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(ii) ensure that any commercial un-
manned aircraft system includes a detect, 
sense, and avoid capability; and 
(iii) develop standards and require-
ments for the operator or programmer of 
a commercial unmanned aircraft system, 
including standards and requirements for 
registration and licensing; 
(C) recommend how best to enhance the 
technologies and subsystems necessary to effect 
the safe and routine operations of commercial 
unmanned aircraft systems in the national air-
space system; and 
(D) recommend how a phased-in approach 
to the integration of commercial unmanned air-
craft systems into the national airspace system 
can best be achieved and a timeline upon which 
such a phase-in shall occur. 
(3) DEADLINE.—The plan to be developed 
under paragraph (1) shall provide for the safe inte-
gration of commercial unmanned aircraft systems 
into the national airspace system as soon as possible, 
but not later than September 30, 2012. 
(4) REPORT TO CONGRESS.—Not later than one 
year after the date of enactment of this Act, the 
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Secretary shall submit to Congress a copy of the 
plan developed under paragraph (1). 
(b) RULEMAKING.—Not later than 18 months after 
the date on which the integration plan is submitted to 
Congress under subsection (a)(4), the Administrator of 
the Federal Aviation Administration shall publish in the 
Federal Register a notice of proposed rulemaking to im-
plement the recommendations of the integration plan. 
(c) AUTHORIZATION.—There are authorized to be ap-
propriated such sums as may be necessary to carry out 
this section. 
SEC. 322. SPECIAL RULES FOR CERTAIN UNMANNED AIR-
CRAFT SYSTEMS. 
(a) IN
GENERAL.—Notwithstanding the require-
ments of sections 321 and 323, and not later than 6 
months after the date of enactment of this Act, the Sec-
retary shall determine if certain unmanned aircraft sys-
tems may operate safely in the national airspace system 
before completion of the plan and rulemaking required by 
section 321 or the guidance required by section 323. 
(b) ASSESSMENT
OF UNMANNED AIRCRAFT SYS-
TEMS.—In making the determination under subsection 
(a), the Secretary shall determine, at a minimum— 
(1) which types of unmanned aircraft systems, 
if any, as a result of their size, weight, speed, oper-
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HR 2881 PCS
ational capability, proximity to airports and popu-
lation areas, and operation within visual line-of-sight 
do not create a hazard to users of the national air-
space system or the public or pose a threat to na-
tional security; and 
(2) whether a certificate of authorization or an 
airworthiness certification under section 44704 of 
title 49, United States Code, is required for the op-
eration of unmanned aircraft systems identified 
under paragraph (1). 
(c) REQUIREMENTS FOR SAFE OPERATION.—If the 
Secretary determines under this section that certain un-
manned aircraft systems may operate safely in the na-
tional airspace system, the Secretary shall establish re-
quirements for the safe operation of such aircraft systems 
in the national airspace system. 
SEC. 323. PUBLIC UNMANNED AIRCRAFT SYSTEMS. 
Not later than 9 months after the date of enactment 
of this Act, the Secretary shall issue guidance regarding 
the operation of public unmanned aircraft systems to— 
(1) expedite the issuance of a certificate of au-
thorization process; 
(2) provide for a collaborative process with pub-
lic agencies to allow for an incremental expansion of 
access to the national airspace system as technology 
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matures and the necessary safety analysis and data 
become available and until standards are completed 
and technology issues are resolved; and 
(3) facilitate the capability of public agencies to 
develop and use test ranges, subject to operating re-
strictions required by the Federal Aviation Adminis-
tration, to test and operate unmanned aircraft sys-
tems. 
SEC. 324. DEFINITIONS. 
In this subtitle, the following definitions apply: 
(1) CERTIFICATE
OF
AUTHORIZATION.—The 
term ‘‘certificate of authorization’’ means a Federal 
Aviation Administration grant of approval for a spe-
cific flight operation. 
(2) DETECT, SENSE, AND AVOID CAPABILITY.— 
The term ‘‘detect, sense, and avoid capability’’ 
means the technical capability to perform separation 
assurance and collision avoidance, as defined by the 
Federal Aviation Administration. 
(3) PUBLIC UNMANNED AIRCRAFT SYSTEM.— 
The term ‘‘public unmanned aircraft system’’ means 
an unmanned aircraft system that meets the quali-
fications and conditions required for operation of a 
public aircraft, as defined by section 40102 of title 
49, United States Code. 
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(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
(5) TEST
RANGE.—The term ‘‘test range’’ 
means a defined geographic area where research and 
development are conducted. 
(6) UNMANNED
AIRCRAFT.—The term ‘‘un-
manned aircraft’’ means an aircraft that is operated 
without the possibility of direct human intervention 
from within or on the aircraft. 
(7) UNMANNED AIRCRAFT SYSTEM.—The term 
‘‘unmanned aircraft system’’ means an unmanned 
aircraft and associated elements (such as commu-
nication links and a ground control station) that are 
required to operate safely and efficiently in the na-
tional airspace system. 
TITLE IV—AIR SERVICE 
IMPROVEMENTS 
SEC. 401. MONTHLY AIR CARRIER REPORTS. 
(a) IN GENERAL.—Section 41708 is amended by 
adding at the end the following: 
‘‘(c) DIVERTED AND CANCELLED FLIGHTS.— 
‘‘(1) MONTHLY REPORTS.—The Secretary shall 
require an air carrier referred to in paragraph (2) 
to file with the Secretary a monthly report on each 
flight of the air carrier that is diverted from its 
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scheduled destination to another airport and each 
flight of the air carrier that departs the gate at the 
airport at which the flight originates but is cancelled 
before wheels-off time. 
‘‘(2) APPLICABILITY.—An air carrier that is re-
quired to file a monthly airline service quality per-
formance report under subsection (b) shall be sub-
ject to the requirement of paragraph (1). 
‘‘(3) CONTENTS.—A monthly report filed by an 
air carrier under paragraph (1) shall include, at a 
minimum, the following information: 
‘‘(A) For a diverted flight— 
‘‘(i) the flight number of the diverted 
flight; 
‘‘(ii) the scheduled destination of the 
flight; 
‘‘(iii) the date and time of the flight; 
‘‘(iv) the airport to which the flight 
was diverted; 
‘‘(v) wheels-on time at the diverted 
airport; 
‘‘(vi) the time, if any, passengers 
deplaned the aircraft at the diverted air-
port; and 
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‘‘(vii) if the flight arrives at the sched-
uled destination airport— 
‘‘(I) the gate-departure time at 
the diverted airport; 
‘‘(II) the wheels-off time at the 
diverted airport; 
‘‘(III) the wheels-on time at the 
scheduled arrival airport; and 
‘‘(IV) the gate arrival time at the 
scheduled arrival airport. 
‘‘(B) For flights cancelled after gate de-
parture— 
‘‘(i) the flight number of the cancelled 
flight; 
‘‘(ii) the scheduled origin and destina-
tion airports of the cancelled flight; 
‘‘(iii) the date and time of the can-
celled flight; 
‘‘(iv) the gate-departure time of the 
cancelled flight; and 
‘‘(v) the time the aircraft returned to 
the gate. 
‘‘(4) PUBLICATION.—The Secretary shall com-
pile the information provided in the monthly reports 
filed pursuant to paragraph (1) in a single monthly 
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report and publish such report on the Web site of 
the Department of Transportation.’’. 
(b) EFFECTIVE DATE.—The Secretary of Transpor-
tation shall require monthly reports pursuant to the 
amendment made by subsection (a) beginning not later 
than 90 days after the date of enactment of this Act. 
SEC. 402. FLIGHT OPERATIONS AT REAGAN NATIONAL AIR-
PORT. 
(a) BEYOND
PERIMETER
EXEMPTIONS.—Section 
41718(a) is amended by striking ‘‘24’’ and inserting ‘‘34’’. 
(b) LIMITATIONS.—Section 41718(c)(2) is amended 
by striking ‘‘3 operations’’ and inserting ‘‘5 operations’’. 
(c) ALLOCATION OF BEYOND-PERIMETER EXEMP-
TIONS.—Section 41718(c) is amended— 
(1) by redesignating paragraphs (3) and (4) as 
(4) and (5), respectively; and 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) SLOTS.—The Administrator of the Federal 
Aviation Administration shall reduce the hourly air 
carrier slot quota for Ronald Reagan Washington 
National Airport in section 93.123(a) of title 14, 
Code of Federal Regulations, by a total of 10 slots 
that are available for allocation. Such reductions 
shall be taken in the 6:00 a.m., 10:00 p.m., or 11:00 
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HR 2881 PCS
p.m. hours, as determined by the Administrator, in 
order to grant exemptions under subsection (a).’’. 
(d) SCHEDULING
PRIORITY.—Section 41718 is 
amended— 
(1) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(2) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) SCHEDULING PRIORITY.—Operations conducted 
by new entrant air carriers and limited incumbent air car-
riers shall be afforded a scheduling priority over oper-
ations conducted by other air carriers granted exemptions 
pursuant to this section, with the highest scheduling pri-
ority to be afforded to beyond-perimeter operations con-
ducted by new entrant air carriers and limited incumbent 
air carriers.’’. 
SEC. 403. EAS CONTRACT GUIDELINES. 
Section 41737(a)(1) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (B); 
(2) in subparagraph (C) by striking ‘‘provided.’’ 
and inserting ‘‘provided;’’; and 
(3) by adding at the end the following: 
‘‘(D) include provisions under which the Sec-
retary may encourage an air carrier to improve air 
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service for which compensation is being paid under 
this subchapter by incorporating financial incentives 
in an essential air service contract based on specified 
performance goals; and 
‘‘(E) include provisions under which the Sec-
retary may execute a long-term essential air service 
contract to encourage an air carrier to provide air 
service to an eligible place if it would be in the pub-
lic interest to do so.’’. 
SEC. 404. ESSENTIAL AIR SERVICE REFORM. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 
41742(a)(2) is amended by striking ‘‘$77,000,000’’ and 
inserting ‘‘$83,000,000’’. 
(b) DISTRIBUTION OF EXCESS FUNDS.— 
(1) IN GENERAL.—Section 41742(a) is amend-
ed by adding at the end the following: 
‘‘(4) DISTRIBUTION
OF
EXCESS
FUNDS.—Of 
the funds, if any, credited to the account established 
under section 45303 in a fiscal year that exceed the 
$50,000,000 made available for such fiscal year 
under paragraph (1)— 
‘‘(A) one-half shall be made available im-
mediately for obligation and expenditure to 
carry out section 41743; and 
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‘‘(B) one-half shall be made available im-
mediately for obligation and expenditure to 
carry out subsection (b).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
41742(b) is amended— 
(A) in the first sentence by striking ‘‘mon-
eys credited’’ and all that follows before ‘‘shall 
be used’’ and inserting ‘‘amounts made avail-
able under subsection (a)(4)(B)’’; and 
(B) in the second sentence by striking 
‘‘any amounts from those fees’’ and inserting 
‘‘any of such amounts’’. 
SEC. 405. SMALL COMMUNITY AIR SERVICE. 
(a) PRIORITIES.—Section 41743(c)(5) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (D); 
(2) in subparagraph (E) by striking ‘‘fashion.’’ 
and inserting ‘‘fashion; and’’; and 
(3) by adding at the end the following: 
‘‘(F) multiple communities cooperate to 
submit a regional or multistate application to 
improve air service.’’. 
(b) 
EXTENSION
OF
AUTHORIZATION.—Section 
41743(e)(2) is amended by striking ‘‘2008’’ and inserting 
‘‘2011’’. 
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SEC. 406. AIR PASSENGER SERVICE IMPROVEMENTS. 
(a) IN GENERAL.—Subtitle VII is amended by insert-
ing after chapter 421 the following: 
‘‘CHAPTER 423—AIR PASSENGER SERVICE 
IMPROVEMENTS 
‘‘Sec. 
‘‘42301. Emergency contingency plans. 
‘‘42302. Consumer complaints. 
‘‘42303. Use of insecticides in passenger aircraft. 
‘‘§ 42301. Emergency contingency plans 
‘‘(a) SUBMISSION OF AIR CARRIER AND AIRPORT 
PLANS.—Not later than 90 days after the date of enact-
ment of this section, each air carrier providing covered air 
transportation at a large hub airport or medium hub air-
port and each operator of a large hub airport or medium 
hub airport shall submit to the Secretary of Transpor-
tation for review and approval an emergency contingency 
plan in accordance with the requirements of this section. 
‘‘(b) COVERED AIR TRANSPORTATION DEFINED.—In 
this section, the term ‘covered air transportation’ means 
scheduled passenger air transportation provided by an air 
carrier using aircraft with more than 60 seats. 
‘‘(c) AIR CARRIER PLANS.— 
‘‘(1) PLANS
FOR
INDIVIDUAL
AIRPORTS.—An 
air carrier shall submit an emergency contingency 
plan under subsection (a) for— 
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‘‘(A) each large hub airport and medium 
hub airport at which the carrier provides cov-
ered air transportation; and 
‘‘(B) each large hub airport and medium 
hub airport at which the carrier has flights for 
which it has primary responsibility for inventory 
control. 
‘‘(2) CONTENTS.—An emergency contingency 
plan submitted by an air carrier for an airport under 
subsection (a) shall contain a description of how the 
air carrier will— 
‘‘(A) provide food, water that meets the 
standards of the Safe Drinking Water Act (42 
U.S.C. 300f et seq.), restroom facilities, cabin 
ventilation, and access to medical treatment for 
passengers onboard an aircraft at the airport 
that is on the ground for an extended period of 
time without access to the terminal; 
‘‘(B) allow passengers to deplane following 
excessive delays; and 
‘‘(C) share facilities and make gates avail-
able at the airport in an emergency. 
‘‘(d) AIRPORT PLANS.—An emergency contingency 
plan submitted by an airport operator under subsection 
(a) shall contain a description of how the airport operator, 
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to the maximum extent practicable, will provide for the 
deplanement of passengers following excessive delays and 
will provide for the sharing of facilities and make gates 
available at the airport in an emergency. 
‘‘(e) UPDATES.— 
‘‘(1) AIR CARRIERS.—An air carrier shall up-
date the emergency contingency plan submitted by 
the air carrier under subsection (a) every 3 years 
and submit the update to the Secretary for review 
and approval. 
‘‘(2) AIRPORTS.—An airport operator shall up-
date the emergency contingency plan submitted by 
the airport operator under subsection (a) every 5 
years and submit the update to the Secretary for re-
view and approval. 
‘‘(f) APPROVAL.— 
‘‘(1) IN GENERAL.—Not later than 9 months 
after the date of enactment of this section, the Sec-
retary shall review and approve or require modifica-
tions to emergency contingency plans submitted 
under subsection (a) and updates submitted under 
subsection (e) to ensure that the plans and updates 
will effectively address emergencies and provide for 
the health and safety of passengers. 
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‘‘(2) CIVIL PENALTIES.—The Secretary may as-
sess a civil penalty under section 46301 against an 
air carrier or airport that does not adhere to an 
emergency contingency plan approved under this 
subsection. 
‘‘(g) MINIMUM STANDARDS.—The Secretary may es-
tablish, as necessary or desirable, minimum standards for 
elements in an emergency contingency plan required to be 
submitted under this section. 
‘‘(h) PUBLIC ACCESS.—An air carrier or airport re-
quired to submit emergency contingency plans under this 
section shall ensure public access to such plan after its 
approval under this section on the Internet Web site of 
the carrier or airport or by such other means as deter-
mined by the Secretary. 
‘‘§ 42302. Consumer complaints 
‘‘(a) CONSUMER COMPLAINTS HOTLINE TELEPHONE 
NUMBER.—The Secretary of Transportation shall estab-
lish a consumer complaints hotline telephone number for 
the use of passengers in air transportation. 
‘‘(b) PUBLIC NOTICE.—The Secretary shall notify 
the public of the telephone number established under sub-
section (a). 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
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necessary to carry out this section. Such sums shall re-
main available until expended. 
‘‘§ 42303. Use of insecticides in passenger aircraft 
‘‘No air carrier, foreign air carrier, or ticket agent 
may sell in the United States a ticket for air transpor-
tation for a flight on which a insecticide has been applied 
in the aircraft within the last 60 days or on which an in-
secticide is planned to be used in the aircraft while pas-
sengers are on board the aircraft unless the air carrier, 
foreign air carrier, or ticket agent selling the ticket first 
informs the person purchasing the ticket of the applica-
tion, application, or planned use of the insecticide, includ-
ing the name of the insecticide.’’. 
(b) CLERICAL AMENDMENT.—The analysis for sub-
title VII is amended by inserting after the item relating 
to chapter 421 the following: 
‘‘423. Air Passenger Service Improvements ............................................. 42301’’. 
(c) PENALTIES.—Section 46301 is amended in sub-
sections (a)(1)(A) and (c)(1)(A) by inserting ‘‘chapter 
423,’’ after ‘‘chapter 421,’’. 
(d) APPLICABILITY OF REQUIREMENTS.—Except as 
otherwise specifically provided, the requirements of chap-
ter 423 of title 49, United States Code, as added by this 
section, shall begin to apply 60 days after the date of en-
actment of this Act. 
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SEC. 407. CONTENTS OF COMPETITION PLANS. 
Section 47106(f)(2) is amended— 
(1) by striking ‘‘patterns of air service,’’; 
(2) by inserting ‘‘and’’ before ‘‘whether’’; and 
(3) by striking ‘‘ , and airfare levels’’ and all 
that follows before the period. 
SEC. 408. EXTENSION OF COMPETITIVE ACCESS REPORTS. 
Section 47107(s)(3) is amended by striking ‘‘2008’’ 
and inserting ‘‘2012’’. 
SEC. 409. CONTRACT TOWER PROGRAM. 
(a) 
COST-BENEFIT
REQUIREMENT.—Section 
47124(b) is amended— 
(1) by striking ‘‘(1) The Secretary’’ and insert-
ing the following: 
‘‘(1) CONTRACT TOWER PROGRAM.— 
‘‘(A) CONTINUATION
AND
EXTENSION.— 
The Secretary’’; 
(2) by adding at the end of paragraph (1) the 
following: 
‘‘(B) SPECIAL RULE.—If the Secretary de-
termines that a tower already operating under 
the program continued under this paragraph 
has a benefit to cost ratio of less than 1.0, the 
airport sponsor or State or local government 
having jurisdiction over the airport shall not be 
required to pay the portion of the costs that ex-
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ceeds the benefit for a period of 18 months 
after such determination is made. 
‘‘(C) USE OF EXCESS FUNDS.—If the Sec-
retary finds that all or part of an amount made 
available to carry out the program continued 
under this paragraph is not required during a 
fiscal year, the Secretary may use, during such 
fiscal year, the amount not so required to carry 
out the program established under paragraph 
(3).’’; and 
(3) by striking ‘‘(2) The Secretary’’ and insert-
ing the following: 
‘‘(2) GENERAL AUTHORITY.—The Secretary’’. 
(b) CONTRACT AIR TRAFFIC CONTROL TOWER COST- 
SHARING PROGRAM.— 
(1) 
FUNDING.—Section 
47124(b)(3)(E) 
is 
amended— 
(A) by striking ‘‘and’’; and 
(B) by inserting ‘‘, $8,500,000 for fiscal 
year 2008, $9,000,000 for fiscal year 2009, 
$9,500,000 
for 
fiscal 
year 
2010, 
and 
$10,000,000 for fiscal year 2011’’ after 
‘‘2007’’. 
(2) 
USE
OF
EXCESS
FUNDS.—Section 
47124(b)(3) is amended— 
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(A) by redesignating subparagraph (E) (as 
amended by paragraph (1) of this subsection) 
as subparagraph (F); and 
(B) by inserting after subparagraph (D) 
the following: 
‘‘(E) USE OF EXCESS FUNDS.—If the Sec-
retary finds that all or part of an amount made 
available under this subparagraph is not re-
quired during a fiscal year to carry out this 
paragraph, the Secretary may use, during such 
fiscal year, the amount not so required to carry 
out the program continued under paragraph 
(1).’’. 
(c) FEDERAL SHARE.—Section 47124(b)(4)(C) is 
amended 
by 
striking 
‘‘$1,500,000’’ 
and 
inserting 
‘‘$2,000,000’’. 
(d) SAFETY AUDITS.—Section 47124 is amended by 
adding at the end the following: 
‘‘(c) SAFETY AUDITS.—The Secretary shall establish 
uniform standards and requirements for safety assess-
ments of air traffic control towers that receive funding 
under this section.’’. 
SEC. 410. AIRFARES FOR MEMBERS OF THE ARMED 
FORCES. 
(a) FINDINGS.—Congress finds that— 
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(1) the Armed Forces is comprised of approxi-
mately 1,400,000 members who are stationed on ac-
tive duty at more than 6,000 military bases in 146 
different countries; 
(2) the United States is indebted to the mem-
bers of the Armed Forces, many of whom are in 
grave danger due to their engagement in, or expo-
sure to, combat; 
(3) military service, especially in the current 
war against terrorism, often requires members of the 
Armed Forces to be separated from their families on 
short notice, for long periods of time, and under 
very stressful conditions; 
(4) the unique demands of military service often 
preclude members of the Armed Forces from pur-
chasing discounted advance airline tickets in order 
to visit their loved ones at home; and 
(5) it is the patriotic duty of the people of the 
United States to support the members of the Armed 
Forces who are defending the Nation’s interests 
around the world at great personal sacrifice. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that each United States air carrier should— 
(1) establish for all members of the Armed 
Forces on active duty reduced air fares that are 
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comparable to the lowest airfare for ticketed flights; 
and 
(2) offer flexible terms that allow members of 
the Armed Forces on active duty to purchase, mod-
ify, or cancel tickets without time restrictions, fees, 
and penalties. 
SEC. 411. MEDICAL OXYGEN AND PORTABLE RESPIRATORY 
ASSISTIVE DEVICES. 
Not later than December 31, 2007, the Secretary of 
Transportation shall issue a final rule regarding the car-
riage and use of passenger-owned portable electronic res-
piratory assistive devices and carrier-supplied medical oxy-
gen devices aboard commercial flights to improve accom-
modations in air travel for passengers with respiratory dis-
abilities. 
SEC. 412. REPEAL OF ESSENTIAL AIR SERVICE LOCAL PAR-
TICIPATION PROGRAM. 
(a) REPEAL.—Section 41747, and the item relating 
to such section in the analysis for chapter 417, are re-
pealed. 
(b) APPLICABILITY.—Title 49, United States Code, 
shall be applied as if section 41747 of such title had not 
been enacted. 
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HR 2881 PCS
SEC. 413. GAO STUDY OF ESSENTIAL AIR SERVICE SUBSIDY 
CAP. 
(a) IN GENERAL.—The Comptroller General shall ex-
amine how the $200 per passenger subsidy cap, initially 
established by Public Law 103–122 (107 Stat. 1198; 
1201) and made permanent by section 332 of Public Law 
106–69 (113 Stat. 1022) to restrict eligibility for funding 
under the essential air service program, has impacted that 
program and the access of small communities to air trans-
portation. 
(b) STUDY.—The study shall include an analysis of 
the following: 
(1) The communities that have lost eligibility 
for subsidized air service under the essential air 
service program due to the $200 per passenger sub-
sidy cap and the impact, if any, such loss of subsidy 
has had on the access of such communities to air 
transportation. 
(2) The likely effect on the essential air service 
program if the $200 per passenger subsidy cap is in-
dexed for inflation beginning in 2009. 
(3) Whether the $200 per passenger subsidy 
cap has disproportionately impacted communities in 
certain geographic areas. 
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HR 2881 PCS
(4) Alternative methods of measuring the sub-
sidy rate, including the subsidy per passenger per 
mile. 
(c) REPORT
TO CONGRESS.—Not later than 18 
months after the date of enactment of this Act, the Comp-
troller General shall submit to the Committee on Trans-
portation and Infrastructure of the House of Representa-
tives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of 
the study conducted under this section. 
SEC. 414. NOTICE TO COMMUNITIES PRIOR TO TERMI-
NATION OF ELIGIBILITY FOR SUBSIDIZED ES-
SENTIAL AIR SERVICE. 
Section 41733 is amended by adding at the end the 
following: 
‘‘(f) NOTICE TO COMMUNITIES PRIOR TO TERMI-
NATION OF ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Secretary shall notify 
each community receiving basic essential air service 
for which compensation is being paid under this sub-
chapter not later than 45 days before issuing any 
final decision to end the payment of such compensa-
tion due to a determination by the Secretary that 
providing such service requires a rate of subsidy per 
passenger in excess of the maximum amount speci-
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HR 2881 PCS
fied in section 332 of Public Law 106–69 (113 Stat. 
1022). 
‘‘(2) PROCEDURES TO AVOID TERMINATION.— 
The Secretary shall establish, by order, procedures 
by which each community notified of an impending 
loss of subsidy under paragraph (1) may work di-
rectly with an air carrier to ensure that the air car-
rier is able to submit a proposal to the Secretary to 
provide essential air service to such community for 
an amount of compensation that would not exceed 
the subsidy cap established by section 332 of Public 
Law 106–69. 
‘‘(3) ASSISTANCE
PROVIDED.—The Secretary 
shall provide, by order, to each community notified 
under paragraph (1) information regarding— 
‘‘(A) the procedures established pursuant 
to paragraph (2); and 
‘‘(B) the maximum amount of compensa-
tion that could be provided under this sub-
chapter to an air carrier serving such commu-
nity that would comply with the subsidy cap es-
tablished by section 332 of Public Law 106– 
69.’’. 
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HR 2881 PCS
SEC. 415. RESTORATION OF ELIGIBILITY TO A PLACE DE-
TERMINED BY THE SECRETARY TO BE INELI-
GIBLE 
FOR 
SUBSIDIZED 
ESSENTIAL 
AIR 
SERVICE. 
Section 41733 (as amended by section 414 of this 
Act) is further amended by adding at the end the fol-
lowing: 
‘‘(g) PROPOSALS OF STATE AND LOCAL GOVERN-
MENTS TO RESTORE ELIGIBILITY.— 
‘‘(1) IN GENERAL.—If the Secretary ends pay-
ment of compensation to an air carrier for providing 
basic essential air service to an eligible place because 
the Secretary has determined that providing such 
service requires a rate of subsidy per passenger in 
excess of the maximum amount specified in section 
332 of Public Law 106–69 (113 Stat. 1022), a 
State or local government may submit to the Sec-
retary a proposal for restoring compensation for 
such service. Such proposal shall be a joint proposal 
of the State or local government and an air carrier. 
‘‘(2) DETERMINATION
BY
SECRETARY.—If a 
State or local government submits to the Secretary 
a proposal under paragraph (1) with respect to an 
eligible place, and the Secretary determines that— 
‘‘(A) the rate of subsidy per passenger 
under the proposal does not exceed the max-
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HR 2881 PCS
imum amount specified in section 332 of Public 
Law 106–69; and 
‘‘(B) the proposal is consistent with the 
legal and regulatory requirements of the essen-
tial air service program, 
the Secretary shall issue an order restoring the eligi-
bility of the otherwise eligible place to receive basic 
essential air service by an air carrier for compensa-
tion under subsection (c).’’. 
SEC. 416. OFFICE OF RURAL AVIATION. 
(a) IN GENERAL.—Subchapter II of chapter 417 is 
amended by adding at the end the following: 
‘‘§ 41749. Office of Rural Aviation 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish within the Department of Transpor-
tation an office to be known as the ‘Office of Rural Avia-
tion’ (in this section referred to as the ‘Office’). 
‘‘(b) FUNCTIONS.—The Office shall— 
‘‘(1) monitor the status of air service to small 
communities; 
‘‘(2) develop proposals to improve air service to 
small communities; and 
‘‘(3) carry out such other functions as the Sec-
retary considers appropriate.’’. 
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HR 2881 PCS
(b) CLERICAL AMENDMENT.—The analysis for sub-
chapter II of chapter 417 is amended by adding at the 
end the following: 
‘‘41749. Office of Rural Aviation.’’. 
SEC. 417. ADJUSTMENTS TO COMPENSATION FOR SIGNIFI-
CANTLY INCREASED COSTS. 
(a) ADJUSTMENTS TO ACCOUNT FOR SIGNIFICANTLY 
INCREASED
NONFUEL
COSTS.—Section 41737(e) is 
amended— 
(1) in the subsection heading by inserting 
‘‘NONFUEL’’ before ‘‘COSTS’’; and 
(2) in paragraph (1) by inserting ‘‘other than 
fuel costs’’ before ‘‘in providing’’. 
(b) ADJUSTMENTS TO ACCOUNT FOR SIGNIFICANTLY 
INCREASED AVIATION FUEL COSTS.—Section 41737 is 
amended by adding at the end the following: 
‘‘(f) ADJUSTMENTS
TO
ACCOUNT
FOR
SIGNIFI-
CANTLY INCREASED AVIATION FUEL COSTS.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
that air carriers are experiencing significantly in-
creased aviation fuel costs in providing air service or 
air transportation for which compensation is being 
paid under this subchapter, the Secretary, subject to 
the availability of funds, shall increase the rates of 
compensation payable to air carriers under this sub-
chapter without regard to any agreement or require-
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HR 2881 PCS
ment relating to the renegotiation of contracts or 
any notice requirement under section 41734. 
‘‘(2) READJUSTMENT IF COSTS SUBSEQUENTLY 
DECLINE.—If an adjustment is made under para-
graph (1) with respect to the rates of compensation 
payable to air carriers, and the Secretary subse-
quently determines that there is a significant de-
crease in aviation fuel costs, the Secretary shall re-
duce the adjustment previously made under para-
graph (1) without regard to any agreement or re-
quirement relating to the renegotiation of contracts 
or any notice requirement under section 41734. 
‘‘(3) DEFINITIONS.—In this subsection, the fol-
lowing definitions apply: 
‘‘(A) AVIATION FUEL.—The term ‘aviation 
fuel’ means fuel used by an air carrier in air-
craft providing air service or air transportation 
for which compensation is being paid under this 
subchapter. 
‘‘(B) SIGNIFICANT DECREASE IN AVIATION 
FUEL COSTS.—The term ‘significant decrease in 
aviation fuel costs’ means a decrease of 30 per-
cent or more in the price per gallon of aviation 
fuel over a 6-month period, as determined by 
the Secretary, based on fuel price information 
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HR 2881 PCS
derived from a commodities exchange or ex-
changes. 
‘‘(C) SIGNIFICANTLY INCREASED AVIATION 
FUEL COSTS.—The term ‘significantly increased 
aviation fuel costs’ means an increase of 30 
percent or more in the price per gallon of avia-
tion fuel over a 6-month period, as determined 
by the Secretary, based on fuel price informa-
tion derived from a commodities exchange or 
exchanges.’’. 
SEC. 418. REVIEW OF AIR CARRIER FLIGHT DELAYS, CAN-
CELLATIONS, AND ASSOCIATED CAUSES. 
(a) REVIEW.—The Inspector General of the Depart-
ment of Transportation shall conduct a review regarding 
air carrier flight delays, cancellations, and associated 
causes to update its 2000 report numbered CR–2000–112 
and entitled ‘‘Audit of Air Carrier Flight Delays and Can-
cellations’’. 
(b) ASSESSMENTS.—In conducting the review under 
subsection (a), the Inspector General shall assess— 
(1) the need for an update on delay and can-
cellation statistics, such as number of chronically de-
layed flights and taxi-in and taxi-out times; 
(2) air carriers’ scheduling practices; 
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HR 2881 PCS
(3) the need for a re-examination of capacity 
benchmarks at the Nation’s busiest airports; and 
(4) the impact of flight delays and cancellations 
on air travelers, including recommendations for pro-
grams that could be implemented to address the im-
pact of flight delays on air travelers. 
(c) REPORT.—Not later than one year after the date 
of enactment of this Act, the Inspector General shall sub-
mit to the Committee on Transportation and Infrastruc-
ture of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate 
a report on the results of the review conducted under this 
section, including the assessments described in subsection 
(b). 
SEC. 419. EUROPEAN UNION RULES FOR PASSENGER 
RIGHTS. 
(a) IN GENERAL.—The Comptroller General shall 
conduct a study to evaluate and compare the regulations 
of the European Union and the United States on com-
pensation and other consideration offered to passengers 
who are denied boarding or whose flights are cancelled or 
delayed. 
(b) SPECIFIC STUDY REQUIREMENTS.—The study 
shall include an evaluation and comparison of the regula-
tions based on costs to the air carriers, preferences of pas-
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HR 2881 PCS
sengers for compensation or other consideration, and 
forms of compensation. In conducting the study, the 
Comptroller General shall also take into account the dif-
ferences in structure and size of the aviation systems of 
the European Union and the United States. 
(c) REPORT.—Not later than one year after the date 
of enactment of this Act, the Comptroller General shall 
submit a report to Congress on the results of the study. 
SEC. 420. ESTABLISHMENT OF ADVISORY COMMITTEE FOR 
AVIATION CONSUMER PROTECTION. 
(a) IN GENERAL.—The Secretary of Transportation 
shall establish an advisory committee for aviation con-
sumer protection (in this section referred to as the ‘‘advi-
sory committee’’) to advise the Secretary in carrying out 
air passenger service improvements, including those re-
quired by chapter 423 of title 49, United States Code. 
(b) MEMBERSHIP.—The Secretary shall appoint 8 
members to the advisory committee as follows: 
(1) Two representatives of air carriers required 
to submit emergency contingency plans pursuant to 
section 42301 of title 49, United States Code. 
(2) Two representatives of the airport operators 
required to submit emergency contingency plans pur-
suant to section 42301 of such title. 
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HR 2881 PCS
(3) Two representatives of State and local gov-
ernments who have expertise in aviation consumer 
protection matters. 
(4) Two representatives of nonprofit public in-
terest groups who have expertise in aviation con-
sumer protection matters. 
(c) VACANCIES.—A vacancy in the advisory com-
mittee shall be filled in the manner in which the original 
appointment was made. 
(d) TRAVEL EXPENSES.—Members of the advisory 
committee shall serve without pay but shall receive travel 
expenses, including per diem in lieu of subsistence, in ac-
cordance with subchapter I of chapter 57 of title 5, United 
States Code. 
(e) CHAIRPERSON.—The Secretary shall designate, 
from among the individuals appointed under subsection 
(b), an individual to serve as chairperson of the advisory 
committee. 
(f) DUTIES.—The duties of the advisory committee 
shall include the following: 
(1) Evaluating existing aviation consumer pro-
tection programs and providing recommendations for 
the improvement of such programs, if needed. 
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HR 2881 PCS
(2) Providing recommendations to establish ad-
ditional aviation consumer protection programs, if 
needed. 
(g) REPORT.—Not later than February 1 of each of 
the first 2 calendar years beginning after the date of en-
actment of this Act, the Secretary shall transmit to Con-
gress a report containing— 
(1) each recommendation made by the advisory 
committee during the preceding calendar year; and 
(2) an explanation of how the Secretary has im-
plemented each recommendation and, for each rec-
ommendation not implemented, the Secretary’s rea-
son for not implementing the recommendation. 
SEC. 421. DENIED BOARDING COMPENSATION. 
(a) IN GENERAL.—Not later than one year after the 
date of enactment of this Act, the Secretary of Transpor-
tation shall issue a final regulation to modify section 250 
of title 14, Code of Federal Regulations, regarding denied 
boarding compensation, to appropriately adjust the 
amount of such compensation for an aircraft with 30 or 
more seats. 
(b) EVALUATION.—Not later than 2 years after the 
date of issuance of the final regulation under this section 
and every 2 years thereafter, the Secretary shall evaluate 
the amount provided for denied boarding compensation 
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HR 2881 PCS
and issue a regulation to adjust such compensation as nec-
essary. 
SEC. 422. SCHEDULE REDUCTION. 
(a) IN GENERAL.—If the Administrator of the Fed-
eral Aviation Administration determines that: (1) the air-
craft operations of air carriers during any hour at an air-
port exceeds the hourly maximum departure and arrival 
rate established by the Administrator for such operations; 
and (2) the operations in excess of the maximum depar-
ture and arrival rate for such hour at such airport are 
likely to have a significant adverse effect on the national 
or regional airspace system, the Administrator shall con-
vene a conference of such carriers to reduce pursuant to 
section 41722, on a voluntary basis, the number of such 
operations to less than such maximum departure and ar-
rival rate. 
(b) NO AGREEMENT.—If the air carriers partici-
pating in a conference with respect to an airport under 
subsection (a) are not able to agree to a reduction in the 
number of flights to and from the airport to less than the 
maximum departure and arrival rate, the Administrator 
shall take such action as is necessary to ensure such re-
duction is implemented. 
(c) QUARTERLY REPORTS.—Beginning 3 months 
after the date of enactment of this Act and every 3 months 
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HR 2881 PCS
thereafter, the Administrator shall submit to Congress a 
report regarding scheduling at the 35 airports that have 
the greatest number of passenger enplanements, including 
each occurrence in which hourly scheduled aircraft oper-
ations of air carriers at such an airport exceed the hourly 
maximum departure and arrival rate at any such airport. 
SEC. 423. EXPANSION OF DOT AIRLINE CONSUMER COM-
PLAINT INVESTIGATIONS. 
(a) IN GENERAL.—Subject to the availability of ap-
propriations, the Secretary of Transportation shall inves-
tigate consumer complaints regarding— 
(1) flight cancellations; 
(2) compliance with Federal regulations con-
cerning overbooking seats flights; 
(3) lost, damaged, or delayed baggage, and dif-
ficulties with related airline claims procedures; 
(4) problems in obtaining refunds for unused or 
lost tickets or fare adjustments; 
(5) incorrect or incomplete information about 
fares, discount fare conditions and availability, over-
charges, and fare increases; 
(6) the rights of passengers who hold frequent 
flier miles or equivalent redeemable awards earned 
through customer-loyalty programs; and 
(7) deceptive or misleading advertising. 
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HR 2881 PCS
(b) BUDGET NEEDS REPORT.—The Secretary shall 
provide, as an annex to its annual budget request, an esti-
mate of resources which would have been sufficient to in-
vestigate all such claims the Department of Transpor-
tation received in the previous fiscal year. The annex shall 
be transmitted to Congress when the President submits 
the budget of the United States to the Congress under 
section 1105 of title 31, United States Code. 
TITLE 
V—ENVIRONMENTAL 
STEWARDSHIP AND STREAM-
LINING 
SEC. 501. AMENDMENTS TO AIR TOUR MANAGEMENT PRO-
GRAM. 
Section 40128 is amended— 
(1) in subsection (a)(1)(C) by inserting ‘‘or vol-
untary agreement under subsection (b)(7)’’ before 
‘‘for the park’’; 
(2) in subsection (a) by adding at the end the 
following: 
‘‘(5) EXEMPTION.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), a national park that has 50 or fewer 
commercial air tour flights a year shall be ex-
empt from the requirements of this section, ex-
cept as provided in subparagraph (B). 
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HR 2881 PCS
‘‘(B) WITHDRAWAL
OF
EXEMPTION.—If 
the Director determines that an air tour man-
agement plan or voluntary agreement is nec-
essary to protect park resources and values or 
park visitor use and enjoyment, the Director 
shall withdraw the exemption of a park under 
subparagraph (A). 
‘‘(C) LIST OF PARKS.—The Director shall 
inform the Administrator, in writing, of each 
determination under subparagraph (B). The Di-
rector and Administrator shall publish an an-
nual list of national parks that are covered by 
the exemption provided by this paragraph. 
‘‘(D) ANNUAL REPORT.—A commercial air 
tour operator conducting commercial air tours 
in a national park that is exempt from the re-
quirements of this section shall submit to the 
Administrator and the Director an annual re-
port regarding the number of commercial air 
tour flights it conducts each year in such 
park.’’; 
(3) in subsection (b) by adding at the end the 
following: 
‘‘(7) VOLUNTARY AGREEMENTS.— 
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HR 2881 PCS
‘‘(A) IN GENERAL.—As an alternative to 
an air tour management plan, the Director and 
the Administrator may enter into a voluntary 
agreement with a commercial air tour operator 
(including a new entrant applicant and an oper-
ator that has interim operating authority) that 
has applied to conduct air tour operations over 
a national park to manage commercial air tour 
operations over such national park. 
‘‘(B) PARK
PROTECTION.—A voluntary 
agreement under this paragraph with respect to 
commercial air tour operations over a national 
park shall address the management issues nec-
essary to protect the resources of such park and 
visitor use of such park without compromising 
aviation safety or the air traffic control system 
and may— 
‘‘(i) include provisions such as those 
described in subparagraphs (B) through 
(E) of paragraph (3); 
‘‘(ii) include provisions to ensure the 
stability of, and compliance with, the vol-
untary agreement; and 
‘‘(iii) provide for fees for such oper-
ations. 
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‘‘(C) PUBLIC.—The Director and the Ad-
ministrator shall provide an opportunity for 
public review of a proposed voluntary agree-
ment under this paragraph and shall consult 
with any Indian tribe whose tribal lands are, or 
may be, flown over by a commercial air tour op-
erator under a voluntary agreement under this 
paragraph. After such opportunity for public re-
view and consultation, the voluntary agreement 
may be implemented without further adminis-
trative or environmental process beyond that 
described in this subsection. 
‘‘(D) TERMINATION.—A voluntary agree-
ment under this paragraph may be terminated 
at any time at the discretion of the Director or 
the Administrator if the Director determines 
that the agreement is not adequately protecting 
park resources or visitor experiences or the Ad-
ministrator determines that the agreement is 
adversely affecting aviation safety or the na-
tional aviation system. If a voluntary agreement 
for a national park is terminated, the operators 
shall conform to the requirements for interim 
operating authority under subsection (c) until 
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an air tour management plan for the park is in 
effect.’’; 
(4) in subsection (c) by striking paragraph 
(2)(I) and inserting the following: 
‘‘(I) may allow for modifications of the in-
terim operating authority without further envi-
ronmental review beyond that described in this 
section if— 
‘‘(i) adequate information regarding 
the operator’s existing and proposed oper-
ations under the interim operating author-
ity is provided to the Administrator and 
the Director; 
‘‘(ii) the Administrator determines 
that there would be no adverse impact on 
aviation safety or the air traffic control 
system; and 
‘‘(iii) the Director agrees with the 
modification, based on the Director’s pro-
fessional expertise regarding the protection 
of the park resources and values and vis-
itor use and enjoyment.’’; 
(5) in subsection (c)(3)(A) by striking ‘‘if the 
Administrator determines’’ and all that follows 
through the period at the end and inserting ‘‘without 
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further environmental process beyond that described 
in this paragraph if— 
‘‘(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 or the air traffic control sys-
tem; and 
‘‘(iii) the Director agrees, based on 
the Director’s professional expertise re-
garding the protection of park resources 
and values and visitor use and enjoy-
ment.’’; and 
(6) by redesignating subsections (d), (e), and 
(f) as subsections (e), (f), and (g), respectively; and 
(7) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) COMMERCIAL
AIR
TOUR
OPERATOR
RE-
PORTS.— 
‘‘(1) REPORT.—Each commercial air tour oper-
ator providing a commercial air tour over a national 
park under interim operating authority granted 
under subsection (c) or in accordance with an air 
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tour management plan under subsection (b) shall 
submit a report to the Administrator and Director 
regarding the number of its commercial air tour op-
erations over each national park and such other in-
formation as the Administrator and Director may 
request in order to facilitate administering the provi-
sions of this section. 
‘‘(2) REPORT SUBMISSION.—Not later than 3 
months after the date of enactment of the FAA Re-
authorization Act of 2007, the Administrator and 
Director shall jointly issue an initial request for re-
ports under this subsection. The reports shall be 
submitted to the Administrator and Director on a 
frequency and in a format prescribed by the Admin-
istrator and Director.’’. 
SEC. 502. STATE BLOCK GRANT PROGRAM. 
(a) GENERAL REQUIREMENTS.—Section 47128(a) is 
amended— 
(1) in the first sentence by striking ‘‘prescribe 
regulations’’ and inserting ‘‘issue guidance’’; and 
(2) in the second sentence by striking ‘‘regula-
tions’’ and inserting ‘‘guidance’’. 
(b) 
APPLICATIONS
AND
SELECTION.—Section 
47128(b)(4) is amended by inserting before the semicolon 
the following: ‘‘, including the National Environmental 
VerDate Aug 31 2005 
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