To amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, to amend title 49, United States Code, to extend the airport improvement program, and for other purposes.

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Airport and Airway Extension Act of 
2011, Part IV''.
SEC. 2. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST FUND.
    (a) Fuel Taxes.--Subparagraph (B) of section 4081(d)(2) of the 
Internal Revenue Code of 1986 is amended by striking ``July 22, 2011'' 
and inserting ``September 16, 2011''.
    (b) Ticket Taxes.--
        (1) Persons.--Clause (ii) of section 4261(j)(1)(A) of the 
    Internal Revenue Code of 1986 is amended by striking ``July 22, 
    2011'' and inserting ``September 16, 2011''.
        (2) Property.--Clause (ii) of section 4271(d)(1)(A) of such 
    Code is amended by striking ``July 22, 2011'' and inserting 
    ``September 16, 2011''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on July 23, 2011.
SEC. 3. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
AUTHORITY.
    (a) In General.--Paragraph (1) of section 9502(d) of the Internal 
Revenue Code of 1986 is amended--
        (1) by striking ``July 23, 2011'' and inserting ``September 17, 
    2011''; and
        (2) by inserting ``or the Airport and Airway Extension Act of 
    2011, Part IV'' before the semicolon at the end of subparagraph 
    (A).
    (b) Conforming Amendment.--Paragraph (2) of section 9502(e) of such 
Code is amended by striking ``July 23, 2011'' and inserting ``September 
17, 2011''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on July 23, 2011.
SEC. 4. EXTENSION OF AIRPORT IMPROVEMENT PROGRAM.
    (a) Authorization of Appropriations.--
        (1) In general.--Section 48103 of title 49, United States Code, 
    is amended by striking paragraph (8) and inserting the following:
        ``(8) $3,380,178,082 for the period beginning on October 1, 
    2010, and ending on September 16, 2011.''.
        (2) Obligation of amounts.--Subject to limitations specified in 
    advance in appropriation Acts, sums made available pursuant to the 
    amendment made by paragraph (1) may be obligated at any time 
    through September 30, 2011, and shall remain available until 
    expended.
    (b) Project Grant Authority.--Section 47104(c) of such title is 
amended by striking ``July 22, 2011,'' and inserting ``September 16, 
2011,''.
SEC. 5. EXTENSION OF EXPIRING AUTHORITIES.
    (a) Section 40117(l)(7) of title 49, United States Code, is amended 
by striking ``July 23, 2011.'' and inserting ``September 17, 2011.''.
    (b) Section 44302(f)(1) of such title is amended--
        (1) by striking ``July 22, 2011,'' and inserting ``September 
    16, 2011,''; and
        (2) by striking ``October 31, 2011,'' and inserting ``December 
    31, 2011,''.
    (c) Section 44303(b) of such title is amended by striking ``October 
31, 2011,'' and inserting ``December 31, 2011,''.
    (d) Section 47107(s)(3) of such title is amended by striking ``July 
23, 2011.'' and inserting ``September 17, 2011.''.
    (e) Section 47115(j) of such title is amended by striking ``July 
23, 2011,'' and inserting ``September 17, 2011,''.
    (f) Section 47141(f) of such title is amended by striking ``July 
22, 2011.'' and inserting ``September 16, 2011.''.
    (g) Section 49108 of such title is amended by striking ``July 22, 
2011,'' and inserting ``September 16, 2011,''.
    (h) Section 161 of the Vision 100--Century of Aviation 
Reauthorization Act (49 U.S.C. 47109 note) is amended by striking 
``July 23, 2011,'' and inserting ``September 17, 2011,''.
    (i) Section 186(d) of such Act (117 Stat. 2518) is amended by 
striking ``July 23, 2011,'' and inserting ``September 17, 2011,''.
    (j) The amendments made by this section shall take effect on July 
23, 2011.
SEC. 6. ESSENTIAL AIR SERVICE REFORM.
    (a) In General.--Section 41731(a)(1) of title 49, United States 
Code, is amended--
        (1) in subparagraph (A) by redesignating clauses (i) through 
    (iii) as subclauses (I) through (III), respectively;
        (2) by redesignating subparagraphs (A) and (B) as clauses (i) 
    and (ii), respectively;
        (3) in clause (i)(I) (as so redesignated) by inserting ``(A)'' 
    before ``(i)(I)'';
        (4) in subparagraph (A)(ii) (as so redesignated)--
            (A) by striking ``determined'' and inserting ``was 
        determined'';
            (B) by striking ``Secretary'' and inserting ``Secretary of 
        Transportation''; and
            (C) by striking the period at the end and inserting a 
        semicolon; and
        (5) by adding at the end the following:
            ``(B) is located not less than 90 miles from the nearest 
        medium or large hub airport; and
            ``(C) had an average subsidy per passenger of less than 
        $1,000 during the most recent fiscal year, as determined by the 
        Secretary.''.
    (b) Limitation on Authority To Decide a Place Not an Eligible 
Place.--Section 41731(b) of such title is amended--
        (1) by striking ``Secretary of Transportation'' and inserting 
    ``Secretary''; and
        (2) by striking ``on the basis of a passenger subsidy at that 
    place or on another basis'' and inserting ``on any basis''.
    (c) Exceptions and Waivers.--Section 41731 of such title is amended 
by adding at the end the following:
    ``(c) Exceptions for Locations in Alaska.--Subsections (a)(1)(B) 
and (a)(1)(C) shall not apply with respect to a location in the State 
of Alaska.
    ``(d) Waivers.--The Secretary may waive subsection (a)(1)(B) with 
respect to a location if the Secretary determines that the geographic 
characteristics of the location result in undue difficulty in accessing 
the nearest medium or large hub airport.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: Airport and Airway Extension Act of 2011, Part IV - (Sec. 2) Amends the Internal Revenue Code to extend through September 16, 2011, increased excise taxes on aviation fuels, the excise tax on air transportation of persons and property, and the expenditure authority for the Airport and Airway Trust Fund.

(Sec. 4) Increases the authorization of appropriations for the period beginning on October 1, 2010, and ending on September 16, 2011, for airport planning and development and noise compatibility planning projects (known as airport improvement projects [AIPs]). Extends through September 16, 2011, the authority of the Secretary of Transportation to make new AIP grants.

(Sec. 5) Extends until September 17, 2011: (1) the pilot program for passenger facility fee authorizations at non-hub airports, and (2) disclosure requirements for large and medium hub airports applying for AIP grants.

Directs the Secretary to extend through September 16, 2011, the termination date of insurance coverage for domestic or foreign-flag aircraft. Grants the Secretary discretionary authority to further extend such coverage through December 31, 2011. Extends through December 31, 2011, the authority of the Secretary to limit air carrier liability for claims arising out of acts of terrorism. 

Extends through September 16, 2011: (1) grant eligibility for airports located in the Marshall Islands, Micronesia, and Palau; (2) grants to state and local governments for land use compatibility AIPs; and (3) authority for approving an application of the Metropolitan Washington Airports Authority for an airport development grant or for permission to impose a passenger facility fee.

Amends the Vision 100 - Century of Aviation Reauthorization Act to extend through September 16, 2011: (1) the temporary increase to 95% of the federal government's share of certain AIP costs, and (2) funding for airport development at Midway Island Airport.

(Sec. 6) Revises essential air service (EAS) program eligibility requirements to limit such service to airports (except those in Alaska) that: (1) are located at least 90 miles from the nearest medium or large hub airport, and (2) had an average subisdy per passenger of less than $1,000. Authorizes the Secretary of Transportation to waive such requirements for a particular location if its geographic characteristics result in undue difficulty in accessing the nearest medium or large hub airport.