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

                                                        Calendar No. 83
108th CONGRESS
  1st Session
                                 S. 824

                          [Report No. 108-41]

   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

                              May 2, 2003

Reported under authority of the order of the Senate of May 1, 2003, by 
                     Mr. McCain, with an amendment
  [Strike all after the enacting clause and insert the part in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Aviation 
Investment and Revitalization Vision Act''.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED>    The table of contents for this Act is as 
follows:</DELETED>

        <DELETED>Sec. 1. Short title; amendment of title 49.
        <DELETED>Sec. 2. Table of contents.
           <DELETED>TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT

        <DELETED>Sec. 101. Airport improvement program.
        <DELETED>Sec. 102. Airway facilities improvement program.
        <DELETED>Sec. 103. FAA operations.
        <DELETED>Sec. 104. Research, engineering, and development.
        <DELETED>Sec. 105. Other programs.
        <DELETED>Sec. 106. Reorganization of the Air Traffic Services 
                            Subcommittee.
        <DELETED>Sec. 107. Clarification of responsibilities of chief 
                            operating officer.
                 <DELETED>TITLE II--AIRPORT DEVELOPMENT

        <DELETED>Sec. 201. National capacity projects.
        <DELETED>Sec. 202. Categorical exclusions.
        <DELETED>Sec. 203. Alternatives analysis.
        <DELETED>Sec. 204. Increase in apportionment for, and 
                            flexibility of, noise compatibility 
                            planning programs.
        <DELETED>Sec. 205. Secretary of Transportation to identify 
                            airport congestion-relief projects and 
                            forecast airport operations annually.
        <DELETED>Sec. 206. Design-build contracting.
        <DELETED>Sec. 207. Special rule for airport in Illinois.
        <DELETED>Sec. 208. Elimination of duplicative requirements.
        <DELETED>Sec. 209. Streamlining the passenger facility fee 
                            program.
        <DELETED>Sec. 210. Quarterly status reports.
        <DELETED>Sec. 211. Noise disclosure requirements.
        <DELETED>Sec. 212. Prohibition on requiring airports to provide 
                            rent-free space for FAA or TSA.
        <DELETED>Sec. 213. Special rules for fiscal year 2004.
            <DELETED>TITLE III--AIRLINE SERVICE DEVELOPMENT

        <DELETED>Sec. 301. Delay reduction meetings.
        <DELETED>Sec. 302. Reauthorization of essential air service 
                            program.
        <DELETED>Sec. 303. Small community air service development 
                            pilot program.
        <DELETED>Sec. 304. DOT study of competition and access problems 
                            at large and medium hub airports.
        <DELETED>Sec. 305. Competition disclosure requirement for large 
                            and medium hub airports.
                              <DELETED>Title IV--Aviation Security
        <DELETED>Sec. 401. Study of effectiveness of transportation 
                            security system.
        <DELETED>Sec. 402. Aviation security capital fund.
        <DELETED>Sec. 403. Technical amendments related to security-
                            related airport development.
                              <DELETED>Title V--Miscellaneous
        <DELETED>Sec. 501. Extension of war risk insurance authority.
        <DELETED>Sec. 502. Cost-sharing of air traffic modernization 
                            projects.
        <DELETED>Sec. 503. Counterfeit or fraudulently represented 
                            parts violations.
        <DELETED>Sec. 504. Clarifications to procurement authority.

      <DELETED>TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT</DELETED>

<DELETED>SEC. 101. AIRPORT IMPROVEMENT PROGRAM.</DELETED>

<DELETED>    (a) Authorization of Appropriations.--Section 48103 is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``(a) In General.--'' before 
        ``The'';</DELETED>
        <DELETED>    (2) by striking ``and'' in paragraph 
        (4);</DELETED>
        <DELETED>    (3) by striking ``2003.'' in paragraph (5) and 
        inserting ``2003;'';</DELETED>
        <DELETED>    (4) by inserting after paragraph (5) the 
        following:</DELETED>
        <DELETED>    ``(6) $3,400,000,000 for fiscal year 
        2004;</DELETED>
        <DELETED>    ``(7) $3,500,000,000 for fiscal year 2005; 
        and</DELETED>
        <DELETED>    ``(8) $3,600,000,000 for fiscal year 2006.''; 
        and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) for fiscal year 2004, $69,737,000;</DELETED>
        <DELETED>    ``(2) for fiscal year 2005, $71,816,000; 
        and</DELETED>
        <DELETED>    ``(3) for fiscal year 2006, 
        $74,048,000.''.</DELETED>
<DELETED>    (b) Obligational Authority.--Section 47104(c) is amended 
by striking ``2003,'' and inserting ``2006,''.</DELETED>

<DELETED>SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.</DELETED>

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

<DELETED>SEC. 103. FAA OPERATIONS.</DELETED>

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

<DELETED>SEC. 104. RESEARCH, ENGINEERING AND DEVELOPMENT.</DELETED>

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

<DELETED>SEC. 105. OTHER PROGRAMS.</DELETED>

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

<DELETED>SEC. 106. REORGANIZATION OF THE AIR TRAFFIC SERVICES 
              SUBCOMMITTEE.</DELETED>

<DELETED>    (a) In General.--Section 106 is amended--</DELETED>
        <DELETED>    (1) by redesignating subsections (q) and (r) as 
        subsections (r) and (s), respectively; and</DELETED>
        <DELETED>    (2) by inserting after subsection (p) the 
        following:</DELETED>
<DELETED>    ``(q) Air Traffic Management Committee.--</DELETED>
        <DELETED>    ``(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').</DELETED>
        <DELETED>    ``(2) Membership.--</DELETED>
                <DELETED>    ``(A) Composition and appointment.--The 
                Committee shall be composed of--</DELETED>
                        <DELETED>    ``(i) the Administrator of the 
                        Federal Aviation Administration, who shall 
                        serve as chair; and</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(C) Eligibility.--Members appointed 
                under subparagraph (A)(ii) shall--</DELETED>
                        <DELETED>    ``(i) have a fiduciary 
                        responsibility to represent the public 
                        interest;</DELETED>
                        <DELETED>    ``(ii) be citizens of the United 
                        States; and</DELETED>
                        <DELETED>    ``(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:</DELETED>
                                <DELETED>    ``(I) Management of large 
                                service organizations.</DELETED>
                                <DELETED>    ``(II) Customer 
                                service.</DELETED>
                                <DELETED>    ``(III) Management of 
                                large procurements.</DELETED>
                                <DELETED>    ``(IV) Information and 
                                communications technology.</DELETED>
                                <DELETED>    ``(V) Organizational 
                                development.</DELETED>
                                <DELETED>    ``(VI) Labor 
                                relations.</DELETED>
                        <DELETED>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).</DELETED>
                <DELETED>    ``(D) Prohibitions on members of 
                committee.--No member appointed under subparagraph 
                (A)(ii) may--</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(ii) engage in another business 
                        related to aviation or aeronautics; 
                        or</DELETED>
                        <DELETED>    ``(iii) be a member of any 
                        organization that engages, as a substantial 
                        part of its activities, in activities to 
                        influence aviation-related 
                        legislation.</DELETED>
                <DELETED>    ``(E) Claims against members.--</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(ii) Effect on other law.--This 
                        subparagraph shall not be construed--</DELETED>
                                <DELETED>    ``(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;</DELETED>
                                <DELETED>    ``(II) to affect any other 
                                right or remedy against the United 
                                States under applicable law; 
                                or</DELETED>
                                <DELETED>    ``(III) to limit or alter 
                                in any way the immunities that are 
                                available under applicable law for 
                                Federal officers and 
                                employees.</DELETED>
                <DELETED>    ``(F) Ethical considerations.--</DELETED>
                        <DELETED>    ``(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.</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(G) Terms for air traffic services 
                committee members.--A member appointed under 
                subparagraph (A)(ii) shall be appointed for a term of 5 
                years.</DELETED>
                <DELETED>    ``(H) Reappointment.--An individual may 
                not be appointed under subparagraph (A)(ii) to more 
                than two 5-year terms.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(J) Continuation in office.--A member 
                whose term expires shall continue to serve until the 
                date on which the member's successor takes 
                office.</DELETED>
                <DELETED>    ``(K) Removal.--Any member appointed under 
                subparagraph (A)(ii) may be removed for cause by the 
                Secretary.</DELETED>
        <DELETED>    ``(3) General responsibilities.--</DELETED>
                <DELETED>    ``(A) Oversight.--The Committee shall 
                oversee the administration, management, conduct, 
                direction, and supervision of the air traffic control 
                system.</DELETED>
                <DELETED>    ``(B) Confidentiality.--The Committee 
                shall ensure that appropriate confidentiality is 
                maintained in the exercise of its duties.</DELETED>
        <DELETED>    ``(4) Specific responsibilities.--The Committee 
        shall have the following specific responsibilities:</DELETED>
                <DELETED>    ``(A) Strategic plans.--To review, 
                approve, and monitor the strategic plan for the air 
                traffic control system, including the establishment 
                of--</DELETED>
                        <DELETED>    ``(i) a mission and 
                        objectives;</DELETED>
                        <DELETED>    ``(ii) standards of performance 
                        relative to such mission and objectives, 
                        including safety, efficiency, and productivity; 
                        and</DELETED>
                        <DELETED>    ``(iii) annual and long-range 
                        strategic plans.</DELETED>
                <DELETED>    ``(B) Modernization and improvement.--To 
                review and approve--</DELETED>
                        <DELETED>    ``(i) methods to accelerate air 
                        traffic control modernization and improvements 
                        in aviation safety related to air traffic 
                        control; and</DELETED>
                        <DELETED>    ``(ii) procurements of air traffic 
                        control equipment in excess of 
                        $100,000,000.</DELETED>
                <DELETED>    ``(C) Operational plans.--To review the 
                operational functions of the air traffic control 
                system, including--</DELETED>
                        <DELETED>    ``(i) plans for modernization of 
                        the air traffic control system;</DELETED>
                        <DELETED>    ``(ii) plans for increasing 
                        productivity or implementing cost-saving 
                        measures; and</DELETED>
                        <DELETED>    ``(iii) plans for training and 
                        education.</DELETED>
                <DELETED>    ``(D) Management.--To--</DELETED>
                        <DELETED>    ``(i) review and approve the 
                        Administrator's appointment of a Chief 
                        Operating Officer under section 
                        106(s);</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(E) Budget.--To--</DELETED>
                        <DELETED>    ``(i) review and approve the 
                        budget request of the Administration related to 
                        the air traffic control system prepared by the 
                        Administrator;</DELETED>
                        <DELETED>    ``(ii) submit such budget request 
                        to the Secretary; and</DELETED>
                        <DELETED>    ``(iii) ensure that the budget 
                        request supports the annual and long-range 
                        strategic plans.</DELETED>
        <DELETED>``(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.</DELETED>
        <DELETED>    ``(6) Committee personnel matters.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(7) Administrative matters.--</DELETED>
                <DELETED>    ``(A) Powers of chair.--Except as 
                otherwise provided by a majority vote of the Committee, 
                the powers of the chairperson shall include--</DELETED>
                        <DELETED>    ``(i) establishing 
                        subcommittees;</DELETED>
                        <DELETED>    ``(ii) setting meeting places and 
                        times;</DELETED>
                        <DELETED>    ``(iii) establishing meeting 
                        agendas; and</DELETED>
                        <DELETED>    ``(iv) developing rules for the 
                        conduct of business.</DELETED>
                <DELETED>    ``(B) Meetings.--The Committee shall meet 
                at least quarterly and at such other times as the 
                chairperson determines appropriate.</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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:</DELETED>
                        <DELETED>    ``(i) Paragraph (4)(C) (relating 
                        to access to documents and staff).</DELETED>
                        <DELETED>    ``(ii) Paragraph (5) (relating to 
                        nonapplication of Federal Advisory Committee 
                        Act).</DELETED>
                        <DELETED>    ``(iii) Paragraph (6)(G) (relating 
                        to travel and per diem).</DELETED>
                        <DELETED>    ``(iv) Paragraph (6)(H) (relating 
                        to detail of personnel).</DELETED>
        <DELETED>    ``(8) Reports.--</DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Subsection (p) of section 106 is amended--
        </DELETED>
                <DELETED>    (A) by striking ``18'' in paragraph (2) 
                and inserting ``13'';</DELETED>
                <DELETED>    (B) by inserting ``and'' after the 
                semicolon in subparagraph (C) of paragraph 
                (2);</DELETED>
                <DELETED>    (C) by striking ``Transportation; and'' in 
                subparagraph (D) of paragraph (2) and inserting 
                ``Transportation.'';</DELETED>
                <DELETED>    (D) by striking subparagraph (E) of 
                paragraph (2);</DELETED>
                <DELETED>    (E) by striking paragraph (3) and 
                inserting the following:</DELETED>
        <DELETED>    ``(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.'';</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (G) by striking paragraphs (7) and 
                (8).</DELETED>
        <DELETED>    (2) Section 106(s) (as redesignated by subsection 
        (a) of this section) is amended--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) by striking ``Air Traffic Services 
                Subcommittee of the Aviation Management Advisory 
                Council,'' and inserting ``Air Traffic Services 
                Committee,'' in paragraph (3).</DELETED>
        <DELETED>    (3) Section 106 is amended by adding at the end 
        the following:</DELETED>
<DELETED>    ``(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).''.</DELETED>
<DELETED>    (c) Transition from Air Traffic Service Subcommittee to 
Air Traffic Service Committee.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 107. CLARIFICATION OF RESPONSIBILITIES OF CHIEF OPERATING 
              OFFICER.</DELETED>

<DELETED>    Section 106(s) (as redesignated by section 106(a)(1) of 
this Act) is amended--</DELETED>
        <DELETED>    (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,'';</DELETED>
        <DELETED>    (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--'';</DELETED>
        <DELETED>    (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,'';</DELETED>
        <DELETED>    (4) by striking ``system prepared by the 
        Administrator;'' in paragraph (5)(C)(i) and inserting 
        ``system;'';</DELETED>
        <DELETED>    (5) by striking ``Administrator and the Secretary 
        of Transportation;'' in paragraph (5)(C)(ii) and inserting 
        ``Administrator;''; and</DELETED>
        <DELETED>    (6) by striking paragraph (5)(C)(iii) and 
        inserting the following:</DELETED>
                        <DELETED>    ``(iii) ensure that the budget 
                        request supports the agency's annual and long-
                        range strategic plans for air traffic control 
                        services.''.</DELETED>

            <DELETED>TITLE II--AIRPORT DEVELOPMENT</DELETED>

<DELETED>SEC. 201. NATIONAL CAPACITY PROJECTS.</DELETED>

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

           <DELETED>``CHAPTER 477. NATIONAL CAPACITY PROJECTS

<DELETED>``47701. Capacity enhancement
<DELETED>``47702. Designation of national capacity projects
<DELETED>``47703. Expedited coordinated environmental review process; 
                            project coordinators and environment impact 
                            teams.
<DELETED>``47704. Compatible land use initiative for national capacity 
                            projects
<DELETED>``47705. Air traffic procedures at national capacity projects
<DELETED>``47706. Pilot program for environmental review at national 
                            capacity projects
<DELETED>``47707. Definitions
<DELETED>``Sec. 47701. Capacity enhancement</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Task Force; Capacity Enhancement Study.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) to conduct a capacity enhancement 
                study.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Recommendations submitted to secretary.--
        </DELETED>
                <DELETED>    ``(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.</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Airports That Decline To Undertake Expansion 
Projects.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) projects that, but for 
                        subparagraph (A), could have been funded under 
                        chapter 471; or</DELETED>
                        <DELETED>    ``(ii) any project other than on-
                        airport airfield-side capacity or safety-
                        related projects.</DELETED>
        <DELETED>    ``(2) Safety-related and environmental projects 
        excepted.--Paragraph (1) does not apply to the use of funds for 
        safety-related, security, or environment projects.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 47702. Designation of national capacity 
              projects</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 47703. Expedited coordinated environmental review 
              process; project coordinators and environment impact 
              teams.</DELETED>
<DELETED>    ``(a) In General.--The Secretary of Transportation shall 
implement an expedited coordinated environmental review process for 
national capacity projects that--</DELETED>
        <DELETED>    ``(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.);</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(3) provides for a date certain for completing 
        all environmental reviews.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Project Coordinators; EIS Teams.--</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(A) designate a project coordinator 
                within the Department of Transportation; and</DELETED>
                <DELETED>    ``(B) establish an environmental impact 
                team within the Department.</DELETED>
        <DELETED>    ``(2) Function.--The project coordinator and the 
        environmental impact team shall--</DELETED>
                <DELETED>    ``(A) coordinate the activities of all 
                Federal, State, and local agencies involved in the 
                project;</DELETED>
                <DELETED>    ``(B) to the extent possible, working with 
                Federal, State and local officials, reduce and 
                eliminate duplicative and overlapping Federal, State, 
                and local permit requirements;</DELETED>
                <DELETED>    ``(C) to the extent possible, eliminate 
                duplicate Federal, State, and local environmental 
                review procedures; and</DELETED>
                <DELETED>    ``(D) provide direction for compliance 
                with all applicable Federal, State, and local 
                environmental requirements for the project.</DELETED>
<DELETED>``Sec. 47704. Compatible land use initiative for national 
              capacity projects</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Conditions.--A land use plan or project meets the 
requirements of this section if it--</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(5) has been approved jointly by the airport 
        owner or operator and the public agency sponsor.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 47705. Air traffic procedures at national capacity 
              projects</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 47706. Pilot program for environmental review at 
              national capacity projects</DELETED>
<DELETED>    ``(a) In General.--The Secretary of Transportation shall 
initiate a 5-year pilot program funded by airport sponsors--</DELETED>
        <DELETED>    ``(1) to hire additional fulltime-equivalent 
        environmental specialists and attorneys, or</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 47707. Definitions</DELETED>
<DELETED>    ``In this chapter:</DELETED>
        <DELETED>    ``(1) National capacity project.--The term 
        `national capacity project' means a project designated by the 
        Secretary under section 44702.</DELETED>
        <DELETED>    ``(2) Other terms.--The definitions in section 
        47102 apply to any terms used in this chapter that are defined 
        in that section.''.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (c) Clerical Amendment.--The analysis for subtitle VII is 
amended by inserting after the item relating to section 475 the 
following:</DELETED>

                        <DELETED>``477. National capacity      47701''.
                            projects.

<DELETED>SEC. 202. CATEGORICAL EXCLUSIONS.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 203. ALTERNATIVES ANALYSIS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Certain Reasonable Alternatives Defined.--For purposes 
of this section, an alternative shall be considered reasonable if--
</DELETED>
        <DELETED>    (1) the alternative does not create an 
        unreasonable burden on interstate commerce, the national 
        aviation system, or the navigable airspace;</DELETED>
        <DELETED>    (2) the alternative is not inconsistent with 
        maintaining the safe and efficient use of the navigable 
        airspace;</DELETED>
        <DELETED>    (3) the alternative does not conflict with a law 
        or regulation of the United States;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (e) Limitation on Applicability.--This section does not 
apply to--</DELETED>
        <DELETED>    (1) any alternatives analysis required under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et. 
        seq.); or</DELETED>
        <DELETED>    (2) a project at an airport if the airport sponsor 
        requests, in writing, to the Secretary that this section not 
        apply to the project.</DELETED>

<DELETED>SEC. 204. INCREASE IN APPORTIONMENT FOR, AND FLEXIBILITY OF, 
              NOISE COMPATIBILITY PLANNING PROGRAMS.</DELETED>

<DELETED>    Section 47117(e)(1)(A) is amended--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) by striking ``or not such 34 percent 
        requirement'' in the second sentence and inserting ``the 
        funding level required by the preceding sentence''.</DELETED>

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

<DELETED>    (a) Identification of Projects.--</DELETED>
        <DELETED>    (1) In general.--Within 90 days after the date of 
        enactment of this Act, the Secretary of Transportation shall 
        provide--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 206. DESIGN-BUILD CONTRACTING.</DELETED>

<DELETED>    (a) In General.--Subchapter I of chapter 471 is amended by 
adding at the end the following:</DELETED>
<DELETED>``Sec.  47138. Design-build contracting</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) the Administrator approves the application 
        using criteria established by the Administrator;</DELETED>
        <DELETED>    ``(2) the design-build contract is in a form that 
        is approved by the Administrator;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(4) use of a design-build contract will be cost 
        effective and expedite the project;</DELETED>
        <DELETED>    ``(5) the Administrator is satisfied that there 
        will be no conflict of interest; and</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The chapter analysis for 
chapter 471 is amended by inserting after the item relating to section 
47137 the following:</DELETED>

        <DELETED>``47138. Design-build contracting.''.

<DELETED>SEC. 207. SPECIAL RULE FOR AIRPORT IN ILLINOIS.</DELETED>

<DELETED>  (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.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 208. ELIMINATION OF DUPLICATIVE REQUIREMENTS.</DELETED>

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

<DELETED>SEC. 209. STREAMLINING THE PASSENGER FACILITY FEE 
              PROGRAM.</DELETED>

<DELETED>    Section 40117 is amended--</DELETED>
        <DELETED>    (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.'';</DELETED>
        <DELETED>    (2) by adding at the end of subsection (c)(2) the 
        following:</DELETED>
                <DELETED>    ``(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).</DELETED>
                <DELETED>    ``(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.'';</DELETED>
        <DELETED>    (3) by redesignating paragraph (3) of subsection 
        (c) as paragraph (4) and inserting after paragraph (2) the 
        following:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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--
                </DELETED>
                        <DELETED>    ``(i) publication in local 
                        newspapers of general circulation;</DELETED>
                        <DELETED>    ``(ii) publication in other local 
                        media; and</DELETED>
                        <DELETED>    ``(iii) posting the notice on the 
                        agency's website;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(C) a requirement that the agency 
                include in its application or notice submitted under 
                paragraph (1) copies of all comments received under 
                subparagraph (B).'';</DELETED>
        <DELETED>    (4) by striking ``shall'' in the first sentence of 
        paragraph (4), as redesignated, of subsection (c) and inserting 
        ``may''; and</DELETED>
        <DELETED>    (5) by adding at the end the following:</DELETED>
<DELETED>    ``(l) Pilot Program for Passenger Facility Fee 
Authorizations at Small Airports.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(3) The eligible agency must submit to the 
        Secretary a notice of intention to impose a passenger facility 
        fee, which notice shall include--</DELETED>
                <DELETED>    ``(A) information that the Secretary may 
                require by regulation on each project for which 
                authority to impose a passenger facility charge is 
                sought;</DELETED>
                <DELETED>    ``(B) the amount of revenue from passenger 
                facility charges that is proposed to be collected for 
                each project; and</DELETED>
                <DELETED>    ``(C) the level of the passenger facility 
                charge that is proposed.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(7) The authority granted under this subsection 
        shall expire three years after the issuance of the regulation 
        required by paragraph (6).</DELETED>
        <DELETED>    ``(8) An acknowledgement issued under paragraph 
        (4) shall not be considered an order of the Secretary issued 
        under section 46110 of this title.''.</DELETED>

<DELETED>SEC. 210. QUARTERLY STATUS REPORTS.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 211. NOISE DISCLOSURE REQUIREMENTS.</DELETED>

<DELETED>    (a) Definitions.--Section 47501 is amended by adding at 
the end--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(6) `residential real estate' means real estate 
        upon which a residential dwelling is located.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Noise Exposure Maps.--Section 47503(b) is amended to 
read as follows:</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (c) Notification of Noise Exposure.--Chapter 457 is 
amended by adding at the end the following:</DELETED>
<DELETED>``Sec. 47511. Notification of noise exposure</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(e) Contents of Notice.--The notice required under this 
section shall disclose--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) the name and telephone number of the airport 
        where the purchaser may obtain more information on the aircraft 
        noise exposure.''.</DELETED>

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

<DELETED>    (a) In General.--Chapter 401 is amended by adding at the 
end the following:</DELETED>
<DELETED>``Sec.  40129. Prohibition on rent-free space requirements for 
              FAA or TSA</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Negotiated Agreements.--Subsection (a) does not 
prohibit--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The chapter analysis for 
chapter 401 is amended by adding at the end the following:</DELETED>

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

<DELETED>SEC. 213. SPECIAL RULES FOR FISCAL YEAR 2004.</DELETED>

<DELETED>    (a) Apportionment to certain airports with declining 
boardings.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Airports to which paragraph (1) applies.--
        Paragraph (1) applies to any airport determined by the 
        Secretary to have had--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (B) less than 10,000 passenger boardings 
                in calendar year 2002; and</DELETED>
                <DELETED>    (C) 10,000 or more passenger boardings in 
                calendar year 2000.</DELETED>
<DELETED>    (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.</DELETED>

       <DELETED>TITLE III--AIRLINE SERVICE DEVELOPMENT</DELETED>

<DELETED>SEC. 301. DELAY REDUCTION MEETINGS.</DELETED>

<DELETED>    (a) In General.--Subchapter I of chapter 417 is amended by 
adding at the end the following new section:</DELETED>
<DELETED>``Sec. 41723. Delay reduction actions</DELETED>
<DELETED>    ``(a) Delay Reduction Meetings.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(A) the Administrator of the Federal 
                Aviation Administration determines that it is necessary 
                to convene such a meeting; and</DELETED>
                <DELETED>    ``(B) the Secretary determines that the 
                meeting is necessary to meet a serious transportation 
                need or achieve an important public benefit.</DELETED>
        <DELETED>    ``(2) Meeting conditions.--Any meeting under 
        paragraph (1)--</DELETED>
                <DELETED>    ``(A) shall be chaired by the 
                Administrator;</DELETED>
                <DELETED>    ``(B) shall be open to all scheduled air 
                carriers; and</DELETED>
                <DELETED>    ``(C) shall be limited to discussions 
                involving the airports and time periods described in 
                the Administrator's determination.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Delay reduction offers.--An air carrier 
        attending the meeting shall make any delay reduction offer to 
        the Administrator rather than to another carrier.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Stormy Weather Agreements Limited Exemption.--
</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Requirements.--An authorization issued under 
        paragraph (1)--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) shall apply only to discussions and 
                agreements concerning flights directly affected by the 
                inclement weather; and</DELETED>
                <DELETED>    ``(C) shall remain in effect for a period 
                of 24 hours.</DELETED>
        <DELETED>    ``(3) Procedure.--The Secretary shall establish 
        procedures within 30 days after such date of enactment for--
        </DELETED>
                <DELETED>    ``(A) filing requests for an authorization 
                under paragraph (1);</DELETED>
                <DELETED>    ``(B) participation under paragraph (5) by 
                representatives of the Department of Transportation in 
                any meetings or discussions held pursuant to such an 
                order; and</DELETED>
                <DELETED>    ``(C) the determination by the Federal 
                Aviation Administration about the impact of inclement 
                weather.</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(5) DOT Participation.--The Secretary shall 
        ensure that the Department is represented at any meetings 
        authorized under this subsection.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The chapter analysis for 
chapter 417 is amended by inserting after the item relating to section 
41722 the following new item:</DELETED>

<DELETED>``41723. Delay reduction actions.''.

<DELETED>SEC. 302. REAUTHORIZATION OF ESSENTIAL AIR SERVICE 
              PROGRAM.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 303. SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT 
              PROGRAM.</DELETED>

<DELETED>    (a) 3-year Extension.--Section 41743(e)(2) of title 49, 
United States Code, is amended--</DELETED>
        <DELETED>    (1) by striking ``There is'' and inserting ``There 
        are'';</DELETED>
        <DELETED>    (2) by striking ``2001 and'' and inserting 
        ``2001,''; and</DELETED>
        <DELETED>    (3) by striking ``2003'' and inserting ``2003, and 
        $27,500,000 for the 3 fiscal year period beginning with fiscal 
        year 2004.''.</DELETED>
<DELETED>    (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.''.</DELETED>

<DELETED>SEC. 304. DOT STUDY OF COMPETITION AND ACCESS PROBLEMS AT 
              LARGE AND MEDIUM HUB AIRPORTS.</DELETED>

<DELETED>    (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--
</DELETED>
        <DELETED>    (1) gate usage and availability; and</DELETED>
        <DELETED>    (2) the effects of the pricing of gates and other 
        facilities on competition and access.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 305. COMPETITION DISCLOSURE REQUIREMENT FOR LARGE AND 
              MEDIUM HUB AIRPORTS.</DELETED>

<DELETED>    Section 47107 is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(q) Competition Disclosure Requirement.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(A) notify the Secretary of the denial; 
                and</DELETED>
                <DELETED>    ``(B) transmit a report to the Secretary 
                that--</DELETED>
                        <DELETED>    ``(i) describes the 
                        request;</DELETED>
                        <DELETED>    ``(ii) explains the reasons for 
                        the denial; and</DELETED>
                        <DELETED>    ``(iii) provides a time frame 
                        within which, if any, the airport will be able 
                        to accommodate the request.</DELETED>
        <DELETED>    ``(3) Definitions.--In this subsection:</DELETED>
                <DELETED>    ``(A) Hub airport.--The term `hub airport' 
                has the meaning given that term by section 
                41731(a)(3).</DELETED>
                <DELETED>    ``(B) Medium hub airport.--The term 
                `medium hub airport' has the meaning given that term by 
                section 41714(h)(9).''.</DELETED>

             <DELETED>TITLE IV--AVIATION SECURITY</DELETED>

<DELETED>SEC. 401. STUDY OF EFFECTIVENESS OF TRANSPORTATION SECURITY 
              SYSTEM.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 402. AVIATION SECURITY CAPITAL FUND.</DELETED>

<DELETED>    (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 to 
$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--</DELETED>
        <DELETED>    (1) 40 percent shall be made available for hub 
        airports;</DELETED>
        <DELETED>    (2) 20 percent shall be made available for medium 
        hub airports;</DELETED>
        <DELETED>    (3) 15 percent shall be made available for small 
        hub airports and non-hub airports; and</DELETED>
        <DELETED>    (4) 25 percent may be distributed at the 
        Secretary's discretion.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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 the that 
category.</DELETED>
<DELETED>    (d) Matching Requirements.--</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (A) For hub airports and medium hub 
                airports, 25 percent.</DELETED>
                <DELETED>    (B) For airports other than hub airports 
                and medium hub airports, 10 percent.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (f) Conforming Amendment.--Section 44940(a)(1) of title 
49, United States Code, is amended by adding at the end the 
following:</DELETED>
                <DELETED>    ``(H) The costs of security-related 
                capital improvements at airports.''.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 403. TECHNICAL AMENDMENTS RELATED TO SECURITY-RELATED 
              AIRPORT DEVELOPMENT.</DELETED>

<DELETED>    (a) Definition of Airport Development.--Section 
47102(3)(B) is amended--</DELETED>
        <DELETED>    (1) by inserting ``and'' after the semicolon in 
        clause (viii);</DELETED>
        <DELETED>    (2) by striking ``circular; and'' in clause (ix) 
        and inserting ``circular.''; and</DELETED>
        <DELETED>    (3) by striking clause (x).</DELETED>
<DELETED>    (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.''.</DELETED>

               <DELETED>TITLE V--MISCELLANEOUS</DELETED>

<DELETED>SEC. 501. EXTENSION OF WAR RISK INSURANCE AUTHORITY.</DELETED>

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

<DELETED>SEC. 502. COST-SHARING OF AIR TRAFFIC MODERNIZATION 
              PROJECTS.</DELETED>

<DELETED>    (a) In General.--Chapter 445 is amended by adding at the 
end the following:</DELETED>
<DELETED>``Sec.  44517. Program to permit cost-sharing of air traffic 
              modernization projects</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Limitation on Grant Amounts.--No eligible project 
may receive more than $5,000,000 in Federal funds under the 
program.</DELETED>
<DELETED>    ``(d) Funding.--The Secretary shall use amounts 
appropriated under section 48101(a) of this title to carry out this 
program.</DELETED>
<DELETED>    ``(e) Definitions.--In this section:</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(B) automation tools to effect 
                improvements in airport capacity, including passive 
                final approach spacing tools and traffic management 
                advisory equipment; and</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The chapter analyses for 
chapter 445 is amended by adding at the end the following:</DELETED>

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

<DELETED>SEC. 503. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS 
              VIOLATIONS.</DELETED>

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

<DELETED>SEC. 504. CLARIFICATIONS TO PROCUREMENT AUTHORITY.</DELETED>

<DELETED>    (a) Update and Clarification of Authority.--</DELETED>
        <DELETED>    (1) Section 40110(c) is amended to read as 
        follows:</DELETED>
<DELETED>    ``(c) Duties and Powers.--When carrying out subsection (a) 
of this section, the Administrator of the Federal Aviation 
Administration may--</DELETED>
        <DELETED>    ``(1) notwithstanding section 1341(a)(1) of title 
        31, lease an interest in property for not more than 20 
        years;</DELETED>
        <DELETED>    ``(2) consider the reasonable probable future use 
        of the underlying land in making an award for a condemnation of 
        an interest in airspace; and</DELETED>
        <DELETED>    ``(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.''.</DELETED>
        <DELETED>    (2) Section 40110(d)(1) is amended by striking 
        ``implement, not later than January 1, 1996,'' and inserting 
        ``implement''.</DELETED>
<DELETED>    (b) Clarification.--Section 106(f)(2)(A)(ii) is amended by 
striking ``property'' and inserting ``property, services,''.</DELETED>

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.
Sec. 214. Agreements for operation of airport facilities.
Sec. 215. Public agencies.
Sec. 216. Flexible funding for nonprimary airport apportionments.

                 TITLE III--AIRLINE SERVICE DEVELOPMENT

                    Subtitle A--Program Enhancements

Sec. 301. Delay reduction meetings.
Sec. 302. Small community air service development pilot program.
Sec. 303. DOT study of competition and access problems at large and 
                            medium hub airports.
Sec. 304. Competition disclosure requirement for large and medium hub 
                            airports.

    Subtitle B--Small Community and Rural Air Service Revitalization

Sec. 351. Reauthorization of essential air service program.
Sec. 352. Incentive program.
Sec. 353. Pilot programs.
Sec. 354. EAS program authority changes.

                      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.
Sec. 404. Armed forces charters.

                         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.
Sec. 505. Judicial review.
Sec. 506. Civil penalties.
Sec. 507. Miscellaneous amendments.
Sec. 508. Low-emission airport vehicles and infrastructure.
Sec. 509. Low-emission airport vehicles and ground support equipment.
Sec. 510. Pacific emergency diversion airport.
Sec. 511. Gulf of Mexico aviation service improvements.
Sec. 512. Air traffic control collegiate training initiative.
Sec. 513. Increase in certain slots.
Sec. 514. Air transportation oversight system plan.
Sec. 515. National small community air service development ombudsman.
Sec. 516. National commission on small community air service.
Sec. 517. Training certification for cabin crew.
Sec. 518. Aircraft manufacturer insurance.
Sec. 519. Ground-based precision navigational aids.
Sec. 520. Standby power efficiency program.

                   TITLE VI--SECOND CENTURY OF FLIGHT

Sec. 601. Findings.

        Subtitle A--The Office of Aerospace and Aviation Liaison

Sec. 621. Office of Aerospace and Aviation Liaison.
Sec. 622. National Air Traffic Management System Development Office.
Sec. 623. Report on certain market developments and government 
                            policies.

                     Subtitle B--Technical Programs

Sec. 641. Aerospace and Aviation Safety workforce initiative.
Sec. 642. Scholarships for service.

         Subtitle C--FAA Research, Engineering, and Development

Sec. 661. Research program to improve airfield pavements.
Sec. 662. Ensuring appropriate standards for airfield pavements.
Sec. 663. Assessment of wake turbulence research and development 
                            program.
Sec. 664. Cabin air quality research program.
Sec. 665. International role of the FAA.
Sec. 666. FAA report on other nations' safety and technological 
                            advancements.
Sec. 667. Development of analytical tools and certification methods.
Sec. 668. Pilot program to provide incentives for development of new 
                            technologies.
Sec. 669. FAA center for excellence for applied research and training 
                            in the use of advanced materials in 
                            transport aircraft.
Sec. 670. FAA certification of design organizations.
Sec. 671. Report on long term environmental improvements.

               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.

    (a) In General.--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.''.
    (b) Biannual Reports.--Beginning 180 days after the date of 
enactment of 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.

SEC. 103. FAA OPERATIONS.

    (a) In General.--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.''.
    (b) Annual Report.--Beginning with the submission of the Budget of 
the United States to the Congress for fiscal year 2004, 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.

SEC. 104. RESEARCH, ENGINEERING, AND DEVELOPMENT.

    (a) Amounts Authorized.--Section 48102(a) is amended--
            (1) by striking ``and'' at the end of paragraph (7);
            (2) by striking the period at the end of paragraph (8) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) for fiscal year 2004, $289,000,000, including--
                    ``(A) $200,000,000 to improve aviation safety, 
                including icing, crashworthiness, and aging aircraft;
                    ``(B) $18,000,000 to improve the efficiency of the 
                air traffic control system;
                    ``(C) $27,000,000 to reduce the environmental 
                impact of aviation;
                    ``(D) $16,000,000 to improve the efficiency of 
                mission support; and
                    ``(E) $28,000,000 to improve the durability and 
                maintainability of advanced material structures in 
                transport airframe structures;
            ``(10) for fiscal year 2005, $304,000,000, including--
                    ``(A) $211,000,000 to improve aviation safety;
                    ``(B) $19,000,000 to improve the efficiency of the 
                air traffic control system;
                    ``(C) $28,000,000 to reduce the environmental 
                impact of aviation;
                    ``(D) $17,000,000 to improve the efficiency of 
                mission support; and
                    ``(E) $29,000,000 to improve the durability and 
                maintainability of advanced material structures in 
                transport airframe structures; and
            ``(11) for fiscal year 2006, $317,000,000, including--
                    ``(A) $220,000,000 to improve aviation safety;
                    ``(B) $20,000,000 to improve the efficiency of the 
                air traffic control system;
                    ``(C) $29,000,000 to reduce the environmental 
                impact of aviation;
                    ``(D) $18,000,000 to improve the efficiency of 
                mission support; and
                    ``(E) $30,000,000 to improve the durability and 
                maintainability of advanced material structures in 
                transport airframe structures.''.

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) Annual report.--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) 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; and
                    ``(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 0.05 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 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 fiscal year 2004 under chapter 471 of that title for a project 
described in paragraph (2) or (3) of that section shall be 95 percent.

SEC. 214. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

    Section 47124 is amended--
            (1) by inserting ``a qualified entity or'' after ``with'' 
        in subsection (a);
            (2) by inserting ``entity or '' after ``allow the'' in 
        subsection (a);
            (3) by inserting ``entity or'' before ``State'' the last 
        place it appears in subsection (a);
            (4) by striking ``contract,'' in subsection (b)(2) and 
        inserting ``contract with a qualified entity, or'';
            (5) by striking ``the State'' each place it appears in 
        subsection (b)(2) and inserting ``the entity or State'';
            (6) by striking ``pilot'' in the caption of subsection 
        (b)(3);
            (7) by striking ``pilot'' in subsection (b)(3)(A);
            (8) by striking ``pilot'' in subsection (b)(3)(D);
            (9) by striking ``$6,000,000 per fiscal year'' in 
        subsection (b)(3)(E) and inserting ``$6,500,000 for fiscal 
        2004, $7,000,000 for fiscal year 2005, and $7,500,000 for 
        fiscal year 2006''; and
            (10) by striking ``$1,100,000.'' in subsection (b)(4)(C) 
        and inserting ``$1,500,000.''.

SEC. 215. PUBLIC AGENCIES.

    Section 47102(15) is amended--
            (1) by striking ``or'' after the semicolon in subparagraph 
        (B);
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) the Department of the Interior with respect 
                to an airport owned by the Department that is required 
                to be maintained for commercial aviation safety at a 
                remote location; or''.

SEC. 216. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

    (a) In General.--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)(2)(A) of this 
        title 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.''.
    (b) Conforming Amendments.--
            (1) Section 47108(a) is amended by inserting ``or section 
        47114(d)(2)(A)'' after ``under section 47114(c)''.
            (2) Section 47110 is amended--
                    (A) by inserting ``or section 47114(d)(2)(A)'' in 
                subsection (b)(2)(C) after ``of section 47114(c)'';
                    (B) by inserting ``or section 47114(d)(2)(A)'' in 
                subsection (g) after ``of section 47114(c)'';
                    (C) by striking ``of project.'' in subsection (g) 
                and inserting ``of the project.''; and
                    (D) 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 and for which the Government's share is paid only 
with funds apportioned to a sponsor under section 47114(d)(2)(A), if 
the Secretary determines that the sponsor has made adequate provision 
for financing airside needs of the airport.''.
            (3) Section 47119(b) is amended by--
                    (A) striking ``or'' after the semicolon in 
                paragraph (3);
                    (B) striking ``1970.'' in paragraph (4) and 
                inserting ``1970; or''; and
                    (C) adding at the end the following:
            ``(5) to a sponsor of a nonprimary airport referred to in 
        subparagraph (A) or (B) paragraph (2), any part of amounts 
        apportioned to the sponsor for the fiscal year under section 
        47114(d)(3)(A) of this title for project costs allowable under 
        section 47110(d) of this title.''.
    (c) Apportionment for All-Cargo Airports.--Section 47114(c)(2)(A) 
is amended by striking ``3'' and inserting ``3.5''.
    (d) Considerations for Cargo Operations.--Section 47115(d) is 
amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(7) the ability of the project to foster United States 
        competitiveness in securing global air cargo activity at a 
        United States airport.''.

                 TITLE III--AIRLINE SERVICE DEVELOPMENT

                    Subtitle A--Program Enhancements

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. SMALL COMMUNITY AIR SERVICE DEVELOPMENT PILOT PROGRAM.

    (a) 3-Year Extension.--Section 41743(e)(2) 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 each of fiscal years 2004, 2005, and 2006''.
    (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. 303. 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. 304. 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).''.

    Subtitle B--Small Community and Rural Air Service Revitalization

SEC. 351. REAUTHORIZATION OF ESSENTIAL AIR SERVICE PROGRAM.

    Section 41742(a) of title 49, United States Code, is amended to 
read as follows:
    ``(a) In General.--There are authorized to be appropriated to the 
Secretary of Transportation to carry out the essential air service 
under this subchapter, $113,000,000 for each of fiscal years 2004 
through 2007, $50,000,000 of which for each such year shall be derived 
from amounts received by the Federal Aviation Administration credited 
to the account established under section 45303 of this title or 
otherwise provided to the Administration.''.

SEC. 352. INCENTIVE PROGRAM.

    (a) In General.--Chapter 417 of title 49, United States Code, is 
amended by adding at the end the following:

              ``SUBCHAPTER IV--MARKETING INCENTIVE PROGRAM

        ``Sec. 41781. Purpose.
        ``Sec. 41782. Marketing program.
        ``Sec. 41783. State marketing assistance.
        ``Sec. 41784. Definitions.
        ``Sec. 41785. Authorization of appropriations.
``Sec.  41781. Purposes
    ``The purposes of this subchapter 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.
``Sec.  41782. Marketing program
    ``(a) In General.--The Secretary of Transportation shall establish 
a marketing incentive program for eligible essential air service 
communities receiving assistance under subchapter II under which the 
airport sponsor in such a community may receive a grant of not more 
than $50,000 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 the marketing plan shall come from non-Federal 
        sources. For purposes of this paragraph--
                    ``(A) the non-Federal portion of the publicly 
                financed costs may be derived from contributions in 
                kind; and
                    ``(B) State or local matching contributions may not 
                be derived, directly or indirectly, from Federal funds, 
                but the use by a state or 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, the Secretary 
        determines that the marketing plan has increased average 
        monthly boardings, or the level of passenger usage, at the 
        airport facilities at 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 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, the Secretary determines that the marketing plan has 
        increased average monthly boardings, or the level of passenger 
        usage, at the airport facilities at 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 for the following 12-month period.
``Sec.  41783. State marketing assistance
    ``The Secretary of Transportation may provide up to $50,000 in 
technical assistance to any State within which an eligible essential 
air service community is located for the purpose of assisting the State 
and such communities to develop methods to increase boardings in such 
communities. At least 10 percent of the costs of the activity with 
which the assistance is associated shall come from non-Federal sources, 
including contributions in kind.
``Sec.  41784. Definitions
    ``In this subchapter:
            ``(1) Eligible place.--The term `eligible place' has the 
        meaning given that term in section 41731(a)(1).
            ``(2) Eligible essential air service community.--The term 
        `eligible essential air service community' means an eligible 
        place that--
                    ``(A) submits an application to the Secretary in 
                such form, at such time, and containing such 
                information as the Secretary may require, including a 
                detailed marketing plan, or specifications for the 
                development of such a plan, to increase average 
                boardings, or the level of passenger usage, at its 
                airport facilities; and
                    ``(B) provides assurances, satisfactory to the 
                Secretary, that it is able to meet the non-Federal 
                funding requirements of section 41782(b)(1).
            ``(3) Passenger boardings.--The term `passenger boardings' 
        has the meaning given that term by section 47102(10).
            ``(4) Sponsor.--The term `sponsor' has the meaning given 
        that term in section 47102(19).
``Sec.  41785. Authorization of appropriations
    ``There are authorized to be appropriated to the Secretary of 
Transportation $12,000,000 for each of fiscal years 2004 through 2007, 
not more than $200,000 per year of which may be used for administrative 
costs.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417 of 
such title is amended by inserting after the item relating to section 
41767 the following:

              ``subchapter iv--marketing incentive program
        ``41781. Purpose.
        ``41782. Marketing program.
        ``41783. State marketing assistance.
        ``41784. Definitions.
        ``41785. Authorization of appropriations.''.

SEC. 353. PILOT PROGRAMS.

    (a) In General.--Subchapter II of chapter 417 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec. 41745. Other pilot programs
    ``(a) In General.--If the entire amount authorized to be 
appropriated to the Secretary of Transportation by section 41785 is 
appropriated for fiscal years 2004 through 2007, the Secretary of 
Transportation shall establish pilot programs that meet the 
requirements of this section for improving service to communities 
receiving essential air service assistance under this subchapter or 
consortia of such communities.
    ``(b) Programs Authorized.--
            ``(1) Community flexibility.--The Secretary shall establish 
        a pilot program for not more than 10 communities or consortia 
        of communities under which the airport sponsor of an airport 
        serving the community or consortium may elect to forego any 
        essential air service assistance under preceding sections of 
        this subchapter for a 10-year period in exchange for a grant 
        from the Secretary equal in value to twice the annual essential 
        air service assistance received for the most recently ended 
        calendar year. Under the program, and notwithstanding any 
        provision of law to the contrary, the Secretary shall make a 
        grant to each participating sponsor for use by the recipient 
        for any project that--
                    ``(A) is eligible for assistance under chapter 471;
                    ``(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.
            ``(2) Equipment changes.--
                    ``(A) In general.--The Secretary shall establish a 
                pilot program for not more than 10 communities or 
                consortia of communities under which, upon receiving a 
                petition from the sponsor of the airport serving the 
                community or consortium, the Secretary shall authorize 
                and request the essential air service provider for that 
                community or consortium to use smaller equipment to 
                provide the service and to consider increasing the 
                frequency of service using such smaller equipment. 
                Before granting any such petition, the Secretary shall 
                determine that passenger safety would not be 
                compromised by the use of such smaller equipment.
                    ``(B) Alternative services.--For any 3 aiport 
                sponsors participating in the program established under 
                subparagraph (A), the Secretary may establish a pilot 
                program under which--
                            ``(i) the Secretary provides 100 percent 
                        Federal funding for reasonable levels of 
                        alternative transportation services from the 
                        eligible place to the nearest hub airport or 
                        small hub airport;
                            ``(ii) the Secretary will authorize the 
                        sponsor to use its essential air service 
                        subsidy funds provided under preceding sections 
                        of this subchapter for any airport-related 
                        project that would improve airport facilities; 
                        and
                            ``(iii) the sponsor may make an irrevocable 
                        election to terminate its participation in the 
                        pilot program established under this paragraph 
                        after 1 year.
            ``(3) Cost-sharing.--The Secretary shall establish a pilot 
        program under which the sponsors of airports serving a 
        community or consortium of communities share the cost of 
        providing air transportation service greater than the basic 
        essential air service provided under this subchapter.
            ``(4) EAS local participation program.--
                    ``(A) In general.--The Secretary of Transportation 
                shall establish a pilot program under which 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 3-year 
                period.
                    ``(B) Designation of communities.--
                            ``(i) In general.--The Secretary may not 
                        designate any community under this paragraph 
                        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.
                            ``(ii) One community per state.--The 
                        Secretary may not designate--
                                    ``(I) more than 1 community per 
                                State under this paragraph; or
                                    ``(II) 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.
                    ``(C) Appeal of designation.--A community may 
                appeal its designation under this section. The 
                Secretary may withdraw the designation of a community 
                under this paragraph based on--
                            ``(i) the airport sponsor's ability to pay; 
                        or
                            ``(ii) 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.--
                            ``(i) 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, pre-
                        purchase 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.
                            ``(ii) 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 paragraph 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 paragraph 
                may participate in any program (including pilot 
                programs) authorized by this subchapter for which it is 
                otherwise eligible--
                            ``(i) without regard to any limitation on 
                        the number of communities that may participate 
                        in that program; and
                            ``(ii) 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 Senate 
                Committee on Commerce, Science, and Transportation and 
                the House of Representatives Committee on 
                Transportation and Infrastructure on--
                            ``(i) the economic condition of communities 
                        designated under this paragraph before their 
                        designation;
                            ``(ii) the impact of designation under this 
                        paragraph on such communities at the end of 
                        each of the 3 years following their 
                        designation; and
                            ``(iii) the impact of designation on air 
                        traffic patterns affecting air transportation 
                        to and from communities designated under this 
                        paragraph.
    ``(c) Code-Sharing.--Under the pilot program established under 
subsection (a), the Secretary is authorized to require air carriers 
providing service to participating communities and major air carriers 
(as defined in section 41716(a)(2)) serving large hub airports (as 
defined in section 41731(a)(3)) 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. The Secretary 
may not require air carriers to participate in such arrangements under 
this subsection for more than 10 such communities.
    ``(d) Track Service.--The Secretary shall require essential air 
service providers to track changes in service, including on-time 
arrivals and departures.
    ``(e) Administrative Provisions.--In order to participate in a 
pilot program established under this section, the airport sponsor for a 
community or consortium of communities shall submit an application to 
the Secretary in such form, at such time, and containing such 
information as the Secretary may require.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417 of 
such title is amended by inserting after the item relating to section 
41744 the following:

``41745. Other pilot programs.''.

SEC. 354. EAS PROGRAM AUTHORITY CHANGES.

    (a) Rate Renegotiation.--If the Secretary of Transportation 
determines that essential air service providers are experiencing 
significantly increased costs of providing service under subchapter II 
of chapter 417 of title 49, United States Code, the Secretary of 
Transportation may increase the rates of compensation payable under 
that subchapter within 30 days after the date of enactment of this Act 
without regard to any agreements or requirements relating to the 
renegotiation of contracts. For purposes of this subsection, the term 
``significantly increased costs'' means an average monthly cost 
increase of 10 percent or more.
    (b) Returned Funds.--Notwithstanding any provision of law to the 
contrary, any funds made available under subchapter II of chapter 417 
of title 49, United States Code, that are returned to the Secretary by 
an airport sponsor because of decreased subsidy needs for essential air 
service under that subchapter shall remain available to the Secretary 
and may be used by the Secretary under that subchapter to increase the 
frequency of flights at that airport.
    (c) Small Community Air Service Development Pilot Program.--Section 
41743(h) of such title is amended by striking ``an airport'' and 
inserting ``each airport''.

                      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. The first $500,000,000 derived from fees received under section 
44940(a)(1) of title 49, United States Code, in each of fiscal years 
2004, 2005, and 2006 shall be available to the Fund. The Under 
Secretary of Homeland Security for Border and Transportation Security 
shall impose the fee authorized by section 44940(a)(1) of such title so 
as to collect at least $500,000,000 in each of fiscal years 2004, 2005, 
and 2006 for deposit into the fund. 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 shall be distributed by the Secretary on the 
        basis of aviation security risks.
    (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 the 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 Amendments.--
            (1) Use of passenger fee funds.--Section 44940(a)(1) is 
        amended by adding at the end the following:
                    ``(H) The costs of security-related capital 
                improvements at airports.''.
            (2) Limitation on collection.--Section 44940(d)(4) is 
        amended by striking ``Act.'' and inserting ``Act or in section 
        402(a) of the Aviation Investment and Revitalization Vision 
        Act.''.
    (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.''.

SEC. 404. ARMED FORCES CHARTERS.

    Section 132 of the Aviation and Transportation Security Act (49 
U.S.C. 44903 note) is amended by adding at the end the following:
    ``(c) Exemption for Armed Forces Charters.--
            ``(1) In general.--Subsections (a) and (b) of this section, 
        and chapter 449 of title 49, United States Code, do not apply 
        to passengers and property carried by aircraft when employed to 
        provide charter transportation to members of the armed forces.
            ``(2) In general.--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) of 
        title 49, United States Code.
            ``(3) Armed forces defined.--In this subsection, the term 
        `armed forces' has the meaning given that term by section 
        101(a)(4) of title 10, United States Code.''.

                         TITLE V--MISCELLANEOUS

SEC. 501. EXTENSION OF WAR RISK INSURANCE AUTHORITY.

    (a) Extension of Policies.--Section 44302(f)(1) is amended by 
striking ``2004,'' each place it appears and inserting ``2006,''.
    (b) Extension of Liability Limitation.--Section 44303(b) is amended 
by striking ``2004,'' and inserting ``2006,''.
    (c) Extension of Authority.--Section 44310 is amended by striking 
``2004.'' 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,''.

SEC. 505. JUDICIAL REVIEW.

    Section 46110(c) is amended by adding at the end the following: 
``Except as otherwise provided in this subtitle, judicial review of an 
order issued, in whole or in part, pursuant to this part, part B of 
this subtitle , or subsection (l) or (s) of section 114 of this title, 
shall be in accordance with the provisions of this section.''.

SEC. 506. 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'';
            (2) by striking ``or'' the last time 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; and
            (5) by striking ``paragraphs (1) and (2)'' in paragraph 
        (4), as redesignated, and inserting ``paragraph (1)''.
    (b) Increase in Limit on Administrative Authority and Civil 
Penalty.--Section 46301(d) is amended--
            (1) by striking ``$50,000;'' in paragraph (4)(A) by 
        inserting ``$50,000, if the violation occurred before the date 
        of enactment of the Aviation Authorization Act of 2003, or 
        $1,000,000, if the violation occurred on or after that date;''; 
        and
            (2) by striking ``$50,000.'' in paragraph (8) and inserting 
        ``$50,000, if the violation occurred before the date of 
        enactment of the Aviation Authorization Act of 2003, or 
        $1,000,000, if the violation occurred on or after that date.''.

SEC. 507. MISCELLANEOUS AMENDMENTS.

    (a) Amounts Subject to Apportionment Under Chapter 471.--
            (1) In general.--Section 47102 is amended--
                    (A) by striking paragraph (6) and inserting the 
                following:
            ``(6) `amount newly made available' means the amount newly 
        made available under section 48103 of this title as an 
        authorization for grant obligations for a fiscal year, as that 
        amount may be limited in that year by a provision in an 
        appropriations Act, but as determined without regard to grant 
        obligation recoveries made in that year or amounts covered by 
        section 47107(f).''; and
                    (B) by redesignating paragraphs (7) through (20) as 
                paragraphs (8) through (21), and inserting after 
                paragraph (6) the following:
            ``(7) `amount subject to apportionment' means the amount 
        newly made available, less the amount made available for the 
        fiscal year for administrative expenses under section 48105.''.
            (2) Conforming Amendments.--
                    (A) Section 41742(b) is amended by striking 
                ``Notwithstanding section 47114(g) of this title, any'' 
                and inserting ``Any''.
                    (B) Section 47104(b) is amended to read as follows:
    ``(b) Incurring Obligations.--The Secretary may incur obligations 
to make grants from the amount subject to apportionment as soon as the 
apportionments required by sections 47114(c) and (d)(2) of this title 
have been issued.''.
                    (C) Section 47107(f)(3) is amended by striking 
                ``made available to the Secretary under section 48103 
                of this title and'' and inserting ``subject to 
                apportionment, and is''.
                    (D) Section 47114 is amended--
                            (i) by striking subsection (a);
                            (ii) by striking ``apportionment for that 
                        fiscal year'' in subsection (b) and inserting 
                        ``apportionment'';
                            (iii) by striking ``total amount made 
                        available under section 48103'' in subsections 
                        (c)(2)(C), (d)(3), and (e)(4) and inserting 
                        ``amount subject to apportionment'';
                            (iv) by striking ``each fiscal year'' in 
                        subsection (c)(2)(A); and
                            (v) by striking ``for each fiscal year'' in 
                        subsection (d)(2).
                    (E) Subsection 47116(b) is amended by striking 
                ``amounts are made available under section 48103 of 
                this title'' and inserting ``an amount is subject to 
                apportionment''.
                    (F) Section 47117 is amended--
                            (i) by striking ``amounts are made 
                        available under section 48103 of this title.'' 
                        in subsection (a) and inserting ``an amount is 
                        subject to apportionment.'';
                            (ii) by striking ``a sufficient amount is 
                        made available under section 48103.'' in 
                        subsection (f)(2)(A) and inserting ``there is a 
                        sufficient amount subject to apportionment.'';
                            (iii) in subsection (f)(2)(B), by inserting 
                        ``in'' before ``the succeeding'';
                            (iv) by striking ``Newly available'' in the 
                        caption of subsection (f)(3) and inserting 
                        ``Restored'';
                            (v) by striking ``newly available under 
                        section 48103 of this title,'' in subsection 
                        (f)(3)(A) and inserting ``subject to 
                        apportionment,'';
                            (vi) by striking ``made available under 
                        section 48103 for such obligations for such 
                        fiscal year.'' in subsection (f)(4) and 
                        inserting ``subject to apportionment.''; and
                            (vii) by striking ``enacted after September 
                        3, 1982,'' in subsection (g).
    (b) Recovered Funds.--Section 47117 is amended by adding at the end 
the following:
    ``(g) Crediting of Recovered Funds.--For the purpose of determining 
compliance with a limitation on the amount of grant obligations that 
may be incurred in a fiscal year imposed by an appropriations Act, an 
amount that is recovered by canceling or reducing a grant obligation--
            ``(1) shall be treated as a negative obligation that is to 
        be netted against the gross obligation limitation, and
            ``(2) may permit the gross limitation to be exceeded by an 
        equal amount.''.
    (c) 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. If a grant is provided, the United States 
Government's share of the cost of the data collection shall be 100 
percent.''.
    (d) Statute of Limitations.--Section 47107(l)(5)(A) is amended by 
inserting ``or any other governmental entity'' after ``sponsor''.
    (e) Audit Certification.--Section 47107(m) is amended--
            (1) by striking ``promulgate regulations that'' in 
        paragraph (1) and inserting ``include a provision in the 
        compliance supplement provisions to'';
            (2) by striking ``and opinion of the review'' in paragraph 
        (1); and
            (3) by striking paragraph (3).
    (f) Noise Exposure Maps.--Section 47503(a) is amended by striking 
``1985,'' and inserting ``a forecast year that is at least 5 years in 
the future,''.
    (g) Clarification of Applicability of PFCs to Military Charters.--
Section 40117(e)(2) is amended--
            (1) by striking ``and'' after the semicolon in subparagraph 
        (D);
            (2) by striking ``passengers.'' in subparagraph (E) and 
        inserting ``passengers; and''; and
            (3) by adding at the end 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 United States 
        Department of Defense.''.

SEC. 508. LOW-EMISSION AIRPORT VEHICLES AND INFRASTRUCTURE.

    (a) Purpose.--The purpose of this section is to permit the use of 
funds made available under subchapter 471 to encourage commercial 
service airports in air quality nonattainment and maintenance areas to 
undertake projects for gate electrification, acquisition or conversion 
of airport vehicles and airport-owned ground support equipment to 
acquire low-emission technology, low-emission technology fuel systems, 
and other related air quality projects on a voluntary basis to improve 
air quality and more aggressively address the constraints that 
emissions can impose on future aviation growth. Use of those funds is 
conditioned on airports receiving credits for emissions reductions that 
can be used to mitigate the air quality effects of future airport 
development. Making these projects eligible for funding in addition to 
those projects that are already eligible under section 47102(3)(F) is 
intended to support those projects that, at the time of execution, may 
not be required by the Clean Air Act (42 U.S.C. 7501 et seq.), but may 
be needed in the future.
    (b) Activities Added to Definition of ``Airport Development''.--
Section 47102(3) is amended 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 
                175(A) 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 of this title. The Secretary, 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.
                    ``(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 175(A) 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 of this title. The 
                Secretary, in consultation with the Administrator of 
                the Environmental Protection Agency, shall issue 
                guidance describing eligible low-emission vehicle 
                technology and stating how airport sponsors will 
                demonstrate benefits. For airport-owned vehicles and 
                equipment, the acquisition of which are not otherwise 
                eligible for assistance under this subchapter, the 
                incremental cost of equipping such vehicles or 
                equipment with low-emission technology shall be treated 
                as eligible for assistance.''.
    (c) Low-emission Technology Defined.--Section 47102 is amended by 
redesignating paragraphs (10) through (20), as paragraphs (11) through 
(21) respectively, and inserting after paragraph (9) the following:
            ``(11) `low-emission technology' means technology for new 
        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 non-petroleum based, 
        as defined by the Department of Energy, but not excluding 
        hybrid systems.''.
    (d) Emissions Credits.--
            (1) In general.--Subchapter I of chapter 471, as amended by 
        section 206 of this Act, is further amended by adding at the 
        end the following:
``Sec. 47139. Emission credits for air quality projects
    ``(a) In General.--The Secretary and the Administrator of the 
Environmental Protection Agency shall jointly agree on how to assure 
that airport sponsors receive appropriate emission credits for projects 
described in sections 40117(a)(3)(G), 47102(3)(K), or 47102(3)(L) of 
this title. The agreement must, at a minimum, include provisions to 
ensure that--
            ``(1) the credits will be consistent with the Clean Air Act 
        (42 U.S.C. 7402 et seq.);
            ``(2) credits generated by the emissions reductions in 
        criteria pollutants are kept by the airport sponsor and may be 
        used for purposes of any current or future general conformity 
        determination or as offsets under the New Source Review 
        program;
            ``(3) there is national consistency in the way credits are 
        calculated and are provided to airports;
            ``(4) credits are provided to airport sponsors in a timely 
        manner; and
            ``(5) there is a method by which the Secretary can be 
        assured that, for any specific project for which funding is 
        being requested, the appropriate credits will be granted.
    ``(b) Assurance of Receipt of Credits.--
            ``(1) In general.--As a condition for making a grant for a 
        project described in section 47102(3)(K), 47102(3)(L), or 47140 
        of this title, or as a condition for granting approval to 
        collect or use a passenger facility fee for a project described 
        in sections 40117(a)(3)(G), 47102(3)(K), 47102(3)(L), or 47140 
        of this title, 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 subsection.
            ``(2) Credits for certain existing projects.--The Secretary 
        and the Administrator of the Environmental Protection Agency 
        shall jointly agree on how to provide emission credits to 
        projects previously approved under section 47136 of this title 
        during fiscal years 2001 through 2003, under terms consistent 
        with this section.''.
            (2) Conforming amendment.--The chapter analysis for chapter 
        471 is amended by inserting after the item relating to section 
        47138 the following:

``47139. Emission credits for air quality projects.''.
    (e) 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 subject to 
apportionment to retrofit existing eligible airport ground support 
equipment which 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 or maintenance area (as defined in sections 171(2) and 
175(A) of the Clean Air Act (42 U.S.C. 7501(2), 7505a)).
    ``(c) Selection Criteria.--In selecting 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 this 
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.--For purposes of this section, 
the term `eligible equipment' means ground service or maintenance 
equipment that--
            ``(1) is located at the airport;
            ``(2) used to support aeronautical and related activities 
        on the airport; and
            ``(3) will remain in operation at the airport.''.
            (2) Conforming amendment.--The chapter 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.''.

SEC. 509. LOW-EMISSION AIRPORT VEHICLES AND GROUND SUPPORT EQUIPMENT.

    Section 40117(a)(3) is amended by inserting at the end the 
following:
                    ``(G) A project for the acquisition or conversion 
                of ground support equipment or airport-owned vehicles 
                used at a commercial service airport with, or to, low-
                emission technology or cleaner burning conventional 
                fuels, or the retrofitting of such equipment or 
                vehicles that are powered by a diesel or gasoline 
                engine with emission control technologies certified or 
                verified by the Environmental Protection Agency to 
                reduce emissions, if the airport is located in an air 
                quality nonattainment or maintenance area (as defined 
                in sections 171(2) and 175(A) 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 of this title. The 
                Secretary, in consultation with the Administrator of 
                the Environmental Protection Agency, shall issue 
                guidance for eligible projects and for how benefits 
                must be demonstrated. The eligible cost is limited to 
                the incremental amount that exceeds the cost of 
                acquiring other vehicles or equipment that are not low-
                emission and would be used for the same purpose, or to 
                the cost of low-emission retrofitting. For purposes of 
                this paragraph, the term ``ground support equipment'' 
                means service and maintenance equipment used at an 
                airport to support aeronautical operations and related 
                activities.''.

SEC. 510. PACIFIC EMERGENCY DIVERSION AIRPORT.

    (a) In General.--The Secretary of Transportation shall enter into a 
memorandum of understanding with the Secretaries of Defense, the 
Interior, and Homeland Security to facilitate the sale of aircraft fuel 
on Midway Island, so that the revenue from the fuel sales can be used 
to operate Midway Island Airport in accordance with Federal Aviation 
Administration airport standards. The memorandum shall also address the 
long term potential for promoting tourism as a means of generating 
revenue to operate the airport.
    (b) Navigational Aids.--The Administrator of the Federal Aviation 
Administration may support and be responsible for maintaining all 
aviation-related navigational aids at Midway Island Airport.

SEC. 511. GULF OF MEXICO AVIATION SERVICE IMPROVEMENTS.

    (a) In General.--The Secretary of Transportation may develop and 
carry out a program designed to expand and improve the safety, 
efficiency, and security of--
            (1) air traffic control services provided to aviation in 
        the Gulf of Mexico area; and
            (2) aviation-related navigational, low altitude 
        communications and surveillance, and weather services in that 
        area.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation such sums as may be 
necessary to carry out this section for the 4 fiscal year period 
beginning with fiscal year 2004.

SEC. 512. AIR TRAFFIC CONTROL COLLEGIATE TRAINING INITIATIVE.

    The Secretary of Transportation may use, from funds available to 
the Secretary and not otherwise obligated or expended, such sums as may 
be necessary to carry out and expand the Air Traffic Control Collegiate 
Training Initiative.

SEC. 513. INCREASE IN CERTAIN SLOTS.

    (a) In General.--Section 41714(d)(1)(C) is amended by striking 
``2'' and inserting ``3''.
    (b) Beyond-Perimeter Exemptions.--Section 41718(a) of title 49, 
United States Code, is amended by striking ``12'' and inserting ``24''.

SEC. 514. 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 an action plan, with an 
implementation schedule--
            (1) to provide adequate oversight of repair stations (known 
        as Part 145 repair stations) and ensure that Administration-
        approved repair stations outside the United States are subject 
        to the same level of oversight and quality control as those 
        located in the United States; and
            (2) 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)(2) shall set forth the action the Administration 
will take under the plan--
            (1) to develop specific, clear, and meaningful inspection 
        checklists for the use of 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.

SEC. 515. NATIONAL SMALL COMMUNITY AIR SERVICE DEVELOPMENT OMBUDSMAN.

    (a) In General.--Subchapter II of chapter 417, as amended by 
section 353 of this Act, is amended by adding at the end the following:
``Sec. 41746. National Small Community Air Service Development 
              Ombudsman
    ``(a) Establishment.--There is established in the Department of 
Transportation the position of National Small Community Air Service 
Ombudsman (in this section referred to as the `Ombudsman'). The 
Secretary of Transportation shall appoint the Ombudsman. The Ombudsman 
shall report to the Secretary.
    ``(b) Purpose.--The Ombudsman, in consultation with officials from 
small communities in the United States, State aviation agencies, and 
State and local economic development agencies, shall develop strategies 
for retaining and enhancing the air service provided to small 
communities in the United States.
    ``(c) Outreach.--The Ombudsman shall solicit and receive comments 
from small communities regarding strategies for retaining and enhancing 
air service, and shall act as a liaison between the communities and 
Federal agencies for the purpose of developing such strategies.''
    (b) Conforming Amendment.--The chapter analysis for chapter 417 is 
amended by inserting after the item relating to section 47145 the 
following:

``47146. National small community air service development ombudsman.''.

SEC. 516. 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 9 
        members of whom--
                    (A) 3 members shall be appointed by the Secretary;
                    (B) 2 members shall be appointed by the Majority 
                Leader of the Senate;
                    (C) 1 member shall be appointed by the Minority 
                Leader of the Senate;
                    (D) 2 members shall be appointed by the Speaker of 
                the House of Representatives; and
                    (E) 1 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) 1 member shall be a representative of a 
                regional airline;
                    (B) 1 member shall be a representative of an FAA-
                designated small-hub airport; and
                    (C) 1 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 member appointed by the Secretary under 
subsection (b)(2)(B) shall serve as the Chairperson of the Commission 
(in this section referred to as the ``Chairperson'').
    (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 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, 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, 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.

SEC. 517. TRAINING CERTIFICATION FOR CABIN CREW.

    Section 44935 is amended by adding at the end the following:
    ``(g) Training Standards for Cabin Crew.--
            ``(1) In general.--The Administrator shall establish 
        standards for cabin crew training, consistent with the Homeland 
        Security Act of 2002, and the issuance of certification. The 
        Administrator shall require cabin crew members to complete a 
        cabin crew training courses approved by the Federal Aviation 
        Administration and the Transportation Security Administration.
            ``(2) Certification.--
                    ``(A) In general.--The Administrator shall provide 
                for the issuance of an appropriate certificate to each 
                individual who successfully completes such a course.
                    ``(B) Contents.--The cabin crew certificate shall--
                            ``(i) be numbered and recorded by the 
                        Administrator of the Federal Aviation 
                        Administration;
                            ``(ii) contain the name, address, and 
                        description of the individual to whom the 
                        certificate is issued; and
                            ``(iii) contain the name of the current air 
                        carrier employer of the certificate holder;
                            ``(iv) contain terms the Administrator 
                        determines are necessary to ensure safety in 
                        air commerce, including terms that the 
                        certificate shall remain valid unless the 
                        Administrator suspends or revokes the 
                        certificate; and
                            ``(v) designate the type and model of 
                        aircraft on which the certificate holder cabin 
                        crew member has successfully completed all 
                        Federal Aviation Administration and 
                        Transportation Security Administration required 
                        training in order to be assigned duties on 
                        board such type and model of aircraft.
            ``(3) Cabin crew defined.--In this subsection, the term 
        `cabin crew' means individuals working in an aircraft cabin on 
        board a transport category aircraft with 20 or more seats.''.

SEC. 518. AIRCRAFT MANUFACTURER INSURANCE.

    (a) In General.--Section 44302(f) is amended by adding at the end 
the following:
            ``(3) Aircraft manufacturers.--The Secretary may offer to 
        provide war and terrorism insurance to aircraft manufacturers 
        for loss or damage arising from the operation of an American or 
        foreign-flag aircraft, in excess of $50,000,000 in the 
        aggregate or in excess of such other amounts of available 
        primary insurance, on such terms and conditions as the 
        Secretary may prescribe.''.
    (b) Conforming Amendments.--
            (1) Definition of aircraft manufacturer.--Section 44301 is 
        amended by adding at the end the following:
            ``(3) `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.''.
            (2) Coverage.--Section 44304(a) is amended by adding at the 
        end the following:
            ``(6) war and terrorism losses or damages of an aircraft 
        manufacturer arising from the operation of an American or 
        foreign-flag aircraft.''.

SEC. 519. GROUND-BASED PRECISION NAVIGATIONAL AIDS.

    (a) In General.--The Secretary of Transportation may establish a 
program for the installation, operation, and maintenance of ground-
based precision navigational aids for terrain-challenged airports. The 
program shall include provision for--
            (1) preventative and corrective maintenance for the life of 
        each system of such aids; and
            (2) requisite staffing and resources for the Federal 
        Aviation Administration's efficient maintenance of the program.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation to carry out the 
program established under subsection (a) such sums as may be necessary.

SEC. 520. STANDBY POWER EFFICIENCY PROGRAM.

    (a) Establishment.--The Secretary of Transportation, in cooperation 
with the Secretary of Energy and, where applicable, the Secretary of 
Defense, may 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.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation such sums as may be 
necessary for each of fiscal years 2004 through 2008 to carry out the 
provisions of this section.

                   TITLE VI--SECOND CENTURY OF FLIGHT

SEC. 601. FINDINGS.

    The Congress finds the following:
            (1) Since 1990, the United States has lost more than 
        600,000 aerospace jobs.
            (2) Over the last year, approximately 100,000 airline 
        workers and aerospace workers have lost their jobs as a result 
        of the terrorist attacks in the United States on September 11, 
        2001, and the slowdown in the world economy.
            (3) The United States has revolutionized the way people 
        travel, developing new technologies and aircraft to move people 
        more efficiently and more safely.
            (4) Past Federal investment in aeronautics research and 
        development have benefited the economy and national security of 
        the United States and the quality of life of its citizens.
            (5) The total impact of civil aviation on the United States 
        economy exceeds $900 billion annually--9 percent of the gross 
        national product--and 11 million 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 America's highly skilled, 
        technologically qualified work force.
            (6) Aerospace technologies, products and services underpin 
        the advanced capabilities of our men and women in uniform and 
        those charged with homeland security.
            (7) 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.
            (8) The United States is in danger of losing its aerospace 
        leadership to international competitors aided by persistent 
        government intervention. Many governments take their funding 
        beyond basic technology development, choosing to fund product 
        development and often bring the product to market, even if the 
        products are not fully commercially viable. Moreover, 
        international competitors have recognized the importance of 
        noise, emission, fuel consumption, and constraints of the 
        aviation system and have established aggressive agendas for 
        addressing each of these concerns.
            (9) Efforts by the European Union, through a variety of 
        means, will challenge the United States' leadership position in 
        aerospace. A recent report outlined the European Union's goal 
        of becoming the world's leader in aviation and aeronautics by 
        the end of 2020, utilizing better coordination among research 
        programs, planning, and funding to accomplish this goal.
            (10) Revitalization and coordination of the United States' 
        efforts to maintain its leadership in aviation and aeronautics 
        are critical and must begin now.
            (11) 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 America's 
                leadership and strength throughout the 21st century;
                    (B) Aerospace will play an integral role in our 
                economy, our security, and our mobility; and
                    (C) global leadership in aerospace is a national 
                imperative.
            (12) Despite the downturn in the global economy, Federal 
        Aviation Administration projections indicate that upwards of 1 
        billion people will fly annually by 2013. Efforts must begin 
        now to prepare for future growth in the number of airline 
        passengers.
            (13) 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.
            (14) Current and projected levels of Federal investment in 
        aeronautics research and development are not sufficient to 
        address concerns related to the growth of aviation.

        Subtitle A--The Office of Aerospace and Aviation Liaison

SEC. 621. OFFICE OF AEROSPACE AND AVIATION LIAISON.

    (a) Establishment.--There is established within the Department of 
Transportation an Office of Aerospace and Aviation Liaison.
    (b) Function.--The Office shall--
            (1) coordinate aviation and aeronautics research programs 
        to achieve the goal of more effective and directed programs 
        that will result in applicable research;
            (2) coordinate goals and priorities and coordinate research 
        activities within the Federal Government with United States 
        aviation and aeronautical firms;
            (3) coordinate 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;
            (4) facilitate the transfer of technology from research 
        programs such as the National Aeronautics and Space 
        Administration program established under section 681 and the 
        Department of Defense Advanced Research Projects Agency program 
        to Federal agencies with operational responsibilities and to 
        the private sector;
            (5) review 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;
            (6) review aircraft operating procedures intended to reduce 
        noise and emissions, identify and coordinate research efforts 
        on aircraft noise and emissions reduction, and ensure that 
        aircraft noise and emissions reduction regulatory measures are 
        coordinated; and
            (7) work with the National Air Traffic Management System 
        Development Office to coordinate research needs and 
        applications for the next generation air traffic management 
        system.
    (c) Public-Private Participation.--In carrying out its functions 
under this section, the Office shall consult with, and ensure 
participation by, the private sector (including representatives of 
general aviation, commercial aviation, and the space industry), members 
of the public, and other interested parties.
    (d) Reporting Requirements.--
            (1) Initial status report.--Not later than 90 days after 
        the date of enactment of this Act, the Secretary of 
        Transportation shall submit a report to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and Infrastructure 
        on the status of the establishment of the Office of Aerospace 
        and Aviation Liaison, including the name of the program 
        manager, the list of staff from each participating department 
        or agency, names of the national team participants, and the 
        schedule for future actions.
            (2) Plan.--The Office shall submit to the Senate Committee 
        on Commerce, Science, and Transportation and the House of 
        Representatives Committee on Science a plan for implementing 
        paragraphs (1) and (2) of subsection (b) and a proposed budget 
        for implementing the plan.
            (3) Annual report.--The Office shall submit to the Senate 
        Committee on Commerce, Science, and Transportation, the House 
        of Representatives Committee on Transportation and 
        Infrastructure, and the House of Representatives Committee on 
        Science an annual report that--
                    (A) contains a unified budget that combines the 
                budgets of each program coordinated by the Office; and
                    (B) describes the coordination activities of the 
                Office during the preceding year.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $2,000,000 for fiscal 
years 2004 and 2005 to carry out this section, such sums to remain 
available until expended.

SEC. 622. NATIONAL AIR TRAFFIC MANAGEMENT SYSTEM DEVELOPMENT OFFICE.

    (a) Establishment.--There is established within the Federal 
Aviation Administration a National Air Traffic Management System 
Development Office, the head of which shall report directly to the 
Administrator.
    (b) Development of Next Generation Air Traffic Management System.--
            (1) In general.--The Office shall develop a next generation 
        air traffic management system plan for the United States that 
        will--
                    (A) transform the national airspace system to meet 
                air transportation mobility, efficiency, and capacity 
                needs beyond those currently included in the Federal 
                Aviation Administration's operational evolution plan;
                    (B) result in a national airspace system that can 
                safely and efficiently accommodate the needs of all 
                users;
                    (C) build upon current air traffic management and 
                infrastructure initiatives;
                    (D) improve the security, safety, quality, and 
                affordability of aviation services;
                    (E) utilize a system-of-systems, multi-agency 
                approach to leverage investments in civil aviation, 
                homeland security, and national security;
                    (F) develop a highly integrated, secure 
                architecture to enable common situational awareness for 
                all appropriate system users; and
                    (G) ensure seamless global operations for system 
                users, to the maximum extent possible.
            (2) Multi-agency and stakeholder involvement.--In 
        developing the system, the Office shall--
                    (A) include staff from the Federal Aviation 
                Administration, the National Aeronautics and Space 
                Administration, the Department of Homeland Security, 
                the Department of Defense, the Department of Commerce, 
                and other Federal agencies and departments determined 
                by the Secretary of Transportation to have an important 
                interest in, or responsibility for, other aspects of 
                the system; and
                    (B) consult with, and ensure participation by, the 
                private sector (including representatives of general 
                aviation, commercial aviation, and the space industry), 
                members of the public, and other interested parties.
            (3) Development criteria and requirements.--In developing 
        the next generation air traffic management system plan under 
        paragraph (1), the Office shall--
                    (A) develop system performance requirements;
                    (B) select an operational concept to meet system 
                performance requirements for all system users;
                    (C) ensure integration of civil and military system 
                requirements, balancing safety, security, and 
                efficiency, in order to leverage Federal funding;
                    (D) utilize modeling, simulation, and analytical 
                tools to quantify and validate system performance and 
                benefits;
                    (E) develop a transition plan, including necessary 
                regulatory aspects, that ensures operational 
                achievability for system operators;
                    (F) develop transition requirements for ongoing 
                modernization programs, if necessary;
                    (G) develop a schedule for aircraft equipment 
                implementation and appropriate benefits and incentives 
                to make that schedule achievable; and
                    (H) assess, as part of its function within the 
                Office of Aeronautical and Aviation Liaison, the 
                technical readiness of appropriate research 
                technological advances for integration of such research 
                and advances into the plan.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator of the Federal Aviation 
Administration $300,000,000 for the period beginning with fiscal year 
2004 and ending with fiscal year 2010 to carry out this section.

SEC. 623. REPORT ON CERTAIN MARKET DEVELOPMENTS AND GOVERNMENT 
              POLICIES.

    Within 6 months after the date of enactment of this Act, the 
Department of Transportation's Office of Aerospace and Aviation 
liaison, in cooperation with 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.

                     Subtitle B--Technical Programs

SEC. 641. AEROSPACE AND AVIATION SAFETY WORKFORCE INITIATIVE.

    (a) In General.--The Administrator of the National Aeronautics and 
Space Administration and the Administrator of the Federal Aviation 
Administration shall establish a joint program of competitive, merit-
based grants for eligible applicants to increase the number of students 
studying toward and completing technical training programs, certificate 
programs, and associate's, bachelor's, master's, or doctorate degrees 
in fields related to aerospace and aviation safety.
    (b) Increased Participation Goal.--In selecting projects under this 
paragraph, the Director shall consider means of increasing the number 
of students studying toward and completing technical training and 
apprenticeship programs, certificate programs, and associate's or 
bachelor's degrees in fields related to aerospace and aviation safety 
who are individuals identified in section 33 or 34 of the Science and 
Engineering Equal Opportunities Act (42 U.S.C. 1885a or 1885b).
    (c) Supportable Projects.--The types of projects the Administrators 
may consider under this paragraph include those that promote high 
quality--
            (1) interdisciplinary teaching;
            (2) undergraduate-conducted research;
            (3) mentor relationships for students;
            (4) graduate programs;
            (5) bridge programs that enable students at community 
        colleges to matriculate directly into baccalaureate aerospace 
        and aviation safety related programs;
            (6) internships, including mentoring programs, carried out 
        in partnership with the aerospace and aviation industry;
            (7) technical training and apprenticeship that prepares 
        students for careers in aerospace manufacturing or operations; 
        and
            (8) innovative uses of digital technologies, particularly 
        at institutions of higher education that serve high numbers or 
        percentages of economically disadvantaged students.
    (d) Grantee Requirements.--In developing grant requirements under 
this section, the Administrators shall consider means, developed in 
concert with applicants, of increasing the number of students studying 
toward and completing technical training and apprenticeship programs, 
certificate programs, and associate's or bachelor's degrees in fields 
related to aerospace and aviation safety.
    (e) Definitions.--In this section:
            (1) Eligible applicant defined.--The term ``eligible 
        applicant'' means--
                    (A) an institution of higher education;
                    (B) a consortium of institutions of higher 
                education; or
                    (C) a partnership between--
                            (i) an institution of higher education or a 
                        consortium of such institutions; and
                            (ii) a nonprofit organization, a State or 
                        local government, or a private company, with 
                        demonstrated experience and effectiveness in 
                        aerospace education.
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term by subsection (a) of section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001(a)), and includes an institution 
        described in subsection (b) of that section.
    (f) Authorization of Appropriations.--
            (1) NASA.--There are authorized to be appropriated to the 
        Administrator of the National Aeronautics and Space 
        Administration such sums as may be necessary for fiscal year 
        2004 to carry out this section.
            (2) FAA.--There are authorized to be appropriated to the 
        Administrator of the Federal Aviation Administration such sums 
        as may be necessary for fiscal year 2004 to carry out this 
        section.
    (g) Report, Budget, and Plan.--Within 180 days after the date of 
enactment of this Act, the Administrators jointly shall submit to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure a 
report setting forth--
            (1) recommendations as to whether the program authorized by 
        this section should be extended for multiple years;
            (2) a budget for such a multi-year program; and
            (3) a plan for conducting such a program.

SEC. 642. SCHOLARSHIPS FOR SERVICE.

    (a) In General.--The Administrator of the National Aeronautics and 
Space Administration and the Administrator of the Federal Aviation 
Administration shall develop a joint student loan program for fulltime 
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.
    (b) Internships.--The Administrators may provide temporary 
internships to such students.
    (c) Authorization of Appropriations.--
            (1) NASA.--There are authorized to be appropriated to the 
        Administrator of the National Aeronautics and Space 
        Administration such sums as may be necessary for fiscal year 
        2004 to carry out this section.
            (2) FAA.--There are authorized to be appropriated to the 
        Administrator of the Federal Aviation Administration such sums 
        as may be necessary for fiscal year 2004 to carry out this 
        section.
    (g) Report, Budget, and Plan.--Within 180 days after the date of 
enactment of this Act, the Administrators jointly shall submit to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure a 
report setting forth--
            (1) recommendations as to whether the program authorized by 
        this section should be extended for multiple years;
            (2) a budget for such a multi-year program; and
            (3) a plan for conducting such a program.

         Subtitle C--FAA Research, Engineering, and Development

SEC. 661. RESEARCH PROGRAM TO IMPROVE AIRFIELD PAVEMENTS.

    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 rigid concrete airfield 
pavements to aid in the development of safer, more cost-effective, and 
more durable airfield pavements. The Administrator may use grants or 
cooperative agreements in carrying out this section. 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. 662. 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.

SEC. 663. 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 are authorized to be 
appropriated to the Administrator of the Federal Aviation 
Administration $500,000 for fiscal year 2004 to carry out this section.

SEC. 664. CABIN AIR QUALITY RESEARCH PROGRAM.

    In accordance with the recommendation of the National Academy of 
Sciences in its report entitled ``The Airliner Cabin Environment and 
the Health of Passengers and Crew'', the Federal Aviation 
Administration shall establish a research program to address questions 
about improving cabin air quality of aircraft, including methods to 
limit airborne diseases.

SEC. 665. INTERNATIONAL ROLE OF THE FAA.

    Section 40101(d) is amended by adding at the end the following:
            ``(8) 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 to promote and achieve global improvements in the 
        safety, efficiency, and environmental effect of air travel.''.

SEC. 666. FAA REPORT ON OTHER NATIONS' SAFETY AND TECHNOLOGICAL 
              ADVANCEMENTS.

    The Administrator of the Federal Aviation Administration shall 
review aviation and aeronautical safety, and research funding and 
technological actions in other countries. The Administrator shall 
submit a report to the Committee on Science of the House of 
Representatives and to the Committee on Commerce, Science, and 
Transportation of the Senate, together with any recommendations as to 
how such activities might be utilized in the United States.

SEC. 667. 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. 668. PILOT PROGRAM TO PROVIDE INCENTIVES FOR DEVELOPMENT OF NEW 
              TECHNOLOGIES.

    (a) In General.--The Administrator of the Federal Aviation 
Administration may conduct a limited 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 take-offs and landings.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator $500,000 for fiscal year 2004.

SEC. 669. 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, including the use of 
polymeric composites in large transport aircraft. 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 are authorized to be 
appropriated to the Administrator $500,000 for fiscal year 2004 to 
carry out this section.

SEC. 670. FAA CERTIFICATION OF DESIGN ORGANIZATIONS.

    (a) General Authority To Issue Certificates.--Section 44702(a) is 
amended by inserting ``design organization certificates,'' after 
``airman certificates,''.
    (b) Design Organization Certificates.--
            (1) In general.--Section 44704 is amended--
                    (A) by striking the section heading and inserting 
                the following:
``Sec.  44704. Design organization certificates, type certificates, 
              production certificates, and airworthiness 
certificates'' ;
                    (B) by redesignating subsections (a) through (d) as 
                subsections (b) through (e);
                    (C) by inserting before subsection (b) the 
                following:
    ``(a) Design Organization Certificates.--
            ``(1) Plan.--Within 3 years after the date of enactment of 
        the Aviation Investment and Revitalization Vision Act, the 
        Administrator of the Federal Aviation Administration shall 
        submit a plan to the Senate Committee on Commerce, Science, and 
        Transportation and the House of Representatives Committee on 
        Transportation and Infrastructure for the development and 
        oversight of a system for certification of design organizations 
        under paragraph (2) that ensures that the system meets the 
        highest standards of safety.
            ``(2) Implementation of plan.--Within 5 years after the 
        date of enactment of the Aviation Investment and Revitalization 
        Vision Act, the Administrator of the Federal Aviation 
        Administration may commence the issuance of design organization 
        certificates under paragraph (3) to authorize design 
        organizations 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.
            ``(3) Issuance of certificates.--On receiving an 
        application for a design organization certificate, the 
        Administrator shall examine and rate the design organization in 
        accordance with the regulations prescribed by the Administrator 
        to determine that 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 
        that section. The Administrator shall include in a design 
        organization certificate terms required in the interest of 
        safety.
            ``(4) No effect on power of revocation.--Nothing in this 
        subsection affects the authority of the Secretary of 
        Transportation to revoke a certificate.'';
                    (D) by striking subsection (b), as redesignated, 
                and inserting the following:
    ``(b) Type Certificates.--
            ``(1) In general.--The Administrator may issue a type 
        certificate for an aircraft, aircraft engine, or propeller, or 
        for an appliance specified under paragraph (2)(A) of this 
        subsection--
                    ``(A) when the Administrator finds that the 
                aircraft, aircraft engine, or propeller, or appliance 
                is properly designed and manufactured, performs 
                properly, and meets the regulations and minimum 
                standards prescribed under section 44701(a) of this 
                title; or
                    ``(B) based on a certification of compliance made 
                by a design organization certificated under subsection 
                (a).
            ``(2) Investigation and hearing.--On receiving an 
        application for a type certificate, the Administrator shall 
        investigate the application and may conduct a hearing. The 
        Administrator shall make, or require the applicant to make, 
        tests the Administrator considers necessary in the interest of 
        safety.''.
    (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) Chapter analysis.--The chapter analysis for chapter 447 
        is amended by striking the item relating to section 44704 and 
        inserting the following:

``44704. Design organization certificates, type certificates, 
                            production certificates, and airworthiness 
                            certificates.''.
            (2) Cross reference.--Section 44715(a)(3) is amended by 
        striking ``44704(a)'' and inserting ``44704(b)''.

SEC. 671. REPORT ON LONG TERM ENVIRONMENTAL IMPROVEMENTS.

    (a) In General.--The Administrator of the Federal Aviation 
Administration, in consultation with the Administrator of the National 
Aeronautics and Space Administration and the head of the Department of 
Transportation's Office of Aerospace and Aviation Liaison, 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 combuster 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 Administrator 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 are authorized to be 
appropriated to the Administrator of the Federal Aviation 
Administration $500,000 for fiscal year 2004 to carry out this section.




                                                        Calendar No. 83

108th CONGRESS

  1st Session

                                 S. 824

                          [Report No. 108-41]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                              May 2, 2003

                       Reported with an amendment