[House Report 108-334]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-334

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



 
          VISION 100--CENTURY OF AVIATION REAUTHORIZATION ACT

                                _______
                                

                October 29, 2003.--Ordered to be printed

                                _______
                                

 Mr. Young of Alaska, from the committee on conference, submitted the 
                               following

                           CONFERENCE REPORT

                        [To accompany H.R. 2115]

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

                   Subtitle A--Funding of FAA Programs

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

                   Subtitle B--Passenger Facility Fees

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

                      Subtitle C--AIP Modifications

Sec. 141. Airfield pavement.
Sec. 142. Replacement of baggage conveyor systems.
Sec. 143. Authority to use certain funds for airport security programs 
          and activities.
Sec. 144. Grant assurances.
Sec. 145. Clarification of allowable project costs.
Sec. 146. Apportionments to primary airports.
Sec. 147. Cargo airports.
Sec. 148. Considerations in making discretionary grants.
Sec. 149. Flexible funding for nonprimary airport apportionments.
Sec. 150. Use of apportioned amounts.
Sec. 151. Increase in apportionment for, and flexibility of, noise 
          compatibility planning programs.
Sec. 152. Pilot program for purchase of airport development rights.
Sec. 153. Military airport program.
Sec. 154. Airport safety data collection.
Sec. 155. Airport privatization pilot program.
Sec. 156. Innovative financing techniques.
Sec. 157. Airport security program.
Sec. 158. Emission credits for air quality projects.
Sec. 159. Low-emission airport vehicles and infrastructure.
Sec. 160. Compatible land use planning and projects by State and local 
          governments.
Sec. 161. Temporary increase in Government share of certain AIP project 
          costs.
Sec. 162. Share of airport project costs.
Sec. 163. Federal share for private ownership of airports.
Sec. 164. Disposition of land acquired for noise compatibility purposes.
Sec. 165. Hangar construction grant assurance.
Sec. 166. Terminal development costs.

                        Subtitle D--Miscellaneous

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

                       TITLE II--FAA ORGANIZATION

                         Subtitle A--FAA Reform

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

                        Subtitle B--Miscellaneous

Sec. 221. Controller staffing.
Sec. 222. Whistleblower protection under acquisition management system.
Sec. 223. FAA purchase cards.
Sec. 224. Procurement.
Sec. 225. Definitions.
Sec. 226. Air traffic controller retirement.
Sec. 227. Design organization certificates.
Sec. 228. Judicial review.
Sec. 229. Overflight fees.

                    TITLE III--ENVIRONMENTAL PROCESS

              Subtitle A--Aviation Development Streamlining

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

                        Subtitle B--Miscellaneous

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

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

                 Subtitle A--Small Community Air Service

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

                        Subtitle B--Miscellaneous

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

                        TITLE V--AVIATION SAFETY

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

                       TITLE VI--AVIATION SECURITY

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

                      TITLE VII--AVIATION RESEARCH

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

                        TITLE VIII--MISCELLANEOUS

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

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

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

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

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

SEC. 3. APPLICABILITY.

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

SEC. 4. FINDINGS.

    Congress finds the following:
            (1) The United States has revolutionized the way 
        people travel, developing new technologies and aircraft 
        to move people more efficiently and more safely.
            (2) Past Federal investment in aeronautics research 
        and development has benefited the economy and national 
        security of the United States and the quality of life 
        of its citizens.
            (3) The total impact of civil aviation on the 
        United States economy exceeds $900,000,000,000 annually 
        and accounts for 9 percent of the gross national 
        product and 11,000,000 jobs in the national workforce. 
        Civil aviation products and services generate a 
        significant surplus for United States trade accounts, 
        and amount to significant numbers of the Nation's 
        highly skilled, technologically qualified work force.
            (4) Aerospace technologies, products, and services 
        underpin the advanced capabilities of our men and women 
        in uniform and those charged with homeland security.
            (5) Future growth in civil aviation increasingly 
        will be constrained by concerns related to aviation 
        system safety and security, aviation system 
        capabilities, aircraft noise, emissions, and fuel 
        consumption.
            (6) Revitalization and coordination of the United 
        States efforts to maintain its leadership in aviation 
        and aeronautics are critical and must begin now.
            (7) A recent report by the Commission on the Future 
        of the United States Aerospace Industry outlined the 
        scope of the problems confronting the aerospace and 
        aviation industries in the United States and found 
        that--
                    (A) aerospace will be at the core of the 
                Nation's leadership and strength throughout the 
                21st century;
                    (B) aerospace will play an integral role in 
                the Nation's economy, security, and mobility; 
                and
                    (C) global leadership in aerospace is a 
                national imperative.
            (8) Despite the downturn in the global economy, 
        projections of the Federal Aviation Administration 
        indicate that upwards of 1,000,000,000 people will fly 
        annually by 2013. Efforts must begin now to prepare for 
        future growth in the number of airline passengers.
            (9) The United States must increase its investment 
        in research and development to revitalize the aviation 
        and aerospace industries, to create jobs, and to 
        provide educational assistance and training to prepare 
        workers in those industries for the future.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

                  Subtitle A--Funding of FAA Programs

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

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

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

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

SEC. 103. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

    (a) In General.--Section 106(k)(1) is amended to read as 
follows:
            ``(1) Salaries, operations, and maintenance.--There 
        is authorized to be appropriated to the Secretary of 
        Transportation for salaries, operations, and 
        maintenance of the Administration--
                    ``(A) $7,591,000,000 for fiscal year 2004;
                    ``(B) $7,732,000,000 for fiscal year 2005;
                    ``(C) $7,889,000,000 for fiscal year 2006; 
                and
                    ``(D) $8,064,000,000 for fiscal year 2007.

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

SEC. 104. FUNDING FOR AVIATION PROGRAMS.

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

``Sec. 48114. Funding for aviation programs

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

``48114. Funding for aviation programs.''.

    (c) Repeal.--Section 106 of the Wendell H. Ford Aviation 
Investment and Reform Act for the 21st Century (49 U.S.C. 48101 
note) and the item relating to such section in the table of 
contents in section 1(b) of such Act are repealed.

SEC. 105. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

    Section 47124 is amended--
            (1) by striking subsection (a) and inserting the 
        following:
    ``(a) Government Relief From Liability.--The Secretary of 
Transportation shall ensure that an agreement under this 
subchapter with a qualified entity (as determined by the 
Secretary), State, or a political subdivision of a State to 
allow the entity, State, or subdivision to operate an airport 
facility relieves the United States Government from any 
liability arising out of, or related to, acts or omissions of 
employees of the entity, State, or subdivision in operating the 
airport facility.'';
            (2) by striking subsection (b)(2) and inserting the 
        following:
    ``(2) The Secretary may make a contract with a qualified 
entity (as determined by the Secretary) or, on a sole source 
basis, with a State or a political subdivision of a State to 
allow the entity, State, or subdivision to operate an airport 
traffic control tower classified as a level I (Visual Flight 
Rules) tower if the Secretary decides that the entity, State, 
or subdivision has the capability to complywith applicable 
safety regulations in operating the facility and with applicable 
competition requirements in making a subcontract to perform work to 
carry out the contract.'';
            (3) in subsection (b)(3)--
                    (A) in the paragraph heading by striking 
                ``pilot'';
                    (B) by striking ``pilot'' each place it 
                appears; and
                    (C) in subparagraph (E) by striking 
                ``$6,000,000 per fiscal year'' and inserting 
                ``$6,500,000 for fiscal 2004, $7,000,000 for 
                fiscal year 2005, $7,500,000 for fiscal year 
                2006, and $8,000,000 for fiscal year 2007''; 
                and
            (4) in subsection (b)(4)(C) by striking 
        ``$1,100,000.'' and inserting ``$1,500,000.''.

SEC. 106. INSURANCE.

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

                  Subtitle B--Passenger Facility Fees

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

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

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

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

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

    (a) Application Requirements.--Section 40117(c) is 
amended--
            (1) by adding at the end of paragraph (2) the 
        following:
            ``(E) The agency must include in its application or 
        notice submitted under subparagraph (A) copies of all 
        certifications of agreement or disagreement received 
        under subparagraph (D).
            ``(F) For the purpose of this section, an eligible 
        agency providing notice and an opportunity for 
        consultation to an air carrier or foreign air carrier 
        is deemed to have satisfied the requirements of this 
        paragraph if the eligible agency limits such notices 
        and consultations to air carriers and foreign air 
        carriers that have a significant business interest at 
        the airport. In the subparagraph, the term `significant 
        business interest' means an air carrier or foreign air 
        carrier that had no less than 1.0 percent of passenger 
        boardings at the airport in the prior calendar year, 
        had at least 25,000 passenger boardings at the airport 
        in the prior calendar year, or provides scheduled 
        service at the airport.'';
            (2) by redesignating paragraph (3) as paragraph 
        (4);
            (3) by inserting after paragraph (2) the following:
    ``(3) Before submitting an application, the eligible agency 
must provide reasonable notice and an opportunity for public 
comment. The Secretary shall prescribe regulations that define 
reasonable notice and provide for at least the following under 
this paragraph:
            ``(A) A requirement that the eligible agency 
        provide public notice of intent to collect a passenger 
        facility fee so as to inform those interested persons 
        and agencies that may be affected. The public notice 
        may include--
                    ``(i) publication in local newspapers of 
                general circulation;
                    ``(ii) publication in other local media; 
                and
                    ``(iii) posting the notice on the agency's 
                Internet website.
            ``(B) A requirement for submission of public 
        comments no sooner than 30 days, and no later than 45 
        days, after the date of the publication of the notice.
            ``(C) A requirement that the agency include in its 
        application or notice submitted under subparagraph (A) 
        copies of all comments received under subparagraph 
        (B).''; and
            (4) in the first sentence of paragraph (4) (as 
        redesignated by paragraph (2) of this subsection) by 
        striking ``shall'' and inserting ``may''.
    (b) Pilot Program for Passenger Facility Fee Authorizations 
at Nonhub Airports.--Section 40117 is amended by adding at the 
end the following:
    ``(l) Pilot Program for Passenger Facility Fee 
Authorizations at Nonhub Airports.--
            ``(1) In general.--The Secretary shall establish a 
        pilot program to test alternative procedures for 
        authorizing eligible agencies for nonhub airports to 
        impose passenger facility fees. An eligible agency may 
        impose in accordance with the provisions of this 
        subsection a passenger facility fee under this section. 
        For purposes of the pilot program, the procedures in 
        this subsection shall apply instead of the procedures 
        otherwise provided in this section.
            ``(2) Notice and opportunity for consultation.--The 
        eligible agency must provide reasonable notice and an 
        opportunity for consultation to air carriers and 
        foreign air carriers in accordance with subsection 
        (c)(2) and must provide reasonable notice and 
        opportunity for public comment in accordance with 
        subsection (c)(3).
            ``(3) Notice of intention.--The eligible agency 
        must submit to the Secretary a notice of intention to 
        impose a passenger facility fee under this subsection. 
        The notice shall include--
                    ``(A) information that the Secretary may 
                require by regulation on each project for which 
                authority to impose a passenger facility fee is 
                sought;
                    ``(B) the amount of revenue from passenger 
                facility fees that is proposed to be collected 
                for each project; and
                    ``(C) the level of the passenger facility 
                fee that is proposed.
            ``(4) Acknowledgement of receipt and indication of 
        objection.--The Secretary shall acknowledge receipt of 
        the notice and indicate any objection to the imposition 
        of a passenger facility fee under this subsection for 
        any project identified in the notice within 30 days 
        after receipt of the eligible agency's notice.
            ``(5) Authority to impose fee.--Unless the 
        Secretary objects within 30 days after receipt of the 
        eligible agency's notice, the eligible agency is 
        authorized to impose a passenger facility fee in 
        accordance with the terms of its notice under this 
        subsection.
            ``(6) Regulations.--Not later than 180 days after 
        the date of enactment of this subsection, the Secretary 
        shall propose such regulations as may be necessary to 
        carry out this subsection.
            ``(7) Sunset.--This subsection shall cease to be 
        effective beginning on the date that is 3 years after 
        the date of issuance of regulations to carry out this 
        subsection.
            ``(8) Acknowledgement not an order.--An 
        acknowledgement issued under paragraph (4) shall not be 
        considered an order issued by the Secretary for 
        purposes of section 46110.''.
    (c) Clarification of Applicability of PFC's to Military 
Charters.--Section 40117(e)(2) is amended--
            (1) by striking the period at the end of 
        subparagraph (C) and inserting a semicolon;
            (2) by striking ``and'' at the end of subparagraph 
        (D);
            (3) by striking the period at the end of 
        subparagraph (E) and inserting ``; and''; and
            (4) by adding after subparagraph (E) the following:
            ``(F) enplaning at an airport if the passenger did 
        not pay for the air transportation which resulted in 
        such enplanement due to charter arrangements and 
        payment by the Department of Defense.''.
    (d) Technical Amendments.--Section 40117(a)(3)(C) is 
amended--
            (1) by striking ``for costs'' and inserting ``A 
        project for costs''; and
            (2) by striking the semicolon and inserting a 
        period.
    (e) Eligibility of Airport Ground Access Transportation 
Projects.--Not later than 60 days after the enactment of this 
Act, the Administrator of the Federal Aviation Administration 
shall publish in the Federal Register the current policy of the 
Administration, consistent with current law, with respect to 
the eligibility of airport ground access transportation 
projects for the use of passenger facility fees under section 
40117 of title 49, United States Code.

SEC. 124. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES.

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

                     Subtitle C--AIP Modifications

SEC. 141. AIRFIELD PAVEMENT.

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

SEC. 142. REPLACEMENT OF BAGGAGE CONVEYOR SYSTEMS.

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

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

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

SEC. 144. GRANT ASSURANCES.

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

SEC. 145. CLARIFICATION OF ALLOWABLE PROJECT COSTS.

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

SEC. 146. APPORTIONMENTS TO PRIMARY AIRPORTS.

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

SEC. 147. CARGO AIRPORTS.

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

SEC. 148. CONSIDERATIONS IN MAKING DISCRETIONARY GRANTS.

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

SEC. 149. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

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

SEC. 150. USE OF APPORTIONED AMOUNTS.

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

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

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

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

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

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

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

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

SEC. 153. MILITARY AIRPORT PROGRAM.

    Section 47118 is amended--
            (1) in subsection (e) by striking ``Not more than 
        $7,000,000 for each airport from amounts the Secretary 
        distributes under section 47115 of this title for a 
        fiscal year is available'' and inserting ``From amounts 
        the Secretary distributes to an airport under section 
        47115, $10,000,000 for each of fiscal years 2004 and 
        2005, and $7,000,000 for each fiscal year thereafter, 
        is available'';
            (2) in subsection (f) by striking ``Not more than a 
        total of $7,000,000 for each airport from amounts the 
        Secretary distributes under section 47115 of this title 
        for fiscal years beginning after September 30, 1992, is 
        available'' and inserting the following:
            ``(1) Construction.--From amounts the Secretary 
        distributes to an airport under section 47115, 
        $10,000,000 for each of fiscal years 2004 and 2005, and 
        $7,000,000 for each fiscal year thereafter, is 
        available''; and
            (3) by adding at the end of subsection (f) the 
        following:
            ``(2) Reimbursement.--Upon approval of the 
        Secretary, the sponsor of a current or former military 
        airport the Secretary designates under this section may 
        use an amount apportioned under section 47114, or made 
        available under section 47115 or 47117(e)(1)(B), to the 
        airport for reimbursement of costs incurred by the 
        airport in fiscal years 2003 and 2004 for construction, 
        improvement, or repair described in paragraph (1).''.

SEC. 154. AIRPORT SAFETY DATA COLLECTION.

    Section 47130 is amended to read as follows:

``Sec. 47130. Airport safety data collection

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

SEC. 155. AIRPORT PRIVATIZATION PILOT PROGRAM.

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

SEC. 156. INNOVATIVE FINANCING TECHNIQUES.

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

SEC. 157. AIRPORT SECURITY PROGRAM.

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

SEC. 158. EMISSION CREDITS FOR AIR QUALITY PROJECTS.

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

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

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

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

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

    (a) Airport Ground Support Equipment Emissions Retrofit 
Pilot Program.--
            (1) In general.--Subchapter I of chapter 471 is 
        further amended by adding at the end the following:

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

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

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

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

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

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

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

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

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

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

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

SEC. 162. SHARE OF AIRPORT PROJECT COSTS.

    (a) In General.--Section 47109 is amended--
            (1) by redesignating subsection (c) as subsection 
        (d); and
            (2) by inserting after subsection (b) the 
        following:
    ``(c) Grandfather Rule.--
            ``(1) In general.--In the case of any project 
        approved after September 30, 2003, at a small hub 
        airport or nonhub airport that is located in a State 
        containing unappropriated and unreserved public lands 
        and nontaxable Indian lands (individual and tribal) of 
        more than 5 percent of the total area of all lands in 
        the State, the Government's share of allowable costs of 
        the project shall be increased by the same ratio as the 
        basic share of allowable costs of a project divided 
        into the increased (Public Lands States) share of 
        allowable costs of a project as shown on documents of 
        the Federal Aviation Administration dated August 3, 
        1979, at airports for which the general share was 80 
        percent on August 3, 1979. This subsection shall apply 
        only if--
                    ``(A) the State contained unappropriated 
                and unreserved public lands and nontaxable 
                Indian lands of more than 5 percent of the 
                total area of all lands in the State on August 
                3, 1979; and
                    ``(B) the application under subsection (b), 
                does not increase the Government's share of 
                allowable costs of the project.
            ``(2) Limitation.--The Government's share of 
        allowable project costs determined under this 
        subsection shall not exceed the lesser of 93.75 percent 
        or the highest percentage Government share applicable 
        to any project in any State under subsection (b).''.
    (b) Conforming Amendment.--Subsection (a) of section 47109 
is amended by striking ``Except as provided in subsection (b)'' 
and inserting ``Except as provided in subsection (b) or 
subsection (c)''.

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

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

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

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

SEC. 165. HANGAR CONSTRUCTION GRANT ASSURANCE.

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

SEC. 166. TERMINAL DEVELOPMENT COSTS.

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

                       Subtitle D--Miscellaneous

SEC. 181. DESIGN-BUILD CONTRACTING.

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

``Sec. 47142. Design-build contracting

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

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

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

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

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

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

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

    ``(a) In General.--Subject to the requirements of this 
section, the Secretary may carry out a program under which the 
Secretary may make grants to project sponsors for not more than 
10 eligible projects per fiscal year for the purpose of 
improving aviation safety and enhancing mobility of the 
Nation's air transportation system by encouraging non-Federal 
investment in critical air traffic control equipment and 
software.
    ``(b) Federal Share.--The Federal share of the cost of an 
eligible project carried out under the program shall not exceed 
33 percent. The non-Federal share of the cost of an eligible 
project shall be provided from non-Federal sources, including 
revenues collected pursuant to section 40117.
    ``(c) Limitation on Grant Amounts.--No eligible project may 
receive more than $5,000,000 in Federal funds under the 
program.
    ``(d) Funding.--The Secretary shall use amounts 
appropriated under section 48101(a) to carry out the program.
    ``(e) Definitions.--In this section, the following 
definitions apply:
            ``(1) Eligible project.--The term `eligible 
        project' means a project to purchase equipment or 
        software relating to the Nation's air traffic control 
        system that is certified or approved by the 
        Administrator of the Federal Aviation Administration 
        and that promotes safety, efficiency, or mobility. Such 
        projects may include--
                    ``(A) airport-specific air traffic 
                facilities and equipment, including local area 
                augmentation systems, instrument landing 
                systems, weather and wind shear detection 
                equipment, and lighting improvements;
                    ``(B) automation tools to effect 
                improvements in airport capacity, including 
                passive final approach spacing tools and 
                traffic management advisory equipment; and
                    ``(C) equipment and software that enhance 
                airspace control procedures or assist in en 
                route surveillance, including oceanic and 
                offshore flight tracking.
            ``(2) Project sponsor.--The term `project sponsor' 
        means any major user of the national airspace system, 
        as determined by the Secretary, including a public-use 
        airport or a joint venture between a public-use airport 
        and one or more air carriers.
    ``(f) Transfers of Equipment.--Notwithstanding any other 
provision of law, and upon agreement by the Administrator, a 
project sponsor may transfer, without consideration, to the 
Federal Aviation Administration, facilities, equipment, or 
automation tools, the purchase of which was assisted by a grant 
made under this section, if such facilities, equipment or tools 
meet Federal Aviation Administration operation and maintenance 
criteria.
    ``(g) Guidelines.--The Administrator shall issue advisory 
guidelines on the implementation of the program. The guidelines 
shall not be subject to administrative rulemaking requirements 
under subchapter II of chapter 5 of title 5.''.
    (b) Conforming Amendment.--The analysis for chapter 445 is 
amended by adding at the end the following:

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

SEC. 184. FACILITIES AND EQUIPMENT REPORTS.

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

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

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

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

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

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

SEC. 186. MIDWAY ISLAND AIRPORT.

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

SEC. 187. INTERMODAL PLANNING.

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

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

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

SEC. 189. LIMITATION ON APPROVAL OF CERTAIN PROGRAMS.

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

SEC. 190. CONVEYANCE OF AIRPORT.

    (a) Offer of Conveyance.--Subject to the requirements of 
this section, the Chaluka Corporation is hereby offered 
ownership of the surface estate in the former Nikolski Radio 
Relay Site on Umnak Island, Alaska, and the Aleut Corporation 
is hereby offered the subsurface estate of that Site, in 
exchange for relinquishment by the Chaluka Corporation and the 
Aleut Corporation of Lot 1, Section 14, Township 81 South, 
Range 133 West, Seward Meridian, Alaska.
    (b) Acceptance and Relinquishment.--
            (1) In general.--The Secretary of the Interior 
        shall convey the land as provided in subsection (c) if 
        the Chaluka Corporation and the Aleut Corporation take 
        the actions specified in paragraphs (2) and (3), 
        respectively.
            (2) Chaluka corporation.--As a condition for 
        conveyance under subsection (c), the Chaluka 
        Corporation shall notify the Secretary of the Interior 
        within 180 days after the date of enactment of this Act 
        that, by means of a legally binding resolution of the 
        Board of Directors, the Chaluka Corporation--
                    (A) accepts the offer under subsection (a);
                    (B) confirms that the area surveyed by the 
                Bureau of Land Management for the purpose of 
                fulfilling the Chaluka Corporation's final 
                entitlements under sections 12(a) and 12(b) of 
                the Alaska Native Claims Settlement Act (43 
                U.S.C. 1611(a) and (b)), identified as Group 
                Survey Number 773, accurately represents the 
                Chaluka Corporation's final, irrevocable Alaska 
                Native Claims Settlement Act priorities and 
                entitlements unless any tract in Group Survey 
                Number 773 is ultimately not conveyed as the 
                result of an appeal; and
                    (C) relinquishes Lot 1, Section 14, 
                Township 81 South, Range 133 West, Seward 
                Meridian, Alaska, which will be charged against 
                the Chaluka Corporation's final entitlement 
                under section 12(b) of the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1611(b)).
            (3) Aleut corporation.--As a condition for the 
        conveyance under subsection (c), the Aleut Corporation 
        shall notify the Secretary of the Interior within 180 
        days after the date of enactment of this Act that, by 
        means of a legally binding resolution of the Board of 
        Directors, accompanied by the written legal opinion of 
        counsel as to the legal sufficiency of the Board of 
        Directors' action, the Aleut Corporation--
                    (A) accepts the offer under subsection (a); 
                and
                    (B) relinquishes all rights to Lot 1, 
                Section 14, Township 81 South, Range 133 West, 
                Seward Meridian, Alaska.
    (c) Requirement To Convey.--
            (1) Conveyance.--Notwithstanding the existence of 
        Public Land Order 2374, upon receipt from the Chaluka 
        Corporation and from the Aleut Corporation of their 
        acceptances made in accordance with the requirements of 
        subsections (b)(2) and (b)(3), respectively, of the 
        offer under subsection (a), the Secretary of the 
        Interior shall convey to the Chaluka Corporation the 
        surface estate, and to the Aleut Corporation the 
        subsurface estate, of--
                    (A) Phase I lands as soon as practicable; 
                and
                    (B) each parcel of Phase II lands upon 
                completion of environmental restoration of 
                Phase II lands in accordance with applicable 
                law.
            (2) Phase i liability limit.--Notwithstanding 
        section 107 of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 
        U.S.C. 9607), neither the Chaluka Corporation nor the 
        Aleut Corporation shall be subject to any liability 
        for--
                    (A) the presence or release of a hazardous 
                substance, as that term is defined by section 
                101(14) of that Act (16 U.S.C. 9601(14)), on 
                Phase I lands or the presence of solid waste on 
                Phase I lands, which predates conveyance of 
                those lands to the Chaluka Corporation and the 
                Aleut Corporation pursuant to this section; or
                    (B) any release, from any of the hazardous 
                substances or solid wastes referred to in 
                subparagraph (A), following conveyance of Phase 
                I lands under this section, so long as the 
                presence of or releases from those hazardous 
                substances or solid wastes are not the result 
                of actions by the Chaluka Corporation or the 
                Aleut Corporation.
            (3) Continued access over hill and beach streets.--
        The surface estate conveyed under paragraph (1) shall 
        be subject to the public's right of access over Hill 
        and Beach Streets, located on Tract B of United States 
        Survey 4904.
    (d) Treatment as ancsa lands.--Conveyances made under 
subsection (c) shall be considered to be conveyances under the 
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), 
and are subject to the provisions of that Act except sections 
14(c)(3), 14(c)(4), and 17(b)(3) (43 U.S.C. 1613(c)(3), 
1613(c)(4), and 1616(b)(3)).
    (e) Authority To Convey Certain Other Lands.--The Secretary 
of the Interior shall at no cost to the recipient convey 
ownership of--
            (1) an estate in fee simple in--
                    (A) each of Lots 1, 2, 5, 6, and 9 of Tract 
                B of Amended United States Survey 4904 that is 
                the subject of an Aleutian Housing Authority 
                mutual help occupancy agreement, to the 
                Aleutian Housing Authority; and
                    (B) the remainder of such Lots to the 
                current occupants; and
            (2) an estate in fee simple in the Nikolski 
        powerhouse land, to--
                    (A) the Indian Reorganization Act Tribal 
                Government for the Native Village of 
Nikolski,upon completion of the environmental restoration described in 
subsection (f), if after the restoration the powerhouse continues to be 
located on the Nikolski powerhouse land; or
                    (B) the surface estate to the Chaluka 
                Corporation and the subsurface estate to the 
                Aleut Corporation, if after the restoration, 
                the Nikolski powerhouse is no longer located on 
                the Nikolski powerhouse land.
    (f) Restoration of Powerhouse Land.--The Denali Commission, 
in consultation with the appropriate agency of the State of 
Alaska, is authorized to arrange for environmental restoration, 
in accordance with applicable law, of the areas on, beneath, 
and adjacent to the Nikolski powerhouse land that are 
contaminated as a result of powerhouse operations and 
activities.
    (g) Access.--As a condition of the conveyance of land under 
subsection (c), the Chaluka Corporation shall permit the United 
States Government, and its agents, employees, and contractors, 
to have unrestricted access to the airfield at Nikolski in 
perpetuity for site investigation, restoration, remediation, 
and environmental monitoring of the former Nikolski Radio Relay 
Site and reasonable access to that airfield, and to other land 
conveyed under this section, for any activity associated with 
management of lands owned by the United States and for other 
governmental purposes without cost to the Government.
    (h) Survey Requirements.--
            (1) BLM surveys.--The Bureau of Land Management is 
        not required to conduct additional on-the-ground 
        surveys as a result of conveyances under this section. 
        The patent to the Chaluka Corporation may be based on 
        protracted section lines and lotting where 
        relinquishment under subsection (b)(2)(C) results in a 
        change to the Chaluka Corporation's final boundaries.
            (2) Monumentation.--No additional monumentation is 
        required to complete those final boundaries.
    (i) Authorization of Appropriations.--
            (1) Federal agencies.--There is authorized to be 
        appropriated to the Department of the Interior and 
        other appropriate agencies such sums as are necessary 
        to carry out the provisions of this section.
            (2) Powerhouse land restoration.--There is 
        authorized to be appropriated $1,500,000 to reimburse 
        the appropriate State of Alaska agency for costs 
        required for environmental restoration of the Nikolski 
        powerhouse land, in accordance with applicable law.
    (j) Termination.--This section shall cease to be effective 
if either the Chaluka Corporation or the Aleut Corporation 
affirmatively rejects the offer under subsection (a) or if 
after 180 days following the date of enactment of this Act 
either corporation has not taken the actions specified in 
subsection (b)(2) or (b)(3), respectively.
    (k) Definitions.--In this section, the following 
definitions apply:
            (1) The term ``Aleut Corporation'' means the 
        regional corporation established under the Alaska 
        Native Claims Settlement Act (43 U.S.C. 1601 et seq.) 
        for the region in which the Native Village of Nikolski, 
        Alaska, is located.
            (2) The term ``Chaluka Corporation'' means the 
        village corporation established under the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1601 et seq.) for the 
        Native Village of Nikolski, Alaska.
            (3) The term ``former Nikolski Radio Relay Site'' 
        means the portions of Tracts A, B, and C of Public Land 
        Order 2374 that are surveyed as Tracts 37, 37A, 38, 39, 
        and 39A of Township 83 South, Range 136 West, Seward 
        Meridian, Alaska, and Tract B of United States Survey 
        4904, Alaska, except--
                    (A) Lots 1, 2, 5, 6, and 9 of Tract B of 
                Amended United States Survey 4904; and
                    (B) the Nikolski powerhouse land.
            (4) The term ``Nikolski powerhouse land'' means the 
        parcel of land upon which is located the power 
        generation building for supplying power to the Native 
        Village of Nikolski, the boundaries of which are 
        described generally as follows: Beginning at the point 
        at which the southerly boundary of Tract 39 of Township 
        83 South, Range 136 West, Seward Meridian, Alaska, 
        intersects the easterly boundary of the road that 
        connects the Native Village of Nikolski and the 
        airfield at Nikolski; then meandering in a 
        northeasterly direction along the easterly boundary of 
        that road until the road intersects the westerly 
        boundary of the road that connects Umnak Lake and the 
        airfield; then meandering in a southerly direction 
        along the western boundary of that Umnak Lake road 
        until that western boundary intersects the southern 
        boundary of such Tract 39; then proceeding eastward 
        along the southern boundary of such Tract 39 to the 
        beginning point.
            (5) The term ``Phase I lands'' means Tract 39 of 
        Township 83 South, Range 136 West, Seward Meridian, 
        excluding the Nikolski powerhouse land.
            (6) The term ``Phase II lands'' means the portion 
        of the former Nikolski Radio Relay Site not conveyed as 
        Phase I lands.

                       TITLE II--FAA ORGANIZATION

                         Subtitle A--FAA Reform

SEC. 201. MANAGEMENT ADVISORY COMMITTEE MEMBERS.

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

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

    Section 106(p) is amended--
            (1) by striking paragraph (3) and inserting the 
        following:
            ``(3) Qualifications.--No officer or employee of 
        the United States Government may be appointed to the 
        Council under paragraph (2)(C) or to the Air Traffic 
        Services Committee.'';
            (2) in paragraph (4)(C) by inserting ``or Air 
        Traffic Services Committee'' after ``Council'' each 
        place it appears;
            (3) in paragraph (5) by inserting ``, the Air 
        Traffic Services Committee,'' after ``Council'';
            (4) in paragraph (6)(C)--
                    (A) by striking ``subcommittee'' in the 
                subparagraph heading and inserting 
                ``committee'';
                    (B) by striking ``member'' and inserting 
                ``members'';
                    (C) by striking ``under paragraph (2)(E)'' 
                the first place it appears and inserting ``to 
                the Air Traffic Services Committee''; and
                    (D) by striking ``of the members first'' 
                and all that follows through the period at the 
                end and inserting ``the first members of the 
                Committee shall be the members of the Air 
                Traffic Services Subcommittee of the Council on 
                the day before the date of enactment of the 
                Vision 100--Century of Aviation Reauthorization 
                Act who shall serve in an advisory capacity 
                until such time as the President appoints the 
                members of the Committee under paragraph 
                (7).'';
            (5) in paragraph (6)(D) by striking ``under 
        paragraph (2)(E)'' and inserting ``to the Committee'';
            (6) in paragraph (6)(E) by inserting ``or 
        Committee'' after ``Council'';
            (7) in paragraph (6)(F) by inserting ``of the 
        Council or Committee'' after ``member'';
            (8) in the second sentence of subparagraph (6)(G)--
                    (A) by striking ``Council'' and inserting 
                ``Committee''; and
                    (B) by striking ``appointed under paragraph 
                (2)(E)'';
            (9) in paragraph (6)(H)--
                    (A) by striking ``subcommittee'' in the 
                subparagraph heading and inserting 
                ``committee'';
                    (B) by striking ``under paragraph (2)(E)'' 
                in clause (i) and inserting ``to the 
                Committee''; and
                    (C) by striking ``Air Traffic Services 
                Subcommittee'' and inserting ``Committee'';
            (10) in paragraph (6)(I)(i)--
                    (A) by striking ``appointed under paragraph 
                (2)(E) is'' and inserting ``is serving as''; 
                and
                    (B) by striking ``Subcommittee'' and 
                inserting ``Committee'';
            (11) in paragraph (6)(I)(ii)--
                    (A) by striking ``appointed under paragraph 
                (2)(E)'' and inserting ``who is a member of the 
                Committee''; and
                    (B) by striking ``Subcommittee'' and 
                inserting ``Committee'';
            (12) in paragraph (6)(K) by inserting ``or 
        Committee'' after ``Council'';
            (13) in paragraph (6)(L) by inserting ``or 
        Committee'' after ``Council'' each place it appears; 
        and
            (14) in paragraph (7)--
                    (A) by striking ``subcommittee'' in the 
                paragraph heading and inserting ``committee'';
                    (B) by striking subparagraph (A) and 
                inserting the following:
                    ``(A) Establishment.--The Administrator 
                shall establish a committee that is independent 
                of the Council by converting the Air Traffic 
                Services Subcommittee of the Council, as in 
                effect on the day before the date of enactment 
                of the Vision 100--Century of Aviation 
                Reauthorization Act, into such committee. The 
                committee shall be known as the Air Traffic 
                Services Committee (in this subsection referred 
                to as the `Committee').'';
                    (C) by redesignating subparagraphs (B) 
                through (F) as subparagraphs (D) through (H), 
                respectively;
                    (D) by inserting after subparagraph (A) the 
                following:
                    ``(B) Membership and qualifications.--
                Subject to paragraph (6)(C), the Committee 
                shall consist of five 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 
                committee.--No member of the Committee may--
                            ``(i) have a pecuniary interest in, 
                        or own stock in or bonds of, an 
                        aviation or aeronautical enterprise, 
                        except an interest in a diversified 
                        mutual fund or an interest that is 
                        exempt from the application of section 
                        208 of title 18;
                            ``(ii) engage in another business 
                        related to aviation or aeronautics; or
                            ``(iii) be a member of any 
                        organization that engages, as a 
                        substantial part of its activities, in 
                        activities to influence aviation-
                        related legislation.'';
                    (E) by striking ``Subcommittee'' each place 
                it appears in subparagraphs (D) and (E) (as 
                redesignated by subparagraph (C) of this 
                paragraph) and inserting ``Committee'';
                    (F) by striking ``approve'' in subparagraph 
                (E)(v)(I) (as so redesignated) and inserting 
                ``make recommendations on'';
                    (G) by striking ``request'' in subparagraph 
                (E)(v)(II) (as so redesignated) and inserting 
                ``recommendations'';
                    (H) by striking ``ensure that the budget 
                request supports'' in subparagraph (E)(v)(III) 
                (as so redesignated) and inserting ``base such 
                budget recommendations on'';
                    (I) by striking ``The Secretary shall 
                submit'' in subparagraph (E) (as so 
                redesignated) and all that follows through the 
                period at the end of such subparagraph (E);
                    (J) by striking subparagraph (F) (as so 
                redesignated) and inserting the following:
                    ``(F) Committee personnel matters and 
                expenses.--
                            ``(i) Personnel matters.--The 
                        Committee may appoint and terminate for 
                        purposes of employment by the Committee 
                        any personnel that may be necessary to 
                        enable the Committee to perform its 
                        duties, and may procure temporary and 
                        intermittent services under section 
                        40122.
                            ``(ii) Travel expenses.--Each 
                        member of the Committee shall receive 
                        travel expenses, including per diem in 
                        lieu of subsistence, in accordance with 
                        applicable provisions under subchapter 
                        I of chapter 57 of title 5, United 
                        States Code.'';
                    (K) in subparagraph (G) (as so 
                redesignated)--
                            (i) by striking clause (i);
                            (ii) by redesignating clauses (ii), 
                        (iii), and (iv) as clauses (i), (ii), 
                        and (iii), respectively; and
                            (iii) by striking ``Subcommittee'' 
                        each place it appears in clauses (i), 
                        (ii), and (iii) (as so redesignated) 
                        and inserting ``Committee'';
                    (L) in subparagraph (H) (as so 
                redesignated)--
                            (i) by striking ``Subcommittee'' 
                        each place it appears and inserting 
                        ``Committee'';
                            (ii) by striking ``Administrator, 
                        the Council'' each place it appears in 
                        clauses (i) and (ii) and inserting 
                        ``Secretary''; and
                            (iii) in clause (ii) by striking 
                        ``(B)(i)'' and inserting ``(D)(i)''; 
                        and
                    (M) by adding at the end the following:
                    ``(I) Authorization.--There are authorized 
                to be appropriated to the Committee such sums 
                as may be necessary for the Committee to carry 
                out its activities.''.

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

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

SEC. 204. DEPUTY ADMINISTRATOR.

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

                       Subtitle B--Miscellaneous

SEC. 221. CONTROLLER STAFFING.

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

SEC. 222. WHISTLEBLOWER PROTECTION UNDER ACQUISITION MANAGEMENT SYSTEM.

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

SEC. 223. FAA PURCHASE CARDS.

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

SEC. 224. PROCUREMENT.

    (a) 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 and shall be subject to judicial review under 
        section 46110 and to section 504 of title 5.''.
    (c) Authority of Administrator To Acquire Services.--
Section 106(f)(2)(A)(ii) is amended by inserting ``, 
services,'' after ``property''.

SEC. 225. DEFINITIONS.

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

SEC. 226. AIR TRAFFIC CONTROLLER RETIREMENT.

    (a) Air Traffic Controller Defined.--
            (1) Civil service retirement system.--Section 8331 
        of title 5, United States Code, is amended--
                    (A) by striking ``and'' at the end of 
                paragraph (27);
                    (B) by striking the period at the end of 
                paragraph (28) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(29) the term `air traffic controller' or 
        `controller' means--
                    ``(A) a controller within the meaning of 
                section 2109(1); and
                    ``(B) a civilian employee of the Department 
                of Transportation or the Department of Defense 
                who is the immediate supervisor of a person 
                described in section 2109(1)(B).''.
            (2) Federal employees' retirement system.--Section 
        8401 of title 5, United States Code, is amended--
                    (A) by striking ``and'' at the end of 
                paragraph (33);
                    (B) by striking the period at the end of 
                paragraph (34) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(35) the term `air traffic controller' or 
        `controller' means--
                    ``(A) a controller within the meaning of 
                section 2109(1); and
                    ``(B) a civilian employee of the Department 
                of Transportation or the Department of Defense 
                who is the immediate supervisor of a person 
                described in section 2109(1)(B).''.
            (3) Mandatory separation treatment not affected.--
                    (A) Civil service retirement system.--
                Section 8335(a) of title 5, United States Code, 
                is amended by adding at the end the following: 
                ``For purposes of this subsection, the term 
                `air traffic controller' or `controller' has 
                the meaning given to it under section 
                8331(29)(A).''.
                    (B) Federal employees' retirement system.--
                Section 8425(a) of title 5, United States Code, 
                is amended by adding at the end the following: 
                ``For purposes of this subsection, the term 
                `air traffic controller' or `controller' has 
                the meaning given to it under section 
                8401(35)(A).''.
    (b) Modified Annuity Computation Rule for Certain Air 
Traffic Controllers Under FERS.--
            (1) In general.--Section 8415 of title 5, United 
        States Code, is amended--
                    (A) by redesignating subsections (e) 
                through (j) as subsections (f) through (k), 
                respectively, and by redesignating the second 
                subsection (i) as subsection (l); and
                    (B) by inserting after subsection (d) the 
                following:
    ``(e) The annuity of an air traffic controller or former 
air traffic controller retiring under section 8412(a) is 
computed under subsection (a), except that if the individual 
has had at least 5 years of service as an air traffic 
controller as defined by section 2109(1)(A)(i), so much of the 
annuity as is computed with respect to such type of service 
shall be computed by multiplying 1\7/10\ percent of the 
individual's average pay by the years of such service.''.
            (2) Conforming amendments.--(A) Section 8422(d)(2) 
        of title 5, United States Code, is amended by striking 
        ``8415(i)'' and inserting ``8415(j)''.
            (B) Section 8452(d)(1) of such title is amended by 
        striking ``subsection (f)'' and inserting ``subsection 
        (g)''.
            (C) Section 8468(b)(1)(A) of such title is amended 
        by striking ``through (g)'' and inserting ``through 
        (h)''.
            (D) Section 302(a) of the Federal Employees' 
        Retirement System Act of 1986 (5 U.S.C. 8331 note) is 
        amended--
                    (i) in paragraph (1)(D)(VI), by striking 
                ``subsection (g)'' and inserting ``subsection 
                (h)'';
                    (ii) in paragraph (9), by striking 
                ``8415(f)'' and inserting ``8415(g)''; and
                    (iii) in paragraph (12)(B)(ii), by striking 
                ``through (f)'' and inserting ``through (g)''.
    (c) Effective Date.--
            (1) In general.--This section and the amendments 
        made by this section--
                    (A) shall take effect on the 60th day after 
                the date of enactment of this Act; and
                    (B) shall apply with respect to--
                            (i) any annuity entitlement to 
                        which is based on an individual's 
                        separation from service occurring on or 
                        after the effective date of this 
                        section; and
                            (ii) any service performed by any 
                        such individual before, on, or after 
                        the effective date of this section, 
                        subject to paragraph (2).
            (2) Special rule.--
                    (A) Deposit requirement.--For purposes of 
                determining eligibility for immediate 
                retirement under section 8412(e) of title 5, 
                United States Code, the amendment made by 
                subsection (a)(2) shall, with respect to any 
                service described in subparagraph (B), be 
                disregarded unless there is deposited into the 
                Civil Service Retirement and Disability Fund, 
                with respect to such service, in such time, 
                form, and manner as the Office of Personnel 
                Management by regulation requires, an amount 
                equal to the amount by which--
                            (i) the deductions from pay which 
                        would have been required for such 
                        service if the amendments made by 
                        subsection (a)(2) had been in effect 
                        when such service was performed, 
                        exceeds
                            (ii) the unrefunded deductions or 
                        deposits actually made under subchapter 
                        II of chapter 84 of such title with 
                        respect to such service.
                An amount under this subparagraph shall include 
                interest, computed under paragraphs (2) and (3) 
                of section 8334(e) of such title 5.
                    (B) Prior service described.--This 
                paragraph applies with respect to any service 
                performed by an individual before the effective 
                date of this section as an employee described 
                in section 8401(35)(B) of title 5, United 
                States Code (as amended by subsection (a)(2)).

SEC. 227. DESIGN ORGANIZATION CERTIFICATES.

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

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

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

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

SEC. 228. JUDICIAL REVIEW.

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

SEC. 229. OVERFLIGHT FEES.

    (a) Adoption and Legalization of Certain Rules.--
            (1) Applicability and effect of certain law.--
        Notwithstanding section 141(d)(1) of the Aviation and 
        Transportation Security Act (49 U.S.C. 44901 note), 
        section 45301(b)(1)(B) of title 49, United States Code, 
        is deemed to apply to and to have effect with respect 
        to the authority of the Administrator of the Federal 
        Aviation Administration with respect to the interim 
        final rule and final rule, relating to overflight fees, 
        issued by the Administrator on May 30, 2000, and August 
        13, 2001, respectively.
            (2) Adoption and legalization.--The interim final 
        rule and final rule referred to in subsection (a), 
        including the fees issued pursuant to those rules, are 
        adopted, legalized, and confirmed as fully to all 
        intents and purposes as if the same had, by prior Act 
        of Congress, been specifically adopted, authorized, and 
        directed as of the date those rules were originally 
        issued.
            (3) Fees to which applicable.--This subsection 
        applies to fees assessed after November 19, 2001, and 
        before April 8, 2003, and fees collected after the 
        requirements of subsection (b) have been met.
    (b) Deferred Collection of Fees.--The Administrator shall 
defer collecting fees under section 45301(a)(1) of title 49, 
United States Code, until the Administrator (1) reports to 
Congress responding to the issues raised by the court in Air 
Transport Association of Canada v. Federal Aviation 
Administration and Administrator, FAA, decided on April 8, 
2003, and (2) consultswith users and other interested parties 
regarding the consistency of the fees established under such section 
with the international obligations of the United States.
    (c) Enforcement.--The Administrator shall take an 
appropriate enforcement action under subtitle VII of title 49, 
United States Code, against any user that does not pay a fee 
under section 45301(a)(1) of such title.

                    TITLE III--ENVIRONMENTAL PROCESS

             Subtitle A--Aviation Development Streamlining

SEC. 301. SHORT TITLE.

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

SEC. 302. FINDINGS.

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

SEC. 303. AIRPORT CAPACITY ENHANCEMENT.

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

SEC. 304. AVIATION PROJECT STREAMLINING.

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

          ``SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

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

    ``(a) Aviation Project Review Process.--The Secretary of 
Transportation shall develop and implement an expedited and 
coordinated environmental review process for airport capacity 
enhancement projects at congested airports, aviation safety 
projects, and aviation security projects that--
            ``(1) provides for better coordination among the 
        Federal, regional, State, and local agencies concerned 
        with the preparation of environmental impact statements 
        or environmental assessments under the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.);
            ``(2) provides that all environmental reviews, 
        analyses, opinions, permits, licenses, and approvals 
        that must be issued or made by a Federal agency or 
        airport sponsor for such a project will be conducted 
        concurrently, to the maximum extent practicable; and
            ``(3) provides that any environmental review, 
        analysis, opinion, permit, license, or approval that 
        must be issued or made by a Federal agency or airport 
        sponsor for such a project will be completed within a 
        time period established by the Secretary, in 
        cooperation with the agencies identified under 
        subsection (d) with respect to the project.
    ``(b) Aviation Projects Subject to a Streamlined 
Environmental Review Process.--
            ``(1) Airport capacity enhancement projects at 
        congested airports.--An airport capacity enhancement 
        project at a congested airport shall be subject to the 
        coordinated and expedited environmental review process 
        requirements set forth in this section.
            ``(2) Aviation safety and aviation security 
        projects.--
                    ``(A) In general.--The Administrator of the 
                Federal Aviation Administration may designate 
                an aviation safety project or aviation security 
                project for priority environmental review. The 
                Administrator may not delegate this designation 
                authority. A designated project shall be 
                subject to the coordinated and expedited 
                environmental review process requirements set 
                forth in this section.
                    ``(B) Project designation criteria.--The 
                Administrator shall establish guidelines for 
                the designation of an aviation safety project 
                or aviation security project for priority 
                environmental review. Such guidelines shall 
                provide for consideration of--
                            ``(i) the importance or urgency of 
                        the project;
                            ``(ii) the potential for 
                        undertaking the environmental review 
                        under existing emergency procedures 
                        under the National Environmental Policy 
                        Act of 1969 (42 U.S.C. 4321 et seq.);
                            ``(iii) the need for cooperation 
                        and concurrent reviews by other Federal 
                        or State agencies;
                            ``(iv) the prospect for undue delay 
                        if the project is not designated for 
                        priority review; and
                            ``(v) for aviation security 
                        projects, the views of the Department 
                        of Homeland Security.
    ``(c) High Priority of and Agency Participation in 
Coordinated Reviews.--
            ``(1) High priority for environmental reviews.--
        Each Federal agency with jurisdiction over an 
        environmental review, analysis, opinion, 
permit,license, or approval shall accord any such review, analysis, 
opinion, permit, license, or approval involving an airport capacity 
enhancement project at a congested airport or a project designated 
under subsection (b)(2) the highest possible priority and conduct the 
review, analysis, opinion, permit, license, or approval expeditiously.
            ``(2) Agency participation.--Each Federal agency 
        described in subsection (d) shall formulate and 
        implement administrative, policy, and procedural 
        mechanisms to enable the agency to participate in the 
        coordinated environmental review process under this 
        section and to ensure completion of environmental 
        reviews, analyses, opinions, permits, licenses, and 
        approvals described in subsection (a) in a timely and 
        environmentally responsible manner.
    ``(d) Identification of Jurisdictional Agencies.--With 
respect to each airport capacity enhancement project at a 
congested airport or a project designated under subsection 
(b)(2), the Secretary shall identify, as soon as practicable, 
all Federal and State agencies that may have jurisdiction over 
environmental-related matters that may be affected by the 
project or may be required by law to conduct an environmental-
related review or analysis of the project or determine whether 
to issue an environmental-related permit, license, or approval 
for the project.
    ``(e) State Authority.--Under a coordinated review process 
being implemented under this section by the Secretary with 
respect to a project at an airport within the boundaries of a 
State, the Governor of the State, consistent with State law, 
may choose to participate in such process and provide that all 
State agencies that have jurisdiction over environmental-
related matters that may be affected by the project or may be 
required by law to conduct an environmental-related review or 
analysis of the project or determine whether to issue an 
environmental-related permit, license, or approval for the 
project, be subject to the process.
    ``(f) Memorandum of Understanding.--The coordinated review 
process developed under this section may be incorporated into a 
memorandum of understanding for a project between the Secretary 
and the heads of other Federal and State agencies identified 
under subsection (d) with respect to the project and, if 
applicable, the airport sponsor.
    ``(g) Use of Interagency Environmental Impact Statement 
Teams.--
            ``(1) In general.--The Secretary may utilize an 
        interagency environmental impact statement team to 
        expedite and coordinate the coordinated environmental 
        review process for a project under this section. When 
        utilizing an interagency environmental impact statement 
        team, the Secretary shall invite Federal, State and 
        Tribal agencies with jurisdiction by law, and may 
        invite such agencies with special expertise, to 
        participate on an interagency environmental impact 
        statement team.
            ``(2) Responsibility of interagency environmental 
        impact statement team.--Under a coordinated 
        environmental review process being implemented under 
        this section, the interagency environmental impact 
        statement team shall assist the Federal Aviation 
        Administration in the preparation of the environmental 
        impact statement. To facilitate timely and efficient 
        environmental review, the team shall agree on agency or 
        Tribal points of contact, protocols for communication 
        among agencies, and deadlines for necessary actions by 
        each individual agency (including the review of 
        environmental analyses, the conduct of required 
        consultation and coordination, and the issuance of 
        environmental opinions, licenses, permits, and 
        approvals). The members of the team may formalize their 
        agreement in a written memorandum.
    ``(h) Lead Agency Responsibility.--The Federal Aviation 
Administration shall be the lead agency for projects designated 
under subsection (b)(2) and airport capacity enhancement 
projects at congested airports and shall be responsible for 
defining the scope and content of the environmental impact 
statement, consistent with regulations issued by the Council on 
Environmental Quality. Any other Federal agency or State agency 
that is participating in a coordinated environmental review 
process under this section shall give substantial deference, to 
the extent consistent with applicable law and policy, to the 
aviation expertise of the Federal Aviation Administration.
    ``(i) Effect of Failure To Meet Deadline.--
            ``(1) Notification of congress and ceq.--If the 
        Secretary determines that a Federal agency, State 
        agency, or airport sponsor that is participating in a 
        coordinated review process under this section with 
        respect to a project has not met a deadline established 
        under subsection (a)(3) for the project, the Secretary 
        shall notify, within 30 days of the date of such 
        determination, the Committee on Commerce, Science, and 
        Transportation of the Senate, the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives, the Council on Environmental Quality, 
        and the agency or sponsor involved about the failure to 
        meet the deadline.
            ``(2) Agency report.--Not later than 30 days after 
        date of receipt of a notice under paragraph (1), the 
        agency or sponsor involved shall submit a report to the 
        Secretary, the Committee on Transportation and 
        Infrastructure of the House of Representatives, the 
        Committee on Commerce, Science, and Transportation of 
        the Senate, and the Council on Environmental Quality 
        explaining why the agency or sponsor did not meet the 
        deadline and what actions it intends to take to 
        complete or issue the required review, analysis, 
        opinion, permit, license, or approval.
    ``(j) Purpose and Need.--For any environmental review, 
analysis, opinion, permit, license, or approval that must be 
issued or made by a Federal or State agency that is 
participating in a coordinated review process under this 
section and that requires an analysis of purpose and need for 
the project, the agency, notwithstanding any other provision of 
law, shall be bound by the project purpose and need as defined 
by the Secretary.
    ``(k) Alternatives Analysis.--The Secretary shall determine 
the reasonable alternatives to an airport capacity enhancement 
project at a congested airport or a project designated under 
subsection (b)(2). Any other Federalagency, or State agency 
that is participating in a coordinated review process under this 
section with respect to the project shall consider only those 
alternatives to the project that the Secretary has determined are 
reasonable.
    ``(l) Solicitation and Consideration of Comments.--In 
applying subsections (j) and (k), the Secretary shall solicit 
and consider comments from interested persons and governmental 
entities in accordance with the National Environmental Policy 
Act of 1969 (42 U.S.C. 4371 et seq.).
    ``(m) Monitoring by Task Force.--The Transportation 
Infrastructure Streamlining Task Force, established by 
Executive Order 13274 (67 Fed. Reg. 59449; relating to 
environmental stewardship and transportation infrastructure 
project reviews), may monitor airport projects that are subject 
to the coordinated review process under this section.

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

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

``Sec. 47173. Airport funding of FAA staff

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

``Sec. 47174. Authorization of appropriations

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

``Sec. 47175. Definitions

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

           ``SUBCHAPTER III--AVIATION DEVELOPMENT STREAMLINING

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

SEC. 305. ELIMINATION OF DUPLICATIVE REQUIREMENTS.

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

SEC. 306. CONSTRUCTION OF CERTAIN AIRPORT CAPACITY PROJECTS.

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

SEC. 307. ISSUANCE OF ORDERS.

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

SEC. 308. LIMITATIONS.

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

SEC. 309. RELATIONSHIP TO OTHER REQUIREMENTS.

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

                       Subtitle B--Miscellaneous

SEC. 321. REPORT ON LONG-TERM ENVIRONMENTAL IMPROVEMENTS.

    (a) In General.--The Secretary of Transportation, in 
consultation with the Administrator of the National Aeronautics 
and Space Administration, shall conduct a study of ways to 
reduce aircraft noise and emissions and to increase aircraft 
fuel efficiency. The study shall--
            (1) explore new operational procedures for aircraft 
        to achieve those goals;
            (2) identify both near-term and long-term options 
        to achieve those goals;
            (3) identify infrastructure changes that would 
        contribute to attainment of those goals;
            (4) identify emerging technologies that might 
        contribute to attainment of those goals;
            (5) develop a research plan for application of such 
        emerging technologies, including new combustor and 
        engine design concepts and methodologies for designing 
        high bypass ratio turbofan engines so as to minimize 
        the effects on climate change per unit of production of 
        thrust and flight speed; and
            (6) develop an implementation plan for exploiting 
        such emerging technologies to attain those goals.
    (b) Report.--The Secretary shall transmit a report on the 
study to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure within 1 year after the date 
of enactment of this Act.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary $500,000 for fiscal year 
2004 to carry out this section.

SEC. 322. NOISE DISCLOSURE.

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

SEC. 323. OVERFLIGHTS OF NATIONAL PARKS.

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

SEC. 324. NOISE EXPOSURE MAPS.

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

SEC. 325. IMPLEMENTATION OF CHAPTER 4 NOISE STANDARDS.

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

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

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

SEC. 327. SPECIAL RULE FOR AIRPORT IN ILLINOIS.

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

                 TITLE IV--AIRLINE SERVICE IMPROVEMENTS

                Subtitle A--Small Community Air Service

SEC. 401. EXEMPTION FROM HOLD-IN REQUIREMENTS.

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

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

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

SEC. 403. JOINT PROPOSALS.

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

SEC. 404. ESSENTIAL AIR SERVICE AUTHORIZATION.

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

SEC. 405. COMMUNITY AND REGIONAL CHOICE PROGRAMS.

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

``Sec. 41745. Community and regional choice programs

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

SEC. 406. CODE-SHARING PILOT PROGRAM.

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

SEC. 407. TRACKING SERVICE.

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

``Sec. 41746. Tracking service

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

SEC. 408. EAS LOCAL PARTICIPATION PROGRAM.

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

``Sec. 41747. EAS local participation program

    ``(a) In General.--The Secretary of Transportation shall 
establish a pilot program under which not more than 10 
designated essential air service communities located in 
proximity to hub airports are required to assume 10 percent of 
their essential air service subsidy costs for a 4-year period.
    ``(b) Designation of Communities.--
            ``(1) In general.--The Secretary may not designate 
        any community under this section unless it is located 
        within 100 miles by road of a hub airport and is not 
        located in a noncontiguous State. In making the 
        designation, the Secretary may take into consideration 
        the total traveltime between a community and the 
        nearest hub airport, taking into account terrain, 
        traffic, weather, road conditions, and other relevant 
        factors.
            ``(2) One community per state.--The Secretary may 
        not designate--
                    ``(A) more than 1 community per State under 
                this section; or
                    ``(B) a community in a State in which 
                another community that is eligible to 
                participate in the essential air service 
                program has elected not to participate in the 
                essential air service program as part of a 
                pilot program under section 41745.
    ``(c) Appeal of Designation.--A community may appeal its 
designation under this section. The Secretary may withdraw the 
designation of a community under this section based on--
            ``(1) the airport sponsor's ability to pay; or
            ``(2) the relative lack of financial resources in a 
        community, based on a comparison of the median income 
        of the community with other communities in the State.
    ``(d) Non-Federal Share.--
            ``(1) Non-federal amounts.--For purposes of this 
        section, the non-Federal portion of the essential air 
        service subsidy may be derived from contributions in 
        kind, or through reduction in the amount of the 
        essential air service subsidy through reduction of air 
        carrier costs, increased ridership, prepurchase of 
        tickets, or other means. The Secretary shall provide 
        assistance to designated communities in identifying 
        potential means of reducing the amount of the subsidy 
        without adversely affecting air transportation service 
        to the community.
            ``(2) Application with other matching 
        requirements.--This section shall apply to the Federal 
        share of essential air service provided this 
        subchapter, after the application of any other non-
        Federal share matching requirements imposed by law.
    ``(e) Eligibility for Other Programs Not Affected.--Nothing 
in this section affects the eligibility of a community or 
consortium of communities, an airport sponsor, or any other 
person to participate in any program authorized by this 
subchapter. A community designated under this section may 
participate in any program (including pilot programs) 
authorized by this subchapter for which it is otherwise 
eligible--
            ``(1) without regard to any limitation on the 
        number of communities that may participate in that 
        program; and
            ``(2) without reducing the number of other 
        communities that may participate in that program.
    ``(f) Secretary to Report to Congress on Impact.--The 
Secretary shall transmit a report to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives on--
            ``(1) the economic condition of communities 
        designated under this section before their designation;
            ``(2) the impact of designation under this section 
        on such communities at the end of each of the 3 years 
        following their designation; and
            ``(3) the impact of designation on air traffic 
        patterns affecting air transportation to and from 
        communities designated under this section.''.
    (b) Conforming Amendment.--The analysis for subchapter II 
of chapter 417 is amended by adding at the end the following:

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

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

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

SEC. 410. INCENTIVE PROGRAM.

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

``Sec. 41748. Marketing program

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

``41748. Marketing program.''.

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

    (a) Establishment.--There is established a commission to be 
known as the ``National Commission on Small Community Air 
Service'' (in this section referred to as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed 
        of nine members of whom--
                    (A) three members shall be appointed by the 
                Secretary;
                    (B) two members shall be appointed by the 
                majority leader of the Senate;
                    (C) one member shall be appointed by the 
                minority leader of the Senate;
                    (D) two members shall be appointed by the 
                Speaker of the House of Representatives; and
                    (E) one member shall be appointed by the 
                minority leader of the House of 
                Representatives.
            (2) Qualifications.--Of the members appointed by 
        the Secretary under paragraph (1)(A)--
                    (A) one member shall be a representative of 
                a regional airline;
                    (B) one member shall be a representative of 
                a small hub airport or nonhub airport (as such 
                terms are defined in section 40102 of title 49, 
                United States Code); and
                    (C) one member shall be a representative of 
                a State aviation agency.
            (3) Terms.--Members shall be appointed for the life 
        of the Commission.
            (4) Vacancies.--A vacancy in the Commission shall 
        be filled in the manner in which the original 
        appointment was made.
            (5) Travel expenses.--Members shall serve without 
        pay but shall receive travel expenses, including per 
        diem in lieu of subsistence, in accordance with 
        subchapter I of chapter 57 of title 5, United States 
        Code.
    (c) Chairperson.--The Secretary shall designate, from among 
the individuals appointed under subsection (b)(1), an 
individual to serve as chairperson of the Commission.
    (d) Duties.--
            (1) Study.--The Commission shall undertake a study 
        of--
                    (A) the challenges faced by small 
                communities in the United States with respect 
                to retaining and enhancing their scheduled 
                commercial air service; and
                    (B) whether the existing Federal programs 
                charged with helping small communities are 
                adequate for them to retain and enhance their 
                existing air service.
            (2) Essential air service communities.--In 
        conducting the study, the Commission shall pay 
        particular attention to the state of scheduled 
        commercial air service in communities currently served 
        by the essential air service program.
    (e) Recommendations.--Based on the results of the study 
under subsection (d), the Commission shall make such 
recommendations as it considers necessary to--
            (1) improve the state of scheduled commercial air 
        service at small communities in the United States, 
        especially communities described in subsection (d)(2); 
        and
            (2) improve the ability of small communities to 
        retain and enhance their existing air service.
    (f) Report.--Not later than 6 months after the date on 
which initial appointments of members to the Commission are 
completed, the Commission shall transmit to the President and 
Congress a report on the activities of the Commission, 
including recommendations made by the Commission under 
subsection (e).
    (g) Commission Panels.--The chairperson of the Commission 
shall establish such panels consisting of members of the 
Commission as the chairperson determines appropriate to carry 
out the functions of the Commission.
    (h) Commission Personnel Matters.--
            (1) Staff.--The Commission may appoint and fix the 
        pay of such personnel as it considers appropriate.
            (2) Staff of federal agencies.--Upon request of the 
        chairperson of the Commission, the head of any 
        department or agency of the United States may detail, 
        on a reimbursable basis, any of the personnel of that 
        department or agency to the Commission to assist it in 
        carrying out its duties under this section.
            (3) Other staff and support.--Upon the request of 
        the Commission, or a panel of the Commission, the 
        Secretary shall provide the Commission or panel with 
        professional and administrative staff and other 
        support, on a reimbursable basis, to assist the 
        Commission or panel in carrying out its 
        responsibilities.
    (i) Obtaining Official Data.--The Commission may secure 
directly from any department or agency of the United States 
information (other than information required by any statute of 
the United States to be kept confidential by such department or 
agency) necessary for the Commission to carry out its duties 
under this section. Upon request of the chairperson of the 
Commission, the head of that department or agency shall furnish 
such nonconfidential information to the Commission.
    (j) Termination.--The Commission shall terminate on the 
30th day following the date of transmittal of the report under 
subsection (f).
    (k) Applicability of the Federal Advisory Committee Act.--
The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the Commission.
    (l) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary $250,000 to be used to fund 
the Commission.

SEC. 412. SMALL COMMUNITY AIR SERVICE.

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

                       Subtitle B--Miscellaneous

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

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

SEC. 422. DELAY REDUCTION ACTIONS.

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

``Sec. 41722. Delay reduction actions

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

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

SEC. 423. COLLABORATIVE DECISIONMAKING PILOT PROGRAM.

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

``Sec. 40129. Collaborative decisionmaking pilot program

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

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

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

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

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

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

SEC. 426. DEFINITION OF COMMUTER AIRCRAFT.

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

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

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

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

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

                        TITLE V--AVIATION SAFETY

SEC. 501. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS.

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

SEC. 502. RUNWAY SAFETY STANDARDS.

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

``Sec. 44727. Runway safety areas

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

``44727. Runway safety areas.''.

SEC. 503. CIVIL PENALTIES.

    (a) Increase in Maximum Civil Penalty.--Section 46301(a) is 
amended--
            (1) by striking ``$1,000'' in paragraph (1) and 
        inserting ``$25,000 (or $1,100 if the person is an 
        individual or small business concern)'';
            (2) by striking ``or'' the last place it appears in 
        paragraph (1)(A);
            (3) by striking ``section)'' in paragraph (1)(A) 
        and inserting ``section), or section 47133'';
            (4) by striking paragraphs (2), (3), (6), and (7) 
        and redesignating paragraphs (4), (5), and (8) as 
        paragraphs (2), (3), and (4), respectively;
            (5) by striking ``41715'' each place it appears in 
        paragraph (2), as redesignated, and inserting 
        ``41719'';
            (6) by striking ``paragraphs (1) and (2)'' in 
        paragraph (4), as redesignated, and inserting 
        ``paragraph (1)''; and
            (7) by adding at the end the following:
            ``(5) Penalties applicable to individuals and small 
        business concerns.--
                    ``(A) An individual (except an airman 
                serving as an airman) or small business concern 
                is liable to the Government for a civil penalty 
                of not more than $10,000 for violating--
                            ``(i) chapter 401 (except sections 
                        40103(a) and (d), 40105, 40106(b), 
                        40116, and 40117), section 44502 (b) or 
                        (c), chapter 447 (except sections 
                        44717-44723), or chapter 449 (except 
                        sections 44902, 44903(d), 44904, and 
                        44907-44909) of this title; or
                            ``(ii) a regulation prescribed or 
                        order issued under any provision to 
                        which clause (i) applies.
                    ``(B) A civil penalty of not more than 
                $10,000 may be imposed for each violation under 
                paragraph (1) committed by an individual or 
                small business concern related to--
                            ``(i) the transportation of 
                        hazardous material;
                            ``(ii) the registration or 
                        recordation under chapter 441 of an 
                        aircraft not used to provide air 
                        transportation;
                            ``(iii) a violation of section 
                        44718(d), relating to the limitation on 
                        construction or establishment of 
                        landfills;
                            ``(iv) a violation of section 
                        44725, relating to the safe disposal of 
                        life-limited aircraft parts; or
                            ``(v) a violation of section 40127 
                        or section 41705, relating to 
                        discrimination.
                    ``(C) Notwithstanding paragraph (1), the 
                maximum civil penalty for a violation of 
                section 41719 committed by an individual or 
                small business concern shall be $5,000 instead 
                of $1,000.
                    ``(D) Notwithstanding paragraph (1), the 
                maximum civil penalty for a violation of 
                section 41712 (including a regulation 
                prescribed or order issued under such section) 
                or any other regulation prescribed by the 
                Secretary by an individual or small business 
                concern that is intended to afford consumer 
                protection to commercial air transportation 
                passengers shall be $2,500 for each 
                violation.''.
    (b) Increase in Limit on Administrative Authority and Civil 
Penalty.--Section 46301(d) is amended--
            (1) by striking ``more than $50,000;'' in paragraph 
        (4)(A) and inserting ``more than--
                            ``(i) $50,000 if the violation was 
                        committed by any person before the date 
                        of enactment of the Vision 100--Century 
                        of Aviation Reauthorization Act;
                            ``(ii) $400,000 if the violation 
                        was committed by a person other than an 
                        individual or small business concern on 
                        or after that date; or
                            ``(iii) $50,000 if the violation 
                        was committed by an individual or small 
                        business concern on or after that 
                        date;''; and
            (2) by striking ``is $50,000.'' in paragraph (8) 
        and inserting ``is--
                    ``(A) $50,000 if the violation was 
                committed by any person before the date of 
                enactment of the Vision 100--Century of 
                Aviation Reauthorization Act;
                    ``(B) $400,000 if the violation was 
                committed by a person other than an individual 
                or small business concern on or after that 
                date; or
                    ``(C) $50,000 if the violation was 
                committed by an individual or small business 
                concern on or after that date.''.
    (c) Small Business Concern Defined.--Section 46301 is 
amended by adding at the end the following:
    ``(i) Small business concern defined.--In this section, the 
term `small business concern' has the meaning given that term 
in section 3 of the Small Business Act (15 U.S.C. 632).''.
    (d) Conforming Amendments.--Title 49 is amended--
            (1) in section 41705(b) by striking 
        ``46301(a)(3)(E)'' and inserting ``46301''; and
            (2) in section 46304(a) by striking ``, (2), or 
        (3)''.

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

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

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

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

SEC. 506. FAA INSPECTOR TRAINING.

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

SEC. 507. AIR TRANSPORTATION OVERSIGHT SYSTEM PLAN.

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

                      TITLE VI--AVIATION SECURITY

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

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

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

    ``(a) Orders.--The Administrator of Federal Aviation 
Administration shall issue an order amending, modifying, 
suspending, or revoking any part of a certificate issued under 
this title if the Administrator is notified by the Under 
Secretary for Border and Transportation Security of the 
Department of Homeland Security that the holder of the 
certificate poses, or is suspected of posing, a risk of air 
piracy or terrorism or a threat to airline or passenger safety. 
If requested by the Under Secretary, the order shall be 
effective immediately.
    ``(b) Hearings for Citizens.--An individual who is a 
citizen of the United States who is adversely affected by an 
order of the Administrator under subsection (a) is entitled to 
a hearing on the record.
    ``(c) Hearings.--When conducting a hearing under this 
section, the administrative law judge shall not be bound by 
findings of fact or interpretations of laws and regulations of 
the Administrator or the Under Secretary.
    ``(d) Appeals.--An appeal from a decision of an 
administrative law judge as the result of a hearing under 
subsection (b) shall be made to the Transportation Security 
Oversight Board established by section 115. The Board shall 
establish a panel to review the decision. The members of this 
panel (1) shall not be employees of the Transportation Security 
Administration, (2) shall have the level of security clearance 
needed to review the determination made under this section, and 
(3) shall be given access to all relevant documents that 
support that determination. The panel may affirm, modify, or 
reverse the decision.
    ``(e) Review.--A person substantially affected by an action 
of a panel under subsection (d), or the Under Secretary when 
the Under Secretary decides that the action of the panel under 
this section will have a significant adverse impact on carrying 
out this part, may obtain review of the order under section 
46110. The Under Secretary and the Administrator shall be made 
a party to the review proceedings. Findings of fact of the 
panel are conclusive if supported by substantial evidence.
    ``(f) Explanation of Decisions.--An individual who 
commences an appeal under this section shall receive a written 
explanation of the basis for the determination or decision and 
all relevant documents that support that determination to the 
maximum extent that the national security interests of the 
United States and other applicable laws permit.
    ``(g) Classified Evidence.--
            ``(1) In general.--The Under Secretary, in 
        consultation with the Administrator and the Director of 
        Central Intelligence, shall issue regulations to 
        establish procedures by which the Under Secretary, as 
        part of a hearing conducted under this section, may 
        provide an unclassified summary of classified evidence 
        upon which the order of the Administrator was based to 
        the individual adversely affected by the order.
            ``(2) Review of classified evidence by 
        administrative law judge.--
                    ``(A) Review.--As part of a hearing 
                conducted under this section, if the order of 
                the Administrator issued under subsection (a) 
                is based on classified information (as defined 
                in section 1(a) of the Classified Information 
                Procedures Act (18 U.S.C. App.), such 
                information may be submitted by the Under 
                Secretary to the reviewing administrative law 
                judge, pursuant to appropriate security 
                procedures, and shall be reviewed by the 
                administrative law judge ex parte and in 
                camera.
                    ``(B) Security clearances.--Pursuant to 
                existing procedures and requirements, the Under 
                Secretary shall, in coordination, as necessary, 
                with the heads of other affected departments or 
                agencies, ensure that administrative law judges 
                reviewing orders of the Administrator under 
                this section possess security clearances 
                appropriate for their work under this section.
            ``(3) Unclassified summaries of classified 
        evidence.--As part of a hearing conducted under this 
        section and upon the request of the individual 
        adversely affected by an order of the Administrator 
        under subsection (a), the Under Secretary shall provide 
        to the individual and reviewing administrative law 
        judge, consistent with the procedures established under 
        paragraph (1), an unclassified summary ofany classified 
information upon which the order of the Administrator is based.''.
    (b) Conforming Amendment.--The analysis for chapter 461 is 
amended by adding at the end the following:

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

SEC. 602. JUSTIFICATION FOR AIR DEFENSE IDENTIFICATION ZONE.

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

SEC. 603. CREW TRAINING.

    Section 44918 is amended to read as follows:

``Sec. 44918. Crew training

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

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

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

SEC. 605. AIRPORT SECURITY IMPROVEMENT PROJECTS.

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

``Sec. 44923. Airport security improvement projects

    ``(a) Grant Authority.--Subject to the requirements of this 
section, the Under Secretary for Border and Transportation 
Security of the Department of Homeland Security may make grants 
to airport sponsors--
            ``(1) for projects to replace baggage conveyer 
        systems related to aviation security;
            ``(2) for projects to reconfigure terminal baggage 
        areas as needed to install explosive detection systems;
            ``(3) for projects to enable the Under Secretary to 
        deploy explosive detection systems behind the ticket 
        counter, in the baggage sorting area, or in line with 
        the baggage handling system; and
            ``(4) for other airport security capital 
        improvement projects.
    ``(b) Applications.--A sponsor seeking a grant under this 
section shall submit to the Under Secretary an application in 
such form and containing such information as the Under 
Secretary prescribes.
    ``(c) Approval.--The Under Secretary, after consultation 
with the Secretary of Transportation, may approve an 
application of a sponsor for a grant under this section only if 
the Under Secretary determines that the project will improve 
security at an airport or improve the efficiency of the airport 
without lessening security.
    ``(d) Letters of Intent.--
            ``(1) Issuance.--The Under Secretary may issue a 
        letter of intent to a sponsor committing to obligate 
        from future budget authority an amount, not more than 
        the Federal Government's share of the project's cost, 
        for an airport security improvement project (including 
        interest costs and costs of formulating the project).
            ``(2) Schedule.--A letter of intent under this 
        subsection shall establish a schedule under which the 
        Under Secretary will reimburse the sponsor for the 
        Government's share of the project's costs, as amounts 
        become available, if the sponsor, after the Under 
        Secretary issues the letter, carries out the project 
        without receiving amounts under this section.
            ``(3) Notice to under secretary.--A sponsor that 
        has been issued a letter of intent under this 
        subsection shall notify the Under Secretary of the 
        sponsor's intent to carry out a project before the 
        project begins.
            ``(4) Notice to congress.--The Under Secretary 
        shall transmit to the Committees on Appropriations and 
        Transportation and Infrastructure of the House of 
        Representatives and the Committees on Appropriations 
        and Commerce, Science and Transportation of the Senate 
        a written notification at least 3 days before the 
        issuance of a letter of intent under this section.
            ``(5) Limitations.--A letter of intent issued under 
        this subsection is not an obligation of the Government 
        under section 1501 of title 31, and the letter is not 
        deemed to be an administrative commitment for 
        financing. An obligation or administrative commitment 
        may be made only as amounts are provided in 
        authorization and appropriations laws.
            ``(6) Statutory construction.--Nothing in this 
        subsection shall be construed to prohibit the 
        obligation of amounts pursuant to a letter of intent 
        under this subsection in the same fiscal year as the 
        letter of intent is issued.
    ``(e) Federal Share.--
            ``(1) In general.--The Government's share of the 
        cost of a project under this section shall be 90 
        percent for a project at a medium or large hub airport 
        and 95 percent for a project at any other airport.
            ``(2) Existing letters of intent.--The Under 
        Secretary shall revise letters of intent issued before 
        the date of enactment of this section to reflect the 
        cost share established in this subsection with respect 
        to grants made after September 30, 2003.
    ``(f) Sponsor Defined.--In this section, the term `sponsor' 
has the meaning given that term in section 47102.
    ``(g) Applicability of Certain Requirements.--The 
requirements that apply to grants and letters of intent issued 
under chapter 471 (other than section 47102(3)) shall apply to 
grants and letters of intent issued under this section.
    ``(h) Aviation Security Capital Fund.--
            ``(1) In general.--There is established within the 
        Department of Homeland Security a fund to be known as 
        the Aviation Security Capital Fund. The first 
        $250,000,000 derived from fees received under section 
        44940(a)(1) in each of fiscal years 2004 through 2007 
        shall be available to be deposited in the Fund. The 
        Under Secretary shall impose the fee authorized by 
        section 44940(a)(1) so as to collect at least 
        $250,000,000 in each of such fiscal years for deposit 
        into the Fund. Amounts in the Fund shall be available 
        to the Under Secretary to make grants under this 
        section.
            ``(2) Allocations.--Of the amount made available 
        under paragraph (1) for a fiscal year, $125,000,000 
        shall be allocated in such a manner that--
                    ``(A) 40 percent shall be made available 
                for large hub airports;
                    ``(B) 20 percent shall be made available 
                for medium hub airports;
                    ``(C) 15 percent shall be made available 
                for small hub airports and nonhub airports; and
                    ``(D) 25 percent shall be distributed by 
                the Secretary to any airport on the basis of 
                aviation security risks.
            ``(3) Discretionary grants.--Of the amount made 
        available under paragraph (1) for a fiscal year, 
        $125,000,000 shall be used to make discretionary 
        grants, with priority given to fulfilling intentions to 
        obligate under letters of intent issued under 
        subsection (d).
    ``(i) Authorization of Appropriations.--
            ``(1) In general.--In addition to amounts made 
        available under subsection (h), there is authorized to 
        be appropriated to carry out this section $250,000,000 
        for each of fiscal years 2004 through 2007. Such sums 
        shall remain available until expended.
            ``(2) Allocations.--50 percent of amounts 
        appropriated pursuant to this subsection for a fiscal 
        year shall be used for making allocations under 
        subsection (h)(2) and 50 percent of such amounts shall 
        be used for making discretionary grants under 
        subsection (h)(3).''.
    (b) Conforming Amendments.--
            (1) Use of passenger fee funds.--Section 
        44940(a)(1) is amended by inserting after subparagraph 
        (G) the following:
                    ``(H) The costs of security-related capital 
                improvements at airports.
                    ``(I) The costs of training pilots and 
                flight attendants under sections 44918 and 
                44921.''.
            (2) Limitation on collection.--Section 44940(d)(4) 
        is amended by striking ``Act.'' and inserting ``Act or 
        in section 44923.''.
            (3) Chapter analysis.--The analysis for subchapter 
        I of chapter 449 is amended by adding at the end the 
        following:

``44923. Airport security improvement projects.''.

SEC. 606. CHARTER SECURITY.

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

SEC. 607. CAPPS2.

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

SEC. 608. REPORT ON PASSENGER PRESCREENING PROGRAM.

    (a) In General.--Within 90 days after the date of enactment 
of this Act, the Secretary of Homeland Security, after 
consultation with the Attorney General, shall submit a report 
in writing to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on the potential impact of 
the Transportation Security Administration's proposed Computer 
Assisted Passenger Prescreening system, commonly known as 
CAPPS2, on the privacy and civil liberties of United States 
citizens.
    (b) Specific Issues To Be Addressed.--The report shall 
address the following:
            (1) Whether and for what period of time data 
        gathered on individual travelers will be retained, who 
        will have access to such data, and who will make 
        decisions concerning access to such data.
            (2) How the Transportation Security Administration 
        will treat the scores assigned to individual travelers 
        to measure the likelihood they may pose a security 
        threat, including how long such scores will be retained 
        and whether and under what circumstances they may be 
        shared with other governmental, nongovernmental, or 
        commercial entities.
            (3) The role airlines and outside vendors or 
        contractors will have in implementing and operating the 
        system, and to what extent will they have access, or 
        the means to obtain access, to data, scores, or other 
        information generated by the system.
            (4) The safeguards that will be implemented to 
        ensure that data, scores, or other information 
        generated by the system will be used only as officially 
        intended.
            (5) The procedures that will be implemented to 
        mitigate the effect of any errors, and what procedural 
        recourse will be available to passengers who believe 
        the system has wrongly barred them from taking flights.
            (6) The oversight procedures that will be 
        implemented to ensure that, on an ongoing basis, 
        privacy and civil liberties issues will continue to be 
        considered and addressed with high priority as the 
        system is installed, operated, and updated.

SEC. 609. ARMING CARGO PILOTS AGAINST TERRORISM.

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

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

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

SEC. 611. FOREIGN REPAIR STATIONS.

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

``Sec. 44924. Repair station security

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

``44924. Repair station security.''.

SEC. 612. FLIGHT TRAINING.

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

``Sec. 44939. Training to operate certain aircraft

    ``(a) Waiting Period.--A person operating as a flight 
instructor, pilot school, or aviation training centeror subject 
to regulation under this part may provide training in the operation of 
any aircraft having a maximum certificated takeoff weight of more than 
12,500 pounds to an alien (as defined in section 101(a)(3) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) or to any other 
individual specified by the Secretary of Homeland Security only if--
            ``(1) that person has first notified the Secretary 
        that the alien or individual has requested such 
        training and submitted to the Secretary, in such form 
        as the Secretary may prescribe, the following 
        information about the alien or individual:
                    ``(A) full name, including any aliases used 
                by the applicant or variations in spelling of 
                the applicant's name;
                    ``(B) passport and visa information;
                    ``(C) country of citizenship;
                    ``(D) date of birth;
                    ``(E) dates of training; and
                    ``(F) fingerprints collected by, or under 
                the supervision of, a Federal, State, or local 
                law enforcement agency or by another entity 
                approved by the Federal Bureau of Investigation 
                or the Secretary of Homeland Security, 
                including fingerprints taken by United States 
                Government personnel at a United States embassy 
                or consulate; and
            ``(2) the Secretary has not directed, within 30 
        days after being notified under paragraph (1), that 
        person not to provide the requested training because 
        the Secretary has determined that the individual 
        presents a risk to aviation or national security.
    ``(b) Interruption of Training.--If the Secretary of 
Homeland Security, more than 30 days after receiving 
notification under subsection (a) from a person providing 
training described in subsection (a), determines that the 
individual presents a risk to aviation or national security, 
the Secretary shall immediately notify the person providing the 
training of the determination and that person shall immediately 
terminate the training.
    ``(c) Notification.--A person operating as a flight 
instructor, pilot school, or aviation training center or 
subject to regulation under this part may provide training in 
the operation of any aircraft having a maximum certificated 
takeoff weight of 12,500 pounds or less to an alien (as defined 
in section 101(a)(3) of the Immigration and Nationality Act (8 
U.S.C. 1101(a)(3))) or to any other individual specified by the 
Secretary of Homeland Security only if that person has notified 
the Secretary that the individual has requested such training 
and furnished the Secretary with that individual's 
identification in such form as the Secretary may require.
    ``(d) Expedited Processing.--Not later than 60 days after 
the date of enactment of this section, the Secretary shall 
establish a process to ensure that the waiting period under 
subsection (a) shall not exceed 5 days for an alien (as defined 
in section 101(a)(3) of the Immigration and Nationality Act (8 
U.S.C. 1101(a)(3))) who--
            ``(1) holds an airman's certification of a foreign 
        country that is recognized by an agency of the United 
        States, including a military agency, that permits an 
        individual to operate a multi-engine aircraft that has 
        a certificated takeoff weight of more than 12,500 
        pounds;
            ``(2) is employed by a foreign air carrier that is 
        certified under part 129 of title 14, Code of Federal 
        Regulations, and that has a security program approved 
        under section 1546 of title 49, Code of Federal 
        Regulations;
            ``(3) is an individual that has unescorted access 
        to a secured area of an airport designated under 
        section 44936(a)(1)(A)(ii); or
            ``(4) is an individual that is part of a class of 
        individuals that the Secretary has determined that 
        providing aviation training to presents minimal risk to 
        aviation or national security because of the aviation 
        training already possessed by such class of 
        individuals.
    ``(e) Training.--In subsection (a), the term `training' 
means training received from an instructor in an aircraft or 
aircraft simulator and does not include recurrent training, 
ground training, or demonstration flights for marketing 
purposes.
    ``(f) Nonapplicability to Certain Foreign Military 
Pilots.--The procedures and processes required by subsections 
(a) through (d) shall not apply to a foreign military pilot 
endorsed by the Department of Defense for flight training in 
the United States and seeking training described in subsection 
(e) in the United States.
    ``(g) Fee.--
            ``(1) In general.--The Secretary of Homeland 
        Security may assess a fee for an investigation under 
        this section, which may not exceed $100 per individual 
        (exclusive of the cost of transmitting fingerprints 
        collected at overseas facilities) during fiscal years 
        2003 and 2004. For fiscal year 2005 and thereafter, the 
        Secretary may adjust the maximum amount of the fee to 
        reflect the costs of such an investigation.
            ``(2) Offset.--Notwithstanding section 3302 of 
        title 31, any fee collected under this section--
                    ``(A) shall be credited to the account in 
                the Treasury from which the expenses were 
                incurred and shall be available to the 
                Secretary for those expenses; and
                    ``(B) shall remain available until 
                expended.
    ``(h) Interagency Cooperation.--The Attorney General, the 
Director of Central Intelligence, and the Administrator of the 
Federal Aviation Administration shall cooperate with the 
Secretary in implementing this section.
    ``(i) Security Awareness Training for Employees.--The 
Secretary shall require flight schools to conduct a security 
awareness program for flight school employees to increase their 
awareness of suspicious circumstances and activities of 
individuals enrolling in or attending flight school.''.
    (b) Procedures.--
            (1) In general.--Not later than 60 days after the 
        date of enactment of this Act, the Secretary of 
        Homeland Security shall promulgate an interim final 
        rule to implement section 44939 of title 49, United 
        States Code, as amended by subsection (a).
            (2) Use of overseas facilities.--In order to 
        implement section 44939 of title 49, United States 
        Code, as amended by subsection (a), United States 
        Embassies and Consulates that possess appropriate 
        fingerprint collection equipment and personnel 
        certified to capture fingerprints shall provide 
        fingerprint services to aliens covered by that section 
        if the Secretary requires fingerprints in the 
        administration of that section, and shall transmit the 
        fingerprints to the Secretary or other agency 
        designated by the Secretary. The Attorney General and 
        the Secretary of State shall cooperate with the 
        Secretary of Homeland Security in carrying out this 
        paragraph.
            (3) Use of united states facilities.--If the 
        Secretary of Homeland Security requires fingerprinting 
        in the administration of section 44939 of title 49, 
        United States Code, the Secretary may designate 
        locations within the United States that will provide 
        fingerprinting services to individuals covered by that 
        section.
    (c) Effective Date.--The amendment made by subsection (a) 
takes effect on the effective date of the interim final rule 
required by subsection (b)(1).
    (d) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of Homeland Security shall 
submit to the Senate Committee on Commerce, Science, and 
Transportation and the House of RepresentativesCommittee on 
Transportation and Infrastructure a report on the effectiveness of the 
activities carried out under section 44939 of title 49, United States 
Code, in reducing risks to aviation security and national security.

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

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

                      TITLE VII--AVIATION RESEARCH

SEC. 701. AUTHORIZATION OF APPROPRIATIONS.

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

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

    (a)(1) The Administrator of the Federal Aviation 
Administration shall establish a Federal Aviation 
Administration Science and Technology Scholarship Program to 
award scholarships to individuals that is designed to recruit 
and prepare students for careers in the Federal Aviation 
Administration.
    (2) Individuals shall be selected to receive scholarships 
under this section through a competitive process primarily on 
the basis of academic merit, with consideration given to 
financial need and the goal of promoting the participation of 
individuals identified in section 33 or 34 of the Science and 
Engineering Equal Opportunities Act.
    (3) To carry out the Program the Administrator shall enter 
into contractual agreements with individuals selected under 
paragraph (2) under which the individuals agree to serve as 
full-time employees of the Federal Aviation Administration, for 
the period described in subsection (f)(1), in positions needed 
by the Federal Aviation Administration and for which the 
individuals are qualified, in exchange for receiving a 
scholarship.
    (b) In order to be eligible to participate in the Program, 
an individual must--
            (1) be enrolled or accepted for enrollment as a 
        full-time student at an institution of higher 
        education, as a junior or senior undergraduate or 
        graduate student, in an academic field or discipline 
        described in the list made available under subsection 
        (d);
            (2) be a United States citizen or permanent 
        resident; and
            (3) at the time of the initial scholarship award, 
        not be an employee (as defined in section 2105 of title 
        5, United States Code).
    (c) An individual seeking a scholarship under this section 
shall submit an application to the Administrator at such time, 
in such manner, and containing such information, agreements, or 
assurances as the Administrator may require.
    (d) The Administrator shall make publicly available a list 
of academic programs and fields of study for which scholarships 
under the Program may be utilized and shall update the list as 
necessary.
    (e)(1) The Administrator may provide a scholarship under 
the Program for an academic year if the individual applying for 
the scholarship has submitted to the Administrator, as part of 
the application required under subsection (c), a proposed 
academic program leading to a degree in a program or field of 
study on the list made available under subsection (d).
    (2) An individual may not receive a scholarship under this 
section for more than 4 academic years, unless the 
Administrator grants a waiver.
    (3) The dollar amount of a scholarship under this section 
for an academic year shall be determined under regulations 
issued by the Administrator, but shall in no case exceed the 
cost of attendance.
    (4) A scholarship provided under this section may be 
expended for tuition, fees, and other authorized expenses as 
established by the Administrator by regulation.
    (5) The Administrator may enter into a contractual 
agreement with an institution of higher education under which 
the amounts provided for a scholarship under this section for 
tuition, fees, and other authorized expenses are paid directly 
to the institution with respect to which the scholarship is 
provided.
    (f)(1) The period of service for which an individual shall 
be obligated to serve as an employee of the Federal Aviation 
Administration is, except as provided in subsection (h)(2), 24 
months for each academic year for which a scholarship under 
this section is provided.
    (2)(A) Except as provided in subparagraph (B), obligated 
service under paragraph (1) shall begin not later than 60 days 
after the individual obtains the educational degree for which 
the scholarship was provided.
    (B) The Administrator may defer the obligation of an 
individual to provide a period of service under paragraph (1) 
if the Administrator determines that such a deferral is 
appropriate. The Administrator shall prescribe the terms and 
conditions under which a service obligation may be deferred 
through regulation.
    (g)(1) Scholarship recipients who fail to maintain a high 
level of academic standing, as defined by the Administrator by 
regulation, who are dismissed from their educational 
institutions for disciplinary reasons, or who voluntarily 
terminate academic training before graduation from the 
educational program for which the scholarship was awarded, 
shall be in breach of their contractual agreement and, in lieu 
of any service obligation arising under such agreement, shall 
be liable to the United States for repayment within 1 year 
after the date of default of all scholarship funds paid to them 
and to the institution of higher education on their behalf 
under the agreement, except as provided in subsection (h)(2). 
The repayment period may be extended by the Administrator when 
determined to be necessary, as established by regulation.
    (2) Scholarship recipients who, for any reason, fail to 
begin or complete their service obligation after completion of 
academic training, or fail to comply with the terms and 
conditions of deferment established by the Administrator 
pursuant to subsection (f)(2)(B), shall be in breach of their 
contractual agreement. When recipients breach their agreements 
for the reasons stated in the preceding sentence, the recipient 
shall be liable to the United States for an amount equal to--
            (A) the total amount of scholarships received by 
        such individual under this section; plus
            (B) the interest on the amounts of such awards 
        which would be payable if at the time the awards were 
        received they were loans bearing interest at the 
        maximum legal prevailing rate, as determined by the 
        Treasurer of the United States,
multiplied by 3.
    (h)(1) Any obligation of an individual incurred under the 
Program (or a contractual agreement thereunder) for service or 
payment shall be canceled upon the death of the individual.
    (2) The Administrator shall by regulation provide for the 
partial or total waiver or suspension of any obligation of 
service or payment incurred by an individual under the Program 
(or a contractual agreement thereunder) whenever compliance by 
the individual is impossible or would involve extreme hardship 
to the individual, or if enforcement of such obligation with 
respect to the individual would be contrary to the best 
interests of the Government.
    (i) For purposes of this section--
            (1) the term ``cost of attendance'' has the meaning 
        given that term in section 472 of the Higher Education 
        Act of 1965;
            (2) the term ``institution of higher education'' 
        has the meaning given that term in section 101(a) of 
        the Higher Education Act of 1965; and
            (3) the term ``Program'' means the Federal Aviation 
        Administration Science and Technology Scholarship 
        Program established under this section.
    (j)(1) There is authorized to be appropriated to the 
Federal Aviation Administration for the Program $10,000,000 for 
each fiscal year.
    (2) Amounts appropriated under this section shall remain 
available for 2 fiscal years.
    (k) The Administrator may provide temporary internships to 
full-time students enrolled in an undergraduate or post-
graduate program leading to an advanced degree in an aerospace-
related or aviation safety-related field of endeavor.

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

    (a)(1) The Administrator of the National Aeronautics and 
Space Administration shall establish a National Aeronautics and 
Space Administration Science and Technology Scholarship Program 
to award scholarships to individuals that is designed to 
recruit and prepare students for careers in the National 
Aeronautics and Space Administration.
    (2) Individuals shall be selected to receive scholarships 
under this section through a competitive process primarily on 
the basis of academic merit, with consideration given to 
financial need and the goal of promoting the participation of 
individuals identified in section 33 or 34 of the Science and 
Engineering Equal Opportunities Act.
    (3) To carry out the Program the Administrator shall enter 
into contractual agreements with individuals selected under 
paragraph (2) under which the individuals agree to serve as 
full-time employees of the National Aeronautics and Space 
Administration, for the period described in subsection (f)(1), 
in positions needed by the National Aeronautics and Space 
Administration and for which the individuals are qualified, in 
exchange for receiving a scholarship.
    (b) In order to be eligible to participate in the Program, 
an individual must--
            (1) be enrolled or accepted for enrollment as a 
        full-time student at an institution of higher 
        education, as a junior or senior undergraduate or 
        graduate student, in an academic field or discipline 
        described in the list made available under subsection 
        (d);
            (2) be a United States citizen or permanent 
        resident; and
            (3) at the time of the initial scholarship award, 
        not be an employee (as defined in section 2105 of title 
        5, United States Code).
    (c) An individual seeking a scholarship under this section 
shall submit an application to the Administrator at such time, 
in such manner, and containing such information, agreements, or 
assurances as the Administrator may require.
    (d) The Administrator shall make publicly available a list 
of academic programs and fields of study for which scholarships 
under the Program may be utilized and shall update the list as 
necessary.
    (e)(1) The Administrator may provide a scholarship under 
the Program for an academic year if the individual applying for 
the scholarship has submitted to the Administrator, as part of 
the application required under subsection (c), a proposed 
academic program leading to a degree in a program or field of 
study on the list made available under subsection (d).
    (2) An individual may not receive a scholarship under this 
section for more than 4 academic years, unless the 
Administrator grants a waiver.
    (3) The dollar amount of a scholarship under this section 
for an academic year shall be determined under regulations 
issued by the Administrator, but shall in no case exceed the 
cost of attendance.
    (4) A scholarship provided under this section may be 
expended for tuition, fees, and other authorized expenses as 
established by the Administrator by regulation.
    (5) The Administrator may enter into a contractual 
agreement with an institution of higher education under which 
the amounts provided for a scholarship under this section for 
tuition, fees, and other authorized expenses are paid directly 
to the institution with respect to which the scholarship is 
provided.
    (f)(1) The period of service for which an individual shall 
be obligated to serve as an employee of the National 
Aeronautics and Space Administration is, except as provided in 
subsection (h)(2), 24 months for each academic year for which a 
scholarship under this section is provided.
    (2)(A) Except as provided in subparagraph (B), obligated 
service under paragraph (1) shall begin not later than 60 days 
after the individual obtains the educational degree for which 
the scholarship was provided.
    (B) The Administrator may defer the obligation of an 
individual to provide a period of service under paragraph (1) 
if the Administrator determines that such a deferral is 
appropriate. The Administrator shall prescribe the terms and 
conditions under which a service obligation may be deferred 
through regulation.
    (g)(1) Scholarship recipients who fail to maintain a high 
level of academic standing, as defined by the Administrator by 
regulation, who are dismissed from their educational 
institutions for disciplinary reasons, or who voluntarily 
terminate academic training before graduation from the 
educational program for which the scholarship was awarded, 
shall be in breach of their contractual agreement and, in lieu 
of any service obligation arising under such agreement, shall 
be liable to the United States for repayment within 1 year 
after the date of default of all scholarship funds paid to them 
and to the institution of higher education on their behalf 
under the agreement, except as provided in subsection (h)(2). 
The repayment period may be extended by the Administrator when 
determined to be necessary, as established by regulation.
    (2) Scholarship recipients who, for any reason, fail to 
begin or complete their service obligation after completion of 
academic training, or fail to comply with the terms and 
conditions of deferment established by the Administrator 
pursuant to subsection (f)(2)(B), shall be in breach of their 
contractual agreement. When recipients breach their agreements 
for the reasons stated in the preceding sentence, the recipient 
shall be liable to the United States for an amount equal to--
            (A) the total amount of scholarships received by 
        such individual under this section; plus
            (B) the interest on the amounts of such awards 
        which would be payable if at the time the awards were 
        received they were loans bearing interest at the 
        maximum legal prevailing rate, as determined by the 
        Treasurer of the United States,
multiplied by 3.
    (h)(1) Any obligation of an individual incurred under the 
Program (or a contractual agreement thereunder) for service or 
payment shall be canceled upon the death of the individual.
    (2) The Administrator shall by regulation provide for the 
partial or total waiver or suspension of any obligation of 
service or payment incurred by an individual under the Program 
(or a contractual agreement thereunder) whenever compliance by 
the individual is impossible or would involve extreme hardship 
to the individual, or if enforcement of such obligation with 
respect to the individual would be contrary to the best 
interests of the Government.
    (i) For purposes of this section--
            (1) the term ``cost of attendance'' has the meaning 
        given that term in section 472 of the Higher Education 
        Act of 1965;
            (2) the term ``institution of higher education'' 
        has the meaning given that term in section 101(a) of 
        the Higher Education Act of 1965; and
            (3) the term ``Program'' means the National 
        Aeronautics and Space Administration Science and 
        Technology Scholarship Program established under this 
        section.
    (j)(1) There is authorized to be appropriated to the 
National Aeronautics and Space Administration for the Program 
$10,000,000 for each fiscal year.
    (2) Amounts appropriated under this section shall remain 
available for 2 fiscal years.
    (k) The Administrator may provide temporary internships to 
full-time students enrolled in an undergraduate or post-
graduate program leading to an advanced degree in an aerospace-
related or aviation safety-related field of endeavor.

SEC. 704. RESEARCH PROGRAM TO IMPROVE AIRFIELD PAVEMENTS.

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

SEC. 705. ENSURING APPROPRIATE STANDARDS FOR AIRFIELD PAVEMENTS.

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

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

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

SEC. 707. RESEARCH ON AVIATION TRAINING.

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

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

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

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

    (a) Establishment.--(1) The Secretary of Transportation 
shall establish in the Federal Aviation Administration a joint 
planning and development office to manage work related to the 
Next Generation Air Transportation System. The office shall be 
known as the Next Generation Air Transportation System Joint 
Planning and Development Office (in this section referred to as 
the ``Office'').
    (2) The responsibilities of the Office shall include--
            (A) creating and carrying out an integrated plan 
        for a Next Generation Air Transportation System 
        pursuant to subsection (b);
            (B) overseeing research and development on that 
        system;
            (C) creating a transition plan for the 
        implementation of that system;
            (D) coordinating aviation and aeronautics research 
        programs to achieve the goal of more effective and 
        directed programs that will result in applicable 
        research;
            (E) coordinating goals and priorities and 
        coordinating research activities within the Federal 
        Government with United States aviation and aeronautical 
        firms;
            (F) coordinating the development and utilization of 
        new technologies to ensure that when available, they 
        may be used to their fullest potential in aircraft and 
        in the air traffic control system;
            (G) facilitating the transfer of technology from 
        research programs such as the National Aeronautics and 
        Space Administration program and the Department of 
        Defense Advanced Research Projects Agency program to 
        Federal agencies with operational responsibilities and 
        to the private sector; and
            (H) reviewing activities relating to noise, 
        emissions, fuel consumption, and safety conducted by 
        Federal agencies, including the Federal Aviation 
        Administration, the National Aeronautics and Space 
        Administration, the Department of Commerce, and the 
        Department of Defense.
    (3) The Office shall operate in conjunction with relevant 
programs in the Department of Defense, the National Aeronautics 
and Space Administration, the Department of Commerce and the 
Department of Homeland Security. The Secretary of 
Transportation may request assistance from staff from those 
Departments and other Federal agencies.
    (4) In developing and carrying out its plans, the Office 
shall consult with the public and ensure the participation of 
experts from the private sector including representatives of 
commercial aviation, general aviation, aviation labor groups, 
aviation research and development entities, aircraft and air 
traffic control suppliers, and the space industry.
    (b) Integrated Plan.--The integrated plan shall be designed 
to ensure that the Next Generation Air Transportation System 
meets air transportation safety, security, mobility, 
efficiency, and capacity needs beyond those currently included 
in the Federal Aviation Administration's operational evolution 
plan and accomplishes the goals under subsection (c). The 
integrated plan shall include--
            (1) a national vision statement for an air 
        transportation system capable of meeting potential air 
        traffic demand by 2025;
            (2) a description of the demand and the performance 
        characteristics that will be required of the Nation's 
        future air transportation system, and an explanation of 
        how those characteristics were derived, including the 
        national goals, objectives, and policies the system is 
        designed to further, and the underlying socioeconomic 
        determinants, and associated models and analyses;
            (3) a multiagency research and development roadmap 
        for creating the Next Generation Air Transportation 
        System with the characteristics outlined under clause 
        (ii), including--
                    (A) the most significant technical 
                obstacles and the research and development 
                activities necessary to overcome them, 
                including for each project, the role of each 
                Federal agency, corporations, and universities;
                    (B) the annual anticipated cost of carrying 
                out the research and development activities; 
                and
                    (C) the technical milestones that will be 
                used to evaluate the activities; and
            (4) a description of the operational concepts to 
        meet the system performance requirements for all system 
        users and a timeline and anticipated expenditures 
        needed to develop and deploy the system to meet the 
        vision for 2025.
    (c) Goals.--The Next Generation Air Transportation System 
shall--
            (1) improve the level of safety, security, 
        efficiency, quality, and affordability of the National 
        Airspace System and aviation services;
            (2) take advantage of data from emerging ground-
        based and space-based communications, navigation, and 
        surveillance technologies;
            (3) integrate data streams from multiple agencies 
        and sources to enable situational awareness and 
        seamless global operations for all appropriate users of 
        the system, including users responsible for civil 
        aviation, homeland security, and national security;
            (4) leverage investments in civil aviation, 
        homeland security, and national security and build upon 
        current air traffic management and infrastructure 
        initiatives to meet system performance requirements for 
        all system users;
            (5) be scalable to accommodate and encourage 
        substantial growth in domestic and international 
        transportation and anticipate and accommodate 
        continuing technology upgrades and advances;
            (6) accommodate a wide range of aircraft 
        operations, including airlines, air taxis, helicopters, 
        general aviation, and unmanned aerial vehicles; and
            (7) take into consideration, to the greatest extent 
        practicable, design of airport approach and departure 
        flight paths to reduce exposure of noise and emissions 
        pollution on affected residents.
    (d) Reports.--The Administrator of the Federal Aviation 
Administration shall transmit to the Committee on Commerce, 
Science, and Transportation in the Senate and the Committee on 
Transportation and Infrastructureand the Committee on Science 
in the House of Representatives--
            (1) not later than 1 year after the date of 
        enactment of this Act, the integrated plan required in 
        subsection (b); and
            (2) annually at the time of the President's budget 
        request, a report describing the progress in carrying 
        out the plan required under subsection (b) and any 
        changes to that plan.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Office $50,000,000 for each of the 
fiscal years 2004 through 2010.

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

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

SEC. 711. ROTORCRAFT RESEARCH AND DEVELOPMENT INITIATIVE.

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

SEC. 712. AIRPORT COOPERATIVE RESEARCH PROGRAM.

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

                       TITLE VIII--MISCELLANEOUS

SEC. 801. DEFINITIONS.

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

SEC. 802. REPORT ON AVIATION SAFETY REPORTING SYSTEM.

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

SEC. 803. ANCHORAGE AIR TRAFFIC CONTROL.

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

SEC. 804. EXTENSION OF METROPOLITAN WASHINGTON AIRPORTS AUTHORITY.

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

SEC. 805. IMPROVEMENT OF AVIATION INFORMATION COLLECTION.

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

SEC. 806. GOVERNMENT-FINANCED AIR TRANSPORTATION.

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

SEC. 807. AIR CARRIER CITIZENSHIP.

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

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

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

SEC. 809. AVAILABILITY OF AIRCRAFT ACCIDENT SITE INFORMATION.

    (a) Domestic Air Transportation.--Section 41113(b) is 
amended--
            (1) in paragraph (16) by striking ``the air 
        carrier'' the third place it appears; and
            (2) by adding at the end the following:
            ``(17)(A) An assurance that, in the case of an 
        accident that results in significant damage to a 
        manmade 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 manmade 
        structures.--
                    ``(A) In general.--An assurance that, in 
                the case of an accident that results in 
                significant damage to a manmade 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) ofthis section not 
later than 90 days after the date of enactment of this Act.

SEC. 810. NOTICE CONCERNING AIRCRAFT ASSEMBLY.

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

``Sec. 41723. Notice concerning aircraft assembly

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

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

SEC. 811. TYPE CERTIFICATES.

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

SEC. 812. RECIPROCAL AIRWORTHINESS CERTIFICATION.

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

SEC. 813. INTERNATIONAL ROLE OF THE FAA.

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

SEC. 814. FLIGHT ATTENDANT CERTIFICATION.

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

``Sec. 44728. Flight attendant certification

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

``44728. 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. 815. AIR QUALITY IN AIRCRAFT CABINS.

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

SEC. 816. RECOMMENDATIONS CONCERNING TRAVEL AGENTS.

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

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

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

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

SEC. 818. INTERNATIONAL AIR SHOW.

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

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

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

SEC. 820. INTERNATIONAL AIR TRANSPORTATION.

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

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

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

SEC. 822. CHARTER AIRLINES.

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

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

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

SEC. 824. REVIEW OF AIR CARRIER COMPENSATION.

    Not later than 6 months after the date of enactment of this 
Act, the Comptroller General shall submit to Congress a report 
on the criteria and procedures used by the Secretary of 
Transportation under the Air Transportation Safety and System 
Stabilization Act (Public Law 107-42) to compensate air 
carriers after the terrorist attack of September 11, 2001, with 
a particular focus on whether it is appropriate--
            (1) to compensate air carriers for the decrease in 
        value of their aircraft after September 11, 2001; and
            (2) to ensure that comparable air carriers receive 
        comparable percentages of the maximum compensation 
        payable under section 103(b)(2) of such Act (49 U.S.C. 
        40101 note).

SEC. 825. NOISE CONTROL PLAN FOR CERTAIN AIRPORTS.

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

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

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

SEC. 827. PRIVATE AIR CARRIAGE IN ALASKA.

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

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

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

SEC. 829. NAVIGATION FEES.

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

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

SEC. 901. EXTENSION OF EXPENDITURE AUTHORITY.

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

SEC. 902. TECHNICAL CORRECTION TO FLIGHT SEGMENT.

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

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

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

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

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

1. SHORT TITLE

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

2. LENGTH OF AUTHORIZATION

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

3. FINDINGS

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

4. FAA OPERATIONS

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

5. FAA TRAINING FACILITY

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

6. AEROSPACE AND AVIATION LIAISON

House bill
      Directs the President to establish a task force to look 
for ways to ensure that technology developed for military 
aircraft is more quickly and easily transferred to applications 
for improving and modernizing the fleet of civilian aircraft.
Senate amendment
      Section 621. Establishes an office in DOT to coordinate 
research, development of new technologies, transfer of 
technology from research done by NASA and DOD to the private 
sector, review activities related to noise and emissions. One 
time and annual report required. $2 million is authorized over 
2 years.
Conference substitute
      Assigns the newly established Air Transportation System 
Joint Planning and Development Office responsibility to 
facilitate the transfer of technology from research programs 
such as those managed by the National Aeronautics and Space 
Administration and the Department of Defense Advanced Research 
Projects Agency to Federal agencies with operational 
responsibilities, and to the private sector.

7. COMPETITIVENESS OF U.S. JET TRANSPORTATION INDUSTRY

House bill
      No provision.
Senate amendment
      Section 623. Within 6 months the office established above 
shall report on the market developments and government policies 
influencing U.S. competitiveness.
Conference substitute
      Section 819. Senate Amendment with modifications.

8. NEXT GENERATION AIR TRAFFIC CONTROL OFFICE

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

9. TASK FORCE ON FUTURE OF AIR TRANSPORTATION SYSTEM

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

10. APPROACH PROCEDURES

House bill
      Section 101(a) authorizes use of some of the FAA 
operations money to establish approach and departure procedures 
using GPS and ADS-B in order to meet the needs of air ambulance 
services.
Senate amendment
      No provision.
Conference substitute
      In lieu of the House provision, section 103(b) changes 
the expiration date of the current authorizations in paragraphs 
(C), (D), and (E) of section 106(k)(2) to conform to the 4-year 
authorization in this bill. These authorizations encourage the 
Federal Aviation Administration to establish helicopter and 
tiltrotor approach and departure procedures using advanced 
technologies, such as the Global Positioning System and 
automated dependent surveillance, to permit operations in 
adverse weather conditions to meet the needs of general 
aviation, new tiltrotor technology, and air ambulance services.

11. AIR TRAFFIC CONTROLLERS

House bill
      Paragraph (k)(5) in section 101 authorizes some of this 
money to be used to hire additional air traffic controllers in 
order to accommodate the growth in air traffic and address the 
expected increase in retirement of experienced controllers. 
Subsection (c) of section 101 directs the FAA to develop a 
human capital workforce strategy to address the need for more 
air traffic controllers as called for by the General Accounting 
Office.
Senate amendment
      Section 103(b). Requires FAA beginning in FY 2004 budget 
submission and thereafter to include description of controller 
staffing plan including strategies for addressing anticipated 
retirements.
Conference substitute
      Section 221(a) includes Senate section 103(b) but starts 
with 2005 budget submission.
      Section 221(b) adopts subsection (c) of House bill.

12. ALASKAN AVIATION CORRIDORS

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

13. AVIATION SAFETY REPORTING SYSTEM

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

14. BUREAU OF TRANSPORTATION STATISTICS

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

15. AIR NAVIGATION FACILITIES AND EQUIPMENT (F&E)

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

16. GULF OF MEXICO

House bill
      Money is authorized from the F&E account to improve the 
safety and efficiency of air operations in the Gulf of Mexico.
Senate amendment
      Similar provision but worded differently. Money is 
authorized from general fund.
Conference substitute
      House bill.

17. WAKE TURBULENCE

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

18. PRECISION APPROACH LANDING SYSTEMS

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

19. STANDBY POWER EFFICIENCY PROGRAM

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

20. ANCHORAGE AIR TRAFFIC CONTROL FACILITIES

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

21. AIR TRAFFIC CONTROL COLLEGIATE TRAINING INITIATIVE

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

22. RESEARCH

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

23. AVIATION SAFETY WORKFORCE INITIATIVE

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

24. SCHOLARSHIPS

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

25. AIRFIELD PAVEMENT

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

26. CERTIFICATION METHODS

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

27. NEW TECHNOLOGIES

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

28. FAA CENTER FOR EXCELLENCE

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

29. REPORT ON ENVIRONMENTAL IMPROVEMENTS

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

30. AIRPORT IMPROVEMENT PROGRAM (AIP)

House bill
      $3.4 billion in 2004, increasing by $200 million each of 
3 years thereafter. No AIP money for administrative expenses.
Senate amendment
      $3.4 billion in 2004, increasing by $100 million in each 
of 2 years thereafter. Authorizes use of AIP for administrative 
expenses.
Conference substitute
      Senate amendment for the length of the bill (4 years). 
However, the substitute does not authorize use of AIP for 
administrative expenses. The Managers believe that AIP money 
should not be used for research, as that should be done in the 
research account.

31. CONTRACT TOWER PROGRAM

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

32. UNDERSERVED AIRPORTS

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

33. REGIONAL JET LOAN GUARANTEES

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

34. TRUST FUND GUARANTEE

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

35. DESIGN-BUILD

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

36. METROPOLITAN WASHINGTON AIRPORTS AUTHORITY (MWAA)

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

37. WAR RISK INSURANCE

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

38. PILOT PROGRAM FOR INNOVATIVE FINANCING FOR TERMINAL AUTOMATION 
                    REPLACEMENT SYSTEMS

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

39. COST SHARING OF ATC MODERNIZATION PROJECTS

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

40. PROJECT STREAMLINING

House bill
      Provides that the Title may be cited as the ``Airport 
Streamlining Approval Process Act of2003''. Makes a number of 
findings regarding our Nation's major airports and the environmental 
review process for airport capacity projects at congested airports.
Senate amendment
      No provision.
Conference substitute
      Subtitle renamed ``Aviation Development Streamlining.'' 
Provides that the Title may be cited as the ``Aviation 
Streamlining Approval Process Act of 2003''. Findings are the 
same as the House bill.

41. PROMOTION OF NEW RUNWAYS--AIRPORT CAPACITY PROJECTS

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

42. DOT AS LEAD AGENCY

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

43. CATEGORICAL EXCLUSIONS

House bill
      Section 47172, states that not later than 120 days after 
the date of enactment of this section, the Secretary shall 
develop and publish a list of categorical exclusions from the 
requirement that an environmental assessment or an environment 
impact statement be prepared for projects at airports.
Senate amendment
      Requires FAA to report to Senate, within 30 days, on 
current CATEXs and on proposed additional CATEXs. Directs 
Secretary to consider other things outside of NEPA, when 
determining list of proposed CATEXs.
Conference substitute
      In lieu of either the House bill or Senate amendment, the 
Managers agree that the requirement to develop and publish a 
list of categorical exclusions is unnecessary given that the 
FAA already published a list of new categorical exclusions as 
part of their proposed FAA Order 1050.1E, ``Environmental 
Impacts: Policies and Procedures.'' It would therefore be most 
helpful if the FAA finalized this Order. The Managers have set 
a 180-day deadline for the FAA to publish their final FAA Order 
1050.1E. In addition, with regard to airport projects, the 
Managers have set a deadline for the FAA to publish, for public 
comment, the revised FAA Order 5050.4B, ``Airport Environmental 
Handbook,'' and urge the FAA to finalize this Order as soon as 
practicable.

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

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

45. AIRPORT REVENUE TO PAY FOR MITIGATION

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

46. AIRPORT FUNDING OF FAA STAFF

House bill
      Section 47175, subsection (a) provides that FAA may 
accept funds from an airport to hire additional staff or obtain 
the services of consultants to facilitate the timely 
processing, review, and completion of environmental documents 
associated with an airport development project.
      Subsection (b) allows the Administrator, with agreement 
of the airport, to transfer its entitlement funds to the 
account used by FAA for activities described in subsection (a).
      Subsection (c) states that, notwithstanding section 3302 
of title 31, any funds accepted under this section, except 
funds transferred pursuant to subsection (b) shall (1) be 
credited as offsetting collections to the account that finances 
the activities and services for which the funds are accepted; 
(2) be available for expenditure only to pay the costs of 
activities and services for which the funds are accepted; and 
(3) remain available until expended.
      Subsection (d) provides that no funds may be accepted 
pursuant to subsection (a), or transferred under subsection 
(b), ensures that airport or AIP money is utilized only to 
provide additional funds for environmental staff, not merely 
replace funds from the FAA's operating account that would have 
been provided for this purpose in any event.
Senate amendment
      Section 47706, similar provision but provides for a pilot 
program and establishes a process with much more specific 
requirements. Also, does not allow airports to use AIP for this 
purpose.
Conference substitute
      House bill and Senate Amendment. This program should be a 
permanent program and airports should be allowed to use AIP 
entitlement funds to fund environmental staff. However, this 
provision is designed to ensure that airport or AIP money is 
utilized only to provide additional funds for environmental 
staff, and not merely to replace funds in the FAA's operating 
account that would have been provided for this purpose in any 
event.

47. AUTHORIZATION FOR ENVIRONMENTAL REVIEWS

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

48. STREAMLINING OF SAFETY AND SECURITY PROJECTS

House bill
      Section 47177, allows, in subsection (a), the 
Administrator of the Federal Aviation Administration to 
designate an aviation safety or aviation security project for 
priority environmental review. The Administrator is not allowed 
to delegate this designation authority.
      Subsection (b) directs the Administrator to establish 
guidelines for the designation of an aviation safety or 
aviation security project for priority environmental review. 
The guidelines must include consideration of, (1) the 
importance or urgency of the project; (2) the potential for 
undertaking the environmental review under existing emergency 
procedures under the National Environmental Policy Act; (3) the 
need for cooperation and concurrent reviews by other Federal or 
State agencies; and (4) the prospect for undue delay if the 
project is not designated for priority review.
      Subsection (c) sets forth the procedures for coordinated 
environmental reviews. Paragraph (1) directs the Administrator, 
in consultation with the heads of affected agencies, to 
establish specific timelines for coordinated environmental 
reviews of an aviation safety or aviation security projects. 
The timelines shall be consistent with timelines established in 
existing laws and regulations. Also, this subsection directs 
each Federal agency with responsibility for project 
environmental reviews, analyses, opinions,permits, licenses, 
and approvals to accord any such review a high priority and to conduct 
the review expeditiously and, to the maximum extent possible, 
concurrently with other such reviews. Paragraph (2) directs each 
Federal agency identified under subsection (c) to formulate and 
implement administrative, policy, and procedural mechanisms to enable 
the agency to ensure completion of environmental reviews, in a timely 
and environmentally responsible manner.
      Subsection (d) provides for State participation. 
Paragraph (1) states that if a priority environmental review 
process is being implemented with respect to a project within 
the boundaries of a State with State environmental requirements 
and approvals, the Administrator must invite the State to 
participate in the process. Paragraph (2) allows that a State 
invited to participate in a priority environmental review 
process, consistent with State law, may choose to participate 
and may direct that all State agencies, which have jurisdiction 
to conduct an environmental review or analysis of the project, 
be subject to the coordinated review process.
      Subsection (e) sets forth the procedures for when a 
Federal agency or participating State fail to give priority 
review. Paragraph (1) provides that if the Secretary of 
Transportation 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, provides a list of 
definitions of terms used in the subchapter, including terms 
``congested airport'' and ``Airport Capacity Enhancement 
Project.''
Senate amendment
      Section 47707, provides definition of National Capacity 
Project.
Conference substitute
      House bill. The Managers combined House bill section 
47177, which includes the procedures for an expedited, 
coordinated environmental review process for aviation safety 
and aviation security projects, with House bill section 47171, 
the procedures for airport capacity enhancement projects at 
congested airports. The Managers believe that environmental 
reviews for these types of projects should be streamlined in 
the same way that airport capacity enhancement projects at 
congested airports are streamlined. Therefore, all processes 
and procedures applicable to airport capacity enhancement 
projects at congested airports apply to designated aviation 
safety or aviation security projects. The Managers adopted the 
House bill definitions of terms in both Sections 47177(g) and 
47178.

49. GOVERNOR'S CERTIFICATE

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

50. NOISE MITIGATION NEAR A CONGESTED AIRPORT

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

51. STREAMLINING LIMITATIONS AND RELATIONSHIP TO OTHER REQUIREMENTS

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

52. ILLINOIS

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

53. MANAGEMENT ADVISORY COMMITTEE MEMBERS

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

54. REORGANIZATION OF THE AIR TRAFFIC SERVICES SUBCOMMITTEE

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

55. CLARIFICATION OF THE RESPONSIBILITIES OF THE CHIEF OPERATING 
                    OFFICER

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

56. SECTION WHISTLEBLOWER PROTECTION

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

57. SMALL BUSINESS OMBUDSMAN

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

58. FAA PURCHASE CARDS

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

59. IMPROVEMENT OF AVIATION INFORMATION COLLECTION

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

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

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

61. DEFINITIONS

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

62. CLARIFICATIONS TO PROCUREMENT AUTHORITY

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

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

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

64. STREAMLINING OF THE PASSENGER FACILITY FEE PROGRAM

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

65. PFCS AND MILITARY CHARTERS

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

66. USING PFC REVENUE FOR GROUND ACCESS PROJECTS

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

67. FINANCIAL MANAGEMENT OF PASSENGER FACILITY FEES

House bill
      This section requires airlines to place PFC revenue that 
they collect in a separate account so that the airport for 
which the PFC was collected will be assured of receiving its 
money should the airline go out of business during the interim 
period between the time that the PFC was collected and the time 
it is remitted to the airport.
Senate amendment
      No provision.
Conference substitute
      Section 124. House bill, but limited to air carriers 
filing for bankruptcy after the date of enactment. These air 
carriers would only have to segregate PFC money, and would not 
be required to put that money in an escrow account. This 
provision is in addition to the requirements already in 49 
U.S.C. 40117(g)(4).

68. MAJOR RUNWAY PROJECTS

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

69. NOISE DISCLOSURE TO HOME BUYERS

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

70. CLARIFICATION OF FLY AMERICA ACT

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

71. AIRLINE CITIZENSHIP

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

72. AIR CARGO IN ALASKA

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

73. OVERFLIGHTS OF NATIONAL PARKS

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

74. DELAY REDUCTION MEETINGS

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

75. COLLABORATIVE DECISION MAKING PILOT PROGRAM

House bill
      Requires a pilot program to be established within 90 days 
that would authorize airlines to discuss changes in flight 
schedules in the event of a capacity reduction event.
      States that the pilot program will last for 2 years after 
it is established.
      Subsection (c) directs FAA to issue guidelines for the 
program that, at least, define when a capacity reduction event 
exists that would warrant the use of collaborative decision 
making among airlines.
      States that when the FAA determines that a capacity 
reduction event exists at an airport, it may permit airlines to 
meet and discuss their schedules for up to 24 hours in order to 
use the available air traffic capacity most effectively. The 
FAA shall monitor these discussions.
      Directs the FAA to choose 3 airports to participate in 
the program within 30 days after establishing the program. The 
airports chosen should be those with the most delays where 
collaborative decision-making could help reduce delays there 
and throughout the Nation.
      States which airlines are eligible to participate.
      Permits the FAA to modify or cancel the program or 
prevent an airline from participating if it finds that the 
purposes of the program are not being furthered or there is an 
adverse impact on competition.
      Requires FAA and DOT to evaluate the impact of the pilot 
program on the use of air traffic capacity, competition, the 
amount of air service to communities, and the impact of delays 
at other airports. Subsection (i) allows the program to be 
extended for an additional 2 years and expanded to 7 more 
airports if warranted by the evaluation in subsection (h).
Senate amendment
      Requires a program to be established to authorize 
airlines to discuss changes in schedules in the event of bad 
weather.
      Within 30 days of enactment, DOT shall establish 
procedures governing airline requests for authorization, 
participation by DOT, and the determination by FAA about the 
impact of bad weather.
      When FAA determines that bad weather is likely to 
adversely and directly affect capacity at an airport for at 
least 3 hours, airlines may discuss flights directly affected 
by the bad weather for up to 24 hours. DOT shall be represented 
at the meetings.
      Allows DOT to exempt airlines from the antitrust laws in 
order to participate in the discussions.
      This provision expires 2 years and 45 days after 
enactment but may be extended for another 2 years. DOT shall 
notify Congress of any such extension.
Conference substitute
      House bill but reduced the number of initial 
participating airports from 3 to 2. The substitute also 
includes requirements that the Attorney General concur with 
certain actions and determinations of the Secretary of DOT. The 
Attorney General may monitor the communications between air 
carriers operating at a participating airport. Also includes 
the authority to grant antitrust immunity. The substitute 
directs the FAA to define and establish limited criteria for a 
``capacity reduction event''. The FAA should work closely with 
the Department of Justice and the Department of Transportation.

76. COMPETITION AND ACCESS

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

77. COMPETITION DISCLOSURE

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

78. AVAILIBILITY OF AIRCRAFT ACCIDENT SITE INFORMATION

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

79. SLOT EXEMPTIONS AT RONALD REAGAN WASHINGTON NATIONAL AIRPORT

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

80. PERIMETER RULES

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

81. COMMUTER AIRCRAFT DEFINITION

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

82. NOTICE CONCERNING AIRCRAFT WHERE AN AIRCRAFT IS ASSEMBLED

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

83. SPECIAL RULE TO PROMOTE AIR SERVICE TO SMALL COMMUNITIES

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

84. ESSENTIAL AIR SERVICE (EAS) MARKETING

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

85. EAS SUBSIDY ADJUSTMENT

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

86. RETURNED EAS FUNDS

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

87. EAS AUTHORIZATION

House bill
      Authorizes $65 million, in addition to the $50 million 
already required to be provided, for the EAS program and for 
the alternative program established by subsection (f) below. It 
also authorizes the hiring of additional employees in DOT to 
manage the program.
Senate amendment
      Authorizes $113 million including the $50 million already 
required.
Conference substitute
      Section 404. House bill, with an additional authorization 
for marketing from the Senate bill. Section 408 authorizes DOT 
to designate 10 communities within 100 miles of a hub to pay a 
10% local share. Only one could be designated per State. Before 
being designated under this section, communities should first 
be given an opportunity to participate in the alternative 
program established by section 405 as that could lead to both 
better service for the community and lower subsidy costs.

88. SUBSIDY TERMINATION

House bill
      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.
Senate amendment
      Notwithstanding the subsidy per passenger limitation in 
the 2000 appropriations act, DOT may not terminate a subsidy to 
a community before the end of 2004, if 2000 ridership at the 
community was sufficient and it received notice in 2003 that 
its ridership is no longer sufficient.
Conference substitute
      No provision.

89. RESUMING SERVICE AT FORMER EAS COMMUNITIES

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

90. JOINT FARES

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

91. ALTERNATIVE EAS

House bill
      Establishes an alternative to the EAS program. Under this 
alternative, rather than receiving service from an airline 
subsidized by DOT, the community could receive a grant from DOT 
to establish and pay for its own service. This could include 
scheduled air service, air taxi service, fractional ownership 
where passengers pay for the service, surface transportation, 
or some other approach approved by DOT. Communities choosing to 
participate in this alternative program could not receive 
service under the established EAS program in the fiscal year in 
which they participated in the alternate program.
Senate amendment
      If money authorized for the marketing program is fully 
appropriated, DOT shall establish a pilot program for no more 
than 10 communities under which the airport may forgo EAS 
subsidies for 10 years in exchange for a grant of double the 
EAS subsidy for airport development. DOT may require major 
airlines serving one of these 10 communities to participate in 
multiple code shares if that would improve air service.
      DOT shall establish a pilot program for no more than 10 
communities to authorize more flights with smaller aircraft if 
safety will not be compromised. For 3 of these airports, DOT 
may establish a pilot program where the subsidy pays for 
alternate transportation and improvement to airport facilities 
if the airport agrees to terminate its participation in this 
pilot program after 1 year.
      DOT may establish a pilot program where airports share 
the cost of providing service over and above the required 
essential air service.
Conference substitute
      Section 405. Substitute is House section 415 (g), with 
alternatives and pilot programs in the Senate bill. The 
fractional ownership provision cannot be used until the FAA 
rule on fractional ownership takes effect. There is no 
provision for a local cost share for those communities 
participating in one of the alternatives or pilot programs 
authorized by this section.

92. TRACKING EAS SERVICE CHANGES

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

93. MILEAGE REQUIREMENTS FOR EAS PROGRAM

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

94. SMALL COMMUNITY OMBUDSMAN

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

95. NATIONAL COMMISSION ON SMALL COMMUNITY AIR SERVICE

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

96. REFUNDED SECURITY FEES

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

97. TYPE CERTIFICATES

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

98. CERTIFICATION OF FOREIGN AVIATION PRODUCTS

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

99. INTERNATIONAL ROLE OF FAA

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

100. REPORT ON OTHER NATIONS' ADVANCEMENTS

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

101. DESIGN ORGANIZATION CERTIFICATES

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

102. COUNTERFEIT OR FRAUDULENTLY REPRESENTED PARTS VIOLATIONS

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

103. RUNWAY SAFETY AREAS

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

104. AVAILABILITY OF MAINTENANCE INFORMATION

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

105. CERTIFICATE ACTIONS IN RESPONSE TO A SECURITY THREAT

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

106. JUDICIAL REVIEW

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

107. CIVIL. PENALTIES

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

108. FLIGHT ATTENDANT CERTIFICATION

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

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

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

110. NOISE EXPOSURE MAPS

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

111. OVERFLIGHT FEES

House bill
      This section makes clear that the changes to the method 
for calculating overflight fees in the Aviation and 
Transportation Security Act were not nullified by the savings 
provision in that Act.
Senate amendment
      The provision has a similar goal but accomplishes it 
differently.
Conference substitute
      Ratifies the interim final rule and final rule issued by 
the FAA on May 30, 2000, and August 13, 2001, respectively. 
This ratification applies to fees collected after the date of 
enactment of the Aviation and Transportation Security Act 
(ATSA) and before the court decision striking down those fees. 
It also applies to the fees that FAA collects in the future 
after it undertakes the actions required by this provision. 
Fees collected after the ATSA fix and before the court decision 
could be retained by FAA. The FAA may not resume collecting 
fees until after the Administrator reports to Congress in 
response to the issues raised in the April 8, 2003 court 
decision; and after the FAA consults with users and other 
interested parties to ensure the fees established are 
consistent with the international obligations of the United 
States. The Managers intend that consultations before the date 
of enactment shall satisfy this requirement.
      In 1996, Congress directed the FAA Administrator to set 
and collect fees for the provision of air traffic control and 
related services for flights that fly over but do not land in 
the United States. This was done to recover a portion of the 
costs of these services from those who receive the benefit of 
the services but who would otherwise pay nothing. Although the 
FAA Administrator has diligently proceeded to recover such 
costs through the imposition of overflight fees, a group of 
foreign airlines has challenged the fees in the United States 
Court of Appeals for the District of Columbia Circuit.
      On April 8, 2003, when the United States Court of Appeals 
for the District of Columbia Circuit issued an opinion in the 
case of Air Transport Association of Canada et al. v. FAA, No. 
01-1446, setting aside and remanding to the FAA the Final Rule 
issued on August 13, 2001 under Section 45301 (b)(1)(B) because 
the Court concluded that, as a result of the generic savings 
provision set forth in Section 141 of the ATSA, Section 119(d) 
of ATSA did not apply to this Final Rule since it was the 
subject of the foreign air carriers' pending challenge at the 
time the ATSA was enacted. It was never the intention of 
Congress that the savings provision set forth in Section 141 
was to have this effect, and this amendment clarifies that fact 
by retroactively applying Section 119(d) to both the Interim 
Final Rule issued on May 30, 2000 as well as the Final Rule 
issued on August 13, 2001.
      Also, to clarify that the FAA has complied with its 
statutory mandate regarding overflight fees in the Interim 
Final Rule and Final Rule and to ensure the fees can be 
collected in the future, the language and authority approved by 
the Court of Appeals for the District of Columbia Circuit in 
Thomas v. Network Solutions, Inc., 176 F. 3d 500 (D.C. Cir 
1999) is adopted hereto retroactively, as well as 
prospectively, to legalize and ratify both the Interim Final 
Rule and the Final Rule, effective as of the dates those rules 
were originally issued by the FAA.
      Although the Court of Appeals has never found a violation 
of international law in the overflight fee rulemakings, there 
have been complaints that international law has not been 
complied with by the FAA. To ensure compliance, the 
Administrator is directed to consult and confer on the concerns 
of foreign governments and users that the fees established by 
this section conform to the international obligations of the 
United Statesand the Administrator is authorized to adjust the 
fees, if necessary, to conform to the obligations of the United States 
under international law.

112. IMPROVEMENT OF CURRICULUM STANDARDS FOR AVIATION MAINTENANCE 
                    TECHNICIANS

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

113. AIR QUALITY IN AIRCRAFT CABINS

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

114. RECOMMENDATIONS CONCERNING TRAVEL AGENTS

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

115. REIMBURSEMENT FOR LOSSES INCURRED BY GENERAL AVIATION ENTITIES

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

116. IMPASSE PROCEDURES FOR NATIONAL ASSOCIATION OF AIR TRAFFIC 
                    SPECIALISTS

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

117. FAA INSPECTOR TRAINING

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

118. AIR TRAFFIC OVERSIGHT SYSTEM (ATOS)

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

119. PROHIBITION ON AIR TRAFFIC CONTROL PRIVATIZATION

House bill
      Prohibits DOT from privatizing the functions performed by 
its air traffic controllers who separate and control aircraft. 
States that this prohibition does not apply to the functions 
performed at air traffic control towers that are operated by 
private entities under the FAA's contract tower program. This 
exemption covers the current air traffic control towers that 
are part of the FAA contract tower program and to non-towered 
airports and non-federal towers that would qualify for 
participation in this program.
Senate amendment
      Prohibits DOT from privatizing the functions performed by 
its air traffic controllers who separate and control aircraft 
and the functions of those who maintain and certify those 
systems. Section shall not apply to an FAA tower operated under 
the contract tower program as of the date of enactment.
Conference substitute
      No provision.

120. AIRFARES FOR MEMBERS OF THE ARMED FORCES

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

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

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

122. INTERNATIONAL AIR SHOW

House bill
      This section directs DOT, in consultation with the 
Secretary of Defense, to study the feasibility of the United 
States hosting an international air show. A report is required 
by September 30, 2004.
Senate amendment
      No provision.
Conference substitute
      House bill to the extent that it directs DOT to work with 
DOD on an international air show.

123. RETIREMENT BENEFITS OF AIR TRAFFIC CONTROLLERS

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

124. JUSTIFICATION FOR AIR DEFENSE IDENTIFICATION ZONE

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

125. INTERNATIONAL AIR TRANSPORTATION

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

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

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

127. GENERAL AVIATION FLIGHTS AT RONALD REAGAN WASHINGTON NATIONAL 
                    AIRPORT

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

128. CHARTER AIRLINES

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

129. IMPLEMENTATION OF CHAPTER 4 NOISE STANDARDS

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

130. JACKSON HOLE

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

131. CREW SECURITY TRAINING

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

132. STUDY OF TRANSPORTATION SECURITY

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

133. LETTERS OF INTENT TO PAY FOR AIRPORT SECURITY PROJECTS

House bill
      No provision, but section 1525 of H.R. 2144 establishes a 
grant program to airport sponsors for (1) projects to replace 
conveyers related to security, (2) projects to reconfigure 
baggage areas, (3) projects that enable EDS installation behind 
the ticket counters, in baggage sorting areas or as part of an 
in-line systems, and (4) other security improvement projects 
determined appropriate. Authorizes Under Secretary to issue 
letters of intent. Established the Federal share of projects to 
be 90% for large and medium hubs and 95% for smaller airports. 
Authorized $500M to be appropriated in each of FY04, FY05, FY06 
and FY07 to be available until expended. Prohibits the 
collection of the security fees unless appropriations cover all 
outstanding LOI commitments in a given Fiscal year.
Senate amendment
      Establishes Aviation Security Capital Fund to provide 
financial assistance to airportsponsors to defray capital 
investment in transportation security. Authorizes $500M for each of 
FY04, FY05, FY06, and FY07 to be derived from the passenger and air 
carrier security fees. Allocates funds 40% large hub, 20% medium hub, 
15% small hub, and 25% discretionary. Amounts allocated to airports are 
apportioned based on passenger enplanements. Authorizes letters of 
intent. No provision on Federal share.
Conference substitute
      Establishes within the Department of Homeland Security a 
grant program to airport sponsors for (1) projects to replace 
baggage conveyer systems related to aviation security; (2) 
projects to reconfigure terminal baggage areas as needed to 
install explosive detection systems; (3) projects to enable the 
Under Secretary for Border and Transportation Security to 
deploy explosive detection systems behind the ticket counter, 
in the baggage sorting area, or inline with the baggage 
handling system; and (4) other airport security capital 
improvement projects. Authorizes Under Secretary to issue 
letters of intent. Establishes the Federal share of projects to 
be 90% for large and medium hubs and 95% for smaller projects. 
This applies to all grants made under letters of intent 
beginning in fiscal year 2004 even if the letter was issued in 
fiscal year 2003. The Under Secretary shall revise letters of 
intent issued before the date of enactment to reflect this cost 
share with respect to projects carried out after September 30, 
2003. Requires $250 million annually from the existing aviation 
security fee that is paid by airline passengers to be deposited 
in an Aviation Security Capital Fund, and made available to 
finance this grant program. Of this $250 million, $125 million 
shall be allocated based on the following set-asides: 40% to 
large hub airports, 20% to medium hub airports, 15% to small 
and non-hub airports, and 25% to any size airport based on 
aviation security risks. The remaining $125 million shall be 
used to make discretionary grants, with priority given to 
fulfilling letters of intent. In addition to the amounts made 
available to the Aviation Security Capital Fund, there is 
authorized to be appropriated an additional $250 million to 
carry out this program. If additional amounts are appropriated 
pursuant to this authorization, 50% shall be used for 
discretionary grants, and 50% in accordance with the set-asides 
discussed above.

134. CHARTER SECURITY

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

135. COMPUTER ASSISTED PASSENGER PRESCREENING SYSTEM (CAPPS2)

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

136. ARMING CARGO PILOTS

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

137. TSA STAFFING LEVELS

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

138. FOREIGN REPAIR STATION SECURITY

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

139. FLIGHT TRAINING

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

140. REVIEW OF COMPENSATION CRITERIA UNDER STABILIZATION ACT

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

141. AIRLINE FINANCIAL CONDITION AND EXECUTIVE COMPENSATION

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

142. REVIEW OF CERTAIN AIRCRAFT OPERATIONS IN ALASKA

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

143. USING AIP FOR REPLACEMENT OF BAGGAGE CONVEYER SYSTEMS

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

144. USING AIP OR PFC FOR SECURITY

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

145. SECURITY OPERATING COSTS AT SMALL AIRPORTS

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

146. WITHHOLDING OF DISCRETIONARY GRANTS

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

147. DISPOSITION OF LAND ACQUIRED FOR NOISE COMPATIBILITY PURPOSES

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

148. GRANT ASSURANCES

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

149. STATUTE OF LIMITATION ON REIMBURSEMENT REQUEST

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

150. SINGLE AUDIT ACT

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

151. AIP FOR PARKING LOTS

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

152. ALLOWING AIP TO PAY INTEREST

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

153. ALLOWING AIP TO PAY TO MOVE BUILDINGS

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

154. APPORTIONMENTS TO PRIMARY AIRPORTS

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

155. ENTITLEMENT FOR FORMER PRIMARY AIRPORTS

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

156. CARGO AIRPORTS

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

157. CONSIDERATIONS IN MAKING DISCRETIONARY GRANTS

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

158. FLEXIBLE FUNDING FOR AIP ENTITLEMENTS

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

159. FLEXIBILITY FOR GENERAL AVIATION ENTITLEMENTS

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

160. NOISE SET-ASIDE

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

161. PURCHASE OF AIRPORT DEVELOPMENT RIGHTS

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

162. GARY, INDIANA

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

163. RELIEVER AIRPORTS SET-ASIDE

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

164. UNUSED AIP FUNDS

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

165. MILITARY AIRPORT PROGRAM

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

166. TERMINAL DEVELOPMENT COSTS

House bill
      This section restates two provisions in current law that 
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.
Senate amendment
      Reduces the waiting period for an airport that has used 
AIP to repay the cost of terminaldevelopment from 3 years to 1 
year before they can use AIP again for terminal development.
Conference substitute
      House bill and Senate amendment.

167. AIRPORT SAFETY DATA COLLECTION

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

168. AIRPORT PRIVATIZATION PILOT PROGRAM

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

169. FEDERAL SHARE

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

170. INNOVATIVE FINANCING TECHNIQUES

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

171. AIRPORT SECURITY PROGRAM

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

172. LOW-EMISSION AIRPORT VEHICLES AND INFRASTRUCTURE

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

173. COMPATIBLE LAND USE PLANNING AND PROJECTS BY STATE AND LOCAL 
                    GOVERNMENTS

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

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

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

175. MIDWAY ISLAND AIRPORT

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

176. INTERMODAL PLANNING

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

177. STATUS REVIEW OF MARSHALL ISLANDS AIRPORT

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

178. REPORT ON WAIVER OF PREFERENCE FOR BUYING GOODS PRODUCED IN THE 
                    UNITED STATES

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

179. EXTENSION OF EXPENDITURE AUTHORITY

House bill
      Allows grants to be made from the aviation trust fund for 
the purposes specified in this Act.
Senate amendment
      Similar provision but adds a conforming amendment to 
section 9502(f).
Conference substitute
      Senate amendment plus additional language making a 
technical correction to the domestic flight segment portion of 
the airline ticket tax. Beginning with calendar year 2003, the 
domestic flight segment portion of the airline ticket tax is 
adjusted for inflation annually. The technical correction 
clarifies that, in the case of amounts paid for transportation 
before the beginning of the year in which the transportation is 
to occur, the rate of tax is the rate in effect for the 
calendar year in which the amount is paid. The provision is 
effective for flight segments beginning after December 31, 
2002.

180. ADDITIONAL MATTERS

      The Managers strongly encourage the FAA and the 
Occupational Safety and Health Administration to continue to 
work under the framework established in the August 2000 
Memorandum of Understanding and establish a coordination 
mechanism to determine which existing and future OSHA 
regulations can be applied to an aircraft in operation without 
compromising aviation safety.
      The Managers are aware of concerns about the impact of 
aircraft noise on residential areas, including those 
surrounding the communities of the four airports of the Port 
Authority of New York and New Jersey (PANYNJ). Although the FAA 
determined that aircraft noise pollution was the strongest and 
most widespread concern raised by the public at its twenty-
eight public scoping meetings in five states in 2001, the 
PANYNJ has not undertaken action to mitigating residential 
complaints in the neighborhoods surrounding its airports. 
Therefore, it is the hope of the Conference Committee that the 
PANYNJ will work in good faith with the New York and New Jersey 
Congressional delegations to address these issues, including 
undertaking a part 150 study to qualify for Federal residential 
soundproofing dollars or to begin undertaking residential 
soundproofing in the most affected areas in the footprint with 
particular focus on the neighborhoods surrounding LaGuardia 
Airport.
      The Managers strongly encourage the FAA to work with 
state aviation agencies and universities to develop a national, 
innovative program that would offer practical training and 
information resources for those who operate, maintain, and 
administer public use airports across the nation on topics such 
as pavement maintenance, snow and ice control, project 
development and funding, wildlife control and safety and 
operations. To further this program, the Committee recommends 
that FAA consult with state aviation agencies and universities 
that have created similar programs for general aviation 
airports in their state.
      The legislation includes a section that amends section 
4(b) of the Rivers and Harbors Appropriations Act of 1884 to 
clarify that the restriction in that section with respect to 
taxes on vessels or other water craft does not apply to 
property taxes on vessels or water craft, other than vessels or 
water craft that are primarily engaged in foreign commerce, so 
long as those taxes are constitutionally permissible under 
long-standing judicial interpretations of the Commerce Clause. 
To assure the consistent application of legal principles 
concerning non-Federal taxation of interstate transportation 
equipment, the amendment in this section is effective as of 
November 25, 2002. Over the years, the U.S. Supreme Court has 
ruled on the constitutionality of property taxes on various 
forms of interstate and international transportation equipment 
in a number of cases, including but not limited to Pullman's 
Palace Car Co. v. Pennsylvania, 141 U.S. 18 (1891) (railroad 
rolling stock); Ott v. Mississippi Valley Barge Line Co., 336 
U.S. 169 (1949) (barges on inland waterways); and Braniff 
Airways, Inc. v. Nebraska State Board of Equalization, 347 U.S. 
590 (1954) (domestic aircraft); Complete Auto Transit, Inc. v. 
Brady, 430 U.S.274 (1977); and Japan Line v. County of Los 
Angeles, 441 U.S. 434 (1979). This line of decisions has sustained 
property taxes in interstate transportation cases when the tax is 
applied to an activity with a substantial nexus with the taxing entity, 
is fairly apportioned, does not discriminate against interstate 
commerce, and is fairly related to the services provided by the taxing 
entity. The exception for state and local taxes on vessels or 
watercraft that are primarily engaged in foreign commerce implements 
the holding of the Japan Line case. The committee notes that section 
4(b) does not affect whether sales or income taxes are applicable with 
respect to vessels. The purpose of section 4(b) was to clarify existing 
law with respect to Constitutionally permitted fees and taxes on a 
vessel, but also to prohibit fees and taxes imposed on a vessel simply 
because that vessel sails through a given jurisdiction.
      The Managers are aware of the concerns raised about the 
recent increase in shipment interruptions during the 
transportation of essential radiopharmaceuticals due to new air 
transportation security mandates. The Committee recommends that 
the Secretary of Homeland Security, in consultation with the 
Secretary of Transportation, review current procedures for 
shipment of radiopharmaceuticals and recommend actions to 
ensure the timely delivery of them. If the Secretary of DHS 
undertakes this study, the Secretary shall also submit 
recommendations to the House Committee on Transportation and 
Infrastructure and the Senate Committee on Commerce, Science, 
and Transportation on the actions taken to ensure that timely 
delivery of these medical products by commercial aircraft no 
later than 180 days after the enactment of the Act.

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

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

                                
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