[Congressional Record (Bound Edition), Volume 158 (2012), Part 1]
[House]
[Pages 610-687]
[From the U.S. 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.

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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.
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.

[[Page 612]]

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.

          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).''.

[[Page 613]]



                 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''.
       (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).

[[Page 614]]

       ``(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
       ``(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:

[[Page 615]]

       ``(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,''.
       (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.''.

[[Page 616]]

       (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--

       ``(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.''.

     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--
       (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.

[[Page 617]]



     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'';
       (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

[[Page 618]]

     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 
     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

[[Page 619]]

       (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 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

[[Page 620]]

     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 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);

[[Page 621]]

       (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--

       (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 reduction compared to current performance;

       (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;
       (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--

[[Page 622]]

       (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.
       (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,

[[Page 623]]

     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 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--

[[Page 624]]

       (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.
       ``(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.''.

[[Page 625]]

       (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.
       ``(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

[[Page 626]]

     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.
       (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

[[Page 627]]

     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.
       (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.--

[[Page 628]]

       (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 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.

[[Page 629]]

       (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.''.

     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--

[[Page 630]]

       (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 (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--

[[Page 631]]

       ``(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;
       (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;

[[Page 632]]

       (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;
       ``(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:

[[Page 633]]

       ``(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.

     ``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.

[[Page 634]]

       ``(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);
       (2) in subparagraph (C) by striking the period at the end 
     and inserting a semicolon; and

[[Page 635]]

       (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.''.

[[Page 636]]

       (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.--
       ``(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

[[Page 637]]

     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 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.

[[Page 638]]

       ``(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.
       ``(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

[[Page 639]]

     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 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.

[[Page 640]]

       (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,''.

                       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

[[Page 641]]

     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 (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);

[[Page 642]]

       (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 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

[[Page 643]]

     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;
       (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'--

[[Page 644]]

       ``(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, 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;

[[Page 645]]

       (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.
       ``(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

[[Page 646]]

       (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 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.

       (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 FAA energy-related and environment-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 energy-
     related and environment-related research programs at NASA, 
     NOAA, and other relevant agencies;
       (3) the programs have allocated appropriate resources to 
     each of the research objectives; and
       (4) there exist suitable mechanisms for transitioning the 
     research results into the FAA's operational technologies and 
     procedures and certification activities.
       (b) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to the Committee on Science, Space, and Technology of 
     the House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate containing the 
     results of the review.

     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;

[[Page 647]]

       (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
       (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:

[[Page 648]]



     ``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
       ``(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

[[Page 649]]

     (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.
       (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.

[[Page 650]]



     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 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

[[Page 651]]

     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.
     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 7
       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,

[[Page 652]]

     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 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.

[[Page 653]]

       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.
     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

[[Page 654]]

     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 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

[[Page 655]]

     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.
     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

[[Page 656]]

     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 
     directsthe 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''.


                  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.

[[Page 657]]

       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.
     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.

[[Page 658]]


     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.
     Conference Substitute
       House bill.

[[Page 659]]




            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

[[Page 660]]

     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 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.

[[Page 661]]


     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.
     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 
     forfacilitating 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

[[Page 662]]

     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. 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.

[[Page 663]]




         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.
     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

[[Page 664]]

     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 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.

[[Page 665]]


     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.
     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

[[Page 666]]

     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 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

[[Page 667]]

     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 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.

[[Page 668]]


     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 
     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

[[Page 669]]

     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 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

[[Page 670]]

     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 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 propermaintenance 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

[[Page 671]]

     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.
     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).

[[Page 672]]


     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 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

[[Page 673]]

     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 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.

[[Page 674]]




                              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 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

[[Page 675]]

     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 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

[[Page 676]]

     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.
     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

[[Page 677]]

     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.
     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

[[Page 678]]

     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- 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

[[Page 679]]

     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 January 1) 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. 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

[[Page 680]]

     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 September 30, 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 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

[[Page 681]]

     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 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

[[Page 682]]

     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:
        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.

[[Page 683]]

       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 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

[[Page 684]]

     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 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

[[Page 685]]

     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 686]]

      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. 111-240, 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. 112-9, 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. 112-9, 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. 111-240, 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. 111-240, 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

[[Page 687]]

     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.

     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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