[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2115 Enrolled Bill (ENR)]

        H.R.2115

                       One Hundred Eighth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
           the seventh day of January, two thousand and three


                                 An Act


 
 To amend title 49, United States Code, to reauthorize programs for the 
        Federal Aviation Administration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Vision 100--
Century of Aviation Reauthorization Act''.
    (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. Applicability.
Sec. 4. Findings.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

                   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. Federal Aviation Administration operations.
Sec. 104. Funding for aviation programs.
Sec. 105. Agreements for operation of airport facilities.
Sec. 106. Insurance.

                   Subtitle B--Passenger Facility Fees

Sec. 121. Low-emission airport vehicles and ground support equipment.
Sec. 122. Use of fees to pay debt service.
Sec. 123. Streamlining of the passenger facility fee program.
Sec. 124. Financial management of passenger facility fees.

                      Subtitle C--AIP Modifications

Sec. 141. Airfield pavement.
Sec. 142. Replacement of baggage conveyor systems.
Sec. 143. Authority to use certain funds for airport security programs 
          and activities.
Sec. 144. Grant assurances.
Sec. 145. Clarification of allowable project costs.
Sec. 146. Apportionments to primary airports.
Sec. 147. Cargo airports.
Sec. 148. Considerations in making discretionary grants.
Sec. 149. Flexible funding for nonprimary airport apportionments.
Sec. 150. Use of apportioned amounts.
Sec. 151. Increase in apportionment for, and flexibility of, noise 
          compatibility planning programs.
Sec. 152. Pilot program for purchase of airport development rights.
Sec. 153. Military airport program.
Sec. 154. Airport safety data collection.
Sec. 155. Airport privatization pilot program.
Sec. 156. Innovative financing techniques.
Sec. 157. Airport security program.
Sec. 158. Emission credits for air quality projects.
Sec. 159. Low-emission airport vehicles and infrastructure.
Sec. 160. Compatible land use planning and projects by State and local 
          governments.
Sec. 161. Temporary increase in Government share of certain AIP project 
          costs.
Sec. 162. Share of airport project costs.
Sec. 163. Federal share for private ownership of airports.
Sec. 164. Disposition of land acquired for noise compatibility purposes.
Sec. 165. Hangar construction grant assurance.
Sec. 166. Terminal development costs.

                        Subtitle D--Miscellaneous

Sec. 181. Design-build contracting.
Sec. 182. Pilot program for innovative financing of air traffic control 
          equipment.
Sec. 183. Cost sharing of air traffic modernization projects.
Sec. 184. Facilities and equipment reports.
Sec. 185. Civil penalty for permanent closure of an airport without 
          providing sufficient notice.
Sec. 186. Midway Island Airport.
Sec. 187. Intermodal planning.
Sec. 188. Marshall Islands, Micronesia, and Palau.
Sec. 189. Limitation on approval of certain programs.
Sec. 190. Conveyance of airport.

                       TITLE II--FAA ORGANIZATION

                         Subtitle A--FAA Reform

Sec. 201. Management advisory committee members.
Sec. 202. Reorganization of the air traffic services subcommittee.
Sec. 203. Clarification of the responsibilities of the Chief Operating 
          Officer.
Sec. 204. Deputy Administrator.

                        Subtitle B--Miscellaneous

Sec. 221. Controller staffing.
Sec. 222. Whistleblower protection under acquisition management system.
Sec. 223. FAA purchase cards.
Sec. 224. Procurement.
Sec. 225. Definitions.
Sec. 226. Air traffic controller retirement.
Sec. 227. Design organization certificates.
Sec. 228. Judicial review.
Sec. 229. Overflight fees.

                    TITLE III--ENVIRONMENTAL PROCESS

              Subtitle A--Aviation Development Streamlining

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Airport capacity enhancement.
Sec. 304. Aviation project streamlining.
Sec. 305. Elimination of duplicative requirements.
Sec. 306. Construction of certain airport capacity projects.
Sec. 307. Issuance of orders.
Sec. 308. Limitations.
Sec. 309. Relationship to other requirements.

                        Subtitle B--Miscellaneous

Sec. 321. Report on long-term environmental improvements.
Sec. 322. Noise disclosure.
Sec. 323. Overflights of national parks.
Sec. 324. Noise exposure maps.
Sec. 325. Implementation of Chapter 4 noise standards.
Sec. 326. Reduction of noise and emissions from civilian aircraft.
Sec. 327. Special rule for airport in Illinois.

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

                 Subtitle A--Small Community Air Service

Sec. 401. Exemption from hold-in requirements.
Sec. 402. Adjustments to account for significantly increased costs.
Sec. 403. Joint proposals.
Sec. 404. Essential air service authorization.
Sec. 405. Community and regional choice programs.
Sec. 406. Code-sharing pilot program.
Sec. 407. Tracking service.
Sec. 408. EAS local participation program.
Sec. 409. Measurement of highway miles for purposes of determining 
          eligibility of essential air service subsidies.
Sec. 410. Incentive program.
Sec. 411. National Commission on Small Community Air Service.
Sec. 412. Small community air service.

                        Subtitle B--Miscellaneous

Sec. 421. Data on incidents and complaints involving passenger and 
          baggage security screening.
Sec. 422. Delay reduction actions.
Sec. 423. Collaborative decisionmaking pilot program.
Sec. 424. Competition disclosure requirement for large and medium hub 
          airports.
Sec. 425. Slot exemptions at Ronald Reagan Washington National Airport.
Sec. 426. Definition of commuter aircraft.
Sec. 427. Airfares for members of the Armed Forces.
Sec. 428. Air carriers required to honor tickets for suspended service.

                        TITLE V--AVIATION SAFETY

Sec. 501. Counterfeit or fraudulently represented parts violations.
Sec. 502. Runway safety standards.
Sec. 503. Civil penalties.
Sec. 504. Improvement of curriculum standards for aviation maintenance 
          technicians.
Sec. 505. Assessment of wake turbulence research and development 
          program.
Sec. 506. FAA inspector training.
Sec. 507. Air transportation oversight system plan.

                       TITLE VI--AVIATION SECURITY

Sec. 601. Certificate actions in response to a security threat.
Sec. 602. Justification for air defense identification zone.
Sec. 603. Crew training.
Sec. 604. Study of effectiveness of transportation security system.
Sec. 605. Airport security improvement projects.
Sec. 606. Charter security.
Sec. 607. CAPPS2.
Sec. 608. Report on passenger prescreening program.
Sec. 609. Arming cargo pilots against terrorism.
Sec. 610. Removal of cap on TSA staffing level.
Sec. 611. Foreign repair stations.
Sec. 612. Flight training.
Sec. 613. Deployment of screeners at Kenai, Homer, and Valdez, Alaska.

                      TITLE VII--AVIATION RESEARCH

Sec. 701. Authorization of appropriations.
Sec. 702. Federal Aviation Administration Science and Technology 
          Scholarship Program.
Sec. 703. National Aeronautics and Space Administration Science and 
          Technology Scholarship Program.
Sec. 704. Research program to improve airfield pavements.
Sec. 705. Ensuring appropriate standards for airfield pavements.
Sec. 706. Development of analytical tools and certification methods.
Sec. 707. Research on aviation training.
Sec. 708. FAA Center for Excellence for applied research and training in 
          the use of advanced materials in transport aircraft.
Sec. 709. Air Transportation System Joint Planning and Development 
          Office.
Sec. 710. Next generation air transportation senior policy committee.
Sec. 711. Rotorcraft research and development initiative.
Sec. 712. Airport Cooperative Research Program.

                        TITLE VIII--MISCELLANEOUS

Sec. 801. Definitions.
Sec. 802. Report on aviation safety reporting system.
Sec. 803. Anchorage air traffic control.
Sec. 804. Extension of Metropolitan Washington Airports Authority.
Sec. 805. Improvement of aviation information collection.
Sec. 806. Government-financed air transportation.
Sec. 807. Air carrier citizenship.
Sec. 808. United States presence in global air cargo industry.
Sec. 809. Availability of aircraft accident site information.
Sec. 810. Notice concerning aircraft assembly.
Sec. 811. Type certificates.
Sec. 812. Reciprocal airworthiness certification.
Sec. 813. International role of the FAA.
Sec. 814. Flight attendant certification.
Sec. 815. Air quality in aircraft cabins.
Sec. 816. Recommendations concerning travel agents.
Sec. 817. Reimbursement for losses incurred by general aviation 
          entities.
Sec. 818. International air show.
Sec. 819. Report on certain market developments and government policies.
Sec. 820. International air transportation.
Sec. 821. Reimbursement of air carriers for certain screening and 
          related activities.
Sec. 822. Charter airlines.
Sec. 823. General aviation flights at Ronald Reagan Washington National 
          Airport.
Sec. 824. Review of air carrier compensation.
Sec. 825. Noise control plan for certain airports.
Sec. 826. GAO report on airlines' actions to improve finances and on 
          executive compensation.
Sec. 827. Private air carriage in Alaska.
Sec. 828. Report on waivers of preference for buying goods produced in 
          the United States.
Sec. 829. Navigation fees.

    TITLE IX--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
                                AUTHORITY

Sec. 901. Extension of expenditure authority.
Sec. 902. Technical correction to flight segment.

SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or a 
repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of title 49, 
United States Code.

SEC. 3. APPLICABILITY.

    Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall apply only to fiscal years beginning 
after September 30, 2003.

SEC. 4. FINDINGS.

    Congress finds the following:
        (1) The United States has revolutionized the way people travel, 
    developing new technologies and aircraft to move people more 
    efficiently and more safely.
        (2) Past Federal investment in aeronautics research and 
    development has benefited the economy and national security of the 
    United States and the quality of life of its citizens.
        (3) The total impact of civil aviation on the United States 
    economy exceeds $900,000,000,000 annually and accounts for 9 
    percent of the gross national product and 11,000,000 jobs in the 
    national workforce. Civil aviation products and services generate a 
    significant surplus for United States trade accounts, and amount to 
    significant numbers of the Nation's highly skilled, technologically 
    qualified work force.
        (4) Aerospace technologies, products, and services underpin the 
    advanced capabilities of our men and women in uniform and those 
    charged with homeland security.
        (5) Future growth in civil aviation increasingly will be 
    constrained by concerns related to aviation system safety and 
    security, aviation system capabilities, aircraft noise, emissions, 
    and fuel consumption.
        (6) Revitalization and coordination of the United States 
    efforts to maintain its leadership in aviation and aeronautics are 
    critical and must begin now.
        (7) A recent report by the Commission on the Future of the 
    United States Aerospace Industry outlined the scope of the problems 
    confronting the aerospace and aviation industries in the United 
    States and found that--
            (A) aerospace will be at the core of the Nation's 
        leadership and strength throughout the 21st century;
            (B) aerospace will play an integral role in the Nation's 
        economy, security, and mobility; and
            (C) global leadership in aerospace is a national 
        imperative.
        (8) Despite the downturn in the global economy, projections of 
    the Federal Aviation Administration indicate that upwards of 
    1,000,000,000 people will fly annually by 2013. Efforts must begin 
    now to prepare for future growth in the number of airline 
    passengers.
        (9) The United States must increase its investment in research 
    and development to revitalize the aviation and aerospace 
    industries, to create jobs, and to provide educational assistance 
    and training to prepare workers in those industries for the future.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS
                  Subtitle A--Funding of FAA Programs

SEC. 101. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY 
              PLANNING AND PROGRAMS.

    (a) Authorization.--Section 48103 is amended--
        (1) by striking ``September 30, 1998'' and inserting 
    ``September 30, 2003''; and
        (2) by striking paragraphs (1) through (5) and inserting the 
    following:
        ``(1) $3,400,000,000 for fiscal year 2004;
        ``(2) $3,500,000,000 for fiscal year 2005;
        ``(3) $3,600,000,000 for fiscal year 2006; and
        ``(4) $3,700,000,000 for fiscal year 2007.''.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``September 30, 2003'' and inserting ``September 30, 2007''.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

    Section 48101 is amended--
        (1) in subsection (a) by striking paragraphs (1) through (5) 
    and inserting the following:
        ``(1) $3,138,000,000 for fiscal year 2004;
        ``(2) $2,993,000,000 for fiscal year 2005;
        ``(3) $3,053,000,000 for fiscal year 2006; and
        ``(4) $3,110,000,000 for fiscal year 2007.'';
        (2) by striking subsections (b), (d), and (e) and redesignating 
    subsection (c) as subsection (b);
        (3) by inserting after subsection (b) (as so redesignated) the 
    following:
    ``(c) Enhanced Safety and Security for Aircraft Operations in the 
Gulf of Mexico.--Of amounts appropriated under subsection (a), such 
sums as may be necessary for fiscal years 2004 through 2007 may be used 
to expand and improve the safety, efficiency, and security of air 
traffic control, navigation, low altitude communications and 
surveillance, and weather services in the Gulf of Mexico.
    ``(d) Operational Benefits of Wake Vortex Advisory System.--Of 
amounts appropriated under subsection (a), such sums as may be 
necessary for each of fiscal years 2004 through 2007 may be used for 
the development and analysis of wake vortex advisory systems.
    ``(e) Ground-Based Precision Navigational Aids.--Of amounts 
appropriated under subsection (a), such sums as may be necessary for 
each of fiscal years 2004 to 2007 may be used to establish a program 
for the installation of a precision approach aid designed to improve 
aircraft accessibility at mountainous airports with limited land if the 
approach aid is able to provide curved and segmented approach guidance 
for noise abatement purposes and other such approach aids and is 
certified or approved by the Administrator.'';
        (4) in subsection (f)--
            (A) by striking ``for fiscal years beginning after 
        September 30, 2000''; and
            (B) by inserting ``may be used'' after ``necessary''; and
        (5) by adding at the end the following:
    ``(h) Standby Power Efficiency Program.--Of amounts appropriated 
under subsection (a), such sums as may be necessary for each of fiscal 
years 2004 through 2007 may be used by the Secretary of Transportation, 
in cooperation with the Secretary of Energy and, where applicable, the 
Secretary of Defense, to establish a program to improve the efficiency, 
cost effectiveness, and environmental performance of standby power 
systems at Federal Aviation Administration sites, including the 
implementation of fuel cell technology.
    ``(i) Pilot Program To Provide Incentives for Development of New 
Technologies.--Of amounts appropriated under subsection (a), $500,000 
for fiscal year 2004 may be used for the conduct of a pilot program to 
provide operating incentives to users of the airspace for the 
deployment of new technologies, including technologies to facilitate 
expedited flight routing and sequencing of takeoffs and landings.''.

SEC. 103. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

    (a) In General.--Section 106(k)(1) is amended to read as follows:
        ``(1) Salaries, operations, and maintenance.--There is 
    authorized to be appropriated to the Secretary of Transportation 
    for salaries, operations, and maintenance of the Administration--
            ``(A) $7,591,000,000 for fiscal year 2004;
            ``(B) $7,732,000,000 for fiscal year 2005;
            ``(C) $7,889,000,000 for fiscal year 2006; and
            ``(D) $8,064,000,000 for fiscal year 2007.
    Such sums shall remain available until expended.''.
    (b) Authorized Expenditures.--Section 106(k)(2) is amended--
        (1) by striking subparagraphs (A) and (B) and subparagraphs (F) 
    through (I);
        (2) by redesignating subparagraphs (C), (D), and (E) as 
    subparagraphs (A), (B), and (C), respectively;
        (3) in subparagraphs (A), (B), and (C) (as so redesignated) by 
    striking ``fiscal years 2000 through 2003'' and inserting ``fiscal 
    years 2004 through 2007''; and
        (4) by adding after subparagraph (C) (as so redesignated) the 
    following:
            ``(D) Such sums as may be necessary for fiscal years 2004 
        through 2007 for the Center for Management Development of the 
        Federal Aviation Administration to operate training courses and 
        to support associated student travel for both residential and 
        field courses.
            ``(E) Such sums as may be necessary for fiscal years 2004 
        through 2007 to carry out and expand the Air Traffic Control 
        Collegiate Training Initiative.
            ``(F) Such sums as may be necessary for fiscal years 2004 
        through 2007 for the completion of the Alaska aviation safety 
        project with respect to the 3 dimensional mapping of Alaska's 
        main aviation corridors.
            ``(G) Such sums as may be necessary for fiscal years 2004 
        through 2007 to carry out the Aviation Safety Reporting 
        System.''.
    (c) Airline Data and Analysis.--There is authorized to be 
appropriated to the Secretary of Transportation, out of the Airport and 
Airway Trust Fund established by section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502), $3,971,000 for fiscal year 2004, 
$4,045,000 for fiscal year 2005, $4,127,000 for fiscal year 2006, and 
$4,219,000 for fiscal year 2007 to gather aviation data and conduct 
analyses of such data in the Bureau of Transportation Statistics of the 
Department of Transportation.

SEC. 104. FUNDING FOR AVIATION PROGRAMS.

    (a) In General.--Chapter 481 is further amended by adding at the 
end the following:

``Sec. 48114. Funding for aviation programs

    ``(a) Authorization of Appropriations.--
        ``(1) Airport and airway trust fund guarantee.--
            ``(A) In general.--The total budget resources made 
        available from the Airport and Airway Trust Fund each fiscal 
        year through fiscal year 2007 pursuant to sections 48101, 
        48102, 48103, and 106(k) of title 49, United States Code, shall 
        be equal to the level of receipts plus interest credited to the 
        Airport and Airway Trust Fund for that fiscal year. Such 
        amounts may be used only for aviation investment programs 
        listed in subsection (b).
            ``(B) Guarantee.--No funds may be appropriated or limited 
        for aviation investment programs listed in subsection (b) 
        unless the amount described in subparagraph (A) has been 
        provided.
        ``(2) Additional authorizations of appropriations from the 
    general fund.--In any fiscal year through fiscal year 2007, if the 
    amount described in paragraph (1) is appropriated, there is further 
    authorized to be appropriated from the general fund of the Treasury 
    such sums as may be necessary for the Federal Aviation 
    Administration Operations account.
    ``(b) Definitions.--In this section, the following definitions 
apply:
        ``(1) Total budget resources.--The term `total budget 
    resources' means the total amount made available from the Airport 
    and Airway Trust Fund for the sum of obligation limitations and 
    budget authority made available for a fiscal year for the following 
    budget accounts that are subject to the obligation limitation on 
    contract authority provided in this title and for which 
    appropriations are provided pursuant to authorizations contained in 
    this title:
            ``(A) 69-8106-0-7-402 (Grants in Aid for Airports).
            ``(B) 69-8107-0-7-402 (Facilities and Equipment).
            ``(C) 69-8108-0-7-402 (Research and Development).
            ``(D) 69-8104-0-7-402 (Trust Fund Share of Operations).
        ``(2) Level of receipts plus interest.--The term `level of 
    receipts plus interest' means the level of excise taxes and 
    interest credited to the Airport and Airway Trust Fund under 
    section 9502 of the Internal Revenue Code of 1986 for a fiscal year 
    as set forth in the President's budget baseline projection as 
    defined in section 257 of the Balanced Budget and Emergency Deficit 
    Control Act of 1985 (Public Law 99-177) (Treasury identification 
    code 20-8103-0-7-402) for that fiscal year submitted pursuant to 
    section 1105 of title 31, United States Code.
    ``(c) Enforcement of Guarantees.--
        ``(1) Total airport and airway trust fund funding.--It shall 
    not be in order in the House of Representatives or the Senate to 
    consider any bill, joint resolution, amendment, motion, or 
    conference report that would cause total budget resources in a 
    fiscal year for aviation investment programs described in 
    subsection (b) to be less than the amount required by subsection 
    (a)(1)(A) for such fiscal year.
        ``(2) Capital priority.--It shall not be in order in the House 
    of Representatives or the Senate to consider any bill, joint 
    resolution, amendment, motion, or conference report that provides 
    an appropriation (or any amendment thereto) for any fiscal year 
    through fiscal year 2007 for Research and Development or Operations 
    if the sum of the obligation limitation for Grants-in-Aid for 
    Airports and the appropriation for Facilities and Equipment for 
    such fiscal year is below the sum of the authorized levels for 
    Grants-in-Aid for Airports and for Facilities and Equipment for 
    such fiscal year.''.
    (b) Conforming Amendment.--The analysis for chapter 481 is amended 
by adding at the end the following:

``48114. Funding for aviation programs.''.

    (c) Repeal.--Section 106 of the Wendell H. Ford Aviation Investment 
and Reform Act for the 21st Century (49 U.S.C. 48101 note) and the item 
relating to such section in the table of contenets in section 1(b) of 
such Act are repealed.

SEC. 105. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

    Section 47124 is amended--
        (1) by striking subsection (a) and inserting the following:
    ``(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.'';
        (2) by striking subsection (b)(2) and inserting the following:
    ``(2) The Secretary may make a contract with a qualified entity (as 
determined by the Secretary) or, on a sole source basis, with a State 
or a political subdivision of a State to allow the entity, State, or 
subdivision to operate an airport traffic control tower classified as a 
level I (Visual Flight Rules) tower if the Secretary decides that the 
entity, State, or subdivision has the capability to comply with the 
requirements of this paragraph. The contract shall require that the 
entity, State, or subdivision comply with applicable safety regulations 
in operating the facility and with applicable competition requirements 
in making a subcontract to perform work to carry out the contract.'';
        (3) in subsection (b)(3)--
            (A) in the paragraph heading by striking ``pilot'';
            (B) by striking ``pilot'' each place it appears; and
            (C) in subparagraph (E) by striking ``$6,000,000 per fiscal 
        year'' and inserting ``$6,500,000 for fiscal 2004, $7,000,000 
        for fiscal year 2005, $7,500,000 for fiscal year 2006, and 
        $8,000,000 for fiscal year 2007''; and
        (4) in subsection (b)(4)(C) by striking ``$1,100,000.'' and 
    inserting ``$1,500,000.''.

SEC. 106. INSURANCE.

    (a) Aircraft Manufacturers.--
        (1) In general.--Section 44302 is amended by adding at the end 
    the following:
    ``(g) Aircraft Manufacturers.--
        ``(1) In general.--The Secretary may provide to an aircraft 
    manufacturer insurance for loss or damage resulting from operation 
    of an aircraft by an air carrier and involving war or terrorism.
        ``(2) Amount.--Insurance provided by the Secretary under this 
    subsection shall be for loss or damage in excess of the greater of 
    the amount of available primary insurance or $50,000,000.
        ``(3) Terms and conditions.--Insurance provided by the 
    Secretary under this subsection shall be subject to the terms and 
    conditions set forth in this chapter and such other terms and 
    conditions as the Secretary may prescribe.''.
        (2) Definition of aircraft manufacturer.--Section 44301 is 
    amended--
            (A) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (B) by inserting before paragraph (2) (as so redesignated) 
        the following:
        ``(1) `aircraft manufacturer' means any company or other 
    business entity, the majority ownership and control of which is by 
    United States citizens, that manufactures aircraft or aircraft 
    engines.''.
        (3) Coverage.--Section 44303(a) is amended--
            (A) in the subsection heading by striking ``In general'' 
        and inserting ``In General''; and
            (B) by adding at the end the following:
        ``(6) loss or damage of an aircraft manufacturer resulting from 
    operation of an aircraft by an air carrier and involving war or 
    terrorism.''.
    (b) Aircraft Manufacturer Liability for Third-Party Claims Arising 
Out of Acts of Terrorism.--Section 44303(b) is amended by adding at the 
end the following: ``The Secretary may extend the provisions of this 
subsection to an aircraft manufacturer (as defined in section 44301) of 
the aircraft of the air carrier involved.''.
    (c) Premiums and Limitations on Coverage and Claims.--Section 
44306(b) is amended by striking ``air'' and inserting ``insurance''.
    (d) Ending Effective Date.--Section 44310 is amended by striking 
``December 31, 2004'' and inserting ``March 30, 2008''.
    (e) Technical Correction.--Effective November 19, 2001, section 
124(b) of the Aviation and Transportation Security Act (115 Stat. 631) 
is amended by striking ``to carry out foreign policy'' and inserting 
``to carry out the foreign policy''.

                  Subtitle B--Passenger Facility Fees

SEC. 121. LOW-EMISSION AIRPORT VEHICLES AND GROUND SUPPORT EQUIPMENT.

    (a) In General.--Section 40117(a)(3) is amended by inserting at the 
end the following:
            ``(G) A project for converting vehicles and ground support 
        equipment used at a commercial service airport to low-emission 
        technology (as defined in section 47102) or to use cleaner 
        burning conventional fuels, retrofitting of any such vehicles 
        or equipment that are powered by a diesel or gasoline engine 
        with emission control technologies certified or verified by the 
        Environmental Protection Agency to reduce emissions, or 
        acquiring for use at a commercial service airport vehicles and 
        ground support equipment that include low-emission technology 
        or use cleaner burning fuels if the airport is located in an 
        air quality nonattainment area (as defined in section 171(2) of 
        the Clean Air Act (42 U.S.C. 7501(2))) or a maintenance area 
        referred to in section 175A of such Act (42 U.S.C. 7505a) and 
        if such project will result in an airport receiving appropriate 
        emission credits as described in section 47139.''.
    (b) Maximum Cost for Certain Low-Emission Technology Projects.--
Section 40117(b) is amended by adding at the end the following:
        ``(5) Maximum cost for certain low-emission technology 
    projects.--The maximum cost that may be financed by imposition of a 
    passenger facility fee under this section for a project described 
    in subsection (a)(3)(G) with respect to a vehicle or ground support 
    equipment may not exceed the incremental amount of the project cost 
    that is greater than the cost of acquiring a vehicle or equipment 
    that is not low-emission and would be used for the same purpose, or 
    the cost of low-emission retrofitting, as determined by the 
    Secretary.''.
    (c) Ground Support Equipment Defined.--Section 40117(a) is 
amended--
        (1) by redesignating paragraphs (4) and (5) as paragraphs (5) 
    and (6), respectively; and
        (2) by inserting after paragraph (3) the following:
        ``(4) Ground support equipment.--The term `ground support 
    equipment' means service and maintenance equipment used at an 
    airport to support aeronautical operations and related 
    activities.''.
    (d) Guidance.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, shall issue 
guidance determining eligibility of projects, and how benefits to air 
quality must be demonstrated, under the amendments made by this 
section.

SEC. 122. USE OF FEES TO PAY DEBT SERVICE.

    Sections 40117(b) is further amended by adding at the end the 
following:
        ``(6) Debt service for certain projects.--In addition to the 
    uses specified in paragraphs (1) and (4), the Secretary may 
    authorize a passenger facility fee imposed under paragraph (1) or 
    (4) to be used for making payments for debt service on indebtedness 
    incurred to carry out at the airport a project that is not an 
    eligible airport-related project if the Secretary determines that 
    such use is necessary due to the financial need of the airport.''.

SEC. 123. STREAMLINING OF THE PASSENGER FACILITY FEE PROGRAM.

    (a) Application Requirements.--Section 40117(c) is amended--
        (1) by adding at the end of paragraph (2) the following:
        ``(E) The agency must include in its application or notice 
    submitted under subparagraph (A) copies of all certifications of 
    agreement or disagreement received under subparagraph (D).
        ``(F) For the purpose of this section, an eligible agency 
    providing notice and an opportunity for consultation to an air 
    carrier or foreign air carrier is deemed to have satisfied the 
    requirements of this paragraph if the eligible agency limits such 
    notices and consultations to air carriers and foreign air carriers 
    that have a significant business interest at the airport. In the 
    subparagraph, the term `significant business interest' means an air 
    carrier or foreign air carrier that had no less than 1.0 percent of 
    passenger boardings at the airport in the prior calendar year, had 
    at least 25,000 passenger boardings at the airport in the prior 
    calendar year, or provides scheduled service at the airport.'';
        (2) by redesignating paragraph (3) as paragraph (4);
        (3) by inserting after paragraph (2) the following:
    ``(3) Before submitting an application, the eligible agency must 
provide reasonable notice and an opportunity for public comment. The 
Secretary shall prescribe regulations that define reasonable notice and 
provide for at least the following under this paragraph:
        ``(A) A requirement that the eligible agency provide public 
    notice of intent to collect a passenger facility fee so as to 
    inform those interested persons and agencies that may be affected. 
    The public notice may include--
            ``(i) publication in local newspapers of general 
        circulation;
            ``(ii) publication in other local media; and
            ``(iii) posting the notice on the agency's Internet 
        website.
        ``(B) A requirement for submission of public comments no sooner 
    than 30 days, and no later than 45 days, after the date of the 
    publication of the notice.
        ``(C) A requirement that the agency include in its application 
    or notice submitted under subparagraph (A) copies of all comments 
    received under subparagraph (B).''; and
        (4) in the first sentence of paragraph (4) (as redesignated by 
    paragraph (2) of this subsection) by striking ``shall'' and 
    inserting ``may''.
    (b) Pilot Program for Passenger Facility Fee Authorizations at 
Nonhub Airports.--Section 40117 is amended by adding at the end the 
following:
    ``(l) Pilot Program for Passenger Facility Fee Authorizations at 
Nonhub Airports.--
        ``(1) In general.--The Secretary shall establish a pilot 
    program to test alternative procedures for authorizing eligible 
    agencies for nonhub airports to impose passenger facility fees. An 
    eligible agency may impose in accordance with the provisions of 
    this subsection a passenger facility fee under this section. For 
    purposes of the pilot program, the procedures in this subsection 
    shall apply instead of the procedures otherwise provided in this 
    section.
        ``(2) Notice and opportunity for consultation.--The eligible 
    agency must provide reasonable notice and an opportunity for 
    consultation to air carriers and foreign air carriers in accordance 
    with subsection (c)(2) and must provide reasonable notice and 
    opportunity for public comment in accordance with subsection 
    (c)(3).
        ``(3) Notice of intention.--The eligible agency must submit to 
    the Secretary a notice of intention to impose a passenger facility 
    fee under this subsection. The notice shall include--
            ``(A) information that the Secretary may require by 
        regulation on each project for which authority to impose a 
        passenger facility fee is sought;
            ``(B) the amount of revenue from passenger facility fees 
        that is proposed to be collected for each project; and
            ``(C) the level of the passenger facility fee that is 
        proposed.
        ``(4) Acknowledgement of receipt and indication of objection.--
    The Secretary shall acknowledge receipt of the notice and indicate 
    any objection to the imposition of a passenger facility fee under 
    this subsection for any project identified in the notice within 30 
    days after receipt of the eligible agency's notice.
        ``(5) Authority to impose fee.--Unless the Secretary objects 
    within 30 days after receipt of the eligible agency's notice, the 
    eligible agency is authorized to impose a passenger facility fee in 
    accordance with the terms of its notice under this subsection.
        ``(6) Regulations.--Not later than 180 days after the date of 
    enactment of this subsection, the Secretary shall propose such 
    regulations as may be necessary to carry out this subsection.
        ``(7) Sunset.--This subsection shall cease to be effective 
    beginning on the date that is 3 years after the date of issuance of 
    regulations to carry out this subsection.
        ``(8) Acknowledgement not an order.--An acknowledgement issued 
    under paragraph (4) shall not be considered an order issued by the 
    Secretary for purposes of section 46110.''.
    (c) Clarification of Applicability of PFC's to Military Charters.--
Section 40117(e)(2) is amended--
        (1) by striking the period at the end of subparagraph (C) and 
    inserting a semicolon;
        (2) by striking ``and'' at the end of subparagraph (D);
        (3) by striking the period at the end of subparagraph (E) and 
    inserting ``; and''; and
        (4) by adding after subparagraph (E) the following:
        ``(F) enplaning at an airport if the passenger did not pay for 
    the air transportation which resulted in such enplanement due to 
    charter arrangements and payment by the Department of Defense.''.
    (d) Technical Amendments.--Section 40117(a)(3)(C) is amended--
        (1) by striking ``for costs'' and inserting ``A project for 
    costs''; and
        (2) by striking the semicolon and inserting a period.
    (e) Eligibility of Airport Ground Access Transportation Projects.--
Not later than 60 days after the enactment of this Act, the 
Administrator of the Federal Aviation Administration shall publish in 
the Federal Register the current policy of the Administration, 
consistent with current law, with respect to the eligibility of airport 
ground access transportation projects for the use of passenger facility 
fees under section 40117 of title 49, United States Code.

SEC. 124. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES.

    Section 40117 is further amended by adding at the end the 
following:
    ``(m) Financial Management of Fees.--
        ``(1) Handling of fees.--A covered air carrier shall segregate 
    in a separate account passenger facility revenue equal to the 
    average monthly liability for fees collected under this section by 
    such carrier or any of its agents for the benefit of the eligible 
    agencies entitled to such revenue.
        ``(2) Trust fund status.--If a covered air carrier or its agent 
    fails to segregate passenger facility revenue in violation of the 
    subsection, the trust fund status of such revenue shall not be 
    defeated by an inability of any party to identify and trace the 
    precise funds in the accounts of the air carrier.
        ``(3) Prohibition.--A covered air carrier and its agents may 
    not grant to any third party any security or other interest in 
    passenger facility revenue.
        ``(4) Compensation to eligible entities.--A covered air carrier 
    that fails to comply with any requirement of this subsection, or 
    otherwise unnecessarily causes an eligible entity to expend funds, 
    through litigation or otherwise, to recover or retain payment of 
    passenger facility revenue to which the eligible entity is 
    otherwise entitled shall be required to compensate the eligible 
    agency for the costs so incurred.
        ``(5) Interest on amounts.--A covered air carrier that collects 
    passenger facility fees is entitled to receive the interest on 
    passenger facility fee accounts if the accounts are established and 
    maintained in compliance with this subsection.
        ``(6) Existing regulations.--The provisions of section 158.49 
    of title 14, Code of Federal Regulations, that permit the 
    commingling of passenger facility fees with other air carrier 
    revenue shall not apply to a covered air carrier.
        ``(7) Covered air carrier defined.--In this section, the term 
    `covered air carrier' means an air carrier that files for chapter 7 
    or chapter 11 of title 11 bankruptcy protection, or has an 
    involuntary chapter 7 of title 11 bankruptcy proceeding commenced 
    against it, after the date of enactment of this subsection.''.

                     Subtitle C--AIP Modifications

SEC. 141. AIRFIELD PAVEMENT.

    Section 47102(3)(H) is amended by inserting ``nonhub airports and'' 
before ``airports that are not primary airports''.

SEC. 142. REPLACEMENT OF BAGGAGE CONVEYOR SYSTEMS.

    Section 47102(3)(B)(x) is amended by striking the period at the end 
and inserting the following: ``; except that such activities shall be 
eligible for funding under this subchapter only using amounts 
apportioned under section 47114.''.

SEC. 143. AUTHORITY TO USE CERTAIN FUNDS FOR AIRPORT SECURITY PROGRAMS 
              AND ACTIVITIES.

    Section 308 of the Federal Aviation Reauthorization Act of 1996 (49 
U.S.C. 44901 note; 110 Stat. 3253), and the item relating to such 
section in the table of contents contained in section 1(b) of that Act, 
are repealed.

SEC. 144. GRANT ASSURANCES.

    (a) Statute of Limitations..--Section 47107(l)(5)(A) is amended by 
inserting ``or any other governmental entity'' after ``sponsor''.
    (b) Audit Certification.--Section 47107(m) is amended--
        (1) in paragraph (1) by striking ``promulgate regulations 
    that'' and inserting ``include a provision in the compliance 
    supplement provisions to'';
        (2) in paragraph (1) by striking ``and opinion of the review''; 
    and
        (3) by striking paragraph (3).

SEC. 145. CLARIFICATION OF ALLOWABLE PROJECT COSTS.

    Section 47110(b)(1) is amended by inserting before the semicolon at 
the end ``and any cost of moving a Federal facility impeding the 
project if the rebuilt facility is of an equivalent size and type''.

SEC. 146. APPORTIONMENTS TO PRIMARY AIRPORTS.

    (a) In General.--Section 47114(c)(1) is amended by adding at the 
end the following:
            ``(F) Special rule for fiscal years 2004 and 2005.--
        Notwithstanding subparagraph (A) and the absence of scheduled 
        passenger aircraft service at an airport, the Secretary may 
        apportion in fiscal years 2004 and 2005 to the sponsor of the 
        airport an amount equal to the amount apportioned to that 
        sponsor in fiscal year 2002 or 2003, whichever amount is 
        greater, if the Secretary finds that--
                ``(i) the passenger boardings at the airport were below 
            10,000 in calendar year 2002 or 2003;
                ``(ii) the airport had at least 10,000 passenger 
            boardings and scheduled passenger aircraft service in 
            either calendar year 2000 or 2001; and
                ``(iii) the reason that passenger boardings described 
            in clause (i) were below 10,000 was the decrease in 
            passengers following the terrorist attacks of September 11, 
            2001.''.
    (b) Special Rule for Transitioning Airports.--Section 47114(f)(3) 
is amended--
        (1) in the paragraph heading by striking ``airorts'' and 
    inserting ``airports''; and
        (2) in subparagraph (B) by striking ``fiscal years 2000 through 
    2003'' and inserting ``fiscal year 2004''.

SEC. 147. CARGO AIRPORTS.

    Section 47114(c)(2) is amended--
        (1) in the paragraph heading by striking ``only''; and
        (2) in subparagraph (A) by striking ``3 percent'' and inserting 
    ``3.5 percent''.

SEC. 148. CONSIDERATIONS IN MAKING DISCRETIONARY GRANTS.

    Section 47115(d) is amended to read as follows:
    ``(d) Considerations.--
        ``(1) For capacity enhancement projects.--In selecting a 
    project for a grant to preserve and improve capacity funded in 
    whole or in part from the fund, the Secretary shall consider--
            ``(A) the effect that the project will have on overall 
        national transportation system capacity;
            ``(B) the benefit and cost of the project, including, in 
        the case of a project at a reliever airport, the number of 
        operations projected to be diverted from a primary airport to 
        the reliever airport as a result of the project, as well as the 
        cost savings projected to be realized by users of the local 
        airport system;
            ``(C) the financial commitment from non-United States 
        Government sources to preserve or improve airport capacity;
            ``(D) the airport improvement priorities of the States to 
        the extent such priorities are not in conflict with 
        subparagraphs (A) and (B);
            ``(E) the projected growth in the number of passengers or 
        aircraft that will be using the airport at which the project 
        will be carried out; and
            ``(F) the ability of the project to foster United States 
        competitiveness in securing global air cargo activity at a 
        United States airport.
        ``(2) For all projects.--In selecting a project for a grant 
    under this section, the Secretary shall consider among other 
    factors whether--
            ``(A) funding has been provided for all other projects 
        qualifying for funding during the fiscal year under this 
        chapter that have attained a higher score under the numerical 
        priority system employed by the Secretary in administering the 
        fund; and
            ``(B) the sponsor will be able to commence the work 
        identified in the project application in the fiscal year in 
        which the grant is made or within 6 months after the grant is 
        made, whichever is later.''.

SEC. 149. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

    (a) Project Grant Agreements.--Section 47108(a) is amended by 
inserting ``or 47114(d)(3)(A)'' after ``under section 47114(c)''.
    (b) Allowable Project Costs.--Section 47110 is amended--
        (1) in subsection (b)(2)(C) by striking ``of this title'' and 
    inserting ``or section 47114(d)(3)(A)'';
        (2) in subsection (g)--
            (A) by inserting ``or section 47114(d)(3)(A)'' after ``of 
        section 47114(c)''; and
            (B) by striking ``of project'' and inserting ``of the 
        project''; and
        (3) by adding at the end the following:
    ``(h) Nonprimary Airports.--The Secretary may decide that the costs 
of revenue producing aeronautical support facilities, including fuel 
farms and hangars, are allowable for an airport development project at 
a nonprimary airport if the Government's share of such costs is paid 
only with funds apportioned to the airport sponsor under section 
47114(d)(3)(A) and if the Secretary determines that the sponsor has 
made adequate provision for financing airside needs of the airport.''.
    (c) Waiver.--Section 47117(c)(2) is amended to read as follows:
        ``(2) Waiver.--A sponsor of an airport may make an agreement 
    with the Secretary of Transportation waiving the sponsor's claim to 
    any part of the amount apportioned for the airport under sections 
    47114(c) and 47114(d)(3)(A) if the Secretary agrees to make the 
    waived amount available for a grant for another public-use airport 
    in the same State or geographical area as the airport, as 
    determined by the Secretary.''.
    (d) Terminal Development Costs.--Section 47119(b) is amended--
        (1) by striking ``or'' at the end of paragraph (3);
        (2) by striking the period at the end of paragraph (4) and 
    inserting ``; or''; and
        (3) by adding at the end the following:
        ``(5) to a sponsor of a nonprimary airport, any part of amounts 
    apportioned to the sponsor for the fiscal year under section 
    47114(d)(3)(A) for project costs allowable under section 
    47110(d).''.

SEC. 150. USE OF APPORTIONED AMOUNTS.

    The first sentence of section 47117(b) is amended by striking 
``primary airport'' and all that follows through ``calendar year'' and 
inserting ``nonhub airport or any airport that is not a commercial 
service airport''.

SEC. 151. INCREASE IN APPORTIONMENT FOR, AND FLEXIBILITY OF, NOISE 
              COMPATIBILITY PLANNING PROGRAMS.

    Section 47117(e)(1)(A) is amended--
        (1) by striking ``At least 34 percent'' and inserting ``At 
    least 35 percent'';
        (2) by striking ``of this title and'' and inserting a comma;
        (3) by striking ``of this title.'' and inserting ``, for noise 
    mitigation projects approved in an environmental record of decision 
    for an airport development project under this title, for compatible 
    land use planning and projects carried out by State and local 
    governments under section 47141, and for airport development 
    described in section 47102(3)(F), 47102(3)(K), or 47102(3)(L) to 
    comply with the Clean Air Act (42 U.S.C. 7401 et seq.).''; and
        (4) by striking ``34 percent requirement'' and inserting ``35 
    percent requirement''.

SEC. 152. PILOT PROGRAM FOR PURCHASE OF AIRPORT DEVELOPMENT RIGHTS.

    (a) In General.--Subchapter I of chapter 471 is amended by adding 
at the end the following:

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

    ``(a) In General.--The Secretary of Transportation shall establish 
a pilot program to support the purchase, by a State or political 
subdivision of a State, of development rights associated with, or 
directly affecting the use of, privately owned public use airports 
located in that State. Under the program, the Secretary may make a 
grant to a State or political subdivision of a State from funds 
apportioned under section 47114 for the purchase of such rights.
    ``(b) Grant Requirements.--
        ``(1) In general.--The Secretary may not make a grant under 
    subsection (a) unless the grant is made--
            ``(A) to enable the State or political subdivision to 
        purchase development rights in order to ensure that the airport 
        property will continue to be available for use as a public 
        airport; and
            ``(B) subject to a requirement that the State or political 
        subdivision acquire an easement or other appropriate covenant 
        requiring that the airport shall remain a public use airport in 
        perpetuity.
        ``(2) Matching requirement.--The amount of a grant under the 
    program may not exceed 90 percent of the costs of acquiring the 
    development rights.
    ``(c) Grant Standards.--The Secretary shall prescribe standards for 
grants under subsection (a), including--
        ``(1) grant application and approval procedures; and
        ``(2) requirements for the content of the instrument recording 
    the purchase of the development rights.
    ``(d) Release of Purchased Rights and Covenant.--Any development 
rights purchased under the program shall remain the property of the 
State or political subdivision unless the Secretary approves the 
transfer or disposal of the development rights after making a 
determination that the transfer or disposal of that right is in the 
public interest.
    ``(e) Limitation.--The Secretary may not make a grant under the 
pilot program for the purchase of development rights at more than 10 
airports.''.
    (b) Conforming Amendment.--The analysis for chapter 471 is amended 
by inserting after the item relating to section 47137 the following:

``47138. Pilot program for purchase of airport development rights.''.

SEC. 153. MILITARY AIRPORT PROGRAM.

    Section 47118 is amended--
        (1) in subsection (e) by striking ``Not more than $7,000,000 
    for each airport from amounts the Secretary distributes under 
    section 47115 of this title for a fiscal year is available'' and 
    inserting ``From amounts the Secretary distributes to an airport 
    under section 47115, $10,000,000 for each of fiscal years 2004 and 
    2005, and $7,000,000 for each fiscal year thereafter, is 
    available'';
        (2) in subsection (f) by striking ``Not more than a total of 
    $7,000,000 for each airport from amounts the Secretary distributes 
    under section 47115 of this title for fiscal years beginning after 
    September 30, 1992, is available'' and inserting the following:
        ``(1) Construction.--From amounts the Secretary distributes to 
    an airport under section 47115, $10,000,000 for each of fiscal 
    years 2004 and 2005, and $7,000,000 for each fiscal year 
    thereafter, is available''; and
        (3) by adding at the end of subsection (f) the following:
        ``(2) Reimbursement.--Upon approval of the Secretary, the 
    sponsor of a current or former military airport the Secretary 
    designates under this section may use an amount apportioned under 
    section 47114, or made available under section 47115 or 
    47117(e)(1)(B), to the airport for reimbursement of costs incurred 
    by the airport in fiscal years 2003 and 2004 for construction, 
    improvement, or repair described in paragraph (1).''.

SEC. 154. AIRPORT SAFETY DATA COLLECTION.

    Section 47130 is amended to read as follows:

``Sec. 47130. Airport safety data collection

    ``Notwithstanding any other provision of law, the Administrator of 
the Federal Aviation Administration may award a contract, using sole 
source or limited source authority, or enter into a cooperative 
agreement with, or provide a grant from amounts made available under 
section 48103 to, a private company or entity for the collection of 
airport safety data. In the event that a grant is provided under this 
section, the United States Government's share of the cost of the data 
collection shall be 100 percent.''.

SEC. 155. AIRPORT PRIVATIZATION PILOT PROGRAM.

    (a) In General.--Section 47134(b)(1) is amended--
        (1) in subparagraph (A) by striking clauses (i) and (ii) and 
    inserting the following:
                ``(i) in the case of a primary airport, by at least 65 
            percent of the scheduled air carriers serving the airport 
            and by scheduled and nonscheduled air carriers whose 
            aircraft landing at the airport during the preceding 
            calendar year, had a total landed weight during the 
            preceding calendar year of at least 65 percent of the total 
            landed weight of all aircraft landing at the airport during 
            such year; or
                ``(ii) in the case of a nonprimary airport, by the 
            Secretary after the airport has consulted with at least 65 
            percent of the owners of aircraft based at that airport, as 
            determined by the Secretary.'';
        (2) by redesignating subparagraph (B) as subparagraph (C); and
        (3) by inserting after subparagraph (A) the following:
            ``(B) Objection to exemption.--An air carrier shall be 
        deemed to have approved a sponsor's application for an 
        exemption under subparagraph (A) unless the air carrier has 
        submitted an objection, in writing, to the sponsor within 60 
        days of the filing of the sponsor's application with the 
        Secretary, or within 60 days of the service of the application 
        upon that air carrier, whichever is later.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
not affect any application submitted before the date of enactment of 
this Act.

SEC. 156. INNOVATIVE FINANCING TECHNIQUES.

    The first sentence of section 47135(a) is amended by inserting 
after ``approve'' the following: ``, after the date of enactment of the 
Vision 100--Century of Aviation Reauthorization Act,''.

SEC. 157. AIRPORT SECURITY PROGRAM.

    Section 47137 is amended--
        (1) by redesignating subsections (e) and (f) as subsections (f) 
    and (g), respectively; and
        (2) by inserting after subsection (d) the following:
    ``(e) Administration.--The Secretary, in cooperation with the 
Secretary of Homeland Security, shall administer the program authorized 
by this section.''.

SEC. 158. EMISSION CREDITS FOR AIR QUALITY PROJECTS.

    (a) Emissions Credit.--Subchapter I of chapter 471 is further 
amended by adding at the end the following:

``Sec. 47139. Emission credits for air quality projects

    ``(a) In General.--The Administrator of the Environmental 
Protection Agency, in consultation with the Secretary of 
Transportation, shall issue guidance on how to ensure that airport 
sponsors receive appropriate emission reduction credits for carrying 
out projects described in sections 40117(a)(3)(G), 47102(3)(F), 
47102(3)(K), and 47102(3)(L). Such guidance shall include, at a 
minimum, the following conditions:
        ``(1) The provision of credits is consistent with the Clean Air 
    Act (42 U.S.C. 7402 et seq.).
        ``(2) Credits generated by the emissions reductions are kept by 
    the airport sponsor and may only be used for purposes of any 
    current or future general conformity determination under the Clean 
    Air Act or as offsets under the Environmental Protection Agency's 
    new source review program for projects on the airport or associated 
    with the airport.
        ``(3) Credits are calculated and provided to airports on a 
    consistent basis nationwide.
        ``(4) Credits are provided to airport sponsors in a timely 
    manner.
        ``(5) The establishment of a method to assure the Secretary 
    that, for any specific airport project for which funding is being 
    requested, the appropriate credits will be granted.
    ``(b) Assurance of Receipt of Credits.--As a condition for making a 
grant for a project described in section 47102(3)(F), 47102(3)(K), 
47102(3)(L), or 47140 or as a condition for granting approval to 
collect or use a passenger facility fee for a project described in 
section 40117(a)(3)(G), 47103(3)(F), 47102(3)(K), 47102(3)(L), or 
47140, the Secretary must receive assurance from the State in which the 
project is located, or from the Administrator of the Environmental 
Protection Agency where there is a Federal implementation plan, that 
the airport sponsor will receive appropriate emission credits in 
accordance with the conditions of this section.
    ``(c) Previously Approved Projects.--The Administrator of the 
Environmental Protection Agency, in consultation with the Secretary, 
shall determine how to provide appropriate emissions credits to airport 
projects previously approved under section 47136 consistent with the 
guidance and conditions specified in subsection (a).
    ``(d) State Authority Under CAA.--Nothing in this section shall be 
construed as overriding existing State law or regulation pursuant to 
section 116 of the Clean Air Act (42 U.S.C. 7416).''.
    (b) Conforming Amendment.--The analysis for chapter 471 is further 
amended by inserting after the item relating to section 47138 the 
following:
``47139. Emission credits for air quality projects.''.

SEC. 159. LOW-EMISSION AIRPORT VEHICLES AND INFRASTRUCTURE.

    (a) Airport Ground Support Equipment Emissions Retrofit Pilot 
Program.--
        (1) In general.--Subchapter I of chapter 471 is further amended 
    by adding at the end the following:

``Sec. 47140. Airport ground support equipment emissions retrofit pilot 
            program

    ``(a) In General.--The Secretary of Transportation shall carry out 
a pilot program at not more than 10 commercial service airports under 
which the sponsors of such airports may use an amount made available 
under section 48103 to retrofit existing eligible airport ground 
support equipment that burns conventional fuels to achieve lower 
emissions utilizing emission control technologies certified or verified 
by the Environmental Protection Agency.
    ``(b) Location in Air Quality Nonattainment or Maintenance Areas.--
A commercial service airport shall be eligible for participation in the 
pilot program only if the airport is located in an air quality 
nonattainment area (as defined in section 171(2) of the Clean Air Act 
(42 U.S.C. 7501(2))) or a maintenance area referred to in section 175A 
of such Act (42 U.S.C. 7505a).
    ``(c) Selection Criteria.--In selecting from among applicants for 
participation in the pilot 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 pilot program.
    ``(d) Maximum Amount.--Not more than $500,000 may be expended under 
the pilot program at any single commercial service airport.
    ``(e) Guidelines.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency, shall establish 
guidelines regarding the types of retrofit projects eligible under the 
pilot program by considering remaining equipment useful life, amounts 
of emission reduction in relation to the cost of projects, and other 
factors necessary to carry out this section. The Secretary may give 
priority to ground support equipment owned by the airport and used for 
airport purposes.
    ``(f) Eligible Equipment Defined.--In this section, the term 
`eligible equipment' means ground service or maintenance equipment that 
is located at the airport, is used to support aeronautical and related 
activities at the airport, and will remain in operation at the airport 
for the life or useful life of the equipment, whichever is earlier.''.
        (2) Conforming amendment.--The analysis for chapter 471 is 
    further amended by inserting after the item relating to section 
    47139 the following:
``47140. Airport ground support equipment emissions retrofit pilot 
          program.''.
    (b) Activities Added to Definition of Airport Development.--
        (1) In general.--Section 47102(3) is amended--
            (A) by striking subparagraphs (J), (K), and (L) and 
        redesignating subparagraph (M) as subparagraph (J); and
            (B) by adding at the end the following:
            ``(K) work necessary to construct or modify airport 
        facilities to provide low-emission fuel systems, gate 
        electrification, and other related air quality improvements at 
        a commercial service airport if the airport is located in an 
        air quality nonattainment or maintenance area (as defined in 
        sections 171(2) and 175A of the Clean Air Act (42 U.S.C. 
        7501(2); 7505a) and if such project will result in an airport 
        receiving appropriate emission credits, as described in section 
        47139.
            ``(L) a project for the acquisition or conversion of 
        vehicles and ground support equipment, owned by a commercial 
        service airport, to low-emission technology, if the airport is 
        located in an air quality nonattainment or maintenance area (as 
        defined in sections 171(2) and 175A of the Clean Air Act (42 
        U.S.C. 7501(2); 7505a) and if such project will result in an 
        airport receiving appropriate emission credits as described in 
        section 47139.''.
        (2) Guidance.--
            (A) Eligible low-emission modifications and improvements.--
        The Secretary of Transportation, in consultation with the 
        Administrator of the Environmental Protection Agency, shall 
        issue guidance describing eligible low-emission modifications 
        and improvements, and stating how airport sponsors will 
        demonstrate benefits, under section 47102(3)(K) of title 49, 
        United States Code, as added by this subsection.
            (B) Eligible low-emission vehicle technology.--The 
        Secretary, in consultation with the Administrator, shall issue 
        guidance describing eligible low-emission vehicle technology, 
        and stating how airport sponsors will demonstrate benefits, 
        under section 47102(3)(L) of title 49, United States Code, as 
        added by this subsection.
    (c) Allowable Project Cost.--Section 47110(b) is amended--
        (1) by striking ``and'' at the end of paragraph (4);
        (2) by striking the period at the end of paragraph (5) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(6) if the cost is for a project not described in section 
    47102(3) for acquiring for use at a commercial service airport 
    vehicles and ground support equipment owned by an airport that 
    include low-emission technology, but only to the extent of the 
    incremental cost of equipping such vehicles or equipment with low-
    emission technology, as determined by the Secretary.''.
    (d) Low-Emission Technology Equipment.--Section 47102 (as amended 
by section 801 of this Act) is further amended by inserting after 
paragraph (10) the following:
        ``(11) `low-emission technology' means technology for vehicles 
    and equipment whose emission performance is the best achievable 
    under emission standards established by the Environmental 
    Protection Agency and that relies exclusively on alternative fuels 
    that are substantially nonpetroleum based, as defined by the 
    Department of Energy, but not excluding hybrid systems or natural 
    gas powered vehicles.''.

SEC. 160. COMPATIBLE LAND USE PLANNING AND PROJECTS BY STATE AND LOCAL 
              GOVERNMENTS.

    (a) In General.--Subchapter I of chapter 471 is further amended by 
adding at the end the following:

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

    ``(a) In General.--The Secretary of Transportation may make grants, 
from amounts set aside under section 47117(e)(1)(A), to States and 
units of local government for development and implementation of land 
use compatibility plans and implementation of land use compatibility 
projects resulting from those plans for the purposes of making the use 
of land areas around large hub airports and medium hub airports 
compatible with aircraft operations. The Secretary may make a grant 
under this section for a land use compatibility plan or a project 
resulting from such plan only if--
        ``(1) the airport operator has not submitted a noise 
    compatibility program to the Secretary under section 47504 or has 
    not updated such program within the preceding 10 years; and
        ``(2) the land use plan or project meets the requirements of 
    this section.
    ``(b) Eligibility.--In order to receive a grant under this section, 
a State or unit of local government must--
        ``(1) have the authority to plan and adopt land use control 
    measures, including zoning, in the planning area in and around a 
    large or medium hub airport;
        ``(2) enter into an agreement with the airport owner or 
    operator that the development of the land use compatibility plan 
    will be done cooperatively; and
        ``(3) provide written assurance to the Secretary that it will 
    achieve, to the maximum extent possible, compatible land uses 
    consistent with Federal land use compatibility criteria under 
    section 47502(3) and that those compatible land uses will be 
    maintained.
    ``(c) Assurances.--The Secretary shall require a State or unit of 
local government to which a grant may be made under this section for a 
land use plan or a project resulting from such plan to provide--
        ``(1) assurances satisfactory to the Secretary that the plan--
            ``(A) is reasonably consistent with the goal of reducing 
        existing noncompatible land uses and preventing the 
        introduction of additional noncompatible land uses;
            ``(B) addresses ways to achieve and maintain compatible 
        land uses, including zoning, building codes, and any other land 
        use compatibility measures under section 47504(a)(2) that are 
        within the authority of the State or unit of local government 
        to implement;
            ``(C) uses noise contours provided by the airport operator 
        that are consistent with the airport operation and planning, 
        including any noise abatement measures adopted by the airport 
        operator as part of its own noise mitigation efforts;
            ``(D) does not duplicate, and is not inconsistent with, the 
        airport operator's noise compatibility measures for the same 
        area; and
            ``(E) has been approved jointly by the airport owner or 
        operator and the State or unit of local government; and
        ``(2) such other assurances as the Secretary determines to be 
    necessary to carry out this section.
    ``(d) Guidelines.--The Secretary shall establish guidelines to 
administer this section in accordance with the purposes and conditions 
described in this section. The Secretary may require a State or unit of 
local government to which a grant may be made under this section to 
provide progress reports and other information as the Secretary 
determines to be necessary to carry out this section.
    ``(e) Eligible Projects.--The Secretary may approve a grant under 
this section to a State or unit of local government for a project 
resulting from a land use compatibility plan only if the Secretary is 
satisfied that the project is consistent with the guidelines 
established by the Secretary under this section, the State or unit of 
local government has provided the assurances required by this section, 
the State or unit of local government has implemented (or has made 
provision to implement) those elements of the plan that are not 
eligible for Federal financial assistance, and that the project is not 
inconsistent with applicable Federal Aviation Administration standards.
    ``(f) Sunset.--This section shall not be in effect after September 
30, 2007.''.
    (b) Conforming Amendment.--The analysis of subchapter I of chapter 
471 is further amended by adding at the end the following:

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

SEC. 161. TEMPORARY INCREASE IN GOVERNMENT SHARE OF CERTAIN AIP PROJECT 
              COSTS.

    Notwithstanding section 47109(a) of title 49, United States Code, 
the Government's share of allowable project costs for a grant made in 
each of fiscal years 2004 through 2007 under chapter 471 of that title 
for a project described in paragraph (2) or (3) of that section shall 
be 95 percent.

SEC. 162. SHARE OF AIRPORT PROJECT COSTS.

    (a) In General.--Section 47109 is amended--
        (1) by redesignating subsection (c) as subsection (d); and
        (2) by inserting after subsection (b) the following:
    ``(c) Grandfather Rule.--
        ``(1) In general.--In the case of any project approved after 
    September 30, 2003, at a small hub airport or nonhub airport that 
    is located in a State containing unappropriated and unreserved 
    public lands and nontaxable Indian lands (individual and tribal) of 
    more than 5 percent of the total area of all lands in the State, 
    the Government's share of allowable costs of the project shall be 
    increased by the same ratio as the basic share of allowable costs 
    of a project divided into the increased (Public Lands States) share 
    of allowable costs of a project as shown on documents of the 
    Federal Aviation Administration dated August 3, 1979, at airports 
    for which the general share was 80 percent on August 3, 1979. This 
    subsection shall apply only if--
            ``(A) the State contained unappropriated and unreserved 
        public lands and nontaxable Indian lands of more than 5 percent 
        of the total area of all lands in the State on August 3, 1979; 
        and
            ``(B) the application under subsection (b), does not 
        increase the Government's share of allowable costs of the 
        project.
        ``(2) Limitation.--The Government's share of allowable project 
    costs determined under this subsection shall not exceed the lesser 
    of 93.75 percent or the highest percentage Government share 
    applicable to any project in any State under subsection (b).''.
    (b) Conforming Amendment.--Subsection (a) of section 47109 is 
amended by striking ``Except as provided in subsection (b)'' and 
inserting ``Except as provided in subsection (b) or subsection (c)''.

SEC. 163. FEDERAL SHARE FOR PRIVATE OWNERSHIP OF AIRPORTS.

    Section 47109(a)(4) is amended by striking ``40 percent'' and 
inserting ``70 percent''.

SEC. 164. DISPOSITION OF LAND ACQUIRED FOR NOISE COMPATIBILITY 
              PURPOSES.

    Section 47107(c)(2)(A)(iii) is amended by inserting before the 
semicolon at the end the following: ``, including the purchase of 
nonresidential buildings or property in the vicinity of residential 
buildings or property previously purchased by the airport as part of a 
noise compatibility program''.

SEC. 165. HANGAR CONSTRUCTION GRANT ASSURANCE.

    Section 47107(a) is amended--
        (1) by striking ``and'' at the end of paragraph (19);
        (2) by striking the period at the end of paragraph (20) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(21) if the airport owner or operator and a person who owns 
    an aircraft agree that a hangar is to be constructed at the airport 
    for the aircraft at the aircraft owner's expense, the airport owner 
    or operator will grant to the aircraft owner for the hangar a long-
    term lease that is subject to such terms and conditions on the 
    hangar as the airport owner or operator may impose.''.

SEC. 166. TERMINAL DEVELOPMENT COSTS.

    Section 47119(a) is amended to read as follows:
    ``(a) Repaying Borrowed Money.--
        ``(1) Terminal development costs incurred after june 30, 1970, 
    and before july 12, 1976.--An amount apportioned under section 
    47114 and made available to the sponsor of a commercial service 
    airport at which terminal development was carried out after June 
    30, 1970, and before July 12, 1976, is available to repay 
    immediately money borrowed and used to pay the costs for such 
    terminal development if those costs would be allowable project 
    costs under section 47110(d) if they had been incurred after 
    September 3, 1982.
        ``(2) Terminal development costs incurred between january 1, 
    1992, and october 31, 1992.--An amount apportioned under section 
    47114 and made available to the sponsor of a nonhub airport at 
    which terminal development was carried out between January 1, 1992, 
    and October 31, 1992, is available to repay immediately money 
    borrowed and to pay the costs for such terminal development if 
    those costs would be allowable project costs under section 
    47110(d).
        ``(3) Terminal development costs at primary airports.--An 
    amount apportioned under section 47114 or available under 
    subsection (b)(3) to a primary airport--
            ``(A) that was a nonhub airport in the most recent year 
        used to calculate apportionments under section 47114;
            ``(B) that is a designated airport under section 47118 in 
        fiscal year 2003; and
            ``(C) at which terminal development is carried out between 
        January 2003 and August 2004,
    is available to repay immediately money borrowed and used to pay 
    the costs for such terminal development if those costs would be 
    allowable project costs under section 47110(d).
        ``(4) Conditions for grant.--An amount is available for a grant 
    under this subsection only if--
            ``(A) the sponsor submits the certification required under 
        section 47110(d);
            ``(B) the Secretary of Transportation decides that using 
        the amount to repay the borrowed money will not defer an 
        airport development project outside the terminal area at that 
        airport; and
            ``(C) amounts available for airport development under this 
        subchapter will not be used for additional terminal development 
        projects at the airport for at least 1 year beginning on the 
        date the grant is used to repay the borrowed money.
        ``(5) Applicability of certain limitations.--A grant under this 
    subsection shall be subject to the limitations in subsection (b)(1) 
    and (2).''.

                       Subtitle D--Miscellaneous

SEC. 181. DESIGN-BUILD CONTRACTING.

    (a) In General.--Subchapter I of chapter 471 is further amended by 
adding at the end the following:

``Sec. 47142. Design-build contracting

    ``(a) In General.--The Administrator of the Federal Aviation 
Administration may approve an application of an airport sponsor under 
this section to authorize the airport sponsor to award a design-build 
contract using a selection process permitted under applicable State or 
local law if--
        ``(1) the Administrator approves the application using criteria 
    established by the Administrator;
        ``(2) the design-build contract is in a form that is approved 
    by the Administrator;
        ``(3) the Administrator is satisfied that the contract will be 
    executed pursuant to competitive procedures and contains a 
    schematic design adequate for the Administrator to approve the 
    grant;
        ``(4) use of a design-build contract will be cost effective and 
    expedite the project;
        ``(5) the Administrator is satisfied that there will be no 
    conflict of interest; and
        ``(6) the Administrator is satisfied that the selection process 
    will be as open, fair, and objective as the competitive bid system 
    and that at least 3 or more bids will be submitted for each project 
    under the selection process.
    ``(b) Reimbursement of Costs.--The Administrator may reimburse an 
airport sponsor for design and construction costs incurred before a 
grant is made pursuant to this section if the project is approved by 
the Administrator in advance and is carried out in accordance with all 
administrative and statutory requirements that would have been 
applicable under this chapter if the project were carried out after a 
grant agreement had been executed.
    ``(c) Design-Build Contract Defined.--In this section, the term 
`design-build contract' means an agreement that provides for both 
design and construction of a project by a contractor.''.
    (b) Conforming Amendment.--The analysis for chapter 471 is further 
amended by inserting after the item relating to section 47141 the 
following:

``47142. Design-build contracting.''.

SEC. 182. PILOT PROGRAM FOR INNOVATIVE FINANCING OF AIR TRAFFIC CONTROL 
              EQUIPMENT.

    (a) In General.--In order to test the cost effectiveness and 
feasibility of long-term financing of modernization of major air 
traffic control systems, the Administrator of the Federal Aviation 
Administration may establish a pilot program to test innovative 
financing techniques through amending, subject to section 1341 of title 
31, United States Code, a contract for more than one, but not more than 
20, fiscal years to purchase and install air traffic control equipment 
for the Administration. Such amendments may be for more than one, but 
not more than 10, fiscal years.
    (b) Cancellation.--A contract described in subsection (a) may 
include a cancellation provision if the Administrator determines that 
such a provision is necessary and in the best interest of the United 
States. Any such provision shall include a cancellation liability 
schedule that covers reasonable and allocable costs incurred by the 
contractor through the date of cancellation plus reasonable profit, if 
any, on those costs. Any such provision shall not apply if the contract 
is terminated by default of the contractor.
    (c) Contract Provisions.--If feasible and practicable for the pilot 
program, the Administrator may make an advance contract provision to 
achieve economic-lot purchases and more efficient production rates.
    (d) Limitation.--The Administrator may not amend a contract under 
this section until the program for the terminal automation replacement 
systems has been rebaselined in accordance with the acquisition 
management system of the Administration.
    (e) Annual Reports.--At the end of each fiscal year during the term 
of the pilot program, the Administrator shall transmit 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 how the Administrator has implemented in 
such fiscal year the pilot program, the number and types of contracts 
or contract amendments that are entered into under the program, and the 
program's cost effectiveness.
    (f) Funding.--Out of amounts appropriated under section 48101 for 
fiscal year 2004, such sums as may be necessary shall be available to 
carry out this section.

SEC. 183. COST SHARING OF AIR TRAFFIC MODERNIZATION PROJECTS.

    (a) In General.--Chapter 445 is amended by adding at the end the 
following:

``Sec. 44517. Program to permit cost sharing of air traffic 
            modernization projects

    ``(a) In General.--Subject to the requirements of this section, the 
Secretary may carry out a program under which the Secretary may make 
grants to project sponsors for not more than 10 eligible projects per 
fiscal year for the purpose of improving aviation safety and enhancing 
mobility of the Nation's air transportation system by encouraging non-
Federal investment in critical air traffic control equipment and 
software.
    ``(b) Federal Share.--The Federal share of the cost of an eligible 
project carried out under the program shall not exceed 33 percent. The 
non-Federal share of the cost of an eligible project shall be provided 
from non-Federal sources, including revenues collected pursuant to 
section 40117.
    ``(c) Limitation on Grant Amounts.--No eligible project may receive 
more than $5,000,000 in Federal funds under the program.
    ``(d) Funding.--The Secretary shall use amounts appropriated under 
section 48101(a) to carry out the program.
    ``(e) Definitions.--In this section, the following definitions 
apply:
        ``(1) Eligible project.--The term `eligible project' means a 
    project to purchase equipment or software relating to the Nation's 
    air traffic control system that is certified or approved by the 
    Administrator of the Federal Aviation Administration and that 
    promotes safety, efficiency, or mobility. Such projects may 
    include--
            ``(A) airport-specific air traffic facilities and 
        equipment, including local area augmentation systems, 
        instrument landing systems, weather and wind shear detection 
        equipment, and lighting improvements;
            ``(B) automation tools to effect improvements in airport 
        capacity, including passive final approach spacing tools and 
        traffic management advisory equipment; and
            ``(C) equipment and software that enhance airspace control 
        procedures or assist in en route surveillance, including 
        oceanic and offshore flight tracking.
        ``(2) Project sponsor.--The term `project sponsor' means any 
    major user of the national airspace system, as determined by the 
    Secretary, including a public-use airport or a joint venture 
    between a public-use airport and one or more air carriers.
    ``(f) Transfers of Equipment.--Notwithstanding any other provision 
of law, and upon agreement by the Administrator, a project sponsor may 
transfer, without consideration, to the Federal Aviation 
Administration, facilities, equipment, or automation tools, the 
purchase of which was assisted by a grant made under this section, if 
such facilities, equipment or tools meet Federal Aviation 
Administration operation and maintenance criteria.
    ``(g) Guidelines.--The Administrator shall issue advisory 
guidelines on the implementation of the program. The guidelines shall 
not be subject to administrative rulemaking requirements under 
subchapter II of chapter 5 of title 5.''.
    (b) Conforming Amendment.--The analysis for chapter 445 is amended 
by adding at the end the following:

``44517. Program to permit cost sharing of air traffic modernization 
          projects.''.

SEC. 184. FACILITIES AND EQUIPMENT REPORTS.

    (a) Biannual Reports.--Beginning 180 days after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration shall transmit a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure every 6 months that 
describes--
        (1) the 10 largest programs funded under section 48101(a) of 
    title 49, United States Code;
        (2) any changes in the budget for such programs;
        (3) the program schedule; and
        (4) technical risks associated with the programs.
    (b) Sunset Provision.--This section shall cease to be effective 
beginning on the date that is 4 years after the date of enactment of 
this Act.

SEC. 185. CIVIL PENALTY FOR PERMANENT CLOSURE OF AN AIRPORT WITHOUT 
              PROVIDING SUFFICIENT NOTICE.

    (a) In General.--Chapter 463 is amended by adding at the end the 
following:

``Sec. 46319. Permanent closure of an airport without providing 
            sufficient notice

    ``(a) Prohibition.--A public agency (as defined in section 47102) 
may not permanently close an airport listed in the national plan of 
integrated airport systems under section 47103 without providing 
written notice to the Administrator of the Federal Aviation 
Administration at least 30 days before the date of the closure.
    ``(b) Publication of Notice.--The Administrator shall publish each 
notice received under subsection (a) in the Federal Register.
    ``(c) Civil Penalty.--A public agency violating subsection (a) 
shall be liable for a civil penalty of $10,000 for each day that the 
airport remains closed without having given the notice required by this 
section.''.
    (b) Conforming Amendment.--The analysis for chapter 463 is amended 
by adding at the end the following:

``46319. Permanent closure of an airport without providing sufficient 
          notice.''.

SEC. 186. MIDWAY ISLAND AIRPORT.

    (a) Findings.--Congress finds that the continued operation of the 
Midway Island Airport in accordance with the standards of the Federal 
Aviation Administration applicable to commercial airports is critical 
to the safety of commercial, military, and general aviation in the mid-
Pacific Ocean region.
    (b) Memorandum of Understanding on Sale of Aircraft Fuel.--The 
Secretaries of Transportation, Defense, Interior, and Homeland Security 
shall enter into a memorandum of understanding to facilitate the sale 
of aircraft fuel on Midway Island at a price that will generate 
sufficient revenue to improve the ability of the airport to operate on 
a self-sustaining basis in accordance with the standards of the Federal 
Aviation Administration applicable to commercial airports. The 
memorandum shall also address the long-range potential of promoting 
tourism as a means to generate revenue to operate the airport.
    (c) Transfer of Navigation Aids at Midway Island Airport.--The 
Midway Island Airport may transfer, without consideration, to the 
Administrator the navigation aids at the airport. The Administrator 
shall accept the navigation aids and operate and maintain the 
navigation aids under criteria of the Administrator.
    (d) Funding to Secretary of the Interior for Midway Island 
Airport.--The Secretary of Transportation may enter into a reimbursable 
agreement with the Secretary of the Interior for the purpose of funding 
airport development, as defined in section 47102(3) of title 49, United 
States Code, at Midway Island Airport for fiscal years ending before 
October 1, 2007, from amounts available in the discretionary fund 
established by section 47115 of such title. The maximum obligation 
under the agreement for any such fiscal year shall be $2,500,000.

SEC. 187. INTERMODAL PLANNING.

    Section 47106(c)(1)(A) is amended--
        (1) by striking ``and'' at the end of clause (i);
        (2) by adding ``and'' at the end of clause (ii); and
        (3) by adding at the end the following:
            ``(iii) with respect to an airport development project 
        involving the location of an airport, runway, or major runway 
        extension at a medium or large hub airport, the airport sponsor 
        has made available to and has provided upon request to the 
        metropolitan planning organization in the area in which the 
        airport is located, if any, a copy of the proposed amendment to 
        the airport layout plan to depict the project and a copy of any 
        airport master plan in which the project is described or 
        depicted;''.

SEC. 188. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

    Section 47115 is amended by adding at the end the following:
    ``(j) Marshall Islands, Micronesia, and Palau.--For fiscal years 
2004 through 2007, the sponsors of airports located in the Republic of 
the Marshall Islands, Federated States of Micronesia, and Republic of 
Palau shall be eligible for grants under this section and section 
47116.''.

SEC. 189. LIMITATION ON APPROVAL OF CERTAIN PROGRAMS.

    Section 47504(b) is amended by adding at the end the following:
    ``(4) The Secretary shall not approve in fiscal years 2004 through 
2007 a program submitted under subsection (a) if the program requires 
the expenditure of funds made available under section 48103 for 
mitigation of aircraft noise less than 65 DNL.''.

SEC. 190. CONVEYANCE OF AIRPORT.

    (a) Offer of Conveyance.--Subject to the requirements of this 
section, the Chaluka Corporation is hereby offered ownership of the 
surface estate in the former Nikolski Radio Relay Site on Umnak Island, 
Alaska, and the Aleut Corporation is hereby offered the subsurface 
estate of that Site, in exchange for relinquishment by the Chaluka 
Corporation and the Aleut Corporation of Lot 1, Section 14, Township 81 
South, Range 133 West, Seward Meridian, Alaska.
    (b) Acceptance and Relinquishment.--
        (1) In general.--The Secretary of the Interior shall convey the 
    land as provided in subsection (c) if the Chaluka Corporation and 
    the Aleut Corporation take the actions specified in paragraphs (2) 
    and (3), respectively.
        (2) Chaluka corporation.--As a condition for conveyance under 
    subsection (c), the Chaluka Corporation shall notify the Secretary 
    of the Interior within 180 days after the date of enactment of this 
    Act that, by means of a legally binding resolution of the Board of 
    Directors, the Chaluka Corporation--
            (A) accepts the offer under subsection (a);
            (B) confirms that the area surveyed by the Bureau of Land 
        Management for the purpose of fulfilling the Chaluka 
        Corporation's final entitlements under sections 12(a) and 12(b) 
        of the Alaska Native Claims Settlement Act (43 U.S.C. 1611(a) 
        and (b)), identified as Group Survey Number 773, accurately 
        represents the Chaluka Corporation's final, irrevocable Alaska 
        Native Claims Settlement Act priorities and entitlements unless 
        any tract in Group Survey Number 773 is ultimately not conveyed 
        as the result of an appeal; and
            (C) relinquishes Lot 1, Section 14, Township 81 South, 
        Range 133 West, Seward Meridian, Alaska, which will be charged 
        against the Chaluka Corporation's final entitlement under 
        section 12(b) of the Alaska Native Claims Settlement Act (43 
        U.S.C. 1611(b)).
        (3) Aleut corporation.--As a condition for the conveyance under 
    subsection (c), the Aleut Corporation shall notify the Secretary of 
    the Interior within 180 days after the date of enactment of this 
    Act that, by means of a legally binding resolution of the Board of 
    Directors, accompanied by the written legal opinion of counsel as 
    to the legal sufficiency of the Board of Directors' action, the 
    Aleut Corporation--
            (A) accepts the offer under subsection (a); and
            (B) relinquishes all rights to Lot 1, Section 14, Township 
        81 South, Range 133 West, Seward Meridian, Alaska.
    (c) Requirement To Convey.--
        (1) Conveyance.--Notwithstanding the existence of Public Land 
    Order 2374, upon receipt from the Chaluka Corporation and from the 
    Aleut Corporation of their acceptances made in accordance with the 
    requirements of subsections (b)(2) and (b)(3), respectively, of the 
    offer under subsection (a), the Secretary of the Interior shall 
    convey to the Chaluka Corporation the surface estate, and to the 
    Aleut Corporation the subsurface estate, of--
            (A) Phase I lands as soon as practicable; and
            (B) each parcel of Phase II lands upon completion of 
        environmental restoration of Phase II lands in accordance with 
        applicable law.
        (2) Phase i liability limit.--Notwithstanding section 107 of 
    the Comprehensive Environmental Response, Compensation, and 
    Liability Act of 1980 (42 U.S.C. 9607), neither the Chaluka 
    Corporation nor the Aleut Corporation shall be subject to any 
    liability for--
            (A) the presence or release of a hazardous substance, as 
        that term is defined by section 101(14) of that Act (16 U.S.C. 
        9601(14)), on Phase I lands or the presence of solid waste on 
        Phase I lands, which predates conveyance of those lands to the 
        Chaluka Corporation and the Aleut Corporation pursuant to this 
        section; or
            (B) any release, from any of the hazardous substances or 
        solid wastes referred to in subparagraph (A), following 
        conveyance of Phase I lands under this section, so long as the 
        presence of or releases from those hazardous substances or 
        solid wastes are not the result of actions by the Chaluka 
        Corporation or the Aleut Corporation.
        (3) Continued access over hill and beach streets.--The surface 
    estate conveyed under paragraph (1) shall be subject to the 
    public's right of access over Hill and Beach Streets, located on 
    Tract B of United States Survey 4904.
    (d) Treatment as ancsa lands.--Conveyances made under subsection 
(c) shall be considered to be conveyances under the Alaska Native 
Claims Settlement Act (43 U.S.C. 1601 et seq.), and are subject to the 
provisions of that Act except sections 14(c)(3), 14(c)(4), and 17(b)(3) 
(43 U.S.C. 1613(c)(3), 1613(c)(4), and 1616(b)(3)).
    (e) Authority To Convey Certain Other Lands.--The Secretary of the 
Interior shall at no cost to the recipient convey ownership of--
        (1) an estate in fee simple in--
            (A) each of Lots 1, 2, 5, 6, and 9 of Tract B of Amended 
        United States Survey 4904 that is the subject of an Aleutian 
        Housing Authority mutual help occupancy agreement, to the 
        Aleutian Housing Authority; and
            (B) the remainder of such Lots to the current occupants; 
        and
        (2) an estate in fee simple in the Nikolski powerhouse land, 
    to--
            (A) the Indian Reorganization Act Tribal Government for the 
        Native Village of Nikolski, upon completion of the 
        environmental restoration described in subsection (f), if after 
        the restoration the powerhouse continues to be located on the 
        Nikolski powerhouse land; or
            (B) the surface estate to the Chaluka Corporation and the 
        subsurface estate to the Aleut Corporation, if after the 
        restoration, the Nikolski powerhouse is no longer located on 
        the Nikolski powerhouse land. -
    (f) Restoration of Powerhouse Land.--The Denali Commission, in 
consultation with the appropriate agency of the State of Alaska, is 
authorized to arrange for environmental restoration, in accordance with 
applicable law, of the areas on, beneath, and adjacent to the Nikolski 
powerhouse land that are contaminated as a result of powerhouse 
operations and activities.
    (g) Access.--As a condition of the conveyance of land under 
subsection (c), the Chaluka Corporation shall permit the United States 
Government, and its agents, employees, and contractors, to have 
unrestricted access to the airfield at Nikolski in perpetuity for site 
investigation, restoration, remediation, and environmental monitoring 
of the former Nikolski Radio Relay Site and reasonable access to that 
airfield, and to other land conveyed under this section, for any 
activity associated with management of lands owned by the United States 
and for other governmental purposes without cost to the Government.
    (h) Survey Requirements.--
        (1) BLM surveys.--The Bureau of Land Management is not required 
    to conduct additional on-the-ground surveys as a result of 
    conveyances under this section. The patent to the Chaluka 
    Corporation may be based on protracted section lines and lotting 
    where relinquishment under subsection (b)(2)(C) results in a change 
    to the Chaluka Corporation's final boundaries.
        (2) Monumentation.--No additional monumentation is required to 
    complete those final boundaries.
    (i) Authorization of Appropriations.--
        (1) Federal agencies.--There is authorized to be appropriated 
    to the Department of the Interior and other appropriate agencies 
    such sums as are necessary to carry out the provisions of this 
    section.
        (2) Powerhouse land restoration.--There is authorized to be 
    appropriated $1,500,000 to reimburse the appropriate State of 
    Alaska agency for costs required for environmental restoration of 
    the Nikolski powerhouse land, in accordance with applicable law.
    (j) Termination.--This section shall cease to be effective if 
either the Chaluka Corporation or the Aleut Corporation affirmatively 
rejects the offer under subsection (a) or if after 180 days following 
the date of enactment of this Act either corporation has not taken the 
actions specified in subsection (b)(2) or (b)(3), respectively.
    (k) Definitions.--In this section, the following definitions apply:
        (1) The term ``Aleut Corporation'' means the regional 
    corporation established under the Alaska Native Claims Settlement 
    Act (43 U.S.C. 1601 et seq.) for the region in which the Native 
    Village of Nikolski, Alaska, is located.
        (2) The term ``Chaluka Corporation'' means the village 
    corporation established under the Alaska Native Claims Settlement 
    Act (43 U.S.C. 1601 et seq.) for the Native Village of Nikolski, 
    Alaska.
        (3) The term ``former Nikolski Radio Relay Site'' means the 
    portions of Tracts A, B, and C of Public Land Order 2374 that are 
    surveyed as Tracts 37, 37A, 38, 39, and 39A of Township 83 South, 
    Range 136 West, Seward Meridian, Alaska, and Tract B of United 
    States Survey 4904, Alaska, except--
            (A) Lots 1, 2, 5, 6, and 9 of Tract B of Amended United 
        States Survey 4904; and
            (B) the Nikolski powerhouse land.
        (4) The term ``Nikolski powerhouse land'' means the parcel of 
    land upon which is located the power generation building for 
    supplying power to the Native Village of Nikolski, the boundaries 
    of which are described generally as follows: Beginning at the point 
    at which the southerly boundary of Tract 39 of Township 83 South, 
    Range 136 West, Seward Meridian, Alaska, intersects the easterly 
    boundary of the road that connects the Native Village of Nikolski 
    and the airfield at Nikolski; then meandering in a northeasterly 
    direction along the easterly boundary of that road until the road 
    intersects the westerly boundary of the road that connects Umnak 
    Lake and the airfield; then meandering in a southerly direction 
    along the western boundary of that Umnak Lake road until that 
    western boundary intersects the southern boundary of such Tract 39; 
    then proceeding eastward along the southern boundary of such Tract 
    39 to the beginning point.
        (5) The term ``Phase I lands'' means Tract 39 of Township 83 
    South, Range 136 West, Seward Meridian, excluding the Nikolski 
    powerhouse land.
        (6) The term ``Phase II lands'' means the portion of the former 
    Nikolski Radio Relay Site not conveyed as Phase I lands.

                       TITLE II--FAA ORGANIZATION
                         Subtitle A--FAA Reform

SEC. 201. MANAGEMENT ADVISORY COMMITTEE MEMBERS.

    Section 106(p) is amended--
        (1) in the subsection heading by inserting ``and Air Traffic 
    Services Board'' after ``Council''; and
        (2) in paragraph (2)--
            (A) by striking ``consist of'' and all that follows through 
        ``members, who'' and inserting ``consist of 13 members, who'';
            (B) by inserting after ``Senate'' in subparagraph (C)(i) 
        ``, except that initial appointments made after May 1, 2003, 
        shall be made by the Secretary of Transportation'';
            (C) by striking the semicolon at the end of subparagraph 
        (C)(ii) and inserting ``; and''; and
            (D) by striking ``employees, by--'' in subparagraph (D) and 
        all that follows through the period at the end of subparagraph 
        (E) and inserting ``employees, by the Secretary of 
        Transportation.''.

SEC. 202. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE.

    Section 106(p) is amended--
        (1) by striking paragraph (3) and inserting the following:
        ``(3) Qualifications.--No officer or employee of the United 
    States Government may be appointed to the Council under paragraph 
    (2)(C) or to the Air Traffic Services Committee.'';
        (2) in paragraph (4)(C) by inserting ``or Air Traffic Services 
    Committee'' after ``Council'' each place it appears;
        (3) in paragraph (5) by inserting ``, the Air Traffic Services 
    Committee,'' after ``Council'';
        (4) in paragraph (6)(C)--
            (A) by striking ``subcommittee'' in the subparagraph 
        heading and inserting ``committee'';
            (B) by striking ``member'' and inserting ``members'';
            (C) by striking ``under paragraph (2)(E)'' the first place 
        it appears and inserting ``to the Air Traffic Services 
        Committee''; and
            (D) by striking ``of the members first'' and all that 
        follows through the period at the end and inserting ``the first 
        members of the Committee shall be the members of the Air 
        Traffic Services Subcommittee of the Council on the day before 
        the date of enactment of the Vision 100--Century of Aviation 
        Reauthorization Act who shall serve in an advisory capacity 
        until such time as the President appoints the members of the 
        Committee under paragraph (7).'';
        (5) in paragraph (6)(D) by striking ``under paragraph (2)(E)'' 
    and inserting ``to the Committee'';
        (6) in paragraph (6)(E) by inserting ``or Committee'' after 
    ``Council'';
        (7) in paragraph (6)(F) by inserting ``of the Council or 
    Committee'' after ``member'';
        (8) in the second sentence of subparagraph (6)(G)--
            (A) by striking ``Council'' and inserting ``Committee''; 
        and
            (B) by striking ``appointed under paragraph (2)(E)'';
        (9) in paragraph (6)(H)--
            (A) by striking ``subcommittee'' in the subparagraph 
        heading and inserting ``committee'';
            (B) by striking ``under paragraph (2)(E)'' in clause (i) 
        and inserting ``to the Committee''; and
            (C) by striking ``Air Traffic Services Subcommittee'' and 
        inserting ``Committee'';
        (10) in paragraph (6)(I)(i)--
            (A) by striking ``appointed under paragraph (2)(E) is'' and 
        inserting ``is serving as''; and
            (B) by striking ``Subcommittee'' and inserting 
        ``Committee'';
        (11) in paragraph (6)(I)(ii)--
            (A) by striking ``appointed under paragraph (2)(E)'' and 
        inserting ``who is a member of the Committee''; and
            (B) by striking ``Subcommittee'' and inserting 
        ``Committee'';
        (12) in paragraph (6)(K) by inserting ``or Committee'' after 
    ``Council'';
        (13) in paragraph (6)(L) by inserting ``or Committee'' after 
    ``Council'' each place it appears; and
        (14) in paragraph (7)--
            (A) by striking ``subcommittee'' in the paragraph heading 
        and inserting ``committee'';
            (B) by striking subparagraph (A) and inserting the 
        following:
            ``(A) Establishment.--The Administrator shall establish a 
        committee that is independent of the Council by converting the 
        Air Traffic Services Subcommittee of the Council, as in effect 
        on the day before the date of enactment of the Vision 100--
        Century of Aviation Reauthorization Act, into such committee. 
        The committee shall be known as the Air Traffic Services 
        Committee (in this subsection referred to as the 
        `Committee').'';
            (C) by redesignating subparagraphs (B) through (F) as 
        subparagraphs (D) through (H), respectively;
            (D) by inserting after subparagraph (A) the following:
            ``(B) Membership and qualifications.--Subject to paragraph 
        (6)(C), the Committee shall consist of five members, one of 
        whom shall be the Administrator and shall serve as chairperson. 
        The remaining members shall be appointed by the President with 
        the advice and consent of the Senate and--
                ``(i) shall have a fiduciary responsibility to 
            represent the public interest;
                ``(ii) shall be citizens of the United States; and
                ``(iii) shall be appointed without regard to political 
            affiliation and solely on the basis of their professional 
            experience and expertise in one or more of the following 
            areas and, in the aggregate, should collectively bring to 
            bear expertise in all of the following areas:

                    ``(I) Management of large service organizations.
                    ``(II) Customer service.
                    ``(III) Management of large procurements.
                    ``(IV) Information and communications technology.
                    ``(V) Organizational development.
                    ``(VI) Labor relations.

            ``(C) Prohibitions on members of committee.--No member of 
        the Committee may--
                ``(i) have a pecuniary interest in, or own stock in or 
            bonds of, an aviation or aeronautical enterprise, except an 
            interest in a diversified mutual fund or an interest that 
            is exempt from the application of section 208 of title 18;
                ``(ii) engage in another business related to aviation 
            or aeronautics; or
                ``(iii) be a member of any organization that engages, 
            as a substantial part of its activities, in activities to 
            influence aviation-related legislation.'';
            (E) by striking ``Subcommittee'' each place it appears in 
        subparagraphs (D) and (E) (as redesignated by subparagraph (C) 
        of this paragraph) and inserting ``Committee'';
            (F) by striking ``approve'' in subparagraph (E)(v)(I) (as 
        so redesignated) and inserting ``make recommendations on'';
            (G) by striking ``request'' in subparagraph (E)(v)(II) (as 
        so redesignated) and inserting ``recommendations'';
            (H) by striking ``ensure that the budget request supports'' 
        in subparagraph (E)(v)(III) (as so redesignated) and inserting 
        ``base such budget recommendations on'';
            (I) by striking ``The Secretary shall submit'' in 
        subparagraph (E) (as so redesignated) and all that follows 
        through the period at the end of such subparagraph (E);
            (J) by striking subparagraph (F) (as so redesignated) and 
        inserting the following:
            ``(F) Committee personnel matters and expenses.--
                ``(i) Personnel matters.--The Committee may appoint and 
            terminate for purposes of employment by the Committee any 
            personnel that may be necessary to enable the Committee to 
            perform its duties, and may procure temporary and 
            intermittent services under section 40122.
                ``(ii) Travel expenses.--Each member of the Committee 
            shall receive travel expenses, including per diem in lieu 
            of subsistence, in accordance with applicable provisions 
            under subchapter I of chapter 57 of title 5, United States 
            Code.'';
            (K) in subparagraph (G) (as so redesignated)--
                (i) by striking clause (i);
                (ii) by redesignating clauses (ii), (iii), and (iv) as 
            clauses (i), (ii), and (iii), respectively; and
                (iii) by striking ``Subcommittee'' each place it 
            appears in clauses (i), (ii), and (iii) (as so 
            redesignated) and inserting ``Committee'';
            (L) in subparagraph (H) (as so redesignated)--
                (i) by striking ``Subcommittee'' each place it appears 
            and inserting ``Committee'';
                (ii) by striking ``Administrator, the Council'' each 
            place it appears in clauses (i) and (ii) and inserting 
            ``Secretary''; and
                (iii) in clause (ii) by striking ``(B)(i)'' and 
            inserting ``(D)(i)''; and
            (M) by adding at the end the following:
            ``(I) Authorization.--There are authorized to be 
        appropriated to the Committee such sums as may be necessary for 
        the Committee to carry out its activities.''.

SEC. 203. CLARIFICATION OF THE RESPONSIBILITIES OF THE CHIEF OPERATING 
              OFFICER.

    Section 106(r) is amended--
        (1) in each of paragraphs (1)(A) and (2)(A) by striking ``Air 
    Traffic Services Subcommittee of the Aviation Management Advisory 
    Council'' and inserting ``Air Traffic Services Committee'';
        (2) in paragraph (2)(B) by inserting ``in'' before ``paragraph 
    (3).'';
        (3) in paragraph (3) by striking ``Air Traffic Control 
    Subcommittee of the Aviation Management Advisory Committee'' and 
    inserting ``Air Traffic Services Committee'';
        (4) in paragraph (4) by striking ``Transportation and 
    Congress'' and inserting ``Transportation, the Committee on 
    Transportation and Infrastructure of the House of Representatives, 
    and the Committee on Commerce, Science, and Transportation of the 
    Senate'';
        (5) in paragraph (5)(A)--
            (A) by striking ``develop a'' and inserting ``implement 
        the''; and
            (B) by striking ``, including the establishment of'' and 
        inserting ``in order to further'';
        (6) in paragraph (5)(B)--
            (A) by striking ``review'' and all that follows through 
        ``Administration,'' and inserting ``oversee the day-to-day 
        operational functions of the Administration for air traffic 
        control,'';
            (B) by striking ``and'' at the end of clause (ii);
            (C) by striking the period at the end of clause (iii) and 
        inserting ``; and''; and
            (D) by adding at the end the following:
                ``(iv) the management of cost-reimbursable 
            contracts.'';
        (7) in paragraph (5)(C)(i) by striking ``prepared by the 
    Administrator'';
        (8) in paragraph (5)(C)(ii) by striking ``and the Secretary of 
    Transportation'' and inserting ``and the Committee''; and
        (9) in paragraph (5)(C)(iii)--
            (A) by inserting ``agency's'' before ``annual''; and
            (B) by striking ``developed under subparagraph (A) of this 
        subsection.'' and inserting ``for air traffic control 
        services.''.

SEC. 204. DEPUTY ADMINISTRATOR.

    Section 106(d) is amended--
        (1) by redesignating paragraphs (2) and (3) as (3) and (4), 
    respectively; and
        (2) by inserting after paragraph (1) the following:
    ``(2) The annual rate of basic pay of the Deputy Administrator 
shall be set by the Secretary but shall not exceed the annual rate of 
basic pay payable to the Administrator of the Federal Aviation 
Administration.''.

                       Subtitle B--Miscellaneous

SEC. 221. CONTROLLER STAFFING.

    (a) Annual Report.--Beginning with the submission of the Budget of 
the United States to the Congress for fiscal year 2005, the 
Administrator of the Federal Aviation Administration shall transmit a 
report to the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation and 
Infrastructure that describes the overall air traffic controller 
staffing plan, including strategies to address anticipated retirement 
and replacement of air traffic controllers.
    (b) Human Capital Workforce Strategy.--
        (1) Development.--The Administrator shall develop a 
    comprehensive human capital workforce strategy to determine the 
    most effective method for addressing the need for more air traffic 
    controllers that is identified in the June 2002 report of the 
    General Accounting Office.
        (2) Completion date.--Not later than 1 year after the date of 
    enactment of this Act, the Administrator shall complete development 
    of the strategy.
        (3) Report.--Not later than 30 days after the date on which the 
    strategy is completed, the Administrator shall transmit to Congress 
    a report describing the strategy.

SEC. 222. WHISTLEBLOWER PROTECTION UNDER ACQUISITION MANAGEMENT SYSTEM.

    Section 40110(d)(2)(C) is amended by striking ``355).'' and 
inserting ``355), except for section 315 (41 U.S.C. 265). For the 
purpose of applying section 315 of that Act to the system, the term 
`executive agency' is deemed to refer to the Federal Aviation 
Administration.''.

SEC. 223. FAA PURCHASE CARDS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall take appropriate actions to implement the 
recommendations contained in the report of the General Accounting 
Office entitled ``FAA Purchase Cards: Weak Controls Resulted in 
Instances of Improper and Wasteful Purchases and Missing Assets'', 
numbered GAO-03-405 and dated March 21, 2003.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Administrator shall transmit to Congress a report 
containing a description of the actions taken by the Administrator 
under this section.

SEC. 224. PROCUREMENT.

    (a) Duties and Powers.--Section 40110(c) is amended--
        (1) by striking ``Administration--'' and all that follows 
    through ``(2) may--'' and inserting ``Administration may--'';
        (2) by striking subparagraph (D);
        (3) by redesignating subparagraphs (A), (B), (C), (E), and (F) 
    as paragraphs (1), (2), (3), (4), and (5), respectively; and
        (4) by moving such paragraphs (1) through (5) 2 ems to the 
    left.
    (b) Acquisition Management System.--Section 40110(d) is amended--
        (1) in paragraph (1)--
            (A) by striking ``, not later than January 1, 1996,''; and
            (B) by striking ``provides for more timely and cost-
        effective acquisitions of equipment and materials.'' and 
        inserting the following:
    ``provides for--
            ``(A) more timely and cost-effective acquisitions of 
        equipment, services, property, and materials; and
            ``(B) the resolution of bid protests and contract disputes 
        related thereto, using consensual alternative dispute 
        resolution techniques to the maximum extent practicable.''; and
        (2) by striking paragraph (4), relating to the effective date, 
    and inserting the following:
        ``(4) Adjudication of certain bid protests and contract 
    disputes.--A bid protest or contract dispute that is not addressed 
    or resolved through alternative dispute resolution shall be 
    adjudicated by the Administrator through Dispute Resolution 
    Officers or Special Masters of the Federal Aviation Administration 
    Office of Dispute Resolution for Acquisition, acting pursuant to 
    sections 46102, 46104, 46105, 46106 and 46107 and shall be subject 
    to judicial review under section 46110 and to section 504 of title 
    5.''.
    (c) Authority of Administrator To Acquire Services.--Section 
106(f)(2)(A)(ii) is amended by inserting ``, services,'' after 
``property''.

SEC. 225. DEFINITIONS.

    (a) In General.--Section 40102(a) is amended--
        (1) by redesignating paragraphs (38) through (42) as paragraphs 
    (43) through (47), respectively;
        (2) by inserting after paragraph (37) the following:
        ``(42) `small hub airport' means a commercial service airport 
    (as defined in section 47102) that has at least 0.05 percent but 
    less than 0.25 percent of the passenger boardings.'';
        (3) by redesignating paragraphs (33) through (37) as paragraphs 
    (37) through (41) respectively;
        (4) by inserting after paragraph (32) the following:
        ``(36) `passenger boardings'--
            ``(A) means, unless the context indicates otherwise, 
        revenue passenger boardings in the United States in the prior 
        calendar year on an aircraft in service in air commerce, as the 
        Secretary determines under regulations the Secretary 
        prescribes; and
            ``(B) includes passengers who continue on an aircraft in 
        international flight that stops at an airport in the 48 
        contiguous States, Alaska, or Hawaii for a nontraffic 
        purpose.'';
        (5) by redesignating paragraph (32) as paragraph (35);
        (6) by inserting after paragraph (31) the following:
        ``(34) `nonhub airport' means a commercial service airport (as 
    defined in section 47102) that has less than 0.05 percent of the 
    passenger boardings.'';
        (7) by redesignating paragraphs (30) and (31) as paragraphs 
    (32) and (33), respectively;
        (8) by inserting after paragraph (29) the following:
        ``(31) `medium hub airport' means a commercial service airport 
    (as defined in section 47102) that has at least 0.25 percent but 
    less than 1.0 percent of the passenger boardings.'';
        (9) by redesignating paragraph (29) as paragraph (30); and
        (10) by inserting after paragraph (28) the following:
        ``(29) `large hub airport' means a commercial service airport 
    (as defined in section 47102) that has at least 1.0 percent of the 
    passenger boardings.''.
    (b) Conforming Amendments.--
        (1) Air service termination notice.--Section 41719(d) is 
    amended--
            (A) by striking paragraph (1); and
            (B) by redesignating paragraphs (2) through (5) as 
        paragraphs (1) through (4), respectively.
        (2) Small community air service.--Section 41731(a) is amended 
    by striking paragraphs (3) through (5).
        (3) Airports not receiving sufficient service.--Section 41743 
    is amended--
            (A) in subsection (c)(1) by striking ``(as that term is 
        defined in section 41731(a)(5))''; and
            (B) in subsection (f) by striking ``(as defined in section 
        41731(a)(3))''.
        (4) Preservation of basic essential air service at single 
    carrier dominated hub airports.--Section 41744(b) is amended by 
    striking ``(as defined in section 41731)''.
        (5) Regional air service incentive program.--Section 41762 is 
    amended--
            (A) by striking paragraphs (11) and (15); and
            (B) by redesignating paragraphs (12), (13), (14), and (16) 
        as paragraphs (11), (12), (13), and (14), respectively.

SEC. 226. AIR TRAFFIC CONTROLLER RETIREMENT.

    (a) Air Traffic Controller Defined.--
        (1) Civil service retirement system.--Section 8331 of title 5, 
    United States Code, is amended--
            (A) by striking ``and'' at the end of paragraph (27);
            (B) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(29) the term `air traffic controller' or `controller' 
    means--
            ``(A) a controller within the meaning of section 2109(1); 
        and
            ``(B) a civilian employee of the Department of 
        Transportation or the Department of Defense who is the 
        immediate supervisor of a person described in section 
        2109(1)(B).''.
        (2) Federal employees' retirement system.--Section 8401 of 
    title 5, United States Code, is amended--
            (A) by striking ``and'' at the end of paragraph (33);
            (B) by striking the period at the end of paragraph (34) and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(35) the term `air traffic controller' or `controller' 
    means--
            ``(A) a controller within the meaning of section 2109(1); 
        and
            ``(B) a civilian employee of the Department of 
        Transportation or the Department of Defense who is the 
        immediate supervisor of a person described in section 
        2109(1)(B).''.
        (3) Mandatory separation treatment not affected.--
            (A) Civil service retirement system.--Section 8335(a) of 
        title 5, United States Code, is amended by adding at the end 
        the following: ``For purposes of this subsection, the term `air 
        traffic controller' or `controller' has the meaning given to it 
        under section 8331(29)(A).''.
            (B) Federal employees' retirement system.--Section 8425(a) 
        of title 5, United States Code, is amended by adding at the end 
        the following: ``For purposes of this subsection, the term `air 
        traffic controller' or `controller' has the meaning given to it 
        under section 8401(35)(A).''.
    (b) Modified Annuity Computation Rule for Certain Air Traffic 
Controllers Under FERS.--
        (1) In general.--Section 8415 of title 5, United States Code, 
    is amended--
            (A) by redesignating subsections (e) through (j) as 
        subsections (f) through (k), respectively, and by redesignating 
        the second subsection (i) as subsection (l); and
            (B) by inserting after subsection (d) the following:
    ``(e) The annuity of an air traffic controller or former air 
traffic controller retiring under section 8412(a) is computed under 
subsection (a), except that if the individual has had at least 5 years 
of service as an air traffic controller as defined by section 
2109(1)(A)(i), so much of the annuity as is computed with respect to 
such type of service shall be computed by multiplying 1\7/10\ percent 
of the individual's average pay by the years of such service.''.
        (2) Conforming amendments.--(A) Section 8422(d)(2) of title 5, 
    United States Code, is amended by striking ``8415(i)'' and 
    inserting ``8415(j)''.
        (B) Section 8452(d)(1) of such title is amended by striking 
    ``subsection (f)'' and inserting ``subsection (g)''.
        (C) Section 8468(b)(1)(A) of such title is amended by striking 
    ``through (g)'' and inserting ``through (h)''.
        (D) Section 302(a) of the Federal Employees' Retirement System 
    Act of 1986 (5 U.S.C. 8331 note) is amended--
            (i) in paragraph (1)(D)(VI), by striking ``subsection (g)'' 
        and inserting ``subsection (h)'';
            (ii) in paragraph (9), by striking ``8415(f)'' and 
        inserting ``8415(g)''; and
            (iii) in paragraph (12)(B)(ii), by striking ``through (f)'' 
        and inserting ``through (g)''.
    (c) Effective Date.--
        (1) In general.--This section and the amendments made by this 
    section--
            (A) shall take effect on the 60th day after the date of 
        enactment of this Act; and
            (B) shall apply with respect to--
                (i) any annuity entitlement to which is based on an 
            individual's separation from service occurring on or after 
            the effective date of this section; and
                (ii) any service performed by any such individual 
            before, on, or after the effective date of this section, 
            subject to paragraph (2).
        (2) Special rule.--
            (A) Deposit requirement.--For purposes of determining 
        eligibility for immediate retirement under section 8412(e) of 
        title 5, United States Code, the amendment made by subsection 
        (a)(2) shall, with respect to any service described in 
        subparagraph (B), be disregarded unless there is deposited into 
        the Civil Service Retirement and Disability Fund, with respect 
        to such service, in such time, form, and manner as the Office 
        of Personnel Management by regulation requires, an amount equal 
        to the amount by which--
                (i) the deductions from pay which would have been 
            required for such service if the amendments made by 
            subsection (a)(2) had been in effect when such service was 
            performed, exceeds
                (ii) the unrefunded deductions or deposits actually 
            made under subchapter II of chapter 84 of such title with 
            respect to such service.
        An amount under this subparagraph shall include interest, 
        computed under paragraphs (2) and (3) of section 8334(e) of 
        such title 5.
            (B) Prior service described.--This paragraph applies with 
        respect to any service performed by an individual before the 
        effective date of this section as an employee described in 
        section 8401(35)(B) of title 5, United States Code (as amended 
        by subsection (a)(2)).

SEC. 227. DESIGN ORGANIZATION CERTIFICATES.

    (a) General Authority To Issue Certificates.--Effective on the last 
day of the 7-year period beginning on the date of enactment of this 
Act, section 44702(a) is amended by inserting ``design organization 
certificates,'' after ``airman certificates,''.
    (b) Design Organization Certificates.--
        (1) Plan.--Not later than 4 years after the date of enactment 
    of this Act, the Administrator of the Federal Aviation 
    Administration 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 
    plan for the development and oversight of a system for 
    certification of design organizations to certify compliance with 
    the requirements and minimum standards prescribed under section 
    44701(a) of title 49, United States Code, for the type 
    certification of aircraft, aircraft engines, propellers, or 
    appliances.
        (2) Issuance of certificates.--Section 44704 is amended by 
    adding at the end the following:
    ``(e) Design Organization Certificates.--
        ``(1) Issuance.--Beginning 7 years after the date of enactment 
    of this subsection, the Administrator may issue a design 
    organization certificate to a design organization to authorize the 
    organization to certify compliance with the requirements and 
    minimum standards prescribed under section 44701(a) for the type 
    certification of aircraft, aircraft engines, propellers, or 
    appliances.
        ``(2) Applications.--On receiving an application for a design 
    organization certificate, the Administrator shall examine and rate 
    the design organization submitting the application, in accordance 
    with regulations to be prescribed by the Administrator, to 
    determine whether the design organization has adequate engineering, 
    design, and testing capabilities, standards, and safeguards to 
    ensure that the product being certificated is properly designed and 
    manufactured, performs properly, and meets the regulations and 
    minimum standards prescribed under section 44701(a).
        ``(3) Issuance of type certificates based on design 
    organization certification.--The Administrator may rely on 
    certifications of compliance by a design organization when making a 
    finding under subsection (a).
        ``(4) Public safety.--The Administrator shall include in a 
    design organization certificate issued under this subsection terms 
    required in the interest of safety.
        ``(5) No effect on power of revocation.--Nothing in this 
    subsection affects the authority of the Secretary of Transportation 
    to revoke a certificate.''.
    (c) Reinspection and Reexamination.--Section 44709(a) is amended by 
inserting ``design organization, production certificate holder,'' after 
``appliance,''.
    (d) Prohibitions.--Section 44711(a)(7) is amended by striking 
``agency'' and inserting ``agency, design organization certificate, ''.
    (e) Conforming Amendments.--
        (1) Section heading.--Section 44704 is amended by striking the 
    section designation and heading and inserting the following:

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

        (2) Chapter analysis.--The analysis for chapter 447 is amended 
    by striking the item relating to section 44704 and inserting the 
    following:

``44704. Type certificates, production certificates, airworthiness 
          certificates, and design organization certificates.''.

SEC. 228. JUDICIAL REVIEW.

    The first sentence of section 46110(a) is amended--
        (1) by striking ``safety''; and
        (2) by striking ``under this part'' and inserting ``in whole or 
    in part under this part, part B, or subsection (l) or (s) of 
    section 114''.

SEC. 229. OVERFLIGHT FEES.

    (a) Adoption and Legalization of Certain Rules.--
        (1) Applicability and effect of certain law.--Notwithstanding 
    section 141(d)(1) of the Aviation and Transportation Security Act 
    (49 U.S.C. 44901 note), section 45301(b)(1)(B) of title 49, United 
    States Code, is deemed to apply to and to have effect with respect 
    to the authority of the Administrator of the Federal Aviation 
    Administration with respect to the interim final rule and final 
    rule, relating to overflight fees, issued by the Administrator on 
    May 30, 2000, and August 13, 2001, respectively.
        (2) Adoption and legalization.--The interim final rule and 
    final rule referred to in subsection (a), including the fees issued 
    pursuant to those rules, are adopted, legalized, and confirmed as 
    fully to all intents and purposes as if the same had, by prior Act 
    of Congress, been specifically adopted, authorized, and directed as 
    of the date those rules were originally issued.
        (3) Fees to which applicable.--This subsection applies to fees 
    assessed after November 19, 2001, and before April 8, 2003, and 
    fees collected after the requirements of subsection (b) have been 
    met.
    (b) Deferred Collection of Fees.--The Administrator shall defer 
collecting fees under section 45301(a)(1) of title 49, United States 
Code, until the Administrator (1) reports to Congress responding to the 
issues raised by the court in Air Transport Association of Canada v. 
Federal Aviation Administration and Administrator, FAA, decided on 
April 8, 2003, and (2) consults with users and other interested parties 
regarding the consistency of the fees established under such section 
with the international obligations of the United States.
    (c) Enforcement.--The Administrator shall take an appropriate 
enforcement action under subtitle VII of title 49, United States Code, 
against any user that does not pay a fee under section 45301(a)(1) of 
such title.

                    TITLE III--ENVIRONMENTAL PROCESS
             Subtitle A--Aviation Development Streamlining

SEC. 301. SHORT TITLE.

    This title may be cited as ``Aviation Streamlining Approval Process 
Act of 2003''.

SEC. 302. FINDINGS.

    Congress finds that--
        (1) airports play a major role in interstate and foreign 
    commerce;
        (2) congestion and delays at our Nation's major airports have a 
    significant negative impact on our Nation's economy;
        (3) airport capacity enhancement projects at congested airports 
    are a national priority and should be constructed on an expedited 
    basis;
        (4) airport capacity enhancement projects must include an 
    environmental review process that provides local citizenry an 
    opportunity for consideration of and appropriate action to address 
    environmental concerns; and
        (5) the Federal Aviation Administration, airport authorities, 
    communities, and other Federal, State, and local government 
    agencies must work together to develop a plan, set and honor 
    milestones and deadlines, and work to protect the environment while 
    sustaining the economic vitality that will result from the 
    continued growth of aviation.

SEC. 303. AIRPORT CAPACITY ENHANCEMENT.

    Section 40104 is amended by adding at the end the following:
    ``(c) Airport Capacity Enhancement Projects at Congested 
Airports.--In carrying out subsection (a), the Administrator shall take 
action to encourage the construction of airport capacity enhancement 
projects at congested airports as those terms are defined in section 
47176.''.

SEC. 304. AVIATION PROJECT STREAMLINING.

    (a) In General.--Chapter 471 is amended by inserting after 
subchapter II the following:

          ``SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

``Sec. 47171. Expedited, coordinated environmental review process

    ``(a) Aviation Project Review Process.--The Secretary of 
Transportation shall develop and implement an expedited and coordinated 
environmental review process for airport capacity enhancement projects 
at congested airports, aviation safety projects, and aviation security 
projects that--
        ``(1) provides for better coordination among the Federal, 
    regional, State, and local agencies concerned with the preparation 
    of environmental impact statements or environmental assessments 
    under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
    et seq.);
        ``(2) provides that all environmental reviews, analyses, 
    opinions, permits, licenses, and approvals that must be issued or 
    made by a Federal agency or airport sponsor for such a project will 
    be conducted concurrently, to the maximum extent practicable; and
        ``(3) provides that any environmental review, analysis, 
    opinion, permit, license, or approval that must be issued or made 
    by a Federal agency or airport sponsor for such a project will be 
    completed within a time period established by the Secretary, in 
    cooperation with the agencies identified under subsection (d) with 
    respect to the project.
    ``(b) Aviation Projects Subject to a Streamlined Environmental 
Review Process.--
        ``(1) Airport capacity enhancement projects at congested 
    airports.--An airport capacity enhancement project at a congested 
    airport shall be subject to the coordinated and expedited 
    environmental review process requirements set forth in this 
    section.
        ``(2) Aviation safety and aviation security projects.--
            ``(A) In general.--The Administrator of the Federal 
        Aviation Administration may designate an aviation safety 
        project or aviation security project for priority environmental 
        review. The Administrator may not delegate this designation 
        authority. A designated project shall be subject to the 
        coordinated and expedited environmental review process 
        requirements set forth in this section.
            ``(B) Project designation criteria.--The Administrator 
        shall establish guidelines for the designation of an aviation 
        safety project or aviation security project for priority 
        environmental review. Such guidelines shall provide for 
        consideration of--
                ``(i) the importance or urgency of the project;
                ``(ii) the potential for undertaking the environmental 
            review under existing emergency procedures under the 
            National Environmental Policy Act of 1969 (42 U.S.C. 4321 
            et seq.);
                ``(iii) the need for cooperation and concurrent reviews 
            by other Federal or State agencies;
                ``(iv) the prospect for undue delay if the project is 
            not designated for priority review; and
                ``(v) for aviation security projects, the views of the 
            Department of Homeland Security.
    ``(c) High Priority of and Agency Participation in Coordinated 
Reviews.--
        ``(1) High priority for environmental reviews.--Each Federal 
    agency with jurisdiction over an environmental review, analysis, 
    opinion, permit, license, or approval shall accord any such review, 
    analysis, opinion, permit, license, or approval involving an 
    airport capacity enhancement project at a congested airport or a 
    project designated under subsection (b)(2) the highest possible 
    priority and conduct the review, analysis, opinion, permit, 
    license, or approval expeditiously.
        ``(2) Agency participation.--Each Federal agency described in 
    subsection (d) shall formulate and implement administrative, 
    policy, and procedural mechanisms to enable the agency to 
    participate in the coordinated environmental review process under 
    this section and to ensure completion of environmental reviews, 
    analyses, opinions, permits, licenses, and approvals described in 
    subsection (a) in a timely and environmentally responsible manner.
    ``(d) Identification of Jurisdictional Agencies.--With respect to 
each airport capacity enhancement project at a congested airport or a 
project designated under subsection (b)(2), the Secretary shall 
identify, as soon as practicable, all Federal and State agencies that 
may have jurisdiction over environmental-related matters that may be 
affected by the project or may be required by law to conduct an 
environmental-related review or analysis of the project or determine 
whether to issue an environmental-related permit, license, or approval 
for the project.
    ``(e) State Authority.--Under a coordinated review process being 
implemented under this section by the Secretary with respect to a 
project at an airport within the boundaries of a State, the Governor of 
the State, consistent with State law, may choose to participate in such 
process and provide that all State agencies that have jurisdiction over 
environmental-related matters that may be affected by the project or 
may be required by law to conduct an environmental-related review or 
analysis of the project or determine whether to issue an environmental-
related permit, license, or approval for the project, be subject to the 
process.
    ``(f) Memorandum of Understanding.--The coordinated review process 
developed under this section may be incorporated into a memorandum of 
understanding for a project between the Secretary and the heads of 
other Federal and State agencies identified under subsection (d) with 
respect to the project and, if applicable, the airport sponsor.
    ``(g) Use of Interagency Environmental Impact Statement Teams.--
        ``(1) In general.--The Secretary may utilize an interagency 
    environmental impact statement team to expedite and coordinate the 
    coordinated environmental review process for a project under this 
    section. When utilizing an interagency environmental impact 
    statement team, the Secretary shall invite Federal, State and 
    Tribal agencies with jurisdiction by law, and may invite such 
    agencies with special expertise, to participate on an interagency 
    environmental impact statement team.
        ``(2) Responsibility of interagency environmental impact 
    statement team.--Under a coordinated environmental review process 
    being implemented under this section, the interagency environmental 
    impact statement team shall assist the Federal Aviation 
    Administration in the preparation of the environmental impact 
    statement. To facilitate timely and efficient environmental review, 
    the team shall agree on agency or Tribal points of contact, 
    protocols for communication among agencies, and deadlines for 
    necessary actions by each individual agency (including the review 
    of environmental analyses, the conduct of required consultation and 
    coordination, and the issuance of environmental opinions, licenses, 
    permits, and approvals). The members of the team may formalize 
    their agreement in a written memorandum.
    ``(h) Lead Agency Responsibility.--The Federal Aviation 
Administration shall be the lead agency for projects designated under 
subsection (b)(2) and airport capacity enhancement projects at 
congested airports and shall be responsible for defining the scope and 
content of the environmental impact statement, consistent with 
regulations issued by the Council on Environmental Quality. Any other 
Federal agency or State agency that is participating in a coordinated 
environmental review process under this section shall give substantial 
deference, to the extent consistent with applicable law and policy, to 
the aviation expertise of the Federal Aviation Administration.
    ``(i) Effect of Failure To Meet Deadline.--
        ``(1) Notification of congress and ceq.--If the Secretary 
    determines that a Federal agency, State agency, or airport sponsor 
    that is participating in a coordinated review process under this 
    section with respect to a project has not met a deadline 
    established under subsection (a)(3) for the project, the Secretary 
    shall notify, within 30 days of the date of such determination, the 
    Committee on Commerce, Science, and Transportation of the Senate, 
    the Committee on Transportation and Infrastructure of the House of 
    Representatives, the Council on Environmental Quality, and the 
    agency or sponsor involved about the failure to meet the deadline.
        ``(2) Agency report.--Not later than 30 days after date of 
    receipt of a notice under paragraph (1), the agency or sponsor 
    involved shall submit a report to the Secretary, the Committee on 
    Transportation and Infrastructure of the House of Representatives, 
    the Committee on Commerce, Science, and Transportation of the 
    Senate, and the Council on Environmental Quality explaining why the 
    agency or sponsor did not meet the deadline and what actions it 
    intends to take to complete or issue the required review, analysis, 
    opinion, permit, license, or approval.
    ``(j) Purpose and Need.--For any environmental review, analysis, 
opinion, permit, license, or approval that must be issued or made by a 
Federal or State agency that is participating in a coordinated review 
process under this section and that requires an analysis of purpose and 
need for the project, the agency, notwithstanding any other provision 
of law, shall be bound by the project purpose and need as defined by 
the Secretary.
    ``(k) Alternatives Analysis.--The Secretary shall determine the 
reasonable alternatives to an airport capacity enhancement project at a 
congested airport or a project designated under subsection (b)(2). Any 
other Federal agency, or State agency that is participating in a 
coordinated review process under this section with respect to the 
project shall consider only those alternatives to the project that the 
Secretary has determined are reasonable.
    ``(l) Solicitation and Consideration of Comments.--In applying 
subsections (j) and (k), the Secretary shall solicit and consider 
comments from interested persons and governmental entities in 
accordance with the National Environmental Policy Act of 1969 (42 
U.S.C. 4371 et seq.).
    ``(m) Monitoring by Task Force.--The Transportation Infrastructure 
Streamlining Task Force, established by Executive Order 13274 (67 Fed. 
Reg. 59449; relating to environmental stewardship and transportation 
infrastructure project reviews), may monitor airport projects that are 
subject to the coordinated review process under this section.

``Sec. 47172. Air traffic procedures for airport capacity enhancement 
            projects at congested airports

    ``(a) In General.--The Administrator of the Federal Aviation 
Administration may consider prescribing flight procedures to avoid or 
minimize potentially significant adverse noise impacts of an airport 
capacity enhancement project at a congested airport that involves the 
construction of new runways or the reconfiguration of existing runways 
during the environmental planning process for the project. If the 
Administrator determines that noise mitigation flight procedures are 
consistent with safe and efficient use of the navigable airspace, the 
Administrator may commit, at the request of the airport sponsor and in 
a manner consistent with applicable Federal law, to prescribing such 
procedures in any record of decision approving the project.
    ``(b) Modification.--Notwithstanding any commitment by the 
Administrator under subsection (a), the Administrator may initiate 
changes to such procedures if necessary to maintain safety and 
efficiency in light of new information or changed circumstances.

``Sec. 47173. Airport funding of FAA staff

    ``(a) Acceptance of Sponsor-Provided Funds.--Notwithstanding any 
other provision of law, the Administrator of the Federal Aviation 
Administration may accept funds from an airport sponsor, including 
funds provided to the sponsor under section 47114(c), to hire 
additional staff or obtain the services of consultants in order to 
facilitate the timely processing, review, and completion of 
environmental activities associated with an airport development 
project.
    ``(b) Administrative Provision.--Instead of payment from an airport 
sponsor from funds apportioned to the sponsor under section 47114, the 
Administrator, with agreement of the sponsor, may transfer funds that 
would otherwise be apportioned to the sponsor under section 47114 to 
the account used by the Administrator for activities described in 
subsection (a).
    ``(c) Receipts Credited as Offsetting Collections.--Notwithstanding 
section 3302 of title 31, any funds accepted under this section, except 
funds transferred pursuant to subsection (b)--
        ``(1) shall be credited as offsetting collections to the 
    account that finances the activities and services for which the 
    funds are accepted;
        ``(2) shall be available for expenditure only to pay the costs 
    of activities and services for which the funds are accepted; and
        ``(3) shall remain available until expended.
    ``(d) Maintenance of Effort.--No funds may be accepted pursuant to 
subsection (a), or transferred pursuant to subsection (b), in any 
fiscal year in which the Federal Aviation Administration does not 
allocate at least the amount it expended in fiscal year 2002 (excluding 
amounts accepted pursuant to section 337 of the Department of 
Transportation and Related Agencies Appropriations Act, 2002 (115 Stat. 
862)) for the activities described in subsection (a).

``Sec. 47174. Authorization of appropriations

    ``In addition to the amounts authorized to be appropriated under 
section 106(k), there is authorized to be appropriated to the Secretary 
of Transportation, out of the Airport and Airway Trust Fund established 
under section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502), $4,200,000 for fiscal year 2004 and for each fiscal year 
thereafter to facilitate the timely processing, review, and completion 
of environmental activities associated with airport capacity 
enhancement projects at congested airports.

``Sec. 47175. Definitions

    ``In this subchapter, the following definitions apply:
        ``(1) Airport sponsor.--The term `airport sponsor' has the 
    meaning given the term `sponsor' under section 47102.
        ``(2) Congested airport.--The term `congested airport' means an 
    airport that accounted for at least 1 percent of all delayed 
    aircraft operations in the United States in the most recent year 
    for which such data is available and an airport listed in table 1 
    of the Federal Aviation Administration's Airport Capacity Benchmark 
    Report 2001.
        ``(3) Airport capacity enhancement project.--The term `airport 
    capacity enhancement project' means--
            ``(A) a project for construction or extension of a runway, 
        including any land acquisition, taxiway, or safety area 
        associated with the runway or runway extension; and
            ``(B) such other airport development projects as the 
        Secretary may designate as facilitating a reduction in air 
        traffic congestion and delays.
        ``(4) Aviation safety project.--The term `aviation safety 
    project' means an aviation project that--
            ``(A) has as its primary purpose reducing the risk of 
        injury to persons or damage to aircraft and property, as 
        determined by the Administrator; and
            ``(B)(i) is needed to respond to a recommendation from the 
        National Transportation Safety Board, as determined by the 
        Administrator; or
            ``(ii) is necessary for an airport to comply with part 139 
        of title 14, Code of Federal Regulations (relating to airport 
        certification).
        ``(5) Aviation security project.--The term `aviation security 
    project' means a security project at an airport required by the 
    Department of Homeland Security.
        ``(6) Federal agency.--The term `Federal agency' means a 
    department or agency of the United States Government.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following:

           ``SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

``47171. Expedited, coordinated environmental review process.
``47172. Air traffic procedures for airport capacity enhancement 
          projects at congested airports.
``47173. Airport funding of FAA staff.
``47174. Authorization of appropriations.
``47175. Definitions.''.

SEC. 305. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

    Section 47106(c) is amended--
        (1) by inserting ``and'' after the semicolon at the end of 
    paragraph (1)(A)(iii) (as added by this Act);
        (2) by striking subparagraph (B) of paragraph (1);
        (3) by redesignating subparagraph (C) of paragraph (1) as 
    subparagraph (B);
        (4) in paragraph (2)(A) by striking ``stage 2'' and inserting 
    ``stage 3'';
        (5) by striking paragraph (4);
        (6) by redesignating paragraph (5) as paragraph (4); and
        (7) in paragraph (4) (as so redesignated) by striking 
    ``(1)(C)'' and inserting ``(1)(B)''.

SEC. 306. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY PROJECTS.

    Section 47504(c)(2) is amended--
        (1) by moving subparagraphs (C) and (D) 2 ems to the right;
        (2) by striking ``and'' at the end of subparagraph (C);
        (3) by striking the period at the end of subparagraph (D) and 
    inserting ``; and''; and
        (4) by adding at the end the following:
            ``(E) to an airport operator of a congested airport (as 
        defined in section 47175) and a unit of local government 
        referred to in paragraph (1)(B) of this subsection to carry out 
        a project to mitigate noise in the area surrounding the airport 
        if the project is included as a commitment in a record of 
        decision of the Federal Aviation Administration for an airport 
        capacity enhancement project (as defined in section 47175) even 
        if that airport has not met the requirements of part 150 of 
        title 14, Code of Federal Regulations.''.

SEC. 307. ISSUANCE OF ORDERS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Transportation shall publish the final Federal 
Aviation Administration Order 1050.1E, Environmental Impacts: Policies 
and Procedures. Not later than 180 days after the date of publication 
of such final order, the Secretary shall publish for public comment the 
revised Federal Aviation Administration Order 5050.4B, Airport 
Environmental Handbook.

SEC. 308. LIMITATIONS.

    Nothing in this subtitle, including any amendment made by this 
title, shall preempt or interfere with--
        (1) any practice of seeking public comment;
        (2) any power, jurisdiction, or authority that a State agency 
    or an airport sponsor has with respect to carrying out an airport 
    capacity enhancement project; and
        (3) any obligation to comply with the provisions of the 
    National Environmental Policy Act of 1969 (42 U.S.C. 4371 et seq.) 
    and the regulations issued by the Council on Environmental Quality 
    to carry out such Act.

SEC. 309. RELATIONSHIP TO OTHER REQUIREMENTS.

    The coordinated review process required under the amendments made 
by this subtitle shall apply to an airport capacity enhancement project 
at a congested airport whether or not the project is designated by the 
Secretary of Transportation as a high-priority transportation 
infrastructure project under Executive Order 13274 (67 Fed. Reg. 59449; 
relating to environmental stewardship and transportation infrastructure 
project reviews).

                       Subtitle B--Miscellaneous

SEC. 321. REPORT ON LONG-TERM ENVIRONMENTAL IMPROVEMENTS.

    (a) In General.--The Secretary of Transportation, in consultation 
with the Administrator of the National Aeronautics and Space 
Administration, shall conduct a study of ways to reduce aircraft noise 
and emissions and to increase aircraft fuel efficiency. The study 
shall--
        (1) explore new operational procedures for aircraft to achieve 
    those goals;
        (2) identify both near-term and long-term options to achieve 
    those goals;
        (3) identify infrastructure changes that would contribute to 
    attainment of those goals;
        (4) identify emerging technologies that might contribute to 
    attainment of those goals;
        (5) develop a research plan for application of such emerging 
    technologies, including new combustor and engine design concepts 
    and methodologies for designing high bypass ratio turbofan engines 
    so as to minimize the effects on climate change per unit of 
    production of thrust and flight speed; and
        (6) develop an implementation plan for exploiting such emerging 
    technologies to attain those goals.
    (b) Report.--The Secretary shall transmit a report on the study to 
the Senate Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transportation and Infrastructure 
within 1 year after the date of enactment of this Act.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $500,000 for fiscal year 2004 to carry 
out this section.

SEC. 322. NOISE DISCLOSURE.

    (a) Noise Disclosure System Implementation Study.--The 
Administrator of the Federal Aviation Administration shall conduct a 
study to determine the feasibility of developing a program under which 
prospective home buyers of property located in the vicinity of an 
airport could be notified of information derived from noise exposure 
maps that may affect the use and enjoyment of the property. The study 
shall assess the scope, administration, usefulness, and burdensomeness 
of any such program, the costs and benefits of such a program, and 
whether participation in such a program should be voluntary or 
mandatory.
    (b) Public Availability of Noise Exposure Maps.--The Administrator 
shall make noise exposure and land use information from noise exposure 
maps available to the public via the Internet on its website in an 
appropriate format.
    (c) Noise Exposure Map.--In this section, the term ``noise exposure 
map'' means a noise exposure map prepared under section 47503 of title 
49, United States Code.

SEC. 323. OVERFLIGHTS OF NATIONAL PARKS.

    (a) In General.--Section 40128 is amended--
        (1) in subsection (a)(1) by inserting ``, as defined by this 
    section,'' after ``lands'' the first place it appears;
        (2) in subsections (b)(3)(A) and (b)(3)(B) by inserting ``over 
    a national park'' after ``operations'';
        (3) in subsection (b)(3)(C) by inserting ``over a national park 
    that are also'' after ``operations'';
        (4) in subsection (b)(3)(D) by striking ``at the park'' and 
    inserting ``over a national park'';
        (5) in subsection (b)(3)(E) by inserting ``over a national 
    park'' after ``operations'' the first place it appears;
        (6) in subsections (c)(2)(A)(i) and (c)(2)(B) by inserting 
    ``over a national park'' after ``operations'';
        (7) in subsection (f)(1) by inserting ``over a national park'' 
    after ``operation'';
        (8) in subsection (f)(4)(A)--
            (A) by striking ``commercial air tour operation'' and 
        inserting ``commercial air tour operation over a national 
        park''; and
            (B) by striking ``park, or over tribal lands,'' and 
        inserting ``park (except the Grand Canyon National Park), or 
        over tribal lands (except those within or abutting the Grand 
        Canyon National Park),'';
        (9) in subsection (f)(4)(B) by inserting ``over a national 
    park'' after ``operation''; and
        (10) in the heading for paragraph (4) of subsection (f) by 
    inserting ``over a national park'' after ``operation''.
    (b) Quiet Technology Rulemaking for Air Tours Over Grand Canyon 
National Park.--
        (1) Deadline for rule.--No later than January 2005, the 
    Secretary of Transportation shall issue a final rule to establish 
    standards for quiet technology that are reasonably achievable at 
    Grand Canyon National Park, based on the Supplemental Notice of 
    Proposed Rulemaking on Noise Limitations for Aircraft Operations in 
    the Vicinity of Grand Canyon National Park, published in the 
    Federal Register on March 24, 2003.
        (2) Resolution of disputes.--Subject to applicable 
    administrative law and procedures, if the Secretary determines that 
    a dispute among interested parties (including outside groups) or 
    government agencies cannot be resolved within a reasonable time 
    frame and could delay finalizing the rulemaking described in 
    subsection (a), or implementation of final standards under such 
    rule, due to controversy over adoption of quiet technology routes, 
    establishment of incentives to encourage adoption of such routes, 
    establishment of incentives to encourage adoption of quite 
    technology, or other measures to achieve substantial restoration of 
    natural quiet, the Secretary shall refer such dispute to a 
    recognized center for environmental conflict resolution.

SEC. 324. NOISE EXPOSURE MAPS.

    Section 47503 is amended--
        (1) in subsection (a) by striking ``1985,'' and inserting ``a 
    forecast period that is at least 5 years in the future''; and
        (2) by striking subsection (b) and inserting the following:
    ``(b) Revised Maps.--If, in an area surrounding an airport, a 
change in the operation of the airport would establish a substantial 
new noncompatible use, or would significantly reduce noise over 
existing noncompatible uses, that is not reflected in either the 
existing conditions map or forecast map currently on file with the 
Federal Aviation Administration, the airport operator shall submit a 
revised noise exposure map to the Secretary showing the new 
noncompatible use or noise reduction.''.

SEC. 325. IMPLEMENTATION OF CHAPTER 4 NOISE STANDARDS.

    Not later than April 1, 2005, the Secretary of Transportation shall 
issue final regulations to implement Chapter 4 noise standards, 
consistent with the recommendations adopted by the International Civil 
Aviation Organization.

SEC. 326. REDUCTION OF NOISE AND EMISSIONS FROM CIVILIAN AIRCRAFT.

    (a) Establishment of Research Program.--From amounts made available 
under section 48102(a) of title 49, United States Code, the Secretary 
of Transportation shall establish a research program related to 
reducing community exposure to civilian aircraft noise or emissions 
through grants or other measures authorized under section 106(l)(6) of 
such title, including reimbursable agreements with other Federal 
agencies. The program shall include participation by educational and 
research institutions that have existing facilities for developing and 
testing noise reduction engine technology.
    (b) Designation of Institute as a Center of Excellence.--The 
Administrator of the Federal Aviation Administration shall designate an 
institution described in subsection (a) as a Center of Excellence for 
Noise and Emission Research.

SEC. 327. SPECIAL RULE FOR AIRPORT IN ILLINOIS.

    (a) In General.--Nothing in this title shall be construed to 
preclude the application of any provision of this Act to the State of 
Illinois or any other sponsor of a new airport proposed to be 
constructed in the State of Illinois.
    (b) Authority of the Governor.--Nothing in this title shall be 
construed to preempt the authority of the Governor of the State of 
Illinois as of August 1, 2001, to approve or disapprove airport 
development projects.

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS
                Subtitle A--Small Community Air Service

SEC. 401. EXEMPTION FROM HOLD-IN REQUIREMENTS.

    Section 41734 is amended by adding at the end the following:
    ``(i) Exemption From Hold-In Requirements.--If, after the date of 
enactment of this subsection, an air carrier commences air 
transportation to an eligible place that is not receiving scheduled 
passenger air service as a result of the failure of the eligible place 
to meet requirements contained in an appropriations Act, the air 
carrier shall not be subject to the requirements of subsections (b) and 
(c) with respect to such air transportation.''.

SEC. 402. ADJUSTMENTS TO ACCOUNT FOR SIGNIFICANTLY INCREASED COSTS.

    (a) In General.--Section 41737 is amended by adding at the end the 
following:
    ``(e) Adjustments to Account for Significantly Increased Costs.--
        ``(1) In general.--If the Secretary determines that air 
    carriers are experiencing significantly increased costs in 
    providing air service or air transportation for which compensation 
    is being paid under this subchapter, the Secretary may increase the 
    rates of compensation payable under this subchapter without regard 
    to any agreement or requirement relating to the renegotiation of 
    contracts or any notice requirement under section 41734.
        ``(2) Readjustment if costs subsequently decline.--If an 
    adjustment is made under paragraph (1), and total unit costs 
    subsequently decrease to at least the total unit cost reflected in 
    the compensation rate, then the Secretary may reverse the 
    adjustment previously made under paragraph (1) without regard to 
    any agreement or requirement relating to the renegotiation of 
    contracts or any notice requirement under section 41734.
        ``(3) Significantly increased costs defined.--In this 
    subsection, the term `significantly increased costs' means a total 
    unit cost increase (but not increases in individual unit costs) of 
    10 percent or more in relation to the total unit cost reflected in 
    the compensation rate, based on the carrier's internal audit of its 
    financial statements if such cost increase is incurred for a period 
    of at least 2 consecutive months.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 30 days after the date of enactment of this Act.

SEC. 403. JOINT PROPOSALS.

    Section 41740 is amended by inserting ``, including joint fares,'' 
after ``joint proposals''.

SEC. 404. ESSENTIAL AIR SERVICE AUTHORIZATION.

    Section 41742 is amended--
        (1) in subsection (a)(2)--
            (A) by striking ``$15,000,000'' and inserting 
        ``$77,000,000''; and
            (B) by inserting before the period at the end ``of which 
        not more than $12,000,000 per fiscal year may be used for the 
        marketing incentive program for communities and for State 
        marketing assistance'';
        (2) by adding at the end of subsection (a) the following:
        ``(3) Authorization for additional employees.--In addition to 
    amounts authorized under paragraphs (1) and (2), there are 
    authorized to be appropriated such sums as may be necessary for the 
    Secretary of Transportation to hire and employ 4 additional 
    employees for the office responsible for carrying out the essential 
    air service program.''; and
        (3) by striking subsection (c).

SEC. 405. COMMUNITY AND REGIONAL CHOICE PROGRAMS.

    Subchapter II of chapter 417 is amended by adding at the end the 
following:

``Sec. 41745. Community and regional choice programs

    ``(a) Alternate Essential Air Service Pilot Program.--
        ``(1) Establishment.--The Secretary of Transportation shall 
    establish an alternate essential air service pilot program in 
    accordance with the requirements of this section.
        ``(2) Assistance to eligible places.--In carrying out the 
    program, the Secretary, instead of paying compensation to an air 
    carrier to provide essential air service to an eligible place, may 
    provide assistance directly to a unit of local government having 
    jurisdiction over the eligible place or a State within the 
    boundaries of which the eligible place is located.
        ``(3) Use of assistance.--A unit of local government or State 
    receiving assistance for an eligible place under the program may 
    use the assistance for any of the following purposes:
            ``(A) To provide assistance to air carriers that will use 
        smaller equipment to provide the service and to consider 
        increasing the frequency of service using such smaller 
        equipment if the Secretary determines that passenger safety 
        would not be compromised by the use of such smaller equipment 
        and if the State or unit of local government waives the minimum 
        service requirements under section 41732(b).
            ``(B) To provide assistance to an air carrier to provide 
        on-demand air taxi service to and from the eligible place.
            ``(C) To provide assistance to a person to provide 
        scheduled or on-demand surface transportation to and from the 
        eligible place and an airport in another place.
            ``(D) In combination with other units of local government 
        in the same region, to provide transportation services to and 
        from all the eligible places in that region at an airport or 
        other transportation center that can serve all the eligible 
        places in that region.
            ``(E) To purchase aircraft to provide transportation to and 
        from the eligible place or to purchase a fractional share in an 
        aircraft to provide such transportation after the effective 
        date of a rule the Secretary issues relating to fractional 
        ownership.
            ``(F) To pay for other transportation or related services 
        that the Secretary may permit.
    ``(b) Community Flexibility Pilot Program.--
        ``(1) In general.--The Secretary shall establish a pilot 
    program for not more than 10 eligible places or consortia of units 
    of local government.
        ``(2) Election.--Under the program, the sponsor of an airport 
    serving an eligible place may elect to forego any essential air 
    service for which compensation is being provided under this 
    subchapter for a 10-year period in exchange for a grant from the 
    Secretary equal in value to twice the compensation paid to provide 
    such service in the most recent 12-month period.
        ``(3) Grant.--Notwithstanding any other provision of law, the 
    Secretary shall make a grant to each airport sponsor participating 
    in the program for use on any project that--
            ``(A) is eligible for assistance under chapter 471 and 
        complies with the requirements of that chapter;
            ``(B) is located on the airport property; or
            ``(C) will improve airport facilities in a way that would 
        make such facilities more usable for general aviation.
    ``(c) Fractionally Owned Aircraft.--After the effective date of the 
rule referred to in subsection (a)(3)(E), only those operating rules 
that relate to an aircraft that is fractionally owned apply when an 
aircraft described in subsection (a)(3)(E) is used to provide 
transportation described in subsection (a)(3)(E).
    ``(d) Applications.--
        ``(1) In general.--An entity seeking to participate in a 
    program under this section shall submit to the Secretary an 
    application in such form and containing such information as the 
    Secretary may require.
        ``(2) Required information.--At a minimum, the application 
    shall include--
            ``(A) a statement of the amount of compensation or 
        assistance required; and
            ``(B) a description of how the compensation or assistance 
        will be used.
    ``(e) Participation Requirements.--An eligible place for which 
compensation or assistance is provided under this section in a fiscal 
year shall not be eligible in that fiscal year for the essential air 
service that it would otherwise be entitled to under this subchapter.
    ``(f) Subsequent Participation.--A unit of local government 
participating in the program under this subsection (a) in a fiscal year 
shall not be prohibited from participating in the basic essential air 
service program under this subchapter in a subsequent fiscal year if 
such unit is otherwise eligible to participate in such program.
    ``(g) Funding.--Amounts appropriated or otherwise made available to 
carry out the essential air service program under this subchapter shall 
be available to carry out this section.''.

SEC. 406. CODE-SHARING PILOT PROGRAM.

    (a) In General.--The Secretary of Transportation shall establish a 
pilot program under which the Secretary may require air carriers 
providing service with compensation under subchapter II of chapter 417 
of title 49, United States Code, and major air carriers (as defined in 
section 41716(a)(2) of such title) serving large hub airports (as 
defined in section 40102 of such title) to participate in multiple 
code-share arrangements consistent with normal industry practice 
whenever and wherever the Secretary determines that such multiple code-
sharing arrangements would improve air transportation services.
    (b) Limitation.--The Secretary may not require air carriers to 
participate in the pilot program under this section for more than 10 
communities receiving service under subchapter II of chapter 417 of 
title 49, United States Code.

SEC. 407. TRACKING SERVICE.

    Subchapter II of chapter 417 is further amended by adding at the 
end the following:

``Sec. 41746. Tracking service

    ``The Secretary of Transportation shall require a carrier that 
provides essential air service to an eligible place and that receives 
compensation for such service under this subchapter to report not less 
than semiannually--
        ``(1) the percentage of flights to and from the place that 
    arrive on time as defined by the Secretary; and
        ``(2) such other information as the Secretary considers 
    necessary to evaluate service provided to passengers traveling to 
    and from such place.''.

SEC. 408. EAS LOCAL PARTICIPATION PROGRAM.

    (a) In General.--Subchapter II of chapter 417 is further amended by 
adding at the end the following:

``Sec. 41747. EAS local participation program

    ``(a) In General.--The Secretary of Transportation shall establish 
a pilot program under which not more than 10 designated essential air 
service communities located in proximity to hub airports are required 
to assume 10 percent of their essential air service subsidy costs for a 
4-year period.
    ``(b) Designation of Communities.--
        ``(1) In general.--The Secretary may not designate any 
    community under this section unless it is located within 100 miles 
    by road of a hub airport and is not located in a noncontiguous 
    State. In making the designation, the Secretary may take into 
    consideration the total traveltime between a community and the 
    nearest hub airport, taking into account terrain, traffic, weather, 
    road conditions, and other relevant factors.
        ``(2) One community per state.--The Secretary may not 
    designate--
            ``(A) more than 1 community per State under this section; 
        or
            ``(B) a community in a State in which another community 
        that is eligible to participate in the essential air service 
        program has elected not to participate in the essential air 
        service program as part of a pilot program under section 41745.
    ``(c) Appeal of Designation.--A community may appeal its 
designation under this section. The Secretary may withdraw the 
designation of a community under this section based on--
        ``(1) the airport sponsor's ability to pay; or
        ``(2) the relative lack of financial resources in a community, 
    based on a comparison of the median income of the community with 
    other communities in the State.
    ``(d) Non-Federal Share.--
        ``(1) Non-federal amounts.--For purposes of this section, the 
    non-Federal portion of the essential air service subsidy may be 
    derived from contributions in kind, or through reduction in the 
    amount of the essential air service subsidy through reduction of 
    air carrier costs, increased ridership, prepurchase of tickets, or 
    other means. The Secretary shall provide assistance to designated 
    communities in identifying potential means of reducing the amount 
    of the subsidy without adversely affecting air transportation 
    service to the community.
        ``(2) Application with other matching requirements.--This 
    section shall apply to the Federal share of essential air service 
    provided this subchapter, after the application of any other non-
    Federal share matching requirements imposed by law.
    ``(e) Eligibility for Other Programs Not Affected.--Nothing in this 
section affects the eligibility of a community or consortium of 
communities, an airport sponsor, or any other person to participate in 
any program authorized by this subchapter. A community designated under 
this section may participate in any program (including pilot programs) 
authorized by this subchapter for which it is otherwise eligible--
        ``(1) without regard to any limitation on the number of 
    communities that may participate in that program; and
        ``(2) without reducing the number of other communities that may 
    participate in that program.
    ``(f) Secretary to Report to Congress on Impact.--The Secretary 
shall transmit a report to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives on--
        ``(1) the economic condition of communities designated under 
    this section before their designation;
        ``(2) the impact of designation under this section on such 
    communities at the end of each of the 3 years following their 
    designation; and
        ``(3) the impact of designation on air traffic patterns 
    affecting air transportation to and from communities designated 
    under this section.''.
    (b) Conforming Amendment.--The analysis for subchapter II of 
chapter 417 is amended by adding at the end the following:

``41745. Community and regional choice programs.
``41746. Tracking service.
``41747. EAS local participation program.''.

SEC. 409. MEASUREMENT OF HIGHWAY MILES FOR PURPOSES OF DETERMINING 
              ELIGIBILITY OF ESSENTIAL AIR SERVICE SUBSIDIES.

    (a) Request for Secretarial Review.--An eligible place (as defined 
in section 41731 of title 49, United States Code) with respect to which 
the Secretary has, in the 2-year period ending on the date of enactment 
of this Act, eliminated (or tentatively eliminated) compensation for 
essential air service to such place, or terminated (or tentatively 
terminated) the compensation eligibility of such place for essential 
air service, under section 332 of the Department of Transportation and 
Related Agencies Appropriations Act, 2000 (49 U.S.C. 41731 note), 
section 205 of the Wendell H. Ford Aviation Investment and Reform Act 
for the 21st Century (49 U.S.C. 41731 note), or any prior law of 
similar effect based on the highway mileage of such place from the 
nearest hub airport (as defined in section 40102 of such title), may 
request the Secretary to review such action.
    (b) Determination of Mileage.--In reviewing an action under 
subsection (a), the highway mileage between an eligible place and the 
nearest medium hub airport or large hub airport is the highway mileage 
of the most commonly used route between the place and the medium hub 
airport or large hub airport. In identifying such route, the Secretary 
shall identify the most commonly used route for a community by--
        (1) consulting with the Governor of a State or the Governor's 
    designee; and
        (2) considering the certification of the Governor of a State or 
    the Governor's designee as to the most commonly used route.
    (c) Eligibility Determination.--Not later than 60 days after 
receiving a request under subsection (a), the Secretary shall--
        (1) determine whether the eligible place would have been 
    subject to an elimination of compensation eligibility for essential 
    air service, or termination of the eligibility of such place for 
    essential air service, under the provisions of law referred to in 
    subsection (a) based on the determination of the highway mileage of 
    such place from the nearest medium hub airport or large hub airport 
    under subsection (b); and
        (2) issue a final order with respect to the eligibility of such 
    place for essential air service compensation under subchapter II of 
    chapter 417 of title 49, United States Code.
    (d) Limitation on Period of Final Order.--A final order issued 
under subsection (c) shall terminate on September 30, 2007.

SEC. 410. INCENTIVE PROGRAM.

    (a) Purposes.--The purposes of this section are--
        (1) to enable essential air service communities to increase 
    boardings and the level of passenger usage of airport facilities at 
    an eligible place by providing technical, financial, and other 
    marketing assistance to such communities and to States;
        (2) to reduce subsidy costs under subchapter II of this chapter 
    as a consequence of such increased usage; and
        (3) to provide such communities with opportunities to obtain, 
    retain, and improve transportation services.
    (b) Marketing Program.--Subchapter II of chapter 417 is further 
amended by adding at the end the following:

``Sec. 41748. Marketing program

    ``(a) In General.--The Secretary of Transportation shall establish 
a marketing incentive program for eligible places that receive 
subsidized service by an air carrier under section 41733. Under the 
program, the sponsor of the airport serving such an eligible place may 
receive a grant of not more than $50,000 in a fiscal year to develop 
and implement a marketing plan to increase passenger boardings and the 
level of passenger usage of its airport facilities.
    ``(b) Matching Requirement; Success Bonuses--
        ``(1) In general.--Except as provided in paragraphs (2) and 
    (3), not less than 25 percent of the publicly financed costs 
    associated with a marketing plan to be developed and implemented 
    under this section shall come from non-Federal sources. For 
    purposes of this section--
            ``(A) the non-Federal portion of the publicly financed 
        costs may be derived from contributions in kind; and
            ``(B) matching contributions from a State or unit of local 
        government may not be derived, directly or indirectly, from 
        Federal funds, but the use by the State or unit of local 
        government of proceeds from the sale of bonds to provide the 
        matching contribution is not considered to be a contribution 
        derived directly or indirectly from Federal funds, without 
        regard to the Federal income tax treatment of interest paid on 
        those bonds or the Federal income tax treatment of those bonds.
        ``(2) Bonus for 25-percent increase in usage.--Except as 
    provided in paragraph (3), if, after any 12-month period during 
    which a marketing plan has been in effect under this section with 
    respect to an eligible place, the Secretary determines that the 
    marketing plan has increased average monthly boardings, or the 
    level of passenger usage, at the airport serving the eligible 
    place, by 25 percent or more, then only 10 percent of the publicly 
    financed costs associated with the marketing plan shall be required 
    to come from non-Federal sources under this subsection for the 
    following 12-month period.
        ``(3) Bonus for 50-percent increase in usage.--If, after any 
    12-month period during which a marketing plan has been in effect 
    under this section with respect to an eligible place, the Secretary 
    determines that the marketing plan has increased average monthly 
    boardings, or the level of passenger usage, at the airport serving 
    the eligible place, by 50 percent or more, then no portion of the 
    publicly financed costs associated with the marketing plan shall be 
    required to come from non-Federal sources under this subsection for 
    the following 12-month period.''.
    (b) Conforming Amendment.--The analysis for subchapter II of 
chapter 417 is further amended by adding at the end the following:

``41748. Marketing program.''.

SEC. 411. NATIONAL COMMISSION ON SMALL COMMUNITY AIR SERVICE.

    (a) Establishment.--There is established a commission to be known 
as the ``National Commission on Small Community Air Service'' (in this 
section referred to as the ``Commission'').
    (b) Membership.--
        (1) Composition.--The Commission shall be composed of nine 
    members of whom--
            (A) three members shall be appointed by the Secretary;
            (B) two members shall be appointed by the majority leader 
        of the Senate;
            (C) one member shall be appointed by the minority leader of 
        the Senate;
            (D) two members shall be appointed by the Speaker of the 
        House of Representatives; and
            (E) one member shall be appointed by the minority leader of 
        the House of Representatives.
        (2) Qualifications.--Of the members appointed by the Secretary 
    under paragraph (1)(A)--
            (A) one member shall be a representative of a regional 
        airline;
            (B) one member shall be a representative of a small hub 
        airport or nonhub airport (as such terms are defined in section 
        40102 of title 49, United States Code); and
            (C) one member shall be a representative of a State 
        aviation agency.
        (3) Terms.--Members shall be appointed for the life of the 
    Commission.
        (4) Vacancies.--A vacancy in the Commission shall be filled in 
    the manner in which the original appointment was made.
        (5) Travel expenses.--Members 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.
    (c) Chairperson.--The Secretary shall designate, from among the 
individuals appointed under subsection (b)(1), an individual to serve 
as chairperson of the Commission.
    (d) Duties.--
        (1) Study.--The Commission shall undertake a study of--
            (A) the challenges faced by small communities in the United 
        States with respect to retaining and enhancing their scheduled 
        commercial air service; and
            (B) whether the existing Federal programs charged with 
        helping small communities are adequate for them to retain and 
        enhance their existing air service.
        (2) Essential air service communities.--In conducting the 
    study, the Commission shall pay particular attention to the state 
    of scheduled commercial air service in communities currently served 
    by the essential air service program.
    (e) Recommendations.--Based on the results of the study under 
subsection (d), the Commission shall make such recommendations as it 
considers necessary to--
        (1) improve the state of scheduled commercial air service at 
    small communities in the United States, especially communities 
    described in subsection (d)(2); and
        (2) improve the ability of small communities to retain and 
    enhance their existing air service.
    (f) Report.--Not later than 6 months after the date on which 
initial appointments of members to the Commission are completed, the 
Commission shall transmit to the President and Congress a report on the 
activities of the Commission, including recommendations made by the 
Commission under subsection (e).
    (g) Commission Panels.--The chairperson of the Commission shall 
establish such panels consisting of members of the Commission as the 
chairperson determines appropriate to carry out the functions of the 
Commission.
    (h) Commission Personnel Matters.--
        (1) Staff.--The Commission may appoint and fix the pay of such 
    personnel as it considers appropriate.
        (2) Staff of federal agencies.--Upon request of the chairperson 
    of the Commission, the head of any department or agency of the 
    United States may detail, on a reimbursable basis, any of the 
    personnel of that department or agency to the Commission to assist 
    it in carrying out its duties under this section.
        (3) Other staff and support.--Upon the request of the 
    Commission, or a panel of the Commission, the Secretary shall 
    provide the Commission or panel with professional and 
    administrative staff and other support, on a reimbursable basis, to 
    assist the Commission or panel in carrying out its 
    responsibilities.
    (i) Obtaining Official Data.--The Commission may secure directly 
from any department or agency of the United States information (other 
than information required by any statute of the United States to be 
kept confidential by such department or agency) necessary for the 
Commission to carry out its duties under this section. Upon request of 
the chairperson of the Commission, the head of that department or 
agency shall furnish such nonconfidential information to the 
Commission.
    (j) Termination.--The Commission shall terminate on the 30th day 
following the date of transmittal of the report under subsection (f).
    (k) Applicability of the Federal Advisory Committee Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Commission.
    (l) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $250,000 to be used to fund the 
Commission.

SEC. 412. SMALL COMMUNITY AIR SERVICE.

    Section 41743 is amended--
        (1) in the heading of subsection (a) by striking ``Pilot'';
        (2) in subsection (a) by striking ``pilot'';
        (3) in subsection (c)--
            (A) by striking paragraph (3) and inserting the following:
        ``(3) State limit.--Not more than 4 communities or consortia of 
    communities, or a combination thereof, from the same State may be 
    selected to participate in the program in any fiscal year.'';
            (B) by adding at the end of paragraph (4) the following: 
        ``No community, consortia of communities, nor combination 
        thereof may participate in the program in support of the same 
        project more than once, but any community, consortia of 
        communities, or combination thereof may apply, subsequent to 
        such participation, to participate in the program in support of 
        a different project.''; and
            (C) in paragraph (5)--
                (i) by striking ``and'' at the end of subparagraph (C);
                (ii) by striking the period at the end of subparagraph 
            (D) and inserting ``; and''; and
                (iii) by adding at the end the following:
            ``(E) the assistance will be used in a timely fashion.'';
        (4) in subsection (e)(2)--
            (A) by striking ``and'' the first place it appears and 
        inserting a comma; and
            (B) by inserting after ``2003'' the following ``, and 
        $35,000,000 for each of fiscal years 2004 through 2008''; and
        (5) in subsection (f) by striking ``pilot''.

                       Subtitle B--Miscellaneous

SEC. 421. DATA ON INCIDENTS AND COMPLAINTS INVOLVING PASSENGER AND 
              BAGGAGE SECURITY SCREENING.

    Section 329 is amended by adding at the end the following:
    ``(e) Incidents and Complaints Involving Passenger and Baggage 
Security Screening.--
        ``(1) Publication of data.--The Secretary of Transportation 
    shall publish data on incidents and complaints involving passenger 
    and baggage security screening in a manner comparable to other 
    consumer complaint and incident data.
        ``(2) Monthly reports from secretary of homeland security.--To 
    assist in the publication of data under paragraph (1), the 
    Secretary of Transportation may request the Secretary of Homeland 
    Security to periodically report on the number of complaints about 
    security screening received by the Secretary of Homeland 
    Security.''.

SEC. 422. DELAY REDUCTION ACTIONS.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end the following new section:

``Sec. 41722. Delay reduction actions

    ``(a) Scheduling Reduction Meetings.--The Secretary of 
Transportation may request that air carriers meet with the 
Administrator of the Federal Aviation Administration to discuss flight 
reductions at severely congested airports to reduce overscheduling and 
flight delays during hours of peak operation if--
        ``(1) the Administrator determines that it is necessary to 
    convene such a meeting; and
        ``(2) the Secretary determines that the meeting is necessary to 
    meet a serious transportation need or achieve an important public 
    benefit.
    ``(b) Meeting Conditions.--Any meeting under subsection (a)--
        ``(1) shall be chaired by the Administrator;
        ``(2) shall be open to all scheduled air carriers; and
        ``(3) shall be limited to discussions involving the airports 
    and time periods described in the Administrator's determination.
    ``(c) Flight Reduction Targets.--Before any such meeting is held, 
the Administrator shall establish flight reduction targets for the 
meeting and notify the attending air carriers of those targets not less 
than 48 hours before the meeting.
    ``(d) Delay Reduction Offers.--An air carrier attending the meeting 
shall make any offer to meet a flight reduction target to the 
Administrator rather than to another carrier.
    ``(e) Transcript.--The Administrator shall ensure that a transcript 
of the meeting is kept and made available to the public not later than 
3 business days after the conclusion of the meeting.''.
    (b) Conforming Amendment.--The analysis for chapter 417 is amended 
by striking the item relating to section 41721 and inserting the 
following:

``41721. Reports by carriers on incidents involving animals during air 
          transport.
``41722. Delay reduction actions.''.

SEC. 423. COLLABORATIVE DECISIONMAKING PILOT PROGRAM.

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

``Sec. 40129. Collaborative decisionmaking pilot program

    ``(a) Establishment.--Not later than 90 days after the date of 
enactment of this section, the Administrator of the Federal Aviation 
Administration shall establish a collaborative decisionmaking pilot 
program in accordance with this section.
    ``(b) Duration.--Except as provided in subsection (k), the pilot 
program shall be in effect for a period of 2 years.
    ``(c) Guidelines.--
        ``(1) Issuance.--The Administrator, with the concurrence of the 
    Attorney General, shall issue guidelines concerning the pilot 
    program. Such guidelines, at a minimum, shall--
            ``(A) define a capacity reduction event;
            ``(B) establish the criteria and process for determining 
        when a capacity reduction event exists that warrants the use of 
        collaborative decisionmaking among carriers at airports 
        participating in the pilot program; and
            ``(C) prescribe the methods of communication to be 
        implemented among carriers during such an event.
        ``(2) Views.--The Administrator may obtain the views of 
    interested parties in issuing the guidelines.
    ``(d) Effect of Determination of Existence of Capacity Reduction 
Event.--Upon a determination by the Administrator that a capacity 
reduction event exists, the Administrator may authorize air carriers 
and foreign air carriers operating at an airport participating in the 
pilot program to communicate for a period of time not to exceed 24 
hours with each other concerning changes in their respective flight 
schedules in order to use air traffic capacity most effectively. The 
Administration shall facilitate and monitor such communication. The 
Attorney General, or the Attorney General's designee, may monitor such 
communication.
    ``(e) Selection of Participating Airports.--Not later than 30 days 
after the date on which the Administrator establishes the pilot 
program, the Administrator shall select 2 airports to participate in 
the pilot program from among the most capacity-constrained airports in 
the Nation based on the Administration's Airport Capacity Benchmark 
Report 2001 or more recent data on airport capacity that is available 
to the Administrator. The Administrator shall select an airport for 
participation in the pilot program if the Administrator determines that 
collaborative decisionmaking among air carriers and foreign air 
carriers would reduce delays at the airport and have beneficial effects 
on reducing delays in the national airspace system as a whole.
    ``(f) Eligibility of Air Carriers.--An air carrier or foreign air 
carrier operating at an airport selected to participate in the pilot 
program is eligible to participate in the pilot program if the 
Administrator determines that the carrier has the operational and 
communications capability to participate in the pilot program.
    ``(g) Modification or Termination of Pilot Program at an Airport.--
The Administrator, with the concurrence of the Attorney General, may 
modify or end the pilot program at an airport before the term of the 
pilot program has expired, or may ban an air carrier or foreign air 
carrier from participating in the program, if the Administrator 
determines that the purpose of the pilot program is not being furthered 
by participation of the airport or air carrier or if the Secretary of 
Transportation, with the concurrence of the Attorney General, finds 
that the pilot program or the participation of an air carrier or 
foreign air carrier in the pilot program has had, or is having, an 
adverse effect on competition among carriers.
    ``(h) Antitrust Immunity.--
        ``(1) In general.--Unless, within 5 days after receiving notice 
    from the Secretary of the Secretary's intention to exercise 
    authority under this subsection, the Attorney General submits to 
    the Secretary a written objection to such action, including reasons 
    for such objection, the Secretary may exempt an air carrier's or 
    foreign air carrier's activities that are necessary to participate 
    in the pilot program under this section from the antitrust laws for 
    the sole purpose of participating in the pilot program. Such 
    exemption shall not extend to any discussions, agreements, or 
    activities outside the scope of the pilot program.
        ``(2) Antitrust laws defined.--In this section, the term 
    `antitrust laws' has the meaning given that term in the first 
    section of the Clayton Act (15 U.S.C. 12).
    ``(i) Consultation With Attorney General.--The Secretary shall 
consult with the Attorney General regarding the design and 
implementation of the pilot program, including determining whether a 
limit should be set on the number of occasions collaborative 
decisionmaking could be employed during the initial 2-year period of 
the pilot program.
    ``(j) Evaluation.--
        ``(1) In general.--Before the expiration of the 2-year period 
    for which the pilot program is authorized under subsection (b), the 
    Administrator shall determine whether the pilot program has 
    facilitated more effective use of air traffic capacity and the 
    Secretary, with the concurrence of the Attorney General, shall 
    determine whether the pilot program has had an adverse effect on 
    airline competition or the availability of air services to 
    communities. The Administrator shall also examine whether capacity 
    benefits resulting from the participation in the pilot program of 
    an airport resulted in capacity benefits to other parts of the 
    national airspace system.
        ``(2) Obtaining necessary data.--The Administrator may require 
    participating air carriers and airports to provide data necessary 
    to evaluate the pilot program's impact.
    ``(k) Extension of Pilot Program.--At the end of the 2-year period 
for which the pilot program is authorized, the Administrator, with the 
concurrence of the Attorney General, may continue the pilot program for 
an additional 2 years and expand participation in the program to up to 
7 additional airports if the Administrator determines pursuant to 
subsection (j) that the pilot program has facilitated more effective 
use of air traffic capacity and if the Secretary, with the concurrence 
of the Attorney General, determines that the pilot program has had no 
adverse effect on airline competition or the availability of air 
services to communities. The Administrator shall select the additional 
airports to participate in the extended pilot program in the same 
manner in which airports were initially selected to participate.''.
    (b) Conforming Amendment.--The analysis for chapter 401 is amended 
by adding at the end the following:

``40129. Collaborative decisionmaking pilot program.''.

SEC. 424. COMPETITION DISCLOSURE REQUIREMENT FOR LARGE AND MEDIUM HUB 
              AIRPORTS.

    Section 47107 is amended by adding at the end the following:
    ``(s) Competition Disclosure Requirement.--
        ``(1) In general.--The Secretary of Transportation may approve 
    an application under this subchapter for an airport development 
    project grant for a large hub airport or a medium hub airport only 
    if the Secretary receives assurances that the airport sponsor will 
    provide the information required by paragraph (2) at such time and 
    in such form as the Secretary may require.
        ``(2) Competitive access.--On February 1 and August 1 of each 
    year, an airport that during the previous 6-month period has been 
    unable to accommodate one or more requests by an air carrier for 
    access to gates or other facilities at that airport in order to 
    provide service to the airport or to expand service at the airport 
    shall transmit a report to the Secretary that--
            ``(A) describes the requests;
            ``(B) provides an explanation as to why the requests could 
        not be accommodated; and
            ``(C) provides a time frame within which, if any, the 
        airport will be able to accommodate the requests.
        ``(3) Sunset provision.--This subsection shall cease to be 
    effective beginning October 1, 2008.''.

SEC. 425. SLOT EXEMPTIONS AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT.

    (a) Beyond-Perimeter Exemptions.--Section 41718(a) is amended by 
striking ``12'' and inserting ``24''.
    (b) Within-Perimeter Exemptions.--Section 41718(b) is amended--
        (1) by striking ``12'' and inserting ``20''; and
        (2) by striking ``that were designated as medium hub or smaller 
    airports''.
    (c) Limitations.--
        (1) General exemptions.--Section 41718(c)(2) is amended by 
    striking ``two'' and inserting ``3''.
        (2) Allocation of within-perimeter exemptions.--Section 
    41718(c)(3) is amended--
            (A) in subparagraph (A)--
                (i) by striking ``four'' and inserting ``without regard 
            to the criteria contained in subsection (b)(1), six''; and
                (ii) by striking ``and'' at the end;
            (B) in subparagraph (B)--
                (i) by striking ``eight'' and inserting ``ten''; and
                (ii) by striking the period at the end and inserting 
            ``; and''; and
            (C) by adding at the end the following:
            ``(C) four shall be for air transportation to airports 
        without regard to their size.''.
    (d) Application Procedures.--Section 41718(d) is amended to read as 
follows:
    ``(d) Application Procedures.--The Secretary shall establish 
procedures to ensure that all requests for exemptions under this 
section are granted or denied within 90 days after the date on which 
the request is made.''.

SEC. 426. DEFINITION OF COMMUTER AIRCRAFT.

    (a) In General.--Section 41718 is amended by adding at the end the 
following:
    ``(f) Commuters Defined.--For purposes of aircraft operations at 
Ronald Reagan Washington National Airport under subpart K of part 93 of 
title 14, Code of Federal Regulations, the term `commuters' means 
aircraft operations using aircraft having a certificated maximum 
seating capacity of 76 or less.''.
    (b) Regulations.--The Administrator of the Federal Aviation 
Administration shall revise regulations to take into account the 
amendment made by subsection (a).

SEC. 427. AIRFARES FOR MEMBERS OF THE ARMED FORCES.

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

SEC. 428. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED SERVICE.

    Section 145(c) of the Aviation and Transportation Security Act (49 
U.S.C. 40101 note) is amended by striking ``more than'' and all that 
follows through ``after'' and inserting ``more than 36 months after''.

                        TITLE V--AVIATION SAFETY

SEC. 501. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS.

    Section 44726(a)(1) is amended--
        (1) by striking ``or'' at the end of subparagraph (A);
        (2) by redesignating subparagraph (B) as subparagraph (C);
        (3) by inserting after subparagraph (A) the following:
            ``(B) whose certificate is revoked under subsection (b); 
        or''; and
        (4) in subparagraph (C) (as redesignated by paragraph (2) of 
    this section) by striking ``convicted of such a violation.'' and 
    inserting ``described in subparagraph (A) or (B).''.

SEC. 502. RUNWAY SAFETY STANDARDS.

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

``Sec. 44727. Runway safety areas

    ``(a) Airports in Alaska.--An airport owner or operator in the 
State of Alaska shall not be required to reduce the length of a runway 
or declare the length of a runway to be less than the actual pavement 
length in order to meet standards of the Federal Aviation 
Administration applicable to runway safety areas.
    ``(b) Study.--
        ``(1) In general.--The Secretary shall conduct a study of 
    runways at airports in States other than Alaska to determine which 
    airports are affected by standards of the Federal Aviation 
    Administration applicable to runway safety areas and to assess how 
    operations at those airports would be affected if the owner or 
    operator of the airport is required to reduce the length of a 
    runway or declare the length of a runway to be less than the actual 
    pavement length in order to meet such standards.
        ``(2) Report.--Not later than 9 months after the date of 
    enactment of this section, the Secretary shall transmit to the 
    Committee on Commerce, Science, and Transportation of the Senate 
    and the Committee on Transportation and Infrastructure of the House 
    of Representatives a report containing the results of the study.''.
    (b) Conforming Amendment.--The analysis for chapter 447 is amended 
by adding at the end the following:

``44727. Runway safety areas.''.

SEC. 503. CIVIL PENALTIES.

    (a) Increase in Maximum Civil Penalty.--Section 46301(a) is 
amended--
        (1) by striking ``$1,000'' in paragraph (1) and inserting 
    ``$25,000 (or $1,100 if the person is an individual or small 
    business concern)'';
        (2) by striking ``or'' the last place it appears in paragraph 
    (1)(A);
        (3) by striking ``section)'' in paragraph (1)(A) and inserting 
    ``section), or section 47133'';
        (4) by striking paragraphs (2), (3), (6), and (7) and 
    redesignating paragraphs (4), (5), and (8) as paragraphs (2), (3), 
    and (4), respectively;
        (5) by striking ``41715'' each place it appears in paragraph 
    (2), as redesignated, and inserting ``41719'';
        (6) by striking ``paragraphs (1) and (2)'' in paragraph (4), as 
    redesignated, and inserting ``paragraph (1)''; and
        (7) by adding at the end the following:
        ``(5) Penalties applicable to individuals and small business 
    concerns.--
            ``(A) An individual (except an airman serving as an airman) 
        or small business concern is liable to the Government for a 
        civil penalty of not more than $10,000 for violating--
                ``(i) chapter 401 (except sections 40103(a) and (d), 
            40105, 40106(b), 40116, and 40117), section 44502 (b) or 
            (c), chapter 447 (except sections 44717-44723), or chapter 
            449 (except sections 44902, 44903(d), 44904, and 44907-
            44909) of this title; or
                ``(ii) a regulation prescribed or order issued under 
            any provision to which clause (i) applies.
            ``(B) A civil penalty of not more than $10,000 may be 
        imposed for each violation under paragraph (1) committed by an 
        individual or small business concern related to--
                ``(i) the transportation of hazardous material;
                ``(ii) the registration or recordation under chapter 
            441 of an aircraft not used to provide air transportation;
                ``(iii) a violation of section 44718(d), relating to 
            the limitation on construction or establishment of 
            landfills;
                ``(iv) a violation of section 44725, relating to the 
            safe disposal of life-limited aircraft parts; or
                ``(v) a violation of section 40127 or section 41705, 
            relating to discrimination.
            ``(C) Notwithstanding paragraph (1), the maximum civil 
        penalty for a violation of section 41719 committed by an 
        individual or small business concern shall be $5,000 instead of 
        $1,000.
            ``(D) Notwithstanding paragraph (1), the maximum civil 
        penalty for a violation of section 41712 (including a 
        regulation prescribed or order issued under such section) or 
        any other regulation prescribed by the Secretary by an 
        individual or small business concern that is intended to afford 
        consumer protection to commercial air transportation passengers 
        shall be $2,500 for each violation.''.
    (b) Increase in Limit on Administrative Authority and Civil 
Penalty.--Section 46301(d) is amended--
        (1) by striking ``more than $50,000;'' in paragraph (4)(A) and 
    inserting ``more than--
                ``(i) $50,000 if the violation was committed by any 
            person before the date of enactment of the Vision 100--
            Century of Aviation Reauthorization Act;
                ``(ii) $400,000 if the violation was committed by a 
            person other than an individual or small business concern 
            on or after that date; or
                ``(iii) $50,000 if the violation was committed by an 
            individual or small business concern on or after that 
            date;''; and
        (2) by striking ``is $50,000.'' in paragraph (8) and inserting 
    ``is--
            ``(A) $50,000 if the violation was committed by any person 
        before the date of enactment of the Vision 100--Century of 
        Aviation Reauthorization Act;
            ``(B) $400,000 if the violation was committed by a person 
        other than an individual or small business concern on or after 
        that date; or
            ``(C) $50,000 if the violation was committed by an 
        individual or small business concern on or after that date.''.
    (c) Small Business Concern Defined.--Section 46301 is amended by 
adding at the end the following:
    ``(i) Small Business Concern Defined.--In this section, the term 
`small business concern' has the meaning given that term in section 3 
of the Small Business Act (15 U.S.C. 632).''.
    (d) Conforming Amendments.--Title 49 is amended--
        (1) in section 41705(b) by striking ``46301(a)(3)(E)'' and 
    inserting ``46301''; and
        (2) in section 46304(a) by striking ``, (2), or (3)''.

SEC. 504. IMPROVEMENT OF CURRICULUM STANDARDS FOR AVIATION MAINTENANCE 
              TECHNICIANS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall ensure that the training standards for airframe 
and powerplant mechanics under part 65 of title 14, Code of Federal 
Regulations, are updated and revised in accordance with this section. 
The Administrator may update and revise the training standards through 
the initiation of a formal rulemaking or by issuing an advisory 
circular or other agency guidance.
    (b) Elements for Consideration.--The updated and revised standards 
required under subsection (a) shall include those curriculum 
adjustments that are necessary to more accurately reflect current 
technology and maintenance practices.
    (c) Certification.--Any adjustment or modification of current 
curriculum standards made pursuant to this section shall be reflected 
in the certification examinations of airframe and powerplant mechanics.
    (d) Completion.--The revised and updated training standards 
required by subsection (a) shall be completed not later than 12 months 
after the date of enactment of this Act.
    (e) Periodic Reviews and Updates.--The Administrator shall review 
the content of the curriculum standards for training airframe and 
powerplant mechanics referred to in subsection (a) every 3 years after 
completion of the revised and updated training standards required under 
subsection (a) as necessary to reflect current technology and 
maintenance practices.

SEC. 505. ASSESSMENT OF WAKE TURBULENCE RESEARCH AND DEVELOPMENT 
              PROGRAM.

    (a) Assessment.--The Administrator of the Federal Aviation 
Administration shall enter into an arrangement with the National 
Research Council for an assessment of the Federal Aviation 
Administration's proposed wake turbulence research and development 
program. The assessment shall include--
        (1) an evaluation of the research and development goals and 
    objectives of the program;
        (2) a listing of any additional research and development 
    objectives that should be included in the program;
        (3) any modifications that will be necessary for the program to 
    achieve the program's goals and objectives on schedule and within 
    the proposed level of resources; and
        (4) an evaluation of the roles, if any, that should be played 
    by other Federal agencies, such as the National Aeronautics and 
    Space Administration and the National Oceanic and Atmospheric 
    Administration, in wake turbulence research and development, and 
    how those efforts could be coordinated.
    (b) Report.--A report containing the results of the assessment 
shall be provided to the Committee on Science of the House of 
Representatives and to the Committee on Commerce, Science, and 
Transportation of the Senate not later than 1 year after the date of 
enactment of this Act.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator of the Federal Aviation 
Administration $500,000 for fiscal year 2004 to carry out this section.

SEC. 506. FAA INSPECTOR TRAINING.

    (a) Study.--
        (1) In general.--The Comptroller General shall conduct a study 
    of the training of the aviation safety inspectors of the Federal 
    Aviation Administration (in this section referred to as ``FAA 
    inspectors'').
        (2) Contents.--The study shall include--
            (A) an analysis of the type of training provided to FAA 
        inspectors;
            (B) actions that the Federal Aviation Administration has 
        undertaken to ensure that FAA inspectors receive up-to-date 
        training on the latest technologies;
            (C) the extent of FAA inspector training provided by the 
        aviation industry and whether such training is provided without 
        charge or on a quid pro quo basis; and
            (D) the amount of travel that is required of FAA inspectors 
        in receiving training.
        (3) Report.--Not later than 1 year after the date of enactment 
    of this Act, the Comptroller General 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 results of the study.
    (b) Sense of the House.--It is the sense of the House of 
Representatives that--
        (1) FAA inspectors should be encouraged to take the most up-to-
    date initial and recurrent training on the latest aviation 
    technologies;
        (2) FAA inspector training should have a direct relation to an 
    individual's job requirements; and
        (3) if possible, a FAA inspector should be allowed to take 
    training at the location most convenient for the inspector.
    (c) Workload of Inspectors.--
        (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 standards for FAA inspectors to 
    ensure proper oversight over the aviation industry, including the 
    designee program.
        (2) Contents.--The study shall include the following:
            (A) A suggested method of modifying FAA inspectors staffing 
        models for application to current local conditions or applying 
        some other approach to developing an objective staffing 
        standard.
            (B) The approximate cost and length of time for developing 
        such models.
        (3) Report.--Not later than 12 months after the initiation of 
    the arrangements under subsection (a), the National Academy of 
    Sciences shall transmit to Congress a report on the results of the 
    study.

SEC. 507. AIR TRANSPORTATION OVERSIGHT SYSTEM PLAN.

    (a) In General.--Within 90 days after the date of enactment of this 
Act, the Administrator of the Federal Aviation Administration shall 
transmit to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure a plan containing an implementation 
schedule for addressing problems with the air transportation oversight 
system that have been identified in reports by the Comptroller General 
and the Inspector General of the Department of Transportation.
    (b) Plan Requirements.--The plan transmitted by the Administrator 
under subsection (a) shall set forth the action the Administration will 
take under the plan--
        (1) to develop specific, clear, and meaningful inspection 
    guidance for the use by Administration aviation safety inspectors 
    and analysts;
        (2) to provide adequate training to Administration aviation 
    safety inspectors in system safety concepts, risk analysis, and 
    auditing;
        (3) to ensure that aviation safety inspectors with the 
    necessary qualifications and experience are physically located 
    where they can satisfy the most important needs;
        (4) to establish strong national leadership for the air 
    transportation oversight system and to ensure that the system is 
    implemented consistently across Administration field offices; and
        (5) to extend the air transportation oversight system beyond 
    the 10 largest air carriers, so it governs oversight of smaller air 
    carriers as well.

                      TITLE VI--AVIATION SECURITY

SEC. 601. CERTIFICATE ACTIONS IN RESPONSE TO A SECURITY THREAT.

    (a) In General.--Chapter 461 is amended by adding at the end the 
following:

``Sec. 46111. Certificate actions in response to a security threat

    ``(a) Orders.--The Administrator of Federal Aviation Administration 
shall issue an order amending, modifying, suspending, or revoking any 
part of a certificate issued under this title if the Administrator is 
notified by the Under Secretary for Border and Transportation Security 
of the Department of Homeland Security that the holder of the 
certificate poses, or is suspected of posing, a risk of air piracy or 
terrorism or a threat to airline or passenger safety. If requested by 
the Under Secretary, the order shall be effective immediately.
    ``(b) Hearings for Citizens.--An individual who is a citizen of the 
United States who is adversely affected by an order of the 
Administrator under subsection (a) is entitled to a hearing on the 
record.
    ``(c) Hearings.--When conducting a hearing under this section, the 
administrative law judge shall not be bound by findings of fact or 
interpretations of laws and regulations of the Administrator or the 
Under Secretary.
    ``(d) Appeals.--An appeal from a decision of an administrative law 
judge as the result of a hearing under subsection (b) shall be made to 
the Transportation Security Oversight Board established by section 115. 
The Board shall establish a panel to review the decision. The members 
of this panel (1) shall not be employees of the Transportation Security 
Administration, (2) shall have the level of security clearance needed 
to review the determination made under this section, and (3) shall be 
given access to all relevant documents that support that determination. 
The panel may affirm, modify, or reverse the decision.
    ``(e) Review.--A person substantially affected by an action of a 
panel under subsection (d), or the Under Secretary when the Under 
Secretary decides that the action of the panel under this section will 
have a significant adverse impact on carrying out this part, may obtain 
review of the order under section 46110. The Under Secretary and the 
Administrator shall be made a party to the review proceedings. Findings 
of fact of the panel are conclusive if supported by substantial 
evidence.
    ``(f) Explanation of Decisions.--An individual who commences an 
appeal under this section shall receive a written explanation of the 
basis for the determination or decision and all relevant documents that 
support that determination to the maximum extent that the national 
security interests of the United States and other applicable laws 
permit.
    ``(g) Classified Evidence.--
        ``(1) In general.--The Under Secretary, in consultation with 
    the Administrator and the Director of Central Intelligence, shall 
    issue regulations to establish procedures by which the Under 
    Secretary, as part of a hearing conducted under this section, may 
    provide an unclassified summary of classified evidence upon which 
    the order of the Administrator was based to the individual 
    adversely affected by the order.
        ``(2) Review of classified evidence by administrative law 
    judge.--
            ``(A) Review.--As part of a hearing conducted under this 
        section, if the order of the Administrator issued under 
        subsection (a) is based on classified information (as defined 
        in section 1(a) of the Classified Information Procedures Act 
        (18 U.S.C. App.), such information may be submitted by the 
        Under Secretary to the reviewing administrative law judge, 
        pursuant to appropriate security procedures, and shall be 
        reviewed by the administrative law judge ex parte and in 
        camera.
            ``(B) Security clearances.--Pursuant to existing procedures 
        and requirements, the Under Secretary shall, in coordination, 
        as necessary, with the heads of other affected departments or 
        agencies, ensure that administrative law judges reviewing 
        orders of the Administrator under this section possess security 
        clearances appropriate for their work under this section.
        ``(3) Unclassified summaries of classified evidence.--As part 
    of a hearing conducted under this section and upon the request of 
    the individual adversely affected by an order of the Administrator 
    under subsection (a), the Under Secretary shall provide to the 
    individual and reviewing administrative law judge, consistent with 
    the procedures established under paragraph (1), an unclassified 
    summary of any classified information upon which the order of the 
    Administrator is based.''.
    (b) Conforming Amendment.--The analysis for chapter 461 is amended 
by adding at the end the following:

``46111. Certificate actions in response to a security threat.''.

SEC. 602. JUSTIFICATION FOR AIR DEFENSE IDENTIFICATION ZONE.

    (a) In General.--If the Administrator of the Federal Aviation 
Administration establishes an Air Defense Identification Zone (in this 
section referred as an ``ADIZ''), 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, not later than 60 days after the date of 
establishing the ADIZ, a report containing an explanation of the need 
for the ADIZ. The Administrator also shall transmit to the Committees 
updates of the report every 60 days until the ADIZ is rescinded. The 
reports and updates shall be transmitted in classified form.
    (b) Existing ADIZ.--If an ADIZ is in effect on the date of 
enactment of this Act, the Administrator shall transmit an initial 
report under subsection (a) not later than 30 days after such date of 
enactment.
    (c) Description of Changes To Improve Operations.--A report 
transmitted by the Administrator under this section shall include a 
description of any changes in procedures or requirements that could 
improve operational efficiency or minimize operational impacts of the 
ADIZ on pilots and controllers. This portion of the report may be 
transmitted in classified or unclassified form.
    (d) Definition.--In this section, the terms ``Air Defense 
Identification Zone'' and ``ADIZ'' each mean a zone established by the 
Administrator with respect to airspace under 18,000 feet in 
approximately a 15- to 38-mile radius around Washington, District of 
Columbia, for which security measures are extended beyond the existing 
15-mile no-fly zone around Washington and in which general aviation 
aircraft are required to adhere to certain procedures issued by the 
Administrator.

SEC. 603. CREW TRAINING.

    Section 44918 is amended to read as follows:

``Sec. 44918. Crew training

    ``(a) Basic Security Training.--
        ``(1) In general.--Each air carrier providing scheduled 
    passenger air transportation shall carry out a training program for 
    flight and cabin crew members to prepare the crew members for 
    potential threat conditions.
        ``(2) Program elements.--An air carrier training program under 
    this subsection shall include, at a minimum, elements that address 
    each of the following:
            ``(A) Recognizing suspicious activities and determining the 
        seriousness of any occurrence.
            ``(B) Crew communication and coordination.
            ``(C) The proper commands to give passengers and attackers.
            ``(D) Appropriate responses to defend oneself.
            ``(E) Use of protective devices assigned to crew members 
        (to the extent such devices are required by the Administrator 
        of the Federal Aviation Administration or the Under Secretary 
        for Border and Transportation Security of the Department of 
        Homeland Security).
            ``(F) Psychology of terrorists to cope with hijacker 
        behavior and passenger responses.
            ``(G) Situational training exercises regarding various 
        threat conditions.
            ``(H) Flight deck procedures or aircraft maneuvers to 
        defend the aircraft and cabin crew responses to such procedures 
        and maneuvers.
            ``(I) The proper conduct of a cabin search, including 
        explosive device recognition.
            ``(J) Any other subject matter considered appropriate by 
        the Under Secretary.
        ``(3) Approval.--An air carrier training program under this 
    subsection shall be subject to approval by the Under Secretary.
        ``(4) Minimum standards.--Not later than one year after the 
    date of enactment of the Vision 100--Century of Aviation 
    Reauthorization Act, the Under Secretary may establish minimum 
    standards for the training provided under this subsection and for 
    recurrent training.
        ``(5) Existing programs.--Notwithstanding paragraphs (3) and 
    (4), any training program of an air carrier to prepare flight and 
    cabin crew members for potential threat conditions that was 
    approved by the Administrator or the Under Secretary before the 
    date of enactment of the Vision 100--Century of Aviation 
    Reauthorization Act may continue in effect until disapproved or 
    ordered modified by the Under Secretary.
        ``(6) Monitoring.--The Under Secretary, in consultation with 
    the Administrator, shall monitor air carrier training programs 
    under this subsection and periodically shall review an air 
    carrier's training program to ensure that the program is adequately 
    preparing crew members for potential threat conditions. In 
    determining when an air carrier's training program should be 
    reviewed under this paragraph, the Under Secretary shall consider 
    complaints from crew members. The Under Secretary shall ensure that 
    employees responsible for monitoring the training programs have the 
    necessary resources and knowledge.
        ``(7) Updates.--The Under Secretary, in consultation with the 
    Administrator, shall order air carriers to modify training programs 
    under this subsection to reflect new or different security threats.
    ``(b) Advanced Self-Defense Training.--
        ``(1) In general.--Not later than one year after the date of 
    enactment of the Vision 100--Century of Aviation Reauthorization 
    Act, the Under Secretary shall develop and provide a voluntary 
    training program for flight and cabin crew members of air carriers 
    providing scheduled passenger air transportation.
        ``(2) Program elements.--The training program under this 
    subsection shall include both classroom and effective hands-on 
    training in the following elements of self-defense:
            ``(A) Deterring a passenger who might present a threat.
            ``(B) Advanced control, striking, and restraint techniques.
            ``(C) Training to defend oneself against edged or contact 
        weapons.
            ``(D) Methods to subdue and restrain an attacker.
            ``(E) Use of available items aboard the aircraft for self-
        defense.
            ``(F) Appropriate and effective responses to defend 
        oneself, including the use of force against an attacker.
            ``(G) Any other element of training that the Under 
        Secretary considers appropriate.
        ``(3) Participation not required.--A crew member shall not be 
    required to participate in the training program under this 
    subsection.
        ``(4) Compensation.--Neither the Federal Government nor an air 
    carrier shall be required to compensate a crew member for 
    participating in the training program under this subsection.
        ``(5) Fees.--A crew member shall not be required to pay a fee 
    for the training program under this subsection.
        ``(6) Consultation.--In developing the training program under 
    this subsection, the Under Secretary shall consult with law 
    enforcement personnel and security experts who have expertise in 
    self-defense training, terrorism experts, representatives of air 
    carriers, the director of self-defense training in the Federal Air 
    Marshals Service, flight attendants, labor organizations 
    representing flight attendants, and educational institutions 
    offering law enforcement training programs.
        ``(7) Designation of tsa official.--The Under Secretary shall 
    designate an official in the Transportation Security Administration 
    to be responsible for implementing the training program under this 
    subsection. The official shall consult with air carriers and labor 
    organizations representing crew members before implementing the 
    program to ensure that it is appropriate for situations that may 
    arise on board an aircraft during a flight.
    ``(c) Limitation.--Actions by crew members under this section shall 
be subject to the provisions of section 44903(k).''.

SEC. 604. STUDY OF EFFECTIVENESS OF TRANSPORTATION SECURITY SYSTEM.

    (a) In General.--The Secretary of Homeland Security, in 
consultation with representatives of the aviation community, shall 
study the effectiveness of the aviation security system, including the 
air marshal program, hardening of cockpit doors, and security screening 
of passengers, checked baggage, and cargo.
    (b) Report.--The Secretary shall transmit a report of the 
Secretary's findings and conclusions together with any recommendations, 
including legislative recommendations, the Secretary may have for 
improving the effectiveness of aviation security to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure within 6 
months after the date of enactment of this Act. In the report the 
Secretary shall also describe any redeployment of Transportation 
Security Administration resources based on those findings and 
conclusions. The Secretary may submit the report to the Committees in 
classified and redacted form. The Secretary shall submit the report in 
lieu of the annual report required under section 44938(a) of title 49, 
United States Code, that is due March 31, 2004.

SEC. 605. AIRPORT SECURITY IMPROVEMENT PROJECTS.

    (a) In General.--Subchapter I of chapter 449 is amended by adding 
at the end the following:

``Sec. 44923. Airport security improvement projects

    ``(a) Grant Authority.--Subject to the requirements of this 
section, the Under Secretary for Border and Transportation Security of 
the Department of Homeland Security may make grants to airport 
sponsors--
        ``(1) for projects to replace baggage conveyer systems related 
    to aviation security;
        ``(2) for projects to reconfigure terminal baggage areas as 
    needed to install explosive detection systems;
        ``(3) for projects to enable the Under Secretary to deploy 
    explosive detection systems behind the ticket counter, in the 
    baggage sorting area, or in line with the baggage handling system; 
    and
        ``(4) for other airport security capital improvement projects.
    ``(b) Applications.--A sponsor seeking a grant under this section 
shall submit to the Under Secretary an application in such form and 
containing such information as the Under Secretary prescribes.
    ``(c) Approval.--The Under Secretary, after consultation with the 
Secretary of Transportation, may approve an application of a sponsor 
for a grant under this section only if the Under Secretary determines 
that the project will improve security at an airport or improve the 
efficiency of the airport without lessening security.
    ``(d) Letters of Intent.--
        ``(1) Issuance.--The Under Secretary may issue a letter of 
    intent to a sponsor committing to obligate from future budget 
    authority an amount, not more than the Federal Government's share 
    of the project's cost, for an airport security improvement project 
    (including interest costs and costs of formulating the project).
        ``(2) Schedule.--A letter of intent under this subsection shall 
    establish a schedule under which the Under Secretary will reimburse 
    the sponsor for the Government's share of the project's costs, as 
    amounts become available, if the sponsor, after the Under Secretary 
    issues the letter, carries out the project without receiving 
    amounts under this section.
        ``(3) Notice to under secretary.--A sponsor that has been 
    issued a letter of intent under this subsection shall notify the 
    Under Secretary of the sponsor's intent to carry out a project 
    before the project begins.
        ``(4) Notice to congress.--The Under Secretary shall transmit 
    to the Committees on Appropriations and Transportation and 
    Infrastructure of the House of Representatives and the Committees 
    on Appropriations and Commerce, Science and Transportation of the 
    Senate a written notification at least 3 days before the issuance 
    of a letter of intent under this section.
        ``(5) Limitations.--A letter of intent issued under this 
    subsection is not an obligation of the Government under section 
    1501 of title 31, and the letter is not deemed to be an 
    administrative commitment for financing. An obligation or 
    administrative commitment may be made only as amounts are provided 
    in authorization and appropriations laws.
        ``(6) Statutory construction.--Nothing in this subsection shall 
    be construed to prohibit the obligation of amounts pursuant to a 
    letter of intent under this subsection in the same fiscal year as 
    the letter of intent is issued.
    ``(e) Federal Share.--
        ``(1) In general.--The Government's share of the cost of a 
    project under this section shall be 90 percent for a project at a 
    medium or large hub airport and 95 percent for a project at any 
    other airport.
        ``(2) Existing letters of intent.--The Under Secretary shall 
    revise letters of intent issued before the date of enactment of 
    this section to reflect the cost share established in this 
    subsection with respect to grants made after September 30, 2003.
    ``(f) Sponsor Defined.--In this section, the term `sponsor' has the 
meaning given that term in section 47102.
    ``(g) Applicability of Certain Requirements.--The requirements that 
apply to grants and letters of intent issued under chapter 471 (other 
than section 47102(3)) shall apply to grants and letters of intent 
issued under this section.
    ``(h) Aviation Security Capital Fund.--
        ``(1) In general.--There is established within the Department 
    of Homeland Security a fund to be known as the Aviation Security 
    Capital Fund. The first $250,000,000 derived from fees received 
    under section 44940(a)(1) in each of fiscal years 2004 through 2007 
    shall be available to be deposited in the Fund. The Under Secretary 
    shall impose the fee authorized by section 44940(a)(1) so as to 
    collect at least $250,000,000 in each of such fiscal years for 
    deposit into the Fund. Amounts in the Fund shall be available to 
    the Under Secretary to make grants under this section.
        ``(2) Allocations.--Of the amount made available under 
    paragraph (1) for a fiscal year, $125,000,000 shall be allocated in 
    such a manner that--
            ``(A) 40 percent shall be made available for large hub 
        airports;
            ``(B) 20 percent shall be made available for medium hub 
        airports;
            ``(C) 15 percent shall be made available for small hub 
        airports and nonhub airports; and
            ``(D) 25 percent shall be distributed by the Secretary to 
        any airport on the basis of aviation security risks.
        ``(3) Discretionary grants.--Of the amount made available under 
    paragraph (1) for a fiscal year, $125,000,000 shall be used to make 
    discretionary grants, with priority given to fulfilling intentions 
    to obligate under letters of intent issued under subsection (d).
    ``(i) Authorization of Appropriations.--
        ``(1) In general.--In addition to amounts made available under 
    subsection (h), there is authorized to be appropriated to carry out 
    this section $250,000,000 for each of fiscal years 2004 through 
    2007. Such sums shall remain available until expended.
        ``(2) Allocations.--50 percent of amounts appropriated pursuant 
    to this subsection for a fiscal year shall be used for making 
    allocations under subsection (h)(2) and 50 percent of such amounts 
    shall be used for making discretionary grants under subsection 
    (h)(3).''.
    (b) Conforming Amendments.--
        (1) Use of passenger fee funds.--Section 44940(a)(1) is amended 
    by inserting after subparagraph (G) the following:
            ``(H) The costs of security-related capital improvements at 
        airports.
            ``(I) The costs of training pilots and flight attendants 
        under sections 44918 and 44921.''.
        (2) Limitation on collection.--Section 44940(d)(4) is amended 
    by striking ``Act.'' and inserting ``Act or in section 44923.''.
        (3) Chapter analysis.--The analysis for subchapter I of chapter 
    449 is amended by adding at the end the following:
``44923. Airport security improvement projects.''.

SEC. 606. CHARTER SECURITY.

    (a) In General.--Section 44903 is amended by adding at the end the 
following:
    ``(l) Air Charter Program.--
        ``(1) In general.--The Under Secretary for Border and 
    Transportation Security of the Department of Homeland Security 
    shall implement an aviation security program for charter air 
    carriers (as defined in section 40102(a)) with a maximum 
    certificated takeoff weight of more than 12,500 pounds.
        ``(2) Exemption for armed forces charters.--
            ``(A) In general.--Paragraph (1) and the other requirements 
        of this chapter do not apply to passengers and property carried 
        by aircraft when employed to provide charter transportation to 
        members of the armed forces.
            ``(B) Security procedures.--The Secretary of Defense, in 
        consultation with the Secretary of Homeland Security and the 
        Secretary of Transportation, shall establish security 
        procedures relating to the operation of aircraft when employed 
        to provide charter transportation to members of the armed 
        forces to or from an airport described in section 44903(c).
            ``(C) Armed forces defined.--In this paragraph, the term 
        `armed forces' has the meaning given that term by section 
        101(a)(4) of title 10.''.
        (b) Repeal.--Section 132 of the Aviation and Transportation 
    Security Act (49 U.S.C. 44944 note) is repealed.

SEC. 607. CAPPS2.

    (a) In General.--The Under Secretary for Border and Transportation 
Security of the Department of Homeland Security shall not implement, on 
other than a test basis, the computer assisted passenger prescreening 
system (commonly known as and in this section referred to as 
``CAPPS2'') until the Under Secretary provides to Congress a 
certification that--
        (1) a procedure is established enabling airline passengers, who 
    are delayed or prohibited from boarding a flight because CAPPS2 
    determined that they might pose a security threat, to appeal such 
    determination and correct information contained in CAPPS2;
        (2) the error rate of the Government and private data bases 
    that will be used to both establish identity and assign a risk 
    level to a passenger under CAPPS2 will not produce a large number 
    of false positives that will result in a significant number of 
    passengers being mistaken as a security threat;
        (3) the Under Secretary has demonstrated the efficacy and 
    accuracy of all search tools in CAPPS2 and has demonstrated that 
    CAPPS2 can make an accurate predictive assessment of those 
    passengers who would constitute a security threat;
        (4) the Secretary of Homeland Security has established an 
    internal oversight board to oversee and monitor the manner in which 
    CAPPS2 is being implemented;
        (5) the Under Secretary has built in sufficient operational 
    safeguards to reduce the opportunities for abuse;
        (6) substantial security measures are in place to protect 
    CAPPS2 from -unauthorized access by hackers or other intruders;
        (7) the Under Secretary has adopted policies establishing 
    effective oversight of the use and operation of the system; and
        (8) there are no specific privacy concerns with the 
    technological architecture of the system.
    (b) GAO Report.--Not later than 90 days after the date on which 
certification is provided under subsection (a), the Comptroller General 
shall submit a report to the Committees on Appropriations of the House 
of Representatives and the Senate, the Committee on Transportation and 
Infrastructure of the House of Representatives, and the Committee on 
Commerce, Science and Transportation of the Senate that assesses the 
impact of CAPPS2 on the issues listed in subsection (a) and on privacy 
and civil liberties. The report shall include any recommendations for 
practices, procedures, regulations, or legislation to eliminate or 
minimize adverse effect of CAPPS2 on privacy, discrimination, and other 
civil liberties.

SEC. 608. REPORT ON PASSENGER PRESCREENING PROGRAM.

    (a) In General.--Within 90 days after the date of enactment of this 
Act, the Secretary of Homeland Security, after consultation with the 
Attorney General, shall submit a report in writing to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure on the 
potential impact of the Transportation Security Administration's 
proposed Computer Assisted Passenger Prescreening system, commonly 
known as CAPPS2, on the privacy and civil liberties of United States 
citizens.
    (b) Specific Issues To Be Addressed.--The report shall address the 
following:
        (1) Whether and for what period of time data gathered on 
    individual travelers will be retained, who will have access to such 
    data, and who will make decisions concerning access to such data.
        (2) How the Transportation Security Administration will treat 
    the scores assigned to individual travelers to measure the 
    likelihood they may pose a security threat, including how long such 
    scores will be retained and whether and under what circumstances 
    they may be shared with other governmental, nongovernmental, or 
    commercial entities.
        (3) The role airlines and outside vendors or contractors will 
    have in implementing and operating the system, and to what extent 
    will they have access, or the means to obtain access, to data, 
    scores, or other information generated by the system.
        (4) The safeguards that will be implemented to ensure that 
    data, scores, or other information generated by the system will be 
    used only as officially intended.
        (5) The procedures that will be implemented to mitigate the 
    effect of any errors, and what procedural recourse will be 
    available to passengers who believe the system has wrongly barred 
    them from taking flights.
        (6) The oversight procedures that will be implemented to ensure 
    that, on an ongoing basis, privacy and civil liberties issues will 
    continue to be considered and addressed with high priority as the 
    system is installed, operated, and updated.

SEC. 609. ARMING CARGO PILOTS AGAINST TERRORISM.

    (a) Sense of Congress.--It is the sense of Congress that members of 
a flight deck crew of a cargo aircraft should be armed with a firearm 
or taser to defend the cargo aircraft against an attack by terrorists 
that could result in the use of the aircraft as a weapon of mass 
destruction or for other terrorist purposes.
    (b) Arming Cargo Pilots Against Terrorism.--Section 44921 is 
amended--
        (1) in subsection (a) by striking ``passenger'' each place that 
    it appears;
        (2) in subsection (k)(2) by striking ``or,'' and all that 
    follows before the period at the end and inserting ``or any other 
    flight deck crew member''; and
        (3) by adding at the end of subsection (k) the following:
        ``(3) All-cargo air transportation.--In this section, the term 
    `air transportation' includes all-cargo air transportation.''.
    (c) Time for Implementation.--In carrying out the amendments made 
by subsection (d), the Under Secretary for Border and Transportation 
Security of the Department of Homeland Security shall ensure that 
passenger and cargo pilots are treated equitably in receiving access to 
training as Federal flight deck officers.
    (d) Effect on Other Laws.--The requirements of subsection (e) shall 
have no effect on the deadlines for implementation contained in section 
44921 of title 49, United States Code, as in effect on the day before 
the date of enactment of this Act.

SEC. 610. REMOVAL OF CAP ON TSA STAFFING LEVEL.

    The matter appearing under the heading ``Aviation Security'' in the 
appropriations for the Transportation Security Administration in the 
Transportation and Related Agencies Appropriation Act, 2003 (Public Law 
108-7; 117 Stat. 386) is amended by striking the fifth proviso.

SEC. 611. FOREIGN REPAIR STATIONS.

    (a) Oversight Plan.--Within 90 days after the date of enactment of 
this Act, the Administrator of the Federal Aviation Administration 
shall transmit to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure a plan containing an implementation 
schedule to strengthen oversight of domestic and foreign repair 
stations and ensure that foreign repair stations that are certified by 
the Administrator under part 145 of title 14, Code of Federal 
Regulations, are subject to an equivalent level of safety, oversight, 
and quality control as those located in the United States.
    (b) Repair Station Security.--
        (1) In general.--Subchapter I of chapter 449 is further amended 
    by adding at the end the following:

``Sec. 44924. Repair station security

    ``(a) Security Review and Audit.--To ensure the security of 
maintenance and repair work conducted on air carrier aircraft and 
components at foreign repair stations, the Under Secretary for Border 
and Transportation Security of the Department of Homeland Security, in 
consultation with the Administrator of the Federal Aviation 
Administration, shall complete a security review and audit of foreign 
repair stations that are certified by the Administrator under part 145 
of title 14, Code of Federal Regulations, and that work on air carrier 
aircraft and components. The review shall be completed not later than 
18 months after the date on which the Under Secretary issues 
regulations under subsection (f).
    ``(b) Addressing Security Concerns.--The Under Secretary shall 
require a foreign repair station to address the security issues and 
vulnerabilities identified in a security audit conducted under 
subsection (a) within 90 days of providing notice to the repair station 
of the security issues and vulnerabilities so identified and shall 
notify the Administrator that a deficiency was identified in the 
security audit.
    ``(c) Suspensions and Revocations of Certificates.--
        ``(1) Failure to carry out effective security measures.--If, 
    after the 90th day on which a notice is provided to a foreign 
    repair station under subsection (b), the Under Secretary determines 
    that the foreign repair station does not maintain and carry out 
    effective security measures, the Under Secretary shall notify the 
    Administrator of the determination. Upon receipt of the 
    determination, the Administrator shall suspend the certification of 
    the repair station until such time as the Under Secretary 
    determines that the repair station maintains and carries out 
    effective security measures and transmits the determination to the 
    Administrator.
        ``(2) Immediate security risk.--If the Under Secretary 
    determines that a foreign repair station poses an immediate 
    security risk, the Under Secretary shall notify the Administrator 
    of the determination. Upon receipt of the determination, the 
    Administrator shall revoke the certification of the repair station.
        ``(3) Procedures for appeals.--The Under Secretary, in 
    consultation with the Administrator, shall establish procedures for 
    appealing a revocation of a certificate under this subsection.
    ``(d) Failure To Meet Audit Deadline.--If the security audits 
required by subsection (a) are not completed on or before the date that 
is 18 months after the date on which the Under Secretary issues 
regulations under subsection (f), the Administrator shall be barred 
from certifying any foreign repair station until such audits are 
completed for existing stations.
    ``(e) Priority for Audits.--In conducting the audits described in 
subsection (a), the Under Secretary and the Administrator shall give 
priority to foreign repair stations located in countries identified by 
the Government as posing the most significant security risks.
    ``(f) Regulations.--Not later than 240 days after the date of 
enactment of this section, the Under Secretary, in consultation with 
the Administrator, shall issue final regulations to ensure the security 
of foreign and domestic aircraft repair stations.
    ``(g) Report to Congress.--If the Under Secretary does not issue 
final regulations before the deadline specified in subsection (f), the 
Under Secretary 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 containing 
an explanation as to why the deadline was not met and a schedule for 
issuing the final regulations.''.
        (2) Conforming amendment.--The analysis for subchapter I of 
    chapter 449 is further amended by adding at the end the following:

``44924. Repair station security.''.

SEC. 612. FLIGHT TRAINING.

    (a) In General.--Section 44939 is amended to read as follows:

``Sec. 44939. Training to operate certain aircraft

    ``(a) Waiting Period.--A person operating as a flight instructor, 
pilot school, or aviation training center or subject to regulation 
under this part may provide training in the operation of any aircraft 
having a maximum certificated takeoff weight of more than 12,500 pounds 
to an alien (as defined in section 101(a)(3) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(3))) or to any other individual 
specified by the Secretary of Homeland Security only if--
        ``(1) that person has first notified the Secretary that the 
    alien or individual has requested such training and submitted to 
    the Secretary, in such form as the Secretary may prescribe, the 
    following information about the alien or individual:
            ``(A) full name, including any aliases used by the 
        applicant or variations in spelling of the applicant's name;
            ``(B) passport and visa information;
            ``(C) country of citizenship;
            ``(D) date of birth;
            ``(E) dates of training; and
            ``(F) fingerprints collected by, or under the supervision 
        of, a Federal, State, or local law enforcement agency or by 
        another entity approved by the Federal Bureau of Investigation 
        or the Secretary of Homeland Security, including fingerprints 
        taken by United States Government personnel at a United States 
        embassy or consulate; and
        ``(2) the Secretary has not directed, within 30 days after 
    being notified under paragraph (1), that person not to provide the 
    requested training because the Secretary has determined that the 
    individual presents a risk to aviation or national security.
    ``(b) Interruption of Training.--If the Secretary of Homeland 
Security, more than 30 days after receiving notification under 
subsection (a) from a person providing training described in subsection 
(a), determines that the individual presents a risk to aviation or 
national security, the Secretary shall immediately notify the person 
providing the training of the determination and that person shall 
immediately terminate the training.
    ``(c) Notification.--A person operating as a flight instructor, 
pilot school, or aviation training center or subject to regulation 
under this part may provide training in the operation of any aircraft 
having a maximum certificated takeoff weight of 12,500 pounds or less 
to an alien (as defined in section 101(a)(3) of the Immigration and 
Nationality Act (8 U.S.C. 1101(a)(3))) or to any other individual 
specified by the Secretary of Homeland Security only if that person has 
notified the Secretary that the individual has requested such training 
and furnished the Secretary with that individual's identification in 
such form as the Secretary may require.
    ``(d) Expedited Processing.--Not later than 60 days after the date 
of enactment of this section, the Secretary shall establish a process 
to ensure that the waiting period under subsection (a) shall not exceed 
5 days for an alien (as defined in section 101(a)(3) of the Immigration 
and Nationality Act (8 U.S.C. 1101(a)(3))) who--
        ``(1) holds an airman's certification of a foreign country that 
    is recognized by an agency of the United States, including a 
    military agency, that permits an individual to operate a multi-
    engine aircraft that has a certificated takeoff weight of more than 
    12,500 pounds;
        ``(2) is employed by a foreign air carrier that is certified 
    under part 129 of title 14, Code of Federal Regulations, and that 
    has a security program approved under section 1546 of title 49, 
    Code of Federal Regulations;
        ``(3) is an individual that has unescorted access to a secured 
    area of an airport designated under section 44936(a)(1)(A)(ii); or
        ``(4) is an individual that is part of a class of individuals 
    that the Secretary has determined that providing aviation training 
    to presents minimal risk to aviation or national security because 
    of the aviation training already possessed by such class of 
    individuals.
    ``(e) Training.--In subsection (a), the term `training' means 
training received from an instructor in an aircraft or aircraft 
simulator and does not include recurrent training, ground training, or 
demonstration flights for marketing purposes.
    ``(f) Nonapplicability to Certain Foreign Military Pilots.--The 
procedures and processes required by subsections (a) through (d) shall 
not apply to a foreign military pilot endorsed by the Department of 
Defense for flight training in the United States and seeking training 
described in subsection (e) in the United States.
    ``(g) Fee.--
        ``(1) In general.--The Secretary of Homeland Security may 
    assess a fee for an investigation under this section, which may not 
    exceed $100 per individual (exclusive of the cost of transmitting 
    fingerprints collected at overseas facilities) during fiscal years 
    2003 and 2004. For fiscal year 2005 and thereafter, the Secretary 
    may adjust the maximum amount of the fee to reflect the costs of 
    such an investigation.
        ``(2) Offset.--Notwithstanding section 3302 of title 31, any 
    fee collected under this section--
            ``(A) shall be credited to the account in the Treasury from 
        which the expenses were incurred and shall be available to the 
        Secretary for those expenses; and
            ``(B) shall remain available until expended.
    ``(h) Interagency Cooperation.--The Attorney General, the Director 
of Central Intelligence, and the Administrator of the Federal Aviation 
Administration shall cooperate with the Secretary in implementing this 
section.
    ``(i) Security Awareness Training for Employees.--The Secretary 
shall require flight schools to conduct a security awareness program 
for flight school employees to increase their awareness of suspicious 
circumstances and activities of individuals enrolling in or attending 
flight school.''.
    (b) Procedures.--
        (1) In general.--Not later than 60 days after the date of 
    enactment of this Act, the Secretary of Homeland Security shall 
    promulgate an interim final rule to implement section 44939 of 
    title 49, United States Code, as amended by subsection (a).
        (2) Use of overseas facilities.--In order to implement section 
    44939 of title 49, United States Code, as amended by subsection 
    (a), United States Embassies and Consulates that possess 
    appropriate fingerprint collection equipment and personnel 
    certified to capture fingerprints shall provide fingerprint 
    services to aliens covered by that section if the Secretary 
    requires fingerprints in the administration of that section, and 
    shall transmit the fingerprints to the Secretary or other agency 
    designated by the Secretary. The Attorney General and the Secretary 
    of State shall cooperate with the Secretary of Homeland Security in 
    carrying out this paragraph.
        (3) Use of united states facilities.--If the Secretary of 
    Homeland Security requires fingerprinting in the administration of 
    section 44939 of title 49, United States Code, the Secretary may 
    designate locations within the United States that will provide 
    fingerprinting services to individuals covered by that section.
    (c) Effective Date.--The amendment made by subsection (a) takes 
effect on the effective date of the interim final rule required by 
subsection (b)(1).
    (d) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Homeland Security shall submit to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure a report 
on the effectiveness of the activities carried out under section 44939 
of title 49, United States Code, in reducing risks to aviation security 
and national security.

SEC. 613. DEPLOYMENT OF SCREENERS AT KENAI, HOMER, AND VALDEZ, ALASKA.

    Not later than 45 days after the date of enactment of this Act, the 
Administrator of the Transportation Security Administration shall 
deploy Federal screeners at Kenai, Homer, and Valdez, Alaska.

                      TITLE VII--AVIATION RESEARCH

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

    Section 48102(a) is amended--
        (1) by striking ``to carry out sections 44504'' and inserting 
    ``for conducting civil aviation research and development under 
    sections 44504'';
        (2) by striking ``and'' at the end of paragraph (7);
        (3) by striking the period at the end of paragraph (8) and 
    inserting a semicolon; and
        (4) by adding at the end the following new paragraphs:
        ``(9) for fiscal year 2004, $346,317,000, including--
            ``(A) $65,000,000 for Improving Aviation Safety;
            ``(B) $24,000,000 for Weather Safety Research;
            ``(C) $27,500,000 for Human Factors and Aeromedical 
        Research;
            ``(D) $30,000,000 for Environmental Research and 
        Development, of which $20,000,000 shall be for research 
        activities related to reducing community exposure to civilian 
        aircraft noise or emissions;
            ``(E) $7,000,000 for Research Mission Support;
            ``(F) $10,000,000 for the Airport Cooperative Research 
        Program;
            ``(G) $1,500,000 for carrying out subsection (h) of this 
        section;
            ``(H) $42,800,000 for Advanced Technology Development and 
        Prototyping;
            ``(I) $30,300,000 for Safe Flight 21;
            ``(J) $90,800,000 for the Center for Advanced Aviation 
        System Development;
            ``(K) $9,667,000 for Airports Technology-Safety; and
            ``(L) $7,750,000 for Airports Technology-Efficiency;
        ``(10) for fiscal year 2005, $356,192,000, including--
            ``(A) $65,705,000 for Improving Aviation Safety;
            ``(B) $24,260,000 for Weather Safety Research;
            ``(C) $27,800,000 for Human Factors and Aeromedical 
        Research;
            ``(D) $30,109,000 for Environmental Research and 
        Development, of which $20,000,000 shall be for research 
        activities related to reducing community exposure to civilian 
        aircraft noise or emissions;
            ``(E) $7,076,000 for Research Mission Support;
            ``(F) $10,000,000 for the Airport Cooperative Research 
        Program;
            ``(G) $1,650,000 for carrying out subsection (h) of this 
        section;
            ``(H) $43,300,000 for Advanced Technology Development and 
        Prototyping;
            ``(I) $31,100,000 for Safe Flight 21;
            ``(J) $95,400,000 for the Center for Advanced Aviation 
        System Development;
            ``(K) $2,200,000 for Free Flight Phase 2;
            ``(L) $9,764,000 for Airports Technology-Safety; and
            ``(M) $7,828,000 for Airports Technology-Efficiency;
        ``(11) for fiscal year 2006, $352,157,000, including--
            ``(A) $66,447,000 for Improving Aviation Safety;
            ``(B) $24,534,000 for Weather Safety Research;
            ``(C) $28,114,000 for Human Factors and Aeromedical 
        Research;
            ``(D) $30,223,000 for Environmental Research and 
        Development, of which $20,000,000 shall be for research 
        activities related to reducing community exposure to civilian 
        aircraft noise or emissions;
            ``(E) $7,156,000 for Research Mission Support;
            ``(F) $10,000,000 for the Airport Cooperation Research 
        Program;
            ``(G) $1,815,000 for carrying out subsection (h) of this 
        section;
            ``(H) $42,200,000 for Advanced Technology Development and 
        Prototyping;
            ``(I) $23,900,000 for Safe Flight 21;
            ``(J) $100,000,000 for the Center for Advanced Aviation 
        System Development;
            ``(K) $9,862,000 for Airports Technology-Safety; and
            ``(L) $7,906,000 for Airports Technology-Efficiency; and
        ``(12) for fiscal year 2007, $356,261,000, including--
            ``(A) $67,244,000 for Improving Aviation Safety;
            ``(B) $24,828,000 for Weather Safety Research;
            ``(C) $28,451,000 for Human Factors and Aeromedical 
        Research;
            ``(D) $30,586,000 for Environmental Research and 
        Development, of which $20,000,000 shall be for research 
        activities related to reducing community exposure to civilian 
        aircraft noise or emissions;
            ``(E) $7,242,000 for Research Mission Support;
            ``(F) $10,000,000 for the Airport Cooperation Research 
        Program;
            ``(G) $1,837,000 for carrying out subsection (h) of this 
        section;
            ``(H) $42,706,000 for Advanced Technology Development and 
        Prototyping;
            ``(I) $24,187,000 for Safe Flight 21;
            ``(J) $101,200,000 for the Center for Advanced Aviation 
        System Development;
            ``(K) $9,980,000 for Airports Technology-Safety; and
            ``(L) $8,000,000 for Airports Technology-Efficiency.''.

SEC. 702. FEDERAL AVIATION ADMINISTRATION SCIENCE AND TECHNOLOGY 
              SCHOLARSHIP PROGRAM.

    (a)(1) The Administrator of the Federal Aviation Administration 
shall establish a Federal Aviation Administration Science and 
Technology Scholarship Program to award scholarships to individuals 
that is designed to recruit and prepare students for careers in the 
Federal Aviation Administration.
    (2) Individuals shall be selected to receive scholarships under 
this section through a competitive process primarily on the basis of 
academic merit, with consideration given to financial need and the goal 
of promoting the participation of individuals identified in section 33 
or 34 of the Science and Engineering Equal Opportunities Act.
    (3) To carry out the Program the Administrator shall enter into 
contractual agreements with individuals selected under paragraph (2) 
under which the individuals agree to serve as full-time employees of 
the Federal Aviation Administration, for the period described in 
subsection (f)(1), in positions needed by the Federal Aviation 
Administration and for which the individuals are qualified, in exchange 
for receiving a scholarship.
    (b) In order to be eligible to participate in the Program, an 
individual must--
        (1) be enrolled or accepted for enrollment as a full-time 
    student at an institution of higher education, as a junior or 
    senior undergraduate or graduate student, in an academic field or 
    discipline described in the list made available under subsection 
    (d);
        (2) be a United States citizen or permanent resident; and
        (3) at the time of the initial scholarship award, not be an 
    employee (as defined in section 2105 of title 5, United States 
    Code).
    (c) An individual seeking a scholarship under this section shall 
submit an application to the Administrator at such time, in such 
manner, and containing such information, agreements, or assurances as 
the Administrator may require.
    (d) The Administrator shall make publicly available a list of 
academic programs and fields of study for which scholarships under the 
Program may be utilized and shall update the list as necessary.
    (e)(1) The Administrator may provide a scholarship under the 
Program for an academic year if the individual applying for the 
scholarship has submitted to the Administrator, as part of the 
application required under subsection (c), a proposed academic program 
leading to a degree in a program or field of study on the list made 
available under subsection (d).
    (2) An individual may not receive a scholarship under this section 
for more than 4 academic years, unless the Administrator grants a 
waiver.
    (3) The dollar amount of a scholarship under this section for an 
academic year shall be determined under regulations issued by the 
Administrator, but shall in no case exceed the cost of attendance.
    (4) A scholarship provided under this section may be expended for 
tuition, fees, and other authorized expenses as established by the 
Administrator by regulation.
    (5) The Administrator may enter into a contractual agreement with 
an institution of higher education under which the amounts provided for 
a scholarship under this section for tuition, fees, and other 
authorized expenses are paid directly to the institution with respect 
to which the scholarship is provided.
    (f)(1) The period of service for which an individual shall be 
obligated to serve as an employee of the Federal Aviation 
Administration is, except as provided in subsection (h)(2), 24 months 
for each academic year for which a scholarship under this section is 
provided.
    (2)(A) Except as provided in subparagraph (B), obligated service 
under paragraph (1) shall begin not later than 60 days after the 
individual obtains the educational degree for which the scholarship was 
provided.
    (B) The Administrator may defer the obligation of an individual to 
provide a period of service under paragraph (1) if the Administrator 
determines that such a deferral is appropriate. The Administrator shall 
prescribe the terms and conditions under which a service obligation may 
be deferred through regulation.
    (g)(1) Scholarship recipients who fail to maintain a high level of 
academic standing, as defined by the Administrator by regulation, who 
are dismissed from their educational institutions for disciplinary 
reasons, or who voluntarily terminate academic training before 
graduation from the educational program for which the scholarship was 
awarded, shall be in breach of their contractual agreement and, in lieu 
of any service obligation arising under such agreement, shall be liable 
to the United States for repayment within 1 year after the date of 
default of all scholarship funds paid to them and to the institution of 
higher education on their behalf under the agreement, except as 
provided in subsection (h)(2). The repayment period may be extended by 
the Administrator when determined to be necessary, as established by 
regulation.
    (2) Scholarship recipients who, for any reason, fail to begin or 
complete their service obligation after completion of academic 
training, or fail to comply with the terms and conditions of deferment 
established by the Administrator pursuant to subsection (f)(2)(B), 
shall be in breach of their contractual agreement. When recipients 
breach their agreements for the reasons stated in the preceding 
sentence, the recipient shall be liable to the United States for an 
amount equal to--
        (A) the total amount of scholarships received by such 
    individual under this section; plus
        (B) the interest on the amounts of such awards which would be 
    payable if at the time the awards were received they were loans 
    bearing interest at the maximum legal prevailing rate, as 
    determined by the Treasurer of the United States,
multiplied by 3.
    (h)(1) Any obligation of an individual incurred under the Program 
(or a contractual agreement thereunder) for service or payment shall be 
canceled upon the death of the individual.
    (2) The Administrator shall by regulation provide for the partial 
or total waiver or suspension of any obligation of service or payment 
incurred by an individual under the Program (or a contractual agreement 
thereunder) whenever compliance by the individual is impossible or 
would involve extreme hardship to the individual, or if enforcement of 
such obligation with respect to the individual would be contrary to the 
best interests of the Government.
    (i) For purposes of this section--
        (1) the term ``cost of attendance'' has the meaning given that 
    term in section 472 of the Higher Education Act of 1965;
        (2) the term ``institution of higher education'' has the 
    meaning given that term in section 101(a) of the Higher Education 
    Act of 1965; and
        (3) the term ``Program'' means the Federal Aviation 
    Administration Science and Technology Scholarship Program 
    established under this section.
    (j)(1) There is authorized to be appropriated to the Federal 
Aviation Administration for the Program $10,000,000 for each fiscal 
year.
    (2) Amounts appropriated under this section shall remain available 
for 2 fiscal years.
    (k) The Administrator may provide temporary internships to full-
time students enrolled in an undergraduate or post-graduate program 
leading to an advanced degree in an aerospace-related or aviation 
safety-related field of endeavor.

SEC. 703. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SCIENCE AND 
              TECHNOLOGY SCHOLARSHIP PROGRAM.

    (a)(1) The Administrator of the National Aeronautics and Space 
Administration shall establish a National Aeronautics and Space 
Administration Science and Technology Scholarship Program to award 
scholarships to individuals that is designed to recruit and prepare 
students for careers in the National Aeronautics and Space 
Administration.
    (2) Individuals shall be selected to receive scholarships under 
this section through a competitive process primarily on the basis of 
academic merit, with consideration given to financial need and the goal 
of promoting the participation of individuals identified in section 33 
or 34 of the Science and Engineering Equal Opportunities Act.
    (3) To carry out the Program the Administrator shall enter into 
contractual agreements with individuals selected under paragraph (2) 
under which the individuals agree to serve as full-time employees of 
the National Aeronautics and Space Administration, for the period 
described in subsection (f)(1), in positions needed by the National 
Aeronautics and Space Administration and for which the individuals are 
qualified, in exchange for receiving a scholarship.
    (b) In order to be eligible to participate in the Program, an 
individual must--
        (1) be enrolled or accepted for enrollment as a full-time 
    student at an institution of higher education, as a junior or 
    senior undergraduate or graduate student, in an academic field or 
    discipline described in the list made available under subsection 
    (d);
        (2) be a United States citizen or permanent resident; and
        (3) at the time of the initial scholarship award, not be an 
    employee (as defined in section 2105 of title 5, United States 
    Code).
    (c) An individual seeking a scholarship under this section shall 
submit an application to the Administrator at such time, in such 
manner, and containing such information, agreements, or assurances as 
the Administrator may require.
    (d) The Administrator shall make publicly available a list of 
academic programs and fields of study for which scholarships under the 
Program may be utilized and shall update the list as necessary.
    (e)(1) The Administrator may provide a scholarship under the 
Program for an academic year if the individual applying for the 
scholarship has submitted to the Administrator, as part of the 
application required under subsection (c), a proposed academic program 
leading to a degree in a program or field of study on the list made 
available under subsection (d).
    (2) An individual may not receive a scholarship under this section 
for more than 4 academic years, unless the Administrator grants a 
waiver.
    (3) The dollar amount of a scholarship under this section for an 
academic year shall be determined under regulations issued by the 
Administrator, but shall in no case exceed the cost of attendance.
    (4) A scholarship provided under this section may be expended for 
tuition, fees, and other authorized expenses as established by the 
Administrator by regulation.
    (5) The Administrator may enter into a contractual agreement with 
an institution of higher education under which the amounts provided for 
a scholarship under this section for tuition, fees, and other 
authorized expenses are paid directly to the institution with respect 
to which the scholarship is provided.
    (f)(1) The period of service for which an individual shall be 
obligated to serve as an employee of the National Aeronautics and Space 
Administration is, except as provided in subsection (h)(2), 24 months 
for each academic year for which a scholarship under this section is 
provided.
    (2)(A) Except as provided in subparagraph (B), obligated service 
under paragraph (1) shall begin not later than 60 days after the 
individual obtains the educational degree for which the scholarship was 
provided.
    (B) The Administrator may defer the obligation of an individual to 
provide a period of service under paragraph (1) if the Administrator 
determines that such a deferral is appropriate. The Administrator shall 
prescribe the terms and conditions under which a service obligation may 
be deferred through regulation.
    (g)(1) Scholarship recipients who fail to maintain a high level of 
academic standing, as defined by the Administrator by regulation, who 
are dismissed from their educational institutions for disciplinary 
reasons, or who voluntarily terminate academic training before 
graduation from the educational program for which the scholarship was 
awarded, shall be in breach of their contractual agreement and, in lieu 
of any service obligation arising under such agreement, shall be liable 
to the United States for repayment within 1 year after the date of 
default of all scholarship funds paid to them and to the institution of 
higher education on their behalf under the agreement, except as 
provided in subsection (h)(2). The repayment period may be extended by 
the Administrator when determined to be necessary, as established by 
regulation.
    (2) Scholarship recipients who, for any reason, fail to begin or 
complete their service obligation after completion of academic 
training, or fail to comply with the terms and conditions of deferment 
established by the Administrator pursuant to subsection (f)(2)(B), 
shall be in breach of their contractual agreement. When recipients 
breach their agreements for the reasons stated in the preceding 
sentence, the recipient shall be liable to the United States for an 
amount equal to--
        (A) the total amount of scholarships received by such 
    individual under this section; plus
        (B) the interest on the amounts of such awards which would be 
    payable if at the time the awards were received they were loans 
    bearing interest at the maximum legal prevailing rate, as 
    determined by the Treasurer of the United States,
multiplied by 3.
    (h)(1) Any obligation of an individual incurred under the Program 
(or a contractual agreement thereunder) for service or payment shall be 
canceled upon the death of the individual.
    (2) The Administrator shall by regulation provide for the partial 
or total waiver or suspension of any obligation of service or payment 
incurred by an individual under the Program (or a contractual agreement 
thereunder) whenever compliance by the individual is impossible or 
would involve extreme hardship to the individual, or if enforcement of 
such obligation with respect to the individual would be contrary to the 
best interests of the Government.
    (i) For purposes of this section--
        (1) the term ``cost of attendance'' has the meaning given that 
    term in section 472 of the Higher Education Act of 1965;
        (2) the term ``institution of higher education'' has the 
    meaning given that term in section 101(a) of the Higher Education 
    Act of 1965; and
        (3) the term ``Program'' means the National Aeronautics and 
    Space Administration Science and Technology Scholarship Program 
    established under this section.
    (j)(1) There is authorized to be appropriated to the National 
Aeronautics and Space Administration for the Program $10,000,000 for 
each fiscal year.
    (2) Amounts appropriated under this section shall remain available 
for 2 fiscal years.
    (k) The Administrator may provide temporary internships to full-
time students enrolled in an undergraduate or post-graduate program 
leading to an advanced degree in an aerospace-related or aviation 
safety-related field of endeavor.

SEC. 704. RESEARCH PROGRAM TO IMPROVE AIRFIELD PAVEMENTS.

    (a) Continuation of Program.--The Administrator of the Federal 
Aviation Administration shall continue the program to consider awards 
to nonprofit concrete and asphalt pavement research foundations to 
improve the design, construction, rehabilitation, and repair of 
airfield pavements to aid in the development of safer, more cost 
effective, and more durable airfield pavements.
    (b) Use of Grants or Cooperative Agreements.--The Administrator may 
use grants or cooperative agreements in carrying out this section.
    (c) Statutory Construction.--Nothing in this section requires the 
Administrator to prioritize an airfield pavement research program above 
safety, security, Flight 21, environment, or energy research programs.

SEC. 705. ENSURING APPROPRIATE STANDARDS FOR AIRFIELD PAVEMENTS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall review and determine whether the Federal Aviation 
Administration's standards used to determine the appropriate thickness 
for asphalt and concrete airfield pavements are in accordance with the 
Federal Aviation Administration's standard 20-year-life requirement 
using the most up-to-date available information on the life of airfield 
pavements. If the Administrator determines that such standards are not 
in accordance with that requirement, the Administrator shall make 
appropriate adjustments to the Federal Aviation Administration's 
standards for airfield pavements.
    (b) Report.--Within 1 year after the date of enactment of this Act, 
the Administrator shall report the results of the review conducted 
under subsection (a) and the adjustments, if any, made on the basis of 
that review to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure and Committee on Science.

SEC. 706. DEVELOPMENT OF ANALYTICAL TOOLS AND CERTIFICATION METHODS.

    The Federal Aviation Administration shall conduct research to 
promote the development of analytical tools to improve existing 
certification methods and to reduce the overall costs for the 
certification of new products.

SEC. 707. RESEARCH ON AVIATION TRAINING.

    Section 48102(h)(1) of title 49, United States Code, is amended--
        (1) by striking ``or'' at the end of subparagraph (B);
        (2) by striking the period at the end of subparagraph (C) and 
    inserting ``; or''; and
        (3) by adding at the end the following new subparagraph:
            ``(D) research on the impact of new technologies and 
        procedures, particularly those related to aircraft flight deck 
        and air traffic management functions, on training requirements 
        for pilots and air traffic controllers.''.

SEC. 708. FAA CENTER FOR EXCELLENCE FOR APPLIED RESEARCH AND TRAINING 
              IN THE USE OF ADVANCED MATERIALS IN TRANSPORT AIRCRAFT.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall develop a Center for Excellence focused on applied 
research and training on the durability and maintainability of advanced 
materials in transport airframe structures. The Center shall--
        (1) promote and facilitate collaboration among academia, the 
    Federal Aviation Administration's Transportation Division, and the 
    commercial aircraft industry, including manufacturers, commercial 
    air carriers, and suppliers; and
        (2) establish goals set to advance technology, improve 
    engineering practices, and facilitate continuing education in 
    relevant areas of study.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator $500,000 for fiscal year 2004 to 
carry out this section.

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

    (a) Establishment.--(1) The Secretary of Transportation shall 
establish in the Federal Aviation Administration a joint planning and 
development office to manage work related to the Next Generation Air 
Transportation System. The office shall be known as the Next Generation 
Air Transportation System Joint Planning and Development Office (in 
this section referred to as the ``Office'').
    (2) The responsibilities of the Office shall include--
        (A) creating and carrying out an integrated plan for a Next 
    Generation Air Transportation System pursuant to subsection (b);
        (B) overseeing research and development on that system;
        (C) creating a transition plan for the implementation of that 
    system;
        (D) coordinating aviation and aeronautics research programs to 
    achieve the goal of more effective and directed programs that will 
    result in applicable research;
        (E) coordinating goals and priorities and coordinating research 
    activities within the Federal Government with United States 
    aviation and aeronautical firms;
        (F) coordinating the development and utilization of new 
    technologies to ensure that when available, they may be used to 
    their fullest potential in aircraft and in the air traffic control 
    system;
        (G) facilitating the transfer of technology from research 
    programs such as the National Aeronautics and Space Administration 
    program and the Department of Defense Advanced Research Projects 
    Agency program to Federal agencies with operational 
    responsibilities and to the private sector; and
        (H) reviewing activities relating to noise, emissions, fuel 
    consumption, and safety conducted by Federal agencies, including 
    the Federal Aviation Administration, the National Aeronautics and 
    Space Administration, the Department of Commerce, and the 
    Department of Defense.
    (3) The Office shall operate in conjunction with relevant programs 
in the Department of Defense, the National Aeronautics and Space 
Administration, the Department of Commerce and the Department of 
Homeland Security. The Secretary of Transportation may request 
assistance from staff from those Departments and other Federal 
agencies.
    (4) In developing and carrying out its plans, the Office shall 
consult with the public and ensure the participation of experts from 
the private sector including representatives of commercial aviation, 
general aviation, aviation labor groups, aviation research and 
development entities, aircraft and air traffic control suppliers, and 
the space industry.
    (b) Integrated Plan.--The integrated plan shall be designed to 
ensure that the Next Generation Air Transportation System meets air 
transportation safety, security, mobility, efficiency, and capacity 
needs beyond those currently included in the Federal Aviation 
Administration's operational evolution plan and accomplishes the goals 
under subsection (c). The integrated plan shall include--
        (1) a national vision statement for an air transportation 
    system capable of meeting potential air traffic demand by 2025;
        (2) a description of the demand and the performance 
    characteristics that will be required of the Nation's future air 
    transportation system, and an explanation of how those 
    characteristics were derived, including the national goals, 
    objectives, and policies the system is designed to further, and the 
    underlying socioeconomic determinants, and associated models and 
    analyses;
        (3) a multiagency research and development roadmap for creating 
    the Next Generation Air Transportation System with the 
    characteristics outlined under clause (ii), including--
            (A) the most significant technical obstacles and the 
        research and development activities necessary to overcome them, 
        including for each project, the role of each Federal agency, 
        corporations, and universities;
            (B) the annual anticipated cost of carrying out the 
        research and development activities; and
            (C) the technical milestones that will be used to evaluate 
        the activities; and
        (4) a description of the operational concepts to meet the 
    system performance requirements for all system users and a timeline 
    and anticipated expenditures needed to develop and deploy the 
    system to meet the vision for 2025.
    (c) Goals.--The Next Generation Air Transportation System shall--
        (1) improve the level of safety, security, efficiency, quality, 
    and affordability of the National Airspace System and aviation 
    services;
        (2) take advantage of data from emerging ground-based and 
    space-based communications, navigation, and surveillance 
    technologies;
        (3) integrate data streams from multiple agencies and sources 
    to enable situational awareness and seamless global operations for 
    all appropriate users of the system, including users responsible 
    for civil aviation, homeland security, and national security;
        (4) leverage investments in civil aviation, homeland security, 
    and national security and build upon current air traffic management 
    and infrastructure initiatives to meet system performance 
    requirements for all system users;
        (5) be scalable to accommodate and encourage substantial growth 
    in domestic and international transportation and anticipate and 
    accommodate continuing technology upgrades and advances;
        (6) accommodate a wide range of aircraft operations, including 
    airlines, air taxis, helicopters, general aviation, and unmanned 
    aerial vehicles; and
        (7) take into consideration, to the greatest extent 
    practicable, design of airport approach and departure flight paths 
    to reduce exposure of noise and emissions pollution on affected 
    residents.
    (d) Reports.--The Administrator of the Federal Aviation 
Administration shall transmit to the Committee on Commerce, Science, 
and Transportation in the Senate and the Committee on Transportation 
and Infrastructure and the Committee on Science in the House of 
Representatives--
        (1) not later than 1 year after the date of enactment of this 
    Act, the integrated plan required in subsection (b); and
        (2) annually at the time of the President's budget request, a 
    report describing the progress in carrying out the plan required 
    under subsection (b) and any changes to that plan.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Office $50,000,000 for each of the fiscal years 
2004 through 2010.

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

    (a) In General.--The Secretary of Transportation shall establish a 
senior policy committee to work with the Next Generation Air 
Transportation System Joint Planning and Development Office. The senior 
policy committee shall be chaired by the Secretary.
    (b) Membership.--In addition to the Secretary, the senior policy 
committee shall be composed of--
        (1) the Administrator of the Federal Aviation Administration 
    (or the Administrator's designee);
        (2) the Administrator of the National Aeronautics and Space 
    Administration (or the Administrator's designee);
        (3) the Secretary of Defense (or the Secretary's designee);
        (4) the Secretary of Homeland Security (or the Secretary's 
    designee);
        (5) the Secretary of Commerce (or the Secretary's designee);
        (6) the Director of the Office of Science and Technology Policy 
    (or the Director's designee); and
        (7) designees from other Federal agencies determined by the 
    Secretary of Transportation to have an important interest in, or 
    responsibility for, other aspects of the system.
    (c) Function.--The senior policy committee shall--
        (1) advise the Secretary of Transportation regarding the 
    national goals and strategic objectives for the transformation of 
    the Nation's air transportation system to meet its future needs;
        (2) provide policy guidance for the integrated plan for the air 
    transportation system to be developed by the Next Generation Air 
    Transportation System Joint Planning and Development Office;
        (3) provide ongoing policy review for the transformation of the 
    air transportation system;
        (4) identify resource needs and make recommendations to their 
    respective agencies for necessary funding for planning, research, 
    and development activities; and
        (5) make legislative recommendations, as appropriate, for the 
    future air transportation system.
    (d) Consultation.--In carrying out its functions under this 
section, the senior policy committee shall consult with, and ensure 
participation by, the private sector (including representatives of 
general aviation, commercial aviation, aviation labor, and the space 
industry), members of the public, and other interested parties and may 
do so through a special advisory committee composed of such 
representatives.

SEC. 711. ROTORCRAFT RESEARCH AND DEVELOPMENT INITIATIVE.

    (a) Objective.--The Administrator of the Federal Aviation 
Administration shall establish a rotorcraft initiative with the 
objective of developing, and demonstrating in a relevant environment, 
within 10 years after the date of the enactment of this Act, 
technologies to enable rotorcraft with the following improvements 
relative to rotorcraft existing as of the date of the enactment of this 
Act:
        (1) 80 percent reduction in noise levels on takeoff and on 
    approach and landing as perceived by a human observer.
        (2) Factor of 10 reduction in vibration.
        (3) 30 percent reduction in empty weight.
        (4) Predicted accident rate equivalent to that of fixed-wing 
    aircraft in commercial service within 10 years after the date of 
    the enactment of this Act.
        (5) Capability for zero-ceiling, zero-visibility operations.
    (b) Implementation.--Within 180 days after the date of the 
enactment of this Act, the Administrator of the Federal Aviation 
Administration, in cooperation with the Administrator of the National 
Aeronautics and Space Administration, shall provide a plan to the 
Committee on Science of the House of Representatives and to the 
Committee on Commerce, Science, and Transportation of the Senate for 
the implementation of the initiative described in subsection (a).

SEC. 712. AIRPORT COOPERATIVE RESEARCH PROGRAM.

    Section 44511 is amended by adding at the end the following new 
subsection:
    ``(f) Airport Cooperative Research Program.--
        ``(1) Establishment.--The Secretary of Transportation shall 
    establish a 4-year pilot airport cooperative research program to--
            ``(A) identify problems that are shared by airport 
        operating agencies and can be solved through applied research 
        but that are not being adequately addressed by existing Federal 
        research programs; and
            ``(B) fund research to address those problems.
        ``(2) Governance.--The Secretary of Transportation shall 
    appoint an independent governing board for the research program 
    established under this subsection. The governing board shall be 
    appointed from candidates nominated by national associations 
    representing public airport operating agencies, airport executives, 
    State aviation officials, and the scheduled airlines, and shall 
    include representatives of appropriate Federal agencies. Section 14 
    of the Federal Advisory Committee Act shall not apply to the 
    governing board.
        ``(3) Implementation.--The Secretary of Transportation shall 
    enter into an arrangement with the National Academy of Sciences to 
    provide staff support to the governing board established under 
    paragraph (2) and to carry out projects proposed by the governing 
    board that the Secretary considers appropriate.
        ``(4) Report.--Not later than 6 months after the expiration of 
    the program under this subsection, the Secretary shall transmit to 
    the Congress a report on the program, including recommendations as 
    to the need for establishing a permanent airport cooperative 
    research program.''.

                       TITLE VIII--MISCELLANEOUS

SEC. 801. DEFINITIONS.

    (a) In General.--Section 47102 is amended--
        (1) by redesignating paragraphs (19) and (20) as paragraphs 
    (24) and (25), respectively;
        (2) by inserting after paragraph (18) the following:
        ``(23) `small hub airport' means a commercial service airport 
    that has at least 0.05 percent but less than 0.25 percent of the 
    passenger boardings.'';
        (3) in paragraph (10) by striking subparagraphs (A) and (B) and 
    inserting following:
            ``(A) means, unless the context indicates otherwise, 
        revenue passenger boardings in the United States in the prior 
        calendar year on an aircraft in service in air commerce, as the 
        Secretary determines under regulations the Secretary 
        prescribes; and
            ``(B) includes passengers who continue on an aircraft in 
        international flight that stops at an airport in the 48 
        contiguous States, Alaska, or Hawaii for a nontraffic 
        purpose.'';
        (4) by redesignating paragraphs (10) through (18) as paragraphs 
    (14) through (22), respectively;
        (5) by inserting after paragraph (9) the following:
        ``(10) `large hub airport' means a commercial service airport 
    that has at least 1.0 percent of the passenger boardings.
        ``(12) `medium hub airport' means a commercial service airport 
    that has at least 0.25 percent but less than 1.0 percent of the 
    passenger boardings.
        ``(13) `nonhub airport' means a commercial service airport that 
    has less than 0.05 percent of the passenger boardings.''; and
        (6) by striking paragraph (6) and inserting the following:
        ``(6) `amount made available under section 48103' or `amount 
    newly made available' means the amount authorized for grants under 
    section 48103 as that amount may be limited in that year by a 
    subsequent law, but as determined without regard to grant 
    obligation recoveries made in that year or amounts covered by 
    section 47107(f).''.
    (b) Conforming Amendment.--Section 47116(b)(1) is amended by 
striking ``(as defined in section 41731 of this title)''.

SEC. 802. REPORT ON AVIATION SAFETY REPORTING SYSTEM.

    Not later than 90 days after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall transmit to 
Congress a report on the long-term goals and objectives of the Aviation 
Safety Reporting System and how such system interrelates with other 
safety reporting systems of the Federal Government.

SEC. 803. ANCHORAGE AIR TRAFFIC CONTROL.

    (a) In General.--Not later than September 30, 2004, the 
Administrator of the Federal Aviation Administration shall complete a 
study and transmit a report to the appropriate committees regarding the 
feasibility of consolidating the Anchorage Terminal Radar Approach 
Control and the Anchorage Air Route Traffic Control Center at the 
existing Anchorage Air Route Traffic Control Center facility.
    (b) Appropriate Committees.--In this section, the term 
``appropriate committees'' means the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on Transportation 
and Infrastructure of the House of Representatives.

SEC. 804. EXTENSION OF METROPOLITAN WASHINGTON AIRPORTS AUTHORITY.

    Section 49108 is amended by striking ``2004'' and inserting 
``2008''.

SEC. 805. IMPROVEMENT OF AVIATION INFORMATION COLLECTION.

    (a) In General.--Section 329(b)(1) is amended by striking ``except 
that in no case'' and all that follows through the semicolon at the end 
and inserting the following: ``except that, if the Secretary requires 
air carriers to provide flight-specific information, the Secretary--
            ``(A) shall not disseminate fare information for a specific 
        flight to the general public for a period of at least 9 months 
        following the date of the flight; and
            ``(B) shall give due consideration to and address 
        confidentiality concerns of carriers, including competitive 
        implications, in any rulemaking prior to adoption of a rule 
        requiring the dissemination to the general public of any 
        flight-specific fare;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the issuance of a final rule to modernize 
the Origin and Destination Survey of Airline Passenger Traffic, 
pursuant to the Advance Notice of Proposed Rulemaking published July 
15, 1998 (Regulation Identifier Number 2105-AC71), that reduces the 
reporting burden for air carriers through electronic filing of the 
survey data collected under section 329(b)(1) of title 49, United 
States Code.

SEC. 806. GOVERNMENT-FINANCED AIR TRANSPORTATION.

    Section 40118(f)(2) is amended by inserting before the period at 
the end the following: ``, except that it shall not include a contract 
for the transportation by air of passengers''.

SEC. 807. AIR CARRIER CITIZENSHIP.

    Section 40102(a)(15)(C) is amended by inserting ``which is under 
the actual control of citizens of the United States,'' before ``and in 
which''.

SEC. 808. UNITED STATES PRESENCE IN GLOBAL AIR CARGO INDUSTRY.

    Section 41703 is amended by adding at the end the following:
    ``(e) Cargo in Alaska.--
        ``(1) In general.--For the purposes of subsection (c), eligible 
    cargo taken on or off any aircraft at a place in Alaska in the 
    course of transportation of that cargo by any combination of 2 or 
    more air carriers or foreign air carriers in either direction 
    between a place in the United States and a place outside the United 
    States shall not be deemed to have broken its international journey 
    in, be taken on in, or be destined for Alaska.
        ``(2) Eligible cargo.--For purposes of paragraph (1), the term 
    `eligible cargo' means cargo transported between Alaska and any 
    other place in the United States on a foreign air carrier (having 
    been transported from, or thereafter being transported to, a place 
    outside the United States on a different air carrier or foreign air 
    carrier) that is carried--
            ``(A) under the code of a United States air carrier 
        providing air transportation to Alaska;
            ``(B) on an air carrier way bill of an air carrier 
        providing air transportation to Alaska;
            ``(C) under a term arrangement or block space agreement 
        with an air carrier; or
            ``(D) under the code of a United States air carrier for 
        purposes of transportation within the United States.''.

SEC. 809. AVAILABILITY OF AIRCRAFT ACCIDENT SITE INFORMATION.

    (a) Domestic Air Transportation.--Section 41113(b) is amended--
        (1) in paragraph (16) by striking ``the air carrier'' the third 
    place it appears; and
        (2) by adding at the end the following:
        ``(17)(A) An assurance that, in the case of an accident that 
    results in significant damage to a manmade structure or other 
    property on the ground that is not government-owned, the air 
    carrier will promptly provide notice, in writing, to the extent 
    practicable, directly to the owner of the structure or other 
    property about liability for any property damage and means for 
    obtaining compensation.
        ``(B) At a minimum, the written notice shall advise an owner 
    (i) to contact the insurer of the property as the authoritative 
    source for information about coverage and compensation; (ii) to not 
    rely on unofficial information offered by air carrier 
    representatives about compensation by the air carrier for accident-
    site property damage; and (iii) to obtain photographic or other 
    detailed evidence of property damage as soon as possible after the 
    accident, consistent with restrictions on access to the accident 
    site.
        ``(18) An assurance that, in the case of an accident in which 
    the National Transportation Safety Board conducts a public hearing 
    or comparable proceeding at a location greater than 80 miles from 
    the accident site, the air carrier will ensure that the proceeding 
    is made available simultaneously by electronic means at a location 
    open to the public at both the origin city and destination city of 
    the air carrier's flight if that city is located in the United 
    States.''.
    (b) Foreign Air Transportation.--Section 41313(c) is amended by 
adding at the end the following:
        ``(17) Notice concerning liability for manmade structures.--
            ``(A) In general.--An assurance that, in the case of an 
        accident that results in significant damage to a manmade 
        structure or other property on the ground that is not 
        government-owned, the foreign air carrier will promptly provide 
        notice, in writing, to the extent practicable, directly to the 
        owner of the structure or other property about liability for 
        any property damage and means for obtaining compensation.
            ``(B) Minimum contents.--At a minimum, the written notice 
        shall advise an owner (i) to contact the insurer of the 
        property as the authoritative source for information about 
        coverage and compensation; (ii) to not rely on unofficial 
        information offered by foreign air carrier representatives 
        about compensation by the foreign air carrier for accident-site 
        property damage; and (iii) to obtain photographic or other 
        detailed evidence of property damage as soon as possible after 
        the accident, consistent with restrictions on access to the 
        accident site.
        ``(18) Simultaneous electronic transmission of ntsb hearing.--
    An assurance that, in the case of an accident in which the National 
    Transportation Safety Board conducts a public hearing or comparable 
    proceeding at a location greater than 80 miles from the accident 
    site, the foreign air carrier will ensure that the proceeding is 
    made available simultaneously by electronic means at a location 
    open to the public at both the origin city and destination city of 
    the foreign air carrier's flight if that city is located in the 
    United States.''.
    (c) Update Plans.--Air carriers and foreign air carriers shall 
update their plans under sections 41113 and 41313 of title 49, United 
States Code, respectively, to reflect the amendments made by 
subsections (a) and (b) of this section not later than 90 days after 
the date of enactment of this Act.

SEC. 810. NOTICE CONCERNING AIRCRAFT ASSEMBLY.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end the following:

``Sec. 41723. Notice concerning aircraft assembly

    ``The Secretary of Transportation shall require, beginning after 
the last day of the 18-month period following the date of enactment of 
this section, an air carrier using an aircraft to provide scheduled 
passenger air transportation to display a notice, on an information 
placard available to each passenger on the aircraft, that informs the 
passengers of the nation in which the aircraft was finally 
assembled.''.
    (b) Conforming Amendment.--The analysis for chapter 417 is amended 
by inserting after the item relating to section 41722 the following:

``41723. Notice concerning aircraft assembly.''.

SEC. 811. TYPE CERTIFICATES.

    Section 44704(a) is amended by adding at the end the following:
    ``(3) If the holder of a type certificate agrees to permit another 
person to use the certificate to manufacture a new aircraft, aircraft 
engine, propeller, or appliance, the holder shall provide the other 
person with written evidence, in a form acceptable to the 
Administrator, of that agreement. Such other person may manufacture a 
new aircraft, aircraft engine, propeller, or appliance based on a type 
certificate only if such other person is the holder of the type 
certificate or has permission from the holder.''.

SEC. 812. RECIPROCAL AIRWORTHINESS CERTIFICATION.

    (a) In General.--As part of their bilateral negotiations with 
foreign nations and their civil aviation counterparts, the Secretary of 
State and the Administrator of the Federal Aviation Administration 
shall facilitate the reciprocal airworthiness certification of aviation 
products.
    (b) Reciprocal Airworthiness Defined.--In this section, the term 
``reciprocal airworthiness certification of aviation products'' means 
that the regulatory authorities of each nation perform a similar review 
in certifying or validating the certification of aircraft and aircraft 
components of other nations.

SEC. 813. INTERNATIONAL ROLE OF THE FAA.

    Section 40104(b) is amended to read as follows:
    ``(b) International Role of the FAA.--The Administrator shall 
promote and achieve global improvements in the safety, efficiency, and 
environmental effect of air travel by exercising leadership with the 
Administrator's foreign counterparts, in the International Civil 
Aviation Organization and its subsidiary organizations, and other 
international organizations and fora, and with the private sector.''.

SEC. 814. FLIGHT ATTENDANT CERTIFICATION.

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

``Sec. 44728. Flight attendant certification

    ``(a) Certificate Required.--
        ``(1) In general.--No person may serve as a flight attendant 
    aboard an aircraft of an air carrier unless that person holds a 
    certificate of demonstrated proficiency from the Administrator of 
    the Federal Aviation Administration. Upon the request of the 
    Administrator or an authorized representative of the National 
    Transportation Safety Board or another Federal agency, a person who 
    holds such a certificate shall present the certificate for 
    inspection within a reasonable period of time after the date of the 
    request.
        ``(2) Special rule for current flight attendants.--An 
    individual serving as a flight attendant on the effective date of 
    this section may continue to serve aboard an aircraft as a flight 
    attendant until completion by that individual of the required 
    recurrent or requalification training and subsequent certification 
    under this section.
        ``(3) Treatment of flight attendant after notification.--On the 
    date that the Administrator is notified by an air carrier that an 
    individual has the demonstrated proficiency to be a flight 
    attendant, the individual shall be treated for purposes of this 
    section as holding a certificate issued under the section.
    ``(b) Issuance of Certificate.--The Administrator shall issue a 
certificate of demonstrated proficiency under this section to an 
individual after the Administrator is notified by the air carrier that 
the individual has successfully completed all the training requirements 
for flight attendants approved by the Administrator.
    ``(c) Designation of Person To Determine Successful Completion of 
Training.--In accordance with part 183 of chapter 14, Code of Federal 
Regulation, the director of operations of an air carrier is designated 
to determine that an individual has successfully completed the training 
requirements approved by the Administrator for such individual to serve 
as a flight attendant.
    ``(d) Specifications Relating to Certificates.--Each certificate 
issued under this section shall--
        ``(1) be numbered and recorded by the Administrator;
        ``(2) contain the name, address, and description of the 
    individual to whom the certificate is issued;
        ``(3) is similar in size and appearance to certificates issued 
    to airmen;
        ``(4) contain the airplane group for which the certificate is 
    issued; and
        ``(5) be issued not later than 120 days after the Administrator 
    receives notification from the air carrier of demonstrated 
    proficiency and, in the case of an individual serving as flight 
    attendant on the effective date of this section, not later than 1 
    year after such effective date.
    ``(e) Approval of Training Programs.--Air carrier flight attendant 
training programs shall be subject to approval by the Administrator. 
All flight attendant training programs approved by the Administrator in 
the 1-year period ending on the date of enactment of this section shall 
be treated as providing a demonstrated proficiency for purposes of 
meeting the certification requirements of this section.
    ``(f) Flight Attendant Defined.--In this section, the term `flight 
attendant' means an individual working as a flight attendant in the 
cabin of an aircraft that has 20 or more seats and is being used by an 
air carrier to provide air transportation.''.
    (b) Conforming Amendment.--The analysis for chapter 447 is further 
amended by adding at the end the following:

``44728. Flight attendant certification.''.

    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the 365th day following the date of enactment of 
this Act.

SEC. 815. AIR QUALITY IN AIRCRAFT CABINS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall undertake the studies and analysis called for in 
the report of the National Research Council entitled ``The Airliner 
Cabin Environment and the Health of Passengers and Crew''.
    (b) Required Activities.--In carrying out this section, the 
Administrator, at a minimum, shall--
        (1) conduct surveillance to monitor ozone in the cabin on a 
    representative number of flights and aircraft to determine 
    compliance with existing Federal Aviation Regulations for ozone;
        (2) collect pesticide exposure data to determine exposures of 
    passengers and crew;
        (3) analyze samples of residue from aircraft ventilation ducts 
    and filters after air quality incidents to identify the 
    contaminants to which passengers and crew were exposed;
        (4) analyze and study cabin air pressure and altitude; and
        (5) establish an air quality incident reporting system.
    (c) Report.--Not later than 30 months after the date of enactment 
of this Act, the Administrator shall transmit to Congress a report on 
the findings of the Administrator under this section.

SEC. 816. RECOMMENDATIONS CONCERNING TRAVEL AGENTS.

    (a) Report.--Not later than 6 months after the date of enactment of 
this Act, the Secretary of Transportation shall transmit to Congress a 
report on any actions that should be taken with respect to 
recommendations made by the National Commission to Ensure Consumer 
Information and Choice in the Airline Industry on--
        (1) the travel agent arbiter program; and
        (2) the special box on tickets for agents to include their 
    service fee charges.
    (b) Consultation.--In preparing this report, the Secretary shall 
consult with representatives from the airline and travel agent 
industry.

SEC. 817. REIMBURSEMENT FOR LOSSES INCURRED BY GENERAL AVIATION 
              ENTITIES.

    (a) In General.--The Secretary of Transportation may make grants to 
reimburse the following general aviation entities for the security 
costs incurred and revenue foregone as a result of the restrictions 
imposed by the Federal Government following the terrorist attacks on 
the United States that occurred on September 11, 2001:
        (1) General aviation entities that operate at Ronald Reagan 
    Washington National Airport.
        (2) Airports that are located within 15 miles of Ronald Reagan 
    Washington National Airport and were operating under security 
    restrictions on the date of enactment of this Act and general 
    aviation entities operating at those airports.
        (3) General aviation entities affected by implementation of 
    section 44939 of title 49, United States Code.
        (4) General aviation entities that were affected by Federal 
    Aviation Administration Notices to Airmen FDC 2/1099 and 3/1862 or 
    section 352 of the Department of Transportation and Related 
    Agencies Appropriations Act, 2003 (Public Law 108-7, division I), 
    or both.
        (5) Sightseeing operations that were not authorized to resume 
    in enhanced class B air space under Federal Aviation Administration 
    notice to airmen 1/1225.
    (b) Documentation.--Reimbursement under this section shall be made 
in accordance with sworn financial statements or other appropriate data 
submitted by each general aviation entity demonstrating the costs 
incurred and revenue foregone to the satisfaction of the Secretary.
    (c) General Aviation Entity Defined.--In this section, the term 
``general aviation entity'' means any person (other than a scheduled 
air carrier or foreign air carrier, as such terms are defined in 
section 40102 of title 49, United States Code) that--
        (1) operates nonmilitary aircraft under part 91 of title 14, 
    Code of Federal Regulations, for the purpose of conducting its 
    primary business;
        (2) manufactures nonmilitary aircraft with a maximum seating 
    capacity of fewer than 20 passengers or aircraft parts to be used 
    in such aircraft;
        (3) provides services necessary for nonmilitary operations 
    under such part 91; or
        (4) operates an airport, other than a primary airport (as such 
    terms are defined in such section 40102), that--
            (A) is listed in the national plan of integrated airport 
        systems developed by the Federal Aviation Administration under 
        section 47103 of such title; or
            (B) is normally open to the public, is located within the 
        confines of enhanced class B airspace (as defined by the 
        Federal Aviation Administration in Notice to Airmen FDC 1/
        0618), and was closed as a result of an order issued by the 
        Federal Aviation Administration in the period beginning 
        September 11, 2001, and ending January 1, 2002, and remained 
        closed as a result of that order on January 1, 2002.
Such term includes fixed based operators, flight schools, manufacturers 
of general aviation aircraft and products, persons engaged in 
nonscheduled aviation enterprises, and general aviation independent 
contractors.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000. Such sums shall 
remain available until expended.

SEC. 818. INTERNATIONAL AIR SHOW.

    If the Secretary of Defense conducts activities necessary to enable 
the United States to host a major international air show in the United 
States, the Secretary of Defense shall coordinate such activities with 
the Secretary of Transportation and the Secretary of Commerce.

SEC. 819. REPORT ON CERTAIN MARKET DEVELOPMENTS AND GOVERNMENT 
              POLICIES.

    Within 6 months after the date of enactment of this Act, the 
Department of Commerce, in consultation with the Department of 
Transportation and other appropriate Federal agencies, shall submit to 
the Senate Committee on Commerce, Science, and Transportation, the 
House of Representatives Committee on Science, and the House of 
Representatives Committee on Transportation and Infrastructure a report 
about market developments and government policies influencing the 
competitiveness of the United States jet transport aircraft industry 
that--
        (1) describes the structural characteristics of the United 
    States and the European Union jet transport industries, and the 
    markets for these industries;
        (2) examines the global market factors affecting the jet 
    transport industries in the United States and the European Union, 
    such as passenger and freight airline purchasing patterns, the rise 
    of low-cost carriers and point-to-point service, the evolution of 
    new market niches, and direct and indirect operating cost trends;
        (3) reviews government regulations in the United States and the 
    European Union that have altered the competitive landscape for jet 
    transport aircraft, such as airline deregulation, certification and 
    safety regulations, noise and emissions regulations, government 
    research and development programs, advances in air traffic control 
    and other infrastructure issues, corporate and air travel tax 
    issues, and industry consolidation strategies;
        (4) analyzes how changes in the global market and government 
    regulations have affected the competitive position of the United 
    States aerospace and aviation industry vis-a-vis the European Union 
    aerospace and aviation industry; and
        (5) describes any other significant developments that affect 
    the market for jet transport aircraft.

SEC. 820. INTERNATIONAL AIR TRANSPORTATION.

    It is the sense of Congress that, in an effort to modernize its 
regulations, the Department of Transportation should formally define 
``Fifth Freedom'' and ``Seventh Freedom'' consistently for both 
scheduled and charter passenger and cargo traffic.

SEC. 821. REIMBURSEMENT OF AIR CARRIERS FOR CERTAIN SCREENING AND 
              RELATED ACTIVITIES.

    The Secretary of Homeland Security, subject to the availability of 
funds (other than amounts in the Aviation Trust Fund) provided for this 
purpose, shall reimburse air carriers and airports for--
        (1) the screening of catering supplies; and
        (2) checking documents at security checkpoints.

SEC. 822. CHARTER AIRLINES.

    (a) In General.--Section 41104(b)(1) is amended--
        (1) by striking ``paragraph (3)'' and inserting ``paragraphs 
    (3) and (4)'';
        (2) by inserting a comma after ``regularly scheduled charter 
    air transportation''; and
        (3) by striking ``flight unless such air transportation'' and 
    all that follows through the period at the end and inserting the 
    following: ``flight, to or from an airport that--
            ``(A) does not have an airport operating certificate issued 
        under part 139 of title 14, Code of Federal Regulations (or any 
        subsequent similar regulation); or
            ``(B) has an airport operating certificate issued under 
        part 139 of title 14, Code of Federal Regulations (or any 
        subsequent similar regulation) if the airport--
                ``(i) is a reliever airport (as defined in section 
            47102) and is designated as such in the national plan of 
            integrated airports maintained under section 47103; and
                ``(ii) is located within 20 nautical miles (22 statute 
            miles) of 3 or more airports that each annually account for 
            at least 1 percent of the total United States passenger 
            enplanements and at least 2 of which are operated by the 
            sponsor of the reliever airport.''.
    (b) Waivers.--Section 41104(b) is amended by adding at the end the 
following:
        ``(4) Waivers.--The Secretary may waive the application of 
    paragraph (1)(B) in cases in which the Secretary determines that 
    the public interest so requires.''.

SEC. 823. GENERAL AVIATION FLIGHTS AT RONALD REAGAN WASHINGTON NATIONAL 
              AIRPORT.

    (a) Security Plan.--The Secretary of Homeland Security shall 
develop and implement a security plan to permit general aviation 
aircraft to land and take off at Ronald Reagan Washington National 
Airport.
    (b) Landings and Takeoffs.--The Administrator of the Federal 
Aviation Administration shall allow general aviation aircraft that 
comply with the requirements of the security plan to land and take off 
at the Airport except during any period that the President suspends the 
plan developed under subsection (a) due to national security concerns.
    (c) Report.--If the President suspends the security plan developed 
under subsection (a), the President shall submit to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure a report 
on the reasons for the suspension not later than 30 days following the 
first day of the suspension. The report may be submitted in classified 
form.

SEC. 824. REVIEW OF AIR CARRIER COMPENSATION.

    Not later than 6 months after the date of enactment of this Act, 
the Comptroller General shall submit to Congress a report on the 
criteria and procedures used by the Secretary of Transportation under 
the Air Transportation Safety and System Stabilization Act (Public Law 
107-42) to compensate air carriers after the terrorist attack of 
September 11, 2001, with a particular focus on whether it is 
appropriate--
        (1) to compensate air carriers for the decrease in value of 
    their aircraft after September 11, 2001; and
        (2) to ensure that comparable air carriers receive comparable 
    percentages of the maximum compensation payable under section 
    103(b)(2) of such Act (49 U.S.C. 40101 note).

SEC. 825. NOISE CONTROL PLAN FOR CERTAIN AIRPORTS.

    (a) In General.--Notwithstanding chapter 475 of title 49, United 
States Code, or any other provision of law or regulation, a sponsor of 
a commercial service airport that does not own the airport land and is 
a party to a long-term lease agreement with a Federal agency (other 
than the Department of Defense or the Department of Transportation) may 
impose restrictions on, or prohibit, the operation of Stage 2 aircraft 
weighing less than 75,000 pounds, in order to help meet the noise 
control plan contained within the lease agreement. A use restriction 
imposed pursuant to this section must contain reasonable exemptions for 
public health and safety.
    (b) Public Notice and Comment.--Prior to imposing restrictions on, 
or prohibiting, the operation of Stage 2 aircraft weighing less than 
75,000 pounds, the airport sponsor must provide reasonable notice and 
the opportunity to comment on the proposed airport use restriction 
limited to no more than 90 days.
    (c) Definitions.--In this section, the terms ``Stage 2 aircraft'' 
and ``Stage 3 aircraft'' have the same meaning as those terms have in 
chapter 475 of title 49, United States Code.

SEC. 826. GAO REPORT ON AIRLINES' ACTIONS TO IMPROVE FINANCES AND ON 
              EXECUTIVE COMPENSATION.

    (a) Finding.--Congress finds that the United States Government has 
by law provided substantial financial assistance to United States 
commercial airlines in the form of war risk insurance and reinsurance 
and other economic benefits and has imposed substantial economic and 
regulatory burdens on those airlines. In order to determine the 
economic viability of the domestic commercial airline industry and to 
evaluate the need for additional measures or the modification of 
existing laws, Congress needs more frequent information and 
independently verified information about the financial condition of 
these airlines.
    (b) GAO Report.--Not later than one year after the date of 
enactment of this Act, the Comptroller General shall prepare a report 
for Congress analyzing the financial condition of the United States 
airline industry in its efforts to reduce the costs, improve the 
earnings and profits and balances of each individual air carrier. The 
report shall recommend steps that the industry should take to become 
financially self-sufficient.
    (c) GAO Authority.--In order to compile the report required by 
subsection (b), the Comptroller General, or any of the Comptroller 
General's duly authorized representatives, shall have access for the 
purpose of audit and examination to any books, accounts, documents, 
papers, and records of such air carriers that relate to the information 
required to compile the report. The Comptroller General shall submit 
with the report a certification as to whether the Comptroller General 
has had access to sufficient information to make informed judgments on 
the matters covered by the report.
    (d) Reports to Congress.--The Comptroller General shall transmit 
the report required by subsection (b) to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure.

SEC. 827. PRIVATE AIR CARRIAGE IN ALASKA.

    (a) In General.--Due to the demands of conducting business within 
and from the State of Alaska, the Secretary of Transportation shall 
permit, under the operating rules of part 91 of title 14 of the Code of 
Federal Regulations where common carriage is not involved, a company, 
located in the State of Alaska, to organize a subsidiary where the only 
enterprise of the subsidiary is to provide air carriage of officials, 
employees, guests, and property of the company, or its affiliate, when 
the carriage--
        (1) originates or terminates in the State of Alaska;
        (2) is by an aircraft with no more than 20 seats;
        (3) is within the scope of, and incidental to, the business of 
    the company or its affiliate; and
        (4) no charge, assessment, or fee is made for the carriage in 
    excess of the cost of owning, operating, and maintaining the 
    airplane.
    (b) Limitation on Statutory Construction.--Nothing in this 
subsection shall be construed as prohibiting a company from making 
intermediate stops in providing air carriage under this section.

SEC. 828. REPORT ON WAIVERS OF PREFERENCE FOR BUYING GOODS PRODUCED IN 
              THE UNITED STATES.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Transportation shall submit to Congress a report on 
the waiver contained in section 50101(b) of title 49, United States 
Code (relating to buying goods produced in the United States). The 
report shall, at a minimum, include--
        (1) a list of all waivers granted pursuant to that section 
    during the 2-year period ending on the date of enactment of that 
    section; and
        (2) for each such waiver--
            (A) the specific authority under such section 50101(b) for 
        granting the waiver; and
            (B) the rationale for granting the waiver.

SEC. 829. NAVIGATION FEES.

    (a) In General.--Section 4(b) of the Rivers and Harbors 
Appropriation Act of July 5, 1884 (33 U.S.C. 5(b); 116 Stat. 2133), is 
amended--
        (1) by striking ``or'' at the end of paragraph (1);
        (2) by striking the period at the end of paragraph (2) and 
    inserting ``; or''; and
        (3) by adding at the end the following:
        ``(3) property taxes on vessels or watercraft, other than 
    vessels or watercraft that are primarily engaged in foreign 
    commerce if those taxes are permissible under the United States 
    Constitution.''.
    (b) Effective Date.--The amendment made by subsection (a) is 
effective on and after November 25, 2002.

   TITLE IX--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
                               AUTHORITY

SEC. 901. EXTENSION OF EXPENDITURE AUTHORITY.

    (a) In General.--Paragraph (1) of section 9502(d) of the Internal 
Revenue Code of 1986 (relating to expenditures from Airport and Airway 
Trust Fund) is amended--
        (1) by striking ``October 1, 2003'' and inserting ``October 1, 
    2007'', and
        (2) by inserting before the semicolon at the end of 
    subparagraph (A) the following: ``or the Vision 100--Century of 
    Aviation Reauthorization Act''.
    (b) Conforming Amendment.--Paragraph (2) of section 9502(f) of the 
Internal Revenue Code of 1986 is amended by striking ``October 1, 
2003'' and inserting ``October 1, 2007''.

SEC. 902. TECHNICAL CORRECTION TO FLIGHT SEGMENT.

    (a) Special Rule.--Section 4261(e)(4) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new subparagraph:
            ``(D) Special rule for amounts paid for domestic segments 
        beginning after 2002.--If an amount is paid during a calendar 
        year for a domestic segment beginning in a later calendar year, 
        then the rate of tax under subsection (b) on such amount shall 
        be the rate in effect for the calendar year in which such 
        amount is paid.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the provisions of the Taxpayer Relief Act 
of 1997 to which they relate.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.