[House Report 110-331]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-331

======================================================================
 
                    FAA REAUTHORIZATION ACT OF 2007

                                _______
                                

 September 17, 2007.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Oberstar, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 2881]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2881) to amend title 49, United 
States Code, to authorize appropriations for the Federal 
Aviation Administration for fiscal years 2008 through 2011, to 
improve aviation safety and capacity, to provide stable funding 
for the national aviation system, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``FAA Reauthorization 
Act of 2007''.
  (b) Table of Contents.--

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.

                 Subtitle B--Passenger Facility Charges

Sec. 111. PFC authority.
Sec. 112. PFC eligibility for bicycle storage.
Sec. 113. Noise compatibility projects.
Sec. 114. Intermodal ground access project pilot program.
Sec. 115. Impacts on airports of accommodating connecting passengers.

                   Subtitle C--Fees for FAA Services

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

                     Subtitle D--AIP Modifications

Sec. 131. Amendments to AIP definitions.
Sec. 132. Amendments to grant assurances.
Sec. 133. Government share of project costs.
Sec. 134. Amendments to allowable costs.
Sec. 135. Uniform certification training for airport concessions under 
disadvantaged business enterprise program.
Sec. 136. Preference for small business concerns owned and controlled 
by disabled veterans.
Sec. 137. Calculation of State apportionment fund.
Sec. 138. Reducing apportionments.
Sec. 139. Minimum amount for discretionary fund.
Sec. 140. Marshall Islands, Micronesia, and Palau.
Sec. 141. Use of apportioned amounts.
Sec. 142. Sale of private airport to public sponsor.
Sec. 143. Airport privatization pilot program.
Sec. 144. Airport security program.
Sec. 145. Sunset of pilot program for purchase of airport development 
rights.
Sec. 146. Extension of grant authority for compatible land use planning 
and projects by State and local governments.
Sec. 147. Repeal of limitations on Metropolitan Washington Airports 
Authority.
Sec. 148. Midway Island Airport.
Sec. 149. Miscellaneous amendments.

              TITLE II--AIR TRAFFIC CONTROL MODERNIZATION

         Subtitle A--Next Generation Air Transportation System

Sec. 201. Mission statement; sense of Congress.
Sec. 202. Next generation air transportation system joint planning and 
development office.
Sec. 203. Next Generation Air Transportation Senior Policy Committee.
Sec. 204. Automatic dependent surveillance-broadcast services.
Sec. 205. Inclusion of stakeholders in air traffic control 
modernization projects.
Sec. 206. GAO review of challenges associated with transforming to the 
Next Generation Air Transportation System.
Sec. 207. GAO review of Next Generation Air Transportation System 
acquisition and procedures development.
Sec. 208. DOT inspector general review of operational and approach 
procedures by a third party.
Sec. 209. Expert review of enterprise architecture for Next Generation 
Air Transportation System.
Sec. 210. NEXTGEN technology testbed.

                       Subtitle B--Miscellaneous

Sec. 211. Clarification of authority to enter into reimbursable 
agreements.
Sec. 212. Definition of air navigation facility.
Sec. 213. Improved management of property inventory.
Sec. 214. Clarification to acquisition reform authority.
Sec. 215. Assistance to foreign aviation authorities.
Sec. 216. Front line manager staffing.
Sec. 217. Flight service stations.

                           TITLE III--SAFETY

                     Subtitle A--General Provisions

Sec. 301. Age standards for pilots.
Sec. 302. Judicial review of denial of airman certificates.
Sec. 303. Release of data relating to abandoned type certificates and 
supplemental type certificates.
Sec. 304. Inspection of foreign repair stations.
Sec. 305. Runway incursion reduction.
Sec. 306. Improved pilot licenses.
Sec. 307. Aircraft fuel tank safety improvement.
Sec. 308. Flight crew fatigue.
Sec. 309. OSHA standards.
Sec. 310. Aircraft surveillance in mountainous areas.
Sec. 311. Off-airport, low-altitude aircraft weather observation 
technology.

                 Subtitle B--Unmanned Aircraft Systems

Sec. 321. Commercial unmanned aircraft systems integration plan.
Sec. 322. Special rules for certain unmanned aircraft systems.
Sec. 323. Public unmanned aircraft systems.
Sec. 324. Definitions.

                   TITLE IV--AIR SERVICE IMPROVEMENTS

Sec. 401. Monthly air carrier reports.
Sec. 402. Flight operations at Reagan National Airport.
Sec. 403. EAS contract guidelines.
Sec. 404. Essential air service reform.
Sec. 405. Small community air service.
Sec. 406. Air passenger service improvements.
Sec. 407. Contents of competition plans.
Sec. 408. Extension of competitive access reports.
Sec. 409. Contract tower program.
Sec. 410. Airfares for members of the Armed Forces.
Sec. 411. Medical oxygen and portable respiratory assistive devices.

          TITLE V--ENVIRONMENTAL STEWARDSHIP AND STREAMLINING

Sec. 501. Amendments to air tour management program.
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. CLEEN engine and airframe technology partnership.
Sec. 506. Prohibition on operating certain aircraft weighing 75,000 
pounds or less not complying with stage 3 noise levels.
Sec. 507. Environmental mitigation pilot program.
Sec. 508. Aircraft departure queue management pilot program.
Sec. 509. High performance and sustainable air traffic control 
facilities.
Sec. 510. Regulatory responsibility for aircraft engine noise and 
emissions standards.
Sec. 511. Production of alternative jet fuel technology for civil 
aircraft.

                TITLE VI--FAA EMPLOYEES AND ORGANIZATION

Sec. 601. Federal Aviation Administration personnel management system.
Sec. 602. MSPB remedial authority for FAA employees.
Sec. 603. FAA technical training and staffing.
Sec. 604. Designee program.
Sec. 605. Staffing model for aviation safety inspectors.
Sec. 606. Safety critical staffing.
Sec. 607. Center for excellence in aviation employment.
Sec. 608. FAA air traffic controller staffing.
Sec. 609. Assessment of training programs for air traffic controllers.
Sec. 610. Collegiate training initiative study.

                     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.
Sec. 705. Extension of program authority.

                       TITLE VIII--MISCELLANEOUS

Sec. 801. Air carrier citizenship.
Sec. 802. Disclosure of data to Federal agencies in interest of 
national security.
Sec. 803. FAA access to criminal history records and database systems.
Sec. 804. Clarification of air carrier fee disputes.
Sec. 805. Study on national plan of integrated airport systems.
Sec. 806. Express carrier employee protection.
Sec. 807. Consolidation and realignment of FAA facilities.
Sec. 808. Transportation Security Administration centralized training 
facility feasibility study.
Sec. 809. GAO study on cooperation of airline industry in international 
child abduction cases.
Sec. 810. Lost Nation Airport, Ohio.
Sec. 811. Pollock Municipal Airport, Louisiana.
Sec. 812. Human intervention and motivation study program.
Sec. 813. Washington, D.C., Air Defense Identification Zone.
Sec. 814. Merrill Field Airport, Anchorage, Alaska.
Sec. 815. William P. Hobby Airport, Houston, Texas.

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 apply only to fiscal years beginning after 
September 30, 2007.

                        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--
          (1) by striking ``September 30, 2003'' and inserting 
        ``September 30, 2007''; and
          (2) by striking paragraphs (1) through (4) and inserting the 
        following:
          ``(1) $3,800,000,000 for fiscal year 2008;
          ``(2) $3,900,000,000 fiscal year 2009;
          ``(3) $4,000,000,000 fiscal year 2010; and
          ``(4) $4,100,000,000 fiscal year 2011.''.
  (b) Obligational Authority.--Section 47104(c) is amended by striking 
``September 30, 2007'' and inserting ``September 30, 2011''.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

  (a) Authorization of Appropriations.--Section 48101(a) is amended by 
striking paragraphs (1) through (4) and inserting the following:
          ``(1) $3,120,000,000 for fiscal year 2008.
          ``(2) $3,246,000,000 for fiscal year 2009.
          ``(3) $3,259,000,000 for fiscal year 2010.
          ``(4) $3,353,000,000 for fiscal year 2011.''.
  (b) Use of Funds.--Section 48101 is amended by striking subsections 
(c) through (i) and inserting the following:
  ``(c) Wake Vortex Mitigation.--Of amounts appropriated under 
subsection (a), such sums as may be necessary for each of fiscal years 
2008 through 2011 may be used for the development and analysis of wake 
vortex mitigation, including advisory systems.
  ``(d) Weather Hazards.--
          ``(1) In general.--Of amounts appropriated under subsection 
        (a), such sums as may be necessary for each of fiscal years 
        2008 through 2011 may be used for the development of in-flight 
        and ground-based weather threat mitigation systems, including 
        ground de-icing and anti-icing systems and other systems for 
        predicting, detecting, and mitigating the effects of certain 
        weather conditions on both airframes and engines.
          ``(2) Specific hazards.--Weather conditions referred to in 
        paragraph (1) include--
                  ``(A) ground-based icing threats such as ice pellets 
                and freezing drizzle;
                  ``(B) oceanic weather, including convective weather, 
                and other hazards associated with oceanic operations 
                (where commercial traffic is high and only rudimentary 
                satellite sensing is available) to reduce the hazards 
                presented to commercial aviation, including convective 
                weather ice crystal ingestion threats; and
                  ``(C) en route turbulence prediction.
  ``(e) Safety Management Systems.--Of amounts appropriated under 
subsection (a) and section 106(k)(1), such sums as may be necessary for 
each of fiscal years 2008 through 2011 may be used to advance the 
development and implementation of safety management systems.
  ``(f) Runway Incursion Reduction Programs.--Of amounts appropriated 
under subsection (a), $8,000,000 for fiscal year 2008, $10,000,000 for 
fiscal year 2009, $12,000,000 for fiscal year 2010, and $12,000,000 for 
fiscal year 2011 may be used for the development and implementation of 
runway incursion reduction programs.
  ``(g) Runway Status Lights.--Of amounts appropriated under subsection 
(a), $15,000,000 for fiscal year 2008, $27,000,000 for fiscal year 
2009, $12,000,000 for fiscal year 2010, and $20,000,000 for 2011 may be 
used for the acquisition and installation of runway status lights.''.

SEC. 103. FAA OPERATIONS.

  (a) In General.--Section 106(k)(1) is amended by striking 
subparagraphs (A) through (D) and inserting the following:
                  ``(A) $8,726,000,000 for fiscal year 2008;
                  ``(B) $8,978,000,000 for fiscal year 2009;
                  ``(C) $9,305,000,000 for fiscal year 2010; and
                  ``(D) $9,590,000,000 for fiscal year 2011.''.
  (b) Authorized Expenditures.--Section 106(k)(2) is amended--
          (1) by striking subparagraphs (A), (B), (C), (D), and (F);
          (2) by redesignating subparagraphs (E) and (G) as 
        subparagraphs (A) and (B), respectively; and
          (3) in subparagraphs (A) and (B) (as so redesignated) by 
        striking ``2004 through 2007'' and inserting ``2008 through 
        2011''.
  (c) Airline Data and Analysis.--There is authorized to be 
appropriated to the Secretary of Transportation out of the Airport and 
Airway Trust Fund established by section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to fund airline data collection and 
analysis by the Bureau of Transportation Statistics in the Research and 
Innovative Technology Administration of the Department of 
Transportation--
          (1) $4,000,000 for fiscal year 2008; and
          (2) $6,000,000 for each of fiscal years 2009, 2010, and 2011.

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 through fiscal year 2011 pursuant to 
                sections 48101, 48102, 48103, and 106(k) shall--
                          ``(i) in each of fiscal years 2008 and 2009, 
                        be equal to 95 percent of the estimated level 
                        of receipts plus interest credited to the 
                        Airport and Airway Trust Fund for that fiscal 
                        year; and
                          ``(ii) in each of fiscal years 2010 and 2011, 
                        be equal to the sum of--
                                  ``(I) 95 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 aviation investment 
                programs listed in subsection (b).''.
  (b) Additional Authorizations of Appropriations From the General 
Fund.--Section 48114(a)(2) is amended by striking ``2007'' and 
inserting ``2011''.
  (c) 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''.
  (d) Enforcement of Guarantees.--Section 48114(c)(2) is amended by 
striking ``2007'' and inserting ``2011''.

                 Subtitle B--Passenger Facility Charges

SEC. 111. PFC AUTHORITY.

  (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) Increase in PFC Maximum Level.--Section 40117(b)(4) is amended by 
striking ``$4.00 or $4.50'' and inserting ``$4.00, $4.50, $5.00, $6.00, 
or $7.00''.
  (c) Pilot Program for PFC at Nonhub Airports.--Section 40117(l) is 
amended--
          (1) by striking paragraph (7); and
          (2) by redesignating paragraph (8) as paragraph (7).
  (d) 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.--Subtitle VII is amended by striking 
        ``fee'' and inserting ``charge'' each place it appears in each 
        of the following sections:
                  (A) Section 47106(f)(1).
                  (B) Section 47110(e)(5).
                  (C) Section 47114(f).
                  (D) Section 47134(g)(1).
                  (E) Section 47139(b).
                  (F) Section 47524(e).
                  (G) Section 47526(2).

SEC. 112. PFC ELIGIBILITY FOR BICYCLE STORAGE.

  (a) In General.--Section 40117(a)(3) is amended by adding at the end 
the following:
                  ``(H) A project to construct secure bicycle storage 
                facilities that are to be used by passengers at the 
                airport and that are in compliance with applicable 
                security standards.''.
  (b) Report to Congress.--Not later than one year after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration shall submit to Congress a report on the progress being 
made by airports to install bicycle parking for airport customers and 
airport employees.

SEC. 113. NOISE COMPATIBILITY PROJECTS.

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

SEC. 114. INTERMODAL GROUND ACCESS PROJECT PILOT PROGRAM.

  Section 40117 is amended by adding at the end the following:
  ``(n) Pilot Program for PFC Eligibility for Intermodal Ground Access 
Projects.--
          ``(1) PFC eligibility.--Subject to the requirements of this 
        subsection, the Secretary shall establish a pilot program under 
        which the Secretary may authorize, at no more than 5 airports, 
        a passenger facility charge imposed under subsection (b)(1) or 
        (b)(4) to be used to finance the eligible cost of an intermodal 
        ground access project.
          ``(2) Intermodal ground access project defined.--In this 
        section, the term `intermodal ground access project' means a 
        project for constructing a local facility owned or operated by 
        an eligible agency that is directly and substantially related 
        to the movement of passengers or property traveling in air 
        transportation.
          ``(3) Eligible costs.--
                  ``(A) In general.--For purposes of paragraph (1), the 
                eligible cost of an intermodal ground access project 
                shall be the total cost of the project multiplied by 
                the ratio that--
                          ``(i) the number of individuals projected to 
                        use the project to gain access to or depart 
                        from the airport; bears to
                          ``(ii) the total number of the individuals 
                        projected to use the facility.
                  ``(B) Determinations regarding projected project 
                use.--
                          ``(i) In general.--Except as provided by 
                        clause (ii), the Secretary shall determine the 
                        projected use of a project for purposes of 
                        subparagraph (A) at the time the project is 
                        approved under this subsection.
                          ``(ii) Public transportation projects.--In 
                        the case of a project approved under this 
                        section to be financed in part using funds 
                        administered by the Federal Transit 
                        Administration, the Secretary shall use the 
                        travel forecasting model for the project at the 
                        time such project is approved by the Federal 
                        Transit Administration to enter preliminary 
                        engineering to determine the projected use of 
                        the project for purposes of subparagraph 
                        (A).''.

SEC. 115. IMPACTS ON AIRPORTS OF ACCOMMODATING CONNECTING PASSENGERS.

  (a) Study.--Not later than 90 days after the date of enactment of 
this Act, the Secretary of Transportation shall initiate a study to 
evaluate--
          (1) the impacts on airports of accommodating connecting 
        passengers; and
          (2) the treatment of airports at which the majority of 
        passengers are connecting passengers under the passenger 
        facility charge program authorized by section 40117 of title 
        49, United States Code.
  (b) Contents of Study.--In conducting the study, the Secretary shall 
review, at a minimum, the following:
          (1) the differences in facility needs, and the costs for 
        constructing, maintaining, and operating those facilities, for 
        airports at which the majority of passengers are connecting 
        passengers as compared to airports at which the majority of 
        passengers are originating and destination passengers;
          (2) whether the costs to an airport of accommodating 
        additional connecting passengers differs from the cost of 
        accommodating additional originating and destination 
        passengers;
          (3) for each airport charging a passenger facility charge, 
        the percentage of passenger facility charge revenue 
        attributable to connecting passengers and the percentage of 
        such revenue attributable to originating and destination 
        passengers;
          (4) the potential effects on airport revenues of requiring 
        airports to charge different levels of passenger facility 
        charges on connecting passengers and originating and 
        destination passengers; and
          (5) the added costs to air carriers of collecting passenger 
        facility charges under a system in which different levels of 
        passenger facility charges are imposed on connecting passengers 
        and originating and destination passengers.
  (c) Report to Congress.--
          (1) In general.--Not later than one year after the date of 
        initiation of the study, the Secretary shall submit to Congress 
        a report on the results of the study.
          (2) Contents.--The report shall include--
                  (A) the findings of the Secretary on each of the 
                subjects listed in subsection (b); and
                  (B) recommendations, if any, of the Secretary based 
                on the results of the study for any changes to the 
                passenger facility charge program, including 
                recommendations as to whether different levels of 
                passenger facility charges should be imposed on 
                connecting passengers and originating and destination 
                passengers.

                   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 
        subsection (a), 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. Services for which costs may be recovered include the 
        costs of air traffic control, navigation, weather services, 
        training, and emergency services which are available to 
        facilitate safe transportation over the United States and 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. The determination of 
        such costs by the Administrator, and the allocation of such 
        costs by the Administrator to services provided, are not 
        subject to judicial review.
          ``(2) Adjustment of fees.--The Administrator shall adjust the 
        overflight fees established by subsection (a)(1) by expedited 
        rulemaking and begin collections under the adjusted fees by 
        October 1, 2008. In developing the adjusted overflight fees, 
        the Administrator may seek and consider the recommendations 
        offered by an aviation rulemaking committee for overflight fees 
        that are provided to the Administrator by June 1, 2008, and are 
        intended to ensure that overflight fees are reasonably related 
        to the Administrator's costs of providing air traffic control 
        and related services to overflights.
          ``(3) 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.
          ``(4) Costs defined.--In this subsection, the term `costs' 
        includes those costs associated with the operation, 
        maintenance, leasing costs, and overhead expenses of the 
        services provided and the facilities and equipment used in such 
        services, including the projected costs for the period during 
        which the services will be provided.
          ``(5) Publication; comment.--The Administrator shall publish 
        in the Federal Register any fee schedule under this section, 
        including any adjusted overflight fee schedule, and the 
        associated collection process as an interim final rule, 
        pursuant to which public comment will be sought and a final 
        rule issued.''.
  (b) Adjustments.--Section 45301 is amended by adding at the end the 
following:
  ``(e) Adjustments.--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.--The Administrator of the Federal 
Aviation Administration shall establish the following fees for services 
and activities of the Administration:
          ``(1) $130 for registering an aircraft.
          ``(2) $45 for replacing an aircraft registration.
          ``(3) $130 for issuing an original dealer's aircraft 
        certificate.
          ``(4) $105 for issuing an aircraft certificate (other than an 
        original dealer's aircraft certificate).
          ``(5) $80 for issuing a special registration number.
          ``(6) $50 for issuing a renewal of a special registration 
        number.
          ``(7) $130 for recording a security interest in an aircraft 
        or aircraft part.
          ``(8) $50 for issuing an airman certificate.
          ``(9) $25 for issuing a replacement airman certificate.
          ``(10) $42 for issuing an airman medical certificate.
          ``(11) $100 for providing a legal opinion pertaining to 
        aircraft registration or recordation.
  ``(b) Fees Credited as Offsetting Collections.--
          ``(1) In general.--Notwithstanding section 3302 of title 31, 
        any fee authorized to be collected under this section shall, 
        subject to appropriation made in advance--
                  ``(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; 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 periodically 
        adjust the fees established by subsection (a) when cost data 
        from the cost accounting system developed pursuant to section 
        45303(e) reveal that the cost of providing the service is 
        higher or lower than the cost data that were used to establish 
        the fee then in effect.''.
  (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--AIP Modifications

SEC. 131. AMENDMENTS TO AIP DEFINITIONS.

  (a) Airport Development.--Section 47102(3) is amended--
          (1) in subparagraph (B)(iv) by striking ``20'' and inserting 
        ``9''; and
          (2) by adding at the end the following:
                  ``(M) construction of mobile refueler parking within 
                a fuel farm at a nonprimary airport meeting the 
                requirements of section 112.8 of title 40, Code of 
                Federal Regulations.
                  ``(N) terminal development under section 47119(a).
                  ``(O) acquiring and installing facilities and 
                equipment to provide air conditioning, heating, or 
                electric power from terminal-based, non-exclusive 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 by inserting 
before the period at the end the following: ``and developing an 
environmental management system''.
  (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 that 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 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. 132. AMENDMENTS TO 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)(A)(iii) is amended 
        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)''.
          (2) Eligible projects.--Section 47107(c) is amended by adding 
        at the end the following:
          ``(4) Priorities for reinvestment.--In approving the 
        reinvestment or transfer of proceeds under subsection 
        (c)(2)(A)(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 sections 
                47114, 47115, or 47117.
                  ``(D) Transfer to a sponsor of another public airport 
                to be reinvested in an approved noise compatibility 
                project at such airport.
                  ``(E) Payment to the Secretary for deposit in the 
                Airport and Airway Trust Fund.''.
  (c) Clerical Amendment.--Section 47107(c)(2)(B)(iii) is amended by 
striking ``the Fund'' and inserting ``the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 1986 (26 
U.S.C. 9502)''.

SEC. 133. 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 specifically 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 
following such change in hub status.
  ``(f) Special Rule for Economically Depressed Communities.--The 
Government's share of allowable project costs shall be 95 percent for a 
project at an airport that--
          ``(1) is receiving subsidized air service 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. 134. AMENDMENTS TO ALLOWABLE COSTS.

  (a) Allowable Project Costs.--Section 47110(b)(2) is amended--
          (1) by striking ``or'' at the end of subparagraph (C);
          (2) by striking the semicolon at the end of subparagraph (D) 
        and inserting ``; or''; and
          (3) by adding at the end the following:
          ``(E) 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 due to the short construction season 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;
                  ``(iii) the sponsor notifies the Secretary before 
                authorizing work to commence on the project; and
                  ``(iv) 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) 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.''.
  (c) Nonprimary Airports.--Section 47110(h) is amended--
          (1) by inserting ``construction of'' before ``revenue 
        producing''; and
          (2) by striking ``, including fuel farms and hangars,''.

SEC. 135. UNIFORM CERTIFICATION TRAINING FOR AIRPORT CONCESSIONS UNDER 
                    DISADVANTAGED BUSINESS ENTERPRISE PROGRAM.

  (a) In General.--Section 47107(e) is amended--
          (1) by redesignating paragraph (8) as paragraph (9); and
          (2) by inserting after paragraph (7) the following:
          ``(8) Mandatory training program for airport concessions.--
                  ``(A) In general.--Not later than one year after the 
                date of enactment of the FAA Reauthorization Act of 
                2007, the Secretary shall establish a mandatory 
                training program for persons described in subparagraph 
                (C) on the certification of whether a small business 
                concern in airport concessions qualifies as a small 
                business concern owned and controlled by a socially and 
                economically disadvantaged individual for purposes of 
                paragraph (1).
                  ``(B) Implementation.--The training program may be 
                implemented by one or more private entities approved by 
                the Secretary.
                  ``(C) Participants.--A person referred to in 
                paragraph (1) is an official or agent of an airport 
                owner or operator who is required to provide a written 
                assurance under paragraph (1) that the airport owner or 
                operator will meet the percentage goal of paragraph (1) 
                or who is responsible for determining whether or not a 
                small business concern in airport concessions qualifies 
                as a small business concern owned and controlled by a 
                socially and economically disadvantaged individual for 
                purposes of paragraph (1).
                  ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this paragraph.''.
  (b) Report.--Not later than 24 months after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Transportation 
and Infrastructure of the House of Representatives, the Committee on 
Commerce, Science, and Transportation of the Senate, and other 
appropriate committees of Congress a report on the results of the 
training program conducted under the amendment made by subsection (a).

SEC. 136. PREFERENCE FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED 
                    BY DISABLED VETERANS.

  Section 47112(c) is amended by adding at the end the following:
  ``(3) A contract involving labor for carrying out an airport 
development project under a grant agreement under this subchapter must 
require that a preference be given to the use of small business 
concerns (as defined in section 3 of the Small Business Act (15 U.S.C. 
1632)) owned and controlled by disabled veterans.''.

SEC. 137. CALCULATION OF STATE APPORTIONMENT FUND.

  Section 47114(d) is amended--
          (1) in paragraph (2)--
                  (A) by striking ``Except as provided in paragraph 
                (3), the Secretary'' and inserting ``The Secretary''; 
                and
                  (B) by striking ``18.5 percent'' and inserting ``10 
                percent''; and
          (2) by striking paragraph (3) and inserting the following:
          ``(3) Additional amount.--
                  ``(A) In general.--In addition to amounts apportioned 
                under paragraph (2) and subject to subparagraph (B), 
                the Secretary shall apportion to each airport, 
                excluding primary airports but including reliever and 
                nonprimary commercial service airports, in States the 
                lesser of--
                          ``(i) $150,000; or
                          ``(ii) 1/5 of the most recently published 
                        estimate of the 5-year costs for airport 
                        improvement for the airport, as listed in the 
                        national plan of integrated airport systems 
                        developed by the Federal Aviation 
                        Administration under section 47103.
                  ``(B) Reduction.--In any fiscal year in which the 
                total amount made available for apportionment under 
                paragraph (2) is less than $300,000,000, the Secretary 
                shall reduce, on a prorated basis, the amount to be 
                apportioned under subparagraph (A) and make such 
                reduction available to be apportioned under paragraph 
                (2), so as to apportion under paragraph (2) a minimum 
                of $300,000,000.''.

SEC. 138. REDUCING APPORTIONMENTS.

  Section 47114(f)(1) is amended--
          (1) by striking ``and'' at the end of subparagraph (A);
          (2) in subparagraph (B)--
                  (A) by inserting ``except as provided by subparagraph 
                (C),'' before ``in the case''; and
                  (B) by striking the period at the end and inserting 
                ``; and''; and
          (3) by adding at the end the following:
                  ``(C) in the case of a charge of more than $4.50 
                imposed by the sponsor of an airport enplaning at least 
                one percent of the total number of boardings each year 
                in the United States, 100 percent of the projected 
                revenues from the charge in the fiscal year but not 
                more than 100 percent of the amount that otherwise 
                would be apportioned under this section.''.

SEC. 139. MINIMUM AMOUNT FOR DISCRETIONARY FUND.

  Section 47115(g)(1) is amended by striking ``sum of--'' and all that 
follows through the period at the end of subparagraph (B) and inserting 
``sum of $520,000,000.''.

SEC. 140. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

   Section 47115(j) is amended by striking ``fiscal years 2004 through 
2007'' and inserting ``fiscal years 2008 through 2011''.

SEC. 141. USE OF APPORTIONED AMOUNTS.

   Section 47117(e)(1)(A) is amended--
          (1) in the first sentence--
                  (A) by striking ``35 percent'' and inserting 
                ``$300,000,000'';
                  (B) by striking ``and'' after ``47141,''; and
                  (C) by inserting before the period at the end the 
                following: ``, and for water quality mitigation 
                projects to comply with the Federal Water Pollution 
                Control Act (33 U.S.C. 1251 et. seq.) as approved in an 
                environmental record of decision for an airport 
                development project under this title''; and
          (2) in the second sentence by striking ``such 35 percent 
        requirement is'' and inserting ``the requirements of the 
        preceding sentence are''.

SEC. 142. SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR.

  (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 subtitle 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, is repaid to the Secretary by the 
                private owner.
          ``(3) Treatment of repayments.--Repayments referred to in 
        paragraph (2)(C) shall be treated as a recovery of prior year 
        obligations.''.
  (b) Applicability to Grants.--The amendments made by subsection (a) 
shall apply to grants issued on or after October 1, 1996.

SEC. 143. AIRPORT PRIVATIZATION PILOT PROGRAM.

  (a) Approval Requirements.--Section 47134 is amended in subsections 
(b)(1)(A)(i), (b)(1)(A)(ii), (c)(4)(A), and (c)(4)(B) by striking ``65 
percent'' each place it appears and inserting ``75 percent''.
  (b) Prohibition on Receipt of Funds.--
          (1) Section 47134.--Section 47134 is amended by adding at the 
        end the following:
  ``(n) Prohibition on Receipt of Certain Funds.--An airport receiving 
an exemption under subsection (b) shall be prohibited from receiving 
apportionments under section 47114 or discretionary funds under section 
47115.''.
          (2) Conforming amendments.--Section 47134(g) is amended--
                  (A) in the subsection heading by striking 
                ``Apportionments;'';
                  (B) in paragraph (1) by striking the semicolon at the 
                end and inserting ``; or'';
                  (C) by striking paragraph (2); and
                  (D) by redesignating paragraph (3) as paragraph (2).
  (c) Federal Share of Project Costs.--Section 47109(a) is amended--
          (1) by striking the semicolon at the end of paragraph (3) and 
        inserting ``; and'';
          (2) by striking paragraph (4); and
          (3) by redesignating paragraph (5) as paragraph (4).

SEC. 144. AIRPORT SECURITY PROGRAM.

  Section 47137(g) is amended by striking ``$5,000,000'' and inserting 
``$8,500,000''.

SEC. 145. SUNSET OF PILOT PROGRAM FOR PURCHASE OF AIRPORT DEVELOPMENT 
                    RIGHTS.

  Section 47138 is amended by adding at the end the following:
  ``(f) Sunset.--This section shall not be in effect after September 
30, 2007.''.

SEC. 146. EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND USE PLANNING 
                    AND PROJECTS BY STATE AND LOCAL GOVERNMENTS.

  Section 47141(f) is amended by striking ``September 30, 2007'' and 
inserting ``September 30, 2011''.

SEC. 147. REPEAL OF LIMITATIONS ON METROPOLITAN WASHINGTON AIRPORTS 
                    AUTHORITY.

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

SEC. 148. MIDWAY ISLAND AIRPORT.

  Section 186(d) of the Vision 100--Century of Aviation Reauthorization 
Act (117 Stat. 2518) is amended by striking ``October 1, 2007'' and 
inserting ``October 1, 2011''.

SEC. 149. 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) Update Veterans Preference Definition.--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 by section 101 of title 38) 
        in the armed forces for a period of more than 180 consecutive 
        days, any part of which occurred during the period beginning on 
        September 11, 2001, and ending on the date prescribed by 
        presidential proclamation or by law as the last date of 
        Operation Iraqi Freedom, and who was separated from the armed 
        forces under honorable conditions.''; and
          (2) in paragraph (2) by striking ``veterans and'' and 
        inserting ``veterans, Afghanistan-Iraq war veterans, and''.
  (c) 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; and
          (2) by inserting before subsection (b) (as so redesignated) 
        the following:
  ``(a) Terminal Development Projects.--
          ``(1) In general.--The Secretary 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 paragraphs (3) and (4)(A) of subsection (b) (as 
        redesignated by paragraph (1) of this subsection) by striking 
        ``section 47110(d)'' and inserting ``subsection (a)''; and
          (4) in paragraph (5) of subsection (b) (as redesignated by 
        paragraph (1) of this subsection) by striking ``subsection 
        (b)(1) and (2)'' and inserting ``subsections (c)(1) and 
        (c)(2)'';
          (5) in paragraphs (2)(A), (3), and (4) of subsection (c) (as 
        redesignated by paragraph (1) of this subsection) by striking 
        ``section 47110(d) of this title'' and inserting ``subsection 
        (a)'';
          (6) in paragraph (2)(B) of subsection (c) (as redesignated by 
        paragraph (1) of this subsection) by striking ``section 
        47110(d)'' and inserting ``subsection (a)'';
          (7) in subsection (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).''.
  (d) 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''.
  (e) 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),''.
  (f) Conforming Amendment to Civil Penalty Assessment Authority.--
Section 46301(d)(2) is amended by inserting ``46319,'' after 
``46318,''.
  (g) Other Conforming Amendments.--Sections 40117(a)(3)(B) and 
47108(e)(3) are each amended by striking ``section 47110(d)'' each 
place it appears and inserting ``section 47119(a)''.
  (h) 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))'' .
  (i) Airport Capacity Benchmark Reports.--Section 47175(2) is amended 
by striking ``Airport Capacity Benchmark Report 2001'' and inserting 
``2001 and 2004 Airport Capacity Benchmark Reports or table 1 of the 
Federal Aviation Administration's most recent airport capacity 
benchmark report''.

              TITLE II--AIR TRAFFIC CONTROL MODERNIZATION

         Subtitle A--Next Generation Air Transportation System

SEC. 201. MISSION STATEMENT; SENSE OF CONGRESS.

  (a) Findings.--Congress finds the following:
          (1) The United States faces a great national challenge as the 
        Nation's aviation infrastructure is at a crossroads.
          (2) The demand for aviation services, a critical element of 
        the United States economy, vital in supporting the quality of 
        life of the people of the United States, and critical in 
        support of the Nation's defense and national security, is 
        growing at an ever increasing rate. At the same time, the 
        ability of the United States air transportation system to 
        expand and change to meet this increasing demand is limited.
          (3) The aviation industry accounts for more than 10,000,000 
        jobs in the United States and contributes approximately 
        $900,000,000,000 annually to the United States gross domestic 
        product.
          (4) The United States air transportation system continues to 
        drive economic growth in the United States and will continue to 
        be a major economic driver as air traffic triples over the next 
        20 years.
          (5) The Next Generation Air Transportation System (in this 
        section referred to as the ``NextGen System'') is the system 
        for achieving long-term transformation of the United States air 
        transportation system that focuses on developing and 
        implementing new technologies and that will set the stage for 
        the long-term development of a scalable and more flexible air 
        transportation system without compromising the unprecedented 
        safety record of United States aviation.
          (6) The benefits of the NextGen System, in terms of promoting 
        economic growth and development, are enormous.
          (7) The NextGen System will guide the path of the United 
        States air transportation system in the challenging years 
        ahead.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) modernizing the air transportation system is a national 
        priority and the United States must make a commitment to 
        revitalizing this essential component of the Nation's 
        transportation infrastructure;
          (2) one fundamental requirement for the success of the 
        NextGen System is strong leadership and sufficient resources;
          (3) the Joint Planning and Development Office of the Federal 
        Aviation Administration and the Next Generation Air 
        Transportation System Senior Policy Committee, each established 
        by Congress in 2003, will lead and facilitate this important 
        national mission to ensure that the programs and capabilities 
        of the NextGen System are carefully integrated and aligned;
          (4) Government agencies and industry must work together, 
        carefully integrating and aligning their work to meet the needs 
        of the NextGen System in the development of budgets, programs, 
        planning, and research;
          (5) the Department of Transportation, the Federal Aviation 
        Administration, the Department of Defense, the Department of 
        Homeland Security, the Department of Commerce, and the National 
        Aeronautics and Space Administration must work in cooperation 
        and make transformational improvements to the United States air 
        transportation infrastructure a priority; and
          (6) due to the critical importance of the NextGen System to 
        the economic and national security of the United States, 
        partner departments and agencies must be provided with the 
        resources required to complete the implementation of the 
        NextGen System.

SEC. 202. NEXT GENERATION AIR TRANSPORTATION SYSTEM JOINT PLANNING AND 
                    DEVELOPMENT OFFICE.

  (a) Establishment.--
          (1) Associate administrator for the next generation air 
        transportation system.--Section 709(a) of Vision 100--Century 
        of Aviation Reauthorization Act (49 U.S.C. 40101 note; 117 
        Stat. 2582) is amended--
                  (A) by redesignating paragraphs (2), (3), and (4) as 
                paragraphs (3), (4), and (5), respectively; and
                  (B) by inserting after paragraph (1) the following:
  ``(2) The director of the Office shall be the Associate Administrator 
for the Next Generation Air Transportation System, who shall be 
appointed by the Administrator of the Federal Aviation Administration. 
The Associate Administrator shall report to the Administrator.''.
          (2) 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 ensure that--
          ``(i) 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); and
          ``(ii) 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.''.
          (3) 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, to the maximum extent practicable, shall--
          ``(i) oversee the development of the integrated plan under 
        subsection (a)(3)(A);
          ``(ii) 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; 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 of the Next Generation Air 
Transportation System 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) by striking 
        ``beyond those currently included in the Federal Aviation 
        Administration's operational evolution plan'';
          (2) by striking ``and'' at the end of paragraph (3);
          (3) by striking the period at the end of paragraph (4) 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; and
                  ``(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.''.
  (c) Operational Evolution Partnership.--Section 709(d) of such Act 
(117 Stat. 2584) is amended to read as follows:
  ``(d) Operational Evolution Partnership.--The Administrator of the 
Federal Aviation Administration shall develop and publish annually the 
document known as the `Operational Evolution Partnership', or any 
successor document, that provides a detailed description of how the 
agency is implementing the Next Generation Air Transportation 
System.''.
  (d) Authorization of Appropriations.--Section 709(e) of such Act (117 
Stat. 2584) is amended by striking ``2010'' and inserting ``2011''.

SEC. 203. NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY COMMITTEE.

  (a) Meetings.--Section 710(a) of 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 one 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 the Committee on 
        Transportation and Infrastructure and the Committee on Science 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report summarizing 
        the progress made in carrying out the integrated work plan 
        required by section 709(b)(5) and any changes in that plan.
          ``(2) Contents.--The report shall include--
                  ``(A) a copy of the updated integrated work plan;
                  ``(B) a description of the progress made in carrying 
                out the integrated work plan and any changes in that 
                plan, including any changes based on funding shortfalls 
                and limitations set by the Office of Management and 
                Budget;
                  ``(C) a detailed description of--
                          ``(i) the success or failure of each item of 
                        the integrated work plan for the previous year 
                        and relevant information as to why any 
                        milestone was not met; and
                          ``(ii) the impact of not meeting the 
                        milestone and what actions will be taken in the 
                        future to account for the failure to complete 
                        the milestone; and
                  ``(D) an explanation of any change to future years in 
                the integrated work plan and the reasons for such 
                change.''.

SEC. 204. AUTOMATIC DEPENDENT SURVEILLANCE-BROADCAST SERVICES.

  (a) Report on FAA Program and Schedule.--
          (1) In general.--The Administrator of the Federal Aviation 
        Administration shall prepare a report detailing the program and 
        schedule for integrating automatic dependent surveillance-
        broadcast (in this section referred to as ``ADS-B'') technology 
        into the national airspace system.
          (2) Contents.--The report shall include--
                  (A) a description of segment 1 and segment 2 activity 
                to acquire ADS-B services;
                  (B) a description of plans for implementation of 
                advanced operational procedures and ADS-B air-to-air 
                applications; and
                  (C) a discussion of protections that the 
                Administration will require as part of any contract or 
                program in the event of a contractor's default, 
                bankruptcy, acquisition by another entity, or any other 
                event jeopardizing the uninterrupted provision of ADS-B 
                services.
          (3) Submission to congress.--Not later than 90 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 the report prepared 
        under paragraph (1).
  (b) Requirements of FAA Contracts for ADS-B Services.--Any contract 
entered into by the Administrator with an entity to acquire ADS-B 
services shall contain terms and conditions that--
          (1) require approval by the Administrator before the contract 
        may be assigned to or assumed by another entity, including any 
        successor entity, subsidiary of the contractor, or other 
        corporate entity;
          (2) provide that the assets, equipment, hardware, and 
        software used in the performance of the contract be designated 
        as critical national infrastructure for national security and 
        related purposes;
          (3) require the contractor to provide continued broadcast 
        services for a reasonable period, as determined by the 
        Administrator, until the provision of such services can be 
        transferred to another vendor or to the Government in the event 
        of a termination of the contract;
          (4) require the contractor to provide continued broadcast 
        services for a reasonable period, as determined by the 
        Administrator, until the provision of such services can be 
        transferred to another vendor or to the Government in the event 
        of material nonperformance, as determined by the Administrator; 
        and
          (5) permit the Government to acquire or utilize for a 
        reasonable period, as determined by the Administrator, the 
        assets, equipment, hardware, and software necessary to ensure 
        the continued and uninterrupted provision of ADS-B services and 
        to have ready access to such assets, equipment, hardware, and 
        software through its own personnel, agents, or others, if the 
        Administrator provides reasonable compensation for such 
        acquisition or utilization.
  (c) 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 contract 
        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 program risks are being 
                managed;
                  (B) an assessment of expected benefits attributable 
                to the deployment of ADS-B services, including the 
                implementation of advanced operational procedures and 
                air-to-air applications as well as to the extent to 
                which ground radar will be retained;
                  (C) 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;
                  (D) 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;
                  (E) an assessment of whether security issues are 
                being adequately addressed in the overall design and 
                implementation of the ADS-B system; and
                  (F) 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 
        periodically, on at least an annual basis, 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 subsection.

SEC. 205. INCLUSION OF STAKEHOLDERS IN AIR TRAFFIC CONTROL 
                    MODERNIZATION PROJECTS.

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall establish a process for including in the planning, 
development, and deployment of air traffic control modernization 
projects (including the Next Generation Air Transportation System) and 
collaborating with qualified employees selected by each exclusive 
collective bargaining representative of employees of the Administration 
who are likely to be impacted by such planning, development, and 
deployment.
  (b) Participation.--
          (1) Bargaining obligations and rights.--Participation in the 
        process described in subsection (a) shall not be construed as a 
        waiver of any bargaining obligations or rights under section 
        40122(a)(1) or 40122(g)(2)(C) of title 49, United States Code.
          (2) Capacity and compensation.--Exclusive collective 
        bargaining representatives and selected employees participating 
        in the process described in subsection (a) shall--
                  (A) serve in a collaborative and advisory capacity; 
                and
                  (B) receive appropriate travel and per diem expenses 
                in accordance with the travel policies of the 
                Administration in addition to any regular compensation 
                and benefits.
  (c) Report.--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 implementation of this section.

SEC. 206. GAO REVIEW OF CHALLENGES ASSOCIATED WITH TRANSFORMING TO THE 
                    NEXT GENERATION AIR TRANSPORTATION SYSTEM.

  (a) In General.--The Comptroller General shall conduct a review of 
the progress and challenges associated with transforming the Nation's 
air traffic control system into the Next Generation Air Transportation 
System (in this section referred to as the ``NextGen System'').
  (b) Review.--The review shall include the following:
          (1) An evaluation of the continued implementation and 
        institutionalization of the processes that are key to the 
        ability of the Air Traffic Organization to effectively maintain 
        management structures and systems acquisitions procedures 
        utilized under the current air traffic control modernization 
        program as a basis for the NextGen System.
          (2) An assessment of the progress and challenges associated 
        with collaboration and contributions of the partner agencies 
        working with the Joint Planning and Development Office of the 
        Federal Aviation Administration (in this section referred to as 
        the ``JPDO'') in planning and implementing the NextGen System.
          (3) The progress and challenges associated with coordinating 
        government and industry stakeholders in activities relating to 
        the NextGen System, including an assessment of the 
        contributions of the NextGen Institute.
          (4) An assessment of planning and implementation of the 
        NextGen System against established schedules, milestones, and 
        budgets.
          (5) An evaluation of the recently modified organizational 
        structure of the JPDO.
          (6) An examination of transition planning by the Air Traffic 
        Organization and the JPDO.
          (7) Any other matters or aspects of planning and coordination 
        of the NextGen System by the Federal Aviation Administration 
        and the JPDO that the Comptroller General determines 
        appropriate.
  (c) Reports.--
          (1) Report to congress on priorities.--Not later than one 
        year after the date of enactment of this Act, the Comptroller 
        General shall determine the priority of topics to be reviewed 
        under this section and report such priorities to the Committee 
        on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate.
          (2) Periodic reports to congress on results of the review.--
        The Comptroller General shall periodically submit to the 
        committees referred to in paragraph (1) a report on the results 
        of the review conducted under this section.

SEC. 207. GAO REVIEW OF NEXT GENERATION AIR TRANSPORTATION SYSTEM 
                    ACQUISITION AND PROCEDURES DEVELOPMENT.

  (a) Study.--The Comptroller General shall conduct a review of the 
progress made and challenges related to the acquisition of designated 
technologies and the development of procedures for the Next Generation 
Air Transportation System (in this section referred to as the ``NextGen 
System'').
  (b) Specific Systems Review.--The review shall include, at a minimum, 
an examination of the acquisition costs, schedule, and other relevant 
considerations for the following systems:
          (1) En Route Automation Modernization (ERAM).
          (2) Standard Terminal Automation Replacement System/Common 
        Automated Radar Terminal System (STARS/CARTS).
          (3) Automatic Dependent Surveillance-Broadcast (ADS-B).
          (4) System Wide Information Management (SWIM).
          (5) Traffic Flow Management Modernization (TFM-M).
  (c) Review.--The review shall include, at a minimum, an assessment of 
the progress and challenges related to the development of standards, 
regulations, and procedures that will be necessary to implement the 
NextGen System, including required navigation performance, area 
navigation, the airspace management program, and other programs and 
procedures that the Comptroller General identifies as relevant to the 
transformation of the air traffic system.
  (d) Periodic Reports to Congress on Results of the Review.--The 
Comptroller General shall periodically 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.

SEC. 208. DOT INSPECTOR GENERAL REVIEW OF OPERATIONAL AND APPROACH 
                    PROCEDURES BY A THIRD PARTY.

  (a) Review.--The Inspector General of the Department of 
Transportation shall conduct a review regarding the effectiveness of 
the oversight activities conducted by the Federal Aviation 
Administration in connection with any agreement with or delegation of 
authority to a third party for the development of flight procedures for 
the national airspace system.
  (b) Assessments.--The Inspector General shall include, at a minimum, 
in the review--
          (1) an assessment of the extent to which the Federal Aviation 
        Administration is relying or intends to rely on a third party 
        for the development of new procedures and a determination of 
        whether the Administration has established sufficient 
        mechanisms and staffing to provide safety oversight of a third 
        party; and
          (2) an assessment regarding whether the Administration has 
        sufficient existing personnel and technical resources or 
        mechanisms to develop such flight procedures in a safe and 
        efficient manner to meet the demands of the national airspace 
        system without the use of third party resources.
  (c) Report.--Not later than one 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. 209. EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR NEXT GENERATION 
                    AIR TRANSPORTATION SYSTEM.

  (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 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 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) include judgments on 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 one year after the date of enactment of 
this Act, the Administrator shall submit to Congress a report 
containing the results of the review conducted pursuant to subsection 
(a).

SEC. 210. NEXTGEN TECHNOLOGY TESTBED.

  Of amounts appropriated under section 48101(a) of title 49, United 
States Code, the Administrator of the Federal Aviation Administration 
shall use such sums as may be necessary for each of the fiscal years 
2008 through 2011 to contribute to the establishment by a public-
private partnership (including a university component with significant 
aviation expertise in air traffic management, simulation, meteorology, 
and engineering and aviation business) an airport-based testing site 
for existing Next Generation Air Transport System technologies. The 
Administrator shall ensure that next generation air traffic control 
integrated systems developed by private industries are installed at the 
site for demonstration, operational research, and evaluation by the 
Administration. The testing site shall serve a mix of general aviation 
and commercial traffic.

                       Subtitle B--Miscellaneous

SEC. 211. 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. 212. 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 inserting the 
        following:
                  ``(B) runway lighting and airport surface visual and 
                other navigation aids;
                  ``(C) 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;'';
          (3) 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
          (4) by adding at the end the following:
                  ``(F) buildings, equipment, and systems dedicated to 
                the national airspace system.''.

SEC. 213. IMPROVED MANAGEMENT OF PROPERTY INVENTORY.

  Section 40110(a)(2) is amended by striking ``compensation'' and 
inserting ``compensation, and the amount received shall be credited as 
an offsetting collection to the account from which the amount was 
expended and shall remain available until expended''.

SEC. 214. CLARIFICATION TO ACQUISITION REFORM AUTHORITY.

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

SEC. 215. ASSISTANCE TO FOREIGN AVIATION AUTHORITIES.

  Section 40113(e) is amended--
          (1) in paragraph (1)--
                  (A) by inserting ``public and private'' before 
                ``foreign aviation authorities''; and
                  (B) by striking the period at the end of the first 
                sentence and inserting ``or efficiency. The 
                Administrator may participate in, and submit offers in 
                response to, competitions to provide such services and 
                may contract with foreign aviation authorities to 
                provide such services consistent with section 
                106(l)(6). Notwithstanding any other provision of law 
                or policy, the Administrator may accept payments 
                received under this subsection in arrears.''; and
          (2) in paragraph (3) by striking ``credited'' and all that 
        follows through the period at the end and inserting ``credited 
        as an offsetting collection to the account from which the 
        expenses were incurred in providing such services and shall 
        remain available until expended.''.

SEC. 216. FRONT LINE MANAGER STAFFING.

   (a) Study.--Not later than 90 days after the date of enactment of 
this Act, the Administrator of the Federal Aviation Administration 
shall initiate a study on front line manager staffing requirements in 
air traffic control facilities.
  (b) Considerations.--In conducting the study, the Administrator shall 
take into consideration--
          (1) the number of supervisory positions of operation 
        requiring watch coverage in each air traffic control facility;
          (2) coverage requirements in relation to traffic demand;
          (3) facility type;
          (4) complexity of traffic and managerial responsibilities;
          (5) proficiency and training requirements; and
          (6) such other factors as the Administrator considers 
        appropriate.
  (c) Determinations.--The Administrator shall transmit any 
determinations made as a result of the study to the Chief Operating 
Officer for the air traffic control system.
  (d) Report.--Not later than one 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 and a description of any 
determinations submitted to the Chief Operating Officer under 
subsection (c).

SEC. 217. FLIGHT SERVICE STATIONS.

  (a) Establishment of Monitoring System.--Not later than 60 days after 
the date of enactment of this Act, the Administrator of the Federal 
Aviation Administration shall develop and implement a monitoring system 
for flight service specialist staffing and training under service 
contracts for flight service stations.
  (b) Components.--At a minimum, the monitoring system shall include 
mechanisms to monitor--
          (1) flight specialist staffing plans for individual 
        facilities;
          (2) actual staffing levels for individual facilities;
          (3) the initial and recurrent certification and training of 
        flight service specialists on the safety, operational, and 
        technological aspects of flight services, including any 
        certification and training necessary to meet user demand; and
          (4) system outages, excessive hold times, dropped calls, poor 
        quality briefings, and any other safety or customer service 
        issues under a contract for flight service station services.
  (c) Report to Congress.--Not later than 90 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 containing--
          (1) a description of monitoring system;
          (2) if the Administrator determines that contractual changes 
        or corrective actions are required for the Administration to 
        ensure that the vendor under a contract for flight service 
        station services provides safe and high quality service to 
        consumers, a description of the changes or actions required; 
        and
          (3) a description of the contingency plans of the 
        Administrator and the protections that the Administrator will 
        have in place to provide uninterrupted flight service station 
        services in the event of--
                  (A) material non-performance of the contract;
                  (B) a vendor's default, bankruptcy, or acquisition by 
                another entity; or
                  (C) any other event that could jeopardize the 
                uninterrupted provision of flight service station 
                services.

                           TITLE III--SAFETY

                     Subtitle A--General Provisions

SEC. 301. AGE STANDARDS FOR PILOTS.

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

``Sec. 44729. Age standards for pilots

  ``(a) In General.--Subject to the limitation in subsection (c), a 
pilot may serve in multicrew covered operations until attaining 65 
years of age.
  ``(b) Covered Operations Defined.--In this section, the term `covered 
operations' means operations under part 121 of title 14, Code of 
Federal Regulations.
  ``(c) Limitation for International Flights.--
          ``(1) Applicability of icao standard.--A pilot who has 
        attained 60 years of age may serve as pilot-in-command in 
        covered operations between the United States and another 
        country only if there is another pilot in the flight deck crew 
        who has not yet attained 60 years of age.
          ``(2) Sunset of limitation.--Paragraph (1) shall cease to be 
        effective on such date as the Convention on International Civil 
        Aviation provides that a pilot who has attained 60 years of age 
        may serve as pilot-in-command in international commercial 
        operations without regard to whether there is another pilot in 
        the flight deck crew who has not attained age 60.
  ``(d) Sunset of Age-60 Retirement Rule.--On and after the date of 
enactment of this section, section 121.383(c) of title 14, Code of 
Federal Regulations, shall cease to be effective.
  ``(e) Applicability.--
          ``(1) Nonretroactivity.--No person who has attained 60 years 
        of age before the date of enactment of this section may serve 
        as a pilot for an air carrier engaged in covered operations 
        unless--
                  ``(A) such person is in the employment of that air 
                carrier in such operations on such date of enactment as 
                a required flight deck crew member; or
                  ``(B) such person is newly hired by an air carrier as 
                a pilot on or after such date of enactment without 
                credit for prior seniority or prior longevity for 
                benefits or other terms related to length of service 
                prior to the date of rehire under any labor agreement 
                or employment policies of the air carrier.
          ``(2) Protection for compliance.--An action taken in 
        conformance with this section, taken in conformance with a 
        regulation issued to carry out this section, or taken prior to 
        the date of enactment of this section in conformance with 
        section 121.383(c) of title 14, Code of Federal Regulations (as 
        in effect before such date of enactment), may not serve as a 
        basis for liability or relief in a proceeding before any court 
        or agency of the United States or of any State or locality.
  ``(f) Amendments to Labor Agreements and Benefit Plans.--Any 
amendment to a labor agreement or benefit plan of an air carrier that 
is required to conform with the requirements of this section or a 
regulation issued to carry out this section, and is applicable to 
pilots represented for collective bargaining, shall be made by 
agreement of the air carrier and the designated bargaining 
representative of the pilots of the air carrier.
  ``(g) Medical Standards and Records.--
          ``(1) Medical examinations and standards.--Except as provided 
        by paragraph (2), a person serving as a pilot for an air 
        carrier engaged in covered operations shall not be subject to 
        different medical standards, or different, greater, or more 
        frequent medical examinations, on account of age unless the 
        Secretary determines (based on data received or studies 
        published after the date of enactment of this section) that 
        different medical standards, or different, greater, or more 
        frequent medical examinations, are needed to ensure an adequate 
        level of safety in flight.
          ``(2) Duration of first-class medical certificate.--No person 
        who has attained 60 years of age may serve as a pilot of an air 
        carrier engaged in covered operations unless the person has a 
        first-class medical certificate. Such a certificate shall 
        expire on the last day of the 6-month period following the date 
        of examination shown on the certificate.
  ``(h) Safety.--
          ``(1) Training.--Each air carrier engaged in covered 
        operations shall continue to use pilot training and 
        qualification programs approved by the Federal Aviation 
        Administration, with specific emphasis on initial and recurrent 
        training and qualification of pilots who have attained 60 years 
        of age, to ensure continued acceptable levels of pilot skill 
        and judgment.
          ``(2) Line evaluations.--Not later than 6 months after the 
        date of enactment of this section, and every 6 months 
        thereafter, an air carrier engaged in covered operations shall 
        evaluate the performance of each pilot of the air carrier who 
        has attained 60 years of age through a line check of such 
        pilot. Notwithstanding the preceding sentence, an air carrier 
        shall not be required to conduct for a 6-month period a line 
        check under this paragraph of a pilot serving as second in 
        command if the pilot has undergone a regularly scheduled 
        simulator evaluation during that period.
          ``(3) GAO report.--Not later than 24 months after the date of 
        enactment of this section, 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 concerning 
        the effect, if any, on aviation safety of the modification to 
        pilot age standards made by subsection (a).''.
  (b) Clerical Amendment.--The analysis for such chapter is amended by 
adding at the end the following:

``44729. Age standards for pilots.''.

SEC. 302. JUDICIAL REVIEW OF DENIAL OF AIRMAN CERTIFICATES.

  (a) Judicial Review of NTSB Decisions.--Section 44703(d) is amended 
by adding at the end the following:
          ``(3) Judicial review.--A person 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. 303. RELEASE OF DATA RELATING TO ABANDONED TYPE CERTIFICATES AND 
                    SUPPLEMENTAL TYPE CERTIFICATES.

  (a) Release of Data.--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 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;
                          ``(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 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.''.
  (b) Design Organization Certificates.--Section 44704(e)(1) is amended 
by striking ``Beginning 7 years after the date of enactment of this 
subsection,'' and inserting ``Beginning January 1, 2013,''.

SEC. 304. INSPECTION OF FOREIGN REPAIR STATIONS.

  (a) In General.--Chapter 447 (as amended by section 301 of this Act) 
is further amended by adding at the end the following:

``Sec. 44730. Inspection of foreign repair stations

  ``Not later than one year after the date of enactment of this 
section, and annually thereafter, the Administrator of the Federal 
Aviation Administration shall submit to Congress a certification that 
each foreign repair station that is certified by the Administrator 
under part 145 of title 14, Code of Federal Regulations, and performs 
work on air carrier aircraft or components has been inspected by safety 
inspectors of the Administration not fewer than 2 times in the 
preceding calendar year.''.
  (b) Clerical Amendment.--The analysis for such chapter is amended by 
adding at the end the following:

``44730. Inspection of foreign repair stations.''.

SEC. 305. RUNWAY INCURSION REDUCTION.

  Not later than December 31, 2008, the Administrator of the Federal 
Aviation Administration shall submit to Congress a report containing a 
plan for the installation and deployment of systems the Administration 
is installing to alert controllers or flight crews, or both, of 
potential runway incursions. The plan shall be integrated into the 
annual Operational Evolution Partnership document of the Administration 
or any successor document.

SEC. 306. IMPROVED PILOT LICENSES.

  (a) In General.--Not later than 6 months after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall begin to issue improved pilot licenses consistent with the 
requirements of title 49, United States Code, and title 14, Code of 
Federal Regulations.
  (b) Requirements.--Improved pilots licenses issued under subsection 
(a) shall--
          (1) be resistant to tampering, alteration, and 
        counterfeiting;
          (2) include a photograph of the individual to whom the 
        license is issued; and
          (3) be capable of accommodating a digital photograph, a 
        biometric identifier, or any other unique identifier that the 
        Administrator considers necessary.
  (c) Tampering.--To the extent practical, the Administrator shall 
develop methods to determine or reveal whether any component or 
security feature of a license issued under subsection (a) has been 
tampered, altered, or counterfeited.
  (d) Use of Designees.--The Administrator may use designees to carry 
out subsection (a) to the extent feasible in order to minimize the 
burdens on pilots.
  (e) Report.--Not later than 9 months after the date of enactment of 
this Act and every 6 months thereafter until September 30, 2011, 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.

SEC. 307. AIRCRAFT FUEL TANK SAFETY IMPROVEMENT.

  Not later than December 31, 2007, the Administrator of the Federal 
Aviation Administration shall issue a final rule regarding the 
reduction of fuel tank flammability in transport category aircraft.

SEC. 308. FLIGHT CREW FATIGUE.

  (a) In General.--Not later than 3 months after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall conclude arrangements with the National Academy of Sciences for a 
study of pilot fatigue.
  (b) Study.--The study shall include consideration of--
          (1) research on pilot fatigue, sleep, and circadian rhythms;
          (2) sleep and rest requirements of pilots recommended by the 
        National Aeronautics and Space Administration and the National 
        Transportation Safety Board; and
          (3) Federal Aviation Administration and international 
        standards regarding flight limitations and rest for pilots.
  (c) Report.--Not later than 18 months after initiating the study, the 
National Academy of Sciences shall submit to the Administrator a report 
containing its findings and recommendations regarding the study under 
subsections (a) and (b), including recommendations with respect to 
Federal Aviation Administration regulations governing flight time 
limitations and rest requirements for pilots.
  (d) Rulemaking.--After the Administrator receives the report of the 
National Academy of Sciences, the Administrator shall consider the 
findings in the report and update as appropriate based on scientific 
data Federal Aviation Administration regulations governing flight time 
limitations and rest requirements for pilots.
  (e) Implementation of Flight Attendant Fatigue Study 
Recommendations.--Not later than 60 days after the date of enactment of 
this Act, the Administrator shall initiate a process for the Civil 
Aerospace Medical Institute to carry out its recommendations for 
further study of the issue of flight attendant fatigue and to submit 
not later than March 31, 2009, to Congress a report on such process, 
including an analysis of the following:
          (1) A survey of field operations of flight attendants.
          (2) A study of incident reports regarding flight attendant 
        fatigue.
          (3) Field research on the effects of such fatigue.
          (4) A validation of models for assessing flight attendant 
        fatigue, international policies, and practices regarding flight 
        limitations and rest of flight attendants, and the potential 
        benefits of training flight attendants regarding such fatigue.
  (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as necessary to carry out this section.

SEC. 309. OSHA STANDARDS.

  (a) In General.--The Administrator of the FAA shall--
          (1) not later than 6 months after the date of enactment of 
        this Act, establish milestones, in consultation with the 
        Administrator of the OSHA, to complete work begun under the 
        August 2000 memorandum of understanding between the FAA and 
        OSHA and to address issues needing further action identified in 
        the joint report of the FAA and OSHA in December 2000; and
          (2) not later than 24 months after the date of enactment of 
        this Act, issue a policy statement to set forth the 
        circumstances in which requirements of OSHA may be applied to 
        crewmembers while working in an aircraft cabin.
  (b) Contents of Policy Statement.--
          (1) Establishment of coordinating body.--The policy statement 
        to be developed under subsection (a)(2) shall provide for the 
        establishment of a coordinating body, similar to the aviation 
        safety and health joint team established pursuant to the August 
        2000 memorandum of understanding between the FAA and OSHA, that 
        includes representatives designated by the FAA and OSHA--
                  (A) to examine the applicability of current and 
                proposed regulations of OSHA for application and 
                enforcement by the FAA;
                  (B) to recommend policies for facilitating the 
                training of inspectors of the FAA; and
                  (C) to make recommendations that will govern the 
                inspection and enforcement by the FAA of occupational 
                safety and health standards on board an aircraft 
                providing air transportation.
          (2) FAA standards.--The policy statement to be developed 
        under subsection (a)(2) shall ensure that standards adopted by 
        the FAA set forth clearly--
                  (A) the circumstances under which an employer is 
                required to take action to address occupational safety 
                and health hazards;
                  (B) the measures required of an employer under the 
                standard; and
                  (C) the compliance obligations of an employer under 
                the standard.
  (c) Report to Congress.--Not later than 6 months after the date of 
enactment of this Act, the Administrator of the FAA shall submit to 
Congress a report describing the milestones established under 
subsection (a)(1).
  (d) Definitions.--In this section, the following definitions apply:
          (1) FAA.--The term ``FAA'' means the Federal Aviation 
        Administration.
          (2) OSHA.--The term ``OSHA'' means the ``Occupational Safety 
        and Health Administration''.

SEC. 310. AIRCRAFT SURVEILLANCE IN MOUNTAINOUS AREAS.

   (a) Establishment.--The Administrator of the Federal Aviation 
Administration may establish a pilot program to improve safety and 
efficiency by providing surveillance for aircraft flying outside of 
radar coverage in mountainous areas.
  (b) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out this section. 
Such sums shall remain available until expended.

SEC. 311. OFF-AIRPORT, LOW-ALTITUDE AIRCRAFT WEATHER OBSERVATION 
                    TECHNOLOGY.

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

                 Subtitle B--Unmanned Aircraft Systems

SEC. 321. COMMERCIAL UNMANNED AIRCRAFT SYSTEMS INTEGRATION PLAN.

  (a) Integration Plan.--
          (1) Comprehensive plan.--Not later than 9 months after the 
        date of enactment of this Act, the Secretary, in consultation 
        with representatives of the aviation industry, shall develop a 
        comprehensive plan to safely integrate commercial unmanned 
        aircraft systems into the national airspace system.
          (2) Minimum requirements.--In developing the plan under 
        paragraph (1), the Secretary shall, at a minimum--
                  (A) review technologies and research that will assist 
                in facilitating the safe integration of commercial 
                unmanned aircraft systems into the national airspace 
                system;
                  (B) provide recommendations for the rulemaking to be 
                conducted under subsection (b) to--
                          (i) define the acceptable standards for 
                        operations and certification of commercial 
                        unmanned aircraft systems;
                          (ii) ensure that any commercial unmanned 
                        aircraft system includes a detect, sense, and 
                        avoid capability; and
                          (iii) develop standards and requirements for 
                        the operator or programmer of a commercial 
                        unmanned aircraft system, including standards 
                        and requirements for registration and 
                        licensing;
                  (C) recommend how best to enhance the technologies 
                and subsystems necessary to effect the safe and routine 
                operations of commercial unmanned aircraft systems in 
                the national airspace system; and
                  (D) recommend how a phased-in approach to the 
                integration of commercial unmanned aircraft systems 
                into the national airspace system can best be achieved 
                and a timeline upon which such a phase-in shall occur.
          (3) Deadline.--The plan to be developed under paragraph (1) 
        shall provide for the safe integration of commercial unmanned 
        aircraft systems into the national airspace system as soon as 
        possible, but not later than September 30, 2012.
          (4) Report to congress.--Not later than one year after the 
        date of enactment of this Act, 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 copy of the plan developed under 
        paragraph (1).
  (b) Rulemaking.--Not later than 18 months after the date on which the 
integration plan is submitted to Congress under subsection (a)(4), the 
Administrator of the Federal Aviation Administration shall publish in 
the Federal Register a notice of proposed rulemaking to implement the 
recommendations of the integration plan.
  (c) Authorization.--There are authorized to be appropriated such sums 
as may be necessary to carry out this section.

SEC. 322. SPECIAL RULES FOR CERTAIN UNMANNED AIRCRAFT SYSTEMS.

  (a) In General.--Notwithstanding the requirements of sections 321 and 
323, and not later than 6 months after the date of enactment of this 
Act, the Secretary 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 321 or the guidance 
required by section 323.
  (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 population 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 authorization or an 
        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. 323. PUBLIC UNMANNED AIRCRAFT SYSTEMS.

  Not later than 9 months after the date of enactment of this Act, the 
Secretary 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; and
          (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.

SEC. 324. DEFINITIONS.

  In this subtitle, the following definitions apply:
          (1) Certificate of authorization.--The term ``certificate of 
        authorization'' means a Federal Aviation Administration grant 
        of approval for a specific flight operation.
          (2) Detect, sense, and avoid capability.--The term ``detect, 
        sense, and avoid capability'' means the technical capability to 
        perform separation assurance and collision avoidance, as 
        defined by the Federal Aviation Administration.
          (3) 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 by section 40102 of 
        title 49, United States Code.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Transportation.
          (5) Test range.--The term ``test range'' means a defined 
        geographic area where research and development are conducted.
          (6) 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.
          (7) Unmanned aircraft system.--The term ``unmanned aircraft 
        system'' means an unmanned aircraft and associated elements 
        (such as communication links and a ground control station) that 
        are required to operate safely and efficiently in the national 
        airspace system.

                   TITLE IV--AIR SERVICE IMPROVEMENTS

SEC. 401. 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 under 
        subsection (b) shall be subject to the requirement of paragraph 
        (1).
          ``(3) Contents.--A monthly report filed by an air carrier 
        under paragraph (1) shall include, at a minimum, the following 
        information:
                  ``(A) For a diverted flight--
                          ``(i) the flight number of the diverted 
                        flight;
                          ``(ii) the scheduled destination of the 
                        flight;
                          ``(iii) the date and time of the flight;
                          ``(iv) the airport to which the flight was 
                        diverted;
                          ``(v) wheels-on time at the diverted airport;
                          ``(vi) the time, if any, passengers deplaned 
                        the aircraft at the diverted airport; and
                          ``(vii) if the flight arrives at the 
                        scheduled destination airport--
                                  ``(I) the gate-departure time at the 
                                diverted airport;
                                  ``(II) the wheels-off time at the 
                                diverted airport;
                                  ``(III) the wheels-on time at the 
                                scheduled arrival airport; and
                                  ``(IV) the gate arrival time at the 
                                scheduled arrival airport.
                  ``(B) For flights cancelled after gate departure--
                          ``(i) the flight number of the cancelled 
                        flight;
                          ``(ii) the scheduled origin and destination 
                        airports of the cancelled flight;
                          ``(iii) the date and time of the cancelled 
                        flight;
                          ``(iv) the gate-departure time of the 
                        cancelled flight; and
                          ``(v) the time the aircraft returned to the 
                        gate.
          ``(4) Publication.--The Secretary shall compile the 
        information provided in the monthly reports filed pursuant to 
        paragraph (1) in a single monthly report and publish such 
        report on the Web site of the Department of Transportation.''.
  (b) Effective Date.--The Secretary of Transportation shall require 
monthly reports pursuant to the amendment made by subsection (a) 
beginning not later than 90 days after the date of enactment of this 
Act.

SEC. 402. FLIGHT OPERATIONS AT REAGAN NATIONAL AIRPORT.

  (a) Beyond Perimeter Exemptions.--Section 41718(a) is amended by 
striking ``24'' and inserting ``34''.
  (b) Limitations.--Section 41718(c)(2) is amended by striking ``3 
operations'' and inserting ``5 operations''.
  (c) Allocation of Beyond-Perimeter Exemptions.--Section 41718(c) is 
amended --
          (1) by redesignating paragraphs (3) and (4) as (4) and (5), 
        respectively; and
          (2) by inserting after paragraph (2) the following:
          ``(3) Slots.--The Administrator of the Federal Aviation 
        Administration shall reduce the hourly air carrier slot quota 
        for Ronald Reagan Washington National Airport in section 
        93.123(a) of title 14, Code of Federal Regulations, by a total 
        of 10 slots that are available for allocation. Such reductions 
        shall be taken in the 6:00 a.m., 10:00 p.m., or 11:00 p.m. 
        hours, as determined by the Administrator, in order to grant 
        exemptions under subsection (a).''.
  (d) Scheduling Priority.--Section 41718 is amended--
          (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
          (2) by inserting after subsection (d) the following:
  ``(e) Scheduling Priority.--Operations conducted by new entrant air 
carriers and limited incumbent air carriers shall be afforded a 
scheduling priority over operations conducted by other air carriers 
granted exemptions pursuant to this section, with the highest 
scheduling priority to be afforded to beyond-perimeter operations 
conducted by new entrant air carriers and limited incumbent air 
carriers.''.

SEC. 403. EAS CONTRACT GUIDELINES.

  Section 41737(a)(1) is amended--
          (1) by striking ``and'' at the end of subparagraph (B);
          (2) in subparagraph (C) by striking ``provided.'' and 
        inserting ``provided;''; and
          (3) by adding at the end the following:
          ``(D) include provisions under which the Secretary may 
        encourage an air carrier to improve air service for which 
        compensation is being paid under this subchapter by 
        incorporating financial incentives in an essential air service 
        contract based on specified performance goals; 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.''.

SEC. 404. ESSENTIAL AIR SERVICE REFORM.

  (a) Authorization of Appropriations.--Section 41742(a)(2) is amended 
by striking ``$77,000,000'' and inserting ``$83,000,000''.
  (b) Distribution of Excess Funds.--
          (1) In general.--Section 41742(a) is amended by adding at the 
        end the following:
          ``(4) Distribution of excess funds.--Of the funds, if any, 
        credited to the account established under section 45303 in a 
        fiscal year that exceed the $50,000,000 made available for such 
        fiscal year under paragraph (1)--
                  ``(A) one-half shall be made available immediately 
                for obligation and expenditure to carry out section 
                41743; and
                  ``(B) one-half shall be made available immediately 
                for obligation and expenditure to carry out subsection 
                (b).''.
          (2) Conforming amendment.--Section 41742(b) is amended--
                  (A) in the first sentence by striking ``moneys 
                credited'' and all that follows before ``shall be 
                used'' and inserting ``amounts made available under 
                subsection (a)(4)(B)''; and
                  (B) in the second sentence by striking ``any amounts 
                from those fees'' and inserting ``any of such 
                amounts''.

SEC. 405. 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 improve air 
                service.''.
  (b) Extension of Authorization.--Section 41743(e)(2) is amended by 
striking ``2008'' and inserting ``2011''.

SEC. 406. AIR PASSENGER SERVICE IMPROVEMENTS.

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

           ``CHAPTER 423--AIR PASSENGER 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 air carrier 
providing covered air transportation at a large hub airport or medium 
hub airport and each operator of a large hub airport or medium hub 
airport shall submit to the Secretary of Transportation for review and 
approval an emergency contingency plan in accordance with the 
requirements of this section.
  ``(b) Covered Air Transportation Defined.--In this section, the term 
`covered air transportation' means scheduled passenger air 
transportation provided by an air carrier using aircraft with more than 
60 seats.
  ``(c) Air Carrier Plans.--
          ``(1) Plans for individual airports.--An air carrier shall 
        submit an emergency contingency plan under subsection (a) for--
                  ``(A) each large hub airport and medium hub airport 
                at which the carrier provides covered air 
                transportation; and
                  ``(B) each large hub airport and medium hub airport 
                at which the carrier has flights for which it 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 air carrier will--
                  ``(A) provide food, water, restroom facilities, cabin 
                ventilation, and access to medical treatment for 
                passengers onboard an aircraft at the airport that is 
                on the ground for an extended period of time without 
                access to the terminal; and
                  ``(B) share facilities and make gates available at 
                the airport in an emergency.
  ``(d) Airport Plans.--An emergency contingency plan submitted by an 
airport operator under subsection (a) shall contain a description of 
how the airport operator, to the maximum extent practicable, will 
provide for the sharing of facilities and make gates available at the 
airport in an emergency.
  ``(e) Updates.--
          ``(1) Air carriers.--An air carrier shall update the 
        emergency contingency plan submitted by the air 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 the 
        emergency contingency plan submitted by the airport operator 
        under subsection (a) every 5 years and submit the update to the 
        Secretary for review and approval.
  ``(f) Approval.--The Secretary shall review and approve emergency 
contingency plans submitted under subsection (a) and updates submitted 
under subsection (e) to ensure that the plans and updates will 
effectively address emergencies and provide for the health and safety 
of passengers.

``Sec. 42302. Consumer complaints

  ``(a) Consumer Complaints Hotline Telephone Number.--The Secretary of 
Transportation shall establish a consumer complaints hotline telephone 
number for the use of passengers in air transportation.
  ``(b) Public Notice.--The Secretary shall notify the public of the 
telephone number established under subsection (a).
  ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section. 
Such sums shall remain available until expended.

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

  ``No air carrier, foreign air carrier, or ticket agent may sell in 
the United States a ticket for air transportation for a flight on which 
an insecticide is planned to be used in the aircraft while passengers 
are on board the aircraft unless the air carrier, foreign air carrier, 
or ticket agent selling the ticket first informs the person purchasing 
the ticket of the planned use of the insecticide, including the name of 
the insecticide.''.
  (b) Clerical Amendment.--The analysis for subtitle VII is amended by 
inserting after the item relating to chapter 421 the following:

``423. Air Passenger Service Improvements...................   42301''.
  (c) Penalties.--Section 46301 is amended in subsections (a)(1)(A) and 
(c)(1)(A) by inserting ``chapter 423,'' after ``chapter 421,''.
  (d) Applicability of Requirements.--Except as otherwise specifically 
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.

SEC. 407. 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. 408. EXTENSION OF COMPETITIVE ACCESS REPORTS.

  Section 47107(s)(3) is amended by striking ``2008'' and inserting 
``2012''.

SEC. 409. CONTRACT TOWER PROGRAM.

  (a) Cost-Benefit Requirement.--Section 47124(b) is amended--
          (1) by striking ``(1) The Secretary'' and inserting the 
        following:
          ``(1) Contract tower program.--
                  ``(A) Continuation and extension.--The Secretary'';
          (2) by adding at the end of paragraph (1) 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
          (3) by striking ``(2) The Secretary'' and inserting the 
        following:
          ``(2) General authority.--The Secretary''.
  (b) Contract Air Traffic Control Tower Cost-Sharing Program.--
          (1) Funding.--Section 47124(b)(3)(E) is amended--
                  (A) by striking ``and''; and
                  (B) by inserting ``, $8,500,000 for fiscal year 2008, 
                $9,000,000 for fiscal year 2009, $9,500,000 for fiscal 
                year 2010, and $10,000,000 for fiscal year 2011'' after 
                ``2007''.
          (2) Use of excess funds.--Section 47124(b)(3) is amended--
                  (A) by redesignating subparagraph (E) (as amended by 
                paragraph (1) of this subsection) as subparagraph (F); 
                and
                  (B) by inserting after subparagraph (D) the 
                following:
                  ``(E) Use of excess funds.--If the Secretary finds 
                that all or part of an amount made available under this 
                subparagraph is not required during a fiscal year to 
                carry out this paragraph, the Secretary may use, during 
                such fiscal year, the amount not so required to carry 
                out the program continued under paragraph (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 safety assessments of air traffic control towers 
that receive funding under this section.''.

SEC. 410. AIRFARES FOR MEMBERS OF THE ARMED FORCES.

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

SEC. 411. MEDICAL OXYGEN AND PORTABLE RESPIRATORY ASSISTIVE DEVICES.

  Not later than December 31, 2007, the Secretary of Transportation 
shall issue a final rule regarding the carriage and use of passenger-
owned portable electronic respiratory assistive devices and carrier-
supplied medical oxygen devices aboard commercial flights to improve 
accommodations in air travel for passengers with respiratory 
disabilities.

          TITLE V--ENVIRONMENTAL STEWARDSHIP AND STREAMLINING

SEC. 501. AMENDMENTS TO AIR TOUR MANAGEMENT PROGRAM.

  Section 40128 is amended--
          (1) in subsection (a)(1)(C) by inserting ``or voluntary 
        agreement under subsection (b)(7)'' before ``for the park'';
          (2) in subsection (a) by adding at the end the following:
          ``(5) Exemption.--
                  ``(A) In general.--Notwithstanding paragraph (1), a 
                national park that has 50 or fewer commercial air tour 
                flights a 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.--The Director shall inform the 
                Administrator, in writing, of each determination under 
                subparagraph (B). The Director and Administrator shall 
                publish an annual list of national parks that are 
                covered by the exemption provided by this paragraph.
                  ``(D) Annual report.--A commercial air tour operator 
                conducting commercial air tours in a national park that 
                is exempt from the requirements of this section shall 
                submit to the Administrator and the Director an annual 
                report regarding the number of commercial air tour 
                flights it conducts each year in such park.'';
          (3) in subsection (b) 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 applicant and an 
                operator that has interim operating authority) that has 
                applied to conduct 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.--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.--A voluntary agreement under this 
                paragraph may be terminated at any time at the 
                discretion of the Director or the Administrator if the 
                Director determines that the agreement is not 
                adequately protecting park resources or visitor 
                experiences or the Administrator determines that the 
                agreement is adversely affecting aviation safety or the 
                national aviation system. If a voluntary agreement for 
                a national park is terminated, 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.'';
          (4) in subsection (c) 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 section if--
                          ``(i) adequate information regarding the 
                        operator's existing and proposed operations 
                        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 Director's 
                        professional expertise regarding the protection 
                        of the park resources and values and visitor 
                        use and enjoyment.'';
          (5) in subsection (c)(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 operator's 
                        proposed operations 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.''; and
          (6) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively; and
          (7) by inserting after subsection (c) the following:
  ``(d) Commercial Air Tour Operator Reports.--
          ``(1) Report.--Each commercial air tour operator providing a 
        commercial air tour over a national park under interim 
        operating authority granted under subsection (c) or in 
        accordance with an air tour management plan under subsection 
        (b) shall submit a report to the Administrator and Director 
        regarding the number of its commercial air tour operations over 
        each national park 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 3 months after the 
        date of enactment of the FAA Reauthorization Act of 2007, the 
        Administrator and Director shall jointly issue an initial 
        request for reports under this subsection. The reports shall be 
        submitted to the Administrator and Director on a frequency and 
        in a format prescribed by the Administrator and 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) supplement such analysis, as necessary, 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; or
          ``(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.''.

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. CLEEN ENGINE AND AIRFRAME TECHNOLOGY PARTNERSHIP.

  (a) Cooperative Agreement.--Subchapter I of chapter 475 is amended by 
adding at the end the following:

``Sec. 47511. CLEEN engine and airframe technology partnership

  ``(a) In General.--The Administrator of the Federal Aviation 
Administration shall enter into a cooperative agreement, using a 
competitive process, with an institution, entity, or consortium to 
carry out a program for the development, maturing, and certification of 
CLEEN engine and airframe technology for aircraft over the next 10 
years.
  ``(b) CLEEN Engine and Airframe Technology Defined.--In this section, 
the term `CLEEN engine and airframe technology' means continuous lower 
energy, emissions, and noise engine and airframe technology.
  ``(c) Performance Objective.--The Administrator shall establish the 
following performance objectives for the program, to be achieved by 
September 30, 2015:
          ``(1) Development of certifiable aircraft technology that 
        reduces greenhouse gas emissions by increasing aircraft fuel 
        efficiency by 25 percent relative to 1997 subsonic jet aircraft 
        technology.
          ``(2) Development of certifiable engine technology that 
        reduces landing and takeoff cycle nitrogen oxide emissions by 
        50 percent, without increasing other gaseous or particle 
        emissions, over the International Civil Aviation Organization 
        standard adopted in 2004.
          ``(3) Development of certifiable aircraft technology that 
        reduces noise levels by 10 decibels at each of the 3 
        certification points relative to 1997 subsonic jet aircraft 
        technology.
          ``(4) Determination of the feasibility of the use of 
        alternative fuels in aircraft systems, including successful 
        demonstration and quantification of the benefits of such fuels.
          ``(5) Determination of the extent to which new engine and 
        aircraft technologies may be used to retrofit or re-engine 
        aircraft to increase the integration of retrofitted and re-
        engined aircraft into the commercial fleet.
  ``(d) Funding.--Of amounts appropriated under section 48102(a), not 
more than the following amounts may be used to carry out this section:
          ``(1) $6,000,000 for fiscal year 2008.
          ``(2) $22,000,000 for fiscal year 2009.
          ``(3) $33,000,000 for fiscal year 2010.
          ``(4) $50,000,000 for fiscal year 2011.
  ``(e) Report.--Beginning in fiscal year 2009, the Administrator shall 
publish an annual report on the program established under this section 
until completion of the program.''.
  (b) Clerical Amendment.--The analysis for such subchapter is amended 
by adding at the end the following:

``47511. CLEEN engine and airframe technology partnership.''.

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 provided in subsection (b), (c), or 
(d), after December 31, 2012, 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) Exception.--Subsection (a) shall not apply to aircraft operated 
only outside the 48 contiguous States.
  ``(c) Exceptions.--The Secretary may allow temporary operation of an 
airplane 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 emergency situations.
          ``(8) To divert the aircraft to an alternative air port 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) Statutory Construction.--Nothing in the section may be 
construed as interfering with, nullifying, or otherwise affecting 
determinations made by the Federal Aviation Administration, or to be 
made by the Administration, with respect to applications under part 161 
of title 14, Code of Federal Regulations, that were pending on the date 
of enactment of this section.''.
  (b) Conforming Amendments.--
          (1) 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) Section 47532 is amended by inserting ``or 47534'' after 
        ``47528-47531''.
          (3) The analysis for chapter 475 is amended--
                  (A) by striking the item relating to section 47531 
                and inserting the following:

``47531. Penalties.''; and
                  (B) by inserting after the item relating to section 
                47533 the following:

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

SEC. 507. ENVIRONMENTAL MITIGATION PILOT PROGRAM.

  (a) Establishment.--The Secretary of Transportation shall establish a 
pilot program to carry out not more than 6 environmental mitigation 
demonstration projects at public-use airports.
  (b) Grants.--In implementing the program, the Secretary may make a 
grant to the sponsor of a public-use airport from funds apportioned 
under section 47117(e)(1)(A) of title 49, United States Code, to carry 
out an environmental mitigation demonstration project to measurably 
reduce or mitigate aviation impacts on noise, air quality, or water 
quality in the vicinity of the airport.
  (c) Eligibility for Passenger Facility Fees.--An environmental 
mitigation demonstration project that receives funds made available 
under this section may be considered an eligible airport-related 
project for purposes of section 40117 of such title.
  (d) Selection Criteria.--In selecting among applicants for 
participation in the program, the Secretary shall give priority 
consideration to applicants proposing to carry out environmental 
mitigation demonstration projects that will--
          (1) achieve the greatest reductions in aircraft noise, 
        airport emissions, or airport water quality impacts either on 
        an absolute basis or on a per dollar of funds expended basis; 
        and
          (2) be implemented by an eligible consortium.
  (e) Federal Share.--Notwithstanding any provision of subchapter I of 
chapter 471 of such title, the United States Government share of 
allowable project costs of an environmental mitigation demonstration 
project carried out under this section shall be 50 percent.
  (f) Maximum Amount.--The Secretary may not make grants for a single 
environmental mitigation demonstration project under this section in a 
total amount that exceeds $2,500,000.
  (g) Publication of Information.--The Secretary may develop and 
publish information on the results of environmental mitigation 
demonstration projects carried out under this section, including 
information identifying best practices for reducing or mitigating 
aviation impacts on noise, air quality, or water quality in the 
vicinity of airports.
  (h) Definitions.--In this section, the following definitions apply:
          (1) Eligible consortium.--The term ``eligible consortium'' 
        means a consortium of 2 or more of the following entities:
                  (A) A business incorporated in the United States.
                  (B) A public or private educational or research 
                organization located in the United States.
                  (C) An entity of a State or local government.
                  (D) A Federal laboratory.
          (2) Environmental mitigation demonstration project.--The term 
        ``environmental mitigation demonstration project'' means a 
        project that--
                  (A) demonstrates at a public-use airport 
                environmental mitigation techniques or technologies 
                with associated benefits, which have already been 
                proven in laboratory demonstrations;
                  (B) utilizes methods for efficient adaptation or 
                integration of innovative concepts to airport 
                operations; and
                  (C) demonstrates whether a technique or technology 
                for environmental mitigation identified in research 
                is--
                          (i) practical to implement at or near 
                        multiple public-use airports; and
                          (ii) capable of reducing noise, airport 
                        emissions, greenhouse gas emissions, or water 
                        quality impacts in measurably significant 
                        amounts.

SEC. 508. 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 design, develop, and test air traffic flow 
management tools, methodologies, and procedures that will allow air 
traffic controllers of the Administration to better manage the flow of 
aircraft on the ground and reduce the length of ground holds and idling 
time for aircraft.
  (b) Selection Criteria.--In selecting from among airports at which to 
conduct the pilot program, the Secretary shall give priority 
consideration to airports at which improvements in ground control 
efficiencies are likely to achieve the greatest fuel savings or air 
quality or other environmental benefits, as measured by the amount of 
reduced fuel, reduced emissions, or other environmental benefits per 
dollar of funds expended under the pilot program.
  (c) Maximum Amount.--Not more than a total of $5,000,000 may be 
expended under the pilot program at any single public-use airport.
  (d) Report to Congress.--Not later than 3 years after the date of the 
enactment of 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 containing--
          (1) an evaluation of the effectiveness of the pilot program, 
        including an assessment of the tools, methodologies, and 
        procedures that provided the greatest fuel savings and air 
        quality and other environmental benefits, and any impacts on 
        safety, capacity, or efficiency of the air traffic control 
        system or the airports at which affected aircraft were 
        operating;
          (2) an identification of anticipated benefits from 
        implementation of the tools, methodologies, and procedures 
        developed under the pilot program at other airports;
          (3) a plan for implementing the tools, methodologies, and 
        procedures developed under the pilot program at other airports 
        or the Secretary's reasons for not implementing such measures 
        at other airports; and
          (4) such other information as the Secretary considers 
        appropriate.

SEC. 509. HIGH PERFORMANCE AND SUSTAINABLE AIR TRAFFIC CONTROL 
                    FACILITIES.

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall implement, to the maximum 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 and improve the environmental 
performance of such facilities.
  (b) Authorization.--Of amounts appropriated under section 48101(a) of 
title 49, United States Code, such sums as may be necessary may be used 
to carry out this section.

SEC. 510. REGULATORY RESPONSIBILITY FOR AIRCRAFT ENGINE NOISE AND 
                    EMISSIONS STANDARDS.

  (a) Independent Review.--The Administrator of the FAA shall make 
appropriate arrangements for the National Academy of Public 
Administration or another qualified independent entity to review, in 
consultation with the FAA and the EPA, whether it is desirable to 
locate the regulatory responsibility for the establishment of engine 
noise and emissions standards for civil aircraft within one of the 
agencies.
  (b) Considerations.--The review shall be conducted so as to take into 
account--
          (1) the interrelationships between aircraft engine noise and 
        emissions;
          (2) the need for aircraft engine noise and emissions to be 
        evaluated and addressed in an integrated and comprehensive 
        manner;
          (3) the scientific expertise of the FAA and the EPA to 
        evaluate aircraft engine emissions and noise impacts on the 
        environment;
          (4) expertise to interface environmental performance with 
        ensuring the highest safe and reliable engine performance of 
        aircraft in flight;
          (5) consistency of the regulatory responsibility with other 
        missions of the FAA and the EPA;
          (6) past effectiveness of the FAA and the EPA in carrying out 
        the aviation environmental responsibilities assigned to the 
        agency; and
          (7) the international responsibility to represent the United 
        States with respect to both engine noise and emissions 
        standards for civil aircraft
  (c) Report to Congress.--Not later than 6 months after the date of 
enactment of this Act, the Administrator of the FAA shall submit to 
Congress a report on the results of the review. The report shall 
include any recommendations developed as a result of the review and, if 
a transfer of responsibilities is recommended, a description of the 
steps and timeline for implementation of the transfer.
  (d) Definitions.--In this section, the following definitions apply:
          (1) EPA.--The term ``EPA'' means the Environmental Protection 
        Agency.
          (2) FAA.--The term ``FAA'' means the Federal Aviation 
        Administration.

SEC. 511. PRODUCTION OF ALTERNATIVE JET FUEL TECHNOLOGY FOR CIVIL 
                    AIRCRAFT.

  (a) Establishment of Research Program.--Using amounts made available 
under section 48102(a) of title 49, United States Code, the Secretary 
of Transportation shall establish a research program related to 
developing jet fuel from alternative sources (such as coal, natural 
gas, biomass, ethanol, butanol, and hydrogen) through grants or other 
measures authorized under section 106(l)(6) of such title, including 
reimbursable agreements with other Federal agencies.
  (b) Participation by Educational and Research Institutions.--In 
conducting the program, the Secretary provide for participation by 
educational and research institutions that have existing facilities and 
experience in the development and deployment of technology for 
alternative jet fuels.
  (c) Designation of Institute as a Center of Excellence.--Not later 
than 6 months after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall designate an 
institution described in subsection (a) as a Center of Excellence for 
Alternative Jet Fuel Research.

                TITLE VI--FAA EMPLOYEES AND ORGANIZATION

SEC. 601. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

  (a) Dispute Resolution.--Section 40122(a) is amended--
          (1) by redesignating paragraphs (3) and (4) as paragraphs (5) 
        and (6), 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 Reauthorization Act of 2007); 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) Binding arbitration.--
                          ``(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 an 
                        agreement, the Administrator and the exclusive 
                        bargaining representative of the employees (in 
                        this subparagraph referred to as the `parties') 
                        shall submit their issues in controversy to the 
                        Federal Service Impasses Panel. The Panel shall 
                        assist the parties in resolving the impasse by 
                        asserting jurisdiction and ordering binding 
                        arbitration by a private arbitration board 
                        consisting of 3 members.
                          ``(ii) Appointment of arbitration board.--The 
                        Executive Director of the Panel shall provide 
                        for the appointment of the 3 members of a 
                        private arbitration board under clause (i) by 
                        requesting the Director of the Federal 
                        Mediation and Conciliation Service to prepare a 
                        list of not less than 15 names of arbitrators 
                        with Federal sector experience and by providing 
                        the list to the parties. Within 10 days of 
                        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 within 7 
                        days. If either of the parties fails to select 
                        a person or if the 2 arbitrators are unable to 
                        agree on the third person within 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) 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)(B), 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 approval by the head of the agency in accordance with the 
        provisions referred to in subsection (g)(2)(C).
          ``(4) Enforcement.--
                  ``(A) Enforcement actions in united states courts.--
                Each United States district court and each United 
                States court of a place subject to the jurisdiction of 
                the United States shall have jurisdiction of 
                enforcement actions brought under this section. Such an 
                action may be brought in any judicial district in the 
                State in which the violation of this section is alleged 
                to have been committed, the judicial district in which 
                the Federal Aviation Administration has its principal 
                office, or the District of Columbia.
                  ``(B) Attorney fees.--The court may assess against 
                the Federal Aviation Administration reasonable attorney 
                fees and other litigation costs reasonably incurred in 
                any case under this section in which the complainant 
                has substantially prevailed.''.
  (b) Application.--On and after the date of enactment of this Act, any 
changes implemented by the Administrator of the Federal Aviation 
Administration on and after July 10, 2005, under section 40122(a) of 
title 49, United States Code (as in effect on the day before such date 
of enactment), without the agreement of the exclusive bargaining 
representative of the employees of the Administration certified under 
section 7111 of title 5, United States Code, shall be null and void and 
the parties shall be governed by their last mutual agreement before the 
implementation of such changes. The Administrator and the bargaining 
representative shall resume negotiations promptly, and, subject to 
subsection (c), their last mutual agreement shall be in effect until a 
new contract is adopted by the Administrator and the bargaining 
representative. If an agreement is not reached within 45 days after the 
date on which negotiations resume, the Administrator and the bargaining 
representative shall submit their issues in controversy to the Federal 
Service Impasses Panel in accordance with section 7119 of title 5, 
United States Code, for binding arbitration in accordance with 
paragraphs (2)(B), (3), and (4) of section 40122(a) of title 49, United 
States Code (as amended by subsection (a) of this section).
  (c) Savings Clause.--All cost of living adjustments and other pay 
increases, lump sum payments to employees, and leave and other benefit 
accruals implemented as part of the changes referred to in subsection 
(b) may not be reversed unless such reversal is part of the calculation 
of back pay under subsection (d). The Administrator shall waive any 
overpayment paid to, and not collect any funds for such overpayment, 
from former employees of the Administration who received lump sum 
payments prior to their separation from the Administration.
  (d) Back Pay.--
          (1) In general.--Employees subject to changes referred to in 
        subsection (b) that are determined to be null and void under 
        subsection (b) shall be eligible for pay that the employees 
        would have received under the last mutual agreement between the 
        Administrator and the exclusive bargaining representative of 
        such employees before the date of enactment of this Act and any 
        changes were implemented without agreement of the bargaining 
        representative. The Administrator shall pay the employees such 
        pay subject to the availability of amounts appropriated to 
        carry out this subsection. If the appropriated funds do not 
        cover all claims of the employees for such pay, the 
        Administrator and the bargaining representative, pursuant to 
        negotiations conducted in accordance with section 40122(a) of 
        title 49, United States Code (as amended by subsection (a) of 
        this section), shall determine the allocation of the 
        appropriated funds among the employees on a pro rata basis.
          (2) Authorization of appropriations.--There is authorized to 
        be appropriated $20,000,000 to carry out this subsection.
  (e) Interim Agreement.--If the Administrator and the exclusive 
bargaining representative of the employees subject to the changes 
referred to in subsection (b) reach a final and binding agreement with 
respect to such changes before the date of enactment of this Act, such 
agreement shall supersede any changes implemented by the Administrator 
under section 40122(a) of title 49, United States Code (as in effect on 
the day before such date of enactment), without the agreement of the 
bargaining representative, and subsections (b) and (c) shall not take 
effect.

SEC. 602. MSPB REMEDIAL AUTHORITY FOR FAA EMPLOYEES.

  Section 40122(g)(3) of title 49, United States Code, 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.''.

SEC. 603. FAA TECHNICAL TRAINING AND STAFFING.

  (a) Study.--
          (1) In general.--The Comptroller General shall conduct a 
        study on the training of the airway transportation systems 
        specialists of the Federal Aviation Administration (in this 
        section referred to as ``FAA systems specialists'').
          (2) Contents.--The study shall--
                  (A) include an analysis of the type of training 
                provided to FAA systems specialists;
                  (B) include an analysis of the type of training that 
                FAA systems specialists need to be proficient on the 
                maintenance of latest technologies;
                  (C) include a description of actions that the 
                Administration has undertaken to ensure that FAA 
                systems specialists receive up-to-date training on the 
                latest technologies;
                  (D) identify the amount and cost of FAA systems 
                specialists training provided by vendors;
                  (E) identify the amount and cost of FAA systems 
                specialists training provided by the Administration 
                after developing courses for the training of such 
                specialists;
                  (F) identify the amount and cost of travel that is 
                required of FAA systems specialists in receiving 
                training; and
                  (G) include a recommendation regarding the most cost-
                effective approach to providing FAA systems specialists 
                training.
          (3) Report.--Not later than 1 year 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.
  (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) Contents.--The study shall be conducted so as to provide 
        the following:
                  (A) A suggested method of modifying FAA systems 
                specialists staffing models for application to current 
                local conditions or applying some other approach to 
                developing an objective staffing standard.
                  (B) The approximate cost and length of time for 
                developing such models.
          (3) Report.--Not later than one year after the initiation of 
        the arrangements under subsection (a), the National Academy of 
        Sciences shall submit to Congress a report on the results of 
        the study.

SEC. 604. DESIGNEE PROGRAM.

  (a) Report.--Not later than 18 months 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 status of recommendations made by the Government 
Accountability Office in its October 2004 report, ``Aviation Safety: 
FAA Needs to Strengthen Management of Its Designee Programs'' (GAO-05-
40).
  (b) Contents.--The report shall include--
          (1) an assessment of the extent to which the Federal Aviation 
        Administration has responded to recommendations of the 
        Government Accountability Office referred to in subsection (a);
          (2) an identification of improvements, if any, that have been 
        made to the designee programs referred to in the report of the 
        Office as a result of such recommendations; and
          (3) an identification of further action that is needed to 
        implement such recommendations, improve the Administration's 
        management control of the designee programs, and increase 
        assurance that designees meet the Administration's performance 
        standards.

SEC. 605. STAFFING MODEL FOR AVIATION SAFETY INSPECTORS.

  (a) In General.--Not later than October 31, 2009, the Administrator 
of the Federal Aviation Administration shall develop a staffing model 
for aviation safety inspectors. In developing the model, the 
Administrator shall follow the recommendations outlined in the 2007 
study released by the National Academy of Sciences entitled ``Staffing 
Standards for Aviation Safety Inspectors'' and consult with interested 
persons, including the exclusive collective bargaining representative 
of the aviation safety inspectors.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 606. SAFETY CRITICAL STAFFING.

  (a) Aviation Safety Inspectors.--The Administrator of the Federal 
Aviation Administration shall increase the number of aviation safety 
inspectors in the Flight Standards Service to not less than--
          (1) __ full-time equivalent positions in fiscal year 2008;
          (2) __ full-time equivalent positions in fiscal year 2009;
          (3) __ full-time equivalent positions in fiscal year 2010; 
        and
          (4) __ full-time equivalent positions in fiscal year 2011.
  (b) Operational Support.--The Administrator shall increase the number 
of safety technical specialists and operational support positions in 
the Flight Standards Service to the levels necessary, as determined by 
the Administrator, to ensure the most efficient and cost-effective use 
of the aviation safety inspectors authorized by subsection (a).
  (c) Authorization of Appropriations.--In addition to amounts 
authorized by section 106(k) of title 49, United States Code, there is 
authorized to be appropriated to carry out subsections (a) and (b)--
          (1) $58,000,000 for fiscal year 2008;
          (2) $134,000,000 for fiscal year 2009;
          (3) $170,000,000 for fiscal year 2010; and
          (4) $208,000,000 for fiscal year 2011.
Such sums shall remain available until expended.
  (d) Implementation of Staffing Standards.--Notwithstanding any other 
provision of this section, upon completion of the flight standards 
service staffing model pursuant to section 604 of this Act, and 
validation of the model by the Administrator, there are authorized to 
be appropriated such sums as may be necessary to support the number of 
aviation safety inspectors, safety technical specialists, and operation 
support positions that such model determines are required to meet the 
responsibilities of the Flight Standards Service.

SEC. 607. CENTER FOR EXCELLENCE IN AVIATION EMPLOYMENT.

  (a) Establishment.--The Administrator of the Federal Aviation 
Administration shall establish a Center for Excellence in Aviation 
Employment (in this section referred to as the ``Center'').
  (b) Applied Research and Training.--The Center shall conduct applied 
research and training on--
          (1) human performance in the air transportation environment;
          (2) air transportation personnel, including air traffic 
        controllers, pilots, and technicians; and
          (3) any other aviation human resource issues pertinent to 
        developing and maintaining a safe and efficient air 
        transportation system.
  (c) Duties.--The Center shall--
          (1) in conjunction with the Collegiate Training Initiative 
        and other air traffic controller training programs, develop, 
        implement, and evaluate a comprehensive, best-practices based 
        training program for air traffic controllers;
          (2) work with the Office of Human Resource Management of the 
        Administration as that office develops and implements a 
        strategic recruitment and marketing program to help the 
        Administration compete for the best qualified employees and 
        incorporate an employee value proposition process that results 
        in attracting a broad-based and diverse aviation workforce in 
        mission critical positions, including air traffic controller, 
        aviation safety inspector, airway transportation safety 
        specialist, and engineer;
          (3) through industry surveys and other research methodologies 
        and in partnership with the ``Taskforce on the Future of the 
        Aerospace Workforce'' and the Secretary of Labor, establish a 
        baseline of general aviation employment statistics for purposes 
        of projecting and anticipating future workforce needs and 
        demonstrating the economic impact of general aviation 
        employment;
          (4) conduct a comprehensive analysis of the airframe and 
        powerplant technician certification process and employment 
        trends for maintenance repair organization facilities, 
        certificated repair stations, and general aviation maintenance 
        organizations;
          (5) establish a best practices model in aviation maintenance 
        technician school environments; and
          (6) establish a workforce retraining program to allow for 
        transition of recently unemployed and highly skilled mechanics 
        into aviation employment.
  (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator such sums as may be necessary to 
carry out this section. Such sums shall 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 assumptions and methods 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.
  (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, the Administrator of the Federal Aviation Administration, 
and representatives of the Civil Aeronautical Medical Institute.
  (c) Contents.--The study shall include an examination of 
representative information on human factors, traffic activity, and the 
technology and equipment used in air traffic control.
  (d) Recommendations and Estimates.--In conducting the study, the 
National Academy of Sciences shall develop--
          (1) recommendations for the development by the FAA of 
        objective staffing standards to maintain the safety and 
        efficiency of the national airspace system with current and 
        future projected air traffic levels; and
          (2) estimates of cost and schedule for the development of 
        such standards by the FAA or its contractors.
  (e) Report.--Not later than 18 months 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. ASSESSMENT OF TRAINING PROGRAMS FOR AIR TRAFFIC CONTROLLERS.

  (a) Study.--The Administrator of the Federal Aviation Administration 
shall conduct a study to assess the adequacy of training programs for 
air traffic controllers.
  (b) Contents.--The study shall include--
          (1) a review of the current training system for air traffic 
        controllers;
          (2) an analysis of the competencies required of air traffic 
        controllers for successful performance in the current air 
        traffic control environment;
          (3) an analysis of competencies required of air traffic 
        controllers as the Federal Aviation Administration transitions 
        to the Next Generation Air Transportation System; and
          (4) an analysis of various training approaches available to 
        satisfy the controller competencies identified under paragraphs 
        (2) and (3).
  (c) Report.--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 study.

SEC. 610. COLLEGIATE TRAINING INITIATIVE STUDY.

  (a) Study.--The Administrator of the Federal Aviation Administration 
shall conduct a study on training options for graduates of the 
Collegiate Training Initiative program conducted under section 44506(c) 
of title 49 United States Code. The study shall analyze the impact of 
providing as an alternative to the current training provided at the 
Mike Monroney Aeronautical Center of the Administration a new 
controller orientation session for graduates of such programs at the 
Mike Monroney Aeronautical Center followed by on-the-job training for 
newly hired air traffic controllers who are graduates of such program 
and shall include--
          (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 such programs.
  (b) Report.--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 
to the Committee on Commerce, Science, and Transportation of the Senate 
a report on the results of the study.

                     TITLE VII--AVIATION INSURANCE

SEC. 701. GENERAL AUTHORITY.

  (a) Extension of Policies.--Section 44302(f)(1) is amended--
          (1) by striking ``August 31, 2006'' and inserting ``September 
        30, 2011''; and
          (2) by striking ``December 31, 2006'' and inserting 
        ``September 30, 2017''.
  (b) Successor Program.--Section 44302(f) is amended by adding at the 
end the following:
          ``(3) Successor program.--
                  ``(A) In general.--After December 31, 2017, coverage 
                for the risks specified in a policy that has been 
                extended under paragraph (1) shall be provided in an 
                airline industry sponsored risk retention or other 
                risk-sharing arrangement approved by the Secretary.
                  ``(B) Transfer of premiums.--
                          ``(i) In general.--On December 31, 2017, and 
                        except as provided in clause (ii), premiums 
                        that are collected by the Secretary from the 
                        airline industry after September 22, 2001, for 
                        any policy under this subsection, and interest 
                        earned thereon, as determined by the Secretary, 
                        shall be transferred to an airline industry 
                        sponsored risk retention or other risk-sharing 
                        arrangement approved by the Secretary.
                          ``(ii) Determination of amount transferred.--
                        The amount transferred pursuant to clause (i) 
                        shall be less--
                                  ``(I) the amount of any claims paid 
                                out on such policies from September 22, 
                                2001, through December 31, 2017;
                                  ``(II) the amount of any claims 
                                pending under such policies as of 
                                December 31, 2017; and
                                  ``(III) the cost, as determined by 
                                the Secretary, of administering the 
                                provision of insurance policies under 
                                this chapter from September 22, 2001, 
                                through December 31, 2017.''.

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

  Section 44303(b) is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2012''.

SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY.

  Section 44304 is amended in the second sentence by striking ``the 
carrier'' and inserting ``any insurance carrier''.

SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS.

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

SEC. 705. EXTENSION OF PROGRAM AUTHORITY.

  Section 44310 is amended by striking ``March 30, 2008'' and inserting 
``September 30, 2017''.

                       TITLE VIII--MISCELLANEOUS

SEC. 801. AIR CARRIER CITIZENSHIP.

  Section 40102(a)(15) is amended by adding at the end the following:
        ``For purposes of subparagraph (C), an air carrier shall not be 
        deemed to be under the actual control of citizens of the United 
        States unless citizens of the United States control all matters 
        pertaining to the business and structure of the air carrier, 
        including operational matters such as marketing, branding, 
        fleet composition, route selection, pricing, and labor 
        relations.''.

SEC. 802. DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST OF 
                    NATIONAL SECURITY.

  Section 40119(b) is amended by adding at the end the following:
          ``(3) Limitation on applicability of freedom of information 
        act.--Section 552 of title 5, United States Code, shall not 
        apply to disclosures that the Administrator of the Federal 
        Aviation Administration 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. 803. FAA ACCESS TO CRIMINAL HISTORY RECORDS AND DATABASE SYSTEMS.

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

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

  ``(a) Access to Records or Databases Systems.--
          ``(1) Access to information.--Notwithstanding section 534 of 
        title 28, and regulations issued to implement such section, the 
        Administrator of the Federal Aviation Administration may access 
        a system of documented criminal justice information maintained 
        by the Department of Justice or by a State but may do so only 
        for the purpose of carrying out civil and administrative 
        responsibilities of the Administration to protect the safety 
        and security of the national airspace system or to support the 
        missions of the Department of Justice, the Department of 
        Homeland Security, and other law enforcement agencies.
          ``(2) Release of information.-- In accessing a system 
        referred to in paragraph (1), the Administrator shall be 
        subject to the same conditions and procedures established by 
        the Department of Justice or the State for other governmental 
        agencies with access to the system.
          ``(3) Limitation.--The Administrator may not use the access 
        authorized under paragraph (1) to conduct criminal 
        investigations.
  ``(b) Designated Employees.--The Administrator shall designate, by 
order, employees of the Administration who shall carry out the 
authority described in subsection (a). The designated employees may--
          ``(1) have access to and receive criminal history, driver, 
        vehicle, and other law enforcement information contained in the 
        law enforcement databases of the Department of Justice, or any 
        jurisdiction of a State, in the same manner as a police officer 
        employed by a State or local authority of that State who is 
        certified or commissioned under the laws of that State;
          ``(2) use any radio, data link, or warning system of the 
        Federal Government, and of any jurisdiction in a State, that 
        provides information about wanted persons, be-on-the-lookout 
        notices, warrant status, or other officer safety information to 
        which a police officer employed by a State or local authority 
        in that State who is certified or commission under the laws of 
        that State has access and in the same manner as such police 
        officer; or
          ``(3) receive Federal, State, or local government 
        communications with a police officer employed by a State or 
        local authority in that State in the same manner as a police 
        officer employed by a State or local authority in that State 
        who is commissioned under the laws of that State.
  ``(c) System of Documented Criminal Justice Information Defined.--In 
this section, the term `system of documented criminal justice 
information' means any law enforcement database, system, or 
communication containing information concerning identification, 
criminal history, arrests, convictions, arrest warrants, wanted or 
missing persons, including the National Crime Information Center and 
its incorporated criminal history databases and the National Law 
Enforcement Telecommunications System.''.
  (b) Clerical Amendment.--The analysis for chapter 401 is amended by 
adding at the end the following:

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

SEC. 804. CLARIFICATION OF AIR CARRIER FEE DISPUTES.

  (a) In General.--Section 47129 is amended--
          (1) in the section heading by striking ``air carrier'' and 
        inserting ``carrier'';
          (2) in subsection (a) by striking ``(as defined in section 
        40102 of this title)'' and inserting ``(as such terms are 
        defined in section 40102)'';
          (3) in the heading for subsection (d) by striking ``Air 
        Carrier'' and inserting ``Air Carrier and Foreign Air 
        Carrier'';
          (4) in the heading for paragraph (2) of subsection (d) by 
        striking ``air carrier'' and inserting ``air carrier and 
        foreign air carrier'';
          (5) by striking ``air carriers'' each place it appears and 
        inserting ``air carriers or foreign air carriers'';
          (6) by striking ``air carrier'' each place it appears and 
        inserting ``air carrier or foreign air carrier''; and
          (7) by striking ``air carrier's'' each place it appears and 
        inserting ``air carrier's or foreign air carrier's''.
  (b) Clerical Amendment.--The analysis for chapter 471 is amended by 
striking the item relating to section 47129 and inserting the 
following:

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

SEC. 805. 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 initiate 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 between fiscal years 
        2001 and 2007, as reported in the plan, as compared with the 
        amounts apportioned or otherwise made available to individual 
        airports over the same period of time.
          (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) 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 of 
        initiation of the study, 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 
                subjects listed 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. 806. EXPRESS CARRIER EMPLOYEE PROTECTION.

  (a) In General.--Section 201 of the Railway Labor Act (45 U.S.C. 181) 
is amended--
          (1) by striking ``All'' and inserting ``(a) In General.--
        All'';
          (2) by inserting ``and every express carrier'' after ``common 
        carrier by air''; and
          (3) by adding at the end the following:
  ``(b) Special Rules for Express Carriers.--
          ``(1) In general.--An employee of an express carrier shall be 
        covered by this Act only if that employee is in a position that 
        is eligible for certification under part 61, 63, or 65 of title 
        14, Code of Federal Regulations, and only if that employee 
        performs duties for the express carrier that are eligible for 
        such certification. All other employees of an express carrier 
        shall be covered by the provisions of the National Labor 
        Relations Act (29 U.S.C. 151 et seq.).
          ``(2) Air carrier status.--Any person that is an express 
        carrier shall be governed by paragraph (1) notwithstanding any 
        finding that the person is also a common carrier by air.
          ``(3) Express carrier defined.--In this section, the term 
        `express carrier' means any person (or persons affiliated 
        through common control or ownership) whose primary business is 
        the express shipment of freight or packages through an 
        integrated network of air and surface transportation.''.
  (b) Conforming Amendment.--Section 1 of such Act (45 U.S.C. 151) is 
amended in the first paragraph by striking ``, any express company that 
would have been subject to subtitle IV of title 49, United States Code, 
as of December 31, 1995,,''.

SEC. 807. CONSOLIDATION AND REALIGNMENT OF FAA FACILITIES.

  (a) Establishment of Working Group.--Not later than 9 months after 
the date of enactment of this Act, the Secretary of Transportation 
shall establish within the FAA a working group to develop criteria and 
make recommendations for the realignment of services and facilities of 
the FAA to assist in the transition to next generation facilities and 
to help reduce capital, operating, maintenance, and administrative 
costs in instances in which cost reductions can be implemented without 
adversely affecting safety.
  (b) Membership.--The working group shall be composed of, at a 
minimum--
          (1) the Administrator of the FAA;
          (2) 2 representatives of air carriers;
          (3) 2 representatives of the general aviation community;
          (4) 2 representatives of labor unions representing employees 
        who work at field facilities of the FAA; and
          (5) 2 representatives of the airport community.
  (c) Report to Congress Containing Recommendations of the Working 
Group.--
          (1) Submission.--Not later than 6 months after convening the 
        working group, 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 criteria 
        and recommendations developed by the working group under this 
        section.
          (2) Contents.--The report shall include a justification for 
        each recommendation to consolidate or realign a facility or 
        service and a description of the costs and savings associated 
        with the consolidation or realignment.
  (d) Public Notice and Comment.--The Administrator shall publish the 
report submitted under subsection (c) in the Federal Register and allow 
45 days for the submission of public comments. In addition, the 
Administrator upon request shall hold a public hearing in a community 
that would be affected by a recommendation in the report.
  (e) Objections.--Any interested person may file with the 
Administrator a written objection to a recommendation of the working 
group.
  (f) Report to Congress Containing Recommendations of the 
Administrator.--Not later than 60 days after the last day of the period 
for public comment under subsection (d), the Administrator shall submit 
to the committees referred to in subsection (c)(1) a report containing 
the recommendations of the Administrator on realignment of services and 
facilities of the FAA and copies of any public comments and objections 
received by the Administrator under this section.
  (g) Limitation on Implementation of Realignments and 
Consolidations.--The Administrator may not realign or consolidate any 
services or facilities of the FAA before the Administrator has 
submitted the report under subsection (f).
  (h) FAA Defined.--In this section, the term ``FAA'' means the Federal 
Aviation Administration.

SEC. 808. TRANSPORTATION SECURITY ADMINISTRATION CENTRALIZED TRAINING 
                    FACILITY FEASIBILITY STUDY.

  (a) Study.--The Secretary of Homeland Security shall carry out a 
study on the feasibility of establishing a centralized training center 
for advanced security training by the Transportation Security 
Administration.
  (b) Considerations.--In conducting the study, the Secretary shall 
take into consideration the benefits, cost, equipment, and building 
requirements for a training center and whether the benefits of 
establishing a center would be an efficient process for training 
transportation security officers.
  (c) Report.--Not later than one year after the date of enactment of 
this Act, the Secretary 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 report on the results of the study.

SEC. 809. GAO STUDY ON COOPERATION OF AIRLINE INDUSTRY IN INTERNATIONAL 
                    CHILD ABDUCTION CASES.

  (a) Study.--The Comptroller General shall conduct a study to help 
determine how the Federal Aviation Administration (in this section 
referred to as the ``FAA'') could better ensure the collaboration and 
cooperation of air carriers and foreign air carriers providing air 
transportation and relevant Federal agencies to develop and enforce 
child safety control for adults traveling internationally with 
children.
  (b) Contents.--In conducting the study, the Comptroller General shall 
examine--
          (1) the nature and scope of exit policies and procedures of 
        the FAA, air carriers, and foreign air carriers and how the 
        enforcement of such policies and procedures is monitored, 
        including ticketing and boarding procedures;
          (2) the extent to which air carriers and foreign air carriers 
        cooperate in the investigations of international child 
        abduction cases, including cooperation with the National Center 
        for Missing and Exploited Children and relevant Federal, State, 
        and local agencies;
          (3) any effective practices, procedures, or lessons learned 
        from the assessment of current practices and procedures of air 
        carriers, foreign air carriers, and operators of other 
        transportation modes that could improve the ability of the 
        aviation community to ensure the safety of children traveling 
        internationally with adults and, as appropriate, enhance the 
        capability of air carriers and foreign air carriers to 
        cooperate in the investigations of international child 
        abduction cases; and
          (4) any liability issues associated with providing assistance 
        in such investigations.
  (c) Report.--Not later than one year after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
on the results of the study.

SEC. 810. LOST NATION AIRPORT, OHIO.

  (a) Approval of Sale.--The Secretary of Transportation may approve 
the sale of Lost Nation Airport from the city of Willoughby, Ohio, to 
Lake County, Ohio, if--
          (1) Lake County meets all applicable requirements for 
        sponsorship of the airport; and
          (2) Lake County agrees to assume the obligations and 
        assurances of the grant agreements relating to the airport 
        executed by the city of Willoughby under chapter 471 of title 
        49, United States Code, and to operate and maintain the airport 
        in accordance with such obligations and assurances.
  (b) Treatment of Proceeds From Sale.--The Secretary may grant to the 
city of Willoughby an exemption from the provisions of sections 47107 
and 47133 of such title, any grant obligations of the city of 
Willoughby, and regulations and policies of the Federal Aviation 
Administration to the extent necessary to allow the city of Willoughby 
to use the proceeds from the sale approved under subsection (a) for any 
purpose authorized by the city of Willoughby.

SEC. 811. POLLOCK MUNICIPAL AIRPORT, LOUISIANA.

  (a) Findings.--Congress finds that--
          (1) Pollock Municipal Airport located in Pollock, Louisiana 
        (in this section referred to as the ``airport''), has never 
        been included in the National Plan of Integrated Airport 
        Systems pursuant to section 47103 of title 49, United States 
        Code, and is therefore not considered necessary to meet the 
        current or future needs of the national aviation system; and
          (2) closing the airport will not adversely affect aviation 
        safety, aviation capacity, or air commerce.
  (b) Request for Closure.--
          (1) Approval.--Notwithstanding any other provision of law, 
        requirement, or agreement and subject to the requirements of 
        this section, the Administrator of the Federal Aviation 
        Administration shall--
                  (A) approve a request from the town of Pollock, 
                Louisiana, to close the airport as a public airport; 
                and
                  (B) release the town from any term, condition, 
                reservation, or restriction contained in a surplus 
                property conveyance or transfer document, and from any 
                order or finding by the Department of Transportation on 
                the use and repayment of airport revenue applicable to 
                the airport, that would otherwise prevent the closure 
                of the airport and redevelopment of the facilities to 
                nonaeronautical uses.
          (2) Continued airport operation prior to approval.--The town 
        of Pollock shall continue to operate and maintain the airport 
        until the Administrator grants the town's request for closure 
        of the airport.
          (3) Use of proceeds from sale of airport.--Upon the approval 
        of the request to close the airport, the town of Pollock shall 
        obtain fair market value for the sale of the airport property 
        and shall immediately upon receipt transfer all such proceeds 
        from the sale of the airport property to the sponsor of a 
        public airport designated by the Administrator to be used for 
        the development or improvement of such airport.
          (4) Relocation of aircraft.--Before closure of the airport, 
        the town of Pollock shall provide adequate time for any 
        airport-based aircraft to relocate.

SEC. 812. HUMAN INTERVENTION AND MOTIVATION STUDY PROGRAM.

  (a) In General.--Not later than 6 months after the date of enactment 
of this Act, the Administrator of the Federal Aviation Administration 
shall develop a human intervention and motivation study program for 
flight crewmembers involved in air carrier operations in the United 
States under part 121 of title 14, Code of Federal Regulations.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2008 through 2011. Such sums shall remain 
available until expended.

SEC. 813. WASHINGTON, D.C., AIR DEFENSE IDENTIFICATION ZONE.

  (a) Submission of Plan to Congress.--Not later than 90 days after the 
date of enactment of this Act, the Administrator of the Federal 
Aviation Administration, in coordination with Secretary of Homeland 
Security and Secretary of Defense, 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 
plan for the Washington, D.C., Air Defense Identification Zone.
  (b) Contents of Plan.--The plan shall outline specific changes to the 
Washington, D.C., Air Defense Identification Zone 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. 814. MERRILL FIELD AIRPORT, ANCHORAGE, ALASKA.

  (a) In General.--Notwithstanding any other provision of law, 
including the Federal Airport Act (as in effect on August 8, 1958), the 
United States releases, without monetary consideration, all 
restrictions, conditions, and limitations on the use, encumbrance, or 
conveyance of certain land located in the municipality of Anchorage, 
Alaska, more particularly described as Tracts 22 and 24 of the Fourth 
Addition to the Town Site of Anchorage, Alaska, as shown on the plat of 
U.S. Survey No. 1456, accepted June 13, 1923, on file in the Bureau of 
Land Management, Department of Interior.
  (b) Grants.--Notwithstanding any other provision of law, the 
municipality of Anchorage shall be released from the repayment of any 
outstanding grant obligations owed by the municipality to the Federal 
Aviation Administration with respect to any land described in 
subsection (a) that is subsequently conveyed to or used by the 
Department of Transportation and Public Facilities of the State of 
Alaska for the construction or reconstruction of a federally subsidized 
highway project.

SEC. 815. WILLIAM P. HOBBY AIRPORT, HOUSTON, TEXAS.

  It is the sense of Congress that the Nation--
          (1) supports the goals and ideals of the 1940 Air Terminal 
        Museum located at William P. Hobby Airport in the city of 
        Houston, Texas;
          (2) congratulates the city of Houston and the 1940 Air 
        Terminal Museum on the 80-year history of William P. Hobby 
        Airport and the vital role of the airport in Houston's and the 
        Nation's transportation infrastructure; and
          (3) recognizes the 1940 Air Terminal Museum for its 
        importance to the Nation in the preservation and presentation 
        of civil aviation heritage and recognizes the importance of 
        civil aviation to the Nation's history and economy.

                         Purpose of Legislation

    The bill, as amended, reauthorizes programs of the Federal 
Aviation Administration (``FAA'') and makes a number of changes 
in aviation laws to increase the safety, efficiency, and 
capacity of the aviation system.

                  Background and Need for Legislation

    The Airport Improvement Program (``AIP'') is funded by 
contract authority that is provided in FAA authorizing 
legislation, rather than in annual appropriations acts. 
Therefore, if the AIP is not reauthorized, airports will not be 
able to receive any grants from the Airport and Airways Trust 
Fund (``Trust Fund'') after September 30, 2007. This sets AIP 
apart from the other programs funded from the Trust Fund. While 
the other programs should be reauthorized as well, they can 
receive funding if an appropriations act is passed.
    Programs providing Federal aid to airports began in 1946 
and have been modified several times. The Trust Fund was 
created in 1970. The current AIP program began in 1982.
    AIP is funded entirely by the Trust Fund. The Trust Fund, 
in turn, is supported entirely by the following taxes on 
aviation users:
           7.5 percent passenger ticket tax;
           $3.40 passenger flight segment fee (does not 
        apply to passengers departing from rural airports which 
        are defined as those that have less than 100,000 
        passengers per year);
           6.25 percent freight waybill tax;
           $15.10 international departure and arrival 
        taxes;
           7.5 percent frequent flyer award tax; and
           Aviation fuel taxes as follow: 4.3 cents on 
        commercial aviation; 19.3 cents on general aviation 
        gasoline; and 21.8 cents on general aviation jet fuel.
    The Trust Fund receipts totaled $10.6 billion at the 
beginning of fiscal year (FY) 2006 ($11.1 billion including 
interest), with approximately $5.5 billion of this total 
derived from the 7.5 percent passenger ticket tax. The FAA 
estimates that, under the current tax structure, FY 2008 
receipts will equal approximately $12.1 billion.
    In addition to AIP, the Trust Fund also fully funds the 
FAA's Facilities and Equipment (F&E) and Research, Engineering, 
and Development (RE&D) accounts. The Trust Fund also partially 
pays for the salaries, expenses, and operations of the FAA. The 
Trust Fund share of the FAA Operations account varies from year 
to year depending on Trust Fund forecasted receipts and the 
amount spent on AIP, F&E and RE&D. Although most of the FAA's 
budget is derived from the Trust Fund, it also receives funding 
from the General Fund. The size of the General Fund 
contribution has varied significantly over time. Over the past 
20 years (1988-2007), the General Fund contribution has 
averaged 25 percent of the FAA's total budget. Over the past 10 
years (1998-2007), it has averaged 18 percent.
    In 2007, FAA programs received the following amounts from 
the Trust Fund:
           AIP--$3.5 billion;
           F&E--$2.5 billion;
           FAA Operations--$5.6 billion from the Trust 
        Fund (the remaining $2.7 billion of the $8.3 billion 
        FAA operating budget comes from the General Fund); and
           RE&D--$130 million.

                   TRUST FUND PROCEDURAL PROTECTIONS

    The Airport and Airway Trust Fund was created in 1970 to 
provide a stable long-term source of funding to develop our 
nation's airports and air traffic control system. The concept 
was that taxes would be imposed on users of the system, 
particularly airlines and their passengers, and general 
aviation. The revenues from users would be placed in a Trust 
Fund where they would be used promptly and exclusively for 
improvements in aviation infrastructure.
    Problems developed with this mechanism in the 1980s. 
Because the revenues and expenditures of the Trust Fund are 
part of the overall budget, if the Trust Fund does not spend 
all of its revenues the ``surplus'' helps offset deficits in 
the rest of the general budget. As a result, chronic 
underfunding of critical investment in aviation infrastructure 
occurred. The uncommitted balance in the Trust Fund continued 
to grow, reaching a peak of $7.7 billion in 1991. This meant 
that there were billions of dollars in the Trust Fund unused 
even though there were significant needs to expand airport 
capacity and modernize the air traffic control system. The 
Trust Fund surplus was reduced by spending more Trust Fund 
money on FAA Operations, despite formulas in the law that 
intended to give priority to the capital programs.
    For many years, the Committee on Transportation and 
Infrastructure (``Committee'') and the aviation community 
sought to ensure that the money aviation users paid into the 
Trust Fund would actually be used for aviation infrastructure 
improvements. In the 1980s and 1990s, legislation was 
introduced to take the aviation trust fund off budget, but none 
was enacted.
    In 1999, another effort was launched to unlock the Trust 
Fund. This effort culminated in the enactment of the Wendell H. 
Ford Aviation Investment and Reform Act for the 21st Century 
(``AIR 21'') (P.L. 106-181) on April 5, 2000. While the Trust 
Fund remained on budget, AIR 21, through a series of procedural 
points of order, ensured that every dollar aviation users pay 
into the Trust Fund was actually invested in aviation programs.
    AIR 21 required: (1) that the total amount available for 
spending from the Trust Fund each year is equal to the Trust 
Fund receipts plus interest as estimated by the President's 
budget for that year; and (2) that the total spending on the 
two major capital programs (AIP and F&E) must be at authorized 
levels. If an appropriations bill is brought to the House or 
Senate floor that does not meet these two requirements, any 
Member can make a point of order against it and the bill may 
not be considered in that form.
    The AIR 21 funding guarantees were subsequently extended in 
Vision 100--the Century of Aviation Reauthorization Act 
(``Vision 100'') (P.L. 108-176). Since AIR 21's enactment, 
aviationinfrastructure investment has increased dramatically. 
AIP increased from $1.95 billion in 2000 to $3.5 billion in 2007 and 
F&E increased from $2 billion to $2.5 billion.
    The Trust Fund share of FAA's Operations account varies 
from year to year depending on Trust Fund receipts and the 
amount invested in capital programs. Under AIR 21 and Vision 
100, the Trust Fund share is calculated by subtracting from 
total estimated Trust Fund receipts and interest, the amount 
invested in the capital programs (AIP, F&E, and RE&D).

                              AIP FORMULA

    There are approximately 19,847 airports in the United 
States. Of those, 5,261 are open to the public. The FAA's 
National Plan of Integrated Airport System (``NPIAS'') 
identifies 3,431 airports that are significant to the national 
aviation system, and therefore are eligible for AIP grants. The 
NPIAS also includes a five-year estimate of the amounts of AIP 
investment needed to bring these airports up to current design 
standards and add capacity to congested airports. NPIAS 
airports account for 100 percent of passenger enplanements. In 
addition, 92 percent of all general aviation aircraft are based 
at these airports, and 98 percent of the population resides 
within 20 miles of these airports.
    AIP grants are distributed by formulas that are set forth 
in the law. These formulas are described below.

Entitlements

    The law divides AIP money into two broad categories: 
entitlement funds and discretionary funds. Entitlement funds 
are further divided into four sub-categories. They are--
          Primary airport entitlements;
          Cargo airport entitlements;
          State and general aviation entitlements; and
          Alaskan airport entitlements.
            Primary airport entitlement
    Regardless of the number of passengers boarded, the minimum 
entitlement of a primary, commercial service airport is 
$650,000 per year ($1,000,000 per year if AIP is at least $3.2 
billion). Larger airports can receive a passenger entitlement 
as high as $26 million per year. There are 382 primary airports 
and 114 cargo airports that qualify for these entitlements.
    To receive the entitlement, an airport must have a project, 
such as a runway, terminal, or noise abatement project that is 
eligible for AIP funding under the law. An airport can retain 
the right to receive its entitlement money for three years 
(four years in the case of smaller airports that are classified 
as non-hub airports). Entitlement money deferred to a later 
year is referred to as carryover entitlement.
            Cargo airport entitlement
    Cargo service airports include airports that: (1) are 
served by cargo-only (freighter) aircraft with a total annual 
landed weight of more than 100 million pounds; and (2) other 
airports that the Department of Transportation (``DOT'') finds 
will be served primarily by freighter aircraft. These airports 
are entitled to share money that equals 3.5 percent of total 
AIP funds. A cargo service airport shares in this money in 
proportion to which the total landed weight of cargo-only 
aircraft landing at an airport is to the total landed weight of 
such aircraft at all cargo service airports. Landed weight 
means the weight of aircraft transporting only cargo under 
regulations prescribed by the Secretary of Transportation 
(``Secretary'').
            State apportionment/general aviation entitlement
    General aviation airports receive 20 percent of total AIP 
funds. These airports are airports that are used by private 
planes or that have only limited commercial airline service 
(less than 10,000 passengers per year).
    Each general aviation airport is entitled to receive the 
amount of money needed for their planned development as listed 
in the FAA's NPIAS. The amount of this entitlement is limited 
to $150,000 per year per airport.
    The remaining money is allocated to the States by a formula 
that takes into account the population and area of each State. 
General aviation airports that are seeking AIP money from this 
allocation usually apply directly to the FAA. Some States 
require their airports to channel their AIP applications 
through the State aviation agency. The FAA then decides which 
airports will get the money. Eight States (Illinois, Michigan, 
Missouri, North Carolina, Pennsylvania, Tennessee, Texas, and 
Wisconsin) participate in the State Block Grant program. Under 
this program, the FAA gives the State aviation agency more 
responsibility to manage its AIP allocation and the State, not 
the FAA, decides which general aviation airports will receive 
grants. States that participate in the State Block Grant 
program do not receive more funding but they do get more 
control over how it is distributed to airports in their State.
            Alaska entitlement
    By law, Alaskan airports are entitled to receive at least 
the same amount of money that they received in 1980, i.e., 
$10.5 million. If total AIP funding is at least $3.2 billion in 
a year, that amount is doubled.

                         DISCRETIONARY FUNDING

    The FAA, at its own discretion, can invest any funds 
remaining after entitlements are funded. However, this 
discretionary fund is subject to three set-asides.

Noise/environment

    The law sets aside 35 percent of AIP discretionary funds 
for noise/environmental projects.

Military airports

    Under the military airport program (``MAP''), FAA selects 
15 current or former military airports (including at least one 
general aviation airport) to share in a set-aside, which is 
equal to four percent of the discretionary fund. The purpose of 
the MAP program is to increase overall system capacity by 
promoting joint civilian-military use of military airports or 
by converting former military airports to civilian use.

Discretionary

    After the entitlements and set-asides are funded, the 
remaining money can be invested at FAA's discretion. These 
funds are often referred to as ``pure discretionary'' AIP 
money. Seventy-five percent of these discretionary funds must 
be invested in airport projects that will enhance capacity, 
safety, or security, or that will reduce noise.

                       PASSENGER FACILITY CHARGE

    In 1990, the Committee became concerned that AIP alone 
would not be able to meet the future infrastructure needs of 
U.S. airports. Consequently, the Omnibus Budget Reconciliation 
Act of 1990 (P.L. 101-508) permitted an airport to assess a fee 
on passengers. This fee is known as the passenger facility 
charge (``PFC''). PFCs are collected by the airlines and paid 
directly to the airport. They are intended to supplement AIP by 
providing more funding for runways, taxiways, terminals, gates, 
and other airport improvements.
    The 1990 law limited the PFC to $3.00. AIR 21 increased the 
PFC cap to $4.50. No airport may charge a PFC of more than 
$4.50 per passenger and no passenger has to pay more than $18 
in PFCs per round-trip regardless of the number of airports 
through which the passenger connects. No airport can charge a 
PFC until the FAA approves it.
    The FAA has approved PFCs at 365 airports and 332 were 
collecting fees as of May 2007. Last year, airports collected 
approximately $2.6 billion of PFCs. This year, airports expect 
to collect approximately $2.7 billion of PFCs.
    If a medium or large hub airport charges a $3.00 PFC, it 
must forego up to 50 percent of its AIP passenger entitlement. 
If it charges more than $3.00, it must forego 75 percent of its 
AIP passenger entitlement. The foregone entitlements go into a 
special small airport fund to be distributed as follows:
          50 percent to non-hub airports;
          25 percent to general aviation airports;
          12.5 percent to small hub airports;
          and 12.5 percent to the discretionary fund.
    As of September 1, 2007, 229 small hub, non-hub, and 
commercial service airports were approved to receive the 
maximum level of PFC, and 52 medium and large hubs were 
approved to receive the maximum PFC. The Committee continues to 
support the PFC program.

                  AIR SERVICE TO UNDERSERVED AIRPORTS

    The Committee continues to be concerned about air service 
to small- and medium-sized airports. Section 203 of AIR 21, 
codified at section 41743 of title 49, United States Code, 
included a pilot program to make grants to small communities to 
help them bolster their air service referred to as the Small 
Community Air Service Development (``SCASD'') program. This 
program was extended in Vision 100.

                  ESSENTIAL AIR SERVICE (EAS) PROGRAM

    The EAS program was created in 1978 to ensure that no 
communities lost air service as a result of the Airline 
Deregulation Act. It provides subsidies to commuter airlines to 
provide service to small communities where there are not enough 
passengers to operate profitably. Under the EAS program, DOT 
establishes a minimum level of air service for each of the 
eligible airports. The minimum level is usually two round-trips 
per day to a medium or large hub airport using 15-seat or 
larger aircraft. Eligible communities are those communities 
that were listed on an airline's certificate when the Airline 
Deregulation Act was passed. The cost of this program has 
increased from $22.9 million in 1996 to more than $109 million 
in 2007.

           H.R. 2881, THE ``FAA REAUTHORIZATION ACT OF 2007''

    H.R. 2881, the ``FAA Reauthorization Act of 2007'', 
provides historic funding levels for the FAA capital programs. 
Between FY 2008 and FY 2011, the bill provides $15.8 billion 
for the AIP, and nearly $13 billion for F&E. These robust 
funding levels will enable the FAA to modernize the air traffic 
control (``ATC'') system and make capacity enhancing 
improvements at our nation's airports. In addition, the FAA 
Reauthorization Act of 2007 also provides $37.2 billion for FAA 
Operations over the next four years.
    To combat inflation and to help airports meet increased 
capital needs, the FAA Reauthorization Act of 2007 increases 
the PFC cap from $4.50 to $7.00. According to the FAA, if every 
airport currently collecting a $4.00 or $4.50 PFC raised its 
PFC to $7.00, it would generate approximately $1.1 billion in 
additional revenue for airport development each year.
    The FAA Reauthorization Act of 2007 rejects the 
Administration's proposal to cut funding for the EAS program by 
more than one-half, to $50 million, and instead increases the 
total amount authorized for EAS each year from $127 million to 
$133 million (including $50 million derived from overflight 
fees). To improve the quality of air service received by EAS 
communities, the bill authorizes the Secretary to incorporate 
financial incentives into EAS contracts based on specified 
performance goals. To encourage increased air carrier 
participation, the bill authorizes the Secretary to enter into 
long-term EAS contracts that would provide more stability for 
participating air carriers. In contrast to the Administration's 
proposal to sunset the SCASD program on September 30, 2008, the 
bill extends the program through FY 2011, at the current 
authorized funding level of $35 million per year.
    The FAA Reauthorization Act of 2007 contains several 
environmental-related provisions, many safety provisions 
(including an increase in aviation safety inspectors), and 
increased funding, authority, accountability, and oversight of 
ATC modernization and Next Generation Air Transportation System 
(``NextGen'').

                       Summary of the Legislation


Sec. 1. Short title; table of contents

    This section provides that the short title of the Act is 
the ``FAA Reauthorization Act of 2007'' and sets out the table 
of contents for the bill.

Sec. 2. Amendments to title 49, United States Code

    This section provides that, except where otherwise 
expressly provided, any references to sections are made to 
title 49, United States Code (``USC'').

Sec. 3. Effective date

    This section provides that, unless otherwise expressly 
provided, the amendments made by this Act are effective only to 
fiscal years beginning after September 30, 2007.

                        TITLE I--AUTHORIZATIONS


                  Subtitle A--Funding of FAA Programs


Sec. 101. Airport planning and development and noise compatibility 
        planning and programs

    This section authorizes the following amounts for the FAA's 
AIP: $3.8 billion for FY 2008; $3.9 billion for FY 2009; $4.0 
billion for FY 2010; and $4.1 billion for FY 2011.

Sec. 102. Air navigation facilities and equipment

    Subsection (a) authorizes the following amounts for the 
FAA's F&E account: (1) $3.12 billion for FY 2008; (2) $3.246 
billion for FY 2009; (3) $3.259 billion for FY 2010; and (4) 
$3.353 billion for FY 2011. Subsection (b) authorizes some of 
these funds to be used for: the development of wake vortex 
mitigation systems; the development of in-flight and ground 
based weather mitigation systems; and the development and 
implementation of safety management systems (``SMS''). Runway 
incursion reduction programs are funded from F&E at $8 million 
for FY 2008, $10 million for FY 2009, and $12 million for FY 
2010 and FY 2011. Runway status light acquisition and 
installation is funded at $15 million for FY 2008, $27 million 
for FY 2009, $12 million for FY 2010 and $20 million for FY 
2011.
    The Committee strongly encourages the development of the 
SMS at the FAA and throughout the industry. The FAA should use 
the funds specified above for the development of data analysis 
tools, as well as analysis, rulemaking, and other initiatives 
both within the FAA and in partnership with industry. The FAA 
should also make every effort to extend the benefits of SMS to 
part 135 organizations.

Sec. 103. FAA operations

    Subsection (a) authorizes the following amounts for the FAA 
Operations Account: $8.726 billion for FY 2008; $8.978 billion 
for FY 2009; $9.305 billion for FY 2010; and $9.59 billion for 
FY 2011. Subsection (b) authorizes the Air Traffic Control 
Collegiate Training Initiative and the Aviation Safety 
Reporting System for such sums as may be necessary. Subsection 
(c) authorizes $4 million in FY 2008 and $6 million in each of 
fiscal years 2009 through 2011 to be appropriated to the 
Secretary, out of the Trust Fund, to fund airline data 
collection and analysis by the Bureau of Transportation 
Statistics in DOT's Research and Innovative Technology 
Administration.

Sec. 104. Funding for aviation programs

    This section continues the points of order established in 
AIR 21 in 2000. It also modifies the method for determining 
Trust Fund revenues for a year, which is the basis against 
which aviation spending is measured. Under existing law, the 
revenue target is taken exclusively from the estimates included 
in the President's Budget. There may be a variation between 
these estimates and actual revenues.
    Section 104 modifies the statutory formula to make 
available from the Trust Fund an amount equal to 95 percent of 
the estimated revenues, rather than 100 percent, until the 
actual level of revenues received for that year is known. Once 
actual revenues are known, a ``look back'' adjustment compares 
the actual revenues received by the Trust Fund to the amounts 
made available from the Trust Fund for that year, and the 
difference between the two is applied as an adjustment to the 
amount made available from the Trust Fund for the current 
budget year. The bill includes this change to have the amount 
spent from the Trust Fund better reflect actual revenues.

                 Subtitle B--Passenger Facility Charges


Sec. 111. PFC authority

    This section provides for an increase in the PFC from the 
current maximum of $4.50 to $7.00, a change that reflects not 
only the impacts of inflation since the last statutory 
increase, but is also intended to help airports meet increased 
capital needs identified in the FAA's latest NPIAS. This 
section continues the pilot program for PFC collection at non-
hub airports and also changes the word ``fee'' to ``charge'' 
throughout subtitle VII of title 49, United States Code.

Sec. 112. PFC eligibility for bicycle storage

    To facilitate intermodal access to airports by bicycle, 
this section expands PFC eligibility to include secure bicycle 
storage facilities. It also requires the FAA to submit a report 
to Congress on the progress being made by airports to install 
bicycle parking for both airport customers and employees.

Sec. 113. Noise compatibility projects

    This section authorizes the Secretary to permit PFCs to be 
used for school sound mitigation in certain school districts. 
For some schools, sound insulation and other retrofitting of 
existing buildings may not provide meaningful noise relief, and 
a new building must be constructed. Thissection defines 
eligible project costs for any new construction as limited to the 
difference in cost between constructing to ordinary building code 
standards for schools and the cost of incorporating noise mitigation 
features in the construction.

Sec. 114. Intermodal ground access project pilot program

    Under current law, PFCs may be used to fund intermodal 
ground access projects and facilities only if they are on 
airport property and dedicated 100 percent to airport use. This 
section creates a pilot program allowing up to five airports to 
use PFCs to fund ground access projects applying more flexible 
standards currently in place for airport revenue funding of 
these projects, i.e., that these projects are on airport 
property and are ``directly and substantially'' related to 
airport use. In addition, the amount of PFC revenues that can 
be dedicated to these projects is constrained by limiting the 
percentage of total project costs that may be funded by PFCs to 
the percentage of individuals using the project to gain access 
to the airport.

Sec. 115. Impacts on airports of accommodating connecting passengers

    This section requires the Secretary to study the costs 
imposed by originating and destination (``O&D'') passengers on 
an airport compared with the cost imposed by connecting 
passengers. It also requires the Secretary to report the 
results of the study to Congress within one year, and to 
recommend any appropriate changes to the PFC program, including 
whether different levels of PFCs should be imposed on 
connecting passengers and O&D passengers.

                   Subtitle C--Fees for FAA Services


Sec. 121. Update on overflights

    This section directs the Administrator of the FAA 
(``Administrator'') to update, by October 1, 2008, the 
overflight fee rates that are currently charged to operators of 
aircraft that fly in U.S.-controlled airspace, but neither take 
off nor land in the United States, to ensure that the fees 
reflect the FAA's current cost of providing services to such 
flights. These fees were initially authorized by the Federal 
Aviation Reauthorization Act of 1996 (P.L. 104-264), and the 
rates currently in effect are identical to those originally 
established by the FAA's Final Rule on Overflight Fees, dated 
August 20, 2001.

Sec. 122. Registration fees

    This section requires the Administrator to impose fees to 
pay for the costs of 11 listed activities in the areas of 
certification and registration, including registering or 
replacing an aircraft registration; issuance of aircraft 
certificates; issuance of special registrations; recording 
security interests; replacing or issuing airman certificates; 
and legal opinions for aircraft registration or recordation.
    Fees collected under this section shall, subject to 
appropriation made in advance, be credited as offsetting 
collections to the account that finances the activities and 
services for which the fee is imposed.
    The initial fee rates specified in this section reflect the 
FAA's current costs of providing each service. The FAA shall 
periodically adjust the fees established in this section when 
cost data reveal that the cost of providing the service is 
higher or lower than the cost data that were used to establish 
the fee then in effect.
    A conforming change is made to section 45302 of title 49, 
United States Code. Existing authority to collect certain 
similar fees pursuant to section 45302 is limited to any period 
in which a fee for the same service or activity is not imposed 
under section 45305.

                     Subtitle D--AIP Modifications


Sec. 131. Amendments to AIP definitions

    Subsection (a) makes several amendments to section 47102 to 
update and add terms that are used in AIP. The first amendment 
conforms the definition of airport development relating to 
firefighting and rescue equipment with a recent final 
rulemaking for airport certification requirements for airports 
serving scheduled air carrier operations in aircraft designed 
for more than nine (not 20 as in current law) passenger seats 
but less than 31 passenger seats; broadens the definition of 
airport development to include mobile fuel truck containment 
systems at a non-primary airport, if such systems are required 
by Environmental Protection Agency (``EPA'') rule; and adds a 
reference to the definition of ``terminal development'' as part 
of technical amendments to consolidate several statutory 
provisions relating to terminal development. In addition, this 
section adds as an eligible use of AIP funds the acquisition 
and installation of facilities and equipment to provide air 
conditioning, heating or electric power from terminal-based, 
non-exclusive use facilities to aircraft parked at an airport 
to reduce emissions and energy consumption.
    Subsection (b) allows AIP funds to be used to develop an 
environmental management system. Subsection (c) adds a 
definition of ``general aviation airport''. Subsection (d) adds 
a definition of ``revenue producing aeronautical support 
facilities'', which is referenced in section 47110 (allowable 
project costs), to authorize nonprimary airports to use their 
entitlements to build or rehabilitate new facilities that can 
help generate revenue. The expansion of the definition allows 
more flexibility to build these facilities. Subsection (e) adds 
a definition of ``terminal development'' consistent with 
current statutory provisions.

Sec. 132. Amendments to grant assurances

    This section changes two provisions related to required 
grant assurances (section 47107) for AIP projects. First, a 
limited exception is allowed to permit an airport owner to use 
AIP entitlement funds to move or replace a facility when the 
need to relocate or replace it is beyond the owner's control 
(such as new design standards that render the facility a safety 
hazard), a change from current law that requires the airport 
owner to bear the full cost of such a relocation.
    Second, language is added dealing with the disposition of 
proceeds from the sale of land that an airport acquired for a 
noise compatibility purpose, but no longer needs for that 
purpose. Current law requires that the Federal government's 
proportional share of the sale proceeds be reinvested in an 
approved noise compatibility project at that airport, if 
prescribed by the Secretary, or returned to the Trust Fund for 
reinvestment in other airport development or airport planning 
projects. This change further prescribes the use of the 
Government's share of the proceeds, giving priority, 
indescending order, to the following: reinvestment in another noise 
compatibility project at the airport; reinvestment in another 
environmentally related project at the airport; reinvestment in another 
otherwise eligible AIP project at the airport; transfer to another 
public airport for a noise compatibility project; and finally, payment 
to the Trust Fund.

Sec. 133. Government share of project costs

    This section makes a change to current requirements for the 
Federal Government's matching share of AIP projects costs. In 
general, current law (section 47109) provides that the Federal 
share of project costs is 75 percent at a large or medium hub 
airport; not more than 90 percent for a project funded under 
the State Block Grant program; and 90 percent at any other 
airport. A special rule is added to allow for small hub 
airports that have increased operations and are reclassified as 
medium hub airports to retain, for two years, their eligibility 
for up to a 90 percent Federal share of project costs, instead 
of the 75 percent Federal share of project costs otherwise 
required for medium hubs.
    In addition, subsection (f) adds a special rule to reduce 
the local share of project costs from 10 percent to five 
percent for certain economically distressed communities. To be 
eligible under this special rule, a community must be receiving 
subsidized air service under the EAS program and have one of 
the following economic conditions, as determined by the 
Secretary of Commerce: (1) a per capita income of 80 percent or 
less of the national average; (2) an unemployment rate that is 
at least one percent greater than the national average; or (3) 
a special need arising from actual or threatened severe 
unemployment or economic adjustment problems. These economic 
criteria are the same criteria used by the Economic Development 
Administration of the U.S. Department of Commerce to determine 
eligibility for assistance under economic development programs.

Sec. 134. Amendments to allowable costs

    Current law (section 47110) provides that most AIP-eligible 
projects lose their grant eligibility if development work has 
been undertaken before an AIP grant is awarded. Because most 
FAA AIP discretionary grants are awarded between July and 
September (after FAA determines how much AIP entitlement 
funding can be converted temporarily to discretionary grants 
within that fiscal year), this end-of-Federal-fiscal-year 
timing disadvantages AIP-eligible projects in States that have 
shorter construction seasons than other parts of the nation. 
Subsection (a) amends section 47110(b)(2) by adding a new 
subparagraph (E) that extends project grant eligibility until 
the end of the fiscal year in which work begins on otherwise 
AIP-eligible projects costs if the Secretary determines that: 
the cost was incurred before the execution of the grant 
agreement due to a short construction season; the cost is in 
accordance with an airport layout plan approved by the 
Secretary; the sponsor notifies the Secretary before 
authorizing work to commence on the project; and the sponsor's 
decision to proceed with the project in advance of a grant 
agreement does not affect its priority for allocation of funds.
    Subsection (b) adds a new subsection (d) to section 47110 
relating to the relocation of airport-owned facilities, making 
such relocation an allowable cost if: the Government's portion 
will be paid with AIP funds apportioned to the airport sponsor; 
the Secretary determines the relocation or replacement is due 
to a change in design standards; and the Secretary determines 
the change is beyond the sponsor's control. This provision is 
similar to a change made to the grant assurances section, as 
noted above.
    According to the FAA, this section is necessary to correct 
discrimination between sponsor-owned facilities that must be 
relocated and facilities owned by third parties. The current 
eligibility rules permit AIP funds to pay for the relocation or 
reconstruction of facilities that must be moved to meet FAA 
design standards if they are owned by third parties. If the 
facilities are owned by the airport sponsor, only demolition 
costs may be paid for with AIP. The FAA states that there is no 
reason to differentiate between AIP eligibility based on 
ownership of the facilities, as long as the facilities meet FAA 
design standards that were in effect at the time the facilities 
were first constructed.
    Subsection (c) clarifies that while nonprimary airports may 
use AIP funds for revenue-producing aeronautical facilities, 
such use is limited to the construction of those facilities.

Sec. 135. Uniform certification training for airport concessions under 
        disadvantaged business enterprise program

    Current law (section 47107(e)) requires that before the 
Secretary may approve an airport project grant application, the 
airport must make written assurances that the airport owner or 
operator will take necessary action to ensure to the maximum 
extent practicable at least ten percent of all businesses at 
the airport are small businesses owned and operated by socially 
and economically disadvantaged individuals defined by section 
47113(a) (or are qualified Hub-Zone Small Businesses as defined 
in section 3(p) of the Small Business Act). This section 
requires the Secretary to establish, not later than one year 
after the date of enactment, a mandatory program to train 
airport owners and operators on how to properly certify whether 
a small business in airport concessions qualifies as a small 
business concern owned and operated by socially and 
economically disadvantaged individuals. Twenty-four months 
after the date of enactment, the Secretary shall submit a 
report to Congress on the results of the training program.
    Congress has long been concerned about the need to remedy 
discrimination against businesses owned by women and minorities 
in aviation-related industries. Toward this end, Congress 
enacted and has maintained a disadvantaged business enterprise 
program (49 U.S.C. 47107(e)) for airports receiving AIP project 
grants. This program currently applies both to airport 
contracting activities and to airport concessions arrangements. 
The bill retains these provisions of current law because, 
notwithstanding some progress, both current discrimination and 
the present day effects of past discrimination are still 
prevalent in airport contracting. The Committee has collected a 
number of highly detailed disparity studies documenting such 
discrimination from airports (and other transportation agencies 
with similar contracting needs) from across the country and is 
receiving new studies as they are identified and produced. 
These studies contain both statistical and anecdotal evidence 
and demonstrate that, in every region of this country, 
minority- and women-owned contractors vital to airport 
construction and operation confront discrimination. The studies 
represent extensive and compelling evidence that the 
disadvantaged business enterprise program is still needed to 
address discrimination in aviation-related contracting.
    The Committee has paid careful attention to the 
constitutional litigation that has surrounded minority 
contracting programs, in general, and the DOT's Disadvantaged 
Business Enterprise (``DBE'') program, in particular. The 
Committee notes that DOT has worked diligently to craft 
regulations, found in 49 CFR parts 23 and 26, to ensure that 
the DBE program and the Airport Concessions Disadvantaged 
Business program are narrowly tailored to address 
discrimination against small, socially and economically 
disadvantaged businesses. Among other things, theseregulations 
require the use of race-neutral mechanisms to level the playing field 
and only allow the use of race-conscious mechanisms when race-neutral 
mechanisms alone are insufficient to level the playing field. The 
regulations also strictly prohibit quotas and require airports to both 
periodically reexamine any race-conscious goals utilized and submit 
their program goals to the FAA for review. In addition, the regulations 
ensure that white males who are socially and economic disadvantaged are 
permitted to participate in the program.

Sec. 136. Preference for small business concerns owned and controlled 
        by disabled veterans

    This section creates a preference for the use of disabled 
veteran-owned small businesses in carrying out airport 
development projects under the AIP program.

Sec. 137. Calculation of State apportionment fund

    Currently, States are entitled to 20 percent of AIP funds 
for their general aviation airports and commercial service non-
primary airports, which are distributed to States through the 
state apportionment program and directly to non-primary 
airports in those States through the non-primary entitlement 
program (``NPE''). This section separates the AIP state 
apportionment from the NPE program (which is kept intact as a 
separate program) and sets the state apportionment at 10 
percent of total AIP funding. The NPE entitlement funding 
remains intact at $150,000 per airport. The bill also provides 
for a minimum state apportionment funding level of $300 million 
per year.

Sec. 138. Reducing apportionments

    Airports that have high passenger volumes are in a position 
to make more money through a PFC rather than accepting AIP 
funding. Under current law (section 47114(f)), if a medium or 
large hub airport charges a PFC of $3.00 or less, it must 
forego up to 50 percent of its primary AIP entitlement. If one 
of these airports charges a fee greater than $3.00, it must 
forego 75 percent of its primary AIP entitlement. The foregone 
entitlements are turned back into the AIP program and divided 
between discretionary AIP (12.5 percent) and the Small Airport 
Fund (87.5 percent), which is distributed primarily to non-hub 
and general aviation airports. This section requires a large 
hub airport that charges a PFC greater than $4.50 to turn back 
100 percent of its AIP primary entitlement funding.

Sec. 139. Minimum amount for discretionary fund

    This section increases the minimum amount of the AIP 
discretionary fund and eliminates an obsolete formula. Current 
law sets that minimum at $148 million plus a calculated amount 
based on Letters of Intent prior to January 1, 1996. This 
section sets the minimum amount at $520 million. This increase 
is necessary to cover Letter of Intent commitments 
(approximately $280 million per year) and high priority safety 
and capacity projects (exclusive of the noise and environmental 
set-aside projects), which include statutorily mandated runway 
safety area improvement projects.

Sec. 140. Marshall Islands, Micronesia and Palau

    This section reauthorizes a section in Vision 100 that 
makes the sponsors of airports located in the Republic of the 
Marshall Islands (RMI), the Federated States of Micronesia 
(FSM) and Palau eligible for AIP discretionary grants and 
funding from the Small Airport Fund. These three independent 
nations were formerly part of the Trust Territory of the 
Pacific Islands, a United Nations trusteeship administered by 
the United States Navy from 1947 to 1951 and by the United 
States Department of the Interior from 1951 to 1994. The United 
States subsequently entered into a Compact of Free Association 
with each of them, under which the United States recognizes 
them as sovereign nations, but maintains responsibility for 
their defense and provides certain financial assistance. In 
2003, the Compacts for the RMI and FSM were renewed for 20 
years. The Compact for Palau expires in 2009. All three of 
these nations have requested that their eligibility to receive 
AIP funds be extended.

Sec. 141. Use of apportioned amounts

    This section amends section 47117 by changing the 
discretionary environmental set-aside from 35 percent of annual 
AIP discretionary to $300 million per year, an increase of $15 
million over previous appropriations. This section also allows 
these AIP funds to be used for projects needed to comply with 
the requirements of the Clean Water Act.

Sec. 142. Sale of private airport to public sponsor

    This section amends section 47133 (restriction on use of 
revenue) to facilitate the sale of a private airport, which has 
in the past received AIP funds for improvement projects, to a 
public entity such as a State or local government. If a private 
owner wishes to dispose of the airport, a sale to a public 
sponsor usually benefits the airport through more stable and 
reliable ownership. Under current law, if an owner of a private 
airport sells to a public entity, the proceeds of the sale must 
be treated as airport revenue with all the restrictions that 
attach to such a characterization. While this protects airport 
revenue, it also prevents a private owner from recovering his 
or her own private capital that has been invested in the 
airport. In other words, current law treats the private owner's 
capital as if it were public and to be used only for airport 
purposes. By creating an exception to such treatment, this 
section facilitates these sales without undermining revenue 
diversion protections. Specifically, this section establishes 
three criteria that must be met for the private owner to be 
able to recover his or her own private capital from the sale 
proceeds: (1) the sale must be approved by the Secretary; (2) 
funding for the public sponsor's acquisition of the airport 
land is provided by the AIP or PFC programs; and (3) the 
private owner has repaid the remaining unamortized portion of 
any AIP grant made to that airport for purposes other than land 
acquisition, plus an amount equal to the Federal share of the 
current fair market value of any land acquired with an AIP 
grant made to that airport. The amendments made by this section 
are applicable to grant assistance provided to private airports 
on or after October 1, 1996.

Sec. 143. Airport privatization pilot program

    Current law (section 47134) contains specific provisions 
for issuance of exemptions in connection with a transfer of 
airport operation to a private owner. This section authorizes 
the Secretary to exempt the selling airport sponsor from the 
revenue diversion prohibition if at least 75 percent of the 
scheduled air carriers at a primary airport approve of the sale 
or lease proceeds going ``off-airport''--a 10 percent increase 
over the current 65 percent. Further, at non-primary airports, 
the exemption would also be based on approval of at least 75 
percent of the based-aircraft owners--also a 10 percent 
increase over current law. It also would require approval of 
fee increases above the rate of inflation by 75 percent of the 
carriers serving the airport instead of 65 percent. Finally, 
itwould terminate apportionment of both entitlement and discretionary 
AIP funds for airports that receive an exemption for privatization.

Sec. 144. Airport security program

    This section increases the authorized funding level for an 
airport security program under section 47137 from $5 million to 
$8.5 million.

Sec. 145. Sunset of pilot program for purchase of airport development 
        rights

    Section 47138, enacted as part of Vision 100, established a 
pilot program (for a maximum of 10 airports) to allow grants to 
a State (or political subdivision of a State) to help purchase 
the development rights related to a privately owned, public use 
airport, so as to help keep an airport open and operating. The 
FAA states that this has not been a successful pilot program 
and this section sunsets the authority at the end of FY 2007.

Sec. 146. Extension of grant authority for compatible land use planning 
        and projects by State and local governments

    Section 47141, which was enacted as part of Vision 100, 
authorizes grants to States and local governments to support 
planning and projects with a goal of reducing non-compatible 
land uses around airports. Due to a slow start-up for the 
program, only two grants have been made to date. To test this 
concept further, this section extends this authority, now 
scheduled to sunset at the end of FY 2007, for four additional 
fiscal years.

Sec. 147. Repeal of limitations on Metropolitan Washington Airports 
        Authority

    This section repeals the limitations on the Metropolitan 
Washington Airports Authority, which oversees both Ronald 
Reagan Washington National Airport (``National Airport'') and 
Washington Dulles International Airport, to apply for AIP 
grants and collect PFCs.

Sec. 148. Midway Island Airport

    This section provides a four-year extension of the current 
Vision 100 authorization, now scheduled to expire October 1, 
2007, for the Secretary to enter into a reimbursable agreement 
with the Secretary of the Interior to provide AIP discretionary 
funds (at a maximum level of $2.5 million per fiscal year) for 
airport development projects at Midway Island Airport. Midway 
Island is critical to the safety of flights over the Pacific 
Ocean.

Sec. 149. Miscellaneous amendments

    This section makes a number of amendments to chapter 471 to 
update or clarify sections.
    Subsection (a) makes technical changes to section 47103 
regarding the NPIAS to remove obsolete language and update the 
section to conform to what the FAA is currently including in 
the NPIAS. For example, the NPIAS includes only categories of 
airports. The language in section 47103(a) that references 
``each airport'' is deleted in favor of a reference to the 
``airport system''. Similarly, further amendments to section 
47103(a) reflect that the NPIAS does not try to forecast trends 
in other transportation sectors, but instead forecasts how 
airports connect to other modes of transportation (e.g., an 
airport and a transit system). Section 47103(b) is amended to 
delete two references that are obsolete: the NPIAS does not 
consider how tall structures reduce safety and capacity (that 
is done under a separate FAA order), and the NPIAS no longer 
takes into account Short/Takeoff and Landing operations. 
Finally, in section 47103(d), the language is clarified to 
state that the NPIAS must be published every two years, not 
just the ``status'' of the plan.
    Subsection (b) adds veterans from the current Afghanistan/
Iraq conflict to the definition of those veterans eligible for 
employment preference on AIP projects.
    Subsection (c) consolidates in one section (47119), without 
substantive change, language on terminal development costs by 
moving the current text of 47110(d), regarding terminal 
development costs, to section 47119 as a new subsection (a), 
and re-designating the existing sections accordingly. This 
subsection also adds a new subsection (f) to 47119, which caps 
at $20 million the amount of discretionary AIP funds that could 
support terminal development projects at nonhub or small hub 
primary airports. Today, there is no limit on the amount of 
discretionary funds that may be used on a terminal at non-hub 
airports. The FAA found that some communities and airports 
overbuild their terminals, but that a $20 million cap (after 
normalizing for inflation) allows an airport to build a 
suitable terminal building. This subsection does not preclude 
airports from supplementing a terminal project with PFCs, 
entitlement or local funds.
    Subsection (d) conforms the requirements for the annual 
report on the AIP program to current practice as to timing for 
the submission of the report and its contents.
    Subsection (e) corrects an inaccurate cross-reference in 
section 47139 (enacted by Vision 100), under which an airport 
is able to ``bank'' emissions credits when the airport does air 
quality work that is not required, but is ``surplus.'' However, 
section 47139 references a section (47102(3)(F)), which is for 
required air quality work, not surplus work.
    Subsection (f) makes a conforming amendment to section 
46301 (FAA civil penalty assessment authority) to clarify that 
the FAA has civil penalty assessment authority regarding 
violations of section 46319, which was added by Vision 100 and 
provides for a $10,000 per day civil penalty for permanently 
closing an airport listed in the NPIAS, without 30 days notice 
to the FAA.
    Subsection (g) makes other conforming amendments and 
technical corrections related to terminal development.
    Subsection (h) removes restrictive language added by Vision 
100 that was intended to address concerns over disposal of land 
due to particular military base closures occurring at that 
time. Removal of the obsolete restriction will add to the FAA's 
effort to support the conversion of unused military airports to 
civilian use.
    Subsection (i) provides for a reference to updated versions 
of the FAA's Airport Capacity Benchmark reports (not just the 
original 2001 Report).

              TITLE II--AIR TRAFFIC CONTROL MODERNIZATION


         Subtitle A--Next Generation Air Transportation System


Sec. 201. Mission statement; sense of Congress

    This section highlights the need for the Next Generation 
Air Transportation System (``NextGen'') to accommodate the 
significant forecasted growth of aviation in the United States 
(approximately one billion U.S. passengers by 2015). This 
section also highlights the important safety, national 
security, and economic benefits of NextGen and stresses the 
need for a coherent, integrated long-term plan.

Sec. 202. Next Generation Air Transportation System Joint Planning and 
        Development Office

    This section elevates the Director of the Joint Planning 
and Development Office (``JPDO'') to the status of Associate 
Administrator of the NextGen within the FAA. It will also make 
the Associate Administrator a voting member of the Joint 
Resources Council, the FAA's decision-making body for major 
acquisitions. The FAA is also required to publish annually an 
Operational Evolution Partnership document that provides a 
description of how the FAA is implementing NextGen.
    This section also requires NextGen partner agencies to 
designate senior officials responsible for carrying out NextGen 
activities at their respective agencies. In addition, the JPDO 
is required to develop an Integrated Work Plan that will 
outline the activities required by partner agencies to achieve 
NextGen. Further, this section requires the JPDO to coordinate 
NextGen activities with the Office of Management and Budget.

Sec. 203. Next Generation Air Transportation Senior Policy Committee

    This section requires the NextGen Senior Policy Committee 
to meet at least twice each year. It also requires the 
Secretary to submit an annual report on the status of Cabinet 
agencies progress in implementing the NextGen Integrated Work 
Plan.

Sec. 204. Automatic Dependent Surveillance-Broadcast services

    In 2007, the FAA is expected to award a contract for 
Automatic Dependent Surveillance-Broadcast (``ADS-B'') 
services. The FAA intends to structure its ADS-B acquisition as 
a service contract, whereby the FAA plans to let vendors 
install, own and maintain the ground-based infrastructure. This 
section requires the FAA to submit a report detailing the 
Administration's plans and schedule for integrating ADS-B into 
the national airspace system. In addition, this section 
requires the FAA to insert provisions into the contract that 
protect the Government's interest. Specifically, this section 
mandates that the FAA insert contract provisions that: require 
the FAA's approval before the contract is assigned to or 
assumed by another entity, including any successor entity, 
subsidiary of the contractor, or other corporate entity; 
provide that the assets, equipment, hardware and software used 
in the performance of the contract be designated as critical 
national infrastructure for national security and related 
purposes; in the event of termination or material non-
performance of the contract, require the contractor to provide 
continued broadcast services for a reasonable period until the 
provision of such services can be transferred to another vendor 
or to the Government; and permit the Government to acquire or 
utilize the assets, equipment, hardware and software necessary 
to assure the continued and uninterrupted provision of ADS-B 
services for reasonable compensation.
    This section also requires an annual audit of the ADS-B 
program by the Department of Transportation Inspector General 
(DOT IG).
    The Committee believes it is important to do research into 
human factors problems related to the integration of automatic 
dependent surveillance-broadcast (ADS-B) technology into the 
national airspace system. The Committee recommends the 
establishment of an ADS-B aviation working group composed of 
avionics engineers, pilots, flight instructors, air traffic 
controllers, scientists, and educators working in collaboration 
with NASA and FAA scientists to identify, or confirm, and 
resolve human factors problems related to ADS-B, such as pilot 
difficulties and errors.

Sec. 205. Inclusion of stakeholders in air traffic control 
        modernization projects

    This section requires the FAA to establish a process for 
including and collaborating with qualified employees selected 
by each impacted exclusive collective bargaining representative 
in the planning, development and deployment of air traffic 
control modernization projects, including NextGen. In addition, 
the FAA is required to report on the implementation of this 
section within six months.

Sec. 206. GAO review of challenges associated with transforming to the 
        Next Generation Air Transportation System

    This section requires the Government Accountability Office 
(``GAO'') to conduct a study to evaluate current processes and 
acquisitions under air traffic control modernization, and 
assess collaboration and contributions of partner agencies 
working with the JPDO. GAO will also assess challenges to 
working with stakeholders, roadmaps, organizational structure, 
transitional planning, and any other issues of interest.

Sec. 207. GAO review of Next Generation Air Transportation System 
        acquisition and procedures development

    This section requires GAO to conduct a study to analyze 
acquisition of specific systems identified for implementation 
under NextGen, including: En Route Automation Modernization 
(``ERAM''); Standard Terminal Automation Replacement System/
Common Automated Radar Terminal System (``STARS/CARTS''); ADS-
B; System Wide Information Management (SWIM); and Traffic Flow 
Management Modernization (``TFM-M''). The study should assess 
the progress and challenges relating to standards, regulations, 
and procedures for NextGen as well as required navigation 
performance, area navigation, the airspace management program 
and other relevant transformational needs. Reports should be 
submitted periodically to the congressional committees of 
jurisdiction.

Sec. 208. DOT Inspector General review of operational and approach 
        procedures by a third party

    This section requires the DOT IG to assess the FAA's 
reliance on third parties for development of new operational 
and approach procedures and determine the FAA's ability 
toprovide oversight. It will also analyze whether the FAA can perform 
the same work safely without third party assistance.

Sec. 209. Expert review of enterprise architecture for Next Generation 
        Air Transportation System

    This section requires the National Research Council 
(``NRC'') to review NextGen's technical blueprint, the 
Enterprise Architecture, to highlight the activities that will 
be necessary to transition successfully to NextGen, assess 
technical, cost and schedule risk for software development 
associated with NextGen, and include judgments on how such 
risks can be mitigated. The NRC shall report to the 
Administrator. The Administrator shall submit a report to 
Congress within one year of the date of enactment.

Sec. 210. NEXTGEN testbed

    This section establishes a public-private partnership to 
explore airport-based testing for existing NextGen 
technologies. NextGen air traffic control integrated systems 
shall be installed at a site that serves a mix of general 
aviation and commercial aircraft for demonstration, operational 
research, and evaluation.

                       Subtitle B--Miscellaneous


Sec. 211. Clarification of authority to enter into reimbursable 
        agreements

    This section makes a minor change to section 106(m), to 
clarify the FAA's authority under that section (along with the 
FAA's broad contract authority under section 106(l)(6)) to 
enter into reimbursable interagency agreements). This change is 
necessary to correct any confusion resulting from language 
added to 106(m) by Congress after the terrorist attacks of 
September 11th. Congress added the last sentence in 106(m) to 
expressly allow FAA to provide services, equipment, etc. to 
other agencies ``without reimbursement''. This provision was 
intended, for example, to allow the FAA to provide services and 
personnel to the newly created Transportation Security 
Administration, without reimbursement. Such language was never 
intended to alter the FAA's pre-existing authority to enter 
into interagency agreements that required reimbursement. This 
section makes it clear that the FAA may perform work for other 
agencies ``with or without'' reimbursement.

Sec. 212. Definition of air navigation facility

    This section 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. In addition, certain 
NextGen-related acquisitions, such as a service contract to 
develop security protocols for the FAA's internet-like SWIM 
program, may not completely fit under the current definition of 
air navigation facilities.

Sec. 213. Improved management of property inventory

    This section amends section 40110(a) to make it clear that 
the FAA's current authority to purchase and sell property 
needed for airports and air navigation facilities includes the 
authority to retain funds associated with disposal of property. 
Currently, because of costs associated with disposal (e.g., 
demolition, environmental audits, and asbestos abatement), some 
extraneous properties and equipment (e.g., non-directional 
beacons, radars, and outer markers) remain in the FAA's active 
inventory for long periods of time unnecessarily. Clarifying 
that the FAA has the authority to retain proceeds from the sale 
of property allows the FAA to cover the costs of disposal and 
facilitates shutting down extraneous equipment.

Sec. 214. Clarification to acquisition reform authority

    This section repeals a provision of law that conflicts with 
the FAA's procurement reform authority that Congress granted 
the FAA in 1996. The FAA now has broad flexibility to use 
measures other than competitive procedures in various 
compelling circumstances, e.g., in response to an emergency 
such as a hurricane or other natural or man-made disaster when 
there could be multiple sources of supply but there is 
insufficient time to run a competition. This section repeals 
more restrictive conflicting language that predated the 1996 
reforms. Removing the conflicting language clarifies the FAA's 
ability to limit competition in response to an emergency, as 
noted above, or set-aside procurements for small businesses or 
disabled veteran-owned businesses or small businesses owned and 
controlled by socially and economically disadvantaged groups.

Sec. 215. Assistance to foreign aviation authorities

    This section clarifies the FAA's current authority to 
provide air traffic services abroad, whether or not the foreign 
entity to which such services are provided is private or 
governmental, and that the FAA may participate in any 
competition to provide such services. It also 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 account from which the 
expenses were incurred in providing the services.

Sec. 216. Front line manager staffing

    This section requires the Administrator to conduct a study 
on frontline manager staffing requirements in air traffic 
control facilities. The study shall take into consideration the 
number of supervisors in each facility, coverage requirements 
related to traffic, facility type, complexity of traffic and 
management, and proficiency and training required. The FAA 
Chief Operating Officer (``COO'') for air traffic control shall 
receive any determinations resulting from the study. One year 
after the date of enactment, the Administrator shall submit to 
the congressional committees of jurisdiction the results of 
this study and a description of determinations submitted to the 
COO.

Sec. 217. Flight service stations

    This section requires the FAA to establish a system to 
monitor the staffing of flight service stations and training of 
specialists, as well as any other safety or customer service 
issues relating to the vendor's performance of the contract. 
This section also requires the FAA to report on: the 
implementation of its monitoring system; any necessary changes 
to the contract to ensure safe, high quality service to 
consumers; and any contingency plans that the FAA has developed 
to ensure uninterrupted service.

                           TITLE III--SAFETY


                     Subtitle A--General Provisions


Sec. 301. Age standards for pilots

    FAA's regulations include mandatory pilot retirement at age 
60. This section allows pilots to serve in a multicrew part 121 
operation until age 65. On international flights, pilots over 
the age of 60 may pilot the plane only if there is another 
pilot in the flight deck crew who is under 60, in accordance 
with current International Civil Aviation Organization 
standards.
    This provision does not apply to any person who has 
attained 60 years of age before the date of enactment of this 
section unless the person was, on the date of enactment, a 
required flight crew member or such person was hired by an air 
carrier as a pilot on or after enactment date without credit 
for prior seniority or benefits under any labor agreement or 
employment policies of the air carrier.
    Any amendment to a labor agreement to conform to this 
provision shall be made by agreement of the air carrier and 
designated representative of the pilots and the air carrier. 
Pilots over the age of 60 must: (1) have a first-class medical 
certificate renewed every six months; (2) continue to 
participate in FAA pilot training and qualification programs 
administered by the air carrier to ensure continued acceptable 
levels of pilot skill and judgment; and (3) be administered a 
line check every six months. A line check is an evaluation 
conducted during line operation, administered by an FAA 
designated check pilot, who evaluates the pilot's airmanship 
abilities, skills, judgment, and adherence to standard 
operating procedures. However, for pilots serving as second in 
command, if he or she received and passed a simulator check 
during that same six month period, a line check during that 
period need not be conducted. Within two years of the date of 
enactment, the GAO shall report to congressional committees of 
jurisdiction concerning the effect, if any, on aviation safety 
of the modification to pilot age standards.

Sec. 302. Judicial review of denial of airman certificates

    Since the early 1990s, the FAA has had authority to seek 
judicial review of National Transportation Safety Board 
(``NTSB'') decisions that are issued under section 44709 and 
section 46301(d)(5) of title 49, United States Code, which 
involve orders of suspension and revocation, and civil 
penalties against airman. Current law does not allow the FAA to 
take an appeal for an NTSB decision for a denial of an airman 
certificate (49 USC 1153 cites section 44709 and section 46301, 
but not section 44703). This section adds corresponding 
authority to seek judicial review of NTSB decisions involving 
airman certificate denials.

Sec. 303. Release of data relating to abandoned type certificates and 
        supplemental type certificates

    Subsection (a) allows the FAA to make aircraft 
certification data relating to older aircraft available, upon 
request, to a person seeking to maintain the airworthiness of 
their aircraft, without the consent of the owner of record, if 
the FAA first determines that there has been no proprietary 
interest exercised over the data for three years, the type 
certificate owner has not been located, and that it enhances 
safety if the data were made available to aircraft operators to 
safely maintain and operate the aircraft. Subsection (b) 
extends the timeline for the FAA to begin to issue design 
organization certificates by one year from 2012 to 2013.

Sec. 304. Inspection of foreign repair stations

    This section requires the FAA to certify to Congress not 
later than one year after the date of enactment, and annually 
thereafter, that it has inspected each foreign repair station 
certificated under part 145 of the FAA's regulations at least 
twice in the preceding year.

Sec. 305. Runway incursion reduction

    This section requires the Administrator to submit a report 
to Congress containing a plan for the installation and 
deployment of systems to alert controllers and/or flight crews 
to potential runway incursions. The runway incursion reduction 
plan shall be integrated into the Operational Evolution 
Partnership document.

Sec. 306. Improved pilot licenses

    This section requires the Administrator to issue improved 
pilot licenses that are tamper-resistant, include a photograph, 
and are capable of accommodating a digital photograph, a 
biometric identifier, or any other unique identifier. The FAA 
is also required, to the extent practicable, to develop methods 
to determine whether a license has been tampered with, altered 
or counterfeited. In addition, the FAA may use designees to 
carry out this section, and must report every six months on the 
progress it has made issuing the improved licenses. This 
section is similar to section 4022 of the Intelligence Reform 
and Terrorism Prevention Act of 2004 (P.L. 108-796).

Sec. 307. Aircraft fuel tank safety improvement

    This section requires the FAA to issue a final rule 
regarding the reduction of fuel tank flammability in transport 
category aircraft no later than December 31, 2007.

Sec. 308. Flight crew fatigue

    This section requires the FAA to contract with the National 
Academy of Sciences (``Academy'') to conduct a study on pilot 
fatigue. Not later than 18 months after initiating the study, 
the Academy shall submit the report to the Administrator, with 
recommendations governing flight limitations and rest 
requirements for pilots. The FAA is required to consider the 
findings of the Academy and update, where appropriate, its 
regulations with regard to flight time limitations and rest 
requirements for pilots. This section also mandates that the 
FAA initiate a process to carry out the recommendations of the 
Civil Aerospace Medical Institute regarding flight attendant 
fatigue.

Sec. 309. OSHA standards

    This section requires the FAA Administrator, not later than 
six months after the date of enactment, to establish milestones 
with the Occupational, Safety, and Health Administration 
(``OSHA'') Administrator to complete work begun to address 
issues related to the aircraft cabin work environment. The FAA 
is directed to issue a policy statement within two years to set 
forth the circumstances in which the requirements of OSHA apply 
to crewmembers while working in anaircraft cabin. The policy 
statement must provide for the establishment of a coordinating body 
that includes both FAA and OSHA representatives to examine the 
applicability of current and proposed OSHA regulations to FAA 
activities, recommend policies for FAA inspector training, and make 
recommendations to govern the inspection and enforcement by the FAA of 
occupational health standards on-board an aircraft. The policy 
statement shall ensure that standards adopted by the FAA clearly spell 
out the circumstances in which an employer is required to take action 
to address occupational safety and health standards, the measures 
required of an employer, as well as compliance obligations of an 
employer. The FAA shall report to Congress within six months after the 
date of enactment on the milestones established.

Sec. 310. Aircraft surveillance in mountainous areas

    This section authorizes the FAA to establish a pilot 
program to improve safety and efficiency by providing 
surveillance for aircraft flying outside radar coverage in 
mountainous areas where radar surveillance may be obstructed.
    In certain areas of the country, aircraft radar 
surveillance is obstructed by mountainous terrain. According to 
the FAA, the ability to provide surveillance coverage in these 
areas would greatly improve efficiency, arrival rates and 
safety.
    For example, the Committee understands that the FAA has 
been working with the Colorado Department of Transportation 
(``CDOT'') to develop and deploy technology that would provide 
surveillance to airports located in mountainous regions. In 
March 2006, the FAA and the CDOT completed an 18 month study 
identifying technological solutions to providing radar 
surveillance coverage at those airports. The study determined 
that the preferred solution is a cooperative surveillance 
system (i.e., it requires transponders on the aircraft and 
multiple sensors on the ground) called Wide Area 
Multilateration. The FAA initially prototyped Wide Area 
Multilateration in Juneau, Alaska, as part of the Capstone 
program, where it is expected to be fully operational in 2009.
    The Committee believes that the implementation of Wide Area 
Multilateration has the potential to improve efficiency, 
arrival rates and safety. Therefore, the Committee encourages 
the FAA to continue to deploy technologies that will provide 
aircraft surveillance coverage in mountainous areas, such as 
Colorado, as well as other parts of the country.

Sec. 311. Off-airport, low-altitude aircraft weather observation 
        technology

    This section directs the Administrator to conduct, within 
one year of the date of enactment, a review of off-airport, 
low-altitude aircraft weather reporting needs, an assessment of 
technical alternatives (including automated weather observation 
stations), an investment analysis, and recommendations for 
improving weather reporting for these aircraft.

                Subsection B--Unmanned Aircraft Systems


Sec. 321. Commercial unmanned aircraft systems integration plan

    This section requires the Secretary to create a plan for 
the safe integration of commercial unmanned aircraft systems 
(``UAS'') into the national airspace system. This plan shall 
consider technologies and research, provide recommendations for 
rulemaking, recommend how best to enhance technologies and 
subsystems to ensure safety, and recommend a realistic time-
frame for UAS integration into the national airspace system as 
soon as possible, but no later than September 30, 2012. The 
plan is due to Congress within one year of the date of 
enactment, and rulemaking shall begin no later than eighteen 
months thereafter.

Sec. 322. Special rules for certain unmanned aircraft systems

    This section requires, within six months of the date of 
enactment, an assessment of whether certain UAS may operate 
safely in the national airspace system prior to completion of 
the proposed rulemaking in section 321 and the guidance in 
section 323. This assessment must define the types of UAS 
allowed and determine how they will be regulated and safely 
operate in the national airspace system.

Sec. 323. Public unmanned aircraft systems

    This section requires the Secretary, not later than nine 
months after the date of enactment, to issue guidance on the 
operation of public unmanned aircraft systems to expedite the 
issuance of the certificate of authorization process, provide a 
collaborative process with public agencies, and facilitate the 
capability of public agencies to develop and use test ranges.

Sec. 324. Definitions

    This section defines terms relating to the use of UAS 
including: certificate of authorization; detect, sense, and 
avoid capability; public unmanned aircraft system; Secretary; 
test range; unmanned aircraft; and unmanned aircraft system.

                   TITLE IV--AIR SERVICE IMPROVEMENTS


Sec. 401. Monthly air carrier reports

    This section requires the Secretary to collect and publish 
data pertaining to cancelled and diverted flights of air 
carriers. These reports will be published monthly and posted on 
the DOT website.

Sec. 402. Flight operations at Reagan National Airport

    This section increases the beyond perimeter exempted slots 
at National Airport from 24 to 34, offset by a reduction of 10 
slots within the perimeter that are currently available but 
unused. In addition, this section limits operations per hour to 
no more than 67 flights. Scheduling priorities are afforded to 
new entrant and limited incumbent air carriers for these beyond 
perimeter exemptions.

Sec. 403. EAS contract guidelines

    This section requires the Secretary to include in the 
guidelines governing the rate of compensation payable under the 
EAS program provisions under which the Secretary may: (1) 
encourage air carriers to improve air service to EAS 
communities by incorporating in EAS contracts financial 
incentives based on specified performance goals; and (2) 
execute long-term EAS contractsto encourage air carriers to 
provide service to EAS communities if it is in the public interest to 
do so.

Sec. 404. Essential air service reform

    This section increases the general fund authorization for 
the EAS program from $77 million to $83 million. This 
authorization is in addition to the $50 million currently 
authorized from the FAA's collection of overflight fees.
    In addition, subsection (b) amends current law (section 
41742) to allow overflight fees in excess of $50 million for a 
fiscal year to be available immediately for obligation and 
expenditure equally between the SCASD program and EAS.

Sec. 405. Small community air service

    This section adds an additional factor that the Secretary 
shall consider in selecting communities for participation in 
the SCASD program. Under this section, in addition to the 
existing criteria for participation in the program, the 
Secretary shall give priority to multiple communities that 
cooperate to submit a regional or multi-state application to 
improve air service. This section extends the authorization for 
the SCASD program, through fiscal year 2011, at the current 
authorized funding level of $35 million per year.
    The Committee is sensitive to concerns that grants made 
under the SCASD program may be used by an airport operator to 
compete with existing private businesses providing aviation 
services at the airport. Before making a grant under section 
41743 that would allow an airport operator to purchase fueling 
or other ground service equipment that would compete with, or 
replace, that of an existing aviation service provider already 
in service at the airport, the Secretary should consider the 
impact such a grant would have on the aviation service 
provider, and weigh that impact relative to the public interest 
that would be served by making the grant. In addition, if the 
Secretary determines that the SCASD program review currently 
being conducted by the DOT IG, or any other SCASD program 
reviews conducted in the future, demonstrate that such grants 
do not improve the quality of air service available to the 
community, then the Secretary should not make such grants in 
the future.

Sec. 406. Air passenger service improvements

    This section creates a new chapter 423 in title 49, United 
States Code, entitled Air Passenger Service Improvements. 
Except where otherwise specified, the requirements of chapter 
423 shall begin to apply 60 days after the date of enactment.
    New section 42301, Emergency Contingency Plans, requires 
that no later than 90 days after the date of enactment, air 
carriers participating in commercial air transport at medium or 
large hub airports and each operator of a medium or large hub 
airport will file emergency contingency plans with the 
Secretary for review and approval. These plans must detail how 
the air carrier will provide food, water, restroom facilities, 
cabin ventilation, and medical treatment for passengers on-
board an aircraft that is on the ground for an extended period 
of time without access to the terminal. The plans must also 
detail how facilities and gates will be shared. The Secretary 
is required to review and approve each plan submitted as well 
as any updates to those plans. Air carriers must update their 
plans every three years and airports must update their plans 
every five years.
    New section 42302, Consumer Complaints, requires the 
Secretary to establish and publicize a consumer complaints 
hotline number for the DOT Aviation Consumer Protection 
Division.
    New section 42303, Use of Insecticides on Passenger 
Aircraft, requires that no air carrier, foreign air carrier, or 
ticket agent can sell a ticket for a flight on which an 
insecticide is planned to be used in the aircraft while 
passengers are on-board the aircraft unless the air carrier, 
foreign air carrier, or ticket agent first informs the person 
purchasing the ticket of the planned use of the insecticide, 
including the name of the insecticide.

Sec. 407. Contents of competition plans

    Current law (section 47106(f)(2)) requires that no PFC or 
AIP grant be approved for a covered airport unless the airport 
has submitted to the Secretary a written competition plan. The 
competition plan requirement has resulted in the adoption by 
airports of many practices that reduce barriers to entry by new 
air carriers and expansion by smaller carriers, and enhance 
competitive access. However, covered airports have complained 
that providing information on patterns of air service and 
comparative airfare levels is burdensome, and essentially 
compels covered airports to feed DOT's data back to the FAA. 
This section eliminates those requirements because the 
information is publicly available. Furthermore, according to 
FAA officials, DOT and FAA staffs who review competition plans 
do not use fare and schedule data to evaluate whether an AIP 
grant or PFC should be approved. Rather, they review each 
airport's lease terms, such as the length of leases, use-or-
lose provisions, gate sharing requirements; the availability of 
vacant gates; and policies on assisting new entrants to gain 
access to the airports to make such determinations.

Sec. 408. Extension of competitive access reports

    Vision 100 required large and medium hub airports to file 
semi-annual competition disclosure reports with the Secretary 
(``competitive access'' reports) before receiving approval of 
an AIP grant, if the airport was unable to accommodate an 
airline's request for facility access. The report must explain 
the reason for the lack of accommodation and provide a 
timeframe for accommodation. The competitive access report 
requirement terminates on October 1, 2008; this section extends 
the current sunset provision for competitive access reports 
until October 1, 2012.

771Sec. 409. Contract tower program

    Subsection (a) provides a special rule for air traffic 
control towers that are transitioning from the FAA's Contract 
Tower Program (under which the cost of operating the tower is 
fully funded by the FAA), and the FAA's Contract Tower Cost-
Sharing Program (under which the local airport pays the portion 
of the costs that exceeds the benefits of operating the tower). 
Specifically, subsection (a) provides that, if the Secretary 
determines that an air traffic control tower that is already 
operating under the FAA's Contract Tower Program falls below a 
benefit-to-cost ratio of 1.0, then the sponsor of the airport 
at which the tower is located 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.
    Subsection (a) also provides that, if the Secretary finds 
that all or part of an amount made available to carry out the 
fully-funded Contract Tower Program is not required during a 
fiscal year, the Secretary may use such excess funds to carry 
out the Contract Tower Cost-Sharing Program.
    Subsection (b)(1) provides that, of the amount appropriated 
for FAA Operations, not more than $8.5 million for FY 2008, $9 
million for FY 2009, $9.5 million for FY 2010, and $10 million 
for FY 2011, may be used to carry out the Contract Tower Cost-
Sharing Program.
    Subsection (b)(2) provides that, if the Secretary finds 
that all or part of an amount made available to carry out the 
Contract Tower Cost-Sharing Program is not required during a 
fiscal year, the Secretary may use such excess funds to carry 
out the fully-funded Contract Tower Program.
    Subsection (c) increases the maximum Federal share of the 
cost of new contract tower construction from $1.5 million to $2 
million.
    Subsection (d) requires the Secretary to establish uniform 
standards and requirements for contract tower safety audits.

Sec. 410. Airfares for members of the Armed Forces

    This section states that it is the sense of Congress that 
each U.S. air carrier should establish for all members of the 
Armed Services on active duty, reduced air fares that are 
comparable to the lowest airfare for ticketed flights; and 
offer flexible terms that allow for such members to purchase, 
modify, or cancel tickets without time restrictions, fees and 
penalties.

Sec. 411. Medical oxygen and portable respiratory assistive devices

    This section requires the Secretary to issue a final rule 
by December 31, 2007, regarding carriage and use of passenger-
owned portable electronic respiratory assistive devices and 
other medical oxygen devices aboard commercial flights.

          TITLE V--ENVIRONMENTAL STEWARDSHIP AND STREAMLINING


Sec. 501. amendments to air tour management program

    This section makes several changes to section 40128 that 
governs commercial air tour operations over national parks. 
This section exempts parks with 50 or fewer annual air tour 
flights, with a provision for the National Park Service 
(``NPS'') Director to withdraw an exemption on a park-specific 
basis based on concerns regarding the protection of park 
resources or visitor experiences. This section also allows that 
the Director and the Administrator may enter into a voluntary 
agreement with a commercial air tour operator as an alternative 
to an air tour management plan. This section provides more 
flexibility to the FAA and NPS to increase the number of 
operations or allow new entrant air tour operators under 
interim operating authority conditions before an air tour 
management plan has been established at a park. The additional 
interim operating flexibility includes considerations by NPS of 
the environmental impacts on park resources and by the FAA of 
impacts on aviation safety and the air traffic control system. 
This section also includes a reporting requirement by 
commercial air tour operators regarding to the number of 
commercial air tours over parks.

Sec. 502. State Block Grant Program

    This section codifies current practice that State 
participants in the AIP State Block Grant Program (i.e., 
Illinois, Michigan, Missouri, North Carolina, Pennsylvania, 
Tennessee, Texas and Wisconsin) have the responsibility and 
authority to comply with environmental requirements for 
projects at non-commercial service airports within the State 
Block Grant program, and that other Federal agencies must 
recognize State environmental review analyses for Federal 
approvals, licenses, or permits related to these projects. This 
section also makes a minor change to 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. This is a ministerial change and does not impact the 
State Block Grant program or the Secretary's ability to place 
requirements on the States under section 47128.

Sec. 503. Airport funding of special studies or reviews

    Vision 100 codified the FAA's authority to enter into 
reimbursable agreements with airport sponsors to fund 
additional FAA staff and/or contract support (using airport 
funds or AIP funds received by the airport) to help streamline 
environmental reviews for airport capacity projects. This 
section broadens this authority by allowing FAA to accept such 
funds from airport sponsors to conduct special environmental 
studies for ongoing federally funded airport projects, or 
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.

Sec. 504. Grant eligibility for assessment of flight procedures

    This section encourages the implementation of 
environmentally-beneficial aircraft flight procedures at 
airports by supporting, with AIP assistance, the environmental 
review of airport-proposed procedures that are approved by the 
FAA under 14 CFR part 150, Airport Noise Compatibility 
Planning. This section also allows the FAA to accept funds, 
including AIP/PFC funds, from an airport sponsor to hire staff 
or obtain services to provide environmental reviews for new 
flight procedures that have been approved for airport noise 
compatibility planning purposes.

Sec. 505. CLEEN engine and airframe technology partnership

    This language adds a new section to chapter 475 to direct 
the FAA to enter into a cooperative agreement using a 
competitive process, with an institution, entity, or eligible 
consortium to carry out a program for the development, maturing 
and certification of continuous lower energy, emissions and 
noise (``CLEEN'') engine and airframe technology for aircraft 
over the next ten years. The performance objectives for the 
program are to: decrease greenhouse gas emissions by increasing 
fuel efficiency by 25 percent; decrease nitrogen oxide 
emissions by 50 percent without producing other gaseous or 
particle emissions; reduce noise levels by ten decibels; 
explore the viability of alternative fuels in aircraft systems; 
and determine the feasibility of retrofit or re-engine aircraft 
technologies. Annual status reports are required until the 
completion of the program.

Sec. 506. Prohibition on operating certain aircraft weighing 75,000 
        pounds or less not complying with stage 3 noise levels

    This section requires that after December 31, 2012, all 
civil subsonic jet aircraft under 75,000 pounds must meet stage 
3 noise levels within the 48 contiguous states, with some 
exceptions for temporary operations.

Sec. 507. Environmental mitigation pilot program

    This section authorizes a new pilot program to allow the 
FAA to fund six environmental mitigation demonstration projects 
at public-use airports to take promising environmental research 
concepts that have been proven in the laboratory into the 
airport environment. Eligible projects should show whether the 
technology could measurably reduce or mitigate aviation impacts 
on noise, air quality or water quality in the airport 
environment. Grants will be awarded to eligible consortia based 
on greatest reductions in aircraft noise, airport emissions, or 
water quality impacts; if it utilizes innovative concepts; or 
demonstrates a technique or technology for environmental 
mitigation is practical or capable. The Federal share of the 
project is 50 percent, not to exceed $2.5 million per project. 
Information shall be developed and published to include program 
results and ``best practices'' for reducing or mitigating 
aviation impacts on noise, air quality, or water quality in the 
vicinity of airports.

Sec. 508. Aircraft departure queue management pilot program

    This section authorizes a pilot program at 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. Airports will be selected based on the greatest fuel 
savings or air quality measured by the amount of reduced fuel 
and emissions per dollar of funds expended under the pilot 
program. The Secretary shall submit a report to congressional 
committees of jurisdiction within three years after the date of 
enactment to assess the program's greatest fuel savings and air 
quality benefits and any impacts to safety, capacity, or 
efficiency of the air traffic or airport operations. The report 
must also include an assessment of benefits and a plan for 
implementation at other airports. Not more than $5 million per 
airport may be allocated for this pilot project.

Sec. 509. High performance and sustainable air traffic control 
        facilities

    This section requires the FAA, to the maximum extent 
possible, to implement environmentally-beneficial practices for 
new construction and major renovation of air traffic control 
facilities of amounts appropriated for the FAA's F&E account, 
such sums as may be necessary may be used for this program.
    The Committee encourages the FAA to replace or retrofit 
existing support equipment at air traffic control facilities 
with equipment that seeks to achieve lower emissions and higher 
operating efficiency, including hydrogen and fuel cell energy 
systems. Further, the Committee encourages the FAA to improve 
the energy efficiency, cost effectiveness, reliability and 
environmental performance of standby and backup power systems 
at air traffic control facilities through the use of 
alternative energy technology like hydrogen and fuel cell 
systems.

Sec. 510. Regulatory responsibility for aircraft engine noise and 
        emissions standards

    This section directs the Administrator to arrange for the 
National Academy of Public Service or other independent entity 
to review, with input from the EPA and the FAA, where 
regulatory responsibility for engine noise and emissions 
standards should reside. The review shall consider: 
interrelationships between aircraft engine noise and emissions 
and the need to evaluate and address them in an integrated 
manner; which organization has the scientific expertise to 
evaluate the impact of such noise and emissions on the 
environment; which organization has the expertise to interface 
environmental performance with ensuring the highest levels of 
safety and reliability in engine performance of aircraft in 
flight; consistency with mission and regulatory authority; 
effectiveness in carrying out past aviation environmental 
responsibilities; and international responsibility to represent 
engine noise and emissions standards for civil aviation. The 
FAA shall submit the report to Congress within six months of 
the date of enactment. If a jurisdictional transfer is 
recommended, this report shall include a description of steps 
and a timeline for transfer.

Sec. 511. Production of alternative jet fuel technology for civil 
        aviation

    This section requires the Secretary to establish a research 
program related to developing jet fuel from alternative sources 
through grants or other measures. The program shall include 
participation by educational and research institutions. 
Further, the Administrator shall designate an institution as a 
Center of Excellence for Alternative Jet Fuel Research.

                TITLE VI--FAA EMPLOYEES AND ORGANIZATION


Sec. 601. Federal Aviation Administration personnel management system

    The section amends section 40122(a)(2) to modify the 
dispute resolution process for proposed changes to the FAA 
personnel management system, and replaces it with a new dispute 
resolution process. Subsection (a) of this section requires 
that if the FAA and one of its bargaining units do not reach 
agreement, the services of the Federal Mediation and 
Conciliation Service (FMCS) shall be used or the parties may 
agree to an alternative dispute resolution procedure. If 
mediation between the parties with the assistance of the FMCS 
is unsuccessful, bargaining impasses shall be submitted to 
binding interest arbitration before a three-person board 
appointed under authority of the Federal Service Impasses Panel 
(FSIP). The arbitration board would have 90 days from the date 
of appointment to render a decision. The parties would be bound 
by the decision issued by the arbitration board. If an 
agreement is reached voluntarily or at the conclusion of 
arbitration, the final agreement (other than those matters 
decided by the arbitration board), would be subject to employee 
ratification and agency head review under 5 USC Chapter 71. 
This section also clarifies that U.S. District Courts would 
have jurisdiction to enforce the requirements of this section.
    Subsection (b) of this section would apply the new dispute 
resolution process to the ongoing dispute between the National 
Air Traffic Controllers Association (NATCA) and the FAA. 
Specifically, the changes implemented by the FAA on and after 
July 10, 2005, under the old statute, would be null and void 
and the parties will be governed by their last mutual 
agreement. In addition, FAA and NATCA are required to resume 
negotiations until a new contract is adopted. If an agreement 
is not reached within 45 days after negotiations resume, then 
the dispute would begoverned by the new dispute resolution 
process under subsection (a), including the 90 day limit for the 
arbitration board to render a final decision.
    Subsection (c) is a savings clause that prohibits the FAA 
from reversing any cost of living adjustments, lump sum 
payments or leave and other benefits under the implemented 
changes, unless the reversal is calculated as part of the back 
pay calculation in subsection (d). The Administrator shall 
waive any overpayment to former employees. Subsection (d) would 
make affected employees eligible for back pay, subject to the 
availability of appropriations, not to exceed $20 million.  
Subsection (e) states that if an interim agreement is reached 
between the FAA and NATCA before the date of enactment, then 
the new agreement shall supersede any changes implemented by 
the Administrator, and subsections (b) and (d) shall not take 
effect.
    The Committee strongly believes that air traffic 
controllers were treated unfairly in 2006, when FAA broke off 
contract negotiations, refused to submit the remaining issues 
to arbitration, and imposed FAA's own terms on pay and 
benefits. Many of our colleagues on both sides of the aisle 
agreed. When legislation to send the dispute to arbitration was 
brought to the Floor of the House in June 2006, the vote was 
271 to 148 in favor; an overwhelming majority but eight votes 
short of the two-thirds needed under the special procedures 
under which the bill was considered. Moreover, the amendment 
offered to add section 601 was adopted by an overwhelming 
majority during Committee consideration of the bill. The vote 
was 53 to 16.
    Following the failed contract negotiations in April 2006, 
the FAA imposed its terms on the controllers, including a 
reduction of 30 percent in the pay bands, which define the 
maximum and minimum pay for controllers at a facility. These 
terms resulted in about 95 percent of the controllers having 
pay in excess of the maximum for their band. FAA's proposal was 
that these controllers would have their pay frozen for five 
years and would not receive government-wide cost of living 
increases in their base pay. When inflation is considered, 
these controllers would be making about 16 percent less in 2011 
than in 2006. In addition, there were other reductions in 
various forms of pay received by the controllers.
    It is clear that FAA's unilateral imposition of wages, 
hours, and other terms and conditions of employment has had a 
harmful impact on the controller workforce, including major 
morale problems and an acceleration of retirements. Since the 
end of fiscal year 2006, veteran controllers have been retiring 
at the rate of more than three a day.
    The Committee believes that it is highly important that 
there be a fair resolution of the controllers' concerns. The 
best technology in the world will not improve our air traffic 
control system if the workforce operating this technology is 
distracted by resentments over unfair treatment or if the 
system is dangerously understaffed due to accelerating 
retirements. The Committee does not want a repeat of the 
disaster of 1981, when rigid Administration policies led to 
morale problems which festered for years, culminating in a 
strike and the firing of most of the controller workforce.
    The Committee leadership devoted substantial time and 
energy to determine if a voluntary agreement could be reached 
for a new contract between FAA and the controllers. Several 
meetings were held with all of the parties and they have had 
extensive negotiations with each other. Regrettably, there are 
basic disagreements on principle that made it virtually 
impossible for there to be a voluntary agreement.
    The FAA seemed determined to begin negotiations for a new 
contract in 2011 at pay bands below those which were in effect 
in 2006. FAA apparently believes that controllers are overpaid 
on the basis of comparisons with military controllers, who have 
substantially less responsibility, and with other FAA employees 
who have important responsibilities, but do not have to make 
instant decisions, which if made incorrectly could cost 
hundreds of lives.
    The FAA's attitudes are not surprising when we recall that, 
during the negotiations in 2005 to 2006, FAA undertook an 
extensive public relations campaign to convince the general 
public that controllers were overpaid. The Committee is not 
aware of any other instance in which a Federal Government 
agency has tried to stir up public resentment against its 
employees.
    The controllers, on the other hand, while willing to 
negotiate, could not agree to a package that would leave most 
controllers with lower salaries in 2011, after adjustment for 
inflation, than in 2006. The controllers' unwillingness to 
accept these reductions is strengthened by their belief that 
these reductions are unnecessary when the transition to a less 
experienced controller workforce over the next five years 
(mainly due to retirements) means that FAA could restore most 
of the pay cuts made in 2006, without increasing its total 
expense for controllers.
    Accordingly, the Committee believes that what is needed now 
is independent, third-party arbitration to resolve this 
dispute, as well as any disputes that may arise with other FAA 
bargaining units.

Sec. 602. MSPB remedial authority for FAA employees

    This section gives the Merit Systems Protection Board the 
same remedial authority it had over employee appeals since 
March 31, 1996.

Sec. 603. FAA technical training and staffing

    Subsection (a) requires the GAO to study FAA systems 
specialists training to include: type of training they have; 
type of training they should have; FAA actions to ensure 
adequate training; vendor costs for training; FAA costs for 
training; costs of travel for training; and a recommendation on 
the best and most cost-effective approach to training FAA 
systems specialists. The study is due within one year of the 
date of enactment to the congressional committees of 
jurisdiction.
    Subsection (b) requests a study by the National Academy of 
Sciences to assess FAA assumptions and methods used to 
determine FAA systems specialist staffing needs to ensure 
proper maintenance and certification of the national airspace 
system. The study will suggest improvements or a new staffing 
model as well as assess costs and time needed to develop such a 
model. The report to Congress is due one year after contracted.

Sec. 604. Designee program

    This section requires the GAO to conduct a follow-up report 
within 18 months of the date of enactment, regarding the FAA 
response to recommendations made in GAO's October 2004 report 
on designee programs, including an assessment of improvements 
made to the designee programs since the report and any further 
action the GAO recommends to manage and increase assurances 
that designees meet the Administrator's performance standards.

Sec. 605. Staffing model for aviation safety inspectors

    The section requires the FAA to develop a staffing model 
for aviation safety inspectors by October 31, 2009, following 
the recommendations outlined in the 2007 Staffing Standards for 
Aviation Safety Inspectors report issued by the National 
Academy of Sciences. The FAA shall consult with stakeholders 
including the exclusive representative of the aviation safety 
inspectors in developing the model. Such sums as necessary are 
authorized to carry out this section.

Sec. 606. Safety critical staffing

    This section directs the Administrator to increase the 
number of Aviation Safety Inspectors in the FAA's Flight 
Standards Service. In addition, the Administrator is directed 
to increase the number of related support staff to the levels 
necessary to ensure the most efficient use of these inspectors. 
The Committee believes these increases in the inspector 
workforce are needed to address safety-critical workload 
demands. To carry out this section, the following amounts are 
authorized to be appropriated in addition to amounts authorized 
under section 103: $58 million for FY 2008, $134 million for FY 
2009, $170 million for FY 2010, and $208 million for FY 2011. 
Upon completion of the aviation safety inspector staffing 
model, pursuant to section 605, such sums as may be necessary 
to support the number of positions that such model determines 
are required, are authorized to be appropriated.

Sec. 607. Center for Excellence in aviation employment

    This section requires the FAA to develop a Center for 
Excellence focused on research and training of aviation 
employees.

Sec. 608. FAA air traffic controller staffing

    This section directs the FAA to enter into an arrangement 
with the National Academy of Sciences to conduct a study of the 
assumptions and methods used by the FAA to estimate staffing 
needs for FAA air traffic controllers. The Academy shall 
consult with the exclusive bargaining representative of the 
affected FAA employees, the FAA Administrator, and the Civil 
Aerospace Medical Institute. The report shall include 
recommendations for objective staffing standards based on 
current and future projected air traffic levels, and estimates 
of the cost and schedules for developing such standards. The 
study would also include human factors considerations relevant 
to air traffic control performance. The Academy shall transmit 
a report not later than 18 months after the date of enactment 
to the appropriate committees of jurisdiction.

Sec. 609. Assessment of training programs for air traffic controllers

    This section requires the Administrator to conduct a study 
to assess the adequacy of training programs for air traffic 
controllers. The study shall include a review of the current 
training system for air traffic controllers, an analysis of the 
competencies required of controllers under the current air 
traffic control environment, an analysis of the competencies 
that will be required under the NextGen, and an analysis of 
various training approaches available to satisfy these 
competencies. The Administrator shall submit to Congress, 
within 180 days of enactment, a report on the results of this 
study.

Sec. 610. Collegiate Training Initiative study

    This section requires the Administrator to conduct a study 
on training options for graduates of the Collegiate Training 
Initiative (``CTI'') under section 44506(c). The study must 
review the impact of providing a new controller orientation 
session for such graduates followed by on-the-job training for 
newly hired air traffic controllers. The study must analyze the 
cost effectiveness of this alternative training approach as 
well as the effect that such alternative training would have on 
the overall quality of training received by CTI graduates. The 
study is required to be submitted to the congressional 
committees of jurisdiction 180 days after the date of 
enactment.

                     TITLE VII--AVIATION INSURANCE


Sec. 701. General authority

    Current law (section 44302(f)), initially added by section 
1202 of the Homeland Security Act of 2002, as amended by P.L. 
110-5 requires the FAA, for insurance that was in effect on 
November 25, 2002, to provide U.S. airlines aviation insurance 
until September 30, 2007, from the first dollar of loss at 
capped premium rates. Subsection (a) extends this requirement 
until September 30, 2011. This requirement then becomes 
discretionary until September 30, 2017. Subsection (b) requires 
that, after December 31, 2017, such insurance be provided 
instead by an airline industry sponsored risk-sharing 
arrangement approved by the Secretary. Premiums collected by 
the Secretary from the airlines from September 22, 2001, 
through December 31, 2017, shall be transferred to such airline 
industry risk-sharing arrangement.

Sec. 702. Extension of authority to limit third party liability of air 
        carriers arising out of acts of terrorism

    Current law (section 44303(b)) allows the Secretary to 
limit an airline's third-party liability to $100 million and 
also prohibits punitive damages against either an airline or 
the Federal government for any cause resulting from a terrorist 
event. This section extends the expiration date of this 
authority, which expires on September 30, 2007, to December 31, 
2012.

Sec. 703. Clarification of reinsurance authority

    This section makes a minor clarifying change to the 
reinsurance section in title 49, United States Code, to restore 
a phrase that was altered during the recodification of the 
aviation portion of title 49 to ensure 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.

Sec. 704. Use of independent claims adjusters

    Section 44308 provides that the FAA may use commercial 
insurance carriers to underwrite insurance and adjust claims. 
This clarifying amendment adds language to section 44308(c)(1) 
to provide explicit authority for the FAA to have the option to 
use claims adjusters independent of an insurance underwriting 
agent. Having the flexibility to use an independent claims 
adjuster should, depending on the circumstances of a claim, 
avoid potential conflict of interest between a commercial 
insurance company acting as a claims adjuster for the FAA and 
its role as a provider of otherinsurance to an airline. It 
could also expedite claims both in the United States and foreign 
jurisdictions.

Sec. 705. Extension of program authority

    This section extends the basic authority of the Secretary 
to provide insurance and reinsurance under chapter 443 of title 
49 from March 30, 2008, to September 30, 2017.

                       TITLE VIII--MISCELLANEOUS


Sec. 801. Air carrier citizenship

    This section further clarifies the term ``actual control'' 
as it pertains to the definition of a ``citizen of the United 
States.'' This provision states that an air carrier shall not 
be deemed to be under the ``actual control'' of U.S. citizens 
unless U.S. citizens control all matters pertaining to the 
business and structure of the air carrier, including 
operational matters such as marketing, branding, fleet 
composition, route selection, pricing and labor relations.
    In 2005, the Bush administration, in an administrative 
proposal, attempted to accommodate the demands of the European 
Union for additional foreign control of U.S. airlines by 
proposing a rule to interpret the ``actual control'' 
requirement as only requiring control over safety, security, 
and the Civil Reserve Air Fleet program, and not requiring 
control over basic commercial decisions, such as the markets to 
be served or the rates to be charged. After several votes in 
the Congress rejecting the administration's proposed 
interpretation of ``actual control,'' the administration 
withdrew its proposal.
    The DOT has recently announced that in the future it will 
develop its policies on foreign control of U.S. airlines on a 
case-by-case basis rather than by a general rule. To guide DOT 
in its case-by-case interpretations of the requirement of 
actual control by U.S. citizens, section 801 clarifies that 
there must be actual control by U.S. citizens over all elements 
of a carrier's operations, including marketing, branding, fleet 
composition, route selection, pricing and labor relations. This 
does not mean that a U.S. air carrier may not hire foreign 
citizens to responsible positions involving these areas, so 
long as ultimate control over these decisions rests with 
citizens of the U.S. In this regard, the Committee notes that 
existing law, section 40102(a)(15), requires that the president 
of a U.S. air carrier and ``at least two-thirds of the board of 
directors and other managing officers'' must be citizens of the 
U.S.
    In addition, the requirement in section 801 that U.S. 
citizens have control over ``branding'' should not be 
interpreted to mean that an air carrier cannot have legitimate 
franchising arrangements involving foreign citizens so long as 
U.S. citizens have ultimate control over the decision to enter 
into such arrangements. In this context, however, branding and/
or franchising arrangements should not be interpreted to 
include arrangements that give foreign citizens significant 
influence over basic commercial decisions such as fleet 
composition, route selection, pricing and labor relations.

Sec. 802. Disclosure of data to Federal agencies in interest of 
        national security

    This section clarifies that the FAA has limited authority 
to release data and reports that are pulled from the FAA's 
systems of records, which are subject to the Privacy Act (5 
U.S.C. 552), to other Federal agencies in the interest of 
national security.

Sec. 803. FAA access to criminal history records and database systems

    The Federal Bureau of Investigation recently notified FAA 
that a statutory clarification is necessary for the FAA to 
continue to have access to the National Crime Information 
Center (``NCIC''), and consequently State data bases as well, 
that contain criminal history information (e.g., arrests, 
convictions, warrants, etc.). This section provides statutory 
authority for the FAA to continue to access the NCIC and 
related State criminal history databases so that FAA may 
continue to perform its critical safety and security functions. 
Specifically, certain designated FAA staff have permission to 
access Federal, State, and local law enforcement databases, use 
their radio, data link or warning systems, and receive 
Government communications, at least to the same extent and in 
the same manner as State and local police.

Sec. 804. Clarification of air carrier fee disputes

    Current law (section 47129) provides an expedited 
administrative forum for determining whether air carrier fees 
levied by airports are reasonable, in the context of a 
significant dispute brought before the Secretary. The section 
requires complaining airlines to continue to pay disputed fees, 
and prohibits the charging airport from locking out complaining 
airlines. It also requires the charging airports to provide a 
mechanism such as a bond, surety or line of credit, to 
guarantee refunds plus interest to complaining airlines of fees 
determined to be unreasonable. The DOT had treated the section 
as applying to both air carriers and foreign air carriers. The 
U.S. Court of Appeals for the District of Columbia Circuit, in 
Port Authority of New York and New Jersey v. DOT, 479 F. 3d 21 
(D.C. Cir. 2007), determined that foreign airlines are not 
covered by section 47129. This section amends current law to 
clarify the applicability of section 47129 to both air carriers 
and foreign air carriers.

Sec. 805. Study on national plan of integrated airport systems

    This section requires the Secretary to initiate a study 
within 90 days of the date of enactment to evaluate the 
formulation of the NPIAS including criteria for inclusion in 
the plan; changes to capital needs; comparison of amounts 
airports received from AIP with capital needs; and the effect 
of transfers of airport apportionments. The study must be 
submitted within 36 months of initiation and shall include 
findings, recommendations for changes to the plan, and 
recommendations for changes to methods for determining 
apportionments to airports.

Sec. 806. Express carrier employee protection

    This section amends the Railway Labor Act (``RLA'') to 
clarify that employees of an ``express carrier'' shall only be 
covered by the RLA if they are employed in a position that is 
eligible for certification under FAA's rules, such as mechanics 
or pilots, and they are actually performing that type of work 
for the express carrier. All other express carrier employees 
would be governed by the National Labor Relations Act 
(``NLRA''). In addition, this section provides that a company's 
statusas an ``air carrier'' will not provide a shield from 
coverage under the NLRA if it is also an express carrier. An express 
carrier is defined as any person whose primary business is the express 
shipment of freight or packages through an integrated network of air 
and surface transportation.
    Because of historical anomalies involving different 
companies in the express package industry, drivers and package 
handlers working for one major company in the industry do not 
have the same rights to organize and bargain collectively as 
employees performing the exact same jobs at other companies.
    The Committee believes that it is important that all truck 
delivery employees who work for express carriers providing 
integrated air and truck delivery systems be given equal 
treatment under the law.
    For example, Federal Express was organized as an airline; 
therefore, its drivers and package handlers are covered by the 
RLA. Under the RLA, workers can only organize for collective 
bargaining on a national basis, which is an enormous challenge 
in today's environment. Therefore, if Federal Express drivers 
in Virginia want to be represented by a union, they can only do 
so if drivers all over the country agree.
    By contrast, other large companies in the express industry, 
such as United Parcel Service, began by supplying only truck 
delivery service, but then evolved into providing integrated 
truck and air service, similar to Federal Express. The truck 
drivers and package handlers at these companies have continued 
to be covered by the NLRA, which allows these companies to 
organize locally for collective bargaining.
    There are no significant differences between the jobs of 
drivers and package handlers at Federal Express, and the jobs 
of such employees at other express companies. It is unfair and 
inequitable for the Federal Express employees not to have the 
same rights to organize and bargain collectively as their peers 
at other companies.
    Section 806 removes the disparity and places employees of 
major express companies on a similar footing by allowing 
drivers and package handlers at express companies to organize 
under the NLRA, while express company employees engaged in 
aviation operations would continue to be allowed to organize 
under the RLA.

Sec. 807. Consolidation and realignment of FAA facilities

    This section requires the Secretary, no later than nine 
months after the date of enactment, to establish within the FAA 
a working group to develop criteria and make recommendations 
for the realignment and consolidation of services and 
facilities, comprised of at a minimum: the FAA; air carriers; 
the general aviation community; employees of the FAA field 
facilities; and the airport community.
    The Administrator shall issue a report no later than six 
months after convening the working group that provides 
justification for each consolidation or realignment to the 
committees of jurisdiction. The Administrator will also publish 
the report in the Federal Register and allow 45 days for public 
comments. Public hearings can be held in affected communities 
should they be requested. Any interested person can file an 
objection. Not later than 60 days after the end of the public 
comment period, the Administrator shall submit final 
recommendations and public comments to the committees of 
jurisdiction. The Administrator cannot realign any facility 
until the final report is submitted to the committees of 
jurisdiction.

Sec. 808. Transportation Security Administration centralized training 
        facility feasibility study

    This section requires the Secretary of Homeland Security to 
carry out a study on the feasibility of establishing a 
centralized training center for advanced security training by 
the Transportation Security Administration. A report will be 
submitted to the committees of jurisdiction.

Sec. 809. GAO study on cooperation of airline industry in international 
        child abduction cases

    This section requires the GAO to study how the FAA could 
better ensure the collaboration and cooperation of domestic air 
carriers, foreign air carriers certified to operate in the 
United States and other Federal agencies to develop and enforce 
child safety controls for adults traveling internationally with 
children. The GAO shall also examine any liability issues 
associated with providing assistance in such investigations. 
Not later than one year after the date of enactment, the GAO 
shall submit a report to Congress on the results of the study.

Sec. 810. Lost Nation Airport, Ohio

    This section allows the City of Willoughby to sell the Lost 
Nation Airport to Lake County, Ohio, pursuant to certain 
requirements.

Sec. 811. Pollock Municipal Airport, Louisiana

    This section requires the Administrator to approve a 
request from the town of Pollock, Louisiana, to close the 
Pollock Municipal Airport, and release the town from any 
condition contained in a surplus property conveyance or 
transfer document, and from any order by the DOT on the use and 
repayment of airport revenue, that would otherwise prevent the 
closure of the airport. Upon approval of such request to close 
the airport, the town of Pollock shall obtain fair market value 
for the sale of airport property and shall transfer all 
proceeds from such sale to the sponsor of a public airport 
designated by the Administrator to be used for the development 
or improvement of such airport. The Pollock airport has never 
been included in the NPIAS and, therefore, it is not considered 
necessary to meet the current or future needs of the national 
aviation system and is not eligible to receive AIP grants.

Sec. 812. Human Intervention and Motivation Study program

    This section authorizes and expands the Human Intervention 
and Motivation Study (``HIMS'') program to combat chemical 
dependency to include all flight crewmembers involved in 
carrier operations in the United States under part 121 of the 
FAA's regulations. HIMS program development is required within 
six months of the date of enactment for such sums as are 
appropriate to carry out this program from FY 2008 through FY 
2011.

Sec. 813. Washington D.C., Air Defense Identification Zone

    This section requires that, within 90 days, the FAA 
Administrator, in coordination with the Secretary of Homeland 
Security and the Secretary of Defense, to submit a report to 
the appropriate congressional committees that outlines changes 
to the Washington D.C. Air Defense Identification Zone that 
will decrease operational impacts and improve general aviation 
access to airports in the region.

Sec. 814. Merrill Field Airport, municipality of Anchorage, Alaska

    This section allows the release of specific airport land 
without monetary consideration to the town of Anchorage, 
Alaska, for construction or reconstruction of a federally 
subsidized highway project.

Sec. 815. William P. Hobby Airport, Houston, Texas

    This section states the House of Representatives' support 
for the goals and ideals of the 1940 Air Terminal Museum and 
congratulates the City of Houston and the 1940 Air Terminal 
Museum for William P. Hobby Airport's 80-year history as a 
vital part of Houston and the Nation's transportation 
infrastructure. Congress also acknowledges the Museum's 
preservation and presentation of civil aviation heritage and 
the importance civil aviation plays in our Nation's history and 
economy.

                          ADDITIONAL MATERIALS


Flight caps at O'Hare

    The Committee believes that the cap on flights currently 
placed on O'Hare International Airport is a short-term solution 
to manage congestion and delay until enhancements from the 
O'Hare Modernization Plan (``OMP'') begin to come on-line. To 
mitigate congestion and expand capacity at O'Hare International 
Airport, the Committee believes the FAA should implement long 
term solutions that utilize the increased capacity and benefits 
expected from the OMP.
    Further, as new capacity becomes available at O'Hare 
International Airport, preference should be given to hub 
carriers, given that they temporarily agreed to a 12.5 percent 
reduction in their peak-hour schedules to reduce congestion in 
2004, and little has been done to restore or redistribute 
capacity to accommodate for that voluntary reduction.

Qualifications Based Selection (``QBS'')

    QBS is an open, competitive procurement process where firms 
compete on the basis of qualifications, past experience, and 
the specific expertise they can bring to the project. QBS is 
currently applicable to planning, architectural, and 
engineering contracts that utilize AIP funding. The Committee 
believes this process fosters creative, cost-saving, and time-
saving approaches to AIP projects. For this reason, the 
Committee encourages use of the QBS process for PFC-funded 
projects with the goal of serving the needs of all affected 
stakeholders.

Joint use airports

    The Committee believes that the DOT should continue to work 
with the Department of Defense (``DOD'') to ensure that the 
civil aviation needs of Joint Use airports are met. Where 
appropriate, the FAA should provide AIP grants to meet the 
civil aviation airside needs of Joint Use airports.

Public aircraft

    The Committee strongly believes that DOT and DOD should 
work together to better define when aircraft under contract 
with the armed forces qualify as public aircraft.

Cell phone use in-flight

    Federal Communications Commission (``FCC'') and FAA rules 
prohibit the use of cellular phones and other wireless devices 
on airborne aircraft. This ban was put in place because of 
potential interference with wireless networks on the ground. 
The Subcommittee on Aviation held a hearing on cell phone use 
on aircraft July 14, 2005, where many safety, security, and 
human factor issues were raised. Further, in March 2007, the 
FCC terminated a proceeding that it began in late 2004 to 
consider potentially lifting this ban because of insufficient 
technical information. For these reasons, the Committee 
strongly supports the current ban on cellular phones and other 
wireless devices on airborne aircraft and believes no changes 
should be made.

Denied boarding compensation

    The Committee is encouraged that the DOT is revisiting its 
rules on denied boarding compensation given that compensation 
amounts have not changed since 1978. Further, the 2006 DOT IG 
report on airline customer service highlighted this issue as 
one that needed to be addressed. The Committee strongly 
believes compensation amounts should periodically be evaluated 
by DOT, and that DOT should broaden the applicability of denied 
boarding compensation to aircraft with 30 seats or fewer, given 
the growth of regional aircraft.

Required navigation performance at Teterboro Airport

    The Committee supports the FAA's inclusion of Teterboro 
Airport (``TEB'') in Teterboro, New Jersey, among the list of 
high priority airports for the installation of at least one 
Required Navigation Performance (``RNP'') approach at the 
airport. A RNP approach will alleviate many of the concerns of 
local residents and help ease air traffic congestion in the New 
York Metropolitan area by providing a more efficient and 
continuous approach for aircraft flying into and out of TEB.

Northern Virginia congestion

    The Committee understands that the FAA is working with the 
leadership of the Metropolitan Washington Airports Authority 
and Arlington County, Virginia, on air traffic operations and 
surveillance impact issues concerning National Airport. 
Specifically, the most recent round of Base Relocations and 
Closures will have a major adverse impact on the area known as 
Crystal City in Arlington County which will require the 
redevelopment of many of the older buildings. Redevelopment of 
Crystal City, and of nearby Rosslyn, is critical to the 
economic well-being of northern Virginia, including the 
airports. The Committee commends the FAA for its efforts to 
protect national airspace assets, while accommodating 
legitimate economic and civic interests in Arlington County. 
The Committee encourages the FAA to work with Arlington County 
toward mutually agreeable, short-term solutions and to consider 
readily available and emerging technologies to develop a long-
term solution.

National airport noise and land use compatibility plan

    The Committee is aware that the Metropolitan Washington 
Airports Authority is working to resolve some technical issues 
with regard to its proposed National Airport part 150 Noise and 
Land Use Compatibility Plan and encourages the FAA to work with 
the authority to resolve these issues in a timely manner.

Cabin air quality

    The Committee is concerned with the lack of progress on the 
study of aircraft cabin air quality called for in section 815 
of Vision 100. Specifically, the Committee is interested in 
seeing completion of the projects to sample and analyze air on 
board the cabin aircraft. While some of the initial work on 
this study has been done, the vital collection and analyzing of 
air onboard the aircraft has been delayed repeatedly. The 
Committee is aware that reports continue to come in from 
passengers and flight attendants about illnesses suffered from 
what could be dangerous contaminants in the aircraft cabin air. 
To properly determine what, if any, contaminants exist in the 
air of the aircraft cabin, samples of the air on board the 
aircraft must be collected and analyzed. The Committee asks 
that the FAA take all appropriate action to guarantee 
completion of this vital research.

Animal dander allergens in aircraft cabins

    The Committee commends the FAA for issuing guidance in the 
past to air carriers on air cabin allergens and encourages air 
carriers to accommodate passengers with severe animal dander 
allergies. Because prohibiting animals will not completely 
eliminate all exposures of sensitive passengers to allergens 
introduced from other sources, including passenger clothing, in 
the cabin environment, the Committee encourages air carriers to 
communicate with passengers with severe allergies to ensure 
they are not sitting near an animal or, if necessary, provide 
another alternative. The Committee also encourages air carriers 
to train crewmembers to identify and respond to severe allergic 
reactions.

St. George airport

    To support capacity needs of the more than 400,000 
residents of Washington County, Utah, the Committee encourages 
the FAA and the City of St. George to use all available 
resources to ensure that the new St. George airport meets its 
opening date goal of January 2011.

Obstacle marking and lighting methods study completion

    The Committee is concerned by the growing number of 
reported accidents and collisions involving low flying aircraft 
striking power lines and other man-made obstacles. The FAA 
cites wire and obstruction accidents as the agency's number one 
problem for rotorcraft. The Committee is concerned about 
current obstruction marking and lighting methods, and urges the 
FAA towards timely completion of certification of new obstacle 
collision avoidance systems. The Committee encourages the FAA 
and FAA's Flight Standards division to complete its ongoing 
study to assess the safety and efficiency of audio/visual 
systems compared with existing mechanical systems for aviation 
safety and report back to Congress by December 31, 2007. Once 
certified, the FAA should describe this new standard in all 
applicable FAA orders and guidance materials.

            Legislative History and Committee Consideration

    On June 27, 2007, Representative Oberstar introduced H.R. 
2881. This bill has not been introduced in a previous Congress.
    On June 28, 2007, the Committee on Transportation and 
Infrastructure met in open session to consider H.R. 2881. An 
amendment was offered to address the FAA personnel management 
system. The amendment was agreed to by a record vote of 53 to 
16. An amendment was also offered on express carrier employee 
protection. The amendment was agreed to by a record vote of 51 
to 18, with one present vote. The Committee on Transportation 
and Infrastructure ordered the bill reported favorably to the 
House by voice vote.

                              Record Votes

    Clause 3(b) of rule XIII of the House of Representatives 
requires each committee report to include the total number of 
votes cast for and against on each record vote on a motion to 
report and on any amendment offered to the measure or matter, 
and the names of those members voting for and against. During 
consideration of H.R. 2881, an amendment was offered to address 
the FAA personnel management system. The amendment was agreed 
to by a record vote of 53 to 16. An amendment was also offered 
on express carrier employee protection. The amendment was 
agreed to by a record vote of 51 to 18, with one present vote. 
A motion to order H.R. 2881, as amended, reported favorably to 
the House was agreed to by voice vote with a quorum present.


                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(I) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance With House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included in the report.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
reauthorize the Federal Aviation Administration and make a 
number of changes in aviation laws to increase the safety, 
efficiency, and capacity of the aviation system.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the enclosed cost estimate for H.R. 2881 
from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 5, 2007.
Hon. James L. Oberstar,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2881, the FAA 
Reauthorization Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.
    Enclosure.

H.R. 2881--FAA Reauthorization Act of 2007

    Summary: H.R. 2881 would authorize appropriations, mainly 
over the 2008-2011 period, for activities of the Federal 
Aviation Administration (FAA). CBO estimates that implementing 
the bill would have a discretionary cost of $51 billion over 
the 2008-2012 period, assuming the appropriation of the 
necessary amounts. In addition, we estimate that enacting the 
bill would reduce net direct spending by $336 million over the 
2008-2012 period but increase it by $216 million over the 2008-
2017 period. Finally, CBO and the Joint Committee on Taxation 
(JCT) estimate that enacting H.R. 2881 would increase revenues 
by $18 million over the 2008-2012 period and reduce them by 
$122 million over the 2008-2017 period.
    H.R. 2881 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA), but CBO estimates that 
the total cost of those mandates would be minimal and would be 
significantly below the threshold established in that act ($66 
million in 2007, adjusted annually for inflation).
    H.R. 2881 would impose several private-sector mandates as 
defined in UMRA. The bill would impose new requirements on 
operators of certain aircraft weighing 75,000 pounds or less, 
entities registering or obtaining certification with the FAA, 
and commercial air carriers. Based on information from the FAA 
and industry sources, CBO estimates that the aggregate direct 
cost of complying with those mandates would likely exceed the 
annual threshold established by UMRA for private-sector 
mandates ($131 million in 2007, adjusted annually for 
inflation) in at least one of the first five years the mandates 
are in effect.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 2881 is shown in Table 1. The costs of 
this legislation fall primarily within budget functions 400 
(transportation) and 600 (income security).

                               TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 2881
----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2007     2008     2009     2010     2001     2012
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
 
Spending Under Current Law:
    Budget Authority/Authorization Level \1\..............   11,064      162      127      127       77       77
    Estimated Outlays \2\.................................   15,059    5,161    2,078      901      301      112
Proposed Changes:
    FAA Operations:
        Authorization Level...............................        0    8,726    8,978    9,305    9,590        0
        Estimated Outlays.................................        0    7,766    8,950    9,269    9,559    1,055
    Air Navigation Facilities and Equipment:
        Authorization Level...............................        0    3,120    3,246    3,259    3,353        0
        Estimated Outlays.................................        0    1,810    2,663    3,170    3,309    1,392
    Airport Improvement Program Outlays: \3\
        Authorization Level...............................        0        0        0        0        0        0
        Estimated Outlays.................................        0       62      134      224      320      402
    Changes to FAA Personnel Management System:
        Estimated Authorization Level.....................        0      179      126      100       72        0
        Estimated Outlays.................................        0      159      132      103       75        8
    Increased Funding for Aviation Safety Inspectors:
        Authorization Level...............................        0       58      134      170      208        0
        Estimated Outlays.................................        0       29       96      152      189      104
    Other Provisions:
        Estimated Authorization Level.....................        0       25       74       84      151        9
        Estimated Outlays.................................        0       22       59       77      132       47
        Total Changes:
            Estimated Authorization Level.................        0   12,108   12,558   12,918   13,375        9
            Estimated Outlays.............................        0    9,848   12,034   12,995   13,585    3,008
Spending Under H.R. 2881:
    Estimated Authorization Level \1\.....................   11,064   12,270   12,685   13,045   13,452       86
    Estimated Outlays.....................................   15,059   15,009   14,112   13,896   13,886    3,120
 
                                               DIRECT SPENDING \4\
 
Baseline Spending Under Current Law:
    Estimated Budget Authority \2\........................    3,725    3,725    3,725    3,725    3,725    3,725
    Estimated Outlays.....................................       40       50       50       50       50       50
Proposed Changes:
    Estimated Budget Authority............................        0     -140      106      249      393      446
    Estimated Outlays.....................................        0      -78     -140      -90      -41       13
Spending Under H.R. 2881:
    Estimated Budget Authority \4\........................    3,725    3,585    3,831    3,974    4,118    4,171
    Estimated Outlays \4\.................................       40      -28      -90      -40        9       63
 
                                             CHANGES IN REVENUES \5\
Estimated Revenues........................................        0        1       15        7        1       -6
----------------------------------------------------------------------------------------------------------------
\1\ The 2007 level is the amount appropriated for that year for FAA operations; facilities and equipment;
  research, engineering, and development; essential air service; and the Joint Planning and Development Office
  (JPDO). The 2008-2012 1evels reflect amounts authorized to be appropriated under current law for essential air
  service, small community air service, and the JPDO.
\2\ Estimated outlays under current law are from amounts appropriated for 2007 and previous years for FAA
  operations, facilities and equipment; research, engineering, and development; essential air service; and the
  Joint Planning and Development Office as well as discretionary outlays from the obligation limitations for the
  Airport Improvement Program, as assumed to continue in the budget resolution baseline.
\3\ Budget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of
  budget authority; however, outlays from that contract authority are subject to limitations on obligations
  specified in appropriation acts and are therefore discretionary.
\4\ Enacting H.R. 2881 would reduce direct spending over the 2008-2012 period, but it would increase direct
  spending by $216 million over the 2008-2017 period (see Table 2 for annual effects through 2017).
\5\ Enacting H.R. 2881 would increase revenues over the 2008-2012 period, but it would reduce revenues by $122
  million over the 2008-2017 period (see Table 2 for annual effects through 2017).
Notes.--* = between -$500,000 and $500,000; FAA = Federal Aviation Administration.

    Basis of estimate: Implementing H.R. 2881 would result in 
significant discretionary spending for aviation programs. 
Enacting the bill would reduce net direct spending and revenues 
over the next five years but increase net direct spending and 
revenues over the 2008-2017 period. For this estimate, CBO 
assumes that H.R. 2881 will be enacted near the end of fiscal 
year 2007.Outlay estimates are based on historical spending 
patterns for affected programs and on information provided by the 
Department of Transportation (DOT) and the FAA.

Spending subject to appropriation

    CBO estimates that fully funding aviation programs under 
H.R. 2881 would cost about $9.8 billion in 2008 and $51 billion 
over the 2008-2012 period. That estimate assumes that amounts 
authorized and estimated to be necessary will be provided near 
the start of each fiscal year.
    FAA Operations. H.R. 2881 would authorize appropriations 
totaling $8.7 billion in 2008 and $36.6 billion over the 2008-
2011 period for FAA operations, particularly for salaries and 
expenses related to operating the air traffic control system. 
(In comparison, the Congress provided $8.3 billion for 
operations in fiscal year 2007.) Assuming appropriation of the 
authorized amounts, CBO estimates such spending would total 
$7.8 billion in 2008 and $36.6 billion over the 2008-2012 
period.
    Air Navigation Facilities and Equipment. H.R. 2881 would 
authorize appropriations totaling $3.1 billion in 2008 and 
$13.0 billion over the 2008-2011 period for facilities and 
equipment--primarily infrastructure and systems for 
communication, navigation, and radar surveillance related to 
air travel. (In comparison, the Congress provided $2.5 billion 
for such activities during fiscal year 2007.) Assuming 
appropriation of the authorized amounts, CBO estimates that 
resulting outlays would total $1.8 billion in 2008 and $12.3 
billion over the 2008-2012 period, with additional spending 
occurring in later years.
    By authorizing appropriations for facilities and equipment 
over the 2008-2011 period, H.R. 2881 would authorize 
adjustments to contract authority for the airport improvement 
program in those years. Current law provides for increases to 
contract authority (a mandatory form of budget authority) for 
that program in any year that the amounts authorized to be 
appropriated for facilities and equipment exceed amounts 
actually provided in appropriation acts for such activities. 
Any such changes authorized under H.R. 2881 and triggered by 
annual appropriation acts would be considered changes in direct 
spending and are discussed later in this estimate (see ``Direct 
Spending'').
    Airport Improvement Program Outlays. H.R. 2881 would 
provide $3.8 billion in contract authority (a mandatory form of 
budget authority) in 2008 and $15.8 billion over the 2008-2011 
period for the Airport Improvement Program (AlP). Through that 
program, the FAA provides grants to airports for projects to 
enhance capacity and safety. Outlays of AlP contact authority 
are controlled by limitations on obligations set in annual 
appropriation acts and are therefore considered discretionary.
    CBO estimates that enacting H.R. 2881 would increase 
contract authority over levels assumed in the current budget 
resolution baseline by $1.1 billion over the 2008-2011 period 
specifically covered under H.R. 2881 and by $425 million 
annually thereafter. (See ``Direct Spending'' for a discussion 
of the budgetary treatment of AlP contract authority under the 
budget resolution baseline and for purposes of projecting costs 
under proposed legislation.)
    The legislation would make several changes, such as 
increasing the maximum federal share of certain airport 
projects and expanding eligibility criteria for AIP grants, 
that CBO expects would increase the rate of spending of AlP 
funds. In total, assuming that obligation limitations of AlP 
spending, as set forth in annual appropriation acts, are equal 
to the levels of contract authority projected under H.R. 2881, 
CBO estimates that implementing this provision would increase 
discretionary spending by $1.1 billion over the 2008-2012 
period, with additional spending occurring in later years. That 
amount includes $200 million in accelerated outlays from 
contract authority assumed in the current baseline and $900 
million in spending from additions to contract authority under 
H.R. 2881.
    Changes to the FAA Personnel Management System. Under the 
FAA's personnel system, many employees participate in 
collective bargaining units. H.R. 2881 would establish a new 
process for resolving disputes between the FAA and such units 
and apply that process to an ongoing dispute between the agency 
and certain collective bargaining units, the largest of which 
involves air traffic controllers represented by the National 
Air Traffic Controllers Association (NATCA). CBO estimates that 
fully funding those proposed changes would require additional 
appropriations of $179 million in 2008 and $477 million during 
the four-year reauthorization period covered by the bill.
    Background. In 2005, the FAA and NATCA began negotiating an 
extension of the collective bargaining agreement covering air 
traffic controllers that was originally put into effect in 1998 
and extended for two years, with minor changes, in 2003. In 
April 2006, negotiations stalled and the FAA declared an 
impasse. In the absence of a negotiated contract and under 
certain conditions, current law authorizes the agency to 
implement changes to its personnel management system. Under 
that authority, the FAA began to implement changes toward the 
end of 2006, particularly related to compensation for air 
traffic controllers. According to both the FAA and NATCA, FAA 
spending under current law--including spending resulting from 
changes to its personnel policies implemented during the past 
year--will be less than spending would have been under the 
parties' last mutual agreement.
    Changes Under H.R. 2881. Under H.R. 2881, any personnel 
policy changes implemented by the FAA after July 25, 2005, for 
collective bargaining units without current contracts would be 
null and void, and the parties would be governed by their last 
mutual agreement. The bill would specify conditions under which 
employees could receive back pay, subject to the availability 
of appropriated funds, and would specifically authorize the 
appropriation of $20 million for such payments. Under the bill, 
if appropriations are insufficient to cover all claims for such 
pay, payments would be prorated among eligible employees. H.R. 
2881 would require the FAA to resume negotiations with NATCA 
and other collective bargaining units that do not have current 
contracts. If agreements are not reached within 45 days of 
resuming negotiations, the new dispute resolution process set 
forth in the bill would apply.
    Estimated Costs. According to the FAA and NATCA, returning 
to the work and pay rules under previous mutual agreements 
would increase costs, particularly for salaries and benefits of 
employees covered by those agreements. For this estimate, CBO 
assumes that the agreements that would be reinstated upon 
enactment of H.R. 2881 would remain in effect through the first 
half of fiscal year 2008 while the dispute resolution process 
prescribed by the bill unfolds. Relative to current law, CBO 
expects that reinstating those agreements would result in 
increases to base salaries of both existing employees and 
individuals hired between the date of enactment of H.R. 2881 
and the conclusion of the dispute resolution process.
    Based on information from the FAA and NATCA, CBO estimates 
that implementing this provision would require additional 
funding of $179 million in 2008 and $477 million over the four-
year authorization period covered by H.R. 2881. That total 
includes $20 million specifically authorized for back pay and 
assumes that payments would be prorated, if necessary, as 
specified in the bill. Remaining amounts are primarily for 
sustaining higher levels of spending for compensation and 
benefits for individuals employed as of the date of enactment 
of H.R. 2881 or hired prior to the conclusion of the new 
dispute resolution process.
    For this estimate, CBO assumes that process will conclude 
within about six months of enacting H.R. 2115. Federal costs 
would be greater if that process takes longer. This estimate 
does not include potential changes (savings or increases) in 
costs for individuals hired after the conclusion of the 
process, or changes that could result from future negotiations 
from the FAA's collective bargaining units as required by H.R. 
2881.
    Increased Funding for Aviation Safety Inspectors. H.R. 2881 
would specifically authorize appropriations of $58 million in 
2008 and $570 million over the 2008-2011 period for the FAA to 
hire additional staff to inspect various aspects of the 
aviation system, such as aircraft and parts manufacturing, 
aircraft operation, aircraft safety, and cabin safety. Assuming 
appropriation of the authorized amounts, CBO estimates that 
spending would total $29 million in 2008 and $570 million over 
the 2008-2012 period.
    Offsetting Collections from Registration and Certification 
Fees. The FAA administers a regulatory program designed to 
ensure the safety of air travel. The agency oversees and 
regulates the registration of aircraft, certification of 
pilots, and other related activities. Under current law, the 
FAA issues most registrations and certificates free of charge 
or at nominal prices. CBO estimates that fees charged by the 
agency currently total about $1 million annually.
    H.R. 2881 would require the FAA to charge specific fees for 
services related to processing certain registrations and 
certificates. Based on information from the agency regarding 
the annual volume of such actions, CBO estimates that the 
proposed fees would generate discretionary offsetting 
collections totaling $50 million in 2008 and $375 million over 
the 2008-2011 reauthorization period specifically covered by 
H.R. 2881. Because H.R. 2881 would authorize the FAA to spend 
such collections, we estimate that implementing this provision 
would have no significant net effect on federal spending.
    Other Provisions. CBO estimates that implementing other 
provisions of H.R. 2881 would require appropriations totaling 
$343 million over the 2008-2012 period. (In comparison, CBO 
estimates that the Congress provided nearly $230 million for 
related programs in 2007.) That amount includes:
           $111 million for research on technologies to 
        reduce environmental impacts of operating aircraft and 
        aircraft engines;
           $105 million to extend, through 2011, the 
        authorization of appropriations totaling $35 million a 
        year for the Small Community Air Service Development 
        Program (currently authorized at that level through 
        2008);
           $50 million to continue, though 2011, 
        activities of the Joint Planning and Development 
        Office, currently authorized at $50 million a year 
        through 2010, which coordinates multiple agencies' 
        activities related to modernizing the nation's air 
        traffic control system;
           $30 million to increase, by $6 million a 
        year, the amount authorized to be appropriated for the 
        Essential Air Service program (currently permanently 
        authorized at $77 million a year);
           $22 million for data collection and analysis 
        related to aviation; and
           $25 million for various studies, reports, 
        and activities to be carried out by the FAA, DOT, and 
        other agencies.
    Assuming appropriation of amounts specified and estimated 
to be necessary, CBO estimates that fully funding those 
activities would cost $22 million in 2008 and $337 million over 
the 2008-2012 period.

Direct spending

    CBO estimates enacting H.R. 2881 would reduce direct 
spending by $336 million over the 2008-2012 period but increase 
it by $216 million over the 2008-2017 period. Those changes, 
presented in Table 2, result primarily from provisions that 
would provide additional contract authority for the AIP, 
increase direct spending of overflight fees, increase spending 
for retirement benefits for certain FAA employees, increase the 
mandatory retirement age for pilots. and extend the FAA's 
authority to sell certain insurance.
    Airport Improvement Program Contract Authority. H.R. 2881 
would provide $3.7 billion in additional contract authority for 
the AIP over the 2008-2017 period. As previously noted, 
additional spending from such contract authority would be 
controlled by obligation limitations specified in annual 
appropriation acts. Thus, outlays for the AIP are considered 
discretionary.
    Baseline Treatment of AIP Contract Authority. The Balanced 
Budget and Emergency Deficit Control Act of 1985, which 
established rules that govern the calculation of CBO's 
baseline, expired on September 30, 2006. Nevertheless, CBO 
continues to prepare baselines and estimate costs of proposed 
legislation according to the methodology prescribed in that 
law, including the requirement that funding for certain 
expiring programs--such as contract authority for AIP--be 
assumed to continue for budget projection purposes. Consistent 
with that practice, the budget resolution baseline assumes that 
AIP contract authority over the 2008-2017 period will remain at 
the 2007 level of nearly $3.7 billion.
    Net Increases to Contract Authority. Under H.R. 2881, AIP 
contract authority would total $3.8 billion in 2008 and 
increase gradually to $4.1 billion in 2011. Consistent with 
CBO's methodology for projecting contract authority under 
proposed legislation, we assume that contract authority for AIP 
would continue after 2011 and would remain at $4.1 billion 
annually over the 2012-2017 period. In total, CBO estimates 
that contract authority under H.R. 2881 would exceed levels of 
contract authority assumed in the current budget resolution 
baseline by $125 million in 2008, $1.1 billion over the four-
year period covered by the bill, and $3.7 billion over the 
2008-2017 period.

                                            TABLE 2.--EFFECTS ON DIRECT SPENDING AND REVENUES UNDER H.R. 2881
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars--
                                         ---------------------------------------------------------------------------------------------------------------
                                            2008     2009     2010     2011     2012     2013     2014     2015     2016     2017   2008-2012  2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING
 
AIP Contract Authority \1\:
    Budget Authority....................      -71      225      325      425      425      425      425      425      425      425      1,329      3,454
    Estimated Outlays...................        0        0        0        0        0        0        0        0        0        0          0          0
Increased Spending from Overflight Fees:
    Estimated Budget Authority..........        0       18       18       19       19       20       20       21       21       21         74        177
    Estimated Outlays...................        0       14       18       19       19       20       20       21       21       21         70        173
Changes to FAA Personnel Management
 System:
    Estimated Budget Authority..........        1        3        6        9       12       16       19       21       21       21         31        129
    Estimated Outlays...................        1        3        6        9       12       16       19       21       21       21         3l        129
Retirement Benefits for Pilots:
    Estimated Budget Authority..........        0        0        0        0        0        0        0        0        0        0          0          0
    Estimated Outlays...................       -9      -17      -14       -9       -8       -3        1        1        1        1        -57        -56
Aviation War-Risk Insurance:
    Estimated Budget Authority..........      -70     -140     -100      -60      -10       30       60       70       90      100       -380        -30
    Estimated Outlays...................      -70     -140     -100      -60      -10       30       60       70       90      100       -380        -30
                                         ---------------------------------------------------------------------------------------------------------------
    Total Changes:
        Estimated Budget Authority......     -140      106      249      393      446      491      524      537      557      567      1,054      3,730
        Estimated Outlays...............      -78     -140      -90      -41       13       63      100      113      133      143       -336        216
 
                                                                   CHANGES IN REVENUES
 
Estimated Revenues......................        1       15        7        1       -6      -13      -21      -27      -35      -44         18      -122
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note:  AIP = Airport Improvement Program.
\1\ Budget authority for the Airport Improvement Program is provided as contract authority, a mandatory form of budget authority; however, outlays from
  that contract authority are subject to limitations on obligations specified in appropriation acts and are therefore discretionary.

    Upon enactment, H.R. 2881 would effectively cancel balances 
of contract authority that, under current law, the agency is 
not authorized to obligate. Such ``excess'' contract authority 
reflects the cumulative difference between contract authority 
provided in prior years and obligation limitations specified in 
annual appropriation acts for those years. Based on information 
from the FAA, CBO estimates that excess contract authority at 
the start of fiscal year 2008 (when we assume H.R. 2881 will 
take effect) will total $196 million. Cancellingthose balances 
would result in a savings of contract authority that would more than 
offset the proposed increase of $125 million for 2008, reducing net 
budget authority by $71 million.
    Adjustments to AlP Contract Authority. Public Law 106-181, 
enacted in 2000, reauthorized FAA programs for fiscal years 
1999 through 2003. That law created a permanent mechanism that 
provides for an increase to AlP contract authority in any year 
that the amount authorized to be appropriated for air 
navigation and facilities exceeds the amount provided for such 
activities in an appropriation act. By authorizing 
appropriations for facilities and equipment over the 2008-2011 
period, H.R. 2881--in conjunction with that provision of 
current law--would authorize adjustments to AIP contract 
authority for those years as wel1. Any adjustment authorized 
under this legislation, once triggered by annual appropriation 
acts, would constitute new direct spending authority. All 
spending for AIP--including spending triggered by such 
adjustments--would still be subject to obligation limitations 
established in appropriation acts. Although H.R. 2881 could 
result in additional AIP contract authority of as much as $13.0 
billion over the 2008-2011 period if no appropriations were 
provided for air navigation facilities and equipment, CBO 
assumes that appropriations will equal or exceed the amounts 
authorized by the bill; thus, we project no additional 
increases to AIP contract authority under H.R. 2881.
    Increased Spending of Overflight Fees. Under current law, 
DOT has authority to spend, without further appropriation, 
revenues from overflight fees paid by air carriers to reimburse 
the FAA for costs to provide navigational support to flights 
that neither take off nor land in the United States. As 
discussed below, H.R. 2881 would increase revenues from such 
fees starting in 2009. CBO estimates that resulting increases 
in direct spending would total $173 million over the 2009-2017 
period. Under the bill, such spending would support activities 
related to enhancing air service to rural communities.
    Changes to FAA Personnel Management System. Section 601 
would modify the dispute resolution process for the proposed 
changes to the FAA's personnel management system and would 
replace it with new procedures. The new system would be used to 
address an existing dispute between the National Air Traffic 
Controllers Association and the FAA relating to the 
compensation paid to air traffic controllers. The bill would 
restore the terms of the labor contract in effect in June 2006 
until the new dispute resolution process has reached its 
conclusion.
    Assuming that the dispute resolution process would take 
most or all of the time allowed under limits established by the 
bill, this section would boost the salaries of air traffic 
controllers by awarding them annual increases for 2007 and 
2008. Those increases would raise the salary bases used in the 
calculation of retirement benefits by 7.5 percent for all new 
retirees after 2008. Based on data provided by the FAA on the 
characteristics (salary, years of service, and retirement 
system) of recent retirees and the agency's projections of 
retirements over the next decade, CBO estimates that civil 
service retirement benefits would increase by $1 million in 
2008, $31 million over the 2008-2012 period, and $129 million 
over the 2008-2017 period. This provision also would affect 
employee contributions to the Civil Service Retirement System 
which is discussed below under ``Revenues.''
    Pilots' Mandatory Retirement Age. H.R. 2881 would raise the 
mandatory retirement age for commercial pilots from age 60 to 
age 65 within 30 days of the bill's enactment. That change 
would allow pilots to continue flying for up to five additional 
years, which in some cases would enable them to accrue higher 
pension benefits or to receive higher guaranteed pension 
insurance payments from the Pension Benefit Guaranty 
Corporation (PBGC). CBO estimates that the change would reduce 
direct spending by $9 million in 2008, $57 million over the 
2008-2012 period, and $56 million over the 2008-2017 period.
    Under current law, FAA regulations require that commercial 
airline pilots retire from service when they reach age 60. 
(This standard has been in place since 1959.) As a result, age 
60 is frequently the age at which pilots begin to receive their 
pension benefits. For pilots participating in pension plans 
that have been terminated by the PBGC, the age-60 requirement 
means that many pilots will receive benefits limited to the 
agency's maximum guaranteed benefits for participants who 
retire at age 60, which is about 35 percent less than the age-
65 guarantee. (Special rules apply to participants who were 
eligible for benefits within three years of a plan's 
termination.)
    In January 2007, the FAA announced that it was initiating 
the rulemaking process that would allow it to raise the 
mandatory retirement age to age 65, a process that the agency 
indicated would likely take 18 months to 24 months.
    For this estimate, CBO assumes that the proposed increase 
in the mandatory retirement age for pilots would take place 
around the beginning of fiscal year 2008, effectively 
accelerating the implementation of the higher retirement age by 
about one year relative to current law.
    Based on data provided by the PBGC, CBO anticipates that 
about 600 pilots participating in terminated pension plans will 
turn 60 years old in fiscal year 2008, and would have the 
opportunity to continue flying until age 65 if H.R. 2881 were 
enacted. CBO expects that those pilots would continue to fly 
for up to five more years and retire at ages similar to other 
workers under Social Security. (That is, about one-third would 
begin collecting pension benefits at age 62 and about one-half 
at age 65.) The postponed retirements would reduce PBGC 
outlays--net of reimbursements from the pension plans--by $9 
million in 2008, $57 million over the 2008-2012 period, and $56 
million over the 2008-2017 period.
    However, because the PBGC guarantees are intended to be 
actuarially fair, the net impact ofthe retirement age change 
would likely be only a small increase and would result from the 
likelihood that the pilots affected would probably be significantly 
healthier than the general population of pension recipients.
    Aviation Insurance. Under current law, the FAA offers a 
commercial aviation insurance program that, in exchange for a 
premium payment, insures air carriers and certain manufacturers 
against liabilities arising from losses caused by terrorist 
events. The FAA also offers a nonpremium insurance program to 
air carriers that participate in the Civil Reserve Air Fleet 
(CRAF). The FAA's authority to operate both of those programs 
is scheduled to expire on March 30, 2008. H.R. 2881 would 
extend that authority through October 1, 2017. CBO estimates 
that extending the CRAF program through that time would have no 
significant budgetary impact; however, extending the FAA's 
authority to offer commercial aviation insurance through fiscal 
year 2017 would reduce net direct spending by $30 million over 
the 2008-2017 period. Over the long run, however, we estimate 
that extending the authority to operate the program would 
result in net costs to the federal government after 2017.
    Program Extension Through 2017. Initial savings under this 
provision of H.R. 2881 would result because the FAA would 
collect premiums in full when coverage is sold, while payments 
for expected losses would likely begin slowly and occur over 
several years. For this estimate, CBO assumes that the FAA 
would continue to offer commercial aviation insurance at rates 
that would not fully offset the government's cost of providing 
that coverage. Based on information from the FAA about current 
insurance rates, CBO estimates that increased offsetting 
receipts from premiums (which are credited against direct 
spending) would total just over $1.8 billion over the 2008-2017 
period. We also estimate that total expected losses for claims 
will total $3.3 billion, resulting in net nominal costs over 
time of $1.5 billion. Of those total claims payments, however, 
we expect that just under $1.8 billion would be spent over the 
2008-2017 period, resulting in net cash-flow savings of $30 
million over that period. Remaining cash outlays for claims 
would occur after 2017.
    CBO cannot predict how much damage terrorists might cause 
in any specific year. Instead, our estimate of the cost of 
insurance coverage under H.R. 2881 represents an expected value 
of payments from the program--a weighted average that reflects 
the probabilities of various outcomes, from zero damages up to 
very large damages due to possible future terrorist attacks. 
The expected value can be thought of as the amount of an 
insurance premium that would be necessary to just offset the 
risk of providing this insurance; indeed, our estimate of the 
expected cost for H.R. 2881 is based on private-sector premiums 
for terrorism insurance that have been adjusted for differences 
in costs faced by private insurance firms that are not borne by 
the federal government. While this cost estimate reflects CBO's 
best judgment on the basis of available information, costs are 
a function of inherently unpredictable future terrorist 
attacks. As such, actual costs could fall anywhere within an 
extremely broad range.
    Successor Program. Under H.R. 2881, after the Secretary of 
Treasury's authority to offer commercial insurance ends on 
December 31, 2017, air carriers could seek coverage through 
risk-pooling arrangements sponsored by the airline industry and 
approved by the Secretary. The bill would authorize the 
Secretary to transfer net premiums earned over the period from 
September 22, 2001, through December 31, 2017, to a nonfederal 
risk pool; any such transfers would be net of estimates of 
pending claims. Transferring those amounts to a nonfederal 
entity would be recorded in the budget as an increase in direct 
spending in fiscal year 2018. Based on information from the FAA 
about premiums collected since September 22, 2001, and 
anticipated levels of premium collections expected under H.R. 
2881, such increased spending could range from zero (if a 
covered event requires the FAA to use all premiums to pay 
claims) to nearly $3 billion (if the FAA's program incurs no 
losses through 2017).

Revenues

    CBO and JCT estimate that enacting H.R. 2881 would increase 
net revenues by $7 million over the 2008-2012 period but reduce 
them by $138 million over the 2008-2017 period. The estimated 
changes stem from provisions related to passenger facility 
fees, overflight fees, and the changes to FAA personnel 
management.
    Passenger Facility Fees. Under current law, airport 
agencies may collect, subject to DOT approval, fees of up to 
$4.50 per passenger to fund airport infrastructure programs. 
(Such fees are collected and spent by airport agencies and are 
not included in the federal budget.) H.R. 2881 would allow the 
Secretary of Transportation to authorize airport agencies to 
charge fees of up to $7.00 per passenger. JCT expects that the 
proposed change would increase revenues to airports from such 
fees, subsequently lead to increased tax-exempt financing for 
airport construction and related projects and, consequently, 
reduce federal revenues. JCT estimates that federal revenue 
losses would total $67 million over the 2008-2012 period and 
$315 million over the 2008-2017 period.
    Overflight Fees. H.R. 2881 would amend current law to 
authorize the FAA to increase fees for certain navigational 
services provided for flights that neither take off nor land in 
the United States--commonly known as overflight fees. Such fees 
are typically paid by foreign air carriers and are recorded as 
revenues. (CBO estimates that the agency will collect about $50 
million in overflight fees in 2007.) H.R. 2881 would direct the 
agency to update the amounts charged, through an expedited 
rulemaking, to fully recover its costs starting in fiscalyear 
2009. Based on information from the FAA, CBO estimates that the 
agency's costs to provide support for overflights currently exceeds 
revenues from fees by about $18 million annually. CBO estimates that 
raising fees to cover that shortfall would increase revenues by $74 
million over the 2009-2012 period and $177 million over the 2009-2017 
period. (As discussed earlier, those increased revenues would result in 
corresponding increases in direct spending for certain activities 
related to enhancing air service to rural communities.)
    Changes to FAA Personnel Management System. As discussed 
previously, the changes to the FAA management system, including 
the dispute resolution process, would result in the agency 
paying more in salaries than it would under current practices. 
Pay raises required for 2007 and 2008 would result in higher 
salaries subject to the withholding of employee contributions 
to the Civil Service Retirement trust fund. The increase in 
contributions would begin to fade out over time as those 
workers retire or otherwise leave FAA employment. The 
additional revenues would total $11 million over the 2008-2012 
period and $16 million over the 2008-2017 period.
    Estimated impact on state, local, and tribal governments: 
H.R. 2881 contains intergovernmental mandates as defined in 
UMRA, but CBO estimates that the total cost of those mandates 
would be minimal and would be significantly below the threshold 
established in that act ($66 million in 2007, adjusted annually 
for inflation).
            Contingency plans
    The bill would require certain airport operators to submit 
to DOT contingency plans for emergency circumstances that 
ground aircraft. This administrative duty is a mandate under 
UMRA, but CEO estimates that the costs of this requirement to 
airport operators would be minimal.
            Access to criminal history records
    The bill would give the FAA the right to (1) access 
criminal justice data maintained by the states, (2) use state 
or local radio, data links, or warning systems that provide 
public safety information, and (3) receive communications from 
state or local police officers. Those provisions constitute 
intergovernmental mandates as defined in UMRA because state and 
local governments would be required to comply with requests for 
information from the FAA. Although we cannot predict the extent 
to which the FAA would access state or local data systems, or 
make inquiries of state or local police officers, CBO estimates 
that the additional costs to state, local, and tribal 
governments of complying with those requests would be small.
    The bill would benefit state and local governments by 
authorizing grants to airports for planning, development, noise 
mitigation, and other initiatives. In addition, states would 
benefit from provisions that would authorize an increase in the 
passenger facility fees used to fund FAA-approved projects. Any 
costs that they might incur would result from complying with 
conditions of federal assistance.
    Estimated impact on the private sector: H.R. 2881 contains 
several private-sector mandates as defined in UMRA. Those 
mandates include:

           A prohibition on operating certain aircraft 
        not in compliance with low-noise criteria,
           A revised schedule of fees for certain 
        services and activities of the FAA, and
           Requirements on air carriers related to 
        airline service.

    Based on information from the FAA and industry sources, CBO 
estimates that the aggregate direct cost of complying with the 
bill's mandates would likely exceed the annual threshold 
established by UMRA for private-sector mandates ($131 million 
in 2007, adjusted annually for inflation) in at least one of 
the first five years the mandates are in effect.
            Prohibition on aircraft noise levels below stage 3
    The FAA classifies aircraft into three stages based on 
measurements of noise level: stage 1, stage 2, and stage 3--in 
order from loudest to the least noisy. Section 506 would 
prohibit, with certain exemptions, operation of civil aircraft 
weighing 75,000 pounds or less in the 48 contiguous states that 
do not comply with stage-3 noise levels. The prohibition would 
take affect after December 31, 2012. According to industry 
sources, compliance could require engine modifications to be 
made on existing aircraft when possible, or decommissioning of 
aircraft that cannot be modified to meet the noise requirement. 
Those sources estimate that the total cost of bringing existing 
aircraft into compliance could range from a low of $300 million 
to more than $1 billion depending on the technology used. CBO 
expects that the direct cost to comply with the mandate would 
be highest in 2012, the yearbefore the prohibition would take 
effect, and would likely exceed the UMRA's annual threshold for 
private-sector mandates in that year.
            FAA registration, certification, and related fees
    Section 122 would require the FAA to establish a new 
schedule of fees for certain services and activities of the 
agency. This requirement would impose a new mandate on entities 
who are required to register with the FAA or obtain specific 
certifications, such as aircraft owners and pilots. Based on 
the number of entities required to register with the FAA or 
obtain certification, CBO expects that the incremental cost in 
new fees for those private-sector entities would be about $44 
million per year.
            Air carriers: Airline service requirements
    The bill would impose several new requirements on air 
carriers related to airline service. Based on information from 
industry sources, CBO expects that the aggregate direct cost to 
comply with those mandates would be small relative to the 
annual threshold. .
    Section 401 would require an air carrier to file with the 
Secretary of Transportation a monthly report with specific 
information on each flight that is diverted from its scheduled 
destination to another airport and on each flight that departs 
the gate at the originating airport but is cancelled before 
take off.
    Section 406 would require each air carrier serving large 
and medium hub airports to develop and submit to the Secretary 
an emergency contingency plan for each airport it serves no 
later than 90 days after the date of enactment. Each plan would 
be required to contain a description of how the air carrier 
will provide food, water, restroom facilities, cabin 
ventilation, and access to medical treatment for passengers 
onboard an aircraft that is on the ground for an extended 
period of time without access to the terminal. The plan also 
would be required to describe how the air carrier would share 
facilities and make gates available at the airport in an 
emergency. Air carriers would be required to update the plan 
every three years and submit the updated plan to the Secretary.
    Section 406 also would prohibit an air carrier from selling 
tickets for a flight on which insecticide is planned to be used 
in the aircraft while passengers are on board the aircraft 
unless the air carrier informs such passengers purchasing the 
ticket of the planned use of the insecticide, including the 
name of the insecticide.
    Previous CBO estimate: On July 17, 2007, CBO transmitted a 
cost estimate for S. 1300, the Aviation Investment and 
Modernization Act of 2007, as ordered reported by the Senate 
Committee on Commerce, Science, and Transportation on May 16, 
2007. Many provisions of S. 1300 are substantively similar to 
H.R. 2881. Both bills would authorize appropriations for major 
FAA programs over the 2008-2011 period.
    Differences in our estimates of spending subject to 
appropriation reflect differences in amounts authorized to be 
appropriated to the FAA. The estimate of spending under H.R. 
2881 is higher, primarily because it would provide more funding 
than S. 1300 for facilities and equipment and aviation safety 
inspectors.
    Direct spending estimates related to AlP contract 
authority, spending of overflight fees, retirement benefits for 
pilots, and aviation war-risk insurance are the same under H.R. 
2881 and S. 1300. In total, S. 1300 would result in a greater 
increase in net direct spending than H.R. 2881, primarily 
because S. 1300 would provide new direct spending authority for 
FAA to modernize the U.S. air traffic control system. S. 1300 
also would establish a new surcharge intended to offset such 
increased spending, but CBO estimates such fees would not fully 
offset the increased spending over the 2008-2017 period.
    While CBO and the JCT estimate that enacting S. 1300 would 
increase revenues over the 2008-2017 period, we estimate that 
H.R. 2881 would reduce revenues during that time, primarily 
because it would lead to a greater increase in airport 
agencies' use of tax-exempt financing and, consequently, larger 
reductions in federal revenues.
    CBO estimates both H.R. 2881 and S. 1300 would impose 
several new private-sector mandates with aggregate direct costs 
that would exceed UMRA' s annual threshold. The mandate 
provisions prohibiting the operation of certain aircraft below 
stage-3 noise levels and requiring air carriers to provide 
contingency plans related air passenger service improvements 
are contained in both bills. S. 1300 also contains private-
sector mandates--per-flight surcharge and safety requirements 
on certain helicopters--not contained in H.R. 2881.
    Estimate prepared by: Federal Costs: FAA spending--Megan 
Carroll; Retirement Benefits--David Rafferty; Revenues--Andrew 
Langan; Impact on state, local, and tribal governments: 
Elizabeth Cove; Impact on the private sector: Paige Piper/Bach 
and Justin Hall.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis; G. Thomas Woodward, Assistant Director for 
Tax Analysis.

                     Compliance With House Rule XXI

    Pursuant to clause 9 of rule XXI of the Rules of the House 
of Representatives, H.R. 2881, does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI 
of the Rules of the House of Representatives.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, committee reports on a bill or joint 
resolution of a public character shall include a statement 
citing the specific powers granted to the Congress in the 
Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandate Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee states that H.R. 2881 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                  Applicability of Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).
                       Committee Correspondence 



         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *



SUBTITLE I--DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *


CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *



Sec. 106. Federal Aviation Administration

  (a) * * *

           *       *       *       *       *       *       *

  (k) Authorization of Appropriations for Operations.--
          (1) Salaries, operations, and maintenance.--There is 
        authorized to be appropriated to the Secretary of 
        Transportation for salaries, operations, and 
        maintenance of the Administration--
                  [(A) $7,591,000,000 for fiscal year 2004;
                  [(B) $7,732,000,000 for fiscal year 2005;
                  [(C) $7,889,000,000 for fiscal year 2006; and
                  [(D) $8,064,000,000 for fiscal year 2007.]
                  (A) $8,726,000,000 for fiscal year 2008;
                  (B) $8,978,000,000 for fiscal year 2009;
                  (C) $9,305,000,000 for fiscal year 2010; and
                  (D) $9,590,000,000 for fiscal year 2011.
          (2) Authorized expenditures.--Out of amounts 
        appropriated under paragraph (1), the following 
        expenditures are authorized:
                  [(A) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to support 
                infrastructure systems development for both 
                general aviation and the vertical flight 
                industry.
                  [(B) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to establish helicopter 
                approach procedures using current technologies 
                (such as the Global Positioning System) to 
                support all-weather, emergency medical service 
                for trauma patients.
                  [(C) Such sums as may be necessary for fiscal 
                years 2004 through 2007 to revise existing 
                terminal and en route procedures and instrument 
                flight rules to facilitate the takeoff, flight, 
                and landing of tiltrotor aircraft and to 
                improve the national airspace system by 
                separating such aircraft from congested flight 
                paths of fixed-wing aircraft.
                  [(D) Such sums as may be necessary for fiscal 
                years 2004 through 2007 for the Center for 
                Management Development of the Federal Aviation 
                Administration to operate training courses and 
                to support associated student travel for both 
                residential and field courses.]
                  [(E)] (A) Such sums as may be necessary for 
                fiscal years [2004 through 2007] 2008 through 
                2011 to carry out and expand the Air Traffic 
                Control Collegiate Training Initiative.
                  [(F) Such sums as may be necessary for fiscal 
                years 2004 through 2007 for the completion of 
                the Alaska aviation safety project with respect 
                to the 3 dimensional mapping of Alaska's main 
                aviation corridors.]
                  [(G)] (B) Such sums as may be necessary for 
                fiscal years [2004 through 2007] 2008 through 
                2011 to carry out the Aviation Safety Reporting 
                System.

           *       *       *       *       *       *       *

  (m) Cooperation by Administrator.--With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, 
personnel, and facilities of any other Federal agency (as such 
term is defined in section 551(1) of title 5) and any other 
public or private entity. The Administrator may also cooperate 
with appropriate officials of other public and private agencies 
and instrumentalities concerning the use of services, 
equipment, personnel, and facilities. The head of each Federal 
agency shall cooperate with the Administrator in making the 
services, equipment, personnel, and facilities of the Federal 
agency available to the Administrator. The head of a Federal 
agency is authorized, notwithstanding any other provision of 
law, to transfer to or to receive from the Administration, with 
or without reimbursement, supplies, personnel, services, and 
equipment other than administrative supplies or equipment.

           *       *       *       *       *       *       *


Subtitle II--OTHER GOVERNMENT AGENCIES

           *       *       *       *       *       *       *


CHAPTER 11--NATIONAL TRANSPORTATION SAFETY BOARD

           *       *       *       *       *       *       *


SUBCHAPTER IV--ENFORCEMENT AND PENALTIES

           *       *       *       *       *       *       *


Sec. 1153. Judicial review

  (a) * * *

           *       *       *       *       *       *       *

  (c) Administrator Seeking Judicial Review of Aviation 
Matters.--When the Administrator of the Federal Aviation 
Administration decides that an order of the Board under 
[section 44709 or] section 44703(d), 44709, or 46301(d)(5) of 
this title will have a significant adverse impact on carrying 
out this chapter related to an aviation matter, the 
Administrator may obtain judicial review of the order under 
section 46110 of this title. The Administrator shall be made a 
party to the judicial review proceedings. Findings of fact of 
the Board are conclusive if supported by substantial evidence.

           *       *       *       *       *       *       *


                    Subtitle VII--AVIATION PROGRAMS

                     PART A--AIR COMMERCE AND SAFETY

Chapter                                                             Sec.

                           SUBPART I--GENERAL

      General Provisions...........................................40101
     * * * * * * *

                     SUBPART II--ECONOMIC REGULATION

     * * * * * * *
42301ir Passenger Service Improvements................................

           *       *       *       *       *       *       *


PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *


                           SUBPART I--GENERAL

                    CHAPTER 401--GENERAL PROVISIONS

Sec.
40101. Policy.
     * * * * * * *
40130. FAA access to criminal history records or databases systems.

           *       *       *       *       *       *       *


Sec. 40102. Definitions

  (a) General Definitions.--In this part--
          (1) * * *

           *       *       *       *       *       *       *

          (4) ``air navigation facility'' means a facility 
        used, available for use, or designed for use, in aid of 
        air navigation, including--
                  (A) * * *
                  [(B) a light;
                  [(C) apparatus or equipment for distributing 
                weather information, signaling, radio-
                directional finding, or radio or other 
                electromagnetic communication; and]
                  (B) runway lighting and airport surface 
                visual and other navigation aids;
                  (C) 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;
                  [(D)] (E) [another structure] any structure, 
                equipment, or mechanism for guiding or 
                controlling flight in the air or the landing 
                and takeoff of aircraft[.]; and
                  (F) buildings, equipment, and systems 
                dedicated to the national airspace system.

           *       *       *       *       *       *       *

          (15) ``citizen of the United States'' means--
                  (A) * * *

           *       *       *       *       *       *       *

        For purposes of subparagraph (C), an air carrier shall 
        not be deemed to be under the actual control of 
        citizens of the United States unless citizens of the 
        United States control all matters pertaining to the 
        business and structure of the air carrier, including 
        operational matters such as marketing, branding, fleet 
        composition, route selection, pricing, and labor 
        relations.

           *       *       *       *       *       *       *


Sec. 40110. General procurement authority

  (a) General.--In carrying out this part, the Administrator of 
the Federal Aviation Administration--
          (1) * * *
          (2) may dispose of an interest in property for 
        adequate [compensation] compensation, and the amount 
        received shall be credited as an offsetting collection 
        to the account from which the amount was expended and 
        shall remain available until expended; and

           *       *       *       *       *       *       *

  (c) Duties and Powers.--When carrying out subsection (a) of 
this section, the Administrator of the Federal Aviation 
Administration may--
          (1) * * *

           *       *       *       *       *       *       *

          (3) construct, or acquire an interest in, a public 
        building (as defined in section 3301(a) of title 40) 
        only under a delegation of authority from the 
        Administrator of General Services[;]; and
          [(4) use procedures other than competitive procedures 
        only when the property or services needed by the 
        Administrator of the Federal Aviation Administration 
        are available from only one responsible source or only 
        from a limited number of responsible sources and no 
        other type of property or services will satisfy the 
        needs of the Administrator; and]
          [(5)] (4) dispose of property under subsection (a)(2) 
        of this section, except for airport and airway property 
        and technical equipment used for the special purposes 
        of the Administration, only under sections 121, 123, 
        and 126 and chapter 5 of title 40.

           *       *       *       *       *       *       *


Sec. 40113. Administrative

  (a) * * *

           *       *       *       *       *       *       *

  (e) Assistance to Foreign Aviation Authorities.--
          (1) Safety-related training and operational 
        services.--The Administrator may provide safety-related 
        training and operational services to public and private 
        foreign aviation authorities with or without 
        reimbursement, if the Administrator determines that 
        providing such services promotes aviation safety[.] or 
        efficiency. The Administrator may participate in, and 
        submit offers in response to, competitions to provide 
        such services and may contract with foreign aviation 
        authorities to provide such services consistent with 
        section 106(l)(6). Notwithstanding any other provision 
        of law or policy, the Administrator may accept payments 
        received under this subsection in arrears. To the 
        extent practicable, air travel reimbursed under this 
        subsection shall be conducted on United States air 
        carriers.

           *       *       *       *       *       *       *

          (3) Crediting appropriations.--Funds received by the 
        Administrator pursuant to this section shall be 
        [credited to the appropriation from which the expenses 
        were incurred in providing such services.] credited as 
        an offsetting collection to the account from which the 
        expenses were incurred in providing such services and 
        shall remain available until expended.

           *       *       *       *       *       *       *


Sec. 40117. Passenger facility [fees] charges

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Eligible airport-related project.--The term 
        ``eligible airport-related project'' means any of the 
        following projects:
                  (A)  * * *
                  (B) A project for terminal development 
                described in section [47110(d)] 47119(a).

           *       *       *       *       *       *       *

                  (H) A project to construct secure bicycle 
                storage facilities that are to be used by 
                passengers at the airport and that are in 
                compliance with applicable security standards.

           *       *       *       *       *       *       *

          [(5) Passenger facility fee.--The term ``passenger 
        facility fee'' means a fee imposed under this section.]
          (5) Passenger facility charge.--The term ``passenger 
        facility charge'' means a charge or fee imposed under 
        this section.
          (6) Passenger facility revenue.--The term ``passenger 
        facility revenue'' means revenue derived from a 
        passenger facility [fee] charge.
  (b) General Authority.--(1) The Secretary of Transportation 
may authorize under this section an eligible agency to impose a 
passenger facility [fee] charge of $1, $2, or $3 on each paying 
passenger of an air carrier or foreign air carrier boarding an 
aircraft at an airport the agency controls to finance an 
eligible airport-related project, including making payments for 
debt service on indebtedness incurred to carry out the project, 
to be carried out in connection with the airport or any other 
airport the agency controls.
  (2) A State, political subdivision of a State, or authority 
of a State or political subdivision that is not the eligible 
agency may not regulate or prohibit the imposition or 
collection of a passenger facility [fee] charge or the use of 
the passenger facility revenue.
  (3) A passenger facility [fee] charge may be imposed on a 
passenger of an air carrier or foreign air carrier originating 
or connecting at the commercial service airport that the agency 
controls.
  (4) In lieu of authorizing a [fee] charge under paragraph 
(1), the Secretary may authorize under this section an eligible 
agency to impose a passenger facility [fee] charge of [$4.00 or 
$4.50] $4.00, $4.50, $5.00, $6.00, or $7.00 on each paying 
passenger of an air carrier or foreign air carrier boarding an 
aircraft at an airport the agency controls to finance an 
eligible airport-related project, including making payments for 
debt service on indebtedness incurred to carry out the project, 
if the Secretary finds--
          (A) * * *

           *       *       *       *       *       *       *

  (5) Maximum cost for certain low-emission technology 
projects.--The maximum cost that may be financed by imposition 
of a passenger facility [fee] charge under this section for a 
project described in subsection (a)(3)(G) with respect to a 
vehicle or ground support equipment may not exceed the 
incremental amount of the project cost that is greater than the 
cost of acquiring a vehicle or equipment that is not low-
emission and would be used for the same purpose, or the cost of 
low-emission retrofitting, as determined by the Secretary.
  (6) Debt service for certain projects.--In addition to the 
uses specified in paragraphs (1) and (4), the Secretary may 
authorize a passenger facility [fee] charge imposed under 
paragraph (1) or (4) to be used for making payments for debt 
service on indebtedness incurred to carry out at the airport a 
project that is not an eligible airport-related project if the 
Secretary determines that such use is necessary due to the 
financial need of the airport.
  (7) Noise mitigation for certain schools.--
                  (A) In general.--In addition to the uses 
                specified in paragraphs (1), (4), and (6), the 
                Secretary may authorize a passenger facility 
                charge imposed under paragraph (1) or (4) at a 
                large hub airport that is the subject of an 
                amended judgment and final order in 
                condemnation filed on January 7, 1980, by the 
                Superior Court of the State of California for 
                the county of Los Angeles, to be used for a 
                project to carry out noise mitigation for a 
                building, or for the replacement of a 
                relocatable building with a permanent building, 
                in the noise impacted area surrounding the 
                airport at which such building is used 
                primarily for educational purposes, 
                notwithstanding the air easement granted or any 
                terms to the contrary in such judgment and 
                final order, if--
                          (i) the Secretary determines that the 
                        building is adversely affected by 
                        airport noise;
                          (ii) the building is owned or 
                        chartered by the school district that 
                        was the plaintiff in case number 
                        986,442 or 986,446, which was resolved 
                        by such judgment and final order;
                          (iii) the project is for a school 
                        identified in one of the settlement 
                        agreements effective February 16, 2005, 
                        between the airport and each of the 
                        school districts;
                          (iv) in the case of a project to 
                        replace a relocatable building with a 
                        permanent building, the eligible 
                        project costs are limited to the actual 
                        structural construction costs necessary 
                        to mitigate aircraft noise in 
                        instructional classrooms to an interior 
                        noise level meeting current standards 
                        of the Federal Aviation Administration; 
                        and
                          (v) the project otherwise meets the 
                        requirements of this section for 
                        authorization of a passenger facility 
                        charge.
                  (B) Eligible project costs.--In subparagraph 
                (A)(iv), the term ``eligible project costs'' 
                means the difference between the cost of 
                standard school construction and the cost of 
                construction necessary to mitigate classroom 
                noise to the standards of the Federal Aviation 
                Administration.
  (c) Applications.--(1) An eligible agency must submit to the 
Secretary an application for authority to impose a passenger 
facility [fee] charge. The application shall contain 
information and be in the form that the Secretary may require 
by regulation.
  (2) Before submitting an application, the eligible agency 
must provide reasonable notice to, and an opportunity for 
consultation with, air carriers and foreign air carriers 
operating at the airport. The Secretary shall prescribe 
regulations that define reasonable notice and contain at least 
the following requirements:
          (A) The agency must provide written notice of 
        individual projects being considered for financing by a 
        passenger facility [fee] charge and the date and 
        location of a meeting to present the projects to air 
        carriers and foreign air carriers operating at the 
        airport.

           *       *       *       *       *       *       *

  (3) Before submitting an application, the eligible agency 
must provide reasonable notice and an opportunity for public 
comment. The Secretary shall prescribe regulations that define 
reasonable notice and provide for at least the following under 
this paragraph:
          (A) A requirement that the eligible agency provide 
        public notice of intent to collect a passenger facility 
        [fee] charge so as to inform those interested persons 
        and agencies that may be affected. The public notice 
        may include--
                  (i) * * *

           *       *       *       *       *       *       *

  (d) Limitations on Approving Applications.--The Secretary may 
approve an application that an eligible agency has submitted 
under subsection (c) of this section to finance a specific 
project only if the Secretary finds, based on the application, 
that--
          (1) the amount and duration of the proposed passenger 
        facility [fee] charge will result in revenue (including 
        interest and other returns on the revenue) that is not 
        more than the amount necessary to finance the specific 
        project;

           *       *       *       *       *       *       *

          (4) in the case of an application to impose a [fee] 
        charge of more than $3.00 for an eligible surface 
        transportation or terminal project, the agency has made 
        adequate provision for financing the airside needs of 
        the airport, including runways, taxiways, aprons, and 
        aircraft gates.
  (e) Limitations on Imposing [Fees] Charges.--(1) An eligible 
agency may impose a passenger facility [fee] charge only--
          (A)  * * *

           *       *       *       *       *       *       *

  (2) A passenger facility [fee] charge may not be collected 
from a passenger--
          (A) * * *

           *       *       *       *       *       *       *

  (f) Limitations on Contracts, Leases, and Use Agreements.--
(1) A contract between an air carrier or foreign air carrier 
and an eligible agency made at any time may not impair the 
authority of the agency to impose a passenger facility [fee] 
charge or to use the passenger facility revenue as provided in 
this section.
  (2) A project financed with a passenger facility [fee] charge 
may not be subject to an exclusive long-term lease or use 
agreement of an air carrier or foreign air carrier, as defined 
by regulations of the Secretary.
  (3) A lease or use agreement of an air carrier or foreign air 
carrier related to a project whose construction or expansion 
was financed with a passenger facility [fee] charge may not 
restrict the eligible agency from financing, developing, or 
assigning new capacity at the airport with passenger facility 
revenue.
  (g) Treatment of Revenue.--(1) * * *

           *       *       *       *       *       *       *

  (4) Passenger facility revenues that are held by an air 
carrier or an agent of the carrier after collection of a 
passenger facility [fee] charge constitute a trust fund that is 
held by the air carrier or agent for the beneficial interest of 
the eligible agency imposing the [fee] charge. Such carrier or 
agent holds neither legal nor equitable interest in the 
passenger facility revenues except for any handling fee or 
retention of interest collected on unremitted proceeds as may 
be allowed by the Secretary.
  (h) Compliance.--(1) As necessary to ensure compliance with 
this section, the Secretary shall prescribe regulations 
requiring recordkeeping and auditing of accounts maintained by 
an air carrier or foreign air carrier and its agent collecting 
a passenger facility [fee] charge and by the eligible agency 
imposing the [fee] charge.
  (2) The Secretary periodically shall audit and review the use 
by an eligible agency of passenger facility revenue. After 
review and a public hearing, the Secretary may end any part of 
the authority of the agency to impose a passenger facility 
[fee] charge to the extent the Secretary decides that the 
revenue is not being used as provided in this section.
  (3) The Secretary may set off amounts necessary to ensure 
compliance with this section against amounts otherwise payable 
to an eligible agency under subchapter I of chapter 471 of this 
title if the Secretary decides a passenger facility [fee] 
charge is excessive or that passenger facility revenue is not 
being used as provided in this section.
  (i) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations--
          (1) may prescribe the time and form by which a 
        passenger facility [fee] charge takes effect;
          (2) shall--
                  (A) require an air carrier or foreign air 
                carrier and its agent to collect a passenger 
                facility [fee] charge that an eligible agency 
                imposes under this section;
                  (B) establish procedures for handling and 
                remitting money collected;
                  (C) ensure that the money, less a uniform 
                amount the Secretary determines reflects the 
                average necessary and reasonable expenses (net 
                of interest accruing to the carrier and agent 
                after collection and before remittance) 
                incurred in collecting and handling the [fee] 
                charge, is paid promptly to the eligible agency 
                for which they are collected; and
                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air transportation; and
          (3) may permit an eligible agency to request that 
        collection of a passenger facility [fee] charge be 
        waived for--
                  (A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carriers in the 
                class constitutes not more than one percent of 
                the total number of passengers enplaned 
                annually at the airport at which the [fee] 
                charge is imposed; or

           *       *       *       *       *       *       *

  (j) Limitation on Certain Actions.--A State, political 
subdivision of a State, or authority of a State or political 
subdivision that is not the eligible agency may not tax, 
regulate, or prohibit or otherwise attempt to control in any 
manner, the imposition or collection of a passenger facility 
[fee] charge or the use of the revenue from the passenger 
facility [fee] charge.
  (k) Competition Plans.--
          (1) In general.--Beginning in fiscal year 2001, no 
        eligible agency may impose a passenger facility [fee] 
        charge under this section with respect to a covered 
        airport (as such term is defined in section 47106(f)) 
        unless the agency has submitted to the Secretary a 
        written competition plan in accordance with such 
        section. This subsection does not apply to passenger 
        facility [fees] charges in effect before the date of 
        the enactment of this subsection.

           *       *       *       *       *       *       *

  (l) Pilot Program for Passenger Facility [Fee] Charge 
Authorizations at Nonhub Airports.--
          (1) In general.--The Secretary shall establish a 
        pilot program to test alternative procedures for 
        authorizing eligible agencies for nonhub airports to 
        impose passenger facility [fees] charges. An eligible 
        agency may impose in accordance with the provisions of 
        this subsection a passenger facility [fee] charge under 
        this section. For purposes of the pilot program, the 
        procedures in this subsection shall apply instead of 
        the procedures otherwise provided in this section.

           *       *       *       *       *       *       *

          (3) Notice of intention.--The eligible agency must 
        submit to the Secretary a notice of intention to impose 
        a passenger facility [fee] charge under this 
        subsection. The notice shall include--
                  (A) information that the Secretary may 
                require by regulation on each project for which 
                authority to impose a passenger facility [fee] 
                charge is sought;
                  (B) the amount of revenue from passenger 
                facility [fees] charges that is proposed to be 
                collected for each project; and
                  (C) the level of the passenger facility [fee] 
                charge that is proposed.
          (4) Acknowledgement of receipt and indication of 
        objection.--The Secretary shall acknowledge receipt of 
        the notice and indicate any objection to the imposition 
        of a passenger facility [fee] charge under this 
        subsection for any project identified in the notice 
        within 30 days after receipt of the eligible agency's 
        notice.
          (5) Authority to impose [fee] charge.--Unless the 
        Secretary objects within 30 days after receipt of the 
        eligible agency's notice, the eligible agency is 
        authorized to impose a passenger facility [fee] charge 
        in accordance with the terms of its notice under this 
        subsection.

           *       *       *       *       *       *       *

          [(7) Sunset.--This subsection shall cease to be 
        effective beginning on the date that is 3 years after 
        the date of issuance of regulations to carry out this 
        subsection.]
          [(8)] (7) Acknowledgement not an order.--An 
        acknowledgement issued under paragraph (4) shall not be 
        considered an order issued by the Secretary for 
        purposes of section 46110.
  (m) Financial Management of [Fees] Charges.--
          (1) Handling of [fees] charges.--A covered air 
        carrier shall segregate in a separate account passenger 
        facility revenue equal to the average monthly liability 
        for [fees] charges collected under this section by such 
        carrier or any of its agents for the benefit of the 
        eligible agencies entitled to such revenue.

           *       *       *       *       *       *       *

          (5) Interest on amounts.--A covered air carrier that 
        collects passenger facility [fees] charges is entitled 
        to receive the interest on passenger facility [fee] 
        charge accounts if the accounts are established and 
        maintained in compliance with this subsection.
          (6) Existing regulations.--The provisions of section 
        158.49 of title 14, Code of Federal Regulations, that 
        permit the commingling of passenger facility [fees] 
        charges with other air carrier revenue shall not apply 
        to a covered air carrier.

           *       *       *       *       *       *       *

  (n) Pilot Program for PFC Eligibility for Intermodal Ground 
Access Projects.--
          (1) PFC eligibility.--Subject to the requirements of 
        this subsection, the Secretary shall establish a pilot 
        program under which the Secretary may authorize, at no 
        more than 5 airports, a passenger facility charge 
        imposed under subsection (b)(1) or (b)(4) to be used to 
        finance the eligible cost of an intermodal ground 
        access project.
          (2) Intermodal ground access project defined.--In 
        this section, the term ``intermodal ground access 
        project'' means a project for constructing a local 
        facility owned or operated by an eligible agency that 
        is directly and substantially related to the movement 
        of passengers or property traveling in air 
        transportation.
          (3) Eligible costs.--
                  (A) In general.--For purposes of paragraph 
                (1), the eligible cost of an intermodal ground 
                access project shall be the total cost of the 
                project multiplied by the ratio that--
                          (i) the number of individuals 
                        projected to use the project to gain 
                        access to or depart from the airport; 
                        bears to
                          (ii) the total number of the 
                        individuals projected to use the 
                        facility.
                  (B) Determinations regarding projected 
                project use.--
                          (i) In general.--Except as provided 
                        by clause (ii), the Secretary shall 
                        determine the projected use of a 
                        project for purposes of subparagraph 
                        (A) at the time the project is approved 
                        under this subsection.
                          (ii) Public transportation 
                        projects.--In the case of a project 
                        approved under this section to be 
                        financed in part using funds 
                        administered by the Federal Transit 
                        Administration, the Secretary shall use 
                        the travel forecasting model for the 
                        project at the time such project is 
                        approved by the Federal Transit 
                        Administration to enter preliminary 
                        engineering to determine the projected 
                        use of the project for purposes of 
                        subparagraph (A).

           *       *       *       *       *       *       *


Sec. 40119. Security and research and development activities

  (a) * * *
  (b) Disclosure.--(1) * * *

           *       *       *       *       *       *       *

          (3) Limitation on applicability of freedom of 
        information act.--Section 552 of title 5, United States 
        Code, shall not apply to disclosures that the 
        Administrator of the Federal Aviation Administration 
        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. 40122. Federal Aviation Administration personnel management system

  (a) In General.--
          (1) * * *
          [(2) Mediation.--If the Administrator does not reach 
        an agreement under paragraph (1) with the exclusive 
        bargaining representatives, the services of the Federal 
        Mediation and Conciliation Service shall be used to 
        attempt to reach such agreement. If the services of the 
        Federal Mediation and Conciliation Service do not lead 
        to an agreement, the Administrator's proposed change to 
        the personnel management system shall not take effect 
        until 60 days have elapsed after the Administrator has 
        transmitted the proposed change, along with the 
        objections of the exclusive bargaining representatives 
        to the change, and the reasons for such objections, to 
        Congress. The 60-day period shall not include any 
        period during which Congress has adjourned sine die.]
          (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 Reauthorization 
                        Act of 2007); 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) Binding arbitration.--
                          (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 an agreement, the 
                        Administrator and the exclusive 
                        bargaining representative of the 
                        employees (in this subparagraph 
                        referred to as the ``parties'') shall 
                        submit their issues in controversy to 
                        the Federal Service Impasses Panel. The 
                        Panel shall assist the parties in 
                        resolving the impasse by asserting 
                        jurisdiction and ordering binding 
                        arbitration by a private arbitration 
                        board consisting of 3 members.
                          (ii) Appointment of arbitration 
                        board.--The Executive Director of the 
                        Panel shall provide for the appointment 
                        of the 3 members of a private 
                        arbitration board under clause (i) by 
                        requesting the Director of the Federal 
                        Mediation and Conciliation Service to 
                        prepare a list of not less than 15 
                        names of arbitrators with Federal 
                        sector experience and by providing the 
                        list to the parties. Within 10 days of 
                        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 within 7 days. If 
                        either of the parties fails to select a 
                        person or if the 2 arbitrators are 
                        unable to agree on the third person 
                        within 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) 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)(B), 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 approval by the head of the agency 
        in accordance with the provisions referred to in 
        subsection (g)(2)(C).
          (4) Enforcement.--
                  (A) Enforcement actions in united states 
                courts.--Each United States district court and 
                each United States court of a place subject to 
                the jurisdiction of the United States shall 
                have jurisdiction of enforcement actions 
                brought under this section. Such an action may 
                be brought in any judicial district in the 
                State in which the violation of this section is 
                alleged to have been committed, the judicial 
                district in which the Federal Aviation 
                Administration has its principal office, or the 
                District of Columbia.
                  (B) Attorney fees.--The court may assess 
                against the Federal Aviation Administration 
                reasonable attorney fees and other litigation 
                costs reasonably incurred in any case under 
                this section in which the complainant has 
                substantially prevailed.
          [(3)] (5) Cost savings and productivity goals.--The 
        Administration and the exclusive bargaining 
        representatives of the employees shall use every 
        reasonable effort to find cost savings and to increase 
        productivity within each of the affected bargaining 
        units.
          [(4)] (6) Annual budget discussions.--The 
        Administration and the exclusive bargaining 
        representatives of the employees shall meet annually 
        for the purpose of finding additional cost savings 
        within the Administration's annual budget as it applies 
        to each of the affected bargaining units and throughout 
        the agency.

           *       *       *       *       *       *       *

  (g) Personnel Management System.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Appeals to merit systems protection board.--Under 
        the new personnel management system developed and 
        implemented under paragraph (1), an employee of the 
        Administration may submit an appeal to the Merit 
        Systems Protection Board and may seek judicial review 
        of any resulting final orders or decisions of the Board 
        from any action that was appealable to the Board under 
        any law, rule, or regulation as of March 31, 1996. 
        Notwithstanding any other provision of law, retroactive 
        to April 1, 1996, the Board shall have the same 
        remedial authority over such employee appeals that it 
        had as of March 31, 1996.

           *       *       *       *       *       *       *


Sec. 40128. Overflights of national parks

  (a) In General.--
          (1) General requirements.--A commercial air tour 
        operator may not conduct commercial air tour operations 
        over a national park or tribal lands, as defined by 
        this section, except--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) in accordance with any applicable air 
                tour management plan or voluntary agreement 
                under subsection (b)(7) for the park or tribal 
                lands.

           *       *       *       *       *       *       *

          (5) Exemption.--
                  (A) In general.--Notwithstanding paragraph 
                (1), a national park that has 50 or fewer 
                commercial air tour flights a 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.--The Director shall inform 
                the Administrator, in writing, of each 
                determination under subparagraph (B). The 
                Director and Administrator shall publish an 
                annual list of national parks that are covered 
                by the exemption provided by this paragraph.
                  (D) Annual report.--A commercial air tour 
                operator conducting commercial air tours in a 
                national park that is exempt from the 
                requirements of this section shall submit to 
                the Administrator and the Director an annual 
                report regarding the number of commercial air 
                tour flights it conducts each year in such 
                park.
  (b) Air Tour Management Plans.--
          (1) * * *

           *       *       *       *       *       *       *

          (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 applicant and an 
                operator that has interim operating authority) 
                that has applied to conduct 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.--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.--A voluntary agreement under 
                this paragraph may be terminated at any time at 
                the discretion of the Director or the 
                Administrator if the Director determines that 
                the agreement is not adequately protecting park 
                resources or visitor experiences or the 
                Administrator determines that the agreement is 
                adversely affecting aviation safety or the 
                national aviation system. If a voluntary 
                agreement for a national park is terminated, 
                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.
  (c) Interim Operating Authority.--
          (1) * * *
          (2) Requirements and limitations.--Interim operating 
        authority granted under this subsection--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(I) shall allow for modifications of the 
                interim operating authority based on experience 
                if the modification improves protection of 
                national park resources and values and of 
                tribal lands.]
                  (I) may allow for modifications of the 
                interim operating authority without further 
                environmental review beyond that described in 
                this section if--
                          (i) adequate information regarding 
                        the operator's existing and proposed 
                        operations 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 Director's 
                        professional expertise regarding the 
                        protection of the park resources and 
                        values and visitor use and enjoyment.
          (3) New entrant air tour operators.--
                  (A) In general.--The Administrator, in 
                cooperation with the Director, may grant 
                interim operating authority under this 
                paragraph to an air tour operator for a 
                national park or tribal lands for which that 
                operator is a new entrant air tour operator [if 
                the Administrator determines the authority is 
                necessary to ensure competition in the 
                provision of commercial air tour operations 
                over the park or tribal lands.] without further 
                environmental process beyond that described in 
                this paragraph if--
                          (i) adequate information on the 
                        operator's proposed operations 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.

           *       *       *       *       *       *       *

  (d) Commercial Air Tour Operator Reports.--
          (1) Report.--Each commercial air tour operator 
        providing a commercial air tour over a national park 
        under interim operating authority granted under 
        subsection (c) or in accordance with an air tour 
        management plan under subsection (b) shall submit a 
        report to the Administrator and Director regarding the 
        number of its commercial air tour operations over each 
        national park 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 3 months after 
        the date of enactment of the FAA Reauthorization Act of 
        2007, the Administrator and Director shall jointly 
        issue an initial request for reports under this 
        subsection. The reports shall be submitted to the 
        Administrator and Director on a frequency and in a 
        format prescribed by the Administrator and Director.
  [(d)] (e) Exemptions.--This section shall not apply to--
          (1)  * * *

           *       *       *       *       *       *       *

  [(e)] (f) Lake Mead.--This section shall not apply to any air 
tour operator while flying over or near the Lake Mead National 
Recreation Area, solely as a transportation route, to conduct 
an air tour over the Grand Canyon National Park. For purposes 
of this subsection, an air tour operator flying over the Hoover 
Dam in the Lake Mead National Recreation Area en route to the 
Grand Canyon National Park shall be deemed to be flying solely 
as a transportation route.
  [(f)] (g) Definitions.--In this section, the following 
definitions apply:
          (1) * * *

           *       *       *       *       *       *       *


Sec. 40130. FAA access to criminal history records or databases systems

  (a) Access to Records or Databases Systems.--
          (1) Access to information.--Notwithstanding section 
        534 of title 28, and regulations issued to implement 
        such section, the Administrator of the Federal Aviation 
        Administration may access a system of documented 
        criminal justice information maintained by the 
        Department of Justice or by a State but may do so only 
        for the purpose of carrying out civil and 
        administrative responsibilities of the Administration 
        to protect the safety and security of the national 
        airspace system or to support the missions of the 
        Department of Justice, the Department of Homeland 
        Security, and other law enforcement agencies.
          (2) Release of information.-- In accessing a system 
        referred to in paragraph (1), the Administrator shall 
        be subject to the same conditions and procedures 
        established by the Department of Justice or the State 
        for other governmental agencies with access to the 
        system.
          (3) Limitation.--The Administrator may not use the 
        access authorized under paragraph (1) to conduct 
        criminal investigations.
  (b) Designated Employees.--The Administrator shall designate, 
by order, employees of the Administration who shall carry out 
the authority described in subsection (a). The designated 
employees may--
          (1) have access to and receive criminal history, 
        driver, vehicle, and other law enforcement information 
        contained in the law enforcement databases of the 
        Department of Justice, or any jurisdiction of a State, 
        in the same manner as a police officer employed by a 
        State or local authority of that State who is certified 
        or commissioned under the laws of that State;
          (2) use any radio, data link, or warning system of 
        the Federal Government, and of any jurisdiction in a 
        State, that provides information about wanted persons, 
        be-on-the-lookout notices, warrant status, or other 
        officer safety information to which a police officer 
        employed by a State or local authority in that State 
        who is certified or commission under the laws of that 
        State has access and in the same manner as such police 
        officer; or
          (3) receive Federal, State, or local government 
        communications with a police officer employed by a 
        State or local authority in that State in the same 
        manner as a police officer employed by a State or local 
        authority in that State who is commissioned under the 
        laws of that State.
  (c) System of Documented Criminal Justice Information 
Defined.--In this section, the term ``system of documented 
criminal justice information'' means any law enforcement 
database, system, or communication containing information 
concerning identification, criminal history, arrests, 
convictions, arrest warrants, wanted or missing persons, 
including the National Crime Information Center and its 
incorporated criminal history databases and the National Law 
Enforcement Telecommunications System.

           *       *       *       *       *       *       *


SUBPART II--ECONOMIC REGULATION

           *       *       *       *       *       *       *


                  CHAPTER 417--OPERATIONS OF CARRIERS

SUBCHAPTER I--REQUIREMENTS

           *       *       *       *       *       *       *


Sec. 41708. Reports

  (a) * * *

           *       *       *       *       *       *       *

  (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 under subsection (b) shall be subject to the 
        requirement of paragraph (1).
          (3) Contents.--A monthly report filed by an air 
        carrier under paragraph (1) shall include, at a 
        minimum, the following information:
                  (A) For a diverted flight--
                          (i) the flight number of the diverted 
                        flight;
                          (ii) the scheduled destination of the 
                        flight;
                          (iii) the date and time of the 
                        flight;
                          (iv) the airport to which the flight 
                        was diverted;
                          (v) wheels-on time at the diverted 
                        airport;
                          (vi) the time, if any, passengers 
                        deplaned the aircraft at the diverted 
                        airport; and
                          (vii) if the flight arrives at the 
                        scheduled destination airport--
                                  (I) the gate-departure time 
                                at the diverted airport;
                                  (II) the wheels-off time at 
                                the diverted airport;
                                  (III) the wheels-on time at 
                                the scheduled arrival airport; 
                                and
                                  (IV) the gate arrival time at 
                                the scheduled arrival airport.
                  (B) For flights cancelled after gate 
                departure--
                          (i) the flight number of the 
                        cancelled flight;
                          (ii) the scheduled origin and 
                        destination airports of the cancelled 
                        flight;
                          (iii) the date and time of the 
                        cancelled flight;
                          (iv) the gate-departure time of the 
                        cancelled flight; and
                          (v) the time the aircraft returned to 
                        the gate.
          (4) Publication.--The Secretary shall compile the 
        information provided in the monthly reports filed 
        pursuant to paragraph (1) in a single monthly report 
        and publish such report on the Web site of the 
        Department of Transportation.

           *       *       *       *       *       *       *


Sec. 41718. Special rules for Ronald Reagan Washington National Airport

  (a) Beyond-Perimeter Exemptions.--The Secretary shall grant, 
by order, [24] 34 exemptions from the application of sections 
49104(a)(5), 49109, 49111(e), and 41714 of this title to air 
carriers to operate limited frequencies and aircraft on select 
routes between Ronald Reagan Washington National Airport and 
domestic hub airports and exemptions from the requirements of 
subparts K and S of part 93, Code of Federal Regulations, if 
the Secretary finds that the exemptions will--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Limitations.--
          (1) * * *
          (2) General exemptions.--The exemptions granted under 
        subsections (a) and (b) 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 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 
        [3 operations] 5 operations.
          (3) Slots.--The Administrator of the Federal Aviation 
        Administration shall reduce the hourly air carrier slot 
        quota for Ronald Reagan Washington National Airport in 
        section 93.123(a) of title 14, Code of Federal 
        Regulations, by a total of 10 slots that are available 
        for allocation. Such reductions shall be taken in the 
        6:00 a.m., 10:00 p.m., or 11:00 p.m. hours, as 
        determined by the Administrator, in order to grant 
        exemptions under subsection (a).
          [(3)] (4) Allocation of within-perimeter 
        exemptions.--Of the exemptions granted under subsection 
        (b)--
                  (A) * * *

           *       *       *       *       *       *       *

          [(4)] (5) Applicability to exemption no. 5133.--
        Nothing in this section affects Exemption No. 5133, as 
        from time-to-time amended and extended.

           *       *       *       *       *       *       *

  (e) Scheduling Priority.--Operations conducted by new entrant 
air carriers and limited incumbent air carriers shall be 
afforded a scheduling priority over operations conducted by 
other air carriers granted exemptions pursuant to this section, 
with the highest scheduling priority to be afforded to beyond-
perimeter operations conducted by new entrant air carriers and 
limited incumbent air carriers.
  [(e)] (f) Applicability of Certain Laws.--Neither the request 
for, nor the granting of an exemption, under this section shall 
be considered for purposes of any Federal law a major Federal 
action significantly affecting the quality of the human 
environment.
  [(f)] (g) Commuters Defined.--For purposes of aircraft 
operations at Ronald Reagan Washington National Airport under 
subpart K of part 93 of title 14, Code of Federal Regulations, 
the term `commuters' means aircraft operations using aircraft 
having a certificated maximum seating capacity of 76 or less.

           *       *       *       *       *       *       *


SUBCHAPTER II--SMALL COMMUNITY AIR SERVICE

           *       *       *       *       *       *       *


Sec. 41737. Compensation guidelines, limitations, and claims

  (a) Compensation Guidelines.--(1) The Secretary of 
Transportation shall prescribe guidelines governing the rate of 
compensation payable under this subchapter. The guidelines 
shall be used to determine the reasonable amount of 
compensation required to ensure the continuation of air service 
or air transportation under this subchapter. The guidelines 
shall--
          (A) * * *
          (B) consider amounts needed by an air carrier to 
        promote public use of the service or transportation for 
        which compensation is being paid; [and]
          (C) include expense elements based on representative 
        costs of air carriers providing scheduled air 
        transportation of passengers, property, and mail on 
        aircraft of the type the Secretary decides is 
        appropriate for providing the service or transportation 
        for which compensation is being [provided.] provided;
          (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; 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.

           *       *       *       *       *       *       *


Sec. 41742. Essential air service authorization

  (a) In General.--
          (1) * * *
          (2) Additional funds.--In addition to amounts 
        authorized under paragraph (1), there is authorized to 
        be appropriated [$77,000,000] $83,000,000 for each 
        fiscal year to carry out the essential air service 
        program under this subchapter of which not more than 
        $12,000,000 per fiscal year may be used for the 
        marketing incentive program for communities and for 
        State marketing assistance.

           *       *       *       *       *       *       *

          (4) Distribution of excess funds.--Of the funds, if 
        any, credited to the account established under section 
        45303 in a fiscal year that exceed the $50,000,000 made 
        available for such fiscal year under paragraph (1)--
                  (A) one-half shall be made available 
                immediately for obligation and expenditure to 
                carry out section 41743; and
                  (B) one-half shall be made available 
                immediately for obligation and expenditure to 
                carry out subsection (b).
  (b) Funding for Small Community Air Service.--Notwithstanding 
any other provision of law, [moneys credited to the account 
established under section 45303(a) of this title, including the 
funds derived from fees imposed under the authority contained 
in section 45301(a) of this title,] amounts made available 
under subsection (a)(4)(B) shall be used to carry out the 
essential air service program under this subchapter. 
Notwithstanding section 47114(g) of this title, [any amounts 
from those fees] any of such amounts that are not obligated or 
expended at the end of the fiscal year for the purpose of 
funding the essential air service program under this subchapter 
shall be made available to the Administration for use in 
improving rural air safety under subchapter I of chapter 471 of 
this title and shall be used exclusively for projects at rural 
airports under this subchapter.

Sec. 41743. Airports not receiving sufficient service

  (a) * * *

           *       *       *       *       *       *       *

  (c) Criteria for Participation.--In selecting communities, or 
consortia of communities, for participation in the program 
established under subsection (a), the Secretary shall apply the 
following criteria:
          (1) * * *

           *       *       *       *       *       *       *

          (5) Priorities.--The Secretary shall give priority to 
        communities or consortia of communities where--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) the assistance will provide material 
                benefits to a broad segment of the travelling 
                public, including business, educational 
                institutions, and other enterprises, whose 
                access to the national air transportation 
                system is limited; [and]
                  (E) the assistance will be used in a timely 
                [fashion.] fashion; and
                  (F) multiple communities cooperate to submit 
                a regional or multistate application to improve 
                air service.

           *       *       *       *       *       *       *

  (e) Authority To Make Agreements.--
          (1) * * *
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary 
        $20,000,000 for fiscal year 2001, $27,500,000 for each 
        of fiscal years 2002 and 2003, and $35,000,000 for each 
        of fiscal years 2004 through [2008] 2011 to carry out 
        this section. Such sums shall remain available until 
        expended.

           *       *       *       *       *       *       *


            CHAPTER 423--AIR PASSENGER 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 
air carrier providing covered air transportation at a large hub 
airport or medium hub airport and each operator of a large hub 
airport or medium hub airport shall submit to the Secretary of 
Transportation for review and approval an emergency contingency 
plan in accordance with the requirements of this section.
  (b) Covered Air Transportation Defined.--In this section, the 
term ``covered air transportation'' means scheduled passenger 
air transportation provided by an air carrier using aircraft 
with more than 60 seats.
  (c) Air Carrier Plans.--
          (1) Plans for individual airports.--An air carrier 
        shall submit an emergency contingency plan under 
        subsection (a) for--
                  (A) each large hub airport and medium hub 
                airport at which the carrier provides covered 
                air transportation; and
                  (B) each large hub airport and medium hub 
                airport at which the carrier has flights for 
                which it 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 
        air carrier will--
                  (A) provide food, water, restroom facilities, 
                cabin ventilation, and access to medical 
                treatment for passengers onboard an aircraft at 
                the airport that is on the ground for an 
                extended period of time without access to the 
                terminal; and
                  (B) share facilities and make gates available 
                at the airport in an emergency.
  (d) Airport Plans.--An emergency contingency plan submitted 
by an airport operator under subsection (a) shall contain a 
description of how the airport operator, to the maximum extent 
practicable, will provide for the sharing of facilities and 
make gates available at the airport in an emergency.
  (e) Updates.--
          (1) Air carriers.--An air carrier shall update the 
        emergency contingency plan submitted by the air 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 the 
        emergency contingency plan submitted by the airport 
        operator under subsection (a) every 5 years and submit 
        the update to the Secretary for review and approval.
  (f) Approval.--The Secretary shall review and approve 
emergency contingency plans submitted under subsection (a) and 
updates submitted under subsection (e) to ensure that the plans 
and updates will effectively address emergencies and provide 
for the health and safety of passengers.

Sec. 42302. Consumer complaints

  (a) Consumer Complaints Hotline Telephone Number.--The 
Secretary of Transportation shall establish a consumer 
complaints hotline telephone number for the use of passengers 
in air transportation.
  (b) Public Notice.--The Secretary shall notify the public of 
the telephone number established under subsection (a).
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as may be necessary to carry out this 
section. Such sums shall remain available until expended.

Sec. 42303. Use of insecticides in passenger aircraft

  No air carrier, foreign air carrier, or ticket agent may sell 
in the United States a ticket for air transportation for a 
flight on which an insecticide is planned to be used in the 
aircraft while passengers are on board the aircraft unless the 
air carrier, foreign air carrier, or ticket agent selling the 
ticket first informs the person purchasing the ticket of the 
planned use of the insecticide, including the name of the 
insecticide.

           *       *       *       *       *       *       *


SUBPART III--SAFETY

           *       *       *       *       *       *       *


CHAPTER 443--INSURANCE

           *       *       *       *       *       *       *


Sec. 44302. General authority

  (a) * * *

           *       *       *       *       *       *       *

  (f) Extension of Policies.--
          (1) In general.--The Secretary shall extend through 
        [August 31, 2006] September 30, 2011, and may extend 
        through [December 31, 2006] September 30, 2017, the 
        termination date of any insurance policy that the 
        Department of Transportation issued to an air carrier 
        under subsection (a) and that is in effect on the date 
        of enactment of this subsection on no less favorable 
        terms to the air carrier than existed on June 19, 2002; 
        except that the Secretary shall amend the insurance 
        policy, subject to such terms and conditions as the 
        Secretary may prescribe, to add coverage for losses or 
        injuries to aircraft hulls, passengers, and crew at the 
        limits carried by air carriers for such losses and 
        injuries as of such date of enactment and at an 
        additional premium comparable to the premium charged 
        for third-party casualty coverage under such policy.

           *       *       *       *       *       *       *

          (3) Successor program.--
                  (A) In general.--After December 31, 2017, 
                coverage for the risks specified in a policy 
                that has been extended under paragraph (1) 
                shall be provided in an airline industry 
                sponsored risk retention or other risk-sharing 
                arrangement approved by the Secretary.
                  (B) Transfer of premiums.--
                          (i) In general.--On December 31, 
                        2017, and except as provided in clause 
                        (ii), premiums that are collected by 
                        the Secretary from the airline industry 
                        after September 22, 2001, for any 
                        policy under this subsection, and 
                        interest earned thereon, as determined 
                        by the Secretary, shall be transferred 
                        to an airline industry sponsored risk 
                        retention or other risk-sharing 
                        arrangement approved by the Secretary.
                          (ii) Determination of amount 
                        transferred.--The amount transferred 
                        pursuant to clause (i) shall be less--
                                  (I) the amount of any claims 
                                paid out on such policies from 
                                September 22, 2001, through 
                                December 31, 2017;
                                  (II) the amount of any claims 
                                pending under such policies as 
                                of December 31, 2017; and
                                  (III) the cost, as determined 
                                by the Secretary, of 
                                administering the provision of 
                                insurance policies under this 
                                chapter from September 22, 
                                2001, through December 31, 
                                2017.

           *       *       *       *       *       *       *


Sec. 44303. Coverage

  (a) * * *
  (b) Air Carrier Liability for Third Party Claims Arising Out 
of Acts of Terrorism.--For acts of terrorism committed on or to 
an air carrier during the period beginning on September 22, 
2001, and ending on [December 31, 2006] December 31, 2012, the 
Secretary may certify that the air carrier was a victim of an 
act of terrorism and in the Secretary's judgment, based on the 
Secretary's analysis and conclusions regarding the facts and 
circumstances of each case, shall not be responsible for losses 
suffered by third parties (as referred to in section 
205.5(b)(1) of title 14, Code of Federal Regulations) that 
exceed $100,000,000, in the aggregate, for all claims by such 
parties arising out of such act. If the Secretary so certifies, 
the air carrier shall not be liable for an amount that exceeds 
$100,000,000, in the aggregate, for all claims by such parties 
arising out of such act, and the Government shall be 
responsible for any liability above such amount. No punitive 
damages may be awarded against an air carrier (or the 
Government taking responsibility for an air carrier under this 
subsection) under a cause of action arising out of such act. 
The Secretary may extend the provisions of this subsection to 
an aircraft manufacturer (as defined in section 44301) of the 
aircraft of the air carrier involved.

Sec. 44304. Reinsurance

  To the extent the Secretary of Transportation is authorized 
to provide insurance under this chapter, the Secretary may 
reinsure any part of the insurance provided by an insurance 
carrier. The Secretary may reinsure with, transfer to, or 
transfer back to, [the carrier] any insurance carrier any 
insurance or reinsurance provided by the Secretary under this 
chapter.

           *       *       *       *       *       *       *


Sec. 44308. Administrative

  (a) * * *

           *       *       *       *       *       *       *

  (c) Underwriting Agent.--(1) The Secretary may, and when 
practical shall, employ an insurance carrier or group of 
insurance carriers to act as an underwriting agent. The 
Secretary may use the [agent] agent, or a claims adjuster who 
is independent of the underwriting agent, to adjust claims 
under this chapter, but claims may be paid only when approved 
by the Secretary.

           *       *       *       *       *       *       *


Sec. 44310. Ending effective date

  The authority of the Secretary of Transportation to provide 
insurance and reinsurance under this chapter is not effective 
after [March 30, 2008] September 30, 2017.

           *       *       *       *       *       *       *


                     CHAPTER 447--SAFETY REGULATION

Sec.
44701.  General requirements.
     * * * * * * *
44729.  Age standards for pilots.
44730.  Inspection of foreign repair stations.

           *       *       *       *       *       *       *


Sec. 44703. Airman certificates

  (a) * * *

           *       *       *       *       *       *       *

  (d) Appeals.--(1) * * *

           *       *       *       *       *       *       *

  (3) Judicial review.--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.

           *       *       *       *       *       *       *


Sec. 44704. Type certificates, production certificates, airworthiness 
                    certificates and design organization certificates

  (a) Type Certificates.--
          (1) * * *

           *       *       *       *       *       *       *

          (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 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;
                          (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 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.

           *       *       *       *       *       *       *

  (e) Design Organization Certificates.--
          (1) Issuance.--[Beginning 7 years after the date of 
        enactment of this subsection,] Beginning January 1, 
        2013, the Administrator may issue a design organization 
        certificate to a design organization to authorize the 
        organization to certify compliance with the 
        requirements and minimum standards prescribed under 
        section 44701(a) for the type certification of 
        aircraft, aircraft engines, propellers, or appliances.

           *       *       *       *       *       *       *


Sec. 44729. Age standards for pilots

  (a) In General.--Subject to the limitation in subsection (c), 
a pilot may serve in multicrew covered operations until 
attaining 65 years of age.
  (b) Covered Operations Defined.--In this section, the term 
``covered operations'' means operations under part 121 of title 
14, Code of Federal Regulations.
  (c) Limitation for International Flights.--
          (1) Applicability of icao standard.--A pilot who has 
        attained 60 years of age may serve as pilot-in-command 
        in covered operations between the United States and 
        another country only if there is another pilot in the 
        flight deck crew who has not yet attained 60 years of 
        age.
          (2) Sunset of limitation.--Paragraph (1) shall cease 
        to be effective on such date as the Convention on 
        International Civil Aviation provides that a pilot who 
        has attained 60 years of age may serve as pilot-in-
        command in international commercial operations without 
        regard to whether there is another pilot in the flight 
        deck crew who has not attained age 60.
  (d) Sunset of Age-60 Retirement Rule.--On and after the date 
of enactment of this section, section 121.383(c) of title 14, 
Code of Federal Regulations, shall cease to be effective.
  (e) Applicability.--
          (1) Nonretroactivity.--No person who has attained 60 
        years of age before the date of enactment of this 
        section may serve as a pilot for an air carrier engaged 
        in covered operations unless--
                  (A) such person is in the employment of that 
                air carrier in such operations on such date of 
                enactment as a required flight deck crew 
                member; or
                  (B) such person is newly hired by an air 
                carrier as a pilot on or after such date of 
                enactment without credit for prior seniority or 
                prior longevity for benefits or other terms 
                related to length of service prior to the date 
                of rehire under any labor agreement or 
                employment policies of the air carrier.
          (2) Protection for compliance.--An action taken in 
        conformance with this section, taken in conformance 
        with a regulation issued to carry out this section, or 
        taken prior to the date of enactment of this section in 
        conformance with section 121.383(c) of title 14, Code 
        of Federal Regulations (as in effect before such date 
        of enactment), may not serve as a basis for liability 
        or relief in a proceeding before any court or agency of 
        the United States or of any State or locality.
  (f) Amendments to Labor Agreements and Benefit Plans.--Any 
amendment to a labor agreement or benefit plan of an air 
carrier that is required to conform with the requirements of 
this section or a regulation issued to carry out this section, 
and is applicable to pilots represented for collective 
bargaining, shall be made by agreement of the air carrier and 
the designated bargaining representative of the pilots of the 
air carrier.
  (g) Medical Standards and Records.--
          (1) Medical examinations and standards.--Except as 
        provided by paragraph (2), a person serving as a pilot 
        for an air carrier engaged in covered operations shall 
        not be subject to different medical standards, or 
        different, greater, or more frequent medical 
        examinations, on account of age unless the Secretary 
        determines (based on data received or studies published 
        after the date of enactment of this section) that 
        different medical standards, or different, greater, or 
        more frequent medical examinations, are needed to 
        ensure an adequate level of safety in flight.
          (2) Duration of first-class medical certificate.--No 
        person who has attained 60 years of age may serve as a 
        pilot of an air carrier engaged in covered operations 
        unless the person has a first-class medical 
        certificate. Such a certificate shall expire on the 
        last day of the 6-month period following the date of 
        examination shown on the certificate.
  (h) Safety.--
          (1) Training.--Each air carrier engaged in covered 
        operations shall continue to use pilot training and 
        qualification programs approved by the Federal Aviation 
        Administration, with specific emphasis on initial and 
        recurrent training and qualification of pilots who have 
        attained 60 years of age, to ensure continued 
        acceptable levels of pilot skill and judgment.
          (2) Line evaluations.--Not later than 6 months after 
        the date of enactment of this section, and every 6 
        months thereafter, an air carrier engaged in covered 
        operations shall evaluate the performance of each pilot 
        of the air carrier who has attained 60 years of age 
        through a line check of such pilot. Notwithstanding the 
        preceding sentence, an air carrier shall not be 
        required to conduct for a 6-month period a line check 
        under this paragraph of a pilot serving as second in 
        command if the pilot has undergone a regularly 
        scheduled simulator evaluation during that period.
          (3) GAO report.--Not later than 24 months after the 
        date of enactment of this section, 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 concerning the effect, if any, 
        on aviation safety of the modification to pilot age 
        standards made by subsection (a).

Sec. 44730. Inspection of foreign repair stations

  Not later than one year after the date of enactment of this 
section, and annually thereafter, the Administrator of the 
Federal Aviation Administration shall submit to Congress a 
certification that each foreign repair station that is 
certified by the Administrator under part 145 of title 14, Code 
of Federal Regulations, and performs work on air carrier 
aircraft or components has been inspected by safety inspectors 
of the Administration not fewer than 2 times in the preceding 
calendar year.

           *       *       *       *       *       *       *


                           CHAPTER 453--FEES

Sec.
45301. General provisions.
     * * * * * * *
45305. Registration, certification, and related fees.

Sec. 45301. General provisions

  (a) * * *
  [(b) Limitations.--
          [(1) Authorization and impact considerations.--In 
        establishing fees under subsection (a), the 
        Administrator--
                  [(A) is authorized to recover in fiscal year 
                1997 $100,000,000; and
                  [(B) shall ensure that each of the fees 
                required by subsection (a) is reasonably 
                related to the Administration's costs, as 
                determined by the Administrator, of providing 
                the service rendered. Services for which costs 
                may be recovered include the costs of air 
                traffic control, navigation, weather services, 
                training and emergency services which are 
                available to facilitate safe transportation 
                over the United States, and other services 
                provided by the Administrator or by programs 
                financed by the Administrator to flights that 
                neither take off nor land in the United States. 
                The Determination of such costs by the 
                Administrator is not subject to judicial 
                review.
          [(2) Publication; comment.--The Administrator shall 
        publish in the Federal Register an initial fee schedule 
        and associated collection process as an interim final 
        rule, pursuant to which public comment will be sought 
        and a final rule issued.]
  (b) Establishment and Adjustment of Fees.--
          (1) In general.--In establishing and adjusting fees 
        under subsection (a), 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. 
        Services for which costs may be recovered include the 
        costs of air traffic control, navigation, weather 
        services, training, and emergency services which are 
        available to facilitate safe transportation over the 
        United States and 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. The determination of such 
        costs by the Administrator, and the allocation of such 
        costs by the Administrator to services provided, are 
        not subject to judicial review.
          (2) Adjustment of fees.--The Administrator shall 
        adjust the overflight fees established by subsection 
        (a)(1) by expedited rulemaking and begin collections 
        under the adjusted fees by October 1, 2008. In 
        developing the adjusted overflight fees, the 
        Administrator may seek and consider the recommendations 
        offered by an aviation rulemaking committee for 
        overflight fees that are provided to the Administrator 
        by June 1, 2008, and are intended to ensure that 
        overflight fees are reasonably related to the 
        Administrator's costs of providing air traffic control 
        and related services to overflights.
          (3) 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.
          (4) Costs defined.--In this subsection, the term 
        ``costs'' includes those costs associated with the 
        operation, maintenance, leasing costs, and overhead 
        expenses of the services provided and the facilities 
        and equipment used in such services, including the 
        projected costs for the period during which the 
        services will be provided.
          (5) Publication; comment.--The Administrator shall 
        publish in the Federal Register any fee schedule under 
        this section, including any adjusted overflight fee 
        schedule, and the associated collection process as an 
        interim final rule, pursuant to which public comment 
        will be sought and a final rule issued.

           *       *       *       *       *       *       *

  (e) Adjustments.--In addition to adjustments under subsection 
(b), the Administrator may periodically adjust the fees 
established under this section.

Sec. 45302. Fees involving aircraft not providing air transportation

  (a) * * *

           *       *       *       *       *       *       *

  (e) Effective Date.--[A fee]
          (1) In general.--A fee may not be imposed under this 
        section before the date on which the regulations 
        prescribed under sections 44111(d), 44703(f)(2), and 
        44713(d)(2) of this title take effect.
          (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.

           *       *       *       *       *       *       *


Sec. 45305. Registration, certification, and related fees

  (a) General Authority and Fees.--The Administrator of the 
Federal Aviation Administration shall establish the following 
fees for services and activities of the Administration:
          (1) $130 for registering an aircraft.
          (2) $45 for replacing an aircraft registration.
          (3) $130 for issuing an original dealer's aircraft 
        certificate.
          (4) $105 for issuing an aircraft certificate (other 
        than an original dealer's aircraft certificate).
          (5) $80 for issuing a special registration number.
          (6) $50 for issuing a renewal of a special 
        registration number.
          (7) $130 for recording a security interest in an 
        aircraft or aircraft part.
          (8) $50 for issuing an airman certificate.
          (9) $25 for issuing a replacement airman certificate.
          (10) $42 for issuing an airman medical certificate.
          (11) $100 for providing a legal opinion pertaining to 
        aircraft registration or recordation.
  (b) Fees Credited as Offsetting Collections.--
          (1) In general.--Notwithstanding section 3302 of 
        title 31, any fee authorized to be collected under this 
        section shall, subject to appropriation made in 
        advance--
                  (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; 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 
        periodically adjust the fees established by subsection 
        (a) when cost data from the cost accounting system 
        developed pursuant to section 45303(e) reveal that the 
        cost of providing the service is higher or lower than 
        the cost data that were used to establish the fee then 
        in effect.

           *       *       *       *       *       *       *


SUBPART IV--ENFORCEMENT AND PENALTIES

           *       *       *       *       *       *       *


                         CHAPTER 463--PENALTIES

Sec. 46301. Civil penalties

  (a) General Penalty.--(1) A person is liable to the United 
States Government for a civil penalty of not more than $25,000 
(or $1,100 if the person is an individual or small business 
concern) for violating--
          (A) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 411, chapter 413 
        (except sections 41307 and 41310(b)-(f)), chapter 415 
        (except sections 41502, 41505, and 41507-41509), 
        chapter 417 (except sections 41703, 41704, 41710, 
        41713, and 41714), chapter 419, subchapter II or III of 
        chapter 421, chapter 423, chapter 441 (except section 
        44109), section 44502(b) or (c), chapter 447 (except 
        sections 44717 and 44719-44723), chapter 449 (except 
        sections 44902, 44903(d), 44904, 44907(a)-(d)(1)(A) and 
        (d)(1)(C)-(f), and 44908), section 47107(b) (including 
        any assurance made under such section), or section 
        47133 of this title;

           *       *       *       *       *       *       *

  (c) Procedural Requirements.--(1) The Secretary of 
Transportation may impose a civil penalty for the following 
violations only after notice and an opportunity for a hearing:
          (A) a violation of subsection (b) of this section or 
        chapter 411, chapter 413 (except sections 41307 and 
        41310(b)-(f)), chapter 415 (except sections 41502, 
        41505, and 41507-41509), chapter 417 (except sections 
        41703, 41704, 41710, 41713, and 41714), chapter 419, 
        subchapter II of chapter 421, chapter 423, or section 
        44909 of this title.

           *       *       *       *       *       *       *

  (d) Administrative Imposition of Penalties.--(1)  * * *
  (2) The Administrator of the Federal Aviation Administration 
may impose a civil penalty for a violation of chapter 401 
(except sections 40103(a) and (d), 40105, 40106(b), 40116, and 
40117), chapter 441 (except section 44109), section 44502(b) or 
(c), chapter 447 (except sections 44717 and 44719-44723) or 
section 46301(b), 46302 (for a violation relating to section 
46504), 46318, 46319, or 47107(b) (as further defined by the 
Secretary under section 47107(l) and including any assurance 
made under section 47107(b)) of this title or a regulation 
prescribed or order issued under any of those provisions. The 
Secretary of Homeland Security may impose a civil penalty for a 
violation of chapter 449 (except sections 44902, 44903(d), 
44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), 
46302 (except for a violation relating to section 46504), 
46303, or a regulation prescribed or order issued under such 
chapter 449. The Secretary of Homeland Security or 
Administrator shall give written notice of the finding of a 
violation and the penalty.

           *       *       *       *       *       *       *


PART B--AIRPORT DEVELOPMENT AND NOISE

           *       *       *       *       *       *       *


                    CHAPTER 471--AIRPORT DEVELOPMENT

                    Subchapter I--Airport Improvement

Sec.
47101.  Policies.
     * * * * * * *
[47129.  Resolution of airport-air carrier disputes concerning airport 
          fees.]
47129.  Resolution of airport-carrier disputes concerning airport fees.
     * * * * * * *

SUBCHAPTER I--AIRPORT IMPROVEMENT

           *       *       *       *       *       *       *


Sec. 47102. Definitions

  
   In this subchapter--
          (1) * * *

           *       *       *       *       *       *       *

          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A) * * *
                  (B) acquiring for, or installing at, a 
                public-use airport--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iv) firefighting and rescue 
                        equipment at an airport that serves 
                        scheduled passenger operations of air 
                        carrier aircraft designed for more than 
                        [20] 9 passenger seats;

           *       *       *       *       *       *       *

                  (M) construction of mobile refueler parking 
                within a fuel farm at a nonprimary airport 
                meeting the requirements of section 112.8 of 
                title 40, Code of Federal Regulations.
                  (N) terminal development under section 
                47119(a).
                  (O) acquiring and installing facilities and 
                equipment to provide air conditioning, heating, 
                or electric power from terminal-based, non-
                exclusive 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.

           *       *       *       *       *       *       *

          (5) ``airport planning'' means planning as defined by 
        regulations the Secretary prescribes and includes 
        integrated airport system planning and developing an 
        environmental management system.

           *       *       *       *       *       *       *

          (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 that 
                2,500 passenger boardings each year.
          [(8)] (9) ``integrated airport system planning'' 
        means developing for planning purposes information and 
        guidance to decide the extent, kind, location, and 
        timing of airport development needed in a specific area 
        to establish a viable, balanced, and integrated system 
        of public-use airports, including--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(9)] (10) ``landed weight'' means the weight of 
        aircraft transporting only cargo in intrastate, 
        interstate, and foreign air transportation, as the 
        Secretary determines under regulations the Secretary 
        prescribes.
          [(10)] (11) ``large hub airport'' means a commercial 
        service airport that has at least 1.0 percent of the 
        passenger boardings.
          [(11)] (12) ``low-emission technology'' means 
        technology for vehicles and equipment whose emission 
        performance is the best achievable under emission 
        standards established by the Environmental Protection 
        Agency and that relies exclusively on alternative fuels 
        that are substantially nonpetroleum based, as defined 
        by the Department of Energy, but not excluding hybrid 
        systems or natural gas powered vehicles.
          [(12)] (13) ``medium hub airport'' means a commercial 
        service airport that has at least 0.25 percent but less 
        than 1.0 percent of the passenger boardings.
          [(13)] (14) ``nonhub airport'' means a commercial 
        service airport that has less than 0.05 percent of the 
        passenger boardings.
          [(14)] (15) ``passenger boardings''--
                  (A) * * *

           *       *       *       *       *       *       *

          [(15)] (16) ``primary airport'' means a commercial 
        service airport the Secretary determines to have more 
        than 10,000 passenger boardings each year.
          [(16)] (17) ``project'' means a project, separate 
        projects included in one project grant application, or 
        all projects to be undertaken at an airport in a fiscal 
        year, to achieve airport development or airport 
        planning.
          [(17)] (18) ``project cost'' means a cost involved in 
        carrying out a project.
          [(18)] (19) ``project grant'' means a grant of money 
        the Secretary makes to a sponsor to carry out at least 
        one project.
          [(19)] (20) ``public agency'' means--
                  (A) * * *

           *       *       *       *       *       *       *

          [(20)] (21) ``public airport'' means an airport used 
        or intended to be used for public purposes--
                  (A) * * *

           *       *       *       *       *       *       *

          [(21)] (22) ``public-use airport'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(22)] (23) ``reliever airport'' means an airport the 
        Secretary designates to relieve congestion at a 
        commercial service airport and to provide more general 
        aviation access to the overall community.
          (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.
          [(23)] (25) ``small hub airport'' means a commercial 
        service airport that has at least 0.05 percent but less 
        than 0.25 percent of the passenger boardings.
          [(24)] (26) ``sponsor'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(25)] (27) ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the 
        Virgin Islands, American Samoa, the Northern Mariana 
        Islands, the Trust Territory of the Pacific Islands, 
        and Guam.
          (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. 47103. National plan of integrated airport systems

  (a) General Requirements and Considerations.--The Secretary 
of Transportation shall maintain the plan for developing 
public-use airports in the United States, named ``the national 
plan of integrated airport systems''. The plan shall include 
the kind and estimated cost of eligible airport development the 
Secretary of Transportation considers necessary to provide a 
safe, efficient, and integrated system of public-use airports 
adequate to anticipate and meet the needs of civil aeronautics, 
to meet the national defense requirements of the Secretary of 
Defense, and to meet identified needs of the United States 
Postal Service. Airport development included in the plan may 
not be limited to meeting the needs of any particular classes 
or categories of public-use airports. In maintaining the plan, 
the Secretary of Transportation shall consider the needs of 
each segment of civil aviation and the relationship of [each 
airport to] the airport system to--
          (1) the rest of the transportation [system in the 
        particular area;] system, including connection to the 
        surface transportation network; and
          (2) forecasted technological developments in 
        aeronautics[; and].
          [(3) forecasted developments in other modes of 
        intercity transportation.]
  (b) Specific Requirements.--In maintaining the plan, the 
Secretary of Transportation shall--
          (1) to the extent possible and as appropriate, 
        consult with departments, agencies, and 
        instrumentalities of the United States Government, with 
        public agencies, and with the aviation community[;]; 
        and
          [(2) consider tall structures that reduce safety or 
        airport capacity; and]
          [(3)] (2) make every reasonable effort to address the 
        needs of air cargo operations[, Short Takeoff and 
        Landing/Very Short Takeoff and Landing aircraft 
        operations,] and rotary wing aircraft operations.

           *       *       *       *       *       *       *

  (d) Publication.--The Secretary of Transportation shall 
publish the [status of the] plan every 2 years.

Sec. 47104. Project grant authority

  (a) * * *

           *       *       *       *       *       *       *

  (c) Expiration of Authority.--After [September 30, 2007] 
September 30, 2011, the Secretary may not incur obligations 
under subsection (b) of this section, except for obligations of 
amounts--
          (1) * * *

           *       *       *       *       *       *       *


Sec. 47106. Project grant application approval conditioned on 
                    satisfaction of project requirements

  (a) * * *

           *       *       *       *       *       *       *

  (f) Competition Plans.--
          (1) Prohibition.--Beginning in fiscal year 2001, no 
        passenger facility [fee] charge may be approved for a 
        covered airport under section 40117 and no grant may be 
        made under this subchapter for a covered airport unless 
        the airport has submitted to the Secretary a written 
        competition plan in accordance with this subsection.
          (2) Contents.--A competition plan under this 
        subsection shall include information on the 
        availability of airport gates and related facilities, 
        leasing and sub-leasing arrangements, gate-use 
        requirements, [patterns of air service,] gate-
        assignment policy, financial constraints, airport 
        controls over air- and ground-side capacity, and 
        whether the airport intends to build or acquire gates 
        that would be used as common facilities[, and airfare 
        levels (as compiled by the Department of 
        Transportation) compared to other large airports].

           *       *       *       *       *       *       *


Sec. 47107. Project grant application approval conditioned on 
                    assurances about airport operations

  (a) General Written Assurances.--The Secretary of 
Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that--
          (1) * * *

           *       *       *       *       *       *       *

          (16) the airport owner or operator will maintain a 
        current layout plan of the airport that meets the 
        following requirements:
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) when an alteration in the airport or its 
                facility is made that does not conform to the 
                approved plan and that the Secretary decides 
                adversely affects the safety, utility, or 
                efficiency of any property on or off the 
                airport that is owned, leased, or financed by 
                the Government, the owner or operator, if 
                requested by the Secretary, will--
                          (i) * * *
                          (ii) bear all cost of relocating the 
                        property or its replacement to a site 
                        acceptable to the Secretary and of 
                        restoring the property or its 
                        replacement to the level of safety, 
                        utility, efficiency, and cost of 
                        operation that existed before the 
                        alteration was made, except in the case 
                        of a relocation or replacement of an 
                        existing airport facility that meets 
                        the conditions of section 47110(d);

           *       *       *       *       *       *       *

  (c) Written Assurances on Acquiring Land.--(1) * * *
  (2) The Secretary of Transportation may approve an 
application under this subchapter for an airport development 
project grant only if the Secretary receives written 
assurances, satisfactory to the Secretary, that if an airport 
owner or operator has received or will receive a grant for 
acquiring land and--
          (A) if the land was or will be acquired for a noise 
        compatibility purpose--
                  (i) * * *

           *       *       *       *       *       *       *

                  (iii) the part of the proceeds from disposing 
                of the land that is proportional to the 
                Government's share of the cost of acquiring the 
                land will be [paid to the Secretary for deposit 
                in the Airport and Airway Trust Fund 
                established under section 9502 of the Internal 
                Revenue Code of 1986 (26 U.S.C. 9502) or, as 
                the Secretary prescribes, reinvested in an 
                approved noise compatibility project, including 
                the purchase of nonresidential buildings or 
                property in the vicinity of residential 
                buildings or property previously purchased by 
                the airport as part of a noise compatibility 
                program] reinvested in another project at the 
                airport or transferred to another airport as 
                the Secretary prescribes under paragraph (4); 
                or
          (B) if the land was or will be acquired for an 
        airport purpose (except a noise compatibility 
        purpose)--
                  (i) * * *

           *       *       *       *       *       *       *

                  (iii) the part of the proceeds from disposing 
                of the land that is proportional to the 
                Government's share of the cost of acquiring the 
                land will be reinvested, on application to the 
                Secretary, in another eligible airport 
                development project the Secretary approves 
                under this subchapter or paid to the Secretary 
                for deposit in [the Fund] the Airport and 
                Airway Trust Fund established under section 
                9502 of the Internal Revenue Code of 1986 (26 
                U.S.C. 9502) if another eligible project does 
                not exist.

           *       *       *       *       *       *       *

          (4) Priorities for reinvestment.--In approving the 
        reinvestment or transfer of proceeds under subsection 
        (c)(2)(A)(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 sections 47114, 47115, or 47117.
                  (D) Transfer to a sponsor of another public 
                airport to be reinvested in an approved noise 
                compatibility project at such airport.
                  (E) Payment to the Secretary for deposit in 
                the Airport and Airway Trust Fund.

           *       *       *       *       *       *       *

  (e) Written Assurances of Opportunities for Small Business 
Concerns.--(1) * * *

           *       *       *       *       *       *       *

          (8) Mandatory training program for airport 
        concessions.--
                  (A) In general.--Not later than one year 
                after the date of enactment of the FAA 
                Reauthorization Act of 2007, the Secretary 
                shall establish a mandatory training program 
                for persons described in subparagraph (C) on 
                the certification of whether a small business 
                concern in airport concessions qualifies as a 
                small business concern owned and controlled by 
                a socially and economically disadvantaged 
                individual for purposes of paragraph (1).
                  (B) Implementation.--The training program may 
                be implemented by one or more private entities 
                approved by the Secretary.
                  (C) Participants.--A person referred to in 
                paragraph (1) is an official or agent of an 
                airport owner or operator who is required to 
                provide a written assurance under paragraph (1) 
                that the airport owner or operator will meet 
                the percentage goal of paragraph (1) or who is 
                responsible for determining whether or not a 
                small business concern in airport concessions 
                qualifies as a small business concern owned and 
                controlled by a socially and economically 
                disadvantaged individual for purposes of 
                paragraph (1).
                  (D) Authorization of appropriations.--There 
                are authorized to be appropriated such sums as 
                may be necessary to carry out this paragraph.
  [(8)] (9) Not later than April 29, 1993, the Secretary of 
Transportation shall prescribe regulations to carry out this 
subsection.

           *       *       *       *       *       *       *

  (s) Competition Disclosure Requirement.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Sunset provision.--This subsection shall cease to 
        be effective beginning October 1, [2008] 2012.

Sec. 47108. Project grant agreements

  (a) * * *

           *       *       *       *       *       *       *

  (e) Change in Airport Status.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Changes to nonhub primary status.--If the status 
        of a nonhub primary airport changes to a small hub 
        primary airport at a time when the airport has received 
        discretionary funds under this chapter for a terminal 
        development project in accordance with section 
        [47110(d)] 47119(a)(2), and the project is not yet 
        completed, the project shall remain eligible for 
        funding from the discretionary fund and the small 
        airport fund to pay costs allowable under section 
        [47110(d)] 47119(a). Such project shall remain eligible 
        for such funds for three fiscal years after the start 
        of construction of the project, or if the Secretary 
        determines that a further extension of eligibility is 
        justified, until the project is completed.

Sec. 47109. United States Government's share of project costs

  (a) General.--Except as [provided in subsection (b) or 
subsection (c) of this section] otherwise specifically provided 
in this section, the United States Government's share of 
allowable project costs is--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) 90 percent for a project at any other airport[;]; 
        and
          [(4) 70 percent for a project funded by the 
        Administrator from the discretionary fund under section 
        47115 at an airport receiving an exemption under 
        section 47134; and]
          [(5)] (4) for fiscal year 2002, 100 percent for a 
        project described in section 47102(3)(J), 47102(3)(K), 
        or 47102(3)(L).

           *       *       *       *       *       *       *

  (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 following such change in hub status.
  (f) Special Rule for Economically Depressed Communities.--The 
Government's share of allowable project costs shall be 95 
percent for a project at an airport that--
          (1) is receiving subsidized air service 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. 47110. Allowable project costs

  (a) * * *
  (b) Allowable Cost Standards.--A project cost is allowable--
          (1) * * *
          (2)(A) * * *

           *       *       *       *       *       *       *

  (C) if the Government's share is paid only with amounts 
apportioned under paragraphs (1) and (2) of section 47114(c) or 
section 47114(d)(3)(A) and if the cost is incurred--
                  (i) after September 30, 1996;
                  (ii) before a grant agreement is executed for 
                the project; and
                  (iii) 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 the 
                grant agreement had been executed; [or]
  (D) if the cost is incurred after September 11, 2001, for a 
project described in section 47102(3)(J), 47102(3)(K), or 
47102(3)(L) and shall not depend upon the date of execution of 
a grant agreement made under this subchapter[;]; or
  (E) 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 due to the short 
                construction season 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;
                  (iii) the sponsor notifies the Secretary 
                before authorizing work to commence on the 
                project; and
                  (iv) 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;

           *       *       *       *       *       *       *

  [(d) Terminal Development Costs.--(1) The Secretary may 
decide that the cost of terminal development (including multi-
modal terminal development) in a nonrevenue-producing public-
use area of a commercial service airport is allowable for an 
airport development project at the 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 of this title;
                  [(ii) all the security equipment required by 
                regulation; and
                  [(iii) provided for access, to the area of 
                the airport for passengers for boarding or 
                exiting aircraft, to those passengers boarding 
                or exiting aircraft, except 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) In making a decision under paragraph (1) of this 
subsection, 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.]
  (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.
  (e) Letters of Intent.--(1) * * *

           *       *       *       *       *       *       *

  (5) Letters of intent.--The Secretary may not require an 
eligible agency to impose a passenger facility [fee] charge 
under section 40117 in order to obtain a letter of intent under 
this section.

           *       *       *       *       *       *       *

  (h) Nonprimary Airports.--The Secretary may decide that the 
costs of construction of revenue producing aeronautical support 
facilities[, including fuel farms and hangars,] are allowable 
for an airport development project at a nonprimary airport if 
the Government's share of such costs is paid only with funds 
apportioned to the airport sponsor under section 47114(d)(3)(A) 
and if the Secretary determines that the sponsor has made 
adequate provision for financing airside needs of the airport.

           *       *       *       *       *       *       *


Sec. 47112. Carrying out airport development projects

  (a) * * *

           *       *       *       *       *       *       *

  (c) Veterans' Preference.--(1) In this subsection--
          (A) * * *
          (B) ``Vietnam-era veteran'' means an individual who 
        served on active duty (as defined in section 101 of 
        title 38) in the armed forces for more than 180 
        consecutive days, any part of which occurred after 
        August 4, 1964, and before May 8, 1975, and who was 
        [separated from] discharged or released from active 
        duty in the armed forces under honorable conditions.
          (C) ``Afghanistan-Iraq war veteran'' means an 
        individual who served on active duty (as defined by 
        section 101 of title 38) in the armed forces for a 
        period of more than 180 consecutive days, any part of 
        which occurred during the period beginning on September 
        11, 2001, and ending on the date prescribed by 
        presidential proclamation or by law as the last date of 
        Operation Iraqi Freedom, and who was separated from the 
        armed forces under honorable conditions.
  (2) A contract involving labor for carrying out an airport 
development project under a grant agreement under this 
subchapter must require that preference in the employment of 
labor (except in executive, administrative, and supervisory 
positions) be given to Vietnam-era [veterans and] veterans, 
Afghanistan-Iraq war veterans, and disabled veterans when they 
are available and qualified for the employment.
  (3) A contract involving labor for carrying out an airport 
development project under a grant agreement under this 
subchapter must require that a preference be given to the use 
of small business concerns (as defined in section 3 of the 
Small Business Act (15 U.S.C. 1632)) owned and controlled by 
disabled veterans.

           *       *       *       *       *       *       *


Sec. 47114. Apportionments

  (a) * * *

           *       *       *       *       *       *       *

  (d) Amounts Apportioned for General Aviation Airports.--
          (1) * * *
          (2) Apportionment.--[Except as provided in paragraph 
        (3), the Secretary] The Secretary shall apportion to 
        the States [18.5 percent] 10 percent of the amount 
        subject to apportionment for each fiscal year as 
        follows:
                  (A) * * *

           *       *       *       *       *       *       *

          [(3) Special rule.--In any fiscal year in which the 
        total amount made available under section 48103 is 
        $3,200,000,000 or more, rather than making an 
        apportionment under paragraph (2), the Secretary shall 
        apportion 20 percent of the amount subject to 
        apportionment for each fiscal year as follows:
                  [(A) To each airport, excluding primary 
                airports but including reliever and nonprimary 
                commercial service airports, in States the 
                lesser of--
                          [(i) $150,000; or
                          [(ii) 1/5 of the most recently 
                        published estimate of the 5-year costs 
                        for airport improvement for the 
                        airport, as listed in the national plan 
                        of integrated airport systems developed 
                        by the Federal Aviation Administration 
                        under section 47103.
                  [(B) Any remaining amount to States as 
                follows:
                          [(i) 0.62 percent of the remaining 
                        amount to Guam, American Samoa, the 
                        Commonwealth of the Northern Mariana 
                        Islands, and the Virgin Islands.
                          [(ii) Except as provided in paragraph 
                        (4), 49.69 percent of the remaining 
                        amount for airports, excluding primary 
                        airports but including reliever and 
                        nonprimary commercial service airports, 
                        in States not named in clause (i) in 
                        the proportion that the population of 
                        each of those States bears to the total 
                        population of all of those States.
                          [(iii) Except as provided in 
                        paragraph (4), 49.69 percent of the 
                        remaining amount for airports, 
                        excluding primary airports but 
                        including reliever and nonprimary 
                        commercial service airports, in States 
                        not named in clause (i) in the 
                        proportion that the area of each of 
                        those States bears to the total area of 
                        all of those States.]
          (3) Additional amount.--
                  (A) In general.--In addition to amounts 
                apportioned under paragraph (2) and subject to 
                subparagraph (B), the Secretary shall apportion 
                to each airport, excluding primary airports but 
                including reliever and nonprimary commercial 
                service airports, in States the lesser of--
                          (i) $150,000; or
                          (ii) 1/5 of the most recently 
                        published estimate of the 5-year costs 
                        for airport improvement for the 
                        airport, as listed in the national plan 
                        of integrated airport systems developed 
                        by the Federal Aviation Administration 
                        under section 47103.
                  (B) Reduction.--In any fiscal year in which 
                the total amount made available for 
                apportionment under paragraph (2) is less than 
                $300,000,000, the Secretary shall reduce, on a 
                prorated basis, the amount to be apportioned 
                under subparagraph (A) and make such reduction 
                available to be apportioned under paragraph 
                (2), so as to apportion under paragraph (2) a 
                minimum of $300,000,000.

           *       *       *       *       *       *       *

  (f) Reducing Apportionments.--
          (1) In general.--Subject to paragraph (3), an amount 
        that would be apportioned under this section (except 
        subsection (c)(2) in a fiscal year to the sponsor of an 
        airport having at least .25 percent of the total number 
        of boardings each year in the United States and for 
        which a [fee] charge is imposed in the fiscal year 
        under section 40117 of this title shall be reduced by 
        an amount equal to--
                  (A) in the case of a [fee] charge of $3.00 or 
                less, 50 percent of the projected revenues from 
                the [fee] charge in the fiscal year but not by 
                more than 50 percent of the amount that 
                otherwise would be apportioned under this 
                section; [and]
                  (B) except as provided by subparagraph (C), 
                in the case of a [fee] charge of more than 
                $3.00, 75 percent of the projected revenues 
                from the [fee] charge in the fiscal year but 
                not by more than 75 percent of the amount that 
                otherwise would be apportioned under this 
                section[.]; and
                  (C) in the case of a charge of more than 
                $4.50 imposed by the sponsor of an airport 
                enplaning at least one percent of the total 
                number of boardings each year in the United 
                States, 100 percent of the projected revenues 
                from the charge in the fiscal year but not more 
                than 100 percent of the amount that otherwise 
                would be apportioned under this section.
          (2) Effective date of reduction.--A reduction in an 
        apportionment required by paragraph (1) shall not take 
        effect until the first fiscal year following the year 
        in which the collection of the [fee] charge imposed 
        under section 40117 is begun.
          (3) Special rule for transitioning airports.--
                  (A) In general.--Beginning with the fiscal 
                year following the first calendar year in which 
                the sponsor of an airport has more than .25 
                percent of the total number of boardings in the 
                United States, the sum of the amount that would 
                be apportioned under this section after 
                application of paragraph (1) in a fiscal year 
                to such sponsor and the projected revenues to 
                be derived from the [fee] charge in such fiscal 
                year shall not be less than the sum of the 
                apportionment to such airport for the preceding 
                fiscal year and the revenues derived from such 
                [fee] charge in the preceding fiscal year.
                  (B) Effective period.--Subparagraph (A) shall 
                be in effect for fiscal year 2004.

Sec. 47115. Discretionary fund

  (a) * * *

           *       *       *       *       *       *       *

  (g) Minimum Amount To Be Credited.--
          (1) General rule.--In a fiscal year, there shall be 
        credited to the fund, out of amounts made available 
        under section 48103 of this title, an amount that is at 
        least equal to the [sum of--
                  [(A) $148,000,000; plus
                  [(B) the total amount required from the fund 
                to carry out in the fiscal year letters of 
                intent issued before January 1, 1996, under 
                section 47110(e) of this title or the Airport 
                and Airway Improvement Act of 1982.] sum of 
                $520,000,000.

           *       *       *       *       *       *       *

  (j) Marshall Islands, Micronesia, and Palau.--For [fiscal 
years 2004 through 2007] fiscal years 2008 through 2011, the 
sponsors of airports located in the Republic of the Marshall 
Islands, Federated States of Micronesia, and Republic of Palau 
shall be eligible for grants under this section and section 
47116.

           *       *       *       *       *       *       *


Sec. 47117. Use of apportioned amounts

  (a) * * *

           *       *       *       *       *       *       *

  (e) Special Apportionment Categories.--(1) The Secretary 
shall use amounts available to the discretionary fund under 
section 47115 of this title for each fiscal year as follows:
          (A) At least [35 percent] $300,000,000 for grants for 
        airport noise compatibility planning under section 
        47505(a)(2), for carrying out noise compatibility 
        programs under section 47504(c), for noise mitigation 
        projects approved in an environmental record of 
        decision for an airport development project under this 
        title, for compatible land use planning and projects 
        carried out by State and local governments under 
        section 47141, [and] for airport development described 
        in section 47102(3)(F), 47102(3)(K), or 47102(3)(L) to 
        comply with the Clean Air Act (42 U.S.C. 7401 et seq.), 
        and for water quality mitigation projects to comply 
        with the Federal Water Pollution Control Act (33 U.S.C. 
        1251 et. seq.) as approved in an environmental record 
        of decision for an airport development project under 
        this title. The Secretary may count the amount of 
        grants made for such planning and programs with funds 
        apportioned under section 47114 in that fiscal year in 
        determining whether or not [such 35 percent requirement 
        is] the requirements of the preceding sentence are 
        being met in that fiscal year.

           *       *       *       *       *       *       *


Sec. 47119. Terminal development costs

  (a) Terminal Development Projects.--
          (1) In general.--The Secretary 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.
  [(a)] (b) Repaying Borrowed Money.--
  (1) * * *

           *       *       *       *       *       *       *

  (3) Terminal development costs at primary airports.--An 
amount apportioned under section 47114 or available under 
subsection (b)(3) to a primary airport--
          (A) * * *

           *       *       *       *       *       *       *

        is available to repay immediately money borrowed and 
        used to pay the costs for such terminal development if 
        those costs would be allowable project costs under 
        [section 47110(d)] subsection (a).
  (4) Conditions for grant.--An amount is available for a grant 
under this subsection only if--
          (A) the sponsor submits the certification required 
        under [section 47110(d)] subsection (a);

           *       *       *       *       *       *       *

  (5) Applicability of certain limitations.--A grant under this 
subsection shall be subject to the limitations in [subsection 
(b)(1) and (2)] subsections (c)(1) and (c)(2).
  [(b)] (c) Availability of Amounts.--In a fiscal year, the 
Secretary may make available--
          (1)  * * *
          (2) on approval of the Secretary, not more than 
        $200,000 of the amount that may be distributed for the 
        fiscal year from the discretionary fund established 
        under section 47115 of this title--
                  (A) to a sponsor of a nonprimary commercial 
                service airport to pay project costs allowable 
                under [section 47110(d) of this title] 
                subsection (a); and
                  (B) to a sponsor of a reliever airport for 
                the types of project costs allowable under 
                [section 47110(d)] subsection (a), including 
                project costs allowable for a commercial 
                service airport that each year does not have 
                more than .05 percent of the total boardings in 
                the United States;
          (3) for use by a primary airport that each year does 
        not have more than .05 percent of the total boardings 
        in the United States, any part of amounts that may be 
        distributed for the fiscal year from the discretionary 
        fund and small airport fund to pay project costs 
        allowable under [section 47110(d) of this title] 
        subsection (a);
          (4) not more than $25,000,000 to pay project costs 
        allowable for the fiscal year under [section 47110(d) 
        of this title] subsection (a) for projects at 
        commercial service airports that were not eligible for 
        assistance for terminal development during the fiscal 
        year ending September 30, 1980, under section 20(b) of 
        the Airport and Airway Development Act of 1970; or
          (5) to a sponsor of a nonprimary airport, any part of 
        amounts apportioned to the sponsor for the fiscal year 
        under section 47114(d)(3)(A) for project costs 
        allowable under [section 47110(d)] subsection (a).
  [(c)] (d) Nonhub Airports.--With respect to a project at a 
commercial service airport which annually has less than 0.05 
percent of the total enplanements in the United States, the 
Secretary may approve the use of the amounts described in 
subsection (a) notwithstanding the requirements of sections 
47107(a)(17), 47112, and 47113.
  [(d)] (e) Determination of Passenger Boarding at Commercial 
Service Airports.--For the purpose of determining whether an 
amount may be distributed for a fiscal year from the 
discretionary fund in accordance with subsection (b)(2)(A) to a 
commercial service airport, the Secretary shall make the 
determination of whether or not a public airport is a 
commercial service airport on the basis of the number of 
passenger boardings and type of air service at the public 
airport in the calendar year that includes the first day of 
such fiscal year or the preceding calendar year, whichever is 
more beneficial to the airport.
  (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).

           *       *       *       *       *       *       *


Sec. 47124. Agreements for State and local operation of airport 
                    facilities

  (a) * * *
  (b) Air Traffic Control Contract Program.--[(1) The 
Secretary]
          (1) Contract tower program.--
                  (A) Continuation and extension.--The 
                Secretary shall continue the low activity 
                (Visual Flight Rules) level I air traffic 
                control tower contract program established 
                under subsection (a) of this section for towers 
                existing on December 30, 1987, and extend the 
                program to other towers as practicable.
                  (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).
  [(2) The Secretary]
          (2) General authority.--The Secretary may make a 
        contract with a qualified entity (as determined by the 
        Secretary) or, on a sole source basis, with a State or 
        a political subdivision of a State to allow the entity, 
        State, or subdivision to operate an airport traffic 
        control tower classified as a level I (Visual Flight 
        Rules) tower if the Secretary decides that the entity, 
        State, or subdivision has the capability to comply with 
        the requirements of this paragraph. The contract shall 
        require that the entity, State, or subdivision comply 
        with applicable safety regulations in operating the 
        facility and with applicable competition requirements 
        in making a subcontract to perform work to carry out 
        the contract.
          (3) Contract air traffic control tower program.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) Use of excess funds.--If the Secretary 
                finds that all or part of an amount made 
                available under this subparagraph is not 
                required during a fiscal year to carry out this 
                paragraph, the Secretary may use, during such 
                fiscal year, the amount not so required to 
                carry out the program continued under paragraph 
                (1).
                  [(E)] (F) Funding.--Of the amounts 
                appropriated pursuant to section 106(k), not 
                more than $6,500,000 for fiscal 2004, 
                $7,000,000 for fiscal year 2005, $7,500,000 for 
                fiscal year 2006, [and] $8,000,000 for fiscal 
                year 2007, $8,500,000 for fiscal year 2008, 
                $9,000,000 for fiscal year 2009, $9,500,000 for 
                fiscal year 2010, and $10,000,000 for fiscal 
                year 2011 may be used to carry out this 
                paragraph.
          (4) Construction of air traffic control towers.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Limitation on federal share.--The Federal 
                share of the cost of construction of a 
                nonapproach control tower under this paragraph 
                may not exceed [$1,500,000] $2,000,000.
  (c) Safety Audits.--The Secretary shall establish uniform 
standards and requirements for safety assessments of air 
traffic control towers that receive funding under this section.

           *       *       *       *       *       *       *


Sec. 47128. State block grant program

  (a) General Requirements.--The Secretary of Transportation 
shall [prescribe regulations] issue guidance to carry out a 
State block grant program. The [regulations] guidance shall 
provide that the Secretary may designate not more than 9 
qualified States for fiscal years 2000 and 2001 and 10 
qualified States for each fiscal year thereafter to assume 
administrative responsibility for all airport grant amounts 
available under this subchapter, except for amounts designated 
for use at primary airports.
  (b) Applications and Selection.--A State wishing to 
participate in the program must submit an application to the 
Secretary. The Secretary shall select a State on the basis of 
its application only after--
          (1) * * *

           *       *       *       *       *       *       *

          (4) finding that the State has agreed to comply with 
        United States Government standard requirements for 
        administering the block grant, 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; and

           *       *       *       *       *       *       *

  (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) supplement such analysis, as necessary, to meet 
        applicable Federal requirements.

Sec. 47129. Resolution of airport-[air carrier] carrier disputes 
                    concerning airport fees

  (a) Authority To Request Secretary's Determination.--
          (1) In general.--The Secretary of Transportation 
        shall issue a determination as to whether a fee imposed 
        upon one or more [air carriers (as defined in section 
        40102 of this title)] air carriers or foreign air 
        carriers (as such terms are defined in section 40102) 
        by the owner or operator of an airport is reasonable 
        if--
                  (A) a written request for such determination 
                is filed with the Secretary by such owner or 
                operator; or
                  (B) a written complaint requesting such 
                determination is filed with the Secretary by an 
                affected [air carrier] air carrier or foreign 
                air carrier within 60 days after such carrier 
                receives written notice of the establishment or 
                increase of such fee.

           *       *       *       *       *       *       *

  (c) Decisions By Secretary.--The final regulations, policy 
statements, or guidelines required in subsection (b) shall 
provide the following:
          (1) Not more than 120 days after an [air carrier] air 
        carrier or foreign air carrier files with the Secretary 
        a written complaint relating to an airport fee, the 
        Secretary shall issue a final order determining whether 
        such fee is reasonable.

           *       *       *       *       *       *       *

  (d) Payment Under Protest; Guarantee of [Air Carrier] Air 
Carrier and Foreign Air Carrier Access.--
          (1) Payment under protest.--
                  (A) In general.--Any fee increase or newly 
                established fee which is the subject of a 
                complaint that is not dismissed by the 
                Secretary shall be paid by the complainant [air 
                carrier] air carrier or foreign air carrier to 
                the airport under protest.
                  (B) Referral or credit.--Any amounts paid 
                under this subsection by a complainant [air 
                carrier] air carrier or foreign air carrier to 
                the airport under protest shall be subject to 
                refund or credit to the [air carrier] air 
                carrier or foreign air carrier in accordance 
                with directions in the final order of the 
                Secretary within 30 days of such order.
                  (C) Assurance of timely repayment.--In order 
                to assure the timely repayment, with interest, 
                of amounts in dispute determined not to be 
                reasonable by the Secretary, the airport shall 
                obtain a letter of credit, or surety bond, or 
                other suitable credit facility, equal to the 
                amount in dispute that is due during the 120-
                day period established by this section, plus 
                interest, unless the airport and the 
                complainant [air carrier] air carrier or 
                foreign air carrier agree otherwise.
                  (D) Deadline.--The letter of credit, or 
                surety bond, or other suitable credit facility 
                shall be provided to the Secretary within 20 
                days of the filing of the complaint and shall 
                remain in effect for 30 days after the earlier 
                of 120 days or the issuance of a timely final 
                order by the Secretary determining whether such 
                fee is reasonable.
          (2) Guarantee of [air carrier] air carrier and 
        foreign air carrier access.--Contingent upon an [air 
        carrier's] air carrier's or foreign air carrier's 
        compliance with the requirements of paragraph (1) and 
        pending the issuance of a final order by the Secretary 
        determining the reasonableness of a fee that is the 
        subject of a complaint filed under subsection 
        (a)(1)(B), an owner or operator of an airport may not 
        deny an [air carrier] air carrier or foreign air 
        carrier currently providing air service at the airport 
        reasonable access to airport facilities or service, or 
        otherwise interfere with an [air carrier's] air 
        carrier's or foreign air carrier's prices, routes, or 
        services, as a means of enforcing the fee.
  (e) Applicability.--This section does not apply to--
          (1) a fee imposed pursuant to a written agreement 
        with [air carriers] air carriers or foreign air 
        carriers using the facilities of an airport;

           *       *       *       *       *       *       *

  (f) Effect On Existing Agreements.--Nothing in this section 
shall adversely affect--
          (1) the rights of any party under any existing 
        written agreement between an [air carrier] air carrier 
        or foreign air carrier and the owner or operator of an 
        airport; or
          (2) the ability of an airport to meet its obligations 
        under a financing agreement, or covenant, that is in 
        force as of August 23, 1994.

           *       *       *       *       *       *       *


Sec. 47131. Annual report

  (a) General Rule.--Not later than [April 1] June 1 of each 
year, the Secretary of Transportation shall submit to Congress 
a report on activities carried out under this subchapter during 
the prior fiscal year. The report shall include--
          [(1) a detailed statement of airport development 
        completed;
          [(2) the status of each project undertaken;
          [(3) the allocation of appropriations;
          [(4) an itemized statement of expenditures and 
        receipts; and]
          (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

           *       *       *       *       *       *       *


Sec. 47133. Restriction on use of revenues

  (a) * * *
  (b) Exceptions.--[Subsection (a) shall not apply if]
          (1) Prior laws and agreements.--Subsection (a) shall 
        not apply if a provision enacted not later than 
        September 2, 1982, in a law controlling financing by 
        the airport owner or operator, or a covenant or 
        assurance in a debt obligation issued not later than 
        September 2, 1982, by the owner or operator, provides 
        that the revenues, including local taxes on aviation 
        fuel at public airports, from any of the facilities of 
        the owner or operator, including the airport, be used 
        to support not only the airport but also the general 
        debt obligations or other facilities of the owner or 
        operator.
          (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 subtitle 
                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, 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.

           *       *       *       *       *       *       *


Sec. 47134. Pilot program on private ownership of airports

  (a)  * * *
  (b) Approval of Applications.--The Secretary may approve, 
with respect to not more than 5 airports, applications 
submitted under subsection (a) granting exemptions from the 
following provisions:
          (1) Use of revenues.--
                  (A) In general.--The Secretary may grant an 
                exemption to a sponsor from the provisions of 
                sections 47107(b) and 47133 of this title (and 
                any other law, regulation, or grant assurance) 
                to the extent necessary to permit the sponsor 
                to recover from the sale or lease of the 
                airport such amount as may be approved--
                          (i) in the case of a primary airport, 
                        by at least [65 percent] 75 percent of 
                        the scheduled air carriers serving the 
                        airport and by scheduled and 
                        nonscheduled air carriers whose 
                        aircraft landing at the airport during 
                        the preceding calendar year, had a 
                        total landed weight during the 
                        preceding calendar year of at least [65 
                        percent] 75 percent of the total landed 
                        weight of all aircraft landing at the 
                        airport during such year; or
                          (ii) in the case of a nonprimary 
                        airport, by the Secretary after the 
                        airport has consulted with at least [65 
                        percent] 75 percent of the owners of 
                        aircraft based at that airport, as 
                        determined by the Secretary;

           *       *       *       *       *       *       *

  (c) Terms and Conditions.--The Secretary may approve an 
application under subsection (b) only if the Secretary finds 
that the sale or lease agreement includes provisions 
satisfactory to the Secretary to ensure the following:
          (1)  * * *

           *       *       *       *       *       *       *

          (4) Every fee of the airport imposed on an air 
        carrier on the day before the date of the lease of the 
        airport will not increase faster than the rate of 
        inflation unless a higher amount is approved--
                  (A) by at least [65 percent] 75 percent of 
                the air carriers serving the airport; and
                  (B) by air carriers whose aircraft landing at 
                the airport during the preceding calendar year 
                had a total landed weight during the preceding 
                calendar year of at least [65 percent] 75 
                percent of the total landed weight of all 
                aircraft landing at the airport during such 
                year.

           *       *       *       *       *       *       *

  (g) Passenger Facility Fees; [Apportionments;] Service 
Charges.--Notwithstanding that the sponsor of an airport 
receiving an exemption under subsection (b) is not a public 
agency, the sponsor shall not be prohibited from--
          (1) imposing a passenger facility [fee] charge under 
        section 40117 of this title[;]; or
          [(2) receiving apportionments under section 47114 of 
        this title; or]
          [(3)] (2) collecting reasonable rental charges, 
        landing fees, and other service charges from aircraft 
        operators under section 40116(e)(2) of this title.

           *       *       *       *       *       *       *

  (n) Prohibition on Receipt of Certain Funds.--An airport 
receiving an exemption under subsection (b) shall be prohibited 
from receiving apportionments under section 47114 or 
discretionary funds under section 47115.

           *       *       *       *       *       *       *


Sec. 47137. Airport security program

  (a) * * *

           *       *       *       *       *       *       *

  (g) Authorization of Appropriations.--Of the amounts made 
available to the Secretary under section 47115 in a fiscal 
year, the Secretary shall make available not less than 
[$5,000,000] $8,500,000 for the purpose of carrying out this 
section.

Sec. 47138. Pilot program for purchase of airport development rights

  (a) * * *

           *       *       *       *       *       *       *

  (f) Sunset.--This section shall not be in effect after 
September 30, 2007.

Sec. 47139. Emission credits for air quality projects

  (a) In General.--The Administrator of the Environmental 
Protection Agency, in consultation with the Secretary of 
Transportation, shall issue guidance on how to ensure that 
airport sponsors receive appropriate emission reduction credits 
for carrying out projects described in sections 40117(a)(3)(G), 
[47102(3)(F),] 47102(3)(K), and 47102(3)(L). Such guidance 
shall include, at a minimum, the following conditions:
          (1) * * *

           *       *       *       *       *       *       *

  (b) Assurance of Receipt of Credits.--As a condition for 
making a grant for a project described in section 
[47102(3)(F),] 47102(3)(K), 47102(3)(L), or 47140 or as a 
condition for granting approval to collect or use a passenger 
facility [fee] charge for a project described in section 
40117(a)(3)(G), [47103(3)(F),] 47102(3)(K), 47102(3)(L), or 
47140, the Secretary must receive assurance from the State in 
which the project is located, or from the Administrator of the 
Environmental Protection Agency where there is a Federal 
implementation plan, that the airport sponsor will receive 
appropriate emission credits in accordance with the conditions 
of this section.

           *       *       *       *       *       *       *


Sec. 47141. Compatible land use planning and projects by State and 
                    local governments

  (a) * * *

           *       *       *       *       *       *       *

  (f) Sunset.--This section shall not be in effect after 
[September 30, 2007] September 30, 2011.

           *       *       *       *       *       *       *


          SUBCHAPTER II--SURPLUS PROPERTY FOR PUBLIC AIRPORTS

Sec. 47151. Authority to transfer an interest in surplus property

  (a) * * *

           *       *       *       *       *       *       *

  (e) Requests by Public Agencies.--Except with respect to a 
request made by another department, agency, or instrumentality 
of the executive branch of the United States Government, such a 
department, agency, or instrumentality shall give priority 
consideration to a request made by a public agency (as defined 
in section 47102) for surplus property described in subsection 
(a) [(other than real property that is subject to section 2687 
of title 10, section 201 of the Defense Authorization 
Amendments and Base Closure and Realignment Act (10 U.S.C. 2687 
note), or section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (10 U.S.C. 2687 note))] for use at a 
public airport.

           *       *       *       *       *       *       *


SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

           *       *       *       *       *       *       *


Sec. 47173. Airport funding of FAA staff

  (a) Acceptance of Sponsor-Provided Funds.--Notwithstanding 
any other provision of law, the Administrator of the Federal 
Aviation Administration may accept funds from an airport 
sponsor, including funds provided to the sponsor under section 
47114(c), 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 an airport development project.] 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; or
          (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.

           *       *       *       *       *       *       *


Sec. 47175. Definitions

  
   In this subchapter, the following definitions apply:
          (1) * * *
          (2) Congested airport.--The term ``congested 
        airport'' means an airport that accounted for at least 
        1 percent of all delayed aircraft operations in the 
        United States in the most recent year for which such 
        data is available and an airport listed in table 1 of 
        the Federal Aviation Administration's [Airport Capacity 
        Benchmark Report 2001] 2001 and 2004 Airport Capacity 
        Benchmark Reports or table 1 of the Federal Aviation 
        Administration's most recent airport capacity benchmark 
        report.

           *       *       *       *       *       *       *


                           CHAPTER 475--NOISE

                      Subchapter I--Noise Abatement

Sec
47501. Definitions.
     * * * * * * *
47511. CLEEN engine and airframe technology partnership.

              Subchapter II--National Aviation Noise Policy

     * * * * * * *
[47531.  Penalties for violating sections 47528-47530.]
47531.  Penalties.
     * * * * * * *
47534. Prohibition on operating certain aircraft weighing 75,000 pounds 
          or less not complying with stage 3 noise levels.
     * * * * * * *

SUBCHAPTER I--NOISE ABATEMENT

           *       *       *       *       *       *       *


Sec. 47504. Noise compatibility programs

  (a) * * *

           *       *       *       *       *       *       *

  (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. 47511. CLEEN engine and airframe technology partnership

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall enter into a cooperative agreement, using 
a competitive process, with an institution, entity, or 
consortium to carry out a program for the development, 
maturing, and certification of CLEEN engine and airframe 
technology for aircraft over the next 10 years.
  (b) Cleen Engine and Airframe Technology Defined.--In this 
section, the term ``CLEEN engine and airframe technology'' 
means continuous lower energy, emissions, and noise engine and 
airframe technology.
  (c) Performance Objective.--The Administrator shall establish 
the following performance objectives for the program, to be 
achieved by September 30, 2015:
          (1) Development of certifiable aircraft technology 
        that reduces greenhouse gas emissions by increasing 
        aircraft fuel efficiency by 25 percent relative to 1997 
        subsonic jet aircraft technology.
          (2) Development of certifiable engine technology that 
        reduces landing and takeoff cycle nitrogen oxide 
        emissions by 50 percent, without increasing other 
        gaseous or particle emissions, over the International 
        Civil Aviation Organization standard adopted in 2004.
          (3) Development of certifiable aircraft technology 
        that reduces noise levels by 10 decibels at each of the 
        3 certification points relative to 1997 subsonic jet 
        aircraft technology.
          (4) Determination of the feasibility of the use of 
        alternative fuels in aircraft systems, including 
        successful demonstration and quantification of the 
        benefits of such fuels.
          (5) Determination of the extent to which new engine 
        and aircraft technologies may be used to retrofit or 
        re-engine aircraft to increase the integration of 
        retrofitted and re-engined aircraft into the commercial 
        fleet.
  (d) Funding.--Of amounts appropriated under section 48102(a), 
not more than the following amounts may be used to carry out 
this section:
          (1) $6,000,000 for fiscal year 2008.
          (2) $22,000,000 for fiscal year 2009.
          (3) $33,000,000 for fiscal year 2010.
          (4) $50,000,000 for fiscal year 2011.
  (e) Report.--Beginning in fiscal year 2009, the Administrator 
shall publish an annual report on the program established under 
this section until completion of the program.

SUBCHAPTER II--NATIONAL AVIATION NOISE POLICY

           *       *       *       *       *       *       *


Sec. 47524. Airport noise and access restriction review program

  (a) * * *

           *       *       *       *       *       *       *

  (e) Grant Limitations.--Beginning on the 91st day after the 
Secretary prescribes a regulation under subsection (a) of this 
section, a sponsor of a facility operating under an airport 
noise or access restriction on the operation of stage 3 
aircraft that first became effective after October 1, 1990, is 
eligible for a grant under section 47104 of this title and is 
eligible to impose a passenger facility [fee] charge under 
section 40117 of this title only if the restriction has been--
          (1)  * * *

           *       *       *       *       *       *       *


Sec. 47526. Limitations for noncomplying airport noise and access 
                    restrictions

  
   Unless the Secretary of Transportation is satisfied that an 
airport is not imposing an airport noise or access restriction 
not in compliance with this subchapter, the airport may not--
          (1) * * *
          (2) impose a passenger facility [fee] charge under 
        section 40117 of this title.

           *       *       *       *       *       *       *


Sec. 47531. Penalties [for violating sections 47528-47530]

  A person violating section 47528, [47529, or 47530] 47529, 
47530, or 47534 of this title or a regulation prescribed under 
any of those sections is subject to the same civil penalties 
and procedures under chapter 463 of this title as a person 
violating section 44701(a) or (b) or any of sections 44702-
44716 of this title.

Sec. 47532. Judicial review

  An action taken by the Secretary of Transportation under any 
of sections 47528-47531 or 47534 of this title is subject to 
judicial review as provided under section 46110 of this title.

           *       *       *       *       *       *       *


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

  (a) Prohibition.--Except as provided in subsection (b), (c), 
or (d), after December 31, 2012, 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) Exception.--Subsection (a) shall not apply to aircraft 
operated only outside the 48 contiguous States.
  (c) Exceptions.--The Secretary may allow temporary operation 
of an airplane 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 emergency situations.
          (8) To divert the aircraft to an alternative air port 
        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) Statutory Construction.--Nothing in the section may be 
construed as interfering with, nullifying, or otherwise 
affecting determinations made by the Federal Aviation 
Administration, or to be made by the Administration, with 
respect to applications under part 161 of title 14, Code of 
Federal Regulations, that were pending on the date of enactment 
of this section.

           *       *       *       *       *       *       *


PART C--FINANCING

           *       *       *       *       *       *       *


       CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec. 48101. Air navigation facilities and equipment

  (a) General Authorization of Appropriations.--Not more than a 
total of the following amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
          [(1) $3,138,000,000 for fiscal year 2004;
          [(2) $2,993,000,000 for fiscal year 2005;
          [(3) $3,053,000,000 for fiscal year 2006; and
          [(4) $3,110,000,000 for fiscal year 2007.]
          (1) $3,120,000,000 for fiscal year 2008.
          (2) $3,246,000,000 for fiscal year 2009.
          (3) $3,259,000,000 for fiscal year 2010.
          (4) $3,353,000,000 for fiscal year 2011.

           *       *       *       *       *       *       *

  [(c) Enhanced Safety and Security for Aircraft Operations in 
the Gulf of Mexico.--Of amounts appropriated under subsection 
(a), such sums as may be necessary for fiscal years 2004 
through 2007 may be used to expand and improve the safety, 
efficiency, and security of air traffic control, navigation, 
low altitude communications and surveillance, and weather 
services in the Gulf of Mexico.
  [(d) Operational Benefits of Wake Vortex Advisory System.--Of 
amounts appropriated under subsection (a), such sums as may be 
necessary for each of fiscal years 2004 through 2007 may be 
used for the development and analysis of wake vortex advisory 
systems.
  [(e) Ground-Based Precision Navigational Aids.--Of amounts 
appropriated under subsection (a), such sums as may be 
necessary for each of fiscal years 2004 to 2007 may be used to 
establish a program for the installation of a precision 
approach aid designed to improve aircraft accessibility at 
mountainous airports with limited land if the approach aid is 
able to provide curved and segmented approach guidance for 
noise abatement purposes and other such approach aids and is 
certified or approved by the Administrator.
  [(f) Automated Surface Observation System/automated Weather 
Observing System Upgrade.--Of the amounts appropriated under 
subsection (a), such sums as may be necessary may be used for 
the implementation and use of upgrades to the current automated 
surface observation system/automated weather observing system, 
if the upgrade is successfully demonstrated.
  [(g) Life-Cycle Cost Estimates.--The Administrator of the 
Federal Aviation Administration shall establish life-cycle cost 
estimates for any air traffic control modernization project the 
total life-cycle costs of which equal or exceed $50,000,000.
  [(h) Standby Power Efficiency Program.--Of amounts 
appropriated under subsection (a), such sums as may be 
necessary for each of fiscal years 2004 through 2007 may be 
used by the Secretary of Transportation, in cooperation with 
the Secretary of Energy and, where applicable, the Secretary of 
Defense, to establish a program to improve the efficiency, cost 
effectiveness, and environmental performance of standby power 
systems at Federal Aviation Administration sites, including the 
implementation of fuel cell technology.
  [(i) Pilot Program To Provide Incentives for Development of 
New Technologies.--Of amounts appropriated under subsection 
(a), $500,000 for fiscal year 2004 may be used for the conduct 
of a pilot program to provide operating incentives to users of 
the airspace for the deployment of new technologies, including 
technologies to facilitate expedited flight routing and 
sequencing of takeoffs and landings.]
  (c) Wake Vortex Mitigation.--Of amounts appropriated under 
subsection (a), such sums as may be necessary for each of 
fiscal years 2008 through 2011 may be used for the development 
and analysis of wake vortex mitigation, including advisory 
systems.
  (d) Weather Hazards.--
          (1) In general.--Of amounts appropriated under 
        subsection (a), such sums as may be necessary for each 
        of fiscal years 2008 through 2011 may be used for the 
        development of in-flight and ground-based weather 
        threat mitigation systems, including ground de-icing 
        and anti-icing systems and other systems for 
        predicting, detecting, and mitigating the effects of 
        certain weather conditions on both airframes and 
        engines.
          (2) Specific hazards.--Weather conditions referred to 
        in paragraph (1) include--
                  (A) ground-based icing threats such as ice 
                pellets and freezing drizzle;
                  (B) oceanic weather, including convective 
                weather, and other hazards associated with 
                oceanic operations (where commercial traffic is 
                high and only rudimentary satellite sensing is 
                available) to reduce the hazards presented to 
                commercial aviation, including convective 
                weather ice crystal ingestion threats; and
                  (C) en route turbulence prediction.
  (e) Safety Management Systems.--Of amounts appropriated under 
subsection (a) and section 106(k)(1), such sums as may be 
necessary for each of fiscal years 2008 through 2011 may be 
used to advance the development and implementation of safety 
management systems.
  (f) Runway Incursion Reduction Programs.--Of amounts 
appropriated under subsection (a), $8,000,000 for fiscal year 
2008, $10,000,000 for fiscal year 2009, $12,000,000 for fiscal 
year 2010, and $12,000,000 for fiscal year 2011 may be used for 
the development and implementation of runway incursion 
reduction programs.
  (g) Runway Status Lights.--Of amounts appropriated under 
subsection (a), $15,000,000 for fiscal year 2008, $27,000,000 
for fiscal year 2009, $12,000,000 for fiscal year 2010, and 
$20,000,000 for 2011 may be used for the acquisition and 
installation of runway status lights.

           *       *       *       *       *       *       *


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

  
   The total amounts which shall be available after [September 
30, 2003] September 30, 2007, to the Secretary of 
Transportation out of the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 
1986 (26 U.S.C. 9502) to make grants for airport planning and 
airport development under section 47104 of this title, airport 
noise compatibility planning under section 47505(a)(2) of this 
title, and carrying out noise compatibility programs under 
section 47504(c) of this title shall be--
          [(1) $3,400,000,000 for fiscal year 2004;
          [(2) $3,500,000,000 for fiscal year 2005;
          [(3) $3,600,000,000 for fiscal year 2006; and
          [(4) $3,700,000,000 for fiscal year 2007.]
          (1) $3,800,000,000 for fiscal year 2008;
          (2) $3,900,000,000 fiscal year 2009;
          (3) $4,000,000,000 fiscal year 2010; and
          (4) $4,100,000,000 fiscal year 2011.
Such sums shall remain available until expended.

           *       *       *       *       *       *       *


Sec. 48114. Funding for aviation programs

  (a) Authorization of Appropriations.--
          (1) Airport and airway trust fund guarantee.--
                  [(A) In general.--The total budget resources 
                made available from the Airport and Airway 
                Trust Fund each fiscal year through fiscal year 
                2007 pursuant to sections 48101, 48102, 48103, 
                and 106(k) of title 49, United States Code, 
                shall be equal to the level of receipts plus 
                interest credited to the Airport and Airway 
                Trust Fund for that fiscal year. Such amounts 
                may be used only for aviation investment 
                programs listed in subsection (b).]
                  (A) In general.--The total budget resources 
                made available from the Airport and Airway 
                Trust Fund each fiscal year through fiscal year 
                2011 pursuant to sections 48101, 48102, 48103, 
                and 106(k) shall--
                          (i) in each of fiscal years 2008 and 
                        2009, be equal to 95 percent of the 
                        estimated level of receipts plus 
                        interest credited to the Airport and 
                        Airway Trust Fund for that fiscal year; 
                        and
                          (ii) in each of fiscal years 2010 and 
                        2011, be equal to the sum of--
                                  (I) 95 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 aviation 
                investment programs listed in subsection (b).

           *       *       *       *       *       *       *

          (2) Additional authorizations of appropriations from 
        the general fund.--In any fiscal year through fiscal 
        year [2007] 2011, if the amount described in paragraph 
        (1) is appropriated, there is further authorized to be 
        appropriated from the general fund of the Treasury such 
        sums as may be necessary for the Federal Aviation 
        Administration Operations account.
  (b) Definitions.--In this section, the following definitions 
apply:
          (1) * * *
          (2) [Level] Estimated level of receipts plus 
        interest.--The term ``[level of receipts plus interest] 
        estimated level of receipts plus interest'' means the 
        level of excise taxes and interest credited to the 
        Airport and Airway Trust Fund under section 9502 of the 
        Internal Revenue Code of 1986 for a fiscal year as set 
        forth in the President's budget baseline projection as 
        defined in section 257 of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (Public Law 99-
        177) (Treasury identification code 20-8103-0-7-402) for 
        that fiscal year submitted pursuant to section 1105 of 
        title 31, United States Code.
  (c) Enforcement of Guarantees.--
          (1) * * *
          (2) Capital priority.--It shall not be in order in 
        the House of Representatives or the Senate to consider 
        any bill, joint resolution, amendment, motion, or 
        conference report that provides an appropriation (or 
        any amendment thereto) for any fiscal year through 
        fiscal year [2007] 2011 for Research and Development or 
        Operations if the sum of the obligation limitation for 
        Grants-in-Aid for Airports and the appropriation for 
        Facilities and Equipment for such fiscal year is below 
        the sum of the authorized levels for Grants-in-Aid for 
        Airports and for Facilities and Equipment for such 
        fiscal year.

           *       *       *       *       *       *       *


PART D--PUBLIC AIRPORTS

           *       *       *       *       *       *       *


             CHAPTER 491--METROPOLITAN WASHINGTON AIRPORTS

Sec.
49101.  Findings.
     * * * * * * *
[49108.  Limitations.]

           *       *       *       *       *       *       *


[Sec. 49108. Limitations

  [After October 1, 2008, the Secretary of Transportation may 
not approve an application of the Metropolitan Washington 
Airports Authority--
          [(1) for an airport development project grant under 
        subchapter I of chapter 471 of this title; or
          [(2) to impose a passenger facility fee under section 
        40117 of this title.]

           *       *       *       *       *       *       *

                              ----------                              


VISION 100-CENTURY OF AVIATION REAUTHORIZATION ACT

           *       *       *       *       *       *       *


TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

           *       *       *       *       *       *       *


Subtitle D--Miscellaneous

           *       *       *       *       *       *       *


SEC. 186. MIDWAY ISLAND AIRPORT.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Funding to Secretary of the Interior for Midway Island 
Airport.--The Secretary of Transportation may enter into a 
reimbursable agreement with the Secretary of the Interior for 
the purpose of funding airport development, as defined in 
section 47102(3) of title 49, United States Code, at Midway 
Island Airport for fiscal years ending before October 1, [2007] 
2011, from amounts available in the discretionary fund 
established by section 47115 of such title. The maximum 
obligation under the agreement for any such fiscal year shall 
be $2,500,000.

           *       *       *       *       *       *       *


TITLE VII--AVIATION RESEARCH

           *       *       *       *       *       *       *


SEC. 709. AIR TRANSPORTATION SYSTEM JOINT PLANNING AND DEVELOPMENT 
                    OFFICE.

  (a) Establishment.--(1) The Secretary of Transportation shall 
establish in the Federal Aviation Administration a joint 
planning and development office to manage work related to the 
Next Generation Air Transportation System. The office shall be 
known as the Next Generation Air Transportation System Joint 
Planning and Development Office (in this section referred to as 
the ``Office'').
  (2) The director of the Office shall be the Associate 
Administrator for the Next Generation Air Transportation 
System, who shall be appointed by the Administrator of the 
Federal Aviation Administration. The Associate Administrator 
shall report to the Administrator.
  [(2)] (3) The responsibilities of the office shall include--
          (A) * * *

           *       *       *       *       *       *       *

  [(3)] (4)(A) The Office shall operate in conjunction with 
relevant programs in the Department of Defense, the National 
Aeronautics and Space Administration, the Department of 
Commerce and the Department of Homeland Security. The Secretary 
of Transportation may request assistance from staff from those 
Departments and other Federal agencies.
  (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 ensure that--
          (i) 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); and
          (ii) 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.
  [(4)] (5) In developing and carrying out its plans, the 
Office shall consult with the public and ensure the 
participation of experts from the private sector including 
representatives of commercial aviation, general aviation, 
aviation labor groups, aviation research and development 
entities, aircraft and air traffic control suppliers, and the 
space industry.
  (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, to the maximum extent practicable, shall--
          (i) oversee the development of the integrated plan 
        under subsection (a)(3)(A);
          (ii) 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; 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 of the Next Generation Air 
Transportation System shall be a voting member of the Joint 
Resources Council of the Federal Aviation Administration.
  (b) Integrated Plan.--The integrated plan shall be designed 
to ensure that the Next Generation Air Transportation System 
meets air transportation safety, security, mobility, 
efficiency, and capacity needs [beyond those currently included 
in the Federal Aviation Administration's operational evolution 
plan] and accomplishes the goals under subsection (c). The 
integrated plan shall include--
          (1) * * *

           *       *       *       *       *       *       *

          (3) A multiagency research and development roadmap 
        for creating the next generation air transportation 
        system with the characteristics outlined under clause 
        (ii), including--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) the technical milestones that will be 
                used to evaluate the activities; [and]
          (4) a description of the operational concepts to meet 
        the system performance requirements for all system 
        users and a timeline and anticipated expenditures 
        needed to develop and deploy the system to meet the 
        vision for 2025[.]; and
          (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; and
                  (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.

           *       *       *       *       *       *       *

  [(d) Reports.-- The Administrator of the Federal Aviation 
Administration shall transmit to the Committee on Commerce, 
Science, and Transportation in the Senate and the Committee on 
Transportation and Infrastructure and the Committee on Science 
in the House of Representatives--
          [(1) not later than 1 year after the date of 
        enactment of this Act, the integrated plan required in 
        subsection (b); and
          [(2) annually at the time of the President's budget 
        request, a report describing the progress in carrying 
        out the plan required under subsection (b) and any 
        changes to that plan.]
  (d) Operational Evolution Partnership.--The Administrator of 
the Federal Aviation Administration shall develop and publish 
annually the document known as the ``Operational Evolution 
Partnership'', or any successor document, that provides a 
detailed description of how the agency is implementing the Next 
Generation Air Transportation System.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated to the Office $50,000,000 for each of the 
fiscal years 2004 through [2010] 2011.

SEC. 710. NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY COMMITTEE.

  (a) In General.--The Secretary of Transportation shall 
establish a senior policy committee to work with the Next 
Generation Air Transportation System Joint Planning and 
Development Office. The senior policy committee shall be 
chaired by the Secretary and shall meet at least twice each 
year.

           *       *       *       *       *       *       *

  (e) Annual Report.--
          (1) Submission to congress.--Not later than one 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 the Committee on Transportation and 
        Infrastructure and the Committee on Science of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate a report 
        summarizing the progress made in carrying out the 
        integrated work plan required by section 709(b)(5) and 
        any changes in that plan.
          (2) Contents.--The report shall include--
                  (A) a copy of the updated integrated work 
                plan;
                  (B) a description of the progress made in 
                carrying out the integrated work plan and any 
                changes in that plan, including any changes 
                based on funding shortfalls and limitations set 
                by the Office of Management and Budget;
                  (C) a detailed description of--
                          (i) the success or failure of each 
                        item of the integrated work plan for 
                        the previous year and relevant 
                        information as to why any milestone was 
                        not met; and
                          (ii) the impact of not meeting the 
                        milestone and what actions will be 
                        taken in the future to account for the 
                        failure to complete the milestone; and
                  (D) an explanation of any change to future 
                years in the integrated work plan and the 
                reasons for such change.

           *       *       *       *       *       *       *

                              ----------                              


                           RAILWAY LABOR ACT

                                TITLE I

                              definitions

  Section 1. When used in this Act and for the purposes of this 
Act--
  First. The term ``carrier'' includes any railroad subject to 
the jurisdiction of the Surface Transportation Board[, any 
express company that would have been subject to subtitle IV of 
title 49, United States Code, as of December 31, 1995,,] and 
any company which is directly or indirectly owned or controlled 
by or under common control with any carrier by railroad and 
which operates any equipment or facilities or performs any 
service (other than trucking service) in connection with the 
transportation, receipt, delivery, elevation, transfer in 
transit, refrigeration or icing, storage, and handling of 
property transported by railroad, and any receiver, trustee, or 
other individual or body, judicial or otherwise, when in the 
possession of the business of any such ``carrier'': Provided, 
however, That the term ``carrier'' shall not include any 
street, interurban, or suburban electric railway unless such 
railway is operating as a part of a general steam-railroad 
system of transportation, but shall not exclude any part of the 
general steam-railroad system of transportation now or 
hereafter operated by any other motive power. The Surface 
Transportation Board is hereby authorized and directed upon 
request of the Mediation Board or upon complaint of any party 
interested to determine after hearing whether any line operated 
by electric power falls within the terms of this proviso. The 
term ``carrier'' shall not include any company by reason of its 
being engaged in the mining of coal, the supplying of coal to a 
carrier where delivery is not beyond the mine tipple, and the 
operation of equipment or facilities therefor, or in any of 
such activities.

           *       *       *       *       *       *       *

  

                                TITLE II

  Sec. 201. [All] (a) In General.--All of the provisions of 
title I of this Act, except the provisions of section 3 
thereof, are extended to and shall cover every common carrier 
by air and every express carrier engaged in interstate or 
foreign commerce, and every carrier by air transporting mail 
for or under contract with the United States Government, and 
every air pilot or other person who performs any work as an 
employee or subordinate official of such carrier or carriers, 
subject to its or their continuing authority to supervise and 
direct the manner of rendition of his service.
  (b) Special Rules for Express Carriers.--
          (1) In general.--An employee of an express carrier 
        shall be covered by this Act only if that employee is 
        in a position that is eligible for certification under 
        part 61, 63, or 65 of title 14, Code of Federal 
        Regulations, and only if that employee performs duties 
        for the express carrier that are eligible for such 
        certification. All other employees of an express 
        carrier shall be covered by the provisions of the 
        National Labor Relations Act (29 U.S.C. 151 et seq.).
          (2) Air carrier status.--Any person that is an 
        express carrier shall be governed by paragraph (1) 
        notwithstanding any finding that the person is also a 
        common carrier by air.
          (3) Express carrier defined.--In this section, the 
        term ``express carrier'' means any person (or persons 
        affiliated through common control or ownership) whose 
        primary business is the express shipment of freight or 
        packages through an integrated network of air and 
        surface transportation.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    We acknowledge the important role the aviation sector plays 
in the Nation's economy and the need to ensure that critical 
capacity and safety needs of the system are met. We also 
recognize the need to properly lay the groundwork for the 
transformation to the Next Generation Air Traffic Control 
System. By reauthorizing Federal Aviation Administration (FAA) 
funding and safety oversight programs, H.R. 2881 takes an 
important step toward addressing the needs of the aviation 
system. We strongly support the air traffic control 
modernization, staffing, small community air service and 
environmental improvements that this bill would bring.
    However, while H.R. 2881 has many important provisions, two 
amendments to the bill were accepted during the full committee 
mark-up that we believe are very problematic from both a policy 
and a procedural perspective. We strongly oppose the inclusion 
of these two provisions in H.R. 2881 for the following reasons.
    The first provision accepted during full committee mark-up 
is the ``NATCA provision.'' This provision would repeal the FAA 
impasse process contained in current law (the same rules that 
were in place in 1998 when NATCA negotiated a very favorable 
contract); require the FAA and National Air Traffic Controllers 
Association (NATCA) to negotiate for 45 days; and, if 
negotiations fail, require binding arbitration pursuant to an 
impasse process set up by the provision. The ``NATCA 
provision'' would also reach back and void all contracts that 
were in impasse since July 2005, reinstate both the air traffic 
controller and multi-unit NATCA contracts, and provide up to 
$20 million for lost pay and benetIts. Of equal concern, the 
impasse process set up by the provision is untested and leaves 
many issues unaddressed. Because of this uncertainty, we 
anticipate years of lengthy and costly litigation at the end of 
any binding arbitration process. At the very least, the $1.86 
billion that the FAA and NATCA agreed would be saved by the 
2006 contract will be lost because the NATCA provision 
reinstates the terms of the 1998 contract (and all the raises 
and premium pay) until a final resolution is achieved. We 
believe that the ``NATCA provision'' sets a terrible precedent. 
By legislatively altering the contract negotiation proceedings 
almost a year after the contract was implemented, Congress 
wrongly inserts itself into the middle of a labor dispute 
between the FAA and NATCA and puts the entire FAA 
Reauthorization process in jeopardy.
    We believe that the right approach is to have the parties 
sit down together and settle the issues through one-on-one 
negotiations. Since January 2007, we have encouraged the 
parties to take this approach and were pleased over the last 
several months when efforts were taken by the parties to 
resolve their differences in this manner. We remain firmly 
committed to this approach to resolving the issues in dispute 
and will continue to apply pressure on both the FAA and NATCA 
to meet, negotiate and reach a mutually agreeable and fiscally 
responsible settlement agreement.
    We also support amending the FAA labor impasse process 
going forward and allowing binding arbitration. However, the 
point that must not be lost in the context of arbitration 
between the Federal Government and Federal employees is that if 
Congress does not appropriate funds to cover salaries, then the 
FAA will be forced to find that money somewhere else. This in 
turn will lead to less money for other FAA employees and 
programs. The budget pressures this provision imposes will also 
threaten important capacity and modernization projects. 
Therefore, any change to the FAA labor impasse process must be 
fair, transparent, and balanced, and must be considered in the 
context of the entire Federal budget while protecting the role 
of Congress in appropriating funding.
    There is no question that air traffic controllers are hard 
working professionals who do an outstanding job each and every 
day. They are also very well compensated for their good work. 
According to FAA data, for FY 2006 the average controller base 
salary (includes locality pay) was $117,249, average cash 
compensation was $131,662 (includes base salary and premium 
pays), and $171,140 for total average cash compensation and 
benefits. The Department of Transportation Inspector General's 
Office (DOT OIG) reviewed FAA's methodology and tested the data 
used to compile those figures and has validated those numbers 
as accurately refecting average controllers' salaries and 
benefIts. Compare that to the salary of military air traffic 
controllers in combat zones (U.S. Air Force Staff Sergeant with 
10 years service) who make $35,919. Between 1998 and 2006, air 
traffic controller compensation increased by an astounding 80%. 
In that same time period, the pay gap between FAA controllers 
and other FAA employees grew from 24% to almost 40%.
    We are very concerned that the ``NATCA provision'' is not 
intended to address the needs of the Nation's air 
transportation system. Rather, by inserting itself into the 
labor negotiations, voiding the new contract and reinstating 
the terms of the 1998 contract, Congress is putting the cost of 
maintaining the controllers' salary increases on others. In 
order to cover the controller salaries and back pay, other FAA 
employee groups would suffer furloughs and budget cuts and the 
FAA would be unable to hire much needed new controllers in FY 
2007 and FY2008. The FAA's efforts to modernize the air traffic 
control system would also be a victim of budget cuts. Delays 
and congestion in the system would go unaddressed and would be 
the unacceptable costs borne by the traveling public. If flying 
becomes unbearable, the entire aviation industry will be harmed 
and the one million jobs created by the industry will also be 
in jeopardy.
    We believe that the ``NATCA provision'' is both unfair and 
extremely costly. The FAA has estimated that the cost of this 
provision would be several million over two years (FY 2007 and 
2008) and over of several billion over the length of the 
reauthorization. The provision's impact on other FAA employees, 
the ongoing air traffic control modernization effort, and much 
needed safety and capacity projects would also be unacceptable. 
At the same time, however, we remain very much in favor of 
prospectively amending the current FAA labor impasse process in 
a way that is fair, cost effective, and reasonable for 
everyone. We also encourage the FAA and NATCA to continue 
settlement discussions and believe that the Administration's 
proposal to bring in an independent auditor to review the most 
recent offers would assist the parties' efforts to reach a 
mutually acceptable settlement of the matters in dispute.
    The second provision accepted during full committee mark-up 
is the ``FedEx provision.'' This provision would change the 
labor laws that apply to FedEx Express--an express carrier. 
When FedEx Express was organized back in 1971, it began as an 
airline, and as such was covered under the Railway Labor Act--
as are all rail and air companies. FedEx Express expanded its 
operations over the years and is now an integrated cargo 
operation with trucking operations dependent on its air carrier 
operations.
    The Railway Labor Act (RLA) differs from the National Labor 
Relations Act (NLRA) in that coverage is national in scope, 
whereas under the NLRA workers can organize on a local basis. 
The RLA recognizes the national scope of certain transportation 
services and the national disruption that can occur if there 
were to be a strike by a local unit within the national 
organization. This is particularly true in light of the fact 
that with a National and now global aviation industry, a strike 
by a local unit within a national organization could have far 
reaching and very disruptive and detrimental impacts to the 
U.S. economy.
    From a procedural perspective, we are very concerned that 
the ``FedEx provision'' ignores Congressional intent, targets 
one company; and has not been subject to public hearings, 
discussion or debate. The provision abandons Congress's 
balanced approach in labor organization matters and ignores the 
longstanding Congressional principles of hearings and 
appropriate procedure. Furthermore, it has potential unintended 
and adverse consequences that have never been considered or 
discussed in public hearings.
    For these reasons, we oppose the inclusion of the ``NATCA 
provision'' and the ``FedEx provision'' in H.R. 2881 as 
reported out of Committee.
                                   John L. Mica.
                                   Howard Coble.
                                   Vernon J. Ehlers.
                                   Henry E. Brown, Jr.
                                   Bill Shuster.
                                   Mario Diaz-Balart.
                                   Jean Schmidt.
                                   Mary Fallin.
                                   Thomas E. Petri.
                                   John J. Duncan, Jr.
                                   Gary G. Miller.
                                   Sam Graves.
                                   John Boozman.
                                   Connie Mack.
                                   Thelma Drake.
                                   Vern Buchanan.

                                  
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