Airport and Airway Safety and Capacity Expansion Act of 1987
PL 100-223 (H.R.2310), enacted 12/30/1987

101 STAT. 1486 
PUBLIC LAW 100-223—DEC. 30, 1987 
Public Law 100-223 
100th Congress 
An Act 
Dec. 30, 1987 
[H.R. 2310] 
Airport and 
Airway Safety 
and Capacity 
Expansion Act of 
1987. 
Transportation. 
49 u s e app. 2201 
note. 
To amend the Airport and Airway Improvement Act of 1982 for the purpose of 
extending the authorization of appropriations for airport and airway improve-
ments, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
'Airport and 
(a) SHORT TITLE.—This Act may be cited as the 
Airway Safety and Capacity Expansion Act of 1987". 
0)) TABLE OF CONTENTS.— 
Sec. 1. Short title and table of contents. 
Sec. 2. Secretary and Administrator defined. 
TITLE I—AIRPORT AND AIRWAY IMPROVEMENT ACT AMENDMENTS 
Sec. 101. Amendment of Airport and Airway Improvement Act of 1982. 
Sec. 102. Declaration of policy. 
Sec. 103. Definitions. 
Sec. 104. National airport and airway system plans. 
Sec. 105. Authorization of appropriations. 
Sec. 106. Apportionment of funds. 
Sec. 107. Limitations on uses of funds. 
Sec. 108. State sponsorship. 
Sec. 109. Project sponsorship. 
Sec. 110. Grant agreements. 
Sec. 111. Project costs. 
Sec. 112. Limitation on powers. 
Sec. 113. Part-time operation of flight service stations. 
Sec. 114. Explosive detection K-9 teams. 
Sec. 115. Denial of funds for projects using products or services of foreign countries 
that deny fair market opportunities. 
Sec. 116. State block grant pilot program. 
TITLE n—FEDERAL AVIATION ACT AMENDMENTS 
Sec. 201. Amendment of Federal Aviation Act of 1958. 
Sec. 202. Essential air service. 
Sec. 203. Aircraft collision avoidance systems. 
Sec. 204. Civil penalties. 
Sec. 205. Indemnification of Federal Aviation Administration employees. 
Sec. 206. Hazards to safe and efficient air commerce and the preservation of naviga-
ble airspace and airport traffic capacity. 
Sec. 207. Public aircraft defined. 
TITLE m—MISCELLANEOUS PROVISIONS 
Sec. 301. Noise abatement. 
Sec. 302. Air traffic controller workforce. 
Sec. 303. Safety rulemaking proceedings. 
Sec. 304. Inflation adjustment on collection of certain aviation fees. 
Sec. 305. Amendments to the National Driver Register Act. 
Sec. 306. Low activity level I air traffic control tower contract program. 
Sec. 307. Eligibility of Dermott, Arkansas, municipal airport. 
Sec. 308. Standards for navigational aids. 
Sec. 309. Long-term airport capacity needs. 
Sec. 310. Radio navigation sjrstems. 
Sec. 311. Reporting of accidents to NTSB. 
Sec. 312. Atlantic City Airport. 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1487 
Sec. 313. Release of certain conditions. 
Sec. 314. Flight service station in Juneau, Alaska. 
Sec. 315. Grand Canyon Airport. 
TITLE IV—EXTENSION OF AVIATION-RELATED TAXES AND AIRPORT AND 
AIRWAY TRUST FUND SPENDING AUTHORITY 
Sec. 401. Short title. 
Sec. 402. 3-year extension of aviation-related taxes. 
Sec. 403. Extension of Airport and Airway Trust Fund spending authority. 
Sec. 404. Exemption for certain emergency medical transportation by helicopter. 
Sec. 405. Reduction in aviation-related taxes where appropriations are significantly 
below authorizations. 
SEC. 2. SECRETARY AND ADMINISTRATOR DEFINED. 
49 USC app. 2202 
As used in this Act— 
(1) the term "Secretary" means the Secretary of Transpor-
tation; and 
,^ 
(2) the term "Administrator" means the Administrator of the 
Federal Aviation Administration. 
TITLE I—AIRPORT AND AIRWAY 
IMPROVEMENT ACT AMENDMENTS 
SEC. 101. AMENDMENT OF AIRPORT AND AIRWAY IMPROVEMENT ACT OF 
1982. 
Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Airport and 
Airway Improvement Act of 1982 (49 U.S.C. App. 2201-2225). 
SEC. 102. DECLARATION OF POLICY. 
(a) 
COMPREHENSIVE 
AIR SPACE 
PLAN.—Section 
502(a)(4) is 
49 USC app. 
amended— 
2201. 
(1) by inserting ", a vertical visual guidance system," after 
"precision approach system"; and 
(2) by inserting "distance-to-go signs for each primary and 
/ 
secondary runway, a surface movement radar system at each 
category III airport, a taxi 
way lighting and sign system," after 
"vertical guidance on all runways,". 
(b) CARGO HUB AIRPORTS.—Section 502(a) is amended— 
(1) by redesignating paragraphs (7), (8), and (9) as paragraphs 
(8), (9), and (10), respectively; and 
(2) by inserting after paragraph (6) the following new 
paragraph: 
"(7) cargo hub airports play a critical role in the movement of 
commerce through the airport and airway system and appro-
priate provisions should be made to facilitate the development 
and enhancement of such airports;". 
(c) INCREASING AIRPORT CAPACITY; NONAVIATION USE OF AIRSPACE; 
LIMITATION ON ARTIFICIAL RESTRICTIONS ON AIRPORT CAPACITY.— 
Section 502(a) is amended— 
(1) by striking out "and" at the end of paragraph (9), as 
redesignated by subsection (b); 
(2) by striking out the period at the end of paragraph (10), as 
so redesignated, and by inserting in lieu thereof a semicolon; 
and 
101 STAT. 1488 
PUBLIC LAW 100-223—DEC. 30, 1987 
(3) by adding at the end thereof the following new paragraphs: 
"(11) airport construction and improvement projects which 
increase the capacity of facilities to accommodate passenger and 
cargo traffic, thereby increasing safety and efficiency and reduc-
ing delays, should be undertaken to the maximum feasible 
extent; 
"(12) it is in the national interest to ensure that nonaviation 
usage of navigable airspace be accommodated but not allowed to 
decrease the safety and capacity of the airspace and airport 
system; and 
"(13) artificial restrictions on airport capacity are not in the 
public interest and should not be imposed to alleviate air traffic 
delays unless other reasonably available and less burdensome 
alternatives have first been attempted.". 
49 use app. 1348 
(d) SENSE OF CONGRESS.—It is the sensc of Congress that any 
note. 
regulation under which the Administrator limits the number of 
instrument flight rule takeoffs and landings of aircraft at certain 
airports should be phsised out and eliminated at the earliest prac-
ticable date the Administrator finds that such phaseout or elimi-
nation is consistent with aviation safety. 
SEC. 103. DEFINITIONS. 
49 use app. 
(a) INCLUSION OF HELIPORTS AS AIRPORTS.—Section 503(aXl) is 
2202. 
amended— 
(1) by inserting "(A)" before "means"; £ind 
(2) by inserting "; and (B) includes any heliport" before the 
period at the end thereof. 
(b) ACQUISITION OF FIRE FIGHTING EQUIPMENT AS AIRPORT DEVEL-
OPMENT.—Section 503(aX2XB) is amended— 
(1) by striking out "or" at the end of clause (iv); 
(2) by striking out "and" at the end of clause (v) and inserting 
in lieu thereof "or"; and 
(3) by adding at the end thereof the following new clause: 
"(vi) fire fighting and rescue equipment at any air-
port which serves scheduled passenger operations of air 
carrier aircraft designed for more than 20 psissenger 
seats; and". 
(c) LANDED WEIGHT DEFINED.—Section 503(a) is amended— 
(1) by redesignating paragraphs (9) through (24), and any 
references thereto, as paragraphs (10) through (25); and 
(2) by inserting after paragraph (8) the following new 
paragraph: 
"(9) 'Landed weight' means the weight of aircraft providing 
scheduled and nonscheduled service of only property (including 
mail) in intrastate, interstate, and foreign air transportation, as 
shall be determined by the Secretary pursuant to such regula-
tions £is the Secretary may prescribe.'. 
(d) INCLUSION OF CERTAIN INTERNATIONAL PASSENGERS AS PAS-
SENGERS ENPLANED.—Paragraph (10) of section 503(a), as redesig-
nated by subsection (c), is amended by inserting before the period at 
the end thereof the following: "and includes passengers on board 
international flights which transit an airport located in the 48 
contiguous States for nontraffic purposes". 
(e) DEFINITION OF PRIMARY AIRPORT.—Paragraph (12) of section 
503(a), as redesignated by subsection (c), is amended by striking out 
".01 percent" and all that follows through the period at the end 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1489 
thereof and inserting in lieu thereof the following: "more than 
10,000 passengers enplaned annually.", 
(f) CONFORMING AMENDMENT.—Section 101(1) of the Aviation 
Safety and Noise Abatement Act of 1979 (49 U.S.C. App. 2101(1)) is 
amended by striking out section "503(17)" and inserting in lieu 
thereof "503(18)". 
SEC. 104. NATIONAL AIRPORT AND AIRWAY SYSTEM PLANS. 
(a) REVIEW OF PLAN.— 
(1) IN GENERAL.—Section 504(a) is amended— 
49 USC app. 
(A) by inserting "(1) PUBUCATION, CONTENTS, AND REVIEW 
^^^^ 
OF PLAN.—" before "Not later than two"; and 
(B) by adding at the end thereof the following new 
paragraph: 
"(2) SPECIAL REVIEW.—As soon as feeisible following the date 
of the enactment of this paragraph, the Secretary shall, in 
reviewing and revising the plan, take into account tall struc-
tures which reduce safety or airport capacity and make every 
reasonable effort to address the legitimate needs of air cargo 
' 
operations, STOL/VSTOL aircraft operations, and rotary wing 
aircraft operations.". 
(2) 
CONFORMING 
AMENDMENT.—Such 
section is 
further 
amended by indenting paragraph (1), as designated by 
paragraph (1)(A) of this subsection, and aligning such para-
graph (1) with paragraph (2), as added by paragraph (1)(B) of 
this subsection. 
O
t
)
) STUDY OF SPECIAL USE AIRSPACE.— 
(1) IN GENERAL.—Section 504(d) is amended by striking out 
paragraphs (2) and (3) and inserting in lieu thereof the following 
new paragraph: 
"(2) SPECIAL USE AIRSPACE.— 
"(A) REVIEW.—The Secretary and the Secretary of De-
fense, in consultation with aviation users, shall jointly 
conduct a national review of the need and utilization of 
special use airspace with a view to determining its impact 
on civil aviation operations and on the quality of the 
environment. 
• < -
"(B) REPORT.—Not later than 18 months after the date of 
the enactment of the Airport and Airway Safety and Capac-
ity Expansion Act of 1987, the Secretary and the Secretary 
of Defense shall report to Congress the results of the review 
conducted under subparagraph (A), together with their 
recommendations.". 
(2) CONFORMING AMENDMENTS.—Section 504(d) is further 
amended— 
(A) in paragraph (1) by inserting "CIVIL USE OF DOMESTIC 
MILITARY AIRPORTS.—" before "The Department"; and 
(B) by indenting paragraph (1) and aligning such para-
graph with paragraph (2), as inserted by paragraph (1) of 
this subsection. 
SEC. 105. AUTHORIZATION OF APPROPRIATIONS. 
(a) 
AIRWAY 
FACILITIES AND EQUIPMENT.—Section 
506(a) is 
49 use app. 
amended— 
2205. 
(1) by redesignating paragraph (2) (and any reference thereto) 
as paragraph (3); and 
101 STAT. 1490 
PUBLIC LAW 100-223—DEC. 30, 1987 
(2) by striking out "For the purposes o f and all that follows 
through "remain available until expended." and inserting in 
lieu thereof the following: 
"(1) GENERAL AUTHORIZATION.—For the purposes of acquiring, 
establishing, and improving air navigation facilities under sec-
tion 307(b) of the Federal Aviation Act of 1958 (49 U.S.C. App. 
1348(b)), there are authorized to be appropriated from the Trust 
Fund for fiscal years beginning after September 30,1981, aggre-
gate amounts not to exceed $6,327,000,000 for fiscal years 
ending before October 1, 1987, $7,704,000,000 for 
fiscal 
years ending before October 1, 1988, $9,434,000,000 for fiscal 
years ending before October 1, 1989, and $11,625,200,000 for 
fiscal years ending before October 1, 1990. Amounts appro-
priated under this subsection shall remain available until 
expended. 
"(2) PURCHASE AND INSTALLATION OF INSTRUMENT LANDING 
SYSTEMS.— 
"(A) MINIMUM OBLIGATION LEVEL.—Of amounts made 
available under paragraph (1) after September 30, 1987, the 
Secretary shall obligate not less than $27,000,000 in fiscal 
year 1988, $30,000,000 in fiscal year 1989, and $35,000,000 in 
fiscal year 1990 for the purposes of purchasing and install-
ing instrument landing systems at airports under section 
307(b) of the Federal Aviation Act of 1958. 
"(B) PRIMARY AND RELIEVER AIRPORTS.—75 percent of 
amounts obligated pursuant to subparagraph (A) in a fiscal 
year shall be made available for the purchase and installa-
tion of instrument landing systems at primary airports and 
reliever airports. 
"(C) OTHER AIRPORTS.—25 percent of amounts obligated 
pursuant to subparagraph (A) in a fiscal year shall be made 
aveiilable for the purchsise and installation of instrument 
landing systems at airports other than primary airports 
and reliever airports.", 
(b) RESEARCH, ENGINEERING AND DEVELOPMENT, AND DEMONSTRA-
TIONS.— 
49 use app. 
(1) IN GENERAL.—Section 506(b) is amended to read as follows: 
2205. 
"(b) RESEARCH, ENGINEERING AND DEVELOPMENT, AND DEMONSTRA-
TIONS.— 
"(1) DEMONSTRATION PROJECTS.—The Secretary is authorized 
to carry out under section 312 of the Federal Aviation Act of 
1958 (49 U.S.C. App. 1353) such demonstration projects as the 
Secretary determines necessary in connection with research 
and development activities under such section. 
"(2) GENERAL AUTHORIZATION.—For research, engineering and 
development, and demonstration projects £md activities under 
section 312 of the Federal Aviation Act of 1958 and paragraph 
(1) of this subsection, there is authorized to be appropriated 
from the Trust Fund— 
"(A) for fiscal year 1988— 
"(i) $127,192,000 solely for air traffic control projects 
and activities; 
"(ii) $7,743,000 solely for air traffic control advanced 
computer projects and activities; 
"(iii) $9,818,000 solely for navigation projects and 
activities; 
. 
. 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1491 
"(iv) $21,957,000 solely for aviation weather projects 
and activities; 
"(v) $6,307,000 solely for aviation medicine projects 
and activities of which not less than $250,000 shall be 
made available for research and development relating 
to equipment designed to provide improved access by 
handicapped persons to commercial aircraft; 
"(vi) $24,988,000 solely for aircraft safety projects and 
activities; and 
"(vii) $3,000,000 solely for environmental projects 
and activities; 
"(B) for fiscal year 1989— 
"(i) $135,866,000 solely for air traffic control projects 
and activities; 
"(ii) $15,716,000 solely for air traffic control advanced 
computer projects and activities; 
"(iii) $11,395,000 solely for navigation projects and 
activities; 
"(iv) $21,797,000 solely for aviation weather projects 
, ,>.;:i .
»
> 
and activities; 
"(v) $6,613,000 solely for aviation medicine projects 
and activities; 
"(vi) $21,013,000 solely for aircraft safety projects and 
activities; and 
"(vii) $2,600,000 solely for environmental projects 
and activities; and 
"(C) for fiscal year 1990, $222,000,000. 
"(3) AUTHORITY TO TRANSFER FUNDS.— 
"(A) UNLIMITED.—Funds may be transferred among the 
projects and activities listed in paragraph (2), except that 
the net funds transferred to or from any category of such 
projects and activities listed in paragraph (2) in any fiscal 
year may not exceed 10 percent of the amount authorized 
for such category by paragraph (2) for such fiscal year. 
"(B) AFTER NOTICE.—In addition, the Secretary may pro-
pose transfers to or from any category of projects and 
activities listed in paragraph (2) exceeding 10 percent of the 
amount authorized for such category. An explanation of the 
proposed transfer must be transmitted in writing to the 
Committee on Science, Space, and Technology and the 
Committee on Appropriations of the House of Representa-
tives and the Committee on Commerce, Science, and 
Transportation and the Committee on Appropriations of 
the Senate. The proposed transfer may be made only 
when— 
"(i) 30 calendar days have passed after transmission 
of such explanation; or 
"(ii) each such Committee has transmitted to the 
Secretary written notice that such Committee has no 
objection to the proposed transfer. 
"(4) FUNDING FOR ENHANCING AIRPORT CAPACITY.— 
"(A) GENERAL RULE.—Notwithstanding any other provi-
sion of this subsection, of funds made available under para-
graph (2) in each of fiscal years 1988, 1989, and 1990, not 
less than $25,000,000 per fiscal year is authorized to be 
appropriated for research and development on preserving 
and enhancing airport capacity (including research and 
91-194 O - 90 - 7 : QL.3 Part 3 
101 STAT. 1492 
PUBLIC LAW 100-223—DEC. 30, 1987 
I development on improvements to airport design standards, 
airport maintenance, airport safety, airport operations, and 
* airport environmental concerns) under section 312 of the 
Federal Aviation Act of 1958. 
"(B) REPORT.—Not later than 60 days after the last day of 
each of fiscal years 1988, 1989, and 1990, the Administrator 
of the Federal Aviation Administration shall transmit to 
i the Committee on Science, Space, and Technology and the 
Committee on Public Works and Transportation of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on 
expenditures made by the Administrator for research and 
development under subparagraph (A) in such fiscal year. 
"(5) PERIOD OF AVAILABILITY.—Amounts appropriated under 
this subsection shall remain available until expended.". 
49 use app. 2205 
(2) EFFECTIVE DATE.—The amendment made by paragraph (1) 
note. 
shall take effect October 1,1987. 
(c) OTHER EXPENSES.— 
49 use app. 
(1) GENERAL LIMITATIONS.—Section 506(c) is amended by 
2205. 
adding at the end thereof the following new paragraph: 
"(3) FISCAL YEARS 1988-1990.— 
"(A) 
MAXIMUM 
AMOUNT 
APPROPRIATED.—Subject 
to 
^ subparagraph (B) of this paragraph, the amount appro-
priated from the Trust Fund for the purposes of clauses (A) 
' and (B) of paragraph (1) of this subsection for each of fiscal 
years 1988, 1989, and 1990 may not exceed 50 percent of the 
amount of funds made available under section 505 and 
^ subsections (a) and O
t
>
) of this section for such fiscal year. 
"(B) REDUCTION IN MAXIMUM AMOUNT.—The maximum 
amount which may be appropriated from the Trust Fund 
I for the purposes of clauses (A) and (B) of paragraph (1) for 
t any fiscal year, as determined under subparagraph (A) of 
', this paragraph, shall be reduced by an amount equal to 2 
times the excess, if any, o
f
— 
"(i) $3,278,000,000 in the case of fiscal year 1988, 
: 
$3,445,000,000 in the case of fiscal year 1989, 
: 
$3,863,000,000 in the case of fiscal year 1990, 
$3,770,000,000 in the case of fiscal year 1991, and 
: 
$3,778,000,000 in the case of fiscal year 1992, over 
"(ii) the amount made available under section 505 
I 
and subsections (a) and (b) of this section for such fiscal 
f 
year. 
"(C) INCREASE IN MAXIMUM AMOUNT.—Subject to subpara-
graph (D), the amount authorized to be appropriated from 
the Trust Fund under this paragraph for any fiscal year 
shall be increased by an amount equal to 2 times the excess, 
if any, o
f
— 
, 
"(i) the amount made available under section 505 and 
subsections (a) and (b) of this section for such fiscal 
year, over 
"(ii) the portion of the amount authorized under such 
section and subsections for such fiscal year which was 
not authorized for any previous fiscal year. 
"(D) LIMITATION ON INCREASES.—The aggregate amount of 
. increases in the amount authorized to be appropriated from 
the Trust Fund under this paragraph may not exceed the 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1493 
aggregate amount of reductions made under subparagraph 
(B) of this paragraph.". 
(2) LIMITATION ON FUNDING FOR WEATHER SERVICES.—Section 
506(d) is amended— 
49 USC app. 
(A) by striking out "$26,700,000" and all that follows 2205. 
through "1986; and"; and 
(B) by inserting before the period at the end thereof the 
following: "and $30,000,000 per fiscal year for each of fiscal 
years 1988,1989, and 1990". 
(d) LIMITATION ON USES OF TRUST FUND.— 
(1) FUNDING OF AIRPORT IMPROVEMENT PROGRAM.—Section 
506(eXl) is amended by inserting "and section 505" before the 
period. 
(2) EXTENSION.—Section 506(eX5) is amended by striking out 
"1987" and inserting in lieu thereof "1992". 
(e) AIRPORT DEVELOPMENT AND PLANNING.—Section 505(a) is 49 use app. 
amended by striking out the second sentence and inserting in lieu 2204. 
thereof the following: "The eiggregate amounts which shall be avail-
able after September 30, 1981, to the Secretary for such grants and 
for grants for airport noise compatibility planning under section 
103(b) of the Aviation Safety and Noise Abatement Act of 1979 and 
for carrying out noise compatibility programs or parts thereof under 
section 104(c) of such Act shall be $5,116,700,000 of which 
$475,000,000 shall be credited to the supplementary discretionary 
fund established by section 507(aX3XB) for fiscal years ending before 
October 1, 1987, $6,816,700,000 for fiscal years ending before Octo-
ber 1, 1988, $8,516,700,000 for fiscal years ending before October 1, 
1989, $10,216,700,000 for fiscal years ending before October 1, 1990, 
$12,016,700,000 for fiscal years ending before October 1, 1991, and 
$13,816,700,000 for fiscal years ending before October 1, 1992.". 
(f) 
DISADVANTAGED 
BUSINESS 
ENTERPRISES.—Section 
505 
is 
amended by adding at the end thereof the following new subsection: 
"(d) DISADVANTAGED BUSINESS ENTERPRISES.— 
"(1) GENERAL RULE.—Except to the extent that the Secretary 
determines otherwise, not less than 10 percent of the amounts 
made available under subsection (a) in a fiscal year beginning 
after September 30,1987, shall be expended with small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals. 
"(2) DEFINITIONS.—For purposes of this subsection— 
"(A) SMALL BUSINESS CONCERN.—The term 'small business 
concern' has the meaning such term has under section 3 of 
.,^ 
the Small Business Act (15 U.S.C. 632); except that such 
term shall not include any concern or group of concerns 
controlled by the same socially and economically disadvan-
taged individual or individuals which has average annual 
fross receipts over the preceding 3 fiscal years in excess of 
14,000,000, as adjusted by the Secretary for inflation. 
"(B) 
SOCIALLY 
AND 
ECONOMICALLY 
DISADVANTAGED 
INDIVIDUALS.—The term 'socially and economically dis-
advantaged individuals' has the meaning such term has 
under section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) and relevant subcontracting regulations promul-
gated pursuant thereto; except that women shall be pre-
sumed to be socially and economically disadvantaged for 
purposes of this subsection. 
101 STAT. 1494 
PUBLIC LAW 100-223—DEC. 30, 1987 
•
> 
"(3) 
ANNUAL LISTING OF DISADVANTAGED BUSINESS ENTER-
PRISES.—Each State or airport sponsor shall annually survey 
i^ and compile a list of the small business concerns referred to in 
q,, 
paragraph (1) and the location of such concerns in the State. 
c2 ,^v 
"(4) UNIFORM CERTIFICATION.—The Secretary shall establish 
minimum uniform criteria for State governments and airport 
sponsors to use in certifying whether a concern qualifies for 
purposes of this subsection. Such minimum uniform criteria 
shall include but not be limited to on-site visits, personal inter-
views, licenses, analysis of stock ownership, listing of equip-
ment, analysis of bonding capacity, listing of work completed, 
resume of principal owners, financial capacity, and type of work 
preferred.". 
49 use app. 
(g) CONFORMING AMENDMENTS.—(1) Section 506(a) is further 
2205. 
amended— 
(A) in paragraph (3), as redesignated by subsection (a)(1) of 
this section, by inserting "SITE PREPARATION WORK.—" before 
"The costs of; and 
(B) aligning such paragraph (3) with paragraph (1), as inserted 
by subsection (a)(2) of this section. 
(2) Section 506(c) is further amended— 
(A) in paragraph (1) by inserting "DESCRIPTION.—" before 
"The balance"; 
(B) in paragraph (2) by inserting "FISCAL YEARS 1982-1987.—" 
before "The amount appropriated"; and 
, 
(C) by indenting paragraph (1) and aligning such paragraph 
and paragraph (2) with paragraph (3) of such section, as added 
by subsection (c) of this section. 
(3) Section 506(e)(2) is amended by striking out "and (d) and the 
third sentence of section (c)" and inserting in lieu thereof "(c), and 
(d)". 
(h) SPECIAL RULE FOR HAWAII.—Notwithstanding any other provi-
sion of law, funds made available to the State of Hawaii under 
section 505 of the Airport and Airway Improvement Act of 1982 may 
be used to acquire properties referred to as areas 46A and 46B of the 
United States General Services Administration Facility Site in 
Moanalua, Honolulu, Oahu, Hawaii, or to reimburse the State of 
Hawaii for such acquisition. 
SEC. 106. APPORTIONMENT OF FUNDS. 
(a) GENERAL RULES.—Section 507 is amended to read as follows: 
49 u s e app. 
"SEC. 507. APPORTIONMENT OF FUNDS. 
pone 
"(a) APPORTIONMENT.—On the first day of each fiscal year for 
which any amount is authorized to be obligated for the purposes of 
section 505 of this title, the amount made available for the fiscal 
year under such section and not previously apportioned shall be 
apportioned by the Secretary as follows: 
"(1) PRIMARY AIRPORTS.—To the sponsor of each primary air-
port, as follows: 
"(A) $7.80 for each of the first 50,000 passengers enplaned 
at the airport; 
"(B) $5.20 for each of the next 50,000 passengers enplaned 
at the airport; 
"(C) $2.60 for each of the next 400,000 passengers en-
planed at the airport; and 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1495 
"(D) $0.65 for each additional passenger enplaned at the 
airport. 
"(2) CARGO SERVICE AIRPORTS.—To the sponsors of airports 
which are served by aircraft providing air transportation of only 
property (including mail) with an aggregate annual landed 
weight in excess of 100,000,000 pounds, 3 percent of the amount 
made available under section 505 for such fiscal year (but not to 
exceed $50,000,000) as follows: In the proportion which the 
aggregate annual landed weight of all such aircraft landing at 
each such airport bears to the total aggregate annual landed 
weight of all such aircraft landing at all such airports. 
"(3) STATES.—To the States, 12 percent of the amount made 
available under section 505 for such fiscal year, as follows: 
"(A) INSULAR AREAS.—For airports, 1 percent of such 
amounts to Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, the Trust Territory of the 
Pacific Islands, and the Virgin Islands. 
"(B) STATES.—For airports, other than primary airports 
and airports described in section 508(d)(3), ¥2 of the remain-
ing 99 percent in the proportion which the population of 
each State (other than a State to which subparagraph (A) 
applies) bears to the total population of all such States and 
Vz of the remaining 99 percent in the proportion which the 
area of each such State bears to the total area of all such 
States. 
'(b) SPECIAL RULES.— 
"(1) MAXIMUM AND MINIMUM AMOUNTS FOR PRIMARY AIR-
PORTS.—The Secretary shall not apportion less than $300,000 
nor more than $16,000,000 under subsection (a)(1) to an airport 
sponsor for any primary airport for any fiscal year. 
"(2) LIMITATION ON TOTAL APPORTIONMENTS TO PRIMARY AND 
CARGO SERVICE AIRPORTS.— 
"(A) GENERAL RULE.—In no event shall the total amount 
of all apportionments under subsections (a)(1) and (a)(2) for 
any fiscal year exceed 49.5 percent of the amount au-
thorized to be obligated for such fiscal year for the purposes 
of section 505 of this title. 
"(B) DISTRIBUTION.—In any case in which apportionments 
in a fiscal year would be reduced by subparagraph (A), the 
Secretary shall for such fiscal year reduce the apportion-
ment to each sponsor of an airport under subsections (a)(1) 
and (a)(2) proportionately so that such 49.5 percent amount 
is achieved. 
"(3) EFFECT OF OBLIGATION CEILING ON PRIMARY AND CARGO 
SERVICE APPORTIONMENTS.— 
"(A) OVERALL LIMIT.—If any Act of Congress has the 
effect of limiting or reducing the amount authorized or 
available to be obligated for any fiscal year for the purposes 
of section 505 of this title, the total amount of all apportion-
ments under subsections (a)(1) and (a)(2) for such fiscal year 
shall not exceed 49.5 percent of such limited or reduced 
amount. 
"(B) DISTRIBUTION.—In any case in which apportionments 
in a fiscal year would be reduced by subparagraph (A), the 
Secretary shall for such fiscal year reduce the apportion-
ment to each sponsor of an airport under subsections (a)(1) 
Guam. 
American 
Samoa. 
Northern 
Mariana Islands. 
Trust Territory 
of the Pacific 
Islands. 
Virgin Islands. 
101 STAT. 1496 
PUBLIC LAW 100-223—DEC. 30, 1987 
and (a)(2) proportionately so that such 49.5 percent amount 
is achieved. 
"(4) MAXIMUM PERCENTAGE OF APPORTIONMENTS TO ANY CARGO 
SERVICE AIRPORT.—The Secretary shall not apportion to the 
sponsor of any airport more than 8 percent of the total amount 
of apportionments under subsection (a)(2) for any fiscal year. 
"(5) TREATMENT OF ALASKA.— 
"(A) 
APPORTIONMENT FORMULA.—Notwithstanding 
any 
other provision of subsection (a), for any fiscal year for 
which funds are made available under section 505 of this 
title the Secretary may apportion funds for airports in the 
0,i 
State of Alaska in the same manner in which funds were 
apportioned in fiscal year 1980 under section 15(a) of the 
Airport and Airway Development Act of 1970. 
"(B) MINIMUM APPORTIONMENT.—In no event shall the 
total amount apportioned for such airports under this para-
^1.. 
graph for any fiscal year be less than the minimum 
,
, . 
amounts that were required to be apportioned to such 
airports in fiscal year 1980 under section 15(a)(3)(A) of such 
Act. 
' •
" 
"(C) HOLD HARMLESS.—In no event shall a primary air-
• 
port be apportioned less under this paragraph for a fiscal 
year than it would be apportioned for such fiscal year under 
, ,, , 
subsection (a)(1). 
"(D) EXPENDITURES AT COMMERCIAL SERVICE AIRPORTS.—In 
no event shall the amount of funds apportioned under this 
paragraph which are expended at any commercial service 
airport in the State of Alaska during a fiscal year exceed 
110 percent of the amount apportioned to such airport for 
such fiscal year. 
"(E) DISCRETIONARY FUNDING.—Nothing in this para-
'"'^ 
graph shall be construed as prohibiting the Secretary from 
making additional project grants to airports in the State of 
Alaska from the discretionary fund established by subsec-
tion (c). 
"(6) ELIGIBILITY.— 
"(A) 
ALASKA.—Notwithstanding 
subsection 
(a)(3)(B), 
funds apportioned under such subsection for airports in the 
State of Alaska may be made available by the Secretary for 
public airports described in section 508(d)(3)(C) in such 
State. 
"(B) PUERTO RICO.—Notwithstanding subsection (a)(3)(B), 
i' 
funds apportioned under such subsection for airports in the 
Commonwealth of Puerto Rico may be made available by 
the Secretary for primary airports and airports described in 
section 508(d)(3) in such Commonwealth. 
Grants. 
"(c) DISCRETIONARY FUND.— 
"(1) ESTABLISHMENT.—Subject to section 508(d) and paragraph 
(2) of this subsection any amounts— 
"(A) which are made available for a fiscal year under 
section 505, 
' 
"(B) which have not been previously apportioned by the 
Secretarv, and 
1- 
"(C) wnich are not apportioned under subsections (a) and 
(b)(5) of this subsection, 
shall constitute a discretionary fund to be distributed at the 
discretion of the Secretary. Such discretionary fund shall be 
•:qi. 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1497 
used for making grants for any of the purposes for which funds 
are made available under section 505 as the Secretary considers 
most appropriate for carrying out the purposes of this title. 
"(2) LEVEL OF FUNDING FOR PRESERVING AND ENHANCING 
CAPACITY, SAFETY, AND SECURITY.—Subject to section 508(d) and 
paragraph (4) of this subsection, not less than 75 percent of the 
funds in the discretionary fund pursuant to paragraph (1) and 
distributed by the Secretary under this subsection in a fiscal 
^ ,
^ ; 
j * 
year beginning after September 30, 1987, shall be used for 
"' t;^' 
making grants for any of the following purposes: preserving and 
enhancing capacity, safety, and security at primary airports and 
reliever airports and carrying out airport noise compatibility 
planning and programs at primary airports and reliever 
airports. 
»'•' ' . ';* 
"(3) SELECTION CRITERIA.—In selecting projects for grants de-
scribed in paragraph (2) for preserving and enhancing capacity 
•
• ' '' . 
at airports, the Secretary shall consider each proposed project s 
effect on overall national air transportation system capacity, 
project benefit and cost, and the financial commitment of the 
airport operator or other non-Federal funding sources to pre-
serve or enhance airport capacity. 
11« -
"(4) LIMITATION.—If the Secretary determines that the Sec-
retary will not be able to comply with the percentage require-
ment established by paragraph (2) in any fiscal year because the 
number of qualified applications submitted in compliance with 
this title is insufficient to meet such percentages, the portion of 
funds which the Secretary determines will not be so distributed 
shall be available for obligation during such fiscal year without 
regard to such requirement. 
"(d) CALENDAR YEAR AS BASIS FOR DETERMINING CERTAIN APPOR-
TIONMENTS.— 
"(1) PASSENGERS ENPLANED.—For purposes of determining 
apportionments for any fiscal year under subsection (a)(1), the 
number of passengers enplaned at an airport shall be based on 
the number of passengers enplaned at such airport during the 
preceding calendar year. 
"(2) LANDED WEIGHT.—For purposes of determining apportion-
ments for any fiscal year under subsection (a)(2), the landed 
weight of aircraft landing at an airport referred to in subsection 
(a)(2) shall be based on the landed weight of aircraft landing at 
such airport and all such airports during the preceding calendar 
, 
year. 
^ 
' 
"(e) DEFINITIONS.—As used in subsection (a)(3)— 
"(1) POPULATION.—The term 'population' means the popu-
lation according to the latest decennial census of the United 
States. 
"(2) AREA.—The term 'area' includes both land and water.", 
(b) CONFORMING AMENDMENTS.— 
(1) SECTION 505.—Section 505(a) is amended by striking out 49 USC app. 
"sections 507(a)(1), (2), (3)(A), or" and inserting in lieu thereof 2204. 
"sections 507(a)(1), 507(a)(2), 507(a)(3), 507(c), and". 
(2) SECTION 508.—Section 508 is amended— 
49 use app. 
(A) in subsection (a) by striking out "paragraph (1), (2), or 2207. 
(4) of section 507(a)" and inserting in lieu thereof "subsec-
tion (a) or (b)(5) of section 507"; 
(B) in subsection (a) by striking out "507(a)(3)" and insert-
ing in lieu thereof "507(c)"; 
101 STAT. 1498 
PUBLIC LAW 100-223—DEC. 30, 1987 
• 
(C) in subsection (c) by striking out "507(aX2)" each place 
it appears and inserting in lieu thereof "507(a)(3)"; 
(D) in subsection (d)(3) by striking out "paragraph (4) of 
section 507(a)" and inserting in lieu thereof "section 
507(b)(5)"; and 
(E) in subsection (e)(1) by striking out "507(a)" and insert-
ing in lieu thereof "507(a) or 507(b)(5)". 
49 use app. 
(3) SECTION 509.—Section 509 is amended— 
2208- 
(A) in subsection (a)(2) by striking out "507(a)" and insert-
ing in lieu thereof "507"; and 
(B) in subsection (e) by striking out "507(a)(1)" and insert-
^, 
ing in lieu thereof "507(aXl) or 507(aX2)". 
49 use app. 
" 
(4) SECTION 512.—Section 512(a) is amended by striking out 
2211- 
"507(aXl)" and inserting in lieu thereof "507(aXl) or 507(aX2)". 
49 u s e app. 
(5) SECTION 513.—Section 513(b) is amended— 
2212. 
(A) in paragraph (2) by striking out "507(aX3)" and insert-
ing in lieu thereof "507(c)"; and 
(B) in paragraph (4) by striking out "507(a)" and inserting 
in lieu thereof "507(a) or 507(bX5)". 
49 use app. 2204 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
^°^- 
take effect October 1, 1987, and apply to fiscal years beginning on 
and after such date. 
49 u s e app. 
SEC. 107. LIMITATIONS ON USES OF FUNDS. 
2207 
(a) NOISE COMPATIBIUTY PLANNING AND PROGRAMS.—Section 
508(dX2) is amended by striking out "8 percent" and inserting in lieu 
thereof "10 percent". 
(b) REDUCTION IN SET ASIDE FOR SMALL AIRPORTS.—Section 
508(dX3) is amended by striking out "5.5 percent" each place it 
appears and inserting in lieu thereof "2.5 percent". 
(c) INTEGRATED AIRPORT SYSTEM PLANNING.—Section 508(dX4) is 
amended by striking out "one percent" and inserting in lieu thereof 
"Va of 1 percent". 
(d) CONFORMING AMENDMENT,—Section 508(dX2) is amended— 
(1) by striking out "(A)"; and 
(2) by striking out ", and (B) in the case of fiscal year 1982, for 
any of the purposes set forth in section 505(c) of this title". 
SEC. 108. STATE SPONSORSHIP. 
49 use app. 
Section 509(a) is amended by adding at the end thereof the 
2208. 
following new paragraph: 
"(3) STATE SPONSORSHIP.—Nothing in this title shall preclude 
a State from submitting, £is sole sponsor, a project application 
under this title for an airport development project benefitting 2 
or more airports in the State or airport planning for similar 
projects at 2 or more airports in the State i
f
— 
"(A) the sponsors of such airports consent in writing to 
State sponsorship of such projects or planning; 
"(B) the Secretary is satisfied that there is administrative 
; 
> <'.• 
merit and aeronautical benefit to State sponsorship of such 
^ •- r 
projects or planning; and 
f 
"(C) an acceptable agreement exists to ensure compliance 
by the State with appropriate grant conditions and other 
assurances required by the Secretary.", 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1499 
SEC. 109. PROJECT SPONSORSHIP. 
(a) 
NONDISCRIMINATION 
ASSURANCE.—Section 
511(a)(1)(A) 
is 
49USCapp. 
amended— 
2210. 
(1) by inserting "with respect to facilities directly and 
substantially related to providing air transportation" after "and 
other charges"; 
(2) by striking out "and combined passenger and cargo flights 
or all cargo flights," and inserting in lieu thereof "and signatory 
carriers and nonsignatory carriers,"; 
(3) by inserting "or signatory" after "or status as tenant"; and 
(4) by striking out "on tenant air carriers," and inserting in 
lieu thereof "on air carriers in such classification or status,". 
(b) APPROVAL OF NONAERONAUTICAL CLOSING OF AIRPORTS.—Sec-
tion 511(a)(3) is amended by inserting before the semicolon at the 
end thereof the following: ", and any proposal to temporarily close 
the airport for nonaeronautical purposes must first be approved by 
the Secretary". 
(c) TERMINAL AIRSPACE ASSURANCE.—Section 511(a)(4) is amended 
to read as follows: 
"(4) appropriate action will be taken to assure that such 
terminal airspace as is required to protect instrument and 
visual operations to the airport (including established minimum 
flight altitudes) will be adequately cleared and protected by 
removing, lowering, relocating, marking, or lighting or other-
wise mitigating existing airport hazards and by preventing the 
establishment or creation of future airport hazards;". 
(d) REVENUE ASSURANCE.—Section 511(a)(12) is amended to read as 
follows: 
"(12) all revenues generated by the airport, if it is a public Taxes. 
airport, and any local taxes on aviation fuel (other than taxes in 
«
. 
effect on the date of the enactment of the Airport and Airway 
Safety and Capacity Expansion Act of 1987) will be expended for 
the capital or operating costs of the airport, the local airport 
system, or other local facilities which are owned or operated by 
the owner or operator of the airport and directly and substan-
tially related to the actual air transportation of passengers or 
property; except that if covenants or assurances in debt obliga-
tions issued before September 3, 1982, by the owner or operator 
of the airport, or provisions enacted before September 3,1982, in 
the governing statutes controlling the owner or operator's 
financing, provide for the use of the revenues from any of the 
airport owner or operator's facilities, including the airport, to 
support not only the airport but also the airport owner or 
operator's general debt obligations or other facilities, then this 
limitation on the use of all other revenues generated by the 
airport (and, in the case of a public airport, local taxes on 
aviation fuel) shall not apply;". 
(e) DISPOSAL OF LAND ASSURANCES.—Section 511(a) is amended by 
striking out paragraph (13) and inserting in lieu thereof the follow-
ing new paragraphs: 
"(13) if the airport operator or owner receives a grant before, 
on, or after the date of the enactment of this paragraph for the 
purchase of land for airport noise compatibility purposes— 
"(A) the owner or operator will, when the land is no 
longer needed for such purposes, dispose of such land at fair 
market value at the earliest practicable time; 
101 STAT. 1500 
PUBLIC LAW 100-223—DEC. 30, 1987 
"(B) such disposition will be subject to the retention or 
,, 
. 
reservation of any interest or right therein necessary to 
' " •, t 
ensure that such land will only be used for purposes which 
are compatible with noise levels associated with the oper-
•
^
'
1 
. ation of the airport; and 
"(C) that portion of the proceeds of such disposition which 
is proportionate to the United States share of the cost of 
acquisition of such land will, at the discretion of the 
Secretary— 
"(i) be paid to the Secretary for deposit in the Trust 
Fund; or 
"(ii) be reinvested in an approved noise compatibility 
project as prescribed by the Secretary; 
"(14) if the airport operator or owner receives a grant before, 
on, or after the date of the enactment of this paragraph for the 
purchase of land for airport purposes (other than noise compat-
'•-' ibility purposes)— 
'(A) the owner or operator will, when the land is no 
" 
longer needed for airport purposes, dispose of such land at 
fair market value; 
"(B) such disposition will be subject to the retention or 
reservation of any interest or right therein necessary to 
ensure that such land will only be used for purposes which 
are compatible with noise levels associated with the oper-
ation of the airport; and 
"(C) that portion of the proceeds of such disposition which 
is proportionate to the United States share of the cost of 
acquisition of such land will be paid to the Secretary for 
deposit in the Trust Fund;". 
49 use app. 
(f) AIRPORT LAYOUT PLAN ASSURANCE.—Section 511(a) is further 
2210. 
amended by adding at the end thereof the following new paragraph: 
"(15) the airport owner or operator will keep up to date at all 
times a layout plan of the airport which meets the following 
requirements: 
"(A) the plan will be in a form prescribed by the 
Secretary; 
"(B) before the plan and an amendment, revision, or 
modification thereof may take effect, the plan, amendment, 
revision, or modification will be submitted to, and receive 
approval of, the Secretary; 
'(C) the owner or operator will not make or permit any 
changes or alterations in the airport or in any of its facili-
ties which are not in conformity with the airport layout 
plan as approved by the Secretary and which might, in the 
opinion of the Secretary, adversely affect the safety, utility, 
or efficiency of the airport; 
"XD) if a change or alteration in the siirport or its facilities 
is made which the Secretary determines adversely affects 
' i 
the safety, utility, or efficiency of any federally own«d, 
leased, or funded property on or off the airport and which is 
not in conformity with the airport layout plan as approved 
r 
, 
by the Secretary, the owner or operator will, if requested by 
the Secretary— 
"(i) eliminate such adverse effect in a manner ap-
proved by the Secretary; or 
"(ii) bear all costs of relocating such property (or 
replacement thereof) to a site acceptable to the Sec-
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1501 
retary and all costs of restoring such property (or 
?i 
" 
replacement thereof) to the level of safety, utility, effi- 
'^ ^ 
ciency, and cost of operation existing before the un-
approved change in the airport or its facilities;". 
(g) ASSURANCE RELATING TO CONTRACTING FOR ENGINEERING AND 
DESIGN SERVICES.—Section 511(a) is further amended by adding at 
the end thereof the following new paragraph: 
"(16) each contract or subcontract for program management, 
construction management, planning studies, feasibility studies, 
architectural 
services, 
preliminary 
engineering, 
design, 
engineering, surveying, mapping, or related services with re-
spect to the project will be awarded in the same manner as a 
' 
' •
? 
contract for architectural and engineering services is negotiated 
under title IX of the Federal Property Administrative Services 
Act of 1949 or an equivalent qualifications-based requirement 
. <i ; j . 
prescribed for or by the sponsor of the airport; and", 
(h) ASSURANCE RELATING TO DISADVANTAGED BUSINESS ENTER-
PRISES.—Section 511(a) is further amended by adding at the end 
thereof the following new paragraph: 
"(17) the airport owner or operator will take such action as 
may be necessary to ensure that, to the maximum extent 
practicable, at least 10 percent of all businesses at the airport 
which sell food, beverages, printed materials, or other consumer 
products to the public are small business concerns (as defined by 
the Secretary by regulation) owned and controlled by socially 
and economically disadvantaged individuals (as defined under 
section 505(d)(2)(B)).". 
(i) USE OF STATE TAXES ON AVIATION FUEL.—Section 511 is further 
amended by adding at the end thereof the following new subsection: 
"(d) USE OF STATE TAXES ON AVIATION FUEL.—Nothing in subsec-
tion (a)(12) of this section shall preclude the use of State taxes on 
aviation fuel to support a State aviation program or preclude use of 
airport revenue on or off the airport for noise mitigation purposes.". 
(j) USE OF LAND DISPOSAL FUNDS.—Section 511 is further amended 
by adding at the end thereof the following new subsection: 
"(e) USE OF LAND DISPOSAL FUNDS.— 
"(1) AIRPORT NOISE COMPATIBILITY LANDS.—Amounts deposited 
in the Trust Fund in accordance with subsection (a)(13) of this 
section shall be available to the Secretary for making grants for 
airport development and airport planning under section 505(a). 
Such amounts shall be in addition to amounts made available to 
the Secretary under section 505 and not subject to the appor-
tionment provisions of sections 507(a) and 507(b)(5). 
"(2) OTHER AIRPORT LANDS.—Amounts deposited in the Trust 
Fund in accordance with subsection (a)(14) of this section— 
"(A) shall be available to the Secretary for making grants 
at the discretion of the Secretary for the purposes described 
in section 507(c)(2) at primary airports and reliever airports; 
and 
"(B) shall be available to the Secretary for use in accord-
ance with section 507(a)(3) at other airports in the State in 
which the land disposition occurred under subsection 
(a)(14). 
Such amounts shall be in addition to amounts made available to 
the Secretary under section 505 and not subject to the appor-
tionment provisions of sections 507(a) and 507(b)(5).". 
101 STAT. 1502 
PUBLIC LAW 100-223—DEC. 30, 1987 
49USCapp. 
(k) PROCEDURES FOR MODIFYING ASSURANCES.—Section 511 is fur-
2210- 
ther amended by adding at the end thereof the following new 
subsection: 
"(f) PROCEDURES FOR MODIFYING ASSURANCES.—If the Secretary 
proposes to modify any assurance required of a person receiving a 
grant under this Act and in effect on or after the date of the 
enactment of this subsection or proposes to require compliance with 
any additional assurance from such person, the Secretary shall 
first— 
Federal 
"(1) publish notice of such proposal in the Federal Register, 
Register, 
^jj^j 
pu ica ion. 
«^2) provide an opportunity for comment on such proposal.". 
SEC. 110. GRANT AGREEMENTS. 
49 use app. 
(a) MAXIMUM OBLIGATION OF THE UNITED STATES.—Section 512(b) 
2211- 
is amended to read as follows: 
"(b) MAXIMUM OBLIGATION OF THE UNITED STATES.— 
"(1) GENERAL RULE.—Subject to paragraphs (2) and (3) of this 
subsection, when an offer is accepted in writing by a sponsor, 
the amount stated in the offer as the maximum obligation of the 
United States may not be increased. 
"(2) EXCEPTIONS FOR FISCAL YEARS 1987 AND BEFORE.—The 
maximum obligation of the United States under this subsection 
with respect to a project receiving assistance under a grant 
approved under this title on or before September 30, 1987, may 
be increased— 
"(A) by not more than 10 percent in the case of a project 
for airport development (other than a project for land 
acquisition); and 
"(B) by an amount not to exceed 50 percent of the total 
increase in allowable project costs attributable to an ac-
quisition of land or interests in land, based upon current 
credible appraisals. 
Any increase under this section may be paid only from funds 
recovered by the United States from other grants made under 
this title. 
"(3) EXCEPTIONS FOR FISCAL YEARS 1988 AND THEREAFTER.—The 
maximum obligation of the United States under this subsection 
with respect to a project receiving assistance under a grant 
approved under this title or the Aviation Safety and Noise 
Abatement Act of 1979 after September 30, 1987, may be in-
creased by not more than 15 percent in the case of a project for 
airport development.". 
(b) WoRKSCOPE.—Section 512 is amended by adding at the end 
thereof the following new subsection: 
"(d) WoRKSCOPE.—The Secretary may amend, with the consent of 
the grant recipient, a grant agreement entered into under this title 
to change the workscope of a project funded under such grant if such 
amendment does not result in any increase in the maximum obliga-
tion of the United States authorized under subsection (b) of this 
section.". 
(c) CONFORMING AMENDMENT.—Section 512(c) is amended by 
inserting "MAXIMUM OBLIGATION FOR GRANTS UNDER THE AIRPORT 
AND AIRWAY DEVELOPMENT OF 1970.—" before "Notwithstanding". 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1503 
SEC. 111. PROJECT COSTS. 
(a) AUTHORITY TO MODIFY CERTAIN LIMITATIONS ON EXPENDITURES 
FOR TERMINAL DEVELOPMENT.— 
(1) OBUGATION LIMITATION.—The first sentence of section 
513(bX2) is amended by striking out "Not more" and all that 
49 use app. 
follows through "60 percent" and inserting in lieu thereof "All 2212. 
or any portion". 
(2) MAXIMUM FEDERAL SHARE.—Section 513(bX5) is amended 
by striking out "50 percent" and inserting in lieu thereof "75 
percent". 
(b) COSTS NOT ALLOWED.—Section 513(c) is amended— 
(1) by striking out "or" the first place it appears; and 
(2) by inserting before the period at the end thereof the 
following: "; or (3) the cost of decorative landscaping or the 
provision or installation of sculpture or art works". 
(c) REIMBURSEMENT FOR CERTAIN ADVANCE EXPENDITURES.—Sec-
tion 513 is amended by adding at the end thereof the following new 
subsection: 
"(d) REIMBURSEMENT FOR CERTAIN ADVANCE EXPENDITURES.— 
"(1) LETTERS OF INTENT.— 
"(A) ANNOUNCEMENT OF INTENTION.—The Secretary is 
authorized to announce an intention to obligate for an 
airport development project (including formulation of the 
project) at a primary airport or a reliever airport under this 
subsection through the issuance of a letter of intent to the 
applicant. 
, > 
4: 
"(B) SCHEDULE OF REIMBURSEMENT.—Subject to the provi-
sions of this paragraph, a letter of intent issued under this 
paragraph shall establish a schedule under which the Sec-
retary will make pajmients under paragraph (2) of this 
subsection to the sponsor of the airport at which the airport 
development project will be carried out. 
"(C) LIMITATION ON PROJECTS EUGIBLE FOR ADVANCE FUND-
ING.—The provisions of this subsection only apply to an 
airport development project— 
"(i) regarding which the sponsor notifies the Sec-
retary of the sponsor's intent to carry out such project 
before commencement of such project; 
"(ii) which will be carried out in accordance with all 
applicable statutory and administrative requirements 
that would be applicable to the project if the project 
were being carried out with funds made available 
under this title; and 
"(iii) which the Secretary determines will result in a 
significant enhancement of system-wide airport capac-
ity and meets the criteria of section 507(cX3). 
Clause (i) shall not apply to a project which is commenced 
on or after November 20, 1987, and for which a letter of 
intent is signed under this subsection in the 90-day period 
beginning on the date of the enactment of this subsection. 
(D) LIMITATION ON EFFECT.—An action under subpara-
graph (A) shall not be deemed an obligation of the United 
States Government under section 1501 of title 31, United 
States Code, and a letter of intent issued under this para-
graph shall not be deemed to be an administrative commit-
ment for funding. 
101 STAT. 1504 
PUBLIC LAW 100-223—DEC. 30, 1987 
"(E) TREATMENT OF LETTER.—A letter of intent under this 
;, .p^ 
paragraph shall be regarded as an intention to obligate 
from future budget authority not to exceed an amount 
:: 
stipulated as the United States share of allowable project 
i 
e'; ; 
costs for the project under this subsection. No obligation or 
V ,Ct 
administrative commitment may be made pursuant to such 
a letter of intent except as funds are provided in authoriza-
K„» 
tion and appropriation Acts. 
! ^,f' 
"(F) LIMITATIONS ON AGGREGATE AMOUNT.—The total esti-
mated amount of future Federal obligations covered by all 
outstanding letters of intent under this paragraph shall not 
exceed the amount authorized to carry out section 505(a), 
less an amount reasonably estimated by the Secretary to be 
' i^ 
necessary for grants under section 505(a) which are not 
covered by a letter of intent. 
"(2) REIMBURSEMENT.—If the Secretary issues under para-
graph (1) a letter of intent to obligate funds for an airport 
development project (including formulation of the project) at a 
primary airport or reliever airport and if the sponsor of such 
airport proceeds with such project without the aid of funds 
under this title, the Secretary shall pay, as funds become avail-
able, the sponsor for the United States share of allowable 
project costs payable on account of such project in accordance 
with such letter of intent.". 
SEC. 112. LIMITATION ON POWERS. 
• 
49 use app. 
Section 519 is amended— 
2218. 
(1) by inserting "(a) GENERAL RULE.—" before "The Sec-
retary"; and 
(2) by adding at the end thereof the following new subsection: 
"(b) LIMITATIONS.— 
"(1) 
WITHHOLDING OF APPROVAL.—The Secretary may 
not 
withhold approval of a grant application for funds apportioned 
under sections 507(a)(1), 507(aX2), and 507(bX5) for a violation of 
an assurance or other requirement of this title unless— 
"(A) the Secretary provides the applicant with an oppor-
>e 
tunity for a hearing; and 
Jy i 
"(B) within 180 days after the date of such application or 
the date the Secretary first knows of such noncompliance, 
whichever is later, the Secretary makes a determination 
that the violation has occurred. 
"(2) WITHHOLDING OF PAYMENT.—The Secretary may not with-
hold a payment under any grant agreement entered into under 
this title for more than loO days after the date such payment is 
due— 
"(A) without providing the recipient of such payment 
with notice and an opportunity for a hearing; and 
"(B) without determining that the grant recipient has 
v^ 
violated such agreement. 
"(3) EXTENSION OF TIME LIMITS.—The time limits established 
by paragraphs (1) and (2) of this section may be extended— 
"(A) by mutual agreement of the Secretary and the grant 
applicant or recipient, as the case may be; or 
"(B) at the discretion of the hearing officer if the hearing 
officer determines that such extension is necessary as a 
result of a failure of the applicant or recipient to adhere to 
the hearing schedule established by such officer. 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1505 
"(4) JUDICIAL REVIEW.—A person ciggrieved by an order of the 
Secretary withholding (A) approval of a grant application under 
paragraph (1), and (B) a payment under a grant agreement 
under paragraph (2), may obtain review of the order by petition 
to the Court of Appeals for the District of Columbia Circuit or 
the court of appeals for the circuit in which the project is 
located. Such petition shall be Hied not later than 60 davs after 
the date on which the order is served on the petitioner.'. 
SEC. 113. PART-TIME OPERATION OF FLIGHT SERVICE STATIONS. 
Section 528 is amended to read as follows: 
"SEC. 528. PART-TIME OPERATION OF FLIGHT SERVICE STATIONS. 
49 USC app. 
2224 
"(a) GENERAL RULE.—On or after July 15, 1987, the Secretary 
shall not close, or reduce the hours of operation of, any flight service 
station in any area unless the service provided in such area after the 
closure of such station or during the hours such station is not in 
operation will be provided by an automated flight service station 
with model 1 or better equipment. 
"(b) RULE FOR CERTAIN CLOSED STATIONS.—As soon as practicable 
after the date of the enactment of the Airport and Airway Safety 
and Capacity Expansion Act of 1987, the Secretary shall reopen any 
flight service station closed between March 25, 1987, and July 14, 
1987, if the service provided in the area in which such station is 
located since the date of such closure has not been provided by an 
automated flight service station with model 1 or better equipment. 
The hours of operation for such station shall be the same as the 
hours of operation of such station on March 25, 1987. After reopen-
ing such station, the Secretary may only close or reduce the hours of 
operation of such station in accordance with subsection (a).". 
SEC. 114. EXPLOSIVE DETECTION K-9 TEAMS. 
49 USC app. 
Section 529 is amended— 
^
^
^
^ 
(1) in the flrst sentence by striking out "shall" and inserting 
in lieu thereof "may"; and 
(2) by striking out the second sentence. 
SEC. 115. DENIAL OF FUNDS FOR PROJECTS USING PRODUCTS OR SERV-
ICES OF FOREIGN COUNTRIES THAT DENY FAIR MARKET 
OPPORTUNITIES. 
The Airport and Airway Improvement Act of 1982 is £imended by 
adding at the end thereof the following new section: 
"SEC. 533. DENIAL OF FUNDS FOR PROJECTS USING PRODUCTS OR SERV- 
Commerce and 
ICES OF FOREIGN COUNTRIES THAT DENY FAIR MARKET 
trade. 
OPPORTUNITIES. 
^L^^^ ^PP 
"(a) IN GENERAL.— 
"(1) PROHIBITION ON FUNDING.—No funds made available 
under this Act may be used to fund any project which uses any 
product or service of a foreign country during any period in 
which such foreign country is listed by the United States Trade 
Representative under subsection (c). 
(2) LIMITATION ON APPUCABILITY.—Paragraph (1) shall not 
)ply with respect to the use of a product or service in a project 
the Secretary determines that— 
"(A) the application of paragraph (1) to such product, 
service, or project would not De in the public interest, 
2226. 
api 
ift 
101 STAT. 1506 
PUBLIC LAW 100-223—DEC. 30, 1987 
,.^. * 
"(B) products of the same class or kind as such product or 
service are not produced or offered in the United States, or 
in any foreign country that is not listed under subsection 
(c), in sufficient and reasonably available quantities and of 
a satisfactory quality, or 
"(C) exclusion of such product or service from the project 
would increase the cost of the overall project contract by 
more than 20 percent. 
"(b) DETERMINATIONS.— 
"(1) DEADLINE.—By no later than the date which is 30 days 
after the date on which each report is submitted to the Congress 
under section 181(b) of the Trade Act of 1974 (19 U.S.C. 2241(b)), 
' 
^\V'.t 
the United States Trade Representative shall make a deter-
mination with respect to each foreign country of whether or not 
such foreign country— 
"(A) denies fair and equitable market opportunities for 
products and suppliers of the United States in procurement, 
or 
"(B) denies fair and equitable market opportunities for 
United States bidders, 
for construction projects that cost more than $500,000 and are 
funded (in whole or in part) by the government of such foreign 
country, 
"(2) INFORMATION CONSIDERED.—In making determinations 
under paragraph (1), the United States Trade Representative 
shall take into account information obtained in preparing the 
report submitted under section 181 of the Trade Act of 1974 and 
such other information as the United States Trade Representa-
tive considers to be relevant. 
"(c) LISTING OF FOREIGN COUNTRIES.— 
^ ,,^ 
"(1) GENERAL RULE.—The United States Trade Representative 
I- 
shall maintain a list of each foreign country with respect to 
which an affirmative determination is made under subsection 
(b). 
"(2) REMOVAL FROM LIST.—Any foreign country that is added 
to the list maintained under paragraph (1) shall remain on the 
list until the United States Trade Representative determines 
that such foreign country does permit the fair and equitable 
market opportunities described in subparagraphs (A) and (B) of 
subsection (b)(1). 
Federal 
"(3) PUBLICATION.—The United States Trade Representative 
Register, 
shall annually publish in the Federal Register the entire list 
publication. 
required under paragraph (1) and shall publish in the Federal 
Register any modifications to such list that are made between 
annual publications of the entire list. 
"(d) SPECIAL RULES.— 
"(1) For purposes of this section, each foreign instrumentality, 
and each territory or possession of a foreign country, that is 
administered separately for customs purposes shall be treated 
as a separate foreign country. 
"(2) For purposes of this section, any article that is produced 
or manufactured (in whole or in substantial part) in a foreign 
country shall be considered to be a product of such foreign 
country. 
"(3) For purposes of this section, any service provided by a 
person that is a national of a foreign country, or is controlled by 
•iq'^ 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1507 
nationals of a foreign country, shall be considered to be a 
service of such foreign country.". 
SEC. 116. STATE BLOCK GRANT PILOT PROGRAM. 
The Airport and Airway Improvement Act of 1982 is further 
amended by adding at the end the following new section: 
"SEC. 534. STATE BLOCK GRANT PILOT PROGRAM. 
49 USC app. 
2227 
"(a) 
PROMULGATION OF REGULATIONS; EFFECTIVE PERIOD.—Not 
later than 180 days after the date of the enactment of this section, 
the Secretary shall promulgate regulations to implement a State 
block grant pilot program to become effective on October 1, 1989. 
Such program shall not be effective after September 30, 1991. Termination 
"Ot)) ASSUMPTION OF CERTAIN RESPONSIBILITIES.—Such regulations date. 
shall provide that the Secretary may designate not more than 3 
qualified States to assume administrative responsibility for all air-
port grant funding available under this title, other than funding 
which has been designated for use at primary airports. 
"(c) SELECTION OF STATE PARTICIPANTS.—The Secretary shall select 
States for participation in such program on the basis of applications 
submitted to the Secretary. The Secretary shall select a State only if 
—. Jr J 
the Secretary determines that the State— 
"(1) has an agency or organization capable of administering 
effectively any block grant made under this section; 
"(2) uses a satisfactory airport system planning process; 
"(3) uses a programming process acceptable to the Secretary; 
"(4) has agreed to comply with Federal procedural and other 
standard requirements for administering any such block grant; 
and 
"(5) has agreed to provide the Secretary with such program 
information as the Secretory may require. 
Before determining that any planning process is satisfactory or any 
programming process is acceptoble, the Secretory shall ensure that 
such process provides for meeting critical safety and security needs 
and that the programming process ensures that the needs of the 
national airport system will be addressed in deciding to which 
projects funds will be provided. 
'(d) REVIEW AND REPORT.—The Secretory shall conduct an on-
going review of the program estoblished under this section, and 
shall, not later than 90 dsnrs before its scheduled termination, report 
to Congress the results of such review, together with recommenda-
tions for further action relating to the program.". 
TITLE II—FEDERAL AVIATION ACT 
AMENDMENTS 
SEC. 201. AMENDMENT OF FEDERAL AVIATION ACT OF 1958. 
Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Federal 
Aviation Act of 1958 (49 U.S.C. App. 1301-1551). 
SEC. 202. ESSENTIAL AIR SERVICE. 
(a) FISCAL YEAR 1987.— 
101 STAT. 1508 
PUBLIC LAW 100-223—DEC. 30, 1987 
49USCapp. 
(1) TRANSFER OF OPERATIONAL AUTHORITY.—Section 419 
is 
1389- 
amended by adding at the end of subsection (a) the following 
new paragraph: 
"(12) If an air carrier which is providing on or after October 1, 
1987, essential air transportation under this subsection between an 
eligible point and an airport at which the Administrator limits the 
number of instrument flight rule takeoffs and landings of aircraft 
"^' 
?i 
provides notice to the Secretary of its intention to suspend, termi-
nate, or reduce such transportation and another air carrier is 
secured to provide such transportation on a continuing basis, the 
Secretary shall require the carrier suspending, terminating, or 
reducing such service to transfer any operational authority which 
such carrier has to conduct a landing or takeoff at such airport with 
respect to such service to the carrier secured to provide such service 
unless the carrier secured to provide such service does not need such 
authority or such authority is being used to provide air service with 
respect to more than 1 eligible point.". 
(2) TERMINATION DATE.—Section 419(g) is amended by striking 
out "the last day" and all that follows through the period at the 
end thereof and inserting in lieu thereof "September 30, 1988.". 
49 use app. 1389 
(3) EFFECTIVE DATE.—The amendments made by this subsec-
note. 
tion shall take effect October 1,1987. 
^i (b) FISCAL YEARS 1988-1998.— 
(1) GENERAL RULES.—Section 419 is amended to read as 
follows: 
"SEC. 419. SMALL COMMUNITY AIR SERVICE. 
"(a) EUGIBLE POINT DEFINED.—For the purposes of this section, 
the term 'eligible point' means any point in the United States— 
"(1) which is defined as an eligible point under this section as 
in effect before October 1, 1988, and which, at any time in the 
12-month period ending on such date, received scheduled air 
transportation, and 
"(2) which the Secretary determines is 45 highway miles or 
more from the nearest hub airport. 
State and local 
"(b) BASIC ESSENTIAL AlR SERVICE.— 
^ 
governments. 
"(1) LEVEL OF SERVICE.— 
i-. 
"(A) DETERMINATION FOR ESSENTIAL AIR SERVICE POINTS.— 
With respect to each eligible point for which a determina-
tion of what constitutes essential air transportation was 
.^: ^ 
made under this section before October 1, 1988, the Sec-
retary shall determine what is basic essential air service for 
such point. Such determination shall be made no later than 
the last day of the 1-year period beginning on the date of 
the enactment of the Airport and Airway Safety and Capac-
ity Expansion Act of 19o7 and only after consideration of 
the views of any interested community and the State 
agency of the State in which such community is located. 
"(B) DETERMINATION FOR OTHER POINTS.—With respect to 
0. 
each eligible point for which a determination of what con-
stitutes essential air transportation was not made before 
October 1,1988, the Secretary shall determine what is basic 
essential air service to such point if the Secretary receives 
notice that service to such point will be provided by only 1 
air carrier. Such determination shall be made no later than 
the last day of the 6-month period beginning on the date on 
which the Secretary receives such notice and only after the 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1509 
Secretary considers the views of any interested community 
and the State agency of the State in which such community 
is located. The Secretary may impose such notice require-
ments 
as 
may 
be 
necessary 
to 
implement 
this 
subparagraph. 
"(C) CONTINUATION OP REQUIREMENT; TRANSITION PROVI-
SIONS.—An air carrier required to provide essential air 
transportation before October 1, 1988, to an eligible point 
shall be required to continue to provide such transportation 
to such point after such date and the level of such transpor-
tation shall be deemed to be basic essential air service for 
purposes of this subsection until a determination is made 
under subparagraph (A) with respect to such point. The 
rate of compensation in effect for essential air transpor-
tation before such date shall continue in effect until a new 
rate is determined in accordance with the guidelines under 
subsection (f) of this section. 
"(D) REVIEW.—The Secretary shall periodically review 
the basic essential air service level for each eligible point, 
and may, based upon such review and consultations with 
the interested community and the State agency of the State 
in which such community is located, m£ike appropriate 
adjustments to the basic essential air service level. 
"(2) NOTICE REQUIRED BEFORE TERMINATION, SUSPENSION, OR 
REDUCTION IN SERVICE.—An air csirrier may not terminate, sus-
pend, or reduce air transportation to any eligible point below the 
level of basic essential air service established under paragraph 
(1) unless such air carrier has given the Secretary, the appropri-
ate State agency or agencies, and the communities affected at 
least 90 days notice before such termination, suspension, or 
reduction. 
"(3) DETERMINATION OF NEED FOR COMPENSATION.— 
"(A) SELECTION OF CARRIER.—Whenever the Secretary 
determines that basic essential air service will not be pro-
vided to an eligible point without compensation, the 
Secretary shall provide notice that applications may be sub-
mitted by any air carrier that is willing to provide such 
service to such point for compensation under this subsec-
tion. In selecting an applicant to provide basic essential air 
service to a point for compensation the Secretary shall, 
among other factors, consider— 
"(i) the applicant's demonstrated 
reliability in 
providing scheduled air service; 
"(ii) the contractual and marketing arrangements 
that the applicant has made with a larger air carrier to 
assure service beyond the hub airport; 
"(iii) the interline arrangements which the applic£int 
has made with a larger air carrier which allow pas-
sengers and cargo of the applicant at the hub airport to 
be transported by such large carrier through one res-
ervation, one ticket, and one baggage check-in; 
"(iv) the preferences of the actual and potential users 
of air transportation at the eligible point, giving 
substantial weight to the views of elected officials rep-
resenting such users; and 
"(v) with respect to any eligible point in the State of 
Alaska. 
Alaska, the experience of an applicant in providing 
101 STAT. 1510 
PUBLIC LAW 100-223—DEC. 30, 1987 
scheduled air service, or significant patterns of non-
scheduled air service pursuant to an 
exemption 
granted pursuant to section 416 of this title, in Alaska. 
"(B) RATE OF COMPENSATION.—The Secretary shall estab-
lish, in accordance with the guidelines promulgated under 
subsection (f), the rate of compensation to be paid for 
providing basic essential air service under this subsection. 
"(4) PAYMENT OF COMPENSATION.—The Secretary shall make 
payments of compensation under this subsection at times and in 
a manner determined by the Secretary to be appropriate. The 
Secretary shall continue to pay compensation to any air carrier 
to provide basic essential air service to an eligible point only for 
so long as the Secretary determines it is necessary in order to 
maintain basic essential air service to such point. 
"(5) REQUIREMENT TO CONTINUE SERVICE.—If an air carrier has 
provided notice to the Secretary under paragraph (2) of such air 
carrier's intention to suspend, terminate, or reduce service to 
any eligible point below the level of basic essential air service to 
such point, and if at the conclusion of the applicable period of 
notice the Secretary has not been able to find another air 
carrier to provide basic essential air service to such point, the 
Secretary shall require the carrier which provided such notice 
to continue such service to such point for an additional 30-day 
period, or until another air carrier has begun to provide basic 
essential air service to such point, whichever first occurs. If at 
the end of such 30-day period the Secretary determines that no 
other air carrier can be secured to provide basic essential air 
service to such eligible point on a continuing basis, either with 
or without compensation, then the Secretary shall extend such 
requirement for such additional 30-day periods (making the 
same determination at the end of each such period) as may be 
necessary to continue basic essential air service to such eligible 
point until an air carrier can be secured to provide basic 
essential air service to such eligible point on a continuing basis. 
"(6) COMPENSATION FOR CONTINUED SERVICE.— 
"(A) CARRIERS RECEIVING COMPENSATION.—If an air car-
rier (i) which is providing air transportation to any eligible 
point, and (ii) which is receiving compensation under this 
? 
subsection for providing such transportation, is required by 
the Secretary to continue service to such point beyond the 
:; 
date on which such carrier would, but for paragraph (5), be 
able to suspend, terminate, or reduce such service below the 
level of basic essential air service to such point, then after 
such date such carrier shall continue to receive such com-
pensation until the Secretary secures another air carrier to 
provide basic essential air service to such point or the 90th 
day following such date, whichever is earlier. If, after such 
90th day, the Secretary has not secured another air carrier 
to provide such service, the carrier required to continue to 
provide such service shall receive compensation in an 
s 
amount sufficient— 
"(i) to cover the carrier's fully allocated actual cost of 
performing the basic essential air service that was 
being provided at the time the 90-day notice of termi-
: *
r 
nation, suspension, or reduction of service is given to 
t:":\ ' - 
the Secretary under paragraph (2) plus a fair and 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1511 
reasonable return on investment which shall not be 
less than 5 percent of operating costs; and 
"(ii) to provide the carrier an additional return which 
recognizes the demonstrated additional lost profits 
from opportunities foregone and the likelihood that 
such lost profits increase £is the duration of the re-
quired basic essential air service increases. 
"(B) CARRIERS NOT RECEIVING COMPENSATION.—If the Sec-
retary requires an air carrier which is providing air 
transportation to an eligible point without compensation 
pursuant to paragraph (4) to continue to provide basic 
essential air service to such point beyond the 90-day notice 
period after which, but for paragraph (5) of this subsection, 
such air carrier would be able to suspend, terminate, or 
reduce service to such point below basic essential air service 
for such point, then the Secretary shall compensate such 
air carrier in an amount sufficient— 
"(i) to cover the carrier's fully allocated actual cost of 
performing the basic essential car service that was 
being provided at the time the 90-day notice of termi-
nation, suspension, or reduction of service is given to 
the Secretary under paragraph (2) plus a fair and 
reasonable return on investment which shall not be 
less than 5 percent of operating costs; and 
"(ii) to provide the carrier an additional return which 
recognizes the demonstrated additional lost profits 
from opportunities foregone and the likelihood that 
such lost profits increase as the duration of the re-
quired basic essential air service increases. 
"(7) TRANSFER OF OPERATIONAL AUTHORITY AT CERTAIN HIGH-
DENSITY AIRPORTS.—If an air carrier which is providing basic 
essential air service under this subsection between an eligible 
point and an airport at which the Administrator limits the 
number of instrument flight rule takeoffs and landings of air-
craft provides notice to the Secretary of its intention to suspend, 
terminate, or reduce such service and smother air carrier is 
secured to provide such service on a continuing basis, the 
Secretary shall require the carrier suspending, terminating, or 
reducing such service to transfer any operational authority 
which such carrier has to conduct a leuiding or takeoff at such 
airport with respect to such service to the carrier secured to 
provide such service unless the carrier secured to provide such 
service does not need such authority or such authority is being 
used to provide air service with respect to more than 1 eligible 
point, 
"(8) EFFORT TO SECURE CARRIERS.—During any period 
for 
which the Secretary requires an air carrier to continue provid-
ing air transportation to an eligible point which such air carrier 
has proposed to terminate, reduce, or suspend, the Secretary 
shall continue to make every effort to secure an air carrier to 
provide at least basic essential air service to such eligible point, 
on a continuing beisis. 
"(9) PROHIBITION ON CERTAIN REDUCTIONS IN SERVICE.—Unless 
the Secretary has determined what is basic essential air service 
for any eligible point pursuant to paragraph (1) of this subsec-
tion, the Secretary shall, upon petition of any appropriate 
representative of such point prohibit any termination, suspen-
101 STAT. 1512 
PUBLIC LAW 100-223—DEC. 30, 1987 
5 
sion, or reduction of air transportation which reasonably ap-
pears to deprive such point of basic essential air service, until 
the Secretary has completed such determination. 
State and local 
"(c) ENHANCED ESSENTIAL AlR SERVICE.— 
; 
governments. 
"(1) PROPOSAL.— 
Contracts. 
"(A) SUBMISSION.—A State or local government may 
submit a proposal to the Secretary for enhanced essential 
-iH 
air service to an eligible point with respect to which basic 
essential air service is being provided under subsection (b). 
"(B) CONTENTS.—A proposal submitted under this subsec-
tion shall specify the level and type of enhanced essential 
air service which the State or local government considers 
,. 
appropriate. Such proposal shall also include an agreement 
relating to compensation required for the proposed en-
£» 
hanced essential air service. Such agreement shall be sub-
it;, 
ject to the requirements of subparagraph (C). 
"(C) COMPENSATION AGREEMENT.—The agreement relat-
V 4 - r 
ing to compensation included in the proposal submitted by 
a State or local government under this subsection shall 
either— 
"(i) provide for the State or local government or any 
. . 
person to pay 50 percent of the compensation required 
si a ; 
for the proposed enhanced essential air service and for 
the Federal share of such compensation to be 50 per-
cent; or 
"(ii) provide for the Federal share for such compensa-
tion to be 100 percent and provide that, if the proposed 
service is not successful in terms of the criteria estab-
lished under paragraph (3)(C) for not less than a 2-year 
i: ' 
period, the eligible point shall not be eligible for air 
service for which compensation is payable by the Sec-
retary under this section. 
"(2) ESTABLISHMENT OF SERVICE.—Not later than 90 days after 
receiving a proposal under paragraph (1), the Secretary shall 
issue a decision on the proposal. The Secretary shall approve 
such proposal unless the Secretary determines that such pro-
posal is not reasonable. If the Secretary determines that such 
proposal is not reasonable, the Secretary shall disapprove such 
proposal and notify the State or local government submitting 
such proposal of such disapproval and the reasons therefor. 
"(3) REVIEW.— 
"(A) PROPOSALS FOR 50 PERCENT FEDERAL SHARE.—If the 
enhanced essential air service approved under this subsec-
tion is to be at a 50 percent Federal share, the Secretary 
shall periodically review the level and type of such service 
to an eligible point and may, based upon such review and 
consultations with the community and the government or 
person paying the non-Federal share, make appropriate 
adjustments to the level and type of enhanced essential air 
service to such point. 
"(B) PROPOSALS FOR lOO PERCENT FEDERAL SHARE.—If the 
enhanced essential air service approved under this subsec-
tion is to be at a 100 percent Federal share, the Secretary 
shall periodically review air service provided to an eligible 
point under this subsection. If the Secretary finds, after 
consultation with the State or local government which 
submitted the proposal, that such service has not been 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1513 
successful in terms of the criteria established under 
subparagraph (C) for not less than a 2-year period, such 
eligible point shall not be eligible for air service for which 
compensation is payable by the Secretary under this 
section. 
"(C) CRITERIA OF SUCCESS.—The Secretary shall establish, Regulations. 
by regulation, objective criteria for determining whether or 
. 
not enhanced essential air service to an eligible point pro-
vided under this subsection is successful in terms of increas-
ing passenger usage of the airport facilities at such point 
and reducing the amount of compensation provided by the 
Secretary under this subsection for such service. 
"(4) NOTICE BEFORE TERMINATION, SUSPENSION, OR REDUCTION 
OF SERVICE.—An air carrier may not terminate, suspend, or 
reduce air transportation to an eligible point for which a deter-
mination of enhanced essential air service has been made below 
the level of such service approved by the Secretary under this 
subsection unless such carrier has given the Secretary, the 
community affected, and the government or person paying the 
non-Federal share at least 30 days' notice before such termi-
nation, suspension, or reduction. Nothing in this paragraph 
relieves an air carrier of its obligations under subsection Ob). 
"(5) PAYMENT OF COMPENSATION.—The Secretary shall make 
payments of compensation under this subsection at times and in 
a manner determined by the Secretary to be appropriate. The 
Secretary shall continue to pay the compensation to an air 
carrier to provide enhanced essential air service to an eligible 
point only for so long as such carrier maintains the level of 
enhanced essential air service and the government or person 
agreeing to pay any non-Federal share continues to pay such 
share and only for so long as the Secretary determines it is 
necessary in order to maintain such service to such point. 
"(6) PAYMENT OF NON-FEDERAL SHARE.—The Secretary 
may 
require appropriate payment in advance or such other security 
to assure that non-Federal payments for enhanced essential air 
service under this subsection are made on a timely basis. 
"(7) COMPENSATION FOR ENHANCED ESSENTIAL AIR SERVICE DE-
FINED.—For purposes of this subsection, compensation for en-
hanced essential air service to an eligible point covers only 
those costs incurred for providing air service to such point 
which are in addition to the costs incurred for providing basic 
essential air service to such point under this section. 
"(d) COMPENSATION FOR SERVICE TO OTHER SMALL COMMUNITIES.— State and local 
"(1) PROPOSAL.—A State or local government may make a governments. 
proposal to the Secretary for compensated air transportation in 
accordance with this subsection to a point that is not an eligible 
point under this section. 
"(2) DETERMINATION OF ELIGIBIUTY.— 
"(A) DESIGNATION OF POINTS.—Not later than 90 days 
after the submission of a proposal under this subsection, the 
Secretary— 
/ 
"(i) shall determine whether or not to designate the 
point for which such proposal is made as eligible to 
receive compensation under this subsection; and 
"(ii) shall approve or disapprove such proposal and 
notify the State or local government submitting such 
proposal of such decision. 
101 STAT. 1514 
PUBLIC LAW 100-223—DEC. 30, 1987 
Regulations. 
The Secretary shall approve such proposal if the State or 
local government submitting the proposal or any other 
person is willing and able to pay 50 percent of the cost of 
providing the proposed compensated air transportation; 
except that the Secretary shall disapprove such proposal if 
the Secretary determines that such proposal is not reason-
able. In the case of disapproval of a proposal, the notifica-
tion of such disapproval must include the reasons for such 
disapproval. 
"(B) 
SMALL 
COMMUNITY 
SERVICE.—Notwithstanding 
subparagraph (A)(ii), the Secretary shall approve a proposal 
submitted under this subsection for compensated air 
transportation to a point in the 48 contiguous States and 
designate such point as eligible for compensation under this 
subsection— 
"(i) if, at any time before October 23, 1978, the point 
was served by an air carrier that held a certificate 
issued under section 401; 
"(ii) if the point is more than 50 miles from the 
nearest small hub airport or an eligible point; 
"(iii) if the point is more than 150 miles from the 
nearest hub airport; and 
"(iv) if the State or local government submitting the 
proposal or any other person is willing and able to pay 
25 percent of the cost of providing the proposed com-
pensated air transportation. 
"(C) CRITERIA FOR DETERMINING REASONABLENESS.—In 
determining whether or not a proposal submitted under 
this subsection is reasonable, the Secretary shall consider, 
among other factors, the traffic generating potential of the 
point, the cost to the Federal Government of providing the 
proposed service, and the distance of the point from the 
closest hub airport. 
"(D) WITHDRAWAL OF DESIGNATION.—After notice and an 
opportunity for any interested person to comment, the 
Secretary may withdraw the designation of a point under 
subparagraph (A) as eligible to receive compensation under 
this subsection if the point has received air service under 
this subsection for at least 2 years and the Secretary deter-
mines that withdrawal of that designation would be in the 
public interest. The Secretary shall establish, by regulation, 
standards for determining whether or not withdrawal of a 
designation under this paragraph is in the public interest. 
Such standards shall include, but not be limited to, the 
factors set forth in subparagraph (C). 
'(3) LEVEL OF SERVICE.— 
"(A) INITIAL DETERMINATION.—If the Secretary designates 
a point under paragraph (2), the Secretary shall determine 
the level of service to be provided under this subsection. 
The Secretary shall determine such level after considering 
the views of any interested community, the State agency of 
the State in which the point is located, and the government 
or person agreeing to pay the non-Federal share of the cost 
of the proposed service. The Secretary shall determine such 
level not later than 6 months after the date on which the 
Secretary designates such point under paragraph (2). 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1515 
"(B) REVIEW.—The Secretary shsill periodically review 
the level of air service provided under this subsection and 
may, based upon such review and consultation with any 
interested community, any State agency of the State in 
which the community is located, and any government or 
person providing the non-Federal share of the compensa-
tion for the service, make appropriate adjustments in the 
level of service. 
"(4) SELECTION OF CARRIER.—After making the determinations 
required by parsigraph (3) with respect to a designated point, the 
Secretary shall provide notice that applications may be sub-
mitted by any air carrier that is willing to provide the level of 
air service determined under paragraph (3) with respect to such 
point. In selecting an applicant to provide such service the 
Secretary shall, among other factors, consider the factors set 
forth in subsection (bX3XA) and shsdl also consider the views of 
the government or person pa3dng the non-Federal share of the 
cost of the service. 
"(5) NON-FEDERAL SHARE.—Except as provided in paragraph 
(2)(B), the non-Federal share for compensation required for 
providing air service under this subsection shall be 50 percent. 
"(6) NOTICE BEFORE TERMINATION, SUSPENSION, OR REDUCTION 
OP SERVICE.—An air carrier may not terminate, suspend, or 
reduce air transportation to an eligible point for which com-
pensation is paid under this subsection below the level of such 
service established by the Secretary under paragraph (3) unless 
such carrier has given the Secretary, the community affected, 
and the government or person paying the non-Federal share at 
least 30 days' notice before such termination, suspension, or 
reduction. 
"(7) PAYMENT OF COMPENSATION.—The Secretary shall make 
pajnnents of compensation under this subsection at times and in 
a manner determined by the Secretary to be appropriate. The 
Secretary shall continue to pay compensation to an air carrier 
to provide service to a point designated under this subsection 
only for so long £is such carrier maintains such service and the 
government or person agreeing to pay the non-Federal share 
continues to pay such share and only for so long as the Sec-
retary determines it is necessary in order to maintain such 
service to such point. 
"(8) PAYMENT OF NON-FEDERAL SHARE.—The Secretary may 
require appropriate payment in advance or such other security 
to £issure that the non-Federal pajnnents for air service under 
this subsection are timely made. 
'(e) FITNESS.— 
"(1) GENERAL RULE.—Notwithstanding section 416(b) of this 
title, the Secretary shall prohibit any air carrier from providing 
service to an eligible point and from providing service to a point 
designated under subsection (d), unless the Secretary deter-
mines that such air carrier— 
"(A) is fit, willing, and able to perform such service; and 
"(B) that all aircraft which will be used to perform such 
service and all operations relating to such 
service 
will conform to the safety standards established by the 
Administrator. 
"(2) LIMITATION ON COMPENSATION.—The Secretary may not 
pay compensation to any air carrier for providing air service 
101 STAT. 1516 
PUBLIC LAW 100-223—DEC. 30, 1987 
under this section unless the Secretary finds that such carrier is 
able to provide the air service in a reliable manner. 
"(f) GUIDELINES FOR COMPENSATION.—The Secretary shall estab-
lish guidelines to be used in computing the fair and reasonable 
amount of compensation required to ensure the continuation of air 
service under this section. Such guidelines shall provide for a reduc-
tion in compensation in any case in which an air carrier fails to 
perform any agreed upon air service. Such guidelines shall take into 
account amounts needed by air carriers to promote public use of the 
service for which compensation is to be made and shall include 
expense elements based upon representative costs of air carriers 
providing scheduled air transportation of persons, property, and 
mail, using aircraft of the type determined by the Secretary to be 
appropriate for providing such service. Amounts needed for pro-
motion of such service shall be a special, segregated element of the 
required compensation. 
(g) DEADLINE FOR PAYMENT OF COMPENSATION.—Not later than 15 
days after receiving a written claim for compensation from an air 
carrier for providing air service under this section, the Secretary 
shall pay the Federal share of such claim or deny payment of the 
Federal share of such claim and notify the carrier of such denial and 
the reasons therefor. 
"(h) INSURANCE.—An air carrier shall not receive compensation 
under this section unless such air carrier complies with regulations 
or orders issued by the Secretary governing the filing and approval 
of policies of insurance or plans for self-insurance in the amount 
prescribed by the Secretary which are conditioned to pay, within the 
amount of such insurance, amounts for which such air carrier may 
become liable for bodily injuries to or the death of any person, or for 
loss of or damage to property of others, resulting from the operation 
or maintenance of aircraft. 
"(i) CARRIER OBLIGATIONS.—If 2 or more air carriers enter into an 
agreement to operate under or use a single air carrier designator 
code to provide air transportation, the air carrier whose code is 
being used under such agreement shall share responsibility with the 
other carriers for the quality of service provided under such code to 
the public by such other carriers. 
"(j) ENCOURAGEMENT OF JOINT AIR SERVICE PROPOSALS.—The Sec-
retary shall encourage the submission of joint proposals by 2 or 
more air carriers for providing air service under this section 
through arrangements which will maximize service to and from 
major destinations beyond the hub. 
(k) DEFINITIONS.—For purposes of this section— 
"(1) BASIC ESSENTIAL AIR SERVICE.—The term 'basic essential 
air service' means scheduled air transportation of persons and 
cargo to a hub airport (or, in any case in which the nearest hub 
airport is more than 400 miles and in the case of Alaska, to a 
small hub or nonhub airport) which has convenient connecting 
or single-plane air service to a substantial number of destina-
tions beyond such airport. Such transportation shall include, at 
least, the following elements: 
"(AXi) with respect to a point not in the State of Alaska, 2 
daily round trips 6 days per week, with not more than 1 
intermediate stop on each flight; or 
"(ii) with respect to a point in the State of Alaska, a level 
of service that is not less than that which existed in cal-
s- . • 
endar year 1976, or 2 round trips per week, whichever is 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1517 
bitB ^ 
greater, unless otherwise specified under an agreement 
between the Secretary and the State agency of the State of 
Alaska, after consultation with the community affected; 
"(B) flights at resisonable times taking into account the 
needs of passengers with connecting flights at such airport 
and at rates, fares, and charges which are not excessive 
when compared to the generally prevailing fare? of other 
air carriers for like service between similar pairs of points; 
"(C) with respect to a point not in the State of Alaska, 
service provided in an aircraft with an effective capacity of 
at least 15 passengers if the average daily enplanements at 
such point in any calendar year beginning after Decem-
ber 31, 1975, and ending on or before December 31, 1986, 
exceeded 11 passengers unless— 
"(i) requiring such service would require the pay-
p , 
ment of compensation in a fiscal year under subsection 
(bX4) or (bX6) with respect to such point when no 
compensation under sucn subsection would otherwise 
be paid with respect to such point in such flscal year; or 
(ii) the community concerned agrees in writing with 
the Secretary to the use of smaller aircraft to provide 
service to such point; 
"(D) service which accommodates the estimated pas-
senger and cargo traffic at an average load factor of not 
greater than— 
"(i) 50 percent, or 
"(ii) in any case in which such service is being pro-
vided with aircraft with 15 passenger seats or more, 60 
i 
percent, 
'<=' 
for each class of traffic taking into account seasonal de-
mands for such service; 
"(E) service provided in an aircraft with at least 2 engines 
and using 2 pilots, unless scheduled air transportation in 
aircraft with at least 2 engines and using 2 pilots has not 
been provided with respect to the point on each of 60 
consecutive operating days at any time since October 31, 
d^ 
1978; and 
c;' 
"(F) in the case of service which regularly exceeds 8,000 
feet in altitude, service provided with pressurized aircraft. 
"(2) ENHANCED ESSENTIAL AIR SERVICE.—The term 'enhanced 
':\ 
essential air service' means scheduled air transportation to an 
eligible point of a higher level or quality than basic essential air 
service. 
8; 
"(3) HUB AIRPORT.—The term 'hub airport' means an airport 
that annually has 0.25 percent or more of the total annual 
enplanements in the United States. 
(4) NoNHUB AIRPORT.—The term 'nonhub airport' means an 
airport that annually has less than 0.05 percent of the total 
annual enplanements in the United States. 
"(5) SMALL HUB AIRPORT.—The term 'small hub airport' means 
an airport that annually has 0.05 percent or more, but less than 
0.25 percent, of the total annual enplanements in the United 
States. 
"(1) DURATION OF PROGRAM.—This section shall not be in effect 
Termination 
after September 30,1998.". 
date. 
(2) CONFORMING AMENDMENT.—The table of contents con-
j 
tained in the first section of the Federal Aviation Act of 1958 is 
101 STAT. 1518 
PUBLIC LAW 100-223—DEC. 30, 1987 
amended by striking out the item relating to section 419 and 
inserting in lieu thereof the following: 
"Sec. 419. Small community air service. 
"(a) Eligible point defined. 
"(b) Basic essential air service. 
"(c) Enhanced essential air service. 
"(d) Compensation for service to other small communities. 
"(e) Fitness. 
"(f) Guidelines for compensation. 
"(g) Deadline for payment of compensation. 
"(h) Insurance. 
"(i) Carrier obligations. 
\i 
"(j) Encouragement of joint air service proposals. 
"(k) Definitions. 
"(1) Duration of program.". 
49 use app. 1389 
(3) EFFECTIVE DATE.—The amendments made by this subsec-
note. 
tion shall take effect October 1,1988. 
49 u s e app. 1421 SEC. 203. AIRCRAFT COLLISION AVOIDANCE SYSTEMS. 
(a) FINDINGS.—Congress finds that— 
(1) the number of near midair collisions is an indication that 
additional measures must be taken to assure the highest level of 
air safety in the United States; 
(2) public health and safety requirements necessitate the 
timely completion and installation of a collision avoidance 
system for use by commercial aircraft flying in the United 
States; 
(3) the Traffic Alert and Collision Avoidance System promises 
to reduce the threat to life caused by midair collisions, particu-
j.^ 
larly collisions between general aviation aircraft and commer-
cial aircraft; 
(4) the Traffic Alert and Collision Avoidance System will 
succeed only to the degree that other aircraft posing a collision 
threat use operating transponders with automatic altitude 
reporting capability; and 
(5) the Federal Aviation Administration should continue at a 
deliberate pace the development of additional technologies, 
including the collision avoidance system known as TCAS-III, to 
ensure the safe separation of aircraft. 
49 use app. 
(b) GENERAL RULES.—Section 601 is amended by adding at the end 
1421. 
the following new subsection: 
"(f) COLLISION AVOIDANCE SYSTEMS.— 
"(1) DEVELOPMENT AND CERTIFICATION.— 
"(A) STANDARDS.—The Administrator shall complete 
development of the collision avoidance system known as 
TCAS-II so that such system will be operable under visual 
.
~ ; 
and instrument flight rules and will be upgradable to the 
performance standards applicable to the collision avoidance 
system known as TCAS-III. 
"(B) SCHEDULE.—The Administrator shall develop and 
implement a schedule for development and certification of 
the collision avoidance system known as TCAS-II which 
will result in completion of such certification not later than 
^
^ ,.;, 
18 months after the date of the enactment of this 
.: 
subsection. 
"(C) MONTHLY REPORTS.—The Administrator shall trans-
mit to Congress monthly reports on the progress being 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1519 
made in development and certification of the collision 
avoidance system known as TCAS-II. 
"(2) INSTALLATION.—The Administrator shall require by regu-
lation that, not later than 30 months after the date of certifi-
cation of the collision avoidance system known as TCAS-II, 
such system be installed and operated on each civil aircraft 
which has a maximum passenger capacity of more than 30 seats 
^, 
and which is used to provide air transportation of passengers, 
including intrastate air transportation of passengers. 
.,. 
"(3) TRANSPONDERS.—Not later than 6 months after the date 
of the enactment of this subsection, the Administrator shall 
promulgate a final rule requiring the installation and use of 
operating transponders with automatic altitude reporting 
capability for aircraft operating in designated terminal airspace 
where radar service is provided for separation of aircraft. For 
such terminal airspace, other than Terminal Control Areas and 
Airport Radar Service Areas, the Administrator may provide 
for access to such airspace by nonequipped aircraft if the 
Administrator determines that such access will not interfere 
with the normal traffic flow. Such final rule shall require the 
installation and use of such transponders not later than 36 
months after the date of the enactment of this subsection.". 
(c) CONFORMING AMENDMENT.—That portion of table of contents 
contained in the first section of the Federal Aviation Act of 1958 
which appears under the heading 
"Sec. 601. General safety powers and duties." 
is amended by adding at the end the following: 
"(f) Collision avoidance systems.". 
(d) COMPLETION OF RESEARCH AND DEVELOPMENT.— 
(1) GENERAL RULE.—The Administrator shall complete the 
research and the development on, and the certification of, the 
collision avoidance system known as TCAS-III as soon as 
possible. 
(2) AUTHORIZATION OF APPROPRIATION.—There are authorized 
to be appropriated such sums as may be necessary from the 
Airport and Airway Trust Fund to carry out this subsection. 
SEC. 204. CIVIL PENALTIES. 
(a) FOR HAZARDS TO COMMERCE.—Section 901(aXl)(A) is amended 
by striking out "1114," and inserting in lieu thereof "1101 or 1114,". 
(b) INCREASED PENALTY FOR AIR CARRIERS.—The first sentence of 
section 901(aXl) is amended by inserting after "$1,000 for each such 
violation," the following: "except that a person who operates air-
craft for the carriage of persons or property for compensation or 
hire (other than an airman serving in the capacity of an airman) 
shall be subject to a civil penalty not to exceed $10,000 for each 
violation of title III, VI, or XII of this Act, or any rule, regulation, or 
order issued thereunder, occurring after the date of the enactment 
of the Airport and Airway Safety and Capacity Expansion Act of 
1987, and". 
(c) CLARIFICATION OF DETERMINATION OF PENALTY.—The second 
sentence of section 901(aXl) is amended by inserting ", or each flight 
with respect to which such violation is committed, if applicable," 
after "each day of such violation". 
(d) COMPROMISE.—Section 901(aX2) is amended by inserting ", or of 
section 1101,1114, or 1115(eX2XB)," after "XII". 
Regulations. 
Regulations. 
49 u s e app. 1421 
note. 
49 u s e app. 
1471. 
101 STAT. 1520 
PUBLIC LAW 100-223—DEC. 30, 1987 
(e) PENALTY FOR INTERFERENCE WITH AIRCRAFT ACCIDENT INVES-
49USCapp. 
TiGATiONS.—Section 902(p) is amended by striking out "shall be 
l'*'''2- 
subject to a fine of no less than $100 nor more than $5,000, or 
imprisonment for not more than one year, or both" and inserting in 
lieu thereof "shall be fined in accordance with title 18, United States 
Code, or imprisoned not more than 10 years, or both". 
(f) SECURED AREAS OF AIRPORTS.—Section 902 is amended— 
(1) in subsection (o) by inserting "and subsection (r)" after 
"inclusive,"; and 
• •
• * 
(2) by adding at the end thereof the following new subsection: 
"(r) SECURED AREAS OF AIRPORTS.— 
"(1) VIOLATION.—It shall be unlawful for any person to know-
ingly and willfully enter an aircraft or an airport area that 
serves air carriers or foreign air carriers contrary to security 
requirements established pursuant to section 315 or 316 of this 
Act. 
"(2) GENERAL PENALTY.—Upon conviction of a violation of 
paragraph (1), a person shall be subject to imprisonment for a 
term not to exceed 1 year or a fine not to exceed $1,000, or both. 
"(3) PENALTY FOR VIOLATIONS IN CONNECTION WITH FELONIES.— 
If any person violates paragraph (1) of this subsection with the 
intent to commit in the aircraft or secured area an act punish-
able as a felony under Federal or State law, such person shall be 
subject to imprisonment for a term not to exceed 10 years or a 
fine not to exceed $10,000, or both.". 
(g) DEMONSTRATION PROGRAM.—Title IX is amended by adding at 
the end thereof the following new section: 
49 u s e app. 
"SEC. 905. CIVIL PENALTY ASSESSMENT DEMONSTRATION PROGRAM. 
"(a) CIVIL PENALTY.—The Administrator, or his delegate, may 
assess a civil penalty for a violation arising under this Act or a rule, 
regulation, or order issued thereunder, upon written notice and 
finding of violation by the Administrator. 
"(b) No REEXAMINATION OF LIABIUTY OR AMOUNT.—In the case of 
a civil penalty assessed by the Administrator in accordance with 
this section, the issue of liability or amount of civil penalty shall not 
be reexamined in any subsequent suit for collection of such civil 
penalty. 
"(c) CONTINUING JURISDICTION OF DISTRICT COURTS.—Notwith-
standing subsection (a) of this section, the United States district 
courts shall have exclusive jurisdiction of any civil penalty action 
initiated by the Administrator (1) which involves an amount in 
controversy in excess of $50,000; (2) which is an in rem action or in 
which an in rem action based on the same violation has been 
brought; (3) regarding which an aircraft subject to lien has been 
seized by the United States; and (4) in which a suit for injunctive 
relief based on the violation giving rise to the civil penalty has also 
been brought. 
"(d) LIMITATIONS.— 
"(1) HEARING.—A civil penalty may be assessed under this 
section only after notice and opportunity for a hearing on the 
record in accordance with section 554 of title 5, United States 
Code. 
"(2) VIOLATIONS.—This section only applies to civil penalties 
"
t 
initiated by the Administrator after the date of the enactment 
of this section. 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1521 
"(3) MAXIMUM AMOUNT.—The maximum amount of a civil 
penalty which may be assessed under this section in any case 
may not exceed $50,000. 
"(4) EFFECTIVE PERIOD.—The provisions of this section shall 
only be in effect for the 2-year period beginning on the date of 
the enactment of this section.", 
(h) CONFORMING AMENDMENTS.—That portion of the table of con-
tents contained in section 1 of the Federal Aviation Act of 1958 
relating to title IX of the Federal Aviation Act of 1958 is amended— 
(1) by inserting 
"(r) Secured areas of airports." 
after 
"(q) Transporting controlled substances without airman certificate."; and 
(2) by adding at the end thereof the following: 
"Sec. 905. Civil penalty assessment demonstration program.". 
(i) EFFECTIVENESS REVIEWED.— 
49 use app. 1475 
(1) STUDY.—The Administrator shall conduct a study on the note. 
i 
effectiveness of the amendments made by this section to the 
Federal Aviation Act of 1958. 
(2) REPORT.—Not later than 18 months after the date of 
enactment of this section, the Administrator shall transmit to 
Congress a report on the results of the study conducted under 
this subsection. The report shall include (A) the Administrator's 
views concerning the effectiveness of civil penalty levels estab-
. 
lished by the amendments made by this section and whether 
additional changes to the civil penalty program conducted 
u 
under title IX of such Act are necessary to provide an adequate 
safety deterrence; and (B) the Administrator's recommendation 
as to the effectiveness of the civil penalty assessment dem-
onstration program authorized by section 905 of the Federal 
Aviation Act of 1958 and whether it should be continued. 
SEC. 205. INDEMNIFICATION OF FEDERAL AVIATION ADMINISTRATION 
EMPLOYEES. 
Section 313 is amended by adding at the end thereof the following 
49 use app. 
new subsection: 
1354. 
"(e) INDEMNIFICATION.—The Administrator is empowered to 
indemnify any officer or employee of the Federal Aviation Adminis-
tration against any claim or judgment £igainst such person if such 
claim or judgment arises out of an act or acts committed, as deter-
mined by the Administrator, within the scope of such person's 
official duties. The Administrator may issue such regulations as 
may be necessary to implement this subsection.". 
SEC. 206. HAZARDS TO SAFE AND EFFICIENT AIR COMMERCE AND THE 
PRESERVATION OF NAVIGABLE AIRSPACE AND AIRPORT 
TRAFFIC CAPACITY. 
Section 1101 is amended to read as follows: 
49 USe app. 
1501. 
"SEC. 1101. HAZARDS TO SAFE AND EFFICIENT AIR COMMERCE AND THE 
PRESERVATION OF NAVIGABLE AIRSPACE AND AIRPORT 
TRAFFIC CAPACITY. 
"(a) NOTICE OF CONSTRUCTION.—The Secretary of Transportation Regulations, 
(hereinafter in this section referred to as the 'Secretary') shall, by 
rules and regulations, or by order where necessary, require all 
persons to give adequate public notice, in the form and manner 
101 STAT. 1522 
PUBLIC LAW 100-223—DEC. 30, 1987 
prescribed by the Secretary, of the construction or alteration, or of 
the proposed construction or alteration, of any structure where 
notice will promote safety in air commerce as well as the efficient 
use and preservation of the navigable airspace and of airport traffic 
capacity at public-use airports. 
"(b) AERONAUTICAL STUDIES.— 
"(1) REQUIREMENT.—Where the Secretary determines, accord-
ing to rules and regulations, that the construction or alteration 
of any structure may constitute an obstruction of navigable 
airspace or an interference with air navigation facilities and 
equipment or navigable airspace, the Secretary shall conduct an 
aeronautical study to determine the extent of the adverse 
impact, if any, on the safe and efficient use of such airspace, 
facilities, or equipment. 
"(2) FACTORS TO CONSIDER.—When conducting an aeronautical 
study under this subsection to determine the impact of the 
construction or alteration of a structure, the Secretary shall 
thoroughly consider, according to rules and regulations, all 
factors relevant to the efficient and effective use of the navi-
gable airspace, and shall consider the following: 
"(A) The impact on arrival, departure, and en route 
procedures for aircraft operating under visual flight rules. 
"(B) The impact on arrival, departure, and en route 
procedures for aircraft operating under instrument flight 
rules. 
"(C) The impact on all existing public-use airports and 
aeronautical facilities. 
"(D) The impact on all planned public-use airports and 
aeronautical facilities. 
"(E) The cumulative impact resulting from the proposed 
construction or alteration of a structure when combined 
with the impact of other existing or proposed structures. 
"(3) REPORT.—Upon completion of an aeronautical study 
under this subsection, the Secretary shall issue a report fully 
disclosing the extent of the adverse impact on the safe and 
efficient use of the navigable airspace which the Secretary 
determines will result from the construction or alteration of a 
structure. 
Communications 
"(c) COORDINATION.—In the administration of laws relating to 
?"-li^.^.!.":„_x:__„ 
broadcast applications and the conduct of aeronautical studies relat-
" ^ 
ing to broadcast towers, the Federal Communications Commission 
and the Federal Aviation Administration shall take such action as 
may be necessary to efficiently coordinate the receipt, consideration 
of, and action upon such applications and the completion of associ-
ated aeronautical studies.''. 
(b) CONFORMING AMENDMENT.—That portion of table of contents 
contained in the first section of the Federal Aviation Act of 1958 is 
amended by striking out 
"Sec. 1101. Hazards to air commerce." 
and inserting in lieu thereof 
communications. 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1523 
"Sec. 1101. Hazards to safe and efficient air commerce and the preservation of 
navigable airspace and airport traffic capacity.". 
SEC. 207. PUBLIC AIRCRAFT DEFINED. 
Section 101(36) is amended by adding at the end thereof the 
following new sentence: "For purposes of this paragraph, 'used 
exclusively in the service of means, for other than the Federal 
Government, an aircraft which is owned and operated by a govern-
mental entity for other than commercial purposes or which is 
exclusively leased by such governmental entity for not less than 90 
continuous days.". 
TITLE III—MISCELLANEOUS PROVISIONS 
49 u s e app. 
1301. 
SEC. 301. NOISE ABATEMENT. 
(a) NOTICE AND HEARING REQUIREMENT.—The first sentence of 
section 104(a) of the Aviation Safety and Noise Abatement Act of 
1979 (49 U.S.C. App. 2104(a)) is amended by inserting after "any air 
carriers using such airport" the following: "and after notice and an 
opportunity for a public hearing". 
(b) FEDERAL SHARE.—Section 104(c)(1) of the Aviation Safety and 
Noise Abatement Act of 1979 (49 U.S.C. App. 2104(c)(1)) is amended 
by inserting before the period at the end of the fourth sentence the 
following: "or the Federal share which would be applicable to such 
project if the funds made available for such project were being made 
available under the Airport and Airway Improvement Act of 1982 
for a project at the airport, whichever percentage is greater". 
(c) SOUNDPROOFING OF SCHOOLS AND HOSPITALS.—Section 104(c) of 
the Aviation Safety and Noise Abatement Act of 1979 (49 U.S.C. 
App. 2104(c)) is amended by adding at the end thereof the following 
new paragraph: 
"(3) The Secretary is authorized under this section to make grants 
to operators of airports and to units of local government referred to 
in paragraph (1) for any project to soundproof any public building 
(A) which is used primarily for educational or medical purposes in 
the noise impact area surrounding such airport, and (B) which is 
determined to be adversely affected by airport noise.". 
(d) 
PROCEDURES FOR PREPARATION AND SUBMISSION OF NOISE 
COMPATIBIUTY PROGRAMS.— 
(1) STUDY.—The Secretary shall conduct a study of the proce-
dures established under the Aviation Safety and Noise Abate-
ment Act of 1979 for the preparation and submission of noise 
compatibility programs. The objectives of such study shall be to 
determine whether or not such procedures could be revised to 
provide a more simplified process which meet the objectives of 
such Act and to determine whether or not expedited and sim-
plified procedures which meet the objectives of such Act could 
be developed to take into account special circumstances at 
certain airports. 
(2) CONSULTATION REQUIREMENT.—In undertaking the study 
under this subsection, the Secretary shall consult airports, air-
port users (including air carriers), representatives of persons 
residing in areas surrounding airports, concerned Federal, 
State, and local officials, and other interested persons. 
State and local 
governments. 
Grants. 
49 u s e app. 2104 
note. 
91-194 O - 90 - 8 : QL.3 Part 3 
101 STAT. 1524 
PUBLIC LAW 100-223—DEC. 30, 1987 
Grants. 
49 use app. 1348 
note. 
i<' 
(3) REPORT.—Not later than 18 months after the date of the 
enactment of this Act, the Secretary shedl transmit to Congress 
a report on the results of the study conducted under paragraph 
(1) together with recommendations. 
(4) FUNDING DURING STUDY.— 
(A) CONGRESSIONAL INTENT.—It is the intention of Con-
gress that the authority of the Secretary to make grants 
under section 104(cX2) of the Aviation Safety and Noise 
Abatement Act of 1979 to airport operators and units of 
local government to implement noise compatibility pro-
grams that were developed prior to the promulgation of 
implementing regulations under such Act if the Secretary 
-y. 
determines that such programs would further the purposes 
of such Act shall continue until such programs are fully 
implemented but not later than the last day of the 18-
month period beginning on the date of the enactment of 
this Act, notwithstanding any other provision of law and 
any rule or regulation promulgated pursuant to any other 
provision of law. 
(B) CONTINUATION.—In order to carry out the intent 
specified in subparagraph (A), grants may continue to be 
made under section 104(cX2) of the Aviation Safety and 
Noise Abatement Act of 1979 for noise compatibility pro-
S
rams or projects previously approved under such program 
uring the 18-month period beginning on the date of the 
enactment of this Act, i
f
—
• 
(i) the operator of the airport involved submits up-
dated noise exposure contours, as required by the Sec-
retary; and 
(ii) the Secretary determines that such programs or 
projects are compatible with the purp<»es of such Act. 
(e) EXISTING NOISE ABATEMENT PROPOSALS.— 
(1) REVIEW.—The Administrator shall conduct a study of 
noise abatement proposals under consideration by airport op-
erators and local governments for the purpose of identifying 
those proposals which, under existing law or administrative 
policy, are not currently eligible for Federal assistance and 
determining whether or not such proposals should be made 
eligible for Federal assistance. 
(2) REPORT.—Not later than 180 days after the date of the 
enactment of this Act, the Administrator shall transmit to 
Congress a report on the results of the study conducted under 
para^aph (1), together with recommendations concerning modi-
fications in existing law and administrative policy for making 
additional noise abatement proposals eligible for Federal 
assistance. 
SEC. 302. AIR TRAFFIC CONTROLLER WORKFORCE. 
(a) 
MINIMUM NUMBER OF AIR TRAFFIC CONTROLLERS.—The 
Administrator shall hire such additional persons as are necessary to 
make the number of persons emploved in the air traffic control 
workforce on September 30,1988, not less than 15,900. 
(b) AIR TRAFFIC CONTROL WORKFORCE DEFINED.—For purposes of 
this section, the term "air traffic control workforce" means persons 
employed by the Federal Aviation Administration (including per-
sons employed as trafHc management coordinators and air traffic 
control nrst line supervisors) a substantial part of whose duties 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1525 
include separating and controlling air traffic. Such term does not 
include £iny air traffic eissistant and any student at an air traffic 
control academy. 
SEC. 303. SAFETY RULEMAKING PROCEEDINGS. 
49 USC app. 1421 
(a) FLOATATION EQUIPMENT.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary shall initiate a 
rulemaking proceeding to consider requiring (1) adequate, uniform 
life preservers, life rafts, and floatation devices for passengers, 
including small children and infants, on any flight of an air carrier 
which the Secretary determines a part of which flight will occur 
over water, and (2) adequate information and instructions as to the 
use of such preservers, rafts, and floatation devices. 
(b) 
IMPROVED 
CRASHWORTHINESS STANDARDS 
FOR AIRCRAFT 
SEATS.—Not later than 120 da^s after the date of the enactment of 
this Act, the Secretary shall initiate a rulemaking proceeding to 
consider requiring all seats on board all air carrier aircraft to meet 
improved crashworthiness standards based upon the best avail£U>le 
testing standards for crashworthiness. 
(c) COCKPIT VOICE RECORDERS AND FUGHT DATA RECORDERS.—Not 
later than 120 days after the date of the enactment of this Act, the 
Secretary shall initiate a rulemaking proceeding to consider the use 
of cockpit voice recorders and flight data recorders on commuter 
aircraft and other aircraft, commensurate with the recommenda-
tions of the National Transportation Safety Board. 
(d) MONTHLY STATUS R!n>ORTS.—The Secretary shall transmit to 
Congress monthly status reports on the rulemaking proceedings 
being conducted under subsections (a), (b), and (c) of this section. 
(e) AIRCRAFT DESIGN AND EQUIPMENT.— 
(1) STUDY.—The Secretary shall conduct a study pertaining to 
aircraft design and equipment which minimize the incidence of 
fire or explosion, including fuel tanks (including crash resistant 
inner fuel tanks and bres^way, self-closing fittings throughout 
the fuel S3rstem). 
(2) REPORT.—Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall transmit to Congress 
a report on the results of the study conducted under this 
subsection, together with recommendations. 
(f) REPORT ON MODERNIZATION RECOMMENDATIONS.—Not later 
than 90 days after the date of the enactment of this Act, the 
Secretary shall report to Congress on specific regulations the Sec-
retary has adopted or intends to adopt to modernize and improve 
the oversight and inspection of air carrier maintenance and safety-
related procedures. 
SEC. 304. INFLATION ADJUSTMENT ON COLLECTION OF CERTAIN AVIA-
TION FEES. 
J - ;: t 
Section 334 of title 49, United States Code, is amended by insert-
ing before the period at the end of the Hrst sentence the following: 
", adjusted in proportion to changes in the Consumer Price Index for 
AH Urban Consumers published by the Bureau of Labor Statistics of 
the Department of Labor between January 1,1973, and the date the 
charge is imposed". 
SEC. 305. AMENDMENTS TO THE NATIONAL DRIVER REGISTER ACT. 
(a) EXPANSION OF COVERAGE.—Section 206(aXl) of the National 
Driver Register Act of 1982 (23 U.S.C. 401 note) is amended by 
101 STAT. 1526 
PUBLIC LAW 100-223—DEC. 30, 1987 
striking out "highway" and inserting in Ueu thereof "transpor-
tation". 
23 use 401 note. 
(b) APPLICANTS FOR AIRMEN'S CERTIFICATES.—Section 206(b) of 
such Act is amended— 
(1) by redesignating paragraphs (3) and (4), and any reference 
thereto, as paragraphs (4) and (5), respectively; and 
(2) by inserting after paragraph (2) the following new 
paragraph: 
"(3) Any individual who has applied for or received an airman's 
certificate may request the chief driver licensing official of a State 
to transmit information regarding the individual under subsection 
(a) of this section to the Administrator of the Federal Aviation 
Administration. 
The Administrator 
of the Federal 
Aviation 
Administration may receive such information and shall make such 
information available to the individual for review and written com-
ment. The Administrator shall not otherwise divulge or use such 
information, except to verify information required to be reported to 
the Administrator by an airman applying for an airman medical 
certificate and to evaluate whether the airman meets the minimum 
standards as prescribed by the Administrator to be issued an airman 
medical certificate. There shall be no access to information in the 
Register under this paragraph if such information was entered in 
the Register more than 3 years before the date of such request, 
unless such information relates to revocations or suspensions which 
are still in effect on the date of the request. Information submitted 
to the Register by States under the Act of July 14, 1960 (74 Stat. 
526), or under this Act shall be subject to access for the purpose of 
this paragraph during the transition to the Register established 
under section 203(a) of this Act.". 
(c) CONFORMING AMENDMENTS.—Section 206(b) of such Act is fur-
ther amended by adding at the end of each of paragraphs (1), (2), and 
(4) (as redesignated by subsection (b) of this section) the following 
new sentence: "Information submitted to the Register by States 
under the Act of July 14,1960 (74 Stat. 526), and under this Act shall 
be subject to access for the purpose of this paragraph during the 
transition to the Register established under section 203(a) of this 
Act.". 
49 u s e app. 
SEC. 306. LOW ACTIVITY LEVEL I AIR TRAFFIC CONTROL TOWER CON-
222 note. 
TRACT PROGRAM. 
The Secretary shall continue in effect the low activity (VFR) Level 
I air traffic control tower contract program established under sec-
tion 526 of the Airport and Airway Improvement Act of 1982 with 
respect to existing contract towers and shall extend such program to 
other towers as practicable. 
Contracts. 
SEC. 307. ELIGIBILITY OF DERMOTT, ARKANSAS, MUNICIPAL AIRPORT. 
In the administration of the provisions of the Airport and Airway 
Improvement Act of 1982, the municipal airport of the city of 
Dermott, Arkansas, shall not be denied eligibility for assistance 
under such Act on the basis that such airport is located on leased 
land, if such lease is for a period of at least 99 years, and if the land 
so leased consists of at least 25 acres. 
Regulations. 
SEC. 308. STANDARDS FOR NAVIGATIONAL AIDS. 
note. ^^^ 
Not later than December 31, 1988, the Secretary shall promulgate 
regulations to establish criteria for the installation of airport control 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1527 
towers and other navigational aids. For each type of facility, the 
regulations shall, at a minimum, consider traffic density (number of 
aircraft operations without consideration of aircraft size), terrain 
and other obstacles to navigation, weather characteristics, pas-
sengers served, and potential aircraft operating efficiencies. 
SEC. 309. LONG-TERM AIRPORT CAPACITY NEEDS. 
note.^^ ^^^ ^^^^ 
(a) STUDY.—The Secretary shall conduct a study for the purpose of 
developing an overall airport system plan through the year 2010 
which will assure the long-term availability of adequate airport 
system capacity. 
(h) REPORTS.— 
(1) PRELIMINARY REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Secretary shall transmit to 
Congress a preliminary report on the status of the plan being 
developed under subsection (a). 
(2) FINAL REPORT.—Not later than January 1, 1990, the Sec-
retary shall transmit to Congress a final report on the results of 
the study conducted under subsection (a), together with the plan 
developed under such subsection. 
(c) FUNDING.—There shall be available to the Secretary from the 
Airport and Airway Trust Fund $250,000 per fiscal year for each of 
fiscal years 1988 and 1989 for carrying out this section. Such funds 
shall remain available until expended. 
SEC. 310. RADIO NAVIGATION SYSTEMS. 
49 USC app. 1348 
(a) SYNCHRONIZATION.— 
(1) LoRAN-c MASTER TRANSMITTERS.—Not later than Septem- 
-
^ .,>. 
her 30, 1989, the Secretary shall take such action as may be 
necessary to synchronize all loran-C master transmitters lo-
cated in the United States and all loran-C master transmitters 
subject to the jurisdiction of the United States. Each such 
master transmitter shall be synchronized to within approxi-
mately 100 nanoseconds of universal time. 
(2) OTHER LORAN-C TRANSMITTERS.— 
(A) IMPACT STUDY.—The Secretary shall conduct a study 
of the impact on users of loran-C transmitted signals of 
synchronizing time of signal transmissions among all 
secondary loran-C transmitters in the United States in 
accordance with the standard set forth in the second sen-
tence of paragraph (1). 
(B) REPORT.—Not later than September 30, 1989, the 
Secretary shall transmit to Congress a report on the results 
of the study conducted under subparagraph (A). 
(3) AUTHORIZATION.—There shall be available for carrying out 
this subsection from the Airport and Airway Trust Fund 
$750,000 for fiscal year 1988 and $500,000 for fiscal year 1989. 
-i.-.-uK 
Such funds shall remain available until expended. 
(b) INTEROPERABILITY OF RADIO NAVIGATION SYSTEMS.— 
(1) STUDY.—The Secretary shall study and evaluate methods 
of coordinating the time references of the loran-C transmitter 
system and the global positioning satellite system to within 
approximately 30 nanoseconds of each other for the purpose of 
making possible the interchange of positioning data between 
the 2 systems. 
101 STAT. 1528 
PUBLIC LAW 100-223—DEC. 30, 1987 
(2) REPORT.—Not later than September 30, 1989, the Secretary 
shall transmit to Congress a report on the results of the study 
conducted under paragraph (1). 
(3) AUTHORIZATION.—There shall be available for carrying out 
this subsection from the Airport and Airway Trust Fund 
' ' 
' '» 
$500,000 for fiscal year 1988. Such funds shall remain available 
until expended. 
Regulations. 
(c) DEVELOPMENT OF MINIMUM STANDARDS.—Not 
l a t e r 
t h a n 
September 30, 1989, the Administrator shall establish by regulation 
minimum standards under which a radio navigation system may be 
certified as the sole radio navigation system required in an aircraft 
for operation in airspace of the United States. 
SEC. 311. REPORTING OF ACCIDENTS TO NTSB. 
' 
(a) GENERAL RULE.—Section 304(aX6) of the Independent Safety 
Board Act of 1974 (49 U.S.C. App. 1903(a)(6)) is amended to read as 
follows: 
"(6) establish by regulation requirements binding on persons 
reporting (A) accidents and aviation incidents subject to the 
Board's investigatory jurisdiction under this subsection, and (B) 
, ' accidents and aviation incidents involving public aircraft other 
than aircraft of the Armed Forces and the Intelligence 
Agencies;". 
Ot)) REPORT TO CONGRESS.—Not later than 18 months after the date 
of the enactment of this Act, the National Transportation Safety 
Board shall report to the Congress its findings on public aircraft 
accidents and incidents. 
SEC. 312. ATLANTIC CITY AIRPORT. 
^ f AJ > Ji3i / ^ ->;/; 
i. 
(a) LIMITATION ON FUNDING OR TRANSFERS OF PROPERTY.—Not-
withstanding any other provision of law, with regard to the Atlantic 
City Airport, at Pomona, New Jersey, the Federal Aviation Adminis-
tration shall not convey any interest in property (pursuant to 
section 516 of the Airport and Airway Improvement Act of 1982) to 
any municipality or any other entity operating such airport, nor 
shall any funds authorized to be appropriated for fiscal year 1987 by 
such Act be available to such municipality or entity for any plan-
ning, study, design, engineering, or construction of a runway exten-
sion, new runway, new passenger terminal, or improvements to or 
expansion of the existing passenger terminal at such airport, until 
such time as— 
(1) the master plan update for Atlantic City Airport and 
Bader Field, prepared pursuant to Federal Aviation Adminis-
tration Contract FA-EA-2656, is completed and released; and 
(2) the Administrator finds that a public entity has been 
created to operate and manage the Atlantic City Airport, which 
entity has the following characteristics: 
Contracts. 
(A) the authority to enter into contracts and other agree-
ments, including contracts, leases, cooperative agreements, 
or other transactions with any agency or instrumentality of 
est 
the United States; 
• ' 
(B) the standing to sue and be sued in its own name; 
(C) the authority to hire and dismiss officers and 
'iu •:• 
employees; 
f 3 
(D) the power to adopt, amend, and repeal bylaws, rules, 
and regulations governing the manner in which its business 
Regulations. 
49 u s e app. 1908 
note. 
New Jersey. 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1529 
may be conducted and the powers vested in it may be 
exercised; 
(E) the authority to acquire, in its own name, an interest Real property. 
in such real or personal property as is necessary or appro-
priate for the operation and maintenance of the airport; 
(F) the power to acquire property by the exercise of the 
right of eminent domain; 
(G) the power to borrow money by issuing marketable Securities. 
obligations, or such other means as is permissible for public 
authorities under the laws of the State of New Jersey; 
(H) adequate financial resources to carry out all activities 
which are ordinarily necessary and appropriate to operate 
and maintain an airport; 
(I) a governing board which includes (but need not be 
limited to) voting representatives of the city of Atlantic 
City, the county of Atlantic, and the municipalities which 
are a4jacent to or are directly impacted by the airport; 
(J) a charter which includes (i) a requirement that mem-
bers of the governing board have expertise in transpor-
tation, finance, law, public administration, aviation, or such 
other qualifications as would be appropriate to oversee the 
planning, management, and operation of an airport, and (ii) 
procedures which protect the research and development 
mission of the Federal Aviation Technical Center at 
Pomona, New Jersey, and the defense functions of the Air 
National Guard; and 
(K) the authority to cany out comprehensive transpor-
tation planning to minimize the traffic congestion and 
facilitate access to and from the airport. 
0)) SAFETY FUNDS NOT SUBJECT TO LIMITATION.—The limitation on 
funds set forth in subsection (a) shall not applv to any expenditure 
which the Administrator determines is needed for safety purposes. 
(c) AVAILABILITY OP RESTRICTED FUNDS.—Notwithstanding any 
other provision of law, the funds restricted under subsection (a) shall 
become available at such time as the conditions set forth in subsec-
tion (a) are satisfied. 
SEC. 313. RELEASE OF CERTAIN CONDITIONS. 
(a) STAPLETON INTERNATIONAL AIRPORT, DENVER, COLORADO.— 
(1) AUTHORITY TO GRANT RELEASE.—Notwithstanding section 
16 of the Federal Airport Act (as in effect on the date of each 
conveycmce referred to in this subsection) with respect to such 
conveyance, the Secretary is authorized, subject to the provi-
sions of section 4 of the Act of October 1, 1949 (63 Stat. 700; 50 
U.S.C. App. 1622c), and the provisions of paragraph (2) of this 
subsection, to grant release— 
(A) from any of the terms, conditions, reservations, and 
restrictions contained in each deed of conveyance under 
which the United States conveyed property to the city and 
county of Denver, Ck)lorado, on wMch any portion of 
1 
I" Stapleton International Airport is located; and 
(B) from any assurance made by the sponsor of such 
airport for a grant under the Airport and Airway Improve-
ment Act of 1982 for a project at such airport. 
(2) CONDITIONS.—Any release granted by the Secretary under 
para^aph (1) of this subsection shall be subject to the following 
conditions: 
Real property. 
State and local 
governments. 
101 STAT. 1530 
PUBLIC LAW 100-223—DEC. 30, 1987 
5 i ve 
(A) The city and county of Denver, Colorado, shall agree 
that in conveying any interest in the property which the 
.•;!' T
»
"
i J ' 
United States conveyed to the city and county by the deeds 
described in paragraph (1) the city and county will receive 
an amount for such interest which is equal to the fair 
market value (as determined pursuant to regulations issued 
by the Secretary). 
,' 1 .-. ,« 
^
f 
(B) Any such amount so received by the city and county 
shall be used by the city and county for the development, 
construction, and improvement of (i) a new Denver air 
carrier airport, and (ii) a reliever airport in the event that 
the operation of the new air carrier airport severely re-
stricts the operation of the nearby reliever airport. In no 
• 
event shall such amount be used for operation or mainte-
nance of such airports. 
(C) The city and county shall agree not to convey any 
interest in the property which the United States conveyed 
to the city and county by the deeds described in paragraph 
(1) until the opening and initial operation of a primary 
airport to replace Stapleton International Airport, unless 
the Secretary determines that any such property is not 
essential for the operation of Stapleton International 
Airport, 
(b) HAWAII.— 
(1) AUTHORITY TO GRANT RELEASE.—Notwithstanding section 
23 of the Airport and Airway Development Act of 1970 (as in 
.-. 
effect on April 6, 1982), the Secretary is authorized, subject to 
|sf 
the provisions of section 4 of the Act of October 1, 1949 (63 Stat. 
700; 50 U.S.C. App. 1622c), and the provisions of paragraph (2) of 
this subsection, to grant releases from any of the terms, condi-
tions, reservations, and restrictions contained in the deed of 
conveyance, dated April 6, 1982, under which the United States 
conveyed certain property to the State of Hawaii for airport 
purposes. 
(2) CONDITIONS.—Any release granted by the Secretary under 
paragraph (1) of this subsection shall be subject to the following 
conditions: 
(A) The property for which a release is granted under this 
sulDsection shall not exceed 2.280 acres. 
(B) The State of Hawaii shall agree that, in conveying any 
interest in the property which the United States conveyed 
to the State by a deed described in paragraph (1), the State 
will receive an amount for such interest which is equal to 
the fair market value. 
(C) Any amount so received shall be used for airport 
purposes only. 
(D) In the event land or any interest therein is received in 
exchange for all or part of the 2.280 acres, the deed of 
conveyance of such land or interest will contain language 
\v 
mandating that— 
(i) the land or interest must be used for airport 
io-v 
. 
purposes only; 
-"VCK:- ' 
(ii) such land or interest in land received by the State 
of Hawaii may not be conveyed by the State, except by 
approval of the Federal Government, pursuant to the 
authority vested in the Secretary under section 4 of the 
Act of 1949 (63 Stat. 700; 50 U.S.C. App. 1622c); 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1531 
(iii) such conveyance by the State of Hawaii shall be 
subject to receipt of fair market value; and 
(iv) the proceeds from such conveyance by the State 
of Hawaii shall be used for airport purposes only, 
(c) LAREDO INTERNATIONAL AIRPORT, LAREDO, TEXAS.— 
(1) AUTHORITY TO GRANT RELEASE.—Subject to paragraph (2), 
in recognition of the benefits to the public, the city of Laredo, 
Texas, and its successors and assigns are hereby released from 
all terms, conditions, reservations, and restrictions contained in 
the instrument of disposal dated February 21, 1975, by which 
the United States conveyed the property on which the Laredo 
International Airport, Laredo, Texas, is located to such city to 
the extent that such terms, conditions, reservations, and restric-
tions apply to the portion of such property consisting of approxi-
mately 680.1586 acres of land which is designated under the 
1985 master plan and land use plan for the Laredo Inter-
national Airport as being available for nonaviation purposes. 
(2) CONDITIONS.—The release granted by paragraph (1) shall 
be subject to the following conditions: 
(A) All revenues derived from the property to which such 
release applies shall be used for development, improve-
ment, operation, and maintenance of the Laredo Inter-
national Airport. 
vr? : B i f 
I, 
(B) The use of property to which such release applies 
shall not interfere with the operation and maintenance of 
such airport. 
(C) Property to which such release applies may only be 
rented or leased if the term of the rental or lease agreement 
is 20 years or less and if compensation which is not less 
r . 
than— 
(i) Vi of fair market value is received in the case of a 
7(1 
rental or lease agreement for a term of 10 years or less; 
and 
V i ; 
(ii) Vz of fair market value is received in the case of a 
rental or lease agreement for a term of more than 10 
years. 
(D) Property to which such release applies may only be 
transferred if compensation which is equal to or more than 
fair market value is received. 
(E) The city of Laredo, Texas, shall provide to the 
Administrator— 
(i) an accounting and management plan acceptable to 
'^ 
the Administrator for managing the Laredo Inter-
national Airport general fund; and 
(ii) an explanation of the management by such city of 
such general fund in calendar years beginning after 
December 31, 1977, and ending before the date of the 
enactment of this Act. 
(3) IMPLEMENTATION.—The Administrator shall take such 
action as may be necessary to carry out the provisions of this 
subsection. 
SEC. 314. FLIGHT SERVICE STATION IN JUNEAU, ALASKA. 
Public 
(a) DESIGNATION.—The Federal Aviation Administration flight 
grounds. 
service station located in Juneau, Alaska, shall be known and 
designated as the "Dave Scheytt Flight Service Station". 
101 STAT. 1532 
PUBLIC LAW 100-223—DEC. 30, 1987 
(b) LEGAL REFERENCE.—Any reference in a law, map, regulation, 
document, or other paper of the United States to the flight service 
station referred to in subsection (a) shall be deemed to be a reference 
to the "Dave Scheytt Flight Service Station". 
SEC. 315. GRAND CANYON AIRPORT. 
(a) STUDY.—The Secretary shall conduct a study of methods of air 
traffic control which might be utilized at the Grand Canyon Airport, 
including the feasibility of installing radar for air traffic control 
purposes. 
(b) REPORT.—Not later than the 180th day following the date of 
the enactment of this Act, the Secretary shall report to Congress the 
results of the study conducted under subsection (a), together with 
recommendations. 
A
i
r
p
o
r
t a
n
d 
TITLE IV—EXTENSION OF AVIATION-RE-
tr^fi^sr""' 
LATED 
TAXES AND AIRPORT AND 
AIRWAY TRUST FUND SPENDING AU-
THORITY 
26 u s e 1 note. 
SEC. 401. SHORT TITLE. 
This title may be cited as the "Airport and Airway Revenue Act of 
1987". 
SEC. 402. 3-YEAR EXTENSION OF AVIATION-RELATED TAXES. 
(a) IN GENERAL.—The following provisions of the Internal Reve-
nue Code of 1986 are each amended by striking out "January 1, 
1988" each place it appears and inserting in lieu thereof "January 1, 
1991": 
(1) Section 4261(f) (relating to transportation of persons by 
air). 
(2) Section 4271(d) (relating to transportation of property by 
air). 
(3) Section 9502(b) (relating to transfer to Airport and Airway 
Trust Fund of amounts equivalent to certain taxes). 
(b) FUEL USED IN NONCOMMERCIAL AVIATION.—Paragraph (5) of 
section 4041(c) of such Code (relating to noncommercial aviation) is 
amended by striking out "December 31, 1987" and inserting in lieu 
thereof "December 31,1990". 
SEC. 403. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND SPENDING 
AUTHORITY. 
(a) EXPENDITURES FROM TRUST FUND.—The material preceding 
subparagraph (A) of paragraph (1) of section 9502(d) of the Internal 
Revenue Code of 1986 (relating to expenditures from Airport and 
Airway Trust Fund) is amended by striking out "October 1, 1987" 
and inserting in lieu thereof "October 1,1992". 
O
t
>
) TRUST FUND PURPOSES.—Subparagraph (A) of section 9502(dXl) 
of such Code is amended by striking out "(as such Acts were in effect 
on the date of the enactment of the Surface Transportation Assist-
ance Act of 1982)" and inserting in lieu thereof "or the Airport and 
una 
Airway Safety and Capacity Expansion Act of 1987 (as such Acts 
were m effect on the date of tne enactment of the Airport and 
Airway Safety and Capacity Expansion Act of 1987)". ^ 
i . jjv.iv -
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1533 
SEC. 404. EXEMPTION FOR CERTAIN EMERGENCY MEDICAL TRANSPOR-
TATION BY HELICOPTER 
(a) IN GENERAL.—Section 4261 of the Internal Revenue Code of 
1986 (relating to imposition of tax on transportation by air) is 26 USC 4261. 
amended by redesignating subsection (f) as subsection (g) and by 
inserting after subsection (e) the following new subsection: 
"(f) EXEMPTION FOR CERTAIN EMERGENCY MEDICAL TRANSPOR-
TATION.—No tax shall be imposed under this section or section 4271 
on any air transportation by helicopter for the purpose of providing 
emergency medical services if such helicopter— 
"(1) does not take off from, or land at, a facility eligible for 
assistance under the Airport and Airway Development Act of 
1970 during such transportation, and 
"(2) does not otherwise use services provided pursuant to the 
Airport and Airway Improvement Act of 1982 during such 
transportation." 
(b) TAX FREE SALES.—Subsection (1) of section 4041 of such Code 
(relating to exemption for certain helicopter uses) is amended to 
read as follows: 
"(1) EXEMPTION FOR CERTAIN HEUCOPTER USES.—No tax shall be 
imposed under this section on any liquid sold for use in, or used in, a 
helicopter for purposes of providing transportation with respect to 
which the requirements of subsection (e) or (f) of section 4261 are 
met." 
(c) TECHNICAL AMENDMENT.—Subsection (e) of section 4261 of such 
Code is amended by striking out "System Improvement Act" and 
inserting in lieu thereof "Improvement Act". 
(d) EFFECTIVE DATES.— 
(1) SUBSECTION (a).—The amendment made by subsection (a) 26 use 4261 
shall apply to transportation beginning after September 30, "ote. 
1988, but shall not apply to amounts paid on or before such date. 
(2) SUBSECTION (b).—The amendment made by subsection (b) 26 USC 4041 
shall take effect on October 1,1988. 
note. 
SEC. 405. REDUCTION IN AVIATION-RELATED TAXES WHERE APPROPRIA-
TIONS ARE SIGNIFICANTLY BELOW AUTHORIZATIONS. 
(a) IN GENERAL.—Part III of subchapter C of chapter 33 of the 
Internal Revenue Code of 1986 (relating to facilities and services) is 
amended by adding at the end the following new section: 
"SEC. 4283. REDUCTION IN AVIATION-RELATED TAXES IN CERTAIN CASES. 
26 USC 4283. 
"(a) REDUCTION IN RATES.—If the funding percentage is less than 
85 percent, with respect to any taxable event occurring during 
1990— 
"(1) subsections (a) and (b) of section 4261 (relating to tax on 
transportation of persons by air) shall each be applied by 
substituting '4 percent' for *8 percent', 
"(2) subsection (a) of section 4271 (relating to tax on transpor-
tation of property by air) shall be applied by substituting '2.5 
percent' for '5 percent', 
"(3) paragraph (1) of section 4041(c) (relating to tax on certain 
fuels used in noncommercial aviation) shall be applied by 
substituting *
7 cents' for '14 cents', and 
"(4) paragraph (2) of section 4041(c) (relating to tax on gaso-
line used in noncommercial aviation) shall not apply. 
"(b) FUNDING PERCENTAGE.— 
101 STAT. 1534 
PUBLIC LAW 100-223—DEC. 30, 1987 
"(1) IN GENERAL.—For purposes of this section, the funding 
percentage is the percentage (determined by the Secretary) 
which— 
, 4 »
. y s;J ^-:^ 
"(A) the sum of— 
^ 
j 
"(i) the aggregate amounts obligated under section 
505 of the Airport and Airway Improvement Act of 
1982 for fiscal years 1988 and 1989, and 
"(ii) the aggregate amounts appropriated under 
subsections (a) and (b) of section 506 of such Act for 
such fiscal years, is of 
^•^. 
"(B) the sum of— 
•\ 
"(i) the aggregate amounts authorized to be obligated 
under such section 505 for such fiscal years, and 
"(ii) the aggregate amounts authorized to be appro-
priated under subsections (a) and (b) of such section 506 
for such fiscal years. 
,]y 
"(2)RULESP0R APPLYING PARAGRAPH (1).— 
\j 
"(A) TREATMENT OF PRIOR YEAR AMOUNTS.—For purposes 
of paragraph (1), an £tmount shall be treated £is authorized, 
obligated, or appropriated only for the 1st fiscal year for 
which it is authorized, obligated, or appropriated, as the 
case may be. 
"(B) TREATMENT OF SEQUESTERED AMOUNTS.—The deter-
mination under paragraph (IXA) shall be made without 
regard to the sequestration of any amount described 
therein pursuant to an order under part C of title II of the 
Balanced Budget and Emergency Deficit Control Act of 
1985 (or any successor law). 
, V 
J.. 
"(8) DETERMINATION OF FUNDING PERCENTAGE.— 
"(A) IN GENERAL.—Not later than December 1, 1989, the 
Secretary shall determine— 
( ^jp,!*<' 
"(i) the funding percentage, and 
^V . 
"(ii) whether the rate reductions under this section 
shall apply to taxable events occurring during 1990. 
./.» 
"(B) DETERMINATIONS TO BE PUBUSHED IN FEDERAL REG-
ISTER.—As soon as practicable after making the determina-
tions under subparagraph (A), the Secretary shall publish 
such determinations in the Federal Register. 
"(c) TAXABLE EVENT.—For purposes of this section— 
"(1) TAXABLE TRANSPORTATION BY AIR.—In the case of the 
taxes imposed by sections 4261 and 4271, the taxable event shall 
be treated as occurring when the payment for the taxable 
transportation is made. 
"(2) SALE OR USE OF FUEL.—In the case of the taxes imposed by 
section 4041(c), the taxable event shall be the sale or use on 
which tax is imposed." 
(b) REFUND OF FUEL TAXES ON NONCOMMERCIAL AVIATION WHERE 
RATE REDUCTION IN EFFECT.— 
(1) IN GENERAL.—Section 6427 of such Code (relating to fuels 
not used for taxable purposes) is amended by redesignating 
subsection (p) as subsection (q) and by inserting after subsection 
(o) the following new subsection: 
"(p) GASOUNE USED IN NONCOMMERCIAL AVIATION DURING PERIOD 
RATE REDUCTION IN EFFECT.—Except as provided in subsection (k), 
if— 
"(1) any tax is imposed by section 4081 on any gasoline, 
;•,'• ''XtK 
^:iii 
PUBLIC LAW 100-223—DEC. 30, 1987 
101 STAT. 1535 
"(2) such gasoline is used during 1990 as a fuel in any aircraft 
in noncommercial aviation (as defined in section 4041(cX4)), and 
"(3) no tax is imposed by section 4041(cX2) on taxable events 
occurring during 1990 by reason of section 4283, 
the Secretary shall pay (without interest) to the ultimate purchaser 
of such gasoline an amount equal to the excess of the aggregate 
amount of tax paid under section 4081 on the gasoline so used over 
an amount equal to 6 cents multiplied by the number of gallons of 
gasoline so used." 
(2) TECHNICAL AMENDMENTS.— 
? 5v w 
(A) Paragraph (1) of section 6427(i) of such Code is 
amended by striking out "or (h)" and inserting in lieu 
thereof "(h), or (p)". 
(B) Qause (i) of section 6427(iX2XA) of such Code is 
amended by striking out "and (h)" and inserting in lieu 
thereof "(h), and (p)". 
(3) CROSS REFERENCE.—Subsection (c) of section 4041 of such 
Code is amended by adding at the end thereof the following new 
paragraph: 
"(6) REDUCTION IN RATES OF TAX IN CERTAIN CIRCUMSTANCES.— 
For reduction of rates of taxes imposed by paragraphs (1) and (2) 
in certain circumstances, see section 4283." 
(c) CLERICAL AMENDMENT.—The table of sections for part III of 
subchapter C of chapter 33 of such Code is amended by adding at the 
end the following new item: 
"Sec. 4283. Reduction in aviation-related taxes in certain cases." 
Approved December 30, 1987. 
LEGISLATIVE HISTORY—H.R. 2310 (S. 1184): 
HOUSE REPORTS: No. 100-123, Pt. 1 (Comm. on Science, Space, and Technology) and 
Pt. 2 (Comm. on Public Works and Transportation) and No. 
100-484 (Comm. of Conference). 
SENATE REPORTS: No. 100-99 accompanying S. 1184 (Comm. on Commerce, Science, 
and Transportation). 
CONGRESSIONAL RECORD, Vol. 133 (1987): 
Oct. 1, considered and passed House. 
Oct. 28, considered and passed Senate, amended, in lieu of S. 1184. 
Dec. 17, Senate agreed to conference report. 
Dec. 18, House agreed to conference report.