251 
HR 2881 PCS
experience in the development and deployment of tech-
nology for alternative jet fuels. 
(c) DESIGNATION OF INSTITUTE AS A CENTER OF 
EXCELLENCE.—Not later than 6 months after the date 
of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall designate an institution de-
scribed in subsection (a) as a Center of Excellence for Al-
ternative Jet Fuel Research. 
SEC. 915. CENTER FOR EXCELLENCE IN AVIATION EMPLOY-
MENT. 
(a) ESTABLISHMENT.—The Administrator shall es-
tablish a Center for Excellence in Aviation Employment 
(in this section referred to as the ‘‘Center’’). 
(b) APPLIED RESEARCH AND TRAINING.—The Cen-
ter shall conduct applied research and training on— 
(1) human performance in the air transpor-
tation environment; 
(2) air transportation personnel, including air 
traffic controllers, pilots, and technicians; and 
(3) any other aviation human resource issues 
pertinent to developing and maintaining a safe and 
efficient air transportation system. 
(c) DUTIES.—The Center shall— 
(1) in conjunction with the Collegiate Training 
Initiative and other air traffic controller training 
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HR 2881 PCS
programs, develop, implement, and evaluate a com-
prehensive, best-practices based training program 
for air traffic controllers; 
(2) work with the Office of Human Resource 
Management of the FAA as that office develops and 
implements a strategic recruitment and marketing 
program to help the FAA compete for the best quali-
fied employees and incorporate an employee value 
proposition process that results in attracting a 
broad-based and diverse aviation workforce in mis-
sion critical positions, including air traffic controller, 
aviation safety inspector, airway transportation safe-
ty specialist, and engineer; 
(3) through industry surveys and other research 
methodologies 
and 
in 
partnership 
with 
the 
‘‘Taskforce on the Future of the Aerospace Work-
force’’ and the Secretary of Labor, establish a base-
line of general aviation employment statistics for 
purposes of projecting and anticipating future work-
force needs and demonstrating the economic impact 
of general aviation employment; 
(4) conduct a comprehensive analysis of the air-
frame and powerplant technician certification proc-
ess and employment trends for maintenance repair 
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253 
HR 2881 PCS
organization facilities, certificated repair stations, 
and general aviation maintenance organizations; 
(5) establish a best practices model in aviation 
maintenance technician school environments; and 
(6) establish a workforce retraining program to 
allow for transition of recently unemployed and high-
ly skilled mechanics into aviation employment. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator 
such sums as may be necessary to carry out this section. 
Such sums shall remain available until expended. 
TITLE X—AIRPORT AND AIRWAY 
TRUST FUND FINANCING 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Airport and Airway 
Trust Fund Financing Act of 2007’’. 
SEC. 1002. EXTENSION AND MODIFICATION OF TAXES 
FUNDING 
AIRPORT 
AND 
AIRWAY 
TRUST 
FUND. 
(a) RATE OF TAX ON AVIATION-GRADE KEROSENE 
AND AVIATION GASOLINE.— 
(1) 
AVIATION-GRADE
KEROSENE.—Subpara-
graph (A) of section 4081(a)(2) of the Internal Rev-
enue Code of 1986 (relating to rates of tax) is 
amended by striking ‘‘and’’ at the end of clause (ii), 
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HR 2881 PCS
by striking the period at the end of clause (iii) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(iv) in the case of aviation-grade ker-
osene, 35.9 cents per gallon.’’. 
(2) AVIATION GASOLINE.—Clause (ii) of section 
4081(a)(2)(A) of such Code is amended by striking 
‘‘19.3 cents’’ and inserting ‘‘24.1 cents’’. 
(3) FUEL
REMOVED
DIRECTLY
INTO
FUEL 
TANK OF AIRPLANE USED IN NONCOMMERCIAL AVIA-
TION.—Subparagraph (C) of section 4081(a)(2) of 
such Code is amended to read as follows: 
‘‘(C) TAXES IMPOSED ON FUEL USED IN 
COMMERCIAL AVIATION.—In the case of avia-
tion-grade kerosene which is removed from any 
refinery or terminal directly into the fuel tank 
of an aircraft for use in commercial aviation by 
a person registered for such use under section 
4101, the rate of tax under subparagraph 
(A)(iv) shall be 4.3 cents per gallon.’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Clause (iii) of section 4081(a)(2)(A) of 
such Code is amended by inserting ‘‘other than 
aviation-grade kerosene’’ after ‘‘kerosene’’. 
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HR 2881 PCS
(B) The following provisions of such Code 
are each amended by striking ‘‘kerosene’’ and 
inserting ‘‘aviation-grade kerosene’’: 
(i) Section 4081(a)(3)(A)(ii). 
(ii) Section 4081(a)(3)(A)(iv). 
(iii) Section 4081(a)(3)(D). 
(C) Section 4081(a)(3)(D) of such Code is 
amended— 
(i) by striking ‘‘paragraph (2)(C)(i)’’ 
in clause (i) and inserting ‘‘paragraph 
(2)(C)’’, and 
(ii) by striking ‘‘paragraph (2)(C)(ii)’’ 
in clause (ii) and inserting ‘‘paragraph 
(2)(A)(iv)’’. 
(D) Section 4081(a)(4) of such Code is 
amended in the heading by striking ‘‘KER-
OSENE’’ and inserting ‘‘AVIATION-GRADE KER-
OSENE’’. 
(E) Section 4081(d)(2) of such Code is 
amended by inserting ‘‘, (a)(2)(A)(iv),’’ after 
‘‘subsections (a)(2)(A)(ii)’’. 
(b) EXTENSION.— 
(1) FUELS TAXES.—Paragraph (2) of section 
4081(d) of such Code is amended by striking ‘‘gal-
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256 
HR 2881 PCS
lon—’’ and all that follows and inserting ‘‘gallon 
after September 30, 2011’’. 
(2) TAXES ON TRANSPORTATION OF PERSONS 
AND PROPERTY.— 
(A) PERSONS.—Clause (ii) of section 
4261(j)(1)(A) of such Code is amended by 
striking ‘‘September 30, 2007’’ and inserting 
‘‘September 30, 2011’’. 
(B) PROPERTY.—Clause (ii) of section 
4271(d)(1)(A) of such Code is amended by 
striking ‘‘September 30, 2007’’ and inserting 
‘‘September 30, 2011’’. 
(c) EXEMPTION FOR AVIATION-GRADE KEROSENE 
REMOVED INTO AN AIRCRAFT.—Subsection (e) of section 
4082 of such Code is amended— 
(1) by striking ‘‘kerosene’’ and inserting ‘‘avia-
tion-grade kerosene’’, 
(2) by striking ‘‘section 4081(a)(2)(A)(iii)’’ and 
inserting ‘‘section 4081(a)(2)(A)(iv)’’, and 
(3) by striking ‘‘KEROSENE’’ in the heading 
and inserting ‘‘AVIATION-GRADE KEROSENE’’. 
(d) RETAIL TAX ON AVIATION FUEL.— 
(1) 
EXEMPTION
FOR
PREVIOUSLY
TAXED 
FUEL.—Paragraph (2) of section 4041(c) of such 
Code is amended by inserting ‘‘at the rate specified 
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HR 2881 PCS
in subsection (a)(2)(A)(iv) thereof’’ after ‘‘section 
4081’’. 
(2) RATE OF TAX.—Paragraph (3) of section 
4041(c) of such Code is amended to read as follows: 
‘‘(3) RATE OF TAX.—The rate of tax imposed 
by this subsection shall be the rate of tax in effect 
under section 4081(a)(2)(A)(iv) (4.3 cents per gallon 
with respect to any sale or use for commercial avia-
tion).’’. 
(e) REFUNDS RELATING TO AVIATION-GRADE KER-
OSENE.— 
(1) KEROSENE
USED
IN
COMMERCIAL
AVIA-
TION.—Clause (ii) of section 6427(l)(4)(A) of such 
Code is amended by striking ‘‘specified in section 
4041(c) or 4081(a)(2)(A)(iii), as the case may be,’’ 
and inserting ‘‘so imposed’’. 
(2) KEROSENE USED IN AVIATION.—Paragraph 
(4) of section 6427(l) of such Code is amended— 
(A) by striking subparagraph (B) and re-
designating subparagraph (C) as subparagraph 
(B), and 
(B) by amending subparagraph (B), as re-
designated by subparagraph (A), to read as fol-
lows: 
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HR 2881 PCS
‘‘(B) PAYMENTS
TO
ULTIMATE, 
REG-
ISTERED VENDOR.—With respect to any ker-
osene used in aviation (other than kerosene to 
which paragraph (6) applies), if the ultimate 
purchaser of such kerosene waives (at such time 
and in such form and manner as the Secretary 
shall prescribe) the right to payment under 
paragraph (1) and assigns such right to the ul-
timate vendor, then the Secretary shall pay 
(without interest) the amount which would be 
paid under paragraph (1) to such ultimate ven-
dor, but only if such ultimate vendor— 
‘‘(i) is registered under section 4101, 
and 
‘‘(ii) meets the requirements of sub-
paragraph (A), (B), or (D) of section 
6416(a)(1).’’. 
(3) AVIATION-GRADE KEROSENE NOT USED IN 
AVIATION.—Subsection (l) of section 6427 of such 
Code is amended by redesignating paragraph (5) as 
paragraph (6) and by inserting after paragraph (4) 
the following new paragraph: 
‘‘(5) REFUNDS
FOR
AVIATION-GRADE
KER-
OSENE NOT USED IN AVIATION.—If tax has been im-
posed under section 4081 at the rate specified in 
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259 
HR 2881 PCS
section 4081(a)(2)(A)(iv) and the fuel is used other 
than in an aircraft, the Secretary shall pay (without 
interest) to the ultimate purchaser of such fuel an 
amount equal to the amount of tax imposed on such 
fuel reduced by the amount of tax that would be im-
posed under section 4041 if no tax under section 
4081 had been imposed.’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Section 6427(i)(4) of such Code is 
amended— 
(i) by striking ‘‘(4)(C)’’ the first two 
places it occurs and inserting ‘‘(4)(B)’’, 
and 
(ii) by striking ‘‘, (l)(4)(C)(ii), and’’ 
and inserting ‘‘and’’. 
(B) Section 4082(d)(2)(B) of such Code is 
amended by striking ‘‘6427(l)(5)(B)’’ and in-
serting ‘‘6427(l)(6)(B)’’. 
(f) AIRPORT AND AIRWAY TRUST FUND.— 
(1) EXTENSION
OF
TRUST
FUND
AUTHORI-
TIES.— 
(A) EXPENDITURES FROM TRUST FUND.— 
Paragraph (1) of section 9502(d) of such Code 
is amended— 
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260 
HR 2881 PCS
(i) in the matter preceding subpara-
graph (A) by striking ‘‘October 1, 2007’’ 
and inserting ‘‘October 1, 2011’’, and 
(ii) in subparagraph (A) by inserting 
‘‘or the FAA Reauthorization Act of 2007’’ 
before the semicolon at the end. 
(B) LIMITATION ON TRANSFERS TO TRUST 
FUND.—Paragraph (2) of section 9502(f) of 
such Code is amended by striking ‘‘October 1, 
2007’’ and inserting ‘‘October 1, 2011’’. 
(2) TRANSFERS
TO
TRUST
FUND.—Subpara-
graph (C) of section 9502(b)(1) of such Code is 
amended to read as follows: 
‘‘(C) section 4081 with respect to aviation 
gasoline and aviation-grade kerosene, and’’. 
(3) TRANSFERS ON ACCOUNT OF CERTAIN RE-
FUNDS.— 
(A) IN GENERAL.—Subsection (d) of sec-
tion 9502 of such Code is amended— 
(i) in paragraph (2) by striking 
‘‘(other than subsection (l)(4) thereof)’’, 
and 
(ii) in paragraph (3) by striking 
‘‘(other than payments made by reason of 
paragraph (4) of section 6427(l))’’. 
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261 
HR 2881 PCS
(B) CONFORMING AMENDMENTS.— 
(i) Section 9503(b)(4) of such Code is 
amended by striking ‘‘or’’ at the end of 
subparagraph (C), by striking the period 
at the end of subparagraph (D) and insert-
ing a comma, and by inserting after sub-
paragraph (D) the following: 
‘‘(E) section 4081 to the extent attrib-
utable to the rate specified in clause (ii) or (iv) 
of section 4081(a)(2)(A), or 
‘‘(F) section 4041(c).’’. 
(ii) Section 9503(c) of such Code is 
amended by striking the last paragraph 
(relating to transfers from the Trust Fund 
for certain aviation fuel taxes). 
(iii) Section 9502(a) of such Code is 
amended 
by 
striking 
‘‘, 
section 
9503(c)(7),’’. 
(4) TRANSFERS
ON
ACCOUNT
OF
AVIATION- 
GRADE KEROSENE NOT USED IN AVIATION.—Section 
9502(d) of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(7) TRANSFERS FROM AIRPORT AND AIRWAY 
TRUST
FUND
ON
ACCOUNT
OF
AVIATION-GRADE 
KEROSENE NOT USED IN AVIATION.—The Secretary 
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HR 2881 PCS
of the Treasury shall pay from time to time from the 
Airport and Airway Trust Fund into the Highway 
Trust Fund amounts as determined by the Secretary 
of the Treasury equivalent to amounts transferred to 
the Airport and Airway Trust Fund with respect to 
aviation-grade kerosene not used in aviation.’’. 
(5) EXPENDITURES FOR AIR TRAFFIC CONTROL 
MODERNIZATION.—Section 9502(d) of such Code, as 
amended by this title, is amended by adding at the 
end the following new paragraph: 
‘‘(8) EXPENDITURES
FOR
AIR
TRAFFIC
CON-
TROL
MODERNIZATION.—The following amounts 
may be used only for making expenditures to carry 
out air traffic control modernization: 
‘‘(A) So much of the amounts appropriated 
under subsection (b)(1)(C) as the Secretary es-
timates are attributable to— 
‘‘(i) 14.1 cents per gallon of the tax 
imposed at the rate specified in section 
4081(a)(2)(A)(iv) in the case of aviation- 
grade kerosene used other than in commer-
cial 
aviation 
(as 
defined 
in 
section 
4083(b)), and 
‘‘(ii) 4.8 cents per gallon of the tax 
imposed at the rate specified in section 
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263 
HR 2881 PCS
4081(a)(2)(A)(ii) in the case of aviation 
gasoline used other than in commercial 
aviation (as so defined). 
‘‘(B) Any amounts credited to the Airport 
and Airway Trust Fund under section 9602(b) 
with respect to amounts described in this para-
graph.’’. 
(g) EFFECTIVE DATE.— 
(1) MODIFICATIONS.—Except as provided in 
paragraph (2), the amendments made by this section 
shall apply to fuels removed, entered, or sold after 
December 31, 2007. 
(2) EXTENSIONS.—The amendments made by 
subsections (b) and (f)(1) shall take effect on the 
date of the enactment of this Act. 
(h) FLOOR STOCKS TAX.— 
(1) IMPOSITION OF TAX.—In the case of avia-
tion fuel which is held on January 1, 2008, by any 
person, there is hereby imposed a floor stocks tax on 
aviation fuel equal to— 
(A) the tax which would have been imposed 
before such date on such fuel had the amend-
ments made by this section been in effect at all 
times before such date, reduced by 
(B) the sum of— 
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264 
HR 2881 PCS
(i) the tax imposed before such date 
on such fuel under section 4081 of the In-
ternal Revenue Code of 1986, as in effect 
on such date, and 
(ii) in the case of kerosene held exclu-
sively for such person’s own use, the 
amount which such person would (but for 
this clause) reasonably expect (as of such 
date) to be paid as a refund under section 
6427(l) of such Code with respect to such 
kerosene. 
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
(A) LIABILITY FOR TAX.—A person hold-
ing aviation fuel on January 1, 2008, shall be 
liable for such tax. 
(B) TIME AND METHOD OF PAYMENT.— 
The tax imposed by paragraph (1) shall be paid 
on April 30, 2008, and in such manner as the 
Secretary of the Treasury shall prescribe. 
(3) TRANSFER
OF
FLOOR
STOCK
TAX
REVE-
NUES TO TRUST FUNDS.—For purposes of deter-
mining the amount transferred to the Airport and 
Airway Trust Fund, the tax imposed by this sub-
section shall be treated as imposed by the provision 
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265 
HR 2881 PCS
of section 4081 of the Internal Revenue Code of 
1986 which applies with respect to the aviation fuel 
involved. 
(4) DEFINITIONS.—For purposes of this sub-
section— 
(A) AVIATION FUEL.—The term ‘‘aviation 
fuel’’ means aviation-grade kerosene and avia-
tion gasoline, as such terms are used within the 
meaning of section 4081 of the Internal Rev-
enue Code of 1986. 
(B) HELD BY A PERSON.—Aviation fuel 
shall be considered as held by a person if title 
thereto has passed to such person (whether or 
not delivery to the person has been made). 
(C) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury or the 
Secretary’s delegate. 
(5) EXCEPTION FOR EXEMPT USES.—The tax 
imposed by paragraph (1) shall not apply to any 
aviation fuel held by any person exclusively for any 
use to the extent a credit or refund of the tax is al-
lowable under the Internal Revenue Code of 1986 
for such use. 
(6) EXCEPTION
FOR
CERTAIN
AMOUNTS
OF 
FUEL.— 
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HR 2881 PCS
(A) IN
GENERAL.—No tax shall be im-
posed by paragraph (1) on any aviation fuel 
held on January 1, 2008, by any person if the 
aggregate amount of such aviation fuel held by 
such person on such date does not exceed 2,000 
gallons. The preceding sentence shall apply only 
if such person submits to the Secretary (at the 
time and in the manner required by the Sec-
retary) such information as the Secretary shall 
require for purposes of this subparagraph. 
(B) EXEMPT FUEL.—For purposes of sub-
paragraph (A), there shall not be taken into ac-
count any aviation fuel held by any person 
which is exempt from the tax imposed by para-
graph (1) by reason of paragraph (6). 
(C) CONTROLLED GROUPS.—For purposes 
of this subsection— 
(i) CORPORATIONS.— 
(I) IN
GENERAL.—All persons 
treated as a controlled group shall be 
treated as 1 person. 
(II) CONTROLLED
GROUP.—The 
term ‘‘controlled group’’ has the 
meaning given to such term by sub-
section (a) of section 1563 of such 
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HR 2881 PCS
Code; except that for such purposes 
the phrase ‘‘more than 50 percent’’ 
shall be substituted for the phrase ‘‘at 
least 80 percent’’ each place it ap-
pears in such subsection. 
(ii) 
NONINCORPORATED
PERSONS 
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of subpara-
graph (A) shall apply to a group of per-
sons under common control if 1 or more of 
such persons is not a corporation. 
(7) OTHER LAWS APPLICABLE.—All provisions 
of law, including penalties, applicable with respect to 
the taxes imposed by section 4081 of such Code on 
the aviation fuel involved shall, insofar as applicable 
and not inconsistent with the provisions of this sub-
section, apply with respect to the floor stock taxes 
imposed by paragraph (1) to the same extent as if 
such taxes were imposed by such section. 
Passed the House of Representatives September 20, 
2007. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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Calendar No. 383 
110TH CONGRESS 
1ST SESSION 
H. R. 2881 
AN ACT 
To amend title 49, United States Code, to author-
ize appropriations for the Federal Aviation Ad-
ministration for fiscal years 2008 through 2011, 
to improve aviation safety and capacity, to pro-
vide stable funding for the national aviation sys-
tem, and for other purposes. 
SEPTEMBER 24, 2007 
Received; read twice and placed on the calendar 
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