[Congressional Record Volume 149, Number 87 (Friday, June 13, 2003)]
[Senate]
[Pages S7884-S7902]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           AVIATION INVESTMENT AND REVITALIZATION VISION ACT

  (On Thursday, June 12, 2003, the Senate passed H.R. 2115, as 
follows:)

       Resolved, That the bill from the House of Representatives 
     (H.R. 2115) entitled ``An Act to amend title 49, United 
     States Code, to reauthorize programs for the Federal Aviation 
     Administration, and for other purposes.'', do pass with the 
     following amendment:
       Strike out all after the enacting clause and insert:

     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.
Sec. 108. Whistle-blower protection under Acquisition Management 
              System.

                     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.
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.
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.
Sec. 217. Share of airport project costs.
Sec. 218. Pilot program for purchase of airport development rights.
Sec. 219. Gary/Chicago Airport funding.
Sec. 220. Civil penalty for closure of an airport without providing 
              sufficient notice.
Sec. 221. Anchorage air traffic control.

                 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.
Sec. 305. Location of shuttle service at Ronald Reagan Washington 
              National Airport.
Sec. 306. Air carriers required to honor tickets for suspended service.

    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.
Sec. 355. One-year extension of EAS eligibility for communities 
              terminated in 2003 due to decreased air travel.

  Subtitle C--Financial Improvement Effort and Executive Compensation 
                                 Report

Sec. 371. GAO report on airlines actions to improve finances and on 
              executive compensation.

                      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.
Sec. 405. Arming cargo pilots against terrorism.
Sec. 406. General aviation and air charters.
Sec. 407. Air defense identification zone.
Sec. 408. Report on passenger prescreening program.
Sec. 409. Removal of cap on TSA staffing level.
Sec. 410. Foreign repair station safety and security.

                         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. Air transportation oversight system plan.
Sec. 514. National small community air service development Ombudsman.
Sec. 515. National commission on small community air service.
Sec. 516. Training certification for cabin crew.
Sec. 517. Aircraft manufacturer insurance.
Sec. 518. Ground-based precision navigational aids.
Sec. 519. Standby power efficiency program.
Sec. 520. Certain interim and final rules.
Sec. 521. Air fares for members of armed forces.
Sec. 522. Modification of requirements regarding training to operate 
              aircraft.
Sec. 523. Exemption for Jackson Hole Airport.
Sec. 524. Distance requirement applicable to eligibility for essential 
              air service subsidies.
Sec. 525. Reimbursement for losses incurred by general aviation 
              entities.
Sec. 526. Recommendations concerning travel agents.
Sec. 527. Pass-through of refunded passenger security fees to code-
              share partners.
Sec. 528. Air carrier citizenship.
Sec. 529. United States presence in global air cargo industry.

                   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.
Sec. 624. Transfer of certain air traffic control functions prohibited.

                     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. Air quality in aircraft cabins.
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 VII--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
                               AUTHORITY

Sec. 701. Extension of expenditure authority.

               TITLE I--REAUTHORIZATIONS; FAA MANAGEMENT

     SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

       (a) Authorization of Appropriations.--Section 48103 is 
     amended--
       (1) by inserting ``(a) In General.--'' before ``The'';
       (2) by striking ``and'' in paragraph (4);
       (3) by striking ``2003.'' in paragraph (5) and inserting 
     ``2003;'';
       (4) by inserting after paragraph (5) the following:

[[Page S7885]]

       ``(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.

[[Page S7886]]

       ``(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, shall be compensated at a 
     rate of $25,000 per year.
       ``(B) Staff.--The chair 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 chair 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 chair 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 chair 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.''.

     SEC. 108. WHISTLE-BLOWER PROTECTION UNDER ACQUISITION 
                   MANAGEMENT SYSTEM.

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

                     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

[[Page S7887]]

     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''.

[[Page S7888]]

     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.

       (a) In General.--Within 90 days after the date of enactment 
     of this Act, the Secretary of Transportation shall provide to 
     the Senate Committee on Commerce, Science, and 
     Transportation, and to the House of Representatives Committee 
     on Transportation and Infrastructure--
       (1) 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
       (2) a list of options for expanding capacity at the 8 
     airports on the list at which the most severe delays are 
     occurring.
       (b) 2-year Update.--The Secretary shall provide updated 
     lists under subsection (a) to the Committees 2 years after 
     the date of enactment of this Act.
       (c) Delisting of Projects.--The Secretary shall remove a 
     project from the list provided to the Committees under this 
     section 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

[[Page S7889]]

       (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 nonhub 
     airport (as defined in section 41762(11) 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.

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

     SEC. 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)(3)(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.''.
       (e) Terminal Development Costs.--Section 47119(a)(1)(C) is 
     amended by striking ``3 years'' and inserting ``1 year''.

     SEC. 217. SHARE OF AIRPORT PROJECT COSTS.

       (a) In General.--Section 47109 of title 49, United States 
     Code, is amended by redesignating

[[Page S7890]]

     subsection (c) as subsection (d) and inserting after 
     subsection (b) the following:
       ``(c) Grandfather Rule.--
       ``(1) In general.--In the case of any project approved 
     after September 30, 2001, at an airport that has less than 
     .25 percent of the total number of passenger boardings at all 
     commercial service airports, and that is located in a State 
     containing unappropriated and unreserved public lands and 
     nontaxable Indian lands (individual and tribal) of more than 
     5 percent of the total area of all lands in the State, the 
     Government's share of allowable costs of the project shall be 
     increased by the same ratio as the basic share of allowable 
     costs of a project divided into the increased (Public Lands 
     States) share of allowable costs of a project as shown on 
     documents of the Federal Aviation Administration dated August 
     3, 1979, at airports for which the general share was 80 
     percent on August 3, 1979. This subsection shall apply only 
     if--
       ``(A) the State contained unappropriated and unreserved 
     public lands and nontaxable Indian lands of more than 5 
     percent of the total area of all lands in the State on August 
     3, 1979; and
       ``(B) the application under subsection (b), does not 
     increase the Government's share of allowable costs of the 
     project
       ``(2) Limitation.--The Government's share of allowable 
     project costs determined under this subsection shall not 
     exceed the lesser of 93.75 percent or the highest percentage 
     Government share applicable to any project in any State under 
     subsection (b).''.
       (b) Conforming Amendment.--Subsection (a) of Section 47109, 
     title 49, United States Code, is amended by striking ``Except 
     as provided in subsection (b)'', and inserting in lieu 
     thereof ``Except as provided in subsection (b) or subsection 
     (c)''.

     SEC. 218. PILOT PROGRAM FOR PURCHASE OF AIRPORT DEVELOPMENT 
                   RIGHTS.

       (a) In General.--Chapter 471 is amended by adding at the 
     end the following:

     ``Sec. 47141. Pilot program for purchase of airport 
       development rights.

       ``(a) In General.--The Secretary of Transportation shall 
     establish a pilot program to support the purchase, by a State 
     or political subdivision of a State, of development rights 
     associated with, or directly affecting the use of, privately 
     owned public use airports located in that State. Under the 
     program, the Secretary may make a grant to a State or 
     political subdivision of a State from funds apportioned under 
     section 47114 for the purchase of such rights.
       ``(b) Grant Requirements.--
       ``(1) In general.--The Secretary may not make a grant under 
     subsection (a) unless the grant is made--
       ``(A) to enable the State or political subdivision to 
     purchase development rights in order to ensure that the 
     airport property will continue to be available for use as a 
     public airport; and
       ``(B) subject to a requirement that the State or political 
     subdivision acquire an easement or other appropriate covenant 
     requiring that the airport shall remain a public use airport 
     in perpetuity.
       ``(2) Matching requirement.--The amount of a grant under 
     the program may not exceed 90 percent of the costs of 
     acquiring the development rights.
       ``(c) Grant Standards.--The Secretary shall prescribe 
     standards for grants under subsection (a), including--
       ``(1) grant application and approval procedures; and
       ``(2) requirements for the content of the instrument 
     recording the purchase of the development rights.
       ``(d) Release of Purchased Rights and Covenant.--Any 
     development rights purchased under the program shall remain 
     the property of the State or political subdivision unless the 
     Secretary approves the transfer or disposal of the 
     development rights after making a determination that the 
     transfer or disposal of that right is in the public interest.
       ``(e) Limitation.--The Secretary may not make a grant under 
     the pilot program for the purchase of development rights at 
     more than 10 airports''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     471 is amended by inserting after the item relating to 
     section 47140 the following:

``47141. Pilot program for purchase of airport development rights''.

     SEC. 219. GARY/CHICAGO AIRPORT FUNDING.

       The Administrator of the Federal Aviation Administration 
     shall, for purposes of chapter 471 of title 49, United States 
     Code, give priority consideration to a letter of intent 
     application for funding submitted by the City of Gary, 
     Indiana, or the State of Indiana, for the extension of the 
     main runway at the Gary/Chicago Airport. The letter of intent 
     application shall be considered upon completion of the 
     environmental impact statement and benefit cost analysis in 
     accordance with Federal Aviation Administration requirements. 
     The Administrator shall consider the letter of intent 
     application not later than 90 days after receiving it from 
     the applicant.

     SEC. 220. CIVIL PENALTY FOR CLOSURE OF AN AIRPORT WITHOUT 
                   PROVIDING SUFFICIENT NOTICE.

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

     ``SEC. 46319. CLOSURE OF AN AIRPORT WITHOUT PROVIDING 
                   SUFFICIENT NOTICE.

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

``46319. Closure of an airport without providing sufficient note.''.

     SEC. 221. ANCHORAGE AIR TRAFFIC CONTROL.

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

                 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

[[Page S7891]]

     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,'';
       (3) by striking ``2003'' and inserting ``2003, and 
     $27,500,000 for each of fiscal years 2004, 2005, and 2006''; 
     and
       (4) by striking ``section.'' and inserting ``section, not 
     more than $275,000 per year of which may be used for 
     administrative costs in fiscal years 2004 through 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, 
     nor combination thereof may participate in the program in 
     support of the same project more than once, but any 
     community, consortia of communities, or combination thereof 
     may apply, subsequent to such participation, to participate 
     in the program in support of a different project.

     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).''.

     SEC. 305. LOCATION OF SHUTTLE SERVICE AT RONALD REAGAN 
                   WASHINGTON NATIONAL AIRPORT.

       The Airports Authority (as defined in section 49103(1) of 
     title 49, United States Code) shall, in conjunction with the 
     Department of Transportation, conduct a study on the 
     feasibility of housing the gates used by all air carriers 
     providing shuttle service from Ronald Reagan Washington 
     National Airport in the same terminal.

     SEC. 306. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR 
                   SUSPENDED SERVICE.

       (a) In General.--Section 145(a) of the Aviation and 
     Transportation Security Act of 2001 (49 U.S.C. 40101 note) is 
     amended by adding at the end the following: ``The Secretary 
     of Transportation shall give favorable consideration to 
     waiving the terms and conditions established by this section, 
     including those set forth in the guidance provided by the 
     Department in notices, dated August 8, 2002, November 14, 
     2002, and January 23, 2003, in cases where remaining carriers 
     operate additional flights to accommodate passengers whose 
     service was suspended, interrupted, or discontinued under 
     circumstances described in the preceding sentence over routes 
     located in isolated areas that are unusually dependent on air 
     transportation.''.
       (b) Extension.--Section 145(c) of such Act (49 U.S.C. 40101 
     note) is amended by striking ``more than'' and all that 
     follows through ``after'' and inserting ``more than 36 months 
     after''.

    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 communities that 
     receive subsidized service by an air carrier under section 
     41733 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 
     point that receives subsidized service by an air carrier 
     under section 41733 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), subject to 
     the provisions of section 332 of the Department of 
     Transportation and Related Agencies Appropriations Act, 2000 
     (49 U.S.C. 41731 note).
       ``(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).

[[Page S7892]]

     ``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 2006, to carry out this subchapter, 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. Any 
     community that participates in a pilot program under this 
     subparagraph is deemed to have waived the minimum service 
     requirements under section 41732(b) for purposes of its 
     participation in that pilot program.
       ``(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.
       ``(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) Tracking Service.--The Secretary shall require 
     carriers providing subsidy for service under section 41733 to 
     track changes in services, including on-time arrivals and 
     departures, on such subsidized routes, and to report such 
     information to the Secretary on a semi-annual basis in such 
     form as the Secretary may require.
       ``(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 annual total unit cost increase (but not increases 
     in individual unit costs) of 10 percent or more in relation 
     to the unit rates used to construct the subsidy rate, based 
     on the carrier's internal audit of its financial statements.
       (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''.

     SEC. 355. ONE-YEAR EXTENSION OF EAS ELIGIBILITY FOR 
                   COMMUNITIES TERMINATED IN 2003 DUE TO DECREASED 
                   AIR TRAVEL.

       Notwithstanding the rate of subsidy limitation in section 
     332 of the Department of Transportation and Related Agencies 
     Appropriations Act, 2000, the Secretary of Transportation may 
     not terminate an essential air service subsidy provided under 
     chapter 417 of title 49, United States Code, before the end 
     of calendar year 2004 for air service to a community--
       (1) whose calendar year ridership for 2000 was sufficient 
     to keep the per passenger subsidy below that limitation; and
       (2) that has received notice that its subsidy will be 
     terminated during calendar year 2003 because decreased 
     ridership has caused the subsidy to exceed that limitation.

  Subtitle C--Financial Improvement Effort and Executive Compensation 
                                 Report

     SEC. 371. GAO REPORT ON AIRLINES ACTIONS TO IMPROVE FINANCES 
                   AND ON EXECUTIVE COMPENSATION.

       (a) Finding.--The Congress finds that the United States 
     government has by law provided substantial financial 
     assistance to United States commercial airlines in the form 
     of war risk insurance and reinsurance and other economic 
     benefits and has imposed substantial economic and regulatory 
     burdens on those airlines. In order to determine the economic 
     viability of the domestic commercial airline industry and to 
     evaluate the need for additional measures or the modification 
     of existing laws, the Congress needs more frequent 
     information and independently verified information about the 
     financial condition of these airlines.
       (b) Semiannual Reports.--The Comptroller General shall 
     prepare a semiannual report to the Congress--
       (1) analyzing measures being taken by air carriers engaged 
     in air transportation and intrastate air transportation (as 
     such terms are used in subtitle VII of title 49, United 
     States Code) to reduce costs and to improve their earnings 
     and profits and balance sheets; and
       (2) stating--
       (A) the total compensation (as defined in section 104(b) of 
     the Air Transportation Safety and System Stabilization Act 
     (49 U.S.C. 40101 note)) paid by the air carrier to each 
     officer or employee of that air carrier to whom that section 
     applies for the period to which the report relates; and
       (B) the terms and value (determined on the basis of the 
     closing price of the stock on the last business day of the 
     period to which the report relates) of any stock options 
     awarded to such officer during that period.
       (c) GAO Authority.--In order to compile the reports 
     required by subsection (b), the Comptroller General, or any 
     of the Comptroller General's duly authorized representatives, 
     shall have access for the purpose of audit and examination to 
     any books, accounts, documents, papers, and records of such 
     air carriers that relate to the information required to 
     compile the reports. The Comptroller General shall submit 
     with each such report a certification as to whether the 
     Comptroller General has had access to sufficient information 
     to make informed judgments on the matters covered by the 
     report.
       (d) Reports to Congress.--The Comptroller General shall 
     transmit the compilation of reports required by subsection 
     (c) to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure.

                      TITLE IV--AVIATION SECURITY

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

       (a) In General.--The Secretary of Homeland Security, in 
     consultation with representatives of the airport community, 
     shall study the effectiveness of the aviation security 
     system, including the air marshal program, hardening of 
     cockpit doors, and security screening of passengers, checked 
     baggage, and cargo.
       (b) Report.--The Secretary shall transmit a report of the 
     Secretary's findings and conclusions together with any 
     recommendations, including legislative recommendations, the 
     Secretary may have for improving the effectiveness of 
     aviation security to the Senate Committee on Commerce, 
     Science, and Transportation and the

[[Page S7893]]

     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 may be established within the 
     Department of Homeland Security a fund to be known as the 
     Aviation Security Capital Fund. There are authorized to be 
     appropriated to the Fund up 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---
       (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 nonhub airports; and-
       (4) 25 percent may be distributed at the Secretary's 
     discretion.
       (b) Purpose.--Amounts in the Fund shall be available to the 
     Secretary of Homeland 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 enplanements at each airport in 
     the category bears to the total passenger enplanements at all 
     airports in that category.
       (d) Letters of Intent.--The Secretary of Homeland Security, 
     or his delegate, may execute letters of intent to commit 
     funding to airport sponsors from the Fund.
       (e) Conforming Amendment.--Section 44940(a)(1) of title 49, 
     United States Code, is amended by adding at the end the 
     following:
       ``(H) The costs of security-related capital improvements at 
     airports.''.
       (f) 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 
     308(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.''.

     SEC. 405. ARMING CARGO PILOTS AGAINST TERRORISM.

       (a) Short Title.--This section may be cited as the ``Arming 
     Cargo Pilots Against Terrorism Act''.
       (b) Findings.--Congress makes the following findings:
       (1) During the 107th Congress, both the Senate and the 
     House of Representatives overwhelmingly passed measures that 
     would have armed pilots of cargo aircraft.
       (2) Cargo aircraft do not have Federal air marshals, 
     trained cabin crew, or determined passengers to subdue 
     terrorists.
       (3) Cockpit doors on cargo aircraft, if present at all, 
     largely do not meet the security standards required for 
     commercial passenger aircraft.
       (4) Cargo aircraft vary in size and many are larger and 
     carry larger amounts of fuel than the aircraft hijacked on 
     September 11, 2001.
       (5) Aircraft cargo frequently contains hazardous material 
     and can contain deadly biological and chemical agents and 
     quantities of agents that cause communicable diseases.
       (6) Approximately 12,000 of the nation's 90,000 commercial 
     pilots serve as pilots and flight engineers on cargo 
     aircraft.
       (7) There are approximately 2,000 cargo flights per day in 
     the United States, many of which are loaded with fuel for 
     outbound international travel or are inbound from foreign 
     airports not secured by the Transportation Security 
     Administration.
       (8) Aircraft transporting cargo pose a serious risk as 
     potential terrorist targets that could be used as weapons of 
     mass destruction.
       (9) Pilots of cargo aircraft deserve the same ability to 
     protect themselves and the aircraft they pilot as other 
     commercial airline pilots.
       (10) Permitting pilots of cargo aircraft to carry firearms 
     creates an important last line of defense against a terrorist 
     effort to commandeer a cargo aircraft.
       (c) Sense of Congress.--It is the sense of Congress that 
     members of a flight deck crew of a cargo aircraft should be 
     armed with a firearm and taser to defend the cargo aircraft 
     against an attack by terrorists that could result in the use 
     of the aircraft as a weapon of mass destruction or for other 
     terrorist purposes.
       (d) Arming Cargo Pilots Against Terrorism.--Section 44921 
     of title 49, United States Code, is amended--
       (1) in subsection (a), by striking ``passenger'' each place 
     that it appears; and
       (2) in subsection (k)--
       (A) in paragraph (2)--
       (i) by striking ``or,'' and all that follows; and
       (ii) by inserting ``or any other flight deck crew 
     member.''; and
       (B) by adding at the end the following new paragraph:
       ``(3) All-cargo air transportation.--For the purposes of 
     this section, the term air transportation includes all-cargo 
     air transportation.''.
       (e) Time for Implementation.--The training of pilots as 
     Federal flight deck officers required in the amendments made 
     by subsection (d) shall begin as soon as practicable and no 
     later than 90 days after the date of enactment of this Act.
       (f) Effect on Other Laws.--The requirements of subsection 
     (e) shall have no effect on the deadlines for implementation 
     contained in section 44921 of title 49, United States Code, 
     as in effect on the day before the date of enactment of this 
     Act.

     SEC. 406. GENERAL AVIATION AND AIR CHARTERS.

       Section 132(a) of the Aviation and Transportation Security 
     Act (49 U.S.C. 44944 note) is amended by striking ``12,500 
     pounds or more'' and inserting ``more than 12,500 pounds''.

     SEC. 407. AIR DEFENSE IDENTIFICATION ZONE.

       (a) In General.--If the Administrator of the Federal 
     Aviation Administration establishes an Air Defense 
     Identification Zone (in this section referred as an 
     ``ADIZ''), the Administrator shall, not later than 60 days 
     after the date of establishing the ADIZ, transmit to the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives and the Committee on Commerce, Science, 
     and Transportation of the Senate, a report containing an 
     explanation of the need for the ADIZ. The Administrator shall 
     provide the Committees an updated report every 60 days until 
     the establishment of the ADIZ is rescinded. The reports and 
     updates shall be transmitted in classified form.
       (b) Existing ADIZ.--If an ADIZ is in effect on the date of 
     enactment of this Act, the Administrator shall transmit an 
     initial report under subsection (a) to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate not later than 30 days after the 
     date of enactment of this Act.
       (c) Reporting Requirements.--If a report required under 
     subsection (a) or (b) indicates that the ADIZ is to be 
     continued, the Administrator shall outline changes in 
     procedures and requirements to improve operational efficiency 
     and minimize the operational impacts of the ADIZ on pilots 
     and air traffic controllers.
       (d) Definition.--In this section, the terms ``Air Defense 
     Identification Zone'' and ``ADIZ'' mean a zone established by 
     the Administrator with respect to airspace under 18,000 feet 
     in approximately a 15 to 38 mile radius around Washington, 
     District of Columbia, for which security measures are 
     extended beyond the existing 15-mile-no-fly zone around 
     Washington and in which general aviation aircraft are 
     required to adhere to certain procedures issued by the 
     Administrator.

     SEC. 408. REPORT ON PASSENGER PRESCREENING PROGRAM.

       (a) In General.--Within 90 days after the date of enactment 
     of this Act, the Secretary of Homeland Security, after 
     consultation with the Attorney General, shall submit a report 
     in writing to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure on the potential impact of 
     the Transportation Security Administration's proposed 
     Computer Assisted Passenger Prescreening system, commonly 
     known as CAPPS II, on the privacy and civil liberties of 
     United States citizens.
       (b) Specific Issues To Be Addressed.--The report shall 
     address the following:
       (1) Whether and for what period of time data gathered on 
     individual travelers will be retained, who will have access 
     to such data, and who will make decisions concerning access 
     to such data.
       (2) How the Transportation Security Administration will 
     treat the scores assigned to individual travelers to measure 
     the likelihood they may pose a security threat, including how 
     long such scores will be retained and whether and under what 
     circumstances they may be shared with other governmental, 
     nongovernmental, or commercial entities.
       (3) The role airlines and outside vendors or contractors 
     will have in implementing and operating the system, and to 
     what extent will they have access, or the means to obtain 
     access, to data, scores, or other information generated by 
     the system.
       (4) The safeguards that will be implemented to ensure that 
     data, scores, or other information

[[Page S7894]]

     generated by the system will be used only as officially 
     intended.
       (5) The procedures that will be implemented to mitigate the 
     effect of any errors, and what procedural recourse will be 
     available to passengers who believe the system has wrongly 
     barred them from taking flights.
       (6) The oversight procedures that will be implemented to 
     ensure that, on an ongoing basis, privacy and civil liberties 
     issues will continue to be considered and addressed with high 
     priority as the system is installed, operated and updated.

     SEC. 409. REMOVAL OF CAP ON TSA STAFFING LEVEL.

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

     SEC. 410. FOREIGN REPAIR STATION SAFETY AND SECURITY.

       (a) Definitions.--In this section:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Federal Aviation Administration.
       (2) Domestic repair station.--The term ``domestic repair 
     station'' means a repair station or shop that--
       (A) is described in section 44707(2) of title 49, United 
     States Code; and
       (B) is located in the United States.
       (3) Foreign repair station.--The term ``foreign repair 
     station'' means a repair station or shop that--
       (A) is described in section 44707(2) of title 49, United 
     States Code; and
       (B) is located outside of the United States.
       (4) Under secretary.--The term ``Under Secretary'' means 
     the Under Secretary for Border and Transportation Security of 
     the Department of Homeland Security.
       (b) Applicability of Standards.--Within 180 days after the 
     date of enactment of this Act, the Administrator shall issue 
     regulations to ensure that foreign repair stations meet the 
     same level of safety required of domestic repair stations.
       (c) Specific Standards.--In carrying out subsection (b), 
     the Administrator shall, at a minimum, specifically ensure 
     that foreign repair stations, as a condition of being 
     certified to work on United States registered aircraft--
       (1) institute a program of drug and alcohol testing of its 
     employees working on United States registered aircraft and 
     that such a program provides an equivalent level of safety 
     achieved by the drug and alcohol testing requirements that 
     workers are subject to at domestic repair stations;
       (2) agree to be subject to the same type and level of 
     inspection by the Federal Aviation Administration as domestic 
     repair stations and that such inspections occur without prior 
     notice to the country in which the station is located; and
       (3) follow the security procedures established under 
     subsection (d).
       (d) Security Audits.--
       (1) In general.--To ensure the security of maintenance and 
     repair work conducted on United States aircraft and 
     components at foreign repair stations, the Under Secretary, 
     in consultation with the Administrator, shall complete a 
     security review and audit of foreign repair stations 
     certified by the Administrator under part 145 of title 14, 
     Code of Federal Regulations. The review shall be completed 
     not later than 180 days after the date on which the Under 
     Secretary issues regulations under paragraph (6).
       (2) Addressing security concerns.--The Under Secretary 
     shall require a foreign repair station to address the 
     security issues and vulnerabilities identified in a security 
     audit conducted under paragraph (1) within 90 days of 
     providing notice to the repair station of the security issues 
     and vulnerabilities identified.
       (3) Suspensions and revocations of certificates.--
       (A) Failure to carry out effective security measures.--If 
     the Under Secretary determines as a result of a security 
     audit that a foreign repair station does not maintain and 
     carry out effective security measures or if a foreign repair 
     station does not address the security issues and 
     vulnerabilities as required under subsection (d)(2), the 
     Under Secretary shall notify the Administrator of the 
     determination. Upon receipt of the determination, the 
     Administrator shall suspend the certification of the repair 
     station until such time as the Under Secretary determines 
     that the repair station maintains and carries out effective 
     security measures and has addressed the security issues 
     identified in the audit, and transmits the determination to 
     the Administrator.
       (B) Immediate security risk.--If the Under Secretary 
     determines that a foreign repair station poses an immediate 
     security risk, the Under Secretary shall notify the 
     Administrator of the determination. Upon receipt of the 
     determination, the Administrator shall revoke the 
     certification of the repair station.
       (4) Failure to meet audit deadline.--If the security audits 
     required by paragraph (1) are not completed on or before the 
     date that is 180 days after the date on which the Under 
     Secretary issues regulations under paragraph (6), the 
     Administrator may not certify, or renew the certification of, 
     any foreign repair station until such audits are completed.
       (5) Priority for audits.--In conducting the audits 
     described in paragraph (1), the Under Secretary and the 
     Administrator shall give priority to foreign repair stations 
     located in countries identified by the United States 
     Government as posing the most significant security risks.
       (6) Regulations.--Not later than 180 days after the date of 
     enactment of this section, the Under Secretary, in 
     consultation with the Administrator, shall issue final 
     regulations to ensure the security of foreign and domestic 
     repair stations. If final regulations are not issued within 
     180 days of the date of enactment of this Act, the 
     Administrator may not certify, or renew the certification of, 
     any foreign repair station until such regulations have been 
     issued.

                         TITLE V--MISCELLANEOUS

     SEC. 501. EXTENSION OF WAR RISK INSURANCE 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 subchapter III of chapter 5 of 
     title 40, United States Code.''.
       (2) Section 40110(d)(1) is amended by striking ``implement, 
     not later than January 1, 1996,'' and inserting 
     ``implement''.

[[Page S7895]]

       (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:
       ``(h) 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

[[Page S7896]]

     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. 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. 514. 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.''.

[[Page S7897]]

     SEC. 515. 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 Secretary shall designate, from among 
     the individuals appointed under subsection (b)(1), an 
     individual to serve as Chairperson of the Commission.
       (d) Duties.--
       (1) Study.--The Commission shall undertake a study of--
       (A) the challenges faced by small communities in the United 
     States with respect to retaining and enhancing their 
     scheduled commercial air service; and
       (B) whether the existing Federal programs charged with 
     helping small communities are adequate for them to retain and 
     enhance their existing air service.
       (2) Essential air service communities.--In conducting the 
     study, the Commission shall pay particular attention to the 
     state of scheduled commercial air service in communities 
     currently served by the Essential Air Service program.
       (e) Recommendations.--Based on the results of the study 
     under subsection (d), the Commission shall make such 
     recommendations as it considers necessary to--
       (1) improve the state of scheduled commercial air service 
     at small communities in the United States, especially 
     communities described in subsection (d)(2); and
       (2) improve the ability of small communities to retain and 
     enhance their existing air service.
       (f) Report.--Not later than 6 months after the date on 
     which initial appointments of members to the Commission are 
     completed, the Commission shall transmit to the President and 
     Congress a report on the activities of the Commission, 
     including recommendations made by the Commission under 
     subsection (e).
       (g) Commission Panels.--The Chairperson 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.
       (l) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation 
     $250,000 to be used to fund the Commission.

     SEC. 516. 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. 517. 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 aircraft 
     by an air carrier, 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 44303(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 aircraft by an 
     air carrier.''.

     SEC. 518. 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. 519. 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.

     SEC. 520. CERTAIN INTERIM AND FINAL RULES.

       Notwithstanding section 141(d)(1) of the Aviation and 
     Transportation Security Act (49 U.S.C. 44901 note), section 
     45301(b)(1)(B) of title 49, United States Code, as amended by 
     section 119(d) of that Act, is deemed to apply to, and to 
     have been in effect with respect to, the authority of the 
     Administrator of the Federal Aviation Administration with 
     respect to the Interim Final Rule and Final Rule issued by 
     the Administrator on May 30, 2000, and August 13, 2001, 
     respectively.

     SEC. 521. AIR FARES FOR MEMBERS OF ARMED FORCES.

       It is the sense of the Senate that each United States air 
     carrier should--
       (1) make every effort to allow active duty members of the 
     Armed Forces to purchase tickets, on a space-available basis, 
     for the lowest fares offered for the flights desired, without 
     regard to advance purchase requirements and other 
     restrictions; and
       (2) offer flexible terms that allow members of the Armed 
     Forces on active duty to purchase, modify, or cancel tickets 
     without time restrictions, fees, or penalties.

     SEC. 522. MODIFICATION OF REQUIREMENTS REGARDING TRAINING TO 
                   OPERATE AIRCRAFT.

       (a) In General.--Section 44939 of title 49, United States 
     Code, is amended to read as follows:

     ``Sec. 44939. Training to operate certain aircraft

       ``(a) In General.--
       ``(1) Waiting period.--A person subject to regulation under 
     this part may provide training in the United States in the 
     operation of an aircraft to an individual who is an alien (as 
     defined in section 101(a)(3) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(3))) or to any other 
     individual specified by the Under Secretary of Homeland 
     Security for Border and Transportation Security only if--

[[Page S7898]]

       ``(A) that person has notified the Under Secretary that the 
     individual has requested such training and furnished the 
     Under Secretary with that individual's identification in such 
     form as the Under Secretary may require; and
       ``(B) the Under Secretary has not directed, within 30 days 
     after being notified under subparagraph (A), that person not 
     to provide the requested training because the Under Secretary 
     has determined that the individual presents a risk to 
     aviation security or national security.
       ``(2) Notification-only individuals.--
       ``(A) In general.--The requirements of paragraph (1) shall 
     not apply to an alien individual who holds a visa issued 
     under title I of the Immigration and Nationality Act (8 
     U.S.C. 1101 et seq.) and who--
       ``(i) has earned a Federal Aviation Administration type 
     rating in an aircraft or has undergone type-specific 
     training, or
       ``(ii) holds a current pilot's license or foreign 
     equivalent commercial pilot's license that permits the person 
     to fly an aircraft with a maximum certificated takeoff weight 
     of more than 12,500 pounds as defined by the International 
     Civil Aviation Organization in Annex 1 to the Convention on 
     International Civil Aviation,
     if the person providing the training has notified the Under 
     Secretary that the individual has requested such training and 
     furnished the Under Secretary with that individual's visa 
     information.
       ``(B) Exception.--Subparagraph (A) does not apply to an 
     alien individual whose airman's certificate has been 
     suspended or revoked under procedures established by the 
     Under Secretary.
       ``(3) Expedited processing.--The waiting period under 
     paragraph (1) shall be expedited for an individual who--
       ``(A) has previously undergone a background records check 
     by the Foreign Terrorist Tracking Task Force;
       ``(B) is employed by a foreign air carrier certified under 
     part 129 of title 49, Code of Federal Regulations, that has a 
     TSA 1546 approved security program and who is undergoing 
     recurrent flight training;
       ``(C) is a foreign military pilot endorsed by the United 
     States Department of Defense for flight training; or
       ``(D) who has unescorted access to a secured area of an 
     airport designated under section 44936(a)(1)(A)(ii).
       ``(4) Investigation authority.--In order to determine 
     whether an individual requesting training described in 
     paragraph (1) presents a risk to aviation security or 
     national security the Under Secretary is authorized to use 
     the employment investigation authority provided by section 
     44936(a)(1)(A) for individuals applying for a position in 
     which the individual has unescorted access to a secured area 
     of an airport designated under section 44936(a)(1)(A)(ii).
       ``(5) Fee.--
       ``(A) In general.--The Under Secretary may assess a fee for 
     an investigation under this section, which may not exceed 
     $100 per individual (exclusive of the cost of transmitting 
     fingerprints collected at overseas facilities) during fiscal 
     years 2003 and 2004. For fiscal year 2005 and thereafter, the 
     Under Secretary may adjust the maximum amount of the fee to 
     reflect the costs of such an investigation.
       ``(B) Offset.--Notwithstanding section 3302 of title 31, 
     United States Code, any fee collected under this section--
       ``(i) shall be credited to the account in the Treasury from 
     which the expenses were incurred and shall be available to 
     the Under Secretary for those expenses; and
       ``(ii) shall remain available until expended.
       ``(b) Interruption of Training.--If the Under Secretary, 
     more than 30 days after receiving notification under 
     subsection (a)(1)(A) from a person providing training 
     described in subsection (a)(1) or at any time after receiving 
     notice from such a person under subsection (a)(2)(A), 
     determines that an individual receiving such training 
     presents a risk to aviation or national security, the Under 
     Secretary shall immediately notify the person providing the 
     training of the determination and that person shall 
     immediately terminate the training.
       ``(c) Covered Training.--For purposes of subsection (a), 
     the term -`training'--
       ``(1) includes in-flight training, training in a simulator, 
     and any other form or aspect of training; but
       ``(2) does not include classroom instruction (also known as 
     ground school training), which may be provided during the 30-
     day period described in subsection (a)(1)(B).
       ``(d) Interagency Cooperation.--The Attorney General, the 
     Director of Central Intelligence, and the Administrator of 
     the Federal Aviation Administration shall cooperate with the 
     Under Secretary in implementing this section.
       ``(e) Security Awareness Training for Employees.--The Under 
     Secretary shall require flight schools to conduct a security 
     awareness program for flight school employees, and for 
     certified instructors who provide instruction for the flight 
     school but who are not employees thereof, to increase their 
     awareness of suspicious circumstances and activities of 
     individuals enrolling in or attending flight school.''.
       (b) Procedures.--
       (1) In general.--Not later than 60 days after the date of 
     enactment of this Act, the Under Secretary of Homeland 
     Security for Border and Transportation Security shall 
     promulgate an interim final rule to implement section 44939 
     of title 49, United States Code, as amended by subsection 
     (a).
       (2) Use of overseas facilities.--In order to implement 
     section 44939 of title 49, United States Code, as amended by 
     subsection (a), United States Embassies and Consulates that 
     possess appropriate fingerprint collection equipment and 
     personnel certified to capture fingerprints shall provide 
     fingerprint services to aliens covered by that section if the 
     Under Secretary requires fingerprints in the administration 
     of that section, and shall transmit the fingerprints to the 
     Under Secretary or other agency designated by the Under 
     Secretary. The Attorney General and the Secretary of State 
     shall cooperate with the Under Secretary in carrying out this 
     paragraph.
       (3) Use of united states facilities.--If the Under 
     Secretary requires fingerprinting in the administration of 
     section 44939 of title 49, United States Code, the Under 
     Secretary may designate locations within the United States 
     that will provide fingerprinting services to individuals 
     covered by that section.
       (c) Effective Date.--The amendment made by subsection (a) 
     takes effect on the effective date of the interim final rule 
     required by subsection (b)(1).
       (d) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the Senate Committee on Commerce, Science, 
     and Transportation and the House of Representatives Committee 
     on Transportation and Infrastructure a report on the 
     effectiveness of the activities carried out under section 
     44939 of title 49, United States Code, in reducing risks to 
     aviation security and national security.

     SEC. 523. EXEMPTION FOR JACKSON HOLE AIRPORT.

       (a) In General.--Notwithstanding chapter 475 of title 49, 
     United States Code, or any other provision of law, if the 
     Board of the Jackson Hole Airport in Wyoming and the 
     Secretary of the Interior agree that Stage 3 aircraft 
     technology represents a prudent and feasible technological 
     advance which, if implemented at the Jackson Hole Airport, 
     will result in a reduction in noise at Grand Teton National 
     Park--
       (1) the Jackson Hole Airport may impose restrictions on, or 
     prohibit, the operation of Stage 2 aircraft weighing less 
     than 75,000 pounds, with reasonable exemptions for public 
     health and safety;
       (2) the notice, study, and comment provisions of subchapter 
     II of chapter 475 of title 49, United States Code, and part 
     161 of title 14, Code of Federal Regulations, shall not apply 
     to the imposition of the restrictions;
       (3) the imposition of the restrictions shall not affect the 
     Airport's eligibility to receive a grant under title 49, 
     United States Code; and
       (4) the restrictions shall not be deemed to be 
     unreasonable, discriminatory, a violation of the assurances 
     required by section 47107(a) of title 49, United States Code, 
     or an undue burden on interstate commerce.
       (b) Definitions.--In this section, the terms ``Stage 2 
     aircraft'' and ``Stage 3 aircraft'' have the same meaning as 
     those terms have in chapter 475 of title 49, United States 
     Code.

     SEC. 524. DISTANCE REQUIREMENT APPLICABLE TO ELIGIBILITY FOR 
                   ESSENTIAL AIR SERVICE SUBSIDIES.

       (a) Measurement of Highway Mileage for Purposes of 
     Determining Eligibility for Essential Air Service 
     Subsidies.--
       (1) Determination of eligibility.--Subchapter II of Chapter 
     417 of title 49, United States Code, is amended by adding at 
     the end the following new section:

     ``Sec. 41746. Distance requirement applicable to eligibility 
       for essential air service subsidies

       ``(a) In General.--The Secretary shall not provide 
     assistance under this subchapter with respect to a place in 
     the 48 contiguous States that--
       ``(1) is less than 70 highway miles from the nearest hub 
     airport; or
       ``(2) requires a rate of subsidy per passenger in excess of 
     $200, unless such place is greater than 210 highway miles 
     from the nearest hub airport.
       ``(b) Determination of Mileage.--For purposes of Lancaster, 
     Pennsylvania, the highway mileage between a place and the 
     nearest hub airport is the highway mileage of the most 
     commonly used route between the place and the hub airport. In 
     identifying such route, the Secretary shall--
       ``(1) promulgate by regulation a standard for calculating 
     the mileage between Lancaster, Pennsylvania and a hub 
     airport; and
       ``(2) identify the most commonly used route for a community 
     by--
       ``(A) consulting with the Governor of a State or the 
     Governor's designee; and
       ``(B) considering the certification of the Governor of a 
     State or the Governor's designee as to the most commonly used 
     route.''.
       (2) Conforming amendment.--The analysis for subchapter II 
     of chapter 417 of title 49, United States Code, is amended by 
     inserting after the item relating to section 41745 the 
     following new item:

  ``41746. Distance requirement applicable to eligibility for essential 
              air service subsidies.''.

       (b) Repeal.--The following provisions of law are repealed:
       (1) Section 332 of the Department of Transportation and 
     Related Agencies Appropriations Act, 2000 (49 U.S.C. 41731 
     note).
       (2) Section 205 of the Wendell H. Ford Aviation Investment 
     and Reform Act for the 21st Century (49 U.S.C. 41731 note).
       (3) Section 334 of the Department of Transportation and 
     Related Agencies Appropriations Act, 1999 (section 101(g) of 
     division A of the Omnibus Consolidated and Emergency 
     Supplemental Appropriations Act, 1999) (Public Law 105-277; 
     112 Stat. 2681-471).
       (c) Secretarial Review.--
       (1) Request for review.--Any community with respect to 
     which the Secretary has, between September 30, 1993, and the 
     date of the enactment of this Act, eliminated subsidies or 
     terminated subsidy eligibility under section 332 of the 
     Department of Transportation and Related Agencies 
     Appropriations Act, 2000 (49 U.S.C. 41731 note), section 205 
     of the Wendell H.

[[Page S7899]]

     Ford Aviation Investment and Reform Act for the 21st Century 
     (49 U.S.C. 41731 note), or any prior law of similar effect, 
     may request the Secretary to review such action.
       (2) Eligibility determination.--Not later than 60 days 
     after receiving a request under subsection (i), the Secretary 
     shall--
       (A) determine whether the community would have been subject 
     to such elimination of subsidies or termination of 
     eligibility under the distance requirement enacted by the 
     amendment made by subsection (g) of this bill to subchapter 
     II of chapter 417 of title 49, United States Code; and
       (B) issue a final order with respect to the eligibility of 
     such community for essential air service subsidies under 
     subchapter II of chapter 417 of title 49, United States Code, 
     as amended by this Act.

     SEC. 525. REIMBURSEMENT FOR LOSSES INCURRED BY GENERAL 
                   AVIATION ENTITIES.

       (a) In General.--The Secretary of Transportation may make 
     grants to reimburse the following general aviation entities 
     for economic losses as a result of the restrictions imposed 
     by the Federal Government following the terrorist attacks on 
     the United States that occurred on September 11, 2001:
       (1) General aviation entities that operate at Ronald Reagan 
     Washington National Airport.
       (2) Airports that are located within 15 miles of Ronald 
     Reagan Washington National Airport and were operating under 
     security restrictions on the date of enactment of this Act 
     and general aviation entities operating at those airports.
       (3) Any other general aviation entity that is prevented 
     from doing business or operating by an action of the Federal 
     Government prohibiting access to airspace by that entity.
       (b) Documentation.--Reimbursement under this section shall 
     be made in accordance with sworn financial statements or 
     other appropriate data submitted by each general aviation 
     entity demonstrating the costs incurred and revenue foregone 
     to the satisfaction of the Secretary.
       (c) General Aviation Entity Defined.--In this section, the 
     term ``general aviation entity'' means any person (other than 
     a scheduled air carrier or foreign air carrier, as such terms 
     are defined in section 40102 of title 49, United States Code) 
     that--
       (1) operates nonmilitary aircraft under part 91 of title 
     14, Code of Federal Regulations, for the purpose of 
     conducting its primary business;
       (2) provides services necessary for nonmilitary operations 
     under such part 91; or
       (3) operates an airport, other than a primary airport (as 
     such terms are defined in such section 40102), that--
       (A) is listed in the national plan of integrated airport 
     systems developed by the Federal Aviation Administration 
     under section 47103 of such title; or
       (B) is normally open to the public, is located within the 
     confines of enhanced class B airspace (as defined by the 
     Federal Aviation Administration in Notice to Airmen FDC 1/
     0618), and was closed as a result of an order issued by the 
     Federal Aviation Administration in the period beginning 
     September 11, 2001, and ending January 1, 2002, and remained 
     closed as a result of that order on January 1, 2002.
     Such term includes fixed based operators, persons engaged in 
     nonscheduled air taxi service or aircraft rental.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000. 
     Such sums shall remain available until expended.

     SEC. 526. RECOMMENDATIONS CONCERNING TRAVEL AGENTS.

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

     SEC. 527. PASS-THROUGH OF REFUNDED PASSENGER SECURITY FEES TO 
                   CODE-SHARE PARTNERS.

       (a) In General.--Within 30 days after the date of enactment 
     of this Act, each United States flag air carrier that 
     received a payment made under the second proviso of first 
     appropriation in title IV of the Emergency Wartime 
     Supplemental Appropriations Act, 2003 (Pub. L. 108-011; 117 
     Stat. 604) shall transfer to each air carrier with which it 
     had a code-share arrangement during the period covered by the 
     passenger security fees remitted under that proviso an amount 
     equal to that portion of the remittance under the proviso 
     that was attributable to passenger security fees paid or 
     collected by that code-share air carrier and taken into 
     account in determining the amount of the payment to the 
     United States flag air carrier.
       (b) DOT Inspector General Oversight.--The Inspector General 
     of the Department of Transportation shall review the 
     compliance of United States flag air carriers with subsection 
     (a), including determinations of amounts, determinations of 
     eligibility of code-share air carriers, and transfers of 
     funds to such air carriers under subsection (a).
       (c) Certification.--The chief executive officer of each 
     United States flag air carrier to which subsection (a) 
     applies shall certify to the Under Secretary of Homeland 
     Security for Border and Transportation Security, under 
     penalty of perjury, the air carrier's compliance with 
     subsection (a).

     SEC. 528. AIR CARRIER CITIZENSHIP.

       Section 40102(a)(15)(C) of title 49, United States Code, is 
     amended by inserting ``which is under the actual control of 
     citizens of the United States,'' before ``and in which''.

     SEC. 529. UNITED STATES PRESENCE IN GLOBAL AIR CARGO 
                   INDUSTRY.

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

                   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 $900,000,000,000 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--

[[Page S7900]]

       (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.

     SEC. 624. TRANSFER OF CERTAIN AIR TRAFFIC CONTROL FUNCTIONS 
                   PROHIBITED.

       (a) In General.--The Secretary of Transportation may not 
     authorize the transfer to a private entity or to a public 
     entity other than the United States Government of--
       (1) the air traffic separation and control functions 
     operated by the Federal Aviation Administration on the date 
     of enactment of this Act; or
       (2) the maintenance of certifiable systems and other 
     functions related to certification of national airspace 
     systems and services operated by the Federal Aviation 
     Administration on the date of enactment of this Act or flight 
     service station personnel.
       (b) Contract Tower Program.--Subsection (a)(1) shall not 
     apply to a Federal Aviation Administration air traffic 
     control tower operated under the contract tower program as of 
     the date of enactment of this Act.

                     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

[[Page S7901]]

     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. AIR QUALITY IN AIRCRAFT CABINS.

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

     SEC. 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

[[Page S7902]]

     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.

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

     SEC. 701. EXTENSION OF EXPENDITURE AUTHORITY.

       (a) In General.--Paragraph (1) of section 9502(d) of the 
     Internal Revenue Code of 1986 (relating to expenditures from 
     Airport and Airway Trust Fund) is amended--
       (1) by striking ``October 1, 2003'' and inserting ``October 
     1, 2006'', and
       (2) by inserting before the semicolon at the end of 
     subparagraph (A) the following: ``or the Aviation Investment 
     and Revitalization Vision Act''.
       (b) Conforming Amendment.--Paragraph (2) of section 9502(f) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``October 1, 2003'' and inserting ``October 1, 2006''.

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