nology Administration of the Department of Transpor-
tation. 
(b) In fiscal year 2009, the Secretary shall reform, 
by the most efficient means available, the aviation eco-
nomic data program for the collection and dissemination 
of airline traffic and financial data. 
SEC. 104. OFFICE OF COMMERCIAL SPACE TRANSPOR-
TATION. 
Section 70119 is amended— 
(1) in paragraph (4), by striking ‘‘and’’; 
(2) in paragraph (5), by striking ‘‘2009.’’ and 
inserting ‘‘2009; and’’; and 
(3) by inserting at the end: 
‘‘(6) $15,224,000 for fiscal year 2010.’’. 
SEC. 105. TRANSITION. 
(a) AUTHORIZATION FOR TRANSITION PERIOD.—For 
the purpose of supporting the transition to a user fee sys-
tem of financing under chapter 453, not more than 
$1,360,000,000 is authorized to be appropriated to the 
Secretary of Transportation from the general fund of the 
Treasury to provide services for an initial period of sixty 
days for which user fees under sections 45305 (air traffic 
control and related fees) and 45306 (registration, certifi-
cation and related fees) are assessed. 
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(b) FEE SURCHARGE.—The Administrator of the 
Federal Aviation Administration shall, subject to appro-
priation in advance, impose and collect a surcharge on the 
user fees established under sections 45305 and 45306 for 
fiscal year 2009 in an amount and manner so as to fully 
recover and return to the general fund in fiscal year 2009 
the amount used for transition costs under this section. 
TITLE II—USER FEE AUTHORITY 
SEC. 201. FEES. 
(a) IN GENERAL.—Chapter 453 is amended by add-
ing at the end the following: 
‘‘§ 45305. Air traffic control and related fees 
‘‘(a) SCHEDULE OF FEES.—(1) Not later than the 
date of transition, the Administrator of the Federal Avia-
tion Administration shall establish fees for air traffic con-
trol and related activities, services, facilities and equip-
ment provided by, or on behalf of, the Administration in 
accordance with this section. Except as provided in sub-
section (c), owners or operators of aircraft in the national 
airspace system shall pay the fees assessed under this sec-
tion. The Administrator may establish separate fees for 
aircraft operating in terminal, enroute, or oceanic air-
space. 
‘‘(2) For purposes of this section and section 45306, 
‘date of transition’ means October 1, 2008. 
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‘‘(3) In establishing fees under paragraph (1), the 
Administrator may establish interim fees for a period not 
to exceed one year after the date of transition, and may 
impose a surcharge on such fees in order to recover the 
full costs of services during the initial period of transition 
to user fees. The establishment of such interim fees would 
not be subject to the requirements of subsection (e)(2). 
‘‘(4) In accordance with this section, the Adminis-
trator may periodically modify the fees established under 
this section either on the Administrator’s own initiative, 
based on the requirements of the agency or the users of 
the National Airspace System, or on a recommendation 
from the Board under subsection (e)(2) of this section. 
‘‘(b) BASIS FOR FEES; COMPUTATION METHODS.— 
(1) EN ROUTE AND OCEANIC.—In establishing fees for 
aircraft operating in en route or oceanic airspace, includ-
ing fees for aircraft that operate in United States con-
trolled airspace but neither take off from, nor land in, the 
United States, the Administrator may base the fee on dis-
tance traveled, or on any other method that is consistent 
with the treaties and international agreements to which 
the United States is a party. 
‘‘(2) TERMINAL AIRSPACE.—For aircraft operations 
in terminal airspace, the Administrator may establish a 
fee with the following elements: 
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‘‘(A) for takeoffs and landings at airports with 
greater than 100,000 passenger boardings per year; 
‘‘(B) that may be based on the weight of the 
aircraft; 
‘‘(C) specifically for aircraft operating in ter-
minal airspace for a large hub airport, as defined by 
section 40102(a)(29); 
‘‘(D) specifically for terminal airspace for a 
large hub airport that varies with the time of day, 
day of the week, or for a particular large hub airport 
if the Administrator determines— 
‘‘(i) that such airspace is congested; 
‘‘(ii) that such congestion results in whole 
or in part from the limitation on the capacity 
of the large hub airport or airports; and 
‘‘(iii) that establishing such a fee will help 
reduce delays in the national airspace system; 
and 
‘‘(E) a fee that is different for nighttime oper-
ations than for daytime operations. 
‘‘(3) QUANTITATIVE STANDARDS.—For the purpose 
of the determinations required by paragraphs (b)(2)(D), 
the Administrator shall issue quantitative standards for 
the levels of airspace and airport congestion, operating 
delays, effect of airport delay on national system delay, 
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and feasibility of increasing the capacity of a congested 
airport, and make such determinations in accordance with 
those standards. 
‘‘(4) AIRCRAFT ALTITUDE.—Nothing in this section 
shall require the Administrator to take into account air-
craft altitude in establishing any fee for aircraft oper-
ations in terminal, en route or oceanic airspace. 
‘‘(5) INCENTIVE
FOR EQUIPAGE.—The Adminis-
trator may establish reduced fees for aircraft that are 
equipped with avionics whose use the Administrator deter-
mines would enhance the safety or efficiency of the Na-
tional Airspace System if the Administrator finds that 
such a fee structure would create an incentive for the pur-
chase and installation of such equipment. 
‘‘(6) RELATION
TO COSTS.—The fees established 
under this section shall be based on the costs to the Ad-
ministration of providing the air traffic control and related 
activities, services, facilities, and equipment using the 
available data derived from the agency’s cost accounting 
system and cost allocation system to users. For purposes 
of this section, the term ‘costs’ means those costs associ-
ated with the operation, maintenance, debt service, and 
overhead expenses of the services provided and the facili-
ties and equipment used in such services, including the 
projected costs for the period during which the services 
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will be provided, but shall not include the cost of providing 
services to aircraft described in subsection (c). 
‘‘(7) RESERVE.—The fees that the Administrator es-
tablishes under this section may also include amounts suf-
ficient to cover the costs of providing air traffic control 
and related activities, services, facilities and equipment in 
the event that receipts are less than projected, whether 
such a shortfall is caused by a decrease in aircraft oper-
ations, delinquent payment of fees by any person, or for 
another comparable reason. 
‘‘(8) ANNUAL REVIEW.—The Administrator shall 
provide for an annual independent review to validate that 
the agency used actual costs for the year, which were pre-
pared in accordance with generally accepted accounting 
principles, and compiled those costs in accordance with the 
agency’s documented cost allocation methodology. 
‘‘(9) FEES CREDITED
AS OFFSETTING COLLEC-
TIONS.—Any fee authorized to be collected under this sec-
tion shall, subject to appropriation made in advance— 
‘‘(A) be credited as offsetting collections to the 
account established under section 48201(a) of this 
title; and 
‘‘(B) be available to the Administrator for ex-
penditure only to pay the costs of activities and serv-
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ices for which the fee is imposed, including the costs 
to determine, assess, review and collect the fee. 
‘‘(10) EFFECT OF LAW ON FEE COLLECTION.—The 
Administrator may continue to assess and collect and 
spend fees established under this section during any pe-
riod in which the agency’s funding is provided under an 
Act providing continuing appropriations in lieu of the 
agency’s regular appropriations. 
‘‘(c) EXCEPTIONS.—(1) MILITARY AND OTHER PUB-
LIC AIRCRAFT.—Fees may not be assessed under this sec-
tion for air traffic control and related services provided 
to military aircraft, public aircraft (as defined in section 
40102 of this subtitle), air ambulance aircraft, or to mili-
tary or non-commercial civil aircraft of a foreign govern-
ment. 
‘‘(2) GENERAL AVIATION OPERATIONS.—Except for 
fees established for operations in terminal airspace for a 
large hub airport under subsection (b)(2), no fees may be 
established under this section for air traffic control and 
related services provided to aircraft operations using fuel 
for which a tax was paid under section 4081(a)(2) (except 
taxes 
paid 
at 
the 
rate 
specified 
in 
section 
4081(a)(2)(C)(i)) of title 26, United States Code. The ex-
ception provided by this subparagraph shall cease to be 
effective if the rate of tax for fuel under section 
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4081(a)(2) is lower than 70.0 cents per gallon, starting 
on the date of transition, except if the lower rate is the 
result of adjustments made under section 4081(a)(2) of 
title 26, United States Code. 
‘‘(3) FLIGHT PLAN INFORMATION.—Any person re-
quired to file a flight plan with the Administration, includ-
ing operators of flights described in paragraphs (1) and 
(2), must specify in the plan whether the person is en-
gaged in an operation for compensation or hire, or a gen-
eral aviation operation, or a military or public aircraft op-
eration, for purposes of this section. 
‘‘(4) CANADA TO CANADA FLIGHTS.—The Adminis-
trator may waive a fee that would otherwise be assessed 
under this chapter for flights that operate in U.S.-con-
trolled airspace but takeoff and land at an airport in Can-
ada without an intermediate stop outside Canada, if the 
Administrator determines that not assessing and collecting 
the fee for such flights would be in the public interest. 
‘‘(d) ADMINISTRATIVE PROVISIONS.—(1) FEES PAY-
ABLE
TO
THE
ADMINISTRATOR.—Fees assessed and 
amounts collected under this section are payable to the 
Administrator. The Administrator may refund any fee, or 
portion thereof, paid by mistake in excess of the amount 
required. 
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‘‘(2) COLLECTION
PROCEDURES.—The Adminis-
trator shall establish procedures for the collection of fees. 
These procedures shall establish the frequency of pay-
ment, deadlines for payment, a maximum amount of fees 
that may be outstanding on the account of any person, 
and such other limitations and conditions as the Adminis-
trator determines are necessary to obtain prompt payment 
of fees. 
‘‘(3) FAILURE TO PAY REQUIRED FEES.—If the Ad-
ministrator determines that any person has failed to pay 
fees when due under this section, or to comply with any 
limitation or condition on payment under this section, or 
to provide the Administration with the correct information 
in the person’s flight plan or by other means regarding 
the nature of the flight, including whether the person en-
gaged in an operation for compensation or hire or general 
aviation operation, the Administrator may— 
‘‘(A) assess interest charges, using a rate equal 
to 150 percent of a rate determined by the Secretary 
of the Treasury based on the average of bond equiv-
alent yields on 13-week Treasury bills auctioned dur-
ing the previous calendar quarter, to be redeter-
mined quarterly, on amounts that have not been 
paid by the deadline; 
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‘‘(B) change the required payment schedule for 
such person; 
‘‘(C) offset any amount of fees owed by with-
holding any payment otherwise owed or due to the 
person by the Secretary or the Administrator; 
‘‘(D) upon 24 hours notice, terminate, reduce, 
or withhold the provision of non-emergency air traf-
fic control and related services to such person, ex-
cept that, in any case involving a foreign air carrier, 
the Administrator shall take such actions as are nec-
essary to comply with applicable international agree-
ments; or 
‘‘(E) impose a civil penalty for each day 
amounts remain unpaid, or take other appropriate 
enforcement action under this subtitle. 
‘‘(4) ACTION WHEN FUTURE PAYMENT IN JEOP-
ARDY.—If the Administrator reasonably determines that 
an aircraft owner or operator will not pay its required fees 
when due, the Administrator may— 
‘‘(A) change the required payment schedule for 
such person; or 
‘‘(B) upon 24 hours notice, terminate, reduce, 
or withhold the provision of non-emergency air traf-
fic control and related services to such person, ex-
cept that, in any case involving a foreign air carrier, 
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the Administrator shall take such actions as are nec-
essary to comply with applicable international agree-
ments. 
‘‘(5) PAYMENT NOT STAYED PENDING REVIEW.—In 
any case where a person seeks administrative review of 
the Administrator’s action under this section, the collec-
tion of fees from that person may not be stayed pending 
resolution of the case. 
‘‘(e) CONSULTATION REQUIREMENTS; APPROVAL OF 
FEES.—(1) Prior to establishing or modifying fees under 
this section or section 45306 of this title, the Adminis-
trator shall consult with air carriers, including foreign air 
carriers, consistent with international agreements, and 
any other persons subject to such fees, and any other 
member of the public who wishes to file comments. For 
purposes of the section, ‘consult’ means to afford the op-
portunity to provide comments to, and have such com-
ments considered by, the Administrator. 
‘‘(2) Prior to establishing or modifying fees under 
this section or section 45306 of this title, the Adminis-
trator shall consult with and seek the recommendations 
of the type and level of such fees from the Air Transpor-
tation System Advisory Board (hereinafter ‘the Board’) 
established under section 106(p) of this title. The Board 
may, from time to time, recommend that the Adminis-
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trator modify established fees based on the needs of the 
agency or the users of the National Airspace System. If 
the Board fails to recommend approval of any fee pro-
posed by the Administrator, or if the Administrator fails 
to adopt the recommendation of the Board, the Adminis-
trator may establish or maintain such fees only after pub-
lishing in the Federal Register a written determination 
setting forth the reasons for the Administrator’s establish-
ment or modification of the fees and summarizing the 
views of the Board. 
‘‘(3) Any person who is subject to fees established 
in this section or section 45306 of this title, and who ob-
jects to the establishment or amount of such fees may ap-
peal that decision exclusively to the Secretary of Transpor-
tation. The Secretary may disapprove the establishment 
or modification of fees if the Secretary finds that the 
fees— 
‘‘(A) are not, in the case of fees under this sec-
tion, based on costs as described in subsection 
(b)(6); 
‘‘(B) do not fairly allocate system costs among 
users who pay fees; 
‘‘(C) unreasonably discriminate against a par-
ticular category of users of the system; or 
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‘‘(D) are not in accordance with the strategic 
plan of the Administration. 
‘‘(4) The decision of the Administrator to establish 
or modify a fee or schedule of fees under this section or 
section 45306 of this title shall be effective unless dis-
approved by the Secretary within 60 days after submission 
of the Administrator’s decision to the Secretary. The deci-
sion of the Secretary constitutes final agency action and 
is not subject to judicial review. 
‘‘(f) EFFECT ON OTHER FEES.—Unless otherwise 
specified, nothing in this section or section 45306 shall 
be construed as affecting fees previously authorized and 
established under this chapter. 
‘‘(g) EXEMPTION FROM RULEMAKING.—The require-
ments applicable to developing and issuing rules under 
title 5, United States Code, shall not apply to the actions 
of the Secretary, Administrator, or Board under this sec-
tion. 
‘‘(h) STATUS OF AIRPORT.—Based on fiscal year 
2006 data, the Administrator shall publish a list of air-
ports that meet the criteria for a large hub airport under 
subsection (b)(2). The Administrator shall periodically up-
date such list. If in the fiscal year during which the list 
is first published or in any subsequent fiscal year in which 
the list of airports is updated, an airport meets the criteria 
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for a large hub airport under subsection (b)(2), such air-
port shall be deemed to remain in such status for three 
years regardless of fluctuation in the passenger boardings 
during that time. 
‘‘(i) DEFINITIONS.—For the purposes of this sec-
tion— 
‘‘(1) ‘Air ambulance aircraft’ means— 
‘‘(A) rotorcraft, which are engaged in an 
operation to provide emergency medical serv-
ices; or 
‘‘(B) 
fixed-wing 
aircraft, 
which 
are 
equipped for and exclusively dedicated to pro-
viding acute care medical services. 
‘‘(2) ‘enroute airspace’ means airspace encom-
passing Class A and Class E airspace listed in part 
71 of title 14 of the Code of Federal Regulations 
and subpart B of Federal Aviation Administration 
Order 7400.9N or a successor order; 
‘‘(3) ‘terminal airspace’ means airspace encom-
passing Class B, Class C and Class D airspace listed 
in part 71 of title 14 of the Code of Federal Regula-
tions and subpart B of Federal Aviation Administra-
tion Order 7400.9N or a successor order. 
‘‘(4) ‘oceanic airspace’ means U.S. controlled 
airspace over an ocean. 
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‘‘§ 45306. Registration, certification and related fees 
‘‘(a) IMPOSITION OF REGISTRATION FEES.—On the 
date of transition, the Administrator shall establish the 
following fees for the following services or activities: 
‘‘(1) $130 for registering an aircraft. 
‘‘(2) $45 for replacing an aircraft registration. 
‘‘(3) $130 for issuing an original dealer’s air-
craft certificate. 
‘‘(4) $105 for issuing an additional aircraft cer-
tificate. 
‘‘(5) $80 for issuing a special registration num-
ber. 
‘‘(6) $50 for issuing a renewal of a special reg-
istration number. 
‘‘(7) $130 for recording a security interest. 
‘‘(8) $130 for recording a security interest in 
aircraft parts. 
‘‘(9) $50 for issuing an airman certificate. 
‘‘(10) $25 for issuing a replacement airman 
certificate. 
‘‘(11) $42 for issuing an airman medical certifi-
cate. 
‘‘(12) $100 for providing legal title opinions 
pertaining to aircraft transactions. 
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‘‘(b) ESTABLISHMENT OF CERTIFICATION FEES.— 
(1) The Administrator shall establish fees for the following 
services or activities: 
‘‘(A) The appointment of a designee (other than 
designated medical examiners). 
‘‘(B) The appointment of delegated organiza-
tions. 
‘‘(C) The training of a designee. 
‘‘(D) The issuance of a certificate to a flight 
school under Part 141 of title 14 of the Code of 
Federal Regulations. 
‘‘(E) The issuance of a certificate to a training 
center under Part 142 of title 14 of the Code of 
Federal Regulations. 
‘‘(F) The issuance of a certificate to a large do-
mestic repair station under part 145 of title 14 of 
the Code of Federal Regulations. 
‘‘(G) The issuance of a certificate to a medium 
domestic repair station under part 145 of title 14 of 
the Code of Federal Regulations. 
‘‘(H) The issuance of a certificate to a small 
domestic repair station under part 145 of title 14 of 
the Code of Federal Regulations. 
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‘‘(I) The issuance of a certificate to a large for-
eign repair station under part 145 of title 14 of the 
Code of Federal Regulations. 
‘‘(J) The issuance of a certificate to a medium 
foreign repair station under part 145 of title 14 of 
the Code of Federal Regulations. 
‘‘(K) The issuance of a certificate to a small 
foreign repair station under part 145 of title 14 of 
the Code of Federal Regulations. 
‘‘(L) The issuance of a certificate to a mainte-
nance technical school under part 147 of title 14 of 
the Code of Federal Regulations. 
‘‘(M) Training provided to foreign aviation au-
thorities. 
‘‘(2) RELATION TO COSTS.—The fees that the Ad-
ministrator establishes and assesses under this section, 
shall be based on the costs to the Administration of pro-
viding such activities and services using the available data 
derived from the agency’s cost accounting system and cost 
allocation system to users. For purposes of this section, 
the term ‘costs’ shall mean those costs associated with 
capital, operation and maintenance, and overhead, includ-
ing the projected costs for the period during which the 
services are provided. 
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‘‘(c) FEES FOR OTHER SERVICES.—The Adminis-
trator may establish and collect such additional fees as 
may be necessary to cover the cost of aviation certification, 
regulation, and related services not enumerated in sub-
section (b), including any additional cost of providing serv-
ices outside the United States. 
‘‘(d) FEES CREDITED
AS OFFSETTING COLLEC-
TIONS.—(1) Any fee authorized to be collected under this 
section shall, subject to appropriation made in advance— 
‘‘(A) be credited as offsetting collections to the 
account established under section 48202(a) of this 
title; and 
‘‘(B) be available for expenditure only to pay 
the costs of activities and services for which the fee 
is imposed, including the costs to determine, assess, 
review and collect the fee. 
‘‘(2) The Administrator may continue to assess and 
collect and spend fees established under this section dur-
ing any period in which the agency’s funding is provided 
under an Act providing continuing appropriations in lieu 
of the agency’s regular appropriations. 
‘‘(e) ADJUSTMENTS.—The Administrator shall peri-
odically adjust the fees established by subsections (a) or 
(b) in the following circumstances— 
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‘‘(1) to account for changes in the Consumer Price 
Index of All Urban Consumers published by the Secretary 
of Labor; 
‘‘(2) when data reveal that the cost of providing the 
service is higher or lower than the cost data that was used 
to establish the fee then in effect; or 
‘‘(3) when the Board recommends an adjustment in 
the fees, in accordance with the procedures under sub-
section (g). 
‘‘(f) ADMINISTRATIVE PROVISIONS.—(1) FEES PAY-
ABLE TO THE ADMINISTRATOR.—All fees assessed and 
amounts collected under this section are payable to the 
Administrator. The Administrator may refund any fee, or 
portion thereof, paid by mistake in excess of the amount 
required. 
‘‘(2) COLLECTION
PROCEDURES.—The Adminis-
trator shall establish procedures for the collection of fees. 
These procedures shall establish the frequency of pay-
ment, deadlines for payment, a maximum amount of fees 
that may be outstanding on the account of any person, 
and such other limitations and conditions as the Adminis-
trator determines are necessary to obtain prompt payment 
of fees. 
‘‘(3) FAILURE TO PAY REQUIRED FEES.—If the Ad-
ministrator determines that any person has failed to pay 
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fees when due under this section or to comply with any 
limitation or condition on payment under this section, the 
Administrator may— 
‘‘(A) assess interest charges, using a rate equal 
to 150 percent of a rate determined by the Secretary 
of the Treasury based on the average of bond equiv-
alent yields on 13-week Treasury bills auctioned dur-
ing the previous calendar quarter, to be redeter-
mined quarterly, on amounts that have not been 
paid by the deadline; 
‘‘(B) change the required payment schedule for 
such person; 
‘‘(C) upon 24 hours notice to the person, termi-
nate, reduce or withhold non-emergency services or 
in any case involving a foreign air carrier, the Ad-
ministrator shall take such actions as are necessary 
to comply with applicable international agreements; 
or 
‘‘(D) impose a civil penalty for each day 
amounts remain unpaid, or take other appropriate 
enforcement action under this subtitle. 
‘‘(4) ACTION WHEN FUTURE PAYMENT IN JEOP-
ARDY.—If the Administrator reasonably determines that 
a person will not pay its required fees when due, the Ad-
ministrator may— 
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‘‘(A) change the required payment schedule for 
such person; or 
‘‘(B) upon 24 hours notice, terminate, reduce, 
or withhold non-emergency services to such person, 
except that, in any case involving a foreign air car-
rier, the Administrator shall take such actions as are 
necessary to comply with applicable international 
agreements. 
‘‘(5) PAYMENT NOT STAYED PENDING REVIEW.—In 
any case where a person seeks administrative review of 
the Administrator’s action under this section, the collec-
tion of fees from that person may not be stayed pending 
resolution of the case. 
‘‘(g) PROCEDURE FOR IMPOSITION OF FEES.—In es-
tablishing or modifying fees under this section, the proce-
dures and requirements of section 45305(e) of this title 
shall apply. 
‘‘(h) EXEMPTION FROM RULEMAKING.—The require-
ments applicable to developing and issuing rules under 
title 5, United States Code, shall not apply to the actions 
of the Secretary, Administrator, or Board under this sec-
tion. 
‘‘§ 45307. Rules of construction 
‘‘Notwithstanding any other law, the fees computed, 
established, assessed, modified or approved under this 
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chapter shall be governed by the provisions of this chapter 
and not the provisions of section 9701 of title 31. 
‘‘§ 45308. Borrowing authority 
‘‘(a) IN GENERAL.—(1) In order to support the tran-
sition to the Next Generation Air Transportation System, 
in fiscal years 2013 through 2017 the Secretary of Trans-
portation is authorized to issue obligations to the Sec-
retary of the Treasury to finance capital investments in 
the facilities and equipment of the air traffic control sys-
tem to be owned and operated by the Federal Aviation 
Administration. The Secretary of the Treasury, in the Sec-
retary’s discretion, may purchase any such obligations, 
provided that the Secretary first determines that there is 
reasonable assurance of repayment of such obligations. 
‘‘(2) The Secretary shall not issue any obligations 
under paragraph (1) without first obtaining approval by 
the Director of the Office of Management and Budget of 
the issuance of such obligations and proposed investments 
to be financed. 
‘‘(b) CONDITIONS AND LIMIT ON INDEBTEDNESS.— 
Obligations issued under this section shall be in such 
forms and denominations, bear such maturities, and shall 
be subject to such terms and conditions as may be pre-
scribed by the Secretary of the Treasury. The aggregate 
amount of all such obligations shall not exceed 
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$5,000,000,000 and all obligations shall be repaid by the 
Secretary of Transportation by the end of fiscal year 
2017. 
‘‘(c) USER FEE INCREASE.—Upon the issuance of 
obligations under paragraph (1), the Secretary of Trans-
portation shall increase the user fees authorized in sec-
tions 45305 and 45306 in each of the fiscal years 2013 
to 2017 in the amounts required to repay such obligations 
with interest, and such payments shall have first priority 
in the use of fees collected during this period. This in-
crease in user fees shall not be treated as discretionary 
offsetting collections and shall only be used to repay the 
obligations incurred under paragraph (1). 
‘‘(d) INTEREST RATE.—The interest rate on obliga-
tions issued under this section shall be a rate determined 
by the Secretary of the Treasury, taking into consideration 
the current market yields on outstanding marketable obli-
gations of the United States of comparable maturity, plus 
a surcharge, determined by the Secretary of the Treasury, 
to be sufficient to cover any potential losses and the ad-
ministrative costs associated with the obligations. Any sur-
charges for administrative costs collected by the Secretary 
of the Treasury shall be credited to the appropriation ac-
count which incurred the cost. 
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‘‘(e) PURCHASE OF OBLIGATIONS.—For the purposes 
of purchasing obligations under subsection (a), the Sec-
retary of the Treasury may use as a public debt trans-
action the proceeds from the sale of any securities issued 
under chapter 31 of title 31, United States Code, and the 
purposes for which securities may be issued under such 
chapter are extended to include any purchase of such obli-
gations under this subsection.’’. 
(b) CONFORMING AMENDMENT.— 
(1) The analysis of chapter 453 is amended— 
(A) by inserting in the title after ‘‘FEES’’, 
‘‘AND FINANCING’’; 
(B) by adding at the end the following: 
‘‘45305. Air traffic control and related fees. 
‘‘45306. Certification, registration, and related fees. 
‘‘45307. Rules of construction. 
‘‘45308. Borrowing authority.’’. 
(2) The analysis of Part A of subtitle VII is 
amended by revising the entry for chapter 453 to 
read as follows: 
‘‘453. FEES AND FINANCING ............................................45301 (reserved)’’. 
SEC. 202. CONFORMING AMENDMENTS. 
(a) CIVIL PENALTIES.—Section 46301 is amended— 
(1) in paragraph (a)(1)(A), by inserting ‘‘chap-
ter 453,’’ before ‘‘section 47107(b)’’; and 
(2) in paragraph (a)(5), by 
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(A) striking ‘‘or chapter 449’’ and insert-
ing ‘‘chapter 449’’; and 
(B) striking ‘‘44907–44909)’’ and insert-
ing ‘‘44907–44909), or chapter 453’’. 
(b) FEES FOR OVERFLIGHTS, FOREIGN SERVICES 
AND SERVICES TO GENERAL AVIATION.—Effective Octo-
ber 1, 2008, sections 45301 and 45302 are repealed. 
(c) ADMINISTRATIVE PROVISIONS.—Effective Octo-
ber 1, 2008, in section 45303— 
(1) subsections (a), (b) and (c) are repealed; 
and 
(2) subsections (d), (e) and (f) are redesignated 
as (a), (b) and (c) respectively. 
TITLE III—AIRPORT IMPROVE-
MENT 
PROGRAM 
AMEND-
MENTS 
SEC. 301. REFORM OF PASSENGER FACILITY CHARGE AU-
THORITY. 
(a) BROADENING ELIGIBILITY.—(1) Section 40117 
is amended— 
(A) in the title, by striking ‘‘fees’’ and inserting 
‘‘charges’’; 
(B) in subsection (a)(3), by striking paragraphs 
(A) through (G) and inserting: 
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‘‘(A) A project for capital costs of the air-
port or local airport system under section 
47107(b)(1)(A) and (B). 
‘‘(B) A project for capital costs of a local 
facility that is directly and substantially related 
to air transportation of passengers or property 
and that is available for public use under sec-
tion 47107(b)(1)(C).’’; 
(C) by revising paragraph (a)(4) to read as fol-
lows: 
‘‘(4) INTERMODAL GROUND ACCESS PROJECT.— 
The term ‘intermodal ground access project’ means 
a local facility that is directly and substantially re-
lated to the movement of passengers or property in 
the form of a fixed guideway system (as defined in 
section 5302 of this title), that is a component of a 
fixed guideway system that provides transportation 
services to the general public or that connects to 
such a fixed guideway system.’’; 
(D) in paragraph (a)(5), by striking ‘‘FEE’’ or 
‘‘fee’’ 
each 
time 
it 
appears 
and 
inserting 
‘‘CHARGE’’ or ‘‘charge’’, respectively; 
(E) in paragraph (a)(6), by striking ‘‘fee.’’ and 
inserting ‘‘charge.’’. 
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(2) 
CONFORMING
AMENDMENTS.—(A) 
Section 
47107(b)(1)(C) is amended to read as follows: 
‘‘(C) any other local facility that is directly 
and substantially related to air transportation 
of passengers or property and that is available 
for public use.’’. 
(B) Section 47133(a)(3) is amended to read as fol-
lows: 
‘‘(3) any other local facility that is directly and 
substantially related to air transportation of pas-
sengers or property and that is available for public 
use.’’. 
(b) INCREASE IN PFC MAXIMUM LEVEL.—Section 
40117(b) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘The Secretary of Trans-
portation may authorize under this section an 
eligible agency to’’ and inserting ‘‘An eligible 
agency may’’; 
(B) by striking ‘‘fee’’ both times it appears 
and inserting ‘‘charge’’; 
(C) by striking ‘‘or $3’’ and inserting ‘‘$3, 
$4, $4.50, $5, $6’’; and 
(D) by inserting at the end, ‘‘An eligible 
agency that is approved by the Administrator to 
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participate in the pilot program established 
under section 44518 of this title may impose a 
passenger facility charge of $7.’’; 
(2) in paragraph (2), by inserting ‘‘directly or 
indirectly’’ before ‘‘regulate’’; 
(3) in paragraph (3), by striking ‘‘fee’’ and in-
serting ‘‘charge’’; and 
(4) by striking paragraphs (4), (5) and (6). 
(c) 
PASSENGER
FACILITY
CHARGE
STREAM-
LINING.—Section 40117(c) is revised to read as follows: 
‘‘(c) PROCEDURAL REQUIREMENTS FOR IMPOSITION 
OF PASSENGER FACILITY CHARGE.—(1) An eligible agen-
cy must submit to those air carriers and foreign air car-
riers operating at the airport with a significant business 
interest, as defined in paragraph (3), and to the Secretary 
and make available to the public annually a report, in the 
form required by the Secretary, on the status of the eligi-
ble agency’s passenger facility fee program, including the 
following: 
‘‘(A) the total amount of program revenue held 
by the agency at the beginning of the twelve months 
covered by the report; 
‘‘(B) the total amount of program revenue col-
lected by the agency during the period covered by 
the report; 
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‘‘(C) the amount of expenditures with program 
revenue made by the agency on each eligible airport- 
related project during the period covered by the re-
port; 
‘‘(D) each airport-related project for which the 
agency plans to collect and use program revenue 
during the next twelve-month period covered by the 
report, including the amount of revenue projected to 
be used for such project; 
‘‘(E) the level of program revenue the agency 
plans to collect during the next twelve-month period 
covered by the report; 
‘‘(F) a description of the notice and consulta-
tion process with air carriers and foreign air carriers 
under paragraph (3), and with the public under 
paragraph (4), including a copies of any adverse 
comments received and how the agency responded; 
and 
‘‘(G) any other information on the program 
that the Secretary may require. 
‘‘(2) IMPLEMENTATION.—Subject to the require-
ments of paragraphs (3) and (4), (5) and (6), the eligible 
agency may implement the planned collection and use of 
passenger facility charges in accordance with its report 
upon filing the report as required in paragraph (1). 
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‘‘(3) CONSULTATION WITH CARRIERS
FOR NEW 
PROJECTS.—(A) An eligible agency proposing to collect or 
use passenger facility charge revenue for a project not pre-
viously approved by the Secretary or not included in a re-
port required by paragraph (1) that was submitted in a 
prior year, or an eligible agency proposing to increase the 
level of the passenger facility charge to be collected at the 
airport, must provide to air carriers and foreign air car-
riers operating at the airport reasonable notice, and an 
opportunity to comment on the planned collection and use 
of program revenue before providing the report required 
under paragraph (1). The Secretary shall prescribe by reg-
ulation what constitutes reasonable notice under this para-
graph, which shall at a minimum include— 
‘‘(i) that the eligible agency provide to air car-
riers and foreign air carriers operating at the airport 
written notice of the planned collection and use of 
passenger facility charge revenue; 
‘‘(ii) that the notice include a full description 
and justification for a proposed project; 
‘‘(iii) a detailed financial plan for the proposed 
project; and 
‘‘(iv) the proposed level for the passenger facil-
ity charge. 
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‘‘(B) An eligible agency providing notice and an op-
portunity for comment shall be deemed to have satisfied 
the requirements of this paragraph if the eligible agency 
provides such notice to air carriers and foreign air carriers 
that have a significant business interest at the airport. For 
purposes of this paragraph, the term ‘‘significant business 
interest’’ means an air carrier or foreign air carrier that— 
‘‘(i) had not less than 1.0 percent of passenger 
boardings at the airport in the prior calendar year; 
‘‘(ii) had at least 25,000 passenger boardings at 
the airport in the prior calendar year; or 
‘‘(iii) provides scheduled service at the airport. 
‘‘(C) Not later than 45 days after written notice is 
provided under subparagraph (A), each air carrier and 
foreign air carrier may provide written comments to the 
eligible agency indicating its agreement or disagreement 
with the project or, if applicable, the proposed level for 
a passenger facility charge. 
‘‘(D) The eligible agency may include, as part of the 
notice and comment process, a consultation meeting to 
discuss the proposed project or, if applicable, the proposed 
level for a passenger facility charge. If the agency provides 
a consultation meeting, the written comments specified in 
subparagraph (C) shall be due not later than 30 days after 
the meeting. 
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‘‘(4) PUBLIC NOTICE AND COMMENT.—(A) An eligi-
ble agency proposing to collect or use passenger facility 
charge revenue for a project not previously approved by 
the Secretary or not included in a report required by para-
graph (1) that was filed in a prior year, or an eligible 
agency proposing to increase the level of the passenger fa-
cility charge to be collected, must provide reasonable no-
tice and an opportunity for public comment on the planned 
collection and use of program revenue before providing the 
report required in paragraph (1). 
‘‘(B) The Secretary shall prescribe by regulation 
what constitutes reasonable notice under this paragraph, 
which shall at a minimum require— 
‘‘(i) that the eligible agency provide public no-
tice of intent to collect a passenger facility charge so 
as to inform those interested persons and agencies 
that may be affected; 
‘‘(ii) appropriate methods of publication, which 
may include notice in local newspapers of general 
circulation or other local media, or posting of the no-
tice on the agency’s internet website; and 
‘‘(iii) submission of public comments no later 
than 45 days after the date of the publication of the 
notice. 
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‘‘(5) OBJECTIONS.—(A) Any interested person may 
file with the Secretary a written objection to a proposed 
project or to a proposed increase in the level of a pas-
senger facility charge included in a notice under this para-
graph provided that the filing is made within 30 days after 
submission of the report specified in paragraph (1). 
‘‘(B) The Secretary shall provide not less than 30 
days for the eligible agency to respond to any filed objec-
tion. 
‘‘(C) Not later than 90 days after receiving the eligi-
ble agency’s response to a filed objection, the Secretary 
shall make a determination whether or not to terminate 
authority to collect the passenger facility charge for the 
project or at the increased level, based on the filed objec-
tion. The Secretary shall state the reasons for any deter-
mination. The Secretary may only terminate authority 
if— 
‘‘(i) the project is not an eligible airport related 
project; 
‘‘(ii) the eligible agency has not complied with 
the requirements of this section or the Secretary’s 
implementing regulations in proposing the project; 
‘‘(iii) the eligible agency has been found to be 
in violation of section 47107(b) of this title and has 
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failed to take corrective action, prior to the filing of 
the objection; or 
‘‘(iv) in the case of a proposed increase in the 
passenger facility charge level, the level is not au-
thorized by this section. 
‘‘(D) Upon issuance of a decision terminating author-
ity, the public agency shall prepare an accounting of pas-
senger facility revenue collected under the terminated au-
thority and restore the funds for use on other authorized 
projects. 
‘‘(E) Except as provided in paragraph (C), the eligi-
ble agency may implement the planned collection and use 
of a passenger facility charge in accordance with its report 
upon filing the report as specified in paragraph (1)(A). 
‘‘(6) APPROVAL REQUIREMENT
FOR INTERMODAL 
GROUND ACCESS PROJECT.—(A) An eligible agency may 
not collect or use a passenger facility charge to finance 
an intermodal ground access project, unless the project is 
first approved by the Secretary in accordance with this 
paragraph. 
‘‘(B) The eligible agency may submit to the Secretary 
an application for authority to impose a passenger facility 
charge for an intermodal ground access project. The appli-
cation shall contain information and be in the form that 
the Secretary may require by regulation but, at a min-
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imum, must include copies of any comments received by 
the agency during the comment period described by sub-
paragraph (C). 
‘‘(C) Before submitting an application under this 
paragraph, an eligible agency must provide air carriers 
and foreign air carriers operating at the airport, and the 
public, reasonable notice of and an opportunity to com-
ment on a proposed intermodal ground access project. 
Such notice and opportunity to comment shall conform to 
the requirements of paragraphs (3) and (4). 
‘‘(D) After receiving an application, the Secretary 
may provide air carriers, foreign air carriers and other in-
terested persons notice and an opportunity to comment 
on the application. The Secretary shall make a final deci-
sion on the application not later than 120 days after re-
ceiving it.’’. 
(d) CONFORMING CHANGES.—(1) CORRECTION.—In 
subsections (d) through (m) of section 40117, by— 
(A) striking ‘‘fee’’ or ‘‘fees’’ wherever the terms 
appear and inserting ‘‘charge’’ or ‘‘charges’’, respec-
tively; and 
(B) striking ‘‘FEE’’ or ‘‘FEES’’ wherever the 
terms 
appear 
and 
inserting 
‘‘CHARGE’’ 
or 
‘‘CHARGES’’, respectively. 
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(2) LIMITATIONS ON APPROVING APPLICATIONS.— 
Section 40117(d) is amended— 
(A) in the first sentence, by striking ‘‘sub-
section (c) of this section to finance a specific’’ and 
inserting ‘‘subsection (c)(6) of this section to finance 
an intermodal ground access’’; 
(B) in paragraph (1), by— 
(i) striking ‘‘fee’’ and inserting ‘‘charge’’; 
and 
(ii) striking ‘‘specific’’; 
(C) by revising paragraph (2) to read as fol-
lows: 
‘‘(2) the project is an eligible airport-related 
project; and’’; 
(D) in paragraph (3), by striking ‘‘each of the 
specific projects; and’’ and inserting ‘‘the project.’’; 
and 
(E) by striking paragraph (4). 
(3) LIMITATIONS
ON
IMPOSING
FEES.—Section 
40117(e)(1) is amended to read as follows: 
‘‘An eligible agency may impose a passenger fa-
cility charge only subject to terms the Secretary may 
prescribe to carry out the objectives of this section.’’. 
(4) LIMITATIONS ON CONTRACTS, LEASES, AND USE 
AGREEMENTS.—Section 40117(f)(2) is amended— 
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(A) by striking ‘‘long-term’’; and 
(B) by striking ‘‘Secretary.’’ and inserting 
‘‘Secretary, except a project for replacement of bag-
gage conveyor systems and reconfiguration of ter-
minal baggage areas that the Secretary determines 
are necessary to install bulk explosive detection de-
vices.’’. 
(5) COMPLIANCE.—Section 40117(h) is amended— 
(A) by inserting a new paragraph (3) as fol-
lows: 
‘‘(3) The Secretary may, on complaint of an in-
terested person or on the Secretary’s own initiative, 
conduct an investigation into an eligible agency’s col-
lection and use of passenger facility charge revenue 
to determine whether a passenger facility charge is 
excessive or that passenger facility revenue is not 
being used as provided in this section. The Secretary 
shall prescribe regulations establishing procedures 
for complaints and investigations. The regulations 
may provide for the issuance of a final agency deci-
sion without resort to an oral evidentiary hearing. 
The Secretary shall not accept complaints filed 
under this paragraph until after the issuance of reg-
ulations establishing complaint procedures.’’; and 
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(B) by redesignating paragraph (3) as para-
graph (4). 
(6) PILOT PROGRAM FOR PFC AT NONHUB AIR-
PORTS.—Section 40117(l) is amended— 
(A) in paragraph (2), by striking ‘‘(c)(2)’’ and 
inserting ‘‘(c)(3)’’; and 
(B) in paragraph (7), by striking ‘‘date that is 
3 years after the date of issuance of regulations to 
carry out this subsection.’’ and inserting ‘‘date of 
issuance of regulations to carry out subsection (c) of 
this section, as amended by the Next Generation Air 
Transportation System Financing Reform Act of 
2007.’’. 
(7) PROHIBITION
ON APPROVING PFC APPLICA-
TIONS
FOR
AIRPORT
REVENUE
DIVERSION.—Section 
47111(e) is amended in the first sentence by striking from 
‘‘sponsor, and withhold approval of any new application 
to impose a fee under section 40117.’’ through the end 
of the subsection, and inserting ‘‘sponsor. A sponsor shall 
not propose collection or use of passenger facility charges 
for any new projects under section 40117(c)(3)–(6) unless 
the Secretary determines that the sponsor has taken cor-
rective action to address the violation and the violation 
no longer exists.’’. 
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SEC. 302. AMENDMENTS TO AIP DEFINITIONS. 
Section 47102 is amended— 
(1) in subsection (3), 
(A) in clause (B)(iv), by striking ‘‘20’’ and 
inserting ‘‘9’’; and 
(B) by adding at the end, the following: 
‘‘(M) construction of mobile refueler park-
ing within a fuel farm at a nonprimary airport 
meeting the requirements of section 112.8 of 
title 40 of the Code of Federal Regulations. 
‘‘(N) terminal development subject to the 
provisions of section 47119.’’. 
(2) by inserting the following new paragraph 
(8) and redesignating paragraphs (8) through (22) 
as paragraphs (9) through (23), respectively: 
‘‘(8) a ‘general aviation airport’ means a public 
airport in a State that the Secretary determines— 
‘‘(A) does not have scheduled service; or 
‘‘(B) has scheduled service with less than 
2,500 passenger boardings each year.’’; 
(3) by inserting the following new paragraph 
(24) and redesignating paragraphs (23) through 
(25) as (25) through (27), respectively: 
‘‘(24) ‘revenue producing aeronautical support 
facilities’ means new fuel farms, new hangar build-
ings, self-service credit card aeronautical fueling sys-
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tems, airplane wash racks, major rehabilitation of a 
hangar owned by a sponsor, or other aeronautical 
support facilities that the Secretary determines will 
increase the revenue producing ability of the air-
port.’’; and 
(4) by inserting at the end the following new 
paragraph (28): 
‘‘(28) ‘terminal development’ means— 
‘‘(A) development of an airport passenger 
terminal building, including terminal gates, ac-
cess roads servicing exclusively airport traffic 
that leads directly to or from a terminal build-
ing, and walkways that lead directly to or from 
a terminal building; and 
‘‘(B) the cost of a vehicle under section 
47119(a) of this title.’’. 
SEC. 303. AMENDMENTS TO GRANT ASSURANCES. 
Section 47107 is amended— 
(1) in clause (a)(16)(D)(ii), by striking ‘‘made;’’ 
and inserting ‘‘made, except that, if there is a 
change in airport design standards that the Sec-
retary determines is beyond the owner or operator’s 
control that requires the relocation or replacement of 
an existing airport facility, the Secretary, upon the 
request of the owner or operator, may grant funds 
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available under section 47114 to pay the cost of re-
locating or replacing such facility.’’; and 
(2) in clause (c)(2)(A)(iii), by striking from 
‘‘paid to the Secretary’’ through the end of the 
clause, and inserting ‘‘reinvested in another project 
at the airport or transferred to another airport as 
the Secretary prescribes. In approving the reinvest-
ment or transfer of such proceeds, the Secretary 
shall give preference, in descending order, to the fol-
lowing actions: 
‘‘(I) reinvestment in an approved 
noise compatibility project; 
‘‘(II) reinvestment in an ap-
proved project that is eligible for 
funding under section 47117(e); 
‘‘(III) reinvestment in an airport 
development project that is eligible for 
funding under sections 47114, 47115 
or 47117 and meets the requirements 
of this chapter; 
‘‘(IV) transfer to another sponsor 
of another public airport to be rein-
vested in an approved noise compat-
ibility project at such airport; and 
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‘‘(V) payment to the Secretary 
for deposit in the Airport and Airway 
Trust Fund established under section 
9502 of the Internal Revenue Code of 
1986 (26 U.S.C. 9502);’’. 
SEC. 304. GOVERNMENT SHARE OF PROJECT COSTS. 
Section 47109 is amended— 
(1) in subsection (a) by— 
(A) by striking ‘‘subsection (b) or sub-
section (c)’’ and inserting ‘‘subsections (b), (c) 
or (e)’’; 
(B) by striking ‘‘is—’’ and inserting ‘‘may 
not exceed—’’; 
(C) by striking paragraphs (1) and (2) and 
adding the following new paragraphs: 
‘‘(1) 50 percent for an airfield pavement reha-
bilitation project for runways, taxiways or aircraft 
aprons at a large hub or medium hub primary air-
port, as defined in section 47102; 
‘‘(2) 75 percent for other approved airport de-
velopment projects at a large hub or medium hub 
primary airport, as defined in section 47102; 
‘‘(3) 95 percent for a project funded by a grant 
issued to a nonprimary airport that is not appor-
tioned funds under section 47114 of this title;’’; 
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(D) by redesignating paragraphs (3), (4), 
and (5) as paragraphs (4), (5), and (6); and 
(2) in subsection (f), by striking ‘‘47118(f)’’ 
and inserting ‘‘47118(e)’’; and 
(3) by adding at the end the following: 
‘‘(e) SPECIAL RULE FOR TRANSITION FROM SMALL 
HUB TO MEDIUM HUB STATUS.—If the status of a small 
hub primary airport changes to a medium hub primary 
airport, the United States Government’s share of allow-
able project costs for the airport may not exceed 90 per-
cent for two fiscal years following such change in hub sta-
tus.’’. 
SEC. 305. AMENDMENTS TO ALLOWABLE COSTS. 
Section 47110 is amended— 
(1) by revising subsection (d) to read as follows: 
‘‘(d) RELOCATION
OF
AIRPORT-OWNED
FACILI-
TIES.—The Secretary may determine that the costs of re-
locating or replacing an airport-owned facility are allow-
able for an airport development project at an airport only 
if— 
‘‘(1) the Government’s share of such costs is 
paid with funds apportioned to the airport sponsor 
under sections 47114(c)(1) or 47114(d)(2); 
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‘‘(2) the Secretary determines that the reloca-
tion or replacement is required due to a change in 
the Secretary’s design standards; and 
‘‘(3) the Secretary determines that the change 
is beyond the control of the airport sponsor.’’; and 
(2) in subsection (h) by striking ‘‘facilities, in-
cluding fuel farms and hangars,’’ and inserting ‘‘fa-
cilities, as defined by section 47102,’’. 
SEC. 306. SIMPLIFICATION AND REFORM OF APPORTION-
MENT FORMULAS. 
Section 47114 is amended— 
(1) in subsection (c)(1)— 
(A) in subparagraph (A), by striking ‘‘pri-
mary airport’’ and inserting ‘‘small hub and 
nonhub primary airport’’; 
(B) in clause (A)(i), by striking ‘‘$7.80’’ 
and inserting ‘‘$15.60’’; 
(C) in clause (A)(ii), by striking ‘‘$5.20’’ 
and inserting ‘‘$10.40’’; 
(D) in clause (A)(iii), by striking ‘‘$2.60’’ 
and inserting ‘‘$5.20’’; 
(E) in clause (A)(iv), by striking ‘‘$.65’’ 
and inserting ‘‘$1.30’’; 
(F) in clause (A)(v), by striking ‘‘$.50’’ 
and inserting ‘‘$1.00’’; 
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(G) in subparagraph (B), by striking 
‘‘$650,000’’ and all that follows through the 
end of the sentence and inserting ‘‘$1,000,000 
nor more than $26,000,000 may be apportioned 
under subparagraph (A) of this paragraph to 
an airport sponsor of each large hub and me-
dium hub primary airport for fiscal years 2008 
and 2009, and to each airport sponsor for a 
small hub and nonhub primary airport for each 
fiscal year.’’ 
(H) by amending subparagraph (C) to 
read as follows: 
‘‘(C) TRANSITIONAL RULE FOR LARGE AND 
MEDIUM HUB AIRPORTS.—In fiscal years 2008 
and 2009, the Secretary shall apportion to each 
large and medium hub airport an amount equal 
to 50 percent of the amount that is calculated 
using the formulas set forth in subparagraph 
(A).’’; 
(I) in subparagraph (D), by striking ‘‘(B) 
or (C), as appropriate,’’ and inserting ‘‘(B)’’; 
and 
(J) by striking subparagraph (F) and re-
designating subparagraph (G) as subparagraph 
(F); 
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(2) in subsection (c)(2)— 
(A) in subparagraph (A), by striking 
‘‘(D),’’ and inserting ‘‘(C),’’; and 
(B) by striking subparagraph (C) and re-
designating subparagraphs (D) and (E) as (C) 
and (D), respectively; 
(3) in subsection (d)— 
(A) in subparagraph (2), by— 
(i) striking ‘‘18.5 percent’’ and insert-
ing ‘‘10 percent’’; and 
(ii) adding a new subparagraph at the 
end as follows: 
‘‘(D) MINIMUM APPORTIONMENT.—In any 
fiscal year in which the total amount made 
available for apportionment under this sub-
section is less than $300,000,000, the Secretary 
shall reduce, on a prorated basis, the amount to 
be apportioned under subparagraph (d)(3)(A) 
of this section, and make such reduction avail-
able to be apportioned under this subsection, so 
as to meet a minimum apportionment of 
$300,000,000.’’; and 
(B) by revising paragraph (3) to read as 
follows: 
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‘‘(3) NONPRIMARY AIRPORTS.—Except as pro-
vided in subsection (2)(D), the Secretary shall each 
fiscal year apportion— 
‘‘(A) to each airport, excluding primary 
airports but including reliever and nonprimary 
commercial service airports– 
‘‘(i) $400,000 to each airport that is 
either a nonprimary commercial service 
airport or a reliever or that is a nonpri-
mary airport having 100 or more oper-
ational registered based aircraft; 
‘‘(ii) $200,000 to each airport that is 
a nonprimary airport (other than a nonpri-
mary commercial service or reliever air-
port), having 50 and 99 operational reg-
istered based aircraft, or three or more 
operational registered based jet aircraft; 
and 
‘‘(iii) $100,000 to each airport that is 
a nonprimary airport (other than a nonpri-
mary commercial service airport or a re-
liever airport), and has 10 to 49 oper-
ational, registered based aircraft. 
‘‘(B) For purposes of subparagraph (A), 
the terms ‘operational registered based aircraft’ 
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or ‘operational registered based jet aircraft’ 
shall be as defined in the Federal Aviation Ad-
ministration’s National Flight Data Center Air-
port Data Base or in a comparable, updated 
agency database.’’; 
(4) subsection (e) is amended— 
(A) in subparagraph (1)(B), by inserting 
‘‘twice’’ before ‘‘the minimum’’; and 
(B) by striking paragraph (4); 
(5) in subsection (f)(1)— 
(A) by striking ‘‘in a fiscal year to the 
sponsor of an airport having at least .25 per-
cent of the total number of boardings each year 
in the United States’’ and inserting ‘‘in fiscal 
years 2008 and 2009 to a sponsor of a large 
hub or medium hub airport’’; 
(B) in subparagraph (B), by striking 
‘‘$3.00,’’ and inserting ‘‘$3.00, but not more 
than $4.50,’’; 
(C) by adding a new subparagraph at the 
end as follows: 
‘‘(C) in the case of a passenger facility charge 
of more than $4.50, 100 percent of the projected 
revenues from the charge in the fiscal year but not 
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by more than 100 percent of the amount that other-
wise would be apportioned under this section.’’; and 
(D) by striking ‘‘fee’’ each place it appears 
and inserting ‘‘charge’’; 
(6) in subsection (f)(2), by striking ‘‘fee’’ each 
time it appears and inserting ‘‘charge’’; and 
(7) by adding at the end the following: 
‘‘(g) ENVIRONMENTAL SET-ASIDE.—(1) The Sec-
retary may apportion at least 8 percent of the amount sub-
ject to apportionment for each fiscal year for grants for— 
‘‘(A) airport noise compatibility planning under 
section 47505(a)(2); 
‘‘(B) carrying out noise compatibility programs 
under section 47504(c); 
‘‘(C) noise mitigation projects approved in an 
environmental record of decision for an airport de-
velopment project under this title; 
‘‘(D) for compatible land use planning projects 
carried out by State and local governments under 
section 47141; 
‘‘(E) for airport development described in sec-
tion 47102(3)(F), 47102(3)(K) or 47102(3)(L) to 
comply with the Clean Air Act (42 U.S.C. 7401 et 
seq.); 
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‘‘(F) for water quality mitigation projects to 
comply with the Clean Water Act (33 U.S.C. 1251 
et seq.) approved in an environmental record of deci-
sion for an airport development project under this 
title; and 
‘‘(G) for carrying out an environmental mitiga-
tion demonstration project under section 47143 of 
this title. 
‘‘(2) The Secretary may count the amount of grants 
made for such planning and programs with funds appor-
tioned under section 47114 in that fiscal year in deter-
mining whether or not such 8 percent requirement is being 
met in that fiscal year.’’. 
SEC. 307. MINIMUM AMOUNT FOR THE DISCRETIONARY 
FUND. 
Section 47115(g)(1) is amended by striking from 
‘‘sum of—’’ through the end of clause (B) and inserting 
‘‘sum of $520,000,000.’’. 
SEC. 308. FUNDING OF SPACE TRANSPORTATION INFRA-
STRUCTURE GRANTS PROGRAM. 
Section 47115 is amended by adding at the end the 
following new subsection: 
‘‘(k) FUNDING OF SPACE TRANSPORTATION INFRA-
STRUCTURE MATCHING GRANTS.—Notwithstanding any 
other provision of this chapter, from amounts made avail-
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able under this section, the Secretary may issue a grant 
for a project under section 70301 of this title, provided 
that, in issuing such a grant, the Secretary shall follow 
the provisions of chapter 703 of this title. Not more than 
$10,000,000 per fiscal year shall be available for grants 
under this subsection.’’. 
SEC. 309. REPEAL OF SMALL AIRPORT FUND. 
Section 47116 is repealed. 
SEC. 310. CREATION OF NEW SMALL AIRPORT SET-ASIDE, 
AND REPEAL OF THE MILITARY AND RE-
LIEVER AIRPORT SET-ASIDES. 
Section 47117(e) is amended to read as follows: 
‘‘(e) SMALL AIRPORT SET-ASIDE.—Each fiscal year, 
the Secretary shall provide at least 20 percent of the 
amount available to the discretionary fund under section 
47115 of this title to sponsors of small hub airports, 
nonhub airports, nonprimary commercial service airports, 
reliever airports or general aviation airports, for any pur-
pose for which amounts are made available under section 
48103. An airport in a State participating in the State 
block grant program under section 47128 may receive a 
grant under this section to the same extent the airport 
may receive a grant if the State were not participating 
in such program.’’. 
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SEC. 311. MILITARY AIRPORT PROGRAM. 
Section 47118 is amended— 
(1) in subsection (a), by striking ‘‘section 
47117(e)(1)(B)’’ 
and 
inserting 
‘‘sections 
47114(c)(1), (c)(2) and (d), 47115, or 47117(e)’’; 
(2) by striking subsection (c) and redesignating 
subsections (d) through (g) as (c) through (f) re-
spectively?]; 
(3) in subsection (c), as redesignated, by strik-
ing ‘‘section 47117(d)(1)(B) of this title’’ and in-
serting ‘‘sections 47114, 47115 or 47117 of this 
title for projects at airports designated under this 
section’’; 
(4) in subsection (d), as redesignated, by strik-
ing ‘‘section 47115, $10,000,000 for each of fiscal 
years 2004 and 2005, and $7,000,000 for each fis-
cal year thereafter,’’ and inserting ‘‘sections 47114, 
47115 or 47117, $7,000,000 for each fiscal year,’’; 
(5) in subsection (e), as redesignated— 
(A) by striking ‘‘(1) CONSTRUCTION.— 
From’’ and inserting ‘‘From’’; 
(B) 
by 
striking 
‘‘section 
47115, 
$10,000,000 for each of fiscal years 2004 and 
2005, and $7,000,000 for each fiscal year 
thereafter,’’ and inserting ‘‘sections 47114, 
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47115 or 47117, $7,000,000 for each fiscal 
year,’’; and 
(C) by striking paragraph (2); and 
(6) in subparagraph (f), as redesignated, by 
striking ‘‘one’’ and inserting ‘‘up to three’’. 
SEC. 312. SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR. 
Section 47133(b) is amended— 
(1) by striking ‘‘apply if’’ and inserting: 
‘‘apply—(1) if’’; 
(2) by striking ‘‘operator.’’ and inserting ‘‘oper-
ator; and’’; and 
(3) by adding at the end the following: 
‘‘(2) in the case of a privately owned airport, to 
the proceeds from the sale of the airport to a public 
sponsor if— 
‘‘(A) the sale is approved by the Secretary; 
‘‘(B) funding is provided under this title 
for the public sponsor’s acquisition; and 
‘‘(C) an amount equal to the remaining 
unamortized portion of the original grant, am-
ortized over a 20-year period, is repaid to the 
Secretary by the private owner for deposit in 
the Trust Fund for airport acquisitions. 
‘‘(3) This subsection shall apply to grants 
issued on or after October 1, 1996.’’. 
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SEC. 313. SUNSET OF AIRPORT SECURITY PROGRAM. 
Section 47137 is amended by adding at the end the 
following: 
‘‘(h) SUNSET.—This section shall not be in effect 
after September 30, 2008.’’. 
SEC. 314. SUNSET OF PILOT PROGRAM FOR PURCHASE OF 
AIRPORT DEVELOPMENT RIGHTS. 
Section 47138 is amended by adding at the end the 
following: 
‘‘(f) SUNSET.—This section shall not be in effect 
after September 30, 2007.’’. 
SEC. 315. EXTENSION OF GRANT AUTHORITY FOR COMPAT-
IBLE LAND USE PLANNING AND PROJECTS 
BY STATE AND LOCAL GOVERNMENTS. 
Section 47141(f) is amended by striking ‘‘September 
30, 2007.’’ and inserting ‘‘September 30, 2010.’’. 
SEC. 316. MIDWAY ISLAND AIRPORT. 
Section 186(d) of the Vision 100—Century of Avia-
tion Reauthorization Act (Public Law No. 108–176, 117 
Stat. 2490, 2518) is amended by striking ‘‘October 1, 
2007’’ and inserting ‘‘October 1, 2010’’. 
SEC. 317. PILOT PROGRAM FOR AIRPORT TAKEOVER OF 
AIR NAVIGATION FACILITIES. 
(a) IN GENERAL.—Chapter 445 is amended by add-
ing at the end the following new section: 
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‘‘§ 44518. Pilot program for airport takeover of ter-
minal area air navigation equipment 
‘‘(a) IN GENERAL.—Subject to the requirements of 
this section, the Administrator of the Federal Aviation Ad-
ministrator may carry out a pilot program under which 
the Administrator may transfer ownership, operating and 
maintenance responsibilities for airport terminal area air 
navigation equipment to sponsors of not more than 10 me-
dium or large hub airports. 
‘‘(b) TERMS AND CONDITIONS OF TRANSFER FOR 
AIRPORT SPONSORS.—As a condition of participating in 
this pilot program the sponsor shall agree that the sponsor 
will— 
‘‘(1) operate and maintain all of the air naviga-
tion equipment that is subject to this section at the 
airport in accordance with standards established by 
the Administrator; 
‘‘(2) permit the Administrator or a person des-
ignated by the Administrator to conduct inspections 
of the air navigation equipment under a schedule es-
tablished by the Administrator; and 
‘‘(3) acquire and maintain new air navigation 
equipment as needed to replace facilities that have 
to be replaced at the end of their useful life or to 
meet new standards established by the Adminis-
trator. 
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‘‘(c) TERMS AND CONDITIONS OF TRANSFER FOR 
THE ADMINISTRATOR.—When the Administrator approves 
a sponsor’s participation in this pilot program, the Admin-
istrator shall— 
‘‘(1) transfer, at no cost to the sponsor, the 
title and ownership of the air navigation equipment 
facilities approved for transfer under this program; 
and 
‘‘(2) transfer, at no cost to the sponsor, the 
government’s property interest in the land on which 
the air navigation facilities transferred under sub-
section (1) are located. 
‘‘(d) TREATMENT OF AIRPORT COSTS UNDER PILOT 
PROGRAM.—Upon transfer by the Administrator, any 
costs incurred by the airport for ownership and mainte-
nance of the equipment transferred under this section 
shall be considered a cost of providing airfield facilities 
and services under standards and guidelines issued by the 
Secretary under section 47129(b)(2) and may be recov-
ered in rates and charges assessed for use of the airfield. 
‘‘(e) SPECIAL PASSENGER FACILITY CHARGE AU-
THORITY.—Notwithstanding the maximum amount for a 
passenger 
facility 
charge 
provided 
under 
section 
40117(b)(1), a participating sponsor in the pilot program 
under this section is authorized to impose a passenger fa-
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cility charge of $7 provided that the sponsor meets the 
otherwise applicable requirements of section 40117. 
‘‘(f) DEFINITIONS.—In this section— 
‘‘(1) ‘large hub airport’ and ‘medium hub air-
port’ shall have the meaning set forth in section 
40102; 
‘‘(2) ‘sponsor’ shall have the same meaning as 
in section 47102; 
‘‘(3) ‘terminal area air navigation equipment’ 
means an air navigation facility under section 
40102, other than buildings used for air traffic con-
trol functions, that exists to provide approach and 
landing guidance to aircraft. 
‘‘(g) GUIDELINES.—The Administrator shall issue 
advisory guidelines on the implementation of the program. 
The guidelines shall not be subject to administrative rule-
making requirements under subchapter II of chapter 5 of 
title 5.’’. 
(b) CONFORMING AMENDMENT.—The analysis of 
chapter 445 is amended by inserting at the end: 
‘‘44518. Pilot program for airport takeover of terminal area air navigation 
equipment.’’. 
SEC. 318. ADS–B SUPPORT PILOT PROGRAM. 
(a) IN GENERAL.—Chapter 445 is amended by add-
ing at the end the following new section: 
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‘‘§ 44519. ADS–B support pilot program 
‘‘(a) IN GENERAL.—The Secretary may carry out a 
pilot program to support non-Federal acquisition of Na-
tional Airspace System (NAS) compliant Automatic De-
pendant Surveillance—Broadcast (ADS–B) ground sta-
tions if— 
‘‘(1) the Secretary determines that acquisition 
of the ground stations benefits the improvement of 
safety or capacity in the National Airspace System; 
‘‘(2) the ground stations provide the required 
transmit and receive data formats consistent with 
the National Airspace System architecture at the ap-
propriate service delivery point; and 
‘‘(3) the ground stations acquired under this 
program are supplemental to ground stations estab-
lished under programs administered by the Adminis-
trator of the Federal Aviation Administration. 
‘‘(b) PROJECT GRANTS.—(1) For purposes of car-
rying out this pilot program and notwithstanding the re-
quirements of section 47114(d), the Secretary may make 
a project grant out of funds apportioned under section 
47114(d)(2) to not more than ten eligible sponsors to ac-
quire and install ADS–B ground stations in order to serve 
any public-use airport. 
‘‘(2) The Secretary shall establish procurement pro-
cedures applicable to grants issued under this section. The 
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procedures shall permit the sponsor to carry out the 
project using Federal Aviation Administration contracts. 
The procedures established by the Secretary may provide 
for the direct reimbursement (including administrative 
costs) of the Administrator by the sponsor using grant 
funds under this section, for the ordering of such equip-
ment and its installation, or for the direct ordering of such 
equipment and its installation by the sponsor, using such 
grant funds, from the suppliers with which the Adminis-
trator has contracted. 
‘‘(c) MATCHING REQUIREMENT.—The amount of a 
grant to an eligible sponsor under subsection (b) may not 
exceed 90 percent of the costs of the acquisition and in-
stallation of the ground support equipment. 
‘‘(d) DEFINITIONS.—In this section— 
‘‘(1) ‘ADS–B ground station’ means electronic 
equipment that provides for ADS–B reception and 
broadcast services. 
‘‘(2) ‘eligible sponsor’ means a state, a metro-
politan planning organization in the area where the 
project is located, or any consortium of two or more 
state or local governments meeting the definition of 
a sponsor under section 47102 of this title.’’. 
(b) CONFORMING AMENDMENT.—The analysis of 
chapter 445 is amended by inserting at the end: 
‘‘44519. ADS–B support pilot program.’’. 
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SEC. 319. AIP ELIGIBILITY FOR METROPOLITAN WASH-
INGTON AIRPORTS AUTHORITY. 
Section 49108 is amended by striking ‘‘October 1, 
2008,’’ and inserting ‘‘October 1, 2010’’. 
SEC. 320. MISCELLANEOUS AMENDMENTS. 
(a) TECHNICAL CHANGES TO NATIONAL PLAN OF 
INTEGRATED
AIRPORT
SYSTEMS.—Section 47103 is 
amended— 
(1) in subsection (a), by striking ‘‘each airport 
to—’’ and inserting ‘‘the airport system to—’’; 
(2) in subsection (a)(1), by striking ‘‘system in 
the particular area;’’ and inserting ‘‘system, includ-
ing connection to the surface transportation net-
work; and’’; 
(3) in subsection (a)(2), by striking ‘‘aero-
nautics; and’’ and inserting ‘‘aeronautics.’’; 
(4) by striking subsection (a)(3); 
(5) by striking subsection (b)(2) and redesig-
nating (b)(3) as (b)(2); 
(6) in subsection (b)(2), as redesignated, by 
striking ‘‘operations, Short Takeoff and Landing/ 
Very Short Takeoff and Landing aircraft oper-
ations,’’ and inserting ‘‘operations’’; and 
(7) in subsection (d), by striking ‘‘status of 
the’’. 
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(b) CONFORMING CHANGE
TO PROJECT GRANT 
AGREEMENTS.—Section 47108(e)(3) is amended by strik-
ing ‘‘and the small airport fund’’. 
(c) UPDATE
VETERANS
PREFERENCE
DEFINI-
TION.—Section 47112(c) is amended— 
(1) in paragraph (1) by— 
(A) in subparagraph (B), by striking ‘‘sep-
arated from’’ and inserting ‘‘discharged or re-
leased from active duty in’’; and 
(B) inserting at the end the following: 
‘‘(C) ‘Afghanistan-Iraq war veteran’ means 
an individual who served on active duty, as de-
fined by section 101(21) of title 38, at any time 
in the armed forces for a period of more than 
180 consecutive days, any part of which oc-
curred during the period beginning on Sep-
tember 11, 2001, and ending on the date pre-
scribed by Presidential proclamation or by law 
as the last date of Operation Iraqi Freedom.’’; 
and 
(2) in paragraph (2), by striking ‘‘veterans 
and’’ and inserting ‘‘veterans, Afghanistan-Iraq war 
veterans, and’’. 
(d) CONSOLIDATION OF TERMINAL DEVELOPMENT 
PROVISIONS.—Section 47119 is amended— 
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(1) redesignating subsections (a), (b), (c) and 
(d) as subsections (b), (c), (d) and (e) respectively, 
and by inserting a new subsection (a) as follows: 
‘‘(a) IN GENERAL.—(1) The Secretary may approve 
a project for terminal development (including multimodal 
terminal development) in a nonrevenue-producing public- 
use area of a commercial service airport— 
‘‘(A) if the sponsor certifies that the airport, on 
the date the grant application is submitted to the 
Secretary, has— 
‘‘(i) all the safety equipment required for 
certification of the airport under section 44706 
of this title; 
‘‘(ii) all the security equipment required by 
regulation; and 
‘‘(iii) provided for access, to the area of the 
airport for passengers for boarding or exiting 
aircraft, to those passengers boarding or exiting 
aircraft, except air carrier aircraft; 
‘‘(B) if the cost is directly related to moving 
passengers and baggage in air commerce within the 
airport, including vehicles for moving passengers be-
tween terminal facilities and between terminal facili-
ties and aircraft; and 
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‘‘(C) under terms necessary to protect the inter-
ests of the Government. 
‘‘(2) In making a decision under paragraph (1) of 
this subsection, the Secretary may approve as allowable 
costs the expenses of terminal development in a revenue- 
producing area and construction, reconstruction, repair, 
and improvement in a nonrevenue-producing parking lot 
if— 
‘‘(A) except as provided in section 47108(e)(3), 
the airport does not have more than .05 percent of 
the total annual passenger boardings in the United 
States; and 
‘‘(B) the sponsor certifies that any needed air-
port development project affecting safety, security, 
or capacity will not be deferred because of the Sec-
retary’s approval.’’; 
(2) in subsection (b), as redesignated— 
(A) in paragraph (4)(A), by striking ‘‘sec-
tion 47110(d)’’ and inserting ‘‘subsection (a)’’; 
and 
(B) in paragraph (5), by striking ‘‘sub-
section (b)(1) and (2)’’ and inserting ‘‘sub-
section (c)(1) and (2)’’; and 
(3) by inserting at the end the following new 
subsections: 
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‘‘(f) LIMITATION ON DISCRETIONARY FUNDS.—The 
Secretary may distribute not more than $20,000,000 from 
the discretionary fund established under section 47115 of 
this title for terminal development projects at a nonhub 
airport or a small hub primary airport that is eligible to 
receive discretionary funds under section 47108(e)(3) of 
this title.’’. 
(e) ANNUAL REPORT.—Section 47131(a) is amend-
ed— 
(1) by striking ‘‘April 1’’ and inserting ‘‘June 
1’’; and 
(2) by revising paragraphs (1), (2), (3) and (4) 
to read as follows: 
‘‘(1) a summary of airport development and 
planning completed; 
‘‘(2) a summary of individual grants issued; 
‘‘(3) an accounting of discretionary and appor-
tioned funds allocated; 
‘‘(4) the allocation of appropriations; and’’. 
(f) CORRECTION
TO EMISSION CREDITS PROVI-
SION.—Section 47139 is amended— 
(1) 
in 
subsection 
(a), 
by 
striking 
‘‘47102(3)(F),’’; and 
(2) in subsection (b)— 
(A) by striking ‘‘47102(3)(F),’’; 
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(B) by striking ‘‘47102(3)(L), or 47140’’ 
and inserting ‘‘or 47102(3)(L),’’; 
(C) by striking ‘‘47103(3)(F),’’; 
(D) by striking ‘‘47102(3)(L), or 47140,’’ 
and inserting ‘‘or ‘‘47102(3)(L),’’. 
(g) REPEAL OF AIRPORT GROUND SUPPORT EQUIP-
MENT EMISSIONS RETROFIT PILOT PROGRAM.—Section 
47140 is repealed. 
(h) CORRECTION TO SURPLUS PROPERTY AUTHOR-
ITY.—Section 47151(e) is amended by striking ‘‘(other 
than real property that is subject to section 2687 of title 
10, section 201 of the Defense Authorization Amendments 
and Base Closure and Realignment Act (10 U.S.C. 2687 
note), or section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (10 U.S.C. 2687 note)’’. 
(i) AIRPORT CAPACITY BENCHMARK REPORTS; DEFI-
NITION
OF JOINT USE AIRPORT.—Section 47175 is 
amended— 
(1) in paragraph (2), by striking ‘‘Airport Ca-
pacity Benchmark Report 2001.’’ and inserting 
‘‘2001 and 2004 Airport Capacity Benchmark Re-
ports or of the most recent Benchmark report.’’; and 
(2) by adding at the end: 
‘‘(7) JOINT USE AIRPORT.—The term ‘joint use 
airport’ means an airport owned by the United 
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States Department of Defense, at which both mili-
tary and civilian aircraft make shared use of the air-
field.’’. 
(j) CONFORMING AMENDMENT TO CIVIL PENALTY 
ASSESSMENT
AUTHORITY.—Section 
46301(d)(2) 
is 
amended by striking ‘‘46318,’’ and inserting ‘‘46318, 
46319’’. 
(k) FUNDING FOR ADMINISTRATIVE EXPENSES FOR 
AIRPORT PROGRAMS.—(1) Section 48105 is amended to 
read as follows: 
‘‘§ 48105. Airport programs administrative expenses 
‘‘Of the amount newly made available, the following 
shall be available for administrative expenses relating to 
the Airport Improvement Program, passenger facility fee 
approval and oversight, national airport system planning, 
airport standards development and enforcement, airport 
certification, airport-related environmental activities (in-
cluding legal services), and other airport-related activities 
(including airport technology research), to remain avail-
able until expended— 
‘‘(1) for fiscal year 2008, $80,676,000; 
‘‘(2) for fiscal year 2009, $85,000,000; and 
‘‘(3) for fiscal year 2010, $89,000,000.’’. 
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(2) CONFORMING AMENDMENTS.—The analysis 
of chapter 481 is amended by revising the title for 
section 48105 to read as follows: 
‘‘48105. Airport programs administrative expenses.’’. 
TITLE IV—MANAGEMENT AND 
ORGANIZATION REFORMS 
SEC. 
401. 
AIR 
TRANSPORTATION 
SYSTEM 
ADVISORY 
BOARD. 
Section 106 is amended by striking subsection (p) 
and inserting in lieu thereof the following: 
‘‘(p) AIR
TRANSPORTATION
SYSTEM
ADVISORY 
BOARD.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish an Advisory Board which shall be known as 
the Air Transportation System Advisory Board (in 
this subsection referred to as the ‘Board’). 
‘‘(2) MEMBERSHIP.—The Board shall be com-
prised of 13 members, who shall consist of— 
‘‘(A) the Administrator of the Federal 
Aviation Administration and a representative 
from the Department of Defense; 
‘‘(B) three members who shall have a fidu-
ciary responsibility to represent the public in-
terest; and 
‘‘(C) eight members representing aviation 
interests: 
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‘‘(i) one representative of the airport 
community; 
‘‘(ii) one representative each of major 
air carriers (Carrier Group I), national air 
carriers (Carrier Group II), and the re-
gional air carriers (Carrier Group III), as 
previously defined by the Secretary of 
Transportation under section 4, part 241 
of title 49 of the Code of Federal Regula-
tions; 
‘‘(iii) one representative of the cargo 
airlines; 
‘‘(iv) one representative of the general 
aviation community; 
‘‘(v) one representative of the business 
aviation community; and 
‘‘(vi) one representative of the avia-
tion manufacturing community. 
‘‘(3) APPOINTMENT AND QUALIFICATIONS.— 
‘‘(A) Members of the Board appointed 
under paragraphs (2)(B) and (2)(C) shall be 
appointed by the Secretary and shall not be 
considered to be employees of the Federal Gov-
ernment. 
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