H. R. 658—132 
(4) develop recommendations for appropriate policies and 
guidelines to facilitate a transition to unleaded aviation fuel 
for piston engine aircraft. 
(c) COLLABORATION.—In carrying out the program under sub-
section (a), the Administrator shall collaborate with— 
(1) industry groups representing aviation consumers, 
manufacturers, and fuel producers and distributors; and 
(2) other appropriate Federal agencies. 
(d) REPORT.—Not later than 270 days after the date of enact-
ment of this Act, the Administrator shall provide to the Committee 
on Science, Space, and Technology of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of 
the Senate a report on the plan, information obtained, and policies 
and guidelines developed pursuant to subsection (b). 
SEC. 911. RESEARCH PROGRAM ON ALTERNATIVE JET FUEL TECH-
NOLOGY FOR CIVIL AIRCRAFT. 
(a) IN GENERAL.—Using amounts made available under section 
48102(a) of title 49, United States Code, the Administrator shall 
establish a research program to assist in the development and 
qualification of jet fuel from alternative sources (such as natural 
gas, biomass, ethanol, butanol, and hydrogen) and other renewable 
sources. 
(b) AUTHORITY TO MAKE GRANTS.—The Administrator shall 
carry out the program through the use of grants or other measures 
authorized under section 106(l)(6) of such title, including reimburs-
able agreements with other Federal agencies. 
(c) PARTICIPATION IN PROGRAM.— 
(1) PARTICIPATION OF EDUCATIONAL AND RESEARCH INSTITU-
TIONS.—In carrying out the program, the Administrator shall 
include participation by— 
(A) educational and research institutions that have 
existing facilities and leverage private sector partnerships; 
and 
(B) consortia with experience across the supply chain, 
including with research, feedstock development and produc-
tion, small-scale development, testing, and technology 
evaluation related to the creation, processing, production, 
and transportation of alternative aviation fuel. 
(2) USE OF NASA FACILITIES.—In carrying out the program, 
the Administrator shall consider utilizing the existing capacity 
in aeronautics research at Langley Research Center, Glenn 
Research Center, and other appropriate facilities of NASA. 
(d) DESIGNATION
OF INSTITUTION
AS
A CENTER
OF EXCEL-
LENCE.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of enactment of this Act, the Administrator may designate 
an institution described in subsection (c)(1)(A) as a Center 
of Excellence for Alternative Jet-Fuel Research in Civil Aircraft. 
(2) EFFECT OF DESIGNATION.—The center designated under 
paragraph (1) shall become, upon its designation— 
(A) a member of the Consortium for Continuous Low 
Energy, Emissions, and Noise of the FAA; and 
(B) part of a Joint Center of Excellence with the Part-
nership for Air Transportation Noise and Emission Reduc-
tion FAA Center of Excellence.
H. R. 658—133 
SEC. 912. REVIEW OF FAA’S ENERGY-RELATED AND ENVIRONMENT- 
RELATED RESEARCH PROGRAMS. 
(a) REVIEW.—Using amounts made available under section 
48102(a) of title 49, United States Code, the Administrator shall 
enter into an arrangement for an independent external review 
of FAA energy-related and environment-related research programs. 
The review shall assess whether— 
(1) the programs have well-defined, prioritized, and appro-
priate research objectives; 
(2) the programs are properly coordinated with the energy- 
related and environment-related research programs at NASA, 
NOAA, and other relevant agencies; 
(3) the programs have allocated appropriate resources to 
each of the research objectives; and 
(4) there exist suitable mechanisms for transitioning the 
research results into the FAA’s operational technologies and 
procedures and certification activities. 
(b) REPORT.—Not later than 18 months after the date of enact-
ment of this Act, the Administrator shall submit a report to the 
Committee on Science, Space, and Technology of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate containing the results of the review. 
SEC. 913. REVIEW OF FAA’S AVIATION SAFETY-RELATED RESEARCH 
PROGRAMS. 
(a) REVIEW.—Using amounts made available under section 
48102(a) of title 49, United States Code, the Administrator shall 
enter into an arrangement for an independent external review 
of the FAA’s aviation safety-related research programs. The review 
shall assess whether— 
(1) the programs have well-defined, prioritized, and appro-
priate research objectives; 
(2) the programs are properly coordinated with the safety 
research programs of NASA and other relevant Federal agen-
cies; 
(3) the programs have allocated appropriate resources to 
each of the research objectives; 
(4) the programs should include a determination about 
whether a survey of participants across the air transportation 
system is an appropriate way to study safety risks within 
such system; and 
(5) there exist suitable mechanisms for transitioning the 
research results from the programs into the FAA’s operational 
technologies and procedures and certification activities in a 
timely manner. 
(b) AVIATION SAFETY-RELATED RESEARCH PROGRAMS TO BE 
ASSESSED.—The FAA aviation safety-related research programs to 
be assessed under the review shall include, at a minimum, the 
following: 
(1) Air traffic control/technical operations human factors. 
(2) Runway incursion reduction. 
(3) Flightdeck/maintenance system integration human fac-
tors. 
(4) Airports technology research—safety. 
(5) Airport Cooperative Research Program— safety. 
(6) Weather Program. 
(7) Atmospheric hazards/digital system safety.
H. R. 658—134 
(8) Fire research and safety. 
(9) Propulsion and fuel systems. 
(10) Advanced materials/structural safety. 
(11) Aging aircraft. 
(12) Aircraft catastrophic failure prevention research. 
(13) Aeromedical research. 
(14) Aviation safety risk analysis. 
(15) Unmanned aircraft systems research. 
(c) REPORT.—Not later than 14 months after the date of enact-
ment of this Act, the Administrator shall submit to the Committee 
on Science, Space, and Technology of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of 
the Senate a report on the results of the review. 
SEC. 914. PRODUCTION OF CLEAN COAL FUEL TECHNOLOGY FOR 
CIVILIAN AIRCRAFT. 
(a) ESTABLISHMENT OF RESEARCH PROGRAM.—Using amounts 
made available under section 48102(a) of title 49, United States 
Code, the Administrator shall establish a research program related 
to developing jet fuel from clean coal. 
(b) AUTHORITY TO MAKE GRANTS.—The Administrator shall 
carry out the program through grants or other measures authorized 
under section 106(l)(6) of such title, including reimbursable agree-
ments with other Federal agencies. 
(c) PARTICIPATION IN PROGRAM.—In carrying out the program, 
the Administrator shall include participation by educational and 
research institutions that have existing facilities and experience 
in the development and deployment of technology that processes 
coal into aviation fuel. 
(d) DESIGNATION
OF INSTITUTION
AS
A CENTER
OF EXCEL-
LENCE.—Not later than 180 days after the date of enactment of 
this Act, the Administrator may designate an institution described 
in subsection (c) as a Center of Excellence for Coal-to-Jet-Fuel 
Research. 
SEC. 915. WAKE TURBULENCE, VOLCANIC ASH, AND WEATHER 
RESEARCH. 
Not later than 60 days after the date of enactment of this 
Act, the Administrator shall— 
(1) initiate an evaluation of proposals related to research 
on the nature of wake vortexes that would increase national 
airspace system capacity by reducing existing spacing require-
ments between aircraft of all sizes; 
(2) begin implementation of a system to improve volcanic 
ash avoidance options for aircraft, including the development 
of a volcanic ash warning and notification system for aviation; 
and 
(3) coordinate with NOAA, NASA, and other appropriate 
Federal agencies to conduct research to reduce the hazards 
presented to commercial aviation related to— 
(A) ground de-icing and anti-icing, ice pellets, and 
freezing drizzle; 
(B) oceanic weather, including convective weather; 
(C) en route turbulence prediction and detection; and 
(D) all hazards during oceanic operations, where 
commercial traffic is high and only rudimentary satellite 
sensing is available.
H. R. 658—135 
SEC. 916. REAUTHORIZATION OF CENTER OF EXCELLENCE IN APPLIED 
RESEARCH AND TRAINING IN THE USE OF ADVANCED 
MATERIALS IN TRANSPORT AIRCRAFT. 
Section 708(b) of the Vision 100—Century of Aviation Reauthor-
ization Act (49 U.S.C. 44504 note) is amended by striking ‘‘for 
fiscal year 2004’’ and inserting ‘‘for each of fiscal years 2012 through 
2015’’. 
SEC. 917. RESEARCH AND DEVELOPMENT OF EQUIPMENT TO CLEAN 
AND MONITOR THE ENGINE AND APU BLEED AIR SUP-
PLIED ON PRESSURIZED AIRCRAFT. 
(a) IN GENERAL.—Not later than 60 days after the date of 
enactment of this Act, the Administrator, to the extent practicable, 
shall implement a research program for the identification or 
development of appropriate and effective air cleaning technology 
and sensor technology for the engine and auxiliary power unit 
bleed air supplied to the passenger cabin and flight deck of a 
pressurized aircraft. 
(b) TECHNOLOGY REQUIREMENTS.—The technology referred to 
in subsection (a) shall have the capacity, at a minimum— 
(1) to remove oil-based contaminants from the bleed air 
supplied to the passenger cabin and flight deck; and 
(2) to detect and record oil-based contaminants in the por-
tion of the total air supplied to the passenger cabin and flight 
deck from bleed air. 
(c) REPORT.—Not later than 1 year after the date of enactment 
of this Act, the Administrator shall submit to the Committee on 
Commerce, Science, and Transportation of the Senate and the Com-
mittee on Transportation and Infrastructure and the Committee 
on Science, Space, and Technology of the House of Representatives 
a report on the results of the research and development work 
carried out under this section. 
SEC. 918. EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR 
NEXTGEN. 
(a) REVIEW.—The Administrator shall enter into an arrange-
ment for an independent external review of the enterprise architec-
ture for the Next Generation Air Transportation System. 
(b) CONTENTS.—At a minimum, the review to be conducted 
under subsection (a) shall— 
(1) highlight the technical activities, including human- 
system design, organizational design, and other safety and 
human factor aspects of the system, that will be necessary 
to successfully transition current and planned modernization 
programs to the future system envisioned by the Joint Planning 
and Development Office of the FAA; 
(2) assess technical, cost, and schedule risk for the software 
development that will be necessary to achieve the expected 
benefits from a highly automated air traffic management 
system and the implications for ongoing modernization projects; 
and 
(3) determine how risks with automation efforts for the 
Next Generation Air Transportation System can be mitigated 
based on the experiences of other public or private entities 
in developing complex, software-intensive systems. 
(c) REPORT.—Not later than 1 year after the date of enactment 
of this Act, the Administrator shall submit to the Committee on
H. R. 658—136 
Transportation and Infrastructure and the Committee on Science, 
Space, and Technology of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the Senate 
a report containing the results of the review conducted pursuant 
to subsection (a). 
SEC. 919. AIRPORT SUSTAINABILITY PLANNING WORKING GROUP. 
(a) IN GENERAL.—Not later than 90 days after the date of 
enactment of this Act, the Administrator shall prepare and submit 
a problem statement to the Transportation Research Board for 
the purpose of initiating a study under the Airport Cooperative 
Research Program on airport sustainability practices. 
(b) FUNCTIONS.—The purpose of the study shall be— 
(1) to examine and develop best airport practices and 
metrics for the sustainable design, construction, planning, 
maintenance, and operation of an airport; 
(2) to examine potential standards for a rating system 
based on the best sustainable practices and metrics; 
(3) to examine potential standards for a voluntary airport 
rating process based on the best sustainable practices, metrics, 
and ratings; and 
(4) to examine and develop recommendations for future 
actions with regard to sustainability. 
(c) REPORT.—Not later than 18 months after the date of initi-
ation of the study, a report on the study shall be submitted to 
the Administrator and the Committee on Science, Space, and Tech-
nology of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate. 
TITLE X—NATIONAL MEDIATION BOARD 
SEC. 1001. RULEMAKING AUTHORITY. 
Title I of the Railway Labor Act (45 U.S.C. 151 et seq.) is 
amended by inserting after section 10 the following: 
‘‘SEC. 10A. RULES AND REGULATIONS. 
‘‘(a) IN
GENERAL.—The Mediation Board shall have the 
authority from time to time to make, amend, and rescind, in the 
manner prescribed by section 553 of title 5, United States Code, 
and after opportunity for a public hearing, such rules and regula-
tions as may be necessary to carry out the provisions of this Act. 
‘‘(b) APPLICATION.—The requirements of subsection (a) shall 
not apply to any rule or proposed rule to which the third sentence 
of section 553(b) of title 5, United States Code, applies.’’. 
SEC. 1002. RUNOFF ELECTION RULES. 
Paragraph Ninth of section 2 of the Railway Labor Act (45 
U.S.C. 152) is amended by inserting after the fourth sentence 
the following: ‘‘In any such election for which there are 3 or more 
options (including the option of not being represented by any labor 
organization) on the ballot and no such option receives a majority 
of the valid votes cast, the Mediation Board shall arrange for 
a second election between the options receiving the largest and 
the second largest number of votes.’’.
H. R. 658—137 
SEC. 1003. BARGAINING REPRESENTATIVE CERTIFICATION. 
Section 2 of the Railway Labor Act (45 U.S.C. 152) is amended 
by adding at the end the following: 
‘‘Twelfth. Showing of interest for representation elections. The 
Mediation Board, upon receipt of an application requesting that 
an organization or individual be certified as the representative 
of any craft or class of employees, shall not direct an election 
or use any other method to determine who shall be the representa-
tive of such craft or class unless the Mediation Board determines 
that the application is supported by a showing of interest from 
not less than 50 percent of the employees in the craft or class.’’. 
SEC. 1004. OVERSIGHT. 
Title I of the Railway Labor Act (45 U.S.C. 151 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 15. EVALUATION AND AUDIT OF MEDIATION BOARD. 
‘‘(a) EVALUATION AND AUDIT OF MEDIATION BOARD.— 
‘‘(1) IN GENERAL.—In order to promote economy, efficiency, 
and effectiveness in the administration of the programs, oper-
ations, and activities of the Mediation Board, the Comptroller 
General of the United States shall evaluate and audit the 
programs and expenditures of the Mediation Board. Such an 
evaluation and audit shall be conducted not less frequently 
than every 2 years, but may be conducted as determined nec-
essary by the Comptroller General or the appropriate congres-
sional committees. 
‘‘(2) RESPONSIBILITY OF COMPTROLLER GENERAL.—In car-
rying out the evaluation and audit required under paragraph 
(1), the Comptroller General shall evaluate and audit the pro-
grams, operations, and activities of the Mediation Board, 
including, at a minimum— 
‘‘(A) information management and security, including 
privacy protection of personally identifiable information; 
‘‘(B) resource management; 
‘‘(C) workforce development; 
‘‘(D) procurement and contracting planning, practices, 
and policies; 
‘‘(E) the extent to which the Mediation Board follows 
leading practices in selected management areas; and 
‘‘(F) the processes the Mediation Board follows to 
address challenges in— 
‘‘(i) initial investigations of applications requesting 
that an organization or individual be certified as the 
representative of any craft or class of employees; 
‘‘(ii) determining and certifying representatives of 
employees; and 
‘‘(iii) ensuring that the process occurs without 
interference, influence, or coercion. 
‘‘(b) IMMEDIATE REVIEW OF CERTIFICATION PROCEDURES.—Not 
later than 180 days after the date of enactment of this section, 
the Comptroller General shall review the processes applied by the 
Mediation Board to certify or decertify representation of employees 
by a labor organization and make recommendations to the Board 
and appropriate congressional committees regarding actions that 
may be taken by the Board or Congress to ensure that the processes
H. R. 658—138 
are fair and reasonable for all parties. Such review shall be con-
ducted separately from any evaluation and audit under subsection 
(a) and shall include, at a minimum— 
‘‘(1) an evaluation of the existing processes and changes 
to such processes that have occurred since the establishment 
of the Mediation Board and whether those changes are con-
sistent with congressional intent; and 
‘‘(2) a description of the extent to which such processes 
are consistent with similar processes applied to other Federal 
or State agencies with jurisdiction over labor relations, and 
an evaluation of any justifications for any discrepancies between 
the processes of the Mediation Board and such similar Federal 
or State processes. 
‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEE DEFINED.—In 
this section, the term ‘appropriate congressional committees’ means 
the Committee on Transportation and Infrastructure of the House 
of Representatives, the Committee on Commerce, Science, and 
Transportation of the Senate, and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate.’’. 
TITLE XI—AIRPORT AND AIRWAY TRUST 
FUND 
PROVISIONS 
AND 
RELATED 
TAXES 
SEC. 1100. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in this title 
an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision of the 
Internal Revenue Code of 1986. 
SEC. 1101. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY 
TRUST FUND. 
(a) FUEL TAXES.—Subparagraph (B) of section 4081(d)(2) is 
amended by striking ‘‘February 17, 2012’’ and inserting ‘‘September 
30, 2015’’. 
(b) TICKET TAXES.— 
(1) PERSONS.—Clause (ii) of section 4261(j)(1)(A) is 
amended by striking ‘‘February 17, 2012’’ and inserting ‘‘Sep-
tember 30, 2015’’. 
(2) PROPERTY.—Clause (ii) of section 4271(d)(1)(A) is 
amended by striking ‘‘February 17, 2012’’ and inserting ‘‘Sep-
tember 30, 2015’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on February 18, 2012. 
SEC. 1102. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND 
EXPENDITURE AUTHORITY. 
(a) IN GENERAL.—Paragraph (1) of section 9502(d) is amended— 
(1) by striking ‘‘February 18, 2012’’ in the matter preceding 
subparagraph (A) and inserting ‘‘October 1, 2015’’, and 
(2) by striking the semicolon at the end of subparagraph 
(A) and inserting ‘‘or the FAA Modernization and Reform Act 
of 2012;’’.
H. R. 658—139 
(b) CONFORMING AMENDMENT.—Paragraph (2) of section 9502(e) 
is amended by striking ‘‘February 18, 2012’’ and inserting ‘‘October 
1, 2015’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on February 18, 2012. 
SEC. 1103. TREATMENT OF FRACTIONAL AIRCRAFT OWNERSHIP PRO-
GRAMS. 
(a) FUEL SURTAX.— 
(1) IN GENERAL.—Subchapter B of chapter 31 is amended 
by adding at the end the following new section: 
‘‘SEC. 4043. SURTAX ON FUEL USED IN AIRCRAFT PART OF A FRAC-
TIONAL OWNERSHIP PROGRAM. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax on any liquid 
used (during any calendar quarter by any person) in a fractional 
program aircraft as fuel— 
‘‘(1) for the transportation of a qualified fractional owner 
with respect to the fractional ownership aircraft program of 
which such aircraft is a part, or 
‘‘(2) with respect to the use of such aircraft on account 
of such a qualified fractional owner, including use in deadhead 
service. 
‘‘(b) AMOUNT OF TAX.—The rate of tax imposed by subsection 
(a) is 14.1 cents per gallon. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
section— 
‘‘(1) FRACTIONAL PROGRAM AIRCRAFT.—The term ‘fractional 
program aircraft’ means, with respect to any fractional owner-
ship aircraft program, any aircraft which— 
‘‘(A) is listed as a fractional program aircraft in the 
management specifications issued to the manager of such 
program by the Federal Aviation Administration under 
subpart K of part 91 of title 14, Code of Federal Regula-
tions, and 
‘‘(B) is registered in the United States. 
‘‘(2) FRACTIONAL OWNERSHIP AIRCRAFT PROGRAM.—The term 
‘fractional ownership aircraft program’ means a program under 
which— 
‘‘(A) a single fractional ownership program manager 
provides fractional ownership program management serv-
ices on behalf of the fractional owners, 
‘‘(B) there are 1 or more fractional owners per fractional 
program aircraft, with at least 1 fractional program aircraft 
having more than 1 owner, 
‘‘(C) with respect to at least 2 fractional program air-
craft, none of the ownership interests in such aircraft are— 
‘‘(i) less than the minimum fractional ownership 
interest, or 
‘‘(ii) held by the program manager referred to in 
subparagraph (A), 
‘‘(D) there exists a dry-lease aircraft exchange arrange-
ment among all of the fractional owners, and 
‘‘(E) there are multi-year program agreements covering 
the fractional ownership, fractional ownership program 
management services, and dry-lease aircraft exchange 
aspects of the program.
H. R. 658—140 
‘‘(3) DEFINITIONS
RELATED
TO
FRACTIONAL
OWNERSHIP 
INTERESTS.— 
‘‘(A) QUALIFIED FRACTIONAL OWNER.—The term ‘quali-
fied fractional owner’ means any fractional owner which 
has a minimum fractional ownership interest in at least 
one fractional program aircraft. 
‘‘(B) MINIMUM FRACTIONAL OWNERSHIP INTEREST.—The 
term ‘minimum fractional ownership interest’ means, with 
respect to each type of aircraft— 
‘‘(i) a fractional ownership interest equal to or 
greater than 1/16 of at least 1 subsonic, fixed wing, 
or powered lift aircraft, or 
‘‘(ii) a fractional ownership interest equal to or 
greater than 1/32 of at least 1 rotorcraft aircraft. 
‘‘(C) FRACTIONAL
OWNERSHIP
INTEREST.—The term 
‘fractional ownership interest’ means— 
‘‘(i) the ownership of an interest in a fractional 
program aircraft, 
‘‘(ii) the holding of a multi-year leasehold interest 
in a fractional program aircraft, or 
‘‘(iii) the holding of a multi-year leasehold interest 
which is convertible into an ownership interest in a 
fractional program aircraft. 
‘‘(D) FRACTIONAL OWNER.—The term ‘fractional owner’ 
means any person owning any interest (including the entire 
interest) in a fractional program aircraft. 
‘‘(4) DRY-LEASE AIRCRAFT EXCHANGE.—The term ‘dry-lease 
aircraft exchange’ means an agreement, documented by the 
written program agreements, under which the fractional pro-
gram aircraft are available, on an as needed basis without 
crew, to each fractional owner. 
‘‘(5) SPECIAL RULE RELATING TO USE OF FRACTIONAL PRO-
GRAM AIRCRAFT FOR FLIGHT DEMONSTRATION, MAINTENANCE, OR 
TRAINING.—For purposes of subsection (a), a fractional program 
aircraft shall not be considered to be used for the transportation 
of a qualified fractional owner, or on account of such qualified 
fractional owner, when it is used for flight demonstration, 
maintenance, or crew training. 
‘‘(6) SPECIAL
RULE
RELATING
TO
DEADHEAD
SERVICE.—A 
fractional program aircraft shall not be considered to be used 
on account of a qualified fractional owner when it is used 
in deadhead service and a person other than a qualified frac-
tional owner is separately charged for such service. 
‘‘(d) TERMINATION.—This section shall not apply to liquids used 
as a fuel in an aircraft after September 30, 2021.’’. 
(2) CONFORMING
AMENDMENT.—Subsection (e) of section 
4082 is amended by inserting ‘‘(other than kerosene with 
respect to which tax is imposed under section 4043)’’ after 
‘‘In the case of kerosene’’. 
(3) TRANSFER OF REVENUES TO AIRPORT AND AIRWAY TRUST 
FUND.—Paragraph (1) of section 9502(b) is amended by redesig-
nating subparagraphs (B) and (C) as subparagraphs (C) and 
(D), respectively, and by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) section 4043 (relating to surtax on fuel used in 
aircraft part of a fractional ownership program),’’.
H. R. 658—141 
(4) CLERICAL AMENDMENT.—The table of sections for sub-
chapter B of chapter 31 is amended by adding at the end 
the following new item: 
‘‘Sec. 4043. Surtax on fuel used in aircraft part of a fractional ownership program.’’. 
(b) FRACTIONAL
OWNERSHIP
PROGRAMS
TREATED
AS
NON- 
COMMERCIAL AVIATION.—Subsection (b) of section 4083 is amended 
by adding at the end the following new sentence: ‘‘Such term 
shall not include the use of any aircraft before October 1, 2015, 
if tax is imposed under section 4043 with respect to the fuel con-
sumed in such use or if no tax is imposed on such use under 
section 4043 by reason of subsection (c)(5) thereof.’’. 
(c) EXEMPTION FROM TAX ON TRANSPORTATION OF PERSONS.— 
Section 4261, as amended by this Act, is amended by redesignating 
subsection (j) as subsection (k) and by inserting after subsection 
(i) the following new subsection: 
‘‘(j) EXEMPTION FOR AIRCRAFT IN FRACTIONAL OWNERSHIP AIR-
CRAFT PROGRAMS.—No tax shall be imposed by this section or 
section 4271 on any air transportation if tax is imposed under 
section 4043 with respect to the fuel used in such transportation. 
This subsection shall not apply after September 30, 2015.’’. 
(d) EFFECTIVE DATES.— 
(1) SUBSECTION (a).—The amendments made by subsection 
(a) shall apply to fuel used after March 31, 2012. 
(2) SUBSECTION (b).—The amendment made by subsection 
(b) shall apply to uses of aircraft after March 31, 2012. 
(3) SUBSECTION (c).—The amendments made by subsection 
(c) shall apply to taxable transportation provided after March 
31, 2012. 
SEC. 1104. TRANSPARENCY IN PASSENGER TAX DISCLOSURES. 
(a) IN GENERAL.—Section 7275 is amended— 
(1) by redesignating subsection (c) as subsection (d), 
(2) by striking ‘‘subsection (a) or (b)’’ in subsection (d), 
as so redesignated, and inserting ‘‘subsection (a), (b), or (c)’’, 
and 
(3) by inserting after subsection (b) the following new sub-
section: 
‘‘(c) NON-TAX CHARGES.— 
‘‘(1) IN
GENERAL.—In the case of transportation by air 
for which disclosure on the ticket or advertising for such 
transportation of the amounts paid for passenger taxes is 
required by subsection (a)(2) or (b)(1)(B), if such amounts are 
separately disclosed, it shall be unlawful for the disclosure 
of such amounts to include any amounts not attributable to 
such taxes. 
‘‘(2) INCLUSION IN TRANSPORTATION COST.—Nothing in this 
subsection shall prohibit the inclusion of amounts not attrib-
utable to the taxes imposed by subsection (a), (b), or (c) of 
section 4261 in the disclosure of the amount paid for transpor-
tation as required by subsection (a)(1) or (b)(1)(A), or in a 
separate disclosure of amounts not attributable to such taxes.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable transportation provided after March 31, 2012.
H. R. 658—142 
SEC. 1105. TAX-EXEMPT BOND FINANCING FOR FIXED-WING EMER-
GENCY MEDICAL AIRCRAFT. 
(a) IN GENERAL.—Subsection (e) of section 147 is amended 
by adding at the end the following new sentence: ‘‘The preceding 
sentence shall not apply to any fixed-wing aircraft equipped for, 
and exclusively dedicated to providing, acute care emergency med-
ical services (within the meaning of section 4261(g)(2)).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to obligations issued after the date of the enactment 
of this Act. 
SEC. 1106. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER 
BANKRUPTCY. 
(a) GENERAL RULES.— 
(1) ROLLOVER OF AIRLINE PAYMENT AMOUNT.—If a qualified 
airline employee receives any airline payment amount and 
transfers any portion of such amount to a traditional IRA 
within 180 days of receipt of such amount (or, if later, within 
180 days of the date of the enactment of this Act), then such 
amount (to the extent so transferred) shall be treated as a 
rollover contribution described in section 402(c) of the Internal 
Revenue Code of 1986. A qualified airline employee making 
such a transfer may exclude from gross income the amount 
transferred, in the taxable year in which the airline payment 
amount was paid to the qualified airline employee by the 
commercial passenger airline carrier. 
(2) TRANSFER OF AMOUNTS ATTRIBUTABLE TO AIRLINE PAY-
MENT AMOUNT FOLLOWING ROLLOVER TO ROTH IRA.—A qualified 
airline employee who has contributed an airline payment 
amount to a Roth IRA that is treated as a qualified rollover 
contribution pursuant to section 125 of the Worker, Retiree, 
and Employer Recovery Act of 2008, may transfer to a tradi-
tional IRA, in a trustee-to-trustee transfer, all or any part 
of the contribution (together with any net income allocable 
to such contribution), and the transfer to the traditional IRA 
will be deemed to have been made at the time of the rollover 
to the Roth IRA, if such transfer is made within 180 days 
of the date of the enactment of this Act. A qualified airline 
employee making such a transfer may exclude from gross 
income the airline payment amount previously rolled over to 
the Roth IRA, to the extent an amount attributable to the 
previous rollover was transferred to a traditional IRA, in the 
taxable year in which the airline payment amount was paid 
to the qualified airline employee by the commercial passenger 
airline carrier. No amount so transferred to a traditional IRA 
may be treated as a qualified rollover contribution with respect 
to a Roth IRA within the 5-taxable year period beginning 
with the taxable year in which such transfer was made. 
(3) EXTENSION OF TIME TO FILE CLAIM FOR REFUND.—A 
qualified airline employee who excludes an amount from gross 
income in a prior taxable year under paragraph (1) or (2) 
may reflect such exclusion in a claim for refund filed within 
the period of limitation under section 6511(a) of such Code 
(or, if later, April 15, 2013). 
(4) OVERALL
LIMITATION
ON
AMOUNTS
TRANSFERRED
TO 
TRADITIONAL IRAS.—
H. R. 658—143 
(A) IN GENERAL.—The aggregate amount of airline pay-
ment amounts which may be transferred to 1 or more 
traditional IRAs under paragraphs (1) and (2) with respect 
to any qualified employee for any taxable year shall not 
exceed the excess (if any) of— 
(i) 90 percent of the aggregate airline payment 
amounts received by the qualified airline employee 
during the taxable year and all preceding taxable 
years, over 
(ii) the aggregate amount of such transfers to 
which paragraphs (1) and (2) applied for all preceding 
taxable years. 
(B) SPECIAL
RULES.—For purposes of applying the 
limitation under subparagraph (A)— 
(i) any airline payment amount received by the 
surviving spouse of any qualified employee, and any 
amount transferred to a traditional IRA by such spouse 
under subsection (d), shall be treated as an amount 
received or transferred by the qualified employee, and 
(ii) any amount transferred to a traditional IRA 
which is attributable to net income described in para-
graph (2) shall not be taken into account. 
(5) COVERED EXECUTIVES NOT ELIGIBLE TO MAKE TRANS-
FERS.—Paragraphs (1) and (2) shall not apply to any transfer 
by a qualified airline employee (or any transfer authorized 
under subsection (d) by a surviving spouse of the qualified 
airline employee) if at any time during the taxable year of 
the transfer or any preceding taxable year the qualified airline 
employee held a position described in subparagraph (A) or 
(B) of section 162(m)(3) with the commercial passenger airline 
carrier from whom the airline payment amount was received. 
(b) TREATMENT OF AIRLINE PAYMENT AMOUNTS AND TRANSFERS 
FOR EMPLOYMENT TAXES.—For purposes of chapter 21 of the 
Internal Revenue Code of 1986 and section 209 of the Social Security 
Act, an airline payment amount shall not fail to be treated as 
a payment of wages by the commercial passenger airline carrier 
to the qualified airline employee in the taxable year of payment 
because such amount is excluded from the qualified airline 
employee’s gross income under subsection (a). 
(c) DEFINITIONS AND SPECIAL RULES.—For purposes of this sec-
tion— 
(1) AIRLINE PAYMENT AMOUNT.— 
(A) IN GENERAL.—The term ‘‘airline payment amount’’ 
means any payment of any money or other property which 
is payable by a commercial passenger airline carrier to 
a qualified airline employee— 
(i) under the approval of an order of a Federal 
bankruptcy court in a case filed after September 11, 
2001, and before January 1, 2007, and 
(ii) in respect of the qualified airline employee’s 
interest in a bankruptcy claim against the carrier, 
any note of the carrier (or amount paid in lieu of 
a note being issued), or any other fixed obligation 
of the carrier to pay a lump sum amount. 
The amount of such payment shall be determined without 
regard to any requirement to deduct and withhold tax
H. R. 658—144 
from such payment under sections 3102(a) of the Internal 
Revenue Code of 1986 and 3402(a) of such Code. 
(B) EXCEPTION.—An airline payment amount shall not 
include any amount payable on the basis of the carrier’s 
future earnings or profits. 
(2) QUALIFIED AIRLINE EMPLOYEE.—The term ‘‘qualified air-
line employee’’ means an employee or former employee of a 
commercial passenger airline carrier who was a participant 
in a defined benefit plan maintained by the carrier which— 
(A) is a plan described in section 401(a) of the Internal 
Revenue Code of 1986 which includes a trust exempt from 
tax under section 501(a) of such Code, and 
(B) was terminated or became subject to the restric-
tions contained in paragraphs (2) and (3) of section 402(b) 
of the Pension Protection Act of 2006. 
(3) TRADITIONAL IRA.—The term ‘‘traditional IRA’’ means 
an individual retirement plan (as defined in section 7701(a)(37) 
of the Internal Revenue Code of 1986) which is not a Roth 
IRA. 
(4) ROTH
IRA.—The term ‘‘Roth IRA’’ has the meaning 
given such term by section 408A(b) of such Code. 
(d) SURVIVING SPOUSE.—If a qualified airline employee died 
after receiving an airline payment amount, or if an airline payment 
amount was paid to the surviving spouse of a qualified airline 
employee in respect of the qualified airline employee, the surviving 
spouse of the qualified airline employee may take all actions per-
mitted under section 125 of the Worker, Retiree and Employer 
Recovery Act of 2008, or under this section, to the same extent 
that the qualified airline employee could have done had the qualified 
airline employee survived. 
(e) EFFECTIVE DATE.—This section shall apply to transfers made 
after the date of the enactment of this Act with respect to airline 
payment amounts paid before, on, or after such date. 
SEC. 1107. TERMINATION OF EXEMPTION FOR SMALL JET AIRCRAFT 
ON NONESTABLISHED LINES. 
(a) IN GENERAL.—The first sentence of section 4281 is amended 
by inserting ‘‘or when such aircraft is a jet aircraft’’ after ‘‘an 
established line’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable transportation provided after March 31, 2012. 
SEC. 1108. MODIFICATION OF CONTROL DEFINITION FOR PURPOSES 
OF SECTION 249. 
(a) IN GENERAL.—Section 249(a) is amended by striking ‘‘, 
or a corporation in control of, or controlled by,’’ and inserting 
‘‘, or a corporation in the same parent-subsidiary controlled group 
(within the meaning of section 1563(a)(1) as’’. 
(b) CONFORMING AMENDMENT.—Section 249(b) is amended— 
(1) by striking all that precedes ‘‘is the issue price’’ and 
inserting: 
‘‘(b) ADJUSTED ISSUE PRICE.—For purposes of subsection (a), 
the adjusted issue price’’, and 
(2) by striking paragraph (2). 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to repurchases after the date of the enactment of this 
Act.
H. R. 658—145 
TITLE XII—COMPLIANCE WITH STATU-
TORY PAY-AS-YOU-GO ACT OF 2010 
SEC. 1201. COMPLIANCE PROVISION. 
The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined 
by reference to the latest statement titled ‘‘Budgetary Effects of 
PAYGO Legislation’’ for this Act, jointly submitted for printing 
in the Congressional Record by the Chairmen of the House and 
Senate Budget Committees, provided that such statement has been 
submitted prior to the vote on passage in the House acting first 
on this conference report or amendment between the Houses. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.