 during specific times or dates; 

4 ‘‘(B) delays at the airport have a signifi5 cant adverse effect on the regional airspace; 

6 and 

7 ‘‘(C) the market-based mechanism pro8 posed by the airport owner or operator will not 

9 result in a disincentive for the airport operator 

10 to add capacity where possible. 

11 ‘‘(2) Once the airport’s participation in the pro12 gram is approved, the airport owner or operator may 

13 implement a market-based mechanism, and, in the 

14 case of a congestion fee or auction, establish the 

15 method of collecting such revenue. Such fees shall be 

16 reasonable and not unjustly discriminatory. 

17 ‘‘(3) An airport owner or operator may estab18 lish or adjust a market-based mechanism under this 

19 program only after consultation with the Adminis20 trator, air carriers serving the airport, and operators 

21 of aircraft based at the airport. 

22 ‘‘(4) If an auction or congestion fee imple23 mented under this section produces annual revenue 

24 in excess of the annual administrative costs associ25 ated with the establishment and administration of 


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1 the fee, the airport owner or operator shall deposit 

2 the excess revenue in an escrow account. Expendi3 tures may be made from the escrow account on eligi4 ble airport-related projects, in accordance with sec5 tion 40117 of this title, or on any other project that 

6 the Secretary finds is in the public interest. 

7 ‘‘(c) DELAYS AFFECTING THE NATIONAL SYSTEM.— 

8 ‘‘(1) If the Secretary finds that the capacity 

9 constraints at an airport cause significant delays be10 yond the region in which the airport is located and 

11 have negative effects on the National Airspace Sys12 tem, and the owner or operator of such airport has 

13 not already adopted a market-based mechanism 

14 under subsection (b), then the Secretary may imple15 ment, through rulemaking, a market-based mecha16 nism at the airport under the program to address 

17 these effects on the system. If market-based mecha18 nisms are implemented, the Administrator of the 

19 Federal Aviation Administration shall establish the 

20 method of collecting such fees. Such fees shall be 

21 reasonable and not unjustly discriminatory. 

22 ‘‘(2) The Administrator may establish or adjust 

23 a market-based mechanism under this program only 

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1 ator, air carriers serving the airport, and operators 

2 of aircraft based at the airport. 

3 ‘‘(3) If market-based mechanisms implemented 

4 by the Administrator under this section produce an5 nual revenue in excess of the annual administrative 

6 costs associated with the establishment and adminis7 tration of the fee, the Administrator shall deposit 

8 the surplus funds in an account established in the 

9 Treasury, and designated as the Airspace Conges10 tion Mitigation Account. Such surplus revenue shall 

11 be available to the Secretary, as specified in appro12 priations Acts, until expended, for— 

13 ‘‘(A) airport capacity expansion or airport 

14 congestion and delay reduction at the airport at 

15 which a market based mechanism is imple16 mented; 

17 ‘‘(B) airport capacity expansion or airport 

18 congestion and delay reduction at other con19 gested airports, with priority given to capacity 

20 projects in the same region as the airport at 

21 which a market based mechanism is imple22 mented; 

23 ‘‘(C) improvement of ground access to the 

24 airports in the vicinity, as defined by the Sec25 retary, if the Secretary finds that it would help 


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1 relieve congestion at the airport where a mar2 ket-based mechanism is implemented; 

3 ‘‘(D) construction, reconstruction or recon4 figuration of gates and related areas at the air5 port where a market-based mechanism is imple6 mented; 

7 ‘‘(E) facilities, equipment, or other air 

8 traffic control improvement projects that would 

9 enhance airport or airspace capacity in the Na10 tional Airspace System, with priority given to 

11 projects in the region of an airport where a 

12 market-based mechanism is implemented; and 

13 ‘‘(F) assistance to air carriers in the pur14 chase of equipment for their aircraft to enable 

15 them to utilize air traffic control facilities and 

16 equipment, including the facilities and equip17 ment purchased under subparagraph (E), in 

18 order to enhance airport and airspace capacity. 

19 ‘‘(d) CONFORMANCE WITH REQUIREMENTS.—A mar20 ket-based mechanism implemented under this pilot pro21 gram shall be deemed to meet the requirements of section 

22 40116 and chapter 471 of this title. 

23 ‘‘(e) MARKET-BASED MECHANISM DEFINED.—In 

24 this section, the term ‘market-based mechanism’ includes 

25 the use of auctions, or congestion or peak period pricing, 


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1 under which fees may vary by time of day or day of the 

2 week in order to reduce aviation congestion and delays. 

3 ‘‘(f) EXCLUSION.—An airport subject to the require4 ments of section 41724 is not eligible to participate in this 

5 pilot program.’’. 

6 (b) CONFORMING AMENDMENT.—The chapter anal7 ysis for chapter 417, as amended by section 503, is 

8 amended by inserting after the item relating to section 

9 41724 the following: 

‘‘41725. Pilot Program for market-based mechanisms at congested airports.’’. 

10 TITLE VI—ENVIRONMENTAL 

11 STEWARDSHIP AND STREAM12 LINING 

13 SEC. 601. AIRPORT COOPERATIVE RESEARCH PROGRAM. 

14 Section 44511(f)is amended— 

15 (1) by striking ‘‘establish a 4-year pilot’’ in 

16 paragraph (1) and inserting ‘‘maintain an’’; and 

17 (2) by inserting ‘‘pilot’’ in paragraph (4) before 

18 ‘‘program’’ the first time it appears; and 

19 (3) by striking ‘‘program, including rec20 ommendations as to the need for establishing a per21 manent airport cooperative research program.’’ in 

22 paragraph (4) and inserting ‘‘program.’’. 

23 SEC. 602. STATE BLOCK GRANT PROGRAM. 

24 Section 47128 is amended— 


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1 (1) by striking ‘‘regulations’’ each place it ap2 pears in subsection (a) and inserting ‘‘guidance’’; 

3 (2) by striking ‘‘grant;’’ in subsection (b)(4) 

4 and inserting ‘‘grant, including Federal environ5 mental requirements or an agreed upon equivalent;’’; 

6 and 

7 (3) by redesignating subsection (c) as sub8 section (d) and inserting after subsection (b) the fol9 lowing: 

10 ‘‘(c) ENVIRONMENTAL ANALYSIS AND COORDINA11 TION REQUIREMENTS.—Any Federal agency that must 

12 approve, license or permit a proposed action by a partici13 pating State shall coordinate and consult with the State. 

14 The agency shall utilize the environmental analysis pre15 pared by the State, provided it is adequate, or supplement 

16 that analysis as necessary to meet applicable Federal re17 quirements.’’. 

18 SEC. 603. AIRPORT FUNDING OF SPECIAL STUDIES OR RE19 VIEWS. 

20 Section 47173(a) is amended by striking ‘‘project.’’ 

21 and inserting ‘‘project, or to conduct special environmental 

22 studies related to a Federally funded airport project or 

23 for special studies or reviews to support approved noise 

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1 mental mitigation in a Federal Aviation Administration 

2 Record of Decision or Finding of No Significant Impact.’’. 

3 SEC. 604. ENVIRONMENTAL MITIGATION DEMONSTRATION 

4 PILOT PROGRAM. 

5 (a) PILOT PROGRAM.—Chapter 471 is amended by 

6 adding at the end thereof the following: 

7 ‘‘§ 47143. Environmental mitigation demonstration 

8 pilot program 

9 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

10 shall carry out a pilot program involving not more than 

11 6 projects at public-use airports under which the Secretary 

12 may make grants to sponsors of such airports from funds 

13 apportioned under paragraph 47117(e)(1)(A) for use at 

14 such airports for environmental mitigation demonstration 

15 projects that will measurably reduce or mitigate aviation 

16 impacts on noise, air quality or water quality in the vicin17 ity of the airport. Notwithstanding any other provision of 

18 this subchapter, an environmental mitigation demonstra19 tion project approved under this section shall be treated 

20 as eligible for assistance under this subchapter. 

21 ‘‘(b) PARTICIPATION IN PILOT PROGRAM.—A public22 use airport shall be eligible for participation in the pilot. 

23 ‘‘(c) SELECTION CRITERIA.—In selecting from 

24 among applicants for participation in the pilot program, 


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1 the Secretary may give priority consideration to environ2 mental mitigation demonstration projects that— 

3 ‘‘(1) will achieve the greatest reductions in air4 craft noise, airport emissions, or airport water qual5 ity impacts either on an absolute basis, or on a per6 dollar-of-funds expended basis; and 

7 ‘‘(2) will be implemented by an eligible consor8 tium. 

9 ‘‘(d) FEDERAL SHARE.—Notwithstanding any other 

10 provision of this subchapter, the United States Govern11 ment’s share of the costs of a project carried out under 

12 this section shall be 50 percent. 

13 ‘‘(e) MAXIMUM AMOUNT.—Not more than 

14 $2,500,000 may be made available by the Secretary in 

15 grants under this section for any single project. 

16 ‘‘(f) IDENTIFYING BEST PRACTICES.—The Adminis17 trator may develop and publish information identifying 

18 best practices for reducing or mitigating aviation impacts 

19 on noise, air quality, or water quality in the vicinity of 

20 airports, based on the projects carried out under the pilot 

21 program. 

22 ‘‘(g) DEFINITIONS.—In this section: 

23 ‘‘(1) ELIGIBLE CONSORTIUM.—The term ‘eligi24 ble consortium’ means a consortium that comprises 

25 2 or more of the following entities: 


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1 ‘‘(A) Businesses incorporated in the 

2 United States. 

3 ‘‘(B) Public or private educational or re4 search organizations located in the United 

5 States. 

6 ‘‘(C) Entities of State or local governments 

7 in the United States. 

8 ‘‘(D) Federal laboratories. 

9 ‘‘(2) ENVIRONMENTAL MITIGATION DEM10 ONSTRATION PROJECT.—The term ‘environmental 

11 mitigation demonstration project’ means a project 

12 that— 

13 ‘‘(A) introduces new conceptual environ14 mental mitigation techniques or technology with 

15 associated benefits, which have already been 

16 proven in laboratory demonstrations; 

17 ‘‘(B) proposes methods for efficient adap18 tation or integration of new concepts to airport 

19 operations; and 

20 ‘‘(C) will demonstrate whether new tech21 niques or technology for environmental mitiga22 tion identified in research are— 

23 ‘‘(i) practical to implement at or near 

24 multiple public use airports; and 


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1 ‘‘(ii) capable of reducing noise, airport 

2 emissions, or water quality impacts in 

3 measurably significant amounts.’’. 

4 (b) CONFORMING AMENDMENT.—The chapter anal5 ysis for chapter 471 is amended by inserting after the item 

6 relating to section 47142 the following: 

‘‘47143. Environmental mitigation demonstration pilot program.’’. 

7 SEC. 605. GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT 

8 PROCEDURES. 

9 Section 47504 is amended by adding at the end the 

10 following: 

11 ‘‘(e) GRANTS FOR ASSESSMENT OF FLIGHT PROCE12 DURES.— 

13 ‘‘‘(1) The Secretary is authorized in accordance 

14 with subsection (c)(1) to make a grant to an airport 

15 operator to assist in completing environmental re16 view and assessment activities for proposals to im17 plement flight procedures that have been approved 

18 for airport noise compatibility planning purposes 

19 under subsection (b). 

20 ‘‘(2) The Administrator of the Federal Aviation 

21 Administration may accept funds from an airport 

22 sponsor, including funds provided to the sponsor 

23 under paragraph (1), to hire additional staff or ob24 tain the services of consultants in order to facilitate 

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1 ronmental activities associated with proposals to im2 plement flight procedures submitted and approved 

3 for airport noise compatibility planning purposes in 

4 accordance with this section. Funds received under 

5 this authority shall not be subject to the procedures 

6 applicable to the receipt of gifts by the Adminis7 trator.’’. 

8 SEC. 606. RESEARCH CONSORTIUM FOR LOWER ENERGY, 

9 EMISSIONS, AND NOISE TECHNOLOGY PART10 NERSHIP. 

11 (a) ESTABLISHMENT OF CONSORTIUM.—Subchapter 

12 I of chapter 475 is amended by adding at the end the 

13 following: 

14 ‘‘§ 47512. Research consortium for lower energy, 

15 emissions and noise technology partner16 ship 

17 ‘‘(a) ‘CLEEN’ ENGINE TECHNOLOGY PARTNER18 SHIP.—The Administrator of the Federal Aviation Admin19 istration shall enter into a cooperative agreement with the 

20 Partnership for AiR Transportation Noise and Emissions 

21 Reduction (PARTNER) Center of Excellence for the de22 velopment, maturing, and certification for Continuous 

23 Lower Energy, Emissions and Noise (CLEEN) engine and 

24 airframe technology for aircraft over the next 10 years. 


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1 ‘‘(b) PERFORMANCE OBJECTIVE.—The Adminis2 trator shall establish the following performance objectives 

3 for the program to be completed by 2015: 

4 ‘‘(1) Certifiable aircraft technology that in5 creases aircraft fuel efficiency by 25 percent relative 

6 to 1997 subsonic aircraft technology. 

7 ‘‘(2) Certifiable engine technology that reduces 

8 landing and takeoff cycle nitrogen oxide emissions 

9 by 50 percent, without increasing other gaseous or 

10 particle emissions, over the International Civil Avia11 tion Organization standard adopted in 2004. 

12 ‘‘(3) Certifiable aircraft technology that reduces 

13 noise levels by 10 dB relative to 1997 subsonic jet 

14 aircraft technology. 

15 ‘‘(4) Determination of the feasibility of use of 

16 alternative fuels in aircraft systems, including suc17 cessful demonstration and quantification of benefits. 

18 ‘‘(5) Determination of the extent to which new 

19 engine and aircraft technologies may be used to ret20 rofit or re-engine aircraft so as to increase the level 

21 of penetration into the commercial fleet. 

22 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated from the funding pro24 vided for the Next Generation Air Transportation System 

25 program such sums as necessary to carry out this section. 


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1 ‘‘(d) PROGRESS REPORTS.—The Administrator shall 

2 publish a progress report on the CLEEN program each 

3 year beginning in 2009.’’. 

4 (b) CONFORMING AMENDMENT.—The chapter anal5 ysis for chapter 475 is amended by inserting after the item 

6 relating to section 47511 the following: 

‘‘47512. Research consortium for lower energy, emissions, and noise technology 

partnership.’’. 

7 SEC. 607. AMENDMENTS TO AIR TOUR MANAGEMENT PRO8 GRAM. 

9 (a) IN GENERAL.—Section 40128(a) is amended— 

10 (1) by striking ‘‘lands.’’ in paragraph (1)(C) 

11 and inserting ‘‘lands, or a voluntary agreement.’’; 

12 and 

13 (2) by adding at the end the following: 

14 ‘‘(5) EXEMPTION.—Notwithstanding paragraph 

15 (1), units of the national park system that have 50 

16 or fewer commercial air tour flights a year shall be 

17 exempt from the requirements of this section, except 

18 that the Director may determine at any time that 

19 this exemption shall not apply to any park for which 

20 the Director determines an air tour management 

21 plan or voluntary agreement is necessary to protect 

22 park resources and values or park visitor use and 

23 enjoyment. The Director shall inform the Adminis24 trator in writing of such determinations. The DirecVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00126 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tor and Administrator shall publish an annual list of 

2 national parks that fall within the exemption pro3 vided by this paragraph. A commercial air tour oper4 ator conducting commercial air tours in a national 

5 park that is exempt from the requirements of this 

6 section shall submit to the Administrator and the 

7 Director an annual report of the number of air tour 

8 flights it conducts each year in such exempted 

9 park.’’. 

10 (b) AIR TOUR MANAGEMENT PLANS.—Section 

11 40128(b) is amended by adding at the end the following: 

12 ‘‘(7) VOLUNTARY AGREEMENTS.— 

13 ‘‘(A) As an alternative to an air tour man14 agement plan, for any unit of the national park 

15 system, the Director and the Administrator 

16 may enter into a voluntary agreement to man17 age commercial air tour operations over a park 

18 unit with any commercial air tour operators 

19 that have applied for authority to conduct air 

20 tour operations over the park unit, including ex21 isting operators that have interim operating au22 thority, and new entrant applicants. 

23 ‘‘(B) The voluntary agreement shall ad24 dress the management issues necessary to proVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00127 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tect park resources and visitor use without com2 promising aviation safety, and may— 

3 ‘‘(i) include provisions described in 

4 subparagraphs (B) through (E) of para5 graph (3); 

6 ‘‘(ii) include provisions to insure the 

7 stability of and compliance with the vol8 untary agreement; and 

9 ‘‘(iii) provide for fees for operating 

10 over the park. 

11 ‘‘(C) The Director and the Administrator 

12 shall offer the opportunity for public review of 

13 a proposed voluntary agreement, and shall con14 sult with any Indian tribe whose tribal lands 

15 are, or may be, overflown by commercial air 

16 tour operators under a voluntary agreement. 

17 ‘‘(D) Following such public review and 

18 consultation, a voluntary agreement may be im19 plemented without further administrative or en20 vironmental process. 

21 ‘‘(E) A voluntary agreement may be re22 scinded at the discretion of the Director or the 

23 Administrator if the Director determines that 

24 the agreement is not adequately protecting park 

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1 trator determines that the agreement is ad2 versely affecting aviation safety or the national 

3 aviation system. If a voluntary agreement for a 

4 park is rescinded, the operators must conform 

5 to the requirements for interim operating au6 thority under subsection (c) until an air tour 

7 management plan for the park is in effect.’’. 

8 (c) INTERIM OPERATING AUTHORITY.—Section 

9 40128(c) is amended— 

10 (1) by striking subparagraph (I) of paragraph 

11 (2) and inserting the following: 

12 ‘‘(I) may allow for modifications of the interim 

13 operating authority without further environmental 

14 process if— 

15 ‘‘(i) adequate information on the operator’s 

16 existing and proposed operations is provided to 

17 the Administrator and the Director by the oper18 ator making the request; 

19 ‘‘(ii) the Administrator agrees that there 

20 would be no adverse impact on aviation safety; 

21 and 

22 ‘‘(iii) the Director agrees, based on profes23 sional expertise regarding the protection of the 

24 park resources and values and visitor use and 

25 enjoyment.’’; 


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1 (2) by striking from ‘‘if the Administrator de2 termines’’ in paragraph (3)(A) through the end and 

3 inserting ‘‘without further environmental process 

4 if— 

5 ‘‘(i) adequate information on the operator’s 

6 proposed operations is provided to the Adminis7 trator and the Director by the operator making 

8 the request; 

9 ‘‘(ii) the Administrator agrees that 

10 there would be no adverse impact on avia11 tion safety; and 

12 ‘‘(iii) the Director agrees, based on 

13 professional expertise regarding the protec14 tion of park resources and values and vis15 itor use and enjoyment.’’; and 

16 (3) by striking subparagraph (B) of paragraph 

17 (3) and redesignating subparagraph (C) as subpara18 graph (B). 

19 (d) COMMERCIAL AIR TOUR OPERATOR REPORTS.— 

20 Section 40128 is amended by redesignating subsections 

21 (d) and (e) as subsections (e) and (f), respectively, and 

22 inserting after subsection (c) the following: 

23 ‘‘(d) COMMERCIAL AIR TOUR OPERATOR RE24 PORTS.—Each commercial air tour operator providing a 

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1 terim operating authority or in accordance with an air 

2 tour management plan shall report the number of com3 mercial air tour operations over each park unit and other 

4 data requested by the Administrator and Director in order 

5 to facilitate administering the provisions of this section. 

6 The reports shall be on a frequency and in a format re7 quested by the Administrator and Director, and shall be 

8 submitted to both the Administrator and Director or their 

9 designees. The Administrator and Director shall jointly 

10 issue an initial request for the reports authorized in this 

11 subsection no later than 3 months after the date of enact12 ment of the Next Generation Air Transportation System 

13 Financing Reform Act of 2007.’’. 

14 TITLE VII—AVIATION 

15 INSURANCE 

16 SEC. 701. GENERAL AUTHORITY. 

17 (a) IN GENERAL.—Section 44302 is amended— 

18 (1) by striking ‘‘subsection (c)’’ in subsection 

19 (a)(1) and inserting ‘‘subsection (b)’’; 

20 (2) by striking subsection (b) and redesignating 

21 subsections (c) through (g) as subsections (b) 

22 through (f); and 

23 (3) by striking paragraph (2) of subsection (e), 

24 as redesignated, and inserting the following: 


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1 ‘‘(2) SPECIAL RULES.—Notwithstanding para2 graph (1)k, in no event shall the total premium paid 

3 by the air carrier for the policy, as amended, be 

4 more than twice the premium that the air carrier 

5 was paying to the Department of Transportation for 

6 its third party policy as of June 19, 2002.’’. 

7 (b) CONFORMING AMENDMENT.—Section 44303(a) 

8 is amended by striking ‘‘reinsurance, or reimburse insur9 ance costs,’’ and inserting ‘‘reinsurance’’. 

10 SEC. 702. EXTENSION OF AUTHORITY TO LIMIT THIRD 

11 PARTY LIABILITY OF AIR CARRIERS ARISING 

12 OUT OF ACTS OF TERRORISM. 

13 Section 44303(b) is amended by striking ‘‘December 

14 31, 2006,’’ and inserting ‘‘December 31, 2011,’’. 

15 SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY. 

16 Section 44304 is amended by striking ‘‘the carrier’’ 

17 and inserting ‘‘any insurance carrier’’. 

18 SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS. 

19 Section 44308(c)(1) is amended by striking ‘‘agent’’ 

20 in the second sentence and inserting ‘‘agent, or a claims 

21 adjuster who is independent of the underwriting agent,’’. 

22 SEC. 705. EXTENSION OF PROGRAM AUTHORITY. 

23 Section 44310 is amended by striking ‘‘March 30, 

24 2008.’’ and inserting ‘‘March 30, 2013.’’. 


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1 TITLE VIII—AVIATION SERVICE 

2 IMPROVEMENTS 

3 SEC. 801. EXTENSION OF COMPETITIVE ACCESS REPORTS. 

4 Section 47107(s)(3) is amended by striking ‘‘2008.’’ 

5 and inserting ‘‘2012.’’. 

6 SEC. 802. ESSENTIAL AIR SERVICE REFORM. 

7 (a) ELIGIBLE PLACE DEFINED.— 

8 (1) IN GENERAL.—Section 41731 is amended 

9 to read as follows: 

10 ‘‘§ 41731. Eligible place defined 

11 ‘‘In this subchapter the term ‘eligible place’ means 

12 a place in the United States— 

13 ‘‘(1) that as of the date of enactment of the 

14 Next Generation Air Transportation System Financ15 ing Reform Act of 2007, was receiving subsidized 

16 Essential Air Service; 

17 ‘‘(2) that is more than 70 highway miles from 

18 the nearest medium or large hub airport; and 

19 ‘‘(3) at which the subsidy per passenger does 

20 not exceed $200 for a community that is less than 

21 210 miles from the nearest medium or large hub air22 port.’’. 

23 (2) CONFORMING AMENDMENT.—The chapter 

24 analysis for chapter 417 is amended by striking the 


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1 item relating to section 41731 and inserting the fol2 lowing: 

‘‘41731. Eligible place defined’’. 

3 (b) ESSENTIAL AIR SERVICE.— 

4 (1) IN GENERAL.—Section 41732 is amended 

5 to read as follows: 

6 ‘‘§ 41732. Essential air service 

7 ‘‘Essential air service provided under section 41733 

8 of this title is transportation of passengers and cargo to 

9 a destination airport and at a level of service comparable 

10 to what the community received on the date of enactment 

11 of the Next Generation Air Transportation System Fi12 nancing Reform Act of 2007.’’. 

13 (2) CONFORMING AMENDMENT.—The chapter 

14 analysis for chapter 417 is amended by striking the 

15 item relating to section 41732 and inserting the fol16 lowing: 

‘‘41732. Essential air service.’’. 

17 (c) AVAILABILITY OF COMPENSATION.— 

18 (1) IN GENERAL.—Section 41733 is amended 

19 to read as follows: 

20 ‘‘§ 41733. Selection criteria and availability of com21 pensation 

22 ‘‘(a) AVAILABILITY OF COMPENSATION.— 

23 ‘‘(1) If the Secretary decides that essential air 

24 service under section 41732 will not be provided to 


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1 an eligible place without compensation, the Secretary 

2 shall provide notice that any air carrier may apply 

3 to provide essential air service to the place for com4 pensation under this section. In selecting an appli5 cant, the Secretary may consider, among other fac6 tors— 

7 ‘‘(A) the demonstrated reliability of the ap8 plicant in providing air service; 

9 ‘‘(B) the contractual and marketing ar10 rangements the applicant has made with air 

11 carriers to ensure service beyond the destination 

12 airport; 

13 ‘‘(C) the interline arrangements that the 

14 applicant has made with a larger carrier to 

15 allow passengers and cargo of the applicant at 

16 the destination airport to be transported by car17 riers through one reservation, ticket, and bag18 gage check-in; 

19 ‘‘(D) the preferences of the actual and po20 tential users of air service at the eligible place, 

21 giving substantial weight to the views of the 

22 elected officials representing the users; and 

23 ‘‘(E) the relative subsidy costs to the 

24 United States Government based on the appli25 cants’ proposals. 


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1 ‘‘(2) Under guidelines prescribed under section 

2 41737 of this subchapter, the Secretary shall pay 

3 the rate of compensation for providing essential air 

4 service under this section and section 41734 of this 

5 subchapter. 

6 ‘‘(b) COMPENSATION PAYMENTS.—The Secretary 

7 shall pay compensation under this section at times and 

8 in the way the Secretary decides is appropriate. The Sec9 retary shall end payment of compensation to an air carrier 

10 for providing essential air service to an eligible place when 

11 the Secretary decides the compensation is no longer nec12 essary to maintain essential air service to the place. 

13 ‘‘(c) REVIEW.—The Secretary shall review periodi14 cally the level of essential air service for each eligible place. 

15 Based on the review and consultations with the interested 

16 community and the appropriate State authority of the 

17 State in which the community is located, the Secretary 

18 may make appropriate adjustments in the level of service, 

19 but the level of service that is subsidized may not be more 

20 than that which a community is receiving as of the date 

21 of enactment of the Next Generation Air Transportation 

22 System Financing Reform Act of 2007.’’. 

23 (2) CONFORMING AMENDMENT.—The chapter 

24 analysis for chapter 417 is amended by striking the 


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1 item relating to section 41733 and inserting the fol2 lowing: 

‘‘41733. Selection criteria and availability of compensation.’’. 

3 (d) ENDING, SUSPENDING OR REDUCING ESSENTIAL

4 AIR SERVICE.—Section 41734 is amended to read as fol5 lows: 

6 ‘‘§ 41734. Ending, suspending, and reducing essential 

7 air service 

8 ‘‘(a) Notice Required.—An air carrier may end, sus9 pend, or reduce air transportation to an eligible place 

10 below the level of essential air service established for that 

11 place under this subchapter only after giving the Secretary 

12 of Transportation, the appropriate State authority, and 

13 the affected communities at least 90 days’ notice before 

14 ending, suspending, or reducing that air service. 

15 ‘‘(b) CONTINUATION OF SERVICE FOR 30 DAYS

16 AFTER NOTICE PERIOD.—If at the end of the notice pe17 riod under subsection (a) of this section the Secretary has 

18 not found another air carrier to provide essential air serv19 ice to the eligible place, the Secretary shall require the 

20 carrier providing notice to continue to provide essential air 

21 service to the place for an additional 30-day period or until 

22 another air carrier begins to provide essential air service 

23 to the place, whichever occurs first. 

24 ‘‘(c) CONTINUATION OF SERVICE FOR ADDITIONAL

25 30-DAY PERIODS.—If at the end of the 30-day period 


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1 under subsection (b) of this section the Secretary decides 

2 another air carrier will not provide essential air service 

3 to the place on a continuing basis, the Secretary shall re4 quire the air carrier providing service to continue to pro5 vide service for additional 30-day periods until another air 

6 carrier begins providing service on a continuing basis. At 

7 the end of each 30-day period, the Secretary shall decide 

8 if another air carrier will provide service on a continuing 

9 basis. 

10 ‘‘(d) CONTINUATION OF COMPENSATION AFTER NO11 TICE PERIOD.—If an air carrier receiving compensation 

12 under this subchapter for providing essential air service 

13 to an eligible place is required to continue to provide serv14 ice to the place under this section after the 90-day notice 

15 period under subsection (a) of this section, the Secretary 

16 shall continue to pay that compensation after the last day 

17 of that period. The Secretary shall pay the compensation 

18 until the Secretary finds another air carrier to provide the 

19 service to the place or the 180th day after the carrier filed 

20 notice to suspend service, whichever is earlier. If, after the 

21 180th day, the Secretary has not found another air carrier 

22 to provide the service, the carrier required to continue to 

23 provide that service shall receive compensation sufficient 

24 to pay for the fully allocated actual cost to the air carrier 

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1 vided when the 90-day notice was given under subsection 

2 (a) of this section plus a reasonable return on investment 

3 that is equal to 5 percent of operating costs. 

4 ‘‘(e) FINDING REPLACEMENT SERVICE PRO5 VIDERS.—When the Secretary requires an air carrier to 

6 continue to provide essential air service to an eligible 

7 place, the Secretary shall promptly issue a request for pro8 posals to find another air carrier to provide at least the 

9 essential air service set forth in section 41732 to the place 

10 on a continuing basis.’’. 

11 (e) COMPENSATION GUIDELINES.—Section 41737 is 

12 amended to read as follows: 

13 ‘‘§ 41737. Compensation guidelines, limitations, and 

14 claims 

15 ‘‘(a) COMPENSATION GUIDELINES.— 

16 ‘‘(1) The Secretary of Transportation shall pre17 scribe guidelines governing the rate of compensation 

18 payable under this subchapter. The guidelines shall 

19 be used to determine the reasonable amount of com20 pensation required to ensure the continuation of air 

21 service or air transportation under this subchapter. 

22 The guidelines shall— 

23 ‘‘(A) provide for a reduction in compensa24 tion when an air carrier does not provide serv25 ice or transportation agreed to be provided; 


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1 ‘‘(B) consider amounts needed by an air 

2 carrier to promote public use of the service or 

3 transportation for which compensation is being 

4 paid; and 

5 ‘‘(C) include expense elements based on 

6 representative costs of air carriers providing 

7 scheduled air transportation of passengers, 

8 property, and mail on equipment of the type the 

9 Secretary decides is appropriate for providing 

10 the service or transportation for which com11 pensation is being provided. 

12 ‘‘(2) Promotional amounts described in para13 graph (1)(B) of this subsection shall be a special, 

14 segregated element of the compensation provided to 

15 a carrier under this subchapter. 

16 ‘‘(b) CLAIMS.—Not later than 15 days after receiving 

17 a written claim from an air carrier for compensation under 

18 this subchapter, the Secretary shall— 

19 ‘‘(1) pay or deny the United States Govern20 ment’s share of a claim; and 

21 ‘‘(2) if denying the claim, notify the person of 

22 the denial and the reasons for the denial. 

23 ‘‘(c) AUTHORITY TO MAKE AGREEMENTS AND INCUR

24 OBLIGATIONS.—The Secretary may make agreements and 

25 incur obligations from the Airport and Airway Trust Fund 


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1 established under section 9502 of the Internal Revenue 

2 Code of 1986 (26 U.S.C. 9502) to pay compensation 

3 under this subchapter. An agreement by the Secretary 

4 under this subsection is a contractual obligation of the 

5 Government to pay the Government’s share of the com6 pensation. 

7 ‘‘(d) ELIGIBILITY DETERMINATIONS.— 

8 ‘‘(1) In making all determinations on eligibility 

9 for compensation under this subchapter, the Sec10 retary shall rank all compensated points in their 

11 order of relative decreasing driving distance from the 

12 nearest large or medium hub airport. In this para13 graph, the term ‘driving distance’ means the short14 est driving distance as determined by the Federal 

15 Highway Administration. 

16 ‘‘(2) If the funds appropriated under section 

17 41742 are not sufficient to pay for service to all of 

18 the eligible places, the Secretary shall provide sub19 sidy first to the eligible communities that do not 

20 have highway access to a medium or large hub air21 port, then to the most isolated community, as deter22 mined under paragraph (1), that requires compensa23 tion and then the next most isolated community re24 quiring compensation, and so on, in order, until the 

25 Secretary has obligated not more than the amount 


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1 authorized to be appropriated from the Airport and 

2 Airway Trust Fund under section 48203(b) of this 

3 title, which shall remain available until expended.’’. 

4 (f) AUTHORIZATION.—Section 41742 is amended to 

5 read as follows: 

6 ‘‘§ 41742. Essential air service authorization 

7 ‘‘Beginning in fiscal year 2009, $50,000,000 is au8 thorized and shall be made available immediately for obli9 gation and expenditure to the Secretary of Transportation 

10 out of the Airport and Airway Trust Fund established 

11 under section 9502 of the Internal Revenue Code of 1986 

12 (26 U.S.C. 9502), to carry out the essential air service 

13 program under this subchapter for each fiscal year. 

14 Amounts appropriated pursuant to this section shall re15 main available until expended.’’. 

16 (g) REPEALED PROVISIONS.— 

17 (1) Sections 41735, 41736, 41745, 41747, and 

18 41748 are repealed. 

19 (2) Subchapter III of chapter 417 is repealed. 

20 (h) CONFORMING AMENDMENTS.— 

21 (1) The analysis to chapter 417 is amended by 

22 striking the items relating to sections 41735, 41736, 

23 41745, 41747, and 41748. 

24 (2) The analysis to chapter 417 is amended by 

25 striking all of the items relating to subchapter III. 


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1 (3) Section 41738 is amended by striking ‘‘or 

2 air transportation to a place designated under 

3 41736’’. 

4 SEC. 803. TERMINATION OF DOT AUTHORITY TO SET INTER5 NATIONAL MAIL RATES. 

6 (a) ELIMINATION OF INTERNATIONAL MAIL RATE

7 SETTING AUTHORITY.—Section 41901(b)(1) is amended 

8 by striking ‘‘in foreign air transportation or’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 subsection (a) shall take effect 16 months after the date 

11 of enactment of this Act. 

12 SEC. 804. AIR CARRIAGE OF INTERNATIONAL MAIL. 

13 (a) ELIMINATION OF REQUIREMENT TO FILE CON14 TRACT.—Section 5402(b) of title 39, United States Code, 

15 is amended by striking the last 3 sentences. 

16 (b) ELIMINATION OF SCHEDULES FOR MAIL TRANS17 PORTATION.—Section 41902 is amended— 

18 (1) by striking ‘‘in foreign air transportation 

19 or’’ in subsection (a); 

20 (2) by striking subsection (b) and inserting the 

21 following: 

22 ‘‘(b) STATEMENTS ON PLACES AND SCHEDULES.— 

23 Every air carrier shall file with the United States Postal 

24 Service a statement showing— 


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1 ‘‘(1) the places between which the carrier is au2 thorized to transport mail in Alaska; 

3 ‘‘(2) every schedule of aircraft regularly oper4 ated by the carrier between places described in 

5 clause (1) of this subsection and every change in 

6 each schedule; and 

7 ‘‘(3) for each schedule, the placed served by the 

8 carrier and the time of arrival at, and departure 

9 from, each place.’’; and 

10 (3) by striking subsections (e) and (f). 

11 (c) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall take effect 16 months after the date 

13 of enactment of this Act. 

14 SEC. 805. CONTENTS OF COMPETITION PLANS. 

15 Section 47106(f)(2) is amended— 

16 (1) by striking ‘‘patterns of air service,’’; 

17 (2) by inserting ‘‘and’’ before ‘‘whether’’; and 

18 (3) by striking ‘‘facilities, and airfare levels (as 

19 compiled by the Department of Transportation) 

20 compared to other large airports.’’ and inserting ‘‘fa21 cilities.’’. 

22 SEC. 806. AIRPORT PRIVATIZATION. 

23 Section 47134 is amended— 

24 (1) by striking ‘‘5 airports’’ in the first sen25 tence of subsection (b) and inserting ‘‘15 airports’’; 


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1 (2) by striking so much of subsection (b) as 

2 precedes paragraph (1)(B) and inserting the fol3 lowing: 

4 ‘‘(b)APPROVAL OF APPLICATIONS.— 

5 ‘‘(1) Use of revenues.— 

6 ‘‘(A) IN GENERAL.—The Secretary may 

7 grant an exemption to a sponsor from the pro8 visions of section 47107(b) and 47133 of this 

9 title (and any other law, regulation, or grant 

10 assurance) to the extent necessary to permit the 

11 sponsor to recover from the sale or lease of the 

12 airport such amount as may be approved by the 

13 Secretary after the sponsor has consulted— 

14 ‘‘(i) in the case of a primary airport, 

15 with each air carrier and foreign air car16 rier serving the airport as determined by 

17 the Secretary; or 

18 ‘‘(ii) in the case of a non-primary air19 port, with at least 65 percent of the own20 ers of aircraft based at that airport, as de21 termined by the Secretary.’’; 

22 (3) by resetting the left margin of subpara23 graph (B) of subsection (b)(1) 4 ems from the left; 

24 (4) by striking subparagraph (b)(1)(C); 


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1 (5) by resetting the left margin of paragraphs 

2 (2) and (3) of subsection (b) 2 ems from the left; 

3 (6) by striking paragraphs (4), (5), and (9) of 

4 subsection (c) and redesignating paragraphs (6) 

5 through (8) as paragraphs (4) through (6), respec6 tively; 

7 (7) adding at the end of subsection (c) the fol8 lowing: 

9 ‘‘(7) No part of a fee charged to an air carrier 

10 or a foreign air carrier may include a return on in11 vestment or recovery of principal with respect to 

12 consideration paid to the public agency for the lease 

13 or sale of the airport unless such part of the fee is 

14 approved by the air carrier or foreign air carrier.’’; 

15 and 

16 (8) by striking subsection (d) and redesignating 

17 subsections (e) through (m) as subsections (d) 

18 through (l), respectively. 

19 SEC. 807. CLARIFICATION OF AIR CARRIER FEE DISPUTES. 

20 (a) IN GENERAL.—Section 47129 is amended— 

21 (1) by striking the section heading and insert22 ing the following: 


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1 ‘‘§ 47129. Resolution of airport-air carrier and foreign 

2 air carrier disputes concerning airport 

3 fees’’; 

4 (2) by inserting ‘‘AND FOREIGN AIR CARRIER’’ 

5 in the subsection caption for subsection (d); 

6 (3) by inserting ‘‘AND FOREIGN AIR CARRIER’’ 

7 in the paragraph caption for subsection (d)(2); 

8 (4) by striking ‘‘air carrier’’ each place it ap9 pears and inserting ‘‘air carrier or foreign air car10 rier’’; 

11 (5) by striking ‘‘air carrier’s’’ each place it ap12 pears and inserting ‘‘air carrier’s or foreign air car13 rier’s’’; 

14 (6) by striking ‘‘air carriers’’ each place it ap15 pears and inserting ‘‘air carriers or foreign air car16 riers’’; and 

17 (7) by striking ‘‘(as defined in section 40102 of 

18 this title)’’ in subsection (a) and inserting ‘‘(as those 

19 terms are defined in section 40102 of this title)’’. 

20 (b) CONFORMING AMENDMENT.—The chapter anal21 ysis for chapter 471 is amended by striking the item relat22 ing to section 47129 and inserting the following: 

‘‘47129. Resolution of airport-air carrier and foreign air carrier disputes concerning airport fees.’’. 

23 SEC. 808. AMENDMENTS TO CHAPTER 415. 

24 (a) IN GENERAL.—Chapter 415 is amended— 


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1 (1) by striking sections 41501 and 41502 and 

2 inserting the following: 

3 ‘‘§ 41501. Establishing reasonable prices, classifica4 tions, rules and practices for foreign air 

5 transportation 

6 ‘‘Every air carrier and foreign air carrier shall estab7 lish, comply with, and enforce reasonable prices, classifica8 tions, rules and practices related to foreign air transpor9 tation. 

10 ‘‘§ 41502. Establishing joint prices for through routes 

11 with other carriers 

12 ‘‘An air carrier, including an indirect air carrier, may 

13 establish reasonable joint prices and through service with 

14 another carrier.’’; 

15 (2) by striking sections 41503, 41505, 41506, 

16 41508, and 41510; 

17 (3) by striking section 41504(a) and inserting 

18 the following: 

19 ‘‘(a) FILING AND CONTENTS.—In the way prescribed 

20 by regulation by the Secretary of Transportation, any air 

21 carrier or foreign air carrier providing foreign air trans22 portation between places designated by the Secretary, and 

23 any air carrier or foreign air carrier granted immunity 

24 from the antitrust laws for the coordination of prices pur25 suant to section 41308 of this title, shall file with the SecVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00148 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 retary, publish, and keep open to public inspection, tariffs 

2 showing the prices for the foreign air transportation pro3 vided by the carrier or provided by the carrier and another 

4 air carrier or foreign air carrier in which through service 

5 and joint prices have been established. A tariff— 

6 ‘‘(1) shall contain— 

7 ‘‘(A) to the extent the Secretary requires 

8 by regulation, a description of the classifica9 tions, rules, and practices related to the foreign 

10 air transportation; 

11 ‘‘(B) a statement of the prices in money of 

12 the United States; and 

13 ‘‘(C) other information the Secretary re14 quires by regulation; and 

15 ‘‘(2) may contain— 

16 ‘‘(A) a statement of the prices in money 

17 that is not money of the United States; and 

18 ‘‘(B) information that is required under 

19 the laws of a foreign country in or to which the 

20 air carrier or foreign air carrier is authorized to 

21 operate.’’; and 

22 (4) by striking subsection (e) of section 41509 

23 and redesignating subsections (f) and (g) thereof as 

24 subsections (e) and (f), respectively. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) The chapter analysis for chapter 415 is 

2 amended— 

3 (A) by striking the items relating to sec4 tions 41503, 41505, 41506, 41508, and 41510; 

5 and 

6 (B) by striking the items relating to sec7 tions 41501 and 41502 and inserting the fol8 lowing: 

‘‘41501. Establishing reasonable prices, classifications, rules and practices for 

foreign air transportation. 

‘‘41502. Establishing joint prices for through routes with other carriers.’’. 

9 (2) Section 40109(c) is amended by striking 

10 ‘‘41505,’’. 

11 (3) Section 41110(a)(2)(B) is amended by 

12 striking ‘‘41503, 41504, 41506, 41510,’’ and insert13 ing ‘‘41504,’’. 

14 (4) Section 46301 is amended by striking 

15 ‘‘41505,’’. 

16 TITLE IX—INTERNAL REVENUE 

17 CODE AMENDMENTS 

18 SEC. 901. AMENDMENT OF 1986 CODE. 

19 Except as otherwise expressly provided, whenever in 

20 this Title an amendment or repeal is expressed in terms 

21 of an amendment to, or a repeal of, a section or other 

22 provision, the reference shall be considered to be made to 

23 a section or other provision of the Internal Revenue Code 

24 of 1986. 


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1 SEC. 902. MODIFICATIONS TO TAX ON AVIATION FUEL. 

2 (a) IN GENERAL.—Effective October 1, 2008, section 

3 4081(a)(2) (relating to rates of tax) is amended— 

4 (1) by striking ‘‘gallon,’’ in subparagraph 

5 (A)(ii) and inserting ‘‘gallon, except that the rate of 

6 tax imposed on and after October 1, 2008, shall be 

7 70.0 cents per gallon,’’; 

8 (2) by striking subparagraph (C) and inserting 

9 the following: 

10 ‘‘(C) TAXES IMPOSED ON FUEL USED IN

11 AVIATION.—In the case of kerosene for use in 

12 aviation, the rate of tax under subparagraph 

13 (A)(iii) shall be— 

14 ‘‘(i) in the case of use for commercial 

15 aviation by a person registered for such 

16 use under section 4101 and in which the 

17 fuel is removed from any refinery or ter18 minal directly into the fuel tank of an air19 craft, 4.3 cents per gallon, except that the 

20 rate of tax imposed on and after October 

21 1, 2008, shall be 13.6 cents per gallon; 

22 and 

23 ‘‘(ii) in the case of use for aviation 

24 not described in clause (i), 21.8 cents per 

25 gallon, except that the rate of tax imposed 

26 on and after October 1, 2008, shall be 


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1 70.0 cents per gallon in a case in which 

2 the fuel is removed from any refinery or 

3 terminal directly into the fuel tank of an 

4 aircraft.’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(E) INFLATION ADJUSTMENT OF TAX

7 RATES.—In the case of taxable events in a cal8 endar year after 2009, the amount per gallon 

9 specified in subparagraph (C)(i) shall be in10 creased by an amount equal to such amount, 

11 multiplied by the cost-of-living adjustment de12 termined under section 1(f)(3) for such cal13 endar year by substituting ‘2008’ for ‘1992’ in 

14 subparagraph (B) thereof. Any increase deter15 mined under the preceding sentence shall be 

16 rounded to the nearest tenth of a cent. 

17 ‘‘(F) ADJUSTMENT OF TAX RATES TO RE18 FLECT COST IMPOSED ON THE SYSTEM.—In the 

19 case of taxable events in a calendar year after 

20 2009, the amount per gallon specified in sub21 paragraphs (A)(ii) and (C)(ii) in excess of the 

22 rate specified in (C)(i) shall be an amount 

23 based on the costs, as defined in section 

24 45305(b)(6), imposed by operators who use fuel 

25 on which such taxes are paid as determined by 


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1 the Federal Aviation Administration’s cost allo2 cation system, and shall be increased or de3 creased once every 2 years as necessary to cover 

4 such costs by an amount determined by the 

5 Federal Aviation Administration. Any increase 

6 or decrease determined under the preceding 

7 sentence shall be rounded to the nearest tenth 

8 of a cent.’’. 

9 (b) CONFORMING CHANGES TO FUEL TAX RATE

10 PROVISIONS.— 

11 (1) TAX RATES UNDER SECTION 4081(d)(2).— 

12 Effective October 1, 2007, section 4081(d)(2) (relat13 ing to aviation fuel tax termination) is amended to 

14 read as follows: 

15 ‘‘(2) AVIATION FUELS.—The rates of tax speci16 fied in subsection (a)(2)(A)(ii), (a)(2)(C)(i), and 

17 (a)(2)(C)(ii) shall be 0.00 cents per gallon after Sep18 tember 30, 2017.’’. 

19 (2) TAX RATES UNDER SECTION 4041.—Effec20 tive October 1, 2008, section 4041(c)(3) (relating to 

21 certain liquids used as a fuel in aviation) is amended 

22 by striking ‘‘aviation).’’ and inserting ‘‘aviation, ex23 cept that the rate of tax imposed on and after Octo24 ber 1, 2008, shall be the rate, after adjustment for 

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1 tion 4081(a)(2)(C)(i) with respect to any fuel sold 

2 for use or used for commercial aviation, and under 

3 section 4081(a)(2)(A)(ii) or 4081(a)(2)(C)(ii) with 

4 respect to any other fuel sold for use or used in air5 craft.’’. 

6 (c) FUEL TAX REFUND LIMITATIONS.—Effective Oc7 tober 1, 2008, section 6427(l) is amended— 

8 (1) by striking ‘‘gallon.’’ in paragraph (4)(A)(ii) 

9 and inserting ‘‘gallon and, on and after October 1, 

10 2008, so much of the rate of tax specified in section 

11 4081(a)(2)(A)(iii) as does not exceed the tax speci12 fied in section 4081(a)(2)(C)(i), after adjustment for 

13 inflation under 4081(a)(2)(E).’’; and 

14 (2) by striking ‘‘section 4081(a)(2)(C)(ii).’’ in 

15 paragraph (5)(A)(ii) and inserting ‘‘section 

16 4081(a)(2)(C)(ii) and, on and after October 1, 2008, 

17 so much of the rate of tax specified in section 

18 4081(a)(2)(A)(iii) as does not exceed the tax speci19 fied in section 4081(a)(2)(C)(ii), after adjustment 

20 for inflation under 4081(a)(2)(E).’’. 

21 SEC. 903. MODIFICATIONS TO TAX ON TRANSPORTATION OF 

22 PERSONS BY AIR. 

23 (a) ONE-YEAR EXTENSION OF CURRENT TAXES.— 

24 (1) Section 4261(j)(1)(ii) (relating to imposi25 tion of tax on persons) is amended by striking ‘‘SepVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00154 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tember 30, 2007,’’ and inserting ‘‘September 30, 

2 2008,’’. 

3 (2) Section 4271(d)(1)(A)(ii) (relating to impo4 sition of tax on property) is amended by striking 

5 ‘‘September 30, 2007,’’ and inserting ‘‘September 

6 30, 2008,’’. 

7 (b) MODIFICATIONS TO TAXES.—Effective October 1, 

8 2008, section 4261 (relating to imposition of tax) is 

9 amended— 

10 (1) by striking ‘‘States.’’ in subsection (c)(1) 

11 and inserting ‘‘States, except that the rate of tax 

12 imposed for transportation beginning on and after 

13 October 1, 2008, shall be $6.39.’’; 

14 (2) by striking subsection (c)(2) and inserting 

15 the following: 

16 ‘‘(2) EXCEPTION FOR CERTAIN TRANSPOR17 TATION.—This subsection shall not apply to any 

18 transportation that consumes fuel taxed under sec19 tion 4081(a)(2)(C)(i).’’; 

20 (3) by inserting ‘‘involving transportation be21 ginning before October 1, 2008, and’’ after ‘‘In any 

22 case’’ in subsection (c)(3); 

23 (4) by striking ‘‘(c).’’ in subsection (e)(4)(B)(ii) 

24 and inserting ‘‘(c), except that the last nonindexed 

25 year is 2009 in the case of the dollar amounts conVerDate Aug 31 2005 21:27 Apr 11, 2007 Jkt 059200 PO 00000 Frm 00155 Fmt 6652 Sfmt 6201 E:\BILLS\S1076.IS S1076

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1 tained in subsection (c) that apply to taxable events 

2 in a calendar year after 2009.’’; and 

3 (5) by adding at the end of subsection (j) the 

4 following: 

5 ‘‘(3) EXTENSION OF TAXABLE PERIOD IN THE

6 CASE OF INTERNATIONAL TRAVEL FACILITIES.— 

7 Notwithstanding paragraph (1), the taxes imposed 

8 by subsection (c) of this section shall apply to— 

9 ‘‘(A) transportation beginning during the 

10 period beginning on March 7, 1997, and ending 

11 on September 30, 2017; and 

12 ‘‘(B) amounts paid during such period for 

13 transportation beginning after such period.’’. 

14 SEC. 904. EXTENSION OF AIRPORT AND AIRWAY TRUST 

15 FUND EXPENDITURE AUTHORITY. 

16 (a) IN GENERAL.—Paragraph (1) of section 9502(d) 

17 (relating to expenditures from Airport and Airway Trust 

18 Fund) is amended— 

19 (1) by striking ‘‘October 1, 2007,’’ and insert20 ing ‘‘October 1, 2017,’’; and 

21 (2) by striking ‘‘Act;’’ in subparagraph (A) and 

22 inserting ‘‘Act, or the Next Generation Air Trans23 portation System Financing Reform Act of 2007;’’. 

24 (b) CONFORMING AMENDMENT.—Paragraph (2) of 

25 section 9502(f) of theInternal Revenue Code of 1986 is 


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1 amended by striking ‘‘October 1, 2007,’’and inserting 

2 ‘‘October 1, 2017,’’. 

Æ 


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