119 
‘‘(ii) capable of reducing noise, airport 
emissions, or water quality impacts in 
measurably significant amounts.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
subchapter I of chapter 471 is amended by adding at the 
end the following: 
‘‘47143. Environmental mitigation demonstration pilot program.’’. 
SEC. 605. GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT 
PROCEDURES. 
Section 47504 is amended by adding at the end the 
following new subsection: 
‘‘(e) GRANTS FOR ASSESSMENT OF FLIGHT PROCE-
DURES.—(1) The Secretary is authorized in accordance 
with paragraph (c)(1) to make a grant to an airport oper-
ator to assist in completing environmental review and as-
sessment activities for proposals to implement flight proce-
dures that have been approved for airport noise compat-
ibility planning purposes under subsection (b). 
‘‘(2) The Administrator of the Federal Aviation Ad-
ministration may accept funds from an airport sponsor, 
including funds provided to the sponsor under paragraph 
(1), to hire additional staff or obtain the services of con-
sultants in order to facilitate the timely processing, review 
and completion of environmental activities associated with 
proposals to implement flight procedures submitted and 
approved for airport noise compatibility planning purposes 
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in accordance with this section. Funds received under this 
authority shall not be subject to the procedures applicable 
to the receipt of gifts by the Administrator.’’. 
SEC. 606. RESEARCH CONSORTIUM FOR LOWER ENERGY, 
EMISSIONS AND NOISE TECHNOLOGY PART-
NERSHIP. 
(a) ESTABLISHMENT OF CONSORTIUM.—Subchapter 
I of chapter 475 is amended by adding at the end the 
following: 
‘‘§ 47512. Research consortium for lower energy, 
emissions and noise technology partner-
ship 
‘‘(a) CLEEN ENGINE
TECHNOLOGY
PARTNER-
SHIP.—The Administrator of the Federal Aviation Admin-
istration shall enter into a cooperative agreement with the 
Partnership for AiR Transportation Noise and Emissions 
Reduction (PARTNER) Center of Excellence for the de-
velopment, maturing, and certification for Continuous 
Lower Energy, Emissions and Noise (CLEEN) engine and 
airframe technology for aircraft over the next ten years. 
‘‘(b) PERFORMANCE
OBJECTIVE.—The Adminis-
trator shall establish the following performance objectives 
for the program to be completed by 2015: 
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‘‘(1) certifiable aircraft technology that in-
creases aircraft fuel efficiency by 25 percent relative 
to 1997 subsonic aircraft technology; 
‘‘(2) certifiable engine technology that reduces 
landing and takeoff cycle (LTO) nitrogen oxide 
emissions by 50 percent, without increasing other 
gaseous or particle emissions, over the International 
Civil Aviation Organization (ICAO) standard adopt-
ed in 2004; 
‘‘(3) certifiable aircraft technology that reduces 
noise levels by 10 dB relative to 1997 subsonic jet 
aircraft technology; 
‘‘(4) determination of the feasibility of use of 
alternative fuels in aircraft systems, including suc-
cessful demonstration and quantification of benefits; 
and 
‘‘(5) determination of the extent to which new 
engine and aircraft technologies may be used to ret-
rofit or re-engine aircraft so as to increase the level 
of penetration into the commercial fleet. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated from the funding pro-
vided for the Next Generation Air Transportation System 
program such sums as necessary to carry out this section. 
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122 
‘‘(d) The Administrator shall publish a progress re-
port on the CLEEN program each year beginning in 
2009.’’. 
(b) CONFORMING AMENDMENT.—The analysis of 
subchapter I of chapter 475 is amended by adding at the 
end: 
‘‘47512. Research consortium for lower energy, emissions and noise technology 
partnership.’’. 
SEC. 607. AMENDMENTS TO AIR TOUR MANAGEMENT PRO-
GRAM. 
Section 40128 is amended— 
(1) in subsection (a)— 
(A) in clause (1)(C), by striking ‘‘lands.’’ 
and inserting ‘‘lands, or a voluntary agree-
ment.’’; and 
(B) by adding at the end the following: 
‘‘(5) EXEMPTION.—Notwithstanding paragraph 
(1), units of the national park system that have 50 
or fewer commercial air tour flights a year shall be 
exempt from the requirements of this section, except 
that the Director may determine at any time that 
this exemption shall not apply to any park for which 
the Director determines an air tour management 
plan or voluntary agreement is necessary to protect 
park resources and values or park visitor use and 
enjoyment. The Director shall inform the Adminis-
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123 
trator in writing of such determinations. The Direc-
tor and Administrator shall publish an annual list of 
national parks that fall within the exemption pro-
vided by this paragraph. A commercial air tour oper-
ator conducting commercial air tours in a national 
park that is exempt from the requirements of this 
section shall submit to the Administrator and the 
Director an annual report of the number of air tour 
flights it conducts each year in such exempted 
park.’’; 
(2) in subsection (b), by adding at the end the 
following new paragraph: 
‘‘(7) VOLUNTARY AGREEMENTS.—(A) As an al-
ternative to an air tour management plan, for any 
unit of the national park system, the Director and 
the Administrator may enter into a voluntary agree-
ment to manage commercial air tour operations over 
a park unit with any commercial air tour operators 
that have applied for authority to conduct air tour 
operations over the park unit, including existing op-
erators that have interim operating authority, and 
new entrant applicants. 
‘‘(B) Such voluntary agreement shall address 
the management issues necessary to protect park re-
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124 
sources and visitor use without compromising avia-
tion safety, and may— 
‘‘(i) include provisions described in para-
graph (3)(B) through (E); 
‘‘(ii) include provisions to insure the sta-
bility of and compliance with the voluntary 
agreement; and 
‘‘(iii) provide for fees for operating over 
the park. 
‘‘(C) The Director and the Administrator shall 
offer the opportunity for public review of a proposed 
voluntary agreement, and shall consult with any In-
dian tribe whose tribal lands are, or may be, 
overflown by commercial air tour operators under a 
voluntary agreement. 
‘‘(D) Following such public review and con-
sultation, a voluntary agreement may be imple-
mented without further administrative or environ-
mental process. 
‘‘(E) A voluntary agreement may be rescinded 
at the discretion of the Director or the Adminis-
trator if the Director determines that the agreement 
is not adequately protecting park resources or visitor 
experiences, or the Administrator determines that 
the agreement is adversely affecting aviation safety 
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125 
or the national aviation system. If a voluntary agree-
ment for a park is rescinded, the operators must 
conform to the requirements for interim operating 
authority under subsection (c) until an air tour man-
agement plan for the park is in effect.’’; 
(3) in subsection (c)— 
(A) by revising clause (2)(I) to read as fol-
lows: 
‘‘(I) may allow for modifications of the in-
terim operating authority without further envi-
ronmental process provided that— 
‘‘(i) adequate information on the oper-
ator’s existing and proposed operations is 
provided to the Administrator and the Di-
rector by the operator making the request; 
‘‘(ii) the Administrator agrees that 
there would be no adverse impact on avia-
tion safety; and 
‘‘(iii) the Director agrees, based on 
professional expertise regarding the protec-
tion of the park resources and values and 
visitor use and enjoyment.’’; 
(B) in paragraph (3)— 
(i) in clause (A), by striking from ‘‘if 
the Administrator determines’’ through the 
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126 
end and inserting ‘‘without further envi-
ronmental process provided that— 
‘‘(i) adequate information on the oper-
ator’s proposed operations is provided to 
the Administrator and the Director by the 
operator making the request; 
‘‘(ii) the Administrator agrees that 
there would be no adverse impact on avia-
tion safety; and 
‘‘(iii) the Director agrees, based on 
professional expertise regarding the protec-
tion of park resources and values and vis-
itor use and enjoyment.’’; and 
(ii) by striking clause (B) and redesig-
nating clause (C) as (B); 
(4) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(5) inserting new subsection (d) as follows: 
‘‘(d) COMMERCIAL
AIR
TOUR
OPERATOR
RE-
PORTS.—Each commercial air tour operator providing a 
commercial air tour over a national park unit under in-
terim operating authority or in accordance with an air 
tour management plan shall report the number of com-
mercial air tour operations over each park unit and other 
data requested by the Administrator and Director in order 
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127 
to facilitate administering the provisions of this section. 
The reports shall be on a frequency and in a format re-
quested by the Administrator and Director, and shall be 
submitted to both the Administrator and Director or their 
designees. The Administrator and Director shall jointly 
issue an initial request for the reports authorized in this 
subsection no later than three months after the date of 
enactment of this provision.’’. 
TITLE VII—AVIATION 
INSURANCE 
SEC. 701. GENERAL AUTHORITY. 
(a) IN GENERAL.—Section 44302 is amended— 
(1) by repealing subsection (b); and 
(2) in subsection (f)(2)— 
(A) by striking ‘‘paragraph (1)—(A) in’’ 
and inserting ‘‘paragraph (1), in’’; and 
(B) by striking ‘‘2002; and’’ and inserting 
‘‘2002.’’; and 
(C) by striking paragraph (B). 
(b) CONFORMING AMENDMENT.—Section 44303(a) 
is amended by striking ‘‘, or reimburse insurance costs,’’. 
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128 
SEC. 702. EXTENSION OF AUTHORITY TO LIMIT THIRD 
PARTY LIABILITY OF AIR CARRIERS ARISING 
OUT OF ACTS OF TERRORISM. 
Section 44303(b) is amended by striking ‘‘December 
31, 2006’’ and inserting ‘‘December 31, 2011’’. 
SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY. 
Section 44304 is amended in the second sentence by 
striking ‘‘the carrier’’ and inserting ‘‘any insurance car-
rier’’. 
SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS. 
Section 44308 is amended in subsection (c)(1) in the 
second sentence by striking ‘‘agent’’ and inserting ‘‘agent, 
or a claims adjuster who is independent of the under-
writing agent,’’. 
SEC. 705. EXTENSION OF PROGRAM AUTHORITY. 
Section 44310 is amended by striking ‘‘March 30, 
2008.’’ and inserting ‘‘March 30, 2013.’’. 
TITLE VIII—AVIATION SERVICE 
IMPROVMENTS 
SEC. 801. EXTENSION OF COMPETITIVE ACCESS REPORTS. 
Section 47107(s)(3) is amended by striking ‘‘2008’’ 
and inserting ‘‘2012’’. 
SEC. 802. ESSENTIAL AIR SERVICE REFORM. 
(a) DEFINITION.—Section 41731 is amended to read 
as follows: 
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129 
‘‘§ 41731. Definition 
‘‘In this subchapter ‘eligible place’ means a place in 
the United States— 
‘‘(1) that as of the date of enactment of the 
Next Generation Air Transportation System Financ-
ing Reform Act of 2007, was receiving subsidized 
Essential Air Service; 
‘‘(2) that is more than 70 highway miles from 
the nearest medium or large hub airport; and 
‘‘(3) at which the subsidy per passenger does 
not exceed $200 for a community that is less than 
210 miles from the nearest medium or large hub air-
port.’’. 
(b) ESSENTIAL AIR SERVICE.—Section 41732 is 
amended to read as follows: 
‘‘§ 41732. Essential air service 
‘‘Essential air service provided under section 41733 
of this title is transportation of passengers and cargo to 
a destination airport and at a level of service comparable 
to what the community received on the date of enactment 
of the Next Generation Air Transportation System Fi-
nancing Reform Act of 2007.’’. 
(c) 
AVAILABILITY
OF
COMPENSATION.—Section 
41733 is amended to read as follows: 
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130 
‘‘§ 41733. Selection criteria and availability of com-
pensation 
‘‘(a) AVAILABILITY OF COMPENSATION.— 
‘‘(1) If the Secretary decides that essential air 
service under section 41732 will not be provided to 
an eligible place without compensation, the Secretary 
shall provide notice that any air carrier may apply 
to provide essential air service to the place for com-
pensation under this section. In selecting an appli-
cant, the Secretary may consider, among other fac-
tors— 
‘‘(A) the demonstrated reliability of the ap-
plicant in providing air service; 
‘‘(B) the contractual and marketing ar-
rangements the applicant has made with an air 
carrier(s) to ensure service beyond the destina-
tion airport; 
‘‘(C) the interline arrangements that the 
applicant has made with a larger carrier to 
allow passengers and cargo of the applicant at 
the destination airport to be transported by the 
carrier(s) through one reservation, ticket, and 
baggage check-in; 
‘‘(D) the preferences of the actual and po-
tential users of air service at the eligible place, 
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131 
giving substantial weight to the views of the 
elected officials representing the users; and 
‘‘(E) the relative subsidy costs to the 
United States Government based on the appli-
cants’ proposals. 
‘‘(2) Under guidelines prescribed under section 
41737 of this subchapter, the Secretary shall pay 
the rate of compensation for providing essential air 
service under this section and section 41734 of this 
subchapter. 
‘‘(b) COMPENSATION
PAYMENTS.—The Secretary 
shall pay compensation under this section at times and 
in the way the Secretary decides is appropriate. The Sec-
retary shall end payment of compensation to an air carrier 
for providing essential air service to an eligible place when 
the Secretary decides the compensation is no longer nec-
essary to maintain essential air service to the place. 
‘‘(c) REVIEW.—The Secretary shall review periodi-
cally the level of essential air service for each eligible place. 
Based on the review and consultations with the interested 
community and the appropriate State authority of the 
State in which the community is located, the Secretary 
may make appropriate adjustments in the level of service. 
However, the level of service that is subsidized will not 
be more than that which a community is receiving as of 
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132 
the date of enactment of the Next Generation Air Trans-
portation System Financing Reform Act of 2007.’’. 
(d) ENDING, SUSPENDING OR REDUCING ESSENTIAL 
AIR SERVICE.—Section 41734 is amended to read as fol-
lows: 
‘‘§ 41734. Ending, suspending, and reducing essential 
air service 
‘‘(a) NOTICE REQUIRED.—An air carrier may end, 
suspend, or reduce air transportation to an eligible place 
below the level of essential air service established for that 
place under this subchapter only after giving the Secretary 
of Transportation, the appropriate State authority, and 
the affected communities at least 90 days’ notice before 
ending, suspending, or reducing that air service. 
‘‘(b) CONTINUATION
OF SERVICE
FOR 30 DAYS 
AFTER NOTICE PERIOD.—If at the end of the notice pe-
riod under subsection (a) of this section the Secretary has 
not found another air carrier to provide essential air serv-
ice to the eligible place, the Secretary shall require the 
carrier providing notice to continue to provide essential air 
service to the place for an additional 30-day period or until 
another air carrier begins to provide essential air service 
to the place, whichever occurs first. 
‘‘(c) CONTINUATION OF SERVICE FOR ADDITIONAL 
30-DAY PERIODS.—If at the end of the 30-day period 
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