49 U.S.C. § 47124 — Agreements for State and local operation of airport facilities

**(a) Government Relief From Liability.—** The Secretary of Transportation shall ensure that an agreement under this subchapter with a qualified entity (as determined by the Secretary), State, or a political subdivision of a State to allow the entity, State, or subdivision to operate an airport facility relieves the United States Government from any liability arising out of, or related to, acts or omissions of employees of the entity, State, or subdivision in operating the airport facility. **(b) Air Traffic Control Contract Program.—** (1) **Contract tower program.—** (A) *Continuation.—* — The Secretary shall continue the low activity (Visual Flight Rules) level I air traffic control tower contract program established under subsection (a) of this section for towers existing on December 30, 1987, and extend the program to other towers as practicable. (B) *Special rule.—* — If the Secretary determines that a tower already operating under the Contract Tower Program has a benefit-to-cost ratio of less than 1.0, the airport sponsor or State or local government having jurisdiction over the airport shall not be required to pay the portion of the costs that exceeds the benefit— (i) for the 1-year period after such determination is made; or (ii) if an appeal of such determination is requested, for the 1-year period described in subsection (d)(4)(D). (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 Cost-share Program. (2) **General authority.—** (A) *In general.—* — The Secretary may make a contract with a qualified entity (as determined by the Secretary) or, on a sole source basis, with a State or a political subdivision of a State to allow the entity, State, or subdivision to operate an airport traffic control tower classified as a level I (Visual Flight Rules) tower if the Secretary decides that the entity, State, or subdivision has the capability to comply with the requirements of this paragraph. The contract shall require that the entity, State, or subdivision comply with applicable safety regulations in operating the facility and with applicable competition requirements in making a subcontract to perform work to carry out the contract. (B) *Small or medium hub airports.—* — In the case of a contract entered into on or after the date of enactment of this subparagraph to operate an airport traffic control tower at a small or medium hub airport, the contract shall require the Secretary, after coordination with the airport sponsor and the entity, State, or subdivision, and not later than 18 months after the date of enactment of the FAA Reauthorization Act of 2024, to provide funding sufficient for the cost of wages and benefits of at least 2 air traffic controllers for each tower operating shift. (3) **Cost-share program.—** (A) *In general.—* — The Secretary shall establish a program to contract for air traffic control services at nonapproach control towers, as defined by the Secretary, that do not qualify for the Contract Tower Program. (B) *Program components.—* — In carrying out the Cost-share Program, the Secretary shall— (i) utilize for purposes of cost-benefit analyses, current, actual, site-specific data, forecast estimates, or airport master plan data provided by a facility owner or operator and verified by the Secretary; and (ii) approve for participation only facilities willing to fund a pro rata share of the operating costs of the air traffic control tower to achieve a 1-to-1 benefit-to-cost ratio using actual site-specific contract tower operating costs in any case in which there is an operating air traffic control tower or a remote air traffic control tower equipment that has received System Design Approval from the Federal Aviation Administration, as required for eligibility under the Contract Tower Program. (C) *Priority.—* — In selecting facilities to participate in the Cost-share Program, the Secretary shall give priority to the following facilities: (i) Air traffic control towers that are participating in the Contract Tower Program but have been notified that they will be terminated from such program because the Secretary has determined that the benefit-to-cost ratio for their continuation in such program is less than 1.0. (ii) Air traffic control towers that the Secretary determines have a benefit-to-cost ratio of at least .50. (iii) Air traffic control towers of the Federal Aviation Administration that are closed as a result of the air traffic controllers strike in 1981. (iv) Air traffic control towers located at airports or points at which an air carrier is receiving compensation under the essential air service program under this chapter. (v) Air traffic control towers located at airports that are prepared to assume partial responsibility for maintenance costs. (vi) Air traffic control towers located at airports with safety or operational problems related to topography, weather, runway configuration, or mix of aircraft. (vii) Air traffic control towers located at an airport at which the community has been operating the tower at its own expense. (viii) Air traffic control towers at airports with safety or operational problems related to the lack of an existing tower. (ix) Air traffic control towers at airports with projected commercial and military increases in aircraft or flight operations. (x) Air traffic control towers at airports with a variety of aircraft operations, including a variety of commercial and military flight operations. (D) *Costs exceeding benefits.—* — If the costs of operating an air traffic tower under the Cost-share Program exceed the benefits, the airport sponsor or State or local government having jurisdiction over the airport shall pay the portion of the costs that exceed such benefit, with the maximum allowable local cost share capped at 20 percent. Airports with air service provided under part 121 of title 14, Code of Federal Regulations, and more than 25,000 passenger enplanements in calendar year 2014 shall be exempt from any cost-share requirement under this paragraph. (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 2018 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 Contract Tower Program. (G) *Benefit-to-cost calculation.—* — Not later than 90 days after receiving an application to the Contract Tower Program, the Secretary shall calculate a benefit-to-cost ratio (as described in subsection (d)) for the applicable air traffic control tower for purposes of selecting towers for participation in the Contract Tower Program. (H) *Period for completion of an operational readiness inspection.—* — The Secretary shall provide airport sponsors acting in good faith 7 years to complete an operational readiness inspection after receiving a benefit-to-cost ratio of air traffic control services for an airport. (4) **Construction of air traffic control towers.—** (A) *Grants.—* — The Secretary may provide grants to a sponsor of— (i) a primary airport— (I) from amounts made available under sections 47114(c)(1) and 47114(c)(2) for the construction or improvement of a nonapproach control tower, as defined by the Secretary, and for the acquisition and installation of air traffic control, communications, and related equipment to be used in that tower; (II) from amounts made available under sections 47114(c)(1) and 47114(c)(2) for reimbursement for the cost of construction or improvement of a nonapproach control tower, as defined by the Secretary, incurred after October 1, 1996, if the sponsor complied with the requirements of sections 47107(e), 47112(b), and 47112(c) in constructing or improving that tower; and (III) from amounts made available under sections 47114(c)(1) and 47114(c)(2) for reimbursement for the cost of acquiring and installing in that tower air traffic control, communications, and related equipment that was acquired or installed after October 1, 1996, including remote air traffic control tower equipment certified by the Federal Aviation Administration or remote air traffic control tower equipment that has received System Design Approval from the Federal Aviation Administration; and (ii) a public-use airport that is not a primary airport— (I) from amounts made available under subsections (c) and (d) of section 47114 for the construction or improvement of a nonapproach control tower, as defined by the Secretary, and for the acquisition and installation of air traffic control, communications, and related equipment to be used in that tower; (II) from amounts made available under sections 47114(c) and 47114(d)(2)(A) for reimbursement for the cost of construction or improvement of a nonapproach control tower, as defined by the Secretary, incurred after October 1, 1996, if the sponsor complied with the requirements of sections 47107(e), 47112(b), and 47112(c) in constructing or improving that tower; and (III) from amounts made available under sections 47114(c) and 47114(d)(2)(A) for reimbursement for the cost of acquiring and installing in that tower air traffic control, communications, and related equipment that was acquired or installed after October 1, 1996, including remote air traffic control tower equipment certified by the Federal Aviation Administration or remote air traffic control tower equipment that has received System Design Approval from the Federal Aviation Administration. (B) *Eligibility.—* — An airport sponsor shall be eligible for a grant under this paragraph only if— (i) (I) the sponsor is a participant in the Federal Aviation Administration Contract Tower Program or the Cost-share Program; or (II) construction of a nonapproach control tower would qualify the sponsor to be eligible to participate in such program; (ii) the sponsor certifies that it will pay not less than 10 percent of the cost of the activities for which the sponsor is receiving assistance under this paragraph; (iii) the Secretary affirmatively accepts the proposed contract tower into a contract tower program under this section and certifies that the Secretary will seek future appropriations to pay the Federal Aviation Administration’s cost of the contract to operate the tower to be constructed under this paragraph; (iv) the sponsor certifies that it will pay its share of the cost of the contract to operate the tower to be constructed under this paragraph; and (v) in the case of a tower to be constructed under this paragraph from amounts made available under section 47114(d)(2)(B), the Secretary certifies that— (I) the Federal Aviation Administration has consulted the State within the borders of which the tower is to be constructed and the State supports the construction of the tower as part of its State airport capital plan; and (II) the selection of the tower for funding is based on objective criteria. **(c) 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. **(d) Criteria To Evaluate Participants.—** (1) **Timing of evaluations.—** (A) *Towers participating in cost-share program.—* — In the case of an air traffic control tower that is operated under the Cost-share Program, the Secretary shall annually calculate a benefit-to-cost ratio with respect to the tower. (B) *Towers participating in contract tower program.—* — In the case of an air traffic control tower that is operated under the Contract Tower Program, the Secretary shall not calculate a benefit-to-cost ratio after the date of enactment of this subsection with respect to the tower unless the Secretary determines that the annual aircraft traffic at the airport where the tower is located has decreased— (i) by more than 25 percent from the previous year; or (ii) by more than 55 percent cumulatively in the preceding 3-year period. (2) **Costs to be considered.—** — In establishing a benefit-to-cost ratio under this section with respect to an air traffic control tower, the Secretary shall consider only the following costs: (A) The Federal Aviation Administration’s actual cost of wages and benefits of personnel working at the tower. (B) The Federal Aviation Administration’s actual telecommunications costs directly associated with the tower. (C) The Federal Aviation Administration’s costs of purchasing and installing any air traffic control equipment that would not have been purchased or installed except as a result of the operation of the tower. (D) The Federal Aviation Administration’s actual travel costs associated with maintaining air traffic control equipment that is owned by the Administration and would not be maintained except as a result of the operation of the tower. (E) Other actual costs of the Federal Aviation Administration directly associated with the tower that would not be incurred except as a result of the operation of the tower (excluding costs for noncontract tower-related personnel and equipment, even if the personnel or equipment is located in the contract tower building). (3) **Other criteria to be considered.—** — In establishing a benefit-to-cost ratio under this section with respect to an air traffic control tower, the Secretary shall add a 10 percentage point margin of error to the benefit-to-cost ratio determination to acknowledge and account for the direct and indirect economic and other benefits that are not included in the criteria the Secretary used in calculating that ratio. (4) **Review of cost-benefit determinations.—** — In issuing a benefit-to-cost ratio determination under this section with respect to an air traffic control tower located at an airport, the Secretary shall implement the following procedures: (A) The Secretary shall provide the airport (or the State or local government having jurisdiction over the airport) at least 90 days following the date of receipt of the determination to submit to the Secretary a request for an appeal of the determination, together with updated or additional data in support of the appeal. (B) Upon receipt of a request for an appeal submitted pursuant to subparagraph (A), the Secretary shall— (i) transmit to the Administrator of the Federal Aviation Administration any updated or additional data submitted in support of the appeal; and (ii) provide the Administrator not more than 90 days to review the data and provide a response to the Secretary based on the review. (C) After receiving a response from the Administrator pursuant to subparagraph (B), the Secretary shall— (i) provide the airport, State, or local government that requested the appeal at least 30 days to review the response; and (ii) withhold from taking further action in connection with the appeal during that 30-day period. (D) If, after completion of the appeal procedures with respect to the determination, the Secretary requires the tower to transition into the Cost-share Program, the Secretary shall not require a cost-share payment from the airport, State, or local government for 1 year following the last day of the 30-day period described in subparagraph (C). **(e) Definitions.—** In this section: (1) **Contract tower program.—** — The term “Contract Tower Program” means the level I air traffic control tower contract program established under subsection (a) and continued under subsection (b)(1). (2) **Cost-share program.—** — The term “Cost-share Program” means the cost-share program established under subsection (b)(3). **(f) Improving Controller Situational Awareness.—** (1) **In general.—** — Not later than 1 year after the date of enactment of this subsection, the Secretary shall allow air traffic controllers at towers operated under the Contract Tower Program to use approved advanced equipment and technologies to improve operational situational awareness, including Standard Terminal Automation Replacement System radar displays, Automatic Dependent Surveillance-Broadcast, Flight Data Input/Output, and Automatic Terminal Information System. (2) **Installation and maintenance.—** — Not later than 2 years after the date of enactment of this subsection, the Secretary shall allow airports to— (A) procure a Standard Terminal Automation Replacement System or any equivalent system through the Federal Aviation Administration, and install and maintain such system using Administration services; or (B) purchase a Standard Terminal Automation Replacement System, or any equivalent system, and install and maintain such system using services directly from an original equipment manufacturer. (3) **Requirements.—** — To help facilitate the integration of the equipment and technology described in paragraph (1), the Secretary— (A) shall establish minimum performance and technical standards that ensure the safe use of equipment and technology, including commercial radar displays capable of displaying primary and secondary radar targets, for use by controllers in contract towers to improve situational awareness; (B) shall identify approved vendors for such equipment and technology, to the maximum extent practicable; (C) shall establish, in consultation with contract tower operators, an appropriate training program to periodically train air traffic controllers employed by such operators to ensure proper and efficient integration and use of the situational awareness equipment and technology described in paragraph (1) into contract tower operations; (D) may add Standard Terminal Automation Replacement System equipment or any equivalent system to the minimum level of equipage necessary for Federal contract towers to perform the function of such towers, as applicable; and (E) shall require that any technology, system, or equipment procured pursuant to this subsection be procured using non-Federal funds, except as made available under a grant issued pursuant to 47124(b)(4).11 So in original. Probably should be preceded by “section”. **(g) Liability Insurance.—** (1) **In general.—** — Not later than 18 months after the date of enactment of this subsection, the Secretary shall consult with aviation industry experts, including air traffic control contractors and aviation insurance professionals, to determine adequate limits of liability for the Contract Tower Program. (2) **Interim steps.—** — Not later than 6 months after the date of enactment of this subsection and until the Secretary makes a determination on liability limits under paragraph (1), the Secretary shall require air traffic control contractors to have excess liability insurance (as determined by the Secretary) to ensure continuity of such coverage should a major accident occur. (3) **Briefing.—** — Not later than 24 months after the date of enactment of this subsection, the Secretary shall brief the Committee on Transportation and Infrastructure of the House of Representatives and the Commerce,22 So in original. Probably should be preceded by “Committee on”. Science, and Transportation of the Senate on the findings, conclusions, and actions taken and planned to be taken to carry out this subsection. **(h) Milestones for Design Approval of Remote Towers.—** (1) **In general.—** — Not later than 180 days after the date of enactment of this subsection, the Administrator of the Federal Aviation Administration shall create a program and publish milestones to achieve system design and operational approval for a remote tower system. (2) **Requirements.—** — In carrying out paragraph (1), the Administrator shall— (A) rely on support from the Office of Airports of the Federal Aviation Administration and the Air Traffic Organization of the Federal Aviation Administration, including the Air Traffic Services Service Unit and the Technical Operations Service Unit; (B) consult with relevant stakeholders, as the Administrator determines appropriate; (C) establish requirements for the system design and operational approval of remote towers, including— (i) visual siting processes and requirements for electro-optical sensors; (ii) datalink latency requirements; (iii) visual presentation design requirements for monitors used to display sensor and camera feeds; and (iv) any other wireless telecommunications infrastructure requirements to enable the operation of such towers; (D) use a safety risk management panel process to address any safety issues with respect to a remote tower; (E) if a remote tower is intended to be installed at a non-towered airport, assess the safety benefits of the remote tower against the lack of an existing tower; (F) allow the use of surface surveillance technology, either standalone or integrated into the visual automation platform, as a situational awareness tool; (G) establish protocols for contingency operations and procedures in the event of remote tower technology failures and malfunctions; and (H) support active testing of a remote tower system that has achieved system design approval by the William J. Hughes Technical Center at an airport that has installed remote tower infrastructure to support such system. (3) **System design approval and evaluation process.—** — Not later than December 31, 2024, the Administrator shall expand the system design approval and evaluation process for a digital or remote tower system to not less than 3 airports at which a digital or remote tower will be installed or operated at airports not located at the William J. Hughes Technical Center and using the criteria under section 161 of the FAA Reauthorization Act of 2018 ([49 U.S.C. 47104](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title49-section47104&num=0&edition=prelim) note), to the extent the Administrator has willing technology providers and airports interested in the installation and operation of such towers. (4) **Preservation of existing design approvals.—** — Nothing in this subsection shall be construed to invalidate any system design approval activity carried out by the William J. Hughes Technical Center prior to the date of enactment of this subsection. (5) **Prioritization for remote tower certification.—** — In carrying out the program established under paragraph (1), the Administrator shall prioritize system design and operational approval for a remote tower system at— (A) airports that do not have a permanent air traffic control tower at the time of application; (B) airports that would provide small and rural community air service; or (C) airports that have been newly accepted as of the date of enactment of this subsection into the Contract Tower Program.