Aviation Investment and Modernization Act of 2008

        [Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[S. 2972 Placed on Calendar Senate (PCS)]

Calendar No. 726
110th CONGRESS
2d Session
S. 2972

To reauthorize and modernize the Federal Aviation Administration.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 2, 2008

Mrs. Hutchison (for herself and Mr. Stevens) introduced the following
bill; which was read the first time

May 6, 2008

Read the second time and placed on the calendar

_______________________________________________________________________

A BILL

To reauthorize and modernize the Federal Aviation Administration.

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 ``Aviation
Investment and Modernization Act of 2008''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Effective date.
TITLE I--AUTHORIZATIONS AND FINANCING

Sec. 101. Operations.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. Research and development.
Sec. 104. Airport planning and development and noise compatibility
planning and programs.
Sec. 105. Other aviation programs.
Sec. 106. Delineation of next generation air transportation system
projects.
Sec. 107. Funding for administrative expenses for airport programs.
TITLE II--AIRPORT IMPROVEMENTS

Sec. 201. Reform of passenger facility charge authority.
Sec. 202. Passenger facility charge pilot program.
Sec. 203. Amendments to grant assurances.
Sec. 204. Government share of project costs.
Sec. 205. Amendments to allowable costs.
Sec. 206. Sale of private airport to public sponsor.
Sec. 207. Pilot program for airport takeover of air navigation
facilities.
Sec. 208. Government share of certain air project costs.
Sec. 209. Miscellaneous amendments.
Sec. 210. State block grant program.
Sec. 211. Airport funding of special studies or reviews.
Sec. 212. Grant eligibility for assessment of flight procedures.
Sec. 213. Safety-critical airports.
Sec. 214. Expanded passenger facility charge eligibility for noise
compatibility projects.
Sec. 215. Environmental mitigation demonstration pilot program.
Sec. 216. Allowable project costs for airport development program.
Sec. 217. Glycol recovery vehicles.
Sec. 218. Research improvement for aircraft.
TITLE III--FAA ORGANIZATION AND REFORM

Sec. 301. Air Traffic Control Modernization Oversight Board.
Sec. 302. ADS-B support pilot program.
Sec. 303. Facilitation of next generation air traffic services.
Sec. 304. Clarification of authority to enter into reimbursable
agreements.
Sec. 305. Clarification to acquisition reform authority.
Sec. 306. Assistance to other aviation authorities.
Sec. 307. Presidential rank award program.
Sec. 308. Next generation facilities needs assessment.
Sec. 309. Next generation air transportation system planning office.
Sec. 310. Definition of air navigation facility.
Sec. 311. Improved management of property inventory.
Sec. 312. Educational requirements.
Sec. 313. FAA personnel management system.
Sec. 314. Rulemaking and report on ADS-B implementation.
Sec. 315. FAA task force on air traffic control facility conditions.
Sec. 316. State ADS-B equipage bank pilot program.
TITLE IV--AIRLINE SERVICE AND SMALL COMMUNITY AIR SERVICE IMPROVEMENTS

Sec. 401. Airline contingency service requirements.
Sec. 402. Publication of customer service data and flight delay
history.
Sec. 403. EAS connectivity program.
Sec. 404. Extension of final order establishing mileage adjustment
eligibility.
Sec. 405. EAS contract guidelines.
Sec. 406. Conversion of former EAS airports.
Sec. 407. EAS reform.
Sec. 408. Clarification of air carrier fee disputes.
Sec. 409. Small community air service.
Sec. 410. Contract tower program.
Sec. 411. Airfares for members of the armed forces.
Sec. 412. Expansion of DOT airline consumer complaint investigations.
Sec. 413. EAS marketing.
Sec. 414. Extraperimetal and intraperimetal slots at Ronald Reagan
Washington National Airport.
Sec. 415. Establishment of advisory committee for aviation consumer
protection.
Sec. 416. Rural aviation improvement.
TITLE V--AVIATION SAFETY

Sec. 501. Runway safety equipment plan.
Sec. 502. Aircraft fuel tank safety improvement.
Sec. 503. Judicial review of denial of airman certificates.
Sec. 504. Release of data relating to abandoned type certificates and
supplemental type certificates.
Sec. 505. Design organization certificates.
Sec. 506. FAA access to criminal history records or database systems.
Sec. 507. Flight crew fatigue.
Sec. 508. Increasing safety for helicopter emergency medical service
operators.
Sec. 509. Cabin crew communication.
Sec. 510. Clarification of memorandum of understanding with osha.
Sec. 511. Acceleration of development and implementation of required
navigation performance approach procedures.
Sec. 512. Enhanced safety for airport operations.
Sec. 513. Improved safety information.
Sec. 514. Voluntary disclosure reporting process improvements.
Sec. 515. Procedural improvements for inspections.
Sec. 516. Independent review of safety issues.
Sec. 517. National review team.
Sec. 518. FAA Academy improvements.
Sec. 519. Reduction of runway incursions and operational errors.
TITLE VI--AVIATION RESEARCH

Sec. 601. Airport cooperative research program.
Sec. 602. Reduction of noise, emissions, and energy consumption from
civilian aircraft.
Sec. 603. Production of clean coal fuel technology for civilian
aircraft.
Sec. 604. Advisory committee on future of aeronautics.
Sec. 605. Research program to improve airfield pavements.
Sec. 606. Wake turbulence, volcanic ash, and weather research.
Sec. 607. Incorporation of unmanned aerial systems into FAA plans and
policies.
Sec. 608. Reauthorization of center of excellence in applied research
and training in the use of advanced
materials in transport aircraft.
Sec. 609. Pilot program for zero emission airport vehicles.
Sec. 610. Reduction of emissions from airport power sources.
TITLE VII--MISCELLANEOUS

Sec. 701. General authority.
Sec. 702. Human intervention management study.
Sec. 703. Airport program modifications.
Sec. 704. Miscellaneous program extensions.
Sec. 705. Extension of competitive access reports.
Sec. 706. Update on overflights.
Sec. 707. Technical corrections.
Sec. 708. FAA technical training and staffing.
Sec. 709. Commercial air tour operators in national parks.
Sec. 710. Phaseout of stage 1 and 2 aircraft.
Sec. 711. Weight restrictions at teterboro airport.
Sec. 712. Pilot program for redevelopment of airport properties.
Sec. 713. Air carriage of international mail.
Sec. 714. Transporting musical instruments.
Sec. 715. Recycling plans for airports.
Sec. 716. Consumer information pamphlet.
TITLE VIII--AMERICAN INFRASTRUCTURE INVESTMENT AND IMPROVEMENT

Sec. 800. Short title, etc.
Sec. 801. Extension of taxes funding Airport and Airway Trust Fund.
Sec. 802. Extension of Airport and Airway Trust Fund expenditure
authority.
Sec. 803. Modification of excise tax on kerosene used in aviation .
Sec. 804. Air Traffic Control System Modernization Account.
Sec. 805. Treatment of fractional aircraft ownership programs.
Sec. 806. Termination of exemption for small aircraft on nonestablished
lines.
Sec. 807. Transparency in passenger tax disclosures.

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 take effect on the date of enactment.

TITLE I--AUTHORIZATIONS AND FINANCING

SEC. 101. OPERATIONS.

(a) In General.--Section 106(k)(1) is amended by striking
subparagraphs (A) through (D) and inserting the following:
``(A) $8,726,000,000 for fiscal year 2008;
``(B) $8,990,000,000 for fiscal year 2009;
``(C) $9,330,000,000 for fiscal year 2010; and
``(D) $9,620,000,000 for fiscal year 2011.''.
(b) Safety Project.--Section 106(k)(2)(F) is amended by striking
``2007'' and inserting ``2011''.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

Section 48101(a) is amended by striking paragraphs (1) through (4)
and inserting the following:
``(1) $2,572,000,000 for fiscal year 2008;
``(2) $2,923,000,000 for fiscal year 2009, of which
$400,000,000 is derived from the Air Traffic Control System
Modernization Account of the Airport and Airways Trust Fund;
``(3) $3,079,000,000 for fiscal year 2010, of which
$400,000,000 is derived from the Air Traffic Control System
Modernization Account of the Airport and Airways Trust Fund;
and
``(4) $3,317,000,000 for fiscal year 2011, of which
$400,000,000 is derived from the Air Traffic Control System
Modernization Account of the Airport and Airways Trust Fund.''.

SEC. 103. RESEARCH AND DEVELOPMENT.

Section 48102 is amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--Not more than 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 conducting civil aviation
research and development under sections 44504, 44505, 44507, 44509, and
44511 through 44513 of this title:
``(1) $140,000,000 for fiscal year 2008.
``(2) $191,000,000 for fiscal year 2009.
``(3) $191,000,000 for fiscal year 2010.
``(4) $194,000,000 for fiscal year 2011.'';
(2) by striking subsections (c) through (h); and
(3) by adding at the end the following:
``(c) Research Grants Program Involving Undergraduate Students.--
The Administrator of the Federal Aviation Administration shall
establish a program to utilize undergraduate and technical colleges,
including Historically Black Colleges and Universities, Hispanic
Serving Institutions, tribally controlled colleges and universities,
and Alaska Native and Native Hawaiian serving institutions in research
on subjects of relevance to the Federal Aviation Administration. Grants
may be awarded under this subsection for--
``(1) research projects to be carried out at primarily
undergraduate institutions and technical colleges;
``(2) research projects that combine research at primarily
undergraduate institutions and technical colleges with other
research supported by the Federal Aviation Administration;
``(3) research on future training requirements on projected
changes in regulatory requirements for aircraft maintenance and
power plant licensees; or
``(4) research on the impact of new technologies and
procedures, particularly those related to aircraft flight deck
and air traffic management functions, and on training
requirements for pilots and air traffic controllers.''.

SEC. 104. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY
PLANNING AND PROGRAMS.

Section 48103 is amended by striking paragraphs (1) through (4) and
inserting the following:
``(1) $3,800,000,000 for fiscal year 2008;
``(2) $3,900,000,000 for fiscal year 2009;
``(3) $4,000,000,000 for fiscal year 2010; and
``(4) $4,100,000,000 for fiscal year 2011.''.

SEC. 105. OTHER AVIATION PROGRAMS.

Section 48114 is amended--
(1) by striking ``2007'' in subsection (a)(1)(A) and
inserting ``2011'';
(2) by striking ``2007,'' in subsection (a)(2) and
inserting ``2011,''; and
(3) by striking ``2007'' in subsection (c)(2) and inserting
``2011''.

SEC. 106. DELINEATION OF NEXT GENERATION AIR TRANSPORTATION SYSTEM
PROJECTS.

Section 44501(b) is amended--
(1) by striking ``and'' after the semicolon in paragraph
(3);
(2) by striking ``defense.'' in paragraph (4) and inserting
``defense; and''; and
(3) by adding at the end thereof the following:
``(5) a list of projects that are part of the Next
Generation Air Transportation System and do not have as a
primary purpose to operate or maintain the current air traffic
control system.''.

SEC. 107. FUNDING FOR ADMINISTRATIVE EXPENSES FOR AIRPORT PROGRAMS.

(a) In General.--Section 48105 is amended to read as follows:
``Sec. 48105. Airport programs administrative expenses
``Of the amount made available under section 48103 of this title,
the following may be available for administrative expenses relating to
the Airport Improvement Program, passenger facility charge 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;
``(3) for fiscal year 2010, $89,000,000; and
``(4) for fiscal year 2011, $93,000,000.''.
(b) Conforming Amendment.--The chapter analysis for chapter 481 is
amended by striking the item relating to section 48105 and inserting
the following:

``48105. Airport programs administrative expenses.''.

TITLE II--AIRPORT IMPROVEMENTS

SEC. 201. REFORM OF PASSENGER FACILITY CHARGE AUTHORITY.

(a) Passenger Facility Charge Streamlining.--Section 40117(c) is
amended to read as follows:
``(c) Procedural Requirements for Imposition of Passenger Facility
Charge.--
``(1) In general.--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 charge
program, including--
``(A) the total amount of program revenue held by
the agency at the beginning of the 12 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 12-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 12-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 copy 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), (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 shall 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) that the notice include a detailed
financial plan for the proposed project; and
``(iv) that the notice include 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
subparagraph, 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 shall 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
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, 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 subparagraph (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 increased passenger facility
charge or intermodal ground access project.--
``(A) An eligible agency may not collect or use a
passenger facility charge to finance an intermodal
ground access project, or increase a passenger facility
charge, 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 or to increase a passenger facility
charge. 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
or the increased passenger facility charge. 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.''.
(b) Conforming Amendments.--
(1) References.--
(A) Section 40117(a) is amended--
(i) by striking ``fee'' in the heading for
paragraph (5) and inserting ``charge''; and
(ii) by striking ``fee'' each place it
appears in paragraphs (5) and (6) and inserting
``charge''.
(B) Subsections (b), and subsections (d) through
(m), of section 40117 are amended--
(i) by striking ``fee'' or ``fees'' each
place either appears and inserting ``charge''
or ``charges'', respectively; and
(ii) by striking ``Fee'' in the subsection
caption for subsection (l), and ``Fees'' in the
subsection captions for subsections (e) and
(m), and inserting ``Charge'' and ``Charges'',
respectively.
(C) The caption for section 40117 is amended to
read as follows:
``Sec. 40117. Passenger facility charges''.
(D) The chapter analysis for chapter 401 is amended
by striking the item relating to section 40117 and
inserting the following:

``40117. Passenger facility charges.''.
(2) Limitations on approving applications.--Section
40117(d) is amended--
(A) 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) by striking ``specific'' in paragraph (1);
(C) by striking paragraph (2) and inserting the
following:
``(2) the project is an eligible airport-related project;
and'';
(D) by striking ``each of the specific projects;
and'' in paragraph (3) and inserting ``the project.'';
and
(E) by striking paragraph (4).
(3) Limitations on imposing charges.--Section 40117(e)(1)
is amended to read as follows: ``(1) 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 by striking ``long-term''.
(5) Compliance.--Section 40117(h) is amended--
(A) by redesignating paragraph (3) as paragraph
(4); and
(B) by inserting after paragraph (2) the following:
``(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.''.
(6) Pilot program for pfc at nonhub airports.--Section
40117(l) is amended--
(A) by striking ``(c)(2)'' in paragraph (2) and
inserting ``(c)(3)''; and
(B) by striking ``date that is 3 years after the
date of issuance of regulations to carry out this
subsection.'' in paragraph (7) and inserting ``date of
issuance of regulations to carry out subsection (c) of
this section, as amended by the Aviation Investment and
Modernization Act of 2008.''.
(7) Prohibition on approving pfc applications for airport
revenue diversion.--Section 47111(e) is amended by striking
``sponsor'' the second place it appears in the first sentence
and all that follows and inserting ``sponsor. A sponsor shall
not propose collection or use of passenger facility charges for
any new projects under paragraphs (3) through (6) of section
40117(c) unless the Secretary determines that the sponsor has
taken corrective action to address the violation and the
violation no longer exists.''.

SEC. 202. PASSENGER FACILITY CHARGE PILOT PROGRAM.

Section 40117 is amended by adding at the end thereof the
following:
``(n) Alternative Passenger Facility Charge Collection Pilot
Program.--
``(1) In general.--The Secretary shall establish and
conduct a pilot program at not more than 6 airports under which
an eligible agency may impose a passenger facility charge under
this section without regard to the dollar amount limitations
set forth in paragraph (1) or (4) of subsection (b) if the
participating eligible agency meets the requirements of
paragraph (2).
``(2) Collection requirements.--
``(A) Direct collection.--An eligible agency
participating in the pilot program--
``(i) may collect the charge from the
passenger at the facility, via the Internet, or
in any other reasonable manner; but
``(ii) may not require or permit the charge
to be collected by an air carrier or foreign
air carrier for the flight segment.
``(B) PFC collection requirement not to apply.--
Subpart C of part 158 of title 14, Code of Federal
Regulations, does not apply to the collection of the
passenger facility charge imposed by an eligible agency
participating in the pilot program.''.

SEC. 203. AMENDMENTS TO GRANT ASSURANCES.

Section 47107 is amended--
(1) by striking ``made;'' in subsection (a)(16)(D)(ii) 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;'';
(2) by striking ``purpose;'' in subsection (c)(2)(A)(i) and
inserting ``purpose, which includes serving as noise buffer
land;'';
(3) by striking ``paid to the Secretary for deposit in the
Fund if another eligible project does not exist.'' in
subsection (c)(2)(B)(iii) and inserting ``reinvested in another
project at the airport or transferred to another airport as the
Secretary prescribes.''; and
(4) by redesignating paragraph (3) of subsection (c) as
paragraph (4) and inserting after paragraph (2) the following:
``(3) In approving the reinvestment or transfer of proceeds under
paragraph (2)(C)(iii), the Secretary shall give preference, in
descending order, to--
``(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 section 47114, 47115, or 47117
and meets the requirements of this chapter;
``(iv) transfer to the 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. 204. GOVERNMENT SHARE OF PROJECT COSTS.

(a) Federal Share.--Section 47109 is amended--
(1) by striking ``subsection (b) or subsection (c)'' in
subsection (a) and inserting ``subsection (b), (c), or (e)'';
and
(2) 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 95 percent for 2
fiscal years following such change in hub status.''.
(b) Transitioning Airports.--Section 47114(f)(3)(B) is amended by
striking ``year 2004.'' and inserting ``years 2008, 2009, 2010, and
2011.''.

SEC. 205. AMENDMENTS TO ALLOWABLE COSTS.

Section 47110 is amended--
(1) by striking subsection (d) and inserting the following:
``(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) by striking ``facilities, including fuel farms and
hangars,'' in subsection (h) and inserting ``facilities, as
defined by section 47102,''.

SEC. 206. SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR.

Section 47133(b) is amended--
(1) by resetting the text of the subsection as an indented
paragraph 2 ems from the left margin;
(2) by inserting ``(1)'' before ``Subsection''; and
(3) by adding at the end thereof the following:
``(2) In the case of a privately owned airport, subsection
(a) shall not apply 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. 207. 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 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 paragraph (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) Definitions.--In this section:
``(1) Sponsor.--The term `sponsor' has the meaning given
that term in section 40102.
``(2) Terminal area air navigation equipment.--The term
`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.
``(f) 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 chapter analysis for chapter 445 is
amended by inserting after the item relating to section 44517 the
following:

``44518. Pilot program for airport takeover of terminal area air
navigation equipment.''.

SEC. 208. GOVERNMENT SHARE OF CERTAIN AIR PROJECT COSTS.

Notwithstanding section 47109(a) of title 49, United States Code,
the Federal Government's share of allowable project costs for a grant
made in fiscal year 2008, 2009, 2010, or 2011 under chapter 471 of that
title for a project described in paragraph (2) or (3) of that section
shall be 95 percent.

SEC. 209. MISCELLANEOUS AMENDMENTS.

(a) Technical Changes to National Plan of Integrated Airport
Systems.--Section 47103 is amended--
(1) by striking ``each airport to--'' in subsection (a) and
inserting ``the airport system to--'';
(2) by striking ``system in the particular area;'' in
subsection (a)(1) and inserting ``system, including connection
to the surface transportation network; and'';
(3) by striking ``aeronautics; and'' in subsection (a)(2)
and inserting ``aeronautics.'';
(4) by striking subsection (a)(3);
(5) by striking paragraph (2) of subsection (b) and
redesignating paragraph (3) as paragraph (2);
(6) by striking ``operations, Short Takeoff and Landing/
Very Short Takeoff and Landing aircraft operations,'' in
subsection (b)(2), as redesignated, and inserting
``operations''; and
(7) by striking ``status of the'' in subsection (d).
(b) Update Veterans Preference Definition.--Section 47112(c) is
amended--
(1) by striking ``separated from'' in paragraph (1)(B) and
inserting ``discharged or released from active duty in'';
(2) by adding at the end of paragraph (1) 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
(3) by striking ``veterans and'' in paragraph (2) and
inserting ``veterans, Afghanistan-Iraq war veterans, and''.
(c) Annual Report.--Section 47131(a) is amended--
(1) by striking ``April 1'' and inserting ``June 1''; and
(2) by striking paragraphs (1) through (4) and inserting
the following:
``(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''.
(d) Sunset of Program.--Section 47137 is repealed effective
September 30, 2008.
(e) Correction to Emission Credits Provision.--Section 47139 is
amended--
(1) by striking ``47102(3)(F),'' in subsection (a);
(2) by striking ``47102(3)(F),'' in subsection (b);
(3) by striking ``47102(3)(L), or 47140'' in subsection (b)
and inserting ``or 47102(3)(L),'';
(4) by striking ``47103(3)(F), in subsection (b);
(5) by striking ``47102(3)(L), or 47140,'' in subsection
(b) and inserting ``or 47102(3)(L),''.
(f) 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),''.
(g) Airport Capacity Benchmark Reports; Definition of Joint Use
Airport.--Section 47175 is amended--
(1) by striking ``Airport Capacity Benchmark Report 2001.''
in paragraph (2) and inserting ``2001 and 2004 Airport Capacity
Benchmark Reports or of the most recent Benchmark report.'';
and
(2) by adding at the end thereof the following:
``(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.''.
(h) Cargo Airports.--Section 47114(c)(2)(A) is amended by striking
``3.5 percent'' and inserting ``4.0 percent''.
(i) Use of Apportioned Amounts.--Section 47117(e)(1)(A) is
amended--
(1) by striking ``35 percent'' in the first sentence and
inserting ``$300,000,000'';
(2) by striking ``and'' after ``47141,'';
(3) by striking ``et seq.).'' and inserting ``et seq.), and
for water quality mitigation projects to comply with the Act of
June 30, 1948 (33 U.S.C. 1251 et seq.) approved in an
environmental record of decision for an airport development
project under this title.''; and
(4) by striking ``such 35 percent requirement is'' in the
second sentence and inserting ``the requirements of the
preceding sentence are''.
(j) Use of Apportioned Amounts.--An amount apportioned under
section 47114 of title 49, United States Code, or made available under
section 47115 of that title, to the sponsor of a reliever airport the
crosswind runway of which was closed as a result of a Record of
Decision dated September 3, 2004, shall be available for project costs
associated with the establishment of a new crosswind runway.
(k) Use of Previous Fiscal Year's Apportionment.--Section
47114(c)(1) is amended--
(1) by striking ``airport due to an employment action,
natural disaster, or other event unrelated to the demand for
air transportation at the affected airport.'' in subparagraph
(E)(iii) and inserting ``airport--
``(I) if it is included in the essential air
service program in the calendar year in which the
passenger boardings fall below 9,700;
``(II) if at the airport the total passenger
boardings from large certificated air carriers (as
defined in part 241 of title 14, Code of Federal
Regulations) conducting scheduled plus nonscheduled
service totals 10,000 or more in the calendar year in
which the airport does not meet the criteria for a
primary airport under section 47102 of this title; or
``(III) if the documented interruption to scheduled
service at the airport was equal to 4 percent of the
scheduled flights in calendar year 2006, exclusive of
cancellations due to severe weather conditions, and the
airport is served by a single air carrier.'';
(2) by redesignating subparagraphs (F) and (G) as (G) and
(H), respectively, and inserting after subparagraph (E) the
following:
``(F) For fiscal years 2009 through 2012, with regard to an
airport that meets the criteria described in paragraph
(E)(iii), if the calendar year passenger boardings for the
calculation of apportionments under this section fall below
10,000 passenger boardings, the Secretary may use the passenger
boardings for the last fiscal year in which passenger boardings
exceeded 10,000 for calculating apportionments.''.
(l) Section 47102(3) is amended 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, Code of
Federal Regulations.''.
(m) Section 47115(g)(1) is amended by striking ``of--'' and all
that follows and inserting ``of $520,000,000. The amount credited is
exclusive of amounts that have been apportioned in a prior fiscal year
under section 47114 of this title and that remain available for
obligation.''.
(n) Section 47114(c) is amended by adding at the end thereof the
following:
``(3) Airports served by large certificated carriers.--
``(A) Apportionment.--The Secretary shall apportion
to the sponsor of an airport that received scheduled
air service from a large certificated air carrier (as
defined in part 241 of title 14, Code of Federal
Regulations) an amount equal to the minimum
apportionment specified in paragraph (1) of this
subsection.
``(B) Limitation.--The apportionment under
subparagraph (A) shall be made available to an airport
sponsor only if--
``(i) the large certificated air carrier
began scheduled air service at the airport in
May 2006 and ceased scheduled air service at
the airport in October 2006; and
``(ii) the Secretary determines that the
airport had more than 10,000 passenger
boardings in the preceding calendar year, based
on data submitted to the Secretary under part
241 of title 14, Code of Federal
Regulations.''.
(o) Subparagraph (H) of section 47114(c)(1), as redesignated by
subsection (k)(2) of this section, is amended--
(1) by striking ``fiscal year 2006'' in the subparagraph
heading and inserting ``fiscal years 2008 through 2011.--'';
(2) by striking ``fiscal year 2006'' and inserting ``each
of fiscal years 2008 through 2011''; and
(3) by striking clause (i) and inserting the following:
``(i) the average annual passenger
boardings at the airport for calendar years
2004 through 2006 were below 10,000 per
year;''; and
(4) by striking ``2000 or 2001;'' in clause (ii) and
inserting ``2003''.
(p) Section 47114 is amended by adding at the end thereof the
following:
``(g) Approach Lighting System.--Any amount apportioned for airport
03-02-0133 under the National Plan of Integrated Airport Systems may be
utilized in any fiscal year for approach lighting systems including a
medium intensity approach lighting system with runway alignment
lights.''.

SEC. 210. STATE BLOCK GRANT PROGRAM.

Section 47128 is amended--
(1) by striking ``regulations'' each place it appears in
subsection (a) and inserting ``guidance'';
(2) by striking ``grant;'' in subsection (b)(4) and
inserting ``grant, including Federal environmental requirements
or an agreed upon equivalent;'';
(3) by redesignating subsection (c) as subsection (d) and
inserting after subsection (b) the following:
``(c) Project 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. The
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.''; and
(4) by adding at the end the following:
``(e) Pilot Program.--The Secretary shall establish a pilot program
for up to 3 States that do not participate in the program established
under subsection (a) that is consistent with the program under
subsection (a).''.

SEC. 211. 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. 212. GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT PROCEDURES.

Section 47504 is amended by adding at the end the following:
``(e) Grants for Assessment of Flight Procedures.--
``(1) The Secretary is authorized in accordance with
subsection (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. 213. SAFETY-CRITICAL AIRPORTS.

Section 47118(c) is amended--
(1) by striking ``or'' after the semicolon in paragraph
(1);
(2) by striking ``delays.'' in paragraph (2) and inserting
``delays; or''; and
(3) by adding at the end the following:
``(3) be critical to the safety of commercial, military, or
general aviation in trans-oceanic flights.''.

SEC. 214. EXPANDED PASSENGER FACILITY CHARGE ELIGIBILITY FOR NOISE
COMPATIBILITY PROJECTS.

Section 40117(b) is amended by adding at the end the following:
``(7) Noise mitigation for certain schools.--
``(A) In general.--In addition to the uses
specified in paragraphs (1), (4), and (6), the
Secretary may authorize a passenger facility charge
imposed under paragraph (1) or (4) at a large hub
airport that is the subject of an amended judgment and
final order in condemnation filed on January 7, 1980,
by the Superior Court of the State of California for
the county of Los Angeles, to be used for a project to
carry out noise mitigation for a building, or for the
replacement of a relocatable building with a permanent
building, in the noise impacted area surrounding the
airport at which such building is used primarily for
educational purposes, notwithstanding the air easement
granted or any terms to the contrary in such judgment
and final order, if--
``(i) the Secretary determines that the
building is adversely affected by airport
noise;
``(ii) the building is owned or chartered
by the school district that was the plaintiff
in case number 986,442 or 986,446, which was
resolved by such judgment and final order;
``(iii) the project is for a school
identified in 1 of the settlement agreements
effective February 16, 2005, between the
airport and each of the school districts;
``(iv) in the case of a project to replace
a relocatable building with a permanent
building, the eligible project costs are
limited to the actual structural construction
costs necessary to mitigate aircraft noise in
instructional classrooms to an interior noise
level meeting current standards of the Federal
Aviation Administration; and
``(v) the project otherwise meets the
requirements of this section for authorization
of a passenger facility charge.
``(B) Eligible project costs.--In subparagraph
(A)(iv), the term `eligible project costs' means the
difference between the cost of standard school
construction and the cost of construction necessary to
mitigate classroom noise to the standards of the
Federal Aviation Administration.''.

SEC. 215. ENVIRONMENTAL MITIGATION DEMONSTRATION PILOT PROGRAM.

(a) Pilot Program.--Subchapter I of chapter 471 is amended by
adding at the end thereof the following:
``Sec. 47143. Environmental mitigation demonstration pilot program
``(a) In General.--The Secretary of Transportation shall carry out
a pilot program involving not more than 6 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.
``(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) Federal 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) Eligible consortium.--The term `eligible consortium'
means a consortium that comprises 2 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.
``(D) Federal laboratories.
``(2) Environmental mitigation demonstration project.--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 chapter analysis for chapter 471 is
amended by inserting after the item relating to section 47142 the
following:

``47143. Environmental mitigation demonstration pilot program.''.

SEC. 216. ALLOWABLE PROJECT COSTS FOR AIRPORT DEVELOPMENT PROGRAM.

Section 47110(c) of title 49, United States Code, is amended--
(1) by striking ``; or'' in paragraph (1) and inserting a
semicolon;
(2) by striking ``project.'' in paragraph (2) and inserting
``project; or''; and
(3) by adding at the end the following:
``(3) necessarily incurred in anticipation of severe
weather.''.

SEC. 217. GLYCOL RECOVERY VEHICLES.

Section 47102(3)(G) is amended by inserting ``including acquiring
glycol recovery vehicles,'' after ``aircraft,''.

SEC. 218. RESEARCH IMPROVEMENT FOR AIRCRAFT.

Section 44504(b) is amended--
(1) by striking ``and'' after the semicolon in paragraph
(6);
(2) by striking ``aircraft.'' in paragraph (7) and
inserting ``aircraft; and''; and
(3) by adding at the end thereof the following:
``(8) to conduct research to support programs designed to
reduce gases and particulates emitted.''.

TITLE III--FAA ORGANIZATION AND REFORM

SEC. 301. AIR TRAFFIC CONTROL MODERNIZATION OVERSIGHT BOARD.

Section 106(p) is amended to read as follows:
``(p) Air Traffic Control Modernization Oversight Board.--
``(1) Establishment.--Within 90 days after the date of
enactment of the Aviation Investment and Modernization Act of
2008, the Secretary shall establish and appoint the members of
an advisory Board which shall be known as the Air Traffic
Control Modernization Oversight Board.
``(2) Membership.--The Board shall be comprised of 7
members, who shall consist of--
``(A) the Administrator of the Federal Aviation
Administration and a representative from the Department
of Defense;
``(B) 1 member who shall have a fiduciary
responsibility to represent the public interest; and
``(C) 4 members representing aviation interests, as
follows:
``(i) 1 representative that is the chief
executive officer of an airport.
``(ii) 1 representative that is the chief
executive officer of a passenger or cargo air
carrier.
``(iii) 1 representative of a labor
organization representing employees at the
Federal Aviation Administration that are
involved with the operation, maintenance or
procurement of the air traffic control system.
``(iv) 1 representative with extensive
operational experience in the general aviation
community.
``(3) Appointment and qualifications.--
``(A) Members of the Board appointed under
paragraphs (2)(B) and (2)(C) shall be appointed by the
President, by and with the advice and consent of the
Senate.
``(B) Members of the Board appointed under
paragraph (2)(B) shall be citizens of the United States
and 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--
``(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 modernization 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) approve procurements of air traffic
control equipment in excess of $100,000,000;
``(v) approve by July 31 of each year the
Administrator's budget request for facilities
and equipment prior to its submission to the
Office of Management and budget, including
which programs are proposed to be funded from
the Air Traffic control system Modernization
Account of the Airport and Airway Trust Fund;
``(vi) approve the Federal Aviation
Administration's Capital Investment Plan prior
to its submission to the Congress;
``(vii) annually approve the Operational
Evolution Plan;
``(viii) approve the Administrator's
selection of a Chief Operating Officer for the
Air Traffic Organization and on the appointment
and compensation of its managers; and
``(ix) approve the selection of the head of
the Joint Planning Development Office.
``(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,
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 paragraph (2)(B) and (2)(C) shall be
appointed for a term of 4 years.
``(B) Reappointment.--No individual may be
appointed to the Board for more than 8 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 a term
of 4 years.
``(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
President for cause.
``(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 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; and
``(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) Compensaton.--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 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) Board resources.--From resources otherwise
available to the Administrator, the Chairman shall
appoint such staff to assist the board and provide
impartial analysis, and the Administrator shall make
available to the Board such 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 duly appointed shall constitute a
quorum. A majority vote of members present and voting
shall be required for the Committee to take action.
``(7) Air traffic control system defined.--In this
subsection, the term `air traffic control system' has the
meaning given that term in section 40102(a).''.

SEC. 302. ADS-B SUPPORT PILOT PROGRAM.

(a) In General.--Chapter 445, as amended by section 207, is amended
by adding at the end the following:
``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 compliant
Automatic Dependent 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 the 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 10 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.--The term `ADS-B ground
station' means electronic equipment that provides for ADS-B
reception and broadcast services.
``(2) Eligible sponsor.--The term `eligible sponsor' means
a State or any consortium of 2 or more State or local
governments meeting the definition of a sponsor under section
47102 of this title.''.
(b) Conforming Amendment.--The chapter analysis for chapter 445 is
amended by inserting after the item relating to section 44518 the
following:

``44519. ADS-B support pilot program.''.

SEC. 303. FACILITATION OF NEXT GENERATION AIR TRAFFIC SERVICES.

Section 106(l) is amended by adding at the end the following:
``(7) Air Traffic Services.--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. 304. CLARIFICATION OF AUTHORITY TO ENTER INTO REIMBURSABLE
AGREEMENTS.

Section 106(m) is amended by striking ``without'' in the last
sentence and inserting ``with or without''.

SEC. 305. CLARIFICATION TO ACQUISITION REFORM AUTHORITY.

Section 40110(c) is amended--
(1) by inserting ``and'' after the semicolon in paragraph
(3);
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as paragraph (4).

SEC. 306. ASSISTANCE TO OTHER AVIATION AUTHORITIES.

Section 40113(e) is amended--
(1) by inserting ``(whether public or private)'' in
paragraph (1) after ``authorities'';
(2) by striking ``safety.'' in paragraph (1) and inserting
``safety 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
(3) by striking ``appropriation from which expenses were
incurred in providing such services.'' in paragraph (3) and
inserting ``appropriation current when the expenditures are or
were paid, or the appropriation current when the amount is
received.''.

SEC. 307. PRESIDENTIAL RANK AWARD PROGRAM.

Section 40122(g)(2) is amended--
(1) by striking ``and'' after the semicolon in subparagraph
(G);
(2) by striking ``Board.'' in subparagraph (H) and
inserting ``Board;''; and
(3) by inserting at the end the following new subparagraph:
``(I) subsections (b), (c), and (d) of section 4507
(relating to Meritorious Executive or Distinguished
Executive rank awards), and section subsections (b) and
(c) of section 4507a (relating to Meritorious Senior
Professional or Distinguished Senior Professional rank-
awards), except that--
``(i) for purposes of applying such
provisions to the personnel management system--
``(I) the term `agency' means the
Department of Transportation;
``(II) the term `senior executive'
means an Federal Aviation
Administration executive;
``(III) the term `career appointee'
means an Federal Aviation
Administration career executive; and
``(IV) the term `senior career
employee' means an Federal Aviation
Administration career senior
professional;
``(ii) 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; and
``(iii) 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. 308. NEXT GENERATION FACILITIES NEEDS ASSESSMENT.

(a) FAA Criteria for Facilities Realignment.--Within 9 months after
the date of enactment of this Act, the Administrator of the Federal
Aviation Administration, after providing an opportunity for public
comment, shall publish final criteria to be used in making the
Administrator's recommendations for the realignment of services and
facilities to assist in the transition to next generation facilities
and help reduce capital, operating, maintenance, and administrative
costs with no adverse effect on safety.
(b) Realignment Recommendations.--Within 9 months after publication
of the criteria, the Administrator shall publish a list of the services
and facilities that the Administrator recommends for realignment,
including a justification for each recommendation, and a description of
the costs and savings of such transition.
(c) Realignment Defined.--As used in this section, the term
``realignment'' includes any action which relocates or reorganizes
functions, services, and personnel positions but does not include a
reduction in personnel resulting from workload adjustments.
(d) Study by Board.--The Air Traffic Control Modernization
Oversight Board established by section 106(p) of title 49, United
States Code, shall study the Administrator's recommendations for
realignment and the opportunities, risks, and benefits of realigning
services and facilities of the Federal Aviation Administration to help
reduce capital, operating, maintenance, and administrative costs with
no adverse effect on safety.
(e) Review and Recommendations.--
(1) After receiving the recommendations from the
Administrator pursuant to subsection (b), the Board shall
provide 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
Board shall make its independent recommendations for
realignment of aviation services or facilities and submit its
recommendations in a report to the President, the Senate
Committee on Commerce, Science, and Transportation, and the
House of Representatives Committee on Transportation and
Infrastructure.
(3) The Board shall explain and justify in its report any
recommendation made by the Board that is different from the
recommendations made by the Administrator pursuant to
subsection (b).
(4) The Administrator may not consolidate any additional
approach control facilities into the Southern California
TRACON, or the Memphis TRACON until the Board's recommendations
are completed.

SEC. 309. NEXT GENERATION AIR TRANSPORTATION SYSTEM PLANNING OFFICE.

(a) Improved Cooperation and Coordination among Participating
Agencies.--Section 709 of the Vision 100--Century of Aviation
Reauthorization Act (49 U.S.C. 40101 note) is amended--
(1) by inserting ``(A)'' after ``(3)'' in subsection
(a)(3);
(2) by inserting after subsection (a)(3) the following:
``(B) The Administrator of the Federal Aviation
Administration, the Secretary of Defense, the
Administrator of the National Aeronautics and Space
Administration, the Secretary of Commerce, the
Secretary of Homeland Security, and the head of any
other Department or Federal agency from which the
Secretary of Transportation requests assistance under
subparagraph (A) shall designate an implementation
office to be responsible for--
``(i) carrying out the Department or
agency's Next Generation Air Transportation
System implementation activities with the
Office; and
``(ii) liaison and coordination with other
Departments and agencies involved in Next
Generation Air Transportation System
activities; and
``(iii) managing all Next Generation Air
Transportation System programs for the
Department or agency, including necessary
budgetary and staff resources, including, for
the Federal Aviation Administration, those
projects described in section 44501(b)(5) of
title 49, United States Code).
``(C) The head of any such Department or agency
shall ensure that--
``(i) the Department's or agency's Next
Generation Air Transportation System
responsibilities are clearly communicated to
the designated office; and
``(ii) the performance of supervisory
personnel in that office in carrying out the
Department's or agency's Next Generation Air
Transportation System responsibilities is
reflected in their annual performance
evaluations and compensation decisions.
``(D)(i) Within 6 months after the date of
enactment of the Aviation Investment and Modernization
Act of 2008, the head of each such Department or agency
shall execute a memorandum of understanding with the
Office and with the other Departments and agencies
participating in the Next Generation Air Transportation
System project that--
``(I) describes the respective
responsibilities of each such Department and
agency, including budgetary commitments; and
``(II) the budgetary and staff resources
committed to the project.
``(ii) The memorandum shall be revised as necessary
to reflect any changes in such responsibilities or
commitments and be reflected in each Department or
agency's budget request.'';
(3) by adding at the end of subsection (a) 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.'';
(4) by striking ``beyond those currently included in the
Federal Aviation Administration's Operational Evolution Plan''
in subsection (b);
(5) by striking ``research and development roadmap'' in
subsection (b)(3) and inserting ``implementation plan'';
(6) by striking ``and'' after the semicolon in subsection
(b)(3)(B);
(7) by inserting after subsection (b)(3)(C) the following:
``(D) a schedule of rulemakings required to issue
regulations and guidelines for implementation of the
Next Generation Air Transportation System within a
timeframe consistent with the integrated plan; and'';
(8) by inserting ``and key technologies'' after
``concepts'' in subsection (b)(4);
(9) by striking ``users'' in subsection (b)(4) and
inserting ``users, an implementation plan,'';
(10) by adding at the end of subsection (b) the following:
``Within 6 months after the date of enactment of the Aviation
Investment and Modernization Act of 2008, the Administrator shall
develop the implementation plan described in paragraph (3) of this
subsection and shall update it annually thereafter.''; and
(11) by striking ``2010.'' in subsection (e) and inserting
``2011.''.
(b) Senior Policy Committee Meetings.--Section 710(a) of such Act
(49 U.S.C. 40101 note) is amended by striking ``Secretary.'' and
inserting ``Secretary and shall meet at least once each quarter.''.

SEC. 310. DEFINITION OF AIR NAVIGATION FACILITY.

Section 40102(a)(4) is amended--
(1) by striking subparagraph (B) and inserting the
following:
``(B) runway lighting and airport surface visual
and other navigation aids;'';
(2) by striking ``weather information, signaling, radio-
directional finding, or radio or other electromagnetic
communication; and'' in subparagraph (C) 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) by striking ``another structure'' in subparagraph (D)
and inserting ``any structure or equipment'';
(4) by striking ``aircraft.'' in subparagraph (D) and
inserting ``aircraft; and''; and
(5) by adding at the end the following:
``(E) buildings, equipment and systems dedicated to
the National Airspace System.''.

SEC. 311. 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. 312. EDUCATIONAL REQUIREMENTS.

The Administrator of the Federal Aviation Administration shall make
payments to the Department of Defense for the education of dependent
children of those Federal Aviation Administration employees in Puerto
Rico and Guam as they are subject to transfer by policy and practice
and meet the eligibility requirements of section 2164(c) of title 10,
United States Code.

SEC. 313. FAA PERSONNEL MANAGEMENT SYSTEM.

Section 40122(a)(2) is amended to read as follows:
``(2) Dispute resolution.--
``(A) Mediation.--If the Administrator does not
reach an agreement under paragraph (1) or subsection
(g)(2)(C) with the exclusive bargaining
representatives, the services of the Federal Mediation
and Conciliation Service shall be used to attempt to
reach such agreement in accordance with part 1425 of
title 29, Code of Federal Regulations. The
Administrator and bargaining representatives may by
mutual agreement adopt procedures for the resolution of
disputes or impasses arising in the negotiation of a
collective-bargaining agreement.
``(B) Binding arbitration.--If the services of the
Federal Mediation and Conciliation Service under
subparagraph (A) does not lead to an agreement, the
Administrator and the bargaining representatives shall
submit their issues in controversy to the Federal
Service Impasses Panel in accordance with section 7119
of title 5. The Panel shall assist the parties in
resolving the impasse by asserting jurisdiction and
ordering binding arbitration by a private arbitration
board consisting of 3 members in accordance with
section 2471.6(a)(2)(ii) of title 5, Code of Federal
Regulations. The executive director of the Panel shall
request a list of not less than 15 names of arbitrators
with Federal sector experience from the director of the
Federal Mediation and Conciliation Service to be
provided to the Administrator and the bargaining
representatives. Within 10 days after receiving the
list, the parties shall each select 1 person. The 2
arbitrators shall then select a third person from the
list within 7 days. If the 2 arbitrators are unable to
agree on the third person, the parties shall select the
third person by alternately striking names from the
list until only 1 name remains. If the parties do not
agree on the framing of the issues to be submitted, the
arbitration board shall frame the issues. The
arbitration board shall give the parties a full and
fair hearing, including an opportunity to present
evidence in support of their claims, and an opportunity
to present their case in person, by counsel, or by
other representative as they may elect. Decisions of
the arbitration board shall be conclusive and binding
upon the parties. The arbitration board shall render
its decision within 90 days after its appointment. The
Administrator and the bargaining representative shall
share costs of the arbitration equally. The arbitration
board shall take into consideration the effect of its
arbitration decisions on the Federal Aviation
Administration's ability to attract and retain a
qualified workforce and the Federal Aviation
Administration's budget.
``(C) Effect.--Upon reaching a voluntary agreement
or at the conclusion of the binding arbitration under
subparagraph (B) above, the final agreement, except for
those matters decided by the arbitration board, shall
be subject to ratification by the exclusive
representative, if so requested by the exclusive
representative, and approval by the head of the agency
in accordance with subsection (g)(2)(C).
``(D) Enforcement.--Enforcement of the provisions
of this paragraph, and any agreement hereunder, shall
be in the United States District Court for the District
of Columbia.''.

SEC. 314. RULEMAKING AND REPORT ON ADS-B IMPLEMENTATION.

(a) Report.--Within 90 days after the date of enactment of this
Act, the Administrator of the Federal Aviation Administration shall
submit a report to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure detailing the Administration program
and schedule for integrating ADS-B technology into the National
Airspace System. The report shall include--
(1) Phase 1 and Phase 2 activity to purchase and install
necessary ADS-B ground stations; and
(2) detailed plans and schedules for implementation of
advanced operational procedures and ADS-B air-to-air
applications.
(b) Rulemaking.--Not later than 12 months after the date of
enactment of this Act the Administrator shall issue guidelines and
regulations required for the implementation of ADS-B, including--
(1) the type of avionics (e.g., ADS-B avionics) required of
aircraft for all classes of airspace;
(2) a schedule outlining when aircraft will be required to
be equipped with such avionics;
(3) the expected costs associated with the avionics; and
(4) the expected uses and benefits of the avionics.

SEC. 315. FAA TASK FORCE ON AIR TRAFFIC CONTROL FACILITY CONDITIONS.

(a) Establishment.--The Administrator of the Federal Aviation
Administration shall establish a special task force to be known as the
``FAA Task Force on Air Traffic Control Facility Conditions''.
(b) Membership.--
(1) Composition.--The Task Force shall be composed of 11
members of whom--
(A) 7 members shall be appointed by the
Administrator; and
(B) 4 members shall be appointed by labor unions
representing employees who work at field facilities of
the Administration.
(2) Qualifications.--Of the members appointed by the
Administrator under paragraph (1)(A)--
(A) 4 members shall be specialists on toxic mold
abatement, ``sick building syndrome,'' and other
hazardous building conditions that can lead to employee
health concerns and shall be appointed by the
Administrator in consultation with the Director of the
National Institute for Occupational Safety and Health;
and
(B) 2 members shall be specialists on the
rehabilitation of aging buildings.
(3) Terms.--Members shall be appointed for the life of the
Task Force.
(4) Vacancies.--A vacancy in the Task Force shall be filled
in the manner in which the original appointment was made.
(5) Travel expenses.--Members shall serve without pay but
shall receive travel expenses, including per diem in lieu of
subsistence, in accordance with subchapter I of chapter 57 of
title 5, United States Code.
(c) Chairperson.--The Administrator shall designate, from among the
individuals appointed under subsection (b)(1), an individual to serve
as chairperson of the Task Force.
(d) Task Force Personnel Matters.--
(1) Staff.--The Task Force may appoint and fix the pay of
such personnel as it considers appropriate.
(2) Staff of federal agencies.--Upon request of the
Chairperson of the Task Force, the head of any department or
agency of the United States may detail, on a reimbursable
basis, any of the personnel of that department or agency to the
Task Force to assist it in carrying out its duties under this
section.
(3) Other staff and support.--Upon request of the Task
Force or a panel of the Task Force, the Administrator shall
provide the Task Force or panel with professional and
administrative staff and other support, on a reimbursable
basis, to the Task Force to assist it in carrying out its
duties under this section.
(e) Obtaining Official Data.--The Task Force may secure directly
from any department or agency of the United States information (other
than information required by any statute of the United States to be
kept confidential by such department or agency) necessary for the Task
Force to carry out its duties under this section. Upon request of the
chairperson of the Task Force, the head of that department or agency
shall furnish such information to the Task Force.
(f) Duties.--
(1) Study.--The Task Force shall undertake a study of--
(A) the conditions of all air traffic control
facilities across the Nation, including towers,
centers, and terminal radar air control;
(B) reports from employees of the Administration
relating to respiratory ailments and other health
conditions resulting from exposure to mold, asbestos,
poor air quality, radiation and facility-related
hazards in facilities of the Administration;
(C) conditions of such facilities that could
interfere with such employees' ability to effectively
and safely perform their duties;
(D) the ability of managers and supervisors of such
employees to promptly document and seek remediation for
unsafe facility conditions;
(E) whether employees of the Administration who
report facility-related illnesses are treated fairly;
(F) utilization of scientifically-approved
remediation techniques in a timely fashion once
hazardous conditions are identified in a facility of
the Administration; and
(G) resources allocated to facility maintenance and
renovation by the Administration.
(2) Facility condition indices.--The Task Force shall
review the facility condition indices of the Administration for
inclusion in the recommendations under subsection (g).
(g) Recommendations.--Based on the results of the study and review
of the facility condition indices under subsection (f), the Task Force
shall make recommendations as it considers necessary to--
(1) prioritize those facilities needing the most immediate
attention in order of the greatest risk to employee health and
safety;
(2) ensure that the Administration is using scientifically
approved remediation techniques in all facilities; and
(3) assist the Administration in making programmatic
changes so that aging air traffic control facilities do not
deteriorate to unsafe levels.
(h) Report.--Not later than 6 months after the date on which
initial appointments of members to the Task Force are completed, the
Task Force shall submit to the Administrator, the Committee on
Transportation and Infrastructure of the House of Representatives, and
the Committee on Commerce, Science, and Transportation of the Senate a
report on the activities of the Task Force, including the
recommendations of the Task Force under subsection (g).
(i) Implementation.--Within 30 days after receipt of the Task Force
report under subsection (h), the Administrator shall submit to the
House of Representatives Committee on Transportation and Infrastructure
and the Senate Committee on Commerce, Science, and Transportation a
report that includes a plan and timeline to implement the
recommendations of the Task Force and to align future budgets and
priorities of the Administration accordingly.
(j) Termination.--The Task Force shall terminate on the last day of
the 30-day period beginning on the date on which the report under
subsection (h) is submitted.
(k) Applicability of the Federal Advisory Committee Act.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Task Force.

SEC. 316. STATE ADS-B EQUIPAGE BANK PILOT PROGRAM.

(a) In General.--
(1) Cooperative agreements.--Subject to the provisions of
this section, the Secretary of Transportation may enter into
cooperative agreements with not to exceed 5 States for the
establishment of State ADS-B equipage banks for making loans
and providing other assistance to public entities for projects
eligible for assistance under this section.
(b) Funding.--
(1) Separate account.--An ADS-B equipage bank established
under this section shall maintain a separate aviation trust
fund account for Federal funds contributed to the bank under
paragraph (2). No Federal funds contributed or credited to an
account of an ADS-B equipage bank established under this
section may be commingled with Federal funds contributed or
credited to any other account of such bank.
(2) Authorization.--There are authorized to be appropriated
to the Secretary $25,000,000 for each of fiscal years 2009
through 2013.
(c) Forms of Assistance From ADS-B Equipage Banks.--An ADS-B
equipage bank established under this section may make loans or provide
other assistance to a public entity in an amount equal to all or part
of the cost of carrying out a project eligible for assistance under
this section. The amount of any loan or other assistance provided for
such project may be subordinated to any other debt financing for the
project.
(d) Qualifying Projects.--Federal funds in the ADS-B equipage
account of an ADS-B equipage bank established under this section may be
used only to provide assistance with respect to aircraft ADS-B avionics
equipage.
(e) Requirements.--In order to establish an ADS-B equipage bank
under this section, each State establishing such a bank shall--
(1) contribute, at a minimum, in each account of the bank
from non-Federal sources an amount equal to 50 percent of the
amount of each capitalization grant made to the State and
contributed to the bank;
(2) ensure that the bank maintains on a continuing basis an
investment grade rating on its debt issuances or has a
sufficient level of bond or debt financing instrument insurance
to maintain the viability of the bank;
(3) ensure that investment income generated by funds
contributed to an account of the bank will be--
(A) credited to the account;
(B) available for use in providing loans and other
assistance to projects eligible for assistance from the
account; and
(C) invested in United States Treasury securities,
bank deposits, or such other financing instruments as
the Secretary may approve to earn interest to enhance
the leveraging of projects assisted by the bank;
(5) ensure that any loan from the bank will bear interest
at or below market interest rates, as determined by the State,
to make the project that is the subject of the loan feasible;
(6) ensure that the term for repaying any loan will not
exceed 10 years after the date of the first payment on the
loan; and
(7) require the bank to make an annual report to the
Secretary on its status no later than September 30 of each year
for which funds are made available under this section, and to
make such other reports as the Secretary may require by
guidelines.

TITLE IV--AIRLINE SERVICE AND SMALL COMMUNITY AIR SERVICE IMPROVEMENTS

SEC. 401. AIRLINE CONTINGENCY SERVICE REQUIREMENTS.

(a) In General.--Chapter 417 is amended by adding at the end the
following:

``SUBCHAPTER IV--AIRLINE CUSTOMER SERVICE

``Sec. 41781. AIRLINE CONTINGENCY SERVICE REQUIREMENTS.
``(a) In General.--Not later than 60 days after the date of
enactment of the Aviation Investment and Modernization Act of 2008,
each air carrier shall submit a contingency service plan to the
Secretary of Transportation for review and approval. The plan shall
require the air carrier to implement, at a minimum, the following
practices:
``(1) Provision of food and water.--If the departure of a
flight of an air carrier is substantially delayed, or
disembarkation of passengers on an arriving flight that has
landed is substantially delayed, the air carrier shall
provide--
``(A) adequate food and potable water to passengers
on such flight during such delay; and
``(B) adequate restroom facilities to passengers on
such flight during such delay.
``(2) Right to deplane.--
``(A) In general.--An air carrier shall develop a
plan, that incorporates medical considerations, to
ensure that passengers are provided a clear timeframe
under which they will be permitted to deplane a delayed
aircraft. The air carrier shall provide a copy of the
plan to the Secretary of Transportation, who shall make
the plan available to the public. In the absence of
such a plan, except as provided in subparagraph (B), if
more than 3 hours after passengers have boarded a
flight, the aircraft doors are closed and the aircraft
has not departed, the air carrier shall provide
passengers with the option to deplane safely before the
departure of such aircraft. Such option shall be
provided to passengers not less often than once during
each 3-hour period that the plane remains on the
ground.
``(B) Exceptions.--Subparagraph (A) shall not
apply--
``(i) if the pilot of such flight
reasonably determines that such flight will
depart not later than 30 minutes after the 3
hour delay; or
``(ii) if the pilot of such flight
reasonably determines that permitting a
passenger to deplane would jeopardize passenger
safety or security.
``(C) Application to diverted flights.--This
section applies to aircraft without regard to whether
they have been diverted to an airport other than the
original destination.
``(b) Posting Consumer Rights on Website.--An air carrier holding a
certificate issued under section 41102 that conducts scheduled
passenger air transportation shall publish conspicuously and update
monthly on the Internet website of the air carrier a statement of the
air carrier's customer service policy and of air carrier customers'
consumer rights under Federal and State law.
``(c) Review and Approval; Minimum Standards.--The Secretary of
Transportation shall review the contingency service plan submitted by
an air carrier under subsection (a) and may approve it or disapprove it
and return it to the carrier for modification and resubmittal. The
Secretary may establish minimum standards for such plans and require
air carriers to meet those standards.
``(d) Air Carrier.--In this section the term `air carrier' means an
air carrier holding a certificate issued under section 41102 that
conducts scheduled passenger air transportation.''.
(b) Regulations.--Not later than 60 days after the date of
enactment of this Act, the Secretary of Transportation shall promulgate
such regulations as the Secretary determines necessary to carry out the
amendment made by subsection (a).
(c) Conforming Amendment.--The chapter analysis for chapter 417 is
amended by adding at the end the following:

subchapter iv. airline customer service
``41781. Airline contingency service requirements.''.

SEC. 402. PUBLICATION OF CUSTOMER SERVICE DATA AND FLIGHT DELAY
HISTORY.

Section 41722 is amended by adding at the end the following:
``(f) Chronically Delayed Flights.--
``(1) Publication of list of flights.--An air carrier
holding a certificate issued under section 41102 that conducts
scheduled passenger air transportation shall publish and update
monthly on the Internet website of the air carrier, or provide
on request, a list of chronically delayed flights operated by
the air carrier.
``(2) Disclosure to customers when purchasing tickets.--An
air carrier shall disclose the following information
prominently to an individual before that individual books
transportation on the air carrier's Internet website for any
flight for which data is reported to the Department of
Transportation under part 234 of title 14, Code of Federal
Regulations, and for which the air carrier has primary
responsibility for inventory control:
``(A) The on-time performance for the flight if it
is a chronically delayed flight.
``(B) The cancellation rate for the flight if it is
a chronically canceled flight.
``(3) Chronically delayed; chronically canceled.--The
Secretary of Transportation shall define the terms `chronically
delayed flight' and `chronically canceled flight' for purposes
of this subsection.''.

SEC. 403. EAS CONNECTIVITY PROGRAM.

Section 406(a) of the Vision 100--Century of Aviation
Reauthorization Act (49 U.S.C. 40101 note) is amended by striking
``may'' and inserting ``shall''.

SEC. 404. EXTENSION OF FINAL ORDER ESTABLISHING MILEAGE ADJUSTMENT
ELIGIBILITY.

Section 409(d) of the Vision 100--Century of Aviation
Reauthorization Act (49 U.S.C. 40101 note) is amended by striking
``September 30, 2007.'' and inserting ``September 30, 2011.''.

SEC. 405. EAS CONTRACT GUIDELINES.

Section 41737(a)(1) is amended--
(1) by striking ``and'' after the semicolon in subparagraph
(B);
(2) by striking ``provided.'' in subparagraph (C) and
inserting ``provided;''; and
(3) by adding at the end the following:
``(D) include provisions under which the Secretary may
encourage carriers to improve air service to small and rural
communities by incorporating financial incentives in essential
air service contracts based on specified performance goals; and
``(E) include provisions under which the Secretary may
execute long-term essential air service contracts to encourage
carriers to provide air service to small and rural communities
where it would be in the public interest to do so.''.

SEC. 406. CONVERSION OF FORMER EAS AIRPORTS.

(a) In General.--Section 41745 is amended--
(1) by redesignating subsections (c) through (g) as
subsections (d) through (h), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Conversion of Lost Eligibility Airports.--
``(1) In general.--The Secretary shall establish a program
to provide general aviation conversion funding for airports
serving eligible places that the Secretary has determined no
longer qualify for a subsidy.
``(2) Grants.--A grant under this subsection--
``(A) may not exceed twice the compensation paid to
provide essential air service to the airport in the
fiscal year preceding the fiscal year in which the
Secretary determines that the place served by the
airport is no longer an eligible place; and
``(B) may be used--
``(i) for airport development (as defined
in section 47102(3)) that will enhance general
aviation capacity at the airport;
``(ii) to defray operating expenses, if
such use is approved by the Secretary; or
``(iii) to develop innovative air service
options, such as on-demand or air taxi
operations, if such use is approved by the
Secretary.
``(3) AIP requirements.--An airport sponsor that uses funds
provided under this subsection for an airport development
project shall comply with the requirements of subchapter I of
chapter 471 applicable to airport development projects funded
under that subchapter with respect to the project funded under
this subsection.
``(4) Limitation.--The sponsor of an airport receiving
funding under this subsection is not eligible for funding under
section 41736.''.
(b) Conforming Amendment.--Section 41745(f), as redesignated, is
amended--
(1) by striking ``An eligible place'' and inserting
``Neither an eligible place, nor a place to which subsection
(c) applies,''; and
(2) by striking ``not''.

SEC. 407. EAS REFORM.

Section 41742(a) is amended--
(1) by adding at the end of paragraph (1) ``Any amount in
excess of $50,000,000 credited for any fiscal year to the
account established under section 45303(c) shall be obligated
for programs under section 406 of the Vision 100--Century of
Aviation Reauthorization Act (49 U.S.C. 40101 note) and section
41745 of this title. Amounts appropriated pursuant to this
section shall remain available until expended.''; and
(2) by striking ``$77,000,000'' in paragraph (2) and
inserting ``$125,000,000''.

SEC. 408. CLARIFICATION OF AIR CARRIER FEE DISPUTES.

(a) In General.--Section 47129 is amended--
(1) by striking the section heading and inserting the
following:
``Sec. 47129. Resolution of airport-air carrier and foreign air carrier
disputes concerning airport fees'' ;
(2) by inserting ``and Foreign Air Carrier'' after
``Carrier''  in the subsection caption for subsection (d);
(3) by inserting ``and foreign air carrier'' after
``Carrier'' in the paragraph caption for subsection (d)(2);
(4) by striking ``air carrier'' each place it appears and
inserting ``air carrier or foreign air carrier'';
(5) by striking ``air carrier's'' each place it appears and
inserting ``air carrier's or foreign air carrier's'';
(6) by striking ``air carriers'' and inserting ``air
carriers or foreign air carriers''; and
(7) 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)''.
(b) Conforming Amendment.--The chapter analysis for chapter 471 is
amended by striking the item relating to section 47129 and inserting
the following:

``47129. Resolution of airport-air carrier and foreign air carrier
disputes concerning airport fees.''.

SEC. 409. SMALL COMMUNITY AIR SERVICE.

(a) Priorities.--Section 41743(c)(5) is amended--
(1) by striking ``and'' after the semicolon in subparagraph
(D);
(2) by striking ``fashion.'' in subparagraph (E) and
inserting ``fashion; and''; and
(3) by adding at the end the following:
``(F) multiple communities cooperate to submit a
region or multistate application to improve air
service.''.
(b) Extension of Authorization.--Section 41743(e)(2) is amended by
striking ``2008'' and inserting ``2011''.

SEC. 410. CONTRACT TOWER PROGRAM.

(a) Cost-Benefit Requirement.--Section 47124(b)(1) is amended--
(1) by inserting ``(A)'' after ``(1)''; and
(2) by adding at the end the following:
``(B) If the Secretary determines that a tower already operating
under this program has a benefit to cost ratio of less than 1.0, the
airport sponsor or State or local government having jurisdiction over
the airport shall not be required to pay the portion of the costs that
exceeds the benefit for a period of 18 months after such determination
is made.
``(C) If the Secretary finds that all or part of an amount made
available to carry out the program continued under this paragraph is
not required during a fiscal year, the Secretary may use during such
fiscal year the amount not so required to carry out the program
established under paragraph (3) of this section.''.
(b) Funding.--Subparagraph (E) of section 47124(b)(3) is amended--
(1) by striking ``and'' after ``2006,''; and
(2) by inserting ``$8,500,000 for fiscal year 2008,
$9,000,000 for fiscal year 2009, $9,500,000 for fiscal year
2010, and $10,000,000 for fiscal year 2011'' after ``2007,'';
and
(3) by inserting after ``paragraph.'' the following: ``If
the Secretary finds that all or part of an amount made
available under this subparagraph is not required during a
fiscal year to carry out this paragraph, the Secretary may use
during such fiscal year the amount not so required to carry out
the program continued under paragraph (b)(1) of this
section.''.
(c) Federal Share.--Subparagraph (C) of section 47124(b)(4) is
amended by striking ``$1,500,000.'' and inserting ``$2,000,000.''.
(d) Safety Audits.--Section 41724 is amended by adding at the end
the following:
``(c)  Safety Audits.--The Secretary shall establish uniform
standards and requirements for safety assessments of air traffic
control towers that receive funding under this section in accordance
with the Administration's safety management system.''.

SEC. 411. AIRFARES FOR MEMBERS OF THE ARMED FORCES.

(a) Findings.--The Congress finds that--
(1) the Armed Forces is comprised of approximately
1,400,000 members who are stationed on active duty at more than
6,000 military bases in 146 different countries;
(2) the United States is indebted to the members of the
Armed Forces, many of whom are in grave danger due to their
engagement in, or exposure to, combat;
(3) military service, especially in the current war against
terrorism, often requires members of the Armed Forces to be
separated from their families on short notice, for long periods
of time, and under very stressful conditions;
(4) the unique demands of military service often preclude
members of the Armed Forces from purchasing discounted advance
airline tickets in order to visit their loved ones at home; and
(5) it is the patriotic duty of the people of the United
States to support the members of the Armed Forces who are
defending the Nation's interests around the world at great
personal sacrifice.
(b) Sense of Congress.--It is the sense of Congress that each
United States air carrier should--
(1) establish for all members of the Armed Forces on active
duty reduced air fares that are comparable to the lowest
airfare for ticketed flights; and
(2) offer flexible terms that allow members of the Armed
Forces on active duty to purchase, modify, or cancel tickets
without time restrictions, fees, and penalties.

SEC. 412. EXPANSION OF DOT AIRLINE CONSUMER COMPLAINT INVESTIGATIONS.

(a) In General.--Subject to the availability of appropriations, the
Secretary of Transportation shall investigate consumer complaints
regarding--
(1) flight cancellations;
(2) compliance with Federal regulations concerning
overbooking seats flights;
(3) lost, damaged, or delayed baggage, and difficulties
with related airline claims procedures;
(4) problems in obtaining refunds for unused or lost
tickets or fare adjustments;
(5) incorrect or incomplete information about fares,
discount fare conditions and availability, overcharges, and
fare increases;
(6) the rights of passengers who hold frequent flier miles,
or equivalent redeemable awards earned through customer-loyalty
programs; and
(7) deceptive or misleading advertising.
(b) Budget Needs Report.--The Secretary shall provide, as an annex
to its annual budget request, an estimate of resources which would have
been sufficient to investigate all such claims the Department of
Transportation received in the previous fiscal year. The annex shall be
transmitted to the Congress when the President submits the budget of
the United States to the Congress under section 1105 of title 31,
United States Code.

SEC. 413. EAS MARKETING.

The Secretary of Transportation shall require all applications to
provide service under subchapter II of chapter 417 of title 49, United
States Code, include a marketing plan.

SEC. 414. EXTRAPERIMETAL AND INTRAPERIMETAL SLOTS AT RONALD REAGAN
WASHINGTON NATIONAL AIRPORT.

(a) Beyond Perimeter Exemptions.--Section 41718 (a) is amended by
striking ``24'' and inserting ``36''.
(b) Within Perimeter Exemptions.--Section 41718 (b) is amended by
striking ``20'' and inserting ``28''.
(c) Limitations.--Section 41718(c) is amended--
(1) by striking ``3 operations.'' in paragraph (2) and
inserting ``5 operations. Operations conducted by new entrant
and limited incumbent air carriers shall be afforded a
scheduling priority over operations conducted by other air
carriers granted exemptions pursuant to section 41718 with the
highest scheduling priority afforded to beyond-perimeter
operations conducted by new entrant and limited incumbent air
carriers.'';
(2) by striking ``six'' in paragraph (3)(A) and inserting
``8'';
(3) by striking ``ten'' in paragraph (3)(B) and inserting
``12''; and
(4) by striking ``four'' in paragraph (3)(C) and inserting
``8''.

SEC. 415. ESTABLISHMENT OF ADVISORY COMMITTEE FOR AVIATION CONSUMER
PROTECTION.

(a) In General.--The Secretary of Transportation shall establish an
advisory committee for aviation consumer protection to advise the
Secretary in carrying out air passenger service improvements, including
those required by chapter 423 of title 49, United States Code.
(b) Membership.--The Secretary shall appoint members of the
advisory committee comprised of one representative each of--
(1) air carriers;
(2) airport operators;
(3) State or local governments who has expertise in
consumer protection matters; and
(4) a nonprofit public interest group who has expertise in
consumer protection matters.
(c) Vacancies.--A vacancy in the advisory committee shall be filled
in the manner in which the original appointment was made.
(d) Travel Expenses.--Members of the advisory committee shall serve
without pay but shall receive travel expenses, including per diem in
lieu of subsistence, in accordance with subchapter I of chapter 57 of
title 5, United States Code.
(e) Chairperson.--The Secretary shall designate, from among the
individuals appointed under subsection (b), an individual to serve as
chairperson of the advisory committee.
(f) Duties.--The duties of the advisory committee shall include--
(1) evaluating existing aviation consumer protection
programs and providing recommendations for the improvement of
such programs, if needed; and
(2) providing recommendations to establish additional
aviation consumer protection programs, if needed.
(g) Report.--Not later than February 1 of each of the first 2
calendar years beginning after the date of enactment of this Act, the
Secretary shall transmit to Congress a report containing--
(1) the recommendations made by the advisory committee
during the preceding calendar year; and
(2) an explanation of how the Secretary has implemented
each recommendation and, for each recommendation not
implemented, the Secretary's reason for not implementing the
recommendation.

SEC. 416. RURAL AVIATION IMPROVEMENT.

(a) Communities Above Per Passenger Subsidy Cap.--
(1) In general.--Subchapter II of chapter 417 is amended by
adding at the end the following:
``41749. Essential air service for eligible places above per passenger
subsidy cap
``(a) Proposals.--A State or local government may submit a proposal
to the Secretary of Transportation for compensation for an air carrier
to provide air transportation to a place described in subsection (b).
``(b) Place Described.--A place described in this subsection is a
place--
``(1) that is otherwise an eligible place; and
``(2) for which the per passenger subsidy exceeds the
dollar amount allowable under this subchapter.
``(c) Decisions.--Not later than 90 days after receiving a proposal
under subsection (a) for compensation for an air carrier to provide air
transportation to a place described in subsection (b), the Secretary
shall--
``(1) decide whether to provide compensation for the air
carrier to provide air transportation to the place; and
``(2) approve the proposal if the State or local government
or a person is willing and able to pay the difference between--
``(A) the per passenger subsidy; and
``(B) the dollar amount allowable for such subsidy
under this subchapter.
``(d) Compensation Payments.--
``(1) In general.--The Secretary shall pay compensation
under this section at such time and in such manner as the
Secretary determines is appropriate.
``(2) Duration of payments.--The Secretary shall continue
to pay compensation under this section only as long as--
``(A) the State or local government or person
agreeing to pay compensation under subsection (c)(2)
continues to pay such compensation; and
``(B) the Secretary decides the compensation is
necessary to maintain air transportation to the place.
``(e) Review.--
``(1) In general.--The Secretary shall periodically review
the type and level of air service provided under this section.
``(2) Consultation.--The Secretary may make appropriate
adjustments in the type and level of air service to a place
under this section based on the review under paragraph (1) and
consultation with the affected community and the State or local
government or person agreeing to pay compensation under
subsection (c)(2).
``(f) Ending, Suspending, and Reducing Air Transportation.--An air
carrier providing air transportation to a place under this section may
end, suspend, or reduce such air transportation if, not later than 30
days before ending, suspending, or reducing such air transportation,
the air carrier provides notice of the intent of the air carrier to
end, suspend, or reduce such air transportation to--
``(1) the Secretary;
``(2) the affected community; and
``(3) the State or local government or person agreeing to
pay compensation under subsection (c)(2).''.
(2) Clerical amendment.--The chapter analysis for chapter
417 is amended by adding after the item relating to section
41748 the following new item:

``41749. Essential air service for eligible places above per passenger
subsidy cap.''.
(b) Preferred Essential Air Service.--
(1) In general.--Subchapter II of chapter 417, as amended
by subsection (a), is further amended by adding after section
41749 the following:
``41750. Preferred essential air service
``(a) Proposals.--A State or local government may submit a proposal
to the Secretary of Transportation for compensation for a preferred air
carrier described in subsection (b) to provide air transportation to an
eligible place.
``(b) Preferred Air Carrier Described.--A preferred air carrier
described in this subsection is an air carrier that--
``(1) submits an application under section 41733(c) to
provide air transportation to an eligible place;
``(2) is not the air carrier that submits the lowest cost
bid to provide air transportation to the eligible place; and
``(3) is an air carrier that the affected community prefers
to provide air transportation to the eligible place instead of
the air carrier that submits the lowest cost bid.
``(c) Decisions.--Not later than 90 days after receiving a proposal
under subsection (a) for compensation for a preferred air carrier
described in subsection (b) to provide air transportation to an
eligible place, the Secretary shall--
``(1) decide whether to provide compensation for the
preferred air carrier to provide air transportation to the
eligible place; and
``(2) approve the proposal if the State or local government
or a person is willing and able to pay the difference between--
``(A) the rate of compensation the Secretary would
provide to the air carrier that submits the lowest cost
bid to provide air transportation to the eligible
place; and
``(B) the rate of compensation the preferred air
carrier estimates to be necessary to provide air
transportation to the eligible place.
``(d) Compensation Payments.--
``(1) In general.--The Secretary shall pay compensation
under this section at such time and in such manner as the
Secretary determines is appropriate.
``(2) Duration of payments.--The Secretary shall continue
to pay compensation under this section only as long as--
``(A) the State or local government or person
agreeing to pay compensation under subsection (c)(2)
continues to pay such compensation; and
``(B) the Secretary decides the compensation is
necessary to maintain air transportation to the
eligible place.
``(e) Review.--
``(1) In general.--The Secretary shall periodically review
the type and level of air service provided under this section.
``(2) Consultation.--The Secretary may make appropriate
adjustments in the type and level of air service to an eligible
place under this section based on the review under paragraph
(1) and consultation with the affected community and the State
or local government or person agreeing to pay compensation
under subsection (c)(2).
``(f) Ending, Suspending, and Reducing Air Transportation.--A
preferred air carrier providing air transportation to an eligible place
under this section may end, suspend, or reduce such air transportation
if, not later than 30 days before ending, suspending, or reducing such
air transportation, the preferred air carrier provides notice of the
intent of the preferred air carrier to end, suspend, or reduce such air
transportation to--
``(1) the Secretary;
``(2) the affected community; and
``(3) the State or local government or person agreeing to
pay compensation under subsection (c)(2).''.
(2) Clerical amendment.--The chapter analysis for chapter
417, as amended by subsection (a), is further amended by adding
after the item relating to section 41749 the following new
item:

``41750. Preferred essential air service.''.
(c) Restoration of Eligibility to a Place Determined by the
Secretary To Be Ineligible for Subsidized Essential Air Service.--
Section 41733 is amended by adding at the end the following new
subsection:
``(f) Restoration of Eligibility for Subsidized Essential Air
Service.--
``(1) In general.--If the Secretary of Transportation
terminates the eligibility of an otherwise eligible place to
receive basic essential air service by an air carrier for
compensation under subsection (c), a State or local government
may submit to the Secretary a proposal for restoring such
eligibility.
``(2) Determination by secretary.--If the per passenger
subsidy required by the proposal submitted by a State or local
government under paragraph (1) does not exceed the per
passenger subsidy cap provided under this subchapter, the
Secretary shall issue an order restoring the eligibility of the
otherwise eligible place to receive basic essential air service
by an air carrier for compensation under subsection (c).''.
(d) Office of Rural Aviation.--
(1) Establishment.--There is established within the Office
of the Secretary of Transportation the Office of Rural
Aviation.
(b) Functions.--The functions of the Office are--
(1) to develop a uniform 4-year contract for air carriers
providing essential air service to communities under subchapter
II of chapter 417 of title 49, United States Code;
(2) to develop a mechanism for comparing applications
submitted by air carriers under section 41733(c) to provide
essential air service to communities, including comparing--
(A) estimates from air carriers on--
(i) the cost of providing essential air
service; and
(ii) the revenues air carriers expect to
receive when providing essential air service;
and
(B) estimated schedules for air transportation; and
(3) to select an air carrier from among air carriers
applying to provide essential air service, based on the
criteria described in paragraph (2).
(e) Extension of Authority To Make Agreements Under the Essential
Air Service Program.--Section 41743(e)(2) is amended by striking
``2008'' and inserting ``2011''.
(f) Adjustments to Compensation for Significantly Increased
Costs.--Section 41737 is amended--
(1) by striking ``and'' after the semicolon in subsection
(a)(1)(B);
(2) by striking ``provided.'' in subsection (a)(1)(C) and
inserting ``provided; and'';
(3) by adding at the end of subsection (a)(1) the
following:
``(D) provide for an adjustment in compensation,
for service or transportation to a place that was an
eligible place as of November 1, 2007, to account for
significant increases in fuel costs, in accordance with
subsection (e).''; and
(4) by adding at the end thereof the following:
``(f) Fuel Cost Subsidy Disregard.--Any amount provided as an
adjustment in compensation pursuant to subsection (a)(1)(D) shall be
disregarded for the purpose of determining whether the amount of
compensation provided under this subchapter with respect to an eligible
place exceeds the per passenger subsidy exceeds the dollar amount
allowable under this subchapter.''.
(f) Continued Eligibility.--Notwithstanding any provision of
subchapter II of chapter 417 of title 49, United States Code, to the
contrary, a community that was receiving service or transportation
under that subchapter as an eligible place (as defined in section
41731(a)(1) of such title) as of November 1, 2007, shall continue to be
eligible to receive service or transportation under that subchapter
without regard to whether the per passenger subsidy required exceeds
the per passenger subsidy cap provided under that subchapter.

TITLE V--AVIATION SAFETY

SEC. 501. RUNWAY SAFETY EQUIPMENT PLAN.

Not later than December 31, 2008, the Administrator of the Federal
Aviation Administration shall issue a plan to develop an installation
and deployment schedule for systems the Administration is installing to
alert controllers and flight crews to potential runway incursions. The
plan shall be integrated into the annual Federal Aviation
Administration operational evolution plan.

SEC. 502. AIRCRAFT FUEL TANK SAFETY IMPROVEMENT.

Not later than December 31, 2008, the Federal Aviation
Administration shall issue a final rule regarding the reduction of fuel
tank flammability in transport category aircraft.

SEC. 503. 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 this subsection, 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. 504. 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 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 3 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) In this section, the term `engineering data' means
type design drawings and specifications for the entire product
or change to the product, including the original design data,
and any associated supplier data for individual parts or
components approved as part of the particular aeronautical
product certificate.''.

SEC. 505. DESIGN ORGANIZATION CERTIFICATES.

Section 44704(e) is amended--
(1) by striking ``Beginning 7 years after the date of
enactment of this subsection,'' in paragraph (1) and inserting
``Effective January 1, 2013,'';
(2) by striking ``testing'' in paragraph (2) and inserting
``production''; and
(3) by striking paragraph (3) and inserting the following:
``(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. 506. FAA ACCESS TO CRIMINAL HISTORY RECORDS OR DATABASE SYSTEMS.

(a) In General.--Chapter 401 is amended by adding at the end
thereof the following:
``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 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 commission 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) System of Documented Criminal Justice Information Defined.--
In this section the term `system of documented criminal justice
information' means any law enforcement databases, systems, or
communications containing information concerning identification,
criminal history, arrests, convictions, arrest warrants, or wanted or
missing persons, including the National Crime Information Center and
its incorporated criminal history databases and the National Law
Enforcement Telecommunications System.''.
(b) Conforming Amendment.--The chapter analysis for chapter 401 is
amended by inserting after the item relating to section 40129 the
following:

``40130. FAA access to criminal history records or databases
systems.''.

SEC. 507. FLIGHT CREW FATIGUE.

(a) In General.--Within 3 months after the date of enactment of
this Act the Administrator of the Federal Aviation Administration shall
conclude arrangements with the National Academy of Sciences for a study
of pilot fatigue.
(b) Study.--The study shall include consideration of--
(1) research on fatigue, sleep, and circadian rhythms;
(2) sleep and rest requirements recommended by the National
Transportation Safety Board; and
(3) international standards.
(c) Report.--Within 18 months after initiating the study, the
National Academy shall submit a report to the Administrator containing
its findings and recommendations, including recommendations with
respect to Federal Aviation Regulations governing flight limitation and
rest requirements.
(d) Rulemaking.--After the Administrator receives the National
Academy's report, the Federal Aviation Administration shall consider
the findings of the National Academy in its rulemaking proceeding on
flight time limitations and rest requirements.
(e) Implementation of Flight Attendant Fatigue Study
Recommendations.--Within 60 days after the date of enactment of this
Act, the Administrator of the Federal Aviation Administration shall
initiate a process to carry out the recommendations of the CAMI study
on flight attendant fatigue.

SEC. 508. INCREASING SAFETY FOR HELICOPTER EMERGENCY MEDICAL SERVICE
OPERATORS.

(a) Compliance With 14 CFR Part 135 Regulations.--No later than 18
months after the date of enactment of this Act, all helicopter
emergency medical service operators shall comply with the regulations
in part 135 of title 14, Code of Federal Regulations whenever there is
a medical crew on board, without regard to whether there are patients
on board the helicopter.
(b) Implementation of Flight Risk Evaluation Program.--Within 60
days after the date of enactment of this Act, the Federal Aviation
Administration shall initiate, and complete within 18 months, a
rulemaking--
(1) to create a standardized checklist of risk evaluation
factors based on its Notice 8000.301, issued in August, 2005;
and
(2) to require helicopter emergency medical service
operators to use the checklist to determine whether a mission
should be accepted.
(c) Comprehensive Consistent Flight Dispatch Procedures.--Within 60
days after the date of enactment of this Act, the Federal Aviation
Administration shall initiate, and complete within 18 months, a
rulemaking--
(1) to create standardized flight dispatch procedures for
helicopter emergency medical service operators based on the
regulations in part 121 of title 14, Code of Federal
Regulations; and
(2) to require such operators to use those procedures for
flights.
(d) Improving Situational Awareness.--Any helicopter used for
helicopter emergency medical service operations that is ordered,
purchased, or otherwise obtained after the date of enactment of this
Act shall have on board an operational terrain awareness and warning
system that meets the technical specifications of section 135.154 of
the Federal Aviation Regulations (14 C.F.R. 135.154).
(e) Improving the Data Available to NTSB Investigators at Crash
Sites.--
(1) Study.--Within 1 year after the date of enactment of
this Act, the Federal Aviation Administration shall complete a
feasibility study of requiring flight data and cockpit voice
recorders on new and existing helicopters used for emergency
medical service operations. The study shall address, at a
minimum, issues related to survivability, weight, and financial
considerations of such a requirement.
(2) Rulemaking.--Within 2 years after the date of enactment
of this Act, the Federal Aviation Administration shall complete
a rulemaking to require flight data and cockpit voice recorders
on board such helicopters.

SEC. 509. CABIN CREW COMMUNICATION.

(a) In General.--Section 44728 is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following:
``(f) Minimum Language Skills.--
``(1) In general.--No certificate holder may use any person
to serve, nor may any person serve, as a flight attendant under
this part, unless that person has the ability to read, speak,
and write English well enough to--
``(A) read material written in English and
comprehend the information;
``(B) speak and understand English sufficiently to
provide direction to, and understand and answer
questions from, English-speaking individuals;
``(C) write incident reports and statements and log
entries and statements; and
``(D) carry out written and oral instructions
regarding the proper performance of their duties.
``(2) Foreign flights.--The requirements of paragraph (1)
do not apply to service as a flight attendant on a flight
operated by a certificate holder solely between points outside
the United States.''.
(b) Administration.--The Administrator of the Federal Aviation
Administration shall work with certificate holders to which section
44728(f) of title 49, United States Code, applies to facilitate
compliance with the requirements of section 44728(f)(1) of that title.

SEC. 510. CLARIFICATION OF MEMORANDUM OF UNDERSTANDING WITH OSHA.

(a) In General.--Within 6 months after the date of enactment of
this Act, the Administrator of the Federal Aviation Administration
shall--
(1) establish milestones, in consultation with the
Occupational Safety and Health Administration, through a report
to Congress for the completion of work begun under the August
2000 memorandum of understanding between the 2 Administrations
and to address issues needing further action in the
Administrations' joint report in December 2000; and
(2) initiate development of a policy statement to set forth
the circumstances in which Occupational Safety and Health
Administration requirements may be applied to crewmembers while
working in the aircraft cabin.
(b) Policy Statement.--The policy statement to be developed under
subsection (a)(2) shall satisfy the following principles:
(1) The establishment of a coordinating body similar to the
Aviation Safety and Health Joint Team established by the August
2000 memorandum of understanding that includes representatives
designated by both Administrations--
(A) to examine the applicability of current and
future Occupational Safety and Health Administration
regulations;
(B) to recommend policies for facilitating the
training of Federal Aviation Administration inspectors;
and
(C) to make recommendations that will govern the
inspection and enforcement of safety and health
standards on board aircraft in operation and all work-
related environments.
(2) Any standards adopted by the Federal Aviation
Administration shall set forth clearly--
(A) the circumstances under which an employer is
required to take action to address occupational safety
and health hazards;
(B) the measures required of an employer under the
standard; and
(C) the compliance obligations of an employer under
the standard.

SEC. 511. ACCELERATION OF DEVELOPMENT AND IMPLEMENTATION OF REQUIRED
NAVIGATION PERFORMANCE APPROACH PROCEDURES.

(a) In General.--The Administrator of the Federal Aviation
Administration shall set a target of achieving a minimum of 200
Required Navigation Performance procedures each fiscal year through
fiscal year 2012, with 25 percent of that target number meeting the low
visibility approach criteria.
(b) Use of Third Parties.--The Administrator is authorized to
provide third parties the ability to design, flight check, and
implement Required Navigation Performance approach procedures.

SEC. 512. ENHANCED SAFETY FOR AIRPORT OPERATIONS.

From amounts appropriated for fiscal years 2009 through 2011
pursuant to section 48101(a) of title 49, United States Code, the
Secretary shall make available such sums as may be necessary for use in
relocating the radar facility at National Plan of Integrated Airport
Systems airport number 54-0026 to improve the safety, efficiency, and
security of air traffic control, navigation, low altitude
communications and surveillance, and weather. The Administrator of the
Federal Aviation Administration shall ensure that the radar is
relocated before September 30, 2011.

SEC. 513. IMPROVED SAFETY INFORMATION.

Not later than December 31, 2008, the Administrator of the Federal
Aviation Administration shall issue a final rule in docket No. FAA-
2008-0188, Re-registration and Renewal of Aircraft Registration. The
final rule shall include--
(1) provision for the expiration of a certificate for an
aircraft registered as of the date of enactment of this Act,
with re-registration requirements for those aircraft that
remain eligible for registration;
(2) provision for the periodic expiration of all
certificates issued after the effective date of the rule with a
registration renewal process; and
(3) other measures to promote the accuracy and efficient
operation and value of the Administration's aircraft registry.

SEC. 514. VOLUNTARY DISCLOSURE REPORTING PROCESS IMPROVEMENTS.

Within 180 days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration shall--
(1) take such action as may be necessary to ensure that the
Voluntary Disclosure Reporting Process requires inspectors--
(A) to evaluate corrective action proposed by an
air carrier with respect to a matter disclosed by that
air carrier is sufficiently comprehensive in scope and
application and applies to all affected aircraft
operated by that air carrier before accepting the
proposed voluntary disclosure; and
(B) to verify that corrective action so identified
by an air carrier is completed within the timeframe
proposed; and
(C) to verify by inspection that the carrier's
corrective action adequately corrects the problem that
was disclosed; and
(2) establish a second level supervisory review of
disclosures under the Voluntary Disclosure Reporting Process
before any proposed disclosure is accepted and closed that will
ensure that a matter disclosed by an air carrier--
(A) has not been previously identified by a Federal
Aviation Administration inspector; and
(B) has not been previously disclosed by the
carrier in the preceding 5 years.

SEC. 515. PROCEDURAL IMPROVEMENTS FOR INSPECTIONS.

(a) Employment by Inspected Air Carriers.--Within 90 days after the
date of enactment of this Act, the Administrator of the Federal
Aviation Administration shall initiate a rulemaking proceeding to
revise its post-employment guidance to prohibit an inspector employed
by an air carrier the inspector was responsible for inspecting from
representing that air carrier before the Federal Aviation
Administration or participating in negotiations or other contacts with
the Federal Aviation Administration on behalf of that air carrier for a
period of 2 years after terminating employment by the Federal Aviation
Administration.
(b) Inspection Tracking.--Within 90 days after the date of
enactment of this Act, the Administrator of the Federal Aviation
Administration shall implement a process for tracking field office
review of air carrier compliance with Federal Aviation Administration
air worthiness directives. In tracking air worthiness directive
compliance, the Administrator shall ensure that--
(1) each air carriers under the Administration's air
transportation oversight system is reviewed for 100 percent
compliance on a 5-year cycle;
(2) Compliance reviews include physical inspections at each
applicable carrier of a sample of the aircraft to which the air
worthiness certificate applies; and
(3) the appropriate local and regional offices, and the
Administrator, are alerted whenever a carrier is no longer in
compliance with an air worthiness directive.

SEC. 516. INDEPENDENT REVIEW OF SAFETY ISSUES.

Within 30 days after the date of enactment of this Act, the
Comptroller General shall initate a review and investigation of air
safety issues identified by Federal Aviation Administration employees
and reported to the Administrator. The Comptroller General shall report
the Government Accountability Office's findings and recommendations to
the Administrator, the Senate Committee on Commerce, Science, and
Transportation, and the House of Representatives Committee on
Transportation and Infrastructure on an annual basis.

SEC. 517. NATIONAL REVIEW TEAM.

(a) In General.--Within 180 days after the date of enactment of
this Act, the Administrator of the Federal Aviation Administration
shall establish a national review team within the Administration to
conduct periodic, random reviews of the Administration's oversight of
air carriers and report annually its findings and recommendations to
the Administrator, the Senate Commerce, Science, and Transportation
Committee, and the House of Representatives Committee on Transportation
and Infrastructure.
(b) Inspector General Reports.--The Inspector General of the
Department of Transportation shall provide progress reports to the
Senate Committee on Commerce, Science, and Transportation and the House
of Representatives Committee on Transportation and Infrastructure on
the review teams and their effectiveness.
(c) Additional Safety Inspectors.--From amounts appropriated
pursuant to section 106(k)(1) of title 49, United States Code, the
Administrator of the Federal Aviation Administration may hire a net
increase of 200 additional safety inspectors.

SEC. 518. FAA ACADEMY IMPROVEMENTS.

(a) Review.--Within 1 year after the date of enactment of this Act,
the Administrator of the Federal Aviation Administration shall conduct
a comprehensive review and evaluation of its Academy and facility
training efforts.
(b) Facility Training Program.--The Administrator shall--
(1) clarify responsibility for oversight and direction of
the Academy's facility training program at the national level;
(2) communicate information concerning that responsibility
to facility managers; and
(3) establish standards to identify the number of
developmental controllers that can be accommodated at each
facility, based on--
(A) the number of available on-the-job-training
instructors;
(B) available classroom space;
(C) the number of available simulators;
(D) training requirements; and
(E) the number of recently placed new personnel
already in training.

SEC. 519. REDUCTION OF RUNWAY INCURSIONS AND OPERATIONAL ERRORS.

(a) Plan.--The Administrator of the Federal Aviation Administration
shall develop a plan for the reduction of runway incursions by
reviewing every commercial service airport (as defined in section 47102
of title 49, United States Code) in the United States and initiating
action to improve airport lighting, provide better signage, and improve
runway and taxiway markings.
(b) Process.--Within 1 year after the date of enactment of this
Act, the Administrator of the Federal Aviation Administration shall
develop a process for tracking and investigating operational errors and
runway incursions that includes--
(1) identifying the office responsible for establishing
regulations regarding operational errors and runway incursions;
(2) identifying who is responsible for tracking and
investigating operational errors and runway incursions and
taking remedial actions;
(3) identifying who is responsible for tracking operational
errors and runway incursions, including a process for lower
level employees to report to higher supervisory levels; and
(4) periodic random audits of the oversight process.

TITLE VI--AVIATION RESEARCH

SEC. 601. AIRPORT COOPERATIVE RESEARCH PROGRAM.

(a) In General.--Section 44511(f) is amended--
(1) by striking ``establish a 4-year pilot'' in paragraph
(1) and inserting ``maintain an''; and
(2) by inserting ``pilot'' in paragraph (4) before
``program'' the first time it appears; and
(3) by striking ``program, including recommendations as to
the need for establishing a permanent airport cooperative
research program.'' in paragraph (4) and inserting
``program.''.
(b) Airport Cooperative Research Program.--Not more than
$15,000,000 per year for fiscal years 2008, 2009, 2010, and 2011 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.

SEC. 602. REDUCTION OF NOISE, EMISSIONS, AND ENERGY CONSUMPTION FROM
CIVILIAN AIRCRAFT.

(a) Establishment of Research Program.--From amounts made available
under section 48102(a) of title 49, United States Code, the
Administrator of the Federal Aviation Administration shall establish a
research program related to reducing civilian aircraft source noise and
emissions through grants or other measures authorized under section
106(l)(6) of such title, including reimbursable agreements with other
Federal agencies. The program shall include participation of
educational and research institutions or private sector entities that
have existing facilities and experience for developing and testing
noise, emissions and energy reduction engine and aircraft technology,
and developing alternative fuels.
(b) Establishing a Consortium.--Within 6 months after the date of
enactment of this Act, the Administrator shall designate, using a
competitive process, an institution, entity, or consortium described in
subsection (a) as a Consortium for Aviation Noise, Emissions, and
Energy Technology Research to perform research in accordance with this
section. The Consortium shall conduct the research program in
coordination with the National Aeronautics and Space Administration and
other relevant agencies.
(c) Performance Objectives.--By January 1, 2015, the research
program shall accomplish the following objectives:
(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 nitrogen oxide emissions by 50 percent, without
increasing other gaseous or particle emissions, over the
International Civil Aviation Organization standard adopted in
2004.
(3) Certifiable aircraft technology that reduces noise
levels by 10 dB (30 dB cumulative) 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.
(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.

SEC. 603. PRODUCTION OF CLEAN COAL FUEL TECHNOLOGY FOR CIVILIAN
AIRCRAFT.

(a) Establishment of Research Program.--From amounts made available
under section 48102(a) of title 49, United States Code, the Secretary
of Transportation shall establish a research program related to
developing jet fuel from clean coal through grants or other measures
authorized under section 106(l)(6) of such title, including
reimbursable agreements with other Federal agencies. The program shall
include participation by educational and research institutions that
have existing facilities and experience in the development and
deployment of technology that processes coal to aviation fuel.
(b) Designation of Institution as a Center of Excellence.--Within 6
months after the date of enactment of this Act, the Administrator of
the Federal Aviation Administration shall designate an institution
described in subsection (a) as a Center of Excellence for Coal-to-Jet-
Fuel Research.

SEC. 604. ADVISORY COMMITTEE ON FUTURE OF AERONAUTICS.

(a) Establishment.--There is established an advisory committee to
be know as the ``Advisory Committee on the Future of Aeronautics''.
(b) Membership.--The Advisory Committee shall consist of 7 members
appointed by the President from a list of 15 candidates proposed by the
Director of the National Academy of Sciences.
(c) Chairperson.--The Advisory Committee members shall elect 1
member to serve as chairperson of the Advisory Committee.
(d) Functions.--The Advisory Committee shall examine the best
governmental and organizational structures for the conduct of civil
aeronautics research and development, including options and
recommendations for consolidating such research to ensure continued
United States leadership in civil aeronautics. The Committee shall
consider transferring responsibility for civil aeronautics research and
development from the National Aeronautics and Space Administration to
other existing departments or agencies of the Federal Government or to
a non-governmental organization such as academic consortia or not-for-
profit organizations. In developing its recommendations, the Advisory
Committee shall consider, as appropriate, the aeronautics research
policies developed pursuant to section 101(d) of Public Law 109-155 and
the requirements and priorities for aeronautics research established by
title IV of Public Law 109-155.
(e) Report.--Not later than 12 months after the date on which the
full membership of the Advisory Committee is appointed, the Advisory
Committee shall submit a report to the Senate Committee on Commerce,
Science, and Transportation and the House Committees on Science and
Technology and on Transportation and Infrastructure on its findings and
recommendations. The report may recommend a rank ordered list of
acceptable solutions.
(f) Termination.--The Advisory Committee shall terminate 60 days
after the date on which it submits the report to the Congress.

SEC. 605. RESEARCH PROGRAM TO IMPROVE AIRFIELD PAVEMENTS.

(a) Continuation of Program.--The Administrator of the Federal
Aviation Administration shall continue the program to consider awards
to nonprofit concrete and asphalt pavement research foundations to
improve the design, construction, rehabilitation, and repair of
airfield pavements to aid in the development of safer, more cost
effective, and more durable airfield pavements.
(b) Use of Grants or Cooperative Agreements.--The Administrator may
use grants or cooperative agreements in carrying out this section.

SEC. 606. WAKE TURBULENCE, VOLCANIC ASH, AND WEATHER RESEARCH.

Within 60 days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration shall--
(1) initiate evaluation of proposals that would increase
capacity throughout the air transportation system by reducing
existing spacing requirements between aircraft of all sizes,
including research on the nature of wake vortices;
(2) begin implementation of a system to improve volcanic
ash avoidance options for aircraft, including the development
of a volcanic ash warning and notification system for aviation;
and
(3) establish research projects on--
(A) ground de-icing/anti-icing, ice pellets, and
freezing drizzle;
(B) oceanic weather, including convective weather;
(C) en route turbulence prediction and detection;
and
(D) all hazards during oceanic operations, where
commercial traffic is high and only rudimentary
satellite sensing is available, to reduce the hazards
presented to commercial aviation.

SEC. 607. INCORPORATION OF UNMANNED AERIAL SYSTEMS INTO FAA PLANS AND
POLICIES.

(a) Research.--
(1) Equipment.--Section 44504 is amended--
(A) by inserting ``unmanned and manned'' in
subsection (a) after ``improve'';
(B) by striking ``and'' after the semicolon in
subsection (b)(6);
(C) by striking ``aircraft.'' in subsection (b)(7)
and inserting ``aircraft; and''; and
(D) by adding at the end of subsection (b) the
following:
``(8) in conjunction with other Federal agencies as
appropriate, to develop technologies and methods to assess the
risk of and prevent defects, failures, and malfunctions of
products, parts, and processes, for use in all classes of
unmanned aerial systems that could result in a catastrophic
failure.''.
(2) Human Factors; Simulations.--Section 44505(b) is
amended--
(A) by striking ``and'' after the semicolon in
paragraph (4);
(B) by striking ``programs.'' in paragraph (5)(C)
and inserting ``programs; and''; and
(C) by adding at the end thereof the following:
``(6) to develop a better understanding of the relationship
between human factors and unmanned aerial systems air safety;
and
``(7) to develop dynamic simulation models of integrating
all classes of unmanned aerial systems into the National Air
Space.''.
(b) National Academy of Sciences Assessment.--
(1) In general.--Within 3 months after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall enter into an arrangement with
the National Academy of Science for an assessment of unmanned
aerial systems that shall include consideration of--
(A) human factors regarding unmanned aerial systems
operation;
(B) ``detect, sense and avoid technologies'' with
respect to both cooperative and non-cooperative
aircraft;
(C) spectrum issues and bandwidth requirements;
(D) operation in suboptimal winds and adverse
weather conditions;
(E) mechanisms for letter others know where the
unmanned aerial system is flying;
(F) airworthiness and system redundancy;
(G) flight termination systems for safety and
security;
(H) privacy issues;
(I) technologies for unmanned aerial systems flight
control;
(J) technologies for unmanned aerial systems
propulsion;
(K) unmanned aerial systems operator
qualifications, medical standards, and training
requirements;
(L) unmanned aerial systems maintenance
requirements and training requirements; and
(M) any other unmanned aerial systems-related issue
the Administrator believes should be addressed.
(2) Report.--Within 12 months after initiating the study,
the National Academy shall submit its report to the
Administrator, the Senate Committee on Commerce, Science, and
Transportation, and the House of Representatives Committee on
Transportation and Infrastructure containing its findings and
recommendations.
(c) Pilot Projects.--
(1) In general.--The Administrator of the Federal Aviation
Administration shall establish 3 2-year cost-shared pilot
projects in sparsely populated, low-density Class G air traffic
airspace to conduct experiments and collect data in order to
accelerate the safe integration of unmanned aerial systems into
the National Airspace System as follows:
(A) 1 project shall address operational issues
required for integration of Category 1 unmanned aerial
systems.
(B) 1 project shall address operational issues
required for integration of Category 2 unmanned aerial
systems.
(C) 1 project shall address operational issues
required for integration of Category 3 unmanned aerial
systems.
(2) Use of consortia.--In conducting the pilot projects,
the Administrator shall encourage the formation of consortia
from the public and private sectors, educational institutions,
and non-profit organization.
(3) Report.--Within 60 days after completing the pilot
projects, the Administrator shall transmit a report to the
Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Transportation and
Infrastructure setting forth the Administrator's findings and
conclusions concerning the projects.
(4) Authorization of appropriations.--There are authorized
to be appropriated to the Administrator for fiscal years 2008
and 2009 such sums as may be necessary to conduct the pilot
projects.
(d) FAA Task List.--
(1) Streamline unmanned aerial systems certification
process.--Within 30 days after the date of enactment of this
Act, the Administrator of the Federal Aviation Administration
shall develop and transmit an unmanned aerial systems
``roadmap'' to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Transportation and Infrastructure.
(2) Update policy statement.--Within 45 days after the date
of enactment of this Act, the Administrator shall issue an
updated policy statement on unmanned aerial systems under
Docket No. FAA-2006-25714; Notice No. 07-01.
(3) Issue nprm for certificates.--Within 90 days after the
date of enactment of this Act, the Administrator shall publish
a notice of proposed rulemaking on issuing airworthiness
certificates and experimental certificates to unmanned aerial
systems operators for compensation or hire. The Administrator
shall promulgate a final rule 90 days after the date on which
the notice is published.
(4) Notice to congress on basing unmanned aerial systems
regulations on ultralight regulations.--Within 90 days after
the date of enactment of this Act, the Administrator shall
transmit a report to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee
on Transportation and Infrastructure on the potential of using
part 103 of title 14, Code of Federal Regulations (relating to
Ultralight Aircraft), as the regulatory basis for regulations
on lightweight unmanned aerial systems.
(e) Consolidated Rulemaking Deadline.--No later than April 30,
2010, the Federal Aviation Administration and other affected Federal
agencies shall have initiated all of the rule makings regarding vehicle
design requirements, operational requirements, airworthiness
requirements, and flight crew certifications requirements necessary for
integrating all categories of unmanned aerial systems into the national
air space, taking into consideration the recommendations the
Administrator receives from the National Academy of Sciences report
under subsection (b), the unmanned aerial systems ``roadmap'' developed
by the Administrator under subsection (d)(1), the recommendations of
the Radio Technical Committee Aeronautics Special Committee 203 (RTCA-
SC 203), and the data generated from the 3 pilot projects conducted
under subsection (c).

SEC. 608. REAUTHORIZATION OF CENTER OF EXCELLENCE IN APPLIED RESEARCH
AND TRAINING IN THE USE OF ADVANCED MATERIALS IN
TRANSPORT AIRCRAFT.

Section 708(b) of the Vision 100--Century of Aviation
Reauthorization Act (49 U.S.C. 44504 note) is amended by striking
``$500,000 for fiscal year 2004'' and inserting ``$1,000,000 for each
of fiscal years 2008 through 2012''.

SEC. 609. PILOT PROGRAM FOR ZERO EMISSION AIRPORT VEHICLES.

(a) In General.--Subchapter I of chapter 471 is amended by
inserting after section 47136 the following:
``Sec. 47136A. Zero emission airport vehicles and infrastructure
``(a) In General.--The Secretary of Transportation shall establish
a pilot program under which the sponsor of a public-use airport may use
funds made available under section 47117 or section 48103 for use at
such airports or passenger facility revenue (as defined in section
40117(a)(6)) to carry out activities associated with the acquisition
and operation of zero emission vehicles (as defined in section 88.120-
94 of title 40, Code of Federal Regulations), including the
construction or modification of infrastructure to facilitate the
delivery of fuel and services necessary for the use of such vehicles.
Any use of funds authorized by the preceding sentence shall be
considered to be an authorized use of funds under section 47117 or
section 48103, or an authorized use of passenger facility revenue (as
defined in section 40117(a)(6)), as the case may be.
``(b) Location in Air Quality Nonattainment Areas.--
``(1) In general.--A public-use airport shall be eligible
for participation in the pilot program only if the airport is
located in an air quality nonattainment area (as defined in
section 171(2) of the Clean Air Act (42 U.S.C. 7501(2))).
``(2) Shortage of candidates.--If the Secretary receives an
insufficient number of applications from public-use airports
located in such areas, then the Secretary may consider
applications from public-use airports that are not located in
such areas.
``(c) Selection Criteria.--In selecting from among applicants for
participation in the program, the Secretary shall give priority
consideration to applicants that will achieve the greatest air quality
benefits measured by the amount of emissions reduced per dollar of
funds expended under the program.
``(d) Federal Share.--Notwithstanding any other provision of this
subchapter, the Federal share of the costs of a project carried out
under the program shall be 50 percent.
``(e) Technical Assistance.--
``(1) In general.--The sponsor of a public-use airport
carrying out activities funded under the program may not use
more than 10 percent of the amounts made available under the
program in any fiscal year for technical assistance in carrying
out such activities.
``(2) Eligible consortium.--To the maximum extent
practicable, participants in the program shall use an eligible
consortium (as defined in section 5506 of this title) in the
region of the airport to receive technical assistance described
in paragraph (1).
``(f) Materials Identifying Best Practices.--The Secretary may
develop and make available materials identifying best practices for
carrying out activities funded under the program based on projects
carried out under section 47136 and other sources.''.
(b) Report on Effectiveness of Program.--Not later than 18 months
after the date of enactment of this section, the Secretary of
Transportation shall transmit a report to the Senate Committee on
Commerce, Science, and Transportation the House of Representatives
Committee on Transportation and Infrastructure containing--
(1) an evaluation of the effectiveness of the pilot
program;
(2) an identification of all public-use airports that
expressed an interest in participating in the program; and
(3) a description of the mechanisms used by the Secretary
to ensure that the information and know-how gained by
participants in the program is transferred among the
participants and to other interested parties, including other
public-use airports.
(c) Conforming Amendment.--The chapter analysis for chapter 471 is
amended by inserting after the item relating to section 47136 the
following:

``47136A. Zero emission airport vehicles and infrastructure.''.

SEC. 610. REDUCTION OF EMISSIONS FROM AIRPORT POWER SOURCES.

(a) In General.--Subchapter I of chapter 471 is amended by
inserting after section 47140 the following:
``Sec. 47140A. Reduction of emissions from airport power sources
``(a) In General.--The Secretary of Transportation shall establish
a program under which the sponsor of each airport eligible to receive
grants under section 48103 is encouraged to assess the airport's energy
requirements, including heating and cooling, base load, back-up power,
and power for on-road airport vehicles and ground support equipment, in
order to identify opportunities to reduce harmful emissions and
increase energy efficiency at the airport.
``(b) Grants.--The Secretary may make grants under section 48103 to
assist airport sponsors that have completed the assessment described in
subsection (a) to acquire or construct equipment, including hydrogen
equipment and related infrastructure, that will reduce harmful
emissions and increase energy efficiency at the airport. To be eligible
for such a grant, the sponsor of such an airport shall submit an
application to the Secretary, at such time, in such manner, and
containing such information as the Secretary may require.''.
(b) Conforming Amendment.--The chapter analysis for chapter 471 is
amended by inserting after the item relating to section 47140 the
following:

``47140A. Reduction of emissions from airport power sources.''.

TITLE VII--MISCELLANEOUS

SEC. 701. GENERAL AUTHORITY.

(a) Third Party Liability.--Section 44303(b) is amended by striking
``December 31, 2006,'' and inserting ``December 31, 2012,''.
(b) Extension of Program Authority.--Section 44310 is amended by
striking ``March 30, 2008.'' and inserting ``October 1, 2017.''.

SEC. 702. HUMAN INTERVENTION MANAGEMENT STUDY.

Within 6 months after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration shall develop a
Human Intervention Management Study program for cabin crews employed by
commercial air carriers in the United States.

SEC. 703. AIRPORT PROGRAM MODIFICATIONS.

The Administrator of the Federal Aviation Administration--
(1) shall establish a formal, structured certification
training program for the airport concessions disadvantaged
business enterprise program; and
(2) may appoint 3 additional staff to implement the
programs of the airport concessions disadvantaged business
enterprise initiative.

SEC. 704. MISCELLANEOUS PROGRAM EXTENSIONS.

(a) Extension of Metropolitan Washington Airports Authority.--
Section 49108 is amended by striking ``2008,'' and inserting ``2011,''.
(b) Marshall Islands, Federated States of Micronesia, and Palau.--
Section 47115(j) is amended by striking ``2007,'' and inserting
``2011,''.
(c) Midway Island Airport.--Section 186(d) of the Vision 100--
Century of Aviation Reauthorization Act (17 Stat. 2518) is amended by
striking ``October 1, 2007,'' and inserting ``October 1, 2011,''.

SEC. 705. EXTENSION OF COMPETITIVE ACCESS REPORTS.

Section 47107(s) is amended by striking paragraph (3).

SEC. 706. UPDATE ON OVERFLIGHTS.

(a) In General.--Section 45301(b) is amended to read as follows:
``(b) Limitations.--
``(1) In general.--In establishing fees under subsection
(a), the Administrator shall ensure that the fees required by
subsection (a) are reasonably related to the Administration's
costs, as determined by the Administrator, of providing the
services rendered. Services for which costs may be recovered
include the costs of air traffic control, navigation, weather
services, training, and emergency services which are available
to facilitate safe transportation over the United States, and
other services provided by the Administrator or by programs
financed by the Administrator to flights that neither take off
nor land in the United States. The determination of such costs
by the Administrator is not subject to judicial review.
``(2) Adjustment of fees.--The Administrator shall adjust
the overflight fees established by subsection (a)(1) by
expedited rulemaking and begin collections under the adjusted
fees by October 1, 2009. In developing the adjusted overflight
fees, the Administrator shall seek and consider the
recommendations, if any, offered by the Aviation Rulemaking
Committee for Overflight Fees that are intended to ensure that
overflight fees are reasonably related to the Administrator's
costs of providing air traffic control and related services to
overflights. In addition, the Administrator may periodically
modify the fees established under this section either on the
Administrator's own initiative or on a recommendation from the
Air Traffic Control Modernization Board.
``(3) Cost data.--The adjustment of overflight fees under
paragraph (2) 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 Administration's cost accounting system and
cost allocation system to users, as well as budget and
operational data.
``(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 en
route or oceanic airspace.
``(5) Costs defined.--In this subsection, 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.
``(6) Publication; comment.--The Administrator shall
publish in the Federal Register any fee schedule under this
section, including any adjusted overflight fee schedule, and
the associated collection process as a proposed rule, pursuant
to which public comment will be sought and a final rule
issued.''.
(b) Administrative Provision.--Section 45303(c)(2) is amended to
read as follows:
``(2) shall be available to the Administrator for
expenditure for purposes authorized by Congress for the Federal
Aviation Administration, however, fees established by section
45301(a)(1) of title 49 of the United States Code shall be
available only to pay the cost of activities and services for
which the fee is imposed, including the costs to determine,
assess, review, and collect the fee; and''.

SEC. 707. TECHNICAL CORRECTIONS.

Section 40122(g), as amended by section 307 of this Act, is further
amended--
(1) by striking ``2302(b), relating to whistleblower
protection,'' in paragraph (2)(A) and inserting ``2302,'';
(2) by striking ``and'' after the semicolon in paragraph
(2)(H).
(3) by striking ``Plan.'' in paragraph (2)(I)(iii) and
inserting ``Plan; and'';
(4) by adding at the end of paragraph (2) the following:
``(J) sections 6381 through 6387, relating to
Family and Medical Leave.''; and
(5) by adding at the end of paragraph (3) ``Notwithstanding
any other provision of law, retroactive to April 1, 1996, the
Board shall have the same remedial authority over such employee
appeals that it had as of March 31, 1996.''.

SEC. 708. FAA TECHNICAL TRAINING AND STAFFING.

(a) Study.--
(1) In general.--The Comptroller General shall conduct a
study of the training of airway transportation systems
specialists of the Federal Aviation Administration that
includes--
(A) an analysis of the type of training provided to
such specialists;
(B) an analysis of the type of training that such
specialists need to be proficient in the maintenance of
the latest technologies;
(C) actions that the Administration has undertaken
to ensure that such specialists receive up-to-date
training on such technologies;
(D) the amount and cost of training provided by
vendors for such specialists;
(E) the amount and cost of training provided by the
Administration after developing in-house training
courses for such specialists;
(F) the amount and cost of travel required of such
specialists in receiving training; and
(G) a recommendation regarding the most cost-
effective approach to providing such training.
(2) Report.--Within 1 year after the date of enactment of
this Act, the Comptroller General shall transmit a report on
the study containing the Comptroller General's findings and
recommendations to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee
on Transportation and Infrastructure.
(b) Study by National Academy of Sciences.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall contract with the National
Academy of Sciences to conduct a study of the assumptions and
methods used by the Federal Aviation Administration to estimate
staffing needs for Federal Aviation Administration air traffic
controllers, system specialists, and engineers to ensure proper
maintenance, certification, and operation of the National
Airspace System. The National Academy of Sciences shall consult
with the Exclusive Bargaining Representative certified under
section 7111 of title 5, United States Code, and the
Administration (including the Civil Aeronautical Medical
Institute) and examine data entailing human factors, traffic
activity, and the technology at each facility.
(2) Contents.--The study shall include--
(A) recommendations for objective staffing
standards that maintain the safety of the National
Airspace System; and
(B) the approximate length of time for developing
such standards.
(3) Report.--Not later than 24 months after executing a
contract under subsection (a), the National Academy of Sciences
shall transmit a report containing its findings and
recommendations to the Congress.
(c) Safety Staffing Model.--Within 18 months after the date of
enactment of this Act, the Administrator of the Federal Aviation
Administration shall develop a staffing model for aviation safety
inspectors. In developing the model, the Administrator shall consult
with representatives of the aviation safety inspectors and other
interested parties.

SEC. 709. COMMERCIAL AIR TOUR OPERATORS IN NATIONAL PARKS.

(a) Secretary of the Interior and Overflights of National Parks.--
(1) Section 40128 is amended--
(A) by striking paragraph (8) of subsection (f);
(B) by striking ``Director'' each place it appears
and inserting ``Secretary of the Interior'';
(C) by striking ``National Park Service'' in
subsection (a)(2)(B)(vi) and inserting ``Department of
the Interior''; and
(D) by striking ``National Park Service'' in
subsection (b)(4)(C) and inserting ``Department of the
Interior''.
(2) The National Parks Air Tour Management Act of 2000 (49
U.S.C. 40128 note) is amended--
(A) by striking ``Director'' in section 804(b) and
inserting ``Secretary of the Interior'';
(B) in section 805--
(i) by striking ``Director of the National
Park Service'' in subsection (a) and inserting
``Secretary of the Interior'';
(ii) by striking ``Director'' each place it
appears and inserting ``Secretary of the
Interior'';
(iii) by striking ``National Park Service''
each place it appears in subsection (b) and
inserting ``Department of the Interior'';
(iv) by striking ``National Park Service''
in subsection (d)(2) and inserting ``Department
of the Interior''; and
(C) in section 807--
(i) by striking ``National Park Service''
in subsection (a)(1) and inserting ``Department
of the Interior''; and
(ii) by striking ``Director of the National
Park Service'' in subsection (b) and inserting
``Secretary of the Interior''.
(b) Allowing Overflights in Case of Agreement.--Paragraph (1) of
subsection (a) of section 40128 is amended--
(1) by striking ``and'' in subparagraph (B);
(2) by striking ``lands.'' in subparagraph (C) and
inserting ``lands; and''; and
(3) by adding at the end the following:
``(D) in accordance with a voluntary agreement
between the commercial air tour operator and
appropriate representatives of the national park or
tribal lands, as the case may be.''.
(c) Additional Exemptions to Air Tour Management Plans.--Subsection
(a) of section 40128 is further amended by adding at the end the
following:
``(5) Waiver for national parks with 100 or fewer
commercial air tour operations per year.--
``(A) In general.--Subject to subparagraph (B), and
without further administrative or environmental
process, the Secretary may waive the requirements of
this section with respect to a national park over which
100 or fewer commercial air tour operations are
conducted in a year.
``(B) Exception to waiver if necessary to protect
park resources.--
``(i) In general.--The Secretary may not
waive the requirements of this section if the
Secretary determines that an air tour
management plan is necessary to protect park
resources and values.
``(ii) Notice and publication.--The
Secretary shall inform the Administrator in
writing of the determinations under clause (i),
and the Secretary and the Administrator shall
publish in the Federal Register a list of the
national parks that fall under this
subparagraph.
``(6) Waiver with respect to voluntary agreements.--
``(A) In general.--The Secretary may waive the
requirements of this section if a commercial air tour
operator enters into a voluntary agreement with a
national park to manage commercial air tour operations
over the national park.
``(B) Purpose of voluntary agreements.--A voluntary
agreement described in subparagraph (A) shall seek to
protect park resources and visitor experiences without
compromising aviation safety, and may--
``(i) include provisions described in
subparagraph (B) through (E) of subsection
(b)(3);
``(ii) include provisions to ensure the
stability of, and compliance with, the
provisions of the voluntary agreement; and
``(iii) set forth a fee schedule for
operating over the national park.
``(C) Consultation.--Before entering into a
voluntary agreement described in subparagraph (A), a
national park shall consult with any Indian tribe over
whose tribal lands a commercial air tour operator may
conduct commercial air tour operations pursuant to the
voluntary agreement.
``(D) Review and approval by the secretary and the
administrator.--
``(i) Review.--Before executing a voluntary
agreement described in subparagraph (A), a
national park shall submit the voluntary
agreement to the Secretary and the
Administrator for review and approval.
``(ii) Approval.--Not later than 60 days
after receiving the agreement from the national
park, the Secretary and the Administrator shall
inform the national park of the determination
of the Secretary and the Administrator
regarding the approval of the agreement.
``(E) Rescission of voluntary agreement.--
``(i) By the secretary.--The Secretary may
rescind a voluntary agreement described in
subparagraph (A) if the Secretary determines
that the agreement does not adequately protect
park resources or visitor experiences.
``(ii) By the administrator.--The
Administrator may rescind a voluntary agreement
described in subparagraph (A) if the
Administrator determines that the agreement
adversely affects aviation safety or the
management of the national airspace system.
``(iii) Effect of rescission.--If the
Secretary or the Administrator rescinds a
voluntary agreement described in subparagraph
(A), the commercial air tour operator that was
a party to the agreement shall operate under
the requirements for interim operating
authority of subsection (c) until an air tour
management plan for the national park becomes
effective.''.
(d) Modification of Interim Operating Authority.--Subsection
(c)(2)(I) of section 40128 is amended to read as follows:
``(I) may allow for modifications of the interim
operating authority without further environmental
process, if--
``(i) adequate information on the existing
and proposed operations of the commercial air
tour operator is provided to the Administrator
and the Secretary by the operator seeking
operating authority;
``(ii) the Administrator determines that
the modifications would not adversely affect
aviation safety or the management of the
national airspace system; and
``(iii) the Secretary agrees that the
modifications would not adversely affect park
resources and visitor experiences.''.
(e) Reporting Requirements for Commercial Air Tour Operators.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, and annually thereafter, each
commercial air tour conducting commercial air tour operations
over a national park shall report to the Administrator of the
Federal Aviation Administration and the Secretary of the
Interior on--
(A) the number of commercial air tour operations
conducted by such operator over the national park each
day;
(B) any relevant characteristics of commercial air
tour operations, including the routes, altitudes,
duration, and time of day of flights; and
(C) such other information as the Administrator and
the Secretary may determine necessary to administer the
provisions of the National Parks Air Tour Management
Act of 2000 (49 U.S.C. 40128 note).
(2) Format.--The report required by paragraph (1) shall be
submitted in such form as the Administrator and the Secretary
determine to be appropriate.
(3) Effect of failure to report.--The Administrator shall
rescind the operating authority of a commercial air tour
operator that fails to file a report not later than 180 days
after the date for the submittal of the report described in
paragraph (1).
(4) Audit of reports.--Not later than 2 years after the
date of the enactment of this Act, and at such times thereafter
as the Inspector General of the Department of Transportation
determines necessary, the Inspector General shall audit the
reports required by paragraph (1).
(f) Collection of Fees From Air Tour Operations.--
(1) In general.--The Secretary of the Interior may assess a
fee in an amount determined by the Secretary under paragraph
(2) on a commercial air tour operator conducting commercial air
tour operations over a national park.
(2) Amount of fee.--In determining the amount of the fee
assessed under paragraph (1), the Secretary shall consider the
cost of developing air tour management plans for each national
park.
(3) Effect of failure to pay fee.--The Administrator of the
Federal Aviation Administration shall revoke the operating
authority of a commercial air tour operator conducting
commercial air tour operations over any national park,
including the Grand Canyon National Park, that has not paid the
fee assessed by the Secretary under paragraph (1) by the date
that is 180 days after the date on which the Secretary
determines the fee shall be paid.
(g) Authorization of Appropriations for Air Tour Management
Plans.--
(1) In general.--There are authorized to be appropriated
$10,000,000 to the Secretary of the Interior for the
development of air tour management plans under section 40128(b)
of title 49, United States Code.
(2) Use of funds.--The funds authorized to be appropriated
by paragraph (1) shall be used to develop air tour management
plans for the national parks the Secretary determines would
most benefit from such a plan.
(h) Guidance to District Offices on Commercial Air Tour
Operators.--The Administrator of the Federal Aviation Administration
shall provide to the Administration's district offices clear guidance
on the ability of commercial air tour operators to obtain--
(1) increased safety certifications;
(2) exemptions from regulations requiring safety
certifications; and
(3) other information regarding compliance with the
requirements of this Act and other Federal and State laws and
regulations.
(i) Operating Authority of Commercial Air Tour Operators.--
(1) Transfer of operating authority.--
(A) In general.--Subject to subparagraph (B), a
commercial air tour operator that obtains operating
authority from the Administrator under section 40128 of
title 49, United States Code, to conduct commercial air
tour operations may transfer such authority to another
commercial air tour operator at any time.
(B) Notice.--Not later than 30 days before the date
on which a commercial air tour operator transfers
operating authority under subparagraph (A), the
operator shall notify the Administrator and the
Secretary of the intent of the operator to transfer
such authority.
(C) Regulations.--Not later than 180 days after the
date of the enactment of this Act, the Administrator
shall prescribe regulations to allow transfers of
operating authority described in subparagraph (A).
(2) Time for determination regarding operating authority.--
Notwithstanding any other provision of law, the Administrator
shall determine whether to grant a commercial air tour operator
operating authority under section 40128 of title 49, United
States Code, not later than 180 days after the earlier of the
date on which--
(A) the operator submits an application; or
(B) an air tour management plan is completed for
the national park over which the operator seeks to
conduct commercial air tour operations.
(3) Increase in interim operating authority.--The
Administrator and the Secretary may increase the interim
operating authority while an air tour management plan is being
developed for a park if--
(A) the Secretary determines that such an increase
does not adversely impact park resources or visitor
experiences; and
(B) the Administrator determines that granting
interim operating authority does not adversely affect
aviation safety or the management of the national
airspace system.
(4) Enforcement of operating authority.--The Administrator
is authorized and directed to enforce the requirements of this
Act and any agency rules or regulations related to operating
authority.

SEC. 710. PHASEOUT OF STAGE 1 AND 2 AIRCRAFT.

(a) In General.--Subchapter II of chapter 475 is amended by adding
at the end the following:
``Sec. 47534. Prohibition on operating certain aircraft weighing 75,000
pounds or less not complying with Stage 3 noise levels
``(a) Prohibition.--Except as provided in subsection (b), (c), or
(d), a person may not operate a civil subsonic turbojet with a maximum
weight of 75,000 pounds or less to or from an airport in the United
States unless the Secretary of Transportation finds that the aircraft
complies with Stage 3 noise levels.
``(b) Exception.--Subsection (a) shall not apply to aircraft
operated only outside the 48 contiguous States.
``(c) Opt-Out.--Subsection (a) shall not apply at an airport where
the airport operator has notified the Secretary that it wants to
continue to permit the operation of civil subsonic turbojets with a
maximum weight of 75,000 pounds or less that do not comply with stage 3
noise levels. The Secretary shall post the notices received under this
subsection on its website or in another place easily accessible to the
public.
``(d) Limitation.--The Secretary shall permit a person to operate
Stage 1 and Stage 2 aircraft with a maximum weight of 75,000 pounds or
less to or from an airport in the contiguous 48 States in order--
``(1) to sell, lease, or use the aircraft outside the 48
contiguous States;
``(2) to scrap the aircraft;
``(3) to obtain modifications to the aircraft to meet stage
3 noise levels;
``(4) to perform scheduled heavy maintenance or significant
modifications on the aircraft at a maintenance facility located
in the contiguous 48 States;
``(5) to deliver the aircraft to an operator leasing the
aircraft from the owner or return the aircraft to the lessor;
``(6) to prepare or park or store the aircraft in
anticipation of any of the activities described in paragraphs
(1) through (5); or
``(7) to divert the aircraft to an alternative airport in
the 48 contiguous States on account of weather, mechanical,
fuel air traffic control or other safety reasons while
conducting a flight in order to perform any of the activities
described in paragraphs (1) through (6).
``(e) Statutory Construction.--Nothing in the section may be
construed as interfering with, nullifying, or otherwise affecting
determinations made by the Federal Aviation Administration, or to be
made by the Administration, with respect to applications under part 161
of title 14, Code of Federal Regulations, that were pending on the date
of enactment of the Aircraft Noise Reduction Act of 2006.''.
(b) Conforming Amendments.--
(1) Section 47531 is amended by striking ``47529, or
47530'' and inserting ``47529, 47530, or 47534''.
(2) Section 47532 is amended by striking ``47528-47531''
and inserting ``47528 through 47531 or 47534''.
(3) The chapter analysis for chapter 475 is amended by
inserting after the item relating to section 47533 the
following:

``47534. Prohibition on operating certain aircraft weighing 75,000
pounds or less not complying with stage 3
noise levels.''.
(c) Effective Date.--The amendments made by this section shall take
effect 5 years after the date of enactment of this Act.

SEC. 711. WEIGHT RESTRICTIONS AT TETERBORO AIRPORT.

On and after the date of the enactment of this Act, the
Administrator of the Federal Aviation Administration is prohibited from
taking actions designed to challenge or influence weight restrictions
or prior permission rules at Teterboro Airport in Teterboro, New
Jersey.

SEC. 712. PILOT PROGRAM FOR REDEVELOPMENT OF AIRPORT PROPERTIES.

(a) In General.--Within 1 year after the date of enactment of this
Act, the Administrator of the Federal Aviation Administration shall
establish a pilot program at up to 4 public-use airports for airport
sponsors that have submitted a noise compatibility program to the
Federal Aviation Administration, from funds apportioned under section
47504 or section 40117 of title 49, United States Code, in partnership
with affected neighboring local jurisdictions, to support joint
planning, engineering design, and environmental permitting for the
assembly and redevelopment of property purchased with noise mitigation
funds or passenger facility charge funds, to encourage airport-
compatible land uses and generate economic benefits to the local
airport authority and adjacent community.
(b) Noise Compatability Measures.--Section 47504(a)(2) is amended--
(1) by striking ``and'' after the semicolon in subparagraph
(D);
(2) by striking ``operations.'' in subparagraph (E) and
inserting ``operations;''; and
(3) by adding at the end the following:
``(F) joint comprehensive land use planning including
master plans, traffic studies, environmental evaluation and
economic and feasibility studies, with neighboring local
jurisdictions undertaking community redevelopment in the area
where the land or other property interests acquired by the
airport operator pursuant to this subsection is located, to
encourage and enhance redevelopment opportunities that reflect
zoning and uses that will prevent the introduction of
additional incompatible uses and enhance redevelopment
potential; and
``(G) utility upgrades and other site preparation
efforts.''.
(c) Grant Requirements.--The Administrator may not make a grant
under subsection (a) unless the grant is made--
(1) to enable the airport operator and local jurisdictions
undertaking the community redevelopment effort to expedite
redevelopment efforts;
(2) subject to a requirement that the local jurisdiction
governing the property interests in question has adopted zoning
regulations that permit airport compatible redevelopment; and
(3) subject to a requirement that, in determining the part
of the proceeds from disposing of the land that is subject to
repayment or reinvestment under section 47107(c)(2)(A) of title
49, United States Code, the total amount of the grant issued
under this section shall be added to the amount of any grants
issued for acquisition of land.
(d) Demonstration Grants.--
(1) In general.--The Administrator shall provide grants
under subsection (a) for demonstration projects distributed
geographically and targeted to airports that demonstrate--
(A) a readiness to implement cooperative land use
management and redevelopment plans with the adjacent
community; and
(B) the probability of clear economic benefit to
the local community and financial return to the airport
through the implementation of the redevelopment plan.
(2) Federal share.--
(A) Notwithstanding any other provision of law, the
Federal share of the allowable costs of a project
carried out under the pilot program shall be 80
percent.
(B) In determining the allowable costs, the
Administrator shall deduct from the total costs of the
activities described in subsection (a) that portion of
the costs which is equal to that portion of the total
property to be redeveloped under this section that is
not owned or to be acquired by the airport operator
pursuant to the noise compatibility program or that is
not owned by the affected neighboring local
jurisdictions or other public entities.
(3) Maximum amount.--Not more than $5,000,000 in funds made
available under section 47117(e) of title 49, United States
Code, may be expended under the pilot program at any single
public-use airport.
(4) Exception.--Amounts paid to the Administrator under
subsection (c)(3)--
(A) shall be in addition to amounts authorized
under section 48203 of title 49, United States Code;
(B) shall not be subject to any limitation on grant
obligations for any fiscal year; and
(C) shall remain available until expended.
(e) Use of Passenger Revenue.--An airport sponsor that owns or
operates an airport participating in the pilot program may use
passenger facility revenue collected under section 40117 of title 49,
United States Code, to pay any project cost described in subsection (a)
that is not financed by a grant under the program.
(f) Sunset.--This section, other than the amendments made by
subsections (b), shall not be in effect after September 30, 2011.
(g) Report to Congress.--The Administrator shall report to Congress
within 18 months after making the first grant under this section on the
effectiveness of this program on returning Part 150 lands to productive
use.

SEC. 713. AIR CARRIAGE OF INTERNATIONAL MAIL.

(a) Contracting Authority.--Section 5402 of title 39, United States
Code, is amended by striking subsections (b) and (c) and inserting the
following:
``(b) International Mail.--
``(1) In general.--
``(A) Except as otherwise provided in this
subsection, the Postal Service may contract for the
transportation of mail by aircraft between any of the
points in foreign air transportation only with
certificated air carriers. A contract may be awarded to
a certificated air carrier to transport mail by air
between any of the points in foreign air transportation
that the Secretary of Transportation has authorized the
carrier to serve either directly or through a code-
share relationship with one or more foreign air
carriers.
``(B) If the Postal Service has sought offers or
proposals from certificated air carriers to transport
mail in foreign air transportation between points, or
pairs of points within a geographic region or regions,
and has not received offers or proposals that meet
Postal Service requirements at a fair and reasonable
price from at least 2 such carriers, the Postal Service
may seek offers or proposals from foreign air carriers.
Where service in foreign air transportation meeting the
Postal Service's requirements is unavailable at a fair
and reasonable price from at least 2 certificated air
carriers, either directly or through a code-share
relationship with one or more foreign air carriers, the
Postal Service may contract with foreign air carriers
to provide the service sought if, when the Postal
Service seeks offers or proposals from foreign air
carriers, it also seeks an offer or proposal to provide
that service from any certificated air carrier
providing service between those points, or pairs of
points within a geographic region or regions, on the
same terms and conditions that are being sought from
foreign air carriers.
``(C) For purposes of this subsection, the Postal
Service shall use a methodology for determining fair
and reasonable prices for the Postal Service designated
region or regions developed in consultation with, and
with the concurrence of, certificated air carriers
representing at least 51 percent of available ton miles
in the markets of interest.
``(D) For purposes of this subsection, ceiling
prices determined pursuant to the methodology used
under subparagraph (C) shall be presumed to be fair and
reasonable if they do not exceed the ceiling prices
derived from--
``(i) a weighted average based on market
rate data furnished by the International Air
Transport Association or a subsidiary unit
thereof; or
``(ii) if such data are not available from
those sources, such other neutral, regularly
updated set of weighted average market rates as
the Postal Service, with the concurrence of
certificated air carriers representing at least
51 percent of available ton miles in the
markets of interest, may designate.
``(E) If, for purposes of subparagraph (D)(ii),
concurrence cannot be attained, then the most recently
available market rate data described in this
subparagraph shall continue to apply for the relevant
market or markets.
``(2) Contract process.--The Postal Service shall contract
for foreign air transportation as set forth in paragraph (1)
through an open procurement process that will provide--
``(A) potential offerors with timely notice of
business opportunities in sufficient detail to allow
them to make a proposal;
``(B) requirements, proposed terms and conditions,
and evaluation criteria to potential offerors; and
``(C) an opportunity for unsuccessful offerors to
receive prompt feedback upon request.
``(3) Emergency or unanticipated conditions; inadequate
lift space.--The Postal Service may enter into contracts to
transport mail by air in foreign air transportation with a
certificated air carrier or a foreign air carrier without
complying with the requirements of paragraphs (b)(1) and (2)
if--
``(A) emergency or unanticipated conditions exist
that make it impractical for the Postal Service to
comply with such requirements; or
``(B) its demand for lift exceeds the space
available to it under existing contracts and--
``(i) there is insufficient time available
to seek additional lift using procedures that
comply with those requirements without
compromising the Postal Service's service
commitments to its own customers; and
``(ii) the Postal Service first offers any
certificated air carrier holding a contract to
carry mail between the relevant points the
opportunity to carry such excess volumes under
the terms of its existing contract.
``(c) Good Faith Effort Required.--The Postal Service and potential
offerors shall put a good-faith effort into resolving disputes
concerning the award of contracts made under subsection (b).''.
(b) Conforming Amendments to Title 49.--
(1) Section 41901(a) is amended by striking ``39.'' and
inserting ``39, and in foreign air transportation under section
5402(b) and (c) of title 39.''.
(2) Section 41901(b)(1) is amended by striking ``in foreign
air transportation or''.
(3) Section 41902 is amended--
(A) by striking ``in foreign air transportation
or'' in subsection (a);
(B) by striking subsection (b) and inserting the
following:
``(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 paragraph (1) and every
change in each schedule; and
``(3) for each schedule, the places served by the carrier
and the time of arrival at, and departure from, each such
place.'';
(C) by striking ``subsection (b)(3)'' each place it
appears in subsections (c)(1) and (d) and inserting
``subsection (b)(2)''; and
(D) by striking subsections (e) and (f).
(4) Section 41903 is amended by striking ``in foreign air
transportation or'' each place it appears.
(5) Section 41904 is amended--
(A) by striking ``to or in foreign countries'' in
the section heading;
(B) by striking ``to or in a foreign country'' and
inserting ``between two points outside the United
States''; and
(C) by inserrting after ``transportation.'' the
following: ``Nothing in this section shall affect the
authority of the Postal Service to make arrangements
with noncitizens for the carriage of mail in foreign
air transportation under subsections 5402(b) and (c) of
title 39.''.
(6) Section 41910 is amended by striking the first sentence
and inserting ``The United States Postal Service may weigh mail
transported by aircraft between places in Alaska and make
statistical and -administrative computations necessary in the
interest of mail service.''.
(7) Chapter 419 is amended--
(A) by striking sections 41905, 41907, 41908, and
41911; and
(B) redesignating sections 41906, 41909, 41910, and
49112 as sections 41905, 41906, 41907, and 41908,
respectively.
(8) The chapter analysis for chapter 419 is amended by
redesignating the items relating to sections 41906, 41909,
41910, and 49112 as relating to sections 41905, 41906, 41907,
and 41908, respectively.
(9) Section 101(f) of title 39, United States Code, is
amended by striking ``mail and shall make a fair and equitable
distribution of mail business to carriers providing similar
modes of transportation services to the Postal Service.'' and
inserting ``mail.''.
(9) Subsections (b) and (c) of section 3401 of title 39,
United States Code, are amended--
(A) by striking ``at rates fixed and determined by
the Secretary of Transportation in accordance with
section 41901 of title 49'' and inserting ``or, for
carriage of mail in foreign air transportation, other
air carriers, air taxi operators or foreign air
carriers as permitted by section 5402 of this title'';
(B) by striking ``at rates not to exceed those so
fixed and determined for scheduled United States air
carriers'';
(C) by striking ``scheduled'' each place it appears
and inserting ``certificated''; and
(D) by striking the last sentence in each such
subsection.
(10) Section 5402(a) of title 39, United States Code, is
amended--
(A) by inserting ```foreign air carrier'.'' after
```interstate air transportation','' in paragraph (2);
(B) by redesignating paragraphs (7) through (23) as
paragraphs (8) through (24) and inserting after
paragraph (6) the following:
``(7) the term `certificated air carrier' means an air
carrier that holds a certificate of public convenience and
necessity issued under section 41102(a) of title 49;''; and
(C) by redesignating paragraphs (9) through (24),
as redesignated, as paragraphs (10) through (25),
respectively, and inserting after paragraph (8) the
following:
``(9) the term `code-share relationship' means a
relationship pursuant to which any certificated air carrier or
foreign air carrier's designation code is used to identify a
flight operated by another air carrier or foreign air
carrier;''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2008.

SEC. 714. TRANSPORTING MUSICAL INSTRUMENTS.

(a) In General.--Subchapter I of chapter 417 is amended by adding
at the end thereof the following:
``Sec. 41724. Musical instruments
``(a) In General.--
``(1) Small instruments as carry-on baggage.--An air
carrier providing air transportation shall permit a passenger
to carry a violin, guitar, or other musical instrument in the
aircraft cabin without charge if--
``(A) the instrument can be stowed safely in a
suitable baggage compartment in the aircraft cabin or
under a passenger seat; and
``(B) there is space for such stowage at the time
the passenger boards the aircraft.
``(2) Larger instruments as carry-on baggage.--An air
carrier providing air transportation shall permit a passenger
to carry a musical instrument that is too large to meet the
requirements of paragraph (1) in the aircraft cabin without
charge if--
``(A) the instrument is contained in a case or
covered so as to avoid injury to other passengers;
``(B) the weight of the instrument, including the
case or covering, does not exceed 165 pounds;
``(C) the instrument can be secured by a seat belt
to avoid shifting during flight;
``(D) the instrument does not restrict access to,
or use of, any required emergency exit, regular exit,
or aisle;
``(E) the instrument does not obscure any
passenger's view of any illuminated exit, warning, or
other informational sign;
``(F) neither the instrument nor the case contains
any object not otherwise permitted to be carried in an
aircraft cabin because of a law or regulation of the
United States; and
``(G) the passenger wishing to carry the instrument
in the aircraft cabin has purchased an additional seat
to accommodate the instrument.
``(3) Large instruments as checked baggage.--An air carrier
shall transport as baggage, without charge, a musical
instrument that is the property of a passenger traveling in air
transportation that may not be carried in the aircraft cabin
if--
``(A) the sum of the length, width, and height
measured in inches of the outside linear dimensions of
the instrument (including the case) does not exceed 120
inches; and
``(B) the weight of the instrument does not exceed
100 pounds.
``(b) Regulations.--The Secretary may prescribe such regulations as
may be necessary or appropriate to implement subsection (a).''.
(b) Conforming Amendment.--The chapter analysis for chapter 417 is
amended by inserting after the item relating to section 41723 the
following:

``41724. Musical instruments.''.
(c) Effective Date.--The amendments made by this section shall take
effect 30 days after the date of enactment of this Act.

SEC. 715. RECYCLING PLANS FOR AIRPORTS.

(a) Airport Planning.--section 47102(5) is amended by striking
``planning.'' and inserting ``planning and a plan for recycling and
minimizing the generation of airport solid waste, consistent with
applicable State and local recycling laws, including the cost of a
waste audit.''.
(b) Master Plan.--Section 47106(a) is amended--
(1) by striking ``and'' at the end of paragraph (4);
(2) by striking ``proposed.'' in paragraph (5) and
inserting ``proposed; and''; and
(3) by adding at the end the following:
``(6) if the project is for an airport that has an airport
master plan, the master plan addresses--
``(A) the feasibility of solid waste recycling at
the airport;
``(B) minimizing the generation of solid waste at
the airport;
``(C) operation and maintenance requirements;
``(D) the review of waste management contracts;
``(E) the potential for cost savings or the
generation of revenue; and
``(F) training and education requirements.''.

SEC. 716. CONSUMER INFORMATION PAMPHLET.

Within 6 months after the date of enactment of this Act, the
Secretary of Transportation shall develop and make available to the
public in written and electronic form a consumer and parental
information pamphlet that includes--
(1) a summary of the unaccompanied minor policies of major
air carriers serving United States airports;
(2) a summary of such carriers' policies pertaining to
passenger air travel by children aged 17 and under;
(3) recommendations to parents about who the appropriate
authorities are to notify if a minor is traveling unsupervised
and without parental consent on a major air carrier; and
(4) any additional recommendations the Secretary deems
appropriate or necessary.

TITLE VIII--AMERICAN INFRASTRUCTURE INVESTMENT AND IMPROVEMENT

SECTION 800. SHORT TITLE, ETC.

(a) Short Title; Amendment of 1986 Code.--This title may be cited
as the ``American Infrastructure Investment and Improvement Act of
2008''.
(b) 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 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. 801. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY TRUST FUND.

(a) Fuel Taxes.--Subparagraph (B) of section 4081(d)(2) is amended
by striking ``June 30, 2008'' and inserting ``September 30, 2011''.
(b) Ticket Taxes.--
(1) Persons.--Clause (ii) of section 4261(j)(1)(A) is
amended by striking ``June 30, 2008'' and inserting ``September
30, 2011''.
(2) Property.--Clause (ii) of section 4271(d)(1)(A) is
amended by striking ``June 30, 2008'' and inserting ``September
30, 2011''.
(c) Effective Date.--The amendments made by this section shall take
effect on July 1, 2008.

SEC. 802. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE
AUTHORITY.

(a) In General.--Paragraph (1) of section 9502(d) is amended--
(1) by striking ``July 1, 2008'' in the matter preceding
subparagraph (A) and inserting ``October 1, 2011'', and
(2) by striking the semicolon at the end of subparagraph
(A) and inserting ``or the Aviation Investment and
Modernization Act of 2008;''.
(b) Conforming Amendment.--Paragraph (2) of section 9502(e) is
amended by striking ``July 1, 2008'' and inserting ``October 1, 2011''.
(c) Effective Date.--The amendments made by this section shall take
effect on July 1, 2008.

SEC. 803. MODIFICATION OF EXCISE TAX ON KEROSENE USED IN AVIATION.

(a) Rate of Tax on Aviation-Grade Kerosene.--
(1) In general.--Subparagraph (A) of section 4081(a)(2)
(relating to rates of tax) is amended by striking ``and'' at
the end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, and'', and by adding at the end
the following new clause:
``(iv) in the case of aviation-grade
kerosene, 35.9 cents per gallon.''.
(2) Fuel removed directly into fuel tank of airplane used
in noncommercial aviation.--Subparagraph (C) of section
4081(a)(2) is amended to read as follows:
``(C) Taxes imposed on fuel used in commercial
aviation.--In the case of aviation-grade kerosene which
is removed from any refinery or terminal directly into
the fuel tank of an aircraft for use in commercial
aviation by a person registered for such use under
section 4101, the rate of tax under subparagraph
(A)(iv) shall be 4.3 cents per gallon.''.
(3) Exemption for aviation-grade kerosene removed into an
aircraft.--Subsection (e) of section 4082 is amended--
(A) by striking ``kerosene'' and inserting
``aviation-grade kerosene'',
(B) by striking ``section 4081(a)(2)(A)(iii)'' and
inserting ``section 4081(a)(2)(A)(iv)'', and
(C) by striking ``Kerosene'' in the heading and
inserting ``Aviation-Grade Kerosene''.
(4) Conforming amendments.--
(A) Clause (iii) of section 4081(a)(2)(A) is
amended by inserting ``other than aviation-grade
kerosene'' after ``kerosene''.
(B) The following provisions are each amended by
striking ``kerosene'' and inserting ``aviation-grade
kerosene'':
(i) Section 4081(a)(3)(A)(ii).
(ii) Section 4081(a)(3)(A)(iv).
(iii) Section 4081(a)(3)(D).
(C) Section 4081(a)(3)(D) is amended--
(i) by striking ``paragraph (2)(C)(i)'' in
clause (i) and inserting ``paragraph (2)(C)'',
and
(ii) by striking ``paragraph (2)(C)(ii)''
in clause (ii) and inserting ``paragraph
(2)(A)(iv)''.
(D) Section 4081(a)(4) is amended--
(i) in the heading by striking ``kerosene''
and inserting ``aviation-grade kerosene'', and
(ii) by striking ``paragraph (2)(C)(i)''
and inserting ``paragraph (2)(C)''.
(E) Section 4081(d)(2) is amended by striking
``(a)(2)(C)(ii)'' and inserting ``(a)(2)(A)(iv)''.
(b) Retail Tax on Aviation Fuel.--
(1) Exemption for previously taxed fuel.--Paragraph (2) of
section 4041(c) is amended by inserting ``at the rate specified
in subsection (a)(2)(A)(iv) thereof'' after ``section 4081''.
(2) Rate of tax.--Paragraph (3) of section 4041(c) is
amended to read as follows:
``(3) Rate of tax.--The rate of tax imposed by this
subsection shall be the rate of tax in effect under section
4081(a)(2)(A)(iv) (4.3 cents per gallon with respect to any
sale or use for commercial aviation).''.
(c) Refunds Relating to Aviation-Grade Kerosene.--
(1) Kerosene used in commercial aviation.--Clause (ii) of
section 6427(l)(4)(A) is amended by striking ``specified in
section 4041(c) or 4081(a)(2)(A)(iii), as the case may be,''
and inserting ``so imposed''.
(2) Kerosene used in aviation.--Paragraph (4) of section
6427(l) is amended--
(A) by striking subparagraph (B) and redesignating
subparagraph (C) as subparagraph (B), and
(B) by amending subparagraph (B), as redesignated
by subparagraph (A), to read as follows:
``(B) Payments to ultimate, registered vendor.--
With respect to any kerosene used in aviation (other
than kerosene to which paragraph (6) applies), if the
ultimate purchaser of such kerosene waives (at such
time and in such form and manner as the Secretary shall
prescribe) the right to payment under paragraph (1) and
assigns such right to the ultimate vendor, then the
Secretary shall pay (without interest) the amount which
would be paid under paragraph (1) to such ultimate
vendor, but only if such ultimate vendor--
``(i) is registered under section 4101, and
``(ii) meets the requirements of
subparagraph (A), (B), or (D) of section
6416(a)(1).''.
(3) Aviation-grade kerosene not used in aviation.--
Subsection (l) of section 6427 is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after paragraph
(4) the following new paragraph:
``(5) Refunds for aviation-grade kerosene not used in
aviation.--If tax has been imposed under section 4081 at the
rate specified in section 4081(a)(2)(A)(iv) and the fuel is
used other than in an aircraft, the Secretary shall pay
(without interest) to the ultimate purchaser of such fuel an
amount equal to the amount of tax imposed on such fuel reduced
by the amount of tax that would be imposed under section 4041
if no tax under section 4081 had been imposed.''.
(4) Conforming amendments.--
(A) Section 4082(d)(2)(B) is amended by striking
``6427(l)(5)(B)'' and inserting ``6427(l)(6)(B)''.
(B) Section 6427(i)(4) is amended--
(i) by striking ``(4)(C)'' the first two
places it occurs and inserting ``(4)(B)'', and
(ii) by striking ``, (l)(4)(C)(ii), and''
and inserting ``and''.
(C) The heading of section 6427(l) is amended by
striking ``Diesel Fuel and Kerosene'' and inserting
``Diesel Fuel, Kerosene, and Aviation Fuel''.
(D) Section 6427(l)(1) is amended by striking
``paragraph (4)(C)(i)'' and inserting ``paragraph
(4)(B)''.
(E) Section 6427(l)(4) is amended--
(i) by striking ``kerosene used in
aviation'' in the heading and inserting
``aviation-grade kerosene used in commercial
aviation'', and
(ii) in subparagraph (A)--
(I) by striking ``kerosene'' and
inserting ``aviation-grade kerosene'',
(II) by striking ``Kerosene used in
commercial aviation'' in the heading
and inserting ``In general''.
(d) Transfers to the Airport and Airway Trust Fund.--
(1) In general.--Subparagraph (C) of section 9502(b)(1) is
amended to read as follows:
``(C) section 4081 with respect to aviation
gasoline and aviation-grade kerosene, and''.
(2) Transfers on account of certain refunds.--
(A) In general.--Subsection (d) of section 9502 is
amended--
(i) in paragraph (2) by striking ``(other
than subsection (l)(4) thereof)'', and
(ii) in paragraph (3) by striking ``(other
than payments made by reason of paragraph (4)
of section 6427(l))''.
(B) Conforming amendments.--
(i) Section 9503(b)(4) is amended by
striking ``or'' at the end of subparagraph (C),
by striking the period at the end of
subparagraph (D) and inserting a comma, and by
inserting after subparagraph (D) the following:
``(E) section 4081 to the extent attributable to
the rate specified in clause (ii) or (iv) of section
4081(a)(2)(A), or
``(F) section 4041(c).''.
(ii) Section 9503(c) is amended by striking
the last paragraph (relating to transfers from
the Trust Fund for certain aviation fuel
taxes).
(iii) Section 9502(a) is amended--
(I) by striking ``appropriated,
credited, or paid into'' and inserting
``appropriated or credited to'', and
(II) by striking ``, section
9503(c)(7),''.
(e) Effective Date.--The amendments made by this section shall
apply to fuels removed, entered, or sold after December 31, 2008.
(f) Floor Stocks Tax.--
(1) Imposition of tax.--In the case of aviation fuel which
is held on January 1, 2009, by any person, there is hereby
imposed a floor stocks tax on aviation fuel equal to--
(A) the tax which would have been imposed before
such date on such fuel had the amendments made by this
section been in effect at all times before such date,
reduced by
(B) the sum of--
(i) the tax imposed before such date on
such fuel under section 4081 of the Internal
Revenue Code of 1986, as in effect on such
date, and
(ii) in the case of kerosene held
exclusively for such person's own use, the
amount which such person would (but for this
clause) reasonably expect (as of such date) to
be paid as a refund under section 6427(l) of
such Code with respect to such kerosene.
(2) Liability for tax and method of payment.--
(A) Liability for tax.--A person holding aviation
fuel on January 1, 2009, shall be liable for such tax.
(B) Time and method of payment.--The tax imposed by
paragraph (1) shall be paid at such time and in such
manner as the Secretary of the Treasury shall
prescribe.
(3) Transfer of floor stock tax revenues to trust funds.--
For purposes of determining the amount transferred to the
Airport and Airway Trust Fund, the tax imposed by this
subsection shall be treated as imposed by section
4081(a)(2)(A)(iv) of the Internal Revenue Code of 1986.
(4) Definitions.--For purposes of this subsection--
(A) Aviation fuel.--The term ``aviation fuel''
means aviation-grade kerosene and aviation gasoline, as
such terms are used within the meaning of section 4081
of the Internal Revenue Code of 1986.
(B) Held by a person.--Aviation fuel shall be
considered as held by a person if title thereto has
passed to such person (whether or not delivery to the
person has been made).
(C) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury or the Secretary's delegate.
(5) Exception for exempt uses.--The tax imposed by
paragraph (1) shall not apply to any aviation fuel held by any
person exclusively for any use to the extent a credit or refund
of the tax is allowable under the Internal Revenue Code of 1986
for such use.
(6) Exception for certain amounts of fuel.--
(A) In general.--No tax shall be imposed by
paragraph (1) on any aviation fuel held on January 1,
2009, by any person if the aggregate amount of such
aviation fuel held by such person on such date does not
exceed 2,000 gallons. The preceding sentence shall
apply only if such person submits to the Secretary (at
the time and in the manner required by the Secretary)
such information as the Secretary shall require for
purposes of this subparagraph.
(B) Exempt fuel.--For purposes of subparagraph (A),
there shall not be taken into account any aviation fuel
held by any person which is exempt from the tax imposed
by paragraph (1) by reason of paragraph (6).
(C) Controlled groups.--For purposes of this
subsection--
(i) Corporations.--
(I) In general.--All persons
treated as a controlled group shall be
treated as 1 person.
(II) Controlled group.--The term
``controlled group'' has the meaning
given to such term by subsection (a) of
section 1563 of the Internal Revenue
Code of 1986; except that for such
purposes the phrase ``more than 50
percent'' shall be substituted for the
phrase ``at least 80 percent'' each
place it appears in such subsection.
(ii) Nonincorporated persons under common
control.--Under regulations prescribed by the
Secretary, principles similar to the principles
of subparagraph (A) shall apply to a group of
persons under common control if 1 or more of
such persons is not a corporation.
(7) Other laws applicable.--All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 4081 of the Internal Revenue Code of 1986 on
the aviation fuel involved shall, insofar as applicable and not
inconsistent with the provisions of this subsection, apply with
respect to the floor stock taxes imposed by paragraph (1) to
the same extent as if such taxes were imposed by such section.

SEC. 804. AIR TRAFFIC CONTROL SYSTEM MODERNIZATION ACCOUNT.

(a) In General.--Section 9502 (relating to the Airport and Airway
Trust Fund) is amended by adding at the end the following new
subsection:
``(g) Establishment of Air Traffic Control System Modernization
Account.--
``(1) Creation of account.--There is established in the
Airport and Airway Trust Fund a separate account to be known as
the `Air Traffic Control System Modernization Account'
consisting of such amounts as may be transferred or credited to
the Air Traffic Control System Modernization Account as
provided in this subsection or section 9602(b).
``(2) Transfers to air traffic control system modernization
account.--On October 1, 2008, and annually thereafter, the
Secretary shall transfer to the Air Traffic Control System
Modernization Account from amounts appropriated to the Airport
and Airway Trust Fund under subsection (b) which are
attributable to taxes on aviation-grade kerosene an amount
equal to $400,000,000.
``(3) Expenditures from account.--Amounts in the Air
Traffic Control System Modernization Account shall be available
subject to appropriation for expenditures relating to the
modernization of the air traffic control system (including
facility and equipment account expenditures).''.
(b) Conforming Amendment.--Section 9502(d)(1) is amended by
striking ``Amounts'' and inserting ``Except as provided in subsection
(g), amounts''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.

SEC. 805. TREATMENT OF FRACTIONAL AIRCRAFT OWNERSHIP PROGRAMS.

(a) Fuel Surtax.--
(1) In general.--Subchapter B of chapter 31 is amended by
adding at the end the following new section:

``SEC. 4043. SURTAX ON FUEL USED IN AIRCRAFT PART OF A FRACTIONAL
OWNERSHIP PROGRAM.

``(a) In General.--There is hereby imposed a tax on any liquid used
during any calendar quarter by any person as a fuel in an aircraft
which is--
``(1) registered in the United States, and
``(2) part of a fractional ownership aircraft program.
``(b) Amount of Tax.--The rate of tax imposed by subsection (a) is
14.1 cents per gallon.
``(c) Fractional Ownership Aircraft Program.--For purposes of this
section--
``(1) In general.--The term `fractional ownership aircraft
program' means a program under which--
``(A) a single fractional ownership program manager
provides fractional ownership program management
services on behalf of the fractional owners,
``(B) 2 or more airworthy aircraft are part of the
program,
``(C) there are 1 or more fractional owners per
program aircraft, with at least 1 program aircraft
having more than 1 owner,
``(D) each fractional owner possesses at least a
minimum fractional ownership interest in 1 or more
program aircraft,
``(E) there exists a dry-lease exchange arrangement
among all of the fractional owners, and
``(F) there are multi-year program agreements
covering the fractional ownership, fractional ownership
program management services, and dry-lease aircraft
exchange aspects of the program.
``(2) Minimum fractional ownership interest.--The term
`minimum fractional ownership interest' means, with respect to
each type of aircraft--
``(A) a fractional ownership interest equal to or
greater than \1/16\ of at least 1 subsonic, fixed wing
or powered lift program aircraft, or
``(B) a fractional ownership interest equal to or
greater than \1/32\ of a least 1 rotorcraft program
aircraft.
``(3) Dry-lease exchange arrangement.--A `dry-lease
aircraft exchange' means an agreement, documented by the
written program agreements, under which the program aircraft
are available, on an as needed basis without crew, to each
fractional owner.
``(d) Termination.--This section shall not apply to liquids used as
a fuel in an aircraft after September 30, 2011.''.
(2) Conforming amendment.--Section 4082(e) is amended by
inserting ``(other than an aircraft described in section
4043(a))'' after ``an aircraft''.
(3) Transfer of revenues to airport and airway trust
fund.--Section 9502(b)(1) is amended by redesignating
subparagraphs (B) and (C) as subparagraphs (C) and (D),
respectively, and by inserting after subparagraph (A) the
following new subparagraph:
``(B) section 4043 (relating to surtax on fuel used
in aircraft part of a fractional ownership program),''.
(4) Clerical amendment.--The table of sections for
subchapter B of chapter 31 is amended by adding at the end the
following new item:

``Sec. 4043. Surtax on fuel used in aircraft part of a fractional
ownership program.''.
(b) Fractional Ownership Programs Treated as Non-Commercial
Aviation.--Subsection (b) of section 4083 is amended by adding at the
end the following new sentence: ``Such term shall not include the use
of any aircraft which is part of a fractional ownership aircraft
program (as defined by section 4043(c)).''.
(c) Exemption From Tax on Transportation of Persons.--Section 4261,
as amended by this Act, is amended by redesignating subsection (j) as
subsection (k) and by inserting after subsection (i) the following new
subsection:
``(j) Exemption for Aircraft in Fractional Ownership Aircraft
Programs.--No tax shall be imposed by this section or section 4271 on
any air transportation by an aircraft which is part of a fractional
ownership aircraft program (as defined by section 4043(c)).''.
(d) Effective Dates.--
(1) Subsection (a).--The amendments made by subsections (a)
shall apply to fuel used after December 31, 2008.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to uses of aircraft after December 31, 2008.
(3) Subsection (c).--The amendments made by subsection (c)
shall apply to taxable transportation provided after December
31, 2008.

SEC. 806. TERMINATION OF EXEMPTION FOR SMALL AIRCRAFT ON NONESTABLISHED
LINES.

(a) In General.--Section 4281 is amended to read as follows:

``SEC. 4281. SMALL AIRCRAFT OPERATED SOLELY FOR SIGHTSEEING.

``The taxes imposed by sections 4261 and 4271 shall not apply to
transportation by an aircraft having a maximum certificated takeoff
weight of 6,000 pounds or less at any time during which such aircraft
is being operated on a flight the sole purpose of which is sightseeing.
For purposes of the preceding sentence, the term `maximum certificated
takeoff weight' means the maximum such weight contained in the type
certificate or airworthiness certificate.''.
(b) Conforming Amendment.--The item relating to section 4281 in the
table of sections for part III of subchapter C of chapter 33 is amended
by striking ``on nonestablished lines'' and inserting ``operated solely
for sightseeing''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable transportation provided after December 31, 2008.

SEC. 807. TRANSPARENCY IN PASSENGER TAX DISCLOSURES.

(a) In General.--Section 7275 (relating to penalty for offenses
relating to certain airline tickets and advertising) is amended--
(1) by redesignating subsection (c) as subsection (d),
(2) by striking ``subsection (a) or (b)'' in subsection
(d), as so redesignated, and inserting ``subsection (a), (b),
or (c)'', and
(3) by inserting after subsection (b) the following new
subsection:
``(c) Non-Tax Charges.--
``(1) In general.--In the case of transportation by air for
which disclosure on the ticket or advertising for such
transportation of the amounts paid for passenger taxes is
required by subsection (a)(2) or (b)(1)(B), it shall be
unlawful for the disclosure of the amount of such taxes on such
ticket or advertising to include any amounts not attributable
to the taxes imposed by subsection (a), (b), or (c) of section
4261.
``(2) Inclusion in transportation cost.--Nothing in this
subsection shall prohibit the inclusion of amounts not
attributable to the taxes imposed by subsection (a), (b), or
(c) of section 4261 in the disclosure of the amount paid for
transportation as required by subsection (a)(1) or (b)(1)(A),
or in a separate disclosure of amounts not attributable to such
taxes.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable transportation provided after December 31, 2008.
Calendar No. 726

110th CONGRESS

2d Session

S. 2972

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A BILL

To reauthorize and modernize the Federal Aviation Administration.

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May 6, 2008

Read the second time and placed on the calendar