[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 824 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 824

   To reauthorize the Federal Aviation Administration, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 8, 2003

 Mr. McCain (for himself, Mr. Hollings, Mr. Lott, and Mr. Rockefeller) 
introduced the following bill; which was read twice and referred to the 
           Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
   To reauthorize 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; AMENDMENT OF TITLE 49.

    (a) Short Title.--This Act may be cited as the ``Aviation 
Investment and Revitalization Vision Act''.
    (b) Amendment of Title 49.--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. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

        Sec. 1. Short title; amendment of title 49.
        Sec. 2. Table of contents.
                              Title I--Reauthorizations; FAA Management
        Sec. 101. Airport improvement program.
        Sec. 102. Airway facilities improvement program.
        Sec. 103. FAA operations.
        Sec. 104. Research, engineering, and development.
        Sec. 105. Other programs.
        Sec. 106. Reorganization of the Air Traffic Services 
                            Subcommittee.
        Sec. 107. Clarification of responsibilities of chief operating 
                            officer.
                              Title II--Airport Development
        Sec. 201. National capacity projects.
        Sec. 202. Categorical exclusions.
        Sec. 203. Alternatives analysis.
        Sec. 204. Increase in apportionment for, and flexibility of, 
                            noise compatibility planning programs.
        Sec. 205. Secretary of Transportation to identify airport 
                            congestion-relief projects and forecast 
                            airport operations annually.
        Sec. 206. Design-build contracting.
        Sec. 207. Special rule for airport in Illinois.
        Sec. 208. Elimination of duplicative requirements.
        Sec. 209. Streamlining the passenger facility fee program.
        Sec. 210. Quarterly status reports.
        Sec. 211. Noise disclosure requirements.
        Sec. 212. Prohibition on requiring airports to provide rent-
                            free space for FAA or TSA.
        Sec. 213. Special rules for fiscal year 2004.
                              Title III--Airline Service Development
        Sec. 301. Delay reduction meetings.
        Sec. 302. Reauthorization of essential air service program.
        Sec. 303. Small community air service development pilot 
                            program.
        Sec. 304. DOT study of competition and access problems at large 
                            and medium hub airports.
        Sec. 305. Competition disclosure requirement for large and 
                            medium hub airports.
                              Title IV--Aviation Security
        Sec. 401. Study of effectiveness of transportation security 
                            system.
        Sec. 402. Aviation security capital fund.
        Sec. 403. Technical amendments related to security-related 
                            airport development.
                              Title V--Miscellaneous
        Sec. 501. Extension of war risk insurance authority.
        Sec. 502. Cost-sharing of air traffic modernization projects.
        Sec. 503. Counterfeit or fraudulently represented parts 
                            violations.
        Sec. 504. Clarifications to procurement authority.

               TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 48103 is amended--
            (1) by inserting ``(a) In General.--'' before ``The'';
            (2) by striking ``and'' in paragraph (4);
            (3) by striking ``2003.'' in paragraph (5) and inserting 
        ``2003;'';
            (4) by inserting after paragraph (5) the following:
            ``(6) $3,400,000,000 for fiscal year 2004;
            ``(7) $3,500,000,000 for fiscal year 2005; and
            ``(8) $3,600,000,000 for fiscal year 2006.''; and
            (5) by adding at the end the following:
    ``(b) Administrative Expenses.--From the amounts authorized by 
paragraphs (6) through (8) of subsection (a), there shall be available 
for administrative expenses relating to the airport improvement 
program, passenger facility fee approval and oversight, national 
airport system planning, airport standards development and enforcement, 
airport certification, airport-related environmental activities 
(including legal service), to remain available until expended--
            ``(1) for fiscal year 2004, $69,737,000;
            ``(2) for fiscal year 2005, $71,816,000; and
            ``(3) for fiscal year 2006, $74,048,000.''.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``2003,'' and inserting ``2006,''.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

    Section 48101(a) is amended by adding at the end the following:
            ``(6) $2,916,000,000 for fiscal year 2004.
            ``(7) $2,971,000,000 for fiscal year 2005.
            ``(8) $3,030,000,000 for fiscal year 2006.''.

SEC. 103. FAA OPERATIONS.

    Section 106(k)(1) is amended--
            (1) by striking ``and'' in subparagraph (C);
            (2) by striking ``2003.'' in subparagraph (D) and inserting 
        ``2003;''; and
            (3) by adding at the end the following:
                    ``(E) $7,591,000,000 for fiscal year 2004;
                    ``(F) $7,732,000,000 for fiscal year 2005; and
                    ``(G) $7,889,000,000 for fiscal year 2006.''.

SEC. 104. RESEARCH, ENGINEERING AND DEVELOPMENT.

    Section 48102 is amended--
            (1) by striking paragraphs (1) through (8) of subsection 
        (a) and inserting:
            ``(1) For fiscal year 2004, $289,000,000.
            ``(2) For fiscal year 2005, $204,000,000.
            ``(3) For fiscal year 2006, $317,000,000.''; and
            (2) by redesignating subsection (h) as subsection (g).

SEC. 105. OTHER PROGRAMS.

    Section 106 of the Wendell H. Ford Aviation Investment and Reform 
Act for the 21st Century is amended--
            (1) by striking ``2003'' in subsection (a)(1)(A) and 
        subsection (c)(2) and inserting ``2006''; and
            (2) by striking ``2003,'' in subsection (a)(2) and 
        inserting ``2006,''.

SEC. 106. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE.

    (a) In General.--Section 106 is amended--
            (1) by redesignating subsections (q) and (r) as subsections 
        (r) and (s), respectively; and
            (2) by inserting after subsection (p) the following:
    ``(q) Air Traffic Management Committee.--
            ``(1) Establishment.--The Secretary of Transportation shall 
        establish an advisory committee which shall be known as the Air 
        Traffic Services Committee (in this subsection referred to as 
the `Committee').
            ``(2) Membership.--
                    ``(A) Composition and appointment.--The Committee 
                shall be composed of--
                            ``(i) the Administrator of the Federal 
                        Aviation Administration, who shall serve as 
                        chair; and
                            ``(ii) 4 members, to be appointed by the 
                        Secretary, after consultation with the 
                        Committee on Transportation and Infrastructure 
                        of the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                    ``(B) No federal officer or employee.--No member 
                appointed under subparagraph (A)(ii) may serve as an 
                officer or employee of the United States Government 
                while serving as a member of the Committee.
                    ``(C) Eligibility.--Members appointed under 
                subparagraph (A)(ii) shall--
                            ``(i) have a fiduciary responsibility to 
                        represent the public interest;
                            ``(ii) be citizens of the United States; 
                        and
                            ``(iii) 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:
                                    ``(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.
                        At least one of such members should have a 
                        background in managing large organizations 
                        successfully. In the aggregate, such members 
                        should collectively bring to bear expertise in 
                        all of the areas described in subclauses (I) 
                        through (VI).
                    ``(D) Prohibitions on members of committee.--No 
                member appointed under subparagraph (A)(ii) 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) Claims against members.--
                            ``(i) In general.--A member appointed under 
                        subparagraph (A)(ii) shall have no personal 
                        liability under Federal law with respect to any 
                        claim arising out of or resulting from an act 
                        or omission by such member within the scope of 
                        service as a member of the Air Traffic Services 
                        Committee.
                            ``(ii) Effect on other law.--This 
                        subparagraph shall not be construed--
                                    ``(I) to affect any other immunity 
                                or protection that may be available to 
                                a member of the Committee under 
                                applicable law with respect to such 
                                transactions;
                                    ``(II) to affect any other right or 
                                remedy against the United States under 
                                applicable law; or
                                    ``(III) to limit or alter in any 
                                way the immunities that are available 
                                under applicable law for Federal 
                                officers and employees.
                    ``(F) Ethical considerations.--
                            ``(i) Financial disclosure.--During the 
                        entire period that an individual appointed 
                        under subparagraph (A)(ii) is a member of the 
                        Committee, such individual shall be treated as 
                        serving as an officer or employee referred to 
                        in section 101(f) of the Ethics in Government 
                        Act of 1978 for purposes of title I of such 
                        Act; except that section 101(d) of such Act 
                        shall apply without regard to the number of 
                        days of service in the position.
                            ``(ii) Restrictions on post-employment.--
                        For purposes of section 207(c) of title 18, an 
                        individual appointed under subparagraph (A)(ii) 
                        shall be treated as an employee referred to in 
                        section 207(c)(2)(A)(i) of such title during 
                        the entire period the individual is a member of 
                        the Committee; except that subsections 
                        (c)(2)(B) and (f) of section 207 of such title 
                        shall not apply.
                    ``(G) Terms for air traffic services committee 
                members.--A member appointed under subparagraph (A)(ii) 
                shall be appointed for a term of 5 years.
                    ``(H) Reappointment.--An individual may not be 
                appointed under subparagraph (A)(ii) to more than two 
                5-year terms.
                    ``(I) Vacancy.--Any vacancy on the Committee shall 
                be filled in the same manner as the original 
                appointment. Any member appointed to fill a vacancy 
                occurring before the expiration of the term for which 
                the member's predecessor was appointed shall be 
                appointed for the remainder of that term.
                    ``(J) Continuation in office.--A member whose term 
                expires shall continue to serve until the date on which 
                the member's successor takes office.
                    ``(K) Removal.--Any member appointed under 
                subparagraph (A)(ii) may be removed for cause by the 
                Secretary.
            ``(3) General responsibilities.--
                    ``(A) Oversight.--The Committee shall oversee the 
                administration, management, conduct, direction, and 
                supervision of the air traffic control system.
                    ``(B) Confidentiality.--The Committee shall ensure 
                that appropriate confidentiality is maintained in the 
                exercise of its duties.
            ``(4) Specific responsibilities.--The Committee shall have 
        the following specific responsibilities:
                    ``(A) Strategic plans.--To review, approve, and 
                monitor the strategic plan for the air traffic control 
                system, including the establishment of--
                            ``(i) a mission and objectives;
                            ``(ii) standards of performance relative to 
                        such mission and objectives, including safety, 
                        efficiency, and productivity; and
                            ``(iii) annual and long-range strategic 
                        plans.
                    ``(B) Modernization and improvement.--To review and 
                approve--
                            ``(i) methods to accelerate air traffic 
                        control modernization and improvements in 
                        aviation safety related to air traffic control; 
                        and
                            ``(ii) procurements of air traffic control 
                        equipment in excess of $100,000,000.
                    ``(C) Operational plans.--To review the operational 
                functions of the air traffic control system, 
                including--
                            ``(i) plans for modernization of the air 
                        traffic control system;
                            ``(ii) plans for increasing productivity or 
                        implementing cost-saving measures; and
                            ``(iii) plans for training and education.
                    ``(D) Management.--To--
                            ``(i) review and approve the 
                        Administrator's appointment of a Chief 
                        Operating Officer under section 106(s);
                            ``(ii) review the Administrator's 
                        selection, evaluation, and compensation of 
                        senior executives of the Administration who 
                        have program management responsibility over 
                        significant functions of the air traffic 
                        control system;
                            ``(iii) review and approve the 
                        Administrator's plans for any major 
                        reorganization of the Administration that would 
                        impact on the management of the air traffic 
                        control system;
                            ``(iv) review and approve the 
                        Administrator's cost accounting and financial 
                        management structure and technologies to help 
                        ensure efficient and cost-effective air traffic 
                        control operation; and
                            ``(v) review the performance and 
                        compensation of managers responsible for major 
                        acquisition projects, including the ability of 
                        the managers to meet schedule and budget 
                        targets.
                    ``(E) Budget.--To--
                            ``(i) review and approve the budget request 
                        of the Administration related to the air 
                        traffic control system prepared by the 
                        Administrator;
                            ``(ii) submit such budget request to the 
                        Secretary; and
                            ``(iii) ensure that the budget request 
                        supports the annual and long-range strategic 
                        plans.
        ``(5) Congressional review of pre-omb budget request.--The 
        Secretary shall submit the budget request referred to in 
        paragraph (4)(E)(ii) for any fiscal year to the President who 
        shall transmit such request, without revision, to the 
        Committees on Transportation and Infrastructure and 
        Appropriations of the House of Representatives and the 
        Committees on Commerce, Science, and Transportation and 
        Appropriations of the Senate, together with the President's 
        annual budget request for the Federal Aviation Administration 
        for such fiscal year.
            ``(6) Committee personnel matters.--
                    ``(A) Compensation of members.--Each member of the 
                Committee, other than the chair and vice chair, shall 
                be compensated at a rate of $25,000 per year.
                    ``(B) Staff.--The chairperson of the Committee may 
                appoint and terminate any personnel that may be 
                necessary to enable the Committee to perform its 
                duties.
                    ``(C) Procurement of temporary and intermittent 
                services.--The chairperson of the Committee may procure 
                temporary and intermittent services under section 
                3109(b) of title 5, United States Code.
            ``(7) Administrative matters.--
                    ``(A) Powers of chair.--Except as otherwise 
                provided by a majority vote of the Committee, the 
                powers of the chairperson shall include--
                            ``(i) establishing subcommittees;
                            ``(ii) setting meeting places and times;
                            ``(iii) establishing meeting agendas; and
                            ``(iv) developing rules for the conduct of 
                        business.
                    ``(B) Meetings.--The Committee shall meet at least 
                quarterly and at such other times as the chairperson 
                determines appropriate.
                    ``(C) Quorum.--Three members of the Committee shall 
                constitute a quorum. A majority of members present and 
                voting shall be required for the Committee to take 
                action.
                    ``(D) Application of subsection (p) provisions.--
                The following provisions of subsection (p) apply to the 
                Committee to the same extent as they apply to the 
                Management Advisory Council:
                            ``(i) Paragraph (4)(C) (relating to access 
                        to documents and staff).
                            ``(ii) Paragraph (5) (relating to 
                        nonapplication of Federal Advisory Committee 
                        Act).
                            ``(iii) Paragraph (6)(G) (relating to 
                        travel and per diem).
                            ``(iv) Paragraph (6)(H) (relating to detail 
                        of personnel).
            ``(8) Reports.--
                    ``(A) Annual.--The Committee shall each year report 
                with respect to the conduct of its responsibilities 
                under this title to the Administrator, the Management 
                Advisory Council, the Committee on Transportation and 
                Infrastructure of the House of Representatives, and the 
                Committee on Commerce, Science, and Transportation of 
                the Senate.
                    ``(B) Comptroller general's report.--Not later than 
                April 30, 2003, the Comptroller General of the United 
                States shall transmit to the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives and the Committee on Commerce, Science, 
                and Transportation of the Senate a report on the 
                success of the Committee in improving the performance 
                of the air traffic control system.''.
    (b) Conforming Amendments.--
            (1) Subsection (p) of section 106 is amended--
                    (A) by striking ``18'' in paragraph (2) and 
                inserting ``13'';
                    (B) by inserting ``and'' after the semicolon in 
                subparagraph (C) of paragraph (2);
                    (C) by striking ``Transportation; and'' in 
                subparagraph (D) of paragraph (2) and inserting 
                ``Transportation.'';
                    (D) by striking subparagraph (E) of paragraph (2);
                    (E) by striking paragraph (3) and inserting the 
                following:
            ``(3) No federal officer or employee.--No member appointed 
        under paragraph (2)(C) may serve as an officer or employee of 
        the United States Government while serving as a member of the 
        Council.'';
                    (F) by striking subparagraphs (C), (D), (H), and 
                (I) of paragraph (6) and redesignating subparagraphs 
                (E), (F), (G), (J), (K), and (L) as subparagraphs (C), 
                (D), (E), (F), (G), and (H), respectively; and
                    (G) by striking paragraphs (7) and (8).
            (2) Section 106(s) (as redesignated by subsection (a) of 
        this section) is amended--
                    (A) by striking ``Air Traffic Services Subcommittee 
                of the Aviation Management Advisory Council.'' and 
                inserting ``Air Traffic Services Committee.'' in 
                paragraphs (1)(A) and (2)(A); and
                    (B) by striking ``Air Traffic Services Subcommittee 
                of the Aviation Management Advisory Council,'' and 
                inserting ``Air Traffic Services Committee,'' in 
                paragraph (3).
            (3) Section 106 is amended by adding at the end the 
        following:
    ``(t) Air Traffic Control System Defined.--In this section, the 
term `air traffic control system' has the meaning such term has under 
section 40102(a).''.
    (c) Transition from Air Traffic Service Subcommittee to Air Traffic 
Service Committee.--
            (1) Termination of management advisory council 
        membership.--Effective on the day after the date of enactment 
        of this Act, any member of the Management Advisory Council 
        appointed under section 106(p)(2)(E) of title 49, United States 
        Code, (as such section was in effect on the day before such 
        date of enactment) who is a member of the Council on such date 
        of enactment shall cease to be a member of the Council.
            (2) Commencement of membership on Air Traffic Services 
        Committee.--Effective on the day after the date of enactment of 
        this Act, any member of the Management Advisory Council whose 
        membership is terminated by paragraph (1) shall become a member 
        of the Air Traffic Services Committee as provided by section 
        106(q)(2)(G) of title 49, United States Code, to serve for the 
        remainder of the term to which that member was appointed to the 
        Council.

SEC. 107. CLARIFICATION OF RESPONSIBILITIES OF CHIEF OPERATING OFFICER.

    Section 106(s) (as redesignated by section 106(a)(1) of this Act) 
is amended--
            (1) by striking ``Transportation and Congress'' in 
        paragraph (4) 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,'';
            (2) by striking ``develop a strategic plan of the 
        Administration for the air traffic control system, including 
        the establishment of--'' in paragraph (5)(A) and inserting 
        ``implement the strategic plan of the Administration for the 
        air traffic control system in order to further--'';
            (3) by striking ``To review the operational functions of 
        the Administration,'' in paragraph (5)(B) and inserting ``To 
        oversee the day-to-day operational functions of the 
        Administration for air traffic control,'';
            (4) by striking ``system prepared by the Administrator;'' 
        in paragraph (5)(C)(i) and inserting ``system;'';
            (5) by striking ``Administrator and the Secretary of 
        Transportation;'' in paragraph (5)(C)(ii) and inserting 
        ``Administrator;''; and
            (6) by striking paragraph (5)(C)(iii) and inserting the 
        following:
                            ``(iii) ensure that the budget request 
                        supports the agency's annual and long-range 
                        strategic plans for air traffic control 
                        services.''.

                     TITLE II--AIRPORT DEVELOPMENT

SEC. 201. NATIONAL CAPACITY PROJECTS.

    (a) In General.--Part B of subtitle VII is amended by adding at the 
end the following:

               ``CHAPTER 477. NATIONAL CAPACITY PROJECTS

``47701. Capacity enhancement
``47702. Designation of national capacity projects
``47703. Expedited coordinated environmental review process; project 
                            coordinators and environment impact teams
``47704. Compatible land use initiative for national capacity projects
``47705. Air traffic procedures at national capacity projects
``47706. Pilot program for environmental review at national capacity 
                            projects
``47707. Definitions
``Sec. 47701. Capacity enhancement
    ``(a) In General.--Within 30 days after the date of enactment of 
the Aviation Investment and Revitalization Vision Act, the Secretary of 
Transportation shall identify those airports among the 31 airports 
covered by the Federal Aviation Administration's Airport Capacity 
Benchmark Report 2001 with delays that significantly affect the 
national air transportation system.
    ``(b) Task Force; Capacity Enhancement Study.--
            ``(1) In general.--The Secretary shall direct any airport 
        identified by the Secretary under subsection (a) that is not 
        engaged in a runway expansion process and has not initiated a 
        capacity enhancement study (or similar capacity assessment) 
        since 1996--
                    ``(A) to establish a delay reduction task force to 
                study means of increasing capacity at the airport, 
                including air traffic, airline scheduling, and airfield 
                expansion alternatives; or
                    ``(B) to conduct a capacity enhancement study.
            ``(2) Scope.--The scope of the study shall be determined by 
        the airport and the Federal Aviation Administration, and where 
        appropriate shall consider regional capacity solutions.
            ``(3) Recommendations submitted to secretary.--
                    ``(A) Task force.--A task force established under 
                this subsection shall submit a report containing its 
                findings and conclusions, together with any 
                recommendations for capacity enhancement at the 
                airport, to the Secretary within 9 months after the 
                task force is established.
                    ``(B) CES.--A capacity enhancement study conducted 
                under this subsection shall be submitted, together with 
                its findings and conclusions, to the Secretary as soon 
                as the study is completed.
    ``(c) Runway Expansion and Reconfiguration.--If the report or study 
submitted under subsection (b)(3) includes a recommendation for the 
construction or reconfiguration of runways at the airport, then the 
Secretary and the airport shall complete the planning and environmental 
review process within 5 years after report or study is submitted to the 
Secretary. The Secretary may extend the 5-year deadline under this 
subsection for up to 1 year if the Secretary determines that such an 
extension is necessary and in the public interest. The Secretary shall 
notify the Senate Committee on Commerce, Science, and Transportation, 
and to the House of Representatives Committee on Transportation and 
Infrastructure of any such extension.
    ``(d) Airports That Decline To Undertake Expansion Projects.--
            ``(1) In general.--If an airport at which the construction 
        or reconfiguration of runways is recommended does not take 
        action to initiate a planning and environmental assessment 
        process for the construction or reconfiguration of those 
        runways within 30 days after the date on which the report or 
        study is submitted to the Secretary, then--
                    ``(A) the airport shall be ineligible for planning 
                and other expansion funds under subchapter I of chapter 
                471, notwithstanding any provision of that subchapter 
                to the contrary;
                    ``(B) no passenger facility fee may be approved at 
                that airport during the 5-year period beginning 30 days 
                after the date on which the report or study is 
                submitted to the Secretary, for--
                            ``(i) projects that, but for subparagraph 
                        (A), could have been funded under chapter 471; 
                        or
                            ``(ii) any project other than on-airport 
                        airfield-side capacity or safety-related 
                        projects.
            ``(2) Safety-related and environmental projects excepted.--
        Paragraph (1) does not apply to the use of funds for safety-
        related, security, or environment projects.
    ``(e) Airports That Take Action.--The Secretary shall take all 
actions possible to expedite funding and provide options for funding to 
any airport undertaking runway construction or reconfiguration projects 
in response to recommendations by its task force.
``Sec. 47702. Designation of national capacity projects
    ``(a) In General.--In response to a petition from an airport 
sponsor, or in the case of an airport on the list of airports covered 
by the Federal Aviation Administration's Airport Capacity Benchmarks 
study, the Secretary of Transportation may designate an airport 
development project as a national capacity project if the Secretary 
determines that the project to be designated will significantly enhance 
the capacity of the national air transportation system.
    ``(b) Designation To Remain in Effect for 5 Years.--The designation 
of a project as a national capacity project under paragraph (1) shall 
remain in effect for 5 years. The Secretary may extend the 5-year 
period for up to 2 additional years upon request if the Secretary finds 
that substantial progress is being made toward completion of the 
project.
``Sec. 47703. Expedited coordinated environmental review process; 
              project coordinators and environment impact teams.
    ``(a) In General.--The Secretary of Transportation shall implement 
an expedited coordinated environmental review process for national 
capacity 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 for an expedited and coordinated process in 
        the conduct of environmental reviews that ensures that, where 
        appropriate, the reviews are done concurrently and not 
        consecutively; and
            ``(3) provides for a date certain for completing all 
        environmental reviews.
    ``(b) High Priority for Airport Environmental Reviews.--Each 
department and agency of the United States Government with jurisdiction 
over environmental reviews shall accord any such review involving a 
national capacity project the highest possible priority and conduct the 
review expeditiously. If the Secretary finds that any such department 
or agency is not complying with the requirements of this subsection, 
the Secretary shall notify the Senate Committee on Commerce, Science, 
and Transportation, and to the House of Representatives Committee on 
Transportation and Infrastructure immediately.
    ``(c) Project Coordinators; EIS Teams.--
            ``(1) Designation.--For each project designated by the 
        Secretary as a national capacity project under subsection (a) 
        for which an environmental impact statement or environmental 
        assessment must be filed, the Secretary shall--
                    ``(A) designate a project coordinator within the 
                Department of Transportation; and
                    ``(B) establish an environmental impact team within 
                the Department.
            ``(2) Function.--The project coordinator and the 
        environmental impact team shall--
                    ``(A) coordinate the activities of all Federal, 
                State, and local agencies involved in the project;
                    ``(B) to the extent possible, working with Federal, 
                State and local officials, reduce and eliminate 
                duplicative and overlapping Federal, State, and local 
                permit requirements;
                    ``(C) to the extent possible, eliminate duplicate 
                Federal, State, and local environmental review 
                procedures; and
                    ``(D) provide direction for compliance with all 
                applicable Federal, State, and local environmental 
                requirements for the project.
``Sec. 47704. Compatible land use initiative for national capacity 
              projects
    ``(a) In General.--The Secretary of Transportation may make grants 
under chapter 471 to States and units of local government for land use 
compatibility plans directly related to national capacity projects for 
the purposes of making the use of land areas around the airport 
compatible with aircraft operations if the land use plan or project 
meets the requirements of this section.
    ``(b) Conditions.--A land use plan or project meets the 
requirements of this section if it--
            ``(1) is sponsored by the public agency that has the 
        authority to plan and adopt land use control measures, 
        including zoning, in the planning area in and around the 
        airport and that agency provides written assurances to the 
        Secretary that it will work with the affected airport to 
        identify and adopt such measures;
            ``(2) does not duplicate, and is not inconsistent with, an 
        airport noise compatibility program prepared by an airport 
        owner or operator under chapter 475 or with other planning 
        carried out by the airport.
            ``(3) is subject to an agreement between the public agency 
        sponsor and the airport owner or operator that the development 
        of the land use compatibility plan will be done cooperatively;
            ``(4) is consistent with the airport operation and 
        planning, including the use of any noise exposure contours on 
        which the land use compatibility planning or project is based; 
        and
            ``(5) has been approved jointly by the airport owner or 
        operator and the public agency sponsor.
    ``(c) Assurances from Sponsors.-- The Secretary may require the 
airport sponsor, public agency, or other entity to which a grant may be 
awarded under this section to provide such additional assurances, 
progress reports, and other information as the Secretary determines to 
be necessary to carry out this section.
``Sec. 47705. Air traffic procedures at national capacity projects
    ``(a) In General.--The Secretary of Transportation may consider 
prescribing flight procedures to avoid or minimize potentially 
significant adverse noise impacts of the project during the 
environmental planning process for a national capacity project that 
involves the construction of new runways or the reconfiguration of 
existing runways. If the Secretary determines that noise mitigation 
flight procedures are consistent with safe and efficient use of the 
navigable airspace, then, at the request of the airport sponsor, the 
Administrator may, in a manner consistent with applicable Federal law, 
commit to prescribing such procedures in any record of decision 
approving the project.
    ``(b) Modification.--Notwithstanding any commitment by the 
Secretary under subsection (a), the Secretary may initiate changes to 
such procedures if necessary to maintain safety and efficiency in light 
of new information or changed circumstances.
``Sec. 47706. Pilot program for environmental review at national 
              capacity projects
    ``(a) In General.--The Secretary of Transportation shall initiate a 
5-year pilot program funded by airport sponsors--
            ``(1) to hire additional fulltime-equivalent environmental 
        specialists and attorneys, or
            ``(2) to obtain the services of such specialists and 
        attorneys from outside the United States Government, to assist 
        in the provision of an appropriate nationwide level of staffing 
        for planning and environmental review of runway development 
        projects for national capacity projects at the Federal Aviation 
        Administration.
    ``(b) Eligible Participants.--Participation in the pilot program 
shall be available, on a voluntary basis, to airports with an annual 
passenger enplanement of not less than 3 million passengers. The 
Secretary shall specify the minimum contribution necessary to qualify 
for participation in the pilot program, which shall be not less than 
the amount necessary to compensate the Department of Transportation for 
the expense of a fulltime equivalent environmental specialist and 
attorney qualified at the GS-14 equivalent level.
    ``(c) Retention of Revenues.--The salaries and expenses account of 
the Federal Aviation Administration shall retain as an offsetting 
collection such sums as may be necessary from such proceeds for the 
costs of developing and implementing the program required by subsection 
(a). Such offsetting collections shall be available for obligation 
subject to the terms and conditions of the receiving appropriations 
account, and shall be deposited in such accounts on a quarterly basis. 
Such offsetting collections are authorized to remain available until 
expended for such purpose.
``Sec. 47707. Definitions
    ``In this chapter:
            ``(1) National capacity project.--The term `national 
        capacity project' means a project designated by the Secretary 
        under section 44702.
            ``(2) Other terms.--The definitions in section 47102 apply 
        to any terms used in this chapter that are defined in that 
        section.''.
    (b) Additional Staff Authorized.--The Secretary of Transportation 
is authorized to hire additional environmental specialists and 
attorneys needed to process environmental impact statements in 
connection with airport construction projects and to serve as project 
coordinators and environmental impact team members under section 47703 
of title 49, United States Code.
    (c) Clerical Amendment.--The analysis for subtitle VII is amended 
by inserting after the item relating to section 475 the following:

                        ``477. National capacity projects......47701''.

SEC. 202. CATEGORICAL EXCLUSIONS.

    Not later than 30 days after the date of enactment of this Act, the 
Secretary of Transportation shall report to the Senate Committee on 
Commerce, Science, and Transportation on the categorical exclusions 
currently recognized and provide a list of proposed additional 
categorical exclusions from the requirement that an environmental 
assessment or an environmental impact statement be prepared under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for 
projects at airports. In determining the list of additional proposed 
categorical exclusions, the Secretary shall include such other projects 
as the Secretary determines should be categorically excluded in order 
to ensure that Department of Transportation environmental staff 
resources are not diverted to lower priority tasks and are available to 
expedite the environmental reviews of airport capacity enhancement 
projects at congested airports.

SEC. 203. ALTERNATIVES ANALYSIS.

    (a) Notice Requirement.--Not later than 30 days after the date on 
which the Secretary of Transportation identifies an airport capacity 
enhancement project at a congested airport under section 47171(c) of 
title 49, United States Code, the Secretary shall publish a notice in 
the Federal Register requesting comments on whether reasonable 
alternatives exist to the project.
    (b) Certain Reasonable Alternatives Defined.--For purposes of this 
section, an alternative shall be considered reasonable if--
            (1) the alternative does not create an unreasonable burden 
        on interstate commerce, the national aviation system, or the 
        navigable airspace;
            (2) the alternative is not inconsistent with maintaining 
        the safe and efficient use of the navigable airspace;
            (3) the alternative does not conflict with a law or 
        regulation of the United States;
            (4) the alternative would result in at least the same 
        reduction in congestion at the airport or in the national 
        aviation system as the proposed project; and
            (5) in any case in which the alternative is a proposed 
        construction project at an airport other than a congested 
        airport, firm commitments to provide such alternate airport 
        capacity exists, and the Secretary determines that such 
        alternate airport capacity will be available no later than 4 
        years after the date of the Secretary's determination under 
        this section.
    (c) Comment Period.--The Secretary shall provide a period of 60 
days for comments on a project identified by the Secretary under this 
section after the date of publication of notice with respect to the 
project.
    (d) Determination of Existence of Reasonable Alternatives.--Not 
later than 90 days after the last day of a comment period established 
under subsection (c) for a project, the Secretary shall determine 
whether reasonable alternatives exist to the project. The determination 
shall be binding on all persons, including Federal and State agencies, 
acting under or applying Federal laws when considering the availability 
of alternatives to the project.
    (e) Limitation on Applicability.--This section does not apply to--
            (1) any alternatives analysis required under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et. seq.); or
            (2) a project at an airport if the airport sponsor 
        requests, in writing, to the Secretary that this section not 
        apply to the project.

SEC. 204. INCREASE IN APPORTIONMENT FOR, AND FLEXIBILITY OF, NOISE 
              COMPATIBILITY PLANNING PROGRAMS.

    Section 47117(e)(1)(A) is amended--
            (1) by striking the first sentence and inserting: ``At 
        least 35 percent for grants for airport noise compatibility 
        planning under section 47505(a)(2) for a national capacity 
        project, for carrying out noise compatibility programs under 
        section 47504(c) of this title, and for noise mitigation 
        projects approved in an environmental record of decision for an 
        airport development project designated as a national capacity 
        project under section 47702.''; and
            (2) by striking ``or not such 34 percent requirement'' in 
        the second sentence and inserting ``the funding level required 
        by the preceding sentence''.

SEC. 205. SECRETARY OF TRANSPORTATION TO IDENTIFY AIRPORT CONGESTION-
              RELIEF PROJECTS AND FORECAST AIRPORT OPERATIONS ANNUALLY.

    (a) Identification of Projects.--
            (1) In general.--Within 90 days after the date of enactment 
        of this Act, the Secretary of Transportation shall provide--
                    (A) a list of planned air traffic and airport-
                capacity projects at congested Airport Capacity 
                Benchmark airports the completion of which will 
                substantially relieve congestion at those airports; and
                    (B) a list of options for expanding capacity at the 
                8 airports on the list at which the most severe delays 
                are occurring, to the Senate Committee on Commerce, 
                Science, and Transportation, and to the House of 
                Representatives Committee on Transportation and 
                Infrastructure. The Secretary shall provide updated 
                lists to those Committees 2 years after the date of 
                enactment of this Act.
            (2) Delisting of projects.--The Secretary shall remove a 
        project from the list provided to the Committees under 
        paragraph (1) upon the request, in writing, of an airport 
        operator if the operator states in the request that 
        construction of the project will not be completed within 10 
        years from the date of the request.

SEC. 206. DESIGN-BUILD CONTRACTING.

    (a) In General.--Subchapter I of chapter 471 is amended by adding 
at the end the following:
``Sec.  47138. Design-build contracting
    ``(a) In General.--The Administrator 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 three 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 471, 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 chapter analysis for chapter 471 is 
amended by inserting after the item relating to section 47137 the 
following:

        ``47138. Design-build contracting.''.

SEC. 207. 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.

SEC. 208. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

    (a) In General.--Section 47106(c)(1) is amended--
            (1) by inserting ``and'' after ``project;'' in subparagraph 
        (A)(ii);
            (2) by striking subparagraph (B); and
            (3) by redesignating subparagraph (C) as subparagraph (B).
    (b) Conforming Amendments.--Section 47106(c) of such title is 
amended--
            (1) by striking paragraph (4);
            (2) by redesignating paragraph (5) as paragraph (4); and
            (3) by striking ``(1)(C)'' in paragraph (4), as 
        redesignated, and inserting ``(1)(B)''.

SEC. 209. STREAMLINING THE PASSENGER FACILITY FEE PROGRAM.

    Section 40117 is amended--
            (1) by striking from ``finds--'' in paragraph (4) of 
        subsection (b) through the end of that paragraph and inserting 
        ``finds that the project cannot be paid for from funds 
        reasonably expected to be available for the programs referred 
        to in section 48103.'';
            (2) by adding at the end of subsection (c)(2) the 
        following:
                    ``(E) The agency will include in its application or 
                notice submitted under subsection (1) 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 consultation to an air 
                carrier and foreign air carrier is deemed to have 
                satisfied this requirement if it limits such notices 
                and consultations to air carriers and foreign air 
                carriers that have a significant business interest on 
                the airport. In developing regulations to implement 
                this provision, the Secretary shall consider a 
                significant business interest to be defined as an air 
                carrier or foreign air carrier that has no less than 
                1.0 percent of boardings at the airport in the prior 
                calendar year, except that no air carrier or foreign 
                air carrier may be considered excluded under this 
                section if it has at least 25,000 boardings at the 
                airport in the prior calendar year, or if it operates 
                scheduled service, without regard to such percentage 
                requirements.'';
            (3) by redesignating paragraph (3) of subsection (c) as 
        paragraph (4) and 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--
                    ``(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 who may be affected, including--
                            ``(i) publication in local newspapers of 
                        general circulation;
                            ``(ii) publication in other local media; 
                        and
                            ``(iii) posting the notice on the agency's 
                        website;
                    ``(B) a requirement for submission of public 
                comments no sooner than 30 days after publishing of the 
                notice and not later than 45 days after publication; 
                and
                    ``(C) a requirement that the agency include in its 
                application or notice submitted under paragraph (1) 
                copies of all comments received under subparagraph 
                (B).'';
            (4) by striking ``shall'' in the first sentence of 
        paragraph (4), as redesignated, of subsection (c) and inserting 
        ``may''; and
            (5) by adding at the end the following:
    ``(l) Pilot Program for Passenger Facility Fee Authorizations at 
Small Airports.--
            ``(1) There is established a pilot program for the 
        Secretary to test alternative procedures for authorizing small 
        airports to impose passenger facility fees. An eligible agency 
        may impose a passenger facility fee at a non-hub airport (as 
        defined in section 47102 of this title) that it controls for 
        use on eligible airport-related projects at that airport, in 
        accordance with the provisions of this subsection. These 
        procedures shall be in lieu of the procedures otherwise 
        specified in this section.
            ``(2) 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) The eligible agency must submit to the Secretary a 
        notice of intention to impose a passenger facility fee, which 
        notice shall include--
                    ``(A) information that the Secretary may require by 
                regulation on each project for which authority to 
                impose a passenger facility charge is sought;
                    ``(B) the amount of revenue from passenger facility 
                charges that is proposed to be collected for each 
                project; and
                    ``(C) the level of the passenger facility charge 
                that is proposed.
            ``(4) The Secretary shall acknowledge receipt of the notice 
        and indicate any objection to the imposition of a passenger 
        facility fee for any project identified in the notice within 30 
        days after receipt of the eligible agency's notice.
            ``(5) 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.
            ``(6) 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) The authority granted under this subsection shall 
        expire three years after the issuance of the regulation 
        required by paragraph (6).
            ``(8) An acknowledgement issued under paragraph (4) shall 
        not be considered an order of the Secretary issued under 
        section 46110 of this title.''.

SEC. 210. QUARTERLY STATUS REPORTS.

    Beginning with the second calendar quarter ending after the date of 
enactment of this Act, the Secretary of Transportation shall provide 
quarterly status reports to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on the status of construction of each 
major runway project undertaken at the largest 40 commercial airports 
in terms of annual enplanements.

SEC. 211. NOISE DISCLOSURE REQUIREMENTS.

    (a) Definitions.--Section 47501 is amended by adding at the end--
            ``(3) `Federal agency' means any department, agency, 
        corporation, or other establishment or instrumentality of the 
        executive branch of the Federal Government, and includes the 
        Federal National Mortgage Association and the Federal Home Loan 
        Mortgage Corporation.
            ``(4) `Federal entity for lending regulation' means the 
        Board of Governors of the Federal Reserve System, the Federal 
        Deposit Insurance Corporation, the Comptroller of the Currency, 
        the Office of Thrift Supervision, the National Credit Union 
        Administration, and the Farm Credit Administration, and with 
        respect to a particular regulated lending institution means the 
        entity primarily responsible for the supervision of the 
        institution.
            ``(5) `Federal agency lender' means a Federal agency that 
        makes direct loans secured by improved real estate or a mobile 
        home, to the extent such agency acts in such capacity.
            ``(6) `residential real estate' means real estate upon 
        which a residential dwelling is located.
            ``(7) `noise exposure map' means a noise exposure map that 
        complies with section 47503 of this title and part 150 of title 
        14, Code of Federal Regulations.
            ``(8) `regulated lending institution' means any bank, 
        savings and loan association, credit union, farm credit bank, 
        Federal land bank association, production credit association, 
        or similar institution subject to the supervision of a Federal 
        entity for lending regulation.''.
    (b) Noise Exposure Maps.--Section 47503(b) is amended to read as 
follows:
    ``(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, beyond the forecast year, the airport 
operator shall submit a revised noise exposure map to the Secretary 
showing the new noncompatible use or noise reduction.''.
    (c) Notification of Noise Exposure.--Chapter 457 is amended by 
adding at the end the following:
``Sec. 47511. Notification of noise exposure
    ``(a) Noise Exposure Map.--An airport operator shall make available 
to lending institutions, upon request, the most recent noise exposure 
map submitted under section 47503 of this title.
    ``(b) List of Airports.--The Secretary shall maintain a list of 
airports for which the airport operators have submitted a noise 
exposure map under section 47503 of this title.
    ``(c) Regulated Lending Institutions.--Each Federal entity for 
lending regulation (after consultation and coordination with the 
Federal Financial Institutions Examination Council) shall direct by 
regulation that a regulated lending institution may not make, increase, 
extend or renew any loan secured by residential real estate or a mobile 
home that is located or to be located in the vicinity of an airport on 
the Secretary's list described in subsection (b), unless the loan 
applicant's purchase agreement for the residential real estate or 
mobile home provides notice to the purchaser (or satisfactory 
assurances are provided that the seller has provided written notice to 
the purchaser prior to the purchaser's signing of the purchase 
agreement) that the property is within the area of the noise contours 
on a noise exposure map submitted under section 47503 of this chapter. 
The notice to the purchaser shall be acknowledged by the purchaser's 
signing of the purchase agreement or other notification document and 
the regulated lending institution shall retain a record of the receipt 
of the notice by the purchaser.
    ``(d) Federal Agency Lenders.--Each Federal agency lender shall by 
regulation require notification in the manner provided in subsection 
(c) with respect to any loan that is made by the Federal agency lender 
and secured by residential real estate or a mobile home located or to 
be located in the vicinity of an airport on the Secretary's list 
described in subsection (b).
    ``(e) Contents of Notice.--The notice required under this section 
shall disclose--
            ``(1) that the property is located within the noise 
        contours depicted on the most recent noise exposure map 
        submitted by the airport operator according to section 47503 of 
        this chapter, and is subject to aircraft noise exposure; and
            ``(2) the name and telephone number of the airport where 
        the purchaser may obtain more information on the aircraft noise 
        exposure.''.

SEC. 212. PROHIBITION ON REQUIRING AIRPORTS TO PROVIDE RENT-FREE SPACE 
              FOR FAA OR TSA.

    (a) In General.--Chapter 401 is amended by adding at the end the 
following:
``Sec.  40129. Prohibition on rent-free space requirements for FAA or 
              TSA
    ``(a) In General.--Neither the Secretary of Transportation nor the 
Secretary of Homeland Security may require airport sponsors to provide 
building construction, maintenance, utilities and expenses, or space in 
airport sponsor-owned buildings to the Federal Aviation Administration 
or the Transportation Security Administration without cost for services 
relating to air traffic control, air navigation, aviation security, or 
weather reporting.
    ``(b) Negotiated Agreements.--Subsection (a) does not prohibit--
            ``(1) the negotiation of agreements between either 
        Secretary and an airport sponsor to provide building 
        construction, maintenance, utilities and expenses, or space in 
        airport sponsor-owned buildings to the Federal Aviation 
        Administration or the Transportation Security Administration 
        without cost or at below-market rates; or
            ``(2) either Secretary from requiring airport sponsors to 
        provide land without cost to the Federal Aviation 
        Administration for air traffic control facilities or space 
        without cost to the Transportation Security Administration for 
        necessary security checkpoints.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 401 is 
amended by adding at the end the following:

        ``40129. Prohibition on rent-free space requirements for FAA or 
                            TSA.''.

SEC. 213. SPECIAL RULES FOR FISCAL YEAR 2004.

    (a) Apportionment to certain airports with declining boardings.--
            (1) In general.--For fiscal year 2004, the Secretary of 
        Transportation may apportion funds under section 47114 of title 
        49, United States Code, to the sponsor of an airport described 
        in paragraph (2) in an amount equal to the amount apportioned 
        to that airport under that section for fiscal year 2002, 
        notwithstanding any provision of section 47114 to the contrary.
            (2) Airports to which paragraph (1) applies.--Paragraph (1) 
        applies to any airport determined by the Secretary to have 
        had--
                    (A) less than one-half of 1 percent of the total 
                United States passenger boardings (as defined in 
                section 47102(10) of title 49, United States Code) for 
                the calendar year used for determining apportionments 
                under section 47114 for fiscal year 2004;
                    (B) less than 10,000 passenger boardings in 
                calendar year 2002; and
                    (C) 10,000 or more passenger boardings in calendar 
                year 2000.
    (b) Temporary Increase in Government Share of AIP Project Costs at 
Certain Airports.--Notwithstanding section 47109(a)(3) of title 49, 
United States Code, the Government's share of allowable project costs 
for a grant made in fiscal year 2004 under chapter 471 of that title to 
an airport described in that section shall be 95 percent.

                 TITLE III--AIRLINE SERVICE DEVELOPMENT

SEC. 301. DELAY REDUCTION MEETINGS.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end the following new section:
``Sec. 41723. Delay reduction actions
    ``(a) Delay Reduction Meetings.--
            ``(1) 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--
                    ``(A) the Administrator of the Federal Aviation 
                Administration determines that it is necessary to 
                convene such a meeting; and
                    ``(B) the Secretary determines that the meeting is 
                necessary to meet a serious transportation need or 
                achieve an important public benefit.
            ``(2) Meeting conditions.--Any meeting under paragraph 
        (1)--
                    ``(A) shall be chaired by the Administrator;
                    ``(B) shall be open to all scheduled air carriers; 
                and
                    ``(C) shall be limited to discussions involving the 
                airports and time periods described in the 
                Administrator's determination.
            ``(3) 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.
            ``(4) Delay reduction offers.--An air carrier attending the 
        meeting shall make any delay reduction offer to the 
        Administrator rather than to another carrier.
            ``(5) 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) Stormy Weather Agreements Limited Exemption.--
            ``(1) In general.--The Secretary may establish a program to 
        authorize by order discussions and agreements between 2 or more 
        air carriers for the purpose of reducing flight delays during 
        periods of inclement weather.
            ``(2) Requirements.--An authorization issued under 
        paragraph (1)--
                    ``(A) may only be issued by the Secretary after a 
                determination by the Federal Aviation Administration 
                that inclement weather is likely to adversely and 
                directly affect capacity at an airport for a period of 
                at least 3 hours;
                    ``(B) shall apply only to discussions and 
                agreements concerning flights directly affected by the 
                inclement weather; and
                    ``(C) shall remain in effect for a period of 24 
                hours.
            ``(3) Procedure.--The Secretary shall establish procedures 
        within 30 days after such date of enactment for--
                    ``(A) filing requests for an authorization under 
                paragraph (1);
                    ``(B) participation under paragraph (5) by 
                representatives of the Department of Transportation in 
                any meetings or discussions held pursuant to such an 
                order; and
                    ``(C) the determination by the Federal Aviation 
                Administration about the impact of inclement weather.
            ``(4) Copy of participation request filed with secretary.--
        Before an air carrier may request an order under paragraph (1), 
        it shall file a request with the Secretary, in such form and 
        manner as the Secretary may prescribe, to participate in the 
        program established under paragraph (1).
            ``(5) DOT Participation.--The Secretary shall ensure that 
        the Department is represented at any meetings authorized under 
        this subsection.
    ``(c) Exemption Authorized.--When the Secretary finds that it is 
required by the public interest, the Secretary, as part of an order 
issued under subsection (b)(1), shall exempt a person affected by the 
order from the antitrust laws to the extent necessary to allow the 
person to proceed with the activities approved in the order.
    ``(d) 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).
    ``(e) Sunset.--The authority of the Secretary to issue an order 
under subsection (b)(1) of this section expires at the end of the 2-
year period that begins 45 days after the date of enactment of the 
Aviation Investment and Revitalization Vision Act. The Secretary may 
extend the 2-year Period for an additional 2 years if the Secretary 
determines that such an extension is necessary and in the public 
interest. The Secretary shall notify the Senate Committee on Commerce, 
Science, and Transportation, and to the House of Representatives 
Committee on Transportation and Infrastructure of any such 
extension.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417 is 
amended by inserting after the item relating to section 41722 the 
following new item:

``41723. Delay reduction actions.''.

SEC. 302. REAUTHORIZATION OF ESSENTIAL AIR SERVICE PROGRAM.

    There are authorized to be appropriated to the Secretary of 
Transportation to carry out the essential air service program under 
subchapter II of chapter 417 of title 49, United States Code, 
$113,000,000 for each of the fiscal years 2004, 2005, and 2006.

SEC. 303. SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PROGRAM.

    (a) 3-year Extension.--Section 41743(e)(2) of title 49, United 
States Code, is amended--
            (1) by striking ``There is'' and inserting ``There are'';
            (2) by striking ``2001 and'' and inserting ``2001,''; and
            (3) by striking ``2003'' and inserting ``2003, and 
        $27,500,000 for the 3 fiscal year period beginning with fiscal 
        year 2004.''.
    (b) Additional Communities.--Section 41743(c)(4) of such title is 
amended by striking ``program.'' and inserting ``program each year. No 
community, consortia of communities, or combination thereof may 
participate in the program twice.''.

SEC. 304. DOT STUDY OF COMPETITION AND ACCESS PROBLEMS AT LARGE AND 
              MEDIUM HUB AIRPORTS.

    (a) In General.--The Secretary of Transportation shall study 
competition and airline access problems at hub airports (as defined in 
section 41731(a)(3)) of title 49, United States Code, and medium hub 
airports (as defined in section 41714(h)(9) of that title). In the 
study, the Secretary shall examine, among other matters--
            (1) gate usage and availability; and
            (2) the effects of the pricing of gates and other 
        facilities on competition and access.
    (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 competition and airline access at such airports 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.

SEC. 305. COMPETITION DISCLOSURE REQUIREMENT FOR LARGE AND MEDIUM HUB 
              AIRPORTS.

    Section 47107 is amended by adding at the end the following:
    ``(q) 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 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.--If an airport denies an 
        application by an air carrier to receive access to gates or 
        other facilities at that airport in order to provide service to 
        the airport or to expand service at the airport, then, within 
        30 days after denying the request, the airport sponsor shall--
                    ``(A) notify the Secretary of the denial; and
                    ``(B) transmit a report to the Secretary that--
                            ``(i) describes the request;
                            ``(ii) explains the reasons for the denial; 
                        and
                            ``(iii) provides a time frame within which, 
                        if any, the airport will be able to accommodate 
                        the request.
            ``(3) Definitions.--In this subsection:
                    ``(A) Hub airport.--The term `hub airport' has the 
                meaning given that term by section 41731(a)(3).
                    ``(B) Medium hub airport.--The term `medium hub 
                airport' has the meaning given that term by section 
                41714(h)(9).''.

                      TITLE IV--AVIATION SECURITY

SEC. 401. STUDY OF EFFECTIVENESS OF TRANSPORTATION SECURITY SYSTEM.

    (a) In General.--The Secretary of Homeland Security 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.

SEC. 402. AVIATION SECURITY CAPITAL FUND.

    (a) In General.--There is established within the Department of 
Transportation a fund to be known as the Aviation Security Capital 
Fund. There are appropriated to the Fund $500,000,000 for each of the 
fiscal years 2004 through 2007, such amounts to be derived from fees 
received under section 44940 of title 49, United States Code. Amounts 
in the fund shall be allocated in such a manner that--
            (1) 40 percent shall be made available for hub airports;
            (2) 20 percent shall be made available for medium hub 
        airports;
            (3) 15 percent shall be made available for small hub 
        airports and non-hub airports; and
            (4) 25 percent may be distributed at the Secretary's 
        discretion.
    (b) Purpose.--Amounts in the Fund shall be available to the 
Secretary of Transportation, after consultation with the Under 
Secretary of Homeland Security for Border and Transportation Security 
to provide financial assistance to airport sponsors to defray capital 
investment in transportation security at airport facilities in 
accordance with the provisions of this section. The program shall be 
administered in concert with the airport improvement program under 
chapter 417 of title 49, United States Code.
    (c) Apportionment.--Amounts made available under subsection (a)(1), 
(a)(2), or (a)(3) shall be apportioned among the airports in each 
category in accordance with a formula based on the ratio that passenger 
emplanements at each airport in the category bears to the total 
passenger emplanements at all airports in that category.
    (d) Matching Requirements.--
            (1) In general.--Not less than the following percentage of 
        the costs of any project funded under this section shall be 
        derived from non-Federal sources:
                    (A) For hub airports and medium hub airports, 25 
                percent.
                    (B) For airports other than hub airports and medium 
                hub airports, 10 percent.
            (2) Use of bond proceeds.--In determining the amount of 
        non-Federal sources of funds, the proceeds of State and local 
        bond issues shall not be considered to be derived, directly or 
        indirectly, from Federal sources without regard to the Federal 
        income tax treatment of interest and principal of such bonds.
    (e) Letters of Intent.--The Secretary of Transportation, or his 
delegate, may execute letters of intent to commit funding to airport 
sponsors from the Fund.
    (f) Conforming Amendment.--Section 44940(a)(1) of title 49, United 
States Code, is amended by adding at the end the following:
                    ``(H) The costs of security-related capital 
                improvements at airports.''.
    (g) Definitions.--Any term used in this section that is defined or 
used in chapter 417 of title 49 United States Code has the meaning 
given that term in that chapter.

SEC. 403. TECHNICAL AMENDMENTS RELATED TO SECURITY-RELATED AIRPORT 
              DEVELOPMENT.

    (a) Definition of Airport Development.--Section 47102(3)(B) is 
amended--
            (1) by inserting ``and'' after the semicolon in clause 
        (viii);
            (2) by striking ``circular; and'' in clause (ix) and 
        inserting ``circular.''; and
            (3) by striking clause (x).
    (b) Improvement of Facilities and Equipment.--Section 301(a) of the 
Federal Aviation Reauthorization Act of 1996 (49 U.S.C. 44901 note) is 
amended by striking ``travel.'' and inserting ``travel if the 
improvements or equipment will be owned and operated by the airport.''.

                         TITLE V--MISCELLANEOUS

SEC. 501. EXTENSION OF WAR RISK INSURANCE AUTHORITY.

    (a) Extension of Policies.--Section 44302(f)(1) is amended by 
striking ``2003,'' each place it appears and inserting ``2006,''.
    (b) Extension of Liability Limitation.--Section 44303(b) is amended 
by striking ``2003,'' and inserting ``2006,''.
    (c) Extension of Authority.--Section 44310 is amended by striking 
``2003.'' and inserting ``2006.''.

SEC. 502. 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 facilities and 
equipment.
    ``(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 of this title.
    ``(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) of this title to carry out this program.
    ``(e) Definitions.--In this section:
            ``(1) Eligible project.--The term `eligible project' means 
        a project relating to the Nation's air traffic control system 
        that is certified or approved by the Administrator 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, lighting improvements, and control 
                towers;
                    ``(B) automation tools to effect improvements in 
                airport capacity, including passive final approach 
                spacing tools and traffic management advisory 
                equipment; and
                    ``(C) facilities and equipment that enhance 
                airspace control procedures, including consolidation of 
                terminal radar control facilities and equipment, 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 of the Federal Aviation 
Administration, project sponsors 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, which shall not be 
subject to administrative rulemaking requirements under subchapter II 
of chapter 5 of title 5.''.
    (b) Conforming Amendment.--The chapter analyses for chapter 445 is 
amended by adding at the end the following:

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

SEC. 503. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS.

    Section 44726(a)(1) is amended --
            (1) by striking ``or'' after the semicolon in subparagraph 
        (A);
            (2) by redesignating subparagraph (B) as subparagraph (D);
            (3) by inserting after subparagraph (A) the following:
                    ``(B) who knowingly, and with intent to defraud, 
                carried out or facilitated an activity punishable under 
                a law described in subparagraph (A);
                    ``(C) whose certificate is revoked under subsection 
                (b) of this section; or''; and
            (4) by striking ``convicted of such a violation.'' in 
        subparagraph (D), as redesignated, and inserting ``described in 
        subparagraph (A), (B) or (C).''.

SEC. 504. CLARIFICATIONS TO PROCUREMENT AUTHORITY.

    (a) Update and Clarification of Authority.--
            (1) Section 40110(c) is amended to read as follows:
    ``(c) Duties and Powers.--When carrying out subsection (a) of this 
section, the Administrator of the Federal Aviation Administration may--
            ``(1) notwithstanding section 1341(a)(1) of title 31, lease 
        an interest in property for not more than 20 years;
            ``(2) consider the reasonable probable future use of the 
        underlying land in making an award for a condemnation of an 
        interest in airspace; and
            ``(3) dispose of property under subsection (a)(2) of this 
        section, except for airport and airway property and technical 
        equipment used for the special purposes of the Administration, 
        only under sections 121, 123, and 126 and chapter 5 of title 
        40.''.
            (2) Section 40110(d)(1) is amended by striking ``implement, 
        not later than January 1, 1996,'' and inserting ``implement''.
    (b) Clarification.--Section 106(f)(2)(A)(ii) is amended by striking 
``property'' and inserting ``property, services,''.
                                 <all>