[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1356 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 1356
To amend title 49, United States Code, to authorize appropriations for
the Federal Aviation Administration for fiscal years 2008 through 2010,
to improve aviation safety and capacity, to provide stable, cost-based
funding for the national aviation system, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 6, 2007
Mr. Oberstar (for himself, Mr. Mica, Mr. Costello, and Mr. Petri) (all
by request) introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure, and in addition to the
Committees on Science and Technology, and Ways and Means, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend title 49, United States Code, to authorize appropriations for
the Federal Aviation Administration for fiscal years 2008 through 2010,
to improve aviation safety and capacity, to provide stable, cost-based
funding for the national aviation system, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Next Generation
Air Transportation System Financing Reform Act of 2007''.
(b) Table of Contents.--
Sec. 1. Short title; Table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Effective date.
TITLE I--AUTHORIZATIONS
Sec. 101. Authorizations for General Fund, air traffic functions,
safety and operations.
Sec. 102. Airport planning and development and noise compatibility
planning and programs.
Sec. 103. Airline data and analysis.
Sec. 104. Office of Commercial Space Transportation.
Sec. 105. Transition.
TITLE II--USER FEE AUTHORITY
Sec. 201. Fees.
Sec. 202. Conforming Amendments.
TITLE III--AIRPORT IMPROVEMENT PROGRAM
Sec. 301. Reform of passenger facility charge authority.
Sec. 302. Amendments to AIP definitions.
Sec. 303. Amendments to grant assurances.
Sec. 304. Government share of project costs.
Sec. 305. Amendments to allowable costs.
Sec. 306. Simplification and reform of apportionment formulas.
Sec. 307. Minimum amount for discretionary fund.
Sec. 308. Funding of space transportation infrastructure grants
program.
Sec. 309. Repeal of small airport fund.
Sec. 310. Creation of new small airport set-aside, and repeal of
military and reliever airport set-asides.
Sec. 311. Military Airport Program.
Sec. 312. Sale of private airport to public sponsor.
Sec. 313. Sunset of airport security program.
Sec. 314. Sunset of pilot program for purchase of airport development
rights.
Sec. 315. Extension of grant authority for compatible land use planning
and projects by State and local
governments.
Sec. 316. Midway Island Airport.
Sec. 317. Pilot program for airport takeover of air navigation
facilities.
Sec. 318. ADS-B Support Pilot Program
Sec. 319. AIP eligibility for Metropolitan Washington Airports
Authority.
Sec. 320. Miscellaneous Amendments.
TITLE IV--MANAGEMENT AND ORGANIZATION
Sec. 401. Air Transportation System Advisory Board.
Sec. 402. Facilitation of Next Generation air traffic services.
Sec. 403. Clarification of authority to enter into reimbursable
agreements.
Sec. 404. Definition of air navigation facility.
Sec. 405. Improved management of property inventory.
Sec. 406. Clarification to acquisition reform authority.
Sec. 407. Assistance to foreign aviation authorities.
Sec. 408. Presidential Rank Award Program.
Sec. 409. Realignment and consolidation of aviation facilities and
services.
Sec. 410. Operational and approach procedures by third parties through
delegation.
Sec. 411. Judicial review of denial of airman certificates.
Sec. 412. Release of data relating to abandoned type certificates and
supplemental type certificates.
Sec. 413. Design Organization Certificates.
Sec. 414. Contract tower program.
Sec. 415. Enhanced Oversight of Next Generation Air Transportation
System Joint Planning and Development
office.
TITLE V--AVIATION SAFETY, SECURITY, CAPACITY AND CONNECTIVITY
IMPROVEMENTS
Sec. 501. Disclosure of data to Federal agencies in interest of
national security.
Sec. 502. FAA access to criminal history records or database systems.
Sec. 503. Allocation of operating authorizations at LaGuardia airport.
Sec. 504. Pilot program for market-based mechanisms at congested
airports.
TITLE VI--ENVIRONMENTAL STEWARDSHIP AND STREAMLINING
Sec. 601. Airport Cooperative Research Program.
Sec. 602. State Block Grant Program.
Sec. 603. Airport funding of special studies or reviews.
Sec. 604. Environmental Mitigation Demonstration Pilot Program.
Sec. 605. Grant eligibility for assessment of flight procedures.
Sec. 606. Research consortium for lower energy, emissions and noise
technology partnership.
Sec. 607. Amendments to Air Tour Management Program.
TITLE VII--AVIATION INSURANCE
Sec. 701. General Authority.
Sec. 702. Extension of authority to limit third party liability of air
carriers arising out of acts of terrorism.
Sec. 703. Clarification on reinsurance authority.
Sec. 704. Use of independent claims adjusters.
Sec. 705. Extension of aviation program authority.
TITLE VIII--AVIATION SERVICE IMPROVMENTS
Sec. 801. Extension of competitive access reports.
Sec. 802. Essential air service reform.
Sec. 803. Termination of DOT authority to set international mail rates.
Sec. 804. Air carriage of international mail.
Sec. 805. Contents of competition plans.
Sec. 806. Airport privatization.
Sec. 807. Clarification of air carrier fee disputes.
Sec. 808. Amendments to chapter 415.
TITLE IX--INTERNAL REVENUE CODE AMENDMENTS
Sec. 901. Amendment of 1986 Code.
Sec. 902. Modifications to tax on aviation fuel.
Sec. 903. Modifications to tax on transportation of persons by air.
Sec. 904. Extension of Airport and Airway Trust Fund expenditure
authority.
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or a
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of title 49,
United States Code.
SEC. 3. EFFECTIVE DATE.
Except as otherwise expressly provided, this Act and the amendments
made by this Act shall be effective on the date of enactment.
TITLE I--AUTHORIZATIONS
SEC. 101. AUTHORIZATIONS FOR SAFETY AND OPERATIONS, AIR TRAFFIC
FUNCTIONS, RESEARCH AND DEVELOPMENT.
(a) In General.--Part C of subtitle VII is amended by striking
chapter 482 and inserting in lieu thereof the following:
``CHAPTER 482--AUTHORIZATIONS FOR AIR TRAFFIC FUNCTIONS, SAFETY AND
OPERATIONS, AND RESEARCH AND DEVELOPMENT
``Sec.
``48201. Air Traffic Organization.
``48202. Safety and operations.
``48203. Civil aviation research and development.
``48204. General fund authorization.
``Sec. 48201. Air Traffic Organization
``(a) Air Traffic Organization Account.--On October 1, 2007, the
Secretary of the Treasury shall establish on the books of the Treasury
a separate account to be known as the `Air Traffic Organization'.
``(b) Authorization of Appropriations.--In addition to amounts from
the general fund of the Treasury as authorized in section 48204, not
more than a total of the following amounts may be appropriated to the
Secretary of Transportation out of the Airport and Airway Trust Fund
established under section 9502 of the Internal Revenue Code of 1986 (26
U.S.C. 9502) for capital, operating and overhead costs of providing air
traffic control and related services:
``(1) $7,915,516,000 for fiscal year 2008;
``(2) $1,130,000,000 for fiscal year 2009; and
``(3) $1,126,000,000 for fiscal year 2010.
``(c) User Fees.--(1) In addition to amounts authorized under
subsection (b), amounts credited to the account established under
subsection (a) from fees collected under section 45305 of this title
are authorized to be used for capital, operating and overhead costs of
providing air traffic control and related services, as well as for the
costs related to the assessment and collection of these fees.
``(2) Notwithstanding any other provision of law, amounts credited
to the account established under subsection (a) shall be used only to
carry out the air traffic functions of the Federal Aviation
Administration.
``(d) Availability of Amounts.--Amounts appropriated under this
section shall remain available until expended.
``Sec. 48202. Safety and operations
``(a) Safety and Operations Account.--On October 1, 2007, the
Secretary of the Treasury shall establish on the books of the Treasury
a separate account to be known as the `Safety and Operations'.
``(b) Authorization of Appropriations.--In addition to amounts from
the general fund of the Treasury as authorized in section 48204, not
more than a total of the following amounts may be appropriated to the
Secretary of Transportation out of the Airport and Airway Trust Fund
established under section 9502 of the Internal Revenue Code of 1986 (26
U.S.C. 9502) for programs, activities and services relating to the
Federal Aviation Administration's safety programs, services to the
commercial space industry and other staff support functions:
``(1) $671,594,000 for fiscal year 2008;
``(2) $69,000,000 for fiscal year 2009; and
``(3) $69,000,000 for fiscal year 2010.
``(c) User Fees.--(1) Amounts credited to the account established
under subsection (a) from fees collected under sections 45305 and 45306
of this title, are authorized to be used for programs, activities and
services relating to the Federal Aviation Administration's safety
programs and other staff support functions, as well as for the costs
related to the assessment and collection of these fees.
``(2) Notwithstanding any other provision of law, amounts credited
to the account established under subsection (a) shall be used only to
carry out the safety programs, services to the commercial space
industry, and staff support functions of the Federal Aviation
Administration.
``(d) Availability of Amounts.--Amounts appropriated under this
section shall remain available until expended.
``Sec. 48203. Civil aviation research and development
``(a) Authorization.--In addition to amounts from the general fund
of the Treasury as authorized in section 48204, not more than the
following amounts may be appropriated out of the Airport and Airway
Trust Fund established under section 9502 of the Internal Revenue Code
of 1986 (26 U.S.C. 9502), to the Secretary of Transportation for
conducting civil aviation research and development under sections
44504, 44505, 44507, 44509, and 44511-44513 of this title:
``(1) $122,867,000 for fiscal year 2008;
``(2) $174,000,000 for fiscal year 2009; and
``(3) $174,000,000 for fiscal year 2010.
``(b) Availability of Amounts.--Amounts appropriated under this
section shall remain available until expended.
``Sec. 48204. General Fund Authorization
``(a) Not more than the following amounts may be appropriated under
this chapter from the general fund of the Treasury to the Secretary of
Transportation for activities or services, the cost of which is not
otherwise funded by fees established under chapter 453 of this title or
by funds made available from the Airport and Airway Trust Fund, related
to aviation safety regulation and oversight, research and development,
air traffic services provided to military, public or air ambulance
aircraft, operation of Flight Service Stations and Automated Flight
Service Stations, operation of air traffic control towers at airports
with fewer than 100,000 passenger boardings per year, services to the
commercial space industry, or other Federal Aviation Administration
programs in the general public interest, including the capital,
operating, and overhead costs for such activities or services:
``(1) $2,618,322,000 for fiscal year 2008;
``(2) $2,582,000,000 for fiscal year 2009; and
``(3) $2,582,000,000 for fiscal year 2010.''.
``(b) Conforming Amendment.--The analysis of Part C of Subtitle VII
is amended by revising the entry for chapter 482 to read as follows:
``482. Authorizations for air traffic functions, safety and 48201.''.
operations, research and development and general fund.....
SEC. 102. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY
PLANNING AND PROGRAMS.
(a) Authorization.--Section 48103 is amended--
(1) in the first sentence, by striking ``The'' and
inserting ``(a) Authorization.--The'';
(2) by striking ``September 30, 2003'' and inserting
``September 30, 2007'';
(3) by striking paragraphs (1) through (4) and inserting
the following:
``(1) $2,750,000,000 for fiscal year 2008;
``(2) $2,900,000,000 for fiscal year 2009; and
``(3) $3,050,000,000 for fiscal year 2010.''; and
(4) by inserting at the end the following:
``(b) Airport Cooperative Research Program.--Not more than
$15,000,000 per year for fiscal years 2008, 2009 and 2010 may be
appropriated to the Secretary of Transportation from the amounts made
available each year under subsection (a) for the Airport Cooperative
Research Program under section 44511 of this title, of which not less
than $5,000,000 per year shall be for research activities related to
the airport environment, including reduction of community exposure to
civil aircraft noise, reduction of civil aviation emissions, or
addressing water quality issues.''.
(b) Obligational Authority.--Section 47104(c) is amended by
striking ``September 30, 2007'' and inserting ``September 30, 2010''.
SEC. 103. AIRLINE DATA AND ANALYSIS.
(a) Authorization.--There is authorized to be appropriated to the
Secretary of Transportation out of the Airport and Airway Trust Fund
established by section 9502 of the Internal Revenue Code of 1986 (26
U.S.C. 9502), $4,000,000 per year for fiscal year 2008, and $6,000,000
for fiscal years 2009 and 2010 to fund airline data collection and
analysis by the Bureau of Transportation Statistics in the Research and
Innovative Technology Administration of the Department of
Transportation.
(b) In fiscal year 2009, the Secretary shall reform, by the most
efficient means available, the aviation economic data program for the
collection and dissemination of airline traffic and financial data.
SEC. 104. OFFICE OF COMMERCIAL SPACE TRANSPORTATION.
Section 70119 is amended--
(1) in paragraph (4), by striking ``and'';
(2) in paragraph (5), by striking ``2009.'' and inserting
``2009; and''; and
(3) by inserting at the end:
``(6) $15,224,000 for fiscal year 2010.''.
SEC. 105. TRANSITION.
(a) Authorization for Transition Period.--For the purpose of
supporting the transition to a user fee system of financing under
chapter 453, not more than $1,360,000,000 is authorized to be
appropriated to the Secretary of Transportation from the general fund
of the Treasury to provide services for an initial period of sixty days
for which user fees under sections 45305 (air traffic control and
related fees) and 45306 (registration, certification and related fees)
are assessed.
(b) Fee Surcharge.--The Administrator of the Federal Aviation
Administration shall, subject to appropriation in advance, impose and
collect a surcharge on the user fees established under sections 45305
and 45306 for fiscal year 2009 in an amount and manner so as to fully
recover and return to the general fund in fiscal year 2009 the amount
used for transition costs under this section.
TITLE II--USER FEE AUTHORITY
SEC. 201. FEES.
(a) In General.--Chapter 453 is amended by adding at the end the
following:
``Sec. 45305. Air traffic control and related fees
``(a) Schedule of Fees.--(1) Not later than the date of transition,
the Administrator of the Federal Aviation Administration shall
establish fees for air traffic control and related activities,
services, facilities and equipment provided by, or on behalf of, the
Administration in accordance with this section. Except as provided in
subsection (c), owners or operators of aircraft in the national
airspace system shall pay the fees assessed under this section. The
Administrator may establish separate fees for aircraft operating in
terminal, enroute, or oceanic airspace.
``(2) For purposes of this section and section 45306, `date of
transition' means October 1, 2008.
``(3) In establishing fees under paragraph (1), the Administrator
may establish interim fees for a period not to exceed one year after
the date of transition, and may impose a surcharge on such fees in
order to recover the full costs of services during the initial period
of transition to user fees. The establishment of such interim fees
would not be subject to the requirements of subsection (e)(2).
``(4) In accordance with this section, the Administrator may
periodically modify the fees established under this section either on
the Administrator's own initiative, based on the requirements of the
agency or the users of the National Airspace System, or on a
recommendation from the Board under subsection (e)(2) of this section.
``(b) Basis for Fees; Computation Methods.--(1) En Route and
Oceanic.--In establishing fees for aircraft operating in en route or
oceanic airspace, including fees for aircraft that operate in United
States controlled airspace but neither take off from, nor land in, the
United States, the Administrator may base the fee on distance traveled,
or on any other method that is consistent with the treaties and
international agreements to which the United States is a party.
``(2) Terminal Airspace.--For aircraft operations in terminal
airspace, the Administrator may establish a fee with the following
elements:
``(A) for takeoffs and landings at airports with greater
than 100,000 passenger boardings per year;
``(B) that may be based on the weight of the aircraft;
``(C) specifically for aircraft operating in terminal
airspace for a large hub airport, as defined by section
40102(a)(29);
``(D) specifically for terminal airspace for a large hub
airport that varies with the time of day, day of the week, or
for a particular large hub airport if the Administrator
determines--
``(i) that such airspace is congested;
``(ii) that such congestion results in whole or in
part from the limitation on the capacity of the large
hub airport or airports; and
``(iii) that establishing such a fee will help
reduce delays in the national airspace system; and
``(E) a fee that is different for nighttime operations than
for daytime operations.
``(3) Quantitative Standards.--For the purpose of the
determinations required by paragraphs (b)(2)(D), the Administrator
shall issue quantitative standards for the levels of airspace and
airport congestion, operating delays, effect of airport delay on
national system delay, and feasibility of increasing the capacity of a
congested airport, and make such determinations in accordance with
those standards.
``(4) Aircraft Altitude.--Nothing in this section shall require the
Administrator to take into account aircraft altitude in establishing
any fee for aircraft operations in terminal, en route or oceanic
airspace.
``(5) Incentive for Equipage.--The Administrator may establish
reduced fees for aircraft that are equipped with avionics whose use the
Administrator determines would enhance the safety or efficiency of the
National Airspace System if the Administrator finds that such a fee
structure would create an incentive for the purchase and installation
of such equipment.
``(6) Relation to Costs.--The fees established under this section
shall be based on the costs to the Administration of providing the air
traffic control and related activities, services, facilities, and
equipment using the available data derived from the agency's cost
accounting system and cost allocation system to users. For purposes of
this section, the term `costs' means those costs associated with the
operation, maintenance, debt service, and overhead expenses of the
services provided and the facilities and equipment used in such
services, including the projected costs for the period during which the
services will be provided, but shall not include the cost of providing
services to aircraft described in subsection (c).
``(7) Reserve.--The fees that the Administrator establishes under
this section may also include amounts sufficient to cover the costs of
providing air traffic control and related activities, services,
facilities and equipment in the event that receipts are less than
projected, whether such a shortfall is caused by a decrease in aircraft
operations, delinquent payment of fees by any person, or for another
comparable reason.
``(8) Annual Review.--The Administrator shall provide for an annual
independent review to validate that the agency used actual costs for
the year, which were prepared in accordance with generally accepted
accounting principles, and compiled those costs in accordance with the
agency's documented cost allocation methodology.
``(9) Fees Credited as Offsetting Collections.--Any fee authorized
to be collected under this section shall, subject to appropriation made
in advance--
``(A) be credited as offsetting collections to the account
established under section 48201(a) of this title; and
``(B) be available to the Administrator for expenditure
only to pay the costs of activities and services for which the
fee is imposed, including the costs to determine, assess,
review and collect the fee.
``(10) Effect of Law on Fee Collection.--The Administrator may
continue to assess and collect and spend fees established under this
section during any period in which the agency's funding is provided
under an Act providing continuing appropriations in lieu of the
agency's regular appropriations.
``(c) Exceptions.--(1) Military and Other Public Aircraft.--Fees
may not be assessed under this section for air traffic control and
related services provided to military aircraft, public aircraft (as
defined in section 40102 of this subtitle), air ambulance aircraft, or
to military or non-commercial civil aircraft of a foreign government.
``(2) General Aviation Operations.--Except for fees established for
operations in terminal airspace for a large hub airport under
subsection (b)(2), no fees may be established under this section for
air traffic control and related services provided to aircraft
operations using fuel for which a tax was paid under section 4081(a)(2)
(except taxes paid at the rate specified in section 4081(a)(2)(C)(i))
of title 26, United States Code. The exception provided by this
subparagraph shall cease to be effective if the rate of tax for fuel
under section 4081(a)(2) is lower than 70.0 cents per gallon, starting
on the date of transition, except if the lower rate is the result of
adjustments made under section 4081(a)(2) of title 26, United States
Code.
``(3) Flight Plan Information.--Any person required to file a
flight plan with the Administration, including operators of flights
described in paragraphs (1) and (2), must specify in the plan whether
the person is engaged in an operation for compensation or hire, or a
general aviation operation, or a military or public aircraft operation,
for purposes of this section.
``(4) Canada to Canada Flights.--The Administrator may waive a fee
that would otherwise be assessed under this chapter for flights that
operate in U.S.-controlled airspace but takeoff and land at an airport
in Canada without an intermediate stop outside Canada, if the
Administrator determines that not assessing and collecting the fee for
such flights would be in the public interest.
``(d) Administrative Provisions.--(1) Fees Payable to the
Administrator.--Fees assessed and amounts collected under this section
are payable to the Administrator. The Administrator may refund any fee,
or portion thereof, paid by mistake in excess of the amount required.
``(2) Collection Procedures.--The Administrator shall establish
procedures for the collection of fees. These procedures shall establish
the frequency of payment, deadlines for payment, a maximum amount of
fees that may be outstanding on the account of any person, and such
other limitations and conditions as the Administrator determines are
necessary to obtain prompt payment of fees.
``(3) Failure To Pay Required Fees.--If the Administrator
determines that any person has failed to pay fees when due under this
section, or to comply with any limitation or condition on payment under
this section, or to provide the Administration with the correct
information in the person's flight plan or by other means regarding the
nature of the flight, including whether the person engaged in an
operation for compensation or hire or general aviation operation, the
Administrator may--
``(A) assess interest charges, using a rate equal to 150
percent of a rate determined by the Secretary of the Treasury
based on the average of bond equivalent yields on 13-week
Treasury bills auctioned during the previous calendar quarter,
to be redetermined quarterly, on amounts that have not been
paid by the deadline;
``(B) change the required payment schedule for such person;
``(C) offset any amount of fees owed by withholding any
payment otherwise owed or due to the person by the Secretary or
the Administrator;
``(D) upon 24 hours notice, terminate, reduce, or withhold
the provision of non-emergency air traffic control and related
services to such person, except that, in any case involving a
foreign air carrier, the Administrator shall take such actions
as are necessary to comply with applicable international
agreements; or
``(E) impose a civil penalty for each day amounts remain
unpaid, or take other appropriate enforcement action under this
subtitle.
``(4) Action When Future Payment in Jeopardy.--If the Administrator
reasonably determines that an aircraft owner or operator will not pay
its required fees when due, the Administrator may--
``(A) change the required payment schedule for such person;
or
``(B) upon 24 hours notice, terminate, reduce, or withhold
the provision of non-emergency air traffic control and related
services to such person, except that, in any case involving a
foreign air carrier, the Administrator shall take such actions
as are necessary to comply with applicable international
agreements.
``(5) Payment Not Stayed Pending Review.--In any case where a
person seeks administrative review of the Administrator's action under
this section, the collection of fees from that person may not be stayed
pending resolution of the case.
``(e) Consultation Requirements; Approval of Fees.--(1) Prior to
establishing or modifying fees under this section or section 45306 of
this title, the Administrator shall consult with air carriers,
including foreign air carriers, consistent with international
agreements, and any other persons subject to such fees, and any other
member of the public who wishes to file comments. For purposes of the
section, `consult' means to afford the opportunity to provide comments
to, and have such comments considered by, the Administrator.
``(2) Prior to establishing or modifying fees under this section or
section 45306 of this title, the Administrator shall consult with and
seek the recommendations of the type and level of such fees from the
Air Transportation System Advisory Board (hereinafter `the Board')
established under section 106(p) of this title. The Board may, from
time to time, recommend that the Administrator modify established fees
based on the needs of the agency or the users of the National Airspace
System. If the Board fails to recommend approval of any fee proposed by
the Administrator, or if the Administrator fails to adopt the
recommendation of the Board, the Administrator may establish or
maintain such fees only after publishing in the Federal Register a
written determination setting forth the reasons for the Administrator's
establishment or modification of the fees and summarizing the views of
the Board.
``(3) Any person who is subject to fees established in this section
or section 45306 of this title, and who objects to the establishment or
amount of such fees may appeal that decision exclusively to the
Secretary of Transportation. The Secretary may disapprove the
establishment or modification of fees if the Secretary finds that the
fees--
``(A) are not, in the case of fees under this section,
based on costs as described in subsection (b)(6);
``(B) do not fairly allocate system costs among users who
pay fees;
``(C) unreasonably discriminate against a particular
category of users of the system; or
``(D) are not in accordance with the strategic plan of the
Administration.
``(4) The decision of the Administrator to establish or modify a
fee or schedule of fees under this section or section 45306 of this
title shall be effective unless disapproved by the Secretary within 60
days after submission of the Administrator's decision to the Secretary.
The decision of the Secretary constitutes final agency action and is
not subject to judicial review.
``(f) Effect on Other Fees.--Unless otherwise specified, nothing in
this section or section 45306 shall be construed as affecting fees
previously authorized and established under this chapter.
``(g) Exemption From Rulemaking.--The requirements applicable to
developing and issuing rules under title 5, United States Code, shall
not apply to the actions of the Secretary, Administrator, or Board
under this section.
``(h) Status of Airport.--Based on fiscal year 2006 data, the
Administrator shall publish a list of airports that meet the criteria
for a large hub airport under subsection (b)(2). The Administrator
shall periodically update such list. If in the fiscal year during which
the list is first published or in any subsequent fiscal year in which
the list of airports is updated, an airport meets the criteria for a
large hub airport under subsection (b)(2), such airport shall be deemed
to remain in such status for three years regardless of fluctuation in
the passenger boardings during that time.
``(i) Definitions.--For the purposes of this section--
``(1) `Air ambulance aircraft' means--
``(A) rotorcraft, which are engaged in an operation
to provide emergency medical services; or
``(B) fixed-wing aircraft, which are equipped for
and exclusively dedicated to providing acute care
medical services.
``(2) `enroute airspace' means airspace encompassing Class
A and Class E airspace listed in part 71 of title 14 of the
Code of Federal Regulations and subpart B of Federal Aviation
Administration Order 7400.9N or a successor order;
``(3) `terminal airspace' means airspace encompassing Class
B, Class C and Class D airspace listed in part 71 of title 14
of the Code of Federal Regulations and subpart B of Federal
Aviation Administration Order 7400.9N or a successor order.
``(4) `oceanic airspace' means U.S. controlled airspace
over an ocean.
``Sec. 45306. Registration, certification and related fees
``(a) Imposition of Registration Fees.--On the date of transition,
the Administrator shall establish the following fees for the following
services or activities:
``(1) $130 for registering an aircraft.
``(2) $45 for replacing an aircraft registration.
``(3) $130 for issuing an original dealer's aircraft
certificate.
``(4) $105 for issuing an additional aircraft certificate.
``(5) $80 for issuing a special registration number.
``(6) $50 for issuing a renewal of a special registration
number.
``(7) $130 for recording a security interest.
``(8) $130 for recording a security interest in aircraft
parts.
``(9) $50 for issuing an airman certificate.
``(10) $25 for issuing a replacement airman certificate.
``(11) $42 for issuing an airman medical certificate.
``(12) $100 for providing legal title opinions pertaining
to aircraft transactions.
``(b) Establishment of Certification Fees.--(1) The Administrator
shall establish fees for the following services or activities:
``(A) The appointment of a designee (other than designated
medical examiners).
``(B) The appointment of delegated organizations.
``(C) The training of a designee.
``(D) The issuance of a certificate to a flight school
under Part 141 of title 14 of the Code of Federal Regulations.
``(E) The issuance of a certificate to a training center
under Part 142 of title 14 of the Code of Federal Regulations.
``(F) The issuance of a certificate to a large domestic
repair station under part 145 of title 14 of the Code of
Federal Regulations.
``(G) The issuance of a certificate to a medium domestic
repair station under part 145 of title 14 of the Code of
Federal Regulations.
``(H) The issuance of a certificate to a small domestic
repair station under part 145 of title 14 of the Code of
Federal Regulations.
``(I) The issuance of a certificate to a large foreign
repair station under part 145 of title 14 of the Code of
Federal Regulations.
``(J) The issuance of a certificate to a medium foreign
repair station under part 145 of title 14 of the Code of
Federal Regulations.
``(K) The issuance of a certificate to a small foreign
repair station under part 145 of title 14 of the Code of
Federal Regulations.
``(L) The issuance of a certificate to a maintenance
technical school under part 147 of title 14 of the Code of
Federal Regulations.
``(M) Training provided to foreign aviation authorities.
``(2) Relation to Costs.--The fees that the Administrator
establishes and assesses under this section, shall be based on the
costs to the Administration of providing such activities and services
using the available data derived from the agency's cost accounting
system and cost allocation system to users. For purposes of this
section, the term `costs' shall mean those costs associated with
capital, operation and maintenance, and overhead, including the
projected costs for the period during which the services are provided.
``(c) Fees for Other Services.--The Administrator may establish and
collect such additional fees as may be necessary to cover the cost of
aviation certification, regulation, and related services not enumerated
in subsection (b), including any additional cost of providing services
outside the United States.
``(d) Fees Credited as Offsetting Collections.--(1) Any fee
authorized to be collected under this section shall, subject to
appropriation made in advance--
``(A) be credited as offsetting collections to the account
established under section 48202(a) of this title; and
``(B) be available for expenditure only to pay the costs of
activities and services for which the fee is imposed, including
the costs to determine, assess, review and collect the fee.
``(2) The Administrator may continue to assess and collect and
spend fees established under this section during any period in which
the agency's funding is provided under an Act providing continuing
appropriations in lieu of the agency's regular appropriations.
``(e) Adjustments.--The Administrator shall periodically adjust the
fees established by subsections (a) or (b) in the following
circumstances--
``(1) to account for changes in the Consumer Price Index of All
Urban Consumers published by the Secretary of Labor;
``(2) when data reveal that the cost of providing the service is
higher or lower than the cost data that was used to establish the fee
then in effect; or
``(3) when the Board recommends an adjustment in the fees, in
accordance with the procedures under subsection (g).
``(f) Administrative Provisions.--(1) Fees Payable to the
Administrator.--All fees assessed and amounts collected under this
section are payable to the Administrator. The Administrator may refund
any fee, or portion thereof, paid by mistake in excess of the amount
required.
``(2) Collection Procedures.--The Administrator shall establish
procedures for the collection of fees. These procedures shall establish
the frequency of payment, deadlines for payment, a maximum amount of
fees that may be outstanding on the account of any person, and such
other limitations and conditions as the Administrator determines are
necessary to obtain prompt payment of fees.
``(3) Failure To Pay Required Fees.--If the Administrator
determines that any person has failed to pay fees when due under this
section or to comply with any limitation or condition on payment under
this section, the Administrator may--
``(A) assess interest charges, using a rate equal to 150
percent of a rate determined by the Secretary of the Treasury
based on the average of bond equivalent yields on 13-week
Treasury bills auctioned during the previous calendar quarter,
to be redetermined quarterly, on amounts that have not been
paid by the deadline;
``(B) change the required payment schedule for such person;
``(C) upon 24 hours notice to the person, terminate, reduce
or withhold non-emergency services or in any case involving a
foreign air carrier, the Administrator shall take such actions
as are necessary to comply with applicable international
agreements; or
``(D) impose a civil penalty for each day amounts remain
unpaid, or take other appropriate enforcement action under this
subtitle.
``(4) Action When Future Payment in Jeopardy.--If the Administrator
reasonably determines that a person will not pay its required fees when
due, the Administrator may--
``(A) change the required payment schedule for such person;
or
``(B) upon 24 hours notice, terminate, reduce, or withhold
non-emergency services to such person, except that, in any case
involving a foreign air carrier, the Administrator shall take
such actions as are necessary to comply with applicable
international agreements.
``(5) Payment Not Stayed Pending Review.--In any case where a
person seeks administrative review of the Administrator's action under
this section, the collection of fees from that person may not be stayed
pending resolution of the case.
``(g) Procedure for Imposition of Fees.--In establishing or
modifying fees under this section, the procedures and requirements of
section 45305(e) of this title shall apply.
``(h) Exemption From Rulemaking.--The requirements applicable to
developing and issuing rules under title 5, United States Code, shall
not apply to the actions of the Secretary, Administrator, or Board
under this section.
``Sec. 45307. Rules of construction
``Notwithstanding any other law, the fees computed, established,
assessed, modified or approved under this chapter shall be governed by
the provisions of this chapter and not the provisions of section 9701
of title 31.
``Sec. 45308. Borrowing authority
``(a) In General.--(1) In order to support the transition to the
Next Generation Air Transportation System, in fiscal years 2013 through
2017 the Secretary of Transportation is authorized to issue obligations
to the Secretary of the Treasury to finance capital investments in the
facilities and equipment of the air traffic control system to be owned
and operated by the Federal Aviation Administration. The Secretary of
the Treasury, in the Secretary's discretion, may purchase any such
obligations, provided that the Secretary first determines that there is
reasonable assurance of repayment of such obligations.
``(2) The Secretary shall not issue any obligations under paragraph
(1) without first obtaining approval by the Director of the Office of
Management and Budget of the issuance of such obligations and proposed
investments to be financed.
``(b) Conditions and Limit on Indebtedness.--Obligations issued
under this section shall be in such forms and denominations, bear such
maturities, and shall be subject to such terms and conditions as may be
prescribed by the Secretary of the Treasury. The aggregate amount of
all such obligations shall not exceed $5,000,000,000 and all
obligations shall be repaid by the Secretary of Transportation by the
end of fiscal year 2017.
``(c) User Fee Increase.--Upon the issuance of obligations under
paragraph (1), the Secretary of Transportation shall increase the user
fees authorized in sections 45305 and 45306 in each of the fiscal years
2013 to 2017 in the amounts required to repay such obligations with
interest, and such payments shall have first priority in the use of
fees collected during this period. This increase in user fees shall not
be treated as discretionary offsetting collections and shall only be
used to repay the obligations incurred under paragraph (1).
``(d) Interest Rate.--The interest rate on obligations issued under
this section shall be a rate determined by the Secretary of the
Treasury, taking into consideration the current market yields on
outstanding marketable obligations of the United States of comparable
maturity, plus a surcharge, determined by the Secretary of the
Treasury, to be sufficient to cover any potential losses and the
administrative costs associated with the obligations. Any surcharges
for administrative costs collected by the Secretary of the Treasury
shall be credited to the appropriation account which incurred the cost.
``(e) Purchase of Obligations.--For the purposes of purchasing
obligations under subsection (a), the Secretary of the Treasury may use
as a public debt transaction the proceeds from the sale of any
securities issued under chapter 31 of title 31, United States Code, and
the purposes for which securities may be issued under such chapter are
extended to include any purchase of such obligations under this
subsection.''.
(b) Conforming Amendment.--
(1) The analysis of chapter 453 is amended--
(A) by inserting in the title after ``FEES'', ``AND
FINANCING'';
(B) by adding at the end the following:
``45305. Air traffic control and related fees.
``45306. Certification, registration, and related fees.
``45307. Rules of construction.
``45308. Borrowing authority.''.
(2) The analysis of Part A of subtitle VII is amended by
revising the entry for chapter 453 to read as follows:
``453. FEES AND FINANCING...........................45301 (reserved)''.
SEC. 202. CONFORMING AMENDMENTS.
(a) Civil Penalties.--Section 46301 is amended--
(1) in paragraph (a)(1)(A), by inserting ``chapter 453,''
before ``section 47107(b)''; and
(2) in paragraph (a)(5), by
(A) striking ``or chapter 449'' and inserting
``chapter 449''; and
(B) striking ``44907-44909)'' and inserting
``44907-44909), or chapter 453''.
(b) Fees for Overflights, Foreign Services and Services to General
Aviation.--Effective October 1, 2008, sections 45301 and 45302 are
repealed.
(c) Administrative Provisions.--Effective October 1, 2008, in
section 45303--
(1) subsections (a), (b) and (c) are repealed; and
(2) subsections (d), (e) and (f) are redesignated as (a),
(b) and (c) respectively.
TITLE III--AIRPORT IMPROVEMENT PROGRAM AMENDMENTS
SEC. 301. REFORM OF PASSENGER FACILITY CHARGE AUTHORITY.
(a) Broadening Eligibility.--(1) Section 40117 is amended--
(A) in the title, by striking ``fees'' and inserting
``charges'';
(B) in subsection (a)(3), by striking paragraphs (A)
through (G) and inserting:
``(A) A project for capital costs of the airport or
local airport system under section 47107(b)(1)(A) and
(B).
``(B) A project for capital costs of a local
facility that is directly and substantially related to
air transportation of passengers or property and that
is available for public use under section
47107(b)(1)(C).'';
(C) by revising paragraph (a)(4) to read as follows:
``(4) Intermodal ground access project.--The term
`intermodal ground access project' means a local facility that
is directly and substantially related to the movement of
passengers or property in the form of a fixed guideway system
(as defined in section 5302 of this title), that is a component
of a fixed guideway system that provides transportation
services to the general public or that connects to such a fixed
guideway system.'';
(D) in paragraph (a)(5), by striking ``FEE'' or ``fee''
each time it appears and inserting ``CHARGE'' or ``charge'',
respectively;
(E) in paragraph (a)(6), by striking ``fee.'' and inserting
``charge.''.
(2) Conforming Amendments.--(A) Section 47107(b)(1)(C) is amended
to read as follows:
``(C) any other local facility that is directly and
substantially related to air transportation of
passengers or property and that is available for public
use.''.
(B) Section 47133(a)(3) is amended to read as follows:
``(3) any other local facility that is directly and
substantially related to air transportation of passengers or
property and that is available for public use.''.
(b) Increase in PFC Maximum Level.--Section 40117(b) is amended--
(1) in paragraph (1)--
(A) by striking ``The Secretary of Transportation
may authorize under this section an eligible agency
to'' and inserting ``An eligible agency may'';
(B) by striking ``fee'' both times it appears and
inserting ``charge'';
(C) by striking ``or $3'' and inserting ``$3, $4,
$4.50, $5, $6''; and
(D) by inserting at the end, ``An eligible agency
that is approved by the Administrator to participate in
the pilot program established under section 44518 of
this title may impose a passenger facility charge of
$7.'';
(2) in paragraph (2), by inserting ``directly or
indirectly'' before ``regulate'';
(3) in paragraph (3), by striking ``fee'' and inserting
``charge''; and
(4) by striking paragraphs (4), (5) and (6).
(c) Passenger Facility Charge Streamlining.--Section 40117(c) is
revised to read as follows:
``(c) Procedural Requirements for Imposition of Passenger Facility
Charge.--(1) An eligible agency must submit to those air carriers and
foreign air carriers operating at the airport with a significant
business interest, as defined in paragraph (3), and to the Secretary
and make available to the public annually a report, in the form
required by the Secretary, on the status of the eligible agency's
passenger facility fee program, including the following:
``(A) the total amount of program revenue held by the
agency at the beginning of the twelve months covered by the
report;
``(B) the total amount of program revenue collected by the
agency during the period covered by the report;
``(C) the amount of expenditures with program revenue made
by the agency on each eligible airport-related project during
the period covered by the report;
``(D) each airport-related project for which the agency
plans to collect and use program revenue during the next
twelve-month period covered by the report, including the amount
of revenue projected to be used for such project;
``(E) the level of program revenue the agency plans to
collect during the next twelve-month period covered by the
report;
``(F) a description of the notice and consultation process
with air carriers and foreign air carriers under paragraph (3),
and with the public under paragraph (4), including a copies of
any adverse comments received and how the agency responded; and
``(G) any other information on the program that the
Secretary may require.
``(2) Implementation.--Subject to the requirements of paragraphs
(3) and (4), (5) and (6), the eligible agency may implement the planned
collection and use of passenger facility charges in accordance with its
report upon filing the report as required in paragraph (1).
``(3) Consultation With Carriers for New Projects.--(A) An eligible
agency proposing to collect or use passenger facility charge revenue
for a project not previously approved by the Secretary or not included
in a report required by paragraph (1) that was submitted in a prior
year, or an eligible agency proposing to increase the level of the
passenger facility charge to be collected at the airport, must provide
to air carriers and foreign air carriers operating at the airport
reasonable notice, and an opportunity to comment on the planned
collection and use of program revenue before providing the report
required under paragraph (1). The Secretary shall prescribe by
regulation what constitutes reasonable notice under this paragraph,
which shall at a minimum include--
``(i) that the eligible agency provide to air carriers and
foreign air carriers operating at the airport written notice of
the planned collection and use of passenger facility charge
revenue;
``(ii) that the notice include a full description and
justification for a proposed project;
``(iii) a detailed financial plan for the proposed project;
and
``(iv) the proposed level for the passenger facility
charge.
``(B) An eligible agency providing notice and an opportunity for
comment shall be deemed to have satisfied the requirements of this
paragraph if the eligible agency provides such notice to air carriers
and foreign air carriers that have a significant business interest at
the airport. For purposes of this paragraph, the term ``significant
business interest'' means an air carrier or foreign air carrier that--
``(i) had not less than 1.0 percent of passenger boardings
at the airport in the prior calendar year;
``(ii) had at least 25,000 passenger boardings at the
airport in the prior calendar year; or
``(iii) provides scheduled service at the airport.
``(C) Not later than 45 days after written notice is provided under
subparagraph (A), each air carrier and foreign air carrier may provide
written comments to the eligible agency indicating its agreement or
disagreement with the project or, if applicable, the proposed level for
a passenger facility charge.
``(D) The eligible agency may include, as part of the notice and
comment process, a consultation meeting to discuss the proposed project
or, if applicable, the proposed level for a passenger facility charge.
If the agency provides a consultation meeting, the written comments
specified in subparagraph (C) shall be due not later than 30 days after
the meeting.
``(4) Public Notice and Comment.--(A) An eligible agency proposing
to collect or use passenger facility charge revenue for a project not
previously approved by the Secretary or not included in a report
required by paragraph (1) that was filed in a prior year, or an
eligible agency proposing to increase the level of the passenger
facility charge to be collected, must provide reasonable notice and an
opportunity for public comment on the planned collection and use of
program revenue before providing the report required in paragraph (1).
``(B) The Secretary shall prescribe by regulation what constitutes
reasonable notice under this paragraph, which shall at a minimum
require--
``(i) that the eligible agency provide public notice of
intent to collect a passenger facility charge so as to inform
those interested persons and agencies that may be affected;
``(ii) appropriate methods of publication, which may
include notice in local newspapers of general circulation or
other local media, or posting of the notice on the agency's
internet website; and
``(iii) submission of public comments no later than 45 days
after the date of the publication of the notice.
``(5) Objections.--(A) Any interested person may file with the
Secretary a written objection to a proposed project or to a proposed
increase in the level of a passenger facility charge included in a
notice under this paragraph provided that the filing is made within 30
days after submission of the report specified in paragraph (1).
``(B) The Secretary shall provide not less than 30 days for the
eligible agency to respond to any filed objection.
``(C) Not later than 90 days after receiving the eligible agency's
response to a filed objection, the Secretary shall make a determination
whether or not to terminate authority to collect the passenger facility
charge for the project or at the increased level, based on the filed
objection. The Secretary shall state the reasons for any determination.
The Secretary may only terminate authority if--
``(i) the project is not an eligible airport related
project;
``(ii) the eligible agency has not complied with the
requirements of this section or the Secretary's implementing
regulations in proposing the project;
``(iii) the eligible agency has been found to be in
violation of section 47107(b) of this title and has failed to
take corrective action, prior to the filing of the objection;
or
``(iv) in the case of a proposed increase in the passenger
facility charge level, the level is not authorized by this
section.
``(D) Upon issuance of a decision terminating authority, the public
agency shall prepare an accounting of passenger facility revenue
collected under the terminated authority and restore the funds for use
on other authorized projects.
``(E) Except as provided in paragraph (C), the eligible agency may
implement the planned collection and use of a passenger facility charge
in accordance with its report upon filing the report as specified in
paragraph (1)(A).
``(6) Approval Requirement for Intermodal Ground Access Project.--
(A) An eligible agency may not collect or use a passenger facility
charge to finance an intermodal ground access project, unless the
project is first approved by the Secretary in accordance with this
paragraph.
``(B) The eligible agency may submit to the Secretary an
application for authority to impose a passenger facility charge for an
intermodal ground access project. The application shall contain
information and be in the form that the Secretary may require by
regulation but, at a minimum, must include copies of any comments
received by the agency during the comment period described by
subparagraph (C).
``(C) Before submitting an application under this paragraph, an
eligible agency must provide air carriers and foreign air carriers
operating at the airport, and the public, reasonable notice of and an
opportunity to comment on a proposed intermodal ground access project.
Such notice and opportunity to comment shall conform to the
requirements of paragraphs (3) and (4).
``(D) After receiving an application, the Secretary may provide air
carriers, foreign air carriers and other interested persons notice and
an opportunity to comment on the application. The Secretary shall make
a final decision on the application not later than 120 days after
receiving it.''.
(d) Conforming Changes.--(1) Correction.--In subsections (d)
through (m) of section 40117, by--
(A) striking ``fee'' or ``fees'' wherever the terms appear
and inserting ``charge'' or ``charges'', respectively; and
(B) striking ``FEE'' or ``FEES'' wherever the terms appear
and inserting ``CHARGE'' or ``CHARGES'', respectively.
(2) Limitations on Approving Applications.--Section 40117(d) is
amended--
(A) in the first sentence, by striking ``subsection (c) of
this section to finance a specific'' and inserting ``subsection
(c)(6) of this section to finance an intermodal ground
access'';
(B) in paragraph (1), by--
(i) striking ``fee'' and inserting ``charge''; and
(ii) striking ``specific'';
(C) by revising paragraph (2) to read as follows:
``(2) the project is an eligible airport-related project;
and'';
(D) in paragraph (3), by striking ``each of the specific
projects; and'' and inserting ``the project.''; and
(E) by striking paragraph (4).
(3) Limitations on Imposing Fees.--Section 40117(e)(1) is amended
to read as follows:
``An eligible agency may impose a passenger facility charge
only subject to terms the Secretary may prescribe to carry out
the objectives of this section.''.
(4) Limitations on Contracts, Leases, and Use Agreements.--Section
40117(f)(2) is amended--
(A) by striking ``long-term''; and
(B) by striking ``Secretary.'' and inserting ``Secretary,
except a project for replacement of baggage conveyor systems
and reconfiguration of terminal baggage areas that the
Secretary determines are necessary to install bulk explosive
detection devices.''.
(5) Compliance.--Section 40117(h) is amended--
(A) by inserting a new paragraph (3) as follows:
``(3) The Secretary may, on complaint of an interested
person or on the Secretary's own initiative, conduct an
investigation into an eligible agency's collection and use of
passenger facility charge revenue to determine whether a
passenger facility charge is excessive or that passenger
facility revenue is not being used as provided in this section.
The Secretary shall prescribe regulations establishing
procedures for complaints and investigations. The regulations
may provide for the issuance of a final agency decision without
resort to an oral evidentiary hearing. The Secretary shall not
accept complaints filed under this paragraph until after the
issuance of regulations establishing complaint procedures.'';
and
(B) by redesignating paragraph (3) as paragraph (4).
(6) Pilot Program for PFC at Nonhub Airports.--Section 40117(l) is
amended--
(A) in paragraph (2), by striking ``(c)(2)'' and inserting
``(c)(3)''; and
(B) in paragraph (7), by striking ``date that is 3 years
after the date of issuance of regulations to carry out this
subsection.'' and inserting ``date of issuance of regulations
to carry out subsection (c) of this section, as amended by the
Next Generation Air Transportation System Financing Reform Act
of 2007.''.
(7) Prohibition on Approving PFC Applications for Airport Revenue
Diversion.--Section 47111(e) is amended in the first sentence by
striking from ``sponsor, and withhold approval of any new application
to impose a fee under section 40117.'' through the end of the
subsection, and inserting ``sponsor. A sponsor shall not propose
collection or use of passenger facility charges for any new projects
under section 40117(c)(3)-(6) unless the Secretary determines that the
sponsor has taken corrective action to address the violation and the
violation no longer exists.''.
SEC. 302. AMENDMENTS TO AIP DEFINITIONS.
Section 47102 is amended--
(1) in subsection (3),
(A) in clause (B)(iv), by striking ``20'' and
inserting ``9''; and
(B) by adding at the end, the following:
``(M) construction of mobile refueler parking
within a fuel farm at a nonprimary airport meeting the
requirements of section 112.8 of title 40 of the Code
of Federal Regulations.
``(N) terminal development subject to the
provisions of section 47119.''.
(2) by inserting the following new paragraph (8) and
redesignating paragraphs (8) through (22) as paragraphs (9)
through (23), respectively:
``(8) a `general aviation airport' means a public airport
in a State that the Secretary determines--
``(A) does not have scheduled service; or
``(B) has scheduled service with less than 2,500
passenger boardings each year.'';
(3) by inserting the following new paragraph (24) and
redesignating paragraphs (23) through (25) as (25) through
(27), respectively:
``(24) `revenue producing aeronautical support facilities'
means new fuel farms, new hangar buildings, self-service credit
card aeronautical fueling systems, airplane wash racks, major
rehabilitation of a hangar owned by a sponsor, or other
aeronautical support facilities that the Secretary determines
will increase the revenue producing ability of the airport.'';
and
(4) by inserting at the end the following new paragraph
(28):
``(28) `terminal development' means--
``(A) development of an airport passenger terminal
building, including terminal gates, access roads
servicing exclusively airport traffic that leads
directly to or from a terminal building, and walkways
that lead directly to or from a terminal building; and
``(B) the cost of a vehicle under section 47119(a)
of this title.''.
SEC. 303. AMENDMENTS TO GRANT ASSURANCES.
Section 47107 is amended--
(1) in clause (a)(16)(D)(ii), by striking ``made;'' and
inserting ``made, except that, if there is a change in airport
design standards that the Secretary determines is beyond the
owner or operator's control that requires the relocation or
replacement of an existing airport facility, the Secretary,
upon the request of the owner or operator, may grant funds
available under section 47114 to pay the cost of relocating or
replacing such facility.''; and
(2) in clause (c)(2)(A)(iii), by striking from ``paid to
the Secretary'' through the end of the clause, and inserting
``reinvested in another project at the airport or transferred
to another airport as the Secretary prescribes. In approving
the reinvestment or transfer of such proceeds, the Secretary
shall give preference, in descending order, to the following
actions:
``(I) reinvestment in an approved
noise compatibility project;
``(II) reinvestment in an approved
project that is eligible for funding
under section 47117(e);
``(III) reinvestment in an airport
development project that is eligible
for funding under sections 47114, 47115
or 47117 and meets the requirements of
this chapter;
``(IV) transfer to another sponsor
of another public airport to be
reinvested in an approved noise
compatibility project at such airport;
and
``(V) payment to the Secretary for
deposit in the Airport and Airway Trust
Fund established under section 9502 of
the Internal Revenue Code of 1986 (26
U.S.C. 9502);''.
SEC. 304. GOVERNMENT SHARE OF PROJECT COSTS.
Section 47109 is amended--
(1) in subsection (a) by--
(A) by striking ``subsection (b) or subsection
(c)'' and inserting ``subsections (b), (c) or (e)'';
(B) by striking ``is--'' and inserting ``may not
exceed--'';
(C) by striking paragraphs (1) and (2) and adding
the following new paragraphs:
``(1) 50 percent for an airfield pavement rehabilitation
project for runways, taxiways or aircraft aprons at a large hub
or medium hub primary airport, as defined in section 47102;
``(2) 75 percent for other approved airport development
projects at a large hub or medium hub primary airport, as
defined in section 47102;
``(3) 95 percent for a project funded by a grant issued to
a nonprimary airport that is not apportioned funds under
section 47114 of this title;'';
(D) by redesignating paragraphs (3), (4), and (5)
as paragraphs (4), (5), and (6); and
(2) in subsection (f), by striking ``47118(f)'' and
inserting ``47118(e)''; and
(3) by adding at the end the following:
``(e) Special Rule for Transition From Small Hub to Medium Hub
Status.--If the status of a small hub primary airport changes to a
medium hub primary airport, the United States Government's share of
allowable project costs for the airport may not exceed 90 percent for
two fiscal years following such change in hub status.''.
SEC. 305. AMENDMENTS TO ALLOWABLE COSTS.
Section 47110 is amended--
(1) by revising subsection (d) to read as follows:
``(d) Relocation of Airport-Owned Facilities.--The Secretary may
determine that the costs of relocating or replacing an airport-owned
facility are allowable for an airport development project at an airport
only if--
``(1) the Government's share of such costs is paid with
funds apportioned to the airport sponsor under sections
47114(c)(1) or 47114(d)(2);
``(2) the Secretary determines that the relocation or
replacement is required due to a change in the Secretary's
design standards; and
``(3) the Secretary determines that the change is beyond
the control of the airport sponsor.''; and
(2) in subsection (h) by striking ``facilities, including
fuel farms and hangars,'' and inserting ``facilities, as
defined by section 47102,''.
SEC. 306. SIMPLIFICATION AND REFORM OF APPORTIONMENT FORMULAS.
Section 47114 is amended--
(1) in subsection (c)(1)--
(A) in subparagraph (A), by striking ``primary
airport'' and inserting ``small hub and nonhub primary
airport'';
(B) in clause (A)(i), by striking ``$7.80'' and
inserting ``$15.60'';
(C) in clause (A)(ii), by striking ``$5.20'' and
inserting ``$10.40'';
(D) in clause (A)(iii), by striking ``$2.60'' and
inserting ``$5.20'';
(E) in clause (A)(iv), by striking ``$.65'' and
inserting ``$1.30'';
(F) in clause (A)(v), by striking ``$.50'' and
inserting ``$1.00'';
(G) in subparagraph (B), by striking ``$650,000''
and all that follows through the end of the sentence
and inserting ``$1,000,000 nor more than $26,000,000
may be apportioned under subparagraph (A) of this
paragraph to an airport sponsor of each large hub and
medium hub primary airport for fiscal years 2008 and
2009, and to each airport sponsor for a small hub and
nonhub primary airport for each fiscal year.''
(H) by amending subparagraph (C) to read as
follows:
``(C) Transitional rule for large and medium hub
airports.--In fiscal years 2008 and 2009, the Secretary
shall apportion to each large and medium hub airport an
amount equal to 50 percent of the amount that is
calculated using the formulas set forth in subparagraph
(A).'';
(I) in subparagraph (D), by striking ``(B) or (C),
as appropriate,'' and inserting ``(B)''; and
(J) by striking subparagraph (F) and redesignating
subparagraph (G) as subparagraph (F);
(2) in subsection (c)(2)--
(A) in subparagraph (A), by striking ``(D),'' and
inserting ``(C),''; and
(B) by striking subparagraph (C) and redesignating
subparagraphs (D) and (E) as (C) and (D), respectively;
(3) in subsection (d)--
(A) in subparagraph (2), by--
(i) striking ``18.5 percent'' and inserting
``10 percent''; and
(ii) adding a new subparagraph at the end
as follows:
``(D) Minimum apportionment.--In any fiscal year in
which the total amount made available for apportionment
under this subsection is less than $300,000,000, the
Secretary shall reduce, on a prorated basis, the amount
to be apportioned under subparagraph (d)(3)(A) of this
section, and make such reduction available to be
apportioned under this subsection, so as to meet a
minimum apportionment of $300,000,000.''; and
(B) by revising paragraph (3) to read as follows:
``(3) Nonprimary airports.--Except as provided in
subsection (2)(D), the Secretary shall each fiscal year
apportion--
``(A) to each airport, excluding primary airports
but including reliever and nonprimary commercial
service airports-
``(i) $400,000 to each airport that is
either a nonprimary commercial service airport
or a reliever or that is a nonprimary airport
having 100 or more operational registered based
aircraft;
``(ii) $200,000 to each airport that is a
nonprimary airport (other than a nonprimary
commercial service or reliever airport), having
50 and 99 operational registered based
aircraft, or three or more operational
registered based jet aircraft; and
``(iii) $100,000 to each airport that is a
nonprimary airport (other than a nonprimary
commercial service airport or a reliever
airport), and has 10 to 49 operational,
registered based aircraft.
``(B) For purposes of subparagraph (A), the terms
`operational registered based aircraft' or `operational
registered based jet aircraft' shall be as defined in
the Federal Aviation Administration's National Flight
Data Center Airport Data Base or in a comparable,
updated agency database.'';
(4) subsection (e) is amended--
(A) in subparagraph (1)(B), by inserting ``twice''
before ``the minimum''; and
(B) by striking paragraph (4);
(5) in subsection (f)(1)--
(A) by striking ``in a fiscal year to the sponsor
of an airport having at least .25 percent of the total
number of boardings each year in the United States''
and inserting ``in fiscal years 2008 and 2009 to a
sponsor of a large hub or medium hub airport'';
(B) in subparagraph (B), by striking ``$3.00,'' and
inserting ``$3.00, but not more than $4.50,'';
(C) by adding a new subparagraph at the end as
follows:
``(C) in the case of a passenger facility charge of more
than $4.50, 100 percent of the projected revenues from the
charge in the fiscal year but not by more than 100 percent of
the amount that otherwise would be apportioned under this
section.''; and
(D) by striking ``fee'' each place it appears and
inserting ``charge'';
(6) in subsection (f)(2), by striking ``fee'' each time it
appears and inserting ``charge''; and
(7) by adding at the end the following:
``(g) Environmental Set-Aside.--(1) The Secretary may apportion at
least 8 percent of the amount subject to apportionment for each fiscal
year for grants for--
``(A) airport noise compatibility planning under section
47505(a)(2);
``(B) carrying out noise compatibility programs under
section 47504(c);
``(C) noise mitigation projects approved in an
environmental record of decision for an airport development
project under this title;
``(D) for compatible land use planning projects carried out
by State and local governments under section 47141;
``(E) for airport development described in section
47102(3)(F), 47102(3)(K) or 47102(3)(L) to comply with the
Clean Air Act (42 U.S.C. 7401 et seq.);
``(F) for water quality mitigation projects to comply with
the Clean Water Act (33 U.S.C. 1251 et seq.) approved in an
environmental record of decision for an airport development
project under this title; and
``(G) for carrying out an environmental mitigation
demonstration project under section 47143 of this title.
``(2) The Secretary may count the amount of grants made for such
planning and programs with funds apportioned under section 47114 in
that fiscal year in determining whether or not such 8 percent
requirement is being met in that fiscal year.''.
SEC. 307. MINIMUM AMOUNT FOR THE DISCRETIONARY FUND.
Section 47115(g)(1) is amended by striking from ``sum of--''
through the end of clause (B) and inserting ``sum of $520,000,000.''.
SEC. 308. FUNDING OF SPACE TRANSPORTATION INFRASTRUCTURE GRANTS
PROGRAM.
Section 47115 is amended by adding at the end the following new
subsection:
``(k) Funding of Space Transportation Infrastructure Matching
Grants.--Notwithstanding any other provision of this chapter, from
amounts made available under this section, the Secretary may issue a
grant for a project under section 70301 of this title, provided that,
in issuing such a grant, the Secretary shall follow the provisions of
chapter 703 of this title. Not more than $10,000,000 per fiscal year
shall be available for grants under this subsection.''.
SEC. 309. REPEAL OF SMALL AIRPORT FUND.
Section 47116 is repealed.
SEC. 310. CREATION OF NEW SMALL AIRPORT SET-ASIDE, AND REPEAL OF THE
MILITARY AND RELIEVER AIRPORT SET-ASIDES.
Section 47117(e) is amended to read as follows:
``(e) Small Airport Set-Aside.--Each fiscal year, the Secretary
shall provide at least 20 percent of the amount available to the
discretionary fund under section 47115 of this title to sponsors of
small hub airports, nonhub airports, nonprimary commercial service
airports, reliever airports or general aviation airports, for any
purpose for which amounts are made available under section 48103. An
airport in a State participating in the State block grant program under
section 47128 may receive a grant under this section to the same extent
the airport may receive a grant if the State were not participating in
such program.''.
SEC. 311. MILITARY AIRPORT PROGRAM.
Section 47118 is amended--
(1) in subsection (a), by striking ``section
47117(e)(1)(B)'' and inserting ``sections 47114(c)(1), (c)(2)
and (d), 47115, or 47117(e)'';
(2) by striking subsection (c) and redesignating
subsections (d) through (g) as (c) through (f) respectively?];
(3) in subsection (c), as redesignated, by striking
``section 47117(d)(1)(B) of this title'' and inserting
``sections 47114, 47115 or 47117 of this title for projects at
airports designated under this section'';
(4) in subsection (d), as redesignated, by striking
``section 47115, $10,000,000 for each of fiscal years 2004 and
2005, and $7,000,000 for each fiscal year thereafter,'' and
inserting ``sections 47114, 47115 or 47117, $7,000,000 for each
fiscal year,'';
(5) in subsection (e), as redesignated--
(A) by striking ``(1) Construction.--From'' and
inserting ``From'';
(B) by striking ``section 47115, $10,000,000 for
each of fiscal years 2004 and 2005, and $7,000,000 for
each fiscal year thereafter,'' and inserting ``sections
47114, 47115 or 47117, $7,000,000 for each fiscal
year,''; and
(C) by striking paragraph (2); and
(6) in subparagraph (f), as redesignated, by striking
``one'' and inserting ``up to three''.
SEC. 312. SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR.
Section 47133(b) is amended--
(1) by striking ``apply if'' and inserting: ``apply--(1)
if'';
(2) by striking ``operator.'' and inserting ``operator;
and''; and
(3) by adding at the end the following:
``(2) in the case of a privately owned airport, to the
proceeds from the sale of the airport to a public sponsor if--
``(A) the sale is approved by the Secretary;
``(B) funding is provided under this title for the
public sponsor's acquisition; and
``(C) an amount equal to the remaining unamortized
portion of the original grant, amortized over a 20-year
period, is repaid to the Secretary by the private owner
for deposit in the Trust Fund for airport acquisitions.
``(3) This subsection shall apply to grants issued on or
after October 1, 1996.''.
SEC. 313. SUNSET OF AIRPORT SECURITY PROGRAM.
Section 47137 is amended by adding at the end the following:
``(h) Sunset.--This section shall not be in effect after September
30, 2008.''.
SEC. 314. SUNSET OF PILOT PROGRAM FOR PURCHASE OF AIRPORT DEVELOPMENT
RIGHTS.
Section 47138 is amended by adding at the end the following:
``(f) Sunset.--This section shall not be in effect after September
30, 2007.''.
SEC. 315. EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND USE PLANNING
AND PROJECTS BY STATE AND LOCAL GOVERNMENTS.
Section 47141(f) is amended by striking ``September 30, 2007.'' and
inserting ``September 30, 2010.''.
SEC. 316. MIDWAY ISLAND AIRPORT.
Section 186(d) of the Vision 100--Century of Aviation
Reauthorization Act (Public Law No. 108-176, 117 Stat. 2490, 2518) is
amended by striking ``October 1, 2007'' and inserting ``October 1,
2010''.
SEC. 317. PILOT PROGRAM FOR AIRPORT TAKEOVER OF AIR NAVIGATION
FACILITIES.
(a) In General.--Chapter 445 is amended by adding at the end the
following new section:
``Sec. 44518. Pilot program for airport takeover of terminal area air
navigation equipment
``(a) In General.--Subject to the requirements of this section, the
Administrator of the Federal Aviation Administrator may carry out a
pilot program under which the Administrator may transfer ownership,
operating and maintenance responsibilities for airport terminal area
air navigation equipment to sponsors of not more than 10 medium or
large hub airports.
``(b) Terms and Conditions of Transfer for Airport Sponsors.--As a
condition of participating in this pilot program the sponsor shall
agree that the sponsor will--
``(1) operate and maintain all of the air navigation
equipment that is subject to this section at the airport in
accordance with standards established by the Administrator;
``(2) permit the Administrator or a person designated by
the Administrator to conduct inspections of the air navigation
equipment under a schedule established by the Administrator;
and
``(3) acquire and maintain new air navigation equipment as
needed to replace facilities that have to be replaced at the
end of their useful life or to meet new standards established
by the Administrator.
``(c) Terms and Conditions of Transfer for the Administrator.--When
the Administrator approves a sponsor's participation in this pilot
program, the Administrator shall--
``(1) transfer, at no cost to the sponsor, the title and
ownership of the air navigation equipment facilities approved
for transfer under this program; and
``(2) transfer, at no cost to the sponsor, the government's
property interest in the land on which the air navigation
facilities transferred under subsection (1) are located.
``(d) Treatment of Airport Costs Under Pilot Program.--Upon
transfer by the Administrator, any costs incurred by the airport for
ownership and maintenance of the equipment transferred under this
section shall be considered a cost of providing airfield facilities and
services under standards and guidelines issued by the Secretary under
section 47129(b)(2) and may be recovered in rates and charges assessed
for use of the airfield.
``(e) Special Passenger Facility Charge Authority.--Notwithstanding
the maximum amount for a passenger facility charge provided under
section 40117(b)(1), a participating sponsor in the pilot program under
this section is authorized to impose a passenger facility charge of $7
provided that the sponsor meets the otherwise applicable requirements
of section 40117.
``(f) Definitions.--In this section--
``(1) `large hub airport' and `medium hub airport' shall
have the meaning set forth in section 40102;
``(2) `sponsor' shall have the same meaning as in section
47102;
``(3) `terminal area air navigation equipment' means an air
navigation facility under section 40102, other than buildings
used for air traffic control functions, that exists to provide
approach and landing guidance to aircraft.
``(g) Guidelines.--The Administrator shall issue advisory
guidelines on the implementation of the program. The guidelines shall
not be subject to administrative rulemaking requirements under
subchapter II of chapter 5 of title 5.''.
(b) Conforming Amendment.--The analysis of chapter 445 is amended
by inserting at the end:
``44518. Pilot program for airport takeover of terminal area air
navigation equipment.''.
SEC. 318. ADS-B SUPPORT PILOT PROGRAM.
(a) In General.--Chapter 445 is amended by adding at the end the
following new section:
``Sec. 44519. ADS-B support pilot program
``(a) In General.--The Secretary may carry out a pilot program to
support non-Federal acquisition of National Airspace System (NAS)
compliant Automatic Dependant Surveillance--Broadcast (ADS-B) ground
stations if--
``(1) the Secretary determines that acquisition of the
ground stations benefits the improvement of safety or capacity
in the National Airspace System;
``(2) the ground stations provide the required transmit and
receive data formats consistent with the National Airspace
System architecture at the appropriate service delivery point;
and
``(3) the ground stations acquired under this program are
supplemental to ground stations established under programs
administered by the Administrator of the Federal Aviation
Administration.
``(b) Project Grants.--(1) For purposes of carrying out this pilot
program and notwithstanding the requirements of section 47114(d), the
Secretary may make a project grant out of funds apportioned under
section 47114(d)(2) to not more than ten eligible sponsors to acquire
and install ADS-B ground stations in order to serve any public-use
airport.
``(2) The Secretary shall establish procurement procedures
applicable to grants issued under this section. The procedures shall
permit the sponsor to carry out the project using Federal Aviation
Administration contracts. The procedures established by the Secretary
may provide for the direct reimbursement (including administrative
costs) of the Administrator by the sponsor using grant funds under this
section, for the ordering of such equipment and its installation, or
for the direct ordering of such equipment and its installation by the
sponsor, using such grant funds, from the suppliers with which the
Administrator has contracted.
``(c) Matching Requirement.--The amount of a grant to an eligible
sponsor under subsection (b) may not exceed 90 percent of the costs of
the acquisition and installation of the ground support equipment.
``(d) Definitions.--In this section--
``(1) `ADS-B ground station' means electronic equipment
that provides for ADS-B reception and broadcast services.
``(2) `eligible sponsor' means a state, a metropolitan
planning organization in the area where the project is located,
or any consortium of two or more state or local governments
meeting the definition of a sponsor under section 47102 of this
title.''.
(b) Conforming Amendment.--The analysis of chapter 445 is amended
by inserting at the end:
``44519. ADS-B support pilot program.''.
SEC. 319. AIP ELIGIBILITY FOR METROPOLITAN WASHINGTON AIRPORTS
AUTHORITY.
Section 49108 is amended by striking ``October 1, 2008,'' and
inserting ``October 1, 2010''.
SEC. 320. MISCELLANEOUS AMENDMENTS.
(a) Technical Changes to National Plan of Integrated Airport
Systems.--Section 47103 is amended--
(1) in subsection (a), by striking ``each airport to--''
and inserting ``the airport system to--'';
(2) in subsection (a)(1), by striking ``system in the
particular area;'' and inserting ``system, including connection
to the surface transportation network; and'';
(3) in subsection (a)(2), by striking ``aeronautics; and''
and inserting ``aeronautics.'';
(4) by striking subsection (a)(3);
(5) by striking subsection (b)(2) and redesignating (b)(3)
as (b)(2);
(6) in subsection (b)(2), as redesignated, by striking
``operations, Short Takeoff and Landing/Very Short Takeoff and
Landing aircraft operations,'' and inserting ``operations'';
and
(7) in subsection (d), by striking ``status of the''.
(b) Conforming Change to Project Grant Agreements.--Section
47108(e)(3) is amended by striking ``and the small airport fund''.
(c) Update Veterans Preference Definition.--Section 47112(c) is
amended--
(1) in paragraph (1) by--
(A) in subparagraph (B), by striking ``separated
from'' and inserting ``discharged or released from
active duty in''; and
(B) inserting at the end the following:
``(C) `Afghanistan-Iraq war veteran' means an
individual who served on active duty, as defined by
section 101(21) of title 38, at any time in the armed
forces for a period of more than 180 consecutive days,
any part of which occurred during the period beginning
on September 11, 2001, and ending on the date
prescribed by Presidential proclamation or by law as
the last date of Operation Iraqi Freedom.''; and
(2) in paragraph (2), by striking ``veterans and'' and
inserting ``veterans, Afghanistan-Iraq war veterans, and''.
(d) Consolidation of Terminal Development Provisions.--Section
47119 is amended--
(1) redesignating subsections (a), (b), (c) and (d) as
subsections (b), (c), (d) and (e) respectively, and by
inserting a new subsection (a) as follows:
``(a) In General.--(1) The Secretary may approve a project for
terminal development (including multimodal terminal development) in a
nonrevenue-producing public-use area of a commercial service airport--
``(A) if the sponsor certifies that the airport, on the
date the grant application is submitted to the Secretary, has--
``(i) all the safety equipment required for
certification of the airport under section 44706 of
this title;
``(ii) all the security equipment required by
regulation; and
``(iii) provided for access, to the area of the
airport for passengers for boarding or exiting
aircraft, to those passengers boarding or exiting
aircraft, except air carrier aircraft;
``(B) if the cost is directly related to moving passengers
and baggage in air commerce within the airport, including
vehicles for moving passengers between terminal facilities and
between terminal facilities and aircraft; and
``(C) under terms necessary to protect the interests of the
Government.
``(2) In making a decision under paragraph (1) of this subsection,
the Secretary may approve as allowable costs the expenses of terminal
development in a revenue-producing area and construction,
reconstruction, repair, and improvement in a nonrevenue-producing
parking lot if--
``(A) except as provided in section 47108(e)(3), the
airport does not have more than .05 percent of the total annual
passenger boardings in the United States; and
``(B) the sponsor certifies that any needed airport
development project affecting safety, security, or capacity
will not be deferred because of the Secretary's approval.'';
(2) in subsection (b), as redesignated--
(A) in paragraph (4)(A), by striking ``section
47110(d)'' and inserting ``subsection (a)''; and
(B) in paragraph (5), by striking ``subsection
(b)(1) and (2)'' and inserting ``subsection (c)(1) and
(2)''; and
(3) by inserting at the end the following new subsections:
``(f) Limitation on Discretionary Funds.--The Secretary may
distribute not more than $20,000,000 from the discretionary fund
established under section 47115 of this title for terminal development
projects at a nonhub airport or a small hub primary airport that is
eligible to receive discretionary funds under section 47108(e)(3) of
this title.''.
(e) Annual Report.--Section 47131(a) is amended--
(1) by striking ``April 1'' and inserting ``June 1''; and
(2) by revising paragraphs (1), (2), (3) and (4) to read as
follows:
``(1) a summary of airport development and planning
completed;
``(2) a summary of individual grants issued;
``(3) an accounting of discretionary and apportioned funds
allocated;
``(4) the allocation of appropriations; and''.
(f) Correction to Emission Credits Provision.--Section 47139 is
amended--
(1) in subsection (a), by striking ``47102(3)(F),''; and
(2) in subsection (b)--
(A) by striking ``47102(3)(F),'';
(B) by striking ``47102(3)(L), or 47140'' and
inserting ``or 47102(3)(L),'';
(C) by striking ``47103(3)(F),'';
(D) by striking ``47102(3)(L), or 47140,'' and
inserting ``or ``47102(3)(L),''.
(g) Repeal of Airport Ground Support Equipment Emissions Retrofit
Pilot Program.--Section 47140 is repealed.
(h) Correction to Surplus Property Authority.--Section 47151(e) is
amended by striking ``(other than real property that is subject to
section 2687 of title 10, section 201 of the Defense Authorization
Amendments and Base Closure and Realignment Act (10 U.S.C. 2687 note),
or section 2905 of the Defense Base Closure and Realignment Act of 1990
(10 U.S.C. 2687 note)''.
(i) Airport Capacity Benchmark Reports; Definition of Joint Use
Airport.--Section 47175 is amended--
(1) in paragraph (2), by striking ``Airport Capacity
Benchmark Report 2001.'' and inserting ``2001 and 2004 Airport
Capacity Benchmark Reports or of the most recent Benchmark
report.''; and
(2) by adding at the end:
``(7) Joint use airport.--The term `joint use airport'
means an airport owned by the United States Department of
Defense, at which both military and civilian aircraft make
shared use of the airfield.''.
(j) Conforming Amendment to Civil Penalty Assessment Authority.--
Section 46301(d)(2) is amended by striking ``46318,'' and inserting
``46318, 46319''.
(k) Funding for Administrative Expenses for Airport Programs.--(1)
Section 48105 is amended to read as follows:
``Sec. 48105. Airport programs administrative expenses
``Of the amount newly made available, the following shall be
available for administrative expenses relating to the Airport
Improvement Program, passenger facility fee approval and oversight,
national airport system planning, airport standards development and
enforcement, airport certification, airport-related environmental
activities (including legal services), and other airport-related
activities (including airport technology research), to remain available
until expended--
``(1) for fiscal year 2008, $80,676,000;
``(2) for fiscal year 2009, $85,000,000; and
``(3) for fiscal year 2010, $89,000,000.''.
(2) Conforming amendments.--The analysis of chapter 481 is
amended by revising the title for section 48105 to read as
follows:
``48105. Airport programs administrative expenses.''.
TITLE IV--MANAGEMENT AND ORGANIZATION REFORMS
SEC. 401. AIR TRANSPORTATION SYSTEM ADVISORY BOARD.
Section 106 is amended by striking subsection (p) and inserting in
lieu thereof the following:
``(p) Air Transportation System Advisory Board.--
``(1) Establishment.--The Secretary shall establish an
Advisory Board which shall be known as the Air Transportation
System Advisory Board (in this subsection referred to as the
`Board').
``(2) Membership.--The Board shall be comprised of 13
members, who shall consist of--
``(A) the Administrator of the Federal Aviation
Administration and a representative from the Department
of Defense;
``(B) three members who shall have a fiduciary
responsibility to represent the public interest; and
``(C) eight members representing aviation
interests:
``(i) one representative of the airport
community;
``(ii) one representative each of major air
carriers (Carrier Group I), national air
carriers (Carrier Group II), and the regional
air carriers (Carrier Group III), as previously
defined by the Secretary of Transportation
under section 4, part 241 of title 49 of the
Code of Federal Regulations;
``(iii) one representative of the cargo
airlines;
``(iv) one representative of the general
aviation community;
``(v) one representative of the business
aviation community; and
``(vi) one representative of the aviation
manufacturing community.
``(3) Appointment and qualifications.--
``(A) Members of the Board appointed under
paragraphs (2)(B) and (2)(C) shall be appointed by the
Secretary and shall not be considered to be employees
of the Federal Government.
``(B) Members of the Board appointed under
paragraph (2)(B) shall be citizens of the United
States, and it is recommended that they shall be
appointed without regard to political affiliation and
solely on the basis of their professional experience
and expertise in one or more of the following areas
and, in the aggregate, should collectively bring to
bear expertise in the following areas:
``(i) management of large service
organizations;
``(ii) customer service;
``(iii) management of large procurements;
``(iv) information and communications
technology;
``(v) organizational development; and
``(vi) labor relations.
``(4) Functions.--
``(A) In general.--The Board shall--
``(i) review and provide advice on the
Administration's safety programs, budget, and
cost accounting system;
``(ii) review the Administration's
strategic plan and make recommendations on the
non-safety program portions of the plan, and
provide advice on the safety programs of the
plan;
``(iii) review the operational efficiency
of the air traffic control system and make
recommendations on the operational and
performance metrics for that system;
``(iv) review and make recommendations on
the Administration's plan for modernizing that
system and capital expenditures for a project
of $100,000,000 or more related to the system;
``(v) make recommendations of the type and
level of fees to be established by the
Administration under sections 45305 and 45306
and for any adjustments to those fees in
accordance with the procedures established
under those sections; and
``(vi) provide advice on the
Administrator's selection of a Chief Operating
Officer for the Air Traffic Organization and on
the appointment and compensation of its
managers.
``(B) Meetings.--The Board shall meet on a regular
and periodic basis or at the call of the Chairman or of
the Administrator.
``(C) Access to documents and staff.--The
Administration may give the Board appropriate access to
relevant documents and personnel of the Administration,
and the Administrator shall make available, consistent
with the authority to withhold commercial and other
proprietary information under section 552 of title 5
(commonly known as the `Freedom of Information Act'),
cost data associated with the acquisition and operation
of air traffic control systems. Any member of the Board
who receives commercial or other proprietary data from
the Administrator shall be subject to the provisions of
section 1905 of title 18, pertaining to unauthorized
disclosure of such information.
``(5) Federal advisory committee act not to apply.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply
to the Board or such rulemaking committees as the Administrator
shall designate.
``(6) Administrative matters.--
``(A) Terms of members.--Members of the Board
appointed under paragraphs (2)(B) and (2)(C) shall be
appointed for a term of 3 years. Of the members first
appointed by the Secretary--
``(i) 3 shall be appointed for terms of 1
year;
``(ii) 4 shall be appointed for terms of 2
years;
``(iii) 4 shall be appointed for terms of 3
years.
``(B) Reappointment.--No individual may be
appointed to the Board for more than six years total.
``(C) Vacancy.--Any vacancy on the Board shall be
filled in the same manner as the original position. Any
member appointed to fill a vacancy occurring before the
expiration of the term for which the member's
predecessor was appointed shall be appointed for the
remainder of that term.
``(D) Continuation in office.--A member of the
Board whose term expires shall continue to serve until
the date on which the member's successor takes office.
``(E) Removal.--Any member of the Board appointed
under paragraph (2)(B) or (2)(C) may be removed by the
Secretary.
``(F) Claims against members of the board.--
``(i) In general.--A member appointed to
the Board shall have no personal liability
under State or Federal law with respect to any
claim arising out of or resulting from an act
or omission by such member within the scope of
service as a member of the Board.
``(ii) Effect on other law.--This
subparagraph shall not be construed--
(I) to affect any other immunity or
protection that may be available to a
member of the Board under applicable
law with respect to such transactions;
(II) to affect any other right or
remedy against the United States under
applicable law; or
(III) to limit or alter in any way
the immunities that are available under
applicable law for Federal officers and
employees.
``(G) Ethical considerations.--Each member of the
Board appointed under paragraph (2)(B) must self-
certify that he or she--
``(i) does not have a pecuniary interest
in, or own stock in or bonds of, an aviation or
aeronautical enterprise, except an interest in
a diversified mutual fund or an interest that
is exempt from the application of section 208
of title 18;
``(ii) does not engage in another business
related to aviation or aeronautics; or
``(iii) is not a member of any organization
that engages, as a substantial part of its
activities, in activities to influence
aviation-related legislation.
``(H) Chairman; vice chairman.--The Board shall
elect a chair and a vice chair from among its members,
each of whom shall serve for a term of 2 years. The
vice chair shall perform the duties of the chairman in
the absence of the chairman.
``(I) Compensation.--No member shall receive any
compensation or other benefits from the Federal
Government for serving on the Board, except for
compensation benefits for injuries under subchapter I
of chapter 81 of title 5, United States Code (Federal
Employees' Compensation Act) and except as provided
under subparagraph (J).
``(J) Expenses.--Each member of the Board shall be
paid actual travel expenses and per diem in lieu of
subsistence expenses when away from his or her usual
place of residence, in accordance with section 5703 of
title 5.
``(K) Detail of personnel from the
administration.--The Administrator shall make available
to the Board such staff, information, and
administrative services and assistance as may
reasonably be required to enable the Board to carry out
its responsibilities under this subsection.
``(L) Quorum and voting.--A simple majority of
members of the Board shall constitute a quorum. A
majority vote of members present and voting shall be
required for the Committee to take action.
``(7) Role of the administrator and the secretary.--All
actions and functions of the Board are subject to the approval
or disapproval of the Administrator and the Secretary.
``(8) Air traffic control system defined.--In this section,
the term `air traffic control system' has the meaning such term
has under section 40102(a).''.
SEC. 402. FACILITATION OF NEXT GENERATION AIR TRAFFIC SERVICES.
Section 106(l) is amended by adding at the end the following:
``(7) Services by private sector.--In determining what
actions to take, by rule or through an agreement or transaction
under paragraph (6) or under section 44502, to permit non-
government providers of communications, navigation,
surveillance or other services to provide such services in the
National Airspace System, or to require the usage of such
services, the Administrator shall consider whether such actions
would:
(A) promote the safety of life and property;
(B) improve the efficiency of the National Airspace
System and reduce the regulatory burden upon National
Airspace System users, based upon sound engineering
principles, user operational requirements, and
marketplace demands;
(C) encourage competition and provide services to
the largest feasible number of users; and
(D) take into account the unique role served by
general aviation.''.
SEC. 403. CLARIFICATION OF AUTHORITY TO ENTER INTO REIMBURSABLE
AGREEEMENTS.
Section 106(m) is amended in the last sentence by inserting ``with
or'' before ``without''.
SEC. 404. DEFINITION OF AIR NAVIGATION FACILITY.
Section 40102(4) is amended--
(1) by revising paragraph (B) to read ``runway lighting and
airport surface visual and other navigation aids;'';
(2) in paragraph(C), by striking ``weather information,
signaling, radio-directional finding, or radio or other
electromagnetic communication; and'' and inserting
``aeronautical and meteorological information to air traffic
control facilities or aircraft, supplying communication,
navigation or surveillance equipment for air-to-ground or air-
to-air applications;'';
(3) in paragraph (D)--
(A) by striking ``another structure'' and inserting
``any structure or equipment''; and
(B) by striking ``aircraft.'' and inserting
``aircraft; and''; and
(4) by adding at the end the following:
``(E) buildings, equipment and systems dedicated to
the National Airspace System.''.
SEC. 405. IMPROVED MANAGEMENT OF PROPERTY INVENTORY.
Section 40110(a)(2) is amended by striking ``compensation; and''
and inserting ``compensation, and the amount received may be credited
to the appropriation current when the amount is received; and''.
SEC. 406. CLARIFICATION TO ACQUISITION REFORM AUTHORITY.
Section 40110(c) is amended by--
(1) by striking paragraph (4); and
(2) by redesignating paragraph (5) as paragraph (4).
SEC. 407. ASSISTANCE TO FOREIGN AVIATION AUTHORITIES.
Section 40113(e) is amended--
(1) in paragraph (1), by--
(A) inserting ``(public or private)'' after the
word ``authorities''; and
(B) striking the period at the end of the first
sentence and inserting: ``or efficiency. The
Administrator is authorized to participate in, and
submit offers in response to, competitions to provide
these services, and to contract with foreign aviation
authorities to provide these services consistent with
the provisions under section 106(l)(6) of this title.
The Administrator is also authorized, notwithstanding
any other provision of law or policy, to accept
payments in arrears.''; and
(2) in paragraph (3) by striking from ``appropriation''
through the end of the sentence and inserting ``appropriation
current when the expenditures are or were paid, or the
appropriation current when the amount is received''.
SEC. 408. PRESIDENTIAL RANK AWARD PROGRAM.
Section 40122(g)(2) is amended--
(1) in paragraph (H) by striking ``Board.'' and inserting
``Board;''; and
(2) by inserting at the end the following new subparagraph:
``(G) section 4507(b), (c), and (d), relating to
Meritorious Executive or Distinguished Executive rank
awards, and section 4507a(b) and (c), relating to
Meritorious Senior Professional or Distinguished Senior
Professional rank- awards: Provided, That for purposes
of applying such provisions to the personnel management
system, ``agency'' means the Department of
Transportation, ``senior executive'' means an Federal
Aviation Administration executive, ``career appointee''
means an Federal Aviation Administration career
executive, and ``senior career employee'' means an
Federal Aviation Administration career senior
professional: Provided further, That receipt by a
career appointee of the rank of Meritorious Executive
or Meritorious Senior Professional entitles such
individual to a lump-sum payment of an amount equal to
20 percent of annual basic pay, which shall be in
addition to the basic pay paid under the Federal
Aviation Administration Executive Compensation Plan:
Provided further, That receipt by a career appointee of
the rank of Distinguished Executive or Distinguished
Senior Professional entitles the individual to a lump-
sum payment of an amount equal to 35 percent of annual
basic pay, which shall be in addition to the basic pay
paid under the Federal Aviation Administration
Executive Compensation plan.''.
SEC. 409. REALIGNMENT AND CONSOLIDATION OF AVIATION FACILITIES AND
SERVICES.
(a) Chapter 445 is amended by adding at the end the following new
section:
``Sec. 44518. Realignment and consolidation of aviation facilities and
services
``(a) Purpose.--The purpose of this section is to provide a fair
process that will result in the realignment or consolidation of
services and facilities of the Federal Aviation Administration to help
reduce capital, operating, maintenance, and administrative costs with
no adverse effect on safety.
``(b) Definitions.--(1) The term `congressional committees of
interest' means the Committee on Commerce, Science and Transportation
of the Senate, the Committee on Transportation and Infrastructure of
the House of Representatives and the Committees on Appropriations of
the Senate and House of Representatives.
``(2) The term `Commission' means the Commission established by
subsection (c) of this section.
``(3) The term `realignment' includes any action which relocates
functions and personnel positions but does not include a reduction in
personnel resulting from workload adjustments.
``(c) Establishment of Commission.--(1) The Secretary may establish
an independent commission to be known as the `Realignment and
Consolidation of Aviation Facilities and Services Commission'.
``(2) The Commission shall carry out the duties specified for it in
this part.
``(3) The Commission shall be composed of five members appointed by
the Secretary. Such members shall not be considered employees of the
Federal Government.
``(4) Members of the Commission shall be appointed for a term of 3
years.
``(5) The Commission shall elect a chair from among its members.
``(6) A vacancy in the Commission shall be filled in the same
manner as the original appointment but the individual appointed to fill
the vacancy shall serve only for the unexpired portion of the term for
which the individual's predecessor was appointed.
``(7) No member shall receive any compensation or other benefits
from the Federal Government for serving on the Commission, except for
compensation benefits for injuries under subchapter I of chapter 81 of
title 5, United States Code (Federal Employees' Compensation Act, and
except that each member of the Commission shall be paid actual travel
expenses and per diem in lieu of subsistence expenses when away from
his or her usual place of residence in accordance with section 5703 of
title 5, United States Code.
``(8) The Administrator of the Federal Aviation Administration
shall make available to the Commission such staff, information, and
administrative services and assistance as may reasonably be required to
enable the Commission to carry out its responsibilities under this
paragraph. The Commission may employ experts or consultants on a
temporary or intermittent basis with the approval of the Secretary.
``(9) The Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the Commission.
``(d) FAA Recommendations for Facilities Realignment and
Consolidation.--Within six months after the establishment of the
Commission by the Secretary, the Administrator, after providing an
opportunity for public comment, shall publish the final criteria to be
used in making the Administrator's recommendations for the realignment
and consolidation of services and facilities under this section. On the
basis of such final criteria, the Administrator shall publish in the
Federal Register and transmit to the Commission a list of the services
and facilities that the Administrator recommends for realignment and
consolidation including a justification for each recommendation.
``(e) Review and Recommendations by the Commission.--(1) After
receiving the recommendations from the Administrator pursuant to
subsection (d), the Commission shall opportunity for public comment on
such recommendations.
``(2) Based on its review and analysis of the Administrator's
recommendations and any public comment it may receive, the Commission
shall make its independent recommendations to the President for
realignment and consolidation of aviation services or facilities.
``(3) The Commission shall explain and justify in its report
submitted to the President any recommendation made by the Commission
that is different from the recommendations made by the Administrator
pursuant to subsection (d). The Commission shall transmit a copy of
such report to the congressional committees of interest on the same
date on which it transmits its recommendations to the President under
paragraph (2).
``(f) Review by the President.--(1) The President shall transmit to
the Commission and to the Congress a report containing the President's
approval or disapproval of the Commission's recommendations.
``(2) If the President approves all the recommendations of the
Commission, the President shall transmit a copy of such recommendations
to the Congress, together with a certification of such approval.
``(3) If the President disapproves the recommendations of the
Commission, in whole or in part, the President shall transmit to the
Commission and the Congress the reasons for that disapproval. The
Commission shall consider the President's report and may then transmit
to the President a revised list of recommendations for the realignment
and consolidation of services and facilities.
``(4) If the President approves all of the revised recommendations
of the Commission transmitted to the President under paragraph (3), the
President shall transmit a copy of such revised recommendations to the
Congress, together with a certification of such approval.
``(5) If the President does not transmit to the Congress an
approval and certification, the process by which agency services and
facilities may be selected for realignment or consolidation under this
section shall be terminated.
``(g) Realignment and Consolidation of Services Facilities.--
Subject to paragraph (h), the Administrator shall--
``(1) realign or consolidate all FAA services and
facilities recommended for realignment or consolidation by the
Commission in the report transmitted to the Congress by the
President pursuant to subsection (f)(2) or (4);
``(2) initiate all such realignments and consolidations no
later than two years after the date on which the President
transmits a report to the Congress containing the
recommendations for such realignments or consolidations; and
``(3) complete all such realignments and consolidations no
later than the end of the six-year period beginning on the date
on which the President transmits the report containing the
recommendations for such realignments or consolidations.
``(h) Congressional Disapproval.--(1) The Administrator may not
carry out any closure or realignment recommended by the Commission in a
report transmitted from the President pursuant to subsection (f)(2) or
(4) if a joint resolution is enacted, disapproving such recommendations
of the Commission before the earlier of--
``(A) the end of the 60 day period beginning on the date on
which the President transmits such report; or
``(B) the adjournment of Congress sine die for the session
during which such report is transmitted.
``(2) For purposes of paragraph (1)(A), the days on which either
House of Congress is not in session because of an adjournment of more
than three days to a day certain shall be excluded in the computation
of the 60 day period.
``(i) Authorization.--(1) There is authorized to be appropriated to
the Administrator such sums as may be necessary for the Commission to
carry out its duties and for the Administrator to implement the
realignment and consolidation of services and facilities as described
in subsection (g).
``(2) Such sums shall remain available until expended.
``(j) Effect on Other Authorities.--Nothing in this section shall
affect the authorities provided in section 44503 or the existing
authorities or responsibilities of the Administrator under this title
to manage the operations of the Federal Aviation Administration,
including realigning or consolidating facilities or services.''.
(b) Conforming Amendment.--The analysis of chapter 455 is amended
by adding at the end the following:
``44518. Realignment and consolidation of aviation facilities and
services.''.
SEC. 410. OPERATIONAL AND APPROACH PROCEDURES BY THIRD PARTIES THROUGH
DELEGATION.
Section 44701 is amended by adding at the end the following:
``(g) Delegation.--Subject to any regulations, supervision, and
review that the Administrator may prescribe, the Administrator may
delegate to a qualified private person, or to an employee under the
supervision of that person, the development, testing and maintenance of
flight procedures.''.
SEC. 411. JUDICIAL REVIEW OF DENIAL OF AIRMAN CERTIFICATES.
(a) Judicial Review of NTSB Decisions.--Section 44703(d) is amended
by adding at the end the following:
``(3) Judicial review.--A person substantially affected by
an order of the Board under subsection (d) of this section, or
the Administrator when the Administrator decides that an order
of the Board will have a significant adverse impact on carrying
out this part, may obtain judicial review of the order under
section 46110 of this title. The Administrator shall be made a
party to the judicial review proceedings. The findings of fact
of the Board in any such case are conclusive if supported by
substantial evidence.''
(b) Conforming Amendment.--Section 1153(c) is amended by striking
``section 44709 or'' and inserting ``section 44703(d), 44709 or''.
SEC. 412. RELEASE OF DATA RELATING TO ABANDONED TYPE CERTIFICATES AND
SUPPLEMENTAL TYPE CERTIFICATES.
Section 44704(a) is amended by adding at the end the following:
``(5) Release of data.--(A) Notwithstanding any other
provision of law, the Administrator may designate, without the
consent of the owner of record, engineering data in the
agency's possession related to a type certificate or a
supplemental type certificate for an aircraft, engine,
propeller or appliance, along with any associated supplier
approved data for that product as public data, and therefore
releasable, upon request, to a person seeking to maintain the
airworthiness of such product, if the Administrator determines
that:
(i) the certificate containing the requested data
has been inactive for three years;
(ii) the owner of record, or the owner of record's
heir, of the type certificate or supplemental
certificate has not been located despite a search of
due diligence by the agency; and
(iii) the designation of such data as public data
will enhance aviation safety.
(B) For purposes of this section, ``engineering data''
means type design drawings and specifications for the entire
product, including the original design data, any approved data
for any supplemental type certificates, and any approved data
for individual parts or components for the particular
aeronautical product.''.
SEC. 413. DESIGN ORGANIZATION CERTIFICATES.
Section 44704(e) is amended--
(1) in paragraph (1)--
(A) by striking ``Beginning 7 years after the date
of enactment of this subsection,'' and inserting
``Effective January 1, 2013,''; and
(B) by striking ``44701(a) for the type
certification of aircraft, aircraft engines,
propellers, or appliances.'' and inserting ``44701.'';
(2) in paragraph (2), by striking ``testing'' and inserting
``production''; and
(3) by revising paragraph (3) to read as follows:
``(3) Issuance of certificate based on design organization
certification.--The Administrator may rely on the Design
Organization for certification of compliance under this
section.''.
SEC. 414. CONTRACT TOWER PROGRAM.
Section 47124(b) is amended--
(1) in paragraph (1), by striking ``(Visual Flight Rules)
level I'' and inserting ``nonapproach control''; and
(2) in paragraph (2), by striking ``an airport traffic
control tower classified as a level I (Visual Flight Rules)''
and inserting ``a low activity nonapproach control air traffic
control''.
SEC. 415. ENHANCED OVERSIGHT OF NEXT GENERATION AIR TRANSPORTATION
SYSTEM JOINT PLANNING AND DEVELOPMENT OFFICE.
Section 709 of Vision 100--Century of Aviation Reauthorization Act
(Public Law 108-176, Dec. 12, 2003, 117 Stat. 2490, 2582) (49 U.S.C.
40101 note) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by adding at the end, ``The
Director of the Office shall be supervised for various
purposes by such officer or officers of the Department
as the Secretary may specify.
(B) adding at the end the following:
``(5) The Director of the Office shall be a voting member
of the Federal Aviation Administration's Joint Resources
Council and the Air Traffic Organization's Executive
Council.'';
(2) by redesignating subsections (d) and (e) as (e) and (f)
and inserting the following:
``(d) Consolidated Operational Evolution Partnership.--The
Administrator of the Federal Aviation Administration shall develop and
publish annually a consolidated operational evolution partnership that
provides a detailed description of how the agency is implementing the
Next Generation Air Transportation System.''; and
(3) in subsection (e)(2), as redesignated, by striking
``plan.'' and inserting ``plan, and how the respective budgets,
and assignment of expert personnel, of the Federal Aviation
Administration, the National Aeronautics and Space
Administration, the Departments of Defense, the Department of
Homeland Security, the Department of Commerce and any other
Federal agency that has an important interest in, or
responsibility for, the Next Generation Air Transportation
System support specific operational improvements for such
System.''.
TITLE V--AVIATION SAFETY, SECURITY, CAPACITY AND CONNECTIVITY
IMPROVEMENTS
SEC. 501. DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST OF
NATIONAL SECURITY.
Section 40119(b) is amended by adding at the end the following:
``(3) Section 552 of title 5, United States Code, does not
apply to disclosures the Administrator of the Federal Aviation
Administration may make from the agency's systems of records to
any Federal law enforcement, intelligence, protective,
immigration, or national security official in order to assist
the official receiving that information in the performance of
official duties.''.
SEC. 502. FAA ACCESS TO CRIMINAL HISTORY RECORDS OR DATABASE SYSTEMS.
(a) In General.--Chapter 401 is revised by adding new section 40130
to read as follows:
``Sec. 40130. FAA access to criminal history records or databases
systems
``(a) Access to Records or Databases Systems.--(1) Notwithstanding
section 534 of title 28, United States Code, and the implementing
regulations for such section (28 C.F.R. part 20), the Administrator of
the Federal Aviation Administration is authorized to access a system of
documented criminal justice information maintained by the Department of
Justice or by a State but may do so only for the purpose of carrying
out its civil and administrative responsibilities to protect the safety
and security of the National Airspace System or to support the missions
of the Department of Justice, the Department of Homeland Security and
other law enforcement agencies. The Administrator shall be subject to
the same conditions or procedures established by the Department of
Justice or State for access to such an information system by other
governmental agencies with access to the system.
``(2) The Administrator may not use the access authorized under
paragraph (1) to conduct criminal investigations.
``(b) Designated Employees.--The Administrator shall, by order,
designate those employees of the Administration who shall carry out the
authority described in subsection (a). Such designated employees may--
``(1) have access to and receive criminal history, driver,
vehicle, and other law enforcement information contained in the
law enforcement databases of the Department of Justice, or of
any jurisdiction in a State in the same manner as a police
officer employed by a State or local authority of that State
who is certified or commissioned under the laws of that State;
``(2) use any radio, data link, or warning system of the
Federal Government and of any jurisdiction in a State that
provides information about wanted persons, be-on-the-lookout
notices, or warrant status or other officer safety information
to which a police officer employed by a State or local
authority in that State who is certified or commissioned under
the laws of that State has access and in the same manner as
such police officer; or
``(3) receive Federal, State, or local government
communications with a police officer employed by a State or
local authority in that State in the same manner as a police
officer employed by a State or local authority in that State
who is commissioned under the laws of that State.
``(c) Definition.--For purposes of this section, `system of
documented criminal justice information' means any law enforcement
databases, systems or communications containing information concerning
identification, criminal history, arrests, convictions, arrest
warrants, wanted or missing persons, including the National Crime
Information Center (NCIC) and its incorporated criminal history
databases and the National Law Enforcement Telecommunications System
(NLETS).''.
(b) Conforming Amendment.--The analysis for chapter 401 is amended
by adding at the end the following:
``40130. FAA access to criminal history records or databases
systems.''.
SEC. 503. ALLOCATION OF OPERATING AUTHORIZATIONS AT LAGUARDIA AIRPORT.
(a) In General.--Subchapter I of Chapter 417 of title 49, United
States Code, is amended by adding at the end the following:
``Sec. 41724. Allocation of operating authorizations at LaGuardia
Airport.
``(a) General Authority.--(1) Notwithstanding any other provision
of law, the Secretary of Transportation and the Administrator of the
Federal Aviation Administration may determine that the use of a market
based mechanism, such as an auction or congestion pricing, is
appropriate to promote the efficient movement of air traffic at
LaGuardia Airport. To accomplish this objective, the Administrator
shall determine the operational capacity of LaGuardia airport, in
accordance with section 40103 of this title.
``(2) If the Secretary makes a the determination under subsection
(a) that use of a market-based mechanism is appropriate, the Secretary
and the Administrator shall permit the Port Authority of New York and
New Jersey (Port Authority) to implement a market-based measure for the
allocation of operating authorizations at the airport in accordance
with subsection (b). If the Port Authority fails to implement such a
mechanism within one year of the Secretary's determination, the
Secretary may implement a market-based mechanism at LaGuardia Airport
in accordance with section 41725 of this title.
``(b) Rulemaking.--(1) The Secretary shall issue a rule to
establish the terms and conditions under which interested persons may
obtain operating authorizations through a market-based mechanism
authorized by subsection (a). The rule shall also, at a minimum,
establish the procedures, timing, terms and conditions for the
implementation of this mechanism. Such regulation shall include
provisions to protect the public interest as set forth in section 40101
of this title including:
``(A) placing maximum reliance on competitive market
forces;
``(B) avoiding unreasonable industry concentration;
``(C) encouraging entry into air transportation markets by
new and existing air carriers;
``(D) ensuring that passengers in small communities and
rural and remote areas have access to affordable, scheduled air
service; and
``(E) providing air carriers and the traveling public a
stable and predictable schedule for planning future travel.
``(2) In developing the terms and conditions for an allocation
mechanism, the Secretary may distinguish among classes of aircraft
operators and among types of air service.
``(c) Escrow Account.--If the Port Authority implements a market-
based mechanism under this section and such mechanism produces annual
revenue in excess of the annual administrative costs associated with
the establishment and administration of the mechanism, the Port
Authority shall deposit the excess revenue in an escrow account.
Expenditures may be made from the escrow account on eligible airport-
related projects, in accordance with section 40117 of this title, or on
any other project that the Secretary finds is in the public interest.
``(d) Rules of Construction.--Nothing in this section or in the use
of a market-based mechanism authorized by this section shall:
``(1) diminish the authority of the Administrator under
other provisions of this title to regulate the safe and
efficient use of the national airspace, including the
withdrawal of operating authorizations obtained under this
section when required in the public interest; or
``(2) be considered for purpose of any Federal law a major
Federal action significantly affecting the human environment.
``(e) Treatment as Additional Revenue.--Expenditures or other
financial assistance provided under paragraph (c) shall be in addition
to funds that would otherwise be provided under the Airport Improvement
Program or any other Federal assistance program.''.
(b) Conforming Amendment.--The analysis of subchapter I of chapter
417 is amended by adding at the end the following:
``41724. Allocation of operating authorizations at LaGuardia
Airport.''.
SEC. 504. PILOT PROGRAM FOR MARKET-BASED MECHANISMS AT CONGESTED
AIRPORTS.
(a) Pilot Program.--Subchapter I of chapter 417 of title 49, United
States Code, is amended by adding at the end the following:
``Sec. 41725. Pilot Program to evaluate market-based mechanisms at
congested airports
``(a) In General.--In order to promote the efficient use of airport
capacity or the efficient movement of air traffic, the Secretary of
Transportation shall establish a pilot program for market-based pricing
mechanisms for domestic flights at not more than fifteen airports under
which an airport owner or operator may adopt, or the Administrator of
the Federal Aviation Administration may impose, a market-based
mechanism for the airport in accordance with the procedures established
by this section.
``(b) Regional Delay.--(1) The Secretary may approve the
application of an airport owner or operator to participate in the
program if the Secretary finds that:
``(A) the airport experiences demand exceeding existing
capacity in the aggregate or during specific times or dates;
``(B) delays at the airport have a significant adverse
effect on the regional airspace; and
``(C) the market-based mechanism proposed by the airport
owner or operator will not result in a disincentive for the
airport operator to add capacity where possible.
``(2) Once the airport's participation in the program is approved,
the airport owner or operator may implement a market-based mechanism,
and, in the case of a congestion fee or auction, establish the method
of collecting such revenue. Such fees shall be reasonable and not
unjustly discriminatory.
``(3) An airport owner or operator may establish or adjust a
market-based mechanism under this program only after consultation with
the Administrator, air carriers serving the airport, and operators of
aircraft based at the airport.
``(4) If an auction or congestion fee implemented under this
section produces annual revenue in excess of the annual administrative
costs associated with the establishment and administration of the fee,
the airport owner or operator shall deposit the excess revenue in an
escrow account. Expenditures may be made from the escrow account on
eligible airport-related projects, in accordance with section 40117 of
this title, or on any other project that the Secretary finds is in the
public interest.
``(c) Delays Affecting the National System.--(1) If the Secretary
finds that the capacity constraints at an airport cause significant
delays beyond the region in which the airport is located and have
negative effects on the National Airspace System, and the owner or
operator of such airport has not already adopted a market-based
mechanism under paragraph (b), then the Secretary may implement,
through rulemaking, a market-based mechanism at the airport under the
program to address these effects on the system. If market-based
mechanisms are implemented, the Administrator of the Federal Aviation
Administration shall establish the method of collecting such fees. Such
fees shall be reasonable and not unjustly discriminatory.
``(2) The Administrator may establish or adjust a market-based
mechanism under this program only after consultation with the airport
owner or operator, air carriers serving the airport, and operators of
aircraft based at the airport.
``(3) If market-based mechanisms implemented by the Administrator
under this section produce annual revenue in excess of the annual
administrative costs associated with the establishment and
administration of the fee, the Administrator shall deposit the surplus
funds in an account established in the Treasury, and designated as the
Airspace Congestion Mitigation Account. Such surplus revenue shall be
available to the Secretary, as specified in appropriations Acts, until
expended, for the following uses:
``(A) airport capacity expansion or airport congestion and
delay reduction at the airport at which a market based
mechanism is implemented;
``(B) airport capacity expansion or airport congestion and
delay reduction at other congested airports, with priority
given to capacity projects in the same region as the airport at
which a market based mechanism is implemented;
``(C) improvement of ground access to the airports in the
vicinity, as defined by the Secretary, if the Secretary finds
that it would help relieve congestion at the airport where a
market-based mechanism is implemented;
``(D) construction, reconstruction or reconfiguration of
gates and related areas at the airport where a market-based
mechanism is implemented;
``(E) facilities, equipment, or other air traffic control
improvement projects that would enhance airport or airspace
capacity in the National Airspace System, with priority given
to projects in the region of an airport where a market-based
mechanism is implemented; and
``(F) assistance to air carriers in the purchase of
equipment for their aircraft to enable them to utilize air
traffic control facilities and equipment, including the
facilities and equipment purchased under subparagraph (E), in
order to enhance airport and airspace capacity.
``(d) Conformance With Requirements.--A market-based mechanism
implemented under this pilot program shall be deemed to meet the
requirements of section 40116 and chapter 471 of this title.
``(e) Definition.--For purposes of this section, the term `market-
based mechanism' includes the use of auctions, or congestion or peak
period pricing under which fees may vary by time of day or day of the
week in order to reduce aviation congestion and delays.
``(f) Exclusion.--An airport subject to the requirements of section
41724 shall not be eligible to participate in this pilot program.''.
(b) Conforming Amendment.--The analysis of subchapter I of chapter
417 is amended by adding at the end the following:
``41725. Pilot Program for market-based mechanisms at congested
airports.''.
TITLE VI--ENVIRONMENTAL STEWARDSHIP AND STREAMLINING
SEC. 601. AIRPORT COOPERATIVE RESEARCH PROGRAM.
Section 44511(f) is amended--
(1) in paragraph (1), by striking ``establish a 4-year
pilot'' and inserting ``maintain an''; and
(2) in paragraph (4), by--
(A) inserting ``pilot'' before ``program'' the
first time it appears; and
(B) striking ``program, including recommendations
as to the need for establishing a permanent airport
cooperative research program.'' and inserting
``program.''.
SEC. 602. STATE BLOCK GRANT PROGRAM.
Section 47128 is amended--
(1) in subsection (a), by striking ``regulations'' both
times it appears and inserting ``guidance'';
(2) in subsection (b)(4), by striking ``grant;'' and
inserting ``grant, including Federal environmental requirements
or an agreed upon equivalent;''; and
(3) by redesignating subsection (c) as (d) and inserting
the following new subsection (c):
``(c) Environmental Analysis and Coordination Requirements.--Any
Federal agency that must approve, license or permit a proposed action
by a participating State shall coordinate and consult with the State.
Such agency shall utilize the environmental analysis prepared by the
State, provided it is adequate, or supplement that analysis as
necessary to meet applicable Federal requirements.''.
SEC. 603. AIRPORT FUNDING OF SPECIAL STUDIES OR REVIEWS.
Section 47173(a) is amended by striking ``project.'' and inserting
``project, or to conduct special environmental studies related to a
federally funded airport project or for special studies or reviews to
support approved noise compatibility measures in a Part 150 program or
environmental mitigation in a Federal Aviation Administration Record of
Decision or Finding of No Significant Impact.''.
SEC. 604. ENVIRONMENTAL MITIGATION DEMONSTRATION PILOT PROGRAM.
(a) Pilot Program.--Chapter 471 is amended at the end by adding the
following new section:
``Sec. 47143. Environmental Mitigation Demonstration Pilot Program
``(a) In General.--The Secretary of Transportation shall carry out
a pilot program involving not more than six projects at public-use
airports under which the Secretary may make grants to sponsors of such
airports from funds apportioned under paragraph 47117(e)(1)(A) for use
at such airports for environmental mitigation demonstration projects
that will measurably reduce or mitigate aviation impacts on noise, air
quality or water quality in the vicinity of the airport.
Notwithstanding any other provision of this subchapter, an
environmental mitigation demonstration project approved under this
section shall be treated as eligible for assistance under this
subchapter.
``(b) Participation in Pilot Program.--A public-use airport shall
be eligible for participation in the pilot program.
``(c) Selection Criteria.--In selecting from among applicants for
participation in the pilot program, the Secretary may give priority
consideration to environmental mitigation demonstration projects that--
``(1) will achieve the greatest reductions in aircraft
noise, airport emissions, or airport water quality impacts
either on an absolute basis, or on a per dollar of funds
expended basis; and
``(2) will be implemented by an eligible consortium.
``(d) United States Government's Share.--Notwithstanding any other
provision of this subchapter, the United States Government's share of
the costs of a project carried out under this section shall be 50
percent.
``(e) Maximum Amount.--Not more than $2,500,000 may be made
available by the Secretary in grants under this section for any single
project.
``(f) Identifying Best Practices.--The Administrator may develop
and publish information identifying best practices for reducing or
mitigating aviation impacts on noise, air quality, or water quality in
the vicinity of airports, based on the projects carried out under the
pilot program.
``(g) Definitions.--In this section--
``(1) the term `eligible consortium' means a consortium
that comprises two or more of the following entities:
``(A) businesses incorporated in the United States;
``(B) public or private educational or research
organizations located in the United States;
``(C) entities of State or local governments in the
United States; or
``(D) Federal laboratories.
``(2) the term `environmental mitigation demonstration
project' means a project that:
``(A) introduces new conceptual environmental
mitigation techniques or technology with associated
benefits, which have already been proven in laboratory
demonstrations;
``(B) proposes methods for efficient adaptation or
integration of new concepts to airport operations; and
``(C) will demonstrate whether new techniques or
technology for environmental mitigation identified in
research are--
``(i) practical to implement at or near
multiple public use airports; and
``(ii) capable of reducing noise, airport
emissions, or water quality impacts in
measurably significant amounts.''.
(b) Conforming Amendment.--The analysis for subchapter I of chapter
471 is amended by adding at the end the following:
``47143. Environmental mitigation demonstration pilot program.''.
SEC. 605. GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT PROCEDURES.
Section 47504 is amended by adding at the end the following new
subsection:
``(e) Grants for Assessment of Flight Procedures.--(1) The
Secretary is authorized in accordance with paragraph (c)(1) to make a
grant to an airport operator to assist in completing environmental
review and assessment activities for proposals to implement flight
procedures that have been approved for airport noise compatibility
planning purposes under subsection (b).
``(2) The Administrator of the Federal Aviation Administration may
accept funds from an airport sponsor, including funds provided to the
sponsor under paragraph (1), to hire additional staff or obtain the
services of consultants in order to facilitate the timely processing,
review and completion of environmental activities associated with
proposals to implement flight procedures submitted and approved for
airport noise compatibility planning purposes in accordance with this
section. Funds received under this authority shall not be subject to
the procedures applicable to the receipt of gifts by the
Administrator.''.
SEC. 606. RESEARCH CONSORTIUM FOR LOWER ENERGY, EMISSIONS AND NOISE
TECHNOLOGY PARTNERSHIP.
(a) Establishment of Consortium.--Subchapter I of chapter 475 is
amended by adding at the end the following:
``Sec. 47512. Research consortium for lower energy, emissions and noise
technology partnership
``(a) CLEEN Engine Technology Partnership.--The Administrator of
the Federal Aviation Administration shall enter into a cooperative
agreement with the Partnership for AiR Transportation Noise and
Emissions Reduction (PARTNER) Center of Excellence for the development,
maturing, and certification for Continuous Lower Energy, Emissions and
Noise (CLEEN) engine and airframe technology for aircraft over the next
ten years.
``(b) Performance Objective.--The Administrator shall establish the
following performance objectives for the program to be completed by
2015:
``(1) certifiable aircraft technology that increases
aircraft fuel efficiency by 25 percent relative to 1997
subsonic aircraft technology;
``(2) certifiable engine technology that reduces landing
and takeoff cycle (LTO) nitrogen oxide emissions by 50 percent,
without increasing other gaseous or particle emissions, over
the International Civil Aviation Organization (ICAO) standard
adopted in 2004;
``(3) certifiable aircraft technology that reduces noise
levels by 10 dB relative to 1997 subsonic jet aircraft
technology;
``(4) determination of the feasibility of use of
alternative fuels in aircraft systems, including successful
demonstration and quantification of benefits; and
``(5) determination of the extent to which new engine and
aircraft technologies may be used to retrofit or re-engine
aircraft so as to increase the level of penetration into the
commercial fleet.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated from the funding provided for the Next Generation Air
Transportation System program such sums as necessary to carry out this
section.
``(d) The Administrator shall publish a progress report on the
CLEEN program each year beginning in 2009.''.
(b) Conforming Amendment.--The analysis of subchapter I of chapter
475 is amended by adding at the end:
``47512. Research consortium for lower energy, emissions and noise
technology partnership.''.
SEC. 607. AMENDMENTS TO AIR TOUR MANAGEMENT PROGRAM.
Section 40128 is amended--
(1) in subsection (a)--
(A) in clause (1)(C), by striking ``lands.'' and
inserting ``lands, or a voluntary agreement.''; and
(B) by adding at the end the following:
``(5) Exemption.--Notwithstanding paragraph (1), units of
the national park system that have 50 or fewer commercial air
tour flights a year shall be exempt from the requirements of
this section, except that the Director may determine at any
time that this exemption shall not apply to any park for which
the Director determines an air tour management plan or
voluntary agreement is necessary to protect park resources and
values or park visitor use and enjoyment. The Director shall
inform the Administrator in writing of such determinations. The
Director and Administrator shall publish an annual list of
national parks that fall within the exemption provided by this
paragraph. A commercial air tour operator conducting commercial
air tours in a national park that is exempt from the
requirements of this section shall submit to the Administrator
and the Director an annual report of the number of air tour
flights it conducts each year in such exempted park.'';
(2) in subsection (b), by adding at the end the following
new paragraph:
``(7) Voluntary agreements.--(A) As an alternative to an
air tour management plan, for any unit of the national park
system, the Director and the Administrator may enter into a
voluntary agreement to manage commercial air tour operations
over a park unit with any commercial air tour operators that
have applied for authority to conduct air tour operations over
the park unit, including existing operators that have interim
operating authority, and new entrant applicants.
``(B) Such voluntary agreement shall address the management
issues necessary to protect park resources and visitor use
without compromising aviation safety, and may--
``(i) include provisions described in paragraph
(3)(B) through (E);
``(ii) include provisions to insure the stability
of and compliance with the voluntary agreement; and
``(iii) provide for fees for operating over the
park.
``(C) The Director and the Administrator shall offer the
opportunity for public review of a proposed voluntary
agreement, and shall consult with any Indian tribe whose tribal
lands are, or may be, overflown by commercial air tour
operators under a voluntary agreement.
``(D) Following such public review and consultation, a
voluntary agreement may be implemented without further
administrative or environmental process.
``(E) A voluntary agreement may be rescinded at the
discretion of the Director or the Administrator if the Director
determines that the agreement is not adequately protecting park
resources or visitor experiences, or the Administrator
determines that the agreement is adversely affecting aviation
safety or the national aviation system. If a voluntary
agreement for a park is rescinded, the operators must conform
to the requirements for interim operating authority under
subsection (c) until an air tour management plan for the park
is in effect.'';
(3) in subsection (c)--
(A) by revising clause (2)(I) to read as follows:
``(I) may allow for modifications of the interim
operating authority without further environmental
process provided that--
``(i) adequate information on the
operator's existing and proposed operations is
provided to the Administrator and the Director
by the operator making the request;
``(ii) the Administrator agrees that there
would be no adverse impact on aviation safety;
and
``(iii) the Director agrees, based on
professional expertise regarding the protection
of the park resources and values and visitor
use and enjoyment.'';
(B) in paragraph (3)--
(i) in clause (A), by striking from ``if
the Administrator determines'' through the end
and inserting ``without further environmental
process provided that--
``(i) adequate information on the
operator's proposed operations is provided to
the Administrator and the Director by the
operator making the request;
``(ii) the Administrator agrees that there
would be no adverse impact on aviation safety;
and
``(iii) the Director agrees, based on
professional expertise regarding the protection
of park resources and values and visitor use
and enjoyment.''; and
(ii) by striking clause (B) and
redesignating clause (C) as (B);
(4) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively; and
(5) inserting new subsection (d) as follows:
``(d) Commercial Air Tour Operator Reports.--Each commercial air
tour operator providing a commercial air tour over a national park unit
under interim operating authority or in accordance with an air tour
management plan shall report the number of commercial air tour
operations over each park unit and other data requested by the
Administrator and Director in order to facilitate administering the
provisions of this section. The reports shall be on a frequency and in
a format requested by the Administrator and Director, and shall be
submitted to both the Administrator and Director or their designees.
The Administrator and Director shall jointly issue an initial request
for the reports authorized in this subsection no later than three
months after the date of enactment of this provision.''.
TITLE VII--AVIATION INSURANCE
SEC. 701. GENERAL AUTHORITY.
(a) In General.--Section 44302 is amended--
(1) by repealing subsection (b); and
(2) in subsection (f)(2)--
(A) by striking ``paragraph (1)--(A) in'' and
inserting ``paragraph (1), in''; and
(B) by striking ``2002; and'' and inserting
``2002.''; and
(C) by striking paragraph (B).
(b) Conforming Amendment.--Section 44303(a) is amended by striking
``, or reimburse insurance costs,''.
SEC. 702. EXTENSION OF AUTHORITY TO LIMIT THIRD PARTY LIABILITY OF AIR
CARRIERS ARISING OUT OF ACTS OF TERRORISM.
Section 44303(b) is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2011''.
SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY.
Section 44304 is amended in the second sentence by striking ``the
carrier'' and inserting ``any insurance carrier''.
SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS.
Section 44308 is amended in subsection (c)(1) in the second
sentence by striking ``agent'' and inserting ``agent, or a claims
adjuster who is independent of the underwriting agent,''.
SEC. 705. EXTENSION OF PROGRAM AUTHORITY.
Section 44310 is amended by striking ``March 30, 2008.'' and
inserting ``March 30, 2013.''.
TITLE VIII--AVIATION SERVICE IMPROVMENTS
SEC. 801. EXTENSION OF COMPETITIVE ACCESS REPORTS.
Section 47107(s)(3) is amended by striking ``2008'' and inserting
``2012''.
SEC. 802. ESSENTIAL AIR SERVICE REFORM.
(a) Definition.--Section 41731 is amended to read as follows:
``Sec. 41731. Definition
``In this subchapter `eligible place' means a place in the United
States--
``(1) that as of the date of enactment of the Next
Generation Air Transportation System Financing Reform Act of
2007, was receiving subsidized Essential Air Service;
``(2) that is more than 70 highway miles from the nearest
medium or large hub airport; and
``(3) at which the subsidy per passenger does not exceed
$200 for a community that is less than 210 miles from the
nearest medium or large hub airport.''.
(b) Essential Air Service.--Section 41732 is amended to read as
follows:
``Sec. 41732. Essential air service
``Essential air service provided under section 41733 of this title
is transportation of passengers and cargo to a destination airport and
at a level of service comparable to what the community received on the
date of enactment of the Next Generation Air Transportation System
Financing Reform Act of 2007.''.
(c) Availability of Compensation.--Section 41733 is amended to read
as follows:
``Sec. 41733. Selection criteria and availability of compensation
``(a) Availability of Compensation.--
``(1) If the Secretary decides that essential air service
under section 41732 will not be provided to an eligible place
without compensation, the Secretary shall provide notice that
any air carrier may apply to provide essential air service to
the place for compensation under this section. In selecting an
applicant, the Secretary may consider, among other factors--
``(A) the demonstrated reliability of the applicant
in providing air service;
``(B) the contractual and marketing arrangements
the applicant has made with an air carrier(s) to ensure
service beyond the destination airport;
``(C) the interline arrangements that the applicant
has made with a larger carrier to allow passengers and
cargo of the applicant at the destination airport to be
transported by the carrier(s) through one reservation,
ticket, and baggage check-in;
``(D) the preferences of the actual and potential
users of air service at the eligible place, giving
substantial weight to the views of the elected
officials representing the users; and
``(E) the relative subsidy costs to the United
States Government based on the applicants' proposals.
``(2) Under guidelines prescribed under section 41737 of
this subchapter, the Secretary shall pay the rate of
compensation for providing essential air service under this
section and section 41734 of this subchapter.
``(b) Compensation Payments.--The Secretary shall pay compensation
under this section at times and in the way the Secretary decides is
appropriate. The Secretary shall end payment of compensation to an air
carrier for providing essential air service to an eligible place when
the Secretary decides the compensation is no longer necessary to
maintain essential air service to the place.
``(c) Review.--The Secretary shall review periodically the level of
essential air service for each eligible place. Based on the review and
consultations with the interested community and the appropriate State
authority of the State in which the community is located, the Secretary
may make appropriate adjustments in the level of service. However, the
level of service that is subsidized will not be more than that which a
community is receiving as of the date of enactment of the Next
Generation Air Transportation System Financing Reform Act of 2007.''.
(d) Ending, Suspending or Reducing Essential Air Service.--Section
41734 is amended to read as follows:
``Sec. 41734. Ending, suspending, and reducing essential air service
``(a) Notice Required.--An air carrier may end, suspend, or reduce
air transportation to an eligible place below the level of essential
air service established for that place under this subchapter only after
giving the Secretary of Transportation, the appropriate State
authority, and the affected communities at least 90 days' notice before
ending, suspending, or reducing that air service.
``(b) Continuation of Service for 30 Days After Notice Period.--If
at the end of the notice period under subsection (a) of this section
the Secretary has not found another air carrier to provide essential
air service to the eligible place, the Secretary shall require the
carrier providing notice to continue to provide essential air service
to the place for an additional 30-day period or until another air
carrier begins to provide essential air service to the place, whichever
occurs first.
``(c) Continuation of Service for Additional 30-Day Periods.--If at
the end of the 30-day period under subsection (b) of this section the
Secretary decides another air carrier will not provide essential air
service to the place on a continuing basis, the Secretary shall require
the air carrier providing service to continue to provide service for
additional 30-day periods until another air carrier begins providing
service on a continuing basis. At the end of each 30-day period, the
Secretary shall decide if another air carrier will provide service on a
continuing basis.
``(d) Continuation of Compensation After Notice Period.--If an air
carrier receiving compensation under this subchapter for providing
essential air service to an eligible place is required to continue to
provide service to the place under this section after the 90-day notice
period under subsection (a) of this section, the Secretary shall
continue to pay that compensation after the last day of that period.
The Secretary shall pay the compensation until the Secretary finds
another air carrier to provide the service to the place or the 180th
day after the carrier filed notice to suspend service, whichever is
earlier. If, after the 180th day, the Secretary has not found another
air carrier to provide the service, the carrier required to continue to
provide that service shall receive compensation sufficient to pay for
the fully allocated actual cost to the air carrier of performing the
essential air service that was being provided when the 90-day notice
was given under subsection (a) of this section plus a reasonable return
on investment that is equal to 5 percent of operating costs.
``(e) Finding Replacement Service Providers.--When the Secretary
requires an air carrier to continue to provide essential air service to
an eligible place, the Secretary shall promptly issue a request for
proposals to find another air carrier to provide at least the essential
air service set forth in section 41732 to the place on a continuing
basis.''.
(e) Compensation Guidelines.--Section 41737 is amended to read as
follows:
``Sec. 41737. Compensation guidelines, limitations, and claims
``(a) Compensation Guidelines.--
``(1) The Secretary of Transportation shall prescribe
guidelines governing the rate of compensation payable under
this subchapter. The guidelines shall be used to determine the
reasonable amount of compensation required to ensure the
continuation of air service or air transportation under this
subchapter. The guidelines shall--
``(A) provide for a reduction in compensation when
an air carrier does not provide service or
transportation agreed to be provided;
``(B) consider amounts needed by an air carrier to
promote public use of the service or transportation for
which compensation is being paid; and
``(C) include expense elements based on
representative costs of air carriers providing
scheduled air transportation of passengers, property,
and mail on equipment of the type the Secretary decides
is appropriate for providing the service or
transportation for which compensation is being
provided.
``(2) Promotional amounts described in paragraph (1)(B) of
this subsection shall be a special, segregated element of the
compensation provided to a carrier under this subchapter.
``(b) Claims.--Not later than 15 days after receiving a written
claim from an air carrier for compensation under this subchapter, the
Secretary shall--
``(1) pay or deny the United States Government's share of a
claim; and
``(2) if denying the claim, notify the person of the denial
and the reasons for the denial.
``(c) Authority To Make Agreements and Incur Obligations.--The
Secretary may make agreements and incur obligations from the Airport
and Airway Trust Fund established under section 9502 of the Internal
Revenue Code of 1986 (26 U.S.C. 9502) to pay compensation under this
subchapter. An agreement by the Secretary under this subsection is a
contractual obligation of the Government to pay the Government's share
of the compensation.
``(d) Eligibility Determinations.--
``(1) In making all determinations on eligibility for
compensation under this subchapter, the Secretary shall rank
all compensated points in their order of relative decreasing
driving distance from the nearest large or medium hub airport.
The term ``driving distance'' means the shortest driving
distance as determined by the Federal Highway Administration.
``(2) If the funds appropriated under Section 41742 are not
sufficient to pay for service to all of the eligible places,
the Secretary shall provide subsidy first to the eligible
communities that do not have highway access to a medium or
large hub airport, then to the most isolated community, as
determined under paragraph (1), that requires compensation and
then the next most isolated community requiring compensation,
and so on, in order, until the Secretary has obligated not more
than the amount authorized to be appropriated from the Airport
and Airway Trust Fund under 49 U.S.C. 48203(b), which shall
remain available until expended.''.
(e) Authorization.--Section 41742 is amended to read as follows:
``Sec. 41742. Essential Air Service authorization
``Beginning in fiscal year 2009, $50,000,000 is authorized and
shall be made available immediately for obligation and expenditure to
the Secretary of Transportation out of the Airport and Airway Trust
Fund established under section 9502 of the Internal Revenue Code of
1986 (26 U.S.C. 9502), to carry out the essential air service program
under this subchapter for each fiscal year. Such amount shall remain
available until expended.''.
(f) Repealed Provisions.--
(1) Sections 41735, 41736, 41745, 41747, and 41748 are
repealed.
(2) Subchapter III of chapter 417 is repealed.
(g) Conforming Amendments.--
(1) The analysis to chapter 417 is amended by striking the
items relating to sections 41735, 41736, 41745, 41747, and
41748.
(2) The analysis to chapter 417 is amended by striking all
of the items relating to subchapter III.
(3) Section 41738 is amended by deleting ``or air
transportation to a place designated under 41736''.
SEC. 803. TERMINATION OF DOT AUTHORITY TO SET INTERNATIONAL MAIL RATES.
(a) Elimination of International Mail Rate Setting Authority.--
Section 41901(b)(1) is amended by striking ``in foreign air
transportation or''.
(b) Effective Date.--The amendment made by subsection (a) shall
become effective 16 months after the date of enactment of this Act.
SEC. 804. AIR CARRIAGE OF INTERNATIONAL MAIL.
(a) Elimination of Requirement To File Contract.--Section 5402(b)
of title 39, United States Code, is amended by striking the last three
sentences.
(b) Elimination of Schedules for Mail Transportation.--Section
41902 is amended--
(1) in subsection (a) by striking ``in foreign air
transportation or'';
(2) by revising subsection (b) to read as follows:
``(b) Statements on Places and Schedules.--Every air carrier shall
file with the United States Postal Service a statement showing--
``(1) the places between which the carrier is authorized to
transport mail in Alaska;
``(2) every schedule of aircraft regularly operated by the
carrier between places described in clause (1) of this
subsection and every change in each schedule; and
``(3) for each schedule, the placed served by the carrier
and the time of arrival at, and departure from, each place.'';
(3) by deleting subsections (e) and (f).
(c) Effective Date.--The amendment made by subsection (a) shall
become effective 16 months after the date of enactment of this Act.
SEC. 805. CONTENTS OF COMPETITION PLANS.
Section 47106(f)(2) is amended--
(1) by striking ``patterns of air service,'';
(2) by inserting ``and'' before ``whether''; and
(3) by striking ``, and airfare levels (as compiled by the
Department of Transportation) compared to other large
airports''.
SEC. 806. AIRPORT PRIVATIZATION.
Section 47134 is amended--
(1) in the first sentence of subsection (b), by striking
``5 airports'' and inserting ``15 airports'';
(2) by revising paragraph (b)(1)(A) to read as follows:
``(1) Use of revenues.--
``(A) In general.--The Secretary may grant an
exemption to a sponsor from the provisions of section
47107(b) and 47133 of this title (and any other law,
regulation, or grant assurance) to the extent necessary
to permit the sponsor to recover from the sale or lease
of the airport such amount as may be approved by the
Secretary after the sponsor has consulted--
``(i) in the case of a primary airport,
with each air carrier and foreign air carrier
serving the airport as determined by the
Secretary; or
``(ii) in the case of a non-primary
airport, with at least 65 percent of the owners
of aircraft based at that airport, as
determined by the Secretary.'';
(3) by striking subparagraph (b)(1)(C);
(4) in subsection (c), by--
(A) striking paragraphs (4), (5), and (9) and
redesignating paragraphs (6) through (8) as paragraphs
(4) through (6) respectively; and
(B) adding a new paragraph (7) at the end to read
as follows:
``(7) No part of a fee charged to an air carrier or a
foreign air carrier may include a return on investment or
recovery of principal with respect to consideration paid to the
public agency for the lease or sale of the airport unless such
part of the fee is approved by the air carrier or foreign air
carrier.''; and
(5) by striking paragraph (d) and redesignating paragraphs
(e) through (m) as (d) through (l) respectively.
SEC. 807. CLARIFICATION OF AIR CARRIER FEE DISPUTES.
Section 47129 is amended--
(1) by inserting ``and foreign air carrier'' after ``air
carrier'' in the section heading, in the heading for subsection
(d), and in the paragraph heading for paragraph (d)(2);
(2) by striking ``air carrier'' each place it appears in
text, and inserting ``air carrier or foreign air carrier'';
(3) by striking ``air carrier's'' each place it appears and
inserting ``air carrier's or foreign air carrier's'';
(4) by striking ``air carriers'' each place it appears and
inserting ``air carriers or foreign air carriers''; and
(5) by striking ``(as defined in section 40102 of this
title)'' in subsection (a) and inserting ``(as those terms are
defined in section 40102 of this title)''.
SEC. 808. AMENDMENTS TO CHAPTER 415.
(a) In General.--Chapter 415 is amended--
(1) by revising section 41501 to read as follows:
``Sec. 41501. Establishing reasonable prices, classifications, rules
and practices for foreign air transportation
``Every air carrier and foreign air carrier shall establish, comply
with, and enforce reasonable prices, classifications, rules and
practices related to foreign air transportation.''.
(2) by revising section 41502 to read as follows:
``Sec. 41502. Establishing joint prices for through routes with other
carriers
``An air carrier, including an indirect air carrier, may establish
reasonable joint prices and through service with another carrier.''.
(3) by repealing sections 41503, 41505, 41506, 41508, and
41510.
(4) by revising section 41504(a) to read as follows:
``(a) Filing and Contents.--In the way prescribed by regulation by
the Secretary of Transportation, any air carrier or foreign air carrier
providing foreign air transportation between places designated by the
Secretary, and any air carrier or foreign air carrier granted immunity
from the antitrust laws for the coordination of prices pursuant to
section 41308 of this title, shall file with the Secretary, publish,
and keep open to public inspection, tariffs showing the prices for the
foreign air transportation provided by the carrier or provided by the
carrier and another air carrier or foreign air carrier in which through
service and joint prices have been established. A tariff--
``(1) shall contain--
``(A) to the extent the Secretary requires by
regulation, a description of the classifications,
rules, and practices related to the foreign air
transportation;
``(B) a statement of the prices in money of the
United States; and
``(C) other information the Secretary requires by
regulation; and
``(2) may contain--
``(A) a statement of the prices in money that is
not money of the United States; and
``(B) information that is required under the laws
of a foreign country in or to which the air carrier or
foreign air carrier is authorized to operate.''; and
(5) by striking subsection 41509(e) and redesignating
subsections 41509(f) and (g) as 41509(e) and (f) respectively.
(b) Conforming Amendments.--
(1) The analysis for chapter 415 is amended by striking the
items relating to sections 41503, 41505, 41506, 41508, and
41510;
(2) Section 40109(c) is amended by striking ``41505,'';
(3) Section 41110(a)(2)(B) is amended--
(A) by striking ``41503,'';
(B) by striking ``41506,''; and
(C) by striking ``41510,''
(4) Section 46301 is amended by striking ``41505,''.
TITLE IX--INTERNAL REVENUE CODE AMENDMENTS
SEC. 901. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this Title an
amendment or repeal is expressed in terms of an amendment to, or a
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
SEC. 902. MODIFICATIONS TO TAX ON AVIATION FUEL.
(a) In General.--Effective October 1, 2008, section 4081(a)(2)
(relating to rates of tax) is amended--
(1) in paragraph (A) by inserting before the comma at the
end of subparagraph (A)(ii) ``, except that the rate of tax
imposed on and after October 1, 2008, shall be 70.0 cents per
gallon'';
(2) by revising paragraph (C) to read as follows:
``(C) Taxes imposed on fuel used in aviation.--In
the case of kerosene for use in aviation, the rate of
tax under subparagraph (A)(iii) shall be--
``(i) in the case of use for commercial
aviation by a person registered for such use
under section 4101 and in which the fuel is
removed from any refinery or terminal directly
into the fuel tank of an aircraft, 4.3 cents
per gallon, except that the rate of tax imposed
on and after October 1, 2008, shall be 13.6
cents per gallon; and
``(ii) in the case of use for aviation not
described in clause (i), 21.8 cents per gallon,
except that the rate of tax imposed on and
after October 1, 2008, shall be 70.0 cents per
gallon in a case in which the fuel is removed
from any refinery or terminal directly into the
fuel tank of an aircraft.''; and
(3) by inserting at the end the following:
``(E) Inflation adjustment of tax rates.--In the
case of taxable events in a calendar year after 2009,
the amount per gallon specified in subparagraph (C)(i)
shall be increased by an amount equal to such amount,
multiplied by the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year by
substituting ``2008'' for ``1992'' in subparagraph (B)
thereof. Any increase determined under the preceding
sentence shall be rounded to the nearest tenth of a
cent.
``(F) Adjustment of tax rates to reflect cost
imposed on the system.--In the case of taxable events
in a calendar year after 2009, the amount per gallon
specified in subparagraphs (A)(ii) and (C)(ii) in
excess of the rate specified in (C)(i) shall be an
amount based on the costs, as defined in section
45305(b)(6), imposed by operators who use fuel on which
such taxes are paid as determined by the Federal
Aviation Administration's cost allocation system, and
shall be increased or decreased once every two years as
necessary to cover such costs by an amount determined
by the Federal Aviation Administration. Any increase or
decrease determined under the preceding sentence shall
be rounded to the nearest tenth of a cent.''.
(b) Conforming Changes to Fuel Tax Rate Provisions.--
(1) Tax rates under section 4081(d)(2).--Effective October
1, 2007, section 4081(d)(2) (relating to aviation fuel tax
termination) is amended to read as follows:
``(2) Aviation fuels.--The rates of tax specified in
subsection (a)(2)(A)(ii), (a)(2)(C)(i), and (a)(2)(C)(ii) shall
be 0.00 cents per gallon after September 30, 2017.''.
(2) Tax rates under section 4041.--Effective October 1,
2008, section 4041(c)(3) (relating to certain liquids used as a
fuel in aviation) is amended by inserting before the period at
the end of paragraph (3) ``, except that the rate of tax
imposed on and after October 1, 2008, shall be the rate, after
adjustment for inflation under 4081(a)(2)(E), applicable under
section 4081(a)(2)(C)(i) with respect to any fuel sold for use
or used for commercial aviation, and under section
4081(a)(2)(A)(ii) or 4081(a)(2)(C)(ii) with respect to any
other fuel sold for use or used in aircraft.''.
(c) Fuel Tax Refund Limitations.--Effective October 1, 2008,
section 6427(l) is amended--
(1) in subsection (l)(4), by inserting before the period at
the end of subsection (l)(4)(A)(ii) ``and, on and after October
1, 2008, so much of the rate of tax specified in section
4081(a)(2)(A)(iii) as does not exceed the tax specified in
section 4081(a)(2)(C)(i), after adjustment for inflation under
4081(a)(2)(E)''; and
(2) in subsection (l)(5), by inserting before the period at
the end of subsection (l)(5)(A)(ii) ``and, on and after October
1, 2008, so much of the rate of tax specified in section
4081(a)(2)(A)(iii) as does not exceed the tax specified in
section 4081(a)(2)(C)(ii), after adjustment for inflation under
4081(a)(2)(E).''.
SEC. 903. MODIFICATIONS TO TAX ON TRANSPORTATION OF PERSONS BY AIR.
(a) One-Year Extension of Current Taxes.--(1) Section
4261(j)(1)(ii) (relating to imposition of tax on persons) is amended by
striking ``September 30, 2007,'' and inserting ``September 30, 2008''.
(2) Section 4271(d)(1)(A)(ii) (relating to imposition of tax on
property) is amended by striking ``September 30, 2007,'' and inserting
``September 30, 2008''.
(b) Modifications to Taxes.--Effective October 1, 2008, section
4261 (relating to imposition of tax) is amended--
(1) in subsection (c),
(A) by inserting before the period at the end of
subsection (c)(1) ``, except that the rate of tax
imposed for transportation beginning on and after
October 1, 2008, shall be $6.39'';
(B) by amending subsection (c)(2) to read as
follows:
``(2) Exception for certain transportation.--This
subsection shall not apply to any transportation that consumes
fuel taxed under section 4081(a)(2)(C)(i).'';
(C) by inserting after ``In any case'' in
subsection (c)(3) ``involving transportation beginning
before October 1, 2008, and''; and
(D) by inserting before the period at the end of
subsection (e)(4)(B)(ii) ``, except that the last
nonindexed year is 2009 in the case of the dollar
amounts contained in subsection (c) that apply to
taxable events in a calendar year after 2009.''; and
(2) by amending subsection (j) to insert the following at
the end:
``(3) Extension of taxable period in the case of
international travel facilities.--Notwithstanding paragraph
(1), the taxes imposed by subsection (c) of this section shall
apply to--
``(A) transportation beginning during the period
beginning on March 7, 1997, and ending on September 30,
2017; and
``(B) amounts paid during such period for
transportation beginning after such period.''.
SEC. 904. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE
AUTHORITY.
(a) In General.--Paragraph (1) of section 9502(d) of the Internal
Revenue Code of 1986 (relating to expenditures from Airport and Airway
Trust Fund) is amended--
(1) by striking ``October 1, 2007'' and inserting ``October
1, 2017''; and
(2) by inserting before the semicolon at the end of
subparagraph (A) the following: ``, or the Next Generation Air
Transportation System Financing Reform Act of 2007''.
(b) Conforming Amendment.--Paragraph (2) of section 9502(f) of the
Internal Revenue Code of 1986 is amended by striking ``October 1,
2007'' and inserting ``October 1, 2017''.
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