[Congressional Record Volume 149, Number 112 (Friday, July 25, 2003)]
[House]
[Pages H7718-H7764]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          VISION 100--CENTURY OF AVIATION REAUTHORIZATION ACT

  Mr. YOUNG of Alaska submitted the following conference report and 
statement on the bill (H.R. 2115) to amend title 49, United States 
Code, to reauthorize programs for the Federal Aviation Administration, 
and for other purposes.

                  Conference Report (H. Rept. 108-240)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2115), to amend title 49, United States Code, to reauthorize 
     programs for the Federal Aviation Administration, and for 
     other purposes, having met, after full and free conference, 
     have agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Vision 
     100--Century of Aviation Reauthorization Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Applicability.
Sec. 4. Findings.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

                  Subtitle A--Funding of FAA Programs

Sec. 101. Airport planning and development and noise compatibility 
              planning and programs.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. Federal Aviation Administration operations.
Sec. 104. Funding for aviation programs.
Sec. 105. Agreements for operation of airport facilities.
Sec. 106. Insurance.

                  Subtitle B--Passenger Facility Fees

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

                     Subtitle C--AIP Modifications

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

[[Page H7719]]

                       Subtitle D--Miscellaneous

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

                       TITLE II--FAA ORGANIZATION

                         Subtitle A--FAA Reform

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

                       Subtitle B--Miscellaneous

Sec. 221. Controller staffing.
Sec. 222. Whistleblower protection under acquisition management system.
Sec. 223. FAA purchase cards.
Sec. 224. Procurement.
Sec. 225. Definitions.
Sec. 226. Air traffic controller retirement.
Sec. 227. Design organization certificates.
Sec. 228. Judicial review.
Sec. 229. Overflight fees.
Sec. 230. Prohibition on air traffic control privatization.
Sec. 231. Definition of air traffic controller.

                    TITLE III--ENVIRONMENTAL PROCESS

             Subtitle A--Aviation Development Streamlining

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

                       Subtitle B--Miscellaneous

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

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

                Subtitle A--Small Community Air Service

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

                       Subtitle B--Miscellaneous

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

                        TITLE V--AVIATION SAFETY

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

                      TITLE VI--AVIATION SECURITY

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

                      TITLE VII--AVIATION RESEARCH

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

                       TITLE VIII--MISCELLANEOUS

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

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

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

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

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

     SEC. 3. APPLICABILITY.

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

     SEC. 4. FINDINGS.

       Congress finds the following:
       (1) The United States has revolutionized the way people 
     travel, developing new technologies and aircraft to move 
     people more efficiently and more safely.
       (2) Past Federal investment in aeronautics research and 
     development has benefited the economy and national security 
     of the United States and the quality of life of its citizens.
       (3) The total impact of civil aviation on the United States 
     economy exceeds $900,000,000,000 annually and accounts for 9 
     percent of the gross national product and 11,000,000 jobs in 
     the national workforce. Civil aviation products and services 
     generate a significant surplus for United States trade 
     accounts, and amount to significant numbers of the Nation's 
     highly skilled, technologically qualified work force.
       (4) Aerospace technologies, products, and services underpin 
     the advanced capabilities of our men and women in uniform and 
     those charged with homeland security.
       (5) Future growth in civil aviation increasingly will be 
     constrained by concerns related to aviation system safety and 
     security, aviation system capabilities, aircraft noise, 
     emissions, and fuel consumption.
       (6) Revitalization and coordination of the United States 
     efforts to maintain its leadership in aviation and 
     aeronautics are critical and must begin now.
       (7) A recent report by the Commission on the Future of the 
     United States Aerospace Industry

[[Page H7720]]

     outlined the scope of the problems confronting the aerospace 
     and aviation industries in the United States and found that--
       (A) aerospace will be at the core of the Nation's 
     leadership and strength throughout the 21st century;
       (B) aerospace will play an integral role in the Nation's 
     economy, security, and mobility; and
       (C) global leadership in aerospace is a national 
     imperative.
       (8) Despite the downturn in the global economy, projections 
     of the Federal Aviation Administration indicate that upwards 
     of 1,000,000,000 people will fly annually by 2013. Efforts 
     must begin now to prepare for future growth in the number of 
     airline passengers.
       (9) The United States must increase its investment in 
     research and development to revitalize the aviation and 
     aerospace industries, to create jobs, and to provide 
     educational assistance and training to prepare workers in 
     those industries for the future.
                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS
                  Subtitle A--Funding of FAA Programs

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

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

     SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

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

     SEC. 103. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

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

     SEC. 104. FUNDING FOR AVIATION PROGRAMS.

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

     ``Sec. 48114. Funding for aviation programs

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

``48114. Funding for aviation programs.''.
       (c) Repeal.--Section 106 of the Wendell H. Ford Aviation 
     Investment and Reform Act for the 21st Century (49 U.S.C. 
     48101 note) is repealed.

     SEC. 105. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

       Section 47124 is amended--

[[Page H7721]]

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

     SEC. 106. INSURANCE.

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

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

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

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

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

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

       (a) Application Requirements.--Section 40117(c) is 
     amended--
       (1) by adding at the end of paragraph (2) the following:
       ``(E) The agency must include in its application or notice 
     submitted under subparagraph (A) copies of all certifications 
     of agreement or disagreement received under subparagraph (D).
       ``(F) For the purpose of this section, an eligible agency 
     providing notice and an opportunity for consultation to an 
     air carrier or foreign air carrier is deemed to have 
     satisfied the requirements of this paragraph if the eligible 
     agency limits such notices and consultations to air carriers 
     and foreign air carriers that have a significant business 
     interest at the airport. In the subparagraph, the term 
     `significant business interest' means an air carrier or 
     foreign air carrier that had no less than 1.0 percent of 
     passenger boardings at the airport in the prior calendar 
     year, had at least 25,000 passenger boardings at the airport 
     in the prior calendar year, or provides scheduled service at 
     the airport.'';
       (2) by redesignating paragraph (3) as paragraph (4);
       (3) by inserting after paragraph (2) the following:
       ``(3) Before submitting an application, the eligible agency 
     must provide reasonable notice and an opportunity for public 
     comment. The Secretary shall prescribe regulations that 
     define reasonable notice and provide for at least the 
     following under this paragraph:
       ``(A) A requirement that the eligible agency provide public 
     notice of intent to collect a passenger facility fee so as to 
     inform those interested persons and agencies that may be 
     affected. The public notice may include--
       ``(i) publication in local newspapers of general 
     circulation;
       ``(ii) publication in other local media; and
       ``(iii) posting the notice on the agency's Internet 
     website.
       ``(B) A requirement for submission of public comments no 
     sooner than 30 days, and no later than 45 days, after the 
     date of the publication of the notice.
       ``(C) A requirement that the agency include in its 
     application or notice submitted under subparagraph (A) copies 
     of all comments received under subparagraph (B).''; and
       (4) in the first sentence of paragraph (4) (as redesignated 
     by paragraph (2) of this subsection) by striking ``shall'' 
     and inserting ``may''.
       (b) Pilot Program for Passenger Facility Fee Authorizations 
     at Nonhub Airports.--Section 40117 is amended by adding at 
     the end the following:
       ``(l) Pilot Program for Passenger Facility Fee 
     Authorizations at Nonhub Airports.--
       ``(1) In general.--The Secretary shall establish a pilot 
     program to test alternative procedures for authorizing 
     eligible agencies for nonhub airports to impose passenger 
     facility fees. An eligible agency may impose in accordance 
     with the provisions of this subsection a passenger facility 
     fee under this section. For purposes of the pilot program, 
     the procedures in this subsection shall apply instead of the 
     procedures otherwise provided in this section.
       ``(2) Notice and opportunity for consultation.--The 
     eligible agency must provide reasonable notice and an 
     opportunity for consultation to air carriers and foreign air 
     carriers in accordance with subsection (c)(2) and must 
     provide reasonable notice and opportunity for public comment 
     in accordance with subsection (c)(3).
       ``(3) Notice of intention.--The eligible agency must submit 
     to the Secretary a notice of intention to impose a passenger 
     facility fee under this subsection. The notice shall 
     include--
       ``(A) information that the Secretary may require by 
     regulation on each project for which authority to impose a 
     passenger facility fee is sought;
       ``(B) the amount of revenue from passenger facility fees 
     that is proposed to be collected for each project; and
       ``(C) the level of the passenger facility fee that is 
     proposed.
       ``(4) Acknowledgement of receipt and indication of 
     objection.--The Secretary shall acknowledge receipt of the 
     notice and indicate

[[Page H7722]]

     any objection to the imposition of a passenger facility fee 
     under this subsection for any project identified in the 
     notice within 30 days after receipt of the eligible agency's 
     notice.
       ``(5) Authority to impose fee.--Unless the Secretary 
     objects within 30 days after receipt of the eligible agency's 
     notice, the eligible agency is authorized to impose a 
     passenger facility fee in accordance with the terms of its 
     notice under this subsection.
       ``(6) Regulations.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary shall propose 
     such regulations as may be necessary to carry out this 
     subsection.
       ``(7) Sunset.--This subsection shall cease to be effective 
     beginning on the date that is 3 years after the date of 
     issuance of regulations to carry out this subsection.
       ``(8) Acknowledgement not an order.--An acknowledgement 
     issued under paragraph (4) shall not be considered an order 
     issued by the Secretary for purposes of section 46110.''.
       (c) Clarification of Applicability of PFC's to Military 
     Charters.--Section 40117(e)(2) is amended--
       (1) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon;
       (2) by striking ``and'' at the end of subparagraph (D);
       (3) by striking the period at the end of subparagraph (E) 
     and inserting ``; and''; and
       (4) by adding after subparagraph (E) the following:
       ``(F) enplaning at an airport if the passenger did not pay 
     for the air transportation which resulted in such enplanement 
     due to charter arrangements and payment by the Department of 
     Defense.''.
       (d) Technical Amendments.--Section 40117(a)(3)(C) is 
     amended--
       (1) by striking ``for costs'' and inserting ``A project for 
     costs''; and
       (2) by striking the semicolon and inserting a period.
       (e) Eligibility of Airport Ground Access Transportation 
     Projects.--Not later than 60 days after the enactment of this 
     Act, the Administrator of the Federal Aviation Administration 
     shall publish in the Federal Register the current policy of 
     the Administration, consistent with current law, with respect 
     to the eligibility of airport ground access transportation 
     projects for the use of passenger facility fees under section 
     40117 of title 49, United States Code.

     SEC. 124. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES.

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

     SEC. 141. AIRFIELD PAVEMENT.

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

     SEC. 142. REPLACEMENT OF BAGGAGE CONVEYOR SYSTEMS.

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

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

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

     SEC. 144. GRANT ASSURANCES.

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

     SEC. 145. CLARIFICATION OF ALLOWABLE PROJECT COSTS.

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

     SEC. 146. APPORTIONMENTS TO PRIMARY AIRPORTS.

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

     SEC. 147. CARGO AIRPORTS.

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

     SEC. 148. CONSIDERATIONS IN MAKING DISCRETIONARY GRANTS.

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

     SEC. 149. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT 
                   APPORTIONMENTS.

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

[[Page H7723]]

       (2) by striking the period at the end of paragraph (4) and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(5) to a sponsor of a nonprimary airport, any part of 
     amounts apportioned to the sponsor for the fiscal year under 
     section 47114(d)(3)(A) for project costs allowable under 
     section 47110(d).''.

     SEC. 150. USE OF APPORTIONED AMOUNTS.

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

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

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

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

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

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

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

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

     SEC. 153. MILITARY AIRPORT PROGRAM.

       Section 47118 is amended--
       (1) in subsection (e) by striking ``Not more than 
     $7,000,000 for each airport from amounts the Secretary 
     distributes under section 47115 of this title for a fiscal 
     year is available'' and inserting ``From amounts the 
     Secretary distributes to an airport under section 47115, 
     $10,000,000 for each of fiscal years 2004 and 2005, and 
     $7,000,000 for each fiscal year thereafter, is available''; 
     and
       (2) in subsection (f)--
       (A) by striking ``Not more than a total of $7,000,000 for 
     each airport from amounts the Secretary distributes under 
     section 47115 of this title for fiscal years beginning after 
     September 30, 1992, is available'' and inserting the 
     following:
       ``(1) Construction.--From amounts the Secretary distributes 
     to an airport under section 47115, $10,000,000 for each of 
     fiscal years 2004 and 2005, and $7,000,000 for each fiscal 
     year thereafter, is available''; and
       (2) by adding at the end the following:
       ``(2) Reimbursement.--Upon approval of the Secretary, the 
     sponsor of a current or former military airport the Secretary 
     designates under this section may use an amount apportioned 
     under section 47114, or made available under section 
     47119(b), to the airport for reimbursement of costs incurred 
     by the airport in fiscal years 2003 and 2004 for 
     construction, improvement, or repair described in paragraph 
     (1).''.

     SEC. 154. AIRPORT SAFETY DATA COLLECTION.

       Section 47130 is amended to read as follows:

     ``Sec. 47130. Airport safety data collection

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

     SEC. 155. AIRPORT PRIVATIZATION PILOT PROGRAM.

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

     SEC. 156. INNOVATIVE FINANCING TECHNIQUES.

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

     SEC. 157. AIRPORT SECURITY PROGRAM.

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

     SEC. 158. EMISSION CREDITS FOR AIR QUALITY PROJECTS.

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

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

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

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

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

       (a) Airport Ground Support Equipment Emissions Retrofit 
     Pilot Program.--

[[Page H7724]]

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

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

       ``(a) In General.--The Secretary of Transportation shall 
     carry out a pilot program at not more than 10 commercial 
     service airports under which the sponsors of such airports 
     may use an amount made available under section 48103 to 
     retrofit existing eligible airport ground support equipment 
     that burns conventional fuels to achieve lower emissions 
     utilizing emission control technologies certified or verified 
     by the Environmental Protection Agency.
       ``(b) Location in Air Quality Nonattainment or Maintenance 
     Areas.--A commercial service airport shall be eligible for 
     participation in the pilot program only if the airport is 
     located in an air quality nonattainment area (as defined in 
     section 171(2) of the Clean Air Act (42 U.S.C. 7501(2)) or a 
     maintenance area referred to in section 175A of such Act (42 
     U.S.C. 7505a).
       ``(c) Selection Criteria.--In selecting from among 
     applicants for participation in the pilot program, the 
     Secretary shall give priority consideration to applicants 
     that will achieve the greatest air quality benefits measured 
     by the amount of emissions reduced per dollar of funds 
     expended under the pilot program.
       ``(d) Maximum Amount.--Not more than $500,000 may be 
     expended under the pilot program at any single commercial 
     service airport.
       ``(e) Guidelines.--The Secretary, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     establish guidelines regarding the types of retrofit projects 
     eligible under the pilot program by considering remaining 
     equipment useful life, amounts of emission reduction in 
     relation to the cost of projects, and other factors necessary 
     to carry out this section. The Secretary may give priority to 
     ground support equipment owned by the airport and used for 
     airport purposes.
       ``(f) Eligible Equipment Defined.--In this section, the 
     term `eligible equipment' means ground service or maintenance 
     equipment that is located at the airport, is used to support 
     aeronautical and related activities at the airport, and will 
     remain in operation at the airport for the life or useful 
     life of the equipment, whichever is earlier.''.
       (2) Conforming amendment.--The analysis for chapter 471 is 
     amended by inserting after the item relating to section 47139 
     the following:

``47140. Airport ground support equipment emissions retrofit pilot 
              program.''.
       (b) Activities Added to Definition of Airport 
     Development.--
       (1) In general.--Section 47102(3) is amended--
       (A) by striking subparagraphs (J), (K), and (L) and 
     redesignating subparagraph (M) as subparagraph (J); and
       (B) by adding at the end the following:
       ``(K) work necessary to construct or modify airport 
     facilities to provide low-emission fuel systems, gate 
     electrification, and other related air quality improvements 
     at a commercial service airport if the airport is located in 
     an air quality nonattainment or maintenance area (as defined 
     in sections 171(2) and 175A of the Clean Air Act (42 U.S.C. 
     7501(2); 7505a) and if such project will result in an airport 
     receiving appropriate emission credits, as described in 
     section 47139.
       ``(L) a project for the acquisition or conversion of 
     vehicles and ground support equipment, owned by a commercial 
     service airport, to low-emission technology, if the airport 
     is located in an air quality nonattainment or maintenance 
     area (as defined in sections 171(2) and 175A of the Clean Air 
     Act (42 U.S.C. 7501(2); 7505a) and if such project will 
     result in an airport receiving appropriate emission credits 
     as described in section 47139.''.
       (2) Guidance.--
       (A) Eligible low-emission modifications and improvements.--
     The Secretary of Transportation, in consultation with the 
     Administrator of the Environmental Protection Agency, shall 
     issue guidance describing eligible low-emission modifications 
     and improvements, and stating how airport sponsors will 
     demonstrate benefits, under section 47102(3)(K) of title 49, 
     United States Code, as added by this subsection.
       (B) Eligible low-emission vehicle technology.--The 
     Secretary, in consultation with the Administrator, shall 
     issue guidance describing eligible low-emission vehicle 
     technology, and stating how airport sponsors will demonstrate 
     benefits, under section 47102(3)(L) of title 49, United 
     States Code, as added by this subsection.
       (c) Allowable Project Cost.--Section 47110(b) is amended--
       (1) by striking ``and'' at the end of paragraph (4);
       (2) by striking the period at the end of paragraph (5) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(6) if the cost is for a project not described in section 
     47102(3) for acquiring for use at a commercial service 
     airport vehicles and ground support equipment owned by an 
     airport that include low-emission technology, but only to the 
     extent of the incremental cost of equipping such vehicles or 
     equipment with low emission technology, as determined by the 
     Secretary.''.
       (d) Low-Emission Technology Equipment.--Section 47102 (as 
     amended by section 801 of this Act) is further amended by 
     inserting after paragraph (10) the following:
       ``(11) `low-emission technology' means technology for 
     vehicles and equipment whose emission performance is the best 
     achievable under emission standards established by the 
     Environmental Protection Agency and that relies exclusively 
     on alternative fuels that are substantially non-petroleum 
     based, as defined by the Department of Energy, but not 
     excluding hybrid systems or natural gas powered vehicles.''.

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

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

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

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

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

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

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

     SEC. 162. SHARE OF AIRPORT PROJECT COSTS.

       (a) In General.--Section 47109 is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Grandfather Rule.--
       ``(1) In general.--In the case of any project approved 
     after September 30, 2003, at a small hub airport or nonhub 
     airport that is located in a State containing unappropriated 
     and unreserved public lands and nontaxable Indian lands 
     (individual and tribal) of more than 5 percent of the total 
     area of all lands in the State, the Government's share of 
     allowable costs of the

[[Page H7725]]

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

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

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

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

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

     SEC. 165. HANGAR CONSTRUCTION GRANT ASSURANCE.

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

     SEC. 166. TERMINAL DEVELOPMENT COSTS.

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

     SEC. 181. DESIGN-BUILD CONTRACTING.

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

     ``Sec. 47142. Design-build contracting

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

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

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

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

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

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

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

       ``(a) In General.--Subject to the requirements of this 
     section, the Secretary may carry out a program under which 
     the Secretary may make grants to project sponsors for not 
     more than 10 eligible projects per fiscal year for the 
     purpose of improving aviation safety and enhancing mobility 
     of the Nation's air transportation system by encouraging non-
     Federal investment in critical air traffic control equipment 
     and software.
       ``(b) Federal Share.--The Federal share of the cost of an 
     eligible project carried out under the program shall not 
     exceed 33 percent. The non-Federal share of the cost of an 
     eligible project shall be provided from non-Federal sources, 
     including revenues collected pursuant to section 40117.
       ``(c) Limitation on Grant Amounts.--No eligible project may 
     receive more than $5,000,000 in Federal funds under the 
     program.
       ``(d) Funding.--The Secretary shall use amounts 
     appropriated under section 48101(a) to carry out the program.
       ``(e) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Eligible project.--The term `eligible project' means 
     a project to purchase equipment or software relating to the 
     Nation's air traffic control system that is certified or 
     approved by the Administrator of the Federal Aviation 
     Administration and that promotes safety, efficiency, or 
     mobility. Such projects may include--
       ``(A) airport-specific air traffic facilities and 
     equipment, including local area augmentation systems, 
     instrument landing systems, weather and wind shear detection 
     equipment, and lighting improvements;

[[Page H7726]]

       ``(B) automation tools to effect improvements in airport 
     capacity, including passive final approach spacing tools and 
     traffic management advisory equipment; and
       ``(C) equipment and software that enhance airspace control 
     procedures or assist in en route surveillance, including 
     oceanic and offshore flight tracking.
       ``(2) Project sponsor.--The term `project sponsor' means 
     any major user of the national airspace system, as determined 
     by the Secretary, including a public-use airport or a joint 
     venture between a public-use airport and one or more air 
     carriers.
       ``(f) Transfers of Equipment.--Notwithstanding any other 
     provision of law, and upon agreement by the Administrator, a 
     project sponsor may transfer, without consideration, to the 
     Federal Aviation Administration, facilities, equipment, or 
     automation tools, the purchase of which was assisted by a 
     grant made under this section, if such facilities, equipment 
     or tools meet Federal Aviation Administration operation and 
     maintenance criteria.
       ``(g) Guidelines.--The Administrator shall issue advisory 
     guidelines on the implementation of the program. The 
     guidelines shall not be subject to administrative rulemaking 
     requirements under subchapter II of chapter 5 of title 5.''.
       (b) Conforming Amendment.--The analysis for chapter 445 is 
     amended by adding at the end the following:

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

     SEC. 184. FACILITIES AND EQUIPMENT REPORTS.

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

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

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

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

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

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

     SEC. 186. MIDWAY ISLAND AIRPORT.

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

     SEC. 187. INTERMODAL PLANNING.

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

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

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

     SEC. 189. LIMITATION ON APPROVAL OF CERTAIN PROGRAMS.

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

     SEC. 190. CONVEYANCE OF AIRPORT.

       (a) Offer of Conveyance.--Subject to the requirements of 
     this section, the Chaluka Corporation is hereby offered 
     ownership of the surface estate in the former Nikolski Radio 
     Relay Site on Umnak Island, Alaska, and the Aleut Corporation 
     is hereby offered the subsurface estate of that Site, in 
     exchange for relinquishment by the Chaluka Corporation and 
     the Aleut Corporation of Lot 1, Section 14, Township 81 
     South, Range 133 West, Seward Meridian, Alaska.
       (b) Acceptance and Relinquishment.--
       (1) In general.--The Secretary of the Interior shall convey 
     the land as provided in subsection (c) if the Chaluka 
     Corporation and the Aleut Corporation take the actions 
     specified in paragraphs (2) and (3), respectively.
       (2) Chaluka corporation.--As a condition for conveyance 
     under subsection (c), the Chaluka Corporation shall notify 
     the Secretary of the Interior within 180 days after the date 
     of enactment of this Act that, by means of a legally binding 
     resolution of the Board of Directors, the Chaluka 
     Corporation--
       (A) accepts the offer under subsection (a);
       (B) confirms that the area surveyed by the Bureau of Land 
     Management for the purpose of fulfilling the Chaluka 
     Corporation's final entitlements under sections 12(a) and 
     12(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 
     1611(a) and (b)), identified as Group Survey Number 773, 
     accurately represents the Chaluka Corporation's final, 
     irrevocable Alaska Native Claims Settlement Act priorities 
     and entitlements unless any tract in Group Survey Number 773 
     is ultimately not conveyed as the result of an appeal; and
       (C) relinquishes Lot 1, Section 14, Township 81 South, 
     Range 133 West, Seward Meridian, Alaska, which will be 
     charged against the Chaluka Corporation's final entitlement 
     under section 12(b) of the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1611(b)).
       (3) Aleut corporation.--As a condition for the conveyance 
     under subsection (c), the Aleut Corporation shall notify the 
     Secretary of the Interior within 180 days after the date of 
     enactment of this Act that, by means of a legally binding 
     resolution of the Board of Directors, accompanied by the 
     written legal opinion of counsel as to the legal sufficiency 
     of the Board of Directors' action, the Aleut Corporation--
       (A) accepts the offer under subsection (a); and
       (B) relinquishes all rights to Lot 1, Section 14, Township 
     81 South, Range 133 West, Seward Meridian, Alaska.
       (c) Requirement To Convey.--
       (1) Conveyance.--Notwithstanding the existence of Public 
     Land Order 2374, upon receipt from the Chaluka Corporation 
     and from the Aleut Corporation of their acceptances made in 
     accordance with the requirements of subsections (b)(2) and 
     (b)(3), respectively, of the offer under subsection (a), the 
     Secretary of the Interior shall convey to the Chaluka 
     Corporation the surface estate, and to the Aleut Corporation 
     the subsurface estate, of--
       (A) Phase I lands as soon as practicable; and
       (B) each parcel of Phase II lands upon completion of 
     environmental restoration of Phase II lands in accordance 
     with applicable law.
       (2) Phase i liability limit.--Notwithstanding section 107 
     of the Comprehensive Environmental Response, Compensation, 
     and Liability Act of 1980 (42 U.S.C. 9607), neither the 
     Chaluka Corporation nor the Aleut Corporation shall be 
     subject to any liability for--
       (A) the presence or release of a hazardous substance, as 
     that term is defined by section 101(14) of that Act (16 
     U.S.C. 9601(14)), on Phase I lands or the presence of solid 
     waste on Phase I lands, which predates conveyance of those 
     lands to the Chaluka Corporation and the Aleut Corporation 
     pursuant to this section; or
       (B) any release, from any of the hazardous substances or 
     solid wastes referred to in subparagraph (A), following 
     conveyance of Phase I lands under this section, so long as 
     the presence of or releases from those hazardous substances 
     or solid wastes are not the result of actions by the Chaluka 
     Corporation or the Aleut Corporation.
       (3) Continued access over hill and beach streets.--The 
     surface estate conveyed under paragraph (1) shall be subject 
     to the public's right of access over Hill and Beach Streets, 
     located on Tract B of United States Survey 4904.
       (d) Treatment as ANCSA lands.--Conveyances made under 
     subsection (c) shall be considered to be conveyances under 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.),

[[Page H7727]]

     and are subject to the provisions of that Act except sections 
     14(c)(3), 14(c)(4), and 17(b)(3) (43 U.S.C. 1613(c)(3), 
     1613(c)(4), and 1616(b)(3)).
       (e) Authority To Convey Certain Other Lands.--The Secretary 
     of the Interior shall at no cost to the recipient convey 
     ownership of--
       (1) an estate in fee simple in--
       (A) each of Lots 1, 2, 5, 6, and 9 of Tract B of Amended 
     United States Survey 4904 that is the subject of an Aleutian 
     Housing Authority mutual help occupancy agreement, to the 
     Aleutian Housing Authority; and
       (B) the remainder of such Lots to the current occupants; 
     and
       (2) an estate in fee simple in the Nikolski powerhouse 
     land, to--
       (A) the Indian Reorganization Act Tribal Government for the 
     Native Village of Nikolski, upon completion of the 
     environmental restoration described in subsection (f), if 
     after the restoration the powerhouse continues to be located 
     on the Nikolski powerhouse land; or
       (B) the surface estate to the Chaluka Corporation and the 
     subsurface estate to the Aleut Corporation, if after the 
     restoration, the Nikolski powerhouse is no longer located on 
     the Nikolski powerhouse land. -
       (f) Restoration of Powerhouse Land.--The Denali Commission, 
     in consultation with the appropriate agency of the State of 
     Alaska, is authorized to arrange for environmental 
     restoration, in accordance with applicable law, of the areas 
     on, beneath, and adjacent to the Nikolski powerhouse land 
     that are contaminated as a result of powerhouse operations 
     and activities.
       (g) Access.--As a condition of the conveyance of land under 
     subsection (c), the Chaluka Corporation shall permit the 
     United States Government, and its agents, employees, and 
     contractors, to have unrestricted access to the airfield at 
     Nikolski in perpetuity for site investigation, restoration, 
     remediation, and environmental monitoring of the former 
     Nikolski Radio Relay Site and reasonable access to that 
     airfield, and to other land conveyed under this section, for 
     any activity associated with management of lands owned by the 
     United States and for other governmental purposes without 
     cost to the Government.
       (h) Survey Requirements.--
       (1) BLM surveys.--The Bureau of Land Management is not 
     required to conduct additional on-the-ground surveys as a 
     result of conveyances under this section. The patent to the 
     Chaluka Corporation may be based on protracted section lines 
     and lotting where relinquishment under subsection (b)(2)(C) 
     results in a change to the Chaluka Corporation's final 
     boundaries.
       (2) Monumentation.--No additional monumentation is required 
     to complete those final boundaries.
       (i) Authorization of Appropriations.--
       (1) Federal agencies.--There is authorized to be 
     appropriated to the Department of the Interior and other 
     appropriate agencies such sums as are necessary to carry out 
     the provisions of this section.
       (2) Powerhouse land restoration.--There is authorized to be 
     appropriated $1,500,000 to reimburse the appropriate State of 
     Alaska agency for costs required for environmental 
     restoration of the Nikolski powerhouse land, in accordance 
     with applicable law.
       (j) Termination.--This section shall cease to be effective 
     if either the Chaluka Corporation or the Aleut Corporation 
     affirmatively rejects the offer under subsection (a) or if 
     after 180 days following the date of enactment of this Act 
     either corporation has not taken the actions specified in 
     subsection (b)(2) or (b)(3), respectively.
       (k) Definitions.--In this section, the following defintions 
     apply:
       (1) The term ``Aleut Corporation'' means the regional 
     corporation established under the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1601 et seq.) for the region in 
     which the Native Village of Nikolski, Alaska, is located.
       (2) The term ``Chaluka Corporation'' means the village 
     corporation established under the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1601 et seq.) for the Native 
     Village of Nikolski, Alaska.
       (3) The term ``former Nikolski Radio Relay Site'' means the 
     portions of Tracts A, B, and C of Public Land Order 2374 that 
     are surveyed as Tracts 37, 37A, 38, 39, and 39A of Township 
     83 South, Range 136 West, Seward Meridian, Alaska, and Tract 
     B of United States Survey 4904, Alaska, except--
       (A) Lots 1, 2, 5, 6, and 9 of Tract B of Amended United 
     States Survey 4904; and
       (B) the Nikolski powerhouse land.
       (4) The term ``Nikolski powerhouse land'' means the parcel 
     of land upon which is located the power generation building 
     for supplying power to the Native Village of Nikolski, the 
     boundaries of which are described generally as follows: 
     Beginning at the point at which the southerly boundary of 
     Tract 39 of Township 83 South, Range 136 West, Seward 
     Meridian, Alaska, intersects the easterly boundary of the 
     road that connects the Native Village of Nikolski and the 
     airfield at Nikolski; then meandering in a northeasterly 
     direction along the easterly boundary of that road until the 
     road intersects the westerly boundary of the road that 
     connects Umnak Lake and the airfield; then meandering in a 
     southerly direction along the western boundary of that Umnak 
     Lake road until that western boundary intersects the southern 
     boundary of such Tract 39; then proceeding eastward along the 
     southern boundary of such Tract 39 to the beginning point.
       (5) The term ``Phase I lands'' means Tract 39 of Township 
     83 South, Range 136 West, Seward Meridian, excluding the 
     Nikolski powerhouse land.
       (6) The term ``Phase II lands'' means the portion of the 
     former Nikolski Radio Relay Site not conveyed as Phase I 
     lands.
                       TITLE II--FAA ORGANIZATION
                         Subtitle A--FAA Reform

     SEC. 201. MANAGEMENT ADVISORY COMMITTEE MEMBERS.

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

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

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

       ``(I) Management of large service organizations.
       ``(II) Customer service.
       ``(III) Management of large procurements.
       ``(IV) Information and communications technology.

[[Page H7728]]

       ``(V) Organizational development.
       ``(VI) Labor relations.

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

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

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

     SEC. 204. DEPUTY ADMINISTRATOR.

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

     SEC. 221. CONTROLLER STAFFING.

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

     SEC. 222. WHISTLEBLOWER PROTECTION UNDER ACQUISITION 
                   MANAGEMENT SYSTEM.

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

     SEC. 223. FAA PURCHASE CARDS.

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

     SEC. 224. PROCUREMENT.

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

     SEC. 225. DEFINITIONS.

       (a) In General.--Section 40102(a) is amended--
       (1) by redesignating paragraphs (38) through (42) as 
     paragraphs (43) through (47), respectively;
       (2) by inserting after paragraph (37) the following:
       ``(42) `small hub airport' means a commercial service 
     airport (as defined in section 47102) that has at least 0.05 
     percent but less than 0.25 percent of the passenger 
     boardings.'';
       (3) by redesignating paragraphs (33) through (37) as 
     paragraphs (37) through (41) respectively;
       (4) by inserting after paragraph (32) the following:
       ``(36) `passenger boardings'--
       ``(A) means, unless the context indicates otherwise, 
     revenue passenger boardings in the United States in the prior 
     calendar year on an aircraft in service in air commerce, as 
     the Secretary determines under regulations the Secretary 
     prescribes; and
       ``(B) includes passengers who continue on an aircraft in 
     international flight that stops at an airport in the 48 
     contiguous States, Alaska, or Hawaii for a nontraffic 
     purpose.'';
       (5) by redesignating paragraph (32) as paragraph (35);
       (6) by inserting after paragraph (31) the following:
       ``(34) `nonhub airport' means a commercial service airport 
     (as defined in section 47102) that has less than 0.05 percent 
     of the passenger boardings.'';
       (7) by redesignating paragraphs (30) and (31) as paragraphs 
     (32) and (33), respectively;
       (8) by inserting after paragraph (29) the following:
       ``(31) `medium hub airport' means a commercial service 
     airport (as defined in section 47102) that has at least 0.25 
     percent but less than 1.0 percent of the passenger 
     boardings.'';
       (9) by redesignating paragraph (29) as paragraph (30); and

[[Page H7729]]

       (10) by inserting after paragraph (28) the following:
       ``(29) `large hub airport' means a commercial service 
     airport (as defined in section 47102) that has at least 1.0 
     percent of the passenger boardings.''.
       (b) Conforming Amendments.--
       (1) Air service termination notice.--Section 41719(d) is 
     amended--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) through (5) as 
     paragraphs (1) through (4), respectively.
       (2) Small community air service.--Section 41731(a) is 
     amended by striking paragraphs (3) through (5).
       (3) Airports not receiving sufficient service.--Section 
     41743 is amended--
       (A) in subsection (c)(1) by striking ``(as that term is 
     defined in section 41731(a)(5))''; and
       (B) in subsection (f) by striking ``(as defined in section 
     41731(a)(3))''.
       (4) Preservation of basic essential air service at single 
     carrier dominated hub airports.--Section 41744(b) is amended 
     by striking ``(as defined in section 41731)''.
       (5) Regional air service incentive program.--Section 41762 
     is amended--
       (A) by striking paragraphs (11) and (15); and
       (B) by redesignating paragraphs (12), (13), (14), and (16) 
     as paragraphs (11), (12), (13), and (14), respectively.

     SEC. 226. AIR TRAFFIC CONTROLLER RETIREMENT.

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

     An amount under this subparagraph shall include interest, 
     computed under paragraphs (2) and (3) of section 8334(e) of 
     such title 5.
       (B) Prior service described.--This paragraph applies with 
     respect to any service performed by an individual before the 
     effective date of this section as an employee described in 
     section 8401(35)(B) of title 5, United States Code (as 
     amended by subsection (a)(2)).

     SEC. 227. DESIGN ORGANIZATION CERTIFICATES.

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

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

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

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

     SEC. 228. JUDICIAL REVIEW.

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

     SEC. 229. OVERFLIGHT FEES.

       (a) Adoption and Legalization of Certain Rules.--
       (1) Applicability and effect of certain law.--
     Notwithstanding section 141(d)(1) of the Aviation and 
     Transportation Security Act (49 U.S.C. 44901 note), section 
     45301(b)(1)(B) of title 49, United States Code, is deemed to 
     apply to and to have effect with respect to the authority of 
     the Administrator of the Federal Aviation Administration with 
     respect to the interim final

[[Page H7730]]

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

     SEC. 230. PROHIBITION ON AIR TRAFFIC CONTROL PRIVATIZATION.

       (a) In General.--Until October 1, 2007, the Secretary of 
     Transportation may not authorize the transfer of the air 
     traffic separation and control functions operated by the 
     Federal Aviation Administration on the date of enactment of 
     this Act to a private entity or to a public entity other than 
     the United State Government.
       (b) Limitation.--Subsection (a) shall not apply--
       (1) to a Federal Aviation Administration air traffic 
     control tower operated under the contract tower program on 
     the date of enactment of this Act;
       (2) to any expansion of that program through new 
     construction under subtitle VII of title 49, United States 
     Code; or
       (3) to a Federal Aviation Administration air traffic 
     control tower (other than towers in Alaska) identified in the 
     Report of the Department of Transportation Inspector General 
     dated April 12, 2000, and designated ``Contract Towers: 
     Observations on the Federal Aviation Administration's Study 
     of Expanding the Program''.
                    TITLE III--ENVIRONMENTAL PROCESS
             Subtitle A--Aviation Development Streamlining

     SEC. 301. SHORT TITLE.

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

     SEC. 302. FINDINGS.

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

     SEC. 303. AIRPORT CAPACITY ENHANCEMENT.

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

     SEC. 304. AVIATION PROJECT STREAMLINING.

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

          ``SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

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

       ``(a) Aviation Project Review Process.--The Secretary of 
     Transportation shall develop and implement an expedited and 
     coordinated environmental review process for airport capacity 
     enhancement projects at congested airports, aviation safety 
     projects, and aviation security projects that--
       ``(1) provides for better coordination among the Federal, 
     regional, State, and local agencies concerned with the 
     preparation of environmental impact statements or 
     environmental assessments under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.);
       ``(2) provides that all environmental reviews, analyses, 
     opinions, permits, licenses, and approvals that must be 
     issued or made by a Federal agency or airport sponsor for 
     such a project will be conducted concurrently, to the maximum 
     extent practicable; and
       ``(3) provides that any environmental review, analysis, 
     opinion, permit, license, or approval that must be issued or 
     made by a Federal agency or airport sponsor for such a 
     project will be completed within a time period established by 
     the Secretary, in cooperation with the agencies identified 
     under subsection (d) with respect to the project.
       ``(b) Aviation Projects Subject to a Streamlined 
     Environmental Review Process.--
       ``(1) Airport capacity enhancement projects at congested 
     airports.--An airport capacity enhancement project at a 
     congested airport shall be subject to the coordinated and 
     expedited environmental review process requirements set forth 
     in this section.
       ``(2) Aviation safety and aviation security projects.--
       ``(A) In general.--The Administrator of the Federal 
     Aviation Administration may designate an aviation safety 
     project or aviation security project for priority 
     environmental review. The Administrator may not delegate this 
     designation authority. A designated project shall be subject 
     to the coordinated and expedited environmental review process 
     requirements set forth in this section.
       ``(B) Project designation criteria.--The Administrator 
     shall establish guidelines for the designation of an aviation 
     safety project or aviation security project for priority 
     environmental review. Such guidelines shall provide for 
     consideration of--
       ``(i) the importance or urgency of the project;
       ``(ii) the potential for undertaking the environmental 
     review under existing emergency procedures under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.);
       ``(iii) the need for cooperation and concurrent reviews by 
     other Federal or State agencies;
       ``(iv) the prospect for undue delay if the project is not 
     designated for priority review; and
       ``(v) for aviation security projects, the views of the 
     Department of Homeland Security.
       ``(c) High Priority of and Agency Participation in 
     Coordinated Reviews.--
       ``(1) High priority for environmental reviews.--Each 
     Federal agency with jurisdiction over an environmental 
     review, analysis, opinion, permit, license, or approval shall 
     accord any such review, analysis, opinion, permit, license, 
     or approval involving an airport capacity enhancement project 
     at a congested airport or a project designated under 
     subsection (b)(2) the highest possible priority and conduct 
     the review, analysis, opinion, permit, license, or approval 
     expeditiously.
       ``(2) Agency participation.--Each Federal agency described 
     in subsection (d) shall formulate and implement 
     administrative, policy, and procedural mechanisms to enable 
     the agency to participate in the coordinated environmental 
     review process under this section and to ensure completion of 
     environmental reviews, analyses, opinions, permits, licenses, 
     and approvals described in subsection (a) in a timely and 
     environmentally responsible manner.
       ``(d) Identification of Jurisdictional Agencies.--With 
     respect to each airport capacity enhancement project at a 
     congested airport or a project designated under subsection 
     (b)(2), the Secretary shall identify, as soon as practicable, 
     all Federal and State agencies that may have jurisdiction 
     over environmental-related matters that may be affected by 
     the project or may be required by law to conduct an 
     environmental-related review or analysis of the project or 
     determine whether to issue an environmental-related permit, 
     license, or approval for the project.
       ``(e) State Authority.--Under a coordinated review process 
     being implemented under this section by the Secretary with 
     respect to a project at an airport within the boundaries of a 
     State, the Governor of the State, consistent with State law, 
     may choose to participate in such process and provide that 
     all State agencies that have jurisdiction over environmental-
     related matters that may be affected by the project or may be 
     required by law to conduct an environmental-related review or 
     analysis of the project or determine whether to issue an 
     environmental-related permit, license, or approval for the 
     project, be subject to the process.
       ``(f) Memorandum of Understanding.--The coordinated review 
     process developed under this section may be incorporated into 
     a memorandum of understanding for a project between the 
     Secretary and the heads of other Federal and State agencies 
     identified under subsection (d) with respect to the project 
     and, if applicable, the airport sponsor.
       ``(g) Use of Interagency Environmental Impact Statement 
     Teams.--
       ``(1) In general.--The Secretary may utilize an interagency 
     environmental impact statement team to expedite and 
     coordinate the coordinated environmental review process for a 
     project under this section. When utilizing an interagency 
     environmental impact statement team, the Secretary shall 
     invite Federal, State and Tribal agencies with jurisdiction 
     by law, and may invite such agencies with special expertise, 
     to participate on an interagency environmental impact 
     statement team.
       ``(2) Responsibility of interagency environmental impact 
     statement team.--Under a coordinated environmental review 
     process being implemented under this section, the interagency 
     environmental impact statement team shall assist the Federal 
     Aviation Administration in the preparation of the 
     environmental impact statement. To facilitate timely and 
     efficient environmental review, the team shall agree on 
     agency or Tribal points of contact, protocols for 
     communication among agencies, and deadlines for necessary 
     actions by each individual agency (including the review of 
     environmental analyses, the conduct of required consultation 
     and coordination, and the issuance of environmental opinions, 
     licenses, permits, and approvals). The members of the team 
     may formalize their agreement in a written memorandum.
       ``(h) Lead Agency Responsibility.--The Federal Aviation 
     Administration shall be the lead agency for projects 
     designated under subsection (b)(2) and airport capacity 
     enhancement projects at congested airports and shall be 
     responsible for defining the scope and content of

[[Page H7731]]

     the environmental impact statement, consistent with 
     regulations issued by the Council on Environmental Quality. 
     Any other Federal agency or State agency that is 
     participating in a coordinated environmental review process 
     under this section shall give substantial deference, to the 
     extent consistent with applicable law and policy, to the 
     aviation expertise of the Federal Aviation Administration.
       ``(i) Effect of Failure To Meet Deadline.--
       ``(1) Notification of congress and ceq.--If the Secretary 
     determines that a Federal agency, State agency, or airport 
     sponsor that is participating in a coordinated review process 
     under this section with respect to a project has not met a 
     deadline established under subsection (a)(3) for the project, 
     the Secretary shall notify, within 30 days of the date of 
     such determination, the Committee on Commerce, Science, and 
     Transportation of the Senate, the Committee on Transportation 
     and Infrastructure of the House of Representatives, the 
     Council on Environmental Quality, and the agency or sponsor 
     involved about the failure to meet the deadline.
       ``(2) Agency report.--Not later than 30 days after date of 
     receipt of a notice under paragraph (1), the agency or 
     sponsor involved shall submit a report to the Secretary, the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives, the Committee on Commerce, Science, and 
     Transportation of the Senate, and the Council on 
     Environmental Quality explaining why the agency or sponsor 
     did not meet the deadline and what actions it intends to take 
     to complete or issue the required review, analysis, opinion, 
     permit, license, or approval.
       ``(j) Purpose and Need.--For any environmental review, 
     analysis, opinion, permit, license, or approval that must be 
     issued or made by a Federal or State agency that is 
     participating in a coordinated review process under this 
     section and that requires an analysis of purpose and need for 
     the project, the agency, notwithstanding any other provision 
     of law, shall be bound by the project purpose and need as 
     defined by the Secretary.
       ``(k) Alternatives Analysis.--The Secretary shall determine 
     the reasonable alternatives to an airport capacity 
     enhancement project at a congested airport or a project 
     designated under subsection (b)(2). Any other Federal agency, 
     or State agency that is participating in a coordinated review 
     process under this section with respect to the project shall 
     consider only those alternatives to the project that the 
     Secretary has determined are reasonable.
       ``(l) Solicitation and Consideration of Comments.--In 
     applying subsections (j) and (k), the Secretary shall solicit 
     and consider comments from interested persons and 
     governmental entities in accordance with the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4371 et seq.).
       ``(m) Monitoring by Task Force.--The Transportation 
     Infrastructure Streamlining Task Force, established by 
     Executive Order 13274 (67 Fed. Reg. 59449; relating to 
     environmental stewardship and transportation infrastructure 
     project reviews), may monitor airport projects that are 
     subject to the coordinated review process under this section.

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

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

     ``Sec. 47173. Airport funding of FAA staff

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

     ``Sec. 47174. Authorization of appropriations

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

     ``Sec. 47175. Definitions

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

          ``SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

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

     SEC. 305. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

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

     SEC. 306. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY PROJECTS.

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

     SEC. 307. ISSUANCE OF ORDERS.

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

[[Page H7732]]

     SEC. 308. LIMITATIONS.

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

     SEC. 309. RELATIONSHIP TO OTHER REQUIREMENTS.

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

     SEC. 321. REPORT ON LONG TERM ENVIRONMENTAL IMPROVEMENTS.

       (a) In General.--The Secretary of Transportation, in 
     consultation with the Administrator of the National 
     Aeronautics and Space Administration, shall conduct a study 
     of ways to reduce aircraft noise and emissions and to 
     increase aircraft fuel efficiency. The study shall--
       (1) explore new operational procedures for aircraft to 
     achieve those goals;
       (2) identify both near term and long term options to 
     achieve those goals;
       (3) identify infrastructure changes that would contribute 
     to attainment of those goals;
       (4) identify emerging technologies that might contribute to 
     attainment of those goals;
       (5) develop a research plan for application of such 
     emerging technologies, including new 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 Secretary shall transmit a report on the 
     study to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure within 1 year after the 
     date of enactment of this Act.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary $500,000 for fiscal year 
     2004 to carry out this section.

     SEC. 322. NOISE DISCLOSURE.

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

     SEC. 323. OVERFLIGHTS OF NATIONAL PARKS.

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

     SEC. 324. NOISE EXPOSURE MAPS.

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

     SEC. 325. IMPLEMENTATION OF CHAPTER 4 NOISE STANDARDS.

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

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

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

     SEC. 327. SPECIAL RULE FOR AIRPORT IN ILLINOIS.

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

     SEC. 401. EXEMPTION FROM HOLD-IN REQUIREMENTS.

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

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

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

     SEC. 403. JOINT PROPOSALS.

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

[[Page H7733]]

     SEC. 404. ESSENTIAL AIR SERVICE AUTHORIZATION.

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

     SEC. 405. COMMUNITY AND REGIONAL CHOICE PROGRAMS.

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

     ``Sec. 41745. Community and regional choice programs

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

     SEC. 406. CODE-SHARING PILOT PROGRAM.

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

     SEC. 407. TRACKING SERVICE.

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

     ``Sec. 41746. Tracking service

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

     SEC. 408. EAS LOCAL PARTICIPATION PROGRAM.

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

     ``Sec. 41747. EAS local participation program

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

[[Page H7734]]

     from communities designated under this section.''.
       (b) Conforming Amendment.--The analysis for subchapter II 
     of chapter 417 is amended by adding at the end the following:

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

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

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

     SEC. 410. INCENTIVE PROGRAM.

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

     ``Sec. 41748. Marketing program

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

``41748. Marketing program.''.

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

       (a) Establishment.--There is established a commission to be 
     known as the ``National Commission on Small Community Air 
     Service'' (in this section referred to as the 
     ``Commission'').
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of 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 a small hub 
     airport or nonhub airport (as such terms are defined in 
     section 40102 of title 49, United States Code); 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 of the Commission 
     shall establish such panels consisting of members of the 
     Commission as the chairperson determines appropriate to carry 
     out the functions of the Commission.
       (h) Commission Personnel Matters.--
       (1) Staff.--The Commission may appoint and fix the pay of 
     such personnel as it considers appropriate.
       (2) Staff of federal agencies.--Upon request of the 
     chairperson of the Commission, the head of any department or 
     agency of the United States may detail, on a reimbursable 
     basis, any of the personnel of that department or agency to 
     the Commission to assist it in carrying out its duties under 
     this section.
       (3) Other staff and support.--Upon the request of the 
     Commission, or a panel of the Commission, the Secretary shall 
     provide the Commission or panel with professional and 
     administrative staff and other support, on a reimbursable 
     basis, to assist the Commission or panel in carrying out its 
     responsibilities.
       (i) Obtaining Official Data.--The Commission may secure 
     directly from any department or agency of the United States 
     information (other than information required by any statute 
     of the United States to be kept confidential by such 
     department or agency) necessary for the Commission to carry 
     out its duties under this section. Upon request of the 
     chairperson of the Commission, the head of that department or 
     agency shall furnish such nonconfidential information to the 
     Commission.
       (j) Termination.--The Commission shall terminate on the 
     30th day following the date of transmittal of the report 
     under subsection (f).
       (k) Applicability of the Federal Advisory Committee Act.--
     The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the Commission.

[[Page H7735]]

       (l) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary $250,000 to be used to 
     fund the Commission.

     SEC. 412. SMALL COMMUNITY AIR SERVICE.

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

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

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

     SEC. 422. DELAY REDUCTION ACTIONS.

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

     ``Sec. 41722. Delay reduction actions

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

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

     SEC. 423. COLLABORATIVE DECISIONMAKING PILOT PROGRAM.

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

     ``Sec. 40129. Collaborative decisionmaking pilot program

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


[[Page H7736]]


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

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

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

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

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

     SEC. 426. DEFINITION OF COMMUTER AIRCRAFT.

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

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

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

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

       Section 145(c) of the Aviation and Transportation Security 
     Act of 2001 (49 U.S.C. 40101 note) is amended by striking 
     ``more than'' and all that follows through ``after'' and 
     inserting ``more than 36 months after''.
                        TITLE V--AVIATION SAFETY

     SEC. 501. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS 
                   VIOLATIONS.

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

     SEC. 502. RUNWAY SAFETY STANDARDS.

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

     ``Sec. 44727. Runway safety areas

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

``44727. Runway safety areas.''.

     SEC. 503. CIVIL PENALTIES.

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

[[Page H7737]]

       ``(B) $400,000 if the violation was committed by a person 
     other than an individual or small business concern on or 
     after that date; or
       ``(C) $50,000 if the violation was committed by an 
     individual or small business concern on or after that 
     date.''.
       (c) Small Business Concern Defined.--Section 46301 is 
     amended by adding at the end the following:
       ``(i) Small Business Concern Defined.--In this section, the 
     term `small business concern' has the meaning given that term 
     in section 3 of the Small Business Act (15 U.S.C. 632).''.
       (d) Conforming Amendments.--Title 49 is amended--
       (1) in section 41705(b) by striking ``46301(a)(3)(E)'' and 
     inserting ``46301''; and
       (2) in section 46304(a) by striking ``, (2), or (3)''.

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

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

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

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

     SEC. 506. FAA INSPECTOR TRAINING.

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

     SEC. 507. AIR TRANSPORTATION OVERSIGHT SYSTEM PLAN.

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

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

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

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

       ``(a) Orders.--The Administrator of Federal Aviation 
     Administration shall issue an order amending, modifying, 
     suspending, or revoking any part of a certificate issued 
     under this title if the Administrator is notified by the 
     Under Secretary for Border and Transportation Security of the 
     Department of Homeland Security that the holder of the 
     certificate poses, or is suspected of posing, a risk of air 
     piracy or terrorism or a threat to airline or passenger 
     safety. If requested by the Under Secretary, the order shall 
     be effective immediately.
       ``(b) Hearings for Citizens.--An individual who is a 
     citizen of the United States who is adversely affected by an 
     order of the Administrator under subsection (a) is entitled 
     to a hearing on the record.
       ``(c) Hearings.--When conducting a hearing under this 
     section, the administrative law judge shall not be bound by 
     findings of fact or interpretations of laws and regulations 
     of the Administrator or the Under Secretary.
       ``(d) Appeals.--An appeal from a decision of an 
     administrative law judge as the result of a hearing under 
     subsection (b) shall be made to the Transportation Security 
     Oversight Board established by section 115. The Board shall 
     establish a panel to review the decision. The members of this 
     panel (1) shall not be employees of the Transportation 
     Security Administration, (2) shall have the level of security 
     clearance needed to review the determination made under this 
     section, and (3) shall be given access to all relevant 
     documents that support that determination. The panel may 
     affirm, modify, or reverse the decision.
       ``(e) Review.--A person substantially affected by an action 
     of a panel under subsection (d), or the Under Secretary when 
     the Under Secretary decides that the action of the panel 
     under this section will have a significant adverse impact on 
     carrying out this part, may obtain review of the order under 
     section 46110. The Under Secretary and the Administrator 
     shall be made a party to the review proceedings. Findings of 
     fact of the panel are conclusive if supported by substantial 
     evidence.
       ``(f) Explanation of Decisions.--An individual who 
     commences an appeal under this section shall receive a 
     written explanation of the basis for the determination or 
     decision and all relevant documents that support that 
     determination to the maximum extent that the national 
     security interests of the United States and other applicable 
     laws permit.
       ``(g) Classified Evidence.--
       ``(1) In general.--The Under Secretary, in consultation 
     with the Administrator and the Director of Central 
     Intelligence, shall issue regulations to establish procedures 
     by which the Under Secretary, as part of a hearing conducted 
     under this section, may provide an unclassified summary of 
     classified evidence upon which the

[[Page H7738]]

     order of the Administrator was based to the individual 
     adversely affected by the order.
       ``(2) Review of classified evidence by administrative law 
     judge.--
       ``(A) Review.--As part of a hearing conducted under this 
     section, if the order of the Administrator issued under 
     subsection (a) is based on classified information (as defined 
     in section 1(a) of the Classified Information Procedures Act 
     (18 U.S.C. App.), such information may be submitted by the 
     Under Secretary to the reviewing administrative law judge, 
     pursuant to appropriate security procedures, and shall be 
     reviewed by the administrative law judge ex parte and in 
     camera.
       ``(B) Security clearances.--Pursuant to existing procedures 
     and requirements, the Under Secretary shall, in coordination, 
     as necessary, with the heads of other affected departments or 
     agencies, ensure that administrative law judges reviewing 
     orders of the Administrator under this section possess 
     security clearances appropriate for their work under this 
     section.
       ``(3) Unclassified summaries of classified evidence.--As 
     part of a hearing conducted under this section and upon the 
     request of the individual adversely affected by an order of 
     the Administrator under subsection (a), the Under Secretary 
     shall provide to the individual and reviewing administrative 
     law judge, consistent with the procedures established under 
     paragraph (1), an unclassified summary of any classified 
     information upon which the order of the Administrator is 
     based.''.
       (b) Conforming Amendment.--The analysis for chapter 461 is 
     amended by adding at the end the following:

``46111. Certificate actions in response to a security threat.''.
       (c) Review.--The first sentence of section 46110(a) is 
     amended by striking ``part'' and inserting ``subtitle''.

     SEC. 602. JUSTIFICATION FOR AIR DEFENSE IDENTIFICATION ZONE.

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

     SEC. 603. CREW TRAINING.

       Section 44918 is amended to read as follows:

     ``Sec. 44918. Crew training

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

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

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

     SEC. 605. AIRPORT SECURITY IMPROVEMENT PROJECTS.

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

     ``Sec. 44923. Airport security improvement projects

       ``(a) Grant Authority.--Subject to the requirements of this 
     section, the Under Secretary for Border and Transportation 
     Security of the Department of Homeland Security may make 
     grants to airport sponsors--
       ``(1) for projects to replace baggage conveyer systems 
     related to aviation security;
       ``(2) for projects to reconfigure terminal baggage areas as 
     needed to install explosive detection systems;
       ``(3) for projects to enable the Under Secretary to deploy 
     explosive detection systems behind the

[[Page H7739]]

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

     SEC. 606. CHARTER SECURITY.

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

     SEC. 607. CAPPS2.

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

     SEC. 608. REPORT ON PASSENGER PRESCREENING PROGRAM.

       (a) In General.--Within 90 days after the date of enactment 
     of this Act, the Secretary of Homeland Security, after 
     consultation with the Attorney General, shall submit a report 
     in writing to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure on the potential impact of 
     the Transportation Security Administration's proposed 
     Computer Assisted Passenger Prescreening system, commonly 
     known as CAPPS2, on the privacy and civil liberties of United 
     States citizens.
       (b) Specific Issues To Be Addressed.--The report shall 
     address the following:
       (1) Whether and for what period of time data gathered on 
     individual travelers will be retained, who will have access 
     to such data, and who will make decisions concerning access 
     to such data.
       (2) How the Transportation Security Administration will 
     treat the scores assigned to individual travelers to measure 
     the likelihood they may pose a security threat, including how 
     long such scores will be retained and whether and under what 
     circumstances they may be shared with other governmental, 
     nongovernmental, or commercial entities.
       (3) The role airlines and outside vendors or contractors 
     will have in implementing and operating the system, and to 
     what extent will they have access, or the means to obtain 
     access, to data, scores, or other information generated by 
     the system.

[[Page H7740]]

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

     SEC. 609. ARMING CARGO PILOTS AGAINST TERRORISM.

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

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

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

     SEC. 611. FOREIGN REPAIR STATIONS.

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

     ``Sec. 44924. Repair station security

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

``44924. Repair station security.''.

     SEC. 612. FLIGHT TRAINING.

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

     ``Sec. 44939. Training to operate certain aircraft

       ``(a) Waiting Period.--A person operating as a flight 
     instructor, pilot school, or aviation training center or 
     subject to regulation under this part may provide training in 
     the operation of any aircraft having a maximum certificated 
     takeoff weight of more than 12,500 pounds to an alien (as 
     defined in section 101(a)(3) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(3))) or to any other 
     individual specified by the Secretary of Homeland Security 
     only if--
       ``(1) that person has first notified the Secretary that the 
     alien or individual has requested such training and submitted 
     to the Secretary, in such form as the Secretary may 
     prescribe, the following information about the alien or 
     individual:
       ``(A) full name, including any aliases used by the 
     applicant or variations in spelling of the applicant's name;
       ``(B) passport and visa information;
       ``(C) country of citizenship;
       ``(D) date of birth;
       ``(E) dates of training; and
       ``(F) fingerprints collected by, or under the supervision 
     of, a Federal, State, or local law enforcement agency or by 
     another entity approved by the Federal Bureau of 
     Investigation or the Secretary of Homeland Security, 
     including fingerprints taken by United States Government 
     personnel at a United States embassy or consulate; and
       ``(2) the Secretary has not directed, within 30 days after 
     being notified under paragraph (1), that person not to 
     provide the requested training because the Secretary has 
     determined that the individual presents a risk to aviation or 
     national security.
       ``(b) Interruption of Training.--If the Secretary of 
     Homeland Security, more than 30 days after receiving 
     notification under subsection (a) from a person providing 
     training described in subsection (a), determines that the 
     individual presents a risk to aviation or national security, 
     the Secretary shall immediately notify the person providing 
     the training of the determination and that person shall 
     immediately terminate the training.
       ``(c) Notification.--A person operating as a flight 
     instructor, pilot school, or aviation training center or 
     subject to regulation under this part may provide training in 
     the operation of any aircraft having a maximum certificated 
     takeoff weight of 12,500 pounds or less to an alien (as 
     defined in section 101(a)(3) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(3))) or to any other 
     individual specified by the Secretary of Homeland Security 
     only if that person has notified the Secretary that the 
     individual has requested such training and furnished the 
     Secretary with that individual's identification in such form 
     as the Secretary may require.
       ``(d) Expedited Processing.--Not later than 60 days after 
     the date of enactment of this section, the Secretary shall 
     establish a process to ensure that the waiting period under 
     subsection (a) shall not exceed 5 days for an alien (as 
     defined in section 101(a)(3) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(3))) who--
       ``(1) holds an airman's certification of a foreign country 
     that is recognized by an agency of the United States, 
     including a military agency, that permits an individual to 
     operate a multi-engine aircraft that has a certificated 
     takeoff weight of more than 12,500 pounds;
       ``(2) is employed by a foreign air carrier that is 
     certified under part 129 of title 14, Code of Federal 
     Regulations, and that has a security program approved under 
     section 1546 of title 49, Code of Federal Regulations;
       ``(3) is an individual that has unescorted access to a 
     secured area of an airport designated under section 
     44936(a)(1)(A)(ii); or
       ``(4) is an individual that is part of a class of 
     individuals that the Secretary has determined that providing 
     aviation training to presents minimal risk to aviation or 
     national security because of the aviation training already 
     possessed by such class of individuals.

[[Page H7741]]

       ``(e) Training.--In subsection (a), the term `training' 
     means training received from an instructor in an aircraft or 
     aircraft simulator and does not include recurrent training, 
     ground training, or demonstration flights for marketing 
     purposes.
       ``(f) Nonapplicability to Certain Foreign Military 
     Pilots.--The procedures and processes required by subsections 
     (a) through (d) shall not apply to a foreign military pilot 
     endorsed by the Department of Defense for flight training in 
     the United States and seeking training described in 
     subsection (e) in the United States.
       ``(g) Fee.--
       ``(1) In general.--The Secretary of Homeland Security may 
     assess a fee for an investigation under this section, which 
     may not exceed $100 per individual (exclusive of the cost of 
     transmitting fingerprints collected at overseas facilities) 
     during fiscal years 2003 and 2004. For fiscal year 2005 and 
     thereafter, the Secretary may adjust the maximum amount of 
     the fee to reflect the costs of such an investigation.
       ``(2) Offset.--Notwithstanding section 3302 of title 31, 
     any fee collected under this section--
       ``(A) shall be credited to the account in the Treasury from 
     which the expenses were incurred and shall be available to 
     the Secretary for those expenses; and
       ``(B) shall remain available until expended.
       ``(h) Interagency Cooperation.--The Attorney General, the 
     Director of Central Intelligence, and the Administrator of 
     the Federal Aviation Administration shall cooperate with the 
     Secretary in implementing this section.
       ``(i) Security Awareness Training for Employees.--The 
     Secretary shall require flight schools to conduct a security 
     awareness program for flight school employees to increase 
     their awareness of suspicious circumstances and activities of 
     individuals enrolling in or attending flight school.''.
       (b) Procedures.--
       (1) In general.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall promulgate an interim final rule to implement section 
     44939 of title 49, United States Code, as amended by 
     subsection (a).
       (2) Use of overseas facilities.--In order to implement 
     section 44939 of title 49, United States Code, as amended by 
     subsection (a), United States Embassies and Consulates that 
     possess appropriate fingerprint collection equipment and 
     personnel certified to capture fingerprints shall provide 
     fingerprint services to aliens covered by that section if the 
     Secretary requires fingerprints in the administration of that 
     section, and shall transmit the fingerprints to the Secretary 
     or other agency designated by the Secretary. The Attorney 
     General and the Secretary of State shall cooperate with the 
     Secretary of Homeland Security in carrying out this 
     paragraph.
       (3) Use of united states facilities.--If the Secretary of 
     Homeland Security requires fingerprinting in the 
     administration of section 44939 of title 49, United States 
     Code, the Secretary may designate locations within the United 
     States that will provide fingerprinting services to 
     individuals covered by that section.
       (c) Effective Date.--The amendment made by subsection (a) 
     takes effect on the effective date of the interim final rule 
     required by subsection (b)(1).
       (d) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the Senate Committee on Commerce, Science, 
     and Transportation and the House of Representatives Committee 
     on Transportation and Infrastructure a report on the 
     effectiveness of the activities carried out under section 
     44939 of title 49, United States Code, in reducing risks to 
     aviation security and national security.

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

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

     SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

       Section 48102(a) of title 49, United States Code, is 
     amended--
       (1) by striking ``to carry out sections 44504'' and 
     inserting ``for conducting civil aviation research and 
     development under sections 44504'';
       (2) by striking ``and'' at the end of paragraph (7);
       (3) by striking the period at the end of paragraph (8) and 
     inserting a semicolon; and
       (4) by adding at the end the following new paragraphs:
       ``(9) for fiscal year 2004, $346,317,000, including--
       ``(A) $65,000,000 for Improving Aviation Safety;
       ``(B) $24,000,000 for Weather Safety Research;
       ``(C) $27,500,000 for Human Factors and Aeromedical 
     Research;
       ``(D) $30,000,000 for Environmental Research and 
     Development, of which $20,000,000 shall be for research 
     activities related to reducing community exposure to civilian 
     aircraft noise or emissions;
       ``(E) $7,000,000 for Research Mission Support;
       ``(F) $10,000,000 for the Airport Cooperative Research 
     Program;
       ``(G) $1,500,000 for carrying out subsection (h) of this 
     section;
       ``(H) $42,800,000 for Advanced Technology Development and 
     Prototyping;
       ``(I) $30,300,000 for Safe Flight 21;
       ``(J) $90,800,000 for the Center for Advanced Aviation 
     System Development;
       ``(K) $9,667,000 for Airports Technology-Safety; and
       ``(L) $7,750,000 for Airports Technology-Efficiency;
       ``(10) for fiscal year 2005, $356,192,000, including--
       ``(A) $65,705,000 for Improving Aviation Safety;
       ``(B) $24,260,000 for Weather Safety Research;
       ``(C) $27,800,000 for Human Factors and Aeromedical 
     Research;
       ``(D) $30,109,000 for Environmental Research and 
     Development, of which $20,000,000 shall be for research 
     activities related to reducing community exposure to civilian 
     aircraft noise or emissions;
       ``(E) $7,076,000 for Research Mission Support;
       ``(F) $10,000,000 for the Airport Cooperative Research 
     Program;
       ``(G) $1,650,000 for carrying out subsection (h) of this 
     section;
       ``(H) $43,300,000 for Advanced Technology Development and 
     Prototyping;
       ``(I) $31,100,000 for Safe Flight 21;
       ``(J) $95,400,000 for the Center for Advanced Aviation 
     System Development;
       ``(K) $2,200,000 for Free Flight Phase 2;
       ``(L) $9,764,000 for Airports Technology-Safety; and
       ``(M) $7,828,000 for Airports Technology-Efficiency;
       ``(11) for fiscal year 2006, $352,157,000, including--
       ``(A) $66,447,000 for Improving Aviation Safety;
       ``(B) $24,534,000 for Weather Safety Research;
       ``(C) $28,114,000 for Human Factors and Aeromedical 
     Research;
       ``(D) $30,223,000 for Environmental Research and 
     Development, of which $20,000,000 shall be for research 
     activities related to reducing community exposure to civilian 
     aircraft noise or emissions;
       ``(E) $7,156,000 for Research Mission Support;
       ``(F) $10,000,000 for the Airport Cooperation Research 
     Program;
       ``(G) $1,815,000 for carrying out subsection (h) of this 
     section;
       ``(H) $42,200,000 for Advanced Technology Development and 
     Prototyping;
       ``(I) $23,900,000 for Safe Flight 21;
       ``(J) $100,000,000 for the Center for Advanced Aviation 
     System Development;
       ``(K) $9,862,000 for Airports Technology-Safety; and
       ``(L) $7,906,000 for Airports Technology-Efficiency; and
       ``(12) for fiscal year 2007, $356,261,000, including--
       ``(A) $67,244,000 for Improving Aviation Safety;
       ``(B) $24,828,000 for Weather Safety Research;
       ``(C) $28,451,000 for Human Factors and Aeromedical 
     Research;
       ``(D) $30,586,000 for Environmental Research and 
     Development, of which $20,000,000 shall be for research 
     activities related to reducing community exposure to civilian 
     aircraft noise or emissions;
       ``(E) $7,242,000 for Research Mission Support;
       ``(F) $10,000,000 for the Airport Cooperation Research 
     Program;
       ``(G) $1,837,000 for carrying out subsection (h) of this 
     section;
       ``(H) $42,706,000 for Advanced Technology Development and 
     Prototyping;
       ``(I) $24,187,000 for Safe Flight 21;
       ``(J) $101,200,000 for the Center for Advanced Aviation 
     System Development;
       ``(K) $9,980,000 for Airports Technology-Safety; and
       ``(L) $8,000,000 for Airports Technology-Efficiency.''.

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

       (a)(1) The Administrator of the Federal Aviation 
     Administration shall establish a Federal Aviation 
     Administration Science and Technology Scholarship Program to 
     award scholarships to individuals that is designed to recruit 
     and prepare students for careers in the Federal Aviation 
     Administration.
       (2) Individuals shall be selected to receive scholarships 
     under this section through a competitive process primarily on 
     the basis of academic merit, with consideration given to 
     financial need and the goal of promoting the participation of 
     individuals identified in section 33 or 34 of the Science and 
     Engineering Equal Opportunities Act.
       (3) To carry out the Program the Administrator shall enter 
     into contractual agreements with individuals selected under 
     paragraph (2) under which the individuals agree to serve as 
     full-time employees of the Federal Aviation Administration, 
     for the period described in subsection (f)(1), in positions 
     needed by the Federal Aviation Administration and for which 
     the individuals are qualified, in exchange for receiving a 
     scholarship.
       (b) In order to be eligible to participate in the Program, 
     an individual must--
       (1) be enrolled or accepted for enrollment as a full-time 
     student at an institution of higher education, as a junior or 
     senior undergraduate or graduate student, in an academic 
     field or discipline described in the list made available 
     under subsection (d);
       (2) be a United States citizen or permanent resident; and
       (3) at the time of the initial scholarship award, not be an 
     employee (as defined in section 2105 of title 5, United 
     States Code).
       (c) An individual seeking a scholarship under this section 
     shall submit an application to the Administrator at such 
     time, in such manner, and containing such information, 
     agreements, or assurances as the Administrator may require.
       (d) The Administrator shall make publicly available a list 
     of academic programs and fields of study for which 
     scholarships under the Program may be utilized and shall 
     update the list as necessary.

[[Page H7742]]

       (e)(1) The Administrator may provide a scholarship under 
     the Program for an academic year if the individual applying 
     for the scholarship has submitted to the Administrator, as 
     part of the application required under subsection (c), a 
     proposed academic program leading to a degree in a program or 
     field of study on the list made available under subsection 
     (d).
       (2) An individual may not receive a scholarship under this 
     section for more than 4 academic years, unless the 
     Administrator grants a waiver.
       (3) The dollar amount of a scholarship under this section 
     for an academic year shall be determined under regulations 
     issued by the Administrator, but shall in no case exceed the 
     cost of attendance.
       (4) A scholarship provided under this section may be 
     expended for tuition, fees, and other authorized expenses as 
     established by the Administrator by regulation.
       (5) The Administrator may enter into a contractual 
     agreement with an institution of higher education under which 
     the amounts provided for a scholarship under this section for 
     tuition, fees, and other authorized expenses are paid 
     directly to the institution with respect to which the 
     scholarship is provided.
       (f)(1) The period of service for which an individual shall 
     be obligated to serve as an employee of the Federal Aviation 
     Administration is, except as provided in subsection (h)(2), 
     24 months for each academic year for which a scholarship 
     under this section is provided.
       (2)(A) Except as provided in subparagraph (B), obligated 
     service under paragraph (1) shall begin not later than 60 
     days after the individual obtains the educational degree for 
     which the scholarship was provided.
       (B) The Administrator may defer the obligation of an 
     individual to provide a period of service under paragraph (1) 
     if the Administrator determines that such a deferral is 
     appropriate. The Administrator shall prescribe the terms and 
     conditions under which a service obligation may be deferred 
     through regulation.
       (g)(1) Scholarship recipients who fail to maintain a high 
     level of academic standing, as defined by the Administrator 
     by regulation, who are dismissed from their educational 
     institutions for disciplinary reasons, or who voluntarily 
     terminate academic training before graduation from the 
     educational program for which the scholarship was awarded, 
     shall be in breach of their contractual agreement and, in 
     lieu of any service obligation arising under such agreement, 
     shall be liable to the United States for repayment within 1 
     year after the date of default of all scholarship funds paid 
     to them and to the institution of higher education on their 
     behalf under the agreement, except as provided in subsection 
     (h)(2). The repayment period may be extended by the 
     Administrator when determined to be necessary, as established 
     by regulation.
       (2) Scholarship recipients who, for any reason, fail to 
     begin or complete their service obligation after completion 
     of academic training, or fail to comply with the terms and 
     conditions of deferment established by the Administrator 
     pursuant to subsection (f)(2)(B), shall be in breach of their 
     contractual agreement. When recipients breach their 
     agreements for the reasons stated in the preceding sentence, 
     the recipient shall be liable to the United States for an 
     amount equal to--
       (A) the total amount of scholarships received by such 
     individual under this section; plus
       (B) the interest on the amounts of such awards which would 
     be payable if at the time the awards were received they were 
     loans bearing interest at the maximum legal prevailing rate, 
     as determined by the Treasurer of the United States,
     multiplied by 3.
       (h)(1) Any obligation of an individual incurred under the 
     Program (or a contractual agreement thereunder) for service 
     or payment shall be canceled upon the death of the 
     individual.
       (2) The Administrator shall by regulation provide for the 
     partial or total waiver or suspension of any obligation of 
     service or payment incurred by an individual under the 
     Program (or a contractual agreement thereunder) whenever 
     compliance by the individual is impossible or would involve 
     extreme hardship to the individual, or if enforcement of such 
     obligation with respect to the individual would be contrary 
     to the best interests of the Government.
       (i) For purposes of this section--
       (1) the term ``cost of attendance'' has the meaning given 
     that term in section 472 of the Higher Education Act of 1965;
       (2) the term ``institution of higher education'' has the 
     meaning given that term in section 101(a) of the Higher 
     Education Act of 1965; and
       (3) the term ``Program'' means the Federal Aviation 
     Administration Science and Technology Scholarship Program 
     established under this section.
       (j)(1) There is authorized to be appropriated to the 
     Federal Aviation Administration for the Program $10,000,000 
     for each fiscal year.
       (2) Amounts appropriated under this section shall remain 
     available for 2 fiscal years.
       (k) The Administrator may provide temporary internships to 
     full-time students enrolled in an undergraduate or post-
     graduate program leading to an advanced degree in an 
     aerospace-related or aviation safety-related field of 
     endeavor.

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

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

[[Page H7743]]

     of any obligation of service or payment incurred by an 
     individual under the Program (or a contractual agreement 
     thereunder) whenever compliance by the individual is 
     impossible or would involve extreme hardship to the 
     individual, or if enforcement of such obligation with respect 
     to the individual would be contrary to the best interests of 
     the Government.
       (i) For purposes of this section--
       (1) the term ``cost of attendance'' has the meaning given 
     that term in section 472 of the Higher Education Act of 1965;
       (2) the term ``institution of higher education'' has the 
     meaning given that term in section 101(a) of the Higher 
     Education Act of 1965; and
       (3) the term ``Program'' means the National Aeronautics and 
     Space Administration Science and Technology Scholarship 
     Program established under this section.
       (j)(1) There is authorized to be appropriated to the 
     National Aeronautics and Space Administration for the Program 
     $10,000,000 for each fiscal year.
       (2) Amounts appropriated under this section shall remain 
     available for 2 fiscal years.
       (k) The Administrator may provide temporary internships to 
     full-time students enrolled in an undergraduate or post-
     graduate program leading to an advanced degree in an 
     aerospace-related or aviation safety-related field of 
     endeavor.

     SEC. 704. RESEARCH PROGRAM TO IMPROVE AIRFIELD PAVEMENTS.

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

     SEC. 705. ENSURING APPROPRIATE STANDARDS FOR AIRFIELD 
                   PAVEMENTS.

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

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

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

     SEC. 707. RESEARCH ON AVIATION TRAINING.

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

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

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

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

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

[[Page H7744]]

       (2) annually at the time of the President's budget request, 
     a report describing the progress in carrying out the plan 
     required under subsection (b) and any changes to that plan.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Office $50,000,000 for each of the 
     fiscal years 2004 through 2010.

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

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

     SEC. 711. ROTORCRAFT RESEARCH AND DEVELOPMENT INITIATIVE.

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

     SEC. 712. AIRPORT COOPERATIVE RESEARCH PROGRAM.

       Section 44511 of title 49, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(f) Airport Cooperative Research Program.--
       ``(1) Establishment.--The Secretary of Transportation shall 
     establish a 4-year pilot airport cooperative research program 
     to--
       ``(A) identify problems that are shared by airport 
     operating agencies and can be solved through applied research 
     but that are not being adequately addressed by existing 
     Federal research programs; and
       ``(B) fund research to address those problems.
       ``(2) Governance.--The Secretary of Transportation shall 
     appoint an independent governing board for the research 
     program established under this subsection. The governing 
     board shall be appointed from candidates nominated by 
     national associations representing public airport operating 
     agencies, airport executives, State aviation officials, and 
     the scheduled airlines, and shall include representatives of 
     appropriate Federal agencies. Section 14 of the Federal 
     Advisory Committee Act shall not apply to the governing 
     board.
       ``(3) Implementation.--The Secretary of Transportation 
     shall enter into an arrangement with the National Academy of 
     Sciences to provide staff support to the governing board 
     established under paragraph (2) and to carry out projects 
     proposed by the governing board that the Secretary considers 
     appropriate.
       ``(4) Report.--Not later than 6 months after the expiration 
     of the program under this subsection, the Secretary shall 
     transmit to the Congress a report on the program, including 
     recommendations as to the need for establishing a permanent 
     airport cooperative research program.''.
                       TITLE VIII--MISCELLANEOUS

     SEC. 801. DEFINITIONS.

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

     SEC. 802. REPORT ON AVIATION SAFETY REPORTING SYSTEM.

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

     SEC. 803. ANCHORAGE AIR TRAFFIC CONTROL.

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

     SEC. 804. EXTENSION OF METROPOLITAN WASHINGTON AIRPORTS 
                   AUTHORITY.

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

     SEC. 805. IMPROVEMENT OF AVIATION INFORMATION COLLECTION.

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

     SEC. 806. GOVERNMENT-FINANCED AIR TRANSPORTATION.

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

     SEC. 807. AIR CARRIER CITIZENSHIP.

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

[[Page H7745]]

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

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

     SEC. 809. AVAILABILITY OF AIRCRAFT ACCIDENT SITE INFORMATION.

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

     SEC. 810. NOTICE CONCERNING AIRCRAFT ASSEMBLY.

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

     ``Sec. 41723. Notice concerning aircraft assembly

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

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

     SEC. 811. TYPE CERTIFICATES.

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

     SEC. 812. RECIPROCAL AIRWORTHINESS CERTIFICATION.

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

     SEC. 813. INTERNATIONAL ROLE OF THE FAA.

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

     SEC. 814. FLIGHT ATTENDANT CERTIFICATION.

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

     ``Sec. 44729. Flight attendant certification

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

``44729. Flight attendant certification.''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on the 365th day following the date 
     of enactment of this Act.

[[Page H7746]]

     SEC. 815. AIR QUALITY IN AIRCRAFT CABINS.

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

     SEC. 816. RECOMMENDATIONS CONCERNING TRAVEL AGENTS.

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

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

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

     Such term includes fixed based operators, flight schools, 
     manufacturers of general aviation aircraft and products, 
     persons engaged in nonscheduled aviation enterprises, and 
     general aviation independent contractors.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000. 
     Such sums shall remain available until expended.

     SEC. 818. INTERNATIONAL AIR SHOW.

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

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

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

     SEC. 820. INTERNATIONAL AIR TRANSPORTATION.

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

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

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

     SEC. 822. CHARTER AIRLINES.

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

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

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

     SEC. 824. REVIEW OF AIR CARRIER COMPENSATION.

       Not later than 6 months after the date of enactment of this 
     Act, the Comptroller General shall submit to Congress a 
     report on the criteria and procedures used by the Secretary 
     of Transportation under the Air Transportation Safety and 
     System Stabilization Act (Public Law 107-42) to compensate 
     air carriers after the terrorist attack of September 11, 
     2001, with a particular focus on whether it is appropriate--
       (1) to compensate air carriers for the decrease in value of 
     their aircraft after September 11, 2001; and

[[Page H7747]]

       (2) to ensure that comparable air carriers receive 
     comparable percentages of the maximum compensation payable 
     under section 103(b)(2) of such Act (49 U.S.C. 40101 note).

     SEC. 825. NOISE CONTROL PLAN FOR CERTAIN AIRPORTS.

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

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

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

     SEC. 827. PRIVATE AIR CARRIAGE IN ALASKA.

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

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

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

     SEC. 829. NAVIGATION FEES.

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

     SEC. 901. EXTENSION OF EXPENDITURE AUTHORITY.

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

     SEC. 902. TECHNICAL CORRECTION TO FLIGHT SEGMENT.

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

     From the Committee on Transportation and Infrastructure, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Don Young,
     John L. Mica,
     Vernon J. Ehlers,
     Robin Hayes,
     Denny Rehberg,
     Johnny Isakson,
     From the Committee on Energy and Commerce, for consideration 
     of sec. 521 of the House bill and sec. 508 of the Senate 
     amendment, and modifications committed to conference:
     Billy Tauzin,
     Joe Barton,
     From the Committee on Government Reform, for consideration of 
     secs. 404 and 438 of the House bill and sec. 108 of the 
     Senate amendment, and modifications committed to conference:
     Tom Davis,
     Christopher Shays,
     From the Committee on the Judiciary, for consideration of 
     secs. 106, 301, 405, 505, and 507 of the Senate amendment, 
     and modifications committed to conference:
     F. James Sensenbrenner,
     Howard Coble,
     From the Committee on Resources, for consideration of secs. 
     204 and 409 of the House bill and sec. 201 of the Senate 
     amendment, and modifications committed to conference:
     Richard Pombo,
     Jim Gibbons,
     Provided that Mr. Renzi is appointed in lieu of Mr. Pombo for 
     consideration of sec. 409 of the House bill, and 
     modifications committed to conference:
     Rick Renzi,
     From the Committee on Science, for consideration of sec. 102 
     of the House bill and secs. 102, 104, 621, 622, 641, 642, 
     661, 662, 663, 667, and 669 of the Senate amendment, and 
     modifications committed to conference:
     Sherwood Boehlert,
     Dana Rohrabacher,
     From the Committee on Ways and Means, for consideration of 
     title VI of the House bill and title VII of the Senate 
     amendment, and modifications committed to conference:
     William Thomas,
     Dave Camp,
                                Managers on the Part of the House.

     John McCain,
     Ted Stevens,
     Conrad Burns,
     Trent Lott,
     Kay Bailey Hutchison,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the Bill (H.R. 2115), to amend 
     title 49, United States Code, to reauthorize programs for the 
     Federal Aviation Administration, and for other purposes, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for

[[Page H7748]]

     clerical corrections, conforming changes made necessary by 
     agreements reached by the conferees, and minor drafting and 
     clarifying changes.


                             1. SHORT TITLE

     House bill
       ``Flight 100-Century of Aviation Reauthorization Act''.
     Senate Amendment
       ``Aviation Investment and Revitalization Vision Act''.
     Conference substitute
       ``Vision 100--Century of Aviation Reauthorization Act''.


                       2. LENGTH OF AUTHORIZATION

     House bill
       4 years.
     Senate amendment
       3 years.
     Conference substitute
       House bill.


                              3. FINDINGS

     House bill
       No provision.
     Senate amendment
       Contains findings about the importance of aviation and the 
     need to invest more into it.
     Conference substitute
       Contains some of the findings in the Senate amendment.


                           4. FAA OPERATIONS

     House bill
       Authorizes $7.591 billion in 2004, $7.732 billion in 2005, 
     $7.889 billion in 2006, and $8,064 billion in 2007 for the 
     operating costs of the FAA.
     Senate amendment
       Authorizes same amount for first 3 years. No authorization 
     for 2007.
     Conference substitute
       House bill.


                        5. faa training facility

     House bill
       Authorizes some of this money to be used to fully utilize 
     the FAA's Palm Coast management training facility.
     Senate amendment
       No provision.
     Conference substitute
       House bill funded out of the Operations account. Conferees 
     agreed to authorize funding for the FAA Center for Management 
     Development to operate training courses and to support 
     associated student travel for both residential and field 
     courses.


                   6. aerospace and aviation liaison

     House bill
       Directs the President to establish a task force to look for 
     ways to ensure that technology developed for military 
     aircraft is more quickly and easily transferred to 
     applications for improving and modernizing the fleet of 
     civilian aircraft.
     Senate amendment
       Establishes an office in DOT to coordinate research, 
     development of new technologies, transfer of technology from 
     research done by NASA and DOD to the private sector, review 
     activities related to noise and emissions. One time and 
     annual report required. $2 million is authorized over 2 
     years.
     Conference substitute
       Assigns the newly established Air Transportation System 
     Joint Planning and Development Office (item #8) 
     responsibility to facilitate the transfer of technology from 
     research programs such as those managed by the National 
     Aeronautics and Space Administration and the Department of 
     Defense Advanced Research Projects Agency to Federal agencies 
     with operational responsibilities, and to the private sector.


         7. competitiveness of u.s. jet transportation industry

     House bill
       No provision.
     Senate amendment
       Within 6 months the office established above shall report 
     on the market developments and government policies 
     influencing U.S. competitiveness.
     Conference substitute
       Senate Amendment with modifications.


             8. next generation air traffic control office

     House bill
       Authorizes some of this money to be used to establish an 
     office in the FAA to develop and plan for the implementation 
     of the next generation air traffic control system.
     Senate amendment
       Similar provision but sets forth in greater detail the 
     duties of the office. Authorizes $300 million over 7 years. 
     Head of office reports directly to the Administrator.
     Conference substitute
       Establishes a Next Generation Air Transportation System 
     Joint Planning and Development Office. Requires the office to 
     produce an integrated research and development plan to meet 
     air transportation needs in the year 2025. Requires the plan 
     to be transmitted to Congress within one year after the date 
     of enactment, and an annual update describing the progress in 
     carrying out the plan. Authorizes $50 million a year through 
     FY 2010.


          9. task force on future of air transportation system

     House bill
       Implements the recommendation of the National Commission on 
     the Future of the Aerospace Industry and requires the 
     President to establish a Task Force to develop an integrated 
     plan to transform the Nation's air traffic control and air 
     transportation system to meet its future needs.
     Senate amendment
       No provision.
     Conference substitute
       Requires the Secretary of Transportation to establish a 
     Next Generation Air Transportation Senior Policy Committee to 
     work with the Joint Planning and Development Office. Members 
     shall be the Administrator or designee from NASA and FAA, the 
     Secretary of Defense, Secretary of Homeland Security, 
     Secretary of Commerce, Director of the Office of Science and 
     Technology Policy, and designees from Federal agencies 
     determined by the Secretary of Transportation to have an 
     important role. The Senior Policy Committee shall advise the 
     Secretary and provide policy guidance on the integrated plan 
     for the air transportation system to be developed by the Next 
     Generation Air Transportation System Joint Planning and 
     Development Office.


                        10. approach procedures

     House bill
       Authorizes some of this money to be used to establish 
     approach and departure procedures using GPS and ADS-B in 
     order to meet the needs of air ambulance services.
     Senate amendment
       No provision.
     Conference substitute
       In lieu of House provision, change expiration date in 
     paragraphs (C), (D), and (E) of section 106(k)(2) of current 
     law to conform to the number of years of the bill. Include 
     reference to ADS-B in the Statement of Managers.


                      11. air traffic controllers

     House bill
       Paragraph (k)(5) in section 101 authorizes some of this 
     money to be used to hire additional air traffic controllers 
     in order to accommodate the growth in air traffic and address 
     the expected increase in retirement of experienced 
     controllers.
       Subsection (c) of section 101 directs the FAA to develop a 
     human capital workforce strategy to address the need for more 
     air traffic controllers as called for by the General 
     Accounting Office.
     Senate amendment
       Section 103(b). Requires FAA beginning in FY 2004 budget 
     submission and thereafter to include description of 
     controller staffing plan including strategies for addressing 
     anticipated retirements.
     Conference substitute
       Senate section 103(b) but starts with 2005 budget 
     submission. Subsection (c) of House bill.


                     12. alaskan aviation corridors

     House bill
       Authorizes some of this money be used to complete the 
     mapping of Alaska's main aviation corridors.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                  13. aviation safety reporting system

     House bill
       Authorizes $3.4 million to be used for the Aviation Safety 
     Reporting System. Calls for a report on the Aviation Safety 
     Reporting System.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                14. bureau of transportation statistics

     House bill
       Authorizes $3.971 million in 04, $4.045 million in 05, 
     $4.127 million in 06, and $4.219 million in 05 from the Trust 
     Fund for the Bureau of Transportation Statistics' activities 
     collecting and analyzing aviation data.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


           15. air navigation facilities and equipment (f&e)

     House bill
       Authorizes $3.138 billion in 2004, $2.993 billion in 2005, 
     $3.053 billion in 2006, and $3.110 billion in 2007.
     Senate amendment
       Authorizes $2.196 billion in 2004, $2.971 in 2005, and 
     $3.030 billion for 2006. No authorization for 2007. Requires 
     biannual reports on the changes in budget and schedule, and 
     technical risks, of 10 largest F&E programs.
     Conference substitute
       House bill with Senate report. The Managers expect that no 
     research and development activities will be funded from the 
     facilities and equipment account.


                           16. gulf of mexico

     House bill
       Money is authorized from the F&E account to improve the 
     safety and efficiency of air operations in the Gulf of 
     Mexico.

[[Page H7749]]

     Senate amendment
       Similar provision but worded differently. Money is 
     authorized from general fund.
     Conference substitute
       House bill.


                          17. wake turbulence

     House bill
       $20 million per year for 4 years is authorized from F&E for 
     FAA to demonstrate the benefits of a wake vortex advisory 
     system.
     Senate amendment
       $500,000 is authorized for 1 year from RED for FAA to 
     contract with the National Research Council for an assessment 
     of FAA's wake vortex research program. Report required in 1 
     year.
     Conference substitute
       House provision for the life of bill, except the Conferees 
     agreed to delete a specific dollar amount and change the 
     wording to allow development and analysis of multiple 
     systems.


                 18. PRECISION APPROACH LANDING SYSTEMS

     House bill
       $20 million per year is authorized per year from F&E for 
     precision approach landing systems in mountainous areas 
     contingent on FAA certifying or approving these systems. 
     Maintenance of equipment not included.
     Senate amendment
       Similar provision but no requirement for FAA approval and 
     no specific sum is authorized. Money comes from general fund. 
     Maintenance of equipment is included.
     Conference substitute
       House bill without specifying dollar amount.


                  19. STANDBY POWER EFFICIENCY PROGRAM

     House bill
       No provision.
     Senate amendment
       Authorizes funding for a program to improve power stations 
     at FAA sites.
     Conference substitute
       Senate amendment.


              20. anchorage air traffic control facilities

     House bill
       No provision.
     Senate amendment
       Requires a report from FAA on the feasibility of 
     consolidating air traffic control facilities.
     Conference substitute
       Senate amendment.


         21. air traffic control collegiate training initiative

     House bill
       No provision.
     Senate amendment
       Authorizes DOT to expend funds on this initiative.
     Conference substitute
       Senate amendment but funded from the FAA's operating 
     account (49 USC 106(k)).


                              22. research

     House bill
       No provision.
     Senate amendment
       Authorizes funding for FAA research and development.
     Conference substitute
       Authorizes all research and development activities for the 
     agency within the R&D section of Title 49. The Managers 
     expect these research and development activities to be funded 
     from the FAA's R,E&D account.


                23. aviation safety workforce initiative

     House bill
       No provision.
     Senate amendment
       NASA and FAA shall establish a joint program to make grants 
     to students in aviation fields. Such sums are authorized to 
     NASA and FAA to carry out this program. Report required in 
     180 days.
     Conference substitute
       Senate amendment.


                            24. scholarships

     House bill
       No provision.
     Senate amendment
       NASA and FAA shall develop a student loan program for those 
     studying in an aviation field. Money is authorized and a 
     report is required.
     Conference substitute
       Established a scholarship and internship program for those 
     studying in an aviation field.


                         25. airfield pavement

     House bill
       No provision.
     Senate amendment
       Requires FAA to continue the program of awarding grants to 
     foundations to do research on airfield pavement. But this 
     should not get higher priority than other research programs.
       FAA shall review its standards for airfield pavement 
     thickness and revise them if needed to meet the 20-year life 
     requirement for such pavement. Report required in 1 year.
     Conference substitute
       Senate amendment, except Conferees agreed to strike any 
     reference to ``rigid concrete'' and to amend 47102(3)(H) to 
     make non-hubs eligible for AIP grants for pavement 
     maintenance.


                       26. certification methods

     House bill
       No provision.
     Senate amendment
       FAA shall conduct research to develop analytical tools to 
     improve existing certification methods and reduce the cost 
     for certification of new products.
     Conference substitute
       Senate amendment.


                          27. new technologies

     House bill
       No provision.
     Senate amendment
       FAA may conduct a limited pilot program to provide 
     incentives to airlines to use new technologies. $500,000 is 
     authorized from the general fund in 2004 for this program.
     Conference substitute
       Senate amendment except authorized from Facilities and 
     Equipment.


                     28. faa center for excellence

     House bill
       No provision.
     Senate amendment
       FAA shall develop a Center for Excellence focused on 
     research and training on composite materials.
     Conference substitute
       Senate amendment.


                29. report on environmental improvements

     House bill
       No provision.
     Senate amendment
       Requires a study on ways to reduce aircraft noise and 
     emissions. Report required in 1 year. $500,000 is authorized.
     Conference substitute
       Authorizes $20 million a year for research on enabling 
     technologies to reduce noise and emissions pollution.


                 30. airport improvement program (aip)

     House bill
       $3.4 billion in 2004, increasing by $200 million each of 3 
     years thereafter. No AIP money for administrative expenses.
     Senate amendment
       $3.4 billion in 2004, increasing by $100 million in each of 
     2 years thereafter. Authorizes use of AIP for administrative 
     expenses.
     Conference substitute
       Senate amendment to the length of the bill however does not 
     authorize use of AIP for administrative expenses. Conferees 
     believe that AIP money should not be used for research, as 
     that should be done in the research account.


                       31. contract tower program

     House bill
       Authorizes funding for the contract tower program for 4 
     years increasing funding by 500,000 each year. Updates the 
     section on the FAA's contract tower program by deleting the 
     1987 date and increases the maximum Federal share (from $1.1 
     million to $1.5 million) for the construction of a tower 
     under this program.
     Senate amendment
       Same provision with respect to funding but for only 3 
     years. Allows qualified entities to contract for towers. Same 
     provision with respect to the Federal share.
     Conference substitute
       Senate amendment, but for 4 years.


                        32. underserved airports

     House bill
       Subsection (b) of section 104 authorizes funding for 5 
     years at $35 million per year for the program established in 
     AIR 21 to improve service at underserved airports.
       Subsection (b) of section 415 revises this program by 
     eliminating the per-State limit on the number of communities 
     that can participate and by giving priority to those 
     communities that can use the money in the fiscal year that 
     they receive it.
     Senate amendment
       Section 302, subsection (a) authorizes funding for 3 years 
     at $27.5 million per year for this program. $275,000 may be 
     used for administrative costs.
       Subsection (b) allows communities to participate more than 
     once but not for the same project. Section 354(c) amends 
     section 41734(h) by striking ``an airport'' and inserting 
     ``each airport''.
     Conference substitute
       House section 104(b) and Senate section 302(b). House 
     section 415(b) but retain per state limit on a per year 
     basis.
       The Conferees continue to be concerned about air service to 
     small and medium sized airports. Section 203 of AIR 21 (114 
     Stat. 92), codified at section 41743 of title 49, included a 
     pilot program to make grants to small communities to help 
     them bolster their air service. This program is only now 
     beginning to get underway. The Conferees believe this program 
     will lead to the desired air service improvements and the 
     reported bill reauthorizes it for another 5 years at $35 
     million per year. In selecting communities for participation 
     in this program, the Conferees encourage the Secretary of 
     Transportation to give preference to airports that have 
     demonstrated the ability to sustain service and that have 
     strong support from the local community.

[[Page H7750]]

                    33. regional jet loan guarantees

     House bill
       Reauthorizes the program to permit loan guarantees to be 
     offered for the purchase of regional jets to serve small 
     airports.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


                        34. trust fund guarantee

     House bill
       Reauthorizes for 4 years the procedural protections in AIR 
     21 that ensure that all Trust Fund revenue and interest is 
     fully spent and that the AIP and F&E programs are fully 
     funded at their authorized levels.
     Senate amendment
       Same provision, worded differently, for 3 years.
     Conference substitute
       House bill.


                            35. design-build

     House bill
       Continues for another 4 years the provision in existing law 
     permitting contractors to both design and build 7 airport 
     improvement projects.
     Senate amendment
       Makes existing law permanent and removes the 7-airport 
     project limit.
     Conference substitute
       Senate amendment. The Committee understands that other 
     alternative qualifications based methods exist such as job 
     order contracting and construction manager at risk. These 
     alternative qualifications-based methods are acceptable under 
     existing regulations and statute. The term ``job order 
     contracting'' means an agreement that provides for the 
     purchase of indefinite and limited quantities of construction 
     pursuant to specific work orders issued to the contractor. 
     The term ``construction manager at risk'' means an agreement 
     that provides for preconstruction services by a contractor 
     during or after design. Section 181 is intended to cover 
     traditional design-build techniques that are not otherwise 
     permitted.


         36. METROPOLITAN WASHINGTON AIRPORTS AUTHORITY (MWAA)

     House bill
       Reauthorizes MWAA's ability to receive AIP grants until 
     2007. Section 412(g) repeals the provision requiring this 
     periodic reauthorization.
     Senate amendment
       Requires MWAA, with DOT, to study the feasibility of 
     housing gates of the two air shuttles in one terminal.
     Conference substitute
       House bill, however Conferees agreed not to repeal the 
     provision requiring periodic reauthorization and to require 
     MWAA to seek reauthorization in 2008.


                         37. war risk insurance

     House bill
       Makes permanent war risk insurance for international 
     flights and for non-premium insurance. War risk insurance for 
     domestic flights would continue to be subject to periodic 
     reauthorizations. Permits DOT to keep in effect after August 
     31, 2004 the war risk insurance policies that must be in 
     effect until that date. Permits DOT to extend the $100 
     million cap on liability for third party damages to U.S. 
     aircraft manufacturers until the end of next year. Allows DOT 
     to provide war risk insurance coverage to U.S. aircraft 
     manufacturers and to vendors, agents, and subcontractors of 
     airlines but only to the extent that the loss involved 
     aircraft of a U.S. airline. Makes technical corrections.
     Senate amendment
       Reauthorizes the program for 3 years. Allows DOT to provide 
     war risk insurance to a U.S. aircraft manufacturer for loss 
     of an aircraft of a U.S. airline in excess of $50,000,000 or 
     in excess of manufacturer's primary insurance. Includes 
     conforming amendments.
     Conference substitute
       Conferees agreed to amend Section 44310 to extend the 
     effective date of the program to March 30, 2008. DOT is 
     allowed to provide war risk insurance to a U.S. aircraft 
     manufacturer for loss of an aircraft of a U.S. airline in 
     excess of $50,000,000 or in excess of manufacturer's primary 
     insurance.


  38. pilot program for innovative financing for terminal automation 
                          replacement systems

     House bill
       Authorizes FAA to conduct a pilot program to test the cost-
     effectiveness and feasibility of innovative financing 
     techniques to purchase and install terminal automation 
     replacement systems. This proposal is designed to replace 
     existing obsolete air traffic control equipment at FAA 
     TRACONS. This section provides $200,000,000 in FY 2004 from 
     the Facilities and Equipment Account for this pilot program 
     and allows the FAA to make multi-year advance contract 
     provisions to achieve economic-lot purchases and more 
     efficient production rates.
     Senate amendment
       No provision.
     Conference substitute
       House bill, however the pilot program is not limited to any 
     particular technology or system.


             39. cost sharing of atc modernization projects

     House bill
       No provision.
     Senate amendment
       DOT may make 10 grants per year for ATC projects that are 
     certified or approved by FAA and that promote safety, 
     efficiency or mobility. The money shall come from the F&E 
     account. It shall be limited to $5 million per project. The 
     Federal share of the project shall be limited to 33%. The 
     local share shall come from non-Federal sources including 
     PFCs. Facilities and equipment obtained through this program 
     may be transferred to FAA. FAA shall issue guidelines for 
     this program without being subject to the APA.
     Conference substitute
       Senate amendment but limited to the purchase of equipment 
     and software.


                        40. project streamlining

     House bill
       Provides that the Title may be cited as the ``Airport 
     Streamlining Approval Process Act of 2003''. Makes a number 
     of findings regarding our Nation's major airports and the 
     environmental review process for airport capacity projects at 
     congested airports.
     Senate amendment
       No provision.
     Conference substitute
       Subtitle renamed ``Aviation Development Streamlining.'' 
     Provides that the Title may be cited as the ``Aviation 
     Streamlining Approval Process Act of 2003''. Findings are the 
     same as the House bill.


        41. promotion of new runways--airport capacity projects

     House bill
       Provides that the Administrator shall take action to 
     encourage the construction of airport capacity enhancement 
     projects at congested airports. This is designed to encourage 
     the FAA to take a more proactive approach in encouraging the 
     construction of new runways when it determines that it would 
     be in the national interest.
     Senate amendment
       Section 47701, takes a different approach by requiring the 
     Secretary to identify airports, among FAA's Airport Capacity 
     Benchmark Report 2001, with delays significantly affecting 
     the national system. This section also requires the Secretary 
     to set up a task force and conduct a capacity enhancement 
     study (CES) from which identified airports would be directed 
     to engage in runway expansion processes. Based on the CES, an 
     airport would be required to complete the planning and 
     environmental review process within 5 years after CES, is 
     submitted to DOT. If an identified airport declines to 
     undertake expansion projects, they will be ineligible for 
     planning and other expansion funding and cannot issue 
     passenger facility fees. The Secretary must make every 
     attempt to expedite funding for airports that do comply.
       Section 47702, provides for designation of airport 
     development projects as national capacity projects if they 
     will significantly enhance the capacity of the national air 
     transportation system. The designation is effective for 5 
     years.
     Conference substitute
       Adopted the Senate title ``Airport Capacity Enhancement'' 
     and the House bill.


                         42. DOT AS LEAD AGENCY

     House bill
       Section 47171, subsection (a) requires the Secretary to 
     develop and implement a coordinated airport project review 
     process for airport capacity enhancement projects at 
     congested airports.
       Subsection (b) provides for a coordinated review process 
     for all environmental reviews, analyses, opinions, permits, 
     licenses, and approvals to be conducted concurrently and 
     completed within a time period established by the Secretary 
     in cooperation with the agencies involved.
       Subsection (c) requires that for each airport capacity 
     enhancement project at a congested airport, the Secretary 
     shall identify all Federal and state agencies that may have 
     jurisdiction over environmental-related matters, may be 
     required by law to conduct an environment review, or may have 
     jurisdiction to determine whether to issue an environmental-
     related permit, license, or approval for the project.
       Subsection (d) allows a State and its associated agencies, 
     consistent with State law, to choose to participate in the 
     coordinated review process for a project at an airport within 
     that State.
       Subsection (e) allows the coordinated review process for a 
     project to be incorporated into a Memorandum of Understanding 
     between the Secretary and the heads of other Federal and 
     State agencies identified in subsection (c), and the airport 
     involved.
       Subsection (f) sets forth the notification and reporting 
     requirements should the Secretary determine that a Federal 
     agency, state agency, or airport sponsor participating in the 
     coordinated review process has not met a deadline established 
     under subsection (b).
       Subsection (g) provides that for any environmental review 
     process or approval issued or made by a Federal or state 
     agency participating in a coordinated review process 
     requiring an analysis of the purpose and need for a project, 
     the agency is bound by the project's purpose and need as 
     defined by the Secretary.
       Subsection (h) provides that the Secretary shall determine 
     the reasonable alternatives

[[Page H7751]]

     to an airport capacity enhancement project at a congested 
     airport and any other Federal or state agency participating 
     in a coordinated review process shall consider only those 
     alternatives to the project that the Secretary has determined 
     are reasonable.
     Senate amendment
       Section 47703, subsection (a) similarly requires the 
     Secretary to implement an expedited coordinated environmental 
     review process for national capacity projects. Includes a 
     date certain deadline for completing all reviews.
       Subsection (b) requires each Federal agency/dept. to accord 
     national capacity project environmental review the highest 
     possible priority & to conduct the review expeditiously. If 
     not complying then the Secretary shall notify Congress 
     immediately.
       Subsection (c) requires the designation of a Project 
     Coordinator who shall, among other things, coordinate all 
     activities of Federal, State and local agencies involved in 
     the project.
       Subsection (c)(1) requires Secretary to designate a project 
     coordinator & establish an environmental impact team for each 
     national capacity project. Subsection (c)(2) sets forth what 
     the project coordinator and the EIS team shall do.
       Adds 180-days extra time and it is not part of the NEPA 
     process. Subsection (a) requires FAA to publish an additional 
     notice in the FR for each airport capacity enhancement 
     project at a congested airport requesting comments on 
     reasonable alternatives. Subsection (b) provides, outside of 
     NEPA, that an alternative shall be considered reasonable if 
     certain listed criteria are met.
       Subsection (d), provides that the Secretary's 
     determination, not later than 90-days after last day of 
     comment period, is binding on ``all persons, including 
     Federal and State agencies, acting under or applying Federal 
     laws when considering the availability of alternatives to the 
     project.''
       Subsection (e) states that the section does not apply to 
     alternatives analysis under NEPA and does not apply if an 
     airport opts out in writing. Subsections (a) and (c) require 
     comment periods in addition to NEPA. Subsection (a), as 
     indicated above, requires FAA to publish an additional notice 
     requesting comments on reasonable alternatives.
       Subsection (c), requires an additional 60-day comment 
     period.
     Conference substitute
       House bill with Senate Amendment. The Conferees intend that 
     the procedures set forth in this section will allow DOT to 
     cut through red tape and eliminate duplication without 
     diminishing existing environmental laws or limiting local 
     input into these critical projects. Conferees believe that 
     the expedited, coordinated environmental review process will 
     ensure that once a community reaches consensus on a critical 
     project, the review process will not unnecessarily delay 
     action. Conferees designate the Department of Transportation 
     as the lead agency for the project review process, and 
     directs the Secretary of Transportation to develop a 
     coordinated review process for major airport capacity 
     projects that will ensure that all environmental reviews by 
     government agencies will be conducted at the same time, 
     whenever possible.
       The Conferees agreed to combine the streamlined 
     environmental review processes and procedures for airport 
     capacity enhancement projects at congested airports, aviation 
     safety projects, and aviation security projects into one 
     section. Therefore, House bill section 47177 is folded into 
     House bill section 47171. The Conferees also adopted the 
     Senate amendment regarding environmental impact statement 
     teams as a way to streamline the environmental review process 
     and achieve a coordinated, expedited environmental review. 
     Conferees believe that after proper scoping and public 
     comment processes, the determinations of the Secretary with 
     regard to a proposed project's purpose and need and 
     reasonable alternatives shall be binding on any other Federal 
     or state agency that is participating in a coordinated 
     environmental review process under this section. 
     Participation in a coordinated environmental review process 
     includes the review of environmental analyses, consultation 
     and coordination, and the issuance of environmental opinions, 
     licenses, permits, and approvals.
       Conferees recognize that the Department of Transportation 
     and the Federal Aviation Administration have significant 
     expertise and experience on transportation-related matters. 
     Therefore, the Conferees believe that in conducting 
     environmental reviews within the jurisdiction of the DOT, the 
     Secretary should play a lead role in determining which 
     analytical methods are reasonable for use in determining the 
     transportation impacts and benefits of project alternatives, 
     particularly in the area of noise impacts. Other agencies 
     should give substantial deference to the aviation expertise 
     of the Federal Aviation Administration with respect to 
     determinations of relevant aviation factors including 
     aircraft and airport operations, airport capacity, and future 
     national air space capacity forecasts. Other agencies have 
     expertise in determining the environmental impacts of 
     transportation projects, and the Secretary should rely on the 
     expertise of these agencies in analyzing these impacts. The 
     Conferees believe that, to the maximum extent possible, all 
     Federal and State agencies participating in the coordinated 
     review process should use a common set of data for their 
     analyses in carrying out their responsibilities to conduct 
     environmental reviews under Federal law.


                       43. CATEGORICAL EXCLUSIONS

     House bill
       Section 47172, states that not later than 120 days after 
     the date of enactment of this section, the Secretary shall 
     develop and publish a list of categorical exclusions from the 
     requirement that an environmental assessment or an 
     environment impact statement be prepared for projects at 
     airports.
     Senate amendment
       Requires FAA to report to Senate, within 30 days, on 
     current CATEXs and on proposed additional CATEXs. Directs 
     Secretary to consider other things outside of NEPA, when 
     determining list of proposed CATEXs.
     Conference substitute
       In lieu of either the House bill or Senate amendment, the 
     Conferees agree that the requirement to develop and publish a 
     list of categorical exclusions is unnecessary given that the 
     FAA already published a list of new categorical exclusions as 
     part of their proposed FAA Order 1050.1E, ``Environmental 
     Impacts: Policies and Procedures.'' It would therefore be 
     most helpful if the FAA finalized this Order. The Conferees 
     have set a 180-day deadline for the FAA to publish their 
     final FAA Order 1050.1E. In addition, with regard to airport 
     projects, the Conferees have set a deadline for the FAA to 
     publish, for public comment, the revised FAA Order 5050.413, 
     ``Airport Environmental Handbook,'' and urge the FAA to 
     finalize this Order as soon as practicable.


  44. ACCESS RESTRICTIONS TO EASE CONSTRUCTION--AIR TRAFFIC PROCEDURES

     House bill
       Section 47173, provides that at the request of a congested 
     airport, the Secretary may approve a restriction on use of a 
     runway to be constructed at the airport to minimize 
     potentially significant adverse noise impacts from the runway 
     only if the Secretary determines that the imposition of the 
     restriction (1) is necessary to mitigate significant noise 
     impacts and expedite construction of the runway; (2) is the 
     most appropriate and cost-effective measure to mitigate those 
     impacts, taking into consideration any environmental 
     tradeoffs; and (3) would not adversely affect service to 
     small communities, adversely affect safety or efficiency of 
     the national airspace system, unjustly discriminate against 
     any class of user of the airport, or impose an undue burden 
     on interstate or foreign commerce.
     Senate amendment
       Section 47705 is a similar provision for national capacity 
     projects that involve construction of new runway or 
     reconfiguration of runway. If the Secretary determines 
     consistent with safe and efficient use of airspace, and 
     consistent with applicable Federal law, then commit to such 
     procedure in ROD for project.
     Conference substitute
       Conferees adopted the Senate amendment with minor changes 
     to conform to the use of the term ``airport capacity 
     enhancement projects at congested airports'' in lieu of the 
     term ``national capacity projects.''


               45. AIRPORT REVENUE TO PAY FOR MITIGATION

     House bill
       Section 47174, subsection (a) states, that the Secretary 
     may allow an airport carrying out a capacity enhancement 
     project at a congested airport to make payments out of 
     revenues generated at the airport for measures to mitigate 
     the environmental impacts of the project if the Secretary 
     finds that (1) the mitigation measures are included as part 
     of, or are consistent with, the preferred alternative for the 
     project in the documentation prepared for NEPA; (2) the use 
     of such revenues will provide a significant incentive for, or 
     remove an impediment to, approval of the project by a State 
     or local government; and (3) the cost of the mitigation 
     measures is reasonable in relation to the mitigation that 
     will be achieved. Subsection (b) describes what the 
     mitigation measures described in Subsection (a) may include.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


                    46. AIRPORT FUNDING OF FAA STAFF

     House bill
       Section 47175, subsection (a) provides that FAA may accept 
     funds from an airport to hire additional staff or obtain the 
     services of consultants to facilitate the timely processing, 
     review, and completion of environmental documents associated 
     with an airport development project.
       Subsection (b) allows the Administrator, with agreement of 
     the airport, to transfer its entitlement funds to the account 
     used by FAA for activities described in subsection (a).
       Subsection (c) states that, notwithstanding section 3302 of 
     title 31, any funds accepted under this section, except funds 
     transferred pursuant to subsection (b) shall (1) be credited 
     as offsetting collections to the account that finances the 
     activities and services for which the funds are accepted; (2) 
     be available for expenditure only to pay the costs of 
     activities and services for which the funds are accepted; and 
     (3) remain available until expended.
       Subsection (d) provides that no funds may be accepted 
     pursuant to subsection (a), or

[[Page H7752]]

     transferred under subsection (b), ensures that airport or AIP 
     money is utilized only to provide additional funds for 
     environmental staff, not merely replace funds from the FAA's 
     operating account that would have been provided for this 
     purpose in any event.
     Senate amendment
       Section 47706, similar provision but provides for pilot 
     program and sets up rather complicated process getting much 
     more specific in requirements. Also, does not allow airports 
     to use AIP for this purpose.
     Conference substitute
       House bill and Senate Amendment. Conferees agree that this 
     program should be a permanent program and that airports 
     should be allowed to use AIP entitlement funds to fund 
     environmental staff. However, this provision is designed to 
     ensure that airport or AIP money is utilized only to provide 
     additional funds for environmental staff, and not merely to 
     replace funds in the FAA's operating account that would have 
     been provided for this purpose in any event.


                           47. AUTHORIZATION

     House bill
       Section 47176, authorizes funds to be appropriated to the 
     Secretary out of the Airport and Airway Trust Fund, in the 
     amount of $4,200,000 for fiscal year 2004 and for each fiscal 
     year thereafter for the timely processing, review and 
     completion of environmental review activities associated with 
     airport capacity enhancement projects at congested airports
     Senate amendment
       No provision.
     Conference substitute
       House bill.


            48. STREAMLINING OF SAFETY AND SECURITY PROJECTS

     House bill
       Section 47177, allows, in subsection (a), the Administrator 
     of the Federal Aviation Administration to designate an 
     aviation safety or aviation security project for priority 
     environmental review. The Administrator is not allowed to 
     delegate this designation authority.
       Subsection (b) directs the Administrator to establish 
     guidelines for the designation of an aviation safety or 
     aviation security project for priority environmental review. 
     The guidelines must include consideration of, (1) the 
     importance or urgency of the project; (2) the potential for 
     undertaking the environmental review under existing emergency 
     procedures under the National Environmental Policy Act; (3) 
     the need for cooperation and concurrent reviews by other 
     Federal or State agencies; and (4) the prospect for undue 
     delay if the project is not designated for priority review.
       Subsection (c) sets forth the procedures for coordinated 
     environmental reviews. Paragraph (1) directs the 
     Administrator, in consultation with the heads of affected 
     agencies, to establish specific timelines for coordinated 
     environmental reviews of an aviation safety or aviation 
     security projects. The timelines shall be consistent with 
     timelines established in existing laws and regulations. Also, 
     this subsection directs each Federal agency with 
     responsibility for project environmental reviews, analyses, 
     opinions, permits, licenses, and approvals to accord any such 
     review a high priority and to conduct the review 
     expeditiously and, to the maximum extent possible, 
     concurrently with other such reviews. Paragraph (2) directs 
     each Federal agency identified under subsection (c) to 
     formulate and implement administrative, policy, and 
     procedural mechanisms to enable the agency to ensure 
     completion of environmental reviews, in a timely and 
     environmentally responsible manner.
       Subsection (d) provides for State participation. Paragraph 
     (1) states that if a priority environmental review process is 
     being implemented with respect to a project within the 
     boundaries of a State with State environmental requirements 
     and approvals, the Administrator must invite the State to 
     participate in the process. Paragraph (2) allows that a State 
     invited to participate in a priority environmental review 
     process, consistent with State law, may choose to participate 
     and may direct that all State agencies, which have 
     jurisdiction to conduct an environmental review or analysis 
     of the project, be subject to the coordinated review process.
       Subsection (e) sets forth the procedures for when a Federal 
     agency or participating State fail to give priority, review. 
     Paragraph (1) provides that if the Secretary of 
     Transportation deternines that a Federal agency or a 
     participating State is not complying with the requirements of 
     this section and that the noncompliance is undermining the 
     environmental review process, the Secretary must notify, 
     within 30 days the head of the Federal agency or, with 
     respect to a State agency, the Governor of the State. 
     Paragraph (2) states that when a Federal agency receives such 
     a notification, the Agency must submit a written report to 
     the Secretary within 30 days explaining the reasons for the 
     situation described in the notification and what remedial 
     actions the agency intends to take. Paragraph (3) states that 
     if the Secretary determines that a Federal agency has not 
     satisfactorily addressed the problems within a reasonable 
     period of time allowed under this subsection, the Secretary 
     shall notify the Council on Environmental Quality, the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives, and the Committee on Commerce, Science 
     and Transportation of the Senate.
       Subparagraph (f) cross-references the procedures set forth 
     in subsections (c), (e), (g), (h), and (i) of section 47171 
     and directs that they shall apply with respect to an aviation 
     safety or aviation security project under this section in the 
     same manner and to the same extent as such procedures apply 
     to an airport capacity enhancement project at a congested 
     airport under section 47171.
       Subsection (g) provides a list of definitions of terms used 
     in the section. Section 47178, provides a list of definitions 
     of terms used in the subchapter, including terms ``congested 
     airport'' and ``Airport Capacity Enhancement Project.''
     Senate amendment
       Section 47707, provides definition of National Capacity 
     Project.
     Conference substitute
       House bill. Conferees combined House bill section 47177, 
     which includes the procedures for an expedited, coordinated 
     environmental review process for aviation safety and aviation 
     security projects, with House bill section 47171, the 
     procedures for airport capacity enhancement projects at 
     congested airports. The Conferees believe that environmental 
     reviews for these types of projects should be streamlined in 
     the same way that airport capacity enhancement projects at 
     congested airports are streamlined. Therefore, all processes 
     and procedures applicable to airport capacity enhancement 
     projects at congested airports apply to designated aviation 
     safety or aviation security projects. Conferees adopted the 
     House bill definitions of terms in both Sections 47177(g) and 
     47178.


                       49. GOVERNOR'S CERTIFICATE

     House bill
       Repeals the requirement in section 47106(c)(1)(B) that the 
     Governor of the state in which the project is located 
     certifies in writing to the Secretary that there is 
     reasonable assurance that the project will be in compliance 
     with applicable air and water quality standards.
     Senate amendment
       Same as House bill except the Senate strikes ``(1)(c)'' in 
     newly designated 47106(c)(4) and inserts ``(1)(B)'', and does 
     not strike ``Stage 2'' and insert ``Stage 3'' in 
     7106(c)(2)(A).
     Conference substitute
       Senate amendment with minor technical changes to reflect 
     revisions contained in House bill. Conference substitute 
     repeals the governor's certificate requirement regarding 
     compliance with applicable air and water quality standards.


             50. NOISE MITIGATION NEAR A CONGESTED AIRPORT

     House bill
       Authorizes the issuance of a grant to an airport operator 
     of a congested airport and a unit of local government to 
     carry out a project to mitigate noise in the area surrounding 
     the airport if the project is included as a commitment in a 
     record of decision of the FAA for an airport capacity 
     enhancement project.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


  51. STREAMLINING LIMITATIONS AND RELATIONSHIP TO OTHER REQUIREMENTS

     House bill
       Section 207 states that nothing in the Act shall preempt or 
     interfere with any practice of seeking public comment; any 
     power, jurisdiction, or authority that a state agency or an 
     airport sponsor has with respect to carrying out an airport 
     capacity enhancement project; and any obligation under the 
     National Environmental Policy Act and Council on 
     Environmental Quality regulations.
       Section 208 provides that the coordinated review process 
     required under this Title for airport capacity enhancement 
     projects at congested airports shall apply whether or not the 
     project is a high-priority transportation infrastructure 
     project under Executive Order 13274.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                              52. ILLINOIS

     House bill
       No provision.
     Senate amendment
       Makes clear that nothing in Title II of the Senate 
     amendment precludes the application of this Act to Illinois 
     or preempts the Illinois Governor from approving or 
     disapproving an airport project.
     Conference substitute
       Senate amendment.


               53. MANAGEMENT ADVISORY COMMITTEE MEMBERS

     House bill
       This section reduces the FAA's Management Advisory Council 
     (MAC) to 13 members to reflect the removal the Air Traffic 
     Services Subcommittee from the MAC. The DOT Secretary rather 
     than the President would fill any remaining vacancies in the 
     MAC.
     Senate amendment
       Similar provision.
     Conference substitute
       House bill, but name changed to Management Advisory 
     Committee.

[[Page H7753]]

      54. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE

     House bill
       Establishes the Air Traffic Services Board and moves the 
     members of the Air Traffic Services Subcommittee to this new 
     Board. The FAA Administrator would be the Chairman of this 
     Board. Members are appointed by the President and confirmed 
     by the Senate. Compensation of the Board Members is 
     eliminated. Board makes recommendations on the FAA budget 
     rather than approve it.
     Senate amendment
       Similar provision but it is called a Committee rather than 
     a Board and members are appointed by the Secretary. Retains 
     $25,000 compensation for members. Continues to require 
     approval of FAA budget. Requires President to submit FAA 
     budget request to Congress without revision.
     Conference substitute
       House bill and Senate amendment, but without the provision 
     on the budget. The new organization is a committee.


   55. CLARIFICATION OF THE RESPONSIBILITIES OF THE CHIEF OPERATING 
                                OFFICER

     House bill
       Revises the functions of the FAA's Chief Operating Officer 
     (COO) to more closely reflect the duties of such a position. 
     The current statutory functions have been criticized for 
     being more appropriate for a CEO than a COO. The COO is given 
     the added responsibility of developing a comprehensive plan 
     with specific performance goals for managing cost-
     reimbursable contracts as called for in the report of the 
     Inspector General (Report F1-2202-092, May 8, 2002).
     Senate amendment
       Similar, except there is no provision on cost-reimbursable 
     contracts.
     Conference substitute
       House bill.


                  56. SECTION WHISTLEBLOWER PROTECTION

     House bill
       No provision.
     Senate amendment
       Provides whistleblower protection for employees of FAA 
     contractors.
     Conference substitute
       Senate amendment.


                      57. SMALL BUSINESS OMBUDSMAN

     House bill
       This section establishes the position of small business 
     ombudsman within FAA to serve as a liaison with small 
     business and provide assistance to those businesses.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


                         58. FAA PURCHASE CARDS

     House bill
       This section requires FAA to take appropriate actions to 
     implement General Accounting Office recommendations made in a 
     report (GAO-03-405, March 2003) that uncovered abuses of FAA 
     purchase cards. Similar concerns had been raised earlier 
     about practices in Alaska (GAO-02-606, May 2002).
     Senate amendment
       No provision.
     Conference substitute
       House bill.


           59. IMPROVEMENT OF AVIATION INFORMATION COLLECTION

     House bill
       This section would repeal the prohibition on collecting 
     information by specific flight effective on the date of 
     issuance of a final rule that reduces the reporting burden 
     for air carriers through electronic filing of the Origin & 
     Destination Survey data.
     Senate amendment
       No provision.
     Conference substitute
       House provision with additional language to ensure that 
     data cannot be used for anticompetitive purposes. The 
     additional language requires that, if the Secretary requires 
     air carriers to provide flight-specific information, (1) the 
     Secretary shall not disseminate fare information for a 
     specific flight to the general public for a period of at 
     least nine months following the date of the flight; and (2) 
     shall give due consideration to and address confidentiality 
     concerns of carriers, including competitive implications, in 
     any rulemaking prior to adoption of a rule requiring the 
     dissemination to the general public of any flight-specific 
     fare.


 60. DATA ON INCIDENTS AND COMPLAINTS INVOLVING PASSENGER AND BAGGAGE 
                           SECURITY SCREENING

     House bill
       This section requires DOT to publish passenger complaints 
     about screening problems in the same way that it publishes 
     complaints about delays, lost baggage, etc.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                            61. DEFINITIONS

     House bill
       This section places the various definitions of ``hub'' in 
     one place in Title 49 rather than scattered throughout the 
     code as they are now. This section includes the various hub 
     definitions in Chapter 471 of title 49. Also defines ``amount 
     made available'' and ``passenger boardings''.
     Senate amendment
       Adds definitions of ``amount newly made available'' and 
     ``amount subject to apportionment'' in chapter 471. Makes 
     necessary conforming changes. Subsection (b) revises when AIP 
     grants may be made.
     Conference substitute
       House bill and Senate amendment.


              62. CLARIFICATIONS TO PROCUREMENT AUTHORITY

     House bill
       Subsection (a) deletes paragraph (c)(1) and (c)(2)(D) that 
     no longer apply to the FAA as a result of the procurement 
     reform contained in section 40110(d) of title 49.
       Subsection (b) deletes the reference to the deadline for 
     implementing procurement reform and allows bid protests to be 
     resolved by alternate dispute resolution techniques. 
     Subsection (c) adds the procurement of ``services'' to the 
     list of actions to which the FAA's procurement system 
     applies.
     Senate amendment
       Subsection (a) is the same provision but it also deletes 
     paragraphs (2)(C) and (E) that require authorization from GSA 
     and limit sole source contracts.
       Also deletes the reference to the deadline for implementing 
     procurement reform.
       Subsection (b) is the same as subsection (c) of the House 
     bill.
     Conference substitute
       House bill and Senate amendment with additional language at 
     the end of new paragraph (d)(4) stating ``and shall be 
     subject to judicial review under section 46110 of this title, 
     and to the provisions of the Equal Access to Justice Act (5 
     U.S.C. 504).''


 63. LOW-EMISSION AIRPORT VEHICLES AND GROUND SUPPORT EQUIPMENT UNDER 
                            THE PFC PROGRAM

     House bill
       Subsection (a) allows passenger facility charge (PFC) 
     revenue to be used to purchase low-emission vehicles or to 
     convert existing equipment.
       Subsection (b) makes clear that PFC revenue can be used 
     only to pay the difference in cost between the low-emission 
     vehicle and a regular vehicle. PFCs can also be used to pay 
     the cost of converting an existing vehicle to a low emission 
     vehicle.
       Subsection (c) defines the type of equipment that is 
     eligible.
     Senate amendment
       Similar provision, but adds requirement that DOT, in 
     consultation with EPA, shall issue guidance.
     Conference substitute
       Conferees adopted a blended version of the House bill and 
     Senate amendment. The Conferees adopted the House provision 
     with the Senate requirement that the EPA, in consultation 
     with DOT, shall issue guidance.


         64. STREAMLINING OF THE PASSENGER FACILITY FEE PROGRAM

     House bill
       Subsection (a) is designed to streamline the PFC approval 
     process by requiring that notice and comment is provided 
     before the airport submits its PFC application to FAA and all 
     the certifications are included in that application. The 
     subsection also states that an airport is required to consult 
     with only those airlines operating there that provide 
     scheduled air service or major charter operations.
       Subsection (b) provides a 3-year test of expedited 
     procedures for approval of PFC applications at small 
     airports. Such an airport that notifies FAA of its intention 
     to impose a PFC shall be allowed to do so unless FAA objects 
     within 30 days of receiving the notice.
     Senate amendment
       This is the same provision with some different wording. 
     Also eliminates the requirement that large airports seeking a 
     PFC of more than $3 show that the project will make a 
     significant contribution to safety, security, increased 
     competition, or reducing congestion or noise.
     Conference substitute
       House bill.


                     65. PFCs AND MILITARY CHARTERS

     House bill
       Makes clear that passengers on a military charter are not 
     required to pay a PFC since payment for the flight is made by 
     the Department of Defense rather than by the individual 
     passengers.
       Makes technical amendments.
     Senate amendment
       Subsection (g) of section 507 is the same provision.
     Conference substitute
       Both House bill and Senate amendment.


            66. USING PFC REVENUE FOR GROUND ACCESS PROJECTS

     House bill
       Requires FAA to publish in 60 days its current policy for 
     allowing PFCs to be used to pay for ground access projects.
     Senate amendment
       No provision.
     Conference substitute
       House bill but add ``consistent with current law.''

[[Page H7754]]

          67. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES

     House bill
       This section requires airlines to place PFC revenue that 
     they collect in a separate account so that the airport for 
     which the PFC was collected will be assured of receiving its 
     money should the airline go out of business during the 
     interim period between the time that the PFC was collected 
     and the time it is remitted to the airport.
     Senate amendment
       No provision.
     Conference substitute
       House bill, but limited to air carriers filing for 
     bankruptcy after the date of enactment. These air carriers 
     would only have to segregate PFC money, and would not be 
     required to put that money in an escrow account.


                       68. MAJOR RUNWAY PROJECTS

     House bill
       No provision.
     Senate amendment
       Requires quarterly reports on the status of major runway 
     projects undertaken at 40 largest airports.
     Conference substitute
       No provision.


                  69. NOISE DISCLOSURE TO HOME BUYERS

     House bill
       No provision.
     Senate amendment
       Requires FAA to study the feasibility of developing a 
     program to notify homebuyers of information on noise 
     disclosure maps. Requires FAA to make noise exposure maps 
     available on its web site.
     Conference substitute
       Senate amendment. Conferees made one change by requiring 
     the Federal Aviation Administration to make noise exposure 
     and land use information from noise exposure maps available 
     to the public via the Internet on its website in an 
     appropriate format. The approach was adopted instead of 
     requiring the FAA to publish noise exposure maps on the FAA's 
     web site alone. Conferees believe that it is very important 
     that potential homebuyers should be notified of the 
     likelihood that they would be exposed to aircraft noise.


                  70. CLARIFICATION OF FLY AMERICA ACT

     House bill
       Makes clear that the term ``commercial item'' does not 
     include the transportation of people by air. Such 
     transportation must be on U.S. airlines to the extent 
     required by the other provisions of 49 U.S.C. 40118.
       Makes clear that a person that has contracted with the 
     military has the same obligation under 49 U.S.C. 41106 to 
     employ U.S. airlines for airlift services as the military.
     Senate amendment
       No provision.
     Conference substitute
       Conferees adopted the House provision that the term 
     ``commercial item'' does not include the transportation of 
     people by air. Such transportation must be on U.S. airlines 
     to the extent required by the other provisions of 49 U.S.C. 
     40118.


                        71. AIRLINE CITIZENSHIP

     House bill
       No provision.
     Senate amendment
       To qualify as a U.S. airline, it must be under the actual 
     control of citizens of the U.S.
     Conference substitute
       Senate amendment.


                        72. AIR CARGO IN ALASKA

     House bill
       No provision.
     Senate amendment
       Permits cargo to or from a foreign country to be 
     transferred to another airline in Alaska without being 
     considered to have broken its international journey.
     Conference substitute
       Senate amendment. This subsection does not apply to 
     transportation of passengers and does not permit the 
     Secretary to authorize a foreign air carrier either to take 
     on for compensation at a place in the United States cargo 
     having both first origin and ultimate destination in the 
     United States, or to engage in service that contravenes any 
     bilateral or multilateral agreement between the United States 
     and any foreign state. Alaska's geographic location and 
     distance from the contiguous 48 states creates special needs, 
     challenges and opportunities. Alaska has a unique geographic 
     location as a technical and refueling stop for all cargo 
     services between Asia, on the one hand, and Europe and North 
     America on the other. A ``term arrangement'' is a cargo 
     relationship between air carrier(s) and foreign air 
     carrier(s) on an ongoing basis, including, for example, 
     preferential rates or joint marketing up to and including a 
     full cargo alliance.


                   73. OVERFLIGHTS OF NATIONAL PARKS

     House bill
       States that the requirements and restrictions governing 
     commercial air tour operations, as defined in the Air Tour 
     Management Act of 2000, of national parks apply only to those 
     flights that are over the park, or over an area within \1/2\ 
     mile outside the boundary of a national park, and not to 
     those flights that may be near the park, even if they have 
     some impact on the park.
       Overrules an FAA regulation that establishes specific times 
     that are considered daylight hours and instead uses the more 
     common approach of defining daylight as the hours between 1 
     hour after sunrise and 1 hour before sunset.
     Senate amendment
       No provision.
     Conference substitute
       House bill, subsection (a) regarding the application of the 
     Air Tour Management Act of 2000 only. The Conferees also 
     agreed to add a provision regarding the utilization of quiet 
     technology at Grand Canyon National Park and established a 
     mediation process if necessary.
       Conferees are greatly disappointed with the lack of 
     progress that has been made by the National Park Service 
     (NPS) and the Federal Aviation Administration (FAA) with 
     regard to managing air tour noise impacts in national parks. 
     It is our understanding that the two agencies have not been 
     able to reach agreement on how to set noise standards for 
     national parks, how to measure and model noise impacts in 
     national parks, and how to appropriately regulate air tours 
     over national parks.
       Conferees point out that in no less than eight places in 
     the Air Tour Management Act of 2000 (ATMA), Congress used the 
     words ``in cooperation'' to describe how the FAA and NPS 
     should work together to develop air tour management plans 
     (ATMPs) for national parks. Congress' intent is clear. The 
     agencies should work collaboratively, cooperatively and in 
     coordination with one another. Neither is in the position to 
     dictate an approach. Conferees expect the two agencies to 
     come to an agreement on a common approach to develop ATMP's, 
     as well as to determine environmental impacts in national 
     parks, including noise impacts. The approach and procedures 
     should be developed expeditiously and in a coordinated and 
     collaborative fashion.
       Finally, it is our understanding that the National Park 
     Service has not sought funding authorization or appropriation 
     for the ATMP process. Conferees believe that both agencies 
     should be funding this effort.


                      74. DELAY REDUCTION MEETINGS

     House bill
       No provision.
     Senate amendment
       DOT may ask U.S. airlines to meet with FAA to discuss 
     flight reductions at severely congested airports to reduce 
     over scheduling and flight delays during peak hours if FAA 
     and DOT determine it is necessary. Meetings shall be chaired 
     by FAA, open to all scheduled U.S. airlines, and limited to 
     the airports and time period determined by FAA. FAA shall set 
     flight reduction targets for the meeting. Airlines shall make 
     flight reduction offers to FAA rather than to other airlines. 
     Transcripts of the meetings shall be made available. Includes 
     an additional provision dealing with delays caused by stormy 
     weather.
     Conference substitute
       Senate amendment without the ``Stormy Weather'' provisions 
     which are covered by the collaborative decision making pilot 
     program described below.


            75. COLLABORATIVE DECISION MAKING PILOT PROGRAM

     House bill
       Requires a pilot program to be established within 90 days 
     that would authorize airlines to discuss changes in flight 
     schedules in the event of a capacity reduction event.
       States that the pilot program will last for 2 years after 
     it is established.
       Subsection (c) directs FAA to issue guidelines for the 
     program that, at least, define when a capacity reduction 
     event exists that would warrant the use of collaborative 
     decision making among airlines.
       States that when the FAA determines that a capacity 
     reduction event exists at an airport, it may permit airlines 
     to meet and discuss their schedules for up to 24 hours in 
     order to use the available air traffic capacity most 
     effectively. The FAA shall monitor these discussions.
       Directs the FAA to choose three airports to participate in 
     the program within 30 days after establishing the program. 
     The airports chosen should be those with the most delays 
     where collaborative decision-making could help reduce delays 
     there and throughout the nation.
       States which airlines are eligible to participate.
       Permits the FAA to modify or cancel the program or prevent 
     an airline from participating if it finds that the purposes 
     of the program are not being furthered or there is an adverse 
     impact on competition.
       Requires FAA and DOT to evaluate the impact of the pilot 
     program on the use of air traffic capacity, competition, the 
     amount of air service to communities, and the impact of 
     delays at other airports. Subsection (i) allows the program 
     to be extended for an additional two years and expanded to 
     seven more airports if warranted by the evaluation in 
     subsection (h).
     Senate amendment
       Requires a program to be established to authorize airlines 
     to discuss changes in schedules in the event of bad weather.
       Within 30 days of enactment, DOT shall establish procedures 
     governing airline requests for authorization, participation 
     by DOT, and the determination by FAA about the impact of bad 
     weather.

[[Page H7755]]

       When FAA determines that bad weather is likely to adversely 
     and directly affect capacity at an airport for at least 3 
     hours, airlines may discuss flights directly affected by the 
     bad weather for up to 24 hours. DOT shall be represented at 
     the meetings.
       Allows DOT to exempt airlines from the antitrust laws in 
     order to participate in the discussions.
       This provision expires 2 years and 45 days after enactment 
     but may be extended for another 2 years. DOT shall notify 
     Congress of any such extension.
     Conference substitute
       House bill but reduced the number of initial participating 
     airports from 3 to 2. Conferees also included requirements 
     that the Attorney General concur with certain actions and 
     determinations of the Secretary of DOT. Conferees also 
     provided that the Attorney General may monitor the 
     communications between air carriers operating at a 
     participating airport. Also included antitrust immunity. 
     Conferees directed the Administrator of the FAA to define and 
     establish limited criteria for a ``capacity reduction 
     event''. Conferees expect the FAA to work closely with the 
     Department of Justice and the Department of Transportation.


                       76. COMPETITION AND ACCESS

     House bill
       No provision.
     Senate amendment
       Directs DOT to study and report within 6 months on 
     competition, access problems, gate usage, pricing and 
     availability at large airports.
     Conference substitute
       No provision.


                       77. COMPETITION DISCLOSURE

     House bill
       No provision.
     Senate amendment
       Requires large airports to file a report with DOT within 30 
     days of denying an airline a gate or other facilities. Report 
     shall provide reason for the denial and time frame for 
     granting the request.
     Conference substitute
       Instead of requiring a report from an airport each time it 
     is unable to accommodate an airline request for gates, the 
     conference substitute requires an airport to file a report 
     with DOT during each 6 month period that it was unable to 
     accommodate a request for gates. The airport could aggregate 
     several incidents into one report. This provision sunsets in 
     5 years.


         78. AVAILABILITY OF AIRCRAFT ACCIDENT SITE INFORMATION

     House bill
       This section adds two provisions to the family assistance 
     plans that airlines are required to follow in the event of a 
     plane crash. The first requires information to homeowners 
     whose houses are damaged about liability and compensation. 
     Typically, this information should direct homeowners to their 
     insurance companies to obtain information on compensation for 
     damages. The second requires the airline to provide closed 
     circuit television or a similar method for families to view 
     NTSB proceedings concerning the accident. This would apply 
     only if the NTSB proceedings were more than 80 miles from the 
     accident site. In such cases, the proceedings would have to 
     be able to be viewed in the cities where the flight 
     originated and where it was scheduled to land. This applies 
     only to cities in the United States.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


    79. SLOT EXEMPTIONS AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT

     House bill
       Increases the number of slot exemptions to be granted 
     outside the 1,250-mile perimeter from 12 to 24. Increases the 
     number of slot exemptions to be granted inside the perimeter 
     from 12 to 20.
       Accommodates the above additional exemptions by increasing 
     the number that can be granted during each one-hour period 
     from 2 to 3. It also distributes the 20 inside-the-perimeter 
     exemptions as follows--6 for air service from Reagan National 
     to small airports without regard to the new entrant criteria, 
     10 to medium size or smaller airports, and 4 to any airport. 
     Directs DOT to establish procedures for the grant of these 
     slot exemptions.
     Senate amendment
       No provision.
     Conference substitute
       House bill. In order to enhance competition, DOT is 
     encouraged to, among others, consider the competitive 
     importance of service to cities that can serve as gateways to 
     additional western states that currently have only limited 
     service to Reagan National Airport. This language is not 
     intended to favor or prejudice an application from a carrier 
     under this section.


                          80. PERIMETER RULES

     House bill
       Requires DOT to study the impact of locally imposed 
     perimeter rules on competition and air service to communities 
     outside that perimeter.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


                    81. COMMUTER AIRCRAFT DEFINITION

     House bill
       Changes the definition of commuter to allow up to 76 seat 
     regional jets to use commuter slots at Reagan National 
     Airport.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


 82. NOTICE CONCERNING AIRCRAFT ASSEMBLY WHERE AN AIRCRAFT IS ASSEMBLED

     House bill
       This section requires, within 1 year, U.S. airlines to 
     include on the placard in the seat back pocket a notice 
     informing the passenger of where the aircraft was built.
     Senate amendment
       No provision.
     Conference substitute
       House bill, but airlines have 18 months to include on the 
     placard in the seat back pocket a notice informing the 
     passenger of where the aircraft was finally assembled.


      83. SPECIAL RULE TO PROMOTE AIR SERVICE TO SMALL COMMUNITIES

     House bill
       In order to promote air service to small communities, this 
     section directs FAA to permit small turbine powered or multi-
     engine aircraft to carry passengers between a small airport 
     and another airport and to accept payment from those 
     passengers if the aircraft is otherwise operated in 
     accordance with FAA rules in Parts 119 and 135 and DOT rules 
     in Part 298 of 14 CFR.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


               84. ESSENTIAL AIR SERVICE (EAS) MARKETING

     House bill
       Allows the portion of the essential air service (EAS) 
     subsidy paid to an airline to promote its service to be paid 
     to the community instead so that the community can promote 
     that service.
     Senate amendment
       Airports may receive up to $50,000 for a marketing plan to 
     increase usage at an EAS community. A local share, not 
     including federal sources but including bond proceeds or in-
     kind contributions, is required unless passenger usage 
     increases by a specified amount. Authorizes $50,000 to a 
     State with an EAS community to assist the State in developing 
     methods to increase passengers at the community. A 10% local 
     share, including in-kind contributions, is required.
       $12 million per year for 3 years is authorized for this 
     program of which $200,000 may be used for administrative 
     costs.
     Conference substitute
       Senate amendment.


                       85. EAS SUBSIDY ADJUSTMENT

     House bill
       Allows adjustments to a carrier's subsidy rate at any time 
     if average monthly costs have increased by 10% or more 
     without regard to requirements relating to renegotiation or 
     termination notice.
     Senate amendment
       Allows adjustments to a carrier's subsidy rate within 30 
     days of enactment if average annual unit costs have increased 
     by 10% or more without regard to renegotiation requirements.
     Conference substitute
       House bill section 415 (a)(3), but does not go into effect 
     until 30 days after enactment. Senate amendment definition of 
     ``significantly increased costs,'' with revisions to clarify 
     calculation. Conferees agreed to a new provision authorizing 
     the Secretary to reverse the upward adjustment in the subsidy 
     rate if costs subsequently decline. It is the Managers' 
     intent that the authority provided in this section be used to 
     cover an industry-wide cost increase, such as increased fuel 
     or insurance costs, and not one unique to a particular 
     carrier.


                         86. RETURNED EAS FUNDS

     House bill
       No provision.
     Senate amendment
       Any EAS subsidy returned to DOT by an airport shall remain 
     available to DOT and used to increase flights to that 
     airport.
     Conference substitute
       No provision.


                         87. EAS AUTHORIZATION

     House bill
       Authorizes $65 million, in addition to the $50 million 
     already required to be provided, for the EAS program and for 
     the alternative program established by subsection (f) below. 
     It also authorizes the hiring of additional employees in DOT 
     to manage the program.
     Senate amendment
       Authorizes $113 million including the $50 million already 
     required.
     Conference substitute
       House bill, with additional authorization for marketing 
     from Senate bill.


                        88. SUBSIDY TERMINATION

     House bill
       Requires DOT to give a community 90 days notice before it 
     discontinues subsidies to a

[[Page H7756]]

     community as a result of that community's failure to meet 
     mileage or per passenger subsidy targets established in 
     Appropriations Acts.
     Senate amendment
       Notwithstanding the subsidy per passenger limitation in the 
     2000 appropriations act, DOT may not terminate a subsidy to a 
     community before the end of 2004, if 2000 ridership at the 
     community was sufficient and it received notice in 2003 that 
     its ridership is no longer sufficient.
     Conference substitute
       No provision.


             89. RESUMING SERVICE AT FORMER EAS COMMUNITIES

     House bill
       Allows an airline to begin service after the date of 
     enactment to a community that has been eliminated from the 
     EAS program without being subject to the hold-in requirements 
     of that program if it should decide to terminate service to 
     that community.
     Senate amendment
       No provision.
     Conference substitute
       House bill. The purpose of this provision is to remove a 
     requirement that might prove to be a disincentive to a 
     carrier resuming service to a community without any service.


                            90. JOINT FARES

     House bill
       Directs DOT to encourage the submission of joint fare 
     proposals to benefit service to small communities.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                          91. ALTERNATIVE EAS

     House bill
       Establishes an alternative to the EAS program. Under this 
     alternative, rather than receiving service from an airline 
     subsidized by DOT, the community could receive a grant from 
     DOT to establish and pay for its own service. This could 
     include scheduled air service, air taxi service, fractional 
     ownership where passengers pay for the service, surface 
     transportation, or some other approach approved by DOT. 
     Communities choosing to participate in this alternative 
     program could not receive service under the established EAS 
     program in the fiscal year in which they participated in the 
     alternate program.
     Senate amendment
       If money authorized for the marketing program is fully 
     appropriated, DOT shall establish a pilot program for no more 
     than 10 communities under which the airport may forgo EAS 
     subsidies for 10 years in exchange for a grant of double the 
     EAS subsidy for airport development. DOT may require major 
     airlines serving one of these 10 communities to participate 
     in multiple code shares if that would improve air service.
       DOT shall establish a pilot program for no more than 10 
     communities to authorize more flights with smaller aircraft 
     if safety will not be compromised. For 3 of these airports, 
     DOT may establish a pilot program where the subsidy pays for 
     alternate transportation and improvement to airport 
     facilities if the airport agrees to terminate its 
     participation in this program pilot program after 1 year.
       DOT may establish a pilot program where airports share the 
     cost of providing service over and above the required 
     essential air service.
     Conference substitute
       Substitute is House section 415 (g), with alternatives and 
     pilot programs in the Senate bill. The fractional ownership 
     provision cannot be used until the FAA rule on fractional 
     ownership takes effect.


                    92. TRACKING EAS SERVICE CHANGES

     House bill
       No provision.
     Senate amendment
       Requires semi-annual report from airlines providing EAS on 
     on-time performance and other service changes.
     Conference substitute
       Senate amendment with revisions.


                93. MILEAGE REQUIREMENTS FOR EAS PROGRAM

     House bill
       Establishes mileage requirements for participation in the 
     EAS program and directs DOT to calculate the mileage by the 
     most commonly used route. DOT should consult with the 
     Governor in determining the most commonly used route. Any 
     community previously eliminated from the EAS program by the 
     distance criteria may appeal that decision to DOT in light of 
     the changes made by this subsection.
     Senate amendment
       Similar provision but the method for determining mileage 
     applies only to Lancaster, PA while the appeal rights apply 
     to any community.
     Conference substitute
       House bill but limited to only 2 years prior to date of 
     enactment and order to be issued is limited to 2007.


                     94. SMALL COMMUNITY OMBUDSMAN

     House bill
       No provision.
     Senate amendment
       Establishes ombudsman in DOT to develop strategies for 
     improving air service to small communities.
     Conference substitute
       No provision.


         95. NATIONAL COMMISSION ON SMALL COMMUNITY AIR SERVICE

     House bill
       No provision.
     Senate amendment
       Establishes 9-member Commission to study challenges facing 
     small communities and whether existing Federal programs are 
     helping.
     Conference substitute
       Senate amendment.


                       96. REFUNDED SECURITY FEES

     House bill
       No provision.
     Senate amendment
       Requires flag airlines, within 30 days, to remit to their 
     code share partners any security fees that they paid but that 
     were refunded to the flag airline. IG reviews compliance. 
     Airline CEO certifies compliance.
     Conference substitute
       No provision.


                         97. TYPE CERTIFICATES

     House bill
       Requires anyone building a new aircraft based on a type 
     certificate to have the permission of the holder of that type 
     certificate.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


             98. CERTIFICATION OF FOREIGN AVIATION PRODUCTS

     House bill
       Requires the FAA to spend the same amount of time and 
     perform a similarly thorough review when certifying or 
     validating a foreign aviation product as the foreign nation 
     spends in certifying or validating U.S. aviation products.
     Senate amendment
       No provision.
     Conference substitute
       The House bill is revised to direct U.S. negotiators to 
     ensure that American products are treated fairly in the 
     certification process.


                     99. INTERNATIONAL ROLE OF FAA

     House bill
       No provision.
     Senate amendment
       Amends section 40101 (d) by requiring FAA to exercise 
     leadership with foreign counterparts, in ICAO, and other 
     organizations to promote safety, efficiency, and 
     environmental improvements in air travel.
     Conference substitute
       Senate amendment.


               100. REPORT ON OTHER NATION'S ADVANCEMENTS

     House bill
       No provision.
     Senate amendment
       FAA shall review other countries aviation safety, research 
     funding, and technological actions and report with 
     recommendations on how those activities might be used in the 
     U.S.
     Conference substitute
       No provision, however the report requirement in the Senate 
     amendment is included in section 819 of the bill.


                 101. DESIGN ORGANIZATION CERTIFICATES

     House bill
       This section directs FAA to develop, within 4 years, a plan 
     for certification of design organizations and allows the FAA 
     to implement within 7 years a system for certifying design 
     organizations if it so chooses.
     Senate amendment
       Similar provision but plan is to be submitted in 3 years 
     and implemented in 5 years. Nothing in this section prevents 
     FAA from revoking a certificate. Makes conforming change to 
     subsection on type certificates.
     Conference substitute
       House timelines with Senate provision on FAA authority to 
     revoke certificates. Replace (f)(3) of House bill with ``The 
     FAA may rely on certifications of compliance by a Design 
     Organization when making a finding under section (a).''


     102. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS

     House bill
       This section would direct the FAA to deny a certificate to 
     a person whose certificate was previously revoked for 
     involvement in an activity relating to counterfeit or 
     fraudulent aviation parts.
     Senate amendment
       Same provision, but would also deny a certificate to a 
     person who carried out an activity related to counterfeit or 
     fraudulent aviation parts for which he could have been 
     convicted.
     Conference substitute
       House bill.


                        103. RUNWAY SAFETY AREAS

     House bill
       Section 419 states that an airport shall not be required to 
     reduce the length of a runway or declare the length of the 
     runway to be less than the actual pavement length in order to 
     meet FAA requirements for runway safety areas.

[[Page H7757]]

       Section 505 requires airports to undertake, to the maximum 
     extent practical, improvements to the runway safety overrun 
     area to meet FAA standards when they receive grants to 
     construct, reconstruct, repair, or improve that runway. This 
     does not require that airport to build a shorter runway, 
     reduce the length of that runway or similar actions that are 
     prohibited by section 419 of this bill.
     Senate amendment
       No provision.
     Conference substitute
       House bill. The Conferees agreed to limit this provision to 
     airports located in the State of Alaska, as that is 
     apparently where the FAA's actions with regard to runway 
     safety areas has become a problem. The Conferees also agreed 
     to require the DOT to conduct a study and submit a report on 
     this issue for airports located in the remaining states.


              104. AVAILABILITY OF MAINTENANCE INFORMATION

     House bill
       Requires manufacturers of aircraft and aircraft parts to 
     provide maintenance manuals at a reasonable cost to repair 
     stations that are authorized to work on those aircraft or 
     aircraft parts.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


       105. CERTIFICATE ACTIONS IN RESPONSE TO A SECURITY THREAT

     House bill
       Requires FAA to revoke a pilot's certificate if the 
     Department of Homeland Security notifies the FAA that the 
     pilot is a security risk.
       Gives a pilot who is a U.S. citizen the right to a hearing 
     before an administrative law judge (ALJ). Others have the 
     right to the appeal procedures that the Transportation 
     Security Administration (TSA) has already provided for them.
       States that the ALJ is not bound by the FAA's or TSA's 
     findings of fact or law.
       Allows either party to appeal an ALJ decision to a special 
     panel created by the Transportation Security Oversight Board.
       Allows either party to appeal the panel's decision to the 
     U.S. Court of Appeals. Requires TSA to give a person 
     appealing under this section an explanation of the reason for 
     the revocation and all supporting documents to the extent 
     that national security permits.
       Sets forth the procedures for handling classified evidence 
     This section makes clears that appeals under Subtitle VII of 
     title 49 are handled by the Federal Court of Appeals rather 
     than the District Court.
       Contains a conforming amendment.
     Senate amendment
       No provision.
     Conference substitute
       House bill with technical clarifications to address how 
     FAA, TSA, DHS, CIA, and the parties shall handle classified 
     information in the hearing and appeal processes.


                          106. JUDICIAL REVIEW

     House bill
       Amends 46110(a) by striking ``part'' and inserting 
     ``subtitle'' in the first sentence. Judicial review of TSA 
     actions is covered by section 1710 of H.R. 2144.
     Senate amendment
       References 46110(c) instead of 46110(a). Uses 
     Administration's proposed language, including sections for 
     TSA.
     Conference substitute
       Conferees agreed to amend section 46110(a) of Title 49, 
     United States Code to clarify that the judicial review 
     procedures set forth in section 46110 apply to persons 
     disclosing a substantial interest in orders issued by the 
     Secretary of Transportation in whole or in part under part A 
     and under part B of Subtitle VII of Chapter 49 of the U.S. 
     Code. The intent is to clarify that decisions to take actions 
     authorizing airport development projects are reviewable in 
     the circuit courts of appeals under section 46110, 
     notwithstanding the nature of the petitioner's objections to 
     the decision. In addition, the Committee believes that FAA 
     orders pertaining to airport compliance are exclusively 
     reviewable in the circuit courts of appeals, like other 
     orders issued under similar provisions in part B of subtitle 
     VII of title 49. The Committee notes that the amendment to 
     section 46110 would resolve the jurisdictional issue raised 
     in City of Alameda v. FAA, 285 F.3d 1143 (9th Cir. 2002). 
     Conferees agreed to strike ``part'' and insert ``Subparts A 
     and B''; strike the reference to ``safety'' in order to 
     clarify that the provision is not limited to safety orders of 
     the FAA. Similar changes are made with respect to the 
     Transportation Security Administration.


                          107. CIVIL PENALTIES

     House bill
       No provision.
     Senate amendment
       Sets all civil penalties at $25,000. Increases the limit 
     for the administrative imposition of civil penalties to $1 
     million.
     Conference substitute
       Senate amendment on civil penalties with an exemption for 
     individuals and small businesses. They will not be subject to 
     the penalty increase but will be subject to the penalty they 
     were subject to prior to the enactment of this Act. Also, 
     sets the limit for the administrative imposition of civil 
     penalties at $400,000.


                  108. FLIGHT ATTENDANT CERTIFICATION

     House bill
       Prohibits a person from serving as a flight attendant on an 
     aircraft of a U.S. airline unless that person holds a 
     certificate from the FAA. That person must present that 
     certificate, upon request, to an authorized Federal official 
     within a reasonable time. People currently serving as flight 
     attendants can continue to do so pending their certification. 
     After the airline notifies the FAA that a person has met the 
     qualifications for certification, that person may serve as a 
     flight attendant even if that person does not have the 
     certificate in hand. Requires the FAA to issue a certificate 
     to a person after the airline notifies the FAA that the 
     person has completed all FAA approved training. Designates 
     the appropriate airline official to determine whether a 
     person has successfully completed the training. Requires the 
     certificate to be numbered and recorded by the FAA, contain 
     the name, address, and description of the flight attendant, 
     contain the name of the airline that the flight attendant 
     works for, be similar to airmen certificates, contain the 
     airplane group (jet or prop) for which the certificate is 
     issued, and be issued by the FAA within 30 days of 
     notification by the airline or within 1 year of the effective 
     date of this section.
       Subsection (e) states that all flight attendant training 
     programs, other than those involving security, are subject to 
     FAA approval. Training programs approved within one year 
     prior to the date of enactment may be used as the basis for 
     certifying flight attendants. Defines ``flight attendant''. 
     This section takes effect one year after the date of 
     enactment.
     Senate amendment
       Requires FAA to establish standards for flight attendant 
     training. FAA shall require flight attendants to complete 
     training courses approved by FAA and TSA. FAA shall issue a 
     certificate to each person that completes the course. Has a 
     similar requirement for the certificate. Similar definition 
     of ``flight attendant''.
     Conference substitute
       House bill, however Conferees agreed to allow the 
     Administrator 120 days to issue the certificate after 
     receiving notification from the air carrier.


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

     House bill
       Requires the government agency that owns or controls an 
     airport to provide 30 days notice before that airport is 
     closed. There is $10,000 penalty for each day that the 
     airport remains closed without having given the proper 
     notice.
     Senate amendment
       Same provision.
     Conference substitute
       House bill and Senate amendment. This provision applies 
     only to airport closures that are permanent, not to temporary 
     closures for emergency or operational reasons.


                        110. NOISE EXPOSURE MAPS

     House bill
       This section replaces an obsolete date reference and 
     directs airports to update their noise exposure maps if there 
     is a change in the operations at the airport that would lead 
     to a significant increase or decrease in noise.
     Senate amendment
       Similar provision with exception that does not direct 
     airports to update their noise exposure maps if there is a 
     change in the operations at the airport that would lead to a 
     significant increase or decrease in noise.
     Conference substitute
       House bill.


                          111. OVERFLIGHT FEES

     House bill
       This section makes clear that the changes to the method for 
     calculating overflight fees in the Aviation and 
     Transportation Security Act were not nullified by the savings 
     provision in that Act.
     Senate amendment
       The provision has a similar goal but accomplishes it 
     differently.
     Conference substitute
       Conferees agreed to ratify the interim final rule and final 
     rule issued by the FAA on May 30, 2000, and August 13, 2001, 
     respectively. This ratification applies to fees collected 
     after the date of enactment of the Aviation and 
     Transportation Security Act and before the court decision 
     striking down those fees. It also applies to the fees that 
     FAA collects in the future after it undertakes the actions 
     required by this provision. The FAA may not resume collecting 
     fees until after the Administrator reports to Congress in 
     response to the issues raised in the April 8, 2003 court 
     decision; and after the FAA consults with users and other 
     interested parties to ensure the fees established are 
     consistent with the international obligations of the United 
     States. Conferees intend that consultations before the date 
     of enactment shall satisfy this requirement.
       Conferees note that in 1996, Congress directed the FAA 
     Administrator to set and collect fees for the provision of 
     air traffic control and related services for flights that fly 
     over but do not land in the United States. This was done to 
     recover a portion of the costs of these services from those 
     who receive the benefit of the services but who would 
     otherwise pay nothing. Although the

[[Page H7758]]

     FAA Administrator has diligently proceeded to recover such 
     costs through the imposition of overflight fees, a group of 
     foreign airlines has challenged the fees in United States 
     Court of Appeals for the District of Columbia Circuit.
       On April 8, 2003, when the United States Court of Appeals 
     for the District of Columbia Circuit issued an opinion in the 
     case of Air Transport Association of Canada et al v. FAA, No. 
     01-1446, setting aside and remanding to the FAA the Final 
     Rule issued on August 13, 2001 under Section 45301(b)(1)(B) 
     because the Court concluded that, as a result of the generic 
     savings provision set forth in Section 141 of the ATSA, 
     Section 119(d) of ATSA did not apply to this Final Rule since 
     it was the subject of the foreign air carriers' pending 
     challenge at the time the ATSA was enacted. It was never the 
     intention of Congress that the savings provision set forth in 
     Section 141 was to have this effect, and this amendment 
     clarifies that fact by retroactively applying Section 119(d) 
     to both the Interim Final Rule issued on May 30, 2000 as well 
     as the Final Rule issued on August 13, 2001.
       Also, to clarify that the FAA has complied with its 
     statutory mandate regarding overflight fees in the Interim 
     Final Rule and Final Rule and to ensure the fees can be 
     collected in the future, the language and authority approved 
     by the Court of Appeals for the District of Columbia Circuit 
     in Thomas v. Network Solutions, Inc., 176 F. 3d 500 (D.C. Cir 
     1999) is adopted hereto retroactively, as well as 
     prospectively, to legalize and ratify both the Interim Final 
     Rule and the Final Rule, effective as of the dates those 
     rules were originally issued by the FAA.
       Although the Court of Appeals has never found a violation 
     of international law in the overflight fee rulemakings, there 
     have been complaints that international law has not been 
     complied with by the FAA. To ensure compliance, the 
     Administrator is directed to consult and confer on the 
     concerns of foreign governments and users that the fees 
     established by this section conform to the international 
     obligations of the United States and the Administrator is 
     authorized to adjust the fees, if necessary, to conform to 
     the obligations of the United States under international law.


   112. IMPROVEMENT OF CURRICULUM STANDARDS FOR AVIATION MAINTENANCE 
                              TECHNICIANS

     House bill
       This section requires FAA to update the curriculum for 
     training aircraft mechanics to reflect current technology and 
     maintenance practices. Maintains requirement for 1900 hours 
     of training.
     Senate amendment
       No provision.
     Conference substitute
       House bill without specifically mentioning the 1900-hour 
     minimum requirement.


                  113. AIR QUALITY IN AIRCRAFT CABINS

     House bill
       This section directs the FAA to undertake the studies and 
     analysis called for in the National Academy of Sciences study 
     on airline cabin air quality.
     Senate amendment
       Similar provision, but adds two requirements, to study air 
     pressure and altitude and to establish an incident reporting 
     system.
     Conference substitute
       Senate amendment.


             114. RECOMMENDATIONS CONCERNING TRAVEL AGENTS

     House bill
       This section requires DOT to consider the recommendations 
     of the National Commission to Ensure Consumer Information and 
     Choice in the Airline Industry and to report to Congress on 
     any actions that it believes should be taken.
     Senate amendment
       Same provision.
     Conference substitute
       House bill and Senate amendment.


  115. REIMBURSEMENT FOR LOSSES INCURRED BY GENERAL AVIATION ENTITIES

     House bill
       This section authorizes $100 million to reimburse general 
     aviation businesses that have incurred costs or lost money as 
     a result of security restrictions. The businesses eligible 
     for this reimbursement are the fixed based operator and any 
     other general aviation businesses at Reagan National Airport 
     that has been largely closed to general aviation since 
     September 11, 2001, the 3 general aviation airports in the 
     Washington, D.C. area that were closed after September 11th 
     and are now operating under security restrictions, banner 
     towers who have been prohibited from flying over stadiums, 
     flight schools that have been unable to train foreign 
     students, and any other general aviation business that is 
     prohibited from operating due to similar restrictions.
     Senate amendment
       Similar provision but does not explicitly include banner 
     towers or flight schools in each coverage. Definition of 
     general aviation entity is slightly different.
     Conference substitute
       House bill, but narrows reimbursement eligibility to 
     general aviation businesses that are specifically identified 
     as having incurred costs or lost money as a result of the 
     events of September 11, 2001.


    116. IMPASSE PROCEDURES FOR NATIONAL ASSOCIATION OF AIR TRAFFIC 
                              SPECIALISTS

     House bill
       This section requires the wage dispute between the FAA and 
     the National Association of Air Traffic Specialists to be 
     submitted to the Federal Services Impasse Panel if it has not 
     been resolved within 30 days of enactment of this Act.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


                      117. FAA INSPECTOR TRAINING

     House bill
       Directs GAO to undertake a study of the training of FAA's 
     safety inspectors. Sense of the House that FAA safety 
     inspectors should take the most up-to-date training at a 
     location convenient to the inspector and that the training 
     should have a direct relation to the inspector's job 
     requirements. Directs the FAA to arrange for the National 
     Academy of Sciences to study the staffing standards the FAA 
     uses for its inspector workforce.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                118. AIR TRAFFIC OVERSIGHT SYSTEM (ATOS)

     House bill
       No provision.
     Senate amendment
       Requires FAA, within 90 days, to transmit an action plan 
     for overseeing repair stations, ensuring foreign repair 
     stations are subject to the same level of oversight as 
     domestic ones, and addressing problems with ATOS identified 
     by GAO and the IG. Sets forth the requirements for the action 
     plan including extending ATOS beyond the 10 largest airlines.
     Conference substitute
       Senate amendment that within 90 days, the FAA shall 
     transmit to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure a plan containing an 
     implementation schedule to strengthen oversight of domestic 
     and foreign repair stations and ensure that Administration-
     approved foreign repair stations are subject to an equivalent 
     level of safety, oversight, and quality control as those 
     located in the United States. This does not require, nor does 
     it prevent, the FAA to perform the same number of inspections 
     on foreign repair stations as domestic ones.


         119. PROHIBITION ON AIR TRAFFIC CONTROL PRIVATIZATION

     House bill
       Prohibits DOT from privatizing the functions performed by 
     its air traffic controllers who separate and control 
     aircraft. States that this prohibition does not apply to the 
     functions performed at air traffic control towers that are 
     operated by private entities under the FAA's contract tower 
     program. This exemption covers the current air traffic 
     control towers that are part of the FAA contract tower 
     program and to non-towered airports and non-federal towers 
     that would qualify for participation in this program.
     Senate amendment
       Prohibits DOT from privatizing the functions performed by 
     its air traffic controllers who separate and control aircraft 
     and the functions of those who maintain and certify those 
     systems. Section shall not apply to an FAA tower operated 
     under the contract tower program as of the date of enactment.
     Conference substitute
       Prohibits DOT from privatizing air traffic control 
     functions associated with the separation and control of 
     aircraft, but ensures that the current contract tower program 
     can continue and be expanded to new towers and VFR towers. 
     The prohibition sunsets after 4 years.


             120. AIRFARES FOR MEMBERS OF THE ARMED FORCES

     House bill
       This is a sense of Congress urging airlines to provide low 
     fares for Members of the Armed Forces of the United States. 
     Also includes findings.
     Senate amendment
       Similar provision. No findings. Refers only to standby 
     tickets.
     Conference substitute
       House bill.


 121. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED AIR SERVICE

     House bill
       This section extends for 9 more months the requirement that 
     airlines accommodate passengers whose flight is cancelled due 
     to the bankruptcy of the carrier on which that passenger was 
     ticketed.
     Senate amendment
       Same provision. Also requires DOT to consider waiving this 
     requirement where other airlines operate flights over routes 
     operated in isolated areas dependent on air transportation.
     Conference substitute
       House bill and Senate amendment but without the waiver in 
     the Senate amendment.


                      122. INTERNATIONAL AIR SHOW

     House bill
       This section directs DOT, in consultation with the 
     Secretary of Defense, to study the

[[Page H7759]]

     feasibility of the United States hosting an international air 
     show. A report is required by September 30, 2004.
     Senate amendment
       No provision.
     Conference substitute
       House bill to direct DOT to work with DOD on an 
     international air show.


          123. RETIREMENT BENEFITS OF AIR TRAFFIC CONTROLLERS

     House bill
       This section allows an air traffic controller who is 
     promoted to a supervisory or managerial position to retain 
     the same retirement benefits as one who was not so promoted. 
     Amends the definition of an ``air traffic controller'' within 
     the Civil Service Retirement System (CSRS) and Federal 
     Employee Retirement System (FERS) to include second level air 
     traffic controller supervisors. Clarifies that CSRS and FERS 
     mandatory retirement provisions that apply to line air 
     traffic controllers do not apply to second level supervisors. 
     Specifies that this section shall take effect on the 60th day 
     after the date of enactment. Allow current second level 
     supervisors who have been promoted prior to enactment to 
     retroactively pay into the higher CSRS accrual rate.
     Senate amendment
       No provision.
     Conference substitute
       The provision would ensure that former controllers could 
     keep the retirement benefits they accrued as controllers. 
     Also controllers who were promoted to first line supervisors 
     as well as the supervisors of those first line supervisors 
     would continue to accrue the retirement benefit of 
     controllers. Others who are promoted to higher supervisory 
     positions or who move out of the controller ranks would get 
     controller retirement benefits only for the time they spent 
     as controllers.


         124. JUSTIFICATION FOR AIR DEFENSE IDENTIFICATION ZONE

     House bill
       If the FAA imposes flight restrictions in the Washington 
     D.C. area, this section requires FAA to submit a report to 
     Congress within 60 days explaining the need for such 
     restrictions. If such restrictions are in effect on the date 
     of enactment, this report must be filed within 30 days of the 
     date of enactment.
     Senate amendment
       Same provision with some different wording.
     Conference substitute
       House bill.


                 125. INTERNATIONAL AIR TRANSPORTATION

     House bill
       This is a sense of Congress urging DOT to define ``fifth 
     freedom'' and ``seventh freedom'' consistently for both 
     scheduled and charter passenger and cargo traffic.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


 126. REIMBURSEMENT OF AIR CARRIERS FOR CERTAIN SCREENING AND RELATED 
                               ACTIVITIES

     House bill
       This section directs DOT, subject to the availability of 
     funds, to reimburse U.S. airlines and airports for the 
     security activities that they are still being required to 
     perform. It also directs DOT to reimburse airports for the 
     space being used to screen passengers if that space was being 
     used or would have been used by concessionaires or other for 
     revenue producing activities.
     Senate amendment
       No provision.
     Conference substitute
       House bill, but limited to reimbursement for the screening 
     of catering supplies and checking documents at security 
     checkpoints. The Department of Homeland Security, rather than 
     DOT, would be responsible for implementing this provision to 
     the extent funds are made available to them.


  127. GENERAL AVIATION FLIGHTS AT RONALD REAGAN WASHINGTON NATIONAL 
                                AIRPORT

     House bill
       This is a sense of Congress that Reagan National Airport 
     should be opened to general aviation flights as soon as 
     possible.
     Senate amendment
       No provision.
     Conference substitute
       Requires the Secretary of Homeland Security to develop and 
     implement a security plan to permit general aviation aircraft 
     to land and take off at Ronald Reagan Washington National 
     Airport. The Administrator of the Federal Aviation 
     Administration is required to allow general aviation aircraft 
     that comply with the requirements of the security plan to 
     land and take off at the Airport except during any period 
     that the President suspends the plan developed by DHS due to 
     national security concerns. Also requires a Report to 
     Congress if a plan is suspended.


                         128. CHARTER AIRLINES

     House bill
       This section prohibits scheduled charter airlines from 
     operating at Teterboro unless the Secretary finds that it is 
     in the public interest.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


            129. IMPLEMENTATION OF CHAPTER 4 NOISE STANDARDS

     House bill
       This section requires DOT to issue rule to implement 
     Chapter 4 noise standards by July 1, 2004.
     Senate amendment
       No provision.
     Conference substitute
       House bill but the deadline for the final rule is April 1, 
     2005.


                           130. JACKSON HOLE

     House bill
       No provision.
     Senate amendment
       Permits Jackson Hole to prohibit operations by small stage 
     2 aircraft.
     Conference substitute
       Senate amendment, but permits a sponsor of a commercial 
     service airport who does not own the airport land and is a 
     party to a long-term lease agreement with a Federal agency 
     (other than the Department of Defense or the Department of 
     Transportation) to impose restrictions on, or prohibit, the 
     operation of small Stage 2 aircraft, in order to help meet 
     the noise control plan contained within the lease agreement. 
     The airport sponsor must give public notice and allow for 
     public comment before imposing a restriction or prohibition.


                      131. CREW SECURITY TRAINING

     House bill
       Requires airlines to provide basic security training for 
     flight attendants and sets forth the elements of that 
     training. TSA shall establish minimum standards for that 
     training within one year. Requires TSA to develop and provide 
     advanced self-defense training for flight attendants and sets 
     forth the elements of that training. This training is 
     voluntary and flight attendants are not compensated for 
     taking that training. They cannot be charged a fee. Exempts 
     flight attendants from liability for using self-defense 
     techniques in an actual terrorist situation.
     Senate amendment
       No provision.
     Conference substitute
       House bill. The provision requires the TSA to set the 
     minimum standards to be included in the basic security 
     training provided by each carrier to train flight and cabin 
     crewmembers to prepare the crew members for potential threat 
     conditions. This is intended to make sure that each carrier's 
     training program includes the minimum standards that have 
     been outlined by Congress and the TSA. The programs will be 
     subject to approval of the TSA, who will also monitor and 
     periodically review those programs to assure that the 
     programs are adequately preparing crew members for potential 
     threat situations.


                 132. STUDY OF TRANSPORTATION SECURITY

     House bill
       No provision.
     Senate amendment
       Requires DHS to report in 6 months on the effectiveness of 
     aviation security.
     Conference substitute
       Senate amendment, but this report may be submitted in lieu 
     of TSA's annual report required by section 44938 of current 
     law.


      133. LETTERS OF INTENT TO PAY FOR AIRPORT SECURITY PROJECTS

     House bill
       No provision, but section 1525 of H.R. 2144 establishes a 
     grant program to airport sponsors for (1) projects to replace 
     conveyers related to security, (2) projects to reconfigure 
     baggage areas, (3) projects that enable EDS installation 
     behind the ticket counters, in baggage sorting areas or as 
     part of an in-line systems, and (4) other security 
     improvement projects determined appropriate. Authorizes Under 
     Secretary to issue letters of intent. Established the Federal 
     share of projects to be 90% for large and medium hubs and 95% 
     for smaller airports. Authorized $500M to be appropriated in 
     each of FY04, FY05, FY06 and FY07 to be available until 
     expended. Prohibits the collection of the security fees 
     unless appropriations cover all outstanding LOI commitments 
     in a given Fiscal year.
     Senate amendment
       Establishes Aviation Security Capital Fund to provide 
     financial assistance to airport sponsors to defray capital 
     investment in transportation security. Authorizes $500M for 
     each of FY04, FY05, FY06, and FY07 to be derived from the 
     passenger and air carrier security fees. Allocates funds 40% 
     large hub, 20% medium hub, 15% small hub, and 25% 
     discretionary. Amounts allocated to airports are apportioned 
     based on passenger enplanements. Authorizes letters of 
     intent. No provision on Federal share.
     Conference substitute
       Establishes within the Department of Homeland Security a 
     grant program to airport sponsors for (1) projects to replace 
     baggage conveyer systems related to aviation security; (2) 
     projects to reconfigure terminal baggage areas as needed to 
     install explosive detection systems; (3) projects to enable 
     the Under Secretary for Border and Transportation Security to 
     deploy explosive detection systems behind the ticket counter, 
     in the baggage sorting area, or inline with the baggage 
     handling system; and (4) other airport

[[Page H7760]]

     security capital improvement projects. Authorizes Under 
     Secretary to issue letters of intent. Establishes the Federal 
     share of projects to be 90% for large and medium hubs and 95% 
     for smaller projects. This applies to all grants made under 
     letters of intent beginning in fiscal year 2004 even if the 
     letter was issued in fiscal year 2003. The Under Secretary 
     shall revise letters of intent issued before the date of 
     enactment to reflect this cost share with respect to projects 
     carried out after September 30, 2003. Requires $250 million 
     annually from the existing aviation security fee that is paid 
     by airline passengers to be deposited in an Aviation Security 
     Capital Fund, and made available to finance this grant 
     program. Of this $250 million, $125 million shall be 
     allocated based on the following set-asides: 40% to large hub 
     airports, 20% to medium hub airports, 15% to small and non-
     hub airports, and 25% to any size airport based on aviation 
     security risks. The remaining $125 million shall be used to 
     make discretionary grants, with priority given to fulfilling 
     letters of intent. In addition to the amounts made available 
     to the Aviation Security Capital Fund, there is authorized to 
     be appropriated an additional $250 million to carry out this 
     program. If additional amounts are appropriated pursuant to 
     this authorization, 50% shall be used for discretionary 
     grants, and 50% in accordance with the set-asides discussed 
     above.


                         134. CHARTER SECURITY

     House bill
       No provision, but section 1503(1) of H.R. 2144 moves the 
     provisions governing charters into title 49 and exempts 
     military charters from the requirements that would otherwise 
     apply. Also makes a technical change in the size of charter 
     aircraft covered.
     Senate amendment
       Maintains as a freestanding provision but otherwise 
     virtually the same. Section 406 makes the same technical 
     change.
     Conference substitute
       Senate amendment, but includes the provision in U.S. Code, 
     title 49.


     135. COMPUTER ASSISTED PASSENGER PRESCREENING SYSTEM (CAPPS2)

     House bill
       No provision, but section 208 of H.R. 2144 requires TSA to 
     certify that civil liberty and privacy issues have been 
     addressed before implementing CAPPS 2 and requires GAO to 
     assess TSA compliance one year after TSA makes the required 
     certification.
     Senate amendment
       Requires DHS report in 90 days on privacy and civil 
     liberties issues.
     Conference substitute
       House bill and Senate amendment, but requires the GAO 
     report in the House bill to be submitted 3 months after TSA 
     certification


                        136. ARMING CARGO PILOTS

     House bill
       No provision but section 1521 of H.R. 2144 allows cargo 
     pilots to carry guns under the same program for pilots of 
     passenger airlines. In addition, this provision revises the 
     armed pilots program to do the following--
       Make clear that pilot requalification to carry a gun can be 
     done at either Federal or non-Federal facility
       Establish a pilot program to provide firearms 
     requalification training at various non-Federal facilities;
       Permit an off-duty pilot to transport the gun in a lockbox 
     in the passenger cabin rather than in the baggage hold; and
       Permit flight engineers to participate in the Federal 
     flight deck officer program.
     Senate amendment
       Similar provision but includes findings and sense of 
     Congress and requires training of cargo pilots to begin in 90 
     days.
     Conference substitute
       Senate amendment, but instead of 90-day provision on 
     training cargo pilots, Conferees included a provision that 
     both passenger and cargo pilots should be treated equitably 
     in their access to training.


                        137. TSA STAFFING LEVELS

     House bill
       No provision but section 206 of H.R. 2144 requires TSA to 
     report to Congress in 30 days on its methodology for 
     allocating screeners and equipment among airports.
     Senate amendment
       Section 409, eliminates the cap in the FY 03 Appropriations 
     Act on the number of TSA screeners.
     Conference substitute
       Senate amendment.


                  138. FOREIGN REPAIR STATION SECURITY

     House bill
       No provision but section 1526 of H.R. 2144 requires 
     security audits of all foreign repair stations within 1 year 
     after TSA issues rules governing the audits. The rules must 
     be issued within 180 days of enactment. If a problem is 
     found, the repair station must address it in 90 days or its 
     certificate will be suspended until it complies. If there is 
     an immediate security risk, the certificate can be revoked 
     immediately. TSA shall establish procedures for appealing 
     such revocations. If the security audits are not completed 
     within the required 1-year, no new foreign repair station can 
     be certified and no existing one can have their certificate 
     renewed. Priority shall be given to auditing stations in 
     countries that pose the most significant security risk.
     Senate amendment
       Defines domestic and foreign repair station. Within 180 
     days, FAA must issue rules to require foreign repair stations 
     to meet the same level of safety as domestic repair stations. 
     These rules shall require drug and alcohol testing and the 
     same type and level of inspection as domestic repair 
     stations.
       Requires security audit within 180 days. If a problem is 
     found, the repair station must address it in 90 days or its 
     certificate will be suspended until it complies. If there is 
     an immediate security risk, the certificate can be revoked 
     immediately. If the security audits are not completed within 
     the required 180 days, no new foreign repair station can be 
     certified and no existing one can have their certificate 
     renewed. Priority shall be given to auditing stations in 
     countries that pose the most significant security risk. Rules 
     for security audits must be issued within 180 days. If they 
     are not, no new foreign repair station can be certified and 
     no existing one can have their certificate renewed until the 
     rules are issued.
       Requires FAA, within 90 days, to transmit an action plan 
     for overseeing repair stations, ensuring foreign repair 
     stations are subject to the same level of oversight as 
     domestic ones
     Conference substitute
       House bill except--Lengthened time to issue rule from 6 to 
     8 months. If TSA fails to meet this deadline, require a 
     report within 30 days of the deadline explaining the reasons 
     for failing to meet the deadline and the schedule for issuing 
     the rule. Lengthened time for security audits from 12 to 18 
     months. Eliminated the provision that prohibits renewal of 
     foreign repair station certificates if TSA has not met this 
     18-month deadline but keep provision that no new stations can 
     be certificated.


                          139. FLIGHT TRAINING

     House bill
       No provision, but section 1539 of H.R. 2144 requires 
     background checks on aliens seeking flight training in 
     aircraft with more than 12,500 pounds. Makes TSA responsible 
     for the background check. Specifies the information that can 
     be collected from the alien. Continues the 45-day waiting 
     period. Continues to require security awareness training for 
     employees. Requires, within 90 days, TSA to establish an 
     expedited process that limits the waiting period to 48 hours 
     for individuals who hold a pilot license from a foreign 
     country, have previously undergone a background check, or who 
     have already had pilot training. Exempts from the waiting 
     period those seeking recurrent training or ground training. 
     Doesn't provide for fees.
     Senate amendment
       Requires background checks on aliens seeking flight 
     training in any sized aircraft. Makes TSA responsible for the 
     background check. Doesn't specify the info that can be 
     collected. Reduces the waiting period to 30 days. Continues 
     to require security awareness training for employees. 
     Establishes a notification process for aliens who holds a 
     visa and holds a pilot license from a foreign country or has 
     previously undergone a background check. Exempts from the 
     waiting period classroom instruction Allows fees to be 
     assessed for the background check. Fee cannot be more than 
     $100 in FY 2003 and 2004. Fees are credited to TSA's account. 
     Requires interagency cooperation. Requires TSA to issue an 
     interim final rule in 60 days to implement this section. This 
     section takes effect when that rule becomes effective. U.S. 
     embassies and consulates shall provide fingerprint services 
     to aliens. Report is required within 1 year
     Conference substitute
       For all training on small aircraft, includes a notification 
     requirement but no waiting period. For training on larger 
     aircraft, adopts the expedited procedure similar to the House 
     bill if they already have training, a license, or a 
     background check and adopts the 30-day waiting period as in 
     the Senate bill for first-time training on large aircraft. 
     Makes TSA responsible for the background check. The managers 
     are disappointed in the amount of time that the Justice 
     Department took to implement this program and on the 
     burdensome requirements it has imposed. Therefore, the 
     substitute specifies the information that can be collected 
     from the alien. Reduces the waiting period to 30 days. 
     Establishes a notification process for all aliens, even if 
     they hold a visa, who seeks training on aircraft of 12,500 
     pounds or less. Requires, within 60 days, that TSA establish 
     an expedited process that limits the waiting period to 5 days 
     for aliens seeking training on aircraft of more than 12,500 
     pounds who hold a pilot license from a foreign country, have 
     previously undergone a background check, or who have already 
     had pilot training.
       Requires all others to go through the background check 
     under the 30-day waiting period. Exempts from the process 
     those seeking recurrent training or ground training or 
     demonstration flights or classroom instruction as well as 
     military trainees of the armed forces, including their 
     contractors. Allows fees to be assessed for the background 
     check. Fee cannot be more than $100 in FY 2003 and 2004. Fees 
     are credited to TSA's account. Requires interagency 
     cooperation. Requires TSA to issue an interim final rule in 
     60 days to implement this section. This section takes effect 
     when that rule becomes effective. U.S. embassies and 
     consulates shall

[[Page H7761]]

     provide fingerprint services to aliens. A report is required 
     within 1 year. Continues to require security awareness 
     training for employees.


      140. REVIEW OF COMPENSATION CRITERIA UNDER STABILIZATION ACT

     House bill
       This section requires GAO to review the way airlines were 
     compensated after 9/11 to determine whether they should be 
     compensated for the devaluation of their aircraft.
     Senate amendment
       No provision.
     Conference substitute
       House bill, however study is on DOT criteria and procedures 
     used to compensate airlines.


      141. AIRLINE FINANCIAL CONDITION AND EXECUTIVE COMPENSATION

     House bill
       No provision.
     Senate amendment
       Requires semiannual GAO report on measures being taken by 
     airlines to reduce costs and improve earnings and on total 
     compensation, including stock options paid to airline 
     executives.
     Conference substitute
       Requires a report.


          142. REVIEW OF CERTAIN AIRCRAFT OPERATIONS IN ALASKA

     House bill
       This section requires FAA to report to Congress on whether 
     flights in Alaska can be operated under Part 91 of FAA rules 
     even if passengers pay for some of the costs of operating the 
     aircraft.
     Senate amendment
       No provision.
     Conference substitute
       Conferees agreed that due to the demands of conducting 
     business within and from the State of Alaska, the FAA shall 
     permit, where common carriage is not involved, a company, 
     located in the State of Alaska, to organize a subsidiary 
     where the only enterprise of the subsidiary is to provide 
     carriage of officials, employees, guests, and property of the 
     company, or its affiliate. The substitute sets forth specific 
     limitations on the carriage that is allowed.


       143. USING AIP FOR REPLACEMENT OF BAGGAGE CONVEYER SYSTEMS

     House bill
       This section states that an airport can only use its AIP 
     entitlement funds for airport terminal modifications to 
     accommodate explosive detection systems. AIP discretionary 
     funds will not be available for this purpose.
     Senate amendment
       Prohibits the use of AIP for this purpose.
     Conference substitute
       House bill.


                   144. USING AIP OR PFC FOR SECURITY

     House bill
       No provision, but section 44901(d)(2)(D)(ii) of H.R. 2144 
     deletes the requirement that airports unable to make the 
     checked baggage screening deadline give priority to using AIP 
     and PFCs for security projects.
     Senate amendment
       Amends section 308 of the Federal Aviation Reauthorization 
     Act of 1996 to allow AIP and PFCs to be used for safety and 
     security only if the improvement or equipment will be owned 
     by the airport.
     Conference substitute
       Repeals section 308 of the Federal Aviation Reauthorization 
     Act of 1996.


            145. SECURITY OPERATING COSTS AT SMALL AIRPORTS

     House bill
       This section allows small airports to use their AIP 
     entitlement funds in fiscal dear 2004 to pay the operating 
     costs required to meet new security requirements.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


                146. WITHHOLDING OF DISCRETIONARY GRANTS

     House bill
       If an AIP discretionary grant is withheld from an airport 
     on the grounds that the airport has violated a grant 
     assurance, this section requires that the airport be given 
     the same right to a hearing that it would have if the FAA had 
     withheld an entitlement grant. This section does not require 
     the FAA to give a discretionary grant to any particular 
     airport.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


   147. DISPOSITION OF LAND ACQUIRED FOR NOISE COMPATIBILITY PURPOSES

     House bill
       Rather than depositing into the aviation trust fund the 
     proceeds from the sale of land acquired as part of a noise 
     compatibility program, this section allows an airport to 
     retain those proceeds and use them to purchase non-
     residential property near residential property that was 
     purchased as part of a noise compatibility program.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                         148. GRANT ASSURANCES

     House bill
       If an airport owner and an aircraft owner agree that an 
     aircraft hangar can be constructed at the airport at the 
     aircraft owner's expense, subsection (a) requires the airport 
     owner to grant a long-term lease, or at least 50 years, to 
     the aircraft owner for that hangar. The lease may be subject 
     to such terms and conditions on the hangar as the airport may 
     impose.
     Senate amendment
       No provision.
     Conference substitute
       House bill but does not specify 50 years.


          149. STATUTE OF LIMITATION ON REIMBURSEMENT REQUEST

     House bill
       Makes a governmental entity subject to the 6-year statute 
     of limitations on making requests for reimbursement from an 
     airport. Currently, only the airport sponsor is subject to 
     this statute of limitations.
     Senate amendment
       Subsection (d) of section 507 is the same provision.
     Conference substitute
       House bill and Senate amendment.


                         150. SINGLE AUDIT ACT

     House bill
       Clarifies the review of revenue use through the annual 
     audit activities under the Single Audit Act of Title 31.
     Senate amendment
       Subsection (e) of section 507 is the same provision.
     Conference substitute
       House bill and Senate amendment.


                       151. AIP FOR PARKING LOTS

     House bill
       Permits AIP grants to be used to build or modify a revenue 
     generating parking facility at an airport if it is needed to 
     comply with a security directive.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


                   152. allowing aip to pay interest

     House bill
       Permits AIP grants to be used at small airports to pay the 
     interest on a bond used to finance an airport project.
     Senate amendment
       No provision.
     Conference substitute
       House bill but included as one of the innovative financing 
     techniques already in existing law.


               153. allowing aip to pay to move buildings

     House bill
       Permits AIP grants to be used to pay the cost of moving a 
     Federal building that is impeding an airport project to the 
     extent the new building is similar to the old one
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                154. apportionments to primary airports

     House bill
       Lowers the entitlement for the largest airports by 5 cents 
     for each passenger at that airport over 3.5 million in a 
     year.
     Senate amendment
       No provision.
     Conference substitute
       No provision.


              155. entitlement for former primary airports

     House bill
       Allows airports that fell below the 10,000 passengers in 
     2002 or 2003 to continue to receive their primary airport 
     entitlement for two years if the reason for the passenger 
     decrease was the terrorist attacks of 9/11.
     Senate amendment
       Allows airports that fell below 10,000 passengers in 2002 
     to continue to receive their primary airport entitlement for 
     one more year without regard to the reason for the decrease.
     Conference substitute
       House bill.


                          156. cargo airports

     House bill
       This section increases the entitlement for airports with 
     air cargo service from 3% of total AIP to 3.5%.
     Senate amendment
       Same provision.
     Conference substitute
       House bill and Senate amendment.


           157. considerations in making discretionary grants

     House bill
       This section restates the first five factors that FAA must 
     consider in deciding whether to make a discretionary grant 
     for a project to enhance capacity at an airport. The sixth 
     consideration in current law is eliminated. This section also 
     adds two additional factors for FAA to consider when making 
     discretionary grants for all projects. One is where the 
     project stands in the FAA's priority system. The second is 
     whether work can begin on the project soon after the grant is 
     made.

[[Page H7762]]

     Senate amendment
       Adds an additional consideration for cargo operations.
     Conference substitute
       House bill and Senate amendment.


               158. flexible funding for aip entitlements

     House bill
       Permits an airport sponsor to make AIP entitlement grants 
     for one of its airports available to another one of its 
     airports if that other airport is eligible to receive AIP 
     grants. It also permits an airport to make an agreement with 
     FAA to forego its entitlement if the FAA agrees to make the 
     money foregone available for a grant to another airport in 
     the same State or to an airport that the FAA determines is in 
     the same geographical area.
     Senate amendment
       Same with respect to the second waiver dealing with the 
     same State or geographical area.
     Conference substitute
       Senate amendment.


           159. flexibility for general aviation entitlements

     House bill
       Permits multiyear grants using the general aviation 
     entitlement to the same extent that they are permitted using 
     the primary airport entitlement. Permits retroactive use of 
     the general aviation entitlement in the same way that the 
     primary airport entitlement can be used. It also permits a 
     general aviation airport to use its AIP entitlement for 
     revenue producing facilities, such as building fuel farms and 
     hangars, if the airport certifies that its airside needs are 
     being met. Permits a general aviation airport to use its AIP 
     entitlement for terminal development. Section 513. Use of 
     apportioned amounts, subsection (a) allows general aviation 
     airports to carry over their entitlements for 3 years rather 
     than two.
     Senate amendment
       Same provision.
     Conference substitute
       House bill and Senate amendment.


                          160. noise set-aside

     House bill
       Broadens the purposes for which noise set-aside funds may 
     be used to include projects approved in an environmental 
     Record of Decision and projects to reduce air emissions.
     Senate amendment
       Increases the percent for grants to 35%. Only allows for 
     funding for noise mitigation committed to in ROD for National 
     Capacity Projects, versus House that allows funding for 
     mitigation in any ROD. Also, does not have funding for new 
     land compatibility and CAA initiatives.
     Conference substitute
       House bill and Senate amendment with minor technical 
     corrections.


              161. purchase of airport development rights

     House bill
       No provision.
     Senate amendment
       Establishes a pilot program at 10 privately owned public 
     use airports permitting the use of their entitlement to 
     purchase development rights to ensure that the property 
     will continue to be used as an airport.
     Conference substitute
       Senate amendment.


                           162. gary, indiana

     House bill
       No provision.
     Senate amendment
       Requires FAA to give priority to request for a letter of 
     intent for Gary.
     Conference substitute
       No provision. The Conferees are aware that there are 
     numerous requests for LOI's and urges the FAA to respond as 
     expeditiously as possible to such applications.


                    163. reliever airports set-aside

     House bill
       Eliminates the special set-aside for reliever airports.
     Senate amendment
       No provision.
     Conference substitute
       Senate amendment.


                         164. unused aip funds

     House bill
       Allows AIP grant funds that are not spent by an airport to 
     be recovered by the FAA and used for a grant to another 
     airport notwithstanding any obligation limitation in an 
     appropriations act.
     Senate amendment
       Subsection (b) of section 507 is the same provision worded 
     somewhat differently.
     Conference substitute
       Senate amendment.


                     165. military airport program

     House bill
       Increases from $7 million to $10 million the amount that an 
     airport designated under the military airport program can use 
     for terminal development, parking lots, fuel farms, or hangar 
     construction. Allows an airport designated under the military 
     airport program to use money it receives under that program 
     or from its entitlement for reimbursement for construction of 
     a terminal, parking lot, hangar, or fuel farm.
     Senate amendment
       No provision.
     Conference substitute
       House bill, but the allowable amount is increased to $10 
     million for only 2 years.


                    166. terminal development costs

     House bill
       This section restates two provisions in current law that 
     permits reimbursement for terminal development costs and adds 
     a third provision. The third provision allows a small airport 
     that is designated under the military airport program at 
     which terminal development is carried out between January 
     2003 and August 2004 to use AIP money to repay money borrowed 
     to build that terminal.
     Senate amendment
       Reduces the waiting period for an airport that has used AIP 
     to repay the cost of terminal development from 3 years to l 
     year before they can use AIP again for terminal development.
     Conference substitute
       House bill and Senate amendment.


                  167. airport safety data collection

     House bill
       This section allows FAA to use AIP money to enter into a 
     sole source contract with a private entity to collect airport 
     safety data.
     Senate amendment
       Same provision.
     Conference substitute
       House bill.


                168. airport privatization pilot program

     House bill
       Allows a proposed airport privatization to proceed if it is 
     approved by 65% of the scheduled U.S. airlines serving the 
     airport rather than by 65% of all scheduled and charter 
     airlines serving the airport. With respect to a general 
     aviation airport, approval must be by 65% of the owners of 
     aircraft based at the airport, as determined by the 
     Secretary. If an airline has not filed an objection within 60 
     days, it will be considered to have approved the proposed 
     privatization.
     Senate amendment
       No provision.
     Conference substitute
       House bill, but applied only prospectively.


                           169. federal share

     House bill
       Eliminates the provision that limits the Federal share of a 
     discretionary grant for a privatized airport to 40%.
     Senate amendment
       Increases Federal share to 95% for AIP grants in 2004 to 
     small airports. Allows a different Federal share for projects 
     in State with a significant amount of public land.
     Conference substitute
       Senate amendment, but for 4 years. Increases the Federal 
     share of a discretionary grant for a privatized airport to 
     70%.


                  170. innovative financing techniques

     House bill
       This section allows 12 more grants for innovative financing 
     techniques to be issued but eliminates payment of interest 
     and commercial bond insurance as permitted techniques since 
     those are now covered by section 508(b). It adds payment of 
     interest for large airports as a permitted technique.
     Senate amendment
       No provision.
     Conference substitute
       Payment of interest for small airports is put back into the 
     innovative financing section. Instead of allowing AIP to be 
     used by large airports for payment of interest, the 
     substitute allows PFCs to be used for this purpose.


                     171. airport security program

     House bill
       This section directs the FAA to continue to administer the 
     program to test and evaluate innovate aviation security 
     systems and technologies at airports even though most 
     security responsibilities have been transferred to the 
     Department of Homeland Security.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


         172. low-emission airport vehicles and infrastructure

     House bill
       Requires DOT and EPA to ensure that an airport will receive 
     appropriate emission credits for carrying out a project that 
     will reduce emissions at that airport. Directs DOT to carry 
     out a pilot program at no more than 10 airports under which 
     an airport may use AIP grants of not more than $500 thousand 
     to retrofit equipment used at the airport so that they 
     produce lower emissions. Makes projects that will reduce 
     emissions at airports eligible for AIP grants. States that 
     with respect to low-emission equipment that is not already 
     eligible to be purchased with AIP funds, the only portion of 
     the cost that is eligible to be paid for with AIP funds is 
     the portion that the FAA determines represents the increase 
     in the cost of the low-emission equipment over a similar 
     piece of equipment that is not low-emission. Defines low-
     emission equipment.

[[Page H7763]]

     Senate amendment
       Adds that the DOT and EPA shall issue guidance on eligible 
     low-emission modifications and improvements and how sponsors 
     will demonstrate benefits.
     Conference substitute
       House bill and Senate amendment.


   173. compatible land use planning and projects by state and local 
                              governments

     House bill
       This section would allow the FAA to use AIP funds to make 
     grants to States and localities for land use planning near 
     airports so that the communities may make the use of land in 
     their jurisdictions more compatible with aircraft operations. 
     Conditions are imposed to avoid undermining the efforts of 
     the airport. This provision expires in 4 years.
     Senate amendment
       Ties funding for land use planning to national capacity 
     projects only, as opposed to a broader universe of large and 
     medium hubs in House bill. No sunset provision. Would apply 
     to airports even if they have a current Part 150 program.
     Conference substitute
       House provision with changes to ensure that an airport 
     sponsor is involved in the compatible land use planning and 
     compatible land use projects process. The Managers believe 
     that it is essential that the airport sponsor have the 
     ability to enter into an agreement with the State or local 
     government to develop a land use compatibility plan and that 
     the parties should jointly approve the compatible land use 
     plan.


 174. prohibition on requiring airports to provide rent-free space for 
                    federal aviation administration

     House bill
       This section requires FAA to pay rent for the space that it 
     uses at airports. Exceptions are provided for agreements that 
     might be negotiated with the airport and for land and 
     facilities needed to House air traffic controllers. TSA 
     covered by section 1527 of H.R. 2144.
     Senate amendment
       Similar provision but it also covers TSA use of airport 
     space.
     Conference substitute
       No provision.


                       175. midway island airport

     House bill
       Finds that the airport on Midway Island is critical to the 
     safety of flights over the Pacific Ocean. Directs DOT to 
     enter into an MOU with other government agencies to 
     facilitate the sale of fuel at the airport to help it become 
     self-sufficient. Allows the airport to transfer its 
     navigation aids to the FAA and requires the FAA to operate 
     and maintain them. Makes aviation trust fund money available 
     to the Interior Department for capital projects at the 
     airport.
     Senate amendment
       Allows the Department of the Interior to act as a public 
     agency for the purposes of sponsoring grants for an airport 
     that is required to be maintained for safety at a remote 
     location. Section 510(a) is similar to subsection (b) of the 
     House bill. Section 510(b) is similar to subsection (c) of 
     the House bill.
     Conference substitute
       House bill, with changes to how funding will be made 
     available to the Secretary of the Interior. It will be done 
     by a reimbursable agreement rather than a grant. Conferees 
     feel strongly that all of the Federal agencies involved in 
     the administration of Midway Island should work cooperatively 
     to ensure there is a working airfield.


                        176. intermodal planning

     House bill
       Requires medium and large hub airports building a new 
     airport, new runway, or runway extension to make available to 
     any metropolitan planning organization (MPO) in the area a 
     copy of the airport layout plan and airport master plan.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


             177. status review of marshall islands airport

     House bill
       Requires DOT to report within 6 months on whether the 
     airport at the Marshall Islands should get a grant under the 
     AIP.
     Senate amendment
       No provision.
     Conference substitute
       Makes the sponsors of airports located in the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     Palau eligible for grants from the Airport Improvement 
     Program Discretionary Fund and Small Airport Fund for fiscal 
     years 2004 through 2007. Conferees have made the entities in 
     section 188 eligible for AIP funding. The Conferees believe 
     that FAA should strongly consider an application for AIP 
     funds by any one of the entities.


 178. report on waiver of preference for buying goods produced in the 
                             united states

     House bill
       Requires DOT, within 90 days, to list all waivers granted 
     from the Buy America Act since the date of enactment of that 
     Act and the authority and rationale for that waiver.
     Senate amendment
       No provision.
     Conference substitute
       House bill but limited to waiver granted during the 
     previous 2 years.


                179. extension of expenditure authority

     House bill
       Allows grants to be made from the aviation trust fund for 
     the purposes specified in this Act.
     Senate amendment
       Similar provision but adds a conforming amendment to 
     section 9502(f).

                         Conference substitute

       Senate amendment plus additional language making a 
     technical correction to the domestic flight segment portion 
     of the airline ticket tax. Beginning with calendar year 2003, 
     the domestic flight segment portion of the airline ticket tax 
     is adjusted for inflation annually. The technical correction 
     clarifies that, in the case of amounts paid for 
     transportation before the beginning of the year in which the 
     transportation is to occur, the rate of tax is the rate in 
     effect for the calendar year in which the amount is paid. The 
     provision is effective for flight segments beginning after 
     December 31, 2002.
       The Managers strongly encourage the FAA and the 
     Occupational Safety and Health Administration to continue to 
     work under the framework established in the August 2000 
     Memorandum of Understanding and establish a coordination 
     mechanism to determine which existing and future OSHA 
     regulations can be applied to an aircraft in operation 
     without compromising aviation safety.
       The Managers are aware of concerns about the impact of 
     aircraft noise on residential areas, including those 
     surrounding the communities of the four airports of the Port 
     Authority of New York and New Jersey (PANYNJ). Although the 
     FAA determined that aircraft noise pollution was the 
     strongest and most widespread concern raised by the public at 
     its twenty-eight public scoping meetings in five states in 
     2001, the PANYNJ has not undertaken action to mitigating 
     residential complaints in the neighborhoods surrounding its 
     airports. Therefore, it is the hope of the Conference 
     Committee that the PANYNJ will work in good faith with the 
     New York and New Jersey Congressional delegations to address 
     these issues, including undertaking a part 150 study to 
     qualify for Federal residential soundproofing dollars or to 
     begin undertaking residential soundproofing in the most 
     affected areas in the footprint with particular focus on the 
     neighborhoods surrounding LaGuardia Airport.
       The Managers strongly encourage the FAA to work with state 
     aviation agencies and universities to develop a national, 
     innovative program that would offer practical training and 
     information resources for those who operate, maintain, and 
     administer public use airports across the nation on topics 
     such as pavement maintenance, snow and ice control, project 
     development and funding, wildlife control and safety and 
     operations. To further this program, the Committee recommends 
     that FAA consult with state aviation agencies and 
     universities that have created similar programs for general 
     aviation airports in their state.
       The legislation includes a section that amends section 4(b) 
     of the Rivers and Harbors Appropriations Act of 1884 to 
     clarify that the restriction in that section with respect to 
     taxes on vessels or other water craft does not apply to 
     property taxes on vessels or water craft, other than vessels 
     or water craft that are primarily engaged in foreign 
     commerce, so long as those taxes are constitutionally 
     permissible under long-standing judicial interpretations of 
     the Commerce Clause. To assure the consistent application of 
     legal principles concerning non-Federal taxation of 
     interstate transportation equipment, the amendment in this 
     section is effective as of November 25, 2002. Over the years, 
     the U.S. Supreme Court has ruled on the constitutionality of 
     property taxes on various forms of interstate and 
     international transportation equipment in a number of cases, 
     including but not limited to Pullman's Palace Car Co. v. 
     Pennsylvania, 141 U.S. 18 (1891) (railroad rolling stock); 
     Ott v. Mississippi Valley Barge Line Co., 336 U.S. 169 (1949) 
     (barges on inland waterways); and BraniffAirways, Inc. v. 
     Nebraska State Board of Equalization, 347 U.S. 590 (1954) 
     (domestic aircraft); Complete Auto Transit, Inc. v. Brady, 
     430 U.S. 274 (1977); and Japan Line v. County of Los Angeles, 
     441 U.S. 434 (1979). This line of decisions has sustained 
     property taxes in interstate transportation cases when the 
     tax is applied to an activity with a substantial nexus with 
     the taxing entity, is fairly apportioned, does not 
     discriminate against interstate commerce, and is fairly 
     related to the services provided by the taxing entity. The 
     exception for state and local taxes on vessels or watercraft 
     that are primarily engaged in foreign commerce implements the 
     holding of the Japan Line case. The committee notes that 
     section 4(b) does not affect whether sales or income taxes 
     are applicable with respect to vessels. The purpose of 
     section 4(b) was to clarify existing law with respect to 
     Constitutionally permitted fees and taxes on a vessel, but 
     also to prohibit fees and taxes imposed on a vessel simply 
     because that vessel sails through a given jurisdiction.
       The Managers are aware of the concerns raised about the 
     recent increase in shipment interruptions during the 
     transportation of essential radiopharmaceuticals due to new 
     air transportation security mandates. The

[[Page H7764]]

     Committee recommends that the Secretary of Homeland Security, 
     in consultation with the Secretary of Transportation, review 
     current procedures for shipment of radiopharmaceuticals and 
     recommend actions to ensure the timely delivery of them. If 
     the Secretary of DHS undertakes this study, the Secretary 
     shall also submit recommendations to the House Committee on 
     Transportation and Infrastructure and the Senate Committee on 
     Commerce, Science, and Transportation on the actions taken to 
     ensure that timely delivery of these medical products by 
     commercial aircraft no later than 180 days after the 
     enactment of the Act.

     From the Committee on Transportation and Infrastructure, for 
     consideration of the House bill and the Senate amendment, and 
     modifications committed to conference:
     Don Young,
     John L. Mica,
     Vernon J. Ehlers,
     Robin Hayes,
     Denny Rehberg,
     Johnny Isakson,
     From the Committee on Energy and Commerce, for consideration 
     of sec. 521 of the House bill and sec. 508 of the Senate 
     amendment, and modifications committed to conference:
     Billy Tauzin,
     Joe Barton,
     From the Committee on Government Reform, for consideration of 
     secs. 404 and 438 of the House bill and sec. 108 of the 
     Senate amendment, and modifications committed to conference:
     Tom Davis,
     Christopher Shays,
     From the Committee on the Judiciary, for consideration of 
     secs. 106, 301, 405, 505, and 507 of the Senate amendment, 
     and modifications committed to conference:
     F. James Sensenbrenner,
     Howard Coble,
     From the Committee on Resources, for consideration of secs. 
     204 and 409 of the House bill and sec. 201 of the Senate 
     amendment, and modifications committed to conference:
     Richard Pombo,
     Jim Gibbons,
     Provided that Mr. Renzi is appointed in lieu of Mr. Pombo for 
     consideration of sec. 409 of the House bill, and 
     modifications committee to conference:
     Rick Renzi,
     From the Committee on Science, for consideration of sec. 102 
     of the House bill and secs. 102, 104, 621, 622, 641, 642, 
     661, 662, 663, 667 and 669 of the Senate amendment, and 
     modifications committed to conference:
     Sherwood Boehlert,
     Dana Rohrabacher,
     From the Committee on Ways and Means, for consideration of 
     title VI of the House bill and title VII of the Senate 
     amendment, and modifications committed to conference:
     William Thomas,
     Dave Camp,
                                Managers on the Part of the House.

     John McCain,
     Ted Stevens,
     Conrad Burns,
     Trent Lott,
     Kay Bailey Hutchison,
     Managers on the Part of the Senate.

                          ____________________