I 

110TH CONGRESS 

1ST SESSION H. R. 1356 

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 HOUSE OF REPRESENTATIVES 

MARCH 6, 2007 

Mr. OBERSTAR (for himself, Mr. MICA, Mr. COSTELLO, and Mr. PETRI) (all 

by request) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Science and Technology, and Ways and Means, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

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, 

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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Next Generation Air Transportation System Financing 

4 Reform Act of 2007’’. 

5 (b) TABLE OF CONTENTS.— 

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 takeover 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 

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Sec. 401. Air Transportation System Advisory Board. 

Sec. 402. Facilitation of Next Generation air traffic services. 

Sec. 403. Clarification of authority to enter into reimbursable agreements. 

Sec. 404. Definition of air navigation facility. 

Sec. 405. Improved management of property inventory. 

Sec. 406. Clarification to acquisition reform authority. 

Sec. 407. Assistance to foreign aviation authorities. 

Sec. 408. Presidential Rank Award Program. 

Sec. 409. Realignment and consolidation of aviation facilities and services. 

Sec. 410. Operational and approach procedures by third parties through delegation. 

Sec. 411. Judicial review of denial of airman certificates. 

Sec. 412. Release of data relating to abandoned type certificates and supplemental type certificates. 

Sec. 413. Design Organization Certificates. 

Sec. 414. Contract tower program. 

Sec. 415. Enhanced Oversight of Next Generation Air Transportation System 

Joint Planning and Development office. 

TITLE V—AVIATION SAFETY, SECURITY, CAPACITY AND 

CONNECTIVITY IMPROVEMENTS 

Sec. 501. Disclosure of data to Federal agencies in interest of national security. 

Sec. 502. FAA access to criminal history records or database systems. 

Sec. 503. Allocation of operating authorizations at LaGuardia airport. 

Sec. 504. Pilot program for market-based mechanisms at congested airports. 

TITLE VI—ENVIRONMENTAL STEWARDSHIP AND STREAMLINING 

Sec. 601. Airport Cooperative Research Program. 

Sec. 602. State Block Grant Program. 

Sec. 603. Airport funding of special studies or reviews. 

Sec. 604. Environmental Mitigation Demonstration Pilot Program. 

Sec. 605. Grant eligibility for assessment of flight procedures. 

Sec. 606. Research consortium for lower energy, emissions and noise technology 

partnership. 

Sec. 607. Amendments to Air Tour Management Program. 

TITLE VII—AVIATION INSURANCE 

Sec. 701. General Authority. 

Sec. 702. Extension of authority to limit third party liability of air carriers 

arising out of acts of terrorism. 

Sec. 703. Clarification on reinsurance authority. 

Sec. 704. Use of independent claims adjusters. 

Sec. 705. Extension of aviation program authority. 

TITLE VIII—AVIATION SERVICE IMPROVMENTS 

Sec. 801. Extension of competitive access reports. 

Sec. 802. Essential air service reform. 

Sec. 803. Termination of DOT authority to set international mail rates. 

Sec. 804. Air carriage of international mail. 

Sec. 805. Contents of competition plans. 

Sec. 806. Airport privatization. 

Sec. 807. Clarification of air carrier fee disputes. 

Sec. 808. Amendments to chapter 415. 

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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. 

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: 

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1 ‘‘CHAPTER 482—AUTHORIZATIONS FOR 

2 AIR TRAFFIC FUNCTIONS, SAFETY 

3 AND OPERATIONS, AND RESEARCH 

4 AND DEVELOPMENT 

‘‘Sec. 

‘‘48201. Air Traffic Organization. 

‘‘48202. Safety and operations. 

‘‘48203. Civil aviation research and development. 

‘‘48204. General fund authorization. 

5 ‘‘§ 48201. Air Traffic Organization 

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

7 October 1, 2007, the Secretary of the Treasury shall es8 tablish on the books of the Treasury a separate account 

9 to be known as the ‘Air Traffic Organization’. 

10 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad11 dition to amounts from the general fund of the Treasury 

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

13 the following amounts may be appropriated to the Sec14 retary of Transportation out of the Airport and Airway 

15 Trust Fund established under section 9502 of the Internal 

16 Revenue Code of 1986 (26 U.S.C. 9502) for capital, oper17 ating and overhead costs of providing air traffic control 

18 and related services: 

19 ‘‘(1) $7,915,516,000 for fiscal year 2008; 

20 ‘‘(2) $1,130,000,000 for fiscal year 2009; and 

21 ‘‘(3) $1,126,000,000 for fiscal year 2010. 

22 ‘‘(c) USER FEES.—(1) In addition to amounts au23 thorized under subsection (b), amounts credited to the acmstockstill on PROD1PC66 with BILLS

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1 count established under subsection (a) from fees collected 

2 under section 45305 of this title are authorized to be used 

3 for capital, operating and overhead costs of providing air 

4 traffic control and related services, as well as for the costs 

5 related to the assessment and collection of these fees. 

6 ‘‘(2) Notwithstanding any other provision of law, 

7 amounts credited to the account established under sub8 section (a) shall be used only to carry out the air traffic 

9 functions of the Federal Aviation Administration. 

10 ‘‘(d) AVAILABILITY OF AMOUNTS.—Amounts appro11 priated under this section shall remain available until ex12 pended. 

13 ‘‘§ 48202. Safety and operations 

14 ‘‘(a) SAFETY AND OPERATIONS ACCOUNT.—On Oc15 tober 1, 2007, the Secretary of the Treasury shall estab16 lish on the books of the Treasury a separate account to 

17 be known as the ‘Safety and Operations’. 

18 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad19 dition to amounts from the general fund of the Treasury 

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

21 the following amounts may be appropriated to the Sec22 retary of Transportation out of the Airport and Airway 

23 Trust Fund established under section 9502 of the Internal 

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

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1 ministration’s safety programs, services to the commercial 

2 space industry and other staff support functions: 

3 ‘‘(1) $671,594,000 for fiscal year 2008; 

4 ‘‘(2) $69,000,000 for fiscal year 2009; and 

5 ‘‘(3) $69,000,000 for fiscal year 2010. 

6 ‘‘(c) USER FEES.—(1) Amounts credited to the ac7 count established under subsection (a) from fees collected 

8 under sections 45305 and 45306 of this title, are author9 ized to be used for programs, activities and services relat10 ing to the Federal Aviation Administration’s safety pro11 grams and other staff support functions, as well as for 

12 the costs related to the assessment and collection of these 

13 fees. 

14 ‘‘(2) Notwithstanding any other provision of law, 

15 amounts credited to the account established under sub16 section (a) shall be used only to carry out the safety pro17 grams, services to the commercial space industry, and 

18 staff support functions of the Federal Aviation Adminis19 tration. 

20 ‘‘(d) AVAILABILITY OF AMOUNTS.—Amounts appro21 priated under this section shall remain available until ex22 pended. 

23 ‘‘§ 48203. Civil aviation research and development 

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

25 the general fund of the Treasury as authorized in section 

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1 48204, not more than the following amounts may be ap2 propriated out of the Airport and Airway Trust Fund es3 tablished under section 9502 of the Internal Revenue Code 

4 of 1986 (26 U.S.C. 9502), to the Secretary of Transpor5 tation for conducting civil aviation research and develop6 ment under sections 44504, 44505, 44507, 44509, and 

7 44511–44513 of this title: 

8 ‘‘(1) $122,867,000 for fiscal year 2008; 

9 ‘‘(2) $174,000,000 for fiscal year 2009; and 

10 ‘‘(3) $174,000,000 for fiscal year 2010. 

11 ‘‘(b) AVAILABILITY OF AMOUNTS.—Amounts appro12 priated under this section shall remain available until ex13 pended. 

14 ‘‘§ 48204. General Fund Authorization 

15 ‘‘(a) Not more than the following amounts may be 

16 appropriated under this chapter from the general fund of 

17 the Treasury to the Secretary of Transportation for activi18 ties or services, the cost of which is not otherwise funded 

19 by fees established under chapter 453 of this title or by 

20 funds made available from the Airport and Airway Trust 

21 Fund, related to aviation safety regulation and oversight, 

22 research and development, air traffic services provided to 

23 military, public or air ambulance aircraft, operation of 

24 Flight Service Stations and Automated Flight Service Sta25 tions, operation of air traffic control towers at airports 

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

2 services to the commercial space industry, or other Fed3 eral Aviation Administration programs in the general pub4 lic interest, including the capital, operating, and overhead 

5 costs for such activities or services: 

6 ‘‘(1) $2,618,322,000 for fiscal year 2008; 

7 ‘‘(2) $2,582,000,000 for fiscal year 2009; and 

8 ‘‘(3) $2,582,000,000 for fiscal year 2010.’’. 

9 ‘‘(b) CONFORMING AMENDMENT.—The analysis of 

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

11 for chapter 482 to read as follows: 

‘‘482. Authorizations for air traffic functions, safety and operations, research and development and general fund ................... 48201.’’. 

12 SEC. 102. AIRPORT PLANNING AND DEVELOPMENT AND 

13 NOISE COMPATIBILITY PLANNING AND PRO14 GRAMS. 

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

16 (1) in the first sentence, by striking ‘‘The’’ and 

17 inserting ‘‘(a) AUTHORIZATION.—The’’; 

18 (2) by striking ‘‘September 30, 2003’’ and in19 serting ‘‘September 30, 2007’’; 

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

21 inserting the following: 

22 ‘‘(1) $2,750,000,000 for fiscal year 2008; 

23 ‘‘(2) $2,900,000,000 for fiscal year 2009; and 

24 ‘‘(3) $3,050,000,000 for fiscal year 2010.’’; and 

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1 (4) by inserting at the end the following: 

2 ‘‘(b) AIRPORT COOPERATIVE RESEARCH PRO3 GRAM.—Not more than $15,000,000 per year for fiscal 

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

5 Secretary of Transportation from the amounts made avail6 able each year under subsection (a) for the Airport Coop7 erative Research Program under section 44511 of this 

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

9 for research activities related to the airport environment, 

10 including reduction of community exposure to civil aircraft 

11 noise, reduction of civil aviation emissions, or addressing 

12 water quality issues.’’. 

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

14 is amended by striking ‘‘September 30, 2007’’ and insert15 ing ‘‘September 30, 2010’’. 

16 SEC. 103. AIRLINE DATA AND ANALYSIS. 

17 (a) AUTHORIZATION.—There is authorized to be ap18 propriated to the Secretary of Transportation out of the 

19 Airport and Airway Trust Fund established by section 

20 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 

21 9502), $4,000,000 per year for fiscal year 2008, and 

22 $6,000,000 for fiscal years 2009 and 2010 to fund airline 

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1 nology Administration of the Department of Transpor2 tation. 

3 (b) In fiscal year 2009, the Secretary shall reform, 

4 by the most efficient means available, the aviation eco5 nomic data program for the collection and dissemination 

6 of airline traffic and financial data. 

7 SEC. 104. OFFICE OF COMMERCIAL SPACE TRANSPOR8 TATION. 

9 Section 70119 is amended— 

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

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

12 inserting ‘‘2009; and’’; and 

13 (3) by inserting at the end: 

14 ‘‘(6) $15,224,000 for fiscal year 2010.’’. 

15 SEC. 105. TRANSITION. 

16 (a) AUTHORIZATION FOR TRANSITION PERIOD.—For 

17 the purpose of supporting the transition to a user fee sys18 tem of financing under chapter 453, not more than 

19 $1,360,000,000 is authorized to be appropriated to the 

20 Secretary of Transportation from the general fund of the 

21 Treasury to provide services for an initial period of sixty 

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

23 control and related fees) and 45306 (registration, certifi24 cation and related fees) are assessed. 

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

2 Federal Aviation Administration shall, subject to appro3 priation in advance, impose and collect a surcharge on the 

4 user fees established under sections 45305 and 45306 for 

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

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

7 the amount used for transition costs under this section. 

8 TITLE II—USER FEE AUTHORITY 

9 SEC. 201. FEES. 

10 (a) IN GENERAL.—Chapter 453 is amended by add11 ing at the end the following: 

12 ‘‘§ 45305. Air traffic control and related fees 

13 ‘‘(a) SCHEDULE OF FEES.—(1) Not later than the 

14 date of transition, the Administrator of the Federal Avia15 tion Administration shall establish fees for air traffic con16 trol and related activities, services, facilities and equip17 ment provided by, or on behalf of, the Administration in 

18 accordance with this section. Except as provided in sub19 section (c), owners or operators of aircraft in the national 

20 airspace system shall pay the fees assessed under this sec21 tion. The Administrator may establish separate fees for 

22 aircraft operating in terminal, enroute, or oceanic air23 space. 

24 ‘‘(2) For purposes of this section and section 45306, 

25 ‘date of transition’ means October 1, 2008. 

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

2 Administrator may establish interim fees for a period not 

3 to exceed one year after the date of transition, and may 

4 impose a surcharge on such fees in order to recover the 

5 full costs of services during the initial period of transition 

6 to user fees. The establishment of such interim fees would 

7 not be subject to the requirements of subsection (e)(2). 

8 ‘‘(4) In accordance with this section, the Adminis9 trator may periodically modify the fees established under 

10 this section either on the Administrator’s own initiative, 

11 based on the requirements of the agency or the users of 

12 the National Airspace System, or on a recommendation 

13 from the Board under subsection (e)(2) of this section. 

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

15 (1) EN ROUTE AND OCEANIC.—In establishing fees for 

16 aircraft operating in en route or oceanic airspace, includ17 ing fees for aircraft that operate in United States con18 trolled airspace but neither take off from, nor land in, the 

19 United States, the Administrator may base the fee on dis20 tance traveled, or on any other method that is consistent 

21 with the treaties and international agreements to which 

22 the United States is a party. 

23 ‘‘(2) TERMINAL AIRSPACE.—For aircraft operations 

24 in terminal airspace, the Administrator may establish a 

25 fee with the following elements: 

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1 ‘‘(A) for takeoffs and landings at airports with 

2 greater than 100,000 passenger boardings per year; 

3 ‘‘(B) that may be based on the weight of the 

4 aircraft; 

5 ‘‘(C) specifically for aircraft operating in ter6 minal airspace for a large hub airport, as defined by 

7 section 40102(a)(29); 

8 ‘‘(D) specifically for terminal airspace for a 

9 large hub airport that varies with the time of day, 

10 day of the week, or for a particular large hub airport 

11 if the Administrator determines— 

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

13 ‘‘(ii) that such congestion results in whole 

14 or in part from the limitation on the capacity 

15 of the large hub airport or airports; and 

16 ‘‘(iii) that establishing such a fee will help 

17 reduce delays in the national airspace system; 

18 and 

19 ‘‘(E) a fee that is different for nighttime oper20 ations than for daytime operations. 

21 ‘‘(3) QUANTITATIVE STANDARDS.—For the purpose 

22 of the determinations required by paragraphs (b)(2)(D), 

23 the Administrator shall issue quantitative standards for 

24 the levels of airspace and airport congestion, operating 

25 delays, effect of airport delay on national system delay, 

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1 and feasibility of increasing the capacity of a congested 

2 airport, and make such determinations in accordance with 

3 those standards. 

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

5 shall require the Administrator to take into account air6 craft altitude in establishing any fee for aircraft oper7 ations in terminal, en route or oceanic airspace. 

8 ‘‘(5) INCENTIVE FOR EQUIPAGE.—The Adminis9 trator may establish reduced fees for aircraft that are 

10 equipped with avionics whose use the Administrator deter11 mines would enhance the safety or efficiency of the Na12 tional Airspace System if the Administrator finds that 

13 such a fee structure would create an incentive for the pur14 chase and installation of such equipment. 

15 ‘‘(6) RELATION TO COSTS.—The fees established 

16 under this section shall be based on the costs to the Ad17 ministration of providing the air traffic control and related 

18 activities, services, facilities, and equipment using the 

19 available data derived from the agency’s cost accounting 

20 system and cost allocation system to users. For purposes 

21 of this section, the term ‘costs’ means those costs associ22 ated with the operation, maintenance, debt service, and 

23 overhead expenses of the services provided and the facili24 ties and equipment used in such services, including the 

25 projected costs for the period during which the services 

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1 will be provided, but shall not include the cost of providing 

2 services to aircraft described in subsection (c). 

3 ‘‘(7) RESERVE.—The fees that the Administrator es4 tablishes under this section may also include amounts suf5 ficient to cover the costs of providing air traffic control 

6 and related activities, services, facilities and equipment in 

7 the event that receipts are less than projected, whether 

8 such a shortfall is caused by a decrease in aircraft oper9 ations, delinquent payment of fees by any person, or for 

10 another comparable reason. 

11 ‘‘(8) ANNUAL REVIEW.—The Administrator shall 

12 provide for an annual independent review to validate that 

13 the agency used actual costs for the year, which were pre14 pared in accordance with generally accepted accounting 

15 principles, and compiled those costs in accordance with the 

16 agency’s documented cost allocation methodology. 

17 ‘‘(9) FEES CREDITED AS OFFSETTING COLLEC18 TIONS.—Any fee authorized to be collected under this sec19 tion shall, subject to appropriation made in advance— 

20 ‘‘(A) be credited as offsetting collections to the 

21 account established under section 48201(a) of this 

22 title; and 

23 ‘‘(B) be available to the Administrator for ex24 penditure only to pay the costs of activities and servmstockstill on PROD1PC66 with BILLS

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1 ices for which the fee is imposed, including the costs 

2 to determine, assess, review and collect the fee. 

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

4 Administrator may continue to assess and collect and 

5 spend fees established under this section during any pe6 riod in which the agency’s funding is provided under an 

7 Act providing continuing appropriations in lieu of the 

8 agency’s regular appropriations. 

9 ‘‘(c) EXCEPTIONS.—(1) MILITARY AND OTHER PUB10 LIC AIRCRAFT.—Fees may not be assessed under this sec11 tion for air traffic control and related services provided 

12 to military aircraft, public aircraft (as defined in section 

13 40102 of this subtitle), air ambulance aircraft, or to mili14 tary or non-commercial civil aircraft of a foreign govern15 ment. 

16 ‘‘(2) GENERAL AVIATION OPERATIONS.—Except for 

17 fees established for operations in terminal airspace for a 

18 large hub airport under subsection (b)(2), no fees may be 

19 established under this section for air traffic control and 

20 related services provided to aircraft operations using fuel 

21 for which a tax was paid under section 4081(a)(2) (except 

22 taxes paid at the rate specified in section 

23 4081(a)(2)(C)(i)) of title 26, United States Code. The ex24 ception provided by this subparagraph shall cease to be 

25 effective if the rate of tax for fuel under section 

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1 4081(a)(2) is lower than 70.0 cents per gallon, starting 

2 on the date of transition, except if the lower rate is the 

3 result of adjustments made under section 4081(a)(2) of 

4 title 26, United States Code. 

5 ‘‘(3) FLIGHT PLAN INFORMATION.—Any person re6 quired to file a flight plan with the Administration, includ7 ing operators of flights described in paragraphs (1) and 

8 (2), must specify in the plan whether the person is en9 gaged in an operation for compensation or hire, or a gen10 eral aviation operation, or a military or public aircraft op11 eration, for purposes of this section. 

12 ‘‘(4) CANADA TO CANADA FLIGHTS.—The Adminis13 trator may waive a fee that would otherwise be assessed 

14 under this chapter for flights that operate in U.S.-con15 trolled airspace but takeoff and land at an airport in Can16 ada without an intermediate stop outside Canada, if the 

17 Administrator determines that not assessing and collecting 

18 the fee for such flights would be in the public interest. 

19 ‘‘(d) ADMINISTRATIVE PROVISIONS.—(1) FEES PAY20 ABLE TO THE ADMINISTRATOR.—Fees assessed and 

21 amounts collected under this section are payable to the 

22 Administrator. The Administrator may refund any fee, or 

23 portion thereof, paid by mistake in excess of the amount 

24 required. 

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1 ‘‘(2) COLLECTION PROCEDURES.—The Adminis2 trator shall establish procedures for the collection of fees. 

3 These procedures shall establish the frequency of pay4 ment, deadlines for payment, a maximum amount of fees 

5 that may be outstanding on the account of any person, 

6 and such other limitations and conditions as the Adminis7 trator determines are necessary to obtain prompt payment 

8 of fees. 

9 ‘‘(3) FAILURE TO PAY REQUIRED FEES.—If the Ad10 ministrator determines that any person has failed to pay 

11 fees when due under this section, or to comply with any 

12 limitation or condition on payment under this section, or 

13 to provide the Administration with the correct information 

14 in the person’s flight plan or by other means regarding 

15 the nature of the flight, including whether the person en16 gaged in an operation for compensation or hire or general 

17 aviation operation, the Administrator may— 

18 ‘‘(A) assess interest charges, using a rate equal 

19 to 150 percent of a rate determined by the Secretary 

20 of the Treasury based on the average of bond equiv21 alent yields on 13-week Treasury bills auctioned dur22 ing the previous calendar quarter, to be redeter23 mined quarterly, on amounts that have not been 

24 paid by the deadline; 

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1 ‘‘(B) change the required payment schedule for 

2 such person; 

3 ‘‘(C) offset any amount of fees owed by with4 holding any payment otherwise owed or due to the 

5 person by the Secretary or the Administrator; 

6 ‘‘(D) upon 24 hours notice, terminate, reduce, 

7 or withhold the provision of non-emergency air traf8 fic control and related services to such person, ex9 cept that, in any case involving a foreign air carrier, 

10 the Administrator shall take such actions as are nec11 essary to comply with applicable international agree12 ments; or 

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

14 amounts remain unpaid, or take other appropriate 

15 enforcement action under this subtitle. 

16 ‘‘(4) ACTION WHEN FUTURE PAYMENT IN JEOP17 ARDY.—If the Administrator reasonably determines that 

18 an aircraft owner or operator will not pay its required fees 

19 when due, the Administrator may— 

20 ‘‘(A) change the required payment schedule for 

21 such person; or 

22 ‘‘(B) upon 24 hours notice, terminate, reduce, 

23 or withhold the provision of non-emergency air traf24 fic control and related services to such person, ex25 cept that, in any case involving a foreign air carrier, 

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1 the Administrator shall take such actions as are nec2 essary to comply with applicable international agree3 ments. 

4 ‘‘(5) PAYMENT NOT STAYED PENDING REVIEW.—In 

5 any case where a person seeks administrative review of 

6 the Administrator’s action under this section, the collec7 tion of fees from that person may not be stayed pending 

8 resolution of the case. 

9 ‘‘(e) CONSULTATION REQUIREMENTS; APPROVAL OF

10 FEES.—(1) Prior to establishing or modifying fees under 

11 this section or section 45306 of this title, the Adminis12 trator shall consult with air carriers, including foreign air 

13 carriers, consistent with international agreements, and 

14 any other persons subject to such fees, and any other 

15 member of the public who wishes to file comments. For 

16 purposes of the section, ‘consult’ means to afford the op17 portunity to provide comments to, and have such com18 ments considered by, the Administrator. 

19 ‘‘(2) Prior to establishing or modifying fees under 

20 this section or section 45306 of this title, the Adminis21 trator shall consult with and seek the recommendations 

22 of the type and level of such fees from the Air Transpor23 tation System Advisory Board (hereinafter ‘the Board’) 

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

25 may, from time to time, recommend that the Adminismstockstill on PROD1PC66 with BILLS

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1 trator modify established fees based on the needs of the 

2 agency or the users of the National Airspace System. If 

3 the Board fails to recommend approval of any fee pro4 posed by the Administrator, or if the Administrator fails 

5 to adopt the recommendation of the Board, the Adminis6 trator may establish or maintain such fees only after pub7 lishing in the Federal Register a written determination 

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

10 views of the Board. 

11 ‘‘(3) Any person who is subject to fees established 

12 in this section or section 45306 of this title, and who ob13 jects to the establishment or amount of such fees may ap14 peal that decision exclusively to the Secretary of Transpor15 tation. The Secretary may disapprove the establishment 

16 or modification of fees if the Secretary finds that the 

17 fees— 

18 ‘‘(A) are not, in the case of fees under this sec19 tion, based on costs as described in subsection 

20 (b)(6); 

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

22 users who pay fees; 

23 ‘‘(C) unreasonably discriminate against a par24 ticular category of users of the system; or 

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1 ‘‘(D) are not in accordance with the strategic 

2 plan of the Administration. 

3 ‘‘(4) The decision of the Administrator to establish 

4 or modify a fee or schedule of fees under this section or 

5 section 45306 of this title shall be effective unless dis6 approved by the Secretary within 60 days after submission 

7 of the Administrator’s decision to the Secretary. The deci8 sion of the Secretary constitutes final agency action and 

9 is not subject to judicial review. 

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

11 specified, nothing in this section or section 45306 shall 

12 be construed as affecting fees previously authorized and 

13 established under this chapter. 

14 ‘‘(g) EXEMPTION FROM RULEMAKING.—The require15 ments applicable to developing and issuing rules under 

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

17 of the Secretary, Administrator, or Board under this sec18 tion. 

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

20 2006 data, the Administrator shall publish a list of air21 ports that meet the criteria for a large hub airport under 

22 subsection (b)(2). The Administrator shall periodically up23 date such list. If in the fiscal year during which the list 

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

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

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1 for a large hub airport under subsection (b)(2), such air2 port shall be deemed to remain in such status for three 

3 years regardless of fluctuation in the passenger boardings 

4 during that time. 

5 ‘‘(i) DEFINITIONS.—For the purposes of this sec6 tion— 

7 ‘‘(1) ‘Air ambulance aircraft’ means— 

8 ‘‘(A) rotorcraft, which are engaged in an 

9 operation to provide emergency medical serv10 ices; or 

11 ‘‘(B) fixed-wing aircraft, which are 

12 equipped for and exclusively dedicated to pro13 viding acute care medical services. 

14 ‘‘(2) ‘enroute airspace’ means airspace encom15 passing Class A and Class E airspace listed in part 

16 71 of title 14 of the Code of Federal Regulations 

17 and subpart B of Federal Aviation Administration 

18 Order 7400.9N or a successor order; 

19 ‘‘(3) ‘terminal airspace’ means airspace encom20 passing Class B, Class C and Class D airspace listed 

21 in part 71 of title 14 of the Code of Federal Regula22 tions and subpart B of Federal Aviation Administra23 tion Order 7400.9N or a successor order. 

24 ‘‘(4) ‘oceanic airspace’ means U.S. controlled 

25 airspace over an ocean. 

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1 ‘‘§ 45306. Registration, certification and related fees 

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

3 date of transition, the Administrator shall establish the 

4 following fees for the following services or activities: 

5 ‘‘(1) $130 for registering an aircraft. 

6 ‘‘(2) $45 for replacing an aircraft registration. 

7 ‘‘(3) $130 for issuing an original dealer’s air8 craft certificate. 

9 ‘‘(4) $105 for issuing an additional aircraft cer10 tificate. 

11 ‘‘(5) $80 for issuing a special registration num12 ber. 

13 ‘‘(6) $50 for issuing a renewal of a special reg14 istration number. 

15 ‘‘(7) $130 for recording a security interest. 

16 ‘‘(8) $130 for recording a security interest in 

17 aircraft parts. 

18 ‘‘(9) $50 for issuing an airman certificate. 

19 ‘‘(10) $25 for issuing a replacement airman 

20 certificate. 

21 ‘‘(11) $42 for issuing an airman medical certifi22 cate. 

23 ‘‘(12) $100 for providing legal title opinions 

24 pertaining to aircraft transactions. 

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

2 (1) The Administrator shall establish fees for the following 

3 services or activities: 

4 ‘‘(A) The appointment of a designee (other than 

5 designated medical examiners). 

6 ‘‘(B) The appointment of delegated organiza7 tions. 

8 ‘‘(C) The training of a designee. 

9 ‘‘(D) The issuance of a certificate to a flight 

10 school under Part 141 of title 14 of the Code of 

11 Federal Regulations. 

12 ‘‘(E) The issuance of a certificate to a training 

13 center under Part 142 of title 14 of the Code of 

14 Federal Regulations. 

15 ‘‘(F) The issuance of a certificate to a large do16 mestic repair station under part 145 of title 14 of 

17 the Code of Federal Regulations. 

18 ‘‘(G) The issuance of a certificate to a medium 

19 domestic repair station under part 145 of title 14 of 

20 the Code of Federal Regulations. 

21 ‘‘(H) The issuance of a certificate to a small 

22 domestic repair station under part 145 of title 14 of 

23 the Code of Federal Regulations. 

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1 ‘‘(I) The issuance of a certificate to a large for2 eign repair station under part 145 of title 14 of the 

3 Code of Federal Regulations. 

4 ‘‘(J) The issuance of a certificate to a medium 

5 foreign repair station under part 145 of title 14 of 

6 the Code of Federal Regulations. 

7 ‘‘(K) The issuance of a certificate to a small 

8 foreign repair station under part 145 of title 14 of 

9 the Code of Federal Regulations. 

10 ‘‘(L) The issuance of a certificate to a mainte11 nance technical school under part 147 of title 14 of 

12 the Code of Federal Regulations. 

13 ‘‘(M) Training provided to foreign aviation au14 thorities. 

15 ‘‘(2) RELATION TO COSTS.—The fees that the Ad16 ministrator establishes and assesses under this section, 

17 shall be based on the costs to the Administration of pro18 viding such activities and services using the available data 

19 derived from the agency’s cost accounting system and cost 

20 allocation system to users. For purposes of this section, 

21 the term ‘costs’ shall mean those costs associated with 

22 capital, operation and maintenance, and overhead, includ23 ing the projected costs for the period during which the 

24 services are provided. 

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1 ‘‘(c) FEES FOR OTHER SERVICES.—The Adminis2 trator may establish and collect such additional fees as 

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

4 regulation, and related services not enumerated in sub5 section (b), including any additional cost of providing serv6 ices outside the United States. 

7 ‘‘(d) FEES CREDITED AS OFFSETTING COLLEC8 TIONS.—(1) Any fee authorized to be collected under this 

9 section shall, subject to appropriation made in advance— 

10 ‘‘(A) be credited as offsetting collections to the 

11 account established under section 48202(a) of this 

12 title; and 

13 ‘‘(B) be available for expenditure only to pay 

14 the costs of activities and services for which the fee 

15 is imposed, including the costs to determine, assess, 

16 review and collect the fee. 

17 ‘‘(2) The Administrator may continue to assess and 

18 collect and spend fees established under this section dur19 ing any period in which the agency’s funding is provided 

20 under an Act providing continuing appropriations in lieu 

21 of the agency’s regular appropriations. 

22 ‘‘(e) ADJUSTMENTS.—The Administrator shall peri23 odically adjust the fees established by subsections (a) or 

24 (b) in the following circumstances— 

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1 ‘‘(1) to account for changes in the Consumer Price 

2 Index of All Urban Consumers published by the Secretary 

3 of Labor; 

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

5 service is higher or lower than the cost data that was used 

6 to establish the fee then in effect; or 

7 ‘‘(3) when the Board recommends an adjustment in 

8 the fees, in accordance with the procedures under sub9 section (g). 

10 ‘‘(f) ADMINISTRATIVE PROVISIONS.—(1) FEES PAY11 ABLE TO THE ADMINISTRATOR.—All fees assessed and 

12 amounts collected under this section are payable to the 

13 Administrator. The Administrator may refund any fee, or 

14 portion thereof, paid by mistake in excess of the amount 

15 required. 

16 ‘‘(2) COLLECTION PROCEDURES.—The Adminis17 trator shall establish procedures for the collection of fees. 

18 These procedures shall establish the frequency of pay19 ment, deadlines for payment, a maximum amount of fees 

20 that may be outstanding on the account of any person, 

21 and such other limitations and conditions as the Adminis22 trator determines are necessary to obtain prompt payment 

23 of fees. 

24 ‘‘(3) FAILURE TO PAY REQUIRED FEES.—If the Ad25 ministrator determines that any person has failed to pay 

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1 fees when due under this section or to comply with any 

2 limitation or condition on payment under this section, the 

3 Administrator may— 

4 ‘‘(A) assess interest charges, using a rate equal 

5 to 150 percent of a rate determined by the Secretary 

6 of the Treasury based on the average of bond equiv7 alent yields on 13-week Treasury bills auctioned dur8 ing the previous calendar quarter, to be redeter9 mined quarterly, on amounts that have not been 

10 paid by the deadline; 

11 ‘‘(B) change the required payment schedule for 

12 such person; 

13 ‘‘(C) upon 24 hours notice to the person, termi14 nate, reduce or withhold non-emergency services or 

15 in any case involving a foreign air carrier, the Ad16 ministrator shall take such actions as are necessary 

17 to comply with applicable international agreements; 

18 or 

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

20 amounts remain unpaid, or take other appropriate 

21 enforcement action under this subtitle. 

22 ‘‘(4) ACTION WHEN FUTURE PAYMENT IN JEOP23 ARDY.—If the Administrator reasonably determines that 

24 a person will not pay its required fees when due, the Ad25 ministrator may— 

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1 ‘‘(A) change the required payment schedule for 

2 such person; or 

3 ‘‘(B) upon 24 hours notice, terminate, reduce, 

4 or withhold non-emergency services to such person, 

5 except that, in any case involving a foreign air car6 rier, the Administrator shall take such actions as are 

7 necessary to comply with applicable international 

8 agreements. 

9 ‘‘(5) PAYMENT NOT STAYED PENDING REVIEW.—In 

10 any case where a person seeks administrative review of 

11 the Administrator’s action under this section, the collec12 tion of fees from that person may not be stayed pending 

13 resolution of the case. 

14 ‘‘(g) PROCEDURE FOR IMPOSITION OF FEES.—In es15 tablishing or modifying fees under this section, the proce16 dures and requirements of section 45305(e) of this title 

17 shall apply. 

18 ‘‘(h) EXEMPTION FROM RULEMAKING.—The require19 ments applicable to developing and issuing rules under 

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

21 of the Secretary, Administrator, or Board under this sec22 tion. 

23 ‘‘§ 45307. Rules of construction 

24 ‘‘Notwithstanding any other law, the fees computed, 

25 established, assessed, modified or approved under this 

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1 chapter shall be governed by the provisions of this chapter 

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

3 ‘‘§ 45308. Borrowing authority 

4 ‘‘(a) IN GENERAL.—(1) In order to support the tran5 sition to the Next Generation Air Transportation System, 

6 in fiscal years 2013 through 2017 the Secretary of Trans7 portation is authorized to issue obligations to the Sec8 retary of the Treasury to finance capital investments in 

9 the facilities and equipment of the air traffic control sys10 tem to be owned and operated by the Federal Aviation 

11 Administration. The Secretary of the Treasury, in the Sec12 retary’s discretion, may purchase any such obligations, 

13 provided that the Secretary first determines that there is 

14 reasonable assurance of repayment of such obligations. 

15 ‘‘(2) The Secretary shall not issue any obligations 

16 under paragraph (1) without first obtaining approval by 

17 the Director of the Office of Management and Budget of 

18 the issuance of such obligations and proposed investments 

19 to be financed. 

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

21 Obligations issued under this section shall be in such 

22 forms and denominations, bear such maturities, and shall 

23 be subject to such terms and conditions as may be pre24 scribed by the Secretary of the Treasury. The aggregate 

25 amount of all such obligations shall not exceed 

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1 $5,000,000,000 and all obligations shall be repaid by the 

2 Secretary of Transportation by the end of fiscal year 

3 2017. 

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

5 obligations under paragraph (1), the Secretary of Trans6 portation shall increase the user fees authorized in sec7 tions 45305 and 45306 in each of the fiscal years 2013 

8 to 2017 in the amounts required to repay such obligations 

9 with interest, and such payments shall have first priority 

10 in the use of fees collected during this period. This in11 crease in user fees shall not be treated as discretionary 

12 offsetting collections and shall only be used to repay the 

13 obligations incurred under paragraph (1). 

14 ‘‘(d) INTEREST RATE.—The interest rate on obliga15 tions issued under this section shall be a rate determined 

16 by the Secretary of the Treasury, taking into consideration 

17 the current market yields on outstanding marketable obli18 gations of the United States of comparable maturity, plus 

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

20 to be sufficient to cover any potential losses and the ad21 ministrative costs associated with the obligations. Any sur22 charges for administrative costs collected by the Secretary 

23 of the Treasury shall be credited to the appropriation ac24 count which incurred the cost. 

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

2 of purchasing obligations under subsection (a), the Sec3 retary of the Treasury may use as a public debt trans4 action the proceeds from the sale of any securities issued 

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

6 purposes for which securities may be issued under such 

7 chapter are extended to include any purchase of such obli8 gations under this subsection.’’. 

9 (b) CONFORMING AMENDMENT.— 

10 (1) The analysis of chapter 453 is amended— 

11 (A) by inserting in the title after ‘‘FEES’’, 

12 ‘‘AND FINANCING’’; 

13 (B) by adding at the end the following: 

‘‘45305. Air traffic control and related fees. 

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

‘‘45307. Rules of construction. 

‘‘45308. Borrowing authority.’’. 

14 (2) The analysis of Part A of subtitle VII is 

15 amended by revising the entry for chapter 453 to 

16 read as follows: 

‘‘453. FEES AND FINANCING ............................................45301 (reserved)’’. 

17 SEC. 202. CONFORMING AMENDMENTS. 

18 (a) CIVIL PENALTIES.—Section 46301 is amended— 

19 (1) in paragraph (a)(1)(A), by inserting ‘‘chap20 ter 453,’’ before ‘‘section 47107(b)’’; and 

21 (2) in paragraph (a)(5), by 

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1 (A) striking ‘‘or chapter 449’’ and insert2 ing ‘‘chapter 449’’; and 

3 (B) striking ‘‘44907–44909)’’ and insert4 ing ‘‘44907–44909), or chapter 453’’. 

5 (b) FEES FOR OVERFLIGHTS, FOREIGN SERVICES

6 AND SERVICES TO GENERAL AVIATION.—Effective Octo7 ber 1, 2008, sections 45301 and 45302 are repealed. 

8 (c) ADMINISTRATIVE PROVISIONS.—Effective Octo9 ber 1, 2008, in section 45303— 

10 (1) subsections (a), (b) and (c) are repealed; 

11 and 

12 (2) subsections (d), (e) and (f) are redesignated 

13 as (a), (b) and (c) respectively. 

14 TITLE III—AIRPORT IMPROVE15 MENT PROGRAM AMEND16 MENTS 

17 SEC. 301. REFORM OF PASSENGER FACILITY CHARGE AU18 THORITY. 

19 (a) BROADENING ELIGIBILITY.—(1) Section 40117 

20 is amended— 

21 (A) in the title, by striking ‘‘fees’’ and inserting 

22 ‘‘charges’’; 

23 (B) in subsection (a)(3), by striking paragraphs 

24 (A) through (G) and inserting: 

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1 ‘‘(A) A project for capital costs of the air2 port or local airport system under section 

3 47107(b)(1)(A) and (B). 

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

5 facility that is directly and substantially related 

6 to air transportation of passengers or property 

7 and that is available for public use under sec8 tion 47107(b)(1)(C).’’; 

9 (C) by revising paragraph (a)(4) to read as fol10 lows: 

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

12 The term ‘intermodal ground access project’ means 

13 a local facility that is directly and substantially re14 lated to the movement of passengers or property in 

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

16 section 5302 of this title), that is a component of a 

17 fixed guideway system that provides transportation 

18 services to the general public or that connects to 

19 such a fixed guideway system.’’; 

20 (D) in paragraph (a)(5), by striking ‘‘FEE’’ or 

21 ‘‘fee’’ each time it appears and inserting 

22 ‘‘CHARGE’’ or ‘‘charge’’, respectively; 

23 (E) in paragraph (a)(6), by striking ‘‘fee.’’ and 

24 inserting ‘‘charge.’’. 

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1 (2) CONFORMING AMENDMENTS.—(A) Section 

2 47107(b)(1)(C) is amended to read as follows: 

3 ‘‘(C) any other local facility that is directly 

4 and substantially related to air transportation 

5 of passengers or property and that is available 

6 for public use.’’. 

7 (B) Section 47133(a)(3) is amended to read as fol8 lows: 

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

10 substantially related to air transportation of pas11 sengers or property and that is available for public 

12 use.’’. 

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

14 40117(b) is amended— 

15 (1) in paragraph (1)— 

16 (A) by striking ‘‘The Secretary of Trans17 portation may authorize under this section an 

18 eligible agency to’’ and inserting ‘‘An eligible 

19 agency may’’; 

20 (B) by striking ‘‘fee’’ both times it appears 

21 and inserting ‘‘charge’’; 

22 (C) by striking ‘‘or $3’’ and inserting ‘‘$3, 

23 $4, $4.50, $5, $6’’; and 

24 (D) by inserting at the end, ‘‘An eligible 

25 agency that is approved by the Administrator to 

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1 participate in the pilot program established 

2 under section 44518 of this title may impose a 

3 passenger facility charge of $7.’’; 

4 (2) in paragraph (2), by inserting ‘‘directly or 

5 indirectly’’ before ‘‘regulate’’; 

6 (3) in paragraph (3), by striking ‘‘fee’’ and in7 serting ‘‘charge’’; and 

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

9 (c) PASSENGER FACILITY CHARGE STREAM10 LINING.—Section 40117(c) is revised to read as follows: 

11 ‘‘(c) PROCEDURAL REQUIREMENTS FOR IMPOSITION

12 OF PASSENGER FACILITY CHARGE.—(1) An eligible agen13 cy must submit to those air carriers and foreign air car14 riers operating at the airport with a significant business 

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

16 and make available to the public annually a report, in the 

17 form required by the Secretary, on the status of the eligi18 ble agency’s passenger facility fee program, including the 

19 following: 

20 ‘‘(A) the total amount of program revenue held 

21 by the agency at the beginning of the twelve months 

22 covered by the report; 

23 ‘‘(B) the total amount of program revenue col24 lected by the agency during the period covered by 

25 the report; 

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1 ‘‘(C) the amount of expenditures with program 

2 revenue made by the agency on each eligible airport3 related project during the period covered by the re4 port; 

5 ‘‘(D) each airport-related project for which the 

6 agency plans to collect and use program revenue 

7 during the next twelve-month period covered by the 

8 report, including the amount of revenue projected to 

9 be used for such project; 

10 ‘‘(E) the level of program revenue the agency 

11 plans to collect during the next twelve-month period 

12 covered by the report; 

13 ‘‘(F) a description of the notice and consulta14 tion process with air carriers and foreign air carriers 

15 under paragraph (3), and with the public under 

16 paragraph (4), including a copies of any adverse 

17 comments received and how the agency responded; 

18 and 

19 ‘‘(G) any other information on the program 

20 that the Secretary may require. 

21 ‘‘(2) IMPLEMENTATION.—Subject to the require22 ments of paragraphs (3) and (4), (5) and (6), the eligible 

23 agency may implement the planned collection and use of 

24 passenger facility charges in accordance with its report 

25 upon filing the report as required in paragraph (1). 

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1 ‘‘(3) CONSULTATION WITH CARRIERS FOR NEW

2 PROJECTS.—(A) An eligible agency proposing to collect or 

3 use passenger facility charge revenue for a project not pre4 viously approved by the Secretary or not included in a re5 port required by paragraph (1) that was submitted in a 

6 prior year, or an eligible agency proposing to increase the 

7 level of the passenger facility charge to be collected at the 

8 airport, must provide to air carriers and foreign air car9 riers operating at the airport reasonable notice, and an 

10 opportunity to comment on the planned collection and use 

11 of program revenue before providing the report required 

12 under paragraph (1). The Secretary shall prescribe by reg13 ulation what constitutes reasonable notice under this para14 graph, which shall at a minimum include— 

15 ‘‘(i) that the eligible agency provide to air car16 riers and foreign air carriers operating at the airport 

17 written notice of the planned collection and use of 

18 passenger facility charge revenue; 

19 ‘‘(ii) that the notice include a full description 

20 and justification for a proposed project; 

21 ‘‘(iii) a detailed financial plan for the proposed 

22 project; and 

23 ‘‘(iv) the proposed level for the passenger facil24 ity charge. 

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1 ‘‘(B) An eligible agency providing notice and an op2 portunity for comment shall be deemed to have satisfied 

3 the requirements of this paragraph if the eligible agency 

4 provides such notice to air carriers and foreign air carriers 

5 that have a significant business interest at the airport. For 

6 purposes of this paragraph, the term ‘‘significant business 

7 interest’’ means an air carrier or foreign air carrier that— 

8 ‘‘(i) had not less than 1.0 percent of passenger 

9 boardings at the airport in the prior calendar year; 

10 ‘‘(ii) had at least 25,000 passenger boardings at 

11 the airport in the prior calendar year; or 

12 ‘‘(iii) provides scheduled service at the airport. 

13 ‘‘(C) Not later than 45 days after written notice is 

14 provided under subparagraph (A), each air carrier and 

15 foreign air carrier may provide written comments to the 

16 eligible agency indicating its agreement or disagreement 

17 with the project or, if applicable, the proposed level for 

18 a passenger facility charge. 

19 ‘‘(D) The eligible agency may include, as part of the 

20 notice and comment process, a consultation meeting to 

21 discuss the proposed project or, if applicable, the proposed 

22 level for a passenger facility charge. If the agency provides 

23 a consultation meeting, the written comments specified in 

24 subparagraph (C) shall be due not later than 30 days after 

25 the meeting. 

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1 ‘‘(4) PUBLIC NOTICE AND COMMENT.—(A) An eligi2 ble agency proposing to collect or use passenger facility 

3 charge revenue for a project not previously approved by 

4 the Secretary or not included in a report required by para5 graph (1) that was filed in a prior year, or an eligible 

6 agency proposing to increase the level of the passenger fa7 cility charge to be collected, must provide reasonable no8 tice and an opportunity for public comment on the planned 

9 collection and use of program revenue before providing the 

10 report required in paragraph (1). 

11 ‘‘(B) The Secretary shall prescribe by regulation 

12 what constitutes reasonable notice under this paragraph, 

13 which shall at a minimum require— 

14 ‘‘(i) that the eligible agency provide public no15 tice of intent to collect a passenger facility charge so 

16 as to inform those interested persons and agencies 

17 that may be affected; 

18 ‘‘(ii) appropriate methods of publication, which 

19 may include notice in local newspapers of general 

20 circulation or other local media, or posting of the no21 tice on the agency’s internet website; and 

22 ‘‘(iii) submission of public comments no later 

23 than 45 days after the date of the publication of the 

24 notice. 

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1 ‘‘(5) OBJECTIONS.—(A) Any interested person may 

2 file with the Secretary a written objection to a proposed 

3 project or to a proposed increase in the level of a pas4 senger facility charge included in a notice under this para5 graph provided that the filing is made within 30 days after 

6 submission of the report specified in paragraph (1). 

7 ‘‘(B) The Secretary shall provide not less than 30 

8 days for the eligible agency to respond to any filed objec9 tion. 

10 ‘‘(C) Not later than 90 days after receiving the eligi11 ble agency’s response to a filed objection, the Secretary 

12 shall make a determination whether or not to terminate 

13 authority to collect the passenger facility charge for the 

14 project or at the increased level, based on the filed objec15 tion. The Secretary shall state the reasons for any deter16 mination. The Secretary may only terminate authority 

17 if— 

18 ‘‘(i) the project is not an eligible airport related 

19 project; 

20 ‘‘(ii) the eligible agency has not complied with 

21 the requirements of this section or the Secretary’s 

22 implementing regulations in proposing the project; 

23 ‘‘(iii) the eligible agency has been found to be 

24 in violation of section 47107(b) of this title and has 

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1 failed to take corrective action, prior to the filing of 

2 the objection; or 

3 ‘‘(iv) in the case of a proposed increase in the 

4 passenger facility charge level, the level is not au5 thorized by this section. 

6 ‘‘(D) Upon issuance of a decision terminating author7 ity, the public agency shall prepare an accounting of pas8 senger facility revenue collected under the terminated au9 thority and restore the funds for use on other authorized 

10 projects. 

11 ‘‘(E) Except as provided in paragraph (C), the eligi12 ble agency may implement the planned collection and use 

13 of a passenger facility charge in accordance with its report 

14 upon filing the report as specified in paragraph (1)(A). 

15 ‘‘(6) APPROVAL REQUIREMENT FOR INTERMODAL

16 GROUND ACCESS PROJECT.—(A) An eligible agency may 

17 not collect or use a passenger facility charge to finance 

18 an intermodal ground access project, unless the project is 

19 first approved by the Secretary in accordance with this 

20 paragraph. 

21 ‘‘(B) The eligible agency may submit to the Secretary 

22 an application for authority to impose a passenger facility 

23 charge for an intermodal ground access project. The appli24 cation shall contain information and be in the form that 

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1 imum, must include copies of any comments received by 

2 the agency during the comment period described by sub3 paragraph (C). 

4 ‘‘(C) Before submitting an application under this 

5 paragraph, an eligible agency must provide air carriers 

6 and foreign air carriers operating at the airport, and the 

7 public, reasonable notice of and an opportunity to com8 ment on a proposed intermodal ground access project. 

9 Such notice and opportunity to comment shall conform to 

10 the requirements of paragraphs (3) and (4). 

11 ‘‘(D) After receiving an application, the Secretary 

12 may provide air carriers, foreign air carriers and other in13 terested persons notice and an opportunity to comment 

14 on the application. The Secretary shall make a final deci15 sion on the application not later than 120 days after re16 ceiving it.’’. 

17 (d) CONFORMING CHANGES.—(1) CORRECTION.—In 

18 subsections (d) through (m) of section 40117, by— 

19 (A) striking ‘‘fee’’ or ‘‘fees’’ wherever the terms 

20 appear and inserting ‘‘charge’’ or ‘‘charges’’, respec21 tively; and 

22 (B) striking ‘‘FEE’’ or ‘‘FEES’’ wherever the 

23 terms appear and inserting ‘‘CHARGE’’ or 

24 ‘‘CHARGES’’, respectively. 

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1 (2) LIMITATIONS ON APPROVING APPLICATIONS.— 

2 Section 40117(d) is amended— 

3 (A) in the first sentence, by striking ‘‘sub4 section (c) of this section to finance a specific’’ and 

5 inserting ‘‘subsection (c)(6) of this section to finance 

6 an intermodal ground access’’; 

7 (B) in paragraph (1), by— 

8 (i) striking ‘‘fee’’ and inserting ‘‘charge’’; 

9 and 

10 (ii) striking ‘‘specific’’; 

11 (C) by revising paragraph (2) to read as fol12 lows: 

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

14 project; and’’; 

15 (D) in paragraph (3), by striking ‘‘each of the 

16 specific projects; and’’ and inserting ‘‘the project.’’; 

17 and 

18 (E) by striking paragraph (4). 

19 (3) LIMITATIONS ON IMPOSING FEES.—Section 

20 40117(e)(1) is amended to read as follows: 

21 ‘‘An eligible agency may impose a passenger fa22 cility charge only subject to terms the Secretary may 

23 prescribe to carry out the objectives of this section.’’. 

24 (4) LIMITATIONS ON CONTRACTS, LEASES, AND USE

25 AGREEMENTS.—Section 40117(f)(2) is amended— 

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1 (A) by striking ‘‘long-term’’; and 

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

3 ‘‘Secretary, except a project for replacement of bag4 gage conveyor systems and reconfiguration of ter5 minal baggage areas that the Secretary determines 

6 are necessary to install bulk explosive detection de7 vices.’’. 

8 (5) COMPLIANCE.—Section 40117(h) is amended— 

9 (A) by inserting a new paragraph (3) as fol10 lows: 

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.’’; and 

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1 (B) by redesignating paragraph (3) as para2 graph (4). 

3 (6) PILOT PROGRAM FOR PFC AT NONHUB AIR4 PORTS.—Section 40117(l) is amended— 

5 (A) in paragraph (2), by striking ‘‘(c)(2)’’ and 

6 inserting ‘‘(c)(3)’’; and 

7 (B) in paragraph (7), by striking ‘‘date that is 

8 3 years after the date of issuance of regulations to 

9 carry out this subsection.’’ and inserting ‘‘date of 

10 issuance of regulations to carry out subsection (c) of 

11 this section, as amended by the Next Generation Air 

12 Transportation System Financing Reform Act of 

13 2007.’’. 

14 (7) PROHIBITION ON APPROVING PFC APPLICA15 TIONS FOR AIRPORT REVENUE DIVERSION.—Section 

16 47111(e) is amended in the first sentence by striking from 

17 ‘‘sponsor, and withhold approval of any new application 

18 to impose a fee under section 40117.’’ through the end 

19 of the subsection, and inserting ‘‘sponsor. A sponsor shall 

20 not propose collection or use of passenger facility charges 

21 for any new projects under section 40117(c)(3)–(6) unless 

22 the Secretary determines that the sponsor has taken cor23 rective action to address the violation and the violation 

24 no longer exists.’’. 

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1 SEC. 302. AMENDMENTS TO AIP DEFINITIONS. 

2 Section 47102 is amended— 

3 (1) in subsection (3), 

4 (A) in clause (B)(iv), by striking ‘‘20’’ and 

5 inserting ‘‘9’’; and 

6 (B) by adding at the end, the following: 

7 ‘‘(M) construction of mobile refueler park8 ing within a fuel farm at a nonprimary airport 

9 meeting the requirements of section 112.8 of 

10 title 40 of the Code of Federal Regulations. 

11 ‘‘(N) terminal development subject to the 

12 provisions of section 47119.’’. 

13 (2) by inserting the following new paragraph 

14 (8) and redesignating paragraphs (8) through (22) 

15 as paragraphs (9) through (23), respectively: 

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

17 airport in a State that the Secretary determines— 

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

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

20 2,500 passenger boardings each year.’’; 

21 (3) by inserting the following new paragraph 

22 (24) and redesignating paragraphs (23) through 

23 (25) as (25) through (27), respectively: 

24 ‘‘(24) ‘revenue producing aeronautical support 

25 facilities’ means new fuel farms, new hangar build26 ings, self-service credit card aeronautical fueling sysmstockstill on PROD1PC66 with BILLS

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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 (4) by inserting at the end the following new 

7 paragraph (28): 

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

9 ‘‘(A) development of an airport passenger 

10 terminal building, including terminal gates, ac11 cess roads servicing exclusively airport traffic 

12 that leads directly to or from a terminal build13 ing, and walkways that lead directly to or from 

14 a terminal building; and 

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

16 47119(a) of this title.’’. 

17 SEC. 303. AMENDMENTS TO GRANT ASSURANCES. 

18 Section 47107 is amended— 

19 (1) in clause (a)(16)(D)(ii), by striking ‘‘made;’’ 

20 and inserting ‘‘made, except that, if there is a 

21 change in airport design standards that the Sec22 retary determines is beyond the owner or operator’s 

23 control that requires the relocation or replacement of 

24 an existing airport facility, the Secretary, upon the 

25 request of the owner or operator, may grant funds 

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1 available under section 47114 to pay the cost of re2 locating or replacing such facility.’’; and 

3 (2) in clause (c)(2)(A)(iii), by striking from 

4 ‘‘paid to the Secretary’’ through the end of the 

5 clause, and inserting ‘‘reinvested in another project 

6 at the airport or transferred to another airport as 

7 the Secretary prescribes. In approving the reinvest8 ment or transfer of such proceeds, the Secretary 

9 shall give preference, in descending order, to the fol10 lowing actions: 

11 ‘‘(I) reinvestment in an approved 

12 noise compatibility project; 

13 ‘‘(II) reinvestment in an ap14 proved project that is eligible for 

15 funding under section 47117(e); 

16 ‘‘(III) reinvestment in an airport 

17 development project that is eligible for 

18 funding under sections 47114, 47115 

19 or 47117 and meets the requirements 

20 of this chapter; 

21 ‘‘(IV) transfer to another sponsor 

22 of another public airport to be rein23 vested in an approved noise compat24 ibility project at such airport; and 

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1 ‘‘(V) payment to the Secretary 

2 for deposit in the Airport and Airway 

3 Trust Fund established under section 

4 9502 of the Internal Revenue Code of 

5 1986 (26 U.S.C. 9502);’’. 

6 SEC. 304. GOVERNMENT SHARE OF PROJECT COSTS. 

7 Section 47109 is amended— 

8 (1) in subsection (a) by— 

9 (A) by striking ‘‘subsection (b) or sub10 section (c)’’ and inserting ‘‘subsections (b), (c) 

11 or (e)’’; 

12 (B) by striking ‘‘is—’’ and inserting ‘‘may 

13 not exceed—’’; 

14 (C) by striking paragraphs (1) and (2) and 

15 adding the following new paragraphs: 

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 (D) by redesignating paragraphs (3), (4), 

2 and (5) as paragraphs (4), (5), and (6); and 

3 (2) in subsection (f), by striking ‘‘47118(f)’’ 

4 and inserting ‘‘47118(e)’’; and 

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

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

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

8 hub primary airport changes to a medium hub primary 

9 airport, the United States Government’s share of allow10 able project costs for the airport may not exceed 90 per11 cent for two fiscal years following such change in hub sta12 tus.’’. 

13 SEC. 305. AMENDMENTS TO ALLOWABLE COSTS. 

14 Section 47110 is amended— 

15 (1) by revising subsection (d) to read as follows: 

16 ‘‘(d) RELOCATION OF AIRPORT-OWNED FACILI17 TIES.—The Secretary may determine that the costs of re18 locating or replacing an airport-owned facility are allow19 able for an airport development project at an airport only 

20 if— 

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

22 paid with funds apportioned to the airport sponsor 

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

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1 ‘‘(2) the Secretary determines that the reloca2 tion or replacement is required due to a change in 

3 the Secretary’s design standards; and 

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

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

6 (2) in subsection (h) by striking ‘‘facilities, in7 cluding fuel farms and hangars,’’ and inserting ‘‘fa8 cilities, as defined by section 47102,’’. 

9 SEC. 306. SIMPLIFICATION AND REFORM OF APPORTION10 MENT FORMULAS. 

11 Section 47114 is amended— 

12 (1) in subsection (c)(1)— 

13 (A) in subparagraph (A), by striking ‘‘pri14 mary airport’’ and inserting ‘‘small hub and 

15 nonhub primary airport’’; 

16 (B) in clause (A)(i), by striking ‘‘$7.80’’ 

17 and inserting ‘‘$15.60’’; 

18 (C) in clause (A)(ii), by striking ‘‘$5.20’’ 

19 and inserting ‘‘$10.40’’; 

20 (D) in clause (A)(iii), by striking ‘‘$2.60’’ 

21 and inserting ‘‘$5.20’’; 

22 (E) in clause (A)(iv), by striking ‘‘$.65’’ 

23 and inserting ‘‘$1.30’’; 

24 (F) in clause (A)(v), by striking ‘‘$.50’’ 

25 and inserting ‘‘$1.00’’; 

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1 (G) in subparagraph (B), by striking 

2 ‘‘$650,000’’ and all that follows through the 

3 end of the sentence and inserting ‘‘$1,000,000 

4 nor more than $26,000,000 may be apportioned 

5 under subparagraph (A) of this paragraph to 

6 an airport sponsor of each large hub and me7 dium hub primary airport for fiscal years 2008 

8 and 2009, and to each airport sponsor for a 

9 small hub and nonhub primary airport for each 

10 fiscal year.’’ 

11 (H) by amending subparagraph (C) to 

12 read as follows: 

13 ‘‘(C) TRANSITIONAL RULE FOR LARGE AND

14 MEDIUM HUB AIRPORTS.—In fiscal years 2008 

15 and 2009, the Secretary shall apportion to each 

16 large and medium hub airport an amount equal 

17 to 50 percent of the amount that is calculated 

18 using the formulas set forth in subparagraph 

19 (A).’’; 

20 (I) in subparagraph (D), by striking ‘‘(B) 

21 or (C), as appropriate,’’ and inserting ‘‘(B)’’; 

22 and 

23 (J) by striking subparagraph (F) and re24 designating subparagraph (G) as subparagraph 

25 (F); 

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1 (2) in subsection (c)(2)— 

2 (A) in subparagraph (A), by striking 

3 ‘‘(D),’’ and inserting ‘‘(C),’’; and 

4 (B) by striking subparagraph (C) and re5 designating subparagraphs (D) and (E) as (C) 

6 and (D), respectively; 

7 (3) in subsection (d)— 

8 (A) in subparagraph (2), by— 

9 (i) striking ‘‘18.5 percent’’ and insert10 ing ‘‘10 percent’’; and 

11 (ii) adding a new subparagraph at the 

12 end as follows: 

13 ‘‘(D) MINIMUM APPORTIONMENT.—In any 

14 fiscal year in which the total amount made 

15 available for apportionment under this sub16 section is less than $300,000,000, the Secretary 

17 shall reduce, on a prorated basis, the amount to 

18 be apportioned under subparagraph (d)(3)(A) 

19 of this section, and make such reduction avail20 able to be apportioned under this subsection, so 

21 as to meet a minimum apportionment of 

22 $300,000,000.’’; and 

23 (B) by revising paragraph (3) to read as 

24 follows: 

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1 ‘‘(3) NONPRIMARY AIRPORTS.—Except as pro2 vided in subsection (2)(D), the Secretary shall each 

3 fiscal year apportion— 

4 ‘‘(A) to each airport, excluding primary 

5 airports but including reliever and nonprimary 

6 commercial service airports– 

7 ‘‘(i) $400,000 to each airport that is 

8 either a nonprimary commercial service 

9 airport or a reliever or that is a nonpri10 mary airport having 100 or more oper11 ational registered based aircraft; 

12 ‘‘(ii) $200,000 to each airport that is 

13 a nonprimary airport (other than a nonpri14 mary commercial service or reliever air15 port), having 50 and 99 operational reg16 istered based aircraft, or three or more 

17 operational registered based jet aircraft; 

18 and 

19 ‘‘(iii) $100,000 to each airport that is 

20 a nonprimary airport (other than a nonpri21 mary commercial service airport or a re22 liever airport), and has 10 to 49 oper23 ational, registered based aircraft. 

24 ‘‘(B) For purposes of subparagraph (A), 

25 the terms ‘operational registered based aircraft’ 

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1 or ‘operational registered based jet aircraft’ 

2 shall be as defined in the Federal Aviation Ad3 ministration’s National Flight Data Center Air4 port Data Base or in a comparable, updated 

5 agency database.’’; 

6 (4) subsection (e) is amended— 

7 (A) in subparagraph (1)(B), by inserting 

8 ‘‘twice’’ before ‘‘the minimum’’; and 

9 (B) by striking paragraph (4); 

10 (5) in subsection (f)(1)— 

11 (A) by striking ‘‘in a fiscal year to the 

12 sponsor of an airport having at least .25 per13 cent of the total number of boardings each year 

14 in the United States’’ and inserting ‘‘in fiscal 

15 years 2008 and 2009 to a sponsor of a large 

16 hub or medium hub airport’’; 

17 (B) in subparagraph (B), by striking 

18 ‘‘$3.00,’’ and inserting ‘‘$3.00, but not more 

19 than $4.50,’’; 

20 (C) by adding a new subparagraph at the 

21 end as follows: 

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

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

24 revenues from the charge in the fiscal year but not 

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1 by more than 100 percent of the amount that other2 wise would be apportioned under this section.’’; and 

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

4 and inserting ‘‘charge’’; 

5 (6) in subsection (f)(2), by striking ‘‘fee’’ each 

6 time it appears and inserting ‘‘charge’’; and 

7 (7) by adding at the end the following: 

8 ‘‘(g) ENVIRONMENTAL SET-ASIDE.—(1) The Sec9 retary may apportion at least 8 percent of the amount sub10 ject to apportionment for each fiscal year for grants for— 

11 ‘‘(A) airport noise compatibility planning under 

12 section 47505(a)(2); 

13 ‘‘(B) carrying out noise compatibility programs 

14 under section 47504(c); 

15 ‘‘(C) noise mitigation projects approved in an 

16 environmental record of decision for an airport de17 velopment project under this title; 

18 ‘‘(D) for compatible land use planning projects 

19 carried out by State and local governments under 

20 section 47141; 

21 ‘‘(E) for airport development described in sec22 tion 47102(3)(F), 47102(3)(K) or 47102(3)(L) to 

23 comply with the Clean Air Act (42 U.S.C. 7401 et 

24 seq.); 

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1 ‘‘(F) for water quality mitigation projects to 

2 comply with the Clean Water Act (33 U.S.C. 1251 

3 et seq.) approved in an environmental record of deci4 sion for an airport development project under this 

5 title; and 

6 ‘‘(G) for carrying out an environmental mitiga7 tion demonstration project under section 47143 of 

8 this title. 

9 ‘‘(2) The Secretary may count the amount of grants 

10 made for such planning and programs with funds appor11 tioned under section 47114 in that fiscal year in deter12 mining whether or not such 8 percent requirement is being 

13 met in that fiscal year.’’. 

14 SEC. 307. MINIMUM AMOUNT FOR THE DISCRETIONARY 

15 FUND. 

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

17 ‘‘sum of—’’ through the end of clause (B) and inserting 

18 ‘‘sum of $520,000,000.’’. 

19 SEC. 308. FUNDING OF SPACE TRANSPORTATION INFRA20 STRUCTURE GRANTS PROGRAM. 

21 Section 47115 is amended by adding at the end the 

22 following new subsection: 

23 ‘‘(k) FUNDING OF SPACE TRANSPORTATION INFRA24 STRUCTURE MATCHING GRANTS.—Notwithstanding any 

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1 able under this section, the Secretary may issue a grant 

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

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

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

5 $10,000,000 per fiscal year shall be available for grants 

6 under this subsection.’’. 

7 SEC. 309. REPEAL OF SMALL AIRPORT FUND. 

8 Section 47116 is repealed. 

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

10 AND REPEAL OF THE MILITARY AND RE11 LIEVER AIRPORT SET-ASIDES. 

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

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

14 the Secretary shall provide at least 20 percent of the 

15 amount available to the discretionary fund under section 

16 47115 of this title to sponsors of small hub airports, 

17 nonhub airports, nonprimary commercial service airports, 

18 reliever airports or general aviation airports, for any pur19 pose for which amounts are made available under section 

20 48103. An airport in a State participating in the State 

21 block grant program under section 47128 may receive a 

22 grant under this section to the same extent the airport 

23 may receive a grant if the State were not participating 

24 in such program.’’. 

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1 SEC. 311. MILITARY AIRPORT PROGRAM. 

2 Section 47118 is amended— 

3 (1) in subsection (a), by striking ‘‘section 

4 47117(e)(1)(B)’’ and inserting ‘‘sections 

5 47114(c)(1), (c)(2) and (d), 47115, or 47117(e)’’; 

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

7 subsections (d) through (g) as (c) through (f) re8 spectively?]; 

9 (3) in subsection (c), as redesignated, by strik10 ing ‘‘section 47117(d)(1)(B) of this title’’ and in11 serting ‘‘sections 47114, 47115 or 47117 of this 

12 title for projects at airports designated under this 

13 section’’; 

14 (4) in subsection (d), as redesignated, by strik15 ing ‘‘section 47115, $10,000,000 for each of fiscal 

16 years 2004 and 2005, and $7,000,000 for each fis17 cal year thereafter,’’ and inserting ‘‘sections 47114, 

18 47115 or 47117, $7,000,000 for each fiscal year,’’; 

19 (5) in subsection (e), as redesignated— 

20 (A) by striking ‘‘(1) CONSTRUCTION.— 

21 From’’ and inserting ‘‘From’’; 

22 (B) by striking ‘‘section 47115, 

23 $10,000,000 for each of fiscal years 2004 and 

24 2005, and $7,000,000 for each fiscal year 

25 thereafter,’’ and inserting ‘‘sections 47114, 

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1 47115 or 47117, $7,000,000 for each fiscal 

2 year,’’; and 

3 (C) by striking paragraph (2); and 

4 (6) in subparagraph (f), as redesignated, by 

5 striking ‘‘one’’ and inserting ‘‘up to three’’. 

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

7 Section 47133(b) is amended— 

8 (1) by striking ‘‘apply if’’ and inserting: 

9 ‘‘apply—(1) if’’; 

10 (2) by striking ‘‘operator.’’ and inserting ‘‘oper11 ator; and’’; and 

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

13 ‘‘(2) in the case of a privately owned airport, to 

14 the proceeds from the sale of the airport to a public 

15 sponsor if— 

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

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

18 for the public sponsor’s acquisition; and 

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

20 unamortized portion of the original grant, am21 ortized over a 20-year period, is repaid to the 

22 Secretary by the private owner for deposit in 

23 the Trust Fund for airport acquisitions. 

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

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

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1 SEC. 313. SUNSET OF AIRPORT SECURITY PROGRAM. 

2 Section 47137 is amended by adding at the end the 

3 following: 

4 ‘‘(h) SUNSET.—This section shall not be in effect 

5 after September 30, 2008.’’. 

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

7 AIRPORT DEVELOPMENT RIGHTS. 

8 Section 47138 is amended by adding at the end the 

9 following: 

10 ‘‘(f) SUNSET.—This section shall not be in effect 

11 after September 30, 2007.’’. 

12 SEC. 315. EXTENSION OF GRANT AUTHORITY FOR COMPAT13 IBLE LAND USE PLANNING AND PROJECTS 

14 BY STATE AND LOCAL GOVERNMENTS. 

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

16 30, 2007.’’ and inserting ‘‘September 30, 2010.’’. 

17 SEC. 316. MIDWAY ISLAND AIRPORT. 

18 Section 186(d) of the Vision 100—Century of Avia19 tion Reauthorization Act (Public Law No. 108–176, 117 

20 Stat. 2490, 2518) is amended by striking ‘‘October 1, 

21 2007’’ and inserting ‘‘October 1, 2010’’. 

22 SEC. 317. PILOT PROGRAM FOR AIRPORT TAKEOVER OF 

23 AIR NAVIGATION FACILITIES. 

24 (a) IN GENERAL.—Chapter 445 is amended by add25 ing at the end the following new section: 

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1 ‘‘§ 44518. Pilot program for airport takeover of ter2 minal area air navigation equipment 

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

4 this section, the Administrator of the Federal Aviation Ad5 ministrator may carry out a pilot program under which 

6 the Administrator may transfer ownership, operating and 

7 maintenance responsibilities for airport terminal area air 

8 navigation equipment to sponsors of not more than 10 me9 dium or large hub airports. 

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

11 AIRPORT SPONSORS.—As a condition of participating in 

12 this pilot program the sponsor shall agree that the sponsor 

13 will— 

14 ‘‘(1) operate and maintain all of the air naviga15 tion equipment that is subject to this section at the 

16 airport in accordance with standards established by 

17 the Administrator; 

18 ‘‘(2) permit the Administrator or a person des19 ignated by the Administrator to conduct inspections 

20 of the air navigation equipment under a schedule es21 tablished by the Administrator; and 

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

23 equipment as needed to replace facilities that have 

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

25 meet new standards established by the Adminis26 trator. 

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

2 THE ADMINISTRATOR.—When the Administrator approves 

3 a sponsor’s participation in this pilot program, the Admin4 istrator shall— 

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

6 title and ownership of the air navigation equipment 

7 facilities approved for transfer under this program; 

8 and 

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

10 government’s property interest in the land on which 

11 the air navigation facilities transferred under sub12 section (1) are located. 

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

14 PROGRAM.—Upon transfer by the Administrator, any 

15 costs incurred by the airport for ownership and mainte16 nance of the equipment transferred under this section 

17 shall be considered a cost of providing airfield facilities 

18 and services under standards and guidelines issued by the 

19 Secretary under section 47129(b)(2) and may be recov20 ered in rates and charges assessed for use of the airfield. 

21 ‘‘(e) SPECIAL PASSENGER FACILITY CHARGE AU22 THORITY.—Notwithstanding the maximum amount for a 

23 passenger facility charge provided under section 

24 40117(b)(1), a participating sponsor in the pilot program 

25 under this section is authorized to impose a passenger famstockstill on PROD1PC66 with BILLS

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1 cility charge of $7 provided that the sponsor meets the 

2 otherwise applicable requirements of section 40117. 

3 ‘‘(f) DEFINITIONS.—In this section— 

4 ‘‘(1) ‘large hub airport’ and ‘medium hub air5 port’ shall have the meaning set forth in section 

6 40102; 

7 ‘‘(2) ‘sponsor’ shall have the same meaning as 

8 in section 47102; 

9 ‘‘(3) ‘terminal area air navigation equipment’ 

10 means an air navigation facility under section 

11 40102, other than buildings used for air traffic con12 trol functions, that exists to provide approach and 

13 landing guidance to aircraft. 

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

15 advisory guidelines on the implementation of the program. 

16 The guidelines shall not be subject to administrative rule17 making requirements under subchapter II of chapter 5 of 

18 title 5.’’. 

19 (b) CONFORMING AMENDMENT.—The analysis of 

20 chapter 445 is amended by inserting at the end: 

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

equipment.’’. 

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

22 (a) IN GENERAL.—Chapter 445 is amended by add23 ing at the end the following new section: 

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1 ‘‘§ 44519. ADS–B support pilot program 

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

3 pilot program to support non-Federal acquisition of Na4 tional Airspace System (NAS) compliant Automatic De5 pendant Surveillance—Broadcast (ADS–B) ground sta6 tions if— 

7 ‘‘(1) the Secretary determines that acquisition 

8 of the ground stations benefits the improvement of 

9 safety or capacity in the National Airspace System; 

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

11 transmit and receive data formats consistent with 

12 the National Airspace System architecture at the ap13 propriate service delivery point; and 

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

15 program are supplemental to ground stations estab16 lished under programs administered by the Adminis17 trator of the Federal Aviation Administration. 

18 ‘‘(b) PROJECT GRANTS.—(1) For purposes of car19 rying out this pilot program and notwithstanding the re20 quirements of section 47114(d), the Secretary may make 

21 a project grant out of funds apportioned under section 

22 47114(d)(2) to not more than ten eligible sponsors to ac23 quire and install ADS–B ground stations in order to serve 

24 any public-use airport. 

25 ‘‘(2) The Secretary shall establish procurement pro26 cedures applicable to grants issued under this section. The 

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1 procedures shall permit the sponsor to carry out the 

2 project using Federal Aviation Administration contracts. 

3 The procedures established by the Secretary may provide 

4 for the direct reimbursement (including administrative 

5 costs) of the Administrator by the sponsor using grant 

6 funds under this section, for the ordering of such equip7 ment and its installation, or for the direct ordering of such 

8 equipment and its installation by the sponsor, using such 

9 grant funds, from the suppliers with which the Adminis10 trator has contracted. 

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

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

13 exceed 90 percent of the costs of the acquisition and in14 stallation of the ground support equipment. 

15 ‘‘(d) DEFINITIONS.—In this section— 

16 ‘‘(1) ‘ADS–B ground station’ means electronic 

17 equipment that provides for ADS–B reception and 

18 broadcast services. 

19 ‘‘(2) ‘eligible sponsor’ means a state, a metro20 politan planning organization in the area where the 

21 project is located, or any consortium of two or more 

22 state or local governments meeting the definition of 

23 a sponsor under section 47102 of this title.’’. 

24 (b) CONFORMING AMENDMENT.—The analysis of 

25 chapter 445 is amended by inserting at the end: 

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

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1 SEC. 319. AIP ELIGIBILITY FOR METROPOLITAN WASH2 INGTON AIRPORTS AUTHORITY. 

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

4 2008,’’ and inserting ‘‘October 1, 2010’’. 

5 SEC. 320. MISCELLANEOUS AMENDMENTS. 

6 (a) TECHNICAL CHANGES TO NATIONAL PLAN OF

7 INTEGRATED AIRPORT SYSTEMS.—Section 47103 is 

8 amended— 

9 (1) in subsection (a), by striking ‘‘each airport 

10 to—’’ and inserting ‘‘the airport system to—’’; 

11 (2) in subsection (a)(1), by striking ‘‘system in 

12 the particular area;’’ and inserting ‘‘system, includ13 ing connection to the surface transportation net14 work; and’’; 

15 (3) in subsection (a)(2), by striking ‘‘aero16 nautics; and’’ and inserting ‘‘aeronautics.’’; 

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

18 (5) by striking subsection (b)(2) and redesig19 nating (b)(3) as (b)(2); 

20 (6) in subsection (b)(2), as redesignated, by 

21 striking ‘‘operations, Short Takeoff and Landing/ 

22 Very Short Takeoff and Landing aircraft oper23 ations,’’ and inserting ‘‘operations’’; and 

24 (7) in subsection (d), by striking ‘‘status of 

25 the’’. 

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1 (b) CONFORMING CHANGE TO PROJECT GRANT

2 AGREEMENTS.—Section 47108(e)(3) is amended by strik3 ing ‘‘and the small airport fund’’. 

4 (c) UPDATE VETERANS PREFERENCE DEFINI5 TION.—Section 47112(c) is amended— 

6 (1) in paragraph (1) by— 

7 (A) in subparagraph (B), by striking ‘‘sep8 arated from’’ and inserting ‘‘discharged or re9 leased from active duty in’’; and 

10 (B) inserting at the end the following: 

11 ‘‘(C) ‘Afghanistan-Iraq war veteran’ means 

12 an individual who served on active duty, as de13 fined by section 101(21) of title 38, at any time 

14 in the armed forces for a period of more than 

15 180 consecutive days, any part of which oc16 curred during the period beginning on Sep17 tember 11, 2001, and ending on the date pre18 scribed by Presidential proclamation or by law 

19 as the last date of Operation Iraqi Freedom.’’; 

20 and 

21 (2) in paragraph (2), by striking ‘‘veterans 

22 and’’ and inserting ‘‘veterans, Afghanistan-Iraq war 

23 veterans, and’’. 

24 (d) CONSOLIDATION OF TERMINAL DEVELOPMENT

25 PROVISIONS.—Section 47119 is amended— 

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1 (1) redesignating subsections (a), (b), (c) and 

2 (d) as subsections (b), (c), (d) and (e) respectively, 

3 and by inserting a new subsection (a) as follows: 

4 ‘‘(a) IN GENERAL.—(1) The Secretary may approve 

5 a project for terminal development (including multimodal 

6 terminal development) in a nonrevenue-producing public7 use area of a commercial service airport— 

8 ‘‘(A) if the sponsor certifies that the airport, on 

9 the date the grant application is submitted to the 

10 Secretary, has— 

11 ‘‘(i) all the safety equipment required for 

12 certification of the airport under section 44706 

13 of this title; 

14 ‘‘(ii) all the security equipment required by 

15 regulation; and 

16 ‘‘(iii) provided for access, to the area of the 

17 airport for passengers for boarding or exiting 

18 aircraft, to those passengers boarding or exiting 

19 aircraft, except air carrier aircraft; 

20 ‘‘(B) if the cost is directly related to moving 

21 passengers and baggage in air commerce within the 

22 airport, including vehicles for moving passengers be23 tween terminal facilities and between terminal facili24 ties and aircraft; and 

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1 ‘‘(C) under terms necessary to protect the inter2 ests of the Government. 

3 ‘‘(2) In making a decision under paragraph (1) of 

4 this subsection, the Secretary may approve as allowable 

5 costs the expenses of terminal development in a revenue6 producing area and construction, reconstruction, repair, 

7 and improvement in a nonrevenue-producing parking lot 

8 if— 

9 ‘‘(A) except as provided in section 47108(e)(3), 

10 the airport does not have more than .05 percent of 

11 the total annual passenger boardings in the United 

12 States; and 

13 ‘‘(B) the sponsor certifies that any needed air14 port development project affecting safety, security, 

15 or capacity will not be deferred because of the Sec16 retary’s approval.’’; 

17 (2) in subsection (b), as redesignated— 

18 (A) in paragraph (4)(A), by striking ‘‘sec19 tion 47110(d)’’ and inserting ‘‘subsection (a)’’; 

20 and 

21 (B) in paragraph (5), by striking ‘‘sub22 section (b)(1) and (2)’’ and inserting ‘‘sub23 section (c)(1) and (2)’’; and 

24 (3) by inserting at the end the following new 

25 subsections: 

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

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

3 the discretionary fund established under section 47115 of 

4 this title for terminal development projects at a nonhub 

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

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

7 this title.’’. 

8 (e) ANNUAL REPORT.—Section 47131(a) is amend9 ed— 

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

11 1’’; and 

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

13 to read as follows: 

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

15 planning completed; 

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

17 ‘‘(3) an accounting of discretionary and appor18 tioned funds allocated; 

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

20 (f) CORRECTION TO EMISSION CREDITS PROVI21 SION.—Section 47139 is amended— 

22 (1) in subsection (a), by striking 

23 ‘‘47102(3)(F),’’; and 

24 (2) in subsection (b)— 

25 (A) by striking ‘‘47102(3)(F),’’; 

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1 (B) by striking ‘‘47102(3)(L), or 47140’’ 

2 and inserting ‘‘or 47102(3)(L),’’; 

3 (C) by striking ‘‘47103(3)(F),’’; 

4 (D) by striking ‘‘47102(3)(L), or 47140,’’ 

5 and inserting ‘‘or ‘‘47102(3)(L),’’. 

6 (g) REPEAL OF AIRPORT GROUND SUPPORT EQUIP7 MENT EMISSIONS RETROFIT PILOT PROGRAM.—Section 

8 47140 is repealed. 

9 (h) CORRECTION TO SURPLUS PROPERTY AUTHOR10 ITY.—Section 47151(e) is amended by striking ‘‘(other 

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

12 10, section 201 of the Defense Authorization Amendments 

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

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

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

16 (i) AIRPORT CAPACITY BENCHMARK REPORTS; DEFI17 NITION OF JOINT USE AIRPORT.—Section 47175 is 

18 amended— 

19 (1) in paragraph (2), by striking ‘‘Airport Ca20 pacity Benchmark Report 2001.’’ and inserting 

21 ‘‘2001 and 2004 Airport Capacity Benchmark Re22 ports or of the most recent Benchmark report.’’; and 

23 (2) by adding at the end: 

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

25 airport’ means an airport owned by the United 

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1 States Department of Defense, at which both mili2 tary and civilian aircraft make shared use of the air3 field.’’. 

4 (j) CONFORMING AMENDMENT TO CIVIL PENALTY

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

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

7 46319’’. 

8 (k) FUNDING FOR ADMINISTRATIVE EXPENSES FOR

9 AIRPORT PROGRAMS.—(1) Section 48105 is amended to 

10 read as follows: 

11 ‘‘§ 48105. Airport programs administrative expenses 

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

13 shall be available for administrative expenses relating to 

14 the Airport Improvement Program, passenger facility fee 

15 approval and oversight, national airport system planning, 

16 airport standards development and enforcement, airport 

17 certification, airport-related environmental activities (in18 cluding legal services), and other airport-related activities 

19 (including airport technology research), to remain avail20 able until expended— 

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

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

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

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1 (2) CONFORMING AMENDMENTS.—The analysis 

2 of chapter 481 is amended by revising the title for 

3 section 48105 to read as follows: 

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

4 TITLE IV—MANAGEMENT AND 

5 ORGANIZATION REFORMS 

6 SEC. 401. AIR TRANSPORTATION SYSTEM ADVISORY 

7 BOARD. 

8 Section 106 is amended by striking subsection (p) 

9 and inserting in lieu thereof the following: 

10 ‘‘(p) AIR TRANSPORTATION SYSTEM ADVISORY

11 BOARD.— 

12 ‘‘(1) ESTABLISHMENT.—The Secretary shall es13 tablish an Advisory Board which shall be known as 

14 the Air Transportation System Advisory Board (in 

15 this subsection referred to as the ‘Board’). 

16 ‘‘(2) MEMBERSHIP.—The Board shall be com17 prised of 13 members, who shall consist of— 

18 ‘‘(A) the Administrator of the Federal 

19 Aviation Administration and a representative 

20 from the Department of Defense; 

21 ‘‘(B) three members who shall have a fidu22 ciary responsibility to represent the public in23 terest; and 

24 ‘‘(C) eight members representing aviation 

25 interests: 

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1 ‘‘(i) one representative of the airport 

2 community; 

3 ‘‘(ii) one representative each of major 

4 air carriers (Carrier Group I), national air 

5 carriers (Carrier Group II), and the re6 gional air carriers (Carrier Group III), as 

7 previously defined by the Secretary of 

8 Transportation under section 4, part 241 

9 of title 49 of the Code of Federal Regula10 tions; 

11 ‘‘(iii) one representative of the cargo 

12 airlines; 

13 ‘‘(iv) one representative of the general 

14 aviation community; 

15 ‘‘(v) one representative of the business 

16 aviation community; and 

17 ‘‘(vi) one representative of the avia18 tion manufacturing community. 

19 ‘‘(3) APPOINTMENT AND QUALIFICATIONS.— 

20 ‘‘(A) Members of the Board appointed 

21 under paragraphs (2)(B) and (2)(C) shall be 

22 appointed by the Secretary and shall not be 

23 considered to be employees of the Federal Gov24 ernment. 

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1 ‘‘(B) Members of the Board appointed 

2 under paragraph (2)(B) shall be citizens of the 

3 United States, and it is recommended that they 

4 shall be appointed without regard to political 

5 affiliation and solely on the basis of their pro6 fessional experience and expertise in one or 

7 more of the following areas and, in the aggre8 gate, should collectively bring to bear expertise 

9 in the following areas: 

10 ‘‘(i) management of large service or11 ganizations; 

12 ‘‘(ii) customer service; 

13 ‘‘(iii) management of large procure14 ments; 

15 ‘‘(iv) information and communications 

16 technology; 

17 ‘‘(v) organizational development; and 

18 ‘‘(vi) labor relations. 

19 ‘‘(4) FUNCTIONS.— 

20 ‘‘(A) IN GENERAL.—The Board shall— 

21 ‘‘(i) review and provide advice on the 

22 Administration’s safety programs, budget, 

23 and cost accounting system; 

24 ‘‘(ii) review the Administration’s stra25 tegic plan and make recommendations on 

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1 the non-safety program portions of the 

2 plan, and provide advice on the safety pro3 grams of the plan; 

4 ‘‘(iii) review the operational efficiency 

5 of the air traffic control system and make 

6 recommendations on the operational and 

7 performance metrics for that system; 

8 ‘‘(iv) review and make recommenda9 tions on the Administration’s plan for 

10 modernizing that system and capital ex11 penditures for a project of $100,000,000 

12 or more related to the system; 

13 ‘‘(v) make recommendations of the 

14 type and level of fees to be established by 

15 the Administration under sections 45305 

16 and 45306 and for any adjustments to 

17 those fees in accordance with the proce18 dures established under those sections; and 

19 ‘‘(vi) provide advice on the Adminis20 trator’s selection of a Chief Operating Offi21 cer for the Air Traffic Organization and on 

22 the appointment and compensation of its 

23 managers. 

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1 ‘‘(B) MEETINGS.—The Board shall meet 

2 on a regular and periodic basis or at the call of 

3 the Chairman or of the Administrator. 

4 ‘‘(C) ACCESS TO DOCUMENTS AND

5 STAFF.—The Administration may give the 

6 Board appropriate access to relevant documents 

7 and personnel of the Administration, and the 

8 Administrator shall make available, consistent 

9 with the authority to withhold commercial and 

10 other proprietary information under section 552 

11 of title 5 (commonly known as the ‘Freedom of 

12 Information Act’), cost data associated with the 

13 acquisition and operation of air traffic control 

14 systems. Any member of the Board who re15 ceives commercial or other proprietary data 

16 from the Administrator shall be subject to the 

17 provisions of section 1905 of title 18, pertaining 

18 to unauthorized disclosure of such information. 

19 ‘‘(5) FEDERAL ADVISORY COMMITTEE ACT NOT

20 TO APPLY.—The Federal Advisory Committee Act (5 

21 U.S.C. App.) shall not apply to the Board or such 

22 rulemaking committees as the Administrator shall 

23 designate. 

24 ‘‘(6) ADMINISTRATIVE MATTERS.— 

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1 ‘‘(A) TERMS OF MEMBERS.—Members of 

2 the Board appointed under paragraphs (2)(B) 

3 and (2)(C) shall be appointed for a term of 3 

4 years. Of the members first appointed by the 

5 Secretary— 

6 ‘‘(i) 3 shall be appointed for terms of 

7 1 year; 

8 ‘‘(ii) 4 shall be appointed for terms of 

9 2 years; 

10 ‘‘(iii) 4 shall be appointed for terms of 

11 3 years. 

12 ‘‘(B) REAPPOINTMENT.—No individual 

13 may be appointed to the Board for more than 

14 six years total. 

15 ‘‘(C) VACANCY.—Any vacancy on the 

16 Board shall be filled in the same manner as the 

17 original position. Any member appointed to fill 

18 a vacancy occurring before the expiration of the 

19 term for which the member’s predecessor was 

20 appointed shall be appointed for the remainder 

21 of that term. 

22 ‘‘(D) CONTINUATION IN OFFICE.—A mem23 ber of the Board whose term expires shall con24 tinue to serve until the date on which the mem25 ber’s successor takes office. 

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1 ‘‘(E) REMOVAL.—Any member of the 

2 Board appointed under paragraph (2)(B) or 

3 (2)(C) may be removed by the Secretary. 

4 ‘‘(F) CLAIMS AGAINST MEMBERS OF THE

5 BOARD.— 

6 ‘‘(i) IN GENERAL.—A member ap7 pointed to the Board shall have no per8 sonal liability under State or Federal law 

9 with respect to any claim arising out of or 

10 resulting from an act or omission by such 

11 member within the scope of service as a 

12 member of the Board. 

13 ‘‘(ii) EFFECT ON OTHER LAW.—This 

14 subparagraph shall not be construed— 

15 (I) to affect any other immunity 

16 or protection that may be available to 

17 a member of the Board under applica18 ble law with respect to such trans19 actions; 

20 (II) to affect any other right or 

21 remedy against the United States 

22 under applicable law; or 

23 (III) to limit or alter in any way 

24 the immunities that are available 

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1 under applicable law for Federal offi2 cers and employees. 

3 ‘‘(G) ETHICAL CONSIDERATIONS.—Each 

4 member of the Board appointed under para5 graph (2)(B) must self-certify that he or she— 

6 ‘‘(i) does not have a pecuniary interest 

7 in, or own stock in or bonds of, an aviation 

8 or aeronautical enterprise, except an inter9 est in a diversified mutual fund or an in10 terest that is exempt from the application 

11 of section 208 of title 18; 

12 ‘‘(ii) does not engage in another busi13 ness related to aviation or aeronautics; or 

14 ‘‘(iii) is not a member of any organi15 zation that engages, as a substantial part 

16 of its activities, in activities to influence 

17 aviation-related legislation. 

18 ‘‘(H) CHAIRMAN; VICE CHAIRMAN.—The 

19 Board shall elect a chair and a vice chair from 

20 among its members, each of whom shall serve 

21 for a term of 2 years. The vice chair shall per22 form the duties of the chairman in the absence 

23 of the chairman. 

24 ‘‘(I) COMPENSATION.—No member shall 

25 receive any compensation or other benefits from 

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1 the Federal Government for serving on the 

2 Board, except for compensation benefits for in3 juries under subchapter I of chapter 81 of title 

4 5, United States Code (Federal Employees’ 

5 Compensation Act) and except as provided 

6 under subparagraph (J). 

7 ‘‘(J) EXPENSES.—Each member of the 

8 Board shall be paid actual travel expenses and 

9 per diem in lieu of subsistence expenses when 

10 away from his or her usual place of residence, 

11 in accordance with section 5703 of title 5. 

12 ‘‘(K) DETAIL OF PERSONNEL FROM THE

13 ADMINISTRATION.—The Administrator shall 

14 make available to the Board such staff, infor15 mation, and administrative services and assist16 ance as may reasonably be required to enable 

17 the Board to carry out its responsibilities under 

18 this subsection. 

19 ‘‘(L) QUORUM AND VOTING.—A simple 

20 majority of members of the Board shall con21 stitute a quorum. A majority vote of members 

22 present and voting shall be required for the 

23 Committee to take action. 

24 ‘‘(7) ROLE OF THE ADMINISTRATOR AND THE

25 SECRETARY.—All actions and functions of the Board 

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1 are subject to the approval or disapproval of the Ad2 ministrator and the Secretary. 

3 ‘‘(8) AIR TRAFFIC CONTROL SYSTEM DE4 FINED.—In this section, the term ‘air traffic control 

5 system’ has the meaning such term has under sec6 tion 40102(a).’’. 

7 SEC. 402. FACILITATION OF NEXT GENERATION AIR TRAF8 FIC SERVICES. 

9 Section 106(l) is amended by adding at the end the 

10 following: 

11 ‘‘(7) SERVICES BY PRIVATE SECTOR.—In deter12 mining what actions to take, by rule or through an 

13 agreement or transaction under paragraph (6) or 

14 under section 44502, to permit non-government pro15 viders of communications, navigation, surveillance or 

16 other services to provide such services in the Na17 tional Airspace System, or to require the usage of 

18 such services, the Administrator shall consider 

19 whether such actions would: 

20 (A) promote the safety of life and prop21 erty; 

22 (B) improve the efficiency of the National 

23 Airspace System and reduce the regulatory bur24 den upon National Airspace System users, 

25 based upon sound engineering principles, user 

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1 operational requirements, and marketplace de2 mands; 

3 (C) encourage competition and provide 

4 services to the largest feasible number of users; 

5 and 

6 (D) take into account the unique role 

7 served by general aviation.’’. 

8 SEC. 403. CLARIFICATION OF AUTHORITY TO ENTER INTO 

9 REIMBURSABLE AGREEEMENTS. 

10 Section 106(m) is amended in the last sentence by 

11 inserting ‘‘with or’’ before ‘‘without’’. 

12 SEC. 404. DEFINITION OF AIR NAVIGATION FACILITY. 

13 Section 40102(4) is amended— 

14 (1) by revising paragraph (B) to read ‘‘runway 

15 lighting and airport surface visual and other naviga16 tion aids;’’; 

17 (2) in paragraph(C), by striking ‘‘weather infor18 mation, signaling, radio-directional finding, or radio 

19 or other electromagnetic communication; and’’ and 

20 inserting ‘‘aeronautical and meteorological informa21 tion to air traffic control facilities or aircraft, sup22 plying communication, navigation or surveillance 

23 equipment for air-to-ground or air-to-air applica24 tions;’’; 

25 (3) in paragraph (D)— 

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1 (A) by striking ‘‘another structure’’ and 

2 inserting ‘‘any structure or equipment’’; and 

3 (B) by striking ‘‘aircraft.’’ and inserting 

4 ‘‘aircraft; and’’; and 

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

6 ‘‘(E) buildings, equipment and systems 

7 dedicated to the National Airspace System.’’. 

8 SEC. 405. IMPROVED MANAGEMENT OF PROPERTY INVEN9 TORY. 

10 Section 40110(a)(2) is amended by striking ‘‘com11 pensation; and’’ and inserting ‘‘compensation, and the 

12 amount received may be credited to the appropriation cur13 rent when the amount is received; and’’. 

14 SEC. 406. CLARIFICATION TO ACQUISITION REFORM AU15 THORITY. 

16 Section 40110(c) is amended by— 

17 (1) by striking paragraph (4); and 

18 (2) by redesignating paragraph (5) as para19 graph (4). 

20 SEC. 407. ASSISTANCE TO FOREIGN AVIATION AUTHORI21 TIES. 

22 Section 40113(e) is amended— 

23 (1) in paragraph (1), by— 

24 (A) inserting ‘‘(public or private)’’ after 

25 the word ‘‘authorities’’; and 

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1 (B) striking the period at the end of the 

2 first sentence and inserting: ‘‘or efficiency. The 

3 Administrator is authorized to participate in, 

4 and submit offers in response to, competitions 

5 to provide these services, and to contract with 

6 foreign aviation authorities to provide these 

7 services consistent with the provisions under 

8 section 106(l)(6) of this title. The Adminis9 trator is also authorized, notwithstanding any 

10 other provision of law or policy, to accept pay11 ments in arrears.’’; and 

12 (2) in paragraph (3) by striking from ‘‘appro13 priation’’ through the end of the sentence and in14 serting ‘‘appropriation current when the expendi15 tures are or were paid, or the appropriation current 

16 when the amount is received’’. 

17 SEC. 408. PRESIDENTIAL RANK AWARD PROGRAM. 

18 Section 40122(g)(2) is amended— 

19 (1) in paragraph (H) by striking ‘‘Board.’’ and 

20 inserting ‘‘Board;’’; and 

21 (2) by inserting at the end the following new 

22 subparagraph: 

23 ‘‘(G) section 4507(b), (c), and (d), relating 

24 to Meritorious Executive or Distinguished Exec25 utive rank awards, and section 4507a(b) and 

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1 (c), relating to Meritorious Senior Professional 

2 or Distinguished Senior Professional rank3 awards: Provided, That for purposes of applying 

4 such provisions to the personnel management 

5 system, ‘‘agency’’ means the Department of 

6 Transportation, ‘‘senior executive’’ means an 

7 Federal Aviation Administration executive, ‘‘ca8 reer appointee’’ means an Federal Aviation Ad9 ministration career executive, and ‘‘senior ca10 reer employee’’ means an Federal Aviation Ad11 ministration career senior professional: Pro12 vided further, That receipt by a career ap13 pointee of the rank of Meritorious Executive or 

14 Meritorious Senior Professional entitles such in15 dividual to a lump-sum payment of an amount 

16 equal to 20 percent of annual basic pay, which 

17 shall be in addition to the basic pay paid under 

18 the Federal Aviation Administration Executive 

19 Compensation Plan: Provided further, That re20 ceipt by a career appointee of the rank of Dis21 tinguished Executive or Distinguished Senior 

22 Professional entitles the individual to a lump23 sum payment of an amount equal to 35 percent 

24 of annual basic pay, which shall be in addition 

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1 tion Administration Executive Compensation 

2 plan.’’. 

3 SEC. 409. REALIGNMENT AND CONSOLIDATION OF AVIA4 TION FACILITIES AND SERVICES. 

5 (a) Chapter 445 is amended by adding at the end 

6 the following new section: 

7 ‘‘§ 44518. Realignment and consolidation of aviation 

8 facilities and services 

9 ‘‘(a) PURPOSE.—The purpose of this section is to 

10 provide a fair process that will result in the realignment 

11 or consolidation of services and facilities of the Federal 

12 Aviation Administration to help reduce capital, operating, 

13 maintenance, and administrative costs with no adverse ef14 fect on safety. 

15 ‘‘(b) DEFINITIONS.—(1) The term ‘congressional 

16 committees of interest’ means the Committee on Com17 merce, Science and Transportation of the Senate, the 

18 Committee on Transportation and Infrastructure of the 

19 House of Representatives and the Committees on Appro20 priations of the Senate and House of Representatives. 

21 ‘‘(2) The term ‘Commission’ means the Commission 

22 established by subsection (c) of this section. 

23 ‘‘(3) The term ‘realignment’ includes any action 

24 which relocates functions and personnel positions but does 

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1 not include a reduction in personnel resulting from work2 load adjustments. 

3 ‘‘(c) ESTABLISHMENT OF COMMISSION.—(1) The 

4 Secretary may establish an independent commission to be 

5 known as the ‘Realignment and Consolidation of Aviation 

6 Facilities and Services Commission’. 

7 ‘‘(2) The Commission shall carry out the duties speci8 fied for it in this part. 

9 ‘‘(3) The Commission shall be composed of five mem10 bers appointed by the Secretary. Such members shall not 

11 be considered employees of the Federal Government. 

12 ‘‘(4) Members of the Commission shall be appointed 

13 for a term of 3 years. 

14 ‘‘(5) The Commission shall elect a chair from among 

15 its members. 

16 ‘‘(6) A vacancy in the Commission shall be filled in 

17 the same manner as the original appointment but the indi18 vidual appointed to fill the vacancy shall serve only for 

19 the unexpired portion of the term for which the individ20 ual’s predecessor was appointed. 

21 ‘‘(7) No member shall receive any compensation or 

22 other benefits from the Federal Government for serving 

23 on the Commission, except for compensation benefits for 

24 injuries under subchapter I of chapter 81 of title 5, United 

25 States Code (Federal Employees’ Compensation Act, and 

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1 except that each member of the Commission shall be paid 

2 actual travel expenses and per diem in lieu of subsistence 

3 expenses when away from his or her usual place of resi4 dence in accordance with section 5703 of title 5, United 

5 States Code. 

6 ‘‘(8) The Administrator of the Federal Aviation Ad7 ministration shall make available to the Commission such 

8 staff, information, and administrative services and assist9 ance as may reasonably be required to enable the Commis10 sion to carry out its responsibilities under this paragraph. 

11 The Commission may employ experts or consultants on a 

12 temporary or intermittent basis with the approval of the 

13 Secretary. 

14 ‘‘(9) The Federal Advisory Committee Act (5 U.S.C. 

15 App.) shall not apply to the Commission. 

16 ‘‘(d) FAA RECOMMENDATIONS FOR FACILITIES RE17 ALIGNMENT AND CONSOLIDATION.—Within six months 

18 after the establishment of the Commission by the Sec19 retary, the Administrator, after providing an opportunity 

20 for public comment, shall publish the final criteria to be 

21 used in making the Administrator’s recommendations for 

22 the realignment and consolidation of services and facilities 

23 under this section. On the basis of such final criteria, the 

24 Administrator shall publish in the Federal Register and 

25 transmit to the Commission a list of the services and famstockstill on PROD1PC66 with BILLS

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1 cilities that the Administrator recommends for realign2 ment and consolidation including a justification for each 

3 recommendation. 

4 ‘‘(e) REVIEW AND RECOMMENDATIONS BY THE COM5 MISSION.—(1) After receiving the recommendations from 

6 the Administrator pursuant to subsection (d), the Com7 mission shall opportunity for public comment on such rec8 ommendations. 

9 ‘‘(2) Based on its review and analysis of the Adminis10 trator’s recommendations and any public comment it may 

11 receive, the Commission shall make its independent rec12 ommendations to the President for realignment and con13 solidation of aviation services or facilities. 

14 ‘‘(3) The Commission shall explain and justify in its 

15 report submitted to the President any recommendation 

16 made by the Commission that is different from the rec17 ommendations made by the Administrator pursuant to 

18 subsection (d). The Commission shall transmit a copy of 

19 such report to the congressional committees of interest on 

20 the same date on which it transmits its recommendations 

21 to the President under paragraph (2). 

22 ‘‘(f) REVIEW BY THE PRESIDENT.—(1) The Presi23 dent shall transmit to the Commission and to the Con24 gress a report containing the President’s approval or dis25 approval of the Commission’s recommendations. 

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1 ‘‘(2) If the President approves all the recommenda2 tions of the Commission, the President shall transmit a 

3 copy of such recommendations to the Congress, together 

4 with a certification of such approval. 

5 ‘‘(3) If the President disapproves the recommenda6 tions of the Commission, in whole or in part, the President 

7 shall transmit to the Commission and the Congress the 

8 reasons for that disapproval. The Commission shall con9 sider the President’s report and may then transmit to the 

10 President a revised list of recommendations for the re11 alignment and consolidation of services and facilities. 

12 ‘‘(4) If the President approves all of the revised rec13 ommendations of the Commission transmitted to the 

14 President under paragraph (3), the President shall trans15 mit a copy of such revised recommendations to the Con16 gress, together with a certification of such approval. 

17 ‘‘(5) If the President does not transmit to the Con18 gress an approval and certification, the process by which 

19 agency services and facilities may be selected for realign20 ment or consolidation under this section shall be termi21 nated. 

22 ‘‘(g) REALIGNMENT AND CONSOLIDATION OF SERV23 ICES FACILITIES.—Subject to paragraph (h), the Admin24 istrator shall— 

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1 ‘‘(1) realign or consolidate all FAA services and 

2 facilities recommended for realignment or consolida3 tion by the Commission in the report transmitted to 

4 the Congress by the President pursuant to sub5 section (f)(2) or (4); 

6 ‘‘(2) initiate all such realignments and consoli7 dations no later than two years after the date on 

8 which the President transmits a report to the Con9 gress containing the recommendations for such re10 alignments or consolidations; and 

11 ‘‘(3) complete all such realignments and con12 solidations no later than the end of the six-year pe13 riod beginning on the date on which the President 

14 transmits the report containing the recommenda15 tions for such realignments or consolidations. 

16 ‘‘(h) CONGRESSIONAL DISAPPROVAL.—(1) The Ad17 ministrator may not carry out any closure or realignment 

18 recommended by the Commission in a report transmitted 

19 from the President pursuant to subsection (f)(2) or (4) 

20 if a joint resolution is enacted, disapproving such rec21 ommendations of the Commission before the earlier of— 

22 ‘‘(A) the end of the 60 day period beginning on 

23 the date on which the President transmits such re24 port; or 

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1 ‘‘(B) the adjournment of Congress sine die for 

2 the session during which such report is transmitted. 

3 ‘‘(2) For purposes of paragraph (1)(A), the days on 

4 which either House of Congress is not in session because 

5 of an adjournment of more than three days to a day cer6 tain shall be excluded in the computation of the 60 day 

7 period. 

8 ‘‘(i) AUTHORIZATION.—(1) There is authorized to be 

9 appropriated to the Administrator such sums as may be 

10 necessary for the Commission to carry out its duties and 

11 for the Administrator to implement the realignment and 

12 consolidation of services and facilities as described in sub13 section (g). 

14 ‘‘(2) Such sums shall remain available until ex15 pended. 

16 ‘‘(j) EFFECT ON OTHER AUTHORITIES.—Nothing in 

17 this section shall affect the authorities provided in section 

18 44503 or the existing authorities or responsibilities of the 

19 Administrator under this title to manage the operations 

20 of the Federal Aviation Administration, including realign21 ing or consolidating facilities or services.’’. 

22 (b) CONFORMING AMENDMENT.—The analysis of 

23 chapter 455 is amended by adding at the end the fol24 lowing: 

‘‘44518. Realignment and consolidation of aviation facilities and services.’’. 

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1 SEC. 410. OPERATIONAL AND APPROACH PROCEDURES BY 

2 THIRD PARTIES THROUGH DELEGATION. 

3 Section 44701 is amended by adding at the end the 

4 following: 

5 ‘‘(g) DELEGATION.—Subject to any regulations, su6 pervision, and review that the Administrator may pre7 scribe, the Administrator may delegate to a qualified pri8 vate person, or to an employee under the supervision of 

9 that person, the development, testing and maintenance of 

10 flight procedures.’’. 

11 SEC. 411. JUDICIAL REVIEW OF DENIAL OF AIRMAN CER12 TIFICATES. 

13 (a) JUDICIAL REVIEW OF NTSB DECISIONS.—Sec14 tion 44703(d) is amended by adding at the end the fol15 lowing: 

16 ‘‘(3) JUDICIAL REVIEW.—A person substan17 tially affected by an order of the Board under sub18 section (d) of this section, or the Administrator 

19 when the Administrator decides that an order of the 

20 Board will have a significant adverse impact on car21 rying out this part, may obtain judicial review of the 

22 order under section 46110 of this title. The Admin23 istrator shall be made a party to the judicial review 

24 proceedings. The findings of fact of the Board in 

25 any such case are conclusive if supported by sub26 stantial evidence.’’ 

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1 (b) CONFORMING AMENDMENT.—Section 1153(c) is 

2 amended by striking ‘‘section 44709 or’’ and inserting 

3 ‘‘section 44703(d), 44709 or’’. 

4 SEC. 412. RELEASE OF DATA RELATING TO ABANDONED 

5 TYPE CERTIFICATES AND SUPPLEMENTAL 

6 TYPE CERTIFICATES. 

7 Section 44704(a) is amended by adding at the end 

8 the following: 

9 ‘‘(5) RELEASE OF DATA.—(A) Notwithstanding 

10 any other provision of law, the Administrator may 

11 designate, without the consent of the owner of 

12 record, engineering data in the agency’s possession 

13 related to a type certificate or a supplemental type 

14 certificate for an aircraft, engine, propeller or appli15 ance, along with any associated supplier approved 

16 data for that product as public data, and therefore 

17 releasable, upon request, to a person seeking to 

18 maintain the airworthiness of such product, if the 

19 Administrator determines that: 

20 (i) the certificate containing the requested 

21 data has been inactive for three years; 

22 (ii) the owner of record, or the owner of 

23 record’s heir, of the type certificate or supple24 mental certificate has not been located despite 

25 a search of due diligence by the agency; and 

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1 (iii) the designation of such data as public 

2 data will enhance aviation safety. 

3 (B) For purposes of this section, ‘‘engineering 

4 data’’ means type design drawings and specifications 

5 for the entire product, including the original design 

6 data, any approved data for any supplemental type 

7 certificates, and any approved data for individual 

8 parts or components for the particular aeronautical 

9 product.’’. 

10 SEC. 413. DESIGN ORGANIZATION CERTIFICATES. 

11 Section 44704(e) is amended— 

12 (1) in paragraph (1)— 

13 (A) by striking ‘‘Beginning 7 years after 

14 the date of enactment of this subsection,’’ and 

15 inserting ‘‘Effective January 1, 2013,’’; and 

16 (B) by striking ‘‘44701(a) for the type cer17 tification of aircraft, aircraft engines, propel18 lers, or appliances.’’ and inserting ‘‘44701.’’; 

19 (2) in paragraph (2), by striking ‘‘testing’’ and 

20 inserting ‘‘production’’; and 

21 (3) by revising paragraph (3) to read as follows: 

22 ‘‘(3) ISSUANCE OF CERTIFICATE BASED ON DE23 SIGN ORGANIZATION CERTIFICATION.—The Adminis24 trator may rely on the Design Organization for cer25 tification of compliance under this section.’’. 

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1 SEC. 414. CONTRACT TOWER PROGRAM. 

2 Section 47124(b) is amended— 

3 (1) in paragraph (1), by striking ‘‘(Visual 

4 Flight Rules) level I’’ and inserting ‘‘nonapproach 

5 control’’; and 

6 (2) in paragraph (2), by striking ‘‘an airport 

7 traffic control tower classified as a level I (Visual 

8 Flight Rules)’’ and inserting ‘‘a low activity non9 approach control air traffic control’’. 

10 SEC. 415. ENHANCED OVERSIGHT OF NEXT GENERATION 

11 AIR TRANSPORTATION SYSTEM JOINT PLAN12 NING AND DEVELOPMENT OFFICE. 

13 Section 709 of Vision 100—Century of Aviation Re14 authorization Act (Public Law 108–176, Dec. 12, 2003, 

15 117 Stat. 2490, 2582) (49 U.S.C. 40101 note) is amend16 ed— 

17 (1) in subsection (a)— 

18 (A) in paragraph (1), by adding at the 

19 end, ‘‘The Director of the Office shall be super20 vised for various purposes by such officer or of21 ficers of the Department as the Secretary may 

22 specify. 

23 (B) adding at the end the following: 

24 ‘‘(5) The Director of the Office shall be a vot25 ing member of the Federal Aviation Administration’s 

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1 Joint Resources Council and the Air Traffic Organi2 zation’s Executive Council.’’; 

3 (2) by redesignating subsections (d) and (e) as 

4 (e) and (f) and inserting the following: 

5 ‘‘(d) CONSOLIDATED OPERATIONAL EVOLUTION

6 PARTNERSHIP.—The Administrator of the Federal Avia7 tion Administration shall develop and publish annually a 

8 consolidated operational evolution partnership that pro9 vides a detailed description of how the agency is imple10 menting the Next Generation Air Transportation Sys11 tem.’’; and 

12 (3) in subsection (e)(2), as redesignated, by 

13 striking ‘‘plan.’’ and inserting ‘‘plan, and how the 

14 respective budgets, and assignment of expert per15 sonnel, of the Federal Aviation Administration, the 

16 National Aeronautics and Space Administration, the 

17 Departments of Defense, the Department of Home18 land Security, the Department of Commerce and any 

19 other Federal agency that has an important interest 

20 in, or responsibility for, the Next Generation Air 

21 Transportation System support specific operational 

22 improvements for such System.’’. 

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1 TITLE V—AVIATION SAFETY, SE2 CURITY, CAPACITY AND 

3 CONNECTIVITY IMPROVE4 MENTS 

5 SEC. 501. DISCLOSURE OF DATA TO FEDERAL AGENCIES IN 

6 INTEREST OF NATIONAL SECURITY. 

7 Section 40119(b) is amended by adding at the end 

8 the following: 

9 ‘‘(3) Section 552 of title 5, United States Code, 

10 does not apply to disclosures the Administrator of 

11 the Federal Aviation Administration may make from 

12 the agency’s systems of records to any Federal law 

13 enforcement, intelligence, protective, immigration, or 

14 national security official in order to assist the offi15 cial receiving that information in the performance of 

16 official duties.’’. 

17 SEC. 502. FAA ACCESS TO CRIMINAL HISTORY RECORDS OR 

18 DATABASE SYSTEMS. 

19 (a) IN GENERAL.—Chapter 401 is revised by adding 

20 new section 40130 to read as follows: 

21 ‘‘§ 40130. FAA access to criminal history records or 

22 databases systems 

23 ‘‘(a) ACCESS TO RECORDS OR DATABASES SYS24 TEMS.—(1) Notwithstanding section 534 of title 28, 

25 United States Code, and the implementing regulations for 

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1 such section (28 C.F.R. part 20), the Administrator of 

2 the Federal Aviation Administration is authorized to ac3 cess a system of documented criminal justice information 

4 maintained by the Department of Justice or by a State 

5 but may do so only for the purpose of carrying out its 

6 civil and administrative responsibilities to protect the safe7 ty and security of the National Airspace System or to sup8 port the missions of the Department of Justice, the De9 partment of Homeland Security and other law enforce10 ment agencies. The Administrator shall be subject to the 

11 same conditions or procedures established by the Depart12 ment of Justice or State for access to such an information 

13 system by other governmental agencies with access to the 

14 system. 

15 ‘‘(2) The Administrator may not use the access au16 thorized under paragraph (1) to conduct criminal inves17 tigations. 

18 ‘‘(b) DESIGNATED EMPLOYEES.—The Administrator 

19 shall, by order, designate those employees of the Adminis20 tration who shall carry out the authority described in sub21 section (a). Such designated employees may— 

22 ‘‘(1) have access to and receive criminal history, 

23 driver, vehicle, and other law enforcement informa24 tion contained in the law enforcement databases of 

25 the Department of Justice, or of any jurisdiction in 

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1 a State in the same manner as a police officer em2 ployed by a State or local authority of that State 

3 who is certified or commissioned under the laws of 

4 that State; 

5 ‘‘(2) use any radio, data link, or warning sys6 tem of the Federal Government and of any jurisdic7 tion in a State that provides information about 

8 wanted persons, be-on-the-lookout notices, or war9 rant status or other officer safety information to 

10 which a police officer employed by a State or local 

11 authority in that State who is certified or commis12 sioned under the laws of that State has access and 

13 in the same manner as such police officer; or 

14 ‘‘(3) receive Federal, State, or local government 

15 communications with a police officer employed by a 

16 State or local authority in that State in the same 

17 manner as a police officer employed by a State or 

18 local authority in that State who is commissioned 

19 under the laws of that State. 

20 ‘‘(c) DEFINITION.—For purposes of this section, ‘sys21 tem of documented criminal justice information’ means 

22 any law enforcement databases, systems or communica23 tions containing information concerning identification, 

24 criminal history, arrests, convictions, arrest warrants, 

25 wanted or missing persons, including the National Crime 

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1 Information Center (NCIC) and its incorporated criminal 

2 history databases and the National Law Enforcement 

3 Telecommunications System (NLETS).’’. 

4 (b) CONFORMING AMENDMENT.—The analysis for 

5 chapter 401 is amended by adding at the end the fol6 lowing: 

‘‘40130. FAA access to criminal history records or databases systems.’’. 

7 SEC. 503. ALLOCATION OF OPERATING AUTHORIZATIONS 

8 AT LAGUARDIA AIRPORT. 

9 (a) IN GENERAL.—Subchapter I of Chapter 417 of 

10 title 49, United States Code, is amended by adding at the 

11 end the following: 

‘‘Sec. 41724. Allocation of operating authorizations at LaGuardia Airport. 

12 ‘‘(a) GENERAL AUTHORITY.—(1) Notwithstanding 

13 any other provision of law, the Secretary of Transpor14 tation and the Administrator of the Federal Aviation Ad15 ministration may determine that the use of a market 

16 based mechanism, such as an auction or congestion pric17 ing, is appropriate to promote the efficient movement of 

18 air traffic at LaGuardia Airport. To accomplish this objec19 tive, the Administrator shall determine the operational ca20 pacity of LaGuardia airport, in accordance with section 

21 40103 of this title. 

22 ‘‘(2) If the Secretary makes a the determination 

23 under subsection (a) that use of a market-based mecha24 nism is appropriate, the Secretary and the Administrator 

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1 shall permit the Port Authority of New York and New 

2 Jersey (Port Authority) to implement a market-based 

3 measure for the allocation of operating authorizations at 

4 the airport in accordance with subsection (b). If the Port 

5 Authority fails to implement such a mechanism within one 

6 year of the Secretary’s determination, the Secretary may 

7 implement a market-based mechanism at LaGuardia Air8 port in accordance with section 41725 of this title. 

9 ‘‘(b) RULEMAKING.—(1) The Secretary shall issue a 

10 rule to establish the terms and conditions under which in11 terested persons may obtain operating authorizations 

12 through a market-based mechanism authorized by sub13 section (a). The rule shall also, at a minimum, establish 

14 the procedures, timing, terms and conditions for the im15 plementation of this mechanism. Such regulation shall in16 clude provisions to protect the public interest as set forth 

17 in section 40101 of this title including: 

18 ‘‘(A) placing maximum reliance on competitive 

19 market forces; 

20 ‘‘(B) avoiding unreasonable industry concentra21 tion; 

22 ‘‘(C) encouraging entry into air transportation 

23 markets by new and existing air carriers; 

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1 ‘‘(D) ensuring that passengers in small commu2 nities and rural and remote areas have access to af3 fordable, scheduled air service; and 

4 ‘‘(E) providing air carriers and the traveling 

5 public a stable and predictable schedule for planning 

6 future travel. 

7 ‘‘(2) In developing the terms and conditions for an 

8 allocation mechanism, the Secretary may distinguish 

9 among classes of aircraft operators and among types of 

10 air service. 

11 ‘‘(c) ESCROW ACCOUNT.—If the Port Authority im12 plements a market-based mechanism under this section 

13 and such mechanism produces annual revenue in excess 

14 of the annual administrative costs associated with the es15 tablishment and administration of the mechanism, the 

16 Port Authority shall deposit the excess revenue in an es17 crow account. Expenditures may be made from the escrow 

18 account on eligible airport-related projects, in accordance 

19 with section 40117 of this title, or on any other project 

20 that the Secretary finds is in the public interest. 

21 ‘‘(d) RULES OF CONSTRUCTION.—Nothing in this 

22 section or in the use of a market-based mechanism author23 ized by this section shall: 

24 ‘‘(1) diminish the authority of the Adminis25 trator under other provisions of this title to regulate 

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1 the safe and efficient use of the national airspace, 

2 including the withdrawal of operating authorizations 

3 obtained under this section when required in the 

4 public interest; or 

5 ‘‘(2) be considered for purpose of any Federal 

6 law a major Federal action significantly affecting 

7 the human environment. 

8 ‘‘(e) TREATMENT AS ADDITIONAL REVENUE.—Ex9 penditures or other financial assistance provided under 

10 paragraph (c) shall be in addition to funds that would oth11 erwise be provided under the Airport Improvement Pro12 gram or any other Federal assistance program.’’. 

13 (b) CONFORMING AMENDMENT.—The analysis of 

14 subchapter I of chapter 417 is amended by adding at the 

15 end the following: 

‘‘41724. Allocation of operating authorizations at LaGuardia Airport.’’. 

16 SEC. 504. PILOT PROGRAM FOR MARKET-BASED MECHA17 NISMS AT CONGESTED AIRPORTS. 

18 (a) PILOT PROGRAM.—Subchapter I of chapter 417 

19 of title 49, United States Code, is amended by adding at 

20 the end the following: 

21 ‘‘§ 41725. Pilot Program to evaluate market-based 

22 mechanisms at congested airports 

23 ‘‘(a) IN GENERAL.—In order to promote the efficient 

24 use of airport capacity or the efficient movement of air 

25 traffic, the Secretary of Transportation shall establish a 

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1 pilot program for market-based pricing mechanisms for 

2 domestic flights at not more than fifteen airports under 

3 which an airport owner or operator may adopt, or the Ad4 ministrator of the Federal Aviation Administration may 

5 impose, a market-based mechanism for the airport in ac6 cordance with the procedures established by this section. 

7 ‘‘(b) REGIONAL DELAY.—(1) The Secretary may ap8 prove the application of an airport owner or operator to 

9 participate in the program if the Secretary finds that: 

10 ‘‘(A) the airport experiences demand exceeding 

11 existing capacity in the aggregate or during specific 

12 times or dates; 

13 ‘‘(B) delays at the airport have a significant ad14 verse effect on the regional airspace; and 

15 ‘‘(C) the market-based mechanism proposed by 

16 the airport owner or operator will not result in a dis17 incentive for the airport operator to add capacity 

18 where possible. 

19 ‘‘(2) Once the airport’s participation in the program 

20 is approved, the airport owner or operator may implement 

21 a market-based mechanism, and, in the case of a conges22 tion fee or auction, establish the method of collecting such 

23 revenue. Such fees shall be reasonable and not unjustly 

24 discriminatory. 

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1 ‘‘(3) An airport owner or operator may establish or 

2 adjust a market-based mechanism under this program 

3 only after consultation with the Administrator, air carriers 

4 serving the airport, and operators of aircraft based at the 

5 airport. 

6 ‘‘(4) If an auction or congestion fee implemented 

7 under this section produces annual revenue in excess of 

8 the annual administrative costs associated with the estab9 lishment and administration of the fee, the airport owner 

10 or operator shall deposit the excess revenue in an escrow 

11 account. Expenditures may be made from the escrow ac12 count on eligible airport-related projects, in accordance 

13 with section 40117 of this title, or on any other project 

14 that the Secretary finds is in the public interest. 

15 ‘‘(c) DELAYS AFFECTING THE NATIONAL SYSTEM.— 

16 (1) If the Secretary finds that the capacity constraints at 

17 an airport cause significant delays beyond the region in 

18 which the airport is located and have negative effects on 

19 the National Airspace System, and the owner or operator 

20 of such airport has not already adopted a market-based 

21 mechanism under paragraph (b), then the Secretary may 

22 implement, through rulemaking, a market-based mecha23 nism at the airport under the program to address these 

24 effects on the system. If market-based mechanisms are im25 plemented, the Administrator of the Federal Aviation Admstockstill on PROD1PC66 with BILLS

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1 ministration shall establish the method of collecting such 

2 fees. Such fees shall be reasonable and not unjustly dis3 criminatory. 

4 ‘‘(2) The Administrator may establish or adjust a 

5 market-based mechanism under this program only after 

6 consultation with the airport owner or operator, air car7 riers serving the airport, and operators of aircraft based 

8 at the airport. 

9 ‘‘(3) If market-based mechanisms implemented by 

10 the Administrator under this section produce annual rev11 enue in excess of the annual administrative costs associ12 ated with the establishment and administration of the fee, 

13 the Administrator shall deposit the surplus funds in an 

14 account established in the Treasury, and designated as the 

15 Airspace Congestion Mitigation Account. Such surplus 

16 revenue shall be available to the Secretary, as specified 

17 in appropriations Acts, until expended, for the following 

18 uses: 

19 ‘‘(A) airport capacity expansion or airport con20 gestion and delay reduction at the airport at which 

21 a market based mechanism is implemented; 

22 ‘‘(B) airport capacity expansion or airport con23 gestion and delay reduction at other congested air24 ports, with priority given to capacity projects in the 

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1 same region as the airport at which a market based 

2 mechanism is implemented; 

3 ‘‘(C) improvement of ground access to the air4 ports in the vicinity, as defined by the Secretary, if 

5 the Secretary finds that it would help relieve conges6 tion at the airport where a market-based mechanism 

7 is implemented; 

8 ‘‘(D) construction, reconstruction or reconfig9 uration of gates and related areas at the airport 

10 where a market-based mechanism is implemented; 

11 ‘‘(E) facilities, equipment, or other air traffic 

12 control improvement projects that would enhance 

13 airport or airspace capacity in the National Airspace 

14 System, with priority given to projects in the region 

15 of an airport where a market-based mechanism is 

16 implemented; and 

17 ‘‘(F) assistance to air carriers in the purchase 

18 of equipment for their aircraft to enable them to uti19 lize air traffic control facilities and equipment, in20 cluding the facilities and equipment purchased under 

21 subparagraph (E), in order to enhance airport and 

22 airspace capacity. 

23 ‘‘(d) CONFORMANCE WITH REQUIREMENTS.—A mar24 ket-based mechanism implemented under this pilot promstockstill on PROD1PC66 with BILLS

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1 gram shall be deemed to meet the requirements of section 

2 40116 and chapter 471 of this title. 

3 ‘‘(e) DEFINITION.—For purposes of this section, the 

4 term ‘market-based mechanism’ includes the use of auc5 tions, or congestion or peak period pricing under which 

6 fees may vary by time of day or day of the week in order 

7 to reduce aviation congestion and delays. 

8 ‘‘(f) EXCLUSION.—An airport subject to the require9 ments of section 41724 shall not be eligible to participate 

10 in this pilot program.’’. 

11 (b) CONFORMING AMENDMENT.—The analysis of 

12 subchapter I of chapter 417 is amended by adding at the 

13 end the following: 

‘‘41725. Pilot Program for market-based mechanisms at congested airports.’’. 

14 TITLE VI—ENVIRONMENTAL 

15 STEWARDSHIP AND STREAM16 LINING 

17 SEC. 601. AIRPORT COOPERATIVE RESEARCH PROGRAM. 

18 Section 44511(f) is amended— 

19 (1) in paragraph (1), by striking ‘‘establish a 4- 

20 year pilot’’ and inserting ‘‘maintain an’’; and 

21 (2) in paragraph (4), by— 

22 (A) inserting ‘‘pilot’’ before ‘‘program’’ the 

23 first time it appears; and 

24 (B) striking ‘‘program, including rec25 ommendations as to the need for establishing a 

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1 permanent airport cooperative research pro2 gram.’’ and inserting ‘‘program.’’. 

3 SEC. 602. STATE BLOCK GRANT PROGRAM. 

4 Section 47128 is amended— 

5 (1) in subsection (a), by striking ‘‘regulations’’ 

6 both times it appears and inserting ‘‘guidance’’; 

7 (2) in subsection (b)(4), by striking ‘‘grant;’’ 

8 and inserting ‘‘grant, including Federal environ9 mental requirements or an agreed upon equivalent;’’; 

10 and 

11 (3) by redesignating subsection (c) as (d) and 

12 inserting the following new subsection (c): 

13 ‘‘(c) ENVIRONMENTAL ANALYSIS AND COORDINA14 TION REQUIREMENTS.—Any Federal agency that must 

15 approve, license or permit a proposed action by a partici16 pating State shall coordinate and consult with the State. 

17 Such agency shall utilize the environmental analysis pre18 pared by the State, provided it is adequate, or supplement 

19 that analysis as necessary to meet applicable Federal re20 quirements.’’. 

21 SEC. 603. AIRPORT FUNDING OF SPECIAL STUDIES OR RE22 VIEWS. 

23 Section 47173(a) is amended by striking ‘‘project.’’ 

24 and inserting ‘‘project, or to conduct special environmental 

25 studies related to a federally funded airport project or for 

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1 special studies or reviews to support approved noise com2 patibility measures in a Part 150 program or environ3 mental mitigation in a Federal Aviation Administration 

4 Record of Decision or Finding of No Significant Impact.’’. 

5 SEC. 604. ENVIRONMENTAL MITIGATION DEMONSTRATION 

6 PILOT PROGRAM. 

7 (a) PILOT PROGRAM.—Chapter 471 is amended at 

8 the end by adding the following new section: 

9 ‘‘§ 47143. Environmental Mitigation Demonstration 

10 Pilot Program 

11 ‘‘(a) IN GENERAL.—The Secretary of Transportation 

12 shall carry out a pilot program involving not more than 

13 six projects at public-use airports under which the Sec14 retary may make grants to sponsors of such airports from 

15 funds apportioned under paragraph 47117(e)(1)(A) for 

16 use at such airports for environmental mitigation dem17 onstration projects that will measurably reduce or mitigate 

18 aviation impacts on noise, air quality or water quality in 

19 the vicinity of the airport. Notwithstanding any other pro20 vision of this subchapter, an environmental mitigation 

21 demonstration project approved under this section shall be 

22 treated as eligible for assistance under this subchapter. 

23 ‘‘(b) PARTICIPATION IN PILOT PROGRAM.—A public24 use airport shall be eligible for participation in the pilot 

25 program. 

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1 ‘‘(c) SELECTION CRITERIA.—In selecting from 

2 among applicants for participation in the pilot program, 

3 the Secretary may give priority consideration to environ4 mental mitigation demonstration projects that— 

5 ‘‘(1) will achieve the greatest reductions in air6 craft noise, airport emissions, or airport water qual7 ity impacts either on an absolute basis, or on a per 

8 dollar of funds expended basis; and 

9 ‘‘(2) will be implemented by an eligible consor10 tium. 

11 ‘‘(d) UNITED STATES GOVERNMENT’S SHARE.—Not12 withstanding any other provision of this subchapter, the 

13 United States Government’s share of the costs of a project 

14 carried out under this section shall be 50 percent. 

15 ‘‘(e) MAXIMUM AMOUNT.—Not more than 

16 $2,500,000 may be made available by the Secretary in 

17 grants under this section for any single project. 

18 ‘‘(f) IDENTIFYING BEST PRACTICES.—The Adminis19 trator may develop and publish information identifying 

20 best practices for reducing or mitigating aviation impacts 

21 on noise, air quality, or water quality in the vicinity of 

22 airports, based on the projects carried out under the pilot 

23 program. 

24 ‘‘(g) DEFINITIONS.—In this section— 

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1 ‘‘(1) the term ‘eligible consortium’ means a con2 sortium that comprises two or more of the following 

3 entities: 

4 ‘‘(A) businesses incorporated in the United 

5 States; 

6 ‘‘(B) public or private educational or re7 search organizations located in the United 

8 States; 

9 ‘‘(C) entities of State or local governments 

10 in the United States; or 

11 ‘‘(D) Federal laboratories. 

12 ‘‘(2) the term ‘environmental mitigation dem13 onstration project’ means a project that: 

14 ‘‘(A) introduces new conceptual environ15 mental mitigation techniques or technology with 

16 associated benefits, which have already been 

17 proven in laboratory demonstrations; 

18 ‘‘(B) proposes methods for efficient adap19 tation or integration of new concepts to airport 

20 operations; and 

21 ‘‘(C) will demonstrate whether new tech22 niques or technology for environmental mitiga23 tion identified in research are— 

24 ‘‘(i) practical to implement at or near 

25 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 analysis for 

5 subchapter I of chapter 471 is amended by adding at the 

6 end 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 new subsection: 

11 ‘‘(e) GRANTS FOR ASSESSMENT OF FLIGHT PROCE12 DURES.—(1) The Secretary is authorized in accordance 

13 with paragraph (c)(1) to make a grant to an airport oper14 ator to assist in completing environmental review and as15 sessment activities for proposals to implement flight proce16 dures that have been approved for airport noise compat17 ibility planning purposes under subsection (b). 

18 ‘‘(2) The Administrator of the Federal Aviation Ad19 ministration may accept funds from an airport sponsor, 

20 including funds provided to the sponsor under paragraph 

21 (1), to hire additional staff or obtain the services of con22 sultants in order to facilitate the timely processing, review 

23 and completion of environmental activities associated with 

24 proposals to implement flight procedures submitted and 

25 approved for airport noise compatibility planning purposes 

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1 in accordance with this section. Funds received under this 

2 authority shall not be subject to the procedures applicable 

3 to the receipt of gifts by the Administrator.’’. 

4 SEC. 606. RESEARCH CONSORTIUM FOR LOWER ENERGY, 

5 EMISSIONS AND NOISE TECHNOLOGY PART6 NERSHIP. 

7 (a) ESTABLISHMENT OF CONSORTIUM.—Subchapter 

8 I of chapter 475 is amended by adding at the end the 

9 following: 

10 ‘‘§ 47512. Research consortium for lower energy, 

11 emissions and noise technology partner12 ship 

13 ‘‘(a) CLEEN ENGINE TECHNOLOGY PARTNER14 SHIP.—The Administrator of the Federal Aviation Admin15 istration shall enter into a cooperative agreement with the 

16 Partnership for AiR Transportation Noise and Emissions 

17 Reduction (PARTNER) Center of Excellence for the de18 velopment, maturing, and certification for Continuous 

19 Lower Energy, Emissions and Noise (CLEEN) engine and 

20 airframe technology for aircraft over the next ten years. 

21 ‘‘(b) PERFORMANCE OBJECTIVE.—The Adminis22 trator shall establish the following performance objectives 

23 for the program to be completed by 2015: 

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1 ‘‘(1) certifiable aircraft technology that in2 creases aircraft fuel efficiency by 25 percent relative 

3 to 1997 subsonic aircraft technology; 

4 ‘‘(2) certifiable engine technology that reduces 

5 landing and takeoff cycle (LTO) nitrogen oxide 

6 emissions by 50 percent, without increasing other 

7 gaseous or particle emissions, over the International 

8 Civil Aviation Organization (ICAO) standard adopt9 ed in 2004; 

10 ‘‘(3) certifiable aircraft technology that reduces 

11 noise levels by 10 dB relative to 1997 subsonic jet 

12 aircraft technology; 

13 ‘‘(4) determination of the feasibility of use of 

14 alternative fuels in aircraft systems, including suc15 cessful demonstration and quantification of benefits; 

16 and 

17 ‘‘(5) determination of the extent to which new 

18 engine and aircraft technologies may be used to ret19 rofit or re-engine aircraft so as to increase the level 

20 of penetration into the commercial fleet. 

21 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated from the funding pro23 vided for the Next Generation Air Transportation System 

24 program such sums as necessary to carry out this section. 

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1 ‘‘(d) The Administrator shall publish a progress re2 port on the CLEEN program each year beginning in 

3 2009.’’. 

4 (b) CONFORMING AMENDMENT.—The analysis of 

5 subchapter I of chapter 475 is amended by adding at the 

6 end: 

‘‘47512. Research consortium for lower energy, emissions and noise technology 

partnership.’’. 

7 SEC. 607. AMENDMENTS TO AIR TOUR MANAGEMENT PRO8 GRAM. 

9 Section 40128 is amended— 

10 (1) in subsection (a)— 

11 (A) in clause (1)(C), by striking ‘‘lands.’’ 

12 and inserting ‘‘lands, or a voluntary agree13 ment.’’; and 

14 (B) by adding at the end the following: 

15 ‘‘(5) EXEMPTION.—Notwithstanding paragraph 

16 (1), units of the national park system that have 50 

17 or fewer commercial air tour flights a year shall be 

18 exempt from the requirements of this section, except 

19 that the Director may determine at any time that 

20 this exemption shall not apply to any park for which 

21 the Director determines an air tour management 

22 plan or voluntary agreement is necessary to protect 

23 park resources and values or park visitor use and 

24 enjoyment. The Director shall inform the Adminismstockstill on PROD1PC66 with BILLS

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1 trator in writing of such determinations. The Direc2 tor and Administrator shall publish an annual list of 

3 national parks that fall within the exemption pro4 vided by this paragraph. A commercial air tour oper5 ator conducting commercial air tours in a national 

6 park that is exempt from the requirements of this 

7 section shall submit to the Administrator and the 

8 Director an annual report of the number of air tour 

9 flights it conducts each year in such exempted 

10 park.’’; 

11 (2) in subsection (b), by adding at the end the 

12 following new paragraph: 

13 ‘‘(7) VOLUNTARY AGREEMENTS.—(A) As an al14 ternative to an air tour management plan, for any 

15 unit of the national park system, the Director and 

16 the Administrator may enter into a voluntary agree17 ment to manage commercial air tour operations over 

18 a park unit with any commercial air tour operators 

19 that have applied for authority to conduct air tour 

20 operations over the park unit, including existing op21 erators that have interim operating authority, and 

22 new entrant applicants. 

23 ‘‘(B) Such voluntary agreement shall address 

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1 sources and visitor use without compromising avia2 tion safety, and may— 

3 ‘‘(i) include provisions described in para4 graph (3)(B) through (E); 

5 ‘‘(ii) include provisions to insure the sta6 bility of and compliance with the voluntary 

7 agreement; and 

8 ‘‘(iii) provide for fees for operating over 

9 the park. 

10 ‘‘(C) The Director and the Administrator shall 

11 offer the opportunity for public review of a proposed 

12 voluntary agreement, and shall consult with any In13 dian tribe whose tribal lands are, or may be, 

14 overflown by commercial air tour operators under a 

15 voluntary agreement. 

16 ‘‘(D) Following such public review and con17 sultation, a voluntary agreement may be imple18 mented without further administrative or environ19 mental process. 

20 ‘‘(E) A voluntary agreement may be rescinded 

21 at the discretion of the Director or the Adminis22 trator if the Director determines that the agreement 

23 is not adequately protecting park resources or visitor 

24 experiences, or the Administrator determines that 

25 the agreement is adversely affecting aviation safety 

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1 or the national aviation system. If a voluntary agree2 ment for a park is rescinded, the operators must 

3 conform to the requirements for interim operating 

4 authority under subsection (c) until an air tour man5 agement plan for the park is in effect.’’; 

6 (3) in subsection (c)— 

7 (A) by revising clause (2)(I) to read as fol8 lows: 

9 ‘‘(I) may allow for modifications of the in10 terim operating authority without further envi11 ronmental process provided that— 

12 ‘‘(i) adequate information on the oper13 ator’s existing and proposed operations is 

14 provided to the Administrator and the Di15 rector by the operator making the request; 

16 ‘‘(ii) the Administrator agrees that 

17 there would be no adverse impact on avia18 tion safety; and 

19 ‘‘(iii) the Director agrees, based on 

20 professional expertise regarding the protec21 tion of the park resources and values and 

22 visitor use and enjoyment.’’; 

23 (B) in paragraph (3)— 

24 (i) in clause (A), by striking from ‘‘if 

25 the Administrator determines’’ through the 

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1 end and inserting ‘‘without further envi2 ronmental process provided that— 

3 ‘‘(i) adequate information on the oper4 ator’s proposed operations is provided to 

5 the Administrator and the Director by the 

6 operator making the request; 

7 ‘‘(ii) the Administrator agrees that 

8 there would be no adverse impact on avia9 tion safety; and 

10 ‘‘(iii) the Director agrees, based on 

11 professional expertise regarding the protec12 tion of park resources and values and vis13 itor use and enjoyment.’’; and 

14 (ii) by striking clause (B) and redesig15 nating clause (C) as (B); 

16 (4) by redesignating subsections (d) and (e) as 

17 subsections (e) and (f), respectively; and 

18 (5) inserting new subsection (d) as follows: 

19 ‘‘(d) COMMERCIAL AIR TOUR OPERATOR RE20 PORTS.—Each commercial air tour operator providing a 

21 commercial air tour over a national park unit under in22 terim operating authority or in accordance with an air 

23 tour management plan shall report the number of com24 mercial air tour operations over each park unit and other 

25 data requested by the Administrator and Director in order 

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1 to facilitate administering the provisions of this section. 

2 The reports shall be on a frequency and in a format re3 quested by the Administrator and Director, and shall be 

4 submitted to both the Administrator and Director or their 

5 designees. The Administrator and Director shall jointly 

6 issue an initial request for the reports authorized in this 

7 subsection no later than three months after the date of 

8 enactment of this provision.’’. 

9 TITLE VII—AVIATION 

10 INSURANCE 

11 SEC. 701. GENERAL AUTHORITY. 

12 (a) IN GENERAL.—Section 44302 is amended— 

13 (1) by repealing subsection (b); and 

14 (2) in subsection (f)(2)— 

15 (A) by striking ‘‘paragraph (1)—(A) in’’ 

16 and inserting ‘‘paragraph (1), in’’; and 

17 (B) by striking ‘‘2002; and’’ and inserting 

18 ‘‘2002.’’; and 

19 (C) by striking paragraph (B). 

20 (b) CONFORMING AMENDMENT.—Section 44303(a) 

21 is amended by striking ‘‘, or reimburse insurance costs,’’. 

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1 SEC. 702. EXTENSION OF AUTHORITY TO LIMIT THIRD 

2 PARTY LIABILITY OF AIR CARRIERS ARISING 

3 OUT OF ACTS OF TERRORISM. 

4 Section 44303(b) is amended by striking ‘‘December 

5 31, 2006’’ and inserting ‘‘December 31, 2011’’. 

6 SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY. 

7 Section 44304 is amended in the second sentence by 

8 striking ‘‘the carrier’’ and inserting ‘‘any insurance car9 rier’’. 

10 SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS. 

11 Section 44308 is amended in subsection (c)(1) in the 

12 second sentence by striking ‘‘agent’’ and inserting ‘‘agent, 

13 or a claims adjuster who is independent of the under14 writing agent,’’. 

15 SEC. 705. EXTENSION OF PROGRAM AUTHORITY. 

16 Section 44310 is amended by striking ‘‘March 30, 

17 2008.’’ and inserting ‘‘March 30, 2013.’’. 

18 TITLE VIII—AVIATION SERVICE 

19 IMPROVMENTS 

20 SEC. 801. EXTENSION OF COMPETITIVE ACCESS REPORTS. 

21 Section 47107(s)(3) is amended by striking ‘‘2008’’ 

22 and inserting ‘‘2012’’. 

23 SEC. 802. ESSENTIAL AIR SERVICE REFORM. 

24 (a) DEFINITION.—Section 41731 is amended to read 

25 as follows: 

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1 ‘‘§ 41731. Definition 

2 ‘‘In this subchapter ‘eligible place’ means a place in 

3 the United States— 

4 ‘‘(1) that as of the date of enactment of the 

5 Next Generation Air Transportation System Financ6 ing Reform Act of 2007, was receiving subsidized 

7 Essential Air Service; 

8 ‘‘(2) that is more than 70 highway miles from 

9 the nearest medium or large hub airport; and 

10 ‘‘(3) at which the subsidy per passenger does 

11 not exceed $200 for a community that is less than 

12 210 miles from the nearest medium or large hub air13 port.’’. 

14 (b) ESSENTIAL AIR SERVICE.—Section 41732 is 

15 amended to read as follows: 

16 ‘‘§ 41732. Essential air service 

17 ‘‘Essential air service provided under section 41733 

18 of this title is transportation of passengers and cargo to 

19 a destination airport and at a level of service comparable 

20 to what the community received on the date of enactment 

21 of the Next Generation Air Transportation System Fi22 nancing Reform Act of 2007.’’. 

23 (c) AVAILABILITY OF COMPENSATION.—Section 

24 41733 is amended to read as follows: 

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1 ‘‘§ 41733. Selection criteria and availability of com2 pensation 

3 ‘‘(a) AVAILABILITY OF COMPENSATION.— 

4 ‘‘(1) If the Secretary decides that essential air 

5 service under section 41732 will not be provided to 

6 an eligible place without compensation, the Secretary 

7 shall provide notice that any air carrier may apply 

8 to provide essential air service to the place for com9 pensation under this section. In selecting an appli10 cant, the Secretary may consider, among other fac11 tors— 

12 ‘‘(A) the demonstrated reliability of the ap13 plicant in providing air service; 

14 ‘‘(B) the contractual and marketing ar15 rangements the applicant has made with an air 

16 carrier(s) to ensure service beyond the destina17 tion airport; 

18 ‘‘(C) the interline arrangements that the 

19 applicant has made with a larger carrier to 

20 allow passengers and cargo of the applicant at 

21 the destination airport to be transported by the 

22 carrier(s) through one reservation, ticket, and 

23 baggage check-in; 

24 ‘‘(D) the preferences of the actual and po25 tential users of air service at the eligible place, 

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1 giving substantial weight to the views of the 

2 elected officials representing the users; and 

3 ‘‘(E) the relative subsidy costs to the 

4 United States Government based on the appli5 cants’ proposals. 

6 ‘‘(2) Under guidelines prescribed under section 

7 41737 of this subchapter, the Secretary shall pay 

8 the rate of compensation for providing essential air 

9 service under this section and section 41734 of this 

10 subchapter. 

11 ‘‘(b) COMPENSATION PAYMENTS.—The Secretary 

12 shall pay compensation under this section at times and 

13 in the way the Secretary decides is appropriate. The Sec14 retary shall end payment of compensation to an air carrier 

15 for providing essential air service to an eligible place when 

16 the Secretary decides the compensation is no longer nec17 essary to maintain essential air service to the place. 

18 ‘‘(c) REVIEW.—The Secretary shall review periodi19 cally the level of essential air service for each eligible place. 

20 Based on the review and consultations with the interested 

21 community and the appropriate State authority of the 

22 State in which the community is located, the Secretary 

23 may make appropriate adjustments in the level of service. 

24 However, the level of service that is subsidized will not 

25 be more than that which a community is receiving as of 

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1 the date of enactment of the Next Generation Air Trans2 portation System Financing Reform Act of 2007.’’. 

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, 

9 suspend, 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. The term 

13 ‘‘driving distance’’ means the shortest driving dis14 tance as determined by the Federal Highway Admin15 istration. 

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 49 U.S.C. 48203(b), 

3 which shall remain available until expended.’’. 

4 (e) 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. Such 

14 amount shall remain available until expended.’’. 

15 (f) REPEALED PROVISIONS.— 

16 (1) Sections 41735, 41736, 41745, 41747, and 

17 41748 are repealed. 

18 (2) Subchapter III of chapter 417 is repealed. 

19 (g) CONFORMING AMENDMENTS.— 

20 (1) The analysis to chapter 417 is amended by 

21 striking the items relating to sections 41735, 41736, 

22 41745, 41747, and 41748. 

23 (2) The analysis to chapter 417 is amended by 

24 striking all of the items relating to subchapter III. 

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1 (3) Section 41738 is amended by deleting ‘‘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 become effective 16 months after the 

11 date 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 three sentences. 

16 (b) ELIMINATION OF SCHEDULES FOR MAIL TRANS17 PORTATION.—Section 41902 is amended— 

18 (1) in subsection (a) by striking ‘‘in foreign air 

19 transportation or’’; 

20 (2) by revising subsection (b) to read as follows: 

21 ‘‘(b) STATEMENTS ON PLACES AND SCHEDULES.— 

22 Every air carrier shall file with the United States Postal 

23 Service a statement showing— 

24 ‘‘(1) the places between which the carrier is au25 thorized to transport mail in Alaska; 

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1 ‘‘(2) every schedule of aircraft regularly oper2 ated by the carrier between places described in 

3 clause (1) of this subsection and every change in 

4 each schedule; and 

5 ‘‘(3) for each schedule, the placed served by the 

6 carrier and the time of arrival at, and departure 

7 from, each place.’’; 

8 (3) by deleting subsections (e) and (f). 

9 (c) EFFECTIVE DATE.—The amendment made by 

10 subsection (a) shall become effective 16 months after the 

11 date of enactment of this Act. 

12 SEC. 805. CONTENTS OF COMPETITION PLANS. 

13 Section 47106(f)(2) is amended— 

14 (1) by striking ‘‘patterns of air service,’’; 

15 (2) by inserting ‘‘and’’ before ‘‘whether’’; and 

16 (3) by striking ‘‘, and airfare levels (as com17 piled by the Department of Transportation) com18 pared to other large airports’’. 

19 SEC. 806. AIRPORT PRIVATIZATION. 

20 Section 47134 is amended— 

21 (1) in the first sentence of subsection (b), by 

22 striking ‘‘5 airports’’ and inserting ‘‘15 airports’’; 

23 (2) by revising paragraph (b)(1)(A) to read as 

24 follows: 

25 ‘‘(1) USE OF REVENUES.— 

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1 ‘‘(A) IN GENERAL.—The Secretary may 

2 grant an exemption to a sponsor from the pro3 visions of section 47107(b) and 47133 of this 

4 title (and any other law, regulation, or grant 

5 assurance) to the extent necessary to permit the 

6 sponsor to recover from the sale or lease of the 

7 airport such amount as may be approved by the 

8 Secretary after the sponsor has consulted— 

9 ‘‘(i) in the case of a primary airport, 

10 with each air carrier and foreign air car11 rier serving the airport as determined by 

12 the Secretary; or 

13 ‘‘(ii) in the case of a non-primary air14 port, with at least 65 percent of the own15 ers of aircraft based at that airport, as de16 termined by the Secretary.’’; 

17 (3) by striking subparagraph (b)(1)(C); 

18 (4) in subsection (c), by— 

19 (A) striking paragraphs (4), (5), and (9) 

20 and redesignating paragraphs (6) through (8) 

21 as paragraphs (4) through (6) respectively; and 

22 (B) adding a new paragraph (7) at the end 

23 to read as follows: 

24 ‘‘(7) No part of a fee charged to an air carrier 

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1 vestment or recovery of principal with respect to 

2 consideration paid to the public agency for the lease 

3 or sale of the airport unless such part of the fee is 

4 approved by the air carrier or foreign air carrier.’’; 

5 and 

6 (5) by striking paragraph (d) and redesignating 

7 paragraphs (e) through (m) as (d) through (l) re8 spectively. 

9 SEC. 807. CLARIFICATION OF AIR CARRIER FEE DISPUTES. 

10 Section 47129 is amended— 

11 (1) by inserting ‘‘and foreign air carrier’’ after 

12 ‘‘air carrier’’ in the section heading, in the heading 

13 for subsection (d), and in the paragraph heading for 

14 paragraph (d)(2); 

15 (2) by striking ‘‘air carrier’’ each place it ap16 pears in text, and inserting ‘‘air carrier or foreign 

17 air carrier’’; 

18 (3) by striking ‘‘air carrier’s’’ each place it ap19 pears and inserting ‘‘air carrier’s or foreign air car20 rier’s’’; 

21 (4) by striking ‘‘air carriers’’ each place it ap22 pears and inserting ‘‘air carriers or foreign air car23 riers’’; and 

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1 (5) by striking ‘‘(as defined in section 40102 of 

2 this title)’’ in subsection (a) and inserting ‘‘(as those 

3 terms are defined in section 40102 of this title)’’. 

4 SEC. 808. AMENDMENTS TO CHAPTER 415. 

5 (a) IN GENERAL.—Chapter 415 is amended— 

6 (1) by revising section 41501 to read as follows: 

7 ‘‘§ 41501. Establishing reasonable prices, classifica8 tions, rules and practices for foreign air 

9 transportation 

10 ‘‘Every air carrier and foreign air carrier shall estab11 lish, comply with, and enforce reasonable prices, classifica12 tions, rules and practices related to foreign air transpor13 tation.’’. 

14 (2) by revising section 41502 to read as follows: 

15 ‘‘§ 41502. Establishing joint prices for through routes 

16 with other carriers 

17 ‘‘An air carrier, including an indirect air carrier, may 

18 establish reasonable joint prices and through service with 

19 another carrier.’’. 

20 (3) by repealing sections 41503, 41505, 41506, 

21 41508, and 41510. 

22 (4) by revising section 41504(a) to read as fol23 lows: 

24 ‘‘(a) FILING AND CONTENTS.—In the way prescribed 

25 by regulation by the Secretary of Transportation, any air 

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1 carrier or foreign air carrier providing foreign air trans2 portation between places designated by the Secretary, and 

3 any air carrier or foreign air carrier granted immunity 

4 from the antitrust laws for the coordination of prices pur5 suant to section 41308 of this title, shall file with the Sec6 retary, publish, and keep open to public inspection, tariffs 

7 showing the prices for the foreign air transportation pro8 vided by the carrier or provided by the carrier and another 

9 air carrier or foreign air carrier in which through service 

10 and joint prices have been established. A tariff— 

11 ‘‘(1) shall contain— 

12 ‘‘(A) to the extent the Secretary requires 

13 by regulation, a description of the classifica14 tions, rules, and practices related to the foreign 

15 air transportation; 

16 ‘‘(B) a statement of the prices in money of 

17 the United States; and 

18 ‘‘(C) other information the Secretary re19 quires by regulation; and 

20 ‘‘(2) may contain— 

21 ‘‘(A) a statement of the prices in money 

22 that is not money of the United States; and 

23 ‘‘(B) information that is required under 

24 the laws of a foreign country in or to which the 

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1 air carrier or foreign air carrier is authorized to 

2 operate.’’; and 

3 (5) by striking subsection 41509(e) and redes4 ignating subsections 41509(f) and (g) as 41509(e) 

5 and (f) respectively. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) The analysis for chapter 415 is amended by 

8 striking the items relating to sections 41503, 41505, 

9 41506, 41508, and 41510; 

10 (2) Section 40109(c) is amended by striking 

11 ‘‘41505,’’; 

12 (3) Section 41110(a)(2)(B) is amended— 

13 (A) by striking ‘‘41503,’’; 

14 (B) by striking ‘‘41506,’’; and 

15 (C) by striking ‘‘41510,’’ 

16 (4) Section 46301 is amended by striking 

17 ‘‘41505,’’. 

18 TITLE IX—INTERNAL REVENUE 

19 CODE AMENDMENTS 

20 SEC. 901. AMENDMENT OF 1986 CODE. 

21 Except as otherwise expressly provided, whenever in 

22 this Title an amendment or repeal is expressed in terms 

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

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

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1 a section or other provision of the Internal Revenue Code 

2 of 1986. 

3 SEC. 902. MODIFICATIONS TO TAX ON AVIATION FUEL. 

4 (a) IN GENERAL.—Effective October 1, 2008, section 

5 4081(a)(2) (relating to rates of tax) is amended— 

6 (1) in paragraph (A) by inserting before the 

7 comma at the end of subparagraph (A)(ii) ‘‘, except 

8 that the rate of tax imposed on and after October 

9 1, 2008, shall be 70.0 cents per gallon’’; 

10 (2) by revising paragraph (C) to read as fol11 lows: 

12 ‘‘(C) TAXES IMPOSED ON FUEL USED IN

13 AVIATION.—In the case of kerosene for use in 

14 aviation, the rate of tax under subparagraph 

15 (A)(iii) shall be— 

16 ‘‘(i) in the case of use for commercial 

17 aviation by a person registered for such 

18 use under section 4101 and in which the 

19 fuel is removed from any refinery or ter20 minal directly into the fuel tank of an air21 craft, 4.3 cents per gallon, except that the 

22 rate of tax imposed on and after October 

23 1, 2008, shall be 13.6 cents per gallon; 

24 and 

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1 ‘‘(ii) in the case of use for aviation 

2 not described in clause (i), 21.8 cents per 

3 gallon, except that the rate of tax imposed 

4 on and after October 1, 2008, shall be 

5 70.0 cents per gallon in a case in which 

6 the fuel is removed from any refinery or 

7 terminal directly into the fuel tank of an 

8 aircraft.’’; and 

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

10 ‘‘(E) INFLATION ADJUSTMENT OF TAX

11 RATES.—In the case of taxable events in a cal12 endar year after 2009, the amount per gallon 

13 specified in subparagraph (C)(i) shall be in14 creased by an amount equal to such amount, 

15 multiplied by the cost-of-living adjustment de16 termined under section 1(f)(3) for such cal17 endar year by substituting ‘‘2008’’ for ‘‘1992’’ 

18 in subparagraph (B) thereof. Any increase de19 termined under the preceding sentence shall be 

20 rounded to the nearest tenth of a cent. 

21 ‘‘(F) ADJUSTMENT OF TAX RATES TO RE22 FLECT COST IMPOSED ON THE SYSTEM.—In the 

23 case of taxable events in a calendar year after 

24 2009, the amount per gallon specified in sub25 paragraphs (A)(ii) and (C)(ii) in excess of the 

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1 rate specified in (C)(i) shall be an amount 

2 based on the costs, as defined in section 

3 45305(b)(6), imposed by operators who use fuel 

4 on which such taxes are paid as determined by 

5 the Federal Aviation Administration’s cost allo6 cation system, and shall be increased or de7 creased once every two years as necessary to 

8 cover such costs by an amount determined by 

9 the Federal Aviation Administration. Any in10 crease or decrease determined under the pre11 ceding sentence shall be rounded to the nearest 

12 tenth of a cent.’’. 

13 (b) CONFORMING CHANGES TO FUEL TAX RATE

14 PROVISIONS.— 

15 (1) TAX RATES UNDER SECTION 4081(d)(2).— 

16 Effective October 1, 2007, section 4081(d)(2) (relat17 ing to aviation fuel tax termination) is amended to 

18 read as follows: 

19 ‘‘(2) AVIATION FUELS.—The rates of tax speci20 fied in subsection (a)(2)(A)(ii), (a)(2)(C)(i), and 

21 (a)(2)(C)(ii) shall be 0.00 cents per gallon after Sep22 tember 30, 2017.’’. 

23 (2) TAX RATES UNDER SECTION 4041.—Effec24 tive October 1, 2008, section 4041(c)(3) (relating to 

25 certain liquids used as a fuel in aviation) is amended 

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1 by inserting before the period at the end of para2 graph (3) ‘‘, except that the rate of tax imposed on 

3 and after October 1, 2008, shall be the rate, after 

4 adjustment for inflation under 4081(a)(2)(E), appli5 cable under section 4081(a)(2)(C)(i) with respect to 

6 any fuel sold for use or used for commercial avia7 tion, and under section 4081(a)(2)(A)(ii) or 

8 4081(a)(2)(C)(ii) with respect to any other fuel sold 

9 for use or used in aircraft.’’. 

10 (c) FUEL TAX REFUND LIMITATIONS.—Effective Oc11 tober 1, 2008, section 6427(l) is amended— 

12 (1) in subsection (l)(4), by inserting before the 

13 period at the end of subsection (l)(4)(A)(ii) ‘‘and, on 

14 and after October 1, 2008, so much of the rate of 

15 tax specified in section 4081(a)(2)(A)(iii) as does 

16 not exceed the tax specified in section 

17 4081(a)(2)(C)(i), after adjustment for inflation 

18 under 4081(a)(2)(E)’’; and 

19 (2) in subsection (l)(5), by inserting before the 

20 period at the end of subsection (l)(5)(A)(ii) ‘‘and, on 

21 and after October 1, 2008, so much of the rate of 

22 tax specified in section 4081(a)(2)(A)(iii) as does 

23 not exceed the tax specified in section 

24 4081(a)(2)(C)(ii), after adjustment for inflation 

25 under 4081(a)(2)(E).’’. 

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1 SEC. 903. MODIFICATIONS TO TAX ON TRANSPORTATION OF 

2 PERSONS BY AIR. 

3 (a) ONE-YEAR EXTENSION OF CURRENT TAXES.— 

4 (1) Section 4261(j)(1)(ii) (relating to imposition of tax on 

5 persons) is amended by striking ‘‘September 30, 2007,’’ 

6 and inserting ‘‘September 30, 2008’’. 

7 (2) Section 4271(d)(1)(A)(ii) (relating to imposition 

8 of tax on property) is amended by striking ‘‘September 

9 30, 2007,’’ and inserting ‘‘September 30, 2008’’. 

10 (b) MODIFICATIONS TO TAXES.—Effective October 1, 

11 2008, section 4261 (relating to imposition of tax) is 

12 amended— 

13 (1) in subsection (c), 

14 (A) by inserting before the period at the 

15 end of subsection (c)(1) ‘‘, except that the rate 

16 of tax imposed for transportation beginning on 

17 and after October 1, 2008, shall be $6.39’’; 

18 (B) by amending subsection (c)(2) to read 

19 as follows: 

20 ‘‘(2) EXCEPTION FOR CERTAIN TRANSPOR21 TATION.—This subsection shall not apply to any 

22 transportation that consumes fuel taxed under sec23 tion 4081(a)(2)(C)(i).’’; 

24 (C) by inserting after ‘‘In any case’’ in 

25 subsection (c)(3) ‘‘involving transportation be26 ginning before October 1, 2008, and’’; and 

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1 (D) by inserting before the period at the 

2 end of subsection (e)(4)(B)(ii) ‘‘, except that 

3 the last nonindexed year is 2009 in the case of 

4 the dollar amounts contained in subsection (c) 

5 that apply to taxable events in a calendar year 

6 after 2009.’’; and 

7 (2) by amending subsection (j) to insert the fol8 lowing at the end: 

9 ‘‘(3) EXTENSION OF TAXABLE PERIOD IN THE

10 CASE OF INTERNATIONAL TRAVEL FACILITIES.— 

11 Notwithstanding paragraph (1), the taxes imposed 

12 by subsection (c) of this section shall apply to— 

13 ‘‘(A) transportation beginning during the 

14 period beginning on March 7, 1997, and ending 

15 on September 30, 2017; and 

16 ‘‘(B) amounts paid during such period for 

17 transportation beginning after such period.’’. 

18 SEC. 904. EXTENSION OF AIRPORT AND AIRWAY TRUST 

19 FUND EXPENDITURE AUTHORITY. 

20 (a) IN GENERAL.—Paragraph (1) of section 9502(d) 

21 of the Internal Revenue Code of 1986 (relating to expendi22 tures from Airport and Airway Trust Fund) is amended— 

23 (1) by striking ‘‘October 1, 2007’’ and inserting 

24 ‘‘October 1, 2017’’; and 

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1 (2) by inserting before the semicolon at the end 

2 of subparagraph (A) the following: ‘‘, or the Next 

3 Generation Air Transportation System Financing 

4 Reform Act of 2007’’. 

5 (b) CONFORMING AMENDMENT.—Paragraph (2) of 

6 section 9502(f) of the Internal Revenue Code of 1986 is 

7 amended by striking ‘‘October 1, 2007’’ and inserting 

8 ‘‘October 1, 2017’’. 

Æ 

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