Amends the airport improvement program (AIP) to increase passenger facility charge amounts that can be imposed by an eligible agency to finance an eligible airport-related project. Expands eligibility requirements for airport-related projects to include projects for: (1) construction of airport bicycle storage facilities; (2) mitigation of noise to buildings caused by large hub airports; and (3) an intermodal ground access pilot project.

Establishes user fees for aircraft owners or operators for certain Federal Aviation Administration (FAA) services. Provides for the adjustment of overflight fees.

Makes specified amendments to the AIP, including increasing the allotment of discretionary funds in a fiscal year for the airport security program.

Expresses the sense of Congress that the modernizing of the U.S. air transportation system, through implementation of the Next Generation Air Transportation System, is a national priority.

Allows a pilot who has attained 60 years of age to serve as a passenger airline pilot until the age of 65 years old, provided certain conditions are met and subject to a limitation for international flights.

Requires certain air carriers and airport operators to submit for the Secretary of Transportation's approval emergency contingency plans for: (1) how food, water, restroom facilities, and access to medical treatment will be provided to passengers who are grounded on aircraft for extended periods; and (2) the sharing of facilities and gates during an airport emergency.

Establishes a pilot program to carry out a number of environmental mitigation demonstration projects at public-use airports.

Increases in the number of aviation safety inspectors in the Flight Standards Service. Requires an assessment of training programs for FAA air traffic controllers.

Extends the Secretary's authority to provide insurance and reinsurance against loss or damage arising out of any risk from the operation of a domestic or foreign aircraft.

Subtitle B: Passenger Facility Charges - (Sec. 111) Amends the airport improvement program (AIP) to increase passenger facility charge (PFC) amounts that can be imposed by an eligible agency to finance an eligible airport-related project. Expands eligibility requirements for airport-related projects to include projects for: (1) construction of airport bicycle storage facilities; (2) mitigation of noise to buildings caused by large hub airports; and (3) an intermodal ground access pilot project.

(Sec. 115) Directs the Secretary of Transportation (Secretary) to initiate a study on: (1) the impacts on airports of accommodating connecting passengers; and (2) the treatment of airports at which the majority of passengers are connecting passengers (and not originating and destination passengers) under the PFC program.

Subtitle C: Fees for FAA Services - (Sec. 121) Directs the FAA Administrator to: (1) provide for the adjustment of overflight fees by October 1, 2008; and (2) establish user fees for aircraft owners or operators for certain FAA services.

Subtitle D: AIP Modifications - (Sec. 131) Makes specified amendments to the AIP, including to, among other things: (1) revise and add term definitions, including expanding the definition of airport development; (2) certain grant assurances for AIP projects; (3) the federal share of costs and allowable costs for AIP projects; (4) establish a mandatory training program for airport owners and operators on how to certify a small business airport concession as a small business concern owned and operated by socially and economically disadvantaged individuals under the disadvantaged business enterprise program (to ensure to the maximum extent practicable at least 10% of all businesses at the airport are small businesses owned and operated by socially and economically disadvantaged individuals), with an authorization of appropriations; (5) create a preference for the use of disabled veteran-owned small businesses in carrying out airport development projects under the AIP program; (6) the calculation and reduction of AIP state apportionments; (7) extend the eligibility of the Marshall Islands, Micronesia, and Palau to receive AIP discretionary grants and funding from the Small Airport Fund; (8) increase the allotment of discretionary funds in a fiscal year for the airport security program; (9) revise provisions concerning the sale of a private airport to a public sponsor; (10) revise the airport privitization pilot program; (11) sunset the pilot program for the puchase of airport development rights; (12) extend the sunset for compatible land use planning and projects by state and local governments; (13) repeal provisions prohibiting the Metropolitan Washington Airports Authority after October 1, 2008, from applying for AIP grants and collecting PFCs; (14) extend provisions concerning the Midway Island Airport; and (15) provide for supplemental apportionments to Puerto Rico on the same basis as provided to Alaska.

Title II: Next generation Air Transportation System and Air Traffic Control Modernization - (Sec. 201) Expresses the sense of Congress that the modernizing of the U.S. air transportation system, through implementation of the Next Generation Air Transportation System (NextGen), is a national priority.

(Sec. 202) Amends the Vision 100-Century of Aviation Reauthorization Act to make the Director of the NextGen Joint Planning and Development Office (JPDO) the Associate Administrator for the NextGen within the FAA.

Requires: (1) NextGen partner federal agencies to designate senior officials to carry out NextGen activities at their respective agencies; (2) the JPDO to develop an Integrated Work Plan that outlines the activities of the NextGen partner federal agencies for the NextGen; and (3) the JPDO to coordinate NextGen activities with the Office of Management and Budget (OMB).

Authorizes appropriations to the JPDO through FY2011.

(Sec. 203) Requires the Next Generation Air Transportation Senior Policy Committee to meet at least twice each year. Directs the Secretary of Transportation (Secretary) to report annually to Congress on progress made by NextGen partner federal agencies in implementing the NextGen Integrated Work Plan.

(Sec. 204) Requires the FAA Administrator to submit to Congress a report detailing the FAA's plans and schedule for integrating automatic dependent surveillance-broadcast (ADS-B) technology into the national airspace system.

(Sec. 205) Requires the FAA Administrator to include certain stakeholders in the planning, development, and deployment of air traffic control modernization projects (including the NextGen).

(Sec. 206) Requires the Comptroller General to conduct a review of the progress and challenges: (1) associated with transforming the U.S. air traffic control system into the NextGen; and (2) related to the acquisition of designated technologies and the development of procedures for NextGen System.

(Sec. 208) Requires the Inspector General of the Department of Transportation (DOT) to conduct an assessment of the effectiveness of FAA's oversight of, and reliance on, third party development of flight procedures for the national airspace system.

(Sec. 209) Directs the FAA Administrator to enter into an arrangement with the National Research Council to review the enterprise architecture for NextGen.

(Sec. 210) Establishes a public-private partnership to for airport-based testing for existing NextGen technologies.

(Sec. 213) Grants the FAA Administrator authority to retain as part of its appropriation proceeds from the disposal of FAA property.

(Sec. 215) Authorizes the FAA Administrator to competitively bid to provide air traffic services to aviation authorities abroad. (Current law authorizes the FAA to provide such services with or without reimbursement if it determines that providing such services promotes aviation safety).

(Sec. 216) Directs the FAA Administrator to: (1) initiate a study on front line manager staffing requirements in air traffic control facilities; and (2) establish a monitoring system for flight service specialist staffing and training under service contracts for flight service stations.

(Sec. 218) Provides for the establishment of a NextGen research and development (R&D) center of excellence.

(Sec. 219) Authorizes additional appropriations for FY2008-FY2011 to carry out airspace redesign initiatives as the FAA Administrator determines appropriate.

Title III: Safety - Subtitle A: General Provisions - (Sec. 301) Allows a pilot who has attained the age of 60 to serve as a passenger airline pilot until the age of 65, provided certain conditions are met and subject to a limitation for international flights.

Prohibits subjecting pilots to different medical examinations and standards on account of age unless to ensure an adequate level of safety in flight, except that no person who has attained 60 years of age may serve as a pilot unless such person has a first-class medical certificate.

Requires air carriers to: (1) continue to provide FAA-approved training to pilots, with specific emphasis on initial and recurring training and qualification of pilots who have attained 60 years of age; and (2) evaluate, every six months, the performance of pilots who have attained 60 years of age through a line check of such pilot.

Requires the Comptroller General to report to Congress on the effect of the modification of pilot age requirements, if any, on aviation safety.

(Sec. 302) Authorizes a person who has been denied an airman certificate by an order of the National Transportation Safety Board (NTSB), or the FAA Administrator when a NTSB order will have a significant adverse impact on the Administrator issuing or renewing airman certificates, to seek judicial review in the appropriate United States Court of Appeals.

(Sec 303) Sets forth a process under which the FAA may release, without the consent of the owner of record of an aircraft, data relating to abandoned aircraft type certificates and supplemental aircraft type certificates for an aircraft, engine, propeller, or appliance to a person seeking to maintain the airworthiness of such aircraft.

Extends by one year the authority of the FAA to issue a design organization certificate to a design organization authorizing such organization to certify compliance with certain requirements and minimum standards for the type certification of aircraft, aircraft engines, propellers, or appliances.

(Sec. 304) Requires the FAA to certify to Congress that it has: (1) inspected each foreign repair station that has performed work on U.S. air carrier aircraft or components at least twice in the preceding year; and (2) tested persons who perform safety-sensitive functions at such stations for use of alcohol or controlled substances.

(Sec. 305) Requires: (1) the FAA Administrator to submit a report to Congress containing a plan for the installation and deployment of systems to alert controllers and/or flight crews to potential runway incursions; and (2) the plan to be integrated into the Operational Evolution Partnership document.

(Sec. 306) Requires the FAA Administrator to: (1) issue improved pilot licenses that are tamper-resistant, include a photograph, and are capable of accommodating a digital photograph, a biometric identifier, or other unique identifier; and (2) develop methods to determine whether a license has been tampered with, altered or counterfeited.

(Sec. 307) Requires the FAA Administrator to issue a final rule regarding the reduction of fuel tank flammability in transport category aircraft no later than December 31, 2007.

(Sec. 308) Directs the FAA Administrator to: (1) conclude arrangements with the National Academy of Sciences for a study of pilot fatigue; and (2) initiate a process for the Civil Aerospace Medical Institute (CAMI) to carry out its recommendations for further study of flight attendant fatigue and to submit a report on such process to Congress no later than March 31, 2009. Authorizes appropriations.

(Sec. 309) Requires the FAA Administrator to: (1) prescribe and enforce occupational safety and health standards for flight attendants on board aircraft; and (2) establish the position of Cabin Occupational Safety and Health Inspector within the FAA. Authorizes appropriations.

(Sec. 310) Requires the FAA Administrator to establish a pilot program to improve safety by providing surveillance for aircraft flying outside of radar coverage in mountainous areas. Authorizes appropriations.

(Sec. 311) Requires the FAA Administrator to conduct a review of off-airport, low-altitude weather observation aircraft, to include recommendations for improving weather reporting for such aircraft.

(Sec. 312) Requires the FAA Administrator to: (1) issue regulations requiring maintenance work on passenger aircraft to be performed by certain authorized individuals; and (2) develop a plan to identify all noncertified maintenance providers that have performed maintenance work on such aircraft. Authorizes appropriations.

(Sec. 313) Requires: (1) the FAA Administrator to issue a final rule that revises certain federal aircraft rescue and firefighting standards (ARFF) to improve the protection of the traveling public, other persons, aircraft, buildings, and the environment from fires and hazardous materials incidents; and (2) such rule to be consistent with national voluntary concensus standards for aircraft rescue and firefighting services at airports.

Subtitle B: Unmanned Aircraft Systems - (Sec. 321) Requires the Secretary to develop a plan for the safe integration of commercial unmanned aircraft systems (UAS) into the national airspace system by no later than September 30, 2012. Authorizes appropriations.

(Sec. 322) Requires the Secretary to determine if certain unmanned aircraft systems may operate safely in the national airspace system before completion of the plan.

(Sec. 323) Requires the Secretary to issue guidance regarding the operation of public unmanned aircraft systems to expedite the issuance of a certificate of authorization process.

Title IV: Air Service Improvements - (Sec. 401) Requires the Secretary to collect, and publish on the DOT website, data regarding cancelled and diverted flights of air carriers.

(Sec. 402) Increases, from 24 to 34, the number of slots exempted from requirements prohibiting an air carrier's operation of an aircraft nonstop in air transportation between Ronald Reagan Washington National Airport and another airport more than 1,250 statute miles away (Perimeter Rule limit). (Requires such increase to be offset by a reduction of 10 hourly air slots within the perimeter that are currently available.)

(Sec. 403) Revises certain guidelines used to determine compensation for continued Essential Air Service (EAS) to small and rural communities to include provisions permitting the Secretary to: (1) incorporate financial incentives in essential air service contracts based on specified performance goals; and (2) execute long-term essential air service contracts when in the public interest to do so.

(Sec. 404) Increases additional funding for each fiscal year for the EAS program.

(Sec. 405) Revises certain priorities in the funding of communities under the small community air service development program to give priority in funding to multiple communities that cooperate to submit a regional or multistate application to improve air service under such program. Extends the small community air service development program through FY2011.

(Sec. 406) Requires certain air carriers and airport operators to submit for the Secretary's approval emergency contingency plans for: (1) how food, water, restroom facilities, and access to medical treatment will be provided to passengers who are grounded on aircraft for extended periods; (2) allowing passengers to deplane following excessive delays; and (2) the sharing of facilities and gates during an airport emergency.

Requires the Secretary to establish a consumer complaints hotline telephone number for use by air passengers. Authorizes appropriations.

Prohibits an air carrier, foreign air carrier, or ticket agent from selling a ticket for a flight on which an insecticide is planned to be used in the aircraft while passengers are on-board the aircraft unless the air carrier, foreign air carrier, or ticket agent first informs the person purchasing the ticket of the planned use of the insecticide, including the name of the insecticide. Sets forth certain penalties.

(Sec. 407) Revises provisions concerning the contents of competition plans.

(Sec. 408) Extends competitive access report requirements for certain airports until October 1, 2012.

(Sec. 409) Establishes funding levels for FY2008-FY2011 for the air traffic control contract tower program. Increases the federal share of the cost of construction of a nonapproach control tower under the program. Directs the Secretary to establish uniform standards and requirements for safety assessments of air traffic control towers that receive funding under such program.

(Sec. 410) Expresses the sense of Congress that each U.S. air carrier should: (1) establish reduced air fares for all members of the Armed Forces; and (2) offer flexible terms that allow active duty members of the armed forces to purchase, modify, or cancel air tickets without time restrictions, fees, and penalties.

(Sec. 411) Requires the Secretary to issue a final rule by December 31, 2007, regarding carriage and use of passenger-owned portable electronic respiratory assistive devices and carrier-supplied medical oxygen devices aboard commercial flights.

(Sec. 412) Repeals the EAS local participation program.

(Sec. 413) Requires the Comptroller General to study how the EAS passenger subsidy cap has impacted the EAS program and the access of small communities to air transportation.

(Sec. 414) Sets forth provisions: (1) requiring notice to communities prior to their termination of eligibility for EAS; and (2) authorizing a state or local government to submit to the Secretary a proposal for restoring EAS subsidies to an air carrier that provides EAS to a small community.

(Sec. 416) Establishes the Office of Rural Aviation within the DOT.

(Sec. 417) Provides for an adjustment of EAS subsidies paid to an air carrier due to a significant increase or decrease in the air carrier's aviation fuel costs.

(Sec. 418) Requires the Inspector General of DOT to conduct a review of air carrier flight delays, cancellations, and associated causes to update its 2000 report entitled "Audit of Air Carrier Flight Delays and Cancellations."

(Sec. 419) Requires the Comptroller General to conduct a study evaluating and comparing European Union (EU) and U.S. rules on compensation offered to air passengers who are denied boarding or whose flights are canceled or delayed.

(Sec. 420) Establishes an advisory committee for aviation consumer protection.

(Sec. 421) Sets forth requirements regarding: (1) denied boarding compensation; (2) air carrier schedule reductions; and (3) expansion of DOT airline consumer complaint investigations.

Title V: Environmental Stewardship and Streamlining - (Sec. 501) Exempts, with a specified exception, a national park that has 50 or fewer commercial air tour flights a year from requirements prohibiting commercial air tour operations over a national park or tribal lands.

Sets forth certain reporting requirements for commercial air tour operators.

(Sec. 502) Requires federal agencies (except the FAA) that issue approvals, licenses, or permits to states for projects under the AIP State Block Grant Program to accept state environmental review analyses for purposes of federal approvals, licenses, or permits related to these projects.

(Sec. 504) Authorizes making grants to an airport operator to assist in completing environmental review and assessment activities for proposals to implement flight procedures at an airport that has been approved as part of an airport noise compatibility program.

(Sec. 505) Directs the FAA Administrator to enter into a cooperative agreement with an institution, entity, or consortium to carry out a program to develop CLEEN engine and airframe technology (lower energy, emissions, and noise engine and airframe technology) for aircraft over the next 10 years. Authorizes appropriations for FY2008-FY2011.

(Sec. 506) Prohibits, after December 31, 2012, the operation of any civil subsonic turbojet of 75,000 pounds or less operating out of airports in the continental United States unless such aircraft complies with stage three noise levels, with specified exceptions.

(Sec. 507) Directs the Secretary to: (1) establish a pilot program to carry out environmental mitigation demonstration projects at no more than six public-use airports; and (2) carry out a pilot program at not more than five public-use airports to design, develop, and test new air traffic flow management technology to better manage the flow of aircraft on the ground and reduce ground holds and idling times for aircraft.

(Sec. 509) Requires the FAA, to the maximum extent possible, to implement environmentally-beneficial practices for new construction and major renovation of FAA air traffic control facilities. Authorizes appropriations.

(Sec. 510) Directs the FAA Administrator to make arrangements for the National Academy of Public Administration or another qualified independent entity to review whether it is desirable to locate regulatory responsibility for establishment of engine noise and emissions standards for civil aircraft within the FAA or the Environmental Protection Agency (EPA).

(Sec. 511) Requires the FAA Administrator to to complete certain air quality studies and analysis with regard to air onboard passenger aircraft.

(Sec. 512) Expresses the sense of: (1) Congress that the EU should work with other contracting states of the International Civil Aviation Organization (ICAO) to develop a consensual approach to addressing aircraft greenhouse gas emissions through the ICAO; and (2) the House of Representatives that the Port Authority of New York and New Jersey should undertake an airport noise compatibility planning study for airports they operate, with particular attention to the impact of noise on neighborhoods surrounding LaGuardia Airport and JFK Airport.

Title VI: FAA Employees and Organization - (Sec. 601) Provides that in disputes arising between the FAA Administrator and its employees in attempting to reach an agreement concerning the implementation of proposed changes to the FAA personnel management system: (1) the services of the Federal Mediation and Conciliation Service (FMCS) shall be used; (2) the Administrator and employees may by mutual agreement adopt procedures for the resolution of disputes or impasses arising in the negotiation of a collective-bargaining agreement; and (3) if the services of the FMCS have led to an impasse between the FAA and its employees in reaching an agreement with respect to implementing the proposed changes, the FAA Administrator and employees shall submit their controversy to the Federal Service Impasses Panel for binding arbitration. (Currently, the services of the FMCS shall be used and, if the services of the FMCS do not lead to an agreement, the Administrator's proposed change to the personnel management system shall not take effect until 60 days have elapsed after the Administrator has transmitted the proposed changes, along with the objections of the employees to the changes, and the reasons for such objections, to Congress.)

Provides that any proposed changes implemented by the FAA on and after July 10, 2005, without the agreement of the FAA and its employees, shall: (1) be null and void and be governed by their last mutual agreement; (2) resume negotiations between the parties until a new contract is adopted; and (3) if an agreement is not reached within 45 days after negotiations resume, then the dispute shall be submitted to Federal Service Impasses Panel for binding arbitration. Makes FAA employees eligible for back pay that are subject to changes that have been declared null and void. Authorizes appropriations.

(Sec. 603) Requires: (1) the Comptroller General to conduct a study on the training of FAA airway transportation systems specialists; and (2) the FAA Administrator to make arrangements with the National Academy of Sciences to conduct a study to assess FAA assumptions and methods used to determine FAA systems specialist staffing needs.

(Sec. 604) Requires the Comptroller General to submit to Congress a report on the status of recommendations made by GAO in its October 2004 report entitled "Aviation Safety: FAA Needs to Strengthen Management of Its Designee Programs."

(Sec. 605) Requires the FAA Administrator to: (1) develop, following the recommendations outlined in the 2007 study by the National Academy of Sciences entitled "Staffing Standards for Aviation Safety Inspectors," a staffing model for aviation safety inspectors not later than October 31, 2009; and (2) increase the number of aviation safety inspectors in the FAA's Flight Standards Service. Authorizes appropriations.

(Sec. 607) Requires the FAA Administrator to: (1) make arrangements with the National Academy of Sciences to conduct a study of the assumptions and methods used by the FAA to estimate staffing needs for FAA air traffic controllers; (2) conduct a study to assess the adequacy of FAA air traffic controller training programs; and (3) conduct a study on training options for graduates of the Collegiate Training Initiative (CTI) program.

(Sec. 610) Establishes the FAA Task Force on Air Traffic Control Facility Conditions. Authorizes appropriations.

Title VII: Aviation Insurance - (Sec. 701) Directs the Secretary, through September 30, 2011, to provide insurance and reinsurance against loss or damage arising out of any risk from the operation of a domestic or foreign aircraft and authorizes the Secretary, after such date and through December 31, 2017, to provide such insurance. Requires, after December 31, 2017, such insurance to be provided in an airline industry sponsored risk retention or other risk-sharing arrangement.

(Sec. 702) Extends, through December 12, 2012, the authority to certify that an air carrier is a victim of an act of terrorism and is liable for damages only as specified.

Title VIII: Miscellaneous - Revises the definition of a "citizen of the United States" as it pertains to "actual control" of an air carrier.

(Sec. 802) Makes Freedom of Information Act (FOIA) requirements inapplicable to FAA disclosures to any federal law enforcement, intelligence, protective service, immigration, or national security official in order to assist the official receiving the information in the performance of official duties.

(Sec. 803) Permits the FAA to access criminal justice information 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. Prohibits using such access to conduct criminal investigations.

(Sec. 805) Directs the Secretary to initiate a study to evaluate the formulation of the National Plan of Integrated Airport Systems.

(Sec. 806) Amends the Railway Labor Act to provide coverage o express carrier employees who are in positions eligible for certification under FAA rules and who perform duties for such carrier that are eligible for such certification. Provides that all other express carrier employees shall be covered by the National Labor Relations Act.

(Sec. 807) Establishes within the FAA a working group to make recommendations for the realignment of FAA services and facilities to assist in the transition to next generation facilities.

(Sec. 808) Authorizes the National Transportation Safety Board (NTSB) to procure accidental death and dismemberment insurance for its employees who travel for accident investigations under hazardous circumstances, as defined by the Board.

(Sec. 809) Requires the Comptroller General to conduct a study to determine how the FAA can ensure the cooperation of air carriers and foreign air carriers to develop and enforce child safety control for adults traveling internationally with children.

(Sec. 810) Authorizes the Secretary to approve the sale of Lost Nation Airport from the city of Willoughby, Ohio, to Lake County, Ohio, provided certain conditions are met.

(Sec. 811) Directs the FAA Administrator to approve the request of the town of Pollock, Louisiana, to close the Pollock Municipal Airport as a public airport and to release the town from any condition contained in a surplus property conveyance or transfer document.

(Sec. 812) Requires the FAA Administrator to develop a human intervention and motivation study program to help combat chemical dependency of flight crewmembers involved in air carrier operations. Authorizes appropriations.

(Sec. 813) Requires the FAA Administrator to submit to Congress a plan that outlines changes to the Washington, D.C., Air Defense Identification Zone that will decrease operational impacts and improve general aviation access to airports in the region.

(Sec. 814) Releases certain Merrill Field Airport land, without monetary consideration, to the town of Anchorage, Alaska, for construction or reconstruction of a federally subsidized highway project.

(Sec. 815) Expresses the sense of Congress that the nation: (1) supports the goals and ideals of the 1940 Air Terminal Museum located at William P. Hobby Airport, Houston, Texas; and (2) congratulates the city of Houston and the 1940 Air Terminal Museum on the 80-year history of William P. Hobby Airport and the role the airport plays in Houston and the nation's transportation system.

(Sec. 816) Sets forth requirements regarding: (1) flight time and duty limitations for flight crewmembers; and (2) the application of certain labor protections to air carrier employees due to the merger or acquisition of the employees' air carrier.

(Sec. 818) Establishes a pilot program at up to four public-use airports for redevelopment of airport property.

(Sec. 819) Requires the FAA Administrator to conduct a study: (1) on helicopter operations over Long Island, New York; and (2) to determine whether onboard temperature standards are necessary to protect cabin and cockpit crew members and passengers on an aircraft from excessive heat during standard operations or during an excessive flight delay.

(Sec. 822) Prohibits the FAA Administrator from carrying out a plan to realign or eliminate the terminal radar approach control (TRACON) at Palm Beach International Airport.

(Sec. 823) Directs the Comptroller General to conduct a study, and report to Congress, on effective strategies to alleviate congestion at airports during peak travel times.

(Sec. 824) Requires the Secretary to issue regulations to require air carriers to provide training for flight attendants and gate attendants regarding serving alcohol, dealing with disruptive passengers, and recognizing intoxicated persons.

(Sec. 825) Requires the FAA Administrator to conduct a study on the feasibility of developing a public website on wind turbine installation obstruction.

Title IX: Federal Aviation Research and Development - Federal Aviation Research and Development Reauthorization Act of 2007 - (Sec. 903) Directs the FAA Administrator to establish: (1) a research initiative to assess the impact of aviation on the climate and to evaluate approaches to mitigate such impact; (2) a program of research grants to universities and non-profit research foundations for research and technology demonstrations to improve runway surfaces; (3) a research program on methods to improve certification of new technologies for introduction into the national airspace system; (4) a permanent airport cooperative research program; (5) a research grant program involving colleges and universities to conduct research by undergraduate students on subjects of relevance to the FAA; and (6) a research program on the impact of space weather on aviation.

(Sec. 906) Increases the federal share of costs of establishing and operating regional centers of air transportation excellence and related research activities. Sets the federal share of costs for individual grants to institutions of higher education to establish and operate such centers at no more than 90%.

(Sec. 908) Requires specified research and models related to unmanned aircraft systems.

(Sec. 911) Requires the FAA Administrator to continue R&D into technologies to modify aviation piston engines to operate using unleaded aviation fuel. Authorizes appropriations.

(Sec. 912) Requires the FAA Administrator to arrange for the National Research Council to conduct: (1) a review of the FAA's energy- and environment-related research programs; (2) a study evaluating the impacts of space weather on the U.S. aviation industry, in particular for the Over-The-Pole (OTP) and Ultra-Long-Range (ULR) operations; and (3) a review of the FAA's aviation safety-related research programs. Authorizes appropriations.

(Sec. 914) Directs the Secretary to establish a research grant program that includes participation of Centers of Excellence for Alternative Jet Fuel Research to develop technologies that produce jet fuel from alternative sources.

(Sec. 915) Directs the FAA Administrator to establish a Center for Excellence in Aviation Employment. Authorizes appropriations.

Title X: Airport and Airway Trust Fund Financing - Airport and Airway Trust Fund Financing Act of 2007 - (Sec. 1002) Amends the Internal Revenue Code to (1) impose an excise tax on aviation-grade kerosene of 35.9 cents per gallon (4.3 cents per gallon for commercial aviation uses); (2) increase to 24.1 cents per gallon the tax rate for aviation gasoline; and (3) extend through FY2011 the excise tax on the transportation by air of persons and property and the excise tax on aviation gasoline and aviation-grade kerosene.

Extends through FY2011 the expenditure authority for the Airport and Airway Trust Fund.

Dedicates revenues from the taxes imposed on aviation gasoline and aviation-grade kerosene to carry out air traffic control modernization.