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 Com-
mittee on Transportation and Infrastructure, and in addition to the Com-
mittees on Science and Technology, and Ways and Means, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend title 49, United States Code, to authorize appro-
priations for the Federal Aviation Administration for 
fiscal years 2008 through 2010, to improve aviation safe-
ty and capacity, to provide stable, cost-based funding 
for the national aviation system, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Next Generation Air Transportation System Financing 
Reform Act of 2007’’. 
(b) TABLE OF CONTENTS.— 
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 op-
erations. 
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 delega-
tion. 
Sec. 411. Judicial review of denial of airman certificates. 
Sec. 412. Release of data relating to abandoned type certificates and supple-
mental 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. 
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or a repeal of, a section or other 
provision, the reference shall be considered to be made to 
a section or other provision of title 49, United States 
Code. 
SEC. 3. EFFECTIVE DATE. 
Except as otherwise expressly provided, this Act and 
the amendments made by this Act shall be effective on 
the date of enactment. 
TITLE I—AUTHORIZATIONS 
SEC. 101. AUTHORIZATIONS FOR SAFETY AND OPERATIONS, 
AIR TRAFFIC FUNCTIONS, RESEARCH AND 
DEVELOPMENT. 
(a) IN GENERAL.—Part C of subtitle VII is amended 
by striking chapter 482 and inserting in lieu thereof the 
following: 
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‘‘CHAPTER 
482—AUTHORIZATIONS 
FOR 
AIR 
TRAFFIC 
FUNCTIONS, 
SAFETY 
AND OPERATIONS, AND RESEARCH 
AND DEVELOPMENT 
‘‘Sec. 
‘‘48201. Air Traffic Organization. 
‘‘48202. Safety and operations. 
‘‘48203. Civil aviation research and development. 
‘‘48204. General fund authorization. 
‘‘§ 48201. Air Traffic Organization 
‘‘(a) AIR TRAFFIC ORGANIZATION ACCOUNT.—On 
October 1, 2007, the Secretary of the Treasury shall es-
tablish on the books of the Treasury a separate account 
to be known as the ‘Air Traffic Organization’. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad-
dition to amounts from the general fund of the Treasury 
as authorized in section 48204, not more than a total of 
the following amounts may be appropriated to the Sec-
retary of Transportation out of the Airport and Airway 
Trust Fund established under section 9502 of the Internal 
Revenue Code of 1986 (26 U.S.C. 9502) for capital, oper-
ating and overhead costs of providing air traffic control 
and related services: 
‘‘(1) $7,915,516,000 for fiscal year 2008; 
‘‘(2) $1,130,000,000 for fiscal year 2009; and 
‘‘(3) $1,126,000,000 for fiscal year 2010. 
‘‘(c) USER FEES.—(1) In addition to amounts au-
thorized under subsection (b), amounts credited to the ac-
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count established under subsection (a) from fees collected 
under section 45305 of this title are authorized to be used 
for capital, operating and overhead costs of providing air 
traffic control and related services, as well as for the costs 
related to the assessment and collection of these fees. 
‘‘(2) Notwithstanding any other provision of law, 
amounts credited to the account established under sub-
section (a) shall be used only to carry out the air traffic 
functions of the Federal Aviation Administration. 
‘‘(d) AVAILABILITY OF AMOUNTS.—Amounts appro-
priated under this section shall remain available until ex-
pended. 
‘‘§ 48202. Safety and operations 
‘‘(a) SAFETY AND OPERATIONS ACCOUNT.—On Oc-
tober 1, 2007, the Secretary of the Treasury shall estab-
lish on the books of the Treasury a separate account to 
be known as the ‘Safety and Operations’. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad-
dition to amounts from the general fund of the Treasury 
as authorized in section 48204, not more than a total of 
the following amounts may be appropriated to the Sec-
retary of Transportation out of the Airport and Airway 
Trust Fund established under section 9502 of the Internal 
Revenue Code of 1986 (26 U.S.C. 9502) for programs, 
activities and services relating to the Federal Aviation Ad-
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ministration’s safety programs, services to the commercial 
space industry and other staff support functions: 
‘‘(1) $671,594,000 for fiscal year 2008; 
‘‘(2) $69,000,000 for fiscal year 2009; and 
‘‘(3) $69,000,000 for fiscal year 2010. 
‘‘(c) USER FEES.—(1) Amounts credited to the ac-
count established under subsection (a) from fees collected 
under sections 45305 and 45306 of this title, are author-
ized to be used for programs, activities and services relat-
ing to the Federal Aviation Administration’s safety pro-
grams and other staff support functions, as well as for 
the costs related to the assessment and collection of these 
fees. 
‘‘(2) Notwithstanding any other provision of law, 
amounts credited to the account established under sub-
section (a) shall be used only to carry out the safety pro-
grams, services to the commercial space industry, and 
staff support functions of the Federal Aviation Adminis-
tration. 
‘‘(d) AVAILABILITY OF AMOUNTS.—Amounts appro-
priated under this section shall remain available until ex-
pended. 
‘‘§ 48203. Civil aviation research and development 
‘‘(a) AUTHORIZATION.—In addition to amounts from 
the general fund of the Treasury as authorized in section 
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48204, not more than the following amounts may be ap-
propriated out of the Airport and Airway Trust Fund es-
tablished under section 9502 of the Internal Revenue Code 
of 1986 (26 U.S.C. 9502), to the Secretary of Transpor-
tation for conducting civil aviation research and develop-
ment under sections 44504, 44505, 44507, 44509, and 
44511–44513 of this title: 
‘‘(1) $122,867,000 for fiscal year 2008; 
‘‘(2) $174,000,000 for fiscal year 2009; and 
‘‘(3) $174,000,000 for fiscal year 2010. 
‘‘(b) AVAILABILITY OF AMOUNTS.—Amounts appro-
priated under this section shall remain available until ex-
pended. 
‘‘§ 48204. General Fund Authorization 
‘‘(a) Not more than the following amounts may be 
appropriated under this chapter from the general fund of 
the Treasury to the Secretary of Transportation for activi-
ties or services, the cost of which is not otherwise funded 
by fees established under chapter 453 of this title or by 
funds made available from the Airport and Airway Trust 
Fund, related to aviation safety regulation and oversight, 
research and development, air traffic services provided to 
military, public or air ambulance aircraft, operation of 
Flight Service Stations and Automated Flight Service Sta-
tions, operation of air traffic control towers at airports 
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with fewer than 100,000 passenger boardings per year, 
services to the commercial space industry, or other Fed-
eral Aviation Administration programs in the general pub-
lic interest, including the capital, operating, and overhead 
costs for such activities or services: 
‘‘(1) $2,618,322,000 for fiscal year 2008; 
‘‘(2) $2,582,000,000 for fiscal year 2009; and 
‘‘(3) $2,582,000,000 for fiscal year 2010.’’. 
‘‘(b) CONFORMING AMENDMENT.—The analysis of 
Part C of Subtitle VII is amended by revising the entry 
for chapter 482 to read as follows: 
‘‘482. Authorizations for air traffic functions, safety and oper-
ations, research and development and general fund ...................
48201.’’. 
SEC. 102. AIRPORT PLANNING AND DEVELOPMENT AND 
NOISE COMPATIBILITY PLANNING AND PRO-
GRAMS. 
(a) AUTHORIZATION.—Section 48103 is amended— 
(1) in the first sentence, by striking ‘‘The’’ and 
inserting ‘‘(a) AUTHORIZATION.—The’’; 
(2) by striking ‘‘September 30, 2003’’ and in-
serting ‘‘September 30, 2007’’; 
(3) by striking paragraphs (1) through (4) and 
inserting the following: 
‘‘(1) $2,750,000,000 for fiscal year 2008; 
‘‘(2) $2,900,000,000 for fiscal year 2009; and 
‘‘(3) $3,050,000,000 for fiscal year 2010.’’; and 
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(4) by inserting at the end the following: 
‘‘(b) 
AIRPORT
COOPERATIVE
RESEARCH
PRO-
GRAM.—Not more than $15,000,000 per year for fiscal 
years 2008, 2009 and 2010 may be appropriated to the 
Secretary of Transportation from the amounts made avail-
able each year under subsection (a) for the Airport Coop-
erative Research Program under section 44511 of this 
title, of which not less than $5,000,000 per year shall be 
for research activities related to the airport environment, 
including reduction of community exposure to civil aircraft 
noise, reduction of civil aviation emissions, or addressing 
water quality issues.’’. 
(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) 
is amended by striking ‘‘September 30, 2007’’ and insert-
ing ‘‘September 30, 2010’’. 
SEC. 103. AIRLINE DATA AND ANALYSIS. 
(a) AUTHORIZATION.—There is authorized to be ap-
propriated to the Secretary of Transportation out of the 
Airport and Airway Trust Fund established by section 
9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502), $4,000,000 per year for fiscal year 2008, and 
$6,000,000 for fiscal years 2009 and 2010 to fund airline 
data collection and analysis by the Bureau of Transpor-
tation Statistics in the Research and Innovative Tech-
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