An Act to provide for the expansion and improvement of the Nation's airport and airway system, for the imposition of airport and airway user charges, and for other purposes
PL 91-258 (H.R.14465), enacted 05/21/1970

84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
219 
Public Law 91-258 
M
a
y 21, 1970 
To provide for the expansion and improvement of tlie Xatioii's airport and 
[H. R. 14465] 
airway system, for the imposition of airport and airway user charges, and 
for other i)urposes. 
Aviation facili-
ties, expansion 
and improvement; 
revenue. 
72 Stat. 731. 
He it enacted hy the Senate and House of Representatiees 
of the 
United States of Amenca in Congress assemhled^ 
TITLE I—AIRPORT AND AIRWAY DEVEL-
OPMENT ACT OF 1970 
PART I—SHORT TITLE, ETC. 
SECTION 1. SHORT TITLE. 
This title may be cited as the ''Airport and Airway Development 
citation o
f 
Act of 1970". 
SEC. 2. DECLARATION OF POLICY. 
The Congress hereby finds and declares— 
That the Nation's airport and airway system is inadequate to meet 
the current and projected growth in aviation. 
That substantial expansion and improvement of the airport and air-
way system is required to meet the demands of interstate commerce, 
the postal service, and the national defense. 
That the annual obligational authority during the period July 1, 
1970, through June 30, 1980, for the acquisition, establishment, and 
improvement of air navigational facilities under the Federal Aviation 
Act of 1958 (49 U.S.C. 1301 et seq.), should be no less than $250,000,000. 
That the obligational authority during the period July 1, 1970, 
through June 30,1980, for airport assistance under this title should be 
$2,500,000,000. 
SEC. 3. NATIONAL TRANSPORTATION POLICY. 
(a) FORMULATION OF POLICY.—^Within one year after the date of 
enactment of this title, the Secretary of Transportation shall formulate 
and recommend to the Congress for approval a national transportation 
policy. In the formulation of such policy, the Secretary shall take into 
consideration, among other things— 
(1) the coordinated development and improvement of all modes 
of transportation, together with the priority which shall be 
assigned to the development and improvement of each mode of 
transportation; and 
(2) the coordination of recommendations made under this title 
relating to airport and airway development with all other recom-
mendations to the Congress for the development and improvement 
of our national transportation system. 
(b) ANNUAL REPORT.—The Secretary shall submit an annual report 
Report to 
to the Congress on the implementation of the national transportation 
policy formulated under subsection (a) of this section. Such report 
shall include the specific actions taken by the Secretary with respect to 
(1) the coordination of the development and improvement of all 
modes of transportation, (2) the establishment of priorities with 
respect to the development and improvement of each mode of transpor-
tation, and (3) the coordination of recommendations under this title 
relating to airport and airway development with all other recom-
mendations to the Congress for the development and improvement of 
our national transportation system. 
Congress. 
220 
PUBLIC LAW 91-258-lVIAY 21, 1970 
[84 STAT. 
SEC. 4. COST ALLOCATION STUDY. 
The Secretary of Transportation shall conduct a study respecting 
the appropriate method for allocating the cost of the airport and air-
way system among the various users, and shall identify the cost to the 
Federal Government that should appropriately be charged to the sys-
tem and the value to be assigned to any general public benefit, including 
military, which may be determined to exist. In conducting the study 
the Secretary shall consult fully with and give careful consideration to 
(!ll^°«V° 
^^^^ views of the users of the system. The Secretary shall report the 
results of the study to Congress within two years from the date of 
enactment of this title. 
Congress. 
PART II—AIRPORT AND AIRWAY DEVELOPMENT 
SEC. 11. DEFINITIONS. 
As used in this part— 
(1) "Airport"' means any area of land or water which is used, or 
intended for use, for the landing and takeoff of aircraft, and any 
appurtenant areas which are used, or intended for use, for airport 
buildings or other airport facilities or rights-of-way, together with all 
airport buildings and facilities located thereon. 
(2) "Airport development" means (A) any work involved in con-
structing, improving, or repairing a public air[X)rt or portion thereof, 
including the removal, lowering, relocation, and marking and lighting 
of airport hazards, and including navigation aids used by aircraft 
landing at, or taking off from, a public airport, and including safety 
equipment required by rule or regulation for certification of the airport 
Post, p. 234. 
under section 612 of the Federal Aviation Act of 1958, and (B) any 
acquisition of land or of any interest therein, or of any easement 
through or other interest in airspace, including land for future airport 
development, which is necessary to permit any such work or to remove 
or mitigate or prevent or limit the establishment of, airport hazards. 
(3) "Airport hazard" means any structure or object of natural 
growth located on or in the vicinity of a public airport, or any use of 
land near such airport, which obstructs the airspace required for the 
flight of aircraft in landing or taking off at such airport or is otherwise 
hazardous to such landing or taking off of aircraft. 
(4) "Airport master planning'' means the development for planning 
purposes of information and guidance to determine the extent, type, 
and nature of development needed at a specific airport. It may include 
the preparation of an airport layout plan and feasibility studies, and 
the conduct of such other studies, surveys, and planning actions as 
may be necessary to determine the short-, intermediate-, and long-range 
aeronautical demands required to be met by a particular airport as a 
part of a system of airports. 
(5) "Airport system planning'' means the development for plan-
ning purposes of information and guidance to determine the extent, 
type, nature, location, and timing of airport development needed in a 
specific area to establish a viable and balanced system of public air-
ports. It includes identification of the specific aeronautical role of 
each airport within the system, development of estimates of system-
wide development costs, and the conduct of such studies, surveys, and 
other planning actions as may be necessary to determine the short-, 
intermediate-, and long-range aeronautical demands required to be 
met by a particular system of airports. 
(6) "Landing area" means that area used or intended to be used for 
the landing, takeoff, or surface maneuvering of aircraft. 
(7) "Government aircraft" means aircraft owned and operated by 
the United States. 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
221 
(8) "Planning agency" means any planning agency designated by 
the Secretary which is authorized by the laws of the State or States 
(including the Commonwealth of Puerto Rico, the Virgin Islands, and 
Guam) or political subdivisions concerned to engage in areawide plan-
ning for the areas in which assistance under this part is to be used. 
(9) ^'Project" means a project for the accomplishment of airport 
development, airport master planning, or airport sjstem planning. 
(10) "Project costs" means any costs involved m accomplishing a 
project. 
(11) "Public agency" means a State, the Commonwealth of Puerto 
Rico, the Virgin Islands, or Guam or any agency of any of them; a 
municipality or other political subdivision; or a tax-supported organi-
zation ; or an Indian tribe or pueblo. 
(12) "Public airport" means any airport which is used or to be used 
for public purposes, under the control of a public agency, the landing 
area of which is publicly owned. 
(13) "Secretary" means the Secretary of Transportation. 
(14) "Sponsor means any public agency which, either individually 
or jointly with one or more other public agencies, submits to the 
Secretary, in accordance with this part, an application for financial 
assistance. 
(15) "State" means a State of the United States or the District of 
Columbia. 
(16) "Terminal area" means that area used or intended to be used 
for such facilities as terminal and cargo building's, gates, hangars, 
shops, and other service buildings; automobile parking, airport 
motels, and restaurants, and garages and automobile service facilities 
used in connection with the airport; and entrance and service roads 
used by the public within the boundaries of the airport. 
(17) "United States share" means that portion of the project costs 
of projects for airport development approved pursuant to section 
16 of this part which is to be paid from funds made available for the 
purposes of this part. 
SEC. 12. NATIONAL AIRPORT SYSTEM PLAN. 
(a) FORMULATION or PLAN.—The Secretary is directed to prepare 
and publish, within two years after the date of enactment of this 
part, and thereafter to review and revise as necessary, a national 
airport system plan for the development of public airports in the 
United States. The plan shall set forth, for at least a ten-year period, 
the type and estimated cost of airport development considered by the 
Secretary to be necessary to provide a system of i)ublic airports ade-
quate to anticipate and meet the needs of civil aeronautics, to meet 
requirements in support of the national defense as determined by the 
Secretary of Defense, and to meet the special needs of the postal 
service. The plan shall include all types of airport development eligi-
ble for Federal aid under section 14 of this part, and terminal 
area development considered necessary to provide for the efficient 
accommodation of persons and goods at public airports, and the 
conduct of functions in operational sui^port of the airport. Airport 
development identified by the plan shall not be limited to the require-
ments of any classes or categories of public airports. In preparing 
the plan, the Secretary shall consider the needs of all segments of 
civil aviation. 
(b) CoNsmERATiON OF OTIIER 
MODES OF TRANSPORTATION.—In 
formulating and revising the plan, the Secretary shall take into con-
sideration, among other things, the relationship pf each airport to the 
rest of the transportation system in the particular area, to the fore-
casted technological developments in aeronautics, and to develop-
ments forecasted in other modes of intercity transportation. 
222 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
(c) FEDERAL, STATE, AND OTHER AGENCIES.—In developing the 
national airport system plan, the Secretary shall to the extent feasible 
consnlt with the Civil Aeronautics Board, the Post Office Department, 
the Department of the Interior regarding conservation and natural re-
source values, and other Federal agencies, as appropriate; with plan-
ning agencies, and airport operators; and with air carriers, aircraft 
manufacturers, and others in the aviation industry. The Secretary 
shall provide technical guidance to agencies engaged in the conduct 
of airport system planning and airport master planning to insure that 
the national air})oi't system plan reflects the product of interstate, vState, 
and local airport planning. 
(d) CooPi:RATioN W I T H FEDERAL COMMUNICATIONS COMMISSION.— 
The Secretary shall, to the extent possible, consult, and give con-
sideration to the views and recommendations of the Federal Commu-
nications Commission, and shall make all reasonable efforts to cooper-
ate with that Commission for the purpose of eliminating, preventing, 
or minimizing airport hazards caused by the construction or operation 
of any radio or television station. In carrying out this section, the 
Secretary may make any necessary surveys, studies, examinations, and 
investigations. 
(e) CONSULTATION W I T H DEPARTMENT or DEFENSE.—The Depart-
ment of Defense shall make military airports and airport facilities 
available for civil use to the extent feasible. In advising the Secretary 
of national defense requirements pui-suant to subsection (a) of this 
section, the Secretary of Defense shall indicate the extent to which 
military airports and airport facilities will be available for civil use. 
(f) 
CONSULTATION CONCERNING ENVIRONMENTAL CHANGES.—In 
carrying out this section, the Secretary shall consult with and consider 
the views and recommendations of the Secretary of the Interior, the 
Secretary of Health, Education, and Welfare, the Secretary of Agri-
culture, and the National Council on Environmental Quality. The rec-
ommendations of the Secretary of the Interior, the Secretary of Health, 
Education, and Welfare, the Secretary of Agriculture, and the 
National Council on Environmental Quality, with regard to the preser-
vation of environmental quality, shall, to the extent that the Secretary 
of Transportation detemiines to be feasible, be incorporated in the na-
tional airport system plan. 
(g) 
COOPERATION AVITH THE FEDERAL POWER COMMISSION.—The 
Secretary shall, to the extent possible, consult, and give consideration to 
the views and recommendations of the Federal Power Commission, and 
.shall make all reasonable efforts to cooperate with that Commission for 
the purpose of eliminating, preventing, or minimizing airport hazards 
caused by the construction or operation of power facilities. In carrying 
out this section, the Secretary may make any necessary surveys, studies, 
examinations, and investigations. 
(h) AVIATION ADVISORY COMMISSION.— 
me^mberihl*""^"*' 
(^^ TlicTe Is establlslied an Aviation Advisory Commission (here-
'"Xp^o'intments 
aftcT lu thls subsectiou referred to as the "Commission"). The Com-
by President. 
mlssioii sliall bc composcd of nine members appointed by the President 
from private life as follows: 
(A) One person to serve as Chairman of the Commission who is 
specially qualified to serve as Chairman by virtue of his education, 
training, or experience. 
(B) Eight persons who are specially qualified to serve on such 
Commission from among representatives of the commercial air 
carriers, general aviation, aircraft manufacturers, airport spon-
sors, State aeronautics agencies, and three major organizations 
concerned with conservation or regional planning. 
Not more than five members of the Commission shall be from the same 
political party. Any vacancy in the Commission shall not affect its 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
223 
powers but shall be filled in the same manner in which the original 
appointment was made, and subject to the same limitations with respect 
to party affiliations. Five members shall constitute a quorum. 
(2) It shall be the duty of the Commission— 
°"'*^"-
(A) to formulate recommendations concerning the long-range 
needs of aviation, including but not limited to, future airport 
requirements and the national airport system plan described in 
subsection (a) of this section, and recommendations concerning 
surrounding land uses, ground access, airways, air service, and 
aircraft compatible with such plan; 
(B) to facilitate consideration of other modes of transportation 
and cooperation with other agencies and community and industry 
groups as provided in subsections (b) through (g) of this section. 
In carrying out its duties under this subsection, the Commission shall 
establish such task forces as are necessary to include technical repre-
sentation from the organizations referred to in this subsection, from 
Federal agencies, and from such other organizations and agencies as 
th.e Commission considers appropriate. 
(?)) Each member of the Commission shall, while serving on the compensation; 
• 
• • 
• 
• 
travel ex-
business of the Commission, be entitled to receive compensation at a penses. 
rate fixed by the President, but not exceeding $100 per day, including 
travel time; and, while so serving away from his home or regular 
place of business, may be allowed travel expenses, including per diem 
in lieu of subsistence, as authorized by section 570.3 of title 5 of the 
ITnited States Code for persons in the Government service employed 83^513^*190^^' 
intermittently. 
(4) (A) The Commission is authorized, without regard to the pro-
visions of title 5, United States Code, governing appointments in the 
competitive service, and without regard to the provisions of chapter 
51 and subchapter I I I of chapter 53 of such title relating to classifica- 
f^ul^c'sioi- '^^^' 
tion and General Schedule pay rates, to appoint and 
fix 
the compensa- siis, 5331-5338. 
tion of such personnel as may be necessary to carry out the functions of 
the Commission, but no individual so appointed shall receive compen-
sation in excess of the rate authorized for GS-18 by section 5332 of 
such title. 
Ante, 
p. 198-1. 
(B) The Commission is authorized to obtain the services of experts 
and consultants in accordance with the provisions of section 3109 of 
title 5, ITnited States Code, but at rates for individuals not to exceed 
^° ^*^'- '*^^-
$100 per diem. 
(C) Administrative services shall be provided the Commission by 
the General Services Administration on a reimbursable basis. 
(D) The Commission is authorized to request from any department, 
agency, or independent instrumentality of the Government any infor-
mation and assistance it deems necessary to carry out its functions 
under this subsection; and each such department, agency, and instru-
mentality is authorized to cooperate with the Commission and, to the 
extent i>ermitted by law, to furnish such information and assistance to 
the Commission upon request made by the Chairman. 
(5) The Commission shall submit to the President and to the Con- 
Report to 
gress, or or before January 1,1972, a final report containing the recom- congrlTs'. ^"'^ 
mendations formulated by it under this subsection. The Commission 
Termination. 
shall cease to exist 60 days after the date of the submission of its final 
rei)ort. 
(6) There are authorized to be approj^riated from the Airport and 
Appropriation. 
Airway Trust Fund such sums, not to exceed $2,000,000, as may be 
necessary to carry out the provisions of this subsection. 
224 
PUBLIC LAW 91.258-MAY 21, 1970 
[84 STAT. 
SEC. 13. PLANNING GRANTS. 
(a) AUTHORIZATION TO MAKE GRANTS.—In order to promote the 
effective location and development of airports and the development of 
an adequate national airport system plan, the Secretary may make 
grants of funds to planning agencies for airport system planning, and 
to public agencies for airport master planning. 
(b) AMOUNT AND APPORTIONMENT OF GRANTS.—The award of grants 
under subsection (a) of this section is subject to the following 
limitations: 
(1) The total funds obligated for grants under this section may not 
exceed $75,000,000 and the amount obligated in any one fiscal year may 
not exceed $15,000,000. 
(2) No grant under this section may exceed two-thirds of the cost 
incurred in the accomplishment of the project. 
(3) No more than 7.5 per centum of the funds made available under 
this section in any fiscal year may be allocated for projects within a 
single State, the Commonwealth of Puerto Rico, the Virgin Islands, 
or Guam. Grants for projects encompassing an area located in two or 
more States shall be charged to each State in the proportion which 
the number of square miles the project encompasses in each State 
bears to the square miles encompassed by the entire project. 
(c) 
REGULATIONS; COORDINATION W I T H SECRETARY OF HOUSING AND 
URBAN DEVELOPMENT.—The Secretary may prescribe such regulations 
as he deems necessary governing the award and administration of 
grants authorized by this section. The Secretary and the Secretary of 
Housing and Urban Development shall develop jointly procedures 
designed to preclude duplication of their respective planning assist-
ance activities and to ensure that such activities are effectively 
coordinated. 
SEC. 14. AIRPORT AND AIRWAY DEVELOPMENT PROGRAM. 
'^'•^"*^- 
(a) GENERAL AUTHORITY.—In order to bring about, in conformity 
with the national airport system plan, the establishment of a nation-
wide system of public airports adequate to meet the present and future 
needs of civil aeronautics, the Secretary is authorized to make grants 
for airport development by grant agreements with sponsors in aggre-
gate amounts not less than the following: 
(1) For the purpose of developing in the several States, the Com-
monwealth of Puerto Rico, Guam, and the Virgin Islands, airports 
served by air carriers certificated b}^ the Civil Aeronautics Board, and 
airports the primary purpose of which is to serve general aviation and 
to relieve congestion at airports having a high density of traffic serving 
other segments of aviation, $250,000,000 for each of the fiscal years 
1971 through 1975. 
(2) For the purpose of developing in the several States, the Com-
monwealth of Puerto Rico, Guam, and the Virgin Islands, airports 
serving segments of aviation other than air carriers certificated by the 
Civil Aeronautics Board, $30,000,000 for each of the fiscal years 1971 
through 1975. 
(b) OBLIGATIONAL AUTHORITY.—To facilitate orderly long-term 
planning by sponsors, the Secretary is authorized, effective on the date 
of enactment of this title, to incur obligations to make grants for air-
port development from funds made available under this part for the 
fiscal year ending June 30,1971, and the succeeding four fiscal years in 
a total amount not to exceed $840,000,000. No obligation shall be 
incurred under this subsection for a period of more than three fiscal 
years and no such obligation shall extend beyond June 30, 1975. The 
Secretary shall not incur more than one obligation under this subsec-
tion with respect to any single project for airport development. Obli-
gations incurred under this subsection shall not be liquidated in an 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
225 
aggregate amount exceeding $280,000,000 prior to June 30, 1971, an 
aggregate amount exceeding $560,000,000 prior to June 30, 1972, and 
an aggregate amount exceeding $840,000,000 prior to June 30,1973. 
(c7 AIRWAY FACILITIES.—For the purpose of acquiring, establishing, 
and improving air navigation facilities under section 307(b) of the 
Federal Aviation Act of 1958, the Secretary is authorized, within the 
49 Jlc 1348. 
limits established in appropriations Acts, to obligate for exi)enditure 
not less than $250,000,000 for each of the fiscal years 1971 through 1975. 
(d) OTHER EXPENSES.—The balance of the moneys available in the 
trust fund shall be allocated for the necessary administrative expenses 
incident to the administration of programs for which funds are to be 
allocated as set forth in subsections (a) and (b) of this section, and for 
the maintenance and operation of air navigation facilities and the con-
duct of other functions under section 307(b) of the Federal Aviation 
Act of 1958, not otherwise provided for in subsection (c) of this section, 
and for research and development activities under section 312(c) (as it 
relates to safety in air navigation) of the Federal Aviation Act of 1958. 
^9 use 1353. 
The initial $50,000,000 of any sums appropriated to the trust fund pur-
suant to subsection (d) of section 208 of the Airport and Airway Reve-
nue Act of 1970 shall be allocated to such research and development 
^°®*' P- ^^°-
activities. 
SEC. 15. DISTRIBUTION OF FUNDS; STATE APPORTIONMENT. 
(a) 
APPORTIONMENT OF FUNDS.— 
(1) As soon as possible after July 1 of each fiscal year for M'hich any 
amount is authorized to be obligated for the purposes of paragraph (1) 
of section 14 (a^ of this part, the amount made available for that year 
shall be apportioned by the Secretary as follows: 
(A) One-third to be distributed as follows: 
(i) 97 per centum of such one-third for the several States, 
one-half in the proportion which the population of each State 
bears to the total population of all the States, and one-half in 
the proportion which the area of each State bears to the total 
area of all the States. 
(ii) 3 per centum of such one-third for Hawaii, the Com-
monwealth of Puerto Rico, Guam, and the Virgin Islands, to 
be distributed in shares of 35 per centum, 35 per centum, 15 
per centum, and 15 per centum, respectively. 
(B) One-third to be distributed to sponsors of airports served by 
air carriers certificated by the Civil Aeronautics Board in the same 
ratio as the number of passengers enplaned at each airport of the 
sponsor bears to the total number of passengers enplaned at all 
such airports. 
(C) One-third to be distributed at the discretion of the 
Secretary. 
(2) As soon as possible after July 1 of each fiscal year for which any 
amount is authorized to be obligated for the purposes of paragraph (2) 
of section 14(a) of this part, the amount made available for that year 
shall be apportioned by the Secretary as follows: 
(A) Seventy-three and one-half per centum for the several 
States, one-half in the proportion which the population of each 
Stat© bears to the total population of all the States, and one-half 
in the proportion which the area of each State bears to the total 
area of all the States. 
(B) One and one-half per centum for Hawaii, the Common-
wealth of Puerto Rico, Guam, and the Virgin Islands, to be dis-
tributed in shares of 35 per centum, 35 per centum, 15 per centum, 
and 15 per centum, respectively. 
(C) Twenty-five per centum to be distributed at the discretion 
of the Secretary, 
226 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
(3) Each amount apportioned to a State under paragraph (1) (A) (i) 
or (2) (A) of this subsection shall, during the tiscal year for which it 
was first authorized to be obligated and the fiscal year immediately 
following, be available only for approved airport development projects 
located in that State, or sponsored by that State or some public agency 
thereof but located in an adjoining State. Each amount apportioned 
to a sponsor of an airport under paragraph (1) (B) of this subsection 
shall, during the fiscal year for which it was first authorized to be obli-
gated and the two fiscal years immediately following, be available only 
for approved airport development projects located at airports spon-
sored by it. Any amount apportioned as described in this paragraph 
which has not been obligated by grant agreement at the expiration 
of the period of time for which it was so apportioned shall be added 
to the discretionary fund established by subsection (b) of this section. 
enpWdl"^^" 
(^) ^^^ t^^® purposes of this section, the term "passengers enplaned" 
shall include United States domestic, territorial, and international 
revenue passenger enplanements in scheduled and nonscheduled service 
of air carriers and foreign air carriers in intrastate and interstate 
commerce as shall be determined by the Secretary pursuant to such 
regulations as he shall prescribe. 
(b) DISCRETIONARY FUND.—(1) The amounts authorized by subsec-
tion (a) of this section to be distributed at the discretion of the Secre-
tary shall constitute a discretionary fund. 
(2) The discretionary fund shall be available for such approved 
projects for airport development in the several States, the Common-
wealth of Puerto Rico, the Virgin Islands, and Guam as the Secretary 
considers most appropriate for carrying out the national airport sys-
tem plan regardless of the location of the projects. In determining the 
projects for which the fund is to be used, the Secretary shall consider 
the existing airport facilities in the several States, the Commonwealth 
of Puerto Rico, the Virgin Islands, and Guam, and the need for or lack 
of development of airport facilities in the several States, the Common-
wealth of Puerto Rico, the Virgin Islands, and Guam. Amounts placed 
in the discretionary fund pursuant to subsection (a) of this section, 
including amounts added to the discretionary fund pursuant to para-
graph (3) of such subsection (a), may be used only in accordance with 
the purposes for which originally appropriated. 
(c) NOTICE OF APPORTIONMENT; DEFINITION OF TERMS.—^Upon mak-
ing an apportionment as provided in subsection (a) of this section, the 
Secretary shall inform the executive head of each State, and any public 
agency which has requCvSted such information, as to the amounts appor-
"Popuiation." 
tioned to each State. As used in this section, the term "population" 
means the population according to the latest decennial census of the 
United States and the term "area" includes both land and water. 
SEC. 16. SUBMISSION AND APPROVAL OF PROJECTS FOR AIRPORT 
DEVELOPMENT. 
(a) SUBMISSION.—Subject to the provisions of subsection (b) of this 
section, any public agency, or two or more public agencies acting 
jointly, may submit to the Secretary a project application, in a form 
and containing such information, as the Secretary may prescribe, 
setting forth the airport development proposed to be undertaken. No 
project application shall propose airport development other than that 
included in the then current revision of the national airport system plan 
formulated by the Secretary under this part, and all proposed develop-
ment shall be in accordance with standards established by the Secre-
tary, including standards for site location, airport layout, grading, 
drainage, seeding, paving, lighting, and safety of approaches. 
(b) PUBLIC AGENCIES WHOSE POWERS ARE LIMITED BY STATE 
IJAW.—Nothing in this part shall authorize the submission of a project 
"Area.»» 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
227 
application by any municipality or other public agency which is sub-
ject to the law of any State if the submission of the project applica-
tion by the municipality or other public agency is prohibited by the 
law of that State. 
(c) 
APPROVAL.— 
(1) All airport development projects shall be subject to the 
approval of the Secretary, which approval may be given only if he is 
satisfied that— 
(A) the project is reasonably consistent with plans (existing 
at the time of approval of the project) of planning agencies for 
the development of the area in which the airport is located and 
will contribute to the accomplishment of the purposes of this 
part; 
(B) sufficient funds are available for that portion of the proj-
ect costs which are not to be paid by the United States under 
this part; 
(C) the project will be completed without undue delay; 
(D) the public agency or public agencies which submitted the 
project application have legal authority to engage in the airport 
development as proposed; and 
(E) all project sponsorship requirements prescribed by or 
under the authority of this part have been or will be met. 
No airport development project may be approved by the Secretary 
with respect to any airport unless a public agency holds good title, 
satisfactory to the Secretary, to the landing area of the airport or the 
site therefor, or gives assurance satisfactory to the Secretary that 
good title will be acquired. 
(2) No airport development project may be approved by the Sec-
retary which does not include provision for installation of the landing 
aids specified in subsection (d) of section 17 of this part and deter-
mined by him to be required for the safe and efficient use of the air-
port by aircraft taking into account the category of the airport and 
the type and volume of traffic utilizing the airport. 
(3) No airport development project may be approved by the Secre-
tary unless he is satisfied that fair consideration has been given to 
the interest of communities in or near which the project may be located. 
(4) It is declared to be national policy that airport development 
projects authorized pursuant to this part shall provide for the pro-
tection and enhancement of the natural resources and the quality of 
environment of the Nation. In implementing this policy, the Secretary 
shall consult with the Secretaries of the Interior and Health, Edu-
cation, and Welfare with regard to the effect that any project involv-
ing airport location, a major runway extension, or runway location 
may have on natural resources including, but not limited to, fish and 
wildlife, natural, scenic, and recreation assets, water and air quality, 
and other factors affecting the environment, and shall authorize no 
such project found to have adverse effect unless the Secretary shall 
render a finding, in writing, following a full and complete review, 
which shall be a matter of public record, that no feasible and prudent 
alternative exists and that all possible steps have been taken to mini-
mize such adverse effect. 
(d) 
HEARINGS.— 
(1) No airport development project involving the location of an 
airport, an airport runway, or a runway extension may be approved 
by the Secretary unless the public agency sponsoring the project certi-
fies to the Secretary that there has been afforded the opportunity for 
public hearings for the purpose of considering the economic, social, 
and environmental effects of the airport location and its consistency 
with the goals and objectives of such urban planning as has been 
carried out by the community. 
228 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
(2) When hearings are held under paragraph (1) of this subsec-
tion, the project sponsor shall, when requested by the Secretary, submit 
a copy of the transcript to the Secretary. 
(e) AIR AND WATER QUALITY.— 
(1) The Secretary shall not approve any project application for a 
project involving airport location, a major runway extension, or run-
way location unless the Governor of the State in which such project 
may be located certifies in Avriting to the Secretary that there is reason-
able assurance that the project will be located, designed, constructed, 
and operated so as to comply with applicable air and water quality 
standards. In any case where such standards have not been approved 
or where such standards have been promulgated by the Secretary of 
the Interior or the Secretary of Health, Education, and Welfare, cer-
tification shall be obtained from the appropriate Secretary. Notice 
of certification or of refusal to certify shall be provided within sixty 
days after the project application is received by the Secretary. 
(2) The Secretary shall condition approval of any such project 
application on compliance during construction and operation with 
applicable air and water quality standards. 
(f) AIRPORT SITE SELECTION.— 
(1) Whenever the Secretary determines (A) that a metropolitan 
area comprised of more than one unit of State or local government 
is in need of an additional airport to adequately meet the air trans-
portation needs of such area, and (B) that an additional airport for 
such area is consistent with the national airport system plan prepared 
by the Secretary, he shall notify, in writing, the governing authori-
ties of the area concerned of the need for such additional airport and 
request such authorities to confer, agree upon a site for the location of 
such additional airport, and notify the Secretary of their selection. In 
order to facilitate the selection of a site for an additional airport under 
the preceding sentence, the Secretary shall exercise such of his author-
ity under this part as he may deem appropriate to carry out the provi-
Metropoiitan 
sious of this paragraph. For the purposes of this subsection, the term 
"metropolitan area" means a standard metropolitan statistical area 
as established by the Bureau of the Budget, subject however to such 
modifications and extensions as the Secretary may determine to be 
appropriate for the purposes of this subsection. 
(2) In the case of a proposed new airport serving any area, which 
does not include a metropolitan area, the Secretary shall not approve 
any airport development project with respect to any proposed airport 
site not approved by the community or communities m which the 
airport is proposed to be located. 
SEC. 17. UNITED STATES SHARE OF PROJECT COSTS. 
(a) GENERAL PROVISION.—Except as provided in subsections (b), 
(c), and (d) of this section, the United States share payable on 
account of any approved airport development project submitted 
under section 16 of this part may not exceed 50 per centum of the 
allowable project costs. 
(b) PROJECTS IN PUBLIC LAND STATES.—In the case of any State 
containing unappropriated and unreserved public lands and non-
taxable Indian lands (individual and tribal) exceeding 5 per centum 
of the total area of all lands therein, the United States share under 
subsection (a) shall be increased by whichever is the smaller of the 
following percentages thereof: (1) 25 per centum, or (2) a percentage 
equal to one-half of the percentage that the area of all such lands m 
that State is of its total area. 
(c) PROJECTS IN THE VIRGIN ISLANDS.—The United States share 
payable on account of any approved project for airport development 
in the Virgin Islands shall be any portion of the allowable project 
area. 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
229 
costs of the project, not to exceed 75 jjer centum, as the Secretary 
considers af)propriate for carrying out the jjrovisions of this part, 
(d) LANDING AIDS.—To the extent that the project costs of an 
appro\-ed project for airport dev^elopment represent the cost of (1) 
land required for the installation of approach light systems, (2) 
touchdoAvn zone and centerline runway lighting, or (3) high intensity 
runway lighting, the United States share shall be not to exceed 
82 per centum of the allowable costs thereof. 
SEC. 18. PROJECT SPONSORSHIP. 
As a condition precedent to his approval of an airport development 
project under this part, the Secretary shall receive assurances in 
writing, satisfactory to him, that— 
(1) the airport to which the project for airport development 
relates will be available for jDublic use on fair and reasonable 
terms and without unjust discrimination; 
(2) the airport and all facilities thereon or connected therewith 
will be suitably operated and maintained, with due regard to 
climatic and flood conditions; 
(8) the aerial approaches to the airport will be adequately 
cleared and protected by removing, lowering, relocating, marking, 
or lighting or otherwise mitigating existing airport hazards and 
by pre\'enting the establishment or creation of future airport 
hazards; 
(4) appropriate action, including the adoption of zoning laws, 
has been or will be taken, to the extent reasonable, to restrict the 
use of land adjacent to or in the immediate vicinity of the airport 
to activities and purposes compatible with normal airport opera-
tions, including landing and takeoff of aircraft; 
(5) all of the facilities of the airport developed with Federal 
financial assistance and all those usable for landing and takeoff 
of aircraft will be available to the LTnited States for use by Gov-
ernment aircraft in common with other aircraft at all times with-
out charge, except, if the use by Government aircraft is substan-
tial, a charge may be made for a reasonable share, proportional 
to such use, of the cost of operating and maintaining the facilities 
used; 
(6) the airjjort operator or owner will furnish without cost to 
the Federal Government for use in connection with any air traffic 
control activities, or weather-reporting and communication activi-
ties related to air traffic control, any areas of land or water, or 
estate therein, or rights in buildings of the sponsor as the Secre-
tary considers necessary or desirable for construction at Federal 
expense of space or facilities for such purposes; 
(7) all project accounts and records will be kept in accordance 
with a standard system of accounting prescribed by the Secretary 
after consultation with ajDpropriate public agencies; 
(8) the airport operator or owner will maintain a fee and rental 
structure for the facilities and services being provided the airport 
users Avhich will make the airport as self-sustaining as possible 
under the circumstances existing at that particular airport, taking 
into account such factors as the volume of traffic and economy of 
collection; 
(9) the airport operator or owner will submit to the Secretary 
such annual or special airport financial and operations reports as 
the Secretary may reasonably request; and 
(10) the airport and all airport records will be available for 
inspection by any duly authorized agent of the Secretary upon 
reasonable request. 
Cost limitation. 
Conditions. 
Recordkeeping. 
Reports. 
Availability of 
records. 
230 
PUBLIC LAW 91-258-IVlAY 21, 1970 
[84 STAT. 
Compliance. 
rji^ insuFe compliaiice with this section, the Secretary shall prescribe 
such project sponsorship requirements, consistent with the terms of 
this part, as he considers necessary. Among other steps to insure such 
aut^h^ru^''* 
compliance the Secretary is authorized to enter into contracts with 
public agencies, on behalf of the United States. Whenever the Secre-
tary obtains from a sponsor any area of land or water, or estate therein, 
or rights in buildings of the sponsor and constructs space or facilities 
thereon at Federal expense, he is authorized to relieve the sponsor from 
any contractual obligation entered into under this part or the Federal 
^60 Stat. 170; 
Airport Act to provide free space in airport buildings to the Federal 
T9 u^c 1101 
Government to the extent he finds that space no longer required for the 
n°te- 
purposes set forth in paragraph (6) of this section. 
SEC. 19. GRANT AGREEMENTS. 
Upon approving a project application for airport development, the 
Secretary, on behalf of the United States, shall transmit to the sponsor 
or sponsors of the project application an offer to make a grant for the 
United States share of allowable project costs. An offer shall be made 
upon such terms and conditions as the Secretary considers necessary 
to meet the requirements of this part and the regulations prescribed 
thereunder. Each offer shall state a definite amount as the maximum 
obligation of the United States payable from funds authorized by this 
part, and shall stipulate the obligations to be assumed by the sponsor 
or sponsors. If and when an offer is accepted in writing by the sponsor, 
the offer and acceptance shall comprise an agreement constituting an 
obligation of the United States and of the sponsor. Thereafter, the 
amount stated in the accepted offer as the maximum obligation of the 
United States may not be increased by more than 10 per centum. Unless 
and until an agreement has been executed, the United States may not 
pay, nor be obligated to pay, any portion of the costs which have been 
or may be incurred. 
SEC. 20. PROJECT COSTS. 
(a) ALTX)WABLE PROJECT COSTS.—Except as provided in section 21 
of this part, the United States may not pay, or be obligated to pay, 
from amounts appropriated to carry out the provisions of this part, 
any portion of a project cost incurred in carrying out a project for 
airport development unless the Secretary has first determined that 
the cost is allowable. A project cost is allowable if— 
(1) it was a necessary cost incurred in accomplishing airport 
development in conformity with approved plans and specifications 
for an approved airport development project and with the terms 
and conditions of the grant agreement entered into in connection 
with the project; 
(2) it was incurred subsequent to the execution of the grant 
agreement with respect to the project, and in connection with 
airport, development accomplished under the project after the 
execution of the agreement. However, the allowable costs of a 
project may include any necessary costs of formulating the project 
(including the costs of field surveys and the preparation of plans 
and specifications, the acquisition of land or interests therein or 
easements through or other interests in airspace, and any necessary 
administrative or other incidental costs incurred by the sponsor 
specifically in connection with the accomplishment of the project 
for airport development, which would not have been incurred 
otherwise) which were incurred subsequent to May 13,1946; 
(3) in the opinion of the Secretary it is reasonable in amount, 
and if the Secretary determines that a project cost is unreasonable 
in amount, he may allow as an allowable project cost only so much 
of such project cost as he determines to be reasonable; except that 
Regulations. 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
231 
in no event may he allow project costs in excess of the definite 
amount stated in the grant agreement; and 
(4) it has not been included in any project authorized under 
section 18 of this part. 
The Secretary is authorized to prescribe such regulations, including 
regulations with respect to the auditing of project costs, as he considers 
necessary to effectuate the purposes of this section. 
(b) COSTS XOT ALLOWED.—The following are not allowable project 
costs: (1) the cost of construction of that part of an airport develop-
ment project intended for use as a public parking facility for passenger 
automobiles; or (2) the cost of construction, alteration, or repair of 
a hangar or of any part of an airport building except such of those 
buildings or parts or buildings intended to house facilities or activi-
ties directly related to the safety of persons at the airport. 
SEC. 21. PAYMENTS UNDER GRANT AGREEMENTS. 
The Secretary, after consultation with the sponsor with which a 
grant agreement has been entered into, may determine the times and 
amounts in which payments shall be made under the terms of a grant 
agreement for airport development. Payments in an aggregate amount 
not to exceed 90 per centum of the United States share of the total esti-
mated allowable project costs may be made from time to time in 
advance of accomplishment of the airport development to which the 
payments relate, if the sponsor certifies to the Secretary that the aggre-
gate expenditures to be made from the advance payments will not at 
any time exceed the cost of the airport development work which has 
been performed up to that time. If the Secretary determines that the 
aggregate amount of payments made under a grant agreement at any 
time exceeds the United States share of the total allowable project 
costs, the Ignited States shall be entitled to recover the excess. If the 
Secretary finds that the airport development to which the advance 
payments relate has not been accomplished within a reasonable time or 
the development is not completed, the L^nited States may recover any 
part of the advance payment for which the United States received no 
benefit. Payments under a grant agreement shall be made to the official 
or depository authorized by law to receive public funds and designated 
by the sponsor. 
SEC. 22. PERFORMANCE OF CONSTRUCTION WORK. 
(a) REGULATIONS.—The construction work on any project for air-
port development approved by the Secretary pursuant to section 16 of 
this part shall be subject to insj>ection and approval by the Secretary 
and m accordance with regulations prescribed by him. Such regula-
tions shall require such cost and progress reporting by the sponsor or 
sponsors of such project as the Secretary shall deem necessary. No such 
regulation shall have the effect of altering any contract in connection 
with any project entered into without actual notice of the regulation. 
(b) MINIMUM RATES or WAGES.—All contracts in excess of $2,000 
for work on projects for airport development approved under this part 
which involve labor shall contain provisions establishing minimum 
rates of wages, to be predetermined by the Secretary of Labor, in 
accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a^— 
276a-5), which contractors shall pay to skilled and unskilled labor, and 
^9 stat. m i; 
such minimum rates shall be stated in the invitation for bids and shall 
be included in proposals or bids for the work. 
(c) OTHER PROVISIONS AS TO LABOR.—All contracts for work on 
projects for airport development approved under this part which in-
volve labor shall contain such provisions as are necessary to insure 
(1) that no convict labor shall be employed; and (2) that, in the em-
ployment of labor (except in executive, administrative, and super-
visory positions), preference shall be given, where they are qualified, 
78 Stat. 23J 
47-348 0 - 7 2 - 1 9 (Pt. 1) 
54 Stat. 1179. 
232 
PUBLIC LAW 91-258-IVlAY 21, 1970 
[84 STAT. 
to individuals AVIIO have served as persons in the military service of the 
United States, as defined in section 101 (1) of the Soldiers' and Sailors' 
Civil Relief Act of 1940, as amended (50 App. U.S.C. 511(1)), and 
who have been honorably discliarged from such service. However, this 
preference shall apply only wliere the individuals are available and 
qualified to i3erform the work to which the em})loyment relates. 
SEC. 23. USE OF GOVERNMENT-OWNED LANDS. 
(a) REQUESTS FOR T^SE.—Subject to the provisions of subsection (c) 
of this section, w'hene\'er the Secretary determines that use of any 
lands owned or controlled by the Ignited States is r-easonably necessary 
for carrying out a project for air]X)rt development under this part, 
or for the operation of any public airport, including lands reasonably 
necessary to meet future development of an airport m accor'dance with 
the national airport system plan, he shall file with the head of the 
department or agency ha\ing control of the lands a request that the 
necessary property interests tlierein be conveyed to the public agency 
sponsoring the project in question or owning or controlling the airiwrt. 
The property intei-est may consist of the title to, or any other interest 
in, land or any easement through or other interest in airspace. 
(b) MAKING or CONVEYANCES.—Upon receipt of a request from the 
Secretary under this section, the head of the dej^artment or agency hav-
ing control of the lands in question shall determine whether the re-
quested conveyance is inconsistent with the needs of the department 
or agency, and shall notify the Secretary of his determination within 
a period of four months after receipt of the Secretary's request. If 
the department or agency head determines that the requested convey-
ance is not inconsistent with the needs of that dei)ai-tment or agency, 
the department or agency head is hereby authorized and directed, with 
the api)roval of the President and the Attorney (reneral of the I'nited 
States, and without any expense to the Ignited States, to perform any 
acts and to execute any instruments necessary to make the conveyance 
requested. A conveyance may be made only on the condition that, at the 
option of the Secretary, the pro2:)erty interest conveyed shall revert to 
the United States in the event that the lands in question are not devel-
oped for airport purposes or used in a manner consistent with the terms 
of the conveyance. If only a part of the property interest conveyed is 
not developed for airport purposes, or used in a maimer consistent with 
the terms of the conveyance, only that particular part shall at the option 
of the Secretary, revert to the itnited States. 
(c) EXEMPTION OF CERTAIN LANDS.—Unless otherwise specifically 
provided by law, the provisions of subsections (a) and (b) of this sec-
tion shall not apply with respect to lands owned or controlled by the 
United States within any national park, national monument, national 
recreation area, or similar area under the administration of the 
National Park Service; within any unit of the National Wildlife 
Refuge System or similar area under the jurisdiction of the Bureau 
of Sport Fisheries and Wildlife; or within any national forest or 
Indian reservation. 
SEC. 24. REPORTS TO CONGRESS. 
On or before the third day of January of each year the Secretary 
shall make a report to the Congress describing his operations under 
this part during the preceding fiscal year. The report shall include a 
detailed statement of the airport development accomplished, the status 
of each project undertaken, the allocation of appropriations, and an 
itemized statement of expenditures and receipts. 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
233 
SEC. 25. FALSE STATEMENTS. 
Any officer, agent, or employee of the United States, or any officer, 
agent, or employee of any public agency, or any person, association, 
firm, or corporation who, Avith intent to defraud the United States— 
(1) knowingly makes any false statement, false representation, 
or false report as to the character, quality, quantity, or cost of the 
material used or to be used, or the quantity or quality of the work 
performed or to be performed, or the costs thereof, in connection 
with the submission of plans, maps, specifications, contracts, or 
estimates of project costs for any project submitted to the Secre-
tary for approval under this part; 
(2) knowingly makes any false statement, false representation, 
or false report or claim for work or materials for any project 
approved by the Secretary under this part; or 
(3) knowingly makes any false statement or false representa-
tion in any report required to be made under this part; 
shall, upon conviction thereof, be punished by imprisonment for not 
Penalty. 
to exceed five years or by a fine of not to exceed $10,000, or by both. 
SEC. 26. ACCESS TO RECORDS. 
(a) RECORDKEEPING REQUIREMENTS.—Each recipient of a grant 
under this part shall keep such records as the Secretary may prescribe, 
including records which fully disclose the amount and the disposition 
by the recipient of the proceeds of the grant, the total cost of the plan 
or program in connection with which the grant is given or used, and 
the amount and nature of that portion of the Qost of the plan or pro-
gram supplied by other sources, and such other records as will facili-
tate an effective audit. 
(b) AUDIT AND EXAMINATION.—The Secretary and the Comptroller 
General of the LTnited States, or any of their duly authorized repre-
sentatives, shall have access for the purpose of audit and examination 
to any books, documents, papers, and records of the recipient that are 
pertinent to grants received under this part. 
(c) AUDIT REPORTS.—In any case in which an independent audit is 
made of the accounts of a recipient of a grant under this part relating 
to the disposition of the proceeds of such grant or relating to the plan 
or program in connection with which the grant was given or used, the 
recipient shall file a certified copy of such audit with the Comptroller 
General of the United States not later than six months following the 
close of the fiscal year for which the audit was made. On or before 
January 8 of each year the Comptroller General shall make a report 
Report to 
to the Congress describing the results of each audit conducted or ^°"^'"^^^-
reviewed by him under this section during the preceding fiscal year. 
The Comptroller General shall prescribe such regulations as he may 
Regulations. 
deem necessary to carry out the provisions of this subsection. 
(d) WITHHOLDING INFORMATION.—Nothing in this section shall 
authorize the withholding of information by the Secretary or the 
Comptroller General of the United States, or any officer or employee 
under the control of either of them, from the duly authorized com-
mittees of the Congress. 
SEC. 27. GENERAL POWERSl 
The Secretary is empowered to perform such acts, to conduct such 
investigations and public hearings, to issue and amend such orders, 
and to make and amend such regulations and procedures, pursuant to 
and consistent with the provisions of this part, as he considers neces-
sary to carry out the provisions of, and to exercise and perform his 
powers and duties under, this part. 
234 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
72 Stat. 747. 
Report to 
congressional 
committees. 
72 Stat. 775; 
82 Stat. 395. 
PART III—MISCELLANEOUS 
SEC. 51. AMENDMENTS TO FEDERAL AVIATION ACT OF 1958. 
(a)(1) 
PROCUREMENT PROCEDURES.—Section 303 of the Federal 
Aviation Act of 1958 (49 U.S.C. 1344) is amended by adding at the 
end thereof the following new subsection: 
"NEGOTIATION or PURCHASES AND CONITJACTS 
"(e) The Secretary of Transportation may negotiate without adver-
tising purchases of and contracts for technical or special property 
related to, or in support of, air navigation that he determines to 
require a substantial initial investment or an extended period of 
preparation for manufacture, and for which he determines that formal 
advertising would be likely to result in additional cost to the Govern-
ment by reason of duplication of investment or would result in duplica-
tion of necessary preparation which would unduly delay the procure-
ment of the property. The Secretary shall, at the beginning of each 
fiscal year, report to the Committee on Interstate and Foreign Com-
merce of the House of Representatives and the Committee on Com-
merce of the Senate all transactions negotiated under this subsection 
during the preceding fiscal year." 
(2) TABLE or CONTENTS.—That portion of the table of contents con-
tained in the first section of the Federal Aviation Act of 1958 which 
appears under the side heading "Sec. 303. Administration of the Agency." 
is amended by adding at the end thereof the following: 
" (e) Negotiation of purchases and contracts.". 
(b) (1) AIRPORT CERTIFICATION.—Title VI of the Federal Aviation 
Act of 1958 (49 U.S.C. 1421-1431), relating to safety regulation of 
civil aeronautics, is amended by adding at the end thereof the fol-
lowing new section: 
"AIRPORT OPERATING CERTIFICATES 
a POWER TO ISSUE 
"SEC. 612. (a) The Administrator is empowered to issue airport 
operating certificates to airports serving air carriers certificated by 
the Civil Aeronautics Board and to establish minimum safety stand-
ards for the operation of such airports. 
Terms and 
conditions. 
ISSUANCE 
"(b) Any person desiring to operate an airport serving air carriers 
certificated by the Civil Aeronautics Board may file with the Adminis-
trator an application for an airport operating certificate. If the Ad-
ministrator finds, after investigation, that such person is properly and 
adequately equipped and able to conduct a safe operation in accord-
ance with the requirements of this Act and the rules, regulations, and 
standards prescribed thereunder, he shall issue an airport operating 
certificate to such person. Each airport operating certificate shall pre-
scribe such terms, conditions, and limitations as are reasonably neces-
sary to assure safety in air transportation, including but not limited to, 
terms, conditions, and limitations relating to— 
"(1) the installation, operation, and maintenance of adequate 
air navigation facilities; and 
"(2) the operation and maintenance of adequate safety equip-
ment, including firefighting and rescue equipment capable of 
rapid access to any portion of the airport used for the landing, 
takeoff, or surface maneuvering of aircraft." 
72 Stat. 780. 
60 Stat. 170. 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
235 
(2) TABLE OF CONTENTS.—That portion of the table of contents con-
tained in the first section of the Federal Aviation Act of 1958 which 
^^ ^*^*- ''^^• 
appears under the center heading "TITLE VI—SAFETY REGULATION OF CIVIL 
AERONAUTICS" is amended by adding at the end thereof the following: 
"Sec. 612. Airport operating certificates, 
"(a) Power to issue. 
"(b) Issuance.". 
(3) PROHIBITIONS.—Section 610(a) of such Act (49 U.S.C. 1430 
(a)), relating to prohibitions, is amended— 
(A^ by striking out "and" at the end of paragraph (6); 
(B) by striking out the period at the end of paragraph (7) and 
inserting in lieu tnereof "; and"; and 
(C) by adding at the end thereof the following new paragraph: 
"(8) For any person to operate an airport serving air carriers 
certificated by the Civil Aeronautics Board without an airport 
operating certificate, or in violation of the terms of any such 
certificate." 
(4) EFFECTIVE DATE.—The amendments made by paragraph (3) 
of this subsection shall take effect upon the expiration of the two-
year period beginning on the date of their enactment. 
SEC. 52. REPEAL; CONFORMING AMENDMENTS; SAVING PROVISIONS; 
AND SEPARABILITY. 
(a) EEPEAL.—The Federal Airport Act (49 U.S.C. 1101 et seq.) is 
repealed as of the close of June 30,1970. 
(b) CONFORMING AMENDMENTS.— 
(1) The first section of the Act of March 18, 1950, relating to De-
partment of the Interior Airports (16 U.S.C. 7a), is amended by 72^stf 
1^*80?!' 
striking out "Administrator of the Federal Aviation Agency" each 
place it appears and inserting in lieu thereof at each such place "Sec-
retary of Transportation". 
(2) Section 509(c) of the Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3188a) is amended by inserting "Air- 83^stal^*2i^8^^' 
port and Airway Development Act of 1970;" immediately after "Fed-
eral Airport Act;". 
(3) Section 208(2) of the Demonstration Cities and Metropolitan 
Development Act of 1966 (42 U.S.C. 3338 (2)) is amended by inserting «o stat. ues. 
"section 19 of the Airport and Airway Development Act of 1970;" im-
mediately after "section 12 of the Federal Airport Act;". 
(4) The Federal Aviation Act of 1958 (49 U.S.C. 1301 et seq.) is 
amended— 
(A) by striking out "or by the Federal Airport Act" in section 
313 (c) and inserting in lieu thereof ", the Federal Airport Act, or ^^ ^*^*- '^^'^• 
the Airport and Airway Development Act of 1970"; and 
(B) by striking out "Federal xiirport Act" in section 1109(e) 
7s stat. 527. 
and inserting in lieu thereof "Airport and Airway Development "
^
^ "^^ ^^°'* 
Act of 1970". 
(5) Section 214(c) of the Appaladiian Regional Development Act 
of 1965 (40 App. U.S.C. 214(c)) is amended by inserting "Airport and si stat. 263; 
Airway Development Act of 1970;" immediately after "Federal Air- ^^ ^'^*' ^^^' 
port Act;". 
(6) Section 13(g) (1) of the Surplus Property Act of 1944 (50 App. 
U.S.C. 1622(g) (1)) is amended by striking out "Federal Airport Act ei stat. 678. 
(60 Stat. 170)" and inserting in lieu thereof "Airport and Airway 
Development Act of 1970". 
(7) Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267) is 
amended by striking out "and (h)" and inserting in lieu thereof "(h) 
the Airport and Airway Development Act of 1970; and (i)". 
236 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
(c) SAVING PROVISIONS.—Al] orders, determinations, rules, regula-
tions, permits, contracts, certificates, licenses, grants, rights, and privi-
leges which have been issued, made, granted, or allowed to become ef-
fective by the President, the Secretary of Transportation, or any court 
of competent jurisdiction under any provision of the Federal Airport 
49 use noi 
"^^^' ^^ amended, which are in effect at the time this section takes effect, 
"° ^are continued in effect according to their terms until modified, termi-
nated, superseded, set aside, or repealed by the Secretary of Trans-
portation or by any court of competent jurisdiction, or by operation 
of law. 
(d) SEPARABILITY.—If any provision of this title or the application 
thereof to aaiy person or circumstances is held invalid, the remainder of 
the title and the application of the provision to other persons or cir-
cumstances is not affected thereby. 
SEC. 53. MAXIMUM CHARGES FOR CERTAIN OVERTIME SERVICES. 
(a) Notwithstanding the provisions of section 451 of the Tariff Act 
ss^stlt^'ieV^' 
^^ ^^^^ (^^ U.S.C. 1451) or any other provisions of law^, the maximum 
amount payable by the owner, operator, or agent of any private air-
craft or private vessel for services performed on or after July 1, 1970, 
upon the request of such owner, operator, or agent, by officers and 
employees of the Customs Service, by officers and employees of the 
Immigration and Naturalization Service, by officers and employees 
(including an independent contractor performing inspectional serv-
ices) of the Public Health Service, and by officers and employees of 
the Department of Agriculture, on a Sunday or holiday, or at any 
time after 5 o'clock postmeridian or before 8 o'clock antemeridian on 
a week day, in connection with the arrival in or departure from the 
United States of such private aircraft or vessel, shall not exceed $25. 
(b) Notwithstanding any other provision of law, no payment shall 
be required for services described in subsection (a) if such services are 
performed on a week day and an officer or employee stationed on his 
regular tour of duty at the place of arrival or departure is available to 
perform such services. 
(c) Amounts payable for services described in subsection (a) shall 
be collected by the Department or agency providing the services and 
shall be deposited into the Treasury of the United States to the credit 
of the appropriation of that agency charged with the expense of such 
services. 
Definitions. 
(d) As used iu this section— 
(1) the term "private aircraft" means any civilian aircraft not 
being used to transport persons or property for compensation or 
hire, and 
(2) the term "private vessel" means any civilian vessel not being 
used (A) to transport persons or property for compensation or 
hire, or (B) in fishing operations or in processing of fish or fish 
products. 
TITLE II—AIRPORT AND AIRWAY REVENUE 
ACT OF 1970 
^.Citation of 
SEC. 201. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This title may be cited as the "Airport and Air-
way Eevenue Act of 1970". 
(b) AMENDMENT OF 1954 CODE.—Except as otherwise expressly pro-
vided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other provision 
68A Stat. 3. 
of the Internal Revenue Code of 1954. 
26 u s e 1 et seq. 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
237 
SEC. 202. TAX ON AVIATION FUEL. 
(a) IMPOSITION OF TAX.—Section 4041 (relating to tax on special g
g
g
*
? f2^stfu'i2{!6. 
fuels) is amended by striking- out subsections (c), ( d ) , and (e) and 
26usc404i. 
inserting after subsection (b) the following new subsections: 
"(c) NONCOMMERCIAL AVIATION.— 
" (1) I N GENERAL.—There is hereby imposed a tax of 7 cents a 
gallon upon any liquid (other than any product taxable under 
^^ ^^^^ ^^g. 
section 4081)— 
75 stat. 123. 
" ( A ) sold by any person to an owner, lessee, or other oper-
ator of an aircraft, for use as a fuel in such aircraft in 
nonconmiercial aviation; or 
" ( B ) used by any person as a fuel in an aircraft in non-
commercial aviation, unless there was a taxable sale of such 
liquid under this section. 
"(2) GASOLINE.—There is hereby imposed a tax (at the rate 
specified in paragraph (3)) upon any product taxable under 
section 4081— 
" ( A ) sold by any person to an owner, lessee, or other oper-
ator of an aircraft, for use as a fuel in such aircraft in non-
commercial aviation; or 
" ( B ) used by any person as a fuel in an aircraft in non-
commercial aviation, unless there was a taxable sale of such 
product under subparagraph ( A ) . 
The tax imposed by this paragraph shall be in addition to any 
tax imposed under section 4081. 
"(3) RATE OF TAX.—The rate of tax imposed by paragraph (2) 
is as follows: 
"3 cents a gallon for the period ending September 30, 
1972;and 
"51/^ cents a gallon for the period after September 30, 1972. 
" ( 4 ) D E F I N I T I O N OF NONCOMMERCIAL AVIATION.—For purposes 
of this chapter, the term 'noncommercial aviation" means any use 
of an aircraft, other than use in a business of transporting persons 
or property for compensation or hire by air. The term also includes 
any use of an aircraft, in a business described in the preceding 
sentence, which is properly allocable to any transportation exempt 
from the taxes imposed by sections 4261 and 4271 by reason of r,Jl°V:^^' ^^^' 
section 4281 or 4282. 
"(5) TERMINATION.—On and after July 1, 1980, the taxes 
imposed by paragraphs (1) and (2) shall not apply. 
" ( d ) ADDITIONAL T A X . — I f a liquid on which tax was imposed on 
the sale thereof is taxable at a higher rate under subsection (c) (1) 
of this section on the use thereof, there is hereby imposed a tax equal 
to the difference between the tax so imposed and the tax i)ayable at 
such Ingher rate. 
"(e) 
RATE REDUCTION.—On and after October 1, 1972— 
"(1) the taxes imposed by subsections (a) and (b) shall be 
114 cents a gallon, and 
"(2) the second and third sentences of subsections (a) and 
(b) shall not apply. 
" ( f ) 
EXEMPTION FOR F A R M U S E . — 
"(1) EXEMPTION.—Under regulations prescribed by the Secre-
tary or his delegate, no tax shall be imposed under this section on 
any liquid sold for use or used on a farm for farming purposes. 
" ( 2 ) U S E ON A FARM FOR FARMING PURPOSES.—For purposes of 
paragraph (1) of this subsection, use on a farm for farming pur-
poses shall be determined in accordance with paragraphs (1), (2), 
and (3) of section 6420(c). 
7o stat. 87. 
" (g) 
EXEMPTION FOR U S E AS SUPPLIES FOR VESSELS.—Under regula-
tions prescribed by the Secretary or his delegate, no tax shall be 
Infra 
238 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
imposed under this section on any liquid sold for use or used as supplies 
26 use 4
2
^
2
^
^
' 
^^^ vessels or aircraft (within the meaning of section 4221 (d) (3)). 
"(h) REGISTRATION,—If any liquid is sold by any person for use as 
a fuel in an aircraft, it shall be presumed for purposes of this section 
that a tax imposed by this section applies to the sale of such liquid 
unless the purchaser is registered in such manner (and furnishes such 
information in respect of the use of the liquid) as the Secretary or his 
delegate shall by regulations provide." 
To^suit^'assi*^*' 
(^) CONFORMING AND TECHNICAL AMENDMENTS.—Section 4041(b) 
75 Stat. 123! 
(relating to imposition of tax on special motor fuels) is amended— 
(1) by striking out "motor vehicle, motorboat, or airplane" 
each place it appears and inserting in lieu thereof "motor vehicle 
or motorboat", and 
(2) by striking out "for the propulsion of" each place it appears 
and inserting in lieu thereof "in". 
SEC. 2
0
3
. 
TAX 
ON 
TRANSPORTATION 
OF 
PERSONS 
BY 
AIR. 
y/stat^'i^y^' 
(^) IMPOSITION OF TAX.—Section 4261 (relating to imposition of 
tax on transportation of persons by air) is amended to read as 
follows: 
"SEC. 4261. IMPOSITION OF TAX. 
"(a) I N GENERAL.—There is hereby imposed upon the amount paid 
for taxable transportation (as defined in section 4262) of any person 
which begins after June 30, 1970, a tax equal to 8 percent of the 
amount so paid. In the case of amounts paid outside of the United 
States for taxable transportation, the tax imposed by this subsection 
shall apply only if such transportation begins and ends in the United 
States. 
"(b) 
SEATS, BERTHS, ETC.—There is hereby imposed upon the 
amount paid for seating or sleeping accommodations in connection 
with transportation which begins after June 30, 1970, and with 
respect to which a tax is imposed by subsection (a), a tax equal to 8 
percent of the amount so paid. 
"(c) USE OF INTERNATIONAL TRAVEL FACILITIES.—There is hereby 
imposed a tax of $3 upon any amount paid (whether within or without 
the United States) for any transportation of any person by air, if 
such transportation begins in the United States and begins after 
June 30, 1970. This subsection shall not apply to any transportation 
all of which is taxable under subsection (a) (determined without 
regard to sections 4281 and 4282). 
"(d) B Y WHOM PAID.—Except as ])rovided in section 4263 (a), 
the taxes imposed by this section shall be paid by the person making 
the payment subject to the tax. 
"(e) REDUCTION, ETC., OF RATES.—Effective wuth respect to trans-
portation beginning affer June 30, 1980— 
"(1) the rate of the taxes imposed by subsections (a) and (b) 
shall be 5 percent, and 
"(2) the tax imposed by subsection (c) shall not apply." 
76 Stat. 116. 
Qj"^ DEFINITION 
OF TAXABI^ 
TRANSPORTATION.—Section 
4262 
(relating to definition of taxable transportation) is amended— 
(1) by striking out "subchapter" in subsections (a) and (b) 
and insertin;2f in lieu thereof "part"; 
(2) by striking out "transportation" in subsection (a) (1) and 
inserting in lieu thereof "transportation by air"; 
(3) by strikinj^r out "in the case of transportation" in subsec-
tion (a) (2) and inserting in lieu thereof "in the case of trans-
portation by air"; 
(4) by striking out "any transportation which" in subsection 
(b) and inserting in lieu thereof "any transportation by air 
which"; and 
Post, p. 241. 
Ante, p. 238. 
Ante, p. 238. 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
239 
(5) by adding at the end thereof the following new subsection: 
"(d) TRANSPORTATION.—For purposes of this part, the term 'trans- tiol^^^"^^"'^'^' 
portation' includes layover or waiting time and movement of the air-
craft in deadhead service." 
(c) 
REQUIREMENTS 
W I T H 
RESPECT TO AIRIJNE 
TICKETS AND 
ADVERTISING.— 
(1) Subchapter B of chapter 75 (relating to other otfenses) is y/sut^'is's.^ ' 
amended by adding at the end thereof the following new section: 
26 use 7261-
"SEC. 7275. PENALTY FOR OFFENSES RELATING TO CERTAIN AIRLINE 
TICKETS AND ADVERTISING. 
"(a) TICKETS.—In the case of transportation by air all of which is 
taxable transportation (as defined in section 4262), the ticket for such 
transportation— 
" (1) shall show the total of (A) the amount paid for such trans-
portation and (B) the taxes imposed by sections 4261 (a) and (b), 
" (2) shall not show separately the amount paid for such trans-
portation nor the amount of such taxes, and 
"(3) if the ticket shows amounts paid with respect to any seg-
ment of such transportation, shall comply with paragraphs (1) 
and (2) with respect to such segments as well as with respect to 
the sum of the segments. 
"(b) ADVERTISING.—In the case of transportation by air all of which 
is taxable transportation (as defined in section 4262) or would be tax-
able transportation if section 4262 did not include subsection (b) 
t hereof, any advertising made by or on behalf of any person furnishing 
such transportation (or offering to arrange such transportation) which 
states the cost of such transportation shall— 
"(1) state such cost only as the total of (A) the amount to be 
paid for such transportation, and (B) the taxes imposed by sec-
tions 4261 (a), (b),and (c),and 
"(2) shall not state separately the amount to be paid for such 
transportation nor the amount of such taxes. 
"(c) PENALTY.—Any person w'ho violates any provision of subsec-
tion (a) or (b) is, for each violation, guilty of a misdemeanor, and 
upon conviction thereof shall be fined not more than $100." 
(2) The table of sections for such subchapter B is amended by adding 
at the end thereof the following: 
"Sec. 7275. Penalty for offenses relating to certain airline tickets and adver-
tising." 
SEC. 
2
0
4
. 
TAX 
ON 
TRANSPORTATION 
OF 
PROPERTY 
BY 
AIR. 
Subchapter C of chapter 33 (relating to transportation by air) y^^"^^' ^ngn^^' 
is amended by adding at the end thereof the following new part: 
26 use 4261-
4264. 
"PART 
II—PROPERTY 
"Sec. 4271. Imposition of tax. 
"Sec. 4272. Definition of taxable transportation, etc. 
"SEC. 4271. IMPOSITION OF TAX. 
"(a) I N GENERAL. —There is hereby imposed upon the amount paid 
within or without the United States for the taxable transportation 
(as defined in section 4272) of property which begins after June 30, 
1970, a tax equal to 5 percent of the amount so paid for such transporta-
tion. The tax imposed by this subsection shall apply only to amounts 
paid to a person engaged in the business of transporting property by 
air for hire. 
"(b) B Y WHOM PAID.— 
"(1) I N GENERAL.—Except as provided by paragraph (2), the 
tax imposed by subsection (a) shall be paid by the person making 
the payment subject to tax. 
Termination 
date. 
240 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
"(2) PAYMENTS MADE OUTSIDE THE UNITED STATES.—If a pay-
ment subject to tax under subsection (a) is made outside the 
United States and the person making such payment does not pay 
such tax, such tax— 
"(A) shall be paid by the person to whom the property is 
delivered in the United States by the person furnishing the 
last segment of the taxable transportation in respect of which 
such tax is imposed, and 
"(B) shall be collected by the person furnishing the last 
segment of such taxable transportation. 
"(c) DETERMINATION or AMOUNTS PAID IN CERTAIN CASES.—For 
l)urposes of this section, in any case in which a person engaged in the 
business of transporting property by air for hire and one or more 
other persons not so engaged jointly provide services which include 
taxable transportation of property, and the person so engaged receives, 
for the furnishing of such taxable transportation, a portion of the 
receipts from the joint providing of such services, the amount paid for 
the taxable transportation shall be treated as being the sum of (1) 
the portion of the receipts so received, and (2) any expenses incurred 
by any of the persons not so engaged which are properly attributable 
to such taxable transportation and which are taken into account in 
determining the portion of the receipts so received. 
(d) TERMINATION.—Effective with respect to transportation begin-
ning after June 30, 1980, the tax imposed by subsection (a) shall not 
apply. 
"SEC. 4272. DEFINITION OF TAXABLE TRANSPORTATION, ETC. 
"(a) I N GENERAL.—For purposes of this part, except as provided in 
subsection (b), the term 'taxable transportation' means transportation 
by air which begins and ends in the United States. 
"(b) EXCEPTIONS.—For purposes of this part, the term 'taxable 
transportation' does not include— 
"(1) that portion of any transportation which meets the 
requirements of paragraphs (1), (2), (3), and (4) of section 
4262(b), or 
26'u^sc'4262. 
"(2) uuder regulations prescribed by the Secretary or his dele-
gate, transportation of property in the course of exportation 
(including shipment to a possession of the United States) by con-
tinuous movement, and in due course so exported. 
"(c) EXCESS BAGGAGE OF PASSENGERS.—For purposes of this part, 
the term 'property' does not include excess baggage accompanying a 
passenger traveling on an aircraft operated on an established line. 
"(d) TRANSPORTATION.—For purposes of this part, the term 'trans-
portation' includes layover or waiting time and movement of the air-
craft in deadhead service." 
SEC. 205. MISCELLANEOUS AMENDMENTS RELATING TO TAXES ON 
TRANSPORTATION BY AIR. 
(a) EXEMPTIONS AND SPECIAL RULES.— 
^"'^' ^60^^' 
^^\ Subchapter C of chapter 33 (relating to transportation by 
air) is amended by adding at the end thereof the following new 
part: 
76 Stat. J16; 
Ante, p. 238 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
241 
TART III—SPECIAL PROVISIONS APPLICABLE TO 
TAXES ON TRANSPORTATION BY AIR 
"Sec. 4281. Small aircraft on nonestablished lines. 
"Sec. 4282. Transportation by air for other members of 
affiliated group. 
"SEC. 4281. SMALL AIRCRAFT ON NONESTABLISHED LINES. 
"The taxes imposed by sections 4261 and 4271 shall not apply to 
transportation by an aircraft having a maximum certificated takeoff 
weight (as defined in section 4492(b)) of 6,000 jpounds or less, except 
when such aircraft is operated on an established line. 
"SEC. 4282. TRANSPORTATION BY AIR FOR OTHER MEMBERS OF AFFIL-
IATED GROUP. 
"(a) GENERAL RULE.—^Under regulations prescribed by the Secre-
tary or his delegate, if— 
"(1) one member of an affiliated group is the owner or lessee 
of an aircraft, and 
"(2) such aircraft is not available for hire by persons who are 
not members of such group, 
no tax shall be imposed under section 4261 or 4271 upon any payment 
received by one member of the affiliated group from another member 
of such group for services furnished to such other member in connec-
tion with the use of such aircraft. 
"(b) AFFILIATED GROUP.—For purposes of subsection (a), the term 
'affiliated group' has the meaning assigned to such term by section 
1504(a), except that all corporations shall be treated as includible 
corporations (without any exclusion under section 1504(b))." 
(2) Section 4292 (relating to State and local governmental 
exemption) is amended by striking out "or 4261". 
(3) Section 4293 (relating to exemption for United States and 
possessions) is amended by striking out "subchapters B and C" 
and inserting in lieu thereof "subchapter B". 
(4) Section 4294(a) (relating to exemption for nonprofit edu-
cational organizations) is amended by striking out "or 4261". 
(b) CREDITS AND REFUNDS.— 
(1) (IA) Section 6421(a) (relating to nonhighway use of gaso-
line) is amended by adding the following sentence at the end 
thereof: "Except as provided in paragraph (3) of subsection (e) 
of this section, m the case of gasoline used after June 30, 1970, as 
a fuel in an aircraft, the Secretary or his delegate shall pay (with-
out interest) to the ultimate purchaser of such gasoline an amount 
equal to the amount determined by multiplying the number of 
gallons of gasoline so used by the rate at which tax was imposed on 
such gasoline under section 4081." 
(B) Section 6421 (e) (relating to exempt sales; other payments 
or refunds available) is amended by adding at the end thereof the 
following new paragraph: 
"(3) GASOLINE USED IN NONCOMMERCIAL AVIATION.—This sec-
tion shall not apply in respect of gasoline which is used after 
June 30, 1970, as a fuel in an aircraft in noncommercial aviation 
(as defined in section 4041 (c) (4))." 
(2) Section 6415 (relating to credits or refunds to persons who 
collected certain taxes) is amended by striking out "section 4251 
or 4261" each place it appears and inserting in lieu thereof "sec-
tion 4251,4261, or 4271". 
Ante, pp. 238, 
239. 
Post, p. 243. 
"Affiliated 
group." 
68A Stat. 369; 
80 Stat. 116. 
26 u s e 1504, 
72 Stat. 260. 
68A Stat. 511. 
72 Stat. 1292. 
70 Stat. 394; 
73 Stat. 615. 
Infra, 
70 Stat. 389; 
75 Stat. 123. 
70 Stat. 394. 
Ante, p. 237. 
68A Stat. 798. 
76 Stat. 117. 
79 Stat. 148. 
242 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
72stauuo6. 
(3) Subparagraph (A) of section 6416(a)(2) 
(relating to 
exceptions) is amended by striking out "section 4041 (a) (2) or 
(b) (2) (use of diesel and special motor fuels)" and inserting in 
lieu thereof "section 4041 (relating to tax on special fuels) on 
the use of any liquid". 
(4) Subparagraph (M) of section 6416(b)(2) (relating to 
special cases in which tax payments constitute overpayments) is 
amended to read as follows: 
"(M) in the case of gasoline, used or sold for use in the 
production of special fuels referred to in section 4041;". 
(c) 
OTHER TECHNICAL AND CLERICAL AMENDMENTS.— 
?fi^!=!" 1,7 
^^^ Section 4263 (relating to exemptions) is hereby repealed. 
(2) Section 4264 (relating to special rules) is redesignated as 
section 4263. 
(3) Section 4291 is amended by striking out "section 4264(a)" 
and inserting in lieu thereof "section 4263 (a)". 
(4) So much of subchapter C of chapter 33 (relating to trans-
portation of persons) E
L
S precedes section 4261 is amended to read 
as follows: 
"Subchapter C—Transportation by Air 
"Part I. Persons. 
"Part IT. Property. 
"Part III. Special provisions relating to taxes on transpor-
tation by air. 
"PART I—PERSONS 
"Sec. 4261. Imposition of tax. 
"Sec. 4262. Definition of taxable transportation. 
"Sec. 4263. Special rules.'' 
(5) The table of subchapters for chapter 33 is amended by 
striking out "SUBCHAPTER C—Transportation of Persons by Air." and 
inserting in lieu thereof "SUBCHAPTER C—Transportation by Air." 
6
8
A Stat. 483. 
(^) Sectiou 4082(c) (relating to certain uses defined as sales) 
is amended by striking out "or of special motor fuels referred to 
in section 4041(b)" and inserting in lieu thereof "or of special 
fuels referred to in section 4041". 
y/stal^^ies^' 
^^) Section 6420(i)(l) 
(relating to cross references) 
is 
amended— 
(A) by striking out "diesel fuel and special motor fuels" 
and inserting in lieu thereof "special fuels", and 
(B) by striking out "section 4041(d)" and inserting in 
lieu thereof "section 4041(f)". 
(8) Section 6421 (j) (relating to cross references) is amended 
to read as follows: 
"(j) 
CROSS REFERENCES.— 
"(1) For rate of tax in case'of special fuels used in noncommercial 
aviation or for nonhighway purposes, see section 4041. 
"(2) For civil penalty for excessive claims under this section, see 
section 6675. 
"(3) For fraud penalties, etc., see chapter 75 (section 7201 and fol-
lowing, relating to crimes, other offenses, and forfeitures)." 
SEC. 206. TAX ON USE OF AIRCRAFT. 
26 use 4461 
(a) IMPOSITION OF TAX.—Chapter 36 (relating to certain other ex-
^' ^^^* 
cise taxes) is amended by adding at the end thereof the following 
new subchapter: 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
243 
"Subchapter E—Tax on Use of Civil Aircraft 
"Sec. 4491.Imposition of tax. 
"Sec. 4492. Definitions. 
"Sec. 4493. Special rules. 
"Sec. 4494. Cross reference. 
"SEC. 4491. IMPOSITION OF TAX. 
"(a) IMPOSITION OF TAX.—A tax is hereby imposed on the use of 
any taxable civil aircraft during any year at the rate of— 
"(1J $25, plus 
"(2) (A) m the case of an aircraft (other than a turbine engine 
powered aircraft) having a maximum certificated takeoff weight 
of more than 2,500 pounds, 2 cents a pound for each pound of the 
maximum certificated takeoff weight, or (B) in the case of any 
turbine engine powered aircraft, 3i/^ cents a pound for each pound 
of the maximum certificated takeoff weight. 
"(b) B Y WHOM PAID.—Except as provided in section 4493(a), the 
tax imposed by this section shall be paid— 
"(1) in the case of a taxable civil aircraft described in section 
4492(a) (1), by the person in whose name the aircraft is, or is 
required to be, registered, or 
' (2) in the case of a taxable civil aircraft described in section 
4492(a)(2), by the United States person by or for whom the 
aircraft is owned. 
" (c) PRORATION OF TAX.—If in any year the first use of the taxable 
civil aircraft is after the first month in such year, that portion of the 
tax which is determined under subsection (a) (2) shall be reckoned 
proportionately from the first day of the month in which such use 
occurs to and including the last day in such year. 
"(d) ONE TAX LIABILITY PER YEAR,— 
" (1) I N GENERAL.—To the extent that the tax imposed by this 
section is paid with respect to any taxable civil aircraft for any 
year, no further tax shall be imposed by this section for such 
year with respect to such aircraft. 
"(2) 
CROSS REFERENCE.— 
"For privilege of paying tax imposed by this section in install-
ments, see section 6156. 
"(e) TERMINATION.—On and after July 1, 1980, the tax imposed 
by subsection (a) shall not apply. 
"SEC. 4492. DEFINITIONS. 
"(a) TAXABLE CIVIL AIRCRAFT.—For purposes of this subchapter, 
the term 'taxable civil aircraft' means any engine driven aircraft— 
"(1) registered, or required to be registered, under section 
501(a) of the Federal Aviation Act of 1958 (49 U.S.C, sec. 
1401(a)), or 
72 stat. 771. 
"(2) which is not described in paragraph (1) but which is 
owned by or for a United States person. 
"(b) WEIGHT.—For purposes of this subchapter, the term 'maxi-
mum certificated takeoff weight' means the maximum such weight con-
tained in the type certificate or airworthiness certificate. 
" (c) OTHER DEFINITIONS.—For purposes of this subchapter— 
"(1) YEAR.—The term 'year' means the one-year period begin-
ning on July 1. 
"(2) USE.—The term 'use' means use in the navigable airspace 
of the United States. 
244 
PUBLIC LAW 91-258-IVlAY 21, 1970 
[84 STAT. 
"(3) NAVIGABLE AIRSPACE OF THE UNITED STATES.—The term 
'navigable airspace of the United States' has the definition given to 
such term by section 101(24) of the Federal Aviation Act of 1958 
^2 Stat. 737. 
(49 XJ.S.C, sec. 1801 (24)), except that such term does not include 
the navigable airspace of the Commonwealth of Puerto Rico or of 
any possession of the United States. 
"SEC. 4493. SPECIAL RULES. 
"(a) PAYMENT OF TAX BY LESSEE.— 
"(1) I N GENERAL,—Any person who is the lessee of any taxable 
civil aircraft on the day in any year on which occurs the first use 
which subjects such aircraft to the tax imposed by section 4491 
for such year may, under regulations prescribed by the Secretary 
or his delegate, elect to be liable for payment of such tax. Not-
withstanding any such election, if such lessee does not pay such 
tax, the lessor shall also be liable for payment of such tax. 
"(2) EXCEPTION.—No election may be made under paragraph 
(1) with respect to any taxable civil aircraft which is leased from 
a person engaged in the business of transporting persons or prop-
erty for compensation or hire by air. 
commerce ^^"^ 
" ( b ) C E R T A I N 
P E R S O N S 
E N G A G E D IN FoREIGN AlR COMMERCE.—• 
"(1) ELECTION TO PAY TENTATIVE TAX.—Any person who is a 
significant user of taxable civil aircraft in foreign air commerce 
may, with respect to that portion of the tax imposed by section 
4491 which is determined under section 4491(a) (2) on any tax-
able civil aircraft for any year beginning on or after July 1,1970, 
elect to pay the tentative tax determined under paragraph (2). 
The payment of such tentative tax shall not relieve such person 
from payment of the net liability for the tax imposed by section 
4491 on such taxable civil aircraft (determined as of the close 
of such year). 
"(2) TENTATIVE TAX.—For purposes of paragraph (1), the 
tentative tax with respect to any taxable civil aircraft for any 
year is an amount equal to that portion of the tax imposed by 
section 4491 on such aircraft for such year w^hich is determined 
under section 4491 (a)(2), reduced by a percentage of such amount 
equal to the percentage which the aggregate of the payments to 
Post, p. 245. 
which such person was entitled under section 6426 (determined 
without regard to section 6426(c) (2)) with respect to the preced-
ing year is of the aggregate of the taxes imposed by section 4491 
for which such person was liable for payment for the preceding 
year. In the case of the year beginning on July 1, 1970, this sub-
section shall apply only if the person electing to pay the tentative 
tax establishes what the tentative tax would have been for such 
year if section 4491 had taken effect on July 1, 1969. 
"(3) 
SIGNIFICANT USERS OF AIRCRAFT IN FORETGN AIR COM-
MERCE.—For purposes of paragraph (1), a person is a significant 
user of taxable civil aircraft in foreign air commerce for any year 
only if the aggregate of the payments to which such person was 
entitled under section 6426 (determined without regard to section 
6426(c) (2)) wdth respect to the preceding year was at least 10 
percent of the aggregate of the taxes imposed by section 4491 for 
which such person was liable for payment for the preceding 
year. 
"(4) NET LIABILITY FOR TAX.—For purposes of paragraph (1), 
the net liability for the tax imposed by section 4491 with respect 
to any taxable civil aircraft for any year is— 
"(A) the amount of the tax imposed by such section, 
reduced by 
75 Stat. 125. 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
245 
"(B) the amount payable under section 6426 with respect 
to such aircraft for the year (determined without regard 
to section 6426 (c)(2)). 
"SEC. 4494. CROSS REFERENCE. 
"For penalties and administrative provisions applicable to this 
subchapter, see subtitle F." 
(b) INSTALLMENT P A Y M E N T or T A X . ^ 
(1) Section 6156(a) (relating to installment payments of tax 
on use of highway motor vehicles) is amended by inserting "or 
4491" after "4481". 
(2) Paragraph (2) of section 6156(e) is amended to read as 
follows: 
"(2) July, August, or September of 1972, in the case of the tax 
imposed by section 4481." 
(c) EEFUND FOR CERTAIN FOREIGN AIR COMMERCE.—Subchapter B 
of chapter 65 (relating to rules of special application) is amended by 82^st^t^'262.^^^' 
adding at the end thereof the following new section: 
26 use 64n-
"SEC. 6426. REFUND OF AIRCRAFT USE TAX WHERE PLANE TRANS- ^
"
^
^
^ 
PORTS FOR HIRE IN FOREIGN AIR COMMERCE. 
"(a) GENERAL RULE.—In the case of any aircraft used in the busi-
ness of transporting persons or property for compensation or hire by 
air, if any of such transportation during any period is transportation 
in foreign air commerce, the Secretary or his delegate shall pay (with-
out interest) to the person who paid the tax under section 4491 for 
^"'^' P- 243. 
such period the amount determined hj multiplying that portion of the 
amount so paid for such period which is determined under section 
4491 (a) (2) with respect to such aircraft by a fraction— 
" (1) the numerator of which is the number of airport-to-airport 
miles such aircraft traveled in foreign air commerce during such 
period while engaged in such business, and 
"(2) the denominator of which is the total number of airport-
to-airport miles such aircraft traveled during such period. 
" (b) DEFINITIONS.—For purposes of this section— 
Definitions. 
"(1) FOREIGN AIR COMMERCE.—The term 'foreign air commerce' 
means any movement by air of the aircraft which does not begin 
and end in the United States; except that any segment of such 
movement in which the aircraft traveled between two ports or 
stations in the United States shall be treated as travel which is 
not foreign air commerce. 
"(2) AIRPORT-TO-AIRPORT MILES.—The term 'airport-to-airport 
miles' means the official mileage distance between airports as deter-
mined under regulations prescribed by the Secretary or his 
delegate. 
"(c) PAYMENTS TO PERSONS PAYING TENTATIVE TAX.—In the case 
of any person who paid a tentative tax determined under section 
4493(b) with respect to any aircraft for any period, the amount 
payable under subsection (a) with respect to such aircraft for such 
period— 
"(1) shall be computed with reference to that portion of the 
tax imposed under section 4491 for such period which is deter-
mined under section 4491 (a) (2), and 
"(2) as so computed, shall be reduced by an amount equal to— 
"(A) the amount by which that portion of the tax imposed 
under section 4491 for such period which is determined under 
section4491 (a) (2),exceeds 
"(B) the amount of the tentative tax determined under 
section 4493(b) paid for such period. 
"(d) TIME FOR FILING CLAIM.—Not more than one claim may be 
filed under this section by any person with respect to any year. No 
246 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
claim shall be allowed under this subsection with respect to any year 
unless liled on or before the first September 30 after the end of such 
year. 
"(e) REGULATIONS.—The Secretary or his delegate may by regula-
tions prescribe the conditions, not inconsistent with the provisions of 
this section, under which payments may be made under this section or 
the amount to M'hich any person is entitled under this section w'ith 
respect to any period may be treated by such person as an overpayment 
which may be credited against the tax imposed by section 4491 wnth 
respect to such period." 
(d) 
CLERICAL AMENDMENTS.— 
(1) The table of subchapters for chapter 36 is amended by add-
ing at the end thereof the following: 
"SUBCHAPTER E. Tax on use of civil aircraft." 
(2) The heading for section 6156 is amended by inserting "AND 
CIVIL AIRCRAFT" after "HIGHWAY MOTOR VEHICLES". 
(3) The table of sections for subchapter A of chapter 62 is 
amended by inserting "and civil aircraft" after "highway naotor 
vehicles" in the item relating to section 6156. 
(4) The table of sections for subchapter B of chapter 65 is 
amended by adding at the end thereof the following: 
"Sec. 6426. Refund of aircraft use tax where plane trans-
ports for hire in foreign air commerce." 
SEC. 207. PAYMENTS WITH RESPECT TO CERTAIN USES OF GASOLINE 
AND SPECIAL FUELS. 
(a) 
PAYMENTS W I T H RESPECT TO CERTAIN NONTAXABLE USES or 
FUELS.—Subchapter B of chapter 65 (relating to rules of special 
Ante, p. 245. 
application) is amended by adding after section 6426 (as added by sec-
tion 406 (c) of this title) the following new section: 
"SEC. 6427. FUELS NOT USED FOR TAXABLE PURPOSES. 
"(a) NONTAXABLE USES.—^Except as provided in subsection (f), if 
75 Stat. 123; 
tax has been imposed under section 4041 (a), (b), or (c) on the sale 
Ante, p. 237. 
^^ ^^^ ^^^j ^^^^ after June 30,1970, the purchaser uses such fuel other 
than for the use for which soldj or resells such fuel, the Secretary or 
his delegate shall pay (without interest) to him an amount equal to— 
"(1) the amount of tax imposed on the sale of the fuel to him, 
reduced by 
"(2) if he uses the fuel, the amount of tax which would have 
been imposed under section 4041 on such use if no tax under section 
4041 had been imposed on the sale of the fuel. 
"(b) LOCAL TRANSIT SYSTEMS.— 
"(1) ALLOWANCE.—Except as provided in sub'section (f) if any 
fuel on the sale of which tax was imposed under section 4041 (a) 
or (b) is, after June 30, 1970, used by the purchaser during any 
calendar quarter in vehicles while engaged in furnishing sched-
uled common carrier public passenger land transportation serv-
ice along regular routes, the Secretary or his delegate shall, sub-
ject to the provisions of paragraph (2), pay (without interest) to 
the purchaser the amount determined bv multiplying— 
"(A) 2 cents for each gallon of fuel so used on which tax 
was imposed at the rate of 4 cents a gallon, by 
"(B) the percentage which the purchaser's commuter fare 
76 Stat. 119. 
revenue (as defined in section 6421(d)(2)) derived from 
such scheduled service during the quarter was of his total 
passenger fare revenue derived from such scheduled service 
during the quarter. 
"(2) LIMITATION.—Paragraph (1) shall apply in respect of 
fuel used during any calendar qviarter only if at least 60 percent 
of the total passenger fare revenue derived during the quarter 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
247 
from scheduled service described in paragraph (1) by the pur-
chaser was attributable to commuter fare revenue derived during 
the quarter by the purchaser from such scheduled service. 
"(c) L^SE F
O
R FARMING PURPOSES.—Except as provided in sub-
section (f), if any fuel on the sale of which tax was imposed under 
section 4041 (a), (b), or (c) is, after June 30, 1970, used on a farm ^nfefp^'aa?"' 
for farming purposes (within the meaning of section 6420(c)), the 
70 stat. 87. 
Secretary or his delegate shall pay (without interest) to the pur-
chaser an amount equal to the amount of the tax imposed on the sale 
of the fuel. For purposes of this subsection, if fuel is used on a farm 
by any person other than the owner, tenant, or operator of such farm, 
such owner, tenant, or operator shall be treated as the user and pur-
chaser of such fuel. 
"(d) 
TIME FOR FILING CLAIMS ; PERIOD COVERED.— 
"(1) GENERAL RULE.^Except as provided in paragraph (2), 
not more than one claim may be filed under subsection (a), (b), or 
(c), by any person with respect to fuel used during his taxable 
year; and no claim shall be allowed under this paragraph with 
respect to fuel used during any taxable year unless filed by the pur-
chaser not later than the time prescribed by law for filing a claim 
for credit or refund of overpayment of income tax for such taxable 
year. For purposes of this paragraph, a person's taxable year shall 
be his taxable year for purposes of subtitle A. 
"(2) EXCEPTION.—If $1,000 or more is payable under subsec-
tions (a) and (b) to any person with respect to fuel used during 
any of the first three quarters of his taxable year, a claim may be 
filed under this section by the purchaser with respect to fuel used 
during such quarter. No claim filed under this paragraph shall be 
allowed unless filed on or before the last day of the first quarter 
following the quarter for which the claim is filed. 
"(e) 
APPLICABLE LAWS.— 
"(1) I N GENERAL.—All provisions of law^, including penalties, 
applicable in respect of the taxes imposed by section 4041 shall, 
insofar as applicable and not inconsistent with this section, apply 
in respect of the payments provided for in this section to the same 
extent as if such payments constituted refunds of overpayments of 
the tax so imposed. 
"(2) 
EXAMINATION OF BOOKS AND WITNESSES.—For the purpose 
of ascertaining the correctness of any claim made under this sec-
tion, or the correctness of any payment made in respect of any 
such claim, the Secretary or his delegate shall have the authority 
granted by paragraphs (1), (2), and (3) of section 7602 (relat- 
^^^ ^tat. 901. 
ing to examination of books and witnesses) as if the claimant w^ere 
the person liable for tax. 
"(f) 
INCOME TAX CREDIT IN LIEU OF PAYMENT.— 
"(1) PERSONS NOT SUBJECT TO INCOME TAX.—Payment shall be 
made under this section only to— 
"(A) the United States or an agency or instrumentality 
thereof, a State, a political subdivision of a State, or any 
agency or instrumentality of one or more States or political 
subdivisions, or 
"(B) an organization exempt from tax under section 501 
(a) (other than an organization required to make a return 
26 use 501. 
of the tax imposed under subtitle A for its taxable year). 
"(2) EXCEPTION.—Paragraph (1) shall not apply to a payment 
of a claim filed under subsection (d) (2). 
47-348 O - 72 - 20 (Pt. 1) 
248 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
"(3) ALLOWANCE OF CREDIT AGAINST INCOME TAX.— 
"For allowances of credit against the income tax imposed by 
subtitle A for fuel used or resold by the purchaser, see section 39. 
"(g) REGULATIONS.—The Secretary or his delegate may by regu-
lations prescribe the conditions, not inconsistent with the provisions 
of this section, under which payments may be made under this section. 
"(h) CROSS REFERENCES.— 
"(1) For civil penalty for excessive claims under this section, 
see section 6675. 
"(2) For fraud penalties, etc., see chapter 75 (section 7201 and fol-
lowing, relating to crimes, other offenses, and forfeitures)." 
79 Stat. 165. 
(b) TiME F
O
R FiLiNG CLAIMS.—Section 6420(b) (2) (B) (relating 
to gasoline used on farms), section 6421(c) (3) (A) (ii) (relating to 
gasoline used for certain nonhighway purposes or by local transit 
79 Stat. 137. 
systems), and section 6424(b) (1) (relating to lubricating oil not used 
in highway vehicles) are each amended by striking out "time pre-
scribed by law for filing an income tax return for such taxable year" 
and inserting in lieu thereof "time prescribed by law for filing a claim 
for credit or refund of overpayment of income tax for such taxable 
year". 
26 use 39 ^' 
^^) CREDIT AGAINST INCOME TAX.—Section 39 (relating to certain 
uses of gasoline and lubrication oil) is amended— 
(1) by inserting ", SPECIAL FUELS," after "GASOLINE" 
in the heading of such section; 
(2] by striking out "and" at the end of subsection (a) (2), by 
striking out the period at the end of subsection (a)(3) and insert-
ing in lieu thereof ", and", and by adding at the end of subsection 
(a) the following new paragraph: 
Ante, p . 246. 
"(4) midcT sectlou 6427 with respect to fuels used for non-
taxable purposes or resold during the taxable year (determined 
without regard to section 6427(f))."; 
(3) by striking out "6421 or 6424" in subsection (c) and insert-
ing in lieu thereof "6421,6424, or 6427"; and 
(4) by striking out "6421 (i) or 6424(g)" in subsection (c) 
and inserting in lieu thereof "6421 (i), 6424(g), or 6427(f)". 
(d) TECHNICAL AND CONFORMING AMENDMENTS.— 
^^79 Stat. 167. 
(1) Sectious 874(a), 6201(a)(4), and 6401(b) are each 
amended by striking out "uses of gasoline and lubricating oil" and 
inserting in lieu thereof "uses of gasoline, special fuels, and lubri-
cating oil". 
(2) The heading of section 6201(a) (4) is amended by striking 
out "FOR USE OF GASOLINE" and inserting in lieu thereof "UNDER 
SECTION 39". 
75 ^'^'- 139- 
(3) Section 6206 is amended— 
(A) by striking out "AND 6424" in the heading of such 
section and inserting in lieu thereof "6424, AND 6427" ^ 
(B) by striking out "or 6424" each place it appears in the 
text of such section and inserting in lieu thereof "6424, or 
6427"; and 
(C) by striking out "by section 4081 (or, in the case of 
lubricating oil, by section 4091)" and inserting in lieu thereof 
"by section 4081 (with respect to payments under sections 
6420 and 6421), 4091 (with respect to payments under sec-
tion 6424), or 4041 (with respect to payments under section 
6427)". 
72 Stat. 1306. 
(4) Sectiou 6416(b)(2)(G) is amended by inserting "before 
July 1, 1970" after "if". 
84 STAT. ] 
PUBLIC LAW 91-258-MAY 21, 1970 
249 
(5) Section 6416(b)(2)(H) is amended by inserting "begin- 
Hl'sc e^iei 
ning before July 1, 1970," after "during any calendar quarter". 
(6) Section 6416(b) (2) (I) is amended by inserting "before 
July 1,1970," after "used or resold for use". 
(7) Section 6416(b) (2) (J) is amended by inserting "before 
July 1,1970," after "used or resold for use". 
(8) Section 6675 is amended— 
79 stat^'iag.' 
(A) by striking out "GASOLINE" in the heading of such 
section and insertmg in lieu thereof "FUELS"; 
(B) by striking out "or" before "6424" in subsection (a), 
and by inserting after "motor vehicles)" in such subsection 
", or 6427 (relatmg to fuels not used for taxable purposes)"; 
and 
(C) by striking out "or 6424" in subsection (b)(1) and 
inserting in lieu thereof "6424, or 6427". 
(9) Sections 7210, 7603, and 7604j and the first sentence of sec- ^^^SA stat. 854, 
tion 7605^a) are each amended by mserting "6427(e) (2)," after 
"6424(d) (2),". The second sentence of section 7605(a) is amended 
by striking out "or 6424(d)(2)" and inserting in lieu thereof 
"•6424(d) (2), or 6427(e) (2)". 
(10) The table of sections for subpart A of part IV of subchap-
ter A of chapter 1 is amended by inserting ", special fuels," after 
"gasoline" in tlie item relating to section 39. 
(11) The table of sections for subchapter A of chapter 63 is 
amended by striking out "and 6424" in the item relating to section 
6206 and inserting in lieu thereof "6424, and 6427". 
(12) The table of sections for subchapter B of chapter 65 is 
amended by adding at the end thereof the following new item: 
"Sec. 6427. Fuels not used for taxable purposes." 
(13) The table of sections for subchapter B of chapter 68 is 
amended by striking out "gasoline" in the item relating to section 
6675 and inserting in lieu thereof "fuels". 
(e) HIGHWAY TRUST FUND AMENDMENTS.—Subsection (f) of sec-
tion 209 of the Highway Kevenue Act of 1956 (23 U.S.C., sec. 120 
note) is amended— 
70 stat. 399. 
(1) by inserting at the end of paragraph (3) the following new 
sentence: "This paragraph shall not apply to amounts estimated 
by the Secretary of the Treasury as paid under sections 6420 
and 6421 of such Code with respect to gasoline used after June 30, 
^"'^' P- ^'*^-
1970, in aircraft." ; 
(2) by striking out "GASOLINE AND LUBRICATING OIL" in the 
heading of paragraph (6) and inserting in lieu thereof "GASO- 
79 stat. les. 
LINE, SPECIAL FUELS, AND LUBRICATING OIL" ; 
(3) by striking out "(relating to credit for certain uses of 
gasoline and lubricating oil) with respect to gasoline and lubri-
cating oil" in the first sentence of paragraph (6) and inserting in 
lieu thereof " (relating to credit for certain uses of gasoline, special 
fuels, and lubricating oil) with respect to gasoline, special fuels, 
and lubricating oil" ; 
(4) by adding at the end of paragraph (6) the following new 
sentence: "This paragraph shall not apply to amounts estimated 
by the Secretary of the Treasury as attributable to the use after 
June 30, 1970, of gasoline and special fuels in aircrafts."; and 
(5) by adding after 
paragraph 
(6) the following new 
paragraph: 
"(7) 
TRANSFERS FROM TRUST FUND FOR NONTAXABLE USES OF 
FUELS.—The Secretary of the Treasury shall pay from time to 
time from the Trust Fund into the general fund of the Treasury 
amounts equivalent to the amounts paid before July 1,1973, under 
250 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
Ante. p. 246. 
sectioii 6427 of the Internal Revenue Code of 1954 (relating to 
fuels not used for taxable purposes) on the basis of claims filed 
for fuels used before October 1, 1972. This paragraph shall not 
apply to amounts estimated by the Secretary of the Treasury as 
paid under such section 6427 with respect to fuels used in 
aircraft." 
SEC. 208. AIRPORT AND AIRWAY TRUST FUND. 
(a) CREATION or TRUST FUND.—There is established in the Treasury 
of the United States a trust fund to be known as the "Airport and 
Airway Trust Fund" (hereinafter in this section referred to as the 
"Trust Fund"), consisting of such amounts as may be appropriated 
or credited to the Trust Fund as provided in this section. 
(b) TRANSFER TO TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN 
TAXES.—There is hereby appropriated to the Trust Fund— 
(1) amounts equivalent to the taxes received in the Treasury 
after June 30, 1970, and before July 1, 1980, under subsections 
Ante, p. 237. 
((.) aiid (d) of sectlou 4041 (taxes on aviation fuel) and under 
239"2^43^^ 
' 
sections 4261, 4271, and 4491 (taxes on transportation by air and 
on use of civil aircraft) of the Internal Revenue Code of 1954; 
(2) amounts determined by the Secretary of the Treasury to be 
equivalent to the taxes received in the Treasury after June 30, 
6
8
A Stat. 483; 
1970 and bcfore July 1,1980, under section 4081 of such Code, with 
26 use 4081. 
respect to gasoline used m aircraft; and 
(3) amounts determined by the Secretary of the Treasury to 
be equivalent to the taxes received in the Treasury after June 30, 
1970, and before July 1, 1980, under paragraphs (2) and (3) of 
75'star\'24**' 
sectiou 4071(a) of such Code, with respect to tires and tubes of 
the types used on aircraft. 
The amounts appropriated by paragraphs (1), (2), and (3) shall 
be transferred at least quarterly from the general fund of the Treasury 
to the Trust Fund on the basis of estimates made by the Secretary of 
the Treasury of the amounts referred to in paragraphs (1), (2), and 
(3) received in the Treasury. Proper adjustments shall be made in 
the amounts subsequently transferred to the extent prior estimates 
were in excess of or less than the amounts required to be transferred. 
(c) TRANSFER OF TTNEXPENDED FUNDS.—At the close of June 30, 
1970, there shall be transferred to the Trust Fund all unexpended 
funds which have been appropriated before July 1, 1970, out of the 
general fund of the Treasury to meet obligations of the United 
States (1) described in subparagraph (B) or (C) of subsection (f) (1) 
of this section, or (2) incurred under the Federal Airport Act (49 
60 Stat. 170. 
U.S.C, sec. 1101 etseq.). 
(d) 
ArpROPRiATioN OF ADDITIONAL SUMS.—There are hereby 
authorized to be ajipropriated to the Trust Fund such additional sums 
as may be required to make the expenditures referred to in subsection 
(f) of this section. 
(e) MANAGEMENT OF TRUST FUND.— 
Report to 
(1) REPORT.—It shall be the duty of the Secretary of the 
Treasury to hold the Trust Fund, and (after consultation with 
the Secretary of Transportation) to report to the Congress each 
year on the financial condition and the results of the operations 
of the Trust Fund during the preceding fiscal year and on its 
expected condition and operations during the next five fiscal 
years. Such report shall be printed as a House document of the 
session of the Congress to which the report is made. 
Congress. 
40 Stat. 288. 
31 u s e 774. 
84 STAT. ] 
PUBLIC LAW 91-258-^AY 21, 1970 
251 
(2) INVESTMENT.— 
(A) I N GENERAL.—It shall be the duty of the Secretary of 
the Treasury to invest such portion of the Trust Fund as is 
not, in his judgment, required to meet current withdrawals. 
Such investments may be made only in interest-bearing obli-
gations of the L'nited States or in obligations guaranteed as 
to both principal and interest by the L"'nited States. For such 
purpose, such obligations may be acquired (i) on original 
issue at the issue price, or (ii) by purchase of outstanding 
obligations at the market price. The purposes for which 
obligations of the United States may be issued under the 
Second Liberty Bond Act, as amended, are hereby extended 
to authorize the issuance at par of special obligations exclu-
sively to the Trust Fund. Such special obligations shall bear 
interest at a rate equal to the average rate of interest, com-
puted as to the end of the calendar month next preceding 
the date of such issue, borne by all marketable interest-bear-
ing obligations of the L^nited States then forming a part of 
the Public Debt; except that where such average rate is not 
a multiple of one-eighth of 1 percent, the rate of interest 
of such special obligations shall be the multiple of one-eighth 
of 1 percent next lower than such average rate. Such special 
obligations shall be issued only if the Secretary of the 
Treasury determines that the purchase of other interest-
bearing obligations of the Ignited States, or of obligations 
guaranteed as to both principal and interest by the United 
States on original issue or at the market price, is not in the 
j)ubHc interest. 
(B) SALE OF OBLIGATIONS.—Any obligation acquired by the 
Trust Fund (except special obligations issued exclusively to 
the Trust Fund) may be sold by the Secretary of the Treasury 
at the market price, and such special obligations may be 
redeemed at par plus accrued interest. 
(C) INTEREST ON CERTAIN PROCEEDS.—The interest on, and 
the proceeds from the sale or redemption of, any obligations 
held in the Trust Fund shall be credited to and form a part 
of the Trust Fund. 
(3) APPLICABILITY OF PARAGRAPH (2).—Paragraph (2) of this 
subsection shall not apply until the beginning of the fiscal year 
immediately following the first fiscal year beginning after June 
30,1970, in which the receipts of the Trust Fund under subsection 
(b) exceed 80 percent of the expenditures from the Trust Fund 
under subsection (f) (1). 
(f) EXPENDITURES FROM TRUST FUND.— 
(1) x^iRPORT AND AIRWAY PROGRAM.—Amouuts in the Trust Fund 
shall be available, as provided by appropriation Acts, for making 
expenditures after June 30, 1970, and before July 1,1980, to meet 
those obligations of the United States— 
(A) hereafter incurred under title I of this Act (as in effect 
on the date of the enactment of this Act), or incurred at any 
time before July 1, 1970, under the Federal Airport Act (49 
U.S.C., sec. 1101 et seq.); 
eo stat. i7o 
(B) heretofore or hereafter incurred under the Federal 
Aviation Act of 1958, as amended (49 ILS.C, sec. 1301 et 
seq.), which are attributable to planning, research and ^2 stat. 731 
Ante, p. 219. 
252 
PUBLIC LAW 91-258-MAY 21, 1970 
[84 STAT. 
development, construction, or operation and maintenance 
of— 
(i) air traffic control, 
(ii) air navigation, 
(iii) communications, or 
(iv) supporting services, 
for the airway system; or 
(C) for those portions of the administrative expenses of 
the Department of Transportation which are attributable 
to activities described in subparagraph (A) or (B). 
(2) 
TRANSFERS FROM TRUST FUND ON ACX^OUNT OF CERTAIN 
REFUNDS.—The Secretary of the Treasury shall pay from time to 
time from the Trust Fund into the general fund of the Treasury 
amounts equivalent to— 
(A) the amounts paid after June 30,1970, and before July 
1, 1980, in respect of fuel used in aircraft, under sections 
70 Stat. 87; 
(5420 (relating to amounts paid in respect of gasoline used 
Ant's.'p. 241. 
on farms), 6421 (relating to amounts paid in respect of 
gasoline us€d for certain nonhighway purposes), and 6427 
(relating to fuels not used for taxable purposes) of the 
^"'^' P- 246. 
Internal Revenue Code of 1954, and 
Ante, p. 245. 
(B) the amouuts paid under section 6426 of such Code 
(relating to refund of aircraft use tax where plane transports 
for hire m foreign air commerce), 
on the basis of claims filed for periods beginning after June 30, 
1970. 
(3) TRANSFERS FROM TRUST FUND ON ACCOUNT or CERTAIN SEC-
TION 39 CREDITS.—The Secretary of the Treasury shall pay from 
time to time from the Trust Fund into the general fund of the 
Treasury amounts equivalent to the credits allowed under section 
Ante, p. 248. 
39 of tlie Internal Revenue Code of 1954 with respect to fuel used 
in aircraft during taxable years ending after June 30, 1970, and 
beginning before July 1, 1980, and attributable to use after 
June 30, 1970, and before July 1, 1980, Such amounts shall be 
transferred on the basis of estimates by the Secretary of the 
Treasury, and proper adjustments shall be made in amounts 
subsequently transferred to the extent prior estimates were in 
excess of or less than the credits allowed. 
(g) HIGHWAY TRUST FUND AMENDMENT.—Sub'='ection (c) of section 
70 Stat. 397. 
209 of the Highway Revenue Act of 1956 (23 U.S.C., sec. 120 note) 
is amended by adding at the end thereof the following new paragraph: 
" (5) ADJUSTMENTS FOR AVIATION USES.—The pirountp defcribefl 
in paragraphs (1) (A) and (3) (A) with respect to any period 
shall (before the application of this subsection) be reduced by 
appropriate amounts to reflect any amounts transferred to the 
Airport and Airway Trust Fund under section 208(b) of the 
Ante, p. 250. 
Airport aiid Airway Revenue Act of 1970 with respect to such 
period. The amounts described in paragraphs (1)(E) and (3) 
(C) with respect to any period shall (before the application of 
this subsection) be reduced by appropriate amounts to reflect any 
amounts transferred to the Airport and Airway Trust Fund 
under section 208(b)(3) of the Airport and Airway Revenue 
Act of 1970 with respect to such period." 
SEC. 209. INVESTIGATION AND REPORT TO CONGRESS. 
(a) 
STUDY AND INVESTIGATION.—The Secretary of Transportation 
is hereby authorized and directed, in cooperation with such other 
Federal officers and agencies as may be designated by the President 
and through full consultation with and consideration of the views 
of the users of the system, to make a study and investigation to make 
84 STAT. ] 
PUBLIC LAW 91-259-MAY 21, 1970 
253 
available to the Congress information on the basis of which it may 
determine what revisions, if any, of the taxes imposed by the United 
States should be made in order to assure, insofar as practicable, an 
equitable distribution of the tax burden among the various classes 
of persons using the airports and airways of the United States or 
otherwise deriving benefits from such airports and airways. 
(b) REPORTS.—The Secretary of Transportation shall report to the 
Congress the results of the study and investigation required by subsec-
tion (a). The final report shall be made as soon as possible but in no 
event later than March 1,1972. On or before March 1,1971, the Secre-
tary of Transportation shall report to the Congress the progress that 
has been made in carrying out the study and investigation required by 
subsection (a). Each such report shall be printed as a House document 
of the session of the Congress to which the report is made. In addition, 
the Secretary of Transportation shall identify the costs to the Federal 
Government that should appropriately be charged to the system and 
the value to be appropriately assigned to the general public benefit, 
(c) FUNDS FOR STUDY AND INVESTIGATION.—Tliere are hereby 
authorized to be appropriated out of the Airport and Airway Trust 
Fund such sums as may be necessary to enable the Secretary of Trans-
portation to carry out the provisions of this section. 
SEC. 210. APPLICATION OF CERTAIN OTHER TAX PROVISIONS. 
(a) Nothing in this title or in any other law of the United States 
shall prevent the application of sections 104 through 110 of title 4 of 
the United States Code to civil airports owned by the United States. 
(b) Subsection (a) shall not apply to— 
(1) sales or use taxes in respect of fuels for aircraft or in respect 
of other servicing of aircraft, or 
(2) taxes, fees, head charges, or other charges in respect of the 
landing or taking off of aircraft or aircraft passengers or freight, 
(c) In the case of any lease in effect on September 28, 1969, subsec-
tion (a) shall not authorize the levy or collection of any tax in respect 
of any transaction occurring, or any service performed, pursuant to 
such lease before the expiration of such lease (determined without 
regard to any renewal or extension of such lease made after Septem-
ber 28,1969), For purposes of the preceding sentence, the term "lease" 
includes a contract, 
SEC. 211. EFFECTIVE DATES. 
(a) GENERAL RULE.—Except as provided in subsection (b), the 
amendments made by this title shall take effect on July 1,1970. 
(b) EXCEPTIONS,—The amendments made by sections 203 and 204 
shall apply to transportation beginning after June 30, 1970. The 
amendments made by subsections (a), (b), and (c) of section 207 shall 
apply with respect to taxable years ending after June 30, 1970. 
Approved May 21, 1970, 
Reports to 
Congress. 
Appropriations. 
61 Stat. 644; 
70 Stat. 799. 
'Lease.' 
Public Law 91-259 
AN ACT 
To provide for the disposition of judgment funds of the Confederated Tribes 
of the Umatilla Indian Reservation. 
May 21, 1970 
[H. R. 9477] 
Be it enacted hy tlie Senate and House of RepreHentatires of the 
United States of Amenca 
in Congress assembled. Tliat the entire T
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unexpended balance of funds that were appropriated by the Act of umatiiia Reserva-
May 13, 1966 (80 Stat. 141) to pay a judgment by tlie Indian Claims ''"j^J^gment funds 
disposition.