FAA Modernization Act

112TH CONGRESS
"
2d Session

HOUSE OF REPRESENTATIVES

!

REPORT
112–381

FAA MODERNIZATION AND REFORM ACT OF
2012

CONFERENCE REPORT
TO ACCOMPANY

H.R. 658

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FEBRUARY 1, 2012.—Ordered to be printed

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FAA MODERNIZATION AND REFORM ACT OF 2012

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112TH CONGRESS
"
2d Session

HOUSE OF REPRESENTATIVES

!

REPORT
112–381

FAA MODERNIZATION AND REFORM ACT OF
2012

CONFERENCE REPORT
TO ACCOMPANY

H.R. 658

U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON

72–595

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FEBRUARY 1, 2012.—Ordered to be printed

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112TH CONGRESS
" HOUSE OF REPRESENTATIVES
2d Session

!

REPORT
112–381

FAA MODERNIZATION AND REFORM ACT OF 2012

FEBRUARY 1, 2012.—Ordered to be printed

Mr. MICA, from the committee of conference,
submitted the following

CONFERENCE REPORT
[To accompany H.R. 658]

The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R. 658),
to amend title 49, United States Code, to authorize appropriations
for the Federal Aviation Administration for fiscal years 2011
through 2014, to streamline programs, create efficiencies, reduce
waste, and improve aviation safety and capacity, to provide stable
funding for the national aviation system, and for other purposes,
having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:
That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as
follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited

as the ‘‘FAA Modernization and Reform Act of 2012’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Effective date.
TITLE I—AUTHORIZATIONS

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Subtitle A—Funding of FAA Programs
Sec. 101. Airport planning and development and noise compatibility planning and
programs.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. FAA operations.

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Sec. 104. Funding for aviation programs.
Sec. 105. Delineation of Next Generation Air Transportation System projects.
Subtitle B—Passenger Facility Charges
Sec. 111. Passenger facility charges.
Sec. 112. GAO study of alternative means of collecting PFCs.
Sec. 113. Qualifications-based selection.
Subtitle C—Fees for FAA Services
Sec. 121. Update on overflights.
Sec. 122. Registration fees.
Sec.
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131.
132.
133.
134.
135.
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.

Sec. 151.
Sec. 152.
Sec. 153.

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Sec. 154.
Sec. 155.
Sec. 156.

Subtitle D—Airport Improvement Program Modifications
Airport master plans.
AIP definitions.
Recycling plans for airports.
Contents of competition plans.
Grant assurances.
Agreements granting through-the-fence access to general aviation airports.
Government share of project costs.
Allowable project costs.
Veterans’ preference.
Minority and disadvantaged business participation.
Special apportionment rules.
United States territories minimum guarantee.
Reducing apportionments.
Marshall Islands, Micronesia, and Palau.
Use of apportioned amounts.
Designating current and former military airports.
Contract tower program.
Resolution of disputes concerning airport fees.
Sale of private airports to public sponsors.
Repeal of certain limitations on Metropolitan Washington Airports Authority.
Midway Island Airport.
Miscellaneous amendments.
Extension of grant authority for compatible land use planning and projects
by State and local governments.
Priority review of construction projects in cold weather States.
Study on national plan of integrated airport systems.
Airport privatization program.

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

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Sec. 223. Educational requirements.
Sec. 224. Air traffic controller staffing initiatives and analysis.
Sec. 225. Reports on status of greener skies project.
TITLE III—SAFETY
Subtitle A—General Provisions
Sec. 301. Judicial review of denial of airman certificates.
Sec. 302. Release of data relating to abandoned type certificates and supplemental
type certificates.
Sec. 303. Design and production organization certificates.
Sec. 304. Cabin crew communication.
Sec. 305. Line check evaluations.
Sec. 306. Safety of air ambulance operations.
Sec. 307. Prohibition on personal use of electronic devices on flight deck.
Sec. 308. Inspection of repair stations located outside the United States.
Sec. 309. Enhanced training for flight attendants.
Sec. 310. Limitation on disclosure of safety information.
Sec. 311. Prohibition against aiming a laser pointer at an aircraft.
Sec. 312. Aircraft certification process review and reform.
Sec. 313. Consistency of regulatory interpretation.
Sec. 314. Runway safety.
Sec. 315. Flight Standards Evaluation Program.
Sec. 316. Cockpit smoke.
Sec. 317. Off-airport, low-altitude aircraft weather observation technology.
Sec. 318. Feasibility of requiring helicopter pilots to use night vision goggles.
Sec. 319. Maintenance providers.
Sec. 320. Study of air quality in aircraft cabins.
Sec. 321. Improved pilot licenses.
Subtitle B—Unmanned Aircraft Systems
Sec. 331. Definitions.
Sec. 332. Integration of civil unmanned aircraft systems into national airspace system.
Sec. 333. Special rules for certain unmanned aircraft systems.
Sec. 334. Public unmanned aircraft systems.
Sec. 335. Safety studies.
Sec. 336. Special rule for model aircraft.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

341.
342.
343.
344.
345.
346.
347.

Subtitle C—Safety and Protections
Aviation Safety Whistleblower Investigation Office.
Postemployment restrictions for flight standards inspectors.
Review of air transportation oversight system database.
Improved voluntary disclosure reporting system.
Duty periods and flight time limitations applicable to flight crewmembers.
Certain existing flight time limitations and rest requirements.
Emergency locator transmitters on general aviation aircraft.
TITLE IV—AIR SERVICE IMPROVEMENTS

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

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

Sec.
Sec.
Sec.
Sec.

509.
510.
511.
512.

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

Sec.
Sec.
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Sec.
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Sec.
Sec.
Sec.
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601.
602.
603.
604.
605.
606.
607.
608.
609.
610.
611.

TITLE VI—FAA EMPLOYEES AND ORGANIZATION
Federal Aviation Administration personnel management system.
Presidential rank award program.
Collegiate training initiative study.
Frontline manager staffing.
FAA technical training and staffing.
Safety critical staffing.
Air traffic control specialist qualification training.
FAA air traffic controller staffing.
Air traffic controller training and scheduling.
FAA facility conditions.
Technical correction.

Sec.
Sec.
Sec.
Sec.
Sec.
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501.
502.
503.
504.
505.
506.

Sec. 507.
Sec. 508.

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

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Sec.
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801.
802.
803.
804.
805.
806.

Sec.
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807.
808.
809.
810.
811.
812.
813.
814.

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TITLE VIII—MISCELLANEOUS
Disclosure of data to Federal agencies in interest of national security.
FAA authority to conduct criminal history record checks.
Civil penalties technical amendments.
Consolidation and realignment of FAA services and facilities.
Limiting access to flight decks of all-cargo aircraft.
Consolidation or elimination of obsolete, redundant, or otherwise unnecessary reports; use of electronic media format.
Prohibition on use of certain funds.
Study on aviation fuel prices.
Wind turbine lighting.
Air-rail code sharing study.
D.C. Metropolitan Area Special Flight Rules Area.
FAA review and reform.
Use of mineral revenue at certain airports.
Contracting.

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Sec.
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815.
816.
817.
818.
819.
820.
821.

Sec.
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822.
823.
824.
825.
826.

Sec.
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827.
828.
829.
830.

Flood planning.
Historical aircraft documents.
Release from restrictions.
Sense of Congress.
Human Intervention Motivation Study.
Study of aeronautical mobile telemetry.
Clarification of requirements for volunteer pilots operating charitable medical flights.
Pilot program for redevelopment of airport properties.
Report on New York City and Newark air traffic control facilities.
Cylinders of compressed oxygen or other oxidizing gases.
Orphan aviation earmarks.
Privacy protections for air passenger screening with advanced imaging
technology.
Commercial space launch license requirements.
Air transportation of lithium cells and batteries.
Clarification of memorandum of understanding with OSHA.
Approval of applications for the airport security screening opt-out program.

Sec.
Sec.

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

Sec.
Sec.
Sec.
Sec.

1001.
1002.
1003.
1004.

Sec.
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TITLE X—NATIONAL MEDIATION BOARD
Rulemaking authority.
Runoff election rules.
Bargaining representative certification.
Oversight.

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

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TITLE XII—COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO-ACT OF 2010
Sec. 1201. Compliance provision.
SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or

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a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 49, United
States Code.
SEC. 3. EFFECTIVE DATE.

Except as otherwise expressly provided, this Act and the amendments made by this Act shall take effect on the date of enactment
of this Act.
TITLE I—AUTHORIZATIONS
Subtitle A—Funding of FAA Programs
SEC. 101. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY PLANNING AND PROGRAMS.
(a) AUTHORIZATION.—Section 48103 is amended to read as fol-

lows:
‘‘§ 48103. Airport planning and development and noise compatibility planning and programs
‘‘(a) IN GENERAL.—There shall be available to the Secretary of
Transportation out of the Airport and Airway Trust Fund established under section 9502 of the Internal Revenue Code of 1986 to
make grants for airport planning and airport development under
section 47104, airport noise compatibility planning under section
47505(a)(2), and carrying out noise compatibility programs under
section 47504(c) $3,350,000,000 for each of fiscal years 2012
through 2015.
‘‘(b) AVAILABILITY OF AMOUNTS.—Amounts made available
under subsection (a) shall remain available until expended.’’.
(b) OBLIGATIONAL AUTHORITY.—Section 47104(c) is amended in
the matter preceding paragraph (1) by striking ‘‘After’’ and all the
follows before ‘‘the Secretary’’ and inserting ‘‘After September 30,
2015,’’.
SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section

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

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SEC. 103. FAA OPERATIONS.
(a) IN GENERAL.—Section

106(k)(1) is amended by striking subparagraphs (A) through (H) and inserting the following:
‘‘(A) $9,653,000,000 for fiscal year 2012;
‘‘(B) $9,539,000,000 for fiscal year 2013;
‘‘(C) $9,596,000,000 for fiscal year 2014; and
‘‘(D) $9,653,000,000 for fiscal year 2015.’’.
(b) AUTHORIZED EXPENDITURES.—Section 106(k)(2) is amended—
(1) by striking subparagraphs (A), (B), (C), and (D);

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(2) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (A), (B), and (C), respectively; and
(3) in subparagraphs (A), (B), and (C) (as so redesignated)
by striking ‘‘2004 through 2007’’ and inserting ‘‘2012 through
2015’’.
(c) AUTHORITY TO TRANSFER FUNDS.—Section 106(k) is amended by adding at the end the following:
‘‘(3) ADMINISTERING PROGRAM WITHIN AVAILABLE FUNDING.—Notwithstanding any other provision of law, in each of
fiscal years 2012 through 2015, if the Secretary determines that
the funds appropriated under paragraph (1) are insufficient to
meet the salary, operations, and maintenance expenses of the
Federal Aviation Administration, as authorized by this section,
the Secretary shall reduce nonsafety-related activities of the Administration as necessary to reduce such expenses to a level that
can be met by the funding available under paragraph (1).’’.

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SEC. 104. FUNDING FOR AVIATION PROGRAMS.
(a) AIRPORT AND AIRWAY TRUST FUND

GUARANTEE.—Section
48114(a)(1)(A) is amended to read as follows:
‘‘(A) IN GENERAL.—The total budget resources made
available from the Airport and Airway Trust Fund each
fiscal year pursuant to sections 48101, 48102, 48103, and
106(k) shall—
‘‘(i) in fiscal year 2013, be equal to 90 percent of
the estimated level of receipts plus interest credited to
the Airport and Airway Trust Fund for that fiscal year;
and
‘‘(ii) in fiscal year 2014 and each fiscal year thereafter, be equal to the sum of—
‘‘(I) 90 percent of the estimated level of receipts
plus interest credited to the Airport and Airway
Trust Fund for that fiscal year; and
‘‘(II) the actual level of receipts plus interest
credited to the Airport and Airway Trust Fund for
the second preceding fiscal year minus the total
amount made available for obligation from the
Airport and Airway Trust Fund for the second preceding fiscal year.
Such amounts may be used only for the aviation investment
programs listed in subsection (b)(1).’’.
(b) TECHNICAL CORRECTION.—Section 48114(a)(1)(B) is amended by striking ‘‘subsection (b)’’ and inserting ‘‘subsection (b)(1)’’.
(c) ADDITIONAL AUTHORIZATIONS OF APPROPRIATIONS FROM THE
GENERAL FUND.—Section 48114(a)(2) is amended by striking ‘‘2007’’
and inserting ‘‘2015’’.
(d) ESTIMATED LEVEL OF RECEIPTS PLUS INTEREST DEFINED.—
Section 48114(b)(2) is amended—
(1) in the paragraph heading by striking ‘‘LEVEL’’ and inserting ‘‘ESTIMATED LEVEL’’; and
(2) by striking ‘‘level of receipts plus interest’’ and inserting
‘‘estimated level of receipts plus interest’’.
(e) ENFORCEMENT OF GUARANTEES.—Section 48114(c)(2) is
amended by striking ‘‘2007’’ and inserting ‘‘2015’’.

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

Section 44501(b) is amended—
(1) in paragraph (3) by striking ‘‘and’’ after the semicolon;
(2) in paragraph (4)(B) by striking ‘‘defense.’’ and inserting
‘‘defense; and’’; and
(3) by adding at the end the following:
‘‘(5) a list of capital projects that are part of the Next Generation Air Transportation System and funded by amounts appropriated under section 48101(a).’’.
Subtitle B—Passenger Facility Charges
SEC. 111. PASSENGER FACILITY CHARGES.
(a) PFC DEFINED.—Section 40117(a)(5)

is amended to read as

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follows:
‘‘(5) PASSENGER FACILITY CHARGE.—The term ‘passenger facility charge’ means a charge or fee imposed under this section.’’.
(b) PILOT PROGRAM FOR PFC AUTHORIZATIONS AT NONHUB AIRPORTS.—Section 40117(l) is amended—
(1) by striking paragraph (7); and
(2) by redesignating paragraph (8) as paragraph (7).
(c) CORRECTION OF REFERENCES.—
(1) SECTION 40117.—Section 40117 is amended—
(A) in the section heading by striking ‘‘fees’’ and inserting ‘‘charges’’;
(B) in the heading for subsection (e) by striking ‘‘FEES’’
and inserting ‘‘CHARGES’’;
(C) in the heading for subsection (l) by striking ‘‘FEE’’
and inserting ‘‘CHARGE’’;
(D) in the heading for paragraph (5) of subsection (l)
by striking ‘‘FEE’’ and inserting ‘‘CHARGE’’;
(E) in the heading for subsection (m) by striking
‘‘FEES’’ and inserting ‘‘CHARGES’’;
(F) in the heading for paragraph (1) of subsection (m)
by striking ‘‘FEES’’ and inserting ‘‘CHARGES’’;
(G) by striking ‘‘fee’’ each place it appears (other than
the second sentence of subsection (g)(4)) and inserting
‘‘charge’’; and
(H) by striking ‘‘fees’’ each place it appears and inserting ‘‘charges’’.
(2) OTHER REFERENCES.—
(A) Subtitle VII is amended by striking ‘‘fee’’ and inserting ‘‘charge’’ each place it appears in each of the following sections:
(i) Section 47106(f)(1).
(ii) Section 47110(e)(5).
(iii) Section 47114(f).
(iv) Section 47134(g)(1).
(v) Section 47139(b).
(vi) Section 47521.
(vii) Section 47524(e).
(viii) Section 47526(2).
(B) Section 47521(5) is amended by striking ‘‘fees’’ and
inserting ‘‘charges’’.

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(3) CLERICAL AMENDMENT.—The analysis for chapter 401 is
amended by striking the item relating to section 40117 and inserting the following:
‘‘40117. Passenger facility charges.’’.
SEC. 112. GAO STUDY OF ALTERNATIVE MEANS OF COLLECTING PFCS.
(a) IN GENERAL.—The Comptroller General of the United States

shall conduct a study of alternative means of collecting passenger
facility charges imposed under section 40117 of title 49, United
States Code, that would permit such charges to be collected without
being included in the ticket price. In conducting the study, the
Comptroller General shall consider, at a minimum—
(1) collection options for arriving, connecting, and departing passengers at airports;
(2) cost sharing or allocation methods based on passenger
travel to address connecting traffic; and
(3) examples of airport charges collected by domestic and
international airports that are not included in ticket prices.
(b) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Comptroller General shall submit to the Committee
on Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives a report on the study, including the Comptroller
General’s findings, conclusions, and recommendations.
SEC. 113. QUALIFICATIONS-BASED SELECTION.

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

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SEC. 121. UPDATE ON OVERFLIGHTS.
(a) ESTABLISHMENT AND ADJUSTMENT

OF FEES.—Section
45301(b) is amended to read as follows:
‘‘(b) ESTABLISHMENT AND ADJUSTMENT OF FEES.—
‘‘(1) IN GENERAL.—In establishing and adjusting fees under
this section, the Administrator shall ensure that the fees are
reasonably related to the Administration’s costs, as determined
by the Administrator, of providing the services rendered.
‘‘(2) SERVICES FOR WHICH COSTS MAY BE RECOVERED.—
Services for which costs may be recovered under this section include the costs of air traffic control, navigation, weather services, training, and emergency services that are available to facilitate safe transportation over the United States and the costs
of other services provided by the Administrator, or by programs
financed by the Administrator, to flights that neither take off
nor land in the United States.
‘‘(3) LIMITATIONS ON JUDICIAL REVIEW.—Notwithstanding
section 702 of title 5 or any other provision of law, the following
actions and other matters shall not be subject to judicial review:
‘‘(A) The establishment or adjustment of a fee by the
Administrator under this section.
‘‘(B) The validity of a determination of costs by the Administrator under paragraph (1), and the processes and

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10
procedures applied by the Administrator when reaching
such determination.
‘‘(C) An allocation of costs by the Administrator under
paragraph (1) to services provided, and the processes and
procedures applied by the Administrator when establishing
such allocation.
‘‘(4) AIRCRAFT ALTITUDE.—Nothing in this section shall require the Administrator to take into account aircraft altitude in
establishing any fee for aircraft operations in en route or oceanic airspace.
‘‘(5) COSTS DEFINED.—In this subsection, the term ‘costs’ includes operation and maintenance costs, leasing costs, and overhead expenses associated with the services provided and the facilities and equipment used in providing such services.’’.
(b) ADJUSTMENT OF FEES.—Section 45301 is amended by adding at the end the following:
‘‘(e) ADJUSTMENT OF FEES.—In addition to adjustments under
subsection (b), the Administrator may periodically adjust the fees established under this section.’’.
SEC. 122. REGISTRATION FEES.
(a) IN GENERAL.—Chapter

453 is amended by adding at the

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end the following:
‘‘§ 45305. Registration, certification, and related fees
‘‘(a) GENERAL AUTHORITY AND FEES.—Subject to subsection (b),
the Administrator of the Federal Aviation Administration shall establish and collect a fee for each of the following services and activities of the Administration that does not exceed the estimated costs
of the service or activity:
‘‘(1) Registering an aircraft.
‘‘(2) Reregistering, replacing, or renewing an aircraft registration certificate.
‘‘(3) Issuing an original dealer’s aircraft registration certificate.
‘‘(4) Issuing an additional dealer’s aircraft registration certificate (other than the original).
‘‘(5) Issuing a special registration number.
‘‘(6) Issuing a renewal of a special registration number reservation.
‘‘(7) Recording a security interest in an aircraft or aircraft
part.
‘‘(8) Issuing an airman certificate.
‘‘(9) Issuing a replacement airman certificate.
‘‘(10) Issuing an airman medical certificate.
‘‘(11) Providing a legal opinion pertaining to aircraft registration or recordation.
‘‘(b) LIMITATION ON COLLECTION.—No fee may be collected
under this section unless the expenditure of the fee to pay the costs
of activities and services for which the fee is imposed is provided for
in advance in an appropriations Act.
‘‘(c) FEES CREDITED AS OFFSETTING COLLECTIONS.—
‘‘(1) IN GENERAL.—Notwithstanding section 3302 of title 31,
any fee authorized to be collected under this section shall—

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11
‘‘(A) be credited as offsetting collections to the account
that finances the activities and services for which the fee is
imposed;
‘‘(B) be available for expenditure only to pay the costs
of activities and services for which the fee is imposed, including all costs associated with collecting the fee; and
‘‘(C) remain available until expended.
‘‘(2) CONTINUING APPROPRIATIONS.—The Administrator
may continue to assess, collect, and spend fees established
under this section during any period in which the funding for
the Federal Aviation Administration is provided under an Act
providing continuing appropriations in lieu of the Administration’s regular appropriations.
‘‘(3) ADJUSTMENTS.—The Administrator shall adjust a fee
established under subsection (a) for a service or activity if the
Administrator determines that the actual cost of the service or
activity is higher or lower than was indicated by the cost data
used to establish such fee.’’.
(b) CLERICAL AMENDMENT.—The analysis for chapter 453 is
amended by adding at the end the following:
‘‘45305. Registration, certification, and related fees.’’.

(c) FEES INVOLVING AIRCRAFT NOT
TATION.—Section 45302(e) is amended—

PROVIDING AIR TRANSPOR-

(1) by striking ‘‘A fee’’ and inserting the following:
‘‘(1) IN GENERAL.—A fee’’; and
(2) by adding at the end the following:
‘‘(2) EFFECT OF IMPOSITION OF OTHER FEES.—A fee may not
be imposed for a service or activity under this section during
any period in which a fee for the same service or activity is imposed under section 45305.’’.
Subtitle D—Airport Improvement Program Modifications
SEC. 131. AIRPORT MASTER PLANS.

Section 47101(g)(2) is amended—
(1) in subparagraph (B) by striking ‘‘and’’ at the end;
(2) by redesignating subparagraph (C) as subparagraph
(D); and
(3) by inserting after subparagraph (B) the following:
‘‘(C) consider passenger convenience, airport ground access, and access to airport facilities; and’’.
SEC. 132. AIP DEFINITIONS.
(a) AIRPORT DEVELOPMENT.—Section

47102(3) is amended—
(1) in subparagraph (B)(iv) by striking ‘‘20’’ and inserting

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‘‘9’’;
(2) in subparagraph (G) by inserting ‘‘and including acquiring glycol recovery vehicles,’’ after ‘‘aircraft,’’; and
(3) by adding at the end the following:
‘‘(M) construction of mobile refueler parking within a
fuel farm at a nonprimary airport meeting the requirements of section 112.8 of title 40, Code of Federal Regulations.
‘‘(N) terminal development under section 47119(a).
‘‘(O) acquiring and installing facilities and equipment
to provide air conditioning, heating, or electric power from

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12
terminal-based, nonexclusive use facilities to aircraft
parked at a public use airport for the purpose of reducing
energy use or harmful emissions as compared to the provision of such air conditioning, heating, or electric power
from aircraft-based systems.’’.
(b) AIRPORT PLANNING.—Section 47102(5) is amended to read
as follows:
‘‘(5) ‘airport planning’ means planning as defined by regulations the Secretary prescribes and includes—
‘‘(A) integrated airport system planning;
‘‘(B) developing an environmental management system;
and
‘‘(C) developing a plan for recycling and minimizing
the generation of airport solid waste, consistent with applicable State and local recycling laws, including the cost of
a waste audit.’’.
(c) GENERAL AVIATION AIRPORT.—Section 47102 is amended—
(1) by redesignating paragraphs (23) through (25) as paragraphs (25) through (27), respectively;
(2) by redesignating paragraphs (8) through (22) as paragraphs (9) through (23), respectively; and
(3) by inserting after paragraph (7) the following:
‘‘(8) ‘general aviation airport’ means a public airport that
is located in a State and that, as determined by the Secretary—
‘‘(A) does not have scheduled service; or
‘‘(B) has scheduled service with less than 2,500 passenger boardings each year.’’.
(d) REVENUE PRODUCING AERONAUTICAL SUPPORT FACILITIES.—Section 47102 is amended by inserting after paragraph (23)
(as redesignated by subsection (c)(2) of this section) the following:
‘‘(24) ‘revenue producing aeronautical support facilities’
means fuel farms, hangar buildings, self-service credit card
aeronautical fueling systems, airplane wash racks, major rehabilitation of a hangar owned by a sponsor, or other aeronautical
support facilities that the Secretary determines will increase the
revenue producing ability of the airport.’’.
(e) TERMINAL DEVELOPMENT.—Section 47102 (as amended by
subsection (c) of this section) is further amended by adding at the
end the following:
‘‘(28) ‘terminal development’ means—
‘‘(A) development of—
‘‘(i) an airport passenger terminal building, including terminal gates;
‘‘(ii) access roads servicing exclusively airport traffic that leads directly to or from an airport passenger
terminal building; and
‘‘(iii) walkways that lead directly to or from an airport passenger terminal building; and
‘‘(B) the cost of a vehicle described in section
47119(a)(1)(B).’’.

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SEC. 133. RECYCLING PLANS FOR AIRPORTS.

Section 47106(a) is amended—
(1) in paragraph (4) by striking ‘‘and’’ at the end;
(2) in paragraph (5) by striking ‘‘proposed.’’ and inserting
‘‘proposed; and’’; and

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(3) by adding at the end the following:
‘‘(6) if the project is for an airport that has an airport master plan, the master plan addresses issues relating to solid
waste recycling at the airport, including—
‘‘(A) the feasibility of solid waste recycling at the airport;
‘‘(B) minimizing the generation of solid waste at the
airport;
‘‘(C) operation and maintenance requirements;
‘‘(D) the review of waste management contracts; and
‘‘(E) the potential for cost savings or the generation of
revenue.’’.
SEC. 134. CONTENTS OF COMPETITION PLANS.

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

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SEC. 135. GRANT ASSURANCES.
(a)
GENERAL
WRITTEN

ASSURANCES.—Section
47107(a)(16)(D)(ii) is amended by inserting before the semicolon at
the end the following: ‘‘, except in the case of a relocation or replacement of an existing airport facility that meets the conditions of section 47110(d)’’.
(b) WRITTEN ASSURANCES ON ACQUIRING LAND.—
(1) USE OF PROCEEDS.—Section 47107(c)(2) is amended—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i) by striking
‘‘purpose—’’ and inserting ‘‘purpose (including land
serving as a noise buffer either by being undeveloped or
developed in a way that is compatible with using the
land for noise buffering purposes)—’’;
(ii) in clause (iii) by striking ‘‘paid to the Secretary’’ and all that follows before the semicolon and
inserting ‘‘reinvested in another project at the airport
or transferred to another airport as the Secretary prescribes under paragraph (4)’’; and
(B) in subparagraph (B)(iii) by striking ‘‘reinvested, on
application’’ and all that follows before the period at the
end and inserting ‘‘reinvested in another project at the airport or transferred to another airport as the Secretary prescribes under paragraph (4)’’.
(2) ELIGIBLE PROJECTS.—Section 47107(c) is amended by
adding at the end the following:
‘‘(4) In approving the reinvestment or transfer of proceeds under
paragraph (2)(A)(iii) or (2)(B)(iii), the Secretary shall give preference, in descending order, to the following actions:
‘‘(A) Reinvestment in an approved noise compatibility
project.
‘‘(B) Reinvestment in an approved project that is eligible for
funding under section 47117(e).
‘‘(C) Reinvestment in an approved airport development
project that is eligible for funding under section 47114, 47115,
or 47117.

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14
‘‘(D) Transfer to a sponsor of another public airport to be
reinvested in an approved noise compatibility project at that
airport.
‘‘(E) Payment to the Secretary for deposit in the Airport and
Airway Trust Fund established under section 9502 of the Internal Revenue Code of 1986.
‘‘(5)(A) A lease at fair market value by an airport owner or operator of land acquired for a noise compatibility purpose using a
grant provided under this subchapter shall not be considered a disposal for purposes of paragraph (2).
‘‘(B) The airport owner or operator may use revenues from a
lease described in subparagraph (A) for an approved airport development project that is eligible for funding under section 47114,
47115, or 47117.
‘‘(C) The Secretary shall coordinate with each airport owner or
operator to ensure that leases described in subparagraph (A) are
consistent with noise buffering purposes.
‘‘(D) The provisions of this paragraph apply to all land acquired before, on, or after the date of enactment of this paragraph.’’.

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SEC. 136. AGREEMENTS GRANTING THROUGH-THE-FENCE ACCESS TO
GENERAL AVIATION AIRPORTS.
(a) IN GENERAL.—Section 47107 is amended by adding at the

end the following:
‘‘(t) AGREEMENTS GRANTING THROUGH-THE-FENCE ACCESS TO
GENERAL AVIATION AIRPORTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), a sponsor of a
general aviation airport shall not be considered to be in violation of this subtitle, or to be in violation of a grant assurance
made under this section or under any other provision of law as
a condition for the receipt of Federal financial assistance for
airport development, solely because the sponsor enters into an
agreement that grants to a person that owns residential real
property adjacent to or near the airport access to the airfield of
the airport for the following:
‘‘(A) Aircraft of the person.
‘‘(B) Aircraft authorized by the person.
‘‘(2) THROUGH-THE-FENCE AGREEMENTS.—
‘‘(A) IN GENERAL.—An agreement described in paragraph (1) between an airport sponsor and a property owner
(or an association representing such property owner) shall
be a written agreement that prescribes the rights, responsibilities, charges, duration, and other terms the airport
sponsor determines are necessary to establish and manage
the airport sponsor’s relationship with the property owner.
‘‘(B) TERMS AND CONDITIONS.—An agreement described
in paragraph (1) between an airport sponsor and a property
owner (or an association representing such property owner)
shall require the property owner, at minimum—
‘‘(i) to pay airport access charges that, as determined by the airport sponsor, are comparable to those
charged to tenants and operators on-airport making
similar use of the airport;
‘‘(ii) to bear the cost of building and maintaining
the infrastructure that, as determined by the airport
sponsor, is necessary to provide aircraft located on the

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15
property adjacent to or near the airport access to the
airfield of the airport;
‘‘(iii) to maintain the property for residential, noncommercial use for the duration of the agreement;
‘‘(iv) to prohibit access to the airport from other
properties through the property of the property owner;
and
‘‘(v) to prohibit any aircraft refueling from occurring on the property.’’.
(b) APPLICABILITY.—The amendment made by subsection (a)
shall apply to an agreement between an airport sponsor and a property owner (or an association representing such property owner) entered into before, on, or after the date of enactment of this Act.
SEC. 137. GOVERNMENT SHARE OF PROJECT COSTS.

Section 47109 is amended—
(1) in subsection (a) by striking ‘‘provided in subsection (b)
or subsection (c) of this section’’ and inserting ‘‘otherwise provided in this section’’; and
(2) by adding at the end the following:
‘‘(e) SPECIAL RULE FOR TRANSITION FROM SMALL HUB TO MEDIUM HUB STATUS.—If the status of a small hub airport changes to
a medium hub airport, the Government’s share of allowable project
costs for the airport may not exceed 90 percent for the first 2 fiscal
years after such change in hub status.
‘‘(f) SPECIAL RULE FOR ECONOMICALLY DISTRESSED COMMUNITIES.—The Government’s share of allowable project costs shall be
95 percent for a project at an airport that—
‘‘(1) is receiving essential air service for which compensation was provided to an air carrier under subchapter II of chapter 417; and
‘‘(2) is located in an area that meets one or more of the criteria established in section 301(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3161(a)), as determined by the Secretary of Commerce.’’.

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SEC. 138. ALLOWABLE PROJECT COSTS.
(a) ALLOWABLE PROJECT COSTS.—Section

47110(b)(2)(D) is
amended to read as follows:
‘‘(D) if the cost is for airport development and is incurred
before execution of the grant agreement, but in the same fiscal
year as execution of the grant agreement, and if—
‘‘(i) the cost was incurred before execution of the grant
agreement because the airport has a shortened construction
season due to climactic conditions in the vicinity of the airport;
‘‘(ii) the cost is in accordance with an airport layout
plan approved by the Secretary and with all statutory and
administrative requirements that would have been applicable to the project if the project had been carried out after
execution of the grant agreement, including submission of
a complete grant application to the appropriate regional or
district office of the Federal Aviation Administration;
‘‘(iii) the sponsor notifies the Secretary before authorizing work to commence on the project;

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16
‘‘(iv) the sponsor has an alternative funding source
available to fund the project; and
‘‘(v) the sponsor’s decision to proceed with the project in
advance of execution of the grant agreement does not affect
the priority assigned to the project by the Secretary for the
allocation of discretionary funds;’’.
(b) INCLUSION OF MEASURES TO IMPROVE EFFICIENCY OF AIRPORT BUILDINGS IN AIRPORT IMPROVEMENT PROJECTS.—Section
47110(b) is amended—
(1) in paragraph (5) by striking ‘‘; and’’ and inserting a
semicolon;
(2) in paragraph (6) by striking the period at the end and
inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(7) if the cost is incurred on a measure to improve the efficiency of an airport building (such as a measure designed to
meet one or more of the criteria for being considered a high-performance green building as set forth under section 401(13) of
the Energy Independence and Security Act of 2007 (42 U.S.C.
17061(13))) and—
‘‘(A) the measure is for a project for airport development;
‘‘(B) the measure is for an airport building that is otherwise eligible for construction assistance under this subchapter; and
‘‘(C) if the measure results in an increase in initial
project costs, the increase is justified by expected savings
over the life cycle of the project.’’.
(c) RELOCATION OF AIRPORT-OWNED FACILITIES.—Section
47110(d) is amended to read as follows:
‘‘(d) RELOCATION OF AIRPORT-OWNED FACILITIES.—The Secretary may determine that the costs of relocating or replacing an
airport-owned facility are allowable for an airport development
project at an airport only if—
‘‘(1) the Government’s share of such costs will be paid with
funds apportioned to the airport sponsor under section
47114(c)(1) or 47114(d);
‘‘(2) the Secretary determines that the relocation or replacement is required due to a change in the Secretary’s design
standards; and
‘‘(3) the Secretary determines that the change is beyond the
control of the airport sponsor.’’.
(d) NONPRIMARY AIRPORTS.—Section 47110(h) is amended—
(1) by inserting ‘‘construction’’ before ‘‘costs of revenue producing’’; and
(2) by striking ‘‘, including fuel farms and hangars,’’.
(e) BIRD-DETECTING RADAR SYSTEMS.—Section 47110 is amended by adding at the end the following:
‘‘(i) BIRD-DETECTING RADAR SYSTEMS.—The Administrator of
the Federal Aviation Administration, upon the conclusion of all
planned research by the Administration regarding avian radar systems, shall—
‘‘(1) update Advisory Circular No. 150/5220–25 to specify
which systems have been studied; and

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17
‘‘(2) within 180 days after such research is concluded, issue
a final report on the use of avian radar systems in the national
airspace system.’’.
SEC. 139. VETERANS’ PREFERENCE.

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

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SEC. 140. MINORITY AND DISADVANTAGED BUSINESS PARTICIPATION.
(a) FINDINGS.—Congress finds the following:

(1) While significant progress has occurred due to the establishment of the airport disadvantaged business enterprise program (49 U.S.C. 47107(e) and 47113), discrimination and related barriers continue to pose significant obstacles for
minority- and women-owned businesses seeking to do business
in airport-related markets across the Nation. These continuing
barriers merit the continuation of the airport disadvantaged
business enterprise program.
(2) Congress has received and reviewed testimony and documentation of race and gender discrimination from numerous
sources, including congressional hearings and roundtables, scientific reports, reports issued by public and private agencies,
news stories, reports of discrimination by organizations and individuals, and discrimination lawsuits. This testimony and
documentation shows that race- and gender-neutral efforts
alone are insufficient to address the problem.
(3) This testimony and documentation demonstrates that
discrimination across the Nation poses a barrier to full and fair

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18
participation in airport-related businesses of women business
owners and minority business owners in the racial groups detailed in parts 23 and 26 of title 49, Code of Federal Regulations, and has impacted firm development and many aspects of
airport-related business in the public and private markets.
(4) This testimony and documentation provides a strong
basis that there is a compelling need for the continuation of the
airport disadvantaged business enterprise program and the airport concessions disadvantaged business enterprise program to
address race and gender discrimination in airport-related business.
(b) STANDARDIZING CERTIFICATION OF DISADVANTAGED BUSINESS ENTERPRISES.—Section 47113 is amended by adding at the
end the following:
‘‘(e) MANDATORY TRAINING PROGRAM.—
‘‘(1) IN GENERAL.—Not later than 1 year after the date of
enactment of this subsection, the Secretary shall establish a
mandatory training program for persons described in paragraph (3) to provide streamlined training on certifying whether
a small business concern qualifies as a small business concern
owned and controlled by socially and economically disadvantaged individuals under this section and section 47107(e).
‘‘(2) IMPLEMENTATION.—The training program may be implemented by one or more private entities approved by the Secretary.
‘‘(3) PARTICIPANTS.—A person referred to in paragraph (1)
is an official or agent of an airport sponsor—
‘‘(A) who is required to provide a written assurance
under this section or section 47107(e) that the airport
owner or operator will meet the percentage goal of subsection (b) of this section or section 47107(e)(1), as the case
may be; or
‘‘(B) who is responsible for determining whether or not
a small business concern qualifies as a small business concern owned and controlled by socially and economically
disadvantaged individuals under this section or section
47107(e).’’.
(c) INSPECTOR GENERAL REPORT ON PARTICIPATION IN FAA
PROGRAMS BY DISADVANTAGED SMALL BUSINESS CONCERNS.—
(1) IN GENERAL.—For each of fiscal years 2013 through
2015, the Inspector General of the Department of Transportation shall submit to Congress a report on the number of new
small business concerns owned and controlled by socially and
economically disadvantaged individuals, including those owned
by veterans, that participated in the programs and activities
funded using the amounts made available under this Act.
(2) NEW SMALL BUSINESS CONCERNS.—For purposes of subsection (a), a new small business concern is a small business
concern that did not participate in the programs and activities
described in subsection (a) in a previous fiscal year.
(3) CONTENTS.—The report shall include—
(A) a list of the top 25 and bottom 25 large and medium hub airports in terms of providing opportunities for
small business concerns owned and controlled by socially
and economically disadvantaged individuals to participate

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in the programs and activities funded using the amounts
made available under this Act;
(B) the results of an assessment, to be conducted by the
Inspector General, on the reasons why the top airports have
been successful in providing such opportunities; and
(C) recommendations to the Administrator of the Federal Aviation Administration and Congress on methods for
other airports to achieve results similar to those of the top
airports.
SEC. 141. SPECIAL APPORTIONMENT RULES.
(a) ELIGIBILITY TO RECEIVE PRIMARY AIRPORT MINIMUM APPORTIONMENT AMOUNT.—Section 47114(d) is amended by adding at

the end the following:
‘‘(7) ELIGIBILITY

TO RECEIVE PRIMARY AIRPORT MINIMUM APPORTIONMENT AMOUNT.—Notwithstanding any other provision

of this subsection, the Secretary may apportion to an airport
sponsor in a fiscal year an amount equal to the minimum apportionment available under subsection (c)(1)(B) if the Secretary
finds that the airport—
‘‘(A) received scheduled or unscheduled air service from
a large certificated air carrier (as defined in part 241 of
title 14, Code of Federal Regulations, or such other regulations as may be issued by the Secretary under the authority
of section 41709) in the calendar year used to calculate the
apportionment; and
‘‘(B) had more than 10,000 passenger boardings in the
calendar year used to calculate the apportionment.’’.
(b) SPECIAL RULE FOR FISCAL YEARS 2012 AND 2013.—Section
47114(c)(1) is amended—
(1) by striking subparagraphs (F) and (G); and
(2) by inserting after subparagraph (E) the following:
‘‘(F) SPECIAL RULE FOR FISCAL YEARS 2012 AND 2013.—
Notwithstanding subparagraph (A), for an airport that had
more than 10,000 passenger boardings and scheduled passenger aircraft service in calendar year 2007, but in either
calendar year 2009 or 2010, or in both years, the number
of passenger boardings decreased to a level below 10,000
boardings per year at such airport, the Secretary may apportion in each of fiscal years 2012 and 2013 to the sponsor
of such airport an amount equal to the amount apportioned
to that sponsor in fiscal year 2009.’’.
SEC. 142. UNITED STATES TERRITORIES MINIMUM GUARANTEE.

Section 47114 is amended by adding at the end the following:
‘‘(g) SUPPLEMENTAL APPORTIONMENT FOR PUERTO RICO AND
UNITED STATES TERRITORIES.—The Secretary shall apportion
amounts for airports in Puerto Rico and all other United States territories in accordance with this section. This subsection does not
prohibit the Secretary from making project grants for airports in
Puerto Rico or other United States territories from the discretionary
fund under section 47115.’’.
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SEC. 143. REDUCING APPORTIONMENTS.

Section 47114(f)(1) is amended by striking subparagraphs (A)
and (B) and inserting the following:
‘‘(A) in the case of a charge of $3.00 or less—

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‘‘(i) except as provided in clause (ii), 50 percent of
the projected revenues from the charge in the fiscal
year but not by more than 50 percent of the amount
that otherwise would be apportioned under this section;
or
‘‘(ii) with respect to an airport in Hawaii, 50 percent of the projected revenues from the charge in the
fiscal year but not by more than 50 percent of the excess of—
‘‘(I) the amount that otherwise would be apportioned under this section; over
‘‘(II) the amount equal to the amount specified
in subclause (I) multiplied by the percentage of the
total passenger boardings at the applicable airport
that are comprised of interisland passengers; and
‘‘(B) in the case of a charge of more than $3.00—
‘‘(i) except as provided in clause (ii), 75 percent of
the projected revenues from the charge in the fiscal
year but not by more than 75 percent of the amount
that otherwise would be apportioned under this section;
or
‘‘(ii) with respect to an airport in Hawaii, 75 percent of the projected revenues from the charge in the
fiscal year but not by more than 75 percent of the excess of—
‘‘(I) the amount that otherwise would be apportioned under this section; over
‘‘(II) the amount equal to the amount specified
in subclause (I) multiplied by the percentage of the
total passenger boardings at the applicable airport
that are comprised of interisland passengers.’’.
SEC. 144. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

Section 47115(j) is amended by striking ‘‘For fiscal years’’ and
all that follows before ‘‘the sponsors’’ and inserting ‘‘For fiscal years
2012 through 2015,’’.
SEC. 145. USE OF APPORTIONED AMOUNTS.

Section 47117(e)(1)(A) is amended—
(1) by striking ‘‘35 percent’’ in the first sentence and inserting ‘‘35 percent, but not more than $300,000,000,’’;
(2) by striking ‘‘and’’ after ‘‘47141,’’;
(3) by striking ‘‘et seq.).’’ and inserting ‘‘et seq.), and for
water quality mitigation projects to comply with the Act of June
30, 1948 (33 U.S.C. 1251 et seq.), approved in an environmental
record of decision for an airport development project under this
title.’’; and
(4) by striking ‘‘such 35 percent requirement is’’ in the second sentence and inserting ‘‘the requirements of the preceding
sentence are’’.

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SEC. 146. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.
(a) CONSIDERATIONS.—Section 47118(c) is amended—

(1) in paragraph (1) by striking ‘‘or’’ after the semicolon;
(2) in paragraph (2) by striking ‘‘delays.’’ and inserting
‘‘delays; or’’; and
(3) by adding at the end the following:

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‘‘(3) preserve or enhance minimum airfield infrastructure
facilities at former military airports to support emergency diversionary operations for transoceanic flights in locations—
‘‘(A) within United States jurisdiction or control; and
‘‘(B) where there is a demonstrable lack of diversionary
airports within the distance or flight-time required by regulations governing transoceanic flights.’’.
(b) DESIGNATION OF GENERAL AVIATION AIRPORTS.—Section
47118(g) is amended—
(1) in the subsection heading by striking ‘‘AIRPORT’’ and inserting ‘‘AIRPORTS’’; and
(2) by striking ‘‘one of the airports bearing a designation
under subsection (a) may be a general aviation airport that was
a former military installation’’ and inserting ‘‘3 of the airports
bearing designations under subsection (a) may be general aviation airports that were former military installations’’.
(c) SAFETY-CRITICAL AIRPORTS.—Section 47118 is amended by
adding at the end the following:
‘‘(h) SAFETY-CRITICAL AIRPORTS.—Notwithstanding any other
provision of this chapter, a grant under section 47117(e)(1)(B) may
be made for a federally owned airport designated under subsection
(a) if the grant is for a project that is—
‘‘(1) to preserve or enhance minimum airfield infrastructure
facilities described in subsection (c)(3); and
‘‘(2) necessary to meet the minimum safety and emergency
operational requirements established under part 139 of title 14,
Code of Federal Regulations.’’.
SEC. 147. CONTRACT TOWER PROGRAM.
(a) COST-BENEFIT REQUIREMENT.—Section

47124(b) is amend-

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ed—
(1) in paragraph (1)—
(A) by striking ‘‘(1) The Secretary’’ and inserting the
following:
‘‘(1) CONTRACT TOWER PROGRAM.—
‘‘(A) CONTINUATION.—The Secretary’’; and
(B) by adding at the end the following:
‘‘(B) SPECIAL RULE.—If the Secretary determines that a
tower already operating under the program continued
under this paragraph has a benefit-to-cost ratio of less than
1.0, the airport sponsor or State or local government having
jurisdiction over the airport shall not be required to pay the
portion of the costs that exceeds the benefit for a period of
18 months after such determination is made.
‘‘(C) USE OF EXCESS FUNDS.—If the Secretary finds
that all or part of an amount made available to carry out
the program continued under this paragraph is not required during a fiscal year, the Secretary may use, during
such fiscal year, the amount not so required to carry out the
program established under paragraph (3).’’; and
(2) in paragraph (2) by striking ‘‘(2) The Secretary’’ and inserting the following:
‘‘(2) GENERAL AUTHORITY.—The Secretary’’.
(b) FUNDING; USE OF EXCESS FUNDS.—Section 47124(b)(3) is
amended by striking subparagraph (E) and inserting the following:

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‘‘(E) FUNDING.—Of the amounts appropriated pursuant
to section 106(k)(1), not more than $10,350,000 for each of
fiscal years 2012 through 2015 may be used to carry out
this paragraph.
‘‘(F) USE OF EXCESS FUNDS.—If the Secretary finds that
all or part of an amount made available under this paragraph is not required during a fiscal year, the Secretary
may use, during such fiscal year, the amount not so required to carry out the program continued under paragraph (1).’’.
(c) FEDERAL SHARE.—Section 47124(b)(4)(C) is amended by
striking ‘‘$1,500,000’’ and inserting ‘‘$2,000,000’’.
(d) SAFETY AUDITS.—Section 47124 is amended by adding at
the end the following:
‘‘(c) SAFETY AUDITS.—The Secretary shall establish uniform
standards and requirements for regular safety assessments of air
traffic control towers that receive funding under this section.’’.
SEC. 148. RESOLUTION OF DISPUTES CONCERNING AIRPORT FEES.
(a) IN GENERAL.—Section 47129 is amended—

(1) by striking the section heading and inserting the following:
‘‘§ 47129. Resolution of disputes concerning airport fees’’;
(2) by inserting ‘‘AND FOREIGN AIR CARRIER’’ after ‘‘CARRIER’’ in the heading for subsection (d);
(3) by inserting ‘‘AND FOREIGN AIR CARRIER’’ after ‘‘CARRIER’’
in the heading for subsection (d)(2);
(4) by striking ‘‘air carrier’’ each place it appears and inserting ‘‘air carrier or foreign air carrier’’;
(5) by striking ‘‘air carrier’s’’ each place it appears and inserting ‘‘air carrier’s or foreign air carrier’s’’;
(6) by striking ‘‘air carriers’’ and inserting ‘‘air carriers or
foreign air carriers’’; and
(7) by striking ‘‘(as defined in section 40102 of this title)’’
in subsection (a) and inserting ‘‘(as those terms are defined in
section 40102)’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 471 is
amended by striking the item relating to section 47129 and inserting the following:
‘‘47129. Resolution of disputes concerning airport fees.’’.

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SEC. 149. SALE OF PRIVATE AIRPORTS TO PUBLIC SPONSORS.
(a) IN GENERAL.—Section 47133(b) is amended—

(1) by striking ‘‘Subsection (a) shall not apply if’’ and inserting the following:
‘‘(1) PRIOR LAWS AND AGREEMENTS.—Subsection (a) shall
not apply if’’; and
(2) by adding at the end the following:
‘‘(2) SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR.—In the
case of a privately owned airport, subsection (a) shall not apply
to the proceeds from the sale of the airport to a public sponsor
if—
‘‘(A) the sale is approved by the Secretary;

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‘‘(B) funding is provided under this subchapter for any
portion of the public sponsor’s acquisition of airport land;
and
‘‘(C) an amount equal to the remaining unamortized
portion of any airport improvement grant made to that airport for purposes other than land acquisition, amortized
over a 20-year period, plus an amount equal to the Federal
share of the current fair market value of any land acquired
with an airport improvement grant made to that airport on
or after October 1, 1996, is repaid to the Secretary by the
private owner.
‘‘(3) TREATMENT OF REPAYMENTS.—Repayments referred to
in paragraph (2)(C) shall be treated as a recovery of prior year
obligations.’’.
(b) APPLICABILITY TO GRANTS.—The amendments made by subsection (a) shall apply to grants issued on or after October 1, 1996.
SEC. 150. REPEAL OF CERTAIN LIMITATIONS ON METROPOLITAN
WASHINGTON AIRPORTS AUTHORITY.

Section 49108, and the item relating to section 49108 in the
analysis for chapter 491, are repealed.
SEC. 151. MIDWAY ISLAND AIRPORT.

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

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SEC. 152. MISCELLANEOUS AMENDMENTS.
(a) TECHNICAL CHANGES TO NATIONAL PLAN OF
AIRPORT SYSTEMS.—Section 47103 is amended—

INTEGRATED

(1) in subsection (a)—
(A) by striking ‘‘each airport to—’’ and inserting ‘‘the
airport system to—’’;
(B) in paragraph (1) by striking ‘‘system in the particular area;’’ and inserting ‘‘system, including connection
to the surface transportation network; and’’;
(C) in paragraph (2) by striking ‘‘; and’’ and inserting
a period; and
(D) by striking paragraph (3);
(2) in subsection (b)—
(A) in paragraph (1) by striking the semicolon and inserting ‘‘; and’’;
(B) by striking paragraph (2) and redesignating paragraph (3) as paragraph (2); and
(C) in paragraph (2) (as so redesignated) by striking ‘‘,
Short Takeoff and Landing/Very Short Takeoff and Landing aircraft operations,’’; and
(3) in subsection (d) by striking ‘‘status of the’’.
(b) CONSOLIDATION OF TERMINAL DEVELOPMENT PROVISIONS.—
Section 47119 is amended—
(1) by redesignating subsections (a), (b), (c), and (d) as subsections (b), (c), (d), and (e), respectively;
(2) by inserting before subsection (b) (as so redesignated)
the following:
‘‘(a) TERMINAL DEVELOPMENT PROJECTS.—

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24
‘‘(1) IN GENERAL.—The Secretary of Transportation may approve a project for terminal development (including multimodal
terminal development) in a nonrevenue-producing public-use
area of a commercial service airport—
‘‘(A) if the sponsor certifies that the airport, on the date
the grant application is submitted to the Secretary, has—
‘‘(i) all the safety equipment required for certification of the airport under section 44706;
‘‘(ii) all the security equipment required by regulation; and
‘‘(iii) provided for access by passengers to the area
of the airport for boarding or exiting aircraft that are
not air carrier aircraft;
‘‘(B) if the cost is directly related to moving passengers
and baggage in air commerce within the airport, including
vehicles for moving passengers between terminal facilities
and between terminal facilities and aircraft; and
‘‘(C) under terms necessary to protect the interests of
the Government.
‘‘(2) PROJECT IN REVENUE-PRODUCING AREAS AND NONREVENUE-PRODUCING PARKING LOTS.—In making a decision under
paragraph (1), the Secretary may approve as allowable costs the
expenses of terminal development in a revenue-producing area
and construction, reconstruction, repair, and improvement in a
nonrevenue-producing parking lot if—
‘‘(A) except as provided in section 47108(e)(3), the airport does not have more than .05 percent of the total annual passenger boardings in the United States; and
‘‘(B) the sponsor certifies that any needed airport development project affecting safety, security, or capacity will not
be deferred because of the Secretary’s approval.’’;
(3) in subsection (b)(4)(B) (as redesignated by paragraph (1)
of this subsection) by striking ‘‘Secretary of Transportation’’ and
inserting ‘‘Secretary’’;
(4) in subsections (b)(3) and (b)(4)(A) (as redesignated by
paragraph (1) of this subsection) by striking ‘‘section 47110(d)’’
and inserting ‘‘subsection (a)’’;
(5) in subsection (b)(5) (as redesignated by paragraph (1) of
this subsection) by striking ‘‘subsection (b)(1) and (2)’’ and inserting ‘‘subsections (c)(1) and (c)(2)’’;
(6) in subsections (c)(1), (c)(2)(A), (c)(3), and (c)(4) (as redesignated by paragraph (1) of this subsection) by striking ‘‘section
47110(d) of this title’’ and inserting ‘‘subsection (a)’’;
(7) in subsections (c)(2)(B) and (c)(5) (as redesignated by
paragraph (1) of this subsection) by striking ‘‘section 47110(d)’’
and inserting ‘‘subsection (a)’’; and
(8) by adding at the end the following:
‘‘(f) LIMITATION ON DISCRETIONARY FUNDS.—The Secretary may
distribute not more than $20,000,000 from the discretionary fund
established under section 47115 for terminal development projects
at a nonhub airport or a small hub airport that is eligible to receive
discretionary funds under section 47108(e)(3).’’.
(c) ANNUAL REPORT.—Section 47131(a) is amended—
(1) by striking ‘‘April 1’’ and inserting ‘‘June 1’’; and

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(2) by striking paragraphs (1), (2), (3), and (4) and inserting the following:
‘‘(1) a summary of airport development and planning completed;
‘‘(2) a summary of individual grants issued;
‘‘(3) an accounting of discretionary and apportioned funds
allocated;
‘‘(4) the allocation of appropriations; and’’.
(d) CORRECTION TO EMISSION CREDITS PROVISION.—Section
47139 is amended—
(1) in subsection (a) by striking ‘‘47102(3)(F),’’; and
(2) in subsection (b)—
(A) by striking ‘‘47102(3)(F),’’; and
(B) by striking ‘‘47103(3)(F),’’.
(e) CONFORMING AMENDMENTS.—
(1) Section 40117(a)(3)(B) is amended by striking ‘‘section
47110(d)’’ and inserting ‘‘section 47119(a)’’.
(2) Section 47108(e)(3) is amended—
(A) by striking ‘‘section 47110(d)(2)’’ and inserting ‘‘section 47119(a)’’; and
(B) by striking ‘‘section 47110(d)’’ and inserting ‘‘section 47119(a)’’.
(f) CORRECTION TO SURPLUS PROPERTY AUTHORITY.—Section
47151(e) is amended by striking ‘‘(other than real property’’ and all
that follows through ‘‘(10 U.S.C. 2687 note))’’.
(g) DEFINITIONS.—
(1) CONGESTED AIRPORT.—Section 47175(2) is amended by
striking ‘‘2001’’ and inserting ‘‘2004 or any successor report’’.
(2) JOINT USE AIRPORT.—Section 47175 is amended by adding at the end the following:
‘‘(7) JOINT USE AIRPORT.—The term ‘joint use airport’
means an airport owned by the Department of Defense, at
which both military and civilian aircraft make shared use of
the airfield.’’.
SEC. 153. EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND
USE PLANNING AND PROJECTS BY STATE AND LOCAL
GOVERNMENTS.

Section 47141(f) is amended to read as follows:
‘‘(f) SUNSET.—This section shall not be in effect after September
30, 2015.’’.
SEC. 154. PRIORITY REVIEW OF CONSTRUCTION PROJECTS IN COLD
WEATHER STATES.

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

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SEC. 155. STUDY ON NATIONAL PLAN OF INTEGRATED AIRPORT SYSTEMS.
(a) IN GENERAL.—Not later than 90 days after the date of en-

actment of this Act, the Secretary of Transportation shall begin a
study to evaluate the formulation of the national plan of integrated
airport systems (in this section referred to as the ‘‘plan’’) under section 47103 of title 49, United States Code.

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

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SEC. 156. AIRPORT PRIVATIZATION PROGRAM.

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

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TITLE II—NEXTGEN AIR TRANSPORTATION SYSTEM AND
AIR TRAFFIC CONTROL MODERNIZATION
SEC. 201. DEFINITIONS.

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

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SEC. 202. NEXTGEN DEMONSTRATIONS AND CONCEPTS.

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

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(18) NextGen Performance Based Navigation Metroplex
Area Navigation/Required Navigation Performance.
SEC. 203. CLARIFICATION OF AUTHORITY TO ENTER INTO REIMBURSABLE AGREEMENTS.

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

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SEC. 204. CHIEF NEXTGEN OFFICER.

Section 106 is amended by adding at the end the following:
‘‘(s) CHIEF NEXTGEN OFFICER.—
‘‘(1) IN GENERAL.—
‘‘(A) APPOINTMENT.—There shall be a Chief NextGen
Officer appointed by the Administrator, with the approval
of the Secretary. The Chief NextGen Officer shall report directly to the Administrator and shall be subject to the authority of the Administrator.
‘‘(B) QUALIFICATIONS.—The Chief NextGen Officer shall
have a demonstrated ability in management and knowledge
of or experience in aviation and systems engineering.
‘‘(C) TERM.—The Chief NextGen Officer shall be appointed for a term of 5 years.
‘‘(D) REMOVAL.—The Chief NextGen Officer shall serve
at the pleasure of the Administrator, except that the Administrator shall make every effort to ensure stability and
continuity in the leadership of the implementation of
NextGen.
‘‘(E) VACANCY.—Any individual appointed to fill a vacancy in the position of Chief NextGen Officer occurring before the expiration of the term for which the individual’s
predecessor was appointed shall be appointed for the remainder of that term.
‘‘(2) COMPENSATION.—
‘‘(A) IN GENERAL.—The Chief NextGen Officer shall be
paid at an annual rate of basic pay to be determined by the
Administrator. The annual rate may not exceed the annual
compensation paid under section 102 of title 3. The Chief
NextGen Officer shall be subject to the postemployment provisions of section 207 of title 18 as if the position of Chief
NextGen Officer were described in section 207(c)(2)(A)(i) of
that title.
‘‘(B) BONUS.—In addition to the annual rate of basic
pay authorized by subparagraph (A), the Chief NextGen Officer may receive a bonus for any calendar year not to exceed 30 percent of the annual rate of basic pay, based upon
the Administrator’s evaluation of the Chief NextGen Officer’s performance in relation to the performance goals set
forth in the performance agreement described in paragraph
(3).
‘‘(3) ANNUAL PERFORMANCE AGREEMENT.—The Administrator and the Chief NextGen Officer, in consultation with the
Federal Aviation Management Advisory Council, shall enter
into an annual performance agreement that sets forth measurable organization and individual goals for the Chief NextGen
Officer in key operational areas. The agreement shall be subject
to review and renegotiation on an annual basis.

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‘‘(4) ANNUAL PERFORMANCE REPORT.—The Chief NextGen
Officer shall prepare and transmit to the Secretary of Transportation, the Committee on Transportation and Infrastructure of
the House of Representatives, the Committee on Science, Space,
and Technology of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate
an annual management report containing such information as
may be prescribed by the Secretary.
‘‘(5) RESPONSIBILITIES.—The responsibilities of the Chief
NextGen Officer include the following:
‘‘(A) Implementing NextGen activities and budgets
across all program offices of the Federal Aviation Administration.
‘‘(B) Coordinating the implementation of NextGen activities with the Office of Management and Budget.
‘‘(C) Reviewing and providing advice on the Administration’s modernization programs, budget, and cost accounting system with respect to NextGen.
‘‘(D) With respect to the budget of the Administration—
‘‘(i) developing a budget request of the Administration related to the implementation of NextGen;
‘‘(ii) submitting such budget request to the Administrator; and
‘‘(iii) ensuring that the budget request supports the
annual and long-range strategic plans of the Administration with respect to NextGen.
‘‘(E) Consulting with the Administrator on the Capital
Investment Plan of the Administration prior to its submission to Congress.
‘‘(F) Developing an annual NextGen implementation
plan.
‘‘(G) Ensuring that NextGen implementation activities
are planned in such a manner as to require that system architecture is designed to allow for the incorporation of novel
and currently unknown technologies into NextGen in the
future and that current decisions do not bias future decisions unfairly in favor of existing technology at the expense
of innovation.
‘‘(H) Coordinating with the NextGen Joint Planning
and Development Office with respect to facilitating cooperation among all Federal agencies whose operations and interests are affected by the implementation of NextGen.
‘‘(6) EXCEPTION.—If the Administrator appoints as the
Chief NextGen Officer, pursuant to paragraph (1)(A), an Executive Schedule employee covered by section 5315 of title 5, then
paragraphs (1)(B), (1)(C), (2), and (3) of this subsection shall
not apply to such employee.
‘‘(7) NEXTGEN DEFINED.—For purposes of this subsection,
the term ‘NextGen’ means the Next Generation Air Transportation System.’’.

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SEC. 205. DEFINITION OF AIR NAVIGATION FACILITY.

Section 40102(a)(4) is amended—
(1) by redesignating subparagraph (D) as subparagraph
(E);
(2) by striking subparagraphs (B) and (C); and

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(3) by inserting after subparagraph (A) the following:
‘‘(B) runway lighting and airport surface visual and
other navigation aids;
‘‘(C) apparatus, equipment, software, or service for distributing aeronautical and meteorological information to
air traffic control facilities or aircraft;
‘‘(D) communication, navigation, or surveillance equipment for air-to-ground or air-to-air applications;’’;
(4) in subparagraph (E) (as redesignated by paragraph (1)
of this section)—
(A) by striking ‘‘another structure’’ and inserting ‘‘any
structure, equipment,’’; and
(B) by striking the period at the end and inserting ‘‘;
and’’; and
(5) by adding at the end the following:
‘‘(F) buildings, equipment, and systems dedicated to the
national airspace system.’’.
SEC. 206. CLARIFICATION TO ACQUISITION REFORM AUTHORITY.

Section 40110(c) is amended—
(1) by inserting ‘‘and’’ after the semicolon in paragraph (3);
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as paragraph (4).
SEC. 207. ASSISTANCE TO FOREIGN AVIATION AUTHORITIES.

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Section 40113(e) is amended—
(1) in paragraph (1)—
(A) by inserting ‘‘(whether public or private)’’ after ‘‘authorities’’; and
(B) by striking ‘‘safety.’’ and inserting ‘‘safety or efficiency. The Administrator is authorized to participate in,
and submit offers in response to, competitions to provide
these services, and to contract with foreign aviation authorities to provide these services consistent with section
106(l)(6).’’;
(2) in paragraph (2) by adding at the end the following:
‘‘The Administrator is authorized, notwithstanding any other
provision of law or policy, to accept payments for services provided under this subsection in arrears.’’; and
(3) by striking paragraph (3) and inserting the following:
‘‘(3) CREDITING APPROPRIATIONS.—Funds received by the
Administrator pursuant to this section shall—
‘‘(A) be credited to the appropriation current when the
amount is received;
‘‘(B) be merged with and available for the purposes of
such appropriation; and
‘‘(C) remain available until expended.’’.
SEC. 208. NEXT GENERATION AIR TRANSPORTATION SYSTEM JOINT
PLANNING AND DEVELOPMENT OFFICE.
(a) REDESIGNATION OF JPDO DIRECTOR TO ASSOCIATE ADMINISTRATOR.—
(1) ASSOCIATE ADMINISTRATOR FOR NEXT GENERATION AIR
TRANSPORTATION SYSTEM PLANNING, DEVELOPMENT, AND INTERAGENCY COORDINATION.—Section 709(a) of the Vision 100—Cen-

tury of Aviation Reauthorization Act (49 U.S.C. 40101 note; 117
Stat. 2582) is amended—

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31
(A) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively; and
(B) by inserting after paragraph (1) the following:
‘‘(2) The head of the Office shall be the Associate Administrator
for Next Generation Air Transportation System Planning, Development, and Interagency Coordination, who shall be appointed by the
Administrator of the Federal Aviation Administration, with the approval of the Secretary. The Administrator shall appoint the Associate Administrator after consulting with the Chairman of the Next
Generation Senior Policy Committee and providing advanced notice
to the other members of that Committee.’’.
(2) RESPONSIBILITIES.—Section 709(a)(3) of such Act (as redesignated by paragraph (1) of this subsection) is amended—
(A) in subparagraph (G) by striking ‘‘; and’’ and inserting a semicolon;
(B) in subparagraph (H) by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(I) establishing specific quantitative goals for the safety,
capacity, efficiency, performance, and environmental impacts of
each phase of Next Generation Air Transportation System planning and development activities and measuring actual operational experience against those goals, taking into account noise
pollution reduction concerns of affected communities to the extent practicable in establishing the environmental goals;
‘‘(J) working to ensure global interoperability of the Next
Generation Air Transportation System;
‘‘(K) working to ensure the use of weather information and
space weather information in the Next Generation Air Transportation System as soon as possible;
‘‘(L) overseeing, with the Administrator and in consultation
with the Chief NextGen Officer, the selection of products or outcomes of research and development activities that should be
moved to a demonstration phase; and
‘‘(M) maintaining a baseline modeling and simulation environment for testing and evaluating alternative concepts to satisfy Next Generation Air Transportation System enterprise architecture requirements.’’.
(3) COOPERATION WITH OTHER FEDERAL AGENCIES.—Section
709(a)(4) of such Act (as redesignated by paragraph (1) of this
subsection) is amended—
(A) by striking ‘‘(4)’’ and inserting ‘‘(4)(A)’’; and
(B) by adding at the end the following:
‘‘(B) The Secretary of Defense, the Administrator of the National
Aeronautics and Space Administration, the Secretary of Commerce,
the Secretary of Homeland Security, and the head of any other Federal agency from which the Secretary of Transportation requests assistance under subparagraph (A) shall designate a senior official in
the agency to be responsible for—
‘‘(i) carrying out the activities of the agency relating to the
Next Generation Air Transportation System in coordination
with the Office, including the execution of all aspects of the
work of the agency in developing and implementing the integrated work plan described in subsection (b)(5);

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32
‘‘(ii) serving as a liaison for the agency in activities of the
agency relating to the Next Generation Air Transportation System and coordinating with other Federal agencies involved in
activities relating to the System; and
‘‘(iii) ensuring that the agency meets its obligations as set
forth in any memorandum of understanding executed by or on
behalf of the agency relating to the Next Generation Air Transportation System.
‘‘(C) The head of a Federal agency referred to in subparagraph
(B) shall—
‘‘(i) ensure that the responsibilities of the agency relating to
the Next Generation Air Transportation System are clearly communicated to the senior official of the agency designated under
subparagraph (B);
‘‘(ii) ensure that the performance of the senior official in
carrying out the responsibilities of the agency relating to the
Next Generation Air Transportation System is reflected in the
official’s annual performance evaluations and compensation;
‘‘(iii) establish or designate an office within the agency to
carry out its responsibilities under the memorandum of understanding under the supervision of the designated official; and
‘‘(iv) ensure that the designated official has sufficient budgetary authority and staff resources to carry out the agency’s
Next Generation Air Transportation System responsibilities as
set forth in the integrated plan under subsection (b).
‘‘(D) Not later than 6 months after the date of enactment of this
subparagraph, the head of each Federal agency that has responsibility for carrying out any activity under the integrated plan under
subsection (b) shall execute a memorandum of understanding with
the Office obligating that agency to carry out the activity.’’.
(4) COORDINATION WITH OMB.—Section 709(a) of such Act
(117 Stat. 2582) is further amended by adding at the end the
following:
‘‘(6)(A) The Office shall work with the Director of the Office of
Management and Budget to develop a process whereby the Director
will identify projects related to the Next Generation Air Transportation System across the agencies referred to in paragraph (4)(A)
and consider the Next Generation Air Transportation System as a
unified, cross-agency program.
‘‘(B) The Director of the Office of Management and Budget, to
the extent practicable, shall—
‘‘(i) ensure that—
‘‘(I) each Federal agency covered by the plan has sufficient funds requested in the President’s budget, as submitted under section 1105(a) of title 31, United States
Code, for each fiscal year covered by the plan to carry out
its responsibilities under the plan; and
‘‘(II) the development and implementation of the Next
Generation Air Transportation System remains on schedule;
‘‘(ii) include, in the President’s budget, a statement of the
portion of the estimated budget of each Federal agency covered
by the plan that relates to the activities of the agency under the
Next Generation Air Transportation System; and

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33
‘‘(iii) identify and justify as part of the President’s budget
submission any inconsistencies between the plan and amounts
requested in the budget.
‘‘(7) The Associate Administrator for Next Generation Air
Transportation System Planning, Development, and Interagency Coordination shall be a voting member of the Joint Resources Council
of the Federal Aviation Administration.’’.
(b) INTEGRATED PLAN.—Section 709(b) of such Act (117 Stat.
2583) is amended—
(1) in the matter preceding paragraph (1)—
(A) by striking ‘‘meets air’’ and inserting ‘‘meets anticipated future air’’; and
(B) by striking ‘‘beyond those currently included in the
Federal Aviation Administration’s operational evolution
plan’’;
(2) at the end of paragraph (3) by striking ‘‘and’’;
(3) at the end of paragraph (4) by striking the period and
inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(5) a multiagency integrated work plan for the Next Generation Air Transportation System that includes—
‘‘(A) an outline of the activities required to achieve the
end-state architecture, as expressed in the concept of operations and enterprise architecture documents, that identifies each Federal agency or other entity responsible for each
activity in the outline;
‘‘(B) details on a year-by-year basis of specific accomplishments, activities, research requirements, rulemakings,
policy decisions, and other milestones of progress for each
Federal agency or entity conducting activities relating to
the Next Generation Air Transportation System;
‘‘(C) for each element of the Next Generation Air Transportation System, an outline, on a year-by-year basis, of
what is to be accomplished in that year toward meeting the
Next Generation Air Transportation System’s end-state architecture, as expressed in the concept of operations and enterprise architecture documents, as well as identifying each
Federal agency or other entity that will be responsible for
each component of any research, development, or implementation program;
‘‘(D) an estimate of all necessary expenditures on a
year-by-year basis, including a statement of each Federal
agency or entity’s responsibility for costs and available resources, for each stage of development from the basic research stage through the demonstration and implementation phase;
‘‘(E) a clear explanation of how each step in the development of the Next Generation Air Transportation System
will lead to the following step and of the implications of not
successfully completing a step in the time period described
in the integrated work plan;
‘‘(F) a transition plan for the implementation of the
Next Generation Air Transportation System that includes
date-specific milestones for the implementation of new capabilities into the national airspace system;

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‘‘(G) date-specific timetables for meeting the environmental goals identified in subsection (a)(3)(I); and
‘‘(H) a description of potentially significant operational
or workforce changes resulting from deployment of the Next
Generation Air Transportation System.’’.
(c) NEXTGEN IMPLEMENTATION PLAN.—Section 709(d) of such
Act (117 Stat. 2584) is amended to read as follows:
‘‘(d) NEXTGEN IMPLEMENTATION PLAN.—The Administrator
shall develop and publish annually the document known as the
NextGen Implementation Plan, or any successor document, that provides a detailed description of how the agency is implementing the
Next Generation Air Transportation System.’’.
(d) CONTINGENCY PLANNING.—The Associate Administrator for
Next Generation Air Transportation System Planning, Development,
and Interagency Coordination shall, as part of the design of the
System, develop contingency plans for dealing with the degradation
of the System in the event of a natural disaster, major equipment
failure, or act of terrorism.

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SEC. 209. NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY
COMMITTEE.
(a) MEETINGS.—Section 710(a) of the Vision 100—Century of

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

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SEC. 210. IMPROVED MANAGEMENT OF PROPERTY INVENTORY.

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

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SEC. 211. AUTOMATIC DEPENDENT SURVEILLANCE-BROADCAST SERVICES.
(a) REVIEW BY DOT INSPECTOR GENERAL.—
(1) IN GENERAL.—The Inspector General of the Department

of Transportation shall conduct a review concerning the Federal
Aviation Administration’s award and oversight of any contracts
entered into by the Administration to provide ADS–B services
for the national airspace system.
(2) CONTENTS.—The review shall include, at a minimum—
(A) an examination of how the Administration manages program risks;
(B) an assessment of expected benefits attributable to
the deployment of ADS–B services, including the Administration’s plans for implementation of advanced operational
procedures and air-to-air applications, as well as the extent
to which ground radar will be retained;
(C) an assessment of the Administration’s analysis of
specific operational benefits, and benefit/costs analyses of
planned operational benefits conducted by the Administration, for ADS–B In and ADS–B Out avionics equipage for
airspace users;
(D) a determination of whether the Administration has
established sufficient mechanisms to ensure that all design,
acquisition, operation, and maintenance requirements have
been met by the contractor;
(E) an assessment of whether the Administration and
any contractors are meeting cost, schedule, and performance milestones, as measured against the original baseline
of the Administration’s program for providing ADS–B services;
(F) an assessment of how security issues are being addressed in the overall design and implementation of the
ADS–B system;
(G) identification of any potential operational or workforce changes resulting from deployment of ADS–B; and
(H) any other matters or aspects relating to contract
implementation and oversight that the Inspector General
determines merit attention.
(3) REPORTS TO CONGRESS.—The Inspector General shall
submit, periodically (and on at least an annual basis), to the
Committee on Transportation and Infrastructure of the House
of Representatives and the Committee on Commerce, Science,

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36
and Transportation of the Senate a report on the results of the
review conducted under this subsection.
(b) RULEMAKING.—
(1) ADS–B IN.—Not later than 1 year after the date of enactment of this Act, the Administrator of the Federal Aviation
Administration shall initiate a rulemaking proceeding to issue
guidelines and regulations relating to ADS–B In technology
that—
(A) identify the ADS–B In technology that will be required under NextGen;
(B) subject to paragraph (2), require all aircraft operating in capacity constrained airspace, at capacity constrained airports, or in any other airspace deemed appropriate by the Administrator to be equipped with ADS–B In
technology by 2020; and
(C) identify—
(i) the type of avionics required of aircraft for all
classes of airspace;
(ii) the expected costs associated with the avionics;
and
(iii) the expected uses and benefits of the avionics.
(2) READINESS VERIFICATION.—Before the Administrator
completes an ADS–B In equipage rulemaking proceeding or
issues an interim or final rule pursuant to paragraph (1), the
Chief NextGen Officer shall verify that—
(A) the necessary ground infrastructure is installed and
functioning properly;
(B) certification standards have been approved; and
(C) appropriate operational platforms interface safely
and efficiently.
(c) USE OF ADS–B TECHNOLOGY.—
(1) PLANS.—Not later than 18 months after the date of enactment of this Act, the Administrator shall develop, in consultation with appropriate employee and industry groups, a
plan for the use of ADS–B technology for surveillance and active air traffic control.
(2) CONTENTS.—The plan shall—
(A) include provisions to test the use of ADS–B technology for surveillance and active air traffic control in specific regions of the United States with the most congested
airspace;
(B) identify the equipment required at air traffic control facilities and the training required for air traffic controllers;
(C) identify procedures, to be developed in consultation
with appropriate employee and industry groups, to conduct
air traffic management in mixed equipage environments;
and
(D) establish a policy in test regions referred to in subparagraph (A), in consultation with appropriate employee
and industry groups, to provide incentives for equipage
with ADS–B technology, including giving priority to aircraft equipped with such technology before the 2020 equipage deadline.

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SEC. 212. EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR
NEXTGEN.
(a) REVIEW.—The Administrator of the Federal Aviation Ad-

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

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SEC. 213. ACCELERATION OF NEXTGEN TECHNOLOGIES.
(a) OPERATIONAL EVOLUTION PARTNERSHIP (OEP) AIRPORT
PROCEDURES.—
(1) OEP AIRPORTS REPORT.—Not later than 6 months after

the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall publish a report, after consultation with representatives of appropriate Administration
employee groups, airport operators, air carriers, general aviation representatives, aircraft and avionics manufacturers, and
third parties that have received letters of qualification from the
Administration to design and validate required navigation performance flight paths for public use (in this section referred to
as ‘‘qualified third parties’’) that includes the following:
(A) RNP/RNAV OPERATIONS FOR OEP AIRPORTS.—The
required navigation performance and area navigation operations, including the procedures to be developed, certified,
and published and the air traffic control operational
changes, to maximize the fuel efficiency and airspace capacity of NextGen commercial operations at each of the 35
operational evolution partnership airports identified by the
Administration and any medium or small hub airport located within the same metroplex area considered appropriate by the Administrator. The Administrator shall, to
the maximum extent practicable, avoid overlays of existing
flight procedures, but if unavoidable, the Administrator
shall clearly identify each required navigation performance
and area navigation procedure that is an overlay of an ex-

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38
isting instrument flight procedure and the reason why such
an overlay was used.
(B) COORDINATION AND IMPLEMENTATION ACTIVITIES
FOR OEP AIRPORTS.—A description of the activities and
operational changes and approvals required to coordinate
and utilize the procedures at OEP airports.
(C) IMPLEMENTATION PLAN FOR OEP AIRPORTS.—A plan
for implementing the procedures for OEP airports under
subparagraph (A) that establishes—
(i) clearly defined budget, schedule, project organization, and leadership requirements;
(ii) specific implementation and transition steps;
(iii) baseline and performance metrics for—
(I) measuring the Administration’s progress in
implementing the plan, including the percentage
utilization of required navigation performance in
the national airspace system; and
(II) achieving measurable fuel burn and carbon dioxide emissions reductions compared to current performance;
(iv) expedited environmental review procedures
and processes for timely environmental approval of
area navigation and required navigation performance
that offer significant efficiency improvements as determined by baseline and performance metrics under
clause (iii);
(v) coordination and communication mechanisms
with qualified third parties, if applicable;
(vi) plans to address human factors, training, and
other issues for air traffic controllers surrounding the
adoption of RNP procedures in the en route and terminal environments, including in a mixed operational
environment; and
(vii) a lifecycle management strategy for RNP procedures to be developed by qualified third parties, if
applicable.
(D) ADDITIONAL PROCEDURES FOR OEP AIRPORTS.—A
process for the identification, certification, and publication
of additional required navigation performance and area
navigation procedures that may provide operational benefits at OEP airports, and any medium or small hub airport
located within the same metroplex area as the OEP airport,
in the future.
(2) IMPLEMENTATION SCHEDULE FOR OEP AIRPORTS.—The
Administrator shall certify, publish, and implement—
(A) not later than 18 months after the date of enactment of this Act, 30 percent of the required procedures at
OEP airports;
(B) not later than 36 months after the date of enactment of this Act, 60 percent of the required procedures at
OEP airports; and
(C) before June 30, 2015, 100 percent of the required
procedures at OEP airports.
(b) NON-OEP AIRPORTS.—

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(1) NON-OEP AIRPORTS REPORT.—Not later than 6 months
after the date of enactment of this Act, the Administrator of the
Federal Aviation Administration shall publish a report, after
consultation with representatives of appropriate Administration
employee groups, airport operators, air carriers, general aviation representatives, aircraft and avionics manufacturers, and
third parties that have received letters of qualification from the
Administration to design and validate required navigation performance flight paths for public use (in this section referred to
as ‘‘qualified third parties’’) that includes the following:
(A) RNP OPERATIONS FOR NON-OEP AIRPORTS.—A list of
required navigation performance procedures (as defined in
FAA order 8260.52(d)) to be developed, certified, and published, and the air traffic control operational changes, to
maximize the fuel efficiency and airspace capacity of
NextGen commercial operations at 35 non-OEP small, medium, and large hub airports other than those referred to
in subsection (a)(1). The Administrator shall choose such
non-OEP airports considered appropriate by the Administrator to produce maximum operational benefits, including
improved fuel efficiency and emissions reductions that do
not have public RNP procedures that produce such benefits
on the date of enactment of this Act. The Administrator
shall, to the maximum extent practicable, avoid overlays of
existing flight procedures, but if unavoidable, the Administrator shall clearly identify each required navigation performance procedure that is an overlay of an existing instrument flight procedure and the reason why such an overlay
was used.
(B) COORDINATION AND IMPLEMENTATION ACTIVITIES
FOR NON-OEP AIRPORTS.—A description of the activities and
operational changes and approvals required to coordinate
and to utilize the procedures required by subparagraph (A)
at each of the airports described in such subparagraph.
(C) IMPLEMENTATION PLAN FOR NON-OEP AIRPORTS.—A
plan for implementation of the procedures required by subparagraph (A) that establishes—
(i) clearly defined budget, schedule, project organization, and leadership requirements;
(ii) specific implementation and transition steps;
(iii) coordination and communications mechanisms with qualified third parties;
(iv) plans to address human factors, training, and
other issues for air traffic controllers surrounding the
adoption of RNP procedures in the en route and terminal environments, including in a mixed operational
environment;
(v) baseline and performance metrics for—
(I) measuring the Administration’s progress in
implementing the plan, including the percentage
utilization of required navigation performance in
the national airspace system; and
(II) achieving measurable fuel burn and carbon dioxide emissions reduction compared to current performance;

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(vi) expedited environmental review procedures
and processes for timely environmental approval of
area navigation and required navigation performance
that offer significant efficiency improvements as determined by baseline and performance metrics established
under clause (v);
(vii) a description of the software and database information, such as a current version of the Noise Integrated Routing System or the Integrated Noise Model
that the Administration will need to make available to
qualified third parties to enable those third parties to
design procedures that will meet the broad range of requirements of the Administration; and
(viii) lifecycle management strategy for RNP procedures to be developed by qualified third parties, if applicable.
(D) ADDITIONAL PROCEDURES FOR NON-OEP AIRPORTS.—A process for the identification, certification, and
publication of additional required navigation performance
procedures that may provide operational benefits at nonOEP airports in the future.
(2) IMPLEMENTATION SCHEDULE FOR NON-OEP AIRPORTS.—
The Administrator shall certify, publish, and implement—
(A) not later than 18 months after the date of enactment of this Act, 25 percent of the required procedures for
non-OEP airports;
(B) not later than 36 months after the date of enactment of this Act, 50 percent of the required procedures for
non-OEP airports; and
(C) before June 30, 2016, 100 percent of the required
procedures for non-OEP airports.
(c) COORDINATED AND EXPEDITED REVIEW.—
(1) IN GENERAL.—Navigation performance and area navigation procedures developed, certified, published, or implemented under this section shall be presumed to be covered by
a categorical exclusion (as defined in section 1508.4 of title 40,
Code of Federal Regulations) under chapter 3 of FAA Order
1050.1E unless the Administrator determines that extraordinary circumstances exist with respect to the procedure.
(2) NEXTGEN PROCEDURES.—Any navigation performance or
other performance based navigation procedure developed, certified, published, or implemented that, in the determination of
the Administrator, would result in measurable reductions in
fuel consumption, carbon dioxide emissions, and noise, on a per
flight basis, as compared to aircraft operations that follow existing instrument flight rules procedures in the same airspace,
shall be presumed to have no significant affect on the quality
of the human environment and the Administrator shall issue
and file a categorical exclusion for the new procedure.
(d) DEPLOYMENT PLAN FOR NATIONWIDE DATA COMMUNICATIONS SYSTEM.—Not later than 1 year after the date of enactment
of this Act, the Administrator shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Rep-

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resentatives a plan for implementation of a nationwide data communications system. The plan shall include—
(1) clearly defined budget, schedule, project organization,
and leadership requirements;
(2) specific implementation and transition steps; and
(3) baseline and performance metrics for measuring the Administration’s progress in implementing the plan.
(e) IMPROVED PERFORMANCE STANDARDS.—
(1) ASSESSMENT OF WORK BEING PERFORMED UNDER
NEXTGEN IMPLEMENTATION PLAN.—The Administrator shall
clearly outline in the NextGen Implementation Plan document
of the Administration the work being performed under the plan
to determine—
(A) whether utilization of ADS–B, RNP, and other technologies as part of NextGen implementation will display
the position of aircraft more accurately and frequently to
enable a more efficient use of existing airspace and result
in reduced consumption of aviation fuel and aircraft engine
emissions; and
(B) the feasibility of reducing aircraft separation standards in a safe manner as a result of the implementation of
such technologies.
(2) AIRCRAFT SEPARATION STANDARDS.—If the Administrator determines that the standards referred to in paragraph
(1)(B) can be reduced safely, the Administrator shall include in
the NextGen Implementation Plan a timetable for implementation of such reduced standards.
(f) THIRD-PARTY USAGE.—The Administration shall establish a
program under which the Administrator is authorized to use qualified third parties in the development, testing, and maintenance of
flight procedures.

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SEC. 214. PERFORMANCE METRICS.
(a) IN GENERAL.—Not later than

180 days after the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall establish and begin tracking national airspace
system performance metrics, including, at a minimum, metrics with
respect to—
(1) actual arrival and departure rates per hour measured
against the currently published aircraft arrival rate and aircraft departure rate for the 35 operational evolution partnership
airports;
(2) average gate-to-gate times;
(3) fuel burned between key city pairs;
(4) operations using the advanced navigation procedures,
including performance based navigation procedures;
(5) the average distance flown between key city pairs;
(6) the time between pushing back from the gate and taking
off;
(7) continuous climb or descent;
(8) average gate arrival delay for all arrivals;
(9) flown versus filed flight times for key city pairs;
(10) implementation of NextGen Implementation Plan, or
any successor document, capabilities designed to reduce emissions and fuel consumption;

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(11) the Administration’s unit cost of providing air traffic
control services; and
(12) runway safety, including runway incursions, operational errors, and loss of standard separation events.
(b) BASELINES.—The Administrator, in consultation with aviation industry stakeholders, shall identify baselines for each of the
metrics established under subsection (a) and appropriate methods to
measure deviations from the baselines.
(c) PUBLICATION.—The Administrator shall make data obtained
under subsection (a) available to the public in a searchable, sortable, and downloadable format through the Web site of the Administration and other appropriate media.
(d) REPORT.—Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to the Committee
on Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives a report that contains—
(1) a description of the metrics that will be used to measure
the Administration’s progress in implementing NextGen capabilities and operational results;
(2) information on any additional metrics developed; and
(3) a process for holding the Administration accountable for
meeting or exceeding the metrics baselines identified in subsection (b).
SEC. 215. CERTIFICATION STANDARDS AND RESOURCES.
(a) PROCESS FOR CERTIFICATION.—Not later than

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180 days
after the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall develop a plan to accelerate and
streamline the process for certification of NextGen technologies, including—
(1) establishment of updated project plans and timelines;
(2) identification of the specific activities needed to certify
NextGen technologies, including the establishment of NextGen
technical requirements for the manufacture of equipage, installation of equipage, airline operational procedures, pilot training
standards, air traffic control procedures, and air traffic controller training;
(3) identification of staffing requirements for the Air Certification Service and the Flight Standards Service, taking into
consideration the leveraging of assistance from third parties
and designees;
(4) establishment of a program under which the Administration will use third parties in the certification process; and
(5) establishment of performance metrics to measure the
Administration’s progress.
(b) CERTIFICATION INTEGRITY.—The Administrator shall ensure
that equipment, systems, or services used in the national airspace
system meet appropriate certification requirements regardless of
whether the equipment, system, or service is publically or privately
owned.
SEC. 216. SURFACE SYSTEMS ACCELERATION.
(a) IN GENERAL.—The Chief Operating Officer

of the Air Traffic

Organization shall—

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(1) evaluate the Airport Surface Detection EquipmentModel X program for its potential contribution to implementation of the NextGen initiative;
(2) evaluate airport surveillance technologies and associated collaborative surface management software for potential
contributions to implementation of NextGen surface management;
(3) accelerate implementation of the program referred to in
paragraph (1); and
(4) carry out such additional duties as the Administrator of
the Federal Aviation Administration may require.
(b) EXPEDITED CERTIFICATION AND UTILIZATION.—The Administrator shall—
(1) consider options for expediting the certification of
Ground-Based Augmentation System technology; and
(2) develop a plan to utilize such a system at the 35 operational evolution partnership airports by December 31, 2012.
SEC. 217. INCLUSION OF STAKEHOLDERS IN AIR TRAFFIC CONTROL
MODERNIZATION PROJECTS.
(a) PROCESS FOR EMPLOYEE INCLUSION.—Notwithstanding any

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

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SEC. 218. AIRSPACE REDESIGN.
(a) FINDINGS.—Congress finds

the following:
(1) The airspace redesign efforts of the Federal Aviation
Administration will play a critical near-term role in enhancing
capacity, reducing delays, transitioning to more flexible routing,
and ultimately saving money in fuel costs for airlines and airspace users.

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(2) The critical importance of airspace redesign efforts is
underscored by the fact that they are highlighted in strategic
plans of the Administration, including Flight Plan 2009–2013
and the NextGen Implementation Plan.
(3) Funding cuts have led to delays and deferrals of critical
capacity enhancing airspace redesign efforts.
(4) New runways planned for the period of fiscal years 2011
and 2012 will not provide estimated capacity benefits without
additional funds.
(b) NOISE IMPACTS OF NEW YORK/NEW JERSEY/PHILADELPHIA
METROPOLITAN AREA AIRSPACE REDESIGN.—
(1) MONITORING.—The Administrator of the Federal Aviation Administration, in conjunction with the Port Authority of
New York and New Jersey and the Philadelphia International
Airport, shall monitor the noise impacts of the New York/New
Jersey/Philadelphia Metropolitan Area Airspace Redesign.
(2) REPORT.—Not later than 1 year following the first day
of completion of the New York/New Jersey/Philadelphia Metropolitan Area Airspace Redesign, the Administrator shall submit
to Congress a report on the findings of the Administrator with
respect to monitoring conducted under paragraph (1).
SEC. 219. STUDY ON FEASIBILITY OF DEVELOPMENT OF A PUBLIC
INTERNET WEB-BASED RESOURCE ON LOCATIONS OF POTENTIAL AVIATION OBSTRUCTIONS.
(a) STUDY.—The Administrator of the Federal Aviation Admin-

istration shall carry out a study on the feasibility of developing a
publicly searchable, Internet Web-based resource that provides information regarding the height and latitudinal and longitudinal locations of guy-wire and free-standing tower obstructions.
(b) CONSIDERATIONS.—In conducting the study, the Administrator shall consult with affected industries and appropriate Federal agencies.
(c) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Administrator shall submit a report to the appropriate committees of Congress on the results of the study.
SEC. 220. NEXTGEN RESEARCH AND DEVELOPMENT CENTER OF EXCELLENCE.
(a) IN GENERAL.—The Administrator of the Federal Aviation

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Administration may enter into an agreement, on a competitive
basis, to assist in the establishment of a center of excellence for the
research and development of NextGen technologies.
(b) FUNCTIONS.—The Administrator shall ensure that the center
established under subsection (a)—
(1) leverages resources and partnerships, including appropriate programs of the Administration, to enhance the research
and development of NextGen technologies by academia and industry; and
(2) provides educational, technical, and analytical assistance to the Administration and other Federal departments and
agencies with responsibilities to research and develop NextGen
technologies.
SEC. 221. PUBLIC-PRIVATE PARTNERSHIPS.
(a) IN GENERAL.—The Secretary may

establish an avionics equipage incentive program for the purpose of equipping general avia-

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tion and commercial aircraft with communications, surveillance,
navigation, and other avionics equipment as determined by the Secretary to be in the interest of achieving NextGen capabilities for
such aircraft.
(b) NEXTGEN PUBLIC-PRIVATE PARTNERSHIPS.—The incentive
program established under subsection (a) shall, at a minimum—
(1) be based on public-private partnership principles; and
(2) leverage and maximize the use of private sector capital.
(c) FINANCIAL INSTRUMENTS.—Subject to the availability of appropriated funds, the Secretary may use financial instruments to facilitate public-private financing for the equipage of general aviation
and commercial aircraft registered under section 44103 of title 49,
United States Code. To the extent appropriations are not made
available, the Secretary may establish the program, provided the
costs are covered by the fees and premiums authorized by subsection
(d)(2). For purposes of this section, the term ‘‘financial instruments’’
means loan guarantees and other credit assistance designed to leverage and maximize private sector capital.
(d) PROTECTION OF THE TAXPAYER.—
(1) LIMITATION ON PRINCIPAL.—The amount of any guarantee under this program shall be limited to 90 percent of the
principal amount of the underlying loan.
(2) COLLATERAL, FEES, AND PREMIUMS.—The Secretary
shall require applicants for the incentive program to post collateral and pay such fees and premiums if feasible, as determined
by the Secretary, to offset costs to the Government of potential
defaults, and agree to performance measures that the Secretary
considers necessary and in the best interest of implementing the
NextGen program.
(3) USE OF FUNDS.—Applications for this program shall be
limited to equipment that is installed on general aviation or
commercial aircraft and is necessary for communications, surveillance, navigation, or other purposes determined by the Secretary to be in the interests of achieving NextGen capabilities
for commercial and general aviation.
(e) TERMINATION OF AUTHORITY.—The authority of the Secretary to issue such financial instruments under this section shall
terminate 5 years after the date of the establishment of the incentive
program.

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SEC. 222. OPERATIONAL INCENTIVES.
(a) IN GENERAL.—The Administrator

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

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(2) the date on which aircraft are required to be equipped
with ADS–B technology pursuant to the rulemaking under section 211(b).
SEC. 223. EDUCATIONAL REQUIREMENTS.

The Administrator of the Federal Aviation Administration shall
make payments to the Department of Defense for the education of
dependent children of those Administration employees in Puerto
Rico and Guam as they are subject to transfer by policy and practice and meet the eligibility requirements of section 2164(c) of title
10, United States Code.
SEC. 224. AIR TRAFFIC CONTROLLER STAFFING INITIATIVES AND
ANALYSIS.

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

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SEC. 225. REPORTS ON STATUS OF GREENER SKIES PROJECT.
(a) INITIAL REPORT.—Not later than 180 days after the

date of
the enactment of this Act, the Administrator of the Federal Aviation
Administration shall submit to Congress a report on the strategy of
the Administrator for implementing, on an accelerated basis, the
NextGen operational capabilities produced by the Greener Skies
project, as recommended in the final report of the RTCA NextGen
Mid-Term Implementation Task Force that was issued on September 9, 2009.
(b) SUBSEQUENT REPORTS.—
(1) IN GENERAL.—Not later than 180 days after the Administrator submits to Congress the report required by subsection
(a) and annually thereafter until the pilot program terminates,

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the Administrator shall submit to the Committee on Commerce,
Science, and Transportation of the Senate and to the Committee
on Transportation and Infrastructure of the House of Representatives a report on the progress of the Administrator in carrying
out the strategy described in the report submitted under subsection (a).
(2) CONTENTS.—Each report submitted under paragraph
(1) shall include the following:
(A) A timeline for full implementation of the strategy
described in the report submitted under subsection (a).
(B) A description of the progress made in carrying out
such strategy.
(C) A description of the challenges, if any, encountered
by the Administrator in carrying out such strategy.
TITLE III—SAFETY
Subtitle A—General Provisions
SEC. 301. JUDICIAL REVIEW OF DENIAL OF AIRMAN CERTIFICATES.
(a) JUDICIAL REVIEW OF NTSB DECISIONS.—Section 44703(d)

is
amended by adding at the end the following:
‘‘(3) A person who is substantially affected by an order of the
Board under this subsection, or the Administrator if the Administrator decides that an order of the Board will have a significant adverse impact on carrying out this subtitle, may seek judicial review
of the order under section 46110. The Administrator shall be made
a party to the judicial review proceedings. The findings of fact of
the Board in any such case are conclusive if supported by substantial evidence.’’.
(b) CONFORMING AMENDMENT.—Section 1153(c) is amended by
striking ‘‘section 44709 or’’ and inserting ‘‘section 44703(d), 44709,
or’’.

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SEC. 302. RELEASE OF DATA RELATING TO ABANDONED TYPE CERTIFICATES AND SUPPLEMENTAL TYPE CERTIFICATES.

Section 44704(a) is amended by adding at the end the following:
‘‘(5) RELEASE OF DATA.—
‘‘(A) IN GENERAL.—Notwithstanding any other provision of law, the Administrator may make available upon
request, to a person seeking to maintain the airworthiness
or develop product improvements of an aircraft, engine,
propeller, or appliance, engineering data in the possession
of the Administration relating to a type certificate or a supplemental type certificate for such aircraft, engine, propeller, or appliance, without the consent of the owner of
record, if the Administrator determines that—
‘‘(i) the certificate containing the requested data
has been inactive for 3 or more years, except that the
Administrator may reduce this time if required to address an unsafe condition associated with the product;
‘‘(ii) after using due diligence, the Administrator is
unable to find the owner of record, or the owner of
record’s heir, of the type certificate or supplemental
type certificate; and

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‘‘(iii) making such data available will enhance
aviation safety.
‘‘(B) ENGINEERING DATA DEFINED.—In this section, the
term ‘engineering data’ as used with respect to an aircraft,
engine, propeller, or appliance means type design drawing
and specifications for the entire aircraft, engine, propeller,
or appliance or change to the aircraft, engine, propeller, or
appliance, including the original design data, and any associated supplier data for individual parts or components
approved as part of the particular certificate for the aircraft, engine, propeller, or appliance.
‘‘(C) REQUIREMENT TO MAINTAIN DATA.—The Administrator shall maintain engineering data in the possession of
the Administration relating to a type certificate or a supplemental type certificate that has been inactive for 3 or more
years.’’.

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SEC. 303. DESIGN AND PRODUCTION ORGANIZATION CERTIFICATES.
(a) IN GENERAL.—Section 44704(e) is amended to read as fol-

lows:
‘‘(e) DESIGN AND PRODUCTION ORGANIZATION CERTIFICATES.—
‘‘(1) ISSUANCE.—Beginning January 1, 2013, the Administrator may issue a certificate to a design organization, production organization, or design and production organization to authorize the organization to certify compliance of aircraft, aircraft engines, propellers, and appliances with the requirements
and minimum standards prescribed under section 44701(a). An
organization holding a certificate issued under this subsection
shall be known as a certified design and production organization (in this subsection referred to as a ‘CDPO’).
‘‘(2) APPLICATIONS.—On receiving an application for a
CDPO certificate, the Administrator shall examine and rate the
organization submitting the application, in accordance with
regulations to be prescribed by the Administrator, to determine
whether the organization has adequate engineering, design, and
production capabilities, standards, and safeguards to make certifications of compliance as described in paragraph (1).
‘‘(3) ISSUANCE OF CERTIFICATES BASED ON CDPO FINDINGS.—The Administrator may rely on certifications of compliance by a CDPO when making determinations under this section.
‘‘(4) PUBLIC SAFETY.—The Administrator shall include in a
CDPO certificate terms required in the interest of safety.
‘‘(5) NO EFFECT ON POWER OF REVOCATION.—Nothing in
this subsection affects the authority of the Secretary of Transportation to revoke a certificate.’’.
(b) APPLICABILITY.—Before January 1, 2013, the Administrator
of the Federal Aviation Administration may continue to issue certificates under section 44704(e) of title 49, United States Code, as in
effect on the day before the date of enactment of this Act.
(c) CLERICAL AMENDMENTS.—Chapter 447 is amended—
(1) in the heading for section 44704 by striking ‘‘and design organization certificates’’ and inserting ‘‘, and design
and production organization certificates’’; and
(2) in the analysis for such chapter by striking the item relating to section 44704 and inserting the following:

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‘‘44704. Type certificates, production certificates, airworthiness certificates, and design and production organization certificates.’’.
SEC. 304. CABIN CREW COMMUNICATION.
(a) IN GENERAL.—Section 44728 is amended—

(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following:
‘‘(f) MINIMUM LANGUAGE SKILLS.—
‘‘(1) IN GENERAL.—No person may serve as a flight attendant aboard an aircraft of an air carrier, unless that person has
demonstrated to an individual qualified to determine proficiency the ability to read, speak, and write English well
enough to—
‘‘(A) read material written in English and comprehend
the information;
‘‘(B) speak and understand English sufficiently to provide direction to, and understand and answer questions
from, English-speaking individuals;
‘‘(C) write incident reports and statements and log entries and statements; and
‘‘(D) carry out written and oral instructions regarding
the proper performance of their duties.
‘‘(2) FOREIGN FLIGHTS.—The requirements of paragraph (1)
do not apply to a flight attendant serving solely between points
outside the United States.’’.
(b) FACILITATION.—The Administrator of the Federal Aviation
Administration shall work with air carriers to facilitate compliance
with the requirements of section 44728(f) of title 49, United States
Code (as amended by this section).
SEC. 305. LINE CHECK EVALUATIONS.

Section 44729(h) is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
SEC. 306. SAFETY OF AIR AMBULANCE OPERATIONS.
(a) IN GENERAL.—Chapter 447 is amended

by adding at the

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end the following:
‘‘§ 44730. Helicopter air ambulance operations
‘‘(a) COMPLIANCE REGULATIONS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), not
later than 180 days after the date of enactment of this section,
a part 135 certificate holder providing air ambulance services
shall comply, whenever medical personnel are onboard the aircraft, with regulations pertaining to weather minimums and
flight and duty time under part 135.
‘‘(2) EXCEPTION.—If a certificate holder described in paragraph (1) is operating, or carrying out training, under instrument flight rules, the weather reporting requirement at the destination shall not apply if authorized by the Administrator of
the Federal Aviation Administration.
‘‘(b) FINAL RULE.—Not later than June 1, 2012, the Administrator shall issue a final rule, with respect to the notice of proposed
rulemaking published in the Federal Register on October 12, 2010
(75 Fed. Reg. 62640), to improve the safety of flight crewmembers,

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50
medical personnel, and passengers onboard helicopters providing
air ambulance services under part 135.
‘‘(c) MATTERS TO BE ADDRESSED.—In conducting the rulemaking proceeding under subsection (b), the Administrator shall
address the following:
‘‘(1) Flight request and dispatch procedures, including performance-based flight dispatch procedures.
‘‘(2) Pilot training standards, including establishment of
training standards in—
‘‘(A) preventing controlled flight into terrain; and
‘‘(B) recovery from inadvertent flight into instrument
meteorological conditions.
‘‘(3) Safety-enhancing technology and equipment, including—
‘‘(A) helicopter terrain awareness and warning systems;
‘‘(B) radar altimeters; and
‘‘(C) devices that perform the function of flight data recorders and cockpit voice recorders, to the extent feasible.
‘‘(4) Such other matters as the Administrator considers appropriate.
‘‘(d) MINIMUM REQUIREMENTS.—In issuing a final rule under
subsection (b), the Administrator, at a minimum, shall provide for
the following:
‘‘(1) FLIGHT RISK EVALUATION PROGRAM.—The Administrator shall ensure that a part 135 certificate holder providing
helicopter air ambulance services—
‘‘(A) establishes a flight risk evaluation program, based
on FAA Notice 8000.301 issued by the Administration on
August 1, 2005, including any updates thereto;
‘‘(B) as part of the flight risk evaluation program, develops a checklist for use by pilots in determining whether
a flight request should be accepted; and
‘‘(C) requires the pilots of the certificate holder to use
the checklist.
‘‘(2) OPERATIONAL CONTROL CENTER.—The Administrator
shall ensure that a part 135 certificate holder providing helicopter air ambulance services using 10 or more helicopters has
an operational control center that meets such requirements as
the Administrator may prescribe.
‘‘(e) SUBSEQUENT RULEMAKING.—
‘‘(1) IN GENERAL.—Upon completion of the rulemaking required under subsection (b), the Administrator shall conduct a
follow-on rulemaking to address the following:
‘‘(A) Pilot training standards, including—
‘‘(i) mandatory training requirements, including a
minimum time for completing the training requirements;
‘‘(ii) training subject areas, such as communications procedures and appropriate technology use; and
‘‘(iii) establishment of training standards in—
‘‘(I) crew resource management;
‘‘(II) flight risk evaluation;
‘‘(III) operational control of the pilot in command; and

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‘‘(IV) use of flight simulation training devices
and line-oriented flight training.
‘‘(B) Use of safety equipment that should be worn or
used by flight crewmembers and medical personnel on a
flight, including the possible use of shoulder harnesses, helmets, seatbelts, and fire resistant clothing to enhance crash
survivability.
‘‘(2) DEADLINES.—Not later than 180 days after the date of
issuance of a final rule under subsection (b), the Administrator
shall initiate the rulemaking under this subsection.
‘‘(3) LIMITATION ON CONSTRUCTION.—Nothing in this subsection shall be construed to require the Administrator to propose or finalize any rule that would derogate or supersede the
rule required to be finalized under subsection (b).
‘‘(f) DEFINITIONS.—In this section, the following definitions
apply:
‘‘(1) PART 135.—The term ‘part 135’ means part 135 of title
14, Code of Federal Regulations.
‘‘(2) PART 135 CERTIFICATE HOLDER.—The term ‘part 135
certificate holder’ means a person holding an operating certificate issued under part 119 of title 14, Code of Federal Regulations, that is authorized to conduct civil helicopter air ambulance operations under part 135.
‘‘§ 44731. Collection of data on helicopter air ambulance operations
‘‘(a) IN GENERAL.—The Administrator of the Federal Aviation
Administration shall require a part 135 certificate holder providing
helicopter air ambulance services to submit to the Administrator,
not later than 1 year after the date of enactment of this section, and
annually thereafter, a report containing, at a minimum, the following data:
‘‘(1) The number of helicopters that the certificate holder
uses to provide helicopter air ambulance services and the base
locations of the helicopters.
‘‘(2) The number of flights and hours flown, by registration
number, during which helicopters operated by the certificate
holder were providing helicopter air ambulance services.
‘‘(3) The number of flight requests for a helicopter providing
air ambulance services that were accepted or declined by the
certificate holder and the type of each such flight request (such
as scene response, interfacility transport, organ transport, or
ferry or repositioning flight).
‘‘(4) The number of accidents, if any, involving helicopters
operated by the certificate holder while providing air ambulance services and a description of the accidents.
‘‘(5) The number of flights and hours flown under instrument flight rules by helicopters operated by the certificate holder while providing air ambulance services.
‘‘(6) The time of day of each flight flown by helicopters operated by the certificate holder while providing air ambulance
services.
‘‘(7) The number of incidents, if any, in which a helicopter
was not directly dispatched and arrived to transport patients
but was not utilized for patient transport.

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‘‘(b) REPORTING PERIOD.—Data contained in a report submitted
by a part 135 certificate holder under subsection (a) shall relate to
such reporting period as the Administrator determines appropriate.
‘‘(c) DATABASE.—Not later than 180 days after the date of enactment of this section, the Administrator shall develop a method to
collect and store the data collected under subsection (a), including
a method to protect the confidentiality of any trade secret or proprietary information provided in response to this section.
‘‘(d) REPORT TO CONGRESS.—Not later than 2 years after the
date of enactment of this section, and annually thereafter, the Administrator shall submit to the Committee on Transportation and
Infrastructure of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate a report containing a summary of the data collected under subsection (a).
‘‘(e) DEFINITIONS.—In this section, the terms ‘part 135’ and ‘part
135 certificate holder’ have the meanings given such terms in section 44730.’’.
(b) AUTHORIZED EXPENDITURES.—Section 106(k)(2)(C) (as redesignated by this Act) is amended by inserting before the period the
following: ‘‘and the development and maintenance of helicopter approach procedures’’.
(c) CLERICAL AMENDMENT.—The analysis for chapter 447 is
amended by adding at the end the following:
‘‘44730. Helicopter air ambulance operations.
‘‘44731. Collection of data on helicopter air ambulance operations.’’.
SEC. 307. PROHIBITION ON PERSONAL USE OF ELECTRONIC DEVICES
ON FLIGHT DECK.
(a) IN GENERAL.—Chapter 447 (as amended by this Act) is fur-

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ther amended by adding at the end the following:
‘‘§ 44732. Prohibition on personal use of electronic devices on
flight deck
‘‘(a) IN GENERAL.—It is unlawful for a flight crewmember of an
aircraft used to provide air transportation under part 121 of title
14, Code of Federal Regulations, to use a personal wireless communications device or laptop computer while at the flight crewmember’s duty station on the flight deck of such an aircraft while
the aircraft is being operated.
‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply to the use of
a personal wireless communications device or laptop computer for
a purpose directly related to operation of the aircraft, or for emergency, safety-related, or employment-related communications, in accordance with procedures established by the air carrier and the Administrator of the Federal Aviation Administration.
‘‘(c) ENFORCEMENT.—In addition to the penalties provided
under section 46301 applicable to any violation of this section, the
Administrator of the Federal Aviation Administration may enforce
compliance with this section under section 44709 by amending,
modifying, suspending, or revoking a certificate under this chapter.
‘‘(d) PERSONAL WIRELESS COMMUNICATIONS DEVICE DEFINED.—
In this section, the term ‘personal wireless communications device’
means a device through which personal wireless services (as defined
in section 332(c)(7)(C)(i) of the Communications Act of 1934 (47
U.S.C. 332(c)(7)(C)(i))) are transmitted.’’.
(b) PENALTY.—Section 44711(a) is amended—

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(1) by striking ‘‘or’’ after the semicolon in paragraph (8);
(2) by striking ‘‘title.’’ in paragraph (9) and inserting ‘‘title;
or’’; and
(3) by adding at the end the following:
‘‘(10) violate section 44732 or any regulation issued thereunder.’’.
(c) CONFORMING AMENDMENT.—The analysis for chapter 447
(as amended by this Act) is further amended by adding at the end
the following:
‘‘44732. Prohibition on personal use of electronic devices on flight deck.’’.

(d) REGULATIONS.—Not later than 90 days after the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall initiate a rulemaking procedure for regulations to
carry out section 44732 of title 49, United States Code (as added by
this section), and shall issue a final rule thereunder not later than
2 years after the date of enactment of this Act.
(e) STUDY.—
(1) IN GENERAL.—The Administrator of the Federal Aviation Administration shall review relevant air carrier data and
carry out a study—
(A) to identify common sources of distraction for the
flight crewmembers on the flight deck of a commercial aircraft; and
(B) to determine the safety impacts of such distractions.
(2) REPORT TO CONGRESS.—Not later than 1 year after the
date of enactment of this Act, the Administrator shall submit
to the Committee on Commerce, Science, and Transportation of
the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report that contains—
(A) the findings of the study conducted under paragraph (1); and
(B) recommendations regarding how to reduce distractions for flight crewmembers on the flight deck of a commercial aircraft.
SEC. 308. INSPECTION OF REPAIR STATIONS LOCATED OUTSIDE THE
UNITED STATES.
(a) IN GENERAL.—Chapter 447 (as amended by this Act) is fur-

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ther amended by adding at the end the following:
‘‘§ 44733. Inspection of repair stations located outside the
United States
‘‘(a) IN GENERAL.—Not later than 1 year after the date of enactment of this section, the Administrator of the Federal Aviation Administration shall establish and implement a safety assessment system for all part 145 repair stations based on the type, scope, and
complexity of work being performed. The system shall—
‘‘(1) ensure that repair stations located outside the United
States are subject to appropriate inspections based on identified
risks and consistent with existing United States requirements;
‘‘(2) consider inspection results and findings submitted by
foreign civil aviation authorities operating under a maintenance safety or maintenance implementation agreement with
the United States; and

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54
‘‘(3) require all maintenance safety or maintenance implementation agreements to provide an opportunity for the Administration to conduct independent inspections of covered part 145
repair stations when safety concerns warrant such inspections.
‘‘(b) NOTICE TO CONGRESS OF NEGOTIATIONS.—The Administrator shall notify the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives not later than 30
days after initiating formal negotiations with foreign aviation authorities or other appropriate foreign government agencies on a new
maintenance safety or maintenance implementation agreement.
‘‘(c) ANNUAL REPORT.—The Administrator shall publish an annual report on the Administration’s oversight of part 145 repair stations and implementation of the safety assessment system required
under subsection (a). The report shall—
‘‘(1) describe in detail any improvements in the Administration’s ability to identify and track where part 121 air carrier repair work is performed;
‘‘(2) include a staffing model to determine the best placement of inspectors and the number of inspectors needed;
‘‘(3) describe the training provided to inspectors; and
‘‘(4) include an assessment of the quality of monitoring and
surveillance by the Administration of work performed by its inspectors and the inspectors of foreign authorities operating
under a maintenance safety or maintenance implementation
agreement.
‘‘(d) ALCOHOL AND CONTROLLED SUBSTANCES TESTING PROGRAM REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary of State and the Secretary
of Transportation, acting jointly, shall request the governments
of foreign countries that are members of the International Civil
Aviation Organization to establish international standards for
alcohol and controlled substances testing of persons that perform safety-sensitive maintenance functions on commercial air
carrier aircraft.
‘‘(2) APPLICATION TO PART 121 AIRCRAFT WORK.—Not later
than 1 year after the date of enactment of this section, the Administrator shall promulgate a proposed rule requiring that all
part 145 repair station employees responsible for safety-sensitive
maintenance functions on part 121 air carrier aircraft are subject to an alcohol and controlled substances testing program determined acceptable by the Administrator and consistent with
the applicable laws of the country in which the repair station
is located.
‘‘(e) ANNUAL INSPECTIONS.—The Administrator shall ensure
that part 145 repair stations located outside the United States are
inspected annually by Federal Aviation Administration safety inspectors, without regard to where the station is located, in a manner
consistent with United States obligations under international agreements. The Administrator may carry out inspections in addition to
the annual inspection required under this subsection based on identified risks.
‘‘(f) DEFINITIONS.—In this section, the following definitions
apply:

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‘‘(1) PART 121 AIR CARRIER.—The term ‘part 121 air carrier’
means an air carrier that holds a certificate issued under part
121 of title 14, Code of Federal Regulations.
‘‘(2) PART 145 REPAIR STATION.—The term ‘part 145 repair
station’ means a repair station that holds a certificate issued
under part 145 of title 14, Code of Federal Regulations.’’.
(b) CONFORMING AMENDMENT.—The analysis for chapter 447
(as amended by this Act) is further amended by adding at the end
the following:
‘‘44733. Inspection of repair stations located outside the United States.’’.
SEC. 309. ENHANCED TRAINING FOR FLIGHT ATTENDANTS.
(a) IN GENERAL.—Chapter 447 (as amended by this

Act) is fur-

ther amended by adding at the end the following:
‘‘§ 44734. Training of flight attendants
‘‘(a) TRAINING REQUIRED.—In addition to other training required under this chapter, each air carrier shall provide to flight attendants employed or contracted by such air carrier initial and annual training regarding—
‘‘(1) serving alcohol to passengers;
‘‘(2) recognizing intoxicated passengers; and
‘‘(3) dealing with disruptive passengers.
‘‘(b) SITUATIONAL TRAINING.—In carrying out the training required under subsection (a), each air carrier shall provide to flight
attendants situational training on the proper method for dealing
with intoxicated passengers who act in a belligerent manner.
‘‘(c) DEFINITIONS.—In this section, the following definitions
apply:
‘‘(1) AIR CARRIER.—The term ‘air carrier’ means a person,
including a commercial enterprise, that has been issued an air
carrier operating certificate under section 44705.
‘‘(2) FLIGHT ATTENDANT.—The term ‘flight attendant’ has
the meaning given that term in section 44728(g).’’.
(b) CLERICAL AMENDMENT.—The analysis for chapter 447 (as
amended by this Act) is further amended by adding at the end the
following:
‘‘44734. Training of flight attendants.’’.
SEC. 310. LIMITATION ON DISCLOSURE OF SAFETY INFORMATION.
(a) IN GENERAL.—Chapter 447 (as amended by this Act) is

fur-

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ther amended by adding at the end the following:
‘‘§ 44735. Limitation on disclosure of safety information
‘‘(a) IN GENERAL.—Except as provided by subsection (c), a report, data, or other information described in subsection (b) shall not
be disclosed to the public by the Administrator of the Federal Aviation Administration pursuant to section 552(b)(3)(B) of title 5 if the
report, data, or other information is submitted to the Federal Aviation Administration voluntarily and is not required to be submitted
to the Administrator under any other provision of law.
‘‘(b) APPLICABILITY.—The limitation established by subsection
(a) shall apply to the following:
‘‘(1) Reports, data, or other information developed under
the Aviation Safety Action Program.

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56
‘‘(2) Reports, data, or other information produced or collected under the Flight Operational Quality Assurance Program.
‘‘(3) Reports, data, or other information developed under
the Line Operations Safety Audit Program.
‘‘(4) Reports, data, or other information produced or collected for purposes of developing and implementing a safety
management system acceptable to the Administrator.
‘‘(5) Reports, analyses, and directed studies, based in whole
or in part on reports, data, or other information described in
paragraphs (1) through (4), including those prepared under the
Aviation Safety Information Analysis and Sharing Program (or
any successor program).
‘‘(c) EXCEPTION FOR DE-IDENTIFIED INFORMATION.—
‘‘(1) IN GENERAL.—The limitation established by subsection
(a) shall not apply to a report, data, or other information if the
information contained in the report, data, or other information
has been de-identified.
‘‘(2) DE-IDENTIFIED DEFINED.—In this subsection, the term
‘de-identified’ means the process by which all information that
is likely to establish the identity of the specific persons or entities submitting reports, data, or other information is removed
from the reports, data, or other information.’’.
(b) CLERICAL AMENDMENT.—The analysis for such chapter (as
amended by this Act) is further amended by adding at the end the
following:
‘‘44735. Limitation on disclosure of safety information.’’.
(c) TECHNICAL CORRECTION.—Section

44703(i)(9)(B)(i) is
amended by striking ‘‘section 552 of title 5’’ and inserting ‘‘section
552(b)(3)(B) of title 5’’.
SEC. 311. PROHIBITION AGAINST AIMING A LASER POINTER AT AN AIRCRAFT.
(a) OFFENSE.—Chapter 2 of title 18, United States Code, is

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amended by inserting after section 39 the following:
‘‘§ 39A. Aiming a laser pointer at an aircraft
‘‘(a) OFFENSE.—Whoever knowingly aims the beam of a laser
pointer at an aircraft in the special aircraft jurisdiction of the
United States, or at the flight path of such an aircraft, shall be
fined under this title or imprisoned not more than 5 years, or both.
‘‘(b) LASER POINTER DEFINED.—As used in this section, the term
‘laser pointer’ means any device designed or used to amplify electromagnetic radiation by stimulated emission that emits a beam designed to be used by the operator as a pointer or highlighter to indicate, mark, or identify a specific position, place, item, or object.
‘‘(c) EXCEPTIONS.—This section does not prohibit aiming a beam
of a laser pointer at an aircraft, or the flight path of such an aircraft, by—
‘‘(1) an authorized individual in the conduct of research
and development or flight test operations conducted by an aircraft manufacturer, the Federal Aviation Administration, or
any other person authorized by the Federal Aviation Administration to conduct such research and development or flight test
operations;

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‘‘(2) members or elements of the Department of Defense or
Department of Homeland Security acting in an official capacity
for the purpose of research, development, operations, testing, or
training; or
‘‘(3) by an individual using a laser emergency signaling device to send an emergency distress signal.
‘‘(d) AUTHORITY TO ESTABLISH ADDITIONAL EXCEPTIONS BY
REGULATION.—The Attorney General, in consultation with the Secretary of Transportation, may provide by regulation, after public notice and comment, such additional exceptions to this section as may
be necessary and appropriate. The Attorney General shall provide
written notification of any proposed regulations under this section
to the Committees on the Judiciary of the Senate and the House of
Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Transportation and
Infrastructure of the House of Representatives, not less than 90 days
before such regulations become final.’’.
(b) CLERICAL AMENDMENT.—The analysis for such chapter is
amended—
(1) by moving the item relating to section 39 after the item
relating to section 38; and
(2) by inserting after the item relating to section 39 the following:
‘‘39A. Aiming a laser pointer at an aircraft’’.

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SEC. 312. AIRCRAFT CERTIFICATION PROCESS REVIEW AND REFORM.
(a) IN GENERAL.—The Administrator of the Federal Aviation

Administration, in consultation with representatives of the aviation
industry, shall conduct an assessment of the certification and approval process under section 44704 of title 49, United States Code.
(b) CONTENTS.—In conducting the assessment, the Administrator shall consider—
(1) the expected number of applications for product certifications and approvals the Administrator will receive under section 44704 of such title in the 1-year, 5-year, and 10-year periods following the date of enactment of this Act;
(2) process reforms and improvements necessary to allow
the Administrator to review and approve the applications in a
fair and timely fashion;
(3) the status of recommendations made in previous reports
on the Administration’s certification process;
(4) methods for enhancing the effective use of delegation
systems, including organizational designation authorization;
(5) methods for training the Administration’s field office
employees in the safety management system and auditing; and
(6) the status of updating airworthiness requirements, including implementing recommendations in the Administration’s
report entitled ‘‘Part 23—Small Airplane Certification Process
Study’’ (OK–09–3468, dated July 2009).
(c) RECOMMENDATIONS.—In conducting the assessment, the Administrator shall make recommendations to improve efficiency and
reduce costs through streamlining and reengineering the certification process under section 44704 of such title to ensure that the
Administrator can conduct certifications and approvals under such
section in a manner that supports and enables the development of

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new products and technologies and the global competitiveness of the
United States aviation industry.
(d) REPORT TO CONGRESS.—Not later than 180 days after the
date of enactment of this Act, the Administrator shall submit to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the results of the assessment, together with an explanation of how the Administrator will
implement recommendations made under subsection (c) and measure the effectiveness of the recommendations.
(e) IMPLEMENTATION OF RECOMMENDATIONS.—Not later than 1
year after the date of enactment of this Act, the Administrator shall
begin to implement the recommendations made under subsection (c).
SEC. 313. CONSISTENCY OF REGULATORY INTERPRETATION.
(a) ESTABLISHMENT OF ADVISORY PANEL.—Not later

than 90
days after the date of enactment of this Act, the Administrator of
the Federal Aviation Administration shall establish an advisory
panel comprised of both Government and industry representatives
to—
(1) review the October 2010 report by the Government Accountability Office on certification and approval processes
(GAO–11–14); and
(2) develop recommendations to address the findings in the
report and other concerns raised by interested parties, including
representatives of the aviation industry.
(b) MATTERS TO BE CONSIDERED.—The advisory panel shall—
(1) determine the root causes of inconsistent interpretation
of regulations by the Administration’s Flight Standards Service
and Aircraft Certification Service;
(2) develop recommendations to improve the consistency of
interpreting regulations by the Administration’s Flight Standards Service and Aircraft Certification Service; and
(3) develop recommendations to improve communications
between the Administration’s Flight Standards Service and Aircraft Certification Service and applicants and certificate and
approval holders for the identification and resolution of potentially adverse issues in an expeditious and fair manner.
(c) REPORT TO CONGRESS.—Not later than 1 year after the date
of enactment of this Act, the Administrator shall transmit to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the findings of the advisory
panel, together with an explanation of how the Administrator will
implement the recommendations of the advisory panel and measure
the effectiveness of the recommendations.

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SEC. 314. RUNWAY SAFETY.
(a) STRATEGIC RUNWAY SAFETY
(1) IN GENERAL.—Not later

PLAN.—
than 6 months after the date of
enactment of this Act, the Administrator of the Federal Aviation
Administration shall develop and submit to Congress a report
containing a strategic runway safety plan.
(2) CONTENTS OF PLAN.—The strategic runway safety
plan—
(A) shall include, at a minimum—

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(i) goals to improve runway safety;
(ii) near- and long-term actions designed to reduce
the severity, number, and rate of runway incursions,
losses of standard separation, and operational errors;
(iii) time frames and resources needed for the actions described in clause (ii);
(iv) a continuous evaluative process to track performance toward the goals referred to in clause (i); and
(v) a review with respect to runway safety of every
commercial service airport (as defined in section 47102
of title 49, United States Code) in the United States
and proposed action to improve airport lighting, provide better signs, and improve runway and taxiway
markings at those airports; and
(B) shall address the increased runway safety risk associated with the expected increased volume of air traffic.
(b) PROCESS.—Not later than 6 months after the date of enactment of this Act, the Administrator shall develop a process for
tracking and investigating operational errors, losses of standard
separation, and runway incursions that includes procedures for—
(1) identifying who is responsible for tracking operational
errors, losses of standard separation, and runway incursions,
including a process for lower level employees to report to higher
supervisory levels and for frontline managers to receive the information in a timely manner;
(2) conducting periodic random audits of the oversight
process; and
(3) ensuring proper accountability.
(c) PLAN FOR INSTALLATION AND DEPLOYMENT OF SYSTEMS TO
PROVIDE ALERTS OF POTENTIAL RUNWAY INCURSIONS.—Not later
than June 30, 2012, the Administrator shall submit to Congress a
report containing a plan for the installation and deployment of systems to alert air traffic controllers or flight crewmembers, or both,
of potential runway incursions. The plan shall be integrated into
the annual NextGen Implementation Plan of the Administration or
any successor document.

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SEC. 315. FLIGHT STANDARDS EVALUATION PROGRAM.
(a) IN GENERAL.—Not later than 180 days after

the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall modify the Flight Standards Evaluation Program—
(1) to include periodic and random reviews as part of the
Administration’s oversight of air carriers; and
(2) to prohibit an individual from participating in a review
or audit of an office with responsibility for an air carrier under
the program if the individual, at any time in the 5-year period
preceding the date of the review or audit, had responsibility for
inspecting, or overseeing the inspection of, the operations of that
carrier.
(b) ANNUAL REPORT TO CONGRESS.—Not later than 1 year after
the date of enactment of this Act, and annually thereafter, the Administrator shall submit to the Committee on Commerce, Science,
and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report
on the Flight Standards Evaluation Program, including the Admin-

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60
istrator’s findings and recommendations with respect to the program.
(c) FLIGHT STANDARDS EVALUATION PROGRAM DEFINED.—In
this section, the term ‘‘Flight Standards Evaluation Program’’
means the program established by the Federal Aviation Administration in FS 1100.1B CHG3, including any subsequent revisions
thereto.
SEC. 316. COCKPIT SMOKE.
(a) STUDY.—The Comptroller

General of the United States shall
conduct a study on the effectiveness of oversight activities of the
Federal Aviation Administration relating to the use of new technologies to prevent or mitigate the effects of dense, continuous smoke
in the cockpit of a commercial aircraft.
(b) REPORT TO CONGRESS.—Not later than 18 months after the
date of enactment of this Act, the Comptroller General shall submit
to Congress a report on the results of the study.
SEC. 317. OFF-AIRPORT, LOW-ALTITUDE AIRCRAFT WEATHER OBSERVATION TECHNOLOGY.
(a) STUDY.—The Administrator of the Federal Aviation Admin-

istration shall conduct a review of off-airport, low-altitude aircraft
weather observation technologies.
(b) SPECIFIC REVIEW.—The review shall include, at a minimum,
an examination of off-airport, low-altitude weather reporting needs,
an assessment of technical alternatives (including automated weather observation stations), an investment analysis, and recommendations for improving weather reporting.
(c) REPORT TO CONGRESS.—Not later than 1 year after the date
of enactment of this Act, the Administrator shall submit to Congress
a report containing the results of the review.
SEC. 318. FEASIBILITY OF REQUIRING HELICOPTER PILOTS TO USE
NIGHT VISION GOGGLES.
(a) STUDY.—The Administrator of the Federal Aviation Admin-

istration shall carry out a study on the feasibility of requiring pilots
of helicopters providing air ambulance services under part 135 of
title 14, Code of Federal Regulations, to use night vision goggles
during nighttime operations.
(b) CONSIDERATIONS.—In conducting the study, the Administrator shall consult with owners and operators of helicopters providing air ambulance services under such part 135 and aviation
safety professionals to determine the benefits, financial considerations, and risks associated with requiring the use of night vision
goggles.
(c) REPORT TO CONGRESS.—Not later than 1 year after the date
of enactment of this Act, the Administrator shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on the results of the study.

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SEC. 319. MAINTENANCE PROVIDERS.
(a) REGULATIONS.—Not later than

3 years after the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall issue regulations requiring that covered work on
an aircraft used to provide air transportation under part 121 of title
14, Code of Federal Regulations, be performed by persons in accordance with subsection (b).

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(b) PERSONS AUTHORIZED TO PERFORM CERTAIN WORK.—A person may perform covered work on aircraft used to provide air transportation under part 121 of title 14, Code of Federal Regulations,
only if the person is employed by—
(1) a part 121 air carrier;
(2) a part 145 repair station or a person authorized under
section 43.17 of title 14, Code of Federal Regulations (or any
successor regulation); or
(3) subject to subsection (c), a person that—
(A) provides contract maintenance workers, services, or
maintenance functions to a part 121 air carrier or part 145
repair station; and
(B) meets the requirements of the part 121 air carrier
or the part 145 repair station, as appropriate.
(c) TERMS AND CONDITIONS.—Covered work performed by a person who is employed by a person described in subsection (b)(3) shall
be subject to the following terms and conditions:
(1) The applicable part 121 air carrier shall be directly in
charge of the covered work being performed.
(2) The covered work shall be carried out in accordance
with the part 121 air carrier’s maintenance manual.
(3) The person shall carry out the covered work under the
supervision and control of the part 121 air carrier directly in
charge of the covered work being performed on its aircraft.
(d) DEFINITIONS.—In this section, the following definitions
apply:
(1) COVERED WORK.—The term ‘‘covered work’’ means any
of the following:
(A) Essential maintenance that could result in a failure, malfunction, or defect endangering the safe operation
of an aircraft if not performed properly or if improper parts
or materials are used.
(B) Regularly scheduled maintenance.
(C) A required inspection item (as defined by the Administrator).
(2) PART 121 AIR CARRIER.—The term ‘‘part 121 air carrier’’
means an air carrier that holds a certificate issued under part
121 of title 14, Code of Federal Regulations.
(3) PART 145 REPAIR STATION.—The term ‘‘part 145 repair
station’’ means a repair station that holds a certificate issued
under part 145 of title 14, Code of Federal Regulations.
(4) PERSON.—The term ‘‘person’’ means an individual, firm,
partnership, corporation, company, or association that performs
maintenance, preventative maintenance, or alterations.

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SEC. 320. STUDY OF AIR QUALITY IN AIRCRAFT CABINS.
(a) IN GENERAL.—Not later than 1 year after the

date of enactment of this Act, the Administrator of the Federal Aviation Administration shall initiate a study of air quality in aircraft cabins to—
(1) assess bleed air quality on the full range of commercial
aircraft operating in the United States;
(2) identify oil-based contaminants, hydraulic fluid toxins,
and other air toxins that appear in cabin air and measure the
quantity and prevalence, or absence, of those toxins through a
comprehensive sampling program;

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(3) determine the specific amount and duration of toxic
fumes present in aircraft cabins that constitutes a health risk
to passengers;
(4) develop a systematic reporting standard for smoke and
fume events in aircraft cabins; and
(5) identify the potential health risks to individuals exposed
to toxic fumes during flight.
(b) AUTHORITY TO MONITOR AIR IN AIRCRAFT CABINS.—For
purposes of conducting the study required by subsection (a), the Administrator of the Federal Aviation Administration shall require domestic air carriers to allow air quality monitoring on their aircraft
in a manner that imposes no significant costs on the air carrier and
does not interfere with the normal operation of the aircraft.

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SEC. 321. IMPROVED PILOT LICENSES.
(a) IN GENERAL.—The Administrator

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

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(e) USE OF DESIGNEES.—The Administrator may use designees
to carry out subsection (a) to the extent practicable in order to minimize the burdens on pilots.
(f) REPORT TO CONGRESS.—
(1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Administrator
shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate a report
on the issuance of improved pilot licenses under this section.
(2) EXPIRATION.—The Administrator shall not be required
to submit annual reports under this subsection after the date on
which the Administrator has issued improved pilot licenses
under this section to all pilots.
Subtitle B—Unmanned Aircraft Systems
SEC. 331. DEFINITIONS.

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In this subtitle, the following definitions apply:
(1) ARCTIC.—The term ‘‘Arctic’’ means the United States
zone of the Chukchi Sea, Beaufort Sea, and Bering Sea north
of the Aleutian chain.
(2) CERTIFICATE OF WAIVER; CERTIFICATE OF AUTHORIZATION.—The terms ‘‘certificate of waiver’’ and ‘‘certificate of authorization’’ mean a Federal Aviation Administration grant of
approval for a specific flight operation.
(3) PERMANENT AREAS.—The term ‘‘permanent areas’’
means areas on land or water that provide for launch, recovery,
and operation of small unmanned aircraft.
(4) PUBLIC UNMANNED AIRCRAFT SYSTEM.—The term ‘‘public unmanned aircraft system’’ means an unmanned aircraft
system that meets the qualifications and conditions required for
operation of a public aircraft (as defined in section 40102 of
title 49, United States Code).
(5) SENSE AND AVOID CAPABILITY.—The term ‘‘sense and
avoid capability’’ means the capability of an unmanned aircraft
to remain a safe distance from and to avoid collisions with
other airborne aircraft.
(6) SMALL UNMANNED AIRCRAFT.—The term ‘‘small unmanned aircraft’’ means an unmanned aircraft weighing less
than 55 pounds.
(7) TEST RANGE.—The term ‘‘test range’’ means a defined
geographic area where research and development are conducted.
(8) UNMANNED AIRCRAFT.—The term ‘‘unmanned aircraft’’
means an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft.
(9) UNMANNED AIRCRAFT SYSTEM.—The term ‘‘unmanned
aircraft system’’ means an unmanned aircraft and associated
elements (including communication links and the components
that control the unmanned aircraft) that are required for the
pilot in command to operate safely and efficiently in the national airspace system.
SEC. 332. INTEGRATION OF CIVIL UNMANNED AIRCRAFT SYSTEMS
INTO NATIONAL AIRSPACE SYSTEM.
(a) REQUIRED PLANNING FOR INTEGRATION.—

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64
(1) COMPREHENSIVE PLAN.—Not later than 270 days after
the date of enactment of this Act, the Secretary of Transportation, in consultation with representatives of the aviation industry, Federal agencies that employ unmanned aircraft systems technology in the national airspace system, and the unmanned aircraft systems industry, shall develop a comprehensive plan to safely accelerate the integration of civil unmanned
aircraft systems into the national airspace system.
(2) CONTENTS OF PLAN.—The plan required under paragraph (1) shall contain, at a minimum, recommendations or
projections on—
(A) the rulemaking to be conducted under subsection
(b), with specific recommendations on how the rulemaking
will—
(i) define the acceptable standards for operation
and certification of civil unmanned aircraft systems;
(ii) ensure that any civil unmanned aircraft system
includes a sense and avoid capability; and
(iii) establish standards and requirements for the
operator and pilot of a civil unmanned aircraft system,
including standards and requirements for registration
and licensing;
(B) the best methods to enhance the technologies and
subsystems necessary to achieve the safe and routine operation of civil unmanned aircraft systems in the national
airspace system;
(C) a phased-in approach to the integration of civil unmanned aircraft systems into the national airspace system;
(D) a timeline for the phased-in approach described
under subparagraph (C);
(E) creation of a safe
(F) airspace designation for cooperative manned and
unmanned flight operations in the national airspace system;
(G) establishment of a process to develop certification,
flight standards, and air traffic requirements for civil unmanned aircraft systems at test ranges where such systems
are subject to testing;
(H) the best methods to ensure the safe operation of
civil unmanned aircraft systems and public unmanned aircraft systems simultaneously in the national airspace system; and
(I) incorporation of the plan into the annual NextGen
Implementation Plan document (or any successor document) of the Federal Aviation Administration.
(3) DEADLINE.—The plan required under paragraph (1)
shall provide for the safe integration of civil unmanned aircraft
systems into the national airspace system as soon as practicable, but not later than September 30, 2015.
(4) REPORT TO CONGRESS.—Not later than 1 year after the
date of enactment of this Act, the Secretary shall submit to Congress a copy of the plan required under paragraph (1).
(5) ROADMAP.—Not later than 1 year after the date of enactment of this Act, the Secretary shall approve and make available in print and on the Administration’s Internet Web site a

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65
5-year roadmap for the introduction of civil unmanned aircraft
systems into the national airspace system, as coordinated by the
Unmanned Aircraft Program Office of the Administration. The
Secretary shall update the roadmap annually.
(b) RULEMAKING.—Not later than 18 months after the date on
which the plan required under subsection (a)(1) is submitted to Congress under subsection (a)(4), the Secretary shall publish in the Federal Register—
(1) a final rule on small unmanned aircraft systems that
will allow for civil operation of such systems in the national
airspace system, to the extent the systems do not meet the requirements for expedited operational authorization under section 333 of this Act;
(2) a notice of proposed rulemaking to implement the recommendations of the plan required under subsection (a)(1),
with the final rule to be published not later than 16 months
after the date of publication of the notice; and
(3) an update to the Administration’s most recent policy
statement on unmanned aircraft systems, contained in Docket
No. FAA–2006–25714.
(c) PILOT PROJECTS.—
(1) ESTABLISHMENT.—Not later than 180 days after the
date of enactment of this Act, the Administrator shall establish
a program to integrate unmanned aircraft systems into the national airspace system at 6 test ranges. The program shall terminate 5 years after the date of enactment of this Act.
(2) PROGRAM REQUIREMENTS.—In establishing the program
under paragraph (1), the Administrator shall—
(A) safely designate airspace for integrated manned
and unmanned flight operations in the national airspace
system;
(B) develop certification standards and air traffic requirements for unmanned flight operations at test ranges;
(C) coordinate with and leverage the resources of the
National Aeronautics and Space Administration and the
Department of Defense;
(D) address both civil and public unmanned aircraft
systems;
(E) ensure that the program is coordinated with the
Next Generation Air Transportation System; and
(F) provide for verification of the safety of unmanned
aircraft systems and related navigation procedures before
integration into the national airspace system.
(3) TEST RANGE LOCATIONS.—In determining the location of
the 6 test ranges of the program under paragraph (1), the Administrator shall—
(A) take into consideration geographic and climatic diversity;
(B) take into consideration the location of ground infrastructure and research needs; and
(C) consult with the National Aeronautics and Space
Administration and the Department of Defense.
(4) TEST RANGE OPERATION.—A project at a test range shall
be operational not later than 180 days after the date on which
the project is established.

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(5) REPORT TO CONGRESS.—
(A) IN GENERAL.—Not later than 90 days after the date
of the termination of the program under paragraph (1), the
Administrator shall submit to the Committee on Commerce,
Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure and the Committee on Science, Space, and Technology of the House of
Representatives a report setting forth the Administrator’s
findings and conclusions concerning the projects.
(B) ADDITIONAL CONTENTS.—The report under subparagraph (A) shall include a description and assessment
of the progress being made in establishing special use airspace to fill the immediate need of the Department of Defense—
(i) to develop detection techniques for small unmanned aircraft systems; and
(ii) to validate the sense and avoid capability and
operation of unmanned aircraft systems.
(d) EXPANDING USE OF UNMANNED AIRCRAFT SYSTEMS IN ARCTIC.—
(1) IN GENERAL.—Not later than 180 days after the date of
enactment of this Act, the Secretary shall develop a plan and
initiate a process to work with relevant Federal agencies and
national and international communities to designate permanent
areas in the Arctic where small unmanned aircraft may operate
24 hours per day for research and commercial purposes. The
plan for operations in these permanent areas shall include the
development of processes to facilitate the safe operation of unmanned aircraft beyond line of sight. Such areas shall enable
over-water flights from the surface to at least 2,000 feet in altitude, with ingress and egress routes from selected coastal
launch sites.
(2) AGREEMENTS.—To implement the plan under paragraph
(1), the Secretary may enter into an agreement with relevant
national and international communities.
(3) AIRCRAFT APPROVAL.—Not later than 1 year after the
entry into force of an agreement necessary to effectuate the purposes of this subsection, the Secretary shall work with relevant
national and international communities to establish and implement a process, or may apply an applicable process already established, for approving the use of unmanned aircraft in the
designated permanent areas in the Arctic without regard to
whether an unmanned aircraft is used as a public aircraft, a
civil aircraft, or a model aircraft.

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SEC. 333. SPECIAL RULES FOR CERTAIN UNMANNED AIRCRAFT SYSTEMS.
(a) IN GENERAL.—Notwithstanding any other requirement of

this subtitle, and not later than 180 days after the date of enactment of this Act, the Secretary of Transportation shall determine if
certain unmanned aircraft systems may operate safely in the national airspace system before completion of the plan and rulemaking
required by section 332 of this Act or the guidance required by section 334 of this Act.

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

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SEC. 334. PUBLIC UNMANNED AIRCRAFT SYSTEMS.
(a) GUIDANCE.—Not later than 270 days after

the date of enactment of this Act, the Secretary of Transportation shall issue guidance regarding the operation of public unmanned aircraft systems
to—
(1) expedite the issuance of a certificate of authorization
process;
(2) provide for a collaborative process with public agencies
to allow for an incremental expansion of access to the national
airspace system as technology matures and the necessary safety
analysis and data become available, and until standards are
completed and technology issues are resolved;
(3) facilitate the capability of public agencies to develop
and use test ranges, subject to operating restrictions required by
the Federal Aviation Administration, to test and operate unmanned aircraft systems; and
(4) provide guidance on a public entity’s responsibility
when operating an unmanned aircraft without a civil airworthiness certificate issued by the Administration.
(b) STANDARDS FOR OPERATION AND CERTIFICATION.—Not later
than December 31, 2015, the Administrator shall develop and implement operational and certification requirements for the operation
of public unmanned aircraft systems in the national airspace system.
(c) AGREEMENTS WITH GOVERNMENT AGENCIES.—
(1) IN GENERAL.—Not later than 90 days after the date of
enactment of this Act, the Secretary shall enter into agreements
with appropriate government agencies to simplify the process
for issuing certificates of waiver or authorization with respect
to applications seeking authorization to operate public unmanned aircraft systems in the national airspace system.
(2) CONTENTS.—The agreements shall—
(A) with respect to an application described in paragraph (1)—
(i) provide for an expedited review of the application;

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(ii) require a decision by the Administrator on approval or disapproval within 60 business days of the
date of submission of the application; and
(iii) allow for an expedited appeal if the application is disapproved;
(B) allow for a one-time approval of similar operations
carried out during a fixed period of time; and
(C) allow a government public safety agency to operate
unmanned aircraft weighing 4.4 pounds or less, if operated—
(i) within the line of sight of the operator;
(ii) less than 400 feet above the ground;
(iii) during daylight conditions;
(iv) within Class G airspace; and
(v) outside of 5 statute miles from any airport, heliport, seaplane base, spaceport, or other location with
aviation activities.
SEC. 335. SAFETY STUDIES.

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

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SEC. 336. SPECIAL RULE FOR MODEL AIRCRAFT.
(a) IN GENERAL.—Notwithstanding any other

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

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(2) flown within visual line of sight of the person operating
the aircraft; and
(3) flown for hobby or recreational purposes.
Subtitle C—Safety and Protections

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SEC. 341. AVIATION SAFETY WHISTLEBLOWER INVESTIGATION OFFICE.

Section 106 (as amended by this Act) is further amended by
adding at the end the following:
‘‘(t) AVIATION SAFETY WHISTLEBLOWER INVESTIGATION OFFICE.—
‘‘(1) ESTABLISHMENT.—There is established in the Federal
Aviation Administration (in this subsection referred to as the
‘Agency’) an Aviation Safety Whistleblower Investigation Office
(in this subsection referred to as the ‘Office’).
‘‘(2) DIRECTOR.—
‘‘(A) APPOINTMENT.—The head of the Office shall be the
Director, who shall be appointed by the Secretary of Transportation.
‘‘(B) QUALIFICATIONS.—The Director shall have a demonstrated ability in investigations and knowledge of or experience in aviation.
‘‘(C) TERM.—The Director shall be appointed for a term
of 5 years.
‘‘(D) VACANCIES.—Any individual appointed to fill a
vacancy in the position of the Director occurring before the
expiration of the term for which the individual’s predecessor was appointed shall be appointed for the remainder
of that term.
‘‘(3) COMPLAINTS AND INVESTIGATIONS.—
‘‘(A) AUTHORITY OF DIRECTOR.—The Director shall—
‘‘(i) receive complaints and information submitted
by employees of persons holding certificates issued
under title 14, Code of Federal Regulations (if the certificate holder does not have a similar in-house whistleblower or safety and regulatory noncompliance reporting process) and employees of the Agency concerning
the possible existence of an activity relating to a violation of an order, a regulation, or any other provision
of Federal law relating to aviation safety;
‘‘(ii) assess complaints and information submitted
under clause (i) and determine whether a substantial
likelihood exists that a violation of an order, a regulation, or any other provision of Federal law relating to
aviation safety has occurred; and
‘‘(iii) based on findings of the assessment conducted under clause (ii), make recommendations to the
Administrator of the Agency, in writing, regarding further investigation or corrective actions.
‘‘(B) DISCLOSURE OF IDENTITIES.—The Director shall
not disclose the identity of an individual who submits a
complaint or information under subparagraph (A)(i) unless—
‘‘(i) the individual consents to the disclosure in
writing; or

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‘‘(ii) the Director determines, in the course of an investigation, that the disclosure is required by regulation, statute, or court order, or is otherwise unavoidable, in which case the Director shall provide the individual reasonable advanced notice of the disclosure.
‘‘(C) INDEPENDENCE OF DIRECTOR.—The Secretary, the
Administrator, or any officer or employee of the Agency
may not prevent or prohibit the Director from initiating,
carrying out, or completing any assessment of a complaint
or information submitted under subparagraph (A)(i) or
from reporting to Congress on any such assessment.
‘‘(D) ACCESS TO INFORMATION.—In conducting an assessment of a complaint or information submitted under
subparagraph (A)(i), the Director shall have access to all
records, reports, audits, reviews, documents, papers, recommendations, and other material of the Agency necessary
to determine whether a substantial likelihood exists that a
violation of an order, a regulation, or any other provision
of Federal law relating to aviation safety may have occurred.
‘‘(4) RESPONSES TO RECOMMENDATIONS.—Not later than 60
days after the date on which the Administrator receives a report
with respect to an investigation, the Administrator shall respond to a recommendation made by the Director under paragraph (3)(A)(iii) in writing and retain records related to any
further investigations or corrective actions taken in response to
the recommendation.
‘‘(5) INCIDENT REPORTS.—If the Director determines there is
a substantial likelihood that a violation of an order, a regulation, or any other provision of Federal law relating to aviation
safety has occurred that requires immediate corrective action,
the Director shall report the potential violation expeditiously to
the Administrator and the Inspector General of the Department
of Transportation.
‘‘(6) REPORTING OF CRIMINAL VIOLATIONS TO INSPECTOR
GENERAL.—If the Director has reasonable grounds to believe
that there has been a violation of Federal criminal law, the Director shall report the violation expeditiously to the Inspector
General.
‘‘(7) ANNUAL REPORTS TO CONGRESS.—Not later than October 1 of each year, the Director shall submit to Congress a report containing—
‘‘(A) information on the number of submissions of complaints and information received by the Director under
paragraph (3)(A)(i) in the preceding 12-month period;
‘‘(B) summaries of those submissions;
‘‘(C) summaries of further investigations and corrective
actions recommended in response to the submissions; and
‘‘(D) summaries of the responses of the Administrator
to such recommendations.’’.
SEC. 342. POSTEMPLOYMENT RESTRICTIONS FOR FLIGHT STANDARDS
INSPECTORS.
(a) IN GENERAL.—Section 44711 is amended by adding at the

end the following:

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‘‘(d) POSTEMPLOYMENT RESTRICTIONS FOR FLIGHT STANDARDS
INSPECTORS.—
‘‘(1) PROHIBITION.—A person holding an operating certificate issued under title 14, Code of Federal Regulations, may not
knowingly employ, or make a contractual arrangement that permits, an individual to act as an agent or representative of the
certificate holder in any matter before the Federal Aviation Administration if the individual, in the preceding 2-year period—
‘‘(A) served as, or was responsible for oversight of, a
flight standards inspector of the Administration; and
‘‘(B) had responsibility to inspect, or oversee inspection
of, the operations of the certificate holder.
‘‘(2) WRITTEN AND ORAL COMMUNICATIONS.—For purposes
of paragraph (1), an individual shall be considered to be acting
as an agent or representative of a certificate holder in a matter
before the Administration if the individual makes any written
or oral communication on behalf of the certificate holder to the
Administration (or any of its officers or employees) in connection with a particular matter, whether or not involving a specific party and without regard to whether the individual has
participated in, or had responsibility for, the particular matter
while serving as a flight standards inspector of the Administration.’’.
(b) APPLICABILITY.—The amendment made by subsection (a)
shall not apply to an individual employed by a certificate holder as
of the date of enactment of this Act.

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SEC. 343. REVIEW OF AIR TRANSPORTATION OVERSIGHT SYSTEM
DATABASE.
(a) REVIEWS.—The Administrator of the Federal Aviation Ad-

ministration shall establish a process by which the air transportation oversight system database of the Administration is reviewed
by regional teams of employees of the Administration, including at
least one employee on each team representing aviation safety inspectors, on a monthly basis to ensure that—
(1) any trends in regulatory compliance are identified; and
(2) appropriate corrective actions are taken in accordance
with Administration regulations, advisory directives, policies,
and procedures.
(b) MONTHLY TEAM REPORTS.—
(1) IN GENERAL.—A regional team of employees conducting
a monthly review of the air transportation oversight system
database under subsection (a) shall submit to the Administrator, the Associate Administrator for Aviation Safety, and the
Director of Flight Standards Service a report each month on the
results of the review.
(2) CONTENTS.—A report submitted under paragraph (1)
shall identify—
(A) any trends in regulatory compliance discovered by
the team of employees in conducting the monthly review;
and
(B) any corrective actions taken or proposed to be taken
in response to the trends.
(c) BIANNUAL REPORTS TO CONGRESS.—The Administrator, on
a biannual basis, shall submit to the Committee on Transportation
and Infrastructure of the House of Representatives and the Com-

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mittee on Commerce, Science, and Transportation of the Senate a
report on the results of the reviews of the air transportation oversight system database conducted under this section, including copies
of reports received under subsection (b).
SEC. 344. IMPROVED VOLUNTARY DISCLOSURE REPORTING SYSTEM.
(a) VOLUNTARY DISCLOSURE REPORTING PROGRAM DEFINED.—

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

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SEC. 345. DUTY PERIODS AND FLIGHT TIME LIMITATIONS APPLICABLE
TO FLIGHT CREWMEMBERS.
(a) RULEMAKING ON APPLICABILITY OF PART 121 DUTY PERIODS
AND FLIGHT TIME LIMITATIONS TO PART 91 OPERATIONS.—Not later

than 180 days after the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall initiate a rulemaking proceeding, if such a proceeding has not already been initiated, to require a flight crewmember who is employed by an air carrier conducting operations under part 121 of title 14, Code of Fed-

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eral Regulations, and who accepts an additional assignment for flying under part 91 of such title from the air carrier or from any
other air carrier conducting operations under part 121 or 135 of
such title, to apply the period of the additional assignment (regardless of whether the assignment is performed by the flight crewmember before or after an assignment to fly under part 121 of such
title) toward any limitation applicable to the flight crewmember relating to duty periods or flight times under part 121 of such title.
(b) RULEMAKING ON APPLICABILITY OF PART 135 DUTY PERIODS
AND FLIGHT TIME LIMITATIONS TO PART 91 OPERATIONS.—Not later
than 1 year after the date of enactment of this Act, the Administrator shall initiate a rulemaking proceeding to require a flight
crewmember who is employed by an air carrier conducting operations under part 135 of title 14, Code of Federal Regulations, and
who accepts an additional assignment for flying under part 91 of
such title from the air carrier or any other air carrier conducting
operations under part 121 or 135 of such title, to apply the period
of the additional assignment (regardless of whether the assignment
is performed by the flight crewmember before or after an assignment
to fly under part 135 of such title) toward any limitation applicable
to the flight crewmember relating to duty periods or flight times
under part 135 of such title.
(c) SEPARATE RULEMAKING PROCEEDINGS REQUIRED.—The rulemaking proceeding required under subsection (b) shall be separate
from the rulemaking proceeding required under subsection (a).
SEC. 346. CERTAIN EXISTING FLIGHT TIME LIMITATIONS AND REST
REQUIREMENTS.

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

pwalker on DSK7TPTVN1PROD with REPORTS

SEC. 347. EMERGENCY LOCATOR TRANSMITTERS ON GENERAL AVIATION AIRCRAFT.
(a) INSPECTION.—As part of the annual inspection of general

aviation aircraft, the Administrator of the Federal Aviation Administration shall require a detailed inspection of each emergency locator transmitter (in this section referred to as an ‘‘ELT’’) installed in
general aviation aircraft operating in the United States to ensure
that the ELT is mounted and retained in accordance with the manufacturer’s specifications.
(b) MOUNTING AND RETENTION.—
(1) IN GENERAL.—Not later than 90 days after the date of
enactment of this Act, the Administrator shall determine if the
ELT mounting requirements and retention tests specified by
Technical Standard Orders C91a and C126 are adequate to assess retention capabilities in ELT designs.
(2) REVISION.—Based on the determination under paragraph (1), the Administrator shall make any necessary revisions
to the requirements and retention tests referred to in paragraph
(1) to ensure that ELTs are properly retained in the event of an
aircraft accident.
(c) REPORT.—Upon the completion of any revisions under subsection (b)(2), the Administrator shall submit a report on the implementation of this section to—

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(1) the Committee on Commerce, Science, and Transportation of the Senate; and
(2) the Committee on Transportation and Infrastructure of
the House of Representatives.
TITLE IV—AIR SERVICE IMPROVEMENTS
Subtitle A—Passenger Air Service Improvements
SEC. 401. SMOKING PROHIBITION.
(a) IN GENERAL.—Section 41706

is amended—
(1) in the section heading by striking ‘‘scheduled’’ and inserting ‘‘passenger’’; and
(2) by striking subsections (a) and (b) and inserting the following:
‘‘(a) SMOKING PROHIBITION IN INTERSTATE AND INTRASTATE AIR
TRANSPORTATION.—An individual may not smoke—
‘‘(1) in an aircraft in scheduled passenger interstate or
intrastate air transportation; or
‘‘(2) in an aircraft in nonscheduled passenger interstate or
intrastate air transportation, if a flight attendant is a required
crewmember on the aircraft (as determined by the Administrator of the Federal Aviation Administration).
‘‘(b) SMOKING PROHIBITION IN FOREIGN AIR TRANSPORTATION.—
The Secretary of Transportation shall require all air carriers and
foreign air carriers to prohibit smoking—
‘‘(1) in an aircraft in scheduled passenger foreign air transportation; and
‘‘(2) in an aircraft in nonscheduled passenger foreign air
transportation, if a flight attendant is a required crewmember
on the aircraft (as determined by the Administrator or a foreign
government).’’.
(b) CLERICAL AMENDMENT.—The analysis for chapter 417 is
amended by striking the item relating to section 41706 and inserting the following:
‘‘41706. Prohibitions against smoking on passenger flights.’’.

pwalker on DSK7TPTVN1PROD with REPORTS

SEC. 402. MONTHLY AIR CARRIER REPORTS.
(a) IN GENERAL.—Section 41708 is amended

by adding at the
end the following:
‘‘(c) DIVERTED AND CANCELLED FLIGHTS.—
‘‘(1) MONTHLY REPORTS.—The Secretary shall require an
air carrier referred to in paragraph (2) to file with the Secretary
a monthly report on each flight of the air carrier that is diverted from its scheduled destination to another airport and
each flight of the air carrier that departs the gate at the airport
at which the flight originates but is cancelled before wheels-off
time.
‘‘(2) APPLICABILITY.—An air carrier that is required to file
a monthly airline service quality performance report pursuant
to part 234 of title 14, Code of Federal Regulations, shall be
subject to the requirement of paragraph (1).
‘‘(3) CONTENTS.—A monthly report filed by an air carrier
under paragraph (1) shall include, at a minimum, the following
information:
‘‘(A) For a diverted flight—

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‘‘(i) the flight number of the diverted flight;
‘‘(ii) the scheduled destination of the flight;
‘‘(iii) the date and time of the flight;
‘‘(iv) the airport to which the flight was diverted;
‘‘(v) wheels-on time at the diverted airport;
‘‘(vi) the time, if any, passengers deplaned the aircraft at the diverted airport; and
‘‘(vii) if the flight arrives at the scheduled destination airport—
‘‘(I) the gate-departure time at the diverted airport;
‘‘(II) the wheels-off time at the diverted airport;
‘‘(III) the wheels-on time at the scheduled arrival airport; and
‘‘(IV) the gate-arrival time at the scheduled arrival airport.
‘‘(B) For flights cancelled after gate departure—
‘‘(i) the flight number of the cancelled flight;
‘‘(ii) the scheduled origin and destination airports
of the cancelled flight;
‘‘(iii) the date and time of the cancelled flight;
‘‘(iv) the gate-departure time of the cancelled flight;
and
‘‘(v) the time the aircraft returned to the gate.
‘‘(4) PUBLICATION.—The Secretary shall compile the information provided in the monthly reports filed pursuant to paragraph (1) in a single monthly report and publish such report
on the Internet Web site of the Department of Transportation.’’.
(b) EFFECTIVE DATE.—Beginning not later than 90 days after
the date of enactment of this Act, the Secretary of Transportation
shall require monthly reports pursuant to the amendment made by
subsection (a).
SEC. 403. MUSICAL INSTRUMENTS.
(a) IN GENERAL.—Subchapter

I of chapter 417 is amended by

pwalker on DSK7TPTVN1PROD with REPORTS

adding at the end the following:
‘‘§ 41724. Musical instruments
‘‘(a) IN GENERAL.—
‘‘(1) SMALL INSTRUMENTS AS CARRY-ON BAGGAGE.—An air
carrier providing air transportation shall permit a passenger to
carry a violin, guitar, or other musical instrument in the aircraft cabin, without charging the passenger a fee in addition to
any standard fee that carrier may require for comparable carryon baggage, if—
‘‘(A) the instrument can be stowed safely in a suitable
baggage compartment in the aircraft cabin or under a passenger seat, in accordance with the requirements for carriage of carry-on baggage or cargo established by the Administrator; and
‘‘(B) there is space for such stowage at the time the passenger boards the aircraft.
‘‘(2) LARGER INSTRUMENTS AS CARRY-ON BAGGAGE.—An air
carrier providing air transportation shall permit a passenger to
carry a musical instrument that is too large to meet the requirements of paragraph (1) in the aircraft cabin, without charging

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the passenger a fee in addition to the cost of the additional ticket described in subparagraph (E), if—
‘‘(A) the instrument is contained in a case or covered so
as to avoid injury to other passengers;
‘‘(B) the weight of the instrument, including the case or
covering, does not exceed 165 pounds or the applicable
weight restrictions for the aircraft;
‘‘(C) the instrument can be stowed in accordance with
the requirements for carriage of carry-on baggage or cargo
established by the Administrator;
‘‘(D) neither the instrument nor the case contains any
object not otherwise permitted to be carried in an aircraft
cabin because of a law or regulation of the United States;
and
‘‘(E) the passenger wishing to carry the instrument in
the aircraft cabin has purchased an additional seat to accommodate the instrument.
‘‘(3) LARGE INSTRUMENTS AS CHECKED BAGGAGE.—An air
carrier shall transport as baggage a musical instrument that is
the property of a passenger traveling in air transportation that
may not be carried in the aircraft cabin if—
‘‘(A) the sum of the length, width, and height measured
in inches of the outside linear dimensions of the instrument
(including the case) does not exceed 150 inches or the applicable size restrictions for the aircraft;
‘‘(B) the weight of the instrument does not exceed 165
pounds or the applicable weight restrictions for the aircraft;
and
‘‘(C) the instrument can be stowed in accordance with
the requirements for carriage of carry-on baggage or cargo
established by the Administrator.
‘‘(b) REGULATIONS.—Not later than 2 years after the date of enactment of this section, the Secretary shall issue final regulations to
carry out subsection (a).
‘‘(c) EFFECTIVE DATE.—The requirements of this section shall
become effective on the date of issuance of the final regulations
under subsection (b).’’.
(b) CONFORMING AMENDMENT.—The analysis for such subchapter is amended by adding at the end the following:
‘‘41724. Musical instruments.’’.
SEC. 404. EXTENSION OF COMPETITIVE ACCESS REPORTS.

Section 47107(s)(3) is amended to read as follows:
‘‘(3) SUNSET PROVISION.—This subsection shall cease to be
effective beginning October 1, 2015.’’.

pwalker on DSK7TPTVN1PROD with REPORTS

SEC. 405. AIRFARES FOR MEMBERS OF THE ARMED FORCES.
(a) FINDINGS.—Congress finds that—

(1) the Armed Forces is comprised of approximately
1,450,000 members who are stationed on active duty at more
than 6,000 military bases in 146 different countries;
(2) the United States is indebted to the members of the
Armed Forces, many of whom are in grave danger due to their
engagement in, or exposure to, combat;
(3) military service, especially in the current war against
terrorism, often requires members of the Armed Forces to be

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separated from their families on short notice, for long periods
of time, and under very stressful conditions;
(4) the unique demands of military service often preclude
members of the Armed Forces from purchasing discounted advance airline tickets in order to visit their loved ones at home;
and
(5) it is the patriotic duty of the people of the United States
to support the members of the Armed Forces who are defending
the Nation’s interests around the world at great personal sacrifice.
(b) SENSE OF CONGRESS.—It is the sense of Congress that—
(1) all United States commercial air carriers should seek to
lend their support with flexible, generous policies applicable to
members of the Armed Forces who are traveling on leave or liberty at their own expense; and
(2) each United States air carrier, for all members of the
Armed Forces who have been granted leave or liberty and who
are traveling by air at their own expense, should—
(A) seek to provide reduced air fares that are comparable to the lowest airfare for ticketed flights and that
eliminate to the maximum extent possible advance purchase requirements;
(B) seek to eliminate change fees or charges and any
penalties;
(C) seek to eliminate or reduce baggage and excess
weight fees;
(D) offer flexible terms that allow members to purchase,
modify, or cancel tickets without time restrictions, and to
waive fees (including baggage fees), ancillary costs, or penalties; and
(E) seek to take proactive measures to ensure that all
airline employees, particularly those who issue tickets and
respond to members of the Armed Forces and their family
members, are trained in the policies of the airline aimed at
benefitting members of the Armed Forces who are on leave
or liberty.

pwalker on DSK7TPTVN1PROD with REPORTS

SEC. 406. REVIEW OF AIR CARRIER FLIGHT DELAYS, CANCELLATIONS,
AND ASSOCIATED CAUSES.
(a) REVIEW.—The Inspector General of the Department of

Transportation shall conduct a review regarding air carrier flight
delays, cancellations, and associated causes to update the 2000 report numbered CR–2000–112 and titled ‘‘Audit of Air Carrier Flight
Delays and Cancellations’’.
(b) ASSESSMENTS.—In conducting the review under subsection
(a), the Inspector General shall assess—
(1) the need for an update on delay and cancellation statistics, including with respect to the number of chronically delayed
flights and taxi-in and taxi-out times;
(2) air carriers’ scheduling practices;
(3) the need for a reexamination of capacity benchmarks at
the Nation’s busiest airports;
(4) the impact of flight delays and cancellations on air
travelers, including recommendations for programs that could
be implemented to address the impact of flight delays on air
travelers;

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(5) the effect that limited air carrier service options on
routes have on the frequency of delays and cancellations on
such routes;
(6) the effect of the rules and regulations of the Department
of Transportation on the decisions of air carriers to delay or
cancel flights; and
(7) the impact of flight delays and cancellations on the airline industry.
(c) REPORT TO CONGRESS.—Not later than 1 year after the date
of enactment of this Act, the Inspector General shall submit to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the results of the review
conducted under this section, including the assessments described in
subsection (b).
SEC. 407. COMPENSATION FOR DELAYED BAGGAGE.
(a) STUDY.—The Comptroller General of the United

States shall
conduct a study to—
(1) examine delays in the delivery of checked baggage to
passengers of air carriers; and
(2) assess the options for and examine the impact of establishing minimum standards to compensate a passenger in the
case of an unreasonable delay in the delivery of checked baggage.
(b) CONSIDERATION.—In conducting the study, the Comptroller
General shall take into account the additional fees for checked baggage that are imposed by many air carriers and how the additional
fees should improve an air carrier’s baggage performance.
(c) REPORT TO CONGRESS.—Not later than 180 days after the
date of enactment of this Act, the Comptroller General shall transmit to Congress a report on the results of the study.
SEC. 408. DOT AIRLINE CONSUMER COMPLAINT INVESTIGATIONS.

The Secretary of Transportation may investigate consumer complaints regarding—
(1) flight cancellations;
(2) compliance with Federal regulations concerning overbooking seats on flights;
(3) lost, damaged, or delayed baggage, and difficulties with
related airline claims procedures;
(4) problems in obtaining refunds for unused or lost tickets
or fare adjustments;
(5) incorrect or incomplete information about fares, discount fare conditions and availability, overcharges, and fare increases;
(6) the rights of passengers who hold frequent flyer miles
or equivalent redeemable awards earned through customer-loyalty programs; and
(7) deceptive or misleading advertising.

pwalker on DSK7TPTVN1PROD with REPORTS

SEC. 409. STUDY OF OPERATORS REGULATED UNDER PART 135.
(a) STUDY REQUIRED.—The Administrator of the Federal

Aviation Administration, in consultation with interested parties, shall
conduct a study of operators regulated under part 135 of title 14,
Code of Federal Regulations.

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(b) CONTENTS.—In conducting the study under subsection (a),
the Administrator shall analyze the part 135 fleet in the United
States, which shall include analysis of—
(1) the size and type of aircraft in the fleet;
(2) the equipment utilized by the fleet;
(3) the hours flown each year by the fleet;
(4) the utilization rates with respect to the fleet;
(5) the safety record of various categories of use and aircraft types with respect to the fleet, through a review of the
database of the National Transportation Safety Board;
(6) the sales revenues of the fleet; and
(7) the number of passengers and airports served by the
fleet.
(c) REPORT TO CONGRESS.—Not later than 18 months after the
date of enactment of this Act, the Administrator shall submit to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the results of the study
conducted under subsection (a).
SEC. 410. USE OF CELL PHONES ON PASSENGER AIRCRAFT.
(a) CELL PHONE STUDY.—Not later than 120 days after

the date
of enactment of this Act, the Administrator of the Federal Aviation
Administration shall conduct a study on the impact of the use of
cell phones for voice communications in an aircraft during a flight
in scheduled passenger air transportation where currently permitted
by foreign governments in foreign air transportation.
(b) CONTENTS.—The study shall include—
(1) a review of foreign government and air carrier policies
on the use of cell phones during flight;
(2) a review of the extent to which passengers use cell
phones for voice communications during flight; and
(3) a summary of any impacts of cell phone use during
flight on safety, the quality of the flight experience of passengers, and flight attendants.
(c) COMMENT PERIOD.—Not later than 180 days after the date
of enactment of this Act, the Administrator shall publish in the Federal Register the results of the study and allow 60 days for public
comment.
(d) CELL PHONE REPORT.—Not later than 270 days after the
date of enactment of this Act, the Administrator shall submit to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the results of the study.

pwalker on DSK7TPTVN1PROD with REPORTS

SEC. 411. ESTABLISHMENT OF ADVISORY COMMITTEE FOR AVIATION
CONSUMER PROTECTION.
(a) IN GENERAL.—The Secretary of Transportation shall estab-

lish an advisory committee for aviation consumer protection to advise the Secretary in carrying out activities relating to airline customer service improvements.
(b) MEMBERSHIP.—The Secretary shall appoint the members of
the advisory committee, which shall be comprised of one representative each of—
(1) air carriers;
(2) airport operators;

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(3) State or local governments with expertise in consumer
protection matters; and
(4) nonprofit public interest groups with expertise in consumer protection matters.
(c) VACANCIES.—A vacancy in the advisory committee shall be
filled in the manner in which the original appointment was made.
(d) TRAVEL EXPENSES.—Members of the advisory committee
shall serve without pay but shall receive travel expenses, including
per diem in lieu of subsistence, in accordance with subchapter I of
chapter 57 of title 5, United States Code.
(e) CHAIRPERSON.—The Secretary shall designate, from among
the individuals appointed under subsection (b), an individual to
serve as chairperson of the advisory committee.
(f) DUTIES.—The duties of the advisory committee shall include—
(1) evaluating existing aviation consumer protection programs and providing recommendations for the improvement of
such programs, if needed; and
(2) providing recommendations for establishing additional
aviation consumer protection programs, if needed.
(g) REPORT TO CONGRESS.—Not later than February 1 of each
of the first 2 calendar years beginning after the date of enactment
of this Act, the Secretary shall transmit to Congress a report containing—
(1) the recommendations made by the advisory committee
during the preceding calendar year; and
(2) an explanation of how the Secretary has implemented
each recommendation and, for each recommendation not implemented, the Secretary’s reason for not implementing the recommendation.
(h) TERMINATION.—The advisory committee established under
this section shall terminate on September 30, 2015.
SEC. 412. DISCLOSURE OF SEAT DIMENSIONS TO FACILITATE THE USE
OF CHILD SAFETY SEATS ON AIRCRAFT.

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

pwalker on DSK7TPTVN1PROD with REPORTS

SEC. 413. SCHEDULE REDUCTION.
(a) IN GENERAL.—If the Administrator

of the Federal Aviation
Administration determines that—
(1) the aircraft operations of air carriers during any hour
at an airport exceed the hourly maximum departure and arrival
rate established by the Administrator for such operations; and
(2) the operations in excess of the maximum departure and
arrival rate for such hour at such airport are likely to have a
significant adverse effect on the safe and efficient use of navigable airspace,
the Administrator shall convene a meeting of such carriers to reduce
pursuant to section 41722 of title 49, United States Code, on a vol-

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untary basis, the number of such operations so as not to exceed the
maximum departure and arrival rate.
(b) NO AGREEMENT.—If the air carriers participating in a meeting with respect to an airport under subsection (a) are not able to
agree to a reduction in the number of flights to and from the airport
so as not to exceed the maximum departure and arrival rate, the
Administrator shall take such action as is necessary to ensure such
reduction is implemented.
(c) SUBSEQUENT SCHEDULE INCREASES.—Subsequent to any reduction in operations under subsection (a) or (b) at an airport, if the
Administrator determines that the hourly number of aircraft operations at that airport is less than the amount that can be handled
safely and efficiently, the Administrator shall ensure that priority is
given to United States air carriers in permitting additional aircraft
operations with respect to that hour.

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SEC. 414. RONALD REAGAN WASHINGTON NATIONAL AIRPORT SLOT
EXEMPTIONS.
(a) INCREASE IN NUMBER OF SLOT EXEMPTIONS.—Section 41718

is amended by adding at the end the following:
‘‘(g) ADDITIONAL SLOT EXEMPTIONS.—
‘‘(1) INCREASE IN SLOT EXEMPTIONS.—Not later than 90
days after the date of enactment of the FAA Modernization and
Reform Act of 2012, the Secretary shall grant, by order 16 exemptions from—
‘‘(A) the application of sections 49104(a)(5), 49109, and
41714 to air carriers to operate limited frequencies and aircraft on routes between Ronald Reagan Washington National Airport and airports located beyond the perimeter described in section 49109; and
‘‘(B) the requirements of subparts K and S of part 93,
Code of Federal Regulations.
‘‘(2) NEW ENTRANTS AND LIMITED INCUMBENTS.—Of the slot
exemptions made available under paragraph (1), the Secretary
shall make 8 available to limited incumbent air carriers or new
entrant air carriers (as such terms are defined in section
41714(h)). Such exemptions shall be allocated pursuant to the
application process established by the Secretary under subsection (d). The Secretary shall consider the extent to which the
exemptions will—
‘‘(A) provide air transportation with domestic network
benefits in areas beyond the perimeter described in section
49109;
‘‘(B) increase competition in multiple markets;
‘‘(C) not reduce travel options for communities served
by small hub airports and medium hub airports within the
perimeter described in section 49109;
‘‘(D) not result in meaningfully increased travel delays;
‘‘(E) enhance options for nonstop travel to and from the
beyond-perimeter airports that will be served as a result of
those exemptions;
‘‘(F) have a positive impact on the overall level of competition in the markets that will be served as a result of
those exemptions; or
‘‘(G) produce public benefits, including the likelihood
that the service to airports located beyond the perimeter de-

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82
scribed in section 49109 will result in lower fares, higher
capacity, and a variety of service options.
‘‘(3) IMPROVED NETWORK SLOTS.—Of the slot exemptions
made available under paragraph (1), the Secretary shall make
8 available to incumbent air carriers qualifying for status as a
non-limited incumbent carrier at Ronald Reagan Washington
National Airport as of the date of enactment of the FAA Modernization and Reform Act of 2012. Each such non-limited incumbent air carrier—
‘‘(A) may operate up to a maximum of 2 of the newly
authorized slot exemptions;
‘‘(B) prior to exercising an exemption made available
under paragraph (1), shall discontinue the use of a slot for
service between Ronald Reagan Washington National Airport and a large hub airport within the perimeter as described in section 49109, and operate, in place of such service, service between Ronald Reagan Washington National
Airport and an airport located beyond the perimeter described in section 49109;
‘‘(C) shall be entitled to return of the slot by the Secretary if use of the exemption made available to the carrier
under paragraph (1) is discontinued;
‘‘(D) shall have sole discretion concerning the use of an
exemption made available under paragraph (1), including
the initial or any subsequent beyond perimeter destinations
to be served; and
‘‘(E) shall file a notice of intent with the Secretary and
subsequent notices of intent, when appropriate, to inform
the Secretary of any change in circumstances concerning
the use of any exemption made available under paragraph
(1).
‘‘(4) NOTICES OF INTENT.—Notices of intent under paragraph (3)(E) shall specify the beyond perimeter destination to be
served and the slots the carrier shall discontinue using to serve
a large hub airport located within the perimeter.
‘‘(5) CONDITIONS.—Beyond-perimeter flight operations carried out by an air carrier using an exemption granted under
this subsection shall be subject to the following conditions:
‘‘(A) An air carrier may not operate a multi-aisle or
widebody aircraft in conducting such operations.
‘‘(B) An air carrier granted an exemption under this
subsection is prohibited from transferring the rights to its
beyond-perimeter exemptions pursuant to section 41714(j).
‘‘(h) SCHEDULING PRIORITY.—In administering this section, the
Secretary shall—
‘‘(1) afford a scheduling priority to operations conducted by
new entrant air carriers and limited incumbent air carriers
over operations conducted by other air carriers granted additional slot exemptions under subsection (g) for service to airports located beyond the perimeter described in section 49109;
‘‘(2) afford a scheduling priority to slot exemptions currently held by new entrant air carriers and limited incumbent
air carriers for service to airports located beyond the perimeter
described in section 49109, to the extent necessary to protect viability of such service; and

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83
‘‘(3) consider applications from foreign air carriers that are
certificated by the government of Canada if such consideration
is required by the bilateral aviation agreement between the
United States and Canada and so long as the conditions and
limitations under this section apply to such foreign air carriers.’’.
(b) HOURLY LIMITATION.—Section 41718(c)(2) is amended to
read as follows:
‘‘(2) GENERAL EXEMPTIONS.—
‘‘(A) HOURLY LIMITATION.—The exemptions granted—
‘‘(i) under subsections (a) and (b) and departures
authorized under subsection (g)(2) may not be for operations between the hours of 10:00 p.m. and 7:00 a.m.;
and
‘‘(ii) under subsections (a), (b), and (g) may not increase the number of operations at Ronald Reagan
Washington National Airport in any 1-hour period
during the hours between 7:00 a.m. and 9:59 p.m. by
more than 5 operations.
‘‘(B) USE OF EXISTING SLOTS.—A non-limited incumbent air carrier utilizing an exemption authorized under
subsection (g)(3) for an arrival permitted between the hours
of 10:01 p.m. and 11:00 p.m. under this section shall discontinue use of an existing slot during the same time period
the arrival exemption is operated.’’.
(c) LIMITED INCUMBENT DEFINITION.—Section 41714(h)(5) is
amended—
(1) in subparagraph (A) by striking ‘‘20’’ and inserting ‘‘40’’;
(2) by amending subparagraph (B) to read as follows:
‘‘(B) for purposes of such sections, the term ‘slot’ shall
not include—
‘‘(i) ‘slot exemptions’;
‘‘(ii) slots operated by an air carrier under a feefor-service arrangement for another air carrier, if the
air carrier operating such slots does not sell flights in
its own name, and is under common ownership with
an air carrier that seeks to qualify as a limited incumbent and that sells flights in its own name; or
‘‘(iii) slots held under a sale and license-back financing arrangement with another air carrier, where
the slots are under the marketing control of the other
air carrier; and’’.
(d) TRANSFER OF EXEMPTIONS.—Section 41714(j) is amended by
striking the period at the end and inserting ‘‘, except through an air
carrier merger or acquisition.’’.
(e) DEFINITION OF AIRPORT PURPOSES.—Section 49104(a)(2)(A)
is amended—
(1) in clause (ii) by striking ‘‘or’’ at the end;
(2) in clause (iii) by striking the period at the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(iv) a business or activity not inconsistent with the
needs of aviation that has been approved by the Secretary.’’.

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SEC. 415. PASSENGER AIR SERVICE IMPROVEMENTS.
(a) IN GENERAL.—Subtitle VII is amended by

inserting after

chapter 421 the following:
‘‘CHAPTER 423—PASSENGER AIR SERVICE
IMPROVEMENTS

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

‘‘§ 42301. Emergency contingency plans
‘‘(a) SUBMISSION OF AIR CARRIER AND AIRPORT PLANS.—Not
later than 90 days after the date of enactment of this section, each
of the following air carriers and airport operators shall submit to
the Secretary of Transportation for review and approval an emergency contingency plan in accordance with the requirements of this
section:
‘‘(1) An air carrier providing covered air transportation at
a commercial airport.
‘‘(2) An operator of a commercial airport.
‘‘(3) An operator of an airport used by an air carrier described in paragraph (1) for diversions.
‘‘(b) AIR CARRIER PLANS.—
‘‘(1) PLANS FOR INDIVIDUAL AIRPORTS.—An air carrier shall
submit an emergency contingency plan under subsection (a)
for—
‘‘(A) each airport at which the carrier provides covered
air transportation; and
‘‘(B) each airport at which the carrier has flights for
which the carrier has primary responsibility for inventory
control.
‘‘(2) CONTENTS.—An emergency contingency plan submitted
by an air carrier for an airport under subsection (a) shall contain a description of how the carrier will—
‘‘(A) provide adequate food, potable water, restroom facilities, comfortable cabin temperatures, and access to medical treatment for passengers onboard an aircraft at the
airport when the departure of a flight is delayed or the disembarkation of passengers is delayed;
‘‘(B) share facilities and make gates available at the
airport in an emergency; and
‘‘(C) allow passengers to deplane following an excessive
tarmac delay in accordance with paragraph (3).
‘‘(3) DEPLANING FOLLOWING AN EXCESSIVE TARMAC
DELAY.—For purposes of paragraph (2)(C), an emergency contingency plan submitted by an air carrier under subsection (a)
shall incorporate the following requirements:
‘‘(A) A passenger shall have the option to deplane an
aircraft and return to the airport terminal when there is an
excessive tarmac delay.
‘‘(B) The option described in subparagraph (A) shall be
offered to a passenger even if a flight in covered air transportation is diverted to a commercial airport other than the
originally scheduled airport.

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85
‘‘(C) Notwithstanding the requirements described in
subparagraphs (A) and (B), a passenger shall not have an
option to deplane an aircraft and return to the airport terminal in the case of an excessive tarmac delay if—
‘‘(i) an air traffic controller with authority over the
aircraft advises the pilot in command that permitting
a passenger to deplane would significantly disrupt airport operations; or
‘‘(ii) the pilot in command determines that permitting a passenger to deplane would jeopardize passenger
safety or security.
‘‘(c) AIRPORT PLANS.—An emergency contingency plan submitted
by an airport operator under subsection (a) shall contain a description of how the operator, to the maximum extent practicable, will—
‘‘(1) provide for the deplanement of passengers following excessive tarmac delays;
‘‘(2) provide for the sharing of facilities and make gates
available at the airport in an emergency; and
‘‘(3) provide a sterile area following excessive tarmac delays
for passengers who have not yet cleared United States Customs
and Border Protection.
‘‘(d) UPDATES.—
‘‘(1) AIR CARRIERS.—An air carrier shall update each emergency contingency plan submitted by the carrier under subsection (a) every 3 years and submit the update to the Secretary
for review and approval.
‘‘(2) AIRPORTS.—An airport operator shall update each
emergency contingency plan submitted by the operator under
subsection (a) every 5 years and submit the update to the Secretary for review and approval.
‘‘(e) APPROVAL.—
‘‘(1) IN GENERAL.—Not later than 60 days after the date of
the receipt of an emergency contingency plan submitted under
subsection (a) or an update submitted under subsection (d), the
Secretary shall review and approve or, if necessary, require
modifications to the plan or update to ensure that the plan or
update will effectively address emergencies and provide for the
health and safety of passengers.
‘‘(2) FAILURE TO APPROVE OR REQUIRE MODIFICATIONS.—If
the Secretary fails to approve or require modifications to a plan
or update under paragraph (1) within the timeframe specified
in that paragraph, the plan or update shall be deemed to be approved.
‘‘(3) ADHERENCE REQUIRED.—An air carrier or airport operator shall adhere to an emergency contingency plan of the carrier or operator approved under this section.
‘‘(f) MINIMUM STANDARDS.—The Secretary shall establish, as
necessary or desirable, minimum standards for elements in an
emergency contingency plan required to be submitted under this section.
‘‘(g) PUBLIC ACCESS.—An air carrier or airport operator required to submit an emergency contingency plan under this section
shall ensure public access to the plan after its approval under this
section on the Internet Web site of the carrier or operator or by such
other means as determined by the Secretary.

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‘‘(h) REPORTS.—Not later than 30 days after any flight experiences an excessive tarmac delay, the air carrier responsible for such
flight shall submit a written description of the incident and its resolution to the Aviation Consumer Protection Division of the Department of Transportation.
‘‘(i) DEFINITIONS.—In this section, the following definitions
apply:
‘‘(1) COMMERCIAL AIRPORT.—The term ‘commercial airport’
means a large hub, medium hub, small hub, or nonhub airport.
‘‘(2) COVERED AIR TRANSPORTATION.—The term ‘covered air
transportation’ means scheduled or public charter passenger air
transportation provided by an air carrier that operates an aircraft that as originally designed has a passenger capacity of 30
or more seats.
‘‘(3) TARMAC DELAY.—The term ‘tarmac delay’ means the
period during which passengers are on board an aircraft on the
tarmac—
‘‘(A) awaiting takeoff after the aircraft doors have been
closed or after passengers have been boarded if the passengers have not been advised they are free to deplane; or
‘‘(B) awaiting deplaning after the aircraft has landed.
‘‘(4) EXCESSIVE TARMAC DELAY.—The term ‘excessive tarmac
delay’ means a tarmac delay that lasts for a length of time, as
determined by the Secretary.
‘‘§ 42302. Consumer complaints
‘‘(a) IN GENERAL.—The Secretary of Transportation shall establish a consumer complaints toll-free hotline telephone number for
the use of passengers in air transportation and shall take actions
to notify the public of—
‘‘(1) that telephone number; and
‘‘(2) the Internet Web site of the Aviation Consumer Protection Division of the Department of Transportation.
‘‘(b) NOTICE TO PASSENGERS ON THE INTERNET.—An air carrier
or foreign air carrier providing scheduled air transportation using
any aircraft that as originally designed has a passenger capacity of
30 or more passenger seats shall include on the Internet Web site
of the carrier—
‘‘(1) the hotline telephone number established under subsection (a);
‘‘(2) the e-mail address, telephone number, and mailing address of the air carrier for the submission of complaints by passengers about air travel service problems; and
‘‘(3) the Internet Web site and mailing address of the Aviation Consumer Protection Division of the Department of Transportation for the submission of complaints by passengers about
air travel service problems.
‘‘(c) NOTICE TO PASSENGERS ON BOARDING DOCUMENTATION.—
An air carrier or foreign air carrier providing scheduled air transportation using any aircraft that as originally designed has a passenger capacity of 30 or more passenger seats shall include the hotline telephone number established under subsection (a) on—
‘‘(1) prominently displayed signs of the carrier at the airport ticket counters in the United States where the air carrier
operates; and

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‘‘(2) any electronic confirmation of the purchase of a passenger ticket for air transportation issued by the air carrier.
‘‘§ 42303. Use of insecticides in passenger aircraft
‘‘(a) INFORMATION TO BE PROVIDED ON THE INTERNET.—The
Secretary of Transportation shall establish, and make available to
the general public, an Internet Web site that contains a listing of
countries that may require an air carrier or foreign air carrier to
treat an aircraft passenger cabin with insecticides prior to a flight
in foreign air transportation to that country or to apply an aerosol
insecticide in an aircraft cabin used for such a flight when the
cabin is occupied with passengers.
‘‘(b) REQUIRED DISCLOSURES.—An air carrier, foreign air carrier, or ticket agent selling, in the United States, a ticket for a flight
in foreign air transportation to a country listed on the Internet Web
site established under subsection (a) shall refer the purchaser of the
ticket to the Internet Web site established under subsection (a) for
additional information.’’.
(b) PENALTIES.—Section 46301 is amended in subsections
(a)(1)(A) and (c)(1)(A) by inserting ‘‘chapter 423,’’ after ‘‘chapter
421,’’.
(c) APPLICABILITY OF REQUIREMENTS.—Except as otherwise provided, the requirements of chapter 423 of title 49, United States
Code, as added by this section, shall begin to apply 60 days after
the date of enactment of this Act.
(d) CLERICAL AMENDMENT.—The analysis for subtitle VII is
amended by inserting after the item relating to chapter 421 the following:
‘‘423. Passenger Air Service Improvements ..........................................................42301’’.

Subtitle B—Essential Air Service

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

Section 41731 is amended—
(1) in subsection (a)(1) by amending subparagraph (B) to
read as follows:
‘‘(B) had an average of 10 enplanements per service
day or more, as determined by the Secretary, during
the most recent fiscal year beginning after September
30, 2012;’’;
(2) by amending subsection (c) to read as follows:
‘‘(c) EXCEPTION FOR LOCATIONS IN ALASKA AND HAWAII.—Subparagraphs (B), (C), and (D) of subsection (a)(1) shall not apply
with respect to locations in the State of Alaska or the State of Hawaii.’’;
(3) by amending subsection (d) to read as follows:
‘‘(d) EXCEPTIONS FOR LOCATIONS MORE THAN 175 DRIVING
MILES FROM THE NEAREST LARGE OR MEDIUM HUB AIRPORT.—Subsection (a)(1)(B) shall not apply with respect to locations that are
more than 175 driving miles from the nearest large or medium hub
airport.’’; and
(4) by adding at the end the following:
‘‘(e) WAIVERS.—For fiscal year 2013 and each fiscal year thereafter, the Secretary may waive, on an annual basis, subsection

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(a)(1)(B) with respect to a location if the location demonstrates to
the Secretary’s satisfaction that the reason the location averages
fewer than 10 enplanements per day is due to a temporary decline
in enplanements.
‘‘(f) DEFINITION.—For purposes of subsection (a)(1)(B), the term
‘enplanements’ means the number of passengers enplaning, at an eligible place, on flights operated by the subsidized essential air service carrier.’’.
SEC. 422. ESSENTIAL AIR SERVICE ELIGIBILITY.

Section 41731(a)(1) is further amended—
(1) in subparagraph (C) by striking the period at the end
and inserting ‘‘; and’’; and
(2) by adding at the end the following:
‘‘(D) is a community that, at any time during the period between September 30, 2010, and September 30, 2011,
inclusive—
‘‘(i) received essential air service for which compensation was provided to an air carrier under this
subchapter; or
‘‘(ii) received a 90-day notice of intent to terminate
essential air service and the Secretary required the air
carrier to continue to provide such service to the community.’’.
SEC. 423. ESSENTIAL AIR SERVICE MARKETING.

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

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

Section 41733 is amended by adding at the end the following:
‘‘(f) NOTICE TO COMMUNITIES PRIOR TO TERMINATION OF ELIGIBILITY.—
‘‘(1) IN GENERAL.—The Secretary shall notify each community receiving basic essential air service for which compensation
is being paid under this subchapter on or before the 45th day
before issuing any final decision to end the payment of such
compensation due to a determination by the Secretary that providing such service requires a rate of subsidy per passenger in
excess of the subsidy cap.
‘‘(2) PROCEDURES TO AVOID TERMINATION.—The Secretary
shall establish, by order, procedures by which each community
notified of an impending loss of subsidy under paragraph (1)
may work directly with an air carrier to ensure that the air carrier is able to submit a proposal to the Secretary to provide essential air service to such community for an amount of compensation that would not exceed the subsidy cap.
‘‘(3) ASSISTANCE PROVIDED.—The Secretary shall provide,
by order, information to each community notified under paragraph (1) regarding—

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‘‘(A) the procedures established pursuant to paragraph
(2); and
‘‘(B) the maximum amount of compensation that could
be provided under this subchapter to an air carrier serving
such community that would comply with basic essential air
service and the subsidy cap.’’.
SEC. 425. RESTORATION OF ELIGIBILITY TO A PLACE DETERMINED TO
BE INELIGIBLE FOR SUBSIDIZED ESSENTIAL AIR SERVICE.

Section 41733 is further amended by adding at the end the following:
‘‘(g) PROPOSALS OF STATE AND LOCAL GOVERNMENTS TO RESTORE ELIGIBILITY.—
‘‘(1) IN GENERAL.—If the Secretary, after the date of enactment of this subsection, ends payment of compensation to an air
carrier for providing basic essential air service to an eligible
place because the Secretary has determined that providing such
service requires a rate of subsidy per passenger in excess of the
subsidy cap or that the place is no longer an eligible place pursuant to section 41731(a)(1)(B), a State or local government
may submit to the Secretary a proposal for restoring compensation for such service. Such proposal shall be a joint proposal of
the State or local government and an air carrier.
‘‘(2) DETERMINATION BY SECRETARY.—The Secretary shall
issue an order restoring the eligibility of the otherwise eligible
place to receive basic essential air service by an air carrier for
compensation under subsection (c) if—
‘‘(A) a State or local government submits to the Secretary a proposal under paragraph (1); and
‘‘(B) the Secretary determines that—
‘‘(i) the rate of subsidy per passenger under the
proposal does not exceed the subsidy cap;
‘‘(ii) the proposal is likely to result in an average
number of enplanements per day that will satisfy the
requirement in section 41731(a)(1)(B); and
‘‘(iii) the proposal is consistent with the legal and
regulatory requirements of the essential air service program.
‘‘(h) SUBSIDY CAP DEFINED.—In this section, the term ‘subsidy
cap’ means the subsidy-per-passenger cap established by section 332
of the Department of Transportation and Related Agencies Appropriations Act, 2000 (Public Law 106–69; 113 Stat. 1022).’’.

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SEC. 426. ADJUSTMENTS TO COMPENSATION FOR SIGNIFICANTLY INCREASED COSTS.
(a) EMERGENCY ACROSS-THE-BOARD ADJUSTMENT.—Subject to

the availability of funds, the Secretary may increase the rates of
compensation payable to air carriers under subchapter II of chapter
417 of title 49, United States Code, to compensate such carriers for
increased aviation fuel costs without regard to any agreement or requirement relating to the renegotiation of contracts or any notice requirement under section 41734 of such title.
(b) EXPEDITED PROCESS FOR ADJUSTMENTS TO INDIVIDUAL
CONTRACTS.—
(1) IN GENERAL.—Section 41734(d) is amended by striking
‘‘continue to pay’’ and all that follows through ‘‘compensation

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sufficient—’’ and inserting ‘‘provide the carrier with compensation sufficient—’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply to compensation to air carriers for air service
provided after the 30th day following the date of enactment of
this Act.
(c) SUBSIDY CAP.—Subject to the availability of funds, the Secretary may waive, on a case-by-case basis, the subsidy-per-passenger
cap established by section 332 of the Department of Transportation
and Related Agencies Appropriations Act, 2000 (Public Law 106–69;
113 Stat. 1022). A waiver issued under this subsection shall remain
in effect for a limited period of time, as determined by the Secretary.
SEC. 427. ESSENTIAL AIR SERVICE CONTRACT GUIDELINES.
(a) COMPENSATION GUIDELINES.—Section 41737(a)(1)

is amend-

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

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SEC. 428. ESSENTIAL AIR SERVICE REFORM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section

41742(a) is
amended—
(1) in paragraph (1)—
(A) by inserting ‘‘for each fiscal year’’ before ‘‘is authorized’’; and

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(B) by striking ‘‘under this subchapter for each fiscal
year’’ and inserting ‘‘under this subchapter’’; and
(2) in paragraph (2) by striking ‘‘and $54,699,454 for the
period beginning on October 1, 2011, and ending on February
17, 2012,’’ and inserting ‘‘, $143,000,000 for fiscal year 2012,
$118,000,000 for fiscal year 2013, $107,000,000 for fiscal year
2014, and $93,000,000 for fiscal year 2015’’.
(b) DISTRIBUTION OF ADDITIONAL FUNDS.—Section 41742(b) is
amended to read as follows:
‘‘(b) DISTRIBUTION OF ADDITIONAL FUNDS.—Notwithstanding
any other provision of law, in any fiscal year in which funds credited to the account established under section 45303, including the
funds derived from fees imposed under the authority contained in
section 45301(a), exceed the $50,000,000 made available under subsection (a)(1), such funds shall be made available immediately for
obligation and expenditure to carry out the essential air service program under this subchapter.’’.
(c) AVAILABILITY OF FUNDS.—Section 41742 is amended by adding at the end the following:
‘‘(c) AVAILABILITY OF FUNDS.—The funds made available under
this section shall remain available until expended.’’.
SEC. 429. SMALL COMMUNITY AIR SERVICE.
(a) PRIORITIES.—Section 41743(c)(5) is

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

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

Section 41747, and the item relating to section 41747 in the
analysis for chapter 417, are repealed.
SEC. 431. EXTENSION OF FINAL ORDER ESTABLISHING MILEAGE ADJUSTMENT ELIGIBILITY.

Section 409(d) of the Vision 100—Century of Aviation Reauthorization Act (49 U.S.C. 41731 note) is amended by striking ‘‘February 17, 2012.’’ and inserting ‘‘September 30, 2015.’’.
TITLE V—ENVIRONMENTAL STREAMLINING

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SEC. 501. OVERFLIGHTS OF NATIONAL PARKS.
(a) GENERAL REQUIREMENTS.—Section

40128(a)(1)(C) is
amended by inserting ‘‘or voluntary agreement under subsection
(b)(7)’’ before ‘‘for the park’’.
(b) EXEMPTION FOR NATIONAL PARKS WITH 50 OR FEWER
FLIGHTS EACH YEAR.—Section 40128(a) is amended by adding at
the end the following:

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‘‘(5) EXEMPTION FOR NATIONAL PARKS WITH 50 OR FEWER
FLIGHTS EACH YEAR.—
‘‘(A) IN GENERAL.—Notwithstanding paragraph (1), a
national park that has 50 or fewer commercial air tour operations over the park each year shall be exempt from the
requirements of this section, except as provided in subparagraph (B).
‘‘(B) WITHDRAWAL OF EXEMPTION.—If the Director determines that an air tour management plan or voluntary
agreement is necessary to protect park resources and values
or park visitor use and enjoyment, the Director shall withdraw the exemption of a park under subparagraph (A).
‘‘(C) LIST OF PARKS.—
‘‘(i) IN GENERAL.—The Director and Administrator
shall jointly publish a list each year of national parks
that are covered by the exemption provided under this
paragraph.
‘‘(ii) NOTIFICATION OF WITHDRAWAL OF EXEMPTION.—The Director shall inform the Administrator, in
writing, of each determination to withdraw an exemption under subparagraph (B).
‘‘(D) ANNUAL REPORT.—A commercial air tour operator
conducting commercial air tour operations over a national
park that is exempt from the requirements of this section
shall submit to the Administrator and the Director a report
each year that includes the number of commercial air tour
operations the operator conducted during the preceding 1year period over such park.’’.
(c) AIR TOUR MANAGEMENT PLANS.—Section 40128(b) is
amended—
(1) in paragraph (1) by adding at the end the following:
‘‘(C) EXCEPTION.—An application to begin commercial
air tour operations at Crater Lake National Park may be
denied without the establishment of an air tour management plan by the Director of the National Park Service if
the Director determines that such operations would adversely affect park resources or visitor experiences.’’; and
(2) by adding at the end the following:
‘‘(7) VOLUNTARY AGREEMENTS.—
‘‘(A) IN GENERAL.—As an alternative to an air tour
management plan, the Director and the Administrator may
enter into a voluntary agreement with a commercial air
tour operator (including a new entrant commercial air tour
operator and an operator that has interim operating authority) that has applied to conduct commercial air tour operations over a national park to manage commercial air
tour operations over such national park.
‘‘(B) PARK PROTECTION.—A voluntary agreement under
this paragraph with respect to commercial air tour operations over a national park shall address the management
issues necessary to protect the resources of such park and
visitor use of such park without compromising aviation
safety or the air traffic control system and may—
‘‘(i) include provisions such as those described in
subparagraphs (B) through (E) of paragraph (3);

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93
‘‘(ii) include provisions to ensure the stability of,
and compliance with, the voluntary agreement; and
‘‘(iii) provide for fees for such operations.
‘‘(C) PUBLIC REVIEW.—The Director and the Administrator shall provide an opportunity for public review of a
proposed voluntary agreement under this paragraph and
shall consult with any Indian tribe whose tribal lands are,
or may be, flown over by a commercial air tour operator
under a voluntary agreement under this paragraph. After
such opportunity for public review and consultation, the
voluntary agreement may be implemented without further
administrative or environmental process beyond that described in this subsection.
‘‘(D) TERMINATION.—
‘‘(i) IN GENERAL.—A voluntary agreement under
this paragraph may be terminated at any time at the
discretion of—
‘‘(I) the Director, if the Director determines
that the agreement is not adequately protecting
park resources or visitor experiences; or
‘‘(II) the Administrator, if the Administrator
determines that the agreement is adversely affecting aviation safety or the national aviation system.
‘‘(ii) EFFECT OF TERMINATION.—If a voluntary
agreement with respect to a national park is terminated under this subparagraph, the operators shall
conform to the requirements for interim operating authority under subsection (c) until an air tour management plan for the park is in effect.’’.
(d) INTERIM OPERATING AUTHORITY.—Section 40128(c) is
amended—
(1) by striking paragraph (2)(I) and inserting the following:
‘‘(I) may allow for modifications of the interim operating authority without further environmental review beyond that described in this subsection, if—
‘‘(i) adequate information regarding the existing
and proposed operations of the operator under the interim operating authority is provided to the Administrator and the Director;
‘‘(ii) the Administrator determines that there would
be no adverse impact on aviation safety or the air traffic control system; and
‘‘(iii) the Director agrees with the modification,
based on the professional expertise of the Director regarding the protection of the resources, values, and visitor use and enjoyment of the park.’’; and
(2) in paragraph (3)(A) by striking ‘‘if the Administrator determines’’ and all that follows through the period at the end
and inserting ‘‘without further environmental process beyond
that described in this paragraph, if—
‘‘(i) adequate information on the proposed operations of the operator is provided to the Administrator
and the Director by the operator making the request;

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‘‘(ii) the Administrator agrees that there would be
no adverse impact on aviation safety or the air traffic
control system; and
‘‘(iii) the Director agrees, based on the Director’s
professional expertise regarding the protection of park
resources and values and visitor use and enjoyment.’’.
(e) OPERATOR REPORTS.—Section 40128 is amended—
(1) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively; and
(2) by inserting after subsection (c) the following:
‘‘(d) COMMERCIAL AIR TOUR OPERATOR REPORTS.—
‘‘(1) REPORT.—Each commercial air tour operator conducting a commercial air tour operation over a national park
under interim operating authority granted under subsection (c)
or in accordance with an air tour management plan or voluntary agreement under subsection (b) shall submit to the Administrator and the Director a report regarding the number of
commercial air tour operations over each national park that are
conducted by the operator and such other information as the
Administrator and Director may request in order to facilitate
administering the provisions of this section.
‘‘(2) REPORT SUBMISSION.—Not later than 90 days after the
date of enactment of the FAA Modernization and Reform Act of
2012, the Administrator and the Director shall jointly issue an
initial request for reports under this subsection. The reports
shall be submitted to the Administrator and the Director with
a frequency and in a format prescribed by the Administrator
and the Director.’’.

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SEC. 502. STATE BLOCK GRANT PROGRAM.
(a) GENERAL REQUIREMENTS.—Section

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

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

Section 47173(a) is amended by striking ‘‘services of consultants
in order to’’ and all that follows through the period at the end and
inserting ‘‘services of consultants—
‘‘(1) to facilitate the timely processing, review, and completion of environmental activities associated with an airport development project;
‘‘(2) to conduct special environmental studies related to an
airport project funded with Federal funds;
‘‘(3) to conduct special studies or reviews to support approved noise compatibility measures described in part 150 of
title 14, Code of Federal Regulations;
‘‘(4) to conduct special studies or reviews to support environmental mitigation in a record of decision or finding of no
significant impact by the Federal Aviation Administration; and
‘‘(5) to facilitate the timely processing, review, and completion of environmental activities associated with new or amended flight procedures, including performance-based navigation
procedures, such as required navigation performance procedures and area navigation procedures.’’.
SEC. 504. GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT PROCEDURES.

Section 47504 is amended by adding at the end the following:
‘‘(e) GRANTS FOR ASSESSMENT OF FLIGHT PROCEDURES.—
‘‘(1) IN GENERAL.—In accordance with subsection (c)(1), the
Secretary may make a grant to an airport operator to assist in
completing environmental review and assessment activities for
proposals to implement flight procedures at such airport that
have been approved as part of an airport noise compatibility
program under subsection (b).
‘‘(2) ADDITIONAL STAFF.—The Administrator may accept
funds from an airport operator, including funds provided to the
operator under paragraph (1), to hire additional staff or obtain
the services of consultants in order to facilitate the timely processing, review, and completion of environmental activities associated with proposals to implement flight procedures at such
airport that have been approved as part of an airport noise
compatibility program under subsection (b).
‘‘(3) RECEIPTS CREDITED AS OFFSETTING COLLECTIONS.—
Notwithstanding section 3302 of title 31, any funds accepted
under this section—
‘‘(A) shall be credited as offsetting collections to the account that finances the activities and services for which the
funds are accepted;
‘‘(B) shall be available for expenditure only to pay the
costs of activities and services for which the funds are accepted; and
‘‘(C) shall remain available until expended.’’.

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

Section 47504 (as amended by this Act) is further amended by
adding at the end the following:
‘‘(f) DETERMINATION OF FAIR MARKET VALUE OF RESIDENTIAL
PROPERTIES.—In approving a project to acquire residential real
property using financial assistance made available under this sec-

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tion or chapter 471, the Secretary shall ensure that the appraisal of
the property to be acquired disregards any decrease or increase in
the fair market value of the real property caused by the project for
which the property is to be acquired, or by the likelihood that the
property would be acquired for the project, other than that due to
physical deterioration within the reasonable control of the owner.’’.
SEC. 506. PROHIBITION ON OPERATING CERTAIN AIRCRAFT WEIGHING
75,000 POUNDS OR LESS NOT COMPLYING WITH STAGE 3
NOISE LEVELS.
(a) IN GENERAL.—Subchapter II of chapter 475 is amended by

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adding at the end the following:
‘‘§ 47534. Prohibition on operating certain aircraft weighing
75,000 pounds or less not complying with stage 3
noise levels
‘‘(a) PROHIBITION.—Except as otherwise provided by this section, after December 31, 2015, a person may not operate a civil subsonic jet airplane with a maximum weight of 75,000 pounds or less,
and for which an airworthiness certificate (other than an experimental certificate) has been issued, to or from an airport in the
United States unless the Secretary of Transportation finds that the
aircraft complies with stage 3 noise levels.
‘‘(b) AIRCRAFT OPERATIONS OUTSIDE 48 CONTIGUOUS STATES.—
Subsection (a) shall not apply to aircraft operated only outside the
48 contiguous States.
‘‘(c) TEMPORARY OPERATIONS.—The Secretary may allow temporary operation of an aircraft otherwise prohibited from operation
under subsection (a) to or from an airport in the contiguous United
States by granting a special flight authorization for one or more of
the following circumstances:
‘‘(1) To sell, lease, or use the aircraft outside the 48 contiguous States.
‘‘(2) To scrap the aircraft.
‘‘(3) To obtain modifications to the aircraft to meet stage 3
noise levels.
‘‘(4) To perform scheduled heavy maintenance or significant
modifications on the aircraft at a maintenance facility located
in the contiguous 48 States.
‘‘(5) To deliver the aircraft to an operator leasing the aircraft from the owner or return the aircraft to the lessor.
‘‘(6) To prepare, park, or store the aircraft in anticipation
of any of the activities described in paragraphs (1) through (5).
‘‘(7) To provide transport of persons and goods in the relief
of an emergency situation.
‘‘(8) To divert the aircraft to an alternative airport in the
48 contiguous States on account of weather, mechanical, fuel,
air traffic control, or other safety reasons while conducting a
flight in order to perform any of the activities described in
paragraphs (1) through (7).
‘‘(d) REGULATIONS.—The Secretary may prescribe such regulations or other guidance as may be necessary for the implementation
of this section.
‘‘(e) STATUTORY CONSTRUCTION.—

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97
‘‘(1) AIP GRANT ASSURANCES.—Noncompliance with subsection (a) shall not be construed as a violation of section 47107
or any regulations prescribed thereunder.
‘‘(2) PENDING APPLICATIONS.—Nothing in this section may
be construed as interfering with, nullifying, or otherwise affecting determinations made by the Federal Aviation Administration, or to be made by the Administration, with respect to applications under part 161 of title 14, Code of Federal Regulations,
that were pending on the date of enactment of this section.’’.
(b) CONFORMING AMENDMENTS.—
(1) PENALTIES.—Section 47531 is amended—
(A) in the section heading by striking ‘‘for violating
sections 47528–47530’’; and
(B) by striking ‘‘47529, or 47530’’ and inserting ‘‘47529,
47530, or 47534’’.
(2) JUDICIAL REVIEW.—Section 47532 is amended by inserting ‘‘or 47534’’ after ‘‘47528–47531’’.
(3) ANALYSIS.—The analysis for subchapter II of chapter
475 is amended—
(A) by striking the item relating to section 47531 and
inserting the following:
‘‘47531. Penalties.’’; and

(B) by adding at the end the following:
‘‘47534. Prohibition on operating certain aircraft weighing 75,000 pounds or less not
complying with stage 3 noise levels.’’.
SEC. 507. AIRCRAFT DEPARTURE QUEUE MANAGEMENT PILOT PROGRAM.
(a) IN GENERAL.—The Secretary of Transportation shall carry

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

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

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

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SEC. 509. SENSE OF CONGRESS.

It is the sense of Congress that—
(1) the European Union directive extending the European
Union’s emissions trading proposal to international civil aviation without working through the International Civil Aviation
Organization (in this section referred to as the ‘‘ICAO’’) in a
consensus-based fashion is inconsistent with the Convention on
International Civil Aviation, completed in Chicago on December
7, 1944 (TIAS 1591; commonly known as the ‘‘Chicago Convention’’), and other relevant air services agreements and antithetical to building international cooperation to address effectively
the problem of greenhouse gas emissions by aircraft engaged in
international civil aviation;
(2) the European Union and its member states should instead work with other contracting states of ICAO to develop a
consensual approach to addressing aircraft greenhouse gas
emissions through ICAO; and
(3) officials of the United States Government, and particularly the Secretary of Transportation and the Administrator of
the Federal Aviation Administration, should use all political,
diplomatic, and legal tools at the disposal of the United States
to ensure that the European Union’s emissions trading scheme
is not applied to aircraft registered by the United States or the
operators of those aircraft, including the mandates that United
States carriers provide emissions data to and purchase emissions allowances from or surrender emissions allowances to the
European Union Member States.
SEC. 510. AVIATION NOISE COMPLAINTS.

Not later than 90 days after the date of enactment of this Act,
each owner or operator of a large hub airport (as defined in section
40102(a) of title 49, United States Code) shall publish on an Internet Web site of the airport a telephone number to receive aviation
noise complaints related to the airport.
SEC. 511. PILOT PROGRAM FOR ZERO-EMISSION AIRPORT VEHICLES.
(a) IN GENERAL.—Chapter 471 is amended by inserting after

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section 47136 the following:
‘‘§ 47136a. Zero-emission airport vehicles and infrastructure
‘‘(a) IN GENERAL.—The Secretary of Transportation may establish a pilot program under which the sponsor of a public-use airport
may use funds made available under section 47117 or section 48103
for use at such airport to carry out activities associated with the acquisition and operation of zero-emission vehicles (as defined in section 88.102–94 of title 40, Code of Federal Regulations), including
the construction or modification of infrastructure to facilitate the delivery of fuel and services necessary for the use of such vehicles.
‘‘(b) LOCATION IN AIR QUALITY NONATTAINMENT AREAS.—
‘‘(1) IN GENERAL.—A public-use airport may be eligible for
participation in the program only if the airport is located in a
nonattainment area (as defined in section 171 of the Clean Air
Act (42 U.S.C. 7501)).
‘‘(2) SHORTAGE OF APPLICANTS.—If the Secretary receives an
insufficient number of applications from public-use airports located in such areas, the Secretary may permit public-use air-

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99
ports that are not located in such areas to participate in the
program.
‘‘(c) SELECTION CRITERIA.—In selecting from among applicants
for participation in the program, the Secretary shall give priority
consideration to applicants that will achieve the greatest air quality
benefits measured by the amount of emissions reduced per dollar of
funds expended under the program.
‘‘(d) FEDERAL SHARE.—Notwithstanding any other provision of
this subchapter, the Federal share of the costs of a project carried
out under the program shall be 50 percent.
‘‘(e) TECHNICAL ASSISTANCE.—
‘‘(1) IN GENERAL.—The sponsor of a public-use airport carrying out activities funded under the program may not use
more than 10 percent of the amounts made available under the
program in any fiscal year for technical assistance in carrying
out such activities.
‘‘(2) USE OF UNIVERSITY TRANSPORTATION CENTER.—Participants in the program may use a university transportation
center receiving grants under section 5506 in the region of the
airport to receive the technical assistance described in paragraph (1).
‘‘(f) MATERIALS IDENTIFYING BEST PRACTICES.—The Secretary
may develop and make available materials identifying best practices
for carrying out activities funded under the program based on
projects carried out under section 47136 and other sources.’’.
(b) REPORT ON EFFECTIVENESS OF PROGRAM.—Not later than
18 months after the date of enactment of this Act, the Secretary of
Transportation shall submit to the Committee on Science, Space,
and Technology and the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate a report containing—
(1) an evaluation of the effectiveness of the program established by section 47136a of title 49, United States Code (as
added by this section);
(2) the performance measures used to measure such effectiveness, such as the goals for the projects implemented and the
amount of emissions reduction achieved through these projects;
(3) an assessment of the sufficiency of the data collected
during the program to make a decision on whether or not to implement the program;
(4) an identification of all public-use airports that expressed an interest in participating in the program; and
(5) a description of the mechanisms used by the Secretary
to ensure that the information and expertise gained by participants in the program is transferred among the participants and
to other interested parties, including other public-use airports.
(c) CONFORMING AMENDMENT.—The analysis for such chapter is
amended by inserting after the item relating to section 47136 the
following:
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‘‘47136a. Zero-emission airport vehicles and infrastructure.’’.
(d) TECHNICAL AMENDMENT.—Section 47136(f)(2)

is amended—
(1) in the paragraph heading by striking ‘‘ELIGIBLE CONSORTIUM’’ and inserting ‘‘UNIVERSITY TRANSPORTATION CENTER’’; and

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(2) by striking ‘‘an eligible consortium’’ and inserting ‘‘a
university transportation center’’.
SEC. 512. INCREASING THE ENERGY EFFICIENCY OF AIRPORT POWER
SOURCES.
(a) IN GENERAL.—Chapter 471 is amended by inserting after

section 47140 the following:
‘‘§ 47140a. Increasing the energy efficiency of airport power
sources
‘‘(a) IN GENERAL.—The Secretary of Transportation shall establish a program under which the Secretary shall encourage the sponsor of each public-use airport to assess the airport’s energy requirements, including heating and cooling, base load, back-up power,
and power for on-road airport vehicles and ground support equipment, in order to identify opportunities to increase energy efficiency
at the airport.
‘‘(b) GRANTS.—
‘‘(1) IN GENERAL.—The Secretary may make grants from
amounts made available under section 48103 to assist airport
sponsors that have completed the assessment described in subsection (a) to acquire or construct equipment, including hydrogen equipment and related infrastructure, that will increase energy efficiency at the airport.
‘‘(2) APPLICATION.—To be eligible for a grant under paragraph (1), the sponsor of a public-use airport shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.’’.
(b) CONFORMING AMENDMENT.—The analysis for such chapter
is amended by inserting after the item relating to section 47140 the
following:
‘‘47140a. Increasing the energy efficiency of airport power sources.’’.

TITLE VI—FAA EMPLOYEES AND ORGANIZATION

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SEC. 601. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

Section 40122(a) is amended—
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by striking paragraph (2) and inserting the following:
‘‘(2) DISPUTE RESOLUTION.—
‘‘(A) MEDIATION.—If the Administrator does not reach
an agreement under paragraph (1) or the provisions referred to in subsection (g)(2)(C) with the exclusive bargaining representative of the employees, the Administrator
and the bargaining representative—
‘‘(i) shall use the services of the Federal Mediation
and Conciliation Service to attempt to reach such
agreement in accordance with part 1425 of title 29,
Code of Federal Regulations (as in effect on the date of
enactment of the FAA Modernization and Reform Act
of 2012); or
‘‘(ii) may by mutual agreement adopt alternative
procedures for the resolution of disputes or impasses

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101
arising in the negotiation of the collective-bargaining
agreement.
‘‘(B) MID-TERM BARGAINING.—If the services of the Federal Mediation and Conciliation Service under subparagraph (A)(i) do not lead to the resolution of issues in controversy arising from the negotiation of a mid-term collective-bargaining agreement, the Federal Service Impasses
Panel shall assist the parties in resolving the impasse in
accordance with section 7119 of title 5.
‘‘(C) BINDING ARBITRATION FOR TERM BARGAINING.—
‘‘(i) ASSISTANCE FROM FEDERAL SERVICE IMPASSES
PANEL.—If the services of the Federal Mediation and
Conciliation Service under subparagraph (A)(i) do not
lead to the resolution of issues in controversy arising
from the negotiation of a term collective-bargaining
agreement, the Administrator and the exclusive bargaining representative of the employees (in this subparagraph referred to as the ‘parties’) shall submit
their issues in controversy to the Federal Service Impasses Panel. The Panel shall assist the parties in resolving the impasse by asserting jurisdiction and ordering binding arbitration by a private arbitration
board consisting of 3 members.
‘‘(ii) APPOINTMENT OF ARBITRATION BOARD.—The
Executive Director of the Panel shall provide for the
appointment of the 3 members of a private arbitration
board under clause (i) by requesting the Director of the
Federal Mediation and Conciliation Service to prepare
a list of not less than 15 names of arbitrators with
Federal sector experience and by providing the list to
the parties. Not later than 10 days after receiving the
list, the parties shall each select one person from the
list. The 2 arbitrators selected by the parties shall then
select a third person from the list not later than 7 days
after being selected. If either of the parties fails to select a person or if the 2 arbitrators are unable to agree
on the third person in 7 days, the parties shall make
the selection by alternately striking names on the list
until one arbitrator remains.
‘‘(iii) FRAMING ISSUES IN CONTROVERSY.—If the
parties do not agree on the framing of the issues to be
submitted for arbitration, the arbitration board shall
frame the issues.
‘‘(iv) HEARINGS.—The arbitration board shall give
the parties a full and fair hearing, including an opportunity to present evidence in support of their claims
and an opportunity to present their case in person, by
counsel, or by other representative as they may elect.
‘‘(v) DECISIONS.—The arbitration board shall
render its decision within 90 days after the date of its
appointment. Decisions of the arbitration board shall
be conclusive and binding upon the parties.
‘‘(vi) MATTERS FOR CONSIDERATION.—The arbitration board shall take into consideration such factors
as—

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‘‘(I) the effect of its arbitration decisions on the
Federal Aviation Administration’s ability to attract
and retain a qualified workforce;
‘‘(II) the effect of its arbitration decisions on
the Federal Aviation Administration’s budget; and
‘‘(III) any other factors whose consideration
would assist the board in fashioning a fair and equitable award.
‘‘(vii) COSTS.—The parties shall share costs of the
arbitration equally.
‘‘(3) RATIFICATION OF AGREEMENTS.—Upon reaching a voluntary agreement or at the conclusion of the binding arbitration under paragraph (2)(C), the final agreement, except for
those matters decided by an arbitration board, shall be subject
to ratification by the exclusive bargaining representative of the
employees, if so requested by the bargaining representative, and
the final agreement shall be subject to approval by the head of
the agency in accordance with the provisions referred to in subsection (g)(2)(C).’’.

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SEC. 602. PRESIDENTIAL RANK AWARD PROGRAM.

Section 40122(g)(2) is amended—
(1) in subparagraph (G) by striking ‘‘and’’ after the semicolon;
(2) in subparagraph (H) by striking ‘‘Board.’’ and inserting
‘‘Board; and’’; and
(3) by adding at the end the following:
‘‘(I) subsections (b), (c), and (d) of section 4507 (relating
to Meritorious Executive or Distinguished Executive rank
awards) and subsections (b) and (c) of section 4507a (relating to Meritorious Senior Professional or Distinguished
Senior Professional rank awards), except that—
‘‘(i) for purposes of applying such provisions to the
personnel management system—
‘‘(I) the term ‘agency’ means the Department of
Transportation;
‘‘(II) the term ‘senior executive’ means a Federal Aviation Administration executive;
‘‘(III) the term ‘career appointee’ means a Federal Aviation Administration career executive; and
‘‘(IV) the term ‘senior career employee’ means a
Federal Aviation Administration career senior professional;
‘‘(ii) receipt by a career appointee or a senior career
employee of the rank of Meritorious Executive or Meritorious Senior Professional entitles the individual to a
lump-sum payment of an amount equal to 20 percent
of annual basic pay, which shall be in addition to the
basic pay paid under the Federal Aviation Administration Executive Compensation Plan; and
‘‘(iii) receipt by a career appointee or a senior career employee of the rank of Distinguished Executive or
Distinguished Senior Professional entitles the individual to a lump-sum payment of an amount equal to
35 percent of annual basic pay, which shall be in addi-

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tion to the basic pay paid under the Federal Aviation
Administration Executive Compensation Plan.’’.
SEC. 603. COLLEGIATE TRAINING INITIATIVE STUDY.
(a) STUDY.—The Comptroller General of the United

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

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SEC. 604. FRONTLINE MANAGER STAFFING.
(a) STUDY.—Not later than 45 days after

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

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Representatives a report on the results of the study and a description of any determinations submitted to the Chief Operating Officer
under subsection (d).
(f) DEFINITION.—In this section, the term ‘‘frontline manager’’
means first-level, operational supervisors and managers who work
in safety-related operational areas of the Administration.

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SEC. 605. FAA TECHNICAL TRAINING AND STAFFING.
(a) STUDY.—
(1) IN GENERAL.—The Administrator of the

Federal Aviation Administration shall conduct a study to assess the adequacy of the Administrator’s technical training strategy and improvement plan for airway transportation systems specialists
(in this section referred to as ‘‘FAA systems specialists’’).
(2) CONTENTS.—The study shall include—
(A) a review of the current technical training strategy
and improvement plan for FAA systems specialists;
(B) recommendations to improve the technical training
strategy and improvement plan needed by FAA systems specialists to be proficient in the maintenance of the latest
technologies;
(C) a description of actions that the Administration has
undertaken to ensure that FAA systems specialists receive
up-to-date training on the latest technologies; and
(D) a recommendation regarding the most cost-effective
approach to provide training to FAA systems specialists.
(3) REPORT.—Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to the Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the results of the
study.
(b) WORKLOAD OF SYSTEMS SPECIALISTS.—
(1) STUDY BY NATIONAL ACADEMY OF SCIENCES.—Not later
than 90 days after the date of enactment of this Act, the Administrator of the Federal Aviation Administration shall make appropriate arrangements for the National Academy of Sciences to
conduct a study of the assumptions and methods used by the
Federal Aviation Administration to estimate staffing needs for
FAA systems specialists to ensure proper maintenance and certification of the national airspace system.
(2) CONSULTATION.—In conducting the study, the National
Academy of Sciences shall—
(A) consult with the exclusive bargaining representative
certified under section 7111 of title 5, United States Code;
and
(B) include recommendations for objective staffing
standards that maintain the safety of the national airspace
system.
(3) REPORT.—Not later than 1 year after the initiation of
the arrangements under paragraph (1), the National Academy
of Sciences shall submit to Congress a report on the results of
the study.

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SEC. 606. SAFETY CRITICAL STAFFING.
(a) IN GENERAL.—Not later than

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

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SEC. 607. AIR TRAFFIC CONTROL SPECIALIST QUALIFICATION TRAINING.

Section 44506 is amended—
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
‘‘(d) AIR TRAFFIC CONTROL SPECIALIST QUALIFICATION TRAINING.—
‘‘(1) APPOINTMENT OF AIR TRAFFIC CONTROL SPECIALISTS.—
The Administrator is authorized to appoint a qualified air traffic control specialist candidate for placement in an airport traffic control facility if the candidate has—
‘‘(A) received a control tower operator certification (referred to in this subsection as a ‘CTO’ certificate); and
‘‘(B) satisfied all other applicable qualification requirements for an air traffic control specialist position, including successful completion of orientation training at the Federal Aviation Administration Academy.
‘‘(2) COMPENSATION AND BENEFITS.—An individual appointed under paragraph (1) shall receive the same compensation and benefits, and be treated in the same manner as, any
other individual appointed as a developmental air traffic controller.
‘‘(3) REPORT.—Not later than 2 years after the date of enactment of the FAA Modernization and Reform Act of 2012, the
Administrator shall submit to Congress a report that evaluates
the effectiveness of the air traffic control specialist qualification
training provided pursuant to this section, including the graduation rates of candidates who received a CTO certificate and
are working in airport traffic control facilities.
‘‘(4) ADDITIONAL APPOINTMENTS.—If the Administrator determines that air traffic control specialists appointed pursuant
to this subsection are more successful in carrying out the duties
of an air traffic controller than air traffic control specialists
hired from the general public without any such certification, the
Administrator shall increase, to the maximum extent practicable, the number of appointments of candidates who possess
such certification.
‘‘(5) REIMBURSEMENT FOR TRAVEL EXPENSES ASSOCIATED
WITH CERTIFICATIONS.—

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‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
Administrator may accept reimbursement from an educational entity that provides training to an air traffic control specialist candidate to cover reasonable travel expenses
of the Administrator associated with issuing certifications
to such candidates.
‘‘(B) TREATMENT OF REIMBURSEMENTS.—Notwithstanding section 3302 of title 31, any reimbursement authorized to be collected under subparagraph (A) shall—
‘‘(i) be credited as offsetting collections to the account that finances the activities and services for which
the reimbursement is accepted;
‘‘(ii) be available for expenditure only to pay the
costs of activities and services for which the reimbursement is accepted, including all costs associated with
collecting such reimbursement; and
‘‘(iii) remain available until expended.’’.
SEC. 608. FAA AIR TRAFFIC CONTROLLER STAFFING.
(a) STUDY BY NATIONAL ACADEMY OF SCIENCES.—Not

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

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SEC. 609. AIR TRAFFIC CONTROLLER TRAINING AND SCHEDULING.
(a) TRAINING STRATEGY AND IMPROVEMENT PLAN.—The Admin-

istrator of the Federal Aviation Administration shall conduct a
study to assess the adequacy of training programs for air traffic
controllers, including the Administrator’s technical training strategy
and improvement plan for air traffic controllers.

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107
(1) CONTENTS.—The study shall include—
(A) a review of the current training system for air traffic controllers, including the technical training strategy and
improvement plan;
(B) an analysis of the competencies required of air traffic controllers for successful performance in the current and
future projected air traffic control environment;
(C) an analysis of the competencies projected to be required of air traffic controllers as the Federal Aviation Administration transitions to the Next Generation Air Transportation System;
(D) an analysis of various training approaches available to satisfy the air traffic controller competencies identified under subparagraphs (B) and (C);
(E) recommendations to improve the current training
system for air traffic controllers, including the technical
training strategy and improvement plan; and
(F) the most cost-effective approach to provide training
to air traffic controllers.
(2) REPORT.—Not later than 270 days after the date of enactment of this Act, the Administrator shall submit to the Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the results of the
study.
(b) FACILITY TRAINING PROGRAM.—Not later than 1 year after
the date of enactment of this Act, the Administrator shall conduct
a comprehensive review and evaluation of its Academy and facility
training efforts. The Administrator shall—
(1) clarify responsibility for oversight and direction of the
Academy’s facility training program at the national level;
(2) communicate information concerning that responsibility
to facility managers; and
(3) establish standards to identify the number of developmental air traffic controllers that can be accommodated at each
facility, based on—
(A) the number of available on-the-job training instructors;
(B) available classroom space;
(C) the number of available simulators;
(D) training requirements; and
(E) the number of recently placed new personnel already in training.
(c) AIR TRAFFIC CONTROLLER SCHEDULING.—Not later than 60
days after the date of enactment of this Act, the Inspector General
of the Department of Transportation shall conduct an assessment of
the Federal Aviation Administration’s air traffic controller scheduling practices.
(1) CONTENTS.—The assessment shall include, at a minimum—
(A) an analysis of how air traffic controller schedules
are determined;
(B) an evaluation of how safety is taken into consideration when schedules are being developed and adopted;

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(C) an evaluation of scheduling practices that are cost
effective to the Government;
(D) an examination of how scheduling practices impact
air traffic controller performance; and
(E) any recommendations the Inspector General may
have related to air traffic controller scheduling practices.
(2) REPORT.—Not later than 120 days after the date of enactment of this Act, the Inspector General shall submit to the
Committee on Transportation and Infrastructure of the House
of Representatives and the Committee on Commerce, Science,
and Transportation of the Senate a report on the results of the
assessment conducted under this subsection.

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SEC. 610. FAA FACILITY CONDITIONS.
(a) STUDY.—The Comptroller General

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

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ture of the House of Representatives a report on results of the study,
including the recommendations under subsection (c).
SEC. 611. TECHNICAL CORRECTION.

Section 40122(g)(3) is amended by adding at the end the following: ‘‘Notwithstanding any other provision of law, retroactive to
April 1, 1996, the Board shall have the same remedial authority
over such employee appeals that it had as of March 31, 1996.’’.
TITLE VII—AVIATION INSURANCE
SEC. 701. GENERAL AUTHORITY.

Section 44302(f)(1) is amended by striking ‘‘shall extend
through’’ and all that follows through ‘‘the termination date’’ and
inserting ‘‘shall extend through September 30, 2013, and may extend through December 31, 2013, the termination date’’.
SEC. 702. EXTENSION OF AUTHORITY TO LIMIT THIRD-PARTY LIABILITY OF AIR CARRIERS ARISING OUT OF ACTS OF TERRORISM.

The first sentence of section 44303(b) is amended by striking
‘‘ending on’’ and all that follows through ‘‘the Secretary may certify’’
and inserting ‘‘ending on December 31, 2013, the Secretary may certify’’.
SEC. 703. CLARIFICATION OF REINSURANCE AUTHORITY.

The second sentence of section 44304 is amended by striking
‘‘the carrier’’ and inserting ‘‘any insurance carrier’’.
SEC. 704. USE OF INDEPENDENT CLAIMS ADJUSTERS.

The second sentence of section 44308(c)(1) is amended by striking ‘‘agent’’ and inserting ‘‘agent, or a claims adjuster who is independent of the underwriting agent,’’.
TITLE VIII—MISCELLANEOUS
SEC. 801. DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST
OF NATIONAL SECURITY.

Section 40119(b) is amended by adding at the end the following:
‘‘(4) Section 552a of title 5 shall not apply to disclosures that
the Administrator may make from the systems of records of the Administration to any Federal law enforcement, intelligence, protective
service, immigration, or national security official in order to assist
the official receiving the information in the performance of official
duties.’’.
SEC. 802. FAA AUTHORITY TO CONDUCT CRIMINAL HISTORY RECORD
CHECKS.
(a) IN GENERAL.—Chapter 401 is amended by adding at the

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end the following:
‘‘§ 40130. FAA authority to conduct criminal history record
checks
‘‘(a) CRIMINAL HISTORY BACKGROUND CHECKS.—
‘‘(1) ACCESS TO INFORMATION.—The Administrator of the
Federal Aviation Administration, for certification purposes of
the Administration only, is authorized—
‘‘(A) to conduct, in accordance with the established request process, a criminal history background check of an

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airman in the criminal repositories of the Federal Bureau
of Investigation and States by submitting positive identification of the airman to a fingerprint-based repository in
compliance with section 217 of the National Crime Prevention and Privacy Compact Act of 1998 (42 U.S.C. 14616);
and
‘‘(B) to receive relevant criminal history record information regarding the airman checked.
‘‘(2) RELEASE OF INFORMATION.—In accessing a repository
referred to in paragraph (1), the Administrator shall be subject
to the conditions and procedures established by the Department
of Justice or the State, as appropriate, for other governmental
agencies conducting background checks for noncriminal justice
purposes.
‘‘(3) LIMITATION.—The Administrator may not use the authority under paragraph (1) to conduct criminal investigations.
‘‘(4) REIMBURSEMENT.—The Administrator may collect reimbursement to process the fingerprint-based checks under this
subsection, to be used for expenses incurred, including Federal
Bureau of Investigation fees, in providing these services.
‘‘(b) DESIGNATED EMPLOYEES.—The Administrator shall designate, by order, employees of the Administration who may carry
out the authority described in subsection (a).’’.
(b) CLERICAL AMENDMENT.—The analysis for chapter 401 is
amended by adding at the end the following:
‘‘40130. FAA authority to conduct criminal history record checks.’’.

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SEC. 803. CIVIL PENALTIES TECHNICAL AMENDMENTS.

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

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(B) by inserting after ‘‘44909)’’ the following: ‘‘, or chapter 451’’.

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SEC. 804. CONSOLIDATION AND REALIGNMENT OF FAA SERVICES AND
FACILITIES.
(a) NATIONAL FACILITIES REALIGNMENT AND CONSOLIDATION
REPORT.—
(1) IN GENERAL.—The Administrator of the Federal Avia-

tion Administration shall develop a report, to be known as the
National Facilities Realignment and Consolidation Report, in
accordance with the requirements of this subsection.
(2) PURPOSE.—The purpose of the report shall be—
(A) to support the transition to the Next Generation Air
Transportation System; and
(B) to reduce capital, operating, maintenance, and administrative costs of the FAA where such cost reductions
can be implemented without adversely affecting safety.
(3) CONTENTS.—The report shall include—
(A) recommendations of the Administrator on realignment and consolidation of services and facilities (including
regional offices) of the FAA; and
(B) for each of the recommendations, a description of—
(i) the Administrator’s justification;
(ii) the projected costs and savings; and
(iii) the proposed timing for implementation.
(4) INPUT.—The report shall be developed by the Administrator (or the Administrator’s designee)—
(A) in coordination with the Chief NextGen Officer and
the Chief Operating Officer of the Air Traffic Organization
of the FAA; and
(B) with the participation of—
(i) representatives of labor organizations representing operations and maintenance employees of the
air traffic control system; and
(ii) industry stakeholders.
(5) SUBMISSION TO CONGRESS.—Not later than 120 days
after the date of enactment of this Act, the Administrator shall
submit the report to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee
on Commerce, Science, and Transportation of the Senate.
(6) PUBLIC NOTICE AND COMMENT.—The Administrator
shall publish the report in the Federal Register and allow 45
days for the submission of public comments.
(b) REPORT TO CONGRESS CONTAINING RECOMMENDATIONS OF
ADMINISTRATOR.—Not later than 60 days after the last day of the
period for public comment under subsection (a)(6), the Administrator shall submit to the committees specified in subsection (a)(5)—
(1) a report containing the recommendations of the Administrator on realignment and consolidation of services and facilities (including regional offices) of the FAA; and
(2) copies of any public comments received by the Administrator under subsection (a)(6).
(c) REALIGNMENT AND CONSOLIDATION OF FAA SERVICES AND
FACILITIES.—Except as provided in subsection (d), the Administrator shall realign and consolidate the services and facilities of the

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FAA in accordance with the recommendations included in the report
submitted under subsection (b).
(d) CONGRESSIONAL DISAPPROVAL.—
(1) IN GENERAL.—The Administrator may not carry out a
recommendation for realignment or consolidation of services or
facilities of the FAA that is included in the report submitted
under subsection (b) if a joint resolution of disapproval is enacted disapproving such recommendation before the earlier of—
(A) the last day of the 30-day period beginning on the
date of submission of the report; or
(B) the adjournment of Congress sine die for the session during which the report is transmitted.
(2) COMPUTATION OF 30-DAY PERIOD.—For purposes of paragraph (1)(A), the days on which either house of Congress is not
in session because of an adjournment of more than 3 days to
a day certain shall be excluded in computation of the 30-day period.
(e) DEFINITIONS.—In this section, the following definitions
apply:
(1) FAA.—The term ‘‘FAA’’ means the Federal Aviation Administration.
(2) REALIGNMENT; CONSOLIDATION.—
(A) IN GENERAL.—The terms ‘‘realignment’’ and ‘‘consolidation’’ include any action that—
(i) relocates functions, services, or personnel positions;
(ii) discontinues or severs existing facility functions
or services; or
(iii) combines the results described in clauses (i)
and (ii).
(B) EXCLUSION.—The terms do not include a reduction
in personnel resulting from workload adjustments.
SEC. 805. LIMITING ACCESS TO FLIGHT DECKS OF ALL-CARGO AIRCRAFT.
(a) STUDY.—Not later than 180 days after the date of enactment

of this Act, the Administrator of the Federal Aviation Administration, in consultation with appropriate air carriers, aircraft manufacturers, and air carrier labor representatives, shall conduct a
study to assess the feasibility of developing a physical means, or a
combination of physical and procedural means, to prohibit individuals other than authorized flight crewmembers from accessing the
flight deck of an all-cargo aircraft.
(b) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Administrator shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives
and the Committee on Commerce, Science, and Transportation of
the Senate a report on the results of the study.

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SEC. 806. CONSOLIDATION OR ELIMINATION OF OBSOLETE, REDUNDANT, OR OTHERWISE UNNECESSARY REPORTS; USE OF
ELECTRONIC MEDIA FORMAT.
(a) CONSOLIDATION OR ELIMINATION OF REPORTS.—Not later

than 2 years after the date of enactment of this Act, and every 2
years thereafter, the Administrator of the Federal Aviation Administration shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Transportation

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and Infrastructure of the House of Representatives a report containing—
(1) a list of obsolete, redundant, or otherwise unnecessary
reports the Administration is required by law to submit to Congress or publish that the Administrator recommends eliminating or consolidating with other reports; and
(2) an estimate of the cost savings that would result from
the elimination or consolidation of those reports.
(b) USE OF ELECTRONIC MEDIA FOR REPORTS.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, the Administration—
(A) may not publish any report required or authorized
by law in a printed format; and
(B) shall publish any such report by posting it on the
Administration’s Internet Web site in an easily accessible
and downloadable electronic format.
(2) EXCEPTION.—Paragraph (1) does not apply to any report
with respect to which the Administrator determines that—
(A) its publication in a printed format is essential to
the mission of the Administration; or
(B) its publication in accordance with the requirements
of paragraph (1) would disclose matter—
(i) described in section 552(b) of title 5, United
States Code; or
(ii) the disclosure of which would have an adverse
impact on aviation safety or security, as determined by
the Administrator.
SEC. 807. PROHIBITION ON USE OF CERTAIN FUNDS.

The Secretary of Transportation may not use any funds made
available pursuant to this Act (including any amendment made by
this Act) to name, rename, designate, or redesignate any project or
program authorized by this Act (including any amendment made by
this Act) for an individual then serving in Congress as a Member,
Delegate, Resident Commissioner, or Senator.

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SEC. 808. STUDY ON AVIATION FUEL PRICES.
(a) IN GENERAL.—Not later than 180 days

after the date of enactment of this Act, the Comptroller General of the United States
shall conduct a study and report to Congress on the impact of increases in aviation fuel prices on the Airport and Airway Trust
Fund and the aviation industry in general.
(b) CONTENTS.—The study shall include an assessment of the
impact of increases in aviation fuel prices on—
(1) general aviation;
(2) commercial passenger aviation;
(3) piston aircraft purchase and use;
(4) the aviation services industry, including repair and
maintenance services;
(5) aviation manufacturing;
(6) aviation exports; and
(7) the use of small airport installations.
(c) ASSUMPTIONS ABOUT AVIATION FUEL PRICES.—In conducting the study required by subsection (a), the Comptroller General shall use the average aviation fuel price for fiscal year 2010 as
a baseline and measure the impact of increases in aviation fuel

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prices that range from 5 percent to 200 percent over the 2010 baseline.
SEC. 809. WIND TURBINE LIGHTING.
(a) STUDY.—The Administrator

of the Federal Aviation Administration shall conduct a study on wind turbine lighting systems.
(b) CONTENTS.—In conducting the study, the Administrator
shall examine the following:
(1) The aviation safety issues associated with alternative
lighting strategies, technologies, and regulations.
(2) The feasibility of implementing alternative lighting
strategies or technologies to improve aviation safety.
(3) Any other issue relating to wind turbine lighting.
(c) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Administrator shall submit to Congress a report on
the results of the study, including information and recommendations concerning the issues examined under subsection (b).
SEC. 810. AIR-RAIL CODE SHARING STUDY.
(a) CODE SHARE STUDY.—Not later than

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

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SEC. 811. D.C. METROPOLITAN AREA SPECIAL FLIGHT RULES AREA.
(a) SUBMISSION OF PLAN TO CONGRESS.—Not later than 180

days after the date of enactment of this Act, the Administrator of
the Federal Aviation Administration, in consultation with the Secretary of Homeland Security and the Secretary of Defense, shall
submit to the Committee on Transportation and Infrastructure and
the Committee on Homeland Security of the House of Representatives and the Committee on Commerce, Science, and Transportation

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of the Senate a plan for the D.C. Metropolitan Area Special Flight
Rules Area.
(b) CONTENTS OF PLAN.—The plan shall outline specific
changes to the D.C. Metropolitan Area Special Flight Rules Area
that will decrease operational impacts and improve general aviation
access to airports in the National Capital Region that are currently
impacted by the zone.
SEC. 812. FAA REVIEW AND REFORM.
(a) AGENCY REVIEW.—Not later

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

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SEC. 813. USE OF MINERAL REVENUE AT CERTAIN AIRPORTS.
(a) IN GENERAL.—Notwithstanding any other provision

of law,
the Administrator of the Federal Aviation Administration may declare certain revenue derived from or generated by mineral extraction, production, lease, or other means at a general aviation airport
to be revenue greater than the amount needed to carry out the 5year projected maintenance needs of the airport in order to comply
with the applicable design and safety standards of the Administration.
(b) USE OF REVENUE.—An airport sponsor that is in compliance
with the conditions under subsection (c) may allocate revenue identified by the Administrator under subsection (a) for Federal, State,
or local transportation infrastructure projects carried out by the air-

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port sponsor or by a governing body within the geographical limits
of the airport sponsor’s jurisdiction.
(c) CONDITIONS.—An airport sponsor may not allocate revenue
identified by the Administrator under subsection (a) unless the airport sponsor—
(1) enters into a written agreement with the Administrator
that sets forth a 5-year capital improvement program for the
airport, which—
(A) includes the projected costs for the operation, maintenance, and capacity needs of the airport in order to comply with applicable design and safety standards of the Administration; and
(B) appropriately adjusts such costs to account for inflation;
(2) agrees in writing—
(A) to waive all rights to receive entitlement funds or
discretionary funds to be used at the airport under section
47114 or 47115 of title 49, United States Code, during the
5-year period of the capital improvement plan described in
paragraph (1);
(B) to perpetually comply with sections 47107(b) and
47133 of such title, unless granted specific exceptions by the
Administrator in accordance with this section; and
(C) to operate the airport as a public-use airport, unless the Administrator specifically grants a request to allow
the airport to close; and
(3) complies with all grant assurance obligations in effect
as of the date of the enactment of this Act during the 20-year
period beginning on the date of enactment of this Act.
(d) COMPLETION OF DETERMINATION.—Not later than 90 days
after receiving an airport sponsor’s application and requisite supporting documentation to declare that certain mineral revenue is not
needed to carry out the 5-year capital improvement program at such
airport, the Administrator shall determine whether the airport sponsor’s request should be granted. The Administrator may not unreasonably deny an application under this subsection.
(e) RULEMAKING.—Not later than 90 days after the date of enactment of this Act, the Administrator shall promulgate regulations
to carry out this section.
(f) GENERAL AVIATION AIRPORT DEFINED.—In this section, the
term ‘‘general aviation airport’’ has the meaning given that term in
section 47102 of title 49, United States Code, as amended by this
Act.

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SEC. 814. CONTRACTING.

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

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SEC. 815. FLOOD PLANNING.
(a) STUDY.—The Administrator

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

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SEC. 816. HISTORICAL AIRCRAFT DOCUMENTS.
(a) PRESERVATION OF DOCUMENTS.—
(1) IN GENERAL.—The Administrator

of the Federal Aviation Administration shall take such actions as the Administrator determines necessary to preserve original aircraft type
certificate engineering and technical data in the possession of
the Federal Aviation Administration related to—
(A) approved aircraft type certificate numbers ATC 1
through ATC 713; and
(B) Group-2 approved aircraft type certificate numbers
2–1 through 2–544.
(2) REVISION OF ORDER.—Not later than 3 years after the
date of enactment of this Act, the Administrator shall revise
FAA Order 1350.15C, Item Number 8110. Such revision shall
prohibit the destruction of the historical aircraft documents
identified in paragraph (1).
(3) CONSULTATION.—The Administrator may carry out
paragraph (1) in consultation with the Archivist of the United
States and the Administrator of General Services.
(b) AVAILABILITY OF DOCUMENTS.—
(1) FREEDOM OF INFORMATION ACT REQUESTS.—The Administrator shall make the documents to be preserved under subsection (a)(1) available to a person—
(A) upon receipt of a request made by the person pursuant to section 552 of title 5, United States Code; and
(B) subject to a prohibition on use of the documents for
commercial purposes.
(2) TRADE SECRETS, COMMERCIAL, AND FINANCIAL INFORMATION.—Section 552(b)(4) of such title shall not apply to requests
for documents to be made available pursuant to paragraph (1).
(c) HOLDER OF TYPE CERTIFICATE.—
(1) RIGHTS OF HOLDER.—Nothing in this section shall affect
the rights of a holder or owner of a type certificate identified
in subsection (a)(1), nor require the holder or owner to provide,
surrender, or preserve any original or duplicate engineering or

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technical data to or for the Federal Aviation Administration, a
person, or the public.
(2) LIABILITY.—There shall be no liability on the part of,
and no cause of action of any nature shall arise against, a holder of a type certificate, its authorized representative, its agents,
or its employees, or any firm, person, corporation, or insurer related to the type certificate data and documents identified in
subsection (a)(1).
(3) AIRWORTHINESS.—Notwithstanding any other provision
of law, the holder of a type certificate identified in subsection
(a)(1) shall only be responsible for Federal Aviation Administration regulation requirements related to type certificate data
and documents identified in subsection (a)(1) for aircraft having a standard airworthiness certificate issued prior to the date
the documents are released to a person by the Federal Aviation
Administration under subsection (b)(1).
SEC. 817. RELEASE FROM RESTRICTIONS.
(a) IN GENERAL.—Subject to subsection

(b), the Secretary of
Transportation is authorized to grant to an airport, city, or county
a release from any of the terms, conditions, reservations, or restrictions contained in a deed under which the United States conveyed
to the airport, city, or county an interest in real property for airport
purposes pursuant to section 16 of the Federal Airport Act (60 Stat.
179) or section 23 of the Airport and Airway Development Act of
1970 (84 Stat. 232).
(b) CONDITION.—Any release granted by the Secretary pursuant
to subsection (a) shall be subject to the following conditions:
(1) The applicable airport, city, or county shall agree that
in conveying any interest in the real property which the United
States conveyed to the airport, city, or county, the airport, city,
or county will receive consideration for such interest that is
equal to its fair market value.
(2) Any consideration received by the airport, city, or county
under paragraph (1) shall be used exclusively for the development, improvement, operation, or maintenance of a public airport by the airport, city, or county.
(3) Any other conditions required by the Secretary.
SEC. 818. SENSE OF CONGRESS.

It is the sense of Congress that Los Angeles World Airports, the
operator of Los Angeles International Airport (LAX)—
(1) should consult on a regular basis with representatives
of the community surrounding the airport regarding—
(A) the ongoing operations of LAX; and
(B) plans to expand, modify, or realign LAX facilities;
and
(2) should include in such consultations any organization,
the membership of which includes at least 100 individuals who
reside within 10 miles of the airport, that notifies Los Angeles
World Airports of its desire to be included in such consultations.
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SEC. 819. HUMAN INTERVENTION MOTIVATION STUDY.

Not later than 180 days after the date of enactment of this Act,
the Administrator of the Federal Aviation Administration shall develop a Human Intervention Motivation Study program for cabin

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crew members employed by commercial air carriers in the United
States.
SEC. 820. STUDY OF AERONAUTICAL MOBILE TELEMETRY.

Not later than 180 days after the date of enactment of this Act,
the Administrator of the Federal Aviation Administration, in consultation with other Federal agencies, shall submit to the Committee
on Commerce, Science, and Transportation of the Senate and the
Committee on Science, Space, and Technology and the Committee
on Energy and Commerce of the House of Representatives a report
that identifies—
(1) the current and anticipated, with respect to the next decade, need by civil aviation, including equipment manufacturers,
for aeronautical mobile telemetry services; and
(2) the potential impact to the aerospace industry of the introduction of a new radio service that operates in the same spectrum allocated to the aeronautical mobile telemetry service.
SEC. 821. CLARIFICATION OF REQUIREMENTS FOR VOLUNTEER PILOTS OPERATING CHARITABLE MEDICAL FLIGHTS.
(a) REIMBURSEMENT OF FUEL COSTS.—Notwithstanding any

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

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SEC. 822. PILOT PROGRAM FOR REDEVELOPMENT OF AIRPORT PROPERTIES.
(a) IN GENERAL.—Not later than 1 year after the date of enact-

ment of this Act, the Administrator of the Federal Aviation Administration shall establish a pilot program under which operators of
up to 4 public-use airports may receive grants for activities related

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120
to the redevelopment of airport properties in accordance with the requirements of this section.
(b) GRANTS.—Under the pilot program, the Administrator may
make a grant in a fiscal year, from funds made available for grants
under section 47117(e)(1)(A) of title 49, United States Code, to an
airport operator for a project—
(1) to support joint planning, engineering, design, and environmental permitting of projects, including the assembly and
redevelopment of property purchased with noise mitigation
funds made available under section 48103 of such title or passenger facility revenue collected under section 40117 of such
title; and
(2) to encourage airport-compatible land uses and generate
economic benefits to the local airport authority and adjacent
community.
(c) ELIGIBILITY.—An airport operator shall be eligible to participate in the pilot program if—
(1) the operator has received approval for a noise compatibility program under section 47504 of such title; and
(2) the operator demonstrates, as determined by the Administrator—
(A) a readiness to implement cooperative land use
management and redevelopment plans with neighboring
local jurisdictions; and
(B) the probability of a clear economic benefit to neighboring local jurisdictions and financial return to the airport through the implementation of those plans.
(d) DISTRIBUTION.—The Administrator shall seek to award
grants under the pilot program to airport operators representing different geographic areas of the United States.
(e) PARTNERSHIP WITH NEIGHBORING LOCAL JURISDICTIONS.—
An airport operator shall use grant funds made available under the
pilot program only in partnership with neighboring local jurisdictions.
(f) GRANT REQUIREMENTS.—The Administrator may not make a
grant to an airport operator under the pilot program unless the
grant is—
(1) made to enable the airport operator and local jurisdictions undertaking community redevelopment efforts to expedite
those efforts;
(2) subject to a requirement that the local jurisdiction governing the property interests subject to the redevelopment efforts
has adopted and will continue in effect zoning regulations that
permit airport-compatible redevelopment; and
(3) subject to a requirement that, in determining the part
of the proceeds from disposing of land that is subject to repayment
and
reinvestment
requirements
under
section
47107(c)(2)(A) of such title, the total amount of a grant issued
under the pilot program that is attributable to the redevelopment of such land shall be added to other amounts that must
be repaid or reinvested under that section upon disposal of such
land by the airport operator.
(g) EXCEPTIONS TO REPAYMENT AND REINVESTMENT REQUIREMENTS.—Amounts paid to the Secretary of Transportation under
subsection (f)(3)—

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(1) shall be available to the Secretary for, giving preference
to the actions in descending order—
(A) reinvestment in an approved noise compatibility
project at the applicable airport;
(B) reinvestment in another approved project at the airport that is eligible for funding under section 47117(e) of
such title;
(C) reinvestment in an approved airport development
project at the airport that is eligible for funding under section 47114, 47115, or 47117 of such title;
(D) transfer to an operator of another public airport to
be reinvested in an approved noise compatibility project at
such airport; and
(E) deposit in the Airport and Airway Trust Fund established under section 9502 of the Internal Revenue Code
of 1986 (26 U.S.C. 9502);
(2) shall be available in addition to amounts authorized
under section 48103 of such title;
(3) shall not be subject to any limitation on grant obligations for any fiscal year; and
(4) shall remain available until expended.
(h) FEDERAL SHARE.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, the Federal share of the allowable costs of a project carried
out under the pilot program shall be 80 percent.
(2) ALLOWABLE COSTS.—In determining the allowable costs,
the Administrator shall deduct from the total costs of the activities described in subsection (b) that portion of the costs which
is equal to that portion of the total property to be redeveloped
under this section that is not owned or to be acquired by the
airport operator pursuant to the noise compatibility program or
that is not owned by the affected neighboring local jurisdictions
or other public entities.
(i) MAXIMUM AMOUNT.—Not more than $5,000,000 of the funds
made available for grants under section 47117(e)(1)(A) of such title
may be expended under the pilot program for any single public-use
airport.
(j) USE OF PASSENGER REVENUE.—An airport operator participating in the pilot program may use passenger facility revenue collected under section 40117 of such title to pay any project cost described in subsection (b) that is not financed by a grant under the
pilot program.
(k) SUNSET.—This section shall not be in effect after September
30, 2015.

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

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

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York City and Newark Region for the 1-year period beginning on
such date of enactment.
SEC. 824. CYLINDERS OF COMPRESSED OXYGEN OR OTHER OXIDIZING
GASES.
(a) IN GENERAL.—Subject to subsections (b) and (c), entities

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

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SEC. 825. ORPHAN AVIATION EARMARKS.
(a) EARMARK DEFINED.—In this section,

the term ‘‘earmark’’
means a statutory provision or report language included primarily
at the request of a Senator or a Member, Delegate, or Resident Commissioner of the House of Representatives providing, authorizing, or
recommending a specific amount of discretionary budget authority,
credit authority, or other spending authority for a contract, loan,
loan guarantee, grant, or other expenditure with or to an entity or
a specific State, locality, or Congressional district, other than
through a statutory or administrative formula-driven or competitive
award process.
(b) RESCISSION.—If any earmark relating to the Federal Aviation Administration has more than 90 percent of applicable appropriated amounts remaining available for obligation at the end of the
9th fiscal year beginning after the fiscal year in which those
amounts were appropriated, the unobligated portion of those
amounts is rescinded effective at the end of that 9th fiscal year, ex-

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cept that the Administrator of the Federal Aviation Administration
may delay any such rescission if the Administrator determines that
an obligation with respect to those amounts is likely to occur during
the 12-month period beginning on the last day of that 9th fiscal
year.
(c) IDENTIFICATION AND REPORT.—
(1) AGENCY IDENTIFICATION.—At the end of each fiscal year,
the Administrator shall identify and report to the Director of
the Office of Management and Budget every earmark related to
the Administration and with respect to which there is an unobligated balance of appropriated amounts.
(2) ANNUAL REPORT.—Not later than 1 year after the date
of enactment of this Act, and annually thereafter, the Director
shall submit to Congress and make available to the public on
the Internet Web site of the Office a report that includes—
(A) a listing of each earmark related to the Administration and with respect to which there is an unobligated balance of appropriated amounts, which shall include the
amount of the original earmark, the amount of the unobligated balance related to that earmark, and the date on
which the funding expires, if applicable;
(B) the number of rescissions under subsection (b) and
the savings resulting from those rescissions for the previous
fiscal year; and
(C) a listing of earmarks related to the Administration
with amounts scheduled for rescission at the end of the current fiscal year.

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

Section 44901 is amended by adding at the end the following:
‘‘(l) LIMITATIONS ON USE OF ADVANCED IMAGING TECHNOLOGY
FOR SCREENING PASSENGERS.—
‘‘(1) DEFINITIONS.—In this subsection, the following definitions apply:
‘‘(A) ADVANCED IMAGING TECHNOLOGY.—The term ‘advanced imaging technology’—
‘‘(i) means a device used in the screening of passengers that creates a visual image of an individual
showing the surface of the skin and revealing other objects on the body; and
‘‘(ii) may include devices using backscatter x-rays
or millimeter waves and devices referred to as ‘wholebody imaging technology’ or ‘body scanning machines’.
‘‘(B) APPROPRIATE CONGRESSIONAL COMMITTEES.—The
term ‘appropriate congressional committees’ means—
‘‘(i) the Committee on Commerce, Science, and
Transportation and the Committee on Homeland Security and Governmental Affairs of the Senate; and
‘‘(ii) the Committee on Homeland Security of the
House of Representatives.
‘‘(C) AUTOMATIC TARGET RECOGNITION SOFTWARE.—The
term ‘automatic target recognition software’ means software
installed on an advanced imaging technology that produces
a generic image of the individual being screened that is the

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same as the images produced for all other screened individuals.
‘‘(2) USE OF ADVANCED IMAGING TECHNOLOGY.—Beginning
June 1, 2012, the Assistant Secretary of Homeland Security
(Transportation Security Administration) shall ensure that any
advanced imaging technology used for the screening of passengers under this section—
‘‘(A) is equipped with and employs automatic target
recognition software; and
‘‘(B) complies with such other requirements as the Assistant Secretary determines necessary to address privacy
considerations.
‘‘(3) EXTENSION.—
‘‘(A) IN GENERAL.—The Assistant Secretary may extend
the deadline specified in paragraph (2), if the Assistant
Secretary determines that—
‘‘(i) an advanced imaging technology equipped
with automatic target recognition software is not substantially as effective at screening passengers as an advanced imaging technology without such software; or
‘‘(ii) additional testing of such software is necessary.
‘‘(B) DURATION OF EXTENSIONS.—The Assistant Secretary may issue one or more extensions under subparagraph (A). The duration of each extension may not exceed
one year.
‘‘(4) REPORTS.—
‘‘(A) IN GENERAL.—Not later than 60 days after the
deadline specified in paragraph (2), and not later than 60
days after the date on which the Assistant Secretary issues
any extension under paragraph (3), the Assistant Secretary
shall submit to the appropriate congressional committees a
report on the implementation of this subsection.
‘‘(B) ELEMENTS.—A report submitted under subparagraph (A) shall include the following:
‘‘(i) A description of all matters the Assistant Secretary considers relevant to the implementation of the
requirements of this subsection.
‘‘(ii) The status of compliance by the Transportation Security Administration with such requirements.
‘‘(iii) If the Administration is not in full compliance with such requirements—
‘‘(I) the reasons for the noncompliance; and
‘‘(II) a timeline depicting when the Assistant
Secretary expects the Administration to achieve
full compliance.
‘‘(C) SECURITY CLASSIFICATION.—To the greatest extent
practicable, a report prepared under subparagraph (A)
shall be submitted in an unclassified format. If necessary,
the report may include a classified annex.’’.

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SEC. 827. COMMERCIAL SPACE LAUNCH LICENSE REQUIREMENTS.

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

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SEC. 828. AIR TRANSPORTATION OF LITHIUM CELLS AND BATTERIES.
(a) IN GENERAL.—The Secretary of Transportation, including a

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designee of the Secretary, may not issue or enforce any regulation
or other requirement regarding the transportation by aircraft of lithium metal cells or batteries or lithium ion cells or batteries, whether
transported separately or packed with or contained in equipment, if
the requirement is more stringent than the requirements of the
ICAO Technical Instructions.
(b) EXCEPTIONS.—
(1) PASSENGER CARRYING AIRCRAFT.—Notwithstanding subsection (a), the Secretary may enforce the prohibition on transporting primary (non-rechargeable) lithium batteries and cells
aboard passenger carrying aircraft set forth in special provision
A100 under section 172.102(c)(2) of title 49, Code of Federal
Regulations (as in effect on the date of enactment of this Act).
(2) CREDIBLE REPORTS.—Notwithstanding subsection (a), if
the Secretary obtains a credible report with respect to a safety
incident from a national or international governmental regulatory or investigating body that demonstrates that the presence
of lithium metal cells or batteries or lithium ion cells or batteries on an aircraft, whether transported separately or packed
with or contained in equipment, in accordance with the requirements of the ICAO Technical Instructions, has substantially
contributed to the initiation or propagation of an onboard fire,
the Secretary—
(A) may issue and enforce an emergency regulation,
more stringent than the requirements of the ICAO Technical Instructions, that governs the transportation by aircraft of such cells or batteries, if that regulation—
(i) addresses solely deficiencies referenced in the report; and
(ii) is effective for not more than 1 year; and
(B) may adopt and enforce a permanent regulation,
more stringent than the requirements of the ICAO Technical Instructions, that governs the transportation by aircraft of such cells or batteries, if—
(i) the Secretary bases the regulation upon substantial credible evidence that the otherwise permissible presence of such cells or batteries would substantially contribute to the initiation or propagation of an
onboard fire;
(ii) the regulation addresses solely the deficiencies
in existing regulations; and
(iii) the regulation imposes the least disruptive and
least expensive variation from existing requirements
while adequately addressing identified deficiencies.
(c) ICAO TECHNICAL INSTRUCTIONS DEFINED.—In this section,
the term ‘‘ICAO Technical Instructions’’ means the International
Civil Aviation Organization Technical Instructions for the Safe
Transport of Dangerous Goods by Air (as amended, including
amendments adopted after the date of enactment of this Act).
SEC. 829. CLARIFICATION OF MEMORANDUM OF UNDERSTANDING
WITH OSHA.

Not later than 6 months after the date of enactment of this Act,
the Administrator of the Federal Aviation Administration shall—

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(1) establish milestones, in consultation with the Occupational Safety and Health Administration, in a report to Congress—
(A) for the completion of work begun under the August
2000 memorandum of understanding between the Administrations; and
(B) to address issues that need further action, as set
forth in the December 2000 joint report of the Administrations; and
(2) initiate development of a policy statement to set forth
the circumstances in which requirements of the Occupational
Safety and Health Administration may be applied to crewmembers while working in an aircraft.

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SEC. 830. APPROVAL OF APPLICATIONS FOR THE AIRPORT SECURITY
SCREENING OPT-OUT PROGRAM.
(a) IN GENERAL.—Section 44920(b) is amended to read as fol-

lows:
‘‘(b) APPROVAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—Not later than 120 days after the date
of receipt of an application submitted by an airport operator
under subsection (a), the Under Secretary shall approve or deny
the application.
‘‘(2) STANDARDS.—The Under Secretary shall approve an
application submitted by an airport operator under subsection
(a) if the Under Secretary determines that the approval would
not compromise security or detrimentally affect the cost-efficiency or the effectiveness of the screening of passengers or property at the airport.
‘‘(3) REPORTS ON DENIALS OF APPLICATIONS.—
‘‘(A) IN GENERAL.—If the Under Secretary denies an
application submitted by an airport operator under subsection (a), the Under Secretary shall provide to the airport
operator, not later than 60 days following the date of the
denial, a written report that sets forth—
‘‘(i) the findings that served as the basis for the denial;
‘‘(ii) the results of any cost or security analysis conducted in considering the application; and
‘‘(iii) recommendations on how the airport operator
can address the reasons for the denial.
‘‘(B) SUBMISSION TO CONGRESS.—The Under Secretary
shall submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Homeland Security of the House of Representatives a copy of any
report provided to an airport operator under subparagraph
(A).’’.
(b) WAIVERS.—Section 44920(d) is amended—
(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and moving the subparagraphs
2 ems to the right;
(2) by striking ‘‘The Under Secretary’’ and inserting the following:
‘‘(1) IN GENERAL.—The Under Secretary’’; and
(3) by adding at the end the following:

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127
‘‘(2) WAIVERS.—The Under Secretary may waive the requirement of paragraph (1)(B) for any company that is a United
States subsidiary with a parent company that has implemented
a foreign ownership, control, or influence mitigation plan that
has been approved by the Defense Security Service of the Department of Defense prior to the submission of the application.
The Under Secretary has complete discretion to reject any application from a private screening company to provide screening
services at an airport that requires a waiver under this paragraph.’’.
(c) RECOMMENDATIONS OF AIRPORT OPERATOR.—Section 44920
is amended by adding at the end the following:
‘‘(h) RECOMMENDATIONS OF AIRPORT OPERATOR.—As part of
any submission of an application for a private screening company
to provide screening services at an airport, the airport operator shall
provide to the Under Secretary a recommendation as to which company would best serve the security screening and passenger needs of
the airport, along with a statement explaining the basis of the operator’s recommendation.’’.
(d) RECONSIDERATION OF APPLICATIONS PENDING AS OF JANUARY 1, 2011.—
(1) IN GENERAL.—Upon the request of an airport operator,
the Secretary of Homeland Security shall reconsider any application for the screening of passengers and property that—
(A) was submitted by the operator of an airport pursuant to section 44920(a) of title 49, United States Code;
(B) was pending for final decision by the Secretary on
any day between January 1, 2011, and February 3, 2011,
and was resubmitted by the applicant in accordance with
new guidelines provided by the Secretary after February 3,
2011; and
(C) has not been approved by the Secretary on or before
the date of enactment of this Act.
(2) NOTICE TO AIRPORT OPERATORS.—In reconsidering an
application submitted under paragraph (1), the Secretary
shall—
(A) notify the airport operator that submitted the application that the Secretary will reconsider the application;
(B) if the application was initially denied, advise the
operator of the findings that served as the basis for the denial; and
(C) request the operator to provide the Secretary with
such additional information as the Secretary determines
necessary to reconsider the application.
(3) DEADLINE; STANDARDS.—The Secretary shall approve or
deny an application to be reconsidered under paragraph (1) not
later than the 120th day following the date of the request for
reconsideration from the airport operator. The Secretary shall
apply the standards set forth in section 44920(b) of title 49,
United States Code (as amended by this section), in approving
and denying such application.
(4) REPORTS ON DENIALS OF APPLICATIONS.—
(A) IN GENERAL.—If the Secretary denies an application of an airport operator following reconsideration under

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this subsection, the Secretary shall provide to the airport
operator a written report that sets forth—
(i) the findings that served as the basis for the denial; and
(ii) the results of any cost or security analysis conducted in considering the application.
(B) SUBMISSION TO CONGRESS.—The Secretary shall
submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Homeland
Security of the House of Representatives a copy of any report provided to an airport operator under subparagraph
(A).
TITLE IX—FEDERAL AVIATION RESEARCH AND
DEVELOPMENT

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SEC. 901. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 48102(a) is amended—

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

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

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SEC. 902. DEFINITIONS.

In this title, the following definitions apply:
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the
Administrator of the FAA.
(2) FAA.—The term ‘‘FAA’’ means the Federal Aviation Administration.
(3) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘institution of higher education’’ has the same meaning given the term
in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
(4) NASA.—The term ‘‘NASA’’ means the National Aeronautics and Space Administration.
(5) NOAA.—The term ‘‘NOAA’’ means the National Oceanic
and Atmospheric Administration.
SEC. 903. UNMANNED AIRCRAFT SYSTEMS.
(a) RESEARCH INITIATIVE.—Section 44504(b)

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(1) in paragraph (6) by striking ‘‘and’’ after the semicolon;
(2) in paragraph (7) by striking the period at the end and
inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(8) in conjunction with other Federal agencies, as appropriate, to develop technologies and methods to assess the risk of
and prevent defects, failures, and malfunctions of products,
parts, and processes for use in all classes of unmanned aircraft
systems that could result in a catastrophic failure of the unmanned aircraft that would endanger other aircraft in the national airspace system.’’.
(b) SYSTEMS, PROCEDURES, FACILITIES, AND DEVICES.—Section
44505(b) is amended—
(1) in paragraph (4) by striking ‘‘and’’ after the semicolon;
(2) in paragraph (5)(C) by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(6) to develop a better understanding of the relationship
between human factors and unmanned aircraft system safety;
and
‘‘(7) to develop dynamic simulation models for integrating
all classes of unmanned aircraft systems into the national airspace system without any degradation of existing levels of safety
for all national airspace system users.’’.
SEC. 904. RESEARCH PROGRAM ON RUNWAYS.

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

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SEC. 905. RESEARCH ON DESIGN FOR CERTIFICATION.

Section 44505 is amended—
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
‘‘(d) RESEARCH ON DESIGN FOR CERTIFICATION.—
‘‘(1) RESEARCH.—Not later than 1 year after the date of enactment of the FAA Modernization and Reform Act of 2012, the
Administrator shall conduct research on methods and procedures to improve both confidence in and the timeliness of certification of new technologies for their introduction into the national airspace system.
‘‘(2) RESEARCH PLAN.—Not later than 6 months after the
date of enactment of the FAA Modernization and Reform Act of
2012, the Administrator shall develop a plan for the research
under paragraph (1) that contains objectives, proposed tasks,
milestones, and a 5-year budgetary profile.

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‘‘(3) REVIEW.—The Administrator shall enter into an arrangement with the National Research Council to conduct an
independent review of the plan developed under paragraph (2)
and shall provide the results of that review to the Committee on
Science, Space, and Technology of the House of Representatives
and the Committee on Commerce, Science, and Transportation
of the Senate not later than 18 months after the date of enactment of the FAA Modernization and Reform Act of 2012.’’.
SEC. 906. AIRPORT COOPERATIVE RESEARCH PROGRAM.

Section 44511(f) is amended—
(1) in paragraph (1) by striking ‘‘establish a 4-year pilot’’
and inserting ‘‘maintain an’’; and
(2) in paragraph (4)—
(A) by striking ‘‘Not later than 6 months after the expiration of the program under this subsection,’’ and inserting
‘‘Not later than September 30, 2012,’’; and
(B) by striking ‘‘program, including recommendations
as to the need for establishing a permanent airport cooperative research program’’ and inserting ‘‘program’’.
SEC. 907. CENTERS OF EXCELLENCE.
(a) GOVERNMENT’S SHARE OF

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

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SEC. 908. CENTER OF EXCELLENCE FOR AVIATION HUMAN RESOURCE
RESEARCH.
(a) ESTABLISHMENT.—Using amounts made available under

section 48102(a) of title 49, United States Code, the Administrator
may establish a center of excellence to conduct research on—
(1) human performance in the air transportation environment, including among air transportation personnel such as air
traffic controllers, pilots, and technicians; and

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(2) any other aviation human resource issue pertinent to developing and maintaining a safe and efficient air transportation system.
(b) ACTIVITIES.—Activities conducted under this section may include the following:
(1) Research, development, and evaluation of training programs for air traffic controllers, aviation safety inspectors, airway transportation safety specialists, and engineers.
(2) Research and development of best practices for recruitment of individuals into the aviation field for mission critical
positions.
(3) Research, in consultation with other relevant Federal
agencies, to develop a baseline of general aviation employment
statistics and an analysis of future needs in the aviation field.
(4) Research and the development of a comprehensive assessment of the airframe and power plant technician certification process and its effect on employment trends.
(5) Evaluation of aviation maintenance technician school
environments.
(6) Research and an assessment of the ability to develop
training programs to allow for the transition of recently unemployed and highly skilled mechanics into the aviation field.
SEC. 909. INTERAGENCY RESEARCH ON AVIATION AND THE ENVIRONMENT.
(a) IN GENERAL.—Using amounts made available under section

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

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SEC. 910. AVIATION FUEL RESEARCH AND DEVELOPMENT PROGRAM.
(a) IN GENERAL.—Using amounts made available under section

48102(a) of title 49, United States Code, the Administrator, in coordination with the Administrator of NASA, shall continue research
and development activities into the qualification of an unleaded
aviation fuel and safe transition to this fuel for the fleet of piston
engine aircraft.
(b) REQUIREMENTS.—In carrying out the program under subsection (a), the Administrator shall, at a minimum—

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

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SEC. 911. RESEARCH PROGRAM ON ALTERNATIVE JET FUEL TECHNOLOGY FOR CIVIL AIRCRAFT.
(a) IN GENERAL.—Using amounts made available under section

48102(a) of title 49, United States Code, the Administrator shall establish a research program to assist in the development and qualification of jet fuel from alternative sources (such as natural gas, biomass, ethanol, butanol, and hydrogen) and other renewable sources.
(b) AUTHORITY TO MAKE GRANTS.—The Administrator shall
carry out the program through the use of grants or other measures
authorized under section 106(l)(6) of such title, including reimbursable agreements with other Federal agencies.
(c) PARTICIPATION IN PROGRAM.—
(1) PARTICIPATION OF EDUCATIONAL AND RESEARCH INSTITUTIONS.—In carrying out the program, the Administrator shall
include participation by—
(A) educational and research institutions that have existing facilities and leverage private sector partnerships;
and
(B) consortia with experience across the supply chain,
including with research, feedstock development and production, small-scale development, testing, and technology evaluation related to the creation, processing, production, and
transportation of alternative aviation fuel.
(2) USE OF NASA FACILITIES.—In carrying out the program,
the Administrator shall consider utilizing the existing capacity
in aeronautics research at Langley Research Center, Glenn Research Center, and other appropriate facilities of NASA.

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(d) DESIGNATION

OF

INSTITUTION

AS A

CENTER

OF

EXCEL-

LENCE.—

(1) IN GENERAL.—Not later than 180 days after the date of
enactment of this Act, the Administrator may designate an institution described in subsection (c)(1)(A) as a Center of Excellence for Alternative Jet-Fuel Research in Civil Aircraft.
(2) EFFECT OF DESIGNATION.—The center designated under
paragraph (1) shall become, upon its designation—
(A) a member of the Consortium for Continuous Low
Energy, Emissions, and Noise of the FAA; and
(B) part of a Joint Center of Excellence with the Partnership for Air Transportation Noise and Emission Reduction FAA Center of Excellence.
SEC. 912. REVIEW OF FAA’S ENERGY-RELATED AND ENVIRONMENT-RELATED RESEARCH PROGRAMS.
(a) REVIEW.—Using amounts made available under section

48102(a) of title 49, United States Code, the Administrator shall
enter into an arrangement for an independent external review of
FAA energy-related and environment-related research programs.
The review shall assess whether—
(1) the programs have well-defined, prioritized, and appropriate research objectives;
(2) the programs are properly coordinated with the energyrelated and environment-related research programs at NASA,
NOAA, and other relevant agencies;
(3) the programs have allocated appropriate resources to
each of the research objectives; and
(4) there exist suitable mechanisms for transitioning the research results into the FAA’s operational technologies and procedures and certification activities.
(b) REPORT.—Not later than 18 months after the date of enactment of this Act, the Administrator shall submit a report to the
Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate containing the results of the review.

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SEC. 913. REVIEW OF FAA’S AVIATION SAFETY-RELATED RESEARCH
PROGRAMS.
(a) REVIEW.—Using amounts made available under section

48102(a) of title 49, United States Code, the Administrator shall
enter into an arrangement for an independent external review of the
FAA’s aviation safety-related research programs. The review shall
assess whether—
(1) the programs have well-defined, prioritized, and appropriate research objectives;
(2) the programs are properly coordinated with the safety
research programs of NASA and other relevant Federal agencies;
(3) the programs have allocated appropriate resources to
each of the research objectives;
(4) the programs should include a determination about
whether a survey of participants across the air transportation
system is an appropriate way to study safety risks within such
system; and
(5) there exist suitable mechanisms for transitioning the research results from the programs into the FAA’s operational

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technologies and procedures and certification activities in a
timely manner.
(b) AVIATION SAFETY-RELATED RESEARCH PROGRAMS TO BE ASSESSED.—The FAA aviation safety-related research programs to be
assessed under the review shall include, at a minimum, the following:
(1) Air traffic control/technical operations human factors.
(2) Runway incursion reduction.
(3) Flightdeck/maintenance system integration human factors.
(4) Airports technology research—safety.
(5) Airport Cooperative Research Program— safety.
(6) Weather Program.
(7) Atmospheric hazards/digital system safety.
(8) Fire research and safety.
(9) Propulsion and fuel systems.
(10) Advanced materials/structural safety.
(11) Aging aircraft.
(12) Aircraft catastrophic failure prevention research.
(13) Aeromedical research.
(14) Aviation safety risk analysis.
(15) Unmanned aircraft systems research.
(c) REPORT.—Not later than 14 months after the date of enactment of this Act, the Administrator shall submit to the Committee
on Science, Space, and Technology of the House of Representatives
and the Committee on Commerce, Science, and Transportation of
the Senate a report on the results of the review.
SEC. 914. PRODUCTION OF CLEAN COAL FUEL TECHNOLOGY FOR CIVILIAN AIRCRAFT.
(a) ESTABLISHMENT OF RESEARCH PROGRAM.—Using amounts

made available under section 48102(a) of title 49, United States
Code, the Administrator shall establish a research program related
to developing jet fuel from clean coal.
(b) AUTHORITY TO MAKE GRANTS.—The Administrator shall
carry out the program through grants or other measures authorized
under section 106(l)(6) of such title, including reimbursable agreements with other Federal agencies.
(c) PARTICIPATION IN PROGRAM.—In carrying out the program,
the Administrator shall include participation by educational and research institutions that have existing facilities and experience in the
development and deployment of technology that processes coal into
aviation fuel.
(d) DESIGNATION OF INSTITUTION AS A CENTER OF EXCELLENCE.—Not later than 180 days after the date of enactment of this
Act, the Administrator may designate an institution described in
subsection (c) as a Center of Excellence for Coal-to-Jet-Fuel Research.

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

Not later than 60 days after the date of enactment of this Act,
the Administrator shall—
(1) initiate an evaluation of proposals related to research on
the nature of wake vortexes that would increase national airspace system capacity by reducing existing spacing requirements between aircraft of all sizes;

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(2) begin implementation of a system to improve volcanic
ash avoidance options for aircraft, including the development of
a volcanic ash warning and notification system for aviation;
and
(3) coordinate with NOAA, NASA, and other appropriate
Federal agencies to conduct research to reduce the hazards presented to commercial aviation related to—
(A) ground de-icing and anti-icing, ice pellets, and
freezing drizzle;
(B) oceanic weather, including convective weather;
(C) en route turbulence prediction and detection; and
(D) all hazards during oceanic operations, where commercial traffic is high and only rudimentary satellite sensing is available.
SEC. 916. REAUTHORIZATION OF CENTER OF EXCELLENCE IN APPLIED
RESEARCH AND TRAINING IN THE USE OF ADVANCED MATERIALS IN TRANSPORT AIRCRAFT.

Section 708(b) of the Vision 100—Century of Aviation Reauthorization Act (49 U.S.C. 44504 note) is amended by striking ‘‘for fiscal
year 2004’’ and inserting ‘‘for each of fiscal years 2012 through
2015’’.
SEC. 917. RESEARCH AND DEVELOPMENT OF EQUIPMENT TO CLEAN
AND MONITOR THE ENGINE AND APU BLEED AIR SUPPLIED ON PRESSURIZED AIRCRAFT.
(a) IN GENERAL.—Not later than 60 days after the date of en-

actment of this Act, the Administrator, to the extent practicable,
shall implement a research program for the identification or development of appropriate and effective air cleaning technology and sensor technology for the engine and auxiliary power unit bleed air
supplied to the passenger cabin and flight deck of a pressurized aircraft.
(b) TECHNOLOGY REQUIREMENTS.—The technology referred to in
subsection (a) shall have the capacity, at a minimum—
(1) to remove oil-based contaminants from the bleed air
supplied to the passenger cabin and flight deck; and
(2) to detect and record oil-based contaminants in the portion of the total air supplied to the passenger cabin and flight
deck from bleed air.
(c) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Administrator shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure and the Committee on
Science, Space, and Technology of the House of Representatives a report on the results of the research and development work carried out
under this section.

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SEC. 918. EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR
NEXTGEN.
(a) REVIEW.—The Administrator shall enter into an arrange-

ment for an independent external review of the enterprise architecture for the Next Generation Air Transportation System.
(b) CONTENTS.—At a minimum, the review to be conducted
under subsection (a) shall—
(1) highlight the technical activities, including human-system design, organizational design, and other safety and human
factor aspects of the system, that will be necessary to success-

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fully transition current and planned modernization programs to
the future system envisioned by the Joint Planning and Development Office of the FAA;
(2) assess technical, cost, and schedule risk for the software
development that will be necessary to achieve the expected benefits from a highly automated air traffic management system
and the implications for ongoing modernization projects; and
(3) determine how risks with automation efforts for the
Next Generation Air Transportation System can be mitigated
based on the experiences of other public or private entities in developing complex, software-intensive systems.
(c) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Administrator shall submit to the Committee on
Transportation and Infrastructure and the Committee on Science,
Space, and Technology of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the Senate
a report containing the results of the review conducted pursuant to
subsection (a).
SEC. 919. AIRPORT SUSTAINABILITY PLANNING WORKING GROUP.
(a) IN GENERAL.—Not later than 90 days after the date of

enactment of this Act, the Administrator shall prepare and submit a
problem statement to the Transportation Research Board for the
purpose of initiating a study under the Airport Cooperative Research Program on airport sustainability practices.
(b) FUNCTIONS.—The purpose of the study shall be—
(1) to examine and develop best airport practices and
metrics for the sustainable design, construction, planning,
maintenance, and operation of an airport;
(2) to examine potential standards for a rating system
based on the best sustainable practices and metrics;
(3) to examine potential standards for a voluntary airport
rating process based on the best sustainable practices, metrics,
and ratings; and
(4) to examine and develop recommendations for future actions with regard to sustainability.
(c) REPORT.—Not later than 18 months after the date of initiation of the study, a report on the study shall be submitted to the
Administrator and the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.
TITLE X—NATIONAL MEDIATION BOARD
SEC. 1001. RULEMAKING AUTHORITY.

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

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‘‘SEC. 10A. RULES AND REGULATIONS.
‘‘(a) IN GENERAL.—The Mediation

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

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SEC. 1002. RUNOFF ELECTION RULES.

Paragraph Ninth of section 2 of the Railway Labor Act (45
U.S.C. 152) is amended by inserting after the fourth sentence the
following: ‘‘In any such election for which there are 3 or more options (including the option of not being represented by any labor organization) on the ballot and no such option receives a majority of
the valid votes cast, the Mediation Board shall arrange for a second
election between the options receiving the largest and the second
largest number of votes.’’.
SEC. 1003. BARGAINING REPRESENTATIVE CERTIFICATION.

Section 2 of the Railway Labor Act (45 U.S.C. 152) is amended
by adding at the end the following:
‘‘Twelfth. Showing of interest for representation elections. The
Mediation Board, upon receipt of an application requesting that an
organization or individual be certified as the representative of any
craft or class of employees, shall not direct an election or use any
other method to determine who shall be the representative of such
craft or class unless the Mediation Board determines that the application is supported by a showing of interest from not less than 50
percent of the employees in the craft or class.’’.
SEC. 1004. OVERSIGHT.

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

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‘‘SEC. 15. EVALUATION AND AUDIT OF MEDIATION BOARD.
‘‘(a) EVALUATION AND AUDIT OF MEDIATION BOARD.—
‘‘(1) IN GENERAL.—In order to promote economy,

efficiency,
and effectiveness in the administration of the programs, operations, and activities of the Mediation Board, the Comptroller
General of the United States shall evaluate and audit the programs and expenditures of the Mediation Board. Such an evaluation and audit shall be conducted not less frequently than
every 2 years, but may be conducted as determined necessary by
the Comptroller General or the appropriate congressional committees.
‘‘(2) RESPONSIBILITY OF COMPTROLLER GENERAL.—In carrying out the evaluation and audit required under paragraph
(1), the Comptroller General shall evaluate and audit the programs, operations, and activities of the Mediation Board, including, at a minimum—
‘‘(A) information management and security, including
privacy protection of personally identifiable information;
‘‘(B) resource management;
‘‘(C) workforce development;
‘‘(D) procurement and contracting planning, practices,
and policies;
‘‘(E) the extent to which the Mediation Board follows
leading practices in selected management areas; and
‘‘(F) the processes the Mediation Board follows to address challenges in—
‘‘(i) initial investigations of applications requesting
that an organization or individual be certified as the
representative of any craft or class of employees;
‘‘(ii) determining and certifying representatives of
employees; and

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‘‘(iii) ensuring that the process occurs without interference, influence, or coercion.
‘‘(b) IMMEDIATE REVIEW OF CERTIFICATION PROCEDURES.—Not
later than 180 days after the date of enactment of this section, the
Comptroller General shall review the processes applied by the Mediation Board to certify or decertify representation of employees by a
labor organization and make recommendations to the Board and
appropriate congressional committees regarding actions that may be
taken by the Board or Congress to ensure that the processes are fair
and reasonable for all parties. Such review shall be conducted separately from any evaluation and audit under subsection (a) and shall
include, at a minimum—
‘‘(1) an evaluation of the existing processes and changes to
such processes that have occurred since the establishment of the
Mediation Board and whether those changes are consistent with
congressional intent; and
‘‘(2) a description of the extent to which such processes are
consistent with similar processes applied to other Federal or
State agencies with jurisdiction over labor relations, and an
evaluation of any justifications for any discrepancies between
the processes of the Mediation Board and such similar Federal
or State processes.
‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEE DEFINED.—In
this section, the term ‘appropriate congressional committees’ means
the Committee on Transportation and Infrastructure of the House of
Representatives, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Health, Education,
Labor, and Pensions of the Senate.’’.
TITLE XI—AIRPORT AND AIRWAY TRUST FUND
PROVISIONS AND RELATED TAXES
SEC. 1100. AMENDMENT OF 1986 CODE.

Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

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SEC. 1101. EXTENSION OF TAXES FUNDING AIRPORT AND AIRWAY
TRUST FUND.
(a) FUEL TAXES.—Subparagraph (B) of section 4081(d)(2) is

amended by striking ‘‘February 17, 2012’’ and inserting ‘‘September
30, 2015’’.
(b) TICKET TAXES.—
(1) PERSONS.—Clause (ii) of section 4261(j)(1)(A) is amended by striking ‘‘February 17, 2012’’ and inserting ‘‘September
30, 2015’’.
(2) PROPERTY.—Clause (ii) of section 4271(d)(1)(A) is
amended by striking ‘‘February 17, 2012’’ and inserting ‘‘September 30, 2015’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on February 18, 2012.

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SEC. 1102. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE AUTHORITY.
(a) IN GENERAL.—Paragraph (1) of section 9502(d) is amend-

ed—
(1) by striking ‘‘February 18, 2012’’ in the matter preceding
subparagraph (A) and inserting ‘‘October 1, 2015’’, and
(2) by striking the semicolon at the end of subparagraph
(A) and inserting ‘‘or the FAA Modernization and Reform Act
of 2012;’’.
(b) CONFORMING AMENDMENT.—Paragraph (2) of section
9502(e) is amended by striking ‘‘February 18, 2012’’ and inserting
‘‘October 1, 2015’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on February 18, 2012.
SEC. 1103. TREATMENT OF FRACTIONAL AIRCRAFT OWNERSHIP PROGRAMS.
(a) FUEL SURTAX.—
(1) IN GENERAL.—Subchapter B of chapter 31 is amended

by adding at the end the following new section:

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‘‘SEC. 4043. SURTAX ON FUEL USED IN AIRCRAFT PART OF A FRACTIONAL OWNERSHIP PROGRAM.
‘‘(a) IN GENERAL.—There is hereby imposed a tax on any liquid

used (during any calendar quarter by any person) in a fractional
program aircraft as fuel—
‘‘(1) for the transportation of a qualified fractional owner
with respect to the fractional ownership aircraft program of
which such aircraft is a part, or
‘‘(2) with respect to the use of such aircraft on account of
such a qualified fractional owner, including use in deadhead
service.
‘‘(b) AMOUNT OF TAX.—The rate of tax imposed by subsection (a)
is 14.1 cents per gallon.
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For purposes of this
section—
‘‘(1) FRACTIONAL PROGRAM AIRCRAFT.—The term ‘fractional
program aircraft’ means, with respect to any fractional ownership aircraft program, any aircraft which—
‘‘(A) is listed as a fractional program aircraft in the
management specifications issued to the manager of such
program by the Federal Aviation Administration under
subpart K of part 91 of title 14, Code of Federal Regulations, and
‘‘(B) is registered in the United States.
‘‘(2) FRACTIONAL OWNERSHIP AIRCRAFT PROGRAM.—The
term ‘fractional ownership aircraft program’ means a program
under which—
‘‘(A) a single fractional ownership program manager
provides fractional ownership program management services on behalf of the fractional owners,
‘‘(B) there are 1 or more fractional owners per fractional program aircraft, with at least 1 fractional program
aircraft having more than 1 owner,
‘‘(C) with respect to at least 2 fractional program aircraft, none of the ownership interests in such aircraft are—

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141
‘‘(i) less than the minimum fractional ownership
interest, or
‘‘(ii) held by the program manager referred to in
subparagraph (A),
‘‘(D) there exists a dry-lease aircraft exchange arrangement among all of the fractional owners, and
‘‘(E) there are multi-year program agreements covering
the fractional ownership, fractional ownership program
management services, and dry-lease aircraft exchange aspects of the program.
‘‘(3) DEFINITIONS RELATED TO FRACTIONAL OWNERSHIP INTERESTS.—
‘‘(A) QUALIFIED FRACTIONAL OWNER.—The term ‘qualified fractional owner’ means any fractional owner which
has a minimum fractional ownership interest in at least
one fractional program aircraft.
‘‘(B) MINIMUM FRACTIONAL OWNERSHIP INTEREST.—The
term ‘minimum fractional ownership interest’ means, with
respect to each type of aircraft—
‘‘(i) a fractional ownership interest equal to or
greater than 1/16 of at least 1 subsonic, fixed wing, or
powered lift aircraft, or
‘‘(ii) a fractional ownership interest equal to or
greater than 1/32 of at least 1 rotorcraft aircraft.
‘‘(C) FRACTIONAL OWNERSHIP INTEREST.—The term
‘fractional ownership interest’ means—
‘‘(i) the ownership of an interest in a fractional
program aircraft,
‘‘(ii) the holding of a multi-year leasehold interest
in a fractional program aircraft, or
‘‘(iii) the holding of a multi-year leasehold interest
which is convertible into an ownership interest in a
fractional program aircraft.
‘‘(D) FRACTIONAL OWNER.—The term ‘fractional owner’
means any person owning any interest (including the entire
interest) in a fractional program aircraft.
‘‘(4) DRY-LEASE AIRCRAFT EXCHANGE.—The term ‘dry-lease
aircraft exchange’ means an agreement, documented by the
written program agreements, under which the fractional program aircraft are available, on an as needed basis without
crew, to each fractional owner.
‘‘(5) SPECIAL RULE RELATING TO USE OF FRACTIONAL PROGRAM AIRCRAFT FOR FLIGHT DEMONSTRATION, MAINTENANCE, OR
TRAINING.—For purposes of subsection (a), a fractional program
aircraft shall not be considered to be used for the transportation
of a qualified fractional owner, or on account of such qualified
fractional owner, when it is used for flight demonstration,
maintenance, or crew training.
‘‘(6) SPECIAL RULE RELATING TO DEADHEAD SERVICE.—A
fractional program aircraft shall not be considered to be used
on account of a qualified fractional owner when it is used in
deadhead service and a person other than a qualified fractional
owner is separately charged for such service.
‘‘(d) TERMINATION.—This section shall not apply to liquids used
as a fuel in an aircraft after September 30, 2021.’’.

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(2) CONFORMING AMENDMENT.—Subsection (e) of section
4082 is amended by inserting ‘‘(other than kerosene with respect
to which tax is imposed under section 4043)’’ after ‘‘In the case
of kerosene’’.
(3) TRANSFER OF REVENUES TO AIRPORT AND AIRWAY TRUST
FUND.—Paragraph (1) of section 9502(b) is amended by redesignating subparagraphs (B) and (C) as subparagraphs (C) and
(D), respectively, and by inserting after subparagraph (A) the
following new subparagraph:
‘‘(B) section 4043 (relating to surtax on fuel used in aircraft part of a fractional ownership program),’’.
(4) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 31 is amended by adding at the end the
following new item:
‘‘Sec. 4043. Surtax on fuel used in aircraft part of a fractional ownership program.’’.
(b) FRACTIONAL OWNERSHIP PROGRAMS TREATED AS NON-COMMERCIAL AVIATION.—Subsection (b) of section 4083 is amended by

adding at the end the following new sentence: ‘‘Such term shall not
include the use of any aircraft before October 1, 2015, if tax is imposed under section 4043 with respect to the fuel consumed in such
use or if no tax is imposed on such use under section 4043 by reason
of subsection (c)(5) thereof.’’.
(c) EXEMPTION FROM TAX ON TRANSPORTATION OF PERSONS.—
Section 4261, as amended by this Act, is amended by redesignating
subsection (j) as subsection (k) and by inserting after subsection (i)
the following new subsection:
‘‘(j) EXEMPTION FOR AIRCRAFT IN FRACTIONAL OWNERSHIP AIRCRAFT PROGRAMS.—No tax shall be imposed by this section or section 4271 on any air transportation if tax is imposed under section
4043 with respect to the fuel used in such transportation. This subsection shall not apply after September 30, 2015.’’.
(d) EFFECTIVE DATES.—
(1) SUBSECTION (a).—The amendments made by subsection
(a) shall apply to fuel used after March 31, 2012.
(2) SUBSECTION (b).—The amendment made by subsection
(b) shall apply to uses of aircraft after March 31, 2012.
(3) SUBSECTION (c).—The amendments made by subsection
(c) shall apply to taxable transportation provided after March
31, 2012.

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SEC. 1104. TRANSPARENCY IN PASSENGER TAX DISCLOSURES.
(a) IN GENERAL.—Section 7275 is amended—

(1) by redesignating subsection (c) as subsection (d),
(2) by striking ‘‘subsection (a) or (b)’’ in subsection (d), as
so redesignated, and inserting ‘‘subsection (a), (b), or (c)’’, and
(3) by inserting after subsection (b) the following new subsection:
‘‘(c) NON-TAX CHARGES.—
‘‘(1) IN GENERAL.—In the case of transportation by air for
which disclosure on the ticket or advertising for such transportation of the amounts paid for passenger taxes is required by
subsection (a)(2) or (b)(1)(B), if such amounts are separately
disclosed, it shall be unlawful for the disclosure of such
amounts to include any amounts not attributable to such taxes.
‘‘(2) INCLUSION IN TRANSPORTATION COST.—Nothing in this
subsection shall prohibit the inclusion of amounts not attrib-

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utable to the taxes imposed by subsection (a), (b), or (c) of section 4261 in the disclosure of the amount paid for transportation as required by subsection (a)(1) or (b)(1)(A), or in a separate disclosure of amounts not attributable to such taxes.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable transportation provided after March 31, 2012.
SEC. 1105. TAX-EXEMPT BOND FINANCING FOR FIXED-WING EMERGENCY MEDICAL AIRCRAFT.
(a) IN GENERAL.—Subsection (e) of section 147 is amended by

adding at the end the following new sentence: ‘‘The preceding sentence shall not apply to any fixed-wing aircraft equipped for, and
exclusively dedicated to providing, acute care emergency medical
services (within the meaning of section 4261(g)(2)).’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to obligations issued after the date of the enactment of
this Act.

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SEC. 1106. ROLLOVER OF AMOUNTS RECEIVED IN AIRLINE CARRIER
BANKRUPTCY.
(a) GENERAL RULES.—
(1) ROLLOVER OF AIRLINE PAYMENT AMOUNT.—If a qualified

airline employee receives any airline payment amount and
transfers any portion of such amount to a traditional IRA within 180 days of receipt of such amount (or, if later, within 180
days of the date of the enactment of this Act), then such amount
(to the extent so transferred) shall be treated as a rollover contribution described in section 402(c) of the Internal Revenue
Code of 1986. A qualified airline employee making such a
transfer may exclude from gross income the amount transferred,
in the taxable year in which the airline payment amount was
paid to the qualified airline employee by the commercial passenger airline carrier.
(2) TRANSFER OF AMOUNTS ATTRIBUTABLE TO AIRLINE PAYMENT AMOUNT FOLLOWING ROLLOVER TO ROTH IRA.—A qualified
airline employee who has contributed an airline payment
amount to a Roth IRA that is treated as a qualified rollover
contribution pursuant to section 125 of the Worker, Retiree, and
Employer Recovery Act of 2008, may transfer to a traditional
IRA, in a trustee-to-trustee transfer, all or any part of the contribution (together with any net income allocable to such contribution), and the transfer to the traditional IRA will be
deemed to have been made at the time of the rollover to the
Roth IRA, if such transfer is made within 180 days of the date
of the enactment of this Act. A qualified airline employee making such a transfer may exclude from gross income the airline
payment amount previously rolled over to the Roth IRA, to the
extent an amount attributable to the previous rollover was
transferred to a traditional IRA, in the taxable year in which
the airline payment amount was paid to the qualified airline
employee by the commercial passenger airline carrier. No
amount so transferred to a traditional IRA may be treated as
a qualified rollover contribution with respect to a Roth IRA
within the 5-taxable year period beginning with the taxable
year in which such transfer was made.
(3) EXTENSION OF TIME TO FILE CLAIM FOR REFUND.—A
qualified airline employee who excludes an amount from gross

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144
income in a prior taxable year under paragraph (1) or (2) may
reflect such exclusion in a claim for refund filed within the period of limitation under section 6511(a) of such Code (or, if
later, April 15, 2013).
(4) OVERALL LIMITATION ON AMOUNTS TRANSFERRED TO
TRADITIONAL IRAS.—
(A) IN GENERAL.—The aggregate amount of airline payment amounts which may be transferred to 1 or more traditional IRAs under paragraphs (1) and (2) with respect to
any qualified employee for any taxable year shall not exceed the excess (if any) of—
(i) 90 percent of the aggregate airline payment
amounts received by the qualified airline employee during the taxable year and all preceding taxable years,
over
(ii) the aggregate amount of such transfers to
which paragraphs (1) and (2) applied for all preceding
taxable years.
(B) SPECIAL RULES.—For purposes of applying the limitation under subparagraph (A)—
(i) any airline payment amount received by the
surviving spouse of any qualified employee, and any
amount transferred to a traditional IRA by such spouse
under subsection (d), shall be treated as an amount received or transferred by the qualified employee, and
(ii) any amount transferred to a traditional IRA
which is attributable to net income described in paragraph (2) shall not be taken into account.
(5) COVERED EXECUTIVES NOT ELIGIBLE TO MAKE TRANSFERS.—Paragraphs (1) and (2) shall not apply to any transfer
by a qualified airline employee (or any transfer authorized
under subsection (d) by a surviving spouse of the qualified airline employee) if at any time during the taxable year of the
transfer or any preceding taxable year the qualified airline employee held a position described in subparagraph (A) or (B) of
section 162(m)(3) with the commercial passenger airline carrier
from whom the airline payment amount was received.
(b) TREATMENT OF AIRLINE PAYMENT AMOUNTS AND TRANSFERS
FOR EMPLOYMENT TAXES.—For purposes of chapter 21 of the Internal Revenue Code of 1986 and section 209 of the Social Security
Act, an airline payment amount shall not fail to be treated as a payment of wages by the commercial passenger airline carrier to the
qualified airline employee in the taxable year of payment because
such amount is excluded from the qualified airline employee’s gross
income under subsection (a).
(c) DEFINITIONS AND SPECIAL RULES.—For purposes of this section—
(1) AIRLINE PAYMENT AMOUNT.—
(A) IN GENERAL.—The term ‘‘airline payment amount’’
means any payment of any money or other property which
is payable by a commercial passenger airline carrier to a
qualified airline employee—
(i) under the approval of an order of a Federal
bankruptcy court in a case filed after September 11,
2001, and before January 1, 2007, and

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(ii) in respect of the qualified airline employee’s interest in a bankruptcy claim against the carrier, any
note of the carrier (or amount paid in lieu of a note
being issued), or any other fixed obligation of the carrier to pay a lump sum amount.
The amount of such payment shall be determined without
regard to any requirement to deduct and withhold tax from
such payment under sections 3102(a) of the Internal Revenue Code of 1986 and 3402(a) of such Code.
(B) EXCEPTION.—An airline payment amount shall not
include any amount payable on the basis of the carrier’s future earnings or profits.
(2) QUALIFIED AIRLINE EMPLOYEE.—The term ‘‘qualified airline employee’’ means an employee or former employee of a commercial passenger airline carrier who was a participant in a defined benefit plan maintained by the carrier which—
(A) is a plan described in section 401(a) of the Internal
Revenue Code of 1986 which includes a trust exempt from
tax under section 501(a) of such Code, and
(B) was terminated or became subject to the restrictions
contained in paragraphs (2) and (3) of section 402(b) of the
Pension Protection Act of 2006.
(3) TRADITIONAL IRA.—The term ‘‘traditional IRA’’ means
an individual retirement plan (as defined in section 7701(a)(37)
of the Internal Revenue Code of 1986) which is not a Roth IRA.
(4) ROTH IRA.—The term ‘‘Roth IRA’’ has the meaning given
such term by section 408A(b) of such Code.
(d) SURVIVING SPOUSE.—If a qualified airline employee died
after receiving an airline payment amount, or if an airline payment
amount was paid to the surviving spouse of a qualified airline employee in respect of the qualified airline employee, the surviving
spouse of the qualified airline employee may take all actions permitted under section 125 of the Worker, Retiree and Employer Recovery Act of 2008, or under this section, to the same extent that the
qualified airline employee could have done had the qualified airline
employee survived.
(e) EFFECTIVE DATE.—This section shall apply to transfers
made after the date of the enactment of this Act with respect to airline payment amounts paid before, on, or after such date.
SEC. 1107. TERMINATION OF EXEMPTION FOR SMALL JET AIRCRAFT
ON NONESTABLISHED LINES.
(a) IN GENERAL.—The first sentence of section 4281 is amended

by inserting ‘‘or when such aircraft is a jet aircraft’’ after ‘‘an established line’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable transportation provided after March 31, 2012.

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SEC. 1108. MODIFICATION OF CONTROL DEFINITION FOR PURPOSES
OF SECTION 249.
(a) IN GENERAL.—Section 249(a) is amended by striking ‘‘, or

a corporation in control of, or controlled by,’’ and inserting ‘‘, or a
corporation in the same parent-subsidiary controlled group (within
the meaning of section 1563(a)(1) as’’.
(b) CONFORMING AMENDMENT.—Section 249(b) is amended—
(1) by striking all that precedes ‘‘is the issue price’’ and inserting:

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‘‘(b) ADJUSTED ISSUE PRICE.—For purposes of subsection (a),
the adjusted issue price’’, and
(2) by striking paragraph (2).
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to repurchases after the date of the enactment of this
Act.
TITLE XII—COMPLIANCE WITH STATUTORY PAY-AS-YOUGO-ACT OF 2010
SEC. 1201. COMPLIANCE PROVISION.

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The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined
by reference to the latest statement titled ‘‘Budgetary Effects of
PAYGO Legislation’’ for this Act, jointly submitted for printing in
the Congressional Record by the Chairmen of the House and Senate
Budget Committees, provided that such statement has been submitted prior to the vote on passage in the House acting first on this
conference report or amendment between the Houses.
And the Senate agree to the same.
From the Committee on Transportation and Infrastructure, for consideration of the House bill and the Senate
amendment, and modifications committed to conference:
JOHN L. MICA,
THOMAS E. PETRI,
JOHN J. DUNCAN, Jr.,
SAM GRAVES,
BILL SHUSTER,
JEAN SCHMIDT,
CHIP CRAVAACK,
NICK J. RAHALL II,
PETER A. DEFAZIO,
JERRY F. COSTELLO,
LEONARD L. BOSWELL,
RUSS CARNAHAN,
From the Committee on Science, Space, and Technology,
for consideration of sections 102, 105, 201, 202, 204, 208,
209, 212, 220, 321, 324, 326, 812, title X, and title XIII of
the House bill and sections 102, 103, 106, 216, 301, 302,
309, 320, 327, title VI, and section 732 of the Senate
amendment, and modifications committed to conference:
RALPH M. HALL,
STEVEN M. PALAZZO,
EDDIE BERNICE JOHNSON,
From the Committee on Ways and Means, for consideration of title XI of the House bill and titles VIII and XI of
the Senate amendment, and modifications committed to
conference:
DAVE CAMP,
PATRICK J. TIBERI,
SANDER M. LEVIN,
Managers on the Part of the House.
JOHN D. ROCKEFELLER IV,
BARBARA BOXER,
BILL NELSON,

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MARIA CANTWELL,
KAY BAILEY HUTCHISON,
JOHNNY ISAKSON,
From the Committee on Finance:
MAX BAUCUS,
Managers on the Part of the Senate.

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JOINT EXPLANATORY STATEMENT OF
CONFERENCE

THE

COMMITTEE

OF

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

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House Bill
2011 through 2014.
Senate Bill
2010 through 2011.
(148)

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Conference Substitute
2012 through 2015.
TITLE I—AUTHORIZATIONS
AUTHORIZATION LEVELS ($ IN BILLIONS)

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

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House bill
Section 101(a) authorizes the Federal Aviation Administration’s (FAA) Airport Improvement Program (AIP) account at:
$3.176 billion for Fiscal Year (FY) 2011; $3 billion for FY 2012; and
$3 billion for FY 2013; and $3 billion for FY 2014. It prohibits the
use of AIP funds for carrying out the Airport Cooperative Research
Program or the Airports Technology Research Program and extends
the obligational authority to September 30, 2014. It makes funds
obligated in subsection (a) available until they are spent.
Section 102 authorizes the FAA’s Facilities and Equipment
(F&E) account at: $2.7 billion for FY 2011 and $2.6 billion for FYs
2012 through FY 2014. It removes references to the following accounts: enhanced safety and security for aircraft operations in the
Gulf of Mexico; operational benefits of wake vortex advisory system; ground based precision navigational aids; ground based precision navigation; standby power efficiency program; and a pilot program to provide incentives for development of new technologies.
Section 103 authorizes the FAA’s Operations account at:
$9.403 billion for FY 2011 and $9.168 billion for FYs 2012 through
FY 2014. It authorizes expenditures necessary for: the Air Traffic
Control Collegiate Training Initiative; completion of Alaska aviation safety project regarding 3-D mapping of main aviation corridors; and carrying out the Aviation Safety Reporting System. The
FAA’s expenditure authority is also extended through 2014. The
Secretary of Transportation is permitted to transfer funds from
non-safety related programs if appropriated funds are insufficient
to meet salary, operations, and maintenance expenses.
Senate bill
Section 101 authorizes the FAA’s Operations account at $9.336
billion in FY 2010 and $9.62 billion in FY 2011.
Section 102 authorizes the FAA’s Facilities and Equipment account at $3.5 billion in FY 2010, of which $500 million would be
derived from the newly-created Air Traffic System Modernization
Account (ATSMA); and $3.6 billion in FY 2011, of which $500 million would be derived from the new account established by this section.
Section 103 authorizes the FAA’s Research, Engineering and
Development (R,E,&D) account at $200 million in FY 2010 and
$206 million in FY 2011. It replaces current statutory language
in—§ 48102(a) (which has a breakdown of how the money should be
allotted) with the authorization levels only and strikes several
paragraphs for the R,E,&D account. It requires the FAA to establish a grant program to promote aviation research at undergraduate and technical colleges, including schools serving Histori-

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150
cally Black Colleges and Universities (HBCU) students, Hispanic,
Native Alaskan and Hawaiian populations.
Section 104 authorizes the FAA’s AIP account at $4.0 billion
for FY 2010 and $4.1 billion in FY 2011.
Conference Substitute
The conference committee agreed to the following funding levels:
Section 101 authorizes the FAA’s Airport Improvement Program (AIP) account at $3.35 billion for FY 2012 through FY 2015.
Section 102 authorizes the FAA’s Facilities and Equipment
(F&E) account at: $2.731 billion for FY 2012, $2.715 for FY 2013,
$2.730 billion for FY 2014 and FY 2015.
Section 103 authorizes the FAA’s Operations account at:
$9.653 billion for FY 2012, $9.539 billion for FY 2013, $9.596 billion for FY 2014, and $9.653 billion for FY 2015.
Section 901 authorizes the FAA’s Research Engineering and
Development (R,E,&D) account at $168 million annually for FY
2012 through 2015.
FUNDING OF AVIATION PROGRAMS

H104/S105
House bill
Section 104 modifies the formula that determines the amount
made available from the Airport and Airways Trust Fund (Trust
Fund) each year to fund the FAA. The section requires the Trust
Fund support for aviation programs in FY 2011 be equal to 90 percent of the estimated Trust Fund revenue (taxes plus interest). In
FY 2012, FY 2013 and FY 2014, the Trust Fund appropriation
should equal the sum of 90 percent of the estimated Trust Fund
revenue, plus the difference between actual revenue and the Trust
Fund appropriation in the second preceding fiscal year. It extends
the authorization of appropriations for the general fund to 2014
and makes technical corrections by striking ‘‘level’’ and inserting
‘‘estimated level’’ and by striking ‘‘level of receipts plus interest’’
and replacing it with ‘‘estimated level of receipts plus interest.’’
Lastly, it amends enforcement of guarantees by inserting 2014 in
place of 2007.
Senate bill
Section 105 extends the budgetary treatment for the FAA’s accounts through FY 2011.

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Conference Substitute
House bill modified by moving the dates in the bill forward by
one year.

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151
DELINEATION OF NEXT GENERATION AIR TRANSPORTATION SYSTEMS

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

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

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

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Conference Substitute
House bill.

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152
AIRPORT ACCESS FLEXIBILITY PROGRAM

H112/S201(a)
House bill
Section 112 establishes a pilot program, at no more than five
airports, for off-airport intermodal ground access projects related to
movement of airport passengers/property, subject to certain conditions.
Senate bill
Section 201(a) streamlines the administrative requirements associated with PFCs, while retaining audit controls and FAA project
and expenditure oversight. It provides requirements on any airport
authority wishing to increase its PFC, or wishing to impose a PFC
to finance an intermodal ground facility.
Conference Substitute
No provision.
GAO STUDY OF ALTERNATIVE MEANS OF COLLECTING PFCS

H114(a),113/S202
House bill
Section 114(a) defines ‘‘qualifications-based selection’’ (QBS) as
a competitive procurement process under which firms compete for
capital improvement projects on the basis of qualifications, past experience, and specific expertise.
Section 113 instructs the U.S. Government Accountability Office (GAO) to conduct a study of alternative means of PFC collection to allow such charges be collected without being included in
the ticket price.
Senate bill
Section 202 requires a pilot program for direct collection of
PFCs via the internet or other means, except through air carriers,
under which there would be no cap on the PFC. The GAO is directed to conduct a study of potential alternative means of PFC collection.
Conference Substitute
House bill modified by dropping definition of QBS.
QUALIFICATIONS-BASED SELECTION

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H114(b)/S—
House bill
Section 114(b) expresses the sense of Congress that airports
should consider the use of qualifications-based selection in carrying
out capital improvement projects using PFCs collected with the
goal of serving the needs of all stakeholders.

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153
Senate bill
No similar provision.
Conference Substitute
House bill.
REFORM AND STREAMLINING OF PFC AUTHORITY AND COLLECTION

H—/S201(a)
House bill
No similar provision.
Senate bill
Section 201(a) eliminates the existing statutory requirement
that PFC funding may only be used for airport capital projects that
preserve or enhance airport capacity, safety, or security, or reduce
noise. It expedites the PFC application process by directing collection to begin upon filing of annual reports containing required information and after consultation with carriers and public notice requirements instead of waiting for FAA approval of each PFC application. This section establishes a process for filing objections to a
PFC project, and allows the Secretary of Transportation to investigate excessive PFC collections or for revenue not being used per
law. It provides exceptions to new processes used for intermodal
ground access projects and for an increase in PFC, both of which
require prior FAA approval before collection.
Conference Substitute
House bill.
TECHNICAL AMENDMENTS AND PFC PILOT PROGRAM AT NON-HUB
AIRPORTS

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

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H—/S207(b)
House bill
No provision.

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154
Senate bill
Section 207(b) prohibits PFCs from being used to construct bicycle storage facilities.
Conference Substitute
House bill.
UPDATE ON OVERFLIGHTS

H121/S706
House bill
Section 121 requires the FAA to guarantee existing overflight
fees are reasonably related to agency costs for providing air traffic
services, and requires the FAA to adjust the fees and begin collection of the appropriate amount. The FAA is authorized to periodically modify the fee based on the cost of providing such service.
Senate bill
Section 706 is similar to the House provision, but it directs the
FAA to establish an Aviation Rulemaking Committee (ARC) to review overflight fees which the FAA must consult with before making any adjustments to the fees or collection is made.
Conference Substitute
House bill modified by removing language creating a special
rule for FYs 2011 through 2015 which specified that ‘‘in each of fiscal years 2011 through 2015, section 45303(c) shall not apply to
any increase in fees collected pursuant to a final rule described in
paragraph (4)’’ and by removing language to issue a final rule with
respect to the NPRM published in the Federal Register on September 28, 2010.
REGISTRATION FEES

H122/S—
House bill
Section 122 requires the FAA to establish fees for registration,
certification and related services. It specifies amounts for such fees
in the provision for eleven services, and requires the FAA to periodically adjust the fees when cost data reveal that the cost of providing the service changes. Lastly, it specifies that fees should be
treated as offsetting collections subject to appropriations.
Senate bill
No similar provision.

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Conference Substitute
House bill, but with no amounts specified for the fees.

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155
AIRPORT MASTER PLANS

H131/S—
House bill
Section 131 requires that airport master plans and systems include in their goals a requirement to consider passenger convenience, airport ground access, and access to airport facilities.
Senate bill
No similar provision.
Conference Substitute
House bill.
AEROTROPOLIS TRANSPORTATION SYSTEMS

H132/S3—
House bill
Section 132 directs the Secretary of Transportation to encourage development of aerotropolis transportation systems, which are
planned and coordinated multimodal freight and passenger transportation networks that provide efficient, cost-effective, sustainable, and intermodal connectivity to a defined region of economic
significance centered around a major airport, as determined by the
Secretary.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
AIRPORT IMPROVEMENT PROGRAM (AIP) DEFINITIONS

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H133/S208(j),215,714(a)
House bill
Section 133(a)(1) broadens eligibility for AIP spending to include firefighting and revenue equipment at an airport that serves
scheduled passenger operations of air carrier aircraft designed for
more than nine passengers instead of the current limit of 20.
Section 133(a)(2) allows AIP funds to be used for glycol recovery vehicles.
Section 133(a)(3) permits AIP funds to be used for mobile refueler parking within a fuel farm at a non-primary airport, if required by an Environmental Protection Agency (EPA) rule, terminal development costs, air conditioning/heating/electricity from
terminal facilities, and equipment for parked aircraft to reduce energy consumption.
Section 133(b) amends the definition of airport planning to include an environmental management system and recycling.
Section 133(c) defines ‘‘general aviation airport.’’

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156
Section 133(d) defines ‘‘revenue producing aeronautical support
facilities,’’ which allows non-primary airports to use their entitlements to build or rehabilitate new facilities that can help generate
revenue.
Section 133(e) redefines ‘‘terminal development’’ to include development of an airport passenger terminal building, including
gates and access roads and walkways.
Senate bill
Section 208(j) is the same provision as House section 133(a)(3).
Section 215 is the same provision as House section 133(a)(2).
No similar provision.
No similar provision.
Section 714(a) is the same provision as House section 133(b).
No similar provision.
No similar provision.
Conference Substitute
House bill.
RECYCLING PLANS FOR AIRPORTS

H134/S714(b)
House bill
Section 134 requires airport master plans to: address the feasibility of solid waste recycling at an airport, minimizing the generation of waste, operation and maintenance requirements, the review
of waste management contracts, and the potential for cost savings
or the generation of revenue.
Senate bill
Section 714(b) is a similar provision, but includes additional requirements for master plans.
Conference Substitute
House bill.
CONTENTS OF COMPETITION PLANS

H135/S—
House bill
Section 135 removes requirements for ‘‘patterns of air services’’
and ‘‘airfare levels (as compiled by DOT) compared to other large
airports’’ from the requirements of a competition plan for PFC
charges.

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Senate bill
No similar provision.
Conference Substitute
House bill.

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157
GRANT ASSURANCES

H136/S203
House bill
Section 136(a),(b) permits the Secretary of Transportation to
allow grants to be used for relocating or replacing existing airport
facilities.
Section 136(b)(1) revises requirements on acquiring lands to
permit an airport to keep any funds obtained from the sale of lands
acquired for noise compatibility purposes and reinvest those funds
in the airport or transfer those funds to another airport consistent
with the statute. It removes a requirement to return the proportion
equal to the government share in acquiring the land to the Secretary.
Section 136(b)(2) sets the priorities which apply to the Secretary’s decision to approve reinvestment or transfer of proceeds
from the sale of land acquired for noise compatibility. Priorities
are: 1) reinvestments in an approved noise compatibility project; 2)
reinvestment in an approved project that is eligible for funding; 3)
reinvestment in an approved airport development project that is eligible for funding under § 47114, 47115, or 47117; 4) transfer to a
sponsor of another public airport to be reinvested in an approved
noise compatibility project; and 5) deposit into the Airport and Airway Trust Fund.
Section 136(c) makes a technical correction to 47107(e)(2)(iii)
by deleting ‘‘the Fund’’ and inserting ‘‘the Airport and Airway Trust
Fund established under section 9502 of the Internal Revenue Code
of 1986.’’
Section 136(d) makes the Competition Disclosure Requirement
pilot program permanent. No similar provision.

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Senate bill
Section 203 is a similar provision.
Section 203 is similar, but allows airports that receive improvement grants for the purchase of land to lease the land and develop the land in a manner compatible with noise buffering purposes.
Section 203 adds that a lease by an airport owner or operator
of land acquired for a noise compatibility purpose using an improvement grant will not be considered a disposal, and allows revenues from the lease to be used for ongoing airport operational and
capital purposes.
No similar provision.
No similar provision.
Section 203 adds the phrase ‘‘serving as noise buffer land’’ to
clarify that such land is one of the land acquisitions subject to disposal at the earliest practicable time after it is no longer needed
for the intended noise compatibility purpose.
Conference Substitute
House bill with the language from the Senate bill section 203
related to ‘‘serving as noise buffer land’’ added.

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158
AGREEMENTS GRANTING THROUGH-THE-FENCE ACCESS TO GENERAL
AVIATION AIRPORTS

H137/S—
House bill
Section 137 requires that the sponsor of a general aviation airport will not be in violation of a grant assurance as a condition for
the receipt of federal funds solely because the sponsor entered into
an agreement to allow a person, who owns residential real property
adjacent to the airport, access to the airfield of the airport.
Senate bill
No similar provision.
Conference Substitute
House bill modified to include language in the agreement between an airport sponsor and a property owner prohibiting any aircraft refueling from occurring on that property, and includes a definition of ‘‘general aviation airport’’.
GOVERNMENT SHARE OF PROJECT COSTS

H138/S204,207
House bill
Section 138 adds a special rule for transition from small hub
to medium hub which limits the government share of funding to 90
percent for the first two years following the change in status. The
government share is set at 95 percent for a project at an airport
that is receiving subsidized air service and is located in an area
that meets one or more of the criteria for economically depressed
communities established by the Secretary of Commerce.
Senate bill
Section 204(a) establishes a special rule to allow for small hub
airports that have increased operations and therefore are being reclassified as medium hub airports to retain their eligibility for two
years at up to a 95 percent government share of projects costs.
Section 204(b) extends the project cost for transitioning Airport
Improvement Project (AIP) projects through FY 2011.
Section 207 sets the government share at 95 percent for certain projects at small airports if it is funded by a grant issued to,
and administered, by a State under the State block grant program
or for any project at an airport other than a primary airport having
at least 0.25 percent of the total number of passenger boardings at
all commercial service airports.

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Conference Substitute
House bill.

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ALLOWABLE PROJECT COSTS

H139/S214,205

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

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such radar systems will not improve or will negatively impact airport safety, the Administrator shall issue a report explaining that
determination.
Conference Substitute
House bill with the inclusion of Senate language on bird radar
systems and short construction season.
VETERANS’ PREFERENCE

H140/S208(b)
House bill
Section 140 amends the definition of ‘‘Vietnam-era veteran’’
and adds veterans from the Afghanistan/Iraq conflict and Persian
Gulf War to the definition of those veterans eligible for employment
preference on Airport Improvement Program (AIP) projects. It adds
a provision requiring that a contract involving labor for carrying
out an airport development project under a grant agreement include a preference for the use of small business concerns owned
and controlled by disabled veterans.
Senate bill
Section 208(b) is a similar provision.
Conference Substitute
House bill.
MINORITY AND DISADVANTAGED BUSINESS PARTICIPATION

H141,822/S715,703

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House bill
Section 141 requires the Secretary to establish, within a year
of enactment, a mandatory training program for certain airport
agents or officials on certifying whether a small business concern
qualifies as a small business concern owned and controlled by socially and economically disadvantaged individuals under the Disadvantaged Business Enterprise (DBE) Program.
Section 822 requires the Inspector General of the Department
of Transportation (DOT IG) to report on the number of new small
business concerns owned and controlled by socially and economically disadvantaged individuals, including those owned by veterans, that participated in the programs and activities funded
using the amounts made available under this Act.
No similar provision.
No similar provision.
Senate bill
Section 715(c) is a similar provision to House section 141.
Section 703 authorizes the appointment of three staff to implement the training program.
Section 715(a), (b), (d), (e), (f) adjusts the personal net worth
cap for individuals participating in the DBE program.

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Section 715(g) directs the Secretary to create a program to
eliminate barriers to small business participation in contract and
issue a final rule within one year of enactment.
Conference Substitute
The conference committee agreed to a modified and merged
version of House and Senate bills, including findings of the Senate
bill, with clarifications, recounting evidence of discrimination and
concluding that a compelling need exists for continuation of the airport disadvantaged business enterprise (DBE) program and the airport concessions DBE program.
SPECIAL APPORTIONMENT RULES

H142/S208(i), (h)
House bill
Section 142(a) gives the Secretary of Transportation authority
to apportion to an airport sponsor in a fiscal year an amount equal
to the minimum apportionment available to the airport sponsor in
the previous fiscal year, if the airport received scheduled or unscheduled air service from a large certificated carrier in the calendar year used to calculate the apportionment, and the airport
had more than 10,000 passenger boardings in the calendar year
used to calculate the apportionment.
Section 142(b) continues a special apportionment for airports
that remain affected by the decrease in passengers following the
terrorist attacks of September 11, 2001, through 2012.
No similar provision.
Senate bill
Section 208(i) is a similar provision to House section 142(a)
and (b).
Section 208(h) amends the special apportionment categories by
change the special apportionment from ‘‘thirty five percent’’ to a
fixed amount of ‘‘$300 million’’ annually for grants for various airport noise, compatible land use, and Clean Air Act compliance
projects. It adds certain water quality mitigation projects to those
on which such funds may be expended.
Conference Substitute
House Bill, section 142 with modified dates changed from
‘‘2011 and 2012’’ to ‘‘2012 and 2013’’, and Senate section 208(h)
modified with the substitution of ‘‘35 percent, but not more than
$300 million’’.
UNITED STATES TERRITORIES MINIMUM GUARANTEE

pwalker on DSK7TPTVN1PROD with REPORTS

H143/S—
House bill
Section 143 directs the Secretary of Transportation to apportion AIP amounts for airports in Puerto Rico, does not prohibit the
Secretary from making project grants for airports in Puerto Rico
from discretionary funds.

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Senate bill
No similar provision.
Conference Substitute
House bill modified to include language that addresses Puerto
Rico and other U.S. territories.
APPORTIONMENT

H144/S—
House bill
Section 144 resets the apportionment trigger from $3.2 billion
to $3 billion.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
REDUCING APPORTIONMENTS

H145/S—
House bill
Section 145 addresses inequitable application of apportionment
fees charged to passengers in the state of Hawaii.
Senate bill
No similar provision.
Conference Substitute
House bill.
MARSHALL ISLANDS, MICRONESIA, AND PALAU

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

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS

H147/S220, 212
House bill
Current law allows the Secretary of Transportation to designate current or former military airports eligible for grants under
the Military Airport Program (MAP). Section 147(a) adds to the
items that must be considered to approve a grant the requirement
that it preserves or enhances minimum airfield infrastructure facilities at former military airports to support emergency diversionary operations for transoceanic flights in locations in U.S. jurisdiction or control, and where there is a lack of airports within the
distance required by regulations.
Section 147(b) allows up to three general aviation airports to
participate in the FAA’s Military Airport Program.
Section 147(c) makes current or former military airports eligible to be considered for AIP funding if that airport is found to be
critical to the safety of trans-oceanic air traffic.
Senate bill
No similar provision.
Section 220 is a similar provision to House section 147(b) and,
however it allows a total of three general aviation airports to participate in the Military Airport Program.
Section 212 is a similar provision to House section 147(c).
Conference Substitute
House bill modified.
CONTRACT TOWER PROGRAM

pwalker on DSK7TPTVN1PROD with REPORTS

H148/S432
House bill
Section 148(a) directs the Secretary of Transportation to extend the low activity (Visual Flight Rules) level I air traffic control
tower (ATC) contract program to other low-activity towers meeting
the requirements set forth by the Secretary of Transportation
where the airport operator has requested to participate in the program.
Section 148(a) also adds a special rule which alleviates the responsibility of the airport sponsor or State or local government to
paying the portion of the costs that exceed the benefits for a period
of 18 months after the Secretary determines that a level I tower
operating under this program has a benefit to cost ratio of less
than 1.0.
Section 148(b) caps the maximum allowable cost share for an
airport with fewer than 50,000 annual passenger enplanements at
20 percent of the cost of operating an ATC tower under the contract tower program, and sunsets this requirement on September
30, 2014.
Section 148(b) also permits the Secretary to use excess funds
from the contract tower program intended for level I towers to fund
activities for non-approach contract towers.

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Section 148(c) increases the maximum amount of funds that
can be expended in carrying out the Contract Tower Program for
non-approach contract towers at not more than $8.5 million for
each of FYs 2011 through 2014.
Section 148(d) increases the limitation on the amount of the
federal share of the cost of construction of a non-approach control
tower from $1.5 million to $2 million.
Section 148(e) requires the establishment of uniform safety
standards and requirements for safety assessments of ATC towers
that receive funding.
Senate bill
Section 432(b) is the same provision as House section 148(b)
but caps the maximum allowable local share at 20 percent.
Section 432(a) is the same provision as House section 148(a).
Section 432(c) is a similar provision to House section 148(c),
but it specifies that not more than $9.5 million in FY 2010 and not
more than $10 million in FY 2011 can be used.
Section 432(d) is the same provision as House section 148(d).
Section 432(e) is the same provision as House section 148(e).
Conference Substitute
House bill modified by adjusting the authorization levels, and
by deleting: (1) language capping the local cost share at 20 percent:
and (2) provisions requiring the Secretary of Transportation to expand the Contract Tower Program. Under the agreement (in the
modified section), the Secretary retains the authority to expand the
program.
RESOLUTION OF DISPUTES CONCERNING AIRPORT FEES

H149/S431
House bill
Section 149 updates current law that addresses the resolution
of disputes concerning airport fees by the Secretary of Transportation to include foreign air carriers in payment by airports under
protest.
Senate bill
Section 431 is the same provision.
Conference Substitute
House bill.
SALE OF PRIVATE AIRPORT TO PUBLIC SPONSOR

pwalker on DSK7TPTVN1PROD with REPORTS

H150/S206
House bill
Section 150(a) exempts funds from the sale of an airport to a
public sponsor from use restrictions. This exemption applies where
the Secretary of Transportation approves the sale, federal grants
are provided for any portion of the public sponsor’s acquisition of

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the airport, and certain amounts of remaining airport improvement
grants are repaid to the Secretary.
Section 150(a) also specifies that recovery of grant funds are
treated as recovery of prior year obligations.
Section 150(b) specifies that this section is applicable to grants
issued on or after October 1, 1996.
Senate bill
Section 206 is a similar provision to House section 150(a), but
it specifies that proceeds are repaid to the Airport and Airway
Trust Fund for airport acquisitions.
No similar provision.
Section 206 is an identical provision to House section 150(b).
Conference Substitute
House bill.
REPEAL OF CERTAIN LIMITATIONS ON METROPOLITAN WASHINGTON
AIRPORTS AUTHORITY (MWAA)

H151/S718
House bill
Section 151 repeals the limitations on Metropolitan Washington Aviation Authority to apply for Airport Improvement Program grants and collect Passenger Facility Charges.
Senate bill
Section 718 is a similar provision.
Conference Substitute
House bill.
MIDWAY ISLAND AIRPORT

H152/S704(b)
House bill
Section 152 provides a four-year extension for the Secretary of
Transportation to enter into a reimbursable agreement with the
Secretary of the Interior to provide AIP discretionary funds for airport development projects at Midway Island Airport through FY
2014.
Senate bill
Section 704(b) is a similar provision, but the extension would
expire at the end of the term of the Senate bill in FY 2011.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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MISCELLANEOUS AMENDMENTS

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

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House bill
Section 153(a) makes a technical change to requirements for
the National Plan of Integrated Airport Systems (NPIAS), which
comprises all commercial service airports, all reliever airports, and
selected general aviation airports.
Section 153(b) permits the Secretary of Transportation to approve a project for terminal development (including multimodal terminal development) in a nonrevenue-producing public-use area of
a commercial service airport if the sponsor certifies that the airport: (1) has all the safety equipment required and security equipment required by regulation; (2) provides access for passengers to
the area of the airport boarding or exiting aircraft that are not air
carrier aircraft; (3) costs are directly related to moving passengers
and baggage in air commerce within the airport; and (4) meets the
terms necessary to protect the interest of the government.
Section 153(b) directs the Secretary to approve as allowable
costs of terminal development (including multimodal terminal development) in a revenue-producing area and construction, reconstruction, repair and improvement in a non-revenue producing
parking lot under certain circumstances.
Section 153(b) prohibits the Secretary from distributing more
than $20 million from discretionary funds for terminal development
projects at a non-hub airport or a small hub airport that is eligible
to receive discretionary funds.
Section 153(c) makes technical changes to the annual reporting
requirements by moving the due date to June 1 of each year. Also,
it removes the first four report requirements and replaces them
with: (1) a summary of airport development and planning completed; (2) a summary of individual grants issued; (3) an accounting
of discretionary and apportioned funds allocated; and (4) the allocation of appropriations.
Section 153(d) makes a technical correction to the emission
credits provision.
Section 153(e) makes a technical correction to section
§ 46301(d)(2).
Section 153(f) makes a conforming amendment to
§ 40117(a)(3)(B) and 47108(e)(3).
Section 153(g) makes a technical correction to the surplus
property authority section.
Section 153(h) updates the definition of ‘‘Congested Airport’’ to
include the FAA’s Airport Capacity Benchmark Report of 2004 ‘‘or
table 1 of the Federal Aviation Administration’s most recent airport
capability benchmark report, as well as the definition of ‘‘Joint Use
Airport’’.
Senate bill
Section 208(a) is the same as House section 153(a).
No similar provision.
No similar provision.
No similar provision.

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167
Section 208(c) is the same as House section 153(c).
Section 208(e) is the same as House section 153(d).
No similar provision.
Section 208(f) is a similar to House section 153(g).
Section 208(g) is a similar to House section 153(h), but changes
definition for ‘‘Joint Use Airport’’.
Conference Substitute
House bill.
EXTENSION OF GRANT AUTHORITY FOR COMPATIBLE LAND USE
PLANNING AND PROJECTS BY STATE AND LOCAL GOVERNMENTS

H154/S—
House bill
Section 154 extends the grant authority for compatible land
use planning and projects by State and local governments until
September 30, 2014.
Senate bill
No similar provision.
Conference Substitute
House bill.
PRIORITY REVIEW OF CONSTRUCTION PROJECTS IN COLD WEATHER
STATES

H155/S724
House bill
Section 155 instructs the Administrator to schedule reviews of
construction projects that are prevented by weather from being carried out before May 1 of each year, or as early as possible.
Senate bill
Section 724 directs the Administrator to review, as early as
possible, proposed airport projects in those states where, during a
typical calendar year, construction could not begin until May 1.
Conference Substitute
House bill.
STUDY ON NATIONAL PLAN OF INTEGRATED AIRPORT SYSTEMS (NPIAS)

pwalker on DSK7TPTVN1PROD with REPORTS

H156/S—
House bill
Section 156 requires the Secretary of Transportation to study
and evaluate the formulation of the National Plan of Integrated
Airport Systems (NPIAS) and report to Congress on the findings
and recommended changes for formulating the NPIAS and methods
to determining the amounts apportioned to airports. The study is
to address the following: 1) criteria used for including airports in
the plan; 2) changes in airport capital needs as shown in the 2005–

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2009 and 2007–2011 plans, compared with the amounts apportioned or otherwise made available to individual airports between
2005 and 2010; 3) a comparison of the amounts received by airports
under the AIP in airport apportionments, State apportionments,
and discretionary grants during fiscal years with capital needs as
reported in the plan; 4) the effect of transfers of airport apportionments under title 49 United States Code (U.S.C.); 5) an analysis on
the feasibility and advisability of apportioning amounts under
47114(c)(1) to the sponsor of each primary airport for each fiscal
year an amount that bears the same ratio to the amount subject
to the apportionment for FY 2009 as the number of passenger
boardings at the airport during the prior calendar year bears to the
aggregate of all passenger boardings at all primary airports during
that calendar year; 6) a documentation and review of the methods
used by airports to reach the 10,000 passenger enplanement
threshold; and 7) any other matters pertaining to the plan that the
Secretary determines appropriate.
Senate bill
No similar provision.
Conference Substitute
House bill.
TRANSFERS OF TERMINAL AREA AIR NAVIGATION EQUIPMENT TO
AIRPORT SPONSORS

H157/S—
House bill
Section 157 establishes a pilot program to allow the Administrator to transfer terminal area air navigation equipment to airport
sponsors at a specified number of airports. The airport sponsors
must assure the Administrator that the sponsors will operate and
maintain the equipment, permit inspections by the Administrator,
and will replace equipment as needed. This transfer will include all
rights, title and interests of the U.S. to the sponsor at no cost to
the sponsor.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
AIRPORT PRIVATIZATION PROGRAM

pwalker on DSK7TPTVN1PROD with REPORTS

H158/S—
House bill
Section 158(a) amends current law relating to specific provisions for issuance of exemptions in connection with a transfer of
airport operation to a private owner. This section authorizes the
Secretary of Transportation to expand the number of airports from
five to ten airports. The Secretary is authorized to exempt the sell-

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169
ing airport sponsor from the revenue diversion prohibition after the
Secretary has consulted the air carrier serving the primary airport,
and in the case of non-primary airport, with at least 65 percent of
owners of aircraft based at that airport (thereby eliminating the existing requirement that the selling airport sponsor obtain the approval of at least 65 percent of the air carriers serving the airport
before the revenue diversion prohibition can be waived.)
Section 158(b) removes the requirement that the Secretary
must ensure that the airport fee imposed on air carriers will not
increase more than inflation; the percent increase on fees to general aviation will not exceed the percentage of fees imposed on air
carriers; and collective bargaining agreements will not be abrogated by sale or lease. It prohibits an airport from imposing a fee
on a domestic or foreign air carrier for a return on investment or
recovery of principal with respect to consideration paid to public
agency for the lease unless the air carriers approve.
Senate bill
No similar provision.
Conference Substitute
House bill modified by dropping all language except language
on expansion of the airport privatization program from five to ten
airports.
AIRPORT SECURITY PROGRAM

H—/S208(d)
House bill
No similar provision.
Senate bill
Section 208(d) sunsets the Airport Security Program.
Conference Substitute
House bill.
MINIMUM GUARANTEE

H—/S217
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 217 amends the Alaska minimum guarantee to permit
the Secretary of Transportation to apportion to the local authority
of a U.S. Territory the difference between the amount apportioned
to the territory and 1.5 percent of the total amount apportioned to
all airports under subsections (c) and (d) of 47144.
Conference Substitute
Senate bill provision incorporated in the section entitled
‘‘United States territories minimum guarantee’’.

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170
RESEARCH IMPROVEMENT FOR AIRCRAFT

H—/S216
House bill
No similar provision.
Senate bill
Section 216 expands the type of research that the Administrator may conduct or supervise to include research to support programs designed to reduce gases and particulates emitted by aircraft.
Conference Substitute
House bill.
MERRILL FIELD AIRPORT, ANCHORAGE, ALASKA

H—/S218
House bill
No similar provision.
Senate bill
Section 218 modifies current federal restrictions at Merrill
Field Airport in Anchorage, Alaska to facilitate airport and federal
highway development.
Conference Substitute
Senate bill dropped due to the inclusion of language addressing
this provision in the section entitled ‘‘Release from Restrictions’’.
INCLUSION OF MEASURES TO IMPROVE THE EFFICIENCY OF AIRPORT
BUILDINGS

H—/S222
House bill
No similar provision.
Senate bill
Section 222 specifies that AIP funds can be used for updating
buildings to meet high-performance green building standards.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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171
TITLE II—NEXT GENERATION AIR TRANSPORTATION
SYSTEM AND AIR TRAFFIC CONTROL MODERNIZATION
DEFINITIONS

H201/S327
House bill
Section 201 defines the terms: ‘‘NextGen,’’ ‘‘Automatic Dependent Surveillance Broadcast (ADS–B)’’, ‘‘ADS–B In’’, ‘‘ADS–B Out,’’
‘‘Area Navigation (RNAV)’’, and ‘‘Required Navigation Performance
(RNP).’’
Senate bill
Section 327 sets out definitions for ‘‘Administration’’, ‘‘Administrator’’, ‘‘NextGen,’’ and the ‘‘Secretary’’.
Conference Substitute
House bill.
NEXTGEN DEMONSTRATIONS AND CONCEPTS

H202/S—
House bill
Section 202 directs the Secretary of Transportation when allocating funds to give priority to NextGen-specific programs.
Senate bill
No similar provision.
Conference Substitute
House bill with minor modification.
CLARIFICATION OF AUTHORITY TO ENTER INTO REIMBURSABLE
AGREEMENTS

H203/S304
House bill
Section 203 clarifies FAA’s existing authority to perform work
for other agencies with or without reimbursement.
Senate bill
Section 304 is a similar provision.
Conference Substitute
House bill.
CHIEF NEXTGEN OFFICER

pwalker on DSK7TPTVN1PROD with REPORTS

H204/S302,301
House bill
Section 204 establishes a new position within the FAA—the
Chief NextGen Officer (CNO)—who would be responsible for the

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

H205/S310
House bill
Section 205 updates and broadens the definition of an air navigation facility to clarify that F&E funding may be used for many
capital expenses directly related to the acquisition or improvement
of buildings, equipment, and new systems related to the national
airspace system and NextGen.
Senate bill
Section 310 is a similar provision.
Conference Substitute
House bill.
CLARIFICATION TO ACQUISITION REFORM AUTHORITY

H206/S305
House bill
Section 206 repeals a provision with limits on ‘‘other than competitive procedures’’ that conflicts with the FAA’s 1996 procurement reform.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 305 is a similar provision.
Conference Substitute
House bill.

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ASSISTANCE TO FOREIGN AVIATION AUTHORITIES

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

pwalker on DSK7TPTVN1PROD with REPORTS

H208/S309(a)
House bill
Section 208(a) elevates the Director of the Joint Planning and
Development Office (JPDO) to the level of Associate Administrator
for NextGen, reporting directly to the Administrator. The responsibilities of the Director will include: 1) establishing specific quantitative goals for the safety, capacity, efficiency, performance, and
environmental impacts of each phase of NextGen planning and development activities; 2) working to ensure global interoperability of
NextGen; 3) working to ensure the use of weather information and
space weather information in NextGen as soon as possible; 4) overseeing, with the Administrator and in consultation with the Chief
NextGen Officer (CNO), the selection of products or outcomes of
Research, Engineering and Development activities that should be
moved to a demonstration phase; and 5) maintaining a baseline
modeling and simulation environment for testing and evaluating
alternative concepts to satisfy NextGen enterprise architecture requirements.
Section 208(a) directs the Associate Administrator for NextGen
to also be a voting member on the Joint Resources Council.
Section 208(a) requires the JPDO to coordinate NextGen activities with OMB.
Section 208(a) requires the Department of Defense (DOD), Department of Homeland Security (DHS), Department of Commerce,
and the National Aeronautics and Space Administration (NASA) to
designate a senior official to work with the FAA on NextGen implementation.
Section 208(b) requires the JPDO to develop an Integrated
Work Plan that will outline the activities required by partner agencies to achieve NextGen.
Section 208(c) directs FAA to annually publish a NextGen Implementation Plan.

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Section 208(d) requires the head of JPDO to develop contingency plans for dealing with the degradation of the system in the
event of a disaster or failure.
Senate bill
No similar provision.
No similar provision.
No similar provision.
Section 309(a) is a similar provision as House section 208(a),
but creates a NextGen Implementation Office, which will be established by FAA, DOD, NASA, Commerce, DHS and other applicable
agencies.
No similar provision.
No similar provision.
No similar provision.
Conference Substitute
House bill.
NEXT GENERATION AIR TRANSPORTATION SENIOR POLICY COMMITTEE

H209/S309(b)
House bill
Section 209 requires each agency involved in implementing
NextGen initiatives to participate in an Air Transportation Senior
Policy Committee. This committee will meet biannually and will be
responsible for producing an annual report summarizing the
progress made in carrying out the NextGen integrated work plan.
The Secretary of Transportation is directed to publish an annual
report on the date of submission of the President’s Budget, summarizing the progress made in carrying out the integrated work plan.
Senate bill
Section 309(b) is a similar provision but with a requirement
that the Senior Policy Committee meet once each quarter.
Conference Substitute
House bill.
IMPROVED MANAGEMENT OF PROPERTY INVENTORY

H210/S311

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

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Conference Substitute
House bill.
AUTOMATIC DEPENDENT SURVEILLANCE BROADCAST SERVICES

H211/S315
House bill
Section 204 requires an annual audit by the DOT IG of the
FAA’s ADS–B program to assist Congress in creating FAA accountability for implementing the ADS–B program. It directs the Administrator to initiate a rulemaking proceeding within one year after
the date of enactment to issue guidelines and regulations relating
to ADS–B In technology. Requires the Chief NextGen Officer to
verify that the necessary ground infrastructure is installed and
functioning properly, certification standards have been approved,
and appropriate operational platforms interface safely and efficiently before the date on which all aircraft are required to be
equipped with ADS–B In technology. The Administrator is directed
to develop, in consultation with employee and industry groups,
plans for the use of ADS–B technology, including testing, controller
training, and policy for early aircraft equipage.
Senate bill
Section 315 is a similar provision, but requires a defined budget and the identification of actual benefits to national airspace system (NAS) users including small and medium-sized airports and
the general aviation community. It requires two rulemakings by
the FAA: 1) to complete a rulemaking procedure within 45 days of
enactment and mandate that all aircraft should be equipped with
ADS–B Out technology by 2015; and 2) to initiate a rulemaking
procedure on ADS–B In technology and require all aircraft to be
equipped with ADS–B In by 2018. The FAA is required to create
a plan for ADS–B technology use by air traffic control by 2015, including a test of ADS–B prior to 2015 within the plan. It sets conditional extensions of the deadline for equipping aircraft with
ADS–B technology.
Conference Substitute
House bill modified to include an additional requirement in the
DOT IG review to identify ‘‘any potential operational or workforce
changes resulting from deployment of ADS–B’’.
ACCELERATION OF NEXTGEN TECHNOLOGIES

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H213/S314,510
House bill
Section 213(a) requires the Administrator to publish a report
within six months (but after consultation with employee groups)
that includes how FAA will develop: 1) Area Navigation and Required Navigation Performance (RNAV/RNP) procedures at 35
Operational Evolution Partnership (OEP) airports identified by
FAA; 2) a description of requirements to implement them; 3) an implementation plan; 4) an assessment of the cost/benefit for using

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pwalker on DSK7TPTVN1PROD with REPORTS

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

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Conference Substitute
House bill modified to change language to separate OEP and
non-OEP airports to establish separate timelines and milestones, to
require the FAA to provide a categorical exclusion for RNP/RNAV
procedures that would lead to a reduction in aircraft fuel consumption, emissions and noise on an average per flight basis, and to direct the Administrator to establish a program under which the Administrator is authorized to utilize the services of qualified third
parties in the development, testing, and maintenance of flight procedures.
DOT INSPECTOR GENERAL REVIEW OF OPERATIONAL APPROACH
PROCEDURES BY THIRD PARTY

H—/S510(b)
House bill
No similar provision.
Senate bill
Section 510(b) directs the DOT IG review and report to Congress on FAA’s oversight of third party development of flight procedures, the extent of new flight procedures developed by third parties, and whether FAA has the resources to develop these procedures without the use of third parties.
Conference Substitute
House bill.
PERFORMANCE METRICS

H214/S317
House bill
Section 214 requires the FAA, within 180 days after enactment, to establish and track NextGen related performance metrics
within the national airspace system and to submit an annual report to Congress based on the results of the study.
Senate bill
Section 317 is a similar provision, but it has some different
metrics including ones to demonstrate reduced fuel burn and emissions.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill. The conference committee believes that performance metrics are the best way to evaluate the FAA’s progress in
implementing NextGen. With these metrics, Congress and the public will be able to determine the Administration’s real progress in
the delivery of NextGen benefits, which is the goal of the NextGen
program.

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CERTIFICATION STANDARDS AND RESOURCES

H215/S318
House bill
Section 215 requires the FAA to develop a plan to accelerate
the certification of NextGen technologies.
Senate bill
Section 318 is a similar provision, but it prohibits the FAA
from making any distinction between publicly and privately owned
equipment when determining certification requirements.
Conference Substitute
House bill modified to include language prohibiting the FAA
from making any distinction between publicly and privately owned
equipment when determining certification requirements.
SURFACE SYSTEMS ACCELERATION

H216/S321
House bill
Section 216 directs the Chief Operation Officer of the Air Traffic Organization (ATO) to: 1) evaluate Airport Surface Detection
Equipment-Model X (ASDE-X); 2) evaluate airport surveillance
technologies; 3) accelerate implementation of ASDE-X; and 4) carry
out additional duties as required by the Administrator. The Administrator is required to consider options for expediting the certification of Ground-Based Augmentation System (GBAS) technology,
and develop plans to utilize such a system at the 35 OEP airports
by September 30, 2012.
Senate bill
Section 321 is a similar provision, however it directs the FAA
to consider expediting the certification of Ground Based Augmentation Systems (GBAS) technology and develop a plan to utilize it at
the 35 OEP airports by September 30, 2012.
Conference Substitute
House bill.
INCLUSION OF STAKEHOLDERS IN AIR TRAFFIC CONTROL
MODERNIZATION PROJECTS

pwalker on DSK7TPTVN1PROD with REPORTS

H217/S322
House bill
Section 217 requires the Administrator to create a process for
including union employees in the planning, development, and deployment of air traffic control projects. Within 180 days of enactment, the FAA must report to Congress on implementation of this
provision.

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Senate bill
Section 322 is a similar provision, but it provides travel and
per diem expenses for the employees.
Conference Substitute
House bill modified, directing the Administrator to include
qualified employees selected by each collective bargaining representative of employees affected by air traffic control modernization projects. Includes provision for employees to receive per diem
reimbursement, if appropriate, however, the Administrator is prohibited from paying overtime expenses except in extraordinary circumstances. The provision also directs participants to adhere to
deadlines and milestones to help keep NextGen on schedule.
AIRSPACE REDESIGN

H218/S—
House bill
Section 218 contains Findings of Congress that the FAA redesign efforts will play a critical role in enhancing capacity, reducing
delays, and transitioning to more flexible routing. Additionally, the
Findings state that funding cuts have led to delays and deferrals
to critical capacity enhancing airspace redesign efforts, and several
new runways planned for in FY 2011 and FY 2012 will not provide
estimated capacity benefits without additional funds. It also requires the Administrator to work with the New York/New Jersey
Port Authority to monitor the noise impacts of the redesign and
submit a report to Congress on those impacts in one year.
Senate bill
No similar provision.
Conference Substitute
House bill.
STUDY ON FEASIBILITY OF DEVELOPMENT OF A PUBLIC INTERNET WEB
BASED RESOURCE ON LOCATIONS OF POTENTIAL AVIATION OBSTRUCTIONS

H219/S—
House bill
Section 219 instructs the Administrator to carry out a study on
the feasibility of developing publicly searchable web-based resources with information regarding height, latitudinal and longitudinal locations of guywire and free-standing tower obstructions.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
No similar provision.
Conference Substitute
House bill.

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NEXTGEN RESEARCH AND DEVELOPMENT CENTER OF EXCELLENCE

H220/S—
House bill
Section 220 permits the Administrator to enter into an agreement on a competitive basis to assist the establishment of a Center
of Excellence for the research and development of NextGen technologies.
Senate bill
No similar provision.
Conference Substitute
House bill.
PUBLIC-PRIVATE PARTNERSHIPS

H221/S—
House bill
Section 221 directs the Administrator to develop a plan to expedite the equipage of general aviation and commercial aircraft
with NextGen technologies.

pwalker on DSK7TPTVN1PROD with REPORTS

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

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government of providing the requested form and amount of assistance; (b) the estimated public and aviation system benefits to be
derived from installing the required avionics in the most timely
manner; (c) the amount of private sector funding that will be committed and the amount of private sector capital placed at risk; and
(d) the likelihood of default by borrowers.
FACILITATION OF NEXTGEN AIR TRAFFIC SERVICES

H—/S303
House bill
No similar provision.
Senate bill
Section 303 describes the factors that the FAA would consider
in determining whether to accept the provision of air traffic services by non-governmental providers.
Conference Substitute
House bill.
OPERATIONAL INCENTIVES

H—/S316
House bill
No similar provision.
Senate bill
Section 316 requires the FAA to issue a report to identify incentives to encourage the equipping of aircraft with NextGen technologies—including a ‘‘best equipped, best served’’ approach.
Conference Substitute
Senate bill.
EDUCATIONAL REQUIREMENTS

H—/S312
House bill
No similar provision.
Senate bill
Section 312 requires FAA to reimburse Department of Defense
(DOD) for the cost of DOD-provided education of dependents of
FAA employees stationed in Puerto Rico and Guam.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
Senate bill.

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STATE ADS–B EQUIPAGE BANK PILOT PROGRAM

H—/S324
House bill
No similar provision.
Senate bill
Section 324 authorizes the Secretary of Transportation to enter
into cooperative agreements with up to five states to establish
ADS–B equipage banks for making loans and providing other assistance to public entities.
Conference Substitute
House bill.
REPORT ON FUNDING FOR NEXTGEN TECHNOLOGY

H—/S319
House bill
No similar provision.
Senate bill
Section 319 requires the FAA to report on: 1) a financing proposal to fund the development and implementation of NextGen
technology; and 2) recommendations for operational benefits that
could be provided to aircraft for early equipage with NextGen technologies.
Conference Substitute
House bill.
AIR TRAFFIC CONTROLLER STAFFING INITIATIVES AND ANALYSIS

H—/S325
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 325 directs the FAA to implement certain DOT IG recommendations with respect to the air traffic control tower at Los
Angeles International Airport and the Southern California Terminal Radar Approach Control and Northern California Terminal
Radar Approach Control facilities by, among other things, ensuring
that classroom space, contract instructors, and simulators are sufficiently available to provide training to trainee air traffic controllers; evenly distributing new trainee controllers across the facilities
over the calendar year; and commissioning an independent analysis, in consultation with the controllers’ exclusive collective bargaining representative, of overtime scheduling practices.

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Conference Substitute
Senate bill modified by removing language that would limit application of this section to only the facilities named above. In addition, directs the Administrator, as soon as practicable, to assess
training programs at air traffic control facilities with below-average
success rates and prioritize such efforts to address recommendations for the facilities identified in Inspector General of the Department of Transportation Report Number AV–2009–047.
SEMIANNUAL REPORT ON STATUS OF GREENER SKIES PROJECT

H—/S326
House bill
No similar provision.
Senate bill
Section 326 requires the FAA to report to Congress on a strategy for accelerated implementation of the NextGen operational capabilities produced by the Greener Skies project. Follow-up reports
are due 180 days after the first report is submitted and then every
180 days after that until September 30, 2011.
Conference Substitute
Senate bill with modified language requiring the first report to
be submitted six months after enactment, with follow up reports
annually (instead of reports every 180 days) until the pilot program
terminates.
FINANCIAL INCENTIVES FOR NEXTGEN EQUIPAGE

H—/S328
House bill
No similar provision.
Senate bill
Section 328 authorizes the FAA Administrator to enter into
agreements to fund the costs of equipping aircraft with avionics to
enable NextGen technologies, including grants or other financial
instruments.
Conference Substitute
Senate bill dropped, however House language on public-private
partnerships was included.
TITLE III—SAFETY
JUDICIAL REVIEW OF DENIAL OF AIRMEN CERTIFICATES

pwalker on DSK7TPTVN1PROD with REPORTS

H301/S502
House bill
Section 301 allows a person to seek judicial review of a National Transportation Safety Board order in an appeal of a decision
on an application for an airman certificate.

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Senate bill
Section 328 is a similar provision with minor technical differences.
Conference Substitute
House bill.
RELEASE OF DATA RELATING TO ABANDONED TYPE CERTIFICATES AND
SUPPLEMENTAL TYPE CERTIFICATES

H302/S503
House bill
Section 302 authorizes the Administrator to release certificate
information without consent of the owner if: 1) the requested data
has been inactive for three or more years; 2) the FAA cannot, after
due diligence, find the owner of record, or the owner of record’s
heir; and 3) making the data available will enhance aviation safety.
The Administrator shall maintain engineering data in possession of
the FAA relating to a type certificate that has been inactive for
three or more years.
Senate bill
Section 503 is a similar provision but with no language regarding the requirement to maintain data.
Conference Substitute
House bill.
DESIGN AND PRODUCTION ORGANIZATION CERTIFICATES

H303/S504
House bill
Section 303 directs the Administrator to issue Certified Design
and Production Organization Certificates to aviation manufacturers
in order to streamline the certification process and allow FAA to
focus its safety resources on primary safety concerns. It clarifies
that nothing in this section would affect the FAA’s authority to revoke the Certified Design and Production Organization Certificates
once issued. The Administrator is directed to start issuing such certificates by January 1, 2013.
Senate bill
Section 504 authorizes the Administrator to issue design organization certificates beginning on January 1, 2013.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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CABIN CREW COMMUNICATION

H—/S508
House bill
No similar provision.
Senate bill
Section 508 requires that flight attendants be able to read,
speak and write English well enough to: 1) read and comprehend
material; 2) provide direction to, and understand and answer questions from, English-speaking individuals; 3) write incident reports
and statements, and log entries and statements; and 4) carry out
written and oral instruction regarding the proper performance of
their duties. This section does not apply to flight attendants serving solely between points outside the United States.
Conference Substitute
Senate bill, however the FAA shall work with air carriers to
facilitate compliance through the flight attendant certification requirements of 49 U.S.C. 44728.
LINE CHECK EVALUATIONS

H316/S722
House bill
Section 316 requires the Administrator to sunset, one year
after the date of enactment, the requirement for a second yearly
line check evaluation for airline pilots over the age of 60, unless
the Secretary of Transportation certifies that the additional line
check is necessary to ensure safety.
Senate bill
Section 722 is a similar provision, but does not require DOT
safety certification.
Conference Substitute
Senate bill.
SAFETY OF AIR AMBULANCE OPERATIONS

pwalker on DSK7TPTVN1PROD with REPORTS

H310/S507
House bill
Section 310 directs the FAA to issue a Notice of Proposed Rulemaking (NPRM) within 180 days to address air ambulance safety.
It requires a follow up or rulemaking to address additional Helicopter Emergency Medical Services training. Operators are required to collect and report data to the Administrator on their operations, including the number of flights and hours flown and for
the FAA to report on that data 24 months after enactment, and annually thereafter.

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Senate bill
Section 507 is similar language, but includes fixed-wing ambulance operators within the NPRM and includes a deadline of 60
days. It does not require pilot training, radar altimeters, survivability equipment, or operational control centers to be addressed
within the NPRM. It requires helicopter and fixed wing air ambulance operators to comply with regulations under 14 Code of Federal Regulations (C.F.R.) part 135 whenever there is medical personnel onboard, with certain exceptions. It also requires that terrain awareness and warning systems be onboard helicopter and
fixed wing aircraft within one year. The FAA is directed to study
and initiate a third rulemaking within one year of enactment to require devices similar to Cockpit Voice Recorders (CVR) and Flight
Data Recorders (FDR).
Conference Substitute
House bill with modified language to change deadline for the
first two rulemakings to June 1, 2012.
PROHIBITION ON PERSONAL USE OF CERTAIN DEVICES ON THE FLIGHT
DECK

H313/S558
House bill
Section 313 prohibits the use of laptops and other personal
wireless devices by the flight crew on the flight deck while the aircraft is being operated except if the device is being used for a purpose related to the operation of the aircraft, emergencies or safety,
or employment related communications. It authorizes civil penalties for violation of this provision and gives the Administrator the
ability to amend, modify, suspend or revoke an operator’s certificate for violation of this provision. The Secretary of Transportation
is required to initiate a rulemaking within 90 days of enactment;
and a final rule is due two years after date of enactment. It directs
the Administrator to conduct a study and report to Congress on the
sources of distraction for flight crewmembers.
Senate bill
Section 558 is a similar provision, except only civil penalties
are authorized for violation of this provision. It directs FAA to initiate a rulemaking within 30 days of enactment, and issue a final
rule within one year of enactment.
Conference Substitute
House bill.
INSPECTION OF REPAIR STATIONS LOCATED OUTSIDE THE UNITED
STATES

pwalker on DSK7TPTVN1PROD with REPORTS

H315/S521
House bill
Section 315 requires the Administrator to establish and implement a system for assessing the safety of foreign repair stations

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

H—/S562
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 562 requires that flight attendants and gate agents receive training related to: serving alcohol to passengers; recognizing
intoxicated passengers; and dealing with disruptive passengers.
Conference Substitute
Senate bill modified by removing references to gate agents
from the provision.

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LIMITATION ON DISCLOSURE OF SAFETY INFORMATION

H337/S554
House bill
Section 337 amends Chapter 447, by exempting the following
reports and data from being subject to discovery or subpoena or admitted into evidence in a Federal or State court: an Aviation Safety
Action Program (ASAP) report; data produced from a Flight Operational Quality Assurance (FOQA) Program; a Line Operations
Safety Audit (LOSA) Program report; hazard identification, risk assessment risk control; safety data collected for purpose of assessing/
improving aviation safety; and reports, analyses and directed studies based in whole or part on reports from the aforementioned programs including those under the Aviation Safety Information Analysis and Sharing (ASIAS) Programs. Any report or data that is voluntarily provided to the FAA shall be considered to be voluntarily
submitted information within the meaning and shall not be disclosed to the public. The FAA may release documents to the public
that include summaries, aggregations or statistical analyses based
on reports or data described in this section, and the NTSB is not
prevented from referring to relevant information. This exemption
shall not apply to a report developed or data produced on behalf
of a person if that person waives the privileges provided.
Senate bill
Section 554 would limit the use of FOQA and ASAP and LOSA
data in judicial proceedings. FOQA, ASAP or LOSA data would
only be allowed in a judicial proceeding if the judge finds that a
party shows that the information is relevant, not otherwise known
or available, and demonstrates a particularized need for the information that outweighs the intrusion upon the confidentiality of
these programs. If this information is used in a judicial proceeding,
the court would be required to protect it against further dissemination with a protective order and place the information under seal.
This section would also prohibit disclosure of this data through the
Freedom of Information Act. This section would not prevent the
NTSB from referring to information provided under the FOQA,
ASAP or LOSA programs.
Conference Substitute
House bill modified with technical edits.
PROHIBITION AGAINST AIMING A LASER POINTER AT AN AIRCRAFT

H—/S733

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
No similar provision.
Senate bill
Section 733 amends title 18, United States Code, to add a new
section 39A to make it a crime to knowingly aim the beam of a
laser pointer at an aircraft in the special aircraft jurisdiction of the
United States or at the flight path of such aircraft. An individual

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convicted of this crime is subject to criminal fines or imprisonment
up to 5 years. This provision does not apply to: 1) individuals conducting research and development or flight test operations for an
aircraft manufacturer or the Federal Aviation Administration; 2)
Department of Defense (DOD) or Department of Homeland Security (DHS) personnel conducting research, development, operations,
testing or training; or 3) an individual using a laser emergency signaling device to send a distress signal. Section 39A authorizes the
Attorney General, in consultation with the Secretary of Transportation, to provide by regulation, after public notice and comment,
additional exceptions to this provision as necessary and appropriate. The Attorney General must give written notice of any such
proposed regulations to the House and Senate Committees on the
Judiciary as well as other specified committees.
Conference Substitute
Senate bill with minor modifications.
AIRCRAFT CERTIFICATION PROCESS REVIEW AND REFORM

H304/S—
House bill
Section 304 directs the Administrator to review the current
practices for aircraft certification. It requires that in his/her assessment the Administrator must make recommendations to improve
efficiency and reduce costs through streamlining and reengineering
of certification process and issue a report within 180 days.
Senate bill
No similar provision.
Conference Substitute
House bill.
CONSISTENCY OF REGULATORY INTERPRETATION

H305/S—
House bill
Section 305 directs the Administrator to convene an advisory
panel to determine the root causes of inconsistent interpretation of
regulations by the FAA Flight Standards Service and Aircraft Certification Service, develop recommendations to improve the consistency of interpreting the regulations, and submit these recommendations to Congress within six months.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
No similar provision.
Conference Substitute
House bill with modification of six months to twelve months to
submit recommendations to Congress.

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RUNWAY SAFETY

H306/S501,517
House bill
Section 306 requires the Administrator within six months to
create a Strategic Runway Safety Plan to address: 1) goals to improve safety; 2) near and long term actions, time frames and resources needed, continuous evaluative process for goals, and review
of every commercial service airport; and 3) increased runway safety
risks with the expected increased volume of air traffic. It requires
a report to Congress by December 31, 2011 outlining a plan to install and deploy systems to alert controller and/or flight crews of
potential runway incursions.
Senate bill
Section 328 is a similar provision.
Conference Substitute
House bill.
FLIGHT STANDARDS EVALUATION PROGRAM

H308/S—
House bill
Section 308 directs the Administrator to modify the Flight
Standards Evaluation Program to include periodic and random audits of air carriers in the agency’s oversight, and prohibit an individual from participating in a review or audit of an office with responsibility for an air carrier under the program if the individual
had responsibility for inspecting the operations of that carrier in
the five year period preceding the date of the review. The Administrator is required to report to Congress within one year of enactment, and annually thereafter on the Flight Standards Evaluation
Program.
Senate bill
No similar provision.
Conference Substitute
House bill.
COCKPIT SMOKE

pwalker on DSK7TPTVN1PROD with REPORTS

H309/S—
House bill
Section 309 directs U.S. Government Accountability Office to
conduct a study on the effectiveness of the FAA’s oversight of the
use of new technologies to prevent/mitigate effects of dense and
continuous smoke in cockpit of aircraft, with a report to be submitted to Congress in one year.

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Senate bill
No similar provision.
Conference Substitute
House bill with modified language changing the report deadline from one year to 18 months.
OFF-AIRPORT, LOW-ALTITUDE AIRCRAFT WEATHER OBSERVATION
TECHNOLOGY

H311/S—
House bill
Section 311 directs the Administrator to conduct a review of
off-airport, low-altitude aircraft weather observation technologies,
which will include an assessment of technical alternatives, investment analysis, and recommendations for improving weather reporting. A report is required to be submitted to Congress in one year.
Senate bill
No similar provision.
Conference Substitute
House bill.
FEASIBILITY OF REQUIRING HELICOPTER PILOTS TO USE NIGHT VISION
GOGGLES

H312/S—
House bill
Section 312 directs the FAA to conduct a study and report to
Congress within one year of enactment on the feasibility and potential risks of requiring all pilots of helicopters providing air ambulance services to use night vision goggles during nighttime operations.
Senate bill
No similar provision.
Conference Substitute
House bill.
MAINTENANCE PROVIDERS

pwalker on DSK7TPTVN1PROD with REPORTS

H314/S522
House bill
Section 314 requires the Administrator to issue regulations
within three years to mandate that maintenance work on aircraft
be performed only by individuals employed by a part 121 air carrier, a part 145 repair station, or a company that provides contract
workers to part 121 carriers or part 145 repair stations if the individual meets part 121/145 requirements, works under the super-

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vision of a part 121/145 carrier/station, and carries out the work in
accordance with part 121/145.
Senate bill
Section 522 is a similar provision.
Conference Substitute
Senate bill with modifications, including heading changed to
‘‘Maintenance Providers.’’ This section directs the Administrator to
require that essential maintenance, regularly scheduled maintenance, and work pursuant to required inspection items must be
performed by part 121 carriers, part 145 repair stations, or contractors meeting the requirements of part 121 or 145 certificate holders. Covered work performed by a contractor meeting the requirements of part 121 or 145 certificate holders are subject to the following terms and conditions: 1) the part 121 carrier shall be directly in charge of work; 2) the work shall be carried out according
to the part 121 carrier’s maintenance manual; and 3) the work
shall be performed under the part 121 carrier’s supervision and
control.
121 air carriers are responsible for ensuring that all maintenance, whether performed by the air carrier itself or performed by
another entity under contract with the carrier, is conducted in accordance with the air carrier’s maintenance program. When maintenance is performed by another entity, the air carrier continues to
be responsible for the oversight of these maintenance providers,
who are considered to be an extension of the air carrier’s maintenance program. This provision will ensure that oversight responsibility for maintenance remains with the 121 air carrier recognizing
supervision and oversight of individuals may be with a Part 145 repair station.
Responsibility for oversight by 121 carriers is not meant to
change the permitted work of the Part 145 repair stations. In particular, 145 stations can continue to supervise and oversee the activities of individuals that perform contract maintenance—when it
is necessary to obtain technical expertise.
STUDY OF AIR QUALITY IN CABINS

H—/S564

pwalker on DSK7TPTVN1PROD with REPORTS

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

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

H307/S—
House bill
Section 307 directs the Administrator to issue improved pilot
licenses that are tamper-resistant, include a photograph of the individual, and are capable of accommodating a digital photograph,
a biometric identifier, or any other unique identifier. It instructs
the Administrator to develop methods to determine or reveal if part
of license issued has been tampered with.
Senate bill
No provision.
Conference Substitute
House bill modified by adding new language: 1) directing the
Administrator to provide the relevant House and Senate Committees with a timeline for the issuance of pilot licenses; 2) specifying
that the new licenses should incorporate biometric identifiers; and
3) requiring that the licenses must comply with established aviation security checkpoint clearance standards. The conference committee recognizes that the federal government is responsible for the
screening of all individuals prior to entry into airport sterile areas
and expects that efforts to utilize improved pilot certificates will be
carried out by the federal government.
STUDY OF HELICOPTER AND FIXED WING AIR AMBULANCE SERVICES

H—/S717
House bill
No similar provision.
Senate bill
Section 717 requires the GAO to conduct a detailed study of
the air ambulance industry and to make recommendations related
to the interaction of state and federal regulations of air ambulances.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill, because the GAO has completed the required study.

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PILOT FATIGUE

H—/S506
House bill
No similar provision.
Senate bill
Section 506 requires a study of pilot fatigue to be conducted by
the National Academy of Sciences and for the FAA to consider the
study’s findings as part of its rulemaking proceeding on pilot flight
time limitations and rest requirements.
Conference Substitute
Senate provision dropped because it is included in P.L. 111–
216, the Airline Safety and Federal Aviation Administration Extension Act of 2010.
OCCUPATIONAL SAFETY AND HEALTH STANDARDS FOR FLIGHT
ATTENDANTS ON BOARD AIRCRAFT

H—/S509
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 509 requires the Administrator to establish milestones
and a policy statement for the completion of work with the Occupational Safety and Health Administration (OSHA) begun under the
August 2000 Memorandum of Understanding (MOU) regarding the
application of OSHA requirements to crewmembers while working
in an aircraft.
Conference Substitute
Senate bill modified by dropping policy statement principles.
The conference committee believes that in initiating development of
a policy statement the FAA shall consider the establishment of a
coordinating body similar to the Aviation Safety and Health Joint
Team established by the August 2000 memorandum of understanding that includes representatives designated by both Administrations to examine the applicability of current and future Occupational Safety and Health Administration regulations; to recommend
policies for facilitating the training of Federal Aviation Administration inspectors; and to make recommendations that will govern the
inspection and enforcement of safety and health standards on
board aircraft in operation and all work-related environments. Any
standards adopted by the Federal Aviation Administration shall set
forth clearly the circumstances under which an employer is required to take action to address occupational safety and health hazards; the measures required of an employer under the standard;
and the compliance obligations of an employer under the standard.

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IMPROVED SAFETY INFORMATION

H—/S511
House bill
No similar provision.
Senate bill
Section 511 directs the Administrator to issue a final rule regarding re-registration and renewal of aircraft registration, which
must include preparing for the expiration of aircraft registration
certificates and periodic renewal process, and other measures to
promote the accuracy of the Administration’s aircraft registry.
Conference Substitute
House bill.
USE OF EXPLOSIVE PEST CONTROL DEVICES

H—/S523
House bill
No similar provision.
Senate bill
Section 523 requires the FAA to study the use of explosive pest
control devices to prevent wildlife strikes to aircrafts and submit
a report in six months.
Conference Substitute
House bill.
SUBTITLE B—UNMANNED AIRCRAFT SYSTEMS
DEFINITIONS

H321/S—
House bill
Section 321 defines the terms: ‘‘certificate of waiver’’, ‘‘sense
and avoid capability’’, ‘‘public unmanned aircraft system’’, ‘‘small
unmanned aircraft’’, ‘‘test range’’, ‘‘unmanned aircraft’’, and ‘‘unmanned aircraft system (UAS).’’
Senate bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House and Senate bills merged to include all of House definitions and Senate definition of ‘‘Arctic’’.

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INTEGRATION OF CIVIL UNMANNED AIRCRAFT SYSTEMS INTO
NATIONAL AIRSPACE SYSTEM

H322/S320, 607(a)(b)(d)(e)(f)
House bill
Section 322 requires the Secretary of Transportation to develop
a plan, in consultation with aviation and Unmanned Aircraft Systems (UAS) industry representatives, within nine months of enactment, for the safe integration of civil UASs into the National Airspace (NAS). This plan must contain a review of technologies and
research to assist in this goal, recommendations for a rulemaking
on the definition of acceptable standards, ensure civil UASs have
sense and avoid capability, develop standards and requirements for
operator and pilots of UASs, and recommendations. The plan must
include a realistic time frame for UAS integration into the NAS,
but no later than September 30, 2015. The plan must be submitted
to Congress within one year of enactment. The FAA is required to
initiate a Notice of Proposed Rulemaking (NPRM) for site integration of UAS within 18 months of the date of enactment of the integration plan.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 320 requires the FAA to develop a plan within one year
to accelerate the integration of UASs into the NAS. This plan must
include: 1) a pilot project that includes the integration of UAS into
six test sites, representing geographic and climate differences within the United States, by 2012; 2) development of certification, flight
standards, and air traffic requirements for UASs; 3) the dedication
of funding for research on UAS certification, flight standards, and
air traffic control (ATC); 4) coordination of research between NASA
and DOD; and 5) verification of the safety of UASs before their integration into the NAS. This section would allow the FAA Administrator to include testing at six test sites as part of the integration
plan by 2012. The FAA is directed to work with DOD to certify and
develop flight standards for military unmanned aerial systems and
to integrate these systems into the NAS as part of the UAS integration plan. The FAA Administrator is required to submit a report
describing and assessing the progress made in establishing special
use airspace for DOD to develop detection techniques for small
UASs.
Section 607 allows the FAA to conduct developmental research
on UASs. It would direct the FAA and the National Academy of
Sciences to create an assessment of UAS capabilities and would require the National Academy of Sciences to submit a report to Congress on the subject. It requires the FAA to issue a rule to update
the most recent policy statement on UASs. The FAA is directed to
identify permanent areas in the Arctic where UASs may operate 24
hours a day. The FAA is to take part in cost-share pilot projects
designed to accelerate the safe integration of UASs into the NAS.
Conference Substitute
House and Senate bills merged. The conference committee directs the Secretary to develop a plan to accelerate the safe integra-

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tion of unmanned aircraft systems (UAS) into the national airspace
system. The Secretary is directed to develop the plan in consultation with the aviation industry, federal agencies using UASs, and
the UAS industry as soon as practicable, but no later than September 30, 2015. Concurrent with the integration planning, the
Secretary is directed to publish, and update annually, a five-year
roadmap describing the activities of the FAA’s Unmanned Aircraft
Program Office, and its efforts to safely integrate UASs into the national airspace system. The conference committee also directs the
Secretary to promulgate rules to allow for integration of small
UASs into the national airspace system. The conference committee
also directs the Administrator of the Federal Aviation Administration to establish six test ranges until September 30, 2020. Test
range locations are not designated in the legislation. Instead, the
Administrator is directed to coordinate with, and leverage resources from, the National Aeronautics and Space Administration
and the Department of Defense to select the test ranges based on
the criteria set forth in this section. This language is consistent
with legislative direction in the National Defense Authorization Act
for Fiscal Year 2012 (Public Law 112–81). The intent of the committee is for the Administrator to establish a total of six test
ranges under both laws, and not six ranges to be established under
each law for a total of twelve. The conference committee directs the
Secretary to develop a plan for the use of UASs in the arctic, as
defined in this subtitle. Finally, the term ‘‘non-exclusionary airspace’’ was removed as the FAA does not recognize that term. The
conference committee intends that when the FAA establishes the
program to integrate UASs into the national airspace system at six
test ranges, the Administrator shall safely designate airspace for
integrated manned and unmanned flight operations in the national
airspace system.
SPECIAL RULES FOR CERTAIN UNMANNED AIRCRAFT SYSTEMS

H323/S—
House bill
Section 323 directs that within 180 days the Secretary of
Transportation, prior to completing of the Commercial UAS integration plan, will determine if certain UASs may operate in the
NAS. Assessment of the UASs will determine which types of UAS
do not create hazard to users of NAS or national security, and
whether a certificate of waiver or authorization of airworthiness is
required. If the Secretary determines UAS may operate safely in
the NAS, the Secretary shall establish requirements of the safe operation of such systems.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
No similar provision.
Conference Substitute
House bill.

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198
PUBLIC UNMANNED AIRCRAFT SYSTEMS

H324/S—
House bill
Section 324 directs that within 270 days the Secretary of
Transportation will issue guidance on the operation of public UASs
to expedite the certificate of authorization process, provide a collaborative process for expansion of access to the NAS, and provide
guidance on public entities responsible when operating UASs. By
December 31, 2015, the Secretary is required to implement operational and certification standards. The Secretary is directed to
enter into agreements, within 90 days, with appropriate government agencies to simplify and expedite the process for issuing certificates of waiver or authorization regarding applications seeking
authorization to operate public UASs in the NAS.
Senate bill
No similar provision.
Conference Substitute
House bill.
SAFETY STUDIES

H325/S—
House bill
Section 325 directs the Administrator to conduct all safety
studies necessary to support integration of UASs into the NAS.
Senate bill
No similar provision.
Conference Substitute
House bill.
SPECIAL RULE FOR MODEL AIRCRAFT

H—/S607(g)
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 607(g) exempts most model airplanes used for recreational or academic use from any UAS regulations established by
the FAA.
Conference Substitute
Senate bill with modifications. Language including model aircraft for the purposes of sports, competitions and academic purposes is removed and replaced with ‘‘hobby’’. The modified section
includes language requiring that the model aircraft must be operated in a manner that does not interfere with and gives way to, all

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199
manned aircraft. In addition, language that requires that model
aircraft flown within five miles of an airport will give prior notification to the airport and the air traffic control (ATC), and that model
aircraft that are flown consistently within five miles of the ATC
will do so under standing agreements with the airports and ATC.
Lastly, language is added that will ensure that nothing in this provision will interfere with the Administrator’s authority to pursue
enforcement action against persons operating model aircraft who
endanger the safety of the national airspace system. In this section
the term ‘‘nationwide community-based organization’’ is intended to
mean a membership based association that represents the
aeromodeling community within the United States; provides its
members a comprehensive set of safety guidelines that underscores
safe aeromodeling operations within the National Airspace System
and the protection and safety of the general public on the ground;
develops and maintains mutually supportive programming with
educational institutions, government entities and other aviation associations; and acts as a liaison with government agencies as an
advocate for its members.
UNMANNED AIRCRAFT SYSTEMS TEST RANGE

H326/S607(c)
House bill
Section 326 directs the Administrator no later than one year
after enactment to establish a program to integrate UASs into the
national airspace system at no fewer than four test ranges. The
program will include safely designating nonexclusionary airspace
for integrated unmanned flight operations, develop certification
standards and air traffic requirements, coordinate and leverage the
resources of National Air and Space Administration and Department of Defense, address both civil and public UAS, ensure the
program is coordinated with NextGen, and provide for verification
of safety of UASs. In determining test range locations the Administrator shall consider geographic and climate diversity and consult
with NASA and the Air Force.
Senate bill
Section 607(c) is a similar provision, but it allows the Administrator to include testing at three test sites as part of the integration plan by 2012. It directs the FAA to work with DOD to certify
and develop flight standards for military UASs and to integrate
these systems into the NAS as part of the UAS integration plan.
Section 320 establishes a test range program for 10 sites.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House and Senate bills merged into language that is included
in Section 332 ‘‘Integration of civil unmanned aircraft into the national airspace system’’.

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200
SUBTITLE C—SAFETY

AND

PROTECTIONS

AVIATION WHISTLEBLOWER INVESTIGATION OFFICE

H334/S518
House bill
Section 334 establishes an independent Whistleblower investigation office within the FAA. The Director of this office is to be
appointed by the Secretary of Transportation for a five year term.
The office is in charge of investigating reports of agency or carrier
safety violations, and is to make recommendations to the Administrator. It specifies that the Director cannot be prohibited from initiating an assessment of a complaint and that any evidence of criminal violations must be reported to the Administrator and Inspector
General of the Department of Transportation (DOT IG).
Senate bill
Section 518 is a similar provision, but it does not require the
Secretary to exercise authority under title 5 for the prevention of
prohibited personnel actions or require direct reporting by the Director to the Secretary.
Conference Substitute
House bill with modified language to authorize the Director of
the office created under this section to receive and investigate disclosures from employees of the Administration as well as employees
of persons holding certificates issued under title 14 of the Code of
Federal Regulations (C.F.R.), if those certificate holders do not
have similar in-house reporting programs, relating to possible violation of an order, a regulation, or any other provision of federal
law relating to aviation safety.
POST-EMPLOYMENT RESTRICTIONS FOR FLIGHT STANDARDS
INSPECTORS

H331/S513
House bill
Section 331 establishes a two year post-service period for FAA
inspectors or persons responsible for oversight of FAA inspectors
before they can act as an agent or representative of a certificate
holder that they previously had responsibility for while employed
at the FAA.
Senate bill
Section 513 is a similar provision, but it has a three year postservice restriction.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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REVIEW OF AIR TRANSPORTATION OVERSIGHT SYSTEM DATABASE

H332/S520
House bill
Section 332 requires the FAA to create a process to review the
Air Transportation Oversight System (ATOS) database by regional
teams to ensure that trends in regulatory compliance are identified, and appropriate corrective actions are taken according to Administration regulations.
Senate bill
Section 520 is a similar provision.
Conference Substitute
House bill.
IMPROVED VOLUNTARY DISCLOSURE REPORTING SYSTEM

H333/S512
House bill
Section 333 requires FAA to modify the Voluntary Disclosure
Reporting Program (VDRP) to require inspectors to verify that air
carriers have implemented comprehensive solutions to correct underlying causes of voluntarily disclosed violations, and confirm, before approving a final report of a violation, that the violation has
not been previously discovered by an inspector or self-disclosed by
an air carrier. The DOT IG is directed to review the FAA’s implementation of the VDRP program.
Senate bill
Section 512 is a similar provision.
Conference Substitute
House bill.
DUTY PERIODS AND FLIGHT TIME LIMITATIONS APPLICABLE TO FLIGHT
CREWMEMBERS

H335/S—

pwalker on DSK7TPTVN1PROD with REPORTS

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

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Conference Substitute
House bill.
CERTAIN EXISTING FLIGHT TIME LIMITATIONS AND REST
REQUIREMENTS

H336/S—
House bill
Section 523 extends the sections 263 and 264 of part 135 of
title 14 C.F.R. for part 135 certificate holders providing air ambulance services and pilots and flight crewmembers of all cargo aircraft regarding certain flight times and rest periods shall remain
in effect as they were in effect in January 1, 2011. It prohibits the
Administrator from issuing, finalizing or implementing a rule as
proposed in the FAA docket on ‘‘Interpretations of Rest Requirements’’ published in the register on December 23, 2010, or any
similar rule regarding such sections for part 135 certificate holders
providing air ambulance services and pilots and flight crewmembers of all cargo aircraft.
Senate bill
No similar provision.
Conference Substitute
House bill modified by removing language requiring a separate
rulemaking and language referencing requirements in effect on
January 1, 2011.
EMERGENCY LOCATOR TRANSMITTERS ON GENERAL AVIATION
AIRCRAFT

H—/S553
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 553(a), (b) directs the Administrator to submit an annual report to Congress regarding the recommendations issued by
the NTSB consisting of the following: 1) whether the FAA plans to
implement the recommendation of the NTSB: 2) if so, what actions
the FAA plans to take to implement the recommendation: and 3)
if the FAA chooses to not implement a NTSB recommendation, its
reasoning for not doing so. This section would require the FAA to
submit within 180 days to Congress the above information on all
current NTSB recommendations not implemented so far.
Section 553(c) requires the FAA to implement NTSB recommendations relating to the proper installation of emergency locator transmitters (ELTs) on general aviation aircraft.
Conference Substitute
Senate bill modified to only keep the ELT language.

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LIABILITY PROTECTION FOR PERSONS IMPLEMENTING SAFETY
MANAGEMENT SYSTEMS

H338/S—
House bill
Section 338 specifies that a person required by the FAA to implement a Safety Management System (SMS) may not be held liable for damages in connection with a claim filed in a State or Federal court relating to the person’s preparation or implementation of
the SMS. The section does not relieve a person from liability for
damages resulting from the person’s own willful or reckless acts or
omissions when demonstrated through evidence. Notwithstanding
any other provision of law, a person employed by previously mentioned individuals and responsible for performing functions of an
accountable executive, shall be deemed to be acting in the person’s
official capacity and may not be held liable for damages. A person
performing the functions of an accountable executive is not relieved
from personal liability for damages resulting from reckless acts or
omissions.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
MODIFICATION OF CUSTOMER SERVICE INITIATIVE

H—/S519
House bill
No similar provision.
Senate bill
Section 519 directs the FAA to remove from their customer
service initiative, mission statements, and vision statements, any
reference to air carriers as ‘‘customers’’. This section instructs the
agency to guarantee that these statements should emphasize safety
as the agency’s highest priority when considering the dissatisfaction of any regulated entity.
Conference Substitute
House bill.
INDEPENDENT REVIEW OF SAFETY ISSUES

H—/S514

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
No similar provision.
Senate bill
Section 514 directs the U.S. Government Accountability Office
(GAO) to initiate a review and investigation of air safety issues

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204
identified by FAA employees and reported to the Administrator.
The GAO must report any findings to the Administrator and relevant Congressional Committees on an annual basis.
Conference Substitute
House bill.
NATIONAL REVIEW TEAM

H—/S515
House bill
No similar provision.
Senate bill
Section 517 requires the FAA to create a national review team
to conduct unannounced, periodic, random reviews of the Administration’s oversight of air carriers that will report to the Administrator and the relevant Congressional Committees. Members of the
team may not review an air carrier that they previously had responsibility for overseeing. The section would also direct the DOT
IG to provide progress reports on the review team’s effectiveness to
Congress.
Conference Substitute
House bill.
SAFETY INSPECTIONS OF REGIONAL CARRIERS

H—/S559
House bill
No similar provision.
Senate bill
Section 559 instructs the Administrator to make random, onsite safety inspections of regional air carriers at least once a year.
Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.
OVERSIGHT OF PILOT FLIGHT TRAINING SCHOOLS

H—/S561

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
No similar provision.
Senate bill
Section 561 directs the Administrator to submit a plan to Congress detailing the FAA’s plans to enforce oversight of Pilot Training Schools.

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Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.
FEDERAL AVIATION ADMINISTRATION PILOT RECORDS DATABASE

H—/S551
House bill
No similar provision.
Senate bill
Section 551 requires that part 121 air carriers review a pilot’s
entire history before making hiring decisions. It would mandate
that the FAA develop and maintain a comprehensive database of
pilot records, including both FAA records and air carrier records.
It contains provisions permitting pilots to review and correct their
records.
Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.
AIR CARRIER SAFETY MANAGEMENT SYSTEMS

H—/S552
House bill
No similar provision.
Senate bill
Section 552 directs the FAA to initiate a rulemaking requiring
all part 121 air carriers to implement three safety programs as
part of their Safety Management Systems (SMS) including: an
Aviation Safety Action Program (ASAP), a Flight Operational Quality Assurance (FOQA) program, and a Line Operations Safety
Audit LOSA program. It would require that the FAA implement
employee protections for the ASAP and FOQA programs and mandate that the FAA Administrator consider the viability of integrating cockpit voice recorder data into safety oversight practices
and guarantee that the agency enforce safety regulations in a consistent manner.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.

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

H—/S554
House bill
No similar provision.
Senate bill
Section 554 would limit the use of FOQA and ASAP and LOSA
data in judicial proceedings. FOQA, ASAP or LOSA data would
only be allowed in a judicial proceeding if the judge finds that a
party shows that the information is relevant, not otherwise known
or available, and demonstrates a particularized need for the information that outweighs the intrusion upon the confidentiality of
these programs. If this information is used in a judicial proceeding,
the court would be required to protect it against further dissemination with a protective order and place the information under seal.
This section would prevent disclosure of this data through the
FOIA but would not prevent the NTSB from referring to information provided under the FOQA, ASAP or LOSA programs.
Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.
RE-EVALUATION OF FLIGHT CREW TRAINING, TESTING, AND
CERTIFICATION REQUIREMENTS

H—/S555
House bill
No similar provision.
Senate bill
Section 555 requires the Administrator to develop and implement a plan to reevaluate flight crew training procedures and
would specify what types of training would be included in the review. It would require the Administrator to initiate a new rulemaking to reevaluate minimum requirements to become a commercial pilot, certificated captain, and when transitioning to a new
type of aircraft.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.

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FLIGHTCREW MEMBER MENTORING, PROFESSIONAL DEVELOPMENT,
AND LEADERSHIP

H—/S556
House bill
No similar provision.
Senate bill
Section 556 requires the FAA to establish an ARC to develop
flight crew mentoring programs and establish or modify training
existing programs to include leadership and command training.
Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.
FLIGHTCREW MEMBER SCREENING AND QUALIFICATIONS

H—/S557
House bill
No similar provision.
Senate bill
Section 557 requires the FAA to issue a rule that ensures
flight crew members have proper qualifications and experience, including a minimum of 800 hours of flight training, before serving
as a flight crew member for a part 121 air carrier.
Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.
ESTABLISHMENT OF SAFETY STANDARDS WITH RESPECT TO THE
TRAINING, HIRING, AND OPERATION OF AIRCRAFT BY PILOTS

H—/S560
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 560 requires the FAA to issue a final rule establishing
training safety standards for pilots within 180 days after enactment of this Act.
Conference Substitute
Senate bill dropped because it is included in P.L. 111–216, the
Airline Safety Federal Aviation Administration Extension Act of
2010.

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DEFINITIONS

H—/S563
House bill
No similar provision.
Senate bill
Section 563 defines the terms: ‘‘Aviation Safety Action Program,’’ ‘‘Administrator’’, ‘‘Air Carrier’’, ‘‘FAA’’, ‘‘Flight Operational
Quality Assurance Program’’, ‘‘Line Operation Safety Audit Program’’, and ‘‘Part 121 Air Carrier’’.
Conference Substitute
House bill.
TITLE IV—AIR SERVICE IMPROVEMENTS
SUBTITLE B—ESSENTIAL AIR SERVICE
ESSENTIAL AIR SERVICE MARKETING

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

pwalker on DSK7TPTVN1PROD with REPORTS

H402/S—
House bill
Section 402 requires the Secretary of Transportation to notify
a community receiving EAS at least 45 days in advance of any final
decision to end EAS payments to that community due to a determination by the Secretary that providing such service requires a
subsidy in excess of the per passenger subsidy cap. The Secretary
shall establish procedures by which each community that is notified of an impending loss of subsidy may work directly with an air
carrier to ensure that the air carrier is able to submit a proposal
to the Secretary that does not require a subsidy in excess of the
per passenger subsidy cap.

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209
Senate bill
No similar provision.
Conference Substitute
House bill.
RESTORATION OF ELIGIBILITY

H406/S418
House bill
Section 406 authorizes state and local governments to submit
a proposal to restore essential air service to a location after that
location’s per passenger subsidy has been determined to be over the
allowable dollar amount. To qualify for restoration of service, the
Secretary must determine that the rate of subsidy per passenger
under the proposal does not exceed the allowable amount and the
proposal is consistent with the legal and regulatory requirements
of the essential air service program.
Senate bill
Section 418 is a similar provision.
Conference Substitute
House and Senate bills modified to include proposals to restore
essential air service to locations that have been determined to have
fewer than 10 enplanements per day. To qualify for restoration of
service, the Secretary must determine that the rate of subsidy per
passenger under the proposal does not exceed the allowable
amount, the proposal is likely to result in an average of at least
10 enplanements per day, and the proposal is consistent with the
legal and regulatory requirements of the essential air service program.
ESSENTIAL AIR SERVICE CONTRACT GUIDELINES

H403/S413
House bill
Section 403 authorizes DOT to provide incentive payments to
communities for achieving performance goals, and to execute longterm EAS contracts. Requires DOT to issue revised guidelines incorporating these changes within 18 months after the date of enactment. Requires DOT to report to Congress on the extent to which
the revised guidelines have been implemented, and the impact such
implementation has had, every two years after the guidelines are
established.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 413 is a similar provision, but it does not contain language on issuing guidance or the report.
Conference Substitute
House bill modified to extend the deadline for issuance of revised guidelines to one year after date of enactment.

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ESSENTIAL AIR SERVICE REFORM

H404/S415
House bill
Section 404 authorizes $97.5 million for Essential Air Service
(EAS) in FY 2011, $60 million in FY 2012, and $30 million in FY
2013. These amounts are in addition to the $50 million per year
the EAS program is authorized to receive under current law from
overflight fees collected by the FAA. Beginning in FY 2014, section
404 limits the amount EAS would receive from overflight fees to
the amount needed to provide EAS to eligible communities in Alaska and Hawaii. In addition, it directs the Secretary of Transportation to take such actions as may be necessary to administer the
EAS program within the amount of funding made available for the
program.
Senate bill
Section 415 authorizes $150 million per year for EAS, plus $50
million from overflight fees. It requires any overflight fees in excess
of $50 million to be obligated for various EAS programs, including
the code sharing pilot program under section 406 of Vision 100 and
the alternate air service pilot program under § 41745.
Conference Substitute
Authorizes $143 million for EAS in FY 2012, $118 million in
FY 2013, $107 million in FY 2014, and $93 million in FY 2015. In
addition, authorizes all overflight fees collected by the FAA to be
made available, until expended, to carry out the essential air service program.
SMALL COMMUNITY AIR SERVICE

H405/S416
House bill
Section 405 adds an additional factor that the Secretary of
Transportation must consider in selecting communities for participation in the Small Community Air Service Development (SCASD)
program. In addition to the existing criteria for participation in the
program, the Secretary is required to give priority to multiple communities that cooperate to submit a regional or multi-state application to improve air service. It eliminates the general fund authorization of appropriations for the SCASD program, funding it instead through overflight fee collections.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 413 extends the authorization for the SCASD program
at its authorized funding level of $35 million per year through FY
2011.
Conference Substitute
Requires the Secretary to give priority to multiple communities
that cooperate to submit a regional or multistate application to consolidate air service into one regional airport. Authorizes the appro-

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priation of $6 million for the Small Community Air Service Development program for each of fiscal years 2012 through 2015.
ADJUSTMENTS TO COMPENSATION FOR SIGNIFICANTLY INCREASED
COSTS

H406/S418(g)
House bill
Section 406 permits the Secretary of Transportation to increase
the rates of compensation payable to air carriers under the EAS
program to compensate carriers for increased aviation fuel costs,
without regard to any agreement, without requiring the negotiation
of existing contracts, and without any notice requirement. It removes the 90 day period in which the Secretary may continue to
pay the amount previously contracted for an EAS carrier who has
given notice, but has been required to continue operating.
Senate bill
Section 418(g) is a similar provision.
Conference Substitute
House bill.
REPEAL OF ESSENTIAL AIR SERVICE LOCAL PARTICIPATION PROGRAM

H407/S419
House bill
Section 407 eliminates an EAS pilot program in which communities assumed a portion of the cost of providing EAS to the community.
Senate bill
Section 419 is a similar provision with minor technical differences.
Conference Substitute
House and Senate bills.
SUNSET OF ESSENTIAL AIR SERVICE PROGRAM

H408/S420,421

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
Section 408 sunsets the EAS program everywhere except Alaska and Hawaii as of October 1, 2013.
Senate bill
Section 420 imposes limits EAS to locations that average ten
or more enplanements per day, with an exception for Alaska. It authorizes the Administrator to waive this limitation with respect to
a location if the Administrator determines that the reason the location averages fewer than ten enplanements per day is not because
of inherent issues with the location.

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Section 421 limits EAS to locations that are 90 or more miles
away from the nearest medium or large hub airport. It authorizes
the Secretary of Transportation to waive this limitation as a result
of geographic characteristics resulting in undue difficulty accessing
the nearest medium or large hub airport.
Conference Substitute
Senate bill, except the requirement that locations be at least
90 miles away from the nearest large or medium hub airport is deleted; the requirement that locations have at least 10
enplanements per day only applies to locations that are within 175
miles of a large or medium hub airport; and an exception is added
for locations in the State of Hawaii and Alaska. In addition, instead of sunsetting the program as proposed in the House bill, the
conference substitute freezes the program at the communities currently participating. Specifically, except in Alaska and Hawaii, the
conference agreement limits eligibility for EAS to those communities that, at any time from September 30, 2010, to September 30,
2011, either received subsidized EAS or were notified by the last
carrier providing unsubsidized service to the community of the carrier’s intent to terminate such service.
SUBTITLE A—PASSENGER AIR SERVICE IMPROVEMENTS
SMOKING PROHIBITION

H421/S—
House bill
Section 421 prohibits smoking on aircraft in all intrastate,
interstate, and foreign air transportation for scheduled passenger
or nonscheduled passenger air transportation when a flight attendant is required.
Senate bill
No similar provision.
Conference Substitute
House bill.
MONTHLY AIR CARRIER REPORTS

H422/S402

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
Section 422 requires air carriers that file monthly service reports to also file a monthly report on each flight diverted and each
flight that departs the gate but is cancelled before the flight takes
off. It requires the Secretary of Transportation to compile the information in a single monthly report and publish it on a DOT website.
Senate bill
Section 402 requires air carriers to publish on their website,
and update monthly, a list of chronically delayed flights operated
by the air carrier. It requires air carriers and authorized entities

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213
to disclose the on-time performance for a chronically delayed flight
when a customer books a flight on the carrier’s website, prior to actual purchase of a ticket.
Conference Substitute
House bill.
MUSICAL INSTRUMENTS

H424/S713
House bill
Section 424 requires air carriers to permit passengers to carry
a small musical instrument, such as a violin, guitar, onto the aircraft cabin if it can be stowed safely in a suitable baggage compartment in the aircraft cabin or baggage or cargo storage compartment
if the instrument can be stowed properly and there is space for
such instruments. Air carriers are to permit passengers to bring a
large instrument into the passenger compartment if the instrument
can be stowed properly in a seat and the passenger has purchased
a seat for the instrument. Air carriers must transport as checked
baggage musical instruments that may not be carried on provided
they meet certain weight and size limitations (i.e., if the sum of
length, width, and height does not exceed 150 inches, weigh over
165 pounds, or exceed size and weight restrictions for that aircraft)
and can be properly stowed. It directs, no later than two years
after the date of enactment, the Secretary of Transportation to
issue final regulations to carry out this section.
Senate bill
Section 713 is a similar provision, but it does not specify that
passengers carrying musical instruments would be charged fees for
that luggage. There is no deadline for the rulemaking to be completed by, but it includes a mandate to require carrier participation.
Conference Substitute
House bill modified to specify that passengers carrying musical
instruments are subject to the same baggage fees assessed to all
other types of carry-on baggage if a seat is not purchased for that
instrument.
EXTENSION OF COMPETITIVE ACCESS REPORTS

H—/S705

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
No similar provision.
Senate bill
Section 705 makes the requirement for air carriers to file competitive access reports permanently by eliminating the current sunset provision. Current law requires large and medium hub airports
to file semi-annual competition disclosure reports with DOT before
receiving an AIP grant if the airport was unable to accommodate

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214
an airline request for facility access. The report must explain the
reason for the lack of accommodation and time frame for accommodation.
Conference Substitute
Senate bill modified to the length of the bill.
AIRFARES FOR MEMBERS OF THE ARMED SERVICES

H426/S433
House bill
Section 426 expresses the Sense of Congress that each domestic air carrier should seek to provide active duty members of the
Armed Services who are traveling on leave or liberty at their own
expense with: reduced air fares that are comparable to the lowest
airfare for ticketed flights, and that eliminate to the maximum extent possible advanced purchase requirements; no baggage and excess weight fees, or reduced fees; flexible terms that allow members
to purchase, modify, or cancel tickets without time restrictions, and
to waive fees (including baggage fees), ancillary costs, or penalties;
and proactive measures to ensure that all airline employees are
trained in the policies pertaining to members of the Armed Forces
who are on leave.
Senate bill
Section 433 is a similar provision with minor technical differences.
Conference Substitute
House bill.
REVIEW OF AIR CARRIER FLIGHT DELAYS, CANCELLATIONS, AND
ASSOCIATED CAUSES

H427/S—
House bill
Section 427 requires the Inspector General of the Department
of Transportation (DOT IG) to conduct a review regarding air carrier flight delays, cancellations, and associated causes, to update its
2000 report, within one year of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.
COMPENSATION FOR DELAYED BAGGAGE

pwalker on DSK7TPTVN1PROD with REPORTS

H429/S—
House bill
Section 429 directs the U.S. Government Accountability Office
to study delays in the delivery of checked baggage to passengers,

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215
assess options and examine: the impact of establishing minimum
standards to compensate a passenger in the case of unreasonable
delays; take into consideration the additional fees for checked baggage that are imposed by many air carriers; and how the additional
fees should improve a carrier’s baggage performance. The report
must be submitted within 180 days of the date of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.
DOT AIRLINE CONSUMER COMPLAINT INVESTIGATIONS

H431/S403
House bill
Section 431 directs the Secretary of Transportation to investigate consumer complaints regarding: 1) flight cancelations; 2)
overbooking flights; 3) lost or damaged baggage; 4) problems obtaining refunds; 5) incorrect information regarding fares; 6) frequent flyer programs; and 7) deceptive or misleading advertising.
Senate bill
Section 403 is a similar provision, but with language requiring
a budget needs report.
Conference Substitute
House bill.
STUDY OF OPERATORS REGULATED UNDER PART 135

H432/S—
House bill
Section 432 requires the Administrator, along with interested
parties, to conduct a study of part 135 operators within 18 months
of enactment, and an update within three years, and every two
years thereafter.
Senate bill
No similar provision.
Conference Substitute
House bill with modification removing the requirement for follow up reports every two years.
USE OF CELL PHONES ON PASSENGER AIRCRAFT

pwalker on DSK7TPTVN1PROD with REPORTS

H433/S—
House bill
Section 433 directs the Administrator to conduct a study within four months of enactment on the impact of the use of cell phones
for voice communications in scheduled flights where currently per-

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216
mitted by foreign governments in foreign air transportation. The
results of the study must be published and open to public comment,
and a final report must be submitted to Congress within nine
months of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.
ESTABLISHMENT OF ADVISORY COMMITTEE FOR AVIATION CONSUMER
PROTECTION

H—/S404
House bill
No similar provision.
Senate bill
Section 404 requires the establishment of an advisory committee for the Secretary of Transportation regarding aviation consumer protection. Membership would consist of one representative
each from an air carrier, airport operator, and a state or local government with expertise with consumer protection matters, and one
nonprofit group with expertise in consumer protection matters. It
directs the advisory committee to report annually on its recommendations on February 1 of each of the first two calendar years
of enactment.
Conference Substitute
Senate bill modified to make the provision last the length of
the bill and removes travel per diem for members of the advisory
committee.
DISCLOSURE OF SEAT DIMENSIONS TO FACILITATE THE USE OF CHILD
SAFETY SEATS ON AIRCRAFT

H—/S408
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 408 directs the Administrator to prescribe regulations,
within six months of enactment, to facilitate the use of child safety
seats on aircraft. The regulations must require part 121 air carriers to post on their websites the maximum dimensions of a child
safety seat that can be used on each aircraft operated by the air
carrier to enable passengers to determine which child safety seats
can be used on those aircraft.
Conference Substitute
Senate bill with modified language changing the deadline for
the regulations from six months to twelve months. The conference

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committee also believes that passengers should be made fully
aware of the location of final assembly of the aircraft on which they
fly. Therefore, the committee believes the Secretary should require
air carriers to position the ‘‘location of final assembly’’ notification
immediately below the aircraft model number on the front page of
the information placard.
SCHEDULE REDUCTION

H430/S—
House bill
Section 430 directs the FAA to convene a conference of air carriers to voluntarily reduce aircraft operations if the FAA determines that operations of those carriers are exceeding the hourly
maximum departure and arrival rates, and the excess operations
are likely to have a significant adverse effect on the NAS. It authorizes FAA to take action as necessary if there is no voluntary
agreement to reduce schedules.
Senate bill
No similar provision.
Conference Substitute
House bill modified by adding new section specifying that the
Administrator shall give priority to United States-flagged air carriers in permitting additional operations subsequent to any voluntary or non-voluntary reduction in operations.
FLIGHT OPERATIONS AT RONALD REAGAN WASHINGTON NATIONAL
AIRPORT

H423/S737

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
Section 423 directs the Secretary of Transportation to grant an
additional ten beyond-perimeter exemptions (from 24 under current
law to 34) at Washington Reagan National Airport (DCA). It increases the number of operations by which exemptions may increase operations during any one-hour period between 7:00 AM and
9:59 PM, from three to five. The Administrator is required to reduce the hourly air carrier slot quota at DCA by ten slots in order
to grant the additional exemptions provided. These reductions are
required to be taken in the 6:00 AM, 10:00 PM or 11:00 PM hours.
Scheduling priority is to be given to new entrant air carriers and
limited incumbent air carriers over operations conducted by air carrier grant exemptions. The highest scheduling priority is given to
beyond-perimeter operations conducted by new entrant air carrier
and limited incumbent air carriers.
Senate bill
Section 737 creates additional beyond perimeter commercial
flights at DCA with 24 beyond-perimeter round trip flights (10 to
limited incumbents or new entrants and 14 to incumbents) would
be permitted, and an additional eight could be added later if the

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pwalker on DSK7TPTVN1PROD with REPORTS

Secretary of Transportation determines that the first 24 did not
negatively impact the airport. It specifies that if an incumbent carrier that uses a slot for service to a large hub airport within the
perimeter receives one or more the 24 additional beyond-perimeter
round trip flights authorized by this provision, it must discontinue
the use of that slot for within-perimeter service and, in place of
that service, operate beyond-perimeter service. It prohibits the Secretary from granting any more than two slot exemptions to an air
carrier with respect to the same airport, except in the case of an
airport serving an area with a population of more than 1 million.
Any carrier receiving an exemption for beyond-perimeter service is
prohibited from using multi-aisle or wide body aircraft, and from
selling, trading, leasing, or otherwise transferring the rights to its
beyond-perimeter exemptions, except through a merger or acquisition, and must use the slot within 60 days of receiving the exemption. If an incumbent carrier that uses a slot for service to a large
hub airport within the perimeter receives one or more of the eight
additional exemptions authorized by this provision, it must discontinue the use of that slot for within-perimeter service and, in
place of that service, operate beyond-perimeter service. It authorizes Metropolitan Washington Aviation Authority (MWAA) to use
revenues derived at either DCA or Washington Dulles International Airport (IAD) for operating and capital expenses (including debt service, depreciation and amortization) at the other airport.
Conference Substitute
House and Senate bills merged to direct the Secretary of
Transportation to grant 16 exemptions for additional beyond perimeter commercial flights at Ronald Reagan Washington National
Airport (DCA). Of the 16 exemptions created, the Secretary shall
make eight available to limited incumbent air carriers and new entrant air carriers. When allocating such exemptions, the Secretary
shall consider the extent to which the exemptions will provide air
transportation with domestic network benefits in areas beyond the
perimeter; increase competition in multiple markets; not reduce
travel options for communities served by small hub airports and
medium hub airports within the perimeter; not result in meaningfully increased travel delays; enhance options for nonstop travel to
and from the beyond-perimeter airports that will be served as a result of those exemptions; have a positive impact on the overall level
of competition in the markets that will be served as a result of
those exemptions; or produce public benefits, including the likelihood that the service to airports located beyond the perimeter will
result in lower fares, higher capacity, and a variety of service options.
The Secretary shall also make available eight slot exemptions
for other incumbent air carriers qualifying for status as a non-limited incumbent carrier at DCA. Each such non-limited incumbent
air carrier may operate up to a maximum of two of the newly authorized slot exemptions. Each such non-limited incumbent air carrier, prior to exercising an exemption made available shall discontinue the use of a slot for service between DCA and a large hub
airport within the perimeter, and operate, in place of such service,

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pwalker on DSK7TPTVN1PROD with REPORTS

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

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PASSENGER AIR SERVICE IMPROVEMENTS

H425/S401

pwalker on DSK7TPTVN1PROD with REPORTS

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

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Conference Substitute
House and Senate bills merged and modified. The modified section includes House language requiring emergency contingency
plans by air carriers and modified to include large, medium, small,
and non-hub airports. Included in the section is modified language
that would give passengers the option to deplane and return to airport terminal when there is an excessive tarmac delay, except if
there is a safety, security or disruption of airport operations causes
that would result from deplanement. The Secretary of Transportation is to determine the length of a tarmac delay that would be
deemed ‘‘excessive’’. Lastly, the section includes House language on
consumer complaints and use of pesticides in a passenger aircraft.
DENIED BOARDING COMPENSATION

H428/S—
House bill
Section 428 requires the Secretary of Transportation to evaluate, within six months of enactment and every two years thereafter, the amount provided for denied boarding compensation and
issue a regulation to adjust such compensation as necessary.
Senate bill
No similar provision.
Conference Substitute
Senate bill. The Department of Transportation is already conducting a rulemaking on this subject.
DISCLOSURE OF PASSENGER FEES

H—/S405
House bill
No similar provision.
Senate bill
Section 405 directs the Secretary of Transportation to complete
a rulemaking that requires air carriers to provide the public a list
of charges, besides airfare (e.g., baggage fees and meal fees), that
the air carrier may be imposing on passengers. The Secretary
would be authorized to require an air carrier to make the list of
fees public, and the list must be updated every 90 days unless
there is no increase in the amount or type of fees being imposed.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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222
DISCLOSURE OF AIR CARRIERS OPERATING FLIGHTS FOR TICKETS SOLD
FOR AIR TRANSPORTATION

H—/S406
House bill
No similar provision.
Senate bill
Section 406 requires the Office of Aviation Consumer Protection in DOT to establish rules to ensure that all consumers are
able to easily and fairly compare airfares and charges paid when
purchasing tickets for air transportation, including taxes and fees.
This section requires taxes and fees be disclosed on the website
prior to the purchaser providing personal information and makes
failure to disclose an ‘‘unfair and deceptive practice.’’
Conference Substitute
Senate provision dropped because it is included in P.L. 111–
216, the Airline Safety and Federal Aviation Administration Extension Act of 2010.
NOTIFICATION REQUIREMENTS WITH RESPECT TO THE SALE OF
AIRLINE TICKETS

H—/S407
House bill
No similar provision.
Senate bill
Section 407 requires the Office of Aviation Consumer Protection and Enforcement within the DOT to establish rules to clarify
what must be disclosed in an aviation fare quote in order for consumers to easily and fairly compare airfares and charges among
carriers. It directs the Secretary of Transportation, in consultation
with the FAA, to prescribe such regulations as may be necessary.
Conference Substitute
House bill.
EAS CONNECTIVITY PROGRAM

H—/S411

pwalker on DSK7TPTVN1PROD with REPORTS

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

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223
such multiple code-sharing arrangements would improve air transportation services.
Conference Substitute
No provision.
EXTENSION OF FINAL ORDER ESTABLISHING MILEAGE ADJUSTMENT
ELIGIBILITY

H—/S412
House bill
No similar provision.
Senate bill
Section 412 extends a provision that specifies that the most
commonly used route between an eligible place and the nearest medium hub airport or large hub airport is to be used to measure the
highway mileage considered in reviewing any action to eliminate
compensation for EAS to such place, or terminate the location’s
compensation eligibility for such service. It would further terminate
any such final order on September 30, 2011.
Conference Substitute
Extends to September 30, 2015, the date on which the final
order issued under section 409 of Vision 100 shall terminate.
CONVERSION OF FORMER EAS AIRPORTS

H—/S414
House bill
No similar provision.
Senate bill
Section 414 requires the Secretary of Transportation to establish a program to provide general aviation conversion funding for
airports serving eligible places that the Secretary has determined
no longer qualify as eligible places for EAS subsidies.
Conference Substitute
No provision.
USE OF CERTAIN LANDS AT LAS VEGAS MCCARRAN INTERNATIONAL
AIRPORT

H—/S434

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
No similar provision.
Senate bill
Section 434 authorizes Clark County, Nevada, to permit the
use of certain lands in the Las Vegas McCarran International Airport Environs Overlay District for transient lodging and associated
facilities. This provision prohibits the construction of facilities that

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224
would constitute a hazard to air navigation, result in an increase
to minimum flight altitudes, or otherwise pose a significant adverse
impact on airport or aircraft operations.
Conference Substitute
House bill.
TITLE V—ENVIRONMENTAL STREAMLINING AND
STEWARDSHIP
OVERFLIGHTS OF NATIONAL PARKS

H501/S709
House bill
Section 501 exempts operators in parks with 50 or fewer annual air tour flights from the statutory permitting requirement,
with a provision for the National Park Service (NPS) director to
withdraw an exemption on a park-specific basis if necessary to protect park resources or visitor experiences. It allows NPS and FAA
to enter into a voluntary agreement with a commercial air tour operator as an alternative to creation of an air tour management
plan. FAA and NPS must solicit public comments and must consult
with occupants of affected tribal lands before entering into a voluntary agreement. It provides that a voluntary agreement may require payment of overflight fees. The FAA and NPS are permitted
to terminate a voluntary agreement if: 1) NPS finds the agreement
no longer protects park resources; or 2) FAA determines operations
under the agreement adversely affect safety or the national aviation system. It permits modifications to interim operating authority, and allows a grant of interim authority to a new entrant operator, if: 1) the operator provides adequate information to NPS and
FAA; 2) FAA determines modification would not adversely affect
safety or the national aviation system; and 3) NPS determines
modification would not adversely affect park resources. Commercial
air tour operators must report the number of commercial air tours
over parks.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 709 allows air tour overflights over a national park
when a voluntary agreement has been reached between the operator and the appropriate representative of the national park. This
section provides a waiver from the general rule prohibiting tour operations over national parks for national parks that have 100 or
fewer air tour overflights each year. The Secretary of the Interior
is instructed to assess a fee on commercial air tour operators operating over a national park to be used to fund the development of
air tour management plans. It prescribes penalties for operators
that do not pay this fee. This section provides the Director of NPS
with flexibility in determining how to manage air tours at Crater
Lake National Park.
Conference Substitute
House bill modified to include language on flexibility for Crater
Lake National Park.

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225
STATE BLOCK GRANT PROGRAM

H502/S209
House bill
Section 502 requires the issuance of guidance for carrying out
the AIP State Block Grant Program (SBGP) rather than regulations. It adds to required standards a State must agree to meet in
order to be eligible for a grant under the program with: National
Environmental Policy Act (NEPA) of 1969 standards, state and
local environmental policy acts, executive orders, agency regulations and guidance, and other federal environmental requirements.
Furthermore, it adds a provision that requires any federal agency,
except the FAA, that is responsible for issuing an approval, license
or permit to ensure compliance with a federal environmental requirement applicable to a project to be carried out by a State using
funds from a block grant must: 1) coordinate and consult with the
State; 2) use the environmental analysis prepared by the State for
the project; and 3) supplement such analysis as necessary.
Senate bill
Section 209 codifies current practice that State participants in
the State Block Grant Program have responsibility and authority
to comply with applicable environmental requirements for projects
at non-commercial service airports within the purview of the
SBGP. The FAA administers the SBGP by authorizing participating states once a year to receive a block of funds for any eligible
non-primary airport project. This section would make a minor
change to 49 U.S.C. section 47128(a) by replacing the term ‘‘regulations’’ with ‘‘guidance’’ because the FAA has issued guidance in the
form of the AIP Handbook, 5100.38, to implement its airport improvement program. It establishes a pilot program for up to three
States that are currently not in the program to participate in the
program.
Conference Substitute
House bill.
AIRPORT FUNDING OF SPECIAL STUDIES OR REVIEWS

H503/S210

pwalker on DSK7TPTVN1PROD with REPORTS

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

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226
Conference Substitute
House bill.
GRANT ELIGIBILITY FOR ASSESSMENT OF FLIGHT PROCEDURES

H506/S211
House bill
Section 506 authorizes grants to airport operators to assist in
completing environmental review and assessment activities for proposes to implement flight procedures that have been approved for
airport noise compatibility planning purposes. It permits the Administrator to accept funds from an airport sponsor, including
funds provided in noise compatibility planning grants, to hire additional staff or consultants to facilitate timely review and competition of environmental activities associated with the proposed
changes in flight procedures. Funds received under this section
shall be credited as offsetting collections to the account that finance
the activities and services for which the funds are accepted; shall
be available for expenditure only to pay the costs of activities and
services for which the funds are accepted; and shall remain available until expended.
Senate bill
Section 211 is a similar provision, but it specifies that funds
received under this authority are exempt from the procedures applicable to gifts received by the Administrator.
Conference Substitute
House bill.
DETERMINATION OF FAIR MARKET VALUE OF RESIDENTIAL PROPERTIES

H507/S—
House bill
Section 507 requires the Secretary of Transportation to ensure
that an appraisal for fair market value of any property to be acquired disregards any decrease or increase in the value caused by
the project for which the property is being acquired or by the likelihood that the property would be acquired. It directs that physical
deterioration within reasonable control of the owner should be considered.
Senate bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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227
PROHIBITION ON OPERATING CERTAIN AIRCRAFT WEIGHING 75,000
POUNDS OR LESS NOT COMPLYING WITH STAGE 3 NOISE LEVELS

H508/S710
House bill
Section 508 requires that all civil subsonic jet aircraft under
75,000 pounds must meet Stage 3 noise levels within the 48 contiguous states by December 31, 2016, with some exceptions for the following types of temporary operations: 1) to sell, lease or use the
aircraft outside the 48 contiguous States; 2) to scrap the aircraft;
3) to obtain modifications to the aircraft to meet Stage 3 noise levels; 4) to perform scheduled heavy maintenance or significant modifications at an overseas maintenance facility; 5) to deliver the aircraft to an operator leasing the aircraft from the owner or return
the aircraft to the lessor; 6) to prepare, park, or store aircraft in
anticipation of above activities; 7) to provide transport of persons
or goods in an emergency situation; and 8) to divert the aircraft to
an alternative airport on account of weather, or safety reasons. It
authorizes the Secretary of Transportation to prescribe regulations
as necessary.
Senate bill
Section 710 is a similar provision with minor technical differences, including a different deadline set at December 31, 2014.
Airports are allowed to opt-out of this prohibition, at which time
the Secretary of Transportation will post notices on its website or
another place easily accessible to the public.
Conference Substitute
House bill modified, moving the deadline to December 31,
2015.
AIRCRAFT DEPARTURE QUEUE MANAGEMENT PILOT PROGRAM

H509/S—
House bill
Section 509 directs the Secretary of Transportation to carry out
a pilot program at up to five public-use airports to design, develop,
and test new air traffic flow management technology to better manage the flow of aircraft on the ground and reduce ground holds and
idling times for aircraft. In selecting participating airports, the Secretary must give priority consideration to airports at which improvements in ground control efficiencies are likely to achieve the
greatest fuel savings or air quality or other environmental benefits,
as measured by the amount of reduced fuel, reduced emissions, or
other environmental benefits. No more than $2.5 million may be
expended at any single public-use airport.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
No similar provision.
Conference Substitute
House bill.

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228
HIGH-PERFORMANCE, SUSTAINABLE, AND COST-EFFECTIVE ATC
FACILITIES

H510/S—
House bill
Section 510 requires the implementation of sustainable practices for the incorporation of energy-efficient design, equipment,
systems and other measures in the construction and major renovation of air traffic control facilities to the maximum extent practicable.
Senate bill
No similar provision.
Conference Substitute
House bill.
SENSE OF CONGRESS

H511/S—
House bill
Section 511 expresses Sense of Congress that the European
Union (EU) should not extend its emissions trading proposal to
international civil aviation operations without working through
International Civil Aviation Organization (ICAO) and other relevant air services agreements, and that the EU should work with
ICAO to develop a consensual approach to addressing aircraft
greenhouse gas emissions. It expresses the Sense of Congress that
the U.S. Government should use all political, diplomatic, and legal
tools at their disposal to ensure that the EU’s emission trading
scheme is not applied to aircraft registered by the U.S. or the operators of those aircraft, including the mandates that U.S. carriers
provide emissions data to and purchase emissions allowances from
or surrender emissions allowances to the EU Member states.
Senate bill
No similar provision.
Conference Substitute
House bill.
AVIATION NOISE COMPLAINTS

pwalker on DSK7TPTVN1PROD with REPORTS

H512/S—
House bill
Section 512 requires owners or operators of a large hub airport
to publish a telephone number to receive noise complaints on the
airport’s website within 90 days of enactment. Any owner or operator who receives 25 or more complaints per year will be required
to submit an annual report to the FAA regarding the number of
complaints and a summary of the nature of the complaints, which
the Administrator must make available to the public electronically.

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Senate bill
No similar provision.
Conference Substitute
House bill modified to remove the annual reporting requirement.
NEXTGEN ENVIRONMENTAL EFFICIENCY PROJECTS STREAMLINING

H503/S—
House bill
Section 503 incorporates NextGen environmental efficiency
projects into projects that are subject to streamlined environmental
review and given high priority in environmental review. These include: 1) an airport capacity enhancement project at a congested
airport; and 2) a NextGen environmental efficiency project at the
35 largest airports (i.e., OEP airports) or any congested airports. It
also clarifies the jurisdictional agencies and the lead agency responsibility for these projects. Defines ‘‘NextGen environmental efficiency project’’ as a NextGen project that develops and certifies
performance-based navigation procedures; or develops other environmental mitigation projects the Secretary of Transportation may
designate as facilitating a reduction in noise, fuel consumption, or
emissions from air traffic operations.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
NOISE COMPATIBILITY PROGRAMS

H505/S—
House bill
Section 505 requires operators applying for noise compatibility
programs to state the measures they have taken or propose to take
to reduce existing noncompatible uses and prevent introducing additional noncompatible uses in the area. It adds as one of the measures, conducting comprehensive land use planning jointly with
neighboring local jurisdictions for community redevelopment in an
area in which land or other property interests have been acquired
by the operator, to encourage and enhance redevelopment opportunities that reflect zoning and uses that will prevent the introduction of additional incompatible uses and enhance redevelopment potential.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
No similar provision.
Conference Substitute
Senate bill.

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230
ENVIRONMENTAL MITIGATION DEMONSTRATION PILOT PROGRAM

H—/S213
House bill
No similar provision.
Senate bill
Section 213 authorizes the Secretary of Transportation to carry
out up to six environmental mitigation projects at public-use airports and make grants under special apportionment funding for
these demonstrations. To be eligible for the pilot program, an airport would be required to be open to the public, with priority consideration given to projects that would achieve the greatest reductions in aircraft noise, airport emissions, or airport water quality
impacts. The federal government would be limited to providing 50
percent of the cost for the projects and limited to a total amount
per project of $2.5 million.
Conference Substitute
House bill.
PILOT PROGRAM FOR ZERO EMISSION AIRPORT VEHICLES

H—/S609
House bill
No similar provision.
Senate bill
Section 609 requires the Secretary of Transportation to establish a pilot program to foster the acquisition and use of zero emission vehicles on airports. Priority is given to those airports in nonattainment areas and where the greatest air quality benefits will
be achieved. In 18 months, the Secretary of Transportation shall
report to Congress on the effectiveness of the pilot program.
Conference Substitute
Senate bill modified to: change ‘‘shall’’ to ‘‘may’’ when directing
the Secretary of Transportation to establish a pilot program; allowing public-use airports to be eligible in the pilot program; permitting the Secretary of Transportation to consider applications from
public-use airports not in the prescribed areas if there is a shortage
of applicants; and allowing participants to use university transportation centers. New language is added that: establishes performance measures; creates assessments of the data collected used in
the program; and makes a technical change.
INCREASING THE ENERGY EFFICIENCY OF AIRPORT POWER SOURCES

pwalker on DSK7TPTVN1PROD with REPORTS

H—/S610
House bill
No similar provision.

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Senate bill
Section 610 requires the Secretary of Transportation to establish a program to encourage airport operators to assess their energy requirements and identify ways to reduce emissions and increase energy efficiency. The Secretary of Transportation may
make grants to eligible airports to acquire or construct equipment
and infrastructure to reduce emissions and improve energy efficiency.
Conference Substitute
Senate bill modified by removing references to ‘‘reducing harmful emissions’’ and makes minor technical corrections.
TITLE VI—EMPLOYEES AND ORGANIZATION
FAA PERSONNEL MANAGEMENT SYSTEM

H601/S313

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
Section 601 reforms the process by which the FAA resolves
labor disputes with employee unions arising in the collective bargaining process. It requires the FAA and employee representatives
to use the services of the Federal Mediation and Conciliation Service (FMCS). If they are unable to come to an agreement on labor
issues, or, by mutual agreement, they may adopt alternate procedures to resolve disputes. If the mediation is unsuccessful, the parties must submit their issues to the Federal Service Impasses
Panel (FSIP) that will assist the parties in resolving the dispute by
asserting jurisdiction and ordering binding arbitration by a private
arbitration board of three members. The board will result from Executive Director of the FSIP will request a list of 15 names from
the Director of the FMCS, the parties will select one arbitrator
each from the list, and the two arbitrators selected with then
choose the third. The arbitration board must render a decision
within 90 days after the date of its appointment, and take into account the following factors: 1) the effect of its decision on the FAA’s
ability to attract and retain a qualified workforce; 2) the effect of
its decision on the FAA budget; 3) the effect of its decision on other
FAA employees; and 4) any other factors that would assist the
board in reaching a fair resolution. Upon reaching a voluntary
agreement or at the conclusion of the binding arbitration, the final
agreement will be subject to ratification by the exclusive bargaining representative of the employees, if so requested by the bargaining representative. The final agreement must also be approved
by the head of the agency.
Senate bill
Section 313 is a similar provision, but it specifies that jurisdiction over enforcement claims is limited to the U.S. District Court
for the District of Columbia.

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Conference Substitute
House bill modified by deleting language directing the board to
take into consideration ‘‘the effect of its arbitration decisions on
other Federal Aviation Administration employees’’ in making decisions.
PRESIDENTIAL RANK AWARD PROGRAM

H602/S307
House bill
In 1996, the FAA reformed its personnel system under special
authority provided by Congress (now codified under 49 U.S.C. section 40122), which exempted the FAA from many requirements of
the federal government’s personnel system, including the Presidential Rank Award Program. Section 602 would change the exemption and, through an amendment to 49 U.S.C. section 40122,
allow the FAA’s executives and senior professionals to participate
in the program.
Senate bill
Section 307 is the same provision.
Conference Substitute
House bill.
COLLEGIATE TRAINING INITIATIVE STUDY

H608/S—
House bill.
Section 608 requires the U.S. Government Accountability Office to conduct a study on training options for graduates of the Collegiate Training Initiative, and submit the study to Congress within six months of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.
FRONT LINE MANAGER STAFFING

pwalker on DSK7TPTVN1PROD with REPORTS

H610/S716
House bill
Section 610 requires the Administrator to commission an independent study on front-line manager staffing requirements in air
traffic control facilities, and submit the final report to Congress
within nine months of enactment. Some considerations to take into
account are: managerial tasks; number of supervisory positions;
coverage requirements in relation to traffic demands; facility type;
complexity of traffic and managerial responsibilities; and proficiency and training requirements.

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Senate bill
Section 716 requires the Administrator within 45 days after
enactment to study air traffic control front line manager staffing
requirements and submit any determinations made as a result of
the study to the Congress within six months after enactment.
Conference Substitute
House bill.
FAA TECHNICAL TRAINING AND STAFFING

H603/S708(a),(b)
House bill
Section 603 requires the Administrator to conduct a study on
the adequacy of FAA’s technical training strategy and improvement
plan for FAA transportation systems specialists. The plan must include: recommendations to improve technical training strategy and
improvement planning; a description of actions having been undertaken; and recommendations regarding cost-effective approaches to
training. The FAA is to report to Congress within one year of enactment. It directs the Administrator to contract with the National
Academy of Sciences within 90 days of enactment to conduct a
study on the assumptions and methods FAA uses to estimate staffing needs for FAA transportation systems specialists and to ensure
proper maintenance and certification in the most cost-effective
manner. The Academy must submit its report to Congress one year
after contracted.
Senate bill
Section 708(a) and (b) similar provisions but it requires the
U.S. Government Accountability Office (GAO) to study FAA Airway
Transportation Systems Specialists training and report to Congress
within a year of enactment. It includes air traffic controllers and
engineers as part of the study; and, the Academy must report to
Congress on its study 24 months after the date of execution of the
contract for the study.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill modified removing language requiring the study to
be done in the most cost effective manner. The modified provision
directs the National Academy of Sciences, when conducting the
study on the assumptions and methods used by FAA to estimate
staffing needs for FAA systems specialists, to consult with the exclusive bargaining representative of systems specialists. Additionally, language was added requiring the National Academy of
Sciences to ‘‘include recommendations for objective staffing standards that maintain the safety of the national airspace.’’

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SAFETY CRITICAL STAFFING

H604/S708(c),(d)
House bill
Section 604 requires the Administrator to implement, to the
extent practicable and in the most cost-effective manner, the staffing model for aviation safety inspectors by October 1, 2011, following the recommendations outlined in the ‘‘Staffing Standards
for Aviation Inspectors’’ report issued by the National Academy of
Sciences in 2007. The FAA is required to consult with interested
parties, including aviation safety inspectors, and submit the staffing model to Congress on an annual basis.
Senate bill
Section 708(c) and (d) directs the FAA to increase inspector
staffing to levels in its staffing model. The Administrator is required to develop a staffing model for aviation safety inspectors,
but differs from the House in that it allows 12 months from the
date of enactment, development of a staffing model, but does not
require the Administrator to follow the Academy’s recommendations, and requires inspector staffing levels to be at least at the levels indicated in the staffing model. It specifies that no later than
180 days after enactment, the Administrator shall submit a report
to Congress on the future of flight service stations in Alaska. The
report will include: 1) an analysis of the number of flight service
specials needed; 2) training needed and need for formal training
and hiring program; 3) a schedule for necessary inspections, 4) upgrades and modernization of stations and equipment; and 5) a description of interaction between flight service stations operated by
FAA and those operated by contractors.
Conference Substitute
House bill modified to require the FAA to consult with the exclusive bargaining representative for aviation safety inspectors
when implementing the staffing model. Additionally, the date of
the report was changed from October 1 of each year to January 1
of each year.
AIR TRAFFIC CONTROL SPECIALIST QUALIFICATION TRAINING AND
SCHEDULING

pwalker on DSK7TPTVN1PROD with REPORTS

H606/S—
House bill
Section 606 authorizes the Administrator to appoint qualified
air traffic control (ATC) specialist candidates for placement directly
in ATC facilities. ATC specialists will receive the same benefits and
compensation as any other developmental controller. Within 18
months after enactment, the FAA will submit to Congress a report
that evaluates the effectiveness of the ATC specialist qualification
training. If the Administrator determines that ATC specialists are
more qualified in carrying out duties than ATC specialists hired
from general public, the Administrator shall increase the number
of appointments of candidates with such certification. It includes

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reimbursement for travel expenses associated with certifications
from education entity that provided the training.
Senate bill
No similar provision.
Conference Substitute
House modified to change the due date of the required report
from 18 months after enactment to two years after enactment.
FAA AIR TRAFFIC CONTROLLER STAFFING

H605/S708
House bill
Section 605 directs the FAA to enter into an arrangement,
within 90 days, with the National Academy of Sciences to conduct
a study of the air traffic controller standard used by the FAA to
estimate staffing needs for FAA air traffic controllers to ensure the
safe operation of the NAS in the most cost-effective manner. The
study must include examination of representative information on
productivity, human factors, traffic activity, and improved technology on ATC, as well as an examination of recent Academy reviews of models from MITRE, and consideration of Administration’s
current and estimated budgets. The Academy is required to consult
employee groups and industry representative in conducting the
study. The Academy must transmit the study to Congress within
two years of enactment.
Senate bill
Section 708 is a similar provision, but it includes Airway
Transportation Systems Specialists and engineers as part of the
study.
Conference Substitute
House bill modified to require the National Academy of
Sciences to consult with the exclusive bargaining representative of
air traffic controllers in conducting the study.
ASSESSMENT OF FAA AIR TRAFFIC CONTROLLER TRAINING PROGRAMS

pwalker on DSK7TPTVN1PROD with REPORTS

H607/S516
House bill
Section 607 requires the Administrator to conduct a study to
assess the adequacy of training programs for air traffic controllers,
including the FAA’s technical training strategy and improvement
plan, and submit the study to Congress within six months of enactment. The study will include a review of current training systems,
an analysis of competencies required of air traffic control for successful performance, an analysis of competence projected to be required in NextGen, an analysis of various training approaches, recommendations to improve current training system, and the most
cost effective approach.

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Senate bill
Section 516 requires FAA to conduct a comprehensive review
of its Academy and facility training efforts, and establish standards
to identify the number of developmental controllers that can be accommodated by each facility.
Conference Substitute
House and Senate bills modified and merged. This section includes Senate and House language, with language added requiring
the Inspector General of the Department of Transportation to conduct an assessment of FAA’s air traffic controller scheduling practices.
FAA FACILITY CONDITIONS

H609/S323

pwalker on DSK7TPTVN1PROD with REPORTS

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

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237
riorate to unsafe levels. The task force also must submit a report
to Congress and the Administrator regarding its recommendations
and activities within 60 days. The Administrator would be required
to submit a plan and timeline to implement the task force’s recommendations within 30 days after receiving the task force’s report.
Conference Substitute
House bill.
TECHNICAL CORRECTION

H—/S707
House bill
No similar provision.
Senate bill
Section 707 provides technical corrections to guarantee that
the Merit Systems Protection Board has jurisdiction to investigate
claims made against FAA, and has the enforcement ability at the
agency that it does for all other federal employees.
Conference Substitute
Senate bill.
BACK PAY

H—/S707(4)(J)
House bill
No similar provision.
Senate bill
Section 707(4) (J) restores application of the Back Pay Act to
FAA employees prospectively (i.e., does not have retroactive application to previously decided MSPB cases).
Conference Substitute
House bill.
FAMILY MEDICAL LEAVE ACT

H—/S707(4)(K)
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

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

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238
TITLE VII—AVIATION INSURANCE
GENERAL AUTHORITY

H701/S701(c)
House bill
Section 701 requires the Secretary of Transportation to extend
the current aviation war risk insurance policies until September
30, 2013, and authorizes the Secretary to extend them until December 31, 2013. After December 31, 2021, coverage for the risks
provided by the extended policies shall be provided in an airline industry sponsored risk-sharing arrangement approved by the Secretary. Premiums collected by the Secretary from the airline industry after September 22, 2001, through December 31, 2021, for any
policy under this subsection, plus interest and less paid or pending
claims, must be transferred to risk-sharing arrangement approved
by the Secretary.
Senate bill
Section 701(c) is a similar provision, but it does not authorize
a follow-on industry shared-risk program.
Conference Substitute
House bill modified to remove language creating a successor
program.
EXTENSION OF AUTHORITY TO LIMIT THIRD PARTY LIABILITY

H702/S701(a)
House bill
Section 702 extends for air carriers the current limitation of liability to third parties for losses arising out of acts of terrorism to
December 31, 2013. Current law (section 44303(b)) allows the Secretary of Transportation to limit an airline’s third-party liability to
$100 million and also prohibits punitive damages against either an
airline or the Government for any cause resulting from a terrorist
event. A principal objective of the limitation was to encourage commercial insurance companies to provide a reasonably priced
amount of third party war risk insurance by defining the maximum
third party liability exposure of the airline for a single event. The
provision was later expanded by Congress at the request of aircraft
manufacturers and aircraft engine manufacturers to permit DOT to
similarly limit third-party liability for these parties.
Senate bill
Section 701(a) is the same provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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239
CLARIFICATION OF REINSURANCE AUTHORITY

H703/S—
House bill
Section 703 amends the reinsurance section in title 49 U.S.C.
to clarify that the DOT may, as a risk mitigation technique, purchase reinsurance from commercial reinsurers to supplement payment of claims from the aviation insurance revolving fund.
Senate bill
No similar provision.
Conference Substitute
House bill.
USE OF INDEPENDENT CLAIMS ADJUSTERS

H704/S—
House bill
Section 704 authorizes the FAA to use commercial insurance
carriers to underwrite insurance and adjust claims, and to use
claims adjusters independent of an insurance underwriting agent.
This permits expedited claims in the U.S. and foreign jurisdictions.
Senate bill
No similar provision.
Conference Substitute
House bill.
TITLE VIII—MISCELLANEOUS
DISCLOSURE OF DATA TO FEDERAL AGENCIES IN INTEREST OF
NATIONAL SECURITY

H801/S—
House bill
Section 801 clarifies that the FAA has limited authority to release data and reports that are pulled from the FAA’s record systems, which are subject to the Privacy Act, to other federal agencies in the interest of national security.
Senate bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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FAA AUTHORITY TO CONDUCT CRIMINAL HISTORY RECORD CHECKS

H802/S505
House bill
Section 702 provides legal authority for the FAA to continue to
access the National Crime Information Center and related State
criminal history databases for certification purposes only to conduct
a criminal history background check of an airman in the criminal
repositories of the Federal Bureau of Investigation and States by
submitting fingerprint based repository in compliance with the National Crime Prevention and Privacy Compact Act, and to receive
relevant criminal history record regarding airman check. In accessing repository information, the FAA shall be subject to procedures
established by the Departments of Justice or State as appropriate.
The Administrator may not use authority to conduct criminal investigations. The Administrator shall receive reimbursement to
process the fingerprint based checks in providing these services.
The Administrator shall designate employees of the FAA to carry
out these actions.
Senate bill
Section 505 is a similar provision.
Conference Substitute
House bill.
CIVIL PENALTIES TECHNICAL AMENDMENTS

H803/S—
House bill
Section 803 applies civil penalties to violations of chapter 451
on Alcohol and Controlled Substance Testing.
Senate bill
No similar provision.
Conference Substitute
House bill.
CONSOLIDATION AND REALIGNMENT OF FAA SERVICES AND FACILITIES

pwalker on DSK7TPTVN1PROD with REPORTS

H804/S308
House bill
Section 804 directs the Administrator to develop proposed criteria for use in making recommendations for the realignment and
consolidation of FAA services and facilities, and publish the proposed criteria within 30 days of enactment. The proposed criteria
would be open to public comment for 30 days, and the FAA must
publish final criteria within 90 days of enactment. It requires the
Administrator to make recommendations for the realignment and
consolidation of FAA services based on the final criteria and a justification for each recommendation. This information will be pub-

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241
lished and transmitted to Congress within 120 days of enactment.
The Administrator is directed to submit the recommendations to a
new Aviation Facilities and Services Board (not subject to the Federal Advisory Committee Act), consisting of: the Secretary of Transportation (DOT) or designee; two private sector members appointed
by the DOT Secretary; and a U.S. Government Accountability Organization (GAO) representative (to be a non-voting member).
Members would serve for three year terms. The Board will hold
public hearings and develop a final report (with GAO input if requested by the Board) containing the Board’s findings and conclusions based on public comments. The Board must publish the report and transmit a copy to Congress. The Administrator is prohibited from carrying out a Board recommendation if Congress passes
a joint resolution of disapproval within 30 days of issuance of the
Board’s report. It authorizes the Administrator to make additional
recommendations every two years. It specifies that Members of the
Board will not receive compensation except for work injuries or
travel expenses. The Administrator shall make available to the
Board such staff, information and administrative services as may
be required enabling the Board to carry out its responsibilities. In
order for the Board to carry out its duties, the Administrator is authorized to appropriate for each of FYs 2011 through 2014,
$200,000 to carry out this section.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 308 creates a specific process for the FAA to complete
a comprehensive study and analysis of the how the agency might
realign its services and facilities to help reduce capital, operating,
maintenance, and administrative costs on an agency-wide basis
with no adverse effect on safety. The FAA would be required to develop criteria for realignment within nine months of passage and
make any recommendations for action within nine months of the
publication of the criteria. The Air Traffic Control Modernization
Oversight Board would then be required to study the FAA’s recommendations, provide opportunity for public comment, and report
the Board’s recommendations to Congress. The Administrator
would be prohibited from consolidating additional approach control
facilities into the Southern California TRACON, the Northern California TRACON, the Miami TRACON, or the Memphis TRACON
until the Board’s recommendations are completed.
Conference Substitute
House and Senate bills merged and modified. The language
now requires the Administrator to develop, in conjunction with the
Chief NextGen Officer and Chief Operating Officer of the Air
Transportation Organization, a National Facilities Realignment
and Consolidation Report within 120 days of enactment and allow
45 days for the submission of public comments on that report. The
report shall be developed with the participation of: 1) representatives of labor organizations representing operations and maintenance employees of the air traffic control system; and 2) industry
stakeholders. The purpose of this report is to support the transition
to NextGen and to reduce capitol, operating, maintenance, and administrative costs of the FAA without adversely affective safety.

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The report shall include recommendations with justification and
project costs and savings. It instructs the Administrator to submit
a report to Congress within 60 days after the last day of the public
comment period on the Administrator’s recommendations on realignment and consolidation of services and facilities of the FAA
and it directs the Administrator to follow this report during the realignment process. It maintains the House language on Congressional Disapproval which prohibits the Administrator for carrying
out recommendation in the report should a joint resolution of disapproval be enacted within 30 days of submission of the report to
Congress.
LIMITING ACCESS TO FLIGHT DECKS OF ALL-CARGO AIRCRAFT

H805/S—
House bill
Section 805 requires the FAA, within 180 days of enactment,
to assess the feasibility of developing a physical means, or a combination of physical and procedural means, to prohibit individuals,
other than authorized flight crewmembers, from accessing the
flight decks of all-cargo aircraft. It requires a report within one
year of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.
CONSOLIDATION OR ELIMINATION OF OBSOLETE, REDUNDANT, OR
OTHERWISE UNNECESSARY REPORTS; USE OF ELECTRONIC MEDIA

H806/S721
House bill
Section 806 requires the Administrator to issue a report containing a list of obsolete, redundant, or otherwise unnecessary reports that the FAA is required by law to submit to the Congress
or publish. It requires an estimate of the cost savings that would
result from the elimination or consolidation of those reports.
Senate bill
Section 721 is an identical provision.
Conference Substitute
House and Senate bills.
PROHIBITION ON USE OF CERTAIN FUNDS

pwalker on DSK7TPTVN1PROD with REPORTS

H807/S—
House bill
Section 807 prohibits the Secretary of Transportation from
using funds available in this act to name, rename, designate or re-

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designate any authorized project or program after an individual
who is currently serving in Congress.
Senate bill
No similar provision.
Conference Substitute
House bill.
STUDY ON AVIATION FUEL PRICES

H808/S727
House bill
Section 808 requires the U.S. Government Accountability Office (GAO) to conduct a study and report to Congress within 180
days of enactment on the impact of aviation fuel price increases on
the Airport and Airway Trust Fund and the aviation industry in
general.
Senate bill
Section 727 is an identical provision.
Conference Substitute
Senate bill.
WIND TURBINE LIGHTING

H809/S611
House bill
Section 809 directs the Administrator to conduct a study, make
recommendations, and report to Congress on wind turbine lighting
systems within one year of the date of enactment. The study and
recommendations must include the effect of wind turbine lighting
on residential areas, the safety associated with alternative lighting
strategies, the potential energy savings, and the feasibility of implementing alternative lighting strategies.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 611 requires the Administrator to survey and assess
the leases for critical FAA facility sites and determine how close
these facilities are to wind farms or areas suitable for the construction of wind farms. Following the assessment, the FAA would be
required to report to Congress and the U.S. Government Accountability Office (GAO) on its findings and recommendations. It would
require the GAO to assess the potential impact wind farms have
on the FAA’s navigational aids and would require an assessment
on methods and restrictions to mitigate the effects of wind farms
on navigational aids. Upon receiving the GAO report, the FAA
would be directed to issue guidelines for the construction of wind
farms near critical FAA facilities.
Conference Substitute
House bill.

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AIR-RAIL CODE SHARING STUDY

H810/S725
House bill
Section 810 directs the U.S. Government Accountability Office
(GAO) to conduct a study regarding existing airline and intercity
passenger rail code-sharing arrangements, and the feasibility of increasing intermodal connectivity of airline and intercity passenger
rail facilities and systems to improve passenger travel, and submit
the study to Congress within six months of enactment. The GAO
is directed to consider: 1) the potential costs to taxpayers and other
parties, and the benefits of the implementation of more integrated
scheduling between airlines and Amtrak or other intercity passenger rail carriers; 2) airport and intercity passenger rail operations that can improve connectivity between airports and intercity
passenger rail facilities; 3) the experience of other countries with
airport and intercity passenger rail connectivity; and 4) other
issues the GAO deems appropriate.
Senate bill
Section 725 is a similar provision, but the GAO considerations
are not as extensive. It requires the report to be completed within
one year.
Conference Substitute
House bill.
D.C. METROPOLITAN AREA SPECIAL FLIGHT RULES AREA

H811/S—
House bill
Section 811 requires the Administrator to work with the Secretaries of Defense and Homeland Security on a plan to decrease the
operational impacts and improve general aviation access to the
Washington, D.C. region impacted by the D.C. Metropolitan Area
Special Flight Rules Area, and submit the plan to Congress within
six months of enactment. The plan must outline specific changes to
the D.C. Metropolitan Area Special Flight Rules Area that will decrease operational impacts and improve general aviation access to
airports in the Washington, D.C. region that are currently impacted by the zone.
Senate bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Substitute
House bill.

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FAA REVIEW AND REFORM

H812/S—
House bill
Section 812 requires the Administrator to undertake a thorough review of each program, office, and organization within the
FAA, including the Air Traffic Organization, to identify: 1) duplicative positions, programs, roles or offices; 2) wasteful practices; 3)
redundant, obsolete, or unnecessary functions; 4) inefficient processes; and 5) ineffectual or outdated policies. Directs the Administrator to undertake such actions as may be necessary to address
the findings of the review, streamline and reform FAA functions,
and submit a report to Congress within 150 days of enactment.
Senate bill
No similar provision.
Conference Substitute
House bill.
USE OF MINERAL REVENUE AT CERTAIN AIRPORTS

H815/S224
House bill
Section 815 specifies that the FAA may declare certain revenue
derived from, or generated by mineral extraction at a general aviation airport to be revenue greater than the long term projects, operation, maintenance, planning and capacity needs of the airport. If
the Administrator issues a declaration, the airport sponsor may allocate to itself or governing body within limits of the airport’s locality the revenue identified in declaration for use in carrying out a
Federal, State or local transportation infrastructure project. In generating revenue from mineral rights the airport sponsor shall not
charge less than fair market value. The airport sponsor and Administrator shall agree on a 20-year capital improvement program
that includes projected costs, charges and fees. Furthermore, the
airport sponsor shall agree in writing to waive all rights to receive
entitlement funds or discretionary funds, and operate as a publicuse airport until the Administrator grants a request to allow airport to close. The airport sponsor shall create a provisional fund for
current and future environmental impacts, assessments and mitigation plans. The Administrator shall conduct review and issue a
determination within 90 days following receipt of an airport sponsor’s application and requisite documentation.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 224 is a similar provision, but it contains a five-year
capital improvement program.
Conference Substitute
Senate bill.

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CONTRACTING

H818/S—
House bill
Section 818 permits the Administrator to conduct a review,
and submit to relevant Committees, a report describing how FAA
weighs economic vitality of a region when considering contract proposals for training facilities.
Senate bill
No similar provision.
Conference Substitute
House bill modified by removing language on ‘‘economic vitality’’ and inserting language that requires: 1) the proposal is drafted
so that all parties can fairly compete; and 2) the proposal takes
into consideration the most cost-effective location, accessibility, and
services options.
FLOOD PLANNING

H819/S—
House bill
Section 819 permits the Administrator, in consultation with
the Federal Emergency Management Administration, to conduct a
review and submit to relevant committees a report on the state of
preparedness and response capability for airports located in flood
plains to respond to and seek assistance in rebuilding after catastrophic flooding.
Senate bill
No similar provision.
Conference Substitute
House bill modified to include a direction to the Federal Emergency Management Agency (FEMA) to consider as an eligible activity for purposes of the National Flood Insurance Act of 1968, ‘‘the
demolition and rebuilding of properties to at least base flood levels
or higher’’.
HISTORICAL AIRCRAFT DOCUMENTS

pwalker on DSK7TPTVN1PROD with REPORTS

H823/S—
House bill
Section 823 directs the Administrator to take actions, as seen
necessary, to preserve original aircraft type certificate engineering
and technical data in possession of the FAA. No later than one year
after date of enactment, the Administrator shall revise an executive order to prohibit destruction of historical aircraft documents.
The Administrator shall consult with Archivist of the U.S. and Administrator of General Services on the best methods to preserve
these documents. The Administrator shall make these documents

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available under Freedom of Information Act. This provision does
not affect the rights of the holder or owner of a type certificate
identified above, or require holders or owners to provide, surrender
or preserve any original or duplicate engineering data to FAA. Notwithstanding any other provision of the law, the holder of a type
certificate identified in this section shall not be responsible for any
continued airworthiness or FAA regulatory requirements.
Senate bill
No similar provision.
Conference Substitute
House bill modified by changing the date from one year to
three years for the revision of order. The language specifying that
holders of type certificates shall not be responsible for any continued airworthiness is deleted. New language is added narrowing the
definition of applicability to this section to those ‘‘having a standard airworthiness certificate issued prior to the date the documents
are released to a person by the FAA under subsection (b)(1).
RELEASE FROM RESTRICTIONS

H824/S219
House bill
Section 824 authorizes the Secretary of Transportation to grant
an airport, city or county a release from any of the terms, conditions, reservations or restrictions contained in a deed in which the
U.S. conveyed to the airport, city or county property for airport
purposes pursuant to section 16 of Federal Airport Act or section
23 of the Airport and Airway Development Act. Any release granted by the Secretary shall be subject to the following conditions: 1)
the applicable airport, city or country shall agree in conveying interest in the property which U.S. conveyed to the airport and 2) the
city or county will receive an amount for such interest equal to fair
market value. Lastly, any amount received must be used exclusively for development, improvement, operation. or maintenance of
public airport.
Senate bill
Section 219 is a similar provision, but it specifies airports in
St. George, Utah, and Dona Ana County, New Mexico, for release
in order to facilitate the development of a replacement airport.
Conference Substitute
House bill modified.
AIR TRANSPORTATION OF LITHIUM CELLS AND BATTERIES

pwalker on DSK7TPTVN1PROD with REPORTS

H814/S—
House bill
Section 814 requires the Administrator to not issue or enforce
any regulation regarding the transportation by aircraft of lithium
metal cells or batteries or lithium ion cells or batteries, if the re-

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quirement is more stringent than the requirements of International
Civil Aviation Organization.
Senate bill
No similar provision.
Conference Substitute
House bill modified to require that, in almost all circumstances, regulations governing the air transportation of lithium
metal or lithium ion cells or batteries be consistent with the provisions of the International Civil Aviation Organization Technical Instructions for the Safe Transportation of Dangerous Goods by Air
(commonly known as the ICAO Technical Instructions), as in effect
at the time the regulations were adopted. The only exceptions to
this directive would be (a) to allow the retention of an existing U.S.
prohibition on transportation of lithium metal batteries and cells
on passenger aircraft, even if it is not embodied in the ICAO Technical Instructions, and (b) to allow adoption and enforcement of a
targeted rule more stringent than the ICAO Technical Instructions
in the event that an authoritative national or international governmental body provides a formal report finding that the presence of
lithium metal or lithium ion batteries on an aircraft in compliance
with the ICAO Technical Instructions was a substantial contributing factor to the initiation or promulgation of an onboard fire.
Where the conditions set forth in this section are met, the Secretary may issue a targeted emergency regulation that addresses
solely the deficiencies identified in the report that triggered the
regulation. That regulation may remain in effect for up to one year
and is not subject to renewal. Either alternatively or consecutively,
the Secretary may undertake a rulemaking in accordance with the
Administrative Procedure Act to adopt a permanent regulation.
That permanent regulation must be based on substantial credible
evidence that the cells or batteries of the type at issue could be expected to substantially contribute or propagate an on-board fire
even if they were shipped in accordance with applicable ICAO
Technical Regulations; be narrowly tailored to avoid disruption of
the shipping of other cells, batteries or products; and employ the
least expensive approach while addressing the identified safety
concern.
LIABILITY PROTECTION FOR VOLUNTEER PILOT NONPROFIT ORGANIZATIONS THAT FLY FOR PUBLIC BENEFIT AND TO PILOTS AND STAFF
OF SUCH NONPROFIT ORGANIZATION

pwalker on DSK7TPTVN1PROD with REPORTS

H816/S1211–1213
House bill
Section 816 amends the Volunteer Protection Act of 1997
(VPA) to include volunteer pilots and volunteer pilot organizations
within the scope of its protections. Under present law, nonprofit
volunteer pilot organizations and their pilots that provide life-saving medical flights without compensation are vulnerable to costly
and often frivolous litigation that undermines the ability of these
organizations to provide critical volunteer flight services in a timely
manner. In addition, institutions that refer patients to volunteer

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pilot organizations are presently subject to legal jeopardy. Section
816 protects and promotes the important work of volunteer pilot organizations by creating limited protection against liability to volunteer pilot organizations and pilots so that they are able to procure
necessary insurance and continue their important operations.
Senate bill
Sections 1211–1213 of the Senate bill contain a similar, but
more limited, volunteer pilot provision. The Senate provision only
includes volunteer pilots within the scope of its protections. Although the Senate provision does not provide protections to volunteer pilot organizations, it does protect and promote the important
work of volunteer pilots.
Conference Substitute
No provision.
AIRCRAFT SITUATIONAL DISPLAY TO INDUSTRY

H817/S—
House bill
Section 817 specifies that Congress finds that the Federal Government’s dissemination to the public of information relating to
noncommercial flight does not serve a public policy objective. Upon
request of private owner or operator the Federal Government
should not disseminate to the public information relating to noncommercial flights carried out by that owner or operator as the information should be private and confidential. The FAA shall block
the display of the owner or operator’s aircraft registration number
in aircraft situation display data upon the private owner or operator request, except when the FAA provides such data to a government agency.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
SENSE OF CONGRESS

H825/S—

pwalker on DSK7TPTVN1PROD with REPORTS

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

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Conference Substitute
House bill modified to include consultation with any organization which has at least 100 or more individuals.
HUMAN INTERVENTION MOTIVATION STUDY

H—/S702
House bill
No similar provision.
Senate bill
Section 702 within six months of enactment the FAA shall develop a Human Intervention Motivation Study program for cabin
crews employed by commercial air carriers in the United States.
Conference Substitute
Senate bill.
STUDY OF AERONAUTICAL MOBILE TELEMETRY

H—/S719
House bill
No similar provision.
Senate bill
Section 719 requires the Administrator to report to Congress
in 180 days on the aeronautical telemetry needs of civil aviation
over the next decade and the potential impact of the introduction
of a new radio service operating at the same spectrum as aeronautical mobile telemetry service.
Conference Substitute
Senate bill.
CLARIFICATION OF REQUIREMENTS FOR VOLUNTEER PILOTS
OPERATING CHARITABLE MEDICAL FLIGHTS

H—/S729
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 729 clarifies that an aircraft owner or aircraft operator
can accept reimbursement for all or part of the fuel costs associated
with operating a volunteer flight for medical purposes.
Conference Substitute
Senate bill modified by including original language, ‘‘not withstanding any other law or regulation’’ for the administering of section 61.113(c) of 14 C.F.R. Furthermore, language is added to allow
pilot to accept reimbursement from volunteer pilot organization for
fuel costs association with flight operation for medical purpose, and

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add ‘‘organ’’ as a transported item in subsection (a). Language is
added that in order for an owner or operator to be eligible for the
referenced reimbursement, the aircraft owner or operator must
have volunteered and notified any individual on the flight that the
flight operation is for charitable purposes and is not subject to the
same requirements as commercial flight. Lastly, language was
added that allows the Administrator to impose minimum standards
with respect to training and flight hours for single-engine, multiengine and turbine engine operations that is being reimbursed for
fuel costs in the above mentioned event, including the authority to
mandate that pilot in command of aircraft hold an instrument rating and be current and qualified for the aircraft being flown to ensure safety of flight operations.
PILOT PROGRAM FOR A REDEVELOPMENT OF AIRPORT PROPERTIES

H—/S712
House bill
No similar provision.
Senate bill
Section 702 directs the FAA to create a pilot program fostering
the collaboration between airports who have submitted a noise
compatibility program and the surrounding neighboring local jurisdictions to encourage airport-compatible land uses and generate
economic benefits to the local airport authority and adjacent community. The FAA would also have the authority to issue grants for
this program.
Conference Substitute
Senate bill.
REPORT ON NEW YORK CITY AND NEWARK AIR TRAFFIC CONTROL
FACILITIES

H—/S723
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 723 requires the Administrator within 90 days to report to Congress on FAA’s plan to staff Newark Liberty Airport’s
air traffic control tower at negotiated staffing levels within one
year.
Conference Substitute
Senate bill modified to direct FAA to submit a report to Congress on the FAA’s staffing and scheduling plans for air traffic control facilities in the New York and Newark Region for the one-year
period after the date of enactment.

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CYLINDERS OF COMPRESSED OXYGEN OR OTHER OXIDIZING GASES

H813/S730
House bill
Section 813 directs that the transportation within the State of
Alaska of cylinders of compressed oxygen or other oxidizing gases
aboard aircraft is exempt from compliance from regulations that require such gases to be enclosed in outer packaging capable of passing the flame penetration and resistance test and the thermal resistance test, without regard to the end use of the cylinders. The
exemption is to be applied in circumstances in which transportation of the cylinders by ground or vessel is unavailable and transportation by aircraft is the only practical means for transporting
the cylinders to their destination.
Senate bill
Section 730 is a similar provision, but provides an exemption
only for certain cylinders.
Conference Substitute
House bill modified to include new language that: 1) specifies
that each cylinder is fully covered with fire or flame resistant blanket; 2) requires that the operator complies with the applicable notification procedures under 49 C.F.R. 175.33.; and 3) specifies that
the exemption applies to cargo-only aircraft if the destination has
cargo-only service at least once a week and passenger and cargoonly aircraft if the destination does not receive cargo-only service
at least once a week.
ORPHAN EARMARKS ACT

H—/S738
House bill
No similar provision.
Senate bill
Section 738 requires all federal agencies to rescind amounts
designated as earmarks back to the Treasury if they are nine years
or older.
Conference Substitute
Senate bill modified.
PRIVACY PROTECTIONS FOR AIRCRAFT PASSENGER SCREENING WITH
ADVANCED IMAGING TECHNOLOGY

H—/S739

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
No similar provision.

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Senate bill
Section 739 directs the Transportation Security Administration
(TSA) Administrator to ensure that advanced imaging technology
used for the screening of passengers is equipped with automatic
target recognition software (which would produce a generic image
of the individual being screened) beginning on January 1, 2012.
Conference Substitute
Senate bill modified to include language allowing the TSA Administrator to extend the deadline that requires the TSA Administrator to ensure that Advanced Imaging Technology machines meet
requirements as specified in this section, if the resulting technology
would perform inadequately or additional testing is necessary. In
addition, the beginning date for implementation of automatic target
recognition software is changed from January 1, 2012 to June 1,
2012.
TERMINATION OF CERTAIN RESTRICTIONS FOR BURKE LAKEFRONT
AIRPORT

H820/S—
House bill
Section 820 states that any restriction in FAA Flight Data
Center Notice to Airmen, the Administrator may not prohibit or
impose airspace restrictions with respect to an air show or other
aerial event located at the Burke Lakefront Airport in Cleveland,
Ohio, due to a stadium event or event at other venues occurring
at the same time. The Administrator may prohibit aircraft from flying directly over applicable stadiums or venues.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
SANTA MONICA AIRPORT, CA

H821/S—
House bill
Section 821 specifies that Congress finds that the Administrator should enter into good faith discussions with city of Santa
Monica, California, to achieve a runway safety area solution consistent with FAA design guidelines.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
No similar provision.
Conference Substitute
Senate bill.

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

H822/S—
House bill
Section 822 directs the DOT IG to submit a report to Congress
on the number of new small business concerns owned and controlled by socially and economically disadvantaged individuals,
such as veterans, that participate in airport programs. The report
shall list the top 25 and bottom 25 large and medium hub airports
in terms of providing opportunities for such small businesses and
provide results of the assessments and recommendations to the
FAA and Congress on methods for other airports to achieve results
similar to those of the top airports.
Senate bill
No similar provision.
Conference Substitute
House bill.
ISSUING REGULATIONS

H826/S—
House bill
Section 826 requires that when proposing or issuing regulation
the Administrator shall analyze the different industry segments
and tailor any regulation to characteristics of each separate segment, taking into account that U.S. aviation industry is composed
of different segments. The Administrator shall analyze for each industry segment: alternative forms of regulation, assess the costs
and benefits, ensure proposed regulation is based on best reasonably obtainable scientific, technical and other information, and assess any adverse effects on efficient function of the economy, private markets together with quantification of such costs.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
WEIGHT RESTRICTIONS AT TETERBORO AIRPORT

H—/S711

pwalker on DSK7TPTVN1PROD with REPORTS

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

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Conference Substitute
House bill.
FLIGHT CREW MEMBER PAIRING AND CREW RESOURCE MANAGEMENT
TECHNIQUES

H—/S720
House bill
No similar provision.
Senate bill
Section 720 requires the Administrator to conduct a study and
issue a report on aviation industry best practices with regard to
flight crew member pairing, crew resource management techniques,
and pilot commuting.
Conference Substitute
House bill because the Senate provision is included in P.L.
111–216, the Airline Safety and Federal Aviation Administration
Extension Act of 2010.
ONGOING MONITORING OF AIRSPACE REDESIGN

H—/S726
House bill
No similar provision.
Senate bill
Section 726 directs the Administrator to work with the New
York and New Jersey Port Authority to monitor the noise impacts
of the redesign and submit reports to Congress on those impacts
within 270 days, and every 180 days thereafter until the New York,
New Jersey and Philadelphia airspace redesign is completed.
Conference Substitute
House bill.
LAND CONVEYANCE FOR SOUTHERN NEVADA

H—/S728

pwalker on DSK7TPTVN1PROD with REPORTS

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

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Conference Substitute
House bill.
TECHNICAL CORRECTION

H—/S731
House bill
No similar provision.
Senate bill
Section 731 amends the Consolidated Appropriations Act of
2010, to require inspections of rail containers containing firearms
or ammunition and permits the temporary suspension of firearm
carriage if credible intelligence information indicates that a threat
related to the national rail system, specific routes, or trains is identified.
Conference Substitute
House bill.
SCIENTIFIC INSTRUMENTS ON COMMERCIAL FLIGHTS

H—/S732
House bill
No similar provision.
Senate bill
Section 732 requires the Secretary of Transportation and the
Secretary of Commerce to develop a plan to allow federal agencies
to fly weather forecasting instruments on commercial flights within
270 days of enactment.
Conference Substitute
House bill.
CONTROLLING HELICOPTER NOISE IN RESIDENTIAL AREAS

H—/S740
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 740 directs the FAA to prescribe standards to measure
helicopter noise and regulations to control helicopter noise in residential areas. This section would mandate that within one year,
the FAA finalize regulations with respect to helicopters operating
over Long Island.
Conference Substitute
House bill.

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CRIMINAL PENALTY FOR UNAUTHORIZED RECORDING OR DISTRIBUTION
OF SECURITY SCREENING IMAGES

H—/S734
House bill
No similar provision.
Senate bill
Section 734 establishes criminal penalties for unauthorized recording or distribution of security screening images. Includes images from backscatter x-rays or millimeter waves and devices. It
provides an exception for certain law enforcement or intelligence
purposes.
Conference Substitute
House bill.
APPROVAL OF APPLICATIONS FOR THE SECURITY SCREENING OPT-OUT
PROGRAM

H—/S735
House bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 735 requires the Transportation Security Administration (TSA) Administrator to consider approving applications to participate in the Screening Partnership Program (SPP), which uses
private screeners instead of TSA employees, for all airports with
pending applications. This section requires the TSA Administrator
to reconsider rejected applications for the SPP for a limited number
of airports. If the TSA Administrator decides again to deny an application, they must report to Congress on the reason for the denial.
Conference Substitute
Senate bill modified to require the TSA Administrator to approve or deny, within 120 days, an application received by an airport to participate in the SPP. The Administrator is required to approve the application unless a determination is made that such approval would compromise security or have a detrimental effect on
the cost-efficiency or effectiveness of security screening at that airport. The Administrator must provide a more in-depth explanation
in a report to Congress if an SPP application is denied. This explanation must include: (1) the findings that served as a basis for the
denial; (2) results of any cost or security analysis conducted in the
reconsideration; and (3) recommendations on how the airport operator can address the reasons for the denial. This report has to be
issued with 60 days of the denial. Airport Operators who apply for
the SPP must also provide TSA a recommendation as to which
company would best serve the airport along with an explanation for
that choice. The modified provision also requires the reconsideration of SPP applications pending between January 1, 2011, and

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February 3, 2011, and outlines specific timelines to be followed in
issuing decisions regarding SPP reapplications. The provision includes modifications to existing requirements which provide the
Administrator with more flexibility in determining what companies
can bid for SPP contracts.
The conference committee believes that in determining the cost
efficiency and effectiveness of an applicant’s screening services, the
TSA Administrator shall compare the annual costs to the Federal
government and related effectiveness measures associated with
screening services at commercial airports using private-sector
screeners with comparable costs associated with screening services
by Federal screeners, applying the relevant cost and performance
metrics equally to the private and Federal screening programs.
CONVEYANCE OF LAND TO CITY OF MESQUITE, NEVADA

H—/S736
House bill
No similar provision.
Senate bill
Section 736 directs the Secretary of the Interior to convey to
the City of Mesquite, NV, without consideration, all right, title and
interests of the U.S. in a land parcel at Mesquite Airport.
Conference Substitute
House bill.
TITLE IX—NATIONAL MEDIATION BOARD
AUTHORITY OF THE DOT INSPECTOR GENERAL

H901/S—
House bill
Section 901 gives the DOT IG specific authority to conduct audits and evaluate the National Mediation Board’s (NMB) financial
management, property management, and business operations. In
carrying out this authority, the Inspector General of the Department of Transportation (DOT IG) is to keep the Chairman of the
Mediation Board and Congress fully and currently informed, issue
findings and recommendations and report periodically to Congress.
The Secretary of Transportation may only appropriate for use by
the DOT IG no more than $125,000 for each of FYs 2011 through
2014.
Senate bill
No similar provision.

pwalker on DSK7TPTVN1PROD with REPORTS

Conference Action
No provision.

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259
EVALUATION AND AUDIT OF THE NATIONAL MEDIATION BOARD

H902/S—
House bill
Section 902 directs the GAO to conduct audits and evaluate
the NMB’s programs, operations and activities, including: 1) information management and security; 2) resource management; 3)
workforce development; 4) procurement and contracting policies;
and 5) NMB processes for conducting investigations of representation applications, determining and certifying representation of employees, and ensuring that the process occurs without interference.
Senate bill
No similar provision.
Conference Action
House provision modified. The conference committee agreed to
the following modifications. The conference committee agreed to
amend the Railway Labor Act by requiring an evaluation and audit
of the Mediation Board by the Comptroller General. The Comptroller General of the U.S. shall evaluate and audit the programs
and expenditures of the Mediation Board at least every two years,
however it may be conducted as determined necessary by the
Comptroller or appropriate congressional committees. In conducting the evaluation and audit of the Mediation Board, the Conference Committee sets forth the minimum programs, operations
and activities of the Board that shall be included. No later than
180 days after the date of enactment, the Comptroller General
shall review the Mediation Board’s processes to certify and decertify representation of employees by a labor organization and make
recommendations to the Board and appropriate congressional committees regarding actions that may be taken by the Board to ensure the processes are fair and reasonable for all parties.
REPEAL OF RULE

H903/S—
House bill
Section 903 repeals the rule prescribed by the NMB on May
11, 2010, effective January 1, 2011. In May 2010, the NMB
changed standing rules for union elections at airlines and railroads,
which counted abstentions as votes ‘‘against’’ unionizing, to the current rule which counts only no votes as ‘‘against’’ unionizing, abstentions do not count either way.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
No similar provision.
Conference Action
This provision was not agreed to by the Conference, and is not
included in the final bill. The conference committee agreed to the
following provisions.

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Rule Making
The conference committee agreed to amend title I of the Railway Labor Act by inserting after section 10 that the Mediation
Board has authority from time to time to make, amend, and rescind, in the manner prescribed by section 553 of title 5, United
States Code and after opportunity for a public hearing, such rules
and regulations as may be necessary to carry out the provisions of
this Act.
Runoff Elections
The conference committee agreed to amend Paragraph Nine of
section 2 of the Railway Labor Act to require that in any runoff
election for which there are 3 or more options (including the option
of not being represented by any labor organization) on the ballot
and no such option receives a majority of the valid votes cast, the
Mediation Board shall arrange for a second election between the
options receiving the largest and the second largest number of
votes.
Showing of Interest
The conference committee agreed to amend section 2 of the
Railway Labor Act by raising the showing of interest threshold for
elections to not less than fifty percent of the employees in the craft
or class.
TITLE X—SCIENCE COMMITTEE, RESEARCH, ENGINEERING
AND DEVELOPMENT (R,E&D)
SHORT TITLE

H1001/S—
House bill
Section 1001 titles the section the ‘‘Federal Aviation Research
and Development Reauthorization Act of 2011’’.
Senate bill
No similar provision.
Conference Substitute
Senate bill.
AUTHORIZATION OF APPROPRIATIONS
($ IN MILLIONS)

pwalker on DSK7TPTVN1PROD with REPORTS

H1003(a)/S103
House bill
Section 1003(a) authorizes the Federal Aviation Administration’s Research, Engineering and Development (R,E&D) account at
$165.2 million in FY 2011, and $146.83 million in FY 2012, FY
2013, and FY 2014.

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Senate bill
Section 103 authorizes the Federal Aviation Administration’s
Research, Engineering and Development account at $200 million in
FY 2010 and $206 million in FY 2011.
Conference Substitute
House and Senate bills merged to provide $168 million for Federal Aviation Administration’s Research, Engineering and Development account in FYs 2012 through FY 2015.
DEFINITIONS

H1002/S—
House bill
Section 1001 defines the terms ‘‘Administrator’’, ‘‘FAA’’, ‘‘Institution of Higher Education’’, ‘‘NASA’’, ‘‘National Research Council’’,
‘‘NOAA’’, and ‘‘Secretary’’.
Senate bill
No similar provision.
Conference Substitute
House bill.
PROGRAMS AUTHORIZED

H1003(b), (c)/S103
House bill
Section 1003(b),(c) authorizes Research and Development activities listed in the National Aviation Research Plan.
Senate bill
Section 103 requires the FAA to establish a grant program to
promote aviation research at undergraduate and technical colleges
including schools serving Historically Black Colleges and Universities, Hispanic, Native Alaskan & Hawaiian populations.
Conference Substitute
House bill.
UNMANNED AIRCRAFT SYSTEMS

pwalker on DSK7TPTVN1PROD with REPORTS

H1004/S607(a)
House bill
Section 1004 requires the Administrator in conjunction with
other appropriate federal agencies to develop technologies and
methods to assess the risk and prevent defects, failures, and malfunctions of products, parts and processes for use in all classes of
Unmanned Aircraft Systems (UAS) that could result in catastrophic failure of UAS or endanger other aircraft in the NAS. The
Administrator is required to supervise research which will develop
better understanding of the relationship between human factors

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and UAS safety and develop simulation models for integration of
all UASs into the NAS without degrading safety for current users.
Senate bill
Section 607(a) permits the FAA to conduct developmental research on UASs. It authorizes the FAA, in conjunction with other
federal agencies as appropriate, to develop technologies and methods to assess the risk of and prevent defects, failures, and malfunctions of products, parts, and processes, for use in all classes of unmanned aircraft systems that could result in a catastrophic failure.
Conference Substitute
House bill.
RESEARCH PROGRAM ON RUNWAYS

H1005/S605
House bill
Section 1005 directs that when researching how to develop and
maintain a safe and efficient NAS, the Administrator will include
improved runway surfaces and engineered material restraining systems for runways at general aviation and commercial airports.
Senate bill
Section 605 allows the FAA to continue a program that authorizes awards to nonprofit research foundations to improve the construction and durability of pavement for runways.
Conference Substitute
House and Senate bills merged. The provision contains modified Senate language in subsection (a) that will allow the Administrator to maintain a program that will make awards to carry out
a research program under which the Administrator may make
grants to and enter into cooperative agreements with institutions
of higher education and nonprofit pavement research organization.
The conference agreement includes House language to cover research that relates to engineered material restraining systems for
runways at both general aviation and commercial airports. The
conference agreement also includes Senate language on use of
grants or cooperative agreements.
RESEARCH ON DESIGN FOR CERTIFICATION

pwalker on DSK7TPTVN1PROD with REPORTS

H1006/S—
House bill
Section 1006 requires the Administrator to conduct research on
methods and procedures to improve confidence in and the timeliness of certification of new technologies for introduction into the
NAS within one year. It specifies that not later than six months
after enactment, the FAA will develop a plan for the research that
contains objectives, proposed tasks, milestones and a five year
budget profile. The Administrator will enter into an arrangement
with the National Research Council to conduct an independent re-

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view of the plan not later than 18 months after the date of enactment, with results of the review provided to Congress.
Senate bill
No similar provision.
Conference Substitute
House bill.
AIRPORT COOPERATIVE RESEARCH PROGRAM

H1007/S601
House bill
Section 1007 makes the Airport Cooperative Research Program
permanent and requires a report on the program no later than September 30, 2012.
Senate bill
Section 601 is a similar provision, but it specifies that a maximum of $15 million of aviation research grant funds may go to the
Airport Cooperative Research Program. It directs that at least $5
million of the Airport Cooperative Research Program funds must go
to environmental research.
Conference Substitute
House bill.
CENTERS OF EXCELLENCE

H1008/S608
House bill
Section 1008 changes the current Government share of costs
for the Centers of Excellence so that the government’s share of cost
will not exceed 50 percent, with the exception that the Administrator may increase the share to a maximum of 75 percent for a
fiscal year if the Administrator determines a center would be unable to carry out authorized activities without additional funds. An
annual report is required listing the research projects initiated at
each Center of Excellence, the amount of funding and funding
source for each project, institutions participating, their shares of
funding, and level of cost-sharing for the project.

pwalker on DSK7TPTVN1PROD with REPORTS

Senate bill
Section 608 authorizes $1 million per year for each of fiscal
years 2008 through 2012 for a Center of Excellence in applied research and training in the use of advanced materials in transport
category aircraft.
Conference Substitute
House bill.

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CENTER OF EXCELLENCE FOR AVIATION HUMAN RESOURCE RESEARCH

H1009/S—
House bill
Section 1009 permits the Administrator to establish a Center
of Excellence to conduct research on human performance in the air
transportation environment, and any other aviation human resource issues pertinent to developing and maintaining a safe and
efficient air transportation system. Activities conducted under this
section may include research and development and evaluation of
training programs, best practices for recruitment, development of a
baseline of general aviation employment statistics, research and
development of the airframe and power plant technician certification process, evaluation of aviation maintenance technician
school environment, and transitioning mechanics into the aviation
field.
Senate bill
No similar provision.
Conference Substitute
House bill.
INTERAGENCY RESEARCH ON AVIATION AND THE ENVIRONMENT

H1010/S—
House bill
Section 1010 directs that the Administrator, in coordination
with National Air and Space Administration (NASA), may maintain a research program to assess the potential effect of aviation
on the environment. The research plan will be developed by the Administrator with NASA and other relevant agencies, and will contain an inventory of current interagency research, future research
objectives, proposed tasks, milestones and a five year budgetary
profile. The plan shall be completed within one year, and shall be
updated as appropriate every three years after initial submission.
Senate bill
No similar provision.
Conference Substitute
House bill.
AVIATION FUEL RESEARCH AND DEVELOPMENT PROGRAM

pwalker on DSK7TPTVN1PROD with REPORTS

H1011/S—
House bill
Section 1011 specifies that, using Research, Engineering and
Development (R,E&D) funds, the Administrator, in coordination
with NASA Administrator, will continue R,E&D activities into the
qualification of unleaded aviation fuel and safe transition to this
fuel for the fleet of piston engine aircraft. It directs that the Ad-

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ministrator, not later than 270 days after enactment, will provide
Congress with a report on a plan, policies, and guidelines on how
this will be accomplished.
Senate bill
No similar provision.
Conference Substitute
House bill.
RESEARCH PROGRAM ON ALTERNATIVE JET FUEL TECHNOLOGY FOR
CIVIL AIRCRAFT

H1012/S603
House bill
Section 1012 directs the Secretary of Transportation to conduct
a research program related to developing and qualifying jet fuel
from alternative sources through grants and other measures. The
program will allow for participation of industry and educational
and research institutions that have existing facilities and experience in the research and development of technology for alternative
jet fuels. The Secretary may collaborate with existing interagency
programs, including the Commercial Aviation Alternative Fuels
Initiative (CAAFI).
Senate bill
Section 603 requires the DOT to establish a research program
to develop jet fuel from natural gas, biomass, and other renewable
sources. It directs that the FAA, within 180 days, designate a Center of Excellence for Alternative Jet-Fuel Research for Civil Aircraft.
Conference Substitute
Senate bill modified to add language permitting facilities to
participate in the program that ‘‘leverage private sector partnerships and consortia with experience across the supply chain’’ and
changing ‘‘shall’’ to ‘‘may’’ in directing the Administrator to designate an institution to carry out this section.
REVIEW OF FAA’S ENERGY- AND ENVIRONMENT-RELATED RESEARCH
PROGRAMS

H1013/S—

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
Section 1013 directs the Administrator to review FAA energyrelated and environment-related research programs. It initiates a
report to be submitted on the agency’s review to Congress no later
than 18 months after enactment.
Senate bill
No similar provision.

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Conference Substitute
House bill modified to direct the FAA to ‘‘enter into an arrangement for an independent external review’’ to conduct the review, rather than the Administrator.
REVIEW OF FAA’S AVIATION SAFETY-RELATED RESEARCH PROGRAMS

H1014/S—
House bill
Section 1014 directs the Administrator to review FAA’s aviation safety-related research programs. It initiates a report to be
submitted on the agency’s review to Congress no later than 14
months after enactment.
Senate bill
No similar provision.
Conference Substitute
House bill modified to direct the FAA to ‘‘enter into an arrangement for an independent external review’’ to conduct the review, rather than the Administrator.
RESEARCH GRANTS FOR UNDERGRADUATES

H—/S103
House bill
No similar provision.
Senate bill
Section 103 authorizes $5 million for research grants program
for undergraduate colleges, including those that are Historically
Black Colleges and Universities, Hispanic Serving Institutions,
tribally controlled institutions and Alaska Native and Native Hawaiian institutions.
Conference Substitute
House bill.
PRODUCTION OF CLEAN COAL FUEL TECHNOLOGY FOR CIVILIAN
AIRCRAFT

H—/S604

pwalker on DSK7TPTVN1PROD with REPORTS

House bill
No similar provision.
Senate bill
Section 604 requires the Secretary of Transportation to establish a Center of Excellence for a research program related to developing jet fuel from clean coal through grants or other measures,
with a requirement to include educational and research institutions
in the initiative.

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Conference Substitute
Senate bill modified by changing ‘‘shall’’ to ‘‘may’’ in directing
the Administrator to establish a Center of Excellence to carry out
this section.
WAKE TURBULENCE, VOLCANIC ASH, AND WEATHER RESEARCH

H—/S606
House bill
No similar provision.
Senate bill
Section 606 directs the Administrator to initiate an evaluation
of proposals that would: increase capacity throughout the NAS by
reducing spacing requirements between aircraft through research
of wake turbulence; begin implementation of a system to avoid volcanic ash; and establish weather research projects, including on
ground de-icing.
Conference Substitute
Senate bill modified to include research on the nature of wake
vortexes and to direct the Administrator to coordinate with National Oceanic and Atmospheric Administration (NOAA), National
Air and Space Administration (NASA), and other appropriate federal agencies to conduct research.
REAUTHORIZATION OF CENTER OF EXCELLENCE IN APPLIED RESEARCH
AND TRAINING IN THE USE OF ADVANCED MATERIALS IN TRANSPORT
AIRCRAFT

H—/S608
House bill
No similar provision.
Senate bill
Section 608 authorizes $1 million per year for FYs 2008
through 2012 for a Center of Excellence in applied research and
training in the use of advanced materials in transport category aircraft.
Conference Substitute
Senate bill with modification removing authorization amounts.
RESEARCH AND DEVELOPMENT OF EQUIPMENT TO CLEAN AND MONITOR THE ENGINE AND APU BLEED AIR SUPPLIED ON PRESSURIZED
AIRCRAFT

pwalker on DSK7TPTVN1PROD with REPORTS

H—/S612
House bill
No similar provision.

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Senate bill
Section 612 requires the FAA to conduct a research program
for the identification or development of effective air cleaning technology and sensors technology for the engine and auxiliary power
unit bleed air supplied to passenger cabins and flight decks of all
pressurized aircraft. It would require the FAA submit a report to
Congress within one year.
Conference Substitute
Senate bill.
EXPERT REVIEW OF ENTERPRISE ARCHITECTURE FOR NEXTGEN

H212/S314
House bill
Section 212 directs the Administrator to enter into an arrangement with the National Research Council to review the enterprise
architecture for NextGen. Also, the Administrator must report to
Congress within one year on the results of this review.

pwalker on DSK7TPTVN1PROD with REPORTS

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

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AIRPORT SUSTAINABILITY PLANNING WORKING GROUP

H—/S221
House bill
No similar provision.
Senate bill
Section 221 establishes an airport sustainability working group
within the FAA that would submit a report on their findings to the
Administrator within one year of enactment. The working group
would be comprised of 15 members including the Administrator
and industry representatives.
Conference Substitute
Senate bill with minor modifications.
TITLE XI.—AIRPORT AND AIRWAY TRUST FUND
PROVISIONS AND RELATED TAXES
A. Extension of Taxes Funding the Airport and Airway Trust Fund
(sec. 1103 of the House bill, sec. 801 of the Senate amendment,
sec. 1101 of the conference agreement, and secs. 4261, 4271, and
4081 of the Code)
PRESENT LAW

Overview
Excise taxes are imposed on amounts paid for commercial air
passenger and freight transportation and on fuels used in commercial aviation and noncommercial aviation (i.e., transportation that
is not ‘‘for hire’’) to fund the Airport and Airway Trust Fund. The
present aviation excise taxes are as follows:
Tax (and Code section)

Tax Rates

Domestic air passengers (sec. 4261) ......................................

7.5 percent of fare, plus $3.80 (2012) per domestic flight
segment generally 1
$16.70 (2012) per arrival or departure 2
7.5 percent of amount paid

International travel facilities tax (sec. 4261) ..........................
Amounts paid for right to award free or reduced rate passenger air transportation (sec. 4261).
Air cargo (freight) transportation (sec. 4271) .........................

6.25 percent of amount charged for domestic transportation;
no tax on international cargo transportation

4081): 3

Aviation fuels (sec.
1. Commercial aviation ............................................................
2. Non-commercial (general) aviation:
Aviation gasoline .............................................................
Jet fuel .............................................................................

4.3 cents per gallon
19.3 cents per gallon
21.8 cents per gallon

pwalker on DSK7TPTVN1PROD with REPORTS

All Airport and Airway Trust Fund excise taxes, except for 4.3
cents per gallon of the taxes on aviation fuels, are scheduled to expire after February 17, 2012. The 4.3-cents-per-gallon fuels tax rate
is permanent.
1 The domestic flight segment portion of the tax is adjusted annually (effective each January
1) for inflation (adjustments based on the changes in the consumer price index (the ‘‘CPI’’)).
2 The international travel facilities tax rate is adjusted annually for inflation (measured by
changes in the CPI).
3 Like most other taxable motor fuels, aviation fuels are subject to an additional 0.1-cent-pergallon excise tax to fund the Leaking Underground Storage Tank Trust Fund.

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Taxes on transportation of persons by air
Domestic air passenger excise tax
Domestic air passenger transportation generally is subject to a
two-part excise tax. The first component is an ad valorem tax imposed at the rate of 7.5 percent of the amount paid for the transportation. The second component is a flight segment tax. For 2012,
the flight segment tax rate is $3.80.4 A flight segment is defined
as transportation involving a single take-off and a single landing.
For example, travel from New York to San Francisco, with an intermediate stop in Chicago, consists of two flight segments (without
regard to whether the passenger changes aircraft in Chicago).
The flight segment component of the tax does not apply to segments to or from qualified ‘‘rural airports.’’ For any calendar year,
a rural airport is defined as an airport that in the second preceding
calendar year had fewer than 100,000 commercial passenger departures, and meets one of the following three additional requirements: (1) the airport is not located within 75 miles of another airport that had more than 100,000 such departures in that year; (2)
the airport is receiving payments under the Federal ‘‘essential air
service’’ program; or (3) the airport is not connected by paved roads
to another airport.5
The domestic air passenger excise tax applies to ‘‘taxable
transportation.’’ Taxable transportation means transportation by
air that begins in the United States or in the portion of Canada
or Mexico that is not more than 225 miles from the nearest point
in the continental United States and ends in the United States or
in such 225-mile zone. If the domestic transportation is paid for
outside of the United States, it is taxable only if it begins and ends
in the United States.
For purposes of the domestic air passenger excise tax, taxable
transportation does not include ‘‘uninterrupted international air
transportation.’’ Uninterrupted international air transportation is
any transportation that does not both begin and end in the United
States or within the 225-mile zone and does not have a layover
time of more than 12 hours. The tax on international air passenger
transportation is discussed below.

pwalker on DSK7TPTVN1PROD with REPORTS

International travel facilities tax
For 2012, international air passenger transportation is subject
to a tax of $16.70 per arrival or departure in lieu of the taxes imposed on domestic air passenger transportation if the transportation begins or ends in the United States.6 The definition of international transportation includes certain purely domestic transportation that is associated with an international journey. Under these
rules, a passenger traveling on separate domestic segments inte4 Sec. 4261(b)(1) and 4261(d)(4). Unless otherwise stated, all section references are to the Internal Revenue Code of 1986, as amended (the ‘‘Code’’). The Code provides for a $3 tax indexed
annually for inflation, effective each January 1, resulting in the current rate of $3.80.
5 In the case of an airport qualifying as ‘‘rural’’ because it is not connected by paved roads
to another airport, only departures for flight segments of 100 miles or more are considered in
calculating whether the airport has fewer than 100,000 commercial passenger departures. The
Department of Transportation has published a list of airports that meet the definition of rural
airports. See Rev. Proc. 2005–45.
6 Secs. 4261(c) and 4261(d)(4). The international air facilities tax rate of $12 is indexed annually for inflation, effective each January 1, resulting in the current rate of $16.70.

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gral to international travel is exempt from the domestic passenger
taxes on those segments if the stopover time at any point within
the United States does not exceed 12 hours.
In the case of a domestic segment beginning or ending in Alaska or Hawaii, the tax applies to departures only and is $8.40 for
calendar year 2012.
‘‘Free’’ travel
Both the domestic air passenger tax and the use of international air facilities tax apply only to transportation for which an
amount is paid. Thus, free travel, such as that awarded in ‘‘frequent flyer’’ programs and nonrevenue travel by airline industry
employees, is not subject to tax. However, amounts paid to air carriers (in cash or in kind) for the right to award free or reduced-fare
transportation are treated as amounts paid for taxable air transportation and are subject to the 7.5 percent ad valorem tax (but not
the flight segment tax or the use of international air facilities tax).
Examples of such payments are purchases of miles by credit card
companies and affiliates (including airline affiliates) for use as ‘‘rewards’’ to cardholders.
Disclosure of air passenger transportation taxes on tickets
and in advertising
Transportation providers are subject to special penalties relating to the disclosure of the amount of the passenger taxes on tickets and in advertising. The ticket is required to show the total
amount paid for such transportation and the tax. The same requirements apply to advertisements. In addition, if the advertising
separately states the amount to be paid for the transportation or
the amount of taxes, the total shall be stated at least as prominently as the more prominently stated of the tax or the amount
paid for transportation. Failure to satisfy these disclosure requirements is a misdemeanor, upon conviction of which the guilty party
is fined not more than $100 per violation.7
Tax on transportation of property (cargo) by air
Amounts equivalent to the taxes received from the transportation of property by air are transferred to the Airport and Airway
Trust Fund. Domestic air cargo transportation is subject to a 6.25
percent ad valorem excise tax on the amount paid for the transportation.8 The tax applies only to transportation that both begins and
ends in the United States. There is no disclosure requirement for
the air cargo tax.

pwalker on DSK7TPTVN1PROD with REPORTS

Aviation fuel taxes
The Code imposes excise taxes on gasoline used in commercial
aviation (4.3 cents per gallon) and noncommercial aviation (19.3
cents per gallon), and on jet fuel (kerosene) and other aviation fuels
used in commercial aviation (4.3 cents per gallon) and noncommer7 Sec.
8 Sec.

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cial aviation (21.8 cents per gallon).9 Amounts equivalent to these
taxes are transferred to the Airport and Airway Trust Fund.
HOUSE BILL

The provision extends the present-law Airport and Airway
Trust Fund excise taxes through September 30, 2014.
Effective date.—The provision takes effect on the date of enactment.
SENATE AMENDMENT

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

The conference agreement extends the present-law Airport and
Airway Trust Fund excise taxes through September 30, 2015.
Effective date.—The provision takes effect on February 18,
2012.
B. Extension of Airport and Airway Trust Fund Expenditure Authority (sec. 1102 of the House bill, sec. 802 of the Senate amendment, sec. 1102 of the conference agreement, and sec. 9502 of the
Code)
PRESENT LAW

pwalker on DSK7TPTVN1PROD with REPORTS

In general
The Airport and Airway Trust Fund was created in 1970 to finance a major portion of Federal expenditures on national aviation
programs. Operation of the Airport and Airway Trust Fund is governed by the Internal Revenue Code (the ‘‘Code’’) 10 and authorizing
statutes. The Code provisions govern deposit of revenues into the
trust fund and approve the use of trust fund money (as provided
by appropriation acts) for expenditure purposes in authorizing statutes as in effect on the date of enactment of the latest authorizing
Act. The authorizing acts provide specific trust fund expenditure
programs and purposes.
Authorized expenditures from the Airport and Airway Trust
Fund include the following principal programs:
1. Airport Improvement Program (airport planning, construction, noise compatibility programs, and safety projects);
2. Facilities and Equipment program (costs of acquiring,
establishing, and improving the air traffic control facilities);
3. Research, Engineering, and Development program (Federal Aviation Administration (‘‘FAA’’) research and development activities);
4. FAA Operations and Maintenance (‘‘O&M’’) programs;
and
9 These fuels are also subject to an additional 0.1 cent per gallon for the Leaking Underground
Storage Tank Trust Fund. If there was not a taxable sale of the fuel pursuant to section 4081
of the Code, a backup tax exists under section 4041(c) for such fuel that is subsequently sold
or used in aviation.
10 Unless otherwise stated, all section references are to the Internal Revenue Code of 1986,
as amended.

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5. Certain other aviation-related programs specified in authorizing acts.
Part of the O&M programs is financed from General Fund
monies as well.11
Limits on Airport and Airway Trust Fund expenditures
No expenditures are currently permitted to be made from the
Airport and Airway Trust Fund after February 17, 2012. Because
the purposes for which Airport and Airway Trust Fund monies are
permitted to be expended are fixed as of the date of enactment of
the Airport and Airway Extension Act of 2012, the Code must be
amended to authorize new Airport and Airway Trust Fund expenditure purposes. In addition, the Code contains a specific enforcement provision to prevent expenditure of Airport and Airway Trust
Fund monies for purposes not authorized under section 9502.
Should such unapproved expenditures occur, no further aviation
excise tax receipts will be transferred to the Airport and Airway
Trust Fund. Rather, the aviation taxes would continue to be imposed, but the receipts would be retained in the General Fund.
HOUSE BILL

The provision authorizes expenditures from the Airport and
Airway Trust Fund through September 30, 2014, and revises the
purposes for which money from the Airport and Airway Trust Fund
funds are permitted to be expended to include those obligations authorized under the reauthorization legislation of 2011 (i.e., the
‘‘FAA Reauthorization and Reform Act of 2011,’’ which sets forth
aviation program expenditure purposes through September 30,
2014).
Effective date.—The provision takes effect on date of enactment.
SENATE AMENDMENT

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

pwalker on DSK7TPTVN1PROD with REPORTS

The conference agreement authorizes expenditures from the
Airport and Airway Trust Fund through September 30, 2015. The
provision also amends the list of authorizing statutes to include the
‘‘FAA Modernization and Reform Act of 2012,’’ which sets forth
11 According to the Government Accountability Office, for FY 2000 through FY 2010 the contribution of general revenues has increased to cover a larger share of the FAA’s operation expenditures. United States Government Accountability Office, Airport and Airway Trust Fund:
Declining Balance Raises Concerns Over Ability to Meet Future Demands, Statement of Gerald
Dillingham, Director Physical Infrastructure Before the Committee on Finance, U.S. Senate
(GAO–11–358T), February 3, 2011, p. 5, Fig. 2. Congressional Budget Office, Financing Federal
Aviation Programs: Statement of Robert A. Sunshine before the House Committee on Ways and
Means, May 7, 2009, p. 3.

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aviation program expenditure purposes through September 30,
2015.
Effective date.—The provision takes effect on February 18,
2012.
C. Modification of Excise Tax on Kerosene Used in Aviation (sec.
803 of the Senate amendment)
PRESENT LAW

In general
Under section 4081, an excise tax is imposed upon (1) the removal of any taxable fuel from a refinery or terminal,12 (2) the
entry of any taxable fuel into the United States, or (3) the sale of
any taxable fuel to any person who is not registered with the Internal Revenue Service (‘‘IRS’’) to receive untaxed fuel, unless there
was a prior taxable removal or entry.13 The tax does not apply to
any removal or entry of taxable fuel transferred in bulk by pipeline
or vessel to a terminal or refinery if the person removing or entering the taxable fuel, the operator of such pipeline or vessel (excluding deep draft vessels), and the operator of such terminal or refinery are registered with the Secretary.14 If the bulk transfer exception applies, tax is not imposed until the fuel ‘‘breaks bulk,’’ i.e.,
when it is removed from the terminal, typically by rail car or truck,
for delivery to a smaller wholesale facility or retail outlet, or removed directly from the terminal into the fuel tank of an aircraft.15
The term ‘‘taxable fuel’’ means gasoline, diesel fuel (including
any liquid, other than gasoline, that is suitable for use as a fuel
in a diesel-powered highway vehicle or train), and kerosene.16 The
term includes kerosene used in aviation (jet fuel) as well as aviation gasoline.
Section 4041(c) provides a back-up tax for liquids (other than
aviation gasoline) that are sold for use as a fuel in aircraft and that
have not been previously taxed under section 4081.
Kerosene for use in aviation

pwalker on DSK7TPTVN1PROD with REPORTS

In general
Present law generally imposes a total tax of 24.4 cents per gallon on kerosene. However, reduced rates apply for kerosene removed directly from a terminal into the fuel tank of an aircraft.17
12 A ‘‘terminal’’ is a taxable fuel storage and distribution facility that is supplied by pipeline
or vessel and from which taxable fuel may be removed at a rack. A ‘‘rack’’ is a mechanism capable of delivering taxable fuel into a means of transport other than a pipeline or vessel. A terminal can be located at an airport, or fuel may be delivered to the airport from a terminal located off the airport grounds.
13 Sec. 4081(a)(1).
14 Sec. 4081(a)(1)(B).
15 In general, the party liable for payment of the taxes when the fuel breaks bulk at the terminal is the ‘‘position holder,’’ the person shown on the records of the terminal facility as holding the inventory position in the fuel. However, when fuel is removed directly into the fuel tank
of an aircraft for use in commercial aviation, the person who uses the fuel is liable for the tax.
The fuel is treated as used when such fuel is removed into the fuel tank. Sec. 4081(a)(4).
16 Sec. 4083(a).
17 If certain conditions are met, present law permits the removal of kerosene from a refueler
truck, tanker, or tank wagon to be treated as a removal from a terminal for purposes of determining whether kerosene is removed directly into the fuel tank of an aircraft. A refueler truck,
tanker, or tank wagon is treated as part of a terminal if: (1) the terminal is located within an
airport; (2) any kerosene which is loaded in such truck, tanker, or tank wagon at such terminal
is for delivery only into aircraft at the airport in which such terminal is located; and (3) no vehi-

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For kerosene removed directly from a terminal into the fuel tank
of an aircraft for use in commercial aviation, the tax rate is 4.4
cents per gallon.18 For kerosene removed directly from a terminal
into the fuel tank of an aircraft for use in noncommercial aviation,
the tax rate is 21.9 cents per gallon. All of these tax rates include
0.1 cent per gallon for the Leaking Underground Storage Tank
Trust Fund. For kerosene removed directly from a terminal into
the fuel tank of an aircraft for an exempt use (such as for the exclusive use of a State or local government), generally only the
Leaking Underground Storage Tank Trust Fund tax of 0.1 cent per
gallon applies.
‘‘Commercial aviation’’ generally means any use of an aircraft
in the business of transporting by air persons or property for compensation or hire.19 Commercial aviation does not include transportation exempt from the ticket taxes and air cargo taxes by reason
of sections 4281 or 4282 or by reason of section 4261(h) or 4261(i).
Thus, small aircraft operating on nonestablished lines (sec. 4281),
air transportation for affiliated group members (sec. 4282), air
transportation for skydiving (sec. 4261(h)), and certain air transportation by seaplane (sec. 4261(i)) are excluded from the definition
of commercial aviation, and accordingly are subject to the tax regime applicable to noncommercial aviation.

pwalker on DSK7TPTVN1PROD with REPORTS

Refunds and credits to obtain the appropriate aviation tax
rate
If the kerosene is not removed directly into the fuel tank of an
aircraft, the fuel is taxed at 24.4 cents per gallon, the rate applied
to diesel fuel and kerosene used in highway vehicles. A claim for
credit or payment may be made for the difference between the tax
paid and the appropriate aviation rate (21.9 cents per gallon for
noncommercial aviation, 4.4 cents per gallon for commercial aviation, and 0.1 cent per gallon for an exempt use).20
For noncommercial aviation, other than for exempt use, only
the registered ultimate vendor may make the claim for the 2.5cent-per-gallon difference between the 24.4 cents per gallon rate
and the noncommercial aviation rate of 21.9 cents per gallon.21 For
commercial aviation and exempt use (other than State and local
government use), the ultimate purchaser may make a claim for the
difference in tax rates, or the ultimate purchaser may waive the
right to make the claim for payment to the ultimate vendor.22 For
cle licensed for highway use is loaded with kerosene at such terminal, except in exigent circumstances identified by the Secretary in regulations. To qualify for the special rule, a refueler
truck, tanker, or tank wagon must: (1) have storage tanks, hose, and coupling equipment designed and used for the purposes of fueling aircraft; (2) not be registered for highway use; and
(3) be operated by the terminal operator (who operates the terminal rack from which the fuel
is unloaded) or by a person that makes a daily accounting to such terminal operator of each
delivery of fuel from such truck, tanker, or tank wagon. Sec. 4081(a)(3).
18 Tax is imposed at this rate if the commercial aircraft operator is registered with the IRS,
and the fuel terminal is located within a secured area of an airport. The IRS has identified airports with secured areas in which a terminal is located. See Notice 2005–4, 2005–1 C.B. 289,
at sec. 4(d)(2)(ii) (2005) and Notice 2005–80, 2005–2 C.B. 953, at sec. 3(c)(2) (2005). If the fuel
terminal is located at an unsecured airport, the fuel is taxed at 21.9 cents per gallon if the fuel
is removed directly from the terminal into the fuel tank of an aircraft.
19 Sec. 4083(b).
20 Sec. 6427(l)(4).
21 Sec. 6427(l)(4)(C)(ii).
22 Sec. 6427(l)(4)(C)(i).

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State and local government use, the registered ultimate vendor is
the proper claimant.23
Commercial aviation claimants are permitted to credit their
fuel tax claims against their other excise tax liabilities, thereby reducing the amount of excise tax to be paid with the excise tax return.
Transfers between the Highway Trust Fund and the Airport
and Airway Trust Fund to account for aviation use
Kerosene that is not removed directly from the terminal into
an airplane (e.g., the jet fuel is transferred from the terminal by
highway vehicle to the airport) is taxed at the highway fuel rate
of 24.4 cents per gallon. The Highway Trust Fund is credited with
24.3 cents per gallon of the 24.4 cents per gallon imposed. The remaining 0.1 cent is credited to the Leaking Underground Storage
Tank Trust Fund. If a claim for payment is later made indicating
that the fuel was used in aviation, the Secretary then transfers to
the Airport and Airway Trust Fund 4.3 cents per gallon for commercial aviation use and 21.8 cents per gallon for noncommercial
aviation use. These transfers initially are based on estimates, and
proper adjustments are made in amounts subsequently transferred
to the extent prior estimates were in excess of, or less than, the
amounts required to be transferred. Thus, to the extent claims for
credit or payment are not made for the difference between the
highway rate and the aviation rate, the Airport and Airway Trust
Fund will not be credited for fuel used in aviation that was taxed
at the 24.4 cents per gallon rate.
Aviation gasoline
The tax on aviation gasoline is 19.4 cents per gallon (including
a 0.1 cent per gallon Leaking Underground Storage Tank Trust
Fund component). If aviation gasoline is used in commercial aviation, the ultimate purchaser may obtain a credit or payment in the
amount of 15 cents per gallon, such that the tax rate on such gasoline is 4.4 cents per gallon.24 If aviation gasoline is sold for an exempt use, a credit or refund is allowable for all but the Leaking
Underground Storage Tank Trust Fund tax (0.1 cent per gallon).25
HOUSE BILL

No provision.
SENATE AMENDMENT

pwalker on DSK7TPTVN1PROD with REPORTS

The provision creates a separate category of kerosene for tax
purposes: aviation-grade kerosene.26 Aviation-grade kerosene is
taxed at 35.9 cents per gallon plus 0.1 cent per gallon for the Leaking Underground Storage Tank Trust Fund. Under the provision,
aviation-grade kerosene used in noncommercial aviation will be
23 See sec. 6427(l)(5). Special rules apply if the kerosene is purchased with a credit card issued
to a State or local government.
24 Sec. 6421(f)(2).
25 Sec. 6416(a); sec. 6420 (farming purposes); sec. 6421(c); and sec. 6430.
26 Aviation-grade kerosene means, as defined by the IRS, kerosene-type jet fuel covered by
ASTM specification D1655, or military specification MIL–DTL–5624 (Grade JP–5), or MIL–
DTL–83133E (Grade JP–8). See section 4(b) of Notice 2005–4.

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277
taxed at the full rate. The rate of tax for aviation-grade kerosene
used in commercial aviation and exempt use remains unchanged.27
Because the tax on aviation-grade kerosene used in noncommercial aviation is equal to the full rate of tax collected, the
provision repeals the ultimate vendor refund provisions for noncommercial aviation. In addition, the provision eliminates the
inter-fund transfers from the Highway Trust Fund to the Airport
and Airway Trust Fund for kerosene used in aviation. Instead, the
taxes imposed on aviation-grade kerosene will be credited to the
Airport and Airway Trust Fund only.28 The provision also provides
a refund mechanism for aviation-grade kerosene used for a taxable
purpose other than in an aircraft.
In the case of aviation-grade kerosene held on April 1, 2011,
by any person, a floor stocks tax is imposed equal to the tax that
would have been imposed if the increased rates had been in effect
before such date less the tax actually imposed on such fuel. The tax
is to be paid at such time and in such manner as the Secretary
shall prescribe.
The floor stocks tax does not apply to fuel held exclusively for
any use to the extent a refund or credit of tax is allowable under
the Code. The floor stocks tax does not apply if the amount of fuel
held by a person does not exceed 2,000 gallons.
For purposes of the floor stocks tax, a controlled group is treated as one person. ‘‘Controlled group’’ for these purposes means a
parent-subsidiary, brother-sister, or combined corporate group with
more than 50-percent ownership with respect to either combined
voting power or total value. Under regulations, similar principles
may apply to a group of persons under common control where one
or more persons are not a corporation.
All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 also apply to the floor
stocks taxes to the extent not inconsistent with the provisions of
the provision. For purposes of determining receipts to the Airport
and Airway Trust Fund, the floor stocks tax is treated as if it were
a tax listed in section 9502(b)(1) (governing transfers of tax receipts
to the Airport and Airway Trust Fund).
Effective date.—The provision is generally effective for fuel removed, entered, or sold after March 31, 2011. The floor stocks tax
is effective April 1, 2011.
CONFERENCE AGREEMENT

pwalker on DSK7TPTVN1PROD with REPORTS

The conference agreement does not include the Senate amendment provision.

27 Accordingly, commercial aviation use will continue to be subject to a tax of 4.4 cents per
gallon and exempt use will be subject to 0.1 cent per gallon.
28 The 0.1 cent per gallon will continue to be transferred to the Leaking Underground Storage
Tank Trust Fund.

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278
D. Air Traffic Control System Modernization Account (sec. 804 of
the Senate amendment)
PRESENT LAW

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

No provision.
SENATE AMENDMENT

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

The conference agreement does not include the Senate amendment provision.
E. Treatment of Fractional Ownership Aircraft Program Flights
(sec. 805 of the Senate amendment, sec. 1103 of the conference
agreement, and new sec. 4043 of the Code)
PRESENT LAW

pwalker on DSK7TPTVN1PROD with REPORTS

For excise tax purposes, fractional ownership aircraft flights
are treated as commercial aviation. As commercial aviation, for
2012, such flights are subject to the ad valorem tax of 7.5 percent
of the amount paid for the transportation, a $3.80 segment tax, and
tax of 4.4 cents per gallon on fuel. For international flights, fractional ownership flights pay the $16.70 international travel facilities tax.
For purposes of the FAA safety regulations, fractional ownership aircraft programs are treated as a special category of general
aviation.29 Under those FAA regulations, a ‘‘fractional ownership
program’’ is defined as any system of aircraft ownership and exchange that consists of all of the following elements: (i) the provision for fractional ownership program management services by a
single fractional ownership program manager on behalf of the fractional owners; (ii) two or more airworthy aircraft; (iii) one or more
fractional owners per program aircraft, with at least one program
aircraft having more than one owner; (iv) possession of at least a
29 14

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CFR Part 91, subpart k.

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279
minimum fractional ownership interest in one or more program aircraft by each fractional owner; (v) a dry-lease aircraft exchange arrangement among all of the fractional owners; and (vi) multi-year
program agreements covering the fractional ownership, fractional
ownership program management services, and dry-lease aircraft
exchange aspects of the program.
HOUSE BILL

No provision.
SENATE AMENDMENT

Under the provision, transportation as part of a fractional ownership aircraft program is not classified as commercial aviation for
Federal excise tax purposes. Instead, such flights would be subject
to the increased Airport and Airway Trust Fund fuel tax rate for
noncommercial aviation and an additional fuel surtax of 14.1 cents
per gallon. For this purpose, a ‘‘fractional ownership aircraft program’’ is defined as a program in which:
• A single fractional ownership program manager provides
fractional ownership program management services on behalf
of the fractional owners;
• Two or more airworthy aircraft are part of the program;
• There are one or more fractional owners per program
aircraft, with at least one program aircraft having more than
one owner;
• Each fractional owner possesses at least a minimum
fractional ownership interest in one or more program aircraft; 30
• There exists a dry-lease aircraft exchange arrangement
among all of the fractional owners; 31 and
• There are multi-year program agreements covering the
fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the
program.
The fuel taxes are dedicated to the Airport and Airway Trust
Fund. Consistent with the general extension of the taxes dedicated
to the Airport and Airway Trust Fund, the provision sunsets September 30, 2013.
Effective date.—The provision is effective for taxable transportation provided after, and fuel used after, March 31, 2011.
CONFERENCE AGREEMENT

pwalker on DSK7TPTVN1PROD with REPORTS

The conference agreement provides an exemption, through
September 30, 2015, from the commercial aviation taxes (secs.
4261, 4271 and the 4.4 cents-per-gallon tax on fuel) for certain frac30 A ‘‘minimum fractional ownership interest’’ means: (1) A fractional ownership interest equal
to or greater than one-sixteenth (1/16) of at least one subsonic, fixed wing or powered lift program aircraft; or (2) a fractional ownership interest equal to or greater than one-thirty-second
(1/32) of at least one rotorcraft program aircraft. A ‘‘fractional ownership interest’’ is (1) the ownership interest in a program aircraft; (2) the holding of a multi-year leasehold interest in a program aircraft; or (3) the holding or a multi-year leasehold interest that is convertible into an
ownership interest in a program aircraft.
31 A ‘‘dry-lease aircraft exchange’’ means an arrangement, documented by the written program
agreements, under which the program aircraft are available, on an as-needed basis without
crew, to each fractional owner.

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pwalker on DSK7TPTVN1PROD with REPORTS

tional aircraft program flights. In place of the commercial aviation
taxes, the conference agreement applies a fuel surtax to certain
flights made as part of a fractional ownership program.
Through September 30, 2015, these flights are treated as noncommercial aviation, subject to the fuel surtax and the base fuel
tax for fuel used in noncommercial aviation.32 Specifically, the additional fuel surtax of 14.1 cents per gallon will apply to fuel used
in a fractional program aircraft (1) for the transportation of a
qualified fractional owner with respect to the fractional aircraft
program of which such aircraft is a part, and (2) with respect to
the use of such aircraft on the account of such a qualified owner.
Such use includes positioning flights (flights in deadhead service).33
Through September 30, 2015, the commercial aviation taxes do not
apply to fractional program aircraft uses subject to the fuel surtax.
Under the conference agreement, flight demonstration, maintenance, and crew training flights by a fractional program aircraft
are excluded from the fuel surtax and are subject to the noncommercial aviation fuel tax only.34 The fuel surtax of 14.1 cents
per gallon sunsets September 30, 2021.
A ‘‘fractional program aircraft’’ means, with respect to any fractional ownership aircraft program, any aircraft which is listed as
a fractional program aircraft in the management specifications
issued to the manager of such program by the Federal Aviation Administration under subpart K of part 91 of title 14, Code of Federal
Regulations and is registered in the United States.
A ‘‘fractional ownership aircraft program’’ is a program under
which:
• A single fractional ownership program manager provides
fractional ownership program management services on behalf
of the fractional owners;
• There are one or more fractional owners per program
aircraft, with at least one program aircraft having more than
one owner;
• With respect to at least two fractional program aircraft,
none of the ownership interests in such aircraft can be less
than the minimum fractional ownership interest, or held by
the program manager;
• There exists a dry-lease aircraft exchange arrangement
among all of the fractional owners; and
• There are multi-year program agreements covering the
fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the
program.
The term ‘‘qualified fractional owner’’ means any fractional
owner that has a minimum fractional ownership interest in at least
one fractional program aircraft. A ‘‘minimum fractional ownership
32 No inference is intended as to the treatment of these flights as noncommercial aviation
under present law.
33 A flight in deadhead service is presumed subject to the fuel surtax unless the costs for such
flight are separately billed to a person other than a qualified owner. For example, if the costs
associated with a positioning flight of a fractional program aircraft are separately billed to a
person chartering the aircraft, that positioning flight is treated as commercial aviation.
34 It is the understanding of the conferees that a prospective purchaser does not pay any
amount for transportation by demonstration flights, and that if an amount were paid for the
flight, the flight would be subject to the commercial aviation taxes and not treated as noncommercial aviation.

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281
interest’’ means: (1) A fractional ownership interest equal to or
greater than one-sixteenth (1/16) of at least one subsonic, fixed
wing or powered lift program aircraft; or (2) a fractional ownership
interest equal to or greater than one-thirty-second (1/32) of at least
one rotorcraft program aircraft. A ‘‘fractional ownership interest’’ is
(1) the ownership interest in a program aircraft; (2) the holding of
a multi-year leasehold interest in a program aircraft; or (3) the
holding or a multi-year leasehold interest that is convertible into
an ownership interest in a program aircraft. A ‘‘fractional owner’’
means a person owning any interest (including the entire interest)
in a fractional program aircraft.
Amounts equivalent to the revenues from the fuel surtax are
dedicated to the Airport and Airway Trust Fund.
Effective date.—The provision is effective for taxable transportation provided after, uses of aircraft after, and fuel used after,
March 31, 2012.
Termination of Exemption for Small Jet Aircraft on Nonestablished
Lines (sec. 806 of the Senate amendment, sec. 1107 of the conference agreement and sec. 4281 of the Code)
PRESENT LAW

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

No provision.
SENATE AMENDMENT

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

The conference agreement follows the Senate amendment provision, repealing the exemption as it applies to jet aircraft, effective
for transportation provided after March 31, 2012.
F. Transparency in Passenger Tax Disclosures (sec. 807 of the Senate amendment, sec. 1104 of the conference agreement, and sec.
7275 of the Code)

pwalker on DSK7TPTVN1PROD with REPORTS

PRESENT LAW

Transportation providers are subject to special penalties relating to the disclosure of the amount of the passenger taxes on tickets and in advertising. The ticket is required to show the total
amount paid for such transportation and the tax. The same re-

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282
quirements apply to advertisements. In addition, if the advertising
separately states the amount to be paid for the transportation or
the amount of taxes, the total shall be stated at least as prominently as the more prominently stated of the tax or the amount
paid for transportation. Failure to satisfy these disclosure requirements is a misdemeanor, upon conviction of which the guilty party
is fined not more than $100 per violation.35
There is no prohibition against airlines including other charges
in the required passenger taxes disclosure (e.g., fuel surcharges retained by the commercial airline). In practice, some but not all airlines include such other charges in the required passenger taxes
disclosure.
HOUSE BILL

No provision.
SENATE AMENDMENT

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

The conference agreement follows the Senate amendment, except the Effective date is for transportation provided after March
31, 2012.
G. Tax-Exempt Private Activity Bond Financing for Fixed-Wing
Emergency Medical Aircraft (sec. 808 of the Senate amendment,
sec. 1105 of the conference agreement, and sec. 147(e) of the
Code)
PRESENT LAW

Interest on bonds issued by State and local governments generally is excluded from gross income for Federal income tax purposes.36 Bonds issued by State and local governments may be classified as either governmental bonds or private activity bonds. Governmental bonds are bonds the proceeds of which are primarily
used to finance governmental functions or which are repaid with
governmental funds. In general, private activity bonds are bonds in
which the State or local government serves as a conduit providing
financing to nongovernmental persons (e.g., private businesses or
individuals).37 The exclusion from income for State and local bonds
does not apply to private activity bonds, unless the bonds are
pwalker on DSK7TPTVN1PROD with REPORTS

35

Sec. 7275.
103(a).
sec. 141 defining ‘‘private activity bond.’’

36 Sec.
37 See

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283
issued for certain permitted purposes (‘‘qualified bonds’’) and other
Code requirements are met.38
Section 147(e) of the Code provides, in part, that a private activity bond is not a qualified bond if issued as part of an issue and
any portion of the proceeds of such issue is used for airplanes.39
The IRS has ruled that a helicopter is not an ‘‘airplane’’ for purposes of section 147(e).40
A fixed-wing aircraft providing air transportation for emergency medical services and that is equipped for, and exclusively
dedicated on that flight to, acute care emergency medical services
is exempt from the air transportation excise taxes imposed by sections 4261 and 4271.41
HOUSE BILL

No provision.
SENATE AMENDMENT

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

The conference agreement follows the Senate amendment.
H. Protection of Airport and Airway Trust Fund Solvency (sec. 809
of the Senate amendment)
PRESENT LAW

The uncommitted cash balance in the Airport and Airway
Trust Fund has declined significantly in recent years. At the end
of Fiscal Year 2001, the uncommitted cash balance was $7.3 billion.
At the end of Fiscal Year 2010, the balance was approximately
$770 million.42
The current statutory formula requires that estimated Airport
and Airway Trust Fund receipts each year must equal trust fund
expenditures. However, amounts appropriated from the Airport and
Airway Trust Fund are based on revenue receipt projections and
have exceeded the amounts actually deposited into the Airport and
Airway Trust Fund, resulting in declines in the uncommitted cash
balance.
38 See

sec. 103(b) and sec. 141(e).
prohibited facilities include any skybox, or other private luxury box, health club facility, facility primarily used for gambling, or store the principal business of which is the sale of
alcoholic beverages for consumption off premises. Sec. 147(e).
40 Rev. Rul. 2003–116, 2003–46 I.R.B. 1083, 2003–2 C.B. 1083, November 17, 2003, (released:
October 29, 2003).
41 Sec. 4261(g)(2).
42 Government Accountability Office, Airport and Airway Trust Fund: Declining Balance
Raises Concerns Over Ability to Meet Future Demands, February 3, 2011, p. 5.

pwalker on DSK7TPTVN1PROD with REPORTS

39 Other

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284
HOUSE BILL

No provision.
SENATE AMENDMENT

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

The conference agreement does not include the Senate amendment provision, but this matter is addressed by section 104 of Title
I of the conference agreement.
J. Rollover of Amounts Received in Airline Carrier Bankruptcy
(sec. 810 of the Senate amendment and sec. 1106 of the conference agreement)
PRESENT LAW

pwalker on DSK7TPTVN1PROD with REPORTS

The Code provides for two types of individual retirement arrangements (‘‘IRAs’’): traditional IRAs and Roth IRAs.43 In general,
contributions (other than a rollover contribution) to a traditional
IRA may be deductible from gross income, and distributions from
a traditional IRA are includible in gross income to the extent not
attributable to a return of nondeductible contributions. In contrast,
contributions to a Roth IRA are not deductible, and qualified distributions from a Roth IRA are excludable from gross income. Distributions from a Roth IRA that are not qualified distributions are
includible in gross income to the extent attributable to earnings. In
general, a qualified distribution is a distribution that (1) is made
after the five taxable year period beginning with the first taxable
year for which the individual first made a contribution to a Roth
IRA, and (2) is made on or after the individual attains age 591⁄2,
death, or disability or which is a qualified special purpose distribution.
The total amount that an individual may contribute to one or
more IRAs for a year is generally limited to the lesser of: (1) a dollar amount ($5,000 for 2012); or (2) the amount of the individual’s
compensation that is includible in gross income for the year.44 As
under the rules relating to traditional IRAs, a contribution of up
to the dollar limit for each spouse may be made to a Roth IRA provided the combined compensation of the spouses is at least equal
to the contributed amount.
If an individual makes a contribution to an IRA (traditional or
Roth) for a taxable year, the individual is permitted to recharacterize (in a trustee-to-trustee transfer) the amount of that contribution as a contribution to the other type of IRA (traditional or Roth)
before the due date for the individual’s income tax return for that
43 Traditional
44 The

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IRAs are described in section 408, and Roth IRAs are described in section 408A.
maximum contribution amount is increased for individuals 50 years of age or older.

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285
year.45 In the case of a recharacterization, the contribution will be
treated as having been made to the transferee plan. The amount
transferred must be accompanied by any net income allocable to
the contribution and no deduction is allowed with respect to the
contribution to the transferor plan. Both regular contributions and
conversion contributions to a Roth IRA can be recharacterized as
having been made to a traditional IRA. However, Treasury regulations limit the number of times a contribution for a taxable year
may be recharacterized.46
Taxpayers generally may convert a traditional IRA into a Roth
IRA.47 The amount converted is includible in income as if a withdrawal had been made, except that the early distribution tax (discussed below) does not apply. However, the early distribution tax
is applied if the taxpayer withdraws the amount within five years
of the conversion.
If certain requirements are satisfied, a participant in an employer-sponsored qualified plan (which includes a tax-qualified retirement plan described in section 401(a), an employee retirement
annuity described in section 403(a), a tax-sheltered annuity described in section 403(b), and a governmental section 457(b) plan)
or a traditional IRA may roll over distributions from the plan, annuity or IRA into another plan, annuity or IRA. For distributions
after December 31, 2007, certain taxpayers also are permitted to
make rollover contributions into a Roth IRA (subject to inclusion in
gross income of any amount that would be includible were it not
part of the rollover contribution).
Under section 125 of the Worker, Retiree, and Employer Recovery Act of 2008 (‘‘WRERA’’),48 a ‘‘qualified airline employee’’ may
contribute any portion of an ‘‘airline payment amount’’ to a Roth
IRA within 180 days of receipt of such amount (or, if later, within
180 days of enactment of the provision). Such a contribution is
treated as a qualified rollover contribution to the Roth IRA. Thus,
the portion of the airline payment amount contributed to the Roth
IRA is includible in gross income to the extent that such payment
would be includible were it not part of the rollover contribution.
A qualified airline employee is an employee or former employee
of a commercial passenger airline carrier who was a participant in
a defined benefit plan maintained by the carrier which: (1) is qualified under section 401(a); and (2) was terminated or became subject
to the benefit accrual and other restrictions applicable to plans
maintained by commercial passenger airlines pursuant to section
402(b) of the Pension Protection Act of 2006 (‘‘PPA’’).
An airline payment amount is any payment of any money or
other property payable by a commercial passenger airline to a
qualified airline employee: (1) under the approval of an order of a
Federal bankruptcy court in a case filed after September 11, 2001,
and before January 1, 2007; and (2) in respect of the qualified air45

Sec. 408A(d)(6).
Treas. Reg. sec. 1.408A–5.
For taxable years beginning prior to January 1, 2010, taxpayers with modified AGI in excess of $100,000, and married taxpayers filing separate returns, were generally not permitted
to convert a traditional IRA into a Roth IRA. Under the Tax Increase Prevention and Reconciliation Act of 2005, Pub. L. No. 109–222, these limits on conversion are repealed for taxable years
beginning after December 31, 2009.
48 Pub. L. No. 110–455.
46

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47

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286
line employee’s interest in a bankruptcy claim against the airline
carrier, any note of the carrier (or amount paid in lieu of a note
being issued), or any other fixed obligation of the carrier to pay a
lump sum amount. An airline payment amount does not include
any amount payable on the basis of the carrier’s future earnings
or profits. The amount that may be contributed to a Roth IRA is
the gross amount of the payment; any reduction in the airline payment amount on account of employment tax withholding is disregarded.
HOUSE BILL

No provision.

pwalker on DSK7TPTVN1PROD with REPORTS

SENATE AMENDMENT

The amendment expands the choices for recipients of airline
payment amounts by allowing qualified airline employees to contribute airline payment amounts to a traditional IRA as a rollover
contribution. An individual making such a rollover contribution
may exclude the contributed airline payment amount from gross income in the taxable year in which the airline payment amount was
paid.
Qualified airline employees who made a qualified rollover contribution of an airline payment amount to a Roth IRA pursuant to
WRERA are permitted to recharacterize all or a portion of the
qualified rollover contribution as a rollover contribution to a traditional IRA by transferring, in a trustee-to-trustee transfer, the contribution (or a portion thereof) plus attributable earnings (or losses)
from the Roth IRA. As in the case of a recharacterization under
present law, the airline payment amount so transferred (with attributable earnings) is deemed to have been contributed to the traditional IRA at the time of the initial rollover contribution into the
Roth IRA. The trustee-to-trustee transfer to a traditional IRA must
be made within 180 days of the amendment’s enactment.
If an amount contributed to a Roth IRA as a rollover contribution is recharacterized as a rollover contribution to a traditional
IRA, the amount so recharacterized may not be contributed to a
Roth IRA as a qualified rollover contribution (i.e., reconverted to a
Roth IRA) during the five taxable years immediately following the
taxable year in which the transfer to the traditional IRA was made.
Qualified airline employees who were eligible to make a qualified rollover to a Roth IRA under WRERA, but declined to do so,
are now permitted to roll over the airline payment amount to a traditional IRA within 180 days of the receipt of the amount (or, if
later, within 180 days of enactment of the amendment). As mentioned above, any portion of an airline payment amount recharacterized as a rollover contribution to a traditional IRA pursuant to the amendment is excluded from gross income in the taxable
year in which the airline payment amount was paid to the qualified
airline employee by the commercial passenger airline carrier. Individuals recharacterizing such contributions may file a claim for a
refund until the later of: (1) the period of limitations under section
6511(a) (generally, three years from the time the return was filed
or two years from the time the tax was paid, whichever period expires later); or (2) April 15, 2012.

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An airline payment amount does not fail to be treated as
wages for purposes of Social Security and Medicare taxes under the
Federal Insurance Contributions Act 49 and section 209 of the Social Security Act, merely because the amount is excluded from
gross income because it is rolled over into a traditional IRA pursuant to the amendment.
Surviving spouses of qualified airline employees are granted
the same rights as qualified airline employees under section 125 of
WRERA and under the amendment.
Effective date.—Effective for all transfers (made after date of
enactment) of qualified airline payment amounts received before,
on, or after date of enactment.
CONFERENCE AGREEMENT

The conference agreement follows the Senate amendment with
three modifications. First, a qualified airline employee is not permitted to contribute (using either a rollover or recharacterization)
an airline payment amount to a traditional IRA for a taxable year
if, before the end of the taxable year, the employee was at any time
a covered employee, as defined in section 162(m)(3),50 of the commercial passenger airline carrier making the qualified airline payment. Second, a qualified airline employee who was not at any time
a covered employee may only roll over, or recharacterize, into a traditional IRA 90 percent of the aggregate amount of airline payment
amounts received before the end of the taxable year. Third, individuals recharacterizing their contributions may file a claim for a refund until the later of: (1) the period of limitations under section
6511(a) (generally, three years from the time the return was filed
or two years from the time the tax was paid, whichever period expires later); or (2) April 15, 2013.
K. Application of Levy to Payments to Federal Vendors Relating to
Property (sec. 811 of the Senate amendment)
PRESENT LAW

In general
Levy is the IRS’s administrative authority to seize a taxpayer’s
property, or rights to property, to pay the taxpayer’s tax liability.51
Generally, the IRS is entitled to seize a taxpayer’s property by levy
if a Federal tax lien has attached to such property,52 and the IRS
49

Chapter 21 of the Code.
Section 162(m) defines a covered employee as (1) the chief executive officer of the corporation (or an individual acting in such capacity) as of the close of the taxable year and (2) the
four most highly compensated officers for the taxable year (other than the chief executive officer). Treas. Reg. sec. 1.162–27(c)(2) provides that whether an employee is the chief executive
officer or among the four most highly compensated officers should be determined pursuant to
the executive compensation disclosure rules promulgated under the Securities Exchange Act of
1934. Notice 2007–49, 2007–25 I.R.B. 1429 provides that ‘‘covered employee’’ means any employee who is (1) the principal executive officer (or an individual acting in such capacity) defined
in reference to the Exchange Act, or (2) among the three most highly compensated officers for
the taxable year (other than the principal executive officer) to reflect the 2006 change by the
Securities and Exchange Commission to its rules.
51 Sec. 6331(a). Levy specifically refers to the legal process by which the IRS orders a third
party to turn over property in its possession that belongs to the delinquent taxpayer named in
a notice of levy.
52 Ibid.

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has provided both notice of intention to levy 53 and notice of the
right to an administrative hearing (the notice is referred to as a
‘‘collections due process notice’’ or ‘‘CDP notice’’ and the hearing is
referred to as the ‘‘CDP hearing’’) 54 at least 30 days before the levy
is made. A Federal tax lien arises automatically when: (1) a tax assessment has been made; (2) the taxpayer has been given notice of
the assessment stating the amount and demanding payment; and
(3) the taxpayer has failed to pay the amount assessed within 10
days after the notice and demand.55
The notice of intent to levy is not required if the Secretary
finds that collection would be jeopardized by delay. The standard
for determining whether jeopardy exists is similar to the standard
applicable when determining whether assessment of tax without
following the normal deficiency procedures is permitted.56
The CDP notice (and pre-levy CDP hearing) is not required if
the Secretary finds that collection would be jeopardized by delay or
the Secretary has served a levy on a State to collect a Federal tax
liability from a State tax refund. In addition, a levy issued to collect Federal employment taxes is excepted from the CDP notice and
the pre-levy CDP hearing requirement if the taxpayer subject to
the levy requested a CDP hearing with respect to unpaid employment taxes arising in the two-year period before the beginning of
the taxable period with respect to which the employment tax levy
is served. In each of these three cases, however, the taxpayer is
provided an opportunity for a hearing within a reasonable period
of time after the levy.57
Federal payment levy program
To help the IRS collect taxes more effectively, the Taxpayer
Relief Act of 1997 58 authorized the establishment of the Federal
Payment Levy Program (‘‘FPLP’’), which allows the IRS to continuously levy up to 15 percent of certain ‘‘specified payments,’’ such as
government payments to Federal contractors (including vendors)
that are delinquent on their tax obligations. With respect to Federal payments to vendors of goods, services, or property, the continuous levy may be up to 100 percent of each payment.59 The levy
(either up to 15 percent or up to 100 percent) generally continues
in effect until the liability is paid or the IRS releases the levy.
Under FPLP, the IRS matches its accounts receivable records
with Federal payment records maintained by the Department of
the Treasury’s Financial Management Service (‘‘FMS’’), such as certain Social Security benefit and Federal wage records. When these
records match, the delinquent taxpayer is provided both the notice
of intention to levy and the CDP notice. If the taxpayer does not
respond after 30 days, the IRS can instruct FMS to levy the taxpayer’s Federal payments. Subsequent payments are continuously
53 Sec.

6331(d).
6330. The notice and the hearing are referred to collectively as the CDP requirements.
6321.
56 Secs. 6331(d)(3), 6861.
57 Sec. 6330(f).
58 Pub. L. No. 105–34.
59 Sec. 6331(h)(3). The word ‘‘property’’ was added to ‘‘goods or services’’ in section 301 of the
‘‘3% Withholding Repeal and Job Creation Act,’’ Pub. L. No. 112–56.
54 Sec.

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levied until such time that the tax debt is paid or IRS releases the
levy.
HOUSE BILL

No provision.
SENATE AMENDMENT

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

The conference agreement does not include the Senate amendment provision. Section 6331(h)(3) was amended to add ‘‘property’’
to ‘‘goods or services’’ to allow the IRS to levy 100 percent of any
payment due to a Federal vendor with unpaid Federal tax liabilities in section 301 of the ‘‘3% Withholding Repeal and Job Creation Act,’’ Pub. L. No. 112–56.
L. Modification of Control Definition for Purposes of Section 249
(sec. 812 of the Senate amendment, sec. 1108 of the conference
agreement, and sec. 249 of the Code)
PRESENT LAW

In general, where a corporation repurchases its indebtedness
for a price in excess of the adjusted issue price, the excess of the
repurchase price over the adjusted issue price (the ‘‘repurchase premium’’) is deductible as interest.60 However, in the case of indebtedness that is convertible into the stock of (1) the issuing corporation, (2) a corporation in control of the issuing corporation, or (3)
a corporation controlled by the issuing corporation, section 249 provides that any repurchase premium is not deductible to the extent
it exceeds ‘‘a normal call premium on bonds or other evidences of
indebtedness which are not convertible.’’ 61
For purposes of section 249, the term ‘‘control’’ has the meaning assigned to such term by section 368(c). Section 368(c) defines
‘‘control’’ as ‘‘ownership of stock possessing at least 80 percent of
the total combined voting power of all classes of stock entitled to
vote and at least 80 percent of the total number of shares of all
other classes of stock of the corporation.’’ Thus, section 249 can
60 See

Treas. Reg. sec. 1.163–7(c).
under section 249 provide that ‘‘[f]or a convertible obligation repurchased on
or after March 2, 1998, a call premium specified in dollars under the terms of the obligation
is considered to be a normal call premium on a nonconvertible obligation if the call premium
applicable when the obligation is repurchased does not exceed an amount equal to the interest
(including original issue discount) that otherwise would be deductible for the taxable year of repurchase (determined as if the obligation were not repurchased).’’ Treas. Reg. sec. 1.249–1(d)(2).
Where a repurchase premium exceeds a normal call premium, the repurchase premium is still
deductible to the extent that it is attributable to the cost of borrowing (e.g., a change in prevailing yields or the issuer’s creditworthiness) and not attributable to the conversion feature.
See Treas. Reg. sec. 1.249–1(e).

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61 Regulations

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apply to debt convertible into the stock of the issuer, the parent of
the issuer, or a first-tier subsidiary of the issuer.
HOUSE BILL

No provision.
SENATE AMENDMENT

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

The conference agreement follows the Senate amendment provision.
M. Repeal of Expansion of Information Reporting Requirements
(sec. 1101 of the Senate amendment)
PRESENT LAW

A variety of information reporting requirements apply under
present law.62 These requirements are intended to assist taxpayers
in preparing their income tax returns and to help the IRS determine whether such returns are correct and complete. The primary
provision governing information reporting by payors requires an information return by every person engaged in a trade or business
who makes payments for services or determinable gains to any one
payee aggregating $600 or more in any taxable year in the course
of that payor’s trade or business.63 Payments subject to reporting
62

Secs. 6031 through 6060.
6041(a). Information returns are generally submitted electronically on Forms 1096 and
Forms 1099, although certain payments to beneficiaries or employees may require use of Forms
W–3 and W–2, respectively. Treas. Reg. sec. 1.6041–1(a)(2). The requirement that businesses report certain payments is generally not applicable to payments by persons engaged in a passive
investment activity. However, for a brief period starting in 2011, the recipients of rental income
from real estate were generally subject to the same information reporting requirements as taxpayers engaged in a trade or business such that recipients of rental income making payments
of $600 or more to a service provider (such as a plumber, painter, or accountant) in the course
of earning rental income were required to provide an information return to the IRS and to the
service provider. Small Business Jobs Act of 2010, Pub. L. No. 111–240, sec. 2101, September

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include fixed or determinable income or compensation, but do not
include payments for goods or certain enumerated types of payments that are subject to other specific reporting requirements.64
The payor is required to provide the recipient of the payment with
an annual statement showing the aggregate payments made and
contact information for the payor.65 The regulations generally provide exceptions from reporting of payments to corporations,66 exempt organizations, governmental entities, international organizations, or retirement plans.67 However, the following types of payments to corporations must be reported: Medical and health care
payments; 68 fish purchases for cash; 69 attorney’s fees; 70 gross proceeds paid to an attorney; 71 substitute payments in lieu of dividends or tax-exempt interest; 72 and payments by a Federal executive agency for services.73
Detailed rules are provided for the reporting of various types
of investment income, including interest, dividends, and gross proceeds from brokered transactions (such as a sale of stock).74 In general, the requirement to file Form 1099 applies with respect to
amounts paid to U.S. persons and is linked to the backup withholding rules of section 3406. Thus, a payor of interest, dividends
or gross proceeds generally must request that a U.S. payee (other
than certain exempt recipients) furnish a Form W–9 providing that
person’s name and taxpayer identification number.75 That information is then used to complete the Form 1099.
Failure to comply with the information reporting requirements
results in penalties, which may include a penalty for failure to file
the information return,76 and a penalty for failure to furnish payee
27, 2010. This rule was repealed in the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011, Pub. L. No. 112–9, sec. 3, April 14, 2011.
64 Sec. 6041(a) requires reporting as to ‘‘other fixed or determinable gains, profits, and income
(other than payments to which section 6042(a)(1), 6044(a)(1), 6047(c), 6049(a) or 6050N(a) applies and other than payments with respect to which a statement is required under authority
of section 6042(a), 6044(a)(2) or 6045)[.]’’ The payments thus excepted include most interest, royalties, and dividends.
65 Sec. 6041(d).
66 The regulatory carveout for payments to corporations was expressly overridden for payments made after December 31, 2011 in the Patient Protection and Affordable Care Act
(‘‘PPACA’’), Pub. L. No. 111–148, sec. 9006 March 23, 2010, which expanded the class of payments subject to reporting to include payments to corporations and payments of gross proceeds
paid in consideration for any type of property. However, these rules were repealed in the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act
of 2011, Pub. L. No. 112–9, sec. 2, April 14, 2011.
67 Treas. Reg. sec. 1.6041–3(p). Certain for-profit health provider corporations are not covered
by this general exception, including those organizations providing billing services for such companies.
68 Sec. 6050T.
69 Sec. 6050R.
70 Sec. 6045(f)(1) and (2); Treas. Reg. secs. 1.6041–1(d)(2) and 1.6045–5(d)(5).
71 Ibid.
72 Sec. 6045(d).
73 Sec. 6041A(d)(3). In addition, section 6050M provides that the head of every Federal executive agency that enters into certain contracts must file an information return reporting the contractor’s name, address, TIN, date of contract action, amount to be paid to the contractor, and
any other information required by Forms 8596 (Information Return for Federal Contracts) and
8596A (Quarterly Transmittal of Information Returns for Federal Contracts).
74 Secs. 6042 (dividends), 6045 (broker reporting) and 6049 (interest), as well as the Treasury
regulations thereunder.
75 See Treas. Reg. sec. 31.3406(h)–3.
76 Sec. 6721. The penalty for failure to file an information return generally is $100 for each
return for which such failure occurs. The total penalty imposed on a person for all failures during a calendar year cannot exceed $1,500,000. Additionally, special rules apply to reduce the
per-failure and maximum penalties where the failure is corrected within a specified period.
Small Business Jobs Act of 2010, Pub. L. No. 111–240, sec. 2102, September 27, 2010.

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statements,77 or failure to comply with other various reporting requirements.78
HOUSE BILL

No provision.
SENATE AMENDMENT

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

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

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

77 Sec. 6722. The penalty for failure to provide a correct payee statement is $100 for each
statement with respect to which such failure occurs, with the total penalty for a calendar year
not to exceed $1,500,000. Special rules apply that increase the per-statement and total penalties
where there is intentional disregard of the requirement to furnish a payee statement. Small
Business Jobs Act of 2010, Pub. L. No. 111–240, sec. 2102, September 27, 2010.
78 Sec. 6723. The penalty for failure to timely comply with a specified information reporting
requirement is $50 per failure, not to exceed $100,000 for a calendar year.

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

H1201/S901
House bill
Section 1201 specifies that the budgetary effects of this Act, in
complying with the Statutory Pay-As-You-Go act of 2010, shall be
determined by reference to the latest statement titled ‘‘Budgetary
Effects of PAYGO Legislation’’ for this Act.
Senate bill
Section 901 provides that the budgetary effects of the amendment, for purposes of complying with the Statutory Pay-As-You-GoAct of 2010, shall be determined by reference to the ‘‘Budgetary Effects’’ statement of the House and Senate Budget Committee Chairmen provided that such statement has been submitted prior to the
vote on passage in the House acting first on this conference report
or amendments between the Houses.
Conference Substitute
Senate bill.
TITLE XIII—COMMERCIAL SPACE
COMMERCIAL SPACE LAUNCH LICENSE REQUIREMENTS

H1301/S—
House bill
Section 1301 would extend the original eight year learning period passed in the Commercial Space Launch Amendments Act of
2004, which expires in 2012. Current law includes an eight-year
regulatory ‘‘waiting period,’’ starting with the first FAA-licensed
launch of a ‘‘spaceflight participant’’ (a person who pays to experience spaceflight), during which commercial spaceflight providers
would not be subject to any FAA regulation, barring any perceived
or realized endangerment of public safety.
Senate bill
No similar provision.

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Conference Substitute
House bill modified to prohibit proposing regulations until October 1, 2015. Nothing in this provision is intended to prohibit the
FAA and industry stakeholders from entering into discussions intended to prepare the FAA for its role in appropriately regulating
the commercial space flight industry when this provision expires.

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

H—/S1001
House bill
No similar provision.
Senate bill
Section 1001 defines the term ‘‘earmark’’ as a congressionally
directed spending item as defined by Senate rules or a congressional earmark as defined by the rules of the House.
Conference Substitute
House bill.
RESCISSION

H—/S1002
House bill
No similar provision.
Senate bill
Section 1002 rescinds DOT earmark funds with more than 90
percent of the amount remaining available for obligation at the end
of the 9th fiscal year following the fiscal year in which the earmark
was made available for obligation. Also, it provides an exception if
the Secretary of Transportation determines that additional obligation of the earmark is likely to occur during the following 12 month
period.
Conference Substitute
House bill.
AGENCY WIDE IDENTIFICATION AND REPORTS

H—/S1003
House bill
No similar provision.

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Senate bill
Section 1003 requires each federal agency to identify and report every project that is an earmark with an unobligated balance
at the end of each fiscal year to the Director of the Office of Management and Budget (OMB). Also, it requires the Director of OMB
to submit an annual report on these earmarks to Congress and
publically post the report on the OMB website.
Conference Substitute
House bill.

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

H—/S1101
House bill
No similar provision.
Senate bill
Section 1101 repeals a section of the Patient Protection and Affordable Care Act which required businesses to report purchases of
$600 or more to the Internal Revenue Service (IRS).
Conference Substitute
Senate bill dropped because the language was used to create
P.L. 112–9, The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011.
TITLE XII—EMERGENCY MEDICAL SERVICE PROVIDERS
PROTECTION ACT
DALE LONG EMERGENCY MEDICAL SERVICES PROVIDERS PROTECTION
ACT

H—/S1201, 1211, 1212, 1213
House bill
No similar provision.

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Senate bill
Section 1201 provides liability protection for volunteer pilots
that fly for public benefit, including transportation at no cost to financially needy medical patients for medical treatment, evaluation
and diagnosis; flights for humanitarian and charitable purposes;
and other flights of compassion.
Section 1211 provides a title for the subtitle, the ‘‘Volunteer
Pilot Protection Act of 2011.’’
Section 1212 states findings of Congress on the necessity of
protections for pilots who volunteer their services.
Section 1213 allows pilots who operate volunteer flights for
most charitable institutions to receive reimbursement from those
institutions for some operations costs including fuel.
Conference Substitute
No provision.
Pursuant to clause 9 of rule XXI of the Rules of the House of
Representatives, no provision in this conference report or joint explanatory statement includes a congressional earmark, limited tax
benefit, or limited tariff benefit.
From the Committee on Transportation and Infrastructure, for consideration of the House bill and the Senate
amendment, and modifications committed to conference:
JOHN L. MICA,

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THOMAS E. PETRI,
JOHN J. DUNCAN, Jr.,
SAM GRAVES,
BILL SHUSTER,
JEAN SCHMIDT,
CHIP CRAVAACK,
NICK J. RAHALL II,
PETER A. DEFAZIO,
JERRY F. COSTELLO,
LEONARD L. BOSWELL,
RUSS CARNAHAN,
From the Committee on Science, Space, and Technology,
for consideration of sections 102, 105, 201, 202, 204, 208,
209, 212, 220, 321, 324, 326, 812, title X, and title XIII of
the House bill and sections 102, 103, 106, 216, 301, 302,
309, 320, 327, title VI, and section 732 of the Senate
amendment, and modifications committed to conference:
RALPH M. HALL,
STEVEN M. PALAZZO,
EDDIE BERNICE JOHNSON,
From the Committee on Ways and Means, for consideration of title XI of the House bill and titles VIII and XI of
the Senate amendment, and modifications committed to
conference:
DAVE CAMP,
PATRICK J. TIBERI,
SANDER M. LEVIN,
Managers on the Part of the House.
JOHN D. ROCKEFELLER IV,
BARBARA BOXER,
BILL NELSON,
MARIA CANTWELL,
KAY BAILEY HUTCHISON,
JOHNNY ISAKSON,
From the Committee on Finance:
MAX BAUCUS,
Managers on the Part of the Senate.

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Æ

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