[Congressional Bills 110th Congress]
[From the U.S. Government Publishing 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

_______________________________________________________________________

                                 A BILL

   To reauthorize and modernize the Federal Aviation Administration.

_______________________________________________________________________

                              May 6, 2008

            Read the second time and placed on the calendar