[House Report 108-143]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-143

======================================================================



 
          FLIGHT 100--CENTURY OF AVIATION REAUTHORIZATION ACT

                                _______
                                

  June 6, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

     Mr. Young of Alaska, from the Committee on Transportation and 
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 2115]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred 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 considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Flight 100--Century 
of Aviation Reauthorization Act''.
  (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Effective date.

                        TITLE I--AUTHORIZATIONS

Sec. 101. Federal Aviation Administration operations.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. Airport planning and development and noise compatibility 
planning and programs.
Sec. 104. Additional reauthorizations.
Sec. 105. Insurance.
Sec. 106. Pilot program for innovative financing for terminal 
automation replacement systems.

                 TITLE II--AIRPORT PROJECT STREAMLINING

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Promotion of new runways.
Sec. 204. Airport project streamlining.
Sec. 205. Governor's certificate.
Sec. 206. Construction of certain airport capacity projects.
Sec. 207. Limitations.
Sec. 208. Relationship to other requirements.

                   TITLE III--FEDERAL AVIATION REFORM

Sec. 301. Management advisory committee members.
Sec. 302. Reorganization of the Air Traffic Services Subcommittee.
Sec. 303. Clarification of the responsibilities of the Chief Operating 
Officer.
Sec. 304. Small Business Ombudsman.
Sec. 305. FAA purchase cards.

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

Sec. 401. Improvement of aviation information collection.
Sec. 402. Data on incidents and complaints involving passenger and 
baggage security screening.
Sec. 403. Definitions.
Sec. 404. Clarifications to procurement authority.
Sec. 405. Low-emission airport vehicles and ground support equipment.
Sec. 406. Streamlining of the passenger facility fee program.
Sec. 407. Financial management of passenger facility fees.
Sec. 408. Government contracting for air transportation.
Sec. 409. Overflights of national parks.
Sec. 410. Collaborative decisionmaking pilot program.
Sec. 411. Availability of aircraft accident site information.
Sec. 412. Slot exemptions at Ronald Reagan Washington National Airport.
Sec. 413. Notice concerning aircraft assembly.
Sec. 414. Special rule to promote air service to small communities.
Sec. 415. Small community air service.
Sec. 416. Type certificates.
Sec. 417. Design organization certificates.
Sec. 418. Counterfeit or fraudulently represented parts violations.
Sec. 419. Runway safety standards.
Sec. 420. Availability of maintenance information.
Sec. 421. Certificate actions in response to a security threat.
Sec. 422. Flight attendant certification.
Sec. 423. Civil penalty for closure of an airport without providing 
sufficient notice.
Sec. 424. Noise exposure maps.
Sec. 425. Amendment of general fee schedule provision.
Sec. 426. Improvement of curriculum standards for aviation maintenance 
technicians.
Sec. 427. Task force on future of air transportation system.
Sec. 428. Air quality in aircraft cabins.
Sec. 429. Recommendations concerning travel agents.
Sec. 430. Task force on enhanced transfer of applications of technology 
for military aircraft to civilian aircraft.
Sec. 431. Reimbursement for losses incurred by general aviation 
entities.
Sec. 432. Impasse procedures for National Association of Air Traffic 
Specialists.
Sec. 433. FAA inspector training.
Sec. 434. Prohibition on air traffic control privatization.
Sec. 435. Airfares for members of the Armed Forces.
Sec. 436. Air carriers required to honor tickets for suspended air 
service.
Sec. 437. International air show.
Sec. 438. Definition of air traffic controller.
Sec. 439. Justification for air defense identification zone.
Sec. 440. International air transportation.
Sec. 441. Reimbursement of air carriers for certain screening and 
related activities.
Sec. 442. General aviation flights at Ronald Reagan Washington National 
Airport.

                      TITLE V--AIRPORT DEVELOPMENT

Sec. 501. Definitions.
Sec. 502. Replacement of baggage conveyor systems.
Sec. 503. Security costs at small airports.
Sec. 504. Withholding of program application approval.
Sec. 505. Runway safety areas.
Sec. 506. Disposition of land acquired for noise compatibility 
purposes.
Sec. 507. Grant assurances.
Sec. 508. Allowable project costs.
Sec. 509. Apportionments to primary airports.
Sec. 510. Cargo airports.
Sec. 511. Considerations in making discretionary grants.
Sec. 512. Flexible funding for nonprimary airport apportionments.
Sec. 513. Use of apportioned amounts.
Sec. 514. Military airport program.
Sec. 515. Terminal development costs.
Sec. 516. Contract towers.
Sec. 517. Airport safety data collection.
Sec. 518. Airport privatization pilot program.
Sec. 519. Innovative financing techniques.
Sec. 520. Airport security program.
Sec. 521. Low-emission airport vehicles and infrastructure.
Sec. 522. Compatible land use planning and projects by State and local 
governments.
Sec. 523. Prohibition on requiring airports to provide rent-free space 
for Federal Aviation Administration.
Sec. 524. Midway Island Airport.

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. EFFECTIVE DATE.

  Except as otherwise expressly provided, this Act and the amendments 
made by this Act shall be effective on the date of enactment of this 
Act.

                        TITLE I--AUTHORIZATIONS

SEC. 101. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

  (a) In General.--Section 106(k) is amended to read as follows:
  ``(k) Authorization of Appropriations.--
          ``(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.
          ``(2) Operation of center for management and development.--
        Out of amounts appropriated under paragraph (1), such sums as 
        may be necessary may be expended by the Center for Management 
        Development of the Federal Aviation Administration to operate 
        at least 200 courses each year and to support associated 
        student travel for both residential and field courses.
          ``(3) Air traffic management system.--Out of amounts 
        appropriated under paragraph (1), such sums as may be necessary 
        may be expended by the Federal Aviation Administration for the 
        establishment and operation of a new office to develop, in 
        coordination with the Department of Defense, the National 
        Aeronautics and Space Administration, and the Department of 
        Homeland Security, the next generation air traffic management 
        system and a transition plan for the implementation of that 
        system. The office shall be known as the `Next Generation Air 
        Transportation System Joint Program Office'.
          ``(4) Helicopter and tiltrotor procedures.--Out of amounts 
        appropriated under paragraph (1), such sums as may be necessary 
        may be expended by the Federal Aviation Administration for the 
        establishment of helicopter and tiltrotor approach and 
        departure procedures using advanced technologies, such as the 
        Global Positioning System and automatic dependent surveillance, 
        to permit operations in adverse weather conditions to meet the 
        needs of air ambulance services.
          ``(5) Additional air traffic controllers.--Out of amounts 
        appropriated under paragraph (1), such sums as may be necessary 
        may be expended to hire additional air traffic controllers in 
        order to meet increasing air traffic demands and to address the 
        anticipated increase in the retirement of experienced air 
        traffic controllers.
          ``(6) Completion of alaska aviation safety project.--Out of 
        amounts appropriated under paragraph (1), $6,000,000 may be 
        expended for the completion of the Alaska aviation safety 
        project with respect to the 3 dimensional mapping of Alaska's 
        main aviation corridors.
          ``(7) Aviation safety reporting system.--Out of amounts 
        appropriated under paragraph (1), $3,400,000 may be expended on 
        the Aviation Safety Reporting System.''.
  (b) 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 airline data and conduct 
analyses of such data in the Bureau of Transportation Statistics of the 
Department of Transportation.
  (c) Human Capital Workforce Strategy.--
          (1) Development.--The Administrator of the Federal Aviation 
        Administration 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 
        called for in the June 2002 report of the General Accounting 
        Office.
          (2) Completion date.--The Administrator shall complete 
        development of the strategy not later than 1 year after the 
        date of enactment of this Act.
          (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.
  (d) Goals and Objectives of Aviation Safety Reporting System.--Not 
later than 90 days after the date of enactment of this Act, the 
Administrator 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. 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 subsection (b);
          (3) by redesignating (c) as subsection (b);
          (4) by striking subsections (d) and (e) and inserting 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), $20,000,000 for each of 
fiscal years 2004 through 2007 may be used to document and demonstrate 
the operational benefits of a wake vortex advisory system.
  ``(e) Ground-Based Precision Navigational Aids.--Of amounts 
appropriated under subsection (a), $20,000,000 for each of fiscal years 
2004 to 2007 may be used to establish a program for the installation, 
operation, and maintenance of a closed-loop 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 has been 
certified or approved by the Administrator.''; and
          (5) in subsection (f)--
                  (A) by striking ``for fiscal years beginning after 
                September 30, 2000''; and
                  (B) by inserting ``may be used'' after ``necessary''.

SEC. 103. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY 
                    PLANNING AND PROGRAMS.

  (a) Authorization.--Section 48103 is amended--
          (1) by striking ``September 30, 1998'' and inserting 
        ``September 30, 2003''; and
          (2) by striking paragraphs (1) through (5) and inserting:
          ``(1) $3,400,000,000 for fiscal year 2004;
          ``(2) $3,600,000,000 for fiscal year 2005;
          ``(3) $3,800,000,000 for fiscal year 2006; and
          ``(4) $4,000,000,000 for fiscal year 2007.''.
  (b) Obligational Authority.--Section 47104(c) is amended by striking 
``September 30, 2003'' and inserting ``September 30, 2007''.

SEC. 104. ADDITIONAL REAUTHORIZATIONS.

  (a) Contract Air Traffic Control Tower Pilot Program.--Section 
47124(b)(3)(E) is amended by striking ``$6,000,000 per fiscal year'' 
and inserting ``$6,500,000 for fiscal year 2004, $7,000,000 for fiscal 
year 2005, $7,500,000 for fiscal year 2006, and $8,000,000 for fiscal 
year 2007''.
  (b) Small Community Air Service.--Section 41743(e)(2) is amended--
          (1) by striking ``and'' the first place it appears and 
        inserting a comma; and
          (2) by inserting after ``2003'' the following ``, and 
        $35,000,000 for each of fiscal years 2004 through 2008''.
  (c) Regional Air Service Incentive Program.--Section 41766 is amended 
by striking ``2003'' and inserting ``2007''.
  (d) Funding for Aviation Programs.--Section 106 of the Wendell H. 
Ford Aviation Investment and Reform Act for the 21st Century (49 U.S.C. 
48101 note) is amended by striking ``2003'' each place it appears and 
inserting ``2007''.
  (e) Design-Build Contracting.--Section 139(e) of the Wendell H. Ford 
Aviation Investment and Reform Act for the 21st Century (49 U.S.C. 
47104 note) is amended by striking ``2003'' and inserting ``2007''.
  (f) Metropolitan Washington Airports Authority.--Section 49108 is 
amended by striking ``2004'' and inserting ``2007''.

SEC. 105. INSURANCE.

  (a) Termination.--Section 44310 is amended to read as follows:

``Sec. 44310. Termination date

  ``Effective December 31, 2007, the authority of the Secretary of 
Transportation to provide insurance and reinsurance under this chapter 
shall be limited to--
          ``(1) the operation of an aircraft by an air carrier or 
        foreign air carrier in foreign air commerce or between at least 
        2 points, all of which are outside the United States; and
          ``(2) insurance obtained by a department, agency, or 
        instrumentality of the United States under section 44305.''.
  (b) Extension of Policies.--Section 44302(f)(1) is amended by 
striking ``through December 31, 2004,'' and inserting ``thereafter''.
  (c) 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 the United States manufacturer (as defined in section 
44310) of the aircraft of the air carrier involved.''.
  (d) Vendors, Agents, Subcontractors, and Manufacturers.--
          (1) In general.--Chapter 443 is amended--
                  (A) by redesignating section 44310 (as amended by 
                subsection (a) of this section) as section 44311; and
                  (B) by inserting after section 44309 the following:

``Sec. 44310. Vendors, agents, subcontractors, and manufacturers

  ``(a) In General.--The Secretary of Transportation may extend the 
application of any provision of this chapter to a loss by a vendor, 
agent, and subcontractor of an air carrier and a United States 
manufacturer of an aircraft used by an air carrier but only to the 
extent that the loss involved an aircraft of an air carrier.
  ``(b) United States Manufacturer Defined.--In this section, the term 
`United States manufacturer' means a manufacturer incorporated under 
the laws of a State of the United States and having its principal place 
of business in the United States.''.
          (2) Conforming amendment.--The analysis for chapter 443 is 
        amended by striking the item relating to section 44310 and 
        inserting the following:

``44310. Vendors, agents, subcontractors, and manufacturers.
``44311. Termination date.''.

  (e) Technical Corrections.--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''.

SEC. 106. PILOT PROGRAM FOR INNOVATIVE FINANCING FOR TERMINAL 
                    AUTOMATION REPLACEMENT SYSTEMS.

  (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 a contract, subject to section 
1341 of title 31, United States Code, of more than one, but not more 
than 20, fiscal years to purchase and install terminal automation 
replacement systems 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, $200,000,000 shall be used to carry out this section.

                 TITLE II--AIRPORT PROJECT STREAMLINING

SEC. 201. SHORT TITLE.

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

SEC. 202. 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. 203. PROMOTION OF NEW RUNWAYS.

  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 47178.''.

SEC. 204. AIRPORT PROJECT STREAMLINING.

  (a) In General.--Chapter 471 is amended by inserting after section 
47153 the following:

             ``SUBCHAPTER III--AIRPORT PROJECT STREAMLINING

``Sec. 47171. DOT as lead agency

  ``(a) Airport Project Review Process.--The Secretary of 
Transportation shall develop and implement a coordinated review process 
for airport capacity enhancement projects at congested airports.
  ``(b) Coordinated Reviews.--
          ``(1) In general.--The coordinated review process under this 
        section shall provide that all environmental reviews, analyses, 
        opinions, permits, licenses, and approvals that must be issued 
        or made by a Federal agency or airport sponsor for an airport 
        capacity enhancement project at a congested airport will be 
        conducted concurrently, to the maximum extent practicable, and 
        completed within a time period established by the Secretary, in 
        cooperation with the agencies identified under subsection (c) 
        with respect to the project.
          ``(2) Agency participation.--Each Federal agency identified 
        under subsection (c) shall formulate and implement 
        administrative, policy, and procedural mechanisms to enable the 
        agency to ensure completion of environmental reviews, analyses, 
        opinions, permits, licenses, and approvals described in 
        paragraph (1) in a timely and environmentally responsible 
        manner.
  ``(c) Identification of Jurisdictional Agencies.--With respect to 
each airport capacity enhancement project at a congested airport, 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.
  ``(d) State Authority.--If a coordinated review process is being 
implemented under this section by the Secretary with respect to a 
project at an airport within the boundaries of a State, 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.
  ``(e) 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 (c) with 
respect to the project and the airport sponsor.
  ``(f) 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 (b) for the project, the 
        Secretary shall notify, within 30 days of the date of such 
        determination, the Committee on Transportation and 
        Infrastructure of the House of Representatives, the Committee 
        on Commerce, Science, and Transportation of the Senate, 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.
  ``(g) 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 with respect to an airport capacity 
enhancement project at a congested airport 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.
  ``(h) Alternatives Analysis.--The Secretary shall determine the 
reasonable alternatives to an airport capacity enhancement project at a 
congested airport. Any other Federal 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.
  ``(i) Solicitation and Consideration of Comments.--In applying 
subsections (g) and (h), the Secretary shall solicit and consider 
comments from interested persons and governmental entities.
  ``(j) 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. Categorical exclusions

  ``Not later than 120 days after the date of enactment of this 
section, the Secretary of Transportation shall develop and publish a 
list of categorical exclusions from the requirement that an 
environmental assessment or an environmental impact statement be 
prepared under the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) for projects at airports.

``Sec. 47173. Access restrictions to ease construction

  ``At the request of an airport sponsor for a congested airport, the 
Secretary of Transportation 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 imposition of the restriction--
          ``(1) is necessary to mitigate those impacts and expedite 
        construction of the runway;
          ``(2) is the most appropriate and a cost-effective measure to 
        mitigate those impacts, taking into consideration any 
        environmental tradeoffs associated with the restriction; 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.

``Sec. 47174. Airport revenue to pay for mitigation

  ``(a) In General.--Notwithstanding section 47107(b), section 47133, 
or any other provision of this title, the Secretary of Transportation 
may allow an airport sponsor carrying out an airport capacity 
enhancement project at a congested airport to make payments, out of 
revenues generated at the airport (including local taxes on aviation 
fuel), 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 
        support, the preferred alternative for the project in the 
        documentation prepared pursuant to the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 et seq.);
          ``(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.
  ``(b) Mitigation of Aircraft Noise.--Mitigation measures described in 
subsection (a) may include the insulation of residential buildings and 
buildings used primarily for educational or medical purposes to 
mitigate the effects of aircraft noise and the improvement of such 
buildings as required for the insulation of the buildings under local 
building codes.

``Sec. 47175. 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. 47176. 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. 47177. Designation of aviation safety and aviation security 
                    projects for priority environmental review

  ``(a) In General.--The Administrator of the Federal Aviation 
Administration may designate an aviation safety or aviation security 
project for priority environmental review. The Administrator may not 
delegate this designation authority.
  ``(b) Project Designation Criteria.--The Administrator shall 
establish guidelines for the designation of an aviation safety or 
aviation security project for priority environmental review. Such 
guidelines shall 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 of 1969 (42 U.S.C. 4321 et seq.);
          ``(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.
  ``(c) Coordinated Environmental Reviews.--
          ``(1) Timelines and high priority for coordinated 
        environmental reviews.--The Administrator, in consultation with 
        the heads of affected agencies, shall establish specific 
        timelines for the coordinated environmental review of an 
        aviation safety or aviation security project designated under 
        subsection (a). Such timelines shall be consistent with the 
        timelines established in existing laws and regulations. Each 
        Federal agency with responsibility for project environmental 
        reviews, analyses, opinions, permits, licenses, and approvals 
        shall accord any such review a high priority and shall conduct 
        the review expeditiously and, to the maximum extent possible, 
        concurrently with other such reviews.
          ``(2) Agency participation.--Each Federal agency identified 
        under subsection (c) shall formulate and implement 
        administrative, policy, and procedural mechanisms to enable the 
        agency to ensure completion of environmental reviews, analyses, 
        opinions, permits, licenses, and approvals described in 
        paragraph (1) in a timely and environmentally responsible 
        manner.
  ``(d) State Participation.--
          ``(1) Invitation to participate.--If a priority environmental 
        review process is being implemented under this section with 
        respect to a project within the boundaries of a State with 
        applicable State environmental requirements and approvals, the 
        Administrator shall invite the State to participate in the 
        process.
          ``(2) State choice.--A State invited to participate in a 
        priority environmental review process, consistent with State 
        law, may choose to participate in such process and direct that 
        all State agencies, which have jurisdiction by law to conduct 
        an environmental review or analysis of the project to determine 
        whether to issue an environmentally related permit, license, or 
        approval for the project, be subject to the process.
  ``(e) Failure To Give Priority Review.--
          ``(1) Notice.--If the Secretary of Transportation determines 
        that a Federal agency or a participating State is not complying 
        with the requirements of this section and that such 
        noncompliance is undermining the environmental review process, 
        the Secretary shall notify, within 30 days of such 
        determination, the head of the Federal agency or, with respect 
        to a State agency, the Governor of the State.
          ``(2) Report to secretary.--A Federal agency that receives a 
        copy of a notification relating to that agency made by the 
        Secretary under paragraph (1) shall submit, within 30 days 
        after receiving such copy, a written report to the Secretary 
        explaining the reasons for the situation described in the 
        notification and what remedial actions the agency intends to 
        take.
          ``(3) Notification of ceq and committees.--If the Secretary 
        determines that a Federal agency has not satisfactorily 
        addressed the problems within a reasonable period of time 
        following a notification under paragraph (1), the Secretary 
        shall notify 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.
  ``(f) Procedural provisions.--The procedures set forth in subsections 
(c), (e), (g), (h), and (i) of section 47171 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.
  ``(g) Definitions.--In this section, the following definitions apply:
          ``(1) 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; or
                  ``(ii) is necessary for an airport to comply with 
                part 139 of title 14, Code of Federal Regulations 
                (relating to airport certification).
          ``(2) Aviation security project.--The term `aviation security 
        project' means a security project at an airport required by the 
        Department of Homeland Security.
          ``(3) Federal agency.--The term `Federal agency' means a 
        department or agency of the United States Government.

``Sec. 47178. 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.''.
  (b) Conforming Amendment.--The analysis for chapter 471 of such title 
is amended by adding at the end the following:

             ``SUBCHAPTER III--AIRPORT PROJECT STREAMLINING

``47171. DOT as lead agency.
``47172. Categorical exclusions.
``47173. Access restrictions to ease construction.
``47174. Airport revenue to pay for mitigation.
``47175. Airport funding of FAA staff.
``47176. Authorization of appropriations.
``47177. Designation of aviation safety and aviation security projects 
for priority environmental review.
``47178. Definitions.''.

SEC. 205. GOVERNOR'S CERTIFICATE.

  Section 47106(c) of title 49, United States Code, is amended--
          (1) in paragraph (1)--
                  (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (A)(ii);
                  (B) by striking subparagraph (B); and
                  (C) by redesignating subparagraph (C) as subparagraph 
                (B);
          (2) in paragraph (2)(A) by striking ``stage 2'' and inserting 
        ``stage 3'';
          (3) by striking paragraph (4); and
          (4) by redesignating paragraph (5) as paragraph (4).

SEC. 206. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY PROJECTS.

  Section 47504(c)(2) of title 49, United States Code, 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 47178) 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 47178) even 
                if that airport has not met the requirements of part 
                150 of title 14, Code of Federal Regulations.''.

SEC. 207. LIMITATIONS.

  Nothing in this title, 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. 208. RELATIONSHIP TO OTHER REQUIREMENTS.

  The coordinated review process required under the amendments made by 
this title 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).

                   TITLE III--FEDERAL AVIATION REFORM

SEC. 301. 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. 302. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE.

  Section 106(p) is amended--
          (1) in paragraph (3)--
                  (A) by striking ``(A) No federal officer or 
                employee.--'';
                  (B) by striking ``or (2)(E)'' and inserting ``or to 
                the Air Traffic Services Board''; and
                  (C) by striking subparagraphs (B) and (C);
          (2) in paragraph (4)(C) by inserting ``or Air Traffic 
        Services Board'' after ``Council'' each place it appears;
          (3) in paragraph (5) by inserting ``, the Air Traffic 
        Services Board,'' after ``Council'';
          (4) in paragraph (6)(C)--
                  (A) by striking ``subcommittee'' in the subparagraph 
                heading and inserting ``board'';
                  (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 Board''; 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 Board shall be the members 
                of the Air Traffic Services Subcommittee of the Council 
                on the day before the date of enactment of the Flight 
                100--Century of Aviation Reauthorization Act who shall 
                serve as members of the Board until their respective 
                terms as members of the Subcommittee would have ended 
                under this subparagraph, as in effect on such day.'';
          (5) in paragraph (6)(D) by striking ``under paragraph 
        (2)(E)'' and inserting ``to the Board'';
          (6) in paragraph (6)(E) by inserting ``or Board'' after 
        ``Council'';
          (7) in paragraph (6)(F) by inserting ``of the Council or 
        Board'' after ``member'';
          (8) in the second sentence of subparagraph (6)(G)--
                  (A) by striking ``Council'' and inserting ``Board''; 
                and
                  (B) by striking ``appointed under paragraph (2)(E)'';
          (9) in paragraph (6)(H)--
                  (A) by striking ``subcommittee'' in the subparagraph 
                heading and inserting ``board'';
                  (B) by striking ``under paragraph (2)(E)'' in clause 
                (i) and inserting ``to the Board''; and
                  (C) by striking ``Air Traffic Services Subcommittee'' 
                and inserting ``Board'';
          (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 
                ``Board'';
          (11) in paragraph (6)(I)(ii)--
                  (A) by striking ``appointed under paragraph (2)(E)'' 
                and inserting ``who is a member of the Board''; and
                  (B) by striking ``Subcommittee'' and inserting 
                ``Board'';
          (12) in paragraph (6)(K) by inserting ``or Board'' after 
        ``Council'';
          (13) in paragraph (6)(L) by inserting ``or Board'' after 
        ``Council'' each place it appears; and
          (14) in paragraph (7)--
                  (A) by striking ``subcommittee'' in the paragraph 
                heading and inserting ``board'';
                  (B) by striking subparagraph (A) and inserting the 
                following:
                  ``(A) Establishment.--The Administrator shall 
                establish a board 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 Flight 100--Century of Aviation 
                Reauthorization Act, into such board. The board shall 
                be known as the Air Traffic Services Board (in this 
                subsection referred to as the `Board').'';
                  (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 Board 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.
                                  ``(V) Organizational development.
                                  ``(VI) Labor relations.
                  ``(C) Prohibitions on members of board.--No member of 
                the Board 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 
                ``Board'';
                  (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) and inserting ``The Secretary shall 
                submit the budget recommendations referred to in clause 
                (v) to the President who shall transmit such 
                recommendations to the Committee on Transportation and 
                Infrastructure and the Committee on Appropriations of 
                the House of Representatives and the Committee on 
                Commerce, Science, and Transportation and the Committee 
                on Appropriations of the Senate together with the 
                annual budget request of the Federal Aviation 
                Administration.'';
                  (J) by striking subparagraph (F) (as so redesignated) 
                and inserting the following:
                  ``(F) Board personnel matters.--The Board may appoint 
                and terminate any personnel that may be necessary to 
                enable the Board to perform its duties, and may procure 
                temporary and intermittent services under section 
                40122.'';
                  (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 ``Board'';
                  (L) in subparagraph (H) (as so redesignated)--
                          (i) by striking ``Subcommittee'' each place 
                        it appears and inserting ``Board'';
                          (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 Board such sums as may be necessary 
                for the Board to carry out its activities.''.

SEC. 303. 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 
        Board'';
          (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 Board'';
          (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 Board''; 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. 304. SMALL BUSINESS OMBUDSMAN.

  Section 106 is amended by adding at the end the following:
  ``(s) Small Business Ombudsman.--
          ``(1) Establishment.--There shall be in the Administration a 
        Small Business Ombudsman.
          ``(2) General duties and responsibilities.--The Ombudsman 
        shall--
                  ``(A) be appointed by the Administrator;
                  ``(B) serve as a liaison with small businesses in the 
                aviation industry;
                  ``(C) be consulted when the Administrator proposes 
                regulations that may affect small businesses in the 
                aviation industry;
                  ``(D) provide assistance to small businesses in 
                resolving disputes with the Administration; and
                  ``(E) report directly to the Administrator.''.

SEC. 305. 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.

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

SEC. 401. 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.
  (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. 402. 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 the Secretary of Transportation in the publication of 
        data under paragraph (1), the Secretary of Homeland Security 
        shall submit monthly to the Secretary of Transportation a 
        report on the number of complaints about security screening 
        received by the Secretary of Homeland Security.''.

SEC. 403. DEFINITIONS.

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

SEC. 404. CLARIFICATIONS TO PROCUREMENT AUTHORITY.

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

SEC. 405. 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 the acquisition or conversion of 
                ground support equipment or airport-owned vehicles used 
                at a commercial service airport with, or to, low-
                emission technology (as defined in section 47102) or 
                cleaner burning conventional fuels, or the retrofitting 
                of such equipment or vehicles that are powered by a 
                diesel or gasoline engine with emission control 
                technologies certified or verified by the Environmental 
                Protection Agency to reduce emissions, if the airport 
                is located in an air quality nonattainment 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 47138.''.
  (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 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;
          (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.''.

SEC. 406. 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 will 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 who may be 
        affected, which 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 Web site.
          ``(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. This shall include--
                  ``(A) information that the Secretary may require by 
                regulation on each project for which authority to 
                impose a passenger facility fee is sought;
                  ``(B) the amount of revenue from passenger facility 
                fees that is proposed to be collected for each project; 
                and
                  ``(C) the level of the passenger facility fee that is 
                proposed.
          ``(4) Acknowledgement of receipt and indication of 
        objection.--The Secretary shall acknowledge receipt of the 
        notice and indicate any objection to the imposition of a 
        passenger facility fee under this subsection for any project 
        identified in the notice within 30 days after receipt of the 
        eligible agency's notice.
          ``(5) Authority to impose fee.--Unless the Secretary objects 
        within 30 days after receipt of the eligible agency's notice, 
        the eligible agency is authorized to impose a passenger 
        facility fee in accordance with the terms of its notice under 
        this subsection.
          ``(6) Deadline.--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 not be in effect 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 of 
        the Secretary issued under section 46110.''.
  (c) Clarification of Applicability of PFCS 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 inserting 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''; 
        and
          (2) by striking the semicolon and inserting a period.

SEC. 407. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES.

  (a) In General.--Section 40117 is further amended by adding at the 
end the following:
  ``(m) Financial Management of Fees.--
          ``(1) Handling of fees.--
                  ``(A) Placement of fees in escrow account.--Subject 
                to subparagraph (B), passenger facility revenue held by 
                an air carrier or any of its agents shall be segregated 
                from the carrier's cash and other assets and placed in 
                an escrow account for the benefit of the eligible 
                agencies entitled to such revenue.
                  ``(B) Alternative method of compliance.--Instead of 
                placing amounts in an escrow account under subparagraph 
                (A), an air carrier may provide to the eligible agency 
                a letter of credit, bond, or other form of adequate and 
                immediately available security in an amount equal to 
                estimated remittable passenger facility fees for 180 
                days, to be assessed against later audit, upon which 
                security the eligible agency shall be entitled to draw 
                automatically, without necessity of any further legal 
                or judicial action to effectuate foreclosure.
          ``(2) Trust fund status.--If an air carrier or its agent 
        commingles 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.--An 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.--An 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.--An 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.''.
  (b) Effective Date.--
          (1) In general.--The amendment made by subsection (a) shall 
        take effect 60 days after the date of enactment of this Act.
          (2) Existing regulations.--Beginning 60 days after the date 
        of enactment of this Act, 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 have no force or effect.

SEC. 408. GOVERNMENT CONTRACTING FOR AIR TRANSPORTATION.

  (a) 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''.
  (b) Airlift Service.--Section 41106(b) is amended by inserting after 
``military department'' the following: ``, or by a person that has 
contracted with the Secretary of Defense or the Secretary of a military 
department,''.

SEC. 409. OVERFLIGHTS OF NATIONAL PARKS.

  (a) Air Tour Management Act Clarifications.--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), (b)(3)(B), and (b)(3)(C) by 
        inserting ``over a national park'' after ``operations'';
          (3) in subsection (b)(3)(D) by striking ``at the park'' and 
        inserting ``over a national park'';
          (4) in subsection (b)(3)(E) by inserting ``over a national 
        park'' after ``operations'' the first place it appears;
          (5) in subsections (c)(2)(A)(i) and (c)(2)(B) by inserting 
        ``over a national park'' after ``operations'';
          (6) in subsection (f)(1) by inserting ``over a national 
        park'' after ``operation'';
          (7) 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),'';
          (8) in subsection (f)(4)(B) by inserting ``over a national 
        park'' after ``operation''; and
          (9) in the heading for paragraph (4) of subsection (f) by 
        inserting ``over a national park'' after ``operation''.
  (b) Grand Canyon National Park Special Flight Rules Area Operation 
Curfew.--
          (1) In general.--The Administrator of the Federal Aviation 
        Administration may not restrict commercial Special Flight Rules 
        Area operations in the Dragon and Zuni Point corridors of the 
        Grand Canyon National Park during the period beginning 1 hour 
        after sunrise and ending 1 hour before sunset, unless required 
        for aviation safety purposes.
          (2) Effect on existing regulations.--Beginning on the date of 
        enactment of this Act, section 93.317 of title 14, Code of 
        Federal Regulations, shall not be in effect.

SEC. 410. 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 shall issue guidelines 
        concerning the pilot program. Such guidelines, at a minimum, 
        shall define 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 that 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.
  ``(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 3 airports to participate in 
the pilot program from among the most capacity-constrained airports in 
the country 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 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 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) 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 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.
  ``(i) Extension of Pilot Program.--At the end of the 2-year period 
for which the pilot program is authorized, the Administrator 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 (h) that the pilot 
program has facilitated more effective use of air traffic capacity and 
if the Secretary determines that the pilot program has had no adverse 
effect on airline competition or the availability of air services to 
communities. The Administrator shall select the additional airports to 
participate in the extended pilot program in the same manner in which 
airports were initially selected to participate.''.
  (b) Conforming Amendment.--The analysis for chapter 401 is amended by 
adding at the end the following:

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

SEC. 411. 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. 412. 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 
                        ``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.''.
  (e) Effect of Perimeter Rules on Competition and Air Service.--
          (1) Identification of other airports.--The Secretary of 
        Transportation shall identify airports (other than Ronald 
        Reagan Washington National Airport) that have imposed perimeter 
        rules like those in effect with respect to Ronald Reagan 
        Washington National Airport.
          (2) Limitation on applicability.--This subsection does not 
        apply to perimeter rules imposed by Federal law.
          (3) Study.--The Secretary shall conduct a study of the effect 
        that perimeter rules for airports identified under paragraph 
        (1) have on competition and on air service to communities 
        outside the perimeter.
          (4) Report.--Not later than 120 days after the date of 
        enactment of this Act, the Secretary shall transmit to Congress 
        a report on the results of the study.
  (f) Effect of Changing Definition of Commuter Air Carrier.--
          (1) Study.--The Secretary shall study the effects of changing 
        the definition of commuter air carrier in regulations of the 
        Federal Aviation Administration to increase the maximum size of 
        aircraft of such carriers to 76 seats or less on air service to 
        small communities and on commuter air carriers operating 
        aircraft with 56 seats or less.
          (2) Report.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall transmit to Congress 
        a report on the results of the study.

SEC. 413. NOTICE CONCERNING AIRCRAFT ASSEMBLY.

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

``Sec. 41722. Notice concerning aircraft assembly

  ``The Secretary of Transportation shall require, beginning after the 
last day of the 1-year 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 
striking the item relating to section 41721 and inserting the 
following:

``41721. Reports by carriers on incidents involving animals during air 
transport.
``41722. Notice concerning aircraft assembly.''.

SEC. 414. SPECIAL RULE TO PROMOTE AIR SERVICE TO SMALL COMMUNITIES.

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

``Sec. 41723. Special rule to promote air service to small communities

  ``In order to promote air service to small communities, the Secretary 
of Transportation shall permit an operator of a turbine powered or 
multiengine piston powered aircraft with 10 passenger seats or less (1) 
to provide air transportation between an airport that is a nonhub 
airport and another airport or between an airport that is not a 
commercial service airport and another airport, and (2) to sell 
individual seats on that aircraft at a negotiated price, if the 
aircraft is otherwise operated in accordance with parts 119 and 135 of 
title 14, Code of Federal Regulations, and the air transportation is 
otherwise provided in accordance with part 298 of such title 14.''.
  (b) Conforming Amendment.--The analysis for chapter 417 is further 
amended by adding at the end the following:

``41723. Special rule to promote air service to small communities.''.

SEC. 415. SMALL COMMUNITY AIR SERVICE.

  (a) Compensation Guidelines, Limitation, and Claims.--
          (1) Payment of promotional amounts.--Section 41737(a)(2) is 
        amended by inserting before the period at the end ``or may be 
        paid directly to the unit of local government having 
        jurisdiction over the eligible place served by the air 
        carrier''.
          (2) Local share.--Section 41737(a) is amended by adding at 
        the end the following:
          ``(3) Payment of cost by local government.--
                  ``(A) General requirement.--The guidelines may 
                require a unit of local government having jurisdiction 
                over an eligible place that is less than 170 miles from 
                a medium or large hub or less than 75 miles from a 
                small hub or a State within the boundaries of which the 
                eligible place is located to pay 2.5 percent in fiscal 
                year 2005, 5 percent in fiscal year 2006, 7.5 percent 
                in fiscal year 2007, and 10 percent in fiscal year 2008 
                of the amount of compensation payable under this 
                subchapter for air transportation with respect to the 
                eligible place to ensure the continuation of that air 
                transportation.
                  ``(B) Waiver.--The Secretary may waive the 
                requirement, or reduce the amount, of a payment from a 
                unit of local government under subparagraph (A) if the 
                Secretary finds that--
                          ``(i) the unit of local government lacks the 
                        ability to pay; and
                          ``(ii) the loss of essential air service to 
                        the eligible place would have an adverse effect 
                        on the eligible place's access to the national 
                        air transportation system.
                  ``(C) Determination of mileage.--In determining the 
                mileage between the eligible place and a hub under this 
                paragraph, the Secretary shall use the most commonly 
                used highway route between the eligible place and the 
                hub.''.
          (3) Authority to make agreements and incur obligations.--
        Section 41737(d) is amended--
                  (A) by striking ``(1) The Secretary'' and inserting 
                the ``The Secretary''; and
                  (B) by striking paragraph (2).
  (b) Airports Not Receiving Sufficient 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);
                  (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively; and
                  (C) in paragraph (4) (as so redesignated)--
                          (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 can be used in the fiscal year 
                in which it is received.''; and
          (4) in subsection (f) by striking ``pilot''.
  (c) Essential Air Service Authorization.--Section 41742 is amended--
          (1) in subsection (a)(2) by striking ``$15,000,000'' and 
        inserting ``$65,000,000'';
          (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).
  (d) Process for Discontinuing Certain Subsidies.--Section 41734 is 
amended by adding at the end the following:
  ``(i) Process for Discontinuing Certain Subsidies.--If the Secretary 
determines that no subsidy will be provided to a carrier to provide 
essential air service to an eligible place because the eligible place 
does not meet the requirements of section 332 of the Department of 
Transportation and Related Agencies Appropriations Act, 2000 (49 U.S.C. 
41731 note; 113 Stat. 1022), the Secretary shall notify the affected 
community that the subsidy will cease but shall continue to provide the 
subsidy for 90 days after providing the notice to the community.''.
  (e) Joint Proposals.--Section 41740 is amended by inserting ``, 
including joint fares,'' after ``joint proposals''.
  (f) Community and Regional Choice Program.--
          (1) In general.--Subchapter II of chapter 417 is amended by 
        adding at the end the following:

``Sec. 41745. Community and regional choice program

  ``(a) Establishment.--The Secretary of Transportation shall establish 
an alternate essential air service pilot program in accordance with the 
requirements of this section.
  ``(b) Compensation 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 pay 
compensation 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.
  ``(c) Use of Compensation.--A unit of local government or State 
receiving compensation for an eligible place under the program shall 
use the compensation for any of the following purposes:
          ``(1) To provide assistance to an air carrier to provide 
        scheduled air service to and from the eligible place, without 
        being subject to the requirements of 41732(b).
          ``(2) To provide assistance to an air carrier to provide on-
        demand air taxi service to and from the eligible place.
          ``(3) 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.
          ``(4) 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.
          ``(5) To purchase aircraft, or a fractional share in 
        aircraft, to provide transportation to and from the eligible 
        place.
          ``(6) To pay for other transportation or related services 
        that the Secretary may permit.
  ``(d) Fractionally Owned Aircraft.--Notwithstanding any other 
provision of law, only those operating rules that relate to an aircraft 
that is fractionally owned apply when an aircraft described in 
subsection (c)(5) is used to provide transportation described in 
subsection (c)(5).
  ``(e) Applications.--
          ``(1) In general.--A unit of local government or State 
        seeking to participate in the program for an eligible place 
        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 
                required; and
                  ``(B) a description of how the compensation will be 
                used.
  ``(f) Participation Requirements.--
          ``(1) Eligible places.--An eligible place for which 
        compensation is received under the program in a fiscal year 
        shall not be eligible to receive in that fiscal year the 
        essential air service that it would otherwise be entitled to 
        under this subchapter.
          ``(2) Governmental entities.--A unit of local government or 
        State receiving compensation for an eligible place under the 
        program in a fiscal year shall not be required to pay the local 
        share described in 41737(a)(3) in such fiscal year.
  ``(g) Subsequent Participation.--A unit of local government 
participating in the program under this section in a fiscal year shall 
not be prohibited from participating in the basic essential air service 
program under this chapter in a subsequent fiscal year if such unit is 
otherwise eligible to participate in such program.
  ``(h) 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.''.
          (2) Conforming amendment.--The analysis for chapter 417 is 
        amended by inserting after the item relating to section 41744 
        the following:

``41745. Community and regional choice program.''.

SEC. 416. TYPE CERTIFICATES.

  (a) Agreements To Permit Use of Certificates by Other Persons.--
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. A person may manufacture a new 
aircraft, aircraft engine, propeller, or appliance based on a type 
certificate only if the person is the holder of the type certificate or 
has permission from the holder.''.
  (b) Certification of Products Manufactured in Foreign Nations.--
Section 44704 is further amended by adding at the end the following:
  ``(e) Certification of Products Manufactured in Foreign Nations.--In 
order to ensure safety, the Administrator shall spend at least the same 
amount of time and perform a no-less-thorough review in certifying, or 
validating the certification of, an aircraft, aircraft engine, 
propeller, or appliance manufactured in a foreign nation as the 
regulatory authorities of that nation employ when the authorities 
certify, or validate the certification of, an aircraft, aircraft 
engine, propeller, or appliance manufactured in the United States.''.

SEC. 417. 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 3 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 further 
        amended by adding at the end the following:
  ``(f) 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.--On receiving an application for a 
        type certificate under subsection (a) that is accompanied by a 
        certification of compliance by a design organization 
        certificated under this subsection, instead of conducting an 
        independent investigation under subsection (a), the 
        Administrator may issue the type certificate based on the 
        certification of compliance.
          ``(4) Public safety.--The Administrator shall include in a 
        design organization certificate issued under this subsection 
        terms required in the interest of safety.''.
  (c) Reinspection and Reexamination.--Section 44709(a) is amended by 
inserting ``design organization, production certificate holder,'' after 
``appliance,''.
  (d) Prohibitions.--Section 44711(a)(7) is amended by striking 
``agency'' and inserting ``agency, design organization certificate, ''.
  (e) Conforming Amendments.--
          (1) 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. 418. 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. 419. RUNWAY SAFETY STANDARDS.

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

``Sec. 44727. Runway safety areas

  ``An airport owner or operator 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) Conforming Amendment.--The analysis for chapter 447 is amended by 
adding at the end the following:

``44727. Runway safety areas.''.

SEC. 420. AVAILABILITY OF MAINTENANCE INFORMATION.

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

``Sec. 44728. Availability of maintenance information

  ``(a) In General.--The Administrator of the Federal Aviation 
Administration shall continue in effect the requirement of section 
21.50(b) of title 14, Code of Federal Regulations, that the holder of a 
design approval--
          ``(1) shall prepare and furnish at least one set of complete 
        instructions for continued airworthiness as prescribed in such 
        section to the owner of each type of aircraft, aircraft engine, 
        or propeller upon its delivery or upon the issuance of the 
        first standard airworthiness certificate for the affected 
        aircraft, whichever occurs later; and
          ``(2) thereafter shall make the instructions, and any changes 
        thereto, available to any other person required by parts 1 
        through 199 of title 14, Code of Federal Regulations, to comply 
        with any of the terms of the instructions.
  ``(b) Definitions.--In this section, the following definitions apply:
          ``(1) Make available.--The term `make available' means 
        providing at a cost not to exceed the cost of preparation and 
        distribution.
          ``(2) Design approval.--The term `design approval' means a 
        type certificate, supplemental type certificate, amended type 
        certificate, parts manufacturer approval, technical standard 
        order authorization, and any other action as determined by the 
        Administrator pursuant to subsection (c)(2).
          ``(3) Instructions for continued airworthiness.--The term 
        `instructions for continued airworthiness' means any 
        information (and any changes to such information) considered 
        essential to continued airworthiness that sets forth the 
        methods, techniques, and practices for performing maintenance 
        and alteration on civil aircraft, aircraft engines, propellers, 
        appliances or any part installed thereon. Such information may 
        include maintenance, repair, and overhaul manuals, standard 
        practice manuals, service bulletins, service letters, or 
        similar documents issued by a design approval holder.
  ``(c) Rulemaking.--The Administrator shall conduct a rulemaking 
proceeding for the following purposes:
          ``(1) To determine the meaning of the phrase `essential to 
        continued airworthiness' of the applicable aircraft, aircraft 
        engine, and propeller as that term is used in parts 23 through 
        35 of title 14, Code of Federal Regulations.
          ``(2) To determine if a design approval should include, in 
        addition to those approvals specified in subsection (b)(2), any 
        other activity in which persons are required to have technical 
        data approved by the Administrator.
          ``(3) To revise existing rules to reflect the definition of 
        design approval holder in subsections (b)(2) and (c)(2).
          ``(4) To determine if design approval holders that prepared 
        instructions for continued airworthiness or maintenance manuals 
        before January 29, 1981, should be required to make the manuals 
        available (including any changes thereto) to any person 
        required by parts 1 through 199 of title 14, Code of Federal 
        Regulations, to comply with any of the terms of those manuals.
          ``(5) To require design approval holders that--
                  ``(A) are operating an ongoing business concern;
                  ``(B) were required to produce maintenance manuals or 
                instructions for continued airworthiness under section 
                21.50(b) of title 14, Code of Federal Regulations; and
                  ``(C) have not done so,
        to prepare those documents and make them available as required 
        by this section not later than 1 year after date on which the 
        regulations are published.
          ``(6) To revise its rules to reflect the changes made by this 
        section.
  ``(d) Limitation on Statutory Construction.--Nothing is this section 
shall be construed as requiring the holder of a design approval to make 
available proprietary information unless it is deemed essential to 
continued airworthiness.''.
  (b) Conforming Amendment.--The analysis for chapter 447 is further 
amended by adding at the end the following:

``44728. Availability of maintenance information.''.

SEC. 421. 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, shall issue regulations to establish 
        procedures by which the Under Secretary, as part of a hearing 
        conducting under this section, may substitute an unclassified 
        summary of classified evidence upon the approval of the 
        administrative law judge.
          ``(2) Approval and disapproval of summaries.--Under the 
        procedures, an administrative law judge shall--
                  ``(A) approve a summary if the judge finds that it is 
                sufficient to enable the certificate holder to appeal 
                an order issued under subsection (a); or
                  ``(B) disapprove a summary if the judge finds that it 
                is not sufficient to enable the certificate holder to 
                appeal such an order.
          ``(3) Modifications.--If an administrative law judge 
        disapproves a summary under paragraph (2)(B), the judge shall 
        direct the Under Secretary to modify the summary and resubmit 
        the summary for approval.
          ``(4) Insufficient modifications.--If an administrative law 
        judge is unable to approve a modified summary, the order issued 
        under subsection (a) that is the subject of the hearing shall 
        be set aside unless the judge finds that such a result--
                  ``(A) would likely cause serious and irreparable harm 
                to the national security; or
                  ``(B) would likely cause death or serious bodily 
                injury to any person.
          ``(5) Special procedures.--If an administrative law judge 
        makes a finding under subparagraph (A) or (B) of paragraph (4), 
        the hearing shall proceed without an unclassified summary 
        provided to the certificate holder. In such a case, subject to 
        procedures established by regulation by the Under Secretary in 
        consultation with the Administrator, the administrative law 
        judge shall appoint a special attorney to assist the accused 
        by--
                  ``(A) reviewing in camera the classified evidence; 
                and
                  ``(B) challenging, through an in camera proceeding, 
                the veracity of the evidence contained in the 
                classified information.''.
  (b) Conforming Amendment.--The analysis for chapter 461 is amended by 
adding at the end the following:

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

SEC. 422. 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) contain the name of the air carrier that employs or 
        will employ the certificate holder on the date that the 
        certificate is issued;
          ``(4) is similar in size and appearance to certificates 
        issued to airmen;
          ``(5) contain the airplane group for which the certificate is 
        issued; and
          ``(6) be issued not later than 30 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.

SEC. 423. CIVIL PENALTY FOR CLOSURE OF AN AIRPORT WITHOUT PROVIDING 
                    SUFFICIENT NOTICE.

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

``Sec. 46319. Closure of an airport without providing sufficient notice

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

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

SEC. 424. 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. 425. AMENDMENT OF GENERAL FEE SCHEDULE PROVISION.

  The amendment made by section 119(d) of the Aviation and 
Transportation Security Act (115 Stat. 629) shall not be affected by 
the savings provisions contained in section 141 of that Act (115 Stat. 
643).

SEC. 426. 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) Minimum Training Hours.--In making adjustments to the maintenance 
curriculum requirements pursuant to this section, the current 
requirement of 1900 minimum training hours shall be maintained.
  (d) 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.
  (e) 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.
  (f) 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. 427. TASK FORCE ON FUTURE OF AIR TRANSPORTATION SYSTEM.

  (a) In General.--The President shall establish a task force to work 
with the Next Generation Air Transportation System Joint Program Office 
authorized under section 106(k)(3).
  (b) Membership.--The task force shall be composed of representatives, 
appointed by the President, from air carriers, general aviation, 
pilots, and air traffic controllers and the following government 
organizations:
          (1) The Federal Aviation Administration.
          (2) The National Aeronautics and Space Administration.
          (3) The Department of Defense.
          (4) The Department of Homeland Security.
          (5) The National Oceanic and Atmospheric Administration.
          (6) Other government organizations designated by the 
        President.
  (c) Function.--The function of the task force shall be to develop an 
integrated plan to transform the Nation's air traffic control system 
and air transportation system to meet its future needs.
  (d) Plan.--Not later than 1 year after the date of establishment of 
the task force, the task force shall transmit to the President and 
Congress a plan outlining the overall strategy, schedule, and resources 
needed to develop and deploy the Nation's next generation air traffic 
control system and air transportation system.

SEC. 428. 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; and
          (3) analyze samples of residue from aircraft ventilation 
        ducts and filters after air quality incidents to identify the 
        allergens, diseases, and other contaminants to which passengers 
        and crew were exposed.
  (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. 429. 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. 430. TASK FORCE ON ENHANCED TRANSFER OF APPLICATIONS OF TECHNOLOGY 
                    FOR MILITARY AIRCRAFT TO CIVILIAN AIRCRAFT.

  (a) In General.--The President shall establish a task force to look 
for better methods for ensuring that technology developed for military 
aircraft is more quickly and easily transferred to applications for 
improving and modernizing the fleet of civilian aircraft.
  (b) Membership.--The task force shall be composed of the Secretary of 
Transportation who shall be the chair of the task force and 
representatives, appointed by the President, from the following:
          (1) The Department of Transportation.
          (2) The Federal Aviation Administration.
          (3) The Department of Defense.
          (4) The National Aeronautics and Space Administration.
          (5) The aircraft manufacturing industry.
          (6) Such other organizations as the President may designate.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the task force shall report to Congress on the methods looked 
at by the task force for ensuring the transfer of applications 
described in subsection (a).

SEC. 431. 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, or the military 
action to free the people of Iraq that commenced in March 2003:
          (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 that were affected by Federal 
        Aviation Administration Notices to Airmen FDC 2/0199 and 3/1862 
        and section 352 of the Department of Transportation and Related 
        Agencies Appropriations Act, 2003 (P.L. 108-7, Division I).
          (4) General aviation entities affected by implementation of 
        section 44939 of title 49, United States Code.
          (5) Any other general aviation entity that is prevented from 
        doing business or operating by an action of the Federal 
        Government prohibiting access to airspace by that entity.
  (b) Documentation.--Reimbursement under this section shall be made in 
accordance with sworn financial statements or other appropriate data 
submitted by each general aviation entity demonstrating the costs 
incurred and revenue foregone to the satisfaction of the Secretary.
  (c) General Aviation Entity Defined.--In this section, the term 
``general aviation entity'' means any person (other than a scheduled 
air carrier or foreign air carrier, as such terms are defined in 
section 40102 of title 49, United States Code) that--
          (1) operates nonmilitary aircraft under part 91 of title 14, 
        Code of Federal Regulations, for the purpose of conducting its 
        primary business;
          (2) 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. 432. IMPASSE PROCEDURES FOR NATIONAL ASSOCIATION OF AIR TRAFFIC 
                    SPECIALISTS.

  (a) Failure of Current Negotiations.--If, within 30 days after the 
date of enactment of this Act, the Federal Aviation Administration and 
the exclusive bargaining representative of the National Association of 
Air Traffic Specialists have failed to achieve agreement through a 
mediation process of the Federal Mediation and Conciliation Service, 
the current labor negotiation shall be treated for purposes of this 
section to have failed.
  (b) Submission to Impasse Panel.--Not later than 30 days after the 
negotiation has failed under subsection (a), the parties to the 
negotiation shall submit unresolved issues to the Federal Service 
Impasses Panel described in section 7119(c) of title 5, United States 
Code, for final and binding resolution.
  (c) Assistance.--The Panel shall render assistance to the parties in 
resolving their dispute in accordance with section 7119 of title 5, 
United States Code, and parts 2470 and 2471 of title 5, Code of Federal 
Regulations.
  (d) Determination.--The Panel shall make a just and reasonable 
determination of the matters in dispute. In arriving at such 
determination, the Panel shall specify the basis for its findings, 
taking into consideration such relevant factors as are normally and 
customarily considered in the determination of wages or impasse Panel 
proceedings. The Panel shall also take into consideration the financial 
ability of the Administration to pay.
  (e) Effect of Panel Determination.--The determination of the Panel 
shall be final and binding upon the parties for the period prescribed 
by the Panel or a period otherwise agreed to by the parties.
  (f) Review.--The determination of the Panel shall be subject to 
review in the manner prescribed in chapter 71 of title 5, United States 
Code.

SEC. 433. 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. 434. PROHIBITION ON AIR TRAFFIC CONTROL PRIVATIZATION.

  (a) In General.--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 States Government.
  (b) Contract Tower Program.--Subsection (a) shall not apply to the 
contract tower program authorized by section 47124 of title 49, United 
States Code.

SEC. 435. 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. 436. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED AIR 
                    SERVICE.

  Section 145(c) of the Aviation and Transportation Security Act (49 
U.S.C. 40101 note; 115 stat. 645) is amended by striking ``more than'' 
and all that follows through ``after'' and inserting ``more than 36 
months after''.

SEC. 437. INTERNATIONAL AIR SHOW.

  (a) Study.--The Secretary of Transportation shall study the 
feasibility of the United States hosting a world-class international 
air show.
  (b) Report.--Not later than 9 months after the date of enactment of 
this Act, the Secretary shall transmit to Congress a report on the 
results of the study conducted under subsection (a) together with 
recommendations concerning potential locations at which the air show 
could be held.

SEC. 438. DEFINITION OF AIR TRAFFIC CONTROLLER.

  (a) Civil Service Retirement System.--Section 8331 of title 5, United 
States Code, is amended--
          (1) by striking ``and'' at the end of paragraph (27);
          (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
          (3) 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 holding a 
                supervisory, managerial, executive, technical, 
                semiprofessional, or professional position for which 
                experience as a controller (within the meaning of 
                section 2109(1)) is a prerequisite.''.
  (b) Federal Employees' Retirement System.--Section 8401 of title 5, 
United States Code, is amended--
          (1) by striking ``and'' at the end of paragraph (33);
          (2) by striking the period at the end of paragraph (34) and 
        inserting ``; and''; and
          (3) 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 holding a 
                supervisory, managerial, executive, technical, 
                semiprofessional, or professional position for which 
                experience as a controller (within the meaning of 
                section 2109(1)) is a prerequisite.''.
  (c) Mandatory Separation Treatment Not Affected.--
          (1) 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).''.
          (2) 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).''.
  (d) Effective Date.--This section and the amendments made by this 
section--
          (1) shall take effect on the 60th day after the date of 
        enactment of this Act; and
          (2) shall apply with respect to--
                  (A) any annuity entitlement to which is based on an 
                individual's separation from service occurring on or 
                after that 60th day; and
                  (B) any service performed by any such individual 
                before, on, or after that 60th day, subject to 
                subsection (e).
  (e) Deposit Required for Certain Prior Service To Be Creditable as 
Controller Service.--
          (1) 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 
        (b) shall, with respect to any service described in paragraph 
        (2), 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--
                  (A) the deductions from pay which would have been 
                required for such service if the amendments made by 
                this section had been in effect when such service was 
                performed, exceeds
                  (B) the unrefunded deductions or deposits actually 
                made under subchapter II of chapter 84 of such title 5 
                with respect to such service.
        The amount under the preceding sentence shall include interest, 
        computed under paragraphs (2) and (3) of section 8334(e) of 
        such title 5.
          (2) Prior service described.--This subsection applies with 
        respect to any service performed by an individual, before the 
        60th day following the date of enactment of this Act, as an 
        employee described in section 8401(35)(B) of such title 5 (as 
        set forth in subsection (b)).

SEC. 439. 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, not 
later than 60 days after the date of establishing the ADIZ, to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing an explanation of the 
need for the ADIZ. The Administrator 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) 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. 440. 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. 441. REIMBURSEMENT OF AIR CARRIERS FOR CERTAIN SCREENING AND 
                    RELATED ACTIVITIES.

  The Secretary of Transportation, 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 the following:
          (1) All screening and related activities that the air 
        carriers or airports are still performing or continuing to be 
        responsible for, including--
                  (A) the screening of catering supplies;
                  (B) checking documents at security checkpoints;
                  (C) screening of passengers; and
                  (D) screening of persons with access to aircraft.
          (2) The provision of space and facilities used to perform 
        screening functions if such space and facilities have been 
        previously used, or were intended to be used, for revenue-
        producing purposes.

SEC. 442. GENERAL AVIATION FLIGHTS AT RONALD REAGAN WASHINGTON NATIONAL 
                    AIRPORT.

  It is the sense of Congress that Ronald Reagan Washington National 
Airport should be open to general aviation flights as soon as possible.

                      TITLE V--AIRPORT DEVELOPMENT

SEC. 501. 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. 502. 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. 503. SECURITY COSTS AT SMALL AIRPORTS.

  (a) Security Costs.--Section 47102(3)(J) is amended to read as 
follows:
                  ``(J) in the case of a nonhub airport or an airport 
                that is not a primary airport in fiscal year 2004, 
                direct costs associated with new, additional, or 
                revised security requirements imposed on airport 
                operators by law, regulation, or order on or after 
                September 11, 2001, if the Government's share is paid 
                only from amounts apportioned to a sponsor under 
                section 47114(c) or 47114(d)(3)(A).''.
  (b) Conforming Amendment.--Section 47110(b)(2) is amended--
          (1) in subparagraph (D) by striking ``, 47102(3)(K), or 
        47102(3)(L)''; and
          (2) by aligning the margin of subparagraph (D) with the 
        margin of subparagraph (B).

SEC. 504. WITHHOLDING OF PROGRAM APPLICATION APPROVAL.

  Section 47106(d) is amended--
          (1) in paragraph (1) by striking ``section 47114(c) and (e) 
        of this title'' and inserting ``subsections (c), (d), and (e) 
        of section 47114''; and
          (2) by adding at the end the following:
  ``(4) If the Secretary withholds a grant to an airport from the 
discretionary fund under section 47115 or from the small airport fund 
under section 47116 on the grounds that the sponsor has violated an 
assurance or requirement of this subchapter, the Secretary shall follow 
the procedures of this subsection.''.

SEC. 505. RUNWAY SAFETY AREAS.

  Section 47106 is amended by adding at the end the following:
  ``(h) Runway Safety Areas.--The Secretary may approve an application 
under this chapter for a project grant to construct, reconstruct, 
repair, or improve a runway only if the Secretary receives written 
assurances, satisfactory to the Secretary, that the sponsor will 
undertake, to the maximum extent practical, improvement of the runway's 
safety area to meet the standards of the Federal Aviation 
Administration.''.

SEC. 506. DISPOSITION OF LAND ACQUIRED FOR NOISE COMPATIBILITY 
                    PURPOSES.

  Section 47107(c) is amended by adding at the end the following:
  ``(4) Notwithstanding paragraph (2)(A)(iii), an airport owner or 
operator may retain all or any portion of the proceeds from a land 
disposition described in that paragraph if the Secretary finds that the 
use of the land will be compatible with airport purposes and the 
proceeds retained will be used for airport development or to carry out 
a noise compatibility program under section 47504(c).''.

SEC. 507. GRANT ASSURANCES.

  (a) Hangar Construction.--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 (of not less than 50 years) that 
        is subject to such terms and conditions on the hangar as the 
        airport owner or operator may impose.''.
  (b) Statute of Limitations..--Section 47107(l)(5)(A) is amended by 
inserting ``or any other governmental entity'' after ``sponsor''.
  (c) 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. 508. ALLOWABLE PROJECT COSTS.

  (a) Construction or Modification of Public Parking Facilities for 
Security Purposes.--Section 47110 is amended--
          (1) in subsection (f) by striking ``subsection (d)'' and 
        inserting ``subsections (d) and (h)''; and
          (2) by adding at the end the following:
  ``(h) Construction or Modification of Public Parking Facilities for 
Security Purposes.--Notwithstanding subsection (f)(1), a cost of 
constructing or modifying a public parking facility for passenger 
automobiles to comply with a regulation or directive of the Department 
of Homeland Security shall be treated as an allowable airport 
development project cost.''.
  (b) Debt Financing.--Section 47110 is further amended by adding at 
the end the following:
  ``(i) Debt Financing.--In the case of an airport that is not a medium 
hub airport or large hub airport, the Secretary may determine that 
allowable airport development project costs include payments of 
interest, commercial bond insurance, and other credit enhancement costs 
associated with a bond issue to finance the project.''.
  (c) Clarification of Allowable 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''.
  (d) Technical Amendments.--Section 47110(e) is amended by aligning 
the margin of paragraph (6) with the margin of paragraph (5).

SEC. 509. APPORTIONMENTS TO PRIMARY AIRPORTS.

  (a) Formula Changes.--Section 47114(c)(1)(A) is amended by striking 
clauses (iv) and (v) and by inserting the following:
                          ``(iv) $.65 for each of the next 500,000 
                        passenger boardings at the airport during the 
                        prior calendar year;
                          ``(v) $.50 cents for each of the next 
                        2,500,000 passenger boardings at the airport 
                        during the prior calendar year; and
                          ``(vi) $.45 cents for each additional 
                        passenger boarding at the airport during the 
                        prior calendar year.''.
  (b) Special Rule for Fiscal Years 2004 and 2005.--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;
                          ``(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.''.

SEC. 510. 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. 511. 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.
          ``(2) For all projects.--In selecting a project for a grant 
        described in paragraph (1), the Secretary shall consider 
        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. 512. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

  (a) In General.--Section 47117(c) is amended to read as follows:
  ``(c) Use of Sponsor's Apportioned Amounts at Public Use Airports.--
          ``(1) Of sponsor.--An amount apportioned to a sponsor of an 
        airport under section 47114(c) or 47114(d)(3)(A) is available 
        for grants for any public-use airport of the sponsor included 
        in the national plan of integrated airport systems.
          ``(2) In same state or area.--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 section 47114(c) or 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.''.
  (b) Project Grant Agreements.--Section 47108(a) is amended by 
inserting ``or 47114(d)(3)(A)'' after ``under section 47114(c)''.
  (c) Allowable Project Costs.--Section 47110 is further 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:
  ``(j) 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.''.
  (d) Terminal Development Costs.--Section 47119(b) is amended--
          (1) by striking ``or'' at the end of paragraph (3);
          (2) by striking the period at the end of paragraph (4) and 
        inserting ``; or''; and
          (3) by adding at the end the following:
          ``(5) to a sponsor of a nonprimary airport, any part of 
        amounts apportioned to the sponsor for the fiscal year under 
        section 47114(d)(3)(A) for project costs allowable under 
        section 47110(d).''.

SEC. 513. USE OF APPORTIONED AMOUNTS.

  (a) Special Apportionment Categories.--Section 47117(e)(1)(A) is 
amended--
          (1) by striking ``of this title'' the first place it appears 
        and inserting a comma; and
          (2) by striking ``of this title'' the second place it appears 
        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 47140, and for airport development described in section 
        47102(3)(F) or 47102(3)(K) to comply with the Clean Air Act (42 
        U.S.C. 7401 et seq.)''.
  (b) Elimination of Super Reliever Set-Aside.--Section 47117(e)(1)(C) 
is repealed.
  (c) Recovered Funds.--Section 47117 is further amended by adding at 
the end the following:
  ``(h) Treatment of Canceled or Reduced Grant Obligations.--For the 
purpose of determining compliance with a limitation, enacted in an 
appropriations Act, on the amount of grant obligations of funds made 
available by section 48103 that may be incurred in a fiscal year, an 
amount that is recovered by canceling or reducing a grant obligation of 
funds made available by section 48103 shall be treated as a negative 
obligation that is to be netted against the obligation limitation as 
enacted and thus may permit the obligation limitation to be exceeded by 
an equal amount.''.

SEC. 514. MILITARY AIRPORT PROGRAM.

  Subsections (e) and (f) of section 47118 are each amended by striking 
``$7,000,000'' and inserting ``$10,000,000''.

SEC. 515. 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 3 years 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).''.

SEC. 516. CONTRACT TOWERS.

  Section 47124(b) is amended--
          (1) in paragraph (1) by striking ``on December 30, 1987,'' 
        and inserting ``on date of enactment of the Flight 100--Century 
        of Aviation Reauthorization Act'';
          (2) in the heading for paragraph (3) by striking ``pilot'';
          (3) in paragraph (4)(C) by striking ``$1,100,000'' and 
        inserting ``$1,500,000''; and
          (4) by striking ``pilot'' each place it appears.

SEC. 517. 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. 518. 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) by the Secretary at any nonprimary 
                        airport 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) Federal Share.--Section 47109(a) is amended--
          (1) by inserting ``and'' at the end of paragraph (3);
          (2) by striking paragraph (4); and
          (3) by redesignating paragraph (5) as paragraph (4).

SEC. 519. INNOVATIVE FINANCING TECHNIQUES.

  (a) Eligible Projects.--Section 47135(a) is amended--
          (1) in the first sentence by inserting after ``approve'' the 
        following: ``after the date of enactment of the Flight 100--
        Century of Aviation Reauthorization Act'';
          (2) in the first sentence by striking ``20'' and inserting 
        ``10''; and
          (3) by striking the second sentence and inserting the 
        following: ``Such projects shall be located at airports that 
        are not medium or large hub airports.''.
  (b) Innovative Financing Techniques.--Section 47135(c)(2) is 
amended--
          (1) by striking subparagraphs (A) and (B); and
          (2) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (A) and (B), respectively.
  (c) Savings Clause.--The amendments made by this section shall not 
affect applications approved under section 47135 of title 49, United 
States Code, before the date of enactment of this Act.

SEC. 520. 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. 521. LOW-EMISSION AIRPORT VEHICLES AND INFRASTRUCTURE.

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

``Sec. 47138. Emission credits for air quality projects

  ``(a) In General.--The Secretary of Transportation and the 
Administrator of the Environmental Protection Agency shall jointly 
agree on how to assure that airport sponsors receive appropriate 
emission credits for carrying out projects described in sections 
40117(a)(3)(G), 47102(3)(K), and 47102(3)(L). Such agreement must 
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.--
          ``(1) In general.--As a condition for making a grant for a 
        project described in section 47102(3)(K), 47102(3)(L), or 47139 
        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), 47102(3)(K), 47102(3)(L), or 47139, 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.
          ``(2) Agreement on previously approved projects.--The 
        Secretary and the Administrator of the Environmental Protection 
        Agency shall jointly agree on how to provide emission credits 
        to airport projects previously approved under section 47136 
        under terms consistent with the conditions enumerated in this 
        section.''.
  (b) Airport Ground Support Equipment Emissions Retrofit Pilot 
Program.--Subchapter I of chapter 471 is further amended by adding at 
the end the following:

``Sec. 47139. 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.''.
  (c) Addition to Airport Development.--Section 47102(3) is further 
amended by striking subparagraphs (K) and (L) and inserting 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 
                47138.
                  ``(L) converting vehicles and ground support 
                equipment owned by a commercial service airport to low-
                emission technology or acquiring for use at a 
                commercial service airport vehicles and ground support 
                equipment that include low-emission technology 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 47138.''.
  (d) Allowable Project Cost.--Section 47110(b) is further 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) in the case of a project for acquiring for use at a 
        commercial service airport vehicles and ground support 
        equipment owned by an airport that is not described in section 
        47102(3) and that include low-emission technology, if the total 
        costs allowed for the project are not more than the incremental 
        cost of equipping such vehicles or equipment with low-emission 
        technology, as determined by the Secretary.''.
  (e) Low-Emission Technology Equipment.--Section 47102 (as amended by 
section 501 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.''.
  (f) Conforming Amendments.--The analysis of subchapter I of chapter 
471 is amended by adding at the end the following:

``47138. Emission credits for air quality projects.
``47139. Airport ground support equipment emissions retrofit pilot 
program.''.

SEC. 522. 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. 47140. 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 land use compatibility plans or 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 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 past 10 years; and
          ``(2) the land use plan meets the requirements of this 
        section and any project resulting from the plan meets such 
        requirements.
  ``(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) provide written assurance to the Secretary that it will 
        work with the affected airport to identify and adopt such 
        measures; 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 awarded under this section for 
a land use plan or a project resulting from such a 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 projects 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 received concurrence by the airport 
                operator prior to adoption by 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 the State or unit 
of local government to which a grant may be awarded 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 land use 
compatibility project only if the Secretary is satisfied that the 
project is consistent with the guidelines established by the Secretary 
under this section, that the State or unit of local government has 
provided the assurances required by this section, that the Secretary 
has received evidence that 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 Federal 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:

``47140. Compatible land use planning and projects by State and local 
governments.''.

SEC. 523. PROHIBITION ON REQUIRING AIRPORTS TO PROVIDE RENT-FREE SPACE 
                    FOR FEDERAL AVIATION ADMINISTRATION.

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

``Sec. 47141. Prohibition on rent-free space requirements for Federal 
                    Aviation Administration

  ``(a) In General.--The Secretary of Transportation may not require an 
airport sponsor to provide to the Federal Aviation Administration, 
without compensation, space in a building owned by the sponsor and 
costs associated with such space for building construction, 
maintenance, utilities, and other expenses.
  ``(b) Negotiated Agreements.--Subsection (a) does not prohibit--
          ``(1) the negotiation of agreements between the Secretary and 
        an airport sponsor to provide building construction, 
        maintenance, utilities and expenses, or space in airport 
        sponsor-owned buildings to the Federal Aviation Administration 
        without cost or at below-market rates; or
          ``(2) the Secretary of Transportation from requiring airport 
        sponsors to provide land without cost to the Federal Aviation 
        Administration for air traffic control facilities.''.
  (b) Conforming Amendment.--The analysis for subchapter I of chapter 
471 is further amended by adding at the end the following:

``47141. Prohibition on rent-free space requirements for Federal 
Aviation Administration.''.

SEC. 524. 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 
Secretary of Transportation shall enter into a memorandum of 
understanding with the Secretaries of Defense, Interior, and Homeland 
Security 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 the Secretary of Interior for Midway Island Airport.--
          (1) In general.--Chapter 481 is amended by adding at the end 
        the following:

``Sec. 48114. Funding to the Secretary of Interior for Midway Island 
                    Airport

  ``The following amounts shall be available (and shall remain 
available until expended) to the Secretary of Interior, out of the 
Airport and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9502), for airport capital 
projects at the Midway Island Airport:
          ``(1) $750,000 for fiscal year 2004.
          ``(2) $2,500,000 for fiscal year 2005.
          ``(3) $1,000,000 for fiscal year 2006.
          ``(4) $1,000,000 for fiscal year 2007.''.
          (2) Conforming amendment.--The analysis for chapter 481 is 
        amended by adding at the end the following:

``48114. Funding to the Secretary of Interior for Midway Island 
Airport.''.

                       Purpose of the Legislation

    The reported bill reauthorizes programs of the Federal 
Aviation Administration and makes a number of changes in 
aviation laws in order to increase the safety, efficiency, and 
capacity of the aviation system.

                Background and Need for the Legislation

    The Airport Improvement Program (AIP) is a contract 
authority program. If it is not reauthorized by September 30th 
of this year, airports will not be able to receive any grants 
from the Aviation Trust Fund after that date. This sets AIP 
apart from the other programs funded from the Trust Fund. While 
the other programs should be reauthorized as well, they can 
receive money as long as an appropriations act is passed.
    Programs providing federal aid to airports began in 1946 
and have been modified several times. The Aviation Trust Fund 
was created in 1970. The current AIP program began in 1982.
    The Airport Improvement Program (AIP) is funded entirely by 
the Airport & Airway Trust Fund. The Trust Fund, in turn, is 
supported entirely by the following taxes on aviation users:
           7.5% passenger ticket tax;
           $3 passenger flight segment fee (does not 
        apply to passengers departing from a rural airport 
        which are defined as those that have less than 100,000 
        passengers per year);
           6.25% freight waybill tax;
           $13.40 international departure and arrival 
        taxes;
           7.5% frequent flyer award tax; and
           Aviation fuel taxes as follows:
                   4.3 cents on commercial aviation;
                   19.3 cents on general aviation 
                gasoline; and
                   21.8 cents on general aviation jet 
                fuel.
    According to the President's budget, these taxes raised 
about $9 billion in 2002 in the following amounts:
           $4.8 billion from the passenger ticket 
        taxes;
           $1.5 billion from the passenger flight 
        segment fee;
           $474 million from the freight waybill tax;
           $789 million from the various aviation fuel 
        taxes;
           $1.3 billion from the international 
        departure and arrival taxes; and
           $148 million from frequent flyer award tax.
    The Aviation Trust Fund continues to earn interest on its 
cash balance, which was $12.6 billion at the beginning of this 
fiscal year. Interest revenue in 2002 was about $860 million. 
This means that Trust Fund tax and interest revenue together 
with various offsetting collections totaled about $10.1 billion 
last year. The President's budget projects that Trust Fund 
revenue will increase to $10.2 billion in 2003 and to $11.1 
billion in 2004.
    In addition to the AIP, the Trust Fund also fully funds the 
Federal Aviation Administration's air traffic control 
facilities & equipment (F&E) modernization program and its 
aviation research program. The reported bill does not include 
any provisions involving aviation research. The Fund also 
partially pays for the salaries, expenses, and operations of 
the FAA. In 2003, these programs should receive the following 
amounts from the Trust Fund:
           Airport Improvement Program--$3.4 billion;
           Facilities and Equipment--$3 billion;
           Research and Development--$124 million; and
           FAA Operations--$3.9 billion from the Trust 
        Fund (the remainder of the $7.2 billion FAA operating 
        budget comes from the General Fund).
    AIR 21 procedural protections. When it was created in 1970, 
the Trust Fund was intended as a fund to pay for improvements 
to the aviation infrastructure. For many years, the 
Transportation and Infrastructure Committee and the aviation 
community had sought to ensure that the money aviation users 
paid into the Trust Fund would actually be used for aviation 
infrastructure improvements. However, this was not usually done 
because Trust Fund spending was counted as part of the general 
budget so every dollar spent from the Trust Fund increased the 
deficit or reduced the surplus.
    As a result of this chronic underfunding, the uncommitted 
balance in the Trust Fund continued to grow, reaching a peak of 
$7.7 billion in 1991. This meant that there were billions of 
dollars in the Trust Fund unused even though there were 
significant needs to expand airport capacity and modernize the 
air traffic control system. This surplus was reduced by 
spending more Trust Fund money on FAA Operations despite 
formulas in the law that were intended to give priority to the 
capital programs.
    In the 1980s and 1990s, legislation was introduced to take 
the aviation trust fund off budget. But none was enacted.
    In 1999, another effort was launched to unlock the Trust 
Fund. This culminated in the enactment on April 5, 2000 of the 
Wendell H. Ford Aviation Investment and Reform Act for the 21st 
Century (Public Law 106-181), commonly known as AIR 21. While 
the Trust Fund remained on budget, AIR 21, through a series of 
procedural points of order, ensured that every dollar aviation 
users pay into the Trust Fund is actually spent on aviation 
programs.
    Section 106 of AIR 21 (114 Stat. 72) requires (1) that the 
total amount available for spending from the Trust Fund each 
year is equal to the Trust Fund receipts plus interest as 
estimated by the President's budget for that year and (2) that 
the total spending on the two major capital programs (AIP and 
F&E) must be at authorized levels. If an appropriations bill is 
brought to the House or Senate that does not meet these two 
requirements, any Member can make a point of order against it 
and the bill may not be considered in that form.
    As a result of AIR 21, spending on aviation infrastructure 
has increased dramatically. AIP increased from $1.9 billion in 
2000 to $3.2 billion in 2001 and F&E increased from $2 billion 
to $2.7 billion.
    The Trust Fund share of FAA's operating account varies from 
year to year depending on Trust Fund receipts and the amount 
spent on the capital programs. The Trust Fund share is 
calculated by subtracting from total Trust Fund receipts and 
interest, the amount spent on the capital programs (AIP, F&E, 
and Research).
    The uncommitted balance in the Trust Fund is now $4.8 
billion.
    An important feature of the reported bill is that the 
procedural protections adopted in AIR 21 are continued. Section 
104(d) extends these procedural protections for another 4 
years.
    AIP formula. There are approximately 19,000 airports in the 
United States. Of those, 5,314 are open to the public. The 
FAA's National Plan of Integrated Airport System (NPIAS) 
identifies 3,489 airports that are significant to the national 
aviation system and are eligible for AIP grants.
    The AIP grants are distributed by formulas that are set 
forth in the law. In a recent report, the General Accounting 
Office found that FAA was doing a good job of awarding the 
grants in accordance with the statutory formulas (GAO-02-283, 
April 2002). These formulas are described below.
    Passenger entitlements. The law divides AIP money into two 
broad categories: entitlement funds and discretionary funds. 
Entitlement funds are further divided into four sub-categories. 
They are--
           Primary airport entitlements;
           Cargo airport entitlements;
           State and general aviation entitlements; and
           Alaskan airport entitlements.
    If a public airport has scheduled passenger air service 
with at least 10,000 passenger boardings per year, it is 
considered a primary airport. These airports are entitled to 
receive AIP money each year in accordance with the following 
formula:
           $7.80 for each of the first 50,000 
        passengers boarded;
           $5.20 for each of the next 50,000 passengers 
        boarded;
           $2.60 for each of the next 400,000 
        passengers boarded;
           65 cents for each of the next 500,000 
        passengers boarded; and
           50 cents for each additional passenger 
        boarded.
    Regardless of the number of passengers boarded, the minimum 
entitlement is $1,000,000 per year and no primary airport is 
entitled to more than $26 million per year.
    Large and medium hub airports that choose to collect a $3 
passenger facility charge (PFC) receive only half their 
entitlement. Those that charge a PFC of either $4 or $4.50 
receive only 25% of their entitlement.
    To receive the money, an airport must have a project, such 
as a runway, terminal, or noise abatement project that is 
eligible for AIP funding under the law. An airport can retain 
the right to receive its entitlement money for 3 years (4 years 
in the case of smaller airports that are classified as non-hub 
airports). Entitlement money deferred to a later year is 
referred to as carryover entitlement.
    The Administration proposed reducing this entitlement in 
half for the medium and large hub airports (currently the 66 
largest airports in the U.S.) to provide more money for 
discretionary grants.
    The Committee supports the goal of this initiative but 
believes a 50% cut is too severe. Instead, the reported bill 
adjusts the formula described above by reducing by 5 cents the 
entitlement for each passenger above 3.5 million. This will 
affect the top 50 airports. The money thus saved would go into 
the discretionary fund to be spent on high priority projects, 
many of which are likely to be at some of these same 50 
airports.
    Additionally, in recognition of the unusual situation 
following the September 11th tragedy, the reported bill allows 
airports that no longer qualify as primary airports to continue 
to receive their passenger entitlement for 2 years.
    There are 437 primary airports. This year, FAA estimates 
that the passenger entitlement will total about $962 million. 
Under the bill, as reported by the Committee, it will total 
about $932 million.
    Cargo entitlement. Cargo service airports include airports 
that: (1) are served by cargo-only (freighter) aircraft with a 
total annual landed weight of more than 100 million pounds; and 
(2) other airports that DOT finds will be served primarily by 
freighter aircraft. These airports are entitled to share money 
that equals 3% of total AIP funds. A cargo service airport 
shares in this money in proportion to which the total landed 
weight of cargo-only aircraft landing at an airport is to the 
total landed weight of such aircraft at all cargo service 
airports. Landed weight means the weight of aircraft 
transporting only cargo under regulations prescribed by the 
Secretary of Transportation.
    There are 111 airports that qualify for the cargo 
entitlement and they will receive $97 million this year in 
proportion to their cargo aircrafts' landed weight.
    The reported bill increases the cargo entitlement to 3.5% 
of total AIP funds in recognition of the important role these 
airports play in the commerce of this country. As a result, the 
cargo entitlement will increase to $119 million.
    State entitlement/general aviation. General aviation 
airports share 20% of total AIP funds. These are airports that 
are used by private planes or that have only limited commercial 
airline service (less than 10,000 passengers per year).
    Each general aviation airport is entitled to receive the 
amount of money needed for their planned development as listed 
in the FAA's national plan known as the National Plan of 
Integrated Airport Systems (NPIAS). The amount of this 
entitlement is limited to $150,000 per year per airport.
    The remaining money is allocated to the States by a formula 
that takes into account the population and area of each State. 
General aviation airports that are seeking AIP money from this 
allocation usually apply directly to the FAA. Some States 
require their airports to channel their AIP applications 
through the State aviation agency. The FAA then decides which 
airports will get the money. Nine States (Illinois, Michigan, 
Missouri, New Jersey, North Carolina, Pennsylvania, Tennessee, 
Texas, and Wisconsin) participate in the State Block Grant 
program. FAA is authorized to select another State for this 
program. Under this program, the FAA gives the State aviation 
agency more responsibility to manage its AIP allocation and the 
State, not the FAA, decides which general aviation airports 
will receive grants. States that participate in the State Block 
Grant program do not receive more money but they do get more 
control over how it is distributed to airports in their State.
    This entitlement is not changed by the reported bill and is 
estimated to total about $680 million.
    Alaska entitlement. By law, Alaskan airports are entitled 
to receive at least the same amount of money that they received 
in 1980, i.e. $10.5 million. If total AIP funding is at least 
$3.2 billion in a year, that amount is doubled.
    Discretionary. The FAA at its own discretion can spend any 
money left over after the above entitlements are funded. 
However, this discretionary fund is subject to three set-
asides.
    Noise set-aside. The law sets aside 34% of this 
discretionary fund for noise projects. These could include such 
things as buying property for a noise buffer or soundproofing 
buildings. The noise set-aside is expected to receive $261 
million this year and $318 million under the reported bill.
    Military airports. Under the military airport program 
(MAP), FAA selects 15 current or former military airports 
(including at least one general aviation airport) to share in a 
set-aside, which is equal to 4% of the discretionary fund. The 
purpose of this program is to increase overall system capacity 
by promoting joint civilian-military use of military airports 
or by converting former military airports to civilian use.
    Airports currently in the military airport program are 
Plattsburgh International, NY; Guam International, Guam; Tipton 
Airport, MD; Eglin AFB, Valparaiso, FL; Gray AAF, Killeen, TX; 
March ARB, CA; Mather Field, Sacramento, CA; Cecil Field, 
Jacksonville, FL; K.I. Sawyer AFB, Gwinn, MI; and Mid America 
Airport, St. Louis, MO. There are 5 openings, including one for 
a general aviation airport. These airports will compete for 
$30.7 million this year and $37.4 million under the reported 
bill.
    Reliever Airports. For many years, the AIP program included 
a set-aside for reliever airports. These were small airports 
that the FAA determined would help relieve congestion at nearby 
larger airports. However, GAO issued a study that found these 
airports were not effective in relieving congestion. As a 
result, the Federal Aviation Reauthorization Act of 1996 (P.L. 
104-264) eliminated this set-aside.
    In AIR 21, a more limited version of this set-aside was 
recreated. In order to qualify, an airport must meet the 
following criteria:
           have more than 75,000 annual operations;
           have a 5,000 foot runway;
           have a precision instrument landing 
        procedure;
           have a minimum number of aircraft based at 
        the airport; and
           be designated by FAA as a reliever airport 
        to an airport with at least 20,000 hours of annual 
        delays.
    Airports that meet these criteria are eligible for two-
thirds of 1% of the discretionary funds. This year that will be 
$5.1 million to be shared among 37 airports that qualify.
    The reported bill does not continue this set aside since 
there is no evidence that these airports rely on this very 
small set-aside to accomplish their function as relievers.
    Pure discretionary. After the entitlements and set-asides 
are funded, the remaining money can be spent as the FAA sees 
fit. This is often referred to as pure discretionary AIP money. 
Even here, however, there are restrictions. The law requires 
that 75% of this discretionary money be spent on airport 
projects that will enhance capacity, safety, or security, or 
that will reduce noise. FAA projects that there will be $470 
million in the discretionary fund this year and $581 million 
under the reported bill.
    Passenger Facility Charge. In 1990, the Committee became 
concerned that AIP alone would not be able to meet the future 
infrastructure needs of U.S. airports. Consequently, the 1990 
AIP reauthorization law permitted an airport to assess a fee on 
passengers. Thisis known as the passenger facility charge 
(PFC). PFCs are collected by the airlines and paid directly to the 
airport without going through the Federal treasury. They are intended 
to supplement AIP by providing more money for runways, taxiways, 
terminals, gates, and other airport improvements.
    The 1990 law limited the PFC to $3. AIR 21 raised it to 
$4.50.
    No airport may charge a PFC of more than $4.50 per 
passenger and no passenger has to pay more than $18 in PFCs per 
round-trip regardless of the number of airports through which 
the passenger connects. No airport can charge a PFC until FAA 
approves it.
    FAA has approved PFCs at 333 airports and 309 were actually 
collecting money at the end of last year. The total approved 
collections are over $37 billion. Last year, $2 billion was 
collected and about the same amount is expected to be collected 
this year.
    If a medium or large hub airport charges a $3 PFC, it must 
forego up to 50% of its AIP passenger entitlement. If it 
charges more than $3, it must forego 75% of its AIP passenger 
entitlement. The foregone entitlements go into a special small 
airport fund to be distributed as follows:
           50% to non-hub airports;
           25% to general aviation airports;
           12.5% to small hub airports; and
           12.5% to the discretionary fund.
    This year non-hubs will receive $220 million, general 
aviation airports will receive $110 million, and small hubs 
will receive $55 million from the small airport fund. Those 
amounts will drop to $204 million, $102 million, and $51 
million respectively because of the cut in the large airport 
entitlement.
    The Committee continues to support the PFC program. The 
reported bill includes provisions to streamline the collection 
of PFCs and to ensure that those funds are protected should an 
airline become insolvent.
    Air service to underserved airports. The Committee 
continues to be concerned about air service to the 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 Committee believes 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 
Committee encourages 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.
    Essential air service (EAS) program. The EAS program was 
created in 1978 to ensure that no communities lost air service 
as a result of the Airline Deregulation Act. It provides 
subsidies to commuter airlines to provide service to small 
communities where there are not enough passengers to operate 
profitably. The cost of this program has increased from 
$22,900,000 in 1996 to an estimate of more than $110,000,000 in 
2003. GAO recently issued a report recommending changes to the 
program to bring down its costs. One suggestion was to provide 
grants to the community, rather than to the airline, to provide 
the service. The President's budget suggests that there be a 
local matching share of the subsidy cost to be paid by any 
community that continues to seek the Federally subsidized air 
service. The reported bill adopts part of both suggestions. It 
phases in a local share of up to 10% for EAS communities that 
are close to larger airports. It also gives all communities 
that rely on the EAS program the option of developing their own 
transportation links and receiving a grant from the Federal 
government to help pay for it.
    Security. In an October 2002 report, the GAO found that AIP 
spending on security had increased from 2% of the program's 
total funding to 17%. With security no longer the 
responsibility of FAA, the Committee believes that more of the 
cost of security projects at airports should be borne by the 
new Homeland Security Department rather than by the FAA through 
the AIP fund. Yet testimony at the Subcommittee's hearings 
revealed that some airports continue to want the option of 
spending some of their AIP grants on security. Accordingly, the 
reported bill continues to allow airports to use AIP 
entitlement funds to pay for terminal modifications to 
accommodate explosive detection systems. However, discretionary 
funds could no longer be used for this purpose.
    Streamlining. GAO recently issued a report describing the 
challenges to building new runways. Last year, the House passed 
H.R. 4481 to streamline the process for building new runways at 
congested airports. However, the Senate did not act, so the 
reported bill once again includes this streamlining provision.
    Over the last 20 years, air travel in the United States has 
grown faster than any other mode of transportation. 
Unfortunately, airport runway capacity has not kept pace with 
the growth. Not long ago, FAA released the Airport Capacity 
Benchmarks Report 2001, which indicated that many of our 
Nation's busiest airports were at or above capacity for at 
least some portion of the day. While the events of September 
11th, the economic downturn and SARS, have negatively impacted 
the aviation industry, the Committee expects that the industry 
will turn around. Therefore, this is the time to address 
aviation capacity and delay issues so that gridlock will not 
return to our busiest airports.
    In the past, insufficient airport runway capacity led to 
chronic and worsening congestion. In the summer of 2001, one 
out of every four commercial flights experienced a significant 
delay or a cancellation. Yet, even with the apparent national 
need for additional runway capacity, airports have had 
difficulty building new runways. In thelast decade, only six of 
our Nation's largest airports managed to complete new runway projects.
    The current runway planning and approval process routinely 
takes ten years and can take much longer. To build a runway, an 
airport must coordinate with dozens of Federal, state, and 
local agencies, including the Federal Aviation Administration, 
the Environmental Protection Agency, the Fish and Wildlife 
Service, the Park Service, the Army Corps of Engineers, the 
Advisory Council on Historic Preservation, state historical 
preservation offices, and state air and water pollution 
agencies. Airports must also comply with over 40 Federal laws, 
often with conflicting and confusing mandates.
    According to FAA data, the average environmental impact 
statement (EIS) takes three and one half years to complete. 
There are several additional Federal environmental planning and 
permitting requirements outside of the EIS process that can add 
significant delays. For example, FAA completed the EIS for 
Seattle's third runway in 1997 in less than three years, yet 
construction has been delayed for the last six years due to the 
Clean Water Act and Endangered Species Act permitting 
requirements. Legal challenges to environmental documents can 
also add significant delays to the process.
    Title II of the reported bill is intended to cut through 
red tape and eliminate duplication without diminishing existing 
environmental laws or limiting local input or control over 
these critical projects. It will ensure that once a community 
reaches consensus on a critical capacity project, the review 
process will not unnecessarily delay construction. It 
designates the Department of Transportation as the lead agency 
for the project review process, and it 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.
    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 strongly supports construction and 
improvements at all airports, not only the ones that qualify as 
congested. While most of the streamlining provisions of this 
bill focus on congested airports because of their impact on the 
national air transportation system, improvements at other 
airports are also important and should be encouraged.
    At the same time, the Committee does not wish to deny the 
legitimate rights of citizens that live near airports. 
Therefore, the Committee encourages the FAA and airport 
authorities, during public consideration of an airport 
development project at any airport, even a general aviation 
airport, to clearly explain the impacts of such a project to 
local communities surrounding the airport, in terms that will 
be understood by those communities.
    Imperial County, California. The Committee strongly 
encourages the San Diego California Regional Airport Authority 
to continue its process to find a site for the next San Diego 
International Airport, authorized and funded under Pub. Law No. 
106-622, the FY 2001 Transportation Appropriations bill, 
including giving appropriate consideration to the cost and 
benefits to travelers of constructing an airport in Imperial 
County, California.
    Airport Technical Assistance Program. The Committee 
strongly encourages the FAA to work with state aviation 
agencies 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 a state aviation 
agency and a university that have created a similar program for 
general aviation airports in their state.
    New York Integrated Control Complex. The Committee strongly 
encourages the integration into one new facility of the 
functions of the New York Air Route Traffic Control Center 
(ZNY) and the New York TRACON (N90), both of which are aging 
facilities in need of replacement. Integration of these 
facilities and their controllers will bring about a highly 
responsive, dynamic system to meet the future air traffic 
demands of this complex airspace, allowing for more efficient 
routing, increased capacity and reduced delays for aircraft 
approaching the New York, New Jersey, and Philadelphia air 
space.
    Temporary Flight Restrictions. The Committee is concerned 
with the operational impacts of post 9-11 Department of Defense 
security Temporary Flight Restrictions (TFRs), including TFRs 
imposed by FAA notice to airman (NOTAM) numbers 2/0447, 2/0449, 
2/0451 and 1/1812. The Committee encourages the FAA to work 
with DOD representatives, and all affected parties to evaluate 
the need for on-going DOD requested TFRs for the areas affected 
by NOTAM numbers referenced above as well as with on-going DOD 
requested TFRs in other areas of the country.
    OSHA. The Committee strongly encourages 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. This mechanism should build upon 
the ``joint team'' framework initiated by the August 2000 MOU. 
It could include recommendations for facilitating the training 
of inspectors to inspect and enforce any safety and health 
standards on board aircraft that may be adopted. Airlines 
should work with the Federal government to develop empirical 
data regarding workplace safety in thecabin during flight 
operations, identify potential occupational safety issues, and develop 
appropriate and feasible responses.

                       Summary of the Legislation


Section 1. Short Title; Table of Contents

    The short title is ``Flight 100--Century of Aviation 
Reauthorization Act''. This is intended to commemorate the fact 
that this bill is being enacted during the 100th anniversary of 
the Wright Brothers first flight. It both honors the 
achievements of the past century and sets the stage for further 
improvements in the century to come.

Section 2. Amendments to Title 49, United States Code

    Amendments in this Act are to Title 49 of the U.S. Code.

Section 3. Effective Date

    Except as otherwise provided, this Act, and amendments made 
by this Act, are effective on the date of enactment.

                        TITLE I--AUTHORIZATIONS


Section 101. Federal Aviation Administration Operations

    Subsection (a) amends section 106(k) of Title 49.
    Paragraph (k)(1) 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.
    Paragraph (k)(2) authorizes some of this money to be used 
to fully utilize the FAA's Palm Coast management training 
facility.
    Paragraph (k)(3) 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.
    Paragraph (k)(4) 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.
    Paragraph (k)(5) 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.
    Paragraph (k)(6) authorizes some of this money be used to 
complete the mapping of Alaska's main aviation corridors.
    Paragraph (k)(7) authorizes some of this money be used for 
the Aviation Safety Reporting System.
    Subsection (b) authorizes Trust Fund money to be spent to 
support the Bureau of Transportation Statistics' activities 
collecting and analyzing aviation data.
    Subsection (c) 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.
    Subsection (d) calls for a report on the Aviation Safety 
Reporting System.

Section 102. Air Navigation Facilities and Equipment

    This section authorizes $2.938 billion in 2004, $2.993 
billion in 2005, $3.053 billion in 2006, and $3.110 billion in 
2007 for the FAA's facilities and equipment (F&E) program. Out 
of these amounts, money should be spent to improve the safety 
and efficiency of air operations in the Gulf of Mexico, $20 
million should be spent to document and demonstrate the 
benefits of a wake vortex advisory system, and $20 million 
should be spent for precision approach landing systems 
contingent on FAA certifying or approving these systems. 
Precision approach landing systems are designed for use at 
airports where complex terrain or land constraints make the 
installation and use of a traditional Instrument Landing System 
(ILS) cost-prohibitive or infeasible. The precision approach 
landing systems may promote aviation safety and economic growth 
by enabling aircraft to land in Instrument Meteorological 
Conditions at airports where such landings are not otherwise 
possible. Authorizations in this section are somewhat higher 
than the Administration's request in order to accommodate 
section 106 of this Act and the specific authorizations in this 
section.

Section 103. Airport Planning and Development and Noise Compatibility 
        Planning and Programs

    Provides $3.4 billion for the Airport Improvement Program 
(AIP) in 2004. This amount is increased by $200 million each 
year thereafter.

Section 104. Additional Authorizations

    Subsection (a) authorizes funding for the contract tower 
program for 4 years.
    Subsection (b) authorizes funding for 5 years for the 
program established in AIR 21 to improve service at underserved 
airports.
    Subsection (c) reauthorizes the program to permit loan 
guarantees to be offered for the purchase of regional jets to 
serve small airports.
    Subsection (d) reauthorizes 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.
    Subsection (e) continues the provision permitting 
contractors to both design and build an airport improvement 
project.
    Subsection (f) allows Washington Reagan National and 
Washington Dulles airports to continue to receive AIP grants.

Section 105. Insurance

    Subsection (a) 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.
    Subsection (b) permits DOT to keep in effect after August 
31, 2004 the war risk insurance policies that must be in effect 
until that date.
    Subsection (c) 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.
    Subsection (d) 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.

Section 106. Pilot Program for Innovative Financing for Terminal 
        Automation Replacement Systems

    This section 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.

                 TITLE II--AIRPORT PROJECT STREAMLINING


Section 201. Short Title

    Provides that the Title may be cited as the ``Airport 
Streamlining Approval Process Act of 2003''.

Section 202. Findings

    Makes a number of findings regarding our Nation's major 
airports and the environmental review process for airport 
capacity projects at congested airports.

Section 203. Promotion of New Runways

    Amends section 40104 of Title 49, United States Code, by 
adding a new subsection, which 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.

Section 204. Airport Project Streamlining

    Subsection (a) amends Chapter 471 of Title 49, United 
States Code, by adding after section 47153 a new ``Subchapter 
III--Airport Project Streamlining'' with the following new 
sections:
    Section 47171, ``DOT as lead agency,'' subsection (a) 
requires the Secretary to develop and implement an 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. The 
Committee recommends that this section be implemented in a 
manner consistent with Council on Environmental Quality 
regulations and policy guidance.
    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 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.
    The Committee recognizes that the Department of 
Transportation and the Federal Aviation Administration have 
significant expertise and experience on transportation-related 
matters. Therefore, the Committee believes 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 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 
Committee believes 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.
    Subsection (i) states that in applying subsections (g) and 
(h), the Secretary shall solicit and consider comments from 
interested persons and governmental entities.
    Subsection (j) provides that the Transportation 
Infrastructure Streamlining Task Force, established by 
Executive Order 13274, may monitor airport projects that are 
subject to the coordinated review process under this section.
    Section 47172, ``Categorical exclusions,'' 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. The Committee is aware that 
the FAA has a process, consistent with the National 
Environmental Policy Act, whereby it excludes certain types of 
projects from the environmental review process.
    This section would require the FAA to publish a list of 
categorical exclusions from the requirement under the National 
Environmental Policy Act (``NEPA'') to prepare an environmental 
assessment or environmental impact statement. This requirement 
is not intended to alter NEPA, or to change or expand the 
definition of a categorical exclusion. The Committee notes that 
the FAA has committed to prepare a full environmental impact 
statement regarding several regional airspace redesign 
projects, including the redesign of the New York-New Jersey-
Philadelphia airspace. This provision is not intended to alter 
that commitment. In particular, the Committee notes that, under 
current FAA policy stated in FAA Order 1050.1D, the presumption 
that airspace changes over 3,000 feet above ground level will 
not cause a significant environmental impact does not apply 
where there are ``extraordinary circumstances'' present, such 
as when the action is ``highly controversial on environmental 
grounds.'' This provision is not intended to change current FAA 
policy. At the same time, this provision does not bar the FAA 
from revising FAA Order 1050.1D in accordance with NEPA and 
Council on Environmental Quality regulations.
    The Committee has been made aware of an issue regarding the 
environmental review of air carrier operations specifications. 
Operations specifications govern the class and size of aircraft 
to be operated by an air carrier at specific airports to ensure 
that those specific aircraft can be operated safely at those 
airports, but do not control the frequency or timing of 
operations. FAA environmental procedures allow for operations 
specifications to be categorically excluded from NEPA review, 
unless the FAA determines that approval may significantly 
change the character of the operational environment of an 
airport. In that case, FAA will conduct the necessary 
environmental review of the proposed operations specifications. 
However, the Committee has been informed that the data and 
analysis required to determine whether the approval or 
amendment of an operations specification should be 
categorically excluded has not been consistently applied 
throughout the FAA offices responsible for conducting such 
reviews, which has added to the cost and time of processing 
operations specifications. The Committee strongly urges the FAA 
to issue guidance to ensure consistent and timely review of all 
applications for operations specifications approvals and 
amendments.
    In addition, the Committee is concerned that the 
environmental review requirements place an unfair burden on new 
entrants to a market. The Committee will assess whether further 
legislative action is needed to address the problems 
identified.
    Section 47173, ``Access restrictions to ease 
construction,'' provides that at the request of an airport 
sponsor for 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 is (1) necessary to mitigate significant 
noise impacts and expedite construction of the runway; (2) 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.
    Section 47174, ``Airport revenue to pay for mitigation,'' 
subsection (a) states, that the Secretary may allow an airport 
sponsor carrying out an airport 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. 
The Secretary should allow such payments to be made only if 
they are designed to further the project, not if they are 
designed to thwart it or would be abused by opponents of the 
project.
    Subsection (b) describes what the mitigation measures 
described in Subsection (a) may include.
    Section 47175, ``Airport funding of FAA staff,'' subsection 
(a) provides that the Administrator of the FAA may accept funds 
from an airport sponsor 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 sponsor, to 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).
    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 transferred under subsection 
(b), in any fiscal year for with the FAA 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, 
for the activities described in subsection (a). This is 
designed to ensure that airport or AIP money is utilized only 
to provide additional funds for environmental staff, not merely 
replace funds the FAA's operating account that would been 
provided for this purpose in any event.
    Section 47176, ``Authorization of appropriations,'' 
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.
    Section 47177, ``Designation of aviation safety and 
aviation security projects for priority environmental review,'' 
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, analyses, opinions, permits, licenses, 
and approvals described in paragraph (1) 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 
determines 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, ``Definitions,'' provides a list of 
definitions of terms used in the subchapter.

Section 205. Governor's Certificate

    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.

Section 206. Construction of Certain Airport Capacity Projects

    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.

Section 207. Limitations

    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. Relationship to Other Requirements

    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.

                   TITLE III--FEDERAL AVIATION REFORM


Section 301. Management Advisory Committee Members

    This section reduces the FAA's Management Advisory Council 
(MAC) to 13 members to reflect the removal of the Air Traffic 
Services Subcommittee. The DOT Secretary rather than the 
President would fill any remaining vacancies in the MAC.

Section 302. Reorganization of the Air Traffic Services Subcommittee

    This section 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. Compensation of the Board Members is eliminated.

Section 303. Clarification of the Responsibilities of the Chief 
        Operating Officer

    This section 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).

Section 304. Small Business Ombudsman

    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. The Committee 
continually hears that regulatory actions designed primarily to 
address problems at larger carriers have a disproportionate 
effect on smaller air carriers. Many of these companies do not 
have the sort of Washington representation to effectively make 
their concerns known to decisionmakers. This provision is 
designed to help small businesses bridge that gap and help to 
ensure that small aviation business concerns are considered 
when regulatory and other decisions are made.

Section 305. FAA Purchase Cards

    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).

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS


Section 401. Improvement of Aviation Information Collection

    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.
    Under current law, the Secretary of Transportation is 
required to collect and disseminate information on civil 
aeronautics, including information on the origin and 
destination of passengers in interstate air transportation, and 
the number of passengers traveling by air between any two 
points in interstate air transportation. However, current law 
specifically prohibits the Secretary from requiring an air 
carrier to provide information on the number of passengers or 
the amount of cargo on a specific flight. According to the 
Department of Transportation, the prohibition on collecting 
information by specific flight was considered necessary to 
protect the competitive position of air carriers, but has not 
substantially encouraged competition and is not effective. Air 
carriers can and do obtain their competitors' passenger and 
cargo data by flight number in other ways, including surveys, 
observations of traffic, and purchase of reservation data from 
private third parties. As part of the Department's Aviation 
Data Requirements Review and Modernization Program, the 
Department is planning to modernize the O&D data collection 
system so that it is based on existing internal automated data 
systems maintained by the airlines and/or computer reservation 
systems (CRSs). For example, there is a CRS-based data file 
called the Transaction Control Number (TCN) file. In the 
process of ticketing airline passengers, airlines and related 
computer reservation systems electronically record the majority 
of transactions in the standard TCN formats for various 
accounting, reconciliation, and seat inventory control 
purposes. The Department believes that these TCN data could 
provide an alternative, less expensive source of traffic and 
faredata. The Department anticipates issuing a proposed rule on 
this subject by early 2004. Removal of the restriction on collecting 
data by flight will enable the Department to calculate more accurately 
such performance measures as the number of passengers affected by 
flight delays, the average time required to travel on particular 
routes, the reliability of travel time for passengers, and the average 
fare paid by passengers. It will also enable the Transportation 
Security Administration to deploy its screening workforce more 
effectively by identifying the times of day and days of the week that 
experience the most passenger travel and, therefore, require the most 
screening personnel.

Section 402. Data on Incidents and Complaints Involving Passenger and 
        Baggage Security Screening

    This section requires DOT to publish passenger complaints 
about screening problems in the same way that it publishes 
complaints about delays, lost baggage, etc.

Section 403. Definitions

    This section places the various definitions of ``hub'' in 
one place in Title 49 rather than scattered throughout the code 
as they are now.

Section 404. Clarifications to Procurement Authority

    Subsection (a) deletes references to certain statutes 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 since that deadline has long 
since been met. It adds the procurement of ``services'' to the 
list of actions to which the FAA's procurement system applies. 
It also clarifies the procedures for contract.

Section 405. Low-Emission Airport Vehicles and Ground Support Equipment

    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.

Section 406. Streamlining of the Passenger Facility Fee Program

    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 be included in that application. This would 
obviate the need for further notice and comment after the 
application is submitted and paragraph (a)(4) makes that 
current notice and comment requirement optional with the 
agency. 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.
    Subsection (c) 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.

Section 407. Financial Management of Passenger Facility Fees

    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.

Section 408. Government Contracting for Air Transportation

    Subsection (a) 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.
    Subsection (b) 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.

Section 409. Overflights of National Parks

    Subsection (a) 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.
    Subsection (b) 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.

Section 410. Collaborative Decision Making Pilot Program

    Subsection (a) requires a pilot program to be established 
within 90 days that would allow airlines to discuss changes in 
flight schedules in the event of a capacity reduction event 
such as a thunderstorm.
    Subsection (b) 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.
    Subsection (d) 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.
    Subsection (e) 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.
    Subsection (f) states which airlines are eligible to 
participate.
    Subsection (g) 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.
    Subsection (h) 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. In conducting this 
evaluation, the Committee suggests that the Administrator 
should consider using measures in addition to the existing 15-
minute on-time departure standard. For example, factors such as 
the probability of making a connection and the average delay 
per itinerary could be helpful in better understanding 
passenger delays, since data on aircraft departure delays do 
not reflect the delay experienced by passengers on cancelled 
flights. In addition, 30- and 45-minute on-time departure 
standards metrics (rather than just 15-minute) could be helpful 
in measuring the average length of delays.
    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).

Section 411. Availability of Aircraft Accident Site Information

    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.

Section 412. Slot Exemptions at Ronald Reagan Washington National 
        Airport

    Subsection (a) increases the number of slot exemptions to 
be granted outside the 1,250 mile perimeter from 12 to 24.
    Subsection (b) increases the number of slot exemptions to 
be granted inside the perimeter from 12 to 20.
    Subsection (c) 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, 10 to medium size or smaller 
airports, and 4 to any airport.
    Subsection (d) directs DOT to establish procedures for the 
grant of these slot exemptions.
    Subsection (e) requires DOT to study the impact of locally 
imposed perimeter rules on competition and air service to 
communities outside that perimeter.
    Subsection (f) requires DOT to study the impact of changing 
the definition of commuter to encompass 76 seat regional jets 
in that definition.

Section 413. Notice Concerning Aircraft Assembly

    This section requires U.S. airlines to include on the 
placard in the seat back pocket a notice informing the 
passenger of where the aircraft was built. This placard now 
typically contains information about the model of the aircraft 
and safety procedures concerning the aircraft. Other products 
people purchase typically inform customers where that product 
was made.

Section 414. Special Rule To Promote Air Service to Small Communities

    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. It 
would authorize air service with aircraft configured for ten 
passenger seats or less to or from smaller airports, with 
individual seats sold at anegotiated price. There are no 
requirements on the frequency of this service or the cities it would 
serve. This service is not intended as a replacement for essential air 
service, and the service will be subject to all applicable FAA and DOT 
regulations.
    This provision is designed to encourage a charter-type 
service to non-hub airports, in which flights would be operated 
on-demand, with the times and destinations negotiated by 
prospective passengers. It is anticipated that these 
negotiations could take place on the Internet. While the 
Committee is supportive of encouraging this type of service, it 
believes that it must not be permitted to turn into scheduled 
service, without complying with all regulations governing 
scheduled service. The service would lose its character as on-
demand service if the operator indicated on its web site, or in 
published material, that flights would be operated at specific 
times to specific destinations. However, operators would be 
allowed to advertise destinations only to spark interest by 
customers. In addition, an operator should be able to post to 
the web that a customer has requested travel to a specific 
destination within a certain timeframe on a particular day so 
that others can join in and all reduce their respective price. 
Furthermore, this provision is not intended to increase traffic 
at reliever airports in markets already being served by one or 
more hub airports.

Section 415. Small Community Air Service

    Subsection (a) 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 it can promote that 
service. It also phases in a requirement that communities pay a 
local share of the subsidy in order to continue to receive EAS. 
Whether a community is subject to a local share requirement 
will depend on its distance from a hub. That distance should be 
determined by the most commonly used highway route, which may 
not be the most direct route in all cases.
    Subsection (b) revises the small community air service 
development grant program to improve air service at underserved 
communities 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.
    Subsection (c) 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.
    Subsection (d) requires DOT to give a community 90 days 
notice before it discontinues subsidies to a community as a 
result of that community's failure to meet mileage or per 
passenger subsidy targets established in Appropriations Acts.
    Subsection (e) directs DOT to encourage the submission of 
joint fare proposals, as they would benefit service to small 
communities.
    Subsection (f) 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 
would not have to pay a local share and could not receive 
service under the established EAS program in the fiscal year in 
which they participated in the alternate program. This would 
not prohibit a community from getting back into the EAS program 
in a later fiscal year if it was still otherwise eligible for 
it.

Section 416. Type Certificates

    Subsection (a) requires anyone building a new aircraft 
based on a type certificate to have the permission of the 
holder of that type certificate. This treats type certificates 
the same as supplemental type certificates for this purpose.
    Subsection (b) 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.

Section 417. Design Organization Certificates

    This section directs FAA to develop within 3 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.

Section 418. Counterfeit or Fraudulently Represented Parts Violations

    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.

Section 419. Runway Safety Areas

    This section 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.

Section 420. Availability of Maintenance information

    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. This section does not require manufacturers to 
provide proprietary information or to produce maintenance 
manuals if they were not already required to produce them 
underFAA rules. The Committee believes safety would be enhanced if 
repair stations always had access to the information in these manuals.
    Subsection (a) codifies the existing Federal Aviation 
Regulation (FAR) in 14 CFR section 21.50(b) that requires 
holders of a design approval to prepare and furnish 
Instructions for Continued Airworthiness (ICA) to the owner of 
each type certificated product and thereafter to make those 
instructions available to any person required to comply with 
the FAR. This includes subsequent owner/operators and 
maintenance providers.
    Subsection (b) contains definitions clarifying the meaning 
of several terms in subsection (a).
    Subsection (b)(1) defines ``make available'' to mean at a 
price not to exceed the cost of preparation and distribution. 
This is the same standard used by the Food and Drug 
Administration (FDA) in 21 CFR section 1050.10(f) pertaining to 
the availability of servicing information for ultrasound 
therapy products. It is similar to the ``fair and reasonable'' 
standard used by the EPA in requiring automobile manufacturers 
to make maintenance information available to independent 
service stations pursuant to 40 CFR section 86.094-38. The 
Committee intends that the cost of preparation and distribution 
contemplated by subsection (b)(1) include such factors as the 
type of information provided, the format in which it is 
distributed (such as hard copy, compact disks or through the 
world-wide web), the quantity of material and the detail of the 
information. It could reasonably include, for example, the cost 
of maintaining a technical publications department, technical 
writers and those engineers specifically assigned to develop 
new repairs and alterations essential to continued 
airworthiness. The creation of ICAs (and changes thereto) is 
currently required as a condition for obtaining most FAA design 
approvals. Therefore, design approval holders should not charge 
for engineering costs associated with obtaining their original 
FAA design approval, creating the original ICAs or making FAA-
required changes to the approved design under 14 CFR Part 21. 
The Committee recognizes that many design approval holders 
charge for their engineering services, such as when a repair 
station submits an independently developed repair to the design 
approval holder for approval. This section does not affect this 
practice.
    Subsection (b)(2) defines the term ``design approval'' to 
include at least those design approvals issued by the FAA, such 
as type certificates, amended and supplemental type 
certificates, parts manufacturer approvals and technical 
standard order authorizations. This section requires each 
design approval holder to create ICAs unless information 
essential to continued airworthiness of that article is 
included in the ICAs of a higher-level design approval holder.
    Subsection (b)(3) defines the term ``Instructions for 
Continued Airworthiness''. The definition is consistent with 
FAA regulations contained in 14 CFR Parts 21 and 43, as well as 
FAA guidance material.
    Subsection (c) requires the Administrator to conduct a 
rulemaking to accomplish several objectives.
    Subsection (c)(1) requires the Administrator to determine 
what is essential to continued airworthiness of the applicable 
aircraft, aircraft engine or propeller.
    Subsection (c)(2) requires the Administrator to determine 
whether other activities requiring FAA-approved technical data, 
such as major repairs and major alterations, are design 
approvals and should therefore be subject to the ICA rules. The 
Committee notes that the same airworthiness standards apply to 
major repairs and major alterations as apply to new products. 
The Committee understands that the FAA has extended the ICA 
requirement to parts manufacturer approvals (in those cases 
where the existing ICAs are not adequate to ensure continued 
airworthiness) and major alterations conducted under the field 
approval process. The Administrator should also consider 
whether ICAs (such as inspection criteria or wear tolerances) 
should be required for independently developed major repairs. 
Because information necessary to determine the continued 
airworthiness of these repairs are not contained in the ICAs, 
this would enable a subsequent maintenance provider to 
adequately determine whether a major repair remained in an 
airworthy condition.
    Subsection (c)(3) requires the Administrator to change 
current section 21.50(b) to reflect the definition of design 
approval contained in subsections (b)(2) and (c)(2) of this 
section.
    Section (c)(4) requires the Administrator to determine 
whether maintenance manuals that were created prior to January 
29, 1981 (and any changes thereto) should be made available to 
persons required to comply with the Federal Aviation 
Regulations. There is no doubt that maintenance manuals are 
critical to ensuring aviation safety. In addition, the 
Committee notes that some predecessor regulations to section 
21.50(b) required that these manuals be made available. 
Finally, maintenance providers are required to comply with 
these manuals when they perform maintenance and alterations on 
civil aviation articles. Accordingly, the Committee believes 
these pre-1981 manuals should be made available to the maximum 
feasible extent.
    Subsection (c)(5) requires the Administrator to conduct a 
rulemaking requiring design approval holders that (1) are 
operating an ongoing business, (2) were required to produce 
maintenance manuals or ICAs under section 21.50(b), and (3) 
have not done so, to prepare and make the ICAs available as 
required by this section not later than one year after the 
regulations are adopted. The Committee notes that such entities 
are not currently in compliance with the regulations and 
expects the Administrator to act expeditiously to ensure that 
corrective action is taken.
    Subsection (c)(6) requires the Administrator to revise its 
regulations to reflect the changes made by this section. The 
current location of section 21.50(b) in Subpart B has resulted 
in confusion as to which entities are design approval holders 
covered by this regulation. The reported bill clarifies the 
definition of design approval holder in subsection (b)(2) and 
directs the Administrator to consider whether additional 
entities arealso design approval holders. Accordingly, the 
Administrator should consider relocating section 21.50(b) within Part 
21 (such as Subpart A or another location of general applicability) 
that is consistent with this definition.
    Subsection (d) provides that nothing in this section 
requires a design approval holder to make available proprietary 
information unless it is deemed essential to continued 
airworthiness pursuant to the rulemaking required by subsection 
(c)(1).

Section 421. Certificate Actions in Response to a Security Threat

    Subsection (a) requires FAA to revoke a pilot's certificate 
if the Department of Homeland Security notifies the FAA that 
the pilot is a security risk.
    Subsection (b) 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.
    Subsection (c) states that the ALJ is not bound by the 
FAA's or TSA's findings of fact or law.
    Subsection (d) allows either party to appeal an ALJ 
decision to a special panel created by the Transportation 
Security Oversight Board.
    Subsection (e) allows either party to appeal the panel's 
decision to the U.S. Court of Appeals.
    Subsection (f) 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.
    Subsection (g) sets forth the procedures for handling 
classified evidence.

Section 422. Flight Attendant Certification

    Subsection (a) 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.
    Subsection (b) 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.
    Subsection (c) designates the appropriate airline official 
to determine whether a person has successfully completed the 
training.
    Subsection (d) 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.
    Subsection (f) defines ``flight attendant''.
    This section takes effect one year after the date of 
enactment.

Section 423. Civil Penalty for Closure of an Airport Without Providing 
        Sufficient Notice

    Requires the government agency that owns or controls an 
airport to provide 30 days notice before that airport is 
closed. This is in addition to any grant assurance with which 
the airport may have to comply. There is $10,000 penalty for 
each day that the airport remains closed without having given 
the proper notice.

Section 424. Noise Exposure Maps

    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.

Section 425. Amendment of General Fee Schedule Provision

    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.

Section 426. Improvement of Curriculum Standards for Aviation 
        Maintenance Technicians

    This section requires FAA to update the curriculum for 
training aircraft mechanics to reflect current technology and 
maintenance practices.

Section 427. Task Force on Future of Air Transportation System

    This section 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 
itsfuture needs. This is based on the recommendation of the National 
Commission on the Future of the Aerospace Industry

Section 428. Air Quality in Aircraft Cabins

    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.

Section 429. Recommendations Concerning Travel Agents

    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.

Section 430. Task Force on Enhanced Transfer of Applications of 
        Technology for Military Aircraft to Civilian Aircraft

    This section 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.

Section 431. Reimbursement for Losses Incurred by General Aviation 
        Entities

    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.

Section 432. Impasse Procedures for National Association of Air Traffic 
        Specialists

    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.

Section 433. FAA Inspector Training

    Subsection (a) directs GAO to undertake a study of the 
training of FAA's safety inspectors.
    Subsection (b) is a 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.
    Subsection (c) directs the FAA to arrange for the National 
Academy of Sciences to study the staffing standards the FAA 
uses for its inspector workforce.

Section 434. Prohibition on Air Traffic Control Privatization

    Subsection (a) prohibits DOT from privatizing the functions 
performed by its air traffic controllers who separate and 
control aircraft.
    Subsection (b) 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 airport traffic 
control towers that are part of the FAA contract tower program 
in addition to non-towered airports and non-federal towers that 
would qualify for participation in this program.

Section 435. Airfares for Members of the Armed Forces

    This is a sense of Congress urging airlines to provide low 
fares for Members of the Armed Forces of the United States.

Section 436. Air Carriers Required to Honor Tickets for Suspended Air 
        Service

    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.

Section 437. International Air Show

    This section directs DOT to study the feasibility of the 
United States hosting an international air show to rival the 
one in Paris. The Committee is aware that a similar provision 
has been included in H.R. 1588 and urges DOT to work with the 
Department of Defense on this matter.

Section 438. Definition of Air Traffic Controller

    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.
    Subsections (a) and (b) amend 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.
    Subsection (c) clarifies that CSRS and FERS mandatory 
retirement provisions that apply to line air traffic 
controllers do not apply to second level supervisors.
    Subsection (d) specifies that this section shall take 
effect on the 60th day after the date of enactment.
    Subsection (e) allows current second level supervisors who 
have been promoted prior to enactment to retroactively pay into 
the higher CSRS accrual rate.

Section 439. Justification for Air Defense Identification Zone

    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.

Section 440. International Air Transportation

    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.

Section 441. Reimbursement of Air Carriers for Certain Screening and 
        Related Activities

    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.

Section 442. General Aviation Flights at Ronald Reagan Washington 
        National Airport

    This is a sense of Congress that Reagan National Airport 
should be opened to general aviation flights as soon as 
possible.

                      TITLE V--AIRPORT DEVELOPMENT


Section 501. Definitions

    This section includes the various hub definitions in 
Chapter 471 of title 49.

Section 502. Replacement of Baggage Conveyer Systems

    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.

Section 503. Security Costs at Small Airports

    This section allows small airports to use their AIP 
entitlement funds in fiscal year 2004 to pay the operating 
costs required to meet new security requirements.

Section 504. Withholding of Program Application Approval

    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.

Section 505. Runway Safety Areas

    This section 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.

Section 506. Disposition of Land Acquired for Noise Compatibility 
        Purposes

    Rather than depositing the proceeds from the sale of land 
into the aviation trust fund, this section allows an airport to 
retain those proceeds and use them for another noise 
compatibility project including the purchase of residential or 
non-residential property near the airport.

Section 507. Grant Assurances

    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 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.
    Subsection (b) 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.
    Subsection (c) clarifies the review of revenue use through 
the annual audit activities under the Single Audit Act of Title 
31.

Section 508. Allowable Project Costs

    Subsection (a) 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.
    Subsection (b) permits AIP grants to be used at small 
airports to pay the interest on a bond used to finance an 
airport project.
    Subsection (c) 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.

Section 509. Apportionments to Primary Airports

    Subsection (a) lowers the entitlement for the largest 
airports by 5 cents for each passenger at that airport over 3.5 
million in a year.
    Subsection (b) allows airports that fell below the $10,000 
passenger threshold for qualifying as a primary airport 
following the September 11th terrorist attack to continue to 
receive their primary airport entitlement for two years.

Section 510. Cargo Airports

    This section increases the entitlement for airports with 
air cargo service from 3% of total AIP to 3.5%.

Section 511. Considerations in Making Discretionary Grants

    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, as it is not a 
provision of general applicability like the others. 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.

Section 512. Flexible Funding for Nonprimary Airport Apportionments

    Subsection (a) 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.
    Subsection (b) permits multiyear grants using the general 
aviation entitlement to the same extent that they are permitted 
using the primary airport entitlement.
    Subsection (c) 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. This 
will help small airports become more self-sufficient.
    Subsection (d) permits a general aviation airport to use 
its AIP entitlement for terminal development.

Section 513. Use of Apportioned Amounts

    Subsection (a) broadens the category for which noise set-
aside funds may be used.
    Subsection (b) eliminates the special set-aside for 
reliever airports since there is no evidence that the 
particular airports singled out by that set-aside are actually 
providing any more relief from congestion than other airports 
that do not qualify it.
    Subsection (c) 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.

Section 514. Military Airport Program

    This section 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.

Section 515. Terminal Development Costs

    This section restates two provision in current law that 
permit 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.

Section 516. Contract Towers

    This section updates the section on the FAA's contract 
tower program and increases the maximum Federal share for the 
construction of a tower under this program. The Committee 
supports the FAA contract tower program as a cost-effective way 
to enhance air traffic safety at smaller airports that 
otherwise would not enjoy the safety benefits of a tower. The 
Department of Transportation Inspector General has supported 
the benefits of this program in numerous audits.

Section 517. Airport Safety Data Collection

    This section allows FAA to use AIP money to enter into a 
sole source contract with a private entity to collect airport 
safety data.

Section 518. Airport Privatization Pilot Program

    Subsection (a) 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.
    Subsection (b) eliminates the provision that limits the 
Federal share of a discretionary grant for a privatized airport 
to 40%.

Section 519. Innovative Financing Techniques

    This section allows 10 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) of the reported bill.

Section 520. Airport Security Program

    This section directs the FAA to continue to administer this 
particular 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.

Section 521. Low-Emission Airport Vehicles and Infrastructure

    Subsection (a) 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.
    Subsection (b) 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.
    Subsection (c) makes projects that will reduce emissions at 
airports eligible for AIP grants.
    Subsection (d) 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.
    Subsection (e) defines low-emission equipment.

Section 522. Compatible Land Use Planning and Projects by State and 
        Local Governments

    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. 
The goal is to achieve more responsible land uses around 
airports in jurisdictions that are not under the control of the 
airport owner or operator. Conditions are imposed to avoid 
undermining the efforts of the airport. This provision will 
expire in 4 years and could be reevaluated and continued at 
that time if it is meeting its goals without impeding airport 
operations. The FAA should utilize this section only where it 
will further the interests of aviation and should not allow it 
to be abused by opponents of the airport.

Section 523. Prohibition on Requiring Airports To Provide Rent-Free 
        Space for Federal Aviation Administration

    This section continues provisions that have previously been 
included in various appropriations acts to require FAA to pay 
rent for the space that they use at airports. Exceptions are 
provided for agreements that might be negotiated with the 
airport and for land and facilities needed to house the air 
traffic controllers. This section is not intended to supersede 
the grant assurance in section 47107(a)(12) that facilities be 
provided without charge to the FAA for air traffic control and 
navigation.

Section 524. Midway Island Airport

    Subsection (a) finds that the airport on Midway Island is 
critical to the safety of flights over the Pacific Ocean.
    Subsection (b) 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.
    Subsection (c) allows the airport to transfer its 
navigation aids to the FAA and requires the FAA to operate and 
maintain them.
    Subsection (d) makes aviation trust fund money available to 
the Interior Department for capital projects at the airport.

            Legislative History and Committee Consideration

    Hearings were held on FAA reauthorization on February 12, 
March 6, March 12, March 27, and April 9, 2003. The 
Subcommittee approved by voice vote a committee print of H.R. 
2115 on May 14, 2003 and the Committee on Transportation and 
Infrastructure approved by voice vote H.R. 2115, as amended, on 
May 21, 2003.

                             Rollcall Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each rollcall 
vote on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against. There were no rollcall votes on H.R. 2115.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                          Cost of Legislation

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                    Compliance With House Rule XIII

    1. With respect to the requirement of clause 3(c)(2) of 
rule XIII of the Rules of the House of Representatives, and 
308(a) of the Congressional Budget Act of 1974, the Committee 
references the report of the Congressional Budget Office 
included below.
    2. With respect to the requirement of clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, the 
performance goals and objective of this legislation are to 
improve the safety and efficiency of the civil aviation system 
in the United States.
    3. With respect to the requirement of clause 3(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2115 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 5, 2003.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2115, the Flight 
100--Century of Aviation Reauthorization Act, as ordered 
reported by the House Committee on Transportation and 
Infrastructure on May 21, 2003, and including amendments 
specified in a letter to CBO on June 4, 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The principal CBO staff contacts for 
federal costs are Mark Hadley and Megan Carroll. The staff 
contact for the private-sector impact is Jean Talarico, and the 
contact for the state and local impact is Gregory Waring.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 2115--Flight 100--Century of Aviation Reauthorization Act

    Summary: H.R. 2115 would authorize appropriations for 
programs administered by the Federal Aviation Administration 
(FAA). Most of the bill's authorizations would extend for four 
years: the 2004-2007 period. CBO estimates that implementing 
H.R. 2115 would cost about $48.4 billion over the next five 
years, assuming appropriation actions consistent with the 
amounts that would be authorized by the bill and the levels of 
new contract authority (a mandatory form of budget authority) 
it would provide for aviation programs. In addition, we also 
estimate that enacting the bill would increase direct spending 
by $1.4 billion over the 2004-2008 period and by $2.7 billion 
over the next 10 years. Finally, CBO and the Joint Committee on 
Taxation (JCT) estimate that H.R. 2115 would increase revenues 
by $3 million over the 2004-2008 period and $11 million over 
the next 10 years.
    H.R. 2115 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA) because it would 
require state and local governments to notify the FAA if they 
intend to close an airport. CBO estimates that the cost of this 
mandate would be minimal and would be significantly below the 
threshold established in that act ($59 million in 2003, 
adjusted annually for inflation). The bill would authorize 
grants for various activities that would benefit state and 
local governments.
    H.R. 2115 would impose private-sector mandates as defined 
in UMRA on air carriers. CBO estimates that the direct costs of 
those mandates would fall below the annual threshold 
established in UMRA ($117 million in 2003, adjusted annually 
for inflation) in the first five years the mandates are in 
effect.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2115 is shown in Table 1. The costs of 
this legislation fall within budget function 400 
(transportation) and 600 (income security).

                                TABLE 1.--ESTIMATED BUDGETARY IMPACT OF H.R. 2115
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2003      2004      2005      2006      2007      2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending under current law:
    Budget authority \1\............................    10,160        15        15        15        15        15
    Estimated outlays \2\...........................    13,364     5,764     3,886     3,616     3,500     3,472
Proposed changes:
    FAA operations:
        Estimated authorization level...............         0     7,591     7,732     7,889     8,064         0
        Estimated outlays...........................         0     6,756     7,716     7,872     8,045       887
    Air navigation facilities and equipment:
        Estimated authorization level...............         0     3,138     2,993     3,053     3,110         0
        Estimated outlays...........................         0     1,349     2,542     2,824     3,015     1,730
    Reimbursing airports and air carriers:
        Estimated authorization level...............         0     1,300       800       800       800       800
        Estimated outlays...........................         0       780       870       850       800       800
    Airport improvement program (AIP) \3\
        Estimated authorization level...............         0         0         0         0         0         0
        Estimated outlays...........................         o       -56        13       154       327       480
    Other:
        Estimated authorization level...............         0       210       110       111       114       113
        Estimated outlays...........................         0       148       139       122       114       113
    Total proposed changes:
        Estimated authorization level...............         0    12,239    11,635    11,853    12,088       913
        Estimated outlays...........................         0     8,978    11,281    11,822    12,300     4,010
Spending under H.R. 2115:
    Estimated authorization level \1\...............    10,160    12,254    11,650    11,868    12,103       928
    Estimated outlays...............................    13,364    14,742    15,167    15,437    15,799     7,483

                                                 DIRECT SPENDING

Baseline spending under current law:
    Estimated budget authority \3\..................     3,333     3,518     3,762     3,637     3,564     3,527
    Estimated outlays...............................       -39       140       384       258       186       149
Proposed changes:
    Terrorism risk insurance:
        Estimated budget authority..................         0        -3       -38       172       472       738
        Estimated outlays...........................         0        -3       -38       172       472       738
    AIP authorization: \3\
        Estimated budget authority..................         0        22       222       422       622       622
        Estimated outlays...........................         0         0         0         0         0         0
    Retirement Benefits for Certain FAA Employees:
        Estimated budget authority..................         0         1         1         1         2         2
        Estimated outlays...........................         0         1         1         1         2         2
    Funding for Midway Island Airport:
        Estimated budget authority..................         0         1         3         1         1         0
        Estimated outlays...........................         0         0         1         2         1         1
Spending under H.R. 2115:
    Estimated budget authority \3\..................     3,333     3,539     3,950     4,233     4,661     4,889
    Estimated outlays...............................       -39       139       349       433       661       890

                                               CHANGES IN REVENUES

Estimated revenues..................................         0         1         1         1         1         1
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated for that year for FAA's operations account; facilities and
  equipment account; research, engineering, and development account; and essential air service.
\2\ Estimated outlays under current law are from amounts appropriated for 2003 and previous years for the FAA
  operations account and the facilities and equipment account, as well as the discretionary outlays from the
  obligation limitations for the Airport Improvement Program, as assumed to continue in the budget resolution
  baseline (adopted in April 2003).
\3\ Budget authority for AIP is provided as contract authority, a mandatory form of budget authority; however,
  outlays from AIP contract authority are subject to obligaiton limitations contained in appropriation acts and
  are therefore discretionary.

Note.--Details may not add to totals because of rounding.

Basis of Estimate

    Implementing H.R. 2115 would increase spending subject to 
appropriation. Enacting the bill also would increase direct 
spending and revenues. Outlay estimates are based on historical 
spending patterns for the affected programs and on information 
provided by the Department of Transportation (DOT) and FAA 
staff.
            Spending subject to appropriation
    For purposes of this estimate, CBO assumes that H.R. 2115 
will be enacted before the start of fiscal year 2004 and that 
the amounts authorized for aviation programs will be 
appropriated for each fiscal year.
    FAA Operations. The bill would authorize the appropriation 
of $7.6 billion for fiscal year 2004, $7.7 billion for 2005, 
$7.9 billion for 2006, and $8.0 billion for 2007 for FAA 
operations. (In comparison, for fiscal year 2003, the Congress 
provided roughly $7 billion for that purpose.) CBO estimates 
that appropriation of the amounts specified in the bill would 
cost $31.3 billion over the 2004-2008 period.
    FAA Air Navigation Facilities and Equipment. H.R. 2115 
would authorize the appropriation of about $3.1 billion for 
fiscal year 2004, $3.0 billion for 2005, $3.1 billion for 2006, 
and $3.1 billion for 2007 for facilities and equipment. (In 
comparison, for fiscal year 2003, the Congress provided about 
$2.9 billion for that program.) CBO estimates that 
appropriation of those amounts would cost $11.5 billion over 
the next five years.
    Reimbursement of Airports and Air Carriers. H.R. 2115 would 
authorize the Secretary of Transportation to reimburse airports 
and air carriers for the costs of certain security activities. 
Such activities include the security screening of catering 
supplies, checking documents, screening persons with access to 
aircraft, and providing space in airports for security 
personnel that was previously used for revenue-producing 
purposes. Based on information from the American Association of 
Airport Executives and the Air Transport Association about the 
costs that airports and air carriers have incurred for these 
activities, CBO estimates reimbursing such costs could total 
$4.1 billion over the 2004-2008 period.
    FAA Airport Improvement Program. Title I would provide 
$14.8 billion in contract authority (a mandatory form of budget 
authority) over the 2004-2007 for the airport improvement 
program (AIP). Consistent with section 257 of the Balanced 
Budget and Energy Deficit Control Act, which specifies that 
certain expiring programs be assumed to continue for budget 
projection purposes, we estimate that the projected total 
amount of contract authority for AIP would be $18.8 billion 
over the 2004-2008 period. That total is $1.9 billion above the 
amounts projected in the current budget resolution baseline. 
(See the discussion of AIP under ``Direct Spending,'' below, 
for more details on the budgetary treatment of this program.)
    Assuming that the obligation limitations of AIP spending as 
set forth in annual appropriation acts, are equal to the 
projected contract authority amounts for each year, CBO 
estimates that implementing this provision would cost $917 
million over the 2004-2008 period. In addition, H.R. 2115 would 
change the composition of AIP spending, thereby reducing 
outlays below the baseline level in 2004.
    Other Provisions. CBO estimates that implementing other 
programs that would be authorized by H.R. 2115 would cost a 
total of $636 million over the 2004-2008 period. Components of 
that estimate are described below.
    Essential Air Service Program. Section 415 would authorize 
the appropriation of $50 million a year for the Essential Air 
Service program above the $15 million authorized under current 
law. In addition, section 415 would authorize the Secretary of 
Transportation to hire four additional employees to carry out 
the Essential Air Service Program. Based on historical spending 
patterns of this program. CBO estimates that implementing 
section 415 would cost $242 million over the 2004-2008 period.
    Small Community Air Service Development Program. Section 
104 would authorize the appropriation of $35 million a year 
over the 2004-2008 period for the small community air service 
development program. Based on historical spending patterns, CBO 
estimates this provision would cost $168 million over the 2004-
2008 period.
    Reimbursing General Aviation Entities. Section 432 would 
authorize the appropriation of $100 million to reimburse 
general aviation entities for the security costs incurred and 
revenue forgone as a result of the restrictions imposed 
following the terrorist attacks of September 11, 2001. CBO 
estimates this provision would cost $100 million over the 2004-
2008 period.
    Retirement Benefits for Certain FAA Employees. Section 439 
would provide an increase in retirement benefits to some 
federal employees working as air traffic controller 
supervisors. Agency retirement contributions for employees 
participating in the Federal Employees' Retirement System 
(FERS)--which includes most employees first hired after 1983--
are tied to the cost of providing benefits under that system. 
Therefore, if the costs of providingbenefits under FERS 
increase, agency contributions also increase. The FAA and Department of 
Defense currently employ about 600 air traffic controller supervisors 
who are covered by FERS. CBO estimates that section 439 would increase 
agency contributions for these employees by $88 million over the 2004-
2008 period. (This provision would also affect direct spending and 
revenues as described in the following sections.)
    Miscellaneous Provisions. Section 101 would authorize the 
appropriation of about $4 million a year over the 2004-2007 
period for the Bureau of Transportation Statistics to gather 
and analyze airline information. In addition, section 204 would 
authorize the appropriation of $4.2 million a year to 
facilitate the timely review of environmental impacts of 
projects that would enhance airport capacity. CBO estimates 
that implementing those two provisions would cost $33 million 
over the 2004-2008 period, assuming appropriation of the 
necessary amounts.
    Finally, the bill would authorize other activities that we 
estimate would cost $5 million over the 2004-2008 period, 
including task forces and studies on the future of air 
transportation, staffing standards for FAA inspectors, the 
feasibility of hosting a world-class international air show, 
and methods for transferring military technologies to civilian 
aircraft.
            Direct spending
    H.R. 2115 would extend and expand the FAA's terrorism 
insurance program for commercial airlines, provide additional 
contract authority for the Airport Improvement Program, provide 
funding for Midway Island Airport, and increase spending for 
retirement benefits for certain FAA employees. CBO estimates 
that enacting those provisions would increase direct spending 
by $1.4 billion over the 2004-2008 period and $2.7 billion over 
the 2004-2013 period. The 10-year cost of those provisions is 
summarized in Table 2.
    Terrorism Risk Insurance. Under current law, the FAA offers 
insurance to air carriers against liability arising from losses 
caused by terrorist events. The FAA's aviation terrorism 
insurance program is scheduled to end on December 31, 2004. 
H.R. 2115 would extend the authorization for that program 
through December 31, 2007. The bill also would authorize the 
FAA to expand the program by offering insurance coverage to 
companies that manufacture aircraft and aircraft engines. CBO 
estimates that the net cost of providing insurance to air 
carriers and manufacturers through December 31, 2007, would be 
about $1.3 billion over the 2004-2008 period and about $2.7 
billion over the 2004-2013 period.

                  TABLE 2.--SUMMARY OF EFFECTS ON DIRECT SPENDING AND REVENUES UNDER H.R. 2115
----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                 -------------------------------------------------------------------------------
                                   2004    2005    2006    2007    2008    2009    2010    2011    2012    2013
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Estimated budget authority......      21     188     596   1,097   1,362   1,154     975     866     757     708
Estimated outlays...............      -1     -35     175     475     741     532     353     244     135      86

                                               CHANGES IN REVENUES

Estimated budget authority......       1       1       1       1       1       2       2       2       2       2
----------------------------------------------------------------------------------------------------------------

    Currently, the FAA collects premiums from air carriers in 
exchange for certain insurance coverage. Under the bill, the 
government also would collect premiums from aircraft and 
aircraft engine manufacturers. Such premiums are recorded as an 
offset to direct spending in the year that they are collected. 
CBO estimates that under H.R. 2115, the FAA would collect about 
$500 million in additional premiums over the 2004-2008 period. 
CBO expects that the cost of providing insurance, however, 
would be much greater than premiums collected. CBO estimates 
that payments for expected net losses under the FAA insurance 
program would cost about $3.2 billion over the 2004-2013 
period.
    CBO cannot predict how much insured damage terrorists might 
cause in any specific year. Instead, our estimate of the cost 
of the insurance coverage under H.R. 2115 represents an 
expected value of payments from the program--a weighted average 
that reflects the probabilities of various outcomes, from zero 
damages up to very large damages due to possible future 
terrorist attacks. The expected value can be thought of as the 
amount of an insurance premium that would be necessary to just 
offset the risk of providing this insurance; indeed, our 
estimate of the expected cost for H.R. 2115 is based on 
private-sector premiums for terrorism insurance that have been 
adjusted for differences in costs faced by private insurance 
firms that are not borne by the federal government. While this 
cost estimate reflects CBO's best judgment on the basis of 
available information, costs are a function of inherently 
unpredictable future terrorist attacks. As such, actual costs 
could fall anywhere within an extremely broad range.
    Airport Improvement Program. H.R. 2115 would provide $14.8 
billion in contract authority over the 2004-2006 period for the 
airport improvement program. Consistent with the Balanced 
Budget and Emergency Deficit Control Act, we estimate that the 
projected total amount of contract authority would be $18.8 
billion over the 2004-2008 period and$38.8 billion over the 
2004-2013 period. Those totals are about $1.9 billion and $5 billion, 
respectively, above the amounts projected in the CBO baseline. The bill 
also would extend the authority of the Secretary of Transportation to 
incur obligations to make grants under the AIP program.
    Under current law, AIP has about $3.4 billion of contract 
authority available in 2003. Relative to the baseline, enacting 
title I would increase contract authority by $22 million in 
fiscal year 2004 and by a total of $1.3 billion over the 2004-
2007 period. As noted above, although H.R. 2115 specifies 
contract authority only through 2007, section 257 of the 
Balanced Budget and Emergency Deficit Control Act requires CBO 
to assume that contract authority for AIP would continue (for 
baseline purposes) through the entire 2004-2013 period. Under 
that requirement, the estimated level of contract authority 
would remain at $4 billion a year over the 2008-2013 period. 
That amount would exceed the amount assumed in the current 
baseline for those years by $622 million a year. Hence, CBO 
estimated H.R. 2115 would increase contract authority--above 
baseline levels--by $3.7 billion over the 2008-2013 period.
    Expenditures from AIP contract authority are governed by 
obligation limitations contained in annual appropriation acts 
and are categorized as discretionary spending. For this 
estimate, we assume that appropriation acts will set obligation 
limitations for AIP equal to the annual levels of contract 
authority.
    Current law provides for increases to AIP contract 
authority in any year that the amounts authorized to be 
appropriated for FAA's facilities and equipment account are 
greater than the amounts actually provided in appropriation 
acts for that program. By authorizing amounts for facilities 
and equipment over the 2004-2006 period, H.R. 2115 would 
authorize adjustments to AIP contract authority for those years 
as well. Any adjustment would constitute new direct spending 
authority, and all spending for AIP--including spending 
triggered by such adjustments--would still be subject to 
obligation limitations established in appropriation acts. 
Although H.R. 2115 could result in additional AIP contract 
authority of as much as $12.1 billion over the 2004-2007 period 
if no appropriations were provided for facilities and 
equipment, CBO assumes that appropriations will equal or exceed 
authorized amounts; thus, we assume no increases to contract 
authority would be made under this provision.
    Retirement Benefits for Certain FAA Employees. Section 439 
would provide some supervisors of air traffic controllers more 
generous retirement benefits than they receive under current 
law. It would also make some covered workers eligible to 
collect retirement benefits earlier than they otherwise would 
be. There are about 2,500 air traffic controller supervisors 
currently employed by the Federal Aviation Administration and 
the Department of Defense, and about 150 retire each year. CBO 
estimates this section would increase costs in two ways: it 
would increase spending because some workers would retire 
earlier than they otherwise would have, and it would increase 
annuities for some employees, regardless of when they retire. 
CBO estimates that the cost of retirement benefits would 
increase by $1 million in 2004 and by $27 million over the next 
10 years. Spending on retire health benefits would also 
increase, but by less than $500,000 annually.
    Funding for Midway Island Airport. Section 524 would 
provide $750,000 in 2004, $2.5 million in 2005, and $1 million 
in each of 2006 and 2007 for capital projects at the Midway 
Island Airport. Based on historical spending patterns for such 
projects, CBO estimates this provision would cost about $5 
million over the 2004-2008 period.
            Revenues
    H.R. 2115 would increase amounts collected from certain 
federal employees as contributions toward retirement benefits. 
Those collections are recorded in the budget as revenues. The 
bill also would result in forgone revenues as a result of an 
expected increase in the use of tax-exempt financing for 
airport project. CBO and JCT estimate that the net impact of 
those provisions would be to increase revenues by $3 million 
over the 2004-2008 period and $11 million over the next 10 
years.
    Increased Employee Contributions for Retirement Benefits. 
Section 439 would provide an increase in retirement benefits 
for some air traffic controller supervisors. Under the bill, 
employees participating in FERS would be required to contribute 
a greater portion of their salary toward the increased 
benefits. CBO estimates that raising the contribution rate on 
those employees would increase federal revenues by $1 million 
in 2004 and $5 million over the 2004-2008 period. In order to 
quality for the increased benefits for service already 
performed as a supervisor, currently employed supervisors 
participating in FERS would be required to deposit a special 
payment to the retirement fund by the time they retire. This 
payment would be designed to make up the difference between 
what they did contribute into the retirement system prior to 
the bill's enactment and what they would have contributed if 
that service has been covered all along. CBO estimates that 
implementing this provision would increase revenues by less 
than $500,000 annually.
    Forgone Revenues from Increased Use of Tax-Exempt 
Financing. By simplifying application procedures, H.R. 2115 
could encourage more smaller airports to seek authority from 
the Secretary of Transportation to charge passenger facility 
fees. JCR expects that those provisions would result in an 
increase in tax-exempt financing for airport constructionand a 
subsequent loss of federal revenue. JCT estimates that the revenue 
losses, which would not exceed $500,000 in any year, would total $2 
million over the 2004-2008 period and $4 million over the 2004-2013 
period (see Table 2).
    Estimated impact on state, local, and tribal governments: 
H.R. 2115 contains an intergovernmental mandate as defined in 
the Unfunded Mandates Reform Act because it would require state 
and local governments to notify the FAA if they intend to close 
an airport. CBO estimates that the cost of this mandate would 
be minimal and would be significantly below the threshold 
established in that act ($59 million in 2003, adjusted annually 
for inflation).
    Enacting this bill would benefit state and local 
governments because it would authorize grants to airports for 
planning, development, mitigation, and other initiatives. In 
addition, they would benefit from provisions that would 
authorize nonhub airports to use passenger facility fees to 
fund FAA-approved projects and prohibit the FAA from requiring 
airports to provide space and related services at no cost. Any 
costs incurred by state and local governments as a result of 
grant requirements in this bill would be voluntary.
    Estimated impact on the private sector: H.R. 2115 would 
impose private-sector mandates as defined in UMRA on air 
carriers. CBO estimates that the direct costs of those mandates 
would fall below the annual threshold established in UMRA ($117 
million in 2003, adjusted annually for inflation) in the first 
five years the mandates are in effect.
    H.R. 2115 would impose mandates by increasing the cost of 
two existing mandates. First, section 401 would require that 
air carriers provide certain flight information on interstate 
transportation to the Department of Transportation. The mandate 
would be effective on the date the first rule is issued to 
modernize the Origin and Destination Survey of Airline 
Passenger Traffic. In general, this rule would reduce the 
reporting burden for air carriers by allowing them to file 
information electronically with DOT. According to industry 
representatives, air carriers currently collect the flight 
information data. CBO estimates that the cost to comply with 
the mandate would be minimal.
    Second, section 411 would require that certain domestic and 
foreign air carriers update their current plans that address 
the needs of the families of passengers involved in an aircraft 
accident resulting in a major loss. The updated plan must 
include an assurance that in the case of an accident in which 
the National Transportation Safety Board (NTSB) conducts a 
public hearing 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.
    Since 1997, the NTSB has held no more than three hearings 
per year for accidents involving passenger air service. Most of 
those were held in Washington, D.C., away from the accident 
site. Typically, such hearings lasted two or three days. 
According to industry representatives, in order to comply with 
this mandate, air carriers would be required to obtain sites in 
two cities, provide screens at those sites, and supply the 
audio and visual feed of the NTSB hearing. Based on this 
information, CBO expects that the cost of making the hearings 
available would be small.
    Section 437 would extend the current requirement that air 
carriers honor other air carriers' tickets under certain 
circumstances as a result of an air carrier's bankruptcy or 
insolvency. Because the likelihood of an event resulting in 
large incremental losses to the airline industry for providing 
air transportation to passengers ticketed on a suspended route 
is relatively low, CBO estimates that the annual costs of 
complying with this mandate (in expected-value terms) would not 
be substantial.
    The bill also contains three mandates that would impose new 
requirements on air carriers. First, section 413 would require 
air carriers that provide scheduled passenger air 
transportation to display a placard available to each passenger 
that informs the passengers of the country in which the 
aircraft was finally assembled. Based on information from 
government sources, CBO estimates that air carriers would have 
to provide placards for about a million seats. The cost to 
provide the required notice on such placards would be small.
    Second, section 407 would require that air carriers that 
collect a passenger facility fee for airports to place the fees 
in an escrow account or to provide the airport with a letter of 
credit, bond, or other form of adequate and immediately 
available security in an amount equal to the estimated 
remittable passenger facility fees for 180 days. CBO is 
uncertain about the cost to comply with this mandate but it is 
likely that the cost would not be substantial.
    Third, section 423 would require air carriers to verify 
that a flight attendant has a certificate that demonstrates 
proficiency issued by the FAA. CBO estimates that the 
administrative cost to comply with this mandate would be 
minimal.
    Previous CBO estimate: On May 22, 2003, CBO transmitted a 
cost estimate for S. 824, the Aviation Investment and 
Revitalization Vision Act, as reported by the Senate Committee 
on Commerce, Science, and Transportation on May 2, 2003. Our 
estimate of spending subject to appropriation under H.R. 2115 
is about $14 billion higher than under S. 824 because H.R. 2115 
would authorize more funding over the next five years--$48.7 
billion compared to $34.2 billion authorized under S. 824.
    Our estimate of direct spending over the next 10 years 
under H.R. 2115 is about $1 billion more than under S. 824, 
primarily because H.R. 2115 would allow the FAA to sell 
terrorism insurance a longer period of time, and we estimate 
that extending that program would cost $1 billion more under 
H.R. 2115.
    There are two reasons for differences in our estimates of 
revenues under H.R. 2115 and S. 824. First, H.R. 2115 would 
increase revenues received as employee contributions toward 
retirement benefits; S. 824 has no such provision. Second, 
while JCT estimates that both bills would reduce revenues 
because of greater use of tax-exempt financing for airport 
projects, JCT estimates those losses would be less under H.R. 
2115 because provisions that would encourage such financing 
would be in effect for a shorter time than under S. 824.
    Estimate prepared by: Federal spending: Mark Hadley, Megan 
Carroll, and Geoffrey Gerhardt--for retirement costs; federal 
revenues: Andrew Shaw; impact on state, local, and tribal 
governments: Gregory Waring; impact on the private sector: Jean 
Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause (3)(d)(1) of rule XIII of the Rules of 
the House of Representatives, committee reports on a bill or 
joint resolution of a public character shall include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the measure. The Committee on 
Transportation and Infrastructure finds that Congress has the 
authority to enact this measure pursuant to its powers granted 
under article I, section 8 of the Constitution.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act. (Public Law 104-4).

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1994 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local or 
tribal law. The Committee states that H.R. 2115 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act are created by this 
legislation.

                Applicability to the Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act. (Public Law 
104-1).

                        Committee Correspondence

                          House of Representatives,
                                      Committee on Science,
                                      Washington, DC, June 6, 2003.
Hon. Don Young,
Chairman, House Committee on Transportation and Infrastructure,
Rayburn House Office Building, Washington, DC.
    Dear Chairman Young: I have reviewed H.R. 2115, Flight 
100--Century of Aviation Reauthorization Act. The bill 
authorizes research and development (R&D) programs that fall 
within the jurisdiction of the Committee on Science.
    In deference to your desire to bring this legislation 
before the House in an expeditious manner, I will not exercise 
this Committee's right to consider H.R. 2115--provided that 
your Committee acknowledges the jurisdiction of the Committee 
on Science over R&D programs regardless of the account from 
which they are funded. Further, the Committee on Science 
reserves its right to seek conferees on any provisions that are 
within this Committee's jurisdiction during any House-Senate 
conference that may be convened on this legislation and a 
corresponding Senate bill.
    Specifically, the Committee on Science has jurisdiction 
over portions of section 102. That section authorizes, among 
other things, R&D programs within the Facilities & Equipment 
Account. This includes programs that the Committee on 
Appropriations transferred to the Facilities & Equipment 
Account in 1999. The Committee retains its right to such 
conferees on other portions of this bill related to R&D.
    I request that you include this letter as part of the 
Congressional Record during consideration of the legislation on 
the House floor.
            Sincerely,
                                         Sherwood Boehlert,
                                                          Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                      Washington, DC, June 6, 2003.
Hon. Sherwood Boehlert,
Chairman, Committee on Science,
Rayburn House Office Building, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter concerning 
H.R. 2115, the Flight 100--Century of Aviation Reauthorization 
Act. I appreciate your offer to waive consideration of the 
bill.
    Traditionally, the Transportation Committee has authorized 
the equipment deployment functions from the Federal Aviation 
Administration Facilities and Equipment (F&E) account. I 
recognize that in certain years functions under the 
jurisdiction of the Science Committee were moved from the FAA 
Research, Engineering and Development (RED) account to the F&E 
account through the annual appropriations process. While I 
believe that these unauthorized appropriations do not have any 
bearing on committee jurisdiction, I prefer that the 
Appropriations Committee adhere to the authorizing language and 
refrain from moving functions from the RED account to the F&E 
account in order to benefit from a slower spend-out rate. For 
example, I would prefer that the Advanced Technology 
Development and Prototyping program remain in the RED account.
    Historically, the Science Committee has had oversight and 
authorization responsibility over the RED account while the 
Transportation Committee has had exclusive jurisdiction over 
the F&E account. I believe that continuing this practice is the 
best way to preserve the jurisdiction of both committees.
    I thank you for your attention to this matter and look 
forward to working with you and your staff. As you request, a 
copy of your letter and my response will be placed in the 
Record.
            Sincerely,
                                                 Don Young,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                                    Committee on Resources,
                                      Washington, DC, June 4, 2003.
Hon. Don Young.
Chairman, Committee on Transportation and Infrastructure,
Rayburn HOB, Washington, DC.
    Dear Mr. Chairman: I have reviewed the text of H.R. 2115, 
Flight 100-Century of Aviation Reauthorization Act, as ordered 
reported from the Committee on Transportation and 
Infrastructure on May 21, 2003. The Committee on Resources has 
a jurisdictional interest in Section 408, Overflights of 
National Parks.
    Recognizing your wish that this critical bill be considered 
by the House of Representatives as soon as possible, and noting 
the continued strong spirit of cooperation between our 
Committees, I will forego seeking a sequential referral of H.R. 
2115 for the Committee on Resources. However, waiving the 
Committee on Resources' right to a referral in this case does 
not waive the Committee's jurisdiction over any provision in 
H.R. 2115 or similar provisions in other bills. In addition, I 
ask that you support my request to have the Committee on 
Resources represented on the conference on this bill, if a 
conference is necessary. Finally, I ask that you include this 
letter in the Committee on Transportation and Infrastructure's 
bill report.
    I appreciate your leadership and cooperation on this bill 
and I look forward to working with you to see that H.R. 2115 is 
enacted into law soon.
            Sincerely,
                                          Richard W. Pombo,
                                                          Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                      Washington, DC, June 4, 2003.
Hon. Richard W. Pombo,
Chairman, Committee on Resources,
Longworth Building, Washington, DC.
    Dear Mr. Chairman: Thank you for your letter of June 4, 
2003, regarding H.R. 2115, the Flight 100--Century of Aviation 
Act, and for your willingness to waive consideration of the 
provision in the bill that falls within your Committee's 
jurisdiction under House Rules.
    I agree that your waiving consideration of this provision 
of H.R. 2115 does not waive your Committee's jurisdiction over 
the bill. I also acknowledge your right to seek conferees on 
any provisions that are under your Committee's jurisdiction 
during any House-Senate conference on H.R. 2115 or similar 
legislation, and will support your request for conferees on 
such provisions.
    As you request, you letter and this response will be 
included in the Committee report on the legislation.
    Thank you for your cooperation in moving this important 
legislation to the House Floor.
            Sincerely,
                                                 Don Young,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                          Committee on Energy and Commerce,
                                      Washington, DC, June 6, 2003.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Rayburn House Office Building, Washington, DC.
    Dear Chairman Young: I am writing with regard to H.R. 2115, 
the flight 100--Century of Aviation Reauthorization Act, which 
was ordered reported by the Committee on Transportation and 
Infrastructure on May 21, 2003.
    I recognize your desire to bring this legislation before 
the House in an expeditious manner. Accordingly, I will not 
exercise my Committee's right to a referral. By agreeing to 
waive its consideration of the bill, however, the Energy and 
Commerce Committee does not waive its jurisdiction over H.R. 
2115. In addition, the Energy and Commerce Committee reserves 
its right to seek conferees on any provisions of the bill that 
are within its jurisdiction during any House-Senate conference 
that may be convened on this legislation. I ask for your 
commitment to support any request by the Energy and Commerce 
Committee for conferees on H.R. 2115 or similar legislation.
    I request that you include this letter as part of the 
Committee's Report on H.R. 2115 and in the Record during 
consideration of the legislation on the House floor. Thank you 
for your attention to these matters.
            Sincerely,
                                       W.J. ``Bill'' Tauzin
                                                          Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                      Washington, DC, June 6, 2003.
Hon. W. J. (Billy) Tauzin,
Chairman, Committee on Energy and Commerce, Rayburn Building, 
        Washington, DC.
    Dear Chairman: Thank you for your letter of June 6, 2003 
regarding H.R. 2115, the Flight 100--Century of Aviation Act, 
and for your willingness to waive consideration of provisions 
in the bill that falls within your Committee's jurisdiction 
under House Rules.
    I agree that your waiving consideration of these provisions 
of H.R. 2115 does not waive your Committee's jurisdiction over 
the bill. I also acknowledge your right to seek conferees on 
any provisions that are under your Committee's jurisdiction 
during any House-Senate conference on H.R. 2115 or similar 
legislation, and will support your request for conferees on 
such provisions.
    As you request, your letter and this response will be 
included in the Committee report on the legislation and in the 
Congressional Record.
    Thank you for your cooperation in moving this important 
legislation to the House floor.
            Sincerely,
                                                 Don Young,
                                                          Chairman.
                                ------                                


         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *



SUBTITLE I--DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *


CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *



Sec. 106. Federal Aviation Administration

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Authority of the Secretary and the Administrator.--
          (1)  * * *
          (2) Authority of the administrator.--The 
        Administrator--
                  (A) is the final authority for carrying out 
                all functions, powers, and duties of the 
                Administration relating to--
                          (i)  * * *
                          (ii) the acquisition and maintenance 
                        of property, services, and equipment of 
                        the Administration;

           *       *       *       *       *       *       *

  [(k) Authorization of Appropriations for Operations.--
          [(1) In general.--There is authorized to be 
        appropriated to the Secretary of Transportation for 
        operations of the Administration--
                  [(A) such sums as may be necessary for fiscal 
                year 2000;
                  [(B) $6,592,235,000 for fiscal year 2001;
                  [(C) $6,886,000,000 for fiscal year 2002; and
                  [(D) $7,357,000,000 for fiscal year 2003.
        Such sums shall remain available until expended.
          [(2) Authorized expenditures.--Out of amounts 
        appropriated under paragraph (1), the following 
        expenditures are authorized:
                  [(A) $450,000 for each of fiscal years 2000 
                through 2003 for wildlife hazard mitigation 
                measures and management of the wildlife strike 
                database of the Federal Aviation 
                Administration.
                  [(B) $9,100,000 for the 3-fiscal-year period 
                beginning with fiscal year 2001 to support a 
                university consortium established to provide an 
                air safety and security management certificate 
                program, working cooperatively with the Federal 
                Aviation Administration and United States air 
                carriers, except that funds under this 
                subparagraph--
                          [(i) may not be used for the 
                        construction of a building or other 
                        facility; and
                          [(ii) may only be awarded on the 
                        basis of open competition.
                  [(C) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to support 
                infrastructure systems development for both 
                general aviation and the vertical flight 
                industry.
                  [(D) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to establish helicopter 
                approach procedures using current technologies 
                (such as the Global Positioning System) to 
                support all-weather, emergency medical service 
                for trauma patients.
                  [(E) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to revise existing 
                terminal and en route procedures and instrument 
                flight rules to facilitate the takeoff, flight, 
                and landing of tiltrotor aircraft and to 
                improve the national airspace system by 
                separating such aircraft from congested flight 
                paths of fixed-wing aircraft.
                  [(F) $3,300,000 for fiscal year 2000 and 
                $3,000,000 for each of fiscal years 2001 
                through 2003 to implement the 1998 airport 
                surface operations safety action plan of the 
                Federal Aviation Administration.
                  [(G) $9,100,000 for fiscal year 2001 to 
                support air safety efforts through payment of 
                United States membership obligations in the 
                International Civil Aviation Organization, to 
                be paid as soon as practicable.
                  [(H) Such sums as may be necessary for fiscal 
                years 2000 through 2003 for the Secretary to 
                hire additional inspectors in order to enhance 
                air cargo security programs.
                  [(I) Such sums as may be necessary for fiscal 
                years 2000 through 2003 to develop and improve 
                training programs (including model training 
                programs and curriculum) for security screening 
                personnel at airports that will be used by 
                airlines to meet regulatory requirements 
                relating to the training and testing of such 
                personnel.]
  (k) Authorization of Appropriations.--
          (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.
          (2) Operation of center for management and 
        development.--Out of amounts appropriated under 
        paragraph (1), such sums as may be necessary may be 
        expended by the Center for Management Development of 
        the Federal Aviation Administration to operate at least 
        200 courses each year and to support associated student 
        travel for both residential and field courses.
          (3) Air traffic management system.--Out of amounts 
        appropriated under paragraph (1), such sums as may be 
        necessary may be expended by the Federal Aviation 
        Administration for the establishment and operation of a 
        new office to develop, in coordination with the 
        Department of Defense, the National Aeronautics and 
        Space Administration, and the Department of Homeland 
        Security, the next generation air traffic management 
        system and a transition plan for the implementation of 
        that system. The office shall be known as the ``Next 
        Generation Air Transportation System Joint Program 
        Office''.
          (4) Helicopter and tiltrotor procedures.--Out of 
        amounts appropriated under paragraph (1), such sums as 
        may be necessary may be expended by the Federal 
        Aviation Administration for the establishment of 
        helicopter and tiltrotor approach and departure 
        procedures using advanced technologies, such as the 
        Global Positioning System and automatic dependent 
        surveillance, to permit operations in adverse weather 
        conditions to meet the needs of air ambulance services.
          (5) Additional air traffic controllers.--Out of 
        amounts appropriated under paragraph (1), such sums as 
        may be necessary may be expended to hire additional air 
        traffic controllers in order to meet increasing air 
        traffic demands and to address the anticipated increase 
        in the retirement of experienced air traffic 
        controllers.
          (6) Completion of alaska aviation safety project.--
        Out of amounts appropriated under paragraph (1), 
        $6,000,000 may be expended for the completion of the 
        Alaska aviation safety project with respect to the 3 
        dimensional mapping of Alaska's main aviation 
        corridors.
          (7) Aviation safety reporting system.--Out of amounts 
        appropriated under paragraph (1), $3,400,000 may be 
        expended on the Aviation Safety Reporting System.

           *       *       *       *       *       *       *

  (p) Management Advisory Council and Air Traffic Services 
Board.--
          (1)  * * *
          (2) Membership.--The Council shall [consist of 18 
        members, who] consist of 13 members, who shall consist 
        of--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) 10 members representing aviation 
                interests, appointed by--
                          (i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate, except that 
                        initial appointments made after May 1, 
                        2003, shall be made by the Secretary of 
                        Transportation; and
                          (ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation[;]; and
                  (D) 1 member appointed, from among 
                individuals who are the leaders of their 
                respective unions of air traffic control system 
                [employees, by--
                          [(i) in the case of initial 
                        appointments to the Council, the 
                        President by and with the advice and 
                        consent of the Senate; and
                          [(ii) in the case of subsequent 
                        appointments to the Council, the 
                        Secretary of Transportation; and
                  [(E) 5 members appointed by the Secretary 
                after consultation with the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives and the Committee on 
                Commerce, Science, and Transportation of the 
                Senate.] employees, by the Secretary of 
                Transportation.
          (3) Qualifications.--
                  [(A) No federal officer or employee.--]No 
                member appointed under paragraph (2)(C) [or 
                (2)(E)] or to the Air Traffic Services Board 
                may serve as an officer or employee of the 
                United States Government while serving as a 
                member of the Council.
                  [(B) Air traffic services subcommittee.--
                Members appointed under paragraph (2)(E) 
                shall--
                          [(i) have a fiduciary responsibility 
                        to represent the public interest;
                          [(ii) be citizens of the United 
                        States; and
                          [(iii) be appointed without regard to 
                        political affiliation and solely on the 
                        basis of their professional experience 
                        and expertise in one or more of the 
                        following areas:
                                  [(I) Management of large 
                                service organizations.
                                  [(II) Customer service.
                                  [(III) Management of large 
                                procurements.
                                  [(IV) Information and 
                                communications technology.
                                  [(V) Organizational 
                                development.
                                  [(VI) Labor relations.
                At least one of such members should have a 
                background in managing large organizations 
                successfully. In the aggregate, such members 
                should collectively bring to bear expertise in 
                all of the areas described in subclauses (I) 
                through (VI).
                  [(C) Prohibitions on members of 
                subcommittee.--No member appointed under 
                paragraph (2)(E) 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.]
          (4) Functions.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) Access to documents and staff.--The 
                Administration may give the Council or Air 
                Traffic Services Board appropriate access to 
                relevant documents and personnel of the 
                Administration, and the Administrator shall 
                make available, consistent with the authority 
                to withhold commercial and other proprietary 
                information under section 552 of title 5 
                (commonly known as the ``Freedom of Information 
                Act''), cost data associated with the 
                acquisition and operation of air traffic 
                service systems. Any member of the Council or 
                Air Traffic Services Board who receives 
                commercial or other proprietary data from the 
                Administrator shall be subject to the 
                provisions of section 1905 of title 18, 
                pertaining to unauthorized disclosure of such 
                information.
          (5) Federal advisory committee act not to apply.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) does not 
        apply to the Council, the Air Traffic Services Board, 
        or such aviation rulemaking committees as the 
        Administrator shall designate.
          (6) Administrative matters.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) Terms for air traffic services 
                [subcommittee] board members.--The [member] 
                members appointed [under paragraph (2)(E)] to 
                the Air Traffic Services Board shall be 
                appointed for a term of 5 years, except that 
                [of the members first appointed under paragraph 
                (2)(E)--
                          [(i) 2 members shall be appointed for 
                        a term of 3 years;
                          [(ii) 2 members shall be appointed 
                        for a term of 4 years; and
                          [(iii) 1 member shall be appointed 
                        for a term of 5 years.] the first 
                        members of the Board shall be the 
                        members of the Air Traffic Services 
                        Subcommittee of the Council on the day 
                        before the date of enactment of the 
                        Flight 100--Century of Aviation 
                        Reauthorization Act who shall serve as 
                        members of the Board until their 
                        respective terms as members of the 
                        Subcommittee would have ended under 
                        this subparagraph, as in effect on such 
                        day.
                  (D) Reappointment.--An individual may not be 
                appointed [under paragraph (2)(E)] to the Board 
                to more than two 5-year terms.
                  (E) Vacancy.--Any vacancy on the Council or 
                Board shall be filled in the same manner as the 
                original appointment, except that any vacancy 
                caused by a member appointed by the President 
                under paragraph (2)(C)(i) shall be filled by 
                the Secretary in accordance with paragraph 
                (2)(C)(ii). Any member appointed to fill a 
                vacancy occurring before the expiration of the 
                term for which the member's predecessor was 
                appointed shall be appointed for the remainder 
                of that term.
                  (F) Continuation in office.--A member of the 
                Council or Board whose term expires shall 
                continue to serve until the date on which the 
                member's successor takes office.
                  (G) Removal.--Any member of the Council 
                appointed under paragraph (2)(D) may be removed 
                for cause by the President or Secretary whoever 
                makes the appointment. Any member of the 
                [Council appointed under paragraph (2)(E)] 
                Board may be removed for cause by the 
                Secretary.
                  (H) Claims against members of [subcommittee] 
                board.--
                          (i) In general.--A member appointed 
                        [under paragraph (2)(E)] to the Board 
                        shall have no personal liability under 
                        Federal law with respect to any claim 
                        arising out of or resulting from an act 
                        or omission by such member within the 
                        scope of service as a member of the 
                        [Air Traffic Services Subcommittee] 
                        Board.

           *       *       *       *       *       *       *

                  (I) Ethical considerations.--
                          (i) Financial disclosure.--During the 
                        entire period that an individual 
                        [appointed under paragraph (2)(E) is] 
                        is serving as a member of the 
                        [Subcommittee] Board, such individual 
                        shall be treated as serving as an 
                        officer or employee referred to in 
                        section 101(f ) of the Ethics in 
                        Government Act of 1978 for purposes of 
                        title I of such Act; except that 
                        section 101(d) of such Act shall apply 
                        without regard to the number of days of 
                        service in the position.
                          (ii) Restrictions on post-
                        employment.--For purposes of section 
                        207(c) of title 18, an individual 
                        [appointed under paragraph (2)(E)] who 
                        is a member of the Board shall be 
                        treated as an employee referred to in 
                        section 207(c)(2)(A)(i) of such title 
                        during the entire period the individual 
                        is a member of the [Subcommittee] 
                        Board; except that subsections 
                        (c)(2)(B) and (f) of section 207 of 
                        such title shall not apply.

           *       *       *       *       *       *       *

                  (K) Travel and per diem.--Each member of the 
                Council or Board shall be paid actual travel 
                expenses, and per diem in lieu of subsistence 
                expenses when away from his or her usual place 
                of residence, in accordance with section 5703 
                of title 5.
                  (L) Detail of personnel from the 
                administration.--The Administrator shall make 
                available to the Council or Board such staff, 
                information, and administrative services and 
                assistance as may reasonably be required to 
                enable the Council or Board to carry out its 
                responsibilities under this subsection.
          (7) Air traffic services [subcommittee] board.--
                  [(A) In general.--The Management Advisory 
                Council shall have an air traffic services 
                subcommittee (in this paragraph referred to as 
                the ``Subcommittee'') composed of the five 
                members appointed under paragraph (2)(E).]
                  (A) Establishment.--The Administrator shall 
                establish a board 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 
                Flight 100--Century of Aviation Reauthorization 
                Act, into such board. The board shall be known 
                as the Air Traffic Services Board (in this 
                subsection referred to as the ``Board'').
                  (B) Membership and qualifications.--Subject 
                to paragraph (6)(C), the Board 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.
                                  (V) Organizational 
                                development.
                                  (VI) Labor relations.
                  (C) Prohibitions on members of board.--No 
                member of the Board 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.
                  [(B)] (D) General responsibilities.--
                          (i) Oversight.--The [Subcommittee] 
                        Board shall oversee the administration, 
                        management, conduct, direction, and 
                        supervision of the air traffic control 
                        system.
                          (ii) Confidentiality.--The 
                        [Subcommittee] Board shall ensure that 
                        appropriate confidentiality is 
                        maintained in the exercise of its 
                        duties.
                  [(C)] (E) Specific responsibilities.--The 
                [Subcommittee] Board shall have the following 
                specific responsibilities:
                          (i)  * * *

           *       *       *       *       *       *       *

                          (v) Budget.--To--
                                  (I) review and [approve] make 
                                recommendations on the budget 
                                request of the Administration 
                                related to the air traffic 
                                control system prepared by the 
                                Administrator;
                                  (II) submit such budget 
                                [request] recommendations to 
                                the Secretary; and
                                  (III) [ensure that the budget 
                                request supports] base such 
                                budget recommendations on the 
                                annual and long-range strategic 
                                plans.
                [The Secretary shall submit the budget request 
                referred to in clause (v)(II) for any fiscal 
                year to the President who shall transmit such 
                request, without revision, to the Committees on 
                Transportation and Infrastructure and 
                Appropriations of the House of Representatives 
                and the Committees on Commerce, Science, and 
                Transportation and Appropriations of the 
                Senate, together with the President's annual 
                budget request for the Federal Aviation 
                Administration for such fiscal year.] The 
                Secretary shall submit the budget 
                recommendations referred to in clause (v) to 
                the President who shall transmit such 
                recommendations to the Committee on 
                Transportation and Infrastructure and the 
                Committee on Appropriations of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation and the Committee 
                on Appropriations of the Senate together with 
                the annual budget request of the Federal 
                Aviation Administration.
                  [(D) Subcommittee personnel matters.--
                          [(i) Compensation of members.--Each 
                        member of the Subcommittee shall be 
                        compensated at a rate of $25,000 per 
                        year.
                          [(ii) Compensation of chairperson.--
                        Notwithstanding clause (i), the 
                        chairperson of the Subcommittee shall 
                        be compensated at a rate of $40,000 per 
                        year.
                          [(iii) Staff.--The chairperson of the 
                        Subcommittee may appoint and terminate 
                        any personnel that may be necessary to 
                        enable the Subcommittee to perform its 
                        duties.
                          [(iv) Procurement of temporary and 
                        intermittent services.--The chairperson 
                        of the Subcommittee may procure 
                        temporary and intermittent services 
                        under section 3109(b) of title 5, 
                        United States Code.]
                  (F) Board personnel matters.--The Board may 
                appoint and terminate any personnel that may be 
                necessary to enable the Board to perform its 
                duties, and may procure temporary and 
                intermittent services under section 40122.
                  [(E)] (G) Administrative matters.--
                          [(i) Term of chair.--The members of 
                        the Subcommittee shall elect for a 2-
                        year term a chairperson from among the 
                        members of the Subcommittee.]
                          [(ii)] (i) Powers of chair.--Except 
                        as otherwise provided by a majority 
                        vote of the [Subcommittee] Board, the 
                        powers of the chairperson shall 
                        include--
                                  (I)  * * *

           *       *       *       *       *       *       *

                          [(iii)] (ii) Meetings.--The 
                        [Subcommittee] Board shall meet at 
                        least quarterly and at such other times 
                        as the chairperson determines 
                        appropriate.
                          [(iv)] (iii) Quorum.--Three members 
                        of the [Subcommittee] Board shall 
                        constitute a quorum. A majority of 
                        members present and voting shall be 
                        required for the Subcommittee to take 
                        action.
                  [(F)] (H) Reports.--
                          (i) Annual.--The [Subcommittee] Board 
                        shall each year report with respect to 
                        the conduct of its responsibilities 
                        under this title to the [Administrator, 
                        the Council] Secretary, the Committee 
                        on Transportation and Infrastructure of 
                        the House of Representatives, and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate.
                          (ii) Additional report.--If a 
                        determination by the [Subcommittee] 
                        Board under subparagraph [(B)(i)] 
                        (D)(i) that the organization and 
                        operation of the air traffic control 
                        system are not allowing the 
                        Administration to carry out its 
                        mission, the [Subcommittee] Board shall 
                        report such determination to the 
                        [Administrator, the Council] Secretary, 
                        the Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives, and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate.
                          (iii) Action of administrator on 
                        report.--Not later than 60 days after 
                        the date of a report of the 
                        [Subcommittee] Board under this 
                        subparagraph, the Administrator shall 
                        take action with respect to such 
                        report. If the Administrator overturns 
                        a recommendation of the [Subcommittee] 
                        Board, the Administrator shall report 
                        such action to the President, the 
                        Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives, and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate.
                          (iv) Comptroller general's report.--
                        Not later than April 30, 2003, the 
                        Comptroller General of the United 
                        States shall transmit to the Committee 
                        on Transportation and Infrastructure of 
                        the House of Representatives and the 
                        Committee on Commerce, Science, and 
                        Transportation of the Senate a report 
                        on the success of the [Subcommittee] 
                        Board in improving the performance of 
                        the air traffic control system.
                  (I) Authorization.--There are authorized to 
                be appropriated to the Board such sums as may 
                be necessary for the Board to carry out its 
                activities.

           *       *       *       *       *       *       *

  (r) Chief Operating Officer.--
          (1) In general.--
                  (A) Appointment.--There shall be a Chief 
                Operating Officer for the air traffic control 
                system to be appointed by the Administrator, 
                with the approval of the [Air Traffic Services 
                Subcommittee of the Aviation Management 
                Advisory Council] Air Traffic Services Board. 
                The Chief Operating Officer shall report 
                directly to the Administrator and shall be 
                subject to the authority of the Administrator.

           *       *       *       *       *       *       *

          (2) Compensation.--
                  (A) In general.--The Chief Operating Officer 
                shall be paid at an annual rate of basic pay to 
                be determined by the Administrator, with the 
                approval of the [Air Traffic Services 
                Subcommittee of the Aviation Management 
                Advisory Council] Air Traffic Services Board. 
                The annual rate may not exceed the annual 
                compensation paid under section 102 of title 3. 
                The Chief Operating Officer shall be subject to 
                the post-employment provisions of section 207 
                of title 18 as if the position of Chief 
                Operating Officer were described in section 
                207(c)(2)(A)(i) of that title.
                  (B) Bonus.--In addition to the annual rate of 
                basic pay authorized by subparagraph (A), the 
                Chief Operating Officer may receive a bonus for 
                any calendar year not to exceed 30 percent of 
                the annual rate of basic pay, based upon the 
                Administrator's evaluation of the Chief 
                Operating Officer's performance in relation to 
                the performance goals set forth in the 
                performance agreement described in paragraph 
                (3).
          (3) Annual performance agreement.--The Administrator 
        and the Chief Operating Officer, in consultation with 
        the [Air Traffic Control Subcommittee of the Aviation 
        Management Advisory Committee] Air Traffic Services 
        Board, shall enter into an annual performance agreement 
        that sets forth measurable organization and individual 
        goals for the Chief Operating Officer in key 
        operational areas. The agreement shall be subject to 
        review and renegotiation on an annual basis.
          (4) Annual performance report.--The Chief Operating 
        Officer shall prepare and transmit to the Secretary of 
        [Transportation and Congress] Transportation, the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives, and the Committee on 
        Commerce, Science, and Transportation of the Senate an 
        annual management report containing such information as 
        may be prescribed by the Secretary.
          (5) Responsibilities.--The Administrator may delegate 
        to the Chief Operating Officer, or any other authority 
        within the Administration responsibilities, including 
        the following:
                  (A) Strategic plans.--To [develop a] 
                implement the strategic plan of the 
                Administration for the air traffic control 
                system[, including the establishment of] in 
                order to further--
                          (i)  * * *

           *       *       *       *       *       *       *

                  (B) Operations.--To [review the operational 
                functions of the Administration,] oversee the 
                day-to-day operational functions of the 
                Administration for air traffic control, 
                including--
                          (i)  * * *
                          (ii) increasing productivity or 
                        implementing cost-saving measures; 
                        [and]
                          (iii) training and education[.]; and
                          (iv) the management of cost-
                        reimbursable contracts.
                  (C) Budget.--To--
                          (i) develop a budget request of the 
                        Administration related to the air 
                        traffic control system [prepared by the 
                        Administrator];
                          (ii) submit such budget request to 
                        the Administrator [and the Secretary of 
                        Transportation] and the Board; and
                          (iii) ensure that the budget request 
                        supports the agency's annual and long-
                        range strategic plans [developed under 
                        subparagraph (A) of this subsection.] 
                        for air traffic control services.
  (s) Small Business Ombudsman.--
          (1) Establishment.--There shall be in the 
        Administration a Small Business Ombudsman.
          (2) General duties and responsibilities.--The 
        Ombudsman shall--
                  (A) be appointed by the Administrator;
                  (B) serve as a liaison with small businesses 
                in the aviation industry;
                  (C) be consulted when the Administrator 
                proposes regulations that may affect small 
                businesses in the aviation industry;
                  (D) provide assistance to small businesses in 
                resolving disputes with the Administration; and
                  (E) report directly to the Administrator.

           *       *       *       *       *       *       *


CHAPTER 3--GENERAL DUTIES AND POWERS

           *       *       *       *       *       *       *


SUBCHAPTER II--ADMINISTRATIVE

           *       *       *       *       *       *       *


Sec. 329. Transportation information

  (a)  * * *
  (b) The Secretary shall--
          (1) collect and disseminate information on civil 
        aeronautics (other than that collected and disseminated 
        by the National Transportation Safety Board under 
        chapter 11 of this title) including at a minimum, 
        information on (A) the origin and destination of 
        passengers in interstate air transportation (as that 
        term is used in part A of subtitle VII of this title), 
        and (B) the number of passengers traveling by air 
        between any two points in interstate air 
        transportation; [except that in no case shall the 
        Secretary require an air carrier to provide information 
        on the number of passengers or the amount of cargo on a 
        specific flight if the flight and the flight number 
        under which such flight operates are used solely for 
        interstate air transportation and are not used for 
        providing essential air transportation under subchapter 
        II of chapter 417 of this title;]

           *       *       *       *       *       *       *

  (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 the Secretary of Transportation in 
        the publication of data under paragraph (1), the 
        Secretary of Homeland Security shall submit monthly to 
        the Secretary of Transportation a report on the number 
        of complaints about security screening received by the 
        Secretary of Homeland Security.

           *       *       *       *       *       *       *


SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *


                    PART A--AIR COMMERCE AND SAFETY

                           SUBPART I--GENERAL

                    CHAPTER 401--GENERAL PROVISIONS

Sec.
40101.  Policy.
     * * * * * * *
40129.  Collaborative decisionmaking pilot program.
     * * * * * * *

Sec. 40102. Definitions

  (a) General Definitions.--In this part--
          (1)  * * *

           *       *       *       *       *       *       *

          (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.
          [(29)] (30) ``mail'' means United States mail and 
        foreign transit mail.
          (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.
          [(30)] (32) ``navigable airspace'' means airspace 
        above the minimum altitudes of flight prescribed by 
        regulations under this subpart and subpart III of this 
        part, including airspace needed to ensure safety in the 
        takeoff and landing of aircraft.
          [(31)] (33) ``navigate aircraft'' and ``navigation of 
        aircraft'' include piloting aircraft.
          (34) ``nonhub airport'' means a commercial service 
        airport (as defined in section 47102) that has less 
        than 0.05 percent of the passenger boardings.
          [(32)] (35) ``operate aircraft'' and ``operation of 
        aircraft'' mean using aircraft for the purposes of air 
        navigation, including--
                  (A)  * * *

           *       *       *       *       *       *       *

          (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.
          [(33)] (37) ``person'', in addition to its meaning 
        under section 1 of title 1, includes a governmental 
        authority and a trustee, receiver, assignee, and other 
        similar representative.
          [(34)] (38) ``predatory'' means a practice that 
        violates the antitrust laws as defined in the first 
        section of the Clayton Act (15 U.S.C. 12).
          [(35)] (39) ``price'' means a rate, fare, or charge.
          [(36)] (40) ``propeller'' includes a part, 
        appurtenance, and accessory of a propeller.
          [(37)] (41) ``public aircraft'' means any of the 
        following:
                  (A)  * * *

           *       *       *       *       *       *       *

          (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.
          [(38)] (43) ``spare part'' means an accessory, 
        appurtenance, or part of an aircraft (except an 
        aircraft engine or propeller), aircraft engine (except 
        a propeller), propeller, or appliance, that is to be 
        installed at a later time in an aircraft, aircraft 
        engine, propeller, or appliance.
          [(39)] (44) ``State authority'' means an authority of 
        a State designated under State law--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(40)] (45) ``ticket agent'' means a person (except 
        an air carrier, a foreign air carrier, or an employee 
        of an air carrier or foreign air carrier) that as a 
        principal or agent sells, offers for sale, negotiates 
        for, or holds itself out as selling, providing, or 
        arranging for, air transportation.
          [(41)] (46) ``United States'' means the States of the 
        United States, the District of Columbia, and the 
        territories and possessions of the United States, 
        including the territorial sea and the overlying 
        airspace.
          [(42)] (47) ``air traffic control system'' means the 
        combination of elements used to safely and efficiently 
        monitor, direct, control, and guide aircraft in the 
        United States and United States-assigned airspace, 
        including--
                  (A)  * * *

           *       *       *       *       *       *       *


Sec. 40104. Promotion of civil aeronautics and safety of air commerce

  (a)  * * *

           *       *       *       *       *       *       *

  (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 47178.

           *       *       *       *       *       *       *


Sec. 40110. General procurement authority

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Duties and Powers.--When carrying out subsection (a) of 
this section, the Administrator of the Federal Aviation 
[Administration--
          [(1) is the senior procurement executive referred to 
        in section 16(3) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 414(3)) for approving the 
        justification for using procedures other than 
        competitive procedures, as required under section 
        303(f)(1)(B)(iii) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 
        253(f)(1)(B)(iii)); and
          [(2) may--] Administration may--
          [(A)] (1) notwithstanding section 1341(a)(1) of title 
        31, lease an interest in property for not more than 20 
        years;
          [(B)] (2) consider the reasonable probable future use 
        of the underlying land in making an award for a 
        condemnation of an interest in airspace;
          [(C)] (3) construct, or acquire an interest in, a 
        public building (as defined in section 3301(a) of title 
        40) only under a delegation of authority from the 
        Administrator of General Services;
                  [(D) use procedures other than competitive 
                procedures, as provided under section 303(c) of 
                the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253(c));]
          [(E)] (4) use procedures other than competitive 
        procedures only when the property or services needed by 
        the Administrator of the Federal Aviation 
        Administration are available from only one responsible 
        source or only from a limited number of responsible 
        sources and no other type of property or services will 
        satisfy the needs of the Administrator; and
          [(F)] (5) dispose of property under subsection (a)(2) 
        of this section, except for airport and airway property 
        and technical equipment used for the special purposes 
        of the Administration, only under sections 121, 123, 
        and 126 and chapter 5 of title 40.
  (d) Acquisition Management System.--
          (1) In general.--In consultation with such non-
        governmental experts in acquisition management systems 
        as the Administrator may employ, and notwithstanding 
        provisions of Federal acquisition law, the 
        Administrator shall develop and implement[, not later 
        than January 1, 1996,] an acquisition management system 
        for the Administration that addresses the unique needs 
        of the agency and, at a minimum, [provides for more 
        timely and cost-effective acquisitions of equipment and 
        materials.] 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.

           *       *       *       *       *       *       *

          [(4) Effective date.--This subsection shall take 
        effect on April 1, 1996.]
          (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.

           *       *       *       *       *       *       *


Sec. 40117. Passenger facility fees

  (a) Definitions.--In this section, the following definitions 
apply:
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Eligible airport-related project.--The term 
        ``eligible airport-related project'' means any of the 
        following projects:
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) [for costs] A project of terminal 
                development referred to in subparagraph (B) 
                incurred after August 1, 1986, at an airport 
                that did not have more than .25 percent of the 
                total annual passenger boardings in the United 
                States in the most recent calendar year for 
                which data is available and at which total 
                passenger boardings declined by at least 16 
                percent between calendar year 1989 and calendar 
                year 1997[;].

           *       *       *       *       *       *       *

                  (G) A project for the acquisition or 
                conversion of ground support equipment or 
                airport-owned vehicles used at a commercial 
                service airport with, or to, low-emission 
                technology (as defined in section 47102) or 
                cleaner burning conventional fuels, or the 
                retrofitting of such equipment or vehicles that 
                are powered by a diesel or gasoline engine with 
                emission control technologies certified or 
                verified by the Environmental Protection Agency 
                to reduce emissions, if the airport is located 
                in an air quality nonattainment 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 47138.
          (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.
          [(4)] (5) Passenger facility fee.--The term 
        ``passenger facility fee'' means a fee imposed under 
        this section.
          [(5)] (6) Passenger facility revenue.--The term 
        ``passenger facility revenue'' means revenue derived 
        from a passenger facility fee.
  (b) General Authority.--(1)  * * *

           *       *       *       *       *       *       *

          (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 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) Applications.--(1)  * * *
  (2) Before submitting an application, the eligible agency 
must provide reasonable notice to, and an opportunity for 
consultation with, air carriers and foreign air carriers 
operating at the airport. The Secretary shall prescribe 
regulations that define reasonable notice and contain at least 
the following requirements:
          (A)  * * *

           *       *       *       *       *       *       *

          (E) The agency will 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.
  (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 who may be affected, which 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 Web 
                site.
          (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).
  [(3)] (4) After receiving an application, the Secretary 
[shall] may provide notice and an opportunity to air carriers, 
foreign air carriers, and other interested persons to comment 
on the application. The Secretary shall make a final decision 
on the application not later than 120 days after receiving it.

           *       *       *       *       *       *       *

  (e) Limitations on Imposing Fees.--(1)  * * *
  (2) A passenger facility fee may not be collected from a 
passenger--
          (A)  * * *

           *       *       *       *       *       *       *

          (C) enplaning at an airport if the passenger did not 
        pay for the air transportation which resulted in such 
        enplanement, including any case in which the passenger 
        obtained the ticket for the air transportation with a 
        frequent flier award coupon without monetary 
        payment[.];
          (D) on flights, including flight segments, between 2 
        or more points in Hawaii; [and]
          (E) in Alaska aboard an aircraft having a seating 
        capacity of less than 60 passengers[.]; and
          (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.

           *       *       *       *       *       *       *

  (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. This 
        shall include--
                  (A) information that the Secretary may 
                require by regulation on each project for which 
                authority to impose a passenger facility fee is 
                sought;
                  (B) the amount of revenue from passenger 
                facility fees that is proposed to be collected 
                for each project; and
                  (C) the level of the passenger facility fee 
                that is proposed.
          (4) Acknowledgement of receipt and indication of 
        objection.--The Secretary shall acknowledge receipt of 
        the notice and indicate any objection to the imposition 
        of a passenger facility fee under this subsection for 
        any project identified in the notice within 30 days 
        after receipt of the eligible agency's notice.
          (5) Authority to impose fee.--Unless the Secretary 
        objects within 30 days after receipt of the eligible 
        agency's notice, the eligible agency is authorized to 
        impose a passenger facility fee in accordance with the 
        terms of its notice under this subsection.
          (6) Deadline.--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 not be in effect 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 of the Secretary issued under section 46110.
  (m) Financial Management of Fees.--
          (1) Handling of fees.--
                  (A) Placement of fees in escrow account.--
                Subject to subparagraph (B), passenger facility 
                revenue held by an air carrier or any of its 
                agents shall be segregated from the carrier's 
                cash and other assets and placed in an escrow 
                account for the benefit of the eligible 
                agencies entitled to such revenue.
                  (B) Alternative method of compliance.--
                Instead of placing amounts in an escrow account 
                under subparagraph (A), an air carrier may 
                provide to the eligible agency a letter of 
                credit, bond, or other form of adequate and 
                immediately available security in an amount 
                equal to estimated remittable passenger 
                facility fees for 180 days, to be assessed 
                against later audit, upon which security the 
                eligible agency shall be entitled to draw 
                automatically, without necessity of any further 
                legal or judicial action to effectuate 
                foreclosure.
          (2) Trust fund status.--If an air carrier or its 
        agent commingles 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.--An 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.--An 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.--An 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.

Sec. 40118. Government-financed air transportation

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Prohibition of Certification or Contract Clause.--(1)  * 
* *
  (2) In paragraph (1), the term ``commercial item'' has the 
meaning given such term in section 4(12) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(12)), except that 
it shall not include a contract for the transportation by air 
of passengers.

           *       *       *       *       *       *       *


Sec. 40128. Overflights of national parks

  (a) In General.--
          (1) General requirements.--A commercial air tour 
        operator may not conduct commercial air tour operations 
        over a national park or tribal lands, as defined by 
        this section, except--
                  (A) in accordance with this section;
                  (B) in accordance with conditions and 
                limitations prescribed for that operator by the 
                Administrator; and
                  (C) in accordance with any applicable air 
                tour management plan for the park or tribal 
                lands.

           *       *       *       *       *       *       *

  (b) Air Tour Management Plans.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Contents.--An air tour management plan for a 
        national park--
                  (A) may prohibit commercial air tour 
                operations over a national park in whole or in 
                part;
                  (B) may establish conditions for the conduct 
                of commercial air tour operations over a 
                national park, including commercial air tour 
                routes, maximum or minimum altitudes, time-of-
                day restrictions, restrictions for particular 
                events, maximum number of flights per unit of 
                time, intrusions on privacy on tribal lands, 
                and mitigation of noise, visual, or other 
                impacts;
                  (C) shall apply to all commercial air tour 
                operations over a national park within \1/2\ 
                mile outside the boundary of a national park;
                  (D) shall include incentives (such as 
                preferred commercial air tour routes and 
                altitudes, relief from caps and curfews) for 
                the adoption of quiet aircraft technology by 
                commercial air tour operators conducting 
                commercial air tour operations [at the park] 
                over a national park;
                  (E) shall provide for the initial allocation 
                of opportunities to conduct commercial air tour 
                operations over a national park if the plan 
                includes a limitation on the number of 
                commercial air tour operations for any time 
                period; and

           *       *       *       *       *       *       *

  (c) Interim Operating Authority.--
          (1)  * * *
          (2) Requirements and limitations.--Interim operating 
        authority granted under this subsection--
                  (A) shall provide annual authorization only 
                for the greater of--
                          (i) the number of flights used by the 
                        operator to provide the commercial air 
                        tour operations over a national park 
                        within the 12-month period prior to the 
                        date of the enactment of this section; 
                        or

           *       *       *       *       *       *       *

                  (B) may not provide for an increase in the 
                number of commercial air tour operations over a 
                national park conducted during any time period 
                by the commercial air tour operator above the 
                number that the air tour operator was 
                originally granted unless such an increase is 
                agreed to by the Administrator and the 
                Director;

           *       *       *       *       *       *       *

  (f ) Definitions.--In this section, the following definitions 
apply:
          (1) Commercial air tour operator.--The term 
        ``commercial air tour operator'' means any person who 
        conducts a commercial air tour operation over a 
        national park.

           *       *       *       *       *       *       *

          (4) Commercial air tour operation over a national 
        park.--
                  (A) In general.--The term ``[commercial air 
                tour operation] commercial air tour operation 
                over a national park'' means any flight, 
                conducted for compensation or hire in a powered 
                aircraft where a purpose of the flight is 
                sightseeing over a national park, within \1/2\ 
                mile outside the boundary of any national 
                [park, or over tribal lands,] park (except the 
                Grand Canyon National Park), or over tribal 
                lands (except those within or abutting the 
                Grand Canyon National Park), during which the 
                aircraft flies--
                          (i)  * * *

           *       *       *       *       *       *       *

                  (B) Factors to consider.--In making a 
                determination of whether a flight is a 
                commercial air tour operation over a national 
                park for purposes of this section, the 
                Administrator may consider--
                          (i)  * * *

           *       *       *       *       *       *       *


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 shall issue 
        guidelines concerning the pilot program. Such 
        guidelines, at a minimum, shall define 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 that 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.
  (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 3 airports to 
participate in the pilot program from among the most capacity-
constrained airports in the country 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 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 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) 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 
        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.
  (i) Extension of Pilot Program.--At the end of the 2-year 
period for which the pilot program is authorized, the 
Administrator 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 (h) that the pilot program has facilitated more 
effective use of air traffic capacity and if the Secretary 
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.

           *       *       *       *       *       *       *


                    SUBPART II--ECONOMIC REGULATION

CHAPTER 411--AIR CARRIER CERTIFICATES

           *       *       *       *       *       *       *


Sec. 41106. Airlift service

  (a)  * * *
  (b) Transportation Between the United States and Foreign 
Locations.--Except as provided in subsection (d), the 
transportation of passengers or property by transport category 
aircraft between a place in the United States and a place 
outside the United States obtained by the Secretary of Defense 
or the Secretary of a military department, or by a person that 
has contracted with the Secretary of Defense or the Secretary 
of a military department, through a contract for airlift 
service shall be provided by an air carrier referred to in 
subsection (a).

           *       *       *       *       *       *       *


Sec. 41113. Plans to address needs of families of passengers involved 
                    in aircraft accidents

  (a)  * * *
  (b) Contents of Plans.--A plan to be submitted by an air 
carrier under subsection (a) shall include, at a minimum, the 
following:
          (1)  * * *

           *       *       *       *       *       *       *

          (16) An assurance that the air carrier, in the event 
        that the air carrier volunteers assistance to United 
        States citizens within the United States with respect 
        to an aircraft accident outside the United States 
        involving major loss of life, [the air carrier] will 
        consult with the Board and the Department of State on 
        the provision of the assistance.
          (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.

           *       *       *       *       *       *       *


CHAPTER 413--FOREIGN AIR TRANSPORTATION

           *       *       *       *       *       *       *


Sec. 41313. Plans to address needs of families of passengers involved 
                    in foreign air carrier accidents

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Contents of Plans.--To the extent permitted by foreign 
law which was in effect on the date of the enactment of this 
section, a plan submitted by a foreign air carrier under 
subsection (b) shall include the following:
          (1)  * * *

           *       *       *       *       *       *       *

          (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.

           *       *       *       *       *       *       *


                  CHAPTER 417--OPERATIONS OF CARRIERS

                       SUBCHAPTER I--REQUIREMENTS

Sec.
41701.  Classification of air carriers.
     * * * * * * *
[41721.  Reports by carriers on incidents involving animals during air 
          transportation.]
41721.  Reports by carriers on incidents involving animals during air 
          transport.
41722.  Notice concerning aircraft assembly.
41723.  Special rule to promote air service to small communities.

               SUBCHAPTER II--SMALL COMMUNITY AIR SERVICE

41731.  Definitions.
     * * * * * * *
41745.  Community and regional choice program.
     * * * * * * *

SUBCHAPTER I--REQUIREMENTS

           *       *       *       *       *       *       *


Sec. 41718. Special rules for Ronald Reagan Washington National Airport

  (a) Beyond-Perimeter Exemptions.--The Secretary shall grant, 
by order, [12] 24 exemptions from the application of sections 
49104(a)(5), 49109, 49111(e), and 41714 of this title to air 
carriers to operate limited frequencies and aircraft on select 
routes between Ronald Reagan Washington National Airport and 
domestic hub airports and exemptions from the requirements of 
subparts K and S of part 93, Code of Federal Regulations, if 
the Secretary finds that the exemptions will--
          (1)  * * *

           *       *       *       *       *       *       *

  (b) Within-Perimeter Exemptions.--The Secretary shall grant, 
by order, [12] 20 exemptions from the requirements of sections 
49104(a)(5), 49111(e), and 41714 of this title and subparts K 
and S of part 93 of title 14, Code of Federal Regulations, to 
air carriers for providing air transportation to airports [that 
were designated as medium hub or smaller airports] within the 
perimeter established for civil aircraft operations at Ronald 
Reagan Washington National Airport under section 49109. The 
Secretary shall develop criteria for distributing slot 
exemptions for flights within the perimeter to such airports 
under this paragraph in a manner that promotes air 
transportation--
          (1)  * * *

           *       *       *       *       *       *       *

  (c) Limitations.--
          (1)  * * *
          (2) General exemptions.--The exemptions granted under 
        subsections (a) and (b) may not be for operations 
        between the hours of 10:00 p.m. and 7:00 a.m. and may 
        not increase the number of operations at Ronald Reagan 
        Washington National Airport in any 1-hour period during 
        the hours between 7:00 a.m. and 9:59 p.m. by more than 
        [two] 3 operations.
          (3) Allocation of within-perimeter exemptions.--Of 
        the exemptions granted under subsection (b)--
                  (A) [four] six shall be for air 
                transportation to small hub airports and nonhub 
                airports; [and]
                  (B) [eight] ten shall be for air 
                transportation to medium hub and smaller 
                airports[.]; and
                  (C) four shall be for air transportation to 
                airports without regard to their size.

           *       *       *       *       *       *       *

  [(d) Application Process.--
          [(1) Deadline for submission.--All requests for 
        exemptions under this section must be submitted to the 
        Secretary not later than the 30th day following the 
        date of the enactment of this subsection.
          [(2) Deadline for comments.--All comments with 
        respect to any request for an exemption under this 
        section must be submitted to the Secretary not later 
        than the 45th day following the date of the enactment 
        of this subsection.
          [(3) Deadline for final decision.--Not later than the 
        90th day following the date of the enactment of this 
        Act, the Secretary shall make a decision regarding 
        whether to approve or deny any request that is 
        submitted to the Secretary in accordance with paragraph 
        (1).]
  (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. 41719. Air service termination notice

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Definitions.--In this section, the following definitions 
apply:
          [(1) Nonhub airport.--The term ``nonhub airport'' has 
        the meaning that term has under section 41731(a)(4).]
          [(2)] (1) Part 121 air carrier.--The term ``part 121 
        air carrier'' means an air carrier to which part 121 of 
        title 14, Code of Federal Regulations, applies.
          [(3)] (2) Part 135 air carrier.--The term ``part 135 
        air carrier'' means an air carrier to which part 135 of 
        title 14, Code of Federal Regulations, applies.
          [(4)] (3) Regional/commuter carriers.--The term 
        ``regional/commuter carrier'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(5)] (4) Termination.--The term ``termination'' 
        means the cessation of all service at an airport by an 
        air carrier.

           *       *       *       *       *       *       *


Sec. 41722. Notice concerning aircraft assembly

  The Secretary of Transportation shall require, beginning 
after the last day of the 1-year 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.

Sec. 41723. Special rule to promote air service to small communities

  In order to promote air service to small communities, the 
Secretary of Transportation shall permit an operator of a 
turbine powered or multiengine piston powered aircraft with 10 
passenger seats or less (1) to provide air transportation 
between an airport that is a nonhub airport and another airport 
or between an airport that is not a commercial service airport 
and another airport, and (2) to sell individual seats on that 
aircraft at a negotiated price, if the aircraft is otherwise 
operated in accordance with parts 119 and 135 of title 14, Code 
of Federal Regulations, and the air transportation is otherwise 
provided in accordance with part 298 of such title 14.

               SUBCHAPTER II--SMALL COMMUNITY AIR SERVICE

Sec. 41731. Definitions

  (a) General.--In this subchapter--
          (1)  * * *

           *       *       *       *       *       *       *

          [(3) ``hub airport'' means an airport that each year 
        has at least .25 percent of the total annual boardings 
        in the United States.
          [(4) ``nonhub airport'' means an airport that each 
        year has less than .05 percent of the total annual 
        boardings in the United States.
          [(5) ``small hub airport'' means an airport that each 
        year has at least .05 percent, but less than .25 
        percent, of the total annual boardings in the United 
        States.]

           *       *       *       *       *       *       *


Sec. 41734. Ending, suspending, and reducing basic essential air 
                    service

  (a)  * * *

           *       *       *       *       *       *       *

  (i) Process for Discontinuing Certain Subsidies.--If the 
Secretary determines that no subsidy will be provided to a 
carrier to provide essential air service to an eligible place 
because the eligible place does not meet the requirements of 
section 332 of the Department of Transportation and Related 
Agencies Appropriations Act, 2000 (49 U.S.C. 41731 note; 113 
Stat. 1022), the Secretary shall notify the affected community 
that the subsidy will cease but shall continue to provide the 
subsidy for 90 days after providing the notice to the 
community.

           *       *       *       *       *       *       *


Sec. 41737. Compensation guidelines, limitations, and claims

  (a) Compensation Guidelines.--(1)  * * *
  (2) Promotional amounts described in paragraph (1)(B) of this 
subsection shall be a special, segregated element of the 
compensation provided to a carrier under this subchapter or may 
be paid directly to the unit of local government having 
jurisdiction over the eligible place served by the air carrier.
          (3) Payment of cost by local government.--
                  (A) General requirement.--The guidelines may 
                require a unit of local government having 
                jurisdiction over an eligible place that is 
                less than 170 miles from a medium or large hub 
                or less than 75 miles from a small hub or a 
                State within the boundaries of which the 
                eligible place is located to pay 2.5 percent in 
                fiscal year 2005, 5 percent in fiscal year 
                2006, 7.5 percent in fiscal year 2007, and 10 
                percent in fiscal year 2008 of the amount of 
                compensation payable under this subchapter for 
                air transportation with respect to the eligible 
                place to ensure the continuation of that air 
                transportation.
                  (B) Waiver.--The Secretary may waive the 
                requirement, or reduce the amount, of a payment 
                from a unit of local government under 
                subparagraph (A) if the Secretary finds that--
                          (i) the unit of local government 
                        lacks the ability to pay; and
                          (ii) the loss of essential air 
                        service to the eligible place would 
                        have an adverse effect on the eligible 
                        place's access to the national air 
                        transportation system.
                  (C) Determination of mileage.--In determining 
                the mileage between the eligible place and a 
                hub under this paragraph, the Secretary shall 
                use the most commonly used highway route 
                between the eligible place and the hub.

           *       *       *       *       *       *       *

  (d) Authority To Make Agreements and Incur Obligations.--
[(1)] The Secretary may make agreements and incur obligations 
from the Airport and Airway Trust Fund established under 
section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502) to pay compensation under this subchapter. An agreement 
by the Secretary under this subsection is a contractual 
obligation of the Government to pay the Government's share of 
the compensation.
  [(2) Not more than $38,600,000 is available to the Secretary 
out of the Fund for each of the fiscal years ending September 
30, 1993-1998, to incur obligations under this section. Amounts 
made available under this section remain available until 
expended.]

           *       *       *       *       *       *       *


Sec. 41740. Joint proposals

  The Secretary of Transportation shall encourage the 
submission of joint proposals, including joint fares, by 2 or 
more air carriers for providing air service or air 
transportation under this subchapter through arrangements that 
maximize the service or transportation to and from major 
destinations beyond the hub.

           *       *       *       *       *       *       *


Sec. 41742. Essential air service authorization

  (a) In General.--
          (1)  * * *
          (2) Additional funds.--In addition to amounts 
        authorized under paragraph (1), there is authorized to 
        be appropriated [$15,000,000] $65,000,000 for each 
        fiscal year to carry out the essential air service 
        program under this subchapter.
          (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.

           *       *       *       *       *       *       *

  [(c) Special Rule for Fiscal Year 1997.--Notwithstanding 
subsections (a) and (b), in fiscal year 1997, amounts in excess 
of $75,000,000 that are collected in fees pursuant to section 
45301(a)(1) of this title shall be available for the essential 
air service program under this subchapter, in addition to 
amounts specifically provided for in appropriations Acts.]

Sec. 41743. Airports not receiving sufficient service

  (a) Small Community Air Service Development [Pilot] 
Program.--The Secretary of Transportation shall establish a 
[pilot] program that meets the requirements of this section for 
improving air carrier service to airports not receiving 
sufficient air carrier service.

           *       *       *       *       *       *       *

  (c) Criteria for Participation.--In selecting communities, or 
consortia of communities, for participation in the program 
established under subsection (a), the Secretary shall apply the 
following criteria:
          (1) Size.--For calendar year 1997, the airport 
        serving the community or consortium was not larger than 
        a small hub airport [(as that term is defined in 
        section 41731(a)(5))], and--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(3) State limit.--No more than four communities or 
        consortia of communities, or a combination thereof, may 
        be located in the same State.]
          [(4)] (3) Overall limit.--No more than 40 communities 
        or consortia of communities, or a combination thereof, 
        may be selected to participate in the program in each 
        year for which funds are appropriated for the program.
          [(5)] (4) Priorities.--The Secretary shall give 
        priority to communities or consortia of communities 
        where--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) the community or consortium has 
                established, or will establish, a public-
                private partnership to facilitate air carrier 
                service to the public; [and]
                  (D) the assistance will provide material 
                benefits to a broad segment of the travelling 
                public, including business, educational 
                institutions, and other enterprises, whose 
                access to the national air transportation 
                system is limited[.]; and
                  (E) the assistance can be used in the fiscal 
                year in which it is received.

           *       *       *       *       *       *       *

  (e) Authority To Make Agreements.--
          (1)  * * *
          (2) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary 
        $20,000,000 for fiscal year 2001 [and], $27,500,000 for 
        each of fiscal years 2002 and 2003, and $35,000,000 for 
        each of fiscal years 2004 through 2008 to carry out 
        this section. Such sums shall remain available until 
        expended.
  (f) Additional Action.--Under the [pilot] program established 
under subsection (a), the Secretary shall work with air 
carriers providing service to participating communities and 
major air carriers (as defined in section 41716(a)(2)) serving 
large hub airports [(as defined in section 41731(a)(3))] to 
facilitate joint-fare arrangements consistent with normal 
industry practice.

           *       *       *       *       *       *       *


Sec. 41744. Preservation of basic essential air service at single 
                    carrier dominated hub airports

  (a)  * * *
  (b) Essential Airport Facility Defined.--In this section, the 
term ``essential airport facility'' means a large hub airport 
[(as defined in section 41731)] in the contiguous 48 States at 
which one air carrier has more than 60 percent of the total 
annual enplanements at that airport.

Sec. 41745. Community and regional choice program

  (a) Establishment.--The Secretary of Transportation shall 
establish an alternate essential air service pilot program in 
accordance with the requirements of this section.
  (b) Compensation 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 pay compensation 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.
  (c) Use of Compensation.--A unit of local government or State 
receiving compensation for an eligible place under the program 
shall use the compensation for any of the following purposes:
          (1) To provide assistance to an air carrier to 
        provide scheduled air service to and from the eligible 
        place, without being subject to the requirements of 
        41732(b).
          (2) To provide assistance to an air carrier to 
        provide on-demand air taxi service to and from the 
        eligible place.
          (3) 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.
          (4) 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.
          (5) To purchase aircraft, or a fractional share in 
        aircraft, to provide transportation to and from the 
        eligible place.
          (6) To pay for other transportation or related 
        services that the Secretary may permit.
  (d) Fractionally Owned Aircraft.--Notwithstanding any other 
provision of law, only those operating rules that relate to an 
aircraft that is fractionally owned apply when an aircraft 
described in subsection (c)(5) is used to provide 
transportation described in subsection (c)(5).
  (e) Applications.--
          (1) In general.--A unit of local government or State 
        seeking to participate in the program for an eligible 
        place 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 
                required; and
                  (B) a description of how the compensation 
                will be used.
  (f) Participation Requirements.--
          (1) Eligible places.--An eligible place for which 
        compensation is received under the program in a fiscal 
        year shall not be eligible to receive in that fiscal 
        year the essential air service that it would otherwise 
        be entitled to under this subchapter.
          (2) Governmental entities.--A unit of local 
        government or State receiving compensation for an 
        eligible place under the program in a fiscal year shall 
        not be required to pay the local share described in 
        41737(a)(3) in such fiscal year.
  (g) Subsequent Participation.--A unit of local government 
participating in the program under this section in a fiscal 
year shall not be prohibited from participating in the basic 
essential air service program under this chapter in a 
subsequent fiscal year if such unit is otherwise eligible to 
participate in such program.
  (h) 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.

SUBCHAPTER III--REGIONAL AIR SERVICE INCENTIVE PROGRAM

           *       *       *       *       *       *       *


Sec. 41762. Definitions

  In this subchapter, the following definitions apply:
          (1)  * * *

           *       *       *       *       *       *       *

          [(11) Nonhub airport.--The term ``nonhub airport'' 
        means an airport that each year has less than .05 
        percent of the total annual boardings in the United 
        States.]
          [(12)] (11) Obligor.--The term ``obligor'' means a 
        party primarily liable for payment of the principal of 
        or interest on a Federal credit instrument, which party 
        may be a corporation, partnership, joint venture, 
        trust, or governmental entity, agency, or 
        instrumentality.
          [(13)] (12) Regional jet aircraft.--The term 
        ``regional jet aircraft'' means a civil aircraft--
                  (A) powered by jet propulsion; and
                  (B) designed to have a maximum passenger 
                seating capacity of not less than 30 nor more 
                than 75.
          [(14)] (13) Secured loan.--The term ``secured loan'' 
        means a direct loan funded by the Secretary in 
        connection with the financing of an aircraft purchase 
        under section 41763(b).
          [(15) Small hub airport.--The term ``small hub 
        airport'' means an airport that each year has at least 
        .05 percent, but less than .25 percent, of the total 
        annual boardings in the United States.]
          [(16)] (14) Underserved market.--The term 
        ``underserved market'' means a passenger air 
        transportation market (as defined by the Secretary) 
        that--
                  (A)  * * *

           *       *       *       *       *       *       *


Sec. 41766. Funding

  Of the amounts appropriated under section 106(k) for each of 
fiscal years 2001 through [2003] 2007, such sums as may be 
necessary may be used to carry out this subchapter, including 
administrative expenses.

           *       *       *       *       *       *       *


SUBPART III--SAFETY

           *       *       *       *       *       *       *


                         CHAPTER 443--INSURANCE

Sec.
44301.  Definitions.
     * * * * * * *
[44310.  Ending effective date.]
44310.  Vendors, agents, subcontractors, and manufacturers.
44311.  Termination date.
     * * * * * * *

Sec. 44302. General authority

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Extension of Policies.--
          (1) In general.--The Secretary shall extend through 
        August 31, 2004, and may extend [through December 31, 
        2004,] thereafter the termination date of any insurance 
        policy that the Department of Transportation issued to 
        an air carrier under subsection (a) and that is in 
        effect on the date of enactment of this subsection on 
        no less favorable terms to the air carrier than existed 
        on June 19, 2002; except that the Secretary shall amend 
        the insurance policy, subject to such terms and 
        conditions as the Secretary may prescribe, to add 
        coverage for losses or injuries to aircraft hulls, 
        passengers, and crew at the limits carried by air 
        carriers for such losses and injuries as of such date 
        of enactment and at an additional premium comparable to 
        the premium charged for third-party casualty coverage 
        under such policy.

           *       *       *       *       *       *       *


Sec. 44303. Coverage

  (a)  * * *
  (b) Air Carrier Liability for Third Party Claims Arising Out 
of Acts of Terrorism.--For acts of terrorism committed on or to 
an air carrier during the period beginning on September 22, 
2001, and ending on December 31, 2004, the Secretary may 
certify that the air carrier was a victim of an act of 
terrorism and in the Secretary's judgment, based on the 
Secretary's analysis and conclusions regarding the facts and 
circumstances of each case, shall not be responsible for losses 
suffered by third parties (as referred to in section 
205.5(b)(1) of title 14, Code of Federal Regulations) that 
exceed $100,000,000, in the aggregate, for all claims by such 
parties arising out of such act. If the Secretary so certifies, 
the air carrier shall not be liable for an amount that exceeds 
$100,000,000, in the aggregate, for all claims by such parties 
arising out of such act, and the Government shall be 
responsible for any liability above such amount. No punitive 
damages may be awarded against an air carrier (or the 
Government taking responsibility for an air carrier under this 
subsection) under a cause of action arising out of such act. 
The Secretary may extend the provisions of this subsection to 
the United States manufacturer (as defined in section 44310) of 
the aircraft of the air carrier involved.

           *       *       *       *       *       *       *


[Sec. 44310. Ending effective date

  [The authority of the Secretary of Transportation to provide 
insurance and reinsurance under this chapter is not effective 
after December 31, 2004.]

Sec. 44310. Vendors, agents, subcontractors, and manufacturers

  (a) In General.--The Secretary of Transportation may extend 
the application of any provision of this chapter to a loss by a 
vendor, agent, and subcontractor of an air carrier and a United 
States manufacturer of an aircraft used by an air carrier but 
only to the extent that the loss involved an aircraft of an air 
carrier.
  (b) United States Manufacturer Defined.--In this section, the 
term ``United States manufacturer'' means a manufacturer 
incorporated under the laws of a State of the United States and 
having its principal place of business in the United States.

Sec. 44311. Termination date

  Effective December 31, 2007, the authority of the Secretary 
of Transportation to provide insurance and reinsurance under 
this chapter shall be limited to--
          (1) the operation of an aircraft by an air carrier or 
        foreign air carrier in foreign air commerce or between 
        at least 2 points, all of which are outside the United 
        States; and
          (2) insurance obtained by a department, agency, or 
        instrumentality of the United States under section 
        44305.

           *       *       *       *       *       *       *


                     CHAPTER 447--SAFETY REGULATION

Sec.
44701.  General requirements.
     * * * * * * *
[44704.  Type certificates, production certificates, and airworthiness 
          certificates.]
44704.  Type certificates, production certificates, airworthiness 
          certificates, and design organization certificates.
     * * * * * * *
44727.  Runway safety areas.
44728.  Availability of maintenance information.
44729.  Flight attendant certification.
     * * * * * * *

Sec. 44702. Issuance of certificates

  (a) General Authority and Applications.--The Administrator of 
the Federal Aviation Administration may issue airman 
certificates, design organization certificates, type 
certificates, production certificates, airworthiness 
certificates, air carrier operating certificates, airport 
operating certificates, air agency certificates, and air 
navigation facility certificates under this chapter. An 
application for a certificate must--
          (1)  * * *

           *       *       *       *       *       *       *


[Sec. 44704. Type certificates, production certificates, and 
                    airworthiness certificates]

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

  (a) Type Certificates.--(1)  * * *

           *       *       *       *       *       *       *

  (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. A person 
may manufacture a new aircraft, aircraft engine, propeller, or 
appliance based on a type certificate only if the person is the 
holder of the type certificate or has permission from the 
holder.

           *       *       *       *       *       *       *

  (e) Certification of Products Manufactured in Foreign 
Nations.--In order to ensure safety, the Administrator shall 
spend at least the same amount of time and perform a no-less-
thorough review in certifying, or validating the certification 
of, an aircraft, aircraft engine, propeller, or appliance 
manufactured in a foreign nation as the regulatory authorities 
of that nation employ when the authorities certify, or validate 
the certification of, an aircraft, aircraft engine, propeller, 
or appliance manufactured in the United States.
  (f) 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.--On receiving an 
        application for a type certificate under subsection (a) 
        that is accompanied by a certification of compliance by 
        a design organization certificated under this 
        subsection, instead of conducting an independent 
        investigation under subsection (a), the Administrator 
        may issue the type certificate based on the 
        certification of compliance.
          (4) Public safety.--The Administrator shall include 
        in a design organization certificate issued under this 
        subsection terms required in the interest of safety.

           *       *       *       *       *       *       *


Sec. 44709. Amendments, modifications, suspensions, and revocations of 
                    certificates

  (a) Reinspection and Reexamination.--The Administrator of the 
Federal Aviation Administration may reinspect at any time a 
civil aircraft, aircraft engine, propeller, appliance, design 
organization, production certificate holder, air navigation 
facility, or air agency, or reexamine an airman holding a 
certificate issued under section 44703 of this title.

           *       *       *       *       *       *       *


Sec. 44711. Prohibitions and exemption

  (a) Prohibitions.--A person may not--
          (1)  * * *

           *       *       *       *       *       *       *

          (7) violate a term of an air [agency] agency, design 
        organization certificate, or production certificate or 
        a regulation prescribed or order issued under section 
        44701(a) or (b) or any of sections 44702-44716 of this 
        title related to the holder of the certificate;

           *       *       *       *       *       *       *


Sec. 44726. Denial and revocation of certificate for counterfeit parts 
                    violations

  (a) Denial of Certificate.--
          (1) In general.--Except as provided in paragraph (2) 
        of this subsection and subsection (e)(2), the 
        Administrator of the Federal Aviation Administration 
        may not issue a certificate under this chapter to any 
        person--
                  (A) convicted in a court of law of a 
                violation of a law of the United States 
                relating to the installation, production, 
                repair, or sale of a counterfeit or 
                fraudulently-represented aviation part or 
                material; [or]
                  (B) whose certificate is revoked under 
                subsection (b); or
                  [(B)] (C) subject to a controlling or 
                ownership interest of an individual [convicted 
                of such a violation.] described in subparagraph 
                (A) or (B).

           *       *       *       *       *       *       *


Sec. 44727. Runway safety areas

  An airport owner or operator 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.

Sec. 44728. Availability of maintenance information

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall continue in effect the requirement of 
section 21.50(b) of title 14, Code of Federal Regulations, that 
the holder of a design approval--
          (1) shall prepare and furnish at least one set of 
        complete instructions for continued airworthiness as 
        prescribed in such section to the owner of each type of 
        aircraft, aircraft engine, or propeller upon its 
        delivery or upon the issuance of the first standard 
        airworthiness certificate for the affected aircraft, 
        whichever occurs later; and
          (2) thereafter shall make the instructions, and any 
        changes thereto, available to any other person required 
        by parts 1 through 199 of title 14, Code of Federal 
        Regulations, to comply with any of the terms of the 
        instructions.
  (b) Definitions.--In this section, the following definitions 
apply:
          (1) Make available.--The term ``make available'' 
        means providing at a cost not to exceed the cost of 
        preparation and distribution.
          (2) Design approval.--The term ``design approval'' 
        means a type certificate, supplemental type 
        certificate, amended type certificate, parts 
        manufacturer approval, technical standard order 
        authorization, and any other action as determined by 
        the Administrator pursuant to subsection (c)(2).
          (3) Instructions for continued airworthiness.--The 
        term ``instructions for continued airworthiness'' means 
        any information (and any changes to such information) 
        considered essential to continued airworthiness that 
        sets forth the methods, techniques, and practices for 
        performing maintenance and alteration on civil 
        aircraft, aircraft engines, propellers, appliances or 
        any part installed thereon. Such information may 
        include maintenance, repair, and overhaul manuals, 
        standard practice manuals, service bulletins, service 
        letters, or similar documents issued by a design 
        approval holder.
  (c) Rulemaking.--The Administrator shall conduct a rulemaking 
proceeding for the following purposes:
          (1) To determine the meaning of the phrase 
        ``essential to continued airworthiness'' of the 
        applicable aircraft, aircraft engine, and propeller as 
        that term is used in parts 23 through 35 of title 14, 
        Code of Federal Regulations.
          (2) To determine if a design approval should include, 
        in addition to those approvals specified in subsection 
        (b)(2), any other activity in which persons are 
        required to have technical data approved by the 
        Administrator.
          (3) To revise existing rules to reflect the 
        definition of design approval holder in subsections 
        (b)(2) and (c)(2).
          (4) To determine if design approval holders that 
        prepared instructions for continued airworthiness or 
        maintenance manuals before January 29, 1981, should be 
        required to make the manuals available (including any 
        changes thereto) to any person required by parts 1 
        through 199 of title 14, Code of Federal Regulations, 
        to comply with any of the terms of those manuals.
          (5) To require design approval holders that--
                  (A) are operating an ongoing business 
                concern;
                  (B) were required to produce maintenance 
                manuals or instructions for continued 
                airworthiness under section 21.50(b) of title 
                14, Code of Federal Regulations; and
                  (C) have not done so,
        to prepare those documents and make them available as 
        required by this section not later than 1 year after 
        date on which the regulations are published.
          (6) To revise its rules to reflect the changes made 
        by this section.
  (d) Limitation on Statutory Construction.--Nothing is this 
section shall be construed as requiring the holder of a design 
approval to make available proprietary information unless it is 
deemed essential to continued airworthiness.

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) contain the name of the air carrier that employs 
        or will employ the certificate holder on the date that 
        the certificate is issued;
          (4) is similar in size and appearance to certificates 
        issued to airmen;
          (5) contain the airplane group for which the 
        certificate is issued; and
          (6) be issued not later than 30 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.

                 SUBPART IV--ENFORCEMENT AND PENALTIES

              CHAPTER 461--INVESTIGATIONS AND PROCEEDINGS

Sec.
46101.  Complaints and investigations.
     * * * * * * *
46111.  Certificate actions in response to a security threat.

           *       *       *       *       *       *       *


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, shall issue regulations to 
        establish procedures by which the Under Secretary, as 
        part of a hearing conducting under this section, may 
        substitute an unclassified summary of classified 
        evidence upon the approval of the administrative law 
        judge.
          (2) Approval and disapproval of summaries.--Under the 
        procedures, an administrative law judge shall--
                  (A) approve a summary if the judge finds that 
                it is sufficient to enable the certificate 
                holder to appeal an order issued under 
                subsection (a); or
                  (B) disapprove a summary if the judge finds 
                that it is not sufficient to enable the 
                certificate holder to appeal such an order.
          (3) Modifications.--If an administrative law judge 
        disapproves a summary under paragraph (2)(B), the judge 
        shall direct the Under Secretary to modify the summary 
        and resubmit the summary for approval.
          (4) Insufficient modifications.--If an administrative 
        law judge is unable to approve a modified summary, the 
        order issued under subsection (a) that is the subject 
        of the hearing shall be set aside unless the judge 
        finds that such a result--
                  (A) would likely cause serious and 
                irreparable harm to the national security; or
                  (B) would likely cause death or serious 
                bodily injury to any person.
          (5) Special procedures.--If an administrative law 
        judge makes a finding under subparagraph (A) or (B) of 
        paragraph (4), the hearing shall proceed without an 
        unclassified summary provided to the certificate 
        holder. In such a case, subject to procedures 
        established by regulation by the Under Secretary in 
        consultation with the Administrator, the administrative 
        law judge shall appoint a special attorney to assist 
        the accused by--
                  (A) reviewing in camera the classified 
                evidence; and
                  (B) challenging, through an in camera 
                proceeding, the veracity of the evidence 
                contained in the classified information.

                         CHAPTER 463--PENALTIES

Sec.
46301.  Civil penalties.
     * * * * * * *
46319.  Closure of an airport without providing sufficient notice.
     * * * * * * *

Sec. 46319. Closure of an airport without providing sufficient notice

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

           *       *       *       *       *       *       *


                 PART B--AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471--AIRPORT DEVELOPMENT

                    SUBCHAPTER I--AIRPORT IMPROVEMENT

Sec.
47101.  Policies.
     * * * * * * *
47138.  Emission credits for air quality projects.
47139.  Airport ground support equipment emissions retrofit pilot 
          program.
47140.  Compatible land use planning and projects by State and local 
          governments.
47141.  Prohibition on rent-free space requirements for Federal Aviation 
          Administration.
     * * * * * * *

              SUBCHAPTER III--AIRPORT PROJECT STREAMLINING

47171.  DOT as lead agency.
47172.  Categorical exclusions.
47173.  Access restrictions to ease construction.
47174.  Airport revenue to pay for mitigation.
47175.  Airport funding of FAA staff.
47176.  Authorization of appropriations.
47177.  Designation of aviation safety and aviation security projects 
          for priority environmental review.
47178.  Definitions.

SUBCHAPTER I--AIRPORT IMPROVEMENT

           *       *       *       *       *       *       *


Sec. 47102. Definitions

  In this subchapter--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A)  * * *
                  (B) acquiring for, or installing at, a 
                public-use airport--
                          (i)  * * *

           *       *       *       *       *       *       *

                          (x) replacement of baggage conveyor 
                        systems, and reconfiguration of 
                        terminal baggage areas, that the 
                        Secretary determines are necessary to 
                        install bulk explosive detection 
                        devices[.]; except that such activities 
                        shall be eligible for funding under 
                        this subchapter only using amounts 
                        apportioned under section 47114.

           *       *       *       *       *       *       *

                  [(J) in fiscal year 2002, any additional 
                security related activity required by law or by 
                the Secretary after September 11, 2001, and 
                before October 1, 2002.
                  [(K) in fiscal year 2002 with respect to 
                funds apportioned under section 47114 in fiscal 
                years 2001 and 2002, any activity, including 
                operational activities, of an airport that is 
                not a primary airport if that airport is 
                located within the confines of enhanced class B 
                airspace, as defined by Notice to Airmen FDC 1/
                0618 issued by the Federal Aviation 
                Administration and the activity was carried out 
                when any restriction in the Notice is in 
                effect.
                  [(L) in fiscal year 2002, payments for debt 
                service on indebtedness incurred to carry out a 
                project at an airport owned or controlled by 
                the sponsor or at a privately owned or operated 
                airport passenger terminal financed by 
                indebtedness incurred by the sponsor if the 
                Secretary determines that such payments are 
                necessary to prevent a default on the 
                indebtedness.]
                  (J) in the case of a nonhub airport or an 
                airport that is not a primary airport in fiscal 
                year 2004, direct costs associated with new, 
                additional, or revised security requirements 
                imposed on airport operators by law, 
                regulation, or order on or after September 11, 
                2001, if the Government's share is paid only 
                from amounts apportioned to a sponsor under 
                section 47114(c) or 47114(d)(3)(A).
                  (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 47138.
                  (L) converting vehicles and ground support 
                equipment owned by a commercial service airport 
                to low-emission technology or acquiring for use 
                at a commercial service airport vehicles and 
                ground support equipment that include low-
                emission technology 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 47138.

           *       *       *       *       *       *       *

          [(6) ``amount made available under section 48103 of 
        this title'' means the amount authorized for grants 
        under section 48103 of this title as reduced by any law 
        enacted after September 3, 1982.]
          (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).

           *       *       *       *       *       *       *

          (10) ``large hub airport'' means a commercial service 
        airport that has at least 1.0 percent of the passenger 
        boardings.
          (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.
          (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.
          [(10)] (14) ``passenger boardings''--
                  [(A) means revenue passenger boardings 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.]
                  (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.
          [(11)] (15) ``primary airport'' means a commercial 
        service airport the Secretary determines to have more 
        than 10,000 passenger boardings each year.
          [(12)] (16) ``project'' means a project, separate 
        projects included in one project grant application, or 
        all projects to be undertaken at an airport in a fiscal 
        year, to achieve airport development or airport 
        planning.
          [(13)] (17) ``project cost'' means a cost involved in 
        carrying out a project.
          [(14)] (18) ``project grant'' means a grant of money 
        the Secretary makes to a sponsor to carry out at least 
        one project.
          [(15)] (19) ``public agency'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(16)] (20) ``public airport'' means an airport used 
        or intended to be used for public purposes--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(17)] (21) ``public-use airport'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(18)] (22) ``reliever airport'' means an airport the 
        Secretary designates to relieve congestion at a 
        commercial service airport and to provide more general 
        aviation access to the overall community.
          (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.
          [(19)] (24) ``sponsor'' means--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(20)] (25) ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the 
        Virgin Islands, American Samoa, the Northern Mariana 
        Islands, the Trust Territory of the Pacific Islands, 
        and Guam.

           *       *       *       *       *       *       *


Sec. 47104. Project grant authority

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Expiration of Authority.--After September 30, [2003] 
2007, the Secretary may not incur obligations under subsection 
(b) of this section, except for obligations of amounts--
          (1)  * * *

           *       *       *       *       *       *       *


Sec. 47106. Project grant application approval conditioned on 
                    satisfaction of project requirements

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Environmental Requirements.--(1) The Secretary may 
approve an application under this subchapter for an airport 
development project involving the location of an airport or 
runway or a major runway extension--
          (A) only if the sponsor certifies to the Secretary 
        that--
                  (i)  * * *
                  (ii) the airport management board has voting 
                representation from the communities in which 
                the project is located or has advised the 
                communities that they have the right to 
                petition the Secretary about a proposed 
                project; and
          [(B) only if the chief executive officer of the State 
        in which the project will be located certifies in 
        writing to the Secretary that there is reasonable 
        assurance that the project will be located, designed, 
        constructed, and operated in compliance with applicable 
        air and water quality standards, except that the 
        Administrator of the Environmental Protection Agency 
        shall make the certification instead of the chief 
        executive officer if--
                  [(i) the State has not approved any 
                applicable State or local standards; and
                  [(ii) the Administrator has prescribed 
                applicable standards; and]
          [(C)] (B) if the application is found to have a 
        significant adverse effect on natural resources, 
        including fish and wildlife, natural, scenic, and 
        recreation assets, water and air quality, or another 
        factor affecting the environment, only after finding 
        that no possible and prudent alternative to the project 
        exists and that every reasonable step has been taken to 
        minimize the adverse effect.
  (2) The Secretary may approve an application under this 
subchapter for an airport development project that does not 
involve the location of an airport or runway, or a major runway 
extension, at an existing airport without requiring an 
environmental impact statement related to noise for the project 
if--
          (A) completing the project would allow operations at 
        the airport involving aircraft complying with the noise 
        standards prescribed for ``[stage 2] stage 3'' aircraft 
        in section 36.1 of title 14, Code of Federal 
        Regulations, to replace existing operations involving 
        aircraft that do not comply with those standards; and

           *       *       *       *       *       *       *

  [(4)(A) Notice of certification or of refusal to certify 
under paragraph (1)(B) of this subsection shall be provided to 
the Secretary not later than 60 days after the Secretary 
receives the application.
  [(B) The Secretary shall condition approval of the 
application on compliance with the applicable standards during 
construction and operation.]
  [(5)] (4) The Secretary may make a finding under paragraph 
(1)(C) of this subsection only after completely reviewing the 
matter. The review and finding must be a matter of public 
record.
  (d) Withholding Approval.--(1) The Secretary may withhold 
approval of an application under this subchapter for amounts 
apportioned under [section 47114(c) and (e) of this title] 
subsections (c), (d), and (e) of section 47114 for violating an 
assurance or requirement of this subchapter only if--
          (A)  * * *

           *       *       *       *       *       *       *

  (4) If the Secretary withholds a grant to an airport from the 
discretionary fund under section 47115 or from the small 
airport fund under section 47116 on the grounds that the 
sponsor has violated an assurance or requirement of this 
subchapter, the Secretary shall follow the procedures of this 
subsection.

           *       *       *       *       *       *       *

  (h) Runway Safety Areas.--The Secretary may approve an 
application under this chapter for a project grant to 
construct, reconstruct, repair, or improve a runway only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that the sponsor will undertake, to the maximum 
extent practical, improvement of the runway's safety area to 
meet the standards of the Federal Aviation Administration.

Sec. 47107. Project grant application approval conditioned on 
                    assurances about airport operations

  (a) General Written Assurances.--The Secretary of 
Transportation may approve a project grant application under 
this subchapter for an airport development project only if the 
Secretary receives written assurances, satisfactory to the 
Secretary, that--
          (1)  * * *

           *       *       *       *       *       *       *

          (19) the airport owner or operator will submit to the 
        Secretary and make available to the public an annual 
        report listing in detail--
                  (A)  * * *
                  (B) all services and property provided to 
                other units of government and the amount of 
                compensation received for provision of each 
                such service and property; [and]
          (20) the airport owner or operator will permit, to 
        the maximum extent practicable, intercity buses or 
        other modes of transportation to have access to the 
        airport, but the sponsor does not have any obligation 
        under this paragraph, or because of it, to fund special 
        facilities for intercity bus service or for other modes 
        of transportation[.]; and
          (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 (of not less than 50 years) that is subject 
        to such terms and conditions on the hangar as the 
        airport owner or operator may impose.

           *       *       *       *       *       *       *

  (c) Written Assurances on Acquiring Land.--(1)  * * *

           *       *       *       *       *       *       *

  (4) Notwithstanding paragraph (2)(A)(iii), an airport owner 
or operator may retain all or any portion of the proceeds from 
a land disposition described in that paragraph if the Secretary 
finds that the use of the land will be compatible with airport 
purposes and the proceeds retained will be used for airport 
development or to carry out a noise compatibility program under 
section 47504(c).

           *       *       *       *       *       *       *

  (l) Policies and Procedures To Ensure Enforcement Against 
Illegal Diversion of Airport Revenue.--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Statute of limitations.--In addition to the 
        statute of limitations specified in subsection (n)(7), 
        with respect to project grants made under this 
        chapter--
                  (A) any request by a sponsor or any other 
                governmental entity to any airport for 
                additional payments for services conducted off 
                of the airport or for reimbursement for capital 
                contributions or operating expenses shall be 
                filed not later than 6 years after the date on 
                which the expense is incurred; and

           *       *       *       *       *       *       *

  (m) Audit Certification.--
          (1) In general.--The Secretary of Transportation, 
        acting through the Administrator of the Federal 
        Aviation Administration, shall [promulgate regulations 
        that] include a provision in the compliance supplement 
        provisions to require a recipient of a project grant 
        (or any other recipient of Federal financial assistance 
        that is provided for an airport) to include as part of 
        an annual audit conducted under sections 7501 through 
        7505 of title 31, a review [and opinion of the review] 
        concerning the funding activities with respect to an 
        airport that is the subject of the project grant (or 
        other Federal financial assistance) and the sponsors, 
        owners, or operators (or other recipients) involved.

           *       *       *       *       *       *       *

          [(3) Requirements for audit report.--The report 
        submitted to the Secretary under this subsection shall 
        include a specific determination and opinion regarding 
        the appropriateness of the disposition of airport funds 
        paid or transferred to a sponsor.]

           *       *       *       *       *       *       *


Sec. 47108. Project grant agreements

  (a) Offer and Acceptance.--On approving a project grant 
application under this subchapter, the Secretary of 
Transportation shall offer the sponsor a grant to pay the 
United States Government's share of the project costs allowable 
under section 47110 of this title. The Secretary may impose 
terms on the offer that the Secretary considers necessary to 
carry out this subchapter and regulations prescribed under this 
subchapter. An offer shall state the obligations to be assumed 
by the sponsor and the maximum amount the Government will pay 
for the project from the amounts authorized under chapter 481 
of this title (except sections 48102(e), 48106, 48107, and 
48110). At the request of the sponsor, an offer of a grant for 
a project that will not be completed in one fiscal year shall 
provide for the obligation of amounts apportioned or to be 
apportioned to a sponsor under section 47114(c) or 
47114(d)(3)(A) of this title for the fiscal years necessary to 
pay the Government's share of the cost of the project. An offer 
that is accepted in writing by the sponsor is an agreement 
binding on the Government and the sponsor. The Government may 
pay or be obligated to pay a project cost only after a grant 
agreement for the project is signed.

           *       *       *       *       *       *       *


Sec. 47109. United States Government's share of project costs

  (a) General.--Except as provided in subsection (b) of this 
section, the United States Government's share of allowable 
project costs is--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) 90 percent for a project at any other airport; 
        and
          [(4) 40 percent for a project funded by the 
        Administrator from the discretionary fund under section 
        47115 at an airport receiving an exemption under 
        section 47134; and]
          [(5)] (4) for fiscal year 2002, 100 percent for a 
        project described in section 47102(3)(J), 47102(3)(K), 
        or 47102(3)(L).

           *       *       *       *       *       *       *


Sec. 47110. Allowable project costs

  (a)  * * *
  (b) Allowable Cost Standards.--A project cost is allowable--
          (1) if the cost necessarily is incurred in carrying 
        out the project in compliance with the grant agreement 
        made for the project under this subchapter, including 
        any cost a sponsor incurs related to an audit the 
        Secretary requires under section 47121(b) or (d) of 
        this title and any cost of moving a Federal facility 
        impeding the project if the rebuilt facility is of an 
        equivalent size and type;
          (2)(A)  * * *

           *       *       *       *       *       *       *

          (C) if the Government's share is paid only with 
        amounts apportioned under paragraphs (1) and (2) of 
        section 47114(c) [of this title] or section 
        47114(d)(3)(A) and if the cost is incurred--
                  (i)  * * *

           *       *       *       *       *       *       *

          (D) if the cost is incurred after September 11, 2001, 
        for a project described in section 47102(3)(J)[, 
        47102(3)(K), or 47102(3)(L)] and shall not depend upon 
        the date of execution of a grant agreement made under 
        this subchapter;

           *       *       *       *       *       *       *

          (4) if the cost is not incurred in a project for 
        airport development or airport planning for which other 
        Government assistance has been granted; [and]
          (5) if the total costs allowed for the project are 
        not more than the amount stated in the grant agreement 
        as the maximum the Government will pay (except as 
        provided in section 47108(b) of this title)[.]; and
          (6) in the case of a project for acquiring for use at 
        a commercial service airport vehicles and ground 
        support equipment owned by an airport that is not 
        described in section 47102(3) and that include low-
        emission technology, if the total costs allowed for the 
        project are not more than the incremental cost of 
        equipping such vehicles or equipment with low-emission 
        technology, as determined by the Secretary.

           *       *       *       *       *       *       *

  (e) Letters of Intent.--(1)  * * *

           *       *       *       *       *       *       *

  (6) Limitation on statutory construction.--Nothing in this 
section 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.
  (f) Nonallowable Costs.--Except as provided in [subsection 
(d)] subsections (d) and (h) of this section and section 
47118(f) of this title, a cost is not an allowable airport 
development project cost if it is for--
          (1)  * * *

           *       *       *       *       *       *       *

  (g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not 
receive priority consideration with respect to the use of 
discretionary funds made available under section 47115 of this 
title even if the amounts made available under paragraphs (1) 
and (2) of section 47114(c) or section 47114(d)(3)(A) are not 
sufficient to cover the Government's share of the cost [of 
project] of the project.
  (h) Construction or Modification of Public Parking Facilities 
for Security Purposes.--Notwithstanding subsection (f)(1), a 
cost of constructing or modifying a public parking facility for 
passenger automobiles to comply with a regulation or directive 
of the Department of Homeland Security shall be treated as an 
allowable airport development project cost.
  (i) Debt Financing.--In the case of an airport that is not a 
medium hub airport or large hub airport, the Secretary may 
determine that allowable airport development project costs 
include payments of interest, commercial bond insurance, and 
other credit enhancement costs associated with a bond issue to 
finance the project.
  (j) 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.

           *       *       *       *       *       *       *


Sec. 47114. Apportionments

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Amounts Apportioned to Sponsors.--
          (1) Primary airports.--
                  (A) Apportionment.--The Secretary shall 
                apportion to the sponsor of each primary 
                airport for each fiscal year an amount equal 
                to--
                          (i)  * * *

           *       *       *       *       *       *       *

                          [(iv) $.65 for each of the next 
                        500,000 passenger boardings at the 
                        airport during the prior calendar year; 
                        and
                          [(v) $.50 for each additional 
                        passenger boarding at the airport 
                        during the prior calendar year.]
                          (iv) $.65 for each of the next 
                        500,000 passenger boardings at the 
                        airport during the prior calendar year;
                          (v) $.50 cents for each of the next 
                        2,500,000 passenger boardings at the 
                        airport during the prior calendar year; 
                        and
                          (vi) $.45 cents for each additional 
                        passenger boarding at the airport 
                        during the prior calendar year.

           *       *       *       *       *       *       *

                  (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;
                          (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.
          (2) Cargo [only] airports.--
                  (A) Apportionment.--Subject to subparagraph 
                (D), the Secretary shall apportion an amount 
                equal to [3 percent] 3.5 percent of the amount 
                subject to apportionment each fiscal year to 
                the sponsors of airports served by aircraft 
                providing air transportation of only cargo with 
                a total annual landed weight of more than 
                100,000,000 pounds.

           *       *       *       *       *       *       *


Sec. 47115. Discretionary fund

  (a)  * * *

           *       *       *       *       *       *       *

  [(d) Considerations.--In selecting a project for a grant to 
preserve and enhance capacity as described in subsection (c)(1) 
of this section, the Secretary shall consider--
          [(1) the effect the project will have on the overall 
        national air transportation system capacity;
          [(2) the project benefit and cost, 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;
          [(3) the financial commitment from non-United States 
        Government sources to preserve or enhance airport 
        capacity;
          [(4) the airport improvement priorities of the 
        States, and regional offices of the Administration, to 
        the extent such priorities are not in conflict with 
        paragraphs (1) and (2);
          [(5) the projected growth in the number of passengers 
        that will be using the airport at which the project 
        will be carried out; and
          [(6) any increase in the number of passenger 
        boardings in the preceding 12-month period at the 
        airport at which the project will be carried out, with 
        priority consideration to be given to projects at 
        airports at which the number of passenger boardings 
        increased by at least 20 percent as compared to the 
        number of passenger boardings in the 12-month period 
        preceding such period.]
  (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.
          (2) For all projects.--In selecting a project for a 
        grant described in paragraph (1), the Secretary shall 
        consider 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. 47116. Small airport fund

  (a)  * * *
  (b) Distribution of Amounts.--The Secretary may distribute 
amounts in the fund in each fiscal year for any purpose for 
which amounts are made available under section 48103 of this 
title as follows:
          (1) one-seventh for grants for projects at small hub 
        airports [(as defined in section 41731 of this title)]; 
        and

           *       *       *       *       *       *       *


Sec. 47117. Use of apportioned amounts

  (a)  * * *

           *       *       *       *       *       *       *

  [(c) Primary Airports.--(1) An amount apportioned to a 
sponsor of a primary airport under section 47114(c)(1) of this 
title is available for grants for any public-use airport of the 
sponsor included in the national plan of integrated airport 
systems.
  [(2) A sponsor of a primary airport may make an agreement 
with the Secretary of Transportation waiving any part of the 
amount apportioned for the airport under section 47114(c)(1) of 
this title if the Secretary makes the waived amount available 
for a grant for another public-use airport in the same State or 
geographical area as the primary airport.]
  (c) Use of Sponsor's Apportioned Amounts at Public Use 
Airports.--
          (1) Of sponsor.--An amount apportioned to a sponsor 
        of an airport under section 47114(c) or 47114(d)(3)(A) 
        is available for grants for any public-use airport of 
        the sponsor included in the national plan of integrated 
        airport systems.
          (2) In same state or area.--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 section 
        47114(c) or 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.

           *       *       *       *       *       *       *

  (e) Special Apportionment Categories.--(1) The Secretary 
shall use amounts available to the discretionary fund under 
section 47115 of this title for each fiscal year as follows:
          (A) At least 34 percent for grants for airport noise 
        compatibility planning under section 47505(a)(2) [of 
        this title], and for carrying out noise compatibility 
        programs under section 47504(c) [of this title], 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 47140, and for airport development 
        described in section 47102(3)(F) or 47102(3)(K) to 
        comply with the Clean Air Act (42 U.S.C. 7401 et seq.). 
        The Secretary may count the amount of grants made for 
        such planning and programs with funds apportioned under 
        section 47114 in that fiscal year in determining 
        whether or not such 34 percent requirement is being met 
        in that fiscal year.

           *       *       *       *       *       *       *

          [(C) In any fiscal year in which the total amount 
        made available under section 48103 is $3,200,000,000 or 
        more, at least two-thirds of 1 percent for grants to 
        sponsors of reliever airports which have--
                  [(i) more than 75,000 annual operations;
                  [(ii) a runway with a minimum usable landing 
                distance of 5,000 feet;
                  [(iii) a precision instrument landing 
                procedure;
                  [(iv) a minimum number of aircraft, to be 
                determined by the Secretary, based at the 
                airport; and
                  [(v) been designated by the Secretary as a 
                reliever airport to an airport with 20,000 
                hours of annual delays in commercial passenger 
                aircraft takeoffs and landings.]

           *       *       *       *       *       *       *

  (h) Treatment of Canceled or Reduced Grant Obligations.--For 
the purpose of determining compliance with a limitation, 
enacted in an appropriations Act, on the amount of grant 
obligations of funds made available by section 48103 that may 
be incurred in a fiscal year, an amount that is recovered by 
canceling or reducing a grant obligation of funds made 
available by section 48103 shall be treated as a negative 
obligation that is to be netted against the obligation 
limitation as enacted and thus may permit the obligation 
limitation to be exceeded by an equal amount.

Sec. 47118. Designating current and former military airports

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Terminal Building Facilities.--Not more than [$7,000,000] 
$10,000,000 for each airport from amounts the Secretary 
distributes under section 47115 of this title for a fiscal year 
is available to the sponsor of a current or former military 
airport the Secretary designates under this section to 
construct, improve, or repair a terminal building facility, 
including terminal gates used for revenue passengers getting on 
or off aircraft. A gate constructed, improved, or repaired 
under this subsection--
          (1)  * * *

           *       *       *       *       *       *       *

  (f) Parking Lots, Fuel Farms, Utilities, Hangars and Air 
Cargo Terminals.--Not more than a total of [$7,000,000] 
$10,000,000 for each airport from amounts the Secretary 
distributes under section 47115 of this title for fiscal years 
beginning after September 30, 1992, is available to the sponsor 
of a current or former military airport the Secretary 
designates under this section to construct, improve, or repair 
airport surface parking lots, fuel farms, utilities, and 
hangars and air cargo terminals of an area that is 50,000 
square feet or less.

           *       *       *       *       *       *       *


Sec. 47119. Terminal development costs

  [(a) Repaying Borrowed Money.--An amount apportioned under 
section 47114 of this title and made available to the sponsor 
of an air carrier airport at which terminal development was 
carried out after June 30, 1970, and before July 12, 1976, or, 
in the case of a commercial service airport which annually had 
less than 0.05 percent of the total enplanements in the United 
States, between January 1, 1992, and October 31, 1992, is 
available to repay immediately money borrowed and used to pay 
the costs for terminal development at the airport, if those 
costs would be allowable project costs under section 47110(d) 
of this title if they had been incurred after September 3, 
1982. An amount is available for a grant under this 
subsection--
          [(1) only if--
                  [(A) the sponsor submits the certification 
                required under section 47110(d) of this title;
                  [(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 3 years 
                beginning on the date the grant is used to 
                repay the borrowed money; and
          [(2) subject to the limitations in subsection (b)(1) 
        and (2) of this section.]
  (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 3 years 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).
  (b) Availability of Amounts.--In a fiscal year, the Secretary 
may make available--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) for use by a primary airport that each year does 
        not have more than .05 percent of the total boardings 
        in the United States, any part of amounts that may be 
        distributed for the fiscal year from the discretionary 
        fund and small airport fund to pay project costs 
        allowable under section 47110(d) of this title; [or]
          (4) not more than $25,000,000 to pay project costs 
        allowable for the fiscal year under section 47110(d) of 
        this title for projects at commercial service airports 
        that were not eligible for assistance for terminal 
        development during the fiscal year ending September 30, 
        1980, under section 20(b) of the Airport and Airway 
        Development Act of 1970[.]; or
          (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. 47124. Agreements for State and local operation of airport 
                    facilities

  (a)  * * *
  (b) Air Traffic Control Contract Program.--(1) The Secretary 
shall continue the low activity (Visual Flight Rules) level I 
air traffic control tower contract program established under 
subsection (a) of this section for towers existing [on December 
30, 1987,] on date of enactment of the Flight 100--Century of 
Aviation Reauthorization Act and extend the program to other 
towers as practicable.

           *       *       *       *       *       *       *

          (3) Contract air traffic control tower [pilot] 
        program.--
                  (A) In general.--The Secretary shall 
                establish a [pilot] program to contract for air 
                traffic control services at nonapproach control 
                towers, as defined by the Secretary, that do 
                not qualify for the contract tower program 
                established under subsection (a) and continued 
                under paragraph (1) (in this paragraph referred 
                to as the ``Contract Tower Program'').
                  (B) Program components.--In carrying out the 
                [pilot] program, the Secretary shall--
                          (i)  * * *

           *       *       *       *       *       *       *

                  (C) Priority.--In selecting facilities to 
                participate in the [pilot] program, the 
                Secretary shall give priority to the following 
                facilities:
                          (i)  * * *

           *       *       *       *       *       *       *

                  (D) Costs exceeding benefits.--If the costs 
                of operating an air traffic tower under the 
                [pilot] program exceed the benefits, the 
                airport sponsor or State or local government 
                having jurisdiction over the airport shall pay 
                the portion of the costs that exceed such 
                benefit.
                  (E) Funding.--Of the amounts appropriated 
                pursuant to section 106(k), not more than 
                [$6,000,000 per fiscal year] $6,500,000 for 
                fiscal year 2004, $7,000,000 for fiscal year 
                2005, $7,500,000 for fiscal year 2006, and 
                $8,000,000 for fiscal year 2007 may be used to 
                carry out this paragraph.
          (4) Construction of air traffic control towers.--
                  (A)  * * *
                  (B) Eligibility.--An airport sponsor shall be 
                eligible for a grant under this paragraph only 
                if--
                          (i)(I) the sponsor is a participant 
                        in the Federal Aviation Administration 
                        contract tower program established 
                        under subsection (a) and continued 
                        under paragraph (1) or the [pilot] 
                        program established under paragraph 
                        (3); or

           *       *       *       *       *       *       *

                  (C) Limitation on federal share.--The Federal 
                share of the cost of construction of a 
                nonapproach control tower under this paragraph 
                may not exceed [$1,100,000] $1,500,000.

           *       *       *       *       *       *       *


[Sec. 47130. Airport safety data collection

  [Notwithstanding any other provision of law, the 
Administrator of the Federal Aviation Administration may 
contract, using sole source or limited source authority, for 
the collection of airport safety data.]

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. 47134. Pilot program on private ownership of airports

  (a)  * * *
  (b) Approval of Applications.--The Secretary may approve, 
with respect to not more than 5 airports, applications 
submitted under subsection (a) granting exemptions from the 
following provisions:
          (1) Use of revenues.--
                  (A) In general.--The Secretary may grant an 
                exemption to a sponsor from the provisions of 
                sections 47107(b) and 47133 of this title (and 
                any other law, regulation, or grant assurance) 
                to the extent necessary to permit the sponsor 
                to recover from the sale or lease of the 
                airport such amount as may be approved--
                          [(i) by at least 65 percent of the 
                        air carriers serving the airport; and
                          [(ii) by 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.]
                          (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) by the Secretary at any 
                        nonprimary airport after the airport 
                        has consulted with at least 65 percent 
                        of the owners of aircraft based at that 
                        airport, as determined by the 
                        Secretary.
                  (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)] (C) Landed weight defined.--In this 
                paragraph, the term ``landed weight'' means the 
                weight of aircraft transporting passengers or 
                cargo, or both, in intrastate, interstate, and 
                foreign air transportation, as the Secretary 
                determines under regulations the Secretary 
                prescribes.

           *       *       *       *       *       *       *


Sec. 47135. Innovative financing techniques

  (a) In General.--The Secretary of Transportation may approve 
after the date of enactment of the Flight 100--Century of 
Aviation Reauthorization Act applications for not more than 
[20] 10 airport development projects for which grants received 
under this subchapter may be used for innovative financing 
techniques. [Such projects shall be located at airports that 
each year have less than .25 percent of the total number of 
passenger boardings each year at all commercial service 
airports in the most recent calendar year for which data is 
available.] Such projects shall be located at airports that are 
not medium or large hub airports.

           *       *       *       *       *       *       *

  (c) Limitations.--
          (1)  * * *
          (2) Types of techniques.--In this section, innovative 
        financing techniques are limited to--
                  [(A) payment of interest;
                  [(B) commercial bond insurance and other 
                credit enhancement associated with airport 
                bonds for eligible airport development;]
                  [(C)] (A) flexible non-Federal matching 
                requirements; and
                  [(D)] (B) use of funds apportioned under 
                section 47114 for the payment of principal and 
                interest of terminal development for costs 
                incurred before the date of the enactment of 
                this section.

           *       *       *       *       *       *       *


Sec. 47137. Airport security program

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Administration.--The Secretary, in cooperation with the 
Secretary of Homeland Security, shall administer the program 
authorized by this section.
  [(e)] (f) Eligible Sponsor Defined.--In this section, the 
term ``eligible sponsor'' means a nonprofit corporation 
composed of a consortium of public and private persons, 
including a sponsor of a primary airport, with the necessary 
engineering and technical expertise to successfully conduct the 
testing and evaluation of airport and aircraft related security 
systems.
  [(f)] (g) Authorization of Appropriations.--Of the amounts 
made available to the Secretary under section 47115 in a fiscal 
year, the Secretary shall make available not less than 
$5,000,000 for the purpose of carrying out this section.

Sec. 47138. Emission credits for air quality projects

  (a) In General.--The Secretary of Transportation and the 
Administrator of the Environmental Protection Agency shall 
jointly agree on how to assure that airport sponsors receive 
appropriate emission credits for carrying out projects 
described in sections 40117(a)(3)(G), 47102(3)(K), and 
47102(3)(L). Such agreement must 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.--
          (1) In general.--As a condition for making a grant 
        for a project described in section 47102(3)(K), 
        47102(3)(L), or 47139 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), 
        47102(3)(K), 47102(3)(L), or 47139, 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.
          (2) Agreement on previously approved projects.--The 
        Secretary and the Administrator of the Environmental 
        Protection Agency shall jointly agree on how to provide 
        emission credits to airport projects previously 
        approved under section 47136 under terms consistent 
        with the conditions enumerated in this section.

Sec. 47139. 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.

Sec. 47140. 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 land use compatibility 
plans or 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 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 past 
        10 years; and
          (2) the land use plan meets the requirements of this 
        section and any project resulting from the plan meets 
        such requirements.
  (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) provide written assurance to the Secretary that 
        it will work with the affected airport to identify and 
        adopt such measures; 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 awarded under this 
section for a land use plan or a project resulting from such a 
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 projects 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 received concurrence by the airport 
                operator prior to adoption by 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 
the State or unit of local government to which a grant may be 
awarded 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 
land use compatibility project only if the Secretary is 
satisfied that the project is consistent with the guidelines 
established by the Secretary under this section, that the State 
or unit of local government has provided the assurances 
required by this section, that the Secretary has received 
evidence that 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 
Federal standards.
  (f) Sunset.--This section shall not be in effect after 
September 30, 2007.

Sec. 47141. Prohibition on rent-free space requirements for Federal 
                    Aviation Administration

  (a) In General.--The Secretary of Transportation may not 
require an airport sponsor to provide to the Federal Aviation 
Administration, without compensation, space in a building owned 
by the sponsor and costs associated with such space for 
building construction, maintenance, utilities, and other 
expenses.
  (b) Negotiated Agreements.--Subsection (a) does not 
prohibit--
          (1) the negotiation of agreements between the 
        Secretary and an airport sponsor to provide building 
        construction, maintenance, utilities and expenses, or 
        space in airport sponsor-owned buildings to the Federal 
        Aviation Administration without cost or at below-market 
        rates; or
          (2) the Secretary of Transportation from requiring 
        airport sponsors to provide land without cost to the 
        Federal Aviation Administration for air traffic control 
        facilities.

           *       *       *       *       *       *       *


              SUBCHAPTER III--AIRPORT PROJECT STREAMLINING

Sec. 47171. DOT as lead agency

  (a) Airport Project Review Process.--The Secretary of 
Transportation shall develop and implement a coordinated review 
process for airport capacity enhancement projects at congested 
airports.
  (b) Coordinated Reviews.--
          (1) In general.--The coordinated review process under 
        this section shall provide that all environmental 
        reviews, analyses, opinions, permits, licenses, and 
        approvals that must be issued or made by a Federal 
        agency or airport sponsor for an airport capacity 
        enhancement project at a congested airport will be 
        conducted concurrently, to the maximum extent 
        practicable, and completed within a time period 
        established by the Secretary, in cooperation with the 
        agencies identified under subsection (c) with respect 
        to the project.
          (2) Agency participation.--Each Federal agency 
        identified under subsection (c) shall formulate and 
        implement administrative, policy, and procedural 
        mechanisms to enable the agency to ensure completion of 
        environmental reviews, analyses, opinions, permits, 
        licenses, and approvals described in paragraph (1) in a 
        timely and environmentally responsible manner.
  (c) Identification of Jurisdictional Agencies.--With respect 
to each airport capacity enhancement project at a congested 
airport, 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.
  (d) State Authority.--If a coordinated review process is 
being implemented under this section by the Secretary with 
respect to a project at an airport within the boundaries of a 
State, 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.
  (e) 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 (c) with respect to the project and the 
airport sponsor.
  (f) 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 (b) for the project, the Secretary 
        shall notify, within 30 days of the date of such 
        determination, the Committee on Transportation and 
        Infrastructure of the House of Representatives, the 
        Committee on Commerce, Science, and Transportation of 
        the Senate, 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.
  (g) 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 with respect to an airport capacity enhancement project 
at a congested airport 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.
  (h) Alternatives Analysis.--The Secretary shall determine the 
reasonable alternatives to an airport capacity enhancement 
project at a congested airport. Any other Federal 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.
  (i) Solicitation and Consideration of Comments.--In applying 
subsections (g) and (h), the Secretary shall solicit and 
consider comments from interested persons and governmental 
entities.
  (j) 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. Categorical exclusions

  Not later than 120 days after the date of enactment of this 
section, the Secretary of Transportation shall develop and 
publish a list of categorical exclusions from the requirement 
that an environmental assessment or an environmental impact 
statement be prepared under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) for projects at airports.

Sec. 47173. Access restrictions to ease construction

  At the request of an airport sponsor for a congested airport, 
the Secretary of Transportation 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 imposition of the 
restriction--
          (1) is necessary to mitigate those impacts and 
        expedite construction of the runway;
          (2) is the most appropriate and a cost-effective 
        measure to mitigate those impacts, taking into 
        consideration any environmental tradeoffs associated 
        with the restriction; 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.

Sec. 47174. Airport revenue to pay for mitigation

  (a) In General.--Notwithstanding section 47107(b), section 
47133, or any other provision of this title, the Secretary of 
Transportation may allow an airport sponsor carrying out an 
airport capacity enhancement project at a congested airport to 
make payments, out of revenues generated at the airport 
(including local taxes on aviation fuel), 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 support, the preferred alternative for the project 
        in the documentation prepared pursuant to the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.);
          (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.
  (b) Mitigation of Aircraft Noise.--Mitigation measures 
described in subsection (a) may include the insulation of 
residential buildings and buildings used primarily for 
educational or medical purposes to mitigate the effects of 
aircraft noise and the improvement of such buildings as 
required for the insulation of the buildings under local 
building codes.

Sec. 47175. 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. 47176. 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. 47177. Designation of aviation safety and aviation security 
                    projects for priority environmental review

  (a) In General.--The Administrator of the Federal Aviation 
Administration may designate an aviation safety or aviation 
security project for priority environmental review. The 
Administrator may not delegate this designation authority.
  (b) Project Designation Criteria.--The Administrator shall 
establish guidelines for the designation of an aviation safety 
or aviation security project for priority environmental review. 
Such guidelines shall 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 of 1969 (42 U.S.C. 
        4321 et seq.);
          (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.
  (c) Coordinated Environmental Reviews.--
          (1) Timelines and high priority for coordinated 
        environmental reviews.--The Administrator, in 
        consultation with the heads of affected agencies, shall 
        establish specific timelines for the coordinated 
        environmental review of an aviation safety or aviation 
        security project designated under subsection (a). Such 
        timelines shall be consistent with the timelines 
        established in existing laws and regulations. Each 
        Federal agency with responsibility for project 
        environmental reviews, analyses, opinions, permits, 
        licenses, and approvals shall accord any such review a 
        high priority and shall conduct the review 
        expeditiously and, to the maximum extent possible, 
        concurrently with other such reviews.
          (2) Agency participation.--Each Federal agency 
        identified under subsection (c) shall formulate and 
        implement administrative, policy, and procedural 
        mechanisms to enable the agency to ensure completion of 
        environmental reviews, analyses, opinions, permits, 
        licenses, and approvals described in paragraph (1) in a 
        timely and environmentally responsible manner.
  (d) State Participation.--
          (1) Invitation to participate.--If a priority 
        environmental review process is being implemented under 
        this section with respect to a project within the 
        boundaries of a State with applicable State 
        environmental requirements and approvals, the 
        Administrator shall invite the State to participate in 
        the process.
          (2) State choice.--A State invited to participate in 
        a priority environmental review process, consistent 
        with State law, may choose to participate in such 
        process and direct that all State agencies, which have 
        jurisdiction by law to conduct an environmental review 
        or analysis of the project to determine whether to 
        issue an environmentally related permit, license, or 
        approval for the project, be subject to the process.
  (e) Failure To Give Priority Review.--
          (1) Notice.--If the Secretary of Transportation 
        determines that a Federal agency or a participating 
        State is not complying with the requirements of this 
        section and that such noncompliance is undermining the 
        environmental review process, the Secretary shall 
        notify, within 30 days of such determination, the head 
        of the Federal agency or, with respect to a State 
        agency, the Governor of the State.
          (2) Report to secretary.--A Federal agency that 
        receives a copy of a notification relating to that 
        agency made by the Secretary under paragraph (1) shall 
        submit, within 30 days after receiving such copy, a 
        written report to the Secretary explaining the reasons 
        for the situation described in the notification and 
        what remedial actions the agency intends to take.
          (3) Notification of ceq and committees.--If the 
        Secretary determines that a Federal agency has not 
        satisfactorily addressed the problems within a 
        reasonable period of time following a notification 
        under paragraph (1), the Secretary shall notify 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.
  (f) Procedural provisions.--The procedures set forth in 
subsections (c), (e), (g), (h), and (i) of section 47171 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.
  (g) Definitions.--In this section, the following definitions 
apply:
          (1) 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; or
                  (ii) is necessary for an airport to comply 
                with part 139 of title 14, Code of Federal 
                Regulations (relating to airport 
                certification).
          (2) Aviation security project.--The term ``aviation 
        security project'' means a security project at an 
        airport required by the Department of Homeland 
        Security.
          (3) Federal agency.--The term ``Federal agency'' 
        means a department or agency of the United States 
        Government.

Sec. 47178. 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.

           *       *       *       *       *       *       *


CHAPTER 475--NOISE

           *       *       *       *       *       *       *


SUBCHAPTER I--NOISE ABATEMENT

           *       *       *       *       *       *       *


Sec. 47503. Noise exposure maps

  (a) Submission and Preparation.--An airport operator may 
submit to the Secretary of Transportation a noise exposure map 
showing the noncompatible uses in each area of the map on the 
date the map is submitted, a description of estimated aircraft 
operations during [1985,] a forecast period that is at least 5 
years in the future and how those operations will affect the 
map. The map shall--
          (1)  * * *

           *       *       *       *       *       *       *

  [(b) Revised Maps.--If a change in the operation of an 
airport will establish a substantial new noncompatible use in 
an area surrounding the airport, the airport operator shall 
submit a revised noise exposure map to the Secretary showing 
the new noncompatible use.]
  (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. 47504. Noise compatibility programs

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Grants.--(1)  * * *
          (2) Soundproofing and acquisition of certain 
        residential buildings and properties.--The Secretary 
        may incur obligations to make grants from amounts made 
        available under section 48103 of this title--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) to an airport operator and unit of local 
                government referred to in paragraph (1)(A) or 
                (1)(B) of this subsection to carry out any part 
                of a program developed before February 18, 
                1980, or before implementing regulations were 
                prescribed, if the Secretary decides the 
                program is substantially consistent with 
                reducing existing noncompatible uses and 
                preventing the introduction of additional 
                noncompatible uses and the purposes of this 
                chapter will be furthered by promptly carrying 
                out the program; [and]
                  (D) to an airport operator and unit of local 
                government referred to in paragraph (1)(A) or 
                (1)(B) of this subsection to soundproof a 
                building in the noise impact area surrounding 
                the airport that is used primarily for 
                educational or medical purposes and that the 
                Secretary decides is adversely affected by 
                airport noise[.]; and
                  (E) to an airport operator of a congested 
                airport (as defined in section 47178) 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 47178) even if that airport 
                has not met the requirements of part 150 of 
                title 14, Code of Federal Regulations.

           *       *       *       *       *       *       *


                           PART C--FINANCING

       CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec.
48101.  Air navigation facilities and equipment.
     * * * * * * *
48114.  Funding to the Secretary of Interior for Midway Island Airport.

Sec. 48101. Air navigation facilities and equipment

  (a) General Authorization of Appropriations.--Not more than a 
total of the following amounts may 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) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
          [(1) $2,131,000,000 for fiscal year 1999.
          [(2) $2,689,000,000 for fiscal year 2000.
          [(3) $2,656,765,000 for fiscal year 2001.
          [(4) $2,914,000,000 for fiscal year 2002.
          [(5) $2,981,022,000 for fiscal year 2003.]
          (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.
  [(b) Major Airway Capital Investment Plan Changes.--If the 
Secretary decides that it is necessary to augment or 
substantially modify elements of the Airway Capital Investment 
Plan referred to in section 44501(b) of this title (including a 
decision that it is necessary to establish more than 23 area 
control facilities), not more than $100,000,000 may be 
appropriated to the Secretary out of the Fund for the fiscal 
year ending September 30, 1994, to carry out the augmentation 
or modification.]
  [(c)] (b) Availability of Amounts.--Amounts appropriated 
under this section remain available until expended.
  [(d) Universal Access Systems.--Of the amounts appropriated 
under subsection (a) for fiscal year 2001, $8,000,000 may be 
used for the voluntary purchase and installation of universal 
access systems.
  [(e) Alaska National Air Space Communications System.--Of the 
amounts appropriated under subsection (a) for fiscal year 2001, 
$7,200,000 may be used by the Administrator of the Federal 
Aviation Administration for the Alaska National Air Space 
Interfacility Communications System if the Administrator issues 
a report supporting the use of such funds for the System.]
  (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), $20,000,000 for each 
of fiscal years 2004 through 2007 may be used to document and 
demonstrate the operational benefits of a wake vortex advisory 
system.
  (e) Ground-Based Precision Navigational Aids.--Of amounts 
appropriated under subsection (a), $20,000,000 for each of 
fiscal years 2004 to 2007 may be used to establish a program 
for the installation, operation, and maintenance of a closed-
loop 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 has been certified or 
approved by the Administrator.
  (f) Automated Surface Observation System/Automated Weather 
Observing System Upgrade.--Of the amounts appropriated under 
subsection (a) [for fiscal years beginning after September 30, 
2000], such sums as may be necessary may be used for the 
implementation and use of upgrades to the current automated 
surface observation system/automated weather observing system, 
if the upgrade is successfully demonstrated.

           *       *       *       *       *       *       *


Sec. 48103. Airport planning and development and noise compatibility 
                    planning and programs

  The total amounts which shall be available after September 
30, [1998] 2003, 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) to make 
grants for airport planning and airport development under 
section 47104 of this title, airport noise compatibility 
planning under section 47505(a)(2) of this title, and carrying 
out noise compatibility programs under section 47504(c) of this 
title shall be--
          [(1) $2,410,000,000 for fiscal year 1999;
          [(2) $2,475,000,000 for fiscal year 2000;
          [(3) $3,200,000,000 for fiscal year 2001;
          [(4) $3,300,000,000 for fiscal year 2002; and
          [(5) $3,400,000,000 for fiscal year 2003.]
          (1) $3,400,000,000 for fiscal year 2004;
          (2) $3,600,000,000 for fiscal year 2005;
          (3) $3,800,000,000 for fiscal year 2006; and
          (4) $4,000,000,000 for fiscal year 2007.
Such sums shall remain available until expended.

           *       *       *       *       *       *       *


Sec. 48114. Funding to the Secretary of Interior for Midway Island 
                    Airport

  The following amounts shall be available (and shall remain 
available until expended) to the Secretary of Interior, out of 
the Airport and Airway Trust Fund established under section 
9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502), for 
airport capital projects at the Midway Island Airport:
          (1) $750,000 for fiscal year 2004.
          (2) $2,500,000 for fiscal year 2005.
          (3) $1,000,000 for fiscal year 2006.
          (4) $1,000,000 for fiscal year 2007.

           *       *       *       *       *       *       *


                        PART D--PUBLIC AIRPORTS

CHAPTER 491--METROPOLITAN WASHINGTON AIRPORTS

           *       *       *       *       *       *       *


Sec. 49108. Limitations

  After October 1, [2004] 2007, the Secretary of Transportation 
may not approve an application of the Metropolitan Washington 
Airports Authority--
          (1)  * * *

           *       *       *       *       *       *       *

                              ----------                              


WENDELL H. FORD AVIATION INVESTMENT AND REFORM ACT FOR THE 21ST CENTURY

           *       *       *       *       *       *       *


                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

Subtitle A--Funding

           *       *       *       *       *       *       *


SEC. 106. 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 
                [2003] 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).

           *       *       *       *       *       *       *

          (2) Additional authorizations of appropriations from 
        the general fund.--In any fiscal year through fiscal 
        year [2003] 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.

           *       *       *       *       *       *       *

  (c) Enforcement of Guarantees.--
          (1)  * * *
          (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 [2003] 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.

           *       *       *       *       *       *       *


Subtitle B--Airport Development

           *       *       *       *       *       *       *


SEC. 139. DESIGN-BUILD CONTRACTING.

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Expiration of Authority.--The authority of the 
Administrator to carry out the pilot program under this section 
shall expire on September 30, [2003] 2007.
                              ----------                              


AVIATION AND TRANSPORTATION SECURITY ACT

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TITLE I--AVIATION SECURITY

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SEC. 124. TECHNICAL CORRECTIONS.

  (a)  * * *
  (b) Insurance and Reinsurance of Aircraft.--Section 44306(c) 
(as redesignated by section 201(d) of such Act) is amended by 
inserting ``in the interest of air commerce or national 
security or'' before ``[to carry out foreign policy] to carry 
out the foreign policy''.

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SEC. 145. AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED SERVICE.

  (a)  * * *

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  (c) Sunset.--This section does not apply to air 
transportation the suspension, interruption, or discontinuance 
of which occurs [more than 18 months after] more than 36 months 
after the date of enactment of this Act.

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TITLE 5, UNITED STATES CODE

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PART III--EMPLOYEES

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Subpart G--Insurance and Annuities

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CHAPTER 83--RETIREMENT

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                SUBCHAPTER III--CIVIL SERVICE RETIREMENT

Sec. 8331. Definitions

  For the purpose of this subchapter--
          (1)  * * *

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          (27) ``Nuclear materials courier''--
                  (A)  * * *
                  (B) includes an employee who is transferred 
                directly to a supervisory or administrative 
                position within the same Department of Energy 
                organization, after performing duties referred 
                to in subparagraph (A) for at least 3 years; 
                [and]
          (28) ``Government physician'' has the meaning given 
        that term under section 5948[.]; and
          (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 
                holding a supervisory, managerial, executive, 
                technical, semiprofessional, or professional 
                position for which experience as a controller 
                (within the meaning of section 2109(1)) is a 
                prerequisite.

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Sec. 8335. Mandatory separation

  (a) An air traffic controller shall be separated from the 
service on the last day of the month in which he becomes 56 
years of age or completes the age and service requirements for 
an annuity under section 8336(e), whichever occurs later. The 
Secretary, under such regulations as he may prescribe, may 
exempt a controller having exceptional skills and experience as 
a controller from the automatic separation provisions of this 
subsection until that controller becomes 61 years of age. The 
Secretary shall notify the controller in writing of the date of 
separation at least 60 days before that date. Action to 
separate the controller is not effective, without the consent 
of the controller, until the last day of the month in which the 
60-day notice expires. For purposes of this subsection, the 
term ``air traffic controller'' or ``controller'' has the 
meaning given to it under section 8331(29)(A).

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CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM

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                    SUBCHAPTER I--GENERAL PROVISIONS

Sec. 8401. Definitions

  For the purpose of this chapter--
          (1)  * * *

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          (33) ``Nuclear materials courier'' has the meaning 
        given that term in section 8331(27); [and]
          (34) the term ``Government physician'' has the 
        meaning given such term under section 5948[.]; and
          (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 
                holding a supervisory, managerial, executive, 
                technical, semiprofessional, or professional 
                position for which experience as a controller 
                (within the meaning of section 2109(1)) is a 
                prerequisite.

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SUBCHAPTER II--BASIC ANNUITY

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Sec. 8425. Mandatory separation

  (a) An air traffic controller who is otherwise eligible for 
immediate retirement under section 8412(e) shall be separated 
from the service on the last day of the month in which that air 
traffic controller becomes 56 years of age or completes 20 
years of service if then over that age. The Secretary, under 
such regulations as the Secretary may prescribe, may exempt a 
controller having exceptional skills and experience as a 
controller from the automatic separation provisions of this 
subsection until that controller becomes 61 years of age. The 
Secretary shall notify the controller in writing of the date of 
separation at least 60 days before that date. Action to 
separate the controller is not effective, without the consent 
of the controller, until the last day of the month in which the 
60-day notice expires. For purposes of this subsection, the 
term ``air traffic controller'' or ``controller'' has the 
meaning given to it under section 8401(35)(A).

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