[Senate Report 110-144]
[From the U.S. Government Publishing Office]
110th Congress
1st Session SENATE Report
110-144
_______________________________________________________________________
Calendar No. 329
AVIATION INVESTMENT AND MODERNIZATION ACT OF 2007
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1300
DATE deg.August 3, 2007.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred tenth congress
first session
DANIEL K. INOUYE, Hawaii, Chairman
TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West JOHN McCAIN, Arizona
Virginia TRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California GORDON H. SMITH, Oregon
BILL NELSON, Florida JOHN ENSIGN, Nevada
MARIA CANTWELL, Washington JOHN E. SUNUNU, New Hampshire
FRANK R. LAUTENBERG, New Jersey JIM DeMINT, South Carolina
MARK PRYOR, Arkansas DAVID VITTER, Louisiana
THOMAS CARPER, Delaware JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
Margaret Cummisky, Staff Director and Chief Counsel
Lila Helms, Deputy Staff Director and Policy Director
Jean Toal Eisen, Senior Professional Staff
Christine Kurth, Republican Staff Director and General Counsel
Kenneth Nahigian, Republican Deputy Staff Director and Chief Counsel
Calendar No. 329
110th Congress Report
SENATE
1st Session 110-144
======================================================================
AVIATION INVESTMENT AND MODERNIZATION ACT OF 2007
_______
August 3, 2007.--Ordered to be printed
_______
Mr. Inouye, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 1300]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 1300) 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 modernize the air
traffic control system, and for other purposes, having
considered the same, reports favorably thereon without
amendment deg. with amendments deg. with amendments
and recommends that the bill joint resolution deg. (as
amended) do pass.
Purpose of the Bill
The Aviation Investment and Modernization Act of 2007, S.
1300, as reported, would: (a) reauthorize the FAA for four
years, including the authorization of funding for the FAA's
Operations, Facilities and Equipment (F&E), Airport Improvement
Program (AIP), and Research, Engineering, and Development
(R,E,&D) accounts; (b) provide dedicated funding for
modernization and improve oversight to ensure that FAA manages
and implements the Next Generation Air Transportation System
(NextGen) in a safe, efficient, and effective manner; (c)
streamline the passenger facility charge (PFC) process; (d)
strengthen programs for traveling consumers and small community
access to air service; and (e) promote environmental and safety
improvements to the National Airspace System (NAS).
Background and Needs
The FAA employs about 47,000 people and has an annual budget
of approximately $14 billion. It regulates nearly all aspects
of aviation, including safety, manufacturing, and licensing. It
also operates the Nation's air traffic control (ATC) system,
which includes nearly 15,000 controllers and thousands of
pieces of equipment and facilities. Modernizing the ATC system
is one of the major challenges currently facing the FAA.
A primary concern regarding the reauthorization of FAA is
ensuring that the air transportation system is modernized to
keep pace with the projected growth in demand for air travel
over the coming decades. According to the FAA, in 2005, 738
million passengers flew on U.S. commercial air carriers,
compared with 579 million in 1995 and 395 million in 1985. The
FAA forecasts this figure to reach one billion passengers
before 2020. Congestion and delay problems have increased with
the growth in air traffic, which negatively affects travelers
and the economy. A recent economic study \1\ reported
commercial airline passenger delays in 2000, which averaged 12
minutes per flight segment, totaled 142 million hours of
passenger delay, and amounted to $9.4 billion in U.S. delay
costs. Hundreds of millions of dollars in additional delay
costs accrued to general aviation (GA) and commercial cargo
operators.
---------------------------------------------------------------------------
\1\ The National Economic Impact of Civil Aviation, July 2002, DRI-
WEFA, Inc., A Global Insight Company.
---------------------------------------------------------------------------
The FAA has begun the process of modernizing the air
transportation system through the establishment of the Joint
Planning and Development Office (JPDO) and the implementation
of plans for NextGen. NextGen is intended to transform the
current ground-based radar system into a networked, satellite-
based system. The Committee expects that NextGen will use
advanced computers, precision guidance through Global
Positioning Systems, computer-based decision assistance
programs, on-board automation, and data-link communications.
Expanding the current system to meet the anticipated growth in
air traffic is not feasible because the current system is
reaching the technical limits of its potential for growth. In
addition to the efforts at the JPDO, the FAA is incorporating
critical NextGen operational concepts and changes into its
Operational Evolution Plan (OEP).
Significant progress has been made towards modernization of
the NAS as a result of FAA's on-going efforts. The FAA is
beginning to put into operation three significant modernization
programs: Automatic Dependent Surveillance Broadcast (ADS-B);
Airport Surface Detection Equipment, Model X; and the System-
Wide Information Management system (SWIM). However, the bulk of
the agency's efforts still fall within the planning phase, and
industry stakeholders have raised concerns regarding the pace
of modernization, the potential scope of NextGen's
implementation, unclear equipage costs and needs for the
private sector, and FAA and JPDO's ability to lead this
comprehensive effort. Suggested changes from stakeholders have
included finishing and publishing the enterprise architecture,
or blueprints, for NextGen and fast-tracking the planning and
implementation of key modernization programs. The FAA has
proposed a demonstration pilot program for key NextGen
technologies, and recently published its concept of operations
for NextGen, which is a precursor to the enterprise
architecture.
The FAA estimates it will cost the Federal Government
approximately $15 to $22 billion to modernize the ATC system
between now and 2025. However, estimating costs over a long
timeframe for complex systems is a difficult task, particularly
as the NextGen system is expected to evolve to some extent, so
cost estimates in the near-term have more certainty compared to
later years. The FAA has budgeted approximately $4.6 billion
for modernization over the next 5 years. Just over $900 million
of this funding is for the core NextGen programs ADS-B, SWIM,
and other demonstration projects for testing modernization
technologies. Partner agencies will contribute another $300
million for NextGen projects in fiscal year (FY) 2008. In
addition to the Federal investment in ATC infrastructure, it is
estimated there will be an additional investment of $14 to $20
billion required by the private sector for avionics, with
manufacturers estimating that it could cost between $200,000
and $500,000 per plane to retrofit commercial aircraft with the
necessary avionics. Avionics manufacturers also indicate that
it could take two to three years to work out technical and
performance standards and another five to seven years to
complete the manufacturing and certification processes for the
required avionics.
Some stakeholders have raised concerns that the Airport and
Airway Trust Fund (Trust Fund) will not provide sufficient
funding for modernization and that the current tax and fee
system supporting the Trust Fund is inequitable. Congress
created the Trust Fund in the Airport and Airway Revenue Act of
1970 (P.L. 91-258) to provide a dedicated source of funding for
aviation programs. The Trust Fund collects aviation excise
taxes and other fees that fund a large portion of the FAA's
annual budget. The primary taxes and fees are levied on
passenger tickets, passenger flight segments, international
arrivals and departures, cargo waybills, and aviation fuels.
The Trust Fund provides all funding for the FAA's AIP, F&E,
R,E,&D accounts, and has contributed significantly to the
agency's Operations account. The FAA's Operations, as a result
of long-standing agreements, also receives funding from U.S.
Treasury General Fund (General Fund). The split between Trust
Fund and General Fund monies for Operations funding remains
controversial. Initially, the Trust Fund was envisioned as the
means to fund only the NAS infrastructure and modernization
needs, but over time has generally also paid for large portions
of the FAA's Operating budget.
Trust Fund revenues have consistently fallen over the past
several years due in part to a downturn in passenger air
traffic. In addition, the uncommitted balance in the Trust Fund
has fallen because actual revenue receipts have fallen short of
previous revenue estimates. Under current law, the amount
appropriated from the Trust Fund annually is based on estimates
made prior to the year in which the revenues are collected.
Over the past several years, revenues have been overestimated
in the appropriation process compared to the actual
collections, and the uncommitted balance has been drawn down to
make up the difference.
If future revenue estimates for the Trust Fund continue to
be inaccurate, the results could be serious. The transition
from the current ATC system to a modernized one will require
FAA to operate and potentially pay for both systems until the
agency is certain the new one is operating safely and has an
appropriate back-up system in place. If the Trust Fund is
depleted, either additional General Funds would have to be
secured, or there would need to be significant cuts to FAA's
budget. To some extent, over the past several years, these
consequences have already occurred. Despite budgetary
protections, Congress has systematically under-funded FAA
modernization by providing only 85 percent of authorized
funding levels for the F&E account since 2003.
Given the concerns over the financial status of the Trust
Fund, the Committee's FAA reauthorization proposal sought to
ensure that there would be enough funding to support
modernization of the system and the benefits it would provide.
S. 1300 would create a dedicated surcharge of $25 per flight to
fund modernization of the air transportation system. This
surcharge is estimated to raise about $400 million annually for
modernization, with commercial aircraft expected to pay more
than $350 million of the total. The surcharge also would be
levied on high-performance GA jet and turboprop aircraft that
fly into controlled airspace. The surcharge has been estimated
to raise about $40 million a year from this segment of the
industry. Piston-engine aircraft, which account for
approximately 90 percent of the GA fleet, would be completely
exempted from the surcharge.
The $25 surcharge will have a minimal affect on the costs
of operating the jet aircraft to which the surcharge will apply
as it represents a small percentage of the operating costs of
high-performance aircraft. The average cost of operating
turboprops and corporate jets ranges from approximately $800
per hour to more than $6,000 per hour.
The $25 surcharge is also minimal relative to the
investments made to purchase these aircraft. The purchase price
for an up to 9-seat single-engine turboprop aircraft starts at
about $1.3 million and can reach $3.3 million, while larger
multi-engine turboprop aircraft range from $1.4 million to $6.1
million. Turbojets are even more expensive. For example, the
Cessna Citation Encore CE-560 costs about $8 million to
purchase, while the larger Gulfstream G-V ranges from $30
million to $40 million. The Eclipse 500, one of the new
generation of very light jets (VLJs), has an estimated price of
$1.5 million.
Summary of Provisions
TITLE I--AUTHORIZATIONS AND FINANCING
Title I reauthorizes the FAA's four accounts: Operations;
F&E; the AIP; and R,E,&D at specific amounts for the FYs 2008
through 2011. Table 1 provides details of the proposed
authorized amounts for the four major accounts.
TABLE 1: PROPOSED AUTHORIZED AMOUNTS FOR FAA ACCOUNTS
(dollars in millions)
------------------------------------------------------------------------
2008 2009 2010 2011
------------------------------------------------------------------------
Operations-----------------------------8,726----8,978----9,305----9,590-
------------------------------------------------------------------------
Facilities & Equipment 2,572 2,923 3,079 3,317
------------------------------------------------------------------------
Research Engineering & Development 140 191 191 194
------------------------------------------------------------------------
Airport Improvement Program 3,800 3,900 4,000 4,100
------------------------------------------------------------------------
Total 15,238 15,992 16,575 17,201
------------------------------------------------------------------------
The authorized levels of funding for Operations, F&E, and
R,E,&D are consistent with the Administration's proposed needs
for these accounts. The authorizations for AIP are set at
levels higher than the Administration's proposal but consistent
with funding levels authorized in Vision 100-Century of
Aviation Reauthorization Act (Vision 100, P.L. 108-176). The
existing budgetary protections for FAA's accounts also are
extended through 2011.
A provision is included in Title I creating an Air Traffic
Modernization Fund (modernization fund) to ensure sufficient
funding is provided for modernization. The modernization fund
would be supported through a surcharge of $25 per flight on
commercial and GA jet and turboprop flights, which access
airspace controlled by FAA. The estimated $400 million raised
annually from the surcharge would be specifically dedicated to
modernization costs approved by the Air Traffic Control
Modernization Oversight Board (Modernization Board). Use of the
fund may include F&E account expenditures or repayment of bonds
issued under the proposed bonding authority. The bill proposes
providing FAA authority to issue up to $5 billion in bonds
between 2009 and 2025 to support modernization costs.
The bill includes a number of exemptions from the $25
surcharge. Jet aircraft exempted include government and
military aircraft, agricultural aircraft, and air ambulance
flights. Training flights also may be exempted at the
discretion of the FAA Administrator. Approximately 90 percent
of the GA fleet is exempt from the surcharge as it is comprised
primarily of piston-powered aircraft. The Committee also
recognizes the unique nature and reliance that Alaska and
Hawaii have on aviation for the transport of basic goods. The
Committee provision specifically exempts all intrastate flights
in Alaska and Hawaii from the $25 surcharge except those
flights that both originate and terminate in airspace
controlled by a terminal radar approach control facility
(TRACON) or a Combined Center/Radar Approach Control facility.
The exemption ensures that only intrastate flights that fully
utilize air traffic services are subject to the $25-per-flight
surcharge. To understand Alaska and Hawaii's reliance on
aviation it is important to take into account each State's
size, environment, and infrastructure. While Alaska is the
largest State with respect to land area, it has approximately
14,000 miles of public roads, which is equivalent to the miles
of road in Vermont, a State with less than 2 percent of the
land area of Alaska. Furthermore, 70 percent of Alaska's
communities are not connected to a land highway system. This
lack of highway infrastructure creates a situation where
commuter and air taxi flights routinely serve as the
traditional road system, making aircraft essential for
personal, commercial, cargo, and mail transportation to most
Alaskan communities.
Of the $400 million raised by the new surcharge, estimates
by the Committee, in consultation with FAA, suggest commercial
airlines would contribute more than $350 million of the total,
while GA jet and turboprop flights would make up the
difference. A provision prevents the FAA from collecting the
surcharge if appropriations for the F&E account in a given year
do not at least equal authorized amounts. The revenues from
this $25 surcharge are treated as offsetting collections to the
appropriation for F&E.
The Committee expects the FAA to report to Congress on the
impact the $25-per-flight surcharge will have on the aviation
industry by June 30, 2008.
TITLE II--AIRPORT IMPROVEMENTS
Title II focuses on the AIP and the PFC program and
proposes a number of new initiatives to aid airport
development. The first provision would streamline the PFC
process by simplifying approval requirements for imposing or
amending PFCs, while still retaining audit controls and FAA
oversight of projects and expenditures. Additional requirements
would be imposed for proposing to increase PFCs or using the
revenue for inter-modal projects. This process is based on a
successful pilot program for streamlining the PFC process
authorized for small airports in Vision 100.
This section also would require the Secretary of
Transportation to establish and conduct a pilot program to
allow six airports to impose a PFC without regard to dollar
amount limitations. The six airports in the program would be
required to collect the charge from a passenger at the airport,
via the Internet, or in any other reasonable manner, except
that these airports could not collect the fee through an air
carrier. The same eligibility and oversight criteria applied
under the regular PFC authority would still apply to the use of
the fees collected through this program.
A second pilot program would permit the FAA to transfer to
the airport the responsibility for certain terminal area
navigation equipment, such as instrument landing and approach
lighting systems. The airports would be required to operate and
maintain transferred equipment in accordance with FAA
standards, allow periodic FAA inspections, and replace the
equipment when needed. The provision includes explicit
authority for airports to add to their airfield rate base any
costs of owning and operating the equipment. Other Title II
provisions would: (a) expand eligibility for the AIP noise set-
aside program and guarantee a minimum amount of funding; (b)
authorize AIP funding for studies to optimize airport
operational procedures for near-term environmental
improvements; and (c) authorize a pilot program to demonstrate
the value of experimental environmental technologies at
airports.
The Committee has long held an interest in the O'Hare
Modernization Program (OMP). The Committee supports the
progress being made to significantly reduce delays and increase
capacity at this airport that is integral to the Nation's
entire airport system. One of the distinctive elements of the
OMP is the focus on the use of sustainable development
initiatives in airport construction. The Committee encourages
the FAA to work with the OMP to implement these important
environmental initiatives.
TITLE III--FAA ORGANIZATION AND REFORM
Title III focuses on FAA management practices and would
establish a Modernization Board to provide specific oversight
of FAA's modernization activities. The Modernization Board's
responsibilities would include: (a) providing advice on the
strategic plan for FAA modernization; (b) approving
modernization expenditures in excess of $100 million; and (c)
approving selections of the leaders for the Air Traffic
Organization (ATO) and the JPDO. The Modernization Board would
be composed of seven members: the FAA Administrator, a
Department of Defense (DOD) representative, one member
representing the public interest, one Chief Executive Officer
(CEO) of an airport, one CEO of a passenger or cargo airline,
one FAA labor union representative, and one GA representative.
The Modernization Board would replace the Federal Aviation
Management Advisory Council and the Air Traffic Services
Subcommittee.
To support the implementation of the ADS-B system, a pilot
program would be established to allow State and local
governments, including airports, to purchase, operate, and
maintain ADS-B ground equipment. Under this pilot program,
acquisition of this equipment would be eligible for AIP grants
at a 90 percent Federal match. The provision includes language
to provide flexibility in contracting to the FAA and project
sponsors to permit the most efficient acquisition of ground
stations funded under the pilot program.
This title also would establish a new process for resolving
collective bargaining labor disputes at the FAA that are at an
impasse. The Administrator of the FAA and an employees' union
would be required first to use the mediation services of the
Federal Mediation and Conciliation Service (FMCS) should an
impasse be reached during the collective bargaining process. If
mediation fails, then the Administrator and the employees'
union would be required to use a unique process at the Federal
Services Impasses Panel (FSIP) for purposes of resolving the
issues through binding arbitration using a private arbitration
board consisting of three members. Specifically, the provision
would establish a process whereby the FSIP Administrator would
request the Director of FMCS identify at least 15 arbitrators
from the private sector that have Federal Government experience
from which the FAA Administrator and the employees' union each
would choose one. The two arbitrators chosen would then select
a third arbitrator from the original list. If the two
arbitrators are unable to agree on a third arbitrator, the FAA
and the employees' union would select the third arbitrator by
alternately striking names from the list of remaining
arbitrators until one name remains. In rendering any decisions
the arbitration board is required to take into consideration
the effect of its arbitration decisions on the FAA's ability to
attract and retain a qualified workforce and on the agency's
budget. Decisions of the arbitration board must be reached
within 90 days of appointment and are conclusive and binding.
Jurisdiction over the enforcement of the arbitration decisions
would be in the U.S. District Court for the District of
Columbia.
In addition, Title III would require the FAA to conduct an
assessment of the agency's facility needs under the NextGen
system. The Modernization Board would review this assessment
and then make recommendations to the President, the Senate
Commerce Committee, and the House Transportation and
Infrastructure Committee. Other provisions include a
clarification of FAA's authority to enter into reimbursable
agreements and a requirement for FAA to issue a report and
finalize a rulemaking on ADS-B. The FAA has identified ADS-B
technology as the backbone of future surveillance in the NAS. A
Program Office to oversee ADS-B implementation has been
established, and it is moving forward with the initial project
to purchase and install the necessary ADS-B ground stations.
However, the real benefits to the system, in terms of increased
efficiency, safety and fuel savings and decreased environmental
impact, will only be realized when ADS-B-based systems also are
used for air-to-air applications. With these applications,
flight crews ultimately will have the same situational
awareness as controllers and be able to accomplish new tasks
that result in the needed benefits. In order for the NAS to
benefit from ADS-B and also to enhance safety and prevent
runway incursions, the agency needs to rapidly approve and
implement aircraft based ADS-B air-to-air applications. The
Committee is requiring FAA to report its progress in this
regard and to accelerate its ADS-B rulemaking.
TITLE IV--AIRLINE SERVICE AND SMALL COMMUNITY SERVICE IMPROVEMENTS
Title IV focuses on improving airline service and small
community access to air service. The airline service provisions
would require each airline to develop contingency plans for
situations in which the departure of a flight is substantially
delayed while passengers are confined to an aircraft. The
provisions would require a plan outlining how the airline will
ensure the passengers are provided adequate food, potable
water, and restroom facilities, as well as timely and accurate
information regarding the status of the flight in the event of
a significant delay. This plan would have to be filed with the
Department of Transportation (DOT), which would be required to
make the information publicly available. In the absence of such
a plan, the air carrier must permit passengers to deplane after
three hours have elapsed, unless the pilot believes the flight
will depart within 30 minutes after the three hour delay, or if
deplaning raises significant safety or security concerns. These
service provisions also would mandate improved disclosure of
flight information to passengers when purchasing tickets.
Airlines would be required to post the on-time performance of
chronically delayed, cancelled, or diverted flights on their
website, and to update that information on a monthly basis. The
provisions would require chronically delayed or cancelled
flights to be identified by the airline when a customer is
booking a ticket on a website, prior to purchase.
Most of the remaining provisions in the title propose
improvements to the Essential Air Service (EAS) and Small
Community Air Service Development Program (SCASDP). Authorized
funding for EAS would be increased to at least $133 million, at
least a $6 million increase from the current authorized amount.
Other EAS provisions included would: (a) permit the DOT to
incorporate financial incentives into contracts with EAS
carriers to encourage better service; (b) authorize longer-term
EAS contracts if it is determined to be in the public interest;
(c) authorize the development of a program to create incentives
for large carriers to code-share on service to small
communities; and (d) require large airlines to code-share on
EAS flights in up to 10 communities.
Title IV also would provide for an additional 12 slots at
Washington National Airport for flights beyond the 1,250 mile
Perimeter Rule limit and an additional eight slots at the
airport for flights within the perimeter. Other provisions in
this title would authorize AIP funding for converting an EAS
airport into a GA airport if the EAS community exits the
program; increase funding for contract towers that benefit
small communities; and modify existing requirements governing
disputes between EAS communities and their air service
providers.
TITLE V--AVIATION SAFETY
Title V proposes a number of measures to improve aviation
safety. The FAA would be required to finalize a rule on fuel
tank flammability for commercial air carriers by December 31,
2007, and develop a plan to provide runway incursion
information to pilots in the cockpit by December 31, 2008. Both
of these measures were among the National Transportation Safety
Board's (NTSB) aviation safety priorities. Two flight crew
fatigue initiatives are instituted. One is a study of pilot
fatigue to be conducted by the National Academy of Sciences
that would consider the latest research on fatigue, circadian
rhythms and international standards. A second provision would
authorize the FAA to implement the findings of a flight
attendant fatigue study. Through these provisions the agency is
encouraged to collaborate directly with others currently
engaged in fatigue mitigation to assist in the production of
any studies or recommendations on fatigue. This title also
would ensure the FAA could continue to access criminal history
databases to perform critical safety and security functions.
Several other provisions are included in this title to improve
emergency medical service helicopter operations. Remaining
sections include provisions that would: (a) permit access to
abandoned aircraft type certificates and supplemental type
certificates to improve FAA safety reviews; (b) clarify FAA's
work with the Occupational Safety and Health Administration
(OSHA) to ensure workplace safety; and (c) accelerate FAA's
development of required navigation performance approach
procedures.
The Committee is concerned about runway incursions as a
significant risk to aviation safety. While the FAA has made
progress in airport markings, training, and the deployment of
ground systems, these solutions are insufficient to prevent all
runway incursions. Over the past four years the incursion rate
in the U.S. has remained relatively constant. In an effort to
reduce runway incursions, the Committee recommends that the FAA
place an emphasis on providing strategic situational awareness
information to pilots, including aircraft position relative to
runways and other aircraft; and instantaneous alerting to
pilots in the event of a potential incursion.
TITLE VI--AVIATION RESEARCH
This title proposes the following initiatives: (a) the
Airport Cooperative Research Program (ACRP), which conducts
environmental and other research, would be authorized
permanently; (b) establishment of a center of excellence to
study the development of jet fuel from clean coal technology;
(c) establishment of a consortium to study the reduction of
civilian aircraft noise, emissions, and energy consumption; (d)
creation of the Advisory Committee on the Future of Aeronautics
to examine the best governmental and organizational structures
for civil aeronautics research and development (R&D); (e)
requiring the FAA to conduct research on airfield pavement,
wake turbulence, volcanic ash, and weather; (f) development and
examination of methods to incorporate unmanned aerial systems
into the NAS; and (g) reauthorization of a center of excellence
in applied research and training in the use of advanced
material in transport aircraft.
TITLE VII--MISCELLANEOUS
This title includes a variety of provisions related to the
aviation industry and personnel. The most significant provision
would extend the age limit for commercial airline pilots from
age 60 to 65. The provision would permit those pilots that turn
60 after passage of the bill to continue operating commercial
aircraft until the age of 65 if they are part of a flight crew
that includes another pilot under the age of 60. The new
provision would become effective 30 days from the date of
enactment and mandates a GAO review of the effect, if any, of
this transition on safety.
Title VII also includes the following provisions: (a) an
extension of the war risk insurance program; (b) a human
intervention management study for flight crews; (c) staffing
and training provisions for the airport concessions
disadvantaged business enterprise initiative; (d) a requirement
for FAA to update its calculation of overflight fees; (e) a
requirement for GAO to study technical training for FAA
technical specialists; (f) a phase-out of stage 1 and stage 2
aircraft; and (g) other miscellaneous program extensions and
technical corrections.
Legislative History
Senators Rockefeller and Lott, along with Chairman Inouye
and Vice Chairman Stevens, introduced S. 1300, the Aviation
Investment and Modernization Act of 2007, on May 3, 2007. The
Committee also held a series of hearings on reauthorizing the
FAA in the 109th Congress in preparation for the bill. These
hearings were followed by several hearings in the 110th
Congress that focused on the creation of an FAA Reauthorization
package. On February 15, 2007, a hearing was held on ``The
Administration's Proposal to Reauthorize the FAA--Part I,'' at
which FAA Administrator Marion Blakey testified. On March 8,
2007, a hearing was held on ``The Administration's Proposal to
Reauthorize the FAA--Part II,'' at which industry stakeholders
testified. On March 22, 2007, a hearing was held on
``Modernization of the FAA's Air Traffic Control System,'' at
which the Administration and stakeholders testified. On April
11, 2007, a hearing was held on ``Airline Service
Improvements'' at which the Administration, consumer and
passenger groups, and airline representatives testified.
On May 16, 2007, the Committee met in Executive Session
during which S. 1300 was considered. A managers' amendment that
made technical and perfecting changes to the provisions of S.
1300 was offered and approved by voice vote. Technical fixes
and modifications included in the managers' amendment included
provisions that would: (a) modify an existing exemption for
intrastate flights in non-contiguous States from the $25 per
flight modernization surcharge to include those flights that
originate or terminate in airspace that is not controlled by a
TRACON or a Combined Center/Radar Approach Control facility;
(b) exempt agricultural and training flights from the $25 per
flight modernization surcharge; (c) change the AIP Federal
match from 90 percent to 95 percent in the provision for
airports transitioning from being a small hub to a medium hub;
(d) modify the definition of airport development eligible for
AIP funding to include construction of concrete pads for fuel
trucks to park on while fueling an aircraft at non-primary
airports; and (e) modify the selection of arbitrators for
addressing FAA collective bargaining impasses.
The managers' amendment also included a number of
provisions that the managers agreed would improve upon several
titles in the bill, including provisions that would: (a) set a
minimum discretionary AIP funding level at $520 million
annually; (b) modify the calculation of apportionment funds for
airports whose commercial service has been interrupted; (c) add
an environmental research program to fund demonstration
projects at airports to test the practical application of
experimental technologies; (d) require FAA to issue a report
and rulemaking on the adoption of ADS-B, a key NextGen
technology for which language was inadvertently excluded from
S. 1300; (e) require FAA to establish a plan and a coordinating
body to examine and make recommendations to apply appropriate
OSHA requirements to the aircraft cabin; (f) specify authorized
amounts for the ACRP; (g) continue an existing program for
pavement research; (h) require FAA to conduct safety research
on wake vortexes, volcanic ash, and weather; (i) ensure FAA
employees would receive, at minimum, the benefits established
by the Family and Medical Leave Act; and (j) require FAA to
have the National Academy of Sciences conduct a study of the
agency's air traffic controller staffing requirements.
In addition to the managers' amendment, seven amendments
were offered during the Executive Session. Senator Nelson
offered an amendment to strike the $25 modernization fee, which
was defeated in a roll-call vote (11 Yeas and 12 Nays). Senator
Cantwell offered an amendment to increase slots at Ronald
Reagan Washington National airport, which was approved in a
roll-call vote (12 Yeas and 11 Nays). Senator Ensign offered a
second degree amendment co-sponsored by Senator McCain to
Senator Cantwell's slot amendment that would permit air
carriers with existing slots at the airport to use an
increasing percentage of those slots for extra-perimeter
flights, which was defeated by voice vote. Senator Pryor
offered an amendment to prevent any consolidation at the
Memphis TRACON facility until a NextGen facilities needs
assessment is completed, an amendment to require applicants for
providing EAS to submit marketing plans with their
applications, and a second degree amendment to make a technical
correction to the EAS amendment. All of Senator Pryor's
amendments were approved by voice vote. Finally, Senator
McCaskill offered an amendment regarding airline labor
integration issues, which was approved by voice vote.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 17, 2007.
Hon. Daniel K. Inouye,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1300, the Aviation
Investment and Modernization 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.
S. 1300--Aviation Investment and Modernization Act of 2007
Summary: S. 1300 would authorize appropriations, mainly
over the 2008-2011 period, for activities of the Federal
Aviation Administration (FAA). CBO estimates that implementing
the bill would cost about $49 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 $457 million over the 2008-2012 period, but
increase it by nearly $1.8 billion over the 2008-2017 period.
Finally, CBO and the Joint Committee on Taxation (JCT) estimate
that enacting S. 1300 would lead to a net increase in revenues
of $60 million over the 2008-2012 period and $109 million over
the 2008-2017 period.
Pursuant to section 203 of S. Con. Res. 21, the Concurrent
Resolution on the Budget for Fiscal Year 2008, CBO estimates
that changes in direct spending and revenues from enacting S.
1300 would not cause an increase in the on-budget deficit
greater than $5 billion in any of the 10-year periods between
2018 and 2057.
S. 1300 contains intergovernmental mandates as defined in
the Unfunded Mandates Reform Act (UMRA), but CBO estimates that
the costs to state, local, and tribal governments of complying
with these mandates would be small and would not exceed the
threshold established in UMRA ($66 million in 2007, adjusted
annually for inflation). Other provisions of the bill would
benefit states and public institutions of higher education by
authorizing grants for airport improvements and aviation
research. Any costs those entities might incur would result
from complying with conditions of federal assistance.
S. 1300 would impose several private-sector mandates as
defined in UMRA. The bill would impose new requirements on
commercial air carriers, operators of certain general aviation
aircraft, operators of certain aircraft weighing 75,000 pounds
or less and operators of emergency medical service helicopters.
Based on information from the FAA and industry sources, CBO
estimates that the aggregate direct cost of complying with
those mandates would exceed the annual threshold established by
UMRA for private-sector mandates ($131 million in 2007,
adjusted annually for inflation) in each of the first five
years the mandates are in effect.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1300 is shown in Table 1. The costs of
this legislation fall within budget functions 400
(transportation) and 600 (income security).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 1300
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars
-----------------------------------------------------------
2007 2008 2009 2010 2011 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 2,572 2,923 3,079 3,317 0
Estimated Outlays........................... 0 1,492 2,338 2,902 3,184 1,350
Offsetting Collections from the Modernization
Surcharge:
Estimated Authorization Level............... 0 0 -410 -420 -430 0
Estimated Outlays........................... 0 0 -410 -420 -430 0
Airport Improvement Program Outlays: \3\
Authorization Level......................... 0 0 0 0 0 0
Estimated Outlays........................... 0 62 134 224 320 402
Research, Engineering, and Development:
Authorization Level......................... 0 140 191 191 194 0
Estimated Outlays........................... 0 77 153 185 193 87
Other Provisions:
Estimated Authorization Level............... 0 24 46 45 95 10
Estimated Outlays........................... 0 17 43 48 85 27
Total Changes:
Estimated Authorization Level........... 0 11,462 11,728 12,200 12,766 10
Estimated Outlays....................... 0 9,414 11,208 12,208 12,911 2,921
Spending Under S. 1300:
Estimated Authorization Level \1\............... 11,064 11,624 11,855 12,327 12,843 87
Estimated Outlays............................... 15,059 14,575 13,286 13,109 13,212 3,033
DIRECT SPENDING
Baseline Spending Under Current Law:
Estimated Budget Authority \3\.................. 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 \3\................. 0 115 109 243 384 494
Estimated Outlays.............................. 0 -69 -123 -76 -40 -149
Spending Under S. 1300:
Estimated Budget Authority \3\.................. 3,725 3,840 3,828 3,968 4,109 4,219
Estimated Outlays \2\........................... 40 -19 -73 -26 10 -99
CHANGES IN REVENUES
Estimated Revenues.................................. 0 * 17 15 15 13
----------------------------------------------------------------------------------------------------------------
Note: * = between -$500,000 and $500,000.
FAA = Federal Aviation Administration.
\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 through 2012 levels 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 airservice; 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.
Basis of estimate: Implementing S. 1300 would increase
discretionary spending. Enacting the bill also would increase
net direct spending and revenues over the next 10 years. Outlay
estimates are based on historical spending patterns for
affected programs and on information provided by the Department
of Transportation (DOT) and FAA staff. For this estimate, CBO
assumes S. 1300 will be enacted near the end of fiscal year
2007.
Spending subject to appropriation
CBO estimates that fully funding aviation programs under S.
1300 would cost about $9.4 billion in 2008 and $49 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. S. 1300 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. S. 1300 would
authorize appropriations totaling $2.6 billion in 2008 and
$11.9 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
resulting outlays would total $1.5 billion in 2008 and $11.3
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, S. 1300 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 S. 1300 and triggered by
annual appropriation acts would be considered changes in direct
spending, and are discussed later in this estimate (see
``Direct Spending'').
Offsetting Collections from the Modernization Surcharge. S.
1300 would establish a new fee--a surcharge of $25 on certain
flights--to be used for air traffic control modernization. The
legislation would specify two alternative budgetary treatments
for amounts collected from the proposed surcharges, depending
on certain conditions. In general, the FAA's authority to
collect surcharges would be subject to appropriation of the
full amount authorized for FAA facilities and equipment.
Surcharges collected pursuant to appropriation acts would be
credited as discretionary offsetting collections (a credit
against discretionary spending), reducing net appropriations
for facilities and equipment. Under S. 1300, however, if the
FAA uses newly proposed borrowing authority (a form of direct
spending) to finance investments to modernize the air traffic
control system, the bill would authorize the agency to collect
surcharges, without appropriation action, to repay such
borrowing. Under the bill, surcharges used to repay borrowing
would be credited as offsetting receipts (a credit against
direct spending).
CBO expects the FAA would begin collecting surcharges in
fiscal year 2009. Based on information from the FAA about
anticipated numbers of flights that would generate income from
the proposed surcharge, CBO estimates the proposed surcharge
would generate $410 million in 2009, increasing to $490 million
by 2017. Based on the likely timing and magnitude of federal
borrowing related to air traffic control modernization, CBO
estimates the agency would start to borrow funds in 2012. Until
that time, CBO estimates that surcharges would generate
discretionary offsetting collections totaling nearly $1.3
billion over the 2009-2011 period, assuming appropriation of
amounts authorized for facilities and equipment. Starting in
2012, we expect surcharges would be used to repay borrowing
authority and credited as offsetting receipts, as described
later in this estimate (see ``Direct Spending'').
Airport Improvement Program Outlays. S. 1300 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 contract authority
are controlled by limitations on obligations set in annual
appropriation acts and are therefore considered discretionary.
CBO estimates that enacting S. 1300 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 S. 1300 and $425 million annually thereafter.
(See ``Direct Spending'' for a discussion of the budgetary
treatment of AIP 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 AIP
funds. In total, assuming that obligation limitations of AIP
spending, as set forth in annual appropriation acts, are equal
to the levels of contract authority projected under S. 1300,
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
S. 1300.
Research, Engineering, and Development. S. 1300 would
authorize appropriations totaling $140 million-in 2008 and $716
million over the 2008-2011 period for research and activities
aimed at improving the safety and capacity of U.S. airspace.
(In comparison, the Congress provided $130 million for such
activities in 2007.) CBO estimates fully funding those programs
under S. 1300 would cost $77 million in 2008 and $695 million
over the 2008-2012 period, with additional spending occurring
in later years.
Other Provisions. CBO estimates that implementing other
provisions of S. 1300 would require appropriations totaling
$220 million over the 2008-2012 period. (In comparison, CBO
estimates the Congress provided nearly $100 million for related
programs in 2007.) That amount includes:
$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, through 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);
$10 million specifically authorized for the
Department of the Interior to develop plans related to
air tours of national parks;
$5 million specifically authorized for applied
research and training on the use of advanced materials
in certain aircraft; and,
$20 million estimated to be necessary for
various FAA studies, reports, and activities.
Assuming appropriation of amounts specified and estimated
to be necessary, CBO estimates fully funding these activities
would cost $17 million in 2008 and $220 million over the 2008-
2012 period.
TABLE 2.--EFFECTS ON DIRECT SPENDING AND REVENUES UNDER S. 1300
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------------
2008-
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008-2012 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Air Traffic Control Modernization:
Estimated Budget Authority.......... 0 0 0 0 500 750 750 1,000 1,000 1,000 500 5,000
Estimated Outlays................... 0 0 0 0 290 560 700 890 960 1,000 290 4,400
Modernization Surcharge:................ 0 0 0 0 -440 -450 -460 -470 -480 -490 -440 -2,790
Estimated Budget Authority.......... 0 0 0 0 -440 -450 -460 -470 -480 -490 -440 -2,790
AIP Contract Authority \1\:
Budget Authority.................... 125 225 325 425 425 425 425 425 425 425 1,525 3,650
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
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
Third-Party Financing of Investments in
Modernization:
Estimated Budget Authority.......... 60 0 0 0 0 0 0 0 0 0 60 60
Estimated Outlays................... 10 20 20 10 0 0 0 0 0 0 60 60
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...... 115 103 243 384 494 775 795 1,046 1,056 1,056 1,339 6,067
Estimated Outlays............... -69 -123 -76 -40 -149 157 321 512 592 632 -457 1,757
CHANGES IN REVENUES
Estimated Revenues...................... 0 17 15 15 13 13 11 10 8 7 60 109
--------------------------------------------------------------------------------------------------------------------------------------------------------
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.
Direct Spending
CBO estimates enacting S. 1300 would reduce direct spending
by $457 million over the 2008-2012 period but increase it by
nearly $1.8 billion over the 2008-2017 period. Those changes,
presented in Table 2, result primarily from provisions that
would:
Provide new budget authority for the FAA to
modernize the nation's air traffic control system;
Establish a surcharge on flight operations;
Provide additional contract authority for the
AIP;
Increase direct spending of overflight fees;
Increase the mandatory retirement age for
pilots;
Expand the use of third-party financing of
investments in modernization; and
Extend the FAA's authority to sell certain
insurance.
Modernizing the Air Traffic Control System. S. 1300 would
authorize the FAA to borrow up to $5 billion over the 2009-2025
period to finance capital investments related to modernizing
the nation's air traffic control system. Such borrowing
authority would constitute new direct spending authority and
spending would be recorded in the budget as the agency borrows
funds. To repay borrowed funds, the bill also would establish a
surcharge on certain flights, as described in the following
section. Based on information from the FAA and the JPDO about
the anticipated timing and magnitude of federal spending
related to air traffic control modernization, CBO estimates
that enacting this provision would increase direct spending by
$4.4 billion over the 2012-2017 period, with additional
significant spending continuing through at least 2025.
The bill does not specify whether the $5 billion limit
would apply to cumulative borrowing--essentially capping direct
spending at $5 billion--or if the agency would be authorized to
borrow new funds as it repays obligations--effectively
operating as a revolving line of credit. Although current
estimates of total costs to modernize the air traffic control
system are uncertain, CBO expects they will far exceed the
legislation's $5 billion borrowing limit--perhaps reaching $22
billion according to recent testimony by the FAA. For this
estimate, CBO assumes that it would continue to borrow
throughout the 2009-2025 period, provided that the agency
continues to repay borrowed funds over that period, so that
outstanding debt would not exceed $5 billion at any time. CBO
estimates that borrowing over the 2009-2025 period would total
between $8 billion and $11 billion, depending on the magnitude
of surcharges available to repay borrowing.
Finally, S. 1300 does not specify whether the FAA would
borrow funds from the Department of the Treasury or by selling
obligations directly to the public. The Department of the
Treasury conducts the federal government's conventional
borrowing by issuing bonds and other types of debt. Treasury
securities are the ``gold standard'' because they are
considered virtually free from the risk of default and are
highly liquid. Other means of borrowing funds, including
allowing an agency to sell obligations directly to the public,
can be expected to cost the government more, as investors would
likely demand a premium over Treasury bonds for purchasing
specifically issued debt. For this estimate, CBO assumes the
FAA would borrow through the Treasury to fund investments in
modernization.
Offsetting Receipts from the Modernization Surcharge. As
previously discussed, S. 1300 would establish a new fee--a $25
surcharge on certain flights--to provide a source of funds for
activities related to modernizing the nation's air traffic
control system. In years when the FAA borrows funds for
investments related to modernization, such surcharges would be
credited as offsetting receipts (a credit against direct
spending) and used to repay such borrowing. (In years when
surcharges are not needed to repay agency borrowing, they would
be subject to appropriation and credited as discretionary
offsetting collections; see ``Spending Subject to
Appropriation.'')
Based on information from the FAA on the likely timing of
agency borrowing and the number of flights that would generate
income from the proposed surcharge, CBO estimates that
resulting offsetting receipts would total about $2.8 billion
over the 2012-2017 period (and that surcharges collected before
2012 would be recorded as offsetting collections).
Airport Improvement Program Contract Authority. S. 1300
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, and thus, outlays would be 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 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 AIP contract authority over
the 2008-2017 period will remain at the 2007 level of nearly
$3.7 billion.
Increases to Contract Authority. Under S. 1300, 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
contract authority under S. 1300 would exceed levels of
contract authority assumed in the current budget resolution
baseline by $1.1 billion over the four-year period specifically
covered by the bill and $3.7 billion over the 2008-2017 period.
Adjustments to AIP 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 AIP 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, S. 1300--in conjunction with that provision of current
law--would authorize adjustments to AIP contract authority for
those years as well. 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 S. 1300 could result in additional
AIP contract authority of as much as $11.9 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 S. 1300.
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
FAA for costs to provide navigational support to flights that
neither take off nor land in the United States. As discussed
below, S. 1300 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 particular
activities related to the Essential Air Service program, which
subsidizes the cost of providing air service to certain rural
communities.
Pilots' Mandatory Retirement Age. Section 706 of the bill
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 which the agency
indicated would likely take 18 months to 24 months.
S. 1300 would raise the mandatory retirement age for pilots
to age 65, effective not later than 30 days after enactment.
For purposes of this estimate, CBO assumes that this 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
would turn 60 years old in fiscal year 2008, and would have the
opportunity to continue flying until age 65 if S. 1300 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
of the retirement age change would likely be only a small
increase and result from the fact that the pilots affected
would probably be significantly healthier than the general
population of pension recipients.
Third-Party Financing of Investments in Modernization. CBO
estimates the pilot program authorized by S. 1300 to allow
state and local governments, including airports, to use FAA
contracts to finance investments related to Automatic Dependent
Surveillance-Broadcast (ADS-B) technology would increase direct
spending by $10 million in 2008 and $60 million over the 2008-
2017 period.
ADS-B Technology. Under current law, one of the major air
traffic control modernization programs underway involves the
use of ADS-B technology. With ADS-B, ground stations and
aircraft transponders will send and receive information, via
satellite, to provide more accurate information on the location
of aircraft, which will enable air traffic controllers and
pilots to use airspace more safely and efficiently. Using
existing authorities, the FAA currently plans to broadly
implement ADS-B technology for use of U.S. airspace. The agency
plans to award a contract this summer to allow a vendor to
install, operate, and maintain ADS-B ground stations, and is
pursuing a rulemaking to require air carriers to install
necessary avionics equipment. Under such a contract, which
could cover up to 18 years, the vendor will finance the
acquisition, installation, operation, and maintenance of ADS-B
ground stations nationwide in exchange for annual payments from
the FAA.
Budgetary Treatment of ADS-B Contracts. Using long-term
contracts to involve nonfederal parties in financing the cost
of capital spending for ADS-B ground stations--particularly to
acquire and install such equipment--constitutes direct spending
when the legal obligation of the federal government in such
contracts is not covered by a full up-front discretionary
appropriation. Upon entering into such contracts, the
government becomes obligated to make payments in the future.
Thus, consistent with government-wide accounting principles,
the budget should record those commitments as new obligations
at the time the government enters into such contracts.
Increased Spending for ADS-B Under S. 1300. This cost
estimate does not include costs related to the ADS-B contract
the agency is pursuing under current law; however, it does
reflect increased direct spending authorized by the bill for
expanding the use of third-party financing of capital spending
for ADS-B ground stations. Specifically, S. 1300 would
establish a pilot program to allow up to 10 state and local
governments, including airports, to use FAA contracts to
install, operate, and maintain ADS-B ground stations. Based on
information from the FAA on the anticipated cost to acquire and
install such systems, CBO estimates that increased spending
would total $60 million over the 2008-2011 period.
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. S. 1300 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.
Initial savings under this provision of S. 1300 result
because the FAA would collect premiums in full when coverage is
sold, while payments for expected losses would 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 insured damage terrorists might
cause in any specific year. Instead, our estimate of the cost
of insurance coverage under S. 1300 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 S. 1300 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.
Revenues
CBO and JCT estimate that enacting S. 1300 would increase
net revenues by $60 million over the 2008-2012 period and $109
million over the 2008-2017 period. Those changes stem from
provisions related to overflight fees and passenger facility
fees.
Overflight Fees. S. 1300 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. S. 1300 would direct the agency to update the amounts
charged, through an expedited rulemaking, to fully recover its
costs starting in fiscal year 2009. Based on information from
the agency, CBO estimates that the agency's costs to provide
support for overflights currently exceeds revenues from fees by
about $18 million annually. CBO estimates the resulting
increase in revenues would total $74 million over the 2009-2012
period and $177 million over the 2009-2017 period. (As
discussed earlier, under the bill, those increased revenues
would result in corresponding increases in direct spending for
certain activities related to the Essential Air Service
program.)
Passenger Facility Fees. S. 1300 would direct the Secretary
of Transportation to establish a pilot program to allow
participating authorities to increase passenger facility fees
under certain circumstances. JCT expects that the proposed
program would increase passenger facility 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
$14 million over the 2008-2012 period and $69 million over the
2008-2017 period.
Estimated impact on state, local, and tribal governments;
S. 1300 contains intergovernmental mandates as defined in UMRA.
Specifically, 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. These
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 police
officers, CBO estimates that the additional costs to state,
local, and tribal governments of complying with these mandates
would be small and would not exceed the threshold established
in UMRA ($66 million in 2007, adjusted annually for inflation).
Other provisions of the bill would benefit public
institutions of higher education by authorizing grants for
aviation research, and would benefit states by providing grants
for airport planning, noise abatement, environmental reviews
and other airport-related projects. Any costs those entities
might incur would result from complying with conditions of
federal assistance.
Estimated impact on the private sector: S. 1300 contains
several private-sector mandates as defined in UMRA. Those
mandates include but are not limited to:
A new surcharge on flights in airspace
controlled by the FAA,
A prohibition on operating certain aircraft
not in compliance with low-noise criteria,
Safety requirements for helicopters used in
emergency medical service, and
Requirements on air carriers related to
airline service and cabin crews.
Based on information from the FAA and industry sources, CBO
estimates that the aggregate direct cost of complying with
those mandates would exceed the annual threshold established in
UMRA for private-sector mandates ($131 million in 2007,
adjusted annually for inflation) in each of the first five
years the mandates are in effect.
Flight surcharge
Section 106 would impose a $25 surcharge per flight on
commercial airline, general aviation jet, and turboprop flights
which use airspace controlled by the FAA. According to the FAA,
the surcharge would apply to about 16.5 million flights. Based
on those data, the cost for private-sector entities to comply
with the mandate would be at least $400 million per year and
would exceed UMRA's annual threshold each year.
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 noisiest. Section 711 would
prohibit, with certain exemptions, operation of aircraft
weighing 75,000 pounds or less in the United States that do not
comply with stage 3 noise levels. The prohibition would take
affect five years after the date of enactment. According to
industry sources, compliance would require engine modifications
on existing aircraft when possible, or replacement of aircraft
that cannot be modified to meet the noise requirement. Those
sources estimate the cost of compliance could range from a low
of $300 million to more than $1 billion depending on how the
aircraft are made to comply.
Helicopter emergency medical service safety requirements
Section 508 would require operators of helicopters for
emergency medical service to comply with operating procedures
whenever there is a medical crew on board. It also would
require all helicopters acquired after the bill's enactment to
have an operational terrain awareness and warning system that
meets certain FAA specifications. The bill would require flight
operators to use a standardized checklist of risk evaluation
factors and standardized dispatch procedures both to be
developed by FAA rulemakings. In addition, the bill would
require flight data and cockpit voice recorders on all
helicopters used in such service. Due to a lack of information
on the specific standards to be established by the FAA, CBO
cannot estimate the incremental costs that would result from
compliance with those standards.
Air carriers: airline service and cabin crew requirements
The bill would impose several new requirements on air
carriers related to airline service. Section 401 would require
air carriers to develop contingency plans to handle situations
in which the departure of a flight is substantially delayed
with passengers onboard. The plan would be required to outline
how the air carrier would ensure that passengers are provided
adequate food, potable water, and restroom facilities as well
as timely and accurate information regarding the status of the
flight. Section 402 would require each air carrier to publish,
and update monthly, on its Web site, the on-time performance of
chronically delayed, cancelled, or diverted flights. In
addition, air carriers would have to disclose the on-time
performance for a chronically delayed flight and cancellation
rates when customers book flights on their Web sites. The bill
also would require air carriers to post a statement on such
sites detailing a customer service policy and consumer rights
related to air carriers under federal and state law. Based on
information from industry sources, CBO expects that the direct
cost to comply with the mandates would be small relative to
UMRA's annual threshold.
S. 1300 also would impose requirements on air carriers
related to the English language skills of their cabin crews.
Section 509 would prohibit an air carrier from using any person
as a flight attendant on flights taking off or landing in the
United States unless the person has the ability to read, speak,
and write English. Based on information from industry sources,
CBO expects that the direct cost to comply with this mandate
would be minimal relative to the annual threshold.
Estimate prepared by: Federal Costs: FAA spending--Megan
Carroll; Retirement Benefits--Paul Cullinan; 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, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
The reported bill would reauthorize existing FAA
activities, thus the number of persons covered should be
consistent with the current levels of individuals impacted
under existing FAA activities.
ECONOMIC IMPACT
S. 1300 is expected to have a positive impact on the U.S.
economy. The air transportation system, which is a key
component of the nation's economy, is experiencing increased
congestion and delay. Provisions in this legislation aim to
ensure the air transportation system is modernized in a timely,
efficient, and effective manner to resolve congestion and
delay, and meet the growing demand on the aviation system.
PRIVACY
The reported bill is not expected to have any impact on the
privacy rights of individuals.
PAPERWORK
It is not anticipated that there will be a major increase
in paperwork burdens resulting from the enactment of S. 1300.
Section-by-Section Analysis
Sec. 1. Short title; table of contents
This section provides that the Act may be cited as the
``Aviation Investment and Modernization Act of 2007'' and sets
forth the table of contents for the bill.
Sec. 2. Amendments to title 49, United States Code
This section stipulates that, except as otherwise expressly
provided, all amendments in this Act would be made to title 49,
United States Code.
Sec. 3. Effective date
This section would require the provisions of this act to take
effect on the date of enactment, unless expressly provided
otherwise.
TITLE I--AUTHORIZATIONS AND FINANCING
Sec. 101. Operations
This section would authorize the FAA operations account at a
level of $8.7 billion for FY 2008; $9.0 billion for FY 2009;
$9.3 billion for FY 2010; and $9.6 billion for FY 2011.
Sec. 102. Air navigation facilities and equipment
This section would authorize the FAA's air navigation F&E
account, which funds the modernization and maintenance of the
ATC system. The F&E account would be authorized at $2.6 billion
for FY 2008; $2.9 billion for FY 2009, of which $412 million
would be derived from the newly-created modernization surcharge
imposed under section 48115; $3.1 billion for FY 2010, of which
$423 million would be derived from the modernization surcharge;
and $3.3 billion for FY 2011, of which $436 million would be
derived from the modernization surcharge.
Sec. 103. Research and development
This section would authorize the FAA's R,E,&D account at a
level of $140 million for FY 2008; $191 million for FY 2009;
$191 million for FY 2010; and $194 million for FY 2011.
Sec. 104. Airport planning and development and noise compatibility
planning and programs
This section would authorize the FAA's AIP account at a level
of $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. 105. Other aviation programs
This section would extend the budgetary treatment for the
FAA's accounts through 2011.
Sec. 106. Air Traffic Modernization Fund
This section would establish the Modernization Fund and
collection procedures. The purpose of the Modernization Fund
would be to help pay for the costs of modernizing the ATC
system and implementing NextGen. The Modernization Fund would
be financed by a $25 per flight surcharge, levied on commercial
airline and GA jet and turboprop flights in controlled
airspace. Military aircraft, public aircraft, air ambulances,
piston engine aircraft, turboprop and turboshaft aircraft
operating outside of controlled airspace, certain intrastate
flights, and agricultural flights would be exempt from the
surcharge. The FAA Administrator also would be authorized to
exempt training flights from the surcharge. The revenues
generated by the surcharge would be credited as offsetting
collections to the FAA's F&E account.
This section also would authorize the Secretary of
Transportation to borrow up to $5 billion between 2009 and 2025
to finance modernization investments in facilities and
equipment of the air transportation system, with the loan to be
repaid through revenues derived from the surcharge.
Sec. 107. Funding for administrative expenses for airport programs
This section would authorize administrative expenses for the
FAA's airports program at a level of $81 million for FY 2008;
$85 million for FY 2009; $89 million for FY 2010; and $93
million for FY 2011.
TITLE II--AIRPORT IMPROVEMENTS
Sec. 201. Reform of passenger facility charge authority
This section would streamline and simplify the administrative
requirements associated with the PFC, while retaining audit
controls and FAA oversight of projects and expenditures. This
section would impose additional requirements on any airport
authority applying to increase its PFC or to impose a PFC to
finance an inter-modal ground facility.
Sec. 202. Passenger facility charge pilot program
This section would require the Secretary to establish and
conduct a pilot program in which up to six airports may impose
a PFC without regard to dollar amount limitations if the
participating airports collect the charge from a passenger at
the airport, via the Internet, or in any other reasonable
manner. A participating airport would be prohibited from
collecting the charge through an air carrier.
Sec. 203. Amendments to grant assurances
This section would make two improvements to required grant
assurances (section 47107 of Title 49, United State Code) for
AIP projects. First, a limited exception to a current
requirement would permit an airport owner to use AIP
entitlement funds to move or replace a facility when the need
to relocate or replace it was beyond the owner's control, such
as new design standards that render the facility a safety
hazard. Second, the provision addresses the disposition of
proceeds from the sale of land that an airport acquired for a
noise compatibility purpose but which the airport no longer
needs for that purpose.
Existing law requires that proceeds from the sale, in an
amount that is proportional to the Federal government's share
of the land acquisition cost, be returned to the Trust Fund.
This section would allow the Secretary to permit the
government's share of these proceeds to be used at the airport
for other purposes, giving priority, in descending order, to
the following: (a) reinvestment in another noise compatibility
project at the airport; (b) reinvestment in another
environmentally related project at the airport; (c)
reinvestment in another otherwise eligible AIP project at the
airport; (d) transfer to another public airport for a noise
compatibility project; and (e) payment to the Trust Fund.
Sec. 204. Government share of project costs
Currently the government share of AIP grants to large and
medium hub airports is generally 75 percent; for small hubs the
government share is 90 percent. This section would establish a
special rule to allow small hub airports that have increased
operations, and therefore are being reclassified as medium hub
airports, to retain their eligibility for two years for up to a
90 percent government share of project costs, in an effort to
ease such a facility's transition to the new status.
Sec. 205. Amendments to allowable costs
A new subsection (d) would be added to 47110 of Title 49,
United State Code, relating to the relocation of airport-owned
facilities, making such relocation an allowable cost if the
sponsor must move a facility because of design standards beyond
the sponsor's control. This is similar to a change made to the
grant assurances provision in section 203 of the bill.
Sec. 206. Sale of private airport to public sponsor
This section would amend section 47133 of Title 49, United
States Code, (restrictions on use of revenues) to facilitate
the sale of a private airport which in the past has 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 are
attached to such a characterization. Removal of such treatment
would facilitate these sales without undermining revenue
diversion protections. This amendment would be applicable to
grant assistance provided to private airports since October 1,
1996.
Sec. 207. Pilot program for airport takeover of air navigation
facilities
This section would authorize a pilot program under which the
FAA may transfer terminal area air navigation equipment, such
as instrument landing systems and approach lighting systems to
airports. Up to 10 airports would be eligible to participate.
The FAA would be permitted to transfer the ownership of the
facilities, and where needed, the FAA's property interest in
the land on which the equipment is located, at no cost to the
airport. In turn, the airport would commit to operate and
maintain all of the covered equipment at the airport in
accordance with FAA standards, allow for periodic FAA
inspections, and replace the equipment when needed. The
provision also includes explicit authority for airports to add
to their airfield rate base any costs of owning and operating
the equipment.
Sec. 208. Government share of certain air project costs
This section would extend a provision included in Vision 100
that sets the Federal share for certain projects at small
airports at 95 percent.
Sec. 209. Miscellaneous amendments
This section would make a number of non-controversial
amendments to chapter 471 of Title 49, United State Code, to
update provisions, remove outdated or obsolete language, or
clarify provisions.
Subsection (a), Technical changes to the National Plan of
Integrated Airport Systems. This subsection would make
technical changes to section 47103 of Title 49, United State
Code, the National Plan of Integrated Airport Systems (NPIAS),
in order to remove obsolete language and update the provision
to conform to what the FAA is currently including in the NPIAS.
For example, the NPIAS now works with only categories of
airports rather than individual airports. Consequently, the
language in section 47103(a) that references ``each airport''
would be deleted in favor of a reference to the ``airport
system.'' Similarly, further amendments to 47103(a) would
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, for example, how an
airport connects to a transit system. Section 47103(b) would be
amended to delete two obsolete references: (a) the NPIAS does
not consider how tall structures reduce safety and capacity,
which is done separately under FAA Order 7460, which requires
coordination for any construction of structures over 200 feet
or within 20,000 feet of an airport; and (b) the NPIAS no
longer takes into account Short/Takeoff and Landing operations,
so the requirement is outdated. Finally, in subsection
47103(d), the language would be clarified to state that the
NPIAS, not just the status of the plan, must be published every
two years.
Subsection (b), Update veteran's preference definition. This
subsection would allow veterans of the current Afghanistan/Iraq
conflict to be eligible for veteran's employment preference on
AIP projects.
Subsection (c), Annual report. This subsection would modify
the requirements for the annual AIP program report to conform
to practice. The annual date of the AIP program report would be
moved from April 1 to June 1, and some content would be
changed.
Subsection (d), Sunset of program. Since the activities
described in section 47137 have been assumed by the Department
of Homeland Security (DHS), this provision of the bill would
sunset this authority at the end of FY 2008.
Subsection (e), Correction to emission credits provision.
This subsection would correct an inaccurate cross-reference in
section 47139 of Title 49, United State Code, enacted by Vision
100, under which an airport is able to ``bank'' credits when
the airport does air quality work that is not required but is
``surplus.''
Subsection (f), Correction to surplus property authority.
This amendment would remove restrictive language added by
Vision 100 that was intended to address concerns over disposal
of land due to particular military base closures occurring at
the time of enactment. Removal of the obsolete restriction will
aid FAA's effort to support the conversion of military airports
to civilian use.
Subsection (g), Airport capacity benchmark reports;
definition of joint use airport. This amendment would provide
for a reference to updated versions of the FAA's Airport
Capacity Benchmark reports, not just the original 2001 Report.
Also, for purposes of subchapter III of chapter 471 (aviation
development streamlining) of Title 49, United State Code, this
section would provide a definition of ``joint use airport,'' as
meaning a DOD airport that has both military and civil aircraft
operations.
Subsection (h), Cargo airports. This subsection would change
the cargo entitlement from 3.5 percent to 4.0 percent.
Subsection (i), Use of apportioned amounts. This subsection
would change the apportioned amount for noise compatibility
programs, noise mitigation projects, and other airport
developments.
Subsection (j), Use of apportioned amounts. This subsection
would make funds available for the project costs of
establishing a new crosswind runway.
Subsection (k), Use of previous fiscal year's apportionment.
This provision would permit the Secretary to apportion to a
sponsor in a fiscal year an amount equal to the amount
apportioned to that sponsor in the previous fiscal year, if the
airport (a) is served by a single carrier and documents a
significant disruption of air service, (b) is included in the
EAS program and passenger boarding falls below 9,700
enplanements, or (c) has more than 10,000 enplanements yet does
not meet the criteria for a primary airport, in which passenger
levels have exceeded 10,000 for the purpose of apportionments.
Subsection (l), Mobile refueler parking. Makes the
construction of parking pads for mobile refuelers used while
fueling an aircraft eligible for AIP funding at non-primary
airports.
Subsection (m), AIP minimum discretionary funding.
Establishes an AIP minimum discretionary funding level of
$520,000,000.
Subsection (n), AIP apportionment funding. Modifies how
apportionment funding is calculated for certain airports.
Subsection (o), AIP apportionment funding. Modifies the
determination of enplanements for the purposes of calculating
apportionment funds.
Sec. 210. State block grant program
This section would codify current practice that State
participants in the AIP State Block Grant program (SBGP) have
responsibility and authority to comply with applicable
environmental requirements for projects at non-commercial
service airports within the purview of the SBGP. The FAA
administers the SBGP by authorizing participating States, once
a year, to receive a block of funds for any eligible non-
primary airport project. Currently, eight States participate in
the program, Illinois, Michigan, Missouri, North Carolina,
Pennsylvania, Tennessee, Texas, and Wisconsin. This section
would also make a minor change to section 47128(a) of Title 49,
United State Code, by replacing the term ``regulations'' with
``guidance'' because the FAA has issued guidance in the form of
the Airport Improvement Program Handbook, 5100.38, to implement
AIP. This administrative change does not impact the SBGP or the
Secretary's ability to place requirements on the States under
section 47128 of Title 49, United States Code.
Sec. 211. Airport funding of special studies or reviews
This section would broaden authority, under section 47173 of
Title 49, United States Code, to include voluntary agreements
with airports that request FAA support in conducting special
environmental studies that have R&D aspects relevant to ongoing
environmental reviews. Vision 100 codified authority of the FAA
to enter into reimbursable agreements with airport sponsors to
fund additional FAA staff and contract support using airport
funds or AIP funds received by the airport to help streamline
environmental reviews for airport capacity projects. This
section would also include similar studies resulting from
approved Part 150 program noise mitigation measures or from
environmental mitigation commitments in an agency record of
decision or a finding of no significant impact. The provision
would not include projects where there is no FAA action or
involvement that would trigger the work.
Sec. 212. Grant eligibility for assessment of flight procedures
This section would encourage the implementation of
environmentally-beneficial aircraft flight procedures at
airports by making the environmental review of airport-proposed
procedures AIP eligible if they are approved by the FAA under
14 Code of Federal Regulations (CFR) part 150, Airport Noise
Compatibility Planning. Currently, the environmental review
under the National Environmental Policy Act (NEPA) of airport
development measures approved under part 150 is AIP-eligible,
but the NEPA review of flight procedures is not. NEPA reviews
of flight procedures are often resource-poor and are delayed as
a result. Operational procedures offer the most promise for
near-term environmental improvements while new technologies are
developed. The Potomac River approach used at Ronald Reagan
Washington National Airport is an example of how the use of air
traffic procedures to mitigate noise has proven highly
successful. There is a need to enhance funding mechanisms to
encourage and utilize operational procedures to a greater
extent. This section would also authorize the FAA to accept
funds, including AIP grant funds and PFC revenue, from an
airport sponsor to hire staff or obtain services in order to
provide timely environmental reviews for such flight
procedures. This is similar to authority the FAA has under
section 47173 of Title 49, United States Code, for
environmental activities related to AIP projects.
Sec. 213. Safety-critical airports
This section would make current or former military airports
eligible to be considered for a grant under 47118 of Title 49,
United States Code, if that airport is found to be critical to
the safety of trans-oceanic air traffic.
Sec. 214. Expanded passenger facility charge eligibility for noise
compatibility projects
Subject to certain restrictions, this section would expand
current PFC eligibility criteria to include noise mitigation
for a building or the replacement of a relocatable building
with a permanent building, to mitigate noise impacts in
situations where the building affected is used for educational
purposes.
Sec. 215. Environmental mitigation demonstration pilot program
This section would add an environmental research pilot
program to fund demonstration projects at airports to test the
practical application of experimental technologies.
Sec. 216. Allowable project costs for airport development program
This section would allow AIP eligible projects begun before
the actual award of AIP funding due to severe weather
considerations to remain eligible for AIP funds.
TITLE III--FAA ORGANIZATION AND REFORM
Sec. 301. Air Traffic Control Modernization Oversight Board
This section would establish the Modernization Board to
provide specific oversight of FAA's modernization activities.
The responsibilities of the Modernization Board would include
providing advice on the FAA's modernization program and non-
safety portions of FAA's strategic plan; approving FAA's
capital expenditures for modernization in excess of $100
million and the agency's annual F&E budget request; and
approving the Administrator's selections for the Chief
Operating Officer of the ATO and the head of the JPDO. The
Modernization Board would be composed of seven members: the FAA
Administrator, a representative from the DOD, one member
representing the public interest, one member who would be the
CEO of an airport, one member who would be the CEO of a
passenger or cargo airline, one representative from an FAA
labor union, and one representative from the GA community. This
new Modernization Board would replace the current management
advisory council and the air traffic services committee.
Sec. 302. ADS-B support pilot program
This pilot program would permit States, or any consortium of
two or more State or local governments, including airport
sponsors, to purchase, operate, and maintain ADS-B ground
equipment. ADS-B is one of the FAA's key modernization
technologies. It improves the situational awareness of pilots
by equipping aircraft with a data uplink/downlink and cockpit
display that provides information about other aircraft in their
vicinity. Under the pilot program, acquisition of ground-based
equipment will be eligible for AIP grants, even if a ground
station is not airport-specific. Projects would be funded out
of State apportionment funds at a 90 percent Federal share.
Although funded out of State apportionments, the ADS-B ground
station could benefit any category of public use airport. To
approve a project for funding, FAA would need to find that the
project provides a benefit to the NAS. Projects funded under
this program would supplement Federal ADS-B ground station
deployment. A greater number of States, regions, and airports
would benefit because the program would provide ADS-B coverage
to areas that would not be reached under the FAA's direct
procurement, as it is currently planned. The provision includes
language to provide flexibility in contracting to the FAA and
project sponsors to permit the most efficient acquisition of
ground stations funded under the pilot program.
Sec. 303. Facilitation of next generation air traffic services
This section would set forth factors that the FAA would
consider in determining whether to accept the provision of air
traffic services by non-government providers. Factors would
include the effect on the safety and efficiency of the NAS,
competition, the role of GA, and the widespread use of such
services at affordable rates.
Sec. 304. Clarification of authority to enter into reimbursable
agreements
This section would make a minor change to section 106(m) of
Title 49, United States Code, to clarify the FAA's authority
under that section, to be consistent with the FAA's broad
contract authority under section 106(l)(6), to enter into
reimbursable interagency agreements. This clarification is
necessary to correct any confusion resulting from language
added to 106(m) by Congress after the terrorist attacks of
September 11, 2001. Congress added the last sentence in 106(m)
to expressly allow FAA to provide services, equipment, etc. to
other agencies ``without reimbursement.'' This was intended,
for example, to allow FAA to provide services and personnel to
the newly created Transportation Security Administration,
without reimbursement. Such language was never intended to
alter FAA's pre-existing authority to enter into interagency
agreements that required reimbursement. This section clarifies
the last sentence of 106(m) by making it clear that the FAA may
perform work for other agencies ``with or without''
reimbursement.
Sec. 305. Clarification to acquisition reform authority
This section would repeal 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 procedures other than competitive procedures in various
compelling circumstances, for example, 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. The provision
would not change that flexibility. However, it would repeal
conflicting language that predated the 1996 reforms. Paragraph
40110(c)(4) of Title 49, United States Code, is an obsolete
grant of authority to FAA, which, prior to procurement reform,
was needed. Paragraph (c)(4) was an exception to a law that now
no longer applies to the FAA. Having this exception remain in
law could lead to confusion that FAA's authority is restricted.
Such a restriction would mean that FAA could not limit
competition in response to an emergency, as noted above, or
could not set aside procurements for small businesses, disabled
veteran-owned businesses, or small businesses owned and
controlled by socially and economically disadvantaged
minorities. Without this change FAA could not restrict
competition even if an international agreement requires the
agency to do so or use any of the other exceptions provided for
in the Competition in Contracting Act, as other Federal
agencies may do. Accordingly, this section would repeal
40110(c)(4).
Sec. 306. Assistance to other aviation authorities
This section would clarify the FAA's current authority to
provide air traffic services abroad, whether or not the foreign
entity is private or governmental, and that the FAA may
participate in any competition to provide such services. It
would also clarify that the Administrator may allow foreign
authorities to pay in arrears, rather than in advance, and that
any payment for such assistance may be credited to the current
applicable appropriations account.
Sec. 307. Presidential rank award program
In 1996, the FAA reformed its personnel system under special
authority provided by Congress, now codified under section
40122 of Title 49, United States Code, which exempted the FAA
from many requirements of the Federal government's personnel
system under Title 5, United States Code. As a ``non-Title 5''
agency, the FAA currently cannot participate in the
Presidential Rank Award Program. This section would lift that
restriction, and through an amendment to section 40122 that
takes into account the minor differences in nomenclature
between the FAA's new personnel system and the Title 5 system,
allow the FAA's executives and senior professionals to
participate in the Program.
Sec. 308. Next generation facilities needs assessment
This section would create a specific process for the FAA to
complete a comprehensive study and analysis of how the agency
might realign its services and facilities to help reduce
capital, operating, maintenance, and administrative costs on an
agency-wide basis with no adverse effect on safety. The FAA
would be required to develop criteria for realignment within
nine months of passage and make any recommendations for action
within nine months of the publication of the criteria. The
Modernization Board would be required to study the FAA's
recommendations, provide opportunity for public comment, and
report the Modernization Board's recommendations to Congress.
The Administrator would be prohibited from consolidating
additional TRACON facilities into the Southern California
TRACON, Memphis TRACON, and Houston TRACON until the
Modernization Board's recommendations are completed.
Sec. 309. Next Generation Air Transportation System Planning Office
This section would require the Administrator of the FAA,
the Secretary of Defense, the Administrator of the National
Aeronautics and Space Administration, the Secretary of
Commerce, the Secretary of Homeland Security, and the head of
any other Department or Federal agency from which the Secretary
of Transportation requests assistance to designate an office
responsible for carrying out NextGen responsibilities and
coordinating with other agencies involved in the NextGen
project.
This section also would require, within six months of
enactment, the development of a memorandum of understanding
between the offices participating in the NextGen project that
describes the responsibilities of each Department or agency and
the budgetary and staff resources committed to the project.
Sec. 310. Definition of air navigation facility
The statutory definition of an ``air navigation facility''
is used in a number of contexts, but one of the most important
is determining the eligibility for funding. This section would
update and broaden the definition of an air navigation facility
so that it would be clear that its scope includes the many
capital expenses directly related to the acquisition or
improvement of such facilities for the current or future NAS.
Sec. 311. Improved management of property inventory
This section would amend section 40110(a) of Title 49,
United States Code, to make it clear that FAA's current
authority to purchase and sell property includes the authority
to retain funds associated with disposal of property.
Currently, proceeds from property disposal are often not
available to the FAA, and as a result, some properties
unnecessarily remain in the FAA's active inventory for long
periods of time, due to costs associated with disposal, such as
demolition, environmental audits, and asbestos abatement costs.
Sec. 312. Educational requirements
This section would require the FAA to provide financial
support to the DOD for the education of the dependent children
of FAA employees in Puerto Rico and Guam.
Sec. 313. FAA personnel management system
This section would reform the process through which FAA
resolves labor disputes with employee unions arising in the
collective bargaining process. If the FAA Administrator or an
employees' union determines an impasse has been reached during
the collective bargaining process they are first required to
use the mediation services of the FMCS. Through this mediation
process the FAA Administrator and the employees' union may, by
mutual agreement, adopt procedures for the resolution of
disputes or impasses arising during the collective bargaining
process.
If the services of the FMCS do not lead to an agreement,
the FAA Administrator and the employees' union would be
required to submit their unresolved issues to the FSIP. FSIP
would assert jurisdiction and order binding arbitration by a
private arbitration board consisting of three members. To
choose the three members of the board, the Executive Director
of FSIP would first request from the Director of FMCS not less
than 15 arbitrators with Federal government experience. This
list would be provided to the FAA Administrator and the
employees' union, each of which must choose one arbitrator
within 10 days of receiving the list. The two arbitrators
chosen would then select a third arbitrator from the original
list. If the two arbitrators are unable to agree on a third
arbitrator, the FAA and the employees' union shall select the
third arbitrator by alternately striking the names from the
list of remaining arbitrators until one name remains.
If the FAA Administrator and the employees' union do not
agree on the framing of the issues to be submitted for
arbitration, the arbitration board shall frame the issues. The
arbitration board shall take into consideration the effect of
its arbitration decisions on the FAA's ability to attract and
retain a qualified workforce and on the agency's budget. The
arbitration board shall render its decision within 90 days of
appointment. Decisions of the arbitration board shall be
conclusive and binding upon the FAA and the employees' union.
Enforcement of the arbitration decisions would be in the
Jurisdiction of the U.S. District Court for the District of
Columbia.
Sec. 314. Rulemaking and report on ADS-B implementation
This section would require FAA to issue a report and
rulemaking on the adoption of ADS-B, a key NextGen technology.
TITLE IV--AIRLINE SERVICE IMPROVEMENTS AND SMALL COMMUNITY AIR SERVICE
IMPROVEMENTS
Sec. 401. Airline contingency service requirements
This section would require an air carrier to develop a
contingency plan to handle situations in which the departure of
a flight is substantially delayed while passengers are confined
to an aircraft. The plan must outline how the airline will
ensure the passengers are provided (a) adequate food, potable
water, and restroom facilities and (b) timely and accurate
information regarding the status of the flight. This plan must
be filed with the DOT, which will make the information publicly
available. In the absence of such a plan, the air carrier must
provide the passengers with the option to deplane after three
hours have elapsed, except if the pilot determines the flight
will leave within 30 minutes after the three-hour delay or if
there is a safety or security concern with doing so.
Sec. 402. Publication of customer service data and flight delay history
This section would require an air carrier to publish on
their website, and update monthly, a list of chronically
delayed flights operated by the air carrier. This section also
would require the air carrier to disclose the on-time
performance for a chronically delayed flight and cancellation
rate for the flight when a customer books a flight on the
carrier's website, prior to actual purchase of a ticket.
Sec. 403. EAS connectivity program
This section would establish a program under which the
Secretary of Transportation would require, in up to 10
communities, air carriers providing small community air service
and major air carriers serving large hub airports to
participate in code-share arrangements consistent with normal
industry practice whenever and wherever the Secretary
determines that such multiple code-sharing arrangements would
improve air transportation services.
Sec. 404. Extension of final order establishing mileage adjustment
eligibility
This section would extend a provision in Vision 100 that
specifies that the most commonly used route between an eligible
place and the nearest medium hub airport or large hub airport
is to be used to measure the highway mileage considered in
reviewing any action to eliminate compensation for EAS to such
place or to terminate the place's compensation eligibility for
such service. The section also requires the Secretary, within
60 days after receiving a review request, to (a) determine
whether the eligible place would have been subject to such
elimination or termination under specified law based on such a
determination of highway mileage, and (b) issue a final order
regarding eligibility for EAS compensation. It would further
terminate any such final order on September 30, 2011.
Sec. 405. EAS contract guidelines
This section would allow the Secretary of Transportation to
incorporate financial incentives in EAS contracts based on
performance goals and to execute long-term EAS contracts when
in the public interest to do so. These are modifications to the
guidelines used to determine the reasonable amount of
compensation required to ensure continued air service for an
EAS airport.
Sec. 406. Conversion of former EAS airports
This section would require the Secretary of Transportation
to establish a program to provide GA conversion funding for
airports serving eligible places that the Secretary has
determined no longer qualify as eligible places for EAS.
Sec. 407. Essential Air Service Reform
This section would require the FAA to continue to make
funds available under section 45303 of Title 49, United States
Code, to support the EAS program. A total of at least $133
million would be authorized to carry out the program, an
increase of at least $6 million above the previous authorized
level.
Sec. 408. Clarification of air carrier fee disputes
This provision would amend current law to clarify that
section 47129 of Title 49, United States Code, applies to both
air carriers and foreign air carriers. This section provides an
expedited administrative forum for determining whether
significant carrier fees levied by airports are reasonable.
Sec. 409. Small community air service
This section would give priority to multiple communities
who cooperate to submit a region or multi-State application for
funding under the SCASDP.
Sec. 410. Contract Tower Program
This section would authorize spending for the ATC contract
tower program at a level of $8.5 million for FY 2008; $9
million for FY 2009; $9.5 million for FY 2010; and $10 million
for FY 2011. The section also would adjust the timing of
conducting benefit/cost criteria for such towers, increase the
maximum Federal participation in new tower construction, and
establish uniform standards for contract tower safety audits.
Sec. 411. Airfares for members of the Armed Forces
In recognition of the contributions members of the Armed
Forces and their families make to the Nation, Congress would
recommend, in this section, that air carriers offer all members
of the Armed Forces on active duty (a) reduced fares that are
comparable to the lowest airfare for ticketed flights and (b)
flexible terms to purchase, modify, or cancel tickets without
time restrictions, fees, and penalties.
Sec. 412. Expansion of DOT airline consumer complaint investigations
This section would expand airline customer complaint
investigations by the DOT.
Sec. 413. EAS Marketing
This section would improve the EAS program by requiring
airlines applying to provide EAS service to submit a marketing
plan with their EAS application.
Sec. 413. Extraperimetal and intraperimetal slots at Ronald Reagan
Washington National Airport
This section would provide an additional 12 slots at
Washington National Airport for flights beyond the 1,250 mile
Perimeter Rule limit, and an additional eight slots at the
airport for flights within the Perimeter Rule limit.
TITLE V--AVIATION SAFETY
Sec. 501. Runway incursion reduction
This section would require the FAA to issue a plan to
reduce runway incursions in the NAS not later than December 31,
2008, with a requirement for that plan to be integrated into
the FAA's OEP.
Sec. 502. Aircraft fuel tank safety improvement
This section would require the FAA to finalize a rule
regarding the reduction of fuel tank flammability for transport
aircraft by December 31, 2007.
Sec. 503. Judicial review of denial of airman certificates
This section would provide the FAA with the necessary
authority to seek judicial review of NTSB decisions involving
airman certificate denials. Since the early 1990's, the FAA has
had authority to seek judicial review of NTSB decisions that
are issued under sections 44709 and 46301(d)(5) of Title 49,
United States Code, which involve orders of suspension and
revocation, and civil penalties against airmen. FAA has filed
petitions for review of only three NTSB cases. As with the
current judicial review authority, the FAA does not anticipate
appealing many decisions under this new provision. This section
would permit the opportunity for review if the agency thought
it was in the interest of their safety enforcement program.
Sec. 504. Release of data relating to abandoned type certificates and
supplemental type certificates
This section would clarify that FAA may release data
related to abandoned aircraft type certificates and
supplemental aircraft type certificates, without the consent of
the owner of record, if the FAA first determines that (a) there
has been no proprietary interest exercised over the data for
three years, (b) the type certificate owner has not been
located, and (c) it would enhance safety if the data were
released to aircraft operators in order to safely maintain and
operate their vintage aircraft. The provision is necessary to
address routine requests the agency receives from individuals
and vintage airplane club members for aircraft certification
data relating to older aircraft in order to maintain the
airworthiness of their aircraft. In some instances, the owner
of record of the type certificates or supplemental type
certificates cannot be found.
Sec. 505. Design organization certificates
This section would extend by one year the timeline for FAA
to begin to issue design organization certificates. It also
would ensure that the statute permits all the privileges
originally envisioned by the industry and the FAA under the
scope of a certified design organization provision when the law
was originally passed, including production.
Sec. 506. FAA access to criminal history records or database systems
This section would provide statutory authority for the FAA
to continue to access the National Crime Information Center and
related State criminal history databases so that the FAA may
continue to perform its critical safety and security functions.
Specifically, certain designated FAA staff would 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 officers in a
State. The FAA has acknowledged that criminal investigations
should only be carried out by agents with law-enforcement
authority and does not intend to use this access to conduct
criminal investigations.
Sec. 507. Flight crew fatigue
This section would require a National Academy of Sciences
study of pilot fatigue and would initiate a process to carry
out the recommendations of the Civil Aerospace Medical
Institute study on flight attendant fatigue.
Sec. 508. Increasing safety for helicopter emergency medical service
operators
This section would require all helicopter emergency medical
service operators to comply with the safety regulations in part
135 of title 14, CFR, whenever there is a medical crew on
board, without regard to whether there are patients on board
the helicopter. This section also would require the FAA to
initiate a rulemaking to require these operators to use a
standardized checklist of risk evaluation factors to determine
whether a mission should be accepted. This section would
require another FAA rulemaking to create a standardized flight
dispatch procedure for these operators and require any
helicopter used for these operations to have on-board
operational terrain awareness and warning system if the
helicopter is ordered, purchased, or otherwise obtained after
the date of enactment. An additional rulemaking would be
required, after a feasibility study, to require flight data and
cockpit voice recorders on board these helicopters.
Sec. 509. Cabin crew communication requirements
This section would prevent an air carrier from using any
person as a flight attendant unless that person has the ability
to read, speak, and write English. This section does not apply
to service as a flight attendant on a flight operated solely
between points outside the United States.
Sec. 510. Clarification of memorandum of understanding with OSHA
This would require the FAA to establish a plan and a
coordinating body to examine and make recommendations to apply
appropriate OSHA Administration requirements to the aircraft
cabin.
Sec. 511. Acceleration of development and implementation of required
navigation performance approach procedures
This provision would require the FAA to set a target of
achieving a minimum of 200 required navigational performance
procedures per year through 2012.
TITLE VI--AVIATION RESEARCH
Sec. 601. Airport Cooperative Research Program
This section would provide a permanent authorization for
the ACRP, which was originally established as a pilot research
program under Vision 100. Since Vision 100, environmental R&D
has assumed greater urgency given the need to reduce the growth
of significant environmental impacts at airports as aviation
activity grows. This section would provide for the ACRP to
enhance R&D support specifically related to airport needs. This
section would also increase the ACRP authorization by
$5,000,000.
Sec. 602. Reduction of noise, emissions, and energy consumption from
civilian aircraft
This section would require the FAA Administrator to
establish a research program related to reducing civilian
aircraft source noise, emissions, and energy consumption
through grants or other measures. The section would also set
performance objectives the program must accomplish.
Sec. 603. Production of clean coal fuel technology for civilian
aircraft
This section would require the Secretary of Transportation
to establish research Centers of Excellence to study the
development of jet fuel from clean coal technologies through
grants or other measures, with a requirement to include
educational and research institutions in the initiative.
Sec. 604. Advisory committee on future of aeronautics
This section would establish the ``Advisory Committee on
the Future of Aeronautics,'' to examine the best governmental
and organizational structures for civil aeronautics R&D.
Sec. 605. Research program to improve airfield pavements
This provision would extend the authorization of an
existing pavement research program.
Sec. 606. Wake turbulence, volcanic ash, and weather research
This section would require the FAA to conduct safety
research on wake vortexes, volcanic ash, and weather.
Sec. 607. Incorporation of unmanned aerial systems into FAA plans and
policies
This section would enable all classes of unmanned aerial
systems to be integrated safely into the NAS for civil use and
streamline the procedures for unmanned aerial systems operators
to obtain the necessary FAA permits to file and fly.
Sec. 608. Reauthorization of center of excellence in applied research
and training in the use of advanced materials in transport
aircraft
This section would reauthorize a center of excellence in
applied research and training in the use of advanced materials
in transport aircraft.
TITLE VII--MISCELLANEOUS
Sec. 701. General authority
This section would extend the authority of the Secretary of
Transportation to provide war risk insurance and reinsurance
until October 1, 2017.
Sec. 702. Human intervention management study
This section would require the FAA Administrator to develop
a Human Intervention Management Study program for cabin crews
employed by commercial air carriers in the United States.
Sec. 703. Airport program modifications
This section would require the FAA Administrator to
establish a formal, structured certification training program
for the airport concessions disadvantaged business enterprise
program. The section also would allow the FAA Administrator to
appoint three additional staff to implement the program.
Sec. 704. Miscellaneous program extensions
This section would extend the current AIP eligibility for
the Metropolitan Washington Airports Authority, which oversees
both Ronald Reagan Washington National Airport and Washington
Dulles International Airport, through FY 2011. It is currently
authorized through FY 2008.
This section also would extend AIP eligibility for the
Marshall Islands, the Federated States of Micronesia, Palau,
and Midway Island Airport.
Sec. 705. Extension of competitive access reports
This provision would make permanent the requirement for air
carriers to file competitive access reports by eliminating the
current sunset provision. Vision 100 requires large or medium
hub airports to file semi-annual competition disclosure reports
with the Secretary of Transportation (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 time frame for
accommodation. The current competitive access report
requirement terminates on October 1, 2008.
Although there have been no competitive access reports
filed to date, there are several possible reasons: (a) the
filing requirement itself may have deterred airports from
denying access; (b) entry-friendly practices may have
facilitated access; or (c) airports may have excess capacity
and have been able to accommodate airline requests. Maintaining
the report requirement by repealing the sunset provision could
help to ensure that airlines seeking to expand will have
facility access. Moreover, the traveling public is likely to
benefit by assurances that airport facilities will be made
available to airline competitors, thereby offering more service
at potentially lower fares.
Sec. 706. Modification of FAA's age 60 standard
This section would sunset the existing Age-60 rule, that
forces the retirement of commercial airline pilots upon
achieving the age of 60, within 30 days after enactment of the
bill. Upon sunset of the Age-60 rule, commercial carriers'
pilots-in-command would be permitted to fly up to their 65th
birthday, if a co-pilot is 60 years old or below. Pilots that
have achieved the age of 60 prior to the effective date of the
change would not be eligible to make a claim for seniority with
a former air carrier of employment. This section would also
require a GAO report on the impact of this modification on
safety, within two years of its effective date.
Sec. 707. Update on overflights
This section would direct the FAA to ensure that existing
overflight fees are reasonably related to agency costs of
providing air traffic services for overflights and would
require that the FAA update the fees to current cost levels and
begin collection of the appropriate amount after considering
recommendations made by the Aviation Rulemaking Committee for
Overflight Fees. The section would further permit the FAA to
modify the fee periodically based on the cost of providing such
service.
Sec. 708. Technical corrections
This section would provide technical corrections to ensure
that the Merit Systems Protection Board has both the
jurisdiction to investigate claims made against the FAA and the
same enforcement authority in dealing with the FAA that it does
for all other Federal agencies.
Sec. 709. FAA technical training and staffing
This section would instruct the GAO to conduct a study of
the training of FAA systems specialists, including a
recommendation for a future approach to training these
employees. This section also would require the FAA to develop a
staffing model for aviation safety inspectors within 18 months
of enactment.
Sec. 710. Commercial air tour operators in national parks
This section would amend language in PL 106-181, Title
VIII--National Parks Air Tour Management Act, to incorporate
GAO recommendations.
Sec. 711. Phaseout of stage 1 and 2 aircraft
This section would phase in a prohibition on the operation
of aircraft not in compliance with Stage 3 noise levels over a
five year period.
Sec. 712. Weight restrictions at Teterboro airport
This section would prohibit the FAA from eliminating weight
restrictions currently in force at Teterboro airport.
Sec. 713. Fair and equitable resolution of labor integration issues
This section would create protections for workers at
airlines that merge.
Sec. 714. Pilot program for redevelopment of airport properties
This section would establish a pilot program for airport
property redevelopment that would help expedite the development
of land acquired by airports to mitigate noise issues.
Rollcall Votes in Committee
Senators Nelson and Sununu offered an amendment to strike
the provision relating to the modernization surcharge. On a
rollcall vote of 11 yeas and 12 nays as follows, the amendment
was defeated:
YEAS--11 NAYS--12
Mr. Dorgan\1\ Mr. Inouye
Mr. Nelson Mr. Rockefeller
Mr. Pryor Mr. Kerry
Mr. Carper Mrs. Boxer\1\
Mrs. Hutchison Ms. Cantwell
Ms. Snowe Mr. Lautenberg
Mr. Smith Mrs. McCaskill
Mr. Ensign Ms. Klobuchar
Mr. Sununu Mr. Stevens
Mr. DeMint Mr. McCain\1\
Mr. Vitter\1\ Mr. Lott
Mr. Thune
\1\ By proxy.
Senators Smith and Cantwell offered an amendment to
increase the number of slots at Reagan-National Airport. On a
rollcall vote of 12 yeas and 11 nays as follows, the amendment
was adopted:
YEAS--12 NAYS--11
Mr. Rockefeller Mr. Kerry\1\
Mrs. Boxer\1\ Mr. Dorgan\1\
Ms. Cantwell Mr. Nelson
Mr. Carper Mr. Lautenberg
Mrs. McCaskill Mr. Pryor
Mr. Stevens Ms. Klobuchar
Mr. Lott Mr. McCain\1\
Mr. Smith Mrs. Hutchison
Mr. Ensign Ms. Snowe
Mr. DeMint Mr. Sununu
Mr. Vitter\1\ Mr. Thune
Mr. Inouye
\1\ By proxy.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, 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 material is printed
in italic, existing law in which no change is proposed is shown
in roman):
TITLE 49. TRANSPORTATION
SUBTITLE I. DEPARTMENT OF TRANSPORTATION
CHAPTER 1. ORGANIZATION
Sec. 106. Federal Aviation Administration
(a) The Federal Aviation Administration is an administration
in the Department of Transportation.
(b) The head of the Administration is the Administrator. The
Administration has a Deputy Administrator. They are appointed
by the President, by and with the advice and consent of the
Senate. When making an appointment, the President shall
consider the fitness of the individual to carry out efficiently
the duties and powers of the office. Except as provided in
subsection (f) or in other provisions of law, the Administrator
reports directly to the Secretary of Transportation. The term
of office for any individual appointed as Administrator after
August 23, 1994, shall be 5 years.
(c) The Administrator must--
(1) be a citizen of the United States;
(2) be a civilian; and
(3) have experience in a field directly related to
aviation.
(d) (1) The Deputy Administrator must be a citizen of the
United States and have experience in a field directly related
to aviation. An officer on active duty in an armed force may be
appointed as Deputy Administrator. However, if the
Administrator is a former regular officer of an armed force,
the Deputy Administrator may not be an officer on active duty
in an armed force, a retired regular officer of an armed force,
or a former regular officer of an armed force.
(2) The annual rate of basic pay of the Deputy Administrator
shall be set by the Secretary but shall not exceed the annual
rate of basic pay payable to the Administrator of the Federal
Aviation Administration.
(3) An officer on active duty or a retired officer serving as
Deputy Administrator is entitled to hold a rank and grade not
lower than that held when appointed as Deputy Administrator.
The Deputy Administrator may elect to receive (A) the pay
provided by law for the Deputy Administrator, or (B) the pay
and allowances or the retired pay of the military grade held.
If the Deputy Administrator elects to receive the military pay
and allowances or retired pay, the Administration shall
reimburse the appropriate military department from funds
available for the expenses of the Administration.
(4) The appointment and service of a member of the armed
forces as a Deputy Administrator does not affect the status,
office, rank, or grade held by that member, or a right or
benefit arising from the status, office, rank, or grade. The
Secretary of a military department does not control the member
when the member is carrying out duties and powers of the Deputy
Administrator.
(e) The Administrator and the Deputy Administrator may not
have a pecuniary interest in, or own stock in or bonds of, an
aeronautical enterprise, or engage in another business,
vocation, or employment.
(f) Authority of the Secretary and the Administrator.--
(1) Authority of the Secretary.--Except as provided
in paragraph (2), the Secretary of Transportation shall
carry out the duties and powers, and controls the
personnel and activities, of the Administration.
Neither the Secretary nor the Administrator may submit
decisions for the approval of, or be bound by the
decisions or recommendations of, a committee, board, or
organization established by executive order.
(2) Authority of the administrator.--The
Administrator--
(A) is the final authority for carrying out
all functions, powers, and duties of the
Administration relating to--
(i) the appointment and employment of
all officers and employees of the
Administration (other than Presidential
and political appointees);
(ii) the acquisition and maintenance
of property, services, and equipment of
the Administration;
(iii) except as otherwise provided in
paragraph (3), the promulgation of
regulations, rules, orders, circulars,
bulletins, and other official
publications of the Administration; and
(iv) any obligation imposed on the
Administrator, or power conferred on
the Administrator, by the Air Traffic
Management System Performance
Improvement Act of 1996 (or any
amendment made by that Act);
(B) shall offer advice and counsel to the
President with respect to the appointment and
qualifications of any officer or employee of
the Administration to be appointed by the
President or as a political appointee;
(C) may delegate, and authorize successive
redelegations of, to an officer or employee of
the Administration any function, power, or duty
conferred upon the Administrator, unless such
delegation is prohibited by law; and
(D) except as otherwise provided for in this
title, and notwithstanding any other provision
of law, shall not be required to coordinate,
submit for approval or concurrence, or seek the
advice or views of the Secretary or any other
officer or employee of the Department of
Transportation on any matter with respect to
which the Administrator is the final authority.
(3) Regulations.--
(A) In general.--In the performance of the
functions of the Administrator and the
Administration, the Administrator is authorized
to issue, rescind, and revise such regulations
as are necessary to carry out those functions.
The issuance of such regulations shall be
governed by the provisions of chapter 5 of
title 5. The Administrator shall act upon all
petitions for rulemaking no later than 6 months
after the date such petitions are filed by
dismissing such petitions, by informing the
petitioner of an intention to dismiss, or by
issuing a notice of proposed rulemaking or
advanced notice of proposed rulemaking. The
Administrator shall issue a final regulation,
or take other final action, not later than 16
months after the last day of the public comment
period for the regulations or, in the case of
an advanced notice of proposed rulemaking, if
issued, not later than 24 months after the date
of publication in the Federal Register of
notice of the proposed rulemaking. On February
1 and August 1 of each year 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
letter listing each deadline the Administrator
missed under this subparagraph during the 6-
month period ending on such date, including an
explanation for missing the deadline and a
projected date on which the action that was
subject to the deadline will be taken.
(B) Approval of Secretary of
Transportation.--
(i) The Administrator may not issue a
proposed regulation or final regulation
that is likely to result in the
expenditure by State, local, and tribal
governments in the aggregate, or by the
private sector, of $250,000,000 or more
(adjusted annually for inflation
beginning with the year following the
date of the enactment of the Wendell H.
Ford Aviation Investment and Reform Act
for the 21st Century [enacted April 5,
2000]) in any year, or any regulation
which is significant, unless the
Secretary of Transportation approves
the issuance of the regulation in
advance. For purposes of this
paragraph, a regulation is significant
if the Administrator, in consultation
with the Secretary (as appropriate),
determines that the regulation is
likely to--
(I) have an annual effect on
the economy of $250,000,000 or
more or adversely affect in a
substantial material way the
economy, a sector of the
economy, productivity,
competition, jobs, the
environment, public health or
safety, or State, local, or
tribal governments or
communities; or
(II) raise novel or
significant legal or policy
issues arising out of legal
mandates that may substantially
and materially affect other
transportation modes.
(ii) In an emergency, the
Administrator may issue a regulation
described in clause (i) without prior
approval by the Secretary, but any such
emergency regulation is subject to
ratification by the Secretary after it
is issued and shall be rescinded by the
Administrator within 5 days (excluding
Saturdays, Sundays, and legal public
holidays) after issuance if the
Secretary fails to ratify its issuance.
(iii) Any regulation that does not
meet the criteria of clause (i), and
any regulation or other action that is
a routine or frequent action or a
procedural action, may be issued by the
Administrator without review or
approval by the Secretary.
(iv) The Administrator shall submit a
copy of any regulation requiring
approval by the Secretary under clause
(i) to the Secretary, who shall either
approve it or return it to the
Administrator with comments within 45
days after receiving it.
(C) Periodic review.--
(i) Beginning on the date which is 3
years after the date of the enactment
of the Air Traffic Management System
Performance Improvement Act of 1996,
the Administrator shall review any
unusually burdensome regulation issued
by the Administrator after such date of
enactment beginning not later than 3
years after the effective date of the
regulation to determine if the cost
assumptions were accurate, the benefit
of the regulations, and the need to
continue such regulations in force in
their present form.
(ii) The Administrator may identify
for review under the criteria set forth
in clause (i) unusually burdensome
regulations that were issued before the
date of the enactment of the Air
Traffic Management System Performance
Improvement Act of 1996 [enacted Oct.
9, 1996] and that have been in force
for more than 3 years.
(iii) For purposes of this
subparagraph, the term ``unusually
burdensome regulation'' means any
regulation that results in the annual
expenditure by State, local, and tribal
governments in the aggregate, or by the
private sector, of $25,000,000 or more
(adjusted annually for inflation
beginning with the year following the
date of the enactment of the Air
Traffic Management System Performance
Act of 1996 ) in any year.
(iv) The periodic review of
regulations may be performed by
advisory committees and the Management
Advisory Council established under
subsection (p).
(4) Definition of political appointee.--For purposes
of this subsection, the term ``political appointee''
means any individual who--
(A) is employed in a position listed in
sections 5312 through 5316 of title 5 (relating
to the Executive Schedule);
(B) is a limited term appointee, limited
emergency appointee, or noncareer appointee in
the Senior Executive Service, as defined under
paragraphs (5), (6), and (7), respectively, of
section 3132(a) of title 5; or
(C) is employed in a position in the
executive branch of the Government of a
confidential or policy-determining character
under schedule C of subpart C of part 213 of
title 5 of the Code of Federal Regulations.
(g) Duties and powers of Administrator.--
(1) Except as provided in paragraph (2) of this
subsection, the Administrator shall carry out--
(A) duties and powers of the Secretary of
Transportation under subsection (f) of this
section related to aviation safety (except
those related to transportation, packaging,
marking, or description of hazardous material)
and stated in sections 308(b), 1132(c) and (d),
40101(c), 40103(b), 40106(a), 40108, 40109(b),
40113(a), 40113(c), 40113(d), 40113(e),
40114(a), and 40119, chapter 445 (except
sections 44501(b), 44502(a)(2), 44502(a)(3),
44502(a)(4), 44503, 44506, 44509, 44510, 44514,
and 44515), chapter 447 (except sections 44717,
44718(a), 44718(b), 44719, 44720, 44721(b),
44722, and 44723), chapter 449 (except sections
44903(d), 44904, 44905, 44907-44911, 44913,
44915, and 44931-44934), chapter 451, chapter
453, sections 46104, 46301(d) and (h)(2),
46303(c), 46304-46308, 46310, 46311, and 46313-
46316, chapter 465, and sections 47504(b)
(related to flight procedures), 47508(a), and
48107 of this title; and
(B) additional duties and powers prescribed
by the Secretary of Transportation.
(2) In carrying out sections 40119, 44901, 44903(a)-
(c) and (e), 44906, 44912, 44935-44937, 44938(a) and
(b), and 48107 of this title, paragraph (1)(A) of this
subsection does not apply to duties and powers vested
in the Director of Intelligence and Security by section
44931 of this title.
(h) Section 40101(d) of this title applies to duties and
powers specified in subsection (g)(1) of this section. Any of
those duties and powers may be transferred to another part of
the Department only when specifically provided by law or a
reorganization plan submitted under chapter 9 of title 5. A
decision of the Administrator in carrying out those duties or
powers is administratively final.
(i) The Deputy Administrator shall carry out duties and
powers prescribed by the Administrator. The Deputy
Administrator acts for the Administrator when the Administrator
is absent or unable to serve, or when the office of the
Administrator is vacant.
(j) There is established within the Federal Aviation
Administration an institute to conduct civil aeromedical
research under section 44507 of this title. Such institute
shall be known as the ``Civil Aeromedical Institute''. Research
conducted by the institute should take appropriate advantage of
capabilities of other government agencies, universities, or the
private sector.
(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.
Such sums shall remain available until expended.
(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) Such sums as may be necessary for fiscal
years 2004 through 2007 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) Such sums as may be necessary for fiscal
years 2004 through 2007 to carry out the
Aviation Safety Reporting System.
(l) Personnel and services.--
(1) Officers and employees.--Except as provided in
subsections (a) and (g) of section 40122, the
Administrator is authorized, in the performance of the
functions of the Administrator, to appoint, transfer,
and fix the compensation of such officers and
employees, including attorneys, as may be necessary to
carry out the functions of the Administrator and the
Administration. In fixing compensation and benefits of
officers and employees, the Administrator shall not
engage in any type of bargaining, except to the extent
provided for in section 40122(a), nor shall the
Administrator be bound by any requirement to establish
such compensation or benefits at particular levels.
(2) Experts and consultants.--The Administrator is
authorized to obtain the services of experts and
consultants in accordance with section 3109 of title 5.
(3) Transportation and per diem expenses.--The
Administrator is authorized to pay transportation
expenses, and per diem in lieu of subsistence expenses,
in accordance with chapter 57 of title 5.
(4) Use of personnel from other agencies.--The
Administrator is authorized to utilize the services of
personnel of any other Federal agency (as such term is
defined under section 551(1) of title 5).
(5) Voluntary services.--
(A) General rule.--In exercising the
authority to accept gifts and voluntary
services under section 326 of this title, and
without regard to section 1342 of title 31, the
Administrator may not accept voluntary and
uncompensated services if such services are
used to displace Federal employees employed on
a full-time, part-time, or seasonal basis.
(B) Incidental expenses.--The Administrator
is authorized to provide for incidental
expenses, including transportation, lodging,
and subsistence, for volunteers who provide
voluntary services under this subsection.
(C) Limited treatment as federal employees.--
An individual who provides voluntary services
under this subsection shall not be considered a
Federal employee for any purpose other than for
purposes of chapter 81 of title 5, relating to
compensation for work injuries, and chapter 171
of title 28, relating to tort claims.
(6) Contracts.--The Administrator is authorized to
enter into and perform such contracts, leases,
cooperative agreements, or other transactions as may be
necessary to carry out the functions of the
Administrator and the Administration. The Administrator
may enter into such contracts, leases, cooperative
agreements, and other transactions with any Federal
agency (as such term is defined in section 551(1) of
title 5) or any instrumentality of the United States,
any State, territory, or possession, or political
subdivision thereof, any other governmental entity, or
any person, firm, association, corporation, or
educational institution, on such terms and conditions
as the Administrator may consider appropriate.
(7) Air Traffic Services.--In determining what
actions to take, by rule or through an agreement or
transaction under paragraph (6) or under section 44502,
to permit non-government providers of communications,
navigation, surveillance or other services to provide
such services in the National Airspace System, or to
require the usage of such services, the Administrator
shall consider whether such actions would--
(A) promote the safety of life and property;
(B) improve the efficiency of the National
Airspace System and reduce the regulatory
burden upon National Airspace System users,
based upon sound engineering principles, user
operational requirements, and marketplace
demands;
(C) encourage competition and provide
services to the largest feasible number of
users; and
(D) take into account the unique role served
by general aviation.
(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,
[without] with or without reimbursement, supplies, personnel,
services, and equipment other than administrative supplies or
equipment.
(n) Acquisition.--
(1) In general.--The Administrator is authorized--
(A) to acquire (by purchase, lease,
condemnation, or otherwise), construct,
improve, repair, operate, and maintain--
(i) air traffic control facilities
and equipment;
(ii) research and testing sites and
facilities; and
(iii) such other real and personal
property (including office space and
patents), or any interest therein,
within and outside the continental
United States as the Administrator
considers necessary;
(B) to lease to others such real and personal
property; and
(C) to provide by contract or otherwise for
eating facilities and other necessary
facilities for the welfare of employees of the
Administration at the installations of the
Administration, and to acquire, operate, and
maintain equipment for these facilities.
(2) Title.--Title to any property or interest therein
acquired pursuant to this subsection shall be held by
the Government of the United States.
(o) Transfers of funds.--The Administrator is authorized to
accept transfers of unobligated balances and unexpended
balances of funds appropriated to other Federal agencies (as
such term is defined in section 551(1) of title 5) to carry out
functions transferred by law to the Administrator or functions
transferred pursuant to law to the Administrator on or after
the date of the enactment of the Air Traffic Management System
Performance Improvement Act of 1996.
[(p) Management Advisory Council and Air Traffic Services
Board.--
[(1) Establishment.--Within 3 months after the date
of the enactment of the Air Traffic Management System
Performance Improvement Act of 1996, the Administrator
shall establish an advisory council which shall be
known as the Federal Aviation Management Advisory
Council (in this subsection referred to as the
``Council''). With respect to Administration
management, policy, spending, funding, and regulatory
matters affecting the aviation industry, the Council
may submit comments, recommended modifications, and
dissenting views to the Administrator. The
Administrator shall include in any submission to
Congress, the Secretary, or the general public, and in
any submission for publication in the Federal Register,
a description of the comments, recommended
modifications, and dissenting views received from the
Council, together with the reasons for any differences
between the views of the Council and the views or
actions of the Administrator.
[(2) Membership.--The Council shall consist of 13
members, who shall consist of--
[(A) a designee of the Secretary of
Transportation;
[(B) a designee of the Secretary of Defense;
[(C) 10 members representing aviation
interests, appointed by--
[(i) in the case of initial
appointments to the Council, the
President by and with the advice and
consent of the Senate, except that
initial appointments made after May 1,
2003, shall be made by the Secretary of
Transportation; and
[(ii) in the case of subsequent
appointments to the Council, the
Secretary of Transportation; and
[(D) 1 member appointed, from among
individuals who are the leaders of their
respective unions of air traffic control system
employees, by the Secretary of Transportation.
[(3) Qualifications.--No officer or employee of the
United States Government may be appointed to the
Council under paragraph (2)(C) or to the Air Traffic
Services Committee.
[(4) Functions.--
[(A) In general.--
[(i) The Council shall provide advice
and counsel to the Administrator on
issues which affect or are affected by
the operations of the Administrator.
The Council shall function as an
oversight resource for management,
policy, spending, and regulatory
matters under the jurisdiction of the
Administration.
[(ii) The Council shall review the
rulemaking cost-benefit analysis
process and develop recommendations to
improve the analysis and ensure that
the public interest is fully protected.
[(iii) The Council shall review the
process through which the
Administration determines to use
advisory circulars and service
bulletins.
[(B) Meetings.--The Council shall meet on a
regular and periodic basis or at the call of
the chairman or of the Administrator.
[(C) Access to documents and staff.--The
Administration may give the Council or Air
Traffic Services Committee appropriate access
to relevant documents and personnel of the
Administration, and the Administrator shall
make available, consistent with the authority
to withhold commercial and other proprietary
information under section 552 of title 5
(commonly known as the ``Freedom of Information
Act''), cost data associated with the
acquisition and operation of air traffic
service systems. Any member of the Council or
Air Traffic Services Committee who receives
commercial or other proprietary data from the
Administrator shall be subject to the
provisions of section 1905 of title 18,
pertaining to unauthorized disclosure of such
information.
[(5) Federal Advisory Committee Act not to apply.--
The Federal Advisory Committee Act (5 U.S.C. App.) does
not apply to the Council, the Air Traffic Services
Committee, or such aviation rulemaking committees as
the Administrator shall designate.
[(6) Administrative matters.--
[(A) Terms of members appointed under
paragraph (2)(c).--Members of the Council
appointed under paragraph (2)(C) shall be
appointed for a term of 3 years. Of the members
first appointed by the President under
paragraph (2)(C)--
[(i) 3 shall be appointed for terms
of 1 year;
[(ii) 4 shall be appointed for terms
of 2 years; and
[(iii) 3 shall be appointed for terms
of 3 years.
[(B) Term for air traffic control
representative.--The member appointed under
paragraph (2)(D) shall be appointed for a term
of 3 years, except that the term of such
individual shall end whenever the individual no
longer meets the requirements of paragraph
(2)(D).
[(C) Terms for Air Traffic Services Committee
members.--The members appointed to the Air
Traffic Services Committee shall be appointed
for a term of 5 years, except that the first
members of the Committee shall be the members
of the Air Traffic Services Subcommittee of the
Council on the day before the date of enactment
of the Vision 100--Century of Aviation
Reauthorization Act who shall serve in an
advisory capacity until such time as the
President appoints the members of the Committee
under paragraph (7).
[(D) Reappointment.--An individual may not be
appointed to the Committee to more than two 5-
year terms.
[(E) Vacancy.--Any vacancy on the Council or
Committee shall be filled in the same manner as
the original appointment, except that any
vacancy caused by a member appointed by the
President under paragraph (2)(C)(i) shall be
filled by the Secretary in accordance with
paragraph (2)(C)(ii). Any member appointed to
fill a vacancy occurring before the expiration
of the term for which the member's predecessor
was appointed shall be appointed for the
remainder of that term.
[(F) Continuation in office.--A member of the
Council or Committee whose term expires shall
continue to serve until the date on which the
member's successor takes office.
[(G) Removal.--Any member of the Council
appointed under paragraph (2)(D) may be removed
for cause by the President or Secretary whoever
makes the appointment. Any member of the
Committee may be removed for cause by the
Secretary.
[(H) Claims against members of Committee.--
[(i) In general.--A member appointed
to the Committee shall have no personal
liability under Federal law with
respect to any claim arising out of or
resulting from an act or omission by
such member within the scope of service
as a member of the Committee.
[(ii) Effect on other law.--This
subparagraph shall not be construed--
[(I) to affect any other
immunity or protection that may
be available to a member of the
Subcommittee [Committee] under
applicable law with respect to
such transactions;
[(II) to affect any other
right or remedy against the
United States under applicable
law; or
[(III) to limit or alter in
any way the immunities that are
available under applicable law
for Federal officers and
employees.
[(I) Ethical considerations.--
[(i) Financial disclosure.--During
the entire period that an individual is
serving as a member of the Committee,
such individual shall be treated as
serving as an officer or employee
referred to in section 101(f) of the
Ethics in Government Act of 1978 for
purposes of title I of such Act; except
that section 101(d) of such Act shall
apply without regard to the number of
days of service in the position.
[(ii) Restrictions on post-
employment.--For purposes of section
207(c) of title 18, an individual who
is a member of the Committee shall be
treated as an employee referred to in
section 207(c)(2)(A)(i) of such title
during the entire period the individual
is a member of the Committee; except
that subsections (c)(2)(B) and (f) of
section 207 of such title shall not
apply.
[(J) Chairman; vice chairman.--The Council
shall elect a chair and a vice chair from among
the members appointed under paragraph (2)(C),
each of whom shall serve for a term of 1 year.
The vice chair shall perform the duties of the
chairman in the absence of the chairman.
[(K) Travel and per diem.--Each member of the
Council or Committee shall be paid actual
travel expenses, and per diem in lieu of
subsistence expenses when away from his or her
usual place of residence, in accordance with
section 5703 of title 5.
[(L) Detail of personnel from the
administration.--The Administrator shall make
available to the Council or Committee such
staff, information, and administrative services
and assistance as may reasonably be required to
enable the Council or Committee to carry out
its responsibilities under this subsection.
[(7) Air Traffic Services Committee.--
[(A) Establishment.--The Administrator shall
establish a committee that is independent of
the Council by converting the Air Traffic
Services Subcommittee of the Council, as in
effect on the day before the date of enactment
of the Vision 100--Century of Aviation
Reauthorization Act [enacted Dec. 12, 2003],
into such committee. The committee shall be
known as the Air Traffic Services Committee (in
this subsection referred to as the
``Committee'').
[(B) Membership and qualifications.--Subject
to paragraph (6)(C), the Committee shall
consist of five members, one of whom shall be
the Administrator and shall serve as
chairperson. The remaining members shall be
appointed by the President with the advice and
consent of the Senate and--
[(i) shall have a fiduciary
responsibility to represent the public
interest;
[(ii) shall be citizens of the United
States; and
[(iii) shall be appointed without
regard to political affiliation and
solely on the basis of their
professional experience and expertise
in one or more of the following areas
and, in the aggregate, should
collectively bring to bear expertise in
all of the following areas:
[(I) Management of large
service organizations.
[(II) Customer service.
[(III) Management of large
procurements.
[(IV) Information and
communications technology.
[(V) Organizational
development.
[(VI) Labor relations.
[(C) Prohibitions on members of Committee.--
No member of the Committee may--
[(i) have a pecuniary interest in, or
own stock in or bonds of, an aviation
or aeronautical enterprise, except an
interest in a diversified mutual fund
or an interest that is exempt from the
application of section 208 of title 18;
[(ii) engage in another business
related to aviation or aeronautics; or
[(iii) be a member of any
organization that engages, as a
substantial part of its activities, in
activities to influence aviation-
related legislation.
[(D) General responsibilities.--
[(i) Oversight.--The Committee shall
oversee the administration, management,
conduct, direction, and supervision of
the air traffic control system.
[(ii) Confidentiality.--The Committee
shall ensure that appropriate
confidentiality is maintained in the
exercise of its duties.
[(E) Specific responsibilities.--The
Committee shall have the following specific
responsibilities:
[(i) Strategic plans.--To review,
approve, and monitor the strategic plan
for the air traffic control system,
including the establishment of--
[(I) a mission and
objectives;
[(II) standards of
performance relative to such
mission and objectives,
including safety, efficiency,
and productivity; and
[(III) annual and long-range
strategic plans.
[(ii) Modernization and
improvement.--To review and approve--
[(I) methods to accelerate
air traffic control
modernization and improvements
in aviation safety related to
air traffic control; and
[(II) procurements of air
traffic control equipment in
excess of $100,000,000.
[(iii) Operational plans.--To review
the operational functions of the air
traffic control system, including--
[(I) plans for modernization
of the air traffic control
system;
[(II) plans for increasing
productivity or implementing
cost-saving measures; and
[(III) plans for training and
education.
[(iv) Management.--To--
[(I) review and approve the
Administrator's appointment of
a Chief Operating Officer under
section 106(r);
[(II) review the
Administrator's selection,
evaluation, and compensation of
senior executives of the
Administration who have program
management responsibility over
significant functions of the
air traffic control system;
[(III) review and approve the
Administrator's plans for any
major reorganization of the
Administration that would
impact on the management of the
air traffic control system;
[(IV) review and approve the
Administrator's cost accounting
and financial management
structure and technologies to
help ensure efficient and cost-
effective air traffic control
operation; and
[(V) review the performance
and compensation of managers
responsible for major
acquisition projects, including
the ability of the managers to
meet schedule and budget
targets.
[(v) Budget.--To--
[(I) review and make
recommendations on the budget
request of the Administration
related to the air traffic
control system prepared by the
Administrator;
[(II) submit such budget
recommendations to the
Secretary; and
[(III) base such budget
recommendations on the annual
and long-range strategic plans.
[(F) Committee personnel matters and
expenses.--
[(i) Personnel matters.--The
Committee may appoint and terminate for
purposes of employment by the Committee
any personnel that may be necessary to
enable the Committee to perform its
duties, and may procure temporary and
intermittent services under section
40122.
[(ii) Travel expenses.--Each member
of the Committee shall receive travel
expenses, including per diem in lieu of
subsistence, in accordance with
applicable provisions under subchapter
I of chapter 57 of title 5, United
States Code.
[(G) Administrative matters.--
[(i) Powers of chair.--Except as
otherwise provided by a majority vote
of the Committee, the powers of the
chairperson shall include--
[(I) establishing committees;
[(II) setting meeting places
and times;
[(III) establishing meeting
agendas; and
[(IV) developing rules for
the conduct of business.
[(ii) Meetings.--The Committee shall
meet at least quarterly and at such
other times as the chairperson
determines appropriate.
[(iii) Quorum.--Three members of the
Committee shall constitute a quorum. A
majority of members present and voting
shall be required for the Committee to
take action.
[(H) Reports.--
[(i) Annual.--The Committee shall
each year report with respect to the
conduct of its responsibilities under
this title to the Secretary, the
Committee on Transportation and
Infrastructure of the House of
Representatives, and the Committee on
Commerce, Science, and Transportation
of the Senate.
[(ii) Additional report.--If a
determination by the Committee under
subparagraph (D)(i) that the
organization and operation of the air
traffic control system are not allowing
the Administration to carry out its
mission, the Committee shall report
such determination to the Secretary,
the Committee on Transportation and
Infrastructure of the House of
Representatives, and the Committee on
Commerce, Science, and Transportation
of the Senate.
[(iii) Action of Administrator on
report.--Not later than 60 days after
the date of a report of the Committee
under this subparagraph, the
Administrator shall take action with
respect to such report. If the
Administrator overturns a
recommendation of the Committee, the
Administrator shall report such action
to the President, the Committee on
Transportation and Infrastructure of
the House of Representatives, and the
Committee on Commerce, Science, and
Transportation of the Senate.
[(iv) Comptroller General's report.--
Not later than April 30, 2003, the
Comptroller General of the United
States shall transmit to the Committee
on Transportation and Infrastructure of
the House of Representatives and the
Committee on Commerce, Science, and
Transportation of the Senate a report
on the success of the Committee in
improving the performance of the air
traffic control system.
[(I) Authorization.--There are authorized to
be appropriated to the Committee such sums as
may be necessary for the Committee to carry out
its activities.
[(8) Air traffic control system defined.--In this
section, the term ``air traffic control system'' has
the meaning such term has under section 40102(a).]
(p) Air Traffic Control Modernization Oversight Board.--
(1) Establishment.--The Secretary shall establish an
advisory Board which shall be known as the Air Traffic
Control Modernization Oversight Board.
(2) Membership.--The Board shall be comprised of 7
members, who shall consist of--
(A) the Administrator of the Federal Aviation
Administration and a representative from the
Department of Defense;
(B) 1 member who shall have a fiduciary
responsibility to represent the public
interest; and
(C) 4 members representing aviation
interests: interests, as follows:
(i) 1 representative that is the
chief executive officer of an airport.
(ii) 1 representative that is the
chief executive officer of a passenger
or cargo air carrier.
(iii) 1 representative of a labor
organization representing employees at
the Federal Aviation Administration
that are involved with the operation,
maintenance or procurement of the air
traffic control system.
(iv) 1 representative with extensive
operational experience in the general
aviation community.
(3) Appointment and qualifications.--
(A) Members of the Board appointed under
paragraphs (2)(B) and (2)(C) shall be appointed
by the President, by and with the advice and
consent of the Senate.
(B) Members of the Board appointed under
paragraph (2)(B) shall be citizens of the
United States and shall be appointed without
regard to political affiliation and solely on
the basis of their professional experience and
expertise in one or more of the following areas
and, in the aggregate, should collectively
bring to bear expertise in--
(i) management of large service
organizations;
(ii) customer service;
(iii) management of large
procurements;
(iv) information and communications
technology;
(v) organizational development; and
(vi) labor relations.
(4) Functions.--
(A) In general.--The Board shall--
(i) review and provide advice on the
Administration's modernization
programs, budget, and cost accounting
system;
(ii) review the Administration's
strategic plan and make recommendations
on the non-safety program portions of
the plan, and provide advice on the
safety programs of the plan;
(iii) review the operational
efficiency of the air traffic control
system and make recommendations on the
operational and performance metrics for
that system;
(iv) approve capital expenditures for
a project of $100,000,000 or more
related to the system;
(v) approve by July 31 of each year
the Administrator's budget request for
facilities and equipment prior to its
submission to the Office of Management
and Budget;
(vi) approve the Federal Aviation
Administration's Capital Investment
Plan prior to its submission to the
Congress;
(vii) annually approve the
Operational Evolution Plan;
(viii) approve the Administrator's
selection of a Chief Operating Officer
for the Air Traffic Organization and on
the appointment and compensation of its
managers; and
(ix) approve the selection of the
head of the Joint Planning Development
Office.
(B) Meetings.--The Board shall meet on a
regular and periodic basis or at the call of
the Chairman or of the Administrator.
(C) Access to documents and staff.--The
Administration may give the Board appropriate
access to relevant documents and personnel of
the Administration, and the Administrator shall
make available, consistent with the authority
to withhold commercial and other proprietary
information under section 552 of title 5, cost
data associated with the acquisition and
operation of air traffic control systems. Any
member of the Board who receives commercial or
other proprietary data from the Administrator
shall be subject to the provisions of section
1905 of title 18, pertaining to unauthorized
disclosure of such information.
(5) Federal advisory committee act not to apply.--The
Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply to the Board or such rulemaking committees as
the Administrator shall designate.
(6) Administrative matters.--
(A) Terms of members.--Members of the Board
appointed under paragraph (2)(B) and (2)(C)
shall be appointed for a term of 4 years.
(B) Reappointment.--No individual may be
appointed to the Board for more than 8 years
total.
(C) Vacancy.--Any vacancy on the Board shall
be filled in the same manner as the original
position. Any member appointed to fill a
vacancy occurring before the expiration of the
term for which the member's predecessor was
appointed shall be appointed for a term of 4
years.
(D) Continuation in office.--A member of the
Board whose term expires shall continue to
serve until the date on which the member's
successor takes office.
(E) Removal.--Any member of the Board
appointed under paragraph (2)(B) or (2)(C) may
be removed by the President for cause.
(F) Claims against members of the board.--
(i) In general.--A member appointed
to the Board shall have no personal
liability under State or Federal law
with respect to any claim arising out
of or resulting from an act or omission
by such member within the scope of
service as a member of the Board.
(ii) Effect on other law.--This
subparagraph shall not be construed--
(I) to affect any other
immunity or protection that may
be available to a member of the
Board under applicable law with
respect to such transactions;
(II) to affect any other
right or remedy against the
United States under applicable
law; or
(III) to limit or alter in
any way the immunities that are
available under applicable law
for Federal officers and
employees.
(G) Ethical considerations.--Each member of
the Board appointed under paragraph (2)(B) must
certify that he or she--
(i) does not have a pecuniary
interest in, or own stock in or bonds
of, an aviation or aeronautical
enterprise, except an interest in a
diversified mutual fund or an interest
that is exempt from the application of
section 208 of title 18;
(ii) does not engage in another
business related to aviation or
aeronautics; and
(iii) is not a member of any
organization that engages, as a
substantial part of its activities, in
activities to influence aviation-
related legislation.
(H) Chairman; vice chairman.--The Board shall
elect a chair and a vice chair from among its
members, each of whom shall serve for a term of
2 years. The vice chair shall perform the
duties of the chairman in the absence of the
chairman.
(I) Compensaton.--No member shall receive any
compensation or other benefits from the Federal
Government for serving on the Board, except for
compensation benefits for injuries under
subchapter I of chapter 81 of title 5 and
except as provided under subparagraph (J).
(J) Expenses.--Each member of the Board shall
be paid actual travel expenses and per diem in
lieu of subsistence expenses when away from his
or her usual place of residence, in accordance
with section 5703 of title 5.
(K) Board resources.--From resources
otherwise available to the Administrator, the
Chairman shall appoint such staff to assist the
board and provide impartial analysis, and the
Administrator shall make available to the Board
such information and administrative services
and assistance, as may reasonably be required
to enable the Board to carry out its
responsibilities under this subsection.
(L) Quorum and voting.--A simple majority of
members of the Board shall constitute a quorum.
A majority vote of members present and voting
shall be required for the Committee to take
action.
(7) Air traffic control system defined.--In this
subsection, the term ``air traffic control system'' has
the meaning given that term in section 40102(a).
(q) Aircraft Noise Ombudsman.--
(1) Establishment.--There shall be in the
Administration an Aircraft Noise Ombudsman.
(2) General duties and responsibilities.--The
Ombudsman shall--
(A) be appointed by the Administrator;
(B) serve as a liaison with the public on
issues regarding aircraft noise; and
(C) be consulted when the Administration
proposes changes in aircraft routes so as to
minimize any increases in aircraft noise over
populated areas.
(3) Number of full-time equivalent employees.--The
appointment of an Ombudsman under this subsection shall
not result in an increase in the number of full-time
equivalent employees in the Administration.
(r) Chief Operating Officer.--
(1) In general.--
(A) Appointment.--There shall be a Chief
Operating Officer for the air traffic control
system to be appointed by the Administrator,
with the approval of the Air Traffic Services
Committee. The Chief Operating Officer shall
report directly to the Administrator and shall
be subject to the authority of the
Administrator.
(B) Qualifications.--The Chief Operating
Officer shall have a demonstrated ability in
management and knowledge of or experience in
aviation.
(C) Term.--The Chief Operating Officer shall
be appointed for a term of 5 years.
(D) Removal.--The Chief Operating Officer
shall serve at the pleasure of the
Administrator, except that the Administrator
shall make every effort to ensure stability and
continuity in the leadership of the air traffic
control system.
(E) Vacancy.--Any individual appointed to
fill a vacancy in the position of Chief
Operating Officer occurring before the
expiration of the term for which the
individual's predecessor was appointed shall be
appointed for the remainder of that term.
(2) Compensation.--
(A) In general.--The Chief Operating Officer
shall be paid at an annual rate of basic pay to
be determined by the Administrator, with the
approval of the Air Traffic Services Committee.
The annual rate may not exceed the annual
compensation paid under section 102 of title 3.
The Chief Operating Officer shall be subject to
the post-employment provisions of section 207
of title 18 as if the position of Chief
Operating Officer were described in section
207(c)(2)(A)(i) of that title.
(B) Bonus.--In addition to the annual rate of
basic pay authorized by subparagraph (A), the
Chief Operating Officer may receive a bonus for
any calendar year not to exceed 30 percent of
the annual rate of basic pay, based upon the
Administrator's evaluation of the Chief
Operating Officer's performance in relation to
the performance goals set forth in the
performance agreement described in paragraph
(3).
(3) Annual performance agreement.--The Administrator
and the Chief Operating Officer, in consultation with
the Air Traffic Services Committee, shall enter into an
annual performance agreement that sets forth measurable
organization and individual goals for the Chief
Operating Officer in key operational areas. The
agreement shall be subject to review and renegotiation
on an annual basis.
(4) Annual performance report.--The Chief Operating
Officer shall prepare and transmit to the Secretary of
Transportation, the Committee on Transportation and
Infrastructure of the House of Representatives, and the
Committee on Commerce, Science, and Transportation of
the Senate an annual management report containing such
information as may be prescribed by the Secretary.
(5) Responsibilities.--The Administrator may delegate
to the Chief Operating Officer, or any other authority
within the Administration responsibilities, including
the following:
(A) Strategic plans.--To implement the
strategic plan of the Administration for the
air traffic control system in order to
further--
(i) a mission and objectives;
(ii) standards of performance
relative to such mission and
objectives, including safety,
efficiency, and productivity;
(iii) annual and long-range strategic
plans; and
(iv) methods of the Administration to
accelerate air traffic control
modernization and improvements in
aviation safety related to air traffic
control.
(B) Operations.--To oversee the day-to-day
operational functions of the Administration for
air traffic control, including--
(i) modernization of the air traffic
control system;
(ii) increasing productivity or
implementing cost-saving measures;
(iii) training and education; and
(iv) the management of cost-
reimbursable contracts.
(C) Budget.--To--
(i) develop a budget request of the
Administration related to the air
traffic control system;
(ii) submit such budget request to
the Administrator and the Committee;
and
(iii) ensure that the budget request
supports the agency's annual and long-
range strategic plans for air traffic
control services.
SUBTITLE II. OTHER GOVERNMENT AGENCIES
CHAPTER 11. NATIONAL TRANSPORTATION SAFETY BOARD
SUBCHAPTER IV. ENFORCEMENT AND PENALTIES
Sec. 1153. Judicial review
(a) General.--The appropriate court of appeals of the United
States or the United States Court of Appeals for the District
of Columbia Circuit may review a final order of the National
Transportation Safety Board under this chapter. A person
disclosing a substantial interest in the order may apply for
review by filing a petition not later than 60 days after the
order of the Board is issued.
(b) Persons Seeking Judicial Review of Aviation Matters.--
(1) A person disclosing a substantial interest in an
order related to an aviation matter issued by the Board
under this chapter may apply for review of the order by
filing a petition for review in the United States Court
of Appeals for the District of Columbia Circuit or in
the court of appeals of the United States for the
circuit in which the person resides or has its
principal place of business. The petition must be filed
not later than 60 days after the order is issued. The
court may allow the petition to be filed after the 60
days only if there was a reasonable ground for not
filing within that 60-day period.
(2) When a petition is filed under paragraph (1) of
this subsection, the clerk of the court immediately
shall send a copy of the petition to the Board. The
Board shall file with the court a record of the
proceeding in which the order was issued.
(3) When the petition is sent to the Board, the court
has exclusive jurisdiction to affirm, amend, modify, or
set aside any part of the order and may order the Board
to conduct further proceedings. After reasonable notice
to the Board, the court may grant interim relief by
staying the order or taking other appropriate action
when cause for its action exists. Findings of fact by
the Board, if supported by substantial evidence, are
conclusive.
(4) In reviewing an order under this subsection, the
court may consider an objection to an order of the
Board only if the objection was made in the proceeding
conducted by the Board or if there was a reasonable
ground for not making the objection in the proceeding.
(5) A decision by a court under this subsection may
be reviewed only by the Supreme Court under section
1254 of title 28.
(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.
(d) Commandant Seeking Judicial Review of Maritime Matters.--
If the Commandant of the Coast Guard decides that an order of
the Board issued pursuant to a review of a Coast Guard action
under section 1133 of this title will have an adverse impact on
maritime safety or security, the Commandant may obtain judicial
review of the order under subsection (a). The Commandant, in
the official capacity of the Commandant, shall be a party to
the judicial review proceedings.
PART A--AIR COMMERCE AND SAFETY
SUBPART I--GENERAL
CHAPTER 401--GENERAL PROVISIONS
Sec. 40102. Definitions
(a) General Definitions.--In this part--
(1) ``aeronautics'' means the science and art of
flight.
(2) ``air carrier'' means a citizen of the United
States undertaking by any means, directly or
indirectly, to provide air transportation.
(3) ``air commerce'' means foreign air commerce,
interstate air commerce, the transportation of mail by
aircraft, the operation of aircraft within the limits
of a Federal airway, or the operation of aircraft that
directly affects, or may endanger safety in, foreign or
interstate air commerce.
(4) ``air navigation facility'' means a facility
used, available for use, or designed for use, in aid of
air navigation, including--
(A) a landing area;
[(B) a light;]
(B) runway lighting and airport surface
visual and other navigation aids;
(C) apparatus or equipment for distributing
[weather information, signaling, radio-
directional finding, or radio or other
electromagnetic communication;] aeronautical
and meteorological information to air traffic
control facilities or aircraft, supplying
communication, navigation or surveillance
equipment for air-to-ground or air-to-air
applications; and
(D) [another structure] any structure or
equipment or mechanism for guiding or
controlling flight in the air or the landing
and takeoff of [aircraft.] aircraft; and
(E) buildings, equipment and systems
dedicated to the National Airspace System.
(5) ``air transportation'' means foreign air
transportation, interstate air transportation, or the
transportation of mail by aircraft.
(6) ``aircraft'' means any contrivance invented,
used, or designed to navigate, or fly in, the air.
(7) ``aircraft engine'' means an engine used, or
intended to be used, to propel an aircraft, including a
part, appurtenance, and accessory of the engine, except
a propeller.
(8) ``airman'' means an individual--
(A) in command, or as pilot, mechanic, or
member of the crew, who navigates aircraft when
under way;
(B) except to the extent the Administrator of
the Federal Aviation Administration may provide
otherwise for individuals employed outside the
United States, who is directly in charge of
inspecting, maintaining, overhauling, or
repairing aircraft, aircraft engines,
propellers, or appliances; or
(C) who serves as an aircraft dispatcher or
air traffic control-tower operator.
(9) ``airport'' means a landing area used regularly
by aircraft for receiving or discharging passengers or
cargo.
(10) ``all-cargo air transportation'' means the
transportation by aircraft in interstate air
transportation of only property or only mail, or both.
(11) ``appliance'' means an instrument, equipment,
apparatus, a part, an appurtenance, or an accessory
used, capable of being used, or intended to be used, in
operating or controlling aircraft in flight, including
a parachute, communication equipment, and another
mechanism installed in or attached to aircraft during
flight, and not a part of an aircraft, aircraft engine,
or propeller.
(12) ``cargo'' means property, mail, or both.
(13) ``charter air carrier'' means an air carrier
holding a certificate of public convenience and
necessity that authorizes it to provide charter air
transportation.
(14) ``charter air transportation'' means charter
trips in air transportation authorized under this part.
(15) ``citizen of the United States'' means--
(A) an individual who is a citizen of the
United States;
(B) a partnership each of whose partners is
an individual who is a citizen of the United
States; or
(C) a corporation or association organized
under the laws of the United States or a State,
the District of Columbia, or a territory or
possession of the United States, of which the
president and at least two-thirds of the board
of directors and other managing officers are
citizens of the United States, which is under
the actual control of citizens of the United
States, and in which at least 75 percent of the
voting interest is owned or controlled by
persons that are citizens of the United States.
(16) ``civil aircraft'' means an aircraft except a
public aircraft.
(17) ``civil aircraft of the United States'' means an
aircraft registered under chapter 441 of this title.
(18) ``conditional sales contract'' means a
contract--
(A) for the sale of an aircraft, aircraft
engine, propeller, appliance, or spare part,
under which the buyer takes possession of the
property but title to the property vests in the
buyer at a later time on--
(i) paying any part of the purchase
price;
(ii) performing another condition; or
(iii) the happening of a contingency;
or
(B) to bail or lease an aircraft, aircraft
engine, propeller, appliance, or spare part,
under which the bailee or lessee--
(i) agrees to pay an amount
substantially equal to the value of the
property; and
(ii) is to become, or has the option
of becoming, the owner of the property
on complying with the contract.
(19) ``conveyance'' means an instrument, including a
conditional sales contract, affecting title to, or an
interest in, property.
(20) ``Federal airway'' means a part of the navigable
airspace that the Administrator designates as a Federal
airway.
(21) ``foreign air carrier'' means a person, not a
citizen of the United States, undertaking by any means,
directly or indirectly, to provide foreign air
transportation.
(22) ``foreign air commerce'' means the
transportation of passengers or property by aircraft
for compensation, the transportation of mail by
aircraft, or the operation of aircraft in furthering a
business or vocation, between a place in the United
States and a place outside the United States when any
part of the transportation or operation is by aircraft.
(23) ``foreign air transportation'' means the
transportation of passengers or property by aircraft as
a common carrier for compensation, or the
transportation of mail by aircraft, between a place in
the United States and a place outside the United States
when any part of the transportation is by aircraft.
(24) ``interstate air commerce'' means the
transportation of passengers or property by aircraft
for compensation, the transportation of mail by
aircraft, or the operation of aircraft in furthering a
business or vocation--
(A) between a place in--
(i) a State, territory, or possession
of the United States and a place in the
District of Columbia or another State,
territory, or possession of the United
States;
(ii) a State and another place in the
same State through the airspace over a
place outside the State;
(iii) the District of Columbia and
another place in the District of
Columbia; or
(iv) a territory or possession of the
United States and another place in the
same territory or possession; and
(B) when any part of the transportation or
operation is by aircraft.
(25) ``interstate air transportation'' means the
transportation of passengers or property by aircraft as
a common carrier for compensation, or the
transportation of mail by aircraft--
(A) between a place in--
(i) a State, territory, or possession
of the United States and a place in the
District of Columbia or another State,
territory, or possession of the United
States;
(ii) Hawaii and another place in
Hawaii through the airspace over a
place outside Hawaii;
(iii) the District of Columbia and
another place in the District of
Columbia; or
(iv) a territory or possession of the
United States and another place in the
same territory or possession; and
(B) when any part of the transportation is by
aircraft.
(26) ``intrastate air carrier'' means a citizen of
the United States undertaking by any means to provide
only intrastate air transportation.
(27) ``intrastate air transportation'' means the
transportation by a common carrier of passengers or
property for compensation, entirely in the same State,
by turbojet-powered aircraft capable of carrying at
least 30 passengers.
(28) ``landing area'' means a place on land or water,
including an airport or intermediate landing field,
used, or intended to be used, for the takeoff and
landing of aircraft, even when facilities are not
provided for sheltering, servicing, or repairing
aircraft, or for receiving or discharging passengers or
cargo.
(29) ``large hub airport'' means a commercial service
airport (as defined in section 47102) that has at least
1.0 percent of the passenger boardings.
(30) ``mail'' means United States mail and foreign
transit mail.
(31) ``medium hub airport'' means a commercial
service airport (as defined in section 47102) that has
at least 0.25 percent but less than 1.0 percent of the
passenger boardings.
(32) ``navigable airspace'' means airspace above the
minimum altitudes of flight prescribed by regulations
under this subpart and subpart III of this part,
including airspace needed to ensure safety in the
takeoff and landing of aircraft.
(33) ``navigate aircraft'' and ``navigation of
aircraft'' include piloting aircraft.
(34) ``nonhub airport'' means a commercial service
airport (as defined in section 47102) that has less
than 0.05 percent of the passenger boardings.
(35) ``operate aircraft'' and ``operation of
aircraft'' mean using aircraft for the purposes of air
navigation, including--
(A) the navigation of aircraft; and
(B) causing or authorizing the operation of
aircraft with or without the right of legal
control of the aircraft.
(36) ``passenger boardings''--
(A) means, unless the context indicates
otherwise, revenue passenger boardings in the
United States in the prior calendar year on an
aircraft in service in air commerce, as the
Secretary determines under regulations the
Secretary prescribes; and
(B) includes passengers who continue on an
aircraft in international flight that stops at
an airport in the 48 contiguous States, Alaska,
or Hawaii for a nontraffic purpose.
(37) ``person'', in addition to its meaning under
section 1 of title 1, includes a governmental authority
and a trustee, receiver, assignee, and other similar
representative.
(38) ``predatory'' means a practice that violates the
antitrust laws as defined in the first section of the
Clayton Act (15 U.S.C. 12).
(39) ``price'' means a rate, fare, or charge.
(40) ``propeller'' includes a part, appurtenance, and
accessory of a propeller.
(41) ``public aircraft'' means any of the following:
(A) Except with respect to an aircraft
described in subparagraph (E), an aircraft used
only for the United States Government, except
as provided in section 40125(b).
(B) An aircraft owned by the Government and
operated by any person for purposes related to
crew training, equipment development, or
demonstration, except as provided in section
40125(b).
(C) An aircraft owned and operated by the
government of a State, the District of
Columbia, or a territory or possession of the
United States or a political subdivision of one
of these governments, except as provided in
section 40125(b).
(D) An aircraft exclusively leased for at
least 90 continuous days by the government of a
State, the District of Columbia, or a territory
or possession of the United States or a
political subdivision of one of these
governments, except as provided in section
40125(b).
(E) An aircraft owned or operated by the
armed forces or chartered to provide
transportation to the armed forces under the
conditions specified by section 40125(c).
(42) ``small hub airport'' means a commercial service airport
(as defined in section 47102) that has at least 0.05 percent
but less than 0.25 percent of the passenger boardings.
(43) ``spare part'' means an accessory, appurtenance,
or part of an aircraft (except an aircraft engine or
propeller), aircraft engine (except a propeller),
propeller, or appliance, that is to be installed at a
later time in an aircraft, aircraft engine, propeller,
or appliance.
(44) ``State authority'' means an authority of a
State designated under State law--
(A) to receive notice required to be given a
State authority under subpart II of this part;
or
(B) as the representative of the State before
the Secretary of Transportation in any matter
about which the Secretary is required to
consult with or consider the views of a State
authority under subpart II of this part.
(45) ``ticket agent'' means a person (except an air
carrier, a foreign air carrier, or an employee of an
air carrier or foreign air carrier) that as a principal
or agent sells, offers for sale, negotiates for, or
holds itself out as selling, providing, or arranging
for, air transportation.
(46) ``United States'' means the States of the United
States, the District of Columbia, and the territories
and possessions of the United States, including the
territorial sea and the overlying airspace.
(47) ``air traffic control system'' means the
combination of elements used to safely and efficiently
monitor, direct, control, and guide aircraft in the
United States and United States-assigned airspace,
including--
(A) allocated electromagnetic spectrum and
physical, real, personal, and intellectual
property assets making up facilities,
equipment, and systems employed to detect,
track, and guide aircraft movement;
(B) laws, regulations, orders, directives,
agreements, and licenses;
(C) published procedures that explain
required actions, activities, and techniques
used to ensure adequate aircraft separation;
and
(D) trained personnel with specific technical
capabilities to satisfy the operational,
engineering, management, and planning
requirements for air traffic control.
(b) Limited Definition.--In subpart II of this part,
``control'' means control by any means.
* * * * * * *
Sec. 40110. General procurement authority
(a) General.--In carrying out this part, the Administrator of
the Federal Aviation Administration--
(1) to the extent that amounts are available for
obligation, may acquire services or, by condemnation or
otherwise, an interest in property, including an
interest in airspace immediately adjacent to and needed
for airports and other air navigation facilities owned
by the United States Government and operated by the
Administrator;
(2) may dispose of an interest in property for
adequate [compensation; and] compensation, and the
amount received may be credited to the appropriation
current when the amount is received; and
(3) may construct and improve laboratories and other
test facilities.
(b) Purchase of Housing Units.--
(1) Authority.--In carrying out this part, the
Administrator may purchase a housing unit (including a
condominium or a housing unit in a building owned by a
cooperative) that is located outside the contiguous
United States if the cost of the unit is $300,000 or
less.
(2) Adjustments for inflation.--For fiscal years
beginning after September 30, 1997, the Administrator
may adjust the dollar amount specified in paragraph (1)
to take into account increases in local housing costs.
(3) Continuing obligations.--Notwithstanding section
1341 of title 31, the Administrator may purchase a
housing unit under paragraph (1) even if there is an
obligation thereafter to pay necessary and reasonable
fees duly assessed upon such unit, including fees
related to operation, maintenance, taxes, and
insurance.
(4) Certification to congress.--The Administrator may
purchase a housing unit under paragraph (1) only if, at
least 30 days before completing the purchase, the
Administrator transmits to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science,
and Transportation of the Senate a report containing--
(A) a description of the housing unit and its
price;
(B) a certification that the price does not
exceed the median price of housing units in the
area; and
(C) a certification that purchasing the
housing unit is the most cost-beneficial means
of providing necessary accommodations in
carrying out this part.
(5) Payment of fees.--The Administrator may pay, when
due, fees resulting from the purchase of a housing unit
under this subsection from any amounts made available
to the Administrator.
(c) Duties and Powers.--When carrying out subsection (a) of
this section, the Administrator of the Federal Aviation
Administration may--
(1) notwithstanding section 1341(a)(1) of title 31,
lease an interest in property for not more than 20
years;
(2) consider the reasonable probable future use of
the underlying land in making an award for a
condemnation of an interest in airspace;
(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.
(d) Acquisition Management System.--
(1) In general.--In consultation with such non-
governmental experts in acquisition management systems
as the Administrator may employ, and notwithstanding
provisions of Federal acquisition law, the
Administrator shall develop and implement an
acquisition management system for the Administration
that addresses the unique needs of the agency and, at a
minimum, provides for--
(A) more timely and cost-effective
acquisitions of equipment, services, property,
and materials; and
(B) the resolution of bid protests and
contract disputes related thereto, using
consensual alternative dispute resolution
techniques to the maximum extent practicable.
(2) Applicability of federal acquisition law.--The
following provisions of Federal acquisition law shall
not apply to the new acquisition management system
developed and implemented pursuant to paragraph (1):
(A) Title III of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C.
252-266).
(B) The Office of Federal Procurement Policy
Act (41 U.S.C. 401 et seq.).
(C) The Federal Acquisition Streamlining Act
of 1994 (Public Law 103-355), except for
section 315 (41 U.S.C. 265). For the purpose of
applying section 315 of that Act to the system,
the term ``executive agency'' is deemed to
refer to the Federal Aviation Administration.
(D) The Small Business Act (15 U.S.C. 631 et
seq.), except that all reasonable opportunities
to be awarded contracts shall be provided to
small business concerns and small business
concerns owned and controlled by socially and
economically disadvantaged individuals.
(E) The Competition in Contracting Act.
(F) Subchapter V of chapter 35 of title 31,
relating to the procurement protest system.
(G) The Federal Acquisition Regulation and
any laws not listed in subparagraphs (A)
through (F) providing authority to promulgate
regulations in the Federal Acquisition
Regulation.
(3) Certain provisions of the office of federal
procurement policy act.--Notwithstanding paragraph
(2)(B), section 27 of the Office of Federal Procurement
Policy Act (41 U.S.C. 423) shall apply to the new
acquisition management system developed and implemented
under paragraph (1) with the following modifications:
(A) Subsections (f) and (g) shall not apply.
(B) Within 90 days after the date of the
enactment of the Wendell H. Ford Aviation
Investment and Reform Act for the 21st Century,
the Administrator shall adopt definitions for
the acquisition management system that are
consistent with the purpose and intent of the
Office of Federal Procurement Policy Act.
(C) After the adoption of those definitions,
the criminal, civil, and administrative
remedies provided under the Office of Federal
Procurement Policy Act apply to the acquisition
management system.
(D) In the administration of the acquisition
management system, the Administrator may take
adverse personnel action under section
27(e)(3)(A)(iv) of the Office of Federal
Procurement Policy Act in accordance with the
procedures contained in the Administration's
personnel management system.
(4) Adjudication of certain bid protests and contract
disputes.---A bid protest or contract dispute that is
not addressed or resolved through alternative dispute
resolution shall be adjudicated by the Administrator
through Dispute Resolution Officers or Special Masters
of the Federal Aviation Administration Office of
Dispute Resolution for Acquisition, acting pursuant to
sections 46102, 46104, 46105, 46106 and 46107 and shall
be subject to judicial review under section 46110 and
to section 504 of title 5.
(e) Prohibition on Release of Offeror Proposals.--
(1) General rule.--Except as provided in paragraph
(2), a proposal in the possession or control of the
Administrator may not be made available to any person
under section 552 of title 5.
(2) Exception.--Paragraph (1) shall not apply to any
portion of a proposal of an offeror the disclosure of
which is authorized by the Administrator pursuant to
procedures published in the Federal Register. The
Administrator shall provide an opportunity for public
comment on the procedures for a period of not less than
30 days beginning on the date of such publication in
order to receive and consider the views of all
interested parties on the procedures. The procedures
shall not take effect before the 60th day following the
date of such publication.
(3) Proposal defined.--In this subsection, the term
``proposal'' means information contained in or
originating from any proposal, including a technical,
management, or cost proposal, submitted by an offeror
in response to the requirements of a solicitation for a
competitive proposal.
* * * * * * *
Sec. 40113. Administrative
(a) General Authority.--The Secretary of Transportation (or
the Under Secretary of Transportation for Security with respect
to security duties and powers designated to be carried out by
the Under Secretary or the Administrator of the Federal
Aviation Administration with respect to aviation safety duties
and powers designated to be carried out by the Administrator)
may take action the Secretary, Under Secretary, or
Administrator, as appropriate, considers necessary to carry out
this part, including conducting investigations, prescribing
regulations, standards, and procedures, and issuing orders.
(b) Hazardous Material.--In carrying out this part, the
Secretary has the same authority to regulate the transportation
of hazardous material by air that the Secretary has under
section 5103 of this title. However, this subsection does not
prohibit or regulate the transportation of a firearm (as
defined in section 232 of title 18) or ammunition for a
firearm, when transported by an individual for personal use.
(c) Governmental Assistance.--The Secretary (or the
Administrator of the Federal Aviation Administration with
respect to aviation safety duties and powers designated to be
carried out by the Administrator) may use the assistance of the
Administrator of the National Aeronautics and Space
Administration and any research or technical department,
agency, or instrumentality of the United States Government on
matters related to aircraft fuel and oil, and to the design,
material, workmanship, construction, performance, maintenance,
and operation of aircraft, aircraft engines, propellers,
appliances, and air navigation facilities. Each department,
agency, and instrumentality may conduct scientific and
technical research, investigations, and tests necessary to
assist the Secretary or Administrator of the Federal Aviation
Administration in carrying out this part. This part does not
authorize duplicating laboratory research activities of a
department, agency, or instrumentality.
(d) Indemnification.--The Under Secretary of Transportation
for Security or the Administrator of the Federal Aviation
Administration may indemnify an officer or employee of the
Transportation Security Administration or Federal Aviation
Administration, as the case may be, against a claim or judgment
arising out of an act that the Under Secretary or
Administrator, as the case may be, decides was committed within
the scope of the official duties of the officer or employee.
(e) Assistance to Foreign Aviation Authorities.--
(1) Safety-related training and operational
services.--The Administrator may provide safety-related
training and operational services to foreign aviation
authorities (whether public or private) with or without
reimbursement, if the Administrator determines that
providing such services promotes aviation [safety.]
safety or efficiency. The Administrator is authorized
to participate in, and submit offers in response to,
competitions to provide these services, and to contract
with foreign aviation authorities to provide these
services consistent with the provisions under section
106(l)(6) of this title. The Administrator is also
authorized, notwithstanding any other provision of law
or policy, to accept payments in arrears. To the extent
practicable, air travel reimbursed under this
subsection shall be conducted on United States air
carriers.
(2) Reimbursement sought.--The Administrator shall
actively seek reimbursement for services provided under
this subsection from foreign aviation authorities
capable of providing such reimbursement.
(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.]
appropriation current when the expenditures are or were
paid, or the appropriation current when the amount is
received.
(4) Reporting.--Not later than December 31, 1995, and
annually thereafter, the Administrator shall transmit
to Congress a list of the foreign aviation authorities
to which the Administrator provided services under this
subsection in the preceding fiscal year. Such list
shall specify the dollar value of such services and any
reimbursement received for such services.
(f) Application of Certain Regulations to Alaska.--In
amending title 14, Code of Federal Regulations, in a manner
affecting intrastate aviation in Alaska, the Administrator of
the Federal Aviation Administration shall consider the extent
to which Alaska is not served by transportation modes other
than aviation, and shall establish such regulatory distinctions
as the Administrator considers appropriate.
* * * * * * *
[Sec. 40117. Passenger facility fees]
Sec. 40117. Passenger facility charges
(a) Definitions.--In this section, the following definitions
apply:
(1) Airport, commercial service airport, and public
agency.--The terms ``airport'', ``commercial service
airport'', and ``public agency'' have the meaning those
terms have under section 47102.
(2) Eligible agency.--The term ``eligible agency''
means a public agency that controls a commercial
service airport.
(3) Eligible airport-related project.--The term
``eligible airport-related project'' means any of the
following projects:
(A) A project for airport development or
airport planning under subchapter I of chapter
471.
(B) A project for terminal development
described in section 47110(d).
(C) A project for costs of terminal
development referred to in subparagraph (B)
incurred after August 1, 1986, at an airport
that did not have more than .25 percent of the
total annual passenger boardings in the United
States in the most recent calendar year for
which data is available and at which total
passenger boardings declined by at least 16
percent between calendar year 1989 and calendar
year 1997.
(D) A project for airport noise capability
planning under section 47505.
(E) A project to carry out noise
compatibility measures eligible for assistance
under section 47504, whether or not a program
for those measures has been approved under
section 47504.
(F) A project for constructing gates and
related areas at which passengers board or exit
aircraft. In the case of a project required to
enable additional air service by an air carrier
with less than 50 percent of the annual
passenger boardings at an airport, the project
for constructing gates and related areas may
include structural foundations and floor
systems, exterior building walls and load-
bearing interior columns or walls, windows,
door and roof systems, building utilities
(including heating, air conditioning,
ventilation, plumbing, and electrical service),
and aircraft fueling facilities adjacent to the
gate.
(G) A project for converting vehicles and
ground support equipment used at a commercial
service airport to low-emission technology (as
defined in section 47102) or to use cleaner
burning conventional fuels, retrofitting of any
such vehicles or equipment that are powered by
a diesel or gasoline engine with emission
control technologies certified or verified by
the Environmental Protection Agency to reduce
emissions, or acquiring for use at a commercial
service airport vehicles and ground support
equipment that include low-emission technology
or use cleaner burning fuels if the airport is
located in an air quality nonattainment area
(as defined in section 171(2) of the Clean Air
Act (42 U.S.C. 7501(2))) or a maintenance area
referred to in section 175A of such Act (42
U.S.C. 7505a) and if such project will result
in an airport receiving appropriate emission
credits as described in section 47139.
(H) A project for comprehensive planning and
redevelopment activities for properties
acquired under section 47504, including master
plans, traffic studies, environmental
evaluation, economic and feasibility studies,
rezoning and re-platting efforts, utility
upgrades and site preparation in cooperation
with neighboring local jurisdictions
undertaking community redevelopment in the
area.
(4) Ground support equipment.--The term ``ground
support equipment'' means service and maintenance
equipment used at an airport to support aeronautical
operations and related activities.
(5) Passenger facility [fee] charge.--The term
``passenger facility [fee] charge'' means a [fee]
charge 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 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) in the case of an airport that has more than .25
percent of the total number of annual boardings in the
United States, that the project will make a significant
contribution to improving air safety and security,
increasing competition among air carriers, reducing
current or anticipated congestion, or reducing the
impact of aviation noise on people living near the
airport; and
(B) that the project cannot be paid for from funds
reasonably expected to be available for the programs
referred to in section 48103.
(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 1 of the settlement agreements effective
February 16, 2005, between the airport and each
of the school districts;
(iv) in the case of a project to replace a
relocatable building with a permanent building,
the eligible project costs are limited to the
actual structural construction costs necessary
to mitigate aircraft noise in instructional
classrooms to an interior noise level meeting
current standards of the Federal Aviation
Administration; and
(v) the project otherwise meets the
requirements of this section for authorization
of a passenger facility charge.
(B) Eligible project costs.--In subparagraph (A)(iv),
the term `eligible project costs' means the difference
between the cost of standard school construction and
the cost of construction necessary to mitigate
classroom noise to the standards of the Federal
Aviation Administration.
[(c) Applications.--(1) An eligible agency must submit to the
Secretary an application for authority to impose a passenger
facility fee. 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 and the date and location of a
meeting to present the projects to air carriers and
foreign air carriers operating at the airport.
[(B) Not later than 30 days after written notice is
provided under subparagraph (A) of this paragraph, each
air carrier and foreign air carrier operating at the
airport must provide to the agency written notice of
receipt of the notice. Failure of a carrier to provide
the notice may be deemed certification of agreement
with the project by the carrier under subparagraph (D)
of this paragraph.
[(C) Not later than 45 days after written notice is
provided under subparagraph (A) of this paragraph, the
agency must conduct a meeting to provide air carriers
and foreign air carriers with descriptions of projects
and justifications and a detailed financial plan for
projects.
[(D) Not later than 30 days after the meeting, each
air carrier and foreign air carrier must provide to the
agency certification of agreement or disagreement with
projects (or total plan for the projects). Failure to
provide the certification is deemed certification of
agreement with the project by the carrier. A
certification of disagreement is void if it does not
contain the reasons for the disagreement.
[(E) The agency must include in its application or
notice submitted under subparagraph (A) copies of all
certifications of agreement or disagreement received
under subparagraph (D).
[(F) For the purpose of this section, an eligible
agency providing notice and an opportunity for
consultation to an air carrier or foreign air carrier
is deemed to have satisfied the requirements of this
paragraph if the eligible agency limits such notices
and consultations to air carriers and foreign air
carriers that have a significant business interest at
the airport. In the subparagraph, the term
``significant business interest'' means an air carrier
or foreign air carrier that had no less than 1.0
percent of passenger boardings at the airport in the
prior calendar year, had at least 25,000 passenger
boardings at the airport in the prior calendar year, or
provides scheduled service 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 so as to inform those interested persons and
agencies that may be affected. The public notice may
include--
[(i) publication in local newspapers of
general circulation;
[(ii) publication in other local media; and
[(iii) posting the notice on the agency's
Internet website.
[(B) A requirement for submission of public comments
no sooner than 30 days, and no later than 45 days,
after the date of the publication of the notice.
[(C) A requirement that the agency include in its
application or notice submitted under subparagraph (A)
copies of all comments received under subparagraph (B).
[(4) After receiving an application, the Secretary may
provide notice and an opportunity to air carriers, foreign air
carriers, and other interested persons to comment on the
application. The Secretary shall make a final decision on the
application not later than 120 days after receiving it.]
(c) Procedural Requirements for Imposition of Passenger
Facility Charge.--
(1) In general.--An eligible agency must submit to
those air carriers and foreign air carriers operating
at the airport with a significant business interest, as
defined in paragraph (3), and to the Secretary and make
available to the public annually a report, in the form
required by the Secretary, on the status of the
eligible agency's passenger facility charge program,
including--
(A) the total amount of program revenue held
by the agency at the beginning of the 12 months
covered by the report;
(B) the total amount of program revenue
collected by the agency during the period
covered by the report;
(C) the amount of expenditures with program
revenue made by the agency on each eligible
airport-related project during the period
covered by the report;
(D) each airport-related project for which
the agency plans to collect and use program
revenue during the next 12-month period covered
by the report, including the amount of revenue
projected to be used for such project;
(E) the level of program revenue the agency
plans to collect during the next 12-month
period covered by the report;
(F) a description of the notice and
consultation process with air carriers and
foreign air carriers under paragraph (3), and
with the public under paragraph (4), including
a copy of any adverse comments received and how
the agency responded; and
(G) any other information on the program that
the Secretary may require.
(2) Implementation.--Subject to the requirements of
paragraphs (3), (4), (5), and (6), the eligible agency
may implement the planned collection and use of
passenger facility charges in accordance with its
report upon filing the report as required in paragraph
(1).
(3) Consultation with carriers for new projects.--
(A) An eligible agency proposing to collect
or use passenger facility charge revenue for a
project not previously approved by the
Secretary or not included in a report required
by paragraph (1) that was submitted in a prior
year shall provide to air carriers and foreign
air carriers operating at the airport
reasonable notice, and an opportunity to
comment on the planned collection and use of
program revenue before providing the report
required under paragraph (1). The Secretary
shall prescribe by regulation what constitutes
reasonable notice under this paragraph, which
shall at a minimum include--
(i) that the eligible agency provide
to air carriers and foreign air
carriers operating at the airport
written notice of the planned
collection and use of passenger
facility charge revenue;
(ii) that the notice include a full
description and justification for a
proposed project;
(iii) that the notice include a
detailed financial plan for the
proposed project; and
(iv) that the notice include the
proposed level for the passenger
facility charge.
(B) An eligible agency providing notice and
an opportunity for comment shall be deemed to
have satisfied the requirements of this
paragraph if the eligible agency provides such
notice to air carriers and foreign air carriers
that have a significant business interest at
the airport. For purposes of this subparagraph,
the term `significant business interest' means
an air carrier or foreign air carrier that--
(i) had not less than 1.0 percent of
passenger boardings at the airport in
the prior calendar year;
(ii) had at least 25,000 passenger
boardings at the airport in the prior
calendar year; or
(iii) provides scheduled service at
the airport.
(C) Not later than 45 days after written
notice is provided under subparagraph (A), each
air carrier and foreign air carrier may provide
written comments to the eligible agency
indicating its agreement or disagreement with
the project or, if applicable, the proposed
level for a passenger facility charge.
(D) The eligible agency may include, as part
of the notice and comment process, a
consultation meeting to discuss the proposed
project or, if applicable, the proposed level
for a passenger facility charge. If the agency
provides a consultation meeting, the written
comments specified in subparagraph (C) shall be
due not later than 30 days after the meeting.
(4) Public notice and comment.--
(A) An eligible agency proposing to collect
or use passenger facility charge revenue for a
project not previously approved by the
Secretary or not included in a report required
by paragraph (1) that was filed in a prior year
shall provide reasonable notice and an
opportunity for public comment on the planned
collection and use of program revenue before
providing the report required in paragraph (1).
(B) The Secretary shall prescribe by
regulation what constitutes reasonable notice
under this paragraph, which shall at a minimum
require--
(i) that the eligible agency provide
public notice of intent to collect a
passenger facility charge so as to
inform those interested persons and
agencies that may be affected;
(ii) appropriate methods of
publication, which may include notice
in local newspapers of general
circulation or other local media, or
posting of the notice on the agency's
Internet website; and
(iii) submission of public comments
no later than 45 days after the date of
the publication of the notice.
(5) Objections.--
(A) Any interested person may file with the
Secretary a written objection to a proposed
project included in a notice under this
paragraph provided that the filing is made
within 30 days after submission of the report
specified in paragraph (1).
(B) The Secretary shall provide not less than
30 days for the eligible agency to respond to
any filed objection.
(C) Not later than 90 days after receiving
the eligible agency's response to a filed
objection, the Secretary shall make a
determination whether or not to terminate
authority to collect the passenger facility
charge for the project, based on the filed
objection. The Secretary shall state the
reasons for any determination. The Secretary
may only terminate authority if--
(i) the project is not an eligible
airport related project;
(ii) the eligible agency has not
complied with the requirements of this
section or the Secretary's implementing
regulations in proposing the project;
(iii) the eligible agency has been
found to be in violation of section
47107(b) of this title and has failed
to take corrective action, prior to the
filing of the objection; or
(iv) in the case of a proposed
increase in the passenger facility
charge level, the level is not
authorized by this section.
(D) Upon issuance of a decision terminating
authority, the public agency shall prepare an
accounting of passenger facility revenue
collected under the terminated authority and
restore the funds for use on other authorized
projects.
(E) Except as provided in subparagraph (C),
the eligible agency may implement the planned
collection and use of a passenger facility
charge in accordance with its report upon
filing the report as specified in paragraph
(1)(A).
(6) Approval requirement for increased passenger
facility charge or intermodal ground access project.--
(A) An eligible agency may not collect or use
a passenger facility charge to finance an
intermodal ground access project, or increase a
passenger facility charge, unless the project
is first approved by the Secretary in
accordance with this paragraph.
(B) The eligible agency may submit to the
Secretary an application for authority to
impose a passenger facility charge for an
intermodal ground access project or to increase
a passenger facility charge. The application
shall contain information and be in the form
that the Secretary may require by regulation
but, at a minimum, must include copies of any
comments received by the agency during the
comment period described by subparagraph (C).
(C) Before submitting an application under
this paragraph, an eligible agency must provide
air carriers and foreign air carriers operating
at the airport, and the public, reasonable
notice of and an opportunity to comment on a
proposed intermodal ground access project or
the increased passenger facility charge. Such
notice and opportunity to comment shall conform
to the requirements of paragraphs (3) and (4).
(D) After receiving an application, the
Secretary may provide air carriers, foreign air
carriers and other interested persons notice
and an opportunity to comment on the
application. The Secretary shall make a final
decision on the application not later than 120
days after receiving it.
(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]
subsection (c)(6) of this section to finance an intermodal
ground access 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;
[(2) each project is an eligible airport-related
project that will--
[(A) preserve or enhance capacity, safety, or
security of the national air transportation
system;
[(B) reduce noise resulting from an airport
that is part of the system; or
[(C) provide an opportunity for enhanced
competition between or among air carriers and
foreign air carriers;]
(2) the project is an eligible airport-related
project; and
(3) the application includes adequate justification
for [each of the specific projects; and] the 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 only--
[(A) if the Secretary approves an application that
the agency has submitted under subsection (c) of this
section; and
[(B) subject to terms the Secretary may prescribe to
carry out the objectives of this section.] (1) An
eligible agency may impose a passenger facility charge
only subject to terms the Secretary may prescribe to
carry out the objectives of this section.
(2) A passenger facility [fee] charge may not be collected
from a passenger--
(A) for more than 2 boardings on a one-way trip or a
trip in each direction of a round trip;
(B) for the boarding to an eligible place under
subchapter II of chapter 417 of this title for which
essential air service compensation is paid under
subchapter II;
(C) enplaning at an airport if the passenger did not
pay for the air transportation which resulted in such
enplanement, including any case in which the passenger
obtained the ticket for the air transportation with a
frequent flier award coupon without monetary payment;
(D) on flights, including flight segments, between 2
or more points in Hawaii;
(E) in Alaska aboard an aircraft having a seating
capacity of less than 60 passengers; and
(F) enplaning at an airport if the passenger did not
pay for the air transportation which resulted in such
enplanement due to charter arrangements and payment by
the Department of Defense.
(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) Passenger facility revenue is
not airport revenue for purposes of establishing a price under
a contract between an eligible agency and an air carrier or
foreign air carrier.
(2) An eligible agency may not include in its price base the
part of the capital costs of a project paid for by using
passenger facility revenue to establish a price under a
contract between the agency and an air carrier or foreign air
carrier.
(3) For a project for terminal development, gates and related
areas, or a facility occupied or used by at least one air
carrier or foreign air carrier on an exclusive or preferential
basis, a price payable by an air carrier or foreign air carrier
using the facilities must at least equal the price paid by an
air carrier or foreign air carrier using a similar facility at
the airport that was not financed with passenger facility
revenue.
(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]
charge 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, on complaint of an interested person
or on the Secretary's own initiative, conduct an investigation
into an eligible agency's collection and use of passenger
facility charge revenue to determine whether a passenger
facility charge is excessive or that passenger facility revenue
is not being used as provided in this section. The Secretary
shall prescribe regulations establishing procedures for
complaints and investigations. The regulations may provide for
the issuance of a final agency decision without resort to an
oral evidentiary hearing. The Secretary shall not accept
complaints filed under this paragraph until after the issuance
of regulations establishing complaint procedures.
[(3)] (4) 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
(B) passengers enplaned on a flight to an
airport--
(i) that has fewer than 2,500
passenger boardings each year and
receives scheduled passenger service;
or
(ii) in a community which has a
population of less than 10,000 and is
not connected by a land highway or
vehicular way to the land-connected
National Highway System within a State.
(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.
(2) Secretary shall ensure implementation and
compliance.--The Secretary shall review any plan
submitted under paragraph (1) to ensure that it meets
the requirements of this section, and shall review its
implementation from time-to-time to ensure that each
covered airport successfully implements its plan.
(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.
(2) Notice and opportunity for consultation.--The
eligible agency must provide reasonable notice and an
opportunity for consultation to air carriers and
foreign air carriers in accordance with subsection
[(c)(2)] (c)(3) and must provide reasonable notice and
opportunity for public comment in accordance with
subsection (c)(3).
(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.
(6) Regulations.--Not later than 180 days after the
date of enactment of this subsection, the Secretary
shall propose such regulations as may be necessary to
carry out 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.] date of issuance of regulations to carry
out subsection (c) of this section, as amended by the
Aviation Investment and Modernization Act of 2007.
(8) 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.
(2) Trust fund status.--If a covered air carrier or
its agent fails to segregate passenger facility revenue
in violation of the subsection, the trust fund status
of such revenue shall not be defeated by an inability
of any party to identify and trace the precise funds in
the accounts of the air carrier.
(3) Prohibition.--A covered air carrier and its
agents may not grant to any third party any security or
other interest in passenger facility revenue.
(4) Compensation to eligible entities.--A covered air
carrier that fails to comply with any requirement of
this subsection, or otherwise unnecessarily causes an
eligible entity to expend funds, through litigation or
otherwise, to recover or retain payment of passenger
facility revenue to which the eligible entity is
otherwise entitled shall be required to compensate the
eligible agency for the costs so incurred.
(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.
(7) Covered air carrier defined.--In this section,
the term ``covered air carrier'' means an air carrier
that files for chapter 7 or chapter 11 of title 11
bankruptcy protection, or has an involuntary chapter 7
of title 11 bankruptcy proceeding commenced against it,
after the date of enactment of this subsection.
(n) Alternative Passenger Facility Charge Collection Pilot
Program.--
(1) In general.--The Secretary shall establish and
conduct a pilot program at not more than 6 airports
under which an eligible agency may impose a passenger
facility charge under this section without regard to
the dollar amount limitations set forth in paragraph
(1) or (4) of subsection (b) if the participating
eligible agency meets the requirements of paragraph
(2).
(2) Collection requirements.--
(A) Direct collection.--An eligible agency
participating in the pilot program--
(i) may collect the charge from the
passenger at the facility, via the
Internet, or in any other reasonable
manner; but
(ii) may not require or permit the
charge to be collected by an air
carrier or foreign air carrier for the
flight segment.
(B) PFC collection requirement not to
apply.--Subpart C of part 158 of title 14, Code
of Federal Regulations, does not apply to the
collection of the passenger facility charge
imposed by an eligible agency participating in
the pilot program.
* * * * * * *
Sec. 40122. Federal Aviation Administration personnel management system
(a) In General.--
(1) Consultation and negotiation.--In developing and
making changes to the personnel management system
initially implemented by the Administrator of the
Federal Aviation Administration on April 1, 1996, the
Administrator shall negotiate with the exclusive
bargaining representatives of employees of the
Administration certified under section 7111 of title 5
and consult with other employees of the Administration.
[(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
subsection (g)(2)(C) with the exclusive
bargaining representatives, the services of the
Federal Mediation and Conciliation Service
shall be used to attempt to reach such
agreement in accordance with part 1425 of title
29, Code of Federal Regulations. The
Administrator and bargaining representatives
may by mutual agreement adopt procedures for
the resolution of disputes or impasses arising
in the negotiation of a collective-bargaining
agreement.
(B) Binding arbitration.--If the services of
the Federal Mediation and Conciliation Service
under subparagraph (A) does not lead to an
agreement, the Administrator and the bargaining
representatives shall submit their issues in
controversy to the Federal Service Impasses
Panel in accordance with section 7119 of title
5. The Panel shall assist the parties in
resolving the impasse by asserting jurisdiction
and ordering binding arbitration by a private
arbitration board consisting of 3 members in
accordance with section 2471.6(a)(2)(ii) of
title 5, Code of Federal Regulations. The
executive director of the Panel shall request a
list of not less than 15 names of arbitrators
with Federal sector experience from the
director of the Federal Mediation and
Conciliation Service to be provided to the
Administrator and the bargaining
representatives. Within 10 days after receiving
the list, the parties shall each select 1
person. The 2 arbitrators shall then select a
third person from the list within 7 days. If
the 2 arbitrators are unable to agree on the
third person, the parties shall select the
third person by alternately striking names from
the list until only 1 name remains. If the
parties do not agree on the framing of the
issues to be submitted, the arbitration board
shall frame the issues. The arbitration board
shall give the parties a full and fair hearing,
including an opportunity to present evidence in
support of their claims, and an opportunity to
present their case in person, by counsel, or by
other representative as they may elect.
Decisions of the arbitration board shall be
conclusive and binding upon the parties. The
arbitration board shall render its decision
within 90 days after its appointment. The
Administrator and the bargaining representative
shall share costs of the arbitration equally.
The arbitration board shall take into
consideration the effect of its arbitration
decisions on the Federal Aviation
Administration's ability to attract and retain
a qualified workforce and the Federal Aviation
Administration's budget.
(C) Effect.--Upon reaching a voluntary
agreement or at the conclusion of the binding
arbitration under subparagraph (B) above, the
final agreement, except for those matters
decided by the arbitration board, shall be
subject to ratification by the exclusive
representative, if so requested by the
exclusive representative, and approval by the
head of the agency in accordance with
subsection (g)(2)(C).
(D) Enforcement.--Enforcement of the
provisions of this paragraph, and any agreement
hereunder, shall be in the United States
District Court for the District of Columbia.
(3) 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) 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.
(b) Expert Evaluation.--On the date that is 3 years after the
personnel management system is implemented, the Administration
shall employ outside experts to provide an independent
evaluation of the effectiveness of the system within 3 months
after such date. For this purpose, the Administrator may
utilize the services of experts and consultants under section
3109 of title 5 without regard to the limitation imposed by the
last sentence of section 3109(b) of such title, and may
contract on a sole source basis, notwithstanding any other
provision of law to the contrary.
(c) Pay Restriction.--No officer or employee of the
Administration may receive an annual rate of basic pay in
excess of the annual rate of basic pay payable to the
Administrator.
(d) Ethics.--The Administration shall be subject to Executive
Order No. 12674 and regulations and opinions promulgated by the
Office of Government Ethics, including those set forth in
section 2635 of title 5 of the Code of Federal Regulations.
(e) Employee Protections.--Until July 1, 1999, basic wages
(including locality pay) and operational differential pay
provided employees of the Administration shall not be
involuntarily adversely affected by reason of the enactment of
this section, except for unacceptable performance or by reason
of a reduction in force or reorganization or by agreement
between the Administration and the affected employees'
exclusive bargaining representative.
(f) Labor-Management Agreements.--Except as otherwise
provided by this title, all labor-management agreements
covering employees of the Administration that are in effect on
the effective date of the Air Traffic Management System
Performance Improvement Act of 1996 shall remain in effect
until their normal expiration date, unless the Administrator
and the exclusive bargaining representative agree to the
contrary.
(g) Personnel Management System.--
(1) In general.--In consultation with the employees
of the Administration and such non-governmental experts
in personnel management systems as he may employ, and
notwithstanding the provisions of title 5 and other
Federal personnel laws, the Administrator shall develop
and implement, not later than January 1, 1996, a
personnel management system for the Administration that
addresses the unique demands on the agency's workforce.
Such a new system shall, at a minimum, provide for
greater flexibility in the hiring, training,
compensation, and location of personnel.
(2) Applicability of title 5.--The provisions of
title 5 shall not apply to the new personnel management
system developed and implemented pursuant to paragraph
(1), with the exception of--
(A) section [2302(b), relating to
whistleblower protection,] 2302, including the
provisions for investigation and enforcement as
provided in chapter 12 of title 5;
(B) sections 3308-3320, relating to veterans'
preference;
(C) chapter 71, relating to labor-management
relations;
(D) section 7204, relating to
antidiscrimination;
(E) chapter 73, relating to suitability,
security, and conduct;
(F) chapter 81, relating to compensation for
work injury;
(G) chapters 83-85, 87, and 89, relating to
retirement, unemployment compensation, and
insurance coverage; [and]
(H) sections 1204, 1211-1218, 1221, and 7701-
7703, relating to the Merit Systems Protection
[Board.] Board;
(I) subsections (b), (c), and (d) of section
4507 (relating to Meritorious Executive or
Distinguished Executive rank awards), and
section subsections (b) and (c) of section
4507a (relating to Meritorious Senior
Professional or Distinguished Senior
Professional rank-awards), except that--
(i) for purposes of applying such
provisions to the personnel management
system--
(I) the term ``agency'' means
the Department of
Transportation;
(II) the term ``senior
executive'' means an Federal
Aviation Administration
executive;
(III) the term ``career
appointee'' means an Federal
Aviation Administration career
executive; and
(IV) the term ``senior career
employee'' means an Federal
Aviation Administration career
senior professional;
(ii) receipt by a career appointee of
the rank of Meritorious Executive or
Meritorious Senior Professional
entitles such individual to a lump-sum
payment of an amount equal to 20
percent of annual basic pay, which
shall be in addition to the basic pay
paid under the Federal Aviation
Administration Executive Compensation
Plan; and
(iii) receipt by a career appointee
of the rank of Distinguished Executive
or Distinguished Senior Professional
entitles the individual to a lump-sum
payment of an amount equal to 35
percent of annual basic pay, which
shall be in addition to the basic pay
paid under the Federal Aviation
Administration Executive Compensation
Plan; and
(J) sections 6381 through 6387, relating to
Family and Medical Leave.
(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.
(4) Effective date.--This subsection shall take
effect on April 1, 1996.
(h) Right To Contest Adverse Personnel Actions.--An employee
of the Federal Aviation Administration who is the subject of a
major adverse personnel action may contest the action either
through any contractual grievance procedure that is applicable
to the employee as a member of the collective bargaining unit
or through the Administration's internal process relating to
review of major adverse personnel actions of the
Administration, known as Guaranteed Fair Treatment, or under
section 40122(g)(3).
(i) Election of Forum.--Where a major adverse personnel
action may be contested through more than one of the indicated
forums (such as the contractual grievance procedure, the
Federal Aviation Administration's internal process, or that of
the Merit Systems Protection Board), an employee must elect the
forum through which the matter will be contested. Nothing in
this section is intended to allow an employee to contest an
action through more than one forum unless otherwise allowed by
law.
(j) Definition.--In this section, the term ``major adverse
personnel action'' means a suspension of more than 14 days, a
reduction in pay or grade, a removal for conduct or
performance, a nondisciplinary removal, a furlough of 30 days
or less (but not including placement in a nonpay status as the
result of a lapse of appropriations or an enactment by
Congress), or a reduction in force action.
* * * * * * *
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) in accordance with this section;
(B) in accordance with conditions and
limitations prescribed for that operator by the
Administrator; [and]
(C) in accordance with any applicable air
tour management plan for the park or tribal
[lands.] lands; and
(D) in accordance with a voluntary agreement
between the commercial air tour operator and
appropriate representatives of the national
park or tribal lands, as the case may be.
(2) Application for operating authority.--
(A) Application required.--Before commencing
commercial air tour operations over a national
park or tribal lands, a commercial air tour
operator shall apply to the Administrator for
authority to conduct the operations over the
park or tribal lands.
(B) Competitive bidding for limited capacity
parks.--Whenever an air tour management plan
limits the number of commercial air tour
operations over a national park during a
specified time frame, the Administrator, in
cooperation with the [Director] Secretary of
the Interior, shall issue operation
specifications to commercial air tour operators
that conduct such operations. The operation
specifications shall include such terms and
conditions as the Administrator and the
[Director] Secretary of the Interior find
necessary for management of commercial air tour
operations over the park. The Administrator, in
cooperation with the [Director] Secretary of
the Interior, shall develop an open competitive
process for evaluating proposals from persons
interested in providing commercial air tour
operations over the park. In making a selection
from among various proposals submitted, the
Administrator, in cooperation with the
[Director] Secretary of the Interior, shall
consider relevant factors, including--
(i) the safety record of the person
submitting the proposal or pilots
employed by the person;
(ii) any quiet aircraft technology
proposed to be used by the person
submitting the proposal;
(iii) the experience of the person
submitting the proposal with commercial
air tour operations over other national
parks or scenic areas;
(iv) the financial capability of the
person submitting the proposal;
(v) any training programs for pilots
provided by the person submitting the
proposal; and
(vi) responsiveness of the person
submitting the proposal to any relevant
criteria developed by the [National
Park Service] Department of the
Interior for the affected park.
(C) Number of operations authorized.--In
determining the number of authorizations to
issue to provide commercial air tour operations
over a national park, the Administrator, in
cooperation with the [Director] Secretary of
the Interior, shall take into consideration the
provisions of the air tour management plan, the
number of existing commercial air tour
operators and current level of service and
equipment provided by any such operators, and
the financial viability of each commercial air
tour operation.
(D) Cooperation with NPS.--Before granting an
application under this paragraph, the
Administrator, in cooperation with the
[Director] Secretary of the Interior, shall
develop an air tour management plan in
accordance with subsection (b) and implement
such plan.
(E) Time limit on response to ATMP
applications.--The Administrator shall make
every effort to act on any application under
this paragraph and issue a decision on the
application not later than 24 months after it
is received or amended.
(F) Priority.--In acting on applications
under this paragraph to provide commercial air
tour operations over a national park, the
Administrator shall give priority to an
application under this paragraph in any case in
which a new entrant commercial air tour
operator is seeking operating authority with
respect to that national park.
(3) Exception.--Notwithstanding paragraph (1),
commercial air tour operators may conduct commercial
air tour operations over a national park under part 91
of the title 14, Code of Federal Regulations if--
(A) such activity is permitted under part 119
of such title;
(B) the operator secures a letter of
agreement from the Administrator and the
national park superintendent for that national
park describing the conditions under which the
operations will be conducted; and
(C) the total number of operations under this
exception is limited to not more than five
flights in any 30-day period over a particular
park.
(4) Special rule for safety requirements.--
Notwithstanding subsection (c), an existing commercial
air tour operator shall apply, not later than 90 days
after the date of the enactment of this section, for
operating authority under part 119, 121, or 135 of
title 14, Code of Federal Regulations. A new entrant
commercial air tour operator shall apply for such
authority before conducting commercial air tour
operations over a national park or tribal lands. The
Administrator shall make every effort to act on any
such application for a new entrant and issue a decision
on the application not later than 24 months after it is
received or amended.
(5) Waiver for national parks with 100 or fewer
commercial air tour operations per year.--
(A) In general.--Subject to subparagraph (B),
and without further administrative or
environmental process, the Secretary may waive
the requirements of this section with respect
to a national park over which 100 or fewer
commercial air tour operations are conducted in
a year.
(B) Exception to waiver if necessary to
protect park resources.--
(i) In general.--The Secretary may
not waive the requirements of this
section if the Secretary determines
that an air tour management plan is
necessary to protect park resources and
values.
(ii) Notice and publication.--The
Secretary shall inform the
Administrator in writing of the
determinations under clause (i), and
the Secretary and the Administrator
shall publish in the Federal Register a
list of the national parks that fall
under this subparagraph.
(6) Waiver with respect to voluntary agreements.--
(A) In general.--The Secretary may waive the
requirements of this section if a commercial
air tour operator enters into a voluntary
agreement with a national park to manage
commercial air tour operations over the
national park.
(B) Purpose of voluntary agreements.--A
voluntary agreement described in subparagraph
(A) shall seek to protect park resources and
visitor experiences without compromising
aviation safety, and may--
(i) include provisions described in
subparagraph (B) through (E) of
subsection (b)(3);
(ii) include provisions to ensure the
stability of, and compliance with, the
provisions of the voluntary agreement;
and
(iii) set forth a fee schedule for
operating over the national park.
(C) Consultation.--Before entering into a
voluntary agreement described in subparagraph
(A), a national park shall consult with any
Indian tribe over whose tribal lands a
commercial air tour operator may conduct
commercial air tour operations pursuant to the
voluntary agreement.
(D) Review and approval by the secretary and
the administrator.--
(i) Review.--Before executing a
voluntary agreement described in
subparagraph (A), a national park shall
submit the voluntary agreement to the
Secretary and the Administrator for
review and approval.
(ii) Approval.--Not later than 60
days after receiving the agreement from
the national park, the Secretary and
the Administrator shall inform the
national park of the determination of
the Secretary and the Administrator
regarding the approval of the
agreement.
(E) Rescission of voluntary agreement.--
(i) By the secretary.--The Secretary
may rescind a voluntary agreement
described in subparagraph (A) if the
Secretary determines that the agreement
does not adequately protect park
resources or visitor experiences.
(ii) By the administrator.--The
Administrator may rescind a voluntary
agreement described in subparagraph (A)
if the Administrator determines that
the agreement adversely affects
aviation safety or the management of
the national airspace system.
(iii) Effect of rescission.--If the
Secretary or the Administrator rescinds
a voluntary agreement described in
subparagraph (A), the commercial air
tour operator that was a party to the
agreement shall operate under the
requirements for interim operating
authority of subsection (c) until an
air tour management plan for the
national park becomes effective.
(b) Air Tour Management Plans.--
(1) Establishment.--
(A) In general.--The Administrator, in
cooperation with the [Director] Secretary of
the Interior, shall establish an air tour
management plan for any national park or tribal
land for which such a plan is not in effect
whenever a person applies for authority to
conduct a commercial air tour operation over
the park. The air tour management plan shall be
developed by means of a public process in
accordance with paragraph (4).
(B) Objective.--The objective of any air tour
management plan shall be to develop acceptable
and effective measures to mitigate or prevent
the significant adverse impacts, if any, of
commercial air tour operations upon the natural
and cultural resources, visitor experiences,
and tribal lands.
(2) Environmental determination.--In establishing an
air tour management plan under this subsection, the
Administrator and the [Director] Secretary of the
Interior shall each sign the environmental decision
document required by section 102 of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332) which
may include a finding of no significant impact, an
environmental assessment, or an environmental impact
statement and the record of decision for the air tour
management plan.
(3) Contents.--An air tour management plan for a
national park--
(A) may prohibit commercial air tour
operations over a national park in whole or in
part;
(B) may establish conditions for the conduct
of commercial air tour operations over a
national park, including commercial air tour
routes, maximum or minimum altitudes, time-of-
day restrictions, restrictions for particular
events, maximum number of flights per unit of
time, intrusions on privacy on tribal lands,
and mitigation of noise, visual, or other
impacts;
(C) shall apply to all commercial air tour
operations over a national park that are also
within 1/2 mile outside the boundary of a
national park;
(D) shall include incentives (such as
preferred commercial air tour routes and
altitudes, relief from caps and curfews) for
the adoption of quiet aircraft technology by
commercial air tour operators conducting
commercial air tour operations over a national
park;
(E) shall provide for the initial allocation
of opportunities to conduct commercial air tour
operations over a national park if the plan
includes a limitation on the number of
commercial air tour operations for any time
period; and
(F) shall justify and document the need for
measures taken pursuant to subparagraphs (A)
through (E) and include such justifications in
the record of decision.
(4) Procedure.--In establishing an air tour
management plan for a national park or tribal lands,
the Administrator and the [Director] Secretary of the
Interior shall--
(A) hold at least one public meeting with
interested parties to develop the air tour
management plan;
(B) publish the proposed plan in the Federal
Register for notice and comment and make copies
of the proposed plan available to the public;
(C) comply with the regulations set forth in
sections 1501.3 and 1501.5 through 1501.8 of
title 40, Code of Federal Regulations (for
purposes of complying with the regulations, the
Federal Aviation Administration shall be the
lead agency and the [National Park Service]
Department of the Interior is a cooperating
agency); and
(D) solicit the participation of any Indian
tribe whose tribal lands are, or may be,
overflown by aircraft involved in a commercial
air tour operation over the park or tribal
lands to which the plan applies, as a
cooperating agency under the regulations
referred to in subparagraph (C).
(5) Judicial review.--An air tour management plan
developed under this subsection shall be subject to
judicial review.
(6) Amendments.--The Administrator, in cooperation
with the [Director] Secretary of the Interior, may make
amendments to an air tour management plan. Any such
amendments shall be published in the Federal Register
for notice and comment. A request for amendment of an
air tour management plan shall be made in such form and
manner as the Administrator may prescribe.
(c) Interim Operating Authority.--
(1) In general.--Upon application for operating
authority, the Administrator shall grant interim
operating authority under this subsection to a
commercial air tour operator for commercial air tour
operations over a national park or tribal lands for
which the operator is an existing commercial air tour
operator.
(2) Requirements and limitations.--Interim operating
authority granted under this subsection--
(A) shall provide annual authorization only
for the greater of--
(i) the number of flights used by the
operator to provide the commercial air
tour operations over a national park
within the 12-month period prior to the
date of the enactment of this section;
or
(ii) the average number of flights
per 12-month period used by the
operator to provide such operations
within the 36-month period prior to
such date of enactment, and, for
seasonal operations, the number of
flights so used during the season or
seasons covered by that 12-month
period;
(B) may not provide for an increase in the
number of commercial air tour operations over a
national park conducted during any time period
by the commercial air tour operator above the
number that the air tour operator was
originally granted unless such an increase is
agreed to by the Administrator and the
[Director] Secretary of the Interior;
(C) shall be published in the Federal
Register to provide notice and opportunity for
comment;
(D) may be revoked by the Administrator for
cause;
(E) shall terminate 180 days after the date
on which an air tour management plan is
established for the park or tribal lands;
(F) shall promote protection of national park
resources, visitor experiences, and tribal
lands;
(G) shall promote safe commercial air tour
operations;
(H) shall promote the adoption of quiet
technology, as appropriate; and
[(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 process, if--
(i) adequate information on the
existing and proposed operations of the
commercial air tour operator is
provided to the Administrator and the
Secretary by the operator seeking
operating authority;
(ii) the Administrator determines
that the modifications would not
adversely affect aviation safety or the
management of the national airspace
system; and
(iii) the Secretary agrees that the
modifications would not adversely
affect park resources and visitor
experiences.
(3) New entrant air tour operators.--
(A) In general.--The Administrator, in
cooperation with the [Director] Secretary of
the Interior, 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.
(B) Safety limitation.--The Administrator may
not grant interim operating authority under
subparagraph (A) if the Administrator
determines that it would create a safety
problem at the park or on the tribal lands, or
the [Director] Secretary of the Interior
determines that it would create a noise problem
at the park or on the tribal lands.
(C) ATMP limitation.--The Administrator may
grant interim operating authority under
subparagraph (A) of this paragraph only if the
air tour management plan for the park or tribal
lands to which the application relates has not
been developed within 24 months after the date
of the enactment of this section.
(d) Exemptions.--This section shall not apply to--
(1) the Grand Canyon National Park; or
(2) tribal lands within or abutting the Grand Canyon
National Park.
(e) 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.
(f) Definitions.--In this section, the following definitions
apply:
(1) Commercial air tour operator.--The term
``commercial air tour operator'' means any person who
conducts a commercial air tour operation over a
national park.
(2) Existing commercial air tour operator.--The term
``existing commercial air tour operator'' means a
commercial air tour operator that was actively engaged
in the business of providing commercial air tour
operations over a national park at any time during the
12-month period ending on the date of the enactment of
this section.
(3) New entrant commercial air tour operator.--The
term ``new entrant commercial air tour operator'' means
a commercial air tour operator that--
(A) applies for operating authority as a
commercial air tour operator for a national
park or tribal lands; and
(B) has not engaged in the business of
providing commercial air tour operations over
the national park or tribal lands in the 12-
month period preceding the application.
(4) Commercial air tour operation over a national
park.--
(A) In general.--The term ``commercial air
tour operation over a national park'' means any
flight, conducted for compensation or hire in a
powered aircraft where a purpose of the flight
is sightseeing over a national park, within 1/2
mile outside the boundary of any national park
(except the Grand Canyon National Park), or
over tribal lands (except those within or
abutting the Grand Canyon National Park),
during which the aircraft flies--
(i) below a minimum altitude,
determined by the Administrator in
cooperation with the [Director]
Secretary of the Interior, above ground
level (except solely for purposes of
takeoff or landing, or necessary for
safe operation of an aircraft as
determined under the rules and
regulations of the Federal Aviation
Administration requiring the pilot-in-
command to take action to ensure the
safe operation of the aircraft); or
(ii) less than 1 mile laterally from
any geographic feature within the park
(unless more than 1/2 mile outside the
boundary).
(B) Factors to consider.--In making a
determination of whether a flight is a
commercial air tour operation over a national
park for purposes of this section, the
Administrator may consider--
(i) whether there was a holding out
to the public of willingness to conduct
a sightseeing flight for compensation
or hire;
(ii) whether a narrative that
referred to areas or points of interest
on the surface below the route of the
flight was provided by the person
offering the flight;
(iii) the area of operation;
(iv) the frequency of flights
conducted by the person offering the
flight;
(v) the route of flight;
(vi) the inclusion of sightseeing
flights as part of any travel
arrangement package offered by the
person offering the flight;
(vii) whether the flight would have
been canceled based on poor visibility
of the surface below the route of the
flight; and
(viii) any other factors that the
Administrator and the [Director]
Secretary of the Interior consider
appropriate.
(5) National park.--The term ``national park'' means
any unit of the National Park System.
(6) Tribal lands.--The term ``tribal lands'' means
Indian country (as that term is defined in section 1151
of title 18) that is within or abutting a national
park.
(7) Administrator.--The term ``Administrator'' means
the Administrator of the Federal Aviation
Administration.
[(8) Director.--The term ``Director'' means the
Director of the National Park Service.]
* * * * * * *
Sec. 40130. FAA access to criminal history records or databases systems
(a) Access to Records or Databases Systems.--
(1) Notwithstanding section 534 of title 28 and the
implementing regulations for such section (28 C.F.R.
part 20), the Administrator of the Federal Aviation
Administration is authorized to access a system of
documented criminal justice information maintained by
the Department of Justice or by a State but may do so
only for the purpose of carrying out its civil and
administrative responsibilities to protect the safety
and security of the National Airspace System or to
support the missions of the Department of Justice, the
Department of Homeland Security, and other law
enforcement agencies. The Administrator shall be
subject to the same conditions or procedures
established by the Department of Justice or State for
access to such an information system by other
governmental agencies with access to the system.
(2) The Administrator may not use the access
authorized under paragraph (1) to conduct criminal
investigations.
(b) Designated Employees.--The Administrator shall, by order,
designate those employees of the Administration who shall carry
out the authority described in subsection (a). Such designated
employees may--
(1) have access to and receive criminal history,
driver, vehicle, and other law enforcement information
contained in the law enforcement databases of the
Department of Justice, or of any jurisdiction in a
State in the same manner as a police officer employed
by a State or local authority of that State who is
certified or commissioned under the laws of that State;
(2) use any radio, data link, or warning system of
the Federal Government and of any jurisdiction in a
State that provides information about wanted persons,
be-on-the-lookout notices, or warrant status or other
officer safety information to which a police officer
employed by a State or local authority in that State
who is certified or commission under the laws of that
State has access and in the same manner as such police
officer; or
(3) receive Federal, State, or local government
communications with a police officer employed by a
State or local authority in that State in the same
manner as a police officer employed by a State or local
authority in that State who is commissioned under the
laws of that State.
(c) System of Documented Criminal Justice Information
Defined.--In this section the term ``system of documented
criminal justice information'' means any law enforcement
databases, systems, or communications containing information
concerning identification, criminal history, arrests,
convictions, arrest warrants, or wanted or missing persons,
including the National Crime Information Center and its
incorporated criminal history databases and the National Law
Enforcement Telecommunications System.
SUBTITLE VII--AVIATION PROGRAMS
PART A--AIR COMMERCE AND SAFETY
SUBPART II--ECONOMIC REGULATION
CHAPTER 417--OPERATIONS OF CARRIERS
Sec. 41718. Special rules for Ronald Reagan Washington National Airport
(a) Beyond-Perimeter Exemptions.--The Secretary shall grant,
by order, [24] 36 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) provide air transportation with domestic network
benefits in areas beyond the perimeter described in
that section;
(2) increase competition by new entrant air carriers
or in multiple markets;
(3) not reduce travel options for communities served
by small hub airports and medium hub airports within
the perimeter described in section 49109; and
(4) not result in meaningfully increased travel
delays.
(b) Within-Perimeter Exemptions.--The Secretary shall grant,
by order, [20] 28 exemptions from the requirements of sections
49104(a)(5), 49111(e), and 41714 of this title and subparts K
and S of part 93 of title 14, Code of Federal Regulations, to
air carriers for providing air transportation to airports
within the perimeter established for civil aircraft operations
at Ronald Reagan Washington National Airport under section
49109. The Secretary shall develop criteria for distributing
slot exemptions for flights within the perimeter to such
airports under this paragraph in a manner that promotes air
transportation--
(1) by new entrant air carriers and limited incumbent
air carriers;
(2) to communities without existing nonstop air
transportation to Ronald Reagan Washington National
Airport;
(3) to small communities;
(4) that will provide competitive nonstop air
transportation on a monopoly nonstop route to Ronald
Reagan Washington National Airport; or
(5) that will produce the maximum competitive
benefits, including low fares.
(c) Limitations.--
(1) Stage 3 aircraft required.--An exemption may not
be granted under this section with respect to any
aircraft that is not a Stage 3 aircraft (as defined by
the Secretary).
(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.] 4 operations. Operations conducted by
new entrant and limited incumbent air carriers shall be
afforded a scheduling priority over operations
conducted by other air carriers granted exemptions
pursuant to section 41718 with the highest scheduling
priority afforded to beyond-perimeter operations
conducted by new entrant and limited incumbent air
carriers.
(3) Allocation of within-perimeter exemptions.--Of
the exemptions granted under subsection (b)--
(A) without regard to the criteria contained
in subsection (b)(1), [six] 8 shall be for air
transportation to small hub airports and nonhub
airports;
(B) [ten] 12 shall be for air transportation
to medium hub and smaller airports; and
(C) [four] 6 shall be for air transportation
to airports without regard to their size.
(4) Applicability to exemption no. 5133.--Nothing in
this section affects Exemption No. 5133, as from time-
to-time amended and extended.
(d) Application Procedures.--The Secretary shall establish
procedures to ensure that all requests for exemptions under
this section are granted or denied within 90 days after the
date on which the request is made.
(e) 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) 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.
* * * * * * *
Sec. 41722. Delay reduction actions
(a) Scheduling Reduction Meetings.--The Secretary of
Transportation may request that air carriers meet with the
Administrator of the Federal Aviation Administration to discuss
flight reductions at severely congested airports to reduce
overscheduling and flight delays during hours of peak operation
if--
(1) the Administrator determines that it is necessary
to convene such a meeting; and
(2) the Secretary determines that the meeting is
necessary to meet a serious transportation need or
achieve an important public benefit.
(b) Meeting Conditions.--Any meeting under subsection (a)--
(1) shall be chaired by the Administrator;
(2) shall be open to all scheduled air carriers; and
(3) shall be limited to discussions involving the
airports and time periods described in the
Administrator's determination.
(c) Flight Reduction Targets.--Before any such meeting is
held, the Administrator shall establish flight reduction
targets for the meeting and notify the attending air carriers
of those targets not less than 48 hours before the meeting.
(d) Delay Reduction Offers.--An air carrier attending the
meeting shall make any offer to meet a flight reduction target
to the Administrator rather than to another carrier.
(e) Transcript.--The Administrator shall ensure that a
transcript of the meeting is kept and made available to the
public not later than 3 business days after the conclusion of
the meeting.
(f) Chronically Delayed Flights.--
(1) Publication of list of flights.--An air carrier
holding a certificate issued under section 41102 that
conducts scheduled passenger air transportation shall
publish and update monthly on the Internet website of
the air carrier, or provide on request, a list of
chronically delayed flights operated by the air
carrier.
(2) Disclosure to customers when purchasing
tickets.--An air carrier shall disclose the following
information prominently to an individual before that
individual books transportation on the air carrier's
Internet website for any flight for which data is
reported to the Department of Transportation under part
234 of title 14, Code of Federal Regulations, and for
which the air carrier has primary responsibility for
inventory control:
(A) The on-time performance for the flight if
it is a chronically delayed flight.
(B) The cancellation rate for the flight if
it is a chronically canceled flight.
(3) Chronically delayed; chronically canceled.--The
Secretary of Transportation shall define the terms
``chronically delayed flight'' and `chronically
canceled flight' for purposes of this subsection.
* * * * * * *
Sec. 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) provide for a reduction in compensation when an
air carrier does not provide service or transportation
agreed to be provided;
(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 carriers to improve air service to small and
rural communities by incorporating financial incentives
in essential air service contracts based on specified
performance goals; and
(E) include provisions under which the Secretary may
execute long-term essential air service contracts to
encourage carriers to provide air service to small and
rural communities where it would be in the public
interest to do so.
(2) Promotional amounts described in paragraph (1)(B) of this
subsection shall be a special, segregated element of the
compensation provided to a carrier under this subchapter.
(b) Required Finding.--The Secretary may pay compensation to
an air carrier for providing air service or air transportation
under this subchapter only if the Secretary finds the carrier
is able to provide the service or transportation in a reliable
way.
(c) Claims.--Not later than 15 days after receiving a written
claim from an air carrier for compensation under this
subchapter, the Secretary shall--
(1) pay or deny the United States Government's share
of a claim; and
(2) if denying the claim, notify the carrier of the
denial and the reasons for the denial.
(d) Authority To Make Agreements and Incur Obligations.--(1)
The Secretary may make agreements and incur obligations from
the Airport and Airway Trust Fund established under section
9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502) to
pay compensation under this subchapter. An agreement by the
Secretary under this subsection is a contractual obligation of
the Government to pay the Government's share of the
compensation.
(2) Not more than $38,600,000 is available to the Secretary
out of the Fund for each of the fiscal years ending September
30, 1993-1998, to incur obligations under this section. Amounts
made available under this section remain available until
expended.
(e) Adjustments to Account for Significantly Increased
Costs.--
(1) In general.--If the Secretary determines that air
carriers are experiencing significantly increased costs
in providing air service or air transportation for
which compensation is being paid under this subchapter,
the Secretary may increase the rates of compensation
payable under this subchapter without regard to any
agreement or requirement relating to the renegotiation
of contracts or any notice requirement under section
41734.
(2) Readjustment if costs subsequently decline.--If
an adjustment is made under paragraph (1), and total
unit costs subsequently decrease to at least the total
unit cost reflected in the compensation rate, then the
Secretary may reverse the adjustment previously made
under paragraph (1) without regard to any agreement or
requirement relating to the renegotiation of contracts
or any notice requirement under section 41734.
(3) Significantly increased costs defined.--In this
subsection, the term ``significantly increased costs''
means a total unit cost increase (but not increases in
individual unit costs) of 10 percent or more in
relation to the total unit cost reflected in the
compensation rate, based on the carrier's internal
audit of its financial statements if such cost increase
is incurred for a period of at least 2 consecutive
months.
* * * * * * *
Sec. 41742. Essential air service authorization
(a) In General.--
(1) Authorization.--Out of the amounts received by
the Federal Aviation Administration credited to the
account established under section 45303 of this title
or otherwise provided to the Administration, the sum of
$50,000,000 is authorized and shall be made available
immediately for obligation and expenditure to carry out
the essential air service program under this subchapter
for each fiscal year. Any amount in excess of
$50,000,000 credited for any fiscal year to the account
established under section 45303(c) shall be obligated
for programs under section 406 of the Vision 100--
Century of Aviation Reauthorization Act (49 U.S.C.
40101 note) and section 41745 of this title. Amounts
appropriated pursuant to this section shall remain
available until expended.
(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.
(3) Authorization for additional employees.--In
addition to amounts authorized under paragraphs (1) and
(2), there are authorized to be appropriated such sums
as may be necessary for the Secretary of Transportation
to hire and employ 4 additional employees for the
office responsible for carrying out the essential air
service program.
(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, 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 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) Small Community Air Service Development Program.--The
Secretary of Transportation shall establish a program that
meets the requirements of this section for improving air
carrier service to airports not receiving sufficient air
carrier service.
(b) Application Required.--In order to participate in the
program established under subsection (a), a community or
consortium of communities shall submit an application to the
Secretary in such form, at such time, and containing such
information as the Secretary may require, including--
(1) an assessment of the need of the community or
consortium for access, or improved access, to the
national air transportation system; and
(2) an analysis of the application of the criteria in
subsection (c) to that community or consortium.
(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) Size.--For calendar year 1997, the airport
serving the community or consortium was not larger than
a small hub airport, and--
(A) had insufficient air carrier service; or
(B) had unreasonably high air fares.
(2) Characteristics.--The airport presents
characteristics, such as geographic diversity or unique
circumstances, that will demonstrate the need for, and
feasibility of, the program established under
subsection (a).
(3) State limit.--Not more than 4 communities or
consortia of communities, or a combination thereof,
from the same State may be selected to participate in
the program in any fiscal year.
(4) Overall limit.--No more than 40 communities or
consortia of communities, or a combination thereof, may
be selected to participate in the program in each year
for which funds are appropriated for the program. No
community, consortia of communities, nor combination
thereof may participate in the program in support of
the same project more than once, but any community,
consortia of communities, or combination thereof may
apply, subsequent to such participation, to participate
in the program in support of a different project.
(5) Priorities.--The Secretary shall give priority to
communities or consortia of communities where--
(A) air fares are higher than the average air
fares for all communities;
(B) the community or consortium will provide
a portion of the cost of the activity to be
assisted under the program from local sources
other than airport revenues;
(C) the community or consortium has
established, or will establish, a public-
private partnership to facilitate air carrier
service to the public;
(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 region or multistate application to improve
air service.
(d) Types of Assistance.--The Secretary may use amounts made
available under this section--
(1) to provide assistance to an air carrier to
subsidize service to and from an underserved airport
for a period not to exceed 3 years;
(2) to provide assistance to an underserved airport
to obtain service to and from the underserved airport;
and
(3) to provide assistance to an underserved airport
to implement such other measures as the Secretary, in
consultation with such airport, considers appropriate
to improve air service both in terms of the cost of
such service to consumers and the availability of such
service, including improving air service through
marketing and promotion of air service and enhanced
utilization of airport facilities.
(e) Authority To Make Agreements.--
(1) In general.--The Secretary may make agreements to
provide assistance under this section.
(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.
(f) Additional Action.--Under the program established under
subsection (a), the Secretary shall work with air carriers
providing service to participating communities and major air
carriers (as defined in section 41716(a)(2)) serving large hub
airports to facilitate joint-fare arrangements consistent with
normal industry practice.
(g) Designation of Responsible Official.--The Secretary shall
designate an employee of the Department of Transportation--
(1) to function as a facilitator between small
communities and air carriers;
(2) to carry out this section;
(3) to ensure that the Bureau of Transportation
Statistics collects data on passenger information to
assess the service needs of small communities;
(4) to work with and coordinate efforts with other
Federal, State, and local agencies to increase the
viability of service to small communities and the
creation of aviation development zones; and
(5) to provide policy recommendations to the
Secretary and Congress that will ensure that small
communities have access to quality, affordable air
transportation services.
(h) Air Service Development Zone.--The Secretary shall
designate an airport in the program as an Air Service
Development Zone and work with the community or consortium on
means to attract business to the area surrounding the airport,
to develop land use options for the area, and provide data,
working with the Department of Commerce and other agencies.
* * * * * * *
Sec. 41745. Community and regional choice programs
(a) Alternate Essential Air Service Pilot Program.--
(1) Establishment.--The Secretary of Transportation
shall establish an alternate essential air service
pilot program in accordance with the requirements of
this section.
(2) Assistance to eligible places.--In carrying out
the program, the Secretary, instead of paying
compensation to an air carrier to provide essential air
service to an eligible place, may provide assistance
directly to a unit of local government having
jurisdiction over the eligible place or a State within
the boundaries of which the eligible place is located.
(3) Use of assistance.--A unit of local government or
State receiving assistance for an eligible place under
the program may use the assistance for any of the
following purposes:
(A) To provide assistance to air carriers
that will use smaller equipment to provide the
service and to consider increasing the
frequency of service using such smaller
equipment if the Secretary determines that
passenger safety would not be compromised by
the use of such smaller equipment and if the
State or unit of local government waives the
minimum service requirements under section
41732(b).
(B) To provide assistance to an air carrier
to provide on-demand air taxi service to and
from the eligible place.
(C) To provide assistance to a person to
provide scheduled or on-demand surface
transportation to and from the eligible place
and an airport in another place.
(D) In combination with other units of local
government in the same region, to provide
transportation services to and from all the
eligible places in that region at an airport or
other transportation center that can serve all
the eligible places in that region.
(E) To purchase aircraft to provide
transportation to and from the eligible place
or to purchase a fractional share in an
aircraft to provide such transportation after
the effective date of a rule the Secretary
issues relating to fractional ownership.
(F) To pay for other transportation or
related services that the Secretary may permit.
(b) Community Flexibility Pilot Program.--
(1) In general.--The Secretary shall establish a
pilot program for not more than 10 eligible places or
consortia of units of local government.
(2) Election.--Under the program, the sponsor of an
airport serving an eligible place may elect to forego
any essential air service for which compensation is
being provided under this subchapter for a 10-year
period in exchange for a grant from the Secretary equal
in value to twice the compensation paid to provide such
service in the most recent 12-month period.
(3) Grant.--Notwithstanding any other provision of
law, the Secretary shall make a grant to each airport
sponsor participating in the program for use on any
project that--
(A) is eligible for assistance under chapter
471 and complies with the requirements of that
chapter;
(B) is located on the airport property; or
(C) will improve airport facilities in a way
that would make such facilities more usable for
general aviation.
(c) Conversion of Lost Eligibility Airports.--
(1) In general.--The Secretary shall establish a
program to provide general aviation conversion funding
for airports serving eligible places that the Secretary
has determined no longer qualify as eligible places.
(2) Grants.--A grant under this subsection--
(A) may not exceed twice the compensation
paid to provide essential air service to the
airport in the fiscal year preceding the fiscal
year in which the Secretary determines that the
place served by the airport is no longer an
eligible place; and
(B) may be used--
(i) for airport development (as
defined in section 47102(3)) that will
enhance general aviation capacity at
the airport;
(ii) to defray operating expenses, if
such use is approved by the Secretary;
or
(iii) to develop innovative air
service options, such as on-demand or
air taxi operations, if such use is
approved by the Secretary.
(3) AIP requirements.--An airport sponsor that uses
funds provided under this subsection for an airport
development project shall comply with the requirements
of subchapter I of chapter 471 applicable to airport
development projects funded under that subchapter with
respect to the project funded under this subsection.
(4) Limitation.--The sponsor of an airport receiving
funding under this subsection is not eligible for
funding under section 41736.
[(c)] (d) Fractionally Owned Aircraft.--After the effective
date of the rule referred to in subsection (a)(3)(E), only
those operating rules that relate to an aircraft that is
fractionally owned apply when an aircraft described in
subsection (a)(3)(E) is used to provide transportation
described in subsection (a)(3)(E).
[(d)] (e) Applications.--
(1) In general.--An entity seeking to participate in
a program under this section shall submit to the
Secretary an application in such form and containing
such information as the Secretary may require.
(2) Required information.--At a minimum, the
application shall include--
(A) a statement of the amount of compensation
or assistance required; and
(B) a description of how the compensation or
assistance will be used.
[(e)] (f) Participation Requirements.--[An eligible place]
Neither an eligible place, nor a place to which subsection (c)
applies, for which compensation or assistance is provided under
this section in a fiscal year shall [not] be eligible in that
fiscal year for the essential air service that it would
otherwise be entitled to under this subchapter.
[(f)] (g) Subsequent Participation.--A unit of local
government participating in the program under this subsection
(a) in a fiscal year shall not be prohibited from participating
in the basic essential air service program under this
subchapter in a subsequent fiscal year if such unit is
otherwise eligible to participate in such program.
[(g)] (h) Funding.--Amounts appropriated or otherwise made
available to carry out the essential air service program under
this subchapter shall be available to carry out this section.
SUBCHAPTER IV--AIRLINE CUSTOMER SERVICE
Sec. 41781. AIRLINE CONTINGENCY SERVICE REQUIREMENTS.
(a) In General.--Not later than 60 days after the date of the
enactment of the Aviation Investment and Modernization Act of
2007, each air carrier shall institute the following practices:
(1) Provision of food and water.--In any case in
which departure of a flight of an air carrier is
substantially delayed, such air carrier shall provide--
(A) adequate food and potable water to
passengers on such flight during such delay;
and
(B) adequate restroom facilities to
passengers on such flight during such delay.
(2) Right to deplane.--
(A) In general.--An air carrier shall develop
a plan, that incorporates medical
considerations, to ensure that passengers are
provided a clear timeframe under which they
will be permitted to deplane a delayed
aircraft. The air carrier shall provide a copy
of the plan to the Secretary of Transportation,
who shall make the plan available to the
public. In the absence of such a plan, except
as provided in subparagraph (B), if more than 3
hours after passengers have boarded an air
carrier and the air carrier doors are closed,
the air carrier has not departed, the air
carrier shall provide passengers with the
option to deplane safely before the departure
of such air carrier. Such option shall be
provided to passengers not less often than once
during each 3-hour period that the plane
remains on the ground.
(B) Exceptions.--Subparagraph (A) shall not
apply--
(i) if the pilot of such flight
reasonably determines that such flight
will depart not later than 30 minutes
after the 3 hour delay; or
(ii) if the pilot of such flight
reasonably determines that permitting a
passenger to deplane would jeopardize
passenger safety or security.
(C) Application to diverted flights.--This
section applies to aircraft without regard to
whether they have been diverted to an airport
other than the original destination.
(b) Posting Consumer Rights on Website.--An air carrier
holding a certificate issued under section 41102 that conducts
scheduled passenger air transportation shall publish
conspicuously and update monthly on the Internet website of the
air carrier a statement of the air carrier's customer service
policy and of air carrier customers' consumer rights under
Federal and State law.
(c) Air Carrier.--In this section the term ``air carrier''
means an air carrier holding a certificate issued under section
41102 that conducts scheduled passenger air transportation.
SUBTITLE VII--AVIATION PROGRAMS
PART A--AIR COMMERCE AND SAFETY
SUBPART III--SAFETY
CHAPTER 443--INSURANCE
Sec. 44303. Coverage
(a) In General.--The Secretary of Transportation may provide
insurance and reinsurance, or reimburse insurance costs, as
authorized under section 44302 of this title for the following:
(1) an American aircraft or foreign-flag aircraft
engaged in aircraft operations the President decides
are necessary in the interest of air commerce or
national security or to carry out the foreign policy of
the United States Government.
(2) property transported or to be transported on
aircraft referred to in clause (1) of this section,
including--
(A) shipments by express or registered mail;
(B) property owned by citizens or residents
of the United States;
(C) property--
(i) imported to, or exported from,
the United States; and
(ii) bought or sold by a citizen or
resident of the United States under a
contract putting the risk of loss or
obligation to provide insurance against
risk of loss on the citizen or
resident; and
(D) property transported between--
(i) a place in a State or the
District of Columbia and a place in a
territory or possession of the United
States;
(ii) a place in a territory or
possession of the United States and a
place in another territory or
possession of the United States; or
(iii) 2 places in the same territory
or possession of the United States.
(3) the personal effects and baggage of officers and
members of the crew of an aircraft referred to in
clause (1) of this section and of other individuals
employed or transported on that aircraft.
(4) officers and members of the crew of an aircraft
referred to in clause (1) of this section and other
individuals employed or transported on that aircraft
against loss of life, injury, or detention.
(5) statutory or contractual obligations or other
liabilities, customarily covered by insurance, of an
aircraft referred to in clause (1) of this section or
of the owner or operator of that aircraft.
(6) loss or damage of an aircraft manufacturer
resulting from operation of an aircraft by an air
carrier and involving war or terrorism.
(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. 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.] October 1, 2017.
PART A--AIR COMMERCE AND SAFETY
SUBPART III--SAFETY
CHAPTER 445--FACILITIES, PERSONNEL, AND RESEARCH
Sec. 44501. Plans and policy
(a) Long Range Plans and Policy Requirements.--The
Administrator of the Federal Aviation Administration shall make
long range plans and policy for the orderly development and use
of the navigable airspace, and the orderly development and
location of air navigation facilities, that will best meet the
needs of, and serve the interests of, civil aeronautics and the
national defense, except for needs of the armed forces that are
peculiar to air warfare and primarily of military concern.
(b) Airway Capital Investment Plan.--The Administrator of the
Federal Aviation Administration shall review, revise, and
publish a national airways system plan, known as the Airway
Capital Investment Plan, before the beginning of each fiscal
year. The plan shall set forth--
(1) for a 10-year period, the research, engineering,
and development programs and the facilities and
equipment that the Administrator considers necessary
for a system of airways, air traffic services, and
navigation aids that will--
(A) meet the forecasted needs of civil
aeronautics;
(B) meet the requirements that the Secretary
of Defense establishes for the support of the
national defense; and
(C) provide the highest degree of safety in
air commerce;
(2) for the first and 2d years of the plan, detailed
annual estimates of--
(A) the number, type, location, and cost of
acquiring, operating, and maintaining required
facilities and services;
(B) the cost of research, engineering, and
development required to improve safety, system
capacity, and efficiency; and
(C) personnel levels required for the
activities described in subclauses (A) and (B)
of this clause;
(3) for the 3d, 4th, and 5th years of the plan,
estimates of the total cost of each major program for
the 3-year period, and additional major research
programs, acquisition of systems and facilities, and
changes in personnel levels that may be required to
meet long range objectives and that may have
significant impact on future funding requirements;
[and]
(4) a 10-year investment plan that considers long
range objectives that the Administrator considers
necessary to--
(A) ensure that safety is given the highest
priority in providing for a safe and efficient
airway system; and
(B) meet the current and projected growth of
aviation and the requirements of interstate
commerce, the United States Postal Service, and
the national [defense.] defense; and
(5) a list of projects that are part of the Next
Generation Air Transportation System and do not have as
a primary purpose to operate or maintain the current
air traffic control system.
(c) National Aviation Research Plan.--(1) The Administrator
of the Federal Aviation Administration shall prepare and
publish annually a national aviation research plan and submit
the plan to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Science of
the House of Representatives. The plan shall be submitted not
later than the date of submission of the President's budget to
Congress.
(2)(A) The plan shall describe, for a 5-year period, the
research, engineering, and development that the Administrator
of the Federal Aviation Administration considers necessary--
(i) to ensure the continued capacity, safety, and
efficiency of aviation in the United States,
considering emerging technologies and forecasted needs
of civil aeronautics; and
(ii) to provide the highest degree of safety in air
travel.
(B) The plan shall--
(i) provide estimates by year of the schedule, cost,
and work force levels for each active and planned major
research and development project under sections 40119,
44504, 44505, 44507, 44509, 44511-44513, and 44912 of
this title, including activities carried out under
cooperative agreements with other Federal departments
and agencies;
(ii) specify the goals and the priorities for
allocation of resources among the major categories of
research and development activities, including the
rationale for the priorities identified;
(iii) identify the allocation of resources among
long-term research, near-term research, and development
activities;
(iv) identify the individual research and development
projects in each funding category that are described in
the annual budget request;
(v) highlight the research and development activities
that address specific recommendations of the research
advisory committee established under section 44508 of
this title, and document the recommendations of the
committee that are not accepted, specifying the reasons
for nonacceptance; and
(vi) highlight the research and development
technology transfer activities that promote technology
sharing among government, industry, and academia
through the Stevenson-Wydler Technology Innovation Act
of 1980.
(3) Subject to section 40119(b) of this title and regulations
prescribed under section 40119(b), the Administrator of the
Federal Aviation Administration shall submit to the committees
named in paragraph (1) of this subsection an annual report on
the accomplishments of the research completed during the prior
fiscal year, including a description of the dissemination to
the private sector of research results and a description of any
new technologies developed. The report shall be submitted with
the plan required under paragraph (1) and be organized to allow
comparison with the plan in effect for the prior fiscal year.
The report shall be prepared in accordance with requirements of
section 1116 of title 31.
* * * * * * *
Sec. 44504. Improved aircraft, aircraft engines, propellers, and
appliances
(a) Developmental Work and Service Testing.--The
Administrator of the Federal Aviation Administration may
conduct or supervise developmental work and service testing to
improve unmanned and manned aircraft, aircraft engines,
propellers, and appliances.
(b) Research.--The Administrator shall conduct or supervise
research--
(1) to develop technologies and analyze information
to predict the effects of aircraft design, maintenance,
testing, wear, and fatigue on the life of aircraft,
including nonstructural aircraft systems, and air
safety;
(2) to develop methods of analyzing and improving
aircraft maintenance technology and practices,
including nondestructive evaluation of aircraft
structures;
(3) to assess the fire and smoke resistance of
aircraft material;
(4) to develop improved fire and smoke resistant
material for aircraft interiors;
(5) to develop and improve fire and smoke containment
systems for inflight aircraft fires;
(6) to develop advanced aircraft fuels with low
flammability and technologies that will contain
aircraft fuels to minimize post-crash fire hazards;
[and]
(7) to develop technologies and methods to assess the
risk of and prevent defects, failures, and malfunctions
of products, parts, processes, and articles
manufactured for use in aircraft, aircraft engines,
propellers, and appliances that could result in a
catastrophic failure of an [aircraft.] aircraft; and
(8) in conjunction with other Federal agencies as
appropriate, to develop technologies and methods to
assess the risk of and prevent defects, failures, and
malfunctions of products, parts, and processes, for use
in all classes of unmanned aerial systems that could
result in a catastrophic failure.
(c) Authority To Buy Items Offering Special Advantages.--In
carrying out this section, the Administrator, by negotiation or
otherwise, may buy or exchange experimental aircraft, aircraft
engines, propellers, and appliances that the Administrator
decides may offer special advantages to aeronautics.
Sec. 44505. Systems, procedures, facilities, and devices
(a) General Requirements.--(1) The Administrator of the
Federal Aviation Administration shall--
(A) develop, alter, test, and evaluate systems,
procedures, facilities, and devices, and define their
performance characteristics, to meet the needs for safe
and efficient navigation and traffic control of civil
and military aviation, except for needs of the armed
forces that are peculiar to air warfare and primarily
of military concern; and
(B) select systems, procedures, facilities, and
devices that will best serve those needs and promote
maximum coordination of air traffic control and air
defense systems.
(2) The Administrator may make contracts to carry out this
subsection without regard to section 3324(a) and (b) of title
31.
(3) When a substantial question exists under paragraph (1) of
this subsection about whether a matter is of primary concern to
the armed forces, the Administrator shall decide whether the
Administrator or the Secretary of the appropriate military
department has responsibility. The Administrator shall be given
technical information related to each research and development
project of the armed forces that potentially applies to, or
potentially conflicts with, the common system to ensure that
potential application to the common system is considered
properly and that potential conflicts with the system are
eliminated.
(b) Research on Human Factors and Simulation Models.--The
Administrator shall conduct or supervise research--
(1) to develop a better understanding of the
relationship between human factors and aviation
accidents and between human factors and air safety;
(2) to enhance air traffic controller, mechanic, and
flight crew performance;
(3) to develop a human-factor analysis of the hazards
associated with new technologies to be used by air
traffic controllers, mechanics, and flight crews;
(4) to identify innovative and effective corrective
measures for human errors that adversely affect air
safety; [and]
(5) to develop dynamic simulation models of the air
traffic control system and airport design and operating
procedures that will provide analytical technology--
(A) to predict airport and air traffic
control safety and capacity problems;
(B) to evaluate planned research projects;
and
(C) to test proposed revisions in airport and
air traffic control operations [programs.]
programs;
(6) to develop a better understanding of the
relationship between human factors and unmanned aerial
systems air safety; and
(7) to develop dynamic simulation models of
integrating all classes of unmanned aerial systems into
the National Air Space.
(c) Research on Developing and Maintaining a Safe and
Efficient System.--The Administrator shall conduct or supervise
research on--
(1) airspace and airport planning and design;
(2) airport capacity enhancement techniques;
(3) human performance in the air transportation
environment;
(4) aviation safety and security;
(5) the supply of trained air transportation
personnel, including pilots and mechanics; and
(6) other aviation issues related to developing and
maintaining a safe and efficient air transportation
system.
(d) Cooperative Agreements.--The Administrator may enter into
cooperative agreements on a cost-shared basis with Federal and
non-Federal entities that the Administrator may select in order
to conduct, encourage, and promote aviation research,
engineering, and development, including the development of
prototypes and demonstration models.
* * * * * * *
Sec. 44511. Aviation research grants
(a) General Authority.--The Administrator of the Federal
Aviation Administration may make grants to institutions of
higher education and nonprofit research organizations to
conduct aviation research in areas the Administrator considers
necessary for the long-term growth of civil aviation.
(b) Applications.--An institution of higher education or
nonprofit research organization interested in receiving a grant
under this section may submit an application to the
Administrator. The application must be in the form and contain
the information the Administrator requires.
(c) Solicitation, Review, and Evaluation Process.--The
Administrator shall establish a solicitation, review, and
evaluation process that ensures--
(1) providing grants under this section for proposals
having adequate merit and relevancy to the mission of
the Administration;
(2) a fair geographical distribution of grants under
this section; and
(3) the inclusion of historically black institutions
of higher education and other minority nonprofit
research organizations for grant consideration under
this section.
(d) Records.--Each person receiving a grant under this
section shall maintain records that the Administrator requires
as being necessary to facilitate an effective audit and
evaluation of the use of money provided under the grant.
(e) Annual Report.--The Administrator shall submit an annual
report to the Committee on Science of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate on carrying out this section.
(f) Airport Cooperative Research Program.--
(1) Establishment.--The Secretary of Transportation
shall [establish a 4-year pilot] maintain an airport
cooperative research program to--
(A) identify problems that are shared by
airport operating agencies and can be solved
through applied research but that are not being
adequately addressed by existing Federal
research programs; and
(B) fund research to address those problems.
(2) Governance.--The Secretary of Transportation
shall appoint an independent governing board for the
research program established under this subsection. The
governing board shall be appointed from candidates
nominated by national associations representing public
airport operating agencies, airport executives, State
aviation officials, and the scheduled airlines, and
shall include representatives of appropriate Federal
agencies. Section 14 of the Federal Advisory Committee
Act shall not apply to the governing board.
(3) Implementation.--The Secretary of Transportation
shall enter into an arrangement with the National
Academy of Sciences to provide staff support to the
governing board established under paragraph (2) and to
carry out projects proposed by the governing board that
the Secretary considers appropriate.
(4) Report.--Not later than 6 months after the
expiration of the pilot program under this subsection,
the Secretary shall transmit to the Congress a report
on the [program, including recommendations as to the
need for establishing a permanent airport cooperative
research program.] program.
* * * * * * *
Sec. 44518. Pilot program for airport takeover of terminal area air
navigation equipment
(a) In General.--Subject to the requirements of this section,
the Administrator of the Federal Aviation Administrator may
carry out a pilot program under which the Administrator may
transfer ownership, operating, and maintenance responsibilities
for airport terminal area air navigation equipment to sponsors
of not more than 10 airports.
(b) Terms and Conditions of Transfer for Airport Sponsors.--
As a condition of participating in this pilot program the
sponsor shall agree that the sponsor will--
(1) operate and maintain all of the air navigation
equipment that is subject to this section at the
airport in accordance with standards established by the
Administrator;
(2) permit the Administrator or a person designated
by the Administrator to conduct inspections of the air
navigation equipment under a schedule established by
the Administrator; and
(3) acquire and maintain new air navigation equipment
as needed to replace facilities that have to be
replaced at the end of their useful life or to meet new
standards established by the Administrator.
(c) Terms and Conditions of Transfer for the Administrator.--
When the Administrator approves a sponsor's participation in
this pilot program, the Administrator shall--
(1) transfer, at no cost to the sponsor, the title
and ownership of the air navigation equipment
facilities approved for transfer under this program;
and
(2) transfer, at no cost to the sponsor, the
government's property interest in the land on which the
air navigation facilities transferred under paragraph
(1) are located.
(d) Treatment of Airport Costs Under Pilot Program.--Upon
transfer by the Administrator, any costs incurred by the
airport for ownership and maintenance of the equipment
transferred under this section shall be considered a cost of
providing airfield facilities and services under standards and
guidelines issued by the Secretary under section 47129(b)(2)
and may be recovered in rates and charges assessed for use of
the airfield.
(e) Definitions.--In this section:
(1) Sponsor.--The term ``sponsor'' has the meaning
given that term in section 40102.
(2) Terminal area air navigation equipment.--The term
``terminal area air navigation equipment'' means an air
navigation facility under section 40102, other than
buildings used for air traffic control functions, that
exists to provide approach and landing guidance to
aircraft.
(f) Guidelines.--The Administrator shall issue advisory
guidelines on the implementation of the program. The guidelines
shall not be subject to administrative rulemaking requirements
under subchapter II of chapter 5 of title 5.
Sec. 44519. ADS-B support pilot program
(a) In General.--The Secretary may carry out a pilot program
to support non-Federal acquisition of National Airspace System
compliant Automatic Dependent Surveillance-Broadcast (ADS-B)
ground stations if--
(1) the Secretary determines that acquisition of the
ground stations benefits the improvement of safety or
capacity in the National Airspace System;
(2) the ground stations provide the required transmit
and receive data formats consistent with the National
Airspace System architecture at the appropriate service
delivery point; and
(3) the ground stations acquired under this program
are supplemental to ground stations established under
programs administered by the Administrator of the
Federal Aviation Administration.
(b) Project Grants.--
(1) For purposes of carrying out the pilot program
and notwithstanding the requirements of section
47114(d), the Secretary may make a project grant out of
funds apportioned under section 47114(d)(2) to not more
than 10 eligible sponsors to acquire and install ADS-B
ground stations in order to serve any public-use
airport.
(2) The Secretary shall establish procurement
procedures applicable to grants issued under this
section. The procedures shall permit the sponsor to
carry out the project using Federal Aviation
Administration contracts. The procedures established by
the Secretary may provide for the direct reimbursement
(including administrative costs) of the Administrator
by the sponsor using grant funds under this section,
for the ordering of such equipment and its
installation, or for the direct ordering of such
equipment and its installation by the sponsor, using
such grant funds, from the suppliers with which the
Administrator has contracted.
(c) Matching Requirement.--The amount of a grant to an
eligible sponsor under subsection (b) may not exceed 90 percent
of the costs of the acquisition and installation of the ground
support equipment.
(d) Definitions.--In this section:
(1) ADS-B ground station.--The term ``ADS-B ground
station'' means electronic equipment that provides for
ADS-B reception and broadcast services.
(2) Eligible sponsor.--The term ``eligible sponsor''
means a State or any consortium of 2 or more State or
local governments meeting the definition of a sponsor
under section 47102 of this title.
SUBTITLE VII--AVIATION PROGRAMS
PART A--AIR COMMERCE AND SAFETY
SUBPART III--SAFETY
CHAPTER 447--SAFETY REGULATION
Sec. 44703. Airman certificates
(a) General.--The Administrator of the Federal Aviation
Administration shall issue an airman certificate to an
individual when the Administrator finds, after investigation,
that the individual is qualified for, and physically able to
perform the duties related to, the position to be authorized by
the certificate.
(b) Contents.--(1) An airman certificate shall--
(A) be numbered and recorded by the Administrator of
the Federal Aviation Administration;
(B) contain the name, address, and description of the
individual to whom the certificate is issued;
(C) contain terms the Administrator decides are
necessary to ensure safety in air commerce, including
terms on the duration of the certificate, periodic or
special examinations, and tests of physical fitness;
(D) specify the capacity in which the holder of the
certificate may serve as an airman with respect to an
aircraft; and
(E) designate the class the certificate covers.
(2) A certificate issued to a pilot serving in scheduled air
transportation shall have the designation ``airline transport
pilot'' of the appropriate class.
(c) Public Information.--
(1) In general.--Subject to paragraph (2) and
notwithstanding any other provision of law, the
information contained in the records of contents of any
airman certificate issued under this section that is
limited to an airman's name, address, and ratings held
shall be made available to the public after the 120th
day following the date of the enactment of the Wendell
H. Ford Aviation Investment and Reform Act for the 21st
Century.
(2) Opportunity to withhold information.--Before
making any information concerning an airman available
to the public under paragraph (1), the airman shall be
given an opportunity to elect that the information not
be made available to the public.
(3) Development and implementation of program.--Not
later than 60 days after the date of the enactment of
the Wendell H. Ford Aviation Investment and Reform Act
for the 21st Century, the Administrator shall develop
and implement, in cooperation with representatives of
the aviation industry, a one-time written notification
to airmen to set forth the implications of making
information concerning an airman available to the
public under paragraph (1) and to carry out paragraph
(2). The Administrator shall also provide such written
notification to each individual who becomes an airman
after such date of enactment.
(d) Appeals.--(1) An individual whose application for the
issuance or renewal of an airman certificate has been denied
may appeal the denial to the National Transportation Safety
Board, except if the individual holds a certificate that--
(A) is suspended at the time of denial; or
(B) was revoked within one year from the date of the
denial.
(2) The Board shall conduct a hearing on the appeal at a
place convenient to the place of residence or employment of the
applicant. The Board is not bound by findings of fact of the
Administrator of the Federal Aviation Administration but is
bound by all validly adopted interpretations of laws and
regulations the Administrator carries out unless the Board
finds an interpretation is arbitrary, capricious, or otherwise
not according to law. At the end of the hearing, the Board
shall decide whether the individual meets the applicable
regulations and standards. The Administrator is bound by that
decision.
(3) Judicial review.--A person substantially affected by an
order of the Board under this subsection, or the Administrator
when the Administrator decides that an order of the Board will
have a significant adverse impact on carrying out this part,
may obtain judicial review of the order under section 46110 of
this title. The Administrator shall be made a party to the
judicial review proceedings. The findings of fact of the Board
in any such case are conclusive if supported by substantial
evidence.
(e) Restrictions and Prohibitions.--The Administrator of the
Federal Aviation Administration may--
(1) restrict or prohibit issuing an airman
certificate to an alien; or
(2) make issuing the certificate to an alien
dependent on a reciprocal agreement with the government
of a foreign country.
(f) Controlled Substance Violations.--The Administrator of
the Federal Aviation Administration may not issue an airman
certificate to an individual whose certificate is revoked under
section 44710 of this title except--
(1) when the Administrator decides that issuing the
certificate will facilitate law enforcement efforts;
and
(2) as provided in section 44710(e)(2) of this title.
(g) Modifications in System.--(1) The Administrator of the
Federal Aviation Administration shall make modifications in the
system for issuing airman certificates necessary to make the
system more effective in serving the needs of airmen and
officials responsible for enforcing laws related to the
regulation of controlled substances (as defined in section 102
of the Comprehensive Drug Abuse Prevention and Control Act of
1970 (21 U.S.C. 802)) and related to combating acts of
terrorism. The modifications shall ensure positive and
verifiable identification of each individual applying for or
holding a certificate and shall address at least each of the
following deficiencies in, and abuses of, the existing system:
(A) the use of fictitious names and addresses by
applicants for those certificates.
(B) the use of stolen or fraudulent identification in
applying for those certificates.
(C) the use by an applicant of a post office box or
``mail drop'' as a return address to evade
identification of the applicant's address.
(D) the use of counterfeit and stolen airman
certificates by pilots.
(E) the absence of information about physical
characteristics of holders of those certificates.
(2) The Administrator of the Federal Aviation Administration
shall prescribe regulations to carry out paragraph (1) of this
subsection and provide a written explanation of how the
regulations address each of the deficiencies and abuses
described in paragraph (1). In prescribing the regulations, the
Administrator of the Federal Aviation Administration shall
consult with the Administrator of Drug Enforcement, the
Commissioner of Customs, other law enforcement officials of the
United States Government, representatives of State and local
law enforcement officials, representatives of the general
aviation aircraft industry, representatives of users of general
aviation aircraft, and other interested persons.
(3) For purposes of this section, the term ``acts of
terrorism'' means an activity that involves a violent act or an
act dangerous to human life that is a violation of the criminal
laws of the United States or of any State, or that would be a
criminal violation if committed within the jurisdiction of the
United States or of any State, and appears to be intended to
intimidate or coerce a civilian population to influence the
policy of a government by intimidation or coercion or to affect
the conduct of a government by assassination or kidnaping.
(4) The Administrator is authorized and directed to work with
State and local authorities, and other Federal agencies, to
assist in the identification of individuals applying for or
holding airmen certificates.
(h) Records of Employment of Pilot Applicants.--
(1) In general.--Subject to paragraph (14), before
allowing an individual to begin service as a pilot, an
air carrier shall request and receive the following
information:
(A) FAA records.--From the Administrator of
the Federal Aviation Administration, records
pertaining to the individual that are
maintained by the Administrator concerning--
(i) current airman certificates
(including airman medical certificates)
and associated type ratings, including
any limitations to those certificates
and ratings; and
(ii) summaries of legal enforcement
actions resulting in a finding by the
Administrator of a violation of this
title or a regulation prescribed or
order issued under this title that was
not subsequently overturned.
(B) Air carrier and other records.--From any
air carrier or other person (except a branch of
the United States Armed Forces, the National
Guard, or a reserve component of the United
States Armed Forces) that has employed the
individual as a pilot of a civil or public
aircraft at any time during the 5-year period
preceding the date of the employment
application of the individual, or from the
trustee in bankruptcy for such air carrier or
person--
(i) records pertaining to the
individual that are maintained by an
air carrier (other than records
relating to flight time, duty time, or
rest time) under regulations set forth
in--
(I) section 121.683 of title
14, Code of Federal
Regulations;
(II) paragraph (A) of section
VI, appendix I, part 121 of
such title;
(III) paragraph (A) of
section IV, appendix J, part
121 of such title;
(IV) section 125.401 of such
title; and
(V) section 135.63(a)(4) of
such title; and
(ii) other records pertaining to the
individual's performance as a pilot
that are maintained by the air carrier
or person concerning--
(I) the training,
qualifications, proficiency, or
professional competence of the
individual, including comments
and evaluations made by a check
airman designated in accordance
with section 121.411, 125.295,
or 135.337 of such title;
(II) any disciplinary action
taken with respect to the
individual that was not
subsequently overturned; and
(III) any release from
employment or resignation,
termination, or
disqualification with respect
to employment.
(C) National driver register records.--In
accordance with section 30305(b)(8) of this
title, from the chief driver licensing official
of a State, information concerning the motor
vehicle driving record of the individual.
(2) Written consent; release from liability.--An air
carrier making a request for records under paragraph
(1)--
(A) shall be required to obtain written
consent to the release of those records from
the individual that is the subject of the
records requested; and
(B) may, notwithstanding any other provision
of law or agreement to the contrary, require
the individual who is the subject of the
records to request to execute a release from
liability for any claim arising from the
furnishing of such records to or the use of
such records by such air carrier (other than a
claim arising from furnishing information known
to be false and maintained in violation of a
criminal statute).
(3) 5-year reporting period.--A person shall not
furnish a record in response to a request made under
paragraph (1) if the record was entered more than 5
years before the date of the request, unless the
information concerns a revocation or suspension of an
airman certificate or motor vehicle license that is in
effect on the date of the request.
(4) Requirement to maintain records.--The
Administrator and air carriers shall maintain pilot
records described in paragraphs (1)(A) and (1)(B) for a
period of at least 5 years.
(5) Receipt of consent; provision of information.--A
person shall not furnish a record in response to a
request made under paragraph (1) without first
obtaining a copy of the written consent of the
individual who is the subject of the records requested;
except that, for purposes of paragraph (15), the
Administrator may allow an individual designated by the
Administrator to accept and maintain written consent on
behalf of the Administrator for records requested under
paragraph (1)(A). A person who receives a request for
records under this subsection shall furnish a copy of
all of such requested records maintained by the person
not later than 30 days after receiving the request.
(6) Right to receive notice and copy of any record
furnished.--A person who receives a request for records
under paragraph (1) shall provide to the individual who
is the subject of the records--
(A) on or before the 20th day following the
date of receipt of the request, written notice
of the request and of the individual's right to
receive a copy of such records; and
(B) in accordance with paragraph (10), a copy
of such records, if requested by the
individual.
(7) Reasonable charges for processing requests and
furnishing copies.--A person who receives a request
under paragraph (1) or (6) may establish a reasonable
charge for the cost of processing the request and
furnishing copies of the requested records.
(8) Standard forms.--The Administrator shall
promulgate--
(A) standard forms that may be used by an air
carrier to request records under paragraph (1);
and
(B) standard forms that may be used by an air
carrier to--
(i) obtain the written consent of the
individual who is the subject of a
request under paragraph (1); and
(ii) inform the individual of--
(I) the request; and
(II) the individual right of
that individual to receive a
copy of any records furnished
in response to the request.
(9) Right to correct inaccuracies.--An air carrier
that maintains or requests and receives the records of
an individual under paragraph (1) shall provide the
individual with a reasonable opportunity to submit
written comments to correct any inaccuracies contained
in the records before making a final hiring decision
with respect to the individual.
(10) Right of pilot to review certain records.--
Notwithstanding any other provision of law or
agreement, an air carrier shall, upon written request
from a pilot who is or has been employed by such
carrier, make available, within a reasonable time, but
not later than 30 days after the date of the request,
to the pilot for review, any and all employment records
referred to in paragraph (1)(B)(i) or (ii) pertaining
to the employment of the pilot.
(11) Privacy protections.--An air carrier that
receives the records of an individual under paragraph
(1) may use such records only to assess the
qualifications of the individual in deciding whether or
not to hire the individual as a pilot. The air carrier
shall take such actions as may be necessary to protect
the privacy of the pilot and the confidentiality of the
records, including ensuring that information contained
in the records is not divulged to any individual that
is not directly involved in the hiring decision.
(12) Periodic review.--Not later than 18 months after
the date of the enactment of the Pilot Records
Improvement Act of 1996, and at least once every 3
years thereafter, the Administrator shall transmit to
Congress a statement that contains, taking into account
recent developments in the aviation industry--
(A) recommendations by the Administrator
concerning proposed changes to Federal Aviation
Administration records, air carrier records,
and other records required to be furnished
under subparagraphs (A) and (B) of paragraph
(1); or
(B) reasons why the Administrator does not
recommend any proposed changes to the records
referred to in subparagraph (A).
(13) Regulations.--The Administrator may prescribe
such regulations as shall be necessary--
(A) to protect--
(i) the personal privacy of any
individual whose records are requested
under paragraph (1) and disseminated
under paragraph (15); and
(ii) the confidentiality of those
records;
(B) to preclude the further dissemination of
records received under paragraph (1) by the
person who requested those records; and
(C) to ensure prompt compliance with any
request made under paragraph (1).
(14) Special rules with respect to certain pilots.--
(A) Pilots of certain small aircraft.--
Notwithstanding paragraph (1), an air carrier,
before receiving information requested about an
individual under paragraph (1), may allow the
individual to begin service for a period not to
exceed 90 days as a pilot of an aircraft with a
maximum payload capacity (as defined in section
119.3 of title 14, Code of Federal Regulations)
of 7,500 pounds or less, or a helicopter, on a
flight that is not a scheduled operation (as
defined in such section). Before the end of the
90-day period, the air carrier shall obtain and
evaluate such information. The contract between
the carrier and the individual shall contain a
term that provides that the continuation of the
individual's employment, after the last day of
the 90-day period, depends on a satisfactory
evaluation.
(B) Good faith exception.--Notwithstanding
paragraph (1), an air carrier, without
obtaining information about an individual under
paragraph (1)(B) from an air carrier or other
person that no longer exists or from a foreign
government or entity that employed the
individual, may allow the individual to begin
service as a pilot if the air carrier required
to request the information has made a
documented good faith attempt to obtain such
information.
(15) Electronic access to FAA records.--For the
purpose of increasing timely and efficient access to
Federal Aviation Administration records described in
paragraph (1), the Administrator may allow, under terms
established by the Administrator, an individual
designated by the air carrier to have electronic access
to a specified database containing information about
such records. The terms shall limit such access to
instances in which information in the database is
required by the designated individual in making a
hiring decision concerning a pilot applicant and shall
require that the designated individual provide
assurances satisfactory to the Administrator that
information obtained using such access will not be used
for any purpose other than making the hiring decision.
(i) Limitation on Liability; Preemption of State Law.--
(1) Limitation on liability.--No action or proceeding
may be brought by or on behalf of an individual who has
applied for or is seeking a position with an air
carrier as a pilot and who has signed a release from
liability, as provided for under paragraph (2),
against--
(A) the air carrier requesting the records of
that individual under subsection (h)(1);
(B) a person who has complied with such
request;
(C) a person who has entered information
contained in the individual's records; or
(D) an agent or employee of a person
described in subparagraph (A) or (B);
in the nature of an action for defamation, invasion of
privacy, negligence, interference with contract, or
otherwise, or under any Federal or State law with
respect to the furnishing or use of such records in
accordance with subsection (h).
(2) Preemption.--No State or political subdivision
thereof may enact, prescribe, issue, continue in
effect, or enforce any law (including any regulation,
standard, or other provision having the force and
effect of law) that prohibits, penalizes, or imposes
liability for furnishing or using records in accordance
with subsection (h).
(3) Provision of knowingly false information.--
Paragraphs (1) and (2) shall not apply with respect to
a person who furnishes information in response to a
request made under subsection (h)(1), that--
(A) the person knows is false; and
(B) was maintained in violation of a criminal
statute of the United States.
(j) Limitation on Statutory Construction.--Nothing in
subsection (h) shall be construed as precluding the
availability of the records of a pilot in an investigation or
other proceeding concerning an accident or incident conducted
by the Administrator, the National Transportation Safety Board,
or a court.
Sec. 44704. Type certificates, production certificates, airworthiness
certificates and design organization certificates
(a) Type Certificates.--(1) The Administrator of the Federal
Aviation Administration shall issue a type certificate for an
aircraft, aircraft engine, or propeller, or for an appliance
specified under paragraph (2)(A) of this subsection when the
Administrator finds that the aircraft, aircraft engine,
propeller, or appliance is properly designed and manufactured,
performs properly, and meets the regulations and minimum
standards prescribed under section 44701(a) of this title. On
receiving an application for a type certificate, the
Administrator shall investigate the application and may conduct
a hearing. The Administrator shall make, or require the
applicant to make, tests the Administrator considers necessary
in the interest of safety.
(2) The Administrator may--
(A) specify in regulations those appliances that
reasonably require a type certificate in the interest
of safety;
(B) include in a type certificate terms required in
the interest of safety; and
(C) record on the certificate a numerical
specification of the essential factors related to the
performance of the aircraft, aircraft engine, or
propeller for which the certificate is issued.
(3) If the holder of a type certificate agrees to permit
another person to use the certificate to manufacture a new
aircraft, aircraft engine, propeller, or appliance, the holder
shall provide the other person with written evidence, in a form
acceptable to the Administrator, of that agreement. Such other
person may manufacture a new aircraft, aircraft engine,
propeller, or appliance based on a type certificate only if
such other person is the holder of the type certificate or has
permission from the holder.
(4) Limitation for aircraft manufactured before August 5,
2004.--Paragraph (3) shall not apply to a person who began the
manufacture of an aircraft before August 5, 2004, and who
demonstrates to the satisfaction of the Administrator that such
manufacture began before August 5, 2004, if the name of the
holder of the type certificate for the aircraft does not appear
on the airworthiness certificate or identification plate of the
aircraft. The holder of the type certificate for the aircraft
shall not be responsible for the continued airworthiness of the
aircraft. A person may invoke the exception provided by this
paragraph with regard to the manufacture of only one aircraft.
(5) Release of data.--
(A) Notwithstanding any other provision of law, the
Administrator may designate, without the consent of the
owner of record, engineering data in the agency's
possession related to a type certificate or a
supplemental type certificate for an aircraft, engine,
propeller or appliance as public data, and therefore
releasable, upon request, to a person seeking to
maintain the airworthiness of such product, if the
Administrator determines that--
(i) the certificate containing the requested
data has been inactive for 3 years;
(ii) the owner of record, or the owner of
record's heir, of the type certificate or
supplemental certificate has not been located
despite a search of due diligence by the
agency; and
(iii) the designation of such data as public
data will enhance aviation safety.
(B) In this section, the term `engineering data'
means type design drawings and specifications for the
entire product or change to the product, including the
original design data, and any associated supplier data
for individual parts or components approved as part of
the particular aeronautical product certificate.
(b) Supplemental Type Certificates.--
(1) Issuance.--The Administrator may issue a type
certificate designated as a supplemental type
certificate for a change to an aircraft, aircraft
engine, propeller, or appliance.
(2) Contents.--A supplemental type certificate issued
under paragraph (1) shall consist of the change to the
aircraft, aircraft engine, propeller, or appliance with
respect to the previously issued type certificate for
the aircraft, aircraft engine, propeller, or appliance.
(3) Requirement.--If the holder of a supplemental
type certificate agrees to permit another person to use
the certificate to modify an aircraft, aircraft engine,
propeller, or appliance, the holder shall provide the
other person with written evidence, in a form
acceptable to the Administrator, of that agreement. A
person may change an aircraft, aircraft engine,
propeller, or appliance based on a supplemental type
certificate only if the person requesting the change is
the holder of the supplemental type certificate or has
permission from the holder to make the change.
(c) Production Certificates.--The Administrator shall issue a
production certificate authorizing the production of a
duplicate of an aircraft, aircraft engine, propeller, or
appliance for which a type certificate has been issued when the
Administrator finds the duplicate will conform to the
certificate. On receiving an application, the Administrator
shall inspect, and may require testing of, a duplicate to
ensure that it conforms to the requirements of the certificate.
The Administrator may include in a production certificate terms
required in the interest of safety.
(d) Airworthiness Certificates.--(1) The registered owner of
an aircraft may apply to the Administrator for an airworthiness
certificate for the aircraft. The Administrator shall issue an
airworthiness certificate when the Administrator finds that the
aircraft conforms to its type certificate and, after
inspection, is in condition for safe operation. The
Administrator shall register each airworthiness certificate and
may include appropriate information in the certificate. The
certificate number or other individual designation the
Administrator requires shall be displayed on the aircraft. The
Administrator may include in an airworthiness certificate terms
required in the interest of safety.
(2) A person applying for the issuance or renewal of an
airworthiness certificate for an aircraft for which ownership
has not been recorded under section 44107 or 44110 of this
title must submit with the application information related to
the ownership of the aircraft the Administrator decides is
necessary to identify each person having a property interest in
the aircraft and the kind and extent of the interest.
(e) Design Organization Certificates.--
(1) Issuance.--[Beginning 7 years after the date of
enactment of this subsection,] Effective 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.
(2) Applications.--On receiving an application for a
design organization certificate, the Administrator
shall examine and rate the design organization
submitting the application, in accordance with
regulations to be prescribed by the Administrator, to
determine whether the design organization has adequate
engineering, design, and [testing] production
capabilities, standards, and safeguards to ensure that
the product being certificated is properly designed and
manufactured, performs properly, and meets the
regulations and minimum standards prescribed under
section 44701(a).
[(3) Issuance of type certificates based on design
organization certification.--The Administrator may rely
on certifications of compliance by a design
organization when making a finding under subsection
(a).]
(3) Issuance of certificate based on design
organization certification.--The Administrator may rely
on the Design Organization for certification of
compliance under this section.
(4) Public safety.--The Administrator shall include
in a design organization certificate issued under this
subsection terms required in the interest of safety.
(5) No effect on power of revocation.--Nothing in
this subsection affects the authority of the Secretary
of Transportation to revoke a certificate.
* * * * * * *
Sec. 44728. Flight attendant certification
(a) Certificate Required.--
(1) In general.--No person may serve as a flight
attendant aboard an aircraft of an air carrier unless
that person holds a certificate of demonstrated
proficiency from the Administrator of the Federal
Aviation Administration. Upon the request of the
Administrator or an authorized representative of the
National Transportation Safety Board or another Federal
agency, a person who holds such a certificate shall
present the certificate for inspection within a
reasonable period of time after the date of the
request.
(2) Special rule for current flight attendants.--An
individual serving as a flight attendant on the
effective date of this section may continue to serve
aboard an aircraft as a flight attendant until
completion by that individual of the required recurrent
or requalification training and subsequent
certification under this section.
(3) Treatment of flight attendant after
notification.--On the date that the Administrator is
notified by an air carrier that an individual has the
demonstrated proficiency to be a flight attendant, the
individual shall be treated for purposes of this
section as holding a certificate issued under the
section.
(b) Issuance of Certificate.--The Administrator shall issue a
certificate of demonstrated proficiency under this section to
an individual after the Administrator is notified by the air
carrier that the individual has successfully completed all the
training requirements for flight attendants approved by the
Administrator.
(c) Designation of Person To Determine Successful Completion
of Training.--In accordance with part 183 of chapter \1\ 14,
Code of Federal Regulation, the director of operations of an
air carrier is designated to determine that an individual has
successfully completed the training requirements approved by
the Administrator for such individual to serve as a flight
attendant.
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\1\ So in original. Probably should read title.
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(d) Specifications Relating to Certificates.--Each
certificate issued under this section shall--
(1) be numbered and recorded by the Administrator;
(2) contain the name, address, and description of the
individual to whom the certificate is issued;
(3) is similar in size and appearance to certificates
issued to airmen;
(4) contain the airplane group for which the
certificate is issued; and
(5) be issued not later than 120 days after the
Administrator receives notification from the air
carrier of demonstrated proficiency and, in the case of
an individual serving as flight attendant on the
effective date of this section, not later than 1 year
after such effective date.
(e) Approval of Training Programs.--Air carrier flight
attendant training programs shall be subject to approval by the
Administrator. All flight attendant training programs approved
by the Administrator in the 1-year period ending on the date of
enactment of this section shall be treated as providing a
demonstrated proficiency for purposes of meeting the
certification requirements of this section.
(f) Minimum English Language Skills.--
(1) In general.--No certificate holder may use any
person to serve, nor may any person serve, as a flight
attendant under this part, unless that person has the
ability to read, speak, and write English well enough
to--
(A) read material written in English and
comprehend the information;
(B) speak and understand English
sufficiently to provide direction to, and
understand and answer questions from, English-
speaking individuals;
(C) write incident reports and statements
and log entries and statements; and
(D) carry out written and oral instructions
regarding the proper performance of their
duties.
(2) Foreign flights.--The requirements of paragraph
(1) do not apply to service as a flight attendant on a
flight operated by a certificate holder solely between
points outside the United States.
[(f)] (g) Flight Attendant Defined.--In this section, the
term ``flight attendant'' means an individual working as a
flight attendant in the cabin of an aircraft that has 20 or
more seats and is being used by an air carrier to provide air
transportation.
PART A--AIR COMMERCE AND SAFETY
SUBPART III--SAFETY
CHAPTER 453--FEES
Sec. 45301. General provisions
(a) Schedule of Fees.--The Administrator shall establish a
schedule of new fees, and a collection process for such fees,
for the following services provided by the Administration:
(1) Air traffic control and related services provided
to aircraft other than military and civilian aircraft
of the United States government or of a foreign
government that neither take off from, nor land in, the
United States.
(2) Services (other than air traffic control
services) provided to a foreign government or services
provided to any entity obtaining services outside the
United States, except that the Administrator shall not
impose fees in any manner for production-certification
related service performed outside the United States
pertaining to aeronautical products manufactured
outside the United States.
[(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) Limitations.--
(1) In general.--In establishing fees under
subsection (a), the Administrator shall ensure that the
fees required by subsection (a) are reasonably related
to the Administration's costs, as determined by the
Administrator, of providing the services rendered.
Services for which costs may be recovered include the
costs of air traffic control, navigation, weather
services, training, and emergency services which are
available to facilitate safe transportation over the
United States, and other services provided by the
Administrator or by programs financed by the
Administrator to flights that neither take off nor land
in the United States. The determination of such costs
by the Administrator is not subject to judicial review.
(2) Adjustment of fees.--The Administrator shall
adjust the overflight fees established by subsection
(a)(1) by expedited rulemaking and begin collections
under the adjusted fees by October 1, 2008. In
developing the adjusted overflight fees, the
Administrator shall seek and consider the
recommendations offered by the Aviation Rulemaking
Committee for Overflight Fees that are intended to
ensure that overflight fees are reasonably related to
the Administrator's costs of providing air traffic
control and related services to overflights. In
addition, the Administrator may periodically modify the
fees established under this section either on the
Administrator's own initiative or on a recommendation
from the Air Traffic Control Modernization Board.
(3) Cost data.--The adjustment of overflight fees
under paragraph (2) shall be based on the costs to the
Administration of providing the air traffic control and
related activities, services, facilities, and equipment
using the available data derived from the
Administration's cost accounting system and cost
allocation system to users, as well as budget and
operational data.
(4) Aircraft altitude.--Nothing in this section shall
require the Administrator to take into account aircraft
altitude in establishing any fee for aircraft
operations in en route or oceanic airspace.
(5) Administrative provisions.--Section 48115(c)
shall apply to the imposition and collection of
overflight fees established under this section. For the
purpose of applying that section to such fees, any
reference in section 48515(c) to ``surcharge'' or
``surcharges'' is deemed to refer to ``overflight fee''
or ``overflight fees'', respectively.
(6) Costs defined.--In this subsection, the term
``costs'' means those costs associated with the
operation, maintenance, debt service, and overhead
expenses of the services provided and the facilities
and equipment used in such services, including the
projected costs for the period during which the
services will be provided.
(7) 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.
(c) Use of Experts and Consultants.--In developing the
system, the Administrator may consult with such nongovernmental
experts as the Administrator may employ and the Administrator
may utilize the services of experts and consultants under
section 3109 of title 5 without regard to the limitation
imposed by the last sentence of section 3109(b) of such title,
and may contract on a sole source basis, notwithstanding any
other provision of law to the contrary. Notwithstanding any
other provision of law to the contrary, the Administrator may
retain such experts under a contract awarded on a basis other
than a competitive basis and without regard to any such
provisions requiring competitive bidding or precluding sole
source contract authority.
(d) Production-Certification Related Service Defined.--In
this section, the term ``production-certification related
service'' has the meaning given that term in appendix C of part
187 of title 14, Code of Federal Regulations.
SUBTITLE VII--AVIATION PROGRAMS
PART B--AIRPORT DEVELOPMENT AND NOISE
CHAPTER 471--AIRPORT DEVELOPMENT
SUBCHAPTER I--AIRPORT IMPROVEMENT
Sec. 47102. Definitions
In this subchapter--
(1) ``air carrier airport'' means a public airport
regularly served by--
(A) an air carrier certificated by the
Secretary of Transportation under section 41102
of this title (except a charter air carrier);
or
(B) at least one air carrier--
(i) operating under an exemption from
section 41101(a)(1) of this title that
the Secretary grants; and
(ii) having at least 2,500 passenger
boardings at the airport during the
prior calendar year.
(2) ``airport''--
(A) means--
(i) an area of land or water used or
intended to be used for the landing and
taking off of aircraft;
(ii) an appurtenant area used or
intended to be used for airport
buildings or other airport facilities
or rights of way; and
(iii) airport buildings and
facilities located in any of those
areas; and
(B) includes a heliport.
(3) ``airport development'' means the following
activities, if undertaken by the sponsor, owner, or
operator of a public-use airport:
(A) constructing, repairing, or improving a
public-use airport, including--
(i) removing, lowering, relocating,
marking, and lighting an airport
hazard; and
(ii) preparing a plan or
specification, including carrying out a
field investigation.
(B) acquiring for, or installing at, a
public-use airport--
(i) a navigation aid or another aid
(including a precision approach system)
used by aircraft for landing at or
taking off from the airport, including
preparing the site as required by the
acquisition or installation;
(ii) safety or security equipment,
including explosive detection devices,
universal access systems, and emergency
call boxes, the Secretary requires by
regulation for, or approves as
contributing significantly to, the
safety or security of individuals and
property at the airport and integrated
in-pavement lighting systems for
runways and taxiways and other runway
and taxiway incursion prevention
devices;
(iii) equipment to remove snow, to
measure runway surface friction, or for
aviation-related weather reporting,
including closed circuit weather
surveillance equipment if the airport
is located in Alaska;
(iv) firefighting and rescue
equipment at an airport that serves
scheduled passenger operations of air
carrier aircraft designed for more than
20 passenger seats;
(v) aircraft deicing equipment and
structures (except aircraft deicing
fluids and storage facilities for the
equipment and fluids);
(vi) interactive training systems;
(vii) windshear detection equipment
that is certified by the Administrator
of the Federal Aviation Administration;
(viii) stainless steel adjustable
lighting extensions approved by the
Administrator;
(ix) engineered materials arresting
systems as described in the Advisory
Circular No. 150/5220-22 published by
the Federal Aviation Administration on
August 21, 1998, including any revision
to the circular; and
(x) replacement of baggage conveyor
systems, and reconfiguration of
terminal baggage areas, that the
Secretary determines are necessary to
install bulk explosive detection
devices; except that such activities
shall be eligible for funding under
this subchapter only using amounts
apportioned under section 47114.
(C) acquiring an interest in land or
airspace, including land for future airport
development, that is needed--
(i) to carry out airport development
described in subclause (A) or (B) of
this clause; or
(ii) to remove or mitigate an
existing airport hazard or prevent or
limit the creation of a new airport
hazard.
(D) acquiring land for, or constructing, a
burn area training structure on or off the
airport to provide live fire drill training for
aircraft rescue and firefighting personnel
required to receive the training under
regulations the Secretary prescribes, including
basic equipment and minimum structures to
support the training under standards the
Administrator of the Federal Aviation
Administration prescribes.
(E) relocating after December 31, 1991, an
air traffic control tower and any navigational
aid (including radar) if the relocation is
necessary to carry out a project approved by
the Secretary under this subchapter or under
section 40117.
(F) constructing, reconstructing, repairing,
or improving an airport, or purchasing capital
equipment for an airport, if necessary for
compliance with the responsibilities of the
operator or owner of the airport under the
Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.), the Clean Air Act (42
U.S.C. 7401 et seq.), and the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.),
except constructing or purchasing capital
equipment that would benefit primarily a
revenue-producing area of the airport used by a
nonaeronautical business.
(G) acquiring land for, or work necessary to
construct, a pad suitable for deicing aircraft
before takeoff at a commercial service airport,
including constructing or reconstructing paved
areas, drainage collection structures,
treatment and discharge systems, appropriate
lighting, paved access for deicing vehicles and
aircraft, but not including acquiring aircraft
deicing fluids or constructing or
reconstructing storage facilities for aircraft
deicing equipment or fluids.
(H) routine work to preserve and extend the
useful life of runways, taxiways, and aprons at
nonhub airports and airports that are not
primary airports, under guidelines issued by
the Administrator of the Federal Aviation
Administration.
(I) constructing, reconstructing, or
improving an airport, or purchasing nonrevenue
generating capital equipment to be owned by an
airport, for the purpose of transferring
passengers, cargo, or baggage between the
aeronautical and ground transportation modes on
airport property.
(J) constructing an air traffic control tower
or acquiring and installing air traffic
control, communications, and related equipment
at an air traffic control tower under the terms
specified in section 47124(b)(4).
(K) work necessary to construct or modify
airport facilities to provide low-emission fuel
systems, gate electrification, and other
related air quality improvements at a
commercial service airport if the airport is
located in an air quality nonattainment or
maintenance area (as defined in sections 171(2)
and 175A of the Clean Air Act (42 U.S.C.
7501(2); 7505a) and if such project will result
in an airport receiving appropriate emission
credits, as described in section 47139.
(L) a project for the acquisition or
conversion of vehicles and ground support
equipment, owned by a commercial service
airport, to low-emission technology, if the
airport is located in an air quality
nonattainment or maintenance area (as defined
in sections 171(2) and 175A of the Clean Air
Act (42 U.S.C. 7501(2); 7505a) and if such
project will result in an airport receiving
appropriate emission credits as described in
section 47139.
(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.
(4) ``airport hazard'' means a structure or object of
natural growth located on or near a public-use airport,
or a use of land near the airport, that obstructs or
otherwise is hazardous to the landing or taking off of
aircraft at or from the airport.
(5) ``airport planning'' means planning as defined by
regulations the Secretary prescribes and includes
integrated airport system planning.
(6) ``amount made available under section 48103'' or
``amount newly made available'' means the amount
authorized for grants under section 48103 as that
amount may be limited in that year by a subsequent law,
but as determined without regard to grant obligation
recoveries made in that year or amounts covered by
section 47107(f).
(7) ``commercial service airport'' means a public
airport in a State that the Secretary determines has at
least 2,500 passenger boardings each year and is
receiving scheduled passenger aircraft service.
(8) ``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) identifying system needs;
(B) developing an estimate of systemwide
development costs;
(C) conducting studies, surveys, and other
planning actions, including those related to
airport access, needed to decide which
aeronautical needs should be met by a system of
airports; and
(D) standards prescribed by a State, except
standards for safety of approaches, for airport
development at nonprimary public-use airports.
(9) ``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) ``large hub airport'' means a commercial service
airport that has at least 1.0 percent of the passenger
boardings.
(11) ``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) ``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) ``nonhub airport'' means a commercial service
airport that has less than 0.05 percent of the
passenger boardings.
(14) ``passenger boardings''--
(A) means, unless the context indicates
otherwise, revenue passenger boardings in the
United States in the prior calendar year on an
aircraft in service in air commerce, as the
Secretary determines under regulations the
Secretary prescribes; and
(B) includes passengers who continue on an
aircraft in international flight that stops at
an airport in the 48 contiguous States, Alaska,
or Hawaii for a nontraffic purpose.
(15) ``primary airport'' means a commercial service
airport the Secretary determines to have more than
10,000 passenger boardings each year.
(16) ``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) ``project cost'' means a cost involved in
carrying out a project.
(18) ``project grant'' means a grant of money the
Secretary makes to a sponsor to carry out at least one
project.
(19) ``public agency'' means--
(A) a State or political subdivision of a
State;
(B) a tax-supported organization; or
(C) an Indian tribe or pueblo.
(20) ``public airport'' means an airport used or
intended to be used for public purposes--
(A) that is under the control of a public
agency; and
(B) of which the area used or intended to be
used for the landing, taking off, or surface
maneuvering of aircraft is publicly owned.
(21) ``public-use airport'' means--
(A) a public airport; or
(B) a privately-owned airport used or
intended to be used for public purposes that
is--
(i) a reliever airport; or
(ii) determined by the Secretary to
have at least 2,500 passenger boardings
each year and to receive scheduled
passenger aircraft service.
(22) ``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.
(23) ``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) ``sponsor'' means--
(A) a public agency that submits to the
Secretary under this subchapter an application
for financial assistance; and
(B) a private owner of a public-use airport
that submits to the Secretary under this
subchapter an application for financial
assistance for the airport.
(25) ``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.
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] aeronautics.
[(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;
[(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,] operations and rotary wing aircraft
operations.
(c) Availability of Domestic Military Airports and Airport
Facilities.--To the extent possible, the Secretary of Defense
shall make domestic military airports and airport facilities
available for civil use. In advising the Secretary of
Transportation under subsection (a) of this section, the
Secretary of Defense shall indicate the extent to which
domestic military airports and airport facilities are available
for civil use.
(d) Publication.--The Secretary of Transportation shall
publish the [status of the] plan every 2 years.
* * * * * * *
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) the airport will be available for public use on
reasonable conditions and without unjust
discrimination;
(2) air carriers making similar use of the airport
will be subject to substantially comparable charges--
(A) for facilities directly and substantially
related to providing air transportation; and
(B) regulations and conditions, except for
differences based on reasonable
classifications, such as between--
(i) tenants and nontenants; and
(ii) signatory and nonsignatory
carriers;
(3) the airport operator will not withhold
unreasonably the classification or status of tenant or
signatory from an air carrier that assumes obligations
substantially similar to those already imposed on air
carriers of that classification or status;
(4) a person providing, or intending to provide,
aeronautical services to the public will not be given
an exclusive right to use the airport, with a right
given to only one fixed-base operator to provide
services at an airport deemed not to be an exclusive
right if--
(A) the right would be unreasonably costly,
burdensome, or impractical for more than one
fixed-base operator to provide the services;
and
(B) allowing more than one fixed-base
operator to provide the services would require
reducing the space leased under an existing
agreement between the one fixed-base operator
and the airport owner or operator;
(5) fixed-base operators similarly using the airport
will be subject to the same charges;
(6) an air carrier using the airport may service
itself or use any fixed-base operator allowed by the
airport operator to service any carrier at the airport;
(7) the airport and facilities on or connected with
the airport will be operated and maintained suitably,
with consideration given to climatic and flood
conditions;
(8) a proposal to close the airport temporarily for a
nonaeronautical purpose must first be approved by the
Secretary;
(9) appropriate action will be taken to ensure that
terminal airspace required to protect instrument and
visual operations to the airport (including operations
at established minimum flight altitudes) will be
cleared and protected by mitigating existing, and
preventing future, airport hazards;
(10) appropriate action, including the adoption of
zoning laws, has been or will be taken to the extent
reasonable to restrict the use of land next to or near
the airport to uses that are compatible with normal
airport operations;
(11) each of the airport's facilities developed with
financial assistance from the United States Government
and each of the airport's facilities usable for the
landing and taking off of aircraft always will be
available without charge for use by Government aircraft
in common with other aircraft, except that if the use
is substantial, the Government may be charged a
reasonable share, proportionate to the use, of the cost
of operating and maintaining the facility used;
(12) the airport owner or operator will provide,
without charge to the Government, property interests of
the sponsor in land or water areas or buildings that
the Secretary decides are desirable for, and that will
be used for, constructing at Government expense,
facilities for carrying out activities related to air
traffic control or navigation;
(13) the airport owner or operator will maintain a
schedule of charges for use of facilities and services
at the airport--
(A) that will make the airport as self-
sustaining as possible under the circumstances
existing at the airport, including volume of
traffic and economy of collection; and
(B) without including in the rate base used
for the charges the Government's share of costs
for any project for which a grant is made under
this subchapter or was made under the Federal
Airport Act or the Airport and Airway
Development Act of 1970;
(14) the project accounts and records will be kept
using a standard system of accounting that the
Secretary, after consulting with appropriate public
agencies, prescribes;
(15) the airport owner or operator will submit any
annual or special airport financial and operations
reports to the Secretary that the Secretary reasonably
requests and make such reports available to the public;
(16) the airport owner or operator will maintain a
current layout plan of the airport that meets the
following requirements:
(A) the plan will be in a form the Secretary
prescribes;
(B) the Secretary will approve the plan and
any revision or modification before the plan,
revision, or modification takes effect;
(C) the owner or operator will not make or
allow any alteration in the airport or any of
its facilities if the alteration does not
comply with the plan the Secretary approves,
and the Secretary is of the opinion that the
alteration may affect adversely the safety,
utility, or efficiency of the airport; and
(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) eliminate the adverse effect in a
way the Secretary approves; or
(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;] made, except
that, if there is a change in airport
design standards that the Secretary
determines is beyond the owner or
operator's control that requires the
relocation or replacement of an
existing airport facility, the
Secretary, upon the request of the
owner or operator, may grant funds
available under section 47114 to pay
the cost of relocating or replacing
such facility;
(17) each contract and subcontract for program
management, construction management, planning studies,
feasibility studies, architectural services,
preliminary engineering, design, engineering,
surveying, mapping, and related services will be
awarded in the same way that a contract for
architectural and engineering services is negotiated
under chapter 11 of title 40 or an equivalent
qualifications-based requirement prescribed for or by
the sponsor;
(18) the airport and each airport record will be
available for inspection by the Secretary on reasonable
request, and a report of the airport budget will be
available to the public at reasonable times and places;
(19) the airport owner or operator will submit to the
Secretary and make available to the public an annual
report listing in detail--
(A) all amounts paid by the airport to any
other unit of government and the purposes for
which each such payment was made; and
(B) all services and property provided to
other units of government and the amount of
compensation received for provision of each
such service and property;
(20) the airport owner or operator will permit, to
the maximum extent practicable, intercity buses or
other modes of transportation to have access to the
airport, but the sponsor does not have any obligation
under this paragraph, or because of it, to fund special
facilities for intercity bus service or for other modes
of transportation; and
(21) if the airport owner or operator and a person
who owns an aircraft agree that a hangar is to be
constructed at the airport for the aircraft at the
aircraft owner's expense, the airport owner or operator
will grant to the aircraft owner for the hangar a long-
term lease that is subject to such terms and conditions
on the hangar as the airport owner or operator may
impose.
(b) Written Assurances on Use of Revenue.--(1) 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 local taxes on aviation fuel (except taxes in
effect on December 30, 1987) and the revenues generated by a
public airport will be expended for the capital or operating
costs of--
(A) the airport;
(B) the local airport system; or
(C) other local facilities owned or operated by the
airport owner or operator and directly and
substantially related to the air transportation of
passengers or property.
(2) Paragraph (1) of this subsection does 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.
(3) This subsection does not prevent the use of a State tax
on aviation fuel to support a State aviation program or the use
of airport revenue on or off the airport for a noise mitigation
purpose.
(c) Written Assurances on Acquiring Land.--(1) In this
subsection, land is needed for an airport purpose (except a
noise compatibility purpose) if--
(A)(i) the land may be needed for an aeronautical
purpose (including runway protection zone) or serves as
noise buffer land; and
(ii) revenue from interim uses of the land contributes to the
financial self-sufficiency of the airport; and
(B) for land purchased with a grant the owner or
operator received not later than December 30, 1987, the
Secretary of Transportation or the department, agency,
or instrumentality of the Government that made the
grant was notified by the owner or operator of the use
of the land and did not object to the use and the land
is still being used for that purpose.
(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) the owner or operator will dispose of the
land at fair market value at the earliest
practicable time after the land no longer is
needed for a noise compatibility [purpose;]
purpose, which includes serving as noise buffer
land;
(ii) the disposition will be subject to
retaining or reserving an interest in the land
necessary to ensure that the land will be used
in a way that is compatible with noise levels
associated with operating the airport; and
(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; or
(B) if the land was or will be acquired for an
airport purpose (except a noise compatibility
purpose)--
(i) the owner or operator, when the land no
longer is needed for an airport purpose, will
dispose of the land at fair market value or
make available to the Secretary an amount equal
to the Government's proportional share of the
fair market value;
(ii) the disposition will be subject to
retaining or reserving an interest in the land
necessary to ensure that the land will be used
in a way that is compatible with noise levels
associated with operating the airport; and
(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 if another eligible
project does not exist.] reinvested in another
project at the airport or transferred to
another airport as the Secretary prescribes.
(3) In approving the reinvestment or transfer of proceeds
under paragraph (2)(C)(iii), the Secretary shall give
preference, in descending order, to--
(i) reinvestment in an approved noise compatibility
project;
(ii) reinvestment in an approved project that is
eligible for funding under section 47117(e);
(iii) reinvestment in an airport development project
that is eligible for funding under section 47114,
47115, or 47117 and meets the requirements of this
chapter;
(iv) transfer to the sponsor of another public
airport to be reinvested in an approved noise
compatibility project at such airport; and
(v) payment to the Secretary for deposit in the
Airport and Airway Trust Fund established under section
9502 of the Internal Revenue Code of 1986 (26 U.S.C.
9502).
[(3)] (4) Proceeds referred to in paragraph (2)(A)(iii) and
(B)(iii) of this subsection and deposited in the Airport and
Airway Trust Fund are available as provided in subsection (f)
of this section.
(d) Assurances of Continuation as Public-Use Airport.--The
Secretary of Transportation may approve an application under
this subchapter for an airport development project grant for a
privately owned public-use airport only if the Secretary
receives appropriate assurances that the airport will continue
to function as a public-use airport during the economic life
(that must be at least 10 years) of any facility at the airport
that was developed with Government financial assistance under
this subchapter.
(e) Written Assurances of Opportunities for Small Business
Concerns.--(1) 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 the airport
owner or operator will take necessary action to ensure, to the
maximum extent practicable, that at least 10 percent of all
businesses at the airport selling consumer products or
providing consumer services to the public are small business
concerns (as defined by regulations of the Secretary) owned and
controlled by a socially and economically disadvantaged
individual (as defined in section 47113(a) of this title) or
qualified HUBZone small business concerns (as defined in
section 3(p) of the Small Business Act).
(2) An airport owner or operator may meet the percentage goal
of paragraph (1) of this subsection by including any business
operated through a management contract or subcontract. The
dollar amount of a management contract or subcontract with a
disadvantaged business enterprise shall be added to the total
participation by disadvantaged business enterprises in airport
concessions and to the base from which the airport's percentage
goal is calculated. The dollar amount of a management contract
or subcontract with a non-disadvantaged business enterprise and
the gross revenue of business activities to which the
management contract or subcontract pertains may not be added to
this base.
(3) Except as provided in paragraph (4) of this subsection,
an airport owner or operator may meet the percentage goal of
paragraph (1) of this subsection by including the purchase from
disadvantaged business enterprises of goods and services used
in businesses conducted at the airport, but the owner or
operator and the businesses conducted at the airport shall make
good faith efforts to explore all available options to achieve,
to the maximum extent practicable, compliance with the goal
through direct ownership arrangements, including joint ventures
and franchises.
(4)(A) In complying with paragraph (1) of this subsection, an
airport owner or operator shall include the revenues of car
rental firms at the airport in the base from which the
percentage goal in paragraph (1) is calculated.
(B) An airport owner or operator may require a car rental
firm to meet a requirement under paragraph (1) of this
subsection by purchasing or leasing goods or services from a
disadvantaged business enterprise. If an owner or operator
requires such a purchase or lease, a car rental firm shall be
permitted to meet the requirement by including purchases or
leases of vehicles from any vendor that qualifies as a small
business concern owned and controlled by a socially and
economically disadvantaged individual or as a qualified HUBZone
small business concern (as defined in section 3(p) of the Small
Business Act).
(C) This subsection does not require a car rental firm to
change its corporate structure to provide for direct ownership
arrangements to meet the requirements of this subsection.
(5) This subsection does not preempt--
(A) a State or local law, regulation, or policy
enacted by the governing body of an airport owner or
operator; or
(B) the authority of a State or local government or
airport owner or operator to adopt or enforce a law,
regulation, or policy related to disadvantaged business
enterprises.
(6) An airport owner or operator may provide opportunities
for a small business concern owned and controlled by a socially
and economically disadvantaged individual or a qualified
HUBZone small business concern (as defined in section 3(p) of
the Small Business Act) to participate through direct
contractual agreement with that concern.
(7) An air carrier that provides passenger or property-
carrying services or another business that conducts
aeronautical activities at an airport may not be included in
the percentage goal of paragraph (1) of this subsection for
participation of small business concerns at the airport.
(8) Not later than April 29, 1993, the Secretary of
Transportation shall prescribe regulations to carry out this
subsection.
(f) Availability of Amounts.--An amount deposited in the
Airport and Airway Trust Fund under--
(1) subsection (c)(2)(A)(iii) of this section is
available to the Secretary of Transportation to make a
grant for airport development or airport planning under
section 47104 of this title;
(2) subsection (c)(2)(B)(iii) of this section is
available to the Secretary--
(A) to make a grant for a purpose described
in section 47115(b) of this title; and
(B) for use under section 47114(d)(2) of this
title at another airport in the State in which
the land was disposed of under subsection
(c)(2)(B)(ii) of this section; and
(3) subsection (c)(2)(B)(iii) of this section is in
addition to an amount made available to the Secretary
under section 48103 of this title and not subject to
apportionment under section 47114 of this title.
(g) Ensuring Compliance.--(1) To ensure compliance with this
section, the Secretary of Transportation--
(A) shall prescribe requirements for sponsors that
the Secretary considers necessary; and
(B) may make a contract with a public agency.
(2) The Secretary of Transportation may approve an
application for a project grant only if the Secretary is
satisfied that the requirements prescribed under paragraph
(1)(A) of this subsection have been or will be met.
(h) Modifying Assurances and Requiring Compliance With
Additional Assurances.--
(1) In general.--Subject to paragraph (2), before
modifying an assurance required of a person receiving a
grant under this subchapter and in effect after
December 29, 1987, or to require compliance with an
additional assurance from the person, the Secretary of
Transportation must--
(A) publish notice of the proposed
modification in the Federal Register; and
(B) provide an opportunity for comment on the
proposal.
(2) Public notice before waiver of aeronautical land-
use assurance.--Before modifying an assurance under
subsection (c)(2)(B) that requires any property to be
used for an aeronautical purpose, the Secretary must
provide notice to the public not less than 30 days
before making such modification.
(i) Relief From Obligation To Provide Free Space.--When a
sponsor provides a property interest in a land or water area or
a building that the Secretary of Transportation uses to
construct a facility at Government expense, the Secretary may
relieve the sponsor from an obligation in a contract made under
this chapter, the Airport and Airway Development Act of 1970,
or the Federal Airport Act to provide free space to the
Government in an airport building, to the extent the Secretary
finds that the free space no longer is needed to carry out
activities related to air traffic control or navigation.
(j) Use of Revenue in Hawaii.--(1) In this subsection--
(A) ``duty-free merchandise'' and ``duty-free sales
enterprise'' have the same meanings given those terms
in section 555(b)(8) of the Tariff Act of 1930 (19
U.S.C. 1555(b)(8)).
(B) ``highway'' and ``Federal-aid system'' have the
same meanings given those terms in section 101(a) of
title 23.
(2) Notwithstanding subsection (b)(1) of this section, Hawaii
may use, for a project for construction or reconstruction of a
highway on a Federal-aid system that is not more than 10 miles
by road from an airport and that will facilitate access to the
airport, revenue from the sales at off-airport locations in
Hawaii of duty-free merchandise under a contract between Hawaii
and a duty-free sales enterprise. However, the revenue
resulting during a Hawaiian fiscal year may be used only if the
amount of the revenue, plus amounts Hawaii receives in the
fiscal year from all other sources for costs Hawaii incurs for
operating all airports it operates and for debt service related
to capital projects for the airports (including interest and
amortization of principal costs), is more than 150 percent of
the projected costs for the fiscal year.
(3)(A) Revenue from sales referred to in paragraph (2) of
this subsection in a Hawaiian fiscal year that Hawaii may use
may not be more than the amount that is greater than 150
percent as determined under paragraph (2).
(B) The maximum amount of revenue Hawaii may use under
paragraph (2) of this subsection is $250,000,000.
(4) If a fee imposed or collected for rent, landing, or
service from an aircraft operator by an airport operated by
Hawaii is increased during the period from May 4, 1990, through
December 31, 1994, by more than the percentage change in the
Consumer Price Index of All Urban Consumers for Honolulu,
Hawaii, that the Secretary of Labor publishes during that
period and if revenue derived from the fee increases because
the fee increased, the amount under paragraph (3)(B) of this
subsection shall be reduced by the amount of the projected
revenue increase in the period less the part of the increase
attributable to changes in the Index in the period.
(5) Hawaii shall determine costs, revenue, and projected
revenue increases referred to in this subsection and shall
submit the determinations to the Secretary of Transportation. A
determination is approved unless the Secretary disapproves it
not later than 30 days after it is submitted.
(6) Hawaii is not eligible for a grant under section 47115 of
this title in a fiscal year in which Hawaii uses under
paragraph (2) of this subsection revenue from sales referred to
in paragraph (2). Hawaii shall repay amounts it receives in a
fiscal year under a grant it is not eligible to receive because
of this paragraph to the Secretary of Transportation for
deposit in the discretionary fund established under section
47115.
(7)(A) This subsection applies only to revenue from sales
referred to in paragraph (2) of this subsection from May 5,
1990, through December 30, 1994, and to amounts in the Airport
Revenue Fund of Hawaii that are attributable to revenue before
May 4, 1990, on sales referred to in paragraph (2).
(B) Revenue from sales referred to in paragraph (2) of this
subsection from May 5, 1990, through December 30, 1994, may be
used under paragraph (2) in any Hawaiian fiscal year, including
a Hawaiian fiscal year beginning after December 31, 1994.
(k) Annual Summaries of Financial Reports.--The Secretary
shall provide to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives an annual summary of the reports submitted to
the Secretary under subsection (a)(19) of this section and
under section 111(b) of the Federal Aviation Administration
Authorization Act of 1994.
(l) Policies and Procedures To Ensure Enforcement Against
Illegal Diversion of Airport Revenue.--
(1) In general.--Not later than 90 days after August
23, 1994, the Secretary of Transportation shall
establish policies and procedures that will assure the
prompt and effective enforcement of subsections (a)(13)
and (b) of this section and grant assurances made under
such subsections. Such policies and procedures shall
recognize the exemption provision in subsection (b)(2)
of this section and shall respond to the information
contained in the reports of the Inspector General of
the Department of Transportation on airport revenue
diversion and such other relevant information as the
Secretary may by law consider.
(2) Revenue diversion.--Policies and procedures to be
established pursuant to paragraph (1) of this
subsection shall prohibit, at a minimum, the diversion
of airport revenues (except as authorized under
subsection (b) of this section) through--
(A) direct payments or indirect payments,
other than payments reflecting the value of
services and facilities provided to the
airport;
(B) use of airport revenues for general
economic development, marketing, and
promotional activities unrelated to airports or
airport systems;
(C) payments in lieu of taxes or other
assessments that exceed the value of services
provided; or
(D) payments to compensate nonsponsoring
governmental bodies for lost tax revenues
exceeding stated tax rates.
(3) Efforts to be self-sustaining.--With respect to
subsection (a)(13) of this section, policies and
procedures to be established pursuant to paragraph (1)
of this subsection shall take into account, at a
minimum, whether owners and operators of airports, when
entering into new or revised agreements or otherwise
establishing rates, charges, and fees, have undertaken
reasonable efforts to make their particular airports as
self-sustaining as possible under the circumstances
existing at such airports.
(4) Administrative safeguards.--Policies and
procedures to be established pursuant to paragraph (1)
shall mandate internal controls, auditing requirements,
and increased levels of Department of Transportation
personnel sufficient to respond fully and promptly to
complaints received regarding possible violations of
subsections (a)(13) and (b) of this section and grant
assurances made under such subsections and to alert the
Secretary to such possible violations.
(5) Statute of limitations.--In addition to the
statute of limitations specified in subsection (n)(7),
with respect to project grants made under this
chapter--
(A) any request by a sponsor or any other
governmental entity to any airport for
additional payments for services conducted off
of the airport or for reimbursement for capital
contributions or operating expenses shall be
filed not later than 6 years after the date on
which the expense is incurred; and
(B) any amount of airport funds that are used
to make a payment or reimbursement as described
in subparagraph (A) after the date specified in
that subparagraph shall be considered to be an
illegal diversion of airport revenues that is
subject to subsection (n).
(m) Audit Certification.--
(1) In general.--The Secretary of Transportation,
acting through the Administrator of the Federal
Aviation Administration, shall include a provision in
the compliance supplement provisions to require a
recipient of a project grant (or any other recipient of
Federal financial assistance that is provided for an
airport) to include as part of an annual audit
conducted under sections 7501 through 7505 of title 31,
a review concerning the funding activities with respect
to an airport that is the subject of the project grant
(or other Federal financial assistance) and the
sponsors, owners, or operators (or other recipients)
involved.
(2) Content of review.--A review conducted under
paragraph (1) shall provide reasonable assurances that
funds paid or transferred to sponsors are paid or
transferred in a manner consistent with the applicable
requirements of this chapter and any other applicable
provision of law (including regulations promulgated by
the Secretary or the Administrator).
(n) Recovery of Illegally Diverted Funds.--
(1) In general.--Not later than 180 days after the
issuance of an audit or any other report that
identifies an illegal diversion of airport revenues (as
determined under subsections (b) and (l) and section
47133), the Secretary, acting through the
Administrator, shall--
(A) review the audit or report;
(B) perform appropriate factfinding; and
(C) conduct a hearing and render a final
determination concerning whether the illegal
diversion of airport revenues asserted in the
audit or report occurred.
(2) Notification.--Upon making such a finding, the
Secretary, acting through the Administrator, shall
provide written notification to the sponsor and the
airport of--
(A) the finding; and
(B) the obligations of the sponsor to
reimburse the airport involved under this
paragraph.
(3) Administrative action.--The Secretary may
withhold any amount from funds that would otherwise be
made available to the sponsor, including funds that
would otherwise be made available to a State,
municipality, or political subdivision thereof
(including any multimodal transportation agency or
transit authority of which the sponsor is a member
entity) as part of an apportionment or grant made
available pursuant to this title, if the sponsor--
(A) receives notification that the sponsor is
required to reimburse an airport; and
(B) has had an opportunity to reimburse the
airport, but has failed to do so.
(4) Civil action.--If a sponsor fails to pay an
amount specified under paragraph (3) during the 180-day
period beginning on the date of notification and the
Secretary is unable to withhold a sufficient amount
under paragraph (3), the Secretary, acting through the
Administrator, may initiate a civil action under which
the sponsor shall be liable for civil penalty in an
amount equal to the illegal diversion in question plus
interest (as determined under subsection (o)).
(5) Disposition of penalties.--
(A) Amounts withheld.--The Secretary or the
Administrator shall transfer any amounts
withheld under paragraph (3) to the Airport and
Airway Trust Fund.
(B) Civil penalties.--With respect to any
amount collected by a court in a civil action
under paragraph (4), the court shall cause to
be transferred to the Airport and Airway Trust
Fund any amount collected as a civil penalty
under paragraph (4).
(6) Reimbursement.--The Secretary, acting through the
Administrator, shall, as soon as practicable after any
amount is collected from a sponsor under paragraph (4),
cause to be transferred from the Airport and Airway
Trust Fund to an airport affected by a diversion that
is the subject of a civil action under paragraph (4),
reimbursement in an amount equal to the amount that has
been collected from the sponsor under paragraph (4)
(including any amount of interest calculated under
subsection (o)).
(7) Statute of limitations.--No person may bring an
action for the recovery of funds illegally diverted in
violation of this section (as determined under
subsections (b) and (l)) or section 47133 after the
date that is 6 years after the date on which the
diversion occurred.
(o) Interest.--
(1) In general.--Except as provided in paragraph (2),
the Secretary, acting through the Administrator, shall
charge a minimum annual rate of interest on the amount
of any illegal diversion of revenues referred to in
subsection (n) in an amount equal to the average
investment interest rate for tax and loan accounts of
the Department of the Treasury (as determined by the
Secretary of the Treasury) for the applicable calendar
year, rounded to the nearest whole percentage point.
(2) Adjustment of interest rates.--If, with respect
to a calendar quarter, the average investment interest
rate for tax and loan accounts of the Department of the
Treasury exceeds the average investment interest rate
for the immediately preceding calendar quarter, rounded
to the nearest whole percentage point, the Secretary of
the Treasury may adjust the interest rate charged under
this subsection in a manner that reflects that change.
(3) Accrual.--Interest assessed under subsection (n)
shall accrue from the date of the actual illegal
diversion of revenues referred to in subsection (n).
(4) Determination of applicable rate.--The applicable
rate of interest charged under paragraph (1) shall--
(A) be the rate in effect on the date on
which interest begins to accrue under paragraph
(3); and
(B) remain at a rate fixed under subparagraph
(A) during the duration of the indebtedness.
(p) Payment by Airport to Sponsor.--If, in the course of an
audit or other review conducted under this section, the
Secretary or the Administrator determines that an airport owes
a sponsor funds as a result of activities conducted by the
sponsor or expenditures by the sponsor for the benefit of the
airport, interest on that amount shall be determined in the
same manner as provided in paragraphs (1) through (4) of
subsection (o), except that the amount of any interest assessed
under this subsection shall be determined from the date on
which the Secretary or the Administrator makes that
determination.
(q) Notwithstanding any written assurances prescribed in
subsections (a) through (p), a general aviation airport with
more than 300,000 annual operations may be exempt from having
to accept scheduled passenger air carrier service, provided
that the following conditions are met:
(1) No scheduled passenger air carrier has provided
service at the airport within 5 years prior to January
1, 2002.
(2) The airport is located within or underneath the
Class B airspace of an airport that maintains an
airport operating certificate pursuant to section 44706
of title 49.
(3) The certificated airport operating under section
44706 of title 49 and does not contribute to
significant passenger delays as defined by DOT/FAA in
the ``Airport Capacity Benchmark Report 2001''.
(r) An airport that meets the conditions of subsections
(q)(1) through (3) is not subject to section 47524 of title 49
with respect to a prohibition on all scheduled passenger
service.
(s) Competition Disclosure Requirement.--
(1) In general.--The Secretary of Transportation may
approve an application under this subchapter for an
airport development project grant for a large hub
airport or a medium hub airport only if the Secretary
receives assurances that the airport sponsor will
provide the information required by paragraph (2) at
such time and in such form as the Secretary may
require.
(2) Competitive access.--On February 1 and August 1
of each year, an airport that during the previous 6-
month period has been unable to accommodate one or more
requests by an air carrier for access to gates or other
facilities at that airport in order to provide service
to the airport or to expand service at the airport
shall transmit a report to the Secretary that--
(A) describes the requests;
(B) provides an explanation as to why the
requests could not be accommodated; and
(C) provides a time frame within which, if
any, the airport will be able to accommodate
the requests.
[(3) Sunset provision.--This subsection shall cease
to be effective beginning October 1, 2008.]
* * * * * * *
Sec. 47109. United States Government's share of project costs
(a) General.--Except as provided in [subsection (b) or
subsection (c)] subsection (b), (c), or (e) of this section,
the United States Government's share of allowable project costs
is--
(1) 75 percent for a project at a primary airport
having at least .25 percent of the total number of
passenger boardings each year at all commercial service
airports;
(2) not more than 90 percent for a project funded by
a grant issued to and administered by a State under
section 47128, relating to the State block grant
program;
(3) 90 percent for a project at any other airport;
(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) for fiscal year 2002, 100 percent for a project
described in section 47102(3)(J), 47102(3)(K), or
47102(3)(L).
(b) Increased Government Share.--If, under subsection (a) of
this section, the Government's share of allowable costs of a
project in a State containing unappropriated and unreserved
public lands and nontaxable Indian lands (individual and
tribal) of more than 5 percent of the total area of all lands
in the State, is less than the share applied on June 30, 1975,
under section 17(b) of the Airport and Airway Development Act
of 1970, the Government's share under subsection (a) of this
section shall be increased by the lesser of--
(1) 25 percent;
(2) one-half of the percentage that the area of
unappropriated and unreserved public lands and
nontaxable Indian lands in the State is of the total
area of the State; or
(3) the percentage necessary to increase the
Government's share to the percentage that applied on
June 30, 1975, under section 17(b) of the Act.
(c) Grandfather Rule.--
(1) In general.--In the case of any project approved
after September 30, 2003, at a small hub airport or
nonhub airport that is located in a State containing
unappropriated and unreserved public lands and
nontaxable Indian lands (individual and tribal) of more
than 5 percent of the total area of all lands in the
State, the Government's share of allowable costs of the
project shall be increased by the same ratio as the
basic share of allowable costs of a project divided
into the increased (Public Lands States) share of
allowable costs of a project as shown on documents of
the Federal Aviation Administration dated August 3,
1979, at airports for which the general share was 80
percent on August 3, 1979. This subsection shall apply
only if--
(A) the State contained unappropriated and
unreserved public lands and nontaxable Indian
lands of more than 5 percent of the total area
of all lands in the State on August 3, 1979;
and
(B) the application under subsection (b),
does not increase the Government's share of
allowable costs of the project.
(2) Limitation.--The Government's share of allowable
project costs determined under this subsection shall
not exceed the lesser of 93.75 percent or the highest
percentage Government share applicable to any project
in any State under subsection (b).
(d) Special Rule for Privately Owned Reliever Airports.--If a
privately owned reliever airport contributes any lands,
easements, or rights-of-way to carry out a project under this
subchapter, the current fair market value of such lands,
easements, or rights-of-way shall be credited toward the non-
Federal share of allowable project costs.
(e) Special Rule for Transition From Small Hub to Medium Hub
Status.--If the status of a small hub primary airport changes
to a medium hub primary airport, the United States Government's
share of allowable project costs for the airport may not exceed
95 percent for 2 fiscal years following such change in hub
status.
Sec. 47110. Allowable project costs
(a) General Authority.--Except as provided in section 47111
of this title, the United States Government may pay or be
obligated to pay, from amounts appropriated to carry out this
subchapter, a cost incurred in carrying out a project under
this subchapter only if the Secretary of Transportation decides
the cost is allowable.
(b) Allowable Cost Standards.--A project cost is allowable--
(1) if the cost necessarily is incurred in carrying
out the project in compliance with the grant agreement
made for the project under this subchapter, including
any cost a sponsor incurs related to an audit the
Secretary requires under section 47121(b) or (d) of
this title and any cost of moving a Federal facility
impeding the project if the rebuilt facility is of an
equivalent size and type;
(2)(A) if the cost is incurred after the grant
agreement is executed and is for airport development or
airport planning carried out after the grant agreement
is executed;
(B) if the cost is incurred after June 1, 1989, by
the airport operator (regardless of when the grant
agreement is executed) as part of a Government-approved
noise compatability program (including project
formulation costs) and is consistent with all
applicable statutory and administrative requirements;
(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;
(3) to the extent the cost is reasonable in amount;
(4) if the cost is not incurred in a project for
airport development or airport planning for which other
Government assistance has been granted;
(5) if the total costs allowed for the project are
not more than the amount stated in the grant agreement
as the maximum the Government will pay (except as
provided in section 47108(b) of this title); and
(6) if the cost is for a project not described in
section 47102(3) for acquiring for use at a commercial
service airport vehicles and ground support equipment
owned by an airport that include low-emission
technology, but only to the extent of the incremental
cost of equipping such vehicles or equipment with low-
emission technology, as determined by the Secretary.
(c) Certain Prior Costs as Allowable Costs.--The Secretary
may decide that a project cost under subsection (b)(2)(A) of
this section incurred after May 13, 1946, and before the date
the grant agreement is executed is allowable if it is--
(1) necessarily incurred in formulating an airport
development project, including costs incurred for field
surveys, plans and specifications, property interests
in land or airspace, and administration or other
incidental items that would not have been incurred
except for the project; [or]
(2) necessarily and directly incurred in developing
the work scope of an airport planning [project.]
project; or
(3) necessarily incurred in anticipation of severe
weather.
[(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) 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 is paid with
funds apportioned to the airport sponsor under sections
47114(c)(1) or 47114(d)(2);
(2) the Secretary determines that the relocation or
replacement is required due to a change in the
Secretary's design standards; and
(3) the Secretary determines that the change is
beyond the control of the airport sponsor.
(e) Letters of Intent.--(1) The Secretary may issue a letter
of intent to the sponsor stating an intention to obligate from
future budget authority an amount, not more than the
Government's share of allowable project costs, for an airport
development project (including costs of formulating the
project) at a primary or reliever airport. The letter shall
establish a schedule under which the Secretary will reimburse
the sponsor for the Government's share of allowable project
costs, as amounts become available, if the sponsor, after the
Secretary issues the letter, carries out the project without
receiving amounts under this subchapter.
(2) Paragraph (1) of this subsection applies to a project--
(A) about which the sponsor notifies the Secretary,
before the project begins, of the sponsor's intent to
carry out the project;
(B) that will comply with all statutory and
administrative requirements that would apply to the
project if it were carried out with amounts made
available under this subchapter; and
(C) that meets the criteria of section 47115(d) and,
if for a project at a commercial service airport having
at least 0.25 percent of the boardings each year at all
such airports, the Secretary decides will enhance
system-wide airport capacity significantly.
(3) A letter of intent issued under paragraph (1) of this
subsection is not an obligation of the Government under section
1501 of title 31, and the letter is not deemed to be an
administrative commitment for financing. An obligation or
administrative commitment may be made only as amounts are
provided in authorization and appropriation laws.
(4) The total estimated amount of future Government
obligations covered by all outstanding letters of intent under
paragraph (1) of this subsection may not be more than the
amount authorized to carry out section 48103 of this title,
less an amount reasonably estimated by the Secretary to be
needed for grants under section 48103 that are not covered by a
letter.
(5) Letters of intent.--The Secretary may not require an
eligible agency to impose a passenger facility fee under
section 40117 in order to obtain a letter of intent under this
section.
(6) Limitation on statutory construction.--Nothing in this
section shall be construed to prohibit the obligation of
amounts pursuant to a letter of intent under this subsection in
the same fiscal year as the letter of intent is issued.
(f) Nonallowable Costs.--Except as provided in subsection (d)
of this section and section 47118(f) of this title, a cost is
not an allowable airport development project cost if it is
for--
(1) constructing a public parking facility for
passenger automobiles;
(2) constructing, altering, or repairing part of an
airport building, except to the extent the building
will be used for facilities or activities directly
related to the safety of individuals at the airport;
(3) decorative landscaping; or
(4) providing or installing sculpture or art works.
(g) Use of Discretionary Funds.--A project for which cost
reimbursement is provided under subsection (b)(2)(C) shall not
receive priority consideration with respect to the use of
discretionary funds made available under section 47115 of this
title even if the amounts made available under paragraphs (1)
and (2) of section 47114(c) or section 47114(d)(3)(A) are not
sufficient to cover the Government's share of the cost of the
project.
(h) Nonprimary Airports.--The Secretary may decide that the
costs of revenue producing aeronautical support [facilities,
including fuel farms and hangars,] facilities, as defined by
section 47102, 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. 47111. Payments under project grant agreements
(a) General Authority.--After making a project grant
agreement under this subchapter and consulting with the
sponsor, the Secretary of Transportation may decide when and in
what amounts payments under the agreement will be made.
Payments totaling not more than 90 percent of the United States
Government's share of the project's estimated allowable costs
may be made before the project is completed if the sponsor
certifies to the Secretary that the total amount expended from
the advance payments at any time will not be more than the cost
of the airport development work completed on the project at
that time.
(b) Recovering Payments.--If the Secretary determines that
the total amount of payments made under a grant agreement under
this subchapter is more than the Government's share of the
total allowable project costs, the Government may recover the
excess amount. If the Secretary finds that a project for which
an advance payment was made has not been completed within a
reasonable time, the Government may recover any part of the
advance payment for which the Government received no benefit.
(c) Payment Deposits.--A payment under a project grant
agreement under this subchapter may be made only to an official
or depository designated by the sponsor and authorized by law
to receive public money.
(d) Withholding Payments.--(1) The Secretary may withhold a
payment under a grant agreement under this subchapter for more
than 180 days after the payment is due only if the Secretary--
(A) notifies the sponsor and provides an opportunity
for a hearing; and
(B) finds that the sponsor has violated the
agreement.
(2) The 180-day period may be extended by--
(A) agreement of the Secretary and the sponsor; or
(B) the hearing officer if the officer decides an
extension is necessary because the sponsor did not
follow the schedule the officer established.
(3) A person adversely affected by an order of the Secretary
withholding a payment may apply for review of the order by
filing a petition in the United States Court of Appeals for the
District of Columbia Circuit or in the court of appeals of the
United States for the circuit in which the project is located.
The petition must be filed not later than 60 days after the
order is served on the petitioner.
(e) Action on Grant Assurances Concerning Airport Revenues.--
If, after notice and opportunity for a hearing, the Secretary
finds a violation of section 47107(b) of this title, as further
defined by the Secretary under section 47107(l) of this title,
or a violation of an assurance made under section 47107(b) of
this title, and the Secretary has provided an opportunity for
the airport sponsor to take corrective action to cure such
violation, and such corrective action has not been taken within
the period of time set by the Secretary, the Secretary shall
withhold approval of any new grant application for funds under
this chapter, or any proposed modification to an existing grant
that would increase the amount of funds made available under
this chapter to the airport [sponsor, and withhold approval of
any new application to impose a fee under section 40117 of this
title. Such applications may thereafter be approved only upon a
finding by the Secretary that such corrective action as the
Secretary requires has been taken to address the violation and
that the violation no longer exists.] sponsor. A sponsor shall
not propose collection or use of passenger facility charges for
any new projects under paragraphs (3) through (6) of section
40117(c) unless the Secretary determines that the sponsor has
taken corrective action to address the violation and the
violation no longer exists.
(f) Judicial Enforcement.--For any violation of this chapter
or any grant assurance made under this chapter, the Secretary
may apply to the district court of the United States for any
district in which the violation occurred for enforcement. Such
court shall have jurisdiction to enforce obedience thereto by a
writ of injunction or other process, mandatory or otherwise,
restraining any person from further violation.
Sec. 47112. Carrying out airport development projects
(a) Construction Work.--The Secretary of Transportation may
inspect and approve construction work for an airport
development project carried out under a grant agreement under
this subchapter. The construction work must be carried out in
compliance with regulations the Secretary prescribes. The
regulations shall require the sponsor to make necessary cost
and progress reports on the project. The regulations may amend
or modify a contract related to the project only if the
contract was made with actual notice of the regulations.
(b) Prevailing Wages.--A contract for more than $2,000
involving labor for an airport development project carried out
under a grant agreement under this subchapter must require
contractors to pay labor minimum wage rates as determined by
the Secretary of Labor under sections 3141-3144, 3146, and 3147
of title 40. The minimum rates must be included in the bids for
the work and in the invitation for those bids.
(c) Veterans' Preference.--(1) In this subsection--
(A) ``disabled veteran'' has the same meaning given
that term in section 2108 of title 5.
(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(21) of title 38, at any time in the armed
forces for a period of more than 180 consecutive days,
any part of which occurred during the period beginning
on September 11, 2001, and ending on the date
prescribed by Presidential proclamation or by law as
the last date of Operation Iraqi Freedom.
(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.
* * * * * * *
Sec. 47114. Apportionments
(a) Definition.--In this section, ``amount subject to
apportionment'' means the amount newly made available under
section 48103 of this title for a fiscal year.
(b) Apportionment Date.--On the first day of each fiscal
year, the Secretary of Transportation shall apportion the
amount subject to apportionment for that fiscal year as
provided in this section.
(c) Amounts Apportioned to Sponsors.--
(1) Primary airports.--
(A) Apportionment.--The Secretary shall
apportion to the sponsor of each primary
airport for each fiscal year an amount equal
to--
(i) $7.80 for each of the first
50,000 passenger boardings at the
airport during the prior calendar year;
(ii) $5.20 for each of the next
50,000 passenger boardings at the
airport during the prior calendar year;
(iii) $2.60 for each of the next
400,000 passenger boardings at the
airport during the prior calendar year;
(iv) $.65 for each of the next
500,000 passenger boardings at the
airport during the prior calendar year;
and
(v) $.50 for each additional
passenger boarding at the airport
during the prior calendar year.
(B) Minimum and maximum apportionments.--Not
less than $650,000 nor more than $22,000,000
may be apportioned under subparagraph (A) of
this paragraph to an airport sponsor for a
primary airport for each fiscal year.
(C) Special rule.--In any fiscal year in
which the total amount made available under
section 48103 is $3,200,000,000 or more--
(i) the amount to be apportioned to a
sponsor under subparagraph (A) shall be
increased by doubling the amount that
would otherwise be apportioned;
(ii) the minimum apportionment to a
sponsor under subparagraph (B) shall be
$1,000,000 rather than $650,000; and
(iii) the maximum apportionment to a
sponsor under subparagraph (B) shall be
$26,000,000 rather than $22,000,000.
(D) New airports.--Notwithstanding
subparagraph (A), the Secretary shall apportion
on the first day of the first fiscal year
following the official opening of a new airport
with scheduled passenger air transportation an
amount equal to the minimum amount set forth in
subparagraph (B) or (C), as appropriate, to the
sponsor of such airport.
(E) Use of previous fiscal year's
apportionment.--Notwithstanding subparagraph
(A), the Secretary may apportion to an airport
sponsor in a fiscal year an amount equal to the
amount apportioned to that sponsor in the
previous fiscal year if the Secretary finds
that--
(i) passenger boardings at the
airport fell below 10,000 in the
calendar year used to calculate the
apportionment;
(ii) the airport had at least 10,000
passenger boardings in the calendar
year prior to the calendar year used to
calculate apportionments to airport
sponsors in a fiscal year; and
(iii) the cause of the shortfall in
passenger boardings was a temporary but
significant interruption in service by
an air carrier to that [airport due to
an employment action, natural disaster,
or other event unrelated to the demand
for air transportation at the affected
airport.] airport--
(I) if it is included in the
essential air service program
in the calendar year in which
the passenger boardings fall
below 9,700;
(II) if at the airport the
total passenger boardings from
large certificated air carriers
(as defined in part 241 of
title 14, Code of Federal
Regulations) conducting
scheduled plus nonscheduled
service totals 10,000 or more
in the calendar year in which
the airport does not meet the
criteria for a primary airport
under section 47102 of this
title; or
(III) if the documented
interruption to scheduled
service at the airport was
equal to 4 percent of the
scheduled flights in calendar
year 2006, exclusive of
cancellations due to severe
weather conditions, and the
airport is served by a single
air carrier.
(F) For fiscal years 2009 through 2012, with
regard to an airport that meets the criteria
described in paragraph (E)(iii), if the
calendar year passenger boardings for the
calculation of apportionments under this
section fall below 10,000 passenger boardings,
the Secretary may use the passenger boardings
for the last fiscal year in which passenger
boardings exceeded 10,000 for calculating
apportionments.
[(F)] (G) Special rule for fiscal years 2004
and 2005.--Notwithstanding subparagraph (A) and
the absence of scheduled passenger aircraft
service at an airport, the Secretary may
apportion in fiscal years 2004 and 2005 to the
sponsor of the airport an amount equal to the
amount apportioned to that sponsor in fiscal
year 2002 or 2003, whichever amount is greater,
if the Secretary finds that--
(i) the passenger boardings at the
airport were below 10,000 in calendar
year 2002 or 2003;
(ii) the airport had at least 10,000
passenger boardings and scheduled
passenger aircraft service in either
calendar year 2000 or 2001; and
(iii) the reason that passenger
boardings described in clause (i) were
below 10,000 was the decrease in
passengers following the terrorist
attacks of September 11, 2001.
[(G)] (H) Special rule for [fiscal year
2006.--] fiscal years 2008 through 2011._
Notwithstanding subparagraph (A) and the
absence of scheduled passenger aircraft service
at an airport, the Secretary may apportion in
[fiscal year 2006] each of fiscal years 2008
through 2011 to the sponsor of the airport an
amount equal to $500,000, if the Secretary
finds that--
[(i) the passenger boardings at the
airport were below 10,000 in calendar
year 2004;]
(i) the average annual passenger
boardings at the airport for calendar
years 2004 through 2006 were below
10,000 per year;
(ii) the airport had at least 10,000
passenger boardings and scheduled
passenger aircraft service in either
calendar year [2000 or 2001;] 2003; and
(iii) the reason that passenger
boardings described in clause (i) were
below 10,000 was the decrease in
passengers following the terrorist
attacks of September 11, 2001.
(2) Cargo airports.--
(A) Apportionment.--Subject to subparagraph
(D), the Secretary shall apportion an amount
equal to [3.5 percent] 4.0 percent of the
amount subject to apportionment each fiscal
year to the sponsors of airports served by
aircraft providing air transportation of only
cargo with a total annual landed weight of more
than 100,000,000 pounds.
(B) Suballocation formula.--Any funds
apportioned under subparagraph (A) to sponsors
of airports described in subparagraph (A) shall
be allocated among those airports in the
proportion that the total annual landed weight
of aircraft described in subparagraph (A)
landing at each of those airports bears to the
total annual landed weight of those aircraft
landing at all those airports.
(C) Limitation.--In any fiscal year in which
the total amount made available under section
48103 is less than $3,200,000,000, not more
than 8 percent of the amount apportioned under
subparagraph (A) may be apportioned for any one
airport.
(D) Distribution to other airports.--Before
apportioning amounts to the sponsors of
airports under subparagraph (A) for a fiscal
year, the Secretary may set-aside a portion of
such amounts for distribution to the sponsors
of other airports, selected by the Secretary,
that the Secretary finds will be served
primarily by aircraft providing air
transportation of only cargo.
(E) Determination of landed weight.--Landed
weight under this paragraph is the landed
weight of aircraft landing at each airport
described in subparagraph (A) during the prior
calendar year.
(3) Airports served by large certificated carriers.--
(A) Apportionment.--The Secretary shall
apportion to the sponsor of an airport that
received scheduled air service from a large
certificated air carrier (as defined in part
241 of title 14, Code of Federal Regulations)
an amount equal to the minimum apportionment
specified in paragraph (1) of this subsection.
(B) Limitation.--The apportionment under
subparagraph (A) shall be made available to an
airport sponsor only if--
(i) the large certificated air
carrier began scheduled air service at
the airport in May 2006 and ceased
scheduled air service at the airport in
October 2006; and
(ii) the Secretary determines that
the airport had more than 10,000
passenger boardings in the preceding
calendar year, based on data submitted
to the Secretary under part 241 of
title 14, Code of Federal Regulations.
(d) Amounts Apportioned for General Aviation Airports.--
(1) Definitions.--In this subsection, the following
definitions apply:
(A) Area.--The term ``area'' includes land
and water.
(B) Population.--The term ``population''
means the population stated in the latest
decennial census of the United States.
(2) Apportionment.--Except as provided in paragraph
(3), the Secretary shall apportion to the States 18.5
percent of the amount subject to apportionment for each
fiscal year as follows:
(A) 0.66 percent of the apportioned amount to
Guam, American Samoa, the Northern Mariana
Islands, and the Virgin Islands.
(B) Except as provided in paragraph (4),
49.67 percent of the apportioned amount for
airports, excluding primary airports but
including reliever and nonprimary commercial
service airports, in States not named in
subparagraph (A) in the proportion that the
population of each of those States bears to the
total population of all of those States.
(C) Except as provided in paragraph (4),
49.67 percent of the apportioned amount for
airports, excluding primary airports but
including reliever and nonprimary commercial
service airports, in States not named in
subparagraph (A) in the proportion that the
area of each of those States bears to the total
area of all of those States.
(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.
(4) Airports in Alaska, Puerto Rico, and Hawaii.--An
amount apportioned under paragraph (2) or (3) to
Alaska, Puerto Rico, or Hawaii for airports in such
State may be made available by the Secretary for any
public airport in those respective jurisdictions.
(5) Use of state highway specifications.--
(A) In general.--The Secretary may permit the
use of State highway specifications for
airfield pavement construction using funds made
available under this subsection at nonprimary
airports with runways of 5,000 feet or shorter
serving aircraft that do not exceed 60,000
pounds gross weight if the Secretary determines
that--
(i) safety will not be negatively
affected; and
(ii) the life of the pavement will
not be shorter than it would be if
constructed using Administration
standards.
(B) Limitation.--An airport may not seek
funds under this subchapter for runway
rehabilitation or reconstruction of any such
airfield pavement constructed using State
highway specifications for a period of 10 years
after construction is completed unless the
Secretary determines that the rehabilitation or
reconstruction is required for safety reasons.
(6) Integrated airport system planning.--
Notwithstanding any other provision of this subsection,
funds made available under this subsection may be used
for integrated airport system planning that encompasses
one or more primary airports.
(e) Supplemental Apportionment for Alaska.--
(1) In general.--Notwithstanding subsections (c) and
(d) of this section, the Secretary may apportion
amounts for airports in Alaska in the way in which
amounts were apportioned in the fiscal year ending
September 30, 1980, under section 15(a) of the Act.
However, in apportioning amounts for a fiscal year
under this subsection, the Secretary shall apportion--
(A) for each primary airport at least as much
as would be apportioned for the airport under
subsection (c)(1) of this section; and
(B) a total amount at least equal to the
minimum amount required to be apportioned to
airports in Alaska in the fiscal year ending
September 30, 1980, under section 15(a)(3)(A)
of the Act.
(2) Authority for discretionary grants.--This
subsection does not prohibit the Secretary from making
project grants for airports in Alaska from the
discretionary fund under section 47115 of this title.
(3) Airports eligible for funds.--An amount
apportioned under this subsection may be used for any
public airport in Alaska.
(4) Special rule.--In any fiscal year in which the
total amount made available under section 48103 is
$3,200,000,000 or more, the amount that may be
apportioned for airports in Alaska under paragraph (1)
shall be increased by doubling the amount that would
otherwise be apportioned.
(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 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 of $3.00 or less, 50
percent of the projected revenues from the fee
in the fiscal year but not by more than 50
percent of the amount that otherwise would be
apportioned under this section; and
(B) in the case of a fee of more than $3.00,
75 percent of the projected revenues from the
fee in the fiscal year but not by more than 75
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 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 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 in the preceding fiscal year.
(B) Effective period.--Subparagraph (A) shall
be in effect for fiscal year 2004.
Sec. 47115. Discretionary fund
(a) Existence and Amounts in Fund.--The Secretary of
Transportation has a discretionary fund. The fund consists of--
(1) amounts subject to apportionment for a fiscal
year that are not apportioned under section 47114(c)-
(e) of this title; and
(2) 12.5 percent of amounts not apportioned under
section 47114 of this title because of section
47114(f).
(b) Availability of Amounts.--Subject to subsection (c) of
this section and section 47117(e) of this title, the fund is
available for making grants for any purpose for which amounts
are made available under section 48103 of this title that the
Secretary considers most appropriate to carry out this
subchapter.
(c) Minimum Percentage for Primary and Reliever Airports.--At
least 75 percent of the amount in the fund and distributed by
the Secretary in a fiscal year shall be used for making
grants--
(1) to preserve and enhance capacity, safety, and
security at primary and reliever airports; and
(2) to carry out airport noise compatibility planning
and programs at primary and reliever airports.
(d) Considerations.--
(1) For capacity enhancement projects.--In selecting
a project for a grant to preserve and improve capacity
funded in whole or in part from the fund, the Secretary
shall consider--
(A) the effect that the project will have on
overall national transportation system
capacity;
(B) the benefit and cost of the project,
including, in the case of a project at a
reliever airport, the number of operations
projected to be diverted from a primary airport
to the reliever airport as a result of the
project, as well as the cost savings projected
to be realized by users of the local airport
system;
(C) the financial commitment from non-United
States Government sources to preserve or
improve airport capacity;
(D) the airport improvement priorities of the
States to the extent such priorities are not in
conflict with subparagraphs (A) and (B);
(E) the projected growth in the number of
passengers or aircraft that will be using the
airport at which the project will be carried
out; and
(F) the ability of the project to foster
United States competitiveness in securing
global air cargo activity at a United States
airport.
(2) For all projects.--In selecting a project for a
grant under this section, the Secretary shall consider
among other factors whether--
(A) funding has been provided for all other
projects qualifying for funding during the
fiscal year under this chapter that have
attained a higher score under the numerical
priority system employed by the Secretary in
administering the fund; and
(B) the sponsor will be able to commence the
work identified in the project application in
the fiscal year in which the grant is made or
within 6 months after the grant is made,
whichever is later.
(e) Waiving Percentage Requirement.--If the Secretary decides
the Secretary cannot comply with the percentage requirement of
subsection (c) of this section in a fiscal year because there
are insufficient qualified grant applications to meet that
percentage, the amount the Secretary determines will not be
distributed as required by subsection (c) is available for
obligation during the fiscal year without regard to the
requirement.
(f) Consideration of Diversion of Revenues in Awarding
Discretionary Grants.--
(1) General rule.--Subject to paragraph (2), in
deciding whether or not to distribute funds to an
airport from the discretionary funds established by
subsection (a) of this section and section 47116 of
this title, the Secretary shall consider as a factor
militating against the distribution of such funds to
the airport the fact that the airport is using revenues
generated by the airport or by local taxes on aviation
fuel for purposes other than capital or operating costs
of the airport or the local airports system or other
local facilities which are owned or operated by the
owner or operator of the airport and directly and
substantially related to the actual air transportation
of passengers or property.
(2) Required finding.--Paragraph (1) shall apply only
when the Secretary finds that the amount of revenues
used by the airport for purposes other than capital or
operating costs in the airport's fiscal year preceding
the date of the application for discretionary funds
exceeds the amount of such revenues in the airport's
first fiscal year ending after August 23, 1994,
adjusted by the Secretary for changes in the Consumer
Price Index of All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor.
(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.
The amount credited is exclusive of amounts that have
been apportioned in a prior fiscal year under section
47114 of this title and that remain available for
obligation.] of $520,000,000.The amount credited is
exclusive of amounts that have been apportioned in a
prior fiscal year under section 47114 of this title and
that remain available for obligation.
(2) Reduction of apportionments.--In a fiscal year in
which the amount credited under subsection (a) is less
than the minimum amount to be credited under paragraph
(1), the total amount calculated under paragraph (3)
shall be reduced by an amount that, when credited to
the fund, together with the amount credited under
subsection (a), equals such minimum amount.
(3) Amount of reduction.--For a fiscal year, the
total amount available to make a reduction to carry out
paragraph (2) is the total of the amounts determined
under sections 47114(c)(1)(A), 47114(c)(2), 47114(d),
and 47117(e) of this title. Each amount shall be
reduced by an equal percentage to achieve the
reduction.
(h) Priority for Letters of Intent.--In making grants in a
fiscal year with funds made available under this section, the
Secretary shall fulfill intentions to obligate under section
47110(e).
(i) Considerations for Project Under Expanded Security
Eligibility.--In order to assure that funding under this
subchapter is provided to the greatest needs, the Secretary, in
selecting a project described in section 47102(3)(J) for a
grant, shall consider the non-federal resources available to
sponsor, the use of such non-federal resources, and the degree
to which the sponsor is providing increased funding for the
project.
(j) Marshall Islands, Micronesia, and Palau.--For fiscal
years 2004 through [2007,] 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) Grant Purpose.--Except as provided in this section, an
amount apportioned under section 47114(c)(1) or (d)(2) of this
title is available for making grants for any purpose for which
amounts are made available under section 48103 of this title.
(b) Period of Availability.--An amount apportioned under
section 47114 of this title is available to be obligated for
grants under the apportionment only during the fiscal year for
which the amount was apportioned and the 2 fiscal years
immediately after that year or the 3 fiscal years immediately
following that year in the case of a nonhub airport or any
airport that is not a commercial service airport. If the amount
is not obligated under the apportionment within that time, it
shall be added to the discretionary fund.
(c) Primary Airports.--(1) An amount apportioned to a sponsor
of a primary airport under section 47114(c)(1) of this title is
available for grants for any public-use airport of the sponsor
included in the national plan of integrated airport systems.
(2) Waiver.--A sponsor of an airport may make an agreement
with the Secretary of Transportation waiving the sponsor's
claim to any part of the amount apportioned for the airport
under sections 47114(c) and 47114(d)(3)(A) if the Secretary
agrees to make the waived amount available for a grant for
another public-use airport in the same State or geographical
area as the airport, as determined by the Secretary.
(d) State Use.--An amount apportioned to a State under--
(1) section 47114(d)(2)(A) of this title is available
for grants for airports located in the State; and
(2) section 47114(d)(2)(B) or (C) of this title is
available for grants for airports described in section
47114(d)(2)(B) or (C) and located in the State.
(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.).] et seq.), and for water quality mitigation
projects to comply with the Act of June 30, 1948 (33
U.S.C. 1251 et seq.) approved in an environmental
record of decision for an airport development project
under this title. 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] the requirements of the preceding sentence
are is being met in that fiscal year.
(B) At least 4 percent to sponsors of current or
former military airports designated by the Secretary
under section 47118(a) of this title for grants for
developing current and former military airports to
improve the capacity of the national air transportation
system and to sponsors of noncommercial service
airports for grants for operational and maintenance
expenses at any such airport if the amount of such
grants to the sponsor of the airport does not exceed
$30,000 in that fiscal year, if the Secretary
determines that the airport is adversely affected by
the closure or realignment of a military base, and if
the sponsor of the airport certifies that the airport
would otherwise close if the airport does not receive
the grant.
(C) In any fiscal year in which the total amount made
available under section 48103 is $3,200,000,000 or
more, at least two-thirds of 1 percent for grants to
sponsors of reliever airports which have--
(i) more than 75,000 annual operations;
(ii) a runway with a minimum usable landing
distance of 5,000 feet;
(iii) a precision instrument landing
procedure;
(iv) a minimum number of aircraft, to be
determined by the Secretary, based at the
airport; and
(v) been designated by the Secretary as a
reliever airport to an airport with 20,000
hours of annual delays in commercial passenger
aircraft takeoffs and landings.
(2) If the Secretary decides that an amount required to be
used for grants under paragraph (1) of this subsection cannot
be used for a fiscal year because there are insufficient
qualified grant applications, the amount the Secretary
determines cannot be used is available during the fiscal year
for grants for other airports or for other purposes for which
amounts are authorized for grants under section 48103 of this
title.
(3) Priority.--The Secretary shall give priority in making
grants under paragraph (1)(A) to applications for airport noise
compatibility planning and programs at and around--
(A) Chicago O'Hare International Airport;
(B) LaGuardia Airport;
(C) John F. Kennedy International Airport; and
(D) Ronald Reagan Washington National Airport.
(f) Discretionary Use of Apportionments.--
(1) In general.--Subject to paragraph (2), if the
Secretary finds that all or part of an amount of an
apportionment under section 47114 is not required
during a fiscal year to fund a grant for which the
apportionment may be used, the Secretary may use during
such fiscal year the amount not so required to make
grants for any purpose for which grants may be made
under section 48103. The finding may be based on the
notifications that the Secretary receives under section
47105(f) or on other information received from airport
sponsors.
(2) Restoration of apportionments.--
(A) In general.--If the fiscal year for which
a finding is made under paragraph (1) with
respect to an apportionment is not the last
fiscal year of availability of the
apportionment under subsection (b), the
Secretary shall restore to the apportionment an
amount equal to the amount of the apportionment
used under paragraph (1) for a discretionary
grant whenever a sufficient amount is made
available under section 48103.
(B) Period of availability.--If restoration
under this paragraph is made in the fiscal year
for which the finding is made or the succeeding
fiscal year, the amount restored shall be
subject to the original period of availability
of the apportionment under subsection (b). If
the restoration is made thereafter, the amount
restored shall remain available in accordance
with subsection (b) for the original period of
availability of the apportionment plus the
number of fiscal years during which a
sufficient amount was not available for the
restoration.
(3) Newly available amounts.--
(A) Restored amounts to be unavailable for
discretionary grants.--Of an amount newly
available under section 48103 of this title, an
amount equal to the amounts restored under
paragraph (2) shall not be available for
discretionary grant obligations under section
47115.
(B) Use of remaining amounts.--Subparagraph
(A) does not impair the Secretary's authority
under paragraph (1), after a restoration under
paragraph (2), to apply all or part of a
restored amount that is not required to fund a
grant under an apportionment to fund
discretionary grants.
(4) Limitations on obligations apply.--Nothing in
this subsection shall be construed to authorize the
Secretary to incur grant obligations under section
47104 for a fiscal year in an amount greater than the
amount made available under section 48103 for such
obligations for such fiscal year.
(g) Limiting Authority of Secretary.--The authority of the
Secretary to make grants during a fiscal year from amounts that
were apportioned for a prior fiscal year and remain available
for approved airport development project grants under
subsection (b) of this section may be impaired only by a law
enacted after September 3, 1982, that expressly limits that
authority.
Sec. 47118. Designating current and former military airports
(a) General Requirements.--The Secretary of Transportation
shall designate current or former military airports for which
grants may be made under section 47117(e)(1)(B) of this title.
The maximum number of airports bearing such designation at any
time is 15. The Secretary may only so designate an airport
(other than an airport so designated before August 24, 1994)
if--
(1) the airport is a former military installation
closed or realigned under--
(A) section 2687 of title 10;
(B) section 201 of the Defense Authorization
Amendments and Base Closure and Realignment Act
(10 U.S.C. 2687 note); or
(C) section 2905 of the Defense Base Closure
and Realignment Act of 1990 (10 U.S.C. 2687
note); or
(2) the airport is a military installation with both
military and civil aircraft operations.
(b) Survey.--Not later than September 30, 1991, the Secretary
shall complete a survey of current and former military airports
to identify which airports have the greatest potential to
improve the capacity of the national air transportation system.
The survey shall identify the capital development needs of
those airports to make them part of the system and which of
those qualify for grants under section 47104 of this title.
(c) Considerations.--In carrying out this section, the
Secretary shall consider only current or former military
airports for designation under this section if a grant under
section 47117(e)(1)(B) would--
(1) reduce delays at an airport with more than 20,000
hours of annual delays in commercial passenger aircraft
takeoffs and landings; [or]
(2) enhance airport and air traffic control system
capacity in a metropolitan area or reduce current and
projected flight [delays.] delays; or
(3) be critical to the safety of commercial,
military, or general aviation in trans-oceanic flights.
(d) Grants.--Grants under section 47117(e)(1)(B) of this
title may be made for an airport designated under subsection
(a) of this section for the 5 fiscal years following the
designation, and for subsequent periods, each not to exceed 5
fiscal years, if the Secretary determines that the airport
satisfies the designation criteria under subsection (a) at the
beginning of each such subsequent period.
(e) Terminal Building Facilities.--From amounts the Secretary
distributes to an airport under section 47115, $10,000,000 for
each of fiscal years 2004 and 2005, and $7,000,000 for each
fiscal year thereafter, is available to the sponsor of a
current or former military airport the Secretary designates
under this section to construct, improve, or repair a terminal
building facility, including terminal gates used for revenue
passengers getting on or off aircraft. A gate constructed,
improved, or repaired under this subsection--
(1) may not be leased for more than 10 years; and
(2) is not subject to majority in interest clauses.
(f) Parking Lots, Fuel Farms, Utilities, Hangars, and Air
Cargo Terminals.--(1) Construction.--
(2) Reimbursement.--Upon approval of the Secretary, the
sponsor of a current or former military airport the Secretary
designates under this section may use an amount apportioned
under section 47114, or made available under section 47115 or
47117(e)(1)(B), to the airport for reimbursement of costs
incurred by the airport in fiscal years 2003 and 2004 for
construction, improvement, or repair described in paragraph
(1).
(g) Designation of General Aviation Airport.--Notwithstanding
any other provision of this section, one of the airports
bearing a designation under subsection (a) may be a general
aviation airport that was a former military installation closed
or realigned under a section referred to in subsection (a)(1).
* * * * * * *
Sec. 47124. Agreements for State and local operation of airport
facilities
(a) Government Relief From Liability.--The Secretary of
Transportation shall ensure that an agreement under this
subchapter with a qualified entity (as determined by the
Secretary), State, or a political subdivision of a State to
allow the entity, State, or subdivision to operate an airport
facility relieves the United States Government from any
liability arising out of, or related to, acts or omissions of
employees of the entity, State, or subdivision in operating the
airport facility.
(b) Air Traffic Control Contract Program.--(1)(A) 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) If the Secretary determines that a tower already
operating under this program has a benefit to cost ratio of
less than 1.0, the airport sponsor or State or local government
having jurisdiction over the airport shall not be required to
pay the portion of the costs that exceeds the benefit for a
period of 18 months after such determination is made.
(C) If the Secretary finds that all or part of an amount made
available to carry out the program continued under this
paragraph is not required during a fiscal year, the Secretary
may use during such fiscal year the amount not so required to
carry out the program established under paragraph (3) of this
section.
(2) 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) In general.--The Secretary shall establish a
program to contract for air traffic control services at
nonapproach control towers, as defined by the
Secretary, that do not qualify for the contract tower
program established under subsection (a) and continued
under paragraph (1) (in this paragraph referred to as
the ``Contract Tower Program'').
(B) Program components.--In carrying out the program,
the Secretary shall--
(i) utilize for purposes of cost-benefit
analyses, current, actual, site-specific data,
forecast estimates, or airport master plan data
provided by a facility owner or operator and
verified by the Secretary; and
(ii) approve for participation only
facilities willing to fund a pro rata share of
the operating costs of the air traffic control
tower to achieve a 1-to-1 benefit-to-cost ratio
using actual site-specific contract tower
operating costs in any case in which there is
an operating air traffic control tower, as
required for eligibility under the Contract
Tower Program.
(C) Priority.--In selecting facilities to participate
in the program, the Secretary shall give priority to
the following facilities:
(i) Air traffic control towers that are
participating in the Contract Tower Program but
have been notified that they will be terminated
from such program because the Secretary has
determined that the benefit-to-cost ratio for
their continuation in such program is less than
1.0.
(ii) Air traffic control towers that the
Secretary determines have a benefit-to-cost
ratio of at least .50.
(iii) Air traffic control towers of the
Federal Aviation Administration that are closed
as a result of the air traffic controllers
strike in 1981.
(iv) Air traffic control towers located at
airports or points at which an air carrier is
receiving compensation under the essential air
service program under this chapter.
(v) Air traffic control towers located at
airports that are prepared to assume partial
responsibility for maintenance costs.
(vi) Air traffic control towers located at
airports with safety or operational problems
related to topography, weather, runway
configuration, or mix of aircraft.
(vii) Air traffic control towers located at
an airport at which the community has been
operating the tower at its own expense.
(D) Costs exceeding benefits.--If the costs of
operating an air traffic tower under the program exceed
the benefits, the airport sponsor or State or local
government having jurisdiction over the airport shall
pay the portion of the costs that exceed such benefit.
(E) 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. If the Secretary finds that all or
part of an amount made available under this
subparagraph is not required during a fiscal year to
carry out this paragraph, the Secretary may use during
such fiscal year the amount not so required to carry
out the program continued under paragraph (b)(1) of
this section.
(4) Construction of air traffic control towers.--
(A) Grants.--The Secretary may provide grants to a
sponsor of--
(i) a primary airport--
(I) from amounts made available under
sections 47114(c)(1) and 47114(c)(2)
for the construction or improvement of
a nonapproach control tower, as defined
by the Secretary, and for the
acquisition and installation of air
traffic control, communications, and
related equipment to be used in that
tower;
(II) from amounts made available
under sections 47114(c)(1) and
47114(c)(2) for reimbursement for the
cost of construction or improvement of
a nonapproach control tower, as defined
by the Secretary, incurred after
October 1, 1996, if the sponsor
complied with the requirements of
sections 47107(e), 47112(b), and
47112(c) in constructing or improving
that tower; and
(III) from amounts made available
under sections 47114(c)(1) and
47114(c)(2) for reimbursement for the
cost of acquiring and installing in
that tower air traffic control,
communications, and related equipment
that was acquired or installed after
October 1, 1996; and
(ii) a public-use airport that is not a
primary airport--
(I) from amounts made available under
sections 47114(c)(2) and 47114(d) for
the construction or improvement of a
nonapproach control tower, as defined
by the Secretary, and for the
acquisition and installation of air
traffic control, communications, and
related equipment to be used in that
tower;
(II) from amounts made available
under sections 47114(c)(2) and
47114(d)(3)(A) for reimbursement for
the cost of construction or improvement
of a nonapproach control tower, as
defined by the Secretary, incurred
after October 1, 1996, if the sponsor
complied with the requirements of
sections 47107(e), 47112(b), and
47112(c) in constructing or improving
that tower; and
(III) from amounts made available
under sections 47114(c)(2) and
47114(d)(3)(A) for reimbursement for
the cost of acquiring and installing in
that tower air traffic control,
communications, and related equipment
that was acquired or installed after
October 1, 1996.
(B) Eligibility.--An airport sponsor shall be
eligible for a grant under this paragraph only if--
(i)(I) the sponsor is a participant in the
Federal Aviation Administration contract tower
program established under subsection (a) and
continued under paragraph (1) or the pilot
program established under paragraph (3); or
(II) construction of a nonapproach control
tower would qualify the sponsor to be eligible
to participate in such program;
(ii) the sponsor certifies that it will pay
not less than 10 percent of the cost of the
activities for which the sponsor is receiving
assistance under this paragraph;
(iii) the Secretary affirmatively accepts the
proposed contract tower into a contract tower
program under this section and certifies that
the Secretary will seek future appropriations
to pay the Federal Aviation Administration's
cost of the contract to operate the tower to be
constructed under this paragraph;
(iv) the sponsor certifies that it will pay
its share of the cost of the contract to
operate the tower to be constructed under this
paragraph; and
(v) in the case of a tower to be constructed
under this paragraph from amounts made
available under section 47114(d)(2) or
47114(d)(3)(B), the Secretary certifies that--
(I) the Federal Aviation
Administration has consulted the State
within the borders of which the tower
is to be constructed and the State
supports the construction of the tower
as part of its State airport capital
plan; and
(II) the selection of the tower for
funding is based on objective criteria.
(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
in accordance with the Administration's safety management
system.
* * * * * * *
Sec. 47128. State block grant program
(a) General Requirements.--The Secretary of Transportation
shall prescribe [regulations] 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) deciding the State has an organization capable of
effectively administering a block grant made under this
section;
(2) deciding the State uses a satisfactory airport
system planning process;
(3) deciding the State uses a programming process
acceptable to the Secretary;
(4) finding that the State has agreed to comply with
United States Government standard requirements for
administering the block [grant;] grant, including
Federal environmental requirements or an agreed upon
equivalent; and
(5) finding that the State has agreed to provide the
Secretary with program information the Secretary
requires.
(c) Project Analysis and Coordination Requirements.--Any
Federal agency that must approve, license, or permit a proposed
action by a participating State shall coordinate and consult
with the State. The agency shall utilize the environmental
analysis prepared by the State, provided it is adequate, or
supplement that analysis as necessary to meet applicable
Federal requirements.
[(c)] (d) Safety and Security Needs and Needs of System.--
Before deciding whether a planning process is satisfactory or a
programming process is acceptable under subsection (b)(2) or
(b)(3) of this section, the Secretary shall ensure that the
process provides for meeting critical safety and security needs
and that the programming process ensures that the needs of the
national airport system will be addressed in deciding which
projects will receive money from the Government. In carrying
out this subsection, the Secretary shall permit a State to use
the priority system of the State if such system is not
inconsistent with the national priority system.
(e) Pilot Program.--The Secretary shall establish a pilot
program for up to 3 States that do not participate in the
program established under subsection (a) that is consistent
with the program under subsection (a).
[Sec. 47129. Resolution of airport-air carrier disputes concerning
airport fees]
Sec. 47129. Resolution of airport-air carrier and foreign air 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] air carriers or foreign
air carriers [(as defined in section 40102 of this
title)] (as those terms are defined in section 40102 of
this title) 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.
(2) Calculation of fee.--A fee subject to a
determination of reasonableness under this section may
be calculated pursuant to either a compensatory or
residual fee methodology or any combination thereof.
(3) Secretary not to set fee.--In determining whether
a fee is reasonable under this section, the Secretary
may only determine whether the fee is reasonable or
unreasonable and shall not set the level of the fee.
(4) Fees imposed by privately-owned airports.--In
evaluating the reasonableness of a fee imposed by an
airport receiving an exemption under section 47134 of
this title, the Secretary shall consider whether the
airport has complied with section 47134(c)(4).
(b) Procedural Regulations.--Not later than 90 days after
August 23, 1994, the Secretary shall publish in the Federal
Register final regulations, policy statements, or guidelines
establishing--
(1) the procedures for acting upon any written
request or complaint filed under subsection (a)(1); and
(2) the standards or guidelines that shall be used by
the Secretary in determining under this section whether
an airport fee is reasonable.
(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.
(2) Within 30 days after such complaint is filed with
the Secretary, the Secretary shall dismiss the
complaint if no significant dispute exists or shall
assign the matter to an administrative law judge; and
thereafter the matter shall be handled in accordance
with part 302 of title 14, Code of Federal Regulations,
or as modified by the Secretary to ensure an orderly
disposition of the matter within the 120-day period and
any specifically applicable provisions of this section.
(3) The administrative law judge shall issue a
recommended decision within 60 days after the complaint
is assigned or within such shorter period as the
Secretary may specify.
(4) If the Secretary, upon the expiration of 120 days
after the filing of the complaint, has not issued a
final order, the decision of the administrative law
judge shall be deemed to be the final order of the
Secretary.
(5) Any party to the dispute may seek review of a
final order of the Secretary under this subsection in
the Circuit Court of Appeals for the District of
Columbia Circuit or the court of appeals in the circuit
where the airport which gives rise to the written
complaint is located.
(6) Any findings of fact in a final order of the
Secretary under this subsection, if supported by
substantial evidence, shall be conclusive if challenged
in a court pursuant to this subsection. No objection to
such a final order shall be considered by the court
unless objection was urged before an administrative law
judge or the Secretary at a proceeding under this
subsection or, if not so urged, unless there were
reasonable grounds for failure to do so.
(d) Payment Under Protest; Guarantee of 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 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 carrier] air carrier or foreign air carriers
using the facilities of an airport;
(2) a fee imposed pursuant to a financing agreement
or covenant entered into prior to August 23, 1994; or
(3) any other existing fee not in dispute as of
August 23, 1994.
(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.
(g) Definition.--In this section, the term ``fee'' means any
rate, rental charge, landing fee, or other service charge for
the use of airport facilities.
* * * * * * *
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
(5) a detailed statement listing airports that the
Secretary believes are not in compliance with grant
assurances or other requirements with respect to
airport lands and including the circumstances of such
noncompliance, the timelines for corrective action, and
the corrective action the Secretary intends to take to
bring the airport sponsor into compliance.
(b) Special Rule for Listing Noncompliant Airports.--The
Secretary does not have to conduct an audit or make a final
determination before including an airport on the list referred
to in subsection (a)(5).
* * * * * * *
Sec. 47133. Restriction on use of revenues
(a) Prohibition.--Local taxes on aviation fuel (except taxes
in effect on December 30, 1987) or the revenues generated by an
airport that is the subject of Federal assistance may not be
expended for any purpose other than the capital or operating
costs of--
(1) the airport;
(2) the local airport system; or
(3) any other local facility that is owned or
operated by the person or entity that owns or operates
the airport that is directly and substantially related
to the air transportation of passengers or property.
(b) Exceptions.--
(1) 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) In the case of a privately owned airport,
subsection (a) shall not apply to the proceeds from the
sale of the airport to a public sponsor if--
(A) the sale is approved by the Secretary;
(B) funding is provided under this title for
the public sponsor's acquisition; and
(C) an amount equal to the remaining
unamortized portion of the original grant,
amortized over a 20-year period, is repaid to
the Secretary by the private owner for deposit
in the Trust Fund for airport acquisitions.
(3) This subsection shall apply to grants issued on
or after October 1, 1996.
(c) Rule of Construction.--Nothing in this section may be
construed to prevent the use of a State tax on aviation fuel to
support a State aviation program or the use of airport revenue
on or off the airport for a noise mitigation purpose.
* * * * * * *
[Sec. 47137. Airport security program\1\
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\1\ Repealed as of September 30, 2008.
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[(a) General Authority.--To improve security at public
airports in the United States, the Secretary of Transportation
shall carry out not less than one project to test and evaluate
innovative aviation security systems and related technology.
[(b) Priority.--In carrying out this section, the Secretary
shall give the highest priority to a request from an eligible
sponsor for a grant to undertake a project that--
[(1) evaluates and tests the benefits of innovative
aviation security systems or related technology,
including explosives detection systems, for the purpose
of improving aviation and aircraft physical security,
access control, and passenger and baggage screening;
and
[(2) provides testing and evaluation of airport
security systems and technology in an operational,
testbed environment.
[(c) Matching Share.--Notwithstanding section 47109, the
United States Government's share of allowable project costs for
a project under this section shall be 100 percent.
[(d) Terms and Conditions.--The Secretary may establish such
terms and conditions as the Secretary determines appropriate
for carrying out a project under this section, including terms
and conditions relating to the form and content of a proposal
for a project, project assurances, and schedule of payments.
[(e) Administration.--The Secretary, in cooperation with the
Secretary of Homeland Security, shall administer the program
authorized by this section.
[(f) Eligible Sponsor Defined.--In this section, the term
``eligible sponsor'' means a nonprofit corporation composed of
a consortium of public and private persons, including a sponsor
of a primary airport, with the necessary engineering and
technical expertise to successfully conduct the testing and
evaluation of airport and aircraft related security systems.
[(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 for the purpose of carrying out this section.]
* * * * * * *
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) The provision of credits is consistent with the
Clean Air Act (42 U.S.C. 7402 et seq.).
(2) Credits generated by the emissions reductions are
kept by the airport sponsor and may only be used for
purposes of any current or future general conformity
determination under the Clean Air Act or as offsets
under the Environmental Protection Agency's new source
review program for projects on the airport or
associated with the airport.
(3) Credits are calculated and provided to airports
on a consistent basis nationwide.
(4) Credits are provided to airport sponsors in a
timely manner.
(5) The establishment of a method to assure the
Secretary that, for any specific airport project for
which funding is being requested, the appropriate
credits will be granted.
(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
47102(3)(L), or as a condition for granting approval to collect
or use a passenger facility fee for a project described in
section 40117(a)(3)(G), [47103(3)(F),] 47102(3)(K),
[47102(3)(L), or 47140,] or 47102(3)(L), 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.
(c) Previously Approved Projects.--The Administrator of the
Environmental Protection Agency, in consultation with the
Secretary, shall determine how to provide appropriate emissions
credits to airport projects previously approved under section
47136 consistent with the guidance and conditions specified in
subsection (a).
(d) State Authority Under CAA.--Nothing in this section shall
be construed as overriding existing State law or regulation
pursuant to section 116 of the Clean Air Act (42 U.S.C. 7416).
* * * * * * *
Sec. 47143. Environmental mitigation demonstration pilot program
(a) In General.--The Secretary of Transportation shall carry
out a pilot program involving not more than 6 projects at
public-use airports under which the Secretary may make grants
to sponsors of such airports from funds apportioned under
paragraph 47117(e)(1)(A) for use at such airports for
environmental mitigation demonstration projects that will
measurably reduce or mitigate aviation impacts on noise, air
quality or water quality in the vicinity of the airport.
Notwithstanding any other provision of this subchapter, an
environmental mitigation demonstration project approved under
this section shall be treated as eligible for assistance under
this subchapter.
(b) Participation in Pilot Program.--A public-use airport
shall be eligible for participation in the pilot.
(c) Selection Criteria.--In selecting from among applicants
for participation in the pilot program, the Secretary may give
priority consideration to environmental mitigation
demonstration projects that--
(1) will achieve the greatest reductions in aircraft
noise, airport emissions, or airport water quality
impacts either on an absolute basis, or on a per-
dollar-of-funds expended basis; and
(2) will be implemented by an eligible consortium.
(d) Federal Share.--Notwithstanding any other provision of
this subchapter, the United States Government's share of the
costs of a project carried out under this section shall be 50
percent.
(e) Maximum Amount.--Not more than $2,500,000 may be made
available by the Secretary in grants under this section for any
single project.
(f) Identifying Best Practices.--The Administrator may
develop and publish information identifying best practices for
reducing or mitigating aviation impacts on noise, air quality,
or water quality in the vicinity of airports, based on the
projects carried out under the pilot program.
(g) Definitions.--In this section:
(1) Eligible consortium.--The term ``eligible
consortium'' means a consortium that comprises 2 or
more of the following entities:
(A) Businesses incorporated in the United
States.
(B) Public or private educational or research
organizations located in the United States.
(C) Entities of State or local governments in
the United States.
(D) Federal laboratories.
(2) Environmental mitigation demonstration project.--
The term ``environmental mitigation demonstration
project'' means a project that--
(A) introduces new conceptual environmental
mitigation techniques or technology with
associated benefits, which have already been
proven in laboratory demonstrations;
(B) proposes methods for efficient adaptation
or integration of new concepts to airport
operations; and
(C) will demonstrate whether new techniques
or technology for environmental mitigation
identified in research are--
(i) practical to implement at or near
multiple public use airports; and
(ii) capable of reducing noise,
airport emissions, or water quality
impacts in measurably significant
amounts.
SUBCHAPTER II--SURPLUS PROPERTY FOR PUBLIC AIRPORTS
Sec. 47151. Authority to transfer an interest in surplus property
(a) General Authority.--Subject to sections 47152 and 47153
of this title, a department, agency, or instrumentality of the
executive branch of the United States Government or a wholly
owned Government corporation may convey to a State, political
subdivision of a State, or tax-supported organization any
interest in surplus property--
(1) that the Secretary of Transportation decides is--
(A) desirable for developing, improving,
operating, or maintaining a public airport (as
defined in section 47102 of this title);
(B) reasonably necessary to fulfill the
immediate and foreseeable future requirements
for developing, improving, operating, or
maintaining a public airport; or
(C) needed for developing sources of revenue
from nonaviation businesses at a public
airport; and
(2) if the Administrator of General Services approves
the conveyance and decides the interest is not best
suited for industrial use.
(b) Ensuring Compliance.--Only the Secretary may ensure
compliance with an instrument conveying an interest in surplus
property under this subchapter. The Secretary may amend the
instrument to correct the instrument or to make the conveyance
comply with law.
(c) Disposing of Interests Not Conveyed Under This
Subchapter.--An interest in surplus property that could be used
at a public airport but that is not conveyed under this
subchapter shall be disposed of under other applicable law.
(d) Waiver of Condition.--Before the Secretary may waive any
condition imposed on an interest in surplus property conveyed
under subsection (a) that such interest be used for an
aeronautical purpose, the Secretary must provide notice to the
public not less than 30 days before waiving such condition.
(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.] project, or to conduct
special environmental studies related to a federally funded
airport project or for special studies or reviews to support
approved noise compatibility measures in a Part 150 program or
environmental mitigation in a Federal Aviation Administration
Record of Decision or Finding of No Significant Impact.
(b) Administrative Provision.--Instead of payment from an
airport sponsor from funds apportioned to the sponsor under
section 47114, the Administrator, with agreement of the
sponsor, may transfer funds that would otherwise be apportioned
to the sponsor under section 47114 to the account used by the
Administrator for activities described in subsection (a).
(c) Receipts Credited as Offsetting Collections.--
Notwithstanding section 3302 of title 31, any funds accepted
under this section, except funds transferred pursuant to
subsection (b)--
(1) shall be credited as offsetting collections to
the account that finances the activities and services
for which the funds are accepted;
(2) shall be available for expenditure only to pay
the costs of activities and services for which the
funds are accepted; and
(3) shall remain available until expended.
(d) Maintenance of Effort.--No funds may be accepted pursuant
to subsection (a), or transferred pursuant to subsection (b),
in any fiscal year in which the Federal Aviation Administration
does not allocate at least the amount it expended in fiscal
year 2002 (excluding amounts accepted pursuant to section 337
of the Department of Transportation and Related Agencies
Appropriations Act, 2002 (115 Stat. 862)) for the activities
described in subsection (a).
* * * * * * *
Sec. 47175. Definitions
In this subchapter, the following definitions apply:
(1) Airport sponsor.--The term ``airport sponsor''
has the meaning given the term ``sponsor'' under
section 47102.
(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 of the most recent Benchmark
report.
(3) Airport capacity enhancement project.--The term
``airport capacity enhancement project'' means--
(A) a project for construction or extension
of a runway, including any land acquisition,
taxiway, or safety area associated with the
runway or runway extension; and
(B) such other airport development projects
as the Secretary may designate as facilitating
a reduction in air traffic congestion and
delays.
(4) Aviation safety project.--The term ``aviation
safety project'' means an aviation project that--
(A) has as its primary purpose reducing the
risk of injury to persons or damage to aircraft
and property, as determined by the
Administrator; and
(B)(i) is needed to respond to a
recommendation from the National Transportation
Safety Board, as determined by the
Administrator; or
(ii) is necessary for an airport to comply
with part 139 of title 14, Code of Federal
Regulations (relating to airport
certification).
(5) Aviation security project.--The term ``aviation
security project'' means a security project at an
airport required by the Department of Homeland
Security.
(6) Federal agency.--The term ``Federal agency''
means a department or agency of the United States
Government.
(7) Joint use airport.--The term ``joint use
airport'' means an airport owned by the United States
Department of Defense, at which both military and
civilian aircraft make shared use of the airfield.
SUBTITLE VII--AVIATION PROGRAMS
PART B--AIRPORT DEVELOPMENT AND NOISE
CHAPTER 475--NOISE
SUBCHAPTER I--NOISE ABATEMENT
Sec. 47504. Noise compatibility programs
(a) Submissions.--(1) An airport operator that submitted a
noise exposure map and related information under section
47503(a) of this title may submit a noise compatibility program
to the Secretary of Transportation after--
(A) consulting with public agencies and planning
authorities in the area surrounding the airport, United
States Government officials having local responsibility
for the airport, and air carriers using the airport;
and
(B) notice and an opportunity for a public hearing.
(2) A program submitted under paragraph (1) of this
subsection shall state the measures the operator has taken or
proposes to take to reduce existing noncompatible uses and
prevent introducing additional noncompatible uses in the area
covered by the map. The measures may include--
(A) establishing a preferential runway system;
(B) restricting the use of the airport by a type or
class of aircraft because of the noise characteristics
of the aircraft;
(C) constructing barriers and acoustical shielding
and soundproofing public buildings;
(D) using flight procedures to control the operation
of aircraft to reduce exposure of individuals to noise
in the area surrounding the airport; [and]
(E) acquiring land, air rights, easements,
development rights, and other interests to ensure that
the property will be used in ways compatible with
airport [operations.] operations;
(F) joint comprehensive land use planning including
master plans, traffic studies, environmental evaluation
and economic and feasibility studies, with neighboring
local jurisdictions undertaking community redevelopment
in the area where the land or other property interests
acquired by the airport operator pursuant to this
subsection is located, to encourage and enhance
redevelopment opportunities that reflect zoning and
uses that will prevent the introduction of additional
incompatible uses and enhance redevelopment potential;
and
(G) utility upgrades and other site preparation
efforts.
(b) Approvals.--(1) The Secretary shall approve or disapprove
a program submitted under subsection (a) of this section
(except as the program is related to flight procedures referred
to in subsection (a)(2)(D) of this section) not later than 180
days after receiving it. The Secretary shall approve the
program (except as the program is related to flight procedures
referred to in subsection (a)(2)(D)) if the program--
(A) does not place an unreasonable burden on
interstate or foreign commerce;
(B) is reasonably consistent with achieving the goal
of reducing noncompatible uses and preventing the
introduction of additional noncompatible uses; and
(C) provides for necessary revisions because of a
revised map submitted under section 47503(b) of this
title.
(2) A program (except as the program is related to flight
procedures referred to in subsection (a)(2)(D) of this section)
is deemed to be approved if the Secretary does not act within
the 180-day period.
(3) The Secretary shall submit any part of a program related
to flight procedures referred to in subsection (a)(2)(D) of
this section to the Administrator of the Federal Aviation
Administration. The Administrator shall approve or disapprove
that part of the program.
(4) The Secretary shall not approve in fiscal years 2004
through 2007 a program submitted under subsection (a) if the
program requires the expenditure of funds made available under
section 48103 for mitigation of aircraft noise less than 65
DNL.
(c) Grants.--(1) The Secretary may incur obligations to make
grants from amounts available under section 48103 of this title
to carry out a project under a part of a noise compatibility
program approved under subsection (b) of this section. A grant
may be made to--
(A) an airport operator submitting the program; and
(B) a unit of local government in the area
surrounding the airport, if the Secretary decides the
unit is able to carry out the project.
(2) Soundproofing and acquisition of certain residential
buildings and properties.--The Secretary may incur obligations
to make grants from amounts made available under section 48103
of this title--
(A) for projects to soundproof residential
buildings--
(i) if the airport operator received approval
for a grant for a project to soundproof
residential buildings pursuant to section
301(d)(4)(B) of the Airport and Airway Safety
and Capacity Expansion Act of 1987;
(ii) if the airport operator submits updated
noise exposure contours, as required by the
Secretary; and
(iii) if the Secretary determines that the
proposed projects are compatible with the
purposes of this chapter;
(B) to an airport operator and unit of local
government referred to in paragraph (1)(A) or (1)(B) of
this subsection to soundproof residential buildings
located on residential properties, and to acquire
residential properties, at which noise levels are not
compatible with normal operations of an airport--
(i) if the airport operator amended an
existing local aircraft noise regulation during
calendar year 1993 to increase the maximum
permitted noise levels for scheduled air
carrier aircraft as a direct result of
implementation of revised aircraft noise
departure procedures mandated for aircraft
safety purposes by the Administrator of the
Federal Aviation Administration for
standardized application at airports served by
scheduled air carriers;
(ii) if the airport operator submits updated
noise exposure contours, as required by the
Secretary; and
(iii) if the Secretary determines that the
proposed projects are compatible with the
purposes of this chapter;
(C) to an airport operator and unit of local
government referred to in paragraph (1)(A) or (1)(B) of
this subsection to carry out any part of a program
developed before February 18, 1980, or before
implementing regulations were prescribed, if the
Secretary decides the program is substantially
consistent with reducing existing noncompatible uses
and preventing the introduction of additional
noncompatible uses and the purposes of this chapter
will be furthered by promptly carrying out the program;
(D) to an airport operator and unit of local
government referred to in paragraph (1)(A) or (1)(B) of
this subsection to soundproof a building in the noise
impact area surrounding the airport that is used
primarily for educational or medical purposes and that
the Secretary decides is adversely affected by airport
noise; and
(E) to an airport operator of a congested airport (as
defined in section 47175) and a unit of local
government referred to in paragraph (1)(B) of this
subsection to carry out a project to mitigate noise in
the area surrounding the airport if the project is
included as a commitment in a record of decision of the
Federal Aviation Administration for an airport capacity
enhancement project (as defined in section 47175) even
if that airport has not met the requirements of part
150 of title 14, Code of Federal Regulations.
(3) An airport operator may agree to make a grant made under
paragraph (1)(A) of this subsection available to a public
agency in the area surrounding the airport if the Secretary
decides the agency is able to carry out the project.
(4) The Government's share of a project for which a grant is
made under this subsection is the greater of--
(A) 80 percent of the cost of the project; or
(B) the Government's share that would apply if the
amounts available for the project were made available
under subchapter I of chapter 471 of this title for a
project at the airport.
(5) The provisions of subchapter I of chapter 471 of this
title related to grants apply to a grant made under this
chapter, except--
(A) section 47109(a) and (b) of this title; and
(B) any provision that the Secretary decides is
inconsistent with, or unnecessary to carry out, this
chapter.
(6) Aircraft noise primarily caused by military aircraft.--
The Secretary may make a grant under this subsection for a
project even if the purpose of the project is to mitigate the
effect of noise primarily caused by military aircraft at an
airport.
(d) Government Relief From Liability.--The Government is not
liable for damages from aviation noise because of action taken
under this section.
(e) Grants for Assessment of Flight Procedures.--
(1) The Secretary is authorized in accordance with
subsection (c)(1) to make a grant to an airport
operator to assist in completing environmental review
and assessment activities for proposals to implement
flight procedures that have been approved for airport
noise compatibility planning purposes under subsection
(b).
(2) The Administrator of the Federal Aviation
Administration may accept funds from an airport
sponsor, including funds provided to the sponsor under
paragraph (1), to hire additional staff or obtain the
services of consultants in order to facilitate the
timely processing, review and completion of
environmental activities associated with proposals to
implement flight procedures submitted and approved for
airport noise compatibility planning purposes in
accordance with this section. Funds received under this
authority shall not be subject to the procedures
applicable to the receipt of gifts by the
Administrator.
SUBCHAPTER II--NATIONAL AVIATION NOISE POLICY
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] 47528 through 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), a person may not operate a civil subsonic turbojet with
a maximum weight of 75,000 pounds or less to or from an airport
in the United States unless the Secretary of Transportation
finds that the aircraft complies with stage 3 noise levels.
(b) Exception.--Subsection (a) shall not apply to aircraft
operated only outside the 48 contiguous States.
(c) Opt-Out.--Subsection (a) shall not apply at an airport
where the airport operator has notified the Secretary that it
wants to continue to permit the operation of civil subsonic
turbojets with a maximum weight of 75,000 pounds or less that
do not comply with stage 3 noise levels. The Secretary shall
post the notices received under this subsection on its website
or in another place easily accessible to the public.
(d) Limitation.--The Secretary shall permit a person to
operate Stage 1 and Stage 2 aircraft with a maximum weight of
75,000 pounds or less to or from an airport in the contiguous
48 States in order--
(1) to sell, lease, or use the aircraft outside the
48 contiguous States;
(2) to scrap the aircraft;
(3) to obtain modifications to the aircraft to meet
stage 3 noise levels;
(4) to perform scheduled heavy maintenance or
significant modifications on the aircraft at a
maintenance facility located in the contiguous 48
states;
(5) to deliver the aircraft to an operator leasing
the aircraft from the owner or return the aircraft to
the lessor;
(6) to prepare or park or store the aircraft in
anticipation of any of the activities described in
paragraphs (1) through (5); or
(7) to divert the aircraft to an alternative airport
in the 48 contiguous States on account of weather,
mechanical, fuel air traffic control or other safety
reasons while conducting a flight in order to perform
any of the activities described in paragraphs (1)
through (6).
(e) Statutory Construction.--Nothing in the section may be
construed as interfering with, nullifying, or otherwise
affecting determinations made by the Federal Aviation
Administration, or to be made by the Administration, with
respect to applications under part 161 of title 14, Code of
Federal Regulations, that were pending on the date of enactment
of the Aircraft Noise Reduction Act of 2006.
SUBTITLE VII--AVIATION PROGRAMS
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) $2,572,000,000 for fiscal year 2008;
(2) $2,923,000,000 for fiscal year 2009, of which
$412,000,000 is derived from the surcharge imposed
under section 48115;
(3) $3,079,000,000 for fiscal year 2010, of which
$423,000,000 is derived from the surcharge imposed
under section 48115; and
(4) $3,317,000,000 for fiscal year 2011, of which
$436,000,000 is derived from the surcharge imposed
under section 48115.
(b) Availability of Amounts.--Amounts appropriated under this
section remain available until expended.
(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.
Sec. 48102. Research and development
[(a) Authorization of Appropriations.--Not more than the
following amounts may be appropriated to the Secretary of
Transportation out of the Airport and Airway Trust Fund
established under section 9502 of the Internal Revenue Code of
1986 (26 U.S.C. 9502) for conducting civil aviation research
and development under sections 44504, 44505, 44507, 44509, and
44511-44513 of this title:
[(1) for fiscal year 1995--
[(A) $7,673,000 for management and analysis
projects and activities;
[(B) $80,901,000 for capacity and air traffic
management technology projects and activities;
[(C) $39,242,000 for communications,
navigation, and surveillance projects and
activities;
[(D) $2,909,000 for weather projects and
activities;
[(E) $8,660,000 for airport technology
projects and activities;
[(F) $51,004,000 for aircraft safety
technology projects and activities;
[(G) $36,604,000 for system security
technology projects and activities;
[(H) $26,484,000 for human factors and
aviation medicine projects and activities;
[(I) $8,124,000 for environment and energy
projects and activities; and
[(J) $5,199,000 for innovative/cooperative
research projects and activities;
[(2) for fiscal year 1996--
[(A) $8,056,000 for management and analysis
projects and activities;
[(B) $84,946,000 for capacity and air traffic
management technology projects and activities;
[(C) $41,204,000 for communications,
navigation, and surveillance projects and
activities;
[(D) $3,054,000 for weather projects and
activities;
[(E) $9,093,000 for airport technology
projects and activities;
[(F) $53,554,000 for aircraft safety
technology projects and activities;
[(G) $38,434,000 for system security
technology projects and activities;
[(H) $27,808,000 for human factors and
aviation medicine projects and activities;
[(I) $8,532,000 for environment and energy
projects and activities; and
[(J) $5,459,000 for innovative/cooperative
research projects and activities;
[(3) for fiscal year 1997--
[(A) $13,660,000 for system development and
infrastructure projects and activities;
[(B) $34,889,000 for capacity and air traffic
management technology projects and activities;
[(C) $19,000,000 for communications,
navigation, and surveillance projects and
activities;
[(D) $13,000,000 for weather projects and
activities;
[(E) $5,200,000 for airport technology
projects and activities;
[(F) $36,504,000 for aircraft safety
technology projects and activities;
[(G) $57,055,000 for system security
technology projects and activities;
[(H) $23,504,000 for human factors and
aviation medicine projects and activities;
[(I) $3,600,000 for environment and energy
projects and activities; and
[(J) $2,000,000 for innovative/cooperative
research projects and activities;
[(4) for fiscal year 1998, $226,800,000, including--
[(A) $16,379,000 for system development and
infrastructure projects and activities;
[(B) $27,089,000 for capacity and air traffic
management technology projects and activities;
[(C) $23,362,000 for communications,
navigation, and surveillance projects and
activities;
[(D) $16,600,000 for weather projects and
activities;
[(E) $7,854,000 for airport technology
projects and activities;
[(F) $49,202,000 for aircraft safety
technology projects and activities;
[(G) $53,759,000 for system security
technology projects and activities;
[(H) $26,550,000 for human factors and
aviation medicine projects and activities;
[(I) $2,891,000 for environment and energy
projects and activities; and
[(J) $3,114,000 for innovative/cooperative
research projects and activities, of which
$750,000 shall be for carrying out the grant
program established under subsection (h);
[(5) for fiscal year 1999, $229,673,000;
[(6) for fiscal year 2000, $224,000,000, including--
[(A) $17,269,000 for system development and
infrastructure projects and activities;
[(B) $33,042,500 for capacity and air traffic
management technology projects and activities;
[(C) $11,265,400 for communications,
navigation, and surveillance projects and
activities;
[(D) $19,300,000 for weather projects and
activities;
[(E) $6,358,200 for airport technology
projects and activities;
[(F) $44,457,000 for aircraft safety
technology projects and activities;
[(G) $53,218,000 for system security
technology projects and activities;
[(H) $26,207,000 for human factors and
aviation medicine projects and activities;
[(I) $3,481,000 for environment and energy
projects and activities; and
[(J) $2,171,000 for innovative/cooperative
research projects and activities, of which
$750,000 shall be for carrying out subsection
(h);
[(7) for fiscal year 2001, $237,000,000;
[(8) for fiscal year 2002, $249,000,000; and
[(9) for fiscal year 2004, $346,317,000, including--
[(A) $65,000,000 for Improving Aviation
Safety;
[(B) $24,000,000 for Weather Safety Research;
[(C) $27,500,000 for Human Factors and
Aeromedical Research;
[(D) $30,000,000 for Environmental Research
and Development, of which $20,000,000 shall be
for research activities related to reducing
community exposure to civilian aircraft noise
or emissions;
[(E) $7,000,000 for Research Mission Support;
[(F) $10,000,000 for the Airport Cooperative
Research Program;
[(G) $1,500,000 for carrying out subsection
(h) of this section;
[(H) $42,800,000 for Advanced Technology
Development and Prototyping;
[(I) $30,300,000 for Safe Flight 21;
[(J) $90,800,000 for the Center for Advanced
Aviation System Development;
[(K) $9,667,000 for Airports Technology-
Safety; and
[(L) $7,750,000 for Airports Technology-
Efficiency;
[(10) for fiscal year 2005, $356,192,000, including--
[(A) $65,705,000 for Improving Aviation
Safety;
[(B) $24,260,000 for Weather Safety Research;
[(C) $27,800,000 for Human Factors and
Aeromedical Research;
[(D) $30,109,000 for Environmental Research
and Development, of which $20,000,000 shall be
for research activities related to reducing
community exposure to civilian aircraft noise
or emissions;
[(E) $7,076,000 for Research Mission Support;
[(F) $10,000,000 for the Airport Cooperative
Research Program;
[(G) $1,650,000 for carrying out subsection
(h) of this section;
[(H) $43,300,000 for Advanced Technology
Development and Prototyping;
[(I) $31,100,000 for Safe Flight 21;
[(J) $95,400,000 for the Center for Advanced
Aviation System Development;
[(K) $2,200,000 for Free Flight Phase 2;
[(L) $9,764,000 for Airports Technology-
Safety; and
[(M) $7,828,000 for Airports Technology-
Efficiency;
[(11) for fiscal year 2006, $352,157,000, including--
[(A) $66,447,000 for Improving Aviation
Safety;
[(B) $24,534,000 for Weather Safety Research;
[(C) $28,114,000 for Human Factors and
Aeromedical Research;
[(D) $30,223,000 for Environmental Research
and Development, of which $20,000,000 shall be
for research activities related to reducing
community exposure to civilian aircraft noise
or emissions;
[(E) $7,156,000 for Research Mission Support;
[(F) $10,000,000 for the Airport Cooperation
Research Program;
[(G) $1,815,000 for carrying out subsection
(h) of this section;
[(H) $42,200,000 for Advanced Technology
Development and Prototyping;
[(I) $23,900,000 for Safe Flight 21;
[(J) $100,000,000 for the Center for Advanced
Aviation System Development;
[(K) $9,862,000 for Airports Technology-
Safety; and
[(L) $7,906,000 for Airports Technology-
Efficiency; and
[(12) for fiscal year 2007, $356,261,000, including--
[(A) $67,244,000 for Improving Aviation
Safety;
[(B) $24,828,000 for Weather Safety Research;
[(C) $28,451,000 for Human Factors and
Aeromedical Research;
[(D) $30,586,000 for Environmental Research
and Development, of which $20,000,000 shall be
for research activities related to reducing
community exposure to civilian aircraft noise
or emissions;
[(E) $7,242,000 for Research Mission Support;
[(F) $10,000,000 for the Airport Cooperation
Research Program;
[(G) $1,837,000 for carrying out subsection
(h) of this section;
[(H) $42,706,000 for Advanced Technology
Development and Prototyping;
[(I) $24,187,000 for Safe Flight 21;
[(J) $101,200,000 for the Center for Advanced
Aviation System Development;
[(K) $9,980,000 for Airports Technology-
Safety; and
[(L) $8,000,000 for Airports Technology-
Efficiency.]
(a) In General.--Not more than the following amounts may be
appropriated to the Secretary of Transportation out of the
Airport and Airway Trust Fund established under section 9502 of
the Internal Revenue Code of 1986 (26 U.S.C. 9502) for
conducting civil aviation research and development under
sections 44504, 44505, 44507, 44509, and 44511 through 44513 of
this title:
(1) $140,000,000 for fiscal year 2008.
(2) $191,000,000 for fiscal year 2009.
(3) $191,000,000 for fiscal year 2010.
(4) $194,000,000 for fiscal year 2011.
(b) Research Priorities.--(1) The Administrator shall
consider the advice and recommendations of the research
advisory committee established by section 44508 of this title
in establishing priorities among major categories of research
and development activities carried out by the Federal Aviation
Administration.
(2) At least 15 percent of the amount appropriated under
subsection (a) of this section shall be for long-term research
projects.
(3) At least 3 percent of the amount appropriated under
subsection (a) of this section shall be available to the
Administrator of the Federal Aviation Administration to make
grants under section 44511 of this title.
[(c) Transfers Between Categories.--(1) Not more than 10
percent of the net amount authorized for a category of projects
and activities in a fiscal year under subsection (a) of this
section may be transferred to or from that category in that
fiscal year.
[(2) The Secretary may transfer more than 10 percent of an
authorized amount to or from a category only after--
[(A) submitting a written explanation of the proposed
transfer to the Committees on Science and
Appropriations of the House of Representatives and the
Committees on Commerce, Science, and Transportation and
Appropriations of the Senate; and
[(B) 30 days have passed after the explanation is
submitted or each Committee notifies the Secretary in
writing that it does not object to the proposed
transfer.
[(d) Airport Capacity Research and Development.--(1) Of the
amounts made available under subsection (a) of this section, at
least $25,000,000 may be appropriated each fiscal year for
research and development under section 44505(a) and (c) of this
title on preserving and enhancing airport capacity, including
research and development on improvements to airport design
standards, maintenance, safety, operations, and environmental
concerns.
[(2) The Administrator shall submit to the Committees on
Science and Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on expenditures made
under paragraph (1) of this subsection for each fiscal year.
The report shall be submitted not later than 60 days after the
end of the fiscal year.
[(e) Air Traffic Controller Performance Research.--Necessary
amounts may be appropriated to the Secretary out of amounts in
the Fund available for research and development to conduct
research under section 44506(a) and (b) of this title.
[(f) Availability of Amounts.--Amounts appropriated under
subsection (a) of this section remain available until expended.
[(h) Research Grants Program Involving Undergraduate
Students.--
[(1) Establishment.--The Administrator of the Federal
Aviation Administration shall establish a program to
utilize undergraduate and technical colleges, including
Historically Black Colleges and Universities and
Hispanic Serving Institutions, in research on subjects
of relevance to the Federal Aviation Administration.
Grants may be awarded under this subsection for--
[(A) research projects to be carried out at
primarily undergraduate institutions and
technical colleges;
[(B) research projects that combine research
at primarily undergraduate institutions and
technical colleges with other research
supported by the Federal Aviation
Administration;
[(C) research on future training requirements
on projected changes in regulatory requirements
for aircraft maintenance and power plant
licensees; or
[(D) research on the impact of new
technologies and procedures, particularly those
related to aircraft flight deck and air traffic
management functions, on training requirements
for pilots and air traffic controllers.
[(2) Notice of criteria.--Within 6 months after the
date of the enactment of the FAA Research, Engineering,
and Development Authorization Act of 1998, the
Administrator of the Federal Aviation Administration
shall establish and publish in the Federal Register
criteria for the submittal of proposals for a grant
under this subsection, and for the awarding of such
grants.
[(3) Principal criteria.--The principal criteria for
the awarding of grants under this subsection shall be--
[(A) the relevance of the proposed research
to technical research needs identified by the
Federal Aviation Administration;
[(B) the scientific and technical merit of
the proposed research; and
[(C) the potential for participation by
undergraduate students in the proposed
research.
[(4) Competitive, merit-based evaluation.--Grants
shall be awarded under this subsection on the basis of
evaluation of proposals through a competitive, merit-
based process.]
(c) Research Grants Program Involving Undergraduate
Students.--The Administrator of the Federal Aviation
Administration shall establish a program to utilize
undergraduate and technical colleges, including Historically
Black Colleges and Universities, Hispanic Serving Institutions,
tribally controlled colleges and universities, and Alaska
Native and Native Hawaiian serving institutions in research on
subjects of relevance to the Federal Aviation Administration.
Grants may be awarded under this subsection for--
(1) research projects to be carried out at primarily
undergraduate institutions and technical colleges;
(2) research projects that combine research at
primarily undergraduate institutions and technical
colleges with other research supported by the Federal
Aviation Administration;
(3) research on future training requirements on
projected changes in regulatory requirements for
aircraft maintenance and power plant licensees; or
(4) research on the impact of new technologies and
procedures, particularly those related to aircraft
flight deck and air traffic management functions, and
on training requirements for pilots and air traffic
controllers.
Sec. 48103. Airport planning and development and noise compatibility
planning and programs
The total amounts which shall be available after September
30, 2003, 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 for fiscal year 2009;
(3) $4,000,000,000 for fiscal year 2010; and
(4) $4,100,000,000 for fiscal year 2011.
Such sums shall remain available until expended.
* * * * * * *
[Sec. 48105. Weather reporting services
[ To reimburse the Secretary of Commerce for the cost incurred
by the National Oceanic and Atmospheric Administration of
providing weather reporting services to the Federal Aviation
Administration, the Secretary of Transportation may expend from
amounts available under section 48104 of this title not more
than the following amounts:
[(1) for the fiscal year ending September 30, 1993,
$35,596,000.
[(2) for the fiscal year ending September 30, 1994,
$37,800,000.
[(3) for the fiscal year ending September 30, 1995,
$39,000,000.]
``Sec. 48105. Airport programs administrative expenses
Of the amount made available under section 48103 of this
title, the following may be available for administrative
expenses relating to the Airport Improvement Program, passenger
facility charge approval and oversight, national airport system
planning, airport standards development and enforcement,
airport certification, airport-related environmental activities
(including legal services), and other airport-related
activities (including airport technology research), to remain
available until expended--
(1) for fiscal year 2008, $80,676,000;
(2) for fiscal year 2009, $85,000,000;
(3) for fiscal year 2010, $89,000,000; and
(4) for fiscal year 2011, $93,000,000.
* * * * * * *
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] 2011 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).
(B) Guarantee.--No funds may be appropriated
or limited for aviation investment programs
listed in subsection (b) unless the amount
described in subparagraph (A) has been
provided.
(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) Total budget resources.--The term ``total budget
resources'' means the total amount made available from
the Airport and Airway Trust Fund for the sum of
obligation limitations and budget authority made
available for a fiscal year for the following budget
accounts that are subject to the obligation limitation
on contract authority provided in this title and for
which appropriations are provided pursuant to
authorizations contained in this title:
(A) 69-8106-0-7-402 (Grants in Aid for
Airports).
(B) 69-8107-0-7-402 (Facilities and
Equipment).
(C) 69-8108-0-7-402 (Research and
Development).
(D) 69-8104-0-7-402 (Trust Fund Share of
Operations).
(2) Level of receipts plus interest.--The term
``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) Total airport and airway trust fund funding.--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 would
cause total budget resources in a fiscal year for
aviation investment programs described in subsection
(b) to be less than the amount required by subsection
(a)(1)(A) for such fiscal year.
(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.
Sec. 48115. Modernization surcharge
(a) In General.--
(1) Not later than October 1, 2008, the Administrator
of the Federal Aviation Administration shall impose a
surcharge of $25 per flight for air traffic control
costs. Except as provided in subsection (b), owners or
operators of aircraft in the national airspace system
shall pay the surcharges assessed under this section.
(2) Surcharge credited as offsetting collections.--
Any surcharge collected under this section shall,
subject to appropriation made in advance--
(A) be deposited in an Air Traffic
Modernization Fund which shall be established
in the Treasury;
(B) be credited as offsetting collections to
the account established under section 48101 of
this title; and
(C) be available to the Administrator for
expenditure only to pay the costs of Next
Generation Air Transportation System projects
listed in the Capital Investment Plan required
by section 44501 and approved by the Air
Traffic Control Modernization Oversight Board.
(3) Effect of law on surcharge collection.--The
Administrator may continue to assess and collect and
spend surcharges established under this section during
any period in which the agency's funding is provided
under an Act providing continuing appropriations in
lieu of the agency's regular appropriations. The
Administrator may not assess or collect a surcharge
established under this section for any fiscal year for
which no annual appropriations Act is enacted that
appropriates at least the amount authorized by section
48101 for that fiscal year less the amount required by
section 48116(c).
(b) Exceptions.--
(1) Military and certain other aircraft.--A surcharge
may not be assessed under this section for military
aircraft, public aircraft (as defined in section 40102
of this subtitle), air ambulance aircraft, agricultural
aircraft, or for military or non-commercial civil
aircraft of a foreign government.
(2) Exemption applicability.--A surcharge may not be
assessed under this section for--
(A) piston engined aircraft; or
(B) turboprop or turboshaft aircraft
operating outside of controlled airspace.
(3) Flight plan information.--Any person required to
file a flight plan with the Administration, including
operators of flights described in paragraphs (1) and
(2), shall specify in the plan whether the person is
engaged in an operation for compensation or hire, a
general aviation operation, or a military or public
aircraft for operation for purposes of this section.
(4) Canada to canada flights.--The Administrator may
waive a surcharge that would otherwise be assessed
under this chapter for flights that operate in United
States-controlled airspace but takeoff and land at an
airport in Canada without an intermediate stop outside
Canada, if the Administrator determines that not
assessing and collecting the surcharge for such flights
would be in the public interest.
(5) Intrastate flights.--For the purpose of applying
this section to intrastate flights in a State that is
not contiguous with another State, a surcharge may not
be applied to any flight that originates or terminates
at an airport, or in airspace, that is not controlled
by a terminal radar approach control facility or a
Combined Center/Radar Approach Control facility or to
any flight that originates and terminates at an
airport, or in airspace, that is not controlled by a
terminal radar approach control facility or a Combined
Center/Radar Approach Control facility.
(6) Training flights.--The Administrator may grant an
exemption from a surcharge imposed under this
subsection to an individual intending to conduct
training flights. An individual seeking such an
exemption shall submit a request to the Administrator
in such form and manner as the Administrator may
require.
(c) Administrative Provisions.--
(1) Surcharges payable to the administrator.--
Surcharges assessed and amounts collected under this
section are payable to the Administrator. The
Administrator may refund any surcharge, or portion
thereof, paid by mistake in excess of the amount
required. The Administrator may enter into agreements
with other Federal agencies to collect surcharges
assessed under this section on behalf of the
Administration.
(2) Collection procedures.--The Administrator shall
establish procedures for the collection of surcharges.
These procedures shall establish the frequency of
payment, deadlines for payment, a maximum amount of
surcharges that may be outstanding on the account of
any person, and such other limitations and conditions
as the Administrator determines are necessary to obtain
prompt payment of surcharges.
(3) Failure to pay required surcharges.--If the
Administrator determines that any person has failed to
pay surcharges when due under this section, or to
comply with any limitation or condition on payment
under this section, or has failed to provide the
Administration with the correct information in the
person's flight plan or by other means regarding the
nature of the flight, including whether the person
engaged in an operation for compensation or hire or
general aviation operation, the Administrator may--
(A) assess interest charges, using a rate
equal to 150 percent of a rate determined by
the Secretary based on the average of bond
equivalent yields on 13-week Treasury bills
auctioned during the previous calendar quarter,
to be predetermined quarterly, on amounts that
have not been paid by the deadline;
(B) change the required payment schedule for
such person;
(C) offset any amount of surcharges owed by
withholding any payment otherwise owed or due
to the person by the Secretary or the
Administrator; or
(D) impose a civil penalty for each day
amounts remain unpaid, or take other
appropriate enforcement action under this
subtitle.
(4) Action when future payment in jeopardy.--If the
Administrator reasonably determines that an aircraft
owner or operator will not pay its required surcharges
when due, the Administrator may change the required
payment schedule for such person.
(d) Effect on Previous Provisions.--Unless otherwise
specified, nothing in this section shall be construed as
affecting fees previously authorized and established under
chapter 453.
(e) Administration of Surcharge.--The requirements applicable
to developing and issuing rules under subchapter II of chapter
5 of title 5 shall not apply to the actions of the Secretary or
the Administrator under this section.
(f) Definitions.--In this section:
(1) Agricultural aircraft.--The term ``agricultural
aircraft'' means an aircraft used to make aerial
applications for agricultural, forestry, or public
health purposes.
(2) Air ambulance aircraft.--The term ``air ambulance
aircraft'' means--
(A) rotorcraft which are engaged in an
operation to provide emergency medical
services; or
(B) fixed-wing aircraft which are equipped
for and exclusively dedicated to providing
acute care medical services.
(3) Flight.--The term ``flight'' means a takeoff and
landing by an aircraft.
Sec. 48116. Leveraged financing for next generation air traffic control
system
(a) In General.--
(1) In order to support the transition to the Next
Generation Air Transportation System, in fiscal years
2009 through 2025 the Secretary of Transportation is
authorized to issue obligations to finance capital
investments in the facilities and equipment account of
the air traffic control system to be owned and operated
by the Federal Aviation Administration.
(2) The Secretary shall not issue any obligations
under paragraph (1) without first obtaining approval by
the Director of the Office of Management and Budget of
the issuance of such obligations and proposed
investments to be financed.
(b) Conditions and Limit on Indebtedness.--Obligations issued
under this section shall be in such forms and denominations,
bear such maturities, and shall be subject to such terms and
conditions as may be prescribed by the Secretary. The aggregate
amount of all such obligations shall not exceed $5,000,000,000.
(c) Repayment.--The Secretary of Transportation shall use
revenues derived from the surcharges authorized by section
48115 in the amounts required to repay such obligations with
interest, and such payments shall have first priority in the
use of surcharges collected during this period. Beginning in
2009, any surcharges required to repay obligations shall be
collected notwithstanding section 48115(a)(3). These amounts
shall not be treated as discretionary offsetting collections,
but shall be treated as offsetting receipts and shall only be
used to repay the obligations incurred under paragraph (1).
(d) Interest Rate.--The interest rate on obligations issued
under this section shall be a rate determined by the Secretary,
taking into consideration the current market yields on
outstanding marketable obligations of the United States of
comparable maturity, plus a surcharge, determined by the
Secretary, to be sufficient to cover any potential losses and
the administrative costs associated with the obligations. Any
surcharges for administrative costs collected by the Secretary
shall be credited to the appropriation account which incurred
the cost.
(e) Purchase of Obligations.--For the purposes of purchasing
obligations under subsection (a), the Secretary may use as a
public debt transaction the proceeds from the sale of any
securities issued under chapter 31 of title 31, United States
Code, and the purposes for which securities may be issued under
such chapter are extended to include any purchase of such
obligations under this subsection.
SUBTITLE VII--AVIATION PROGRAMS
PART D--PUBLIC AIRPORTS
CHAPTER 491--METROPOLITAN WASHINGTON AIRPORTS
Sec. 49108. Limitations
After October 1, [2008,] 2011, 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
SEC. 186. MIDWAY ISLAND AIRPORT.
(a) Findings.--Congress finds that the continued operation of
the Midway Island Airport in accordance with the standards of
the Federal Aviation Administration applicable to commercial
airports is critical to the safety of commercial, military, and
general aviation in the mid- Pacific Ocean region.
(b) Memorandum of Understanding on Sale of Aircraft Fuel.--
The Secretaries of Transportation, Defense, Interior, and
Homeland Security shall enter into a memorandum of
understanding to facilitate the sale of aircraft fuel on Midway
Island at a price that will generate sufficient revenue to
improve the ability of the airport to operate on a self-
sustaining basis in accordance with the standards of the
Federal Aviation Administration applicable to commercial
airports. The memorandum shall also address the long-range
potential of promoting tourism as a means to generate revenue
to operate the airport.
(c) Transfer of Navigation Aids at Midway Island Airport.--
The Midway Island Airport may transfer, without consideration,
to the Administrator the navigation aids at the airport. The
Administrator shall accept the navigation aids and operate and
maintain the navigation aids under criteria of the
Administrator.
(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,] October 1, 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.
SEC. 406. CODE-SHARING PILOT PROGRAM.
[49 U.S.C. 41731 note]
(a) In General.--The Secretary of Transportation [shall] may
establish a pilot program under which the Secretary may require
air carriers providing service with compensation under
subchapter II of chapter 417 of title 49, United States Code,
and major air carriers (as defined in section 41716(a)(2) of
such title) serving large hub airports (as defined in section
40102 of such title) to participate in multiple code- share
arrangements consistent with normal industry practice whenever
and wherever the Secretary determines that such multiple code-
sharing arrangements would improve air transportation services.
(b) Limitation.--The Secretary may not require air carriers
to participate in the pilot program under this section for more
than 10 communities receiving service under subchapter II of
chapter 417 of title 49, United States Code.
SEC. 409. MEASUREMENT OF HIGHWAY MILES FOR PURPOSES OF DETERMINING
ELIGIBILITY OF ESSENTIAL AIR SERVICE SUBSIDIES.
[49 U.S.C. 41731 note]
(a) Request for Secretarial Review.--An eligible place (as
defined in section 41731 of title 49, United States Code) with
respect to which the Secretary has, in the 2-year period ending
on the date of enactment of this Act, eliminated (or
tentatively eliminated) compensation for essential air service
to such place, or terminated (or tentatively terminated) the
compensation eligibility of such place for essential air
service, under section 332 of the Department of Transportation
and Related Agencies Appropriations Act, 2000 (49 U.S.C. 41731
note), section 205 of the Wendell H. Ford Aviation Investment
and Reform Act for the 21st Century (49 U.S.C. 41731 note), or
any prior law of similar effect based on the highway mileage of
such place from the nearest hub airport (as defined in section
40102 of such title), may request the Secretary to review such
action.
(b) Determination of Mileage.--In reviewing an action under
subsection (a), the highway mileage between an eligible place
and the nearest medium hub airport or large hub airport is the
highway mileage of the most commonly used route between the
place and the medium hub airport or large hub airport. In
identifying such route, the Secretary shall identify the most
commonly used route for a community by--
(1) consulting with the Governor of a State or the
Governor's designee; and
(2) considering the certification of the Governor of
a State or the Governor's designee as to the most
commonly used route.
(c) Eligibility Determination.--Not later than 60 days after
receiving a request under subsection (a), the Secretary shall--
(1) determine whether the eligible place would have
been subject to an elimination of compensation
eligibility for essential air service, or termination
of the eligibility of such place for essential air
service, under the provisions of law referred to in
subsection (a) based on the determination of the
highway mileage of such place from the nearest medium
hub airport or large hub airport under subsection (b);
and
(2) issue a final order with respect to the
eligibility of such place for essential air service
compensation under subchapter II of chapter 417 of
title 49, United States Code.
(d) Limitation on Period of Final Order.--A final order
issued under subsection (c) shall terminate on [September 30,
2007.] September 30, 2011.
* * * * * * *
SEC. 708. FAA CENTER FOR EXCELLENCE FOR APPLIED RESEARCH AND TRAINING
IN THE USE OF ADVANCED MATERIALS IN TRANSPORT
AIRCRAFT.
[49 U.S.C. 44504 note]
(a) In General.--The Administrator of the Federal Aviation
Administration shall develop a Center for Excellence focused on
applied research and training on the durability and
maintainability of advanced materials in transport airframe
structures. The Center shall--
(1) promote and facilitate collaboration among
academia, the Federal Aviation Administration's
Transportation Division, and the commercial aircraft
industry, including manufacturers, commercial air
carriers, and suppliers; and
(2) establish goals set to advance technology,
improve engineering practices, and facilitate
continuing education in relevant areas of study.
(b) Authorization of Appropriations.--There is authorized to
be appropriated to the Administrator [$500,000 for fiscal year
2004] $1,000,000 for each of fiscal years 2008 through 2012 to
carry out this section.
SEC. 709. AIR TRANSPORTATION SYSTEM JOINT PLANNING AND DEVELOPMENT
OFFICE.
[49 U.S.C. 40101 note]
(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 responsibilities of the Office shall include--
(A) creating and carrying out an integrated plan for a
Next Generation Air Transportation System pursuant to
subsection (b);
(B) overseeing research and development on that
system;
(C) creating a transition plan for the implementation
of that system;
(D) coordinating aviation and aeronautics research
programs to achieve the goal of more effective and
directed programs that will result in applicable
research;
(E) coordinating goals and priorities and coordinating
research activities within the Federal Government with
United States aviation and aeronautical firms;
(F) coordinating the development and utilization of
new technologies to ensure that when available, they
may be used to their fullest potential in aircraft and
in the air traffic control system;
(G) facilitating the transfer of technology from
research programs such as the National Aeronautics and
Space Administration program and the Department of
Defense Advanced Research Projects Agency program to
Federal agencies with operational responsibilities and
to the private sector; and
(H) reviewing activities relating to noise, emissions,
fuel consumption, and safety conducted by Federal
agencies, including the Federal Aviation
Administration, the National Aeronautics and Space
Administration, the Department of Commerce, and the
Department of Defense.
(3)(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 Administrator of the Federal Aviation Administration,
the Secretary of Defense, the Administrator of the National
Aeronautics and Space Administration, the Secretary of
Commerce, the Secretary of Homeland Security, and the head of
any other Department or Federal agency from which the Secretary
of Transportation requests assistance under subparagraph (A)
shall designate an implementation office to be responsible
for--
(i) carrying out the Department or agency's Next
Generation Air Transportation System implementation
activities with the Office; and
(ii) liaison and coordination with other Departments
and agencies involved in Next Generation Air
Transportation System activities; and
(iii) managing all Next Generation Air Transportation
System programs for the Department or agency, including
necessary budgetary and staff resources, including, for
the Federal Aviation Administration, those projects
described in section 44501(b)(5) of title 49, United
States Code).
(C) The head of any such Department or agency shall ensure
that--
(i) the Department's or agency's Next Generation Air
Transportation System responsibilities are clearly
communicated to the designated office; and
(ii) the performance of supervisory personnel in that
office in carrying out the Department's or agency's
Next Generation Air Transportation System
responsibilities is reflected in their annual
performance evaluations and compensation decisions.
(D)(i) Within 6 months after the date of enactment of the
Aviation Investment and Modernization Act of 2007, the head of
each such Department or agency shall execute a memorandum of
understanding with the Office and with the other Departments
and agencies participating in the Next Generation Air
Transportation System project that--
(I) describes the respective responsibilities of each
such Department and agency, including budgetary
commitments; and
(II) the budgetary and staff resources committed to
the project.
(ii) The memorandum shall be revised as necessary to reflect
any changes in such responsibilities or commitments and be
reflected in each Department or agency's budget request.
(4) 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.
(5) The Director of the Office shall be a voting member of
the Federal Aviation Administration's Joint Resources Council
and the Air Traffic Organization's Executive Council.
(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) a national vision statement for an air
transportation system capable of meeting potential air
traffic demand by 2025;
(2) a description of the demand and the performance
characteristics that will be required of the Nation's
future air transportation system, and an explanation of
how those characteristics were derived, including the
national goals, objectives, and policies the system is
designed to further, and the underlying socioeconomic
determinants, and associated models and analyses;
(3) a multiagency [research and development roadmap]
implementation plan for creating the Next Generation
Air Transportation System with the characteristics
outlined under clause (ii), including--
(A) the most significant technical obstacles
and the research and development activities
necessary to overcome them, including for each
project, the role of each Federal agency,
corporations, and universities;
(B) the annual anticipated cost of carrying
out the research and development activities;
[and]
(C) the technical milestones that will be used
to evaluate the activities; and
(D) a schedule of rulemakings required to
issue regulations and guidelines for
implementation of the Next Generation Air
Transportation System within a timeframe
consistent with the integrated plan; and
(4) a description of the operational concepts and key
technologies to meet the system performance
requirements for all system [users] users, an
implementation plan, and a timeline and anticipated
expenditures needed to develop and deploy the system to
meet the vision for 2025.
Within 6 months after the date of enactment of the Aviation
Investment and Modernization Act of 2007, the Administrator
shall develop the implementation plan described in paragraph
(3) of this subsection and shall update it annually thereafter.
(c) Goals.--The Next Generation Air Transportation System
shall--
(1) improve the level of safety, security, efficiency,
quality, and affordability of the National Airspace
System and aviation services;
(2) take advantage of data from emerging ground-based
and space-based communications, navigation, and
surveillance technologies;
(3) integrate data streams from multiple agencies and
sources to enable situational awareness and seamless
global operations for all appropriate users of the
system, including users responsible for civil aviation,
homeland security, and national security;
(4) leverage investments in civil aviation, homeland
security, and national security and build upon current
air traffic management and infrastructure initiatives
to meet system performance requirements for all system
users;
(5) be scalable to accommodate and encourage
substantial growth in domestic and international
transportation and anticipate and accommodate
continuing technology upgrades and advances;
(6) accommodate a wide range of aircraft operations,
including airlines, air taxis, helicopters, general
aviation, and unmanned aerial vehicles; and
(7) take into consideration, to the greatest extent
practicable, design of airport approach and departure
flight paths to reduce exposure of noise and emissions
pollution on affected residents.
(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.
(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 COUNCIL.
[49 U.S.C. 40101 note]
(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.] Secretary and shall meet at least
once each quarter.
(b) Membership.--In addition to the Secretary, the senior
policy committee shall be composed of--
(1) the Administrator of the Federal Aviation
Administration (or the Administrator's designee);
(2) the Administrator of the National Aeronautics and
Space Administration (or the Administrator's designee);
(3) the Secretary of Defense (or the Secretary's
designee);
(4) the Secretary of Homeland Security (or the
Secretary's designee);
(5) the Secretary of Commerce (or the Secretary's
designee);
(6) the Director of the Office of Science and
Technology Policy (or the Director's designee); and
(7) designees from other Federal agencies determined
by the Secretary of Transportation to have an important
interest in, or responsibility for, other aspects of
the system.
(c) Function.--The senior policy committee shall--
(1) advise the Secretary of Transportation regarding
the national goals and strategic objectives for the
transformation of the Nation's air transportation
system to meet its future needs;
(2) provide policy guidance for the integrated plan
for the air transportation system to be developed by
the Next Generation Air Transportation System Joint
Planning and Development Office;
(3) provide ongoing policy review for the
transformation of the air transportation system;
(4) identify resource needs and make recommendations
to their respective agencies for necessary funding for
planning, research, and development activities; and
(5) make legislative recommendations, as appropriate,
for the future air transportation system.
(d) Consultation.--In carrying out its functions under this
section, the senior policy committee shall consult with, and
ensure participation by, the private sector (including
representatives of general aviation, commercial aviation,
aviation labor, and the space industry), members of the public,
and other interested parties and may do so through a special
advisory committee composed of such representatives.
* * * * * * *
NATIONAL PARKS AIR TRANSPORTATION MANAGEMENT ACT OF 2000
[49 U.S.C. 40128 note]
SEC. 804. QUIET AIRCRAFT TECHNOLOGY FOR GRAND CANYON.
(a) Quiet Technology Requirements.--Within 12 months after
the date of the enactment of this Act, the Administrator shall
designate reasonably achievable requirements for fixed-wing and
helicopter aircraft necessary for such aircraft to be
considered as employing quiet aircraft technology for purposes
of this section. If the Administrator determines that the
Administrator will not be able to make such designation before
the last day of such 12-month period, the Administrator shall
transmit to Congress a report on the reasons for not meeting
such time period and the expected date of such designation.
(b) Routes or Corridors.--In consultation with the [Director]
Secretary of the Interior and the advisory group established
under section 805, the Administrator shall establish, by rule,
routes or corridors for commercial air tour operations (as
defined in section 40128(f) of title 49, United States Code) by
fixed-wing and helicopter aircraft that employ quiet aircraft
technology for--
(1) tours of the Grand Canyon originating in Clark
County, Nevada; and
(2) ``local loop'' tours originating at the Grand
Canyon National Park Airport, in Tusayan, Arizona,
provided that such routes or corridors can be located
in areas that will not negatively impact the
substantial restoration of natural quiet, tribal lands,
or safety.
(c) Operational Caps.--Commercial air tour operations by any
fixed-wing or helicopter aircraft that employs quiet aircraft
technology and that replaces an existing aircraft shall not be
subject to the operational flight allocations that apply to
other commercial air tour operations of the Grand Canyon,
provided that the cumulative impact of such operations does not
increase noise at the Grand Canyon.
(d) Modification of Existing Aircraft To Meet Standards.--A
commercial air tour operation by a fixed-wing or helicopter
aircraft in a commercial air tour operator's fleet on the date
of the enactment of this Act that meets the requirements
designated under subsection (a), or is subsequently modified to
meet the requirements designated under subsection (a), may be
used for commercial air tour operations under the same terms
and conditions as a replacement aircraft under subsection (c)
without regard to whether it replaces an existing aircraft.
(e) Mandate to Restore Natural Quiet.--Nothing in this Act
shall be construed to relieve or diminish--
(1) the statutory mandate imposed upon the Secretary
of the Interior and the Administrator of the Federal
Aviation Administration under Public Law 100-91 (16
U.S.C. 1a-1 note) to achieve the substantial
restoration of the natural quiet and experience at the
Grand Canyon National Park; and
(2) the obligations of the Secretary and the
Administrator to promulgate forthwith regulations to
achieve the substantial restoration of the natural
quiet and experience at the Grand Canyon National Park.
SEC. 805. ADVISORY GROUP.
(a) Establishment.--Not later than 1 year after the date of
the enactment of this Act, the Administrator and the [Director
of the National Park Service] Secretary of the Interior shall
jointly establish an advisory group to provide continuing
advice and counsel with respect to commercial air tour
operations over and near national parks.
(b) Membership.--(1) In general.--The advisory group shall be
composed of--
(A) a balanced group of--
(i) representatives of general aviation;
(ii) representatives of commercial air tour
operators;
(iii) representatives of environmental
concerns; and
(iv) representatives of Indian tribes;
(B) a representative of the Federal Aviation
Administration; and
(C) a representative of the [National Park Service]
Department of the Interior.
(2) Ex officio members.--The Administrator (or the designee
of the Administrator) and the [Director] Secretary of the
Interior (or the designee of the [Director] Secretary of the
Interior) shall serve as ex officio members.
(3) Chairperson.--The representative of the Federal Aviation
Administration and the representative of the [National Park
Service] Department of the Interior shall serve alternating 1-
year terms as chairman of the advisory group, with the
representative of the Federal Aviation Administration serving
initially until the end of the calendar year following the year
in which the advisory group is first appointed.
(c) Duties.--The advisory group shall provide advice,
information, and recommendations to the Administrator and the
[Director] Secretary of the Interior--
(1) on the implementation of this title and the
amendments made by this title;
(2) on commonly accepted quiet aircraft technology
for use in commercial air tour operations over a
national park or tribal lands, which will receive
preferential treatment in a given air tour management
plan;
(3) on other measures that might be taken to
accommodate the interests of visitors to national
parks; and
(4) at the request of the Administrator and the
[Director] Secretary of the Interior, safety,
environmental, and other issues related to commercial
air tour operations over a national park or tribal
lands.
(d) Compensation; Support; FACA.--(1) Compensation and
travel.--Members of the advisory group who are not officers or
employees of the United States, while attending conferences or
meetings of the group or otherwise engaged in its business, or
while serving away from their homes or regular places of
business, may be allowed travel expenses, including per diem in
lieu of subsistence, as authorized by section 5703 of title 5,
United States Code, for persons in the Government service
employed intermittently.
(2) Administrative support.--The Federal Aviation
Administration and the [National Park Service] Department of
the Interior shall jointly furnish to the advisory group
clerical and other assistance.
(3) Nonapplication of FACA.--Section 14 of the Federal
Advisory Committee Act (5 U.S.C. App.) does not apply to the
advisory group.
* * * * * * *
SEC. 807. REPORTS.
(a) Overflight Fee Report.--Not later than 180 days after the
date of the enactment of this Act, the Administrator shall
transmit to Congress a report on the effects overflight fees
are likely to have on the commercial air tour operation
industry. The report shall include, but shall not be limited
to--
(1) the viability of a tax credit for the commercial
air tour operators equal to the amount of any
overflight fees charged by the [National Park Service]
Department of the Interior; and
(2) the financial effects proposed offsets are likely
to have on Federal Aviation Administration budgets and
appropriations.
(b) Quiet Aircraft Technology Report.--Not later than 2 years
after the date of the enactment of this Act, the Administrator
and the [Director of the National Park Service] Secretary of
the Interior shall jointly transmit a report to Congress on the
effectiveness of this title in providing incentives for the
development and
* * * * * * *
RAILWAY LABOR ACT
[45 U.S.C. 156]
SEC. 6. PROCEDURE IN CHANGING RATES OF PAY, RULES, OR WORKING
CONDITIONS.
Carriers and representatives of the employees shall give at
least thirty days' written notice of an intended change in
[agreements] agreements, including changes sought in the
context of a merger or acquisition involving the carrier,
affecting rates of pay, rules, or working conditions, and the
time and place for the beginning of conference between the
representatives of the parties interested in such intended
changes shall be agreed upon within ten days after the receipt
of said notice, and said time shall be within the thirty days
provided in the notice. In every case where such notice of
intended change has been given, or conferences are being held
with reference thereto, or the services of the Mediation Board
have been requested by either party, or said Board has
proffered its services, rates of pay, rules, or working
conditions shall not be altered by the carrier until the
controversy has been finally acted upon as required by section
5 of this Act, by the Mediation Board, unless a period of ten
days has elapsed after termination of conferences without
request for or proffer of the services of the Mediation Board.