Congressional Record, Volume 158 Issue 16 (Wednesday, February 1, 2012)

[Congressional Record Volume 158, Number 16 (Wednesday, February 1, 2012)]
[House]
[Pages H230-H304]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CONFERENCE REPORT ON H.R. 658, FAA REAUTHORIZATION AND REFORM ACT OF
2012

Mr. Mica submitted the following conference report and statement on
the bill (H.R. 658) to amend title 49, United States Code, to authorize
appropriations for the Federal Aviation Administration for fiscal years
2011 through 2014, to streamline programs, create efficiencies, reduce
waste, and improve aviation safety and capacity, to provide stable
funding for the national aviation system, and for other purposes:

Conference Report (H. Rept. 112-381)

The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
658), to amend title 49, United States Code, to authorize
appropriations for the Federal Aviation Administration for
fiscal years 2011 through 2014, to streamline programs,
create efficiencies, reduce waste, and improve aviation
safety and capacity, to provide stable funding for the
national aviation system, and for other purposes, having met,
after full and free conference, have agreed to recommend and
do recommend to their respective Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``FAA
Modernization and Reform Act of 2012''.
(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

Subtitle A--Funding of FAA Programs

Sec. 101. Airport planning and development and noise compatibility
planning and programs.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. FAA operations.
Sec. 104. Funding for aviation programs.
Sec. 105. Delineation of Next Generation Air Transportation System
projects.

Subtitle B--Passenger Facility Charges

Sec. 111. Passenger facility charges.
Sec. 112. GAO study of alternative means of collecting PFCs.
Sec. 113. Qualifications-based selection.

Subtitle C--Fees for FAA Services

Sec. 121. Update on overflights.
Sec. 122. Registration fees.

Subtitle D--Airport Improvement Program Modifications

Sec. 131. Airport master plans.
Sec. 132. AIP definitions.
Sec. 133. Recycling plans for airports.
Sec. 134. Contents of competition plans.
Sec. 135. Grant assurances.
Sec. 136. Agreements granting through-the-fence access to general
aviation airports.
Sec. 137. Government share of project costs.
Sec. 138. Allowable project costs.
Sec. 139. Veterans' preference.
Sec. 140. Minority and disadvantaged business participation.
Sec. 141. Special apportionment rules.
Sec. 142. United States territories minimum guarantee.
Sec. 143. Reducing apportionments.
Sec. 144. Marshall Islands, Micronesia, and Palau.
Sec. 145. Use of apportioned amounts.
Sec. 146. Designating current and former military airports.
Sec. 147. Contract tower program.
Sec. 148. Resolution of disputes concerning airport fees.
Sec. 149. Sale of private airports to public sponsors.
Sec. 150. Repeal of certain limitations on Metropolitan Washington
Airports Authority.
Sec. 151. Midway Island Airport.
Sec. 152. Miscellaneous amendments.
Sec. 153. Extension of grant authority for compatible land use planning
and projects by State and local governments.
Sec. 154. Priority review of construction projects in cold weather
States.

[[Page H231]]

Sec. 155. Study on national plan of integrated airport systems.
Sec. 156. Airport privatization program.

TITLE II--NEXTGEN AIR TRANSPORTATION SYSTEM AND AIR TRAFFIC CONTROL
MODERNIZATION

Sec. 201. Definitions.
Sec. 202. NextGen demonstrations and concepts.
Sec. 203. Clarification of authority to enter into reimbursable
agreements.
Sec. 204. Chief NextGen Officer.
Sec. 205. Definition of air navigation facility.
Sec. 206. Clarification to acquisition reform authority.
Sec. 207. Assistance to foreign aviation authorities.
Sec. 208. Next Generation Air Transportation System Joint Planning and
Development Office.
Sec. 209. Next Generation Air Transportation Senior Policy Committee.
Sec. 210. Improved management of property inventory.
Sec. 211. Automatic dependent surveillance-broadcast services.
Sec. 212. Expert review of enterprise architecture for NextGen.
Sec. 213. Acceleration of NextGen technologies.
Sec. 214. Performance metrics.
Sec. 215. Certification standards and resources.
Sec. 216. Surface systems acceleration.
Sec. 217. Inclusion of stakeholders in air traffic control
modernization projects.
Sec. 218. Airspace redesign.
Sec. 219. Study on feasibility of development of a public internet web-
based resource on locations of potential aviation
obstructions.
Sec. 220. NextGen research and development center of excellence.
Sec. 221. Public-private partnerships.
Sec. 222. Operational incentives.
Sec. 223. Educational requirements.
Sec. 224. Air traffic controller staffing initiatives and analysis.
Sec. 225. Reports on status of greener skies project.

TITLE III--SAFETY

Subtitle A--General Provisions

Sec. 301. Judicial review of denial of airman certificates.
Sec. 302. Release of data relating to abandoned type certificates and
supplemental type certificates.
Sec. 303. Design and production organization certificates.
Sec. 304. Cabin crew communication.
Sec. 305. Line check evaluations.
Sec. 306. Safety of air ambulance operations.
Sec. 307. Prohibition on personal use of electronic devices on flight
deck.
Sec. 308. Inspection of repair stations located outside the United
States.
Sec. 309. Enhanced training for flight attendants.
Sec. 310. Limitation on disclosure of safety information.
Sec. 311. Prohibition against aiming a laser pointer at an aircraft.
Sec. 312. Aircraft certification process review and reform.
Sec. 313. Consistency of regulatory interpretation.
Sec. 314. Runway safety.
Sec. 315. Flight Standards Evaluation Program.
Sec. 316. Cockpit smoke.
Sec. 317. Off-airport, low-altitude aircraft weather observation
technology.
Sec. 318. Feasibility of requiring helicopter pilots to use night
vision goggles.
Sec. 319. Maintenance providers.
Sec. 320. Study of air quality in aircraft cabins.
Sec. 321. Improved pilot licenses.

Subtitle B--Unmanned Aircraft Systems

Sec. 331. Definitions.
Sec. 332. Integration of civil unmanned aircraft systems into national
airspace system.
Sec. 333. Special rules for certain unmanned aircraft systems.
Sec. 334. Public unmanned aircraft systems.
Sec. 335. Safety studies.
Sec. 336. Special rule for model aircraft.

Subtitle C--Safety and Protections

Sec. 341. Aviation Safety Whistleblower Investigation Office.
Sec. 342. Postemployment restrictions for flight standards inspectors.
Sec. 343. Review of air transportation oversight system database.
Sec. 344. Improved voluntary disclosure reporting system.
Sec. 345. Duty periods and flight time limitations applicable to flight
crewmembers.
Sec. 346. Certain existing flight time limitations and rest
requirements.
Sec. 347. Emergency locator transmitters on general aviation aircraft.

TITLE IV--AIR SERVICE IMPROVEMENTS

Subtitle A--Passenger Air Service Improvements

Sec. 401. Smoking prohibition.
Sec. 402. Monthly air carrier reports.
Sec. 403. Musical instruments.
Sec. 404. Extension of competitive access reports.
Sec. 405. Airfares for members of the Armed Forces.
Sec. 406. Review of air carrier flight delays, cancellations, and
associated causes.
Sec. 407. Compensation for delayed baggage.
Sec. 408. DOT airline consumer complaint investigations.
Sec. 409. Study of operators regulated under part 135.
Sec. 410. Use of cell phones on passenger aircraft.
Sec. 411. Establishment of advisory committee for aviation consumer
protection.
Sec. 412. Disclosure of seat dimensions to facilitate the use of child
safety seats on aircraft.
Sec. 413. Schedule reduction.
Sec. 414. Ronald Reagan Washington National Airport slot exemptions.
Sec. 415. Passenger air service improvements.

Subtitle B--Essential Air Service

Sec. 421. Limitation on essential air service to locations that average
fewer than 10 enplanements per day.
Sec. 422. Essential air service eligibility.
Sec. 423. Essential air service marketing.
Sec. 424. Notice to communities prior to termination of eligibility for
subsidized essential air service.
Sec. 425. Restoration of eligibility to a place determined to be
ineligible for subsidized essential air service.
Sec. 426. Adjustments to compensation for significantly increased
costs.
Sec. 427. Essential air service contract guidelines.
Sec. 428. Essential air service reform.
Sec. 429. Small community air service.
Sec. 430. Repeal of essential air service local participation program.
Sec. 431. Extension of final order establishing mileage adjustment
eligibility.

TITLE V--ENVIRONMENTAL STREAMLINING

Sec. 501. Overflights of national parks.
Sec. 502. State block grant program.
Sec. 503. Airport funding of special studies or reviews.
Sec. 504. Grant eligibility for assessment of flight procedures.
Sec. 505. Determination of fair market value of residential properties.
Sec. 506. Prohibition on operating certain aircraft weighing 75,000
pounds or less not complying with stage 3 noise levels.
Sec. 507. Aircraft departure queue management pilot program.
Sec. 508. High performance, sustainable, and cost-effective air traffic
control facilities.
Sec. 509. Sense of Congress.
Sec. 510. Aviation noise complaints.
Sec. 511. Pilot program for zero-emission airport vehicles.
Sec. 512. Increasing the energy efficiency of airport power sources.

TITLE VI--FAA EMPLOYEES AND ORGANIZATION

Sec. 601. Federal Aviation Administration personnel management system.
Sec. 602. Presidential rank award program.
Sec. 603. Collegiate training initiative study.
Sec. 604. Frontline manager staffing.
Sec. 605. FAA technical training and staffing.
Sec. 606. Safety critical staffing.
Sec. 607. Air traffic control specialist qualification training.
Sec. 608. FAA air traffic controller staffing.
Sec. 609. Air traffic controller training and scheduling.
Sec. 610. FAA facility conditions.
Sec. 611. Technical correction.

TITLE VII--AVIATION INSURANCE

Sec. 701. General authority.
Sec. 702. Extension of authority to limit third-party liability of air
carriers arising out of acts of terrorism.
Sec. 703. Clarification of reinsurance authority.
Sec. 704. Use of independent claims adjusters.

TITLE VIII--MISCELLANEOUS

Sec. 801. Disclosure of data to Federal agencies in interest of
national security.
Sec. 802. FAA authority to conduct criminal history record checks.
Sec. 803. Civil penalties technical amendments.
Sec. 804. Consolidation and realignment of FAA services and facilities.
Sec. 805. Limiting access to flight decks of all-cargo aircraft.
Sec. 806. Consolidation or elimination of obsolete, redundant, or
otherwise unnecessary reports; use of electronic media
format.
Sec. 807. Prohibition on use of certain funds.
Sec. 808. Study on aviation fuel prices.
Sec. 809. Wind turbine lighting.
Sec. 810. Air-rail code sharing study.
Sec. 811. D.C. Metropolitan Area Special Flight Rules Area.
Sec. 812. FAA review and reform.
Sec. 813. Use of mineral revenue at certain airports.
Sec. 814. Contracting.
Sec. 815. Flood planning.
Sec. 816. Historical aircraft documents.
Sec. 817. Release from restrictions.
Sec. 818. Sense of Congress.
Sec. 819. Human Intervention Motivation Study.
Sec. 820. Study of aeronautical mobile telemetry.
Sec. 821. Clarification of requirements for volunteer pilots operating
charitable medical flights.
Sec. 822. Pilot program for redevelopment of airport properties.
Sec. 823. Report on New York City and Newark air traffic control
facilities.
Sec. 824. Cylinders of compressed oxygen or other oxidizing gases.
Sec. 825. Orphan aviation earmarks.
Sec. 826. Privacy protections for air passenger screening with advanced
imaging technology.
Sec. 827. Commercial space launch license requirements.
Sec. 828. Air transportation of lithium cells and batteries.
Sec. 829. Clarification of memorandum of understanding with OSHA.
Sec. 830. Approval of applications for the airport security screening
opt-out program.

[[Page H232]]

TITLE IX--FEDERAL AVIATION RESEARCH AND DEVELOPMENT

Sec. 901. Authorization of appropriations.
Sec. 902. Definitions.
Sec. 903. Unmanned aircraft systems.
Sec. 904. Research program on runways.
Sec. 905. Research on design for certification.
Sec. 906. Airport cooperative research program.
Sec. 907. Centers of excellence.
Sec. 908. Center of excellence for aviation human resource research.
Sec. 909. Interagency research on aviation and the environment.
Sec. 910. Aviation fuel research and development program.
Sec. 911. Research program on alternative jet fuel technology for civil
aircraft.
Sec. 912. Review of FAA's energy-related and environment-related
research programs.
Sec. 913. Review of FAA's aviation safety-related research programs.
Sec. 914. Production of clean coal fuel technology for civilian
aircraft.
Sec. 915. Wake turbulence, volcanic ash, and weather research.
Sec. 916. Reauthorization of center of excellence in applied research
and training in the use of advanced materials in
transport aircraft.
Sec. 917. Research and development of equipment to clean and monitor
the engine and APU bleed air supplied on pressurized
aircraft.
Sec. 918. Expert review of enterprise architecture for NextGen.
Sec. 919. Airport sustainability planning working group.

TITLE X--NATIONAL MEDIATION BOARD

Sec. 1001. Rulemaking authority.
Sec. 1002. Runoff election rules.
Sec. 1003. Bargaining representative certification.
Sec. 1004. Oversight.

TITLE XI--AIRPORT AND AIRWAY TRUST FUND PROVISIONS AND RELATED TAXES

Sec. 1100. Amendment of 1986 code.
Sec. 1101. Extension of taxes funding airport and airway trust fund.
Sec. 1102. Extension of airport and airway trust fund expenditure
authority.
Sec. 1103. Treatment of fractional aircraft ownership programs.
Sec. 1104. Transparency in passenger tax disclosures.
Sec. 1105. Tax-exempt bond financing for fixed-wing emergency medical
aircraft.
Sec. 1106. Rollover of amounts received in airline carrier bankruptcy.
Sec. 1107. Termination of exemption for small jet aircraft on
nonestablished lines.
Sec. 1108. Modification of control definition for purposes of section
249.

TITLE XII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO-ACT OF 2010

Sec. 1201. Compliance provision.

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 of this Act.

TITLE I--AUTHORIZATIONS

Subtitle A--Funding of FAA Programs

SEC. 101. AIRPORT PLANNING AND DEVELOPMENT AND NOISE
COMPATIBILITY PLANNING AND PROGRAMS.

(a) Authorization.--Section 48103 is amended to read as
follows:

``Sec. 48103. Airport planning and development and noise
compatibility planning and programs

``(a) In General.--There shall be available to the
Secretary of Transportation out of the Airport and Airway
Trust Fund established under section 9502 of the Internal
Revenue Code of 1986 to make grants for airport planning and
airport development under section 47104, airport noise
compatibility planning under section 47505(a)(2), and
carrying out noise compatibility programs under section
47504(c) $3,350,000,000 for each of fiscal years 2012 through
2015.
``(b) Availability of Amounts.--Amounts made available
under subsection (a) shall remain available until
expended.''.
(b) Obligational Authority.--Section 47104(c) is amended in
the matter preceding paragraph (1) by striking ``After'' and
all the follows before ``the Secretary'' and inserting
``After September 30, 2015,''.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

(a) Authorization of Appropriations.--Section 48101(a) is
amended by striking paragraphs (1) through (8) and inserting
the following:
``(1) $2,731,000,000 for fiscal year 2012.
``(2) $2,715,000,000 for fiscal year 2013.
``(3) $2,730,000,000 for fiscal year 2014.
``(4) $2,730,000,000 for fiscal year 2015.''.
(b) Set-Asides.--Section 48101 is amended--
(1) by striking subsections (c), (d), (e), (h), and (i);
and
(2) by redesignating subsections (f) and (g) as subsections
(c) and (d), respectively.

SEC. 103. FAA OPERATIONS.

(a) In General.--Section 106(k)(1) is amended by striking
subparagraphs (A) through (H) and inserting the following:
``(A) $9,653,000,000 for fiscal year 2012;
``(B) $9,539,000,000 for fiscal year 2013;
``(C) $9,596,000,000 for fiscal year 2014; and
``(D) $9,653,000,000 for fiscal year 2015.''.
(b) Authorized Expenditures.--Section 106(k)(2) is
amended--
(1) by striking subparagraphs (A), (B), (C), and (D);
(2) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (A), (B), and (C), respectively; and
(3) in subparagraphs (A), (B), and (C) (as so redesignated)
by striking ``2004 through 2007'' and inserting ``2012
through 2015''.
(c) Authority To Transfer Funds.--Section 106(k) is amended
by adding at the end the following:
``(3) Administering program within available funding.--
Notwithstanding any other provision of law, in each of fiscal
years 2012 through 2015, if the Secretary determines that the
funds appropriated under paragraph (1) are insufficient to
meet the salary, operations, and maintenance expenses of the
Federal Aviation Administration, as authorized by this
section, the Secretary shall reduce nonsafety-related
activities of the Administration as necessary to reduce such
expenses to a level that can be met by the funding available
under paragraph (1).''.

SEC. 104. FUNDING FOR AVIATION PROGRAMS.

(a) Airport and Airway Trust Fund Guarantee.--Section
48114(a)(1)(A) is amended to read as follows:
``(A) In general.--The total budget resources made
available from the Airport and Airway Trust Fund each fiscal
year pursuant to sections 48101, 48102, 48103, and 106(k)
shall--
``(i) in fiscal year 2013, be equal to 90 percent of the
estimated level of receipts plus interest credited to the
Airport and Airway Trust Fund for that fiscal year; and
``(ii) in fiscal year 2014 and each fiscal year thereafter,
be equal to the sum of--

``(I) 90 percent of the estimated level of receipts plus
interest credited to the Airport and Airway Trust Fund for
that fiscal year; and
``(II) the actual level of receipts plus interest credited
to the Airport and Airway Trust Fund for the second preceding
fiscal year minus the total amount made available for
obligation from the Airport and Airway Trust Fund for the
second preceding fiscal year.

Such amounts may be used only for the aviation investment
programs listed in subsection (b)(1).''.
(b) Technical Correction.--Section 48114(a)(1)(B) is
amended by striking ``subsection (b)'' and inserting
``subsection (b)(1)''.
(c) Additional Authorizations of Appropriations From the
General Fund.--Section 48114(a)(2) is amended by striking
``2007'' and inserting ``2015''.
(d) Estimated Level of Receipts Plus Interest Defined.--
Section 48114(b)(2) is amended--
(1) in the paragraph heading by striking ``Level'' and
inserting ``Estimated level''; and
(2) by striking ``level of receipts plus interest'' and
inserting ``estimated level of receipts plus interest''.
(e) Enforcement of Guarantees.--Section 48114(c)(2) is
amended by striking ``2007'' and inserting ``2015''.

SEC. 105. DELINEATION OF NEXT GENERATION AIR TRANSPORTATION
SYSTEM PROJECTS.

Section 44501(b) is amended--
(1) in paragraph (3) by striking ``and'' after the
semicolon;
(2) in paragraph (4)(B) by striking ``defense.'' and
inserting ``defense; and''; and
(3) by adding at the end the following:
``(5) a list of capital projects that are part of the Next
Generation Air Transportation System and funded by amounts
appropriated under section 48101(a).''.

Subtitle B--Passenger Facility Charges

SEC. 111. PASSENGER FACILITY CHARGES.

(a) PFC Defined.--Section 40117(a)(5) is amended to read as
follows:
``(5) Passenger facility charge.--The term `passenger
facility charge' means a charge or fee imposed under this
section.''.
(b) Pilot Program for PFC Authorizations at Nonhub
Airports.--Section 40117(l) is amended--
(1) by striking paragraph (7); and
(2) by redesignating paragraph (8) as paragraph (7).
(c) Correction of References.--
(1) Section 40117.--Section 40117 is amended--
(A) in the section heading by striking ``fees'' and
inserting ``charges'';
(B) in the heading for subsection (e) by striking ``Fees''
and inserting ``Charges'';
(C) in the heading for subsection (l) by striking ``Fee''
and inserting ``Charge'';
(D) in the heading for paragraph (5) of subsection (l) by
striking ``fee'' and inserting ``charge'';
(E) in the heading for subsection (m) by striking ``Fees''
and inserting ``Charges'';
(F) in the heading for paragraph (1) of subsection (m) by
striking ``fees'' and inserting ``charges'';
(G) by striking ``fee'' each place it appears (other than
the second sentence of subsection (g)(4)) and inserting
``charge''; and
(H) by striking ``fees'' each place it appears and
inserting ``charges''.
(2) Other references.--
(A) Subtitle VII is amended by striking ``fee'' and
inserting ``charge'' each place it appears in each of the
following sections:
(i) Section 47106(f)(1).
(ii) Section 47110(e)(5).
(iii) Section 47114(f).
(iv) Section 47134(g)(1).
(v) Section 47139(b).
(vi) Section 47521.
(vii) Section 47524(e).
(viii) Section 47526(2).
(B) Section 47521(5) is amended by striking ``fees'' and
inserting ``charges''.

[[Page H233]]

(3) Clerical amendment.--The analysis for chapter 401 is
amended by striking the item relating to section 40117 and
inserting the following:

``40117. Passenger facility charges.''.

SEC. 112. GAO STUDY OF ALTERNATIVE MEANS OF COLLECTING PFCS.

(a) In General.--The Comptroller General of the United
States shall conduct a study of alternative means of
collecting passenger facility charges imposed under section
40117 of title 49, United States Code, that would permit such
charges to be collected without being included in the ticket
price. In conducting the study, the Comptroller General shall
consider, at a minimum--
(1) collection options for arriving, connecting, and
departing passengers at airports;
(2) cost sharing or allocation methods based on passenger
travel to address connecting traffic; and
(3) examples of airport charges collected by domestic and
international airports that are not included in ticket
prices.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall submit
to the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report on
the study, including the Comptroller General's findings,
conclusions, and recommendations.

SEC. 113. QUALIFICATIONS-BASED SELECTION.

It is the sense of Congress that airports should consider
the use of qualifications-based selection in carrying out
capital improvement projects funded using passenger facility
charges collected under section 40117 of title 49, United
States Code, with the goal of serving the needs of all
stakeholders.

Subtitle C--Fees for FAA Services

SEC. 121. UPDATE ON OVERFLIGHTS.

(a) Establishment and Adjustment of Fees.--Section 45301(b)
is amended to read as follows:
``(b) Establishment and Adjustment of Fees.--
``(1) In general.--In establishing and adjusting fees under
this section, the Administrator shall ensure that the fees
are reasonably related to the Administration's costs, as
determined by the Administrator, of providing the services
rendered.
``(2) Services for which costs may be recovered.--Services
for which costs may be recovered under this section include
the costs of air traffic control, navigation, weather
services, training, and emergency services that are available
to facilitate safe transportation over the United States and
the costs of 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.
``(3) Limitations on judicial review.--Notwithstanding
section 702 of title 5 or any other provision of law, the
following actions and other matters shall not be subject to
judicial review:
``(A) The establishment or adjustment of a fee by the
Administrator under this section.
``(B) The validity of a determination of costs by the
Administrator under paragraph (1), and the processes and
procedures applied by the Administrator when reaching such
determination.
``(C) An allocation of costs by the Administrator under
paragraph (1) to services provided, and the processes and
procedures applied by the Administrator when establishing
such allocation.
``(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'
includes operation and maintenance costs, leasing costs, and
overhead expenses associated with the services provided and
the facilities and equipment used in providing such
services.''.
(b) Adjustment of Fees.--Section 45301 is amended by adding
at the end the following:
``(e) Adjustment of Fees.--In addition to adjustments under
subsection (b), the Administrator may periodically adjust the
fees established under this section.''.

SEC. 122. REGISTRATION FEES.

(a) In General.--Chapter 453 is amended by adding at the
end the following:

``Sec. 45305. Registration, certification, and related fees

``(a) General Authority and Fees.--Subject to subsection
(b), the Administrator of the Federal Aviation Administration
shall establish and collect a fee for each of the following
services and activities of the Administration that does not
exceed the estimated costs of the service or activity:
``(1) Registering an aircraft.
``(2) Reregistering, replacing, or renewing an aircraft
registration certificate.
``(3) Issuing an original dealer's aircraft registration
certificate.
``(4) Issuing an additional dealer's aircraft registration
certificate (other than the original).
``(5) Issuing a special registration number.
``(6) Issuing a renewal of a special registration number
reservation.
``(7) Recording a security interest in an aircraft or
aircraft part.
``(8) Issuing an airman certificate.
``(9) Issuing a replacement airman certificate.
``(10) Issuing an airman medical certificate.
``(11) Providing a legal opinion pertaining to aircraft
registration or recordation.
``(b) Limitation on Collection.--No fee may be collected
under this section unless the expenditure of the fee to pay
the costs of activities and services for which the fee is
imposed is provided for in advance in an appropriations Act.
``(c) Fees Credited as Offsetting Collections.--
``(1) In general.--Notwithstanding section 3302 of title
31, any fee authorized to be collected under this section
shall--
``(A) be credited as offsetting collections to the account
that finances the activities and services for which the fee
is imposed;
``(B) be available for expenditure only to pay the costs of
activities and services for which the fee is imposed,
including all costs associated with collecting the fee; and
``(C) remain available until expended.
``(2) Continuing appropriations.--The Administrator may
continue to assess, collect, and spend fees established under
this section during any period in which the funding for the
Federal Aviation Administration is provided under an Act
providing continuing appropriations in lieu of the
Administration's regular appropriations.
``(3) Adjustments.--The Administrator shall adjust a fee
established under subsection (a) for a service or activity if
the Administrator determines that the actual cost of the
service or activity is higher or lower than was indicated by
the cost data used to establish such fee.''.
(b) Clerical Amendment.--The analysis for chapter 453 is
amended by adding at the end the following:

``45305. Registration, certification, and related fees.''.
(c) Fees Involving Aircraft Not Providing Air
Transportation.--Section 45302(e) is amended--
(1) by striking ``A fee'' and inserting the following:
``(1) In general.--A fee''; and
(2) by adding at the end the following:
``(2) Effect of imposition of other fees.--A fee may not be
imposed for a service or activity under this section during
any period in which a fee for the same service or activity is
imposed under section 45305.''.

Subtitle D--Airport Improvement Program Modifications

SEC. 131. AIRPORT MASTER PLANS.

Section 47101(g)(2) is amended--
(1) in subparagraph (B) by striking ``and'' at the end;
(2) by redesignating subparagraph (C) as subparagraph (D);
and
(3) by inserting after subparagraph (B) the following:
``(C) consider passenger convenience, airport ground
access, and access to airport facilities; and''.

SEC. 132. AIP DEFINITIONS.

(a) Airport Development.--Section 47102(3) is amended--
(1) in subparagraph (B)(iv) by striking ``20'' and
inserting ``9'';
(2) in subparagraph (G) by inserting ``and including
acquiring glycol recovery vehicles,'' after ``aircraft,'';
and
(3) 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.
``(N) terminal development under section 47119(a).
``(O) acquiring and installing facilities and equipment to
provide air conditioning, heating, or electric power from
terminal-based, nonexclusive use facilities to aircraft
parked at a public use airport for the purpose of reducing
energy use or harmful emissions as compared to the provision
of such air conditioning, heating, or electric power from
aircraft-based systems.''.
(b) Airport Planning.--Section 47102(5) is amended to read
as follows:
``(5) `airport planning' means planning as defined by
regulations the Secretary prescribes and includes--
``(A) integrated airport system planning;
``(B) developing an environmental management system; and
``(C) developing 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.''.
(c) General Aviation Airport.--Section 47102 is amended--
(1) by redesignating paragraphs (23) through (25) as
paragraphs (25) through (27), respectively;
(2) by redesignating paragraphs (8) through (22) as
paragraphs (9) through (23), respectively; and
(3) by inserting after paragraph (7) the following:
``(8) `general aviation airport' means a public airport
that is located in a State and that, as determined by the
Secretary--
``(A) does not have scheduled service; or
``(B) has scheduled service with less than 2,500 passenger
boardings each year.''.
(d) Revenue Producing Aeronautical Support Facilities.--
Section 47102 is amended by inserting after paragraph (23)
(as redesignated by subsection (c)(2) of this section) the
following:
``(24) `revenue producing aeronautical support facilities'
means fuel farms, hangar buildings, self-service credit card
aeronautical fueling systems, airplane wash racks, major
rehabilitation of a hangar owned by a sponsor, or other
aeronautical support facilities that the Secretary determines
will increase the revenue producing ability of the
airport.''.
(e) Terminal Development.--Section 47102 (as amended by
subsection (c) of this section) is further amended by adding
at the end the following:
``(28) `terminal development' means--
``(A) development of--
``(i) an airport passenger terminal building, including
terminal gates;
``(ii) access roads servicing exclusively airport traffic
that leads directly to or from an airport passenger terminal
building; and

[[Page H234]]

``(iii) walkways that lead directly to or from an airport
passenger terminal building; and
``(B) the cost of a vehicle described in section
47119(a)(1)(B).''.

SEC. 133. RECYCLING PLANS FOR AIRPORTS.

Section 47106(a) is amended--
(1) in paragraph (4) by striking ``and'' at the end;
(2) in paragraph (5) by striking ``proposed.'' 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 issues relating to
solid waste recycling at the airport, including--
``(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; and
``(E) the potential for cost savings or the generation of
revenue.''.

SEC. 134. CONTENTS OF COMPETITION PLANS.

Section 47106(f)(2) is amended--
(1) by striking ``patterns of air service,'';
(2) by inserting ``and'' before ``whether''; and
(3) by striking ``, and airfare levels'' and all that
follows before the period.

SEC. 135. GRANT ASSURANCES.

(a) General Written Assurances.--Section
47107(a)(16)(D)(ii) is amended by inserting before the
semicolon at the end the following: ``, except in the case of
a relocation or replacement of an existing airport facility
that meets the conditions of section 47110(d)''.
(b) Written Assurances on Acquiring Land.--
(1) Use of proceeds.--Section 47107(c)(2) is amended--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i) by striking
``purpose--'' and inserting ``purpose (including land serving
as a noise buffer either by being undeveloped or developed in
a way that is compatible with using the land for noise
buffering purposes)--'';
(ii) in clause (iii) by striking ``paid to the Secretary''
and all that follows before the semicolon and inserting
``reinvested in another project at the airport or transferred
to another airport as the Secretary prescribes under
paragraph (4)''; and
(B) in subparagraph (B)(iii) by striking ``reinvested, on
application'' and all that follows before the period at the
end and inserting ``reinvested in another project at the
airport or transferred to another airport as the Secretary
prescribes under paragraph (4)''.
(2) Eligible projects.--Section 47107(c) is amended by
adding at the end the following:
``(4) In approving the reinvestment or transfer of proceeds
under paragraph (2)(A)(iii) or (2)(B)(iii), the Secretary
shall give preference, in descending order, to the following
actions:
``(A) Reinvestment in an approved noise compatibility
project.
``(B) Reinvestment in an approved project that is eligible
for funding under section 47117(e).
``(C) Reinvestment in an approved airport development
project that is eligible for funding under section 47114,
47115, or 47117.
``(D) Transfer to a sponsor of another public airport to be
reinvested in an approved noise compatibility project at that
airport.
``(E) Payment to the Secretary for deposit in the Airport
and Airway Trust Fund established under section 9502 of the
Internal Revenue Code of 1986.
``(5)(A) A lease at fair market value by an airport owner
or operator of land acquired for a noise compatibility
purpose using a grant provided under this subchapter shall
not be considered a disposal for purposes of paragraph (2).
``(B) The airport owner or operator may use revenues from a
lease described in subparagraph (A) for an approved airport
development project that is eligible for funding under
section 47114, 47115, or 47117.
``(C) The Secretary shall coordinate with each airport
owner or operator to ensure that leases described in
subparagraph (A) are consistent with noise buffering
purposes.
``(D) The provisions of this paragraph apply to all land
acquired before, on, or after the date of enactment of this
paragraph.''.

SEC. 136. AGREEMENTS GRANTING THROUGH-THE-FENCE ACCESS TO
GENERAL AVIATION AIRPORTS.

(a) In General.--Section 47107 is amended by adding at the
end the following:
``(t) Agreements Granting Through-The-Fence Access to
General Aviation Airports.--
``(1) In general.--Subject to paragraph (2), a sponsor of a
general aviation airport shall not be considered to be in
violation of this subtitle, or to be in violation of a grant
assurance made under this section or under any other
provision of law as a condition for the receipt of Federal
financial assistance for airport development, solely because
the sponsor enters into an agreement that grants to a person
that owns residential real property adjacent to or near the
airport access to the airfield of the airport for the
following:
``(A) Aircraft of the person.
``(B) Aircraft authorized by the person.
``(2) Through-the-fence agreements.--
``(A) In general.--An agreement described in paragraph (1)
between an airport sponsor and a property owner (or an
association representing such property owner) shall be a
written agreement that prescribes the rights,
responsibilities, charges, duration, and other terms the
airport sponsor determines are necessary to establish and
manage the airport sponsor's relationship with the property
owner.
``(B) Terms and conditions.--An agreement described in
paragraph (1) between an airport sponsor and a property owner
(or an association representing such property owner) shall
require the property owner, at minimum--
``(i) to pay airport access charges that, as determined by
the airport sponsor, are comparable to those charged to
tenants and operators on-airport making similar use of the
airport;
``(ii) to bear the cost of building and maintaining the
infrastructure that, as determined by the airport sponsor, is
necessary to provide aircraft located on the property
adjacent to or near the airport access to the airfield of the
airport;
``(iii) to maintain the property for residential,
noncommercial use for the duration of the agreement;
``(iv) to prohibit access to the airport from other
properties through the property of the property owner; and
``(v) to prohibit any aircraft refueling from occurring on
the property.''.
(b) Applicability.--The amendment made by subsection (a)
shall apply to an agreement between an airport sponsor and a
property owner (or an association representing such property
owner) entered into before, on, or after the date of
enactment of this Act.

SEC. 137. GOVERNMENT SHARE OF PROJECT COSTS.

Section 47109 is amended--
(1) in subsection (a) by striking ``provided in subsection
(b) or subsection (c) of this section'' and inserting
``otherwise provided in this section''; 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 airport changes to
a medium hub airport, the Government's share of allowable
project costs for the airport may not exceed 90 percent for
the first 2 fiscal years after such change in hub status.
``(f) Special Rule for Economically Distressed
Communities.--The Government's share of allowable project
costs shall be 95 percent for a project at an airport that--
``(1) is receiving essential air service for which
compensation was provided to an air carrier under subchapter
II of chapter 417; and
``(2) is located in an area that meets one or more of the
criteria established in section 301(a) of the Public Works
and Economic Development Act of 1965 (42 U.S.C. 3161(a)), as
determined by the Secretary of Commerce.''.

SEC. 138. ALLOWABLE PROJECT COSTS.

(a) Allowable Project Costs.--Section 47110(b)(2)(D) is
amended to read as follows:
``(D) if the cost is for airport development and is
incurred before execution of the grant agreement, but in the
same fiscal year as execution of the grant agreement, and
if--
``(i) the cost was incurred before execution of the grant
agreement because the airport has a shortened construction
season due to climactic conditions in the vicinity of the
airport;
``(ii) the cost is in accordance with an airport layout
plan approved by the Secretary and with all statutory and
administrative requirements that would have been applicable
to the project if the project had been carried out after
execution of the grant agreement, including submission of a
complete grant application to the appropriate regional or
district office of the Federal Aviation Administration;
``(iii) the sponsor notifies the Secretary before
authorizing work to commence on the project;
``(iv) the sponsor has an alternative funding source
available to fund the project; and
``(v) the sponsor's decision to proceed with the project in
advance of execution of the grant agreement does not affect
the priority assigned to the project by the Secretary for the
allocation of discretionary funds;''.
(b) Inclusion of Measures to Improve Efficiency of Airport
Buildings in Airport Improvement Projects.--Section 47110(b)
is amended--
(1) in paragraph (5) by striking ``; and'' and inserting a
semicolon;
(2) in paragraph (6) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) if the cost is incurred on a measure to improve the
efficiency of an airport building (such as a measure designed
to meet one or more of the criteria for being considered a
high-performance green building as set forth under section
401(13) of the Energy Independence and Security Act of 2007
(42 U.S.C. 17061(13))) and--
``(A) the measure is for a project for airport development;
``(B) the measure is for an airport building that is
otherwise eligible for construction assistance under this
subchapter; and
``(C) if the measure results in an increase in initial
project costs, the increase is justified by expected savings
over the life cycle of the project.''.
(c) Relocation of Airport-Owned Facilities.--Section
47110(d) is amended to read as follows:
``(d) Relocation of Airport-Owned Facilities.--The
Secretary may determine that the costs of relocating or
replacing an airport-owned facility are allowable for an
airport development project at an airport only if--
``(1) the Government's share of such costs will be paid
with funds apportioned to the airport sponsor under section
47114(c)(1) or 47114(d);
``(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.''.
(d) Nonprimary Airports.--Section 47110(h) is amended--
(1) by inserting ``construction'' before ``costs of revenue
producing''; and
(2) by striking ``, including fuel farms and hangars,''.

[[Page H235]]

(e) Bird-Detecting Radar Systems.--Section 47110 is amended
by adding at the end the following:
``(i) Bird-Detecting Radar Systems.--The Administrator of
the Federal Aviation Administration, upon the conclusion of
all planned research by the Administration regarding avian
radar systems, shall--
``(1) update Advisory Circular No. 150/5220-25 to specify
which systems have been studied; and
``(2) within 180 days after such research is concluded,
issue a final report on the use of avian radar systems in the
national airspace system.''.

SEC. 139. VETERANS' PREFERENCE.

Section 47112(c) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B) by striking ``separated from'' and
inserting ``discharged or released from active duty in''; and
(B) by adding at the end the following:
``(C) `Afghanistan-Iraq war veteran' means an individual
who served on active duty (as defined in section 101 of title
38) in the armed forces in support of Operation Enduring
Freedom, Operation Iraqi Freedom, or Operation New Dawn for
more than 180 consecutive days, any part of which occurred
after September 11, 2001, and before the date prescribed by
presidential proclamation or by law as the last day of
Operation Enduring Freedom, Operation Iraqi Freedom, or
Operation New Dawn (whichever is later), and who was
discharged or released from active duty in the armed forces
under honorable conditions.
``(D) `Persian Gulf veteran' means an individual who served
on active duty in the armed forces in the Southwest Asia
theater of operations during the Persian Gulf War for more
than 180 consecutive days, any part of which occurred after
August 2, 1990, and before the date prescribed by
presidential proclamation or by law, and who was discharged
or released from active duty in the armed forces under
honorable conditions.''; and
(2) in paragraph (2) by striking ``Vietnam-era veterans and
disabled veterans'' and inserting ``Vietnam-era veterans,
Persian Gulf veterans, Afghanistan-Iraq war veterans,
disabled veterans, and small business concerns (as defined in
section 3 of the Small Business Act (15 U.S.C. 632)) owned
and controlled by disabled veterans''.

SEC. 140. MINORITY AND DISADVANTAGED BUSINESS PARTICIPATION.

(a) Findings.--Congress finds the following:
(1) While significant progress has occurred due to the
establishment of the airport disadvantaged business
enterprise program (49 U.S.C. 47107(e) and 47113),
discrimination and related barriers continue to pose
significant obstacles for minority- and women-owned
businesses seeking to do business in airport-related markets
across the Nation. These continuing barriers merit the
continuation of the airport disadvantaged business enterprise
program.
(2) Congress has received and reviewed testimony and
documentation of race and gender discrimination from numerous
sources, including congressional hearings and roundtables,
scientific reports, reports issued by public and private
agencies, news stories, reports of discrimination by
organizations and individuals, and discrimination lawsuits.
This testimony and documentation shows that race- and gender-
neutral efforts alone are insufficient to address the
problem.
(3) This testimony and documentation demonstrates that
discrimination across the Nation poses a barrier to full and
fair participation in airport-related businesses of women
business owners and minority business owners in the racial
groups detailed in parts 23 and 26 of title 49, Code of
Federal Regulations, and has impacted firm development and
many aspects of airport-related business in the public and
private markets.
(4) This testimony and documentation provides a strong
basis that there is a compelling need for the continuation of
the airport disadvantaged business enterprise program and the
airport concessions disadvantaged business enterprise program
to address race and gender discrimination in airport-related
business.
(b) Standardizing Certification of Disadvantaged Business
Enterprises.--Section 47113 is amended by adding at the end
the following:
``(e) Mandatory Training Program.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall establish a
mandatory training program for persons described in paragraph
(3) to provide streamlined training on certifying whether a
small business concern qualifies as a small business concern
owned and controlled by socially and economically
disadvantaged individuals under this section and section
47107(e).
``(2) Implementation.--The training program may be
implemented by one or more private entities approved by the
Secretary.
``(3) Participants.--A person referred to in paragraph (1)
is an official or agent of an airport sponsor--
``(A) who is required to provide a written assurance under
this section or section 47107(e) that the airport owner or
operator will meet the percentage goal of subsection (b) of
this section or section 47107(e)(1), as the case may be; or
``(B) who is responsible for determining whether or not a
small business concern qualifies as a small business concern
owned and controlled by socially and economically
disadvantaged individuals under this section or section
47107(e).''.
(c) Inspector General Report on Participation in FAA
Programs by Disadvantaged Small Business Concerns.--
(1) In general.--For each of fiscal years 2013 through
2015, the Inspector General of the Department of
Transportation shall submit to Congress a report on the
number of new small business concerns owned and controlled by
socially and economically disadvantaged individuals,
including those owned by veterans, that participated in the
programs and activities funded using the amounts made
available under this Act.
(2) New small business concerns.--For purposes of
subsection (a), a new small business concern is a small
business concern that did not participate in the programs and
activities described in subsection (a) in a previous fiscal
year.
(3) Contents.--The report shall include--
(A) a list of the top 25 and bottom 25 large and medium hub
airports in terms of providing opportunities for small
business concerns owned and controlled by socially and
economically disadvantaged individuals to participate in the
programs and activities funded using the amounts made
available under this Act;
(B) the results of an assessment, to be conducted by the
Inspector General, on the reasons why the top airports have
been successful in providing such opportunities; and
(C) recommendations to the Administrator of the Federal
Aviation Administration and Congress on methods for other
airports to achieve results similar to those of the top
airports.

SEC. 141. SPECIAL APPORTIONMENT RULES.

(a) Eligibility To Receive Primary Airport Minimum
Apportionment Amount.--Section 47114(d) is amended by adding
at the end the following:
``(7) Eligibility to receive primary airport minimum
apportionment amount.--Notwithstanding any other provision of
this subsection, the Secretary may apportion to an airport
sponsor in a fiscal year an amount equal to the minimum
apportionment available under subsection (c)(1)(B) if the
Secretary finds that the airport--
``(A) received scheduled or unscheduled air service from a
large certificated air carrier (as defined in part 241 of
title 14, Code of Federal Regulations, or such other
regulations as may be issued by the Secretary under the
authority of section 41709) in the calendar year used to
calculate the apportionment; and
``(B) had more than 10,000 passenger boardings in the
calendar year used to calculate the apportionment.''.
(b) Special Rule for Fiscal Years 2012 and 2013.--Section
47114(c)(1) is amended--
(1) by striking subparagraphs (F) and (G); and
(2) by inserting after subparagraph (E) the following:
``(F) Special rule for fiscal years 2012 and 2013.--
Notwithstanding subparagraph (A), for an airport that had
more than 10,000 passenger boardings and scheduled passenger
aircraft service in calendar year 2007, but in either
calendar year 2009 or 2010, or in both years, the number of
passenger boardings decreased to a level below 10,000
boardings per year at such airport, the Secretary may
apportion in each of fiscal years 2012 and 2013 to the
sponsor of such airport an amount equal to the amount
apportioned to that sponsor in fiscal year 2009.''.

SEC. 142. UNITED STATES TERRITORIES MINIMUM GUARANTEE.

Section 47114 is amended by adding at the end the
following:
``(g) Supplemental Apportionment for Puerto Rico and United
States Territories.--The Secretary shall apportion amounts
for airports in Puerto Rico and all other United States
territories in accordance with this section. This subsection
does not prohibit the Secretary from making project grants
for airports in Puerto Rico or other United States
territories from the discretionary fund under section
47115.''.

SEC. 143. REDUCING APPORTIONMENTS.

Section 47114(f)(1) is amended by striking subparagraphs
(A) and (B) and inserting the following:
``(A) in the case of a charge of $3.00 or less--
``(i) except as provided in clause (ii), 50 percent of the
projected revenues from the charge in the fiscal year but not
by more than 50 percent of the amount that otherwise would be
apportioned under this section; or
``(ii) with respect to an airport in Hawaii, 50 percent of
the projected revenues from the charge in the fiscal year but
not by more than 50 percent of the excess of--

``(I) the amount that otherwise would be apportioned under
this section; over
``(II) the amount equal to the amount specified in
subclause (I) multiplied by the percentage of the total
passenger boardings at the applicable airport that are
comprised of interisland passengers; and

``(B) in the case of a charge of more than $3.00--
``(i) except as provided in clause (ii), 75 percent of the
projected revenues from the charge in the fiscal year but not
by more than 75 percent of the amount that otherwise would be
apportioned under this section; or
``(ii) with respect to an airport in Hawaii, 75 percent of
the projected revenues from the charge in the fiscal year but
not by more than 75 percent of the excess of--

SEC. 144. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

Section 47115(j) is amended by striking ``For fiscal
years'' and all that follows before ``the sponsors'' and
inserting ``For fiscal years 2012 through 2015,''.

SEC. 145. USE OF APPORTIONED AMOUNTS.

Section 47117(e)(1)(A) is amended--

[[Page H236]]

(1) by striking ``35 percent'' in the first sentence and
inserting ``35 percent, but not more than $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''.

SEC. 146. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

(a) Considerations.--Section 47118(c) is amended--
(1) in paragraph (1) by striking ``or'' after the
semicolon;
(2) in paragraph (2) by striking ``delays.'' and inserting
``delays; or''; and
(3) by adding at the end the following:
``(3) preserve or enhance minimum airfield infrastructure
facilities at former military airports to support emergency
diversionary operations for transoceanic flights in
locations--
``(A) within United States jurisdiction or control; and
``(B) where there is a demonstrable lack of diversionary
airports within the distance or flight-time required by
regulations governing transoceanic flights.''.
(b) Designation of General Aviation Airports.--Section
47118(g) is amended--
(1) in the subsection heading by striking ``Airport'' and
inserting ``Airports''; and
(2) by striking ``one of the airports bearing a designation
under subsection (a) may be a general aviation airport that
was a former military installation'' and inserting ``3 of the
airports bearing designations under subsection (a) may be
general aviation airports that were former military
installations''.
(c) Safety-Critical Airports.--Section 47118 is amended by
adding at the end the following:
``(h) Safety-Critical Airports.--Notwithstanding any other
provision of this chapter, a grant under section
47117(e)(1)(B) may be made for a federally owned airport
designated under subsection (a) if the grant is for a project
that is--
``(1) to preserve or enhance minimum airfield
infrastructure facilities described in subsection (c)(3); and
``(2) necessary to meet the minimum safety and emergency
operational requirements established under part 139 of title
14, Code of Federal Regulations.''.

SEC. 147. CONTRACT TOWER PROGRAM.

(a) Cost-Benefit Requirement.--Section 47124(b) is
amended--
(1) in paragraph (1)--
(A) by striking ``(1) The Secretary'' and inserting the
following:
``(1) Contract tower program.--
``(A) Continuation.--The Secretary''; and
(B) by adding at the end the following:
``(B) Special rule.--If the Secretary determines that a
tower already operating under the program continued under
this paragraph 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) Use of excess funds.--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).''; and
(2) in paragraph (2) by striking ``(2) The Secretary'' and
inserting the following:
``(2) General authority.--The Secretary''.
(b) Funding; Use of Excess Funds.--Section 47124(b)(3) is
amended by striking subparagraph (E) and inserting the
following:
``(E) Funding.--Of the amounts appropriated pursuant to
section 106(k)(1), not more than $10,350,000 for each of
fiscal years 2012 through 2015 may be used to carry out this
paragraph.
``(F) Use of excess funds.--If the Secretary finds that all
or part of an amount made available 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 continued under paragraph (1).''.
(c) Federal Share.--Section 47124(b)(4)(C) is amended by
striking ``$1,500,000'' and inserting ``$2,000,000''.
(d) Safety Audits.--Section 47124 is amended by adding at
the end the following:
``(c) Safety Audits.--The Secretary shall establish uniform
standards and requirements for regular safety assessments of
air traffic control towers that receive funding under this
section.''.

SEC. 148. RESOLUTION OF DISPUTES CONCERNING AIRPORT FEES.

(a) In General.--Section 47129 is amended--
(1) by striking the section heading and inserting the
following:

``Sec. 47129. Resolution of disputes concerning airport
fees'';

(2) by inserting ``and Foreign Air Carrier'' after
``Carrier'' in the heading for subsection (d);
(3) by inserting ``and foreign air carrier'' after
``carrier'' in the heading 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)''.
(b) Conforming Amendment.--The analysis for chapter 471 is
amended by striking the item relating to section 47129 and
inserting the following:

``47129. Resolution of disputes concerning airport fees.''.

SEC. 149. SALE OF PRIVATE AIRPORTS TO PUBLIC SPONSORS.

(a) In General.--Section 47133(b) is amended--
(1) by striking ``Subsection (a) shall not apply if'' and
inserting the following:
``(1) Prior laws and agreements.--Subsection (a) shall not
apply if''; and
(2) by adding at the end the following:
``(2) Sale of private airport to public sponsor.--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 subchapter for any
portion of the public sponsor's acquisition of airport land;
and
``(C) an amount equal to the remaining unamortized portion
of any airport improvement grant made to that airport for
purposes other than land acquisition, amortized over a 20-
year period, plus an amount equal to the Federal share of the
current fair market value of any land acquired with an
airport improvement grant made to that airport on or after
October 1, 1996, is repaid to the Secretary by the private
owner.
``(3) Treatment of repayments.--Repayments referred to in
paragraph (2)(C) shall be treated as a recovery of prior year
obligations.''.
(b) Applicability to Grants.--The amendments made by
subsection (a) shall apply to grants issued on or after
October 1, 1996.

SEC. 150. REPEAL OF CERTAIN LIMITATIONS ON METROPOLITAN
WASHINGTON AIRPORTS AUTHORITY.

Section 49108, and the item relating to section 49108 in
the analysis for chapter 491, are repealed.

SEC. 151. MIDWAY ISLAND AIRPORT.

Section 186(d) of the Vision 100--Century of Aviation
Reauthorization Act (117 Stat. 2518) is amended by striking
``for fiscal years'' and all that follows before ``from
amounts'' and inserting ``for fiscal years 2012 through
2015''.

SEC. 152. MISCELLANEOUS AMENDMENTS.

(a) Technical Changes to National Plan of Integrated
Airport Systems.--Section 47103 is amended--
(1) in subsection (a)--
(A) by striking ``each airport to--'' and inserting ``the
airport system to--'';
(B) in paragraph (1) by striking ``system in the particular
area;'' and inserting ``system, including connection to the
surface transportation network; and'';
(C) in paragraph (2) by striking ``; and'' and inserting a
period; and
(D) by striking paragraph (3);
(2) in subsection (b)--
(A) in paragraph (1) by striking the semicolon and
inserting ``; and'';
(B) by striking paragraph (2) and redesignating paragraph
(3) as paragraph (2); and
(C) in paragraph (2) (as so redesignated) by striking ``,
Short Takeoff and Landing/Very Short Takeoff and Landing
aircraft operations,''; and
(3) in subsection (d) by striking ``status of the''.
(b) Consolidation of Terminal Development Provisions.--
Section 47119 is amended--
(1) by redesignating subsections (a), (b), (c), and (d) as
subsections (b), (c), (d), and (e), respectively;
(2) by inserting before subsection (b) (as so redesignated)
the following:
``(a) Terminal Development Projects.--
``(1) In general.--The Secretary of Transportation may
approve a project for terminal development (including
multimodal terminal development) in a nonrevenue-producing
public-use area of a commercial service airport--
``(A) if the sponsor certifies that the airport, on the
date the grant application is submitted to the Secretary,
has--
``(i) all the safety equipment required for certification
of the airport under section 44706;
``(ii) all the security equipment required by regulation;
and
``(iii) provided for access by passengers to the area of
the airport for boarding or exiting aircraft that are not air
carrier aircraft;
``(B) if the cost is directly related to moving passengers
and baggage in air commerce within the airport, including
vehicles for moving passengers between terminal facilities
and between terminal facilities and aircraft; and
``(C) under terms necessary to protect the interests of the
Government.
``(2) Project in revenue-producing areas and nonrevenue-
producing parking lots.--In making a decision under paragraph
(1), the Secretary may approve as allowable costs the
expenses of terminal development in a revenue-producing area
and construction, reconstruction, repair, and improvement in
a nonrevenue-producing parking lot if--
``(A) except as provided in section 47108(e)(3), the
airport does not have more than .05 percent of the total
annual passenger boardings in the United States; and
``(B) the sponsor certifies that any needed airport
development project affecting safety, security, or capacity
will not be deferred because of the Secretary's approval.'';
(3) in subsection (b)(4)(B) (as redesignated by paragraph
(1) of this subsection) by striking ``Secretary of
Transportation'' and inserting ``Secretary'';

[[Page H237]]

(4) in subsections (b)(3) and (b)(4)(A) (as redesignated by
paragraph (1) of this subsection) by striking ``section
47110(d)'' and inserting ``subsection (a)'';
(5) in subsection (b)(5) (as redesignated by paragraph (1)
of this subsection) by striking ``subsection (b)(1) and (2)''
and inserting ``subsections (c)(1) and (c)(2)'';
(6) in subsections (c)(1), (c)(2)(A), (c)(3), and (c)(4)
(as redesignated by paragraph (1) of this subsection) by
striking ``section 47110(d) of this title'' and inserting
``subsection (a)'';
(7) in subsections (c)(2)(B) and (c)(5) (as redesignated by
paragraph (1) of this subsection) by striking ``section
47110(d)'' and inserting ``subsection (a)''; and
(8) by adding at the end the following:
``(f) Limitation on Discretionary Funds.--The Secretary may
distribute not more than $20,000,000 from the discretionary
fund established under section 47115 for terminal development
projects at a nonhub airport or a small hub airport that is
eligible to receive discretionary funds under section
47108(e)(3).''.
(c) Annual Report.--Section 47131(a) is amended--
(1) by striking ``April 1'' and inserting ``June 1''; and
(2) by striking paragraphs (1), (2), (3), and (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) Correction to Emission Credits Provision.--Section
47139 is amended--
(1) in subsection (a) by striking ``47102(3)(F),''; and
(2) in subsection (b)--
(A) by striking ``47102(3)(F),''; and
(B) by striking ``47103(3)(F),''.
(e) Conforming Amendments.--
(1) Section 40117(a)(3)(B) is amended by striking ``section
47110(d)'' and inserting ``section 47119(a)''.
(2) Section 47108(e)(3) is amended--
(A) by striking ``section 47110(d)(2)'' and inserting
``section 47119(a)''; and
(B) by striking ``section 47110(d)'' and inserting
``section 47119(a)''.
(f) Correction to Surplus Property Authority.--Section
47151(e) is amended by striking ``(other than real property''
and all that follows through ``(10 U.S.C. 2687 note))''.
(g) Definitions.--
(1) Congested airport.--Section 47175(2) is amended by
striking ``2001'' and inserting ``2004 or any successor
report''.
(2) Joint use airport.--Section 47175 is amended by adding
at the end the following:
``(7) Joint use airport.--The term `joint use airport'
means an airport owned by the Department of Defense, at which
both military and civilian aircraft make shared use of the
airfield.''.

SEC. 153. EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND
USE PLANNING AND PROJECTS BY STATE AND LOCAL
GOVERNMENTS.

Section 47141(f) is amended to read as follows:
``(f) Sunset.--This section shall not be in effect after
September 30, 2015.''.

SEC. 154. PRIORITY REVIEW OF CONSTRUCTION PROJECTS IN COLD
WEATHER STATES.

The Administrator of the Federal Aviation Administration,
to the extent practicable, shall schedule the Administrator's
review of construction projects so that projects to be
carried out in States in which the weather during a typical
calendar year prevents major construction projects from being
carried out before May 1 are reviewed as early as possible.

SEC. 155. STUDY ON NATIONAL PLAN OF INTEGRATED AIRPORT
SYSTEMS.

(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Secretary of Transportation shall
begin a study to evaluate the formulation of the national
plan of integrated airport systems (in this section referred
to as the ``plan'') under section 47103 of title 49, United
States Code.
(b) Contents of Study.--The study shall include a review of
the following:
(1) The criteria used for including airports in the plan
and the application of such criteria in the most recently
published version of the plan.
(2) The changes in airport capital needs as shown in the
2005-2009 and 2007-2011 plans, compared with the amounts
apportioned or otherwise made available to individual
airports between 2005 and 2010.
(3) A comparison of the amounts received by airports under
the airport improvement program in airport apportionments,
State apportionments, and discretionary grants during such
fiscal years with capital needs as reported in the plan.
(4) The effect of transfers of airport apportionments under
title 49, United States Code.
(5) An analysis on the feasibility and advisability of
apportioning amounts under section 47114(c)(1) of title 49,
United States Code, to the sponsor of each primary airport
for each fiscal year an amount that bears the same ratio to
the amount subject to the apportionment for fiscal year 2009
as the number of passenger boardings at the airport during
the prior calendar year bears to the aggregate of all
passenger boardings at all primary airports during that
calendar year.
(6) A documentation and review of the methods used by
airports to reach the 10,000 passenger enplanement threshold,
including whether such airports subsidize commercial flights
to reach such threshold, at every airport in the United
States that reported between 10,000 and 15,000 passenger
enplanements during each of the 2 most recent calendar years
for which such data is available.
(7) Any other matters pertaining to the plan that the
Secretary determines appropriate.
(c) Report to Congress.--
(1) Submission.--Not later than 36 months after the date
that the Secretary begins the study under this section, the
Secretary shall submit to 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 results of the study.
(2) Contents.--The report shall include--
(A) the findings of the Secretary on each of the issues
described in subsection (b);
(B) recommendations for any changes to policies and
procedures for formulating the plan; and
(C) recommendations for any changes to the methods of
determining the amounts to be apportioned or otherwise made
available to individual airports.

SEC. 156. AIRPORT PRIVATIZATION PROGRAM.

Section 47134(b) is amended in the matter preceding
paragraph (1) by striking ``5 airports'' and inserting ``10
airports''.

TITLE II--NEXTGEN AIR TRANSPORTATION SYSTEM AND AIR TRAFFIC CONTROL
MODERNIZATION

SEC. 201. DEFINITIONS.

In this title, the following definitions apply:
(1) Nextgen.--The term ``NextGen'' means the Next
Generation Air Transportation System.
(2) ADS-B.--The term ``ADS-B'' means automatic dependent
surveillance-broadcast.
(3) ADS-B Out.--The term ``ADS-B Out'' means automatic
dependent surveillance-broadcast with the ability to transmit
information from the aircraft to ground stations and to other
equipped aircraft.
(4) ADS-B In.--The term ``ADS-B In'' means automatic
dependent surveillance-broadcast with the ability to transmit
information from the aircraft to ground stations and to other
equipped aircraft as well as the ability of the aircraft to
receive information from other transmitting aircraft and the
ground infrastructure.
(5) RNAV.--The term ``RNAV'' means area navigation.
(6) RNP.--The term ``RNP'' means required navigation
performance.

SEC. 202. NEXTGEN DEMONSTRATIONS AND CONCEPTS.

In allocating amounts appropriated pursuant to section
48101(a) of title 49, United States Code, the Secretary of
Transportation shall give priority to the following NextGen
activities:
(1) Next Generation Transportation System--Demonstrations
and Infrastructure Development.
(2) Next Generation Transportation System--Trajectory Based
Operations.
(3) Next Generation Transportation System--Reduce Weather
Impact.
(4) Next Generation Transportation System--Arrivals/
Departures at High Density Airports.
(5) Next Generation Transportation System--Collaborative
ATM.
(6) Next Generation Transportation System--Flexible
Terminals and Airports.
(7) Next Generation Transportation System--Safety,
Security, and Environment.
(8) Next Generation Transportation System--Systems Network
Facilities.
(9) Center for Advanced Aviation System Development.
(10) Next Generation Transportation System--System
Development.
(11) Data Communications in support of Next Generation Air
Transportation System.
(12) ADS-B NAS-Wide Implementation.
(13) System-Wide Information Management.
(14) Next Generation Transportation System--Facility
Consolidation and Realignment.
(15) En Route Modernization--D-Position Upgrade and System
Enhancements.
(16) National Airspace System Voice System.
(17) Next Generation Network Enabled Weather.
(18) NextGen Performance Based Navigation Metroplex Area
Navigation/Required Navigation Performance.

SEC. 203. CLARIFICATION OF AUTHORITY TO ENTER INTO
REIMBURSABLE AGREEMENTS.

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

SEC. 204. CHIEF NEXTGEN OFFICER.

Section 106 is amended by adding at the end the following:
``(s) Chief NextGen Officer.--
``(1) In general.--
``(A) Appointment.--There shall be a Chief NextGen Officer
appointed by the Administrator, with the approval of the
Secretary. The Chief NextGen Officer shall report directly to
the Administrator and shall be subject to the authority of
the Administrator.
``(B) Qualifications.--The Chief NextGen Officer shall have
a demonstrated ability in management and knowledge of or
experience in aviation and systems engineering.
``(C) Term.--The Chief NextGen Officer shall be appointed
for a term of 5 years.
``(D) Removal.--The Chief NextGen Officer shall serve at
the pleasure of the Administrator, except that the
Administrator shall make every effort to ensure stability and
continuity in the leadership of the implementation of
NextGen.
``(E) Vacancy.--Any individual appointed to fill a vacancy
in the position of Chief NextGen Officer occurring before the
expiration of the term for which the individual's predecessor
was appointed shall be appointed for the remainder of that
term.
``(2) Compensation.--
``(A) In general.--The Chief NextGen Officer shall be paid
at an annual rate of basic pay to be determined by the
Administrator. The annual rate may not exceed the annual
compensation paid under section 102 of title 3. The Chief

[[Page H238]]

NextGen Officer shall be subject to the postemployment
provisions of section 207 of title 18 as if the position of
Chief NextGen Officer were described in section
207(c)(2)(A)(i) of that title.
``(B) Bonus.--In addition to the annual rate of basic pay
authorized by subparagraph (A), the Chief NextGen Officer may
receive a bonus for any calendar year not to exceed 30
percent of the annual rate of basic pay, based upon the
Administrator's evaluation of the Chief NextGen Officer's
performance in relation to the performance goals set forth in
the performance agreement described in paragraph (3).
``(3) Annual performance agreement.--The Administrator and
the Chief NextGen Officer, in consultation with the Federal
Aviation Management Advisory Council, shall enter into an
annual performance agreement that sets forth measurable
organization and individual goals for the Chief NextGen
Officer in key operational areas. The agreement shall be
subject to review and renegotiation on an annual basis.
``(4) Annual performance report.--The Chief NextGen Officer
shall prepare and transmit to the Secretary of
Transportation, the Committee on Transportation and
Infrastructure of the House of Representatives, the Committee
on Science, Space, and Technology of the House of
Representatives, and the Committee on Commerce, Science, and
Transportation of the Senate an annual management report
containing such information as may be prescribed by the
Secretary.
``(5) Responsibilities.--The responsibilities of the Chief
NextGen Officer include the following:
``(A) Implementing NextGen activities and budgets across
all program offices of the Federal Aviation Administration.
``(B) Coordinating the implementation of NextGen activities
with the Office of Management and Budget.
``(C) Reviewing and providing advice on the
Administration's modernization programs, budget, and cost
accounting system with respect to NextGen.
``(D) With respect to the budget of the Administration--
``(i) developing a budget request of the Administration
related to the implementation of NextGen;
``(ii) submitting such budget request to the Administrator;
and
``(iii) ensuring that the budget request supports the
annual and long-range strategic plans of the Administration
with respect to NextGen.
``(E) Consulting with the Administrator on the Capital
Investment Plan of the Administration prior to its submission
to Congress.
``(F) Developing an annual NextGen implementation plan.
``(G) Ensuring that NextGen implementation activities are
planned in such a manner as to require that system
architecture is designed to allow for the incorporation of
novel and currently unknown technologies into NextGen in the
future and that current decisions do not bias future
decisions unfairly in favor of existing technology at the
expense of innovation.
``(H) Coordinating with the NextGen Joint Planning and
Development Office with respect to facilitating cooperation
among all Federal agencies whose operations and interests are
affected by the implementation of NextGen.
``(6) Exception.--If the Administrator appoints as the
Chief NextGen Officer, pursuant to paragraph (1)(A), an
Executive Schedule employee covered by section 5315 of title
5, then paragraphs (1)(B), (1)(C), (2), and (3) of this
subsection shall not apply to such employee.
``(7) Nextgen defined.--For purposes of this subsection,
the term `NextGen' means the Next Generation Air
Transportation System.''.

SEC. 205. DEFINITION OF AIR NAVIGATION FACILITY.

Section 40102(a)(4) is amended--
(1) by redesignating subparagraph (D) as subparagraph (E);
(2) by striking subparagraphs (B) and (C); and
(3) by inserting after subparagraph (A) the following:
``(B) runway lighting and airport surface visual and other
navigation aids;
``(C) apparatus, equipment, software, or service for
distributing aeronautical and meteorological information to
air traffic control facilities or aircraft;
``(D) communication, navigation, or surveillance equipment
for air-to-ground or air-to-air applications;'';
(4) in subparagraph (E) (as redesignated by paragraph (1)
of this section)--
(A) by striking ``another structure'' and inserting ``any
structure, equipment,''; and
(B) by striking the period at the end and inserting ``;
and''; and
(5) by adding at the end the following:
``(F) buildings, equipment, and systems dedicated to the
national airspace system.''.

SEC. 206. 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. 207. ASSISTANCE TO FOREIGN AVIATION AUTHORITIES.

Section 40113(e) is amended--
(1) in paragraph (1)--
(A) by inserting ``(whether public or private)'' after
``authorities''; and
(B) by striking ``safety.'' 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 section
106(l)(6).'';
(2) in paragraph (2) by adding at the end the following:
``The Administrator is authorized, notwithstanding any other
provision of law or policy, to accept payments for services
provided under this subsection in arrears.''; and
(3) by striking paragraph (3) and inserting the following:
``(3) Crediting appropriations.--Funds received by the
Administrator pursuant to this section shall--
``(A) be credited to the appropriation current when the
amount is received;
``(B) be merged with and available for the purposes of such
appropriation; and
``(C) remain available until expended.''.

SEC. 208. NEXT GENERATION AIR TRANSPORTATION SYSTEM JOINT
PLANNING AND DEVELOPMENT OFFICE.

(a) Redesignation of JPDO Director to Associate
Administrator.--
(1) Associate administrator for next generation air
transportation system planning, development, and interagency
coordination.--Section 709(a) of the Vision 100--Century of
Aviation Reauthorization Act (49 U.S.C. 40101 note; 117 Stat.
2582) is amended--
(A) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) The head of the Office shall be the Associate
Administrator for Next Generation Air Transportation System
Planning, Development, and Interagency Coordination, who
shall be appointed by the Administrator of the Federal
Aviation Administration, with the approval of the Secretary.
The Administrator shall appoint the Associate Administrator
after consulting with the Chairman of the Next Generation
Senior Policy Committee and providing advanced notice to the
other members of that Committee.''.
(2) Responsibilities.--Section 709(a)(3) of such Act (as
redesignated by paragraph (1) of this subsection) is
amended--
(A) in subparagraph (G) by striking ``; and'' and inserting
a semicolon;
(B) in subparagraph (H) by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following:
``(I) establishing specific quantitative goals for the
safety, capacity, efficiency, performance, and environmental
impacts of each phase of Next Generation Air Transportation
System planning and development activities and measuring
actual operational experience against those goals, taking
into account noise pollution reduction concerns of affected
communities to the extent practicable in establishing the
environmental goals;
``(J) working to ensure global interoperability of the Next
Generation Air Transportation System;
``(K) working to ensure the use of weather information and
space weather information in the Next Generation Air
Transportation System as soon as possible;
``(L) overseeing, with the Administrator and in
consultation with the Chief NextGen Officer, the selection of
products or outcomes of research and development activities
that should be moved to a demonstration phase; and
``(M) maintaining a baseline modeling and simulation
environment for testing and evaluating alternative concepts
to satisfy Next Generation Air Transportation System
enterprise architecture requirements.''.
(3) Cooperation with other federal agencies.--Section
709(a)(4) of such Act (as redesignated by paragraph (1) of
this subsection) is amended--
(A) by striking ``(4)'' and inserting ``(4)(A)''; and
(B) by adding at the end the following:
``(B) 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 Federal agency from which the Secretary of
Transportation requests assistance under subparagraph (A)
shall designate a senior official in the agency to be
responsible for--
``(i) carrying out the activities of the agency relating to
the Next Generation Air Transportation System in coordination
with the Office, including the execution of all aspects of
the work of the agency in developing and implementing the
integrated work plan described in subsection (b)(5);
``(ii) serving as a liaison for the agency in activities of
the agency relating to the Next Generation Air Transportation
System and coordinating with other Federal agencies involved
in activities relating to the System; and
``(iii) ensuring that the agency meets its obligations as
set forth in any memorandum of understanding executed by or
on behalf of the agency relating to the Next Generation Air
Transportation System.
``(C) The head of a Federal agency referred to in
subparagraph (B) shall--
``(i) ensure that the responsibilities of the agency
relating to the Next Generation Air Transportation System are
clearly communicated to the senior official of the agency
designated under subparagraph (B);
``(ii) ensure that the performance of the senior official
in carrying out the responsibilities of the agency relating
to the Next Generation Air Transportation System is reflected
in the official's annual performance evaluations and
compensation;
``(iii) establish or designate an office within the agency
to carry out its responsibilities under the memorandum of
understanding under the supervision of the designated
official; and
``(iv) ensure that the designated official has sufficient
budgetary authority and staff resources to carry out the
agency's Next Generation Air Transportation System
responsibilities as set forth in the integrated plan under
subsection (b).
``(D) Not later than 6 months after the date of enactment
of this subparagraph, the head of

[[Page H239]]

each Federal agency that has responsibility for carrying out
any activity under the integrated plan under subsection (b)
shall execute a memorandum of understanding with the Office
obligating that agency to carry out the activity.''.
(4) Coordination with omb.--Section 709(a) of such Act (117
Stat. 2582) is further amended by adding at the end the
following:
``(6)(A) The Office shall work with the Director of the
Office of Management and Budget to develop a process whereby
the Director will identify projects related to the Next
Generation Air Transportation System across the agencies
referred to in paragraph (4)(A) and consider the Next
Generation Air Transportation System as a unified, cross-
agency program.
``(B) The Director of the Office of Management and Budget,
to the extent practicable, shall--
``(i) ensure that--
``(I) each Federal agency covered by the plan has
sufficient funds requested in the President's budget, as
submitted under section 1105(a) of title 31, United States
Code, for each fiscal year covered by the plan to carry out
its responsibilities under the plan; and
``(II) the development and implementation of the Next
Generation Air Transportation System remains on schedule;
``(ii) include, in the President's budget, a statement of
the portion of the estimated budget of each Federal agency
covered by the plan that relates to the activities of the
agency under the Next Generation Air Transportation System;
and
``(iii) identify and justify as part of the President's
budget submission any inconsistencies between the plan and
amounts requested in the budget.
``(7) The Associate Administrator for Next Generation Air
Transportation System Planning, Development, and Interagency
Coordination shall be a voting member of the Joint Resources
Council of the Federal Aviation Administration.''.
(b) Integrated Plan.--Section 709(b) of such Act (117 Stat.
2583) is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``meets air'' and inserting ``meets
anticipated future air''; and
(B) by striking ``beyond those currently included in the
Federal Aviation Administration's operational evolution
plan'';
(2) at the end of paragraph (3) by striking ``and'';
(3) at the end of paragraph (4) by striking the period and
inserting ``; and''; and
(4) by adding at the end the following:
``(5) a multiagency integrated work plan for the Next
Generation Air Transportation System that includes--
``(A) an outline of the activities required to achieve the
end-state architecture, as expressed in the concept of
operations and enterprise architecture documents, that
identifies each Federal agency or other entity responsible
for each activity in the outline;
``(B) details on a year-by-year basis of specific
accomplishments, activities, research requirements,
rulemakings, policy decisions, and other milestones of
progress for each Federal agency or entity conducting
activities relating to the Next Generation Air Transportation
System;
``(C) for each element of the Next Generation Air
Transportation System, an outline, on a year-by-year basis,
of what is to be accomplished in that year toward meeting the
Next Generation Air Transportation System's end-state
architecture, as expressed in the concept of operations and
enterprise architecture documents, as well as identifying
each Federal agency or other entity that will be responsible
for each component of any research, development, or
implementation program;
``(D) an estimate of all necessary expenditures on a year-
by-year basis, including a statement of each Federal agency
or entity's responsibility for costs and available resources,
for each stage of development from the basic research stage
through the demonstration and implementation phase;
``(E) a clear explanation of how each step in the
development of the Next Generation Air Transportation System
will lead to the following step and of the implications of
not successfully completing a step in the time period
described in the integrated work plan;
``(F) a transition plan for the implementation of the Next
Generation Air Transportation System that includes date-
specific milestones for the implementation of new
capabilities into the national airspace system;
``(G) date-specific timetables for meeting the
environmental goals identified in subsection (a)(3)(I); and
``(H) a description of potentially significant operational
or workforce changes resulting from deployment of the Next
Generation Air Transportation System.''.
(c) NextGen Implementation Plan.--Section 709(d) of such
Act (117 Stat. 2584) is amended to read as follows:
``(d) NextGen Implementation Plan.--The Administrator shall
develop and publish annually the document known as the
NextGen Implementation Plan, or any successor document, that
provides a detailed description of how the agency is
implementing the Next Generation Air Transportation
System.''.
(d) Contingency Planning.--The Associate Administrator for
Next Generation Air Transportation System Planning,
Development, and Interagency Coordination shall, as part of
the design of the System, develop contingency plans for
dealing with the degradation of the System in the event of a
natural disaster, major equipment failure, or act of
terrorism.

SEC. 209. NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY
COMMITTEE.

(a) Meetings.--Section 710(a) of the Vision 100--Century of
Aviation Reauthorization Act (49 U.S.C. 40101 note; 117 Stat.
2584) is amended by inserting before the period at the end
the following ``and shall meet at least twice each year''.
(b) Annual Report.--Section 710 of such Act (117 Stat.
2584) is amended by adding at the end the following:
``(e) Annual Report.--
``(1) Submission to congress.--Not later than 1 year after
the date of enactment of this subsection, and annually
thereafter on the date of submission of the President's
budget request to Congress under section 1105(a) of title 31,
United States Code, the Secretary shall submit to Congress a
report summarizing the progress made in carrying out the
integrated work plan required by section 709(b)(5) and any
changes in that plan.
``(2) Contents.--The report shall include--
``(A) a copy of the updated integrated work plan;
``(B) a description of the progress made in carrying out
the integrated work plan and any changes in that plan,
including any changes based on funding shortfalls and
limitations set by the Office of Management and Budget;
``(C) a detailed description of--
``(i) the success or failure of each item of the integrated
work plan for the previous year and relevant information as
to why any milestone was not met; and
``(ii) the impact of not meeting the milestone and what
actions will be taken in the future to account for the
failure to complete the milestone;
``(D) an explanation of any change to future years in the
integrated work plan and the reasons for such change; and
``(E) an identification of the levels of funding for each
agency participating in the integrated work plan devoted to
programs and activities under the plan for the previous
fiscal year and in the President's budget request.''.

SEC. 210. IMPROVED MANAGEMENT OF PROPERTY INVENTORY.

Section 40110(a) is amended by striking paragraphs (2) and
(3) and inserting the following:
``(2) may construct and improve laboratories and other test
facilities; and
``(3) may dispose of any interest in property for adequate
compensation, and the amount so received shall--
``(A) be credited to the appropriation current when the
amount is received;
``(B) be merged with and available for the purposes of such
appropriation; and
``(C) remain available until expended.''.

SEC. 211. AUTOMATIC DEPENDENT SURVEILLANCE-BROADCAST
SERVICES.

(a) Review by DOT Inspector General.--
(1) In general.--The Inspector General of the Department of
Transportation shall conduct a review concerning the Federal
Aviation Administration's award and oversight of any
contracts entered into by the Administration to provide ADS-B
services for the national airspace system.
(2) Contents.--The review shall include, at a minimum--
(A) an examination of how the Administration manages
program risks;
(B) an assessment of expected benefits attributable to the
deployment of ADS-B services, including the Administration's
plans for implementation of advanced operational procedures
and air-to-air applications, as well as the extent to which
ground radar will be retained;
(C) an assessment of the Administration's analysis of
specific operational benefits, and benefit/costs analyses of
planned operational benefits conducted by the Administration,
for ADS-B In and ADS-B Out avionics equipage for airspace
users;
(D) a determination of whether the Administration has
established sufficient mechanisms to ensure that all design,
acquisition, operation, and maintenance requirements have
been met by the contractor;
(E) an assessment of whether the Administration and any
contractors are meeting cost, schedule, and performance
milestones, as measured against the original baseline of the
Administration's program for providing ADS-B services;
(F) an assessment of how security issues are being
addressed in the overall design and implementation of the
ADS-B system;
(G) identification of any potential operational or
workforce changes resulting from deployment of ADS-B; and
(H) any other matters or aspects relating to contract
implementation and oversight that the Inspector General
determines merit attention.
(3) Reports to congress.--The Inspector General shall
submit, periodically (and on at least an annual basis), to
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
results of the review conducted under this subsection.
(b) Rulemaking.--
(1) ADS-B In.--Not later than 1 year after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall initiate a rulemaking
proceeding to issue guidelines and regulations relating to
ADS-B In technology that--
(A) identify the ADS-B In technology that will be required
under NextGen;
(B) subject to paragraph (2), require all aircraft
operating in capacity constrained airspace, at capacity
constrained airports, or in any other airspace deemed
appropriate by the Administrator to be equipped with ADS-B In
technology by 2020; and
(C) identify--
(i) the type of avionics required of aircraft for all
classes of airspace;
(ii) the expected costs associated with the avionics; and
(iii) the expected uses and benefits of the avionics.
(2) Readiness verification.--Before the Administrator
completes an ADS-B In equipage

[[Page H240]]

rulemaking proceeding or issues an interim or final rule
pursuant to paragraph (1), the Chief NextGen Officer shall
verify that--
(A) the necessary ground infrastructure is installed and
functioning properly;
(B) certification standards have been approved; and
(C) appropriate operational platforms interface safely and
efficiently.
(c) Use of ADS-B Technology.--
(1) Plans.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall develop, in
consultation with appropriate employee and industry groups, a
plan for the use of ADS-B technology for surveillance and
active air traffic control.
(2) Contents.--The plan shall--
(A) include provisions to test the use of ADS-B technology
for surveillance and active air traffic control in specific
regions of the United States with the most congested
airspace;
(B) identify the equipment required at air traffic control
facilities and the training required for air traffic
controllers;
(C) identify procedures, to be developed in consultation
with appropriate employee and industry groups, to conduct air
traffic management in mixed equipage environments; and
(D) establish a policy in test regions referred to in
subparagraph (A), in consultation with appropriate employee
and industry groups, to provide incentives for equipage with
ADS-B technology, including giving priority to aircraft
equipped with such technology before the 2020 equipage
deadline.

SEC. 212. EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR
NEXTGEN.

(a) Review.--The Administrator of the Federal Aviation
Administration shall enter into an arrangement with the
National Research Council to review the enterprise
architecture for the NextGen.
(b) Contents.--At a minimum, the review to be conducted
under subsection (a) shall--
(1) highlight the technical activities, including human-
system design, organizational design, and other safety and
human factor aspects of the system, that will be necessary to
successfully transition current and planned modernization
programs to the future system envisioned by the Joint
Planning and Development Office of the Administration;
(2) assess technical, cost, and schedule risk for the
software development that will be necessary to achieve the
expected benefits from a highly automated air traffic
management system and the implications for ongoing
modernization projects; and
(3) determine how risks with automation efforts for the
NextGen can be mitigated based on the experiences of other
public or private entities in developing complex, software-
intensive systems.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Transportation and Infrastructure of the House
of Representatives and the Committee on Commerce, Science,
and Transportation of the Senate a report containing the
results of the review conducted pursuant to subsection (a).

SEC. 213. ACCELERATION OF NEXTGEN TECHNOLOGIES.

(a) Operational Evolution Partnership (OEP) Airport
Procedures.--
(1) OEP airports report.--Not later than 6 months after the
date of enactment of this Act, the Administrator of the
Federal Aviation Administration shall publish a report, after
consultation with representatives of appropriate
Administration employee groups, airport operators, air
carriers, general aviation representatives, aircraft and
avionics manufacturers, and third parties that have received
letters of qualification from the Administration to design
and validate required navigation performance flight paths for
public use (in this section referred to as ``qualified third
parties'') that includes the following:
(A) RNP/RNAV operations for oep airports.--The required
navigation performance and area navigation operations,
including the procedures to be developed, certified, and
published and the air traffic control operational changes, to
maximize the fuel efficiency and airspace capacity of NextGen
commercial operations at each of the 35 operational evolution
partnership airports identified by the Administration and any
medium or small hub airport located within the same metroplex
area considered appropriate by the Administrator. The
Administrator shall, to the maximum extent practicable, avoid
overlays of existing flight procedures, but if unavoidable,
the Administrator shall clearly identify each required
navigation performance and area navigation procedure that is
an overlay of an existing instrument flight procedure and the
reason why such an overlay was used.
(B) Coordination and implementation activities for oep
airports.--A description of the activities and operational
changes and approvals required to coordinate and utilize the
procedures at OEP airports.
(C) Implementation plan for oep airports.--A plan for
implementing the procedures for OEP airports under
subparagraph (A) that establishes--
(i) clearly defined budget, schedule, project organization,
and leadership requirements;
(ii) specific implementation and transition steps;
(iii) baseline and performance metrics for--

(I) measuring the Administration's progress in implementing
the plan, including the percentage utilization of required
navigation performance in the national airspace system; and
(II) achieving measurable fuel burn and carbon dioxide
emissions reductions compared to current performance;

(iv) expedited environmental review procedures and
processes for timely environmental approval of area
navigation and required navigation performance that offer
significant efficiency improvements as determined by baseline
and performance metrics under clause (iii);
(v) coordination and communication mechanisms with
qualified third parties, if applicable;
(vi) plans to address human factors, training, and other
issues for air traffic controllers surrounding the adoption
of RNP procedures in the en route and terminal environments,
including in a mixed operational environment; and
(vii) a lifecycle management strategy for RNP procedures to
be developed by qualified third parties, if applicable.
(D) Additional procedures for oep airports.--A process for
the identification, certification, and publication of
additional required navigation performance and area
navigation procedures that may provide operational benefits
at OEP airports, and any medium or small hub airport located
within the same metroplex area as the OEP airport, in the
future.
(2) Implementation schedule for oep airports.--The
Administrator shall certify, publish, and implement--
(A) not later than 18 months after the date of enactment of
this Act, 30 percent of the required procedures at OEP
airports;
(B) not later than 36 months after the date of enactment of
this Act, 60 percent of the required procedures at OEP
airports; and
(C) before June 30, 2015, 100 percent of the required
procedures at OEP airports.
(b) Non-OEP Airports.--
(1) Non-OEP airports report.--Not later than 6 months after
the date of enactment of this Act, the Administrator of the
Federal Aviation Administration shall publish a report, after
consultation with representatives of appropriate
Administration employee groups, airport operators, air
carriers, general aviation representatives, aircraft and
avionics manufacturers, and third parties that have received
letters of qualification from the Administration to design
and validate required navigation performance flight paths for
public use (in this section referred to as ``qualified third
parties'') that includes the following:
(A) Rnp operations for non-oep airports.--A list of
required navigation performance procedures (as defined in FAA
order 8260.52(d)) to be developed, certified, and published,
and the air traffic control operational changes, to maximize
the fuel efficiency and airspace capacity of NextGen
commercial operations at 35 non-OEP small, medium, and large
hub airports other than those referred to in subsection
(a)(1). The Administrator shall choose such non-OEP airports
considered appropriate by the Administrator to produce
maximum operational benefits, including improved fuel
efficiency and emissions reductions that do not have public
RNP procedures that produce such benefits on the date of
enactment of this Act. The Administrator shall, to the
maximum extent practicable, avoid overlays of existing flight
procedures, but if unavoidable, the Administrator shall
clearly identify each required navigation performance
procedure that is an overlay of an existing instrument flight
procedure and the reason why such an overlay was used.
(B) Coordination and implementation activities for non-oep
airports.--A description of the activities and operational
changes and approvals required to coordinate and to utilize
the procedures required by subparagraph (A) at each of the
airports described in such subparagraph.
(C) Implementation plan for non-oep airports.--A plan for
implementation of the procedures required by subparagraph (A)
that establishes--
(i) clearly defined budget, schedule, project organization,
and leadership requirements;
(ii) specific implementation and transition steps;
(iii) coordination and communications mechanisms with
qualified third parties;
(iv) plans to address human factors, training, and other
issues for air traffic controllers surrounding the adoption
of RNP procedures in the en route and terminal environments,
including in a mixed operational environment;
(v) baseline and performance metrics for--

(vi) expedited environmental review procedures and
processes for timely environmental approval of area
navigation and required navigation performance that offer
significant efficiency improvements as determined by baseline
and performance metrics established under clause (v);
(vii) a description of the software and database
information, such as a current version of the Noise
Integrated Routing System or the Integrated Noise Model that
the Administration will need to make available to qualified
third parties to enable those third parties to design
procedures that will meet the broad range of requirements of
the Administration; and
(viii) lifecycle management strategy for RNP procedures to
be developed by qualified third parties, if applicable.
(D) Additional procedures for non-oep airports.--A process
for the identification, certification, and publication of
additional required navigation performance procedures that
may provide operational benefits at non-OEP airports in the
future.
(2) Implementation schedule for non-oep airports.--The
Administrator shall certify, publish, and implement--
(A) not later than 18 months after the date of enactment of
this Act, 25 percent of the required procedures for non-OEP
airports;

[[Page H241]]

(B) not later than 36 months after the date of enactment of
this Act, 50 percent of the required procedures for non-OEP
airports; and
(C) before June 30, 2016, 100 percent of the required
procedures for non-OEP airports.
(c) Coordinated and Expedited Review.--
(1) In general.--Navigation performance and area navigation
procedures developed, certified, published, or implemented
under this section shall be presumed to be covered by a
categorical exclusion (as defined in section 1508.4 of title
40, Code of Federal Regulations) under chapter 3 of FAA Order
1050.1E unless the Administrator determines that
extraordinary circumstances exist with respect to the
procedure.
(2) Nextgen procedures.--Any navigation performance or
other performance based navigation procedure developed,
certified, published, or implemented that, in the
determination of the Administrator, would result in
measurable reductions in fuel consumption, carbon dioxide
emissions, and noise, on a per flight basis, as compared to
aircraft operations that follow existing instrument flight
rules procedures in the same airspace, shall be presumed to
have no significant affect on the quality of the human
environment and the Administrator shall issue and file a
categorical exclusion for the new procedure.
(d) Deployment Plan for Nationwide Data Communications
System.--Not later than 1 year after the date of enactment of
this Act, the Administrator shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives a plan for implementation of a nationwide
data communications system. The plan shall include--
(1) clearly defined budget, schedule, project organization,
and leadership requirements;
(2) specific implementation and transition steps; and
(3) baseline and performance metrics for measuring the
Administration's progress in implementing the plan.
(e) Improved Performance Standards.--
(1) Assessment of work being performed under nextgen
implementation plan.--The Administrator shall clearly outline
in the NextGen Implementation Plan document of the
Administration the work being performed under the plan to
determine--
(A) whether utilization of ADS-B, RNP, and other
technologies as part of NextGen implementation will display
the position of aircraft more accurately and frequently to
enable a more efficient use of existing airspace and result
in reduced consumption of aviation fuel and aircraft engine
emissions; and
(B) the feasibility of reducing aircraft separation
standards in a safe manner as a result of the implementation
of such technologies.
(2) Aircraft separation standards.--If the Administrator
determines that the standards referred to in paragraph (1)(B)
can be reduced safely, the Administrator shall include in the
NextGen Implementation Plan a timetable for implementation of
such reduced standards.
(f) Third-Party Usage.--The Administration shall establish
a program under which the Administrator is authorized to use
qualified third parties in the development, testing, and
maintenance of flight procedures.

SEC. 214. PERFORMANCE METRICS.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall establish and begin tracking
national airspace system performance metrics, including, at a
minimum, metrics with respect to--
(1) actual arrival and departure rates per hour measured
against the currently published aircraft arrival rate and
aircraft departure rate for the 35 operational evolution
partnership airports;
(2) average gate-to-gate times;
(3) fuel burned between key city pairs;
(4) operations using the advanced navigation procedures,
including performance based navigation procedures;
(5) the average distance flown between key city pairs;
(6) the time between pushing back from the gate and taking
off;
(7) continuous climb or descent;
(8) average gate arrival delay for all arrivals;
(9) flown versus filed flight times for key city pairs;
(10) implementation of NextGen Implementation Plan, or any
successor document, capabilities designed to reduce emissions
and fuel consumption;
(11) the Administration's unit cost of providing air
traffic control services; and
(12) runway safety, including runway incursions,
operational errors, and loss of standard separation events.
(b) Baselines.--The Administrator, in consultation with
aviation industry stakeholders, shall identify baselines for
each of the metrics established under subsection (a) and
appropriate methods to measure deviations from the baselines.
(c) Publication.--The Administrator shall make data
obtained under subsection (a) available to the public in a
searchable, sortable, and downloadable format through the Web
site of the Administration and other appropriate media.
(d) Report.--Not later than 180 days after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives a report that contains--
(1) a description of the metrics that will be used to
measure the Administration's progress in implementing NextGen
capabilities and operational results;
(2) information on any additional metrics developed; and
(3) a process for holding the Administration accountable
for meeting or exceeding the metrics baselines identified in
subsection (b).

SEC. 215. CERTIFICATION STANDARDS AND RESOURCES.

(a) Process for Certification.--Not later than 180 days
after the date of enactment of this Act, the Administrator of
the Federal Aviation Administration shall develop a plan to
accelerate and streamline the process for certification of
NextGen technologies, including--
(1) establishment of updated project plans and timelines;
(2) identification of the specific activities needed to
certify NextGen technologies, including the establishment of
NextGen technical requirements for the manufacture of
equipage, installation of equipage, airline operational
procedures, pilot training standards, air traffic control
procedures, and air traffic controller training;
(3) identification of staffing requirements for the Air
Certification Service and the Flight Standards Service,
taking into consideration the leveraging of assistance from
third parties and designees;
(4) establishment of a program under which the
Administration will use third parties in the certification
process; and
(5) establishment of performance metrics to measure the
Administration's progress.
(b) Certification Integrity.--The Administrator shall
ensure that equipment, systems, or services used in the
national airspace system meet appropriate certification
requirements regardless of whether the equipment, system, or
service is publically or privately owned.

SEC. 216. SURFACE SYSTEMS ACCELERATION.

(a) In General.--The Chief Operating Officer of the Air
Traffic Organization shall--
(1) evaluate the Airport Surface Detection Equipment-Model
X program for its potential contribution to implementation of
the NextGen initiative;
(2) evaluate airport surveillance technologies and
associated collaborative surface management software for
potential contributions to implementation of NextGen surface
management;
(3) accelerate implementation of the program referred to in
paragraph (1); and
(4) carry out such additional duties as the Administrator
of the Federal Aviation Administration may require.
(b) Expedited Certification and Utilization.--The
Administrator shall--
(1) consider options for expediting the certification of
Ground-Based Augmentation System technology; and
(2) develop a plan to utilize such a system at the 35
operational evolution partnership airports by December 31,
2012.

SEC. 217. INCLUSION OF STAKEHOLDERS IN AIR TRAFFIC CONTROL
MODERNIZATION PROJECTS.

(a) Process for Employee Inclusion.--Notwithstanding any
other law or agreement, the Administrator of the Federal
Aviation Administration shall establish a process or
processes for including qualified employees selected by each
exclusive collective bargaining representative of employees
of the Administration impacted by the air traffic control
modernization process to serve in a collaborative and expert
capacity in the planning and development of air traffic
control modernization projects, including NextGen.
(b) Adherence to Deadlines.--Participants in these
processes shall adhere, to the greatest extent possible, to
all deadlines and milestones established pursuant to this
title.
(c) No Change in Employee Status.--Participation in these
processes by an employee shall not--
(1) serve as a waiver of any bargaining obligations or
rights;
(2) entitle the employee to any additional compensation or
benefits with the exception of a per diem, if appropriate; or
(3) entitle the employee to prevent or unduly delay the
exercise of management prerogatives.
(d) Working Groups.--Except in extraordinary circumstances,
the Administrator shall not pay overtime related to work
group participation.
(e) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall report to the
Committee on Transportation and Infrastructure of the House
of Representatives and the Committee on Commerce, Science,
and Transportation of the Senate on the implementation of
this section.

SEC. 218. AIRSPACE REDESIGN.

(a) Findings.--Congress finds the following:
(1) The airspace redesign efforts of the Federal Aviation
Administration will play a critical near-term role in
enhancing capacity, reducing delays, transitioning to more
flexible routing, and ultimately saving money in fuel costs
for airlines and airspace users.
(2) The critical importance of airspace redesign efforts is
underscored by the fact that they are highlighted in
strategic plans of the Administration, including Flight Plan
2009-2013 and the NextGen Implementation Plan.
(3) Funding cuts have led to delays and deferrals of
critical capacity enhancing airspace redesign efforts.
(4) New runways planned for the period of fiscal years 2011
and 2012 will not provide estimated capacity benefits without
additional funds.
(b) Noise Impacts of New York/New Jersey/Philadelphia
Metropolitan Area Airspace Redesign.--
(1) Monitoring.--The Administrator of the Federal Aviation
Administration, in conjunction with the Port Authority of New
York and New Jersey and the Philadelphia International
Airport, shall monitor the noise impacts of the New York/New
Jersey/Philadelphia Metropolitan Area Airspace Redesign.

[[Page H242]]

(2) Report.--Not later than 1 year following the first day
of completion of the New York/New Jersey/Philadelphia
Metropolitan Area Airspace Redesign, the Administrator shall
submit to Congress a report on the findings of the
Administrator with respect to monitoring conducted under
paragraph (1).

SEC. 219. STUDY ON FEASIBILITY OF DEVELOPMENT OF A PUBLIC
INTERNET WEB-BASED RESOURCE ON LOCATIONS OF
POTENTIAL AVIATION OBSTRUCTIONS.

(a) Study.--The Administrator of the Federal Aviation
Administration shall carry out a study on the feasibility of
developing a publicly searchable, Internet Web-based resource
that provides information regarding the height and
latitudinal and longitudinal locations of guy-wire and free-
standing tower obstructions.
(b) Considerations.--In conducting the study, the
Administrator shall consult with affected industries and
appropriate Federal agencies.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit a
report to the appropriate committees of Congress on the
results of the study.

SEC. 220. NEXTGEN RESEARCH AND DEVELOPMENT CENTER OF
EXCELLENCE.

(a) In General.--The Administrator of the Federal Aviation
Administration may enter into an agreement, on a competitive
basis, to assist in the establishment of a center of
excellence for the research and development of NextGen
technologies.
(b) Functions.--The Administrator shall ensure that the
center established under subsection (a)--
(1) leverages resources and partnerships, including
appropriate programs of the Administration, to enhance the
research and development of NextGen technologies by academia
and industry; and
(2) provides educational, technical, and analytical
assistance to the Administration and other Federal
departments and agencies with responsibilities to research
and develop NextGen technologies.

SEC. 221. PUBLIC-PRIVATE PARTNERSHIPS.

(a) In General.--The Secretary may establish an avionics
equipage incentive program for the purpose of equipping
general aviation and commercial aircraft with communications,
surveillance, navigation, and other avionics equipment as
determined by the Secretary to be in the interest of
achieving NextGen capabilities for such aircraft.
(b) NextGen Public-private Partnerships.--The incentive
program established under subsection (a) shall, at a
minimum--
(1) be based on public-private partnership principles; and
(2) leverage and maximize the use of private sector
capital.
(c) Financial Instruments.--Subject to the availability of
appropriated funds, the Secretary may use financial
instruments to facilitate public-private financing for the
equipage of general aviation and commercial aircraft
registered under section 44103 of title 49, United States
Code. To the extent appropriations are not made available,
the Secretary may establish the program, provided the costs
are covered by the fees and premiums authorized by subsection
(d)(2). For purposes of this section, the term ``financial
instruments'' means loan guarantees and other credit
assistance designed to leverage and maximize private sector
capital.
(d) Protection of the Taxpayer.--
(1) Limitation on principal.--The amount of any guarantee
under this program shall be limited to 90 percent of the
principal amount of the underlying loan.
(2) Collateral, fees, and premiums.--The Secretary shall
require applicants for the incentive program to post
collateral and pay such fees and premiums if feasible, as
determined by the Secretary, to offset costs to the
Government of potential defaults, and agree to performance
measures that the Secretary considers necessary and in the
best interest of implementing the NextGen program.
(3) Use of funds.--Applications for this program shall be
limited to equipment that is installed on general aviation or
commercial aircraft and is necessary for communications,
surveillance, navigation, or other purposes determined by the
Secretary to be in the interests of achieving NextGen
capabilities for commercial and general aviation.
(e) Termination of Authority.--The authority of the
Secretary to issue such financial instruments under this
section shall terminate 5 years after the date of the
establishment of the incentive program.

SEC. 222. OPERATIONAL INCENTIVES.

(a) In General.--The Administrator of the Federal Aviation
Administration shall issue a report that--
(1) identifies incentive options to encourage the equipage
of aircraft with NextGen technologies, including a policy
that gives priority to aircraft equipped with ADS-B
technology;
(2) identifies the costs and benefits of each option; and
(3) includes input from industry stakeholders, including
passenger and cargo air carriers, aerospace manufacturers,
and general aviation aircraft operators.
(b) Deadline.--The Administrator shall issue the report
before the earlier of--
(1) the date that is 6 months after the date of enactment
of this Act; or
(2) the date on which aircraft are required to be equipped
with ADS-B technology pursuant to the rulemaking under
section 211(b).

SEC. 223. 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 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. 224. AIR TRAFFIC CONTROLLER STAFFING INITIATIVES AND
ANALYSIS.

As soon as practicable, and not later than 1 year after the
date of enactment of this Act, the Administrator of the
Federal Aviation Administration shall--
(1) ensure, to the extent practicable, a sufficient number
of contract instructors, classroom space (including off-site
locations as needed), and simulators to allow for an increase
in the number of air traffic controllers at air traffic
control facilities;
(2) distribute, to the extent practicable, the placement of
certified professional air traffic controllers-in-training
and developmental air traffic controllers at facilities
evenly across the calendar year in order to avoid training
bottlenecks;
(3) initiate an analysis, to be conducted in consultation
with the exclusive bargaining representative of air traffic
controllers certified under section 7111 of title 5, United
States Code, of scheduling processes and practices, including
overtime scheduling practices at those facilities;
(4) provide, to the extent practicable and where
appropriate, priority to certified professional air traffic
controllers-in-training when filling staffing vacancies at
facilities;
(5) assess training programs at air traffic control
facilities with below-average success rates to determine if
training is being carried out in accordance with
Administration standards, and conduct exit interview analyses
with all candidates to determine potential weaknesses in
training protocols, or in the execution of such training
protocols; and
(6) prioritize, to the extent practicable, such efforts to
address the recommendations for the facilities identified in
the Department of Transportation's Office of the Inspector
General Report Number: AV-2009-047.

SEC. 225. REPORTS ON STATUS OF GREENER SKIES PROJECT.

(a) Initial Report.--Not later than 180 days after the date
of the enactment of this Act, the Administrator of the
Federal Aviation Administration shall submit to Congress a
report on the strategy of the Administrator for implementing,
on an accelerated basis, the NextGen operational capabilities
produced by the Greener Skies project, as recommended in the
final report of the RTCA NextGen Mid-Term Implementation Task
Force that was issued on September 9, 2009.
(b) Subsequent Reports.--
(1) In general.--Not later than 180 days after the
Administrator submits to Congress the report required by
subsection (a) and annually thereafter until the pilot
program terminates, the Administrator shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and to the Committee on Transportation and
Infrastructure of the House of Representatives a report on
the progress of the Administrator in carrying out the
strategy described in the report submitted under subsection
(a).
(2) Contents.--Each report submitted under paragraph (1)
shall include the following:
(A) A timeline for full implementation of the strategy
described in the report submitted under subsection (a).
(B) A description of the progress made in carrying out such
strategy.
(C) A description of the challenges, if any, encountered by
the Administrator in carrying out such strategy.

TITLE III--SAFETY

Subtitle A--General Provisions

SEC. 301. 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) A person who is substantially affected by an order of
the Board under this subsection, or the Administrator if the
Administrator decides that an order of the Board will have a
significant adverse impact on carrying out this subtitle, may
seek judicial review of the order under section 46110. 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. 302. 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) In general.--Notwithstanding any other provision of
law, the Administrator may make available upon request, to a
person seeking to maintain the airworthiness or develop
product improvements of an aircraft, engine, propeller, or
appliance, engineering data in the possession of the
Administration relating to a type certificate or a
supplemental type certificate for such aircraft, engine,
propeller, or appliance, without the consent of the owner of
record, if the Administrator determines that--
``(i) the certificate containing the requested data has
been inactive for 3 or more years, except that the
Administrator may reduce this time if required to address an
unsafe condition associated with the product;
``(ii) after using due diligence, the Administrator is
unable to find the owner of record, or the owner of record's
heir, of the type certificate or supplemental type
certificate; and
``(iii) making such data available will enhance aviation
safety.
``(B) Engineering data defined.--In this section, the term
`engineering data' as used with

[[Page H243]]

respect to an aircraft, engine, propeller, or appliance means
type design drawing and specifications for the entire
aircraft, engine, propeller, or appliance or change to the
aircraft, engine, propeller, or appliance, including the
original design data, and any associated supplier data for
individual parts or components approved as part of the
particular certificate for the aircraft, engine, propeller,
or appliance.
``(C) Requirement to maintain data.--The Administrator
shall maintain engineering data in the possession of the
Administration relating to a type certificate or a
supplemental type certificate that has been inactive for 3 or
more years.''.

SEC. 303. DESIGN AND PRODUCTION ORGANIZATION CERTIFICATES.

(a) In General.--Section 44704(e) is amended to read as
follows:
``(e) Design and Production Organization Certificates.--
``(1) Issuance.--Beginning January 1, 2013, the
Administrator may issue a certificate to a design
organization, production organization, or design and
production organization to authorize the organization to
certify compliance of aircraft, aircraft engines, propellers,
and appliances with the requirements and minimum standards
prescribed under section 44701(a). An organization holding a
certificate issued under this subsection shall be known as a
certified design and production organization (in this
subsection referred to as a `CDPO').
``(2) Applications.--On receiving an application for a CDPO
certificate, the Administrator shall examine and rate the
organization submitting the application, in accordance with
regulations to be prescribed by the Administrator, to
determine whether the organization has adequate engineering,
design, and production capabilities, standards, and
safeguards to make certifications of compliance as described
in paragraph (1).
``(3) Issuance of certificates based on cdpo findings.--The
Administrator may rely on certifications of compliance by a
CDPO when making determinations under this section.
``(4) Public safety.--The Administrator shall include in a
CDPO certificate terms required in the interest of safety.
``(5) No effect on power of revocation.--Nothing in this
subsection affects the authority of the Secretary of
Transportation to revoke a certificate.''.
(b) Applicability.--Before January 1, 2013, the
Administrator of the Federal Aviation Administration may
continue to issue certificates under section 44704(e) of
title 49, United States Code, as in effect on the day before
the date of enactment of this Act.
(c) Clerical Amendments.--Chapter 447 is amended--
(1) in the heading for section 44704 by striking ``and
design organization certificates'' and inserting ``, and
design and production organization certificates''; and
(2) in the analysis for such chapter by striking the item
relating to section 44704 and inserting the following:

``44704. Type certificates, production certificates, airworthiness
certificates, and design and production organization
certificates.''.

SEC. 304. 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 person may serve as a flight
attendant aboard an aircraft of an air carrier, unless that
person has demonstrated to an individual qualified to
determine proficiency 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 a flight attendant serving solely between
points outside the United States.''.
(b) Facilitation.--The Administrator of the Federal
Aviation Administration shall work with air carriers to
facilitate compliance with the requirements of section
44728(f) of title 49, United States Code (as amended by this
section).

SEC. 305. LINE CHECK EVALUATIONS.

Section 44729(h) is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).

SEC. 306. SAFETY OF AIR AMBULANCE OPERATIONS.

(a) In General.--Chapter 447 is amended by adding at the
end the following:

``Sec. 44730. Helicopter air ambulance operations

``(a) Compliance Regulations.--
``(1) In general.--Except as provided in paragraph (2), not
later than 180 days after the date of enactment of this
section, a part 135 certificate holder providing air
ambulance services shall comply, whenever medical personnel
are onboard the aircraft, with regulations pertaining to
weather minimums and flight and duty time under part 135.
``(2) Exception.--If a certificate holder described in
paragraph (1) is operating, or carrying out training, under
instrument flight rules, the weather reporting requirement at
the destination shall not apply if authorized by the
Administrator of the Federal Aviation Administration.
``(b) Final Rule.--Not later than June 1, 2012, the
Administrator shall issue a final rule, with respect to the
notice of proposed rulemaking published in the Federal
Register on October 12, 2010 (75 Fed. Reg. 62640), to improve
the safety of flight crewmembers, medical personnel, and
passengers onboard helicopters providing air ambulance
services under part 135.
``(c) Matters To Be Addressed.--In conducting the
rulemaking proceeding under subsection (b), the Administrator
shall address the following:
``(1) Flight request and dispatch procedures, including
performance-based flight dispatch procedures.
``(2) Pilot training standards, including establishment of
training standards in--
``(A) preventing controlled flight into terrain; and
``(B) recovery from inadvertent flight into instrument
meteorological conditions.
``(3) Safety-enhancing technology and equipment,
including--
``(A) helicopter terrain awareness and warning systems;
``(B) radar altimeters; and
``(C) devices that perform the function of flight data
recorders and cockpit voice recorders, to the extent
feasible.
``(4) Such other matters as the Administrator considers
appropriate.
``(d) Minimum Requirements.--In issuing a final rule under
subsection (b), the Administrator, at a minimum, shall
provide for the following:
``(1) Flight risk evaluation program.--The Administrator
shall ensure that a part 135 certificate holder providing
helicopter air ambulance services--
``(A) establishes a flight risk evaluation program, based
on FAA Notice 8000.301 issued by the Administration on August
1, 2005, including any updates thereto;
``(B) as part of the flight risk evaluation program,
develops a checklist for use by pilots in determining whether
a flight request should be accepted; and
``(C) requires the pilots of the certificate holder to use
the checklist.
``(2) Operational control center.--The Administrator shall
ensure that a part 135 certificate holder providing
helicopter air ambulance services using 10 or more
helicopters has an operational control center that meets such
requirements as the Administrator may prescribe.
``(e) Subsequent Rulemaking.--
``(1) In general.--Upon completion of the rulemaking
required under subsection (b), the Administrator shall
conduct a follow-on rulemaking to address the following:
``(A) Pilot training standards, including--
``(i) mandatory training requirements, including a minimum
time for completing the training requirements;
``(ii) training subject areas, such as communications
procedures and appropriate technology use; and
``(iii) establishment of training standards in--

``(I) crew resource management;
``(II) flight risk evaluation;
``(III) operational control of the pilot in command; and
``(IV) use of flight simulation training devices and line-
oriented flight training.

``(B) Use of safety equipment that should be worn or used
by flight crewmembers and medical personnel on a flight,
including the possible use of shoulder harnesses, helmets,
seatbelts, and fire resistant clothing to enhance crash
survivability.
``(2) Deadlines.--Not later than 180 days after the date of
issuance of a final rule under subsection (b), the
Administrator shall initiate the rulemaking under this
subsection.
``(3) Limitation on construction.--Nothing in this
subsection shall be construed to require the Administrator to
propose or finalize any rule that would derogate or supersede
the rule required to be finalized under subsection (b).
``(f) Definitions.--In this section, the following
definitions apply:
``(1) Part 135.--The term `part 135' means part 135 of
title 14, Code of Federal Regulations.
``(2) Part 135 certificate holder.--The term `part 135
certificate holder' means a person holding an operating
certificate issued under part 119 of title 14, Code of
Federal Regulations, that is authorized to conduct civil
helicopter air ambulance operations under part 135.

``Sec. 44731. Collection of data on helicopter air ambulance
operations

``(a) In General.--The Administrator of the Federal
Aviation Administration shall require a part 135 certificate
holder providing helicopter air ambulance services to submit
to the Administrator, not later than 1 year after the date of
enactment of this section, and annually thereafter, a report
containing, at a minimum, the following data:
``(1) The number of helicopters that the certificate holder
uses to provide helicopter air ambulance services and the
base locations of the helicopters.
``(2) The number of flights and hours flown, by
registration number, during which helicopters operated by the
certificate holder were providing helicopter air ambulance
services.
``(3) The number of flight requests for a helicopter
providing air ambulance services that were accepted or
declined by the certificate holder and the type of each such
flight request (such as scene response, interfacility
transport, organ transport, or ferry or repositioning
flight).
``(4) The number of accidents, if any, involving
helicopters operated by the certificate holder while
providing air ambulance services and a description of the
accidents.
``(5) The number of flights and hours flown under
instrument flight rules by helicopters operated by the
certificate holder while providing air ambulance services.

[[Page H244]]

``(6) The time of day of each flight flown by helicopters
operated by the certificate holder while providing air
ambulance services.
``(7) The number of incidents, if any, in which a
helicopter was not directly dispatched and arrived to
transport patients but was not utilized for patient
transport.
``(b) Reporting Period.--Data contained in a report
submitted by a part 135 certificate holder under subsection
(a) shall relate to such reporting period as the
Administrator determines appropriate.
``(c) Database.--Not later than 180 days after the date of
enactment of this section, the Administrator shall develop a
method to collect and store the data collected under
subsection (a), including a method to protect the
confidentiality of any trade secret or proprietary
information provided in response to this section.
``(d) Report to Congress.--Not later than 2 years after the
date of enactment of this section, and annually thereafter,
the Administrator shall submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report containing a summary of
the data collected under subsection (a).
``(e) Definitions.--In this section, the terms `part 135'
and `part 135 certificate holder' have the meanings given
such terms in section 44730.''.
(b) Authorized Expenditures.--Section 106(k)(2)(C) (as
redesignated by this Act) is amended by inserting before the
period the following: ``and the development and maintenance
of helicopter approach procedures''.
(c) Clerical Amendment.--The analysis for chapter 447 is
amended by adding at the end the following:

``44730. Helicopter air ambulance operations.
``44731. Collection of data on helicopter air ambulance operations.''.

SEC. 307. PROHIBITION ON PERSONAL USE OF ELECTRONIC DEVICES
ON FLIGHT DECK.

(a) In General.--Chapter 447 (as amended by this Act) is
further amended by adding at the end the following:

``Sec. 44732. Prohibition on personal use of electronic
devices on flight deck

``(a) In General.--It is unlawful for a flight crewmember
of an aircraft used to provide air transportation under part
121 of title 14, Code of Federal Regulations, to use a
personal wireless communications device or laptop computer
while at the flight crewmember's duty station on the flight
deck of such an aircraft while the aircraft is being
operated.
``(b) Exceptions.--Subsection (a) shall not apply to the
use of a personal wireless communications device or laptop
computer for a purpose directly related to operation of the
aircraft, or for emergency, safety-related, or employment-
related communications, in accordance with procedures
established by the air carrier and the Administrator of the
Federal Aviation Administration.
``(c) Enforcement.--In addition to the penalties provided
under section 46301 applicable to any violation of this
section, the Administrator of the Federal Aviation
Administration may enforce compliance with this section under
section 44709 by amending, modifying, suspending, or revoking
a certificate under this chapter.
``(d) Personal Wireless Communications Device Defined.--In
this section, the term `personal wireless communications
device' means a device through which personal wireless
services (as defined in section 332(c)(7)(C)(i) of the
Communications Act of 1934 (47 U.S.C. 332(c)(7)(C)(i))) are
transmitted.''.
(b) Penalty.--Section 44711(a) is amended--
(1) by striking ``or'' after the semicolon in paragraph
(8);
(2) by striking ``title.'' in paragraph (9) and inserting
``title; or''; and
(3) by adding at the end the following:
``(10) violate section 44732 or any regulation issued
thereunder.''.
(c) Conforming Amendment.--The analysis for chapter 447 (as
amended by this Act) is further amended by adding at the end
the following:

``44732. Prohibition on personal use of electronic devices on flight
deck.''.
(d) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall initiate a rulemaking procedure
for regulations to carry out section 44732 of title 49,
United States Code (as added by this section), and shall
issue a final rule thereunder not later than 2 years after
the date of enactment of this Act.
(e) Study.--
(1) In general.--The Administrator of the Federal Aviation
Administration shall review relevant air carrier data and
carry out a study--
(A) to identify common sources of distraction for the
flight crewmembers on the flight deck of a commercial
aircraft; and
(B) to determine the safety impacts of such distractions.
(2) Report to congress.--Not later than 1 year after the
date of enactment of this Act, the Administrator shall submit
to the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report that
contains--
(A) the findings of the study conducted under paragraph
(1); and
(B) recommendations regarding how to reduce distractions
for flight crewmembers on the flight deck of a commercial
aircraft.

SEC. 308. INSPECTION OF REPAIR STATIONS LOCATED OUTSIDE THE
UNITED STATES.

(a) In General.--Chapter 447 (as amended by this Act) is
further amended by adding at the end the following:

``Sec. 44733. Inspection of repair stations located outside
the United States

``(a) In General.--Not later than 1 year after the date of
enactment of this section, the Administrator of the Federal
Aviation Administration shall establish and implement a
safety assessment system for all part 145 repair stations
based on the type, scope, and complexity of work being
performed. The system shall--
``(1) ensure that repair stations located outside the
United States are subject to appropriate inspections based on
identified risks and consistent with existing United States
requirements;
``(2) consider inspection results and findings submitted by
foreign civil aviation authorities operating under a
maintenance safety or maintenance implementation agreement
with the United States; and
``(3) require all maintenance safety or maintenance
implementation agreements to provide an opportunity for the
Administration to conduct independent inspections of covered
part 145 repair stations when safety concerns warrant such
inspections.
``(b) Notice to Congress of Negotiations.--The
Administrator shall notify the Committee on Commerce,
Science, and Transportation of the Senate and the Committee
on Transportation and Infrastructure of the House of
Representatives not later than 30 days after initiating
formal negotiations with foreign aviation authorities or
other appropriate foreign government agencies on a new
maintenance safety or maintenance implementation agreement.
``(c) Annual Report.--The Administrator shall publish an
annual report on the Administration's oversight of part 145
repair stations and implementation of the safety assessment
system required under subsection (a). The report shall--
``(1) describe in detail any improvements in the
Administration's ability to identify and track where part 121
air carrier repair work is performed;
``(2) include a staffing model to determine the best
placement of inspectors and the number of inspectors needed;
``(3) describe the training provided to inspectors; and
``(4) include an assessment of the quality of monitoring
and surveillance by the Administration of work performed by
its inspectors and the inspectors of foreign authorities
operating under a maintenance safety or maintenance
implementation agreement.
``(d) Alcohol and Controlled Substances Testing Program
Requirements.--
``(1) In general.--The Secretary of State and the Secretary
of Transportation, acting jointly, shall request the
governments of foreign countries that are members of the
International Civil Aviation Organization to establish
international standards for alcohol and controlled substances
testing of persons that perform safety-sensitive maintenance
functions on commercial air carrier aircraft.
``(2) Application to part 121 aircraft work.--Not later
than 1 year after the date of enactment of this section, the
Administrator shall promulgate a proposed rule requiring that
all part 145 repair station employees responsible for safety-
sensitive maintenance functions on part 121 air carrier
aircraft are subject to an alcohol and controlled substances
testing program determined acceptable by the Administrator
and consistent with the applicable laws of the country in
which the repair station is located.
``(e) Annual Inspections.--The Administrator shall ensure
that part 145 repair stations located outside the United
States are inspected annually by Federal Aviation
Administration safety inspectors, without regard to where the
station is located, in a manner consistent with United States
obligations under international agreements. The Administrator
may carry out inspections in addition to the annual
inspection required under this subsection based on identified
risks.
``(f) Definitions.--In this section, the following
definitions apply:
``(1) Part 121 air carrier.--The term `part 121 air
carrier' means an air carrier that holds a certificate issued
under part 121 of title 14, Code of Federal Regulations.
``(2) Part 145 repair station.--The term `part 145 repair
station' means a repair station that holds a certificate
issued under part 145 of title 14, Code of Federal
Regulations.''.
(b) Conforming Amendment.--The analysis for chapter 447 (as
amended by this Act) is further amended by adding at the end
the following:

``44733. Inspection of repair stations located outside the United
States.''.

SEC. 309. ENHANCED TRAINING FOR FLIGHT ATTENDANTS.

(a) In General.--Chapter 447 (as amended by this Act) is
further amended by adding at the end the following:

``Sec. 44734. Training of flight attendants

``(a) Training Required.--In addition to other training
required under this chapter, each air carrier shall provide
to flight attendants employed or contracted by such air
carrier initial and annual training regarding--
``(1) serving alcohol to passengers;
``(2) recognizing intoxicated passengers; and
``(3) dealing with disruptive passengers.
``(b) Situational Training.--In carrying out the training
required under subsection (a), each air carrier shall provide
to flight attendants situational training on the proper
method for dealing with intoxicated passengers who act in a
belligerent manner.
``(c) Definitions.--In this section, the following
definitions apply:
``(1) Air carrier.--The term `air carrier' means a person,
including a commercial enterprise, that has been issued an
air carrier operating certificate under section 44705.

[[Page H245]]

``(2) Flight attendant.--The term `flight attendant' has
the meaning given that term in section 44728(g).''.
(b) Clerical Amendment.--The analysis for chapter 447 (as
amended by this Act) is further amended by adding at the end
the following:

``44734. Training of flight attendants.''.

SEC. 310. LIMITATION ON DISCLOSURE OF SAFETY INFORMATION.

(a) In General.--Chapter 447 (as amended by this Act) is
further amended by adding at the end the following:

``Sec. 44735. Limitation on disclosure of safety information

``(a) In General.--Except as provided by subsection (c), a
report, data, or other information described in subsection
(b) shall not be disclosed to the public by the Administrator
of the Federal Aviation Administration pursuant to section
552(b)(3)(B) of title 5 if the report, data, or other
information is submitted to the Federal Aviation
Administration voluntarily and is not required to be
submitted to the Administrator under any other provision of
law.
``(b) Applicability.--The limitation established by
subsection (a) shall apply to the following:
``(1) Reports, data, or other information developed under
the Aviation Safety Action Program.
``(2) Reports, data, or other information produced or
collected under the Flight Operational Quality Assurance
Program.
``(3) Reports, data, or other information developed under
the Line Operations Safety Audit Program.
``(4) Reports, data, or other information produced or
collected for purposes of developing and implementing a
safety management system acceptable to the Administrator.
``(5) Reports, analyses, and directed studies, based in
whole or in part on reports, data, or other information
described in paragraphs (1) through (4), including those
prepared under the Aviation Safety Information Analysis and
Sharing Program (or any successor program).
``(c) Exception for De-identified Information.--
``(1) In general.--The limitation established by subsection
(a) shall not apply to a report, data, or other information
if the information contained in the report, data, or other
information has been de-identified.
``(2) De-identified defined.--In this subsection, the term
`de-identified' means the process by which all information
that is likely to establish the identity of the specific
persons or entities submitting reports, data, or other
information is removed from the reports, data, or other
information.''.
(b) Clerical Amendment.--The analysis for such chapter (as
amended by this Act) is further amended by adding at the end
the following:

``44735. Limitation on disclosure of safety information.''.
(c) Technical Correction.--Section 44703(i)(9)(B)(i) is
amended by striking ``section 552 of title 5'' and inserting
``section 552(b)(3)(B) of title 5''.

SEC. 311. PROHIBITION AGAINST AIMING A LASER POINTER AT AN
AIRCRAFT.

(a) Offense.--Chapter 2 of title 18, United States Code, is
amended by inserting after section 39 the following:

``Sec. 39A. Aiming a laser pointer at an aircraft

``(a) Offense.--Whoever knowingly aims the beam of a laser
pointer at an aircraft in the special aircraft jurisdiction
of the United States, or at the flight path of such an
aircraft, shall be fined under this title or imprisoned not
more than 5 years, or both.
``(b) Laser Pointer Defined.--As used in this section, the
term `laser pointer' means any device designed or used to
amplify electromagnetic radiation by stimulated emission that
emits a beam designed to be used by the operator as a pointer
or highlighter to indicate, mark, or identify a specific
position, place, item, or object.
``(c) Exceptions.--This section does not prohibit aiming a
beam of a laser pointer at an aircraft, or the flight path of
such an aircraft, by--
``(1) an authorized individual in the conduct of research
and development or flight test operations conducted by an
aircraft manufacturer, the Federal Aviation Administration,
or any other person authorized by the Federal Aviation
Administration to conduct such research and development or
flight test operations;
``(2) members or elements of the Department of Defense or
Department of Homeland Security acting in an official
capacity for the purpose of research, development,
operations, testing, or training; or
``(3) by an individual using a laser emergency signaling
device to send an emergency distress signal.
``(d) Authority To Establish Additional Exceptions by
Regulation.--The Attorney General, in consultation with the
Secretary of Transportation, may provide by regulation, after
public notice and comment, such additional exceptions to this
section as may be necessary and appropriate. The Attorney
General shall provide written notification of any proposed
regulations under this section to the Committees on the
Judiciary of the Senate and the House of Representatives, the
Committee on Commerce, Science, and Transportation of the
Senate, and the Committee on Transportation and
Infrastructure of the House of Representatives, not less than
90 days before such regulations become final.''.
(b) Clerical Amendment.--The analysis for such chapter is
amended--
(1) by moving the item relating to section 39 after the
item relating to section 38; and
(2) by inserting after the item relating to section 39 the
following:

``39A. Aiming a laser pointer at an aircraft''.

SEC. 312. AIRCRAFT CERTIFICATION PROCESS REVIEW AND REFORM.

(a) In General.--The Administrator of the Federal Aviation
Administration, in consultation with representatives of the
aviation industry, shall conduct an assessment of the
certification and approval process under section 44704 of
title 49, United States Code.
(b) Contents.--In conducting the assessment, the
Administrator shall consider--
(1) the expected number of applications for product
certifications and approvals the Administrator will receive
under section 44704 of such title in the 1-year, 5-year, and
10-year periods following the date of enactment of this Act;
(2) process reforms and improvements necessary to allow the
Administrator to review and approve the applications in a
fair and timely fashion;
(3) the status of recommendations made in previous reports
on the Administration's certification process;
(4) methods for enhancing the effective use of delegation
systems, including organizational designation authorization;
(5) methods for training the Administration's field office
employees in the safety management system and auditing; and
(6) the status of updating airworthiness requirements,
including implementing recommendations in the
Administration's report entitled ``Part 23--Small Airplane
Certification Process Study'' (OK-09-3468, dated July 2009).
(c) Recommendations.--In conducting the assessment, the
Administrator shall make recommendations to improve
efficiency and reduce costs through streamlining and
reengineering the certification process under section 44704
of such title to ensure that the Administrator can conduct
certifications and approvals under such section in a manner
that supports and enables the development of new products and
technologies and the global competitiveness of the United
States aviation industry.
(d) Report to Congress.--Not later than 180 days after the
date of enactment of this Act, the Administrator shall submit
to 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
results of the assessment, together with an explanation of
how the Administrator will implement recommendations made
under subsection (c) and measure the effectiveness of the
recommendations.
(e) Implementation of Recommendations.--Not later than 1
year after the date of enactment of this Act, the
Administrator shall begin to implement the recommendations
made under subsection (c).

SEC. 313. CONSISTENCY OF REGULATORY INTERPRETATION.

(a) Establishment of Advisory Panel.--Not later than 90
days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration shall
establish an advisory panel comprised of both Government and
industry representatives to--
(1) review the October 2010 report by the Government
Accountability Office on certification and approval processes
(GAO-11-14); and
(2) develop recommendations to address the findings in the
report and other concerns raised by interested parties,
including representatives of the aviation industry.
(b) Matters To Be Considered.--The advisory panel shall--
(1) determine the root causes of inconsistent
interpretation of regulations by the Administration's Flight
Standards Service and Aircraft Certification Service;
(2) develop recommendations to improve the consistency of
interpreting regulations by the Administration's Flight
Standards Service and Aircraft Certification Service; and
(3) develop recommendations to improve communications
between the Administration's Flight Standards Service and
Aircraft Certification Service and applicants and certificate
and approval holders for the identification and resolution of
potentially adverse issues in an expeditious and fair manner.
(c) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Administrator shall
transmit to 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 findings of the advisory panel,
together with an explanation of how the Administrator will
implement the recommendations of the advisory panel and
measure the effectiveness of the recommendations.

SEC. 314. RUNWAY SAFETY.

(a) Strategic Runway Safety Plan.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall develop and submit to Congress
a report containing a strategic runway safety plan.
(2) Contents of plan.--The strategic runway safety plan--
(A) shall include, at a minimum--
(i) goals to improve runway safety;
(ii) near- and long-term actions designed to reduce the
severity, number, and rate of runway incursions, losses of
standard separation, and operational errors;
(iii) time frames and resources needed for the actions
described in clause (ii);
(iv) a continuous evaluative process to track performance
toward the goals referred to in clause (i); and
(v) a review with respect to runway safety of every
commercial service airport (as defined in section 47102 of
title 49, United States Code) in the United States and
proposed action to improve airport lighting, provide better
signs, and improve runway and taxiway markings at those
airports; and
(B) shall address the increased runway safety risk
associated with the expected increased volume of air traffic.

[[Page H246]]

(b) Process.--Not later than 6 months after the date of
enactment of this Act, the Administrator shall develop a
process for tracking and investigating operational errors,
losses of standard separation, and runway incursions that
includes procedures for--
(1) identifying who is responsible for tracking operational
errors, losses of standard separation, and runway incursions,
including a process for lower level employees to report to
higher supervisory levels and for frontline managers to
receive the information in a timely manner;
(2) conducting periodic random audits of the oversight
process; and
(3) ensuring proper accountability.
(c) Plan for Installation and Deployment of Systems To
Provide Alerts of Potential Runway Incursions.--Not later
than June 30, 2012, the Administrator shall submit to
Congress a report containing a plan for the installation and
deployment of systems to alert air traffic controllers or
flight crewmembers, or both, of potential runway incursions.
The plan shall be integrated into the annual NextGen
Implementation Plan of the Administration or any successor
document.

SEC. 315. FLIGHT STANDARDS EVALUATION PROGRAM.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall modify the Flight Standards
Evaluation Program--
(1) to include periodic and random reviews as part of the
Administration's oversight of air carriers; and
(2) to prohibit an individual from participating in a
review or audit of an office with responsibility for an air
carrier under the program if the individual, at any time in
the 5-year period preceding the date of the review or audit,
had responsibility for inspecting, or overseeing the
inspection of, the operations of that carrier.
(b) Annual Report to Congress.--Not later than 1 year after
the date of enactment of this Act, and annually thereafter,
the Administrator shall submit to the Committee on Commerce,
Science, and Transportation of the Senate and the Committee
on Transportation and Infrastructure of the House of
Representatives a report on the Flight Standards Evaluation
Program, including the Administrator's findings and
recommendations with respect to the program.
(c) Flight Standards Evaluation Program Defined.--In this
section, the term ``Flight Standards Evaluation Program''
means the program established by the Federal Aviation
Administration in FS 1100.1B CHG3, including any subsequent
revisions thereto.

SEC. 316. COCKPIT SMOKE.

(a) Study.--The Comptroller General of the United States
shall conduct a study on the effectiveness of oversight
activities of the Federal Aviation Administration relating to
the use of new technologies to prevent or mitigate the
effects of dense, continuous smoke in the cockpit of a
commercial aircraft.
(b) Report to Congress.--Not later than 18 months after the
date of enactment of this Act, the Comptroller General shall
submit to Congress a report on the results of the study.

SEC. 317. OFF-AIRPORT, LOW-ALTITUDE AIRCRAFT WEATHER
OBSERVATION TECHNOLOGY.

(a) Study.--The Administrator of the Federal Aviation
Administration shall conduct a review of off-airport, low-
altitude aircraft weather observation technologies.
(b) Specific Review.--The review shall include, at a
minimum, an examination of off-airport, low-altitude weather
reporting needs, an assessment of technical alternatives
(including automated weather observation stations), an
investment analysis, and recommendations for improving
weather reporting.
(c) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Administrator shall submit
to Congress a report containing the results of the review.

SEC. 318. FEASIBILITY OF REQUIRING HELICOPTER PILOTS TO USE
NIGHT VISION GOGGLES.

(a) Study.--The Administrator of the Federal Aviation
Administration shall carry out a study on the feasibility of
requiring pilots of helicopters providing air ambulance
services under part 135 of title 14, Code of Federal
Regulations, to use night vision goggles during nighttime
operations.
(b) Considerations.--In conducting the study, the
Administrator shall consult with owners and operators of
helicopters providing air ambulance services under such part
135 and aviation safety professionals to determine the
benefits, financial considerations, and risks associated with
requiring the use of night vision goggles.
(c) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Administrator shall submit
to 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
results of the study.

SEC. 319. MAINTENANCE PROVIDERS.

(a) Regulations.--Not later than 3 years after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall issue regulations requiring
that covered work on an aircraft used to provide air
transportation under part 121 of title 14, Code of Federal
Regulations, be performed by persons in accordance with
subsection (b).
(b) Persons Authorized To Perform Certain Work.--A person
may perform covered work on aircraft used to provide air
transportation under part 121 of title 14, Code of Federal
Regulations, only if the person is employed by--
(1) a part 121 air carrier;
(2) a part 145 repair station or a person authorized under
section 43.17 of title 14, Code of Federal Regulations (or
any successor regulation); or
(3) subject to subsection (c), a person that--
(A) provides contract maintenance workers, services, or
maintenance functions to a part 121 air carrier or part 145
repair station; and
(B) meets the requirements of the part 121 air carrier or
the part 145 repair station, as appropriate.
(c) Terms and Conditions.--Covered work performed by a
person who is employed by a person described in subsection
(b)(3) shall be subject to the following terms and
conditions:
(1) The applicable part 121 air carrier shall be directly
in charge of the covered work being performed.
(2) The covered work shall be carried out in accordance
with the part 121 air carrier's maintenance manual.
(3) The person shall carry out the covered work under the
supervision and control of the part 121 air carrier directly
in charge of the covered work being performed on its
aircraft.
(d) Definitions.--In this section, the following
definitions apply:
(1) Covered work.--The term ``covered work'' means any of
the following:
(A) Essential maintenance that could result in a failure,
malfunction, or defect endangering the safe operation of an
aircraft if not performed properly or if improper parts or
materials are used.
(B) Regularly scheduled maintenance.
(C) A required inspection item (as defined by the
Administrator).
(2) Part 121 air carrier.--The term ``part 121 air
carrier'' means an air carrier that holds a certificate
issued under part 121 of title 14, Code of Federal
Regulations.
(3) Part 145 repair station.--The term ``part 145 repair
station'' means a repair station that holds a certificate
issued under part 145 of title 14, Code of Federal
Regulations.
(4) Person.--The term ``person'' means an individual, firm,
partnership, corporation, company, or association that
performs maintenance, preventative maintenance, or
alterations.

SEC. 320. STUDY OF AIR QUALITY IN AIRCRAFT CABINS.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall initiate a study of air quality
in aircraft cabins to--
(1) assess bleed air quality on the full range of
commercial aircraft operating in the United States;
(2) identify oil-based contaminants, hydraulic fluid
toxins, and other air toxins that appear in cabin air and
measure the quantity and prevalence, or absence, of those
toxins through a comprehensive sampling program;
(3) determine the specific amount and duration of toxic
fumes present in aircraft cabins that constitutes a health
risk to passengers;
(4) develop a systematic reporting standard for smoke and
fume events in aircraft cabins; and
(5) identify the potential health risks to individuals
exposed to toxic fumes during flight.
(b) Authority To Monitor Air in Aircraft Cabins.--For
purposes of conducting the study required by subsection (a),
the Administrator of the Federal Aviation Administration
shall require domestic air carriers to allow air quality
monitoring on their aircraft in a manner that imposes no
significant costs on the air carrier and does not interfere
with the normal operation of the aircraft.

SEC. 321. IMPROVED PILOT LICENSES.

(a) In General.--The Administrator of the Federal Aviation
Administration shall issue improved pilot licenses consistent
with requirements under this section.
(b) Timing.--Not later than 270 days after the date of
enactment of this Act, the Administrator shall--
(1) provide to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate a report containing--
(A) a timeline for the phased issuance of improved pilot
licenses under this section that ensures all pilots are
issued such licenses not later than 2 years after the initial
issuance of such licenses under paragraph (2); and
(B) recommendations for the Federal installation of
infrastructure necessary to take advantage of information
contained on improved pilot licenses issued under this
section, which identify the necessary infrastructure,
indicate the Federal entity that should be responsible for
installing, funding, and operating the infrastructure at
airport sterile areas, and provide an estimate of the costs
of the infrastructure; and
(2) begin to issue improved pilot licenses consistent with
the requirements of title 49, United States Code, and title
14, Code of Federal Regulations.
(c) Requirements.--Improved pilot licenses issued under
this section shall--
(1) be resistant to tampering, alteration, and
counterfeiting;
(2) include a photograph of the individual to whom the
license is issued for identification purposes; and
(3) be smart cards that--
(A) accommodate iris and fingerprint biometric identifiers;
and
(B) are compliant with Federal Information Processing
Standards-201 (FIPS-201) or Personal Identity Verification-
Interoperability Standards (PIV-I) for processing through
security checkpoints into airport sterile areas.
(d) Tampering.--To the extent practicable, the
Administrator shall develop methods to determine or reveal
whether any component or security feature of an improved
pilot license issued under this section has been tampered
with, altered, or counterfeited.

[[Page H247]]

(e) Use of Designees.--The Administrator may use designees
to carry out subsection (a) to the extent practicable in
order to minimize the burdens on pilots.
(f) Report to Congress.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the
Administrator shall submit to 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 issuance of improved pilot licenses
under this section.
(2) Expiration.--The Administrator shall not be required to
submit annual reports under this subsection after the date on
which the Administrator has issued improved pilot licenses
under this section to all pilots.

Subtitle B--Unmanned Aircraft Systems

SEC. 331. DEFINITIONS.

In this subtitle, the following definitions apply:
(1) Arctic.--The term ``Arctic'' means the United States
zone of the Chukchi Sea, Beaufort Sea, and Bering Sea north
of the Aleutian chain.
(2) Certificate of waiver; certificate of authorization.--
The terms ``certificate of waiver'' and ``certificate of
authorization'' mean a Federal Aviation Administration grant
of approval for a specific flight operation.
(3) Permanent areas.--The term ``permanent areas'' means
areas on land or water that provide for launch, recovery, and
operation of small unmanned aircraft.
(4) Public unmanned aircraft system.--The term ``public
unmanned aircraft system'' means an unmanned aircraft system
that meets the qualifications and conditions required for
operation of a public aircraft (as defined in section 40102
of title 49, United States Code).
(5) Sense and avoid capability.--The term ``sense and avoid
capability'' means the capability of an unmanned aircraft to
remain a safe distance from and to avoid collisions with
other airborne aircraft.
(6) Small unmanned aircraft.--The term ``small unmanned
aircraft'' means an unmanned aircraft weighing less than 55
pounds.
(7) Test range.--The term ``test range'' means a defined
geographic area where research and development are conducted.
(8) Unmanned aircraft.--The term ``unmanned aircraft''
means an aircraft that is operated without the possibility of
direct human intervention from within or on the aircraft.
(9) Unmanned aircraft system.--The term ``unmanned aircraft
system'' means an unmanned aircraft and associated elements
(including communication links and the components that
control the unmanned aircraft) that are required for the
pilot in command to operate safely and efficiently in the
national airspace system.

SEC. 332. INTEGRATION OF CIVIL UNMANNED AIRCRAFT SYSTEMS INTO
NATIONAL AIRSPACE SYSTEM.

(a) Required Planning for Integration.--
(1) Comprehensive plan.--Not later than 270 days after the
date of enactment of this Act, the Secretary of
Transportation, in consultation with representatives of the
aviation industry, Federal agencies that employ unmanned
aircraft systems technology in the national airspace system,
and the unmanned aircraft systems industry, shall develop a
comprehensive plan to safely accelerate the integration of
civil unmanned aircraft systems into the national airspace
system.
(2) Contents of plan.--The plan required under paragraph
(1) shall contain, at a minimum, recommendations or
projections on--
(A) the rulemaking to be conducted under subsection (b),
with specific recommendations on how the rulemaking will--
(i) define the acceptable standards for operation and
certification of civil unmanned aircraft systems;
(ii) ensure that any civil unmanned aircraft system
includes a sense and avoid capability; and
(iii) establish standards and requirements for the operator
and pilot of a civil unmanned aircraft system, including
standards and requirements for registration and licensing;
(B) the best methods to enhance the technologies and
subsystems necessary to achieve the safe and routine
operation of civil unmanned aircraft systems in the national
airspace system;
(C) a phased-in approach to the integration of civil
unmanned aircraft systems into the national airspace system;
(D) a timeline for the phased-in approach described under
subparagraph (C);
(E) creation of a safe
(F) airspace designation for cooperative manned and
unmanned flight operations in the national airspace system;
(G) establishment of a process to develop certification,
flight standards, and air traffic requirements for civil
unmanned aircraft systems at test ranges where such systems
are subject to testing;
(H) the best methods to ensure the safe operation of civil
unmanned aircraft systems and public unmanned aircraft
systems simultaneously in the national airspace system; and
(I) incorporation of the plan into the annual NextGen
Implementation Plan document (or any successor document) of
the Federal Aviation Administration.
(3) Deadline.--The plan required under paragraph (1) shall
provide for the safe integration of civil unmanned aircraft
systems into the national airspace system as soon as
practicable, but not later than September 30, 2015.
(4) Report to congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall submit to
Congress a copy of the plan required under paragraph (1).
(5) Roadmap.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall approve and make
available in print and on the Administration's Internet Web
site a 5-year roadmap for the introduction of civil unmanned
aircraft systems into the national airspace system, as
coordinated by the Unmanned Aircraft Program Office of the
Administration. The Secretary shall update the roadmap
annually.
(b) Rulemaking.--Not later than 18 months after the date on
which the plan required under subsection (a)(1) is submitted
to Congress under subsection (a)(4), the Secretary shall
publish in the Federal Register--
(1) a final rule on small unmanned aircraft systems that
will allow for civil operation of such systems in the
national airspace system, to the extent the systems do not
meet the requirements for expedited operational authorization
under section 333 of this Act;
(2) a notice of proposed rulemaking to implement the
recommendations of the plan required under subsection (a)(1),
with the final rule to be published not later than 16 months
after the date of publication of the notice; and
(3) an update to the Administration's most recent policy
statement on unmanned aircraft systems, contained in Docket
No. FAA-2006-25714.
(c) Pilot Projects.--
(1) Establishment.--Not later than 180 days after the date
of enactment of this Act, the Administrator shall establish a
program to integrate unmanned aircraft systems into the
national airspace system at 6 test ranges. The program shall
terminate 5 years after the date of enactment of this Act.
(2) Program requirements.--In establishing the program
under paragraph (1), the Administrator shall--
(A) safely designate airspace for integrated manned and
unmanned flight operations in the national airspace system;
(B) develop certification standards and air traffic
requirements for unmanned flight operations at test ranges;
(C) coordinate with and leverage the resources of the
National Aeronautics and Space Administration and the
Department of Defense;
(D) address both civil and public unmanned aircraft
systems;
(E) ensure that the program is coordinated with the Next
Generation Air Transportation System; and
(F) provide for verification of the safety of unmanned
aircraft systems and related navigation procedures before
integration into the national airspace system.
(3) Test range locations.--In determining the location of
the 6 test ranges of the program under paragraph (1), the
Administrator shall--
(A) take into consideration geographic and climatic
diversity;
(B) take into consideration the location of ground
infrastructure and research needs; and
(C) consult with the National Aeronautics and Space
Administration and the Department of Defense.
(4) Test range operation.--A project at a test range shall
be operational not later than 180 days after the date on
which the project is established.
(5) Report to congress.--
(A) In general.--Not later than 90 days after the date of
the termination of the program under paragraph (1), the
Administrator shall submit to the Committee on Commerce,
Science, and Transportation of the Senate and the Committee
on Transportation and Infrastructure and the Committee on
Science, Space, and Technology of the House of
Representatives a report setting forth the Administrator's
findings and conclusions concerning the projects.
(B) Additional contents.--The report under subparagraph (A)
shall include a description and assessment of the progress
being made in establishing special use airspace to fill the
immediate need of the Department of Defense--
(i) to develop detection techniques for small unmanned
aircraft systems; and
(ii) to validate the sense and avoid capability and
operation of unmanned aircraft systems.
(d) Expanding Use of Unmanned Aircraft Systems in Arctic.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall develop a plan and
initiate a process to work with relevant Federal agencies and
national and international communities to designate permanent
areas in the Arctic where small unmanned aircraft may operate
24 hours per day for research and commercial purposes. The
plan for operations in these permanent areas shall include
the development of processes to facilitate the safe operation
of unmanned aircraft beyond line of sight. Such areas shall
enable over-water flights from the surface to at least 2,000
feet in altitude, with ingress and egress routes from
selected coastal launch sites.
(2) Agreements.--To implement the plan under paragraph (1),
the Secretary may enter into an agreement with relevant
national and international communities.
(3) Aircraft approval.--Not later than 1 year after the
entry into force of an agreement necessary to effectuate the
purposes of this subsection, the Secretary shall work with
relevant national and international communities to establish
and implement a process, or may apply an applicable process
already established, for approving the use of unmanned
aircraft in the designated permanent areas in the Arctic
without regard to whether an unmanned aircraft is used as a
public aircraft, a civil aircraft, or a model aircraft.

SEC. 333. SPECIAL RULES FOR CERTAIN UNMANNED AIRCRAFT
SYSTEMS.

(a) In General.--Notwithstanding any other requirement of
this subtitle, and not later than 180 days after the date of
enactment of this Act, the Secretary of Transportation shall
determine if certain unmanned aircraft systems may operate
safely in the national airspace system before completion of
the plan and rulemaking required

[[Page H248]]

by section 332 of this Act or the guidance required by
section 334 of this Act.
(b) Assessment of Unmanned Aircraft Systems.--In making the
determination under subsection (a), the Secretary shall
determine, at a minimum--
(1) which types of unmanned aircraft systems, if any, as a
result of their size, weight, speed, operational capability,
proximity to airports and populated areas, and operation
within visual line of sight do not create a hazard to users
of the national airspace system or the public or pose a
threat to national security; and
(2) whether a certificate of waiver, certificate of
authorization, or airworthiness certification under section
44704 of title 49, United States Code, is required for the
operation of unmanned aircraft systems identified under
paragraph (1).
(c) Requirements for Safe Operation.--If the Secretary
determines under this section that certain unmanned aircraft
systems may operate safely in the national airspace system,
the Secretary shall establish requirements for the safe
operation of such aircraft systems in the national airspace
system.

SEC. 334. PUBLIC UNMANNED AIRCRAFT SYSTEMS.

(a) Guidance.--Not later than 270 days after the date of
enactment of this Act, the Secretary of Transportation shall
issue guidance regarding the operation of public unmanned
aircraft systems to--
(1) expedite the issuance of a certificate of authorization
process;
(2) provide for a collaborative process with public
agencies to allow for an incremental expansion of access to
the national airspace system as technology matures and the
necessary safety analysis and data become available, and
until standards are completed and technology issues are
resolved;
(3) facilitate the capability of public agencies to develop
and use test ranges, subject to operating restrictions
required by the Federal Aviation Administration, to test and
operate unmanned aircraft systems; and
(4) provide guidance on a public entity's responsibility
when operating an unmanned aircraft without a civil
airworthiness certificate issued by the Administration.
(b) Standards for Operation and Certification.--Not later
than December 31, 2015, the Administrator shall develop and
implement operational and certification requirements for the
operation of public unmanned aircraft systems in the national
airspace system.
(c) Agreements With Government Agencies.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall enter into
agreements with appropriate government agencies to simplify
the process for issuing certificates of waiver or
authorization with respect to applications seeking
authorization to operate public unmanned aircraft systems in
the national airspace system.
(2) Contents.--The agreements shall--
(A) with respect to an application described in paragraph
(1)--
(i) provide for an expedited review of the application;
(ii) require a decision by the Administrator on approval or
disapproval within 60 business days of the date of submission
of the application; and
(iii) allow for an expedited appeal if the application is
disapproved;
(B) allow for a one-time approval of similar operations
carried out during a fixed period of time; and
(C) allow a government public safety agency to operate
unmanned aircraft weighing 4.4 pounds or less, if operated--
(i) within the line of sight of the operator;
(ii) less than 400 feet above the ground;
(iii) during daylight conditions;
(iv) within Class G airspace; and
(v) outside of 5 statute miles from any airport, heliport,
seaplane base, spaceport, or other location with aviation
activities.

SEC. 335. SAFETY STUDIES.

The Administrator of the Federal Aviation Administration
shall carry out all safety studies necessary to support the
integration of unmanned aircraft systems into the national
airspace system.

SEC. 336. SPECIAL RULE FOR MODEL AIRCRAFT.

(a) In General.--Notwithstanding any other provision of law
relating to the incorporation of unmanned aircraft systems
into Federal Aviation Administration plans and policies,
including this subtitle, the Administrator of the Federal
Aviation Administration may not promulgate any rule or
regulation regarding a model aircraft, or an aircraft being
developed as a model aircraft, if--
(1) the aircraft is flown strictly for hobby or
recreational use;
(2) the aircraft is operated in accordance with a
community-based set of safety guidelines and within the
programming of a nationwide community-based organization;
(3) the aircraft is limited to not more than 55 pounds
unless otherwise certified through a design, construction,
inspection, flight test, and operational safety program
administered by a community-based organization;
(4) the aircraft is operated in a manner that does not
interfere with and gives way to any manned aircraft; and
(5) when flown within 5 miles of an airport, the operator
of the aircraft provides the airport operator and the airport
air traffic control tower (when an air traffic facility is
located at the airport) with prior notice of the operation
(model aircraft operators flying from a permanent location
within 5 miles of an airport should establish a mutually-
agreed upon operating procedure with the airport operator and
the airport air traffic control tower (when an air traffic
facility is located at the airport)).
(b) Statutory Construction.--Nothing in this section shall
be construed to limit the authority of the Administrator to
pursue enforcement action against persons operating model
aircraft who endanger the safety of the national airspace
system.
(c) Model Aircraft Defined.--In this section, the term
``model aircraft'' means an unmanned aircraft that is--
(1) capable of sustained flight in the atmosphere;
(2) flown within visual line of sight of the person
operating the aircraft; and
(3) flown for hobby or recreational purposes.

Subtitle C--Safety and Protections

SEC. 341. AVIATION SAFETY WHISTLEBLOWER INVESTIGATION OFFICE.

Section 106 (as amended by this Act) is further amended by
adding at the end the following:
``(t) Aviation Safety Whistleblower Investigation Office.--
``(1) Establishment.--There is established in the Federal
Aviation Administration (in this subsection referred to as
the `Agency') an Aviation Safety Whistleblower Investigation
Office (in this subsection referred to as the `Office').
``(2) Director.--
``(A) Appointment.--The head of the Office shall be the
Director, who shall be appointed by the Secretary of
Transportation.
``(B) Qualifications.--The Director shall have a
demonstrated ability in investigations and knowledge of or
experience in aviation.
``(C) Term.--The Director shall be appointed for a term of
5 years.
``(D) Vacancies.--Any individual appointed to fill a
vacancy in the position of the Director occurring before the
expiration of the term for which the individual's predecessor
was appointed shall be appointed for the remainder of that
term.
``(3) Complaints and investigations.--
``(A) Authority of director.--The Director shall--
``(i) receive complaints and information submitted by
employees of persons holding certificates issued under title
14, Code of Federal Regulations (if the certificate holder
does not have a similar in-house whistleblower or safety and
regulatory noncompliance reporting process) and employees of
the Agency concerning the possible existence of an activity
relating to a violation of an order, a regulation, or any
other provision of Federal law relating to aviation safety;
``(ii) assess complaints and information submitted under
clause (i) and determine whether a substantial likelihood
exists that a violation of an order, a regulation, or any
other provision of Federal law relating to aviation safety
has occurred; and
``(iii) based on findings of the assessment conducted under
clause (ii), make recommendations to the Administrator of the
Agency, in writing, regarding further investigation or
corrective actions.
``(B) Disclosure of identities.--The Director shall not
disclose the identity of an individual who submits a
complaint or information under subparagraph (A)(i) unless--
``(i) the individual consents to the disclosure in writing;
or
``(ii) the Director determines, in the course of an
investigation, that the disclosure is required by regulation,
statute, or court order, or is otherwise unavoidable, in
which case the Director shall provide the individual
reasonable advanced notice of the disclosure.
``(C) Independence of director.--The Secretary, the
Administrator, or any officer or employee of the Agency may
not prevent or prohibit the Director from initiating,
carrying out, or completing any assessment of a complaint or
information submitted under subparagraph (A)(i) or from
reporting to Congress on any such assessment.
``(D) Access to information.--In conducting an assessment
of a complaint or information submitted under subparagraph
(A)(i), the Director shall have access to all records,
reports, audits, reviews, documents, papers, recommendations,
and other material of the Agency necessary to determine
whether a substantial likelihood exists that a violation of
an order, a regulation, or any other provision of Federal law
relating to aviation safety may have occurred.
``(4) Responses to recommendations.--Not later than 60 days
after the date on which the Administrator receives a report
with respect to an investigation, the Administrator shall
respond to a recommendation made by the Director under
paragraph (3)(A)(iii) in writing and retain records related
to any further investigations or corrective actions taken in
response to the recommendation.
``(5) Incident reports.--If the Director determines there
is a substantial likelihood that a violation of an order, a
regulation, or any other provision of Federal law relating to
aviation safety has occurred that requires immediate
corrective action, the Director shall report the potential
violation expeditiously to the Administrator and the
Inspector General of the Department of Transportation.
``(6) Reporting of criminal violations to inspector
general.--If the Director has reasonable grounds to believe
that there has been a violation of Federal criminal law, the
Director shall report the violation expeditiously to the
Inspector General.
``(7) Annual reports to congress.--Not later than October 1
of each year, the Director shall submit to Congress a report
containing--
``(A) information on the number of submissions of
complaints and information received by the Director under
paragraph (3)(A)(i) in the preceding 12-month period;
``(B) summaries of those submissions;
``(C) summaries of further investigations and corrective
actions recommended in response to the submissions; and
``(D) summaries of the responses of the Administrator to
such recommendations.''.

[[Page H249]]

SEC. 342. POSTEMPLOYMENT RESTRICTIONS FOR FLIGHT STANDARDS
INSPECTORS.

(a) In General.--Section 44711 is amended by adding at the
end the following:
``(d) Postemployment Restrictions for Flight Standards
Inspectors.--
``(1) Prohibition.--A person holding an operating
certificate issued under title 14, Code of Federal
Regulations, may not knowingly employ, or make a contractual
arrangement that permits, an individual to act as an agent or
representative of the certificate holder in any matter before
the Federal Aviation Administration if the individual, in the
preceding 2-year period--
``(A) served as, or was responsible for oversight of, a
flight standards inspector of the Administration; and
``(B) had responsibility to inspect, or oversee inspection
of, the operations of the certificate holder.
``(2) Written and oral communications.--For purposes of
paragraph (1), an individual shall be considered to be acting
as an agent or representative of a certificate holder in a
matter before the Administration if the individual makes any
written or oral communication on behalf of the certificate
holder to the Administration (or any of its officers or
employees) in connection with a particular matter, whether or
not involving a specific party and without regard to whether
the individual has participated in, or had responsibility
for, the particular matter while serving as a flight
standards inspector of the Administration.''.
(b) Applicability.--The amendment made by subsection (a)
shall not apply to an individual employed by a certificate
holder as of the date of enactment of this Act.

SEC. 343. REVIEW OF AIR TRANSPORTATION OVERSIGHT SYSTEM
DATABASE.

(a) Reviews.--The Administrator of the Federal Aviation
Administration shall establish a process by which the air
transportation oversight system database of the
Administration is reviewed by regional teams of employees of
the Administration, including at least one employee on each
team representing aviation safety inspectors, on a monthly
basis to ensure that--
(1) any trends in regulatory compliance are identified; and
(2) appropriate corrective actions are taken in accordance
with Administration regulations, advisory directives,
policies, and procedures.
(b) Monthly Team Reports.--
(1) In general.--A regional team of employees conducting a
monthly review of the air transportation oversight system
database under subsection (a) shall submit to the
Administrator, the Associate Administrator for Aviation
Safety, and the Director of Flight Standards Service a report
each month on the results of the review.
(2) Contents.--A report submitted under paragraph (1) shall
identify--
(A) any trends in regulatory compliance discovered by the
team of employees in conducting the monthly review; and
(B) any corrective actions taken or proposed to be taken in
response to the trends.
(c) Biannual Reports to Congress.--The Administrator, on a
biannual basis, shall submit to 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 results of the
reviews of the air transportation oversight system database
conducted under this section, including copies of reports
received under subsection (b).

SEC. 344. IMPROVED VOLUNTARY DISCLOSURE REPORTING SYSTEM.

(a) Voluntary Disclosure Reporting Program Defined.--In
this section, the term ``Voluntary Disclosure Reporting
Program'' means the program established by the Federal
Aviation Administration through Advisory Circular 00-58A,
dated September 8, 2006, including any subsequent revisions
thereto.
(b) Verification.--The Administrator of the Federal
Aviation Administration shall modify the Voluntary Disclosure
Reporting Program to require inspectors to--
(1) verify that air carriers are implementing comprehensive
solutions to correct the underlying causes of the violations
voluntarily disclosed by such air carriers; and
(2) confirm, before approving a final report of a
violation, that a violation with the same root causes, has
not been previously discovered by an inspector or self-
disclosed by the air carrier.
(c) Supervisory Review of Voluntary Self-disclosures.--The
Administrator shall establish a process by which voluntary
self-disclosures received from air carriers are reviewed and
approved by a supervisor after the initial review by an
inspector.
(d) Inspector General Study.--
(1) In general.--The Inspector General of the Department of
Transportation shall conduct a study of the Voluntary
Disclosure Reporting Program.
(2) Review.--In conducting the study, the Inspector General
shall examine, at a minimum, if the Administration--
(A) conducts comprehensive reviews of voluntary disclosure
reports before closing a voluntary disclosure report under
the provisions of the program;
(B) evaluates the effectiveness of corrective actions taken
by air carriers; and
(C) effectively prevents abuse of the voluntary disclosure
reporting program through its secondary review of self-
disclosures before they are accepted and closed by the
Administration.
(3) Report to congress.--Not later than 1 year after the
date of enactment of this Act, the Inspector General shall
submit to the Committee on Transportation and Infrastructure
of the House of Representatives and Committee on Commerce,
Science, and Transportation of the Senate a report on the
results of the study conducted under this section.

SEC. 345. DUTY PERIODS AND FLIGHT TIME LIMITATIONS APPLICABLE
TO FLIGHT CREWMEMBERS.

(a) Rulemaking on Applicability of Part 121 Duty Periods
and Flight Time Limitations to Part 91 Operations.--Not later
than 180 days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration shall
initiate a rulemaking proceeding, if such a proceeding has
not already been initiated, to require a flight crewmember
who is employed by an air carrier conducting operations under
part 121 of title 14, Code of Federal Regulations, and who
accepts an additional assignment for flying under part 91 of
such title from the air carrier or from any other air carrier
conducting operations under part 121 or 135 of such title, to
apply the period of the additional assignment (regardless of
whether the assignment is performed by the flight crewmember
before or after an assignment to fly under part 121 of such
title) toward any limitation applicable to the flight
crewmember relating to duty periods or flight times under
part 121 of such title.
(b) Rulemaking on Applicability of Part 135 Duty Periods
and Flight Time Limitations to Part 91 Operations.--Not later
than 1 year after the date of enactment of this Act, the
Administrator shall initiate a rulemaking proceeding to
require a flight crewmember who is employed by an air carrier
conducting operations under part 135 of title 14, Code of
Federal Regulations, and who accepts an additional assignment
for flying under part 91 of such title from the air carrier
or any other air carrier conducting operations under part 121
or 135 of such title, to apply the period of the additional
assignment (regardless of whether the assignment is performed
by the flight crewmember before or after an assignment to fly
under part 135 of such title) toward any limitation
applicable to the flight crewmember relating to duty periods
or flight times under part 135 of such title.
(c) Separate Rulemaking Proceedings Required.--The
rulemaking proceeding required under subsection (b) shall be
separate from the rulemaking proceeding required under
subsection (a).

SEC. 346. CERTAIN EXISTING FLIGHT TIME LIMITATIONS AND REST
REQUIREMENTS.

The Administrator of the Federal Aviation Administration
may not finalize the interpretation proposed in Docket No.
FAA-2010-1259, relating to rest requirements, and published
in the Federal Register on December 23, 2010.

SEC. 347. EMERGENCY LOCATOR TRANSMITTERS ON GENERAL AVIATION
AIRCRAFT.

(a) Inspection.--As part of the annual inspection of
general aviation aircraft, the Administrator of the Federal
Aviation Administration shall require a detailed inspection
of each emergency locator transmitter (in this section
referred to as an ``ELT'') installed in general aviation
aircraft operating in the United States to ensure that the
ELT is mounted and retained in accordance with the
manufacturer's specifications.
(b) Mounting and Retention.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall determine if
the ELT mounting requirements and retention tests specified
by Technical Standard Orders C91a and C126 are adequate to
assess retention capabilities in ELT designs.
(2) Revision.--Based on the determination under paragraph
(1), the Administrator shall make any necessary revisions to
the requirements and retention tests referred to in paragraph
(1) to ensure that ELTs are properly retained in the event of
an aircraft accident.
(c) Report.--Upon the completion of any revisions under
subsection (b)(2), the Administrator shall submit a report on
the implementation of this section to--
(1) the Committee on Commerce, Science, and Transportation
of the Senate; and
(2) the Committee on Transportation and Infrastructure of
the House of Representatives.

TITLE IV--AIR SERVICE IMPROVEMENTS

Subtitle A--Passenger Air Service Improvements

SEC. 401. SMOKING PROHIBITION.

(a) In General.--Section 41706 is amended--
(1) in the section heading by striking ``scheduled'' and
inserting ``passenger''; and
(2) by striking subsections (a) and (b) and inserting the
following:
``(a) Smoking Prohibition in Interstate and Intrastate Air
Transportation.--An individual may not smoke--
``(1) in an aircraft in scheduled passenger interstate or
intrastate air transportation; or
``(2) in an aircraft in nonscheduled passenger interstate
or intrastate air transportation, if a flight attendant is a
required crewmember on the aircraft (as determined by the
Administrator of the Federal Aviation Administration).
``(b) Smoking Prohibition in Foreign Air Transportation.--
The Secretary of Transportation shall require all air
carriers and foreign air carriers to prohibit smoking--
``(1) in an aircraft in scheduled passenger foreign air
transportation; and
``(2) in an aircraft in nonscheduled passenger foreign air
transportation, if a flight attendant is a required
crewmember on the aircraft (as determined by the
Administrator or a foreign government).''.
(b) Clerical Amendment.--The analysis for chapter 417 is
amended by striking the item relating to section 41706 and
inserting the following:

``41706. Prohibitions against smoking on passenger flights.''.

SEC. 402. MONTHLY AIR CARRIER REPORTS.

(a) In General.--Section 41708 is amended by adding at the
end the following:
``(c) Diverted and Cancelled Flights.--
``(1) Monthly reports.--The Secretary shall require an air
carrier referred to in paragraph

[[Page H250]]

(2) to file with the Secretary a monthly report on each
flight of the air carrier that is diverted from its scheduled
destination to another airport and each flight of the air
carrier that departs the gate at the airport at which the
flight originates but is cancelled before wheels-off time.
``(2) Applicability.--An air carrier that is required to
file a monthly airline service quality performance report
pursuant to part 234 of title 14, Code of Federal
Regulations, shall be subject to the requirement of paragraph
(1).
``(3) Contents.--A monthly report filed by an air carrier
under paragraph (1) shall include, at a minimum, the
following information:
``(A) For a diverted flight--
``(i) the flight number of the diverted flight;
``(ii) the scheduled destination of the flight;
``(iii) the date and time of the flight;
``(iv) the airport to which the flight was diverted;
``(v) wheels-on time at the diverted airport;
``(vi) the time, if any, passengers deplaned the aircraft
at the diverted airport; and
``(vii) if the flight arrives at the scheduled destination
airport--

``(I) the gate-departure time at the diverted airport;
``(II) the wheels-off time at the diverted airport;
``(III) the wheels-on time at the scheduled arrival
airport; and
``(IV) the gate-arrival time at the scheduled arrival
airport.

``(B) For flights cancelled after gate departure--
``(i) the flight number of the cancelled flight;
``(ii) the scheduled origin and destination airports of the
cancelled flight;
``(iii) the date and time of the cancelled flight;
``(iv) the gate-departure time of the cancelled flight; and
``(v) the time the aircraft returned to the gate.
``(4) Publication.--The Secretary shall compile the
information provided in the monthly reports filed pursuant to
paragraph (1) in a single monthly report and publish such
report on the Internet Web site of the Department of
Transportation.''.
(b) Effective Date.--Beginning not later than 90 days after
the date of enactment of this Act, the Secretary of
Transportation shall require monthly reports pursuant to the
amendment made by subsection (a).

SEC. 403. MUSICAL INSTRUMENTS.

(a) In General.--Subchapter I of chapter 417 is amended by
adding at the end 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 charging the passenger a fee in
addition to any standard fee that carrier may require for
comparable carry-on baggage, if--
``(A) the instrument can be stowed safely in a suitable
baggage compartment in the aircraft cabin or under a
passenger seat, in accordance with the requirements for
carriage of carry-on baggage or cargo established by the
Administrator; 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
charging the passenger a fee in addition to the cost of the
additional ticket described in subparagraph (E), 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 or the applicable weight
restrictions for the aircraft;
``(C) the instrument can be stowed in accordance with the
requirements for carriage of carry-on baggage or cargo
established by the Administrator;
``(D) 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
``(E) 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 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 150 inches or the
applicable size restrictions for the aircraft;
``(B) the weight of the instrument does not exceed 165
pounds or the applicable weight restrictions for the
aircraft; and
``(C) the instrument can be stowed in accordance with the
requirements for carriage of carry-on baggage or cargo
established by the Administrator.
``(b) Regulations.--Not later than 2 years after the date
of enactment of this section, the Secretary shall issue final
regulations to carry out subsection (a).
``(c) Effective Date.--The requirements of this section
shall become effective on the date of issuance of the final
regulations under subsection (b).''.
(b) Conforming Amendment.--The analysis for such subchapter
is amended by adding at the end the following:

``41724. Musical instruments.''.

SEC. 404. EXTENSION OF COMPETITIVE ACCESS REPORTS.

Section 47107(s)(3) is amended to read as follows:
``(3) Sunset provision.--This subsection shall cease to be
effective beginning October 1, 2015.''.

SEC. 405. AIRFARES FOR MEMBERS OF THE ARMED FORCES.

(a) Findings.--Congress finds that--
(1) the Armed Forces is comprised of approximately
1,450,000 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--
(1) all United States commercial air carriers should seek
to lend their support with flexible, generous policies
applicable to members of the Armed Forces who are traveling
on leave or liberty at their own expense; and
(2) each United States air carrier, for all members of the
Armed Forces who have been granted leave or liberty and who
are traveling by air at their own expense, should--
(A) seek to provide reduced air fares that are comparable
to the lowest airfare for ticketed flights and that eliminate
to the maximum extent possible advance purchase requirements;
(B) seek to eliminate change fees or charges and any
penalties;
(C) seek to eliminate or reduce baggage and excess weight
fees;
(D) offer flexible terms that allow members to purchase,
modify, or cancel tickets without time restrictions, and to
waive fees (including baggage fees), ancillary costs, or
penalties; and
(E) seek to take proactive measures to ensure that all
airline employees, particularly those who issue tickets and
respond to members of the Armed Forces and their family
members, are trained in the policies of the airline aimed at
benefitting members of the Armed Forces who are on leave or
liberty.

SEC. 406. REVIEW OF AIR CARRIER FLIGHT DELAYS, CANCELLATIONS,
AND ASSOCIATED CAUSES.

(a) Review.--The Inspector General of the Department of
Transportation shall conduct a review regarding air carrier
flight delays, cancellations, and associated causes to update
the 2000 report numbered CR-2000-112 and titled ``Audit of
Air Carrier Flight Delays and Cancellations''.
(b) Assessments.--In conducting the review under subsection
(a), the Inspector General shall assess--
(1) the need for an update on delay and cancellation
statistics, including with respect to the number of
chronically delayed flights and taxi-in and taxi-out times;
(2) air carriers' scheduling practices;
(3) the need for a reexamination of capacity benchmarks at
the Nation's busiest airports;
(4) the impact of flight delays and cancellations on air
travelers, including recommendations for programs that could
be implemented to address the impact of flight delays on air
travelers;
(5) the effect that limited air carrier service options on
routes have on the frequency of delays and cancellations on
such routes;
(6) the effect of the rules and regulations of the
Department of Transportation on the decisions of air carriers
to delay or cancel flights; and
(7) the impact of flight delays and cancellations on the
airline industry.
(c) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Inspector General shall
submit to 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 results of the review conducted under this section,
including the assessments described in subsection (b).

SEC. 407. COMPENSATION FOR DELAYED BAGGAGE.

(a) Study.--The Comptroller General of the United States
shall conduct a study to--
(1) examine delays in the delivery of checked baggage to
passengers of air carriers; and
(2) assess the options for and examine the impact of
establishing minimum standards to compensate a passenger in
the case of an unreasonable delay in the delivery of checked
baggage.
(b) Consideration.--In conducting the study, the
Comptroller General shall take into account the additional
fees for checked baggage that are imposed by many air
carriers and how the additional fees should improve an air
carrier's baggage performance.
(c) Report to Congress.--Not later than 180 days after the
date of enactment of this Act, the Comptroller General shall
transmit to Congress a report on the results of the study.

SEC. 408. DOT AIRLINE CONSUMER COMPLAINT INVESTIGATIONS.

The Secretary of Transportation may investigate consumer
complaints regarding--
(1) flight cancellations;
(2) compliance with Federal regulations concerning
overbooking seats on flights;

[[Page H251]]

(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 flyer miles
or equivalent redeemable awards earned through customer-
loyalty programs; and
(7) deceptive or misleading advertising.

SEC. 409. STUDY OF OPERATORS REGULATED UNDER PART 135.

(a) Study Required.--The Administrator of the Federal
Aviation Administration, in consultation with interested
parties, shall conduct a study of operators regulated under
part 135 of title 14, Code of Federal Regulations.
(b) Contents.--In conducting the study under subsection
(a), the Administrator shall analyze the part 135 fleet in
the United States, which shall include analysis of--
(1) the size and type of aircraft in the fleet;
(2) the equipment utilized by the fleet;
(3) the hours flown each year by the fleet;
(4) the utilization rates with respect to the fleet;
(5) the safety record of various categories of use and
aircraft types with respect to the fleet, through a review of
the database of the National Transportation Safety Board;
(6) the sales revenues of the fleet; and
(7) the number of passengers and airports served by the
fleet.
(c) Report to Congress.--Not later than 18 months after the
date of enactment of this Act, the Administrator shall submit
to 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
results of the study conducted under subsection (a).

SEC. 410. USE OF CELL PHONES ON PASSENGER AIRCRAFT.

(a) Cell Phone Study.--Not later than 120 days after the
date of enactment of this Act, the Administrator of the
Federal Aviation Administration shall conduct a study on the
impact of the use of cell phones for voice communications in
an aircraft during a flight in scheduled passenger air
transportation where currently permitted by foreign
governments in foreign air transportation.
(b) Contents.--The study shall include--
(1) a review of foreign government and air carrier policies
on the use of cell phones during flight;
(2) a review of the extent to which passengers use cell
phones for voice communications during flight; and
(3) a summary of any impacts of cell phone use during
flight on safety, the quality of the flight experience of
passengers, and flight attendants.
(c) Comment Period.--Not later than 180 days after the date
of enactment of this Act, the Administrator shall publish in
the Federal Register the results of the study and allow 60
days for public comment.
(d) Cell Phone Report.--Not later than 270 days after the
date of enactment of this Act, the Administrator shall submit
to 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
results of the study.

SEC. 411. 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 activities
relating to airline customer service improvements.
(b) Membership.--The Secretary shall appoint the members of
the advisory committee, which shall be comprised of one
representative each of--
(1) air carriers;
(2) airport operators;
(3) State or local governments with expertise in consumer
protection matters; and
(4) nonprofit public interest groups with 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 for establishing additional
aviation consumer protection programs, if needed.
(g) Report to Congress.--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.
(h) Termination.--The advisory committee established under
this section shall terminate on September 30, 2015.

SEC. 412. DISCLOSURE OF SEAT DIMENSIONS TO FACILITATE THE USE
OF CHILD SAFETY SEATS ON AIRCRAFT.

Not later than 1 year after the date of enactment of this
Act, the Administrator of the Federal Aviation Administration
shall initiate a rulemaking to require each air carrier
operating under part 121 of title 14, Code of Federal
Regulations, to post on the Internet Web site of the air
carrier the maximum dimensions of a child safety seat that
can be used on each aircraft operated by the air carrier to
enable passengers to determine which child safety seats can
be used on those aircraft.

SEC. 413. SCHEDULE REDUCTION.

(a) In General.--If the Administrator of the Federal
Aviation Administration determines that--
(1) the aircraft operations of air carriers during any hour
at an airport exceed the hourly maximum departure and arrival
rate established by the Administrator for such operations;
and
(2) the operations in excess of the maximum departure and
arrival rate for such hour at such airport are likely to have
a significant adverse effect on the safe and efficient use of
navigable airspace,
the Administrator shall convene a meeting of such carriers to
reduce pursuant to section 41722 of title 49, United States
Code, on a voluntary basis, the number of such operations so
as not to exceed the maximum departure and arrival rate.
(b) No Agreement.--If the air carriers participating in a
meeting with respect to an airport under subsection (a) are
not able to agree to a reduction in the number of flights to
and from the airport so as not to exceed the maximum
departure and arrival rate, the Administrator shall take such
action as is necessary to ensure such reduction is
implemented.
(c) Subsequent Schedule Increases.--Subsequent to any
reduction in operations under subsection (a) or (b) at an
airport, if the Administrator determines that the hourly
number of aircraft operations at that airport is less than
the amount that can be handled safely and efficiently, the
Administrator shall ensure that priority is given to United
States air carriers in permitting additional aircraft
operations with respect to that hour.

SEC. 414. RONALD REAGAN WASHINGTON NATIONAL AIRPORT SLOT
EXEMPTIONS.

(a) Increase in Number of Slot Exemptions.--Section 41718
is amended by adding at the end the following:
``(g) Additional Slot Exemptions.--
``(1) Increase in slot exemptions.--Not later than 90 days
after the date of enactment of the FAA Modernization and
Reform Act of 2012, the Secretary shall grant, by order 16
exemptions from--
``(A) the application of sections 49104(a)(5), 49109, and
41714 to air carriers to operate limited frequencies and
aircraft on routes between Ronald Reagan Washington National
Airport and airports located beyond the perimeter described
in section 49109; and
``(B) the requirements of subparts K and S of part 93, Code
of Federal Regulations.
``(2) New entrants and limited incumbents.--Of the slot
exemptions made available under paragraph (1), the Secretary
shall make 8 available to limited incumbent air carriers or
new entrant air carriers (as such terms are defined in
section 41714(h)). Such exemptions shall be allocated
pursuant to the application process established by the
Secretary under subsection (d). The Secretary shall consider
the extent to which the exemptions will--
``(A) provide air transportation with domestic network
benefits in areas beyond the perimeter described in section
49109;
``(B) increase competition in multiple markets;
``(C) not reduce travel options for communities served by
small hub airports and medium hub airports within the
perimeter described in section 49109;
``(D) not result in meaningfully increased travel delays;
``(E) enhance options for nonstop travel to and from the
beyond-perimeter airports that will be served as a result of
those exemptions;
``(F) have a positive impact on the overall level of
competition in the markets that will be served as a result of
those exemptions; or
``(G) produce public benefits, including the likelihood
that the service to airports located beyond the perimeter
described in section 49109 will result in lower fares, higher
capacity, and a variety of service options.
``(3) Improved network slots.--Of the slot exemptions made
available under paragraph (1), the Secretary shall make 8
available to incumbent air carriers qualifying for status as
a non-limited incumbent carrier at Ronald Reagan Washington
National Airport as of the date of enactment of the FAA
Modernization and Reform Act of 2012. Each such non-limited
incumbent air carrier--
``(A) may operate up to a maximum of 2 of the newly
authorized slot exemptions;
``(B) prior to exercising an exemption made available under
paragraph (1), shall discontinue the use of a slot for
service between Ronald Reagan Washington National Airport and
a large hub airport within the perimeter as described in
section 49109, and operate, in place of such service, service
between Ronald Reagan Washington National Airport and an
airport located beyond the perimeter described in section
49109;
``(C) shall be entitled to return of the slot by the
Secretary if use of the exemption made available to the
carrier under paragraph (1) is discontinued;

[[Page H252]]

``(D) shall have sole discretion concerning the use of an
exemption made available under paragraph (1), including the
initial or any subsequent beyond perimeter destinations to be
served; and
``(E) shall file a notice of intent with the Secretary and
subsequent notices of intent, when appropriate, to inform the
Secretary of any change in circumstances concerning the use
of any exemption made available under paragraph (1).
``(4) Notices of intent.--Notices of intent under paragraph
(3)(E) shall specify the beyond perimeter destination to be
served and the slots the carrier shall discontinue using to
serve a large hub airport located within the perimeter.
``(5) Conditions.--Beyond-perimeter flight operations
carried out by an air carrier using an exemption granted
under this subsection shall be subject to the following
conditions:
``(A) An air carrier may not operate a multi-aisle or
widebody aircraft in conducting such operations.
``(B) An air carrier granted an exemption under this
subsection is prohibited from transferring the rights to its
beyond-perimeter exemptions pursuant to section 41714(j).
``(h) Scheduling Priority.--In administering this section,
the Secretary shall--
``(1) afford a scheduling priority to operations conducted
by new entrant air carriers and limited incumbent air
carriers over operations conducted by other air carriers
granted additional slot exemptions under subsection (g) for
service to airports located beyond the perimeter described in
section 49109;
``(2) afford a scheduling priority to slot exemptions
currently held by new entrant air carriers and limited
incumbent air carriers for service to airports located beyond
the perimeter described in section 49109, to the extent
necessary to protect viability of such service; and
``(3) consider applications from foreign air carriers that
are certificated by the government of Canada if such
consideration is required by the bilateral aviation agreement
between the United States and Canada and so long as the
conditions and limitations under this section apply to such
foreign air carriers.''.
(b) Hourly Limitation.--Section 41718(c)(2) is amended to
read as follows:
``(2) General exemptions.--
``(A) Hourly limitation.--The exemptions granted--
``(i) under subsections (a) and (b) and departures
authorized under subsection (g)(2) may not be for operations
between the hours of 10:00 p.m. and 7:00 a.m.; and
``(ii) under subsections (a), (b), and (g) may not increase
the number of operations at Ronald Reagan Washington National
Airport in any 1-hour period during the hours between 7:00
a.m. and 9:59 p.m. by more than 5 operations.
``(B) Use of existing slots.--A non-limited incumbent air
carrier utilizing an exemption authorized under subsection
(g)(3) for an arrival permitted between the hours of 10:01
p.m. and 11:00 p.m. under this section shall discontinue use
of an existing slot during the same time period the arrival
exemption is operated.''.
(c) Limited Incumbent Definition.--Section 41714(h)(5) is
amended--
(1) in subparagraph (A) by striking ``20'' and inserting
``40'';
(2) by amending subparagraph (B) to read as follows:
``(B) for purposes of such sections, the term `slot' shall
not include--
``(i) `slot exemptions';
``(ii) slots operated by an air carrier under a fee-for-
service arrangement for another air carrier, if the air
carrier operating such slots does not sell flights in its own
name, and is under common ownership with an air carrier that
seeks to qualify as a limited incumbent and that sells
flights in its own name; or
``(iii) slots held under a sale and license-back financing
arrangement with another air carrier, where the slots are
under the marketing control of the other air carrier; and''.
(d) Transfer of Exemptions.--Section 41714(j) is amended by
striking the period at the end and inserting ``, except
through an air carrier merger or acquisition.''.
(e) Definition of Airport Purposes.--Section 49104(a)(2)(A)
is amended--
(1) in clause (ii) by striking ``or'' at the end;
(2) in clause (iii) by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(iv) a business or activity not inconsistent with the
needs of aviation that has been approved by the Secretary.''.

SEC. 415. PASSENGER AIR SERVICE IMPROVEMENTS.

(a) In General.--Subtitle VII is amended by inserting after
chapter 421 the following:

``CHAPTER 423--PASSENGER AIR SERVICE IMPROVEMENTS

``Sec.
``42301. Emergency contingency plans.
``42302. Consumer complaints.
``42303. Use of insecticides in passenger aircraft.

``Sec. 42301. Emergency contingency plans

``(a) Submission of Air Carrier and Airport Plans.--Not
later than 90 days after the date of enactment of this
section, each of the following air carriers and airport
operators shall submit to the Secretary of Transportation for
review and approval an emergency contingency plan in
accordance with the requirements of this section:
``(1) An air carrier providing covered air transportation
at a commercial airport.
``(2) An operator of a commercial airport.
``(3) An operator of an airport used by an air carrier
described in paragraph (1) for diversions.
``(b) Air Carrier Plans.--
``(1) Plans for individual airports.--An air carrier shall
submit an emergency contingency plan under subsection (a)
for--
``(A) each airport at which the carrier provides covered
air transportation; and
``(B) each airport at which the carrier has flights for
which the carrier has primary responsibility for inventory
control.
``(2) Contents.--An emergency contingency plan submitted by
an air carrier for an airport under subsection (a) shall
contain a description of how the carrier will--
``(A) provide adequate food, potable water, restroom
facilities, comfortable cabin temperatures, and access to
medical treatment for passengers onboard an aircraft at the
airport when the departure of a flight is delayed or the
disembarkation of passengers is delayed;
``(B) share facilities and make gates available at the
airport in an emergency; and
``(C) allow passengers to deplane following an excessive
tarmac delay in accordance with paragraph (3).
``(3) Deplaning following an excessive tarmac delay.--For
purposes of paragraph (2)(C), an emergency contingency plan
submitted by an air carrier under subsection (a) shall
incorporate the following requirements:
``(A) A passenger shall have the option to deplane an
aircraft and return to the airport terminal when there is an
excessive tarmac delay.
``(B) The option described in subparagraph (A) shall be
offered to a passenger even if a flight in covered air
transportation is diverted to a commercial airport other than
the originally scheduled airport.
``(C) Notwithstanding the requirements described in
subparagraphs (A) and (B), a passenger shall not have an
option to deplane an aircraft and return to the airport
terminal in the case of an excessive tarmac delay if--
``(i) an air traffic controller with authority over the
aircraft advises the pilot in command that permitting a
passenger to deplane would significantly disrupt airport
operations; or
``(ii) the pilot in command determines that permitting a
passenger to deplane would jeopardize passenger safety or
security.
``(c) Airport Plans.--An emergency contingency plan
submitted by an airport operator under subsection (a) shall
contain a description of how the operator, to the maximum
extent practicable, will--
``(1) provide for the deplanement of passengers following
excessive tarmac delays;
``(2) provide for the sharing of facilities and make gates
available at the airport in an emergency; and
``(3) provide a sterile area following excessive tarmac
delays for passengers who have not yet cleared United States
Customs and Border Protection.
``(d) Updates.--
``(1) Air carriers.--An air carrier shall update each
emergency contingency plan submitted by the carrier under
subsection (a) every 3 years and submit the update to the
Secretary for review and approval.
``(2) Airports.--An airport operator shall update each
emergency contingency plan submitted by the operator under
subsection (a) every 5 years and submit the update to the
Secretary for review and approval.
``(e) Approval.--
``(1) In general.--Not later than 60 days after the date of
the receipt of an emergency contingency plan submitted under
subsection (a) or an update submitted under subsection (d),
the Secretary shall review and approve or, if necessary,
require modifications to the plan or update to ensure that
the plan or update will effectively address emergencies and
provide for the health and safety of passengers.
``(2) Failure to approve or require modifications.--If the
Secretary fails to approve or require modifications to a plan
or update under paragraph (1) within the timeframe specified
in that paragraph, the plan or update shall be deemed to be
approved.
``(3) Adherence required.--An air carrier or airport
operator shall adhere to an emergency contingency plan of the
carrier or operator approved under this section.
``(f) Minimum Standards.--The Secretary shall establish, as
necessary or desirable, minimum standards for elements in an
emergency contingency plan required to be submitted under
this section.
``(g) Public Access.--An air carrier or airport operator
required to submit an emergency contingency plan under this
section shall ensure public access to the plan after its
approval under this section on the Internet Web site of the
carrier or operator or by such other means as determined by
the Secretary.
``(h) Reports.--Not later than 30 days after any flight
experiences an excessive tarmac delay, the air carrier
responsible for such flight shall submit a written
description of the incident and its resolution to the
Aviation Consumer Protection Division of the Department of
Transportation.
``(i) Definitions.--In this section, the following
definitions apply:
``(1) Commercial airport.--The term `commercial airport'
means a large hub, medium hub, small hub, or nonhub airport.
``(2) Covered air transportation.--The term `covered air
transportation' means scheduled or public charter passenger
air transportation provided by an air carrier that operates
an aircraft that as originally designed has a passenger
capacity of 30 or more seats.
``(3) Tarmac delay.--The term `tarmac delay' means the
period during which passengers are on board an aircraft on
the tarmac--
``(A) awaiting takeoff after the aircraft doors have been
closed or after passengers have been boarded if the
passengers have not been advised they are free to deplane; or
``(B) awaiting deplaning after the aircraft has landed.
``(4) Excessive tarmac delay.--The term `excessive tarmac
delay' means a tarmac delay that lasts for a length of time,
as determined by the Secretary.

[[Page H253]]

``Sec. 42302. Consumer complaints

``(a) In General.--The Secretary of Transportation shall
establish a consumer complaints toll-free hotline telephone
number for the use of passengers in air transportation and
shall take actions to notify the public of--
``(1) that telephone number; and
``(2) the Internet Web site of the Aviation Consumer
Protection Division of the Department of Transportation.
``(b) Notice to Passengers on the Internet.--An air carrier
or foreign air carrier providing scheduled air transportation
using any aircraft that as originally designed has a
passenger capacity of 30 or more passenger seats shall
include on the Internet Web site of the carrier--
``(1) the hotline telephone number established under
subsection (a);
``(2) the e-mail address, telephone number, and mailing
address of the air carrier for the submission of complaints
by passengers about air travel service problems; and
``(3) the Internet Web site and mailing address of the
Aviation Consumer Protection Division of the Department of
Transportation for the submission of complaints by passengers
about air travel service problems.
``(c) Notice to Passengers on Boarding Documentation.--An
air carrier or foreign air carrier providing scheduled air
transportation using any aircraft that as originally designed
has a passenger capacity of 30 or more passenger seats shall
include the hotline telephone number established under
subsection (a) on--
``(1) prominently displayed signs of the carrier at the
airport ticket counters in the United States where the air
carrier operates; and
``(2) any electronic confirmation of the purchase of a
passenger ticket for air transportation issued by the air
carrier.

``Sec. 42303. Use of insecticides in passenger aircraft

``(a) Information To Be Provided on the Internet.--The
Secretary of Transportation shall establish, and make
available to the general public, an Internet Web site that
contains a listing of countries that may require an air
carrier or foreign air carrier to treat an aircraft passenger
cabin with insecticides prior to a flight in foreign air
transportation to that country or to apply an aerosol
insecticide in an aircraft cabin used for such a flight when
the cabin is occupied with passengers.
``(b) Required Disclosures.--An air carrier, foreign air
carrier, or ticket agent selling, in the United States, a
ticket for a flight in foreign air transportation to a
country listed on the Internet Web site established under
subsection (a) shall refer the purchaser of the ticket to the
Internet Web site established under subsection (a) for
additional information.''.
(b) Penalties.--Section 46301 is amended in subsections
(a)(1)(A) and (c)(1)(A) by inserting ``chapter 423,'' after
``chapter 421,''.
(c) Applicability of Requirements.--Except as otherwise
provided, the requirements of chapter 423 of title 49, United
States Code, as added by this section, shall begin to apply
60 days after the date of enactment of this Act.
(d) Clerical Amendment.--The analysis for subtitle VII is
amended by inserting after the item relating to chapter 421
the following:

``423. Passenger Air Service Improvements..................42301''.....

Subtitle B--Essential Air Service

SEC. 421. LIMITATION ON ESSENTIAL AIR SERVICE TO LOCATIONS
THAT AVERAGE FEWER THAN 10 ENPLANEMENTS PER
DAY.

Section 41731 is amended--
(1) in subsection (a)(1) by amending subparagraph (B) to
read as follows:
``(B) had an average of 10 enplanements per service day or
more, as determined by the Secretary, during the most recent
fiscal year beginning after September 30, 2012;'';
(2) by amending subsection (c) to read as follows:
``(c) Exception for Locations in Alaska and Hawaii.--
Subparagraphs (B), (C), and (D) of subsection (a)(1) shall
not apply with respect to locations in the State of Alaska or
the State of Hawaii.'';
(3) by amending subsection (d) to read as follows:
``(d) Exceptions for Locations More Than 175 Driving Miles
From the Nearest Large or Medium Hub Airport.--Subsection
(a)(1)(B) shall not apply with respect to locations that are
more than 175 driving miles from the nearest large or medium
hub airport.''; and
(4) by adding at the end the following:
``(e) Waivers.--For fiscal year 2013 and each fiscal year
thereafter, the Secretary may waive, on an annual basis,
subsection (a)(1)(B) with respect to a location if the
location demonstrates to the Secretary's satisfaction that
the reason the location averages fewer than 10 enplanements
per day is due to a temporary decline in enplanements.
``(f) Definition.--For purposes of subsection (a)(1)(B),
the term `enplanements' means the number of passengers
enplaning, at an eligible place, on flights operated by the
subsidized essential air service carrier.''.

SEC. 422. ESSENTIAL AIR SERVICE ELIGIBILITY.

Section 41731(a)(1) is further amended--
(1) in subparagraph (C) by striking the period at the end
and inserting ``; and''; and
(2) by adding at the end the following:
``(D) is a community that, at any time during the period
between September 30, 2010, and September 30, 2011,
inclusive--
``(i) received essential air service for which compensation
was provided to an air carrier under this subchapter; or
``(ii) received a 90-day notice of intent to terminate
essential air service and the Secretary required the air
carrier to continue to provide such service to the
community.''.

SEC. 423. ESSENTIAL AIR SERVICE MARKETING.

Section 41733(c)(1) is amended--
(1) by redesignating subparagraph (E) as subparagraph (F);
(2) by striking ``and'' at the end of subparagraph (D); and
(3) by inserting after subparagraph (D) the following:
``(E) whether the air carrier has included a plan in its
proposal to market its services to the community; and''.

SEC. 424. NOTICE TO COMMUNITIES PRIOR TO TERMINATION OF
ELIGIBILITY FOR SUBSIDIZED ESSENTIAL AIR
SERVICE.

Section 41733 is amended by adding at the end the
following:
``(f) Notice to Communities Prior to Termination of
Eligibility.--
``(1) In general.--The Secretary shall notify each
community receiving basic essential air service for which
compensation is being paid under this subchapter on or before
the 45th day before issuing any final decision to end the
payment of such compensation due to a determination by the
Secretary that providing such service requires a rate of
subsidy per passenger in excess of the subsidy cap.
``(2) Procedures to avoid termination.--The Secretary shall
establish, by order, procedures by which each community
notified of an impending loss of subsidy under paragraph (1)
may work directly with an air carrier to ensure that the air
carrier is able to submit a proposal to the Secretary to
provide essential air service to such community for an amount
of compensation that would not exceed the subsidy cap.
``(3) Assistance provided.--The Secretary shall provide, by
order, information to each community notified under paragraph
(1) regarding--
``(A) the procedures established pursuant to paragraph (2);
and
``(B) the maximum amount of compensation that could be
provided under this subchapter to an air carrier serving such
community that would comply with basic essential air service
and the subsidy cap.''.

SEC. 425. RESTORATION OF ELIGIBILITY TO A PLACE DETERMINED TO
BE INELIGIBLE FOR SUBSIDIZED ESSENTIAL AIR
SERVICE.

Section 41733 is further amended by adding at the end the
following:
``(g) Proposals of State and Local Governments to Restore
Eligibility.--
``(1) In general.--If the Secretary, after the date of
enactment of this subsection, ends payment of compensation to
an air carrier for providing basic essential air service to
an eligible place because the Secretary has determined that
providing such service requires a rate of subsidy per
passenger in excess of the subsidy cap or that the place is
no longer an eligible place pursuant to section
41731(a)(1)(B), a State or local government may submit to the
Secretary a proposal for restoring compensation for such
service. Such proposal shall be a joint proposal of the State
or local government and an air carrier.
``(2) Determination by secretary.--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) if--
``(A) a State or local government submits to the Secretary
a proposal under paragraph (1); and
``(B) the Secretary determines that--
``(i) the rate of subsidy per passenger under the proposal
does not exceed the subsidy cap;
``(ii) the proposal is likely to result in an average
number of enplanements per day that will satisfy the
requirement in section 41731(a)(1)(B); and
``(iii) the proposal is consistent with the legal and
regulatory requirements of the essential air service program.
``(h) Subsidy Cap Defined.--In this section, the term
`subsidy cap' means the subsidy-per-passenger cap established
by section 332 of the Department of Transportation and
Related Agencies Appropriations Act, 2000 (Public Law 106-69;
113 Stat. 1022).''.

SEC. 426. ADJUSTMENTS TO COMPENSATION FOR SIGNIFICANTLY
INCREASED COSTS.

(a) Emergency Across-the-Board Adjustment.--Subject to the
availability of funds, the Secretary may increase the rates
of compensation payable to air carriers under subchapter II
of chapter 417 of title 49, United States Code, to compensate
such carriers for increased aviation fuel costs without
regard to any agreement or requirement relating to the
renegotiation of contracts or any notice requirement under
section 41734 of such title.
(b) Expedited Process for Adjustments to Individual
Contracts.--
(1) In general.--Section 41734(d) is amended by striking
``continue to pay'' and all that follows through
``compensation sufficient--'' and inserting ``provide the
carrier with compensation sufficient--''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to compensation to air carriers for air service
provided after the 30th day following the date of enactment
of this Act.
(c) Subsidy Cap.--Subject to the availability of funds, the
Secretary may waive, on a case-by-case basis, the subsidy-
per-passenger cap established by section 332 of the
Department of Transportation and Related Agencies
Appropriations Act, 2000 (Public Law 106-69; 113 Stat. 1022).
A waiver issued under this subsection shall remain in effect
for a limited period of time, as determined by the Secretary.

SEC. 427. ESSENTIAL AIR SERVICE CONTRACT GUIDELINES.

(a) Compensation Guidelines.--Section 41737(a)(1) is
amended--
(1) by striking ``and'' at the end of subparagraph (B);

[[Page H254]]

(2) in subparagraph (C) by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(D) include provisions under which the Secretary may
encourage an air carrier to improve air service for which
compensation is being paid under this subchapter by
incorporating financial incentives in an essential air
service contract based on specified performance goals,
including goals related to improving on-time performance,
reducing the number of flight cancellations, establishing
reasonable fares (including joint fares beyond the hub
airport), establishing convenient connections to flights
providing service beyond hub airports, and increasing
marketing efforts; and
``(E) include provisions under which the Secretary may
execute a long-term essential air service contract to
encourage an air carrier to provide air service to an
eligible place if it would be in the public interest to do
so.''.
(b) Deadline for Issuance of Revised Guidance.--Not later
than 1 year after the date of enactment of this Act, the
Secretary of Transportation shall issue revised guidelines
governing the rate of compensation payable under subchapter
II of chapter 417 that incorporate the amendments made by
this section.
(c) Update.--Not later than 2 years after the date of
issuance of revised guidelines pursuant to subsection (b),
the Secretary shall submit to the Committee on Transportation
and Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate an update of the extent to which the revised
guidelines have been implemented and the impact, if any, such
implementation has had on air carrier performance and
community satisfaction with air service for which
compensation is being paid under subchapter II of chapter
417.

SEC. 428. ESSENTIAL AIR SERVICE REFORM.

(a) Authorization of Appropriations.--Section 41742(a) is
amended--
(1) in paragraph (1)--
(A) by inserting ``for each fiscal year'' before ``is
authorized''; and
(B) by striking ``under this subchapter for each fiscal
year'' and inserting ``under this subchapter''; and
(2) in paragraph (2) by striking ``and $54,699,454 for the
period beginning on October 1, 2011, and ending on February
17, 2012,'' and inserting ``, $143,000,000 for fiscal year
2012, $118,000,000 for fiscal year 2013, $107,000,000 for
fiscal year 2014, and $93,000,000 for fiscal year 2015''.
(b) Distribution of Additional Funds.--Section 41742(b) is
amended to read as follows:
``(b) Distribution of Additional Funds.--Notwithstanding
any other provision of law, in any fiscal year in which funds
credited to the account established under section 45303,
including the funds derived from fees imposed under the
authority contained in section 45301(a), exceed the
$50,000,000 made available under subsection (a)(1), such
funds shall be made available immediately for obligation and
expenditure to carry out the essential air service program
under this subchapter.''.
(c) Availability of Funds.--Section 41742 is amended by
adding at the end the following:
``(c) Availability of Funds.--The funds made available
under this section shall remain available until expended.''.

SEC. 429. SMALL COMMUNITY AIR SERVICE.

(a) Priorities.--Section 41743(c)(5) is amended--
(1) by striking ``and'' at the end of subparagraph (D);
(2) in subparagraph (E) by striking ``fashion.'' and
inserting ``fashion; and''; and
(3) by adding at the end the following:
``(F) multiple communities cooperate to submit a regional
or multistate application to consolidate air service into one
regional airport.''.
(b) Extension of Authorization.--Section 41743(e)(2) is
amended to read as follows:
``(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary $6,000,000 for each of
fiscal years 2012 through 2015 to carry out this section.
Such sums shall remain available until expended.''.

SEC. 430. REPEAL OF ESSENTIAL AIR SERVICE LOCAL PARTICIPATION
PROGRAM.

Section 41747, and the item relating to section 41747 in
the analysis for chapter 417, are repealed.

SEC. 431. EXTENSION OF FINAL ORDER ESTABLISHING MILEAGE
ADJUSTMENT ELIGIBILITY.

Section 409(d) of the Vision 100--Century of Aviation
Reauthorization Act (49 U.S.C. 41731 note) is amended by
striking ``February 17, 2012.'' and inserting ``September 30,
2015.''.

TITLE V--ENVIRONMENTAL STREAMLINING

SEC. 501. OVERFLIGHTS OF NATIONAL PARKS.

(a) General Requirements.--Section 40128(a)(1)(C) is
amended by inserting ``or voluntary agreement under
subsection (b)(7)'' before ``for the park''.
(b) Exemption for National Parks With 50 or Fewer Flights
Each Year.--Section 40128(a) is amended by adding at the end
the following:
``(5) Exemption for national parks with 50 or fewer flights
each year.--
``(A) In general.--Notwithstanding paragraph (1), a
national park that has 50 or fewer commercial air tour
operations over the park each year shall be exempt from the
requirements of this section, except as provided in
subparagraph (B).
``(B) Withdrawal of exemption.--If the Director determines
that an air tour management plan or voluntary agreement is
necessary to protect park resources and values or park
visitor use and enjoyment, the Director shall withdraw the
exemption of a park under subparagraph (A).
``(C) List of parks.--
``(i) In general.--The Director and Administrator shall
jointly publish a list each year of national parks that are
covered by the exemption provided under this paragraph.
``(ii) Notification of withdrawal of exemption.--The
Director shall inform the Administrator, in writing, of each
determination to withdraw an exemption under subparagraph
(B).
``(D) Annual report.--A commercial air tour operator
conducting commercial air tour operations over a national
park that is exempt from the requirements of this section
shall submit to the Administrator and the Director a report
each year that includes the number of commercial air tour
operations the operator conducted during the preceding 1-year
period over such park.''.
(c) Air Tour Management Plans.--Section 40128(b) is
amended--
(1) in paragraph (1) by adding at the end the following:
``(C) Exception.--An application to begin commercial air
tour operations at Crater Lake National Park may be denied
without the establishment of an air tour management plan by
the Director of the National Park Service if the Director
determines that such operations would adversely affect park
resources or visitor experiences.''; and
(2) by adding at the end the following:
``(7) Voluntary agreements.--
``(A) In general.--As an alternative to an air tour
management plan, the Director and the Administrator may enter
into a voluntary agreement with a commercial air tour
operator (including a new entrant commercial air tour
operator and an operator that has interim operating
authority) that has applied to conduct commercial air tour
operations over a national park to manage commercial air tour
operations over such national park.
``(B) Park protection.--A voluntary agreement under this
paragraph with respect to commercial air tour operations over
a national park shall address the management issues necessary
to protect the resources of such park and visitor use of such
park without compromising aviation safety or the air traffic
control system and may--
``(i) include provisions such as those described in
subparagraphs (B) through (E) of paragraph (3);
``(ii) include provisions to ensure the stability of, and
compliance with, the voluntary agreement; and
``(iii) provide for fees for such operations.
``(C) Public review.--The Director and the Administrator
shall provide an opportunity for public review of a proposed
voluntary agreement under this paragraph and shall consult
with any Indian tribe whose tribal lands are, or may be,
flown over by a commercial air tour operator under a
voluntary agreement under this paragraph. After such
opportunity for public review and consultation, the voluntary
agreement may be implemented without further administrative
or environmental process beyond that described in this
subsection.
``(D) Termination.--
``(i) In general.--A voluntary agreement under this
paragraph may be terminated at any time at the discretion
of--

``(I) the Director, if the Director determines that the
agreement is not adequately protecting park resources or
visitor experiences; or
``(II) the Administrator, if the Administrator determines
that the agreement is adversely affecting aviation safety or
the national aviation system.

``(ii) Effect of termination.--If a voluntary agreement
with respect to a national park is terminated under this
subparagraph, the operators shall conform to the requirements
for interim operating authority under subsection (c) until an
air tour management plan for the park is in effect.''.
(d) Interim Operating Authority.--Section 40128(c) is
amended--
(1) by striking paragraph (2)(I) and inserting the
following:
``(I) may allow for modifications of the interim operating
authority without further environmental review beyond that
described in this subsection, if--
``(i) adequate information regarding the existing and
proposed operations of the operator under the interim
operating authority is provided to the Administrator and the
Director;
``(ii) the Administrator determines that there would be no
adverse impact on aviation safety or the air traffic control
system; and
``(iii) the Director agrees with the modification, based on
the professional expertise of the Director regarding the
protection of the resources, values, and visitor use and
enjoyment of the park.''; and
(2) in paragraph (3)(A) by striking ``if the Administrator
determines'' and all that follows through the period at the
end and inserting ``without further environmental process
beyond that described in this paragraph, if--
``(i) adequate information on the proposed operations of
the operator is provided to the Administrator and the
Director by the operator making the request;
``(ii) the Administrator agrees that there would be no
adverse impact on aviation safety or the air traffic control
system; and
``(iii) the Director agrees, based on the Director's
professional expertise regarding the protection of park
resources and values and visitor use and enjoyment.''.
(e) Operator Reports.--Section 40128 is amended--
(1) by redesignating subsections (d), (e), and (f) as
subsections (e), (f), and (g), respectively; and
(2) by inserting after subsection (c) the following:
``(d) Commercial Air Tour Operator Reports.--

[[Page H255]]

``(1) Report.--Each commercial air tour operator conducting
a commercial air tour operation over a national park under
interim operating authority granted under subsection (c) or
in accordance with an air tour management plan or voluntary
agreement under subsection (b) shall submit to the
Administrator and the Director a report regarding the number
of commercial air tour operations over each national park
that are conducted by the operator and such other information
as the Administrator and Director may request in order to
facilitate administering the provisions of this section.
``(2) Report submission.--Not later than 90 days after the
date of enactment of the FAA Modernization and Reform Act of
2012, the Administrator and the Director shall jointly issue
an initial request for reports under this subsection. The
reports shall be submitted to the Administrator and the
Director with a frequency and in a format prescribed by the
Administrator and the Director.''.

SEC. 502. STATE BLOCK GRANT PROGRAM.

(a) General Requirements.--Section 47128(a) is amended--
(1) in the first sentence by striking ``prescribe
regulations'' and inserting ``issue guidance''; and
(2) in the second sentence by striking ``regulations'' and
inserting ``guidance''.
(b) Applications and Selection.--Section 47128(b)(4) is
amended by inserting before the semicolon the following: ``,
including the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.), State and local environmental policy
acts, Executive orders, agency regulations and guidance, and
other Federal environmental requirements''.
(c) Environmental Analysis and Coordination Requirements.--
Section 47128 is amended by adding at the end the following:
``(d) Environmental Analysis and Coordination
Requirements.--A Federal agency, other than the Federal
Aviation Administration, that is responsible for issuing an
approval, license, or permit to ensure compliance with a
Federal environmental requirement applicable to a project or
activity to be carried out by a State using amounts from a
block grant made under this section shall--
``(1) coordinate and consult with the State;
``(2) use the environmental analysis prepared by the State
for the project or activity if such analysis is adequate; and
``(3) as necessary, consult with the State to describe the
supplemental analysis the State must provide to meet
applicable Federal requirements.''.

SEC. 503. AIRPORT FUNDING OF SPECIAL STUDIES OR REVIEWS.

Section 47173(a) is amended by striking ``services of
consultants in order to'' and all that follows through the
period at the end and inserting ``services of consultants--
``(1) to facilitate the timely processing, review, and
completion of environmental activities associated with an
airport development project;
``(2) to conduct special environmental studies related to
an airport project funded with Federal funds;
``(3) to conduct special studies or reviews to support
approved noise compatibility measures described in part 150
of title 14, Code of Federal Regulations;
``(4) to conduct special studies or reviews to support
environmental mitigation in a record of decision or finding
of no significant impact by the Federal Aviation
Administration; and
``(5) to facilitate the timely processing, review, and
completion of environmental activities associated with new or
amended flight procedures, including performance-based
navigation procedures, such as required navigation
performance procedures and area navigation procedures.''.

SEC. 504. 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) In general.--In accordance with subsection (c)(1),
the Secretary may make a grant to an airport operator to
assist in completing environmental review and assessment
activities for proposals to implement flight procedures at
such airport that have been approved as part of an airport
noise compatibility program under subsection (b).
``(2) Additional staff.--The Administrator may accept funds
from an airport operator, including funds provided to the
operator 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 at such airport that have been approved as part of
an airport noise compatibility program under subsection (b).
``(3) Receipts credited as offsetting collections.--
Notwithstanding section 3302 of title 31, any funds accepted
under this section--
``(A) shall be credited as offsetting collections to the
account that finances the activities and services for which
the funds are accepted;
``(B) shall be available for expenditure only to pay the
costs of activities and services for which the funds are
accepted; and
``(C) shall remain available until expended.''.

SEC. 505. DETERMINATION OF FAIR MARKET VALUE OF RESIDENTIAL
PROPERTIES.

Section 47504 (as amended by this Act) is further amended
by adding at the end the following:
``(f) Determination of Fair Market Value of Residential
Properties.--In approving a project to acquire residential
real property using financial assistance made available under
this section or chapter 471, the Secretary shall ensure that
the appraisal of the property to be acquired disregards any
decrease or increase in the fair market value of the real
property caused by the project for which the property is to
be acquired, or by the likelihood that the property would be
acquired for the project, other than that due to physical
deterioration within the reasonable control of the owner.''.

SEC. 506. PROHIBITION ON OPERATING CERTAIN AIRCRAFT WEIGHING
75,000 POUNDS OR LESS NOT COMPLYING WITH STAGE
3 NOISE LEVELS.

(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 otherwise provided by this
section, after December 31, 2015, a person may not operate a
civil subsonic jet airplane with a maximum weight of 75,000
pounds or less, and for which an airworthiness certificate
(other than an experimental certificate) has been issued, 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) Aircraft Operations Outside 48 Contiguous States.--
Subsection (a) shall not apply to aircraft operated only
outside the 48 contiguous States.
``(c) Temporary Operations.--The Secretary may allow
temporary operation of an aircraft otherwise prohibited from
operation under subsection (a) to or from an airport in the
contiguous United States by granting a special flight
authorization for one or more of the following circumstances:
``(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, park, or store the aircraft in
anticipation of any of the activities described in paragraphs
(1) through (5).
``(7) To provide transport of persons and goods in the
relief of an emergency situation.
``(8) 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 (7).
``(d) Regulations.--The Secretary may prescribe such
regulations or other guidance as may be necessary for the
implementation of this section.
``(e) Statutory Construction.--
``(1) AIP grant assurances.--Noncompliance with subsection
(a) shall not be construed as a violation of section 47107 or
any regulations prescribed thereunder.
``(2) Pending applications.--Nothing in this 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 this section.''.
(b) Conforming Amendments.--
(1) Penalties.--Section 47531 is amended--
(A) in the section heading by striking ``for violating
sections 47528-47530''; and
(B) by striking ``47529, or 47530'' and inserting ``47529,
47530, or 47534''.
(2) Judicial review.--Section 47532 is amended by inserting
``or 47534'' after ``47528-47531''.
(3) Analysis.--The analysis for subchapter II of chapter
475 is amended--
(A) by striking the item relating to section 47531 and
inserting the following:

``47531. Penalties.''; and
(B) by adding at the end the following:

``47534. Prohibition on operating certain aircraft weighing 75,000
pounds or less not complying with stage 3 noise
levels.''.

SEC. 507. AIRCRAFT DEPARTURE QUEUE MANAGEMENT PILOT PROGRAM.

(a) In General.--The Secretary of Transportation shall
carry out a pilot program at not more than 5 public-use
airports under which the Federal Aviation Administration
shall use funds made available under section 48101(a) to test
air traffic flow management tools, methodologies, and
procedures that will allow air traffic controllers of the
Administration to better manage the flow of aircraft on the
ground and reduce the length of ground holds and idling time
for aircraft.
(b) Selection Criteria.--In selecting from among airports
at which to conduct the pilot program, the Secretary shall
give priority consideration to airports at which improvements
in ground control efficiencies are likely to achieve the
greatest fuel savings or air quality or other environmental
benefits, as measured by the amount of reduced fuel, reduced
emissions, or other environmental benefits per dollar of
funds expended under the pilot program.
(c) Maximum Amount.--Not more than a total of $2,500,000
may be expended under the pilot program at any single public-
use airport.

SEC. 508. HIGH PERFORMANCE, SUSTAINABLE, AND COST-EFFECTIVE
AIR TRAFFIC CONTROL FACILITIES.

The Administrator of the Federal Aviation Administration
may implement, to the extent practicable, sustainable
practices for the incorporation of energy-efficient design,
equipment, systems, and other measures in the construction
and major renovation of air traffic control facilities of the
Administration in order to reduce

[[Page H256]]

energy consumption at, improve the environmental performance
of, and reduce the cost of maintenance for such facilities.

SEC. 509. SENSE OF CONGRESS.

It is the sense of Congress that--
(1) the European Union directive extending the European
Union's emissions trading proposal to international civil
aviation without working through the International Civil
Aviation Organization (in this section referred to as the
``ICAO'') in a consensus-based fashion is inconsistent with
the Convention on International Civil Aviation, completed in
Chicago on December 7, 1944 (TIAS 1591; commonly known as the
``Chicago Convention''), and other relevant air services
agreements and antithetical to building international
cooperation to address effectively the problem of greenhouse
gas emissions by aircraft engaged in international civil
aviation;
(2) the European Union and its member states should instead
work with other contracting states of ICAO to develop a
consensual approach to addressing aircraft greenhouse gas
emissions through ICAO; and
(3) officials of the United States Government, and
particularly the Secretary of Transportation and the
Administrator of the Federal Aviation Administration, should
use all political, diplomatic, and legal tools at the
disposal of the United States to ensure that the European
Union's emissions trading scheme is not applied to aircraft
registered by the United States or the operators of those
aircraft, including the mandates that United States carriers
provide emissions data to and purchase emissions allowances
from or surrender emissions allowances to the European Union
Member States.

SEC. 510. AVIATION NOISE COMPLAINTS.

Not later than 90 days after the date of enactment of this
Act, each owner or operator of a large hub airport (as
defined in section 40102(a) of title 49, United States Code)
shall publish on an Internet Web site of the airport a
telephone number to receive aviation noise complaints related
to the airport.

SEC. 511. PILOT PROGRAM FOR ZERO-EMISSION AIRPORT VEHICLES.

(a) In General.--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 may
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 airport to carry out
activities associated with the acquisition and operation of
zero-emission vehicles (as defined in section 88.102-94 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.
``(b) Location in Air Quality Nonattainment Areas.--
``(1) In general.--A public-use airport may be eligible for
participation in the program only if the airport is located
in a nonattainment area (as defined in section 171 of the
Clean Air Act (42 U.S.C. 7501)).
``(2) Shortage of applicants.--If the Secretary receives an
insufficient number of applications from public-use airports
located in such areas, the Secretary may permit public-use
airports that are not located in such areas to participate in
the program.
``(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) Use of university transportation center.--
Participants in the program may use a university
transportation center receiving grants under section 5506 in
the region of the airport to receive the 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 Act, the Secretary
of Transportation shall submit to the Committee on Science,
Space, and Technology and the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate a report containing--
(1) an evaluation of the effectiveness of the program
established by section 47136a of title 49, United States Code
(as added by this section);
(2) the performance measures used to measure such
effectiveness, such as the goals for the projects implemented
and the amount of emissions reduction achieved through these
projects;
(3) an assessment of the sufficiency of the data collected
during the program to make a decision on whether or not to
implement the program;
(4) an identification of all public-use airports that
expressed an interest in participating in the program; and
(5) a description of the mechanisms used by the Secretary
to ensure that the information and expertise 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 analysis for such chapter is
amended by inserting after the item relating to section 47136
the following:

``47136a. Zero-emission airport vehicles and infrastructure.''.
(d) Technical Amendment.--Section 47136(f)(2) is amended--
(1) in the paragraph heading by striking ``Eligible
consortium'' and inserting ``University transportation
center''; and
(2) by striking ``an eligible consortium'' and inserting
``a university transportation center''.

SEC. 512. INCREASING THE ENERGY EFFICIENCY OF AIRPORT POWER
SOURCES.

(a) In General.--Chapter 471 is amended by inserting after
section 47140 the following:

``Sec. 47140a. Increasing the energy efficiency of airport
power sources

``(a) In General.--The Secretary of Transportation shall
establish a program under which the Secretary shall encourage
the sponsor of each public-use airport 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 increase energy efficiency at the airport.
``(b) Grants.--
``(1) In general.--The Secretary may make grants from
amounts made available 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
increase energy efficiency at the airport.
``(2) Application.--To be eligible for a grant under
paragraph (1), the sponsor of a public-use 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 analysis for such chapter is
amended by inserting after the item relating to section 47140
the following:

``47140a. Increasing the energy efficiency of airport power sources.''.

TITLE VI--FAA EMPLOYEES AND ORGANIZATION

SEC. 601. FEDERAL AVIATION ADMINISTRATION PERSONNEL
MANAGEMENT SYSTEM.

Section 40122(a) is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by striking paragraph (2) and inserting the following:
``(2) Dispute resolution.--
``(A) Mediation.--If the Administrator does not reach an
agreement under paragraph (1) or the provisions referred to
in subsection (g)(2)(C) with the exclusive bargaining
representative of the employees, the Administrator and the
bargaining representative--
``(i) shall use the services of the Federal Mediation and
Conciliation Service to attempt to reach such agreement in
accordance with part 1425 of title 29, Code of Federal
Regulations (as in effect on the date of enactment of the FAA
Modernization and Reform Act of 2012); or
``(ii) may by mutual agreement adopt alternative procedures
for the resolution of disputes or impasses arising in the
negotiation of the collective-bargaining agreement.
``(B) Mid-term bargaining.--If the services of the Federal
Mediation and Conciliation Service under subparagraph (A)(i)
do not lead to the resolution of issues in controversy
arising from the negotiation of a mid-term collective-
bargaining agreement, the Federal Service Impasses Panel
shall assist the parties in resolving the impasse in
accordance with section 7119 of title 5.
``(C) Binding arbitration for term bargaining.--
``(i) Assistance from federal service impasses panel.--If
the services of the Federal Mediation and Conciliation
Service under subparagraph (A)(i) do not lead to the
resolution of issues in controversy arising from the
negotiation of a term collective-bargaining agreement, the
Administrator and the exclusive bargaining representative of
the employees (in this subparagraph referred to as the
`parties') shall submit their issues in controversy to the
Federal Service Impasses Panel. 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.
``(ii) Appointment of arbitration board.--The Executive
Director of the Panel shall provide for the appointment of
the 3 members of a private arbitration board under clause (i)
by requesting the Director of the Federal Mediation and
Conciliation Service to prepare a list of not less than 15
names of arbitrators with Federal sector experience and by
providing the list to the parties. Not later than 10 days
after receiving the list, the parties shall each select one
person from the list. The 2 arbitrators selected by the
parties shall then select a third person from the list not
later than 7 days after being selected. If either of the
parties fails to select a person or if the 2 arbitrators are
unable to agree on the third person in 7 days, the parties
shall make the selection by alternately striking names on the
list until one arbitrator remains.
``(iii) Framing issues in controversy.--If the parties do
not agree on the framing of the issues to be submitted for
arbitration, the arbitration board shall frame the issues.
``(iv) Hearings.--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.

[[Page H257]]

``(v) Decisions.--The arbitration board shall render its
decision within 90 days after the date of its appointment.
Decisions of the arbitration board shall be conclusive and
binding upon the parties.
``(vi) Matters for consideration.--The arbitration board
shall take into consideration such factors as--

``(I) the effect of its arbitration decisions on the
Federal Aviation Administration's ability to attract and
retain a qualified workforce;
``(II) the effect of its arbitration decisions on the
Federal Aviation Administration's budget; and
``(III) any other factors whose consideration would assist
the board in fashioning a fair and equitable award.

``(vii) Costs.--The parties shall share costs of the
arbitration equally.
``(3) Ratification of agreements.--Upon reaching a
voluntary agreement or at the conclusion of the binding
arbitration under paragraph (2)(C), the final agreement,
except for those matters decided by an arbitration board,
shall be subject to ratification by the exclusive bargaining
representative of the employees, if so requested by the
bargaining representative, and the final agreement shall be
subject to approval by the head of the agency in accordance
with the provisions referred to in subsection (g)(2)(C).''.

SEC. 602. PRESIDENTIAL RANK AWARD PROGRAM.

Section 40122(g)(2) is amended--
(1) in subparagraph (G) by striking ``and'' after the
semicolon;
(2) in subparagraph (H) by striking ``Board.'' and
inserting ``Board; and''; and
(3) by adding at the end the following:
``(I) subsections (b), (c), and (d) of section 4507
(relating to Meritorious Executive or Distinguished Executive
rank awards) and 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 a Federal Aviation
Administration executive;
``(III) the term `career appointee' means a Federal
Aviation Administration career executive; and
``(IV) the term `senior career employee' means a Federal
Aviation Administration career senior professional;

``(ii) receipt by a career appointee or a senior career
employee of the rank of Meritorious Executive or Meritorious
Senior Professional entitles the 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 or a senior career
employee 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. 603. COLLEGIATE TRAINING INITIATIVE STUDY.

(a) Study.--The Comptroller General of the United States
shall conduct a study on training options for graduates of
the Collegiate Training Initiative program (in this section
referred to as ``CTI'' programs) conducted under section
44506(c) of title 49, United States Code.
(b) Contents.--The study shall analyze the impact of
providing as an alternative to the current training provided
at the Mike Monroney Aeronautical Center of the Federal
Aviation Administration a new air traffic controller
orientation session at such Center for graduates of CTI
programs followed by on-the-job training for such new air
traffic controllers who are graduates of CTI programs and
shall include an analysis of--
(1) the cost effectiveness of such an alternative training
approach; and
(2) the effect that such an alternative training approach
would have on the overall quality of training received by
graduates of CTI programs.
(c) Report.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General shall submit
to 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
results of the study.

SEC. 604. FRONTLINE MANAGER STAFFING.

(a) Study.--Not later than 45 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall commission an independent study
on frontline manager staffing requirements in air traffic
control facilities.
(b) Considerations.--In conducting the study, the
Administrator may take into consideration--
(1) the managerial tasks expected to be performed by
frontline managers, including employee development,
management, and counseling;
(2) the number of supervisory positions of operation
requiring watch coverage in each air traffic control
facility;
(3) coverage requirements in relation to traffic demand;
(4) facility type;
(5) complexity of traffic and managerial responsibilities;
(6) proficiency and training requirements; and
(7) such other factors as the Administrator considers
appropriate.
(c) Participation.--The Administrator shall ensure the
participation of frontline managers who currently work in
safety-related operational areas of the Administration.
(d) Determinations.--The Administrator shall transmit any
determinations made as a result of the study to the heads of
the appropriate lines of business within the Administration,
including the Chief Operating Officer of the Air Traffic
Organization.
(e) Report.--Not later than 9 months after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
of the House of Representatives a report on the results of
the study and a description of any determinations submitted
to the Chief Operating Officer under subsection (d).
(f) Definition.--In this section, the term ``frontline
manager'' means first-level, operational supervisors and
managers who work in safety-related operational areas of the
Administration.

SEC. 605. FAA TECHNICAL TRAINING AND STAFFING.

(a) Study.--
(1) In general.--The Administrator of the Federal Aviation
Administration shall conduct a study to assess the adequacy
of the Administrator's technical training strategy and
improvement plan for airway transportation systems
specialists (in this section referred to as ``FAA systems
specialists'').
(2) Contents.--The study shall include--
(A) a review of the current technical training strategy and
improvement plan for FAA systems specialists;
(B) recommendations to improve the technical training
strategy and improvement plan needed by FAA systems
specialists to be proficient in the maintenance of the latest
technologies;
(C) a description of actions that the Administration has
undertaken to ensure that FAA systems specialists receive up-
to-date training on the latest technologies; and
(D) a recommendation regarding the most cost-effective
approach to provide training to FAA systems specialists.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to 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 results of
the study.
(b) Workload of Systems Specialists.--
(1) Study by national academy of sciences.--Not later than
90 days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration shall
make appropriate arrangements for 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 FAA systems specialists to ensure proper
maintenance and certification of the national airspace
system.
(2) Consultation.--In conducting the study, the National
Academy of Sciences shall--
(A) consult with the exclusive bargaining representative
certified under section 7111 of title 5, United States Code;
and
(B) include recommendations for objective staffing
standards that maintain the safety of the national airspace
system.
(3) Report.--Not later than 1 year after the initiation of
the arrangements under paragraph (1), the National Academy of
Sciences shall submit to Congress a report on the results of
the study.

SEC. 606. SAFETY CRITICAL STAFFING.

(a) In General.--Not later than October 1, 2012, the
Administrator of the Federal Aviation Administration shall
implement, in as cost-effective a manner as possible, the
staffing model for aviation safety inspectors developed
pursuant to the National Academy of Sciences study entitled
``Staffing Standards for Aviation Safety Inspectors''. In
doing so, the Administrator shall consult with interested
persons, including the exclusive bargaining representative
for aviation safety inspectors certified under section 7111
of title 5, United States Code.
(b) Report.--Not later than January 1 of each year
beginning after September 30, 2012, the Administrator shall
submit to the Committee on Transportation and Infrastructure
of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate, the
staffing model described in subsection (a).

SEC. 607. AIR TRAFFIC CONTROL SPECIALIST QUALIFICATION
TRAINING.

Section 44506 is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Air Traffic Control Specialist Qualification
Training.--
``(1) Appointment of air traffic control specialists.--The
Administrator is authorized to appoint a qualified air
traffic control specialist candidate for placement in an
airport traffic control facility if the candidate has--
``(A) received a control tower operator certification
(referred to in this subsection as a `CTO' certificate); and
``(B) satisfied all other applicable qualification
requirements for an air traffic control specialist position,
including successful completion of orientation training at
the Federal Aviation Administration Academy.
``(2) Compensation and benefits.--An individual appointed
under paragraph (1) shall receive the same compensation and
benefits, and be treated in the same manner as, any other
individual appointed as a developmental air traffic
controller.
``(3) Report.--Not later than 2 years after the date of
enactment of the FAA Modernization and Reform Act of 2012,
the Administrator shall

[[Page H258]]

submit to Congress a report that evaluates the effectiveness
of the air traffic control specialist qualification training
provided pursuant to this section, including the graduation
rates of candidates who received a CTO certificate and are
working in airport traffic control facilities.
``(4) Additional appointments.--If the Administrator
determines that air traffic control specialists appointed
pursuant to this subsection are more successful in carrying
out the duties of an air traffic controller than air traffic
control specialists hired from the general public without any
such certification, the Administrator shall increase, to the
maximum extent practicable, the number of appointments of
candidates who possess such certification.
``(5) Reimbursement for travel expenses associated with
certifications.--
``(A) In general.--Subject to subparagraph (B), the
Administrator may accept reimbursement from an educational
entity that provides training to an air traffic control
specialist candidate to cover reasonable travel expenses of
the Administrator associated with issuing certifications to
such candidates.
``(B) Treatment of reimbursements.--Notwithstanding section
3302 of title 31, any reimbursement authorized to be
collected under subparagraph (A) shall--
``(i) be credited as offsetting collections to the account
that finances the activities and services for which the
reimbursement is accepted;
``(ii) be available for expenditure only to pay the costs
of activities and services for which the reimbursement is
accepted, including all costs associated with collecting such
reimbursement; and
``(iii) remain available until expended.''.

SEC. 608. FAA AIR TRAFFIC CONTROLLER STAFFING.

(a) Study by National Academy of Sciences.--Not later than
90 days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration shall
enter into appropriate arrangements with the National Academy
of Sciences to conduct a study of the air traffic controller
standards used by the Federal Aviation Administration (in
this section referred to as the ``FAA'') to estimate staffing
needs for FAA air traffic controllers to ensure the safe
operation of the national airspace system in the most cost
effective manner.
(b) Consultation.--In conducting the study, the National
Academy of Sciences shall consult with the exclusive
bargaining representative of employees of the FAA certified
under section 7111 of title 5, United States Code, and other
interested parties, including Government and industry
representatives.
(c) Contents.--The study shall include--
(1) an examination of representative information on
productivity, human factors, traffic activity, and improved
technology and equipment used in air traffic control;
(2) an examination of recent National Academy of Sciences
reviews of the complexity model performed by MITRE
Corporation that support the staffing standards models for
the en route air traffic control environment; and
(3) consideration of the Administration's current and
estimated budgets and the most cost-effective staffing model
to best leverage available funding.
(d) Report.--Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall
submit to 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 results of the study.

SEC. 609. AIR TRAFFIC CONTROLLER TRAINING AND SCHEDULING.

(a) Training Strategy and Improvement Plan.--The
Administrator of the Federal Aviation Administration shall
conduct a study to assess the adequacy of training programs
for air traffic controllers, including the Administrator's
technical training strategy and improvement plan for air
traffic controllers.
(1) Contents.--The study shall include--
(A) a review of the current training system for air traffic
controllers, including the technical training strategy and
improvement plan;
(B) an analysis of the competencies required of air traffic
controllers for successful performance in the current and
future projected air traffic control environment;
(C) an analysis of the competencies projected to be
required of air traffic controllers as the Federal Aviation
Administration transitions to the Next Generation Air
Transportation System;
(D) an analysis of various training approaches available to
satisfy the air traffic controller competencies identified
under subparagraphs (B) and (C);
(E) recommendations to improve the current training system
for air traffic controllers, including the technical training
strategy and improvement plan; and
(F) the most cost-effective approach to provide training to
air traffic controllers.
(2) Report.--Not later than 270 days after the date of
enactment of this Act, the Administrator shall submit to 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 results of
the study.
(b) Facility Training Program.--Not later than 1 year after
the date of enactment of this Act, the Administrator shall
conduct a comprehensive review and evaluation of its Academy
and facility training efforts. 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 air traffic 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.
(c) Air Traffic Controller Scheduling.--Not later than 60
days after the date of enactment of this Act, the Inspector
General of the Department of Transportation shall conduct an
assessment of the Federal Aviation Administration's air
traffic controller scheduling practices.
(1) Contents.--The assessment shall include, at a minimum--
(A) an analysis of how air traffic controller schedules are
determined;
(B) an evaluation of how safety is taken into consideration
when schedules are being developed and adopted;
(C) an evaluation of scheduling practices that are cost
effective to the Government;
(D) an examination of how scheduling practices impact air
traffic controller performance; and
(E) any recommendations the Inspector General may have
related to air traffic controller scheduling practices.
(2) Report.--Not later than 120 days after the date of
enactment of this Act, the Inspector General shall submit to
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
results of the assessment conducted under this subsection.

SEC. 610. FAA FACILITY CONDITIONS.

(a) Study.--The Comptroller General of the United States
shall conduct a study of and review--
(1) the conditions of a sampling of Federal Aviation
Administration facilities across the United States, including
offices, towers, centers, and terminal radar air control;
(2) 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;
(3) conditions of such facilities that could interfere with
such employees' ability to effectively and safely perform
their duties;
(4) the ability of managers and supervisors of such
employees to promptly document and seek remediation for
unsafe facility conditions;
(5) whether employees of the Administration who report
facility-related illnesses are treated appropriately;
(6) utilization of scientifically approved remediation
techniques to mitigate hazardous conditions in accordance
with applicable State and local regulations and Occupational
Safety and Health Administration practices by the
Administration; and
(7) resources allocated to facility maintenance and
renovation by the Administration.
(b) Facility Condition Indices.--The Comptroller General
shall review the facility condition indices of the
Administration for inclusion in the recommendations under
subsection (c).
(c) Recommendations.--Based on the results of the study and
review of facility condition indices under subsection (a),
the Comptroller General shall make such recommendations as
the Comptroller General considers necessary--
(1) to prioritize those facilities needing the most
immediate attention based on risks to employee health and
safety;
(2) to ensure that the Administration is using
scientifically approved remediation techniques in all
facilities; and
(3) to assist the Administration in making programmatic
changes so that aging facilities do not deteriorate to unsafe
levels.
(d) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall submit
to the Administrator, the Committee on Commerce, Science, and
Transportation of the Senate, and the Committee on
Transportation and Infrastructure of the House of
Representatives a report on results of the study, including
the recommendations under subsection (c).

SEC. 611. TECHNICAL CORRECTION.

Section 40122(g)(3) is amended by adding at the end the
following: ``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.''.

TITLE VII--AVIATION INSURANCE

SEC. 701. GENERAL AUTHORITY.

Section 44302(f)(1) is amended by striking ``shall extend
through'' and all that follows through ``the termination
date'' and inserting ``shall extend through September 30,
2013, and may extend through December 31, 2013, the
termination date''.

SEC. 702. EXTENSION OF AUTHORITY TO LIMIT THIRD-PARTY
LIABILITY OF AIR CARRIERS ARISING OUT OF ACTS
OF TERRORISM.

The first sentence of section 44303(b) is amended by
striking ``ending on'' and all that follows through ``the
Secretary may certify'' and inserting ``ending on December
31, 2013, the Secretary may certify''.

SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY.

The second sentence of section 44304 is amended by striking
``the carrier'' and inserting ``any insurance carrier''.

SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS.

The second sentence of section 44308(c)(1) is amended by
striking ``agent'' and inserting ``agent, or a claims
adjuster who is independent of the underwriting agent,''.

[[Page H259]]

TITLE VIII--MISCELLANEOUS

SEC. 801. DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST
OF NATIONAL SECURITY.

Section 40119(b) is amended by adding at the end the
following:
``(4) Section 552a of title 5 shall not apply to
disclosures that the Administrator may make from the systems
of records of the Administration to any Federal law
enforcement, intelligence, protective service, immigration,
or national security official in order to assist the official
receiving the information in the performance of official
duties.''.

SEC. 802. FAA AUTHORITY TO CONDUCT CRIMINAL HISTORY RECORD
CHECKS.

(a) In General.--Chapter 401 is amended by adding at the
end the following:

``Sec. 40130. FAA authority to conduct criminal history
record checks

``(a) Criminal History Background Checks.--
``(1) Access to information.--The Administrator of the
Federal Aviation Administration, for certification purposes
of the Administration only, is authorized--
``(A) to conduct, in accordance with the established
request process, a criminal history background check of an
airman in the criminal repositories of the Federal Bureau of
Investigation and States by submitting positive
identification of the airman to a fingerprint-based
repository in compliance with section 217 of the National
Crime Prevention and Privacy Compact Act of 1998 (42 U.S.C.
14616); and
``(B) to receive relevant criminal history record
information regarding the airman checked.
``(2) Release of information.--In accessing a repository
referred to in paragraph (1), the Administrator shall be
subject to the conditions and procedures established by the
Department of Justice or the State, as appropriate, for other
governmental agencies conducting background checks for
noncriminal justice purposes.
``(3) Limitation.--The Administrator may not use the
authority under paragraph (1) to conduct criminal
investigations.
``(4) Reimbursement.--The Administrator may collect
reimbursement to process the fingerprint-based checks under
this subsection, to be used for expenses incurred, including
Federal Bureau of Investigation fees, in providing these
services.
``(b) Designated Employees.--The Administrator shall
designate, by order, employees of the Administration who may
carry out the authority described in subsection (a).''.
(b) Clerical Amendment.--The analysis for chapter 401 is
amended by adding at the end the following:

``40130. FAA authority to conduct criminal history record checks.''.

SEC. 803. CIVIL PENALTIES TECHNICAL AMENDMENTS.

Section 46301 of title 49, United States Code, is amended--
(1) in subsection (a)(1)(A) by inserting ``chapter 451,''
before ``section 47107(b)'';
(2) in subsection (a)(5)(A)(i)--
(A) by striking ``or chapter 449'' and inserting ``chapter
449''; and
(B) by inserting after ``44909)'' the following: ``, or
chapter 451'';
(3) in subsection (d)(2)--
(A) in the first sentence--
(i) by striking ``44723) or'' and inserting the following:
``44723), chapter 451,'';
(ii) by striking ``46302'' and inserting ``section 46302'';
and
(iii) by striking ``46318, or 47107(b)'' and inserting
``section 46318, section 46319, or section 47107(b)''; and
(B) in the second sentence--
(i) by striking ``46302'' and inserting ``section 46302'';
(ii) by striking ``46303,'' and inserting ``or section
46303 of this title''; and
(iii) by striking ``such chapter 449'' and inserting ``any
of those provisions''; and
(4) in subsection (f)(1)(A)(i)--
(A) by striking ``or chapter 449'' and inserting ``chapter
449''; and
(B) by inserting after ``44909)'' the following: ``, or
chapter 451''.

SEC. 804. CONSOLIDATION AND REALIGNMENT OF FAA SERVICES AND
FACILITIES.

(a) National Facilities Realignment and Consolidation
Report.--
(1) In general.--The Administrator of the Federal Aviation
Administration shall develop a report, to be known as the
National Facilities Realignment and Consolidation Report, in
accordance with the requirements of this subsection.
(2) Purpose.--The purpose of the report shall be--
(A) to support the transition to the Next Generation Air
Transportation System; and
(B) to reduce capital, operating, maintenance, and
administrative costs of the FAA where such cost reductions
can be implemented without adversely affecting safety.
(3) Contents.--The report shall include--
(A) recommendations of the Administrator on realignment and
consolidation of services and facilities (including regional
offices) of the FAA; and
(B) for each of the recommendations, a description of--
(i) the Administrator's justification;
(ii) the projected costs and savings; and
(iii) the proposed timing for implementation.
(4) Input.--The report shall be developed by the
Administrator (or the Administrator's designee)--
(A) in coordination with the Chief NextGen Officer and the
Chief Operating Officer of the Air Traffic Organization of
the FAA; and
(B) with the participation of--
(i) representatives of labor organizations representing
operations and maintenance employees of the air traffic
control system; and
(ii) industry stakeholders.
(5) Submission to congress.--Not later than 120 days after
the date of enactment of this Act, the Administrator shall
submit the report to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate.
(6) Public notice and comment.--The Administrator shall
publish the report in the Federal Register and allow 45 days
for the submission of public comments.
(b) Report to Congress Containing Recommendations of
Administrator.--Not later than 60 days after the last day of
the period for public comment under subsection (a)(6), the
Administrator shall submit to the committees specified in
subsection (a)(5)--
(1) a report containing the recommendations of the
Administrator on realignment and consolidation of services
and facilities (including regional offices) of the FAA; and
(2) copies of any public comments received by the
Administrator under subsection (a)(6).
(c) Realignment and Consolidation of FAA Services and
Facilities.--Except as provided in subsection (d), the
Administrator shall realign and consolidate the services and
facilities of the FAA in accordance with the recommendations
included in the report submitted under subsection (b).
(d) Congressional Disapproval.--
(1) In general.--The Administrator may not carry out a
recommendation for realignment or consolidation of services
or facilities of the FAA that is included in the report
submitted under subsection (b) if a joint resolution of
disapproval is enacted disapproving such recommendation
before the earlier of--
(A) the last day of the 30-day period beginning on the date
of submission of the report; or
(B) the adjournment of Congress sine die for the session
during which the report is transmitted.
(2) Computation of 30-day period.--For purposes of
paragraph (1)(A), the days on which either house of Congress
is not in session because of an adjournment of more than 3
days to a day certain shall be excluded in computation of the
30-day period.
(e) Definitions.--In this section, the following
definitions apply:
(1) FAA.--The term ``FAA'' means the Federal Aviation
Administration.
(2) Realignment; consolidation.--
(A) In general.--The terms ``realignment'' and
``consolidation'' include any action that--
(i) relocates functions, services, or personnel positions;
(ii) discontinues or severs existing facility functions or
services; or
(iii) combines the results described in clauses (i) and
(ii).
(B) Exclusion.--The terms do not include a reduction in
personnel resulting from workload adjustments.

SEC. 805. LIMITING ACCESS TO FLIGHT DECKS OF ALL-CARGO
AIRCRAFT.

(a) Study.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration, in consultation with appropriate air
carriers, aircraft manufacturers, and air carrier labor
representatives, shall conduct a study to assess the
feasibility of developing a physical means, or a combination
of physical and procedural means, to prohibit individuals
other than authorized flight crewmembers from accessing the
flight deck of an all-cargo aircraft.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to 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 results of
the study.

SEC. 806. CONSOLIDATION OR ELIMINATION OF OBSOLETE,
REDUNDANT, OR OTHERWISE UNNECESSARY REPORTS;
USE OF ELECTRONIC MEDIA FORMAT.

(a) Consolidation or Elimination of Reports.--Not later
than 2 years after the date of enactment of this Act, and
every 2 years thereafter, the Administrator of the Federal
Aviation Administration shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives a report containing--
(1) a list of obsolete, redundant, or otherwise unnecessary
reports the Administration is required by law to submit to
Congress or publish that the Administrator recommends
eliminating or consolidating with other reports; and
(2) an estimate of the cost savings that would result from
the elimination or consolidation of those reports.
(b) Use of Electronic Media for Reports.--
(1) In general.--Notwithstanding any other provision of
law, the Administration--
(A) may not publish any report required or authorized by
law in a printed format; and
(B) shall publish any such report by posting it on the
Administration's Internet Web site in an easily accessible
and downloadable electronic format.
(2) Exception.--Paragraph (1) does not apply to any report
with respect to which the Administrator determines that--
(A) its publication in a printed format is essential to the
mission of the Administration; or
(B) its publication in accordance with the requirements of
paragraph (1) would disclose matter--
(i) described in section 552(b) of title 5, United States
Code; or
(ii) the disclosure of which would have an adverse impact
on aviation safety or security, as determined by the
Administrator.

SEC. 807. PROHIBITION ON USE OF CERTAIN FUNDS.

The Secretary of Transportation may not use any funds made
available pursuant to this Act

[[Page H260]]

(including any amendment made by this Act) to name, rename,
designate, or redesignate any project or program authorized
by this Act (including any amendment made by this Act) for an
individual then serving in Congress as a Member, Delegate,
Resident Commissioner, or Senator.

SEC. 808. STUDY ON AVIATION FUEL PRICES.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General of the United
States shall conduct a study and report to Congress on the
impact of increases in aviation fuel prices on the Airport
and Airway Trust Fund and the aviation industry in general.
(b) Contents.--The study shall include an assessment of the
impact of increases in aviation fuel prices on--
(1) general aviation;
(2) commercial passenger aviation;
(3) piston aircraft purchase and use;
(4) the aviation services industry, including repair and
maintenance services;
(5) aviation manufacturing;
(6) aviation exports; and
(7) the use of small airport installations.
(c) Assumptions About Aviation Fuel Prices.--In conducting
the study required by subsection (a), the Comptroller General
shall use the average aviation fuel price for fiscal year
2010 as a baseline and measure the impact of increases in
aviation fuel prices that range from 5 percent to 200 percent
over the 2010 baseline.

SEC. 809. WIND TURBINE LIGHTING.

(a) Study.--The Administrator of the Federal Aviation
Administration shall conduct a study on wind turbine lighting
systems.
(b) Contents.--In conducting the study, the Administrator
shall examine the following:
(1) The aviation safety issues associated with alternative
lighting strategies, technologies, and regulations.
(2) The feasibility of implementing alternative lighting
strategies or technologies to improve aviation safety.
(3) Any other issue relating to wind turbine lighting.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to
Congress a report on the results of the study, including
information and recommendations concerning the issues
examined under subsection (b).

SEC. 810. AIR-RAIL CODE SHARING STUDY.

(a) Code Share Study.--Not later than 180 days after the
date of enactment of this Act, the Comptroller General of the
United States shall initiate a study regarding--
(1) existing airline and intercity passenger rail code
sharing arrangements; and
(2) the feasibility, costs to taxpayers and other parties,
and benefits of increasing the intermodal connectivity of
airline and intercity passenger rail facilities and systems
to improve passenger travel.
(b) Considerations.--In conducting the study, the
Comptroller General shall consider--
(1) the potential costs to taxpayers and other parties and
benefits of the implementation of more integrated scheduling
between airlines and Amtrak or other intercity passenger rail
carriers achieved through code sharing arrangements;
(2) airport and intercity passenger rail operations that
can improve connectivity between airports and intercity
passenger rail facilities and stations;
(3) the experience of other countries with respect to
airport and intercity passenger rail connectivity; and
(4) such other issues the Comptroller General considers
appropriate.
(c) Report.--Not later than 1 year after initiating the
study required by subsection (a), the Comptroller General
shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report on the results of the study,
including any conclusions of the Comptroller General
resulting from the study.

SEC. 811. D.C. METROPOLITAN AREA SPECIAL FLIGHT RULES AREA.

(a) Submission of Plan to Congress.--Not later than 180
days after the date of enactment of this Act, the
Administrator of the Federal Aviation Administration, in
consultation with the Secretary of Homeland Security and the
Secretary of Defense, shall submit to the Committee on
Transportation and Infrastructure and the Committee on
Homeland Security of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate a plan for the D.C. Metropolitan Area Special Flight
Rules Area.
(b) Contents of Plan.--The plan shall outline specific
changes to the D.C. Metropolitan Area Special Flight Rules
Area that will decrease operational impacts and improve
general aviation access to airports in the National Capital
Region that are currently impacted by the zone.

SEC. 812. FAA REVIEW AND REFORM.

(a) Agency Review.--Not later than 60 days after the date
of enactment of this Act, the Administrator of the Federal
Aviation Administration shall undertake a thorough review of
each program, office, and organization within the
Administration, including the Air Traffic Organization, to
identify--
(1) duplicative positions, programs, roles, or offices;
(2) wasteful practices;
(3) redundant, obsolete, or unnecessary functions;
(4) inefficient processes; and
(5) ineffectual or outdated policies.
(b) Actions To Streamline and Reform FAA.--Not later than
120 days after the date of enactment of this Act, the
Administrator shall undertake such actions as may be
necessary to address the Administrator's findings under
subsection (a), including--
(1) consolidating, phasing-out, or eliminating duplicative
positions, programs, roles, or offices;
(2) eliminating or streamlining wasteful practices;
(3) eliminating or phasing-out redundant, obsolete, or
unnecessary functions;
(4) reforming and streamlining inefficient processes so
that the activities of the Administration are completed in an
expedited and efficient manner; and
(5) reforming or eliminating ineffectual or outdated
policies.
(c) Authority.--Notwithstanding any other provision of law,
the Administrator shall have the authority to undertake the
actions required under subsection (b).
(d) Report to Congress.--Not later than 150 days after the
date of enactment of this Act, the Administrator shall submit
to Congress a report on the actions taken by the
Administrator under this section, including any
recommendations for legislative or administrative actions.

SEC. 813. USE OF MINERAL REVENUE AT CERTAIN AIRPORTS.

(a) In General.--Notwithstanding any other provision of
law, the Administrator of the Federal Aviation Administration
may declare certain revenue derived from or generated by
mineral extraction, production, lease, or other means at a
general aviation airport to be revenue greater than the
amount needed to carry out the 5-year projected maintenance
needs of the airport in order to comply with the applicable
design and safety standards of the Administration.
(b) Use of Revenue.--An airport sponsor that is in
compliance with the conditions under subsection (c) may
allocate revenue identified by the Administrator under
subsection (a) for Federal, State, or local transportation
infrastructure projects carried out by the airport sponsor or
by a governing body within the geographical limits of the
airport sponsor's jurisdiction.
(c) Conditions.--An airport sponsor may not allocate
revenue identified by the Administrator under subsection (a)
unless the airport sponsor--
(1) enters into a written agreement with the Administrator
that sets forth a 5-year capital improvement program for the
airport, which--
(A) includes the projected costs for the operation,
maintenance, and capacity needs of the airport in order to
comply with applicable design and safety standards of the
Administration; and
(B) appropriately adjusts such costs to account for
inflation;
(2) agrees in writing--
(A) to waive all rights to receive entitlement funds or
discretionary funds to be used at the airport under section
47114 or 47115 of title 49, United States Code, during the 5-
year period of the capital improvement plan described in
paragraph (1);
(B) to perpetually comply with sections 47107(b) and 47133
of such title, unless granted specific exceptions by the
Administrator in accordance with this section; and
(C) to operate the airport as a public-use airport, unless
the Administrator specifically grants a request to allow the
airport to close; and
(3) complies with all grant assurance obligations in effect
as of the date of the enactment of this Act during the 20-
year period beginning on the date of enactment of this Act.
(d) Completion of Determination.--Not later than 90 days
after receiving an airport sponsor's application and
requisite supporting documentation to declare that certain
mineral revenue is not needed to carry out the 5-year capital
improvement program at such airport, the Administrator shall
determine whether the airport sponsor's request should be
granted. The Administrator may not unreasonably deny an
application under this subsection.
(e) Rulemaking.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall promulgate
regulations to carry out this section.
(f) General Aviation Airport Defined.--In this section, the
term ``general aviation airport'' has the meaning given that
term in section 47102 of title 49, United States Code, as
amended by this Act.

SEC. 814. CONTRACTING.

When drafting contract proposals for training facilities
under the general contracting authority of the Federal
Aviation Administration, the Administrator of the Federal
Aviation Administration shall ensure--
(1) the proposal is drafted so that all parties can fairly
compete; and
(2) the proposal takes into consideration the most cost-
effective location, accessibility, and services options.

SEC. 815. FLOOD PLANNING.

(a) Study.--The Administrator of the Federal Aviation
Administration, in consultation with the Administrator of the
Federal Emergency Management Agency, shall conduct a review
and submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report on the state of preparedness and
response capability for airports located in flood plains to
respond to and seek assistance in rebuilding after
catastrophic flooding.
(b) Eligibility of Demolition and Rebuilding of
Properties.--Section 1366(e) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4104c(e)) is amended by adding at the
end the following:
``(6) Eligibility of demolition and rebuilding of
properties.--The Director shall consider as an eligible
activity the demolition and rebuilding of properties to at
least base flood levels or higher, if required by the
Director or if required by any State or local ordinance, and
in

[[Page H261]]

accordance with project implementation criteria established
by the Director.''.

SEC. 816. HISTORICAL AIRCRAFT DOCUMENTS.

(a) Preservation of Documents.--
(1) In general.--The Administrator of the Federal Aviation
Administration shall take such actions as the Administrator
determines necessary to preserve original aircraft type
certificate engineering and technical data in the possession
of the Federal Aviation Administration related to--
(A) approved aircraft type certificate numbers ATC 1
through ATC 713; and
(B) Group-2 approved aircraft type certificate numbers 2-1
through 2-544.
(2) Revision of order.--Not later than 3 years after the
date of enactment of this Act, the Administrator shall revise
FAA Order 1350.15C, Item Number 8110. Such revision shall
prohibit the destruction of the historical aircraft documents
identified in paragraph (1).
(3) Consultation.--The Administrator may carry out
paragraph (1) in consultation with the Archivist of the
United States and the Administrator of General Services.
(b) Availability of Documents.--
(1) Freedom of information act requests.--The Administrator
shall make the documents to be preserved under subsection
(a)(1) available to a person--
(A) upon receipt of a request made by the person pursuant
to section 552 of title 5, United States Code; and
(B) subject to a prohibition on use of the documents for
commercial purposes.
(2) Trade secrets, commercial, and financial information.--
Section 552(b)(4) of such title shall not apply to requests
for documents to be made available pursuant to paragraph (1).
(c) Holder of Type Certificate.--
(1) Rights of holder.--Nothing in this section shall affect
the rights of a holder or owner of a type certificate
identified in subsection (a)(1), nor require the holder or
owner to provide, surrender, or preserve any original or
duplicate engineering or technical data to or for the Federal
Aviation Administration, a person, or the public.
(2) Liability.--There shall be no liability on the part of,
and no cause of action of any nature shall arise against, a
holder of a type certificate, its authorized representative,
its agents, or its employees, or any firm, person,
corporation, or insurer related to the type certificate data
and documents identified in subsection (a)(1).
(3) Airworthiness.--Notwithstanding any other provision of
law, the holder of a type certificate identified in
subsection (a)(1) shall only be responsible for Federal
Aviation Administration regulation requirements related to
type certificate data and documents identified in subsection
(a)(1) for aircraft having a standard airworthiness
certificate issued prior to the date the documents are
released to a person by the Federal Aviation Administration
under subsection (b)(1).

SEC. 817. RELEASE FROM RESTRICTIONS.

(a) In General.--Subject to subsection (b), the Secretary
of Transportation is authorized to grant to an airport, city,
or county a release from any of the terms, conditions,
reservations, or restrictions contained in a deed under which
the United States conveyed to the airport, city, or county an
interest in real property for airport purposes pursuant to
section 16 of the Federal Airport Act (60 Stat. 179) or
section 23 of the Airport and Airway Development Act of 1970
(84 Stat. 232).
(b) Condition.--Any release granted by the Secretary
pursuant to subsection (a) shall be subject to the following
conditions:
(1) The applicable airport, city, or county shall agree
that in conveying any interest in the real property which the
United States conveyed to the airport, city, or county, the
airport, city, or county will receive consideration for such
interest that is equal to its fair market value.
(2) Any consideration received by the airport, city, or
county under paragraph (1) shall be used exclusively for the
development, improvement, operation, or maintenance of a
public airport by the airport, city, or county.
(3) Any other conditions required by the Secretary.

SEC. 818. SENSE OF CONGRESS.

It is the sense of Congress that Los Angeles World
Airports, the operator of Los Angeles International Airport
(LAX)--
(1) should consult on a regular basis with representatives
of the community surrounding the airport regarding--
(A) the ongoing operations of LAX; and
(B) plans to expand, modify, or realign LAX facilities; and
(2) should include in such consultations any organization,
the membership of which includes at least 100 individuals who
reside within 10 miles of the airport, that notifies Los
Angeles World Airports of its desire to be included in such
consultations.

SEC. 819. HUMAN INTERVENTION MOTIVATION STUDY.

Not later than 180 days after the date of enactment of this
Act, the Administrator of the Federal Aviation Administration
shall develop a Human Intervention Motivation Study program
for cabin crew members employed by commercial air carriers in
the United States.

SEC. 820. STUDY OF AERONAUTICAL MOBILE TELEMETRY.

Not later than 180 days after the date of enactment of this
Act, the Administrator of the Federal Aviation
Administration, in consultation with other Federal agencies,
shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Science,
Space, and Technology and the Committee on Energy and
Commerce of the House of Representatives a report that
identifies--
(1) the current and anticipated, with respect to the next
decade, need by civil aviation, including equipment
manufacturers, for aeronautical mobile telemetry services;
and
(2) the potential impact to the aerospace industry of the
introduction of a new radio service that operates in the same
spectrum allocated to the aeronautical mobile telemetry
service.

SEC. 821. CLARIFICATION OF REQUIREMENTS FOR VOLUNTEER PILOTS
OPERATING CHARITABLE MEDICAL FLIGHTS.

(a) Reimbursement of Fuel Costs.--Notwithstanding any other
law or regulation, in administering section 61.113(c) of
title 14, Code of Federal Regulations (or any successor
regulation), the Administrator of the Federal Aviation
Administration shall allow an aircraft owner or operator to
accept reimbursement from a volunteer pilot organization for
the fuel costs associated with a flight operation to provide
transportation for an individual or organ for medical
purposes (and for other associated individuals), if the
aircraft owner or operator has--
(1) volunteered to provide such transportation; and
(2) notified any individual that will be on the flight, at
the time of inquiry about the flight, that the flight
operation is for charitable purposes and is not subject to
the same requirements as a commercial flight.
(b) Conditions to Ensure Safety.--The Administrator may
impose minimum standards with respect to training and flight
hours for single-engine, multi-engine, and turbine-engine
operations conducted by an aircraft owner or operator that is
being reimbursed for fuel costs by a volunteer pilot
organization, including mandating that the pilot in command
of such aircraft hold an instrument rating and be current and
qualified for the aircraft being flown to ensure the safety
of flight operations described in subsection (a).
(c) Volunteer Pilot Organization.--In this section, the
term ``volunteer pilot organization'' means an organization
that--
(1) is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and is exempt from taxation under
section 501(a) of such Code; and
(2) is organized for the primary purpose of providing,
arranging, or otherwise fostering charitable medical
transportation.

SEC. 822. PILOT PROGRAM FOR REDEVELOPMENT OF AIRPORT
PROPERTIES.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration shall establish a pilot program under
which operators of up to 4 public-use airports may receive
grants for activities related to the redevelopment of airport
properties in accordance with the requirements of this
section.
(b) Grants.--Under the pilot program, the Administrator may
make a grant in a fiscal year, from funds made available for
grants under section 47117(e)(1)(A) of title 49, United
States Code, to an airport operator for a project--
(1) to support joint planning, engineering, design, and
environmental permitting of projects, including the assembly
and redevelopment of property purchased with noise mitigation
funds made available under section 48103 of such title or
passenger facility revenue collected under section 40117 of
such title; and
(2) to encourage airport-compatible land uses and generate
economic benefits to the local airport authority and adjacent
community.
(c) Eligibility.--An airport operator shall be eligible to
participate in the pilot program if--
(1) the operator has received approval for a noise
compatibility program under section 47504 of such title; and
(2) the operator demonstrates, as determined by the
Administrator--
(A) a readiness to implement cooperative land use
management and redevelopment plans with neighboring local
jurisdictions; and
(B) the probability of a clear economic benefit to
neighboring local jurisdictions and financial return to the
airport through the implementation of those plans.
(d) Distribution.--The Administrator shall seek to award
grants under the pilot program to airport operators
representing different geographic areas of the United States.
(e) Partnership With Neighboring Local Jurisdictions.--An
airport operator shall use grant funds made available under
the pilot program only in partnership with neighboring local
jurisdictions.
(f) Grant Requirements.--The Administrator may not make a
grant to an airport operator under the pilot program unless
the grant is--
(1) made to enable the airport operator and local
jurisdictions undertaking community redevelopment efforts to
expedite those efforts;
(2) subject to a requirement that the local jurisdiction
governing the property interests subject to the redevelopment
efforts has adopted and will continue in effect zoning
regulations that permit airport-compatible redevelopment; and
(3) subject to a requirement that, in determining the part
of the proceeds from disposing of land that is subject to
repayment and reinvestment requirements under section
47107(c)(2)(A) of such title, the total amount of a grant
issued under the pilot program that is attributable to the
redevelopment of such land shall be added to other amounts
that must be repaid or reinvested under that section upon
disposal of such land by the airport operator.
(g) Exceptions to Repayment and Reinvestment
Requirements.--Amounts paid to the Secretary of
Transportation under subsection (f)(3)--
(1) shall be available to the Secretary for, giving
preference to the actions in descending order--
(A) reinvestment in an approved noise compatibility project
at the applicable airport;
(B) reinvestment in another approved project at the airport
that is eligible for funding under section 47117(e) of such
title;

[[Page H262]]

(C) reinvestment in an approved airport development project
at the airport that is eligible for funding under section
47114, 47115, or 47117 of such title;
(D) transfer to an operator of another public airport to be
reinvested in an approved noise compatibility project at such
airport; and
(E) deposit in the Airport and Airway Trust Fund
established under section 9502 of the Internal Revenue Code
of 1986 (26 U.S.C. 9502);
(2) shall be available in addition to amounts authorized
under section 48103 of such title;
(3) shall not be subject to any limitation on grant
obligations for any fiscal year; and
(4) shall remain available until expended.
(h) Federal Share.--
(1) In general.--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.
(2) Allowable costs.--In determining the allowable costs,
the Administrator shall deduct from the total costs of the
activities described in subsection (b) 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.
(i) Maximum Amount.--Not more than $5,000,000 of the funds
made available for grants under section 47117(e)(1)(A) of
such title may be expended under the pilot program for any
single public-use airport.
(j) Use of Passenger Revenue.--An airport operator
participating in the pilot program may use passenger facility
revenue collected under section 40117 of such title to pay
any project cost described in subsection (b) that is not
financed by a grant under the pilot program.
(k) Sunset.--This section shall not be in effect after
September 30, 2015.

SEC. 823. REPORT ON NEW YORK CITY AND NEWARK AIR TRAFFIC
CONTROL FACILITIES.

Under previous agreements, the Federal Aviation
Administration negotiated staffing levels at the air traffic
control facilities in the Newark and New York City areas. Not
later than 90 days after the date of enactment of this Act,
the Administrator of the Federal Aviation Administration
shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report on the Federal Aviation
Administration's staffing and scheduling plans for air
traffic control facilities in the New York City and Newark
Region for the 1-year period beginning on such date of
enactment.

SEC. 824. CYLINDERS OF COMPRESSED OXYGEN OR OTHER OXIDIZING
GASES.

(a) In General.--Subject to subsections (b) and (c),
entities transporting, in the State of Alaska, cylinders of
compressed oxygen or other oxidizing gases aboard aircraft
shall be exempt from compliance with the regulations
described in subsection (d), to the extent that the
regulations require that oxidizing gases transported aboard
aircraft be enclosed in outer packaging capable of passing
the flame penetration resistance test and the thermal
resistance test, without regard to the end use of the
cylinders.
(b) Applicability of Exemption.--The exemption provided
under subsection (a) shall apply only if--
(1) transportation of the cylinders by a ground-based or
water-based mode of transportation is unavailable and
transportation by aircraft is the only practical means for
transporting the cylinders to their destination;
(2) each cylinder is fully covered with a fire- or flame-
resistant blanket that is secured in place; and
(3) the operator of the aircraft complies with the
applicable notification procedures under section 175.33 of
title 49, Code of Federal Regulations.
(c) Aircraft Restriction.--The exemption provided under
subsection (a) shall apply only to the following types of
aircraft:
(1) Cargo-only aircraft transporting the cylinders to a
delivery destination that receives cargo-only service at
least once a week.
(2) Passenger and cargo-only aircraft transporting the
cylinders to a delivery destination that does not receive
cargo-only service at least once a week.
(d) Description of Regulatory Requirements.--The
regulations described in this subsection are the regulations
of the Pipeline and Hazardous Materials Safety Administration
contained in sections 173.302(f)(3), 173.302(f)(4),
173.302(f)(5), 173.304(f)(3), 173.304(f)(4), and
173.304(f)(5) of title 49, Code of Federal Regulations.

SEC. 825. ORPHAN AVIATION EARMARKS.

(a) Earmark Defined.--In this section, the term ``earmark''
means a statutory provision or report language included
primarily at the request of a Senator or a Member, Delegate,
or Resident Commissioner of the House of Representatives
providing, authorizing, or recommending a specific amount of
discretionary budget authority, credit authority, or other
spending authority for a contract, loan, loan guarantee,
grant, or other expenditure with or to an entity or a
specific State, locality, or Congressional district, other
than through a statutory or administrative formula-driven or
competitive award process.
(b) Rescission.--If any earmark relating to the Federal
Aviation Administration has more than 90 percent of
applicable appropriated amounts remaining available for
obligation at the end of the 9th fiscal year beginning after
the fiscal year in which those amounts were appropriated, the
unobligated portion of those amounts is rescinded effective
at the end of that 9th fiscal year, except that the
Administrator of the Federal Aviation Administration may
delay any such rescission if the Administrator determines
that an obligation with respect to those amounts is likely to
occur during the 12-month period beginning on the last day of
that 9th fiscal year.
(c) Identification and Report.--
(1) Agency identification.--At the end of each fiscal year,
the Administrator shall identify and report to the Director
of the Office of Management and Budget every earmark related
to the Administration and with respect to which there is an
unobligated balance of appropriated amounts.
(2) Annual report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Director
shall submit to Congress and make available to the public on
the Internet Web site of the Office a report that includes--
(A) a listing of each earmark related to the Administration
and with respect to which there is an unobligated balance of
appropriated amounts, which shall include the amount of the
original earmark, the amount of the unobligated balance
related to that earmark, and the date on which the funding
expires, if applicable;
(B) the number of rescissions under subsection (b) and the
savings resulting from those rescissions for the previous
fiscal year; and
(C) a listing of earmarks related to the Administration
with amounts scheduled for rescission at the end of the
current fiscal year.

SEC. 826. PRIVACY PROTECTIONS FOR AIR PASSENGER SCREENING
WITH ADVANCED IMAGING TECHNOLOGY.

Section 44901 is amended by adding at the end the
following:
``(l) Limitations on Use of Advanced Imaging Technology for
Screening Passengers.--
``(1) Definitions.--In this subsection, the following
definitions apply:
``(A) Advanced imaging technology.--The term `advanced
imaging technology'--
``(i) means a device used in the screening of passengers
that creates a visual image of an individual showing the
surface of the skin and revealing other objects on the body;
and
``(ii) may include devices using backscatter x-rays or
millimeter waves and devices referred to as `whole-body
imaging technology' or `body scanning machines'.
``(B) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(i) the Committee on Commerce, Science, and
Transportation and the Committee on Homeland Security and
Governmental Affairs of the Senate; and
``(ii) the Committee on Homeland Security of the House of
Representatives.
``(C) Automatic target recognition software.--The term
`automatic target recognition software' means software
installed on an advanced imaging technology that produces a
generic image of the individual being screened that is the
same as the images produced for all other screened
individuals.
``(2) Use of advanced imaging technology.--Beginning June
1, 2012, the Assistant Secretary of Homeland Security
(Transportation Security Administration) shall ensure that
any advanced imaging technology used for the screening of
passengers under this section--
``(A) is equipped with and employs automatic target
recognition software; and
``(B) complies with such other requirements as the
Assistant Secretary determines necessary to address privacy
considerations.
``(3) Extension.--
``(A) In general.--The Assistant Secretary may extend the
deadline specified in paragraph (2), if the Assistant
Secretary determines that--
``(i) an advanced imaging technology equipped with
automatic target recognition software is not substantially as
effective at screening passengers as an advanced imaging
technology without such software; or
``(ii) additional testing of such software is necessary.
``(B) Duration of extensions.--The Assistant Secretary may
issue one or more extensions under subparagraph (A). The
duration of each extension may not exceed one year.
``(4) Reports.--
``(A) In general.--Not later than 60 days after the
deadline specified in paragraph (2), and not later than 60
days after the date on which the Assistant Secretary issues
any extension under paragraph (3), the Assistant Secretary
shall submit to the appropriate congressional committees a
report on the implementation of this subsection.
``(B) Elements.--A report submitted under subparagraph (A)
shall include the following:
``(i) A description of all matters the Assistant Secretary
considers relevant to the implementation of the requirements
of this subsection.
``(ii) The status of compliance by the Transportation
Security Administration with such requirements.
``(iii) If the Administration is not in full compliance
with such requirements--

``(I) the reasons for the noncompliance; and
``(II) a timeline depicting when the Assistant Secretary
expects the Administration to achieve full compliance.

``(C) Security classification.--To the greatest extent
practicable, a report prepared under subparagraph (A) shall
be submitted in an unclassified format. If necessary, the
report may include a classified annex.''.

SEC. 827. COMMERCIAL SPACE LAUNCH LICENSE REQUIREMENTS.

Section 50905(c)(3) of title 51, United States Code, is
amended by striking ``Beginning 8 years after the date of
enactment of the Commercial Space Launch Amendments Act of
2004,'' and inserting ``Beginning on October 1, 2015,''.

SEC. 828. AIR TRANSPORTATION OF LITHIUM CELLS AND BATTERIES.

(a) In General.--The Secretary of Transportation, including
a designee of the Secretary,

[[Page H263]]

may not issue or enforce any regulation or other requirement
regarding the transportation by aircraft of lithium metal
cells or batteries or lithium ion cells or batteries, whether
transported separately or packed with or contained in
equipment, if the requirement is more stringent than the
requirements of the ICAO Technical Instructions.
(b) Exceptions.--
(1) Passenger carrying aircraft.--Notwithstanding
subsection (a), the Secretary may enforce the prohibition on
transporting primary (non-rechargeable) lithium batteries and
cells aboard passenger carrying aircraft set forth in special
provision A100 under section 172.102(c)(2) of title 49, Code
of Federal Regulations (as in effect on the date of enactment
of this Act).
(2) Credible reports.--Notwithstanding subsection (a), if
the Secretary obtains a credible report with respect to a
safety incident from a national or international governmental
regulatory or investigating body that demonstrates that the
presence of lithium metal cells or batteries or lithium ion
cells or batteries on an aircraft, whether transported
separately or packed with or contained in equipment, in
accordance with the requirements of the ICAO Technical
Instructions, has substantially contributed to the initiation
or propagation of an onboard fire, the Secretary--
(A) may issue and enforce an emergency regulation, more
stringent than the requirements of the ICAO Technical
Instructions, that governs the transportation by aircraft of
such cells or batteries, if that regulation--
(i) addresses solely deficiencies referenced in the report;
and
(ii) is effective for not more than 1 year; and
(B) may adopt and enforce a permanent regulation, more
stringent than the requirements of the ICAO Technical
Instructions, that governs the transportation by aircraft of
such cells or batteries, if--
(i) the Secretary bases the regulation upon substantial
credible evidence that the otherwise permissible presence of
such cells or batteries would substantially contribute to the
initiation or propagation of an onboard fire;
(ii) the regulation addresses solely the deficiencies in
existing regulations; and
(iii) the regulation imposes the least disruptive and least
expensive variation from existing requirements while
adequately addressing identified deficiencies.
(c) ICAO Technical Instructions Defined.--In this section,
the term ``ICAO Technical Instructions'' means the
International Civil Aviation Organization Technical
Instructions for the Safe Transport of Dangerous Goods by Air
(as amended, including amendments adopted after the date of
enactment of this Act).

SEC. 829. CLARIFICATION OF MEMORANDUM OF UNDERSTANDING WITH
OSHA.

Not later than 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, in a report to
Congress--
(A) for the completion of work begun under the August 2000
memorandum of understanding between the Administrations; and
(B) to address issues that need further action, as set
forth in the December 2000 joint report of the
Administrations; and
(2) initiate development of a policy statement to set forth
the circumstances in which requirements of the Occupational
Safety and Health Administration may be applied to
crewmembers while working in an aircraft.

SEC. 830. APPROVAL OF APPLICATIONS FOR THE AIRPORT SECURITY
SCREENING OPT-OUT PROGRAM.

(a) In General.--Section 44920(b) is amended to read as
follows:
``(b) Approval of Applications.--
``(1) In general.--Not later than 120 days after the date
of receipt of an application submitted by an airport operator
under subsection (a), the Under Secretary shall approve or
deny the application.
``(2) Standards.--The Under Secretary shall approve an
application submitted by an airport operator under subsection
(a) if the Under Secretary determines that the approval would
not compromise security or detrimentally affect the cost-
efficiency or the effectiveness of the screening of
passengers or property at the airport.
``(3) Reports on denials of applications.--
``(A) In general.--If the Under Secretary denies an
application submitted by an airport operator under subsection
(a), the Under Secretary shall provide to the airport
operator, not later than 60 days following the date of the
denial, a written report that sets forth--
``(i) the findings that served as the basis for the denial;
``(ii) the results of any cost or security analysis
conducted in considering the application; and
``(iii) recommendations on how the airport operator can
address the reasons for the denial.
``(B) Submission to congress.--The Under Secretary shall
submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Homeland
Security of the House of Representatives a copy of any report
provided to an airport operator under subparagraph (A).''.
(b) Waivers.--Section 44920(d) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving the
subparagraphs 2 ems to the right;
(2) by striking ``The Under Secretary'' and inserting the
following:
``(1) In general.--The Under Secretary''; and
(3) by adding at the end the following:
``(2) Waivers.--The Under Secretary may waive the
requirement of paragraph (1)(B) for any company that is a
United States subsidiary with a parent company that has
implemented a foreign ownership, control, or influence
mitigation plan that has been approved by the Defense
Security Service of the Department of Defense prior to the
submission of the application. The Under Secretary has
complete discretion to reject any application from a private
screening company to provide screening services at an airport
that requires a waiver under this paragraph.''.
(c) Recommendations of Airport Operator.--Section 44920 is
amended by adding at the end the following:
``(h) Recommendations of Airport Operator.--As part of any
submission of an application for a private screening company
to provide screening services at an airport, the airport
operator shall provide to the Under Secretary a
recommendation as to which company would best serve the
security screening and passenger needs of the airport, along
with a statement explaining the basis of the operator's
recommendation.''.
(d) Reconsideration of Applications Pending as of January
1, 2011.--
(1) In general.--Upon the request of an airport operator,
the Secretary of Homeland Security shall reconsider any
application for the screening of passengers and property
that--
(A) was submitted by the operator of an airport pursuant to
section 44920(a) of title 49, United States Code;
(B) was pending for final decision by the Secretary on any
day between January 1, 2011, and February 3, 2011, and was
resubmitted by the applicant in accordance with new
guidelines provided by the Secretary after February 3, 2011;
and
(C) has not been approved by the Secretary on or before the
date of enactment of this Act.
(2) Notice to airport operators.--In reconsidering an
application submitted under paragraph (1), the Secretary
shall--
(A) notify the airport operator that submitted the
application that the Secretary will reconsider the
application;
(B) if the application was initially denied, advise the
operator of the findings that served as the basis for the
denial; and
(C) request the operator to provide the Secretary with such
additional information as the Secretary determines necessary
to reconsider the application.
(3) Deadline; standards.--The Secretary shall approve or
deny an application to be reconsidered under paragraph (1)
not later than the 120th day following the date of the
request for reconsideration from the airport operator. The
Secretary shall apply the standards set forth in section
44920(b) of title 49, United States Code (as amended by this
section), in approving and denying such application.
(4) Reports on denials of applications.--
(A) In general.--If the Secretary denies an application of
an airport operator following reconsideration under this
subsection, the Secretary shall provide to the airport
operator a written report that sets forth--
(i) the findings that served as the basis for the denial;
and
(ii) the results of any cost or security analysis conducted
in considering the application.
(B) Submission to congress.--The Secretary shall submit to
the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Homeland Security of the House of
Representatives a copy of any report provided to an airport
operator under subparagraph (A).

TITLE IX--FEDERAL AVIATION RESEARCH AND DEVELOPMENT

SEC. 901. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--Section 48102(a) is amended--
(1) in the matter before paragraph (1) by striking ``of
this title'' and inserting ``of this title and, for each of
fiscal years 2012 through 2015, under subsection (g)'';
(2) by striking paragraphs (1) through (8);
(3) by redesignating paragraphs (9) through (15) as
paragraphs (1) through (7), respectively;
(4) in paragraph (3) (as so redesignated)--
(A) in subparagraph (K) by adding ``and'' at the end; and
(B) in subparagraph (L) by striking ``and'' at the end; and
(5) by striking paragraph (16) and inserting the following:
``(8) $168,000,000 for each of fiscal years 2012 through
2015.''.
(b) Specific Program Limitations.--Section 48102 is amended
by inserting after subsection (f) the following:
``(g) Specific Authorizations.--The following programs
described in the research, engineering, and development
account of the national aviation research plan required under
section 44501(c) are authorized:
``(1) Fire Research and Safety.
``(2) Propulsion and Fuel Systems.
``(3) Advanced Materials/Structural Safety.
``(4) Atmospheric Hazards--Aircraft Icing/Digital System
Safety.
``(5) Continued Airworthiness.
``(6) Aircraft Catastrophic Failure Prevention Research.
``(7) Flightdeck/Maintenance/System Integration Human
Factors.
``(8) System Safety Management.
``(9) Air Traffic Control/Technical Operations Human
Factors.
``(10) Aeromedical Research.
``(11) Weather Program.
``(12) Unmanned Aircraft Systems Research.
``(13) NextGen--Alternative Fuels for General Aviation.
``(14) Joint Planning and Development Office.
``(15) NextGen--Wake Turbulence Research.
``(16) NextGen--Air Ground Integration Human Factors.
``(17) NextGen--Self Separation Human Factors.
``(18) NextGen--Weather Technology in the Cockpit.

[[Page H264]]

``(19) Environment and Energy Research.
``(20) NextGen Environmental Research--Aircraft
Technologies, Fuels, and Metrics.
``(21) System Planning and Resource Management.
``(22) The William J. Hughes Technical Center Laboratory
Facility.''.
(c) Program Authorizations.--From the other accounts
described in the national aviation research plan required
under section 44501(c) of title 49, United States Code, the
following research and development activities are authorized:
(1) Runway Incursion Reduction.
(2) System Capacity, Planning, and Improvement.
(3) Operations Concept Validation.
(4) NAS Weather Requirements.
(5) Airspace Management Program.
(6) NextGen--Air Traffic Control/Technical Operations Human
Factors.
(7) NextGen--Environment and Energy--Environmental
Management System and Advanced Noise and Emissions Reduction.
(8) NextGen--New Air Traffic Management Requirements.
(9) NextGen--Operations Concept Validation-- Validation
Modeling.
(10) NextGen--System Safety Management Transformation.
(11) NextGen--Wake Turbulence--Recategorization.
(12) NextGen--Operational Assessments.
(13) NextGen--Staffed NextGen Towers.
(14) Center for Advanced Aviation System Development.
(15) Airports Technology Research Program-- Capacity.
(16) Airports Technology Research Program-- Safety.
(17) Airports Technology Research Program-- Environment.
(18) Airport Cooperative Research--Capacity.
(19) Airport Cooperative Research--Environment.
(20) Airport Cooperative Research--Safety.

SEC. 902. DEFINITIONS.

In this title, the following definitions apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the FAA.
(2) FAA.--The term ``FAA'' means the Federal Aviation
Administration.
(3) Institution of higher education.--The term
``institution of higher education'' has the same meaning
given the term in section 101(a) of the Higher Education Act
of 1965 (20 U.S.C. 1001(a)).
(4) NASA.--The term ``NASA'' means the National Aeronautics
and Space Administration.
(5) NOAA.--The term ``NOAA'' means the National Oceanic and
Atmospheric Administration.

SEC. 903. UNMANNED AIRCRAFT SYSTEMS.

(a) Research Initiative.--Section 44504(b) is amended--
(1) in paragraph (6) by striking ``and'' after the
semicolon;
(2) in paragraph (7) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end 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 aircraft systems that could result in a catastrophic
failure of the unmanned aircraft that would endanger other
aircraft in the national airspace system.''.
(b) Systems, Procedures, Facilities, and Devices.--Section
44505(b) is amended--
(1) in paragraph (4) by striking ``and'' after the
semicolon;
(2) in paragraph (5)(C) by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(6) to develop a better understanding of the relationship
between human factors and unmanned aircraft system safety;
and
``(7) to develop dynamic simulation models for integrating
all classes of unmanned aircraft systems into the national
airspace system without any degradation of existing levels of
safety for all national airspace system users.''.

SEC. 904. RESEARCH PROGRAM ON RUNWAYS.

Using amounts made available under section 48102(a) of
title 49, United States Code, the Administrator shall
continue to carry out a research program under which the
Administrator may make grants to and enter into cooperative
agreements with institutions of higher education and pavement
research organizations for research and technology
demonstrations related to--
(1) the design, construction, rehabilitation, and repair of
airfield pavements to aid in the development of safer, more
cost effective, and more durable airfield pavements; and
(2) engineered material restraining systems for runways at
both general aviation airports and airports with commercial
air carrier operations.

SEC. 905. RESEARCH ON DESIGN FOR CERTIFICATION.

Section 44505 is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Research on Design for Certification.--
``(1) Research.--Not later than 1 year after the date of
enactment of the FAA Modernization and Reform Act of 2012,
the Administrator shall conduct research on methods and
procedures to improve both confidence in and the timeliness
of certification of new technologies for their introduction
into the national airspace system.
``(2) Research plan.--Not later than 6 months after the
date of enactment of the FAA Modernization and Reform Act of
2012, the Administrator shall develop a plan for the research
under paragraph (1) that contains objectives, proposed tasks,
milestones, and a 5-year budgetary profile.
``(3) Review.--The Administrator shall enter into an
arrangement with the National Research Council to conduct an
independent review of the plan developed under paragraph (2)
and shall provide the results of that review to the Committee
on Science, Space, and Technology of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate not later than 18 months after
the date of enactment of the FAA Modernization and Reform Act
of 2012.''.

SEC. 906. AIRPORT COOPERATIVE RESEARCH PROGRAM.

Section 44511(f) is amended--
(1) in paragraph (1) by striking ``establish a 4-year
pilot'' and inserting ``maintain an''; and
(2) in paragraph (4)--
(A) by striking ``Not later than 6 months after the
expiration of the program under this subsection,'' and
inserting ``Not later than September 30, 2012,''; and
(B) by striking ``program, including recommendations as to
the need for establishing a permanent airport cooperative
research program'' and inserting ``program''.

SEC. 907. CENTERS OF EXCELLENCE.

(a) Government's Share of Costs.--Section 44513(f) is
amended to read as follows:
``(f) Government's Share of Costs.--The United States
Government's share of establishing and operating a center and
all related research activities that grant recipients carry
out shall not exceed 50 percent of the costs, except that the
Administrator may increase such share to a maximum of 75
percent of the costs for a fiscal year if the Administrator
determines that a center would be unable to carry out the
authorized activities described in this section without
additional funds.''.
(b) Annual Report.--Section 44513 is amended by adding at
the end the following:
``(h) Annual Report.--The Administrator shall transmit
annually to the Committee on Science, Space, and Technology
of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate at the
time of the President's budget request a report that lists--
``(1) the research projects that have been initiated by
each center in the preceding year;
``(2) the amount of funding for each research project and
the funding source;
``(3) the institutions participating in each research
project and their shares of the overall funding for each
research project; and
``(4) the level of cost-sharing for each research
project.''.

SEC. 908. CENTER OF EXCELLENCE FOR AVIATION HUMAN RESOURCE
RESEARCH.

(a) Establishment.--Using amounts made available under
section 48102(a) of title 49, United States Code, the
Administrator may establish a center of excellence to conduct
research on--
(1) human performance in the air transportation
environment, including among air transportation personnel
such as air traffic controllers, pilots, and technicians; and
(2) any other aviation human resource issue pertinent to
developing and maintaining a safe and efficient air
transportation system.
(b) Activities.--Activities conducted under this section
may include the following:
(1) Research, development, and evaluation of training
programs for air traffic controllers, aviation safety
inspectors, airway transportation safety specialists, and
engineers.
(2) Research and development of best practices for
recruitment of individuals into the aviation field for
mission critical positions.
(3) Research, in consultation with other relevant Federal
agencies, to develop a baseline of general aviation
employment statistics and an analysis of future needs in the
aviation field.
(4) Research and the development of a comprehensive
assessment of the airframe and power plant technician
certification process and its effect on employment trends.
(5) Evaluation of aviation maintenance technician school
environments.
(6) Research and an assessment of the ability to develop
training programs to allow for the transition of recently
unemployed and highly skilled mechanics into the aviation
field.

SEC. 909. INTERAGENCY RESEARCH ON AVIATION AND THE
ENVIRONMENT.

(a) In General.--Using amounts made available under section
48102(a) of title 49, United States Code, the Administrator,
in coordination with NASA and after consultation with other
relevant agencies, may maintain a research program to assess
the potential effect of aviation activities on the
environment and, if warranted, to evaluate approaches to
address any such effect.
(b) Research Plan.--
(1) In general.--The Administrator, in coordination with
NASA and after consultation with other relevant agencies,
shall jointly develop a plan to carry out the research under
subsection (a).
(2) Contents.--The plan shall contain an inventory of
current interagency research being undertaken in this area,
future research objectives, proposed tasks, milestones, and a
5-year budgetary profile.
(3) Requirements.--The plan--
(A) shall be completed not later than 1 year after the date
of enactment of this Act;
(B) shall be submitted to Congress for review; and
(C) shall be updated, as appropriate, every 3 years after
the initial submission.

SEC. 910. AVIATION FUEL RESEARCH AND DEVELOPMENT PROGRAM.

(a) In General.--Using amounts made available under section
48102(a) of title 49, United States Code, the Administrator,
in coordination

[[Page H265]]

with the Administrator of NASA, shall continue research and
development activities into the qualification of an unleaded
aviation fuel and safe transition to this fuel for the fleet
of piston engine aircraft.
(b) Requirements.--In carrying out the program under
subsection (a), the Administrator shall, at a minimum--
(1) not later than 120 days after the date of enactment of
this Act, develop a research and development plan containing
the specific research and development objectives, including
consideration of aviation safety, technical feasibility, and
other relevant factors, and the anticipated timetable for
achieving the objectives;
(2) assess the methods and processes by which the FAA and
industry may expeditiously certify and approve new aircraft
and recertify existing aircraft with respect to unleaded
aviation fuel;
(3) assess technologies that modify existing piston engine
aircraft to enable safe operation of the aircraft using
unleaded aviation fuel and determine the resources necessary
to certify those technologies; and
(4) develop recommendations for appropriate policies and
guidelines to facilitate a transition to unleaded aviation
fuel for piston engine aircraft.
(c) Collaboration.--In carrying out the program under
subsection (a), the Administrator shall collaborate with--
(1) industry groups representing aviation consumers,
manufacturers, and fuel producers and distributors; and
(2) other appropriate Federal agencies.
(d) Report.--Not later than 270 days after the date of
enactment of this Act, the Administrator shall provide to the
Committee on Science, Space, and Technology of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the plan,
information obtained, and policies and guidelines developed
pursuant to subsection (b).

SEC. 911. RESEARCH PROGRAM ON ALTERNATIVE JET FUEL TECHNOLOGY
FOR CIVIL AIRCRAFT.

(a) In General.--Using amounts made available under section
48102(a) of title 49, United States Code, the Administrator
shall establish a research program to assist in the
development and qualification of jet fuel from alternative
sources (such as natural gas, biomass, ethanol, butanol, and
hydrogen) and other renewable sources.
(b) Authority To Make Grants.--The Administrator shall
carry out the program through the use of grants or other
measures authorized under section 106(l)(6) of such title,
including reimbursable agreements with other Federal
agencies.
(c) Participation in Program.--
(1) Participation of educational and research
institutions.--In carrying out the program, the Administrator
shall include participation by--
(A) educational and research institutions that have
existing facilities and leverage private sector partnerships;
and
(B) consortia with experience across the supply chain,
including with research, feedstock development and
production, small-scale development, testing, and technology
evaluation related to the creation, processing, production,
and transportation of alternative aviation fuel.
(2) Use of nasa facilities.--In carrying out the program,
the Administrator shall consider utilizing the existing
capacity in aeronautics research at Langley Research Center,
Glenn Research Center, and other appropriate facilities of
NASA.
(d) Designation of Institution as a Center of Excellence.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Administrator may designate an
institution described in subsection (c)(1)(A) as a Center of
Excellence for Alternative Jet-Fuel Research in Civil
Aircraft.
(2) Effect of designation.--The center designated under
paragraph (1) shall become, upon its designation--
(A) a member of the Consortium for Continuous Low Energy,
Emissions, and Noise of the FAA; and
(B) part of a Joint Center of Excellence with the
Partnership for Air Transportation Noise and Emission
Reduction FAA Center of Excellence.

SEC. 912. REVIEW OF FAA'S ENERGY-RELATED AND ENVIRONMENT-
RELATED RESEARCH PROGRAMS.

SEC. 913. REVIEW OF FAA'S AVIATION SAFETY-RELATED RESEARCH
PROGRAMS.

(a) Review.--Using amounts made available under section
48102(a) of title 49, United States Code, the Administrator
shall enter into an arrangement for an independent external
review of the FAA's aviation safety-related research
programs. The review shall assess whether--
(1) the programs have well-defined, prioritized, and
appropriate research objectives;
(2) the programs are properly coordinated with the safety
research programs of NASA and other relevant Federal
agencies;
(3) the programs have allocated appropriate resources to
each of the research objectives;
(4) the programs should include a determination about
whether a survey of participants across the air
transportation system is an appropriate way to study safety
risks within such system; and
(5) there exist suitable mechanisms for transitioning the
research results from the programs into the FAA's operational
technologies and procedures and certification activities in a
timely manner.
(b) Aviation Safety-Related Research Programs To Be
Assessed.--The FAA aviation safety-related research programs
to be assessed under the review shall include, at a minimum,
the following:
(1) Air traffic control/technical operations human factors.
(2) Runway incursion reduction.
(3) Flightdeck/maintenance system integration human
factors.
(4) Airports technology research--safety.
(5) Airport Cooperative Research Program-- safety.
(6) Weather Program.
(7) Atmospheric hazards/digital system safety.
(8) Fire research and safety.
(9) Propulsion and fuel systems.
(10) Advanced materials/structural safety.
(11) Aging aircraft.
(12) Aircraft catastrophic failure prevention research.
(13) Aeromedical research.
(14) Aviation safety risk analysis.
(15) Unmanned aircraft systems research.
(c) Report.--Not later than 14 months after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Science, Space, and Technology of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the results of the
review.

SEC. 914. PRODUCTION OF CLEAN COAL FUEL TECHNOLOGY FOR
CIVILIAN AIRCRAFT.

(a) Establishment of Research Program.--Using amounts made
available under section 48102(a) of title 49, United States
Code, the Administrator shall establish a research program
related to developing jet fuel from clean coal.
(b) Authority To Make Grants.--The Administrator shall
carry out the program through grants or other measures
authorized under section 106(l)(6) of such title, including
reimbursable agreements with other Federal agencies.
(c) Participation in Program.--In carrying out the program,
the Administrator shall include participation by educational
and research institutions that have existing facilities and
experience in the development and deployment of technology
that processes coal into aviation fuel.
(d) Designation of Institution as a Center of Excellence.--
Not later than 180 days after the date of enactment of this
Act, the Administrator may designate an institution described
in subsection (c) as a Center of Excellence for Coal-to-Jet-
Fuel Research.

SEC. 915. WAKE TURBULENCE, VOLCANIC ASH, AND WEATHER
RESEARCH.

Not later than 60 days after the date of enactment of this
Act, the Administrator shall--
(1) initiate an evaluation of proposals related to research
on the nature of wake vortexes that would increase national
airspace system capacity by reducing existing spacing
requirements between aircraft of all sizes;
(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) coordinate with NOAA, NASA, and other appropriate
Federal agencies to conduct research to reduce the hazards
presented to commercial aviation related to--
(A) ground de-icing and 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.

SEC. 916. 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 ``for fiscal year 2004'' and inserting ``for each of
fiscal years 2012 through 2015''.

SEC. 917. RESEARCH AND DEVELOPMENT OF EQUIPMENT TO CLEAN AND
MONITOR THE ENGINE AND APU BLEED AIR SUPPLIED
ON PRESSURIZED AIRCRAFT.

(a) In General.--Not later than 60 days after the date of
enactment of this Act, the Administrator, to the extent
practicable, shall implement a research program for the
identification or development of appropriate and effective
air cleaning technology and sensor technology for the engine
and auxiliary power unit bleed air supplied to the passenger
cabin and flight deck of a pressurized aircraft.
(b) Technology Requirements.--The technology referred to in
subsection (a) shall have the capacity, at a minimum--
(1) to remove oil-based contaminants from the bleed air
supplied to the passenger cabin and flight deck; and

[[Page H266]]

(2) to detect and record oil-based contaminants in the
portion of the total air supplied to the passenger cabin and
flight deck from bleed air.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Transportation and Infrastructure
and the Committee on Science, Space, and Technology of the
House of Representatives a report on the results of the
research and development work carried out under this section.

SEC. 918. EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR
NEXTGEN.

(a) Review.--The Administrator shall enter into an
arrangement for an independent external review of the
enterprise architecture for the Next Generation Air
Transportation System.
(b) Contents.--At a minimum, the review to be conducted
under subsection (a) shall--
(1) highlight the technical activities, including human-
system design, organizational design, and other safety and
human factor aspects of the system, that will be necessary to
successfully transition current and planned modernization
programs to the future system envisioned by the Joint
Planning and Development Office of the FAA;
(2) assess technical, cost, and schedule risk for the
software development that will be necessary to achieve the
expected benefits from a highly automated air traffic
management system and the implications for ongoing
modernization projects; and
(3) determine how risks with automation efforts for the
Next Generation Air Transportation System can be mitigated
based on the experiences of other public or private entities
in developing complex, software-intensive systems.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall submit to the
Committee on Transportation and Infrastructure and the
Committee on Science, Space, and Technology of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report containing the results
of the review conducted pursuant to subsection (a).

SEC. 919. AIRPORT SUSTAINABILITY PLANNING WORKING GROUP.

(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall prepare and
submit a problem statement to the Transportation Research
Board for the purpose of initiating a study under the Airport
Cooperative Research Program on airport sustainability
practices.
(b) Functions.--The purpose of the study shall be--
(1) to examine and develop best airport practices and
metrics for the sustainable design, construction, planning,
maintenance, and operation of an airport;
(2) to examine potential standards for a rating system
based on the best sustainable practices and metrics;
(3) to examine potential standards for a voluntary airport
rating process based on the best sustainable practices,
metrics, and ratings; and
(4) to examine and develop recommendations for future
actions with regard to sustainability.
(c) Report.--Not later than 18 months after the date of
initiation of the study, a report on the study shall be
submitted to the Administrator and the Committee on Science,
Space, and Technology of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate.

TITLE X--NATIONAL MEDIATION BOARD

SEC. 1001. RULEMAKING AUTHORITY.

Title I of the Railway Labor Act (45 U.S.C. 151 et seq.) is
amended by inserting after section 10 the following:

``SEC. 10A. RULES AND REGULATIONS.

``(a) In General.--The Mediation Board shall have the
authority from time to time to make, amend, and rescind, in
the manner prescribed by section 553 of title 5, United
States Code, and after opportunity for a public hearing, such
rules and regulations as may be necessary to carry out the
provisions of this Act.
``(b) Application.--The requirements of subsection (a)
shall not apply to any rule or proposed rule to which the
third sentence of section 553(b) of title 5, United States
Code, applies.''.

SEC. 1002. RUNOFF ELECTION RULES.

Paragraph Ninth of section 2 of the Railway Labor Act (45
U.S.C. 152) is amended by inserting after the fourth sentence
the following: ``In any such election for which there are 3
or more options (including the option of not being
represented by any labor organization) on the ballot and no
such option receives a majority of the valid votes cast, the
Mediation Board shall arrange for a second election between
the options receiving the largest and the second largest
number of votes.''.

SEC. 1003. BARGAINING REPRESENTATIVE CERTIFICATION.

Section 2 of the Railway Labor Act (45 U.S.C. 152) is
amended by adding at the end the following:
``Twelfth. Showing of interest for representation
elections. The Mediation Board, upon receipt of an
application requesting that an organization or individual be
certified as the representative of any craft or class of
employees, shall not direct an election or use any other
method to determine who shall be the representative of such
craft or class unless the Mediation Board determines that the
application is supported by a showing of interest from not
less than 50 percent of the employees in the craft or
class.''.

SEC. 1004. OVERSIGHT.

Title I of the Railway Labor Act (45 U.S.C. 151 et seq.) is
amended by adding at the end the following:

``SEC. 15. EVALUATION AND AUDIT OF MEDIATION BOARD.

``(a) Evaluation and Audit of Mediation Board.--
``(1) In general.--In order to promote economy, efficiency,
and effectiveness in the administration of the programs,
operations, and activities of the Mediation Board, the
Comptroller General of the United States shall evaluate and
audit the programs and expenditures of the Mediation Board.
Such an evaluation and audit shall be conducted not less
frequently than every 2 years, but may be conducted as
determined necessary by the Comptroller General or the
appropriate congressional committees.
``(2) Responsibility of comptroller general.--In carrying
out the evaluation and audit required under paragraph (1),
the Comptroller General shall evaluate and audit the
programs, operations, and activities of the Mediation Board,
including, at a minimum--
``(A) information management and security, including
privacy protection of personally identifiable information;
``(B) resource management;
``(C) workforce development;
``(D) procurement and contracting planning, practices, and
policies;
``(E) the extent to which the Mediation Board follows
leading practices in selected management areas; and
``(F) the processes the Mediation Board follows to address
challenges in--
``(i) initial investigations of applications requesting
that an organization or individual be certified as the
representative of any craft or class of employees;
``(ii) determining and certifying representatives of
employees; and
``(iii) ensuring that the process occurs without
interference, influence, or coercion.
``(b) Immediate Review of Certification Procedures.--Not
later than 180 days after the date of enactment of this
section, the Comptroller General shall review the processes
applied by the Mediation Board to certify or decertify
representation of employees by a labor organization and make
recommendations to the Board and appropriate congressional
committees regarding actions that may be taken by the Board
or Congress to ensure that the processes are fair and
reasonable for all parties. Such review shall be conducted
separately from any evaluation and audit under subsection (a)
and shall include, at a minimum--
``(1) an evaluation of the existing processes and changes
to such processes that have occurred since the establishment
of the Mediation Board and whether those changes are
consistent with congressional intent; and
``(2) a description of the extent to which such processes
are consistent with similar processes applied to other
Federal or State agencies with jurisdiction over labor
relations, and an evaluation of any justifications for any
discrepancies between the processes of the Mediation Board
and such similar Federal or State processes.
``(c) Appropriate Congressional Committee Defined.--In this
section, the term `appropriate congressional committees'
means the Committee on Transportation and Infrastructure of
the House of Representatives, the Committee on Commerce,
Science, and Transportation of the Senate, and the Committee
on Health, Education, Labor, and Pensions of the Senate.''.

TITLE XI--AIRPORT AND AIRWAY TRUST FUND PROVISIONS AND RELATED TAXES

SEC. 1100. 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. 1101. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY
TRUST FUND.

(a) Fuel Taxes.--Subparagraph (B) of section 4081(d)(2) is
amended by striking ``February 17, 2012'' and inserting
``September 30, 2015''.
(b) Ticket Taxes.--
(1) Persons.--Clause (ii) of section 4261(j)(1)(A) is
amended by striking ``February 17, 2012'' and inserting
``September 30, 2015''.
(2) Property.--Clause (ii) of section 4271(d)(1)(A) is
amended by striking ``February 17, 2012'' and inserting
``September 30, 2015''.
(c) Effective Date.--The amendments made by this section
shall take effect on February 18, 2012.

SEC. 1102. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND
EXPENDITURE AUTHORITY.

(a) In General.--Paragraph (1) of section 9502(d) is
amended--
(1) by striking ``February 18, 2012'' in the matter
preceding subparagraph (A) and inserting ``October 1, 2015'',
and
(2) by striking the semicolon at the end of subparagraph
(A) and inserting ``or the FAA Modernization and Reform Act
of 2012;''.
(b) Conforming Amendment.--Paragraph (2) of section 9502(e)
is amended by striking ``February 18, 2012'' and inserting
``October 1, 2015''.
(c) Effective Date.--The amendments made by this section
shall take effect on February 18, 2012.

SEC. 1103. 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) in a
fractional program aircraft as fuel--
``(1) for the transportation of a qualified fractional
owner with respect to the fractional ownership aircraft
program of which such aircraft is a part, or

[[Page H267]]

``(2) with respect to the use of such aircraft on account
of such a qualified fractional owner, including use in
deadhead service.
``(b) Amount of Tax.--The rate of tax imposed by subsection
(a) is 14.1 cents per gallon.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Fractional program aircraft.--The term `fractional
program aircraft' means, with respect to any fractional
ownership aircraft program, any aircraft which--
``(A) is listed as a fractional program aircraft in the
management specifications issued to the manager of such
program by the Federal Aviation Administration under subpart
K of part 91 of title 14, Code of Federal Regulations, and
``(B) is registered in the United States.
``(2) Fractional ownership aircraft program.--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) there are 1 or more fractional owners per fractional
program aircraft, with at least 1 fractional program aircraft
having more than 1 owner,
``(C) with respect to at least 2 fractional program
aircraft, none of the ownership interests in such aircraft
are--
``(i) less than the minimum fractional ownership interest,
or
``(ii) held by the program manager referred to in
subparagraph (A),
``(D) there exists a dry-lease aircraft exchange
arrangement among all of the fractional owners, and
``(E) there are multi-year program agreements covering the
fractional ownership, fractional ownership program management
services, and dry-lease aircraft exchange aspects of the
program.
``(3) Definitions related to fractional ownership
interests.--
``(A) Qualified fractional owner.--The term `qualified
fractional owner' means any fractional owner which has a
minimum fractional ownership interest in at least one
fractional program aircraft.
``(B) Minimum fractional ownership interest.--The term
`minimum fractional ownership interest' means, with respect
to each type of aircraft--
``(i) a fractional ownership interest equal to or greater
than 1/16 of at least 1 subsonic, fixed wing, or powered lift
aircraft, or
``(ii) a fractional ownership interest equal to or greater
than 1/32 of at least 1 rotorcraft aircraft.
``(C) Fractional ownership interest.--The term `fractional
ownership interest' means--
``(i) the ownership of an interest in a fractional program
aircraft,
``(ii) the holding of a multi-year leasehold interest in a
fractional program aircraft, or
``(iii) the holding of a multi-year leasehold interest
which is convertible into an ownership interest in a
fractional program aircraft.
``(D) Fractional owner.--The term `fractional owner' means
any person owning any interest (including the entire
interest) in a fractional program aircraft.
``(4) Dry-lease aircraft exchange.--The term `dry-lease
aircraft exchange' means an agreement, documented by the
written program agreements, under which the fractional
program aircraft are available, on an as needed basis without
crew, to each fractional owner.
``(5) Special rule relating to use of fractional program
aircraft for flight demonstration, maintenance, or
training.--For purposes of subsection (a), a fractional
program aircraft shall not be considered to be used for the
transportation of a qualified fractional owner, or on account
of such qualified fractional owner, when it is used for
flight demonstration, maintenance, or crew training.
``(6) Special rule relating to deadhead service.--A
fractional program aircraft shall not be considered to be
used on account of a qualified fractional owner when it is
used in deadhead service and a person other than a qualified
fractional owner is separately charged for such service.
``(d) Termination.--This section shall not apply to liquids
used as a fuel in an aircraft after September 30, 2021.''.
(2) Conforming amendment.--Subsection (e) of section 4082
is amended by inserting ``(other than kerosene with respect
to which tax is imposed under section 4043)'' after ``In the
case of kerosene''.
(3) Transfer of revenues to airport and airway trust
fund.--Paragraph (1) of section 9502(b) 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 before October 1,
2015, if tax is imposed under section 4043 with respect to
the fuel consumed in such use or if no tax is imposed on such
use under section 4043 by reason of subsection (c)(5)
thereof.''.
(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 if tax is imposed
under section 4043 with respect to the fuel used in such
transportation. This subsection shall not apply after
September 30, 2015.''.
(d) Effective Dates.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to fuel used after March 31, 2012.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to uses of aircraft after March 31, 2012.
(3) Subsection (c).--The amendments made by subsection (c)
shall apply to taxable transportation provided after March
31, 2012.

SEC. 1104. TRANSPARENCY IN PASSENGER TAX DISCLOSURES.

(a) In General.--Section 7275 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), if such amounts
are separately disclosed, it shall be unlawful for the
disclosure of such amounts to include any amounts not
attributable to such taxes.
``(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 March
31, 2012.

SEC. 1105. TAX-EXEMPT BOND FINANCING FOR FIXED-WING EMERGENCY
MEDICAL AIRCRAFT.

(a) In General.--Subsection (e) of section 147 is amended
by adding at the end the following new sentence: ``The
preceding sentence shall not apply to any fixed-wing aircraft
equipped for, and exclusively dedicated to providing, acute
care emergency medical services (within the meaning of
section 4261(g)(2)).''.
(b) Effective Date.--The amendment made by this section
shall apply to obligations issued after the date of the
enactment of this Act.

SEC. 1106. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER
BANKRUPTCY.

(a) General Rules.--
(1) Rollover of airline payment amount.--If a qualified
airline employee receives any airline payment amount and
transfers any portion of such amount to a traditional IRA
within 180 days of receipt of such amount (or, if later,
within 180 days of the date of the enactment of this Act),
then such amount (to the extent so transferred) shall be
treated as a rollover contribution described in section
402(c) of the Internal Revenue Code of 1986. A qualified
airline employee making such a transfer may exclude from
gross income the amount transferred, in the taxable year in
which the airline payment amount was paid to the qualified
airline employee by the commercial passenger airline carrier.
(2) Transfer of amounts attributable to airline payment
amount following rollover to roth ira.--A qualified airline
employee who has contributed an airline payment amount to a
Roth IRA that is treated as a qualified rollover contribution
pursuant to section 125 of the Worker, Retiree, and Employer
Recovery Act of 2008, may transfer to a traditional IRA, in a
trustee-to-trustee transfer, all or any part of the
contribution (together with any net income allocable to such
contribution), and the transfer to the traditional IRA will
be deemed to have been made at the time of the rollover to
the Roth IRA, if such transfer is made within 180 days of the
date of the enactment of this Act. A qualified airline
employee making such a transfer may exclude from gross income
the airline payment amount previously rolled over to the Roth
IRA, to the extent an amount attributable to the previous
rollover was transferred to a traditional IRA, in the taxable
year in which the airline payment amount was paid to the
qualified airline employee by the commercial passenger
airline carrier. No amount so transferred to a traditional
IRA may be treated as a qualified rollover contribution with
respect to a Roth IRA within the 5-taxable year period
beginning with the taxable year in which such transfer was
made.
(3) Extension of time to file claim for refund.--A
qualified airline employee who excludes an amount from gross
income in a prior taxable year under paragraph (1) or (2) may
reflect such exclusion in a claim for refund filed within the
period of limitation under section 6511(a) of such Code (or,
if later, April 15, 2013).
(4) Overall limitation on amounts transferred to
traditional iras.--
(A) In general.--The aggregate amount of airline payment
amounts which may be transferred to 1 or more traditional
IRAs under paragraphs (1) and (2) with respect to any
qualified employee for any taxable year shall not exceed the
excess (if any) of--
(i) 90 percent of the aggregate airline payment amounts
received by the qualified airline employee during the taxable
year and all preceding taxable years, over
(ii) the aggregate amount of such transfers to which
paragraphs (1) and (2) applied for all preceding taxable
years.

[[Page H268]]

(B) Special rules.--For purposes of applying the limitation
under subparagraph (A)--
(i) any airline payment amount received by the surviving
spouse of any qualified employee, and any amount transferred
to a traditional IRA by such spouse under subsection (d),
shall be treated as an amount received or transferred by the
qualified employee, and
(ii) any amount transferred to a traditional IRA which is
attributable to net income described in paragraph (2) shall
not be taken into account.
(5) Covered executives not eligible to make transfers.--
Paragraphs (1) and (2) shall not apply to any transfer by a
qualified airline employee (or any transfer authorized under
subsection (d) by a surviving spouse of the qualified airline
employee) if at any time during the taxable year of the
transfer or any preceding taxable year the qualified airline
employee held a position described in subparagraph (A) or (B)
of section 162(m)(3) with the commercial passenger airline
carrier from whom the airline payment amount was received.
(b) Treatment of Airline Payment Amounts and Transfers for
Employment Taxes.--For purposes of chapter 21 of the Internal
Revenue Code of 1986 and section 209 of the Social Security
Act, an airline payment amount shall not fail to be treated
as a payment of wages by the commercial passenger airline
carrier to the qualified airline employee in the taxable year
of payment because such amount is excluded from the qualified
airline employee's gross income under subsection (a).
(c) Definitions and Special Rules.--For purposes of this
section--
(1) Airline payment amount.--
(A) In general.--The term ``airline payment amount'' means
any payment of any money or other property which is payable
by a commercial passenger airline carrier to a qualified
airline employee--
(i) under the approval of an order of a Federal bankruptcy
court in a case filed after September 11, 2001, and before
January 1, 2007, and
(ii) in respect of the qualified airline employee's
interest in a bankruptcy claim against the carrier, any note
of the carrier (or amount paid in lieu of a note being
issued), or any other fixed obligation of the carrier to pay
a lump sum amount.
The amount of such payment shall be determined without regard
to any requirement to deduct and withhold tax from such
payment under sections 3102(a) of the Internal Revenue Code
of 1986 and 3402(a) of such Code.
(B) Exception.--An airline payment amount shall not include
any amount payable on the basis of the carrier's future
earnings or profits.
(2) Qualified airline employee.--The term ``qualified
airline employee'' means an employee or former employee of a
commercial passenger airline carrier who was a participant in
a defined benefit plan maintained by the carrier which--
(A) is a plan described in section 401(a) of the Internal
Revenue Code of 1986 which includes a trust exempt from tax
under section 501(a) of such Code, and
(B) was terminated or became subject to the restrictions
contained in paragraphs (2) and (3) of section 402(b) of the
Pension Protection Act of 2006.
(3) Traditional ira.--The term ``traditional IRA'' means an
individual retirement plan (as defined in section 7701(a)(37)
of the Internal Revenue Code of 1986) which is not a Roth
IRA.
(4) Roth ira.--The term ``Roth IRA'' has the meaning given
such term by section 408A(b) of such Code.
(d) Surviving Spouse.--If a qualified airline employee died
after receiving an airline payment amount, or if an airline
payment amount was paid to the surviving spouse of a
qualified airline employee in respect of the qualified
airline employee, the surviving spouse of the qualified
airline employee may take all actions permitted under section
125 of the Worker, Retiree and Employer Recovery Act of 2008,
or under this section, to the same extent that the qualified
airline employee could have done had the qualified airline
employee survived.
(e) Effective Date.--This section shall apply to transfers
made after the date of the enactment of this Act with respect
to airline payment amounts paid before, on, or after such
date.

SEC. 1107. TERMINATION OF EXEMPTION FOR SMALL JET AIRCRAFT ON
NONESTABLISHED LINES.

(a) In General.--The first sentence of section 4281 is
amended by inserting ``or when such aircraft is a jet
aircraft'' after ``an established line''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable transportation provided after March
31, 2012.

SEC. 1108. MODIFICATION OF CONTROL DEFINITION FOR PURPOSES OF
SECTION 249.

(a) In General.--Section 249(a) is amended by striking ``,
or a corporation in control of, or controlled by,'' and
inserting ``, or a corporation in the same parent-subsidiary
controlled group (within the meaning of section 1563(a)(1)
as''.
(b) Conforming Amendment.--Section 249(b) is amended--
(1) by striking all that precedes ``is the issue price''
and inserting:
``(b) Adjusted Issue Price.--For purposes of subsection
(a), the adjusted issue price'', and
(2) by striking paragraph (2).
(c) Effective Date.--The amendments made by this section
shall apply to repurchases after the date of the enactment of
this Act.

TITLE XII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO-ACT OF 2010

SEC. 1201. COMPLIANCE PROVISION.

The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go-Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
jointly submitted for printing in the Congressional Record by
the Chairmen of the House and Senate Budget Committees,
provided that such statement has been submitted prior to the
vote on passage in the House acting first on this conference
report or amendment between the Houses.
And the Senate agree to the same.
From the Committee on Transportation and Infrastructure, for
consideration of the House bill and the Senate amendment, and
modifications committed to conference:
John L. Mica,
Thomas E. Petri,
John J. Duncan, Jr.,
Sam Graves,
Bill Shuster,
Jean Schmidt,
Chip Cravaack,
Nick J. Rahall II,
Peter A. DeFazio,
Jerry F. Costello,
Leonard L. Boswell,
Russ Carnahan,
From the Committee on Science, Space, and Technology, for
consideration of sections 102, 105, 201, 202, 204, 208, 209,
212, 220, 321, 324, 326, 812, title X, and title XIII of the
House bill and sections 102, 103, 106, 216, 301, 302, 309,
320, 327, title VI, and section 732 of the Senate amendment,
and modifications committed to conference:
Ralph M. Hall,
Steven M. Palazzo,
Eddie Bernice Johnson,
From the Committee on Ways and Means, for consideration of
title XI of the House bill and titles VIII and XI of the
Senate amendment, and modifications committed to conference:
Dave Camp,
Patrick J. Tiberi,
Sander M. Levin,
Managers on the Part of the House.

John D. Rockefeller IV,
Barbara Boxer,
Bill Nelson,
Maria Cantwell,
Kay Bailey Hutchison,
Johnny Isakson,
From the Committee on Finance:
Max Baucus,
Managers on the Part of the Senate.

Joint Explanatory Statement of the Committee of Conference

The managers on the part of the House and the Senate at the
conference on the disagreeing votes of the two Houses on the
amendment of the Senate to the bill (H.R. 658), to amend
title 49, United States Code, to authorize appropriations for
the Federal Aviation Administration for fiscal years 2011
through 2014, to streamline programs, create efficiencies,
reduce waste, and improve aviation safety and capacity, to
provide stable funding for the national aviation system, and
for other purposes, submit the following joint statement to
the House and the Senate in explanation of the effect of the
action agreed upon by the managers and recommended in the
accompanying conference report:
The Senate amendment struck all of the House bill after the
enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment of
the Senate with an amendment that is a substitute for the
House bill and the Senate amendment. The committee of
conference met on January 31, 2012 (the Senate chairing), and
resolved their differences. The differences between the House
bill, the Senate amendment, and the substitute agreed to in
conference are noted below, except for clerical corrections,
conforming changes made necessary by agreements reached by
the conferees, and minor drafting and clarifying changes.

TITLE

House Bill
``FAA Reauthorization and Reform Act of 2011''.
Senate Bill
``FAA Air Transportation, Modernization, and Safety
Improvement Act''.
Conference Substitute
``FAA Modernization and Reform Act of 2012''

AMENDMENTS TO TITLE 49, UNITED STATES CODE

TERM

House Bill
2011 through 2014.
Senate Bill
2010 through 2011.
Conference Substitute
2012 through 2015.

TITLE I--AUTHORIZATIONS

AUTHORIZATION LEVELS ($ IN BILLIONS)

H101(a),102,103/S101,102,103,104

House bill
Section 101(a) authorizes the Federal Aviation
Administration's (FAA) Airport Improvement Program (AIP)
account at: $3.176 billion for Fiscal Year (FY) 2011; $3
billion for FY 2012; and $3 billion for FY 2013; and $3
billion for FY 2014. It prohibits the use of AIP funds for
carrying out the Airport Cooperative Research Program or the
Airports Technology Research Program and extends the
obligational authority to September 30, 2014. It makes funds
obligated in subsection (a) available until they are spent.
Section 102 authorizes the FAA's Facilities and Equipment
(F&E) account at: $2.7 billion

[[Page H269]]

for FY 2011 and $2.6 billion for FYs 2012 through FY 2014. It
removes references to the following accounts: enhanced safety
and security for aircraft operations in the Gulf of Mexico;
operational benefits of wake vortex advisory system; ground
based precision navigational aids; ground based precision
navigation; standby power efficiency program; and a pilot
program to provide incentives for development of new
technologies.
Section 103 authorizes the FAA's Operations account at:
$9.403 billion for FY 2011 and $9.168 billion for FYs 2012
through FY 2014. It authorizes expenditures necessary for:
the Air Traffic Control Collegiate Training Initiative;
completion of Alaska aviation safety project regarding 3-D
mapping of main aviation corridors; and carrying out the
Aviation Safety Reporting System. The FAA's expenditure
authority is also extended through 2014. The Secretary of
Transportation is permitted to transfer funds from non-
safety related programs if appropriated funds are
insufficient to meet salary, operations, and maintenance
expenses.
Senate bill
Section 101 authorizes the FAA's Operations account at
$9.336 billion in FY 2010 and $9.62 billion in FY 2011.
Section 102 authorizes the FAA's Facilities and Equipment
account at $3.5 billion in FY 2010, of which $500 million
would be derived from the newly-created Air Traffic System
Modernization Account (ATSMA); and $3.6 billion in FY 2011,
of which $500 million would be derived from the new account
established by this section.
Section 103 authorizes the FAA's Research, Engineering and
Development (R,E,&D) account at $200 million in FY 2010 and
$206 million in FY 2011. It replaces current statutory
language in--Sec. 48102(a) (which has a breakdown of how the
money should be allotted) with the authorization levels only
and strikes several paragraphs for the R,E,&D account. It
requires the FAA to establish a grant program to promote
aviation research at undergraduate and technical colleges,
including schools serving Historically Black Colleges and
Universities (HBCU) students, Hispanic, Native Alaskan and
Hawaiian populations.
Section 104 authorizes the FAA's AIP account at $4.0
billion for FY 2010 and $4.1 billion in FY 2011.
Conference Substitute
The conference committee agreed to the following funding
levels:
Section 101 authorizes the FAA's Airport Improvement
Program (AIP) account at $3.35 billion for FY 2012 through FY
2015.
Section 102 authorizes the FAA's Facilities and Equipment
(F&E) account at: $2.731 billion for FY 2012, $2.715 for FY
2013, $2.730 billion for FY 2014 and FY 2015.
Section 103 authorizes the FAA's Operations account at:
$9.653 billion for FY 2012, $9.539 billion for FY 2013,
$9.596 billion for FY 2014, and $9.653 billion for FY 2015.
Section 901 authorizes the FAA's Research Engineering and
Development (R,E,&D) account at $168 million annually for FY
2012 through 2015.

FUNDING OF AVIATION PROGRAMS

H104/S105

House bill
Section 104 modifies the formula that determines the amount
made available from the Airport and Airways Trust Fund (Trust
Fund) each year to fund the FAA. The section requires the
Trust Fund support for aviation programs in FY 2011 be equal
to 90 percent of the estimated Trust Fund revenue (taxes plus
interest). In FY 2012, FY 2013 and FY 2014, the Trust Fund
appropriation should equal the sum of 90 percent of the
estimated Trust Fund revenue, plus the difference between
actual revenue and the Trust Fund appropriation in the second
preceding fiscal year. It extends the authorization of
appropriations for the general fund to 2014 and makes
technical corrections by striking ``level'' and inserting
``estimated level'' and by striking ``level of receipts plus
interest'' and replacing it with ``estimated level of
receipts plus interest.'' Lastly, it amends enforcement of
guarantees by inserting 2014 in place of 2007.
Senate bill
Section 105 extends the budgetary treatment for the FAA's
accounts through FY 2011.
Conference Substitute
House bill modified by moving the dates in the bill forward
by one year.

DELINEATION OF NEXT GENERATION AIR TRANSPORTATION SYSTEMS

H105/S106
House bill
Section 105 requires the list of capital projects that are
part of the Next Generation Air Transportation System
(NextGen) system be included in the Airway Capital Investment
Plan.
Senate bill
Section 106 is a similar provision.
Conference Substitute
House bill.

FUNDING FOR ADMINISTRATION EXPENSES FOR AIRPORT IMPROVEMENT PROGRAM

H106/S107(a)(b)
House bill
Section 106 authorizes funds for the Airport Improvement
Program (AIP) administrative expenses (i.e., AIP approval and
oversight, national airport system planning, airport
standards development and enforcement, airport certification,
and airport-related environmental activities).
Senate bill
Section 107(a)(b) authorizes the administrative expenses
for the FAA's airports program through FY 2011.
Conference Substitute
No provision.

PASSENGER FACILITY CHARGES

H111/S201(b)
House bill
Section 111 defines Passenger Facility Charge (PFC), makes
permanent a pilot program that allows the collection of PFCs
at non-hub airports, and makes a technical correction
changing references of PFCs from ``fees'' to ``charges.''
Senate bill
Section 201(b) makes a technical correction changing
references of PFC from ``fees'' to ``charges''.
Conference Substitute
House bill.

AIRPORT ACCESS FLEXIBILITY PROGRAM

H112/S201(a)

House bill
Section 112 establishes a pilot program, at no more than
five airports, for off-airport intermodal ground access
projects related to movement of airport passengers/property,
subject to certain conditions.
Senate bill
Section 201(a) streamlines the administrative requirements
associated with PFCs, while retaining audit controls and FAA
project and expenditure oversight. It provides requirements
on any airport authority wishing to increase its PFC, or
wishing to impose a PFC to finance an intermodal ground
facility.
Conference Substitute
No provision.

GAO STUDY OF ALTERNATIVE MEANS OF COLLECTING PFCS

H114(a),113/S202

House bill
Section 114(a) defines ``qualifications-based selection''
(QBS) as a competitive procurement process under which firms
compete for capital improvement projects on the basis of
qualifications, past experience, and specific expertise.
Section 113 instructs the U.S. Government Accountability
Office (GAO) to conduct a study of alternative means of PFC
collection to allow such charges be collected without being
included in the ticket price.
Senate bill
Section 202 requires a pilot program for direct collection
of PFCs via the internet or other means, except through air
carriers, under which there would be no cap on the PFC. The
GAO is directed to conduct a study of potential alternative
means of PFC collection.
Conference Substitute
House bill modified by dropping definition of QBS.

QUALIFICATIONS-BASED SELECTION

H114(b)/S--

House bill
Section 114(b) expresses the sense of Congress that
airports should consider the use of qualifications-based
selection in carrying out capital improvement projects using
PFCs collected with the goal of serving the needs of all
stakeholders.
Senate bill
No similar provision.
Conference Substitute
House bill.

REFORM AND STREAMLINING OF PFC AUTHORITY AND COLLECTION

H--/S201(a)

House bill
No similar provision.
Senate bill
Section 201(a) eliminates the existing statutory
requirement that PFC funding may only be used for airport
capital projects that preserve or enhance airport capacity,
safety, or security, or reduce noise. It expedites the PFC
application process by directing collection to begin upon
filing of annual reports containing required information and
after consultation with carriers and public notice
requirements instead of waiting for FAA approval of each PFC
application. This section establishes a process for filing
objections to a PFC project, and allows the Secretary of
Transportation to investigate excessive PFC collections or
for revenue not being used per law. It provides exceptions to
new processes used for intermodal ground access projects and
for an increase in PFC, both of which require prior FAA
approval before collection.
Conference Substitute
House bill.

TECHNICAL AMENDMENTS AND PFC PILOT PROGRAM AT NON-HUB AIRPORTS

H111(b)/S201(a)
House bill
Section 111(b) makes the pilot program for collecting PFCs
at non-hub airports permanent.
Senate bill
Section 201(a) is a similar provision with minor technical
differences.

[[Page H270]]

Conference Substitute
House bill.

PFC ELIGIBILITY FOR BICYCLE STORAGE FACILITIES

H--/S207(b)

House bill.
No provision.
Senate bill
Section 207(b) prohibits PFCs from being used to construct
bicycle storage facilities.
Conference Substitute
House bill.

UPDATE ON OVERFLIGHTS

H121/S706

House bill
Section 121 requires the FAA to guarantee existing
overflight fees are reasonably related to agency costs for
providing air traffic services, and requires the FAA to
adjust the fees and begin collection of the appropriate
amount. The FAA is authorized to periodically modify the fee
based on the cost of providing such service.
Senate bill
Section 706 is similar to the House provision, but it
directs the FAA to establish an Aviation Rulemaking Committee
(ARC) to review overflight fees which the FAA must consult
with before making any adjustments to the fees or collection
is made.
Conference Substitute
House bill modified by removing language creating a special
rule for FYs 2011 through 2015 which specified that ``in each
of fiscal years 2011 through 2015, section 45303(c) shall not
apply to any increase in fees collected pursuant to a final
rule described in paragraph (4)'' and by removing language to
issue a final rule with respect to the NPRM published in the
Federal Register on September 28, 2010.

REGISTRATION FEES

H122/S--

House bill
Section 122 requires the FAA to establish fees for
registration, certification and related services. It
specifies amounts for such fees in the provision for eleven
services, and requires the FAA to periodically adjust the
fees when cost data reveal that the cost of providing the
service changes. Lastly, it specifies that fees should be
treated as offsetting collections subject to appropriations.
Senate bill
No similar provision.
Conference Substitute
House bill, but with no amounts specified for the fees.

AIRPORT MASTER PLANS

H131/S--

House bill
Section 131 requires that airport master plans and systems
include in their goals a requirement to consider passenger
convenience, airport ground access, and access to airport
facilities.
Senate bill
No similar provision.
Conference Substitute
House bill.

AEROTROPOLIS TRANSPORTATION SYSTEMS

H132/S3--

House bill
Section 132 directs the Secretary of Transportation to
encourage development of aerotropolis transportation systems,
which are planned and coordinated multimodal freight and
passenger transportation networks that provide efficient,
cost-effective, sustainable, and intermodal connectivity to a
defined region of economic significance centered around a
major airport, as determined by the Secretary.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

AIRPORT IMPROVEMENT PROGRAM (AIP) DEFINITIONS

H133/S208(j),215,714(a)
House bill
Section 133(a)(1) broadens eligibility for AIP spending to
include firefighting and revenue equipment at an airport that
serves scheduled passenger operations of air carrier aircraft
designed for more than nine passengers instead of the current
limit of 20.
Section 133(a)(2) allows AIP funds to be used for glycol
recovery vehicles.
Section 133(a)(3) permits AIP funds to be used for mobile
refueler parking within a fuel farm at a non-primary airport,
if required by an Environmental Protection Agency (EPA) rule,
terminal development costs, air conditioning/heating/
electricity from terminal facilities, and equipment for
parked aircraft to reduce energy consumption.
Section 133(b) amends the definition of airport planning to
include an environmental management system and recycling.
Section 133(c) defines ``general aviation airport.''
Section 133(d) defines ``revenue producing aeronautical
support facilities,'' which allows non-primary airports to
use their entitlements to build or rehabilitate new
facilities that can help generate revenue.
Section 133(e) redefines ``terminal development'' to
include development of an airport passenger terminal
building, including gates and access roads and walkways.
Senate bill
Section 208(j) is the same provision as House section
133(a)(3).
Section 215 is the same provision as House section
133(a)(2).
No similar provision.
No similar provision.
Section 714(a) is the same provision as House section
133(b).
No similar provision.
No similar provision.
Conference Substitute
House bill.

RECYCLING PLANS FOR AIRPORTS

H134/S714(b)

House bill
Section 134 requires airport master plans to: address the
feasibility of solid waste recycling at an airport,
minimizing the generation of waste, operation and maintenance
requirements, the review of waste management contracts, and
the potential for cost savings or the generation of revenue.
Senate bill
Section 714(b) is a similar provision, but includes
additional requirements for master plans.
Conference Substitute
House bill.

CONTENTS OF COMPETITION PLANS

H135/S--

House bill
Section 135 removes requirements for ``patterns of air
services'' and ``airfare levels (as compiled by DOT) compared
to other large airports'' from the requirements of a
competition plan for PFC charges.
Senate bill
No similar provision.
Conference Substitute
House bill.

GRANT ASSURANCES

H136/S203

House bill
Section 136(a),(b) permits the Secretary of Transportation
to allow grants to be used for relocating or replacing
existing airport facilities.
Section 136(b)(1) revises requirements on acquiring lands
to permit an airport to keep any funds obtained from the sale
of lands acquired for noise compatibility purposes and
reinvest those funds in the airport or transfer those funds
to another airport consistent with the statute. It removes a
requirement to return the proportion equal to the government
share in acquiring the land to the Secretary.
Section 136(b)(2) sets the priorities which apply to the
Secretary's decision to approve reinvestment or transfer of
proceeds from the sale of land acquired for noise
compatibility. Priorities are: 1) reinvestments in an
approved noise compatibility project; 2) reinvestment in an
approved project that is eligible for funding; 3)
reinvestment in an approved airport development project that
is eligible for funding under Sec. 47114, 47115, or 47117; 4)
transfer to a sponsor of another public airport to be
reinvested in an approved noise compatibility project; and 5)
deposit into the Airport and Airway Trust Fund.
Section 136(c) makes a technical correction to
47107(e)(2)(iii) by deleting ``the Fund'' and inserting ``the
Airport and Airway Trust Fund established under section 9502
of the Internal Revenue Code of 1986.''
Section 136(d) makes the Competition Disclosure Requirement
pilot program permanent. No similar provision.
Senate bill
Section 203 is a similar provision.
Section 203 is similar, but allows airports that receive
improvement grants for the purchase of land to lease the land
and develop the land in a manner compatible with noise
buffering purposes.
Section 203 adds that a lease by an airport owner or
operator of land acquired for a noise compatibility purpose
using an improvement grant will not be considered a disposal,
and allows revenues from the lease to be used for ongoing
airport operational and capital purposes.
No similar provision.
No similar provision.
Section 203 adds the phrase ``serving as noise buffer
land'' to clarify that such land is one of the land
acquisitions subject to disposal at the earliest practicable
time after it is no longer needed for the intended noise
compatibility purpose.
Conference Substitute
House bill with the language from the Senate bill section
203 related to ``serving as noise buffer land'' added.

AGREEMENTS GRANTING THROUGH-THE-FENCE ACCESS TO GENERAL AVIATION
AIRPORTS

H137/S--

House bill
Section 137 requires that the sponsor of a general aviation
airport will not be in violation of a grant assurance as a
condition for the receipt of federal funds solely because the
sponsor entered into an agreement to allow a person, who owns
residential real property adjacent to the airport, access to
the airfield of the airport.
Senate bill
No similar provision.
Conference Substitute
House bill modified to include language in the agreement
between an airport sponsor

[[Page H271]]

and a property owner prohibiting any aircraft refueling from
occurring on that property, and includes a definition of
``general aviation airport''.

GOVERNMENT SHARE OF PROJECT COSTS

H138/S204,207

House bill
Section 138 adds a special rule for transition from small
hub to medium hub which limits the government share of
funding to 90 percent for the first two years following the
change in status. The government share is set at 95 percent
for a project at an airport that is receiving subsidized air
service and is located in an area that meets one or more of
the criteria for economically depressed communities
established by the Secretary of Commerce.
Senate bill
Section 204(a) establishes a special rule to allow for
small hub airports that have increased operations and
therefore are being reclassified as medium hub airports to
retain their eligibility for two years at up to a 95 percent
government share of projects costs.
Section 204(b) extends the project cost for transitioning
Airport Improvement Project (AIP) projects through FY 2011.
Section 207 sets the government share at 95 percent for
certain projects at small airports if it is funded by a grant
issued to, and administered, by a State under the State block
grant program or for any project at an airport other than a
primary airport having at least 0.25 percent of the total
number of passenger boardings at all commercial service
airports.
Conference Substitute
House bill.

ALLOWABLE PROJECT COSTS

H139/S214,205

House bill
Section 139(a) amends allowable AIP project costs to
include costs for airport development incurred prior to the
execution of the grant agreement if: 1) the cost is incurred
in the same fiscal year as the execution of the grant
agreement; 2) the cost was incurred before execution due to a
short construction season in the vicinity of the airport; 3)
the cost is in accordance with the approved airport layout
plan; 4) the sponsor notifies the Secretary of Transportation
before commencing work; 5) the sponsor has an alternative
funding source available to fund the project; and/or 6) the
sponsor's decision to proceed with the work does not affect
the priority assigned to the project by the Secretary for the
allocation of discretionary funds.
Section 139(b) amends allowable AIP project costs to
include costs incurred to improve the efficiency of an
airport building (i.e., a measure designed to meet one or
more of the criteria for being considered a high-performance
green building as set forth under the Energy Independence and
Security Act of 2007), and: 1) the measure is for a project
for airport development; 2) the measure is for an airport
building that is otherwise eligible for construction
assistance; and/or 3) if the measure results in an increase
in initial project costs, the increase is justified by
expected savings over the life cycle of the project.
Section 139(c) provides the Secretary discretion in
determining that the costs of relocating or replacing and
airport-owned facility are allowable, to those instances in
which: 1) the Government's share will be paid with funds
apportioned to the airport sponsor; 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 the change is beyond the control of the
sponsor.
Section 139(d) clarifies that the Secretary may determine
that the cost of constructing revenue-producing aeronautical
support facilities at non-primary airports is allowable.
No similar provision.
Senate bill
Section 214 is a similar provision to House section 142(a),
but requires the Secretary to consider the short construction
season in some areas when selecting projects for AIP
discretionary funding.
No similar provision.
Section 205 is a similar provision to House section 139(c).
No similar provision.
Section 205 includes a requirement for the Administrator to
analyze the conclusions of ongoing studies with commercially
available bird radar systems within 180 days of enactment
and, if it is determined that the systems have no negative
impact on existing navigational aids and that the expenditure
is appropriate, shall allow purchase of bird-detecting radar
systems as an allowable airport development project cost. If
the Administrator concludes that such radar systems will not
improve or will negatively impact airport safety, the
Administrator shall issue a report explaining that
determination.
Conference Substitute
House bill with the inclusion of Senate language on bird
radar systems and short construction season.

VETERANS' PREFERENCE

H140/S208(b)

House bill
Section 140 amends the definition of ``Vietnam-era
veteran'' and adds veterans from the Afghanistan/Iraq
conflict and Persian Gulf War to the definition of those
veterans eligible for employment preference on Airport
Improvement Program (AIP) projects. It adds a provision
requiring that a contract involving labor for carrying out an
airport development project under a grant agreement include a
preference for the use of small business concerns owned and
controlled by disabled veterans.
Senate bill
Section 208(b) is a similar provision.
Conference Substitute
House bill.

MINORITY AND DISADVANTAGED BUSINESS PARTICIPATION

H141,822/S715,703

House bill
Section 141 requires the Secretary to establish, within a
year of enactment, a mandatory training program for certain
airport agents or officials on certifying whether a small
business concern qualifies as a small business concern owned
and controlled by socially and economically disadvantaged
individuals under the Disadvantaged Business Enterprise (DBE)
Program.
Section 822 requires the Inspector General of the
Department of Transportation (DOT IG) to report on the number
of new small business concerns owned and controlled by
socially and economically disadvantaged individuals,
including those owned by veterans, that participated in the
programs and activities funded using the amounts made
available under this Act.
No similar provision.
No similar provision.
Senate bill
Section 715(c) is a similar provision to House section 141.
Section 703 authorizes the appointment of three staff to
implement the training program.
Section 715(a), (b), (d), (e), (f) adjusts the personal net
worth cap for individuals participating in the DBE program.
Section 715(g) directs the Secretary to create a program to
eliminate barriers to small business participation in
contract and issue a final rule within one year of enactment.
Conference Substitute
The conference committee agreed to a modified and merged
version of House and Senate bills, including findings of the
Senate bill, with clarifications, recounting evidence of
discrimination and concluding that a compelling need exists
for continuation of the airport disadvantaged business
enterprise (DBE) program and the airport concessions DBE
program.

SPECIAL APPORTIONMENT RULES

H142/S208(i), (h)

House bill
Section 142(a) gives the Secretary of Transportation
authority to apportion to an airport sponsor in a fiscal year
an amount equal to the minimum apportionment available to the
airport sponsor in the previous fiscal year, if the airport
received scheduled or unscheduled air service from a large
certificated carrier in the calendar year used to calculate
the apportionment, and the airport had more than 10,000
passenger boardings in the calendar year used to calculate
the apportionment.
Section 142(b) continues a special apportionment for
airports that remain affected by the decrease in passengers
following the terrorist attacks of September 11, 2001,
through 2012.
No similar provision.
Senate bill
Section 208(i) is a similar provision to House section
142(a) and (b).
Section 208(h) amends the special apportionment categories
by change the special apportionment from ``thirty five
percent'' to a fixed amount of ``$300 million'' annually for
grants for various airport noise, compatible land use, and
Clean Air Act compliance projects. It adds certain water
quality mitigation projects to those on which such funds may
be expended.
Conference Substitute
House Bill, section 142 with modified dates changed from
``2011 and 2012'' to ``2012 and 2013'', and Senate section
208(h) modified with the substitution of ``35 percent, but
not more than $300 million''.

UNITED STATES TERRITORIES MINIMUM GUARANTEE

H143/S--

House bill
Section 143 directs the Secretary of Transportation to
apportion AIP amounts for airports in Puerto Rico, does not
prohibit the Secretary from making project grants for
airports in Puerto Rico from discretionary funds.
Senate bill
No similar provision.
Conference Substitute
House bill modified to include language that addresses
Puerto Rico and other U.S. territories.

APPORTIONMENT

H144/S--

House bill
Section 144 resets the apportionment trigger from $3.2
billion to $3 billion.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

REDUCING APPORTIONMENTS

H145/S--

House bill
Section 145 addresses inequitable application of
apportionment fees charged to passengers in the state of
Hawaii.

[[Page H272]]

Senate bill
No similar provision.
Conference Substitute

House bill.

MARSHALL ISLANDS, MICRONESIA, AND PALAU

H146/S704(a)
House bill
Section 146 makes the Marshall Islands, Micronesia and
Palau eligible for AIP discretionary grants and funding from
the Small Airport Fund.
Senate bill
Section 704(a) is a similar provision.
Conference Substitute
House bill.

DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS

H147/S220, 212

House bill
Current law allows the Secretary of Transportation to
designate current or former military airports eligible for
grants under the Military Airport Program (MAP). Section
147(a) adds to the items that must be considered to approve a
grant the requirement that it preserves or enhances minimum
airfield infrastructure facilities at former military
airports to support emergency diversionary operations for
transoceanic flights in locations in U.S. jurisdiction or
control, and where there is a lack of airports within the
distance required by regulations.
Section 147(b) allows up to three general aviation airports
to participate in the FAA's Military Airport Program.
Section 147(c) makes current or former military airports
eligible to be considered for AIP funding if that airport is
found to be critical to the safety of trans-oceanic air
traffic.
Senate bill
No similar provision.
Section 220 is a similar provision to House section 147(b)
and, however it allows a total of three general aviation
airports to participate in the Military Airport Program.
Section 212 is a similar provision to House section 147(c).
Conference Substitute
House bill modified.

CONTRACT TOWER PROGRAM

H148/S432

House bill
Section 148(a) directs the Secretary of Transportation to
extend the low activity (Visual Flight Rules) level I air
traffic control tower (ATC) contract program to other low-
activity towers meeting the requirements set forth by the
Secretary of Transportation where the airport operator has
requested to participate in the program.
Section 148(a) also adds a special rule which alleviates
the responsibility of the airport sponsor or State or local
government to paying the portion of the costs that exceed the
benefits for a period of 18 months after the Secretary
determines that a level I tower operating under this program
has a benefit to cost ratio of less than 1.0.
Section 148(b) caps the maximum allowable cost share for an
airport with fewer than 50,000 annual passenger enplanements
at 20 percent of the cost of operating an ATC tower under the
contract tower program, and sunsets this requirement on
September 30, 2014.
Section 148(b) also permits the Secretary to use excess
funds from the contract tower program intended for level I
towers to fund activities for non-approach contract towers.
Section 148(c) increases the maximum amount of funds that
can be expended in carrying out the Contract Tower Program
for non-approach contract towers at not more than $8.5
million for each of FYs 2011 through 2014.
Section 148(d) increases the limitation on the amount of
the federal share of the cost of construction of a non-
approach control tower from $1.5 million to $2 million.
Section 148(e) requires the establishment of uniform safety
standards and requirements for safety assessments of ATC
towers that receive funding.
Senate bill
Section 432(b) is the same provision as House section
148(b) but caps the maximum allowable local share at 20
percent.
Section 432(a) is the same provision as House section
148(a).
Section 432(c) is a similar provision to House section
148(c), but it specifies that not more than $9.5 million in
FY 2010 and not more than $10 million in FY 2011 can be used.
Section 432(d) is the same provision as House section
148(d).
Section 432(e) is the same provision as House section
148(e).
Conference Substitute
House bill modified by adjusting the authorization levels,
and by deleting: (1) language capping the local cost share at
20 percent: and (2) provisions requiring the Secretary of
Transportation to expand the Contract Tower Program. Under
the agreement (in the modified section), the Secretary
retains the authority to expand the program.

RESOLUTION OF DISPUTES CONCERNING AIRPORT FEES

H149/S431

House bill
Section 149 updates current law that addresses the
resolution of disputes concerning airport fees by the
Secretary of Transportation to include foreign air carriers
in payment by airports under protest.
Senate bill
Section 431 is the same provision.
Conference Substitute

House bill.

SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR

H150/S206
House bill
Section 150(a) exempts funds from the sale of an airport to
a public sponsor from use restrictions. This exemption
applies where the Secretary of Transportation approves the
sale, federal grants are provided for any portion of the
public sponsor's acquisition of the airport, and certain
amounts of remaining airport improvement grants are repaid to
the Secretary.
Section 150(a) also specifies that recovery of grant funds
are treated as recovery of prior year obligations.
Section 150(b) specifies that this section is applicable to
grants issued on or after October 1, 1996.
Senate bill
Section 206 is a similar provision to House section 150(a),
but it specifies that proceeds are repaid to the Airport and
Airway Trust Fund for airport acquisitions.
No similar provision.
Section 206 is an identical provision to House section
150(b).
Conference Substitute
House bill.

REPEAL OF CERTAIN LIMITATIONS ON METROPOLITAN WASHINGTON AIRPORTS
AUTHORITY (MWAA)

H151/S718

House bill
Section 151 repeals the limitations on Metropolitan
Washington Aviation Authority to apply for Airport
Improvement Program grants and collect Passenger Facility
Charges.
Senate bill
Section 718 is a similar provision.
Conference Substitute
House bill.

MIDWAY ISLAND AIRPORT

H152/S704(b)

House bill
Section 152 provides a four-year extension for the
Secretary of Transportation to enter into a reimbursable
agreement with the Secretary of the Interior to provide AIP
discretionary funds for airport development projects at
Midway Island Airport through FY 2014.
Senate bill
Section 704(b) is a similar provision, but the extension
would expire at the end of the term of the Senate bill in FY
2011.
Conference Substitute
House bill.

MISCELLANEOUS AMENDMENTS

H153/S208(a) (c) (e) (f) (g)

House bill
Section 153(a) makes a technical change to requirements for
the National Plan of Integrated Airport Systems (NPIAS),
which comprises all commercial service airports, all reliever
airports, and selected general aviation airports.
Section 153(b) permits the Secretary of Transportation to
approve a project for terminal development (including
multimodal terminal development) in a nonrevenue-producing
public-use area of a commercial service airport if the
sponsor certifies that the airport: (1) has all the safety
equipment required and security equipment required by
regulation; (2) provides access for passengers to the area of
the airport boarding or exiting aircraft that are not air
carrier aircraft; (3) costs are directly related to moving
passengers and baggage in air commerce within the airport;
and (4) meets the terms necessary to protect the interest of
the government.
Section 153(b) directs the Secretary to approve as
allowable costs of terminal development (including multimodal
terminal development) in a revenue-producing area and
construction, reconstruction, repair and improvement in a
non-revenue producing parking lot under certain
circumstances.
Section 153(b) prohibits the Secretary from distributing
more than $20 million from discretionary funds for terminal
development projects at a non-hub airport or a small hub
airport that is eligible to receive discretionary funds.
Section 153(c) makes technical changes to the annual
reporting requirements by moving the due date to June 1 of
each year. Also, it removes the first four report
requirements and replaces them with: (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; and (4) the allocation of
appropriations.
Section 153(d) makes a technical correction to the emission
credits provision.
Section 153(e) makes a technical correction to section
Sec. 46301(d)(2).
Section 153(f) makes a conforming amendment to
Sec. 40117(a)(3)(B) and 47108(e)(3).
Section 153(g) makes a technical correction to the surplus
property authority section.
Section 153(h) updates the definition of ``Congested
Airport'' to include the FAA's Airport Capacity Benchmark
Report of 2004 ``or table 1 of the Federal Aviation
Administration's most recent airport capability

[[Page H273]]

benchmark report, as well as the definition of ``Joint Use
Airport''.
Senate bill
Section 208(a) is the same as House section 153(a).
No similar provision.
No similar provision.
No similar provision.
Section 208(c) is the same as House section 153(c).
Section 208(e) is the same as House section 153(d).
No similar provision.
Section 208(f) is a similar to House section 153(g).
Section 208(g) is a similar to House section 153(h), but
changes definition for ``Joint Use Airport''.
Conference Substitute
House bill.

EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND USE PLANNING AND
PROJECTS BY STATE AND LOCAL GOVERNMENTS

H154/S--
House bill

Section 154 extends the grant authority for compatible land
use planning and projects by State and local governments
until September 30, 2014.
Senate bill
No similar provision.
Conference Substitute
House bill.

PRIORITY REVIEW OF CONSTRUCTION PROJECTS IN COLD WEATHER STATES

H155/S724

House bill
Section 155 instructs the Administrator to schedule reviews
of construction projects that are prevented by weather from
being carried out before May 1 of each year, or as early as
possible.
Senate bill
Section 724 directs the Administrator to review, as early
as possible, proposed airport projects in those states where,
during a typical calendar year, construction could not begin
until May 1.
Conference Substitute
House bill.

STUDY ON NATIONAL PLAN OF INTEGRATED AIRPORT SYSTEMS (NPIAS)

H156/S--

House bill
Section 156 requires the Secretary of Transportation to
study and evaluate the formulation of the National Plan of
Integrated Airport Systems (NPIAS) and report to Congress on
the findings and recommended changes for formulating the
NPIAS and methods to determining the amounts apportioned to
airports. The study is to address the following: 1) criteria
used for including airports in the plan; 2) changes in
airport capital needs as shown in the 2005-2009 and 2007-2011
plans, compared with the amounts apportioned or otherwise
made available to individual airports between 2005 and 2010;
3) a comparison of the amounts received by airports under the
AIP in airport apportionments, State apportionments, and
discretionary grants during fiscal years with capital needs
as reported in the plan; 4) the effect of transfers of
airport apportionments under title 49 United States Code
(U.S.C.); 5) an analysis on the feasibility and advisability
of apportioning amounts under 47114(c)(1) to the sponsor of
each primary airport for each fiscal year an amount that
bears the same ratio to the amount subject to the
apportionment for FY 2009 as the number of passenger
boardings at the airport during the prior calendar year bears
to the aggregate of all passenger boardings at all primary
airports during that calendar year; 6) a documentation and
review of the methods used by airports to reach the 10,000
passenger enplanement threshold; and 7) any other matters
pertaining to the plan that the Secretary determines
appropriate.
Senate bill
No similar provision.
Conference Substitute
House bill.

TRANSFERS OF TERMINAL AREA AIR NAVIGATION EQUIPMENT TO AIRPORT SPONSORS

H157/S--

House bill
Section 157 establishes a pilot program to allow the
Administrator to transfer terminal area air navigation
equipment to airport sponsors at a specified number of
airports. The airport sponsors must assure the Administrator
that the sponsors will operate and maintain the equipment,
permit inspections by the Administrator, and will replace
equipment as needed. This transfer will include all rights,
title and interests of the U.S. to the sponsor at no cost to
the sponsor.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

AIRPORT PRIVATIZATION PROGRAM

H158/S--

House bill
Section 158(a) amends current law relating to specific
provisions for issuance of exemptions in connection with a
transfer of airport operation to a private owner. This
section authorizes the Secretary of Transportation to expand
the number of airports from five to ten airports. The
Secretary is authorized to exempt the selling airport sponsor
from the revenue diversion prohibition after the Secretary
has consulted the air carrier serving the primary airport,
and in the case of non-primary airport, with at least 65
percent of owners of aircraft based at that airport (thereby
eliminating the existing requirement that the selling airport
sponsor obtain the approval of at least 65 percent of the air
carriers serving the airport before the revenue diversion
prohibition can be waived.)
Section 158(b) removes the requirement that the Secretary
must ensure that the airport fee imposed on air carriers will
not increase more than inflation; the percent increase on
fees to general aviation will not exceed the percentage of
fees imposed on air carriers; and collective bargaining
agreements will not be abrogated by sale or lease. It
prohibits an airport from imposing a fee on a domestic or
foreign air carrier for a return on investment or recovery of
principal with respect to consideration paid to public agency
for the lease unless the air carriers approve.
Senate bill
No similar provision.
Conference Substitute
House bill modified by dropping all language except
language on expansion of the airport privatization program
from five to ten airports.

AIRPORT SECURITY PROGRAM

H--/S208(d)

House bill
No similar provision.
Senate bill
Section 208(d) sunsets the Airport Security Program.
Conference Substitute
House bill.

MINIMUM GUARANTEE

H--/S217

House bill
No similar provision.
Senate bill
Section 217 amends the Alaska minimum guarantee to permit
the Secretary of Transportation to apportion to the local
authority of a U.S. Territory the difference between the
amount apportioned to the territory and 1.5 percent of the
total amount apportioned to all airports under subsections
(c) and (d) of 47144.
Conference Substitute
Senate bill provision incorporated in the section entitled
``United States territories minimum guarantee''.

RESEARCH IMPROVEMENT FOR AIRCRAFT

H--/S216

House bill
No similar provision.
Senate bill
Section 216 expands the type of research that the
Administrator may conduct or supervise to include research to
support programs designed to reduce gases and particulates
emitted by aircraft.
Conference Substitute
House bill.

MERRILL FIELD AIRPORT, ANCHORAGE, ALASKA

H--/S218

House bill
No similar provision.
Senate bill
Section 218 modifies current federal restrictions at
Merrill Field Airport in Anchorage, Alaska to facilitate
airport and federal highway development.
Conference Substitute
Senate bill dropped due to the inclusion of language
addressing this provision in the section entitled ``Release
from Restrictions''.

INCLUSION OF MEASURES TO IMPROVE THE EFFICIENCY OF AIRPORT BUILDINGS

H--/S222

House bill
No similar provision.
Senate bill
Section 222 specifies that AIP funds can be used for
updating buildings to meet high-performance green building
standards.
Conference Substitute
House bill.

TITLE II--NEXT GENERATION AIR TRANSPORTATION SYSTEM AND AIR TRAFFIC
CONTROL MODERNIZATION

DEFINITIONS

H201/S327

House bill
Section 201 defines the terms: ``NextGen,'' ``Automatic
Dependent Surveillance Broadcast (ADS-B)'', ``ADS-B In'',
``ADS-B Out,'' ``Area Navigation (RNAV)'', and ``Required
Navigation Performance (RNP).''
Senate bill
Section 327 sets out definitions for ``Administration'',
``Administrator'', ``NextGen,'' and the ``Secretary''.
Conference Substitute
House bill.

NEXTGEN DEMONSTRATIONS AND CONCEPTS

H202/S--

House bill
Section 202 directs the Secretary of Transportation when
allocating funds to give priority to NextGen-specific
programs.

[[Page H274]]

Senate bill
No similar provision.
Conference Substitute
House bill with minor modification.

CLARIFICATION OF AUTHORITY TO ENTER INTO REIMBURSABLE AGREEMENTS

H203/S304

House bill
Section 203 clarifies FAA's existing authority to perform
work for other agencies with or without reimbursement.
Senate bill
Section 304 is a similar provision.
Conference Substitute
House bill.

CHIEF NEXTGEN OFFICER

H204/S302,301

House bill
Section 204 establishes a new position within the FAA--the
Chief NextGen Officer (CNO)--who would be responsible for the
implementation of NextGen programs. The Chief NextGen Officer
shall be answerable to the Administrator and appointed for a
term of 5 years to serve at the pleasure of the
Administrator. The section directs the CNO to coordinate
NextGen implementation with the Office of Management and
Budget and other federal agencies. It requires the CNO to
prepare an annual NextGen implementation plan.
Senate bill
Section 302 is a similar provision, but with a technical
difference and a requirement that the CNO oversee the Joint
Planning and Development Office's (JPDO) facilitation of
cooperation among all federal agencies whose operations and
interests are affected by NextGen implementation.
Section 301 replaces current Management Advisory Council
and Air Traffic Services Committee with one governance body--
the Air Traffic Control Modernization Oversight Board.
Conference Substitute
House bill.

DEFINITION OF AIR NAVIGATION FACILITY

H205/S310

House bill
Section 205 updates and broadens the definition of an air
navigation facility to clarify that F&E funding may be used
for many capital expenses directly related to the acquisition
or improvement of buildings, equipment, and new systems
related to the national airspace system and NextGen.
Senate bill
Section 310 is a similar provision.
Conference Substitute
House bill.

CLARIFICATION TO ACQUISITION REFORM AUTHORITY

H206/S305

House bill
Section 206 repeals a provision with limits on ``other than
competitive procedures'' that conflicts with the FAA's 1996
procurement reform.
Senate bill
Section 305 is a similar provision.
Conference Substitute
House bill.

ASSISTANCE TO FOREIGN AVIATION AUTHORITIES

H207/S306
House bill
Section 207 clarifies the FAA's current authority to
provide air traffic services abroad, whether or not the
foreign entity is private or governmental, and that the FAA
may participate in any competition to provide such services.
It clarifies that the Administrator may allow foreign
authorities to pay in arrears rather than in advance, and
that any payment for such assistance may be credited to the
current applicable appropriations account.
Senate bill
Section 306 is a similar provision.
Conference Substitute
House bill.

NEXT GENERATION AIR TRANSPORTATION SYSTEM JOINT PLANNING AND
DEVELOPMENT OFFICE

H208/S309(a)

House bill
Section 208(a) elevates the Director of the Joint Planning
and Development Office (JPDO) to the level of Associate
Administrator for NextGen, reporting directly to the
Administrator. The responsibilities of the Director will
include: 1) establishing specific quantitative goals for the
safety, capacity, efficiency, performance, and environmental
impacts of each phase of NextGen planning and development
activities; 2) working to ensure global interoperability of
NextGen; 3) working to ensure the use of weather information
and space weather information in NextGen as soon as possible;
4) overseeing, with the Administrator and in consultation
with the Chief NextGen Officer (CNO), the selection of
products or outcomes of Research, Engineering and Development
activities that should be moved to a demonstration phase; and
5) maintaining a baseline modeling and simulation environment
for testing and evaluating alternative concepts to satisfy
NextGen enterprise architecture requirements.
Section 208(a) directs the Associate Administrator for
NextGen to also be a voting member on the Joint Resources
Council.
Section 208(a) requires the JPDO to coordinate NextGen
activities with OMB.
Section 208(a) requires the Department of Defense (DOD),
Department of Homeland Security (DHS), Department of
Commerce, and the National Aeronautics and Space
Administration (NASA) to designate a senior official to work
with the FAA on NextGen implementation.
Section 208(b) requires the JPDO to develop an Integrated
Work Plan that will outline the activities required by
partner agencies to achieve NextGen.
Section 208(c) directs FAA to annually publish a NextGen
Implementation Plan.
Section 208(d) requires the head of JPDO to develop
contingency plans for dealing with the degradation of the
system in the event of a disaster or failure.
Senate bill
No similar provision.
No similar provision.
No similar provision.
Section 309(a) is a similar provision as House section
208(a), but creates a NextGen Implementation Office, which
will be established by FAA, DOD, NASA, Commerce, DHS and
other applicable agencies.
No similar provision.
No similar provision.
No similar provision.
Conference Substitute
House bill.

NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY COMMITTEE

H209/S309(b)

House bill
Section 209 requires each agency involved in implementing
NextGen initiatives to participate in an Air Transportation
Senior Policy Committee. This committee will meet biannually
and will be responsible for producing an annual report
summarizing the progress made in carrying out the NextGen
integrated work plan. The Secretary of Transportation is
directed to publish an annual report on the date of
submission of the President's Budget, summarizing the
progress made in carrying out the integrated work plan.
Senate bill
Section 309(b) is a similar provision but with a
requirement that the Senior Policy Committee meet once each
quarter.
Conference Substitute
House bill.

IMPROVED MANAGEMENT OF PROPERTY INVENTORY

H210/S311

House bill
Section 210 clarifies FAA's current authority to purchase
and sell property needed for airports and air navigation
facilities, and includes the authority to retain funds
associated with disposal of property.
Senate bill
Section 311 is a similar provision, but does not allow
these funds to be used to offset costs of property disposal.
Conference Substitute
House bill.

AUTOMATIC DEPENDENT SURVEILLANCE BROADCAST SERVICES

H211/S315

House bill
Section 204 requires an annual audit by the DOT IG of the
FAA's ADS-B program to assist Congress in creating FAA
accountability for implementing the ADS-B program. It
directs the Administrator to initiate a rulemaking
proceeding within one year after the date of enactment to
issue guidelines and regulations relating to ADS-B In
technology. Requires the Chief NextGen Officer to verify
that the necessary ground infrastructure is installed and
functioning properly, certification standards have been
approved, and appropriate operational platforms interface
safely and efficiently before the date on which all
aircraft are required to be equipped with ADS-B In
technology. The Administrator is directed to develop, in
consultation with employee and industry groups, plans for
the use of ADS-B technology, including testing, controller
training, and policy for early aircraft equipage.
Senate bill
Section 315 is a similar provision, but requires a defined
budget and the identification of actual benefits to national
airspace system (NAS) users including small and medium-sized
airports and the general aviation community. It requires two
rulemakings by the FAA: 1) to complete a rulemaking procedure
within 45 days of enactment and mandate that all aircraft
should be equipped with ADS-B Out technology by 2015; and 2)
to initiate a rulemaking procedure on ADS-B In technology and
require all aircraft to be equipped with ADS-B In by 2018.
The FAA is required to create a plan for ADS-B technology use
by air traffic control by 2015, including a test of ADS-B
prior to 2015 within the plan. It sets conditional extensions
of the deadline for equipping aircraft with ADS-B technology.
Conference Substitute
House bill modified to include an additional requirement in
the DOT IG review to identify ``any potential operational or
workforce changes resulting from deployment of ADS-B''.

[[Page H275]]

ACCELERATION OF NEXTGEN TECHNOLOGIES

H213/S314,510

House bill
Section 213(a) requires the Administrator to publish a
report within six months (but after consultation with
employee groups) that includes how FAA will develop: 1) Area
Navigation and Required Navigation Performance (RNAV/RNP)
procedures at 35 Operational Evolution Partnership (OEP)
airports identified by FAA; 2) a description of requirements
to implement them; 3) an implementation plan; 4) an
assessment of the cost/benefit for using third parties to
develop procedures; and 5) a process for creating future RNA/
RNP procedures. (The FAA is directed to implement 30 percent
of these procedures within 18 months, 60 percent within 36
months, and 100 percent by June 2015.
Section 213(b) establishes a charter with Performance Based
Navigation ARC as necessary to establish priorities in
navigation performance and area navigation procedures based
on potential safety and efficiency benefits to the NAS,
including small and medium hub airports.
Section 213(c) states that performance and area navigation
procedures under this section shall be presumed covered by
categorical exclusion in Chapter 3 of FAA Order 1050.1E.
Section 213(d) directs the Administrator to submit a
development plan in one year for nationwide data
communications systems.
Section 213(e) instructs the Administrator to outline in
the NextGen Implementation Plan what utilization of ADS-B,
RNP and other technologies included as part of NextGen
implementation will display position of aircraft more
accurately, and the feasibility of reducing aircraft
separation standards. Should it be deemed feasible to reduce
aircraft separation standards, the Administrator shall
produce a timetable for implementation of such standards.
Section 213(f) establishes a program in which the
Administration will utilize third parties to develop air
traffic procedures.
Senate bill
Section 314 directs the Administrator to publish a report
within six months, after consultation with stakeholders,
including the development of: 1) RNP/ RNAV procedures at 137
airports; 2) a description of the activities required for
their implementation; 3) an implementation plan that includes
baseline and performance metrics; 4) assessment of the
benefits/costs of using third parties to develop the
procedures; and 5) a process for the creation of future RNP
and RNAV procedures. The Administrator must implement 30
percent of the procedures within 18 months of enactment, 60
percent within 36 months of enactment, and 100 percent by
2014. The Administrator is directed to create a plan for the
implementation of procedures at the remaining airports across
the country. It would require 25 percent of the procedures at
these airports to be implemented within 18 months after
enactment, 50 percent within 30 months after enactment; 75
percent within 42 months after enactment, and 100 percent
before 2016. The charter of the Performance Based Navigation
ARC is extended and directs it to establish priorities for
development of the RNP/RNAV procedures based on potential
safety and congestion benefits. It would require that the
process of the development of such procedures be subject to a
previously established environmental review process. The FAA
is directed to provide Congress with a deployment plan for
the implementation of a nationwide data communications system
to support NextGen air traffic control and a report
evaluating the ability of NextGen technologies to facilitate
improved performance standards for aircraft in the NAS.
Conference Substitute
House bill modified to change language to separate OEP and
non-OEP airports to establish separate timelines and
milestones, to require the FAA to provide a categorical
exclusion for RNP/RNAV procedures that would lead to a
reduction in aircraft fuel consumption, emissions and noise
on an average per flight basis, and to direct the
Administrator to establish a program under which the
Administrator is authorized to utilize the services of
qualified third parties in the development, testing, and
maintenance of flight procedures.

DOT INSPECTOR GENERAL REVIEW OF OPERATIONAL APPROACH PROCEDURES BY
THIRD PARTY

H--/S510(b)

House bill
No similar provision.
Senate bill
Section 510(b) directs the DOT IG review and report to
Congress on FAA's oversight of third party development of
flight procedures, the extent of new flight procedures
developed by third parties, and whether FAA has the resources
to develop these procedures without the use of third parties.
Conference Substitute

House bill.

PERFORMANCE METRICS

H214/S317

House bill
Section 214 requires the FAA, within 180 days after
enactment, to establish and track NextGen related performance
metrics within the national airspace system and to submit an
annual report to Congress based on the results of the study.
Senate bill
Section 317 is a similar provision, but it has some
different metrics including ones to demonstrate reduced fuel
burn and emissions.
Conference Substitute
House bill. The conference committee believes that
performance metrics are the best way to evaluate the FAA's
progress in implementing NextGen. With these metrics,
Congress and the public will be able to determine the
Administration's real progress in the delivery of NextGen
benefits, which is the goal of the NextGen program.

CERTIFICATION STANDARDS AND RESOURCES

H215/S318

House bill
Section 215 requires the FAA to develop a plan to
accelerate the certification of NextGen technologies.
Senate bill
Section 318 is a similar provision, but it prohibits the
FAA from making any distinction between publicly and
privately owned equipment when determining certification
requirements.
Conference Substitute
House bill modified to include language prohibiting the FAA
from making any distinction between publicly and privately
owned equipment when determining certification requirements.

SURFACE SYSTEMS ACCELERATION

H216/S321

House bill
Section 216 directs the Chief Operation Officer of the Air
Traffic Organization (ATO) to: 1) evaluate Airport Surface
Detection Equipment-Model X (ASDE-X); 2) evaluate airport
surveillance technologies; 3) accelerate implementation of
ASDE-X; and 4) carry out additional duties as required by the
Administrator. The Administrator is required to consider
options for expediting the certification of Ground-Based
Augmentation System (GBAS) technology, and develop plans to
utilize such a system at the 35 OEP airports by September 30,
2012.
Senate bill
Section 321 is a similar provision, however it directs the
FAA to consider expediting the certification of Ground Based
Augmentation Systems (GBAS) technology and develop a plan to
utilize it at the 35 OEP airports by September 30, 2012.
Conference Substitute
House bill.

INCLUSION OF STAKEHOLDERS IN AIR TRAFFIC CONTROL MODERNIZATION PROJECTS

H217/S322

House bill
Section 217 requires the Administrator to create a process
for including union employees in the planning, development,
and deployment of air traffic control projects. Within 180
days of enactment, the FAA must report to Congress on
implementation of this provision.
Senate bill
Section 322 is a similar provision, but it provides travel
and per diem expenses for the employees.
Conference Substitute
House bill modified, directing the Administrator to include
qualified employees selected by each collective bargaining
representative of employees affected by air traffic control
modernization projects. Includes provision for employees to
receive per diem reimbursement, if appropriate, however, the
Administrator is prohibited from paying overtime expenses
except in extraordinary circumstances. The provision also
directs participants to adhere to deadlines and milestones to
help keep NextGen on schedule.

AIRSPACE REDESIGN

H218/S--

House bill
Section 218 contains Findings of Congress that the FAA
redesign efforts will play a critical role in enhancing
capacity, reducing delays, and transitioning to more flexible
routing. Additionally, the Findings state that funding cuts
have led to delays and deferrals to critical capacity
enhancing airspace redesign efforts, and several new runways
planned for in FY 2011 and FY 2012 will not provide estimated
capacity benefits without additional funds. It also requires
the Administrator to work with the New York/New Jersey Port
Authority to monitor the noise impacts of the redesign and
submit a report to Congress on those impacts in one year.
Senate bill
No similar provision.
Conference Substitute
House bill.

STUDY ON FEASIBILITY OF DEVELOPMENT OF A PUBLIC INTERNET WEB BASED
RESOURCE ON LOCATIONS OF POTENTIAL AVIATION OBSTRUCTIONS

H219/S--

House bill
Section 219 instructs the Administrator to carry out a
study on the feasibility of developing publicly searchable
web-based resources with information regarding height,
latitudinal and longitudinal locations of guywire and free-
standing tower obstructions.

[[Page H276]]

Senate bill
No similar provision.
Conference Substitute
House bill.

NEXTGEN RESEARCH AND DEVELOPMENT CENTER OF EXCELLENCE

H220/S--

House bill
Section 220 permits the Administrator to enter into an
agreement on a competitive basis to assist the establishment
of a Center of Excellence for the research and development of
NextGen technologies.
Senate bill
No similar provision.
Conference Substitute
House bill.

PUBLIC-PRIVATE PARTNERSHIPS

H221/S--

House bill
Section 221 directs the Administrator to develop a plan to
expedite the equipage of general aviation and commercial
aircraft with NextGen technologies.
Senate bill
No similar provision.
Conference Substitute
House bill modified to include language on NextGen public
private partnership program. The language describes financial
instruments which the Secretary may use to facilitate public-
private financing. In addition, language establishing an
avionics incentive program for facilitating the acquisition
and installation of equipment that is deemed to be in the
interest of achieving NextGen capabilities in commercial and
general aviation aircraft. Language regarding limitation on
principal is included with language regarding collateral,
fees and premiums as well as use of funds.
Subject to the availability of funds, the Secretary, or
his/her designee, may guarantee loans with deferred repayment
schedules, provided that in establishing the decisional
criteria for the period of deferral, the Secretary or his
designee shall consider the terms of the deferral established
by other transportation loan guarantee programs and when
equipment qualifying under subsection (A) of this section
will be put to beneficial use in aircraft. The Secretary
shall ensure that any such applications are reviewed under
procedures similar to those established for the Railroad
Rehabilitations and Improvement Financing program. The
authority of the Secretary to issue credit assistance
terminates 5 years after the date of establishment of the
Incentive Program.
In reviewing and evaluating applications for loan
guarantees, the Secretary or his/her designee shall reference
similar provisions in Sections 821, 822, and 823 of the
Railroad Rehabilitation and Improvement Financing program,
800 et seq. of Title 45, U.S.C. when considering the
following: (a) the estimated cost to the federal government
of providing the requested form and amount of assistance; (b)
the estimated public and aviation system benefits to be
derived from installing the required avionics in the most
timely manner; (c) the amount of private sector funding that
will be committed and the amount of private sector capital
placed at risk; and (d) the likelihood of default by
borrowers.

FACILITATION OF NEXTGEN AIR TRAFFIC SERVICES

H--/S303

House bill
No similar provision.
Senate bill
Section 303 describes the factors that the FAA would
consider in determining whether to accept the provision of
air traffic services by non-governmental providers.
Conference Substitute
House bill.

OPERATIONAL INCENTIVES

H--/S316

House bill
No similar provision.
Senate bill
Section 316 requires the FAA to issue a report to identify
incentives to encourage the equipping of aircraft with
NextGen technologies--including a ``best equipped, best
served'' approach.
Conference Substitute
Senate bill.

EDUCATIONAL REQUIREMENTS

H--/S312

House bill
No similar provision.
Senate bill
Section 312 requires FAA to reimburse Department of Defense
(DOD) for the cost of DOD-provided education of dependents of
FAA employees stationed in Puerto Rico and Guam.
Conference Substitute
Senate bill.

STATE ADS-B EQUIPAGE BANK PILOT PROGRAM

H--/S324

House bill
No similar provision.
Senate bill
Section 324 authorizes the Secretary of Transportation to
enter into cooperative agreements with up to five states to
establish ADS-B equipage banks for making loans and providing
other assistance to public entities.
Conference Substitute
House bill.

REPORT ON FUNDING FOR NEXTGEN TECHNOLOGY

H--/S319

House bill
No similar provision.
Senate bill
Section 319 requires the FAA to report on: 1) a financing
proposal to fund the development and implementation of
NextGen technology; and 2) recommendations for operational
benefits that could be provided to aircraft for early
equipage with NextGen technologies.
Conference Substitute
House bill.

AIR TRAFFIC CONTROLLER STAFFING INITIATIVES AND ANALYSIS

H--/S325

House bill
No similar provision.
Senate bill
Section 325 directs the FAA to implement certain DOT IG
recommendations with respect to the air traffic control tower
at Los Angeles International Airport and the Southern
California Terminal Radar Approach Control and Northern
California Terminal Radar Approach Control facilities by,
among other things, ensuring that classroom space, contract
instructors, and simulators are sufficiently available to
provide training to trainee air traffic controllers; evenly
distributing new trainee controllers across the facilities
over the calendar year; and commissioning an independent
analysis, in consultation with the controllers' exclusive
collective bargaining representative, of overtime scheduling
practices.
Conference Substitute
Senate bill modified by removing language that would limit
application of this section to only the facilities named
above. In addition, directs the Administrator, as soon as
practicable, to assess training programs at air traffic
control facilities with below-average success rates and
prioritize such efforts to address recommendations for the
facilities identified in Inspector General of the Department
of Transportation Report Number AV-2009-047.

SEMIANNUAL REPORT ON STATUS OF GREENER SKIES PROJECT

H--/S326

House bill
No similar provision.
Senate bill
Section 326 requires the FAA to report to Congress on a
strategy for accelerated implementation of the NextGen
operational capabilities produced by the Greener Skies
project. Follow-up reports are due 180 days after the first
report is submitted and then every 180 days after that until
September 30, 2011.
Conference Substitute
Senate bill with modified language requiring the first
report to be submitted six months after enactment, with
follow up reports annually (instead of reports every 180
days) until the pilot program terminates.

FINANCIAL INCENTIVES FOR NEXTGEN EQUIPAGE

H--/S328

House bill
No similar provision.
Senate bill
Section 328 authorizes the FAA Administrator to enter into
agreements to fund the costs of equipping aircraft with
avionics to enable NextGen technologies, including grants or
other financial instruments.
Conference Substitute
Senate bill dropped, however House language on public-
private partnerships was included.

TITLE III--SAFETY

JUDICIAL REVIEW OF DENIAL OF AIRMEN CERTIFICATES

H301/S502

House bill
Section 301 allows a person to seek judicial review of a
National Transportation Safety Board order in an appeal of a
decision on an application for an airman certificate.
Senate bill
Section 328 is a similar provision with minor technical
differences.
Conference Substitute
House bill.

RELEASE OF DATA RELATING TO ABANDONED TYPE CERTIFICATES AND
SUPPLEMENTAL TYPE CERTIFICATES

H302/S503

House bill
Section 302 authorizes the Administrator to release
certificate information without consent of the owner if: 1)
the requested data has been inactive for three or more years;
2) the FAA cannot, after due diligence, find the owner of
record, or the owner of record's heir; and 3) making the data
available will enhance aviation safety. The Administrator
shall maintain engineering data in possession of the FAA
relating to a type certificate that has been inactive for
three or more years.
Senate bill
Section 503 is a similar provision but with no language
regarding the requirement to maintain data.

[[Page H277]]

Conference Substitute
House bill.

DESIGN AND PRODUCTION ORGANIZATION CERTIFICATES

H303/S504

House bill
Section 303 directs the Administrator to issue Certified
Design and Production Organization Certificates to aviation
manufacturers in order to streamline the certification
process and allow FAA to focus its safety resources on
primary safety concerns. It clarifies that nothing in this
section would affect the FAA's authority to revoke the
Certified Design and Production Organization Certificates
once issued. The Administrator is directed to start issuing
such certificates by January 1, 2013.
Senate bill
Section 504 authorizes the Administrator to issue design
organization certificates beginning on January 1, 2013.
Conference Substitute
House bill.

CABIN CREW COMMUNICATION

H--/S508

House bill
No similar provision.
Senate bill
Section 508 requires that flight attendants be able to
read, speak and write English well enough to: 1) read and
comprehend material; 2) provide direction to, and understand
and answer questions from, English-speaking individuals; 3)
write incident reports and statements, and log entries and
statements; and 4) carry out written and oral instruction
regarding the proper performance of their duties. This
section does not apply to flight attendants serving solely
between points outside the United States.
Conference Substitute
Senate bill, however the FAA shall work with air carriers
to facilitate compliance through the flight attendant
certification requirements of 49 U.S.C. 44728.

LINE CHECK EVALUATIONS

H316/S722

House bill
Section 316 requires the Administrator to sunset, one year
after the date of enactment, the requirement for a second
yearly line check evaluation for airline pilots over the age
of 60, unless the Secretary of Transportation certifies that
the additional line check is necessary to ensure safety.
Senate bill
Section 722 is a similar provision, but does not require
DOT safety certification.
Conference Substitute
Senate bill.

SAFETY OF AIR AMBULANCE OPERATIONS

H310/S507

House bill
Section 310 directs the FAA to issue a Notice of Proposed
Rulemaking (NPRM) within 180 days to address air ambulance
safety. It requires a follow up or rulemaking to address
additional Helicopter Emergency Medical Services training.
Operators are required to collect and report data to the
Administrator on their operations, including the number of
flights and hours flown and for the FAA to report on that
data 24 months after enactment, and annually thereafter.
Senate bill
Section 507 is similar language, but includes fixed-wing
ambulance operators within the NPRM and includes a deadline
of 60 days. It does not require pilot training, radar
altimeters, survivability equipment, or operational control
centers to be addressed within the NPRM. It requires
helicopter and fixed wing air ambulance operators to comply
with regulations under 14 Code of Federal Regulations
(C.F.R.) part 135 whenever there is medical personnel
onboard, with certain exceptions. It also requires that
terrain awareness and warning systems be onboard helicopter
and fixed wing aircraft within one year. The FAA is directed
to study and initiate a third rulemaking within one year of
enactment to require devices similar to Cockpit Voice
Recorders (CVR) and Flight Data Recorders (FDR).
Conference Substitute
House bill with modified language to change deadline for
the first two rulemakings to June 1, 2012.

PROHIBITION ON PERSONAL USE OF CERTAIN DEVICES ON THE FLIGHT DECK

H313/S558

House bill
Section 313 prohibits the use of laptops and other personal
wireless devices by the flight crew on the flight deck while
the aircraft is being operated except if the device is being
used for a purpose related to the operation of the aircraft,
emergencies or safety, or employment related communications.
It authorizes civil penalties for violation of this provision
and gives the Administrator the ability to amend, modify,
suspend or revoke an operator's certificate for violation of
this provision. The Secretary of Transportation is required
to initiate a rulemaking within 90 days of enactment; and a
final rule is due two years after date of enactment. It
directs the Administrator to conduct a study and report to
Congress on the sources of distraction for flight
crewmembers.
Senate bill
Section 558 is a similar provision, except only civil
penalties are authorized for violation of this provision. It
directs FAA to initiate a rulemaking within 30 days of
enactment, and issue a final rule within one year of
enactment.
Conference Substitute
House bill.

INSPECTION OF REPAIR STATIONS LOCATED OUTSIDE THE UNITED STATES

H315/S521

House bill
Section 315 requires the Administrator to establish and
implement a system for assessing the safety of foreign repair
stations based on identified risks and consistent with U.S.
requirements. The FAA is to initiate inspections as
frequently as it determines is warranted by its safety
assessment system. The Departments of Transportation and
State are required to request members of the International
Civil Aviation Organization to establish international
standards for drug/alcohol testing of safety inspectors. The
Administrator is directed to issue a proposed rule within one
year of enactment requiring that all foreign repair station
employees responsible for safety-sensitive maintenance
functions are subject to an alcohol and controlled substances
testing program that is determined acceptable by the FAA and
is consistent with the applicable laws of the country in
which the repair station is based. The FAA is to provide an
annual report within one year of enactment, and annually
thereafter, on the Administration's oversight of foreign
repair stations and implementation of the foreign repair
station safety assessment system. It instructs the
Administrator to notify Congress within 30 days after
initiating formal negotiations with a foreign aviation
authority or other appropriate foreign government agency on a
new maintenance implementation agreement.
Senate bill
Section 521 is a similar provision, but directs the FAA to
inspect all repair stations, including those abroad, at least
twice a year in a manner consistent with United States
obligations under international agreements. The inspection
results for foreign civil aviation authorities shall be
considered if the foreign country has a maintenance safety
agreement with the United States.
Conference Substitute
House and Senate bills merged and modified, removing
language requiring that the report on part 145 repair
stations be completed within 1 year of enactment and modified
the annual inspections requirement from occurring ``as
frequently as determined warranted'' to annually in a manner
that is consistent with U.S. obligations under international
agreements, with additional inspections authorized based on
identified risks.

ENHANCED TRAINING FOR FLIGHT ATTENDANTS AND GATE AGENTS

H--/S562

House bill
No similar provision.
Senate bill
Section 562 requires that flight attendants and gate agents
receive training related to: serving alcohol to passengers;
recognizing intoxicated passengers; and dealing with
disruptive passengers.
Conference Substitute
Senate bill modified by removing references to gate agents
from the provision.

LIMITATION ON DISCLOSURE OF SAFETY INFORMATION

H337/S554

House bill
Section 337 amends Chapter 447, by exempting the following
reports and data from being subject to discovery or subpoena
or admitted into evidence in a Federal or State court: an
Aviation Safety Action Program (ASAP) report; data produced
from a Flight Operational Quality Assurance (FOQA) Program; a
Line Operations Safety Audit (LOSA) Program report; hazard
identification, risk assessment risk control; safety data
collected for purpose of assessing/improving aviation safety;
and reports, analyses and directed studies based in whole or
part on reports from the aforementioned programs including
those under the Aviation Safety Information Analysis and
Sharing (ASIAS) Programs. Any report or data that is
voluntarily provided to the FAA shall be considered to be
voluntarily submitted information within the meaning and
shall not be disclosed to the public. The FAA may release
documents to the public that include summaries,
aggregations or statistical analyses based on reports or
data described in this section, and the NTSB is not
prevented from referring to relevant information. This
exemption shall not apply to a report developed or data
produced on behalf of a person if that person waives the
privileges provided.
Senate bill
Section 554 would limit the use of FOQA and ASAP and LOSA
data in judicial proceedings. FOQA, ASAP or LOSA data would
only be allowed in a judicial proceeding if the judge finds
that a party shows that the information is relevant, not
otherwise known or available, and demonstrates a
particularized need for the information that outweighs the
intrusion upon the confidentiality of these programs. If this
information is used in a judicial proceeding, the court

[[Page H278]]

would be required to protect it against further dissemination
with a protective order and place the information under seal.
This section would also prohibit disclosure of this data
through the Freedom of Information Act. This section would
not prevent the NTSB from referring to information provided
under the FOQA, ASAP or LOSA programs.
Conference Substitute
House bill modified with technical edits.

PROHIBITION AGAINST AIMING A LASER POINTER AT AN AIRCRAFT

H--/S733

House bill
No similar provision.
Senate bill
Section 733 amends title 18, United States Code, to add a
new section 39A to make it a crime to knowingly aim the beam
of a laser pointer at an aircraft in the special aircraft
jurisdiction of the United States or at the flight path of
such aircraft. An individual convicted of this crime is
subject to criminal fines or imprisonment up to 5 years. This
provision does not apply to: 1) individuals conducting
research and development or flight test operations for an
aircraft manufacturer or the Federal Aviation Administration;
2) Department of Defense (DOD) or Department of Homeland
Security (DHS) personnel conducting research, development,
operations, testing or training; or 3) an individual using a
laser emergency signaling device to send a distress signal.
Section 39A authorizes the Attorney General, in consultation
with the Secretary of Transportation, to provide by
regulation, after public notice and comment, additional
exceptions to this provision as necessary and appropriate.
The Attorney General must give written notice of any such
proposed regulations to the House and Senate Committees on
the Judiciary as well as other specified committees.
Conference Substitute
Senate bill with minor modifications.

AIRCRAFT CERTIFICATION PROCESS REVIEW AND REFORM

H304/S--

House bill
Section 304 directs the Administrator to review the current
practices for aircraft certification. It requires that in
his/her assessment the Administrator must make
recommendations to improve efficiency and reduce costs
through streamlining and reengineering of certification
process and issue a report within 180 days.
Senate bill
No similar provision.
Conference Substitute
House bill.

CONSISTENCY OF REGULATORY INTERPRETATION

H305/S--

House bill
Section 305 directs the Administrator to convene an
advisory panel to determine the root causes of inconsistent
interpretation of regulations by the FAA Flight Standards
Service and Aircraft Certification Service, develop
recommendations to improve the consistency of interpreting
the regulations, and submit these recommendations to Congress
within six months.
Senate bill
No similar provision.
Conference Substitute
House bill with modification of six months to twelve months
to submit recommendations to Congress.

RUNWAY SAFETY

H306/S501,517

House bill
Section 306 requires the Administrator within six months to
create a Strategic Runway Safety Plan to address: 1) goals to
improve safety; 2) near and long term actions, time frames
and resources needed, continuous evaluative process for
goals, and review of every commercial service airport; and 3)
increased runway safety risks with the expected increased
volume of air traffic. It requires a report to Congress by
December 31, 2011 outlining a plan to install and deploy
systems to alert controller and/or flight crews of potential
runway incursions.
Senate bill
Section 328 is a similar provision.
Conference Substitute
House bill.

FLIGHT STANDARDS EVALUATION PROGRAM

H308/S--

House bill
Section 308 directs the Administrator to modify the Flight
Standards Evaluation Program to include periodic and random
audits of air carriers in the agency's oversight, and
prohibit an individual from participating in a review or
audit of an office with responsibility for an air carrier
under the program if the individual had responsibility for
inspecting the operations of that carrier in the five year
period preceding the date of the review. The Administrator is
required to report to Congress within one year of enactment,
and annually thereafter on the Flight Standards Evaluation
Program.
Senate bill
No similar provision.
Conference Substitute
House bill.

COCKPIT SMOKE

H309/S--

House bill
Section 309 directs U.S. Government Accountability Office
to conduct a study on the effectiveness of the FAA's
oversight of the use of new technologies to prevent/mitigate
effects of dense and continuous smoke in cockpit of aircraft,
with a report to be submitted to Congress in one year.
Senate bill
No similar provision.
Conference Substitute
House bill with modified language changing the report
deadline from one year to 18 months.

OFF-AIRPORT, LOW-ALTITUDE AIRCRAFT WEATHER OBSERVATION TECHNOLOGY

H311/S--

House bill
Section 311 directs the Administrator to conduct a review
of off-airport, low-altitude aircraft weather observation
technologies, which will include an assessment of technical
alternatives, investment analysis, and recommendations for
improving weather reporting. A report is required to be
submitted to Congress in one year.
Senate bill
No similar provision.
Conference Substitute
House bill.

FEASIBILITY OF REQUIRING HELICOPTER PILOTS TO USE NIGHT VISION GOGGLES

H312/S--

House bill
Section 312 directs the FAA to conduct a study and report
to Congress within one year of enactment on the feasibility
and potential risks of requiring all pilots of helicopters
providing air ambulance services to use night vision goggles
during nighttime operations.
Senate bill
No similar provision.
Conference Substitute
House bill.

MAINTENANCE PROVIDERS

H314/S522

House bill
Section 314 requires the Administrator to issue regulations
within three years to mandate that maintenance work on
aircraft be performed only by individuals employed by a part
121 air carrier, a part 145 repair station, or a company that
provides contract workers to part 121 carriers or part 145
repair stations if the individual meets part 121/145
requirements, works under the supervision of a part 121/145
carrier/station, and carries out the work in accordance with
part 121/145.
Senate bill
Section 522 is a similar provision.
Conference Substitute
Senate bill with modifications, including heading changed
to ``Maintenance Providers.'' This section directs the
Administrator to require that essential maintenance,
regularly scheduled maintenance, and work pursuant to
required inspection items must be performed by part 121
carriers, part 145 repair stations, or contractors meeting
the requirements of part 121 or 145 certificate holders.
Covered work performed by a contractor meeting the
requirements of par 121 or 145 certificate holders are
subject to the following terms and conditions: 1) the part
121 carrier shall be directly in charge of work; 2) the work
shall be carried out according to the part 121 carrier's
maintenance manual; and 3) the work shall be performed under
the part 121 carrier's supervision and control.
121 air carriers are responsible for ensuring that all
maintenance, whether performed by the air carrier itself or
performed by another entity under contract with the carrier,
is conducted in accordance with the air carrier's maintenance
program. When maintenance is performed by another entity, the
air carrier continues to be responsible for the oversight of
these maintenance providers, who are considered to be an
extension of the air carrier's maintenance program. This
provision will ensure that oversight responsibility for
maintenance remain with the 121 air carrier recognizing
supervision and oversight of individuals may be with a Part
145 repair station.
Responsibility for oversight by 121 carriers is not meant
to change the permitted work of the Part 145 repair stations.
In particular, 145 stations can continue to supervise and
oversee the activities of individuals that perform contract
maintenance when it is necessary to obtain technical
expertise.

STUDY OF AIR QUALITY IN CABINS

H--/S564

House bill
No similar provision.
Senate bill
Section 517 requires the FAA to initiate a study of air
quality in aircraft cabins. Additionally, the Administrator
would be given the authority to require domestic carriers to
allow monitoring of air quality on their aircraft while the
study is conducted. The Administrator is required to initiate
research and development work on effective air cleaning and
sensor technology for the engine and auxiliary power unit for
bleed air supplied to the passenger cabin and flight deck of
a pressurized aircraft within 180 days of enactment.

[[Page H279]]

Conference Substitute
Senate bill modified by removing language requiring the FAA
to determine the extent to which the installation of sensors
and air filters on commercial aircraft would provide a public
health benefit. The conference also agreed that the FAA's
authority to monitor air quality may not impose significant
costs to air carriers and may not interfere with the
carrier's normal use of the aircraft.

IMPROVED PILOT LICENSES

H307/S--

House bill
Section 307 directs the Administrator to issue improved
pilot licenses that are tamper-resistant, include a
photograph of the individual, and are capable of
accommodating a digital photograph, a biometric identifier,
or any other unique identifier. It instructs the
Administrator to develop methods to determine or reveal if
part of license issued has been tampered with.
Senate bill
No provision.
Conference Substitute
House bill modified by adding new language: 1) directing
the Administrator to provide the relevant House and Senate
Committees with a timeline for the issuance of pilot
licenses; 2) specifying that the new licenses should
incorporate biometric identifiers; and 3) requiring that the
licenses must comply with established aviation security
checkpoint clearance standards. The conference committee
recognizes that the federal government is responsible for the
screening of all individuals prior to entry into airport
sterile areas and expects that efforts to utilize improved
pilot certificates will be carried out by the federal
government.

STUDY OF HELICOPTER AND FIXED WING AIR AMBULANCE SERVICES

H--/S717

House bill
No similar provision.
Senate bill
Section 717 requires the GAO to conduct a detailed study of
the air ambulance industry and to make recommendations
related to the interaction of state and federal regulations
of air ambulances.
Conference Substitute
House bill, because the GAO has completed the required
study.

PILOT FATIGUE

H--/S506

House bill
No similar provision.
Senate bill
Section 506 requires a study of pilot fatigue to be
conducted by the National Academy of Sciences and for the FAA
to consider the study's findings as part of its rulemaking
proceeding on pilot flight time limitations and rest
requirements.
Conference Substitute
Senate provision dropped because it is included in P.L.
111-216, the Airline Safety and Federal Aviation
Administration Extension Act of 2010.

OCCUPATIONAL SAFETY AND HEALTH STANDARDS FOR FLIGHT ATTENDANTS ON BOARD
AIRCRAFT

H--/S509

House bill
No similar provision.
Senate bill
Section 509 requires the Administrator to establish
milestones and a policy statement for the completion of work
with the Occupational Safety and Health Administration (OSHA)
begun under the August 2000 Memorandum of Understanding (MOU)
regarding the application of OSHA requirements to crewmembers
while working in an aircraft.
Conference Substitute
Senate bill modified by dropping policy statement
principles. The conference committee believes that in
initiating development of a policy statement the FAA shall
consider 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 to examine
the applicability of current and future Occupational Safety
and Health Administration regulations; to recommend policies
for facilitating the training of Federal Aviation
Administration inspectors; and 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. Any standards adopted by
the Federal Aviation Administration shall set forth
clearly the circumstances under which an employer is
required to take action to address occupational safety and
health hazards; the measures required of an employer under
the standard; and the compliance obligations of an
employer under the standard.

IMPROVED SAFETY INFORMATION

H--/S511

House bill
No similar provision.
Senate bill
Section 511 directs the Administrator to issue a final rule
regarding re-registration and renewal of aircraft
registration, which must include preparing for the expiration
of aircraft registration certificates and periodic renewal
process, and other measures to promote the accuracy of the
Administration's aircraft registry.
Conference Substitute
House bill.

USE OF EXPLOSIVE PEST CONTROL DEVICES

H--/S523

House bill
No similar provision.
Senate bill
Section 523 requires the FAA to study the use of explosive
pest control devices to prevent wildlife strikes to aircrafts
and submit a report in six months.
Conference Substitute
House bill.

Subtitle B--Unmanned Aircraft Systems

DEFINITIONS

H321/S--

House bill
Section 321 defines the terms: ``certificate of waiver'',
``sense and avoid capability'', ``public unmanned aircraft
system'', ``small unmanned aircraft'', ``test range'',
``unmanned aircraft'', and ``unmanned aircraft system
(UAS).''
Senate bill
No similar provision.
Conference Substitute
House and Senate bills merged to include all of House
definitions and Senate definition of ``Arctic''.

INTEGRATION OF CIVIL UNMANNED AIRCRAFT SYSTEMS INTO NATIONAL AIRSPACE
SYSTEM

H322/S320, 607(a)(b)(d)(e)(f)

House bill
Section 322 requires the Secretary of Transportation to
develop a plan, in consultation with aviation and Unmanned
Aircraft Systems (UAS) industry representatives, within nine
months of enactment, for the safe integration of civil UASs
into the Nation Airspace (NAS). This plan must contain a
review of technologies and research to assist in this goal,
recommendations for a rulemaking on the definition of
acceptable standards, ensure civil UAS have sense and avoid
capability, develop standards and requirements for operator
and pilots of UASs, and recommendations. The plan must
include a realistic time frame for UAS integration into the
NAS, but no later than September 30, 2015. The plan must be
submitted to Congress within one year of enactment. The FAA
is required to initiate a Notice of Proposed Rulemaking
(NPRM) for site integration of UAS within 18 months of the
date of enactment of the integration plan.
Senate bill
Section 320 requires the FAA to develop a plan within one
year to accelerate the integration of UASs into the NAS. This
plan must include: 1) a pilot project that includes the
integration of UAS into six test sites, representing
geographic and climate differences within the United States,
by 2012; 2) development of certification, flight standards,
and air traffic requirements for UAS; 3) the dedication of
funding for research on UAS certification, flight standards,
and air traffic control (ATC); 4) coordination of research
between NASA and DOD; and 5) verification of the safety of
UAS before their integration into the NAS. This section would
allow the FAA Administrator to include testing at six test
sites as part of the integration plan by 2012. The FAA is
directed to work with DOD to certify and develop flight
standards for military unmanned aerial systems and to
integrate these systems into the NAS as part of the UAS
integration plan. The FAA Administrator is required to submit
a report describing and assessing the progress made in
establishing special use airspace for DOD to develop
detection techniques for small UASs.
Section 607 allows the FAA to conduct developmental
research on UASs. It would direct the FAA and the National
Academy of Sciences to create an assessment of UAS
capabilities and would require the National Academy of
Sciences to submit a report to Congress on the subject. It
requires the FAA to issue a rule to update the most recent
policy statement on UASs. The FAA is directed to identify
permanent areas in the Arctic where UASs may operate 24 hours
a day. The FAA is to take part in cost-share pilot projects
designed to accelerate the safe integration of UASs into the
NAS.
Conference Substitute
House and Senate bills merged. The conference committee
directs the Secretary to develop a plan to accelerate the
safe integration of unmanned aircraft systems (UAS) into
the national airspace system. The Secretary is directed to
develop the plan in consultation with the aviation
industry, federal agencies using UASs, and the UAS
industry as soon as practicable, but no later than
September 30, 2015. Concurrent with the integration
planning, the Secretary is directed to publish, and update
annually, a five-year roadmap describing the activities of
the FAA's Unmanned Aircraft Program Office, and its
efforts to safely integrate UASs into the national
airspace system. The conference committee also directs the
Secretary to promulgate rules to allow for integration of
small UASs into the national airspace system. The
conference committee also directs the Administrator of the
Federal Aviation Administration to establish six test
ranges until September 30, 2020. Test range locations are
not designated in the legislation.

[[Page H280]]

Instead, the Administrator is directed to coordinate
with, and leverage resources from, the National
Aeronautics and Space Administration and the Department of
Defense to select the test ranges based on the criteria
set forth in this section. This language is consistent
with legislative direction in the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-
81). The intent of the committee is for the Administrator
to establish a total of six test ranges under both laws,
and not six ranges to be established under each law for a
total of twelve. The conference committee directs the
Secretary to develop a plan for the use of UASs in the
arctic, as defined in this subtitle. Finally, the term
``non-exclusionary airspace'' was removed as the FAA does
not recognize that term. The conference committee intends
that when the FAA establishes the program to integrate
UASs into the national airspace system at six test ranges,
the Administrator shall safely designate airspace for
integrated manned and unmanned flight operations in the
national airspace system.

SPECIAL RULES FOR CERTAIN UNMANNED AIRCRAFT SYSTEMS

H323/S--

House bill
Section 323 directs that within 180 days the Secretary of
Transportation, prior to completing of the Commercial UAS
integration plan, will determine if certain UAS may operate
in the NAS. Assessment of the UASs will determine which types
of UAS do not create hazard to users of NAS or national
security, and whether a certificate of waiver or
authorization of airworthiness is required. If the Secretary
determines UAS may operate safely in the NAS, the Secretary
shall establish requirements of the safe operation of such
systems.
Senate bill
No similar provision.
Conference Substitute
House bill.

PUBLIC UNMANNED AIRCRAFT SYSTEMS

H324/S--

House bill
Section 324 directs that within 270 days the Secretary of
Transportation will issue guidance on the operation of public
UASs to expedite the certificate of authorization process,
provide a collaborative process for expansion of access to
the NAS, and provide guidance on public entities responsible
when operating UASs. By December 31, 2015, the Secretary is
required to implement operational and certification
standards. The Secretary is directed to enter in agreements,
within 90 days, with appropriate government agencies to
simplify and expedite the process for issuing certificates of
waiver or authorization regarding applications seeking
authorization to operate public UAS in the NAS.
Senate bill
No similar provision.
Conference Substitute
House bill.

SAFETY STUDIES

H325/S--

House bill
Section 325 directs the Administrator to conduct all safety
studies necessary to support integration of UAS into the NAS.
Senate bill
No similar provision.
Conference Substitute
House bill.

SPECIAL RULE FOR MODEL AIRCRAFT

H--/S607(g)

House bill
No similar provision.
Senate bill
Section 607(g) exempts most model airplanes used for
recreational or academic use from any UAS regulations
established by the FAA.
Conference Substitute
Senate bill with modifications. Language including model
aircraft for the purposes of sports, competitions and
academic purposes is removed and replaced with ``hobby''. The
modified section includes language requiring that the model
aircraft must be operated in a manner that does not interfere
with and gives way, to all manned aircraft. In addition,
language that requires that model aircraft flown within five
miles of an airport will give prior notification to the
airport and the air traffic control (ATC), and that model
aircraft that are flown consistently within five miles of the
ATC will do so under standing agreements with the airports
and ATC. Lastly, language is added that will ensure that
nothing in this provision will interfere with the
Administrator's authority to pursue enforcement action
against persons operating model aircraft who endanger the
safety of the national airspace system. In this section the
term ``nationwide community-based organization'' is intended
to mean a membership based association that represents the
aeromodeling community within the United States; provides its
members a comprehensive set of safety guidelines that
underscores safe aeromodeling operations within the National
Airspace System and the protection and safety of the general
public on the ground; develops and maintains mutually
supportive programming with educational institutions,
government entities and other aviation associations; and
acts as a liaison with government agencies as an advocate
for its members.

UNMANNED AIRCRAFT SYSTEMS TEST RANGE

H326/S607(c)

House bill
Section 326 directs the Administrator no later than one
year after enactment to establish a program to integrate UASs
into the national airspace system at no fewer than four test
ranges. The program will include safely designating
nonexclusionary airspace for integrated unmanned flight
operations, develop certification standards and air traffic
requirements, coordinate and leverage the resources of
National Air and Space Administration and Department of
Defense, address both civil and public UAS, ensure the
program is coordinated with NextGen, and provide for
verification of safety of UASs. In determining test range
locations the Administrator shall consider geographic and
climate diversity and consult with NASA and the Air Force.
Senate bill
Section 607(c) is a similar provision, but it allows the
Administrator to include testing at three test sites as part
of the integration plan by 2012. It directs the FAA to work
with DOD to certify and develop flight standards for military
UASs and to integrate these systems into the NAS as part of
the UAS integration plan.
Section 320 establishes a test range program for 10 sites.
Conference Substitute
House and Senate bills merged into language that is
included in Section 332 ``Integration of civil unmanned
aircraft into the national airspace system''.

Subtitle C--Safety and Protections

AVIATION WHISTLEBLOWER INVESTIGATION OFFICE

H334/S518

House bill
Section 334 establishes an independent Whistleblower
investigation office within the FAA. The Director of this
office is to be appointed by the Secretary of Transportation
for a five year term. The office is in charge of
investigating reports of agency or carrier safety violations,
and is to make recommendations to the Administrator. It
specifies that the Director cannot be prohibited from
initiating an assessment of a complaint and that any evidence
of criminal violations must be reported to the Administrator
and Inspector General of the Department of Transportation
(DOT IG).
Senate bill
Section 518 is a similar provision, but it does not require
the Secretary to exercise authority under title 5 for the
prevention of prohibited personnel actions or require direct
reporting by the Director to the Secretary.
Conference Substitute
House bill with modified language to authorize the Director
of the office created under this section to receive and
investigate disclosures from employees of the Administration
as well as employees of persons holding certificates issued
under title 14 of the Code of Federal Regulations (C.F.R.),
if those certificate holders do not have similar in-house
reporting programs, relating to possible violation of an
order, a regulation, or any other provision of federal law
relating to aviation safety.

POST-EMPLOYMENT RESTRICTIONS FOR FLIGHT STANDARDS INSPECTORS

H331/S513

House bill
Section 331 establishes a two year post-service period for
FAA inspectors or persons responsible for oversight of FAA
inspectors before they can act as an agent or representative
of a certificate holder that they previously had
responsibility for while employed at the FAA.
Senate bill
Section 513 is a similar provision, but it has a three year
post-service restriction.
Conference Substitute
House bill.

REVIEW OF AIR TRANSPORTATION OVERSIGHT SYSTEM DATABASE

H332/S520

House bill
Section 332 requires the FAA to create a process to review
the Air Transportation Oversight System (ATOS) database by
regional teams to ensure that trends in regulatory compliance
are identified, and appropriate corrective actions are taken
according to Administration regulations.
Senate bill
Section 520 is a similar provision.
Conference Substitute
House bill.

IMPROVED VOLUNTARY DISCLOSURE REPORTING SYSTEM

H333/S512

House bill
Section 333 requires FAA to modify the Voluntary Disclosure
Reporting Program (VDRP) to require inspectors to verify that
air carriers have implemented comprehensive solutions to
correct underlying causes of voluntarily disclosed
violations, and confirm, before approving a final report of a
violation, that the violation has not been previously
discovered by an inspector or self-disclosed by an air
carrier. The DOT IG is directed to review the FAA's
implementation of the VDRP program.
Senate bill
Section 512 is a similar provision.

[[Page H281]]

Conference Substitute
House bill.

DUTY PERIODS AND FLIGHT TIME LIMITATIONS APPLICABLE TO FLIGHT
CREWMEMBERS

H335/S--

House bill
Section 335 directs the FAA to initiate a rulemaking within
six months of enactment to require commercial pilots who
accept additional flight assignments under part 91 of Title
14 Code of Federal Regulations to count the flying time under
the additional flight assignments towards the commercial
flight time limitations. It requires the Administrator to
conduct two separate rulemakings for part 121 and part 135
flight time limitations (the latter rulemaking must be
initiated within one year of enactment).
Senate bill
No similar provision.
Conference Substitute
House bill.

CERTAIN EXISTING FLIGHT TIME LIMITATIONS AND REST REQUIREMENTS

H336/S--

House bill
Section 523 extends the sections 263 and 264 of part 135 of
title 14 C.F.R. for part 135 certificate holders providing
air ambulance services and pilots and flight crewmembers of
all cargo aircraft regarding certain flight times and rest
periods shall remain in effect as they were in effect in
January 1, 2011. It prohibits the Administrator from issuing,
finalizing or implementing a rule as proposed in the FAA
docket on ``Interpretations of Rest Requirements'' published
in the register on December 23, 2010, or any similar rule
regarding such sections for part 135 certificate holders
providing air ambulance services and pilots and flight
crewmembers of all cargo aircraft.
Senate bill
No similar provision.
Conference Substitute
House bill modified by removing language requiring a
separate rulemaking and language referencing requirements in
effect on January 1, 2011.

EMERGENCY LOCATOR TRANSMITTERS ON GENERAL AVIATION AIRCRAFT

H--/S553

House bill
No similar provision.
Senate bill
Section 553(a), (b) directs the Administrator to submit an
annual report to Congress regarding the recommendations
issued by the NTSB consisting of the following: 1) whether
the FAA plans to implement the recommendation of the NTSB: 2)
if so, what actions the FAA plans to take to implement the
recommendation: and 3) if the FAA chooses to not implement a
NTSB recommendation, its reasoning for not doing so. This
section would require the FAA to submit within 180 days to
Congress the above information on all current NTSB
recommendations not implemented so far.
Section 553(c) requires the FAA to implement NTSB
recommendations relating to the proper installation of
emergency locator transmitters (ELTs) on general aviation
aircraft.
Conference Substitute
Senate bill modified to only keep the ELT language.

LIABILITY PROTECTION FOR PERSONS IMPLEMENTING SAFETY MANAGEMENT SYSTEMS

H338/S--

House bill
Section 338 specifies that a person required by the FAA to
implement a Safety Management System (SMS) may not be held
liable for damages in connection with a claim filed in a
State or Federal court relating to the person's preparation
or implementation of the SMS. The section does not relieve a
person from liability for damages resulting from the person's
own willful or reckless acts or omissions when demonstrated
through evidence. Notwithstanding any other provision of law,
a person employed by previously mentioned individuals and
responsible for performing functions of an accountable
executive, shall be deemed to be acting in the person's
official capacity and may not be held liable for damages. A
person performing the functions of an accountable executive
is not relieved from personal liability for damages resulting
from reckless acts or omissions.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

MODIFICATION OF CUSTOMER SERVICE INITIATIVE

H--/S519

House bill
No similar provision.
Senate bill
Section 519 directs the FAA to remove from their customer
service initiative, mission statements, and vision
statements, any reference to air carriers as ``customers''.
This section instructs the agency to guarantee that these
statements should emphasize safety as the agency's highest
priority when considering the dissatisfaction of any
regulated entity.
Conference Substitute
House bill.

INDEPENDENT REVIEW OF SAFETY ISSUES

H--/S514

House bill
No similar provision.
Senate bill
Section 514 directs the U.S. Government Accountability
Office (GAO) to initiate a review and investigation of air
safety issues identified by FAA employees and reported to the
Administrator. The GAO must report any findings to the
Administrator and relevant Congressional Committees on an
annual basis.
Conference Substitute
House bill.

NATIONAL REVIEW TEAM

H--/S515

House bill
No similar provision.
Senate bill
Section 517 requires the FAA to create a national review
team to conduct unannounced, periodic, random reviews of the
Administration's oversight of air carriers that will report
to the Administrator and the relevant Congressional
Committees. Members of the team may not review an air carrier
that they previously had responsibility for overseeing. The
section would also direct the DOT IG to provide progress
reports on the review team's effectiveness to Congress.
Conference Substitute
House bill.

SAFETY INSPECTIONS OF REGIONAL CARRIERS

H--/S559

House bill
No similar provision.
Senate bill
Section 559 instructs the Administrator to make random, on-
site safety inspections of regional air carriers at least
once a year.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

OVERSIGHT OF PILOT FLIGHT TRAINING SCHOOLS

H--/S561

House bill
No similar provision.
Senate bill
Section 561 directs the Administrator to submit a plan to
Congress detailing the FAA's plans to enforce oversight of
Pilot Training Schools.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

FEDERAL AVIATION ADMINISTRATION PILOT RECORDS DATABASE

H--/S551

House bill
No similar provision.
Senate bill
Section 551 requires that part 121 air carriers review a
pilot's entire history before making hiring decisions. It
would mandate that the FAA develop and maintain a
comprehensive database of pilot records, including both FAA
records and air carrier records. It contains provisions
permitting pilots to review and correct their records.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

AIR CARRIER SAFETY MANAGEMENT SYSTEMS

H--/S552

House bill
No similar provision.
Senate bill
Section 552 directs the FAA to initiate a rulemaking
requiring all part 121 air carriers to implement three safety
programs as part of their Safety Management Systems (SMS)
including: an Aviation Safety Action Program (ASAP), a Flight
Operational Quality Assurance (FOQA) program, and a Line
Operations Safety Audit LOSA program. It would require that
the FAA implement employee protections for the ASAP and FOQA
programs and mandate that the FAA Administrator consider the
viability of integrating cockpit voice recorder data into
safety oversight practices and guarantee that the agency
enforce safety regulations in a consistent manner.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

IMPROVED FLIGHT OPERATIONAL QUALITY ASSURANCE, AVIATION SAFETY ACTION,
AND LINE OPERATIONAL SAFETY AUDIT PROGRAMS

H--/S554

House bill
No similar provision.
Senate bill
Section 554 would limit the use of FOQA and ASAP and LOSA
data in judicial proceedings. FOQA, ASAP or LOSA data would
only be allowed in a judicial proceeding if the judge finds
that a party shows that the information is relevant, not
otherwise known or available, and demonstrates a
particularized need for the information that outweighs the
intrusion upon the confidentiality of these programs. If this
information

[[Page H282]]

is used in a judicial proceeding, the court would be required
to protect it against further dissemination with a protective
order and place the information under seal. This section
would prevent disclosure of this data through the FOIA but
would not prevent the NTSB from referring to information
provided under the FOQA, ASAP or LOSA programs.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

RE-EVALUATION OF FLIGHT CREW TRAINING, TESTING, AND CERTIFICATION
REQUIREMENTS

H--/S555

House bill
No similar provision.
Senate bill
Section 555 requires the Administrator to develop and
implement a plan to reevaluate flight crew training
procedures and would specify what types of training would be
included in the review. It would require the Administrator to
initiate a new rulemaking to reevaluate minimum requirements
to become a commercial pilot, certificated captain, and when
transitioning to a new type of aircraft.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

FLIGHTCREW MEMBER MENTORING, PROFESSIONAL DEVELOPMENT, AND LEADERSHIP

H--/S556

House bill
No similar provision.
Senate bill
Section 556 requires the FAA to establish an ARC to develop
flight crew mentoring programs and establish or modify
training existing programs to include leadership and command
training.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

FLIGHTCREW MEMBER SCREENING AND QUALIFICATIONS

H--/S557

House bill
No similar provision.
Senate bill
Section 557 requires the FAA to issue a rule that ensures
flight crew members have proper qualifications and
experience, including a minimum of 800 hours of flight
training, before serving as a flight crew member for a part
121 air carrier.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

ESTABLISHMENT OF SAFETY STANDARDS WITH RESPECT TO THE TRAINING, HIRING,
AND OPERATION OF AIRCRAFT BY PILOTS

H--/S560

House bill
No similar provision.
Senate bill
Section 560 requires the FAA to issue a final rule
establishing training safety standards for pilots within 180
days after enactment of this Act.
Conference Substitute
Senate bill dropped because it is included in P.L. 111-216,
the Airline Safety Federal Aviation Administration Extension
Act of 2010.

DEFINITIONS

H--/S563

House bill
No similar provision.
Senate bill
Section 563 defines the terms: ``Aviation Safety Action
Program,'' ``Administrator'', ``Air Carrier'', ``FAA'',
``Flight Operational Quality Assurance Program'', ``Line
Operation Safety Audit Program'', and ``Part 121 Air
Carrier''.
Conference Substitute
House bill.

TITLE IV--AIR SERVICE IMPROVEMENTS

Subtitle B--Essential Air Service

ESSENTIAL AIR SERVICE MARKETING

H401/S417
House bill
Section 401 specifies that when deciding where to award an
Essential Air Service (EAS) contract, the Secretary of
Transportation must consider, whether the air carrier has
included a plan in its proposal to market its services to the
community.
Senate bill
Section 417 similar provision, but it requires that all
applications for EAS are to include a marketing plan to
promote community involvement in their EAS service.
Conference Substitute
House bill.

NOTICE TO EAS COMMUNITIES PRIOR TO TERMINATION OF EAS ELIGIBILITY

H402/S--

House bill
Section 402 requires the Secretary of Transportation to
notify a community receiving EAS at least 45 days in advance
of any final decision to end EAS payments to that community
due to a determination by the Secretary that providing such
service requires a subsidy in excess of the per passenger
subsidy cap. The Secretary shall establish procedures by
which each community that is notified of an impending loss of
subsidy may work directly with an air carrier to ensure that
the air carrier is able to submit a proposal to the Secretary
that does not require a subsidy in excess of the per
passenger subsidy cap.
Senate bill
No similar provision.
Conference Substitute
House bill.

RESTORATION OF ELIGIBILITY

H406/S418

House bill
Section 406 authorizes state and local governments to
submit a proposal to restore essential air service to a
location after that location's per passenger subsidy has been
determined to be over the allowable dollar amount. To qualify
for restoration of service, the Secretary must determine that
the rate of subsidy per passenger under the proposal does not
exceed the allowable amount and the proposal is consistent
with the legal and regulatory requirements of the essential
air service program.
Senate bill
Section 418 is a similar provision.
Conference Substitute
House and Senate bills modified to include proposals to
restore essential air service to locations that have been
determined to have fewer than 10 enplanements per day. To
qualify for restoration of service, the Secretary must
determine that the rate of subsidy per passenger under the
proposal does not exceed the allowable amount, the proposal
is likely to result in an average of at least 10 enplanements
per day, and the proposal is consistent with the legal and
regulatory requirements of the essential air service program.

ESSENTIAL AIR SERVICE CONTRACT GUIDELINES

H403/S413

House bill
Section 403 authorizes DOT to provide incentive payments to
communities for achieving performance goals, and to execute
long- term EAS contracts. Requires DOT to issue revised
guidelines incorporating these changes within 18 months after
the date of enactment. Requires DOT to report to Congress on
the extent to which the revised guidelines have been
implemented, and the impact such implementation has had,
every two years after the guidelines are established.
Senate bill
Section 413 is a similar provision, but it does not contain
language on issuing guidance or the report.
Conference Substitute
House bill modified to extend the deadline for issuance of
revised guidelines to one year after date of enactment.

ESSENTIAL AIR SERVICE REFORM

H404/S415

House bill
Section 404 authorizes $97.5 million for Essential Air
Service (EAS) in FY 2011, $60 million in FY 2012, and $30
million in FY 2013. These amounts are in addition to the $50
million per year the EAS program is authorized to receive
under current law from overflight fees collected by the FAA.
Beginning in FY 2014, section 404 limits the amount EAS would
receive from overflight fees to the amount needed to provide
EAS to eligible communities in Alaska and Hawaii. In
addition, it directs the Secretary of Transportation to take
such actions as may be necessary to administer the EAS
program within the amount of funding made available for the
program.
Senate bill
Section 415 authorizes $150 million per year for EAS, plus
$50 million from overflight fees. It requires any overflight
fees in excess of $50 million to be obligated for various EAS
programs, including the code sharing pilot program under
section 406 of Vision 100 and the alternate air service pilot
program under Sec. 41745.
Conference Substitute
Authorizes $143 million for EAS in FY 2012, $118 million in
FY 2013, $107 million in FY 2014, and $93 million in FY 2015.
In addition, authorizes all overflight fees collected by the
FAA to be made available, until expended, to carry out the
essential air service program.

SMALL COMMUNITY AIR SERVICE

H405/S416

House bill
Section 405 adds an additional factor that the Secretary of
Transportation must consider in selecting communities for
participation in the Small Community Air Service Development
(SCASD) program. In addition to the existing criteria for
participation in the program, the Secretary is required to
give priority to multiple communities that cooperate to
submit a regional or multi-state application to improve air
service. It eliminates the general fund authorization of
appropriations for the SCASD program, funding it instead
through overflight fee collections.

[[Page H283]]

Senate bill
Section 413 extends the authorization for the SCASD program
at its authorized funding level of $35 million per year
through FY 2011.
Conference Substitute
Requires the Secretary to give priority to multiple
communities that cooperate to submit a regional or multistate
application to consolidate air service into one regional
airport. Authorizes the appropriation of $6 million for the
Small Community Air Service Development program for each of
fiscal years 2012 through 2015.

ADJUSTMENTS TO COMPENSATION FOR SIGNIFICANTLY INCREASED COSTS

H406/S418(g)

House bill
Section 406 permits the Secretary of Transportation to
increase the rates of compensation payable to air carriers
under the EAS program to compensate carriers for increased
aviation fuel costs, without regard to any agreement, without
requiring the negotiation of existing contracts, and without
any notice requirement. It removes the 90 day period in which
the Secretary may continue to pay the amount previous
contracted for as EAS carrier who has given notice, but has
been required to continuing operating.
Senate bill
Section 418(g) is a similar provision.
Conference Substitute
House bill.

REPEAL OF ESSENTIAL AIR SERVICE LOCAL PARTICIPATION PROGRAM

H407/S419

House bill
Section 407 eliminates an EAS pilot program in which
communities assumed a portion of the cost of providing EAS to
the community.
Senate bill
Section 419 is a similar provision with minor technical
differences.

Conference Substitute

House and Senate bills.

SUNSET OF ESSENTIAL AIR SERVICE PROGRAM

H408/S420,421

House bill
Section 408 sunsets the EAS program everywhere except
Alaska and Hawaii as of October 1, 2013.
Senate bill
Section 420 imposes limits EAS to locations that average
ten or more enplanements per day, with an exception for
Alaska. It authorizes the Administrator to waive this
limitation with respect to a location if the Administrator
determines that the reason the location averages fewer than
ten enplanements per day is not because of inherent issues
with the location.
Section 421 limits EAS to locations that are 90 or more
miles away from the nearest medium or large hub airport. It
authorizes the Secretary of Transportation to waive this
limitation as a result of geographic characteristics
resulting in undue difficulty accessing the nearest medium or
large hub airport.
Conference Substitute
Senate bill, except the requirement that locations be at
least 90-miles away from the nearest large or medium hub
airport is deleted; the requirement that locations have at
least 10 enplanements per day only applies to locations that
are within 175 miles of a large or medium hub airport; and an
exception is added for locations in the State of Hawaii and
Alaska. In addition, instead of sunsetting the program as
proposed in the House bill, the conference substitute freezes
the program at the communities currently participating.
Specifically, except in Alaska and Hawaii, the conference
agreement limits eligibility for EAS to those communities
that, at any time from September 30, 2010, to September 30,
2011, either received subsidized EAS or were notified by the
last carrier providing unsubsidized service to the community
of the carrier's intent to terminate such service.

Subtitle A--Passenger Air Service Improvements

SMOKING PROHIBITION

H421/S--

House bill
Section 421 prohibits smoking on aircraft in all
intrastate, interstate, and foreign air transportation for
scheduled passenger or nonscheduled passenger air
transportation when a flight attendant is required.
Senate bill
No similar provision.
Conference Substitute
House bill.

MONTHLY AIR CARRIER REPORTS

H422/S402

House bill
Section 422 requires air carriers that file monthly service
reports to also file a monthly report on each flight diverted
and each flight that departs the gate but is cancelled before
the flight takes off. It requires the Secretary of
Transportation to compile the information in a single monthly
report and publish it on a DOT website.
Senate bill
Section 402 requires air carriers to publish on their
website, and update monthly, a list of chronically delayed
flights operated by the air carrier. It requires air carriers
and authorized entities to disclose the on-time performance
for a chronically delayed flight when a customer books a
flight on the carrier's website, prior to actual purchase of
a ticket.
Conference Substitute
House bill.

MUSICAL INSTRUMENTS

H424/S713

House bill
Section 424 requires air carriers to permit passengers to
carry a small musical instrument, such as a violin, guitar,
onto the aircraft cabin if it if can be stowed safely in a
suitable baggage compartment in the aircraft cabin or baggage
or cargo storage compartment if the instrument can be stowed
properly and there is space for such instruments. Air
carriers are to permit passengers to bring a large instrument
into the passenger compartment if the instrument can be
stowed properly in a seat and the passenger has purchased a
seat for the instrument. Air carriers must transport as
checked baggage musical instruments that may not be carried
on provided they meet certain weight and size limitations
(i.e., if the sum of length, width, and height does not
exceed 150 inches, weigh over 165 pounds, or exceed size and
weight restrictions for that aircraft) and can be properly
stowed. It directs, no later than two years after the date of
enactment, the Secretary of Transportation to issue final
regulations to carry out this section.
Senate bill
Section 713 is a similar provision, but it does not specify
that passengers carrying musical instruments would be charged
fees for that luggage. There is no deadline for the
rulemaking to be completed by, but it includes a mandate to
require carrier participation.
Conference Substitute
House bill modified to specify that passengers carrying
musical instruments are subject to the same baggage fees
assessed to all other types of carry-on baggage if a seat is
not purchased for that instrument.

EXTENSION OF COMPETITIVE ACCESS REPORTS

H--/S705

House bill
No similar provision.
Senate bill
Section 705 makes the requirement for air carriers to file
competitive access reports permanent by eliminating the
current sunset provision. Current law requires large and
medium hub airports to file semi-annual competition
disclosure reports with DOT before receiving an AIP grant if
the airport was unable to accommodate an airline request for
facility access. The report must explain reason for the lack
of accommodation and time frame for accommodation.
Conference Substitute
Senate bill modified to the length of the bill.

AIRFARES FOR MEMBERS OF THE ARMED SERVICES

H426/S433

House bill
Section 426 expresses the Sense of Congress that each
domestic air carrier should seek to provide active duty
members of the Armed Services who are traveling on leave or
liberty at their own expense with: reduced air fares that are
comparable to the lowest airfare for ticketed flights, and
that eliminate to the maximum extent possible advanced
purchase requirements; no baggage and excess weight fees, or
reduced fees; flexible terms that allow members to purchase,
modify, or cancel tickets without time restrictions, and to
waive fees (including baggage fees), ancillary costs, or
penalties; and proactive measures to ensure that all airline
employees are trained in the policies pertaining to members
of the Armed Forces who are on leave.
Senate bill
Section 433 is a similar provision with minor technical
differences.
Conference Substitute
House bill.

REVIEW OF AIR CARRIER FLIGHT DELAYS, CANCELLATIONS, AND ASSOCIATED
CAUSES

H427/S--

House bill
Section 427 requires the Inspector General of the
Department of Transportation (DOT IG) to conduct a review
regarding air carrier flight delays, cancellations, and
associated causes, to update its 2000 report, within one year
of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.

COMPENSATION FOR DELAYED BAGGAGE

H429/S--

House bill
Section 429 directs the U.S. Government Accountability
Office to study delays in the delivery of checked baggage to
passengers, assess options and examine: the impact of
establishing minimum standards to compensate a passenger in
the case of unreasonable delays; take into consideration the
additional fees for checked baggage that are

[[Page H284]]

imposed by many air carriers; and how the additional fees
should improve a carrier's baggage performance. The report
must be submitted within 180 days of the date of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.

DOT AIRLINE CONSUMER COMPLAINT INVESTIGATIONS

H431/S403

House bill
Section 431 directs the Secretary of Transportation to
investigate consumer complaints regarding: 1) flight
cancelations; 2) overbooking flights; 3) lost or damaged
baggage; 4) problems obtaining refunds; 5) incorrect
information regarding fares; 6) frequent flyer programs; and
7) deceptive or misleading advertising.
Senate bill
Section 403 is a similar provision, but with language
requiring a budget needs report.
Conference Substitute
House bill.

STUDY OF OPERATORS REGULATED UNDER PART 135

H432/S--

House bill
Section 432 requires the Administrator, along with
interested parties, to conduct a study of part 135 operators
within 18 months of enactment, and an update within three
years, and every two years thereafter.
Senate bill
No similar provision.
Conference Substitute
House bill with modification removing the requirement for
follow up reports every two years.

USE OF CELL PHONES ON PASSENGER AIRCRAFT

H433/S--

House bill
Section 433 directs the Administrator to conduct a study
within four months of enactment on the impact of the use of
cell phones for voice communications in scheduled flights
where currently permitted by foreign governments in foreign
air transportation. The results of the study must be
published and open to public comment, and a final report must
be submitted to Congress within nine months of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.

ESTABLISHMENT OF ADVISORY COMMITTEE FOR AVIATION CONSUMER PROTECTION

H--/S404

House bill
No similar provision.
Senate bill
Section 404 requires the establishment of an advisory
committee for the Secretary of Transportation regarding
aviation consumer protection. Membership would consist of one
representative each from an air carrier, airport operator,
and a state or local government with expertise with consumer
protection matters, and one nonprofit group with expertise in
consumer protection matters. It directs the advisory
committee to report annually on its recommendations on
February 1 of each of the first two calendar years of
enactment.
Conference Substitute
Senate bill modified to make the provision last the length
of the bill and removes travel per diem for members of the
advisory committee.

DISCLOSURE OF SEAT DIMENSIONS TO FACILITATE THE USE OF CHILD SAFETY
SEATS ON AIRCRAFT

H--/S408

House bill
No similar provision.
Senate bill
Section 408 directs the Administrator to prescribe
regulations, within six months of enactment, to facilitate
the use of child safety seats on aircraft. The regulations
must require part 121 air carriers to post on their websites
the maximum dimensions of a child safety seat that can be
used on each aircraft operated by the air carrier to enable
passengers to determine which child safety seats can be used
on those aircraft.
Conference Substitute
Senate bill with modified language changing the deadline
for the regulations from six months to twelve months. The
conference committee also believes that passengers should be
made fully aware of the location of final assembly of the
aircraft on which they fly. Therefore, the committee believes
the Secretary should require air carriers to position the
``location of final assembly'' notification immediately below
the aircraft model number on the front page of the
information placard.

SCHEDULE REDUCTION

H430/S--

House bill
Section 430 directs the FAA to convene a conference of air
carriers to voluntarily reduce aircraft operations if the FAA
determines that operations of those carriers are exceeding
the hourly maximum departure and arrival rates, and the
excess operations are likely to have a significant adverse
effect on the NAS. It authorizes FAA to take action as
necessary if there is no voluntary agreement to reduce
schedules.
Senate bill
No similar provision.
Conference Substitute
House bill modified by adding new section specifying that
the Administrator shall give priority to United States-
flagged air carriers in permitting additional operations
subsequent to any voluntary or non-voluntary reduction in
operations.

FLIGHT OPERATIONS AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT

H423/S737

House bill
Section 423 directs the Secretary of Transportation to
grant an additional ten beyond-perimeter exemptions (from 24
under current law to 34) at Washington Reagan National
Airport (DCA). It increases the number of operations by which
exemptions may increase operations during any one-hour period
between 7:00 AM and 9:59 PM, from three to five. The
Administrator is required to reduce the hourly air carrier
slot quota at DCA by ten slots in order to grant the
additional exemptions provided. These reductions are required
to be taken in the 6:00 AM, 10:00 PM or 11:00 PM hours.
Scheduling priority is to be given to new entrant air
carriers and limited incumbent air carriers over operations
conducted by air carrier grant exemptions. The highest
scheduling priority is given to beyond-perimeter operations
conducted by new entrant air carrier and limited incumbent
air carriers.
Senate bill
Section 737 creates additional beyond perimeter commercial
flights at DCA with 24 beyond-perimeter round trip flights
(10 to limited incumbents or new entrants and 14 to
incumbents) would be permitted, and an additional eight could
be added later if the Secretary of Transportation determines
that the first 24 did not negatively impact the airport. It
specifies that if an incumbent carrier that uses a slot for
service to a large hub airport within the perimeter receives
one or more the 24 additional beyond-perimeter round trip
flights authorized by this provision, it must discontinue the
use of that slot for within-perimeter service and, in place
of that service, operate beyond-perimeter service. It
prohibits the Secretary from granting any more than two slot
exemptions to an air carrier with respect to the same
airport, except in the case of an airport serving an area
with a population of more than 1 million. Any carrier
receiving an exemption for beyond-perimeter service is
prohibited from using multi-aisle or wide body aircraft, and
from selling, trading, leasing, or otherwise transferring the
rights to its beyond-perimeter exemptions, except through a
merger or acquisition, and must use the slot within 60 days
of receiving the exemption. If an incumbent carrier that uses
a slot for service to a large hub airport within the
perimeter receives one or more of the eight additional
exemptions authorized by this provision, it must discontinue
the use of that slot for within-perimeter service and, in
place of that service, operate beyond-perimeter service. It
authorizes Metropolitan Washington Aviation Authority (MWAA)
to use revenues derived at either DCA or Washington Dulles
International Airport (IAD) for operating and capital
expenses (including debt service, depreciation and
amortization) at the other airport.
Conference Substitute
House and Senate bills merged to direct the Secretary of
Transportation to grant 16 exemptions for additional beyond
perimeter commercial flights at Ronald Reagan Washington
National Airport (DCA). Of the 16 exemptions created, the
Secretary shall make eight available to limited incumbent air
carriers and new entrant air carriers. When allocating such
exemptions, the Secretary shall consider the extent to which
the exemptions will provide air transportation with domestic
network benefits in areas beyond the perimeter; increase
competition in multiple markets; not reduce travel options
for communities served by small hub airports and medium hub
airports within the perimeter; not result in meaningfully
increased travel delays; enhance options for nonstop travel
to and from the beyond-perimeter airports that will be served
as a result of those exemptions; have a positive impact on
the overall level of competition in the markets that will be
served as a result of those exemptions; or produce public
benefits, including the likelihood that the service to
airports located beyond the perimeter will result in lower
fares, higher capacity, and a variety of service options.
The Secretary shall also make available eight slot
exemptions for other incumbent air carriers qualifying for
status as a non-limited incumbent carrier at DCA. Each such
non-limited incumbent air carrier may operate up to a maximum
of two of the newly authorized slot exemptions. Each such
non-limited incumbent air carrier, prior to exercising an
exemption made available shall discontinue the use of a slot
for service between DCA and a large hub airport within the
perimeter, and operate, in place of such service, service
between DCA and an airport located beyond the perimeter. Each
such non-limited incumbent air carrier shall be

[[Page H285]]

entitled to return of the slot by the Secretary if use of the
exemption made available is discontinued; shall have sole
discretion concerning the use of an exemption including the
initial or any subsequent beyond perimeter destinations to be
served; and shall file a notice of intent with the Secretary
and subsequent notices of intent, when appropriate, to inform
the Secretary of any change in circumstances concerning the
use of any exemption. Such notices of intent shall specify
the beyond perimeter destination to be served and the slots
the carrier shall discontinue using to serve a large hub
airport located within the perimeter. Each such non-limited
incumbent air carrier operating an exemption may not operate
a multi-aisle or widebody aircraft in conducting such
operations and shall be prohibited from transferring the
rights to its beyond-perimeter exemptions.
The Secretary shall afford a scheduling priority to
operations conducted by new entrant air carriers and limited
incumbent air carriers over operations conducted by other air
carriers granted additional slot exemptions; a scheduling
priority to slot exemptions currently held by new entrant air
carriers and limited incumbent air carriers for service to
airports located beyond the perimeter to the extent necessary
to protect viability of such service; and consider
applications from foreign air carriers that are certificated
by the government of Canada if such consideration is required
by the bilateral aviation agreement between the U.S. and
Canada.
The exemptions granted by the Secretary may not be for
operations between the hours of 10:00 p.m. and 7:00 a.m.; and
may not increase the number of operations at DCA in any 1-
hour period during the hours between 7:00 a.m. and 9:59 p.m.
by more than five operations. A non-limited incumbent air
carrier utilizing an exemption for an arrival after 10:01
p.m. must discontinue use of an existing slot during the same
time period the arrival exemption is operated.
In determining a limited incumbent, the Secretary shall
consider any air carrier operating 40 or fewer slots at DCA.
The term `slot' shall not include slot exemptions; slots
operated by an air carrier under a fee-for-service
arrangement for another air carrier, if the air carrier
operating such slots does not sell flights in its own name,
and is under common ownership with an air carrier that seeks
to qualify as a limited incumbent and that sells flights in
its own name; or slots held under a sale and license-back
financing arrangement with another air carrier, where the
slots are under the marketing control of the other air
carrier. The Secretary shall prohibit the transfer of
exemptions except through an air carrier merger or
acquisition. The definition of airport purposes at the
Metropolitan Washington Aviation Authority (MWAA) shall
include a business or activity not inconsistent with the
needs of aviation that has been approved by the Secretary.

PASSENGER AIR SERVICE IMPROVEMENTS

H425/S401

House bill
Section 425 requires that within 90 days of enactment, air
carriers and each operator of a medium- or large-hub airport,
file emergency contingency plans with the Secretary of
Transportation for review and approval. Air carriers are
required to update their plans every three years and airports
must update every five years. The Secretary is also directed
to establish a toll-free consumer complaints hotline
telephone number for use of passengers. The Secretary is
instructed to take action to notify the public of the DOT's
consumer complaints hotline telephone number and related
website. Air carriers providing scheduled air service are
required to include on their website consumer complaints
hotline information for DOT and the air carrier as well as a
hotline telephone number on carrier signs displayed at
airport ticket counters, and on any electronic confirmation
of the purchase of a passenger ticket. It directs the
Secretary to establish a website that contains a listing of
the countries that may require a U.S. or foreign air carrier
to treat an aircraft passenger cabin with insecticides prior
to a flight to that country, or to apply an aerosol
insecticide in an aircraft cabin used for such a flight when
the cabin is occupied with passengers. Air carriers are
required to update their emergency contingency plans every
three years, and airport operators every five years.
Senate bill
Section 401 requires air carriers and airport operators to
develop contingency plans to address situations in which the
departure of a flight is substantially delayed while
passengers are confined to an aircraft. Each plan would have
to be submitted to the DOT for review and approval by the
Secretary of Transportation, and would be required to address
minimum standards established by the Department. At a
minimum, the plans for air carriers must outline how the
airline will guarantee that the passengers are provided: a)
adequate food, potable water, and restroom facilities; b)
cabin ventilation and comfortable cabin temperatures, and; c)
access to necessary medical treatment. It specifies that
airlines must allow passengers to deplane if three hours have
elapsed since the doors have closed and the aircraft has not
departed, or the aircraft has been landed for three hours but
passengers have been unable to deplane. Exceptions to the
deplane requirements would exist only when a pilot reasonably
believes that the aircraft will depart within 30 minutes, or
if the pilot believes that deplaning the passengers would
jeopardize passenger security or safety. Airport operators
would also be required to submit a plan to the DOT for
approval that provides for the deplanement of passengers
following extended tarmac delays. The Secretary would also be
required to perform periodic reviews of the air carrier and
airport operator plans, and would be authorized to impose
civil penalties on air carriers or airport operators that
fail to meet the requirements of such plans. It directs the
DOT to create a consumer complaint hotline telephone number.
Conference Substitute
House and Senate bills merged and modified. The modified
section includes House language requiring emergency
contingency plans by air carriers and modified to include
large, medium, small, and non-hub airports. Included in the
section is modified language that would give passengers the
option to deplane and return to airport terminal when there
is an excessive tarmac delay, except if there is a safety,
security or disruption of airport operations causes that
would result from deplanement. The Secretary of
Transportation is to determine the length of a tarmac delay
that would be deemed ``excessive''. Lastly, the section
includes House language on consumer complaints and use of
pesticides in a passenger aircraft.

DENIED BOARDING COMPENSATION

H428/S--

House bill
Section 428 requires the Secretary of Transportation to
evaluate, within six months of enactment and every two years
thereafter, the amount provided for denied boarding
compensation and issue a regulation to adjust such
compensation as necessary.
Senate bill
No similar provision.
Conference Substitute
Senate bill. The Department of Transportation is already
conducting a rulemaking on this subject.

DISCLOSURE OF PASSENGER FEES

H--/S405

House bill
No similar provision.
Senate bill
Section 405 directs the Secretary of Transportation to
complete a rulemaking that requires air carriers to provide
the public a list of charges, besides airfare (e.g., baggage
fees and meal fees), that the air carrier may be imposing on
passengers. The Secretary would be authorized to require an
air carrier to make the list of fees public, and the list
must be updated every 90 days unless there is no increase in
the amount or type of fees being imposed.
Conference Substitute
House bill.

DISCLOSURE OF AIR CARRIERS OPERATING FLIGHTS FOR TICKETS SOLD FOR AIR
TRANSPORTATION

H--/S406

House bill
No similar provision.
Senate bill
Section 406 requires the Office of Aviation Consumer
Protection in DOT to establish rules to ensure that all
consumers are able to easily and fairly compare airfares and
charges paid when purchasing tickets for air transportation,
including taxes and fees. This section requires taxes and
fees be disclosed on the website prior to the purchaser
providing personal information and makes failure to disclose
an ``unfair and deceptive practice.''
Conference Substitute
Senate provision dropped because it is included in P.L.
111-216, the Airline Safety and Federal Aviation
Administration Extension Act of 2010.

NOTIFICATION REQUIREMENTS WITH RESPECT TO THE SALE OF AIRLINE TICKETS

H--/S407

House bill
No similar provision.
Senate bill
Section 407 requires the Office of Aviation Consumer
Protection and Enforcement within the DOT to establish rules
to clarify what must be disclosed in an aviation fare quote
in order for consumers to easily and fairly compare airfares
and charges among carriers. It directs the Secretary of
Transportation, in consultation with the FAA, to prescribe
such regulations as may be necessary.
Conference Substitute
House bill.

EAS CONNECTIVITY PROGRAM

H--/S411

House bill
No similar provision.
Senate bill
Section 411 directs the Secretary of Transportation to
establish a program under which the DOT shall require, in up
to ten communities, that air carriers participating in
Essential Air Service (EAS), and major air carriers serving
large hub airports, participate in code-share arrangements,
consistent with normal industry practice, whenever and

[[Page H286]]

wherever the Secretary determines that such multiple code-
sharing arrangements would improve air transportation
services.
Conference Substitute
No provision.

EXTENSION OF FINAL ORDER ESTABLISHING MILEAGE ADJUSTMENT ELIGIBILITY

H--/S412

House bill
No similar provision.
Senate bill
Section 412 extends a provision that specifies that the
most commonly used route between an eligible place and the
nearest medium hub airport or large hub airport is to be used
to measure the highway mileage considered in reviewing any
action to eliminate compensation for EAS to such place, or
terminate the location's compensation eligibility for such
service. It would further terminate any such final order on
September 30, 2011.
Conference Substitute
Extends to September 30, 2015, the date on which the final
order issued under section 409 of Vision 100 shall terminate.

CONVERSION OF FORMER EAS AIRPORTS

H--/S414

House bill
No similar provision.
Senate bill
Section 414 requires the Secretary of Transportation to
establish a program to provide general aviation conversion
funding for airports serving eligible places that the
Secretary has determined no longer qualify as eligible places
for EAS subsidies.
Conference Substitute
No provision.

USE OF CERTAIN LANDS AT LAS VEGAS MCCARRAN INTERNATIONAL AIRPORT

H--/S434

House bill
No similar provision.
Senate bill
Section 434 authorizes Clark County, Nevada, to permit the
use of certain lands in the Las Vegas McCarran International
Airport Environs Overlay District for transient lodging and
associated facilities. This provision prohibits the
construction of facilities that would constitute a hazard to
air navigation, result in an increase to minimum flight
altitudes, or otherwise pose a significant adverse impact on
airport or aircraft operations.
Conference Substitute
House bill.

TITLE V--ENVIRONMENTAL STREAMLINING AND STEWARDSHIP

OVERFLIGHTS OF NATIONAL PARKS

H501/S709

House bill
Section 501 exempts operators in parks with 50 or fewer
annual air tour flights from the statutory permitting
requirement, with a provision for the National Park Service
(NPS) director to withdraw an exemption on a park-specific
basis if necessary to protect park resources or visitor
experiences. It allows NPS and FAA to enter into a voluntary
agreement with a commercial air tour operator as an
alternative to creation of an air tour management plan. FAA
and NPS must solicit public comments and must consult with
occupants of affected tribal lands before entering into a
voluntary agreement. It provides that a voluntary agreement
may require payment of overflight fees. The FAA and NPS are
permitted to terminate a voluntary agreement if: 1) NPS finds
the agreement no longer protects park resources; or 2) FAA
determines operations under the agreement adversely affect
safety or the national aviation system. It permits
modifications to interim operating authority, and allows a
grant of interim authority to a new entrant operator, if: 1)
the operator provides adequate information to NPS and FAA; 2)
FAA determines modification would not adversely affect safety
or the national aviation system; and 3) NPS determines
modification would not adversely affect park resources.
Commercial air tour operators must report the number of
commercial air tours over parks.
Senate bill
Section 709 allows air tour overflights over a national
park when a voluntary agreement has been reached between the
operator and the appropriate representative of the national
park. This section provides a waiver from the general rule
prohibiting tour operations over national parks for national
parks that have 100 or fewer air tour overflights each year.
The Secretary of the Interior is instructed to assess a fee
on commercial air tour operators operating over a national
park to be used to fund the development of air tour
management plans. It prescribes penalties for operators that
do not pay this fee. This section provides the Director of
NPS with flexibility in determining how to manage air tours
at Crater Lake National Park.
Conference Substitute
House bill modified to include language on flexibility for
Crater Lake National Park.

STATE BLOCK GRANT PROGRAM

H502/S209

House bill
Section 502 requires the issuance of guidance for carrying
out the AIP State Block Grant Program (SBGP) rather than
regulations. It adds to required standards a State must agree
to meet in order to be eligible for a grant under the program
with: National Environmental Policy Act (NEPA) of 1969
standards, state and local environmental policy acts,
executive orders, agency regulations and guidance, and other
federal environmental requirements. Furthermore, it adds a
provision that requires any federal agency, except the FAA,
that is responsible for issuing an approval, license or
permit to ensure compliance with a federal environmental
requirement applicable to a project to be carried out by a
State using funds from a block grant must: 1) coordinate and
consult with the State; 2) use the environmental analysis
prepared by the State for the project; and 3) supplement such
analysis as necessary.
Senate bill
Section 209 codifies current practice that State
participants in the State Block Grant Program have
responsibility and authority to comply with applicable
environmental requirements for projects at non-commercial
service airports within the purview of the SBGP. The FAA
administers the SBGP by authorizing participating states once
a year to receive a block of funds for any eligible non-
primary airport project. This section would make a minor
change to 49 U.S.C. section 47128(a) by replacing the term
``regulations'' with ``guidance'' because the FAA has issued
guidance in the form of the AIP Handbook, 5100.38, to
implement its airport improvement program. It establishes a
pilot program for up to three States that are currently not
in the program to participate in the program.
Conference Substitute
House bill.

AIRPORT FUNDING OF SPECIAL STUDIES OR REVIEWS

H503/S210

House bill
Section 503 authorizes the FAA to accept funds from airport
sponsors to conduct: 1) special environmental studies for
ongoing federally-funded airport projects; 2) special studies
to support approved airport noise compatibility measures or
environmental mitigation commitments in an agency record of
decision or a finding of no significant impact; and 3) a
review and completion of environmental activities associated
with new or amended flight procedures, including performance-
based navigation procedures and area navigation procedures.
Senate bill
Section 210 is a similar provision.
Conference Substitute
House bill.

GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT PROCEDURES

H506/S211

House bill
Section 506 authorizes grants to airport operators to
assist in completing environmental review and assessment
activities for proposes to implement flight procedures that
have been approved for airport noise compatibility planning
purposes. It permits the Administrator to accept funds from
an airport sponsor, including funds provided in noise
compatibility planning grants, to hire additional staff or
consultants to facilitate timely review and competition of
environmental activities associated with the proposed changes
in flight procedures. Funds received under this section shall
be credited as offsetting collections to the account that
finance the activities and services for which the funds are
accepted; shall be available for expenditure only to pay the
costs of activities and services for which the funds are
accepted; and shall remain available until expended.
Senate bill
Section 211 is a similar provision, but it specifies that
funds received under this authority are exempt from the
procedures applicable to gifts received by the Administrator.
Conference Substitute
House bill.

DETERMINATION OF FAIR MARKET VALUE OF RESIDENTIAL PROPERTIES

H507/S--

House bill
Section 507 requires the Secretary of Transportation to
ensure that an appraisal for fair market value of any
property to be acquired disregards any decrease or increase
in the value caused by the project for which the property is
being acquired or by the likelihood that the property would
be acquired. It directs that physical deterioration within
reasonable control of the owner should be considered.
Senate bill
No similar provision.
Conference Substitute
House bill.

PROHIBITION ON OPERATING CERTAIN AIRCRAFT WEIGHING 75,000 POUNDS OR
LESS NOT COMPLYING WITH STAGE 3 NOISE LEVELS

H508/S710

House bill
Section 508 requires that all civil subsonic jet aircraft
under 75,000 pounds must meet Stage 3 noise levels within the
48 contiguous states by December 31, 2016, with some
exceptions for the following types of temporary

[[Page H287]]

operations: 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 at an overseas maintenance facility; 5) to
deliver the aircraft to an operator leasing the aircraft from
the owner or return the aircraft to the lessor; 6) to
prepare, park, or store aircraft in anticipation of above
activities; 7) to provide transport of persons or goods in an
emergency situation; and 8) to divert the aircraft to an
alternative airport on account of weather, or safety reasons.
It authorizes the Secretary of Transportation to prescribe
regulations as necessary.
Senate bill
Section 710 is a similar provision with minor technical
differences, including a different deadline set at December
31, 2014. Airports are allowed to opt-out of this
prohibition, at which time the Secretary of Transportation
will post notices on its website or another place easily
accessible to the public.
Conference Substitute
House bill modified, moving the deadline to December 31,
2015.

AIRCRAFT DEPARTURE QUEUE MANAGEMENT PILOT PROGRAM

H509/S--

House bill
Section 509 directs the Secretary of Transportation to
carry out a pilot program at up to five public-use airports
to design, develop, and test new air traffic flow management
technology to better manage the flow of aircraft on the
ground and reduce ground holds and idling times for aircraft.
In selecting participating airports, the Secretary must give
priority consideration to airports at which improvements in
ground control efficiencies are likely to achieve the
greatest fuel savings or air quality or other environmental
benefits, as measured by the amount of reduced fuel, reduced
emissions, or other environmental benefits. No more than $2.5
million may be expended at any single public-use airport.
Senate bill
No similar provision.
Conference Substitute
House bill.

HIGH-PERFORMANCE, SUSTAINABLE, AND COST-EFFECTIVE ATC FACILITIES

H510/S--

House bill
Section 510 requires the implementation of sustainable
practices for the incorporation of energy-efficient design,
equipment, systems and other measures in the construction and
major renovation of air traffic control facilities to the
maximum extent practicable.
Senate bill
No similar provision.
Conference Substitute
House bill.

SENSE OF CONGRESS

H511/S--

House bill
Section 511 expresses Sense of Congress that the European
Union (EU) should not extend its emissions trading proposal
to international civil aviation operations without working
through International Civil Aviation Organization (ICAO) and
other relevant air services agreements, and that the EU
should work with ICAO to develop a consensual approach to
addressing aircraft greenhouse gas emissions. It expresses
the Sense of Congress that the U.S. Government should use all
political, diplomatic, and legal tools at their disposal to
ensure that the EU's emission trading scheme is not applied
to aircraft registered by the U.S. or the operators of those
aircraft, including the mandates that U.S. carriers provide
emissions data to and purchase emissions allowances from or
surrender emissions allowances to the EU Member states.
Senate bill
No similar provision.
Conference Substitute
House bill.

AVIATION NOISE COMPLAINTS

H512/S--

House bill
Section 512 requires owners or operators of a large hub
airport to publish a telephone number to receive noise
complaints on the airport's website within 90 days of
enactment. Any owner or operator who receives 25 or more
complaints per year will be required to submit an annual
report to the FAA regarding the number of complaints and a
summary of the nature of the complaints, which the
Administrator must make available to the public
electronically.
Senate bill
No similar provision.
Conference Substitute
House bill modified to remove the annual reporting
requirement.

NEXTGEN ENVIRONMENTAL EFFICIENCY PROJECTS STREAMLINING

H503/S--

House bill
Section 503 incorporates NextGen environmental efficiency
projects into projects that are subject to streamlined
environmental review and given high priority in environmental
review. These include: 1) an airport capacity enhancement
project at a congested airport; and 2) a NextGen
environmental efficiency project at the 35 largest airports
(i.e., OEP airports) or any congested airports. It also
clarifies the jurisdictional agencies and the lead agency
responsibility for these projects. Defines ``NextGen
environmental efficiency project'' as a NextGen project that
develops and certifies performance-based navigation
procedures; or develops other environmental mitigation
projects the Secretary of Transportation may designate as
facilitating a reduction in noise, fuel consumption, or
emissions from air traffic operations.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

NOISE COMPATIBILITY PROGRAMS

H505/S--

House bill
Section 505 requires operators applying for noise
compatibility programs to state the measures they have taken
or propose to take to reduce existing noncompatible uses and
prevent introducing additional noncompatible uses in the
area. It adds as one of the measures, conducting
comprehensive land use planning jointly with neighboring
local jurisdictions for community redevelopment in an area in
which land or other property interests have been acquired by
the operator, to encourage and enhance redevelopment
opportunities that reflect zoning and uses that will prevent
the introduction of additional incompatible uses and enhance
redevelopment potential.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

ENVIRONMENTAL MITIGATION DEMONSTRATION PILOT PROGRAM

H--/S213

House bill
No similar provision.
Senate bill
Section 213 authorizes the Secretary of Transportation to
carry out up to six environmental mitigation projects at
public-use airports and make grants under special
apportionment funding for these demonstrations. To be
eligible for the pilot program, an airport would be required
to be open to the public, with priority consideration given
to projects that would achieve the greatest reductions in
aircraft noise, airport emissions, or airport water quality
impacts. The federal government would be limited to providing
50 percent of the cost for the projects and limited to a
total amount per project of $2.5 million.
Conference Substitute
House bill.

PILOT PROGRAM FOR ZERO EMISSION AIRPORT VEHICLES

H--/S609

House bill
No similar provision.
Senate bill
Section 609 requires the Secretary of Transportation to
establish a pilot program to foster the acquisition and use
of zero emission vehicles on airports. Priority is given to
those airports in non-attainment areas and where the greatest
air quality benefits will be achieved. In 18 months, the
Secretary of Transportation shall report to Congress on the
effectiveness of the pilot program.
Conference Substitute
Senate bill modified to: change ``shall'' to ``may'' when
directing the Secretary of Transportation to establish a
pilot program; allowing public-use airports to be eligible in
the pilot program; permitting the Secretary of Transportation
to consider applications from public-use airports not in the
prescribed areas if there is a shortage of applicants; and
allowing participants to use university transportation
centers. New language is added that: establishes performance
measures; creates assessments of the data collected used in
the program; and makes a technical change.

INCREASING THE ENERGY EFFICIENCY OF AIRPORT POWER SOURCES

H--/S610

House bill
No similar provision.
Senate bill
Section 610 requires the Secretary of Transportation to
establish a program to encourage airport operators to assess
their energy requirements and identify ways to reduce
emissions and increase energy efficiency. The Secretary of
Transportation may make grants to eligible airports to
acquire or construct equipment and infrastructure to reduce
emissions and improve energy efficiency.
Conference Substitute
Senate bill modified by removing references to ``reducing
harmful emissions'' and makes minor technical corrections.

TITLE VI--EMPLOYEES AND ORGANIZATION

FAA PERSONNEL MANAGEMENT SYSTEM

H601/S313

House bill
Section 601 reforms the process by which the FAA resolves
labor disputes with employee unions arising in the collective
bargaining process. It requires the FAA and employee
representatives to use the services of

[[Page H288]]

the Federal Mediation and Conciliation Service (FMCS). If
they are unable to come to an agreement on labor issues, or,
by mutual agreement, they may adopt alternate procedures to
resolve disputes. If the mediation is unsuccessful, the
parties must submit their issues to the Federal Service
Impasses Panel (FSIP) that will assist the parties in
resolving the dispute by asserting jurisdiction and ordering
binding arbitration by a private arbitration board of three
members. The board will result from Executive Director of the
FSIP will request a list of 15 names from the Director of the
FMCS, the parties will select one arbitrator each from the
list, and the two arbitrators selected with then choose the
third. The arbitration board must render a decision within 90
days after the date of its appointment, and take into account
the following factors: 1) the effect of its decision on the
FAA's ability to attract and retain a qualified workforce; 2)
the effect of its decision on the FAA budget; 3) the effect
of its decision on other FAA employees; and 4) any other
factors that would assist the board in reaching a fair
resolution. Upon reaching a voluntary agreement or at the
conclusion of the binding arbitration, the final agreement
will be subject to ratification by the exclusive bargaining
representative of the employees, if so requested by the
bargaining representative. The final agreement must also be
approved by the head of the agency.
Senate bill
Section 313 is a similar provision, but it specifies that
jurisdiction over enforcement claims is limited to the U.S.
District Court for the District of Columbia.
Conference Substitute
House bill modified by deleting language directing the
board to take into consideration ``the effect of its
arbitration decisions on other Federal Aviation
Administration employees'' in making decisions.

PRESIDENTIAL RANK AWARD PROGRAM

H602/S307

House bill
In 1996, the FAA reformed its personnel system under
special authority provided by Congress (now codified under 49
U.S.C. section 40122), which exempted the FAA from many
requirements of the federal government's personnel system,
including the Presidential Rank Award Program. Section 602
would change the exemption and, through an amendment to 49
U.S.C. section 40122, allow the FAA's executives and senior
professionals to participate in the program.
Senate bill
Section 307 is the same provision.
Conference Substitute
House bill.

COLLEGIATE TRAINING INITIATIVE STUDY

H608/S--

House bill.
Section 608 requires the U.S. Government Accountability
Office to conduct a study on training options for graduates
of the Collegiate Training Initiative, and submit the study
to Congress within six months of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.

FRONT LINE MANAGER STAFFING

H610/S716

House bill
Section 610 requires the Administrator to commission an
independent study on front-line manager staffing requirements
in air traffic control facilities, and submit the final
report to Congress within nine months of enactment. Some
considerations to take into account are: managerial tasks;
number of supervisory positions; coverage requirements in
relation to traffic demands; facility type; complexity of
traffic and managerial responsibilities; and proficiency and
training requirements.
Senate bill
Section 716 requires the Administrator within 45 days after
enactment to study air traffic control front line manager
staffing requirements and submit any determinations made as a
result of the study to the Congress within six months after
enactment.
Conference Substitute
House bill.

FAA TECHNICAL TRAINING AND STAFFING

H603/S708(a),(b)

House bill
Section 603 requires the Administrator to conduct a study
on the adequacy of FAA's technical training strategy and
improvement plan for FAA transportation systems specialists.
The plan must include: recommendations to improve technical
training strategy and improvement planning; a description of
actions having been undertaken; and recommendations regarding
cost-effective approaches to training. The FAA is to report
to Congress within one year of enactment. It directs the
Administrator to contract with the National Academy of
Sciences within 90 days of enactment to conduct a study on
the assumptions and methods FAA uses to estimate staffing
needs for FAA transportation systems specialists and to
ensure proper maintenance and certification in the most cost-
effective manner. The Academy must submit its report to
Congress one year after contracted.
Senate bill
Section 708(a) and (b) similar provisions but it requires
the U.S. Government Accountability Office (GAO) to study FAA
Airway Transportation Systems Specialists training and report
to Congress within a year of enactment. It includes air
traffic controllers and engineers as part of the study; and,
the Academy must report to Congress on its study 24 months
after the date of execution of the contract for the study.
Conference Substitute
House bill modified removing language requiring the study
to be done in the most cost effective manner. The modified
provision directs the National Academy of Sciences, when
conducting the study on the assumptions and methods used by
FAA to estimate staffing needs for FAA systems specialists,
to consult with the exclusive bargaining representative of
systems specialists. Additionally, language was added
requiring the National Academy of Sciences to ``include
recommendations for objective staffing standards that
maintain the safety of the national airspace.''

SAFETY CRITICAL STAFFING

H604/S708(c),(d)

House bill
Section 604 requires the Administrator to implement, to the
extent practicable and in the most cost-effective manner, the
staffing model for aviation safety inspectors by October 1,
2011, following the recommendations outlined in the
``Staffing Standards for Aviation Inspectors'' report issued
by the National Academy of Sciences in 2007. The FAA is
required to consult with interested parties, including
aviation safety inspectors, and submit the staffing model to
Congress on an annual basis.
Senate bill
Section 708(c) and (d) directs the FAA to increase
inspector staffing to levels in its staffing model. The
Administrator is required to develop a staffing model for
aviation safety inspectors, but differs from the House in
that it allows 12 months from the date of enactment,
development of a staffing model, but does not require the
Administrator to follow the Academy's recommendations, and
requires inspector staffing levels to be at least at the
levels indicated in the staffing model. It specifies that no
later than 180 days after enactment, the Administrator shall
submit a report to Congress on the future of flight service
stations in Alaska. The report will include: 1) an analysis
of the number of flight service specials needed; 2) training
needed and need for formal training and hiring program; 3) a
schedule for necessary inspections, 4) upgrades and
modernization of stations and equipment; and 5) a description
of interaction between flight service stations operated by
FAA and those operated by contractors.
Conference Substitute
House bill modified to require the FAA to consult with the
exclusive bargaining representative for aviation safety
inspectors when implementing the staffing model.
Additionally, the date of the report was changed from October
1 of each year to January 1 of each year.

AIR TRAFFIC CONTROL SPECIALIST QUALIFICATION TRAINING AND SCHEDULING

H606/S--

House bill
Section 606 authorizes the Administrator to appoint
qualified air traffic control (ATC) specialist candidates for
placement directly in ATC facilities. ATC specialists will
receive the same benefits and compensation as any other
developmental controller. Within 18 months after enactment,
the FAA will submit to Congress a report that evaluates the
effectiveness of the ATC specialist qualification training.
If the Administrator determines that ATC specialists are more
qualified in carrying out duties than ATC specialists hired
from general public, the Administrator shall increase the
number of appointments of candidates with such certification.
It includes reimbursement for travel expenses associated with
certifications from education entity that provided the
training.
Senate bill
No similar provision.
Conference Substitute
House modified to change the due date of the required
report from 18 months after enactment to two years after
enactment.

FAA AIR TRAFFIC CONTROLLER STAFFING

H605/S708

House bill
Section 605 directs the FAA to enter into an arrangement,
within 90 days, with the National Academy of Sciences to
conduct a study of the air traffic controller standard used
by the FAA to estimate staffing needs for FAA air traffic
controllers to ensure the safe operation of the NAS in the
most cost-effective manner. The study must include
examination of representative information on productivity,
human factors, traffic activity, and improved technology on
ATC, as well as an examination of recent Academy reviews of
models from MITRE, and consideration of Administration's
current and estimated budgets. The Academy is required to
consult employee groups and industry representative in
conducting the study. The Academy must transmit the study to
Congress within two years of enactment.
Senate bill
Section 708 is a similar provision, but it includes Airway
Transportation Systems Specialists and engineers as part of
the study.

[[Page H289]]

Conference Substitute
House bill modified to require the National Academy of
Sciences to consult with the exclusive bargaining
representative of air traffic controllers in conducting the
study.

ASSESSMENT OF FAA AIR TRAFFIC CONTROLLER TRAINING PROGRAMS

H607/S516

House bill
Section 607 requires the Administrator to conduct a study
to assess the adequacy of training programs for air traffic
controllers, including the FAA's technical training strategy
and improvement plan, and submit the study to Congress within
six months of enactment. The study will include a review of
current training systems, an analysis of competencies
required of air traffic control for successful performance,
an analysis of competence projected to be required in
NextGen, an analysis of various training approaches,
recommendations to improve current training system, and the
most cost effective approach.
Senate bill
Section 516 requires FAA to conduct a comprehensive review
of its Academy and facility training efforts, and establish
standards to identify the number of developmental controllers
that can be accommodated by each facility.
Conference Substitute
House and Senate bills modified and merged. This section
includes Senate and House language, with language added
requiring the Inspector General of the Department of
Transportation to conduct an assessment of FAA's air traffic
controller scheduling practices.

FAA FACILITY CONDITIONS

H609/S323

House bill
Section 609 requires the U.S. Government Accountability
Office to conduct a study of the conditions of a sampling of
FAA facilities across the U.S., including towers, centers,
offices and Terminal Radar Approach Control Facilities
(TRACONs), as well as reports from employees relating to
health conditions resulting from exposure to mold, asbestos,
poor air quality, radiation and facility-related hazards in
FAA facilities; conditions of facilities that could interfere
with employee's ability to perform their duties; the ability
of managers and supervisors to promptly document and seek
remediation for unsafe facility conditions; whether employees
of the Administration who report facility-related illness are
treated appropriately; and utilization of scientific
remediation techniques to mitigate hazardous conditions. Its
findings must be submitted to the FAA and Congress. Based on
the results of the GAO study, the GAO is directed to make
recommendations on which facilities are in need of immediate
attention, and assist the Administration in making
programmatic changes so that aging facilities do not
deteriorate to unsafe levels. The GAO is required to submit
its report to Congress within one year of enactment.
Senate bill
Section 323 directs the FAA to create a task force on air
traffic control (ATC) facility conditions. This task force
must be composed of 11 members (7 appointed by the
Administrator and four appointed by employees' unions). Four
members are required to have expertise in hazardous building
conditions and two members must have expertise in
rehabilitation of aging buildings. This task force will have
the power to obtain official data. The task force's duties
would include studying: 1) the conditions of all ATC
facilities; 2) reports from employees; 3) whether employees
who reported illness were treated fairly; 4) utilization of
remediation techniques; and 5) resources allocated to
facility maintenance and renovation. Also, the task force
would be required to make recommendations necessary to ensure
that: 1) facilities needing the most immediate attention are
prioritized; 2) the Administration is using scientifically
approved remediation techniques; and 3) ATC facilities do not
deteriorate to unsafe levels. The task force also must submit
a report to Congress and the Administrator regarding its
recommendations and activities within 60 days. The
Administrator would be required to submit a plan and timeline
to implement the task force's recommendations within 30 days
after receiving the task force's report.
Conference Substitute
House bill.

TECHNICAL CORRECTION

H--/S707

House bill
No similar provision.
Senate bill
Section 707 provides technical corrections to guarantee
that the Merit Systems Protection Board has jurisdiction to
investigate claims made against FAA, and has the enforcement
ability at the agency that it does for all other federal
employees.
Conference Substitute
Senate bill.

BACK PAY

H--/S707(4)(J)

House bill
No similar provision.
Senate bill
Section 707(4) (J) restores application of the Back Pay Act
to FAA employees prospectively (i.e., does not have
retroactive application to previously decided MSPB cases).
Conference Substitute
House bill.

FAMILY MEDICAL LEAVE ACT

H--/S707(4)(K)

House bill
No similar provision.
Senate bill
Section 707(4)(K) restores protections of Title II of the
Family and Medical Leave Act (FMLA) for FAA employees. In
contrast with Title I, there is no individual right of action
and employee makes determination as to start of FMLA leave.
Conference Substitute
House bill.

TITLE VII--AVIATION INSURANCE

GENERAL AUTHORITY

H701/S701(c)

House bill
Section 701 requires the Secretary of Transportation to
extend the current aviation war risk insurance policies until
September 30, 2013, and authorizes the Secretary to extend
them until December 31, 2013. After December 31, 2021,
coverage for the risks provided by the extended policies
shall be provided in an airline industry sponsored risk-
sharing arrangement approved by the Secretary. Premiums
collected by the Secretary from the airline industry after
September 22, 2001, through December 31, 2021, for any policy
under this subsection, plus interest and less paid or pending
claims, must be transferred to risk-sharing arrangement
approved by the Secretary.
Senate bill
Section 701(c) is a similar provision, but it does not
authorize a follow-on industry shared-risk program.
Conference Substitute
House bill modified to remove language creating a successor
program.

EXTENSION OF AUTHORITY TO LIMIT THIRD PARTY LIABILITY

H702/S701(a)

House bill
Section 702 extends for air carriers the current limitation
of liability to third parties for losses arising out of acts
of terrorism to December 31, 2013. Current law (section
44303(b)) allows the Secretary of Transportation to limit an
airline's third-party liability to $100 million and also
prohibits punitive damages against either an airline or the
Government for any cause resulting from a terrorist event. A
principal objective of the limitation was to encourage
commercial insurance companies to provide a reasonably priced
amount of third party war risk insurance by defining the
maximum third party liability exposure of the airline for a
single event. The provision was later expanded by Congress at
the request of aircraft manufacturers and aircraft engine
manufacturers to permit DOT to similarly limit third-party
liability for these parties.
Senate bill
Section 701(a) is the same provision.
Conference Substitute
House bill.

CLARIFICATION OF REINSURANCE AUTHORITY

H703/S--

House bill
Section 703 amends the reinsurance section in title 49
U.S.C. to clarify that the DOT may, as a risk mitigation
technique, purchase reinsurance from commercial reinsurers to
supplement payment of claims from the aviation insurance
revolving fund.
Senate bill
No similar provision.
Conference Substitute
House bill.

USE OF INDEPENDENT CLAIMS ADJUSTERS

H704/S--

House bill
Section 704 authorizes the FAA to use commercial insurance
carriers to underwrite insurance and adjust claims, and to
use claims adjusters independent of an insurance underwriting
agent. This permits expedited claims in the U.S. and foreign
jurisdictions.
Senate bill
No similar provision.
Conference Substitute
House bill.

TITLE VIII--MISCELLANEOUS

DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST OF NATIONAL SECURITY

H801/S--

House bill
Section 801 clarifies that the FAA has limited authority to
release data and reports that are pulled from the FAA's
record systems, which are subject to the Privacy Act, to
other federal agencies in the interest of national security.
Senate bill
No similar provision.
Conference Substitute
House bill.

FAA AUTHORITY TO CONDUCT CRIMINAL HISTORY RECORD CHECKS

H802/S505
House bill
Section 702 provides legal authority for the FAA to
continue to access the National

[[Page H290]]

Crime Information Center and related State criminal history
databases for certification purposes only to conduct a
criminal history background check of an airman in the
criminal repositories of the Federal Bureau of Investigation
and States by submitting fingerprint based repository in
compliance with the National Crime Prevention and Privacy
Compact Act, and to receive relevant criminal history record
regarding airman check. In accessing repository information,
the FAA shall be subject to procedures established by the
Departments of Justice or State as appropriate. The
Administrator may not use authority to conduct criminal
investigations. The Administrator shall receive reimbursement
to process the fingerprint based checks in providing these
services. The Administrator shall designate employees of the
FAA to carry out these actions.
Senate bill
Section 505 is a similar provision.
Conference Substitute
House bill.

CIVIL PENALTIES TECHNICAL AMENDMENTS

H803/S--

House bill
Section 803 applies civil penalties to violations of
chapter 451 on Alcohol and Controlled Substance Testing.
Senate bill
No similar provision.
Conference Substitute
House bill.

CONSOLIDATION AND REALIGNMENT OF FAA SERVICES AND FACILITIES

H804/S308

House bill
Section 804 directs the Administrator to develop proposed
criteria for use in making recommendations for the
realignment and consolidation of FAA services and facilities,
and publish the proposed criteria within 30 days of
enactment. The proposed criteria would be open to public
comment for 30 days, and the FAA must publish final criteria
within 90 days of enactment. It requires the Administrator to
make recommendations for the realignment and consolidation of
FAA services based on the final criteria and a justification
for each recommendation. This information will be published
and transmitted to Congress within 120 days of enactment. The
Administrator is directed to submit the recommendations to a
new Aviation Facilities and Services Board (not subject to
the Federal Advisory Committee Act), consisting of: the
Secretary of Transportation (DOT) or designee; two private
sector members appointed by the DOT Secretary; and a U.S.
Government Accountability Organization (GAO) representative
(to be a non-voting member). Members would serve for three
year terms. The Board will hold public hearings and develop a
final report (with GAO input if requested by the Board)
containing the Board's findings and conclusions based on
public comments. The Board must publish the report and
transmit a copy to Congress. The Administrator is prohibited
from carrying out a Board recommendation if Congress passes a
joint resolution of disapproval within 30 days of issuance of
the Board's report. It authorizes the Administrator to make
additional recommendations every two years. It specifies that
Members of the Board will not receive compensation except for
work injuries or travel expenses. The Administrator shall
make available to the Board such staff, information and
administrative services as may be required enabling the Board
to carry out its responsibilities. In order for the Board to
carry out its duties, the Administrator is authorized to
appropriate for each of FYs 2011 through 2014, $200,000 to
carry out this section.
Senate bill
Section 308 creates a specific process for the FAA to
complete a comprehensive study and analysis of the how the
agency might realign its services and facilities to help
reduce capital, operating, maintenance, and administrative
costs on an agency-wide basis with no adverse effect on
safety. The FAA would be required to develop criteria for
realignment within nine months of passage and make any
recommendations for action within nine months of the
publication of the criteria. The Air Traffic Control
Modernization Oversight Board would then be required to study
the FAA's recommendations, provide opportunity for public
comment, and report the Board's recommendations to Congress.
The Administrator would be prohibited from consolidating
additional approach control facilities into the Southern
California TRACON, the Northern California TRACON, the Miami
TRACON, or the Memphis TRACON until the Board's
recommendations are completed.
Conference Substitute
House and Senate bills merged and modified. The language
now requires the Administrator to develop, in conjunction
with the Chief NextGen Officer and Chief Operating Officer of
the Air Transportation Organization, a National Facilities
Realignment and Consolidation Report within 120 days of
enactment and allow 45 days for the submission of public
comments on that report. The report shall be developed
with the participation of: 1) representatives of labor
organizations representing operations and maintenance
employees of the air traffic control system; and 2)
industry stakeholders. The purpose of this report is to
support the transition to NextGen and to reduce capitol,
operating, maintenance, and administrative costs of the
FAA without adversely affective safety. The report shall
include recommendations with justification and project
costs and savings. It instructs the Administrator to
submit a report to Congress within 60 days after the last
day of the public comment period on the Administrator's
recommendations on realignment and consolidation of
services and facilities of the FAA and it directs the
Administrator to follow this report during the realignment
process. It maintains the House language on Congressional
Disapproval which prohibits the Administrator for carrying
out recommendation in the report should a joint resolution
of disapproval be enacted within 30 days of submission of
the report to Congress.

LIMITING ACCESS TO FLIGHT DECKS OF ALL-CARGO AIRCRAFT

H805/S--

House bill
Section 805 requires the FAA, within 180 days of enactment,
to assess the feasibility of developing a physical means, or
a combination of physical and procedural means, to prohibit
individuals, other than authorized flight crewmembers, from
accessing the flight decks of all-cargo aircraft. It requires
a report within one year of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.

CONSOLIDATION OR ELIMINATION OF OBSOLETE, REDUNDANT, OR OTHERWISE
UNNECESSARY REPORTS; USE OF ELECTRONIC MEDIA

H806/S721

House bill
Section 806 requires the Administrator to issue a report
containing a list of obsolete, redundant, or otherwise
unnecessary reports that the FAA is required by law to submit
to the Congress or publish. It requires an estimate of the
cost savings that would result from the elimination or
consolidation of those reports.
Senate bill
Section 721 is an identical provision.
Conference Substitute
House and Senate bills.

PROHIBITION ON USE OF CERTAIN FUNDS

H807/S--

House bill
Section 807 prohibits the Secretary of Transportation from
using funds available in this act to name, rename, designate
or redesignate any authorized project or program after an
individual who is currently serving in Congress.
Senate bill
No similar provision.
Conference Substitute
House bill.

STUDY ON AVIATION FUEL PRICES

H808/S727

House bill
Section 808 requires the U.S. Government Accountability
Office (GAO) to conduct a study and report to Congress within
180 days of enactment on the impact of aviation fuel price
increases on the Airport and Airway Trust Fund and the
aviation industry in general.
Senate bill
Section 727 is an identical provision.
Conference Substitute
Senate bill.

WIND TURBINE LIGHTING

H809/S611

House bill
Section 809 directs the Administrator to conduct a study,
make recommendations, and report to Congress on wind turbine
lighting systems within one year of the date of enactment.
The study and recommendations must include the effect of wind
turbine lighting on residential areas, the safety associated
with alternative lighting strategies, the potential energy
savings, and the feasibility of implementing alternative
lighting strategies.
Senate bill
Section 611 requires the Administrator to survey and assess
the leases for critical FAA facility sites and determine how
close these facilities are to wind farms or areas suitable
for the construction of wind farms. Following the assessment,
the FAA would be required to report to Congress and the U.S.
Government Accountability Office (GAO) on its findings and
recommendations. It would require the GAO to assess the
potential impact wind farms have on the FAA's navigational
aids and would require an assessment on methods and
restrictions to mitigate the effects of wind farms on
navigational aids. Upon receiving the GAO report, the FAA
would be directed to issue guidelines for the construction of
wind farms near critical FAA facilities.
Conference Substitute
House bill.

AIR-RAIL CODE SHARING STUDY

H810/S725

House bill
Section 810 directs the U.S. Government Accountability
Office (GAO) to conduct a study regarding existing airline
and intercity passenger rail code-sharing arrangements, and
the feasibility of increasing

[[Page H291]]

intermodal connectivity of airline and intercity passenger
rail facilities and systems to improve passenger travel, and
submit the study to Congress within six months of enactment.
The GAO is directed to consider: 1) the potential costs to
taxpayers and other parties, and the benefits of the
implementation of more integrated scheduling between airlines
and Amtrak or other intercity passenger rail carriers; 2)
airport and intercity passenger rail operations that can
improve connectivity between airports and intercity passenger
rail facilities; 3) the experience of other countries with
airport and intercity passenger rail connectivity; and 4)
other issues the GAO deems appropriate.
Senate bill
Section 725 is a similar provision, but the GAO
considerations are not as extensive. It requires the report
to be completed within one year.
Conference Substitute
House bill.

D.C. METROPOLITAN AREA SPECIAL FLIGHT RULES AREA

H811/S--

House bill
Section 811 requires the Administrator to work with the
Secretaries of Defense and Homeland Security on a plan to
decrease the operational impacts and improve general aviation
access to the Washington, D.C. region impacted by the D.C.
Metropolitan Area Special Flight Rules Area, and submit the
plan to Congress within six months of enactment. The plan
must outline specific changes to the D.C. Metropolitan Area
Special Flight Rules Area that will decrease operational
impacts and improve general aviation access to airports in
the Washington, D.C. region that are currently impacted by
the zone.
Senate bill
No similar provision.
Conference Substitute
House bill.

FAA REVIEW AND REFORM

H812/S--

House bill
Section 812 requires the Administrator to undertake a
thorough review of each program, office, and organization
within the FAA, including the Air Traffic Organization, to
identify: 1) duplicative positions, programs, roles or
offices; 2) wasteful practices; 3) redundant, obsolete, or
unnecessary functions; 4) inefficient processes; and 5)
ineffectual or outdated policies. Directs the Administrator
to undertake such actions as may be necessary to address the
findings of the review, streamline and reform FAA functions,
and submit a report to Congress within 150 days of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.

USE OF MINERAL REVENUE AT CERTAIN AIRPORTS

H815/S224

House bill
Section 815 specifies that the FAA may declare certain
revenue derived from, or generated by mineral extraction at a
general aviation airport to be revenue greater than the long
term projects, operation, maintenance, planning and capacity
needs of the airport. If the Administrator issues a
declaration, the airport sponsor may allocate to itself or
governing body within limits of the airport's locality the
revenue identified in declaration for use in carrying out a
Federal, State or local transportation infrastructure
project. In generating revenue from mineral rights the
airport sponsor shall not charge less than fair market value.
The airport sponsor and Administrator shall agree on a 20
year capital improvement program that includes projected
costs, charges and fees. Furthermore, the airport sponsor
shall agree in writing to waive all rights to receive
entitlement funds or discretionary funds, and operate as a
public-use airport until the Administrator grants a request
to allow airport to close. The airport sponsor shall create a
provisional fund for current and future environmental
impacts, assessments and mitigation plans. The Administrator
shall conduct review and issue a determination within 90 days
following receipt of an airport sponsor's application and
requisite documentation.
Senate bill
Section 224 is a similar provision, but it contains a five
year capital improvement program.
Conference Substitute
Senate bill.

CONTRACTING

H818/S--

House bill
Section 818 permits the Administrator to conduct a review,
and submit to relevant Committees, a report describing how
FAA weighs economic vitality of a region when considering
contract proposals for training facilities.
Senate bill
No similar provision.
Conference Substitute
House bill modified by removing language on ``economic
vitality'' and inserting language that requires: 1) the
proposal is drafted so that all parties can fairly compete;
and 2) the proposal takes into consideration the most cost-
effective location, accessibility, and services options.

FLOOD PLANNING

H819/S--

House bill
Section 819 permits the Administrator, in consultation with
the Federal Emergency Management Administration, to conduct a
review and submit to relevant committees a report on the
state of preparedness and response capability for airports
located in flood plans to respond to and seek assistance in
rebuilding after catastrophic flooding.
Senate bill
No similar provision.
Conference Substitute
House bill modified to include a direction to the Federal
Emergency Management Agency (FEMA) to consider as an eligible
activity for purposes of the National Flood Insurance Act of
1968, ``the demolition and rebuilding of properties to at
least base flood levels or higher''.

HISTORICAL AIRCRAFT DOCUMENTS

H823/S--

House bill
Section 823 directs the Administrator to take actions, as
seen necessary, to preserve original aircraft type
certificate engineering and technical data in possession of
the FAA. No later than one year after date of enactment, the
Administrator shall revise an executive order to prohibit
destruction of historical aircraft documents. The
Administrator shall consult with Archivist of the U.S. and
Administrator of General Services on the best methods to
preserve these documents. The Administrator shall make these
documents available under Freedom of Information Act. This
provision does not affect the rights of the holder or owner
of a type certificate identified above, or require holders or
owners to provide, surrender or preserve any original or
duplicate engineering data to FAA. Notwithstanding any other
provision of the law, the holder of a type certificate
identified in this section shall not be responsible for any
continued airworthiness or FAA regulatory requirements.
Senate bill
No similar provision.
Conference Substitute
House bill modified by changing the date from one year to
three years for the revision of order. The language
specifying that holders of type certificates shall not be
responsible for any continued airworthiness is deleted. New
language is added narrowing the definition of applicability
to this section to those ``having a standard airworthiness
certificate issued prior to the date the documents are
released to a person by the FAA under subsection (b) (1) .

RELEASE FROM RESTRICTIONS

H824/S219

House bill
Section 824 authorizes the Secretary of Transportation to
grant an airport, city or county a release from any of the
terms, conditions, reservations or restrictions contained in
a deed in which the U.S. conveyed to the airport, city or
county property for airport purposes pursuant to section 16
of Federal Airport Act or section 23 of the Airport and
Airway Development Act. Any release granted by the Secretary
shall be subject to the following conditions: 1) the
applicable airport, city or country shall agree in conveying
interest in the proper which U.S. conveyed to the airport and
2) the city or county will receive an amount for such
interest equal to fair market value. Lastly, any amount
received must be used exclusively for development,
improvement, operation. or maintenance of public airport.
Senate bill
Section 219 is a similar provision, but it specifies
airports in St. George, Utah, and Dona Ana County, New
Mexico, for release in order to facilitate the development of
a replacement airport.
Conference Substitute
House bill modified.

AIR TRANSPORTATION OF LITHIUM CELLS AND BATTERIES

H814/S--

House bill
Section 814 requires the Administrator to not issue or
enforce any regulation regarding the transportation by
aircraft of lithium metal cells or batteries or lithium ion
cells or batteries, if the requirement is more stringent than
the requirements of International Civil Aviation
Organization.
Senate bill
No similar provision.
Conference Substitute
House bill modified to require that, in almost all
circumstances, regulations governing the air transportation
of lithium metal or lithium ion cells or batteries be
consistent with the provisions of the International Civil
Aviation Organization Technical Instructions for the Safe
Transportation of Dangerous Goods by Air (commonly known as
the ICAO Technical Instructions), as in effect at the time
the regulations were adopted. The only exceptions to this
directive would be (a) to allow the retention of an existing
U.S. prohibition on transportation of lithium metal batteries
and cells on passenger aircraft, even if it is not embodied
in the ICAO Technical Instructions, and (b) to allow adoption
and enforcement of a targeted rule more stringent than the
ICAO

[[Page H292]]

Technical Instructions in the event that an authoritative
national or international governmental body provides a formal
report finding that the presence of lithium metal or lithium
ion batteries on an aircraft in compliance with the ICAO
Technical Instructions was a substantial contributing factor
to the initiation or promulgation of an onboard fire.
Where the conditions set forth in this section are met, the
Secretary may issue a targeted emergency regulation that
addresses solely the deficiencies identified in the report
that triggered the regulation. That regulation may remain in
effect for up to one year and is not subject to renewal.
Either alternatively or consecutively, the Secretary may
undertake a rulemaking in accordance with the Administrative
Procedure Act to adopt a permanent regulation. That permanent
regulation must be based on substantial credible evidence
that the cells or batteries of the type at issue could be
expected to substantially contribute or propagate an on-board
fire even if they were shipped in accordance with applicable
ICAO Technical Regulations; be narrowly tailored to avoid
disruption of the shipping of other cells, batteries or
products; and employ the least expensive approach while
addressing the identified safety concern.

LIABILITY PROTECTION FOR VOLUNTEER PILOT NONPROFIT ORGANIZATIONS THAT
FLY FOR PUBLIC BENEFIT AND TO PILOTS AND STAFF OF SUCH NONPROFIT
ORGANIZATION

H816/S1211-1213

House bill
Section 816 amends the Volunteer Protection Act of 1997
(VPA) to include volunteer pilots and volunteer pilot
organizations within the scope of its protections. Under
present law, nonprofit volunteer pilot organizations and
their pilots that provide life-saving medical flights without
compensation are vulnerable to costly and often frivolous
litigation that undermines the ability of these organizations
to provide critical volunteer flight services in a timely
manner. In addition, institutions that refer patients to
volunteer pilot organizations are presently subject to legal
jeopardy. Section 816 protects and promotes the important
work of volunteer pilot organizations by creating limited
protection against liability to volunteer pilot organizations
and pilots so that they are able to procure necessary
insurance and continue their important operations.
Senate bill
Sections 1221--1213 of the Senate bill contain a similar,
but more limited, volunteer pilot provision. The Senate
provision only includes volunteer pilots within the scope of
its protections. Although the Senate provision does not
provide protections to volunteer pilot organizations, it does
protect and promote the important work of volunteer pilots.
Conference Substitute
No provision.

AIRCRAFT SITUATIONAL DISPLAY TO INDUSTRY

H817/S--

House bill
Section 817 specifies that Congress finds that the federal
government's dissemination to the public of information
relating to noncommercial flight does not serve a public
policy objective. Upon request of private owner or operator
the Federal Government should not disseminate to the public
information relating to non-commercial flights carried out by
that owner or operator as the information should be private
and confidential. The FAA shall block the display of the
owner or operator's aircraft registration number in aircraft
situation display data upon the private owner or operator
request, except when the FAA provides such data to a
government agency.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

SENSE OF CONGRESS

H825/S--

House bill
Section 825 states that it is the Sense of Congress that
Los Angeles World Airports should consult on regular basis
with representatives of the community surrounding the airport
regarding ongoing operations, plans to expand, modify or
realign the Los Angeles International Airport (LAX) facility,
and include consultations with any organization which has at
least 20 or more individuals.
Senate bill
No similar provision.
Conference Substitute
House bill modified to include consultation with any
organization which has at least 100 or more individuals.

HUMAN INTERVENTION MOTIVATION STUDY

H--/S702

House bill
No similar provision.
Senate bill
Section 702 within six months of enactment the FAA shall
develop a Human Intervention Motivation Study program for
cabin crews employed by commercial air carriers in the United
States.
Conference Substitute
Senate bill.

STUDY OF AERONAUTICAL MOBILE TELEMETRY

H--/S719

House bill
No similar provision.
Senate bill
Section 719 requires the Administrator to report to
Congress in 180 days on the aeronautical telemetry needs of
civil aviation over the next decade and the potential impact
of the introduction of a new radio service operating at the
same spectrum as aeronautical mobile telemetry service.
Conference Substitute
Senate bill.

CLARIFICATION OF REQUIREMENTS FOR VOLUNTEER PILOTS OPERATING CHARITABLE
MEDICAL FLIGHTS

H--/S729

House bill
No similar provision.
Senate bill
Section 729 clarifies that an aircraft owner or aircraft
operator can accept reimbursement for all or part of the fuel
costs associated with operating a volunteer flight for
medical purposes.
Conference Substitute
Senate bill modified by including original language, ``not
withstanding any other law or regulation'' for the
administering of section 61.113(c) of 14 C.F.R. Furthermore,
language is added to allow pilot to accept reimbursement from
volunteer pilot organization for fuel costs association with
flight operation for medical purpose, and add ``organ'' as a
transported item in subsection (a). Language is added that in
order for an owner or operator to be eligible for the
referenced reimbursement, the aircraft owner or operator must
have volunteered and notified any individual on the flight
that the flight operation is for charitable purposes and is
not subject to the same requirements as commercial flight.
Lastly, language was added that allows the Administrator to
impose minimum standards with respect to training and flight
hours for single-engine, multi-engine and turbine engine
operations that is being reimbursed for fuel costs in the
above mentioned event, including the authority to mandate
that pilot in command of aircraft hold an instrument rating
and be current and qualified for the aircraft being flown to
ensure safety of flight operations.

PILOT PROGRAM FOR A REDEVELOPMENT OF AIRPORT PROPERTIES

H--/S712

House bill
No similar provision.
Senate bill
Section 702 directs the FAA to create a pilot program
fostering the collaboration between airports who have
submitted a noise compatibility program and the surrounding
neighboring local jurisdictions to encourage airport-
compatible land uses and generate economic benefits to the
local airport authority and adjacent community. The FAA would
also have the authority to issue grants for this program.
Conference Substitute
Senate bill.

REPORT ON NEW YORK CITY AND NEWARK AIR TRAFFIC CONTROL FACILITIES

H--/S723

House bill
No similar provision.
Senate bill
Section 723 requires the Administrator within 90 days to
report to Congress on FAA's plan to staff Newark Liberty
Airport's air traffic control tower at negotiated staffing
levels within one year.
Conference Substitute
Senate bill modified to direct FAA to submit a report to
Congress on the FAA's staffing and scheduling plans for air
traffic control facilities in the New York and Newark Region
for the one year period after the date of enactment.

CYLINDERS OF COMPRESSED OXYGEN OR OTHER OXIDIZING GASES

H813/S730

House bill
Section 813 directs that the transportation within the
State of Alaska of cylinders of compressed oxygen or other
oxidizing gases aboard aircraft is exempt from compliance
from regulations that require such gases to be enclosed in
outer packaging capable of passing the flame penetration and
resistance test and the thermal resistance test, without
regard to the end use of the cylinders. The exemption is to
be applied in circumstances in which transportation of the
cylinders by ground or vessel is unavailable and
transportation by aircraft is the only practical means for
transporting the cylinders to their destination.
Senate bill
Section 730 is a similar provision, but provides an
exemption only for certain cylinders.
Conference Substitute
House bill modified to include new language that: 1)
specifies that each cylinder is fully covered with fire or
flame resistant blanket; 2) requires that the operator
complies with the applicable notification procedures under 49
C.F.R. 175.33.; and 3) specifies that the exemption applies
to cargo-only aircraft if the destination has cargo-only
service at least once a week and passenger and

[[Page H293]]

cargo-only aircraft if the destination does not receive
cargo-only service at least once a week.

ORPHAN EARMARKS ACT

H--/S738

House bill
No similar provision.
Senate bill
Section 738 requires all federal agencies to rescind
amounts designated as earmarks back to the Treasury if they
are nine years or older.
Conference Substitute
Senate bill modified.

PRIVACY PROTECTIONS FOR AIRCRAFT PASSENGER SCREENING WITH ADVANCED
IMAGING TECHNOLOGY

H--/S739

House bill
No similar provision.
Senate bill
Section 739 directs the Transportation Security
Administration (TSA) Administrator to ensure that advanced
imaging technology used for the screening of passengers is
equipped with automatic target recognition software (which
would produce a generic image of the individual being
screened) beginning on January 1, 2012.
Conference Substitute
Senate bill modified to include language allowing the TSA
Administrator to extend the deadline that requires the TSA
Administrator to ensure that Advanced Imaging Technology
machines meet requirements as specified in this section, if
the resulting technology would perform inadequately or
additional testing is necessary. In addition, the beginning
date for implementation of automatic target recognition
software is changed from January 1, 2012 to June 1, 2012.

TERMINATION OF CERTAIN RESTRICTIONS FOR BURKE LAKEFRONT AIRPORT

H820/S--

House bill
Section 820 states that any restriction in FAA Flight Data
Center Notice to Airmen, the Administrator may not prohibit
or impose airspace restrictions with respect to an air show
or other aerial event located at the Burke Lakefront Airport
in Cleveland, Ohio, due to a stadium event or event at other
venues occurring at the same time. The Administrator may
prohibit aircraft from flying directly over applicable
stadiums or venues.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

SANTA MONICA AIRPORT, CA.

H821/S--

House bill
Section 821 specifies that Congress finds that the
Administrator should enter into good faith discussions with
city of Santa Monica, California, to achieve a runway safety
area solution consistent with FAA design guidelines.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

INSPECTOR GENERAL REPORT ON PARTICIPATION IN FAA PROGRAMS BY
DISADVANTAGED SMALL BUSINESS CONCERNS

H822/S--

House bill
Section 822 directs the DOT IG to submit a report to
Congress on the number of new small business concerns owned
and controlled by socially and economically disadvantaged
individuals, such as veterans, that participate in airport
programs. The report shall list the top 25 and bottom 25
large and medium hub airports in terms of providing
opportunities for such small businesses and provide results
of the assessments and recommendations to the FAA and
Congress on methods for other airports to achieve results
similar to those of the top airports.
Senate bill
No similar provision.
Conference Substitute
House bill.

ISSUING REGULATIONS

H826/S--

House bill
Section 826 requires that when proposing or issuing
regulation the Administrator shall analyze the different
industry segments and tailor any regulation to
characteristics of each separate segment, taking into account
that U.S. aviation industry is composed of different
segments. The Administrator shall analyze for each industry
segment: alternative forms of regulation, assess the costs
and benefits, ensure proposed regulation is based on best
reasonably obtainable scientific, technical and other
information, and assess any adverse effects on efficient
function of the economy, private markets together with
quantification of such costs.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

WEIGHT RESTRICTIONS AT TETERBORO AIRPORT

H--/S711

House bill
No similar provision.
Senate bill
Section 711 prohibits the Administrator from taking action
designed to challenge or influence the weight restrictions at
Teterboro Airport, except in an emergency.
Conference Substitute
House bill.

FLIGHT CREW MEMBER PAIRING AND CREW RESOURCE MANAGEMENT TECHNIQUES

H--/S720

House bill
No similar provision.
Senate bill
Section 720 requires the Administrator to conduct a study
and issue a report on aviation industry best practices with
regard to flight crew member pairing, crew resource
management techniques, and pilot commuting.
Conference Substitute
House bill because the Senate provision is included in P.L.
111-216, the Airline Safety and Federal Aviation
Administration Extension Act of 2010.

ONGOING MONITORING OF AIRSPACE REDESIGN

H--/S726

House bill
No similar provision.
Senate bill
Section 726 directs the Administrator to work with the New
York and New Jersey Port Authority to monitor the noise
impacts of the redesign and submit reports to Congress on
those impacts within 270 days, and every 180 days thereafter
until the New York, New Jersey and Philadelphia airspace
redesign is completed.
Conference Substitute
House bill.

LAND CONVEYANCE FOR SOUTHERN NEVADA

H--/S728

House bill
No similar provision.
Senate bill
Section 728 adds language to Title VII to allow certain
lands in Clark County, Nevada, to be used for the development
of a flood mitigation infrastructure project once the
Administrator has: (1) approved an airport layout plan for an
airport in Ivanpah Valley, Nevada; and (2) issued a record of
decision after the preparation of an environmental impact
statement or similar analysis document on the construction
and operation for the airport in Ivanpah Valley, Nevada.
Conference Substitute
House bill.

TECHNICAL CORRECTION

H--/S731

House bill
No similar provision.
Senate bill
Section 731 amends the Consolidated Appropriations Act of
2010, to require inspections of rail containers containing
firearms or ammunition and permits the temporary suspension
of firearm carriage if credible intelligence information
indicates that a threat related to the national rail system,
specific routes, or trains is identified.
Conference Substitute
House bill.

SCIENTIFIC INSTRUMENTS ON COMMERCIAL FLIGHTS

H--/S732

House bill
No similar provision.
Senate bill
Section 732 requires the Secretary of Transportation and
the Secretary of Commerce to develop a plan to allow federal
agencies to fly weather forecasting instruments on commercial
flights within 270 days of enactment.
Conference Substitute
House bill.

CONTROLLING HELICOPTER NOISE IN RESIDENTIAL AREAS

H--/S740

House bill
No similar provision.
Senate bill
Section 740 directs the FAA to prescribe standards to
measure helicopter noise and regulations to control
helicopter noise in residential areas. This section would
mandate that within one year, the FAA finalize regulations
with respect to helicopters operating over Long Island.
Conference Substitute
House bill.

CRIMINAL PENALTY FOR UNAUTHORIZED RECORDING OR DISTRIBUTION OF SECURITY
SCREENING IMAGES

H--/S734

House bill
No similar provision.
Senate bill
Section 734 establishes criminal penalties for unauthorized
recording or distribution of security screening images.
Includes images from backscatter x-rays or millimeter waves
and devices. It provides an exception for certain law
enforcement or intelligence purposes.

[[Page H294]]

Conference Substitute
House bill.

APPROVAL OF APPLICATIONS FOR THE SECURITY SCREENING OPT-OUT PROGRAM

H--/S735

House bill
No similar provision.
Senate bill
Section 735 requires the Transportation Security
Administration (TSA) Administrator to consider approving
applications to participate in the Screening Partnership
Program (SPP), which uses private screeners instead of TSA
employees, for all airports with pending applications. This
section requires the TSA Administrator to reconsider rejected
applications for the SPP for a limited number of airports. If
the TSA Administrator decides again to deny an application,
they must report to Congress on the reason for the denial.
Conference Substitute
Senate bill modified to require the TSA Administrator to
approve or deny, within 120 days, an application received by
an airport to participate in the SPP. The Administrator is
required to approve the application unless a determination is
made that such approval would compromise security or have a
detrimental effect on the on the cost-efficiency or
effectiveness of security screening at that airport. The
Administrator must provide a more in-depth explanation in a
report to Congress if an SPP application is denied. This
explanation must include: (1) the findings that served as a
basis for the denial; (2) results of any cost or security
analysis conducted in the reconsideration; and (3)
recommendations on how the airport operator can address the
reasons for the denial. This report has to be issued with 60
days of the denial. Airport Operators who apply for the SPP
must also provide TSA a recommendation as to which company
would best serve the airport along with an explanation for
that choice. The modified provision also requires the
reconsideration of SPP applications pending between January
1, 2011, and February 3, 2011, and outlines specific
timelines to be followed in issuing decisions regarding SPP
reapplications. The provision includes modifications to
existing requirements which provide the Administrator with
more flexibility in determining what companies can bid for
SPP contracts.
The conference committee believes that in determining the
cost efficiency and effectiveness of an applicant's screening
services, the TSA Administrator shall compare the annual
costs to the Federal government and related effectiveness
measures associated with screening services at commercial
airports using private-sector screeners with comparable costs
associated with screening services by Federal screeners,
applying the relevant cost and performance metrics equally to
the private and Federal screening programs.

CONVEYANCE OF LAND TO CITY OF MESQUITE, NEVADA

H--/S736

House bill
No similar provision.
Senate bill
Section 736 directs the Secretary of the Interior to convey
to the City of Mesquite, NV, without consideration, all
right, title and interests of the U.S. in a land parcel at
Mesquite Airport.
Conference Substitute
House bill.

TITLE IX--NATIONAL MEDIATION BOARD

AUTHORITY OF THE DOT INSPECTOR GENERAL

H901/S--

House bill
Section 901 gives the DOT IG specific authority to conduct
audits and evaluate the National Mediation Board's (NMB)
financial management, property management, and business
operations. In carrying out this authority, the Inspector
General of the Department of Transportation (DOT IG) is to
keep the Chairman of the Mediation Board and Congress fully
and currently informed, issue findings and recommendations
and report periodically to Congress. The Secretary of
Transportation may only appropriate for use by the DOT IG no
more than $125,000 for each of FYs 2011 through 2014.
Senate bill
No similar provision.
Conference Action
No provision.

EVALUATION AND AUDIT OF THE NATIONAL MEDIATION BOARD

H902/S--

House bill
Section 902 directs the GAO to conduct audits and evaluate
the NMB's programs, operations and activities, including: 1)
information management and security; 2) resource management;
3) workforce development; 4) procurement and contracting
policies; and 5) NMB processes for conducting investigations
of representation applications, determining and certifying
representation of employees, and ensuring that the process
occurs without interference.
Senate bill
No similar provision.
Conference Action
House provision modified. The conference committee agreed
to the following modifications. The conference committee
agreed to amend the Railway Labor Act by requiring an
evaluation and audit of the Mediation Board by the
Comptroller General. The Comptroller General of the U.S.
shall evaluate and audit the programs and expenditures of the
Mediation Board at least every two years, however it may be
conducted as determined necessary by the Comptroller or
appropriate congressional committees. In conducting the
evaluation and audit of the Mediation Board, the Conference
Committee sets forth the minimum programs, operations and
activities of the Board that shall be included. No later than
180 days after the date of enactment, the Comptroller General
shall review the Mediation Board's processes to certify and
decertify representation of employees by a labor organization
and make recommendations to the Board and appropriate
congressional committees regarding actions that may be taken
by the Board to ensure the processes are fair and reasonable
for all parties.

REPEAL OF RULE

H903/S--

House bill
Section 903 repeals the rule prescribed by the NMB on May
11, 2010, effective January 1, 2011. In May 2010, the NMB
changed standing rules for union elections at airlines and
railroads, which counted abstentions as votes ``against''
unionizing, to the current rule which counts only no votes as
``against'' unionizing, abstentions do not count either way.
Senate bill
No similar provision.
Conference Action
This provision was not agreed to by the Conference, and is
not included in the final bill. The conference committee
agreed to the following provisions.
Rule Making
The conference committee agreed to amend title I of the
Railway Labor Act by inserting after section 10 that the
Mediation Board has authority from time to time to make,
amend, and rescind, in the manner prescribed by section 553
of title 5, United States Code and after opportunity for a
public hearing, such rules and regulations as may be
necessary to carry out the provisions of this Act.
Runoff Elections
The conference committee agreed to amend Paragraph Nine of
section 2 of the Railway Labor Act to require that in any
runoff election for which there are 3 or more options
(including the option of not being represented by any labor
organization) on the ballot and no such option receives a
majority of the valid votes cast, the Mediation Board shall
arrange for a second election between the options receiving
the largest and the second largest number of votes.
Showing of Interest
The conference committee agreed to amend section 2 of the
Railway Labor Act by raising the showing of interest
threshold for elections to not less than fifty percent of the
employees in the craft or class.

TITLE X--SCIENCE COMMITTEE, RESEARCH, ENGINEERING AND DEVELOPMENT
(R,E&D)

SHORT TITLE

H1001/S--

House bill
Section 1001 titles the section the ``Federal Aviation
Research and Development Reauthorization Act of 2011''.
Senate bill
No similar provision.
Conference Substitute
Senate bill.

AUTHORIZATION OF APPROPRIATIONS

($ IN MILLIONS)

H1003(a)/S103

House bill
Section 1003(a) authorizes the Federal Aviation
Administration's Research, Engineering and Development
(R,E&D) account at $165.2 million in FY 2011, and $146.83
million in FY 2012, FY 2013, and FY 2014.
Senate bill
Section 103 authorizes the Federal Aviation
Administration's Research, Engineering and Development
account at $200 million in FY 2010 and $206 million in FY
2011.
Conference Substitute
House and Senate bills merged to provide $168 million for
Federal Aviation Administration's Research, Engineering and
Development account in FYs 2012 through FY 2015.

DEFINITIONS

H1002/S--

House bill
Section 1001 defines the terms Administrator'', ``FAA'',
``Institution of Higher Education'', ``NASA'', National
Research Council'', ``NOAA'', and ``Secretary''.
Senate bill
No similar provision.
Conference Substitute
House bill.

PROGRAMS AUTHORIZED

H1003(b), (c)/S103

House bill
Section 1003(b), (c) authorizes Research and Development
activities listed in the National Aviation Research Plan.

[[Page H295]]

Senate bill
Section 103 requires the FAA to establish a grant program
to promote aviation research at undergraduate and technical
colleges including schools serving Historically Black
Colleges and Universities, Hispanic, Native Alaskan &
Hawaiian populations.
Conference Substitute
House bill.

UNMANNED AIRCRAFT SYSTEMS

H1004/S607(a)

House bill
Section 1004 requires the Administrator in conjunction with
other appropriate federal agencies to develop technologies
and methods to assess the risk and prevent defects, failures,
and malfunctions of products, parts and processes for use in
all classes of Unmanned Aircraft Systems (UAS) that could
result in catastrophic failure of UAS or endanger other
aircraft in the NAS. The Administrator is required to
supervise research which will develop better understanding of
the relationship between human factors and UAS safety and
develop simulation models for integration of all UASs into
the NAS without degrading safety for current users.
Senate bill
Section 607(a) permits the FAA to conduct developmental
research on UASs. It authorizes the FAA, 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 aircraft
systems that could result in a catastrophic failure.
Conference Substitute
House bill.

RESEARCH PROGRAM ON RUNWAYS

H1005/S605

House bill
Section 1005 directs that when researching how to develop
and maintain a safe and efficient NAS, the Administrator will
include improved runway surfaces and engineered material
restraining systems for runways at general aviation and
commercial airports.
Senate bill
Section 605 allows the FAA to continue a program that
authorizes awards to nonprofit research foundations to
improve the construction and durability of pavement for
runways.
Conference Substitute
House and Senate bills merged. The provision contains
modified Senate language in subsection (a) that will allow
the Administrator to maintain a program that will make awards
to carry out a research program under which the Administrator
may make grants to and enter into cooperative agreements
with institutions of higher education and nonprofit
pavement research organization. The conference agreement
includes House language to cover research that relates to
engineered material restraining systems for runways at
both general aviation and commercial airports. The
conference agreement also includes Senate language on use
of grants or cooperative agreements.

RESEARCH ON DESIGN FOR CERTIFICATION

H1006/S--

House bill
Section 1006 requires the Administrator to conduct research
on methods and procedures to improve confidence in and the
timeliness of certification of new technologies for
introduction into the NAS within one year. It specifies that
not later than six months after enactment, the FAA will
develop a plan for the research that contains objectives,
proposed tasks, milestones and a five year budget profile.
The Administrator will enter into an arrangement with the
National Research Council to conduct an independent review of
the plan not later than 18 months after the date of
enactment, with results of the review provided to Congress.
Senate bill
No similar provision.
Conference Substitute
House bill.

AIRPORT COOPERATIVE RESEARCH PROGRAM

H1007/S601

House bill
Section 1007 makes the Airport Cooperative Research Program
permanent and requires a report on the program no later than
September 30, 2012.
Senate bill
Section 601 is a similar provision, but it specifies that a
maximum of $15 million of aviation research grant funds may
go to the Airport Cooperative Research Program. It directs
that at least $5 million of the Airport Cooperative Research
Program funds must go to environmental research.
Conference Substitute
House bill.

CENTERS OF EXCELLENCE

H1008/S608

House bill
Section 1008 changes the current Government share of costs
for the Centers of Excellence so that the government's share
of cost will not exceed 50 percent, with the exception that
the Administrator may increase the share to a maximum of 75
percent for a fiscal year if the Administrator determines a
center would be unable to carry out authorized activities
without additional funds. An annual report is required
listing the research projects initiated at each Center of
Excellence, the amount of funding and funding source for each
project, institutions participating, their shares of funding,
and level of cost-sharing for the project.
Senate bill
Section 608 authorizes $1 million per year for each of
fiscal years 2008 through 2012 for a Center of Excellence in
applied research and training in the use of advanced
materials in transport category aircraft.
Conference Substitute
House bill.

CENTER OF EXCELLENCE FOR AVIATION HUMAN RESOURCE RESEARCH

H1009/S--

House bill
Section 1009 permits the Administrator to establish a
Center of Excellence to conduct research on human performance
in the air transportation environment, and any other aviation
human resource issues pertinent to developing and maintaining
a safe and efficient air transportation system. Activities
conducted under this section may include research and
development and evaluation of training programs, best
practices for recruitment, development of a baseline of
general aviation employment statistics, research and
development of the airframe and power plant technician
certification process, evaluation of aviation maintenance
technician school environment, and transitioning mechanics
into the aviation field.
Senate bill
No similar provision.
Conference Substitute
House bill.

INTERAGENCY RESEARCH ON AVIATION AND THE ENVIRONMENT

H1010/S--

House bill
Section 1010 directs that the Administrator, in
coordination with National Air and Space Administration
(NASA), may maintain a research program to assess the
potential effect of aviation on the environment. The research
plan will be developed by the Administrator with NASA and
other relevant agencies, and will contain an inventory of
current interagency research, future research objectives,
proposed tasks, milestones and a five year budgetary profile.
The plan shall be completed within one year, and shall be
updated as appropriate every three years after initial
submission.
Senate bill
No similar provision.
Conference Substitute
House bill.

AVIATION FUEL RESEARCH AND DEVELOPMENT PROGRAM

H1011/S--

House bill
Section 1011 specifies that, using Research, Engineering
and Development (R,E&D) funds, the Administrator, in
coordination with NASA Administrator, will continue R,E&D
activities into the qualification of unleaded aviation fuel
and safe transition to this fuel for the fleet of piston
engine aircraft. It directs that the Administrator, not later
than 270 days after enactment, will provide Congress with a
report on a plan, policies, and guidelines on how this will
be accomplished.
Senate bill
No similar provision.
Conference Substitute
House bill.

RESEARCH PROGRAM ON ALTERNATIVE JET FUEL TECHNOLOGY FOR CIVIL AIRCRAFT

H1012/S603

House bill
Section 1012 directs the Secretary of Transportation to
conduct a research program related to developing and
qualifying jet fuel from alternative sources through grants
and other measures. The program will allow for participation
of industry and educational and research institutions that
have existing facilities and experience in the research and
development of technology for alternative jet fuels. The
Secretary may collaborate with existing interagency programs,
including the Commercial Aviation Alternative Fuels
Initiative (CAAFI).
Senate bill
Section 603 requires the DOT to establish a research
program to develop jet fuel from natural gas, biomass, and
other renewable sources. It directs that the FAA, within 180
days, designate a Center of Excellence for Alternative Jet-
Fuel Research for Civil Aircraft.
Conference Substitute
Senate bill modified to add language permitting facilities
to participate in the program that ``leverage private sector
partnerships and consortia with experience across the supply
chain'' and changing ``shall'' to ``may'' in directing the
Administrator to designate an institution to carry out this
section.

REVIEW OF FAA'S ENERGY- AND ENVIRONMENT-RELATED RESEARCH PROGRAMS

H1013/S--

House bill
Section 1013 directs the Administrator to review FAA
energy-related and environment-

[[Page H296]]

related research programs. It initiates a report to be
submitted on the agency's review to Congress no later than 18
months after enactment.
Senate bill
No similar provision.
Conference Substitute
House bill modified to direct the FAA to ``enter into an
arrangement for an independent external review'' to conduct
the review, rather than the Administrator.

REVIEW OF FAA'S AVIATION SAFETY-RELATED RESEARCH PROGRAMS

H1014/S--

House bill
Section 1014 directs the Administrator to review FAA's
aviation safety-related research programs. It initiates a
report to be submitted on the agency's review to Congress no
later than 14 months after enactment.
Senate bill
No similar provision.
Conference Substitute
House bill modified to direct the FAA to ``enter into an
arrangement for an independent external review'' to conduct
the review, rather than the Administrator.

RESEARCH GRANTS FOR UNDERGRADUATES

H--/S103

House bill
No similar provision.
Senate bill
Section 103 authorizes $5 million for research grants
program for undergraduate colleges, including those that are
Historically Black Colleges and Universities, Hispanic
Serving Institutions, tribally controlled institutions and
Alaska Native and Native Hawaiian institutions.
Conference Substitute

House bill.

PRODUCTION OF CLEAN COAL FUEL TECHNOLOGY FOR CIVILIAN AIRCRAFT

H--/S604

House bill
No similar provision.
Senate bill
Section 604 requires the Secretary of Transportation to
establish a Center of Excellence for a research program
related to developing jet fuel from clean coal through grants
or other measures, with a requirement to include educational
and research institutions in the initiative.
Conference Substitute
Senate bill modified by changing ``shall'' to ``may'' in
directing the Administrator to establish a Center of
Excellence to carry out this section.

WAKE TURBULENCE, VOLCANIC ASH, AND WEATHER RESEARCH

H--/S606

House bill
No similar provision.
Senate bill
Section 606 directs the Administrator to initiate an
evaluation of proposals that would: increase capacity
throughout the NAS by reducing spacing requirements between
aircraft through research of wake turbulence; begin
implementation of a system to avoid volcanic ash; and
establish weather research projects, including on ground de-
icing.
Conference Substitute
Senate bill modified to include research on the nature of
wake vortexes and to direct the Administrator to coordinate
with National Oceanic and Atmospheric Administration (NOAA),
National Air and Space Administration (NASA), and other
appropriate federal agencies to conduct research.

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

H--/S608

House bill
No similar provision.
Senate bill
Section 608 authorizes $1 million per year for FYs 2008
through 2012 for a Center of Excellence in applied research
and training in the use of advanced materials in transport
category aircraft.
Conference Substitute
Senate bill with modification removing authorization
amounts.

RESEARCH AND DEVELOPMENT OF EQUIPMENT TO CLEAN AND MONITOR THE ENGINE
AND APU BLEED AIR SUPPLIED ON PRESSURIZED AIRCRAFT

H--/S612

House bill
No similar provision.
Senate bill
Section 612 requires the FAA to conduct a research program
for the identification or development of effective air
cleaning technology and sensors technology for the engine and
auxiliary power unit bleed air supplied to passenger cabins
and flight decks of all pressurized aircraft. It would
require the FAA submit a report to Congress within one year.
Conference Substitute
Senate bill.

EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR NEXTGEN

H212/S314

House bill
Section 212 directs the Administrator to enter into an
arrangement with the National Research Council to review the
enterprise architecture for NextGen. Also, the Administrator
must report to Congress within one year on the results of
this review.
Senate bill
Section 314 directs the Administrator to publish a report
within six months, after consultation with stakeholders,
including the development of: 1) RNP/RNAV procedures at 137
airports; 2) a description of the activities required for
their implementation; 3) an implementation plan that includes
baseline and performance metrics; 4) assessment of the
benefits/costs of using third parties to develop the
procedures; and 5) a process for the creation of future RNP
and RNAV procedures. The Administrator must implement 30
percent of the procedures within 18 months of enactment, 60
percent within 36 months of enactment, and 100 percent by
2014. The Administrator is directed to create a plan for the
implementation of procedures at the remaining airports across
the country. It would require 25 percent of the procedures at
these airports to be implemented within 18 months after
enactment, 50 percent within 30 months after enactment; 75
percent within 42 months after enactment, and 100 percent
before 2016. The charter of the Performance Based Navigation
ARC is extended and directs it to establish priorities for
development of RNP/RNAV procedures based on potential safety
and congestion benefits. It would require that the process of
the development of such procedures be subject to a previously
established environmental review process. The FAA is directed
to provide Congress with a deployment plan for the
implementation of a nationwide data communications system to
support NextGen ATC, and a report evaluating the ability of
NextGen technologies to facilitate improved performance
standards for aircraft in the NAS.
Conference Substitute
House bill modified to direct the FAA to ``enter into an
arrangement for an independent external review'' to conduct
the review, rather than the Administrator.

AIRPORT SUSTAINABILITY PLANNING WORKING GROUP

H--/S221

House bill
No similar provision.
Senate bill
Section 221 establishes an airport sustainability working
group within the FAA that would submit a report on their
findings to the Administrator within one year of enactment.
The working group would be comprised of 15 members including
the Administrator and industry representatives.
Conference Substitute
Senate bill with minor modifications.

TITLE XI--AIRPORT AND AIRWAY TRUST FUND PROVISIONS AND RELATED TAXES

A. Extension of Taxes Funding the Airport and Airway Trust Fund (sec.
1103 of the House bill, sec. 801 of the Senate amendment, sec. 1101 of
the conference agreement, and secs. 4261, 4271, and 4081 of the Code)

Present Law

Overview
Excise taxes are imposed on amounts paid for commercial air
passenger and freight transportation and on fuels used in
commercial aviation and noncommercial aviation (i.e.,
transportation that is not ``for hire'') to fund the Airport
and Airway Trust Fund. The present aviation excise taxes are
as follows:
---------------------------------------------------------------------------
\1\ The domestic flight segment portion of the tax is
adjusted annually (effective each January1) for
inflation (adjustments based on the changes in the consumer
price index (the ``CPI'')).
\2\ The international travel facilities tax rate is adjusted
annually for inflation (measured by changes in the CPI).
\3\ Like most other taxable motor fuels, aviation fuels are
subject to an additional 0.1-cent-per-gallon excise tax to
fund the Leaking Underground Storage Tank Trust Fund.

------------------------------------------------------------------------
Tax (and Code section) Tax Rates
------------------------------------------------------------------------
Domestic air passengers (sec. 4261)....... 7.5 percent of fare, plus
$3.80 (2012) per domestic
flight segment generally
\1\
International travel facilities tax (sec. $16.70 (2012) per arrival or
4261). departure \2\
Amounts paid for right to award free or 7.5 percent of amount paid
reduced rate passenger air transportation
(sec. 4261).
Air cargo (freight) transportation (sec. 6.25 percent of amount
4271). charged for domestic
transportation; no tax on
international cargo
transportation
Aviation fuels (sec. 4081): \3\ ............................
1. Commercial aviation.................... 4.3 cents per gallon
2. Non-commercial (general) aviation:
Aviation gasoline..................... 19.3 cents per gallon
Jet fuel.............................. 21.8 cents per gallon
------------------------------------------------------------------------

All Airport and Airway Trust Fund excise taxes, except for
4.3 cents per gallon of the taxes on aviation fuels, are
scheduled to expire after February 17, 2012. The 4.3-cents-
per-gallon fuels tax rate is permanent.
Taxes on transportation of persons by air
Domestic air passenger excise tax
Domestic air passenger transportation generally is subject
to a two-part excise tax.

[[Page H297]]

The first component is an ad valorem tax imposed at the rate
of 7.5 percent of the amount paid for the transportation. The
second component is a flight segment tax. For 2012, the
flight segment tax rate is $3.80.\4\ A flight segment is
defined as transportation involving a single take-off and a
single landing. For example, travel from New York to San
Francisco, with an intermediate stop in Chicago, consists of
two flight segments (without regard to whether the passenger
changes aircraft in Chicago).
---------------------------------------------------------------------------
\4\ Sec. 4261(b)(1) and 4261(d)(4). Unless otherwise stated,
all section references are to the Internal Revenue Code of
1986, as amended (the ``Code''). The Code provides for a $3
tax indexed annually for inflation, effective each January 1,
resulting in the current rate of $3.80.
---------------------------------------------------------------------------
The flight segment component of the tax does not apply to
segments to or from qualified ``rural airports.'' For any
calendar year, a rural airport is defined as an airport that
in the second preceding calendar year had fewer than 100,000
commercial passenger departures, and meets one of the
following three additional requirements: (1) the airport is
not located within 75 miles of another airport that had more
than 100,000 such departures in that year; (2) the airport is
receiving payments under the Federal ``essential air
service'' program; or (3) the airport is not connected by
paved roads to another airport.\5\
---------------------------------------------------------------------------
\5\ In the case of an airport qualifying as ``rural'' because
it is not connected by paved roads to another airport, only
departures for flight segments of 100 miles or more are
considered in calculating whether the airport has fewer than
100,000 commercial passenger departures. The Department of
Transportation has published a list of airports that meet the
definition of rural airports. See Rev. Proc. 2005-45.
---------------------------------------------------------------------------
The domestic air passenger excise tax applies to ``taxable
transportation.'' Taxable transportation means transportation
by air that begins in the United States or in the portion
of Canada or Mexico that is not more than 225 miles from
the nearest point in the continental United States and
ends in the United States or in such 225-mile zone. If the
domestic transportation is paid for outside of the United
States, it is taxable only if it begins and ends in the
United States.
For purposes of the domestic air passenger excise tax,
taxable transportation does not include ``uninterrupted
international air transportation.'' Uninterrupted
international air transportation is any transportation that
does not both begin and end in the United States or within
the 225-mile zone and does not have a layover time of more
than 12 hours. The tax on international air passenger
transportation is discussed below.
International travel facilities tax
For 2012, international air passenger transportation is
subject to a tax of $16.70 per arrival or departure in lieu
of the taxes imposed on domestic air passenger transportation
if the transportation begins or ends in the United States.\6\
The definition of international transportation includes
certain purely domestic transportation that is associated
with an international journey. Under these rules, a passenger
traveling on separate domestic segments integral to
international travel is exempt from the domestic passenger
taxes on those segments if the stopover time at any point
within the United States does not exceed 12 hours.
---------------------------------------------------------------------------
\6\ Secs. 4261(c) and 4261(d)(4). The international air
facilities tax rate of $12 is indexed annually for inflation,
effective each January 1, resulting in the current rate of
$16.70.
---------------------------------------------------------------------------
In the case of a domestic segment beginning or ending in
Alaska or Hawaii, the tax applies to departures only and is
$8.40 for calendar year 2012.
``Free'' travel
Both the domestic air passenger tax and the use of
international air facilities tax apply only to transportation
for which an amount is paid. Thus, free travel, such as that
awarded in ``frequent flyer'' programs and nonrevenue travel
by airline industry employees, is not subject to tax.
However, amounts paid to air carriers (in cash or in kind)
for the right to award free or reduced-fare transportation
are treated as amounts paid for taxable air transportation
and are subject to the 7.5 percent ad valorem tax (but not
the flight segment tax or the use of international air
facilities tax). Examples of such payments are purchases of
miles by credit card companies and affiliates (including
airline affiliates) for use as ``rewards'' to cardholders.
Disclosure of air passenger transportation taxes on tickets
and in advertising
Transportation providers are subject to special penalties
relating to the disclosure of the amount of the passenger
taxes on tickets and in advertising. The ticket is required
to show the total amount paid for such transportation and the
tax. The same requirements apply to advertisements. In
addition, if the advertising separately states the amount to
be paid for the transportation or the amount of taxes, the
total shall be stated at least as prominently as the more
prominently stated of the tax or the amount paid for
transportation. Failure to satisfy these disclosure
requirements is a misdemeanor, upon conviction of which the
guilty party is fined not more than $100 per violation.\7\
---------------------------------------------------------------------------
\7\ Sec. 7275.
---------------------------------------------------------------------------
Tax on transportation of property (cargo) by air
Amounts equivalent to the taxes received from the
transportation of property by air are transferred to the
Airport and Airway Trust Fund. Domestic air cargo
transportation is subject to a 6.25 percent ad valorem excise
tax on the amount paid for the transportation.\8\ The tax
applies only to transportation that both begins and ends in
the United States. There is no disclosure requirement for the
air cargo tax.
---------------------------------------------------------------------------
\8\ Sec. 4271.
---------------------------------------------------------------------------
Aviation fuel taxes
The Code imposes excise taxes on gasoline used in
commercial aviation (4.3 cents per gallon) and noncommercial
aviation (19.3 cents per gallon), and on jet fuel (kerosene)
and other aviation fuels used in commercial aviation (4.3
cents per gallon) and noncommercial aviation (21.8 cents per
gallon).\9\ Amounts equivalent to these taxes are transferred
to the Airport and Airway Trust Fund.
---------------------------------------------------------------------------
\9\ These fuels are also subject to an additional 0.1 cent
per gallon for the Leaking Underground Storage Tank Trust
Fund. If there was not a taxable sale of the fuel pursuant to
section 4081 of the Code, a backup tax exists under section
4041(c) for such fuel that is subsequently sold or used in
aviation.
---------------------------------------------------------------------------

House Bill

The provision extends the present-law Airport and Airway
Trust Fund excise taxes through September30, 2014.
Effective date.--The provision takes effect on the date of
enactment.

Senate Amendment

The provision extends the present-law Airport and Airway
Trust Fund excise taxes through September 30, 2013.
Effective date.--The provision takes effect on April 1,
2011.

Conference Agreement

The conference agreement extends the present-law Airport
and Airway Trust Fund excise taxes through September 30,
2015.
Effective date.--The provision takes effect on February 18,
2012.

B. Extension of Airport and Airway Trust Fund Expenditure Authority
(sec. 1102 of the House bill, sec. 802 of the Senate amendment, sec.
1102 of the conference agreement, and sec. 9502 of the Code)

Present Law

In general
The Airport and Airway Trust Fund was created in 1970 to
finance a major portion of Federal expenditures on national
aviation programs. Operation of the Airport and Airway Trust
Fund is governed by the Internal Revenue Code (the ``Code'')
\10\ and authorizing statutes. The Code provisions govern
deposit of revenues into the trust fund and approve the use
of trust fund money (as provided by appropriation acts) for
expenditure purposes in authorizing statutes as in effect on
the date of enactment of the latest authorizing Act. The
authorizing acts provide specific trust fund expenditure
programs and purposes.
---------------------------------------------------------------------------
\10\ Unless otherwise stated, all section references are to
the Internal Revenue Code of 1986, as amended.
---------------------------------------------------------------------------
Authorized expenditures from the Airport and Airway Trust
Fund include the following principal programs:
1. Airport Improvement Program (airport planning,
construction, noise compatibility programs, and safety
projects);
2. Facilities and Equipment program (costs of acquiring,
establishing, and improving the air traffic control
facilities);
3. Research, Engineering, and Development program (Federal
Aviation Administration (``FAA'') research and development
activities);
4. FAA Operations and Maintenance (``O&M'') programs; and
5. Certain other aviation-related programs specified in
authorizing acts.
Part of the O&M programs is financed from General Fund
monies as well.\11\
---------------------------------------------------------------------------
\11\ According to the Government Accountability Office, for
FY 2000 through FY 2010 the contribution of general revenues
has increased to cover a larger share of the FAA's operation
expenditures. United States Government Accountability Office,
Airport and Airway Trust Fund: Declining Balance Raises
Concerns Over Ability to Meet Future Demands, Statement of
Gerald Dillingham, Director Physical Infrastructure Before
the Committee on Finance, U.S. Senate (GAO-11-358T), February
3, 2011, p. 5, Fig. 2. Congressional Budget Office, Financing
Federal Aviation Programs: Statement of Robert A. Sunshine
before the House Committee on Ways and Means, May 7, 2009, p.
3.
---------------------------------------------------------------------------
Limits on Airport and Airway Trust Fund expenditures
No expenditures are currently permitted to be made from the
Airport and Airway Trust Fund after February 17, 2012.
Because the purposes for which Airport and Airway Trust Fund
monies are permitted to be expended are fixed as of the date
of enactment of the Airport and Airway Extension Act of 2012,
the Code must be amended to authorize new Airport and Airway
Trust Fund expenditure purposes. In addition, the Code
contains a specific enforcement provision to prevent
expenditure of Airport and Airway Trust Fund monies for
purposes not authorized under section 9502. Should such
unapproved expenditures occur, no further aviation excise tax
receipts will be transferred to the Airport and Airway Trust
Fund. Rather, the aviation taxes would continue to be
imposed, but the receipts would be retained in the General
Fund.

House Bill

The provision authorizes expenditures from the Airport and
Airway Trust Fund through September 30, 2014, and revises the
purposes for which money from the Airport and Airway Trust
Fund funds are permitted to be expended to include those
obligations authorized under the reauthorization legislation
of 2011 (i.e., the ``FAA Reauthorization

[[Page H298]]

and Reform Act of 2011,'' which sets forth aviation program
expenditure purposes through September 30, 2014).
Effective date.--The provision takes effect on date of
enactment.

Senate Amendment

The provision authorizes expenditures from the Airport and
Airway Trust Fund through September 30, 2013. The provision
also amends the list of authorizing statutes to include the
``FAA Air Transportation Modernization and Safety Improvement
Act,'' which sets forth aviation program expenditure purposes
through September 30, 2013.
Effective date.--The provision takes effect on April 1,
2011.

Conference Agreement

The conference agreement authorizes expenditures from the
Airport and Airway Trust Fund through September 30, 2015. The
provision also amends the list of authorizing statutes to
include the ``FAA Modernization and Reform Act of 2012,''
which sets forth aviation program expenditure purposes
through September 30, 2015.
Effective date.--The provision takes effect on February 18,
2012.

C. Modification of Excise Tax on Kerosene Used in Aviation (sec. 803 of
the Senate amendment)

Present Law

In general
Under section 4081, an excise tax is imposed upon (1) the
removal of any taxable fuel from a refinery or terminal,\12\
(2) the entry of any taxable fuel into the United States, or
(3) the sale of any taxable fuel to any person who is not
registered with the Internal Revenue Service (``IRS'') to
receive untaxed fuel, unless there was a prior taxable
removal or entry.\13\ The tax does not apply to any removal
or entry of taxable fuel transferred in bulk by pipeline or
vessel to a terminal or refinery if the person removing or
entering the taxable fuel, the operator of such pipeline or
vessel (excluding deep draft vessels), and the operator of
such terminal or refinery are registered with the
Secretary.\14\ If the bulk transfer exception applies, tax is
not imposed until the fuel ``breaks bulk,'' i.e., when it is
removed from the terminal, typically by rail car or truck,
for delivery to a smaller wholesale facility or retail
outlet, or removed directly from the terminal into the fuel
tank of an aircraft.\15\
---------------------------------------------------------------------------
\12\ A ``terminal'' is a taxable fuel storage and
distribution facility that is supplied by pipeline or vessel
and from which taxable fuel may be removed at a rack. A
``rack'' is a mechanism capable of delivering taxable fuel
into a means of transport other than a pipeline or vessel. A
terminal can be located at an airport, or fuel may be
delivered to the airport from a terminal located off the
airport grounds.
\13\ Sec. 4081(a)(1).
\14\ Sec. 4081(a)(1)(B).
\15\ In general, the party liable for payment of the taxes
when the fuel breaks bulk at the terminal is the ``position
holder,'' the person shown on the records of the terminal
facility as holding the inventory position in the fuel.
However, when fuel is removed directly into the fuel tank of
an aircraft for use in commercial aviation, the person who
uses the fuel is liable for the tax. The fuel is treated as
used when such fuel is removed into the fuel tank. Sec.
4081(a)(4).
---------------------------------------------------------------------------
The term ``taxable fuel'' means gasoline, diesel fuel
(including any liquid, other than gasoline, that is suitable
for use as a fuel in a diesel-powered highway vehicle or
train), and kerosene.\16\ The term includes kerosene used in
aviation (jet fuel) as well as aviation gasoline.
---------------------------------------------------------------------------
\16\ Sec. 4083(a).
---------------------------------------------------------------------------
Section 4041(c) provides a back-up tax for liquids (other
than aviation gasoline) that are sold for use as a fuel in
aircraft and that have not been previously taxed under
section 4081.
Kerosene for use in aviation
In general
Present law generally imposes a total tax of 24.4 cents per
gallon on kerosene. However, reduced rates apply for kerosene
removed directly from a terminal into the fuel tank of an
aircraft.\17\ For kerosene removed directly from a terminal
into the fuel tank of an aircraft for use in commercial
aviation, the tax rate is 4.4 cents per gallon.\18\ For
kerosene removed directly from a terminal into the fuel tank
of an aircraft for use in noncommercial aviation, the tax
rate is 21.9 cents per gallon. All of these tax rates include
0.1 cent per gallon for the Leaking Underground Storage Tank
Trust Fund. For kerosene removed directly from a terminal
into the fuel tank of an aircraft for an exempt use (such as
for the exclusive use of a State or local government),
generally only the Leaking Underground Storage Tank Trust
Fund tax of 0.1 cent per gallon applies.
---------------------------------------------------------------------------
\17\ If certain conditions are met, present law permits the
removal of kerosene from a refueler truck, tanker, or tank
wagon to be treated as a removal from a terminal for purposes
of determining whether kerosene is removed directly into the
fuel tank of an aircraft. A refueler truck, tanker, or tank
wagon is treated as part of a terminal if: (1) the terminal
is located within an airport; (2) any kerosene which is
loaded in such truck, tanker, or tank wagon at such terminal
is for delivery only into aircraft at the airport in which
such terminal is located; and (3) no vehicle licensed for
highway use is loaded with kerosene at such terminal, except
in exigent circumstances identified by the Secretary in
regulations. To qualify for the special rule, a refueler
truck, tanker, or tank wagon must: (1) have storage tanks,
hose, and coupling equipment designed and used for the
purposes of fueling aircraft; (2) not be registered for
highway use; and (3) be operated by the terminal operator
(who operates the terminal rack from which the fuel is
unloaded) or by a person that makes a daily accounting to
such terminal operator of each delivery of fuel from such
truck, tanker, or tank wagon. Sec. 4081(a)(3).
\18\ Tax is imposed at this rate if the commercial aircraft
operator is registered with the IRS, and the fuel terminal is
located within a secured area of an airport. The IRS has
identified airports with secured areas in which a terminal is
located. See Notice 2005-4, 2005-1 C.B. 289, at sec.
4(d)(2)(ii) (2005) and Notice 2005-80, 2005-2 C.B. 953, at
sec. 3(c)(2) (2005). If the fuel terminal is located at an
unsecured airport, the fuel is taxed at 21.9 cents per gallon
if the fuel is removed directly from the terminal into the
fuel tank of an aircraft.
---------------------------------------------------------------------------
``Commercial aviation'' generally means any use of an
aircraft in the business of transporting by air persons or
property for compensation or hire.\19\ Commercial aviation
does not include transportation exempt from the ticket taxes
and air cargo taxes by reason of sections 4281 or 4282 or by
reason of section 4261(h) or 4261(i). Thus, small aircraft
operating on nonestablished lines (sec. 4281), air
transportation for affiliated group members (sec. 4282), air
transportation for skydiving (sec. 4261(h)), and certain air
transportation by seaplane (sec. 4261(i)) are excluded from
the definition of commercial aviation, and accordingly are
subject to the tax regime applicable to noncommercial
aviation.
---------------------------------------------------------------------------
\19\ Sec. 4083(b).
---------------------------------------------------------------------------
Refunds and credits to obtain the appropriate aviation tax
rate
If the kerosene is not removed directly into the fuel tank
of an aircraft, the fuel is taxed at 24.4 cents per gallon,
the rate applied to diesel fuel and kerosene used in highway
vehicles. A claim for credit or payment may be made for the
difference between the tax paid and the appropriate aviation
rate (21.9 cents per gallon for noncommercial aviation, 4.4
cents per gallon for commercial aviation, and 0.1 cent per
gallon for an exempt use).\20\
---------------------------------------------------------------------------
\20\ Sec. 6427(l)(4).
---------------------------------------------------------------------------
For noncommercial aviation, other than for exempt use, only
the registered ultimate vendor may make the claim for the
2.5-cent-per-gallon difference between the 24.4 cents
per gallon rate and the noncommercial aviation rate of
21.9 cents per gallon.\21\ For commercial aviation and
exempt use (other than State and local government use),
the ultimate purchaser may make a claim for the difference
in tax rates, or the ultimate purchaser may waive the
right to make the claim for payment to the ultimate
vendor.\22\ For State and local government use, the
registered ultimate vendor is the proper claimant.\23\
---------------------------------------------------------------------------
\21\ Sec. 6427(l)(4)(C)(ii).
\22\ Sec. 6427(l)(4)(C)(i).
\23\ See sec. 6427(l)(5). Special rules apply if the kerosene
is purchased with a credit card issued to a State or local
government.
---------------------------------------------------------------------------
Commercial aviation claimants are permitted to credit their
fuel tax claims against their other excise tax liabilities,
thereby reducing the amount of excise tax to be paid with the
excise tax return.
Transfers between the Highway Trust Fund and the Airport
and Airway Trust Fund to account for aviation use
Kerosene that is not removed directly from the terminal
into an airplane (e.g., the jet fuel is transferred from the
terminal by highway vehicle to the airport) is taxed at the
highway fuel rate of 24.4 cents per gallon. The Highway Trust
Fund is credited with 24.3 cents per gallon of the 24.4 cents
per gallon imposed. The remaining 0.1 cent is credited to the
Leaking Underground Storage Tank Trust Fund. If a claim for
payment is later made indicating that the fuel was used in
aviation, the Secretary then transfers to the Airport and
Airway Trust Fund 4.3 cents per gallon for commercial
aviation use and 21.8 cents per gallon for noncommercial
aviation use. These transfers initially are based on
estimates, and proper adjustments are made in amounts
subsequently transferred to the extent prior estimates were
in excess of, or less than, the amounts required to be
transferred. Thus, to the extent claims for credit or payment
are not made for the difference between the highway rate and
the aviation rate, the Airport and Airway Trust Fund will not
be credited for fuel used in aviation that was taxed at the
24.4 cents per gallon rate.
Aviation gasoline
The tax on aviation gasoline is 19.4 cents per gallon
(including a 0.1 cent per gallon Leaking Underground Storage
Tank Trust Fund component). If aviation gasoline is used in
commercial aviation, the ultimate purchaser may obtain a
credit or payment in the amount of 15 cents per gallon, such
that the tax rate on such gasoline is 4.4 cents per
gallon.\24\ If aviation gasoline is sold for an exempt use, a
credit or refund is allowable for all but the Leaking
Underground Storage Tank Trust Fund tax (0.1 cent per
gallon).\25\
---------------------------------------------------------------------------
\24\ Sec. 6421(f)(2).
\25\ Sec. 6416(a); sec. 6420 (farming purposes); sec.
6421(c); and sec. 6430.
---------------------------------------------------------------------------

House Bill

No provision.

Senate Amendment

The provision creates a separate category of kerosene for
tax purposes: aviation-grade kerosene.\26\ Aviation-grade
kerosene is taxed at 35.9 cents per gallon plus 0.1 cent per
gallon for the Leaking Underground Storage Tank Trust Fund.
Under the provision, aviation-grade kerosene used in
noncommercial

[[Page H299]]

aviation will be taxed at the full rate. The rate of tax for
aviation-grade kerosene used in commercial aviation and
exempt use remains unchanged.\27\
---------------------------------------------------------------------------
\26\ Aviation-grade kerosene means, as defined by the IRS,
kerosene-type jet fuel covered by ASTM specification D1655,
or military specification MIL-DTL-5624 (Grade JP-5), or MIL-
DTL-83133E (Grade JP-8). See section 4(b) of Notice 2005-4.
\27\ Accordingly, commercial aviation use will continue to be
subject to a tax of 4.4 cents per gallon and exempt use will
be subject to 0.1 cent per gallon.
---------------------------------------------------------------------------
Because the tax on aviation-grade kerosene used in
noncommercial aviation is equal to the full rate of tax
collected, the provision repeals the ultimate vendor refund
provisions for noncommercial aviation. In addition, the
provision eliminates the inter-fund transfers from the
Highway Trust Fund to the Airport and Airway Trust Fund for
kerosene used in aviation. Instead, the taxes imposed on
aviation-grade kerosene will be credited to the Airport and
Airway Trust Fund only.\28\ The provision also provides a
refund mechanism for aviation-grade kerosene used for a
taxable purpose other than in an aircraft.
---------------------------------------------------------------------------
\28\ The 0.1 cent per gallon will continue to be transferred
to the Leaking Underground Storage Tank Trust Fund.
---------------------------------------------------------------------------
In the case of aviation-grade kerosene held on April 1,
2011, by any person, a floor stocks tax is imposed equal to
the tax that would have been imposed if the increased rates
had been in effect before such date less the tax actually
imposed on such fuel. The tax is to be paid at such time and
in such manner as the Secretary shall prescribe.
The floor stocks tax does not apply to fuel held
exclusively for any use to the extent a refund or credit of
tax is allowable under the Code. The floor stocks tax does
not apply if the amount of fuel held by a person does not
exceed 2,000 gallons.
For purposes of the floor stocks tax, a controlled group is
treated as one person. ``Controlled group'' for these
purposes means a parent-subsidiary, brother-sister, or
combined corporate group with more than 50-percent ownership
with respect to either combined voting power or total value.
Under regulations, similar principles may apply to a group of
persons under common control where one or more persons are
not a corporation.
All provisions of law, including penalties, applicable with
respect to the taxes imposed by section 4081 also apply to
the floor stocks taxes to the extent not inconsistent with
the provisions of the provision. For purposes of determining
receipts to the Airport and Airway Trust Fund, the floor
stocks tax is treated as if it were a tax listed in section
9502(b)(1) (governing transfers of tax receipts to the
Airport and Airway Trust Fund).
Effective date.--The provision is generally effective for
fuel removed, entered, or sold after March 31, 2011. The
floor stocks tax is effective April 1, 2011.

Conference Agreement

The conference agreement does not include the Senate
amendment provision.

D. Air Traffic Control System Modernization Account (sec. 804 of the
Senate amendment)

Present Law

Under present law, there is no special sub-account of the
Airport and Airway Trust Fund to which funds are dedicated
for air traffic control system modernization.

House Bill

No provision.

Senate Amendment

The provision creates an Air Traffic Control System
Modernization Account (``Modernization sub-account'') within
the Airport and Airway Trust Fund to ensure sufficient
funding is provided for modernization of the air traffic
control system. The Modernization sub-account is supported
through annual transfers of $400 million from the Airport and
Airway Trust Fund that are attributable to the taxes on
aviation-grade kerosene. The funds are available, subject to
appropriation, for expenditures relating to the modernization
of the air traffic control system. Use of the funds also may
include facility and equipment account expenditures.
Effective date.--The provision is effective on the date of
enactment.

Conference Agreement

The conference agreement does not include the Senate
amendment provision.

E. Treatment of Fractional Ownership Aircraft Program Flights (sec. 805
of the Senate amendment, sec. 1103 of the conference agreement, and new
sec. 4043 of the Code)

Present Law

For excise tax purposes, fractional ownership aircraft
flights are treated as commercial aviation. As commercial
aviation, for 2012, such flights are subject to the ad
valorem tax of 7.5 percent of the amount paid for the
transportation, a $3.80 segment tax, and tax of 4.4 cents per
gallon on fuel. For international flights, fractional
ownership flights pay the $16.70 international travel
facilities tax.
For purposes of the FAA safety regulations, fractional
ownership aircraft programs are treated as a special category
of general aviation.\29\ Under those FAA regulations, a
``fractional ownership program'' is defined as any system of
aircraft ownership and exchange that consists of all of the
following elements: (i) the provision for fractional
ownership program management services by a single fractional
ownership program manager on behalf of the fractional owners;
(ii) two or more airworthy aircraft; (iii) one or more
fractional owners per program aircraft, with at least one
program aircraft having more than one owner; (iv) possession
of at least a minimum fractional ownership interest in one or
more program aircraft by each fractional owner; (v) a dry-
lease aircraft exchange arrangement among all of the
fractional owners; and (vi) multi-year program agreements
covering the fractional ownership, fractional ownership
program management services, and dry-lease aircraft exchange
aspects of the program.
---------------------------------------------------------------------------
\29\ 14 CFR Part 91, subpart k.
---------------------------------------------------------------------------

House Bill

No provision.

Senate Amendment

Under the provision, transportation as part of a fractional
ownership aircraft program is not classified as commercial
aviation for Federal excise tax purposes. Instead, such
flights would be subject to the increased Airport and Airway
Trust Fund fuel tax rate for noncommercial aviation and an
additional fuel surtax of 14.1 cents per gallon. For this
purpose, a ``fractional ownership aircraft program'' is
defined as a program in which:
A single fractional ownership program manager
provides fractional ownership program management services on
behalf of the fractional owners;
Two or more airworthy aircraft are part of the
program;
There are one or more fractional owners per
program aircraft, with at least one program aircraft having
more than one owner;
Each fractional owner possesses at least a minimum
fractional ownership interest in one or more program
aircraft;\30\
---------------------------------------------------------------------------
\30\ A ``minimum fractional ownership interest'' means: (1) A
fractional ownership interest equal to or greater than one-
sixteenth (1/16) of at least one subsonic, fixed wing or
powered lift program aircraft; or (2) a fractional ownership
interest equal to or greater than one-thirty-second (1/32) of
at least one rotorcraft program aircraft. A ``fractional
ownership interest'' is (1) the ownership interest in a
program aircraft; (2) the holding of a multi-year leasehold
interest in a program aircraft; or (3) the holding or a
multi-year leasehold interest that is convertible into an
ownership interest in a program aircraft.
---------------------------------------------------------------------------
There exists a dry-lease aircraft exchange
arrangement among all of the fractional owners;\31\ and
---------------------------------------------------------------------------
\31\ A ``dry-lease aircraft exchange'' means an arrangement,
documented by the written program agreements, under which the
program aircraft are available, on an as-needed basis without
crew, to each fractional owner.
---------------------------------------------------------------------------
There are multi-year program agreements covering
the fractional ownership, fractional ownership program
management services, and dry-lease aircraft exchange aspects
of the program.
The fuel taxes are dedicated to the Airport and Airway
Trust Fund. Consistent with the general extension of the
taxes dedicated to the Airport and Airway Trust Fund, the
provision sunsets September 30, 2013.
Effective date.--The provision is effective for taxable
transportation provided after, and fuel used after, March 31,
2011.

Conference Agreement

The conference agreement provides an exemption, through
September 30, 2015, from the commercial aviation taxes (secs.
4261, 4271 and the 4.4 cents-per-gallon tax on fuel) for
certain fractional aircraft program flights. In place of the
commercial aviation taxes, the conference agreement applies a
fuel surtax to certain flights made as part of a fractional
ownership program.
Through September 30, 2015, these flights are treated as
noncommercial aviation, subject to the fuel surtax and the
base fuel tax for fuel used in noncommercial aviation.\32\
Specifically, the additional fuel surtax of 14.1 cents per
gallon will apply to fuel used in a fractional program
aircraft (1) for the transportation of a qualified fractional
owner with respect to the fractional aircraft program of
which such aircraft is a part, and (2) with respect to the
use of such aircraft on the account of such a qualified
owner. Such use includes positioning flights (flights in
deadhead service).\33\ Through September 30, 2015, the
commercial aviation taxes do not apply to fractional program
aircraft uses subject to the fuel surtax. Under the
conference agreement, flight demonstration, maintenance, and
crew training flights by a fractional program aircraft are
excluded from the fuel surtax and are subject to the
noncommercial aviation fuel tax only.\34\ The fuel surtax of
14.1 cents per gallon sunsets September 30, 2021.
---------------------------------------------------------------------------
\32\ No inference is intended as to the treatment of these
flights as noncommercial aviation under present law.
\33\ A flight in deadhead service is presumed subject to the
fuel surtax unless the costs for such flight are separately
billed to a person other than a qualified owner. For example,
if the costs associated with a positioning flight of a
fractional program aircraft are separately billed to a person
chartering the aircraft, that positioning flight is treated
as commercial aviation.
\34\ It is the understanding of the conferees that a
prospective purchaser does not pay any amount for
transportation by demonstration flights, and that if an
amount were paid for the flight, the flight would be subject
to the commercial aviation taxes and not treated as
noncommercial aviation.
---------------------------------------------------------------------------
A ``fractional program aircraft'' means, with respect to
any fractional ownership aircraft program, any aircraft which
is listed as a fractional program aircraft in the management
specifications issued to the manager of such program by the
Federal Aviation Administration under subpart K of part 91 of
title 14, Code of Federal Regulations and is registered in
the United States.
A ``fractional ownership aircraft program'' is a program
under which:

[[Page H300]]

A single fractional ownership program manager
provides fractional ownership program management services on
behalf of the fractional owners;
There are one or more fractional owners per
program aircraft, with at least one program aircraft having
more than one owner;
With respect to at least two fractional program
aircraft, none of the ownership interests in such aircraft
can be less than the minimum fractional ownership interest,
or held by the program manager;
There exists a dry-lease aircraft exchange
arrangement among all of the fractional owners; and
There are multi-year program agreements covering
the fractional ownership, fractional ownership program
management services, and dry-lease aircraft exchange aspects
of the program.
The term ``qualified fractional owner'' means any
fractional owner that has a minimum fractional ownership
interest in at least one fractional program aircraft. A
``minimum fractional ownership interest'' means: (1) A
fractional ownership interest equal to or greater than one-
sixteenth (1/16) of at least one subsonic, fixed wing or
powered lift program aircraft; or (2) a fractional ownership
interest equal to or greater than one-thirty-second (1/32) of
at least one rotorcraft program aircraft. A ``fractional
ownership interest'' is (1) the ownership interest in a
program aircraft; (2) the holding of a multi-year leasehold
interest in a program aircraft; or (3) the holding or a
multi-year leasehold interest that is convertible into an
ownership interest in a program aircraft. A ``fractional
owner'' means a person owning any interest (including the
entire interest) in a fractional program aircraft.
Amounts equivalent to the revenues from the fuel surtax are
dedicated to the Airport and Airway Trust Fund.
Effective date.--The provision is effective for taxable
transportation provided after, uses of aircraft after, and
fuel used after, March 31, 2012.

Termination of Exemption For Small Jet Aircraft on Nonestablished Lines
(sec. 806 of the Senate amendment, sec. 1107 of the conference
agreement and sec. 4281 of the Code)

Present Law

Under present law, transportation by aircraft with a
certificated maximum takeoff weight of 6,000 pounds or less
is exempt from the excise taxes imposed on the transportation
of persons by air and the transportation of cargo by air when
operating on a nonestablished line. Similarly, when such
aircraft are operating on a flight for the sole purpose of
sightseeing, the taxes imposed on the transportation or
persons or cargo by air do not apply.

House Bill

No provision.

Senate Amendment

The provision repeals the exemption as it applies to
turbine engine powered aircraft (jet aircraft).
Effective date.--The provision is effective for
transportation provided after March 31, 2011.

Conference Agreement

The conference agreement follows the Senate amendment
provision, repealing the exemption as it applies to jet
aircraft, effective for transportation provided after March
31, 2012.

F. Transparency in Passenger Tax Disclosures (sec. 807 of the Senate
amendment, sec. 1104 of the conference agreement, and sec. 7275 of the
Code)

Present Law

Transportation providers are subject to special penalties
relating to the disclosure of the amount of the passenger
taxes on tickets and in advertising. The ticket is required
to show the total amount paid for such transportation and the
tax. The same requirements apply to advertisements. In
addition, if the advertising separately states the amount to
be paid for the transportation or the amount of taxes, the
total shall be stated at least as prominently as the more
prominently stated of the tax or the amount paid for
transportation. Failure to satisfy these disclosure
requirements is a misdemeanor, upon conviction of which the
guilty party is fined not more than $100 per violation.\35\
---------------------------------------------------------------------------
\35\ Sec. 7275.
---------------------------------------------------------------------------
There is no prohibition against airlines including other
charges in the required passenger taxes disclosure (e.g.,
fuel surcharges retained by the commercial airline). In
practice, some but not all airlines include such other
charges in the required passenger taxes disclosure.

House Bill

No provision.

Senate Amendment

The provision prohibits all transportation providers from
including amounts other than the passenger taxes imposed by
section 4261 in the required disclosure of passenger taxes on
tickets and in advertising when the amount of such tax is
separately stated. Disclosure elsewhere on tickets and in
advertising (e.g., as an amount paid for transportation) of
non-tax charges is allowed.
Effective date.--The provision is effective for
transportation provided after March 31, 2011.

Conference Agreement

The conference agreement follows the Senate amendment,
except the Effective date is for transportation provided
after March 31, 2012.

G. Tax-Exempt Private Activity Bond Financing for Fixed-Wing Emergency
Medical Aircraft (sec. 808 of the Senate amendment, sec. 1105 of the
conference agreement, and sec. 147(e) of the Code)

Present Law

Interest on bonds issued by State and local governments
generally is excluded from gross income for Federal income
tax purposes.\36\ Bonds issued by State and local governments
may be classified as either governmental bonds or private
activity bonds. Governmental bonds are bonds the proceeds of
which are primarily used to finance governmental functions or
which are repaid with governmental funds. In general, private
activity bonds are bonds in which the State or local
government serves as a conduit providing financing to
nongovernmental persons (e.g., private businesses or
individuals).\37\ The exclusion from income for State and
local bonds does not apply to private activity bonds, unless
the bonds are issued for certain permitted purposes
(``qualified bonds'') and other Code requirements are
met.\38\
---------------------------------------------------------------------------
\36\ Sec. 103(a).
\37\ See sec. 141 defining ``private activity bond.''
\38\ See sec. 103(b) and sec. 141(e).
---------------------------------------------------------------------------
Section 147(e) of the Code provides, in part, that a
private activity bond is not a qualified bond if issued as
part of an issue and any portion of the proceeds of such
issue is used for airplanes.\39\ The IRS has ruled that a
helicopter is not an ``airplane'' for purposes of section
147(e).\40\
---------------------------------------------------------------------------
\39\ Other prohibited facilities include any skybox, or other
private luxury box, health club facility, facility primarily
used for gambling, or store the principal business of which
is the sale of alcoholic beverages for consumption off
premises. Sec. 147(e).
\40\ Rev. Rul. 2003-116, 2003-46 I.R.B. 1083, 2003-2 C.B.
1083, November 17, 2003, (released: October 29, 2003).
---------------------------------------------------------------------------
A fixed-wing aircraft providing air transportation for
emergency medical services and that is equipped for, and
exclusively dedicated on that flight to, acute care emergency
medical services is exempt from the air transportation excise
taxes imposed by sections 4261 and 4271.\41\
---------------------------------------------------------------------------
\41\ Sec. 4261(g)(2).
---------------------------------------------------------------------------

House Bill

No provision.

Senate Amendment

The provision amends section 147(e) so that the prohibition
on the use of proceeds for airplanes does not apply to any
fixed-wing aircraft equipped for, and exclusively dedicated
to, providing acute care emergency medical services (within
the meaning of section 4261(g)(2)).
Effective date.--The provision is effective for obligations
issued after the date of enactment.

Conference Agreement

The conference agreement follows the Senate amendment.

H. Protection of Airport and Airway Trust Fund Solvency (sec. 809 of
the Senate amendment)

Present Law

The uncommitted cash balance in the Airport and Airway
Trust Fund has declined significantly in recent years. At the
end of Fiscal Year 2001, the uncommitted cash balance was
$7.3 billion. At the end of Fiscal Year 2010, the balance was
approximately $770 million.\42\
---------------------------------------------------------------------------
\42\ Government Accountability Office, Airport and Airway
Trust Fund: Declining Balance Raises Concerns Over Ability to
Meet Future Demands, February 3, 2011, p. 5.
---------------------------------------------------------------------------
The current statutory formula requires that estimated
Airport and Airway Trust Fund receipts each year must equal
trust fund expenditures. However, amounts appropriated from
the Airport and Airway Trust Fund are based on revenue
receipt projections and have exceeded the amounts actually
deposited into the Airport and Airway Trust Fund, resulting
in declines in the uncommitted cash balance.

House Bill

No provision.

Senate Amendment

The provision amends section 9502 to limit the budgetary
resources initially made available each fiscal year from the
Airport and Airway Trust Fund to 90 percent, rather than 100
percent, of forecasted revenues for that year.
Effective date.--The provision is effective for fiscal
years 2012 and 2013.

Conference Agreement

The conference agreement does not include the Senate
amendment provision, but this matter is addressed by section
104 of Title I of the conference agreement.

J. Rollover of Amounts Received in Airline Carrier Bankruptcy (sec. 810
of the Senate amendment and sec. 1106 of the conference agreement)

Present Law

The Code provides for two types of individual retirement
arrangements (``IRAs''): traditional IRAs and Roth IRAs.\43\
In general, contributions (other than a rollover
contribution) to a traditional IRA may be deductible from
gross income, and distributions from a traditional IRA are
includible in gross income to the extent not attributable to
a return of nondeductible contributions. In contrast,
contributions to a Roth IRA are not deductible, and qualified
distributions from a Roth IRA are excludable from gross
income. Distributions from a

[[Page H301]]

Roth IRA that are not qualified distributions are includible
in gross income to the extent attributable to earnings. In
general, a qualified distribution is a distribution that (1)
is made after the five taxable year period beginning with the
first taxable year for which the individual first made a
contribution to a Roth IRA, and (2) is made on or after the
individual attains age 59\1/2\, death, or disability or which
is a qualified special purpose distribution.
---------------------------------------------------------------------------
\43\ Traditional IRAs are described in section 408, and Roth
IRAs are described in section 408A.
---------------------------------------------------------------------------
The total amount that an individual may contribute to one
or more IRAs for a year is generally limited to the lesser
of: (1) a dollar amount ($5,000 for 2012); or (2) the amount
of the individual's compensation that is includible in gross
income for the year.\44\ As under the rules relating to
traditional IRAs, a contribution of up to the dollar limit
for each spouse may be made to a Roth IRA provided the
combined compensation of the spouses is at least equal to the
contributed amount.
---------------------------------------------------------------------------
\44\ The maximum contribution amount is increased for
individuals 50 years of age or older.
---------------------------------------------------------------------------
If an individual makes a contribution to an IRA
(traditional or Roth) for a taxable year, the individual is
permitted to recharacterize (in a trustee-to-trustee
transfer) the amount of that contribution as a contribution
to the other type of IRA (traditional or Roth) before the due
date for the individual's income tax return for that
year.\45\ In the case of a recharacterization, the
contribution will be treated as having been made to the
transferee plan. The amount transferred must be accompanied
by any net income allocable to the contribution and no
deduction is allowed with respect to the contribution to the
transferor plan. Both regular contributions and conversion
contributions to a Roth IRA can be recharacterized as having
been made to a traditional IRA. However, Treasury regulations
limit the number of times a contribution for a taxable year
may be recharacterized.\46\
---------------------------------------------------------------------------
\45\ Sec. 408A(d)(6).
\46\ Treas. Reg. sec. 1.408A-5.
---------------------------------------------------------------------------
Taxpayers generally may convert a traditional IRA into a
Roth IRA.\47\ The amount converted is includible in income as
if a withdrawal had been made, except that the early
distribution tax (discussed below) does not apply. However,
the early distribution tax is applied if the taxpayer
withdraws the amount within five years of the conversion.
---------------------------------------------------------------------------
\47\ For taxable years beginning prior to January 1, 2010,
taxpayers with modified AGI in excess of $100,000, and
married taxpayers filing separate returns, were generally not
permitted to convert a traditional IRA into a Roth IRA. Under
the Tax Increase Prevention and Reconciliation Act of 2005,
Pub. L. No. 109-222, these limits on conversion are repealed
for taxable years beginning after December 31, 2009.
---------------------------------------------------------------------------
If certain requirements are satisfied, a participant in an
employer-sponsored qualified plan (which includes a tax-
qualified retirement plan described in section 401(a), an
employee retirement annuity described in section 403(a), a
tax-sheltered annuity described in section 403(b), and a
governmental section 457(b) plan) or a traditional IRA may
roll over distributions from the plan, annuity or IRA into
another plan, annuity or IRA. For distributions after
December 31, 2007, certain taxpayers also are permitted to
make rollover contributions into a Roth IRA (subject to
inclusion in gross income of any amount that would be
includible were it not part of the rollover contribution).
Under section 125 of the Worker, Retiree, and Employer
Recovery Act of 2008 (``WRERA''),\48\ a ``qualified airline
employee'' may contribute any portion of an ``airline payment
amount'' to a Roth IRA within 180 days of receipt of such
amount (or, if later, within 180 days of enactment of the
provision). Such a contribution is treated as a qualified
rollover contribution to the Roth IRA. Thus, the portion of
the airline payment amount contributed to the Roth IRA is
includible in gross income to the extent that such payment
would be includible were it not part of the rollover
contribution.
---------------------------------------------------------------------------
\48\ Pub. L. No. 110-455.
---------------------------------------------------------------------------
A qualified airline employee is an employee or former
employee of a commercial passenger airline carrier who was a
participant in a defined benefit plan maintained by the
carrier which: (1) is qualified under section 401(a); and (2)
was terminated or became subject to the benefit accrual and
other restrictions applicable to plans maintained by
commercial passenger airlines pursuant to section 402(b) of
the Pension Protection Act of 2006 (``PPA'').
An airline payment amount is any payment of any money or
other property payable by a commercial passenger airline to a
qualified airline employee: (1) under the approval of an
order of a Federal bankruptcy court in a case filed after
September 11, 2001, and before January 1, 2007; and (2) in
respect of the qualified airline employee's interest in a
bankruptcy claim against the airline carrier, any note of the
carrier (or amount paid in lieu of a note being issued), or
any other fixed obligation of the carrier to pay a lump sum
amount. An airline payment amount does not include any amount
payable on the basis of the carrier's future earnings or
profits. The amount that may be contributed to a Roth IRA is
the gross amount of the payment; any reduction in the airline
payment amount on account of employment tax withholding is
disregarded.

House Bill

No provision.

Senate Amendment

The amendment expands the choices for recipients of airline
payment amounts by allowing qualified airline employees to
contribute airline payment amounts to a traditional IRA as a
rollover contribution. An individual making such a rollover
contribution may exclude the contributed airline payment
amount from gross income in the taxable year in which the
airline payment amount was paid.
Qualified airline employees who made a qualified rollover
contribution of an airline payment amount to a Roth IRA
pursuant to WRERA are permitted to recharacterize all or a
portion of the qualified rollover contribution as a rollover
contribution to a traditional IRA by transferring, in a
trustee-to-trustee transfer, the contribution (or a portion
thereof) plus attributable earnings (or losses) from the Roth
IRA. As in the case of a recharacterization under present
law, the airline payment amount so transferred (with
attributable earnings) is deemed to have been contributed to
the traditional IRA at the time of the initial rollover
contribution into the Roth IRA. The trustee-to-trustee
transfer to a traditional IRA must be made within 180 days of
the amendment's enactment.
If an amount contributed to a Roth IRA as a rollover
contribution is recharacterized as a rollover contribution to
a traditional IRA, the amount so recharacterized may not be
contributed to a Roth IRA as a qualified rollover
contribution (i.e., reconverted to a Roth IRA) during the
five taxable years immediately following the taxable year in
which the transfer to the traditional IRA was made.
Qualified airline employees who were eligible to make a
qualified rollover to a Roth IRA under WRERA, but declined to
do so, are now permitted to roll over the airline payment
amount to a traditional IRA within 180 days of the receipt of
the amount (or, if later, within 180 days of enactment of the
amendment). As mentioned above, any portion of an airline
payment amount recharacterized as a rollover contribution to
a traditional IRA pursuant to the amendment is excluded from
gross income in the taxable year in which the airline payment
amount was paid to the qualified airline employee by the
commercial passenger airline carrier. Individuals
recharacterizing such contributions may file a claim for a
refund until the later of: (1) the period of limitations
under section 6511(a) (generally, three years from the time
the return was filed or two years from the time the tax was
paid, whichever period expires later); or (2) April 15, 2012.
An airline payment amount does not fail to be treated as
wages for purposes of Social Security and Medicare taxes
under the Federal Insurance Contributions Act \49\ and
section 209 of the Social Security Act, merely because the
amount is excluded from gross income because it is rolled
over into a traditional IRA pursuant to the amendment.
---------------------------------------------------------------------------
\49\ Chapter 21 of the Code.
---------------------------------------------------------------------------
Surviving spouses of qualified airline employees are
granted the same rights as qualified airline employees under
section 125 of WRERA and under the amendment.
Effective date.--Effective for all transfers (made after
date of enactment) of qualified airline payment amounts
received before, on, or after date of enactment.

Conference Agreement

The conference agreement follows the Senate amendment with
three modifications. First, a qualified airline employee is
not permitted to contribute (using either a rollover or
recharacterization) an airline payment amount to a
traditional IRA for a taxable year if, before the end of the
taxable year, the employee was at any time a covered
employee, as defined in section 162(m)(3),\50\ of the
commercial passenger airline carrier making the qualified
airline payment. Second, a qualified airline employee who was
not at any time a covered employee may only roll over, or
recharacterize, into a traditional IRA 90 percent of the
aggregate amount of airline payment amounts received before
the end of the taxable year. Third, individuals
recharacterizing their contributions may file a claim for a
refund until the later of: (1) the period of limitations
under section 6511(a) (generally, three years from the time
the return was filed or two years from the time the tax was
paid, whichever period expires later); or (2) April 15, 2013.
---------------------------------------------------------------------------
\50\ Section 162(m) defines a covered employee as (1) the
chief executive officer of the corporation (or an individual
acting in such capacity) as of the close of the taxable year
and (2) the four most highly compensated officers for the
taxable year (other than the chief executive officer). Treas.
Reg. sec. 1.162-27(c)(2) provides that whether an employee is
the chief executive officer or among the four most highly
compensated officers should be determined pursuant to the
executive compensation disclosure rules promulgated under the
Securities Exchange Act of 1934. Notice 2007-49, 2007-25
I.R.B. 1429 provides that ``covered employee'' means any
employee who is (1) the principal executive officer (or an
individual acting in such capacity) defined in reference to
the Exchange Act, or (2) among the three most highly
compensated officers for the taxable year (other than the
principal executive officer) to reflect the 2006 change by
the Securities and Exchange Commission to its rules.
---------------------------------------------------------------------------

K. Application of Levy to Payments to Federal Vendors Relating to
Property (sec. 811 of the Senate amendment)

Present Law

In general
Levy is the IRS's administrative authority to seize a
taxpayer's property, or rights to property, to pay the
taxpayer's tax liability.\51\ Generally, the IRS is entitled
to seize

[[Page H302]]

a taxpayer's property by levy if a Federal tax lien has
attached to such property,\52\ and the IRS has provided both
notice of intention to levy \53\ and notice of the right to
an administrative hearing (the notice is referred to as a
``collections due process notice'' or ``CDP notice'' and the
hearing is referred to as the ``CDP hearing'') \54\ at least
30 days before the levy is made. A Federal tax lien arises
automatically when: (1) a tax assessment has been made; (2)
the taxpayer has been given notice of the assessment stating
the amount and demanding payment; and (3) the taxpayer has
failed to pay the amount assessed within 10 days after the
notice and demand.\55\
---------------------------------------------------------------------------
\51\ Sec. 6331(a). Levy specifically refers to the legal
process by which the IRS orders a third party to turn over
property in its possession that belongs to the delinquent
taxpayer named in a notice of levy.
\52\ Ibid.
\53\ Sec. 6331(d).
\54\ Sec. 6330. The notice and the hearing are referred to
collectively as the CDP requirements.
\55\ Sec. 6321.
---------------------------------------------------------------------------
The notice of intent to levy is not required if the
Secretary finds that collection would be jeopardized by
delay. The standard for determining whether jeopardy exists
is similar to the standard applicable when determining
whether assessment of tax without following the normal
deficiency procedures is permitted.\56\
---------------------------------------------------------------------------
\56\ Secs. 6331(d)(3), 6861.
---------------------------------------------------------------------------
The CDP notice (and pre-levy CDP hearing) is not required
if the Secretary finds that collection would be jeopardized
by delay or the Secretary has served a levy on a State to
collect a Federal tax liability from a State tax refund. In
addition, a levy issued to collect Federal employment taxes
is excepted from the CDP notice and the pre-levy CDP hearing
requirement if the taxpayer subject to the levy requested a
CDP hearing with respect to unpaid employment taxes arising
in the two-year period before the beginning of the taxable
period with respect to which the employment tax levy is
served. In each of these three cases, however, the taxpayer
is provided an opportunity for a hearing within a reasonable
period of time after the levy.\57\
---------------------------------------------------------------------------
\57\ Sec. 6330(f).
---------------------------------------------------------------------------
Federal payment levy program
To help the IRS collect taxes more effectively, the
Taxpayer Relief Act of 1997 \58\ authorized the establishment
of the Federal Payment Levy Program (``FPLP''), which allows
the IRS to continuously levy up to 15 percent of certain
``specified payments,'' such as government payments to
Federal contractors (including vendors) that are delinquent
on their tax obligations. With respect to Federal payments to
vendors of goods, services, or property, the continuous levy
may be up to 100 percent of each payment.\59\ The levy
(either up to 15 percent or up to 100 percent) generally
continues in effect until the liability is paid or the IRS
releases the levy.
---------------------------------------------------------------------------
\58\ Pub. L. No. 105-34.
\59\ Sec. 6331(h)(3). The word ``property'' was added to
``goods or services'' in section 301 of the ``3% Withholding
Repeal and Job Creation Act,'' Pub. L. No. 112-56.
---------------------------------------------------------------------------
Under FPLP, the IRS matches its accounts receivable records
with Federal payment records maintained by the Department of
the Treasury's Financial Management Service (``FMS''), such
as certain Social Security benefit and Federal wage records.
When these records match, the delinquent taxpayer is provided
both the notice of intention to levy and the CDP notice. If
the taxpayer does not respond after 30 days, the IRS can
instruct FMS to levy the taxpayer's Federal payments.
Subsequent payments are continuously levied until such time
that the tax debt is paid or IRS releases the levy.

House Bill

No provision.

Senate Amendment

The provision amends section 6331(h)(3) to add ``property''
to ``goods or services'' to allow the IRS to levy 100 percent
of any payment due to a Federal vendor with unpaid Federal
tax liabilities, including payments made for the sale or
lease of real estate and other types of property not
considered ``goods or services.''
Effective date.--The provision is effective for levies
issued after the date of enactment.

Conference Agreement

The conference agreement does not include the Senate
amendment provision. Section 6331(h)(3) was amended to add
``property'' to ``goods or services'' to allow the IRS to
levy 100 percent of any payment due to a Federal vendor with
unpaid Federal tax liabilities in section 301 of the ``3%
Withholding Repeal and Job Creation Act,'' Pub. L. No. 112-
56.

L. Modification of Control Definition for Purposes of Section 249 (sec.
812 of the Senate amendment, sec. 1108 of the conference agreement, and
sec. 249 of the Code)

Present Law

In general, where a corporation repurchases its
indebtedness for a price in excess of the adjusted issue
price, the excess of the repurchase price over the adjusted
issue price (the ``repurchase premium'') is deductible as
interest.\60\ However, in the case of indebtedness that is
convertible into the stock of (1) the issuing corporation,
(2) a corporation in control of the issuing corporation, or
(3) a corporation controlled by the issuing corporation,
section 249 provides that any repurchase premium is not
deductible to the extent it exceeds ``a normal call premium
on bonds or other evidences of indebtedness which are not
convertible.'' \61\
---------------------------------------------------------------------------
\60\ See Treas. Reg. sec. 1.163-7(c).
\61\ Regulations under section 249 provide that ``[f]or a
convertible obligation repurchased on or after March 2, 1998,
a call premium specified in dollars under the terms of the
obligation is considered to be a normal call premium on a
nonconvertible obligation if the call premium applicable when
the obligation is repurchased does not exceed an amount equal
to the interest (including original issue discount) that
otherwise would be deductible for the taxable year of
repurchase (determined as if the obligation were not
repurchased).'' Treas. Reg. sec. 1.249-1(d)(2). Where a
repurchase premium exceeds a normal call premium, the
repurchase premium is still deductible to the extent that it
is attributable to the cost of borrowing (e.g., a change in
prevailing yields or the issuer's creditworthiness) and not
attributable to the conversion feature. See Treas. Reg. sec.
1.249-1(e).
---------------------------------------------------------------------------
For purposes of section 249, the term ``control'' has the
meaning assigned to such term by section 368(c). Section
368(c) defines ``control'' as ``ownership of stock possessing
at least 80 percent of the total combined voting power of all
classes of stock entitled to vote and at least 80 percent of
the total number of shares of all other classes of stock of
the corporation.'' Thus, section 249 can apply to debt
convertible into the stock of the issuer, the parent of the
issuer, or a first-tier subsidiary of the issuer.

House Bill

No provision.

Senate Amendment

The provision modifies the definition of ``control'' in
section 249(b)(2) to incorporate indirect control
relationships of the nature described in section 1563(a)(1).
Section 1563(a)(1) defines a parent-subsidiary controlled
group as one or more chains of corporations connected through
stock ownership with a common parent corporation if (1) stock
possessing at least 80 percent of the total combined voting
power of all classes of stock entitled to vote or at least 80
percent of the total value of shares of all classes of stock
of each of the corporations, except the common parent
corporation, is owned (within the meaning of subsection
(d)(1)) by one or more of the other corporations; and (2) the
common parent corporation owns (within the meaning of
subsection (d)(1)) stock possessing at least 80 percent of
the total combined voting power of all classes of stock
entitled to vote or at least 80 percent of the total value of
shares of all classes of stock of at least one of the other
corporations, excluding, in computing such voting power or
value, stock owned directly by such other corporations.
Effective date.--The provision is effective for repurchases
after the date of enactment.

Conference Agreement

The conference agreement follows the Senate amendment
provision.

M. Repeal of Expansion of Information Reporting Requirements (sec. 1101
of the Senate amendment)

Present Law

A variety of information reporting requirements apply under
present law.\62\ These requirements are intended to assist
taxpayers in preparing their income tax returns and to help
the IRS determine whether such returns are correct and
complete. The primary provision governing information
reporting by payors requires an information return by every
person engaged in a trade or business who makes payments for
services or determinable gains to any one payee aggregating
$600 or more in any taxable year in the course of that
payor's trade or business.\63\ Payments subject to reporting
include fixed or determinable income or compensation, but do
not include payments for goods or certain enumerated types of
payments that are subject to other specific reporting
requirements.\64\ The payor is required to provide the
recipient of the payment with an annual statement showing the
aggregate payments made and contact information for the
payor.\65\ The regulations generally provide exceptions from
reporting of payments

[[Page H303]]

to corporations,\66\ exempt organizations, governmental
entities, international organizations, or retirement
plans.\67\ However, the following types of payments to
corporations must be reported: Medical and health care
payments; \68\ fish purchases for cash; \69\ attorney's fees;
\70\ gross proceeds paid to an attorney; \71\ substitute
payments in lieu of dividends or tax-exempt interest; \72\
and payments by a Federal executive agency for services.\73\
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\62\ Secs. 6031 through 6060.
\63\ Sec. 6041(a). Information returns are generally
submitted electronically on Forms 1096 and Forms 1099,
although certain payments to beneficiaries or employees may
require use of Forms W093 and W092, respectively. Treas. Reg.
sec. 1.6041091(a)(2). The requirement that businesses report
certain payments is generally not applicable to payments by
persons engaged in a passive investment activity. However,
for a brief period starting in 2011, the recipients of rental
income from real estate were generally subject to the same
information reporting requirements as taxpayers engaged in a
trade or business such that recipients of rental income
making payments of $600 or more to a service provider (such
as a plumber, painter, or accountant) in the course of
earning rental income were required to provide an information
return to the IRS and to the service provider. Small Business
Jobs Act of 2010, Pub. L. No. 11109240, sec. 2101, September
27, 2010. This rule was repealed in the Comprehensive 1099
Taxpayer Protection and Repayment of Exchange Subsidy
Overpayments Act of 2011, Pub. L. No. 112099, sec. 3, April
14, 2011.
\64\ Sec. 6041(a) requires reporting as to ``other fixed or
determinable gains, profits, and income (other than payments
to which section 6042(a)(1), 6044(a)(1), 6047(c), 6049(a) or
6050N(a) applies and other than payments with respect to
which a statement is required under authority of section
6042(a), 6044(a)(2) or 6045)[.]'' The payments thus excepted
include most interest, royalties, and dividends.
\65\ Sec. 6041(d).
\66\ The regulatory carveout for payments to corporations was
expressly overridden for payments made after December 31,
2011 in the Patient Protection and Affordable Care Act
(``PPACA''), Pub. L. No. 11109148, sec. 9006 March 23, 2010,
which expanded the class of payments subject to reporting to
include payments to corporations and payments of gross
proceeds paid in consideration for any type of property.
However, these rules were repealed in the Comprehensive 1099
Taxpayer Protection and Repayment of Exchange Subsidy
Overpayments Act of 2011, Pub. L. No. 112099, sec. 2, April
14, 2011.
\67\ Treas. Reg. sec. 1.6041093(p). Certain for-profit health
provider corporations are not covered by this general
exception, including those organizations providing billing
services for such companies.
\68\ Sec. 6050T.
\69\ Sec. 6050R.
\70\ Sec. 6045(f)(1) and (2); Treas. Reg. secs.
1.6041091(d)(2) and 1.6045095(d)(5).
\71\ Ibid.
\72\ Sec. 6045(d).
\73\ Sec. 6041A(d)(3). In addition, section 6050M provides
that the head of every Federal executive agency that enters
into certain contracts must file an information return
reporting the contractor's name, address, TIN, date of
contract action, amount to be paid to the contractor, and any
other information required by Forms 8596 (Information Return
for Federal Contracts) and 8596A (Quarterly Transmittal of
Information Returns for Federal Contracts).
---------------------------------------------------------------------------
Detailed rules are provided for the reporting of various
types of investment income, including interest, dividends,
and gross proceeds from brokered transactions (such as a sale
of stock).\74\ In general, the requirement to file Form 1099
applies with respect to amounts paid to U.S. persons and is
linked to the backup withholding rules of section 3406. Thus,
a payor of interest, dividends or gross proceeds generally
must request that a U.S. payee (other than certain exempt
recipients) furnish a Form W-9 providing that person's name
and taxpayer identification number.\75\ That information is
then used to complete the Form 1099.
---------------------------------------------------------------------------
\74\ Secs. 6042 (dividends), 6045 (broker reporting) and 6049
(interest), as well as the Treasury regulations thereunder.
\75\ See Treas. Reg. sec. 31.3406(h)-3.
---------------------------------------------------------------------------
Failure to comply with the information reporting
requirements results in penalties, which may include a
penalty for failure to file the information return,\76\ and a
penalty for failure to furnish payee statements,\77\ or
failure to comply with other various reporting
requirements.\78\
---------------------------------------------------------------------------
\76\ Sec. 6721. The penalty for failure to file an
information return generally is $100 for each return for
which such failure occurs. The total penalty imposed on a
person for all failures during a calendar year cannot exceed
$1,500,000. Additionally, special rules apply to reduce the
per-failure and maximum penalties where the failure is
corrected within a specified period. Small Business Jobs Act
of 2010, Pub. L. No. 11109240, sec. 2102, September 27, 2010.
\77\ Sec. 6722. The penalty for failure to provide a correct
payee statement is $100 for each statement with respect to
which such failure occurs, with the total penalty for a
calendar year not to exceed $1,500,000. Special rules apply
that increase the per-statement and total penalties where
there is intentional disregard of the requirement to furnish
a payee statement. Small Business Jobs Act of 2010, Pub. L.
No. 11109240, sec. 2102, September 27, 2010.
\78\ Sec. 6723. The penalty for failure to timely comply with
a specified information reporting requirement is $50 per
failure, not to exceed $100,000 for a calendar year.
---------------------------------------------------------------------------

House Bill

No provision.

Senate Amendment

The provisions repeals section 9006 of the Patient
Protection and Affordable Care Act, Pub. L. No. 111-148,
which expanded the class of payments subject to reporting to
include payments made to corporations and payments of gross
proceeds paid in consideration for any type of property.
Effective date.--The provision is effective on the date of
enactment.

Conference Agreement

The conference agreement does not include the Senate
amendment provision. The expanded information reporting
requirements for payments made to corporations and for
payments of gross proceeds paid in consideration for any type
of property were repealed in section 2 of the ``Comprehensive
1099 Taxpayer Protection and Repayment of Exchange Subsidy
Overpayments Act of 2011,'' Pub. L. No. 112-9.

N. Tax Complexity Analysis

Section 4022(b) of the Internal Revenue Service
Restructuring and Reform Act of 1998 (the ``IRS Reform Act'')
requires the Joint Committee on Taxation (in consultation
with the Internal Revenue Service and the Department of the
Treasury) to provide a tax complexity analysis. The
complexity analysis is required for all legislation reported
by the Senate Committee on Finance, the House Committee on
Ways and Means, or any committee of conference if the
legislation includes a provision that directly or indirectly
amends the Internal Revenue Code (the ``Code'') and has
widespread applicability to individuals or small businesses.
The staff of the Joint Committee on Taxation has determined
that a complexity analysis is not required under section
4022(b) of the IRS Reform Act because the bill contains no
provisions that have ``widespread applicability'' to
individuals or small businesses.

TITLE XII--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010

COMPLIANCE PROVISION

H1201/S901

House bill
Section 1201 specifies that the budgetary effects of this
Act, in complying with the Statutory Pay-As-You-Go act of
2010, shall be determined by reference to the latest
statement titled ``Budgetary Effects of PAYGO Legislation''
for this Act.
Senate bill
Section 901 provides that the budgetary effects of the
amendment, for purposes of complying with the Statutory Pay-
As-You-Go-Act of 2010, shall be determined by reference to
the ``Budgetary Effects'' statement of the House and Senate
Budget Committee Chairmen provided that such statement has
been submitted prior to the vote on passage in the House
acting first on this conference report or amendments between
the Houses.
Conference Substitute
Senate bill.

TITLE XIII--COMMERCIAL SPACE

COMMERCIAL SPACE LAUNCH LICENSE REQUIREMENTS

H1301/S--

House bill
Section 1301would extend the original eight year learning
period passed in the Commercial Space Launch Amendments Act
of 2004, which expires in 2012.
Current law includes an eight-year regulatory ``waiting
period,'' starting with the first FAA-licensed launch of a
``spaceflight participant'' (a person who pays to experience
spaceflight), during which commercial spaceflight providers
would not be subject to any FAA regulation, barring any
perceived or realized endangerment of public safety.
Senate bill
No similar provision.
Conference Substitute
House bill modified to prohibit proposing regulations until
October 1, 2015. Nothing in this provision is intended to
prohibit the FAA and industry stakeholders from entering into
discussions intended to prepare the FAA for its role in
appropriately regulating the commercial space flight industry
when this provision expires.

SENATE TITLE X--RESCISSION OF UNUSED TRANSPORTATION EARMARKS AND
GENERAL REPORTING REQUIREMENTS

DEFINITIONS

H--/S1001

House bill
No similar provision.
Senate bill
Section 1001 defines the term ``earmark'' as a
congressionally directed spending item as defined by Senate
rules or a congressional earmark as defined by the rules of
the House.
Conference Substitute
House bill.

RESCISSION

H--/S1002

House bill
No similar provision.
Senate bill
Section 1002 rescinds DOT earmark funds with more than 90
percent of the amount remaining available for obligation at
the end of the 9th fiscal year following the fiscal year in
which the earmark was made available for obligation. Also, it
provides an exception if the Secretary of Transportation
determines that additional obligation of the earmark is
likely to occur during the following 12 month period.
Conference Substitute
House bill.

AGENCY WIDE IDENTIFICATION AND REPORTS

H--/S1003

House bill
No similar provision.
Senate bill
Section 1003 requires each federal agency to identify and
report every project that is an earmark with an unobligated
balance at the end of each fiscal year to the Director of the
Office of Management and Budget (OMB). Also, it requires the
Director of OMB to submit an annual report on these earmarks
to Congress and publically post the report on the OMB
website.
Conference Substitute
House bill.

SENATE TITLE XI--REPEAL OF EXPANSION OF INFORMATION REPORTING
REQUIREMENTS

REPEAL OF EXPANSION OF INFORMATION REPORTING REQUIREMENTS

H--/S1101

House bill
No similar provision.
Senate bill
Section 1101 repeals a section of the Patient Protection
and Affordable Care Act which required businesses to report
purchases of $600 or more to the Internal Revenue Service
(IRS).
Conference Substitute
Senate bill dropped because the language was used to create
P.L. 112-9, The Comprehensive 1099 Taxpayer Protection and
Repayment of Exchange Subsidy Overpayments Act of 2011.

[[Page H304]]

TITLE XII--EMERGENCY MEDICAL SERVICE PROVIDERS PROTECTION ACT

DALE LONG EMERGENCY MEDICAL SERVICES PROVIDERS PROTECTION ACT

H--/S1201,1211,1212,1213

House bill
No similar provision.
Senate bill
Section 1201 provides liability protection for volunteer
pilots that fly for public benefit, including transportation
at no cost to financially needy medical patients for medical
treatment, evaluation and diagnosis; flights for humanitarian
and charitable purposes; and other flights of compassion.
Section 1211 provides a title for the subtitle, the
``Volunteer Pilot Protection Act of 2011.''
Section 1212 states findings of Congress on the necessity
of protections for pilots who volunteer their services.
Section 1213 allows pilots who operate volunteer flights
for most charitable institutions to receive reimbursement
form those institutions for some operations costs including
fuel.
Conference Substitute
No provision.
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, no provision in this conference report or
joint explanatory statement includes a congressional earmark,
limited tax benefit, or limited tariff benefit.
From the Committee on Transportation and Infrastructure, for
consideration of the House bill and the Senate amendment, and
modifications committed to conference:
John L. Mica,
Thomas E. Petri,
John J. Duncan, Jr.,
Sam Graves,
Bill Shuster,
Jean Schmidt,
Chip Cravaack,
Nick J. Rahall II,
Peter A. DeFazio,
Jerry F. Costello,
Leonard L. Boswell,
Russ Carnahan,
From the Committee on Science, Space, and Technology, for
consideration of sections 102, 105, 201, 202, 204, 208, 209,
212, 220, 321, 324, 326, 812, title X, and title XIII of the
House bill and sections 102, 103, 106, 216, 301, 302, 309,
320, 327, title VI, and section 732 of the Senate amendment,
and modifications committed to conference:
Ralph M. Hall,
Steven M. Palazzo,
Eddie Bernice Johnson,
From the Committee on Ways and Means, for consideration of
title XI of the House bill and titles VIII and XI of the
Senate amendment, and modifications committed to conference:
Dave Camp,
Patrick J. Tiberi,
Sander M. Levin,
Managers on the Part of the House.
John D. Rockefeller IV,
Barbara Boxer,
Bill Nelson,
Maria Cantwell,
Kay Bailey Hutchison,
Johnny Isakson,
From the Committee on Finance:
Max Baucus.
Managers on the Part of the Senate.

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